Hyderabad was founded on the banks of the Musi river in the present day Andhra Pradesh by Muhammad Quli Qutb Shah, Sultan of the Qutb Shahi dynasty, in 1590; this relocation was intended to relieve a water shortage the dynasty had experienced at their old headquarters at Golkonda. They ruled over the Telangana region and some parts of present day Karnataka and Maharashtra.Theories explaining the origins and etymology behind Hyderabad's name differ. A popular theory suggests that after founding the city, Muhammad Quli fell in love with and married a local Banjara girl known as Bhagamathi. He named this city after her as Bhagyanagaram. Upon her conversion to Islam, Bhagamathi changed her name to Hyder Mahal — and the new city's name was correspondingly changed to match it, resulting in the eponymous name "Hyderabad" (literally, "the city of Hyder").

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Hyderabad city is located in the center of Andhra Pradesh, in the region of Telangana. It lies on the Deccan Plateau, 541 meters (1776 ft) above sea level, over an area of 260 km² (100 mile²). The original city of Hyderabad was founded on the banks of river Musi. Now known as the historic old city, home to the Charminar and Makkah Masjid, it lies on the southern bank of the river. The city has grown over the centuries on both banks and is now a metropolitan area that spreads out from the Musi river. Temperature: 25 - 40 degrees Celsius. Annual precipitation: About 60 cm. Geological system: Archean. Soil: Red Sandy, with areas of Black Cotton soil. Surrounding terrain: Rocky/hilly. (The region around Hyderabad is known for its beautiful rock formations. There are many rock formation enthusiasts in the city.) Climatic: Tropical Wet and Dry (Koppen).

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Hyderabad is known as the city of pearls, lakes and, lately, for its IT Companies. The pearl market is situated near Charminar. Ornaments made with Rice Pearls can be bought from Char Kaman or the General Bazaar Market. Products such as silverware, saris, Nirmal and Kalamkari paintings and artifacts, unique Bidri handcrafted items, lacquer bangles studded with stones, silk-ware, cotton-ware and handloom-based clothing materials are made and traded through the city for centuries. Andhra Pradesh inherited from the State of Hyderabad great academic institutes and research labs, both public and private institutes with very diverse areas of interest from Developmental Banking at the Institute for Development in Research and Banking Technology. The infrastructural facilities for basic research in Hyderabad are some of the best in the country, hosting a large academic population from all over the country and beyond.Hyderabad is a major center for pharmaceuticals with companies such as Dr. Reddy's Laboratories, Matrix Laboratories, Hetero Drugs Limited, Divis Labs, Aurobindo Pharma Limited and Vimta Labs being housed in the city.

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