Economy of Mangalore

Skyline of Mangalore

Industrial and commercial activities dominate Mangalore's economy. Since India places major restrictions on its own teak felling, a necessity are imports which include tropical timber from South-East Asia for furniture making. 75% of India's coffee exports and the bulk of its cashew nuts are handled by the port.^[1] Notaby from Kerala and many coastal areas, cashew nuts are brought. At nearby Puttur, The National Cashew research centre is present. Well known throughout India are Mangalore roof tiles. Used as roof in many parts of the country, the tiles are made from red clay and baked. Due to use of RCC roofs, this industry is in rapid decline. The fastest growing non metro (Indian city\town of population less than 1 million) in South India is Mangalore.^[2][3][4][5]

Mangalore is one of the biggest business center in Karnataka. One of the largest SEZ's in India, the ONGC - Mangalore Special Economic Zone is in Mangalore, which is currently the fastest growing non-metro in the south. But still, the population is very much controlled in Mangalore (It is the 4th most populated city in the state). The way in which the city is growing can be gauged by the fact that over 400 luxury cars were sold in Mangalore in 2014 alone. The total investment in the ONGC MSEZ is expected to cross 1000 billion. At least three IT SEZ'S are coming up in Mangalore with companies like TCS, Wipro, Lotus and others investing up to more than 30 billion and creating 67,000 jobs in Mangalore over the next three years. MRPL(Mangalore Refinery and Petrochemicals Limited), the only refinery in the state, which will soon get a Navaratna Status is in Mangalore. MCF(Mangalore Chemicals & Fertilizers), the only fertilizer factory in the state, is also situated in Mangalore. Mangalore is one among the only 5 cities in the country to have both a Major Port and an International Airport. There are over 20 Malls in Mangalore, the biggest of them being Lotus Mall, with a total built-up area of 12.7 lakh sq ft and a GLA of 9 lakh sq ft. Mangalore already has some of the tallest buildings in South India, with many more under construction. Mangalore is also attracting investment in the Hospitality sectors with companies like the Maurya and Leela Group investing in the region. Mangalore is well on course to be one of the most promising future metropolis.

With 1/5 of airport traffic international, Mangalore International Airport is one of the fastest growing airports in South India and tenth fastest growing in India, a gauge of the fact that Mangalore is growing at a frentic phase. As Bangalore International Airport will get its second runway only in 2014, the only airport in Karnataka to operate two runways is Mangalore International Airport.^[6]

Shopping Malls

Forum Fiza Mall

City Centre Mall

Replacing traditional shopping complexes, Mangalore's retail space has gone for a change with several malls being set up in the city, in recent times. There are multiple Malls in pipeline, and a few malls like Forum Fiza Mall, Bharath Mall are operational already.

Traditional Commerce and industry

Fishing

With the local diet maintaining a high proportion of fish, Mangalore has been maintained to this day, a fishing town, like how it developed. The produce of the fishing industry is exported around the region, which employs thousands of people. A fishing port is The Old Mangalore port, now.

Tile Industry

Although the tile industry has been in decline due to the predominance of concrete in modern construction, famous Mangalore tiles are exported to east Asia, Europe, Australia, Africa, and the Middle East.

Other Industries

Beedi, coffee and cashewnut industry, Mangalorean firms have had a major presence. A well-known cottage industry is Beedi rolling.

IT and IT enabled services

Mangalore was called Next BPO Boom Town, in a telecasted program, by India's leading business TV channel CNBC TV18.^[7]

Infosys Mangalore

Major information technology and outsourcing companies have established their presence in Mangalore.

Other than MNC's there are multiple notable IT firms in Mangalore.

Due to the quality education provided by the educational institutes in the city, it has also given birth to multiple IT startup companies. To over 15,000 IT professionals and more than 55 companies, Mangalore is home.^[9]

Soorya IT Park

Soorya IT Park

Soorya IT Park is located at Mudipu, 16 km from Mangalore city center. The park offers smart office space for IT/ITES companies. It is located beside Infosys Mangalore campus with 2.4 lakh square feet. Currently there is one company functioning from the IT Park.

Core sector

The Kudremukh Iron Ore Company in Mangalore

Mangalore Chemicals and Fertilizers Ltd. (MCF), Kudremukh Iron Ore Company Ltd. (KIOCL), Mangalore Refinery and Petrochemicals Ltd. (MRPL), BASF, ELF GAS are the major industries in Mangalore. Several industries are also harbored at The Yeyyadi Industrial area.^[10]

At the Mangalore Special Economic Zone, in a new 15 million tonne refinery, petrochemical plant and power and LNG plants, The Oil and Natural Gas Corporation(ONGC) plans to invest over Rs. 35,000 crore. Of the country, this will be the first Petroleum, Chemicals, Petrochemicals Investment Region (PCPIR).^[11]

To the automobile leaf spring industry, Mangalore is home. Canara Springs was the brand name under which Canara Workshops Ltd started production in 1950, and Lamina was the brand name under which Lamina Suspension Products Ltd started production in 1976. To produce leaf springs, various small-scale manufacturers have set up in the industrial area at Baikampady, thereafter. Because of some of the smaller units shutting down there has been a lot of consolidation over the period. Producing about 1,000 metric tonnes of leaf springs per month, there are currently six or seven units. Of South India, almost entirely to the replacement or after market, they cater.

Banking and finance

Two of the nineteen banks nationalised during the first half of the 20th century were established in Mangalore.

Karnataka Bank was one of the largest banks not taken over by the Government. In addition to these, two banks were established in nearby towns. Corporation Bank was founded in Udupi by Late Khan Bahadur Haji Abdulla Haji Kasim Saheb Bahadur in 1906, and Syndicate Bank was co-founded in Manipal by Dr. T M A Pai, Sri Upendra Ananth Pai, and the Mangalorean Sri V S Kudva in 1924.

Fishing in Mukka, near Mangalore

These banks are considered quality institutions across the country – the national character taken on with nationalisation has been combined with the culture and quality of service inculcated by the founders. Before nationalisation, these banks were stewarded by very efficient and competent teams of managers, predominantly Mangaloreans. During this tremendous growth phase, these banks spawned a whole generation of bankers from Mangalore across these firms from the top to bottom. A large proportion of the Konkani, Bunt and Brahmin community from Mangalore were at one point employed by these banks. While Karnataka Bank and Corporation Bank are still headquartered in Mangalore, Vijaya Bank and Canara Bank are headquartered in Bangalore and Syndicate Bank is headquartered in Manipal. Even to date, a large proportion of employees at all levels in these banks are of Mangalorean origin.

The Mangalore Stock Exchange (MgSE) was incorporated on 31 July 1984 as a public limited company. The company was granted recognition as a stock exchange on September 9, 1985.^[12] It was de-recognised by the SEBI on 31 August 2004.^[13][14] Appeals by the Stock Exchange to overrule this order have been subsequently rejected on 2 November 2005 and 4 October 2006.^[15]

Special Economic Zones

The following Special Economic Zones(SEZs) to be located in and around Mangalore have been approved by Board of Approval, Government Of India & Under establishment.^[16][17]

Health Care Services

References