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CHAPTER – 5

INDUSTRIAL SURVEY AND POTENTIALITY REPORT

5.1 Introduction

The primary aim is of assessing the resource endowments, infrastructure set-up and

other factors influencing the industrial development of the region under study and also

to suggest scope for further industrial promotion and developing of region.

This report attempts to assess the resource potential of the district and the

infrastructure facilities available for industrial development. After a brief of the

present industrial structure and deficiencies in particular areas of infrastructure

development, all possible ways for a phased program of industrialization has been

explored. Based on the analysis of the data on resources, infrastructure and the flow of

goods and services to the local, national, and international markets, a few product

lines have been suggested for the prospective entrepreneurs for making investment

decision.

5.2 Background of the Industrial survey report

The ultimate development of any region or district depends exclusively on the growth

of different sectors of its economy. The industrial development of any region, in turn

depends on the resources, skills, infrastructure etc., available in the area and the extent

to which these are put to optimum use. This district has not made much headway in

industrial development, with exceptionally a few, but there exists considerable

potential for industrial development as well as expanding the industrial base of the

district. It may not be able to plan properly for the industrial base of the district

without such rigorous studies of existing industrial performance, productivity,

profitability, potential markets, and potentials for expansions and start of new

industries / businesses.

In the absence of the reliable data regarding existing industries and the availability of

resources, skills, infrastructure facilities etc. and so on, the present Industrial

Potentiality Survey of the industrial estates of Anand is mainly intended to assess.

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5.3 Objectives of the Industrial survey report

• To assess the resources with a view to utilize the same for industrial purposes,

• To assess the manpower availability of the district / estates with a view to utilize

the same for industrial development,

• To study the present level of industrial development of the district with

particular emphasis on tiny, small – medium scale industries,

• To identify new industrial possibilities of the estates of the district and out of

the various developmental and industrial opportunities,

• To suggest measures to build up the gaps in the infrastructure facilities and

industrial training especially for up gradations like CNCs, FMS, IT centres etc.

• To assess existing liaisons and involvements among industries of industrial township

Vitthal Udyognagar and institutes of educational township Vallabh Vidyanagar,

• To explore the possibilities of ancillary development based on the requirement

of large and medium scale units located in the district and neighbouring

districts,

• To prepare some market information reports of some of the products, which are

having scope for growth in this district / region, emerging out of the result of the

survey,

• To identify major problems and bottlenecks faced and suggest suitable policy

measures to overcome the problems, so that prospective entrepreneurs are

attracted to the large scale investment in the various sector in this district.

5.4 Scope and Methodology of the Industrial Survey report89

To achieve the above objectives, different segments to be surveyed were identified to

determine the existing status of the industries as well as to assess the availability of various

resources, infrastructure etc. in the district. The study therefore involved collection of basic

data from primary and secondary sources. Almost all promotional agencies, professional

bodies, development bodies, state, and local government offices, SSI units, have been also

contacted for ascertaining and make clear various types of data required for the survey.

89

SISI: Government of India, Ministry of SSI, Industry Survey Report, Raipur (2006)

135

Secondary data regarding resources of the district, development activities, physical

and social infrastructure available as well as demand supply situation etc. were also

collected from various state, central, private agencies in this district and various

publications referred to for this survey. This survey includes intensive discussion,

meets with well known personalities, industrialists, industry associations, CEOs,

educational institutes and educationalists, libraries, have also helped a lot in bringing

out this report in this form and to take the stock of the situation. Scope for

development is:

• Scope for establishing new industries in estates is very limited due to lack of

place, but there is a scope for constructing and developing other existing estates

of the district and even new estates at other places of the Anand district.

• Scope for establishing new industrial complexes to accommodate particular group

of industries, so that new units can come up in newly created places of Anand

district.

• Scope for establishing new Industry-Institute as directly joint venture for need

base skills development program for the estate, state as well for the country.

• Scope for establishing new Industry-Institute-Interaction as Memorandum of

Understanding (MOU) for Educational Institutions and Industrial Training

facilities for mutual benefit in preparing and availing talent pool of youth

available in this place for need base skills development program for all.

• Scope for establishing new Integrated Industrial parks serve as incubator to new

industries and facilitates healthy industrial development such as an Information

Technology Park to boost Electronic Telecommunications and Information Technology

Industry.

(The Information Technology Park set up with a view to give a giant leap forward to

develop and integrate the country into the world wide Information Technology network

near Gandhinagar - capital city of Gujarat)

5.5 The Origin of Anand district and industrial scenario - A profile90

State of Gujarat has been carved on 1st May; 1960. State government had decided to

make Anand as a separate district with effect from date 1-10-1997. It is a bifurcation

from Kheda district into two districts: Kheda and Anand. Anand district consists of

90

District Industries Centre Anand, Industrial Profile of Anand District (2004)

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Eight Talukas viz. 1) Anand, 2) Umreth, 3) Sojitra, 4) Petlad, 5) Borsad, 6) Ankalav,

7) Khambhat, and 8) Tarapur. Anand district is also famous as ‘charotar’ and located

centrally in Gujarat state.

Anand - Origin of operation flood - the white revolution of India

• Geographical location: 72.150 to 73.180 East (Longitude) 22.070 to 23.290

North (Latitude)

• Area: 2,951 sq. km.

• District headquarter : Anand

• Population;1,647,759 (As per 2001 Census)

• Population density: 558 persons per sq. km.

• Sex ratio: 910 Females per 1000 Males

• Literacy rate: 57.27%

• Nearest Airport : Ahmedabad and Vadodara

• Nearest port: Dahej port in Bharuch

• Major Industrial: Six Industrial estates and 1 1ndustrial park

Industries

• Anand is home to approximately 1000 small scale industries in sectors like, food

& agriculture, tobacco stemming, wood products and minerals which are fast

becoming the supporting pillars of the economy.

• Engineering, an important sector in the district witnessed a continuous growth of

66.6% growth over the last decade (1988-97)

• Plastic industries emerged as a thriving area for the investments and an increase

of over 100 times in investments was observed during 1998-07

• Cambay Chemicals Ltd., Beepee Coating Ltd., Elecon Engineering Company Ltd.,

Hindustan Packaging Company Ltd., National Dairy Development Board, Mother

Dairy Food Processing Ltd., etc are some of the major industries present in the

district.

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Investment Opportunities

• Dairy products

• Integrated Dairy and Meat processing

• Aquaculture and Animal Husbandry

• Food and Agro Parks

• Cold Storage

Educations: Main source of socially and economically upliftment is education. An

educational township: Vallabh Vidyanagar and an industrial township: Vitthal

Udyognagar is unique Industry – Institution – Interaction station. One more feather is

added in the form of satellite Township: New Vallabh Vidyanagar, hubs of education;

chasing changing global scenario of surrounding industrial estates.

5.6 Industrial estates of district, Anand at a glance

There are six industry estates in the district, Anand as on 2002 as shown in Table 5.1

Table 5.1: Industrial Estates, District Anand: (1999, 2004 & 2010)*

Sr.

no

Place Taluka Area

(Hectors)

Working Units

(1999) (2004) (2010)

Major

category

1 V. U.Nagar Anand 239.00 725 791 820 Engineering, Chemical,

Plastics etc.

2 Umreth Umreth 11.00 - 49 62 Engineering

3 Petlad Petlad 12.00 20 37 72 Saw mills

4 Sojitra Sojitra 11.00 45 32 74 Chemicals

5 Borsad Borsad 19.00 87 77 112 Chemicals

6 Kansari Khambhat 38.00 130 114 187 Rice mills

Total 330.00 1007 1100 1327 *Source: Industrial Outline of District Anand, District Industries Centre, Anand, (1999, 2004

&2010)

1. Vitthal Udyognagar, GIDC (Notified): Largest among all estates of the district

Anand. Mainly small scale engineering units. Small scale unites are ancillary

and independent in operations. Other units are: Electrical / Electronics; Paints -

Varnishes; Chemicals; Pharmaceuticals, Agriculture / Cattle & Poultry feeds /

Agrochemical; Packaging, Saw mills, Building materials; Plastics, Rubber,

Services / Trading etc.

V.U.Nagar GIDC: Largest among all estates of the district. There are mainly

engineering units, nearly more than fifty percent, with a few large-scale units.

Small-scale units are ancillary and independent in operations. Other units are:

Electrical/Electronics; Paints-Varnishes; Chemicals; Pharmaceuticals,

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Agriculture/ Cattle & Poultry feeds/ Agrochemical; Packaging, Saw mills,

Building materials; Plastics, Rubber, Services /Trading etc. Estates are equipped

with water, electricity, roads, sewages, pollution control, telephones, lacking in

canteens, shopping centres, hospital, fire stations, residences, etc.

It is reported that nine GIDCs out of eleven GIDCs of charotar districts,

almost breathing last-position and running only on papers.

The units in Vittal Udyognagar and Nadiad are lively running and

Borsad,Sojitra, Matar, Kapadvanj, Thasara,Balasinore,Khambhat,Petlad and

Umreth industrial estates are either sick or about to closed or already closed and

estates are becoming like desert and conditions have become more and more

severe.( Report: Sandesh-Ahmedabad,dt,15 march,2008,Kheda-Anand Edition)

GIDC-2: Existing GIDC is spreaded over 330 hectors of land, says Shri Kantibhai

Bhuva, jt.Secretary, Vitthal Udyognagar Industries Association. Further he added that

now there is no enough land available either neither for expansion / development of

existing units nor for establishing new industrial units. Therefore a proposal of

demand of additional 300 to 500 hectors of land is put before government of Gujarat

for consideration. It will serve dual purposes of development of industries and

provides more job opportunities to the people which the primary goal of origin of this

industrial estate since its inception by the visionaries of this project.

2. Umreth GIDC: This estate, now in Anand district of Gujarat, It is situated on the

way to Dakor Lord Krishna’s Temple, engineering units, major job works, under

development and more entrepreneurs to be encouraged for establishing various

units.

3. Petlad GIDC: Ragaipura GIDC: About 90 percent of total are saw mills,

remaining 10 percent wire netting industries and others. It is considered as 100%

running GIDC, next to Kandala in wood working and supply. Lack of basic

utilities such as: infrastructure like, proper roads, post office, school, bank,

hospital, recreation hall, canteen and guest house etc. Transport link is poor.

There is lot of potentiality of industries like; food processing, especially Banana,

Potatoes, Cotton processing and pressing; Sugar mills etc.

Lack of helping hands, government help, Failure of co-operative sectors, blows

heavily. Labour and labour union problems, Bureaucratic hurdles all these

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unhealthy environment affect the smooth functioning of industries; affects

industrial performance and hence productivity, churns by the owners of the

industries.

4. Sojitra GIDC: Established on18 may 1985 with 53 plots, mainly saw mills and

food processing units. Others electrical-electronics-switchgears; building

materials; ceramics processing; are among few industries, it seen almost empty

with large to small plots idle /silent. Withdrawal of subsidies, failure of co-

operative sectors hit counter blows. Lack of basic infrastructure like, street

lights, water, roads, post office, school, banks, hospital, recreation hall, canteen,

and guest house etc. ceased the growth of GIDC. Transport link is poor. There is

lot of potentiality of industries like; food and wood processing industries,

needs to be intensified manufacturing industries, says Daxeshbhai Raval, local

industrialist.( Divya Bhaskar News Service-Sojitra-Anand,19 may,2009)

5. Borsad - Vasana GIDC (Notified): 115 plots and 80 running units: Among

these; Paper- board mills, Tobacco processing, Ice factories, Rice mills- Puawa -

Mamara, Plywood, furniture making industries, plastics products, cattle foods,

adhesives items are main industries. There is potential to start food processing

industries, like; Banana, Potatoes, Wheat, Dangar (Rice) processing, oil seeds

processing etc retread, remoulding, powder-soap; lining work etc. Lack of

infrastructure, political interferes, government policy, pollution problems are

causes of lopsided growth.

6. Kansari - Khambhat GIDC: The major units cluster is rice mills and paddy

processing units working on traditional methods and there is lot of potentials for

expansions of agricultural processing on large scale. The modernization will

help improving performance of the units. This GIDC is undeveloped compared

to others estates of the district.

5.7 Vitthal Udyognagar - An industrial estate at a glance

This industrial area is adjoining to educational areas, Vallabh Vidyangar and New

Vallabh Vidyanagar has the two complimenting activities viz. learning and its

application are located adjacent to each other, it has created an atmosphere of mutual

help and development. Engineering industry is primarily a metal using industry

through other materials like plastics; nylon, rubber, etc. are also used as inputs. There

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is a close and healthy co-operation and co-ordination among all units. This has

fostered a rapid development of this industrial complex. This co-ordinate effort was

aided by the fact that the GIDC set up an industrial estate at Vitthal Udyognagar. The

research study is based on this scenario and industrial units registered with Vithal

Udyognagar Industries Association (VIUA). The broad classification of industries of

the estate is as shown above (see Table 5.2)

Table: 5.2 Industrial Spectrums: Classification of Members’ Industries*

Sr.

no. Year

Engg.

&

allied

Chem.&

Allied

Elect.

&

Electro.

Paints &

Allied

Plastics &

Allied

Services &

Traders

Assorted

& misc.

Total

1 1980 101 24 16 10 11 - 58 220

2 1990 178 23 30 16 20 - 99 356

3 1994 210 17 30 40 30 63 120 510

4 1995 207 18 36 30 19 28 31 369

5 2002 206 15 55 26 22 15 115 444

6 2007 311 31 29 23 28 85 85 592

*Source: VIUA Directory: 1980, 1990, 1995, 2002 & 2007

Note: The figures vary, as records are of different time period with changing scenario.

Since 1965, this industrial area has developed by leaps and bounds and now it is one

of the largest engineering estates in district Anand. It has about 600 units, providing

employment to nearly 15000 persons in the various industries. With the growth of the

industrial estate its problems also grew. Competition, development of technology,

reliance on old methods and human skills, government policies and associated rules

and regulations, recurrent power cuts year after year; have all contributed their bit.

This has resulted in reduced profitability of the industries (small and big), leading to

widespread sickness and closure of many units. In 1973 in the initial stage of

development, the entrepreneurs here took a wise decision of having an association of

the various industries, under the name and style of Vitthal Udyognagar Industries

Association (VUIA). Industrial estate consists of variety of various industrial units,

changing with the time.

Industrial Infrastructure Facility:

Availability of infrastructure facilities determines the pace of economic development

of a region. The V.U.Nagar G.I.D.C. enjoys the best infrastructure facilities that any

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entrepreneur could dream of and the G.I.D.C. is ranked in infrastructure availability in

district Anand. This G.I.D.C. is facilitated with a nearby domestic and international

airport, national highways, state highways, Express way, broad gauge & meter gauge

railways connecting important districts in the state as well as cities in the country,

gives unique advantage of easy access to most of the resources and domestic as well

as international markets, required for industrial development. There are excellent

communication facilities, educational facilities- An estate is surrounded by two big

educational townships: Vallabh Vidyanagar and new Vallabh Vidyanagar, banking

facilities, Educational institutions and training facilities in the city. A short review of

the existing infrastructure facilities and future program and planning in increasing the

facilities are discussed in the following paragraphs.

Physical Infrastructure:

Industrial estate development program is taken up wherever there is demand and good

scope for starting new industries. Care is taken to select the government lands to cheaper

cost or private lands at reasonable cost through private committee and facilitated according

to the requirement of the entrepreneurs to set up industries in Gujarat state, the basic

infrastructure facilities like roads, street lights, water, drainage facilities etc. are provided in

the industrial estates. Provision is also made for future accommodation and other amenities.

GIDC is also maintaining all the industrial estates to keep the infrastructure facilities in

good condition. Developed plots were also made available in the industrial estates. Now

land is in scarcity, new G.I.D.C. is the demand of the day.

Transports: The development of transport and communications system is an

important factor for industrial development. The availability and coverage of transport

and communication system invites industries to cluster in one area, even if some other

difficulties are there. Intra-city transport and commuting facilities between the

suburban areas to the centre of Anand should be the most efficient to boost industrial

development amongst all the metros in India. The most economical mode is hired

transport. Road transport system is well developed in the district. The district is

connected with all important commercial centres of the state and as well as country.

Railways: The well developed railways in the district have played an important role

in the economic development of the district. Anand is well connected to rest of India

with rail. The district is connected by meter gauge and broad gauge rail with the other

districts and other states in the country.

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Port facilities: Anand has no all-weather harbour with modern container facilities.

Candala port is has been functioning very effectively, giving good scope for setting up

export oriented units / business activities in the state. It is a versatile port with

facilities for material handling in efficient and modern way.

Airports: Anand has nearby an international airport at Ahmedabad, domestic airport

at Baroda. There are also domestic airport at other places in Gujarat with a number of

flights daily to different parts of the country.

Tele-communication: Healthy development of any economy depends on modern

telecommunication facilities. Gujarat is part of the global telecommunication network. All

parts of the district cities are covered by postal & tele-community – internet facilities.

Power: Electricity is one of the most vital infrastructure inputs. Fairly well developed

infrastructure and comfortable power situation offer significant competitive

advantages to Gujarat in attracting investment. Gujarat is one of the few states without

power cuts and with zero deficient power situations. Sardar Sarovar hydropower

generation is life line for the states associated.

Water: There are four rivers- reservoirs in Anand district and surrounding viz.Mahi,

Sabarmati, Sheddhi, and Navida which feed the water needs of Anand district. In

addition to the above water projects, Narmada dam, Sardar sarovar water project is

expected to meet out the requirements of water in Gujarat by and large.

Social Infrastructure:

Entrepreneurship: The district is endowed with talented entrepreneurs who are

known for their business acumen. In spite of the man power of the district is marked

for its diverse skills, professional expertise and its ability to communicate in local

languages as well as English, there is need for certain special type of highly skilled

manpower in the context of the present global competitive scenario to meet desired

quality and expected targets of products and services. The state of Gujarat invests

highly on education and invites private sector to invest on education ranks in terms of

total expenditure on education clearly indicating the trust on creating a sound human

capital base. At a stage when the emphasis is gradually shifting to knowledge and

technology-based industries, this human resource base combined with a favourable

labour climate offers ideal condition for entrepreneurship development and economic

growth.

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Colleges and Institutions: Availability of skilled labour is an important pre-requisite for

industrial development of a place. There is a Sardar Patel University in addition to Anand

Agricultural University, IGNOU and Dr. Babasaheb Ambedkar open Universities’

centres and various extensions / openings of national and international Universities in the

Anand district especially Vallabh Vidyanagar, now nodal centre of Gujarat

Technological University. There has been a rapid growth in the number of engineering

colleges in the Gujarat state; the Anand district has four engineering colleges, which

includes very first engineering college of the state for women and more in coming up

shortly. Education is available from K.G. to Ph.D. at one place in all most all disciplines

colleges / Institutes for special education, general education and for professional

education in the district. This shows the professional strength of the district.

5.8 The buzz in V.U.Nagar GIDC a Mirage!

The rumbling of loud machines greets all at different intervals as drive through the

V.U.Nagar – GIDC area these days, giving the impression that the campus is finally

buzzing with industrial activity after lying defunct for many years. It would give the

impression that some small-scale units have not gone bankrupt.

However, a closer scrutiny reveals that the swelling number of ancillary units may just be

a mirage. Such units may not survive for long as they all depend on large companies.

According to one estimate, more than 350 ancillary units have come up on the larger

plots; some of them were lying vacant for years. Some interested parties purchased plots

from companies which had already left GIDC and then divided them into sub- plots. The

sub plots were later sold or rented to small manufacturers or other businesses.

“It is preferable to have ancillary units in GIDC, instead of huge plots lying unused.

If the big units shift their base outside the V.U.Nagar, then the small units, which are

heavily dependent on the big players for job work, would also close down, owing to

lack of business”.

At present, ELECON group of companies is an example of Big Boss-Big players,

which here to stay for the survival of the others, said, an official of VUIA.

One of the owners of ancillary unit in GIDC here said, “When started manufacturing here

as there were very few big companies and at present the scenario is almost same, but there

is lot of outsource work. There were good profits as less to spend on the plot and all the

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necessary facilities were readily available. Those who cannot afford huge investments

prefer sub-plots.

If whatever the big units in GIDC have been at present, either closing down or

shifting to other locations due to infrastructural problems and prohibitive octroi / taxes

rates, lack of proper infrastructure, including water supply and proper roads will

directly affect the small ancillary units tremendously bring down the profit levels of

big industrial units.

Most ancillary units that have come up in GIDC are engaged in fabrication,

manufacturing and plastic industries. If big units plan to leave V.U.Nagar, owing to high

octroi / taxes rates and lack of additional plots, small units will suffer in large scale.

Presently, the small units dependent on ‘job work’ which are flourishing, but the big

units too need support, says R.N.Rawal, General Manger and Assistant Industry

Commissioner, District Industries Centre, Anand.

He further says, “We grant permission for dividing the plots. A number of units have

been approaching for the permission to start their work on the sub-plots and have

given permission to most of them”.

Ultimate objective is to increased utilization of the land/sheds and infrastructure to improve

the overall performance of the estate in general and industry in particular to contribute in the

development of the sound economy of the state and hence the nation. It will improve the

standard of living of the people through higher productivity of the industrial units.

5.9 Present Industrial Structure in Anand District91

To help draft conclusion the following issues must be attended to understand

changing industrial scenarios.

General Industrial Climate: Anand district is not a backward district as far as

resources are concerned. However, the district economy is predominantly agro based

and it has not made much headway in industrial sector when compared with activities

in adjoining districts like Vadodara and Ahmedabad.

Whenever development has taken place has been concentrated in Anand Taluka,

especially in Vitthal Udyognagar industrial estate only and is due to relatively better

infrastructural facilities and proximity with Vadodara, and other places. The registered

91

INDEXTb, A snapshot, Industries Commissionerate, Government of Gujarat (2010)

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small scale a unit in the V.U.Nagar alone more than 1000 in 2007.The majority of them

are of ancillary unites; engaged in manufacturing, job working, wood products,

chemicals, electrical-electronics and repair and services. Analysis of the present

industrial structure will give an idea about the industrial scenario in the district.

Large and Medium Scale Industries: There are about 10 large/medium scale units

in the district. These units produce a variety of products, Out of 10 industries, 3

industries are closed with many reasons.

Small Scale Industries: The present industrial scenario depicts a mixture of a 10 large

and medium scale and registered small scale industries during the year2007-08 are

1000. The major concentration of industries in the Vitthal Udyognagar G.I.D.C.,

remaining 7 Talukas account for a small portion of industries. It is evident from the

district that there is no balanced industrial development. In this direction, efforts are

needed from state and central Governments to improve the infrastructural and training

facilities to give a boost to the industrial development. Table No.5.2 shows indicates the

product wise concentration of existing small scale industries in the estate under study.

It is working to provide employment to rural masses. There is lot of scope to provide

employment opportunities to the rural people of charotar as around the district

population resides in the rural belt. A large number of workers work in agriculture

sector which provides work for only few months and depends heavily on monsoon.

This scenario is causing migration but the small scale projects should fill the vacuum.

Charotar districts are rich in natural resources by exploiting these aspects many units

could be set up. In this case state government should help to make available initial

investment to the unemployment youth.

Prospects of Industrial Development: The industrial development in the district has not

reached the optimum level so far, lack of initiation and entrepreneurship, shortage of

skilled persons, poor living standard of the people in the country side, inadequacy in basic

facilities and amenities are reasons for the slow growth of the industries in districts

Exploitation of natural resources, optimum use of available resources and exploitation of

new markets for the products in the district, a number of small scale industries based on

agricultural, dairy, electronics and IT products can be established in the district. Increase

in the urban population day-by-day and the message of using modern goods reaching the

remote villages through effective media/communication at present, a number of demand

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based units can be established in the district. As the construction activity is increasing

constantly manufacturing of bricks, wooden furniture, steel furniture, fabrication items,

electrical appliances etc. is having a vast scope in the district.

Criteria for identifying candidate industries: Generally, industrial proposals are

being made on availability of raw materials or demand. The selection of candidature

industries proposed for the district is based on the following criteria:

1. Availability of various raw materials.

2. Present status of industrialization.

3. Availability of skilled persons and working force.

4. Technology up gradation and likely to be available in future.

5. Market potentiality.

Based on the above mentioned criteria some industrial groups have been identified

and suggested as under:

Small Scale Industries:

The main objective of the survey is to identify the possibility for setting up of more

industries in small scale sector. The country accorded high priority to this sector on

account of its employment potential, comparatively less requirement of capital, short

gestation period, use of traditional skill, useful links with medium and large scale

sector, wide geographical spreading, promotion of balanced regional and within

region development, etc. The sustained growth of SSI sector in last 5 decades has

been made possible by the special attention bestowed by the policy makers. This has

helped increased rural industrialization, per capita income and the standard of living

of the rural population. The large scale industries require more investment and which

proves to be capital intensive not for labour intensive.

5.10 SWOT Analysis of Industrial Estates of Anand District

The detailed analysis of Strengths, Weaknesses, Opportunities, and Threats (SWOT)

for industrialization of Anand district is carried out in this section so as to arrive at

suitable proposals for the future.

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SWOT ANALYSIS

STRENGTHS WEAKNESSES

Availability of natural resources :

Anand district has got good fertile land,

plenty of water, uninterrupted power

supply etc. These basic resources offer

good scope for new industries.

Scarcity of primary raw material :

All primary raw materials have to be

brought from other districts/states. This

has resulted in an increase in the cost

of production and even some times, in

scarcity of those items.

Established power supply network:

All the villages of the district are

electrified. Power is available

continuously without interruption for

industrial units.

Requirement of licenses and

clearances:

One of the major hurdles in the way of

starting new industries is the

requirement of large number of

formalities from different agencies,

local bodies, etc. which results in

undue delay.

Industrial estate /growth centre :

The district has development centre at

Anand with required amenities, which

provides, help, and guidance for new

industrial units.

Lack of proper database :

The district lacks a proper databank

and hence industrialists are unable to

identify products in accordance with

market needs, skils,availability of raw

materials etc.

Brainpower:

Higher technical education facilities in

the district are well developed. Brain

power is very strong as two educational

townships are here. Technocrats,

educationalists, young engineers are

coming out every year.

Manpower:

The district has not abundant reserves

of skilled-trained workers. There is

lack of training facilities to produce

skilled manpower especially in CNC

operations for the industries.

Financial institutes:

Almost all banks have their branches in

Anand district. They make it easy for the

entrepreneurs to avail the required

financial assistance for their units.

Industrial sickness:

High rate of sickness in the industrial

sector is causing considerable concern

to new entrepreneurs and thereby limits

their investments.

OPPORTUNTIES THREATS

Development of agriculture sector:

Establishment of agro-based industry will

in turn provide opportunities for the

development of agricultural products

such as fruits, vegetables, food

processing etc.

Ecological imbalance:

There are possibilities of creating an

ecological imbalance because of felling

trees, changing topography of the land,

utilization of large quantity of water.

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Employment opportunities:

Settings up of more industries will

provide employment opportunities to the

youth, and especially lower level

workers.

Environment pollution:

Creation of unacceptable levels of

pollution in water, air, sound, etc. by

the industries creating health hazard to

all living.

Electronic industries:

There are opportunities of establishing

electronics; computer related industries as

numbers of such units are less to meet the

demands of the industrial applications.

Software development is one of the areas.

High cost of living:

The migration of large workforce may

create pressures on land, housing and

other facilities. The cost may go up,

resulting high cost of living to the

existing local people.

Overall development of the district:

The development of industrial sector will

influence the overall development of the

region and thereby improving the

standard of living of the local population.

Proper investment climate:

If a proper investment climate is not

provided, the capital might get diverted

and get sunk in unproductive assets,

will cause capital squeeze.

On the basis of the strengths and weaknesses of the district, the natural resources,

available skills and the market potential; certain products have been identified. It may

be noted that in this region agriculture is the main activity and the small farmers are

not interested in industrial activity.

These products have been classified as follows:

a) Thrust Industries: These industries which are to be given special emphasis now-

a-days consisting of units of fruits and vegetable processing, cattle and poultry

feeds, wood based industries.

b) Skill based industries: These are products which could be manufactured utilizing

available skilled and intelligent manpower of the district. These include electronic

products, computer software development and hardware maintenance, industrial

hygiene and bio-technology products.

c) Demand based industries: In order to suit the large market for consumer goods,

products like food preservation, spices processing, plastic products,

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engineering products, leather products, paper, printing, repair and servicing etc.

d) Agro based industries: The foremost goal of rural industrialization is enrichment

of the Quality of Life of the rural people by facilitating the availability of material

and cultural requires of economic well being for all of them. Agro industries by

using locally available raw materials and indigenous know-how open

opportunities for educated, skilled and uneducated manpower. The most important

aspect of agro industrial development is the development of the tertiary sector of

the economy i.e. transport sector of the economy, communication and banking in

rural areas. They develop fast pace and open more employment opportunities for

the people in rural and urban areas.

Steel furniture: At present good quality wooden furniture has almost become a

luxury. Wood is becoming scarce and hence wooden furniture is getting costlier.

Generally steel furniture is taking its place and becoming popular. The growth of the

economy and the population has resulted in a rapid increase in number of houses,

factories, hospitals, commercial establishments etc. Furniture and fixtures are

essential items in any building - commercial or residential and hence a corresponding

increase is observed in that ground.

Wooden furniture: The growth of economy and popularity has resulted in a rapid

increase of residential buildings, hospitals, commercial establishments, educational

institutions and offices buildings. Wood is the material commonly used for doors,

windows, cots, chairs, tables, almirahs, racks, roofs etc. The major attractions of

wooden furniture are its elegance and strength and this has increased in the increased

use of woods.

Agricultural Tools and Accessories: Agricultural is the backbone of the national

economy providing employment to major mass of the total population. Agriculture

depends largely on the vagaries of the monsoon. In recent years, agricultural

production has maintained a steady up-trend, partly due to favourable weather and

due to technological factors like improved farm practices, extensive use of high-

yielding seeds and increased consumption of fertilizers.

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Wire nails: These are certain products which always command good market share

irrespective of the technological advancement achieved elsewhere in the society.

Drawn wire and wire nails are among those items. Drawn wires are used for

manufacturing wire nails; it finds application in many fields of day-to-day life. The

wire nails are widely used for fastening purposes. There are few wire netting units in

G.I.D.C. Petlad of Anand district.

Engineering products: Agricultural-farm machineries, wire nails and products,

aluminium fixtures, barbed wires, building materials/ hardware fasteners, automobile

workshops and auto spare parts etc.

List of industries suggested for women entrepreneurs: Food processing, Bakery,

Tailoring and embroidery, Fashion designing, Data processing, Power laundry, Desk

Top Publishing, Screen printing, Beauty Parlour, Masala powder-flour mills, Paper

cups and plates, Interior Decoration and many more.

5.11 Special focus on Vitthal Udyognagar GIDC of Anand district

In this section special focus is given on Vitthal udyognagar GIDC of Anand district.

The analysis of Strengths, Weaknesses, Opportunities and Threats (SWOT) is carried

out to study the status of the Vitthal udyognagar GIDC as to arrive at suitable

proposals for the future.

SWOT ANALYSIS

STRENGTHS WEAKNESSES

Anand district has got fertile tract:

Areas between rivers Mahi and Vatrak is “Charotar” - Pot filled with charus

(coins).With abundant water resources and lot of green trees, Anand and

Nadiad are developed cities and known as the industrial cities of

Charotar region.

Scarcity of primary raw-material:

Most of the primary raw materials have to be brought from other districts, states

nationally and internationally. Since these items are not available locally, this

has resulted in an increase in the cost of production and even some times create

scarcity of these resources.

People are hard working:

People of this region possess robust

common sense down to earth,

practical, bold, enterprising, informal

and straight forwards. These qualities

of the people offer good scope to start

new industries.

Licenses & clearances hurdles :

Though many relaxations are offered in

starting new industry, still it is one of the

major hurdles in the way of starting new

industries is the requirement of a large

number of licenses, clearances and

certificates from different agencies,

departments, local bodies, etc. which

result in undue procedural delays.

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Electric power supply network :

V.U.Nagar GIDC has consistent supply of power for industries.

Sufficient numbers of feeder, substation, transmission & distribution

network has been established

Lack of proper database:

V.U. Nagar GIDC has library facility in association’s hall but unorganised and

there is no mechanism for keeping records of past / present data and hence

entrepreneurs are unable to identify the industrial needs.

Proximity to V. V. Nagars:

V. U. Nagar GIDC is situated between

two giant educational townships,

namely Vallabh Vidyanagar and new

Vallabh Vidyanagar. In addition to

this, the estate is surrounded by

numbers of institutes, imparting

higher education for availing and

exchanging know-how.

Proximity to V. U.Nagar:

V. U. Nagar GIDC is about 5 kms from

Anand which is district head quarter.

Railway facilities for transport are at

Anand, most of the transportation is on

the road, though rail is cheaper compared

to road but convenience is constrained.

Airport facility is at Ahmedabad about 80

kms and at Vadodara is about 35 kms.

Industrial Institutes - Traditional:

In GIDC itself, there are two

traditional industrial training institutes

producing skilled workers.

Industrial Institutes - Advanced :

There are two industrial training

institutes producing skilled workers

except CNC operations &programming.

Industrial growth centre:

The GIDC office, VUIA office, DIC,

Anand helps to provide information,

guidance for new industrial units and

existing one.

Increased incidence of sickness:

High rate of sickness in the industrial sector

is causing considerable concern to new

entrepreneurs and thereby limits their

investment. Number of units originally

registered for business, fall sick and still struggling to come out from industrial

sickness.

Presence of financial institutions:

Almost all banks have their branches surrounding V.U.Nagar. The presence

of these banks and financial institutes in the Vallabh Vidyanagar and Anand

help to avail the required financial assistance for the entrepreneurs.

Lending policies of commercial banks

One drawback of the lending policy of scheduled commercial banks is that a

separate quota has not been fixed for SSI sector. With the failure of private, co-

operative banks SSI units’ holders were paying high rate of interest to co-

operatives and now paying to private money lender.

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Technical Education:

Technical education facilities in the district, Anand, V. V. Nagar, V. U.

Nagar, and surrounding are well developed and flourishing with latest

concepts, courses, and disciplines. Industrial Training Centres are well

planned and institutes are providing

technical knowledge in chosen areas.

Industry - Institution - Interactions:

This area is with the knowledge and hub of education in surrounding but enough

tie-up is not been established with the accelerating industrial units, nor they are

in position to spare enough time for such activities and there are some MOU

signed on papers could not do much in

this line for augmenting knowledge gap.

Business Centre : Anand being a good business centre

offers better marketing facilities for

the units located in adjacent industrial

estates. Utterly Buttery AMUL,

NDDB, IRMA, GMMFC, etc. are the

feathers in the crown.

Agriculture Sector : Agriculture and horticulture have not

been effectively explored. Anand in this

region with agriculture university and

dairy and veterinary institutes are

explores countrywide but local

community associated with less density.

OPPORTUNITIES THREATS

Relief to unemployed and skilled

workforce: setting up of more industries

will provide employment opportunities

to the large number of local people

migrating elsewhere for employment.

Existence of unorganized competition in

the agriculture sector. The activity of this

region is farming and small farmers are

not interested in establishing industries.

Rehabiliazation of sick units survive

overall growth of the estate,

entrepreneurs and will provide more

employment opportunities.

The rehabilitation policy of government

is not adequate and caused serious

concern and survival of industrial units is

in question.

Electronic, computer related industries

with CNC machines development &

training, software have vast

opportunities. Qualified technocrats

from surrounding technical institutes provide vast opportunities in

development of these areas.

If a proper investment climate is not

provided the capital might get diverted

and get sunk in unproductive assets. This

will cause capital squeeze for new

projects. Also money will remain as deposit rather than put to productive

purpose.

The development of industrial sector

will influence the overall development of region and thereby improving the

standard of living of the local population, adds more prosperity by

higher industrial productivity. Compare to other estates of the district

this estate is flourishing and there is

still further opportunities for growth.

The balanced development of all the

industrial estates will influence the overall development of the district, but it

is observed that out of six five estates are not performing up to the mark and it

may cause unbalanced growth of the region, thereby uniform improvement in

the standard of living of the local

population in question.

On the basis of the strengths and weaknesses of the V.U.Nagar GIDC and bearing in

mind the changing demands and market potential certain products have been identified.

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a) Thrust Industries: These industries which are to be given special emphasis

now a day consists of electronics, computer related, software development and

CNC operations for local industrial units. There are very few large scale units in

the V.U.Nagar GIDC and need more number of giants to help survival of small

units, most of them are allied ancillaries units dependent on few large scale

units.

b) Skilled Based Industries: V.U.Nagar GIDC is adjoining to the two educational

townships and advantages of facilities established in technical and other

institutes and facilities at industrial base can be availed for the mutual benefits

of both, industries and institutes. Research, testing, consultancy and handling

technical projects, a centre for excellence should be there.

c) Demand Based Industries: In order to meet day to day changing demands of

the day, an appropriate mechanism must be established for demand base, skills

development to meet market demand.

5.12 Industrial Scenario: The industries on the moves92

Corridor of Prosperity: A chunk of Delhi Mumbai industrial corridor (DMIC)

passes through prime industrial belt of Gujarat as well. This makes the state a

destination by default for companies looking to engage in entrepreneurial activities in

India. The Japanese government has already shown interest in developing a mini-

Japan township near Dholera SIR which is an essential part of the DMIC corridor.

“The Japanese look at all aspects when it comes to establishing their industrial area.

The current DMIC model is based on the Tokyo-Fukuoka corridor in Japan.

Traditional Strengths:

• Textiles and chemicals have been traditional industrial strengths of Gujarat and

the state is sharpening its strengths to meet modern era industrial challenges.

New Forays:

• Ship building and cargo services are a new industrial activity finding firm

footing along the vast coastline. Already the state was well known for its ship

breaking and scrapping facilities at Alang port. Other ports at Pipavav,

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Marawala, Adil, Times B2B, The times of India, Ahmadabad August 15(2010), pp1-4.

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Magdalla, and Dahej etc are opening good trade prospects of shipyard facilities

and shipbuilding.

• The power segment too is witnessing a boon and multinational companies like

Areva, Alstrom, and ABB are finding it favourable to establish units in Gujarat.

• Many local companies are engaging in manufacturing fibre /glass reinforced

polymer based products, finding universal industrial acceptance and the demand.

• Auto ancillaries supplying cost-effectives inventory support to major

automakers like Tata, GM, Maruti Suzuki etc. having plants in Sanad and

Vadodara in Gujarat.

• Gujarat shows the way in chemicals and plastics manufacturing.

• Vadodara has an amalgamation of business to business and SME cluster catering

to every need of mother industries.

• Robust Rajkot is on the threshold of carving an industrial niche for itself.

Industrial Scenario in Gujarat: Gujarat has registered an impressive industrial

development since its formation as a separate state in 1960. This survey further

reinforced the position of Gujarat as the most industrially developed state in India. The

industries in Gujarat produce a wide variety of products. Over a period of time, Gujarat

has also succeeded in widening its industrial base. At the time of inception in 1960, the

industrial development was confined only to four major cities namely Ahmedabad,

Baroda, Surat and Rajkot and some isolated locations such as Mithapur and Valsad.

Today, almost all the districts of the state have witnessed industrial development in varying

degree. Such a massive scale of industrial development has been possible on account of

judicious exploitation of natural resources. Gujarat Industrial Development Corporation

(GIDC), established industrial estates providing developed plots and ready built-up sheds to

industries all across the state. Institutions were also set up to provide term finance,

assistance for purchase of raw materials, plant and equipment and marketing of products.

Later, District Industries Centres (DICs) were set up in all the districts to provide

assistance in setting up industrial units in the form of support services and have been

instrumental in accelerating the pace of development of SSIs. On the other hand,

Small scale industries have also played an important role in spreading of industries.

The state also developed infrastructure facilities required for industries, such as

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power, roads, ports, water supply and technical education institutions. The

Government also introduced incentive schemes, from time to time, to promote

industries mainly in the under-developed areas of the state to correct regional

imbalances. All these initiatives have made Gujarat to emerge as the highly

industrialized state in the country today.

The number of SSIs increased continuously and has reached to over to 3, 12,000 by

September 2006. The State Government has taken initiatives to extend support for

further strengthening through interventions such as technology up-gradation, quality,

productivity improvement, setting up of common facility centres, skill development

facilities, etc. with the active assistance of R&D institutions, as well as industry

associations.