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Gujarat – A growing market for cleaning business

Most of the units in Gujarat range between 500sqm and 50,000sqm in any given industrial area. Given a minimum area of 1000sqm of a production unit engaged in chemicals, Baladhandayutham of Roots Multiclean Ltd has recommended one sweeper, ride on scrubber drier, high pressure washer and industrial vacuum cleaner for maintenance of the different areas in the premises.

On an average, if 80 of the pharma companies investing in Gujarat this year set up one unit each, the minimum machines required to clean 1000sqm per unit would be to the tune of 320 machines. Hence, the total consumption of cleaning equipment in the chemical sector to clean 1000sqm area, based on the available statistics would be

Automobile & Auto ancilliary

With more than 500 auto component manufacturers, with a net turnover of around 1,500 crore (`15 billion), auto component makers will see a 20-30% growth in business with more companies coming to Gujarat.

The government also plans to set up an auto ancillary park for Sanand district and a precision engineering park in Dahej. A Special Economic Zone for auto parts is also likely to be set up in Kutch.

Tata Motors setting up shop in Sanand, was a turning point for Gujarat auto industry. Ceat Tyres was the next to follow with a manufacturing plant investing 700 crore (`7 billion). Ceat manufactures over 10-million tyres per year and has a major market share in the light truck and truck tyre market.

Ford India will set up its manufacturing unit right next to Tata Motors’ Nano factory at Sanand. Ford had sought 550 acres from the state government to set up a mother plant together with an ancillary park. This would be Ford’s second plant in India. It already has a manufacturing unit in Maraimalai Nagar, Chennai, which has an annual capacity of 200,000 units.

Maruti along with vendors, could invest up to 18,000 crore (`180 billion) in Gujarat as it looks to produce about two million units in the long run in the state.

Hyundai plans to build a diesel engine plant in Gujarat with an installed capacity of 150,000 units per annum with an investment of 400 crore in the plant which will be operational by 2013-14. GM is planning to expand manufacturing unit by investing `500 crore. German ball bearing manufacturer Schaeffler has a unit in Vadodara in Gujarat.

Maruti Suzuki is coming up with 4000 crore investment in Mehsana this year. The proposed Japanese cluster, spearheaded by JETRO, has already been given about 1,500 acres in the Becharji-Sanand belt where the new production facilities of Maruti Suzuki and Ford India are coming up. The state government is also believed to be keen to set up another auto cluster in this region.

Hero MotoCorp, which is also facing labour problems at its plant, has already signed an agreement for its fifth plant in Gujarat with a total capacity of 1.2 million units a year. The company plans to invest 1,100 crore in the venture. Hero MotoCorp has already acquired 130 acres out of the 250 acres proposed for the plant. The land acquisition process, which was delayed due to the Assembly elections, is back on track and the company expects to complete the work on the factory ahead of the deadline. Other domestic companies establishing units in Gujarat include Hero MotorCorp, Bajaj Auto and Hindustan Aeronautics Ltd (HAL).

There are no comprehensive figures on the number of units in the auto and auto ancillary segments, however, any auto or ancillary unit would require the following cleaning equipment to clean 1000sqm area:

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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