Government of Andhra Pradesh

Shri. N.Kiran Kumar ReddyHon’ble Chief Minister of Andhra Pradesh

Dr. J. Geeta ReddyMBBS, MRCOG (London), MACOG, FAGO

Hon’ble Minister forMajor Industries

Government of Andhra Pradesh

Welcomes

Andhra Pradesh : Geographic Profile

• Known as Gateway of South EastAsia

INDIA

• AP is the fourth-largest state in Indiaby area.

• Covering an area of 275,068 sq km

• Population – 82 Mil

• 3 Major rivers – Godavari, Krishna,

Andhra Pradesh

INDIA• 3 Major rivers – Godavari, Krishna,

Pennar. 9 Interstate rivers, 28 otherminor rivers

Andhra Pradesh : Geographic Profile

ANDHRA PRADESHANDHRA PRADESH

VizagVizag

KakinadaKakinada

VodarevuVodarevu

Bay of BengalBay of Bengal

HYDERABADHYDERABAD

KrishnapatnamKrishnapatnam

ChennaiChennaiBangaloreBangalore

ChennaiChennai

INDIAINDIA

Economy OverviewAndhra Pradesh – An Investment destination

• AP is among the top 3 states of the Countryfor industrial investments.

• 2nd Largest Mineral Storehouse of India

• Second longest coastline of 974 kms

• 85 out of 500 top global corporates arepresent in the state.

• A Unique State having huge agricultural and• A Unique State having huge agricultural andhorticulture production

• Investor-friendly and proactive policies – ratedone of the best in the country

Advantage Andhra Pradesh….

• Large pool of skilled workforce with 26 Universities, 705Engineering Colleges turning out 2,79,752 Engineers/year,280 polytechnics, 800 ITIs

• Leading state in several Agro-based industries – Sugar,• Leading state in several Agro-based industries – Sugar,Edible Oil, Sea foods, cotton, fruits and vegetables

• Bulk Drug Capital of India accounting for 1/3 of India’s bulkdrug production – 2nd largest exporter

• Leading producer of Cement with 40 mil tons production(capacity is going to be increased to 52 mil in 3 years)

• The State stands in No.1 position in Paper production inthe country (doubling its capacity in the next 3 years)

• The state is the 3rd leading producer of cotton in thecountry

• The State is an important producer of Iron and steel.

• AP is the granite powerhouse of India

• It has distinction of having an exclusive Aero space SEZ and Helicopter cabinmanufacturing facility

Advantage Andhra Pradesh….

manufacturing facility

• A.P. is the first to sign MoU with HPCL for Petroleum. Chemicals andPetrochemicals Investment Region (PCPIR) between two industrialized regionsVisakhapatnam and Kakinada spread over an area of 604 Sq.KMs

• Globally recognized and fastest growing base for IT & IT Enabled Services

• A.P is known as Tourist and business traveler’s paradise• A.P is known as Tourist and business traveler’s paradise

• The State is in the forefront in building its intellectual capital with well knowninstitutions in the world and centres of excellence for training

• Good quality of life with wide ranging facilities for leisure, culture and recreation

Infrastructure facilities in APInfrastructure facilities in AP

Visakhapatnam

Hyderabad

(International Airport)

Existing Airports (6)

Upcoming Airports (7)Warangal

RamagundamNizamabad

Infrastructure in AP - Airports

Visakhapatnam

Vijayawada

Rajahmundry

Puttaparthy Hyderabad International Airport – First Greenfield

Airport in Asia.

Kadapa

Nellore

Ongole

Tadepalligudem

Tirupati

PuttaparthyAirport in Asia.

Existing Visakhapatnam and Tirupati Airportsare being upgraded to International Airport

Existing Chennai International Airport is just onehour road drive from Tada Industrial Park.

Existing Bangalore International Airport is justone and half hour drive from Hindupur IndustrialGrowth Centre, Anantapur Dist.

Chennai

Bangalore

(International Airport)

(International Airport)

Nellore

Visakhapatnam

Largest Cargo handlingport in the country

(65 MTPA)

Infrastructure in AP - Ports

Kakinada (10 MTPA)

Gangavaram

Nizampatnam (Proposed 15MTPA Capacity)

Krishnapatnam (15 MTPA)

Deepest portin India and

dedicated forIndustries

(200 MTPA)ultimate

Machilipatnam (20 MTPA)

Krishnapatnam (15 MTPA)

Operational (4)

Coming-up (2)

• Andhra Pradesh is considered to be the second-highest cargo handling state in India.• The state has one major port at Visakhapatnam, two intermediate ports and 11 minor

ports within the state• One more major port is planned in AP by Government of India

SEZs in Andhra Pradesh

• SEZs notified. --- 74 (Highest in the country)

Special Economic Zone – Tax Free Industrial area deemed to be outsidecustoms territory of INDIA

• Employment ( Projected) --- 2.5 Mil persons

• Total Projected Investment --- US$ 15393 Mil

• Total land for 74 notified SEZs --- 27,173.05 Acres

SEZs in Operation

SEZs in operation : 32SEZs in operation : 32Employment (Generated so far) : 1,24,796 persons

Direct : : 100789 personsIndirect: : 24007 persons

Investment made : US$ 3.16 BilExports from SEZs (2010-11) : US$ 2.71 Bil

Infrastructure in AP - Power

• The State has been awarded as the Best PowerUtility in the country for 2010

• Total installed capacity in AP is 15,768 MW –Second Largest Power utility in the country

• Capacity addition of 5000 MW by June 2014 and17,000 MW planned by June 2015

• Power Tariff for industrial consumers is one of thelowest in the countrylowest in the country

Source :Economic Survey 2010-11

Strong R & D Base

• Defence Research Development Organisation (DRDO)

• Defence Electronics Research Institute

• Defence Metallurgical Research Institute

• Indian Institute of Chemical Technology (IICT)• Indian Institute of Chemical Technology (IICT)

• Centre for Cellular and Molecular Biology (CCMB)

• National Institute of Nutrition (NIN)

• Centre for DNA Fingerprinting and Diagnostics (CDFD)

• International Crop Research Institute on Semi Arid

Tropics (ICRISAT)

• ICICI Knowledge Park

• Central Institute of Tool Design• Central Institute of Tool Design

• DuPont R&D Centre

• NEKTAR R&D Centre

• National Technical Research Organization (NTRO)

Quality of Life

• World class Tourist centres

• Star Hotels, International Schools, Educational andTraining Institutes, World-class Shopping Malls, FoodCourts

• Leisure & Recreation – Monuments, Heritage, Arts &Crafts, Silks & Handlooms, Cuisine, Fairs & Festivals,Temples, Shrines, River Line, Sea Beaches, Resorts,Pilgrim Centres, Multiplex, Imax, Zoo Parks, Valleys, Waterfalls, Irrigation Dams, Buddhists Centres, Cultural centres

• World-class Housing

Andhra Pradesh Natural Resources

AP Natural Resources – Agri based

AP’s contribution to NationalProduction

Rice, Citrus, Chilly, Oil FirstRice, Citrus, Chilly, OilPalm, Prawn, Egg, Broiler,Meat

First

Fish, Mango, Tomato &Coriander

Second

Pomegranate, Tapioca, Third

Cotton, Milk, Tapioca,Lady Finger & Grapes

Fourth

Onions, Banana FifthOnions, Banana Fifth

Pulses 10%

Marine exports 40%

Level of Food Processing 10% ; Second

Availability of abundant Coal

Second largest store house of mineralresources in India

AP Natural Resources – Mineral

Coal in Singareni ColleriesCoal mines

Lime stone (34%)

Uranium

Availability of abundant Coaldeposits in entire south

India and huge Natural Gasresources

Uranium

Granite – Granite powerhouse of India (40%)

Barytes-(96%)

Bauxite –- World ‘s singlelargest Bauxite deposit inVIzag (40%)

Andhra Pradesh Industrial Infrastructure Corporation

Date of incorporation 26-09-1973

No. of Industrial Parks 396

Land Bank (in acres) 1,36,389 Land Bank (in acres) 1,36,389Govt. 85880Patta 50509

Available land for allotment (in acres) 27413(incl. UDL)

Core Functions

Identification of potential sites for industrial areas.

Acquisition/Alienation of lands for Industrial Parks. Acquisition/Alienation of lands for Industrial Parks.

Providing infrastructure facilities in Industrial Parks/IT Parks/BiotechParks/Apparel Parks/SEZs with its own engineering divisions.

Allotment of land/plots/sheds for various industries.

Identification and development of infrastructure projects under PPP mode.

APIIC is spread over in all districts of Andhra Pradesh with 15 Zonal Offices

Strengths of APIIC

APIIC owns 396 Industrial Parks which includes sector specific IT,Biotechnology, Apparels, Pharmaceuticals, Autonagars, Automotives andSpecial Economic Zones.

APIIC manpower includes Asset Management, Engineering, Finance,Legal, Internal Audit, Quality Control, Administration etc.

APIIC exercises the local authority powers under AP Panchayat Raj and APIIC exercises the local authority powers under AP Panchayat Raj andMunicipal Acts.

• APIIC has full fledged Engineering wing• Provides Infrastructure facilities to all IPs/SEZs/IT Parks• Services include provision of :

• Internal Roads and External Connectivity

SERVICES OFFERED BY APIIC

• Internal Roads and External Connectivity• Water Supply• Power Supply• Storm Water Drains & Internal Drainage arrangements• Buildings works• JV Projects• CETPs and STPs• Obtaining Environmental Clearance• Obtaining Environmental Clearance

To provide confidence to the investors, APIIC also takes up equityparticipation in their projects

PPP Projects

APIIC has pioneered PPP projects in the State and so far has participatedin 21 JV Companies which include

HITEC City, Madhapur – With L&T Infocity Ltd.

JN Pharmacity, Parawada – With Ramky Infrastructure Ltd.

IT Park, Vijayawada – with L&T Infocity.

Visakhapatnam Industrial Water Supply Project Visakhapatnam Industrial Water Supply Project

Mind space – with K Raheja Corporation.

Convention Center, Golf &Villas –with Emmar Properties.

NATIONAL INVESMENT MANUFACTURING ZONES

APIIC has proposed for establishment of 2 National Investment ManufacturingZones at

1.Medak District2.Chittoor District

The brief details of proposed 2 NIMZs are as follows:

NIMZ in Area of NIMZ Cost to Develop

NIMZ (Rs.in Cr)

Likely inflow of

Investments

(Rs.in Cr)

Likely

Employment

Estimated period of

Development of

NIMZ

Medak District

(Nayakal, Raikod &

Jarasangam Mandals)

5260 Ha 10465 43000 765000 5-7 yrs

Chittoor DistrictChittoor District

(Valmikipuram

Mandal)

5040 Ha 10700 31050 454000 5-7 yrs

China

Top Ranked Destinations by Foreign Investors

Doing Business in India

Poland

Germany

Brazil

India

US

China

•Third most attractive FDIlocation in the world

•India has topped as theChoice for EuropeanInvestors

•Large base of Skilled

0 0.5 1 1.5 2 2.5

Mexico

Canada

UK

Ausralia•Large base of SkilledManpower

•Cost competitiveness

•Low labour costs

Doing Business in Andhra Pradesh

A.P –The Manufacturing and Knowledge Hub

• First state in India to have a lawfor Industrial Clearances in timebound manner

• A.P has been selected as Model

Time taken to start a business (In days)

35 41 43 4551 52

• A.P has been selected as ModelState for e-biz project by GOI

• Peaceful Industrial Relations

• Large labour force in the 15 to 49age group

• Low labour costs

Mah TN A.P Kar WB ND

Ease of doing business - Top 5 states

Pjb A.P Ori Del guj

Opportunities Andhra PradeshOpportunities in Andhra Pradesh

Food Processing Industry

• Domestic market expected to grow from current size of USD 181 billion to 258 billion by2015 (increase of 40%)

Key contributors for increase in Demand Key factors for investments

Increase in levels of IncomeRise in household consumption

• Low cost of Production• Low cost of labour

1188

Average Price in USD/Mt

- -

India vs World World India

Rise in household consumptionIncreasing urbanizationorganized retailChanging lifestyleMore demand of processed foods due to

increased female work force

• Low cost of labour• Low cost of inputs

669805

455 455 463

911

227

863

630

444288 288

222 175 155

FreshGrapes

Peas Guavasand

mangoes

Banana Lemons Apples Tomatoes Onions

• Hyderabad is the Bulk Drug Capital of India accounting for one-third of the production.

• State produces a majority of 500 basic drugs produced in thecountry

Pharma Industry

country

• Second leading exporter of bulk drugs

• Over 2500 pharma companies located in AP

• A.P is the leading centre for Biotechnology• Vaccine Capital of India• The industry accounts for 43 per cent of the total biotech revenue

generated by companies in South India (US$ 1104 million).generated by companies in South India (US$ 1104 million).

• Opportunities• Manufacturing of Bulk Drugs & Pharma• Generics• Pharmaceutical Formulations• Contract R&D

• The state is the largest producer of cotton – fine and superiorstaples

Textiles Industry

• Indian Textiles economy is at $ 62 Bil and is expected to reach $ 110Bil by 2015

• Opportunities• Spinning• Weaving• Garments

PARTICULARS 1998 2011 INCREASE

No. of IT companies 194 1259 6.5 times

Employment 12,000 2,79,438 20 times

Exports ($ million) 56.8 8500 110 times

IT & ITES

Exports ($ million) 56.8 8500 110 times

Built-up Space (sft) 200,000 40 million 200 times

5224.4

62007000

8500

5000

6000

7000

8000

9000

In Million US$IT Exports in AP, 1995-96 to 2010-11

12 26.856.8114.8211.8401.4

581.4733.61005

1654

2504.2

3716.4

0

1000

2000

3000

4000

5000

95-

96

96-

97

97-

98

98-

99

99-

00

20

00-

01

20

01-

02

20

02-

03

20

03-

04

20

04-

05

20

05-

06

20

06-

07

20

07-

08

20

08-

09

20

09-

10

20

10-

11Source: STPI Hyderabad

Investment Opportunities - Energy

Demand for power in AP is expected to

grow at 9.5% CAGR over next five years

Opportunities:

Generation, transmission and

strengthening of distribution network

AP State has a high wind energy potential AP State has a high wind energy potential

Solar and other Non conventional energy

Investment Opportunities – Infrastructure ( in PPP mode)

PortsPorts

Airports

LNG TerminalsLNG Terminals

Some further Promising areas for Collaboration

• Automobile Sector

• Telecommunications

• Energy both conventional and Non-Conventional• Energy both conventional and Non-Conventional

• Biotechnology, bio-simulars and bio-medical equipment

• Petro chemical, chemical and Petroleum industries

• Aviation, avionics and defence industry

Highlights of AP’s Industrial Policy (201-15)

• AP offers a wide range of fiscal and policy incentives for businesses

• Special Package of Incentives to MSMEs

• Attractive Incentives include : Concessions in Taxes, Power Cost,

• PROJECTS WITH AN INVESTMENT EXCEEDING US$ 50 Mil [US$ 25 Mil FOR

TEXTILE & FOOD PROCESSING) OR 2000 EMPLOYMENT POTENTIAL,

WOULD BE TREATED AS MEGA PROJECTS AND THE GOVERNMENT CAN

CONSIDER A SPECIAL PACKAGE OF INCENTIVES ON CASE TO CASE

BASIS

• Attractive Incentives include : Concessions in Taxes, Power Cost,Land, stamp duty etc

Summing up

The state of Andhra Pradesh has

Quality infrastructure

Enabling environment

Proven credentials of economic and industrial development

Assured water, power and land for Japanese

Investors

Government of Andhra Pradesh welcomes the investors

to partner with us to tap the infinite opportunities

available in the State.

Thank you

Please Stay Connected atvcmd@apiic.invcmd@apiic.in

Phone: +914023233596+914023230234

Fax : +914023240205Web : www.apiic.in