In the last few years, the cleaning business is making foray into newer markets in the Tier II and Tier III cities. These untapped market segments offer scope for businesses – small and big. Following the sample survey conducted at Vadodara on the needs of Industrial Cleaning, Mohana M attempts to study the growing industries and the corresponding growth in the cleaning equipment requirement. The brief report below enumerates the number of units in each of the growing industries of Gujarat and the newer units that are likely to come in the near future. The report also specifies the industry-wise equipment required for maintaining the given premises.
In the last two decades, Gujarat is experiencing stupendous industrial development with increasing investment year on year. With an annual growth rate of over 10% pa over the past five years and industrialisation, Gujarat accounts for 16% of the nation’s industrial production and 22% of its exports.
Besides, the State is well-connected both in the domestic and international front, has sound infrastructure facilities, skilled manpower, availability of raw materials and easy off-take of industrial output.
Gujarat has 184 industrial estates established by GIDC for specific sectors such as chemicals, electronics, gems, apparels and granite. The manufacturing and engineering sector contributes over 27% to the state’s GSDP and nine per cent overall to the national engineering output. At present there are more than 30 engineering clusters and new ones emerging at Sanand-Viramgam, Mandal-Becharaji, Halol-Savli, Anjar and Santhalpur.
The State’s manufacturing industry is supported by 0.34 million MSMEs. Currently, under the Cluster Development Scheme, there are 83 product clusters, including ceramics at Morbi, brass-parts at Jamnagar, fish processing at Veraval and power-loom at Ahmedabad.
There is also considerable focus on manpower and skill-set development – there are 54 engineering and 106 diploma colleges with over 82,000 seats and 253 ITI institutes. The state has also initiated a model of skill formation training with industries.
Pharma & Chemicals
Gujarat is the ‘Petro Capital’ of India, and contributes significantly to the country’s petrochemicals production (62%), chemicals production (51%) and pharmaceuticals production (35%). Around 6,600 chemical and petrochemicals products are produced in the state.
Some of the large global and Indian chemical and petrochemicals manufacturers have facilities in the State – Gujarat State Fertilizers & Chemicals Ltd. (GSFC), Gujarat Alkalis & Chemicals Ltd. (GACL) and Gujarat Narmada Valley Fertilizers Company Ltd. (GNFC) are the largest public sector units. The domestic and multinational companies having presence in the state include Reliance, ONGC, Dow Chemicals, Cheminova, Lanxess, India Oil, Indian Petrochemical Corporation Limited (IPCL), Nirma, Essar, BASF, Bayer, Rallis, Novartis, Cadila, Aarti Group and Deepak Nitrite. (Source: Tata Strategic Management Group).
Specialty chemical industry growth typically follows the growth of key end markets including agrochemicals, paints & coatings, specialty polymers, home care surfactants, plastic additives, textile chemicals, construction chemicals, water chemicals, personal care ingredients, flavours & fragrances, paper chemicals, printing inks, industrial & institutional cleaners, rubber chemicals, etc. An increasingly urbanised India (cities are likely to comprise 40% of the population by 2030) will double the requirement for clean municipal water by 2020, and therefore, significantly increase municipalities’ usage of water treatment chemicals to treat/recycle waste water. Similarly, increased infrastructure spending by the government (The XIIth Plan recommends US$1 trillion investment in development of roads, ports, power and telecom) accompanied by growth in the real-estate industry, could result in over 15% pa growth in the construction chemicals and coatings segment.
Gujarat accounts for 40% of India’s pharmaceutical output with more than 3500 manufacturing units engaged in producing allopathic, ayurvedic and homeopathic drugs & cosmetics. Over 35% of large & medium units are from chemical industries and chemicals account for 16% of employment in the state. About 80 domestic and global pharmaceutical companies have proposed investing in Gujarat in 2013. Companies planning to set up operations in the state include Nanotech Bioscience Technologies Private Limited with an investment of र 1,000 crore for a gene therapy unit near Vadodara; Ajanta Pharma with र 400 crore to start two formulations projects; Epicor Pharmaceuticals and Sava Healthcare; besides the joint venture of Israel’s Teva Pharmaceutical Industries Ltd and US-based Procter & Gamble (dealing in consumer healthcare and over-the-counter (OTC) products) – PGT Healthcare – has already acquired 15 acres of land at Sanand. New Jersey based Apicore LLC and Singapore-headquartered Biosensors International has already made plans to set up manufacturing units in the state.
In a statement issued in early February this year, HG Koshia, Commissioner, Food and Drug Control Administration, said “So far, investments worth र 3,500 crore have been confirmed in the areas of formulations, active pharma ingredients and medical devices.”
Following these international investments, several domestic companies – mostly from Mumbai and Pune – are lining up to set up manufacturing units in Gujarat. Mumbai-based ACG Associated Capsules, one of the largest manufacturers of pharmaceutical empty hard gelatin capsules, is planning to invest र 350 crore to set up a unit.
Most of the units in Gujarat range between 500sqm and 50,000sqm in any given industrial area. Given a minimum area of 1000sqm of a production unit engaged in chemicals, Baladhandayutham of Roots Multiclean Ltd has recommended one sweeper, ride on scrubber drier, high pressure washer and industrial vacuum cleaner for maintenance of the different areas in the premises.
On an average, if 80 of the pharma companies investing in Gujarat this year set up one unit each, the minimum machines required to clean 1000sqm per unit would be to the tune of 320 machines. Hence, the total consumption of cleaning equipment in the chemical sector to clean 1000sqm area, based on the available statistics would be
Automobile & Auto ancilliary
र 1,500 crore (`15 billion), auto component makers will see a 20-30% growth in business with more companies coming to Gujarat.
The government also plans to set up an auto ancillary park for Sanand district and a precision engineering park in Dahej. A Special Economic Zone for auto parts is also likely to be set up in Kutch.
Tata Motors setting up shop in Sanand, was a turning point for Gujarat auto industry. Ceat Tyres was the n
ext to follow with a manufacturing plant investing र 700 crore (`7 billion). Ceat manufactures over 10-million tyres per year and has a major market share in the light truck and truck tyre market.
Ford India will set up its manufacturing unit right next to Tata Motors’ Nano factory at Sanand. Ford had sought 550 acres from the state government to set up a mother plant together with an ancillary park. This would be Ford’s second plant in India. It already has a manufacturing unit in Maraimalai Nagar, Chennai, which has an annual capacity of 200,000 units.
Maruti along with vendors, could invest up to र 18,000 crore (`180 billion) in Gujarat as it looks to produce about two million units in the long run in the state.
Hyundai plans to build a diesel engine plant in Gujarat with an installed capacity of 150,000 units per annum with an investment of र 400 crore in the plant which will be operational by 2013-14. GM is planning to expand manufacturing unit by investing `500 crore. German ball bearing manufacturer Schaeffler has a unit in Vadodara in Gujarat.
Maruti Suzuki is coming up with र 4000 crore investment in Mehsana this year. The proposed Japanese cluster, spearheaded by JETRO, has already been given about 1,500 acres in the Becharji-Sanand belt where the new production facilities of Maruti Suzuki and Ford India are coming up. The state government is also believed to be keen to set up another auto cluster in this region.
Hero MotoCorp, which is also facing labour problems at its plant, has already signed an agreement for its fifth plant in Gujarat with a total capacity of 1.2 million units a year. The company plans to invest र 1,100 crore in the venture. Hero MotoCorp has already acquired 130 acres out of the 250 acres proposed for the plant. The land acquisition process, which was delayed due to the Assembly elections, is back on track and the company expects to complete the work on the factory ahead of the deadline. Other domestic companies establishing units in Gujarat include Hero MotorCorp, Bajaj Auto and Hindustan Aeronautics Ltd (HAL).
There are no comprehensive figures on the number of units in the auto and auto ancillary segments, however, any auto or ancillary unit would require the following cleaning equipment to clean 1000sqm area:
Textile
Gujarat Technical Textiles market was estimated around र 6,100 crore in 2011-12, contributing around 10% to the national Technical Textiles output. Currently, 1,000 plus Technical Textiles units are already present in Gujarat, with presence in all the 12 sub-sectors of Technical Textiles. There are more than 200 products classified as Technical Textiles and the units are mainly concentrated in Ahmedabad, Surat, Vadodara and Kutch. Packtech (64%), Hometech (10%), Clothtech (9%) and Indutech (7%) are the four largest contributors; together contributing around 90% of states technical textile production.
The Textile market in Gujarat is estimated at US$25 billion by 2017. Growth is envisaged to be driven by Technical Textiles which has use in more than 200 different products across sectors. The State is likely to attract at least 2,000 new units with an investment worth `10,000 crore by introducing Technical Textile Mission.
Any textile unit, to clean 1000sqm of area, would require one machine each of sweeper, scrubber drier and industrial vacuum cleaner.
Power
More than 300 power companies and over 75 solar plants are coming up in Gujarat. Of the power plants with a total installed capacity of 16,945MW coming up in the state, 6,864MW – or roughly, a third – is by the private sector.
Adani Power synchronised the fifth unit of the Mundra power plant last year, taking its total generating capacity to 4,620MW, making it the world’s largest single-location coal-fired plant in the private sector. China, Poland and Taiwan have three thermal power plants exceeding 5,000MW, making Mundra also the fifth largest globally.
Essar Power Limited’s first unit of 600MW of Salaya-1 project in Gujarat has commenced commercial operations, while the second unit of 600MW has been synchronised with the state transmission grid. The second unit is expected to start commercial production in May 2012.
The company is setting up two sub-critical units of 600MW at Salaya project with a total generation capacity of 1,200MW at an estimated investment of र 5,570 crore. Besides Salaya-I, Essar Power is also implementing two more power projects – Mahan-1 project with the capacity of 1,200MW and the 510MW at Vadinar P2 project.
Two of Tata Power’s units were commissioned last year, one of them being 4,000-MW plant of which 800-MW unit of the Mundra, the country’s first UMPP (Ultra-Mega Power project), has been commissioned. More than 10,000MW projects are under construction in Kutch, including Tata Group and Adani Group.
Some of the prominent projects of Amreli include GSPC Pipavav Power Company (GPPC), 1,050-MW gas-based power plant at Kovaya village in Amreli at an investment of `4,000 crore; Hyderabad-based Patel Energy 1,320-MW thermal power plant at Lunsapur and Lothpur villages; Torrent Power 1,000MW coal-based power plant at Rampara; Visa Power 1,320MW coal-based power plant; Videocon Industries 1,600MW thermal power project at Bherai village in Pipavav; and Sintex group, 1,720MW power plant at an investment of `8,300 crore at Lunsapur in Jafrabad.
Power plants, existing and upcoming, in Gujarat are located at Bharuch, Surat, Ahmedabad, Vadodara, Mundra, Mehsana, Jamnagar and other areas.
A power unit would require two of each – ride on sweeper, scrubber drier and industrial vacuum cleaner – to clean 1000sqm area. Taking into consideration the 300 units coming up in Gujarat, the total new project consumption of cleaning equipment would be 1800 cleaning machines for cleaning 1000sqm area of each unit and that of the 75 solar plants would be 450 machines for cleaning 1000sqm area of each unit.