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Vizianagaram: Industry reeling under pressure

Jute mills face tough competition from plastic industry; ferro alloy units struggle to overcome operational losses

Vizianagaram: Industry reeling under pressure
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Vizianagaram: Industry reeling under pressure

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Vizianagaram: One of the backward districts in Andhra Pradesh, is home to some major and mega industries. It has around 38 large and mega industries, and 4,288 micro, small and medium enterprises (MSMEs). Of the total major and mega industries, around 25 are minerals, metals and ferro alloys based industries, while two are jute mills. The district also has one sea food exporter and a few agri products units like cashew processing plants. Two sugar industries along with a major pharmaceutical manufacturing facility, Mylan, are also operating from this district.

Unfortunately, jute mills are facing severe crisis as they have competition from the plastic industry. Polythene bags became a threat to the jute mills. On the other hand, non-availability of raw material for jute mills is the primary cause for closure of these mills. All these consequences have been forcing those units to shut down.

Nellimarla Jute Mill was once the biggest unit in the State with more than 3,500 workforce for the past few years. However, it is now running with less than 2,000 workers. Other units like Uma Jute Mills, Aruna Jute Mills and Andhra Fibers, Gopalakrishna Jute and Twine Mills have closed down shutters due to operational losses.

The ferro alloy units, which have been providing a significant number of jobs here for the past few decades, too, could not sustain. Ferro Alloy Corporation of India (FACOR) at Garividi, a large unit that has been operational in the district with more than 2,500 workforce for the past few years, is now faced with several operational problems.

Even Jindal Stainless at Kothavalasa has announced layoffs and Andhra Ferro Alloys was closed down. Some other small scale ferro units in Bobbili Growth Centre are struggling to recover from operational losses.

Koppara Gandhi

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