HARYANA September 2009 HARYANA September 2009

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, • Labour relations other government regulations • Availability of raw materials and natural • Certainty about rules and regulations resources • , law and order situation

Regulatory framework Resources/Inputs Investment climate of a state Incentives to Physical and social infrastructure • Tax incentives and exemptions • Condition of physical infrastructure such as • Investment subsidies and other incentives power, water, , etc. • Availability of finance at cost-effective terms • Information infrastructure such as telecom, • Incentives for foreign direct investment IT, etc. (FDI) • Social infrastructure such as educational • Profitability of the industry and medical facilities

2 HARYANA September 2009

The focus of this presentation is to discuss…

 Haryana‘s performance on key socio-economic indicators

 Availability of social and physical infrastructure in the state

 Policy framework and investment approval mechanism

 Cost of doing business in Haryana

 Key industries and players

3 PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS Haryana September 2009

Haryana‘s economic performance has been impressive, driven by the tertiary sector • Haryana‘s GDP grew at a CAGR of 16.8 per cent Haryana‘s GSDP (US$ Billion) between 1999-00 and 2007-08 to reach US$ 38.08 billion. CAGR 16.8% • The state economy is shifting from to and services sectors.

• The share of tertiary sector has increased because of the significant increase in trade, , banking, of dwellings and other services sectors, Source: Economic Survey of Haryana, 2008-09 such as business process . Percentage of GSDP • The secondary sector of Haryana is driven by automobile and auto components, light , electricity, gas and . Tertiary Sector

Secondary Sector

Primary Sector

Source: CMIE 4 PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS Haryana September 2009

Households in the state have high potential for consumption

• In 2007-08, the per capita income of Haryana was Percentage distribution of urban households by SEC* US$ 1,455.9, higher than the all- average of US$ 850.

• Distribution of households by socio-economic classification (SEC) shows that a significant portion of the state‘s urban households fall in the educated category; the state has a higher share of Urban entrepreneurs as compared to the all-India average; in rural areas too, the level of households with is better than all-India average. In percent Percentage distribution of rural households by SEC*

Source: BW Whitebook, 2009-10 *See Annexure for description of SEC classification

Rural

In percent

5 PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS Haryana September 2009

Households in the state have high disposable incomes...(1/2)

• In terms of ownership of household and Percentage ownership of household goods and , vehicles, such as two- and four-wheelers, and and electricity consumption , Haryana is ahead as compared to all-India levels.

Source: The Market Skyline of India 2006 by Indicus Analytics

6 PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS Haryana September 2009

Households in the state have high disposable incomes...(2/2)

• In ownership of household goods and basic amenities Percentage of rural population owing household such as in-house toilets, machines, clocks and goods and basic amenities ceiling fans, rural Haryana is ahead as compared to all-India levels.

Source: BW Marketing Whitebook, 2009-10

7 PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS Haryana September 2009

The state contributes significantly to the country‘s manufacturing..(1/2)

• Haryana has a significant share in the production of Large and passenger cars, tractors, motor cycles, refrigerators Small Parameter medium scale units and sanitary-ware in the country. industries

• The emerging construction and real estate sector Working units (no.) 1,347 80,000 has helped develop the services industry including IT and ITES. Production (US$ billion) 3.3 1.2

Capital investment • The small scale industry (SSI) provides services for 10.0 capital goods and manufactures metal products, (US$ billion) products, , food products, etc. ('000 number) 200 870

8 PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS Haryana September 2009

The state contributes significantly to the country‘s manufacturing..(2/2)

Key industries in Haryana

Automotive and auto components Bicycles and construction material Electronic goods Food products IT/ITES Oil refining Sanitary-ware Scientific instruments Stainless steel

9 PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS Haryana September 2009

Haryana has witnessed a strong inflow of investments in recent times

• As on December 2008, the total outstanding Break up of investments by sector investments* in Haryana was about US$ 76.57 billion.

16.8% • A large portion of investments of around US$ 41.55 billion have been made in the construction sector 0.1% (mainly real estate and construction), followed by electricity, services and manufacturing. Construction Irrigation • Key projects under execution include an integrated 17.9% refinery-cum- complex of Indian Oil Electricity Corporation, a based super-critical thermal 54.7% power project of Aravali Power, two coal based power projects of Haryana government, a basic telecom -services-project of Tata Teleservices, and an Source: CMIE engineering special economic zone (SEZ) project of Raheja SEZs Limited.

* Outstanding investments include new projects and those under implementation, but not projects shelved

10 PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS Haryana September 2009

Top 10 districts constitute 76 per cent of production..(1/2)

District Industries

Faridabad Tractors, motorcycles, switch gears, refrigerators, footwear, tyres, consumer durables

IT/ITES, automobiles, automobile parts, hardware, sports goods, rubber products, readymade garments, Gurgaon telecommunication equipment, food items, air conditioners, electrical goods, light engineering goods, pharmaceuticals, footwear, chemicals

Ambala Hosiery, scientific and surgical instruments, metal casting, kitchen mixer grinders, submersible motor pumps, textiles

Seed processing, wrapping papers, milk chilling, rice shelling, chemicals, iron and steel fabrication, agriculture Sirsa implements, leather goods, hard and straw board

Cotton , staple yarn, terry towels, soft drinks, hatcheries, handloom goods, products, urea, Panipat , power, handloom, power , / processing, agro based industries, , machinery, nuts and bolts

Karnal Textiles, agro-based industries, leather products, floriculture, electronic motors, wooden and steel furniture

11 PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS Haryana September 2009

Top 10 districts constitute 76 per cent of production..(2/2)

District Industries

Yamuna Nagar Metal industry, sugar, wood based industries, , steel, stone crushing

Bhiwani Textiles Stainless steel, automobile repair, textiles, handlooms, pipes, food processing, Hissar ginning and oil, engineering components, leather goods Jind Agro based industries, sugar mills, live-stock based industries, woollen blankets, foundry

12 HARYANA September 2009

The focus of this presentation is to discuss…

 Haryana‘s performance on key socio-economic indicators

 Availability of social and physical infrastructure in the state

 Policy framework and investment approval mechanism

 Cost of doing business in Haryana

 Key industries and players

13 AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE Haryana September 2009

Skilled as well as unskilled labour is available in the state

• Haryana has the highest workforce growth rate in the country, at 5.61 per cent, annually.

• There are a large number of skilled workers engaged in the informal sector.

• The minimum wage of industrial workers is amongst the highest in the country.

• Currently, the minimum wage of unskilled workers has been fixed at US$ 79.7 per month or about US$ 3 per day.

• The state government labour department has set standards and norms for ensuring labour safety.

14 AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE Haryana September 2009

Social infrastructure (educational and medical institutions) in the state is strong...(1/2)

Educational infrastructure Status of educational institutes Five state • Primary education is strong with a primary school 61 Engineering colleges located within a 1.1 Km radius of each village and middle school within 1.2 Kms. 34 MCA colleges 56 MBA colleges • In 2008-09, educational facilities were available within 27 Pharmacy colleges a radius of 1.5 Km; higher- and senior-secondary 76 Polytechnics schools were located within 2.3 Km. 355 Under-graduate colleges 75 Post-graduate colleges • The state‘s annual budget allocation for the year 2009-10 on education has been significantly 94 Government aided colleges increased to US$ 253.9 million from US$ 11.1 million 428 Technical institutions in 2006-07. Source: Economic Survey of Haryana, 2008-09; AICTE • An Indian Institute of (IIM) is being established at village Gharnavti in the Rohtak district.

15 AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE Haryana September 2009

Social infrastructure (educational and medical institutions) in the state is strong...(2/2)

Medical infrastructure Health indicators Parameter Haryana All-India • Haryana has 46 , 91 community health Birth rate* 23.9 23.1 centres, 427 primary health centres, 2,465 sub- Death rate* 6.5 7.4 centres, 20 district tuberculosis centres, five dispensaries, a post-graduate institute of medical Infant mortality rate** 57 55 education and research at Rohtak and a medical Life expectancy at birth (years) college at Agroha. Male 65.5 63.7 Female 70 66.9 • The annual budget allocation for the year 2009-10 on health services is US$ 44.6 million. Source: Economic Survey of Haryana, 2008-09; Ministry of Health and Family welfare, GOI *Per thousand persons **Per thousand live births

16 AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE Haryana September 2009

Haryana has a well developed rural banking infrastructure to support agricultural and rural

• As of March 2008, the credit to deposit ratio was 60 Financial institutions in Haryana per cent . By September 2008, the state had Primary agriculture and rural 87 achieved 76.9 per cent of the target of the annual development credit plan for 2008-09. Regional rural banks 1,874 Post office saving banks 2,650 • The Haryana State Cooperative Agricultural and Rural Development is the prime lender for Commercial banks 2,033 agriculture related activities in rural areas. Co-operative banks 362

Source: Economic Survey of Haryana, 2008-09 Reserve Bank of • The Haryana Finance Corporation and Haryana India State Co-operative Apex Bank Limited are the other agencies providing finance facilities.

17 AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE Haryana September 2009

Transport infrastructure is adequate

Roads Civil Aviation Railways

• Haryana has 24,218 km of roads with • The Indira Gandhi International Airport • Haryana has railway route length of nearly 1,512 km of national highways. in New Delhi is located close to roughly 1,595 Kms. Gurgaon and Faridabad.

• It is among the few states with 100 per • Kalka, Kurukshetra, Rohtak, Jind, Hissar, cent connectivity of rural areas with • Domestic airport is located in the Ambala, Panipat and Jakhal are important metalled roads. shared (with Punjab) capital city of railway stations; there is a railway Chandigarh. workshop at Jagadhari.

• Haryana Roadways, with its fleet of nearly 3,411 buses, is one of the biggest • There are civil aerodromes at Pinjore, state undertakings in the Karnal, Hissar, Bhiwani and Narnaul. country.

• National Highways one, two, eight, 10 and 22 pass through the State.

18 AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE Haryana September 2009

Power and telecommunications development

Power Telecommunication

• Haryana has historically been a state with 100 per cent rural • According to the Telecom Regulatory Authority of India, electrification. Haryana has a strong wireless subscriber base of 20.1 million and wire-line subscriber base of 900,000 as of September, 2008.

• As on December 31, 2008, the installed generation capacity in the state was 4,753 MW, mostly thermal power; power • There were 25.8 million BSNL connections on March 31, 2009, availability was 20,817 MU. of which 54 per cent were rural connections.

• The major consumer of electricity is the domestic sector • The teledensity in Haryana is 45.1 per cent ,which is higher accounting for about 77 per cent of power consumption. than the national average of 36.9 per cent.

• The per capita consumption of electricity was 755 units in 2007- • As on March 31, 2009, the state had 1,285 telephone 08 which is much higher than the all-India average of 672 kWh. exchanges.

• There are 2,329 post offices in the rural areas and 317 in urban areas.

19 AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE Haryana September 2009

Industrial infrastructure is strong..(1/2)

• The state government has enacted the Haryana Industrial Promotion Act, 2005, for industrial development.

• The industrial infrastructure in Haryana is being developed through state agencies such as Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and Haryana Urban Development Authority (HUDA) as well as private players.

Infrastructure Details Trade exhibition and and convention centres for garments at Gurgaon and handloom products at Panipat are convention centres proposed to be set up; a state-of-the-art exhibition and convention centre is also being planned at Faridabad. Promotion This park is located along the Haryana-Delhi border and is meant for export oriented units in sectors such as Industrial Park food processing, leather garments and accessories, electronics, telecommunications, automotives, sports goods, handloom and garments. Food parks These have been set up at Saha in Ambala, Rai in Sonipat, Narwana and Dabwali – to provide necessary facilities for food processing and packaging industry. Gems and Gems and Jewellery Park has been created at Udyog Vihar in Gurgaon to promote the gems and jewellery park industry.

20 AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE Haryana September 2009

Industrial infrastructure is strong..(2/2)

Infrastructure Details Industrial Model Townships (IMT) IMT Manesar is being developed as a prominent cluster for automobiles and auto components; It has industrial, residential, commercial and recreational facilities. Industrial clusters These include the scientific instruments cluster at Ambala, the metal industry cluster at Jagadhri, agricultural implements and rice milling clusters at Karnal, pharmaceutical cluster at Sonipat and chemicals cluster at Bahadurgarh. complex/ inland The state has three Inland Container Depots (ICDs) located at Faridabad, Panipat and Rewari; container depots other sector ICDs are also coming up in the state. Special economic zones Haryana has eight notified SEZs, 29 SEZs with formal approval and 28 SEZs with in-principle approval; the ‘ 10,000-hectare multi-product SEZ project at Jhajjar is the biggest SEZ of the country, so far, involving an investment of US$ 8.89 billion.

21 HARYANA September 2009

The focus of this presentation is to discuss…

 Haryana‘s performance on key socio-economic indicators

 Availability of social and physical infrastructure in the state

 Policy framework and investment approval mechanism

 Cost of doing business in Haryana

 Key industries and players

22 POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM Haryana September 2009

Key nodal agencies in Haryana

Haryana State Industrial and • Focuses on the development of medium and large-scale industries. Infrastructure Development • Provides financial assistance by way of term loans, equipment re-finance, equipment leasing Corporation Limited (HSIIDC) and working capital. Haryana Agro Industries • Has been engaged in trading activities such as sale of seeds, , pesticides, tractors and Corporation Limited (HAIC) other agricultural machinery at economical prices to the farming community.

Haryana State Electronics • It is the nodal agency of the Haryana government for promoting electronics and IT industries. Development Corporation Limited • It offers its expertise in infrastructure development as well as promotion of projects. (HARTRON) • Is responsible for promoting and securing development of urban areas; responsibilities include Haryana Urban Development land acquisition, development, and sale of property for residential, industrial and commercial Authority (HUDA) purposes. Haryana Finance Corporation • Meets the credit needs of small and medium scale industrial units by advancing term loans. (HFC)

23 POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM Haryana September 2009

Attractive investment climate through investment friendly policies..(1/4)

Haryana Policy, 2008 Aims to increase the earnings from tourism inflow at the rate of 10 per cent annually and seeks to promote sustainable tourism by encouraging a constructive and mutually beneficial between the public and private sectors for economic development and employment generation. The focus of this policy is:

• To promote tourism as a major engine of economic growth and capitalise potential of sustainable tourism for economic and employment generation.

• To acknowledge the critical role of private sector in development of tourism with government working as a proactive facilitator and catalyst. The objective is to broaden and diversify the concept of tourism from only highway tourism to eco tourism, adventure tourism, pilgrim tourism, farm tourism, golf tourism, medical tourism and heritage tourism etc. in order to meet new market requirements.

• To enhance the infrastructure, particularly in the National Capital Region (NCR), in view of the forthcoming Commonwealth Games 2010.

• To enhance professional excellence in training human resources and providing infrastructure for human resource development.

• Developed a sustained and effective marketing strategy and plan.

• To use to achieve the above mentioned goals. 24 POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM Haryana September 2009

Attractive investment climate through investment friendly policies..(2/4)

Industrial Policy, 2005 Aims to achieve the creation of an efficient and investor friendly environment with speedy clearances of new projects; encourages private sector participation in developing infrastructure Key features and initiatives under this policy include the following:

• Developing economic hubs and encouraging private partnership in the development of infrastructure.

• Focusing on commercial activities where the state enjoys comparative advantage (such as food processing and IT).

• Developing the services sector (i.e., tourism, transport, education, health care services and ).

• Creating an investor-focused approach in administrative processes and strengthening the grievance redressal mechanism.

• Providing subsidy to electronics units, agro and food processing units and projects being set up in backward areas.

• Exemption from payment of electricity duty for a period of five years to all new industrial units except those in the negative list.

25 POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM Haryana September 2009

Attractive investment climate through investment friendly policies..(3/4)

Information Technology Policy, 2000 Aims to encourage replacement of traditional public service delivery systems by IT driven governance systems, with the private sector providing infrastructure, framework and enabling environment

Key initiatives under this policy include the following:

• Constitution of a state level steering committee, IT prism, responsible for setting priorities for sectors to be taken up for computerisation, reviewing progress of various government departments and approving budget.

• Setting up of a separate Secretariat for IT to monitor implementation of IT initiatives.

• Setting up of a facilitation committee of state government officials and people from the IT industry to coordinate and facilitate private investments in the industry.

• Establishing an IT initiative fund with an initial corpus of US$ 2.1 million for e-governance to develop replicable and reusable models of e-governance and application of enabling .

• Preferential treatment for allotment of land and power to IT units in all industrial areas; exemption from payment of duty on electricity for captive power sets installed by the IT industry.

• Escort services and single desk clearance for obtaining easy clearances and approvals, with on-line clearance and support network linking all the related departments. 26 POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM Haryana September 2009

Attractive investment climate through investment friendly policies..(4/4)

Haryana Special Economic Zone Act, 2005 Aims to promote industrial townships with world-class infrastructure and creating a conducive investment climate for export promotion Provisions include the following:

• Project Approval Committee, which approves, modifies or rejects the application for setting up the SEZ.

• Exemption from payment of any tax, duty, fee, cess and other levies provided.

• The developer is bound to provide rehabilitation of population by providing built-up houses, residential plots and amenities.

27 POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM Haryana September 2009

Three-tier Single Window Clearance mechanism for speedy implementation of industrial projects..(1/2)

• Single Window Clearance mechanism established under the Haryana Industrial Promotion Act, 2005, that has a three-tier structure to grant exemption/relaxation from any of the provisions/rules of the Act.

• The investment promotion centres at New Delhi and Chandigarh and the District Industries Centre at the district level act as the nodal agencies and provide support to the committees.

28 POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM Haryana September 2009

Three-tier Single Window Clearance mechanism for speedy implementation of industrial projects..(2/2)

Investment handled Under the chairmanship of Nodal agency

Greater than US$ High Powered Principal Secretary to 7.14 million Clearance Committee Chief Minister Investment Promotion Centre – State Level

District Industries Between Centre US$ 1.19 – 7.14 State Level Clearance Principal Secretary – District Level million Committee Industries

Less than District Level Deputy US$ 1.19 million Clearance Committee Commissioner

29 POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM Haryana September 2009

Concerned agencies and time estimates for starting business in Haryana

Service/facility Concerned agency Timeline Site/environment clearance: 60 days Site clearances and no-objection Department of No-objection certificate to establish: seven days certificate Environment No-objection certificate to operate: 21 days Renewal of consent: 30 days Letter of intent/industrial licence: 15 days Permanent registration as SSI: seven days Licence, registration and change Department of Industries Grant benefit of tax concessions: 90 days of industrial land Allotment of plot: 30 days Change of industrial land: 30-60 days Sanction at local level: 30 days Incentives Department of Industries Sanction at head quarter/state level: 45 days Load up to 20 KW: 36 days Haryana State Electricity Load up to 70 KW: 66 days Release of power connection Board Load above 250 KW: 90 days Load above 1 MW: 105 days Sanction of loans HSIIDC/HFC Sanction of loan: 30 to 45 days

30 HARYANA September 2009

The focus of this presentation is to discuss…

 Haryana‘s performance on key socio-economic indicators

 Availability of social and physical infrastructure in the state

 Policy framework and investment approval mechanism

 Cost of doing business in Haryana

 Key industries and players

31 COST OF DOING BUSINESS IN HARYANA Haryana September 2009

Cost of doing business in Haryana

Cost parameter Cost estimates Source Industrial land purchase US$ 350-375 in IMT, Manesar and US$ 435-1,000 per sq mt in Property dealers/ real estate agents cost Gurgaon

Office space rent Gurgaon: US$ 1.4-3.1 per sq ft per month Property dealers/ real estate agents

Residential rent Gurgaon: US$ 400-825 for a 2,000 sq ft house, per month Property dealers/ real estate agents

Five-star room rent US$ 140-200 per room night Leading in the State

Commercial and industrial Haryana Electricity Regulatory 9.5 cents/KwH electricity Commission

Water Supply and Sanitation Water 6 cents per 1,000 litres Department

32 HARYANA September 2009

The focus of this presentation is to discuss…

 Haryana‘s performance on key socio-economic indicators

 Availability of social and physical infrastructure in the state

 Policy framework and investment approval mechanism

 Cost of doing business in Haryana

 Key industries and players

33 KEY INDUSTRIES AND PLAYERS Haryana September 2009 Key industries developed as a result of the policy thrust of the state government and factor advantages Industry Attractiveness Matrix High

IT & Electronics Biotech Food Petrochemicals Processing

Auto

Medium Components Policy thrust Policy Real Estate / Construction

Textile Metals

Low Medium High

Factor advantages* *Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital 34 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Overview of agro-based industry in Haryana

• In 2007-08, the production of rice and bajra (millet) Key Players recorded an increase of 7.2 per cent and 13.7 per cent, respectively, over the previous year. • Yakult Danone • GlaxoSmithKline Consumer Healthcare • Agriculture is one of the biggest employment • Perfetti Van Melle India generators in rural Haryana with strong potential in • Nestle value addition and .

• State is promoting organic farming aggressively; • The Department of Horticulture encourages financial assistance of US$ 10.9 per hectare provided cluster approach for the development of to farmers for production and use of vermi-compost. fruit cultivation; annual production of horticultural crops in 2007-08 was about 3.6 • Use of greenhouse technology being encouraged to million tonnes. promote disease free nursery and production of off- season fruits and vegetables. • has huge potential in rural areas and is being promoted as a self- employment venture; per capita milk availability in Haryana is the second highest in the country at 660 grams per day against the national average of 232 grams per day.

35 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the agro-based industry...(1/2)

Yakult Danone India Private Limited • Yakult is a leading probiotic drink globally; it is being manufactured in a state-of-the-art facility at Rai in Sonipat.

• The company is a 50:50 joint venture between Japan's Yakult Honsha and Group Danone of France.

• The company plans to expand its business in India. GlaxoSmithKline Consumer • Indian group company of GlaxoSmithKline UK, and one of the largest players in the health Healthcare Limited food drinks industry in the country.

• The factory at village Khera in Sonipat has a capacity of 26,000 tonnes per annum for its health foods brand, Horlicks.

36 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the agro-based industry...(2/2)

• Started operations in India in 1992. Has a factory at Manesar. Perfetti Van Melle India • Launched its first popular brand—Center Fresh— in the Indian market in 1994.

• Leads the Indian sugar confectionery market with more than 25 per cent of the value share of the market.

• Subsidiary of Nestle SA, Switzerland. Has its Indian headquarter in Gurgaon in Haryana. Nestle India • Has famous brand names in India such as Nescafe, Maggi, Milkybar, Milo, Kit Kat, Bar-One, Milkmaid, Nestea, Nestle Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita.

• Has a factory at Samalkha factory (Panipat), commissioned in 1993, to manufacture milk products.

37 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Overview of textile industry in Haryana

• Abundant availability of gives Haryana a Key Players competitive advantage in the textile sector - cotton production in 2007-08 was roughly 1.88 million bales • DCM Textiles and an estimated 1.71 million bales in 2008-09. • Orient Craft • Benetton India • Cotton productivity in 2008 (Kharif season) was 665 Kg per hectare. • YKK India Pvt Ltd

• Textile production grew by 17.7 per cent in 2007-08 over the previous year; there are 73 mills and two composite mills in the state.

• Production of textiles, including ready-made garments, in Haryana is roughly US$ 1 billion, annually, and almost one-third of this is exported.

• A cluster of high- readymade garments units have come up in the well-developed industrial area of UdyogVihar, Gurgaon.

38 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the textile industry..(1/2)

• Engaged in the manufacturing of 100 per cent grey cotton yarn and melange yarn. DCM Textiles • Has a spinning mill located in Hissar with an installed capacity of 74,436 spindles.

• Exports to Spain, , Egypt, South Korea, Brazil, Hong Kong, and Israel.

• Wholly-owned subsidiary of the Benetton Group, Italy. Benetton India • United Colours of Benetton is amongst the market leaders in branded apparel, with more than 106 stores across 45 cities.

• Its manufacturing unit in Gurgaon manufactures almost 50 per cent of the garments required for Indian stores.

39 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the textile industry..(2/2)

• Located in Gurgaon and employs 3,000 people; has established itself as a premium exporter of Orient Craft Limited textiles from Haryana.

• Has embarked on an initiative to set up a textile-focused SEZ spread over 334 acres in Manesar.

• SEZ will provide employment to 50,000 people when fully operational in 2011; the first phase of the project is expected to be completed by the first quarter of 2010.

• It is a subsidiary of YKK Japan, which operates in over 50 countries with more than 200 factories. YKK India Private Limited • The factory located at Bawal produces a range of zippers and caters to the large domestic market for garments and footwear and also exporters.

40 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Overview of automotive and auto component industry in Haryana

• Preferred destination for auto majors and auto Key Players component manufacturers and host to many large players. • Maruti Suzuki • Hero Honda • The state produces half of the passenger cars and • Honda Motorcycle and Scooter India two-wheelers in the country. • Sona Koyo Steering Systems • Yamaha Group • Around 20 per cent of the workforce in the state is • Escorts engaged in the automobiles industry; important automobile centres are Gurgaon and Faridabad. • Munjal Showa • Delphi Automotives Systems • Talbros Automotive components • A skill development centre, National Automotive Testing and R&D Infrastructure Project (NATRIP) is • Rico Auto Industries being established at Manesar with an investment of • Omax Auto US$ 87 million.

41 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the automotive and auto component industry..(1/3)

• Has a market share of more than 50 per cent in the Indian passenger car market. Maruti Suzuki India

• Gurgaon facility has three integrated with a production capacity of 630,000 cars per year; the fourth at Manesar was inaugurated in February 2007.

• The Gurgaon plant will be gradually changed to serve as a base for engine assembly and machining, while automobile assembly will be integrated at the Manesar plant.

• World‘s single largest motorcycle company. Hero Honda

• Built two world-class manufacturing facilities at Dharuhera and Gurgaon with an annual production capacity of three million bikes per year.

• 100 per cent subsidiary of Honda Motor Company, Japan, with a factory at Manesar having installed Honda Motorcycle & capacity of 600,000 scooters and 400,000 motorcycles per annum. Scooter India (HMSI) • Cumulative investment of the company in the state has reached US$ 124 million.

• Has established its R&D facility at Gurgaon; one of three such facilities globally.

42 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the automotive and auto component industry..(2/3)

Escorts • Leading engineering in high growth sectors of agri-machinery, construction and material handling equipment, railway equipment and auto components.

• Corporate headquarters and manufacturing facilities for tractor assembly, transmission and engines, crankshaft and hydraulics located in Faridabad.

Yamaha Motors • A 100 per cent subsidiary of Yamaha Motor Company Limited, Japan.

• Manufacturing plant located in Faridabad which supplies to the domestic as well as overseas market.

Sona Koyo Steering Systems • Largest manufacturer of steering gears in India with 50 per cent market share.

• Leading supplier of hydraulic power steering systems, manual rack and pinion steering systems, collapsible, tilt and rigid steering columns, rear axle assemblies and propeller shafts.

• Has a manufacturing facility in Gurgaon.

43 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the automotive and auto component industry..(3/3)

Delphi Automotive Systems • It is a100 per cent subsidiary of the US based, Delphi Automotives. Private Limited • The Haryana facility manufactures catalytic converters and evaporator canisters and is one of the largest operations of its kind in the country.

Talbros Automotive • Manufacturer of automotive and industrial gaskets in India. Components • Haryana manufacturing facilities located at Faridabad, Gurgaon, Bawal and Sohna.

• Manufactures shock absorbers and struts for leading two-wheelers and four-wheelers. Munjal Showa

• Manufacturing plant in Gurgaon.

• Amongst the top domestic auto ancillary players in India. Omax Auto

• Manufactures sheet metal, tubular and machined components and sprockets for two-wheelers and four-wheelers at its two plants in Dharuhera in Haryana.

44 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Overview of petrochemical industry in Haryana

• The upcoming petrochemicals hub at Panipat is all Key Player set to drive the growth of the petrochemicals industry in North India; the 5,000-acre project will • Indian Oil Corporation be jointly set up by Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and Indian Oil Corporation Limited (IOCL).

• The new complex will create a dedicated industrial zone for downstream industries and is likely to attract an investment of US$ 3.26 billion.

• The state government, in collaboration with the central government, aims to set up the 'Central Institute of Plastic and Engineering Technology' to undertake R&D and create skilled manpower for the development of petrochemicals industry.

45 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key player in the petrochemical industry

Indian Oil Corporation • Manufactures petroleum products, crude oil, lubricants, grease, oil base, additives and others.

• Set up its seventh refinery at Panipat with an installed capacity of six million metric tonnes per annum (MMTPA) at a cost of US$ 830 million; its capacity has been increased to 12 MMTPA and is in the process of being increased further to 15 MMTPA by April 2010.

• Announced the setting up of the US$ 67 million Mundra-Panipat pipeline and naptha cracker complex at Panipat.

• Naphtha cracker and complex adjacent to the Panipat refinery are being set up with an investment of US$ 3.14 billion.

46 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Overview of real estate and construction industry in Haryana

• The real estate and construction industry are Key Players growing at a rapid pace in Haryana; growth in real estate encompasses activities in the residential, • DLF Group commercial and hospitality space. • Unitech Group • Ansal Group • Real Estate Development Council (REDCO) is the • Emaar MGF apex body for all stakeholders in the housing and construction industry; it was launched jointly by the • Vipul Group government of Haryana and the Ministry for Urban Development.

• The aim is to make Gurgaon one amongst the top ten cities of the world in a period of ten years; Gurgaon accounts for more than 70 per cent of the new commercial space coming up in the National Capital Region (NCR).

47 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the real estate and construction industry..(1/2)

DLF Group • One of the largest real estate players in India.

• Responsible for the development of 22 urban colonies, as well as an entire integrated 3,000-acre township - DLF City in Gurgaon.

• In August 2009, the foundation stone was laid for the first private metro rail project in the country. It is to be developed in Gurgaon by the DLF-IL&FS consortium. The 6.1 km project is to be completed within the period of 30 months from the day of the signing of the agreement.

• DLF‘s ‗Mall of India‘ in Gurgaon is spread over 3.6 million sq ft It is one of the largest malls in India. Unitech Group • A large real estate player which has executed projects with world-class service facilities such as Nirvana Country, Unitech World, Unitech Trade Centre, Unitech Business Park, Millennium Plaza (jointly developed with Vipul), Signature Towers and Global Business Park (jointly developed with Vipul).

Vipul Group • Vipul Limited has over 3 million sq ft in the residential and commercial real estate space, with prestigious projects in Gurgaon such as the Vipul Square, Global Business Park (jointly developed with Unitech), Vipul Agora, Vipul Plaza and Millennium Plaza (jointly developed with Unitech).

48 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the real estate and construction industry..(2/2)

Ansal Group • Has expanded its activities from real estate development to high value construction.

• Is present in Gurgaon through several projects in both the residential and commercial space.

• The Group employs over 5,000 persons.

Emaar MGF • A joint venture between Emaar Properties PJSC Dubai, a leading global real estate company, and MGF Development Limited, India‘s leading real estate developer.

• Has several housing and commercial projects in the State.

49 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Overview of IT/ITES and electronics industries in Haryana

• Gurgaon has emerged as a preferred destination for Key Players the IT Industry in North India. • IBM Daksh • Convergys India Services • Total software exports from Haryana were about US$ 3.04 billion in 2006-07; software exports from • Genpact the state have shown a growth of 33.5 per cent in • Tata Consultancy Services 2006-07 over the previous year. • WNS • Wipro Infotech • The in Haryana has also shown improved performance; a US$ 5.2 billion industry in • Evalueserve 2006, it grew at a CAGR of 19.2 per cent between 2002 and 2006.

• Industry manufactures products covering almost the whole spectrum, namely components, consumer electronics, communication equipment, , telecom handsets and control instrumentation.

50 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the IT/ITES industry..(1/3)

IBM Daksh • It is a leading provider of business process solutions with corporate office in Gurgaon.

• 25 service delivery centres at nine locations in India and Philippines, workforce of more than 30,000 making it the second largest business process outsourcing (BPO) vendor in India, in terms of headcount.

Convergys India Services • Has three operating centres in Gurgaon at DLF Atria, Orchid Square and Unitech Trade Centre, with the one at DLF Atria as the largest in India.

• Offers diverse portfolio of customer care solutions, including customer care services, simple-to- complex technical support solutions, marketing sales programs and back-office BPO. Tata Consultancy Services • Leading IT services company with global revenues of US$ 5.7 billion in 2007-08.

• It has over 120,000 IT consultants in 42 countries.

• Commenced operations at Gurgaon in 1995.

51 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the IT/ITES industry..(2/3)

WNS • One of the pioneers in offshore business process outsourcing (BPO).

• Serves clients in domains such as travel and transportation, , healthcare, shared services and knowledge services sectors.

• WNS achieved revenues of US$ 539.3 million in 2008-09, representing an increase of 17.3 per cent over the previous fiscal year.

• 140,000 square feet facility in Gurgaon with a capacity of 3,500 associates.

Genpact • Amongst the largest business services and technology solutions company in India; operates in the BPO and KPO domain.

• It provides a wide range of services, including finance and accounting, collections and customer service, insurance, supply chain and procurement, analytics, enterprise applications, IT infrastructure and management.

• Headquartered in Gurgaon; operations in Gurgaon have more than 7,000 employees.

52 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the IT/ITES industry..(3/3)

Wipro Infotech • One of the largest IT firms in the country.

• Impressive clientele includes many of the fortune 1,000 and global 500 companies.

• Its revenues were about US$ 1.05 billion in 2008-09 with a y-o-y growth of 10 per cent.

• Call centre at Gurgaon has a capacity of 2,000 seats.

Evalueserve (EVS) • Leading provider of KPO services.

• Provides custom market research, business research, analytics, investment research, intellectual property research and marketing and sales support services from its global research centres.

• Has three operation centres in India, all located in Gurgaon.

53 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Overview of biotechnology industry in Haryana

• Yes Bank is mandated along with Scott Wilson Key Players Kirkpatrick India to develop the Biotech City along the State‘s Kundli-Manesar-Palwal (KMP) expressway. • Proagro Seeds Company Private Limited • Establishment of research centres and laboratories in • Eli Lilly collaboration with the private sector being • Ranbaxy Laboratories encouraged.

54 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the Biotech industry..(1/2)

Proagro Seeds Company • Company of the Bayer CropScience Group. Private Limited • Leading seed company in India.

• Engaged in breeding, development, production and marketing of high quality hybrid field seeds.

• Has a biotech laboratory in Gurgaon where genetic markers, DNA finger printers and other tested techniques are used to support the company‘s plant breeding efforts. Eli Lilly and Company (India) • A subsidiary of the US pharmaceutical major, Eli Lilly and Company. Private Limited • Focuses primarily on therapeutic areas such as neurological disorders, endocrine disorders, cancer, cardiovascular diseases, bone and inflammation and gene regulation and has 500 employees across the country.

• In India, Eli Lilly has based its operations in Gurgaon and conducts clinical trials of biotech drugs from its global portfolio in India.

55 KEY INDUSTRIES AND PLAYERS Haryana September 2009

Key players in the Biotech industry..(2/2)

Ranbaxy Laboratories • Manufactures and markets branded and generic pharmaceuticals and active pharmaceutical ingredients.

• For the year 2007-08, the company recorded global sales of US$ 1,682 million.

• Based in Gurgaon but has over 12,000 employees worldwide with over 1,200 scientists for research.

• R&D centres in Gurgaon focus on novel drug delivery systems, new drug discovery and development functions.

56 KEY INDUSTRIES AND PLAYERS Haryana September 2009 Annexure

Socio-economic classification (SEC) of urban and rural households

Urban SEC grid

five five

four four years

Education/Occupation literate,

general

Illiterate

graduate graduate graduate

schooling

SSC/HSC

Certificate Certificate

professional

to nine nine to

but no formal formal no but

years/ years/

Graduate/post Graduate/post Graduate/post

course, but not but course,

School up to up School School up to up School Unskilled workers E2 E2 E1 D D D D Skilled workers E2 E1 D C C B2 B2 Petty traders E2 D D C C B2 B2 Shop owners D D C B2 B1 A2 A2

Entrepreneurs: employee none D C B2 B1 A2 A2 A1

Entrepreneurs: employee < 10 C B2 B2 B1 A2 A1 A1

Entrepreneurs: employee > 10 B1 B1 A2 A2 A1 A1 A1 Self-employed professionals D D D B2 B1 A2 A1 Clerical/salesman D D D C B2 B1 B1 Supervisory level D D C C B2 B1 A2 Officers/executives: junior C C C B2 B1 A2 A2

Officer/executive: middle/senior B1 B1 B1 B1 A2 A1 A1 57 KEY INDUSTRIES AND PLAYERS Haryana September 2009 Annexure

Socio-economic classification (SEC) of urban and rural households

Rural SEC grid Type of house Semi Education Pucca pucca Kuccha Illiterate R4 R4 R4 Literate but no R3 R4 R4 formal school Up to fourth R3 R3 R4 standard Fifth to ninth R3 R3 R4 standard SSC/HSC R2 R3 R3 Some college but R1 R2 R3 not graduate Graduate / post R1 R2 R3 graduate (general) Graduate / post graduate R1 R2 R3 (professional)

Source: Market Research of India

58 KEY INDUSTRIES AND PLAYERS Haryana September 2009 Annexure

Exchange rate

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

59 HARYANA September 2009

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