Vadodara - Industry and Commerce

Industry and Commerce

Vadodara enjoys a special place in the state of Gujarat. Until the early 1960s Vadodara was considered to be a cultural and educational centre. The first modern factory (Alembic Pharmaceuticals) was established in Vadodara in 1907 and subsequently companies such as Sarabhai Chemicals, and Jyoti came up in the 1940s. By 1962 there were 288 factories employing 27,510 workers. At that time, the dominant industrial groups were chemicals and pharmaceuticals, cotton textiles and machine tools. The establishment of Bank of Baroda by Sayajirao III in 1908 also help industrial growth.

In 1962, Vadodara witnessed a sudden spurt in industrial activity with the establishment of Gujarat Refinery and Indian Oil Corporation Limited at the nearby village of Koyali. Several factors like raw material availability, product demand, skillful mobilisation of human, financial and material resources by the government and private entrepreneurs have contributed to Baroda becoming one of India’s foremost industrial centres.

The discovery of oil and gas in Ankleshwar led to the industrial development of Gujarat in a big way. The Vadodara region is the largest beneficiary in the process of this industrialisation. Gujarat Refinery went into the first phase of production in 1965. The refinery being a basic industry made vital contributions on several fronts at the regional and national levels.

In Vadodara various large-scale industries such as Gujarat State Fertilizers & Chemicals (GSFC), Indian Petrochemicals Corporation Limited (IPCL, now owned by Reliance Industries Limited) and Gujarat Alkalies and Chemicals Limited (GACL) have come up in the vicinity of Gujarat Refinery and all of them are dependent on it for their fuel and feedstock. Other large-scale public sector units are Heavy Water Project, Gujarat Industries Power Company Limited (GIPCL), Oil and Natural Gas Corporation (ONGC) & Gas Authority of India Limited (GAIL). In addition to these public sector enterprises, a number of other large-scale enterprises have come up in the private sector such as Bombardier Transportation, a Canadian company manufacturing the Delhi Metro from its site in Savli. Baroda also has quite a few established manufacturing units such as; General Motors, Siemens, ALSTOM, ABB, Philips, Panasonic, FAG, Sterling Biotech, Sun Pharmaceuticals, L&T,Schneider and Alstom Grid, Bombardier, and GAGL (Gujarat Automotive Gears Limited). There are also a number of glass manufacturing companies in and around Vadodara, including Haldyn Glass, HNG Float Glass and Piramal Glass.

The establishment of large industrial units in a region automatically brings into existence a number of smaller enterprises. Vadodara is no exception and the city and the surrounding areas are today humming with industrial activity. The industrialisation of Vadodara has attracted entrepreneurs not only from Vadodara but also from all over Gujarat and the rest of India.

In line with the 'Knowledge City' vision of the Confederation of Indian Industry, Vadodara is gradually becoming a hub in Gujarat for IT and other development projects.

Vadodara is also home to the Vadodara Stock Exchange (VSE).