District : Chickmagalur State : Karnataka



An analysis of the existing industrial scenario of the district will help us in knowing the extent to which the district has developed industrially and the type of industries that are functioning.

Chikmagalur district has not made much headway in the industrial development.  This slow pace of industrialization is due to the factors like lack of entrepreneurship, lack of industrial infrastructure, absence of more number of large and medium scale industries, absence of railway link to the district headquarters which has isolated Chikmagalur town from rest of the state and preference of the potential investors to invest in non-industrial ventures.  Also, the high revenue under plantation crops has been responsible for the low profile of the industrial development.

An analysis of tiny and small scale industrial units existing in our district shows that as 31.3.2001, 43227 tiny and small scale industrial units have been registered with an investment of Rs.5878.44 Lakhs providing employment opportunity to 17.365 persons.

Out of the 4327 Tiny & SSI units registered, about 19 % of the total industries are wood based which occupies the predominant portion i.e. 835 tiny and small scale wood based industries have been registered with an investment of Rs. 338.88 lakhs providing employment to 2690 person.

There are 527 food & agro based industries in the district with an investment of Rs. 1933.89 lakhs providing employment to 3173 persons i.e. about 12% of the total industries registered are food & agro based.  Thus, it is observed that about 31% of total industries registered are Wood, Agro and Fcod based.  This is due to the fact that Chikmagalur district is rich in Agriculture, Horticulture and Forest resources.  Still there is a very good scope for industries based on Agriculture, Horticulture and Forest resources.  Still there is a very good scope for industries based on Agriculture / Horticultural resources like Ragi, Jowar, Banana, Jackfruit, Mango, Potato, Tomato, Arecanut, Cocunut, Spices and Coffee.

There are 594 tiny units which are engaged in job-working, repairing and servicing.  This amounts to 14% of the total units registered.  Still there is a very good scope for promotion of such units in all taluks.

About 30% of the total Geographical area is forest and much attention will have to by given to protect forest so that ecology and environment is protected.  In addition to promoting few industries based on forest produce like soap nut power, packaging materials, Tourism related activities will have to be emphasised.

About 545 Tiny and SSI units are engineering industries i.e. about 10% of the total units are engaged in the manufacturing agricultural implements, coffee processing machineries and fabrication works.

As far as large & medium scale industries are concerned. There is only one large scale industry namely M/s Kudremuch Iron Ore Company Limited, Mudigere taluk.  It is a mining industry and has not contributed much to the industrial development of the district.  Most of the equipments, spares and components are imported.  Thus scope for promotion of ancillary units is less. This industry has given employment  to about 1653 persons.  There is one medium scale Industry by name M/S Vignyan industrial limited, a subsidary of M.S B.E.M.L., K.G.F.  This unit is manufacturing steel castings. This unit has given employment to about 261 persons.

As far as Artisans are concerned there are about 11285 different kinds of artisans.  The imprtant crafts are Bamboo, Carpentery, Blakdmimth and Weaving.  There are 395 handlooms and 5 powerlooms.  Hamgloom sector has given employment to about 790 persons and powerloom to about 10 persons.

As far as industrial infrastructure like industrial area and industrial estates are concerned, the district's only industrial area is located near Amble village about 7 kms. from the city.  Karnataka Industrial Area Development Board has acquired about 145 acres, out of which 55 acres have been developed with infrastructural facilities like roads, drainages and water supply.  Industrial lands from quarter acre to six acres are available for allotment.

There are two industrial estates located at Chikmagalur and Birur of Kadur taluk.  The total area of the Chikmagalur industrial estate is 13.20 acres out of which 10 acres have been fully developed and allotted.  There are 28 sheds and 23 plots.  All are allotted.  Karnataka Small Scale Industries Development Corporation is developing 3.20 acres in second phase.  The important industries are General Engineering, Copper Sulphate, Mosaic Tiles, Tyre Retreading, Note Books, Bakaery products, Coffee Curing works, Poultry feeds, Soap nut powder and wire nails etc., The total area of Birur industrial Estate is 10 acres.  There are 14 sheds and 17 plots.  The important industries are Coir inds., GLS lamps, Cement pipes, Tyre retreading, Mosaic tails and tread rubber.

As far as the Railways are concerned only two talukas viz., Kadur and Tarikere taluka have railway lines.  The district head quarters is not connected by Rail.  This is a major infrastructure bottle neck preventing the economic development of the district.  Thus the pace of work of Kadur-Sakaleshpur railway line via Chikmagalur will have to be speeded up.

In malnad district with inadequate railway facilities, road transport has a crucial role to play in the industrial development.  Most of the existing roads need proper maintenance.



A. 1) Details of Small Scale Industries as on 31-3-2001

                Units                                    No. of Units                     4327

                Investment                          Rs. In lakhs                     5878.44

                Employment                        Nos.                                 17365

    2) Category- wise details of Small Scale Industries Registered in Chikmagalur district as on


Sl. No. Category No. of Units Investment  Rs. in Lakhs Employment (Nos.)
1 Food and agro based Industries 529 1733.890 3173
2 Chemical and Chemical based Industries 292 250.796 1250
3 General Engineering 454 436 1995
4 Wood & Wood based Industries 835 338.884 2690
5 Textiles and Graments 411 439.257 1388
6 Leather and leather products 115 114.018 292
7 Printing and book binding 182 2669.652 726
8 Job working/repairs and servicing 594 773.498 1896
9 Rubber and rubber products 79 206.001 271
10 Electrical and Electronics 152 154.760 474
11 Automobiles 51 61.946 111
12 Ferrous and non ferrous 19 25.622 97
13 Plastics 19 26.310 82
14 Glass and caramics 36 171.806 556
15 Misecellaneous 559 878.918 2356
  Total 4327 5878.440 17365

B.  Large Scale Industries:-

Name of Industry M/S  Kudremuch Iron Ore Company Limited Kudremuch
Year of Establishment 1976
I  Land and building Rs. 103.6
II Plant and Machinery Ts. 6976 crores
Employment 1653 numbers
Export Japan, Iran, China, Australia, Taiwan

C. Medium Scale Industries:-

Name of the Industry M/S Vignan Industries limited, Tarikere
Production Steel castings
Investment Rs. 462 lakhs
Employment 257 numbers

D. Industrial Estates:-

1. Chikmagalur Industrial Total area 13.20 acres
    estate, K.M road Number of sheds - 28
    Chikmagalur Number of plots - 23
    Important Industries General engineering, Agricultural implements, Fabrication works, Copper Sulphate, Wire. Nails, Mosaic tiles, Tyre Retreading, Coffee curing, Note books, Soapnut Powder, Bakery products.
2. Birur industrial estate, Total area - 10 acrres
    Birur, Kadur Taluk Number of Sheds -  14
  Number of plots - 17
    Important Industries Mosaic tiles, Coir Industries, GLS lamps, Tyre retreading, Tread rubber, Cement popes etc.,


Category No. of Units
Food and Agro based inds., 529
Chemical and Chemical based inds., 292
General Engineering 454
Wood and Wood based insd., 835
Textile and Garments 411
Leather and Leather products 115
Printing and Book-Bainding 182
Job work / Repairs and Service 594
Others 204
Electrical & Electronics 152
Miscellaneous 559
Total 4327



a) Natural Resources:-  Chikmagalur district is rich in Agriculture, Horticultural and Forest produce.  Chikmagalur district has an excellent agro-climatic condition which is conducive for the development of Industries based on Horticulture produce and other plantation crops.

b) Tourism Industry:Many parts of the district are tourist centres attracting national and international tourists.

c) Reputed Technical Institutions / Research Institutions:-  Chikmagalur district has an Engineering College of high repute in addition to polytechnic, Industrial Training Institutes, Departmental Training Institute and corporation bank self employment training institute.  Govt. of India has established a nationally renowned central coffee research institute at Balehonnur, N.R.Pura taluk, University of agriculture science has established a "Krishi vigyan Kendra" at Mudigere.  The University of Agricultural Sciences has established a Horticulture college which offers four year degree course.

d) Strong Banking Network:-  Chikmagalur district has fairly a good banking network, the per branch (CB's & RRB's ) population works out to 7600 which is better compared to state average of 10135.  The district has a CD radio of 121% which is better than the state average.

Chikmagalur district with Human resources development Index of 0.524 is above the state index of 0.470 and National Index of 0.433.

e) Eco friendly Industries:- Chikmagalur district is an ideal district for ecofriendly industries.

f) Industrial area and Industrial Estate:-  There is an industriL area near Amble village, about 7 kms from Chikmagalur town with infrastructural facilities.  Also, there are two industrial estates located at Chikmagalur and Birur of Kadur taluk.


a) Lack of Enterpreneurship.                                                                                                                         

b)Poor infrastructural facilities like:-                                                                         

1) Chikmagalur city is not connected by rail which is a major infrastructure bottleneck which is preventing economic and Industrial development of the district.                                                                              

2) The status of the existing roads is not good.                                                                                        

3)  No cold storage.

c) Geographically more than 50% of the district comprises of hilly region.


1.    Scope for agro and food based Industries.

2.    Scope for Tourism Industries.

3.    Scope for Ecofreindly and IT Industry.

4.    Goof scope for Horticulture and Bio technology Industry.

5.    A strong Banking network is available in the district.

6.    The presence of technical institutes, training institutes and research Institutes.


1.    The Industrialization of the district may affect ecology and environment of the district.

2.    Water pollution and air pollution may increase.


Based on the resources available (both material & men ), considering the demand for various good and services and keeping in mind the present Industrial scenario, an "Industrial development plan 2001-2005" has been designed.

During the plan period of 2001-2005, it is proposed to promote 1731 number of tiny and small scale industrial units.  The proposed investment is around Rs.5027.00 lakhs. This would create employment opportunities to about 9840 persons. It is proposed to treat "Agro-based sector and Tourism sector" as core sectors.  Creating additional infrastructures like Mini Tool Room and Training centre, Bio-tech park, Science and Technology Entrepreneurs Park (STEP) in association with the Engineering College- AIT and Software Technology Park will definityly help the prospective entrepreneurs in providing common facilities and technical inputs. During the plan period it is proposed to promote 507 agro-based industries.  The proposed investment is around Rs. 1665.00 lakhs with an employment potential for 2861 persons.  Chikmagalur district is rich in agricultural and horticultural resources like Paddy, Ragi, Jowar, Sugarcane, Potato, Tomato, Mango, Banana, Jackfruit, Coconut, Arecanut and Coffee.  These raw agricultural and horticultural produce will have to be converted into value added products.  The proposed industries have been suggested based on the above raw materials.  It is also planned to involve Central Food Technological Research Institue, University of Agriculture Sciences and Karnataka Council for Technological Upgradation for improved productivity of the existing industries as well as for starting new industries. 

It is proposed  to promote 310 tiny service and job-work units.  The proposed investment is around Rs. 379.50 lakhs with an employment potential for 625 persons.  District Industries Centre is planning to provide escort service to the trainees who have been trained by Artisan Training Institute, District Industrial Training Centre, Corporation Bank Self-employment training institute and other training institutes. Chikmagalur district has rich forest wealth. It is proposed to promote 181 wood based industries with an investment of Rs.200.00 lakhs which will create employment opportunities to about 1055 persons. Coffee processing machineries, Agriculture Implements and Equipments are in great demand in addition to General Fabrication work.  Hence it is planned to promote137 General engineering Industries with an investment of around Rs. 445.00 lakhs, which will create employment opportunities to about 716 persons. Also during the plan period Textile and Garment units, Leather products, Chemical Industries, Auto-Engineering units, Printing and Stationary units, Rubber and Plastic based industries, Glass and Ceramic industries would be promoted.Because of the absence of more number of Medium and Large scale Industries, the district lacks in industrial climate.  Hence it is essential to promote few Medium and Large scale industries by inviting established industrial houses and providing all necessary assistance.The proposed tiny and small scale industries for 2001-2005 and other details are shown in detail from page no. 28 to page no. 64.


Artisans form a sizeable segment of the workforce.  The artisans are spread over the district and though they are engaged in giving life to the lifeless their socioeconomic conditions are not satisfactory.

In rural economy besides agriculture, artisan based industries have the largest employment and production potential.  They provide traditional services to satisfy basic needs through carpentry, pottery, weaving, smithy and tailoring etc.,

The artisan sector is suffering due to stagnate due to stagnate technology, non availability of raw material and finance, exploitation by middlemen, lack of marketing facilities etc., In out district, there are about 11295 artisans. The major categories are Carpenters, Black smiths, Matweavers.  The major concentration of artisans is found in Tarikere, Kadur, Mudugere and Chikmagalur.

The Deputy Director (KVI) Zilla Panchayath has plans to implement  important programmes like supply of imparting skill and Upgradation, construction of living cum worksheds, providing seed/margin money, conducting Seminars, assistance to industrial co-operative etc.  The taluk-wise & activity-wise planned projection are shown from page no. 66 to page no. 70.


1. Resources Based Industries :- 

Sl No     Item  Sl No   Item
1 Juice & Jam  32 Coir Defibering
2 Tomato ketchup 33 Salted and processed ground nuts
3 Mineral water  34 Handmade paper frjom paddy straw/coffee husk
4 Pickles and chutneys  35 Granite polishing
5 Banana chips/Potato chips  36 Modern Rice Mill
6 Fruit bar and toffees  37 Vermicelli
7 Jack fruit products (canned jack fruit, chips) 38 Rice bran oil
8 Banana powder  39 Coffee roasting & grinding
9 Tutee fruity 40 Carbonated coffee beverages 
10 Beaten rice  41 Agrabathi
11 Ground and processed spices 42 Dehydrated vegetables
12 Scented supari 43 Tamarind powder / Concetrate
13 Areca nut leaf plates and cups 44 Ayurvedic Medicines / Medicines / Herbal Cosmetics
14 Wooden furnitures 45 Soapnut Powder
15 Wooden doors and Windows 46 Stone polishing
16 Ragi Weaning food 47 Masala Powder
17 Briquetted fuel from coffee husk/ Paddy Husk 48 Milk Products
18 Flour Mill 49 Table moulded bricks
19 Dessicated coconut powder 50 Biotech Industries
20 Coconut Oil 51 Corrugated Boxes and Packing cases
21 Coconut shell powder 52 Energy Food
22 Oleoresins from chilies, ginger etc. 53 Wooden Sports Items
23 Poultry and cattle feed 54 Tooth Powder from Paddy Husk
24 Floriculture 55 Gums and resins
25 Plywood and Blockboard 56 Bamboo Splints
26 Collection and processing of Forest Products 57 Khandasari sugar
27 Wooden and Electrical Accesories 58 Bone meal
28 Honey Processing  59 Edible oil based on Groundnut, Sunflower etc.,
29 Mushroom Cultivation and processing  60 Coffee Hulling
30 Stone Crushing 61 Burnt lime
31 Rubberised coir products 62 Papad making
63 Varmi Compost / Organic mansure

II Demand Based Industries:-

1 Bakery products 44 Readymade garments
2 Confectionery 45 Destoning of foods grains 
3 Ice cream 46 Dusters and sprayers 
4 Iodised Salt 47 Rolling shuetters 
5 Hosiery items 48 Builders hardware
6 Surgical bandage 49 Printing and book binding 
7 Plastic bangles 50 Domestic electrical and applaiance  
8 PVC pipes and fittings 51 PVC wires and Cables 
9 School bags 52 Electronics teaching aids 
10 GI buckets 53 Battery Eliminetor 
11 SS utensils 54 Files and files boards 
12 Barbed wire 55 Desk Dairies / Calenders
13 Agricultural impliments / general engg. Works 56 DeskTop Publishing  
14 Hatchery 57 Kum Kum / Bindi
15 Camphor tablets 58 TV repair and servicing 
16 Distilled water for Automobiles 59 Data processing / offset
17 Phenyle 60 Photo studio
18 Assembly of umbrella 61 Hawai Chappals
19 Steel furniture 62 Aerated Water
20 Emergency lamps 63 Cleaing powder / Detergent Powder
21 Agro service centre 64 PVC wleded articles
22 Cold storge 65 Disposable Syricles
23 Electroplating 66 Paper Napkins 
24 Rexin utility articles 67 Printing ink
25 Screen printing 68 Wak Coated Paper
26 Upholstery work 69 PVC footwear
27 Raincoats 70 Distemper
28 Automobile servicing and repairing  71 Redoxide Primer
29 Laundry 72 Concrete hollow blocks
30 Envelops 73 Paint varnish
31 Vulcanising  74 Neem Cake
32 Jute Bags  75 Wax candles
33 Inverters 76 Printing press
34 Voltage stabilizers  77 Bleaching Powder
35 Paper bags &  Envelops  78 Health Clubs
36 Blow moulded plastics goods  79 Miniature bulbs
37 Rigid PVC pipes 80 Control Panels
38 Exercise books & Registers etc 81 Software Development
39 Paper cups & plates 82 GLS lamps
40 Tyre retreading  83 Internet / Browising Center
41 Copper sulphate 84 Automobile body building
42 RCC spun pipes 85 Battery charging / Reconditioning
43 Poultry processeing 


In order to promote the potential industries as per the planned projections the following action needs to be taken.

1.    Entrepreneurs awareness Pkrogrammes.

To create awareness among the people, it is proposed to conduct the Entrepreneurs awareness programme in all potential places including some important colleges and technical institutions.  As a follow up action Entrepreneurs development programme will be organised and escort services will be provided.

2.    Industrial Seminars /  Workshops

It is proposed to conduct industrial seminars and workshops involving organisations like Karnataka Council for Technological Upgradation, Central Food Technological Research Institute, and Small Industries Service Institute and other departments.

3.    Cold Storage and Agro Complex

District Industries centre is planning to identify prospective entrepreneurs who can promote cold storage units which will help in value addition giving better value for agro products during off season.

4.    Kadur - Sakleshpur Railway Line

There is an urgent need for faster completion of Kadur - Sakleshpur Railway line which will help in total economic development of the district.

5.    Mini Tool Room and Training Centre

To provide professional  and technical skill to youngsters and to provide tooling support including consultancy services to industries, establishment of a mini tool room and training centre is necessary.

6.    Bio - Tech Park / Food processing Industrial Park

Chikmagalur district is rich in horticultural and agricultural resources and is an ideal place for establishment of Bio - tech park/ Food Processing Industrial Park.    

7.    Software Technology Park

A Software technology park can be promoted in Chikmagalur which will help young Engineers to start their own software industries using the facilities of the software technology park.

8.    Science and Technology Entrepreneur Park - (STEP-AIT)

A  Science and Technology Entrepreneur Park can promoted in association with Adhichunchanagiri Institute of Technology of Chikmagalur which helps prospective Engineers to start their own industries using the common facilities.

9.    Tourism Industry:-

It is proposed to promote tourism related activities including adventure / entertainment sports, amusement centres and golf club.

10.    Infrastructure

The important infrastructure facilities like providing better roads, supply of quality power will boost the economic development of the district.  To improve the power position micro / mini hydel power plants and wind mills may be promoted in our district.

11.    Technology Upgradation

The services of Karnataka Council for Technological Upgradation, Central Food Technological  Research Institute, Small Industries Service Institute and other organisations will be utilised for technology upgradation and value addition. 

12.    Eco - Friendly Industries

To protect the environmental and ecological beauty of the district, District Industries Centre will emphasis more on promoting eco-friendly industries.