Private firms set up industrial parks to meet SMEs' demand

Each could garner business worth as much as Rs 3,000 crore

In a bid to tap the growing demand from upcoming small and medium enterprises (SMEs), several private players are either planning or are already setting up industrial parks on the outskirts of Ahmedabad, Gujarat.

From Mumbai-based T Poddar Infradevelopers to Ahmedabad-based textile player Pradip Overseas Ltd (POL) and realty player N G Group, companies are setting up industrial parks ranging in size from 700,000 to 1.5 million sq yards. While several parks are being developed by private companies on their own, some are being set up in association with the Gujarat Industrial Development Corporation (GIDC). "The demand for industrial parks among SMEs is increasing, which has resulted in the increased supply. There are some players who are working with us for setting up industrial parks in the public-private-partnership mode," said a GIDC senior official.

A majority of the upcoming industrial parks are being set up on the Bavla-Changodar road, around 30-40 km away from Ahmedabad, while the rest are coming up on the Sanand-Viramgam road.

"We have been observing the gradual growth in demand from among SMEs, especially in the engineering, auto and pharma sectors, for industrial parks. This is also because not many new GIDC estates have been set up. Hence, private players like us are grabbing the opportunity," said a senior official at T Poddar Infradevelopers.

Typically, industrial parks are being set up for investments of anywhere between Rs 50 crore and Rs 150 crore, depending on the size of the park. For instance, while T Poddar Infradevelopers is looking at an industrial park of 700,000 sq yards that will house 50-60 SME units, POL's Bhamsara Industrial Hub is spread across 1.8 million sq yards, with over 100 SME units in sectors like textiles, engineering, auto ancillaries, logistics and warehousing.

According to J S Negi, director and technical advisor at POL, when fully completed in the next five years, the company expects to attract roughly Rs 3,500 crore worth of investments, and will generate over 10,000 jobs for skilled and unskilled workers.

"Our industrial park is coming up on the Bavla-Changodar road. However, combined with the Sanand-Viramgam road, both regions are attracting SME investments, since there is an ecosystem of large companies also developing around these areas. Plus, the Bavla-Changodar road is situated between Ahmedabad and the Dholera investment region," said Negi.

Even the Gallops Industrial Park being set up by the N G Group, which was earlier planned as an SEZ, is coming up on the Bavla-Changodar road and aims to tap SMEs' demand for industrial space.

Meanwhile, according to industry players, each of the industrial parks could garner business worth over Rs 3,000 crore.