AHILYANAGAR

In the past, industries in Ahilyanagar primarily consisted of crafts and village-based activities that served local needs. Many of these traditional industries have withstood the test of time and continue to exist. However, over the 20th century, several mechanized factories have been established in the region. Notable among these are sugar factories, jaggery production units, ginning presses, spinning and weaving mills, oil mills, distilleries, and engineering workshops, all of which provide significant employment opportunities for the local population. Historically, Ahilyanagar has been plagued by famine, which has hindered agricultural resources from fostering industrialization. The lack of agricultural development in the past is likely the main factor behind the absence of industrial growth. Additionally, the district lacks essential minerals, forest resources, and a sufficient water supply, all of which are critical for resource-based industries. However, the introduction of irrigation facilities in the northern talukas has led to a rise in sugarcane cultivation, which in turn has spurred the development of sugar and gul manufacturing industries within the district. 

The sugar industry is a key pillar of Ahilyanagar’s economy, with Asia’s first cooperative sugar factory established in Pravaranagar in 1948 under the leadership of Vithalrao Vikhe Patil. This initiative aimed to empower farmers and reduce dependence on private factory owners. Today, the district houses around 26 sugar manufacturing units, contributing approximately 10.39% of Maharashtra’s sugar exports in 2022-23. Major sugar factories include Ashok Sahakari Sakhar Karkhana Ltd. in Shrirampur, Mula Sahakari Sakhar Karkhana in Sonai, Padmashri Dr. Vitthal Rao Vikhe Patil SSK Limited in Pravaranagar, Sahakarmaharshi Bhausaheb Thorat SSK Ltd. in Amrutnagar, and Tanpure Co. Sugar Factory Ltd. in Rahuri. These mills not only refine sugarcane into sugar but also produce molasses, supporting a thriving distillery industry.

Ahilyanagar is one of Maharashtra’s leading milk-producing districts, supported by a strong cooperative framework. Some of the dairy farms in the region include Prabhat Dairy Group (Sunfresh Agro Industries Pvt. Ltd.) in Shrirampur, Godavari Dairy in Kopargaon, Rajhans (Sangamner Milk Union), and S.R. Thorat Milk Production Pvt. Ltd. in Sangamner. The Sangamner Milk Union, established in 1977, has expanded significantly and now collects around 2.76 lakh liters of milk daily.

The automobile component industry is an essential part of Ahilyanagar's industrial landscape, with several manufacturing units engaged in the production of automotive parts and ancillaries. Prominent companies in this sector include Mahindra & Mahindra, Kinetic Engineering Ltd, and Ahilyanagar Forgings Ltd. This industry plays a crucial role in generating local employment while also supporting the larger automotive sector.

The electronics industry is emerging as a key contributor to Ahilyanagar's economy, specializing in products such as electronic motors and printed circuit boards. Major companies operating in this sector include Crompton Greaves Consumer Electricals, Larsen and Toubro Ltd., and Epitome Components. These firms are primarily based in the Maharashtra Industrial Development Corporation (MIDC) area of Ahilyanagar, which serves as a center for industrial growth and manufacturing.

The Vehicle Research and Development Establishment (VRDE) is a key institution in the aerospace and defense sector, focusing on the research and development of vehicles for defense applications since its relocation to Ahilyanagar in 1947. VRDE collaborates with the automobile industry to enhance vehicle integration into India’s defense forces.

The region is home to several notable pharmaceutical companies, including Pioneer World, Ashwini Pharma, Octanartis Pharmaceuticals, and Trans Pharma Private Limited. These companies offer a diverse range of products, from painkillers and anti-diabetic syrups to antibiotics and dietary supplements.

The growth of the pharmaceutical sector in Ahilyanagar is further supported by the establishment of PCD (Propaganda Cum Distribution) Pharma franchises, allowing entrepreneurs to enter the market with established brand names.

The key industries in Ahilyanagar District are the sugar and dairy industries, both thriving due to the cooperative movement. The sugar industry gained momentum with Asia's first cooperative sugar factory in Pravaranagar, established in 1950 by Dr. Vithalrao Vikhe Patil, empowering farmers by reducing dependence on private owners.

Livestock farming supports the dairy sector, making Ahilyanagar one of  Maharashtra's top milk producer. With over 20 major dairy processing units, institutions like the Sangamner Milk Union play an important role in milk production and distribution.

The food industry is also significant, with 481 food and beverage enterprises, including Jai Jalaram Food Products and local namkeen makers like Ashirvad Chivda

The 1976 Ahmadnagar (now Ahilyanagar) Gazetteer also states that cottage industries were crucial for Ahilyanagar’s economy, offering jobs to different communities.

Some of these cottage industries in Ahilyanagar include:

A significant cottage industry employing many, particularly among the poorer sections of the population. It is mainly concentrated in Ahmadnagar, Nevasa, and Sangamner talukas. The primary raw material is tobacco, along with pan, thread, and packing paper, all sourced from local markets.

In 1961, approximately 1,339 individuals were engaged in making jewelry and silverware. This industry is widespread across both rural and urban areas, with major centers in Ahmadnagar, Sangamner, Parner, Nevasa, Kopargaon, and Pathardi. The artisans are primarily from the Sonar community, traditionally involved in this craft.

This is the most prominent cottage industry in the district. Introduced in Ahmadnagar town soon after its founding in 1499, hand-loom weaving saw significant growth over the years. By 1884, over 3,000 looms were producing high-quality cloth for markets in Pune and Nashik.

These hereditary occupations are held by Sutars (carpenters) and Lohars (blacksmiths), who create or repair agricultural implements in villages and furniture in urban areas. Despite modern machinery, these trades remain vital to the local economy.

A traditional occupation of the Teli community, oil-pressing utilizes oilseeds such as safflower and groundnut. In 1961, there were 461 oil-pressing units across the district, with a focus on both edible and non-edible oils.

Predominantly found in rural areas, this industry employed around 4,665 artisans for jute rope making as per the 1961 Census. Both men and women participate in this craft using sisal and cotton threads.

Manufactured primarily at Pemgiri in Sangamner taluka and other locations like Gardani and Pimpaldari. The industry employs Kanchars from South India who produce bangles of various designs and colors.

Engaged by a small number of people called Lonaris, this seasonal industry operates mainly from February to May in areas like Karjat and Kopargaon. Each pit yields a limited quantity of saltpetre during its season.

Ahilyanagar has been shaped by several influential families who have played a significant role in politics and business. These families have contributed to sectors such as education, agriculture, cooperatives, and entrepreneurship, leaving a lasting impact on the region. Some of the most notable among them include the Vikhe-Patil, Thorat, Gadakh, Jagtap, Lanke, Firodia, Bothara, and Kardile families.

According to the Economic Census of Maharashtra 2013, Ahilyanagar had ~3.4% of establishments financed by the Government of Maharashtra, which was higher than the state average of ~3%. Additionally, establishments with other sources of finance in Ahilyanagar included self-financed entities at ~4.8%, borrowing from financial institutions at ~6.7%, and borrowing from non-financial institutions like money lenders, constituting ~7.3%.        

Water pollution is a major issue in Ahilyanagar District, particularly in the heavily contaminated Sina River. Industrial, commercial, and residential wastewater discharge has severely degraded water quality, making it unsafe for drinking. Industries in the MIDC area release hazardous chemicals, while nearby villages face ongoing water shortages, relying on tankers for supply.        

In recent years, several industries have gained prominence in the Ahilyanagar District. The solar energy sector has seen notable growth, driven by increasing awareness of renewable energy and government incentives promoting solar power adoption. This shift reflects the region's broader movement toward sustainability.

The healthcare industry also expanded significantly, particularly during the COVID-19 pandemic. The demand for medical services led to a sharp rise in pharmacies across Ahilyanagar city, while previously lesser-known hospitals gained recognition and an influx of patients.

Meanwhile, the food and hospitality sectors have flourished, with new cafés and hotels opening in response to growing consumer demand. The coaching industry has also witnessed rapid expansion, with numerous centers emerging to prepare students for competitive exams like JEE and NEET.

The sugar industry, which began thriving in the mid-20th century, remains a cornerstone of the district’s economy. The establishment of sugar factories in the 1950s and 1960s was supported by cooperative banks, government subsidies, and private investments. Local farmers, many of whom inherit land, rely on cooperative banks such as the Ahilyanagar District Central Cooperative Bank for crop loans under the Kisan Credit Card (KCC) scheme. These financial institutions play a crucial role in sustaining both agriculture and dairy production.

Entrepreneurship is deeply embedded in Ahilyanagar’s culture, with many residents aspiring to start their businesses. Women, in particular, play an active role in home-based enterprises, producing items like papad, pickles, noodles, and traditional snacks. In Ahilyanagar city, women from Sindhi Colony near Tarakpur are well known for their homemade food businesses, especially during festivals.

A notable entrepreneur is Sarojini Phadtare from Rahuri Taluka, who won recognition in the ‘Maharashtra Startup Yatra.’ Alongside her husband, she ventured into agricultural production in Vadapuri in 2012, cultivating crops such as sorghum and pearl millet. By integrating modern farming techniques, they developed nutrient-rich, ready-made food products, demonstrating how innovation and traditional agriculture can coexist to create new business opportunities.