Jamnagar: Jewel of Kathiawar requires a boost to grow

Popular as the Jewel of Kathiawar, Jamnagar is one of the fasted developing cities in the state of Gujarat. Blessed with abundant natural resources, wild life and rich cultural heritage, the city provides all favorable factors for industrial growth. Rapid industrialization has created lot of prospects for IT industry in the city. However, compared to other industries, IT is growing at a slow pace and it requires boost from the government as well as industrial giants.

Strategic Location

Jamnagar is very important place from national security point of view due to its strategic location near Indo-Pakistan border. It lies just to the south of the Gulf of Kutch, some 337 kilometres west of the state capital, Gandhinagar. It has base stations of all three wings of Defence.

City’s advanced transportation further escalates business operations. Jamnagar has an airport which allows commercial flights. It has an all-weather intermediate Bedi seaport through which various merchandise are imported and exported. Jamnagar has a railway station connected with a variety of destinations across India. There are daily Volvo buses running between Jamnagar and Ahmedabad by various operators. Recently State Transport has started a new service between Jamnagar and Ahmedabad Airport.

Rich Resources

Jamnagar is one of the few cities in India which are gifted with precious Oil reserver and abundant natural resources. It is known as 'World's Oil City'. It has scenic Islands and Beaches, Hills, Temples, Palaces, Forest, Bird Sanctuary and Marine Sanctuaries. It also has fascinating Corals and Marine Life in the Marine National Park. Jamnagar is also known as city of temples. It is well known for its four marble Jain temples: Vardhman Shah's Temple, Raisi Shah's Temple, Sheth's Temple, and Vasupujya Swami's Temple. There are more than 30 Jain Temples in Jamnagar. In is one of the cities with high literacy rate. According to 2011 census, Jamnagar has an average literacy rate of 74 percent, higher than the national average of 59 percent.

Industrial Hub

Formerly known as the “Brass City”, Jamnagar has transformed into industrial hub with arrival of several giant companies. Reliance Industries has established the world's largest oil refinery near the village of Moti Khavdi in Jamnagar. Essar Oil refinery has also set up its plant near the town of Vadinar. Jamnagar has plentiful reserves of bauxite which contributes nearly 96 per cent of the total production in the state.  It is also famous for its Bandhni clothes. Approximately 10% of its income derives from this industry and it is exported outside of India.

Scope of IT

Partners say that the government needs to give special emphasis on the city as it posses the capabilities to become a major IT hub in the state of Gujarat.

Nilesh Bhatt, president of Jamnagar Information Technology Association (JITA), a prominent association of IT says, “Jamnagar posses all the qualities to become first preference of IT entrepreneurs. However, the IT is growing at a very slow pace.”

Bhatt said that the infrastructural development and IT institutes in the city will further escalate the growth of the industry. Bhatt also demanded regulation on E Commerce as it has largely impacted businesses of small retailers and resellers.

“Some of resellers have either shut down their businesses or looking for other other options for their livelihood. This is very serious issue and it is severely affecting the channel community. We are not against E Commerce but we strongly against their business practices”, says Bhatt.

Jayesh Patel, owner of Dimex Computech says, “Despite of being major industrial hub, there are hardly any benefits derive from industries. There is less scope for IT resellers in the city as big companies prefer to buy ICT products directly from vendors.”

Patel said that the companies should encourage business from local resellers to help them grow their business.

A Road Ahead

Jamnagar posses all the potentials to become a IT hub in the state of Gujarat. Favorable factors like industrialization and infrastructural development has given lot of prospects for the IT industry to grow and flourish. However, there is need for more efforts on part of the government and industrial giants to help the industry to prosper.

IT in Jamnagar at a Glance

Key Verticals: Refinery Industries, Textiles and Education

Key Brands: HP, Lenovo, D Link, Canon, Dell, Quickheal

IT Partners: 120 Approx

IT Association: Jamnagar Information Technology Association (JITA)

Interview 1

Nilesh Bhatt, Triotronick System

Nilesh Bhatt, Triotronick System

What are the key challenges of IT Resellers in Jamnagar?

E Commerce is a major threat to Reseller community in the city. Online giants selling their products below the landed cost is the major issue of concerns for small retailers. We cannot sustain and survive in such business scenario. Online sale has resulted in sluggish growth of the traditional channel. We demand level playing field for both online and offline partners. Apart from E Commerce, service related issue is another challenge faced by partners. Resellers do not get proper service related assistance from some of the vendors.

How do you analyze the growth of ICT market in Jamnagar?

ICT market has certainly slowed down in the last three years. The major reasons are E Commerce and customers changing preferences. With smart phones and tablets are coming in Desktop and laptops market is diminishing especially in the consumer segment. Profits margins have cut down due to competition from online sellers. Therefore, now a day many resellers are offering value added services along with box pushing to maintain growth.

Interview 2

Jayesh Patel, Dimex Computech

Jayesh Patel, Dimex Computech

Do you think that big industries will benefit the overall growth of IT in the city?

Big industries come to Jamnagar and set up their plants, however, it hardly benefits IT resellers. Big companies make bulk ICT purchases directly from vendors. There is very less scope for local resellers to take advantage of bulk buying of companies.

Do you have any specific issues with vendors?

Company’s changing policies regarding invoice is the major issue in Jamnagar. Now-a-day, most of retailers issue computer generated invoice to customers. This invoice has mentioned of all the necessary details of purchase. However, companies rejects to validate the invoice citing the reasons that it does not have rubber stamp and signature. It unnecessarily creates trouble for us as well as our customers. Therefore, we demand that company should issue pre notification on their policies regarding invoice copy.