Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & BehrampuraProject Report on “Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda, Odhav & Behrampura” Gujarat Industrial Development Corporation By Manish Joshi (B- 18) Mitali Thacker (A-55) Faculty Guide Prof. Tejal Andharia Prof. Jatin Cristie Company Guide Mr.Ganesh Raman Ms. Dipti Maratha MBA Program Amrut Mody School of Management Page 1 Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura Project Report on “Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda, Odhav & Behrampura” July 2010 Report submitted in partial fulfillment of the requirements of the summer internship training undertaken for the MBA program Page 2 Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura DECLARATION We Manish Joshi & Mitali Thacker, hereby declare that this project, titled “Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura” is our own original work and not a plagiarized. The project is an outcome of our learning’s during the two months period starting from 12 th April 2010 to 7th July 2010 at Gujarat Industrial Development Corporation, Gandhinagar. This project is made as an integral part of my curriculum and will not be shared with anyone; the usage of this project is only for academic purpose. PLACE: Gandhinagar DATE: 7th July 2010. Manish Joshi Mitali Thacker Page 3 Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura Certificate It is hereby certified that the work incorporated in the report entitled “Management of Estates, Up-gradation of Infrastructure, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura ” submitted by Mr Manish Joshi & Miss Mitali Thacker, comprises the result of independent and original study carried out by them in partial fulfillment of the Summer Internship Training. The material which may have been obtained (and used) from other sources is duly acknowledged in the report. The work mentioned above is carried out under my guidance. Date: 26\06\2010 Place: Ahmedabad Signature of the Faculty Mentor Prof. Jatin Christie Andharia Prof. Tejal Page 4 GIDC has created 182 functional industrial estates spread all over Gujarat providing the entrepreneurs with industrial infrastructure which serves as a solid base for the natural outcome of growth. the management practices experience in its fullest sense. The knowledge which we got at GIDC one of the largest government bodies in India.Odhav & Behrampura PREFACE One of the most important characteristic of Gujarat Industrial Development Corporation (GIDC) is that it truly believes in a win-win business philosophy. We had a chance of learning many practical approaches. We have heard the famous saying ‘experience is the best teacher’. Page 5 . Naroda.Management of Estates. Study of Operations and Maintenance at Vatva. and get some practical experience about their work and working condition. As a student of MBA we have studied only theoretical portion in the classroom. With this in mind. We have learnt many aspects required to mould the personality of a management student which can’t be studied by classroom study. has given us sufficient knowledge to fill the gap between theoretical and practical knowledge. On completion of this project we could really feel the depth of the meaning conveyed by the saying. Professionalism of management is very necessary. such visit provides us an opportunity to interact with people who work in those units. but after taking up this project work. Therefore industrial training is to make us more intelligent in the management of market. We had a great opportunity to interact with different officers of different departments. To read the story of a play and practically doing it has same difference that is between the study in the classroom and practically seen there. we have understood very well. Moreover. Gandhinagar under the guidance of Mr. Study of Operations and Maintenance at Vatva. This was very good experience throughout our entire academic career to work in a company and also a wonderful opportunity to apply all the learning’s of the years of education we have taken to improve our performance. We are also highly indebted to Miss Harpreet and Human Matrix for their excellent support throughout our Internship Program and supporting us with the learning. Page 6 . Naroda. We also want to express my gratitude to the team of Gujarat Industrial Development Corporation for their co-operation and helping us with all our doubts.Odhav & Behrampura ACKNOWLEDGEMENT We had one of the best times of our life undergoing training at Gujarat Industrial Development Corporation. it has aided us in many manners for the internship. We are thankful to Ahemdabad Education Society and our mentors Prof. Jatin Christie and Prof. Ganesh Raman and Miss Deepti Maratha. Tejal Andharia and all other faculty members for the teaching we had received during the First year of my course.Management of Estates. and here where the firm like GIDC comes into picture. Naroda. Management Estates. is not sufficient to provide employment to large section of the society. Naroda.Up-gradation of Infrastructure. though increasing at steady rate. Petrochemicals investment investment region) Under the project title.Naroda. Also secondary data from region )and Dholera SIR.Management of Estates. Chemical.Odhav of these estates.(special Page 7 . has a great learning opportunity to offer to GIDC. almost 60 % of Indian population is dependent upon agriculture for their employment. Which creates huge pressure on land. Additionally suitable data collection method. which as Established Under GID act 1962. Planning commission of India has also emphasized the need of growth in Infrastructure sector.Odhav & Behrampura EXECUTIVE SUMMARY According to economic survey of India 2009-10. Study of Operations and Maintenance at Vatva. various persons-in-charge at For questionnaire based final study Our respondent were mainly Industries association of the estates. we were assigned the responsibility to identify the gaps in the practice followed by GIDC in the maintenance suggesting the area of improvement for that we begin the our study by doing pilot study in these estates to define and understand the problem which was ambiguous in nature. field officers of the GIDC and even HODs of the various department at GIDC were consulted. Findings of the pilot study helped us to determine the best research design and located at this estates. Odhav were the few of the earliest estates build up not only in Gujarat but also in India. &Behrampura. At the same time employment opportunity in Industrial sector in India. Study of Operations and Maintenance at Vatva. considering the fact learning from the past can help the firm to improve the future while dealing with the up-coming mega project like Dahej PCPIR (Petroleum. with a vision of accelerate the pace of industrialization in the State of Gujarat and Vatva . Benchmarking process of comparing absolute data of each estate among themselves (internal benchmarking ) and comparing it with the estate like TTC ( trans thane creek).with average Indian practice shows that in this regard GIDC is in better Page 8 . such as negation of the earlier believe that “deteriorating water distribution system at Vatva is function of old age”. Study of Operations and Maintenance at Vatva. high encroachment is outcome of existence of multiple body like GIDC.but perhaps it can offer great learning potential to GIDC.cleanings and encroachment” need immediate attention. direct outcome of attitude of the industry was aggravated by the sluggish response from GIDC officials. where as 56 % were satisfied with that of water supply. However our findings were not limited to number of respondent and their view. which confirms the decision take by GIDC not to build any Sheds in future. Roads” and “ Security .SWD.AMC and respective association as care taking agency resulting in conflict of interest among them. for example problem of water theft . Majority of the respondent were not happy the design of the sheds. Lastly our efforts to benchmark current practice followed by GIDC . sources and case studies were another source of the data Our findings suggest that 86 % of the respondent were satisfied with the quality of service delivered for power Supply.Our findings in that category were not only encouraging . was used to find out where does the level of service delivered by GIDC falls .Odhav & Behrampura various collection. Naroda. rather for each of the four estate we had tried to find the kind of problem and its root cause of the problem.Management of Estates. where as.Maharastra Industrial Development Corporation. our finding suggest that this problem was the combination of a) the dependency of GIDC on the false data submitted by industrialist at time of application and b) ignorance of the projected future demand. Parameter like “Streetlight . not only that but few of GIDC standard are also world class .Odhav & Behrampura position compare to other Indian counterparts.Management of Estates. Page 9 . matching with the “best practice in the world” followed by various countries. Naroda. Study of Operations and Maintenance at Vatva. However still GIDC needs to improve to match with other world class standards. 19. 20. 14. 18. 17.Management of Estates.Odhav & Behrampura Table of contents Part Number Particulars Company profile Porter’s five force Vatva Basic profile Naroda Basic profile Odhav Basic profile Behrampura basic profile Trans Thane Creek Page number 4 16 26 30 33 36 37 1. Study of Operations and Maintenance at Vatva. 6. 4. 12. 2. Naroda. 8. 3. 7. 10. A 5. 9. 13. a. Benchmarking of the estates Benchmarking of each parameter Recommendations 110 114 127 C 16. a. B Research methodology Vatva Pilot study & Analysis Naroda Pilot study & Analysis Odhav Pilot study & Analysis Behrampura Pilot study & Analysis Case study CETP and Khari canal Recommendations 41 47 60 73 83 92 104 11. 15. Conclusion References Annexure 131 132 133 Page 10 . PART C Benchmarking of the estates. Study of Operations and Maintenance at Vatva. Naroda. Behrampura and Trans Thane Creek. PART B Research methodology.Odhav & Behrampura The whole project is divided into 3 parts PART A Introduction to the company & description of the area of studies . Vatva.Management of Estates. Odhav . Page 11 . findings and analysis for the studied estate. that are Naroda. ODHAV.Odhav & Behrampura PART A INTRODUCTION TO THE COMPANY & DESCRIPTION OF THE AREA TO STUDIES.Management of Estates. Naroda.VATVA . Study of Operations and Maintenance at Vatva. NARODA.BEHRAMPURA&TRANS THANE-CREEK Page 12 . Naroda. It extends to the whole of the State of Gujarat. and purchases Government land for creating industrial estates. COMPANY PROFILE GUJARAT INDUSTRIAL DEVELOPMENT CORPORATION 1. with a vision of accelerate the pace of industrialization in the State of Gujarat GIDC acquires private land. supply of water or electricity. 1962. under the Gujarat Industrial Development Act.Odhav & Behrampura 1. mainly through consent agreements. 3. Study of Operations and Maintenance at Vatva. GIDC is involved in development of: • Industrial Estates • Special Economic Zones • Special Investment Regions Gujarat Industrial Development Act. Provision of residential areas. extent and commencement: 1. Within the estates. Definitions: 2. unless the context otherwise requires (a) "amenity" includes road. 2.in) Short title. It shall come into force at once. sewerage. street lighting. 1. In this Act. 1962. by notification in the Page 13 . GIDC provides core and supporting infrastructure. This Act may be called the Gujarat Industrial Development Act.gov.Management of Estates.1Introduction to GIDC: GIDC came into existence in 1962. drainage.gidc. public amenities and required commercial spaces is an integral part of estate planning. conservancy and such other convenience as the State Government may. 1962 ( Source* www. on over or under land. engineering. where the Corporation builds factories and other buildings and makes them available for industries or class of industries. if any. quarrying or other operations in. Naroda. which is to be developed and where industries are to be accommodated. appertaining to such building or part of a building. or part of a structure or erection. but does not include mining operations.[(ca) "commercial centre" in relation to any industrial area or industrial estate means any site selected by the State Government where the Corporation builds shop and other building and makes them available for any commercial activity. (h) "Industrial Estate" means any site selected by the State Government. (g) "Industrial area" means any area declared to be an industrial area by the State Government by notification in the Official Gazette. commercial or other purposes. and includes any officer specially appointed by the State Government to perform the functions of a Collector under this Act. (j) "premises" means any land o building or part of a building and includes(i) the garden. which is intended to be used for residential. Study of Operations and Maintenance at Vatva. specify to be an amenity for the purposes of this Act. means the carrying out of building. (i) "means of access" includes a road for any means of access.] (d) "Corporation" means the Gujarat Corporation established under Section 3. industrial. or the making of any material change in any building land. for vehicles or for pedestrians. and includes re-development. (f) "engineering operations" include the formation of laying out of means of access to a road or the laying out of means of access to a road or the laying out of means of water supply.Odhav & Behrampura Official Gazette. grounds and out-houses. and "to develop" shall be constructed accordingly. 3. (b) "building" means any structure or erection. (c) "Collector" means the Collector of a district. Industrial Development (e) "Development" with its grammatical variations. whether private or public.Management of Estates. whether in actual use or not. and (ii) any fittings affixed to such building or part of a building for the Page 14 . and may sue and be sued in its corporate name. (l) "regulation" means regulation made under section 54. Constitution: 4. both movable and immovable. the Land Acquisition Act 1894 as in those areas. (m) "relevant land acquisition law" means(i) in the Bombay area of the Kutch area of the State of Gujarat. Naroda. and shall be competent to acquire. and organization of industries in industrial areas and industrial estates in the State of Gujarat 1[and for the purpose of establishing commercial centers in connection with the establishment and organization of such industries]. (ii) in the Saurashtra area of the State of Gujarat. that is to say Page 15 . Study of Operations and Maintenance at Vatva.Management of Estates. (2) The Corporation shall be a body corporate with perpetual succession and a common seal. (k) "prescribed" means prescribed by the rules made under this Act. 1894 as applied to that area. there shall be established by the State Government by notification in the Official Gazette. and (iii) the Gujarat Land Acquisition (Industrial Areas) Act 1961.Odhav & Behrampura more beneficial enjoyment thereof. for the purpose of this Act. and do all things necessary. Establishment and incorporation: 3. hold and dispose of property. (1) The Corporation shall consist of the following 2[twelve] 3[Directors]. and to contract. (1) For the purpose of securing and assisting in the rapid and orderly establishment. a Corporation by the name of the Gujarat Industrial Development Corporation. (n) the expression "land" and the expression "person interested" shall have the meanings respectively assigned to them in the relevant land acquisition law. the Land Acquisition Act. (d) 6[six] 3[Directors] nominated by the State Government. vibrant and timely provider of quality industrial infrastructure with easy. 1. ex-officio.Odhav & Behrampura (a) 4[Three] official 3[Directors]. (b) one 5[Director] nominated by the State Electricity Board Constituted under the Electricity (Supply) Act. 1. PCPIR. industry or trade or finance or to be suitable to represent the interest of persons engaged or employed therein . To fulfill the above mandate. and capability in. Special Economic Zones. and (e) the 1[Managing Director] of the Corporation . nominated by the State Government.3 Vision: To make GIDC an effective. 1948. in 25 of the 26 districts of the state. of whom one shall be the Financial Adviser to the Corporation. (c) one 5[Director] nominated by the Gujarat Housing Board constituted under the Gujarat Housing Board Act. quick and transparent delivery Page 16 .Management of Estates. Industrial Areas. ranging from mini to mega sizes. the Corporation has established 182 industrial estates. ______________________________________________________________________ Other part of GID act mainly deals with the how to carry out day to day activities of routine operation of GIDC. It is now establishing Special Investment Regions. from amongst persons appearing to it either to be qualified by reason experience of. Study of Operations and Maintenance at Vatva. large/dedicated estates in tune with the changing economic and industrial scenario. 1961. (2) The State Government shall appoint one of the 2[Directors] of the Corporation to be Chairman of the Corporation and may appoint one of the other 2[Directors] as Vice-Chairman. Naroda. who shall also be the secretary of the Corporation.2 Mandate and Functions of GIDC GIDC has been created for securing the orderly establishment and organization of industries in industrial areas and industrial estates in the state. If land is found suitable then next step is to acquire the land. under Page 17 .Management of Estates. terrain of land is suitable enough to build the estate. Naroda. at the same time post allotment GIDC also make sure that these industries get regular water.Odhav & Behrampura mechanism at competitive pricing and without losing sight of its social responsibilities. 2) Land Acquisition : Next step to build any estate is to acquire the land. Gujarat has Really good track record as far as the land acquisition is concern. power and other basic infrastructure facility. Study of Operations and Maintenance at Vatva. 1) Feasibility survey : Feasibility of proposed land site is checked.4. BTM model GIDC function on ( build transfer and maintain )model .4 Activities of GIDC 1. 1. easy rail &/or road connectivity is there or not etc are accessed and verified. weather water would be available easily. first they build industrial estates with basic infrastructure facility which is transferred to “industries” where they can start their business operations.1Building the estate. land is acquired by the mean of consent agreements. any majority of case . In most of the case its fruitful. Page 18 . under which no farmers can deny land. However if negotiation fails. Study of Operations and Maintenance at Vatva. GIDC can acquire the land by mean of land acquisition Act 1894. Naroda.Management of Estates.Odhav & Behrampura which both the parties ( GIDC and land looser ) seat together to negotiate the price of the land. 3) Building activities : Next step is to built basic infrastructure facility which are of mainly 2 types core and supportive infrastructure. SWD Streetlight Water Supply • • • • Power Supply Network Corridor for amenities – gas. school. police station.Management of Estates. banks.Odhav & Behrampura Development of land includes supporting infrastructure providing core and Core Infrastructure • Supporting Infrastructure • • Developed Plots Industrial & Housing Commercial Space Space for public amenities – hospitals. Land is allotted on lease for 99 years. power supply. solar energy • Roads.2 )Transfer of in-build plots to estates. conveyance. parks & gardens. drainage etc is provided. In built Plots along with the facility of water supply. Skill Up-gradation Centers Environment Conservation Initiatives – green spaces. Study of Operations and Maintenance at Vatva. post office. telecom.4. community hall etc. Naroda. ( allotment) ALLOTMENT Estates are classified as saturated and regular. Effluent collection. renewable for another 99 years Applicant has to pay 100% cost of the property within 30 days time from the date of receipt of Offer-cum-Allotment Letter (OcA) to have allotment in Saturated Estates In small regular estates the applicant has to pay the down payment @ 30% of the total cost of the property Page 19 . pipelines etc. treatment & disposal • • • 1. Page 20 . The remaining 70% is to be paid by 32 post dated cheques (PDCs) of quarterly installments with the prevailing rate of interest. which is 13% and subject to revision from time to time.Odhav & Behrampura within 30 days of the receipt of allotment letter. Study of Operations and Maintenance at Vatva. Naroda.Management of Estates. of Scrutiny Fee (Acknowledgement within 7 days) Issuance of OCA (7 days for non-commercial & for chemical cases.Odhav & Behrampura Allotment Stages Purchase of Application Form Submission of Application with D.Management of Estates. on receipt of NOC from GPCB) Agreement Execution along with down payment (30 days from date of OCA) Possession Advice (within 3 days) Taking over of Physical Possession (20 days) In the year 2006-07 GIDC has done the highest amount of land allotment. Naroda. Study of Operations and Maintenance at Vatva. See the annexure -6 Page 21 .D. Odhav & Behrampura A bridge at Hajira port GIDC . textiles and engineering Special Investment Region (SIR) 60 special economic zones (SEZs) across Gujarat 202 industrial estates across Gujarat Soda ash and saltbased industries. pharma.Industrial Estates and Clusters Bio-Tech cluster Gujarat International Finance-Tec City Knowledge corridor Industrial corridor (DMIC) Savli Biotech Park Petroleum. Naroda.Management of Estates. petrochem. Chemicals and Petrochemicals Investment Region (PCPIR) Chemicals. cement and steel pipes 182 industrial estates across Gujarat Petroleum and brass parts Engineering and ceramics Soda ash and salt based 18 Captive Ports along 1600 km coastline across Gujarat To Bombay 60 special economic zones (SEZs) across Gujarat Balanced Development and Common Infrastructure Planning & Sharing Page 9 Gujarat Industrial Development Corporation Page 22 . Study of Operations and Maintenance at Vatva. Vatwa. Study of Operations and Maintenance at Vatva. Ankleshwar. town planners. GIDC executives and professionals have developed expertise in the development of industrial estates/parks and provision of infrastructure such as designing and implementation of water/effluent lines. GIDC has created 182 (as on may 2010) functional industrial estates spread all over Gujarat .fledged industrial township. the conglomeration becomes a full .GIDC functions for all practical purposes like a core corporate house. All across the state. Over the years. GIDC has remained abreast with the requirements of the time and has brought into existence industry specific estates like the electronics estate at Gandhinagar. Naroda.5 Functioning of GIDC GIDC operates and maintains industrial estates in various districts of Gujarat State. GIDC's estates are marked with a difference from the normal private estates/ areas in a way that over a passage of time. Page 23 . With this in mind. construction of roads. Panoli. Streamlined procedures and customer-friendly approach has enabled GIDC to reach out to the smallest entrepreneur. Nandesari. GIDC has currently manpower of 1905 which includes professionals such as architects. Divisional accountants etc. chemical estates at Vapi.Odhav & Behrampura 1. Jhagadia. sheds and quarters etc Gujarat Industrial Development Corporation (GIDC) truly believes in a win win business philosophy. ceramics estates near Bhavnagar. These estates are self-contained sanctuaries capable of sustaining a large number of industries within themselves.Management of Estates. Odhav etc and a host of engineering estates spread all over Gujarat where the entrepreneur can have the advantage of being along with his fellow trade people and can be easily approachable by the visiting clients. Naroda. GIDC has planned for 252 Industrial Estates of which 182 are developed and functional. Gujarat State is divided into "Districts" which are further subdivided into "Talukas". civil engineers. The Notified Area Tax payable in such area is only for maintenance and repairs purpose and is very reasonable Page 24 . The prices so fixed are approved by all financial institutions for quick approval of loans GIDC also provides sites/ land for solid waste disposal and CETPs and effluent disposal pipeline for disposal of liquid effluent which can be collectively used by the entrepreneur GIDC estates. bank. communication. GIDC provides ready to occupy sheds for immediately starting an industry and also provides godown for storage of its material GIDC. disposal of waste water etc. Naroda. dispensary. are free from payment of local taxes and octroi.6 Advantage of being inside the GIDC estate : GIDC land is for industrial purpose.Management of Estates. being a Government organization. community garden. GIDC establishes its estates after verifying the viability and availability of water. police chowky.O. post office. The chemical estates of GIDC are approved centre for chemical industries by Gujarat Pollution Control Board (GPCB) All titles related to land/ building within GIDC estates are clear and free from any encumbrances and are easily marketable An entrepreneur can start the industry by paying only 30 % of the total cost as down payment and can pay remaining amount in a period of 10 years. linkages. one declared as Notified Area. So the entrepreneur gets a really developed and planned area GIDC estates are provided with required amenities like school. power. is transparent and fair in fixation of the prices of land/ building./ N.C. garden etc. Study of Operations and Maintenance at Vatva. So no need to waste time on getting Non-Agricultural.Odhav & Behrampura 1. market. common services.Odhav & Behrampura GIDC estate provides a unique opportunity to an entrepreneur to avail cluster benefits related to raw material.Management of Estates. technology. Naroda. Study of Operations and Maintenance at Vatva. Any up gradation program undertaken in GIDC estate provides direct advantage to all industries located therein. linkages etc. Page 25 . of.182 Name of Circle No.Management of Estates.Odhav & Behrampura Total GIDC Estate :. Naroda. Study of Operations and Maintenance at Vatva.Estates Name of Division Ahmedabad Mehsana Vadodara Bharuch Bharuch 18 Jhagadia Ankleshwar Surat Rajkot Total 18 71 182 Surat Vapi Rajkot Bhuj No.Estates 24 22 29 13 02 03 09 09 60 11 182 Ahmedaba 75 d Page 26 .of. Study of Operations and Maintenance at Vatva.Management of Estates. on the west coast of India. to set up an SEZ at Mundra. Mundra Port and Special Economic Zone Limited (MPSEZ) . India’s largest private port and special economic zone. which requires huge investment and government support as well. was incorporated as Gujarat Adani Port Limited (GAPL) in 1998 to develop a private port at Mundra.Odhav & Behrampura Industry Analysis : Building the estate to provide “in build” plots to the industry is one of the unique kind of industry. However one must have to keep a point in mind that this SEZ is fully supported legally by Government Of Gujarat. Mundra Special Economic Zone Limited (MSEZ) was incorporated in November 2003. For that corporation must need to acquire land which no private body can afford without government support. though seating on huge financial surplus is not for profit organization. by providing infrastructure support to industrialist. Naroda. The company commenced commercial operations in October 2001. Finally GIDC it self is. this is the main reason that in general there is not a single private player that operates in this field. However In Gujarat there are few private players who operate in this industry such as mudra SEZ developed By Adani group. The company was renamed as Mundra Port and Special Economic Zone Limited. MSEZ was merged with GAPL in April 2006. So virtually we can say that there is no competition in the industry. to reflect the nature of business. Page 27 . otherwise keep the question of competition per se aside no firm can survive to compete with GIDC without government support. Because even if a few farmers refuse to provide the land whole project will become a huge failure. In India majority of the states have their own industrial development corporation which is promoted to ignite the growth of the state and country. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market.Management of Estates. Naroda.7 Porter's five force model It is a framework for the industry analysis and business strategy development developed by Michael E.Odhav & Behrampura 1. 1) The threat of the entry of new competitors Very Low. A very unattractive industry would be one approaching "pure competition". so we can say that virtually there is no competition in the market Page 28 . Study of Operations and Maintenance at Vatva. Attractiveness in this context refers to the overall industry profitability. Legally no other firm can possess the power to acquire land . An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. Porter of Harvard Business School in 1979. in which available profits for all firms are driven down to zero. with Dhahej PCPIR and Dholera SIR. Number of substitute products available in the market. rather quality of products are improving.Nil Buyer switching costs -Very High. so no direct competition. Investment required-Very high. Learning curve advantage-high as GIDC is in operation since last 48 years . Naroda.Management of Estates.Odhav & Behrampura Reasons: Government policy of land acquisition which gives competitive advantage to GIDC Entry barriers -Very high Exit barriers. Study of Operations and Maintenance at Vatva. 3) The threat of substitute products or services : Low Buyer propensity to substitute.Very high as leaving from operation will result in huge sunk cost. if consider estates of other states. Page 29 . Quality depreciation-very Low. other private players like Adani and Reliance can be competitor at smaller scale but they can not survive the competition from GIDC directly. but people are move apprehensive after Singur incident.there are enough players.Less Relative price performance of substitute. few other SIDC (state industrial development corporation )can be competitor but all are separated by legal means and operate in various states. 2) The intensity of competitive rivalry Low-Though Maharastra Industrial development corporation . Very high Buyer information availability -Limited Availability of existing substitute products. Low Low Low to moderate threat of substitute products or services bargaining power customers buyers of Page 30 .Odhav & Behrampura 4) The bargaining power of customers (buyers) Low to moderate.Less Buyer volume -single and individual Buyer switching costs relative to firm switching costs. which also affects the customer's sensitivity to price changes. particularly in industries with high fixed costs.Limited 5) The bargaining power of suppliers : Low. Study of Operations and Maintenance at Vatva.High Presence of substitute inputs . All the following points mentions be love gives higher competitive advantage to GIDC Supplier switching costs relative to firm switching costs . 3. 2. The ability of customers to put the firm under pressure. The bargaining power of customers is also described as the market of outputs.High Impact of inputs on cost or differentiation. Buyer concentration to firm-Very High Bargaining leverage. 4. Naroda.Nil Number of supplier-Many The threat of the entry of new competitors The The The intensity rivalry of competitive Very Low 1.Management of Estates. Management of Estates.Odhav & Behrampura 5. Naroda. Study of Operations and Maintenance at Vatva. The bargaining suppliers power of Low Industry highly favors the incumbent. Page 31 . no bank will be interested to land money for such high payback period. and more and more entrepreneurs are coming to start a new business. which may sometime hamper the progress of project due to longer time of moving files from one department to other.8 SWOT Analysis of GIDC Strength 1) Government support : GIDC can legally acquire any part of land in Gujarat. Study of Operations and Maintenance at Vatva. Threat 1) Infrastructure projects have high gestation period of more than 25 years or so.Odhav & Behrampura 1. Others lost is ours opportunities 4) Booming Indian Economy. for environment concern has Page 32 . and as far as land acqisn is concern. Weakness 1) Aging staff (Average age of employee is 51 ). would be always high Eg. which will retire at the age of 58 in a single stock. which can hamper the growth of GIDC 4) Traditionally record of Gujarat. 3) High waiting time for getting clearance for various projects. many aspects falls under concurrent list of Indian constitution. 4) Strict government control over the financial aspect of the firm. in any. as GIDC can not invest their surplus money without government permission. 5) Co-operative land donors. 2) Hierarchical based organization. ( Gujarat farmers has been most supportive in India.Management of Estates. 2) Virtually No competition: As competitor does not have legal power to acquire land 3) Robust financial position of the firm 4) Learning curve advantages : GIDC is in Business since last 48 years. Naroda. New employee needs time to learn exhaustive technical aspect of firm. 2) High growth of real estate sector. price of land acquire by GIDC has been increasing very at faster rate 3) Post shingur many firms are reluctant to invest in red zone areas.Surat Apparel park 3) Though operation of GIDC has been more or less regulated by Gov of Guj. 2) Degree of losses in projects . government of India also provides contribution to GIDC. resulting in loss of Human Resources. Gujarat has very good track record Opportunity 1 ) Friendly Infrastructure investment policy Of Government of India as in For CIP . The 7S model can be used in a wide variety of situations where an alignment perspective is useful. Study of Operations and Maintenance at Vatva. The Seven Elements The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements: Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements. the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.Management of Estates. 1. Align departments acquisition.9 McKinsey 7S Framework Ensuring that all parts of your organization work in harmony Developed in the early 1980s by Tom Peters and Robert Waterman. for example to help you: Improve the performance of a company. So wrath of judicial system can affect the firm negatively. Naroda. Page 33 . two consultants working at the McKinsey & Company consulting firm.Odhav & Behrampura 5) Dahej PCPIR and Dholera SIR are upcoming jewels. if implemented properly it may increase perceived vaule of firm been not very good. and processes during a merger or Determine how best to implement a proposed strategy. Examine the likely effects of future changes within a company. Study of Operations and Maintenance at Vatva. Structure: the way the organization is structured and who reports to whom. and formal processes and IT systems. However. can be more difficult to describe. these soft elements are as important as the hard elements if the organization is going to be successful. "Soft" elements.Management of Estates. on the other hand. and are less tangible and more influenced by culture. The way the model is presented in Figure 1 below depicts the interdependency of the elements and indicates how a change in one affects all the others. Page 34 . Naroda. Systems: the daily activities and procedures that staff members engage in to get the job done. Hard Elements1)Strategy 2)Structure 3)Systems Soft Elements 4)Shared Values 5) Skill 6 ) style 7) staff. • • • Strategy: the plan devised to maintain and build competitive advantage over the competition.Odhav & Behrampura organization charts and reporting lines. Skills: the actual skills and competencies of the employees working for the company. Study of Operations and Maintenance at Vatva. Staff: the employees and their general capabilities. • • • Page 35 .Odhav & Behrampura • Shared Values: called "super ordinate goals" when the model was first developed. these are the core values of the company that are evidenced in the corporate culture and the general work ethic. Naroda.Management of Estates. Style: the style of leadership adopted. where GIDC and land looser seats on table to negotiate the price.4 Shared Values: GIDC has very unique working environment.Odhav & Behrampura • 1. gel with each other very well and have a common goal to take GIDC at higher level of excellence.1 Strategy: GIDC operates on BTM( build transfer and maintain ) model .3 Systems: GIDC is such a huge organization that each departments has its own unique way for getting the work done. At the same time firm has very competence people at Engineering branch who are experts at building the estates. Acquisition of the new land is mainly done by Consent agreement . as in. Post allotment management of estates are mainly done by either association or GIDC it self. where employee celebrates each others success.9.Management of Estates. • 1.9.2 Structure • 1. first firm will build the estate which will be allotted to industry. Naroda. quick and transparent delivery mechanism at competitive pricing • 1. Study of Operations and Maintenance at Vatva. post allotment GIDC also provides support for maintenance of the estate So GIDC is timely provider of quality industrial infrastructure with easy. Culture of the organization is such that their employees are Page 36 .9.9. Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura always ready to adopt new idea ( for e.g. Summer Internship program , which GIDC adopted for the first time was embraced by their employees with open heart ) Page 37 Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura • 1.9.5 Style: Honorable chairman Mr. Sahu and Honorable VC and MD Mr. Arvind Agraval as leader of the organization are visionary, who believe in the philosophy of Transformational leadership. Thinking out of the box is always welcome and every new ideas let it be concept of BOM or giving more responsibilities to association or starting a new initiatives like summer internship program is cherished. • 1.9.6 Staff: . Very good human skill, with excellent communication skills who are very co- operative and always ready to help. Additionally staff is very loyal to the organization, as in, most of them are working with organization since more than 30 year so naturally long years of the experience has made them very competent who are capable of dealing with any new challenge. • 1.9.7 Skills: Area of the operation of the firm is so vast that it demands various kind of technical skills at work, such as architectural skill, engineering principles, technical knowledge of water supply , power supply and environmental norms, financial concepts, geographical property of lands, legal knowledge to deal with various kind of regulatory authority etc. Looking at the growth of GIDC over the period of time one may conclude that, employee of the firms have embraced all these skill very well. Page 38 Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura Up coming mega project where GIDC partially or fully involved. 1) Dholera SIR • • • • • Total Area : 800 sq. kms: a green field location Developable area: 500 sq. kms. Economic activity area : 360 sq. kms World-class infrastructure & connectivity: within & outside Central spine express way & Metro Rail to link the SIR with mega cities Airport & Sea Port in the vicinity Proximity to mega cities: Ahmedabad, Bhavnagar, Vadodara Benefit of sea coast, nature park, golf course Premium civic amenities Capable to cater to both International & Domestic Market Close to Guajrat International Finance TechCity (GIFT) Close to Petro-chemicals and Petroleum Inv. Region (PCPIR) Logistic support of the Dedicated Freight Corridor (DMIC) Benefits of the high impact Delhi Mumbai Industrial Corridor (DMIC) Public investment in core infrastructure • • • • • • • • • • Page 39 Management of Estates, Study of Operations and Maintenance at Vatva, Naroda,Odhav & Behrampura 2) Delhi Mumbai industrial freight. The Delhi-Mumbai Industrial Corridor Project is a StateSponsored Industrial Development Project of the Government of India. It is an ambitious project aimed at developing an Industrial Zone spanning across six states in India. The project will see major expansion of Infrastructure and Industry – including industrial clusters and rail, road, port, air connectivity – in the states along the route of the Corridor.The ambitious Delhi Mumbai Industrial Corridor (DMIC) has received major boost with India and Japan inking an agreement to set up a project development fund.The initial size of the Fund will be Rs 1,000 Crore (about $212 milion). Both the Japanese and Indian governments contribute equally. The corridor would include six mega investment regions of 200 square kilometers each and will run through seven states Delhi, Western Uttar Pradesh, Southern Haryana, Page 40 Management of Estates. Page 41 . Study of Operations and Maintenance at Vatva. Naroda.Odhav & Behrampura Eastern Rajasthan. Eastern Gujarat. Western Maharashtra and Madhya Pradesh. Study of Operations and Maintenance at Vatva.2500 crores/year Rs. was set-up in the year 1968. 1968 512 hectares 4 2200 Rs. spread over an area of more than 491 hectares. It is one of the oldest and largest estates in the state. Length of water supply 50 kms. line Page 42 .10 VATVA Introduction Vatva Industrial Estate.Management of Estates. 1) 2) 3) 4) 5) 6) 7) 8) 9) Set Up by GIDC Area Phases Total Operating Units Annual turnover Exports Total Employment Road Length Activity/Unit.1500 Crores/ year 80. and having over 1800 industrial units in four phases Satellite Image of Vatva Vatva Profile : Key Indicators No Particulars . 42 kms. Naroda. Ahmedabad. when GIDC initialized the industrial Revolution of young Gujarat State.000 People.Odhav & Behrampura 1. Directory 200 Page 43 . Naroda. Study of Operations and Maintenance at Vatva.Odhav & Behrampura (Source : Vatva Industrial association.Management of Estates. Chemicals. The association members are aware and fulfill their social responsibilities as well. Post office. National Standards Laboratory.AMTS buses Police station. 85% of total units are of Tiny and SSI type. Study of Operations and Maintenance at Vatva. Aec government CIPET. National Leather Research Institute. Naroda. Plastics. Light & heavy engineering. Textile Nirma.org/aboutvia.aspx ) Established in 1971 by just a handful of industrialists. ESI hospital Telephone exchange. the Vatva Industries Association is today the largest industrial association in any estate in Gujarat. at charitable rates. etc (Source : http://www. Prashant. and for public coming from far distances. Dutron.vatvaassociation. Intas. for government By : Excise.Management of Estates.1Additional Features of Vatva 1) 2) 3) 4) Connectivity Amnesties USP Types of Industries Near By railways station. Meghmani.10. Sales Tax. pharmaceuticals.Odhav & Behrampura 1.. Foundries. property Tax. Parle. Income Tax. with a membership close to 1200 units. Godrej. Machinery & components. Indo German Tool Room 5) Major players 6) Prominent institutes 7) Major Source of Income Octroi. Mamta. Paints. The Vatva Industries Association Charitable Trust operates a polyclinic for benefit of workers & their families. The Green Environment Co operative Services Society Ltd. Solid. Metrochem. an independent body promoted by the association. handles liquid Page 44 . Torrent. Through visionary dreams and co-operative approach the Vatva Industries Association continuously strives to promote industries and become most active premium association in the state. Page 45 . officials and ministries.Management of Estates. Common Effluent Treatment Plant at Vatva The Vatva Industries Association organizes various programs and seminars on different topics aimed to provide our members information and training in various administrative and technical aspects of business. The Vatva Industries Association has also promoted a Vatva Young Entrepreneurs Forum for new & second generation industrialists between 20 – 40 yrs. of age to train them and give them proper exposure of handling industrial units. Naroda. We also organize regular interactions with govt.Odhav & Behrampura effluents and solid waste from polluting industries for proper treatment and disposal. Study of Operations and Maintenance at Vatva. ) 4 Page 46 . Study of Operations and Maintenance at Vatva. 2008. N o. Naroda. Glass. Electrical & Food Industries Cattle feed.Odhav & Behrampura 1. Other • (Source :VIA directory. 1) 2) 3 4 5 6 7 8 9 10 11 Types of Industry. Engineering Industries Chemical & Allied Industries Plastic Industries Pharmaceutical Industries Textile Industries Ice Rubber & Package Industries Electronic .2 Classification of Industries Percenta ge. Printers and stationers 30 32 5 5 3 3 5 4 2 % % % % % % % % % % % Packaged Drinking water. Wood.10.Management of Estates. Stone & Cement 2 industries. Odhav & Behrampura 1. Westcoast and Maccure. Umiya Textile and Nirman Textile. it was incorporated into Ahmedabad in 1996.11 NARODA 1. India. Harshtaiana.11. Naroda. Pharmaceutical companies include Dishman [5].2 Industry The Naroda GIDC industrial park hosts national and multinational corporations such as Reliance Industries Ltd. northeast of Ahmedabad. With the establishment of the Naroda Industrial Area in the 1964. In the recent Vibrant Gujarat summit. Several major township projects are being developed along the Ahmedabad-Vadodara expressway with Naroda being at the center of the development.11. Pepsi Co. Dresser Industries. the town flourished. Tuton. Ingersoll-Rand. Laxmi Engineers and various chemical and textile industries. Naroda is situated on the emerging Gandhinagar-Ahmedabad-Vadodara (GAV) corrid 1. Gujarat.Management of Estates. Study of Operations and Maintenance at Vatva. including Arvind Mills. India's snack food manufacturer Samrat Namkin is located in Naroda. 1 2 3 4 5 Set Up by GIDC Establishment of NIA Incorporated into AMC Area Units 1964 1968 1996 337 ht 1700 Naroda is a suburban town in Bapunagar. Being eight km from Ahmedabad International Airport and located on the SP Ring Road. 24 projects worth Page 47 .1 INTRODUCTION Particulars Activity/Unit. Projects include hospitals. Study of Operations and Maintenance at Vatva.Odhav & Behrampura more than Rs 1.000 crore were slated to be developed in this part of city and along the Ahmedabad-Vadodara expressway. a business park and a 120-room hotel Page 48 . clubs. educational institutions. Naroda.Management of Estates. NRI residential colonies. Management of Estates. Op. Naroda.Odhav & Behrampura 1.000 saplings & 4kms fencing Won International Buisness Initative Directions(BID) Gold Award at New York by NEPL Setting up training center at Naroda and center of excellence at TSDF Odhav by NEPL 2001-2005 2005 2005 2009 2009 2009 2009 Page 49 .11. Bank Ltd. Study of Operations and Maintenance at Vatva. For Cleaner Technology MOU with AMC for infrastructure development for sharing Property Tax MOU with GIDC for taking over water supply scheme MOU with GIDC for greening of estate. For service sector Golden Peacock Enviornmental Management Award to Naroda Enviro Projects Ltd. Planted 20.3 NARODA IDUSTRIAL ASSOCIATIOS 1968 1994 1995 1996 1996 1996 1997 1998 2000 Established Tree Plantation & Beautification Project NIA Hospital Charitable Trust Common Effluent Treatment Plant Solid Waste Landfill Site Environmental Monitoring Committee(NEMC) Naroda Industrial Co. Eco-Industrial Networking Research Project Cleaner Production Center(CPCN) Greentech Enviornment Excellence Award to Naroda Enviro Project Ltd. Presently the Odhav Estate is part of Ahmedabad Municipal Corporation have many basic infrastructure facilities like Road. Study of Operations and Maintenance at Vatva. AMC. Naroda. Plastic. OIa work hard to get improved infrastructure of world class level.Management of Estates. Machinery & Components. Canteens. Police Station. 1) 2) 3) 5) 6) 7) 8) Set Up by GIDC Area Phases Total No. Pharmaceuticals. and Foundry (Source : odhav Industrial association. & Central Govt. Telephone Exchange. Odhav has always been the foreground for growth of many large & medium national corporate but its real strength leys in its 85% SSI Units. Directory 2008-2009) Page 50 . The estate houses industries like Engineering. Dyes & No Particulars Activity/Unit. . State Govt. Sewerage. Water Supply Line.. With the cooperation of GIDC. Fire Station etc.12 ODHAV Introduction Odhav GIDC is one of the oldest estate in the state spread over 127 hectares consisting for 525 Shades & over 1200 Industrial Units. Post Office.Odhav & Behrampura 1. of sheds Road Length 1967-1968 127 hectares 4 525 14 km Length of water supply 14 km line Overhead Water Tanks 2 Chemicals. Odhav & Behrampura 1.1 Additional Features of Odhav 1) Connectivity Near By railways station AMTS buses Road.12. IA was established in 16-01-1981 by Late Shree Nanubhai Patel and many other renowned industrialist of Odhav with the prime objective of encouraging & spreading entrepreneurship attitude among the manufacturing sector. and Foundry etc. Organization & industries.Management of Estates. Study of Operations and Maintenance at Vatva. Water Supply Line.. Engineering. Sewerage. 3) USP large & medium national corporate units but 85% of total units are of SSI type. Police Station. especially SSI. Fire Station etc. Dyes & Chemicals. Plastic.aspx) Odhav Industries Association ( OIA ) is one of the oldest & highly recognized Industrial Association among the Govt. 2) Amnesties Telephone Exchange. Canteens. 4) Types of Industries (Source : http://www. Naroda. Pharmaceuticals. Post Office. Page 51 . Machinery & Components.org/aboutvia.odhavssociation. Naroda.Odhav & Behrampura Providing platform to the Industrialist for interaction with each other and make constructive and meaningful representations to the Govt. 1. Study of Operations and Maintenance at Vatva. 37 28 35 % % % Page 52 . rules & regulation & sustainable development of SSI are also additional objectives. provide common platform to members & Government authorities for better implementation of Govt. authorities.12. Engineering Industries Chemical & Allied Industries Other Industries Percentage. 1) 2) 3) Types of Industry.Management of Estates.3 TYPE OF INDUSTRIES AT ODHAV No. located at the Sabarmati bank . Page 53 . 4. 2. Particulars Unit/content. 8. Which makes it costly and time consuming to look after various parameter of service delivery like water There were few Engineering industry at Behrampura during the early years of the operation .13 BEHRAMPURA No. Connectivity Behrampura the one of the smallest estates of the GIDC. Name of the estate Year of establishment Area Behrampura 1971-72 < 2 Hectors. 3. Types of industry. industries located over here are not much dependent upon water or power supply as majority of them neither fall in the category of Engineering nor Chemical industry. Study of Operations and Maintenance at Vatva. but majority of them left over the period time. One of the distinct feature of this estates is that . Number of the units 27 (plots) Number of operating 22 units (As on june2010) Water managed by Supply AMC Animal bone based operation.Odhav & Behrampura 1.Management of Estates. BRTS 6. 1. 5. has been in the operation since 1971. 7. near Khodiar Nagar. Other distinct feature of the estates is the smaller number of units operating over here. Naroda. Odhav & Behrampura . power etc as in smaller the number lesser the economic of scale and higher the cost of operation. Page 54 . Study of Operations and Maintenance at Vatva.Management of Estates. Naroda. Study of Operations and Maintenance at Vatva.13.Odhav & Behrampura 1. Naroda.1 TTC : ( Trans Thane Creek ) Introduction : 1) 2) 3) 4) 5) Established Units Mainly Engineering Transportation Area 1963 3500 45 to 47 % BEST 2562 ht Page 55 .Management of Estates. right up to London Pilsner. Bounded on the one side by the Thane-Belapur Road and on the other by the Mumbra Hills. lies on the southern part of the Deccan belt of India between latitude 18°53 ′– 19°04′ N and longitude 72°48 ′–72°53′ E and includes the Ulhas river estuaries. the linear TTC area stretches from Mukand Ltd. medium and large in operation. Page 56 . most of them being small entrepreneurs. While TTC claims that as the units are part of the Maharashtra Industrial Development Corporation (MIDC) area. small.600 members in SS The NMMC ( Navi Mumbai Municipal corporation ) and TTC have been at loggerheads for some years now over the property tax issue. There are around 1. the NMMC claims that since the MIDC area falls in its jurisdiction the units are liable to pay taxes. They are feeling vulnerable and have not yet been able to work out what stand they should take against the civic body's move. It is a huge industrial area near Mumbai. The NMMC notice has created a panic among the industrialists in the TTC belt. Among the earliest Industrial Areas set up by the then fledgling Maharashtra Industrial Development Corporation in 1963.Management of Estates. Naroda. It is popularly known as Thane. with more than 3500 industries. they cannot be subjugated to the municipal taxes. km Trans-Thane Creek Industrial Area was at one time the largest contiguous Industrial Estate in Asia.Belapur Road. The nearest hill stations are Matheran and Karjat. the 25 sq.Odhav & Behrampura Trans Thane Creek also TTC is a creek running between Thane and Navi Mumbai. Study of Operations and Maintenance at Vatva. The study area Thane Creek. ODHAV.FINDINDS & ANALYSIS AT NARODA. Study of Operations and Maintenance at Vatva. Naroda. Page 57 . VATVA.Management of Estates.Odhav & Behrampura Part B RESEARCH METHODOLOGY. BEHRAMPURA. Study of Operations and Maintenance at Vatva. up-gradation of infrastructure. 2.Management of Estates. Naroda. suggesting the action that leads to Occurrence of such problem in future.Odhav & Behrampura.Odhav & Behrampura 2 .1Title Description Management of estates.Introduction to the Project 2. study of Operations and Maintenance at Vatva. 2. Naroda. operations and maintenance of primary infrastructure in the estate • Collect information through primary and secondary data and suggest important points for improvement and development of Estates • Provide the feasible solution of the problem • Also find the root cause of the problem.1.1Title Up-gradation.2Objective To study the existing management practices & operations and maintenance of GIDC estate on primary infrastructure facilities in the areas of Vatva. 2.1.Odhav & Behrampura. Naroda. Page 58 .3 Scope • Understand the existing management practices of estates • To identify what are the major factors for up gradation.1. Operations and Maintenance of GIDC Estate. what one can learn from such establishment. plots. security.Management of Estates.Odhav & Behrampura 2. roads etc ) were established before few couple of decades and cynic may argue that. Effluent treatment. and may be could not use the modern technology. in parameter like Water supply. even if they want to. Sheds. Our objective for the project “ Management of Estates. encroachment etc. because they are limited by aging infrastructure Page 59 . but Gujarat has taken the giant leap in last few decades. not only GIDC per se.2. Dahej PCPIR and Dholera SIR are the up coming mega projects in the field of infrastructure. Naroda. Study of Operations and Maintenance at Vatva. rather only suggestion one could give is to change the existing system as in . Study of Operations and Maintenance at Vatva.2 Research Methodology 2. Odav and Vatva which are currently few of the oldest estates in the country . However . 1962. along with providing the suggestion for the areas of improvement. cleanliness . Drainage.Odhav & Behrampura” was to understand the maintenance practice followed by GIDC. Upgradation of Infrastructure. water supply. under the Gujarat Industrial Development Act. becoming the growth engine of the country. with a vision of accelerate the pace of industrialization in the State of Gujarat. many of these infrastructure parameter (sheds. Naroda.1Study Background GIDC came into existence in 1962. Within few couple of years they established various estates like Naroda . Power Supply. So question is why one need to study older estates which are technologically far less advanced. Management of Estates.2. Odhav. Thus findings of this project can be learning exercise for GIDC in two ways. like an organism must keep learning and keep growing to cope up with the pace of the change. Naroda. resulting in better maintenance of Naroda. which in returns may help GIDC to built up-coming projects and estates in better way. Page 60 . 1)Learning from It can directly lead to the improvement of current practice. management practice followed by GIDC. 2) Learning Findings of the projects can help GIDC to from past to analyze its shortcomings and mistakes they Improve future committed in the past at the time of establishment of these estates. An organization can not improve its future without learning from past.3 Significance of the study The following table shows that how these 4 estates collectively plays crucial role in not only revenue generation but providing employment to almost 2 to 3 lakh people (direct and indirect employment ) Apart from that. these estate also provide major junk of the export to the Gujarat.2. Vatva and Behrampura estates. 2.2 Need of the study Organization. Study of Operations and Maintenance at Vatva.Odhav & Behrampura 2. 8 lakh Rs . Approximately Annual Export (approximate ly) Name of the estates Odhav. Naroda. Study of Operations and Maintenance at Vatva. 2000 to 3000 crore 2. Naroda Vatva Behrampura (Source :Directory of respective association) 1.2.4 Study Domain Business research The systematic and objective process of gathering.Management of Estates. which shows that how crucial these estate to the economy of Gujarat and India are. 3) Selecting and implementing a course of action 4) Evaluating course of action. It reduces the uncertainty by providing information that improves decision making.6000 to 7000 crore Rs. Significance of the estate to the economy . Provides Employment to Approximatel y. recording and analyzing data for aid in making better business decision.5 lakh to 1. How business research is relevant in this project Page 61 .Odhav & Behrampura Daily turnover of all 4 estates is at 15 crore. Collective Annual turnover. How Business research can be Useful 1) Identifying the problem or opportunity 2) Diagnosing and assessing problems or opportunity. Study of Operations and Maintenance at Vatva. Page 62 . Naroda.Odhav & Behrampura The first step to solve any problem is to “identify the problem with the proper diagnosis of the situation” A wrongly define problem can result into erroneous findings.Management of Estates. yet even today it is functioning very well. we came to know that water distribution system at Naroda is also 40 year old . questionnaire base descriptive studies . one may easily like to conclude that. almost 40 year old infrastructure of water distribution system is not able to withstand the high pressure generated by ESR. association is not able to use ESR while at other estate. Naroda. Benchmarking is the one of the methods of the business research under which we compare absolute data with the standard. Study of Operations and Maintenance at Vatva.Odhav & Behrampura Various methods of problem diagnosis like pilot study . which lead us to very interesting question Though water distributions system at both the estates ( Naroda and Vatva ) are in existence for the almost same number of years . Problem Definition The first and most crucial stage in research design – determining the problem to be solved and objective of the research. why at one estate.Management of Estates. So when we compared water supply of Vatva with Naroda. Page 63 . For Example While trying to find the reason at Vatva estate . case studies were the great help to us for defining not only the problem but also helping us to find the proper solutions of the problem. still ESR are functioning very well ? These questions lead us to the very interesting finding of our project. However if we would have not used the proper methods of business research we would have ended up with erroneous conclusion that failure of ESR at vatva is the function tear and wear of long year of operation. However it was not the real situation. why association is not able to use the ESR( elevated storage reservoir) for water supply. . Savli. every Saturday we were provided in depth knowledge of various aspect of Infrastructure related projects at AMA by experts of the field. Page 64 .Vapi.Management of Estates. And we had to give final presentation in front of of Honorable VC and MD. Study of Operations and Maintenance at Vatva. power supply. Literature study Water. Benchmarking Data Collection Secondary Data Collection from various Reports and other materials Data Analysis Recommendations and Conclusion The entire project was well monitored by GIDC. We had to do periodic reporting at GIDC. Naroda. Sachin.5.Odhav & Behrampura.Hajira.1 Methodology for Research: Objective To study the existing management practices & operations and maintenance of GIDC estate on primary infrastructure facilities in the areas of Vatva. and HODs of the GIDC. Naroda. There was mid term appraisal at the end of one month. Ankleshwar.Odhav & Behrampura 2. Even we were taken to the field visit of Surat. other infrastructure Primary Data Collection by way of Questionnaire method. Management of Estates. and HODs of the GIDC Page 65 .Odhav & Behrampura Presenting our ideas in front of Honorable VC and MD. Naroda. Study of Operations and Maintenance at Vatva. various parameters like • • • • • • Water Supply Developed Industrial Plots and sheds Roads. solid waste. To conduct pilot study we randomly choose 40 industry out of total. Effluent treatment & disposal. 1 3 Apart from that we asked respondent to specify the kind of problem he/she is facing in each parameter. Highly satisfie d 5 Somewhat satisfied 4 Neutral Somewhat satisfied 2 Highly dissatisfied. to determine the best research design. we did not provide the list of problems that we perceived to be exist. conveyance. Numerical scale An attitude rating scale which uses numbers instead of verbal description as response option to identify the response position. 2200 Industry. Considering the fact that. if any.Management of Estates. data collection method and selection of subjects. All the questions were open ended. Study of Operations and Maintenance at Vatva.( Random Sampling ) We choose.Odhav & Behrampura 2. collection. we were conducting exploratory survey. Naroda. SWD & Streetlight Power Supply Network Environmental Issues. rather Page 66 . On the basic of degree of satisfaction respondent were asked to rate the above mentioned parameters from 1 to 5 numerical scale.6 Pilot Study at Vatva. Study of Operations and Maintenance at Vatva.Management of Estates. Page 67 . Naroda.Odhav & Behrampura we just simply asked them to tell us the problem which they perceived to exist. Management of Estates. Our findings suggest that delivery of service level for power supply is par excellence.Odhav & Behrampura 1) Power Supply at Vatva estate. Types of Vatva response. Naroda. Total 50 % (as in. Findings : 60 % out of the total respondent felt that they were highly satisfied with the power supply. 2)Water Supply Vatva : Findings . 18 % were highly satisfied and 32 % somewhat ) satisfied with the service level delivered for this parameter Page 68 . No . Water Supply percentag e of responden t Highly 0% dissatisfied Somewhat 6% dissatisfied Neutral 8 % Somewhat 26 % satisfied Highly 60 % satisfied 1 2 3 4 5 Analysis : Power supply was not provided directly by GIDC rather it was managed by Torrent. Study of Operations and Maintenance at Vatva. and there was not a single respondent who was highly dissatisfied with the power supply . Naroda. where majority of industries are water dependent. which made us realize that all industries are not equally affected by/ sensitive to all parameters equally. the treatment facility benefit over 600 polluting units by collecting their Primarily treated liquid effluent and Page 69 . they hardly need water for industrial usage. 1 Types of Percenta response ge of . when we asked for the reason they told us that.) There were few industry which were satisfied with water supply even though it was not provided regularly in that particular area.Odhav & Behrampura N o. Respond ent Highly dissatisfie 14 % d Somewhat dissatisfie d Neutral Somewhat satisfied Highly satisfied 8 % 2 3 4 5 28 32 18 % % % Analysis : Basically Vatva is a chemical estate . which was promoted by the Vatva Industries Association. 3) Environmental Issues CETP set up by The Green Environment Co-operative Services Society Ltd. Study of Operations and Maintenance at Vatva.. high level of satisfaction shows that quality of service delivered for this parameter is good ( Subsequently we found out that . which was cheapest among all the studied estate. credit for this goes to regular timely water supply .Management of Estates. Study of Operations and Maintenance at Vatva. Naroda. 38 crore Page 70 .6 crore liters of effluent per day.Odhav & Behrampura giving it secondary treatment and proper disposal. The total investment made by the industries is Rs.Management of Estates. A hi-tech internal collection system followed by technologically advanced treatment plant is capable of handling 1. 1 2 3 4 5 Types of respons e. high degree of satisfaction represents fact that environmental norms were not strict at all Page 71 . these industries were the main culprit for polluting Kharicut canal.Odhav & Behrampura Environmental Norms at Vatva : N o. Highly dissatisfi ed Somewh at dissatisfi ed Neutral Somewh at satisfied Highly satisfied Percenta ge of Responde nt 2% 15% 28% 25% 30% Findings and analysis : Findings from the subsequent research shows that. in general consider environmental norms antagonist to their business. Study of Operations and Maintenance at Vatva. Most industries.Management of Estates. so we can infer. Naroda. Encroachment Findings : There were 42 % of the respondent who either somewhat dissatisfied (22%) or highly dissatisfied (20%) with the quality of service delivered for this parameter. Highly satisfied Somewh at satisfied Neutral Somewh at dissatisfi ed Highly dissatisfi ed Percentage of Respondent 12 % 22 % 3 4 30 20 % % 5 16 % Findings There were 34 % of respondent who were happy with the service delivered for this parameter.Odhav & Behrampura .4)Roads. Study of Operations and Maintenance at Vatva. Analysis: There is enough scope for the improvement in this case. Naroda. There is problem for SWD for which the work of CIP is under progress. 5) Securities .Management of Estates. In entire estate there were many streetlights which were not in working condition. Cleaning . SWD & Streetlight N o. Page 72 . 1 2 Types of respons e. Naroda.Management of Estates. 1 2 3 4 5 Highly dissatisfied Somewhat dissatisfied Neutral of Percentag e of Responde nt 20 % 22 % 30 % 6 % 22 % Somewhat satisfied Highly satisfied There were few respondent who felt that their woman employees working here were vulnerable and unsecured . Study of Operations and Maintenance at Vatva.Odhav & Behrampura No Types . Indeed we also came across a case where one of the respondent told us that their petrol had been stolen from the tanker. response. Sub Sequent findings suggests that The problem of encroachment was less seen here in comparison to other estates Analysis : Page 73 . Naroda. however they were little bit dissatisfied with the kind of shed design . Majority of Respondent were felt that they got land at reasonably better prices . they were neither very satisfied nor very unsatisfied with this parameter as 40 % were neutral. response. Study of Operations and Maintenance at Vatva.Odhav & Behrampura 6) Plots and Sheds : No Types of Percentage . giving freedom to industries to build their sheds in preferable design. People have mixed view for this parameter. as now they are just providing plots. Analysis of the Pilot Study : Page 74 . of Responden t 1 Highly 6 % dissatisfie d 2 Somewha 16 % t dissatisfie d 3 Neutral 40 % 4 Somewha 28 % t satisfied 5 Highly 10 % satisfied Findings and Analysis : Over the period of time GIDC has quit the practicing of building sheds.Management of Estates. Management of Estates. depending upon the types of level of satisfaction. Environmental issues were taken as “ needs improvement” category from the subsequent finding of kharicut canal case study and even. Study of Operations and Maintenance at Vatva. Level of satisfaction = Percentage of respondent who were either somewhat or highly satisfied with the quality of service delivered for that parameter. as shown in the table on next page.Odhav & Behrampura Above mentioned parameters were classified in 3 category 1) Competitive 2) Needs improvement 3) Under developed. Naroda. satisfaction level of industry cannot and should not be taken as symbol good service provided. Page 75 . 2 CATEGORY WISE DESCRIPTION Category A) Chemical and Allied Industry . All industries are not equally affected by and sensitive to all the parameters equally. 2.that parameter doesn’t require much attention. Questionnaire base descriptive survey : All the industries were classified in 3 different category 1) chemical and allied industry 2) Engineering industry 3) Other type of industry.Management of Estates. SWD & Streetlight Securities .Odhav & Behrampura 1 2 3 4 5 Parameter Power Supply Water supply Environmental norms Roads.Parameter Water supply Sample Size 42 Sampling method : Stratified sampling. and As far as the environmental norm is concern . Encroachment Level of satisfaction 100 < N < 66 66 < N < 33 66 < N < 33 33 < 33 < N< N< 0 0 Category Competitive Needs improvement Needs improvement Under developed Under developed Findings of the pilot Study : Power supply is competitive and as GIDC does not play any direct role . Naroda. we can not rely much upon the data provided by industry. Study of Operations and Maintenance at Vatva.6. Where as Water supply is not much concern for engineering type of industry rather they need regular power supply. Cleaning . ( 6% of strata ) Page 76 . Rather chemical based industry are more dependent upon water and CETP norm affect them most. for the purpose of stratified random sampling. For other parameters all the firm were equally sensitive. 1 2 Category Types Number of 2200 industries Chemical Industry. Naroda. 704 3 6 % of 42 chemical industry. Category Percenta ge of responde nt 0 0 4 of total cost of 1) >15 % 2) 10 to 15 % 3) 5 to 10 % Page 77 . This question was asked for error proofing. B) Cost of water procurement as percent production.Odhav & Behrampura No. A) Water requirement is a) Only for domestic usage b) Domestic and Industrial usage both. Findings and Analysis : 100 % respondent were using water for both industrial purpose and domestic purpose in the category of ( water dependent ) chemical industry.Management of Estates. Study of Operations and Maintenance at Vatva. Management of Estates. Study of Operations and Maintenance at Vatva.Odhav & Behrampura 4) <5 % 38 Page 78 . Naroda. home build water storage Industries were reluctant to give the exact answer. 7 per kilo liter. 2 respondent were not sure as they needed water only for 4 hours. ( also see Annexure -2) Analysis : Having bore in operating condition was not economical for industries as they have to pay the extra charges for that to GIDC. only one had the bore which were in operating condition. Almost 40 out of the respondent came with the answer of 16 to 18 hours. Naroda. as their operation stops without water. E) Rate of water per KL ( kilo liter) Answer : Rs. D ) Duration of number. however they are totally dependent upon water for their operation. Though water was not costly for them.Odhav & Behrampura Analysis : Water as cost of production was not significant for 90 % respondent. from other sources except bores and GIDC pipelines . of water supply in hour. Study of Operations and Maintenance at Vatva. rest do not give any response. Page 79 .Management of Estates. here water was available at cheap rate from association. Not having water cost them too much. so industry did not feel the need to keep bore in operating condition. G) Number of respondent who had procured water within last one year . C ) Number of Water bore which were in operating condition Out of total 42 respondent 29 does not posses the bore. F) Number of respondent which had capacity within the plots. Study of Operations and Maintenance at Vatva.Management of Estates.Odhav & Behrampura Answer. became totally unwilling to share any data. Category B ) Engineering Industry Parameter (3) Power supply Sample size 25 Units Page 80 . Naroda. PARAMETER 2 Environmental issue. COD of the out let. as in majority of respondent when asked about the quality of effluent waste they produce. There was not a single respondent who used tankers or any other instruments for procuring water within last one year. Category A ) chemical and allied industries. and practice about reverse boring . However to get the real picture of the situation we followed the case study of Khaticut canal and also tried to approach the GPCB. Subsequently we found a report by parvaran samiti. ( 6% of strata ) Survey for this parameter was aborted . which shows that water availability for 16 hours does not force them to buy water from other sources. ( Effluent treatment and solid waste ) Sample Size 42 Sampling method : Stratified sampling. which he had mentioned in the case study of khari river. Naroda.Odhav & Behrampura No Category . 1 2 3 Type s Number of 2200 industries Engineerin g Industry. Surveyed 660 25 Page 81 .Management of Estates. Study of Operations and Maintenance at Vatva. Study of Operations and Maintenance at Vatva. a electric pole felt down Resulting in power loss.Management of Estates. Naroda.Odhav & Behrampura 1) Satisfaction Level with the level of service delivered. Page 82 . during last monsoon. other wise there was no specific problem. Answer: 80 % respondent were satisfied with the service 2) Number of respondent who were Satisfied with per unit charge on electricity Answer : Surprisingly All of the respondent were satisfied with the charge. for them getting power without any Interruption is more important to them than paying few bucks extra for that. Answer : Respondent came with the answer that. Answer : only respondent said that. 3) Reason for the satisfaction. 4) Any specific complain or recommendation for the power supply . Page 83 . Study of Operations and Maintenance at Vatva. Naroda. Population Water Supply Power Supply Effluent treatment All industries 836 located Naroda (38 % excluding 2200) engineerin g and chemical type. Findings of the pilot study suggest that . There were only 32% of respondent who were happy with the service delivered for this parameter.Odhav & Behrampura C ) Catetegory C(Other) Category C Other. SWD & Streetlight As this parameter was Equally applicable to all 3 category there was no need to go for stratified sampling. To get the actual picture of the situation we tried to collect the various data like 1) Road density 2) Number of street light and 3) SWD . All were satisfied with Power Supply Not applicable.Management of Estates. ____________________________________________________________________ Parameter 4) Roads. They were not dependent much upon water for of their operation. For them water was very cheap in comparison to other estate. Cleaning . 100 % respondent came up with the response that though roads on main lines were good. few of the photographs taken show that industry in general dump its waste on open ground. it should be ideally 0.30 meter. Average Space between 2 street light is 44 meter Street-light : Average Space between 2 street light is 44 meter.Management of Estates. ideally according to world’s best practice. Road density = 0. internal roads that were in bad condition. Encroachment No exact quantified data were available for this parameter. Naroda.Odhav & Behrampura Quality of the roads: The roads were not well constructed.15 to 0. Page 84 . 5) Securities . Study of Operations and Maintenance at Vatva. Findings of the pilot study suggests that 42 % of the respondent were dissatisfied with the service. even we tried to approach AMC but basic data like total number of staff for the area were not available.20 SWD system : Strom water was a major problem here and we found out that no proper storm water drainage system exist over here. Ideally it should be 25. However one need not to have the exact data to know the real condition in this parameter as encroachment problem is clearly visible on the site.08 ht/km. Management of Estates. we may infer that quality of supply provided By GEB is good here. Naroda. Page 85 .7 Naroda Observations of Exploratory Survey (sample size 40 units) 1)Power Supply at Naroda estate.Odhav & Behrampura 2. Study of Operations and Maintenance at Vatva. Findings and Analysis :Majority of the respondent(82%) were happy with the service provided for power supply. 1 2 3 4 5 Types of Naroda Power respons Supply e. Highly 2% dissatisfi ed Somewh 8% at dissatisfi ed Neutral 8% Somewh 22% at satisfied Highly 60% satisfied Page 86 .Management of Estates. Naroda.Odhav & Behrampura N o. Study of Operations and Maintenance at Vatva. percentage of respondent . World’s Practic n Avg best Practice. India Average World’s best Indian practice. Rs. Satisfaction Problem Many of the respondent were not happy light/km delivered. shedsare 2IdentifiedTotal sanitation and dissatisfacti at Yes the Yes Streetligh ESR situated No Yes Yes Yes* on Suggestion Staff should be enough. e Odhav of Behram 3.12. into water bores at their Supplying water directly from bore without ESR . Many cases of 0. Road 0. Particulars. Light 1000 qualitative data suggests that are Bore Bore Bore AMC Bore Varie 38 % 34 % 48 % people 25 % Supplier Torrent Torrent Torrent Torrent less hopeful. proper Level of 6% 10% 8% 0% 110 villages Building thesewerage. ts downstream of KhariProblem Falling down of few poles during Duration of river. Suggestion Better monitoring ) polluted water. However old pipes at Vatva are notof able operating condition industry the process business Level water at Vatva has been have pay extra to withstand the pressure generated by to ESR.5 . dissatisfactio Level Identified with the design of sheds.at research. Rate ailments has been -------. d Road 42 km 20 km 14 km <2 160 Km length Competitive Relatively Satisfaction 28 32 % 16 % 0% Level of Water km Level dissatisfaction advantage power Good 22 % 22 % supply 20 % 75 % WhenUninterrupted river becomes treatment Street 22. Proper where almostand 5 electricity lakh planning monitoring is must.disease. average rain problem marriage should not 5 resulted even in worst proposal at Gamdi village AMC cause the outcome. 33 % of ece. <100% 100 % belt.06 0. has reduced significantly. Study of Operations and Maintenance at Vatva. pressure of ESR.--------effluent directly into UN SWD UN UN UN Poor 30 % above Due to UN chronic health Deliberate falsification Rs/kilo liter Rs.2500 Coverage 100 % 100% 100% 100% 100% Source of satisfied Satisfaction Street 900. streetli Vatva Naroda Odhav Behram TTC m nt MIDC. response.31 service is No Level of 42 No 54 %No 58 % % No 100No No effluent Canal . Must.20 industries were intestinal andsystem.7 open Rs.08 25-35% Distribution 10-15% ______ NA 5 to – 0. as of lately. Area 512 337 127 1 2568 Identified monsoon (rarely) Reverse boring -: 2 supply(hour Bore Remov e hardne ss 25 to 30 meters.18 which Rs. type business Out ofAtotal 30. e practice Poor At least Practi Averag best .64 15 20. Vatva Benchmarking of Water Supply Types of Percentag m Vatva Naroda TTC MIDC. Green Space a NA NA 4 % Pura 0% NA and a v m Coverage dissatisfied MIDC SWD 2 Somewhat 18% Pura .should Practic under 70-80 100 % green e.06 skin. & Behrampura • Annexure 8 Naroda Odhav Behra TTC Indian World’s Averag best Indian World’s e practice. to improve the situation. SWD & 46 No. dissatisfied PricePer Sq 3 Neutral 12% meter (2009) 93% 90% 94% 100% 92 % 4 Somewhat 28% Rs 2500 Rs. n 78 %66 meter 100 % Space 44 86 % 53 meter82 % 51 meter 49 meter NA Suggestion GIDC has already stop theNo practice of between meters Problem High level of encroachment. . Size Cleaning .10 0. people are forced to drink 16 6-10 10 4 5 2 to 4 Min 8. satisfied 18% data<30 water 5 Level N o. Naroda same 40 year old pipes are able to Environmental withstand that meters 1) Population size 12 Level of Encroachment Streetlight dissatisfaction Water supply Plots & Sheds Power pressure very well.but charges to 50 % contaminated % 54 % to 75 % up 183 GIDC. Indian World’s practice. consumptions to Green compensate water To keep water at falsea data to bore mislead Roads. Averag best e.: Naroda.17 area.2500 Rs. results in deliberately provides Authority VIA NIA OIA According to high electrical plot. peace report ground Satisfaction Securities . density loss _ 10% 0. this contradiction led us to the one of Encroachment Streetlight the findings 2) critical Sample size of our project 4 22 % 42 % 18 % 25 % Page 87 Issues . ght Vatv Narod 24% Odha Behra TTC 1 Highly Pura MIDC.110 0. research error in having which One of the critical findings of our project respondent who are dumping the effluent Bore 10 3 bore atrespondent operating codition.75 19. bronchial km/ht unable to throw the found. Practic practice the area e.Highly 350-400 250-300 3000-3500 Staff No concrete quantitative available. of there arewater 4 they started directly logging.15 To avoid the wrath of the stomach problem.61 18.Odhav Management of Estates. Vatva Naroda Odhav Behra TTC Pura Responde Pura MIDC.2500 Rs. Study of Operations and Maintenance at Vatva.Management of Estates. Naroda.Odhav & Behrampura Page 88 .