EASEEASEEASEEASE OFOF OFOF DOINGDOING DOINGDOING BUSINESSBUSINESSBUSINESSBUSINESS CASECASE STUDY STUDY - SRI - SRI CITY CITY What's Ease of doing business ?
The Ease of Doing Business (EODB) index is a ranking system established by the World Bank Group. In the EODB index, ‘higher rankings’ (a lower numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of prop- erty rights. Rankings and weightage on each of the following parameters are considered to assign an overall EODB ranking for any country. A high EODB ranking means the regulatory environment is more conducive for starting and operating of businesses.
Starting a Business Protecting Minority Investors 01 Dealing with Construction Permits Paying Taxes Getting Electricity Trading across Borders
Registering Property Enforcing Contracts
Getting Credit Resolving Insolvency
02 India registers its Highest ever increase in Ease of Doing Business Rankings World Bank’s rankings acknowledge India’s reform trajectory under PM Modi
THEN NOW INDIA’S 90 100 RANKING IN 100 TERMS OF 110
Rank 120 130 132 132 EASE OF 130 134 142 130 DOING 140
150 BUSINESS 2011 2012 2013 2014 2015 2016 2017
For the year 2018, based on the rankings and weightage on each of the above parameters, India achieved highest ever jump to rank 100 out of 190 countries. Compared to last year rankings, it jumped 30 spots. With this year's performance, India became the �irst ever country to record highest jump in World Bank's ease of doing business ranking. ase of oin siness What India Inc wants from Government ...
A rethink on the economic agenda, apart from better incentives for industry such as a lower corporate tax rate, are required immediately if the investment cycle is to be revitalised.
Relaxation of fiscal consolidation targets for the next year or two ranked high on the list of suggestions made by industry bodies.
State governments should also be discouraged from curtailing capital investments, while the Centre ramped up its expenditure in highways, low-cost rural housing, rural and urban infrastructure, among other sectors.
Reducing interest rates by 100 basis points over the next year to spur consumption.
Apart from better ease of doing business, finance and cost of finance need to come down quickly, especially for SMEs. Ease of doing business in India
What foreign investors really want ?
Domestic market size Physical infrastructure
Macroeconomic stability Political stability and security
A favorable exchange rate Legal and regulatory environment
Labor force talent and skills Ease of Doing Business (Overall State Ranking)
Rank State Score Rank State Score 1 Andhra Pradesh 98.78% 13 Karnataka 88.39% 2 Telangana 98.78% 14 Uttar Pradesh 84.52% 3 Gujarat 98.21% 15 West Bengal 84.23% 4 Chhattisgarh 97.32% 16 Bihar 75.82% 5 Madhya Pradesh 97.01% 17 Himachal Pradesh 65.48% 6 Haryana 96.95% 18 Tamil Nadu 62.80% 7 Jharkhand 96.57% 19 Delhi 47.62% 8 Rajasthan 96.43% 20 Kerala 26.97% 9 Uttarakhand 96.13% 21 Goa 18.15% 10 Maharashtra 92.86% 22 Tripura 16.67% 11 Odisha 92.73% 23 Daman & Diu 14.58% 12 Punjab 91.07% 24 Assam 14.29% Parameters Setting up a business Obtaining infrastructure related utilities Allotment of land and obtaining construction permit Registering and complying with tax procedures Complying with environment procedures Carrying out inspections Complying with labour regulations Enforcing contracts
Source: World Bank Report , October 2016 SEZ - Special Economic Zone
The Indian economy has gained considerable momentum over the last one decade, by achieving and sustaining an annual GDP growth rate of over 7 per- cent. This high growth rate can be in part attributed to the growing contribu- tion of the export sector to the economy India Export – Import Scenario
2015 – 2016 Data: All Figures are in Billion USD Rank Country Export Import Total Trade Trade Balance 1 China 8.67 59.34 68.02 -50.67 2 USA 38.71 20.95 59.66 17.76 3 UAE 29.12 18.63 47.75 10.49 4 Saudi Arabia 6.14 19.47 25.61 -13.33 5 Switzerland 0.95 18.52 19.47 -17.57 6 Germany 6.82 11.62 18.44 -4.79 7 Hong Kong 11.69 5.82 17.52 5.87 8 Korea 3.41 12.54 15.94 -9.13 9 Indonesia 2.73 12.54 15.27 -9.81 10 Singapore 7.42 7.01 14.43 0.42 Total of Top countries 115.67 186.44 302.12 -70.77 India's Total 251.85 365.45 616.14 -113.60 % Share of Top Countries 45.93% 51.02% 49.03% Source: Ministry of Commerce and Industry, GoI FDI Out of Asia – Paci�ic
Courtesy: fDi Report 2016 FDI into Asia – Paci�ic
Courtesy: fDi Report 2016 Objectives of SEZ Act
• Generation of additional Economic Activity
• Promotion of Exports of Goods and Services
• Promotion of Investment from Domestic and Foreign sources
• Creation of Employment Opportunities
• Development of Infrastructure Facilities Export Performance of SEZs
Exports Growth over Years Value in Rs. Crores Billion USD Previous Year 2005-2006 22,840 5.08 2006-2007 34,615 7.69 51.6% 2007-2008 66,638 14.81 92.5% 2008-2009 99,689 22.15 49.6% 2009-2010 2,20,711 49.05 121.4% 2010-2011 3,15,868 70.19 43.1% 2011-2012 3,64,478 81 15.4% 2012-2013 4,76,159 88.18 30.6% 2013-2014 4,94,077 82.35 3.8% 2014-2015 4,63,770 70.26 -6.1% 2015-2016 4,67,337 69.75 0.8% Exports from Operational SEZ from 2005 to 2016 Source: www.sezindia.nic.in Importance of Manufacturing
• India needs to create 1 Million jobs per month • Only Large Scale Manufacturing can help this process • SEZs are one of the cheapest ways of creating jobs in manufacturing • Once we start manufacturing, Skill Development will go hand in hand India Vs China
Courtesy: fDi Report 2016 International Relevance
Like Shenzhen… Like Suzhou …
Sri City … Charting a Success Story CASE STUDY When Boundless Imagination Meets Relentless Determination...
History is in the Making. Since 2007, Sri City has been Charting the History of the Satya ed Region...
• By laying the Foundations of Growth on dry & barren lands.
• By generating Employment and Economic activity in a backward area.
• By spurring the Spirit of Entrepreneurship among local youth.
• By balancing Economic Development and Ecological Sustainability.
• By transforming an Agrarian State into a Modern Industrial State.
• By enabling a region that once depended on nearby cities for its livelihood, to start writing its own destiny. Our Vision
VISION
To create a world-class smart business destination that provides Everything a Business Needs by striking a perfect harmony between Industrial Growth, Environment, and Social Responsibility Highlights
Sri City is located in Andhra Pradesh which is ranked as No. 1 State in India by 1 World Bank for ease of doing business
Spread over 7,500 acres of land, in close proximity to Chennai. 2 Land fully acquired and owned by Sri City
Integrated Development - Work-Live-Learn-Play model 3 Multi-Product SEZ + FTWZ + DTZ + EMC + Social Infrastructure
Strategic location with excellent connectivity – 55 KMs from Chennai along NH 16 4 (formerly known as NH5) on the border of Andhra Pradesh and Tamil Nadu
Dedicated Social Infrastructure 5 Residential, Educational, Health Care, Retail and Leisure
All statutory approvals in place – Single Window Clearance in 21 days, On-board Customs, IALA 6 (Industrial Area Local Authority) exclusive to Sri City
Investment & Employment (Generated + Proposed) 7 Investment over `25,000 Cr & Employment over 35,000 Highlights
Units in Sri City have exported over Rs. 2,400 Crores till date and exports in the current 8 year 2016 – 2017 is estimated to be over Rs. 600 Crores
9 Robust Internal World Class Infrastructure
Skills Development Centre 10 Employability training to local people by Sri City HRD Academy, IL & FS, TVS Training and Siemens
11 Green Initiatives - Progressing towards being 100% Carbon Neutral Zone
12 Already home to over 165 companies – representing 27 countries
Slated to be home to more than 350 Companies With employmentExports from potential Sri City of –200,000 Over ` 1300 cr 13 and with more than 500,000 residents
Engaged world-class consultants such as Jurong, JLL, Marc Gilbert & Associates and 14 several others with tremendous expertise in design, planning and construction
Sri City today is a Functional Business City Development Model
Work Play
Learn
Industrial Zone Lifestyle & Leisure Zone
• SEZ + DTZ + FTWZ • Live • Electronics Manufacturing • Educational Institutions Cluster – EMC • Healthcare • Food Processing Zone • Commercial and Retail • Apparel Zone • Leisure / Recreation / Sports Academy • Business Parks • Housing • Functional Partnership with GoI & GoAP • Service providers & Vendor Network THE JOURNEY
2016 2014
2012 2010
2008 2008 Sri City Breaks Ground
Groundbreaking ceremony of Sri City graced by the then Hon’ble Chief Minister of Andhra Pradesh, (late) Shri. Y.S. Rajasekhara Reddy and his ministerial colleagues 2008 Sri City HR Academy: Enabling better Livelihoods 2008
• Infrastructure development continues unabated
• Venture from South Africa signs up as first client
• BFG, VRV Group, & Saakar also come on board to set up their facilities at Sri City 2009-10
• Downturn hits global economy & pace of new investments slow down
• Sri City continues with infrastructure development in order to be ready when economy gathers pace again
• 50 Km of internal roads laid 2011
• Despite difficult macro-economic conditions, 20 new units start operations in Sri City
• Alstom Transport of France signs up to manufacture Metro Rail coaches for Chennai Metro & Kochi Metro projects
• Sri City signs with Chinmaya Vidyalaya to start a CBSE school 2012
• FMCG & Food majors like Pepsico, Cadbury, and Colgate Palmolive sign up with Sri City
• Isuzu Motors signs up with Sri City to build a commercial vehicle manufacturing facility with investment of INR. 3000 crores 2013
The Chinmaya Vidyalaya School, Frontier Lifeline Medical Center and Sankara Nethralaya commence operations 2014
• IFMR Business School inaugurated on 40 acre campus at Sri City by Smt. Chanda Kochhar, MD, ICICI Bank 2014
Hon’ble Chief Minister of Andhra Pradesh, Shri Chandrababu Naidu, and Hon’ble Union Ministers Smt. Smriti Irani, and Shri Venkaiah Naidu grace the occasion of the Foundation Stone laying of Indian Institute of Information Technology at Sri City 2015
Signing of MoU Between Sri City & LONGi 2015
World’s No. 1 Electronics Manufacturer, Foxconn begins operations at Sri City. The popular Xiaomi Redmi was the first smart phone to be rolled out from its plant. 2016
Inauguration of Colgate Palmolive facility 2016
Inauguration of ISUZU Plant 2016
Pepsico Plant Inauguration
Pepsico facility at Sri City inaugurated by Hon’ble Chief Minister of Andhra Pradesh, Shri Chandrababu Naidu in the presence of Smt. Indra Nooyi, Global CEO of Pepsico. 2016
Inauguration of Mondelez Plant Strategic Location
Hyderabad West Godawari Krishna AMARAVATHI Guntur
Kurnool Ongole
Anantapur Kadapa Nellore
Chittoor Bengaluru Chennai Mysuru 55 Km from Chennai on NH-16
Puducherry Multi Modal Connectivity
PORTS AND NH 16 AIRPORTS PORTS OPERATIONAL PORTS PROPOSED
AIRPORTS
AMARAVATHI NH-16
STATE CAPITAL
NH 16 Krishnapatnam Port (100 Km)
Dugarajapatnam Port (75 Km) - Proposed
TIRUPATI Kattupalli Port (52 Km)
Ennore Port (50 Km)
Chennai Port (65 Km) CHENNAI Excellent Connectivity
Sea Ports Airports Ennore Port - 50 km • Chennai International Airport (75km) Kattupalli - 52 km Chennai Port - 65 km • Tirupati International Airport (75km) Krishnapatnam Port - 100 km Dugarajapatnam - 60 km (Proposed)
National Highway – NH-16 Heli-Cab • Two operational helipads in Sri City 55 Kms from Chennai located on NH-16 Golden Quadrilateral Corridor • Helicopter service from Chennai (On Demand)
Broad Gauge Rail Sri-Shuttle Transit • Smart, Technology enabled bus shuttle system Broad Gauge line runs alongside NH-16 for in-city transit Highway • External shuttle service from select locations including Chennai
PROJECT UPDATE, MAR 2017 Product Offering
Industrial RBFs Plots
Incubation Built to Space Suit Multi Product SEZ, FTWZ & DTZ
Engineering FMCG
IT / ITeS / BPO Automotive
Apparel & Fashion Food Processing SECTOR FOCUS Telecom Electronics / Hardware
Biotech/Formulation Logistics & Warehousing
Green Energy Aerospace Sri City Infrastructure
Road Power Customs Sewage Treatment
Inn Business Centre Food Court Medical Centre
School Solar Power Apartment College The Development format
Residential Options Educational Facilities Hospitals / Emergency Care • Studio Apartments • Schools K-12 • Emergency Care Center • 1 BR Apartments • Colleges and Universities • 50-Bed Hospital • 2 /3 BR Apartments • Vocation Training & Industrial • Ambulance Services • Town Homes & Independent Training • Pharmacies Villas • Skill Development Centres • Golf Course Villas Integrated Development
HOTEL MALL Hospitality Lifestyle Leisure
• Business Hotel • Multi cuisine / • 18-hole Golf course with • Resort Specialty restaurants & bars club house & training academy • Serviced Apartments • Multiplexes • Swimming pools • Guest Houses • Shopping Malls • Fitness Centers • Convenience stores • Sports Academy Walk to Work. Shop. Study
• Workspaces and living areas just a pleasant walk or short ride away • Concept of Home-away-from-home with Country Specific Enclaves • Multiple Housing Options for all budgets and lifestyles • Central Business District with business support facilities • Retail Outlets & Malls Education
Operational Planned Institutional Area CBSE - Chinmaya Vidyalaya School Residential School - Internationally recognized school of repute with Full boarding, Weekly IIIT - Indian Institute of Information boarding and Day Scholar facilities Technology by GoI & GoAP IFMR - Institute for Financial Institutional Zone - Foreign Universities, Management and Research Domestic, Vocational Colleges and Corporate Training Centers Great Lakes - International University Healthcare Citizen Services
Police Outpost Post Office Fire Station Sri City postal Pin : 517 646
On-campus Banking Facilities International Patronage Global Clientele
Transport
TM
R BLUE STAR NOLA&DOLA Delivering Innovative Solutions
NHK renovables
R TM Venture
LEADERS IN LOGISTICS India Metal One Steel Plate Processing Private Limited. Brakes India Limited Innovative Rollers & Pulleys
and more... Made in India. Made in Sri City.
and more... Increased Investment & Employment Opportunities
When the Industrial Park is fully developed the Total Current Investment & Estimated Investment & Investment is estimated to be Employment1 in Sri City Employment potential ` 1,20,000 Crores and will (Direct & Indirect) for 2017-2018 have a potential to provide 2 (Direct & Indirect) Over ` 25,000 Cr direct and indirect employment & over 35,000 Over ` 5,000 Cr & 25,000 to an estimated number of 1,50,000 (5 to 8 years) Customer Success Stories Operational Units
Company Isuzu Motors, Japan
Industry Automobile
Investment `3000 Cr
Employment 3000
Product Mini Truck / SUV Sign up: Mar 2013 | Ground-Breaking : May 2013 | Inauguration : April 2016
Company Cadbury, U.S.A
Industry FMCG
Investment `2500 Cr
Employment 1600
Product Chocolates Sign up: Aug 2013 | Ground-Breaking : Oct 2013 | Inauguration : April 2016 Operational Units
Company PepsiCo, U.S.A
Industry Food & Beverage
Investment `1500 Cr
Employment 1500
Product Non Alcoholic Beverages Sign up: Jul 2013 | Ground-Breaking : Dec 2013 | Inauguration : Apr 2015
Company Danieli, Italy
Industry Engineering
Investment `1150 Cr
Employment 750
Product Metal Processing Sign up: July 2011 | Ground-Breaking : Oct 2011 | Inauguration : Nov 2013 Awards
ASSOCHAM Award Sri City was listed by WCRC in “Best Multiproduct SEZ “Best Emerging Corporate City “100 Most Valuable Brands 2014” in India in South India Award” Southern Region” 2013 evaluated by KPMG 2014 SECC by EXIM India 2014
Sri City bagged Sri City bags ABP News Sri City was listed by “Most Sustainable “Brand Excellence Award” WCRC in “Asia’s Best Integrated Business City” in 2016 Real Estate Brand” in 2016 award from Times Network in 2017. Satisfied Villagers Working in Sri City
“I am very much a satis ed woman. Earlier, I Suneetha smiles and says "I am happily Nandayya of Tondoor village works as had to work for a meagre wage in the employed and have earned some respect. an electrician in SRI CITY. His children elds. It was very di cult then”. Revathi is My husband Sekhar works as driver here are studying in school and are leading a very con dent women now. SRI CITY is in SRI CITY. With our income we are able a happy life. certainly a ray of hope in her life. to send our children to school”. She is a happy women and she thanks SRI CITY for everything they have done. Contributing to the Local Economy
• Household incomes increased by 80% and average wages by 30%
• Families now have multiple earners leading to increase in family earning
• Earnings are being used for education, marriages, clearing debts, purchase of assets and consumer durables, house improvements etc
• A Large number of local people have been employed in Sri City SEZ in various positions like Security guards, Supervisors, Workers in HRD Academy, Nursery, BPO and Road works
• HRD training has also helped people, particularly women in generating self employment
• The human resources so far trained at HRD Academy will have a great potential in changing the present structure of work force
THE SEZ VILLAGES ARE DEBT-FREE Highlights from Summary of Socio-Economic Study VI – by Sri Venkateswara University, Tirupati
Sri City HRD Academy
• Initiatives to develop and integrate the skill set of the local people to suit the needs of the industries
• Sri City HRD Academy, started even before project launch (Operational since June 2006)
• People from 14 local villages benefitted
• Academy provides free of cost training to the local people in vocational skills
• Free meals and transportation provided to trainees
• Sri City also strives to find suitable jobs for these candidates through internal and external placements
• Over 5600 people trained and 3500 placed in different jobs with salaries ranging from Rs. 3500 to Rs. 5000 PM, depending on skills Sri City HRD Academy – Training Details
Name of Trade Number Trained*
1 Computers Course 798
2 English Communication 660
3 AUTOCAD 490
4 Electrical 473
5 Plumbing 440
6 Driving 412
7 Security 946
8 House keeping 869
9 Masonry 446
10 Tailoring 616
11 Embroidery 450
Total 6600 Sri City HRD Academy – Placement Details
Name of Trade Number Placed*
1 Computers Course 507
2 AUTOCAD 275
3 House keeping 693
4 Masonry 352
5 Embroidery 303
6 Driving 253
7 Security 715
8 Electrical 352
9 Plumbing 375
10 Tailoring 375
Total 4200 Skill Development Institute
Sri City has signed a MoU with IL&FS Cluster Development in October 2010 to establish a Skill Development Institute (SDI). They provide electrical, leather and apparel trainings.
With investment of Rs 3.5 Cr Sri City has setup a modern skill development centre for new industries in collaboration with Siemens & AP Govt. This will provide employment to 1000 people every year. Training will focus on IT/ITES,CNC machines and 2 & 4 wheelers.
Sri City Foundation will assist trainees to seek placement in Sri City units.
Additionally, TVS has been conducting Skill development sessions in welding, carpentry, plumbing, electrical. On an average 600 people are trained every year. SAGA
THEN… NOW… Then…
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Now… Then…
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Home to 3 universities No degree colleges Full-fledged English medium CBSE School
Fully Equipped Medical Center No Hospitals 24/7 Ambulance Service
High Child mortality rate, due to lack of Child mortality rate is nil in over 14 facility and knowledge villages in and around Sri City
No industries, therefore jobs were only 35,000 jobs created of which nearly available in the agrarian sector half are woman Sri City Today SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITYTHANKSRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY YOU SRI CITY SRI CITYSRI CITY SRI CITY SRI CITY SRI CITY SRI CITY SRI CITY