Infrastructure Development in Chennai Automotive Components Industry Cluster

By : E. Bhaskaran

Page No: 83-96

Abstract
Chennai is nicknamed the ‘Detroit of Asia’ due to the presence of major automobile manufacturing units and allied industries around the city. The infrastructure of Ambattur, Thirumudivakkam and Thirumalisai Industrial Estates were required to be upgraded, and they formed the Chennai Auto Ancillary Industrial Infrastructure Upgradation Company (CAAIIUC) for upgradation of the infrastructure of these three industrial estates. The CAAIIUC got funds under the Industrial Infrastructure Upgradation Scheme (IIUS), DPIIT, Government of India and developed these three industrial estates, and utilized physical infrastructure and centralized facilities under the Industrial Infrastructure Upgradation Scheme of the Government of India.
The objective was to perform a qualitative analysis of the CAAIIUC before and after the implementation of the IIUS Scheme. Qualitative data was collected from 100 industries using a questionnaire and analyzing the responses using Reliability Analysis, Descriptive Analysis, Factor Analysis, Correlation Analysis and Confirmatory Factory Analysis. Reliability Analysis proved that the data is excellent. Confirmatory Factory Analysis proved that the parameters on infrastructure, technology, procurement, production and marketing interrelationships are significant. There is a high degree of linkage between infrastructure and the other interrelationships like procurement, technology, production and marketing. Due to the implementation of the cluster development approach, the selling price of auto components of individual enterprises will decrease and they will be able to compete in the global market. The costs of marketing, infrastructure development, human resources, raw material and production will decrease and there will be an increase in the profit/turnover.

Author :
E. Bhaskaran
Joint Director (Engineering), Department of Industries and Commerce, Government of Tamil Nadu, Guindy, Chennai, Tamil Nadu, India.
 

DOI: https://doi.org/10.32381/PROD.2022.63.01.7