The growth Kottayam has achieved in the industrial sector during the past few years, is considerable. Now there are 11 large and medium small scale industries, 12 mini industrial estates and 12000 small scale industrial units.

Significant growth has been achieved in the agro based industrial sector. The increasing output in Rubber Production and the advent of modern processing techniques, has resulted in the establishment of Rubber based industrial units like Latex, Crepe Rubber and Latex diversifying into items such as M.C. Sheets, footwear, etc. There is a major industrial estate for Rubber and Plastics at Changanassery. The Travancore Cement factory, which manufactures the unique white cement, is located at Nattakom, not far from the town.

The district has a rich forest wealth with good availability of soft wood and other varieties of timber. As a result many industries like plywood, packing cases, splints and veneers, furniture,..etc are thriving. The Hindustan Paper Corporation has set up a factory at Velloor in Vaikom Taluk, for the production of News Print . The coir industry in Kottayam district is more or less confined to Vaikom Taluk.

Rubber is the most important agricultural product in the district. As such there is abundant scope for large number of rubber based units in the district. As of now, about 15% of the SSI units are rubber based. But about 75% of these units are concentrated on 5 items only, as against about 35000 products possible with rubber. With the establishment of the proposed tyre factory viz. Palazhi tyres in the co-operative sector, the rubber based industry is likely to be boosted up. Similarly there is also scope for more wood based industries, engineering industries and garments units. There are also some engineering industries, garments units and traditional industries such as coir and hand loom in the district.

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Cottage and village industries are promoted mainly by the Khadi and village Industries Commission KVIC/KVIB and Khadi and village Industries Board (KVIB). The KVIB has an office at Kottayam. There are about 94 industries, for which assistance is given by KVIB. These industries are labour intensive and involve less capital. Apart from KVIC and KVIB, the village and cottage industries are also promoted under Government sponsored programs like IRDP, PMRY, etc.

As on 31.3.1996, there were 15009 registered Small Scale Industries (SSI) units in the district. Of this, 1730 were registered during 1995-96. The growth of SSI in the district had been marginal and the number of units registered during 1993-94, 1994-95 and 1995-96 were 1569, 1655 and 1730, respectively.

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The most important feature of the district is the availability of natural rubber in plenty. It is estimated that Kottayam district alone accounts for 25% of the total production of natural rubber in the country. Rubber being a major raw material for about 35000 different types of products, can help in setting up of more rubber based industries. Moreover, the location of Rubber Board and Rubber Research Institute of India (RRII) are the added advantages for the development of this industry.

At present, there are about 2000 rubber based industries in the district. Although, it accounts for the largest share in the total industries, it could be much more, considering the availability of the raw material. There is a proposal to set up a large type factory at Pala, which can enhance industrial activity in the district

Wood is another major raw material which is available in the district. A variety of quality timbers are available locally or from the neighbouring district. Recently, the processed rubber wood has been gaining popularity for furniture making, interior decorations and even as construction material. There is a tremendous potential for establishing rubber wood processing units. There are about 1300 wood based industries in the district.

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Agriculture is the major economic activity in the district. About 50% of the net domestic product of the district is contributed by agriculture and other primary activities. Processing of these products can be a major industrial activity in the district. Some of the major agriculture products available are rubber coconut, vegetable, paddy, spices, pineapple, pepper, ginger, milk, meat, fish, etc.

Kerala is a consumer state. Most of the items required are being imported from the neighbouring states. The situation in Kottayam is not different. This being the situation, there is a ready market for most of the products that can be produced in Kottayam. A survey conducted by KITCO in 1994 revealed that about 64% of the industrial products, have good market within state itself.

The demand based industries possible in the district are garment making, plastic product, automobile products, metal and non metal industrial products, food and beverages, paper and printing units, building/construction materials, leather goods, repair units, etc. It is observed that there is a high demand for consumer non durable articles.

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There is also good potential for skill based industries. This is basically due to the high level of educational and technical qualifications among the people. There is an Engineering college, 2 polytechnics, 3 junior technical schools and 6 technical high schools which impart technical skills to the people. Apart from these, the institutions in the other districts and the states are also being utilised by the people of the district. Agencies like Rubber Board, Malanad Development Society, Changanassery Social Service Society, Science and Technology Entrepreneurship Development Project, also help in improving the skills of the unemployed youth.

The Skill based industries like electrical and electronic industries, general engineering, mechanical workshops, repairing units, construction activities, etc. have good potential in the district.

By the virtue of being the largest natural rubber producing district in the country, Kottayam district has the distinct advantage of promoting rubber based industries. The statistics of the existing industries also show that about 15% of the existing units are based on rubber.

There are two types of industries possible in the rubber sector. One is the processing industry with rubber wood or latex. Other is the manufacturing industry based on latex or dry rubber. The former include centrifugal factories, creaming of rubber and crumb rubber industry. These are capital intensive industries. The World Bank project for rubber development envisages financing of such industries also. Under the manufacturing industries about 35000 products are possible. They are of two types based on the type of raw material used for it. Some are based on latex which include products like gloves, balloons, latex foam, rubber band, etc. and others are based on dry rubber sheets and the products include manufacturing of tyres and tubes, automobile parts, erasers, moulded goods, etc.

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The exact number of the artisan and other decentralised units in the district is not available. But it is understood, that there exist a number of artisan units like black smithy, carpentry and gold smithy in the district. A majority of these units have availed of credit and subsidy assistance under IRDP, KVIC/KVIB programs or SC/ST action plan. It is estimated that there is scope to establish about 500 units under this sector every year.

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