How to Start Industry/Factory in Vapi, Valsad, Gujarat

Vapi is known by multiple names due to its industrialization like Vapi the Chemical City, and Vapi the Paper City because the chemical and paper industry share in total industries in Vapi is approx 80%. Vapi is an industrial city located in the Valsad district of Gujarat, India. It is known for its extensive industrial development and is considered one of the largest MSME industrial hubs in Gujarat. The city has a well-established presence of factories and industries across various sectors. Some of the prominent industries and sectors present in Vapi include – Chemical and Pharmaceutical Industry, Textile Industry, Paper and Packaging Industry, Engineering and Manufacturing Industry, Plastic and Rubber Industry, Agrochemical Industry, etc. In addition to this Vapi is an excellent location for warehouse and logistics. The key factors contributing to the industrialization of Vapi include its strategic location, favorable government policies, and access to transportation networks.

Vapi City is an industrial town located near the banks of the Daman Ganga River surrounded
by the Daman and Diu, and Dadra Nagar Haveli. It is a part of the industrial belt known as the Golden Corridor starting from Ahmedabad and extending to Vapi. The corridor is known for its immense development of manufacturing facilities. Vapi majorly evolved as a chemical and chemical products manufacturing hub. Vapi has a geographical advantage in terms of connectivity as NH 48 and Silvassa Road are two major roadways cutting through the city. NH 48 is a part of the golden quadrilateral and passes through Vapi city, connecting it to the key metro cities of Mumbai and Ahmedabad.

Industries in Vapi, Valsad, Gujarat

Vapi is famous for its Chemical industries and Small scale industries. There are approx 8000 small-scale industries in Vapi, Valsad, Daman, and Silvasa. Today, about 70% of the total industries in this industrial region are chemical plants, mainly for chemical distillation and the production of pesticides, dyes, dye intermediaries, and paints. Vapi has the maximum number of Kraft paper & duplex board paper mills in India.

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

Vapi has the largest of its kind in Asia and one of India’s biggest effluent treatment plants in terms of capacity, treating the pollutants from these industries before the effluent is released into the river.

Here is the list of industries in Vapi, Gujarat

1. Chemical Industries in Vapi, Gujarat – Bayer Vapi Pvt Ltd, United Phosphorus Ltd., Supreet Chemicals Pvt Ltd., Sarna Chemicals, Kampun Polymers, Arti Industries Ltd.,
2. Pharmaceutical Industries in Vapi, Gujarat – ZEN Pharma, Unimark Remedies Ltd, Sun Pharmaceutical Industries Ltd, Vital Healthcare, Umedica Laboratories PVT LTD
3. Textile Industries in Vapi, Gujarat – Alok Industries, Welspun Terry Towels, Century Textiles, GHCL, and Raymonds Limited
4. Paper & Packaging Industries in Vapi, Gujarat – Elson Packaging, Mitsu Inks Pvt. Ltd, Prime Print & Packaging, Crown Packaging Industries, Jbf Industries Limited
5. Rubber Industries in Vapi, Gujarat – Lathia Rubbers, Toray Kusumgar Advanced Textile, SP Rubber
6. Plastic Industries in Vapi, Gujarat – Sangir Plastics, Komata Plastic, Shree Tarpaulin Industries, Trisha Plastic
7. Agro-Based Industries in Vapi, Gujarat
8. Engineering in Vapi, Gujarat

Best location to Setup an Industry/Factory in Vapi, Valsad, Gujarat

 Some of the prominent industrial locations in Vapi:

• GIDC Vapi: The GIDC estate in Vapi is a well-established industrial zone, housing a wide range of industries, including chemical manufacturing, textiles, engineering, pharmaceuticals, and more. It offers a favorable environment for industrial activities.
• GIDC Pardi: GIDC Pardi is a good location to buy industrial land in Vapi. Located on the outskirts of Vapi, it offers ample space for industrial development and is well-connected to NH 48, and provides a favorable environment for industries.
• GIDC Sarigam: Situated near Vapi, is a prominent industrial estate known for its chemical and pharmaceutical industries. It has good connectivity to major cities and ports, making it an attractive location for industrial plots
• Valsad GIDC: The Valsad GIDC is an industrial estate that includes warehouses and manufacturing units. It offers a favorable business environment and is well-connected to Vapi and other nearby cities. Many companies have set up their warehousing operations in this area to leverage the strategic location and infrastructure facilities.
• Vapi-Silvassa Road: This stretch connecting Vapi and Silvassa has witnessed industrial growth in recent years. Several factories, including manufacturing units, warehouses, and logistics companies, have been established along this corridor.

When considering setting up a factory in Vapi it is advisable to consult with local industrial associations, real estate agents, or industrial development authorities for the most updated information.

Read – How to Lease/Rent Warehouse in Vapi, Valsad, Gujarat

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

• Conduct a thorough feasibility study to evaluate the viability of setting up a factory in Vapi, considering market demand, competition, availability of resources, labor availability, and potential risks.
• Familiarize yourself with the industry regulations, permits, and licenses required for your specific industry,  environmental regulations, labor laws, etc.
• Assess the infrastructure in Vapi, including the availability of land, utilities (water, electricity, gas), transportation networks, and connectivity (road, rail, port).
• Availability of skilled labor in Vapi. Consider the workforce’s expertise in the industry to ensure a sustainable labor pool.
• Analyse supply chain and logistics – the proximity of suppliers, raw material sources, and distribution networks, services for transporting goods to and from Vapi.
• Check target markets and accessibility to transportation routes. Vapi’s proximity to major cities like Mumbai and Ahmedabad can be advantageous for reaching domestic and international markets.
• Identify potential risks and challenges associated with setting up a factory and long-term growth potential. Factors such as upcoming infrastructure projects, government initiatives, and industry trends are important for the sustainability and scalability of the factory.

Government policies for setting up a factory in Vapi, Valsad, Gujarat

1. The Gujarat Industrial Development Corporation (GIDC) is the key organization for the development of Gujarat’s industrial estates and offers details on the rules and policies for establishing a factory in Vapi. The initial step is to buy the factory’s land. To buy or rent land for this use, get in touch with GIDC or specific landowners.
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. 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 plant is required to abide by many labor laws, including the Industrial Employment (Standing Orders Act), the Factories Act, and the Minimum Wages Act, all of which were passed in 1948. The factory must also acquire the necessary tax registrations, including the Goods and Services Tax (GST) registration.
5. Various government agencies, including the GPCB, the Chief Inspector of Factories, and the labor department, will inspect the factory.