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Chakan MIDC Exodus 20 Companies Consider Moving Putting 4000 Jobs at Risk

  • Writer: Griha Realty
    Griha Realty
  • Aug 13
  • 2 min read
Chakan MIDC Exodus 20 Companies Consider Moving Putting 4000 Jobs at Risk
Created by: Ajjay Bhagyakar

Chakan MIDC, one of Maharashtra’s prominent automobile and manufacturing hubs, is facing a serious infrastructure challenge. According to the latest reports, proprietors of around 20 MSMEs are initiating the process of shifting their manufacturing units away from Chakan, with the potential movement putting nearly 4,000 direct and indirect jobs at risk.


The major concerns are familiar but increasingly severe: pothole-ridden roads, persistent traffic congestion, frequent accidents and delays in industrial logistics.


Business owners say employees can spend up to two hours travelling just a few kilometres, affecting both productivity and quality of life.

Nearly ₹1,000 Crore in Business Could Move

The proposed relocation could have a significant economic impact. The companies involved reportedly represent a combined annual turnover of nearly ₹1,000 crore.


Instead of continuing to deal with deteriorating connectivity, the industrialists have formed an association and are exploring industrial plots in Khandala MIDC and the Shirwal region of Satara district, where better road conditions and smoother logistics could offer a more sustainable operating environment.


The issue is not entirely new. In 2024, industry representatives had already warned that companies were considering relocation because of infrastructure, traffic, rising land costs and other operational challenges.

Why Chakan’s Roads Matter to Industry

Chakan is a major manufacturing cluster with large automobile and engineering companies. Traffic congestion affects more than employee commuting—it can delay the movement of raw materials, components and finished products, directly impacting production schedules and supply chains.


Earlier reports from the Federation of Chakan Industries estimated industrial losses from traffic disruptions at around ₹20 crore per day, highlighting the economic scale of the connectivity problem.

₹368 Crore Road Upgrade Offers a Possible Solution

There is, however, a major infrastructure response underway. MIDC has initiated road projects worth around ₹368 crore in Chakan, including six-lane concrete road stretches, improvements connecting industrial areas and upgrades across multiple MIDC phases. Some major works are targeted for completion by June 2027.


The proposed improvements could help restore Chakan’s competitiveness—but industry leaders are seeking faster action, Chakan MIDC Exodus 20 Companies Consider Moving Putting 4000 Jobs at Risk.

What It Means for Pune’s Industrial Future Chakan MIDC Exodus 20 Companies Consider Moving Putting 4000 Jobs at Risk

The situation highlights an important lesson: industrial growth needs infrastructure to keep pace with investment. If companies begin moving to alternative locations such as Khandala and Shirwal, the impact could extend beyond individual businesses to employment, logistics, local ccdemand and the wider Pune–Satara industrial corridor.


For Chakan, the question now is simple: Can infrastructure improvements arrive before more companies decide to leave?

Published by: Griha Realty

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