MADHYA PRADESH November 2010
1 MADHYA PRADESH November 2010
Investment climate of a state is determined by a mix of factors
• Skilled and cost-effective labour • Procedures for entry and exit of firms • Labour market flexibility • Industrial regulation, labour regulation, other • Labour relations government regulations • Availability of raw materials and natural • Certainty about rules and regulations resources • Security, law and order situation
Regulatory framework Resources/Inputs Investment climate of a state Physical and social Incentives to industry infrastructure • Condition of physical infrastructure such as • Tax incentives and exemptions power, water, roads, etc. • Investment subsidies and other incentives • Information infrastructure such as telecom, IT, • Availability of finance at cost-effective terms etc. • Incentives for foreign direct investment (FDI) • Social infrastructure such as educational and • Profitability of the industry medical facilities
2 MADHYA PRADESH November 2010
Contents
Advantage Madhya Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Madhya Pradesh
3 ADVANTAGE MADHYA PRADESH Madhya Pradesh November 2010
Madhya Pradesh – State profile … (1/2)
• Madhya Pradesh is located in central India. The state covers area of 308,000 sq km and has population of around 60.3 million.
• Until November 2000, Madhya Pradesh was the largest state in India, when the state of Chhattisgarh was carved out of it for ease of administering a large state.
• The state, now, has 50 districts. Its administrative capital is Bhopal and its largest city is Indore. Other key cities are Gwalior, Jabalpur and Ujjain.
• Madhya Pradesh has two major rivers flowing through it: the Narmada and the Tapi.
Source: Maps of India
4 ADVANTAGE MADHYA PRADESH Madhya Pradesh November 2010
Madhya Pradesh – State profile … (2/2)
• There are 11 agro-climatic conditions and a variety of soils available in the state to support cultivation of a wide range of crops.
• Around 31 per cent of the total area of the state is forest land which is over 12 per cent of the total forest area of India.
• The most commonly spoken language of the state is Hindi. English and Marathi are the other languages used.
Source: Maps of India
5 ADVANTAGE MADHYA PRADESH Madhya Pradesh November 2010
Advantage Madhya Pradesh … (1/2)
Central location of the state Being centrally located, companies in the state have access to key consumer markets and major cities such as Delhi (740 km*), Mumbai (780 km*), Kolkata (1,350 km*) and Chennai (1,430 km*). Because of this advantage, a large number of consumer goods companies have manufacturing bases in the state.
Policy incentive The state offers wide range of fiscal and policy incentives for businesses under the Industrial Promotion Policy - 2004 & Action Plan (including the provisions as amended in 2007). Additionally, the state has policies for the IT, biotechnology, food processing, tourism sectors and special economic zones (SEZ).
Agricultural and forest resources
Around 31 per cent of the state is under forest cover with Source: Maps of India abundant natural resources. Favourable soil and climatic conditions have helped the state to be leading producer of coarse cereals, oilseeds and soybean in the country. The state has attracted a large number of agro-based industries because of its agricultural products.
* From Bhopal 6 ADVANTAGE MADHYA PRADESH Madhya Pradesh November 2010
Advantage Madhya Pradesh … (2/2)
Mineral resources Madhya Pradesh has rich mineral resources and has the largest reserves of diamond and copper in India. Besides, the state has significant reserves of coal, coal-bed methane, manganese and dolomite.
Large industrial base The state is manufacturing base for a number of large and medium scale industries from diverse sectors such as automobile and auto- components, cement, agro-processing, consumer goods, pharmaceuticals, etc. It also has a large pool of industrial labour.
Potential for tourism Because of its forest cover, the state has immense potential for tourism, particularly, wild-life and adventure tourism and eco-tourism. It also has Source: Maps of India globally renowned locations of historical and religious significance. The state attracts large number of domestic and international tourists.
7 ADVANTAGE MADHYA PRADESH Madhya Pradesh November 2010
Madhya Pradesh in figures … (1/2)
Parameter Madhya Pradesh All-states Source Economy GSDP as percentage of all states‟ GSDP 3.6 100.0 CMIE, as of 2007-08, current prices CMIE, 2000-01 to 2007-08, current Average GSDP growth rate (%)* 8.8 11.8 prices Per capita GSDP (US$) 519.3 992.5 CMIE, as of 2007-08, current prices Physical infrastructure Central Electricity Authority, Installed power capacity (MW) 8,324.0 159,398.5 as of March 2010 Cellular Operators Association of India, GSM cellular subscribers (No) 25,010,843 456,586,162 as of June 2010 Broadband subscribers (No) 168,951^ 4,981,976 As of October 2008 Ministry of Road Transport & Highways, National highway length (km) 4,670 70,548 Annual Report 2008-09 Airports (No) 5 133 Industry sources Social indicators Literacy rate (%) 63.7 64.8 Census of India, 2001 Ministry of Health & Family Welfare, Birth rate (per 1,000 live birth) 28.0 22.8 RHS Bulletin, March 2008 * In Indian rupee terms ^Includes Chhattisgarh
8 ADVANTAGE MADHYA PRADESH Madhya Pradesh November 2010
Madhya Pradesh in figures … (2/2)
Parameter Madhya Pradesh All-states Source Ease of doing business Department of Industrial Policy & Promotion, FDI inflows (US$ billion) 0.2* 120.2 April 2000 to May 2010 Outstanding investments 78.4 1,972.6 CMIE, as of March 2010 (US$ billion) Industrial infrastructure PPP projects (no) 39 515 www.pppindiadatabase.com Functional as of August 2010, SEZs (No) 1 114 www.sezindia.nic.in
*Includes Chhattisgarh PPP: public private partnership, SEZ: special economic zone
Parameter Madhya Pradesh Government Policy support Sectors with specific policies IT, biotechnology, SEZ, tourism, food processing Availability of labour Large base of industrial labour available.
9 ADVANTAGE MADHYA PRADESH Madhya Pradesh November 2010
Key industries with policy thrust and factor advantages
Industry attractiveness matrix
High Pharmaceutical and IT and ITeS Tourism biotechnology Textile Agro- and Auto and auto forest-based components industry
Food processing Minerals Manufacturing
Medium Consumer
goods Policy thrust Policy
Low Medium High *Factor advantage
*Factor advantages include benefits due to geographical location and availability of factors like talent pool, natural resources and capital
10 MADHYA PRADESH November 2010
Contents
Advantage Madhya Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Madhya Pradesh
11 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Madhya Pradesh November 2010
Socio-economic snapshot of Madhya Pradesh
Parameters Madhya Pradesh Capital Bhopal Geographical area (sq km) 308,000 Administrative districts (No) 50 Population density (persons per sq km) 196 Total population (million) 60.3 Male population (million) 31.4 Female population (million) 28.9 Decadal population growth rate (%) 24.3 Sex ratio (females per 1,000 males) 919 Literacy rate (%) 63.7 Male (%) 76.1 Female (%) 50.3 Average life expectancy (years) 57.7
Sources: Website of Government of Madhya Pradesh (www.mp.gov.in), CMIE, Census 2001
12 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Madhya Pradesh November 2010
Madhya Pradesh‟s GSDP
• At current prices, the Gross State Domestic Product (GSDP) of Madhya Pradesh for 2007-08 was US$ 35.4 billion.
• Between1999-2000 and 2007-08, the average annual GSDP growth rate was 9.5 per cent.
• The growth in GSDP has primarily come about as a result of the growth in mining and quarrying, construction and services sectors.
Madhya Pradesh‟s GSDP (US$ billion) 40.0 35.4 CAGR 31.1 9.5% 30.0 26.0 23.5 23.6
18.1 19.0 20.0 17.2 16.4
10.0
0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Source: CMIE
13 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Madhya Pradesh November 2010
Madhya Pradesh‟s NSDP
• The Net State Domestic Product (NSDP) of Madhya Pradesh was about US$ 30.7 billion in 2007-08.
• The average NSDP growth rate between 1999-2000 and 2007-08, was about 8.8 per cent.
Madhya Pradesh‟s NSDP (US$ billion) 40.0
CAGR 30.7 30.0 8.8% 27.0 22.7 20.8 20.7 20.0 16.2 16.8 15.6 14.7
10.0
0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Source: CMIE
14 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Madhya Pradesh November 2010
The tertiary sector has an increasing share in Madhya Pradesh‟s economy
• In 2007-08, at US$ 16.6 billion, the tertiary Percentage distribution of GSDP sector contributed 46.8 per cent to the GSDP 100.0% CAGR at current prices. It was followed by the primary sector, contributing US$ 10.9 billion (30.7 per 80.0% 46.0 46.8 9.7% cent), and the secondary sector, contributing 60.0% US$ 8 billion (22.6 per cent). 40.0% 20.6 22.6 10.7%
• The secondary sector has also been the fastest 20.0% 33.3 30.7 growing at 10.7 per cent from 1999-2000 to 8.3% 2007-08, followed by the tertiary and primary 0.0% sectors. 1999-00 2007-08 Primary sector Secondary sector Tertiary sector
Source: CMIE
15 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Madhya Pradesh November 2010
Per capita GSDP
• The per capita GSDP of Madhya Pradesh increased almost 1.8 times from US$ 293.1 in 1999-2000 to US$ 519.3 in 2007-08.
• In 2007-08, the per capita GSDP grew at about 12 per cent over the previous year.
• Robust tertiary sector has helped Madhya Pradesh increase its average per capita GSDP by around 7.4 per cent between 1999-2000 and 2007-08.
Per capita GSDP
600.0 CAGR 519.3 12.0% 500.0 463.4 394.2 400.0 370.5 365.1 293.1 296.0 305.6
300.0 273.9 US$
200.0
100.0
0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Source: CMIE
16 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Madhya Pradesh November 2010
Key industries in Madhya Pradesh
• The natural resources including agro-based products, forest products and minerals, the state‟s Key industries in Madhya Pradesh policy incentives and its central location have • Auto and auto components attracted major investments in the agro-products, consumer goods, drugs and pharmaceuticals, • Textile mines and minerals, manufacturing and textiles • Cement sectors. • Agro-based industries
• Forest-based industries • The State Government is keen to develop industrial infrastructure. The Madhya Pradesh • Pharmaceuticals State Industrial Development Corporation • Mineral-based industries Limited (MPSIDC) and its subsidiary, Madhya • Manufacturing Pradesh Audyogik Kendra Vikas Nigam Limited • Tourism (MPAKVN) are the key nodal agencies for industrial development in the state.
• Major industrial areas in the state are Bhopal, Sehore, Raisen, Harda, Mandideep, Dewas, Pithampur, Khandwa, Jhabua, Dhar, Ujjain and Mandsaur.
17 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Madhya Pradesh November 2010
Madhya Pradesh is among the largest producers of pulses, oilseeds and soybean in the country
• Wheat, soybean, sugarcane, rice, cotton, rapeseed, Annual production* mustard and arhar are the major crops of the Crop state. („000 tonnes) Wheat 5,896.0 • In 2007-08, total production of the major crops of Soybean 5,001.0 the state was around 17.0 million tonnes. Sugarcane 3,180.0 Rice 1,409.0 • Wheat, soybean and sugarcane, together, Cotton 658.0 accounted for 83 per cent of the total production Rapeseed and mustard 510.0 of the major crops. Arhar 292.0
• In 2006-07, Madhya Pradesh was the largest *As of 2007-08 producer of pulses, oilseeds and soybean in the Source: CMIE country.
18 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Madhya Pradesh November 2010
Investments and FDI inflows
• According to the Reserve Bank of India, FDI Break up of investments by sector inflows from April 2000 to May 2010 amounted to US$ 206 million*. 2.4%
8.8% • As of March 2010, total outstanding 18.6% Manufacturing investments were US$ 78.4 billion. Electricity 8.8% Mining 3.0% accounted for around 58.4 per cent of the Electricity outstanding investments, followed by Services manufacturing, accounting for around 18.6 per cent. Irrigation Construction *Including Chhattisgarh 58.4%
Electricity includes generation and distribution Services excludes financial services Source: CMIE As of March 2010
19 MADHYA PRADESH November 2010
Contents
Advantage Madhya Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Madhya Pradesh
20 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Road network
• Madhya Pradesh has 16 National Highways in the state, measuring 4,670 km. Madhya Pradesh also has 8,728 km of State Highways.
• The total road length in the state is around 72,000 km, of which around 60,000 km are surfaced.
• Construction of major roads in the state is supervised by Madhya Pradesh Road Development Corporation Limited (MPRDC), which implements projects taken up under public private partnership and those funded by Asian Development Bank (ADB).
Source: Maps of India • The state has 31 public private partnership (PPP) projects in the roads sector, at various stages of development. Further, 18 projects funded by ADB are under progress.
• The state is well connected to the major cities of the country, consumer markets, and ports on the West-coast such as Kandla and Jawaharlal Nehru Port Trust.
21 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Railway network
• Madhya Pradesh has around 5,900 km of railway lines passing through it.
• The railway network in Madhya Pradesh primarily falls under the West-Central Railways, which was formed in 2003 and is headquartered in Jabalpur. Chhattisgarh is the other state under the West-Central Railways. Part of the state is also covered by Central and Western Railways.
• Because of the central location of the state, the railway network in Madhya Pradesh plays an important role. Bhopal, the state‟s capital, is one of the major railway junctions in India. Source: Maps of India
• The railway network supports the mineral- and agro-based industries in the state by carrying bauxite, limestone, dolomite and clinker, fertiliser and de-oiled cake.
22 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Airports
• Madhya Pradesh has five operational airports, one each at: Bhopal, Jabalpur, Gwalior, Indore and
Khajuraho. GWALIOR
• Indore is the busiest airport in the state. KHAJURAHO
INDORE BHOPAL
JABALPUR
Domestic airport
Source: Maps of India
23 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Telecom
• As of December 2009, Madhya Pradesh had Major telecom companies in Madhya Pradesh 2,560 telephone exchanges and 28.6 million telephone connections (wire-line and Bharat Sanchar Idea Cellular cellular). Nigam Limited (BSNL) Reliance Communications Bharti Airtel Tata Teleservices • There were 27.3 million cellular subscribers and 1.3 million wire-line subscribers in the Vodafone Essar state. Sources: Cellular Operators Association of India, company websites
• As of December 2009, tele-density (telephone connections per 100 persons) in Telecom infrastructure in Madhya Pradesh Madhya Pradesh was 40.4, compared to 30.1 Parameter December March in March 2009. 2009 2009
• The total number of broadband users, as of No of telephone exchanges 2,560 2,558 October 2008, was 168,951 (including Chhattisgarh). No of telephone connections (million) 28.6 21.1
No of wire-line telephone (million) 1.3 1.4
Tele-density (per 100 persons) 40.4 30.1
Source: Department of Telecommunication, Government of India
24 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Power
• As of March 2010, Madhya Pradesh had total Installed power capacity (MW) installed power generation capacity of 8,324 MW, which comprised 4,582.9 MW under state 10,000.0 8,324.0 7,751.9 8,113.3 utilities, 3,525 MW under central utilities and 8,000.0 216.1 MW under the private sector. 6,648.3 5,770.0 6,000.0 • Coal-based thermal power and hydro power contribute around 51.4 per cent and 38.7 per 4,000.0 cent to the total installed capacity, respectively. Balance generation capacity is based on nuclear 2,000.0 and renewable energy sources. 0.0 2005-06 2006-07 2007-08 2008-09 2009-10 • NTPC, the central-sector operator in the state, had plants of another 3,260 MW of thermal Source: Central Electricity Authority power generation in the state.
• An ultra-mega power plant (UMPP) is being constructed in Sasan, with an installed capacity of 3,950 MW.
25 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Urban infrastructure … (1/2)
• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 22 projects (of value US$ 479 million) have been sanctioned for urban centres such as Bhopal, Indore, Jabalpur and Ujjain.
• Some of the key projects are in sectors such as roads and flyovers, water supply, storm-water drainage, sewerage, solid-waste management and mass rapid transport systems.
• Projects of value US$ 3.0 million have been completed in Bhopal and Indore. Those were related to urban renewal and roads and flyovers. In 2008-09, funds worth US$ 26 million have been released for 10 projects.
• The Asian Development Bank (ADB) has funded 16 projects worth US$ 33.8 million for Bhopal in the areas of water supply, sewerage and sanitation, storm-water drainage and solid-waste management. Out of the 16 projects, two have been completed and others are at various stages of development.
Sources: Bhopal Municipal Corporation website, www.bhopalmunicipal.com, JNNURM Ministry of Urban Development, Government of India
26 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Urban infrastructure … (2/2)
Focus areas of urban development in Madhya Pradesh
Water supply Sewerage system Solid-waste management Others
• The average per capita supply • In cities such as Indore, • Indore and Ujjain • Two projects of water in major cities such around 50 per cent of the generate around 500 worth US$ 77.6 as Indore is around 80 litres population is connected to tonnes per day (tpd) million have been per day. sewage network. and 160 tpd of solid- sanctioned for waste respectively. improvement of • Under the JNNRUM, cities are • Under the JNNRUM, the drainage system. planned to achieve per capita entire population in the • Under the JNNRUM, water supply of 135 litres per cities will be connected to the entire solid-waste is • Six projects worth day between 2015 and 2021. sewage network. expected to be US$ 69.2 million collected and treated. have been • Six projects worth US$ 183 • Three projects worth US$ sanctioned for million have been sanctioned 100 million have been • A project worth US$ for water supply under the sanctioned for sewage 9.4 million has been improvement of JNNURM. treatment under the sanctioned. transport system. JNNURM.
Source: JNNURM, Ministry of Urban Development, Government of India
27 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Key public private partnership projects
Project cost Project name Sector PPP type Status (US$ million) Development of central business district in South Urban development BOT-toll 326.1 Under bidding TT Nagar, Bhopal Sports city, international convention centre, star Urban development BOT-toll 195.7 Construction hotel, shopping complex and residential complex Gwalior-Jhansi National Highway road project Roads BOT-annuity 131.1 Construction Khalaghat-Maharashtra border Roads BOT-toll 119.3 Construction Indore to Khalaghat Roads BOT-toll 102.6 Construction Four-laning of Bhopal-Devas State Highway Roads BOT-toll 92.8 Construction Four-laning of Lebad-Jaora State Highway Roads BOT-toll 91.5 Construction 50 km road between Jhansi-Lalitpur on NH-25 and Roads BOT-annuity 91.5 Construction NH-26 Lakhnadon to Maharashtra border Roads BOT-annuity 88.7 Construction Four-laning of Joura-Nayagaon State Highway Roads BOT-toll 87.8 Construction Water supply augmentation at Khandwa Urban development BOT-annuity 22.6 Construction
BOT: Build-operate-transfer Source: www.pppindiadatabase.com
28 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Education sector
• The state had a literacy rate of 63.7 per cent in Educational institution Number 2001, compared to 44.2 per cent in 1991. Primary schools 94,890
• In 2001, literacy rate among male was 76.1 per Higher secondary schools 8,504 cent and literacy rate among female was 50.3 per Degree colleges 303 cent. Universities 12 Polytechnic institutes 158 • The state has 159 engineering colleges, 139 management institutes and five medical colleges. Industrial training institutes 343 Engineering colleges 159 Management institutes 139
Reputed institutes of Madhya Pradesh Medical colleges* 5
• Indian Institute of Management (IIM), Indore *Recognised by Medical Council of India Sources: Madhya Pradesh at a Glance, 2008, Economic Survey • Indian Institute of Forest Management, Bhopal 2008-09, Website of Government of Madhya Pradesh • Indian Institute of Hotel Management, Bhopal (www.mp.gov.in)
• International Institute of Professional Studies, Indore
29 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Health infrastructure
• As of March 2009, the healthcare services network Health institutions (2009) of Madhya Pradesh comprises 50 district hospitals (13,400 beds), 333 community health centres, 1,155 District hospitals 50 primary health centres and 8,659 sub-centres. Primary health centres 1,155 Sub-centres 8,659 • It also has 34 ayurvedic, 22 homoeopathic and two Community health centres 333 unani hospitals. Ayurvedic hospitals 34^ • As of 2007-08, the total number of in-patient beds Unani hospitals 2^ in Madhya Pradesh (excluding medical colleges) Homeopathic hospitals 22^ were 26,971. ^As of March 2008 Sources: Directorate of Health Services, Government of Madhya Pradesh, Ministry of Health & Family Welfare, Government of India
30 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Cultural infrastructure
• Madhya Pradesh‟s history dates back to the pre- historic age. The United Nations Educational, Type of museum (No) Scientific and Cultural Organisation (UNESCO) has State-level museums 6 declared three locations in the state as heritage sites: District-level museums 11 Devi Jagadambika temples at Khajuraho, Buddhist monuments at Sanchi and rock shelters of Local museums 6 Bhimbetka. Site museums 5 District Archaeological Association 16 • The Directorate of Archaeology, Archives and museums Museums, is responsible for the upkeep of 349 monuments and 44 museums across the state. Source: Directorate of Archaeology, Archives and Museums, Government of Madhya Pradesh
• The State Government has established sports academies to promote sports such as hockey, shooting, equestrian, water sports and martial arts. State-level museums in Madhya Pradesh
• State Museum, Bhopal • Eminent sports personalities are awarded with the Vikram awards, the Ekalavya awards and the • Central Museum, Indore Vishwamitra (lifetime achievement) award. • Rani Durgawati Museum, Jabalpur
• Tulsi Museum, Ramvan, Satna • Among the cultural festivals of Madhya Pradesh, the Khajuraho festival of dance and the Tansen music • Maharaja Chhatrasal Museum, Chhatarpur festival in Gwalior celebrate classical Indian dance • Gujrimahal Museum, Gwalior and music. These festivals are well attended by both, domestic and international tourists.
31 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Industrial infrastructure … (1/3)
• Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) is the nodal agency for industrial growth in the state.
• For balanced and sustainable growth of industry across the state, MPSIDC has set up Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (AKVN) at Bhopal, Gwalior, Jabalpur, Indore, Rewa and Ujjain.
Infrastructure Bhopal AKVN Gwalior AKVN Jabalpur AKVN Area developed 1,350.7 2,473.8 1,250.0 (hectare) Malanpur, Ghirongi, Banmore, Growth centres Mandideep, Pillukhedi, Babai, Piparia Chainpura, Siddhgawan, Borgaon, Maneri Pratappura, Naugaw Large and medium industries (LMI): 40 LMI: 44 LMI: 10 Units established Small scale industries (SSI): 328 SSI: 223 SSI: 44 HEG, Crompton Greaves, Procter & Surya Roshini, Godrej, Grasim, Raymond, Hindustan Major companies Gamble, Godrej, Lupin. Cadbury, Crompton Greaves Petroleum, Ayur Special Inland Container Depot (ICD), food ICD, food park, stone park Stone park, food park infrastructure park Engineering cluster, logistic hub, food Proposed project Habitat centre, SEZ SEZ (agro-based) park
SEZ: special economic zone Source: MPSIDC
32 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Industrial infrastructure … (2/3)
Infrastructure Indore AKVN Rewa AKVN Ujjain AKVN Area developed (hectare) 3,254.8 307.4 431.6 Rewa, Waidhan, Purena, Growth centres Pithampur, Kheda, Megh Nagar Ujjain, Dewas, Maksi, Jaggakhedi Maiher Units established LMI:153, SSI: 832 LMI: 14, SSI: 139 LMI: 52, SSI: 23 Eicher, Bridgestone, Hindustan Major companies Birla, Jaypee Ranbaxy, S.Kumars, Gajra, Kirloskar Motors, Force, Mahindra SEZ, food park, apparel park, Special infrastructure - Food park, ICD ICD Knowledge city, new industrial area Proposed project Auto testing track, food park Industrial area under the Delhi Mumbai Industrial Corridor project
SEZ: special economic zone Source: MPSIDC
33 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Industrial infrastructure … (3/3)
Industrial clusters in Madhya Pradesh
Gwalior
Bhopal Rewa
Ujjain
Jabalpur
Indore
Sources: Maps of India, Madhya Pradesh State Industrial Development Corporation
34 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
SEZs and industrial clusters … (1/2)
• As of August 2010, formal approval has been given to 14 SEZs proposed to be set up in Madhya Pradesh. Key companies in Indore SEZ
• SRF • Bhopal, Indore, Gwalior and Jabalpur are the major • Flexituff locations where SEZs have been approved. These SEZs have been proposed for mineral-based, agro- • India Nets based and multi-product industries. • New Tech Abrasives
• Advance Enzyme Technology • There is one operational multi-product SEZ in • Ipca Laboratories Indore. • Amulya Exports
• Emerald Tobacco Indore SEZ • Pratibha Syntex • Area: 2,500 acre (1,114 hectares) Source: Madhya Pradesh State Industrial • Number of allotment: 42 Development Corporation • Number of units operating: 20
• Total investment: US$ 216.7
• Investment under implementation: US$ 106.7 (13 units)
• Export (2008-09): US$ 210.9 million
Source: Madhya Pradesh State Industrial Development Corporation
35 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
SEZs and industrial clusters … (2/2)
SEZs in Madhya Pradesh Gwalior Industry Location No of IT/ITeS (1) SEZs Bhopal Multi-services (1) IT/ITeS (1) Formally approved SEZ Bhopal Gwalior Multi-product (1) IT/ITeS Indore, Gwalior, 11 IT/ITeS (1) Chindwara, Jabalpur, Bhopal
Sehore Multi-services Gwalior 1 Multi-product (1) Mineral-based Jabalpur 1 Singroli Aluminium (1) Agro-based Jabalpur 1
Jabalpur In-principle approved SEZ Indore IT/ITeS (1) IT/ITeS (7) Multi-product Gwalior, Indore, 4 Mineral-based (1) Chindwara, Indore Agro-based (1) Operational SEZ Sehore Multi-product (1) Agro-products (1) Formally approved SEZ IT/ITeS Bhopal 1 Chhindwara In-principle approved SEZ IT/ITeS (1) Agri-products Indore 1 Chindwara Aluminium Singroli 1 Number of SEZ in parenthesis Multi-product (1) Sources: Maps of India, www.sezindia.nic.in Agro-products (1) SEZ: special economic zone Source: www.sezindia.nic.in
36 INFRASTRUCTURE STATUS Madhya Pradesh November 2010
Infrastructure investments
• As of March 2010, infrastructure investments of Infrastructure type Investments (US$ million) over US$ 16.6 billion had been made in Madhya Power* 14,237.7 Pradesh. Roads 1,300.3 • Around 85.6 per cent of investments in Coal 800.2 infrastructure were in the area of power Oil and gas 5.9 generation and distribution. Railway 211.5
• Other major investments were in the road Airport 73.2 transport (7.8 per cent of total investments) and Total 16,628.8 the coal sectors (4.8 per cent of total investments). *Generation and distribution Source: CMIE
37 MADHYA PRADESH November 2010
Contents
Advantage Madhya Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Madhya Pradesh
38 STATE POLICIES AND INCENTIVES Madhya Pradesh November 2010
Sector specific policies … (1/9)
Madhya Pradesh Food Processing Policy, 2008 Aim: The policy aims to create, facilitate and strengthen the enabling environment for developing an integrated and cohesive value chain in the food processing sector encompassing end to end solution. Key incentives and initiatives:
• Expenditure incurred in obtaining necessary national and international quality certifications such as FPO, Agmark, BIS, Euro Standard will be reimbursed, up to a maximum of US$ 2,109.
• In order to encourage research and development in food processing industries, 10 per cent of actual expenditure incurred will be reimbursed up to a maximum of US$ 2,109.
• Small scale industries will be provided subsidy (US$ 1,582 in first year, US$ 1,055 in second year, US$ 527 in third year) for putting up stalls and promotional measures at national- and state-level exhibitions and seminars.
• No mandi fee will be charged on agriculture produce purchased from outside the state for use as raw material.
• Incentives will be provided to units being set up in food parks and for industries based on perishable foods.
• Mega projects and projects with special importance which induct modern technology and have fixed capital investment of more than US$ 1.05 million will be considered for further economic incentive, on a case by case basis.
Exclusion:
• Incentives provided through Industrial Promotion Policy-2004 & Action Plan (including provisions as amended in 2007) will not be available for certain industries such as slaughter house, aerated cold drinks (excluding pulp-based cold drinks), wine, tobacco and tobacco-based products, pan masala, gutkha.
39 STATE POLICIES AND INCENTIVES Madhya Pradesh November 2010
Sector specific policies … (2/9)
Industrial Promotion Policy-2004 & Action Plan (including provisions as amended in 2007) Aims: The policy envisages creating an industry-friendly administration, quality infrastructure, maximizing employment opportunities, tackling industrial sickness, rationalising rates of commercial taxes and bolstering private sector participation. Incentives provided to industrial units commencing operation on or after April 1, 2004 are as follows: • For companies with investment between US$ 0.217 million and US$ 2.17 million, 50 per cent of the commercial tax and central sales tax (excluding commercial tax on purchase of raw material) will be reimbursed for three years for those located in economically advanced districts and five years for those located in the backward districts.
• For companies with investment above US$ 2.17 million, 75 per cent reimbursement on taxes will be available for a period of three to 10 years depending on investment amount and location of unit.
• Projects with investments above US$ 5.43 million will be considered as mega projects and five to 20 acres of land at concessional rate of 25 per cent of stipulated premium rate would be provided, subject to availability of land.
• Mega projects, which involve modern technology and management will be provided with further benefits on case-to-case basis. Industrial units in food and agro-processing, milk products, herbal and forest-based products will be considered as mega projects for investment of US$ 2.17 million and above.
• Partial or full exemption from stamp duty and registration charges will be provided on loan related mortgage agreements based on location of units.
40 STATE POLICIES AND INCENTIVES Madhya Pradesh November 2010
Sector specific policies … (3/9)
Industrial Promotion Policy-2004 & Action Plan (including provisions as amended in 2007), (continued) Incentives: • Exemption from electricity duty on captive power generation will be provided for five years.
• Interest subsidy, at the rate of 3 to 5 per cent will be provided for five to seven years for a total amount of US$ 20,000 to US$ 40,000, depending on location of units.
• Industries such as textiles, IT, biotechnology, automobiles, pharmaceuticals and herbal, food processing, agriculture and urban waste processing with fixed capital of US$ 0.11 million have been categorised as thrust sectors.
• A special subsidy at the rate of 25 per cent of fixed investment, up to US$ 22,000 to US$ 54,000, will be provided based on the location of the unit.
• Food processing industry will be exempted from –mandi fee levied on the agricultural produce brought as raw material from outside the state.
41 STATE POLICIES AND INCENTIVES Madhya Pradesh November 2010
Sector specific policies … (4/9)
IT Policy, 2006 Objectives: The objective of the policy is to improve the life of common man by leveraging the strength of e-governance and attract investment in the sector by providing conducive environment and highly skilled manpower to transform the state from a resource-based economy to a knowledge-based economy. Key initiatives:
• Software, business process outsourcing (BPO), ITeS and computer hardware will be considered as IT industry. The state intends to promote IT industry in four cities, viz., Indore, Gwalior, Bhopal and Jabalpur.
• Select 500 government schools will be provided modern computing hardware, software and Internet connectivity.
• Centres of excellence will be established in all government engineering colleges and select other government colleges. Large and reputed companies will be invited to teach technology and provide their certification in these centres.
• English language teaching will be promoted in school education to equip students with language skills required in the IT industry.
• A cabinet committee will be created for ensuring successful implementation of the policy.
42 STATE POLICIES AND INCENTIVES Madhya Pradesh November 2010
Sector specific policies … (5/9)
IT Policy, 2006 (continued) Key incentives:
• All incentives provided under the industrial policy will be applicable to the IT Industries. Single-window clearance will be provided for setting up IT units.
• Reimbursement of 30 per cent of the cost (with a ceiling of US$ 8,700) on acquiring capability maturity model (CMM) and peoples capability maturity model (PCMM) level-three certification will be provided.
• Exemption up to twice the existing floor area ratio (FAR) will be provided for IT investment area.
• Rate of property tax in the IT investment area will be at par with that of residential premises.
• IT industry will be provided power through a dedicated feeder. No prior permission will be required for installing captive power plant for IT industry.
• Rebate on the cost of land, linked to employment generation capacity of the investment will be provided.
• Exemption from electricity duty, entry tax and work-contract tax will be provided.
• IT units in IT investment area will be exempted from payment of octroi, entry tax and local bodies‟ tax for all capital goods and raw material purchased by them.
• All incentives will be for five years from the date the IT unit becomes operational.
• Companies establishing IT industries in the state will be entitled to special economic zone (SEZ) status under the Central Government provisions.
43 STATE POLICIES AND INCENTIVES Madhya Pradesh November 2010
Sector specific policies … (6/9)
Biotechnology Policy, 2003 Key objectives: • Conservation of the state's biodiversity and the sustainable use of its biotic resources. • Production of high-yielding, draught and pest-resistant seeds for agriculture and horticulture crops suited to different agro- climatic zones. • Improvement of quality of livestock and poultry, especially the breeds indigenous to the state. • Enhancement of productive potential of the aquatic eco-system. • Promotion and cultivation of medicinal and aromatic plants. • Production of cost effective drugs that help counter diseases common in the tropical and sub-tropical regions of the country. • Promotion of environmentally safe technologies to reduce pollution, and treatment of urban waste and industrial effluents. • Efforts to increase the number of those species whose numbers are declining. Key initiatives:
• Agriculture, animal husbandry, fisheries, forest, medicinal and aromatic plants, health, environment protection, education, training, research and development have been identified as the key areas for development.
• Eco-friendly agriculture involving practices based on locally available biodegradable waste, bio-fertilizers and bio-pesticides will be steadily expanded to cover the entire state.
• Research programme and application of biotechnology for improvement of quality of livestock and fish stock will be emphasised.
44 STATE POLICIES AND INCENTIVES Madhya Pradesh November 2010
Sector specific policies … (7/9)
Biotechnology Policy, 2003 (continued) Key initiatives:
• Endeavour will be made to identify traits in the commercially important species available in the vast forest land in the state and comprehensive hybridisation programme will be taken up.
• Modern techniques of biotechnology will be encouraged for cultivation of medicinal and aromatic plants.
• The State Government will participate in the development of strategies for prevention and cure of diseases induced by malnutrition, faulty diet and lifestyles through application of medical biotechnology.
• Bio-remediation will be encouraged as an alternative to chemical treatment of industrial effluents and urban waste.
• Partnerships between rural and tribal communities and research institutions will be established to improve and expand the applications environment for traditional knowledge and practices.
• The existing educational facilities will be expanded by encouraging universities and colleges to set up facilities for under-graduate and post-graduate level programs in biotechnology.
• An appropriate policy framework for biotechnology industry will be created, which will have incentives and concessions for large, medium and small scale industries. Integrated biotechnology parks will be set up in the state.
• To implement the salient features of the policy, world-class institutes of life sciences and technology, biotechnology parks, bio- centres will be set up at selected farms of the state agriculture department, medicinal and aromatic plant information exchange.
• Expansion of bio-village programme will be taken up.
45 STATE POLICIES AND INCENTIVES Madhya Pradesh November 2010
Sector specific policies … (8/9)
Special Economic Zone Policy Aim: To promote development of SEZ in the state. Objectives: • All SEZ developers and units will receive exemption from payment of commercial tax, turnover tax, value added tax, octroi, mandi tax, purchase tax, electricity cess, stamp duty or any other kind of cess or levy of the State Government for any transaction between them, within the zone as well as on sales made to domestic tariff area.
• SEZ units will receive all required clearances under the single-window system.
• The State Government will provide adequate water supply for drinking, industrial and other use.
• Processes for obtaining consents and clearances pertaining to pollution control will be simplified.
• The SEZ will be exempted from electricity duty, cess and any other tax or levy on sale of electricity for self generated and purchased power.
46 STATE POLICIES AND INCENTIVES Madhya Pradesh November 2010
Sector specific policies … (9/9)
Tourism Policy, 1995 Aim: The policy envisages creation of conducive environment to attract private investment in the tourism sector and more meaningful role of the Government. Incentives and initiatives: • Projects with at least ten rooms for accommodation and investment of US$ 110,000 will be considered for incentive package.
• Incentives will be provided to hotels, motels, recreation centres, ropeways, museums, amusement parks, craft villages, convention centres, air-conditioned buses for transportation of tourists and other tourism related activities such as adventure tourism, gliding, parasailing, river rafting, boating, trekking, rock climbing, etc.
• Government land will be provided as equity contribution to the project.
• Exemption under the Urban Land Ceiling Act will be provided on a case-to-case basis.
• New projects will be exempted from luxury tax, entertainment tax and sales tax for ten years since commencement of operations.
47 MADHYA PRADESH November 2010
Contents
Advantage Madhya Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Madhya Pradesh
Logos used in this section are registered trade marks of the respective companies
48 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Auto and auto components
• Madhya Pradesh has an automotive cluster located Key players at Pithampur, which is an industrial growth centre near Indore. • Bridgestone India Private Limited • Eicher Motors Limited • The basic industrial infrastructure available in the automotive cluster includes power, water supply, • Force Motors Limited telecommunication services, road and a dry port. • Hindustan Motors Limited • Jaya Hind Industries Limited • The Pithampur automotive cluster is among the industrial clusters in India that have been identified • Mahindra Two Wheelers Limited by the Central Government for implementation of • Caparo India
the Industrial Infrastructure Up-gradation Scheme • MAN FORCE TRUCKS Private Limited (IIUS). The scheme aims at improving the competitiveness of functional clusters across the • Gajra Group country. • J K Tyre
• The Pithampur automotive cluster has automotive original equipment manufacturers (OEMs) such as Force Motors, Eicher Motors, Hindustan Motors and Mahindra Two wheelers, major tyre producing unit of Bridgestone and about 30 auto component and ancillary units.
49 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Auto and auto components – company profiles … (1/3)
Bridgestone India Private Bridgestone India Private Limited is a part of Bridgestone Corporation, Japan, and is one of the Limited leading manufacturers of tyres in India. The company started commercial production of tyres in 1998 in its plant at Kheda in Madhya Pradesh. The company produces around 2.7 million tyres, annually, including passenger steel belted radial tyres and tubes, and light commercial vehicle steel belted radial tyres and tubes. It is major supplier to car manufacturers and has over 1,000 dealers across India. It employs around 900 people . Eicher Motors Limited Eicher began its business operations in 1959 with the rolling out of the first tractor in India. Today, the Eicher Group has diversified business interests such as design and development, manufacturing and local/international marketing of trucks and buses, motorcycles, automotive gears and components. The Pithampur plant of Eicher has a state-of-the-art manufacturing facilities with capacity of producing 40,000 vehicles, annually. It has an auto component manufacturing facility at Pithampur (an SEZ covering 38,000 sq metre) and Dewas (plant area of 18,000 sq metre). Volvo-Eicher Commercial Vehicles (VECV), a joint venture of EML with AB Volvo, Sweden will invest US$ 60.8 million for a new engine plant in the existing facility at Pithampur. The new plant, which will be completed by 2012, will add capacity of 85,000 units and will serve domestic and export markets. The company recorded revenues of US$ 79.7 million in the year ending December 2009. Force Motors Limited Force Motors is a vertically integrated automobile company which designs, manufactures and markets its range of vehicles – tractors, three wheelers, light commercial vehicles, multi-utility vehicles and heavy commercial vehicles. The manufacturing plant at Pithampur was set up in 1987 under license from Daimler-Benz to manufacture utility vehicles. The plant was further expanded in 1997. Subsequently, it also obtained ISO 9001: 2000 certification. The company recorded revenues of US$ 217 million in 2009-2010.
50 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Auto and auto components – company profiles … (2/3)
Hindustan Motors Limited Hindustan Motors Limited (HML), pioneer in automobile manufacturing in India, is the flagship company of the C. K. Birla Group. The company manufactures passenger cars, multi-utility vehicles and road-trusted vehicles (RTV). In technical collaboration with Australian OKA Motor Company, HML manufactures RTV in its plant at Pithampura. The company recorded revenues of US$ 122.4 million in 2009-2010. Jaya Hind Industries Limited Jaya Hind Industries, a group company of Force Motors, was established in 1947 with business interest in auto and auto component manufacturing. The company has its manufacturing plants in Urse and Akrudi in Maharashtra and the fabrication division in Pithampura in Madhya Pradesh. The company has established a tipper manufacturing facility with capacity of 200 tippers per month which will be supplied to another group company MAN Force Trucks Private Limited. Mahindra Two Wheelers Mahindra Two Wheelers Limited was founded in 2008 when Mahindra & Mahindra Limited Limited (M&M), India's leading automotive companies took over Pune-based Kinetic Motor Company Limited (KMCL). The company has a state-of-the-art, ISO 9001 certified manufacturing facility at Pithampur in Madhya Pradesh with capacity to assemble about 450,000 units per annum. The group company, M&M recorded revenues of US$ 3.9 billion in 2009-2010.
51 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Auto and auto components – company profiles … (3/3)
Caparo India The Caparo Group is a UK-based US$ 1.3 billion company with business interest in steel, automotive and general engineering goods. Caparo India, the Indian business arm of the group, provides complete solutions in designing, developing and manufacturing of automotive systems, assemblies and components to original equipment manufacturers and engineering industries. The company has two plants at Pithampur for manufacturing of stamping and serves Eicher Motors and Force Motors. The plants, together, have a capacity of 15.4 million strokes per year and employ around 468 personnel. It also has a steel tube manufacturing plant at Dewas with capacity of 48,600 tonnes per year and employs around 540 people. MAN FORCE TRUCKS Private MAN FORCE TRUCKS Private Limited is a joint venture between MAN Nutzfahrzeuge AG of Limited Germany and FORCE Motors Limited of India. The company manufactures commercial vehicles in its plant at Pithampur in Madhya Pradesh. The range of products manufactured includes mining and construction tippers, haulage tractors and multi axle trucks. The plant has installed capacity of 24,000 vehicles per annum and almost 50 per cent of the production is earmarked for exports. Gajra Group The Gajra Group has business interest in manufacturing of transmission and differential gear, cutting tools and tooling (jigs and fixtures). The company earns around 50 per cent of its revenue from exporting these products. It has a manufacturing plant at Dewas in Madhya Pradesh, which has 130,000 sq ft of machine shop and 29,000 sq ft of heat treatment facilities.
J K Tyre J K Tyre is one of the leading tyre manufacturers in India. The company was pioneer in introducing radial tyres in India. It has a manufacturing plant in Banmore in Madhya Pradesh. Radial tyres for passenger cars are manufactured in the plant, which has been awarded the “Golden Peacock Environment Management Award” for excellence in environment protection. The company recorded revenues of US$ 834.7 million in 2009-2010.
52 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Textiles
• Madhya Pradesh is one of the major cotton producing Key players states of India. In 2008-09, cotton was grown on 650,000 hectares in the state with a total production of • Century Textiles and Industries Limited 1.8 million bales. • Grasim Industries Limited
• Maral Overseas Limited (Bhilwara) • A large number of cotton textile mills are clustered • S. Kumars Nationwide Limited around Indore, Dewas, Ujjain and Malanpur. • S R F Limited
• The Indore SEZ has been identified by Central • Vardhman Textiles Limited Government for setting up an apparel park under the • Raymond Limited
Apparel Park for Exports Scheme (APES). Further, • Dhar Textiles Indore has been identified for infrastructure development under the Textiles Centre Infrastructure • Abhishek Industries Limited Development Scheme (TCIDS).
53 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Textiles – company profiles … (1/2)
Century Textiles and Industries Century Textiles and Industries Ltd was incorporated in 1897. The company has interest in Limited textile, rayon, cement and paper. Yarn and denim production units of the textile business are located at Satrati in Madhya Pradesh. The plant is equipped with 24,960 spindles for manufacture of yarn and produced about 4,541 tonnes of yarn during 2008-09. The denim division has production capacity of 21 million meters of denim fabrics per annum. The company recorded revenues of US$ 955.5 million in 2009-2010. Grasim Industries Limited Grasim Industries Limited, a flagship company of the Aditya Birla Group, is one of the leading companies in India with diverse interest in cement, chemicals and textiles. Its textile plants are located at Bhiwani, Haryana and Malanpur, Madhya Pradesh. The Malanpur unit of the company manufactures worsted dyed yarn spun from pure merino wool along with polyester and other blends. The company has a wide retail network and also serves international apparel manufacturers. The company recorded revenues of US$ 1.8 billion in 2009-2010. Maral Overseas Limited Maral Overseas Limited, one of India‟s largest vertically integrated textile companies is a part of (Bhilwara) LNJ Bhilwara group. The company has manufacturing capability of producing 1,500 tonnes of grey yarn, 125 tonnes of dyed yarn, 400 tonnes of knitted fabric and 500,000 pieces of garments every month. One of the two units of the company are located at Khargone in Madhya Pradesh which produces yarn and fabrics. The unit also has a 10 MW captive power plant. The company recorded revenues of US$ 114.4 million in 2008-09.
54 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Textiles – company profiles … (2/2)
S Kumars Nationwide Limited S Kumars Nationwide Limited is one of India‟s leading textile and apparel company with expertise in multi-fibre manufacturing. The company has four state of art manufacturing units with collective capacity of 200,000 metre of fabric per day. Its Chamunda standard mills and Amana manufacturing unit in the outskirts of Dewas, Madhya Pradesh manufacture a fine variety of fabric – Damask. Product of the plant caters to domestic market as well as exported to Europe. The company recorded revenues of US$ 459.6 million in 2009-2010. SRF Limited SRF Limited is a manufacturer of chemical-based industrial intermediates with presence in UAE, Thailand and South Africa apart from India. The company is a global leader in technical textile business and is a domestic leader in refrigerants, engineering plastics and industrial yarns as well. SRF manufactures tyre cord fabrics in its Malanpur plant in Madhya Pradesh. The company has an ultra-modern packaging plant in the Indore SEZ with an annual capacity of 21,000 tonnes. The company recorded revenues of US$ 462.8 million in 2009-2010. Vardhman Textiles Limited The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 700 million. The company has manufacturing plants in Mandideep, Satlapur and Bhudhni in Madhya Pradesh. The yarn manufacturing units are located in Mandideep (74,496 spindles), Satlapur (170,528 spindles) and Bhudhni (60,000 spindles). Further, the Bhudhni plant has fabric weaving unit (400 looms) and a fabric processing unit with capacity of 40 million metre per annum. The company recorded revenues of US$ 583.4 million in 2009-2010.
55 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Textiles – company profiles … (2/2)
Raymond Limited Raymond is a major fabric manufacturer in India. Besides, the company has also business interests in engineering and aviation. The company is one of the large integrated manufacturer of worsted fabric in the world and commands around 60 per cent market share in India. The total production capacity of the company is around 38 million metres of wool and wool- blended products. One of the four plants of the company is located at Chhindwara in Madhya Pradesh. The company recorded revenues of US$ 285.7 million in 2009-2010. Dhar Textiles Dhar Textile is a manufacturer and exporter of yarns, fabrics and garments. It has a spinning unit in Pithampur, Madhya Pradesh with 1,296 rotors and 3,840 spindles and installed capacity of 3,600 tonnes per annum. The weaving division of the company is equipped with 30 airjet looms and eight rotary printing and curing ranges with loop steamer. The garment manufacturing plant of the company has capacity of 50,000 units per month. Abhishek Industries Limited Abhishek Industries is the flagship company of US$ 543 million Trident Group, which has business interest in textiles, paper, yarn, chemicals and energy. The company has five yarn manufacturing units in India, of which one is located at Budhni In Madhya Pradesh. The combined capacity of all these plants is 176,352 spindles and 1,920 rotors. The company recorded revenues of US$ 381.3 million in 2009-2010.
56 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Cement
• Jawad and Neemuch of Madhya Pradesh belong to Key players one of the seven major lime stone clusters in India and hence provide easy access to critical raw • Birla Corporation Limited
material resource for the cement industry. • ACC Limited
• Everest Industries Limited • The state has total limestone reserves of 3,625.9 million tonnes, spread across more than15 districts. • Heidelberg Cement India Limited • Jaypee Group
• In 2009, total installed capacity in the state was • Prism Cement Limited around 20 million tonnes of cement per annum – one of the highest among Indian states. The cement plants in the state operate at a high efficiency level with total production being close to capacity.
57 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Cement – company profiles
Birla Corporation Limited Birla Corporation Limited is the flagship company of the M P Birla group with business interests in cement, jute, polyvinyl chloride, floor covering and auto trims. The cement plant of the company is located in Satna, Madhya Pradesh. The plant with 1.73 million tonnes per annum capacity, produced 1.7 million tonnes of cement in 2008-09. The plant also has 50 MW of captive power generation capacity. The company recorded revenues of US$ 463.8 million in 2009-2010. ACC Limited ACC Limited is one of the largest cement manufacturers in India with 16 cement plants, more than 40 ready-mix concrete plants, 20 sales offices and over 9,000 dealers. In Madhya Pradesh, it has plants in Kymore with a capacity of 2.2 million tonnes per annum (MTPA). The company recorded revenues of US$ 1.7 billion in in the year ending December 2009.
Everest Industries Limited Everest Industries Limited manufactures a range of building solutions which include ceilings, walls, flooring, cladding, doors, roofing and pre-engineered steel buildings. In 2009-2010, total revenue of the company was US$ 143.6 million. One of the five manufacturing facilities of the company is located at Kymore in Madhya Pradesh. It is among the first manufacturers of fibre- cement roofing sheets and accessories in India. The plant has been awarded by State Government for excellence in the fields of safety, health and environment.
58 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Cement – company profiles
Heidelberg Cement India Heidelberg Cement India Limited is a subsidiary of the Heidelberg Cement Group, which is one Limited of the largest cement manufacturers in the world. The company has a cement plant at Damoh in Madhya Pradesh. Its cement is sold under brand name „Mycem‟. In August 2010, the plant produced 108,675 tonnes of clinker and 83,119 tonnes of cement. The company recorded revenues of US$ 207.1 million in in the year ending December 2009. Jaypee Group The Jaypee group has 13 cement plants in North India, with total installed capacity of about 21.3 million tonnes. In 2008-09, the company produced around 8 million tonnes of cement. The company has three plants in Madhya Pradesh – at Rewa (with an installed capacity of 3 million tonnes), Bela (2.4 million tonnes) and Sidhi (2 million tonnes). In 2009-2010, total production in these plants was 6 million tonnes. Prism Cement Limited Prism cement has a cement plant at Satna in Madhya Pradesh with installed capacity of 2.5 million tonnes. The company is setting up another plant at Satna with capacity of 3.6 MTPA. It also has a tile manufacturing facility at Dewas. The company recorded revenues of US$ 602.8 million in in 2009-2010.
59 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Pharmaceutical and biotechnology industry
• Madhya Pradesh has rich bio-diversity. About 31 Key players per cent of the state is under forest cover; 11 of the 25 agro-climatic zones are present in the state • Alpa Laboratories and a large variety of rare and valuable medicinal • Ipca Laboratories Limited and herbal plants are available. • Lupin Limited
• Piramal Healthcare Limited • The state has formulated a biotechnology policy, which is expected to create a conducive • Ranbaxy Laboratories Limited environment for bio-pharmaceutical industry in the state.
• Biotechnology and pharmaceuticals have been recognised as thrust sectors and incentives are provided for setting up industries in these sectors.
60 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Pharmaceutical – company profiles
Alpa Laboratories Alpa Laboratories manufactures and markets pharmaceutical products for human and veterinary use. In 2009-2010, total revenue of the company was US$ 19.7 million. It has manufacturing facility spread across 110,000 sq ft built-up area at Indore. The range of products manufactured includes injectables, tablets, capsules, creams, gels and ointments. The company is certified by World Health Organisation. Ipca Laboratories Limited Ipca is a fully integrated Indian pharmaceutical company with a strong thrust on exports. In 2009- 2010, total revenue of the company was US$ 336 million. The company has operations in over 100 countries and exports account for over 50 per cent of the income. The company has eight manufacturing plants in India. In Madhya Pradesh, it has plants at Indore (plant area of 6,503 sq m), Pithampur (200,000 sq m) and Ratlam (272,900 sq m). The plants manufacture drug intermediaries, tablets liquids, injectables, etc., and are certified by apex global agencies.
61 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Pharmaceutical – company profiles
Lupin Limited Lupin Limited is an innovation-led pharmaceutical company producing wide range of generic and branded formulations and active pharmaceutical ingredients (API). The company has two plants in Madhya Pradesh – one at Indore for formulations and another at Mandideep for API. The plant at Mandideep is approved by global authorities such as World Health Organisation (WHO), United States Food and Drug Administration (USFDA) and United Kingdom Medicine and Healthcare products Regulatory Agency (UKMHRA). In 2009-2010, the company recorded revenues of US$ 782.4 million. Piramal Healthcare Piramal Healthcare Limited (PHL) is a globally integrated healthcare company with revenue of around Limited US$ 571 million in 2009-2010. The company caters to a large range of therapeutic products under a number of divisions such as acute care, biotech, cardiac, diabetes, general medicine, orthopaedic, pain management, etc. The company has six manufacturing facilities in India, one of which is located at Pithampur in Madhya Pradesh. Ranbaxy Laboratories Ranbaxy Laboratories, one of India's largest pharmaceutical company, is an integrated, research- Limited based pharmaceutical company with global presence. In 2009, the total revenue of the company was US$ 1 billion. The company manufactures a wide range of generic medicines in its manufacturing facilities located in seven countries. It has a manufacturing facility at Dewas, Madhya Pradesh, where it has three independent units engaged in the production of cephalopsorins, semi-synthetic penicillin and non-beta-lactum products.
62 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Manufacturing
• Madhya Pradesh State Industrial Development Key players Corporation and its subsidiaries have successfully developed several growth centres across the state. • Bharat Heavy Electricals Limited
• Birla Ericsson Optical Limited • The industrial policy of the state provides • Kirloskar Brothers Limited incentives for setting up manufacturing units. • Kores (India) Limited
• Industrial infrastructure, policy incentives, labour • Crompton Greaves resources and central location of the state are • HEG Limited some of the growth drivers for manufacturing • AVTEC Limited industry in the state. • L&T-Case Equipment Private Limited
63 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Manufacturing – company profiles … (1/2)
Bharat Heavy Electricals Bharat Heavy Electricals Limited (BHEL) is a large engineering and manufacturing enterprise in Limited India in the energy-related and infrastructure sector. In 2009-2010, total revenue of the company was US$ 7.3 billion. The Bhopal unit of BHEL was set up in 1956 with technical assistance from Associated Electricals (India) Limited, a UK-based company. The unit has capability to manufacture hydro-, steam-, marine- and nuclear-turbines, heat exchangers, hydro and turbo generators, transformers, switchgears, control gears, transportation equipment, capacitors, bushings, electrical motors, rectifiers, oil drilling rig equipment and diesel generating sets. The unit also has a material testing and instrument calibration laboratory and a township spread across 20 sq km for its employees. Birla Ericsson Optical Limited Birla Ericsson Optical Limited (BEOL), an M.P. Birla Group company, was established with technical and financial collaboration with Ericsson Network Technologies AB of Sweden. In 2009-2010, total revenue of the company was US$ 22.1 million. The company has a plant in Rewa, near Bhopal with an installed capacity of more than 53,000 cable km per annum of optical-fibre and 4.3 million conductor km of jelly-filled copper telephone cables. The company exports products to a large number of countries in Asia, Europe and Australia.
64 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Manufacturing – company profiles … (1/2)
Kirloskar Brothers Limited Kirloskar Brothers Limited (KBL) is the flagship company of the US$1.2 billion Kirloskar Group. KBL has business interest in large infrastructure projects such as water supply, power generation and irrigation, manufacturing of pumps for domestic, agricultural and industrial use. The total sales of KBL in 2009-2010 was around US$ 590 million. The company has four manufacturing plants, one of which at Dewas in Madhya Pradesh was established in 1962. The plant manufactures pumps for domestic and agricultural use. The company recorded revenues of US$ 428.5 million in 2009-2010. Kores (India) Limited Kores (India) Limited was incorporated in 1936 and has business interest in diverse fields such as office products, foundry, textiles, pharmaceuticals, engineering, etc. The engineering division of the company has plant at Pithampur in Madhya Pradesh. The plant is set up on an area over 70,000 sq m and has facilities such as machine shop, fabrication shop and assembly shop. The company produces hydraulic tank, pump and drills in the plant at Pithampur. Crompton Greaves Crompton Greaves is a part of US$ 3 billion Avantha Group. The company is engaged in designing, manufacturing and marketing of technologically advanced electrical products and services. The company manufactures transformers and DC machines at its plant in Mandideep, Madhya Pradesh. The company has another plant in Malanpur where it manufactures transformers. The company recorded revenues of US$ 1.1 billion in 2009-2010.
65 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Manufacturing – company profiles … (2/2)
HEG Limited HEG limited is a part of the Bhilwara group and is a manufacturer of graphite electrodes and carbon specialities. The company manufactures graphite electrode at its plant in Mandideep. The plant spread across 170 acre has capacity to produce 52,000 tonnes of ultra high performance grade electrodes. It also has a 40 mega watt captive power plant. Around 80 per cent of the production of the plant is exported. The plant is one of the largest in Southeast Asia and Middle-East in its category and employs 983 personnel. The graphite electrode business of the company accounts for around 80 per cent of the company‟s revenue (US$ 243 million in 2009-2010). AVTEC Limited AVTEC is one of the largest independent manufacturers of engines and transmissions (power trains) in India and supplies critical auto components to reputed Indian and global original equipment manufacturers. The company has four manufacturing plants across the country. The power unit is located at Pithampur where engine and transmissions components for automobiles are manufactured. The plant manufactures engines from 1.3 litre to 3.9 litre capacity of both petrol and diesel variant. The plant is located on a 60 acre area with 36 acre of developed land. L&T-Case Equipment L&T-Case Equipment Private Limited was formed in November 1998, and is a 50:50 joint venture Private Limited between Larsen & Toubro Limited and CNH Global N.V. The company designs, manufactures and supplies construction and road building equipment such as loader backhoes and vibratory compactors. The manufacturing facility of the company is located at Pithampur in Madhya Pradesh. It is spread over 40 acres with over 12,000 sq m of built-up space, equipped with state-of-the-art facilities.
66 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Fast moving consumer goods
• A number of factors such as industrial Key players infrastructure in growth centres, labour pool and central location of the state are the drivers for • Cadbury India Limited setting up consumer goods manufacturing • Procter & Gamble (P&G) Home Products facilities in Madhya Pradesh. Limited
• Dabur India Limited • A number of multinational companies such as Cadbury, Procter & Gamble, Hindustan Unilever • Hindustan Uniliver Limited Limited, Coca Cola and Cargill have their • Jyothy Laboratories Limited manufacturing plants in the state. • Godrej Consumer Products Limited
• Coca Cola India • Majority of the manufacturing plants are located in industrial areas of the state such as Malanpur, • Cargill India Private Limited Mandideep, Pithampur and Chhindwara.
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Fast moving consumer goods – company profiles … (1/2)
Cadbury India Limited Cadbury is a leading global confectionery company with a portfolio of chocolate, gum and candy brands and operations in over 60 countries. In India, the company started its operation in 1948 and has five factories and four sales offices. The company has a factory at Malanpur industrial area in Gwalior. In 2008-09, total revenue of the company was US$ 431 million.
Procter & Gamble (P&G) P&G Home Products Limited, one of India's large consumer goods companies, is a 100 per cent Home Products Limited subsidiary of Procter & Gamble Company, USA. The company owns some of the reputed brands in fabric care products, hair care and baby care segments. The company has its manufacturing plant at Mandideep in the Raisen district of Madhya Pradesh.
Dabur India Limited Dabur India Limited is one of the leading consumer goods company in India with revenues of US$ 608 million in 2009-2010. The company has three major divisions: consumer care, consumer health and international business. One of the17 manufacturing plants of the company, is located at Katni in Madhya Pradesh. Hindustan Unilever Limited Hindustan Unilever Limited (HUL) is a subsidiary of Uniliver and is India's largest consumer goods company with a portfolio of brands in 20 distinct categories. Established in 1930, the company has 28 manufacturing plants across India and employs 15,000 persons. The company has its manufacturing plant at Chhindwara in Madhya Pradesh. The company recorded revenues of US$ 3.8 billion in 2009-2010.
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Fast moving consumer goods – company profiles … (2/2)
Jyothy Laboratories Established in 1983, Jyothy Laboratories is a multi-product company with six business divisions Limited and pan-India presence. The company manufactures and markets fabric care, insecticides, utensil cleaners, fragrances and personal care products. The company has 21 manufacturing plants spread across 14 locations. One of the manufacturing plants is located at Pithampur in Madhya Pradesh. In 2009-2010, the company recorded revenues of US$ 122.7 million. Godrej Consumer Godrej Consumer Products (GCPL) is one of the leading consumer goods companies in India Products Limited with personal and home care products. In 2009-2010, total revenue of the company was US$ 273 million. The company has a pan-India presence with four branch offices and five manufacturing plants. One of the manufacturing plants is located at Malanpur, in Madhya Pradesh.
Coca Cola India Coca Cola is one of the major beverage companies in the world. The Indian operation of the company has 50 bottling plants and a network of 21 contract packers. The company has manufacturing units at Ricchi industrial area in Jabalpur and at Pilukhedi which serve markets of Central India. Cargill India Private Cargill in India has business interest in a wide range of products, including refined oils, grain and Limited oilseeds, sugar, cotton and animal feed. In addition, Cargill develops flavour systems and operates a value investing business. Cargill has a soybean processing plant in Madhya Pradesh.
69 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Agro-based industry • Of the total gross area under crop cultivation in the state, 59 per cent is sown in the Kharif season while the other 41 per cent is sown in the Rabi season.
• About 24 per cent of the area under crop cultivation in the state can be used for cultivation throughout the year.
• In 2007-08, Madhya Pradesh was the largest producer of soybean with total production of around 5 million tonnes. Agri export zones in MP for various products/ crops
• The state is the largest producer of oilseeds; it Wheat Seed spices-coriander and fenugreek produced 6.4 million tonnes in 2007-08, accounting Pulses Oranges for 21.3 per cent of the national production. Key players • The state leads in the production of spices and is the largest producer of garlic, accounting for around • Adani Wilmar Limited 37 per cent of the total national production. • Anik Industries Limited
• Gujarat Ambuja Exports Limited • Jawaharlal Nehru Krishi Vishwavidyalaya is located in • K S Oils Limited Jabalpur and serves as a centre for teaching and research in agriculture and allied sciences. • Ruchi Soya Industries Limited • Dewas Soya Limited
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Agro-based industry – company profiles … (1/2)
Adani Wilmar Limited Adani Wilmar Limited (AWL) is a joint venture between two global corporations - Adani Group of India and Wilmar International Limited of Singapore. The company has production infrastructure across the country, with a crushing capacity of over 6,000 tonnes per day and refining capacity of over 5,000 tonnes per day. The company has a production unit in Chindwara and a packaging plant at Dewas in Madhya Pradesh. Anik Industries Limited Anik Industries Limited manufactures and markets dairy and milk derivative products, wind power, soya protein isolate and concentrate. The company has two milk processing unit in Madhya Pradesh for manufacturing of dairy products– one at Dewas (capacity of 240,000 litre of milk per day) and another at Bhopal (capacity of 100,000 litre of milk per day). These units are supported by 11 chilling centres spread across the state which collect milk from more than 5,000 villages. The company recorded revenues of US$ 256.2 million in 2009-2010. Gujarat Ambuja Exports Gujarat Ambuja Exports Limited (GAEL) is involved in agro-processing and trading with a major Limited focus at export. The company has three manufacturing plants, with combined capacity of 4,000 tonnes per day. One of the soya processing plants of the company is located at Pithampur, near Indore in Madhya Pradesh. Products of the company are exported to Southeast Asia, Middle East and other Asian countries. The company recorded revenues of US$ 297.6 million in 2009-2010.
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Agro-based industry – company profiles … (2/2)
K S Oils Limited K S Oils is a leading Indian integrated edible oil company which produces and markets mustard oil, refined oil and vanaspati. The company has its fully integrated plant at Morena in Madhya Pradesh with crushing capacity of 1,475 metric tonnes of mustard seed per day. The plant also has an in-house packaging unit. In 2009-2010, a plant at Guna has been commissioned with 1,200 metric tonnes day (mtpd) of oil mill, 1,650 mtpd of solvent extraction and 200 mtpd of refining capacities. The upcoming plant at Ratlam will have 1,000 mtpd of oil mill, a solvent extraction plant with capacity of 1,000 mtpd and a refinery of 200 mtpd. The company recorded revenues of US$ 860.7 million in 2009-2010. Ruchi Soya Industries Limited Ruchis Soya Industries Limited is one of the major agro-based product manufacturers in India. Product portfolio of the company includes edible oil, soya foods, bakery fat and vanaspati. It is also the largest exporter of soya foods and lecithin from India. The company has wide presence in Madhya Pradesh with six manufacturing plants located at Mangla, Shujalpur, Guna, Piaparia, Gaderwada and Jabalpur and three depots at Gwalior, Jabalpur and Indore. The company recorded revenues of US$ 2.8 billion in 2009-2010. Dewas Soya Limited Dewas Soya Limited, a company of Hind Group, commenced operations of its soybean extraction plant in Dewas, Madhya Pradesh in 1995. The extraction plant and the refinery of the company has capacity of 900 tonnes per day and 140 tonnes per day, respectively. It also has 150 tonnes per day plant for producing soy flour and grits. The company exports soy meal internationally.
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Tourism … (1/2) Domestic tourist arrivals • The State Government has identified the tourism 25.0 23.1 sector as one of the key areas for growth. 22.1 20.0 • In 2009, domestic tourist inflow stood at over 23 million, registering average growth of 34 per cent 15.0 13.9 per annum over last four years. In 2009, foreign 11.1 10.0
tourist arrival was over 201,000. 7.1 Tourists (million) Tourists 5.0 • The State Government has shortlisted 18 major centres, which attract a large number of domestic 0.0 and foreign tourists, for comprehensive 2005 2006 2007 2008 2009 development. International tourist arrivals 300.0 • The State Government has taken initiatives to 251.7 promote eco-tourism, wild-life and adventure 250.0 234.2 tourism, leisure and business tourism and pilgrim 201 200.0 186.6 tourism. 160.8 150.0
• The Ministry of Tourism, Government of India has 100.0 identified Chitrakoot as one of the 29 mega tourist ('000) Tourists centres to be developed across the country. 50.0 Chitrakoot will be developed as a spiritual and 0.0 wellness destination. 2005 2006 2007 2008 2009 Source: Tourism Statistics 2009, Ministry of Tourism
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Tourism … (2/2)
Major places of tourist interest in Madhya Pradesh Tourist map of Madhya Pradesh are as follows:
• Kanha: One of the largest wild-life sanctuary in Asia.
• Khajuraho: has some of the most famous sculptures in the world.
• Bhimbetka: has the oldest cave paintings in the world.
• Sanchi: houses the oldest Buddhist stupa in the world.
• In addition, the state has nine national parks and 25 game sanctuaries. Source: Maps of India
• A number of festivals such as All India Kalidasa festival, Tansen samaroh (Gwalior), Lokranjan and Khajuraho dance festival (Khajuraho) are celebrated in the state, which attracts tourists.
74 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Forest-based industries
• Madhya Pradesh has forest area of 94,689.4 sq km, Forest map of Madhya Pradesh which accounts for nearly 31 per cent of the total area of the state.
• With a share of nearly 12 per cent of the total forest area of the country, Madhya Pradesh has the largest area covered by forest among all the states in India.
• Forest-based industries are key contributors to the economy of the state (as of 2007-08, forestry and logging contributed US$ 546 million) and also provide employment to a large part of the population (estimated 30 million man-days per year).
Source: Maps of India • Madhya Pradesh accounts for nearly 25 per cent of all tendu leaves produced in India. The average annual production of tendu leaves in the state is around 2.5 million standard bags.
• In 2009-2010, 243,000 cubic metre of timber was produced and the total revenue received from sale of forest products was US$ 170 million.
75 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
IT and ITeS
• The state has optical fibre backbone of over 24,000 IT parks km that cover its 313 developmental blocks across Crystal IT Park (5,50,000 sq ft) Indore 45 districts. Hardware and Software Bhopal Technology Park (200 acres) • The state is home to the country‟s first Indian Software Technology Park Indore Institute of Information Technology and (1,00,000 sq ft) Management (IIITM), which is located in Gwalior. IT Park (50 acres) Gwalior IT Park (90 acres) Jabalpur • Five information technology parks, located at Bhopal, Indore (2), Gwalior and Jabalpur, are at various stages of development. IT projects in MP
• All the IT parks in the state has been given SEZ IT Park, Gwalior status.
• The IT policy of the state provides incentives to the Hardware & Software investors in the information technology sector. Technology Park, Bhopal
Software Technology Park, • A government society MAP_IT headed by the Chief Indore Minister of the state and represented by Crystal IT Park, Indore government and industry has been established to Jabalpur IT Park, Jabalpur implement the IT policy and propel the growth of IT in Madhya Pradesh. Source: Maps of India
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Mineral-based industry… (1/3)
• The state has vast mineral deposits of diamonds, Mineral reserves as percentage of India‟s reserves slate, pyrophyllite, diaspore, coal, limestone, copper ore and manganese among others. Limestone 6.3 Coal 7.8 Coal Bed Methane 10.0 • In 2007-08, mining and quarrying contributed Dolomite 11.8 US$ 1.7 billion to the GSDP of the state. Manganese Ore 19.9 Rock Phosphate 36.3 • Madhya Pradesh is the sole producer of Pyrophyllite 50.0 diamonds in India. Besides, the state is the largest Copper Ore 61.5 Diaspore 65.4 producer of minerals such as pyrophyllite and 100.0 copper. Diamond 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% • The state has over 60 per cent of the total Source: Directorate of Geology and Mining, Madhya Pradesh national reserves of copper ore. As of 2005
• The thickest coal seam (135 m) of Asia is found at the Singrauli coalfield in the Sidhi district of Madhya Pradesh.
• Major mineral-based industries in the state are cement, thermal power generation, ceramic- products, tiles and refractory.
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Mineral-based industry… (2/3)
Reserves and production of minerals in Madhya Pradesh Reserves^ as of 2005 Share of the state in the Production Share of the state in the Name (million tonnes) national reserve (per cent) (tonnes)* national production (per cent) Diamond ** 1,205 100.0 498 100.0 Pyrophyllite 10.3 50.0 118,201 79.1 Copper ore 227.1 61.5 1,202,000 54.8 Diaspore 2.0 65.4 8,701 43.8 Manganese ore 27.5 19.9 439,000 21.3 Clay (others) - - 95,000 19.4 Shale - - 414,000 18.4 Coal# 19,758.4 7.8 51,426,000 15.1 Limestone 795.1 6.25 19,312,000 12.8 Rock phosphate 19.2 36.3 162,000 12.3
^Reserve: proved and probable **Unit for diamond reserve in thousand carat #As of January 2006 *Production between March and December 2008 Source: Directorate of Geology and Mining, Madhya Pradesh
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Mineral-based industry – company profiles… (3/3)
Hindustan Copper Limited Hindustan Copper Limited (HCL) is a vertically integrated copper manufacturing company. In 1982, the company established its Malanjkhand copper project, which has the single-largest copper deposit in the country. The Malanjkhand mine has a copper deposit of 221 million tonnes with 1.31 per cent copper concentration. The company possesses an open-pit mine with capacity of 2 million tonnes per annum, concentrator plant, tailing disposal system and other auxiliary facilities. The plant contributes to 90 per cent of the production of the company. The company recorded revenues of US$ 275.2 million in 2009-2010. NMDC Limited NMDC is a public sector unit involved in mining of wide range of minerals such as iron, copper, lime stone, dolomite, gypsum, tin, graphite, diamond among others. NMDC is the only organised producer of diamond in India and produces diamond from its Majhgawan mine at Penna in Madhya Pradesh. The production capacity at the mine is around 84,000 carat per annum. The mine employs around 240 persons. The company recorded revenues of US$ 1.3 billion in 2009-2010.
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Major industrial projects being implemented
Investment Project Sector Promoter Location (US$ million) Sasan ultra mega power project Power Sasan Power Limited 4,347.8 Sasan Bharat Oman Refineries Bina refinery Refinery 2,256.1 Bina Limited Aluminium smelter (Sidhi) project Aluminium Hindalco Industries Limited 1,673.9 Orgari Vindhyachal super thermal power project – Power NTPC Limited 1,285.9 Vindhyanagar stage-IV Narmada Valley Development Indira Sagar (Narmada Sagar) irrigation project Irrigation 1,119.6 Punasa Authority (NVDA) Pithead coal-based power (Sidhi) project Power Essar Power Limited 1,065.2 Sidhi Power Power Grid Corporation of Madhya Western Region grid strengthening scheme-II 1,043.5 distribution India Limited Pradesh* Madhya Pradesh Power Coal-based power (Khandwa) project Power 978.3 Khandwa Generating Company Limited Omkareshwar irrigation project Irrigation NVDA 898.7 East Nimar Bargi diversion irrigation project – RBC^ Irrigation NVDA 566.1 Jabalpur Shree Maheshwar Hydel Maheshwar hydel power project Power 532.7 Mandleshwar Power Corporation Limited
*Partially in Madhya Pradesh ^Right Bank Canal Source: www.projectstoday.com
80 BUSINESS OPPORTUNITIES Madhya Pradesh November 2010
Key industrial projects being planned
Investment Project Sector Promoter Location (US$ million) Finished Integrated steel (Parasia) project SKS Ispat & Power Limited 1,630.5 Parasia steel Coal-based power (Bhokha Dongri) project Power Reliable Thermal Power Limited 1,435.8 Manpur Coal-based power (Singroli) project Power DB Power Limited 1,304.3 Singroli Coal-based power (Anuppur) project Power Vandana Power Ventures Limited 1,304.3 Anuppur Coal-based power (Shadol) project Power Jain Energy Limited 1,260.9 Shahdol Today Energy (M P) Private Coal-based power (Gotegaon) project Power 1,174 Gotegaon Limited Coal-based power (Sidhi) project Power Jaiprakash Power Ventures Limited 1,087.0 Nigrie Cement (Madhya Pradesh) project Cement Bhushan Steel Limited 869.5 Damoh Cement (Maihar) project, Phase-I Cement Reliance Cementation Limited 543.5 Satna Finished SPJ Steel & Minerals Private Steel (Damoh) project 489.1 Damoh steel Limited Cement (Maihero) project Cement Adhunik Corporation Limited 242.6 Satna D V Steel Industries Private Coal-based power (Sidhi) project Power 210.1 Sidhi Limited
Source: www.projectstoday.com
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Contents
Advantage Madhya Pradesh
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Madhya Pradesh
82 DOING BUSINESS IN MADHYA PRADESH Madhya Pradesh November 2010
Key approvals required
List of approvals and clearances required Departments to be consulted Prior to setting up the unit Registration District Trade and Industries Centre Allotment of land/shed Permission for land use District authorities No-objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board Approval for construction activity and building plan Development authority No-objection certificate Fire department Provisional trade tax registrations Central and state excise departments Before commencement of production No-objection certificate under Water and Air Act Madhya Pradesh Pollution Control Board No-objection certificate Fire department Permanent trade tax registration under Central Sales Tax Act 1956 Central and state excise departments Registration under Central Sales Tax Act 1956 After commencement of production/activity Registration Department of Commerce, Industry & Employment
83 DOING BUSINESS IN MADHYA PRADESH Madhya Pradesh November 2010
Cost of doing business in Madhya Pradesh
Cost parameter Cost estimate Source
Cost of land Madhya Pradesh State Industrial US$ 3 to US$ 11 (per sq m) Development Centre Hotel costs per room per night US$ 90 to US$ 120 Leading hotels in the state (four-star, five-star hotel) Residential rent US$ 130 to US$ 220 Industry sources (per month for1,200 sq ft apartment ) Commercial rent US$ 0.7 to US$ 1.1 Industry sources (per sq ft per month)
Monthly fixed charges: US$ 3.5 (11KV) to US$ 7.4 (132 KV) Power cost (industrial, high tension) Madhya Pradesh State Electricity Board Energy charges: US 7.3 cents per kWh (11KV) to US 6.5 cents per kWh (132 KV)
Department of Labour, Government of Labour (man year) US$ 1,075 to US$ 1,160 Madhya Pradesh
84 DOING BUSINESS IN MADHYA PRADESH Madhya Pradesh November 2010
Key nodal agencies in Madhya Pradesh
Department of Commerce, The department is responsible for industrialisation in the state by way of development of small, Industry & Employment medium and large scale industries and new investment. The department is also responsible for creation of basic infrastructure and development of industrial parks. The department has several support institutions such as Madhya Pradesh State Industrial Development Corporation (MPSIDC) and Audhyogik Kendra Vikas Nigam (AKVN) in six cities. District Trade and Industries District Trade and Industries Centres are district-level offices of the Department of Commerce, Centre Industry and Employment of the State Government. These centres are empowered to provide clearance for setting up industrial units. Madhya Pradesh State Madhya Pradesh State Industrial Development Corporation (MPSIDC) is a support institution of Industrial Development Department of Commerce, Industry and Employment of the State Government. The organisation Corporation had the mandate to promote the state as an industrial destination and help companies set up and expand industries in Madhya Pradesh.
85 DOING BUSINESS IN MADHYA PRADESH Madhya Pradesh November 2010
Contact list
Key agency Contact information
Vindhyachal Bhawan Bhopal-462 004, Madhya Pradesh Department of Commerce, Industry & Phone: 91-755-255 1534 Employment E-mail: [email protected] Website: http://www.mpindustry.org
District Trade and Industries Centre Vindhyachal Bhawan District Trade and Industries Centre Bhopal-462 004, Madhya Pradesh Phone: 91-755-255 1015 AVN Towers 192 Zone-1, M.P. Nagar Bhopal-462 011, Madhya Pradesh Madhya Pradesh State Industrial Development Phone: 91-755 - 427 0370 Corporation Fax: 91-755- 427 0280 E-mail: [email protected], [email protected] Website: www.mpsidc.org
86 DOING BUSINESS IN MADHYA PRADESH Madhya Pradesh November 2010
Annexure
Exchange rates
Year INR equivalent of 1 US$ 2000 46.6 2001 48.3 2002 48.0 2003 45.6 2004 43.7 2005 45.2 2006 45.0 2007 42.0 2008 40.2 2009 46.0 2010 47.4
Average for the year
87 MADHYA PRADESH November 2010
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