Advantages Of Setting Up Manufacturing Units Around Hyderabad

By Author: BK Vijay
Total Articles: 50
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Hyderabad city is in Telangana State, the newest state in India. The business scenario is very much favorable for setting up manufacturing facilities in the State. Before the formation of the Telangana state, a lot of concerns were expressed about the new state being anti-business. However, in reality, the experience has been very positive. Many major new manufacturing units have come up due to the major advantages of setting up a manufacturing unit around Hyderabad.

Readily available consumption market
As the population of Hyderabad and its suburbs is approximately 1.3 crore, there is a big consumption market for the products offered by the manufacturers. A readily available consumption market is a huge plus for units setting-up a plant around Hyderabad.

Good transportation connectivity
Hyderabad has a very good strategic location in the center of India and well connected by trains, roads and has its own international airport. This is very helpful for both getting raw materials or to supply finished products within the state or outside. Due to the presence of Outer ring road and many expressways traveling to the various industrial areas is convenient.

Favourable government policies
The Telangana government has developed a good reputation for creating a favorable environment for manufacturing. It is considering one of the most investment-friendly states in India. In the latter part of 2014, the Telangana Government brought out the TS-iPASS Act, to encourage companies to start operations in the State. As per the Act, the primary approval of new businesses of the manufacturing/services sector would be given within a fortnight. And, all their subsequent proposals shall get cleared in 30 days. Here, the only basic prerequisite is that the investment of this company needs to be over Rs. 200 crore.

The Act also specifies that if a manufacturer doesn’t get any official communication, they can consider that the approval has been given. This has simplified the process of the establishment of new manufacturing entities.

Also, the Government of Telangana unveiled its IoT policy almost three years back. The aim of this is to enable an environment that is highly suitable for the growth of manufacturing plants and other businesses. Thus, it’s obvious that new factories/plants will be benefited from this policy, as well.

Abundant power and water availability
The capacity of power generation in Telangana is more than 15 GW and nearly 50 percent of that is attributable to green energy. Manufacturing units stand to gain from this favorable power situation.

Due to the current water supply from Krishna River which will shortly be enhanced by water supply from Godavari River, the water situation is abundant for the manufacturing areas around Hyderabad.

Abundant skilled workforce availability
Any manufacturing plant set up near Hyderabad can rest assured of getting a good workforce. There is an abundant supply of quality manpower – educated, technical and non-technical. While educational, technical, and vocational institutions provide a steady supply of trained local manpower. In addition, this can be supplemented with the outside workforce as Hyderabad is a preferred location for migrant labor.

Abundant land availability and many industrial clusters available
You have many industrial clusters around Hyderabad. For example, the Genome Valley is a cluster for biomedical research, while electronics manufacturers are seen in Kushaiguda, near ECIL. Likewise, Pashamylaram has many chemical and pharmaceutical businesses. The Government is presently in the process of forming more clusters specific to the manufacturing industry, not to mention the various other initiatives.

For all the reasons above, many new manufacturing units are being created and existing ones expanded around Hyderabad. While Hyderabad is famous globally for its IT outsourcing, in that industry Hyderabad gives good competition to Bangalore city. The manufacturing industry though not so much in the limelight is making rapid strides.

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