Mangalore - Economy

Economy

Mangalore's economy is dominated by the agricultural processing and port-related activities. The New Mangalore Port is India's ninth largest port, in terms of cargo handling. It handles 75 per cent of India's coffee exports and the bulk of its cashew nuts. During 2000–01, Mangalore generated a revenue of 33.47 crore (US$6.09 million) to the state. The city's major enterprises include Mangalore Chemicals and Fertilizers Ltd. (MCF), Kudremukh Iron Ore Company Ltd. (KIOCL), Mangalore Refinery and Petrochemicals Ltd. (MRPL), BASF, Bharati Shipyard Limited and Total Oil India Limited (ELF Gas).

The leaf spring industry has an important presence in Mangalore, with Canara Workshops Ltd. and Lamina Suspension Products Ltd. in the city. The Baikampady and Yeyyadi Industrial areas harbour several small-scale industries. Imports through Mangalore harbour include crude oil, edible oil, LPG, and timber. The city along with Tuticorin is also one of two points for import of wood to South India.

Major information technology (IT) and outsourcing companies like Infosys, Wipro, and MphasiS BPO have established a presence in Mangalore. Plans to create three dedicated I.T. parks are underway, with two parks (Export Promotion Industrial park (EPIP) at Ganjimutt and Special Economic Zone (SEZ) near Mangalore University) currently under construction. A third IT SEZ is being proposed at Ganjimutt. Another IT SEZ, sponsored by the BA group, is under construction at Thumbe and spans 2 million square feet (180,000 m²).

The Oil and Natural Gas Corporation (ONGC) plans to invest over 35,000 crore (US$6.37 billion) in a new 15 million tonne refinery, petrochemical plant and power, as well as LNG plants at the Mangalore Special Economic Zone. Indian Strategic Petroleum Reserves Ltd, a special purpose vehicle under the Oil Industry Development Board, is developing strategic crude oil reserves in Mangalore and two other places in India. Out of the proposed 5 million metric tonnes per annum (MMTPA) storage, 1.5 MMTPA would be at Mangalore. According to an International edition of India Today (28 November – 4 December 2006), Mangalore is the fastest growing non-metro in South India.

Corporation Bank, Canara Bank, and Vijaya Bank were the three nationalised banks established in Mangalore during the first half of the 20th century. Karnataka Bank, founded in Mangalore, was one of the largest banks to have not been taken over by the Government. The Mangalore Catholic Co-operative Bank (MCC Bank) Ltd. and SCDCC Bank were the scheduled banks established in Mangalore.

The boat building and fishing industry have been core businesses in Mangalore for generations. The Old Mangalore Port is a fishing port located at Bunder in Mangalore, where a large number of mechanised boats anchor. The traffic at this port was 122,000 tonnes during the years 2003–04. The fishing industry employs thousands of people, their products being exported to around the region. Mangalorean firms have a major presence in the tile, beedi, coffee, and cashew nut industry, although the tile industry has declined due to concrete being preferred in modern construction. The Albuquerque tile factory in Mangalore is one of India's oldest red roof tile manufacturing factories. Cotton industries also flourish in Mangalore. The Ullal suburb of Mangalore produces hosiery and coir yarns, while beedi rolling is an important source of revenue to many in the city.