Maharashtra Defence Sector

Size: px

Start display at page:

Download "Maharashtra Defence Sector"

Noel Tate
5 years ago
Views:

1 Defence Sector November 2014 Knowledge Partner 1

2 Preface The Defence Sector Profile has been developed by Ernst & Young India LLP, the Knowledge Partner to Industrial Development Corporation to provide hand holding assistance to investors. The intention is to provide executives a quick overview to the Defence Sector in the State. The complex decision-making process involved in undertaking foreign operations requires an intimate knowledge of a country s and a State s commercial climate as well as recognition of the fact that this climate is continuously evolving. Companies doing business in India, or planning to do so, would be welladvised to obtain current and detailed information from experienced professionals. The information presented in this book has been validated w.e.f September Knowledge Partner

3 Macroeconomic Profile - Economy 7.5 's GSDP in INR Lakh Crore LEADER has the highest GSDP in India INR 13.7 Lakh Crore (USD Billion) 8.43% CAGR of GSDP at constant prices over the last 5 years The manufacturing sector contributes a significant per cent to the state s GSDP. Amongst the 10 states with the highest GSDP (Gross State Domestic Product) in India, is one of the leading states in terms of contribution of manufacturing share to the GSDP. has a Per Capita Income (PCI) of INR 1,07,670. The state has the highest per capita income amongst the 10 states with the highest GSDP in India. 3

4 Macroeconomic Profile - Industry 's Industrial Output in INR Lakh Crore LEADER 17.41% Highest Industrial Output in the nation INR Lakh Crore (USD Billion) s share in India s total Industrial Output The state recorded the highest Industrial Value Addition in the nation. The Gross Value Added by all industries in the state amounted to INR 1,79,222 crore (USD billion) in the year , which is 59 per cent greater than the value addition of its closest follower. has the second highest number of factories and has one of the lowest number of industrial disputes in the country. 4

5 Macroeconomic Profile - Investments FDI Inflows in INR Crore 44,664 47,359 LEADER Highest FDI Inflows in the nation 27, One - Third s share in India s FDI Inflows over the period has attracted INR 3,16,082 crore of FDI over the period , which is almost one-third of the nation s total FDI inflows received over the same period. New investment projects announced in which would be set in are proposed to bring in INR 27,795 crore of investment in the state. In , the state contributed per cent of the total projects completed in India in terms of investment value. With a total of INR 28,406 crore of investment projects completed in the state, is one of the leading states in the country in terms of project completion (by investment value). 5

6 Infrastructure ROAD AND RAILWAYS More than 99 per cent of the villages are well connected with all weather roads in the state 9.3 percent of total railway network in the country 2 Major Railway zones Dry Ports, Inland Container Depots, Truck terminals and Railway sidings for easy freight movement AIR AND WATER PORTS 4 International and 7 Domestic Airports 6 MIDC airstrips 2 Major ports per cent of the total cargo traffic of the major ports in India is handled by the Jawaharlal Nehru Port (JNPT) and Mumbai Port (MBPT) 53 Minor ports LAND is the second largest state in India, with an area of 30 Million Hectares (307,713 sq. km.) MIDC has one of the largest land banks in India, with industrial land spanning over 84,000 hectares ENERGY Gross installed capacity of power plants (excluding Central Sector) is MW. The state has the highest Gross installed capacity (Utilities) at per cent of the nation s total installed capacity. Gross Generation of power plants (excluding central sector) is at 77,169.9 million KwH 6

Infrastructure To Gujarat To Madhya Pradesh To Madhya Pradesh Nasik Ozhar Sinnar Shirpur Jalgaon Dhule Aurangabad Shirdi Jalna Akola Nagpur Gondia Bhandara Amravati Wardha Yavatmal Gadchiroli

7 Infrastructure To Gujarat To Madhya Pradesh To Madhya Pradesh Nasik Ozhar Sinnar Shirpur Jalgaon Dhule Aurangabad Shirdi Jalna Akola Nagpur Gondia Bhandara Amravati Wardha Yavatmal Gadchiroli Chandrapur To Chhattisgarh National Highway Railway MIDC Airstrips Domestic Airports Juhu Dighi Thane Mumbai Rajgurunagar Ahmednagar Nanded Raigarh Beed Latur Pune Gangapur Baramati Osmanabad Satara Phaltan Solapur Ratnagiri Karad Sangali To Telangana To Telangana International Airport Key Locations Major Ports Proposed Gas Pipeline Network Kolhapur To Karnataka To Goa Sindhudurg To Goa 7

8 India's Military Expenditure in INR Thousand Crore Defence Sector in India Share in Total Global Defence Imports (By Value) over % 12% 6% 5% 5% 4% India China Pakistan South Korea Singapore Others India s annual military expenditure has grown by over 231 per cent over the decade spanning from 2001 to India has the third largest military in the world and a huge defence expenditure of about 2.5 per cent of its GDP. With a global share of 12 per cent of the world s total imports over the period , the country is the largest importer of defence equipment in the world. The Defence sector in India has seen unprecedented growth and with the FDI ceiling in the Defence sector being relaxed to 49 per cent from the earlier 26 per cent, the country is set to witness a huge growth in the number of greenfield defence equipment manufacturing facilities. 8

9 Defence Sector in Gross Value of Output of the Machinery and Equipment sector in (INR Thousand Crore) LEADER 27.56% s share in India s total industrial output of Manufacture of Machinery and Equipment *Gross Value of Output : Manufacture of Machinery and Equipment N.e.c. LEADER 16% s share in India s total industrial output of Manufacture of Basic Metals; Fabricated Metal Products s existing industrial base, abundant availability of raw materials, and availability of low cost skilled labor, make it the perfect destination for defence equipment manufacturing industries. With a significant share of per cent, the state has the highest share in India s Machinery and Equipment manufacturing sector. The gross industrial output of s Basic Metals & Fabricated Metal Products sector has grown by almost 100 per cent from to

10 Defence Hubs In PUNE AURANGABAD DEFENCE HUBS Aurangabad The districts central location in and its road and rail connectivity makes logistics efficient and cost effective. All industrial areas in the district are classifies as a D or D+ regions, due to which industries here enjoy higher fiscal incentives as per the state s industrial policy Pune Pune is one of the most industrially developed districts in India and hosts a large supplier / vendor base for Defence equipment manufacturing companies. One of the biggest educational hubs in the country, Pune is often referred to as the Oxford of the East for its huge concentration of educational institutions, which has made Pune a global R&D hub for companies in the various sectors such as Auto, Engineering, Information Technology, amongst others. 10

11 Key Growth Drivers Industrial Infrastructure Increased FDI Ceiling Supplier / Vendor Base Availability of Raw Materials One of the largest Defence markets Defence Sector in Top Educational Institutions Cost Effective Skilled Labor Dedicated R&D Institurions In an effort to streamline the industrial licensing process for defence equipment, the Government recently notified the list of defence items requiring industrial licences. The government has published a concise list of defence equipment that will require a licence to manufacture in India and now Dual-use items that have military as well as civilian applications, other than those especially mentioned in the list, will not require industrial licences from the defence angle. 11

12 SKILLED WORKFORCE The state has a literacy rate of per cent with a large base of skilled and industrial labour. The state has a total of 2298 technical institutions with an intake capacity of 4,49,121. It also houses 781 ITIs (Industrial Training institutes) with an intake capacity of 1,17,747. There are 20 universities in the State of which four are agriculture universities, one university for health science course, one university for veterinary science, one for technology and 13 other general universities. In addition to these, there are 21 deemed universities in the State. The state is home to some of the most reputed national R&D institutes, viz., the Centre for Development of Advanced Computing (C-DAC), the Bhabha Atomic Research Centre, the National Environmental Engineering Research Institute, the National Chemical Laboratories and the Tata Institute of Fundamental Research. One of the well-known Indian Institutes of Technology (IITs) is located in Mumbai. Pune is also an important education hub of India, often referred to as the Oxford of the East. Human Capital DEDICATED INSTITUTIONS Table: Technical Educational Institutions in ( ) Type of Institutions No. of institutions Intake capacity Enrolment Engineering ,45,343 6,20,946 Master in computer application ,385 23,614 DRDO s Research & Development Lab in Pune DRDO s research lab in Pune has provided self sufficiency in indigenous development of Combat Engineering Equipment. Over the years, this establishment has acquired expertise in ground system engineering for all the major weapon programmes. 12

13 Policy Support Industrial Policy FISCAL INCENTIVE BASKET Technology Upgradation Subsidy Interest Subsidy Stamp Duty Exemption VAT + CST Abatement Electricity Duty Exemption Cleaner Production Incentives Water Energy Subsidy Water conservation Incentives Royalty Exemption DETERMINING FACTORS Fixed Capital Investment Employment Location Under the state's new Industrial Policy 2013, Mega and Ultra Mega projects can qualify for fiscal incentives upto 100 per cent of the fixed capital investment. Moreover, a 10 per cent additional incentive on top of the above incentives is provided by the state if the project creates double the employment required for the eligibility. The central government's has relaxed the` FDI ceiling in the Defence sector to 49 per cent from the earlier 26 per cent, Moreover, in its budget, the central government has raised the amount allocated for defence spending by 12.5 per cent to Rs 2.29 lakh crore. 13

14 Key Players Tata Motors Defence Solutions Wipro Bharat Forge Ashok Leyland Precision Equipment SM Creative Electronics Selex Galileo Saab Mahindra Centum Kirloskar Larsen & Toubro Mahindra Satyam Electronics Corporation of India Ltd Bharat Dynamics Ltd Hindustan Aernautics Ltd Bharat Earth Movers Limited Mazagon Dock 14

15 Industrial Presence Private Players in the Defence Sector Mahindra Satyam Mahindra and Mahindra Tata Ashok Leyland Kirloskar Bharat Forge Ordinance Factories in Machine Tool Prototype Factory, Thane Ordinance Factor Ambarnath Ammunition Factory Khadki, Pune High Explosive Factory, Khadki,Pune Ordnance Factory Dehu Road, Pune Ordnance Factory Bhandara Ordnance Factory Chandrapur Ordnance Factory Varangaon, Jalgaon Ordnance Factory Bhusawal,Jalgaon Ordnance Factory Ambajhari, Nagpur DEFENCE UNITS IN MAHARASHTRA Defence public sector undertakings Manufacturing units BDL missile unit in Nandgaon Peth, Amravati HAL Manufacture and overhaul of aircraft, Nashik Bharat Earth Movers Ltd, Pune Mazgaon Dock, Mumbai 15

Growth Stories TATA MOTORS DEFENCE SOLUTIONS Tata Motors has been a strategic partner of the Indian

The company s mobility-solutions portfolio has grown from strength to strength to include all classes

Today, Tata Motors proudly partners in enhancing defence, paramilitary and police mobility in the SAARC

Tata s plant at Pune unit is spread over two geographical regions- Pimpri (800 acres) and Chinchwad

16 Growth Stories TATA MOTORS DEFENCE SOLUTIONS Tata Motors has been a strategic partner of the Indian Armed Forces from as early on as The company s mobility-solutions portfolio has grown from strength to strength to include all classes from light to heavy vehicles across the entire defence, paramilitary and police mobility spectrum. Today, Tata Motors proudly partners in enhancing defence, paramilitary and police mobility in the SAARC and ASEAN regions and Africa. Tata s plant at Pune unit is spread over two geographical regions- Pimpri (800 acres) and Chinchwad (130 acres). Tata s Light Specialist Vehicle (LSV), Tata Light Armoured Vehicle, Armoured Safari and Mine Protected Vehicle are manufactured at its Pune plant. Tata Mine Protected Vehicle Tata Light Armoured Troop Carrier TATA Motor s` plant in Pune 16

Contact Us Shri. Bhushan Gagrani (IAS) Chief Executive Officer - MIDC Tel : 022-26870800, 22616547 Fax No : 022-26871587 Email : ceo@midcindia.org Dr. P.

Chief Executive Officer - II Tel : 022-26870142 ; Fax : 022-26871604 Email: yuvrajpoman@midcindia.

Young LLP. ( EY ) to prepare this document and the same has been prepared by EY in consultation with MIDC. This document is for information purposes only.

17 Contact Us Shri. Bhushan Gagrani (IAS) Chief Executive Officer - MIDC Tel : , Fax No : ceo@midcindia.org Dr. P. Anbalagan (IAS) Joint Chief Executive Officer - MIDC Tel : Fax : jtceo@midcindia.org Shri. Yuvraj Poman Dy. Chief Executive Officer - II Tel : ; Fax : yuvrajpoman@midcindia.org Head Office Industrial Development Corporation Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Disclaimer Industrial Development Corporation ( MIDC ) has engaged Ernst & Young LLP. ( EY ) to prepare this document and the same has been prepared by EY in consultation with MIDC. This document is for information purposes only. While due care has been taken during the compilation of this document to ensure that the information is accurate to the best of EY knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. EY does not assume any liability or responsibility to any person for the outcome of decisions taken by such person as a result of any reliance placed on this presentation. EY shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by MIDC and Ernst & Young. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of MIDC. 17

Maharashtra Textile Sector November 2014

Maharashtra Textile Sector November 2014 www.midcindia.org Textile Sector November 2014 Knowledge Partner Preface The Textile Sector Profile has been developed by Ernst & Young India LLP, the Knowledge Partner to Industrial Development Corporation