Industrial In-house R&D in Tamil Nadu – A Note 

Tamil Nadu is one of the leading industrialized states in the country. The state has 1366 joint stock companies and has an industrial turnover of Rs 141095.8 crores for the year 2005-06 as per the data in capitaline database. The following is a brief analysis of the R&D investment trends among the Tamil Nadu based companies. Tamil Nadu has been strong in automobiles and auto components traditionally.                                                                         

Top 10 Industry Sectors in Tamil Nadu on Turnover 

Industry

Net sales

R&D Expenditure

(Rs in crores)

(Rs in crores)

Automobiles

17654.59

193.64

Trading

16982.1

0.14

Refineries

14240.73

3.24

Textiles

9403.35

9.92

Auto Ancillaries

7872.35

74.97

Computers

4550.44

61.84

Sugar

4527

8.11

Cement

3639.65

10.05

Fertilizers

3399

3.21

Power Generation And Supply

3297.84

5.19

 Top 10 Industry Sectors in Tamil Nadu on R&D Spend 

Industry

Net sales

R&D Expenditure

(Rs in crores)

(Rs in crores)

Automobiles

17654.59

193.64

Pharmaceuticals

1983.86

90.43

Auto Ancillaries

7872.35

74.97

Computers

4550.44

61.84

Tyres

3261.48

13.67

Cement

3639.65

10.05

Textiles

9403.35

9.92

Sugar

4527

8.11

Electric Equipment

1187.59

7.52

Cycles And Accessories

1460.94

5.24

 An analysis of the sector wise R&D in Tamil Nadu indicates that the Automobile sector stands first in R&D expenditure. An automobile industry is the leading sector in the state and contributes 12.51% of the total industrial turnover. With the total turnover from Automobiles being Rs. 17654.59 crores, Rs 193.64 crores of it is spend on R&D. It indicates that the R&D intensity in Automobiles in Tamil Nadu is 1.1%. 

Pharmaceutical sector is a minor sector in the state. Pharmaceuticals contribute only 1.41% to the total industrial turnover of the state. With the total turnover from Pharmaceuticals being Rs. 1983.86 crores, Rs 90.43 crores of it is spend on R&D. It indicates that the R&D intensity in Pharmaceuticals in Tamil Nadu is 4.56%. 

Auto Ancillaries, which is a supporting industry for the automobile industry ranks third in R&D in Tamil Nadu. The total turnover from this industry is about Rs.7872.35 crores. It accounts for 5.58% of the total industrial turnover of the state. The sector invests Rs.74.97 crores on research, and the R&D intensity is 0.95% 

Computers Industry comprising both software and hardware, which is the backbone for the emerging Information Technology is the fourth largest spender in R&D in Tamil Nadu.  The total turnover of the industry amounts to Rs.4550.44 crores of which Rs.61.84 crores is spent on R&D. the R&D intensity of the industry accounts to 1.36%. 

Tyres, Cement, Textiles, Sugar and Electric Equipment are other sectors, which promote R&D in the state significantly. Cycles & Accessories, Power Generation & Supply, Compressors/Drilling Equipment, Refineries, Fertilizers, Ferro Alloys and Rubber are other sectors that have a minor contribution to the R&D in the state.


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