PIMPRI CHINCHWA: With its broad roads, glass exterior buildings and heavy investment flow, the twin township of Pimpri-Chinchwad and adjoining industrial zones portrays a rising India.

As the economic situation turns around, private investment picks up and more foreign investors arrive, the industrial belt is poised for richer benefits.

In the last six months, the big promises have translated into actual investment __electronics giant Foxconn has committed $5 billion (Rs 32,000 crore), a sizeable part of which is expected to go to Talegaon. Mahindra and Mahindra has announced a Rs 700 crore investment in expanding its platform in its trucks division and ThyssenKrupp will invest Rs 300 crore in a multi-purpose manufacturing facility in Chakan. American automotive giant General Motors will invest $1 billion (Rs 6,400 crore) in expanding its manufacturing plant in Talegaon.

The township's bigger and better infrastructure__ one of the premier MIDC estates in the state, amenable weather for most part of the year, a less erratic water and power supply, proximity to Nhava Sheva port which is about 120km, Mumbai airport and availability of skilled manpower peg Pimpri Chinchwad and the adjoining regions as a sought-after place for business.

The industrial development is closely tied to the manufacturing activity in the country. "Since its inception in the 1960s, manufacturing has been the focus. Since then, several companies have been keen on setting up manufacturing facilities here," a Tata Motors spokesperson said.

The entire industrial belt, which includes Talegaon and Chakan zones, in addition to the core industrial areas of Bhosari, Kudalwadi, Talawade, Moshi, Pimpri and Chinchwad is home to about 10,000 micro, small and medium enterprises. About 70 per cent of them feed directly off the auto ecosystem in the township that has evolved over the years.

The twin township has not remained insulated from the overall slowdown in the economy as witnessed by the tepid auto sales or nearly comatose private investment activity nationally. "About 75% of the SMEs are operating at less than half the capacity," president of Pimpri Chinchwad Small Industries' Association Nitin Bankar said.

In the last decade, German auto maker Volkswagen made Pimpri Chinchwad its address in India, while another German luxury car maker Mercedes Benz has enhanced its presence around the township significantly. Also, American auto giant General Motors has its largest footprint in the country in Talegaon. Influx of global brands has meant that while people have more choice, local car makers have to up the game faster and significantly.

"This has changed the complexion of the auto industry...the quality of vendors have also improved significantly," said Anant Sardeshmukh, director general, Mahratta Chamber of Commerce Industries & Agriculture. "Earlier, original equipment manufacturers were tied to only one automaker, but now they have diversified with improved facilities and many have emerged stronger," he said.

There are about 100 large companies across the township's industrial belt. This cluster of micro, small, medium and large enterprises provides direct employment to about 4 lakh men and women. Indirect employment like work to shop keepers, transporters and other allied activities make up another one lakh people, industry participants estimate.

Sardeshmukh also sees the growth of electronics and semiconductor industry in the area. "There is an increased usage of electronics components in automobiles and it is a definite pointer to the growth of that industry as well, supported by the state government," he added.

MN Vidyashankar, president of India Electronics and Semiconductor Association (IESA), said the future prospects are positive as the "final approval for the electronics cluster will soon be done by the central government. PCMC area has the maximum scope due to the already established supply chain in the automotive clusters."

Hinjewadi's IT cluster, a region that contributes about $7 billion, or 6.5% of the country's total software exports, is close to Pimpri Chinchwad. Home to about 120 IT firms, the region employs 1.8 lakh people directly and an estimated twice the amount of men and women indirectly. Here, much hinges on the plans for infrastructure falling in place.

