Will IT shine in Bhavnagar?

Bhavnagar, one of the important city in the state of Gujarat, is known for its socialism, cultural legacy and hospitality. A land of reformists, thinkers, educationists and freedom fighters, Bhavnagar is one of the historically and strategically important places in India. A hub of several important industries, Bhavnager can be called as a shelter of thousands of small and medium scale industries. Despite of viability, the IT industry has so far lacked behind compare to other flourishing industries like diamond industry and shipping industry in Bhavnagar and it is in a desperate need of assistance from the policy makers.

The Cultural Capital of Saurashtra

Home to socialism, reforms, and cultural legacy, Bhavnagar is known as the cultural capital of Saurashtra.  The artists and literary luminaries of Bhavnagar have immensely contributed to the culture of the city. Bhavnagar is known for pioneering efforts in the fields of education. It is a land of reformers such as Nanabhai Bhatt, Gijubhai Badheka, Manbhai Bhatt (Founder of Shishuvihar), Harbhai Trivedi, Gijubhai Badheka, and Taraben Modak who brought a sun rise in the field of education.

Industrial Development

Due to its proximity to the Gulf of Cambay and the Arabian Sea, Bhavnagar always remained a strategic point for commercial activities. Diamond industry is the prominent industry in Bhavnagar. It stands second in India in the diamond cutting and polishing industry after Surat.

Bhavnagar district is the largest producer of salt, with around 34,500 tons of salt being produced annually. The Alang ship breaking yard (considered the world's largest graveyard of ships) is located on the Gulf of Khambat. It has enabled the emergence of thousands of supporting industries such as repairing and servicing, textiles, chemicals, glass and ceramics, and wood products in the district.

The city is a prominent trading post for cotton products. Bhavnagar is a hub of Micro, Small and Medium Enterprises. According to Industries Commissionerate, Government of Gujarat, there are 4389 MSME in Bhavnagar district, which provides employment to more than 3 lakh people.

Bhavnagar at a Glance...

IT Association: Bhavnagar Information Technology Association

Number of Resellers: 125 (Approx)

Key Verticals: Diamond Industry, Tourism, Small Scale Industries, Government

Key Brands: Dell, Lenovo, I Ball, D Link, Canon, HP, Quick Heal

Why IT lacks behind?

Despite of all favourable conditions required for growth and development of any industry, IT industry has not yet received its deserving attention in Bhavnagar. The absence of large IT companies is seen as the prominent reason for sluggish growth.

Virat Pandya, owner of Veepra Enterprise said, “No big vendor has his head office or unit in Bhavnagar. All the big businesses are concentrated in the cities like Ahmadabad and Surat. Secondly, there is no much investment on part of the government in big projects that have integration with IT on large scale. The government and industries needs to look at this city from the investment perspective to boost the industry.”

Bhavnagar also faces challenge from surrounding IT markets. Dealers and distributors from surrounding cities do direct selling in Bhavnagar, hence, taking away business from local players.

“Distributors and big resellers from Ahmadabad and Rajkot bill their products in Bhavnagar and try to take away our share. This is mainly because most of vendors and distributors do not have their head/branch offices in the city and therefore, they source products from other places”, said Alpesh Gujarati, owner of Alphabet Computer Consultancy.

Gujarati said Online Sales was the other biggest challenge in Bhavnagar. He said that the predatory pricing policies of OLS portals had forced small dealers to divert to other businesses.

Scope of IT

Bhavnagar can be considered as one of the unexplored IT markets with huge business prospects. However, it needs attention from the government as well as the IT giants. With no scarcity of talent and manpower and proper industrial and IT policy in place, Bhavnagar could soon rise as the IT hub of Saurashtra region.

Interview 1

Virat Pandya, President, Bhavnagar Information Technology Association

How do you analyze the growth of IT industry in Bhavnagar in last 3 years?

Virat Pandya: The market is growing, however, at a very slow pace. OLS has curtailed margins of resellers. To sustain in the business, many resellers are moving beyond box sealing. However, Bhavnagar still relies on surrounding markets like Jamnagar and Ahmadabad for business. There is a need to bring big industries in the city to facilitate industrial growth. The government needs to develop an IT infrastructure and provide a fair chance to the local IT players.

What are the major challenges faced by the IT reseller community in Bhavnagar?

Virat Pandya: OLS is a major issue and it has definitely impacted the business. Apart from OLS, absence of service centers and lack of proper service support from vendors is another challenge resellers face in Bhavnagar. No big vendor or distributor has his head office in the city. We require to travel to surrounding areas to solve service issues with the products.