A Smart Business City

A Smart Business City INDEX

India : Overview

Introduction to MSEZ

Location & Connectivity

Quick Start Advantage

Robust Infrastructure

Master Plan

Attractive Incentives

Latest Developments INDIAN ECONOMY AT A GLANCE

5 MANUFACTURING INDUSTRY 4 6 3 7 2.066 23.6% TRILLION US $ 2 8 330.5 25% TARGET SHARE IN GDP ’s GDP SIZE BILLION US $ 16% 1 9 MANUFACTURING CONTRIBUTION TO GDP 7.5% SIZE GDP GROWTH (Q4 EXPORTS 0 14-15) 10 CONTRIBUTION TO GDP

SOURCE : WORLD BANK SOURCE : WORLD BANK & WWW.DATA.GOV.IN

SOURCE : NASSCOM IT/ITES INDUSTRY TOP MANUFACTURING STATES 201 50.74 BILLION US $ MILLION EMPLOYEES EXPORTS FOR FY 147 99 2.8 11-12 Billion US $ Billion US $ INDUSTRY SIZE EXPORTS MILLION EMPLOYEES PETROCHEMICAL CHEMICALS PRODUCTS

TOP EXPORTED PRODUCTS FROM TAMIL NADU FOOD INDIA KARNATKA TAMIL TELANGAN MAHARASH TEXTILES MAHARASHTRA PRODUCTS NADU A TRA GUJARAT ENGINEERING 13% PRODCUTS TOP PERFORMING STATES GROWTH RATE India : An Attractive Manufacturing Destination

LOW LABOUR COSTS INFRASTRUCTURE ADVANTAGE Manufacturing wages in India are Huge investments in creating public lowest in the world. India’s labour and industrial infrastructure through wages are $ 1.5 per hour compared to PPP are paying rich dividends in China’s $ 3.0 per hour attracting investments

DEMOGRAPHIC ADVANTAGE ATTRACTIVE MARKET India has abundant, young and Second largest populous country with English speaking work force increasing per-capita income - an attractive market Global Manufacturing Competitiveness

India : 2nd lowest labour costs in ADJUSTED LABOUR COSTS FOR PRODUCTIVITY

50 the world 45.4

45 39.1

40 37.9

37.3

36.2

35.8 35.2

35 33.9 30.4

30

27.3

25.6 24.2

25 23.4

22.7

21.8 18.2

20 17.8

16.2 15.5

15

10.9 10.2

10 8.9 7.2

5 4.3 1.3

0

Italy

India

Spain Japan

China

Brazil

Russia

France

Poland

Austria

Taiwan Canada

Mexico

Sweden

Belgium

Thailand

Australia

Germany

Indonesia

Switzerland

Netherlands

South Korea South

United States United Czech Republic Czech Source : Boston Consulting Group kingdom United https://www.bcgperspectives.com/content/interactive/lean_manufacturing_globalization_bcg_global_manufacturing_cost_competitiveness_index/ Other Cost Advantages

Improved profitability RESEARCH, DESIGN & DEV. COSTS when compared to Low-cost, high quality engineering talent matured markets 1 REDUCED CAPITAL COSTS 2 Low construction and fabrication costs BETTER ASSET UTILISATION 3 shift 7 day a wk. policy compared to matured 3 markets that follow 2 shift 5 day a wk. policy India : Investors Expectations Vs. Opportunities

Expectations Opportunities

Ease of Doing Business ‘MakeinIndia’ and competition between the States are addressing ‘Ease of doing Business’

Infrastructure Creation of SEZs, Ind. Parks & Roads, Ports, Airports etc

Govt. initiatives for skill development and abundant Skilled Manpower engineering talent

Favourable Govt. Policies Economic labour costs

Domestic Demand Robust domestic demand

Research & Design Capabilities ~ 80 of fortune 500 cos. have R&D centres in India India : Overview

Introduction to MSEZ

Location & Connectivity

Quick Start Advantage

Robust Infrastructure

Master Plan

Attractive Incentives

Latest Developments MSEZ : Overview

Integrated industrial development Located 14 Kms from consisting of city center

– Multi Product SEZ A 1620 acres project – Robust infrastructure with plug & play facility Attracted investments over Rs.13000 crores so far – Planned social infra – residential, healthcare etc Promoted by industry majors Promoters

KCCI & Others 1%

KIADB Infrastructure Leasing & Oil & Natural Gas 23% Financing Services Corporation IL &FS 50 % ONGC 26 %

Karnataka Industrial Areas Kanara Chamber of Development Board Commerce & Industry Key Advantages

Integrated Clear Title Development Land

Quick Start Well Connected By Advantage Rail, Road, Air and Sea

Environment Availability of Clearance Feedstock nearby

Attractive Hazardous solid waste Incentives disposal

Port Effluent Collection, Connectivity Treatment & Disposal India : Overview

Introduction to MSEZ

Location & Connectivity

Quick Start Advantage

Robust Infrastructure

Master Plan

Attractive Incentives

Latest Developments A Versatile Location

UK

Middle East Malaysia

Singapore

Australia South Africa A Versatile Location

Bangalore Mangalore

Mangalore is the second largest industrialized city in the state of Karnataka. Location Map

14 Kms to Mangalore City Center 8 Kms to Mangalore Port 5 Kms to Intl Airport Port Connectivity

Mangalore Port : Congestion-free port

Deepest in west coast (15 mtrs draft)

All-weather port

8th largest by volume handled Connectivity

Connected to 3 National Highways International Airport with direct Connected to 3 Railway networks - NH 48, Mangalore to connectivity to Middle East - Konkan Railways - NH 66, Mumbai to Cochin - South Western Railways - NH 13, Solapur to Mangalore - Southern Railways Strategic Location

ADVANTAGE KARNATAKA ADVANTAGE MANGALORE

Among top 5 industrialized states in India A vibrant port city with high literacy rate of 90%

Highly skilled human resources One of the best city for doing business in India

Home to 80 fortune 500 companies Hosts one of the 12 major seaports in India

Largest exporter of IT/ITES services from India Education hub with 4 universities and 6 autonomous colleges in the radius of 50 Kms World’s 4th largest Technology Cluster Employs 10,000 IT/ITES professionals. Poised to 3rd largest share of FDI flows into India grow to 1 lakh by 2020

Best city to live with superior healthcare, education and entertainment facilities Social Life

Srinivas NITK School Hotel Suraj Apart from MSEZ’s planned Social Infra, Mangalore Hospital (10 KM) (10 KM) Intl. (8.5 KM) offers excellent living facilities National Inst. of Railway Hotel Maharaja Techgy. (10 KM) Station (9 KM) (7 KM) Delhi Public Chirashree The Lalit • Good connectivity to global & Indian cities School (9 KM) Hospital (7 KM) Intl. Hotel (6 KM) • Well reputed educational institutes across the Beach city offering KG to PG education. (8 KM) Mangalore • Schools : Lourdes, Mount Carmel, DPS, Port (8 KM) Canara, Sharada Vidyalaya & Cambridge Intl. Airport school etc. MSEZ (5 KM) • Colleges : NIT - Karnataka, , Yenepoya, KPT, NITTE, SDM etc • Water sports at Panambur beach, 3 shopping malls with international brands and multiplexes Mangala Sports Stadium (12 KM) • Well reputed hospitals – Manipal KMC and Yenepoya. Ayurvedic medicines TA Pai Convention Center (14 KM) Yenepoya Manipal KMC City Center Biological Hospital (15 KM) Hospital (15 KM) Mall (15 KM) Park (20 KM) City Bus Central Railway Cambridge Intl. Amusement & Stand (17 KM) Station (17 KM) School (20 KM) Water Park(20 KM) India : Overview

Introduction to MSEZ

Location & Connectivity

Quick Start Advantage

Robust Infrastructure

Master Plan

Attractive Incentives

Latest Developments Quick Start Advantage

Environment Clearance Feedstock Availability – Overall Environment Clearance – From neighboring companies for the SEZ from Ministry of – Companies with in SEZ Environment & Forests (MoEF, Delhi) in place – Duty-free imports from Middle East – Units need to take state level clearances Plug & Play Infrastructure – The blanket clearance help units – Robust industrial infrastructure in MSEZ to reduce substantial with reliable power, water supply, lead time to start the operations effluent & solid waste management system in place – Planned social infrastructure

24/7 security & CCTV Clear Title Land. Acquired Surveillance Through Govt. of Karnataka Hassel-free from Environment Clearance

4 Hearing Hearing will be done based on the solutions provided and necessary Public Hearing changes are conveyed for the next • Public hearing is to be organized meeting (Generally these meetings • Should incorporate objections and 3 are held every month) solutions

2 Environment Impact Assessment (EIA) • Based on TOR, EIA is required to be done • EIA to be submitted along with the Terms of Reference (TOR) management plan • TOR to be approved • Depending on the scale of investment, TOR needs to be 1 submitted to State Govt./Central Govt. for approval

Units in MSEZ need not have to go through above steps and hence can reduce substantial lead time to start. India : Overview

Introduction to MSEZ

Location & Connectivity

Quick Start Advantage

Robust Infrastructure

Master Plan

Attractive Incentives

Latest Developments Infrastructure – At a Glance

Pipeline-cum-road corridor connecting to Fire fighting ring main Fire tenders port

Effluent collection, Well planned wide roads treatment & disposal Secured zone with network boundary wall

Abundant water supply Reliable power supply Common Effluent from river source from state grid Treatment Plant (CEPT)

Marine disposal facility Pipeline-cum-road Corridor

Direct connectivity to Mangalore Seaport to SEZ with a pipeline-cum-road corridor Internal Roads

Well planned wide roads -50 mtrs, 35 mtrs, 24 mtrs ROW Power

• Reliable power sourcing from state grid through 220 KV Sub-Station • 190 MVA sanctioned • Supply at 110/33/11 KV through automated Sub- Station Water Source

• 15 MGD water sanctioned by Karnataka Govt. • From rivers of Nethravati and Gurupur • Pumping infrastructure from water source to SEZ is in place Water Treatment Plant

• Treated water supply to the units • Water Storage Reservoirs of 120 ML • State-of-the-art distribution lines with gravity Tertiary Treatment Plant

• First of its kind TTP in India with a capacity of 5 MGD • Sourcing water from secondary treated sewerage treatment plant • Additional water storage of 120 ML for treated water within SEZ • Fit for industrial use Common Effluent Treatment Plant

• Common Effluent Treatment Plant • Re-distribution of treated water to industrial units

Representative image – W.I.P Marine Outfall Discharge

Image taken during installation

Treated waste water disposal pipeline from project to 1.2 kms inside the sea Emergency & Security Services

• Fire fighting ring main network of 4.3 kms with pressurized pipeline • 3 fire tenders of varied specifications of water, foam and powder • 22/7 CCTV surveillance & security system Representative images – W.I.P India : Overview

Introduction to MSEZ

Location & Connectivity

Quick Start Advantage

Robust Infrastructure

Master Plan

Attractive Incentives

Latest Developments Master Plan

Only 25% of plots left

Plots available

Plots already committed

Green area India : Overview

Introduction to MSEZ

Location & Connectivity

Quick Start Advantage

Robust Infrastructure

Master Plan

Attractive Incentives

Latest Developments Attractive SEZ incentives

On Capital Goods, Components, Consumables, Raw Materials & Spares • Duty free imports & domestic Procurement • Exemption of Excise Duty • Refund of Sales Tax/VAT • Exemption / Refund of Service Tax • Exemption of Purchase Tax On Other Transactions •50 % exemption of Stamp duty & Registration Fees •50% exemption of Stamp duty on Mortgages •Exemption of Electricity Duty and Taxes •Domestic Sales –Subject to NFE Conditions •Exemption of Income Tax (100% for 5 yrs. + 50% for next 5 yrs + 50% ploughed back export profit from next 5 years ) Suitable Sectors

1 PETROLEUM & PETROCHEMICAL PRODUCTS 6 1 • Strong affinity to the industry • Good backward & forward linkages Manufacturing Petroleum & &Others Petrochemical 2 PLASTICS Products • Feedstock availability from units within SEZ

3 5 2 IT & ITES / FINANCIAL CENTER • Strong presence of IT/ ITES companies Textile Plastics • Very close to urban settlement

4 4 3 PHARMA • Good Port connectivity for easy logistics • Chemical companies in the proximity Pharma IT & ITES 5 TEXTILE • Good backward linkages

6 MANUFACTURING & OTHERS Logistics / warehousing Gems & Jewellery Feedstock Advantage

Within MSEZ Within 5 Kms Radius Imports from GULF

Duty Free Imports |Para xylene |Benzene |Toluene |Light Naphtha |Pet Coke

|Mixed Xylene |Heavy Aromatics |FCC Off gases |FCC LPG |PP • Lowest Logistic Cost Port from |Paraffin Rich Raffinates |Hydrogen |Bitumen |Sulphur Pellets |Kerosene GULF |PTA |PET for n-paraffins | Petcoke • Pipeline /Road Corridor from Port |Propane |Butane |Sulfuric Acid • Proposed Free Trade Warehousing Zone / Tank Farm within MSEZ Environment Friendly

33 % of the project maintained as a Green Area

Rare and endangered species from Western Ghats are grown to reduce air & noise pollution and improve ambience

MOA with Mangalore City Corporation to maintain STP’s and re-use secondary treated water

Effective disposal of treated effluent in place India : Overview

Introduction to MSEZ

Location & Connectivity

Quick Start Advantage

Robust Infrastructure

Master Plan

Attractive Incentives

Latest Developments Water Treatment Plant Unit operational at MSEZ In-house hi-tech substation 220 KV sub-station adjoining MSEZ A unit under construction Aerial view of development activities by clients Our Esteemed Clients

A large Aromatic complex. Indian Strategic Large PET & PTA capacity. US based company Anchor tenant Petrochemical Reserve Unit is under construction Unit is operational Unit is operational Unit is operational

Subsidiary of Biocon Ltd And Counting… Unit is under construction Why MSEZ

• Clear title land – acquired through Govt. of Karnataka • Flexible & graded plot options • Attractive incentives through SEZ Act, India • Plug & Play Infrastructure • Quick Start Advantage • Environment Clearance in place • Well connected for easy logistics • Established credentials of promoters in developing industry and infrastructure • Transparent & customer centric management • Maintenance of the park for un-interrupted business operations For Enquiries

Mr. E. Rohit Deputy General Manager – Marketing +91 7795534555 [email protected]

Mr. V.Surya Narayana Vice President +91 9972041110 Mangalore SEZ Limited 3rd Floor, MUDA Building, Urwa Store Mangalore – 575006 Phone : +91 824 2452748

Disclaimer : Content of this publication intends to provide generic project information. Pictorial depictions are combination of actual images and impressions. Maps are not to scale. Project contents and plans undergo changes, marginally or substantially without prior notice and without any responsibility attributable to Mangalore SEZ Ltd.