Sector Snippet DESTINATION MAHARASHTRA OPPORTUNITY UNLIMITED. Government of Maharashtra. Destination Maharashtra Opportunities Unlimited

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1 Sector Snippet Government of Maharashtra DESTINATION MAHARASHTRA OPPORTUNITY UNLIMITED Destination Maharashtra Opportunities Unlimited

2 Contents Auto and Ancillary Biotechnology Chemicals Food and Agro Gems and Jewellery Information Technology Pharmaceutical Textile

3 AUTO AND ANCILLARY Driving Maharashtra Sector Brief According to Society of Indian Automobile Manufacturers, overall vehicle domestic sales grew by 26.2% in to 15,531,156 units Maharashtra accounts for approximately 38% of the country s output of automobiles by value Maharashtra is the largest base for local OEM players Major automobile clusters in the state are Pune, Nashik, Aurangabad and Nagpur Puneis one is of the largest auto hub of India with over 4,000 manufacturing units only in Pimpri-Chinchwad region Auto & auto ancillaries contributes to 9% of Maharashtra s manufacturing strength Major OEMs and auto ancillary units such as Daimler Chrysler, Fiat, Skoda Auto, John Dierre, Tata Motors, Mahindra & Mahindra, Bajaj Auto, Kinetic Engineering, and Bharat Forge, have their presence in the state Maharashtra Auto industry s presence across the Value Chain Raw Materials Engineering Research and Design Auto Parts Production Supply of Auto Parts Assembly of Auto Parts Marketing/ Exports Strong Medium Mumbai Pune Aurangabad Nashik Shendre Chakan Pune Aurangabad Shendre Chakan Nagpur Pune Mumbai Kolhapur Ahmadnagar Pune Nashik Mumbai Pune Mumbai Government Initiative Automatic approval for foreign equity investment up to 100% of manufacture of automobiles and components is permitted The automobile industry is de-licensed and Import of components is freely allowed The current policy allows Weighted Tax Deduction under I.T. Act, 1961 for sponsored research and in-house R&D expenditure to 200% and 175% respectively Vehicle manufacturers will also be considered for a rebate on the applicable excise duty Maharashtra Industrial Development Corporation, Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Board Numbers: / 54 / 73, Fax: , ceo@midcindia.com Website:

4 Investment Regions Legend National Highway Railway International Airport Domestic Airport Major Ports Key Locations Industry Cluster MSEZ Notified Multi- ProductSEZ as on March 2011 Notified Multi Product SEZs 1 Navi Mumbai SEZ Pvt Ltd, Thane 2 Sunny Vista, Bhokarpada, Panvel 3 Navi Mumbai SEZ Pvt Ltd., Ulwe,Navi Mumbai, Thane 4 Indiabulls Industrial infrastructure Ltd, At Gulvanch, Musalgaon 5 Bharat Forge Ltd. (JV MIDC), Village Gulani, Dist Pune 6 MADC, Nagpur FDI Thetotal FDIinvestment in the Automobile sector sector till September 2010 was INR 895 crore Key Players

5 BIOTECHNOLOGY Fueling the future Sector Brief The western biotech cluster is India s leading cluster with 46percent share in the overall revenues of INR 14,199 crore Maharashtra is the top contributor with percent share of the total biotech revenues Maharashtra is base for top bioagri companies such as Monsanto, Mahyco and Ajeet Seeds Punebased Serum Institute of India (INR 850 crore contributed for about 13percent of Maharashtra biotech revenue and 6percent of overall India biotech industry revenue Mumbai is ranked as the top Biotech city of India Four of India s top 10 services companies (CROs) are also based out of Maharashtra including the No 1 CRO in the Indian industry Quintiles India Maharashtra Biotech industry s presence across the Value Chain Maharashtra Industrial Development Corporation, Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Board Numbers: / 54 / 73, Fax: , ceo@midcindia.com Website:

6 Government Initiatives Industrial power tariff applicable to all BT industries engaged in the production of high-end products. BT unit will be exempted from paying electricity duty. Twice the admissible Floor Space Index would be admissible for Biotechnology units in Parks promoted by MIDC. The agriculture biotech units would be provided power at agriculture tariff. The State Government will promote setting up of Biotechnology Parks, R&D Centresand pilot plant facilities for undertaking contract research by putting equity stakes in such projects. Investment Regions Legend NationalHighway Railway International Airport Domestic Airport Major Ports KeyLocations Industry Cluster SEZs MSEZ Parks Notified Biotech SEZ as on March 2011 Notified Multi- Product SEZ as on March 2011 BT Parks as on March 2011 FDI The total FDI investment in the Drugs and pharmaceuticals till September 2010 was INR 1012 crore Notified Biotech sector based SEZs 1 Mahindra & Mahindra Ltd., Owale,Ghodbunder Rd, Thane 2 SaloniBussiness Park Pvt. Ltd, Mumbai 3 Uttam Galva Steels Ltd (UGCL),Devnhave, Khalapur, Raigad 4 YashprabhaEnterprises, Ratnagiri 5 Ajanta Projects Ltd., Aurangabad 6 Serum Bio Pharma Park, Pune 7 IntenationalBiotech Park Ltd.,Hinjewadi, Pune Key Players

7 CHEMICAL Accelerating Growth Sector Brief The chemical industry accounts for about 17.6% of the output of the manufacturing sector and around 11% in total exports of the country The industry registered a growth of 16% from FY In terms of volume, India is 12th largest in the world and 2nd largest in the developing world after China Maharashtra has strong presence in chemical, petrochemicals, oil and gas sector Maharashtra contributes 27.4% of total chemicals, petrochemicals and oil and gas output and around 15% of the total production of basic petrochemical products in India Mumbai, Nagothane, Rabale& Patalgangaare major petrochemical hubs while Thane, Mumbai, Pune and Wardhaare chemical hubs Maharashtra Chemical industry s presence across the Value Chain Raw Materials (Crude Oil, Chemicals) Intermediate (Petro Products, Granules etc) Functional Chemical Synthesis Value Addition & Processing Finished Intermediate By Products Mumbai (Bombay High), Pune Mumbai, Mahape, Patalgangaand Pune Mumbai, Thane-Belapur Tarapur, Aurangabad and Pune Strong Medium Government Initiatives InChemical Sector, 100% FDI is permissible. Manufacture of most chemical products inter-alia covering organic / inorganic, dyestuffs & pesticides is delicensed Entrepreneurs are allowed to set up chemical industries through the Industrial Entrepreneurs Memorandum (IEM) route In the Union Budget , the Department of Chemicals and Petrochemicals was granted an outlay of USD 5.12 Billion continued in the next page Maharashtra Industrial Development Corporation, Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Board Numbers: / 54 / 73, Fax: , ceo@midcindia.com Website:

8 Government Initiatives continued To mitigate the impact of anti dumping, Government has imposed 20% safeguard on soda ash In Union Budget , Plans are underway to set up port-based chemicals parks in SEZs to encourage clustering, provide infrastructure and enable tax concessions Downstream SEZs have been planned to use the output of chemicals parks Investment Regions Legend NationalHighway Railway International Airport Domestic Airport Major Ports KeyLocations Industry Cluster SEZ MSEZ Notified Textile SEZ as on March 2011 Notified Multi- ProductSEZ as on March 2011 Notified Multi Product SEZs 1 Navi Mumbai SEZ Pvt Ltd, Thane 2 Sunny Vista, Bhokarpada, Panvel 3 Navi Mumbai SEZ Pvt Ltd., Ulwe,Navi Mumbai, Thane Notified SEZs 1 Ajanta Projects Ltd., Shendra, Aurangabad 4 Indiabulls Industrial infrastructure Ltd, At Gulvanch, Musalgaon 5 Bharat Forge Ltd. (JV MIDC), Village Gulani, Dist Pune 6 MADC, Nagpur FDI Thetotal FDIinvestment in the Chemicals &Fertilisers sector till September 2010 was INR 2,666 crore Key Players

9 FOOD AND AGRO Escalating Competency Sector Brief India is one of the world s largest producers as well as consumers of food and food products Maharashtra is a bio-diverse state with 9 agro climatic zones and varying soil types, suitable for agricultural development The export from Maharashtra for fresh vegetables and fruits accounts for 30% and for processed food products is almost 50%. Mumbai port (MbPT) and Jawaharlal Nehru Port (JNPT) are major ports used for exporting processed food products The state has a strong skill base with a total of 73 institution with an intake capacity of 5,895 students including 4 Agriculture Universities and 5 national level research organizations Maharashtra has 8 Agricultural Export Zones (AEZ) Maharashtra Food and Agro industry s presence across the Value Chain Maharashtra has the highest gross value addition to food products in the country 16.18% Its strengths lies across the value chain with a strong focus on processed food segment Fresh fruits and vegetables Cereals and other crops Floriculture Poultry products Farmers/ Primary production Dairy products Wholesalers / Mandis Food processors Traders / Exporters Milk marketing cooperatives Retailers & food service (domestic) Retailers & food service (export) C O N S U M E R S Maharashtra Industrial Development Corporation, Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Board Numbers: / 54 / 73, Fax: , ceo@midcindia.com Website:

10 Government Initiative Food processing industries have been put in the list of priority sectors for bank lending An Agro processing policy exclusively for the state is in pipeline Income tax deduction of 100% profit for first five years and 25% profit for the next five years has been allowed in case of new agro-processing industries Fruit and vegetable processing units have been completely exempted from paying excise duty Automatic approval for foreign equity up to 100% is permitted for most of the processed food items Investment Regions Legend NationalHighway Railway International Airport Domestic Airport Major Ports KeyLocations Industry Cluster SEZ MSEZ Notified PharmaSEZ as on March 2011 Notified Multi- ProductSEZ as on March 2011 Notified Multi Product SEZs 1 Navi Mumbai SEZ Pvt Ltd, Thane 2 Sunny Vista, Bhokarpada, Panvel 3 Navi Mumbai SEZ Pvt Ltd., Ulwe,Navi Mumbai, Thane FDI 4 Indiabulls Industrial infrastructure Ltd, At Gulvanch, Musalgaon Notified SEZs 5 Bharat Forge Ltd. (JV MIDC), Village Gulani, Dist Pune 1 MIDC Additional Latur 6 MADC, Nagpur Thetotal FDIinvestment in the Food processing sector till September 2010 was INR 1039 crore Key Players

11 GEMS AND JEWELLERY Radiance of Success Sector Brief The Indian G & J sector is highly dominated by unorganized players and is fragmented in nature. Organized players constitutes only 4 6 % of the sector According to a report by FICCI, the Indian gems and jewellery sector is expected to grow at a CAGR of around 15% to reach a size of USD 58bn by 2015 from current USD 25bn Gems and Jewelleryexports from India, the largest supplier, rose by 46 % in the period , according to GJEPC Gems and jewelleryclusters in the state is concentrated in various regions of Mumbai Mumbai continues to be the main diamond trading center of India accounting for dispatch of 93% of total diamond exports. Maharashtra Gems and Jewellery industry s presence across the Value Chain Strong Medium Mining Processing Fabrication Retailing Diamond Mumbai Mumbai All Districts Gold Mumbai, Pune Mumbai All Districts Platinum Mumbai, Pune, Nagpur Others Mumbai Mumbai All Districts Government Initiative 100 % foreign direct investment (FDI) allowed in G&J through the automatic route The Indian FDI retail FDI policy permits 51 % ownership of single brand retail stores All industrial undertakings of G&J are exempted from obtaining an industrial license to manufacture Service Tax services (related to exports) which are rendered abroad have been exempted To neutralize duty incidence on gold jewellery exports, duty drawback is allowed on such exports Maharashtra Industrial Development Corporation, Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Board Numbers: / 54 / 73, Fax: , ceo@midcindia.com Website:

12 Investment Regions Legend NationalHighway Railway International Airport Domestic Airport Major Ports KeyLocations Industry Cluster SEZ MSEZ Notified G&J SEZ as on March 2011 Notified Multi- ProductSEZ as on March 2011 Notified Multi Product SEZs 1 Navi Mumbai SEZ Pvt Ltd, Thane Notified G&J sector based SEZs 1 Navi Mumbai SEZ Pvt Ltd, Thane 2 GitanjaliGems Ltd. Chiravat, Panvel, Raigad 2 Sunny Vista, Bhokarpada, Panvel 3 Navi Mumbai SEZ Pvt Ltd., Ulwe,Navi Mumbai, Thane 4 Indiabulls Industrial infrastructure Ltd, At Gulvanch, Musalgaon, Sinnar 5 Bharat Forge Ltd. (JV MIDC), Village Gulani, Dist Pune 6 MADC, Nagpur Key Players

13 INFORMATION TECHNOLOGY An Engine of Global Economic Growth Sector Brief The Domestic IT Services segment aggregated export revenues of USD 33.5 Billion, accounting for 57% of total exports The software export has grown from INR crore on to INR crore in Information Technology contributes to % of state FDI projects Maharashtra contributes for more than 30% of the country's total export of software 36 public IT park has been established by MIDC and CIDCO with 4,351 units and an investment of USD 3.84 Billion Maharashtra has 425 private IT park, out of which 88 are functional The State houses more than 1,200 software units Maharashtra Information Technology industry s presence across the Value Chain Research & Development Product/Software Development Consulting Outsourcing Mumbai and Pune Pune, Mumbai, Thane and Nashik Mumbai and Pune Mumbai, Pune, Nashik, Nagpur and Thane Strong Medium Government Initiatives Additional FSI for IT parks and recreational, residential and other support facilities will be provided Eligible IT-ITES units covered under PSI will be exempt from payment of Electricity Duty IT/ITES units will be supplied power at industrial rates Property tax shall be levied on IT-ITES units at par with residential rates VAT on sale of IT products will generally be charged at the minimum floor rate Maharashtra Industrial Development Corporation, Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Board Numbers: / 54 / 73, Fax: , ceo@midcindia.com Website:

14 Investment Regions Legend NationalHighway Notified Multi Product SEZs 1 Navi Mumbai SEZ Pvt Ltd, Thane 2 Sunny Vista, Bhokarpada, Panvel 3 Navi Mumbai SEZ Pvt Ltd., Ulwe,Navi Mumbai, Thane 4 Indiabulls Industrial infrastructure Ltd, At Gulvanch, Musalgaon, Sinnar 5 Bharat Forge Ltd. (JV MIDC), Village Gulani, Dist Pune 6 MADC, Nagpur IT Parks SEZ MSEZ Railway International Airport Domestic Airport Major Ports KeyLocations IT Parks as on May 2011 Notified IT SEZ as on March 2011 Notified Multi- ProductSEZ as on March 2011 FDI Thetotal FDIinvestment in the ITsector till September 2010 was INR crore Key Players

15 PHARMACEUTICAL The Next Revolution Sector Brief The Indian Retail Pharmaceutical Market has grown at 16.5% over India s export of pharmaceutical products increased from USD 7.24 Billion in & to USD 9.35 Billion in Maharashtra leads in Pharmaceutical exports with a share of 38% Maharashtra accounts for 28% ( hectares) of total area of Pharma& Biotech SEZ having formal approval. The state accounts for about 40 percent of the India s pharmaceutical market with Manufacturing strength of 29.7% (in ) Drugs & Pharmaceuticals contribute to 1.21 % of state FDI projects Out of 13 PharmaMNCs in India, nine MNCs have established strong presence in Maharashtra The major cluster in the state are Mumbai, Thane, Tarapur, Aurangabad and Pune Maharashtra has a strong R&D base with major centre as Bioresearch Centre, Bioinformatics Centre, Serum Institute etc. Maharashtra has 3,139 Pharmaceutical manufacturing units Maharashtra Pharmaceutical industry s presence across the Value Chain Research and development value chain Manufacturing value chain Validation, optimization and formulation testing Clinical development Custom chemical synthesis APIs and intermediates Formulations NDDS and other advanced technologies Mumbai Pune Mumbai Pune Mumbai, Thane- Belapur Tarapur Aurangabad Pune Strong Medium Government Initiatives 100% FDI is allowed under the automatic route in the drugs and pharmaceuticals sector including those involving use of recombinant technology Budget reduced the customs duty from 10% to 5% on imports of select life saving drugs, conjugate vaccine and Micafungin sodium for injection continued in the next page Maharashtra Industrial Development Corporation, Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Board Numbers: / 54 / 73, Fax: , ceo@midcindia.com Website:

16 Government Initiatives continued Patent and proprietary medicines included under chapter 30 of the Customs Tariff Act, 1975 which are imported for retail sale are exempted from special additional duty Budget increased the excise duty to 1% on medicaments excluding those used in ayurvedic, unami, siddha, homeopathic or bio-chemic systems Investment Regions Legend NationalHighway Railway International Airport Domestic Airport Major Ports KeyLocations Industry Cluster SEZ MSEZ Notified Pharma SEZ as on March 2011 Notified Multi- ProductSEZ as on March 2011 FDI The total FDI investment in the Drugs and Pharma sector till September 2010 was INR 1012 crore Notified Multi Product SEZs 1 Navi Mumbai SEZ 2 Ajanta Projects Ltd., Shendra, Aurangabad 3 MIDC Krushnoor, Nanded 4 Wokhardt Infra.Dev.Ltd, Aurangabad 5 Serum Bio Pharma Park, Pune 6 MIDC, Lote Parshuram, Ratnagiri Key Players

17 TEXTILE Weaving the Future Sector Brief Indian textile industry is estimated to be at USD 51.4 billion The industry accounts for 4% of the country s GDP and 14% of its industrial production Maharashtra contributes to about 10.4% to India s textiles and apparels output Maharashtra has the largest area under cultivation for cotton (33.4%) The State has witnessed 122 major textile projects with an investment of USD 224 Million Largest number of the sector s 100% export oriented units, with a count of 560 are based in Maharashtra Maharashtra Textile industry s presence across the Value Chain Process Unit Raw material Ginning Ginning mills Spinning Spinning mills Weaving units Weaving Knitting Knitting units Composite mills Processing Processing units Stitching (Garment/apparel production) Apparel manufacturers Output cotton, jute, silk and wool Fibers* Yarn Fabric Processed fabric Garment Technical / Industrial / Functional Textiles Government Initiatives 100% FDI is allowed in textile sector under the automatic route National Textile Policy,2000 deals with productivity enhancement, export focus and financing support to the industry National FibrePolicy is being put in place with a view on strengthening all fibresegments through interest and capital subsidies and technology upgradation The Scheme for Integrated Textile Park (SITP) was approved to facilitate setting up of textiles parks with world class infrastructure facilities. 40 textiles park projects have been sanctioned under the SITP. continued in the next page Maharashtra Industrial Development Corporation, Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Board Numbers: / 54 / 73, Fax: , ceo@midcindia.com Website:

18 Government Initiatives continued Nagpur is one of the 12 Apparel Parks for Exports (AEP) sanctioned for increasing apparel exports The Technology Upgradation Fund Scheme(TUFS) has seen a total sanctioned in vestment of USD 3.87 billion from 2004 to 2009 for projects in Maharashtra Textile Centre Infrastructure Development Scheme (TCIDS) - 3 towns have been identified within Maharashtra ( Solapur, Bhiwandi, Malegaon) to be developed with infrastructure for textile industries Investment Regions Legend NationalHighway Railway International Airport Domestic Airport Major Ports KeyLocations Industry Cluster SEZ MSEZ Notified Textile SEZ as on March 2011 Notified Multi- ProductSEZ as on March 2011 Notified SEZs 1 MIDC, Chincholi Dist. Solapur 2 MIDC, Yavtmal 3 MIDC, Nandgaon Peth, Dist-Amravati 4 MIDC, Butibori, Dist.Nagpur FDI Thetotal FDIinvestment in the textile sector till September 2010 was INR 1051 crore Key Players

19 Dr. K. Shivaji Chief Executive Officer Tel No : , Fax No : ceo@midcindia.org Investor Facilitation cell Rajesh Narvekar General Manager, Marketing Tel No : Fax No : rajeshnarvekar@midcindia. org Head Office Maharashtra Industrial Development Corporation Udyog Sarathi, Mahakali Caves Road, Andheri(E), Mumbai Principal Office Maharashtra Industrial Development Corporation 4(A), 12th floor, World Trade Centre Complex, 1 Cuffe Parade, Colaba, Mumbai ** To know more on Maharashtra, please subscribe to our monthly newsletter MahaConnect at mahaconnect@midcindia.org