
COMMUNAL tension in Ahmedabad8217;s walled city kept them away. But now the wall of apprehension is crumbling. Business opportunism is snuffing out fears of recurring riots. The walled city is in business.
After years of hesitation, leading private banks have opened over 12 branches in the area. Banks like ICICI, HDFC and Yes Bank, are competing to penetrate into a market dominated by cooperative and nationalised banks. In an area where banking habits are best described as conservative.
Other signs of new business: McDonald8217;s, big retail outlets, multiplexes, private banks and food chains. Pizza Hut, Pepe, Frank Jefferson, Barista and several other retail chains are scouting for space to set shop.
Early this year, Big Bazar, three multiplexes, and McDonald8217;s entered the old city which till recently was dominated by small wholesalers, a strong Gujarati merchant community and a lower middle income group Muslim population.
8216;8216;It is challenging. When I decided to open a three-screen multiplex there were several doubts. Security was a concern and then there was the question whether a market that has not seen any change in the last five decades is ready for us,8217;8217; says Ashok Purohit, owner of the multiplex City Pulse. He gets about 1,200 viewers daily.
The tickets are priced much below the usual rates since multiplexes face stiff competition from the area8217;s old cinema halls. 8216;8216;People do not have deep pockets here. Getting them to a multiplex itself is a big challenge,8217;8217; says Sanjay Agrawal who runs a three-screen multiplex8212;City Gold8212;in Bapunagar, an industrial area of the city.
The residents are happy too. Development in the area has made property prices go up.
WITH a population of about 15 lakh, the old city is prime attraction for companies keen to expand in retail marketing and also those trying to make clients brand conscious, says Ranjit Basu, an IIM-Calcutta graduate who advises retail groups on strategy.
8216;8216;Companies do have apprehensions about opening malls in the old city of Ahmedabad. Till 2004 communal problems kept them away,8217;8217; he says. 8216;8216;But the idea of profit and capturing a new market was alluring so they decided to get in before anyone else did.8217;8217;
8216;8216;I am happy that finally things are changing in an area that has been stagnating, is called a zone for illegal activities and is infamous for communal discord,8217;8217; says 65-year-old Sheikh Abdul Rehman who is currently writing a book on the charms of living in the old city.
BUT breaking in into a new market is not always smooth. For discount store Big Bazar, the challenge lies in surviving with wholesalers who have been in the market for over five decades.
8216;8216;It is very tough to break in the market of wholesalers, they have developed inter-personal relations with their customers give credit and home delivery. But our pitch is that we give customers the pleasure of shopping,8217;8217; says Anand Adukia, head of operations, Big Bazar Gujarat. To make its presence felt in the area, it8217;s organising interactive sessions with customers, holding drawing competitions for children and cookery classes for women. 8216;8216;We are trying to know the taste, preferences and even the limitations of our buyers,8217;8217; adds Bharat Gandhi marketing, Big Bazar.
The banks, meanwhile, have done their research. 8216;8216;The market surveys conducted by our bank did point out that the walled city comes in the list of high-level risk areas. But in terms of daily transactions, it promises good business,8217;8217; says a senior executive with HDFC.
Regional marketing manager of ICICI bank, Vivek Nair, makes the point that every city has to looked at in totality. Clustered growth does not help. Risks are involved but caution is the key in such areas.
Caution is also necessary to ensure the area8217;s history is not lost in its leap forward. Restoration advisor to the city8217;s municipal corporation, Debasish Naik points out that the real challenge for the government is to promote business enterprises, invite corporates yet retain the colour, culture and distinct spirit of the old city.
At the moment, however, the walled city is enjoying the company of new neighbours. Eighty-three-year-old Zamina Sheikh has made her first trip to a mall. 8216;8216;Everything is good here. My children enjoy shopping here but I still like shopping amidst the hustle bustle of the city.8217;8217;