Au­rangabad: The City of Gates Des­per­ate To Get At­ten­tion

There is a dire need to pull in­vestors and MNCs in Au­rangabad in or­der to es­ca­late the in­dus­trial and com­mer­cial growth

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Named af­ter the Mughal Em­peror Au­rangazeb, Au­rangabad is best known as the ‘City of Gates’. The tourism cap­i­tal of the state of Maharashtra, Au­rangabad houses sev­eral his­tor­i­cal mon­u­ments such as the Ajanta & El­lora Caves and Bibi ka Maqbara. Be­ing a prom­i­nent city in the Marath­wada re­gion, Au­rangabad has grown com­mer­cially and eco­nom­i­cally. How­ever, con­sid­er­ing the progress of the sur­round­ing mar­kets, Au­rangabad is still far be­hind in the race of the de­vel­oped cities in In­dia. In or­der to es­ca­late the in­dus­trial and com­mer­cial growth, there is a dire need to pull in­vestors and MNCs in Au­rangabad.


Au­rangabad is the prom­i­nent city in the Marath­wada re­gion. It has seen a spurt in eco­nomic ac­tiv­i­ties with many in­dus­tries flour­ish­ing and pros­per­ing here in last 10 years. The retail and tourism in­dus­tries have emerged very strong in Au­rangabad. To­day, al­most all the prom­i­nent brands and LFRs are present in the city. Sim­i­larly, the his­toric sig­nif­i­cance of Au­rangabad has boosted tourism and the other oc­cu­pa­tions as­so­ci­ated with tourism such as ho­tel and trans­port in­dus­try.

The education sec­tor has rapidly de­vel­oped in Au­rangabad and the city houses sev­eral pres­ti­gious ed­u­ca­tional in­sti­tutes. Au­rangabad has also emerged a hub of Phar­ma­ceu­ti­cal Education. It has many state govern­ment schools and col­leges for higher stud­ies.


Gen­er­at­ing around 200 crore an­nual rev­enue and op­er­at­ing with around 150 deal­ers, the Au­rangabad IT mar­ket is a scat­tered one with no par­tic­u­lar IT hub to name. The In­for­ma­tion Tech­nol­ogy (IT) in­dus­try is tak­ing a shape in Au­rangabad, how­ever, the city is far be­hind in terms of IT growth as com­pared to cities like Mum­bai, Pune, Nashik and Nag­pur. The city does not have a ded­i­cated IT part or IT clus­ter to at­tract MNCs and start ups. At the same time, many brands do not have their di­rect pres­ence in Au­rangabad and there­fore, it is de­pen­dent on sur­round­ing mar­kets for the pro­cure­ment of hard­ware prod­ucts.

While the hard­ware in­dus­try is grow­ing at its pace, the soft­ware in­dus­try has very lit­tle pres­ence in Au­rangabad. There­fore, when it comes to the de­vel­op­ment of the IT in­dus­try, there are plenty of things that needed to be done to at­tract in­vest­ment in the IT field.


The IT hard­ware busi­ness has been wit­ness­ing de­growth in Au­rangabad since last 2-3 years. The ma­jor rea­sons con­sid­ered for the de growth are E Com­merce, tax­a­tion and ser­vice is­sues. IT re­tail­ers have voiced their con­cerns over the grow­ing threat from on­line busi­ness and want govern­ment to take steps to con­trol the growth of on­line sales. “We saw a sig­nif­i­cant drop in the con­sumer busi­ness dur­ing FY 2015. The de­mand is less and the mar­gins are also shrink­ing day by day. There­fore, many deal­ers are now shift­ing into the other lines of busi­ness such as se­cu­rity and sur­veil­lance” says, Ji­ten­dra Sahuji, owner of Sun­Tech.

Au­rangabad was once known for the as­sem­bled PC busi­ness. How­ever, the less de­mand for as­sem­bling PCs and con­sumer’s grow­ing pref­er­ence to branded prod­ucts ad­versely af­fected the as­sem­bling busi­ness. Many re­sellers are now mov­ing to­wards se­cu­rity and sur­veil­lance busi­ness.

Al­though the IT busi­ness sce­nario is not very en­cour­ag­ing in the city at present, the con­tri­bu­tion from the SOHO seg­ment keep the deal­ers go­ing.


De­spite of OLS fac­tor and LFRs, Au­rangabad IT part­ners are op­ti­mistic about fu­ture growth in the in­dus­try. The in­fra­struc­ture de­vel­op­ment and govern­ment projects are ex­pected to fur­ther lead the eco­nomic growth of Au­rangabad mak­ing it the in­vest­ment friendly desti­na­tion in the coun­try.

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