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


Hyderabad MSME Scenario

Since 2007-08, over half a dozen medium scale enterprises have been established in Hyderabad, and the medium scale enterprises established have been in the IT sector. The major exports from the medium scale sector are from the IT (software) industry. Exports from the neighbouring district of Ranga Reddy district are from pharma, gems and jewellery, engineering products, IT & ITeS products, pharmaceuticals, precision tools, engineering products, garments, basmati rice, spices, software, edible oil etc.

Industrial Snapshot

Some of the major industries in Hyderabad include electrical fans, cooling systems, software industries, gems & jewellery, pharmaceuticals and automotive industries.

The number of registered units in Hyderabad district has grown at a CAGR of 2.8% during 2002-03 to 2011-12.

Cluster Snapshot of Hyderabad

The traditional clusters in Hyderabad are engaged in manufacturing clay and lac bangles, zari work on saris and dresses, brass idol making work, block printing and tying & dyeing, silver foil, leather shoes and chappals, and leather tanning.

Among the service clusters, Hyderabad is a hub of IT industries which are in the micro, small and medium sectors, and also large MNCs such as Microsoft, Infosys, Wipro, Accenture etc are present. Many of these IT clusters border Hyderabad districts, but lie in the Ranga Reddy district.

The Ministry of MSME, Government of India has identified the following non-polluting products as potential for new MSMEs in the Hyderabad district: readymade garments, electronics, software, services like repairing and maintenance of computers, household appliances, consultancy – marketing, nursing homes, professional services, and stock broking and consultancy.

While there exist ample opportunities for growth and development of the MSMEs in Hyderabad, these units also face severe challenges. The major challenges faced by these units include inadequate and irregular supply of power; high cost of land and other infrastructure; High VAT on certain goods, and high cost of land and sheds acting as deterrents to establishing new industries.