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How to start a Factory/Industry in Surat, Gujarat

As India completes 75 years of independence with Azadi ka Amrit Mahotsav, the hon’ble prime minister of India has laid down a clear vision of an Aatmanirbhar Bharat. Gujarat is the most industrialist state in India with the highest contribution to the national manufacturing output. So to contribute to this vision of an Aatmanibhar Bharat, the Gujarat govt has launched an Aatmanirbhar Gujarat scheme for assistance to industries. Gujarat govt has announced lots of incentives for MSME, Large and mega industries from various sectors.

A factory is a structure or collection of structures, that is outfitted and geared towards housing industrial processes for producing goods. Creating finished goods that can be sold to consumers or used by other businesses is the goal of a factory. The main objectives of any industry are – mass production, cost-effectiveness, quality control, innovation, etc. Overall, factories are essential to the modern economy because they enable the mass production of items and satisfy customer demand for a variety of things.

setup factory/industry in surat gujarat

Surat the Diamond City of India

Surat is the second-largest commercial hub in the Gujarat and eighth-largest city in terms of population in India. Surat district is divided into ten revenue tehsils namely Choryasi, Palsana, Kamrej, Bardoli, Olpad, Mangrol, Mandvi and Surat City are the major developed tehsils in the district.

The network of transport provides seamless linkages between road, rail, and air travel. The city is connected to other important Indian cities by NH 48 and by air also. Surat is a well-liked location for business and investment because of its well-developed infrastructure and transportation networks. The city has access to all the conveniences of today, including reliable power, water, and sewage systems as well as airports, highways, and railroads. The infrastructure of the city is under the control of the Surat Municipal Corporation (SMC).

Read – How to Buy/Sell Industrial Land/Plot in Surat, Gujarat

Industries in Surat, Gujarat

Do you know The first English factory in India was established at Surat by the East India Company in 1613

Surat is mainly known for its textiles and diamond cutting & processing industries. Nowadays, It is emerging as a potential hub for the IT\TeS sector in Gujarat. Hajira and Magdalla Ports in the district provide logistic support to the industrial operations in the state with foreign countries. Surat is the second-largest producer of lignite in Gujarat.

Industrial development in the Surat district is attributed to the presence of a large number of diamond processing, textiles, and chemical & petrochemical industries.

GIDC Industrial areas in Surat:

Gujarat industrial development corporation has developed 11 Industrial areas in Surat, Gujarat. Here is the list of GIDC industrial areas in Surat are:

  1. Valod GIDC
  2. Khatodara GIDC
  3. Bardoli GIDC
  4. Nizar GIDC
  5. Olapad GIDC
  6. Katargam GIDC
  7. Doswada GIDC
  8. Pandesara GIDC
  9. Hazira GIDC
  10. Sachin GIDC
  11. Ichchapore GIDC

Read – What is (GIDC) Gujarat Industrial Development Corporation ?

Best location to setup a factory in Surat, Gujarat

As the city grows so do the prices of real estate. To set up a factory or industry, industrialists always need cheap land to set up a factory, for that he/she can go towards the outer area of the city also. There are several major roads that connect the GIDC industrial areas in Surat. One of them is NH 48, which connects Surat to Mumbai in the south and Delhi in the north. It passes through the city and provides connectivity to major GIDC industrial areas like Sachin, Pandesara, Ichhapor, and Bhestan.

  • Surat-Hazira Road: Connects Surat to the Hazira industrial area, which is home to several large industries such as Essar Steel, Reliance Industries, and L&T, passing through the Ichhapor GIDC industrial area.
  • Sachin-Palsana Road: Connects the Sachin and Palsana industrial areas passing through the Sachin GIDC industrial area.
  • A.K. Road: Connects the A.K. Road GIDC industrial area to the rest, and is also the major arterial road in Surat.
  • Kim-Mandvi Road: Connects Kim industrial area to the Mandvi industrial area and passes through the Bhestan GIDC industrial area.
buy/rent warehouse in surat gujarat

Points to consider before setting up a factory in Surat, Gujarat

Surat is located in the state of Gujarat in western India. It is well-connected to major cities through highways, railways, and airports. You should consider the location of the factory and its accessibility to transportation facilities. Land prices should not be very high to establish the industry, as it can hamper liquidity, which is a must in the manufacturing business.

Surat is famous for its diamond, textile, and chemical industries. You should evaluate the availability of resources, such as raw materials, labor, and infrastructure. Before setting up a factory in Surat, you must comply with the legal requirements like licenses and permits, registering the business, and adhering to environmental and safety regulations. Surat is a major textile and diamond hub, and there is a considerable demand for products in these sectors. You should also consider the competition in the market and the potential for growth. Also, Surat has a sizable labor force with experience in the textile, diamond, and chemical sectors as well as a highly established network of highways, rails, airports, and ports. To support your business activities, you should assess the infrastructure’s quality and availability. Thus, opening a factory in Surat may prove to be a wise investment provided the aforementioned factors are thoroughly considered and a thorough business plan is developed.

Read – How to Lease/Rent a Warehouse in Surat, Gujarat

Government policies for setting up a factory in Surat, Gujarat

Gujarat has a pro-business environment with a favorable investment climate. The state government provides incentives and subsidies for setting up new businesses. You should evaluate the government policies and support available for your business.

  1. Recently Gujarat government launched the Atmanirbhar Gujarat Industrial policy, to boost the industries in Gujarat by providing incentives to industries.
  2. The Gujarat Industrial Development Corporation (GIDC) is a nodal agency for the development of industrial estates in Gujarat and provides information on the policies and regulations for setting up a factory in Surat. Purchasing land for the factory is the first stage. GIDC or individual landowners can be contacted to purchase or lease land for this purpose.
  3. The Companies Act of 2013 mandates that the company register with the Registrar of Companies (ROC). For the firm directors, this will necessitate getting a Director Identification Number (DIN) and Digital Signature Certificate (DSC).
  4. Obtaining necessary clearances like:
  • Environmental clearance from the Gujarat Pollution Control Board (GPCB), Building plan approval from the Surat Municipal Corporation (SMC), Fire safety clearance from the Chief Fire Officer, Water and electricity connections from the respective agencies, and the Factory license from the Chief Inspector of Factories.
  • The factory must comply with various labor laws such as the Industrial Employment (Standing Orders) Act, of 1946, the Factories Act, of 1948, and the Minimum Wages Act, of 1948. The factory must also register for Goods and Services Tax (GST) and obtain other necessary tax registrations.
  • The factory will be subject to inspections by various government authorities such as the GPCB, the Chief Inspector of Factories, and the labor department.
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