Comparison of the Four Cities

Indore: Trading centre and emerging logistics hub due to its strategic location in central India
between Delhi and Mumbai. Key industries include automobile, metallurgy and agro-industries.
Witnessing growth in IT/ITES sector and development of IT parks. SEZ’s leading to real estate
development across residential, retail and logistics sectors.

Bhopal: It is the capital of Madhya Pradesh. Major Tourist attractions like Kanha, Ujjain and Sanchi
are close by and well connected.

Surat: Major industrial city of Gujarat state, known for its textiles and diamond industries. One of
the fastest growing cities in the world in population terms. Infrastructure is gradually improving and
new airport opened in 2007. Residential and retail are the most active sectors.

Vadodara: Vadodara, or Baroda, is a major industrial hub of Gujarat state. Key sectors include
petrochemicals, pharmaceuticals, engineering and plastics. Benefits from proximity to Mumbai,
Ahmedabad and Gujarat ports. Developing as an IT hub, with IT parks and SEZ’s developing along the
Gandhinagar-Ahmedabad–Vadodara Knowledge Corridor. High income per capita.

Comments

Looking at the quantitative data and qualitative data also, we see the following trends:-

 Surat and Vadodara are the highest in terms of economic, growth factors. These have the
highest potential for Regional airlines connectivity.
 Out of these two also Surat inspite of being high on economic scale has very poor air
connectivity.
 In the MP cities, Indore is quite ahead in terms of economic development.
 Bhopal on the other hand, is not that ahead in terms of economic development. Although
there are places of tourist interest around Bhopal like Sanchi and Panchmarhi.
 Comparing these four cities, Surat and Vadodara in Gujarat have the highest potential.
Although we will be carrying out an analysis of presence of competitors. Since we have
found many articles about the presence and launch of regional airlines in Gujarat but we
have not been able to find credible information about the same on the DGCA website.
 Quantitative Comparison
(A is the best, E is the worst in Alphabetical scales used)

  Surat Vadodara Indore Bhopal

Core Indicators         
Estimated 2010 Population 3344135 1539428 1854930 1792203
• Income/Capita (USD 2006) 1,435 2,240 1,233  
• GDP Growth State Level (% pa 2003-05) 6.40% 6.40% 2.90% 2.90%
Number of Multiplexes 0 5 4 0
Number of Malls 0 8 7 5
PSUs 0 5 2 8
Above 1000 Crores Turnover 2 9 6 4
Sanchi,
Tourist Places Nearby       Panchmarhi
Diamond, Petrochemicals,
Any Major Industry Textile Pharmaceuticals Automobile BHEL
Car Dealerships 19 7 13 16
BANK DEPOSITS 09 (in Rs. Crore) 13934 22526 16244 20671
BBDO MII 146.69 141.99    
BBDO MPV 169.34 119.41    
IT PAID 07/08 (in Rs. Crore) 1137 1112 547 1132
IT RANK 15 17 38 16
Distance from Railway Station to Airport 5 6 7 8
FLTS/DAY 2008-09  None 17 36 17
No of Train Arrivals 212 302 148 195
No of Train Departures 213 302 147 198
CRS BOOKINGS 91358 160433 140643 61709
AVG INCOME (in $) 3737 3665 2891 2782
Total Traffic (Dom+Intl) 2008-09 None 444573 599009 229716
Real Estate Investment         
• Transparency E D C E
• Transaction Costs (Stamp Duty) 4.90% 4.90% 8.00% 8.00%
Real Estate Activity         
• Retail C D C D
• Offices E D E E
• Hotels E D E E
City Competitiveness         
• Infrastructure / Connectivity C D E E
• Human Capital E D C D
Real Estate Demand         
• Retail C D C D
• Offices E D E E
• Hotels E E E E
Real Estate Stock         
• Shopping Centres C E C D
• Offices D E D D
• 4 & 5 - Star Hotels D D D E
Infrastructure         
• Power - Quality & Cost B D B C
Human Capital         
• Literacy Rate (%) 69.10% 69.10% 63.70% 74.60%
• Higher Education Institutes at State
Level 931 931 1,100 1,100
Comparison of the States the Cities belong to
Gujarat features Second in the list of States that are likely to be more than 50 percent Urbanized by
2030. While Madhya Pradesh Stands on Tenth position.

In terms of Per Capita Urban GDP in 2030, Gujarat ranks First while Madhya Pradesh ranks
Nineteenth. In terms of total Urban GDP, Gujarat is Second while MP is Fourteenth.
Gujarat is one of the Fastest growing states in terms of GDP and also rates high on Urbanization.
While Madhya Pradesh is lowest on GDP growth and quite low on Urbanization.

The predictions till 2030 also show the same trend of Madhya Pradesh lagging in development.
Comparison of the Cities
Accordingto McKinsey study, Surat, Vadodara, Indore are rated as Tier 2 cities while Bhopal is rated
as a Tier 3 City.

Both Surat and Vadodara feature in the list of Thirteen cities that will have a population of more
than 4 million by 2030. Bhopal and Indore are not on the list.
Surat and Vadodara feature in the list of cities that require per capita investment exceeding $200,
while Indore and Bhopal are not on the list.

In terms of warehousing potential following criteria are taken into account. Airways is also a Sub-
Criteria in this.
In terms of Warehousing attractiveness Surat ranks Ninth, Vadodara ranks Eighteenth, Indore ranks
Twentieth while Bhopal features as a Tertiary Hub.