Vadodara with its vast industrial setup is a major contributor to the gross domestic product of the state of Gujarat. The beginning of this industrial revolution is attributed to the vision of the Gaekwad clan who had established the first bank in the city, the Bank of Baroda in the early twentieth century. The early recognition of the necessity of stable finances for a strong industrial growth by Sayajirao gave a head start to the city of Vadodara and it has never looked back.

The chemical industry took root in Vadodara in the year 1907 when Alembic Pharmaceuticals, a modern factory was set up. Then the city saw a deluge in the chemical sector and today the all the big names are located in or around Vadodara. The few important ones are the Gujarat Refinery, Indian Petrochemicals Limited or IPCL, Sarabhai Chemicals, Gujarat Dyestuff and Indian Dyestuff.

Production Process Integration. The government of India also recognized the strategic benefits of locating petrochemical industries in and around Vadodara. Public sector units like Oil and Natural Gas Corporation, Gujarat Industries Power Company and the Indian government’s Heavy Water Project have been setup to take advantage of production process integration. The industries like Gujarat State Fertilizers and Chemicals and Gujarat Alkalies and Chemicals also utilize the byproducts of the petroleum industry. The cycle of byproduct utilization has spiraled and numerous small scale and cottage plastic industries have come up in the city.

R&D Tie-ups. The development of the chemical industries has been supported by the research tie-up with Maharaja Sayajirao University in Vadodara. The multi million dollar industries like the Sun Pharmaceuticals, Zydus Cadilla and Panacea Biotech have MS University as the partner institute. Today more than hundred thousand workers are employed by the industries in Vadodara.

Positional Advantage. The proximity of Mumbai and the ports in Gujarat, ease of movement of raw material and the infrastructure development in the region helped in the rapid industrialization of the region as a whole. The proximity of the financial capital Mumbai gave the distinctive stock trading community to Vadodara. You could do stock trading sipping a cup of tea in ramshackle tea shops of Vadodara. Many a stock broking scams have their roots traced to this city. Today the number of stock brokers in the city surpasses the number of doctors. Many say that visiting your broker regularly is the secret of longevity in Vadodara.