Journalism of Courage
The story of Pimpri-Chinchwad developing into Maharashtra’s premier industrial zone has much to do with the efforts of far-sighted political leaders of the state who helped to develop the barren region into the country’s engineering powerhouse. Pimpri-Chinchwad was the laboratory where the state’s industrial policy was tried and perfected.
Soon after Independence, the young nation took steps to be self-reliant in manufacturing lifesaving drugs. The first industrial unit to come up along the Pune-Mumbai highway was the Hindustan Antibiotics factory in Pimpri in 1955.
The first public sector unit in the country, it was set up with the help of the World Health Organization (WHO) and the United Nations Children’s Emergency Fund (UNICEF) to manufacture lifesaving drugs like penicillin, amoxycillin and anti-fungals. Hindustan Antibiotics soon became the powerhouse for the production of drugs.
This was followed by the shifting of the anti-venom unit of Haffkine Bio-pharmaceutical Ltd from Mumbai to Pimpri. Located close to each other, the two were the first industries to come up along the then narrow Old Pune-Mumbai Highway in the state.
The real impetus for growth, however, came in the 1960s when Yashwantrao Chavan became the first chief minister of the state. Often referred to as the architect of modern Maharashtra, Chavan had taken to industrialisation to develop the nascent state. He is credited to have scripted the first industrial policy of the state and to have created the Maharashtra Industrial Development Corporation (MIDC) to provide the necessary infrastructure for industries.
Anant Sardeshmukh, former director general of Mahratta Chamber of Commerce Industries and Agriculture (MCCIA) pointed out how Maharashtra was perhaps the first state to come up with a dedicated body for the creation of industrial infrastructure.
Soon after Chavan became the chief minister, the barren stretch between Pune and Mumbai gained the attention of industrialists who were looking to shift their base from Mumbai. The financial capital was getting crowded for many of the units which wanted to expand their manufacturing base.
“Mumbai (Bombay as it was known then) was becoming too crowded and thanks to the industrial policy developed by the state government, many wanted to increase their production capacity. The old highway provided excellent connectivity. Among the first to set up base in the area was Bajaj Automobile Limited (BAL) and Tata Motors (known as Telco back then),” Sardeshmukh said.
Bajaj set up its two units for two-wheelers and three-wheelers in Akurdi while Tata started their production of heavy commercial vehicles in the area. Along with them, home-grown companies like Finolex also started their offices in Pimpri.
Apart from good connectivity with Mumbai, another factor that played in favour of Pimpri-Chinchwad was its proximity to the College of Engineering, Pune (COEP) – an institute providing quality education and trained manpower for the industries.
By then, Chavan had finalised the industrial policy, which saw incentives being offered to industries to set up production centres in the state. Another advantage that the state offered was the MIDC industrial plots, complete with electric, water and road connectivity. Sardeshmukh pointed out that Pimpri-Chinchwad was the first industrial area developed in the country.
These industrial plots served as the base for secondary growth, which saw the vendor base of the original equipment manufacturers (OEMs) setting up shop. “Thus tier-1, 2 and 3 vendors came up in the plots which saw over 3,000 acres of MIDC areas in Pimpri-Chinchwad and Bhosari developing into a bustling industrial zone,” he said.
As OEMs came up, the need was felt for vendors who would supply spare parts to them. The bigger companies encouraged the growth of local entrepreneurs who in turn got their own suppliers. In the Pimpri-Chinchwad and Bhosari MIDC area, this chain reaction led to around 14,000-15,000 units being set up to complete the ecosystem of the automobile world.
Abhay Bhor, president of the Federation of Small-Scale Industries, talked about the 1970s as the tipping point which saw the automobile industry firmly setting up presence in the area. Prior to that, Bhor pointed out, the small-scale firms were into chemical and rubber industries, supplying raw material. However, as Bajaj and Tata Motors started production, the newer small-scale industries were in tune with the automobile sector. While the OEMs were located outside the MIDC area, their vendors were set up within the MIDC area.
The 1970s saw another spurt of growth with Swedish companies coming up along the Old highway. Companies like Valcun Laval (now Alfa Laval), Sandvik and SKF came up almost in the same line. “Of course, the already existing vendor base in the MIDC area helped these companies to zero in on their new place of operation,” said Sardeshmukh. With a firm vendor base, the entry of MNC automobile giants was a logical outcome. To work in the units, skilled, semi-skilled and unskilled labour was necessary. Engineering colleges in Pune supplied the first, while the need for the second and third triggered migration from many parts of the state. Workers from Marathawada set up their own colonies in various parts of the township. At present, around 13-14 lakh employees work in the 11,000-12,000 small and medium-scale units in the area.
The development of Chakan, Abhay Bhor said, happened in 2007 when industrial plots in Pimpri-Chinchwad and Bhosari were too crowded to accommodate newer players. Sopanrao Bhor, Abhay’s father, had petitioned the government to develop Moshi, Chakan as an industrial area. “His logic was simple – these spots were near the existing area and had good connectivity. The proposed international airport was supposed to come up in this area which would have allowed for more connectivity,” he said.
At present, Pimpri-Chinchwad has over 600 major industries; the total investment in the sector is well over Rs 20,000 crore and more than 20 lakh people are employed in the region.
