How to Start Factory/Industry in Vadodara, Gujarat

Vadodara, which is often referred to as Baroda, has a significant cultural and historical past. It originally served as the seat of the princely state of Baroda and was governed for more than two centuries by the Gaekwad family. Vadodara has a robust industrial foundation. The Industrial sector in Vadodara is diverse and includes several large-scale industries. The city is home to several public sector units such as Gujarat Refinery, Indian Oil Corporation, and Gujarat Alkalies and Chemicals Limited. The private sector is also well-represented in Vadodara, with several large companies such as Reliance Industries, Bombardier Transportation, and Siemens having a presence in the city. It also has several industrial estates such as GIDC (Gujarat Industrial Development Corporation) and VSEZ (Vadodara Special Economic Zone) that provide infrastructure and facilities to industries.

A building, or group of buildings, that is outfitted and designed to house industrial production activities is known as a factory. The objective of a factory is to produce finished goods that can be sold to consumers or utilized by other enterprises. Any industry’s primary goals are mass manufacturing, cost efficiency, quality assurance, innovation, etc. In general, factories are crucial to the modern economy because they allow for mass manufacturing of goods and meet a wide range of consumer demands.

 The city serves as a significant hub for the software and IT sectors. It has good access to other Gujarati regions as well as other significant Indian cities. It features a domestic airport that links it to important Indian cities, as well as an advanced rail and road system. NH-8, NH-48, NH-64, NH-148B, and NH-751 are a few of the significant national highways that connect Vadodara.

Read – How to Buy/Sell Industrial Land/Plot in Vadodara

Industries in Vadodara, Gujarat

With a wide variety of businesses, Vadodara is a significant industrial center in Gujarat, India. Vadodara’s broad industrial base has contributed to the city’s growth into a significant economic hub in Gujarat and India, luring companies and generating employment opportunities for its citizens. Vadodara contributes 35% of India’s power transmission and distribution equipment manufacturing. Some of them are :

Here is the List of Industries in Vadodara, Gujarat

1. Chemicals Industry in Vadodara – Deepak Nitrite, Parikh Industries, Linde Engineering India, and Gujarat Alkalies and Chemicals Limited
2. Petrochemicals Industry in Vadodara – Gujarat Refinery of Indian Oil Corporation, ONGC, GAIL
3. Heavy Engineering Industries in Vadodara – Vadodara Manufacturing Division (Formerly IPCL) of Reliance Industries Limited,
4. Railway Coach Manufacturing Industry in Vadodara – Alstom, Siemens, Voltas, Bombardier Transportation, and New generation rollingstock are a few companies that have established their plant in Vadodara and manufacture Railway and Metro Coaches.
5. Information and Technology Industries in Vadodara – TCS, Infosys, Wipro
6. Power Transmission & Manufacturing Industry in Vadodara – Vadodara contributes 35% of India’s power transmission and distribution equipment manufacturing.
7. Automobile Industries in Vadodara – Gujarat Automotives, Schaeffler India, Apollo Tyres, General Motors India, Ceat Tyres, Alstom, Hero MotoCorp, NBC Bearings, Gromax Agri Equipment
8. Food Processing Industries in Vadodara
9. Pharma Industries in Vadodara – Alembic Pharmaceuticals Ltd, Bharat Parenterals LTD, Sun Pharmaceutical Industries Limited, C. Elysium Pharmaceuticals Ltd This is a small list of the pharma industry in Vadodara. Vadodara holds a key position in the pharmaceutical industry of Gujarat, as many small and big pharma companies are located in Vadodara.
10. Defence Industry In Vadodara – Tata Advanced Systems Limited, a subsidiary of Tata Group and Airbus joint venture, has set up a C-295 transport aircraft manufacturing facility at Vadodara. This project will make Vadodara a defense manufacturing hub. The first “Made in India” aircraft is expected in September 2026.

GIDC Industrial areas in Vadodara, Gujarat

The GIDC Industrial Area in Vadodara has played a significant role in the economic growth of Gujarat and India as a whole. The area provides ample employment opportunities to people in and around Vadodara and also contributes significantly to the state’s and the country’s GDP.

1. Makarpura GIDC: It is one of the oldest and largest industrial estates in Vadodara, spread over an area of 716 hectares. It is home to more than 2,500 manufacturing units, including industries such as engineering, electrical, chemical, pharmaceuticals, and textiles.
2. Vaghodia GIDC: Located on the outskirts of Vadodara, spread over an area of 640 hectares. It is home to several large-scale industries, including chemical, pharmaceutical, and engineering industries.
3. Nandesari GIDC: Located about 15 km from Vadodara city, spread over an area of 1,000 hectares. It is home to more than 1,300 manufacturing units, including industries such as pharmaceuticals, chemicals, plastics, and engineering.
4. Por GIDC: Located on the Vadodara-Halol highway, spread over an area of 1,274 hectares. It is home to several large-scale industries, including automobile, engineering, and pharmaceutical industries.
5. Manjusar GIDC: Located on the Vadodara-Savli highway, spread over an area of 1,400 hectares. It is home to several large-scale industries, including chemical, engineering, and pharmaceutical industries.
6. Savli GIDC: Located on the Vadodara-Savli Highway, savli is the largest industrial area of Vadodara.

These GIDC Industrial Areas in Vadodara provide ample employment opportunities to the local population and contribute significantly to the state’s and the country’s economy.

Read – How to Find Warehouse for Rent in Vadodara Gujarat

Best Location to Setup Factory/Industry in Vadodara, Gujarat

Makarpura GIDC, Savli GIDC, Halol GIDC, Manjusar GIDC, and Waghodia GIDC are some of the best industrial locations in Vadodara for setting up a factory.

Apart from the GIDC industrial estates, there are also some other locations in Vadodara that are suitable for setting up a factory. Here are some of the top locations:

1. Karjan: A fast-developing industrial area located about 30 kilometers from Vadodara city, well-connected to major cities and ports, and has a good infrastructure. It is suitable for industries such as chemicals, engineering, and pharmaceuticals.
2. Por: A rapidly growing industrial area located about 10 kilometers from Vadodara city. It is situated on the National Highway and is well-connected to major cities and ports. Por is suitable for industries such as engineering, textiles, and plastics.
3. Nandesari: An established industrial area located about 10 kilometers from Vadodara city. It is well-connected to major cities and ports and has a good infrastructure. Nandesari is suitable for industries such as chemicals, engineering, and pharmaceuticals.
4. Chhani: Well-developed industrial area located about 5 kilometers from Vadodara city. It has good connectivity to major cities and ports and is suitable for industries such as textiles, engineering, and plastics.

Points to Consider Before Setting up a Factory in Vadodara

Vadodara 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. Vadodara 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 Vadodara, you must comply with legal requirements like licenses and permits, register the business, and adhere to environmental and safety regulations. You should also consider the competition in the market and the potential for growth. Also, Vadodara has a sizable labor force with experience in the manufacturing, engineering, 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 Vadodara may prove to be a wise investment provided the aforementioned factors are thoroughly considered and a thorough business plan is developed.

Read – How to Start an Industry/Factory in Ahmedabad, Gujarat

Government Policies for Setting up a Factory in Vadodara

Gujarat offers a favorable economic climate and an excellent environment for investments. New enterprises are given subsidies and incentives by the state government. You should evaluate the government initiatives and aid that are available to your business.

1. The Gujarat Industrial Development Corporation (GIDC) is the central organization for the development of Gujarat’s industrial estates and offers details on the rules and guidelines for establishing a factory in Vadodara. The initial step is to buy the factory’s land. To buy or rent land for this use, get in touch with GIDC.
2. The firm must register with the Registrar of Companies (ROC) in accordance with the Companies Act of 2013. A Director Identification Number (DIN) and Digital Signature Certificate (DSC) must be obtained by the company directors in order to complete this.
3. Acquiring all necessary permits, such as those from the Gujarat Pollution Control Board (GPCB) for environmental clearance, the Municipal Corporation for building plan approval, the Chief Fire Officer for fire safety clearance, the appropriate agencies for water and electricity connections, and the Chief Inspector of Factories for a factory license.
4. Inspections of the factory will be conducted by a number of government agencies, including the GPCB, the Chief Inspector of Factories, and the Labour Department.
5. 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.