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Wednesday, April 21, 2010

Why I think that Vellore will become the next auto hub of India??

If you’re as old as I am (44 to be precise), you know how much Indian automobile sector has changed. As kids, we were used seeing white ambassadors and next came Maruti 800. Gone are those days, there appears to be a new automobile coming out almost on a daily basis.

But what does this got to do in Vellore becoming a next auto hub of India? There have been few developments in the past few months and years and that will change the shape of Vellore, I bet on it.

First came the news that Bavina Electric car company setting up a shop in Ranipet to build cars and then came the news of VIT starting M. Tech program (VIT has B. Tech program also with with specialization in Automotive Engineering) in Automotive Engineering in partnership with Automotive Research Association of India (ARAI) where part of education is done at VIT and part at ARAI. Then comes the icing on the cake – A company called ‘Same Duetz-Fahr’ near Ranipet announced expansion plans to develop research and development (R & D) wing to export auto components. Lastly, Government also declared the Chennai – Bangalore highway (Ranipet is on the highway) as the ‘Industrial Corridor’

Automobile industry is such a unique one in itself because of its front end and back end support industries that come along. Automobile is such a complex machine that it requires an innumerable number of parts that are supplied by many different companies and they see convenience in locating their companies closer to the automobile manufacturing plants. What it means is this: Expect lot more ancillary companies to move to this area. Arcellore Mittal has a steel plant in Ranipet already. Unrelated but support industries such as good hotels (check out the newly opened business hotel ‘Pride Biznotel’ in Ranipet) and restaurants also crop up nearby. All this will bring employment and tax revenues to Vellore.

Having an academic institute such as VIT offering such a specialized course with related industries in the vicinity of 25 KM, it is a foregone conclusion that it will lead to more partnerships in the future and that will encourage more companies to move closer to Vellore. Recently when I told in one of my emails to a scientist at CSIR (Council for Scientific and Industrial Research) that I am from the city of Vellore, he referred to Vellore as a ‘City of Innovation’ in an obvious reference to VIT’s innovation oriented approach.

In the US, automobile industry is only next to Insurance and Housing Industrie. They say that automobile manufacturing plant could easily have 200 front and back end industries and that should give you an idea why I am so pumped about the ‘Auto Hub’ thing. Did I convince you now? What do you think of Vellore? Hot and dusty? It is more than that. Remember as that researcher said, Vellore is a 'City of Innovation'

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