FMCG And Durable Goods Cluster In Hubballi-Dharwad Region: CM Bommai To Ink MoUs On Oct 28 With 10 To 15 Leading Firms

FMCG And Durable Goods Cluster In Hubballi-Dharwad Region: CM Bommai To Ink MoUs On Oct 28 With 10 To 15 Leading Firms

by Swarajya Staff - Wednesday, October 26, 2022 12:38 PM IST
FMCG And Durable Goods Cluster In Hubballi-Dharwad Region: CM Bommai To Ink MoUs On Oct 28 With 10 To 15 Leading Firms Hubballi Durable Goods Cluster (Pic Via Aequs Website)

In a significant boost to industrialisation in the state's northern regions, Karnataka Chief Minister Basavaraj Bommai will inaugurate the fast-moving consumer goods (FMCG) cluster park established in Hubballi-Dharwad region on October 28 (Friday).

The CM will also ink MoUs (memorandum of understanding) with 10 to 15 large FMCG companies to set up production units in the industrial cluster.

The cluster is targeted to generate around five lakh direct and indirect jobs. It is likely to give a boost to the economic development of the northern region of the state.

In 2019, then chief minister BS Yediyurappa announced the setting up of the FMCG cluster in Dharwad during the 'Invest Karnataka-Hubballi' event

Hubballi-Dharwad West MLA Arvind Bellad, who, along with former CM and senior BJP leader Jagadish Shettar played a pivotal role in conceptualising and driving the initiative FMCG cluster, said that it is being set up keeping in mind the fundamentals of 'Atmanirbhar Bharat'.

"The government has taken an initiative to develop a first-of-its-kind FMCG park in the Hubbali-Dharwad. The district connects with 5 of 8 metropolitans in India, within a radius of 1,000km, through national highways, and has direct air connectivity to major cities. With an existing logistics hub, skilled labour, good engineering colleges and a thriving social infrastructure, region is an ideal location for the FMCG park," Bellad added.

The cluster will evolve on the concept of shared facilities and knowledge to improve productivity by minimising overhead costs. He elaborated that the companies investing in the cluster would start production in the next 18-24 months.

The government had set up a FMCG Vision Group for Karnataka to prepare a roadmap for developing a FMCG cluster in Dharwad.

The chairman of the FMCG Vision Group and joint managing director of Jyothy Labs Ltd Ullas Kamath, had submitted the Vision Document ‘Transform Hubballi-Dharwad: Vision 2020-2025’’ to the then large and small-scale industries minister Jagadish Shettar in June 2020.

The vision group had proposed that FMCG Cluster development be taken up in three phases, with each phase comprising of investment of Rs 2500 crore from 50 FMCG companies (an average investment of Rs 50 crore each).

Each phase will generate 50,000 jobs, with 80% of jobs reserved for the domiciles, and 50% for women. Each phase is expected to occupy an area of around 500 acres.

To facilitate the setting up of FMCG and consumer durable cluster, the BJP government plans to acquire close to 5,000 acres between Dharwad and Kittur next to the NH-48, under the Bengaluru-Mumbai Industrial Corridor (BMIC) project.

Karnataka Industrial Area Development Board has already acquired nearly 3,000 acres at Gamanagatti, Ittigatti, Mummigatti, Belur and Kotur village limits. The government is also likely to give a 20% subsidy up to a maximum of Rs 25 crore for the units operating in the cluster. A performance-linked incentive of 3% of annual turnover for five years is also in the offing.

Consumer Durable Cluster

The state government is also planning to develop Hubballi-Dharwad industrial region as durable consumer goods cluster.

Aequs Infra has already been allotted 358 acres near Ittigatti and Gamangatti, and the firm has proposed to invest Rs 3,524 crore. The company has already set up and operating the toy cluster in Koppal

To develop the cluster, a consortium of FMCG companies will invest close to Rs 7,500 crore in three phases. Once operational, the industrial scenario of the region will likely change, with hundreds of small and large industries coming up.

Spread over 400 acres, the Hubballi Durable Goods Cluster (HDC) will aim to be a fully integrated and self-sustaining ecosystem catering to the durable goods industry's manufacturing infrastructure requirements, the company said in a statement on Thursday (January 27).

"The cluster will offer co-located capabilities and seamless access to manufacturing infrastructure and solutions from product design to product realisation, and distribution and logistics to access to retailers and affiliates across the globe," the company said in an official statement.

It will consist of nearly 4.5 million sq ft of factory area and other facilities.

"Common facilities will include Centres for Warehouse and Logistics, Skill Development, Free Trade Zone and MSME and Vendor zone along with WTO, STP, Power and water distribution within the Campus, Common Multi Amenity center housing Occupational Health Center, Creche, Canteen, Backup power, Transport facility and Dorms & quarters for the staff and workers," the company said.

HDC aims to provide complete ease of doing business for consumer durable goods manufacturers at the cluster and will offer all manufacturing solutions at one go.

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