Ahmedabad, 2 February 2012

Two good news in last two days for Gujarat, and especially for Ahmedabad.

First one published in DNA yesterday saying that PSA Peugeot Citroen is shifting its India headquarter from Mumbai to Ahmedabad, Gujarat. The headquarter office will be in newly developed Prahladnagar area next to SG Highway. The office will have 150 staff members. Peugeot has already announced to set up its car manufacturing plant at Sanand.

And read on the second headline on second day. The Times of India report says that Swiss compnay Nstle SA’s Indian subsidiary Nestle India has finalized to invest Rs 100 crore in two phases to set up a snacks and confectionery plant in Bol village, next to Sanand in Gujarat.

Last year you read that Colgate Palmolive has decided to set up a greenfield facility at an upcoming industrial estate in Sanand near here with an estimated investment of Rs 200 crore. Colgate’s this plant will also come up in Bol village at the upcoming GIDC industrial estate. Colgate has been allotted 1,00,000 sq meters of land.

The government has also given nod to the projects of Hitachi, Tbea, Corning, Allied Minerals and Bosch in Sanand belt. Tbea is Chinese company which will set up a transformer manufacturing unit with an investment of Rs 2,000 crore, while Japanese consumer electronics company Hitachi Limited and Gandhinagar based Hi-Rel will set up variable frequency drive medium voltage application plant for power sector. American firm Allied Mineral Product Incorporation is coming up with monolithic refractory plant with an estimated investment of Rs 100c rore. Here mineral product useful for cement, steel and foundry industry will be manufactured. Bosch has planned to invest Rs 275 crore for its plant.

Why this rush at Sanand

-This rush is thanks to assured availability of land. It is the government that is buying land from the farmers in villages around Sanand. So the industry has to contact only the government for requirement of land to set up its plant. The government has already acquired huge land in this area to set up GIDC(Gujarat Industrial Development Corporation) industrial township. So the easy land availability is one reason for this rush.

-The other reason is proximity to Ahmedabad. Sanand’s industrial belt is less than half an hour distance from the boundary of Ahmedabad.

-Infrastructure wise Gujarat is is best position. The state is power surplus unlike many other states where power shortage is big issue for existing industries. The road connecting Sanand to Ahmedabad on southern direction and Kandla port in north is excellent. The widening work of this highway is going on speedily.

-The government is solidly backing the industry. For any industry wanting to set up a new plant in Gujarat, the entry gate is in Gandhinagar. There’s a top-down approach. And once you are through in Gandhinagar, the hierarchy at bottom level would not dare to disturb you, or delay you. The state is very sure about the types of industries it wants. If you fit in that criteria, the state provides excellent facilitation.

-Law and order situation is fantastic. Thanks to proximity to Ahmedabad and Gandhinagar, the industries feel safer here.

Sanand’s proximity to Ahmedabad.