How to Start an Industry/Factory in Ahmedabad, Gujarat

Ahmedabad is a major industrial hub in Gujarat and is home to a diverse range of industries. It has one of the largest cotton textile centers in India. It is called the “Manchester of India” because of its historical significance as a center for textile production. Ahmedabad is the largest contributor to the GDP of Gujarat. Ahmedabad is known as an Industrial city of Gujarat since the pre-independence era – Ahmedabad is a major base for the pharmaceutical sector and a textile sector and a growing automobile sector. Overall, the city houses a diverse labor force of traders, students from various national level institutes, and migrant workers – serving as an attractive location for multinational corporations as well as medium and small-scale industries. Some of the other major industries in the city include chemicals, IT & ITes, and engineering. The city is also home to several small and medium-sized enterprises (SMEs) in 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.

Demographics of Ahmedabad, Gujarat

Ahmedabad is the largest city in the state of Gujarat, India. It is located in the western part of India and is well-connected to other parts of the country by air, road, and rail. The city has a well-developed transportation network, including the Sardar Vallabhbhai Patel International Airport, which connects Ahmedabad to major cities in India and abroad. The city also has a well-developed road network, including national highways and state highways, which connect it to other cities and towns in Gujarat and neighboring states: NH8, NH27, NH47, NH48, and NH64 pass through Ahmedabad connect the city to other major cities and towns in Gujarat and neighboring states, as well as to important economic and industrial centers across the country.

Read – How to Find Warehouse for Lease/Rent in Ahmedabad, Gujarat

Industries in Ahmedabad, Gujarat

Ahmedabad is a major industrial hub in Gujarat, India, with a diverse range of industries. Ahmedabad’s diverse industrial base has helped the city to become a major economic center in Gujarat and India, attracting businesses and creating job opportunities for its residents.

List of Industries in Ahmedabad, Gujarat

1. Textile Industry – Textile is one of the oldest industries in Ahmedabad. The region benefits from ideal weather and soil conditions for the cultivation of cotton. The district has seen the establishment of several textile houses, such as Arvind Ltd, one of the largest textile mills in the country today and a pioneer of denim. 
2. Drugs and Pharmaceuticals Industry – Ahmedabad is one of the key pharmaceutical clusters in India. Two of the biggest Indian pharmaceutical companies – Zydus Cadila and Torrent Pharmaceuticals – are headquartered in Ahmedabad.
3. Engineering Industries
4. Chemical Industries – This is one of the oldest industry of Ahmedabad along with the textile industry, as other industry grows in the city, this industry has grown in the city.
5. IT/ITeS and fintech Industry – The Gujarat government has worked to establish the Ahmedabad-Gandhinagar stretch as a fintech-city called the Gujarat International Finance Tec-City or GIFT City – India’s first international financial services center
6. Automobile Industries – Another growing industry in Ahmedabad is the Automobile industry with the presence of Ford Motors, Tata Motors, Honda, Mothersun Sumi, and many more companies.
7. Food Processing Industries – One of the key industries in Ahmedabad due to the availability of agricultural raw materials.
8. Renewable Energy Industry – Another promising industry taking shape in the Ahmedabad District is the power and renewable energy industry. India’s top companies like Reliance, Tata, Adani Green Energy Ltd, Torrent Power Ltd, and Adani Transmission Ltd have their head offices in Ahmedabad.

GIDC Industrial Estate in Ahmedabad, Gujarat

GIDC (Gujarat Industrial Development Corporation) is a state-owned corporation in Gujarat, India that is responsible for promoting industrial development in Gujarat and was established in 1962. GIDC has established 32 Industrial Parks in Ahmedabad, being a major industrial hub in Gujarat.

Some of the prominent ones are:

1. GIDC Naroda: Located in the northern part of Ahmedabad, it is one of the oldest and largest industrial estates in the city, housing a diverse range of industries including textiles, chemicals, and engineering.
2. GIDC Odhav: Situated in the eastern part of Ahmedabad, it is one of the most densely populated industrial areas in the city, with over 5,000 industrial units engaged in activities such as manufacturing, processing, and packaging.
3. GIDC Vatva: Located in the southeastern part of Ahmedabad, it is another major industrial estate in the city, with a focus on pharmaceuticals, chemicals, and engineering.
4. GIDC Sanand: Situated on the outskirts of Ahmedabad, it is a large industrial estate that houses over 1,500 industrial units, mostly engaged in textiles, plastics, and engineering.
5. GIDC Chharodi: Located in the northern part of Ahmedabad, it is a rapidly developing industrial estate that is home to a number of small and medium-sized enterprises engaged in activities such as manufacturing, packaging, and logistics.

Some others like GIDC Modasa, GIDC Kerala, GIDC Manjushar, GIDC Viramgam, and GIDC Idar, are prominently evident in Ahmedabad.

Read – How to Sale/Buy Industrial Land/Plot in Ahmedabad, Gujarat

Developing Industrial locations of Ahmedabad to Setup Industry

• SP Ring Road: This is a circular road that connects various parts of Ahmedabad, including GIDC estates such as Odhav and Vatva.
• Sarkhej-Bavla Road: This is a popular warehouse location that is located on the outskirts of Ahmedabad. The area is well-connected to the city’s major highways and is ideal for storing and distributing goods.
• Aslali-Kheda Cluster – Aslali-Kheda belt is one of the oldest warehousing clusters and lies on the Mumbai-Ahmedabad highway.
• Sanand-Viramgam: Sanand is a rapidly developing industrial area that is home to several large manufacturing plants. The area has several warehouses that cater to the storage needs of these industries.
• Changodar-Bagodara: The Changodar-Bagodara belt lies along the Rajkot-Ahmedabad Highway. Changodar is a popular industrial area that is located on the outskirts of Ahmedabad.
• Chhatral-Kadi-Vithalapur-Becharaji Cluster

Points to consider before setting up a factory in Ahmedabad:

Ahmedabad 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. Ahmedabad is famous for its agriculture, 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. Ahmedabad is a booming textile industry 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 Ahmedabad has a sizable labour 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 Ahmedabad may prove to be a wise investment provided the aforementioned factors are thoroughly considered and a thorough business plan is developed.

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

Government Policies for setting up a Factory in Ahmedabad Gujarat

Gujarat has a supportive environment for business and a good environment for investments. The state government offers subsidies and incentives to new businesses. You should assess the government programme and assistance available to your company.

1. 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.
2. 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)
3. Obtaining necessary clearances like Environmental clearance from the Gujarat Pollution Control Board (GPCB), Building plan approval from the Municipal Corporation, 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.
4. The factory must comply with various labor laws such as the Industrial Employment (Standing Orders) Act, 1946, the Factories Act, 1948, and the Minimum Wages Act, 1948. The factory must also register for Goods and Services Tax (GST) and obtain other necessary tax registrations.
5. The factory will be subject to inspections by various government authorities such as the GPCB, the Chief Inspector of Factories, and the labor department.

The government of Gujarat has formulated an Industrial Policy that outlines its vision and strategies for industrial development in the state. The policy provides incentives for industrial development, such as subsidies and tax breaks, and outlines the process for obtaining government approvals and permits for industrial projects. For the purchase and sale of industrial land, the government may establish certain guidelines and rules. It is advised that you seek advice from the regional government agency in charge of industrial land transactions, such as the Gujarat Industrial Development Corporation (GIDC).