SECTORS

Pune undoubtedly is an industrial powerhouse. With prominent domestic and international companies from the automobile, manufacturing, engineering, IT & IT- eS sectors setting up business in Pune, the city has evolved from a once sleepy pensioners’ town to a thriving business hub on the world map.

MANUFACTURING

From pensioners’ paradise to a manufacturing hub, Pune has seen a major wave of change. Traditionally an agricultural and trading economy, the government’s initiative to create industrial infrastructure in the Pimpri Chinchwad locality appealed to a variety of manufacturing industries. The availability of skilled manpower has always attracted investment from domestic and foreign engineering companies. Infrastructure and manpower led to the setting up of pharmaceutical and chemical companies; Serum Institute, the world’s third largest vaccine manufacturer, Deepak Fertilisers and Petro Chemicals, India’s fourth largest chemical company, to name a few

Pune’s proximity to Mumbai and its strength in research and development have constantly aided domestic and foreign investments.

A vibrant market and relative ease of doing business has also lured companies such as ITC and L’oreal and manufacturers such as LG and Whirlpool to set up local manufacturing units.

SECTORWISE DISTRIBUTION OF COMPONIES IN PIMPRI CHINCHWAD

AUTO AND AUTO ANCILLARY

Passing through various phases of ups and downs, the auto industry in Pune has been one of the fastest growing sectors. It started with the establishment of erstwhile Telco (now TATA motors) giving the impetus of growth to the Pimpri-Chinchwad area. Companies like Hindustan Motors, Premier Automobiles, Bajaj Auto, Force Motors (previously Bajaj Tempo), Jaguar and Landrover, Mahindra and Mahindra and even construction and farm-equipment major JCB have also set up their manufacturing units in Pune. The proliferation of automobile manufacturing units and component suppliers that occupy the outer peripheries of Pune, particularly Pimpri-Chinchwad, Chakan and Talegaon, have earned the city the sobriquet ‘Detroit of India’. The past five years have witnessed an investment of more than Rs. 20,000 crores in the automobile sector.
A surge in the automobile industry has led to the robust growth of the auto ancillaries sector in the Pune. The need to cater to the requirements of automobile manufacturing companies is regularly escalating the auto ancillary sector in Pune.

Products manufactured in Pune bear an identity of ‘One Global Quantity’, making these usable in any part of the world. 3 inland container depots in Pune facilitate the import and export of raw material, making it easy for manufacturing companies to procure these.

There is no shortage of quality manpower in Pune, which in turn pulsates the investment of manufacturing companies in Pune. With over a dozen manufacturers including the world’s largest forging company, Bharat Forge, Pune’s manufacturing front is growing incessantly.

IT AND IT-Es

The roots of the expansive IT industry in Pune converge back to an outsourcing company called ‘Data Conversion’, now known as ‘Patni Computers’. With the escalation of IT & IT-eS, Pune has seen a major wave of change for the industry in India. The Mahratta Chamber of Commerce Industries and Agriculture (MCCIA) laid the foundation of a mixed-use development – the International Convention Centre, that is today home to some of the world’s major corporates, IT & IT-eS companies, retail and food and beverage brands. The state government persuaded Infosys to set up base at IT industrial estate of Hinjewadi, and the rest as they say, is history. Today Pune has over 150 government and private IT parks that host Indian and global majors, medium sized companies and startups too.

FOOD PROCESSING

Pune and its peripheries today are thriving hubs of food processing units. The city is surrounded by vast tracts of arable agricultural land and is known for its agro-business. Pune’s access to agricultural produce from the surrounding regions in Maharashtra spawned a variety of food processing industries including Gits, Manikchand and Weikfield. The sector establishes vital linkages between industry and agriculture, the two main pillars of the Indian economy. The cosmopolitan nature of the city, proximity to the urbanised market, the connectivity with JNPT along with 3 inland ports, and hence the convenience of exports has intensified the sector in Pune.

Contribution of MSMEs in Manufacturing (Dec 2013)
Category Number of Enterprises Employment
(Thousands)
Investment
(Rs Billion)
Micro 22,246 96.7 12.8
Small 5,964 58.2 29.3
Medium 109 12.1 7.7
Total 28,319 167.0 49.8
Sector wise Registered MSMEs FY12
Type of Industry Number of Units Investment
(Rs Million)
Agro Based 1,409 1,904
Soda Water
Cotton Textile 62 120
Woolen, Silk, and artificial thread based clothes
Readymade Garment & Embroidery 487 496
Wood/Wooden based Furniture 357 624
Paper and Paper Products 332 722
Leather based 454 545
Chemical/chemical based 835 1,136
Rubber, Plastic and Petro based 1,398 2,133
Mineral based 802 1,725
Metal based (Steel Fabrication) 1,867 3,525
Engineering Units 1,320 4,483
Electrical Machinery and transport equipment 393 793
Repairing and servicing 571 370
Others 542 427

Source: MSME Development Institute

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