7 industry

7/17/2019 7 Industry

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Madhya Pradesh: Means Business

Industries


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Overview

MP is the second largest State in the Country stretching over 308,000 sq kms.

The State is blessed ith large mineral resources o! coal, diamond, limestone, methane etc.

MP is among the to" # states o! the Country !or industrial investments.

Per ca"ita $S%P &S% 3'())

Manu!acturing sector &S% 8.* bn))

+egistered - &nregistered

$ross state domestic "roduct +$S%P &S% /3,(83.'3 Mn))

verage groth rate *.*1 "er annum

Advantage MP

Total electricity generation ca"acity ',##(./* M2)

ndia4s !irst green!ield S56 ndore S56

ndustrial Centers 8

The State is centrally located

nvestor !riendly $overnment "olicies

Madhya Pradesh has one of the upcoming industrial base in India

Economic Snapshot Madhya Pradesh is emerging as a key growth center for the Country

Madhya Pradesh (MP) State that means businessOverview

MP is rich in lo grade coal suitable !or "oer generation.

Potential o! hydro7energy generation.

nstalled "oer ca"acity +MP4s share

ydel Poer $eneration9 8*/.: M2)

Thermal Poer $eneration9 /,;#:.* M2)

Power lectricity generation capacity at present is !"##$%&' M and estimated to rise to a surplus in &*+$

)Ministry o! Poer +"oermin.nic.in ))Source9 ndiastat.com +as on /3


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ROADNETWORK

ARPORTS

RA!WA"NETWORK

= The State is ell connected ith the rest

o! ndia ith almost #/* trains "assing

through the State on a daily basis. >!

these ;:* trains "ass through the State

ca"ital ?ho"al alone.

= The total length o! roads s"anning MP is

':,'00 kms.))

= @ational highays o! *,/00 kms runthrough the State.)

= ;8 @ational highays including trunk

routes o! %elhi7Mumbai, %elhi7Chennai,

%elhi7?angalore, %elhi7 yderabad.

= The total length o! State highays in the

State is (,88* kms.))

= Convenient linkages to estern "orts i.e.

Aandla Port, Baahar @ehru Port Trust.

= /* airstri"s.))

= Convenient air links !rom key ndiancities like %elhi - Mumbai to ?ho"al,

Babal"ur, $alior, ndore and Ahauraho.= * o"erational air"orts.

= ndore air"ort has the ca"ability o!handling international cargo.

= n international air"ort "ro"osed in?ho"al.

Enabling Infrastructure

MP S #ENTRA!!" !O#ATED AND WE!!

#ONNE#TED WT$ A!! MA%OR #TES N NDA

)Source9 %e"artment o! oad Trans"ort - Shi""ing +morth.nic.in ))Source9 .destinationmadhya"radesh.com

@%>5 ?>PD

B?DP&

$2D>

AB&>


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Third &argest prod'cer o(

cement in ndia)

*+ ,&oc-s with reserves

tota&&ing +./0/ mi&&ion tons

o( coa& has ,een identi(ied

!argest prod'cer o( p'&ses

and oi&seeds in the #o'ntry

123/4 o( soya,ean

prod'ction5

6*4 o( the State 'nder (orest

cover with a &arge&y 'ne7p&oited

species o( rare. va&'a,&e

medicina&8 her,a& p&ants

Over +.999 -ms o( roads

,eing deve&oped with

Private Partnership 1OT5

Over *0.999 technica&

grad'ates and +69.999

grad'ates add to wor-(orce

each year

Over *;; #M o( coa& ,ed

methane reserves avai&a,&e

Over *99agric'&t'ra& (arms with

an area o( over +9.999 acres is

avai&a,&e on &ease to investor

ndia at ndore

?avo'ra,&e c&imatic

conditions (or cottonand over ;9.999power8

&ooms are driving the

te7ti&e ind'stry

Avai&a,i&ity o( coa& and nat'ra& gas

1=@A@@! pipe&ine5 a&ong with s'pport

(rom =overnment to ma-e investment

in Therma& PowerP&ants &'crative

O((ers diverse to'rists destinations

catering to vario's segments o(

to'rism s'ch as re&igio's 1hop'r5.

ecoB advent're 1Panchmari5. heritage

1Sanchi. Kha'raho5 to'rism etc@

Madhya Pradesh:A Preferred Investment Destination

Cario's ,&oc-s avai&a,&e

(or power. cement. ironand stee& 'nits

)Source9 .m"sidc.org - ?rochure9 MP Means ?usiness


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M'm,ai+:80 Ams

+MPE 7 ;000 P'ne+800 Ams

+MPE 7 /0'.*;

anga&ore+;#00 Ams

+MPE 7 /*#.*/

#hennai

+;#30 Ams+MPE 7 3'/.8#

$ydera,ad+8#0 Ams

+MPE 7 /*:.(

De&hi+:#0 Ams

+MPE 7 :8(.*

Ahmeda,ad+*:0 Ams

+MPE 7 //0.'3

Ko&-ata+;3*0 Ams

+MPE 7 ';3.;(

Key Mar-ets

+%istance


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Industrial Policy: Catalyst for the InvestmentsThe $overnment o! MP has devised an investor (riend&y ind'stria& po&icy.

hich is aimed at achieving global com"etitiveness. The "olicy em"hasiHes

on industrial groth in the state through ado"ting cluster a""roach,

establishing s"ecialiHed in!rastructure and o!!ering !avourable incentives.

The main thrust o! this "olicy is9

= 5stablishment o! a Madhya Pradesh Trade and nvestment

?aci&itation #orporation hich ould take decisions about

rationaliHation o! taIes, !acilities o! mega "roects and other related

matters.

= 5nacting an nd'stria& ?aci&itation Act and to change the rules o!

business ith a vie to make single indo system decisive and result

oriented.

= Deve&oping in(rastr'ct're !or su""orting the identi!ied industrial

clusters

= eviving closed donJ sick industrial units by granting s"ecial "ackages.

= Attractive incentive schemes@

#!STER APPROA#$

= ndore F Pharmaceutical, TeItile, Certi!ication, Patent andTechnology Purchase cost

SPE#A! N#ENTCES

SP5C30D365%3@5

=ems %ewe&&ery Par- ndore


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Area Deve&oped9 /,#(/ ectares

A&&otted9 ;#3; ectares

nits esta,&ished9 *:*

Maor =ro'ps9 Tata, anbaIy, 5icher,

?ridgestone, industan Motors, Ainetic,

S


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nd'stries


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MP: The Emerging Power

= Madhya Pradesh is an emerging industrial "oerhouse o!

the country.

= The State houses around 4"* companies and ;(

industrial groth centers +located across :;#: ectares.

that are close to maor cities. This makes good social

in!rastructure accessible to industrial units.

=


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MP:Attracting Investments= MP o!!ers an un"arallel locational advantage to com"anies as they

incur loer trans"ortation cost !or trans!erring goods to every corner

o! the country.

=


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Enabling Infrastructure= State $overnment is committed to su""ort the investors -

"rovide them a hassle !ree atmos"here in the $overnment

machinery. The state has taken several initiatives to "romote

investments in the state by creating enabling in!rastructure.

Some o! the key initiatives are highlighted belo.

= S"ecial 5conomic 6one at ndore is being established in

;038 hectares o! land ith the investment o! &SN ///

million, has become o"erational.

= 8 %s +ntegrated n!rastructure %evelo"ment Centre are

being setu" at @andantola, @imrani, Bagga Ahedi,

Damtara, @aogaon, Sindiya, Prata""ura, Baderua

= ;'* ndustrial reas ith basic in!rastructure !acilities are

!unctional.

nvestment $igh&ights

= /;: "ro"osals o! (oreign direct investment ith an

investment o! SI *@6 ,i&&ionare cleared by $> !or M.P.

= /0: &etter o( ntent ith a "ro"osed investment o! SI

09; mi&&ionare cleared by $> !or M.P.

= ;(:8 ndustrial 5ntre"reneurs Memorandum have been

issued by $> in !avour o! industrial grou"s ho have

shon interest to invest in M.P. ith a "ro"osed investment

o! SI *;@;6 ,i&&ion@

M@P@S@@D@#@

M@P@ F SPE#A!>ED N?RASTR#TRE

=rowth #entres

ntegrated n(rastr'ct'reDeve&opment #enters

?ood Par-s

SE> ndore

Stone Par-ESTA:!S$ED

#rysta& T Par-

Appare& Par-s

Diamond Par-s

Agri E7port >onesPROPOSED


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Source' Ministry of Commerce and (ndustry, )epartment of Commerce

?OR SE> NTS

ncome Ta7 ncentives ;001 taI holiday !or a "eriod o! any ;0 consecutive

years out o! ;* years beginning !rom the year in

hich the S56 is noti!ied

5Iem"t !rom dividend distribution taI

Dong7term ca"ital gains arising on trans!er o! shares

in develo"er com"any taI eIem"t

@o minimum alternate taI +MT

?OR DECE!OPERS O? SE> S

ncome Ta7 ncentives

;* year cor"orate taI holiday on eI"ort "ro!it F ;001

!or initial * years and *01 !or the subsequent * years

*01 o! reinvested reserves !or the balance * years

#ommon ncentives

ndirect Ta7 ncentives

@il customs duty

@il eIcise duty

5Iem"tion !rom central sales taI

5Iem"tion !rom service taI

5Iem"tion !rom securities transaction taIOther ene(its

%uty !ree "rocurement o! ca"ital goods +including

second hand ca"ital goods, ra materials and

consumable s"ares !rom domestic market

po&icy (or deve&oping Specia& Economic >ones in the state@ The SE>s. earmar-ed as d'ty8(ree enc&aves.

aim at promoting rapid ind'stria& deve&opment and emp&oyment generation@ The approved po&icy regime inc&'des:

= 5Iem"tion o! all state and local taIes

= 5Iem"tion !rom stam" duty and registration !ees

= $rant o! labour, energy, environment, industrial health and sa!ety related "ermits and a""rovals through a dedicated single indo mechanism

= 5Iem"tion !rom electricity dutyL cess and any other taI or levy on sale o! electricity !or sel! generated and "urchased "oer.

= 5I"editious "rocess !or land acquisition to set u" S56s


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Thrust !reas

#ement

A'to A'to #omponents

Te7ti&es Appare&s

Pharmace'tica&s

Engineering E&ectrica& EJ'ipment

#hemica&s

= ndustry in Madhya Pradesh is largely resource driven, leveraging the state4s natural ealth in the !orm o! limestone, coal,

soya, cotton, bauIite, iron7ore, silica etc. There!ore the state has a strong industrial base in sectors like teItile, cement,

steel, soya "rocessing and o"tical !ibers.

= oever, there have been a !e eIce"tions to the resource driven industrialisation and the State as a result o! its

aggressive incentive "olicies and strong solicitationJ!acilitation is develo"ing into a strong base in the uto, auto ancillary

and teItile sectors.

= Substantial o""ortunity ould emerge in !olloing sectors.


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Cement


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#ement: Evo&ving !andscape

MP: The #ement Prod'ction Powerho'se

MP is Nat'ra&&y Strong

MP: A Pre(erred nvestment Destination

E7p&oring the Opport'nities: Proect Pro(i&es

Way ?orward

.ector Profile: Cement


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Cement: Evolving 0andsca1e=ndia is the second &argest prod'cer o( cement in the wor&d a!ter China.

The ndian cement industry4s ca"acity as on March /00* as around ;'0 mn

tonnes +including the mini cement "lants. t consists o! over *# cement

"layers and more than ;/( manu!acturing "lants and is highly !ragmented and

regional in nature.

=ts estimated market siHe in value terms is around 6S7 *%*$ billion and

around 48 mn tonnes "er annum +mt"a in volume terms. t oes its

regional nature to the concentration o! cement "lants near the clusters o!

limestone reserves, located only in !e states. This has led to a sur"lus

situation in some regions and shortages in others.

=ndia is one o! the !astest groing markets !or cement 95%&: C/;3+/00070;

to /00#70*. The demand in the Country is riding high on the continuing groth

in all the sectors es"ecially in the TJTeS, os"itality industries hich in turn

has driven the retail, real7estate and in!rastructure boom.

ndia: A Maor #ons'mer o( #ement

+99;

Key Drivers o( =rowth

= Strong housing demand

= igh level o! commercial construction activity

= ncreased government !ocus on in!rastructure

s"ending

= igher investment in industrial "roects

The ind'stry is not on&y &oo-ing (or &ocations with avai&a,i&ity o( &imestone (or prod'ction o( cement. ,'t a&so (or

avai&a,i&ity o( coa& (or their captive power p&ants

= 5ven though industry has huge "otential, it !aces certain challenges, !or

instance, the high "oer and !uel costs and erratic "oer su""ly in most o! the

states is a!!ecting the com"anies.

ence, most com"anies have o"ted to set u" their on ca"tive "oer units to get a regular su""ly o! "oer and o"timise costs.


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MP: The Cement Production Powerhouse

= M.P. is the third largest "roducer o! cement in the Country. t caters to *64 o( the

nationa& demand. The State4s rich limestone reserves and the logistical

advantages o! these sites reduces the overall cement manu!acturing - su""ly

chain cost, hel"ing the cement com"anies to get a higher eturn on nvestment

+>.

= t "resent several maor grou"s such as ?irla Cor"oration, Eikram Cement, Prism

Cement, B.P. ea, %iamond Cements, - CC cement are "resent in Madhya

Pradesh. >ut o! these units B.P. ea - CC are in "rocess o! in


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Dimestone eserves

Coal eserves

MP Is $aturally .trong=Madhya Pradesh has a vast reserve o! limestone. The total

reserves o! limestone is 8!&'%$* mn tonness"read across

the districts o! %amoh, oshangabad, Mandsaur,

@arsingh"ur, ea, Satna, Panna, Aatni, Sagar, %har,

Ahargone, Bhabua, ?alaghat, Sidhi and Morena.

Avai&a,i&ity o( high J'a&ity &imestone (or cement prod'ction and coa& (or captive power p&ants ma-es Madhya Pradesh

an idea& &ocation (or cement prod'ction@

Pro"ortion o!

>n Poer ToPurchase+ndia Dikely To

ncrease


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Nagp'r+3*0 Ams

!'c-now+'80 Ams

Kanp'r+'00 Ams

M'm,ai+:80 Ams

P'ne+800 Ams

anga&ore+;#00 Ams

#hennai+;#30 Ams

h',aneshwar+;/00 Ams

$ydera,ad+8#0 Ams

De&hi+:#0 Ams

%aip'r+*80 Ams

Ahmeda,ad+*:0 Ams

Ko&-ata+;3*0 Ams

Patna+(;0 Ams

Madhya Pradesh 1as /ccess -o >ey

Cement Markets /cross -he Country%

Key Mar-ets

+%istance


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MP : ! Preferred Investment Destination

&%& Mn&%& Mn

-onnes-onnes

#%& Mn#%& Mn

-onnes-onnes

4%'' Mn4%'' Mn

-onnes-onnes

& Mn& Mn

-onnes-onnes

8 Mn8 Mn

-onnes-onnes

1Ci-ram #ements !td@5

& Mn& Mn

-onnes-onnes

1Maihar#ements !td@5

4%& Mn4%& Mn

-onnes-onnes

1Diamond #ements !td@5

= Most o! the leading cement

manu!acturers o! the Country have

"resence in MP. Seven maor Cement

"lants are o"erating in the State ith theannual installed ca"acity o! */@H3 mi&&ion

tonnes.

= vailability o! ra material and investor

!riendly environment has !acilitated

several leading "layers in setting u" their

sho"s in the state. 5yeing the "otential

o""ortunity, the eIisting "layers are"ro"osing to eI"and their o"erations in

the State.


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6ay 7orward

Proposed Proects

!ocation P&ayer Description

Sidhi Bai"rakashssociates Dtd. nstall Cement unit ith installed ca"acity o! + mi&&ion tonnes

Satna BE +SD - BD nstall Cement unit ith installed ca"acity o! +@+ mi&&ion tonnes

Satna MJs eatinvestments

nstall Cement unit ith installed ca"acity o! + mi&&ion tonnes

@e Dimestonerea

$rasim nstall a Cement "lant ith an investment commitment o! SI *** mi&&ion

#onsidering the present scenario the avai&a,i&ity o( raw materia&. there is a scope o( ('rther investment o(

7&%' bn? in this sector in the state%

=M@P@ State nd'stria& Deve&opment #orporation has prospected that Damoh8Panna area. and e&a8Pagra o(

Rewa have &imestone deposits o( 0 mn tonnes and +9 mn tonnesrespective&y@

=?esides these areas, the area around aghuranagar and @agod Tehsil o! Satna district also have de"osits o!

limestone.

So'rce: www@destinationmadhyapradesh@com


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Auto & Auto Components


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Evo&ving !andscape

Madhya Pradesh : A'to $', o( ndia

Advantage Madhya Pradesh

M@P@: An nvestment Destination

O((ering Speci(ic ncentives

E7p&oring the Opport'nities: Proect Pro(i&es

.ector Profile: !uto 8 !uto Com1onents


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Evolving 0andsca1e=The ndian automotive industry has !lourished in the recent years. This eItra7

ordinary groth in the ndian automotive industry has been a result o! the

increase in the "er7ca"ita dis"osable incomes hich has resulted in

im"rovement in the living standards o! the middle class.

=Car Com"anies in ndia have lined u" more than SI G@G3 i&&ioninvestments.

=Most automakers o! the orld either have active "resence in the Country or they

source com"onents !rom ndian com"onent manu!acturers. The leading global

"layers such as yundai,


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MP: !uto 9ub of India=MP has been actively "romoting the develo"ment o! the engineering industry in the

state. The state is one o! the leaders in auto and auto ancillary industry ith around *

>riginal 5qui"ment Manu!acturers +>5Ms and over ;00 auto com"onent

manu!acturers.

=Madhya Pradesh has an auto com"onent industry o! around &SN 30' million.'01 o!

the auto industry in Madhya Pradesh is controlled by uto com"onent "layers.

=The State has develo"ed an industrial cluster at Pritham"ur hich "rovides readily

available in!rastructure !or com"anies illing to set u" manu!acturing !acilities in the

State. The estate is s"read over an area o! *,000 hectares. The "ro"osed multi

"roduct S56 is in the vicinity o! the industrial estate.

=The state is itnessing an u"surge in investments in the sector. The strategic

location, $overnment cluster develo"ment initiatives, skilled ork!orce are some o!

the !actors that are "roviding the state a com"etitive edge over other states.

Pithamp'r A'to #&'ster Deve&opment

The &nion government o! ndia has sanctioned an auto cluster in the Pitham"ur

industrial area. The $overnment o! ndia ill grant an amount o! &SN ;; million !or

the "ur"ose. Docal industrialists have agreed to contribute &SN 3 million !or the

"roect.

The cluster ould be equi""ed ith the wor&d


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Automotive Proving Grouns ! Pithampur= rea o! Dand F ;.999 Acres

E7emptions8

= egistration ther Docal taIes

Proposed ?aci&ities8

= $igh Speed Test trac-s=>val sha"ed test tracks at the outer boundary

=To straights o! 3*00 meters - Curves o! radius

;00m each

=MaIimum testing s"eed o! 3*0 AmJ hr

= Dynamic P&at(orms

=%ynamic rea o! ;*0 meters radius

=To acceleration lanes o! ;000m

=Testing s"eed more than /00 kmJhr

= Straight !ine ra-ing

=


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Automotive Proving Grouns ! Pithampur


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!dvantage MP

=Pitham"ur is an industrial

estate s"read over *000

hectares o! Madhya

Pradesh, ndia.

=Pitham"ur is a hub !or the

automobile manu!acturing

industry and in addition to

units such as 5icher

Motors, Ainetic onda,

industan Motors and ?aa

Tem"o Dtd.

=2ith / OEMs+ "lus /"ro"osed and over ;00

com"onent manu!acturers,

Pitham"ur is an ideal

location !or uto and uto

com"onent industry

Pithamp'r8 -he /uto+/utoComponent 1ub of India

=?eing centrally located and in

close "roIimity to key ndian

cities MP is the ideal location

!or uto7uto ncillary industry.=S"ecialised in!rastructure in a

cluster and government

su""ort have enabled MP to

surge ahead o! other states.

Madhya Pradesh8Strategically Placed @or /uto

=2ith cost reduction and "recision

engineering being the mantra !or

most >5Ms ndia is all set7to

become the uto com"onent

su""lier o! the orld.

=

commitments, the $overnment

announced the uto Policy o!

/00/, aimed at develo"ing ndia

as a manu!acturing and eI"ort

base !or small cars and auto

ancillaries.

ndia8 The Emerging Power

=The global automotive "arts industry

has undergone a sea change over the

"ast decade. Consolidation and

restructuring have accelerated ith the

o"ening o! ne and increasinglyim"ortant markets.

=The search !or scale and sco"e

economies by large manu!acturers and

the di!!iculty o! smaller manu!acturers

to sustain themselves in the

investment race have led to increased

outsourcing to countries like ndia

=Su""liers are diversi!ying

geogra"hically, increasing researchand develo"ment, and entering into

oint ventures in an e!!ort to seek more

module contracts.

=The orld is also itnessing

mushrooming o! >5Ms in ndia, China,

Thailand etc.

Wor&d is &oo-ing at ndia


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Offering .1ecific Incentives

=Commercial taI rates levied on automobile com"onents industries and trade

are being rationaliHed and ill be brought at "ar ith the rates "revalent in

other com"eting states.

=5ntry taI rates on ra material such as steel being used by automobile

com"onent industries shall be rationaliHed.

commitments, the $o announced the utoPolicy o! /00/, aimed at develo"ing ndia as a manu!acturing and eI"ortbase !or small cars and auto ancillaries. ccordingly, the "olicy enumeratedseveral measures to develo" the automobile market, including9

=emoval o! the clause on minimum !oreign direct investmentL

=emoval o! earlier sti"ulations on indigenisation and im"ort7balancingrequirementsL

=Permitting !oreign automobile manu!acturers to set u" holly7onedsubsidiaries in ndia, ithout requiring a""roval !rom the


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MP:A Strategic Location

M'm,ai

13095

Cisha-apatnam

1*6*95

Kand&a

1H665

$a&dia

1*6/95

hi&ai

Nagp'r

16/+5

North

1;+45

West1+045

So'th

1+/45

East1/45

%amshedp'r

1*++95

Satara. P'ne.Ahmednagar. andRaigad

10995

= The c&'ster at Pithamp'r a&so has signi(icant

&ocationa& advantages on (o&&owing three aspects@

*5Pro7imity to stee& p&ants o! ?hilai, @ag"ur etc is

likely to result in reduction ra material costs. The

cost o! ra material is around '01 o! the total

"roduction costs o! hich steel is the key com"onent

ithin the ra material.

+5Pro7imity to portsboth in east coast and est coast

"rovides a vital linkage to the international markets.

Since, the auto industry is eI"orts driven this linkage iscritical to the develo"ment o! the cluster.


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MP: ! Preferred Investment Destination

=Some o! the other su""orting !actors assisting your business ould be9

;. Central location

/. vailability o! skilled man"oer

3. Do o"erating cost

#. Co7o"erative Dabour &nion etc.

=Madhya Pradesh is one o! the leading states in the Country !or the auto and

auto ancillary industry in the Country. To its advantage several units are

cluttered around a small stretch o! land hich ould enable both !orard and

backard su""ort to your business.

=The lo set7u" costs make business "ro"osition one o! the best in the orld.


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"e#tiles & Apparel


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Te7ti&e: Evo&ving !andscape

Madhya Pradesh : Emerging Te7ti&e $', o( ndia

Madhya Pradesh


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ndia contributes to about /*1 share in the orld trade o! cotton yarn. t is the

orld4s third7largest "roducer o! cotton and second7largest "roducer o! cotton yarns

and teItiles.

ndian teItile industry has about //1 to the orld s"indleage and about '1 to the

orld rotor ca"acity installed. t has second highest s"indleage in the orld a!ter

China ith an installed ca"acity o! 38.'0 Million

t has the highest loomage +including handlooms in the orld and contributes ith a

share o! ';1. t contributes about ;/1 to the orld "roduction o! teItile !ibers and

yarns.

ndia is one o! the largest consumers o! cotton in the orld, ranking second to China

in "roduction o! cotton yarn and !abrics and !irst in installed s"inning and eaving

ca"acity

Through eI"ort !riendly government "olicies and "ositive e!!orts by the eI"orters,

teItile eI"orts have more than doubled !rom &S% :.** billion in ;((37(# to &S% ;:

billion in /00*70'.

The ready made garment sector is the biggest segment in the ndia4s teItile eI"ort

basket contributing over #'1 o! the total teItile eI"orts.

5I"ort o! cotton based items continue to "re7dominate hich is natural in vie that

ndia is the orld4s third7largest "roducer o! cotton

5I"orts have gron at an average o! (.#:1 ".a over the last decade. TeItile eI"orts

in /00*70' has gone u" to &S% ;: billion hich is /31 higher than "revious year.

-he industry is poised to play an increasingly important role in global cotton and te=tile markets as a result ofdomestic and multilateral policy reform%

Prod'ction O( ?i,ers +Mn Ags

Raw cotton #;//

Man8made (i,re ;0/3

Prod'ction O( "arn

#otton yarn //:/

?i&ament yarn ;;0(ndianProd'ction

Statistics1+99/5

bout #1 o! $ross %omestic Product

bout ;#1 o! total industrial "roduction

5m"loys /01 o! ork !orce

bout ;:1 o! gross eI"ort earnings

#ommodities 1Mi&&ion SD5

eadymade garments '038.'(

Cotton teItiles 3/(0.3;

Man7made teItiles ;(#8.:/

2ool - oolen teItiles ''.*:Silk teItile #0'.8/

andicra!t , Coir etc ;3;#.;3

Tota& *69G/@+;

ndia


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35

MP: Emerging Tetile 9ub of India

S"inning &nits #0

S"indles ;#,;#,000

5I"ort7>riented S"inning &nits ;/

otors ;#,3#8

Dooms ',*00

5Iclusive 2eaving &nits 8

Poer Dooms #3,/(0

Poer Doom &nits ;:,*/#

andlooms #:,000

Com"osite Mills /0

n(rastr'ct're at a g&ance=The industrial history o! MP dates back to the later "art o! ;( th

Century hen in ;8'', a cotton teItile unit established by then

Maharaa olkar at ndore.

=Presently, the teItile industry in the state is thriving in the

southest +Mala region. large number o! cotton teItile mills are

clustered around ndore, &ain, ?urha"ur etc.

=5asy availability o! cotton, $inning and Pressing units, skilled

man"oer, develo"ed education system, entre"reneur skills etc

are some o! the reasons !or ra"id groth o! the industry in the

State.

=Presence o! maor teItile "layers such as ?hilaras, ndo7ama,

?haskar, >sals, Parasram"uria, Maikal, S7Aumar4s etc and the

"ro"osed eI"ansion "lans indicate the high investor con!idence in

the State.

=The state is !ocussing on cluster develo"ment around sectors o!

strategic advantage by develo"ing in!rastructure in and aroundthese clusters. $roth o! eI"ort oriented s"inning and large scale

knitted garment units near ndore, and groth o! Chanderi -

Maheshari "roducts are eIcellent eIam"les o! cluster

develo"ment.

Bhaskar

Industries Ltd.

MP M ;i i 6 ;


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36

MP Ma;ing usinesses 6or;

Process Raw Materia& Spinning WeaveB Knit Processing Stitching1=armentB Appare&5

Advan

tage

MadhyaPradesh

Mar-et

= Climatic Conducive!or cotton"roduction ithlarge varietiesavailable ithin andsurrounding States

= ?eing centrallylocated and ellconnected the ramaterial can also bebrought on shortnotice !rom any "arto! the Country

= >ver #0 s"inningunits

= >ver ;.# millions"indles

= The man"oer hason the obeI"erience in latesttechnology

= Several units areavailable !or"rocurement byinvestors

= >ver #:000

handlooms are

installed in MP

= >ver #3,000 "oer

looms

= ich tradition o!

eaving and knitting

= Several eI"ortoriented "rocessingunits are "resent inthe state hich canbe develo"ed!urther.

= The state has ablend o! both neage and traditional"rocessingca"abilitiesessential to "romotendian "roductsinternationally.

= MP is renoned !orskills o! its "eo"le institching garments.

= Man"oer is elltrained and isca"able o!"roducing orld7class garmentsJa""arels.

= sals, Maikal, ndo7ama etc.

=Madhya Pradesh is "oised to become the neIt destination !or leading teItile com"anies, ho ould !ind market environment conducive

to "ark their investments.

=The state "resents a tremendous o""ortunity by "roviding signi!icant advantages across the value chain.

=The state has several units in a cluster, hich could be acquired and re!urbished to "rovide a quick start to your business.

=n terms o! technical man"oer as ell the state is ell "laced ith over ;8,000 technical graduates and an overall and an overall

!igure o! /30,000 graduates add to the ork!orce every year.

A P f d I D i i


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37

MP:A Preferred Investment Destination

Te7ti&e#&'stersinTh

eState

Avai&a,i&ityo

(RawMateria&

Ma&waRegion

=Madhya Pradesh is "oised to become one o! the leading states in

teItile industry through its cluster develo"ment initiatives. To its

advantage several "oerloomJ handloom units are cluttered

around a small stretch o! land. To "rovide a kick start to your

business there is a signi!icant o""ortunity to target and acquire

these units.

=The clusters also have signi!icant locational advantages.


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38

Offering .1ecific Incentives

=S"ecial ncentives to eadymade $arment, Poerlooms and Made7u" $arment industries9

= ?ene!its under $overnment o! ndia4s schemes such as /pparel Park Scheme" -e=tile Centre Infrastructure ,e


39/56

39

The 6ay 7orward& most

of which are @.7D! a11roved3

Ranbay is investing @.A %44 million for e1anding 1roduction ca1acity ofIndian& raBilian and @. manufacturing utilities3

It has a 3ul rug an ormulation plant at e6as in ,aha Praesh3 In the

current year Ranbay is investing @.A %44 million for e1anding 1roduction

ca1acity of Indian& raBilian and @. manufacturing units3

IPC! 0aboratories is one of Indias leading 1harmaceutical com1anies with a

strong thrust on e1orts3 The ?rou1s 1rinci1al activities com1rise manufacture

and distribution of drugs and 1harmaceuticals3 The 1roducts include tablets&

ca1sules& basic drugs& orals& liuids and inectables3

It has a bul; drugs and formulation unit at Ratlam and a bul; drug facility in

Indore in Madhya Pradesh3

IPC! 0aboratories 1lans to invest *S+ 22 millionto e1and its formulations

ca1acity at 'atlam in ,aha Praesh3 It also plans to invest *S+ 14 million

in the irst phase to set up a ne6 e#port oriente ormulations unit in nore.

$icholas Piramal India 0imited =$PI0> is one of the leading 1harmaceutical and

healthcare com1any with sales of @.A ',4 million in '44*24*3 $PI0 is ran;ed

fourth in domestic formulations sales and second in total domestic

1harmaceuticals sales3

Its Pitham1ur 1lant in Madhya Pradesh is accredited by re1uted organisations li;e

!llergan& $ovartis& .olvay and I#!F& among others3

$icolas Piramal is planning to invest *S+ 45 million to enhan%e its resear%h

an evelopment a%tivitiesbesides strengthening its manufacturing facilities

Docated at the very heart o! ndia, Madhya Pradesh is

the second largest State and is easily accessible !rom

every corner o! the Country.

Madhya Pradesh has a made a lot o! "rogress in thelast cou"le o! years and is "aving ay to be at the

!ore!ront o! the Pharma industry.

Maor "layers such as anbaIy and PC already have

a !oot hold in the State and are on the road to eI"ansion

under the !avourable industrial "olicies and initiatives by

the State $overnment.

Madhya Pradesh is envisaging a "harma cluster atndore and has constituted a board !or ?iodiversity and

li!e sciences under the chairmanshi" o! the Chie!

Minister.

5!!orts are also being made to establish national level

training centres through su""ort o! large industrial

houses o! MP. This ould ensure that the State ill

never be short o! "ro!essional eI"ertise. This is anadded advantage to the investors looking to invest in the

in the State as there ould be a ide availability o!

quali!ied and skilled "ro!essionals at a relative lo

man"oer investment cost.

MP: Offers The Right lend


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44

MP: Offers The Right lend!lbert David is one of Indias leading 1harmaceutical com1anies in the

country with a strong thrust on e1orts3 During the current fiscal year& the

com1any has achieved an ecellent annual sales turnover of @.A %,3**

million> and ran;s *-th out of ''&444 1lus com1anies com1eting in the

Indian 1harma mar;et3The ?rou1s 1rinci1al activities com1rise manufacture and distribution of

drugs and 1harmaceuticals& Dis1osable .yringes& Oral solids etc3

It has a syringes unit at Mandidee1 and a bul; drug facility in Indore in

Madhya Pradesh3

"he %ompan investe over *S+ 222 million in the State an emplos

over 175 people .

0u1in 0aboratories is one of the leading 1harmaceutical and healthcare

com1any with sales of @.A ',4 million in '44*24(3 0u1in is among the few

com1anies from India with global scale manufacturing facilities that

measure u1 to worlds best uality standards3

The focus areas of the com1any includes anti2Tuberculosis&

ce1halos1orins& cardiovascular& anti2asthma& $on2steroidal anti2

inflammatory drugs

Its Mandidee1 1lant in Madhya Pradesh manufactures ce1halos1orins&

lisino1ril etc3 3

"he %ompan investe over *S+ 178 million in the State an emplos

over 900 people .

0u1in 0aboratories is e1anding its manufacturing 1lant at Mandidee1 with

an investment of @.A +3* million3

?y leveraging the eIisting manu!acturing base, a strong

health care system along ith a lo cost resource "ool

Madhya Pradesh has the "otential to !urther develo" the

"harmaceutical industry in the State.

Madhya Pradesh4s netork o! health !acilities com"rises ;#*hos"itals, 3#3 community health centres, ;,:0* "rimary

health centres. t also has 3# yurvedic and # homoeo"athic

hos"itals. The number o! in7"atient beds in Madhya

Pradesh4s hos"itals is /0,83(.

MP has the right blend on !reshers and laterals !or the

"harmaceutical industry. The institutes across the State are

ell equi""ed to "rovided to train man"oer in each domain.

There are Hkey "harmacy colleges in the state su""orted by

Gmedical colleges and ;6management institutes +including

one o! the siI ndian nstitutes o! Management at ndore.

The laterals have eI"erience o! orking in ndia4s leading

"harmaceutical com"anies such as anbaIy, Du"in, @PD,

lbert %avid etc.

=@ R@ Natha #o&&ege o( Pharmacy. Mandsa'r=#o&&ege o( Pharmacy. ndore=Department o( Pharmacy. hopa&=Dr@ $arisingh =o'r Ciswavidya&aya. Sagar= nstit'te o( Pharmacy. =wa&ior=R@K@D@?@ nstit'te o( Sciences Techno&ogy. Mandideep=Shri =@S@ nstit'te o( Techno&ogy Science. ndore=C@N@S@ nstit'te o( Pharmacy. hopa&

Key Pharmacy nstit'tes Pass8o't 2699 St'dents Each "ear

MP: ! Preferred Investment Destination


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45

MP: ! Preferred Investment Destination= Madhya Pradesh is all set to become the neIt "harma hub o! ndia through its cluster develo"ment strategy and government su""ort

to the investors. There are many signi!icant avenues and areas that can be ta""ed !or setting 'p and sca&ing 'p yo'r ,'siness

operations.

ND#ATOR CA!E 1S I5

nd'stria& &and 1per sJ m5 /869

O((ice space rent 1per sJ (t per month5 9@/ 8 *

Residentia& rent 1(or a +.999 sJ (tho'se. per month5

+09 8 6/9

/8star hote& room 1per night5 098*99

E&ectricity 1per -Wh5 9@9H 8 9@*6

Water 1per *999 &iters5 9@+

#OST ND#ATORS ?OR ESTA!S$N= AND OPERATN= SNESS N MP

= To !urther su""ort your business endeavors $overnment o! Madhya Pradesh is develo"ing s"ecialiHed in!rastructure in the !orm o!

S56 ndore. ?eing an industry o! economic im"ortance, the $overnment also "rovides specia& (isca& and non (isca& incentivesto

the units in the state.

Dr'g Research Discovery

Dr'g Research Discovery

Approva& !a'nch

Pre8c&inica&Deve&opment

#&inica&Deve&opment

Man'(act'ring Mar-etingBE7ports

=vailability o! skilledman"oer

= Do attrition rates

= $overnment su""ort

Madhya Pradesh has strengths across the va&'e chain

= Central location

= Do cost o! labour

= S"ecialiHedin!rastructure+S56

= Do o"erating cost

= Do set7u" costs+Dand, building etc

= S"ecialiHedin!rastructure +S56

= Do o"erating cost



= $overnment su""ort

=vailability o! largetarget "o"ulation

= Target "o"ulationith diversegenetic set7u"



= Do cost o! labour

Mar-et ntensity nde7 #omparisons8 A Re(&ection o( !ow #ost o( !iving


46/56

Engineering & Ele%tri%al E(uipments

.ector Profile: Engineering 8 Electrical Eui1ments


47/56

47

Evo&ving !andscape

Madhya Pradesh : =aining Moment'm


.ector Profile: Engineering 8 Electrical Eui1ments

Evolving 0andsca1e


48/56

48

Key deve&opments o,served d'ring post &i,era&iation period

FBetter profitability" spruced up manufacturing setups" aggressi


49/56

49

MP: ?aining Momentum

=Docated at the very heart o! ndia, Madhya Pradesh is the second

largest and the most easily accessible states in the Country. The State

is blessed ith natural ealth, and abundant su""ly o! "oer and

"eo"le.

=The state has the largest "lant o! ndia4s leading engineering com"any,

?harat eavy 5lectricals Dimited, +?5D. The "lant had recorded a

turnover o! &SN 3#; million in /00#70*. The "ro!it be!ore taI as also

high at around &SN 33.:8 million

=n ngineering Clusteris "ro"osed to be established at a cost o! &SN

;* million at $ovind"ura ndustrial 5state near ?5D, ?ho"al. This ill

bene!it about ##* industrial units in the 5state.

= common !acility and necessary in!rastructure ill be develo"ed !or

industries. ndustries ill have s"ecial !acilities "ertaining to engineering

orks and "oer sector related s"ecialiHation since the site ill be in

the vicinity o! ?harat eavy 5lectricals Dimited.

=The "roect ill be develo"ed ith an estimated cost o! &SN ;.*3 billion

ith Central government share o! &SN ;0.': million. The "roect has

been given in "rinci"le sanction. com"any namely ?ho"al Clusters o!

5ngineering >rganiHation Pvt Dtd has been !ormed.

Some O( The S'pporting ?actors Assisting "o'r 'siness

Wo'&d e:

= Skilled Man"oer

= Com"etitive Dabour Cost

= 5nglish S"eaking Po"ulation

= Managerial 5Icellence To %eliver Quality $oods >n Time.

= ndigenous vailability >! a Materials

= Strategic Docation lloing 5I"orts To @ear nd 7;#00;

certi!icate !or its 5nvironment Management System.

hopa&

MP: !n Investment Destination


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50

MP: !n Investment Destination=Madhya Pradesh is emerging as a 5ngineering hub o! ndia. There are many signi!icant avenues and areas that can be ta""ed !or setting

u" and scaling u" your business o"erations.

=To !urther su""ort your business endeavors $overnment o! Madhya Pradesh has is develo"ing s"ecialiHed in!rastructure in the !orm o!

S56 ndore and 5ngineering Cluster.

=?eing an industry o! economic im"ortance, the $overnment also "rovides s"ecial !iscal and non !iscal incentives to the units in the tate.

Ca&'e Proposition MP


51/56

Chemi%als

.ector Profile: Chemicals


52/56

52

Evo&ving !andscape

Madhya Pradesh : The !and o( Opport'nity


.ector Profile: Chemicals

Evolving 0andsca1e


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53

The chemicals and "etrochemicals industry is re!erred to as the RkeystoneR industry as the rest o! the manu!acturing sector

relies on it.

The global chemicals and "etrochemicals market generated total revenues o! &S% ;.8 trillion in /00#, re"resenting a

com"ound annual groth rate +C$ o! 0./1 !or the !ive7year "eriod s"anning /0007/00#.

The ndian chemicals and "etrochemicals market gre by ;0.;1 in /00# to reach a value o! &S% 3/.# billion

The industry is eI"ected to continue its groth "er!ormance ith a C$ o! (./1 in the "eriod o! /00#70(, as against the

global "roected C$ o! 3.#1 !or the same "eriod

ndia has a robust base o! chemicals and "etrochemicals7driven businesses. Though the industry has undergone drastic

changes, ndian chemicals and "etrochemicals share has been continuously increasing on a constant basis.

ndian chemical groth ould be "rimarily driven by s"ecialty chemicals and knoledge chemicals

S"ecialty Chemicals

dhesive sealants

Catalyst

ndustrial gasses

Plastic adhesives

Anoledge Chemicals

gro7chemicals

Pharmaceuticals

?iotechnology

Source' 5lobal Chemicals and Petrochemicals (ndustry 4eport, 6pril 2#, )ata monitor

Evolving 0andsca1e

India ranks twelfth in the world for production of chemicals and petrochemicals by


54/56

54

MP: 0and of O11ortunity

?eing in the center o! the Country MP !orm the heart o! logistic

backbone o! the Country, hich makes it the most "re!erred location

!or chemical business.

Madhya Pradesh has a made a signi!icant "rogress in the last

cou"le o! years and is "aving ay to be at the !ore!ront o! the

chemical industry.

The state currently "roduces around 3*0,000 MT o! basic chemicals.

Chemicals is one o! the "rinci"al industries in Madhya Pradesh in

term o! net value addition ith ;#.;1 share

The Potential groth o! chemical industry in MP is envisaged at *

billion in neIt ;0 years.

The industry is likely to itness a surge in investment once 6S7 &%'

billion 3efinery is setup at Bina by Bharat 0man 3efinery H -he

3eliance ;roup%

2ith a "lant ca"acity o! ' million tonnes, the "roect ould enablesubstantial groth o! donstream chemical units.

The government is likely to im"rove the in!rastructure !acilities in the

area and is also likely to "rovided !iscal and non !iscal incentives in

order to "romote the industry.

nd'stry Potentia&

Darge and groing domestic market "otential due to lo

"er ca"ita consum"tion o! key "etrochemical derivatives

3 kgs. against global average o! ;: kgs. !or "lastics

# kgs. against global average o! /3 kgs. !or

"olymers

$ood -% base ith access to lo7cost, high7quality

human resources

Proven ca"ability !or chemical "rocess develo"ment

Maor ra materials are available ithin the Country or

readily im"ortable

S56s have no im"ort tari!!s and "rovide income taI

concessions

Strategic location9 n the heart o! the high7groth markets

o! ndia, sia and the Middle 5ast

Eibrant donstream industry and a large number o!

manu!acturers "rovide o"tions !or oint ventures, alliances

and acquisitions

Maor o""ortunities lie in all segments9 ?asic, S"ecialty

and Anoledge Chemicals

strong global "resence in the eI"ort o! dyes,

"harmaceuticals and agrochemicals

MP: !n Investment Destination


55/56

55

MP: !n Investment Destination=Madhya Pradesh is "oised to become the neIt Chemical

destination o! ndia through its in!rastructure develo"ment

strategy and government su""ort to the investors. There are

many signi!icant avenues and areas that can be ta""ed !or

setting u" and scaling u" your business o"erations.

Some o( the other s'pporting (actors assisting yo'r ,'siness:

= Central location

= Do set7u" costs +Dand, building etc

= S"ecialiHed in!rastructure

= vailability o! skilled man"oer

= Do o"erating cost

= $overnment su""ort etc.

=To !urther su""ort your business endeavors $overnment o!

Madhya Pradesh has is develo"ing s"ecialiHed in!rastructure

in the !orm o! S56 ndore. ?eing an industry o! economic

im"ortance, the $overnment also "rovides s"ecial !iscal and

non !iscal incentives to the units in the state.

=$roing investor con!idence and don stream industries o!

the ?ina e!ineries are likely to result in mushrooming o!

chemical units in the state.

=n terms o! technical man"oer as ell the state is ell

"laced ith over ;8,000 technical graduates and an overall

and an overall !igure o! /30,000 graduates add to the

ork!orce every year.

Tata Chemicals 0imited is Indias leading manufacturer of inorganic

chemicals3 It also manufactures fertiliBers and food additives3 Incor1orated

in %,5,& the com1any has an annual turnover of over @.A (() mn and is

1art of the @.A %+3'* bn Tata ?rou1& Indias foremost business

conglomerate

TC0 manufactures a wide range of high2uality and com1etitively 1riced

1roducts& including soda ash& sodium bicarbonate& salt& caustic soda and

urea3

It has a 5(&444 MPT! unit at Pitham1ur in Madhya Pradesh3

"he %ompan investe over *S+ :; million in the State an emplos

over 200 people .

$irma is one of the leading chemical com1any with sales of @.A +*-

million in '44*24(3 $irma is among the few com1anies from India with

global scale manufacturing facilities3

The focus areas of the com1any includes soa1s& detergents& soda ash

!l;yle enBene etc3

Its Pitham1ur 1lant in Madhya Pradesh is the largest 1lant in the country

which controls 5-G mar;et share 3

"he %ompan investe over *S+ ;4 million in the State an emplos

over :00 people .

Connecting 7urther


56/56

Connecting 7urther

Department o( nd'stries www@mpind'stry@org

ndore SE> www@seindore@com

Madhya Pradesh State nd'stria& Deve&opmenta& #orporation www@mpsidc@com

=overnment o( Madhya Pradesh www@mpgovt@nic@in

Madhya Pradesh State E&ectronics Deve&opment #orporation www@mpsedc@com

7 industry

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