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Sanand is located in Gujarat
Location in Gujarat, India
Coordinates: 22°59′N 72°23′E / 22.98°N 72.38°E / 22.98; 72.38Coordinates: 22°59′N 72°23′E / 22.98°N 72.38°E / 22.98; 72.38
Country  India
State Gujarat
District Ahmedabad
Elevation 38 m (125 ft)
Population (2011)
 • Total 41,530
 • Official Gujarati, Hindi
Time zone IST (UTC+5:30)
PIN 382 110

Sanand is a city and a municipality in Ahmedabad district in the Indian state of Gujarat. It is best known as the automobile hub of Gujarat.[1][2]


Sanand in map of Ahmedabad district under Bombay Presidency, British India 1877

Sanand is a satellite town of Ahmedabad city. It was ruled by the Vaghelas in the past. The Palace which was built by the Vaghelas is present and it is the home of the royal family of Sanand.[citation needed] The famous artist of the Mewati Gharana, Late Maharana Jaiwant Sinh Vaghela was from the royal family of Sanand. He was a great musician and also the guru of Pandit Jasraj. His son was Late Maharana Rudradutt Sinhji Vaghela of Sanand. His son and the present king of Sanand is Maharana Jaishiv Sinhji Vaghela of Sanand.[citation needed] He has a son who is 18 years old and the present yuvraj Dhruv Sinh Vaghela of Sanand and a daughter Katayayini Sinh Vaghela of Sanand who is 15 years old.[citation needed]

Pandit Jasraj frequently visits Sanand. Historically this place is related to the Pandavas also. When Arjuna was coming back from Godhavi (a nearby village of sanand), it is said that he took rest at this place and felt an immense pleasure. Thus the name of the city came Sa (with) + Anand (pleasure)


Sanand is located at 22°59′N 72°23′E / 22.98°N 72.38°E / 22.98; 72.38.[3] It has an average elevation of 38 metres (124 feet).


As of 2011 India census,[4] Sanand had a population of 41,530. Males constitute 53% of the population and females 47%. Sanand has an average literacy rate of 72%, higher than the national average of 59.5%: male literacy is 79%, and female literacy is 65%. In Sanand, 13% of the population is under 6 years of age.


Sanand is part of the dedicated Viramgam Special Investment Region of Gujarat.

Located near the city of Ahmedabad, Sanand is about 70 kilometers (40 miles) from a recently rebuilt international airport. Sanand is linked to Ahmedabad and Kutch by state highway 17. The state highway 17 joins India's National Highway 8, part of the recently completed 4-lane Golden Quadrilateral highway linking Sanand to many of the major industrial, economic and cultural regions of India.[5] Sanand is connected by a modern highway to Mundra Port, a fully operational and one of the fastest growing, recently expanded sea ports in southeast Asia. Sanand is about 350 kilometers (220 miles) from Mundra port. Sanand is also close to the proposed Dholera port and international airport. Once approved and built, Dholera will provide Sanand with a secondary and competing means of air, ocean and road logistics, both within India and to global markets.

In addition to modern highways, Sanand-Viramgam has an operational broad gauge railway network connecting it to major industrial centers located in Gujarat.

Sanand has become one of the booming entrepreneurial centers in India. Like industrial hubs in the developed countries and export centers in China, Sanand offers the following competitive incentives to companies seeking to set up operations within Sanand region:

  • Income Tax Incentives
  • 10 year corporate tax holiday on export profit – 100% for initial 5 years and 50% for the next 5 years
  • Exemption from dividend distribution tax
  • Indirect Tax Incentives
  • Zero customs duty
  • Zero excise duty
  • Exemption from central sales tax
  • Exemption from service tax

Sanand has recently attracted commitments of billions of US dollars in investments from some of world's largest companies. Some of these companies have already started producing and shipping products, while others have announced facility completion and product shipment within the next 1–3 years. Some examples include:[6]

Tata Motors[edit]

Tata Motors in June 2010 rolled out the first Nano cars from its main manufacturing plant at Northcote Cattle Farm. The construction time was a record breaking 14 months. The cost amounted to 20 Milliard Indian Rupees (Ca. 20 Milliard Euro). During the starting period the production plant employed 2.400 staff. Including the indirect jobs around the plant there were about 10.000 people depending on the initial production. The plant has a capacity to manufacture 250,000 cars a year in the first phase, which will be scaled up to 500,000 cars a year. The project, including Tata Motors plant, vendor facilities and a railway transportation hub near Nidhrad Village, will together generate over 20,000 direct and indirect jobs. This plant uses land of Gujarat Agricultural University which was in the name of Government of Gujarat.

Sanand Nano Land controversy[edit]

The 1100 acres[7] of Land which was allotted to Tata falls in villages Khoda and Bol in Sanand Taluka.

According to one report:[7]

  • Immediately after the Nano deal was sealed, Gujarat Industrial Development Corporation had notified six villages for acquisition in Sanand. Farmers initially were under the impression that the authorities will take away their land for free. In distress, about 3,000 of them protested. The government explained that it was not trying to get their land for free, declared the price of the land at Rs 1,200 per square meter (US$108,000 per acre), four-times better than the market price. The opposition crumbled, farmers enthusiastically cooperated with the government, and agreed to the acquisition.
  • Post-acquisition, the locals claim one of the biggest gains to come out of the Nano project is that the environment in our village has improved drastically. The Gujarat government has placed significant efforts into preventing pollution and improving environmental quality in Sanand. It has given notice to factories, small as well as large, that emit high levels of pollution in the area to either leave or treat the pollutants. This has been well received by rural communities around Sanand.

Tata paid Rs 900/sqm (US$81,000 per acre) to Gujarat Government for the land in Sanand.[8]

Automotive manufacturing is a globally competitive industry. For context purposes, the price paid by Tata may be compared with land prices elsewhere in the world:

  • According to The Financial Times, in 2008, the farmland prices in France were Euro 6,000 per hectare ($2,430 per acre; IN Rs. 1,09,350 per acre).[9]
  • According to the United States Department of Agriculture, as of January 2010, the average farmland value in the United States was $2,140 per acre (IN Rs. 96,300 per acre). The farmland prices in the United States varied between different parts of the country, ranging between $480 per acre to $4,690 per acre.[10]

According to a July 2011 report from the Government of India, the average land productivity from farming in India is less than Rs 22,500 per year per acre (USD 500 per acre per year). The average rural household per capita expenditure/income in 2010, was IN Rs. 11,136 per year (US$252 per year).[11]


  • Car manufacturing plant[12]
  • Stamping plant[12]
  • Car body paintshop[12]
  • Engine plant[12]
  • Final Assembly plant[12]

On 28 July 2011, Ford announced a deal to invest Rs 40 billion[13] (U$906m)[14] to build a plant in Sanand.

The plant, spread over 460 acres,[12] will have a capacity to make 240,000 cars/year and 270,000 engines/year.[14] 5000 people will be employed at the plant,[14] another 25,000 indirectly and another 6000 in ancillary engineering, totalling 36,000 jobs.[8]

Ford chose Gujarat over Tamil Nadu because Tamil Nadu no longer has a surplus of electricity as it did in 1996 when Ford built their plant in Chennai.[13]

The 460 acres was leased to Ford for Rs 1100/sqm while the prevailing market rate in the area is Rs 4000/sqm.[8]

The President of Ford Asia-Pacific-Africa, Joe Hinrichs, said it takes 10 days to transport cars from its Chennai plant to Punjab.[14] Sanand is on the Delhi-Mumbai freight corridor and can reach showrooms in northern states more quickly and cheaply.[15]

Construction of the plant is from end-2011 with car production to begin in 2014.[8]

PSA Peugeot Citroën[edit]

  • Car manufacturing plant[16]
  • Stamping plant[16]
  • body paint shop[16]
  • engine plant[16]
  • gearbox plant[16]
  • Final assembly plant[16]

The French automobile maker signed an agreement with the Gujarat government on the 1st of Septembter 2011.

French car maker PSA Peugeot Citroen has chosen the Indian state of Gujarat to build a 650-million-euro ($928-million) factory capable of turning out 165,000[16] vehicles per year.

The integrated manufacturing and engine and gearbox facility, which should come on line in 2013, will generate 5,000 new jobs in the rapidly developing Sanand automotive cluster.[17]

  • 25% of the production will be exported.[16]

Under the framework of this agreement, Peugeot plans to invest Rs 4,000 crore on a 584 acre[16] site in the heart of the rapidly developing Sanand automotive cluster in Western India.[18]

The agreement was inked between the Gujarat Government officials and representatives of PSA Peugeot Citroen in the presence of chief minister Narendra Modi and Philippe Varin, chairman of the managing board of PSA Peugeot Citroen.

Hitachi Ltd[edit]

Hitachi Hi-Rel Power Electronics Pvt Ltd announced a 60:40 joint venture between Japanese electronics major, Hitachi Ltd and Hi-Rel Electronics Pvt Ltd, an Ahmedabad-based power electronics products maker, is setting up a manufacturing facility of power equipment at Sanand near Ahmedabad.[19]

Other industries[edit]

The Indian pharmaceutical company Cadila Healthcare has a plant to make Generic Medicines at Moraiya within Sanand taluka.

Indian Real Estate giants including DLF,Raheja, Parswanath are in talks to acquire large land area near Sanand to develop major townships close to Ahmedabad. Singapore Based Investment Fund Isobar Global Holdings PTE. LTD. along with Capitaland Trust of Singapore have reportedly acquired large land parcels within Sanand District.

After analysing growth, One More company has been founded in SANAND Named DHS Solution Branch of DHS group is 1. Publication Media, 2.B2B mark, 3.My Office On Cloud—colgate plant, teva pharma, inbisco India plant at sanand ii industrial estate

Industrial land availability[edit]

The state-owned Gujarat Industrial Development Corporation has acquired 5000 acres of land in and around Sanand for future use by industries.[15]


  1. ^ "Peugeot catapults Sanand into big league of auto hubs". Business Standard. September 2, 2011. 
  2. ^ "Peugeot makes a $933m comeback in India". The Financial Times. September 2, 2011. 
  3. ^ Falling Rain Genomics, Inc – Sanand. Retrieved on 2012-07-11.
  4. ^ "Census of India 2001: Data from the 2001 Census, including cities, villages and towns (Provisional)". Census Commission of India. Archived from the original on 2004-06-16. Retrieved 2008-11-01. 
  5. ^ "Gujarat 2011 – Special Investment Regions" (PDF). Government of Gujarat, India. January 2011. 
  6. ^ "Gujarat Newsletter" (PDF). Government of Gujarat, India. September 2011. 
  7. ^ a b From Nano to magna. Retrieved on 2012-07-11.
  8. ^ a b c d Ford takes Tata route, to invest Rs 4K cr in Sanand. Indian Express (2011-07-29). Retrieved on 2012-07-11.
  9. ^ "European farmland hits record prices". The Financial Times. 
  10. ^ "Land use, value and management: Agricultural Land Values". USDA Economic Research Service. 
  12. ^ a b c d e f Business Line : Companies News : Ford drives into Sanand; to invest Rs 4,000 cr in new plant. Retrieved on 2012-07-11.
  13. ^ a b Why Ford chose Sanand in Gujarat to set up its 2nd plant over Chennai – Business Today. (2011-07-30). Retrieved on 2012-07-11.
  14. ^ a b c d Philip, Siddharth (2011-07-28). "Ford Plans to Spend $906 Million on Car Factory in India's Gujarat State". Bloomberg. 
  15. ^ a b Gujarat poised to challenge Chennai as auto-hub, here’s why. Firstpost. Retrieved on 2012-07-11.
  16. ^ a b c d e f g h i "Peugeot to set up Rs 4,000-crore facility in Gujarat". The Hindu (Chennai, India). 2011-09-01. 
  17. ^ Peugeot says to build 650 mn euro car factory in India < French news | Expatica France. Retrieved on 2012-07-11.
  18. ^ Peugeot to set up Rs4,000 cr plant in Gujarat. Hindustan Times (2011-09-01). Retrieved on 2012-07-11.
  19. ^ "Hitachi to set up facility in Sanand". Business Standard. November 2011. 

External links[edit]