Ahmedabad fast becoming a manufacturing hub

Ever since Tata Motors moved its manufacturing plant into Sanand near Ahmedabad in early 2010, the city gone into top gear in terms of growth in the manufacturing sector. The State industrial body (GIDC) proactively acquired more than 1,500 hectares of land adjoining the ‘Nano Plant’ in Phase 1, foreseeing the investments that would follow, feels Nirav Kothary, Head – Industrial Services, JLL India.

Nirav Kothary

The focus was to develop Ahmedabad as a major automobile and ancillary cluster in India. Ford India’s entry in Sanand in 2011 with a proposed investment of Rs 4,000 crore and a direct employment proposal of 5,000 persons was another major milestone. A host of other industries followed, not only in the automobile sector but across all sectors. Notable examples are Hitachi Hi-Rail, Hyundai Engineering, Bosch, Inductotherm, Nestle, Colgate Palmolive and Beiersdorf AG, to name a few.

Additionally, a Special Investment Region (SIR) is being developed in Mandal–Bechraji (laid out over 8 villages), about 90 kms from Ahmedabad. For this initiative, the Government of Gujarat and JETRO (the Japanese Government’s business promotion arm) have joined hands to develop a Japanese Industrial Cluster.

Maruti Suzuki, the country’s largest car manufacturer, has committed a greenfield manufacturing plant there with an investment to the tune of Rs 4,000 crore. Honda Motorcycle and Scooter India Private Ltd (HMSI) has also announced an investment of Rs 1,100 crore for a two-wheeler manufacturing plant. Other major industrial occupiers who have already been allotted land in this park include Mitsubishi Aluminium, ROKI Minda and TS Tech Co. Ltd.

The modus operandi of the Gujarat Government has to provide enabling infrastructure like good connectivity, uninterrupted power, quality water and industrial gas to the industries, rather than just offering incentives to lure industries. Even with minuscule incentives, the state has successfully managed to attract significant investments into the manufacturing sector. 

According to DIPP data, Gujarat saw industrial investments of Rs 70,172 crore from 2010 up to October 2013 in the form of IEM (Industrial Entrepreneur Memorandum) or actual projects delivered on the ground, which is more than 1/3rd of the country’s share in this period.”

Article by Nirav Kothary, Head – Industrial Services, JLL India