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Home » Professional » Housekeeping » Gujarat – A growing market for cleaning business

Gujarat – A growing market for cleaning business

In the last few years, the cleaning business is making foray into newer markets in the Tier II and Tier III cities. These untapped market segments offer scope for businesses – small and big. Following the sample survey conducted at Vadodara on the needs of Industrial Cleaning, Mohana M attempts to study the growing industries and the corresponding growth in the cleaning equipment requirement. The brief report below enumerates the number of units in each of the growing industries of Gujarat and the newer units that are likely to come in the near future. The report also specifies the industry-wise equipment required for maintaining the given premises.

In the last two decades, Gujarat is experiencing stupendous industrial development with increasing investment year on year. With an annual growth rate of over 10% pa over the past five years and industrialisation, Gujarat accounts for 16% of the nation’s industrial production and 22% of its exports.

Besides, the State is well-connected both in the domestic and international front, has sound infrastructure facilities, skilled manpower, availability of raw materials and easy off-take of industrial output.

Gujarat has 184 industrial estates established by GIDC for specific sectors such as chemicals, electronics, gems, apparels and granite. The manufacturing and engineering sector contributes over 27% to the state’s GSDP and nine per cent overall to the national engineering output. At present there are more than 30 engineering clusters and new ones emerging at Sanand-Viramgam, Mandal-Becharaji, Halol-Savli, Anjar and Santhalpur.

The State’s manufacturing industry is supported by 0.34 million MSMEs. Currently, under the Cluster Development Scheme, there are 83 product clusters, including ceramics at Morbi, brass-parts at Jamnagar, fish processing at Veraval and power-loom at Ahmedabad.

There is also considerable focus on manpower and skill-set development – there are 54 engineering and 106 diploma colleges with over 82,000 seats and 253 ITI institutes. The state has also initiated a model of skill formation training with industries.

Pharma & Chemicals

Gujarat is the ‘Petro Capital’ of India, and contributes significantly to the country’s petrochemicals production (62%), chemicals production (51%) and pharmaceuticals production (35%). Around 6,600 chemical and petrochemicals products are produced in the state.

Some of the large global and Indian chemical and petrochemicals manufacturers have facilities in the State – Gujarat State Fertilizers & Chemicals Ltd. (GSFC), Gujarat Alkalis & Chemicals Ltd. (GACL) and Gujarat Narmada Valley Fertilizers Company Ltd. (GNFC) are the largest public sector units. The domestic and multinational companies having presence in the state include Reliance, ONGC, Dow Chemicals, Cheminova, Lanxess, India Oil, Indian Petrochemical Corporation Limited (IPCL), Nirma, Essar, BASF, Bayer, Rallis, Novartis, Cadila, Aarti Group and Deepak Nitrite. (Source: Tata Strategic Management Group).

Specialty chemical industry growth typically follows the growth of key end markets including agrochemicals, paints & coatings, specialty polymers, home care surfactants, plastic additives, textile chemicals, construction chemicals, water chemicals, personal care ingredients, flavours & fragrances, paper chemicals, printing inks, industrial & institutional cleaners, rubber chemicals, etc. An increasingly urbanised India (cities are likely to comprise 40% of the population by 2030) will double the requirement for clean municipal water by 2020, and therefore, significantly increase municipalities’ usage of water treatment chemicals to treat/recycle waste water. Similarly, increased infrastructure spending by the government (The XIIth Plan recommends US$1 trillion investment in development of roads, ports, power and telecom) accompanied by growth in the real-estate industry, could result in over 15% pa growth in the construction chemicals and coatings segment.

Gujarat accounts for 40% of India’s pharmaceutical output with more than 3500 manufacturing units engaged in producing allopathic, ayurvedic and homeopathic drugs & cosmetics. Over 35% of large & medium units are from chemical industries and chemicals account for 16% of employment in the state. About 80 domestic and global pharmaceutical companies have proposed investing in Gujarat in 2013. Companies planning to set up operations in the state include Nanotech Bioscience Technologies Private Limited with an investment of 1,000 crore for a gene therapy unit near Vadodara; Ajanta Pharma with 400 crore to start two formulations projects; Epicor Pharmaceuticals and Sava Healthcare; besides the joint venture of Israel’s Teva Pharmaceutical Industries Ltd and US-based Procter & Gamble (dealing in consumer healthcare and over-the-counter (OTC) products) – PGT Healthcare – has already acquired 15 acres of land at Sanand. New Jersey based Apicore LLC and Singapore-headquartered Biosensors International has already made plans to set up manufacturing units in the state.

In a statement issued in early February this year, HG Koshia, Commissioner, Food and Drug Control Administration, said “So far, investments worth 3,500 crore have been confirmed in the areas of formulations, active pharma ingredients and medical devices.”

Following these international investments, several domestic companies – mostly from Mumbai and Pune – are lining up to set up manufacturing units in Gujarat. Mumbai-based ACG Associated Capsules, one of the largest manufacturers of pharmaceutical empty hard gelatin capsules, is planning to invest 350 crore to set up a unit.

In the last few years, the cleaning business is making foray into newer markets in the Tier II and Tier III cities. These untapped market segments offer scope for businesses – small and big. Following the sample survey conducted at Vadodara on the needs of Industrial Cleaning, Mohana M attempts to study the growing industries and the corresponding growth in the cleaning equipment requirement. The brief report below enumerates the number of units in each of the growing industries of Gujarat and the newer units that are likely to come in the near future. The report also specifies the industry-wise…

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