[DISTRICT STUDY

OF KANPUR]

SUBMITTED TO SUBMITTED BY
 INDEX
Sr.No. Contents Page No.
1 Acknowledgement 2
2 Objective of Study 2
3 Research Methodology 3
4 Limitation of Study 3
5 Details of Study 4
6 Questionnaire 4
7 Uttar Pradesh 5
8 Demographic Data 6
9 Climate 7
10 Important Minerals 7
11 Map of Uttar Pradesh 7
12 Advantages of U.P 8
13 Industrial Policy 10
14 Kanpur 19
15 History 20
16 Cultural History 22
17 Development of Industries 23
18 Kanpur Overview and Map 24
19 Geographical Data and Map 25
20 Demographic Data 26
21 Industrial Sector 27
22 Industrial Cap of U.P 31
23 Leather Industry 32
24 Super House 33
25 Director’s Report 39
26 Eldeco Constructions 42
27 Textile Industry 47
28 Gutkha Industry 48
29 Panparag 49
30 Rotomac 50
31 Verag Tech 55
32 Major Exporters 57
33 Hazards From Index 58

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 Acknowledgement

This project is about the district study of Kanpur, which I did as my

winter project. It was very informative as I got to know the very basic
complexities of different industries.

First of all I would like to express my sincere thanks to the Additional

Director of Industries Mr. O. P. Srivastava who gave me better ideas &
thoughts about the industries & gain a bit of industry exposure.

I worked on this project from 28th october, 08 to 11th december, 08

and collected information by visiting various industries situated in the
industrial areas of Kanpur.

I was also supposed to get a questionnaire filled by the officers &

the workers of various industries visited.

It was a good experience, which provided me a great insight of the

Research Survey Analysis. This work helped me in understanding the
intricacies & complexities involved in the analysis & the interpretation of the
data.
The moral support & the perfect co-ordination have result in the
successful completion of the project.

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 Objectives Of The Study

• To analyze the base of rural industrialization.

• To analyze the role of small and medium scales industry towards grant
of socio-economic life of the people.

• How far it has created an environment for the opening of the industries
present in our neighborhood, example road and transport. Telecomm,
water resources etc.

• To study the demographics of rural industrialization as 70% of the

population is living in villages.

Research Methodology

• Collection of data through a structured questionnaire

• Primary Research was conducted in industrial areas of Kanpur.

• Various factories were visited

• Face-to-face interview

• Structured Questionnaire

• Both open-ended & close-ended questions

Limitation Of The Survey

• Meetings with industry officers

• Study limited to the specified sectors of Kanpur

• Climatic condition

• Time barriers

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 Details of the study

Primary research was conducted at industrial areas of Kanpur. Various

factories were visited and details were collected. Various factories visited
were Eldeco, LML, Superhouse, Rotomac and Virag Tech. Details were
collected about source of raw materials, transportation facilities enjoyed by
it, problems faced by the factory at the micro and the macro level. Various
workers were interviewed and they were asked about the working conditions
and the wages given to them. I had meetings with the heads of various
departments who told me, how they co-ordinate and communicate with other
departments. I also fetched information regarding profits and losses incurred
by the companies in the preceding years.
Questionnaire
Questionnaire was divided into two parts one was given to the officials and
the other to the workers.

QUESTIONS ASKED TO THE OFFICIALS

1.How far is the factory from the city?
2.Which mode of transportation is convenient and easily available?
3.Are the roads surrounding the factories katchcha or pakka?
4.How many monthly meetings are held between the various departmental
heads?
5. Is the communication between the departments proper?
6.What is the number of male and female workers in the factory? Do you
employ children also?
7. Which cities are the suppliers of raw materials?
8. What are the methods followed to control Pollution? Where is garbage
disposed?
9. What are the provisions for medical facilities for the workers?
10. What kind of relationship exists between the workers and the
management? Are there any strikes in this unit?
11.Are the working conditions proper for the workers? What type of
incentives is given to them?
12. How much is the total production of the factory per year? What is the
provision of supply of electricity?
13. What is the rate of return of the previous years? Is it satisfactory?
14. What are the problems at the macro level?
15. What are the problems at the micro level?
16. What is the future plan to expand the unit?

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 Uttar Pradesh

Location: - Northern part of India. It is a border of Nepal and Tibet in China -Northeast,
West, the state of Madhya Pradesh -South, and the state of Bihar -Southeast. Also, Uttar Pradesh
can be divided into three regions by different geographical conditions: Himalayan region - North,
the Gangetic plains - Middle, and the Vindhyan hills and plateau - South.

History: - The history of Uttar Pradesh is very old and fascinating and it had a great impact
on Indian culture and civilization. Uttar Pradesh was known as Brahma Fishi Deshi (meaning the
land of sages and saints) in the later Vedic Age because of the identity as a dwelling of
spirituality. Great epics Rama and Krishna (Ramayana and the Mahabhaharata) have been
inspired by UP. Buddhism and Jainism appeared during sixth century B.C. in UP. Great Buddha
gave his first sermon at Saranath, and he set foundations of his order in UP. It is said that
Mahavira, who founded Jainism, died at Doora in UP. In third century B.C., the entire area of UP
was in the empires of the Great Mauryan Monarchs. The rich culture of UP brought new
proportions to the Middle Age Indian history. During Mughal Period, there were peaks of
perfection and honor that effective administration, brotherhood, art, architecture, music, and
culture reached. UP was under Muslim rule and directed to the way to a new integration of
Hindu and Islamic cultures in the medieval period. After Great Mughal Period, UP remained its
intellectual leadership under the British administration. The British united Agra and Oudh into a
province named the United Provinces of Agra and Oudh. In 1935, the name was shortened to
United Provinces. After India became independent in 1950 January, the United Province changed
its name to Uttar Pradesh. In 1996 August 15, Prime Minister Deve Gowda named the Garwal
region Uttarkhand as a new state although it is yet to be formed.

Language: - Hindi and Urdu

Religion :- Hinduism, Jainism, Buddhism, and Islam

Best-known features :- Majestic Taj Mahal, monument of eternal love built by

Shahjahan in Agra, is the most well-known landmark in UP. Hindus consist of more than 80
percent of the entire population and Muslims, more than 15 percent.
Uttar Pradesh has a biggest population of nearly 187 million. The western plain
is the most urban region. Agriculture is the most important section of the UP’s economy,
employing about three-fourths of the work force. UP has the largest production of food grain and
oil seeds in India. In addition, UP ranks the first in the production of wheat, maize, barley, gram,
sugar cane, and potatoes. The three most important industries of UP are sugar, cotton fabrics and
diversified food preparations. Goods carrier equipment, photostat machines, chemicals, polyester
fiber and steel tube galvanized sheets are the other big industries of UP.Uttar Pradesh famous for
handicrafts such as, carpet weaving, hand printing, chikan (a type of embroidery), metal
enameling, brocade and brass, and ebony work. Also, UP has the biggest Brass and Copperware
manufacture area in India.

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 DEMOGRAPHIC DATA

Capital Lucknow

Area 2, 40, 928 sq. km.

Population ( 1991 Census) 13.91 crore

Male 7.40 crore

Female 6.51 crore

Rural Population 11.15 crore

Urban population 2.76 crore

Density of Population 473 (per sq. km.)

Literacy 56.30 per cent

Male literacy 68.60 per cent

Female literacy 48.31 per cent

Females per 1000 Males 879

Divisions 19

Districts 70

Cities 753

Gram Panchayats 58, 605

Nagar Nigams 11

Tehsils 356

Development Blocks 901

Villages 1,23,950

Habitated Villages 1,12,539

Non-habitated Villages 11,102

Families 22378 (thousand)

Residential Houses 2, 14, 07, 433

Main Rivers Ganga, Yamuna, Ramganga, Gomatiand Ghaghara

Paddy, Wheat, Barley, Jwar, Bajra,Maize, Urad,

Crops
Moong, Arhar, Gram.

Fruits Mango, Guava, Apple.

Main Minerals Limestone, Dolomite, Magnesite,Soapstone, Gypsum,

Glass sand,Marble, Granite, Phosphorite,Bauxite,Non-

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 plastic, Fireclay, etc.

Cement, Vegetable oils, Textiles, Cotton yarn, Sugar,

Main Industries
Jute, Glassware and Bangles.

Chikan work, Zari work, Wooden toys and furniture,

Main Handicrafts
Terracotta toys and Brass work.

Karma, Chanchali, Chapeli, Chholia,Pandav, Vadi-

Main Folk dances
Vadin,Lang and Bhaila.

Universities 26

Polytechnics 89

AIR Stations 13

Degree Colleges 509

Medical Colleges 9

Engineering Colleges 12

Television Centers 2

Constituencies of Lok Sabha 85

CLIMATE
Maximum Temperature during May-June 48.0°C
Minimum Temperature during January 0.0°C
Rainfall 26-54 mm

IMPORTANT MINERALS FOUND IN THE STATE

Varanasi & Banda Bauxite

Mirzapur Coal
Lalitpur Copper
Mirzapur, Sonbhadra & Banda Dolomite
Allahabad, Banda & Mau Glass Sand
Sonbhadra & Mirzapur Lime / Limestone
Mirzapur, Sonbhadra Marble
Mirzapur Non Plastic Clay
Lalitpur Uranium

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 ADVANTAGES OF UTTAR PRADESH

With a disciplined, productive and inexpensive manpower, it has attracted

some of the largest international companies to set-up their business in the
state. Thus today U.P. has Coca-Cola, Pepsi, Glaxo, Daewoo, Honda, Piaggio,
and innumerable others doing thriving business. U.P. is presently the address
of every one who matters in the industry in India.

Endowed with fertile land, salubrious-climate and mighty- river systems, it

has long been, the granary of India. It produces 19% of India's food
grains, 22% of India's vegetables and 38% of the nation's potatoes. It
has the largest livestock in the country and its milk production is also the
highest. It is the largest producer of sugarcane and is also first in the
manufacture of the sugar. The carpets & brassware of U.P. are well known
internationally. They symbolize the immense strength of the traditional
industries of the state. The perfumes of Kannauj and the Silk & Brocade
industry of Varanasi reflect the grandeur of the exotic east.

Uttar Pradesh produces 38% of India's Wheat-production, 20% of Paddy,

21% of Sugarcane, 34% of Groundnut, 17.5% of Rapeseed, 8% of Fruits and
14% of Vegetables. It has the unique distinction of producing 4% of world's

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wheat and is the leading producer in India for Sugarcane, Vegetables and
Potatoes. It also has the largest livestock population and highest milk
production in India, offering excellent opportunities for setting-up food
processing units. Floriculture, Mushroom and other Horticulture based
industries provide exciting prospects. U.P is among the largest producers of
agricultural commodities within the country.

In case of the Industries sector, the State Government of UP is giving

emphasis on setting up of export oriented units and units where
substantial foreign investment is forthcoming. There is considerable scope
for investment in this sector in U.P. as traditionally this state has a
large population of the persons engaged in this manufacturing.

Leather industry is the fourth largest foreign exchange earner in India

after textiles and garments, gems and jewellery and engineering goods. India
aimed to achieve 10 per cent share(present share 5%) of the world leather
trade by 2000 AD, the target that it has quite successfully reached. With the
highest bovine population in the world, and availability of cheap skilled
labour (who have been in the business for generations), India has the
potential to quiet easily surpass this target.

• U.P. is one of the most important states in India holding sizeable

population of livestock. Claiming a share of 22% U.P. ranks 1st in case
of Buffalo and 2nd in case of Cattle having a share of 12%. With
regards to Goat and Sheep it has 4th and 6th position respectively.
Thus, U.P. has a very strong raw material base and all types of main
raw material for leather industry are available.

• Major production centers and number of leather and leather products

industries in U.P. are to the tune of approx. 11500, of which Kanpur
and Agra are the two famous production centre in the world.

• Kanpur is a prominent centre for leather processing. About 200

tanneries are located in Kanpur. Kanpur tanneries specialize in
processing hides into heavy leather (Sole, harness and Industrial
leather). This is the only centre in India where saddler products are
manufactured. Agra has been the biggest centre for shoe
manufacturing in the country.

• Apart from these traditional centers for leather and leather products
manufacturing in U.P., NOIDA has recently emerged as another major
centre especially for leather footwear and leather garments. NOIDA

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 provides very good infrastructural facilities and establishment of FDDI
in NOIDA is expected to promote more footwear.

• Meerut is another centre for production of sports goods. Exports of

leather goods in the year 1995-96 were Rs.7773.20 million, which was
16.6% of the total exports from India.

INDUSTRIAL POLICY

STRATEGY

Private Participation

The State will actively promote the participation of the private Sector in
the industrial and economic growth of the State. The State accepts its role in
nurturing private economic activity and entrepreneurship. It recognizes
generation of wealth in the Private Sector as necessary for the overall
prosperity of the State. It will, therefore, endeavor to forge a meaningful
partnership with industry, in policy formulation and its actual execution and
implementation.

Balanced development of tiny, small & heavy sector

Small and tiny sectors, play an important role in creating a large number
of employment opportunities besides providing a wide range of goods and
services. Therefore, the State shall create conditions for a balanced and

11
harmonious growth of all segments of the Industrial Sector such as Heavy,
Medium, Small and Tiny Sectors.

Strengthening of Traditional Industries

Traditional industries have thrived in the State, for centuries, and along
with varied cottage industries, have been the backbone of the State's
economy. They will be strengthened, augmented and made competitive in
terms of quality, technology, design, and packaging and marketing.

Promotion of Exports

Exports are not only vital to the national economy, but they serve to
significantly enhance the professionalization of local industry and the
competitiveness of its products. A facilitative atmosphere will be provided for
the promotion of exports from the State and to enhance the competitiveness
of exportable products.
Woo NRI Investment
There is a tremendous potential for NRI investments in the State.
Through their entrepreneurial skills and abilities, Indians, specially residents
of Uttar Pradesh and the neighboring States, have made a mark in every
field of human activity abroad. The State shall create an attractive
environment for them to invest in the State. Procedures and systems shall be
so modified, as to facilitate their investment.

Attract Foreign Investments

Foreign investment is necessary for projects requiring large investments,

like power, roads, bridges etc. The State shall attract foreign direct
investment and create circumstances, where Uttar Pradesh becomes the
leading State in the country for foreign investments.

Assured security of life & property

In order to achieve the overall objectives of the New Industrial Policy

1998, the State shall ensure creation of an atmosphere of security to develop
confidence in the entrepreneurs. Law & Order machinery will be toned-up in
a way to be responsive to the needs of industry. Uttar Pradesh, has suffered
from a stereotyped image, over the last many years, as an insecure State.
However facts speak otherwise. The data published by the 'National Crime

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Records Bureau', authentically establishes, that in terms of rate of crime,
Uttar Pradesh is one of the better States of the country. This is at variance.
to the popular myth, that has been in circulation. The State assures security
of life & property, to its entire population in general and those engaged in
productive economic activities in particular. Nodal Police Officers, have been
appointed in all districts to attend to the law & order needs of industry. A
'Special-Task-Force' has been constituted, to effectively check the activities
of identified criminals. Decision has been taken to organize Tripartite-
Meetings' between Magistracy. Police and Industry at the district level, to
address all the problems related to law & order, at the cutting-edge itself.

Recognition-of the role of service sector

Over the years, the tertiary sector has emerged, as an important avenue
of employment and economic activity. Its critical role as Service Industry, has
to be recognized, for faster economic development and reduction of pressure
on land. The State shall create an environment conducive to rapid
development of this Sector free from unnecessary regulation.
Interaction with Industry

It is appreciated, that the process of industrialization of the State, should

be a synergic effort of industry and Government. Governmental attitudes ,
will change so as to perform a facilitative role. Industry will be consulted and
involved in the formulation and implementation of policy, to the extent, that,
industry will play the major role in determining the parameters of
industrialization.

Formulation of Industry specific Tailor Made Packages

In order to respond to the needs of specific segments of industry, a

tailor-made support package will be evolved on a continuing basis, in
consultation with the industry itself. The State, shall also develop, a package
of incentives and support services, to be extended for development of
entrepreneurship in selected sectors, particularly in rural areas. Traditional
industries and crafts, will be supported and strengthened by provision of
inputs to enhance their viability and competitiveness.

Review of Tax Structure

The State, shall, also continuously review and revamp wherever

necessary, the entire tax structure, so that it reflects the requirement and
expectations of industry.

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Preservation of Environment and Cultural Heritage

Emphasis shall be laid, on promotion of such industrialization. which not

only preserves the environment and cultural heritage of the State, but also
revitalizes and forcefully reinforces it.

Revitalization of existing Investments to make them productive

Uttar Pradesh is one of the leading States, in terms of existing

investments in Industry. However, a number of Industrial units, especially in
the small sector are facing several difficulties, which have impacted
adversely on their viability, The State recognizes the need to revitalize them,
so that the existing investments in them, could be made productive once
again.

Up gradation of Technical Entrepreneurial skills

In order to develop a culture of entrepreneurship, special emphasis will

be laid on the up gradation of technical skills and entrepreneurial tools.

Infrastructure

Infrastructure plays an extremely important part in industrialization.

High quality infrastructure, provides competitive edge to industry, in more
than one ways. On the one , it increases the productivity of capital and on
the other, it reduces the cost of production and marketing. Hence in the
current process of liberalization and globalization. the availability of top
quality infrastructure facilities, has become the most decisive factor in
determining the location of industries and the extent of investments.
Inadequate attention to the creation of infrastructural facilities in the
past, can be said to be a crucial impediment in the efforts of the State, to
realize its full economic and industrial potential with which it is abundantly
endowed. It is imperative, that this major impediment is removed and
conditions be created for better realization of the Slate's potential.
Highest priority will now be provided, by the State to the creation of
high quality infrastructural facilities. The speed, with which decisions have
been taken and implemented, even to the extent of amending existing laws,
to facilitate the construction NOIDA Toll Bridge. Between NOIDA and Delhi,
demonstrates the importance that the State attaches to infrastructure
projects.

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 Land, Power, Telecommunication, Air and Road transport are the most
important components of Infrastructure. The State will adopt dynamic
policies and take positive initiatives, to create an investor friendly
environment, in the Infrastructure Sector. The Policy of the State in the
Infrastructure Sector based on the following three pillars :-

Three Pronged Strategy

1. Development of Infrastructure, through Private Sector participation.

2. Comprehensive and rapid development of selected Geographical
Corridors, with high quality infrastructural facilities.
3. Up-gradation of existing Infrastructure! facilities.

Infrastructure Initiative Fund

Private Sector Participation in Major Infrastructure Projects, through

Infrastructure Initiative Fund. Fund to associate Multilateral Agencies and
International Financial Institutions
The size of investments and long gestation periods of infrastructure
related projects, have been a major bottleneck, in the privatization of
infrastructure. Inadequate and incorrect assessment of commercial viability
and wrong formulation of these projects, have inhibited the Private Sector
from investing in them. The State has decided, to set up an Infrastructure
Initiative Fund, to address this issue effectively, and to facilitate the
participation of the Private Sector, in major infrastructure projects. The
Infrastructure Initiative Fund, will engage the services of experts agencies,
for examination of feasibility, formulation of major projects such as Express
Highways. Bridges, Airports and Power Stations, determination of
concessions and selection of promoters. Special Purpose Vehicles will be
established for the implementation of selected projects, through the
mechanism of Infrastructure Initiative Fund. Multilateral Agencies and
International Financial Institutions will be associated with the infrastructure
development of the State through participation, in this Initiative Fund, which
will also use international expertise and know-how for the development of
the State.
Cabinet Committee to act as apex body for Infrastructure related
projects

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To secure expeditious decision making, in regard to Infrastructure related
projects, the Cabinet Committee on Economic Development under the
Chairmanship of the Chief Minister, would act as the apex body for
Policymaking.

Working Group under Chief Secretary to provide preliminary

clearances

The Working Group on Economic Development, constituted under the

chairmanship of Chief Secretary, will provide all the preliminary clearances
and approvals for infrastructure related projects. This Group will obtain the
approval of the Cabinet Committee, wherever necessary. For this purpose, it
will act as the Secretariat of the Cabinet Committee for Economic
Development.
Development of Geographical Nodes / Industrial Corridors Concentrated
and accelerated development of specific geographic locations as Industrial
Corridors
While the State is committed, to the balanced development of all the regions
of the State, it has become necessary to develop certain specific locations,
for the full realization of their industrial potential. In this context the State
will develop Industrial Corridors in the various regions of the State in a
phased manner. In the first phase, these Industrial corridors will be as
follows:

1. Noida- Greater Noida- Ghaziabad- Gautam Buddha Nagar

2. Merrut -Moradabad-Bareilly.
3. Agra- Aligarh- Firozabad- Khurja (Bulandshahr)-Kosi (Mathura).
4. Lucknow- Kanpur.
5. Allahabad- Bhadohi -Varanasi -Mirzapur.
6. Gorakhpur- Basti- Deoria
7. Jhansi- Lalitpur-Jalaun.

Corridors to develop as Areas of Excellence

These Corridors, will be developed as areas of excellence, with high

quality Industrial and social Infrastructure, so that, the already existing
industrial potential of these areas can be forcefully highlighted to attract
greater investments. These corridors will also facilitate planned and optimal
utilization of the State' s resources.

Infrastructure Mapping

Highest priority will also be given to the Upgradation of the existing

Industrial Infrastructure. In the first stage, a detailed Infrastructure Mapping

16
will be carried out to evaluate the status, of existing infrastructural facilities.
On the basis of this mapping, gaps and inadequacies in the existing
infrastructure will be identified and an Action Plan will be formulated for their
expeditious removal.

Restructuring of UPSIDC

The UPSIDC, will be suitably restructured, to improve the maintenance of

the existing Industrial Areas. The owners of the Units, situated within the
Industrial areas, will be closely associated with the maintenance of these
Industrial Areas. Wherever it is commercially viable, the maintenance of
Industrial Areas will be privatised.

Industrial Cooperative Societies for maintenance of Industrial

Estates

Industrial Cooperative Societies, will be constituted and associated with

the maintenance of Industrial Estates working under the control of
Directorate of Industries. The Government, will, supplement the contributions
made by these Industrial Cooperative Societies upto a ceiling of Rs. 10 lacs.

All future Industrial Areas to be developed as Integrated Industrial

Townships

In view of the remarkable success of NOIDA and Greater NOIDA as

Integrated Industrial Townships, this model will be extended to other pans of
the State. All future Industrial Areas, will be developed as Industrial
Integrated Townships, with superior quality social and economic
infrastructural facilities like roads, power, water supply, drainage, residential.
educational and health facilities. Private Sector participation, in the
development of such areas, will be encouraged

Special Industrial Areas for Promotion of Agro based and Food

Processing Industries

To promote Agro-based and Food Processing Industries. Special

Industrial Areas will be developed in the vicinity of major Mandis of the State.
This will help to overcome the problems, arising out of inadequacy or storage
and transportation infrastructure, while making available, other common
facilities. Priority will be accorded, to setting up of Cool Chains in the Private
Sector, to fulfill the needs of the agro-based industry. The State will provide

17
active cooperation in project formulation and financing of these, through the
State Financial Institutions.

Upgradation of Infrastructure in major exporting areas

Internationally competitive infrastructural facilities will also be

developed, in the major Exporting areas of the State. Infrastructure
development related funds of the Government of India and other agencies
would be optimally utilized, in conjunction with the State resources to
achieve this objective.

24 Hour Uninterrupted Power Supply

Continuous and high quality power supply is extremely important for the
development of industries. Due to shortage of power in the State, its
availability to industrial units, has been uncertain in the past. The State will
take strong measures to increase the Generation of Power and ensure its
continuous availability to the industry. Highest priority, will be given, to the
implementation of those Power projects, for which MOUs and PPAs have
already been signed.
24 hours continuous power supply to all industrial areas, Industries
above Rs.50 crores. EOUs s and Agro based and Food Processing Industries
with investment above Ks. 10 Crores

The Stale will ensure 24 hour uninterrupted supply of power to the

industries situated in the Industrial Areas. All such Industrial Areas, as
receive power supply, from 132 KVA transmission system, will be exempted
from all forms of rostering, unless required in the interest of the grid. To
achieve this, the entire transmission and distribution system, related to such
industrial areas, will be upgraded. All Export Oriented Units and other
industries with an investment of more than Rs.50 crores, which are situated
out side the Industrial Areas, will also be provided continuous power supply,
through dedicated feeders. This facility, will also be provided to Electronic,
Agro-based and Food Processing industrial units with an investment of Rs. 10
crores and above.

Feeders with 75% industrial load to be declared as industrial

feeders and exempted from all power cuts

All feeders, which have more than 75 per cent industrial connected load,
will be treated as industrial feeders, and will be exempted from rostering.
The UPSEB will make arrangements, for the separation of all connections of
other categories from such feeders. No tapping from dedicated feeders,

18
setup at the cost of Industry itself, will be allowed, except in cases, where
the concerned industry enters into a voluntary agreement with any other
Industrial Unit, giving permission for tapping.

Special Concessions for Industries drawing power from primary

system

Industrial consumers, who draw electricity from the primary

transmission system, will be provided a rebate on power tariff. The rate of
rebate will be higher than that admissible at present. However, this facility
will be made available only if the concerned industry has borne the cost of
down stepping.

Industry Associations to distribute Power in Industrial Areas

Industry Associations will be given the right to distribute Power within

Industrial Areas. For this purpose, bulk power will be made available to the
Associations at a single point. Distribution within the Industrial Areas and
collection of bills will be done by the Association. The bulk power will be
supplied at a rebate.

Permission to surrender a part of Load during period of recession

In order to make the Power rules, responsive to the economic

environment. Industries going through recession, will be provided the facility
of temporary surrender of a part of their connected sanctioned load. This
facility will be made available, on the recommendation of the Committee of
Secretaries, constituted for Rehabilitation of Sick Industries. The facility will
be provided, for a minimum period of one year and maximum of two years.
It, during this period, the industry seeks restoration of its original load, no
System Loading Charges will be charged. Small Industries, with connected
loads upto 100 HP, Mohammad Azharuddin hit the last of his three
consecutive hundreds during his sensational debut. In 1986-87, Sri Lanka
and India produced 1096 runs and lost only 17 wickets. In the 90s, India and
West Indies produced an average of 73 runs per wicket. More recently,
Shahid Afridi blitzed a 45-ball century, playing through the line and swinging
across and one could sense him almost closing his eyes as he smote the ball;
it was that kind of pitch.

Development of Industries

19
 After 1857, the development of Kanpur was even more phenomenal.
Government Harness and Saddler Factory was started for supplying leather
material for army in 1860, followed by Cooper Allen & Co. in 1880. The first
cotton textile mill, the Elgin Mills were started in 1862 and Muir Mills in 1882.
The city which once was termed as Manchester of India for its matured
cotton industry. The city which hosted (and still hosts) the world famous 'Lal
Imli' woolen factory, industries such as LML, Pan Parag, ICI Limited (now
known as Duncuns Fertilisers), one of the largest leather industries in the
world and myriad cotton mills.
The city which boosts one of the largest number of defense
establishments; To name a few Hindustan Aeronautical Limited (HAL),
DMSRDE, Small Arms Factory(SAF), Field Gun Factory and Parachute factory.
The British India Corporation (BIC) was headquartered here and led the
development of many industries. The Juggilal Kamlapat Singhania family
launched many industrial units between 1930 and 1970. The group is known
as J K Group of Industries till date. The Jaipuria family contributed to the
patriotic cause, by building the Swadeshi Cotton Mills in response to charges
that the foreign rulers were raiding India of its cotton only to sell back
textiles to the residents. Kanpur was known as the "Manchester of India"
during the 20th Century. As of now, the city owns many leather tanneries, a
2-wheeler factory owned by LML India, under collaboration with Italy's
Piaggio; and over a dozen Defense Ordnance Factories such as Small-Arms
Factory, Ordnance Parachute Factory etc. It is also home to the pan masala
and gutkha industry.

Many of the British contributed vigorously to charitable causes in the

city by building the Ursula Horseman Hospital, the "Hallet" Hospital, Harcourt
Butler Technological Institute, by protecting the Allen Forest (now a Zoo) and
many other efforts. Most of these are now renamed, though a lot of residents
still call them by their old names. However the distortion of names is most
visible at the railway crossing bridge next to the Railway Station, where the
now-closed Murray Company is conveniently called Mari (Dead) Company.

.
Manpower
150 qualified & experienced workers.
Capacity
• 100 tons of buff. sole finished leather per month
• 100,000 sq. ft. of buff. harness and belting finished leather per month.
Products
• Buffalo vegetable tanned "Exotico" smell free sole,

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 • "Superimo", Belting & Harness finished leathers.

SHOE DIVISION

Brief
It is our immense pleasure to introduce over selves as one of largest A
leading exporter A manufacturer of fashion shoes of India, We export our
products in countries like France, U.K., Germany, Canada, Belgium, Spain
etc.
Producing 5000 pairs of leather fashion fashion shoes per day in our two
fashion shoe factories located in Agra & Unnao (Near Kanpur). We have
state-of-art 32 station Direct Injection PU Plant for making the high quality A
latest shoes A sandals.
Our fashion range consists of Men's, Ladies in formal, casual, and Boots A
Sandals. We use all kinds of leather in our products like Sheep, Goat, Cow &
Buff.
We take part in all major footwear fairs around the world like Garda (Italy),
GDS (Germany), WSA (U.S.A.), Modacalzado (Spain), also we have in house
Design & RAD centre for developing the new designs. According to the latest
fashion trends of world footwear market.
Infrastructure
Two units with combined area of 200,000 sq. ft. with two European, fully
mechanized conveyers in each unit.
Manpower
1300 qualified & experienced workers.
Capacity
4000 pairs per day
Products
All types of shoes for men and ladies with different sole options such as TPR,
PVC, Neolite, Rubber, Leather & PU.

FASHION SHOE DIVISION

Brief
It is our immense pleasure to introduce over selves as one of largest A
leading exporter A manufacturer of fashion shoes of India, We export our
products in countries like France, U.K., Germany, Canada, Belgium, Spain
etc.
Producing 5000 pairs of leather fashion fashion shoes per day in our two
fashion shoe factories located in Agra & Unnao (Near Kanpur). We have
state-of-art 32 station Direct Injection PU Plant for making the high quality A
latest shoes A sandals.

21
Our fashion range consists of Men's, Ladies in formal, casual, and Boots A
Sandals. We use all kinds of leather in our products like Sheep, Goat, Cow &
Buff.

SAFETY FOOTWARE DIVISION

Brief
SAFETY FOOTWEAR DIVISION was established in 1995 as a Joint
collaboration company with the U.K.Gaint M/s.G.B.Britton for producing
Direct Vulcanised Rubber Safety Footwear.
During the span of 10 year the division has multiplied its size, capacity and
product range. With our installed capacity for producing 5500 pairs/day on
diversified product range i.e. Direct Injection double density PU/PU, PU/TPU,
PU/RUBBER, DIRECT INJECTION PVC, CEMENTED & GENUINE GOODYEAR
WELTED CONSTRUCTION, the unit is also capable for producing premium
range of footwear i.e. Western Cow Boy Boots.
Infrastructure
161,400 sq. Area
Manpower
650 qualified & experienced workers.
Capacity
5500 pairs per day: 2500 PU Injected, 2000 Rubber Vulcanized, 500
Goodyear welted and 500 cemented
Products
Single / dual density PU & TPU Injected, Goodyear Welted, Rubber
Vulcanized, PVC Injected, Cemented (hiking / western) & specialized
(firemen's / foundry) footwear
Quality Standards
ISO 9002 unit with certifications from EN345, CSA, ANSI and Australian
standards

Infrastructure
Three-storey building with covered area of 26,600 sq. ft and machines
imported from France, Germany & Japan
Manpower
150 qualified & experienced workers.
Capacity
1500 pieces per day.
Products
Men & Ladies Leather Portfolios/Business Case, Leather Wallets, Hand Bags,
organizers, folders and other accessories.
Quality Standards
ISO 9002

TEN YEAR RECORD

22
 CONSISTENT GROWTH OVER LAST 10 YEARS

TURNOVER BOOK VALUE

NET WORTH

DIRECTOR’S REPORT

DIVIDEND
In order to meet requirement of capital expenditure and Working Capital,
your directors have not recommended any dividend for the year.
Financial Performance :
The company has achieved the sales and other Income of Rs. 22216.22 lacs
against Rs. 18127.45 lacs reported last year, thereby registering impressive
growth of 22.55%. The Profit after Tax was Rs. 570.18 lacs during the year
under review as compared to Rs. 487.13 lacs reported during the previous
year.
The company has established its brands in international market. The
fashion shoes of the company are being exported under the brand name of

23
`Allen Cooper' and Safety Shoes are being exported under the brand name of
`Double Duty'. Further, the company is supplying its products to the owner of
very prestigious top brands of USA, UK, Germany and France.

MANAGEMENT DISCUSSION AND ANALYSIS

Industry Structure and Developments :

The leather industry is spread in different segments, namely, Finished
Leather Footwear, Footwear Components, Leather Garments and Leather
Goods including Bags, Saddler, Harness and Leather Gloves etc. The major
production centers for leather and leather products are located at Chennai,
Ambur, Ranipat, Vaniyambadi, Trichi and Dindigul,in Tamilnadu, Kolkata in
West Bangal, Kanpur, Unnao and Agra in Uttar Pradesh, Jallandhar in Punjab,
Bangalore in Karnataka and Hyderabad in Andhra Pradesh. The leather
industry is mainly concentrated in small and medium sector.
The industry occupies a place of prominence in the Indian economy in view
of its massive potential for employment, growth and export. There has been
increasing emphasis on its planned development, aimed at optimal utilization
of available raw materials for maximizing the returns, particularly from
exports. The export of leather and leather products during 2004-05 products
was USD 2380 million against the official target of USD 2284 million.
Considering the leather industry's preparedness, the strategic steps taken
and the current growth trends, the Government of India has since revised the
export targets from USD 4.00 billion to USD 4.50 billion by 2009-10.
With the expected investment of about Rs.2000 crore in the next two-three
years coupled with significant increase in domestic demand for footwear and
enhanced sourcing from India by major overseas buying companies, the
industry is poised to scale new heights.
Under the ninth five year plan a scheme titled Indian Leather
Development Programme is being implemented by the Ministry of Commerce
and Industry, Department of Industrial Policy and Promotion.
The objectives of the scheme are mainly to bridge critical gaps in the
infrastructure for integrated development of leather industry, activate
national agencies towards tackling of perceived gaps in the industry to
promote and accredit productivity, value addition and employment, to
undertake investment/trade development activities and build-up an
information base for the leather industry. The Department of Industrial Policy
and Promotion has also launched Tannery Modernization Scheme under India
Leather Department Programme for the modernization of Tanneries.

The major threat to the Indian industry and to your Company is posed by the
aggressive selling of the production capacities by the Chinese and
Vietnamese manufacturers, who with their large infrastructure have a cost

24
advantage. Your Company is handling this threat with value additions in
design and developments.

Internal Control System and their adequacy:

The company has a proper and adequate system of internal controls to

ensure that all assets are safeguarded and protected against loss from
misuse or disposition and that transactions are authorised, recorded and
reported correctly. The Audit Committee and Internal Audit Department
regularly review the financial and operating controls at all location of the
Company. The internal control is designed to ensure that the financial and
other records are reliable for preparing financial statements and other data,
and for maintaining accountability of assets.

CONSERVATION OF ENERGY

Your Company is engaged in the manufacture of Finished Leathers and

Leather Goods and consumption of energy in this industry is insignificant as
compared to that of in other industries. However, the Company is making
continuous efforts to conserve energy wherever possible by economizing on
use of power and fuel in factory and offices. The company has also
conducted the Energy Audit of various factories and offices of the company.

business consultant, is also a director in a number of mini cement

plants.

J.
ONGOING PROJECTS

Eldeco Greens apartments (Gomti Nagar, Lucknow)

Located at ELDECO GREENS, the magnificent mini city in Gomtinagar

in the heart of modern Lucknow, this premium group-housing
complex offers a choice of

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 Eldeco Umrao Trade Complex (Faizabad Road, Lucknow)

Among the most contemporary commercial complex to come up in

North India, this promises to be a landmark in Eldeco's success story. Nestled
in the neighborhood of two of Asia's largest residential colonies, Indira Nagar
and Gomti Nagar, on the bustling Faizabad Road, the complex boasts of
several unique features such as tinted glass exterior, hydraulic capsule lifts
and a modern facade that's a designer dream come true.
The trade complex houses a range of shops, showrooms, office space and
one room studio apartments to suit every need and pocket.

Eldeco Greens Dream Villas (Gomti Nagar, Lucknow)

These are world-class independent bungalows at Gomti Nagar,

Lucknow. Situated within Eldeco Greens, these villas are quite simply, a
dream come true. Available in 1 / 2 - bedroom expandable options, each
Dream Villa offers a premium world-class lifestyle comparable with the best
anywhere. Being expandable, these grand bungalows offer you the privilege
of adding your very own touch to your personal paradise, later on.

TEXTILE

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 Khadi & Gramodyog
The department of Khadi & Gramodyog Board is playing important role
for the development of Khadi & Village Industries as per area of jurisdiction.
There appears to be lack of awareness with the various schemes launched by
Khandi & Village Board for the benefit of small entrepreneurs. The
advertisement and publicity of Khadi & Village Industries Scheme is
therefore, much necessary to increase the number of beneficiaries.

GUTKHA INDUSTRY

The Pan Masala can be rightly called the mouth freshener of Indian
origin.

It has been observed that people all over the world have developed chewing
habit especially after meals or during leisure and hours of continuous work.
Example of such

It is a major national player in the one billion plus market. Besides this,
it is exported to over 40 countries of the world.

ROTOMAC PENS PVT. LTD. GUJRAT UNIT.

product portfolio. Each product is rolled after passing through rigorous

quality tests and certification. The company's initiative towards total quality
management by incorporating ISI, and other standard specifications have
allowed it to benchmark its existing operating and management practices
with the best in the industry and establish itself as the supplier of choice by
delighting its customers with its services and products.

COMPANY PROFILE

Rotomac Pens Private Limited, belonging to a multi million-dollar

turnover VIKRAM KOTHARI ENTERPRISES, was incorporated in the year 1992.
The promoters and the manufacturers had conceived this project with an
objective to provide a good quality and economically priced ball pens in the

27
market. Rotomac today is a leading manufacturer of writing instrument and
has now increased the product portfolio under its umbrella.

Pre-project market survey, feasibility and viability studies preceding

product development had taken nearly two years. This was essential to set
up a world class integrated production facilities to manufacture and supply
writing instruments with fine tune matching nee synchronization of the ink,
tips, balls, nibs and design according to the needs of the Indian and
International consumers.

Within a short span of less than 2 years, Rotomac became a generic

name for ball pens. It acquired a distinct product identity. It brought
awareness and a revolution in the ball pen industry. Rotomac has been
attributed with changing the ball pens from a mere commodity to a highly
valued branded product.

The PRODUCT BENEFIT i.e. pleasure of smooth and perfect writing

coupled with the association of TRUST, QUALITY and RELIABILITY has been
vouched by millions of satisfied & loyal Rotomac customers in India and in 40
other countries of the world.

Our Policy

1. Customer Satisfaction
2. Concern for People
3. Commitment to Quality and Excellence
4. Innovation

Our Strategy

1. Zero Defect Manufacturing

2. Design & Development
3. Customer Relation Management
4. Total Quality Management

PRODUCT RANGE

1. Stick Ball Pen Trendy, Swift,Sigma ,Mirror,SMS ,50-50,Compac,Synergy,On-

Line ball,Merit,Fine 07,Xellent,Free ball,Scoda ,Rio,Liner Ball,X-
tion,Swing,Rapid,Always,Viva FX.

2. Retractable Ball Pens

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Mist,Joy,Klick ball,Sensor DX,Roto Gold

3. Gel Pens
SMS Gel,Sky Gel,Time Gel,Tring Std,Dream Gel,Grace Gel,NDT Gel,Ezee
Gel,Unik Gel,Iris 7 Glitter,Smile Gel ,Smile Fluro,Comfi Gel,Iris7 Gel ,Ultimate
Gel,X-treme Gel,Wega Gel.

4. Roller Ball Pens

Control 7 ,Speed ball

5. Fine Liner Pens

Microtech,Microtech Designer,Microtech New

6. Marker Pens
Mini hilighter ,Hi-Lighter,Permanent,Board Marker,OHP/CD Writer,Flip Chart
Marker.

EXPORTS

Rotomac, a leading brand of the writing instruments sector, and a part

of the 100 crore Rotomac Kothari Groups, is amongst the first few entities,
which have sought to create a niche corporate identity in this business.

With state-of-the-art manufacturing facilities in Kanpur and

Ahmedabad, and a dynamic, and intensive marketing network in India and
abroad, Rotomac have consistently concentrated on innovation in the
production of quality-oriented, yet economically priced, writing instruments.

Rotomac Kothari Group is also a leading player in other sectors like

Greeting Cards under the brand name of Rotomac Greetings, a business
where they have successful, strategic partnerships with leading international
brands like Carte Blanche and Picadilly.

The group also has a successful, operational Pan Masala manufacturing

business under the aegis of which both Sada Pan Masala and gutkha are
manufactured and marketed.

After successfully establishing itself as the undisputed market leader in

its operations of manufacturing and marketing writing instruments, The
Rotomac Kothari Group have entered the retail business with the opening of
the swank RAVE Complex in Kanpur in the year, 2001. The mall complex
consists of 70,000 sq. feet of high-end branded shopping (brands like
Pantaloon, ITC Wills Sport, Home Store, Nike, Swatch, Agrani Switch,
Himalaya Opticals, Levi's, Domino's, Cafe Nescafe, Barista, Upper Crust,
amongst others, are represented here), with a special emphasis on leisure

29
activities like a multi-cuisine food court, a speciality restaurant and the first
night club of Kanpur. Filmed Entertainment forms the anchor constituent of
this mall complex. The latest technologies have been introduced to the
cinema-going patrons of Kanpur for the first time. All three screens in the
mutiplex boast the latest sound and projection facilities along with specially
imported designer seating for maximum comfort.

As a natural extension of this success, The Rotomac Kothari Group,

under the brand name of RAVE FILMS, has now produced their first Hindi
feature film, CHURA LIYAA HAI TUMNE, in collaboration with PFH
Entertainment Ltd. The film introduces a future star in Zayed Khan, and is
directed by the noted filmmaker, Sangeeth Sivan. The film epitomizes The
Rotomac Kothari Group's philosophy – to provide wholesome, popular mass
entertainment. The film hits the screens in January 2003.

Verag Tech

Verag Tech Partners

VeragTech has engineered strategic alliances to assure their clients

that every solution is built on a solid foundation and has a secure, long-term
future. They develop in-depth skills, training and certification plans with
these reputable partners. Additionally, their partners provide them with
advance information and access to their product road maps, which ensures
that their technology solutions are more cost-effective to build and maintain
over the long term.

They collaborate with their strategic partners selectively targeting

specific markets and progressive opportunities. This allows them to offer
quality repeatable solutions, frameworks and components that speed
deployment adding time value for their customers. They are currently
inviting partners in technology, services and market development to for joint
ventures in business.

They are
software or student attendance software.

MAJOR EXPORTERS OF KANPUR

Kanpur is one of the biggest producer of Textile and Leather products

and they are exported in bulk. About 50 Tons of air cargo is generated for

30
leather products only and this is sent through surface transport to New Delhi
and from New Delhi it is sent to outside India through air cargo.

======

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