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Dun & Bradstreet - Oriental Bank of Commerce SME Cluster Series 2014 : Hyderabad


Cluster Overview


About Hyderabad

Hyderabad, also popularly known as the Pearl City famous for its pearls and glass embedded bangles, was founded during the Qutub Shahi dynasty. It was founded in 1591 by Mohammed Quli Qutub Shah, the fifth sultan of Qutub Shahi dynasty, and covers the twin cities of Hyderabad and Secunderabad.

Hyderabad is recognized as the bulk drug capital of India, accounting for one-third of India’s total bulk drug production. A large number of bulk drug units are located in and around Hyderabad with good infrastructure and trained manpower.

The Hyderabad city is a model for IT industry, and is also known as Cyberabad or as Hitech City of India, as the city has one of the largest concentrations of software technology companies in India. Besides Hyderabad, other major cities such as Visakhapatnam and Vijayawada are also emerging as potential IT hubs because of cost advantage and other enabling factors.



In terms of population, Hyderabad is the 10th largest district in Andhra Pradesh. However, in terms of density of population, it leads among the various districts in Andhra Pradesh, with a population density of 18,480 persons per sq km. Between 2001 and 2011, Hyderabad reported decadal population growth rate of 4.71%.

At 80.96%, Hyderabad has the highest literacy rate among all the districts in the state of Andhra Pradesh, and way above the state-level literacy rate of 67.66%.

Economic Overview

The gross district domestic product of Hyderabad contributed a significant 9.15% to the gross state domestic product of Andhra Pradesh in FY11. At ` 343.6 billion during FY11, the GSDP of Hyderabad grew by 15% over FY10. Hyderabad has been consistently outperforming Andhra Pradesh in terms of growth in gross domestic product, as can be seen in the chart below.

Pharma Sector in Hyderabad

Hyderabad, which accounts for around one-third of India’s total bulk drug production, is considered as the bulk drug capital of the country. There are a large number of bulk drug units located in and around Hyderabad with good infrastructure and trained manpower.

The Hyderabad pharma cluster is located in and around Hyderabad, and spreads in the adjacent districts of Ranga Reddy, Medak and Nalgonda. The history and growth of the drugs and pharmaceutical industry in Andhra Pradesh can be traced to the establishment of Indian Drugs & Pharmaceutical Ltd by the Government of India with the objective of providing essential drugs at a competitive cost.

Andhra Pradesh offers excellent opportunities for the growth of the pharmaceutical industry due to availability of trained and skilled manpower, as also research and development facilities, including the Indian Institute of Chemical Technology, CCMB, NIN, CDFT and many universities.

IT Sector in Hyderabad

Hyderabad is also known as Hitech City of India or Cyberabad, Cyberabad is the newly-created exclusive zone developed by the government of Andhra Pradesh to give a boost to the development of IT infrastructure.

Hyderabad has witnessed healthy economic growth in the last few years and has strengthened its position as one of the best investment destinations for the IT & ITeS industry. Hyderabad is emerging as one of the fastest growing IT cities in India and is the fourth largest exporter of software products and services.

A NASSCOM study on assessment of 50 Indian cities as potential hub for IT industry has listed Hyderabad as one of the leaders in the sector because of enabling factors such as the high availability of talent pool, enabling business environment, presence of recognized IT-BPO companies, IT parks, SEZs and government support. Apart from these, the other important factors that contribute to the success of Andhra Pradesh as a whole and Hyderabad in particular are excellent road and rail connectivity with the major metros.

Hyderabad is one of the first cities in the country to have initiated coordinated and comprehensive development strategies towards development of the IT industry, leading to the development of the techno-township called Hitech City in Madhapur in the late 1990s.

The Hyderabad city is a model for the IT Industry and is called ‘Cybercity’. Leading IT companies are situated in Hyderabad. The Software Technology Park of India (STPI) established at Hyderabad plays an important role in the growth of the IT industry in Andhra Pradesh. Further, the Hitec City located at Madhapur in R R district is a modern IT Business park, spreading over 150 acres of land with about five lakh square feet of floor space for IT companies.