GUJARAT November 2010 GUJARAT 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 Incentives to industry Physical and social infrastructure
• Tax incentives and exemptions • Condition of physical infrastructure such as • Investment subsidies and other incentives power, water, roads, etc. • Availability of finance at cost-effective terms • Information infrastructure such as telecom, IT, • Incentives for foreign direct investment (FDI) etc. • Profitability of the industry • Social infrastructure such as educational and medical facilities
2 GUJARAT November 2010
Contents
Advantage Gujarat
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Gujarat
3 ADVANTAGE GUJARAT Gujarat November 2010
Gujarat – State profile
• Gujarat is spread over an area of 196,024 sq km (6 per cent of India‟s land area). It is located on the Western coast of India and has the longest coastline of 1,600 km in the country.
• The state has 26 districts. Gandhinagar is the capital city. Ahmedabad, Vadodara, Surat, Rajkot, Bhavnagar and Jamnagar are the other key cities.
• The state has three major groups of rivers flowing in different directions. The major rivers of central and Northern Gujarat are Narmada, Sabarmati and Mahi. Rivers flowing through the Saurashtra region are Mithi, Khari, Bhadar, Shetrunji and Bhogavo. Rivers in the Southern part of the state include Narmada, Tapi, Purna, Ambika, Auranga and Damanganga.
• There are eight agro climatic zones in the state that support cultivation of a wide range of crops.
• The most commonly spoken language of the state is Gujarati. Hindi and English are the other Indian languages used. Source: Maps of India
4 ADVANTAGE GUJARAT Gujarat November 2010
Advantage Gujarat … (1/3)
Facilitating infrastructure Gujarat has excellent infrastructure as compared to the other states. There are 42 ports, 13 domestic airports and one international airport. The state also has extensive road and rail network. The urban and rural areas have 24-hour power supply. A 2,200 km gas-grid supplies gas to the industrial areas. There are 83 product clusters, 202 industrial estates, 60 special economic zones (SEZ) and upcoming infrastructure on the Delhi-Mumbai Industrial Corridor (DMIC). Almost one-third of the DMIC project is taking place in Gujarat alone. A Dedicated Freight Corridor (DFC) is being set up between Mumbai and Delhi. Of the 20 industrial nodes identified across six states where DFC passes, six have been proposed for Gujarat alone.
Source: Maps of India
5 ADVANTAGE GUJARAT Gujarat November 2010
Advantage Gujarat … (2/3)
Industrially developed state Gujarat is the „petro capital‟ of India, contributing 34 per cent to petrochemicals and 27 per cent to the country‟s chemicals and pharmaceuticals business. It has achieved the distinction of being one of the most industrially developed states. Accounting for 5 per cent of the total Indian population, Gujarat contributes 21 per cent to India‟s exports and 13 per cent to its industrial production. The industrial sector had a 12.5 per cent growth in 2009.
Availability of skilled manpower Gujarat has good educational infrastructure with premier institutes in management, fashion, design, infrastructure planning and pharmaceuticals. Also, there are industrial training institutes in each district for training manpower for shop floor level. The State Government has many initiatives to encourage innovation in the education sector. Source: Maps of India
6 ADVANTAGE GUJARAT Gujarat November 2010
Advantage Gujarat … (3/3)
Policy support Gujarat is the only state in India where the State Government has framed policies in almost all key sectors such as industry, power, ports, road, IT, agriculture, minerals and tourism. Gujarat‟s Industrial Policy, 2009, offers attractive incentives and concessions for prospective investors.
Growing economy and industry Gujarat reported a 16 per cent year-on-year growth in GDP at current prices in 2007-08. A robust financial growth and presence of diverse industry sectors with leading national and international companies makes it one of the most attractive investment destinations in the country.
Investment destination of choice According to the outlook for corporate investments by the Reserve Bank of India (RBI), Gujarat ranks first in private corporate investments in the country. As per Deutsche Bank research paper on infrastructure Source: Maps of India investment scenario in India, 2007, Gujarat offers the most favourable outlook for infrastructure projects.
7 ADVANTAGE GUJARAT Gujarat November 2010
Gujarat in figures … (1/2)
Parameter Gujarat All-states Source Economy GSDP as a percentage of all 7.8 100.0 CMIE, as of 2007-08, current prices states‟ GSDP Average GSDP growth rate (%)* 15.6 11.8 CMIE, 2000-01 to 2007-08, current prices Per capita GSDP (US$) 1,355.7 992.5 CMIE, as of 2007-08, current prices Physical infrastructure Installed power capacity (MW) 13,908.1 159,398.5 Central Electricity Authority, as of March 2010 GSM cellular subscribers (No) 26,160,079 456,586,162 Cellular Operators Association of India, as of June 2010 Broadband subscribers (No) 322,656 4,981,976 As of October 2008 Ministry of Road Transport & Highways, Annual Report National highways (km) 3,245 70,548 2008-09 Major and minor ports (No) 1 + 41 12 +187 Ministry of Shipping Airports (No) 14 133 Airport Authority of India Social Indicators Literacy rate (%) 69.1 64.8 Census of India, 2001 Ministry of Health and Family Welfare, RHS Bulletin, Birth rate (per 1,000 population) 22.6 22.8 March 2008
*Calculated in Indian rupee terms
8 ADVANTAGE GUJARAT Gujarat November 2010
Gujarat in figures … (2/2)
Parameter Gujarat All-states Source Ease of doing business Department of Industrial Policy and FDI inflows (US$ billion) 6.6 120.2 Promotion, April 2000 to May 2010 Outstanding investments 257.3 1972.6 CMIE, as of March 2010 (US$ billion) Industrial Infrastructure PPP projects (No) 33 515 www.pppindiadatabase.com Notified as of July 2010, SEZ (No) 30 363 www.sezindia.nic.in
PPP: public private partnership: SEZ: special economic zone
Parameter Gujarat Government Policy support Sectors with specific policies Industry, SEZ, ports, mineral, power, IT, road Availability of labour Adequate
9 ADVANTAGE GUJARAT Gujarat November 2010
Key industries with policy thrust and factor advantages
Industry attractiveness matrix
High
Ports Agro and food Power processing
Dairy IT Mineral based industries Tourism
Medium Pharmaceuticals Chemicals and and biotech Policy thrust Policy petrochemicals Oil and gas Textiles and Gems and apparels jewellery Engineering and auto
Low Medium High Factor advantage *Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital
10 GUJARAT November 2010
Contents
Advantage Gujarat
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Gujarat
11 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Socio-economic snapshot of Gujarat
Parameters Gujarat Capital Gandhinagar Geographical area (sq km) 196,024 Administrative districts (No) 26 Population density (persons per sq km)* 258 Total population (million)* 50.7 Male population (million) 26.4 Female population (million) 24.3 Population growth rate 1991-2001 (%) 22.7 Sex ratio (females per 1,000 males)* 920 Literacy rate (%)* 69.1 Male (%) 79.7 Female (%) 57.8 Life expectancy at birth (2006-10) Male (years) 67.2 Female (years) 71.0
Source: Socio-Economic Review of Gujarat, 2009-2010 *Census 2001
12 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Gujarat‟s GSDP
• At current prices, the Gross State Domestic Gujarat‟s GSDP Product (GSDP) of Gujarat was about US$ 73.3 billion in 2008-09. 2008-09 73.3 2007-08 76.3 2006-07 62.6 • The average annual GSDP growth rate from 2005-06 50.4 1999-2000 to 2008-09, was about 13.4 per cent. 2004-05 41.8 CAGR 2003-04 38.5 13.4% • Gujarat was among the states that recorded 2002-03 31.0 very high GSDP growth rates in the last decade, 2001-02 25.7 compared to the other states. 2000-01 23.0 1999-00 23.6
0.0 20.0 40.0 60.0 80.0 100.0 US$ billion
Source: CMIE
13 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Gujarat‟s NSDP
• The Net State Domestic Product (NSDP) of Gujarat‟s NSDP Gujarat was about US$ 61.1 billion in 2008-09. 2008-09 61.1 2007-08 64.1 • The average annual NSDP growth rate from 2006-07 52.1 1999-2000 to 2008-09 was about 13.3 per 2005-06 41.6 cent. 2004-05 34.3 CAGR 2003-04 32.6 13.3% 2002-03 25.9 2001-02 21.2 2000-01 19.1 1999-00 19.9
0.0 20.0 40.0 60.0 80.0
US$ billion
Source: CMIE
14 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Gujarat‟s economy has contributions from all three sectors
• In 2008-09 the secondary sector contributed Percentage distribution of GSDP 41.6 per cent to the state‟s GSDP at current CAGR prices. It was followed by the tertiary sector (38.4 per cent). 42.2 38.4 10.9%
• The share of the primary sector in GSDP was 12.8% 19.9 per cent in 2008-09 vis-à-vis 18.6 per cent 39.2 41.6 in 1999-2000, the increase being driven by the mining and quarrying and agriculture sub- 18.6 19.9 12.9% sectors. 1999-00 2008-09
• The mining and quarrying sub-sector registered Primary Sector Secondary Sector Tertiary Sector the highest growth of 14.0 per cent between 1999-2000 and 2008-09 followed by the Source: CMIE agriculture sub-sector at 13.3 per cent.
• The primary sector registered a growth rate of 12.9 per cent during 1999-2000 and 2008-09. It was followed by the secondary sector at 12.8 per cent and the tertiary sector at 10.9 per cent.
15 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Per capita GSDP
• In 2008-09, the state‟s per capita GSDP was US$ 1,283.7
• The per capita GSDP increased at a CAGR of 11.5 per cent between 1999-2000 and 2008-09.
Per capita GSDP
1,600.0 1,355.7 1,400.0 1,283.7 1,200.0 1,127.6 1,000.0 922.8 777.7 800.0 726.5
(US$) 596.0 600.0 480.6 458.6 500.9 400.0 200.0 0.0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Source: CMIE
16 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Employment distribution in Gujarat
• Manufacturing accounts for largest share (41 per cent) of employment across industries in Gujarat.
• The total employment in the public and private sectors has increased from 1.8 million in March 2008 to 1.9 million in March 2009.
• As of March 2009, the public sector establishments employed 0.8 million while the level was 1.1 million in the private sector.
• As of March 2009, the public sector employed 0.3 million women (14.7 per cent) while, the private sector employed 0.1 million (10.2 per cent). Employment by industry as of 2009 (Numbers)
Construction 0.1 Electric,Gas and water 0.1 Wholesale, retail trade and restaurants 0.1 Transport, storage and communication 0.1 Financing, insurance, real estate & business services 0.2 Community, service and personal services 0.6 Manufacturing 0.8
0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Source: “Socio-Economic Review Gujarat State 2009-2010”, million Directorate of Economics & Statistics 17 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Consumer expenditure on household goods and services
• Gujarat is ahead compared to all-India in share of per capita expenditure on food and durable goods.
Share of average monthly per capita expenditure on household goods and other services
50.0% Urban 60.0% 52.3% 39.6% 42.6% 53.9% Rural 40.0% 50.0%
30.0% 40.0% 30.0% 20.0% 20.0% 7.1% 3.7% 10.0% 5.5% 5.2% 4.7% 4.2% 5.0% 6.3% 3.6% 3.9% 10.0% 1.9% 3.6% 0.0% 0.0% Food Education Medical Durable Food Education Medical Durable goods goods
All-India Gujarat All-India Gujarat
Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round
18 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Brief profiles of key cities in Gujarat
The key cities in Gujarat are Gandhinagar, Ahmedabad, Bhavnagar, Jamnagar, Junagadh, Kutchh, Rajkot, Surat and Vadodara (Baroda).
• Gandhinagar, the state capital is named after „Mahatma Gandhi‟ and it is situated 32 km away from Ahmedabad. It is essentially the seat of the Government, but is transforming into a trade centre.
• Ahmedabad is the largest city and the commercial hub of the state. Traditionally, a textile industry centre of the country, the city is a also becoming a place for education, IT and scientific research industries.
• Bhavnagar is the sixth-largest city of Gujarat, and the third largest city in the Saurashtra region in terms of area. Bhavnagar is also known as the cultural capital of Saurashtra. It is also a trade centre for cotton goods.
• Surat is recognised globally for its textiles, chemicals and diamond industries. Around 92 per cent of the world‟s diamonds are cut and polished in Surat.
• Rajkot is a major tourist destination and a centre for arts. The city contributes to the state‟s economy with many heavy and small scale industries (SSI).
• Vadodara (Baroda) is the cultural capital of Gujarat. It also has several industries, particularly, related to the petroleum, fertiliser and energy sectors.
19 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Key industries in Gujarat … (1/2)
• Gujarat contributes 16 per cent to the industrial Key industries in Gujarat production of the country. • Agro and food processing • Dairy • There are12 major industry groups that together • Chemicals and petrochemicals account for 86 per cent of total factories, 96 per • Textiles and apparels cent of total fixed capital investment, 94 per cent of • Engineering and auto the value of output and 95 per cent of value- • Gems and jewellery addition in the state‟s industrial products. • Oil and gas • Pharmaceuticals and biotechnology • IT • Gujarat is a leader in several industrial sectors such • Minerals as chemicals, petrochemicals, drugs and • Ports pharmaceuticals, dairy, cement and ceramics, gems • Power and jewellery, textiles and engineering. • Tourism
Source: Government of Gujarat website • As of March 2009, the state has over 1,570 large units and more than 0.2 million micro, small and medium enterprises (MSMEs).
20 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Key industries in Gujarat … (2/2)
• Petroleum accounts for the highest industrial Share of industry sectors in Gujarat production in Gujarat with a 34 per cent share. It is followed by chemicals and pharmaceuticals with 2% Chemicals and pharma 27 per cent share. 6% Petroleum 6% 27% • Gujarat is: 7% Engineering Industries • The world‟s largest producer of processed Food Processing diamonds and wall clocks. 9% Textiles & Apparel • The world‟s largest gas-based, single-location 9% sponge iron plant. Metallurgical Industries 34% Mineral based • The world‟s largest producer of castor and industries cumin. Others
• The world‟s third largest producer of denim. Source: “Socio-Economic Review Gujarat State 2009-2010”, Directorate of Economics & Statistics
• The world‟s third largest grass root petroleum refinery (at Jamnagar).
• India‟s largest producer of cotton.
• Home to India‟s first liquefied natural gas (LNG) port terminal at Hazira.
21 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Agriculture and dairy
• Gujarat has a robust agricultural economy; the total crop area covers more than 50 per cent of the Annual production in Crop 2008-09 state‟s total land area. („000 tonnes)
• The top-ten crops account for over 96 per cent of Sugarcane 15,280.0 the total crop production of the state. Cotton 7,013.8 Wheat* 3,000.0 • In 2008-09, the total production of the major crops of the state was over 40 million tonnes. Of these, Onions 1,409.6 sugarcane was the major crop. It was followed by cotton, wheat and potatoes. Groundnuts* 1,440.0 Rice* 1,390.0 • The other major crops grown in the state include Potatoes 1,448.8 tobacco, coconuts, groundnuts, rice, jowar (sorghum), bajra (millets), oilseeds, maize, tur and gram. Bajra* 1,020.0 Maize 602.6 • Animal husbandry and dairying have a vital role in the rural economy of Gujarat. Gujarat has been a Rapeseed and mustard* 500.0 pioneer in cooperative dairy farming, with over a Castor* 490.0 million members, now. Coconuts 95.2
• Gujarat Co-operative Milk Marketing Federation (GCMMF) that markets milk products under the *As of 2007-08 well known “Amul” brand is the state‟s largest milk Source: CMIE producer and is based in Anand.
22 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Gujarat‟s exports
• Gujarat contributes 19.2 per cent to India‟s total exports of merchandised goods and services.
• Exports include products from sectors such as textiles, petroleum, chemicals, pharmaceuticals, engineering, and gems and jewellery.
• Export products from intermediate and minor ports include naphtha, petrol, clinker, cement, oil cakes, bauxite, paraxylene, salt, soda ash, food grains, cement clinker, ethylene, etc.
• The total cargo handled by the Kandla Port has increased from 64.9 million tonnes in the year 2007-08 to 72.3 million tonnes in the year 2008-09, showing an increase of 11.3 per cent over the previous year (including transhipment).
Sources: Industries Commissionerate, Gujarat Government, “Socio-Economic Review Gujarat State 2009-2010”, Directorate of Economics & Statistics
23 STATE ECONOMY AND SOCIO-ECONOMIC PROFILE Gujarat November 2010
Investments and FDI inflows
• As of March 2010, outstanding investments in the Breakup of investments by sector state were US$ 257.3 billion.
• Of the total investments, the electricity sector 13.5% accounted for over 38 per cent with investments Electricity worth US$ 98.7 billion followed by services and 6.3% chemicals. 38.4% Services 11.4% Chemicals • FDI inflows between April 2000 and May 2010 Construction were US$ 6.6 billion. Irrigation 12.2% Others 18.3%
Source: CMIE Others include food & beverages, textiles, non-metallic mineral products, metals & metal products and machinery
24 GUJARAT November 2010
Contents
Advantage Gujarat
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Gujarat
25 INFRASTRUCTURE STATUS Gujarat November 2010
Road network
• As of March 2009, the state had 19,163 km of Road map of Gujarat State Highways, 20,707 km of Major district roads, 10,503 km of Other district roads and 21,259 km of Village roads. National Highways
• About 38.2 per cent of total expressways and State Highways National Highways in the state are multi-lane; 87.9 percent of total roads are asphalt-surfaced. Railways In addition, there is 98.9 per cent rural connectivity through all-weather roads. It is among the highest in India.
• „PragatipathYojana‟, a State Government initiative Source: Gujarat State Road Development Corporation introduced in 2005, envisages the development Road Type Road length (km) of nine high-speed corridors and widening of highways to connect the tribal, coastal, industrial National Highways 3,245 and rural areas with mainstream areas. State Highways 19,163 Major district roads 20,707 Source: Ministry of Road Transport & Highways, Government of India, Other district roads 10,503 Gujarat State Road Development Corporation, Socio-Economic Review of Gujarat, 2009-2010 Village roads 21,259
Sources: Ministry of Road Transport & Highways, Annual Report 2008-09 and Industries Commissionerate, Government of Gujarat
26 INFRASTRUCTURE STATUS Gujarat November 2010
Ports … (1/3)
• The state has one of the strongest port infrastructures in Port infrastructure in Gujarat India. It is the first state in India to take up port privatisation.
• Gujarat has 42 ports along a 1,600 km coastline, including one major port at Kandla and 41 minor ports. Jakhau Kandla Mundra • The state has five direct berthing commercial ports, Navlakhi seven direct berthing captive port terminals and four Jamnagar Okha Khambhat Sikka lighterage-cargo ports. Positra Dholera Bhavnagar Mithivirdi Dahej • It handled the largest (79.8 per cent) share of cargo Porbandar Magdalla Mahuva traffic in India‟s minor and intermediate ports, and 11.5 Sutrapada Hazira per cent in India‟s major ports in 2008-09. Pipava Vansi Simar v Borsi Jafrabad • The state has two LNG terminals that offer Maroli transportation facilities for natural gas, crude oil and Major ports petroleum products from the Middle East and Europe. Private sector ports
• The state plans to have modern mechanised cargo GMB ports handling systems in all the new ports. Ten green field port projects as envisaged in the Port Policy, 2005, are now Source: “Ports of Gujarat” – sector profile 2008-09, Gujarat functional. Maritime Board (GMB)
27 INFRASTRUCTURE STATUS Gujarat November 2010
Ports … (2/3)
• The state has a vast hinterland comprising key Main ports of Gujarat Northern and central Indian states.
• It also has a large external trade potential given its vast coastline.
Kandla • The intermediate and minor ports of Gujarat Navlakhi handled a total cargo of 152.8 million tonnes Mundhra during 2008-09 showing an increase of about 4 Okha Jamnagar per cent compared to the previous year. Sikka Porbandhar • The total cargo handled by the Kandla Port has Dahej increased to 72.3 million tonnes during 2008-09 Hazira reflecting an increase of 11.3 per cent over the Magdalla previous year. Pipavav
Source: Socio-Economic Review of Gujarat, 2009-2010
28 INFRASTRUCTURE STATUS Gujarat November 2010
Ports … (3/3)
• Many upcoming ports are being developed as captive ports to cater to specific company and Key private sector stakeholders in industry requirements. Gujarat‟s ports sector Gujarat Adani Port Limited • The state undertakes fast-track clearance in Peninsular & Oriental Steam establishment of ports through private Navigation Company participation. Gujarat Pipavav Port Limited Reliance Industries Limited • There is an increase in connectivity to non- major ports owing to the development of the Maersk Delhi-Mumbai Dedicated Freight Corridor. Welspun Petronet LNG • More than 4,800 ships and 1,000 sailing vessels visit the ports of Gujarat every year. Shell
Source: “Ports of Gujarat”, sector profile 2008-09, Gujarat Government
29 INFRASTRUCTURE STATUS Gujarat November 2010
Airports
• The state has 13 domestic airports (the highest Airports in Gujarat in any state) and one international airport at Ahmedabad.
• The SardarVallabhai Patel International Airport in Mehsana Ahmedabad is India‟s eighth-busiest airport with Bhuj an average of 150 aircraft movements a day. The airport is under renovation and once work is Kandla Ahmedabad complete, the number of parking bays will increase from 15 to 45 and both the Zalawad international and domestic terminals will have Jamnagar Vadodara four aero-bridges each. Porbandhar Rajkot
• In addition, there are domestic airports at Bhavnagar, Bhuj, Jamnagar, Kandla, Keshod, Junagadh Bhavnagar Surat Junagadh, Porbandar, Rajkot, Surat, Vadodara, Zalawad and Mehsana. Keshod
• A feasibility study for an international airport at Fedra in Dholera (about 130 km away from Ahmedabad) has been completed in January 2010. Once ready, the airport could be useful for International Airport both passenger and cargo purposes. Domestic Airport
30 INFRASTRUCTURE STATUS Gujarat November 2010
Railways
• The state had a railway network of 5,309 km as of Key railway stations in Gujarat 2009. It comprises 3,100 km of broad gauge, 1,422 km of metre gauge and 787 km of narrow gauge.
• There are 21 major railway stations in Gujarat. The important stations are Ahmedabad, Anand, Bhuj Bhavnagar, Bhuj, Godhra, Porbandhar, Rajkot, Vadodara (Baroda) and Valsad. Godhra Ahmedabad
Anand
Rajkot Vadodara
Porbandhar Bhavnagar Valsad
Source: Maps of India
31 INFRASTRUCTURE STATUS Gujarat November 2010
Power and gas … (1/2)
• As of March 2010, Gujarat had a total installed Installed power capacity (MW) power generation capacity of 13,908.1 MW, which 16,000.0 comprised 5,901.9 MW under state utilities, 13,908.1 14,000.0 5,513.7 MW under private utilities and 2,492.5 12,110.4 under central utilities. 12,000.0 10,490.8 11,052.0 10,000.0 9,291.0 • The installed power capacity in the state increased from 9,291.1 MW in 2005-06 to 8,000.0 13,908.1 MW in 2009-2010. 6,000.0 4,000.0 • There are 29 power stations supplying power to 2,000.0 Gujarat, of which 24 are located in the state and - five are located outside the state. 2005-06 2006-07 2007-08 2008-09 2009-10
• Over 18,000 villages are supplied with 24-hour, three-phase electricity under the „Jyotirgram Source: Central Electricity Authority Yojana‟.
• Gujarat State Petroleum Corporation‟s (GSPC) gas company supplies piped natural gas (PNG) to nearly 59,709 domestic households, 370 commercial establishments and 551 industrial customers.
32 INFRASTRUCTURE STATUS Gujarat November 2010
Power and gas … (2/2)
• GSPC has holdings in over 42 oil and gas fields Integrated gas grid for energy security across India, in addition to exploration blocks in Australia, Egypt and Yemen.
• GSPC is known for its discovery of the largest gas reserve in India at the Krishna-Godavari Basin. Mehsana Kalol • Gujarat has a 2,200 km integrated gas-grid that is Mundra Ahmedabad operated on an open access, common carrier principle. Gandhar Dholera Palej Ankleshwar Bharuch Integrated gas-grid Dahej
Current transmission 25 mmscmd* Hazira Pipavav Total length 2,200 km Completed 1,420 km
Under construction 450 km Commissioned Existing LNG terminal Planned expansion 330 km Under construction Proposed LNG terminal Tendering Oil & gas reserves Sources: “Beyond State Boundaries”, Government of Gujarat 2008-09; mmscmd: million metric standard cubic metres per day ; *includes 10 mmscmd of re-gassified LNG
33 INFRASTRUCTURE STATUS Gujarat November 2010
Telecom and IT … (1/2)
• The state had 26.2 million GSM cellular Telecom infrastructure as of 2009 subscribers and 787,710 internet/broadband GSM cellular subscribers: 26,160,079* subscribers in 2009. Internet/broadband subscribers: 787,710* • According to estimates by Telecom Regulatory Wireless connections: 32,349,149** Authority of India (TRAI), there were 32.4 Wire-line connections: 2,081,793** million wireless connections and 2.1 million Post offices: 8,972 wire-line connections in Gujarat as of March 2010. The state had a a tele-density of 58.5. Telephone exchanges: 3,226 Sources: Telecom Regulatory Authority of India, Ministry of • All district headquarters are provided with back- Communications & Information Technology, Socio-Economic up support of transportable V-SAT terminals. Review of Gujarat, 2009-2010 *As of June 2010
• The state also has the State Disaster Resource **As of March 2010 Network (SDRN), a database of disaster management related inventory. Telecom operators in Gujarat • Vodafone Essar
• The Bhaskaracharya Institute for Space • IDEA Cellular Applications and Geoinformatics (BISAG) has satellite communication facilities with a • Bharti Airtel dedicated bandwidth. • BSNL • Reliance Communications
Source: Cellular Operators Association of India 34 INFRASTRUCTURE STATUS Gujarat November 2010
Telecom and IT … (2/2)
• Gujarat State Wide Area Network (GSWAN), Gujarat State Wide Area Network (GSWAN) world‟s second largest IP-based WAN connecting over 2,800 government offices.
• The state has the Secretariat Integrated Communication Network (SICN) with over 7,500 voice connections.
• There is facility for online redressing of citizen‟s grievances through the State Wide Grievance Attention [service on public] Grievances [by application of] Technology (SWAGAT).
• Integrated Workflow and Document Management System (IWDMS) streamlines documentation in government offices.
35 INFRASTRUCTURE STATUS Gujarat November 2010
Urban Infrastructure – water
State-wide water grid • As of 2009,1,874 km bulk pipelines and about 100,000 km of distribution pipelines have been laid across the state.
• Of the state‟s18,594 villages, the water grid connects almost 9,600 villages.
• As of 2009, there are over 14,000 Pani Samitis (water committees). • Water conservation schemes include: • 118,000 check dams • 55,900 bori bandhs (dams made of sand bags) • Interlinking of 21 rivers in central and North Gujarat through „Sujalam Sufalam Yojana‟. • 18,000 deepened ponds.
• The Gujarat Water Users‟ Participatory Surface water 38,100 mcm* Irrigation Management Bill, 2007, authorises farmers to constitute Water Users‟ Associations Ground water 12,000 mcm (WUA) for the management of canals handed over, after rehabilitation by the Government. Total 50,100 mcm * million cubic metres Source: “Beyond State Boundaries”, Government of Gujarat, 2008-09 36 INFRASTRUCTURE STATUS Gujarat November 2010
Clean transport initiative through CNG and BRTS
• The state envisages replacement of conventional fuels Ahmedabad BRTS map by compressed natural gas (CNG) in all buses and auto rickshaws.
• 141 CNG stations already established. In Ahmedabad, CNG auto rickshaws have been made mandatory.
• There are1,181 CNG buses of Gujarat State Road Transport Corporation (GSRTC), 3,750 CNG private buses, 114,446 CNG auto rickshaws and 50,708 cars that run on CNG.
• The bus rapid transport system (BRTS) is being implemented jointly by the State Government, Gujarat Infrastructure Development Board (GIDB), Ahmedabad Municipal Corporation (AMC) and Ahmedabad Urban Development Authority (AUDA).
• Approved length: 88.5 km (Phase-I: 58 km + Phase-II: 30.5 km). Phase-I is already in operation. The entire project is to be completed by December 2010.
Source: “Beyond State Boundaries”, Government of Gujarat, 2008-09
37 INFRASTRUCTURE STATUS Gujarat November 2010
Other initiatives in urban infrastructure
River-front development JNNURM
• Development around the rivers Sabarmati and • Under the Jawaharlal Nehru National Urban Tapi have been undertaken to revitalise the city Renewal Mission (JNNURM), 70 projects and improve existing infrastructure. costing US$ 1.2 billion have been sanctioned for Gujarat. • It also envisages development of commercial, residential and recreational facilities on the river- • The projects have been sanctioned for front. completion between 2005-06 and 2009-2010. The key areas of development are water • The Sabarmati River Front Development supply, sewerage, solid-waste management, Corporation honoured with the Prime Minister‟s storm-water drainage, mass-rapid transport Award for Excellence in Urban Planning and system, construction of flyovers and water Design. treatment.
• The GIDB has been constituted for conceiving Other reforms infrastructure projects, developing and preparing them. GIDB also conducts pre- • Municipal accounting feasibility and feasibility studies for various projects. • Solid-waste management
• Energy efficiency
38 INFRASTRUCTURE STATUS Gujarat November 2010
Key public private partnership (PPP) projects
Project cost Project name Sector PPP type Stage (US$ million) Hazira LNG terminal Ports BOOT 806.5 In operation Dahej LNG terminal Ports BOOT 497.2 In operation Mundra port Ports BOOT 467.6 In operation Himmatnagar bypass Roads BOT-Toll 152.2 In operation Gandhidham-Palanpur railway project Railways BOT-Toll 108.7 In operation International Airport-Ahmedabad-Dholera Aviation - 543.1 In pipeline Surendranagar-Pipapav railway project Railways BOT-Toll 88.0 In pipeline Bhavnagar-Trapaj and Budhel-Vartej road project Roads BOT 50 In pipeline
Transport Nagar at Bhavnagar Roads BOT 10.9 In pipeline Dahej-Bharuch gauge conversion Railways BOT-Toll 42.8 In pipeline Kutch RO-RO terminal project Ports BOOT 20.6 In pipeline Vadodara-Halol Toll road Roads BOT-Toll 38.0 In pipeline
Source: pppindiadatabase.com; BOOT – Build-Own-Operate-Transfer; BOT – Build-Operate-Transfer; RO-RO: roll-on roll-off
39 INFRASTRUCTURE STATUS Gujarat November 2010
Education sector … (1/2)
• „Kanya Kelavani‟ is a state-wide girl child education campaign to increase enrolment ratio and Gujarat‟s school education statistics as of 2008-09 decrease drop-out rates: Primary: 45,012 • It covers 28,346 primary schools. Number of schools Secondary: 8,000 • It has resulted in increase in net-enrolment Higher: 915 ratio from 75 per cent to 98.98 per cent. • Total number of students enrolled in 2008 All schools: 32 was 7.7 million, of which 3.5 million were Pupil-teacher ratio Primary: 32 girls. Upper primary: 33 • Around 33,410 girls have benefited from this fund. Primary: 86.0 Net enrolment ratio Upper primary: 41.9 • „Vidya LaxmiYojana‟ has been implemented to achieve 100 per cent enrolment and retention of Number of Teachers 238,030 girls in primary schools: • Around 750,000 girls have been given the Source: National University of Educational Planning and Vidya Laxmi Bond between 2003-04 and Administration, DISE, 2008-09 2009-2010.
• „VidhyadeepYojna‟ has been implemented where Literacy rates (%) in case of an unfortunate death of a child studying Literacy rate 69.1 in the school, the parents or the guardians of the child are offered US$ 500 as an insurance amount. Male literacy 79.7 About 8.5 million students are insured under this Female literacy 57.8 scheme. Source: Census of India, 2001
40 INFRASTRUCTURE STATUS Gujarat November 2010
Education sector … (2/2)
• „Sakshardeep‟ is a literacy campaign for adult Premier educational and research institutions in Gujarat education, under which 1.27 million adults had been educated until 2006. • Indian Institute of Management, Ahmedabad • National Institute of Technology, Surat • Indian Institute of Technology, Gandhinagar • Society for Creating of Opportunity through Proficiency in English (SCOPE) is an initiative of • Sardar Vallabhbhai National Institute of Technology, Surat the Government to make Gujarati youth • Institute of Rural Management (IRMA), Anand proficient in business English. • Mudra Institute of Communication, Ahmedabad (MICA) • National Institute of Fashion Technology (NIFT), Gandhinagar Educational infrastructure as of 2009 • National Institute of Design, Ahmedabad • Universities: 29 • Centre for Environment Planning and Technology, • Medical colleges: 13 Ahmedabad • Engineering : 54 • Central Salt and Marine Chemicals Research Institute, • Diploma colleges: 57 Bhavnagar
Source: Gujarat Government
41 INFRASTRUCTURE STATUS Gujarat November 2010
Health infrastructure
• The state has 1,084 primary health centres Key health schemes of Gujarat Government (PHC), 7,274 sub-centres, 282 community health centres (CHC) and 85 mobile healthcare units. Chiranjeevi scheme • Introduced to reduce maternity-related deaths and infant Health infrastructure as of 2009 mortality; involves collaborations between government and private sector specialists to facilitate safe deliveries • Primary health centres: 1,084 for the economically weaker sections. • Sub-centres: 7,274 Bal Sakha Yojna • Community health centres: 282 • Mobile care units: 85 • An initiative under the Chiranjeevi scheme. • Provided facilities for proper check up of newborns and • District hospitals: 23 infants by paediatricians. The main aim of the scheme is to • Referral hospitals: 409 bring down the Infant Mortality Rate (IMR) and the • Rural dispensaries: 8,347 Maternal Mortality Rate (MMR). • Ayurvedic hospitals: 48 Centre-aided health insurance scheme • Ayurvedic dispensaries: 493 • The scheme has been launched in five districts in Gujarat and covers about 500,000 person with incomes-level in Health indicators as of 2008 the below poverty line (BPL) category. Birth rate (per 1,000 population)** 22.6 • Total insured amount is about US$ 650 per family. Death rate 6.9 (per thousand persons)** Infant mortality rate 50 (per thousand live births)**
Source: Ministry of Health and Family Welfare, Sample Registration System, 2008, Socio-Economic Review of Gujarat, 2009-2010 42 INFRASTRUCTURE STATUS Gujarat November 2010
Cultural infrastructure
• Various dance forms of the state include dandiya raas, garba, garbi, rasaka, tippani and padhar.
• Many fairs and festivals are celebrated in the state such as Bhavnath mahadev mela, Dangs darbar, Vichitra mela, Dhrang fair, Trinetreshwar mahadev fair, Vautha mela, Shamlaji mela, Kutch mahotsav, Bhadra purnima, Kavant mela, Modhera (dance festival), Makar sankranthi, International kite festival (Uttarayan) and navrathri festival.
• Museums in the state include The Gandhi Smarak Sangrahalaya (Ahmedabad), Calico musuem of textiles (Ahmedabad), Vadodara museum (Vadodara), Maharaja Fatehsingh museum (Vadodara), Gandhi Museum (Bhavnagar), Kite museum (Ahmedabad), Watson museum (Rajkot) and the Lady Wilson museum (Valsad).
• Prominent stadiums in the state include the Sardar Patel cricket stadium (Ahmedabad), Moti Bagh stadium (Vadodara), Indian Petrochemicals Corporation Ltd (IPCL) sports complex (Vadodara) and the Surat indoor stadium. Golf courses in the state include Gaekwad Baroda golf club (Vadodara), Gulmohar Greens golf & country club (Ahmedabad), Aalloa Hills golf resort (Ahmedabad), Kensville golf and country club (Ahemdabad), Cambay golf club (Gandhinagar), and an integrated golf course in Ganesh Housing Corporation (Ahmedabad).
• A world-class sporting infrastructure complex is coming up in Ahmedabad in 2011 at a cost of US$ 65 million. The facility which will incorporate a 25,000 seat stadium, is a collaboration between the Government of Gujarat and SE TransStadia Private Limited.
43 INFRASTRUCTURE STATUS Gujarat November 2010
Industrial clusters … (1/2)
• The state‟s manufacturing industry is supported Number of clusters as per industry type by 0.2 million MSMEs.
• Gujarat has 83 product clusters. The Cluster 17 Development Scheme has been launched for Engineering furthering the growth of product clusters. 30 Textiles Food Processing 6 • Successful clusters include ceramics cluster at Chemicals Morbi, brass- parts cluster at Jamnagar, fish- 7 Minerals processing cluster at Veraval and power-looms Others cluster at Ahmedabad. 10 13
44 INFRASTRUCTURE STATUS Gujarat November 2010
Industrial clusters … (2/2)
• Gujarat has 202 industrial estates established by the Product clusters Gujarat Industrial Development Corporation (GIDC) for specific sectors such as chemicals, electronics, gems, apparels and granite. Agro Processing Soda ash and salt-based industries, cement and steel pipes Mehsana • The State Government has taken care to set up Kachch industrial estates on non-agricultural land after KANDLA Engineering andGandhinagar ceramics Ahmedabad assessment of industrial viability. Morbi MUNDRA Chemicals, Okha Petrochemicals, Surendranagar Pharma, Textiles Anand Rajkot Petroleum and brass Vadodara parts Jamnagar DAHEJ Ankleshwar Amreli Bhavnagar Soda ash and salt- Surat based industries Sutrapada HAZIRA Navsari Kodinar PIPAVAV Valsad
Source: Industries Commissionerate, Government of Gujarat
45 INFRASTRUCTURE STATUS Gujarat November 2010
Special economic zones
• As of July 2010, Gujarat had 47 formally Key sector-wise break up of SEZs approved SEZs, 13 in-principle approvals and 30 notified SEZs. Multiproduct/Multiservices 1 8 Electronics/IT/ITES 13 • Gujarat ranks first in terms of total area covered under SEZs in India. It is also a leading SEZ state Textiles and apparels 9 with the highest geographical area of 27,125 Pharma/Chemicals hectares under SEZ development. Engineering
Gujarat‟s three operational SEZs are: 8 17 Port based multiproduct • Kandla SEZ 4 SEZs Others • SIR SEZ • Surat Apparel Park
• It is the first state to formulate an SEZ policy, Source: Vibrant Gujarat 2009 summit which includes flexible labour laws and exit options for investors.
• SEZs in Gujarat get a 10-year corporate tax holiday on export profit: 100 per cent for the initial five years and 50 per cent for the next five years.
46 INFRASTRUCTURE STATUS Gujarat November 2010
Key investment regions in Gujarat … (1/2)
• The area under the Delhi-Mumbai Industrial Corridor DMIC region (DMIC) falling in Gujarat includes: Uttaranchal • 62 per cent of total area (18 districts out of 26) Haryana • 74 per cent of population (37 million). Dadri Uttar Rajasthan • Gujarat‟s share of the Delhi-Mumbai dedicated freight Pradesh corridor (DFC) of 1,500 km is 38 per cent (564 km). The state‟s regions falling in this corridor are:
• The Ahmedabad-Dholera investment region Gujarat Madhya Pradesh
• The Vadodara-Ankleshwar industrial area Arabian Sea Maharashtra • The Palanpur-Mehsana industrial area J.N.Port
• The Bharuch-Dahej investment region End Terminals DFC Alignment • The Surat-Navsari investment area
• The Valsad-Umbergaon industrial area
47 INFRASTRUCTURE STATUS Gujarat November 2010
Key investment regions in Gujarat … (2/2)
• Other regions include the Gujarat International Other investment regions in Gujarat Finance-Tec City (GIFT), a collaboration between • Petroleum, Chemicals and Petrochemicals Gujarat Urban Development Company Limited Investment Region (PCPIR), Dahej (GUDC) and Infrastructure Leasing and Financial Services Co Ltd (IL&FS). It is being developed as a • Special Investment Region (SIR), Dholera. central finance and business district. Source: Industries Commissionerate, Gujarat Government
48 INFRASTRUCTURE STATUS Gujarat November 2010
Major investments in the infrastructure sector
• As of March 2010, over US$ 43.2 billion of Investments Infrastructure type investments have been made for ramping up (US$ million) Gujarat‟s infrastructure Power* 22,784.9
• Over 53 percent of infrastructure-related Shipping 10,742.1 investments have been made in the area of Roads 3,557.9 power generation and distribution. Railways 2,661.9
• Apart from power, shipping, roads and railways Airports 1,773.8 are the other key infrastructure sectors attracting investments. *Generation and distribution Source: CMIE
49 GUJARAT November 2010
Contents
Advantage Gujarat
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Gujarat
50 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (1/14)
Gujarat Industrial Policy, 2009 Vision: To facilitate investments in the state, generate employment and adhere to high quality standards Key initiatives and objectives: • Creation of opportunities for vigorous industrial and economic activities in the declared backward talukas.
• Special investment regions: Convergence of industrial, social and urban infrastructure. Leverage the Delhi-Mumbai Industrial Corridor (DMIC) and the influence area in Gujarat.
• To promote and facilitate mega projects in the critical sectors to generate a multiplier-effect of employment creation and inclusive development in the state.
• Promotion of cluster development to ensure competitiveness and improvement of MSMEs.
• Promotion of industries such as textiles and apparels, agri-business, fisheries, gems and jewellery, IT/ITeS, ports and related industries by providing adequate thrust to the sector by way of developing specific package, which would make it an important catalyst for industrial and economic development of the state.
• To ensure that the state has a strong information dissemination system and the administration is industry-friendly in terms of quick responses to queries, application clearances, zero red-tape, availability of adequate land for facilitating industrial development, etc.
• To provide financial assistance for infrastructure development to new industrial estates in the focus sectors.
• Provide efficient logistics services for industrial growth.
• To augment the power requirement of the state.
• Enhancement of technical competence and manpower.
• Reward for adoption of new technologies, business sophistication and innovation. 51 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (2/14) Gujarat Industrial Policy, 2009 (continued) Incentives and concessions: • In the focus sectors such as textiles and apparels, gems and jewellery, innovative projects, mega projects, informal sector, agri-business, fisheries, IT/ knowledge-based industries, port and related industries and power sector (non-conventional energy): Units having investment of US$ 217 million and employment of 2,000 will be defined as mega units. Whereas in core infrastructure sector, the units having investment of US$ 217 million will be treated as mega units.
• In the eventuality of mega projects requiring support of ancillary units and if the same is to be extended by small and medium enterprises (SMEs), then for setting up such units, GIDC would identify land and the incentives that are otherwise extended to the SME sector would be applicable to these ancillary units also.
• Financial assistance for IT units: • Special incentives for mega IT/ITeS projects (investment above US$ 10 million) creating employment above a minimum threshold level.
• All new IT units are exempted from payment of electricity duty for a period of five years and exemption from power cuts.
• Stamp duty exemption to units in IT parks and IT SEZs.
• Financial assistance to hire experts in the areas of technology, marketing and finance for sick-units.
• Financial assistance for SMEs: • For participation in international trade fairs, State Government will partially defray the costs of rent, literature and display materials.
• For industrial associations participating in international trade fairs, the Government will provide financial support.
• Venture capital funding for projects adopting innovative technology.
• Credit-linked financial support by way of interest subsidy to spinning, weaving, knitting, apparel and machine carpeting. 52 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (3/14)
Gujarat Industrial Policy, 2009 (continued) Other incentives and concessions: • In the fisheries sector, incentives would be provided to trawlers that go for deep-sea fishing, beyond 100 meters depth contour.
• Cold storage plants would be set up on a large scale. For setting up such plants, GIDC can facilitate in identifying suitable land.
• Incentives for corporations, municipalities, women's groups and cooperatives to construct hygienic fish markets.
• The State Government intends to provide incentives for investments, which are directed towards enhancing the manpower skill levels and ensuring that the talent pool available in the state is in line with the industry requirements.
53 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (4/14)
Power Generation Policy of Gujarat, 2009 Aim: To develop the state of Gujarat as a power-generation hub.
Key initiatives: • To have adequate availability of power in the state for agriculture, households, industry and commerce.
• To ensure effective and efficient use of conventional fuels by the power-generation industry.
• To build power-generation capacity to encourage competition for procurement of electricity by state utility/distribution licenses.
• To encourage environment friendly and efficient power-generation technologies.
• The State Government to facilitate and assist project developers in identifying suitable locations, obtaining clearances, fuel linkage, port linkage and water supply.
• The State Government to facilitate the clearances and approvals for connecting the power plant to the grid sub-stations
• When the developer has arranged its own fuel without recommendation of the State Government, the Government shall have the right to purchase power from the power project, up to 10 per cent of installed capacity.
• Nominated agency of Government of Gujarat shall have the first right and not obligation for purchase of surplus power of SEZ. This provision shall be applicable to power station located in SEZ area having installed capacity up to 1,000 MW and in case the installed capacity is over 1,000 MW then also this provision shall apply up to 1,000 MW capacity only.
• When surplus power is available for shorter duration of one year or a lesser period, the nominated agency of Government may purchase such surplus power on short-term basis, on the mutually negotiated prices.
• When surplus power is available for longer duration of more than one year, the nominated agency shall have the first right and not obligation to purchase power through the competitive bidding process.
54 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (5/14)
Solar Power Policy of Gujarat, 2009 Aim: To promote power generation of green and clean power in the state using solar energy.
Key initiatives: • To put in place appropriate investment climate, that could leverage the clean development mechanism (CDM).
• Productive use of wastelands, thereby bringing in a socio-economic transformation.
• Promote R&D and facilitation of technology transfer.
• Establish core technical competence in professionals of the state to initiate and sustain the use and effective management of new applications.
Incentives and concessions: • Solar Power generators (SPGs) installed and commissioned up to March 31, 2014 shall be eligible for incentives.
• Electricity generated from the SPGs and used for self consumption or sale to third party or licensees shall be exempted from payment of electricity duty.
• Exemption from demand cut to the extent of 50 per cent of the installed capacity of SPGs, assigned for captive use purpose.
• Electricity generated from a solar power project, shall be sold to the distribution licensees in the state at levelised fixed-tariff per unit.
55 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (6/14)
Gujarat State Tourism Policy, 2003-2010 Aim: To undertake intensive development of tourism in the state and thereby increase employment opportunities. Key initiatives: • Special emphasis on event (festival) based tourism.
• Identifying and developing tourist destinations.
• Creating adequate facilities for budget tourists.
• Strengthening tourism-related infrastructure with the opening of new centres.
• Promoting projects in the areas of accommodation, eateries, entertainment, services, etc.
• Promoting tourism in the areas of religious and archaeology, heritage, wild life, coastal and beach, traditional art and craft, and adventure tourism.
• Creating entertainment theme parks to be considered as “Special Entertainment Zones”.
• Encouraging medical tourism.
• Provide for avenues to attract tourists who are interested in eco-tourism.
• Tourism sector has been identified as one with the highest employment potential industry with around 90 jobs created per US$ 2,000 of investment.
• Possible tourism products such as religious (pilgrimage), archaeology, heritage, wildlife, coastal and beach, traditional art and crafts, culture, corporate, adventure, and highway tourism to be conceived.
56 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (7/14)
Gujarat IT Policy, 2006-11 Aim: Overall growth of IT sector in Gujarat. Key initiatives: • Creating significant employment opportunities by training and developing skilled manpower.
• Facilitating information outlets at the doorstep of a common man.
• Making the government-citizen interface more effective, efficient and transparent.
• For imparting education, the Gujarat Institute of Information Technology is being set up at Gandhinagar.
• Setting up a high-tech Infocity with facilities of satellite earth station in Gandhinagar and hubs at Ahmedabad and Baroda.
• Plans to spend 1 per cent of the annual state budget on IT-related activities; to be progressively raised to 3 per cent.
• State to facilitate granting of SEZ status to IT industry and IT parks subject to the provision of the SEZ Act and rules.
57 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (8/14)
Gujarat IT Policy, 2006-11 (continued) Incentives and concessions: • Capital subsidy at a rate of 25 per cent for the new-IT units on total eligible capital investment.
• IT units would be eligible to a turnover incentive at a rate of 5 per cent of the eligible annual turnover with a ceiling of US$ 100,000.
• Incidence of sales tax on computer hardware, peripherals, etc., would be reduced.
• A special connectivity incentive to be given where the Government would subsidise leased-line rental up to 500 km to an extent of 50 per cent of the lease-rentals.
• Special incentives for mega-IT projects creating employment for more than 1,000 persons for an IT unit and 1,500 persons for a ITeS unit.
• Financial assistance at the rate of 50 per cent of fixed capital investment in land, buildings and infrastructure facilities to IT park developers up to a maximum of US$ 510 billion.
• Stamp duty exemption on purchase of land for IT park developers.
• State Government would set up venture capital fund for development of IT services, IT software and IT products.
• This fund would seek support from national fund for IT-ventures development as proposed by the National Task Force.
58 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (9/14)
Gujarat Port Policy, 2005 Aim: To promote Gujarat‟s share in ports. Key initiatives: • The port policy seeks to enhance Gujarat‟s share in the national export-import sector.
• It also seeks to decongest existing ports on the western coast through efficient services to support domestic and international trade.
• Providing port facilities to promote export-oriented and port-based industries.
• Encouraging shipbuilding, ship-repairing and manufacturing facilities for cranes, dredgers and floating crafts.
• Promoting coastal shipping for passengers and cargo traffic between various locations within and outside Gujarat.
• Supporting power plants by offering exclusive facilities for import of fuels.
• Encouraging private sector investment in minor and intermediate ports as well as new port locations.
• Providing port facilities to promote export-oriented industries and port-based industries entailing almost 50 per cent of total industrial investment.
• Development of new port sites.
• Privatisation of services such as lighterage, dredging, piloting, tug-towing and other essential utilities.
59 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (10/14)
Gujarat State Mineral Policy, 2003 Aim: To explore opportunities in the mineral resources of the state. Key initiatives: • Invite participation from the private sector for mining and exploration.
• Prioritise exploration of lignite to meet the state‟s power demand and the fuel requirement of industries.
• Creation of a databank by compiling geological and technical details of state and central government agencies in geological survey and mineral exploration.
• Implement environment assessment norms that would be constantly monitored for major minerals resources on lease.
• Promote the use of modern technology in mining.
• To enhance the skills of miners, labourers and technicians working in the mines of minor and major minerals, training programmes for mine-safety improvement, maintenance of ecological equilibrium and prevention of mine wastage to be conducted in country's well-known institutes.
60 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (11/14)
SEZ Policy of Gujarat, 2002 Aim: To bring more investment and export oriented units in the state.
Salient features: • SEZs would be declared as industrial townships (notified area) in the state and they would be managed by a development commissioner.
• Power supply can be provided by independent power producers/distributors in the SEZ with permission of SEZ authority.
• SEZ units will be exempted from electricity duty for period of 10 years from the date of production and rendering of the services.
• SEZ units are allowed to set up their own captive power plants.
• The SEZ Authority would establish grid connectivity to ensure uninterrupted power supply in case of power failure.
• Eighty industries have been exempted from obtaining „No Objection Certificate‟ by the Gujarat Pollution Control Board.
• All environment related clearance applications would have to be submitted only to the Development Commissioner of SEZ.
• SEZ units would be required to file consolidated annual report on several laws relating to labour, wages and compensation to the development commissioner.
• Units in SEZ would be declared as "Public Utility Services" under the Industrial Disputes Act.
• Tax incentives: exemption on stamp duty and registration charges on loan agreements, credit deeds, mortgages and transfer of land in SEZ for industrial purpose.
• Transactions within SEZ would be exempted from all sales taxes of State Government including VAT and purchase tax.
• Good and services transacted from domestic tariff area to SEZ would be exempted from sales and other state taxes but would be taxed if transacted from SEZ to domestic area.
• SEZ developer would be granted permission to develop water supply and distribution system for constituent units.
61 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (12/14)
Gujarat Road Policy Aim: To facilitate investments in the road sector.
Key objectives and initiatives: • First state in India to have a law governing build-own-transfer (BOT) transactions.
• Provide connectivity to all villages by building all-weather roads to improve quality of life in rural areas.
• Develop an efficient road system to ensure smooth and uninterrupted flow of goods and passenger traffic.
• Constantly upgrade technology by deploying superior and quicker construction, and maintenance methods.
• Induct scientific principles of resource allocation for maintenance and new construction programmes.
• Set high standards for road safety and the travel comfort of passengers.
62 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (13/14) Gujarat Agro Industrial Policy, 2000 Aim: To make Gujarat the destination of choice for investors and processors, both global and domestic.
Key initiatives: • Creation of a world class supply-chain
• Promotion of infrastructure important for agro industry development
• Close interface between research, industry and farmers in the agri-sector
• Providing assistance to small-scale agro based units to improve their competitiveness in global markets and increase exports of value-added agri-products.
• The policy to be implemented by the Gujarat Agro Industries Corporation Limited, the nodal agency to promote and develop agro and food processing industry in Gujarat. Fiscal Incentives: • Tiny, small, medium and large agro industrial units are given 6 per cent back-ended subsidy for five years on the interest on term loan, subject to a ceiling of US$ 200,000.
• Agri-infrastructure projects to be given 6 per cent back-ended subsidy for five years on the interest on term loan, subject to a ceiling of US$ 900,000.
• Individuals/institutions to be reimbursed 50 per cent expenditure of the cost of preparation of a project report for setting up an agro-industrial unit, subject to a ceiling of US$ 10,000.
• Specific crop-development institutes/centre of excellence to be given 50 per cent of the initial capital investment as assistance, subject to a ceiling of US$ 10,000.
• Small scale and tiny agro industrial units to be given assistance up to 50 per cent of the cost incurred for obtaining quality certification mark from an institute recognised by the State Government or Central Government, subject to a ceiling of US$ 10,000.
• Private, government or cooperative sector units to be reimbursed up to 50 per cent of the cost of patent registration, subject to a ceiling of US$ 10,000. 63 STATE POLICIES AND INCENTIVES Gujarat November 2010
Sector-specific policies … (14/14)
Gujarat Agro Industrial Policy, 2000 (continued) • A subsidy of 25 per cent to be provided on air freight for exports of edible products; 50 per cent subsidy to be provided on the actual cost of sending samples and the cost of getting samples passed for export of edible agro items, subject to a ceiling of US$ 1,087.
• A subsidy of 50 per cent subsidy to be provided on the cost of special research for improvement in quality of agriculture produce, undertaken in research and development centre established by any institute or industrial enterprise, subject to a ceiling of US$ 40,000.
• The State Government through Gujarat Agro Industries Corporation shall undertake equity participation ranging from 11 per cent to 26 per cent of promoter‟s contribution in select projects to facilitate private sector investments.
• The State Government to provide government land, including agriculture farms, on long lease basis at concession rates to agro industries and agri-infrastructure projects including centres of excellence.
• The State Government to create a venture fund for agro industries in association with financial institutions and banks.
• Incentives to be given to new units as well as existing units undertaking technology up-gradation, modernisation, expansion or diversification.
• Interest subsidy to be granted towards interest on term loan from nationalised banks and financial institutions recognised by the Reserve Bank of India.
64 GUJARAT November 2010
Contents
Advantage Gujarat
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Gujarat
Company logos cited in this section are registered trade marks of the respective companies
65 BUSINESS OPPORTUNITIES Gujarat November 2010
Agro and food processing
• The agro sector including animal husbandry, contributed 15 per cent to Gujarat‟s GSDP in Key Players 2008-09. • Amul • Adani Food Products • Godrej Agrovet • Cotton, Groundnut, Bajra, Paddy, Maize, Jowar, • McCain Foods Sesamum, Castor, and Tur (Pigeon pea) along with • Parle fodder and vegetables are the major kharif crops • Ramdev Food Products Pvt Ltd of the state. Normal area under kharif cultivation • Rasna is 0.9 million hectares. • Vadilal • Vimal Agro Products Private Limited
• In 2009, the state‟s marketing network consisted of 207 market committees, 195 main yards and Source: Socio-Economic Review of Gujarat, 206 sub-market yards. 2009-2010
• Gujarat Agro Industries Corporation (GAIC) promotes agricultural activities at the ground-level and aids the development of agro industries in the state
66 BUSINESS OPPORTUNITIES Gujarat November 2010
Agro and food processing – the dairy industry
• Gujarat‟s dairy sector consists of 13 district milk Key districts in the dairy sector producers‟ unions.
• It has a network of 12,991 milk cooperative societies with 2.5 million members as of 2009. Gandhinagar
• The total milk production in Gujarat was 8.4 million Ahmedabad tonnes in 2008-09. Anand
• The National Dairy Development Board in Anand is involved in promoting, financing and supporting milk- distribution organisations across India.
• GCMMF, a cooperative dairy giant, sells Amul and Sagar brands of dairy products through 500,000 unorganised Sources: “Estimates of milk production”, National Dairy retailers and 3,000 distributors. Development Board
• GCMMF registered a turnover of US$ 1.1 billion in 2006-07 to become the first billion-dollar cooperative in India. GCMMF recorded a turnover of US$ 1.7 billion in 2009-2010.
67 BUSINESS OPPORTUNITIES Gujarat November 2010
Agro and food processing – company profiles … (1/4)
Amul • The Anand Milk Union Limited (AMUL) was established in 1956 in Anand, Gujarat.
• Amul had revenues of US4 1.4 billion during 2009-2010.
• A market leader in butter, whole-milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long-life milk.
• Daily average collection of 8.4 million litres of milk from 13,328 village societies in 2008-09. Adani Food • Manufacturers and exports spices (ground, blended, whole) and pickles. Products • The company is a star-export house certified by the Directorate General Of Foreign Trade (DGFT).
• Head office at Rajkot and factory at Metoda (near Rajkot).
68 BUSINESS OPPORTUNITIES Gujarat November 2010
Agro and food processing – company profiles … (2/4)
Godrej Agrovet • GAVL, part of the Godrej Group of Industries, is a diversified agribusiness company with interests in (GAVL) animal feed, oil palm plantations, agrochemicals and poultry. • GAVL has 45 manufacturing facilities across India, a network of 10,000 rural distributors/dealers and over 1,900 employees.
• GAVL covers 35,000 hectares of palm plantations in Tamil Nadu, Andhra Pradesh, Goa, Karnataka, Orissa, Gujarat and Mizoram.
• Has a plant at Valia in Gujarat. McCain Foods • Privately-owned, multinational leader in the frozen food industry with a revenue of US$ 7 billion in 2009.
• World's largest producer of french fries and potato specialties; food products include appetizers, pizzas, vegetables, desserts and other frozen foods
• Over 55 production facilities spread across six continents, supported by over 20,000 employees.
• Aims to promote contract farming and buys potatoes from over 100 farmers, spread over Anand, Borsad, Palanpur and Deesa in Gujarat
• 2,000 acres of drip irrigation, introduced by McCain in Gujarat for potato farming. Manufacturing facility at Mehsana.
69 BUSINESS OPPORTUNITIES Gujarat November 2010
Agro and food processing – company profiles … (3/4)
Parle • India's largest manufacturer of biscuits, confectionary and fruit juices, for almost 80 years. Revenue of US$ 0.9 million in 2009-2010.
• Brands include Parle-G, Krackjack, Monaco, Hide and Seek, Poppins, Melody and Mango Bite.
• Confectionary factory at Surendranagar, franchisee (Bailey) factory at Ahmedabad. Ramdev Food Products • Established in 1965 at Ahmedabad. Products include powder spices, whole spices and snacks. Pvt Ltd • A government-recognised export house with an international network in 10 countries.
• Cleaning and processing capacity of more than 60,000 kg per day. Rasna • Started in 1984. Had 93 per cent market-share in Indian soft-drink concentrate market in 2009.
• Wide range of products in processed-foods category such as fruit jams, energy sports drink powder, fruit cordial, rose syrup and ice-tea.
• Largest capacity in Asia to make powder concentrate with seven facilities spread across India.
• Based in Ahmedabad.
70 BUSINESS OPPORTUNITIES Gujarat November 2010
Agro and food processing – company profiles … (4/4)
Vadilal • Established in 1907 at Ahmedabad. Manufactures ice-creams and frozen desserts.
• Exports processed products.
• Revenue of US$ 35 million in 2009-2010.
• Two manufacturing plants at Gujarat (in Ahmedabad and at Pundhra in Gandhinagar district). Vimal Agro Products • Set up in 1975 at Bardoli in Gujarat. Private Limited • The company manufactures and exports over 80 different food products ranging from canned vegetables, fruit pulp and slices, pickles, chutney, papads and ready-to-eat foods.
• The company has also entered the processed, cleaned and packed pulses, rice and fruit juices market.
71 BUSINESS OPPORTUNITIES Gujarat November 2010
Textiles and apparel … (1/2)
• In 2008-09, Gujarat was the highest exporter of Key Players cotton in India with 60 per cent exports. It was also the highest contributor of man-made fibre • Alok Industries • Arvind Mills (31 per cent) and man-made filament yarn (38 • Ashima Group per cent) in the country. • Chiripal Group • Digjam • The state contributed 12 per cent to national • Indian Rayon textile exports in 2008-09. • Dinesh Mills • Garden Silk Mills Limited • Ginni Filaments • Gujarat Ambuja Exports Limited • Jindal Worldwide Limited • Mafatlal Industries Limited • Indian Rayon • Raymond • Reliance Industries Limited • Vardhman Group
72 BUSINESS OPPORTUNITIES Gujarat November 2010
Textiles and apparel … (2/2)
• Over 40 per cent of the country‟s art-silk fabric Area Textile clusters is produced in Surat. Gujarat is the largest Cotton and blended fabric, denim, producer of denim in India (65 to 70 per cent) Ahmedabad made-ups, ladies dresses, textile and the third-largest in the world. machinery and spare parts. Art-silk fabric, synthetic textiles, jari • Textiles account for 21 per cent of total Surat manufacturing, embroidery, textile employment in the state. In 2008-09, the state machinery and spare parts. Modern power looms, synthetic suiting Umargam contributed 33 per cent of mill-made fabric and and shirting. 25 per cent power-loom fabric to the total Jetpur Hand printing and processing units. fabric produced in the country. Manavadar Cotton ginning Kutch Textile handicrafts
73 BUSINESS OPPORTUNITIES Gujarat November 2010
Textiles and apparel industry – company profiles … (1/4)
Alok Industries • Fully integrated textile company established in 1986.
• Over the years, the company has expanded into weaving, knitting and processing of home textiles and garments.
• The company has entered the domestic retail segment through a wholly-owned subsidiary, Alok Retail India Limited.
• Manufacturing units for processing and manufacturing made-ups and terry towel at Valsad. Arvind Mills • One of the top-three producers of denim in the world and largest producer in Asia.
• Product line includes fabrics (denims, shirtings, khakis and knitwear) and garments.
• Asia‟s first fabric-manufacturing unit to receive an ISO-14001certification.
• Has the denim and voiles divisions at Ahmedabad; shirting, khakhi and knits divisions at Gandhinagar. Ashima Group • 100 per cent cotton-fabric manufacturers and a vertically-integrated group with a turnover of over US$ 135 million during 2009.
• Registered office at Ahmedabad.
• Exports fabric to over 45 countries, markets to over 150 Indian garment exporters. Chiripal Group • Established in 1972. Business areas include textiles, petrochemicals, chemicals and auxiliaries, education and infrastructure.
• Corporate office at Ahmedabad, textile and petrochemical units at Ahmedabad. Digjam • Part of the S.K. Birla Group, the company was established in Jamnagar, Gujarat in 1949.
• The company manufactures fabrics for suiting and casual wear.
• It has restructured its business portfolios to focus on textile manufacturing and marketing of fabrics and ready-to-wear clothing under its own brands.
74 BUSINESS OPPORTUNITIES Gujarat November 2010
Textiles and apparel industry – company profiles … (2/4)
Dinesh Mills • Composite textile mill manufacturing menswear, women‟s wear and kids wear.
• Manufacturing units in Gujarat at Vadodara (Baroda) and Ankleshwar.
• Exporting to countries such as the US, Canada, Australia, Europe, Middle-East and Far-East. Garden Silk Mills • The company is a part of the Garden Vareli Group. Incorporated in 1979. Revenue of over US$ 360 Limited million in 2009-2010. • Produces polyester chips/melt, polyster filament yarn and fabric.
• Two plants at Jolwa and Vareli in Surat. Ginni Filaments • Leading integrated manufacturer of cotton yarn, processed knit fabrics and non woven spun-lace fabric.
• Established in 1990.
• Gujarat unit at Panoli industrial estate with a capacity of 12,000 million tonnes per annum (MTPA).
75 BUSINESS OPPORTUNITIES Gujarat November 2010
Textiles and apparel industry – company profiles … (3/4)
Gujarat Ambuja • The company is in the business of exporting cotton yarn to over 40 countries for last 12 years. Exports Limited • The company also operates in other segments such as solvent extraction, edible oil, vanaspati ghee, maize processing and flour mills.
• Corporate office at Ahmedabad. Cotton yarn spinning mill at Himatnagar in Gujarat.
• The company is setting up a green field project costing US$ 23 million with 30,000 spindles of cotton adjacent to the Himatnagar mill. Jindal Worldwide • Established in 1976. Limited • Jindal began fabric-trading and steadily expanded into weaving, processing and home textiles.
• The group is a government-recognized export house.
• Corporate office and plant at Ahmedabad. Mafatlal Industries • Established in 1905. Limited (MIL) • Main businesses include textiles, garments, apparel, rubber chemicals, specialty chemicals and finance.
• MIL produces a range of products in 100 per cent cotton, polyester/cotton, polyester/viscose and polyester wool blends. The total capacity of the two mills, located at Navsari (near Surat) and Nadiad (near Ahmedabad) is 25 million meters per annum (85,000 meters per day).
76 BUSINESS OPPORTUNITIES Gujarat November 2010
Textiles and apparel industry – company profiles … (4/4)
Indian Rayon • Part of the Aditya Birla group of companies.
• Indian Rayon, the viscose filament yarn unit of Aditya Birla Nuvo, is a major player in the Indian viscose filament yarn business.
• The unit has a 30 per cent domestic-market share, making it the second largest producer of viscose filament yarn in India.
• Plant located at Veraval (Gujarat). Raymond • With over 60 per cent market share in India, Raymond is one of the largest integrated manufacturers of worsted fabric in the world. The group is into textiles, engineering and aviation.
• Raymond Apparel Limited is a 100 per cent subsidiary of Raymond Limited.
• The plant at Vapi in Gujarat has production of 14 million metres per annum. Reliance Industries • India‟s largest private sector company. Features on the Fortune Global 500 list of „World‟s Largest Limited Corporations‟. • Product lines include synthetic textiles, fabrics, fibre intermediates, plastics, polyester, chemicals and petrochemicals. Textile manufacturing unit at Naroda (Ahmedabad). Flagship brand “Vimal”.
• Annual revenue of over US$ 45 billion in 2009-2010.
• New product initiatives include fresca anti-microbial and anti-bacterial work-wear apparel fabrics, home furnishing, auto textiles, silk-amino suiting fabrics, fire-retardant fabrics and insect repellent nets. Vardhman Group • Established in 1965, the company is a leading textile conglomerate in India with turnover of above US$ 702 million in 2009-2010.
• Spanning over 24 manufacturing facilities in five states across India, the group‟s business portfolio includes yarn, greige and processed fabric, sewing thread, acrylic fibre and alloy steel.
• Fibre manufacturing unit of Vardhman Acrylic Limited is at Jhagaria (Gujarat) with a production capacity of 18,000 MTPA.
77 BUSINESS OPPORTUNITIES Gujarat November 2010
Chemicals and petrochemicals
• Gujarat contributed about 52 per cent to the Key Players national production of chemicals in 2008-09. • Asian Paints • BASF • It is the highest contributor to the total national • DCW production of petrochemical products. • Tata Chemicals • Sintex Industries Limited • Gujarat Alkalies and Chemicals Limited • Gujarat‟s contribution in the national production • Gujarat Heavy Chemicals Limited of the following is: • Nirma Chemicals • Excel Industries • Soda ash: about 100 per cent • Reliance Industries Limited • United Phosphorous Limited • Salt: 85 per cent • Meghmani Organics Limited • Polymers: 56 per cent • Gujarat State Fertilisers and Chemicals Limited • Ethylene: 50 per cent • Gujarat Narmada Valley Fertilisers Company Limited
• In 2009, the state had 3,800 factories Source: Gujarat official website manufacturing chemical products and employing more than 165,000 persons.
• The State Government is developing the petroleum, chemicals and petrochemicals integrated region (PCPIR) at Dahej.
78 BUSINESS OPPORTUNITIES Gujarat November 2010
Chemicals and petrochemicals industry – company profiles … (1/3)
Asian Paints • It is India‟s largest paint company and ranks among the top ten decorative-coatings companies in the world.
• Asian Paints along with its subsidiaries has operations in 18 countries across the world and 26 paint manufacturing facilities.
• Manufacturing facility at Ankleshwar in Gujarat. BASF • Established in 1943. The BASF group in India consists of BASF India Limited, BASF Coatings, BASF Styrenics Limited, and BASF Polyurethenes India Limited.
• BASF is engaged in the production of chemicals, tanning agents and coatings.
• Production facility of BASF Styrenics Limited, is at Dahej in Gujarat. DCW • Diversified manufacturer of basic chemicals such as caustic soda, chlorine-based products, soda ash, polyvinyl chloride resin, iron oxide and bromine.
• Had a turnover of US$ 210 million in 2009-2010.
• Company‟s first plant was established in 1925 at Dharangadhra (Surendranagar in Gujarat). Tata Chemicals • TCL is a global company with interests in chemicals, crop nutrition and consumer products. It is the Limited (TCL) world's second largest producer of soda-ash. • Established in 1939 at Mithapur in Gujarat, TCL is a part of the Tata group. The plant has an installed capacity of 875,000 tonnes per annum; about 34 per cent of the country's capacity. The plant is one of the largest producers of synthetic soda ash in the world and has a five-star rating from the British Safety Council. Sintex Industries • Established in 1931. One of the leading providers of plastics and niche textile-related products in India. Limited • The group has 36 manufacturing plants in India and overseas, spread over nine countries and four continents. Has its head office at Kalol in North Gujarat.
79 BUSINESS OPPORTUNITIES Gujarat November 2010
Chemicals and petrochemicals industry – company profiles … (2/3)
Gujarat Alkalies and • GACL is the single largest producer of Caustic Soda in India, with a production capacity of 1087 tonnes per day (TPD). Other products include caustic potash, sodium, hydrogen peroxide, Chemicals Limited phosphoric acid and chloromethane.
• Spread over two complexes at Vadodara (Baroda) and Dahej.
• Revenue of US$ 302 million in 2009-2010. Gujarat Heavy • GHCL India was commissioned in 1988. The company manufactures soda ash. Chemicals • The plant has a production capacity of 850,000 MTPA and is located along the coastline of Limited (GHCL) Saurashtra Region, within Gujarat. • Had a turnover of US$ 287 million in 2009-2010. Nirma Chemicals • Part of the Nirma Group of companies. Products of the company include detergents, soaps, chemicals and allied products.
• Chemical division manufactures chemicals such as sulphuric acid, linear alkyl benzene, alfa olefin solphonate, glycerin, single super phosphate and sodium silicate.
• Plant located at Alindra near Baroda. Excel Industries • Established in 1941, the company manufactures agro-chemicals, water treatment chemicals and polymer additives.
• Plants in Gujarat at Piplaj and Ahmedabad.
• Turnover of US$ 58 million in 2009-2010. Reliance Industries • India‟s largest private sector company and features on the “Fortune Global 500” list of „World‟s Largest Corporations‟. Limited • Product lines include synthetic textiles, fabrics, fibre intermediates, plastics, polyester, chemicals and petrochemicals. Petrochemicals division manufactures polymers, polyesters, polyester intermediaries and other petrochemicals.
• Manufacturing facilities at Hazira, Vadodara and Gandhar in Gujarat.
80 BUSINESS OPPORTUNITIES Gujarat November 2010
Chemicals and petrochemicals industry – company profiles … (3/3)
United Phosphorous Limited • Incorporated in 1969, UPL is a global generic-crop protection, chemicals and seeds (UPL) company. • UPL has 21 manufacturing sites (nine in India, four in France, two in Spain, one each in UK, Vietnam, Argentina ,Netherlands, Italy and China).
• Four manufacturing facilities in Gujarat, at Jhagadia, Halol, Ankleshwar and Vapi.
Meghmani Organics Limited • Manufacturers of pigments and pesticides. More than 80 per cent of the company‟s pigment products and over 50 per cent of pesticides products are exported the world over. Had revenue of US$ 130 million in 2008-09.
• Company has four production facilities at Vatva, Chharodi, Panoli and Ankleshwar in Gujarat.
Gujarat State Fertilisers and • Established in 1962. Chemicals Limited • Fertiliser plant at Fertiliser Nagar (Vadodara), fibre unit at Kosamba, di-ammonia phosphate (DAP) fertiliser unit at Sikka and polymer unit at Nandeseri.
• Had revenue of US$ 1.3 billion in 2008-09.
Gujarat Narmada Valley • GNFC is a joint sector enterprise promoted by the Government of Gujarat and the Fertilisers Company Limited Gujarat State Fertilizer Company Limited (GSFC). (GNFC) • Set up in Bharuch, Gujarat in 1976.
• Manufactures fertilisers and chemicals.
81 BUSINESS OPPORTUNITIES Gujarat November 2010
Engineering and automotive … (1/3)
• The state‟s engineering and automotive sectors Share of Gujarat in national engineering sector output contribute 8 per cent to India‟s total industrial 10.8% 11.1% production and over 9 per cent to the national engineering output. 8.3%
6.2% • The state‟s engineering and automotive sectors have an average annual growth rate of 15 per cent. 3.7%
• The sector comprises more than 600 medium and large sector units, and over 75,000 small- scale units. Autombile Electricals Metallurgical Fabrication Machinery Share (%) of engineering sector in Gujarat‟s industry • The state has 30 engineering product clusters. Factory (nos.) 29.0
Employment 23.6
Fixed capital investment 7.2
Value of output 10.1
Value added 12.7
Source: “Engineering & Auto”, sector profile 2009-2010, Government of Gujarat 82 BUSINESS OPPORTUNITIES Gujarat November 2010
Engineering and automotive … (2/3)
• Small-scale industry is a significant contributor to Key Players the national production of brass parts, foundry, forging and machine tools, oil engines and electric • ABB motors, submersible pumps and industrial valves • Apollo Tyres • Bosch India and bearings. • Bombardier Transportation India • Larsen & Toubro (L&T) • The brass parts cluster at Jamnagar has over 5,000 • Videocon Limited small units and meets almost the entire • Panasonic Energy India Company Limited requirement for brass parts in India. • Munjal Auto India Limited • Alstom • Linde Engineering • General Motors has set up its automotive • Steelco Gujarat manufacturing facilities in Gujarat, providing a boost • Birla Copper to its auto ancillary industry. • Atul Auto Limited • Tata Motors Limited • Ingersoll Rand • Hitachi • General Motors • Matsushita
83 BUSINESS OPPORTUNITIES Gujarat November 2010
Engineering and automotive … (3/3)
Key engineering clusters
Foundry and forgings Steel pipes and tubes Steel re-rolled products Brass parts Fabricated metal products Steel and aluminium furniture
Electric motors Power driven pumps Textile machinery parts Chemical machinery parts Food processing machinery Machine tools Diesel engine and parts Ball and roller bearings Automobile and auto parts
84 BUSINESS OPPORTUNITIES Gujarat November 2010
Engineering and automotive industry – company profiles … (1/6)
ABB • Incorporated in 1949. The company manufactures cables and cable accessories, control systems, power products, semiconductors, reactors, drives, generator circuit breakers and insulation components.
• Caters to over 20 industry groups.
• Manufacturing facility, training and operations centre located in Gujarat at Vadodara (Baroda); branch office at Ahmedabad.
• Had revenue of US$ 32 billion in the year ended December 31, 2009. Apollo Tyres • The company is a leading tyre manufacturer in India. It caters to passenger cars, sports utility vehicles, commercial vehicles, agriculture and off-the-road vehicles.
• The company has a plant at Limda in Gujarat manufacturing 400,000 tyres per month. This plant is the company‟s flagship and the largest . A manufacturing facility for extra-large-off-the-road tyres was inaugurated in November 2009 at the Limda plant.
• Company had a revenue of US$ 500 million in 2009-2010. Bosch India • The Bosch Group is one of the world‟s biggest private industrial corporations, headquartered in Germany. In India, Bosch is a leading supplier of technology and services; operates six companies.
• Products and services include automotive technology, industrial technology, consumer goods and building technology and engineering and IT services.
• Bosch set up its manufacturing operations in 1953 in India, and has grown over the years to 14 manufacturing sites and three development centres.
• Bosch Rexroth India Limited is headquartered in Ahmedabad. Bombardier • Present in India since 35 years and headquartered in Canada. Transportation • Business activities include rail transportation equipment, systems and services, regional and business India aircraft; leading supplier of motor vehicles worldwide. • Among the first private companies to build rail vehicles in India.
• Production facility located in Vadodara (Baroda).
85 BUSINESS OPPORTUNITIES Gujarat November 2010
Engineering and automotive industry – company profiles … (2/6)
Larsen & Toubro (L&T) • L&T is a technology, IT, engineering, construction and manufacturing company. • The Engineering Construction and Contracts (ECC) division of L&T is India‟s largest construction organisation in the country. Has a regional office at Ahmedabad.
• The company is setting up power and manufacturing plants at Hazira and Vadodara, to be complete by 2011-12. Has an investment of US$ 1 billion and expected to provide employment to 5,000 persons.
Videocon Limited • The Videocon group is a US$ 2.5 billion global conglomerate.
• The company manufactures consumer electronics, home appliances and compressors in India.
• One of its units is located in Bharuch.
Welspun India Limited • Welspun is present in over 50 countries. Business activities include home textiles, saw-pipes and steel, specialty texturised polyester yarn, bathrobes and retail.
• Welspun-Rohren is among the largest saw pipe manufacturers in Asia.
• In 2009, Welspun India Limited demerged into two companies; Welspun Global Brands (marketing, sales, distribution) and Welspun Investments Limited.
• Two manufacturing plants for home textiles are located at Anjar (Kutch district) and Vapi (Valsad district). Panasonic Energy India • Company incorporated in 1972 in Vadodara. It is in the business of manufacturing and selling batteries, battery appliances and components. Company Limited • Has two manufacturing facilities in India: one at Vadodara in Gujarat and another in Madhya Pradesh. Munjal Auto India • MAIL is an auto component manufacturing company producing exhaust systems, wheel rims and automotive assemblies. Limited (MAIL) • MAIL is part of the Hero Group of companies and was established in 1987.
• The company has three manufacturing units, of which one is at Vadodara.
86 BUSINESS OPPORTUNITIES Gujarat November 2010
Engineering and automotive industry – company profiles … (3/6)
Alstom • The company's activities in India include power generation, power service and rail transport.
• Headquartered in France and with a presence in 70 countries, employing 80,000 people worldwide.
• Alstom Projects India Limited is headquartered in New Delhi and has facilities in Durgapur (utility boilers manufacturing facility), Coimbatore (transport manufacturing facility), Bengaluru (transport sector software development centre), Kolkata (power service and environmental control system), Shahabad (boiler and foundry products manufacturing facility) and Vadodara (hydro business manufacturing facility).
• Contract with Gujarat State Electricity Corporation Limited (GSECL) for construction of the first Alstom GT26-based combined cycle power plant in India, as an extension of the existing power plant at Utran (Surat). Also has supply contracts in the Northeast Indian power projects. Linde Engineering • Leading industrial gas and engineering company with over 53,000 employees working in 70 countries.
• Constituent companies are Linde Gas and Linde Engineering.
• Linde designs and builds turnkey process plants for industrial users and applications; Linde Engineering has operations in Vadodara (Baroda).
87 BUSINESS OPPORTUNITIES Gujarat November 2010
Engineering and automotive industry – company profiles … (4/6)
Steelco Gujarat • Has been manufacturing cold-rolled steel products since 1994.
• Plant at Bharuch district in Gujarat with a capacity of 230,000 MTPA.
• Branch office located in Vadodara (Baroda). Birla Copper • Birla Copper is a unit of Hindalco Industries.
• It has set up a mega greenfield copper-smelting and refining complex at Dahej in the Bharuch district at an investment of US$ 500 million.
• Hindalco Industries Limited, is a flagship company of Aditya Birla group. Atul Auto Limited • The company is a Gujarat-based leading manufacturer of three-wheeled commercial vehicles.
• The company is part of the US$ 30 million Atul Group of companies.
• Head office at Rajkot and factory at Shapar near Rajkot.
88 BUSINESS OPPORTUNITIES Gujarat November 2010
Engineering and automotive industry – company profiles … (5/6)
Tata Motors • Established in 1945, Tata Motors Limited is India's largest automobile company, with consolidated revenue of US$ 8.1 billion in 2009-2010. Tata Motors is the first company from India's engineering sector to be Limited listed on the New York Stock Exchange.
• Products include passenger cars, utility vehicles, trucks, commercial passenger vehicles and defence vehicles. Mother plant of „Nano‟ is located at Sanand in Gujarat. Ingersoll Rand • Ingersoll Rand is a US$ 13 billion global diversified industrial company and is present in India since 1921. The company focuses on the major global markets of climate control, industrial technology, infrastructure development, safety and security.
• The company has a ISO 9001 certified plant at Naroda, near Ahmedabad. This facility caters to a major chunk of the global demand for air-cooled reciprocating air compressors. Hitachi • A multinational corporation specialising in high-technology and services founded in 1910 in Japan.
• Hitachi Home and Life (India) is the Indian subsidiary, founded in 1984 for manufacturing consumer durables.
• In Gujarat, Hitachi has two air conditioner manufacturing plants at Kadi. It is the largest air conditioner manufacturing facility in India.
89 BUSINESS OPPORTUNITIES Gujarat November 2010
Engineering and automotive industry – company profiles … (6/6)
General Motors • Founded in 1908, GM is among the world‟s largest automobile makers.
• Headquartered in Detroit (USA), GM manufactures cars and trucks in 32 countries and has sales in 200 countries. It has been an industry sales leader for 78 years and employs 324,000 people around the world.
• General Motors India, incorporated in 1994, became a fully-owned subsidiary of GM in 1999. Has a 45,000 sq m plant at Halol (Panchmahal) in Gujarat and produces brands such as the Chevrolet (Optra and Tavera) and Opel (Corsa and Sail). Matsushita • It is the largest Japanese electronics producer. Products include audiovisual and information/ communication equipment and home appliances.
• Among the first companies to establish a business unit in Gujarat in 1972 through a joint venture with the Indian company, Lakhanpal.
• Manufacturing unit located at Vadodara where it manufactures dry cell batteries.
90 BUSINESS OPPORTUNITIES Gujarat November 2010
Gems and jewellery
• Gujarat accounts for 72 per cent of the world‟s share of processed diamonds and 80 per cent of total diamonds processed in India.
• Contributes 90 per cent of total diamonds processed in India in 10,000 units in Surat.
• Eight out of 10 diamonds in the world are polished in Surat.
• The state has the highest labour productivity in the jewellery sector in India.
• It is also internationally renowned for the production of unique hand-made silver ornaments (85 per cent of total silver jewellery production of India).
• Renowned institutions such as the Indian Diamond Institute, Gujarat Hira Bourse, and the Gems and Jewellery Export Promotion Council provide skilled manpower for the industry.
91 BUSINESS OPPORTUNITIES Gujarat November 2010
Oil and gas
• Gujarat ranks first in the production of crude oil Location Oil and gas companies (onshore: 55.1per cent) and natural gas (onshore: 32.3 per cent) in India. Jamnagar Reliance Industries refinery: third- largest in the world; Essar Refinery • The state has the highest number of oil and gas fields, both onshore and offshore, in India (31.3 per cent). Dahej Petronet LNG‟s re-gasification terminal
• Nearly 36.6 per cent of India‟s installed refining Hazira Shell and Total‟s LNG terminal capacity is in the state of Gujarat. Vadodara Indian Oil Corporation‟s refinery Gandhar ONGC‟s gas processing complex • Oil and gas reserves are located at Ankleshwar, Mehsana, Tapti High, Hazira, Bharuch, Gandhar, Dahej, Jambusar, Palej and Kalol. Isolated gas fields are Key Players located around Ahmedabad. • Adani Group • British Gas • Gujarat has a 2,200 km state-wide integrated gas grid. • Cairn India It also has two LNG terminals at Hazira and Dahej. • Essar Oil • GAIL (India) Limited Two more terminals are proposed to be set up at • IOCL Pipavav and Mundra. • ONGC • Reliance Industries • Shell • Gujarat Gas Company Limited • Petronet LNG Limited • Hazira LNG and Port Companies
92 BUSINESS OPPORTUNITIES Gujarat November 2010
Oil and gas industry – company profiles … (1/4)
Adani Group • Established in 1988, Adani is among the large trading houses in India.
• It is a leading trader in coal, wheat, castor oil, petroleum, business process outsourcing (BPO), power trading, iron-ore and pulses.
• It is involved in development of the Mundra port, the second private port in Gujarat
• Adani has developed a natural gas distribution network.
• Has also established India‟s largest edible oil refinery in the state. Cairn India • The company operates the largest producing oil fields in the Indian private sector.
• Cairn India holds material exploration and production positions in 13 blocks across India along with new exploration rights elsewhere in India and Sri Lanka.
• Cairn has a 40 per cent share in the Cambay oil field; ONGC holds 50 per cent and Tata Petrodyne 10 per cent.
• It is building a 670 km long, heated and insulated crude oil pipeline from the Mangala Processing Terminal in Rajasthan to the Gujarat coast. When complete, the pipeline will give access to more than 75 per cent of India‟s refining capacity. The first phase is targeted for completion by the end of 2010. Essar Oil • Part of the Essar group, a multinational conglomerate in sectors like steel, oil & power, communications, shipping ports & logistics, construction and minerals with a turnover of US$ 15 million.
• Essar oil‟s assets include developmental rights in proven exploration blocks, a 10.5 MTPA refinery in Vadinar, Gujarat and over 1,300 branded oil retail outlets in India. The company plans to expand its refinery capacity to 36 MTPA and open 3,000 outlets countrywide.
• The company has an exploration and production block in Mehsana, Gujarat
93 BUSINESS OPPORTUNITIES Gujarat November 2010
Oil and gas industry – company profiles … (2/4)
GAIL (India) Limited • GAIL is India's flagship natural gas company, integrating all aspects of the natural gas value-chain of exploration, production, processing, transmission, distribution and marketing and related services.
• Had a turnover of US$ 5.5 billion in 2009-2010.
• GAIL supplies gas to Gujarat Gas Company Limited.
• GAIL has an office in Ahmedabad and a CNG refuelling station in Vadodara. Indian Oil • IOCL is India's largest integrated oil refining and marketing company by sales, with a turnover of Corporation Limited US$ 58 billion in 2009-2010. It is the 18th largest petroleum company in the world. (IOCL) • It owns and operates 10 of India‟s 19 refineries; as of 2008-09, the company had a refining capacity of 60.2 MTPA (1.3 million barrels per day).
• The refinery at Koyali in Gujarat is IOCL‟s largest with a capacity is 12.5 million metric tonnes per annum (MMTPA). ONGC • ONGC is India‟s leading exploration and production company for oil and gas.
• It has 240 onshore production installations, 70 drilling rigs and 15,800 km pipeline network.
• ONGC has a plant at Hazira; assets in Mehsana, Ahmedabad and Ankleshwar; the Institute of Reservoir Studies (IRS) at Ahmedabad ; and regional office at Baroda.
94 BUSINESS OPPORTUNITIES Gujarat November 2010
Oil and gas industry – company profiles … (3/4)
Reliance Industries • RIL is India‟s largest private sector company and features on the “Fortune Global 500” list of „World‟s Limited (RIL) Largest Corporations‟. • It has three manufacturing facilities in Gujarat at Naroda, Jamnagar and Hazira.
• The Jamnagar refinery is the largest grass-root refinery in the world.
• Product lines include synthetic textiles, fabrics, fibre intermediates, plastics, polyester, chemicals , petrochemicals and retail outlets for petro-fuel products. Shell • Shell is among the global leaders in oil, gas and petrochemicals sector, with interests in bio-fuels, wind, solar power and hydrogen.
• Operates in over 100 countries, employing over 102,000 people worldwide.
• It is a large and diversified international investor in India‟s energy sector.
• It is the only global major to operate petro-fuel retail outlets in India.
• The Hazira LNG Terminal and port project is Shell‟s largest venture in India.
95 BUSINESS OPPORTUNITIES Gujarat November 2010
Oil and gas industry – company profiles … (4/4)
Gujarat Gas • Established in 1980, GGCL is India‟s largest private sector player in the natural gas transmission and distribution business. Company Limited (GGCL) • The corporate office is in Ahmedabad and its area of operations is spread across various districts of Gujarat such as Surat, Bharuch and Valsad.
• The company has been part of the British Gas group since 1997. BG group has a 65.12 per cent controlling stake in GGCL. Petronet LNG • Formed as a joint venture by the Government of India to import liquefied natural gas (LNG) and set up LNG terminals in the country, Petronet LNG is a consortium of India's leading oil and natural gas industry Limited players.
• The company‟s promoters are GAIL (India) Limited (GAIL), Oil & Natural Gas Corporation Limited (ONGC), Indian Oil Corporation Limited (IOCL) and Bharat Petroleum Corporation Limited (BPCL).
• Petronet has set up its first LNG terminal at Dahej in Gujarat, with a capacity of 5 MMTPA, and is in the process of setting up another terminal at Kochi in Kerala, with a capacity of 2.5 MMTPA. Hazira LNG and • Shell Gas B.V holds 74 per cent of the equity in the Hazira companies, while Total Gaz Electricité France holds 26 per cent. Port Companies • The Hazira LNG terminal has been established in Hazira (Surat district) with an investment of US$ 650 million. The capacity is 5 MTPA; initial throughput capacity of 2.5 MTPA.
96 BUSINESS OPPORTUNITIES Gujarat November 2010
Pharmaceuticals and biotechnology … (1/2)
• Gujarat accounted for 47 per cent of the national pharmaceutical production in 2008-09 and 22 per cent of exports. Ahmedabad cluster • The state accounts for 90 per cent of intravenous sets manufactured in the country. Gandhinagar Surendranagar Ahmedabad Baroda cluster • It is home to more than 902 allopathic manufacturing units and 2,122 contract Rajkot manufacturing units. Ankleshwar Junagadh cluster Surat • It has the largest number of clinical research Bharuch and Vapi/Valsad organisations in India and over 100 companies cluster with WHO-compliant manufacturing units.
• Gujarat has a considerable presence in homoeopathic medicine with 7,500 practitioners, Manufacturing 216 government dispensaries and 15 colleges. Academic institution R&D organisation • A pharma special economic zone (PhaEZ) is being established by Cadilla Pharma near Ahmedabad with about 30 units and an investment of US$ 650 million.
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Pharmaceuticals and biotechnology … (2/2)
Location Biotech zones (Proposed)
Ahmedabad-Surendranagar Biopharma zone Key Players Jamnagar-Dwarka-Porbandhar Marine Biotech park Food and food processing for • Sun Pharma Vadodara-Anand-Nadiad animal biotechnology • Bayer Cropscience Biochemical engineering for • Cadilla Pharmaceuticals Vapi-Surat-Bharuch-Ankleshwar industrial biotechnology • Concord Biotech Junagadh-Bhavnagar-Banaskantha- • Indus Biotheraupatics Agri biotechnology Mehsana • Novartis-Chiron • Quintles • Span Diagnostics • Sterling Gelatin India Location Biotech zones (Proposed) • Torrent Gujarat Biotech Limited Vadodara Industrial Park • Zydus Cadilla Anand Food Biotechnology park • Aarti Drugs Limited Jamnagar/Bhavnagar Marine Biotechnology park Gandhinagar/Mehsana Agri Biotechnology park Vadodara Industrial Park
98 BUSINESS OPPORTUNITIES Gujarat November 2010
Pharmaceuticals and biotechnology – company profiles … (1/4)
Sun Pharma • Sun Pharma was established in 1983. It manufactures active pharmaceutical ingredients (APIs) and specialty pharmaceuticals.
• The company has 17 manufacturing plants in three continents and reported revenues of US$ 843.9 during 2009-2010.
• Sun Pharmaceutical Advanced Research Centre (SPAC) is situated in Vadodara (Baroda). Manufacturing plants in Gujarat are located at Vapi, Halol, Ankleshwar, Ahmednagar and Vadodara. Bayer Cropscience • Bayer is a global enterprise with core competencies in the fields of healthcare, nutrition and high- tech materials.
• In India, Bayer operates five companies including Bayer Cropscience, which offers a range of products and service back-up for modern agriculture and non-agricultural applications.
• The company has three business groups: crop protection, environmental science and bio-science.
• It has two factories in Gujarat, at Ankleshwar and Himatnagar.
99 BUSINESS OPPORTUNITIES Gujarat November 2010
Pharmaceuticals and biotechnology – company profiles … (2/4)
Cadila • Cadilla is headquartered at Ahmedabad. It has been in operation for over five decades. Pharmaceuticals • The company has been developing and manufacturing pharmaceutical products, which it sells and distributes over 50 countries around the world.
• Has a manufacturing plant at Dholka (Ahmedabad), chemical strategic business unit at Ankleshwar and tissue culture lab at Hirapur (Ahmedabad).
• Casil Health Products Limited, a Cadila Group company, has a factory at Mehsana.
• Cadila plans to set up around seven to eight units in the coming Pharma SEZ near Ahmedabad over the next six years starting from 2009 onwards, with an estimated investment of around US$ 150 million. Concord Biotech • Concord Biotech is a biotechnology company. It was established in 2000. It had a revenue of US$23.4 Limited million during 2009-2010. • The existing portfolio of products includes APIs in the immuno-suppresant, antibiotic, hypo-lipemic and enzyme segments.
• It has a manufacturing facility at Dholka in Ahmedabad . It is spread over 28 acres.
• Also, the corporate and head offices are situated in Ahmedabad.
100 BUSINESS OPPORTUNITIES Gujarat November 2010
Pharmaceuticals and biotechnology – company profiles … (3/4)
Indus Biotherapeutics • Indus is a full-service biopharmaceutical contract research organisation established in 2000 in (India) Ahmedabad. • It is a wholly-owned division of Intas Pharmaceuticals and operates as a contract research organisation for biotech and drug delivery in India. Novartis – Chiron • Novartis India, incorporated in 1947, is the Indian subsidiary of the Switzerland-based Novartis AG.
• The company finds its origin from three separate entities namely Geigy, Ciba, and Sandoz. Geigy was founded in 1758; Ciba was founded around 1860 and Sandoz was founded in 1886.
• Chiron Behring Vaccines is a 51:49 joint venture between Novartis and Aventis Pharma.
• The Chiron plant is at Ankleshwar. Quintles • Quintles is a fully integrated biotech and pharmaceutical services provider offering clinical, commercial, consulting and capital solutions.
• Key services in India include biostatistics, data management, clinical monitoring, central laboratory services, electrocardiogram monitoring services, project management and regulatory services.
• Quintles India, the Indian subsidiary, has four offices in India.
• The research laboratory of the company is located at Ahmedabad. Span Diagnostics • Span is a diagnostic company.
• Products include diagnostic reagents and kits, instruments, and industrial & research products.
• Corporate office is located at Surat ; plant located at Sachin near Surat. Sterling Gelatin India • Sterling Gelatin India was set up in 1995 under a collaborative agreement between Sterling Gelatin and Croda Colloids, a global player in gelatine technology.
• The company is part of the Sandesara group of companies.
• Has manufacturing facility at Vadodara. 101 BUSINESS OPPORTUNITIES Gujarat November 2010
Pharmaceuticals and biotechnology – company profiles … (4/4)
Torrent Gujarat • Incorporated in 1991,TGBL has become the largest new-generation producer of Penicillin-G, meeting about 18 per cent of the country's Penicillin needs. It is one of the few companies in the world with an Biotech Limited integrated technology to manufacture Penicillin-G. (TGBL) • The company‟s corporate office is located at Ahmedabad; has office and plant in Vadodara. Zydus Cadila • Zydus Cadila is a leading pharmaceuticals company with sales of US$ 800 million in 2009-2010.
• Product line includes formulations, APIs, diagnostics, health- and diet-foods, skin care and animal healthcare products.
• The company exports formulations and APIs to over 43 countries.
• Focus areas for exports include cardiovascular, gastrointestinal and pain management.
• Production units are located in Ahmedabad, Vadodara and Ankleshwar for manufacturing tablets, injectibles, capsules, liquids and APIs. Aarti Drugs Limited • Part of the Aarti Group of Companies. Incorporated in 1984. (ADL) • Started commercial production in GIDC Industrial Estate, Valsad.
• Had turnover of US$ 95 million in 2009-2010.
• Products include APIs, steroids, pharma intermediates and specialty chemicals.
• Has a strong presence in the anti-diarrhea and anti-inflammatory therapeutic groups.
• Factory is located at Sarigam in Gujarat.
102 BUSINESS OPPORTUNITIES Gujarat November 2010
Shipbuilding industry
• There are several shipyards present in Gujarat Shipping industry such as ABG Shipyard, Alcock Ashdown and the Vipul Shipyard.
• The infrastructure available for development of the shipbuilding industry includes: Mundra • Availability of raw materials such as ship ⋐ building plates and engines Okha • Stillness of water and deep draft Bhavnagar • Proximity to ancillary industries ⋐ Dahej • Sufficient anchorage space ⋐ Pipavav ⋐ • New shipyards are being established in Pipavav Jafrabad ⋐ and Hazira. They will be accommodated in a cluster of shipyards called Marine Shipbuilding Parks that will have common infrastructure and ⋐ Ship building ancillary facilities. Marine ship building parks (probable stretches) Ship recycling • A mega marine shipyard is proposed to be built at Bunkering facility Dahej and in the Gulf of Kutch. Sources: Gujarat Maritime Board data and industry sources
103 BUSINESS OPPORTUNITIES Gujarat November 2010
Tourism
• The state has a rich architectural and cultural heritage owing to its historical parentage of the Indus Valley Civilisation sites such as Lothal and Harappa. There are many forests and natural ecosystems, heritage monuments, beaches and coastal sites, gardens, lakes, archaeological and architectural sites in Gujarat.
• Eight tourism hubs have been created for the convenience of tourists visiting Gujarat. They are in Ahmedabad-metro, Ahmedabad (North Gujarat); Surat (South Gujarat), Vadodara (Central Gujarat), Rajkot, Junagadh and Jamnagar (Saurashtra) and Bhuj (Kutch).
• The year 2006 was celebrated as Tourism Year in Gujarat to promote it as a key tourist destination of India.
• Gujarat received “Best Tourism Pavilion” award in 2008 at Asia‟s biggest Tourism and Travel exhibition - “SATTE–2008” held at New Delhi.
• The state tourism budget has been increased from US$ 21 million in 2008-09 to US$ 35 million in 2009-2010.
• In 2009-2010, 16 million tourists visited the state.
104 BUSINESS OPPORTUNITIES Gujarat November 2010
Major projects being implemented
Cost Name of the project Promoter Industry Project ownership (US$ million) Vadinar refinery oil project – Petroleum Essar Oil Limited 5,217.4 Essar (Ruia) group Expansion [Refinery] Mundra ultra-mega power Coastal Gujarat Power Coal/lignite- 3,695.7 Tata group project Limited based power Coal-based power (Mundra) Coal/lignite- Adani Power Private Limited 1,889.1 Adani group project - Phase IV based power Koyali refinery project – Indian Oil Corporation Petroleum 1,278.7 Central Government Modernisation Limited [Refinery] Surat lignite power project - Gujarat Industries Power Co Coal/lignite- 281.5 State Government Phase II Limited based power Integrated textile park RJD Integrated Textile Park 113.2 Other parks Private (Indian) (Choryasir) Limited Integrated steel (Kachchh) Electrotherm India Limited 113.0 Primary steel Private (Indian) project Sugen power transmission line Torrent Power Power 65.2 Torrent group project Transmission Private Limited distribution Radial tyres unit Ceat India 147.7 Radial tyres Private (Indian)
Source: projectstoday.com
105 BUSINESS OPPORTUNITIES Gujarat November 2010
Key projects being planned
Cost Name of the project Promoter Industry Project ownership (US$ million) ONGC Petro Additions Petrochemicals Petrochemical complex (Dahej) 2,704.3 Central Government Limited [Hydrocarbon] Coal-based power (Bhogat) project Universal Success Coal/lignite- 2,391.3 Private (Foreign) - Phase I Enterprises Limited based power Nuclear power (Mithivirdi) project Nuclear Power Corporation 2,173.9 Nuclear power Central Government - Phase I of India Limited SEZ (Kandla Port) Kandla Port Trust 1,586.9 SEZ/EPZ Central Government Township (Godhavi-Ghuma) Popular Estate Management 281.7 Real estate Private (Indian) project Limited Sardar Sarovar Narmada Irrigation (Gujarat) project 280.6 Irrigation State Government Nigam Limited Sona Koyo Steering Systems Automobile Car parts (Sanand) project 65.2 Private (Indian) Limited ancillaries Five-star hotel and resort (Jetapur) Odhav Raj Hotel & Resorts 21.9 Hospitality Private (Indian) project Private Limited Gujarat State Road Road up-gradation (Surat-Dhulia) Development Corporation 21.7 Roadways State Government project Limited Setting up a tablets and capsules Diya Pharma 21.1 Tablets Private (Indian) unit
Source: projectstoday.com 106 GUJARAT November 2010
Contents
Advantage Gujarat
State economy and socio-economic profile
Infrastructure status
State policies and incentives
Business opportunities
Doing business in Gujarat
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A roadmap for doing business in Gujarat
Identification of location within Gujarat for setting the Industrial Unit
Approvals/Registrations/Filling with competent authority for setting up the project
Registration of Business Organization
Land Obtain EC from MoEF, Obtain CTE GoI for Category A from GPCB(in projects. SEAC, F&ED, case land is Apply to Gujarat Apply to the Private Apply to the SEZ Apply to Forest GoG for Category B declared as Industrial District Land or Industrial Park & Environment projects (listed in EIA dark zone) Development Collectorate for (Permissions developer for land Department for notification Corporation for Government from district Forest Land Dt14.09.2006) Industrial Estates Land collectorate )
Obtain permission under FCA & In case land falls under Urban development authority limits, WPA from competent Authorities apply to UDA for Zoning / Zone Change Certificate and apply to District Collectorate for NA permission Obtain CRZ clearances (if applicable) from F&ED
Apply for Water to DEE in case GWIL SSNNL : Narmada Irrigation Department: Local Governing CGWA : Ground Desalination relevant Authorities of GIDC Canal Other Canals Body : Surface Water Water Plants estates
MGVCL , Vadodara PGVCL , Rajkot DGVCL , Surat UGVCL , Mehsana Apply for Power to the relevant Zonal Offices (For Central Gujarat) (For Saurashtra & Kutch) (For South Gujarat) (For North Gujarat)
Apply for Gas to the relevant companies GSPC Gas Gujarat Gas Gail (India) Adani Sabarmati Charotar Gas Company Ltd Company Ltd Ltd Energy Ltd ; Gas Ltd Sahkari Mandali Ltd Construction Permission from Urban Development Authority
Apply for Factory License from department of Labour & Industrial Health and Safety
Apply for Consolidated Consent and Authorization from GPCB
Source: Doing Business in Gujarat 2008, Government of Gujarat 108 DOING BUSINESS IN GUJARAT Gujarat November 2010
Key approvals required … (1/4)
Approvals and clearances required Departments • SSI Registration – District Industries Centre (DIC)
• Industrial Entrepreneur‟s Memorandum (IEM) – DIC/ Industries Commissionerate, Government of Gujarat
• Filing Industrial Entrepreneur‟s Memorandum (IEM) and Letter of Intent (LoI) – Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Approvals/registration/filing information Government of India for setting up project • Letter of Permission (LoP)
• For automatic approvals - The Development Commissioner, Kandla Special Economic Zone, Ministry of Commerce and Industry, Government of India, Kandla (district Kutch), Gujarat.
• For other industries - Secretariat for Industrial Assistance, Ministry of Commerce and Industry, Government of India, New Delhi. • Registrar of Partnership Firms, Government of Gujarat for partnership firms and Registration of business organisation Registrar of Companies, Government of India (office located in Ahmedabad) for corporations. Authority for lands: • In GIDC estate - Concerned office of GIDC
• Government land - Concerned district collector or collector/district development officer Acquisition of land • Private land (purchase of agricultural land for non-agricultural use) – Private land owner
• Forest land - Ministry of Forest & Environment, State Wild Life Board, National Wild Life Board and Supreme Court (for land reserved for wildlife sanctuaries or national parks).
109 DOING BUSINESS IN GUJARAT Gujarat November 2010
Key approvals required … (2/4)
List of approvals and clearances Respective departments of states required No Objection Certificate (NOC) to be obtained from Gujarat Pollution Control Board (GPCB) Clearance from Pollution Environmental clearance:- Ministry of Environment and Forest, and Government of Gujarat Control Board (State Impact Assessment Committee). Authority depends of the purpose:- • GIDC estates - Zonal office
Arrangement of power • Locations other than GIDC estates - Zonal distribution company
• Captive power - Gujarat Energy Transmission Corporation Limited (GETCO) Arrangement of gas Gujarat State Petroleum Corporation (GSPC) or private distributor.
Authority depends on the location of unit: Proximity to Narmada Canal – Sardar Sarovar Narmada Nigam Limited (SSNNL) For drawing canal/underground water other than Narmada Canal – Irrigation department. For drawing water from the pipeline of Gujarat Water Infrastructure Limited (GWIL) – GWIL Arrangement of water Surface water – Local governing bodies (municipal corporations) For the usage of ground water for industrial purposes from the area falling under dark zone, over-exploited area or saline area – The Superintendent, from Gujarat, Water Resources Development Corporation (GWRDC) Water supply for industrial purposes within GIDC estate–Deputy Executive Engineer of the estate concerned. Authority depends on location of the unit, if the unit is located: • In GIDC estates – GIDC executive engineer in the region.
Approval of building plans • Outside GIDC estates – Director, Industrial Safety and Health, is authorised to give approval to plans of the premises, equipment layout and process layout, registration of factory and grant of licenses.
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Key approvals required … (3/4)
Approvals and clearances required Departments
Approval from Labour Department Labour Commissioner Approval from Commercial Tax Value-Added Tax (VAT) registration and Central Sales Tax (CST) registration: Respective Department area officer in whose jurisdiction the chief place of business falls. Mining lease approval Department of Geology and Mining Boiler registration Chief Inspectorate, Steam and Boiler, Government of Gujarat Handling of hazardous items Director of Industrial Safety and Health, Government of Gujarat Storage of explosive materials Directorate of Explosives, Government of India Customs bonding for 100 per cent Export Oriented Units located Collector of Customs & Central Excise, Government of India outside Special Economic Zones Quality certification Bureau of Indian Standards (office located in Gujarat)
111 DOING BUSINESS IN GUJARAT Gujarat November 2010
Key approvals required … (4/4)
Sector-specific approvals Sector Authority Food and drug manufacturing units Commissionerate of Food & Drug Administration, Government of Gujarat Registration for milk products Milk and Milk Products Board, New Delhi Projects located within 500m of the coastline Gujarat Maritime Board
Single-window clearance Industrial Extension Bureau (iNDEXTb) provides single point contact for all investment activities in Gujarat
Source: Doing Business in Gujarat 2009
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Cost of doing business in Gujarat
Cost parameter Cost estimates Source Cost of land (per sq ft) US$ 10 to US$ 150 Industry sources Hotel room cost US$ 40 to US$ 180 Indian hotel survey (per night) Cost of office space US$ 4 to US$ 12 Industry sources (rent per sq ft per annum) Cost of residential space US$ 2 to US$ 6.5 Industry sources (rent per sq ft per annum) Fixed charges: US$ 1 Power Gujarat Urja Vikas Nigam Limited Energy charges: US$ 0.07 to US$ 0.1 Commercial and industrial: US$ 10 to US$ 15 per Water Gujarat Water Resources Department month
Labour cost in Gujarat Minimum wages Industry Category of workers (US$/per day) Agriculture - 2.2 Un-skilled 2.6 Construction of roads and building Skilled 3.0 Un-skilled 2.5 Transport Skilled 3.0 Un-skilled 3.2 Industries Skilled 3.6
Source: Labour and Employment Department, Government of Gujarat 113 DOING BUSINESS IN GUJARAT Gujarat November 2010
Key nodal agencies in Gujarat … (1/4)
Industrial Extension Bureau • Promotes investment in industrial and infrastructure projects, acting as a single-point contact. (iNDEXTb) • Identifies new investment opportunities and preparing project profiles.
• Prepares and publishes status reports and status papers on different industry groups.
• Coordinates with various government departments, chambers of commerce and industry associations at the state and central levels, Gujarat Industrial • Premier promotional agency, for providing all basic infrastructure to the industries in Gujarat. Development Corporation • Develops industrial estates at strategic locations all over the state. (GIDC) • Also offers basic amenities in industrial estates.
• Develops functional estates to fulfil specific needs of certain industries.
• Checks environmental degradation by resorting to specific measures. Gujarat Agro Industries • Promotes agricultural activities at the ground level and helps in development of agro Corporation (GAIC) industries. • Accelerates demand-based production of agro products to develop agro industries in the new global agricultural environment.
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Key nodal agencies in Gujarat … (2/4)
Gujarat Small Industries • Encourages the growth of industries in the SSI sector. Corporation (GSIC) • Acts as an authorised distributor and stockists of steel producers.
• Assists SSI units by providing imported and/or indigenous raw materials. Gujarat Infrastructure • Attracts private sector investment in infrastructure development projects Development Board (GIDB) • Frames policies for involvement of other public sector infrastructure development agencies
• Liaison with banks and other financial institutions interested in financing infrastructure projects. Gujarat State Financial • Finances industrial units in Gujarat and the Union Territories of Dadra and Nagar Haveli. Corporation (GSFC) • Provides financial assistance to new and existing SSI units.
• Offers finance to SSI units for obtaining ISO-9000 certification, marketing and sales promotion activities.
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Key nodal agencies in Gujarat … (3/4)
Industries • The commissionerate functions under the Industries, Mines and Tourism Department of Commissionerate Government of Gujarat, and implements industrial policies of the state and central governments. • Promotes development, monitors and controls functions for planned industrial developments in tiny, small, medium and large sectors, through a network of district industry centres, attached offices and industrial promotion corporations. Gujarat Power • Acts as a nodal agency for augmenting power generating capacity through private sector Corporation Limited participation. (GPCL) • Identifies power projects based on different fuels and prepares techno-economic feasibility reports.
• Obtains approvals from relevant authorities to prepare Power System Master Plan for the state. Gujarat Maritime Board • Contributes to the development of vital port infrastructure. (GMB) • Synchronises with hinterland development.
• Identifies green field ports for development.
• Specifies missing links in roads and railways and suggests upgrading existing links to facilitate easier approach to port locations.
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Key nodal agencies in Gujarat … (4/4)
Gujarat Industrial • Finances medium and large scale industries. Investment Corporation • Arranges finance for large projects available in consortium with other central and state-level Limited (GIIDC) financial institutions and banks.
• Infrastructure financing and offering a variety of financial packages Tourism Corporation of • Identifies tourism potential in the state Gujarat Limited (TCGL) • Undertakes the task of developing tourism and related commercial activities
• Maintains and upgrades tourism infrastructure and hotel projects with the help of privatised professional services
• Encourages investment for development of tourism-related infrastructure.
117 DOING BUSINESS IN GUJARAT Gujarat November 2010
Contact list … (1/2)
Key agency Contact information Block No 18, 2nd Floor Udyog Bhavan, Sector-11, Industrial Extension Bureau Gandhinagar-382 017 Phone: 91-79-23250492/93 Fax: 91-79-23250490 E-mail: [email protected] Block No 4, 2nd Floor Udyog Bhavan, Sector-11 Gandhinagar - 382 017 Gujarat Industrial Development Corporation (GIDC) Phone: 91-79-2325 0636, 2325 0637 Fax: 91-79-2325 0587, 2325 9359 E-mail: [email protected] Khet Udyog Bhavan , Opp. Old Gujarat High Court, Ashram Road, Ahmedabad-380 014 Gujarat Agro Industries Corporation (GAIC) Phone: 91-79-2754 4741-2, 2754 3743 Fax: 91-79-2754 2518 E-mail: [email protected], [email protected] Block Nos.6 & 8, Udyog Bhavan, 6th Floor, Gujarat Small Industries Corporation (GSIC) Sector-11, Gandhinagar - 382 011 Phone: 91-79-3223 653, 3232 280 Fax: 91-79-3232 166
118 DOING BUSINESS IN GUJARAT Gujarat November 2010
Contact list … (2/2)
Key agency Contact information Block No 11, 8th Floor Udyog Bhavan, Sector 11 Gujarat Industrial Investment Corporation Limited (GIIDC) Gandhinagar - 382 017 Phone: 91-79-2324 9641-44 Fax: 91-79-2323 6230 Block No 10, 1st Floor, Udyog Bhavan, Sector-11 Gandhinagar - 382 017 Gujarat State Financial Corporation (GSFC) Phone : 91-79-2325 6765, 2325 6766, 2325 9331 Fax : 91-79-2325 2204 E-mail: [email protected] Block No 18, 8th Floor , Sector-11, Udyog Bhavan Gandhinagar - 382 017 Gujarat Infrastructure Development Board (GIDB) Phone: 91-79-2323 2701/ 4/ 6, 2324 1544 Fax: 91-79-2322 2481 E-mail: [email protected] Block No 1, 2nd Floor, Udyog Bhavan Sector-11, Gandhinagar - 382 017 Industries Commissionerate Phone : 91-79-23252524, 23252526 Fax : 91-79-23252521 E-mail: [email protected]
119 DOING BUSINESS IN GUJARAT Gujarat November 2010
Annexure
Exchange rates
Year INR equivalent of one 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
120 GUJARAT November 2010
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