invest rajasthan_ auto and auto components

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No document(s) Contact BIP Bureau of Investment Promotion [email protected] investrajasthan.com +91 141 2227274 +91 141 2227812/13 +91 141 2227506 Sector Highlights Rajasthan is host to over 100 existing & proposed automotive & auto parts manufacturing companies Investment of INR 11 billion by HSCI till date & may go up to INR 20 billion Excellent accessibili ty with western & northern automotive markets Expected investment of INR 21.5 billion in dedicated Japanese Home Enquiry About BIP Why Rajasthan Know Rajasthan Sectors Doing Business Success Stories Downloads Contact Us  Home > Sectors > Auto & Auto C omponents Auto & Auto Components Overview Raj asthan's origin as an auto manufact uri ng hub dates back t o1982 when Ashok Leyland 's truck c hassis assembl y plant was set up in Alwar . Today, Raj asthan is rapidly developing i nto a key automotive hub with Bhiwadi, Neemrana and Pathredi in Alwar district being host to over 100 automotive and auto parts manufacturing companies (existing and proposed). Key players such as Honda Siel Car s, Ashok Leyland, Eicher, Caparo, F ederal Mogul, Continental Engines, Gapai, RPSC, Nissin, Bestex, Havells, Shriram Pistons & Rings, etc. have already set up their manufacturing base in the State. Honda Motorcycle & Scooter India (HMSI) is Honda Motor's wholly owned two- wheeler manufact uri ng subsidiar y in India. HMSI's second plant in India in located in at the Tapukara Industrial Area and has become operational from July 2011 with annual production c apacit y of 0.6 million units. HMSI aim s t o double the annual production capacity of this plant to 1.2 million units in Agro Processing / Animal Husbandry Auto & Auto Components Education IT/ITeS Medical & Health Mineral based Solar Energy Tourism Other Sectors PPP Projects Opportunities

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Page 1: Invest Rajasthan_ Auto and Auto Components

8/11/2019 Invest Rajasthan_ Auto and Auto Components

http://slidepdf.com/reader/full/invest-rajasthan-auto-and-auto-components 1/7

No document(s)

Contact

BIPBureau of Investment

Promotion

[email protected]

investrajasthan.com

+91 141 2227274

+91 141 2227812/13

+91 141 2227506

Sector Highlights

Rajasthan is host to

over 100 existing & 

proposed automotive& auto parts

manufacturing

companies

Investment of INR 11

billion by HSCI till

date & may go up to

INR 20 billion

Excellent accessibility

with western & 

northern automotive

markets

Expected investment

of INR 21.5 billion in

dedicated Japanese

Home Enquiry

AboutBIP

WhyRajasthan

KnowRajasthan

SectorsDoing

BusinessSuccessStories

DownloadsContact

Us

 

Home > Sectors > Auto & Auto C omponents

Auto & Auto Components

Overview

Rajasthan's origin as an auto manufacturing hub dates back to1982 when

Ashok Leyland's truck c hassis assembly plant was set up in Alwar.

Today, Rajasthan is rapidly developing into a key automotive hub with

Bhiwadi, Neemrana and Pathredi in Alwar district being host to over 100

automotive and auto parts manufacturing companies (existing and proposed).

Key players such as Honda Siel Cars, Ashok Leyland, Eicher, Caparo, Federal

Mogul, Continental Engines, Gapai, RPSC, Nissin, Bestex, Havells, Shriram

Pistons & Rings, etc. have already set up their manufacturing base in the

State.

Honda Motorcycle & Scooter India (HMSI) is Honda Motor's wholly owned

two-wheeler manufacturing subsidiary in India. HMSI's second plant in India in

located in at the Tapukara Industrial Area and has become operational from

July 2011 with annual production capacity of 0.6 million units. HMSI aims to

double the annual production capacity of this plant to 1.2 million units in

Agro Processing / Animal

Husbandry

Auto & Auto Components

Education

IT/ITeS

Medical & Health

Mineral based

Solar Energy

Tourism

Other Sectors

PPP Projects

Opportunities

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Zone in Neemrana

Special Auto & 

Engineering Zone in

Bhiwadi

303 acre of land

allotted to 22

Japanese companies

March 2012.

Nippon Pipe India Private Limited, part the Japan-based Nippon group, is

sett ing up an INR 1.9 billion steel tube components project for the automobile

industry in the Japanese zone at Majrakath, Neemrana.

Auto Clusters:

Promising auto cluster of Bhiwadi

Bhiwadi region spread over approx. 5300 acres comprises of 3 industrial

areas - Bhiwadi, Chopanki and Khushkera.

Bhiwadi has emerged as a promising automotive cluster in Rajasthan, with

the setting up of Honda Siel Cars India Ltd. factory and the manufacturing

facility of Honda Motorcycle and Scooter India (HMSI).

In close proximity to the manufacturing cluster of NCR allowing easy access

to key auto manufacturers/OEMs/component manufacturers and existing

large talent pool base.

Located just 55 km away from the Indira Gandhi International Airport, New

Delhi; 200 km from State Capital Jaipur; 90 km from Alwar; 40 km from

Gurgaon and only 5 km from NH-8 (Delhi-Jaipur highway).

In Bhiwadi, a special Auto & Engineering Zone has also been developed in

the Pathredi Industrial Area and another spec ial zone is being planned.

To address availability of trained manpower, particularly for Shop-floor

Operations, a Tool Room & Training Centre is being planned over 10 acres.

BMA (Bhiwadi Manufacturing Association) is the representative body of all

the Industrial Units locat ed in Bhiwadi, Chopanki, Khushkhera, etc.

Neemrana: a dedicated Japanese Park in India

RIICO has signed a MoU with JETRO (Japan External Trade Organization)

whereby several Japanese c ompanies shall set up their industrial units at

Neemrana Industrial Area, in Alwar district.

The region is equidistant from Delhi and Jaipur and will also be a part of the

proposed Delhi Mumbai Industrial Corridor (DMIC), making it a strategic

location for these companies.

RIICO has so far allotted 303 acres of land to 22 Japanese companies in

this area.

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Several multinational companies such as Nissin, Mitsui, Nippon, Disking,Mitsubishi & Dykie colour have got land allotted in this industrial area for

establishing their units and some are already operational.

An investment of around INR 21.5 billion is expected on the already allotted

land creating employment opportunities for over 3000 people.

Why Locate in Rajasthan

Market Attractiveness - Easy access to one of the key auto cluster

Strategic location of Rajasthan in India allows accessibility to both western

and northern automotive markets, which together account for over 57 per

cent of total automobile sales in the country.

India's 60 per cent of passenger car production, 55 per cent of motor cycle

production and 25 per cent of tractor production is concentrated in the

National Capital Region (NCR) which is located within a radius of 200 km from

District Alwar, the automotive capital region of Rajasthan.

Close proximity to the NCR region also allows for easy access to the existing

auto component supplier network and logistics facilities there.

Land and Infrastructure- Easy power & land availability at low cost

Rajasthan's c ompetitive advantage lies in its power availability, relatively low

energy & land cost and availability of large contiguous land parcels which is

generally a prerequisite for any automotive OEM (Original Equipment

Manufacturer) to set up base.

A readily available Land Bank system is in place. Also, cont inuous new

acquisition of land is underway for development of industry c lusters by RIICO.

Human Resources - Skilled manpower at relatively low cost

The State has a comparative advantage on labour cost compared to its peer

states (~20-30% lower). Proximity to NCR helps in access to industrial labour

and managerial talent.

There are approximately 1,300 technical institutions in the State with intake

capacity of 210,000. Total intake capacity of engineering, polytechnics and

ITIs in Alwar district is 2930.

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The table below provides human resource availability in Alwar district:

 Type of Institute Annual Intake

 Engineering Colleges 1620

 Polytechnic Colleges 290

 ITIs 1020

Industry strength - Strong industrial base

The auto industry in Rajasthan is present across the entire industry value

chain. The auto ancillary segment in the State has seen more investments as

compared to other major states.

Rajasthan has become a prominent base for auto manufacturing with the

establishment of a growing auto cluster in Alwar district and Honda's facility

at Bhiwadi.

Policies

Rajasthan Investment Promotion Scheme (RIPS) 2010:

For setting up of new enterprise, enterprises going for expansion,

modernization and diversification, and projects set-up for common social

good, RIPS 2010 was announced. All kinds of investments a re eligible under this

scheme. The new scheme also simplifies the procedure for grant and

disbursement of s ubsidy, and introduces transparency in system, by introducing

the system of online disbursement of subsidy.

Subsidies

Investment subsidy and Employment generation subsidy have been

introduced.

The maximum amount of subsidy shall be 50% of the tax deposited, i.e.

VAT and CST or SGST (whenever introduced).

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RIPS 2010 provides investment subsidy to all eligible investors of an amount

equal to 30% of the tax deposited, without any linkage with payment of 

interest and wages.

Employment generation subsidy has been announced @ 10,000 per

employee/annum. For women, SC/ST and persons with disability this

amount has been enhanced to 12,000 per employee/annum.

For entrepreneurs belonging to Women, SC/ST, or person with disability

category, an additional investment subsidy amounting to 10% of the taxes

deposited has been kept.

These subsidies have been announced for 7 years, but to give boost to the

MSMEs in the not ified area, time limit has been extended to 10 years.

Procedure for subsidy disbursement has been simplified by introducing a

Challan for Adjustment through Treasury.

Exemption from Taxes

The RIPS 2010 scheme announces exemption from payment of various taxes

under the following categories of investment:

1. New Enterprise and Project for Common Social Good

2. Investment made for Modernizat ion/Expansion/Diversification

3. Sick Industrial Enterprise for its revival

The type, extent and period of exemption are as follows:

In case of Enterprises going for modernization/expansion/diversification, t he

exemption from payment of tax(es) shall be allowed only to the extent to

which additional tax liabilities accrue due to utilization of additional capacity

created after modernization/expansion/diversification.

Key Players

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Recent Developments

Honda Motor's wholly owned two-wheeler manufacturing subsidiary in India,

Honda Motorcycle & Scooter India (HMSI), is building its second motorcycle

production plant in the country in Rajasthan with an annual production

capacity of six lakh units. Honda Motorcycles & Scooters has plans to make

investment of INR 5 billion in its facility at Tapukara, Alwar and which could

go up to INR 11 billion

Honda Siel Car India had an initial investment plan of INR 10 billion. Total

investment till date is INR 11 billion and may go up to INR 20 billion

Nippon Pipe India Private Limited, part of the Japan-based Nippon group, is

setting up an INR 1.9 billion steel tube components project for the

automobile industry in the Japanese zone at Majrakath, Neemrana.

"India is the sec ond largest motorcyc le market in

the world. Rajasthan emerged as the most suitable

state for locating Honda's second manufacturing

facility based on the proximity to north and westmarkets and t he existing plants."

V. Sridhar

Vice President (Manufacturing)

Honda Motorcycle & Scooter India

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O fficial Websi te: Bureau of Inves tment Promotion, GoR

Best viewed using IE 7 or Firefox 3.0 and above. Screen Resolution 1024 x 768

"We, as Honda, would like to strongly recommend

Rajasthan to all potential investors... the State

which is eager & willing to provide all help to attract

investments and get noticed as an industrialized

State.

Mr. N. K. Goila

Ex-Vice President and Ex-Director, Honda Siel Cars

India

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