Study on Investment Potential of Kerala- Final Report
Total Page:16
File Type:pdf, Size:1020Kb
Study on Investment Potential in Kerala Study on Investment Potential of Kerala- Final Report Kerala State Industrial Development Corporation Ltd 30 October, 2017 KPMG.com/in © 2017 KPMG Advisory Services Private Limited , an Indian Private Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), A Swiss entity. All rights reserved Page 1 of 269 Study on Investment Potential in Kerala Disclaimer and Notice to Reader The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. We have prepared this report solely for the purpose of providing select information on a confidential basis to the management of Kerala State Industrial Development Corporation Ltd (KSIDC). In accordance with the contract dated 25th June 2016 executed between KSIDC and KPMG Advisory Service Private Limited (KASPL). This report is confidential and for the use of management only. The distribution of this report should be limited to concerned and appropriate officials of KSIDC and need basis only. This report sets forth our views based on the completeness and accuracy of the facts stated to KASPL and any assumptions that were included. If any of the facts and assumptions is not complete or accurate, it is imperative that we be informed accordingly, as the inaccuracy or incompleteness thereof could have a material effect on our conclusions. We have not performed an audit and do not express an opinion or any other form of assurance. Further, comments in our report are not intended, nor should they be interpreted to be legal advice or opinion. While performing the work, we assumed the genuineness of all signatures and the authenticity of all original documents. We have not independently verified the correctness or authenticity of the same. While information obtained from the public domain or external sources has not been verified for authenticity, accuracy or completeness, we have obtained information, as far as possible, from sources generally considered to be reliable. We assume no responsibility for such information. Our views are not binding on any person, entity, authority or Court, and hence, no assurance is given that a position contrary to the opinions expressed herein will not be asserted by any person, entity, authority and/or sustained by an appellate authority or a court of law. In accordance with its policy, KPMG advises that neither it nor any partner, director or employee undertakes any responsibility arising in any way whatsoever, to any person other than KSIDC in respect of the matters dealt with in this report, including any errors or omissions therein, arising through negligence or otherwise, howsoever caused. In connection with our report or any part thereof, KPMG does not owe duty of care (whether in contract or in tort or under statute or otherwise) to any person or party to whom the report is circulated to and KPMG shall not be liable to any party who uses or relies on this report. KPMG thus disclaims all responsibility or liability for any costs, damages, losses, liabilities, expenses incurred by such third party arising out of or in connection with the report or any part thereof. By reading our report the reader of the report shall be deemed to have accepted the terms mentioned hereinabove. © 2017 KPMG Advisory Services Private Limited , an Indian Private Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), A Swiss entity. All rights reserved Page 2 of 269 Study on Investment Potential in Kerala Document Controller Revision History Version Author Date Revision Interim Report Abhishek Agarwal, 22-Aug-16 Initial version (Version 1.0) Hariharasubramanian Interim Report Hariharasubramanian, 25-Sep-16 Incorporated comments (Version 2.0) Rekha Joy from KSIDC Draft Report Hariharasubramanian, 3-Oct-16 Sectoral Analysis (Version 1.0) Rekha Joy, Kiran Mathi, incorporated Varun Reddy Draft Report Hariharasubramanian, 6-Nov-16 Incorporated comments (Version 2.0) Rekha Joy, Kiran Mathi, from KSIDC, More sectors Varun Reddy, Siddhartha included for study Jayandayala Final Report Hariharasubramanian, 2-Dec-16 Project Profiles and (Version 1.0) Rekha Joy recommendations prepared Final Report Hariharasubramanian, 12-Jan-17 Incorporated comments (Version 2.0) Rekha Joy from KSIDC Final Report Navneet Vallat, Rekha 12-Feb-17 Incorporated comments (Version 3.0) Joy, from ACS Hariharasubramanian Final Report Navneet Vallat, Rekha Joy 30-Oct-17 Final report comprising of (Version 4.0) all review comments and project profiles Review History Version Reviewer Date Comments Interim Report Prasad Unnikrishnan 24-Aug-16 Contents, Quality review (Version 1.0) Interim Report Prasad Unnikrishnan 29-Sep-16 Format review (Version 2.0) Draft Report Prasad Unnikrishnan 6-Oct-16 Quality Assurance (Version 1.0) Draft Report Prasad Unnikrishnan 8-Nov-16 Contents, Format, (Version 2.0) quality review Final Report Prasad Unnikrishnan 4-Dec-16 Overall Review (Version 1.0) Final Report Prasad Unnikrishnan 14-Jan-17 Final review (Version 2.0) © 2017 KPMG Advisory Services Private Limited , an Indian Private Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), A Swiss entity. All rights reserved Page 3 of 269 Study on Investment Potential in Kerala Version Reviewer Date Comments Final Report Prasad Unnikrishnan 13-Feb-17 Final review (Version 3.0) Final Report Prasad Unnikrishnan 25-Oct-17 Final review (Version 4.0) Release Note Version Released To Release mode Release Date Interim Report MD KSIDC Email 29-Aug-16 (Version 1.0) Interim Report MD KSIDC Email/Print 29-Sep-16 (Version 2.0) Draft Report MD KSIDC Email 6-Oct-16 (Version 1.0) Draft Report MD KSIDC Email 10-Nov-16 (Version 2.0) Final Report MD KSIDC Email/Print 6-Dec-16 (Version 1.0) Final Report MD KSIDC Email/Print 16-Jan-17 (Version 2.0) Final Report MD KSIDC Email/Print 14-Feb-17 (Version 3.0) Draft project G Unnikrishnan Email 2-Aug-17 profiles (28 small/medium/large project profiles) Draft Project G Unnikrishnan Email 9-Sep-17 Profiles (24 Mega project profiles post review and approval of designated entities/officers) Final Project MD KSIDC Email 20-Oct-17 Profiles (Updated G Unnikrishnan with review comments and suggestions provided on review meeting held on Oct 16 2017) © 2017 KPMG Advisory Services Private Limited , an Indian Private Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), A Swiss entity. All rights reserved Page 4 of 269 Study on Investment Potential in Kerala Contents Executive Summary 9 Introduction 11 Objective and methodology of study 12 Understanding of Kerala’s Strategic Advantages 13 Comparative analysis with other states 14 Kerala – State SWOT analysis 16 Demographic and Infrastructure Assessment 20 District Profiling 23 Central and state level sector support incentives and initiatives 31 Central government support initiatives 31 Support initiatives offered by states 32 Existing policy framework of Kerala 36 Key takeaways for the state 37 Brand landscape of Kerala 38 Sector Assessment 38 Sector assessment framework 39 Sector listing 39 Sector Assessment – Key Findings 42 Detailed Sector Assessment 62 Agriculture and Allied Activities 62 Minerals and Mining 74 Manufacturing 75 Electricity, Gas, Water Supply & other Utility services 108 Construction 111 Trade, hotels and restaurants 113 Transport, Storage and Communication 116 Financial Services 123 Other Services 124 Kerala’s potential sectors 135 Ranking Methodology 135 Potential sectors – Top 20 sectors 136 Potential Sectors – MVA Ranking 137 Potential Sectors – TIVA Ranking 138 Roadmap – Way forward to achieve Kerala’s sector development aspirations 139 Thrust sectors of Kerala 140 Make in Kerala Sectors 140 © 2017 KPMG Advisory Services Private Limited , an Indian Private Company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), A Swiss entity. All rights reserved Page 5 of 269 Study on Investment Potential in Kerala Kerala’s 5-point Sector Development Strategy 141 MSME Cluster Development 143 Project Profiles 146 Mega projects 146 Electronic Park 147 Multi-modal Logistics Park 151 Free Trade Warehousing Zone (FTWZ) 155 Light Metro - Kozhikode 162 Medium Density Fibreboard (MDF) Plant 166 Abattoir and Modern Meat processing unit 169 International Exhibition cum Conference Center 174 PVC Manufacturing 183 Super Absorbent Polymer 185 Elevated Highway 188 Inland Waterways and Cruise Development 190 Aerotropolis 193 Aquaculture and Seafood Exports 195 Integrated Manufacturing Cluster (IMC) 198 Petrochemical Park 202 Kerala Maritime Cluster 204 Small Hydro Power 208 Holistic Medical Village 213 Large projects 216 Cultural Zone and Theme Park 217 Domestic LED lights manufacturing 219 Medicinal Plant Preservation & Processing Unit 222 Natural Colours, Herbal Extracts and Oleoresins 225 Sports Complex 228 Experience Sharing Theme Parks 233 Micro, Small and Medium projects 237 Fruit Processing & Canning 237 Inflight Catering Unit 240 Integrated Coir Processing Unit 242 Home Based