Introduction 1 Statistics and analysis: 2 - 4 Households 2 Shops 3 Banks 4 Industries in karkala 5 - 6 Tourism in karkala 7 Land rates in karkala 8 Issues and inferences 9 Karkala is a semi-urban township, which is the headquarters of Karkala Taluk in the Udupi district of Karnataka. The name of the town is derived from Kari-kal, meaning black stone in Tulu. Karkala is on the top of a granite bed that is about 300–500 ft thick. This is the reason why many stone industries have flourished in this region. The economy of Karkala is driven mainly by the cashew, stone and beedi industries. The temple economy is also a big contributor as it is one of the major junction for the religious tourists The festivals and rituals of the temple contribute to the peak and low periods of local businesses. Tourism is also another factor.

1. FORMAL ECONOMY
REPORT
KARKALA TOWN, KARKALA TALUK, UDUPI DISTRICT
BY,
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
SEMESTER VII | SECTION A

2. CONTENTS
TOPIC
1. Introduction 1
2. Statistics and analysis: 2 - 4
a. Households 2
b. Shops 3
c. Banks 4
3. Industries in karkala 5 - 6
4. Tourism in karkala 7
5. Land rates in karkala 8
5. Issues and inferences 9
PAGE
FORMAL ECONOMY
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Karkala

3. • Karkala is a semi-urban township, which is the headquarters of Karkala Taluk in the Udupi district of
Karnataka.
• The name of the town is derived from Kari-kal, meaning black stone in Tulu. Karkala is on the top of a
granite bed that is about 300–500 ft thick. This is the reason why many stone industries have flourished in
this region.
• The economy of Karkala is driven mainly by the cashew, stone and beedi industries.
• The temple economy is also a big contributor as it is one of the major junction for the religious tourists
• The festivals and rituals of the temple contribute to the peak and low periods of local businesses.
• Tourism is also another factor.
QUICK FACTS:
Coordinates: 13.2N 74.983E
District(s) : Udupi
State : Karnataka
Settled 1912
Population : 25,118 (2001)
Sex ratio: 1.11 (Male to female)
Official languages : Tulu, Kannada, Konkani
Time zone IST (UTC+5:30)
Area : 23.06 square kilometers (8.90 sq. mi)
Nearest Port city : Mangalore
Nearest Airport: Mangalore Airport
Nearest Railway Station : Udupi Station
TO MANGALORE
TO SHIMOGA
TO UDUPI
TO INDUSTRIAL AREA
STATE HIGHWAY
KARKALA CHIKMANGALURU
MANIPAL
MANGALORE
124 KM
60 KM
142 KM
35 KM
SHIMOGA
ABOUT …
1
FORMAL ECONOMY - INTRODUCTION
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Karkala

4. 63%
3%
13%
10%
7%
4%
Employment status
Employed Looking for a job.
Home maker Student
Works from home Retired
59%16%
4%
19%
2%
Holidays for employed
citizens
Sunday Saturday, Sunday Depends
No holidays Thursday, Friday
28%
34%
24%
14%
Monthly Income
<20,000 20,000 - 40,000
40,000 - 60,000 >60,000
36%
18%
29%
3%
4% 6% 4%
Criteria for maximum
expenditure per household
groceries transport Household Recreation
Movies Shopping Restaurant
38%
31%
18%
13%
Movies
karkala manipal udupi mangalore
56%
4%
12%
28%
Shopping
karkala manipal udupi mangalore
34%
27%
23%
16%
Restaurants
karkala manipal udupi mangalore
P
L
A
C
E
S
V
I
S
I
T
E
D
F
O
R
COMMENTS
1. Most of the citizens work within the Karkala Taluk.
2. Migration into Karkala:
• Happens mostly with labourers coming into the town for
construction work.
• Some bank emplyees have also migrated to Karkala.
• Keralites have purchased land here and are growning crops
like rubber, pineapple and arecanut due to the presence of
their respective industries in this region.
3. Migration out of Karkala:
• Students who go out of Karkala to study prefer working
outside.
• Currently, there are only 3 colleges in Karkala, namely:
Bhuvanendra college, SVT womens’ college and SGM college.
• There is no scope to study Medicine, Architecture, Law in
Karkala.
4. B.Comm. Is the predominantly chosen course for higher
education as there are plenty of family businesses in Karkala.
5. Scope for government jobs(courts, hospital, police staton,
lawyer, banks, doctors)
6. Civil engineers play the role of architects in the town.
COMMENTS:
1. After Sundays (when most shops on market road are
closed), people have most no. of holidays on Saturdays.
Hence, Saturdays may be the peak days of traffic.
COMMENTS:
1. Least expenditure on recreation activities indicates
that there are not many existing recreation
activities in Karkala.
A considerable number of people
travel to Inox, Manipal due to
better facilities.
Ramasamudra
lake, one of the few
places in Karkala for
recreational
activities has not
been maintained
enough to attract
many tourists.
Anakere lake, along with
Ramasamudra lake face
the problem of excessive
growth of Lotus roots,
Market road on Sundays gets very
congested due to on-street parking of
two-wheelers even though there is a
facility of underground parking
0
5
10
15
20
Travel…
Cosmetics
PetrolPump
Clothing
HardWare
Mechanic
Grocery
Bank
Jwellers
Hotels
Industry
Temple…
Bakery
Furniture
Government
BUSINESS
BUSINESS
People prefer
buying groceries
from Karkala and
branded items
from Mangalore
and Udupi.
Lack of parking
facilities near
Planet
Cinema,
Karkala leads
to congestion.
Residents who can afford to, often travel to
Manipal/Udupi for a variety of recreational
activities. Hence, the potential recreational spaces
in Karkala which have the ability to provide the
same experience at a lesser cost, should be
redeveloped and well maintained with the help of
government aid and active participation of the
people to promote social interaction.
2
FORMAL ECONOMY – HOUSEHOLD SURVEY
STATISTICS AND ANALYSIS
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Sample size: 100
Sample size: 100
Sample size: 76
Sample size: 100
Sample size: 96
Sample size: 100
Sample size: 100
As majority of
the people earn
between 20,000 -
60,000 per
month, they may
prefer more
economical local
recreational
activities such as
the
lakes/theatres
within karkalla.

5. 45%
4%4%
13%
34%
Typology
Groceries Clothing Electronics
Household Others
16%
84%
Have you taken loans to establish
the business?
yes, loans were taken no loans
29%
21%27%
2%
7%
3%
4%
7%
Where do you get your goods from?
Locally, from within Karkala Udupi
Mangalore Chikmanglur
Bangalore Moodbidri
79%
21%
Expansion of shop
YES NO
Sample size: 63
95%
34%
84% 87% 91%
0%
20%
40%
60%
80%
100%
Summer Monsoon Winter Spring Festival
Season
Sale period
SALE PERIOD
57%
6%
37%
Ownership status
RENT OWN GOVT.
COMMENTS:
1. There is lack of availability of branded goods in
karkalla, especially for clothing.
2. For this reason, citizens have to go to nearby towns
like Manipal/Udupi to shop.
3. Majority of shops are grocery stores that source
their goods locally.
COMMENTS:
1. Grocery items mostly sourced from withing
Karkala Taluk and surrounding areas like
Moodbidri and Udupi.
2. Clothes brought in from Bangalore/Mangalore.
COMMENTS
1. Absence of private sectors
2. Not many loans are taken as most of
the shops are either rented or too
small scale.
3. Some people prefer selling their
private property over taking loans with
interest rates.
1. Average working hours: 8 am – 8 pm.
2. General qualification of shop keepers- graduation(B.A ,PUC,
B.com)
3. Abharan Jewellers on Karkala-Hiriyadaka Road: One of the major
investments in the town.
4. Indira Gandhi market- the fish market which used to be open
along the streets is now a part of an enclosed complex and this
has helped in the maintenance , odor of the locality.
Most of the shops from
Ananthashayana temple to the
Bus stand (600 m stretch) are
family owned businesses.
GENERAL FACTS ABOUT COMMERTIAL SECTOR:
COMMENTS
1. Mostly shop owners selling clothes
and electronics are willing to expand
as there is lesser competiotion in the
Karkala market in those goods.
3
PREDOMINANTLY USED BANKS IN
KARKALA TOWN
Market road
FORMAL ECONOMY – SHOPS SURVEY
STATISTICS AND ANALYSIS
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Karkala
Sample size: 63
Sample size: 63
Sample size: 63

6. 23%
7%
23%
15%
8%
8%
8%
8%
0%
How many ATMs present?
Karkala co-operative service ICICI SBI
Canara Bank State Bank of Mysore HDFC
Allahbad Bank SBI mysore MCC
20
30
40
15
45
25
100 100 100
2
10
60
15
20
10
30 30 30
0
20
40
60
80
100
120
Karkala co-
operative
Syndicate
Bank
ICICI SBI Canara Bank State Bank
of Mysore
Allahbad
Bank
SBI Mysore MCC Bank
LOANAMOUNTINLAKHS
BANKS
Home loans
40
100
30 30
200
5
30
15 15
10
50
100
150
200
250
SBI Mysore HDFC Allahbad Bank SBI Mysore MCC Bank
LOANAMOUNTINLAKHS
BANKS
Business loans
15
20
15
20
5
15
30
10
5
10
15
20
25
30
35
Karkala co-
operative
Syndicate Bank Canara Bank SBI
PAYBACKTIMEINYEARS
BANKS
Loan pay-back time
COMMENTS:
1. Total number of ATMs present: 14 nos.
2. Total number of Banks: 10. nos.
3. Loan pay back times range from 1 – 30 years depending
on the type of loan.
• Business loans: Usually within 5 years.
• Home loans: Average within 30 years.
4
INTEREST RATES
SR. NO. BANK FIXED INTEREST RATE –
HOME LOANS
FIXED INTEREST RATE:
BUSINESS LOANS
1 ICICI 9.85% – 9.9% -
2 SYNDICATE BANK 10% -
3 SBI 9.7% 12.5 – 13%
4 HDFC 17 – 20%
5 CANARA BANK 10% 15%
6 MCC BANK 11.5% 13 – 14% (mortgage
loan)
7 ALLAHBAD BANK 9.85% -
Karkala co-operative service bank
BANKS ATMs
Axis bank ATM
Vijaya bank ATM
Canara Bank ATM
Corporation
Bank ATM
4
FORMAL ECONOMY – BANKS SURVEY
STATISTICS AND ANALYSIS
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Karkala

7. ATTUR CHURCH
St. Lawrence feat – January
CHATHURMUKHA BASADI
Once in every 12 years – February
SREE VENKATARAMANA
TEMPLE
Lakshadeepotsava – Nov- Dec
Rathotsava – April – may
Vishwaroopa Darshana – Octo-
nov
ANANTHASHAYANA TEMPLE
Ananthachathurdashi –
september
GOMATESHWARA STATUE
Mahamasthakabhishekam – once in 12
years – February .
RAMASAMUDRA LAKE
ANNEKARE LAKE
MANASTAMBHA OF HIRIYANGADI
PRAKASH HOTEL
SUHAG HOTEL
SWAGATH HOTEL
KATEEL INTERNATIONAL HOTEL
0
1
2
3
4
5
6
JANUARY
FEBUARY
MARCH
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
HOTELS IN KARKALA
- THESE TOURIST SPOTS
HAVE A POTENTIAL TO
DEVELOP THEIR
INFRASTRUCTURE,
CREATING AVENUES
FOR MORE FORMAL
ECONOMY AROUND
ITS VINICITY .
- MANTAINANCE,
CLEANLINESS ARE THE
KEY FACTORS TO BE
FOLLOWED AROUND
THESE TOURIST SPOTS
- THE TEMPLE
ECONOMY ALSO PLAYS
AN IMPORTANT ROLE,
FOR THE ECONOMY OF
THE CITY. HENCE,
PROVIDING MORE
OPTIONS OF SMALL
SCLAE SHOPS (
FLOWER, ETC.) NEAR
BY WOULD HELP THE
LOCAL BUSINESS.
DURING THE FESTIVAL
SEASON IN KARKALA.
(APRIL – MAY & NOV- DEC
). THE ECONOMY OF THE
CITY IS BOOSTED IN THE
FOLLOWING WAYS
- OFFERINGS MADE IN
THE TEMPLES
- HOTELS BEING
BOOKED
- FAIRS
- LOCAL BUSINESS
NOT ONLY NEAR THE
TEMPLES, BUT ALSO
AROUND THE LAKES ,
SMALL SCALE SHOPS CAN
CONTRIBUTE TO THE
ECONOMY
SIGNIFICANTLY.
5
FORMAL ECONOMY - TOURIST SPOTS
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Karkala

8. It’s a 4 month crop which is normally grown from March to June.
Enough produce is stored for the remaining year.
Bhole Raghavendra Kamath and Sons :-
•Imported cashew costs upto Rs.60/kg
•Profit for the company is upto 2.5 crore and 33% of it goes to income
tax deptt.
•Cashew shells are used to extract shell oil which is used for paint and
resins manufacturing.
• availability of raw materials within Karkala
•Increased foreign exchange
•availability of unskilled labour initially
Bharath Beedi Works Pvt. Ltd:-
•rolls out over 60 million beedies a day.
•The company employs around 50,000
workers directly and an equal number
indirectly.
•Raw materials come from Madhya
Pradesh, Orissa , North Karnataka
,Gujarat.
The tin industry is a supporting industry to cashew and
Other products.
Main example: Paduthirupati Containers
•Monhly wage around Rs. 1500-2000
•;17-20 employees
•Manufactures 1000 tin containers per day5
•Raw materials- Mumbai, Bangalore(tin sheets)
Sells it to : -Hebri, Borkatte and people- local cashew
factory
•Profit per tin Rs. 1.5
Karkala is on the top of a granite bed
that is about 300–500 feet thick. It is
the main natural resource found in
this area. The 2 major players in the
stone industry are:
•Bhuvanendra Shilpashala
•Vijaya Shilpakala Stone polishing and
cutting
happens in near by places.
Other industries present in Karkala
include:
• Oil (outskirts of Karkala)
• Rice (outskirts of Karkala)
• Wood (near state highway)
• Plastic
• Glass
•Unskilled labour is
diminishing
•Industry is controlled by
well established private
companies.
Therefore no new
industrialist can venture in.
6
FORMAL ECONOMY – TYPES OF INDUSTRIES
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Karkala

9. Vegetables Are Mainly Brought In
From:
Chikmanglur, Mangalore, Udupi,
Shimoga.
• Fish Come From Malpe.
• Fancy Items Come From Bangalore,
Bombay Etc.
• Pharmaceuticals From Bangalore,
Mangalore, Udupi And Shimoga.
• Textiles Come From Bangalore,
Bombay, Chennai And Kolkatta.
• General Stores Get Their Goods
From Udupi, Mangalore.
• Flowers From Hassan And Puttur.
Small scale industries which have
come up in and around Karkala town l
are:
• Sanoor Cashew Factory, Sanoor.
• Kukkundoor Industrial Area, Ajekar.
• Bola Cashew Factory, Manjarapalke.
• Bharath Beedies Pvt Ltd, Karkala.
• Lamina Industries Pvt Ltd, Nitte.
• Gayathri Exports, Karkala And
Vanjarkatte – Bola.
• Btkimpex And Swayamprabha
Cashews, Karkala.
• Brk Cashew ,Bailur
40.4
165
6
33.6
In state raw material Source Areas
Mangalore
Udupi
Chikmanglur
Locally(withing
Karkala)
Bangalore
7
FORMAL ECONOMY – LOCATION OF INDUSTRIES
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Karkala

10. 8
6
5
5
3.5
3
2.5
Land values (in lacs per cent of land)
Market area around bus stand Main road
Main temple bus stand area Area next to Gomateshwara
Tellar road Industrial area
Tellar Road – Residential zone.
Market Road: Commercial
Gomateshwara Temple with the open spaces surrounding it.
Main road leading to
veera maruthi
temple
Jayanthi Nagar on the
outskirts of Karkala town
FORMAL ECONOMY
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Karkala

11. there is potential for
commercial development
along this road ,due to the
new proposed bus stand
further north.
• The main bus stand is congested
hence the proposed new bus
stand should come under function.
distributing the bus routes.
• A few years ago, a new bus stand
was built in Bandimatta, however
it’s currently not functional due to
the hike in land prices near the
new bus stand area . hence ,
commercial developments have
not come up at that area . Land
price in the old bus stand area
reduced by a third after this shift.
• Understanding the economics
of the city, tourism, local
business, industries can be
encouraged.
More accomadation can be
provided near the tourist
spots in the form of short
stay hotels or guest houses
since Karkala is majorly a
stop over town. This can
also help in generating
revenue.
potential lake front development.
absence of recreation activities
in and around the lakes
The area near Attur Church has the potential to
accommodate commercial development in order
to boost the economy of that area. The stretch
leading to the church could be developed.
• This stretch has the potential for
industrial development and tourism
(near the stadium and Theme Park) if
the connectivity and road condition is
improved. The scenic view and less land
price are a plus point.
• This commercial stretch (Ananthashayna
Temple to Bus Stand), is mostly occupied by
family businesses. that have been thriving
for decades. Hence, it will be difficult to
relocate these shops. However,
redevelopment may be possible.
OLD VS. NEW BUS STAND
9
• Commercial development
has been prohibited
within 100-300 m radius
around the tourist spots.
Kotti chennaya theme
park: more scope for
improvement to generate
revenue.
INFERENCES
ADITI GARG | PALAK GUPTA | SHIVAM GARG | VAISHNAVI BARGOTRA
VII TH SEM SEC A FOA B.ARCH
Karkala