Business and Economy of BharuchBharuch is situated near the Gulf of Khambhat in Arabian Sea and towards southern part of Gujarat. The district has 8 talukas, of which the major ones are Bharuch (District headquarter), Jambusar , Ankleshwar, Valia, and Jhagadia. In ancient times, this city was known by various names like Bharakuccha, Bhrigu Kaksha, Bhroach, and Bhrauch. During the British rule the city was mentioned as Broach. Bharuch has now become one of the major commercial hubs in the state of Gujarat in recent times.
Overview of Bharuch's EconomyBharuch's economy is largely dependent on the industries in the town. The city is loaded with various industries like cotton, fertilizers, dairy products, dyes, textiles, and paints. Gujarat's biggest liquid cargo terminal is also located here in Bharuch. The main focus industry sectors are Chemicals,petrochemicals and pharmaceuticals, Engineering, Ports and ship building and Textiles. It also has many reputed multinational companies like Welspun Stahl , Videocon, Reliance, BASF etc. Bharuch has always been flourishing because of its situation on the Narmada River. Although water tends to be deficient in Gujarat, one never finds hardship in getting water in Bharuch.
Thus, agriculture and other commercial activities have prospered in Bharuch. Due to peculiar colour of the soil here that is optimal for cotton cultivation, Bharuch is sometimes also known as 'Kanam Pradesh' i.e black soil land. It is also a central halt point for many villages spread around its boundaries. As a result a lot of people from these small villages come to Bharuch when they want to shop for new accesories or make a major purchase. Thus, there has been a rise in the retail sector in the city and there are new shopping malls and multiplexes opening up all over the place.
Traditionally, Bharuch has been the hub of the peanut processing and marketing industry with a well established brand name all over the country. Mostly all of the peanuts are not grown in Bharuch itself but the best of the crops from neighbouring regions are brought to Bharuch for processing. A local resident and businessman, Mr. Kirit P Modi, holds the Intellectual Property rights(IPR) for manufacturing roasted salted peanuts in a hygienic process. It is also the place of the Bandhni method of clothing design and is well known for this traditional art form. Also during the last decade or so, a large section of population has moved to countries like Africa, United Kingdom, parts of Europe and United states of America. This in turn brings some economical jump to the local businesses as people come back for vacations & spend their earnings here. Off Late, these retiring migrants have been returning to Bharuch and building new houses giving the economy a lift up.
Economic History of BharuchThe district first came to limelight in 1960, with the buddig of an oil well n Ankleshwar anticline in february 1960 which had oil and natural gas reserves. However , due to its non impact on the districts economy, it was considered as a backward district in 1971 by the central government. Along with this declaration by the central government also came tax exemptions, subsidies, package of industrial facilities in the form of industrial estates etc that attracted lot of small industrialist to this district. The infrastructure facilities also developed gradually in the district which then boosted the industrialization of the district. It gathered momentum within 3-4 years of incentive declaration.
Role of Dahej Port in Boosting Bharuch EconomyIt has made significant contribution to speed up the industrial growth in the Bharuch district. It is operated by Gujarat Maritime Board (GMB) and many port based industries such as IPCL Birla Copper have developed their captive jetties at Dahej Port. Around INR 7,000 million (USD 171 million) has been invested in the development of this region.A dedicated Chemical terminal has been developed by GCPTCL at Dahej.
It also has the first LNG terminal of the country developed by Petronet LNG Ltd. It spreads over 5,000 hectares of land and with superb access to entire north west Indian hinterland. It is also strategically situated at a distance of around 400 km from Mumbai . The anchorage is at a distance of 5 km from the old port and 6 km from a proposed container terminal site in Jageshwar, Bharuch. The port has cargo handling capacity of around 22 MMTPA.The presence of existing industrial estates such as Panoli , Bharuch and Ankleshwar has complemented the location attraciveness of Dahej. Products handled by the port for import include coal & coke, fertilizers, coconut oil , ammonia,rock phosphate naphtha, copper concentrate, propylene, ethylene, profane and methanol, while the commodities for export include soya beans and phosphoric acid.
Dahej has been identified as a core area for large scale industrial development by the Government o Gujarat. Also Dahej has been identified as PCPIR to boost the growth of the industry. Dahej is a perfect location in Asia to serve central , west and north India as it is centrally located within the industrial belt. It is also an ideal location to serve foreign countries such as North America, Middle East, Europe and Africa.
Industrial Profile of BharuchBharuch is a fierce industrial base in sectors as diversified as drugs & pharmaceuticals, chemicals & petrochemicals, ports & ship building and textiles. Several private business groups and public sector companies have their presence in Bharuch.
There are several mineral based industries in Bharuch district. Crushing units are developed in Jhagadia & Valia taluka while bricks manufacturing units are in Ankleshwar, Bharuch, Amod & Jambusar Talukas. Exemplary port connectivity with the existence of Dahej port makes it an investment harbor in port & ship building activities. Many key private players have grown their facilities in and around Dahej port including Petronet LNG Ltd. and Indo-Gulf, Gujarat Chemical Port Terminal Company Limited (GCPTCL). Petronet LNG Ltd which is one of the fastest growing companies in the Indian energy sector, has established country's first LNG receiving and regasification terminal at Dahej. Dahej is considered nowadays to be fastest growing industrial area with companies like Adani, ONGC, GNFC, First carbon, indofil, ABG Shipyard, Reliance, Birla copper. The Dahej Port which is operated by Gujarat Maritime Board (GMB), has made substantial contribution to facilitate industrial growth in the district
There are about 16,524 registered industrial units in Bharuch district. Over 11,500 units of small and medium enterprises (SME) involved in different fields such as textiles ,Pharmaceuticals, chemicals and petrochemicals, etc. are present in the district. Textiles , Chemicals and engineering are the three major Small Scale Industry sectors present in Bharuch district according to Industrial Entrepreneurial Memoranda (IEM) filed from1988 to 2007. Bharuch has also edge as it has Gujarat's biggest Liquid cargo terminal.
Ankleshwar is the major industrial center in Bharuch with over 70 medium and large scale industries and it witnesses a large number of business activities. Ankleshwar has shown substantial contribution in the development of the district as it is a major industrial center. Today, Bharuch is one of the most heavily industrialized areas, not only in Gujarat but all over India as a whole with many large chemical plants producing dyes , fertilizers, paints, dairy products, textiles, and cotton. GNFC Ltd. ,a very large fertilizers, chemicals co. is also located in Narmadanagar in Bharuch since 1976.
Mineral Industry of BharuchBharuch has 52 % of the state’s lignite and 92 % of silica sand is also being produced in this district. It also has several mineral based industries. The Government of Gujarat has envisioned a specific policy initiative to lure investment in mineral based industries and mineral exploration. The policy comprises of steps to upsurge mineral production and strengthen exports of value added minerals. Special attention is paid to the rare occurring mineral such “ Agate” which is available only in Bharuch district in India.
Consultancies in BharuchBharuch is a highly industrialised district with some major companies having their nits in this district and thus the requirement of qualified and skilled manpower. These consultancies help in finding the suitable candidate for a particular position which makes the job of industrial units much easier. The list of few consultancies in Bharuch includes
Shop No 1, Sima Complex,
Near Sima Marble,
Bharuch - 392150
202, Panchvati Apartment,
Bharuch - 392011
Global Consultancy Placement Services
Shop No 1, Hirenium Building,
Near Kabutar Khana,
Bharuch - 392001
Job KI Duniya Com
16 Real Plaza,
Bharuch - 392001
A-13, Gopinath Society,
Bharuch - 392001
Shree Rang Human Resourses
D/201, New Vd Flat,
Vd Township, Opposite Saryu Reliance Township,
Near IBP Petrol Pump,
Bharuch - 392001
Khlanat Traders & Money Changers
Near Hotel Shabnam,
Bharuch - 392001
237/238/239, Harihar Complex, 2nd Floor,
Bharuch - 392011
Divine Placement Service
Office No. 151, Rajput Strret,
Bharuch - 392020
Paradise Custom Centre
Delux Shopping Centre, St Depot, J
Bharuch - 392150
Taj Career Solutions
Bharuch's industrial environment also favours and supports growth of BPOs (bussiness process outsourcing). One such BPO in Bharuch is
315/316, 3rd Floor, Orien Arcade,
Near Inox Cinema,
Bharuch - 392011
Economy of BharuchThe econmy of Bharuch depends on the areas in and around Bharuch.There are over 815 registered industrial units in Bharuch, spawning employment for over 33,393 people. There is 20 to 30% increase in Small Scale Industries and 10% increase in Large Scale Industries every year in Bharuch District. According to Entrepreneurial Memorandum filled from 1988 to 2011, Bharuch witnessed an Investment of INR 1,03,788.64 (Rs. In Lakhs), in sectors such as metallurgical, chemicals & petrochemicals, textiles , drugs & pharmaceuticals, and engineering etc. The major investments were in metallurgical , chemicals & petrochemicals and textile industries. Dahej SEZ has exported goods of around Rs 864 crore in the financial year 2011-12. This has just been the second year of the SEZ's operation. In 2010-11, exports were Rs 429 crore. This suggests there was an increase of 75% as compared to last year. However the exports are expected to reach Rs 1,500 crore in 2012-13. Major Exportable Item includes:
- Dyes Intermediate & Chemicals
- Bulk Drugs
Investments in PipelineInvestment in the Chemical sectors during 1998-07, was approximately INR 14,680 Crore (USD 3,580.48 million) as compared to last decade’s investment of INR 10,136 Crore (USD 2,472.19 million), spawning an employment of 25,371. LNG Petronet is planning an expansion to 15mtpa, with investment of Rs 3000 Cr. Also Adani Power has proposed to develop a 2,000 MW power plant, with an investment of INR 8,000 Crore (USD 1,951.22 million) during VGGIS 2007. Torrent Power has proposed a 1200MW Gas-Based Power Plant with an investment of Rs 6000 Cr.With an investment of INR 101810 Crore (USD 24,831.71 million) , a total of 69 MoUs were signed during Vibrant Gujarat : Global Investor’s Summits (VGGIS) 2003, 2005 and 2007,in sectors such as , Agro and Food , Chemicals, Textiles and Oil & Gas while 45 MoUs were signed with an investment of INR 77,904 Crore (USD 1,90,001 million), during VGGIS 2007, providing employment opportunities for 3,18,031 persons. For investments in the chemicals & petrochemicals sector, a total of 19 MoUs were signed for during VGGIS 2003, 2005 and 2007.
Dahej PCPIR is predicted to attract investments totalling 60,000 Cr in total. Also major anchor tenant OPAL are alongside setting up existing major industrial players which include BASF, Reliance, and Birla . The PCPIR looks to provide an optimal environment for all Petro related industries. GSFC Fertiliser/Petrochemicals Plant has proposed an investment of 8000 Cr while OPAL (ONGC) Petrochemical Complex has proposed an investment of Rs 12500 Cr. An MoU for INR 22,000 Crore (USD 5365.85 million) was signed by Sterling Biotech to set up SEZ.
For expanding its newly built manufacturing facility for in Bharuch district, Lloyd Group has proposed to invest Rs 200 crore. The group authorized first phase of the unit and it has already bought the desired land for the phased expansion. BASF India Limited is investing about Rs 1,000 crore on a new chemical production facility at Dahej and this project is predicted to be commissioned by 2014.It will be an unified hub for polyurethane manufacturing and would have facilities for the manufacture of polymer dispersions for coatings and paper and care chemicals.
Economy Drivers of Bharuch
Bharuch is one of the most Industrialised district of Indias most Industrialised state .The highly industrialized towns of Bharuch and Ankleshwar, seperated by Narmada river in south Gujarat is all set to accord the status of a separate urban development authority to 302.24 sq kilometer area surrounding both the towns. The development authority would circumscribe in all 49 villages, out of which 27 villages are from Ankleshwar taluka and 16 villages are from Bharuch taluka. Mostly, it will be known as Bharuch-Ankleshwar Area Development Authority, which will have powers very much like the Ahmedabad Urban Development Authority. Also, the authority will include the area adjacent to the Petroleum, Chemical and Petrochemical Investment Region (PCPIR),which is being developed between Dahej and Bharuch as part of Delhi-Mumbai Industrial Corridor.
Dahej SEZ , passing of DMIC and Develpoment of PCPIR (Petroleum, Chemicals & Petrochemicals Investment Region) are anticipated to further boost up the investments and industrial and economic growth of the district. Bharuch is the sole producer of Silica sand and presence of a large amount of Lignite has made the district a flourishing industrial base for several industries. The Bharuch district also homes a large number of Special Economic Zone (SEZ) and Industrial estates. Recent findings of natural gas reserves and the consequent establishment of GIDC Industrial estates at Vilayat, Ankleshwar, Panoli, Jhagadiya and huge development at the SEZ of Dahej and Port looks set to aid this region attain its former glory. The twin townships of Bharuch-Ankleshwar are expecting huge money flow to them from the Jawaharlal Nehru National Urban Renewal Mission-2 (JNNURM-2).The JNNURM-2, currently being formulated by the Government of India to be enforced in the 12th Five Year Plan, will focus attention on medium-level cities and thus the twin cities of Bharuch-Ankleshwar will get priority.
Bharuch's economy and industrial expansion is at its peak and its contribution to the Indian economy is also tremendous. Thus the economy and bussinesses of Bharuch are eyed by the entire Indian nation.