Dharavi: An Informal Industrial Hub

How Mumbai's Dharavi is both a crowded settlement and a busy centre of small industries like leather, pottery and recycling, and the debates over its redevelopment.

Dharavi in Mumbai is often called one of Asia’s largest slums, but it is also a busy economic hub.

Industries

Leather goods.
Pottery, especially in the Kumbharwada area.
Garments and embroidery.
Recycling of plastics and metals.
Food products like snacks.

Scale

Dharavi’s informal businesses are estimated to generate substantial annual turnover, with thousands of small units.

Why businesses thrive

Low rents and cheap space.
Workers living nearby.
Supply chains in close proximity.
Central location in Mumbai.

Problems

Crowding, poor sanitation and health risks.
Informality: no formal land titles or protections.

Redevelopment

Plans to redevelop Dharavi have existed for decades. In 2022, the Adani Group won the bid for the Dharavi Redevelopment Project. Debates continue about:

Who qualifies for free housing.
Whether businesses can stay.
Relocating residents to other areas.

The recycler

In Dharavi, a small unit buys plastic waste from pickers, cleans and shreds it, and sells pellets to factories. Dozens of such units form a recycling chain.

Thinking slums are only places of poverty

Dharavi is also a hub of small industries and entrepreneurship.

Key takeaways

Dharavi houses many small industries.
Low rents, nearby workers and supply chains help businesses.
Crowding and informality are problems.
Adani won the redevelopment bid in 2022; debates continue.