kerala march 2014

7/25/2019 Kerala March 2014

1/70


2/70


3/70

Source: Economic Review of Kerala 2012, http://www.emergingkerala2012.org/infrastructure.php, News Articles

Cultural diversity andwell-developed tourism

sector

Kerala is known as Gods own country. It is one of the few states to have marketed itsnatural beauty successfully to the leisure tourism sector. The statesunique heritage andcultural diversity have helped attract tourists from the world over.

Highest literacy and sex

ratio

Kerala has the highest literacy rate (93.9 per cent) and sex ratio (1084 women for 1000

men) in India. The literacy rate for the rural population is also the highest in the state.

Largest recipient offoreign remittances in

the country

Kerala received NRI remittances of US$ 13.8 billion during the six months ended June2013. The remittances received are much higher than the US$ 10.7 billion and US$ 10.4billion received during 2012-13 and 2011-12, respectively.

Ranks second inInvestment Climate

Index

Kerala ranks second in the Investment Climate Index below Karnataka according to apolicy research working paper by the World Bank. The state came on second position dueto itsworld class infrastructure and well trained human resource pool.


4/70

Source: Economic Review of Kerala - 2012, Kerala IT Policy 2012, http://www.igtpl.com/Note: TEUs = Twenty-foot equivalent unit

Strong agriculturalsector

Kerala is a leading agricultural state in the country and the largest producer of rubber,pepper, coconut and coir. In 2011-12, the state contributed 87.3 per cent and 79.1 percent to Indiastotal rubber and pepper production, respectively.

First internationalcontainer transhipment

terminal

Kerala has the first international transshipment terminal in India, having a design capacity

of around 4 million TEUs and providing better connectivity between Kerala and other portsin India.

Presence of world-classtechnology park

Kerala has also been promoting knowledge-based industries such as IT/ITeS, computerhardware and biotechnology. It is the first state having a technology park with CMMI level4 quality certification and a world-class IT campus in Thiruvananthapuram.

Best bandwidthconnectivity

Kochi, a city in Kerala, is one of the two spots in India having landing points for submarinecables (SEA-ME-WE3 and SAFE), making it one of the best states in terms of bandwidthconnectivity.


5/70

Source: Economic Review of Kerala - 2012, Tourism Vision 2030, www.keralatourism.com

GSDP: Gross State Domestic Product

Growing demand

High economic growth

Keralas GSDP rose at a compoundannual growth rate (CAGR) of 13.8per cent between 2004-05 and2011-12.

Kerala is the leader in rubberproduction; high demand of rubber

has opened up immenseopportunities for the state in therubber industry.

Leader in tourism industry

Kerala has emerged as thecountrys number one traveldestination as per Googles SearchTrends for India in 2012.

Foreign and domestic touristarrivals increased by 7.4 per cent

and 8.3 per cent, respectively, over2011-12.

Policy and infrastructuresupport

Kerala has a wide range of fiscal and

policy incentives for businesses underthe Industrial and Commercial Policyand has well-drafted sector-specificpolicies.

Besides, it has a well-developedsocial, physical and industrialinfrastructure and virtual connectivity;and has good power, airport, IT andport infrastructure.

Rich labour pool

Kerala has a large base of skilledlabour, making it an idealdestination for knowledge-intensivesectors.

The state has the highest literacyrate in the country.

It has a large pool of semi-skilledand unskilled labourers.

The state has over 153 engineeringcolleges.

2012

Foreigntourist

arrivals:

0.8 million

2021E

Foreigntourist

arrivals:

3.0 million

Advantage:Kerala


6/70

Kerala is located along the coastline to the extreme south-

west of the Indian peninsula, flanked by the Arabian Sea onthe west and the mountains of the Western Ghats on theeast. The state has a coastline of 580 km.

Malayalam is the most commonly spoken language. Hindi,English and Tamil are the other languages used.

Kochi, Kozhikode, Kollam, Thrissur, Alappuzha, Palakkad,Thalassery, Ponnani and Manjeri are some of the key cities

in the state.

There are 44 rivers flowing through Kerala, the major onesbeing the Periyar (244 km), the Bharathapuzha (209 km)and the Pamba (176 km).

Sources: Kerala at a glance, Government of Kerala website, www.kerala.gov.in*Provisional dataCensus 2011

Parameters Kerala

CapitalThiruvananth

apuram

Geographical area (sq km) 38,863

Administrative districts (No) 14

Population density (persons per sqkm)*

859

Total population (million)* 33.38

Male population (million)* 16.02

Female population (million)* 17.36

Sex ratio (females per 1,000 males)* 1,084

Literacy rate (%)* 93.9

Source: Maps of India


7/70

Parameter Kerala All-States Source

Economy 2011-12 2011-12 2012-13

GSDP as a percentage of all statesGSDP

3.8 100 100Planning Commission Databook, 2013,

current prices

Average GSDP growth rate (%)* 14.9 15.9 15.6**Planning Commission Databook, 2013,

current prices

Per capita GSDP (US$) 1,894.4 1,434.8 1,414.7Planning Commission Databook, 2013,

current prices

Physical infrastructure

Installed power capacity (MW) 3,856.4 228,721.7Central Electricity Authority, as of

September 2013

Wireless subscribers (No) 31,000,066 870,582,006Telecom Regulatory Authority of India, as

of September 2013

Broadband subscribers (No)*** 1,707,000 15,360,000 Telecom Regulatory Authority of India, asof September 2013

National highway length (km) 1,542 79,116Ministry of Road Transport & Highways, as

of March 2013

Major and minor ports (No) 1+17 13+187 Indian Ports Association

Airports (No) 3 133 Airports Authority of India

*Calculated in Indian rupee terms, **2004-05 to 2012-13, ***As of December 2012


8/70

Parameter Kerala All-States Source

Social indicators

Literacy rate (%) 93.91 74.0 Provisional dataCensus 2011

Birth rate (per 1,000 population) 14.9 21.6SRS Bulletin (www.censusindia.gov.in),

September 2013

Investment

FDI equity inflows (US$ billion) 0.95* 201.9Department of Industrial Policy & Promotion,

April 2000 to August 2013

Outstanding investments (US$ billion) 45.3 2,658.2 CMIE (2012-13)

Industrial infrastructure

PPP projects (No) 33 881 www.pppindiadatabase.com

SEZ (No) 24 392 Notified as of July 2013, www.sezindia.nic.in

PPP: Public-Private Partnership, SEZ: Special Economic Zone, SRS: Sample Registration System*Including Lakshadweep


9/70

At current prices, Keralas GSDP was about US$ 65.8billion over 2011-12.

The states GSDP rose at a CAGR* of 14.9 per centbetween 2004-05 and 2011-12.

Growth was mainly driven by services and tertiary sectors.

Source:Economic Review of Kerala, 2012,

http://planningcommission.gov.inNote: GSDP - Gross State Domestic Product*CAGR calculated in Indian rupee terms

GSDP of Kerala at current prices(US$ billion)

26.5 30.9

34.0

43.5 44.2

48.9

59.165.8

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

CAGR14.9%*


10/70

At current prices, KeralasNSDP was about US$ 58.6 billionduring 2011-12.

NSDP expanded at a CAGR* of 15.1 per cent between2004-05 and 2011-12.

Source:Economic Review of Kerala 2012http://planningcommission.gov.in

Note: NSDP - Net State Domestic Product*CAGR calculated in Indian rupee terms

NSDP of Kerala at current prices(US$ billion)

23.3

27.229.8

38.339.2

43.5

52.5

58.6

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

CAGR15.1%*


11/70

The states per capita GSDP was US$ 1,894.4 over 2011-12 compared to US$ 807.1 during 2004-05.

Per capita GSDP increased at a CAGR of 14.0 per centbetween 2004-05 and 2011-12.


*CAGR calculated in Indian rupee terms

GSDP per capita of Kerala at current prices(US$)

807

932 1,016

1,292 1,301

1,4301,716

1,894

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

CAGR14.0%*


12/70

Keralas per capita NSDP was US$ 1,688 over 2011-12compared to US$ 709.0 during 2004-05.

Per capita NSDP increased at a CAGR* of 14.2 per centbetween 2004-05 and 2011-12.



NSDP per capita of Kerala at current prices(US$)

709 819893

1,136 1,155

1,270

1,524

1,688

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

CAGR14.2%*


13/70

Over 2011-12, the tertiary sector contributed 64.5 per centto the states GSDP at current prices, followed by thesecondary sector (20.4 per cent).

The tertiary sector grew at an average rate of 16.7 per centbetween 2004-05 and 2011-12. Growth was driven by trade,hotels, real estate, finance, insurance, transport,

communications and other services.

The secondary sector rose at an average rate of 13.6 percent between 2004-05 and 2011-12. Growth was led bymanufacturing, construction and electricity, gas & watersupply.

The primary sector expanded at an average rate of 12.7 percent between 2004-05 and 2011-12.

Source:http://planningcommission.gov.in

CAGR calculated in Indian rupee terms

GSDP composition by sector

17.9% 15.1%

22.5%20.4%

59.6% 64.5%

2004-05 2011-12

Primary sector Secondary sector Tertiary sector

CAGR*

12.7%

16.7%

13.6%


14/70

Source: Economic Review of Kerala, 2012

P: Provisional, *Million nuts

CropAnnual production (P)

in 2011-12 (metric tonnes)

Tapioca 2,567,953

Rubber 788,940

Rice 568,993

Banana 514,054

Other plantations 330,634

Arecanut 121,623

Coffee 68,175

Tea 57,903

Pepper 37,989

Cashewnut 36,743

Ginger 37,130

Cardamom 10,222

Turmeric 7,946

Coconut 5,941*

Pulses 3,128

Agriculture and allied sectors contributed 9.1 per cent toKeralasGSDP over 2011-12.

Kerala is the leader in pepper production in the country. Thestate accounted for around 94.3 per cent of total pepperproduction during 2010-11.

India is the fourth largest producer of natural rubber, andKerala accounts for around 87.3 per cent of total rubberproduction in India.

Total area under crops was around 2,661,757 hectaresduring 2011-12. In 2010-11, the agriculture income of thestate was estimated to US$ 3,535.3 million.


15/70

1,156

2,516

3,607

4,018

6,250

3,002

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13**

Exports of coastal and foreign cargo from the Kochi portincreased by 23.4 per cent and 28.4 per cent, respectively,during 2011-12.

While coastal cargo exports stood at 1.5 milliontonnes in 2011-12, foreign cargo exports were at 2.8million tonnes.

During April-September 2012, exports from CSEZ stood atUS$ 3,002.4 million. Exports from CSEZs stood at US$6,249.8 million during 2011-12 compared to US$ 1,155.9million during 2007-08, implying a CAGR* of 59.3 per cent.

Source:Economic Review of Kerala 2012Note: CSEZ - Cochin Special Economic Zone

*CAGR calculated in Indian rupee terms** - Data for April-September 2012

Total exports from CSEZs (US$ million)

CAGR59.3%*

Exports break-up, CSEZ (2011-12)

Sectors (US$ million)

Electronic hardware 97.6Electronic software 65.5

Garments 0.6

Gem & jewellery 5939.4

Plastic & rubber products 12.1

Engineering 15.8

Food & agro 33.7

Others 85.0

Total 6249.8


16/70

According to DIPP, FDI inflows to the state (includingLakshadweep) totalled US$ 959.0 million from April 2000 toAugust 2013.

Over 2012-13, outstanding investments in Kerala totalled US$45.3 billion.

The services sector accounted for around 62.6 per cent of total

outstanding investments, followed by the manufacturing sector(16.9 per cent).

Some of the recent investments in the state have been theKINFRA International Apparel Parks Ltd (KIAP), KINFRA Film andVideo Park, International Convention Centre Complex (ICCC) andTechnocity (Phase-IV expansion programme of Technopark) inThiruvananthapuram; and Technopark Phase-III and a deep waterport at Vizhinjam, near Thiruvananthapuram.

Projects worth US$ 2.4 billion are scheduled for completion in the

next 12 months.

Recent investments in the state include the PuthuvypeenLNG Terminal Phase-I (US$ 598.4 million), Lulu ShoppingMall in Kochi (US$ 294.6 million) and Cruise Terminal inKochi (US$ 50.2 million).

Kerala government has proposed to developmanaufacturing investment zones covering Ernakulam,Thrissur, Palakkad and Malappuram districts.

Source:CMIENote: DIPP - Department of Industrial Policy & Promotion

http://www.emergingkerala2012.org/mega-projects.php

Break-up of outstanding investments by sectors

(2012-13)

Mega projects conceptualised and developed in Kerala includeSupplementary Gas Infrastructure Project by Kerala Gail GasLimited, (US$ 400 million), Kochi Metro Rail Project (US$ 900million) and a Monorail project in Thiruvananthapuram (US$ 682million).

8.2%

16.9%

62.6%

1.9%9.4%

1.0%

Electricity

Manufacturing

Services

Irrigation

Real Estate

Mining


17/70

In Kerala, the Public Works Department has a total road

length of 31,811.6 km of state roads and 1,542 km ofnational highways.

The state is well-connected to its neighbouring states andother parts of India through nine national highways.

Agencies maintaining roads in Kerala include the PublicWorks Department (PWD); panchayats; municipalities,corporations; the departments of forests, irrigation, railways;

and the Kerala State Electricity Board (KSEB).

PWD roads constitute 15.3 per cent of total road network.

Around 6.66 km of PWD roads are made of cementconcrete, 30,744.4 km are black topped and 447.3 km arewater bound macadam. Nearly 97 per cent of the total roadsare black topped surfaces.

The Kerala State Transport Project (KSTP) was establishedin June 2002 to improve the 1,600 km of state roads and 77km of inland-canals with the use of geographic informationsystems.

As of September 2012, The Kerala State Road TransportCorporation (KSRTC) provides road transport services inKerala and operates 5,803 buses.

Sources: Economic Review of Kerala, 2012Ministry of Road Transport & Highways

Road type Road length (km)

National Highways 1,542

State Highways 4,341.65

Major District Roads 27,469.9



18/70

Kerala is well-connected to other parts of the country viarailways. As of March 2013, it had a railway network of1,257 km, with around 200 railway stations and 13 railwayroutes.

The state government has appointed Kerala StateIndustrial Development Corporation Ltd (KSIDC) as the

nodal agency for developing a project to establish a north-south high speed rail corridor (HSRC) to facilitate smoothand speedy passenger movement between various citiesand towns in the state.

Railway divisions in Thiruvananthapuram, Palakkad andMadurai jointly carry out railway operations in Kerala.

Kochi Metro Rail System, High Speed Rail Corridor and

Rail Coach Factory at Palakkad are ongoing projects inthe state currently. Kochi Metro Rail Phase 1 entailsinvestments of US$ 954.1 million.


Sources: Economic Review of Kerala, 2012Kerala State Industrial Development Corporation Ltd


19/70

Kerala has three airports handling domestic andinternational flights. They are located atThiruvananthapuram, Kochi and Kozhikode.

The airports together handled 34,444 international flights,carrying 4.7 million passengers; and 30,509 domesticflights, carrying 2.9 million passengers, over 2012-13.

The Cochin International Airport Limited (CIAL) is the firstgreenfield airport in India to be set up in the PPP mode.

CIAL is developing 450 acre of area around the airport asan aerotropolis to support the IT/ITeS Technopark withresidential and commercial space.

Construction of the proposed international airport at

Kannur, spread over 2,000 acres, has started; the airportwould have a runway length of 3,400 meters.


Sources: Economic Review of Kerala, 2012, Airports Authority of IndiaKerala State Industrial Development Corporation Ltd

Airport


20/70

There are 18 ports in Kerala, of which Cochin is the majorport. Furthermore, there are three intermediate and 14minor ports.

Kerala is constructing the Vizhinjam deep-waterinternational container transhipment terminal at Vizhinjam,17 km south of Thiruvananthapuram, under the PPP mode.

Sources:Cochin Port Trust, ipa.nic.in, Kerala Ports, www.keralaports.gov.in

Existing ports

Major ports Cochin

Intermediate ports

Neendakara Alappuzha Kozhikkode

Minor ports

Vizhinjam Valiyathura Vadakara Ponnani Thankasserry Kayamkulam Manakkodam Munambam

Beypore Thalasserry Manjeswaram Neeleswaram Kannur Azhikkal Kasaragode


21/70

15.8 15.217.4 17.9

20.1 19.8

0

5

10

15

20

25

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

For FY 2012-13, total trade volume handled at the Cochinport was 19.8 million tonnes compared to 20.1 milliontonnes in 2011-12.

The Cochin port handled 4.6 million tonnes per annum(MTPA) of containers during 2012-13.

Sources:Cochin Port Trust, ipa.nic.in, Kerala Ports,www.keralaports.gov.in

Cochin port traffic (million tonnes)

CAGR4.6%


22/70

The Cochin port is a favourite port-of-call for luxury cruiseliners from across the world.

During 2012-13, 50 cruises arrived at the Cochin port.

Around 58,000 cruise passengers embarked in Kochi in2011; revenue generated from their visit has been estimated

at US$ 11 million.

The arrival of a cruise vessel has an added impact on theregional economy as cruise tourists are high-endpassengers. On an average, each tourist is estimated tospend US$ 200 during the stopover of less than a day.

Source:Cochin Port Trust

Number of cruise arrivals at Cochin port

11

18 1922

38 3944

50

2002-03

2003-04

2004-05

2005-06

2006-07

2009-10

2011-12

2012-13


23/70

As of September 2013, the state had a total installed powergeneration capacity of 3,856.4 MW, which consisted of2,290.8 MW under state utilities, 1,369.7 MW under centralutilities and 195.8 MW under the private sector.

Thermal power contributed 1,704.6 MW to total installedpower generation capacity, Hydropower (1,881.5 MW),

nuclear power (95.6 MW) and renewable power (174.7 MW)are the other main sources.

Keralas state utilities produce 82.1 per cent of its energythrough hydroelectric power plants, and the remaining 17.8per cent through thermal and renewable power generationplants.

Kerala is among the prominent Indian states to have

achieved 100 per cent rural electrification.

Source:Central Electricity Authority, *As of September 2013

Installed power capacity (MW)

3,514.03,553.7

3,718.8

3,827.73,856.4

2008-09 2009-10 2010-11 2011-12 2012-13

CAGR2.35%


24/70

In 2009, the government had planned to set up powerprojects with a total capacity of 4,000 MW in the next 10years. This would help in reducing energy shortage andpromoting new industrial investments.

The Energy Policy of Kerala lays down the need to developrenewable energy sources and provides government

support for the same. Kerala has become the first state inthe country to launch an ambitious programme to generateover 10 MW of solar power.

27 hydel projects having an installed capacity of 539.3 MWare in the pipeline.

During 2012-13, US$ 218.2 million was earmarked for theenergy sector, a rise of 3.8 per cent over the previous year.

Per capita consumption of power in the state was 567 kWhover 2011-12.

Kerala State Electricity Boards total reported revenues perannum stood at US$ 1.4 billion during 2012-13.

Power generating stations in Kerala

Hydel plants under KSEB: 24 KSEB thermal plants: 2 Central-sector (NTPC) owned thermal plant: 1 Private hydel stations: 2

Source:Economic Review of Kerala, 2012


25/70

Telecom infrastructure

Wireless subscribers^ 31,000,066

Wire-line subscribers^ 2,985,010

Broadband subscribers 1,707,000 **

Post offices 5,056

Telephone exchanges 1,243*

Teledensity (in per cent) ^ 96.43

Sources: Telecom Regulatory Authority of India,Department of Telecommunications Annual Report 2011-12,

Ministry of Communications and Information Technology, India Post*As of December 2011, **As of December 2012, ^As of September 2013

Kerala had an overall tele-density of 96.4 per centcompared to an all-India average of 73 per cent, as ofSeptember 2013.

The state has 1,243 telephonic exchanges. About 98.0 percent of Kerala's telephone exchanges have internetconnectivity through the National Internet Backbone (NIB).

VSNL has an international communication gateway inKochi, with two high-speed submarine cable landings (SEA-ME-WE-3 and SAFE), offering 15 gigabytes per second(Gbps) bandwidth.

According to the Telecom Regulatory Authority of India(TRAI), as of September 2013, Kerala had nearly 31 millionwireless subscribers and 2.9 million wire-line subscribers

(including Lakshadweep).

The state is planning to build a telecom city nearTechnopark in Thiruvananthapuram, with an investment ofaround US$ 208.6 million.

Major telecom operators in Kerala

Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Aircel Limited

Vodafone Essar

IDEA Cellular

Tata Teleservices

Reliance Communications

Source: Telecom Regulatory Authority of India


26/70

Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 15 projects worth US$ 238 million have beenapproved over 2006-2012 for the development of urban infrastructure in Thiruvananthapuram and Kochi. As on 1stNovember 2013, ten projects worth US$ 164.3 million are in progress.

The Kerala Sustainable Urban Development Project (KSUDP) is an Asian Development Bank-assisted project covering thefive municipalities of Thiruvananthapuram, Kochi, Kozhikode, Kollam and Thrissur. With an investment of US$ 221.2 million,the project focuses on urban infrastructure improvements, community upgrading, local government infrastructure

development and capacity building, and implementation assistance.

The Kerala Water Authority (KWA) is responsible for the design, construction, execution, operation and maintenance ofmost of the water supply schemes, and the collection and disposal of waste water in Kerala.

Construction of the first phase of SmartCity Kochi, a self-sustained industry township project that is a conglomeratepromoted by Dubai Holding member TECOM Investments for knowledge-based companies, would be completed within 18months from the launch of the construction in June 2013.

JNNURM projects have been sanctioned for the improvement of water supply, sewerage, solid-waste management anddrainage, etc.

Kudumbashree, the State Poverty Eradication Mission, is involved in Clean Kerala Business to collect door-to-doorhousehold waste and process it for economic benefits.

Source: JNNURM, Ministry of Urban Development, Economic Review of Kerala, 2012


27/70

Project name Sector PPP type Contact authorityProject cost(US$ million)

Cochin International Airport Airports BOO Airports Authority of India 63.2

Coimbatore Bypass Road Roads BOT-Toll Department of Road Transportand Highways

20.7

Development of water supply projectat Bekal Kasargod District

Tourism BOT-AnnuityBekal Resorts Development

Corporation3.5

Development of new bridgeconnecting Mattancherry andWillingdon Island at Cochin

Roads BOT-TollThe Greater Cochin

Development Authority5.6

Development of a supermarket at

Vadakara

Urban

developmentBOT-Annuity Vadakara Municipality 3.1

Development of resorts at BekalKasargod District

Tourism BOO

Bekal Resorts DevelopmentCorporation (BRDC) and Kerala

Tourism DevelopmentCorporation (KTDC)

11.4

Kochi Metro-Rail ProjectUrban

developmentBOT-Annuity

Kerala Industrial InfrastructureDevelopment Corporation

663.9

Source: www.pppindiadatabase.com

BOT: Build-Operate-Transfer, BOO: Build-Own-Operate

Kerala has around 33 PPP projects, spread across sectors such as airports, roads, tourism, urban infrastructure and ports.


28/70

Project name Sector PPP type Contact authorityProject cost(US$ million)

Six-Laning of Vadakkancherry ThrissurSection

Roads BOT-TollNational Highways

Authority of India (NHAI)135.3

Thrissur-Edapalli Roads BOT-Toll NHAI 65.1

Trivandrum City Road Improvement ProjectUrban

developmentBOT-Annuity Kerala Road Fund Board 72.3

Vallarpadam Container TranshipmentTerminal

Ports BOT Cochin Port Trust 441.8

Vizhinjam Seaport International Ports BOT-AnnuityDirectorate of Ports,

Government of Kerala1,128.0

Four-Laning of Karnataka and Kerala

border to Kannur section Roads BOT-Toll NHAI 253.8

Four-Laning of Walayar-Vadakkancherrysection

Roads BOT-Toll NHAI 149.6

Kannur-Kuttipuram Package-2 Roads BOT-Toll NHAI 287.9

Kannur-Kuttipuram Package-1 Roads BOT-Toll NHAI 299.7

Source: www.pppindiadatabse.com

BOT: Build-Operate-Transfer


29/70

Sutherland Global Services

Infopark

Cochin Port Trust, Puthuvypeen

Cochin Port Trust, Vallapadom

KINFRA, Kochi

Unitech Real Estate

Parsavnath Developers

Smart City Infrastructure

Carborundum Universal Limited

MM Tech Towers, Alwaye

Emmar MGF, Alwaye

ElectronicsTechnology Park

KINFRA

Techno Park Sez- I

TechnoparkPallipuram

Techno Park Sez- II

KINFRA, Kakkancherry

KSITI, Pallipuram

KSITI, Purakkad

Kerala Industrial Infrastructure Development Corporation Limited (KINFRA)

KSITI, Kasargod

Kerala StateInformationTechnologyInfrastructure Limited(KSITI), Kannur

Hindustan News PrintLimited

KSITI, Kollam

Source: www.sezindia.nic.in


30/70


31/70

Source: www.sezindia.nic.in, SEZ: Special Economic Zone

Name/Developer Location Primary industry

Cochin Port Trust Puthuvypeen Port-based

Cochin Port Trust Puthuvypeen, Ernakulam Port-based

KINFRA Kazhakoottam, Trivandrum IT (Animation & gaming)

Smart City (Kochi) Infrastructure Pvt Ltd Kakkanad, Ernakulam IT/ITeS

Kerala State Information TechnologyInfrastructure Ltd (KSITIL)

Cherthalai, Alappuzha IT/ITeS

Infoparks, Kerala Kunnathunad, Ernakulam IT/ITeS

Cochin International Airport Ltd Ernakulam Airport-based

Some of formally approved SEZs in Kerala

As on July 2013, Kerala had 29 SEZs with formal approval and 24 notified SEZs.


32/70

Note: NIMZ - National Investment and Manufacturing Zone

NIMZ Kerala has sought the central government's approval for the Kochi-Palakkad National

Investment and Manufacturing Zone (NIMZ). The NIMZ is proposed to be set up across 20 identified nodes.

State-of-the-artinfrastructure

The state would develop state-of the-art industrial & commercial infrastructure across the

20 identified nodes. Other infrastructure facilities required to be created include internal roads, drainages,water treatment plants and gas based power plants for a total capacity of 2,500 MW.

Opportunity The opportunities available in this project are industrial plots, export and import-related

opportunities, packaging services, logistic services, etc.

Total employmentpotential of around 0.5

million

Kerala expects to generate direct employment for 0.5 million people over five years andindirect employment for 2.5 million people in 10 years.


33/70

Educational infrastructure (2012)

Schools 12,644*

Universities 14^

Engineering institutions 153

Arts and Science colleges 191

Polytechnics 49

Kerala has the highest literacy rate among all states in thecountry. According to the provisional data of Census 2011,the state has a literacy rate of 94 per cent; male and femaleliteracy rates stood at 96.0 per cent and 92.0 per cent,respectively.

About 30.11 per cent of total students are enrolled ingovernment schools, 60.48 per cent in government-aided

private schools and 9.41 per cent in unaided private schools(2012-2013).

Girl students constitute around 49.4 per cent of total studentenrolment in schools in the state.

Kerala had 1,836 higher secondary schools in 2012. Ofthese, 755 (41.2 per cent) are government schools, 668(36.4 per cent) are aided schools, and the remaining 413

(22.5 per cent) are unaided schools.

Sources: Economic Review of Kerala, 2012, University Grants Commission,*During 2011-12, ^As of March 2012


34/70

Kerala primary education statistics (2011-12)

Schools (No)

Lower primary: 6,784

Upper primary: 2,986

High schools: 2,874

School dropout rate (%) (2010-11)

Lower primary: 0.47

Upper primary: 0.32High school: 0.78

Pupil-teacher ratio 26:1

Nature of schoolsStudent strength

(in million)Share of total student

strength (%)

Government 1.26 29.8

Government-aided 2.593 61.3

Unaided 0.376 8.9

Total 4.230 100.0

Sources: Economic Review of Kerala, 2012, University Grants Commission


35/70

Major medical colleges in Kerala - 2012

Medical colleges: 22

Dental colleges: 21 Nursing colleges: 111 Ayurveda medical colleges: 17 Homeopathy medical colleges: 5 Siddha: 2

Sources: Economic Review of Kerala, 2012,University Grants Commission

Kerala is home to premier institutions such as:

Indian Institute of Management, Kozhikode

Indian Institute of Space Science and Technology,Thiruvananthapuram

National Institute of Technology, Calicut

National University of Advanced Legal Studies,Kaloor

Central Institute of Fisheries Nautical andEngineering Training, Kochi

Central Institute of Fisheries Technology, Cochin

Central Marine Fisheries Research Institute,Ernakulam

Institute of Human Resource Development,Thiruvananthapuram

Technical institutions under Directorate ofTechnical Education-2012

Institutions Numbers

Government technical high schools 39

Government commercial institutes 17

Tailoring and garment makingtraining centres

42

Vocational training centres 4


36/70

Sources: Sample Registration System (SRS) Bulletin September 2013(www.censusindia.gov.in),

Economic Review of Kerala, 2012*Per thousand persons**Per thousand live births

Health indicators as of 2012

Birth rate* 14.9

Death rate* 6.9

Infant mortality rate** 12

Life expectancy at birth (years)

Male 71.4

Female 76.3

Kerala has a good health infrastructure comprising 840*primary health centres, 25 dispensaries, 226 communityhealth centres and 5,403 sub-centres.

As of 2012, there were 1,255 medical institutions with37,388 beds under the Directorate of Health Services.

Currently, of Keralas total healthcare institutions, 46 percent are under Allopathic, 32.2 per cent under Ayurvedaand 22 per cent under the Homoeopathy department.

Health infrastructure as of 2012

Primary health centres: 840 Community health centres: 226

District/taluka/women and children hospitals: 113 Dispensaries: 25 T.B. clinics/centres: 17 Grant-in-aid institutions: 29 Leprosy control units: 3 Sub-centres: 5,403

Source

: Economic Review of Kerala, 2012


37/70

Kerala has been rated as one of the Thirteen Paradises ofthe World by National Geographic Traveller; it has beenpromoted as GodsOwn Country.

Health and wellness tourism in Ayurvedic medicine hasgrown tremendously in the recent past.

Sri Padmanabhaswamy temple makes the state one of theattractive religious tourism spots in India.

Other major temples in Kerala, such as Guruvayoor andSabarimala, are also major religious attractions.

Popular tourist locations

BeachesKovalam, Varkala, Marari, Bekaland Kannur

BackwatersKumarakom, Alappuzha, Kollam,Kochi and Kozhikode

Hill stationsPonmudi, Munnar, Wyanad andVagamon

Wildlife reserves

Periyar Wildlife Sanctuary,

Eraviikulam National Park,

Thattekad Bird Sanctuary

Parambikulam Wildlife Sanctuary

Sources: Department of Tourism, Government of Kerala,Economic Review of Kerala 2012


38/70

Art and culture are being fostered and promoted throughvarious bodies such as:

Kerala Sahitya Academy To promote Malayalamliterature.

Kerala Sangeetha Nataka Akademi To promote

traditional arts.

Kerala Lalithkala Academy To promote paintersand sculptors.

Kerala Folklore Academy To promote Keralafolklore.

Kerala State Chalachitra Academy Academy for

motion pictures.

Kerala KalamandalamTo teach traditional dances.

The cities of Kerala have modern amenities for recreationsuch as golf courses, shopping malls, theatres, caf-lounges and resto-bars.

New sports infrastructure projects in Kerala

New hockey stadium at Kollam

Rajiv Gandhi Indoor Stadium, Kochi

Shooting range at Vattiyoorkkavu,Thiruvananthapuarm

Corporation Stadium, Kollam

V.K.N. Indoor Hall, Thrissur

VKK Menon Stadium, Kozhikode

CSN Stadium, Thiruvananthapuram

New football stadium at medical college ground,Kozhikkode

New multipurpose hall, Kannur

Kariavattom main stadium, Thiruvananathapuam

Synthetic Athletic track at University of Calicut,Malapuram (Approved under Urban SportsInfrastructure Scheme (USIS))

Sources: Department of Tourism, Government of KeralaEconomic Review of Kerala 2012, News Articles


39/70

The state has 29 SEZs with formal approvals and 24 notified SEZs. A cyber-park, spread over a 68 acre campus, is beingdeveloped in Kozhikode.

Source: http://www.technopark.org/

Infrastructure Project description

Technopark

The Technopark at Thiruvananthapuram is spread over 300 acres. Technopark currently hosts over 290 IT and ITeS companies, employing over 42,500 IT

professionals. Technopark Phase-II has been declared an SEZ by the Government of India. Technopark will become a 14.54 million sq ft technology park, once its Phase-III is complete.

Technoparks Phase-III development is being implemented as an IT/ITeS SEZ, spread over92 acres.

As part of the Phase-IV, named Technocity, Technopark is developing 431 acres of land inPallippuram, 5 km north from the main campus on the National Highway-47 to Kollam.

Infopark

The Infopark at Kochi is best suited for ITeS due to its proximity to the submarine optical-

cable landings. The total land available with Infopark is 98.25acres, of which 75 acres has been notified as

an SEZ by the Ministry of Commerce, Government of India.

Special EconomicZones

Apart from the SEZs in Technopark and Infopark, the other SEZs in Kerala include theKINFRA Electronics Park SEZ in Kalamassery; a multi-product SEZ at Kochi; two port-basedSEZs at Vallarpadam and Puthuvypeen, at Kochi; a food processing SEZ near Calicut; a pulpand paper SEZ at Kottayam and a non-conventional energy sources SEZ at Kalamassery.


40/70

Symbol Industries

IT

Engineering

Minerals and mining

Handlooms and power loomsTextile

Tiles

Canning

Coir products

Agriculture and forest-based

Sericulture

Rubber

Food products

Beedi


41/70

District Industries

Kannur Handlooms, power looms, beedi

Alappuzha Coir products

Idukki Agriculture and forest-based

Thiruvananthapuram Handlooms, ITThrissur Powerlooms, handlooms, textile, timber, tile, canning

Palakkad Powerlooms, sericulture

Kollam Minerals and mining

Kozhikode Rubber

Wayanad Minerals and mining

Kasargod Minerals and mining

Kottayam Rubber, food products, engineering

Ernakulam IT


42/70

Keralas strategic location on the trans-national tradecorridor, rich natural resources and simple and transparentprocedures are favourably suited for investments in keysectors like tourism, IT/ITeS, manufacturing and mining.

Keralas traditional industries include handloom, cashew,coir and handicrafts.

KINFRA, KITCO Limited (formerly, Kerala Industrial andTechnical Consultancy Organisation Limited), theDirectorate of Industries and Commerce and the SmallIndustries Development Corporation are jointly responsiblefor the development of industrial infrastructure in the state.

Forming industrial clusters and developing infrastructure(such as rubber parks, electronic hardware park, coconutindustrial park, organic industrial park and food processing

parks) have been integral to the statesstrategies to attractinvestments in various industries.

The total number of functional micro, small and mediumenterprises - registered and unregistered - in Kerala stood at150,000 and 2,063,000 respectively as of March 2013.These units employed a total of 4,962,000 employees(621,000 employed under registered sector and 4,341,000employed under unregistered sector).

Key industries in Kerala

Handlooms and powerlooms

Rubber

Bamboo

Coir

Khadi and village industry

Sericulture

Seafood and other marine products

Cashew

Mining

Tourism

Food processing

Spices and spice extracts

IT & electronics

To make Kerala a premier global hub for economic activityand create awareness among investors regarding potentialin the state, a global investors meet Emerging Kerala was held in Kochi in September, 2012.

In terms of industrial growth, the states average growthfrom 2004-05 to 2011-12 was 13.6 per cent at currentprices.



43/70

Kerala accounts for approximately 57.0 per cent (in terms of value) of total coir and coir products produced in India.

The coir industry provides employment to around 400,000 people.

The state has three coir parks: two in Alappuzha, and one in Perumon (Kollam).

The Coir Co-operative Marketing Federation (COIRFED) is the apex federation of 842 primary coir co-operatives societies.

The US is the largest importer of coir products from India, followed by the Netherlands, the UK, Germany, Italy and Spain.

Source: Economic Review of Kerala, 2012,Coir Board


44/70

Export of curled coir, coir f ibre, coir pith, coir rope, coir yarn,coir geo-textile, handloom matting, power loom mats andrubberised coir from India increased in terms of quantity andvalue during 2012-13 compared to the previous year.

Keralas total coir exports stood at 71,284 tonnes (US$117.3 million) out of Indias export of 429,500 tonnes (US$205.5 million) during 2012-13.

Exports of coir and coir products from India stood at238,539 tonnes (valued at US$ 103.1 million) during April-September 2013.

The National Coir Research & Management Institute(NCRMI), a state government organisation, is following upon a potential deal with Saudi Aramco for a new technologythat can help cultivate crops in saline and arid conditions.

The Department of Coir Development, Government ofKerala, organised the world's largest expo on Kerala coirand natural fibre products, Coir Kerala 2013, during 01-05February 2013 in Alappuzha.

Business worth US$ 36.8 million had taken place atthe trade fair.

Source: Economic Review of Kerala, 2012, Coir Board,Government of India

Business India, March 31, 2013* Provisional data for the period April-September 2013

Exports of coir industry (000 tonnes)

187.6 199.9

294.5321

410.9429.5

238.5

0

50

100

150

200

250

300

350

400

450

500

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14*


45/70


The handloom industry employs about 51,590 people, of which 42 per cent are women. It ranks second among thetraditional industries of the state in terms of providing employment (2012).

Total handloom cloth production increased by about 5 per cent to 27.9 million metres in 2011-12 from 26.7 million metres in2010-11; the total value of production grew by around 6 per cent to US$ 42 million from US$ 40 million during the sameperiod.

The stateshandloom industry is mainly concentrated in the districts of Thiruvananthapuram and Kannur and in some parts

of Kozhikode, Palakkad, Thrissur, Ernakulam, Kollam and Kasaragod.

The central government granted US$ 0.8 million for setting up Indian Institute of Handloom Technology in Kaloor (Kochi),and a Handloom and Handicrafts Village in Chenamangalam (Ernakulum), which would have a government facility centre, adesign bank and a museum.

At the end of March 2012, there were 591 registered Primary Handloom WeaversCo-operative Societies (PHWCS) inKerala, consisting of 166 factory-type societies and 425 cottage-type societies.

Around 94.0 per cent of the total number of looms are under the cooperative sector, the remaining being under industrialentrepreneurs.

Keralasfour integrated power loom co-operative societies in Calicut, Wayanad, Neyyattinkara and Kottayam have beenexpanded by providing budgetary support.

The Calicut Integrated Powerloom Co-operative Society Ltd has been converted into a textile park comprising all thesegments of a composite mill (weaving, processing and garment making). At the society, semi-automatic powerlooms,automatic looms and highly sophisticated machines are operational.


46/70

Kochi has emerged as an unique IT destination and is connected by two submarine cables and satellite gateways thatdirectly support major IT cities including Bengaluru.

The annual plan outlay for information technology during 2012-13 is 27 per cent higher than that for 2011-12.

Kerala possesses a cost-effective and highly skilled human resource base with the lowest attrition rate (less than 5 percent).

The state has a techno park in Thiruvananthapuram, info park in Kochi and cyber park in Kozhikode. It also has private ITparks such as Smart City (Kochi), L&T Park (Kochi), Leela Info Park (Trivandrum), Brigade Park (Kochi) and MuthootPappachan Techno Polis (Kochi).

Over 2012-13, the statessoftware exports made by registered units through Software Technology Parks of India (STPI)were valued at US$ 644.4 million.

There are three operational IT/ITeS SEZs in the state (one in Kochi and two others in Trivandrum).

Source: Kerala IT Policy 2012, Cybex, IndiaitnewsEconomic Review of Kerala 2012


47/70

IT exports from Kerala increased at a CAGR* of 23.8 percent between 2007-08 and 2012-13.

Operational costs in the state are among the lowest in India(40 per cent lower as compared to other major IT locationsin India). Also, rental/real estate cost is lower than major ITcities in the country.

Around 11 per cent of the national IT pool is contributed byskilled human resources from Kerala.

Kerala has a strong e-governance infrastructure and is aleader state in e-governance.

The governmentsobjective is to achieve direct employmentof up to 0.5 million in the ICT sector and to have 3,000

technology start-ups by 2020.

Source:Kerala IT Policy 2012Software Technology Parks of India, Cybex, Indiaitnews

Note: ICT = Information and Communication Technology


Exports from IT industry (US$ million)

298.5

392.7 412.6454.6

413.4

644.4

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

CAGR23.8%*


48/70

Tata Consultancy

Services

Infosys

Collabera

RR Donnelley India

Outsource Pvt Ltd

Tata Consultancy Services (TCS) is among the largest providers of IT and Business ProcessOutsourcing (BPO) services in India. TCS employed more than 276196 IT consultants in 44countries and generated revenue of US$ 11.6 billion in 2012-13.

TCS provides IT consulting and services in banking, financial services, healthcare and lifesciences, insurance, manufacturing, media, entertainment, transportation, travel and hospitality,retail, utilities and energy resources sectors. It has a software development and training centreat Technopark in Thiruvananthapuram.

Established in 1981, Infosys employs more than 160,000 people. The company generated US$

6.8 billion in revenue over 2012-13. It is engaged in IT consulting, modular global sourcing,process re-engineering and BPO services.

The company has operations in Australia, China and the US, and marketing and technologicalalliances with Informatica, IBM, HP, Microsoft, Oracle, etc. Infosys has offices in 30 countriesand development centres in India, China, Australia, the UK, Canada, Japan, etc. It has a centreat Technopark, Thiruvananthapuram.

Collabera is a fast-growing, end-to-end information technology services and solutions provider,working with leading global 2,000 organisations from banking & financial services,communications, media, manufacturing, retail, energy and utilities domains. The company

employs over 8,000 professionals across more than 25 offices and four world-class deliverycentres in the US, the UK, India, Singapore and Philippines. The company has an office atTechnopark, Trivandrum.

Founded in 1995, RR Donnelley Global BPO has 7,700 employees in 28 delivery and 41 onsiteoperation centres across nine countries and had a revenue of US$ 10.2 billion in 2012.

It is a subsidiary of RR Donnelley (RRD), a global provider of integrated communications,business services and supply chain solutions. RR Donnelley is a US$ 11 billion Fortune 300company with around 65,000 employees across the world. The company has an office atTechnopark, Trivandrum.


49/70

The self-contained Electronics Technology Park atTechnopark, Trivandrum, has been instrumental in attractingglobal electronics manufacturers.

The state has ample availability of skilled and semi-skilledworkers for the electronics industry.

The electronic hub proposed at Kochi is a prestigious project

of the Government of Kerala to promote electronic hardwaremanufacturing and assembling units and R&D centres, andto support infrastructure for the same.

This hub is a high priority area, which would promote a largenumber of small, medium and large scale industries in thestate. It would also form a National Investment &Manufacturing Zone (NIMZ) for the production of electronichardware items.

In November 2012, Hindustan Aeronautics Limited has setup phase-I of an electronics factory at the cost of US$ 12.1million at Kasargud to produce advanced avionics for aircraftand helicopters.

Development of the factory will lead to the growth ofsubsidiary industries, which in turn will generatesecondary employment opportunities and augmentskill-sets in this area.

Key players

Traco Cable Company Limited

Transformers and Electricals Kerala Ltd (TELK)

Kerala State Electronics DevelopmentCorporation Ltd (Keltron)

Source: Economic Review of Kerala, 2012Business Standard, November 2012


50/70

Traco Cable Co Ltd

Transformers and

Electricals Kerala Ltd

(TELK)

Kerala State Electronics

Development Corp(Keltron)

Traco Cable Company Limited commenced operations in 1964. It manufactures high qualitycables and wires in technical collaboration with Kelesey Engineering Co Ltd, Canada. TRACOcurrently meets the needs of public sector undertakings in India such as railways and theelectricity boards of various states. The company is headquartered in Kochi, with factories inErnakulam, Kannur and Thiruvalla.

TELK was incorporated in 1963 under an agreement with the Government of Kerala, KeralaState Industrial Development Corporation and Hitachi Limited, Japan. It manufactures

transformers, bushings and tap changing gears. The factory and corporate office are located inAngamally, near Kochi. In 2012. TELK won the Kerala Safety Award for very large factories inthe engineering category.

TELK provided its first 400KV Class Transformer, 315MVA Auto Transformer and GeneratorTransformer for India's first 500MW Thermal Unit.

Founded in 1973, Keltron is a state-owned electronics enterprise, employing around 1,800people and has 10 production centres. It provides technical manpower to leading organisationssuch as Oil and Natural Gas Corporation Limited (ONGC). The companys products spancategories including aerospace electronics, security and surveillance systems, intelligent

transportation systems, strategic electronics products, IT solutions, IT infrastructure solutions,process automation, ID card projects, power electronics, electronic components and TE units.Recently the company bagged an order of US$ 4.6 million from Chennai-based BGR EnergySystem Ltd. The order was for manufacture, supply, assembly and commissioning of sixteenUPS systems, inverters, battery and boost chargers.

Keltron is headquartered in Thiruvananthapuram and has training centres in 30 locations acrossKerala.


51/70

Tourism is a primary economic activity in Kerala. The sector contributes about 9.0 per cent to the statesGDP.

Total revenue (including direct and indirect) from tourism rose by around 11 per cent yoy to US$ 4 billion in 2012.

Kerala became the number one travel destination in the GooglesSearch Trends for India in 2012.

Kerala Tourism bagged four of the top honors at the Pacific Asia Travel Association (PATA) Awards 2011 for outstanding

achievement in tourism announced in Bangkok.

Kerala Tourism has won many national and international awards. The state has been voted the Best Asian HolidayDestination 2010 by SmartTravelAsia.com, ahead of other destinations such as Bali, Phuket and Maldives.

Popular tourist destinations in Kerala include beaches of Kovalam, Varkala, Marari, Bekal and Kannur; backwaters ofKumarakom, Alappuzha, Kollam, Kochi and Kozhikode; and hill stations of Ponmudi, Munnar, Wayanad and Wagamon.

Kerala also has a number of well known wildlife reserves, including the Periyar Wildlife Sanctuary, the Eravikulam NationalPark, the Thattekkad Bird Sanctuary and the Parambikulam Wildlife Sanctuary.

The State Tourism Department is developing eco-friendly, rural tourism packages in Kumarakom, Wayanad, Kovalam andMuziris heritage circuit.

Source: Economic Review of Kerala, 2012www.keralatourism.org, News Articles


52/70

Source: Economic Review of Kerala, 2012, www.keralatourism.org, Ministry of Tourism, Government of India

Note: Responsible Tourism is defined as tourism 'that creates better places for people to live in, and better places to visit

Arrivals of domestic and foreign tourists in Kerala increasedat a CAGR of 10.6 per cent and 12.9 per cent, respectively,over 2009-2012

Major initiatives of Kerala Tourism:

Responsible Tourism (RT), an innovative and far-reaching concept, is an initiative implemented at fourdestinations, Kovalam, Kumarakom, Thekkady and

Wayanad.

Medical tourism, promoted by traditional systems ofmedicine such as Ayurveda and Siddha, is becomingwidely popular in the state and is attractingincreasing numbers of domestic and foreign tourists.

Meetings, Incentives, Conferences and Exhibitions(MICE) Tourism, which involves bringing a grouptogether for some special purpose, is now being

promoted heavily by Kerala Tourism.

Eco-Tourism, Muziris Heritage Tourism and KeralaSeaplane Services are some of the other majorongoing projects in Kerala.

Since 15th August 2013, Visa on Arrival has beenintroduced at Thiruvananthapuram airport.

Domestic tourist arrivals in Kerala (in million)

Foreign tourist arrivals in Kerala (in million)

7.918.6

9.38 10.7

2009 2010 2011 2012

0.55

0.660.73

0.79

2009 2010 2011 2012


53/70

Source: Economic Review of Kerala, 2012, Rubber Board, Ministry of Commerce and Industry, Government of India

Note: JV = Joint Venture, MT = Metric tonnes , *Provisional data for April-July 2013

Kerala is the leader in rubber production; 87.3 percent of thetotal rubber production in the country is from Kerala.

Natural rubber production in Kerala was 0.8 million MTduring 2011-12, a 2.4 per cent increase over 2010-11.

Export of natural rubber increased at a CAGR of 6.8 per cent

between 2009-10 and 2012-13.

Consumption of natural rubber in the country reached972,700 tonnes during 2012-13.

KINFRA, through a JV with the Rubber Board, hasdeveloped Indiasfirst rubber park in Kochi. Kerala also hasa major rubber cluster in Kottayam.

Export of natural rubber from India (000 tonnes)

Consumption of natural rubber in India (000 tonnes)

25.1

29.927.1

30.6

2.1

2009-10 2010-11 2011-12 2012-13 2013-14*

947.7 964.4 972.7

328.5

2010-11 2011-12 2012-13 2013-14*


54/70

Kerala can be termed as the land of spices, considering thelarge variety of spices grown in the state.

The value of spices exports from Kerala increased at aCAGR* of 26.1 per cent between 2007-08 and 2011-12.

Kerala accounts for about 90 per cent (based on value as

well as volume) of total pepper exports from India.

The area under pepper production in the state isestimated at 85,000 hectares; pepper production isprojected at 38000 MT during 2011-12.

Kerala constituted 79.1 per cent of the countrystotalpepper production in 2011-12.

Exports of spices from Kerala (through Cochinand Trivandrum ports) in US$ million

Source:Economic Review of Kerala, 2012Spices Board IndiaMT = Metric tonnes


314.1 320.4 307.3

413.7

667.6

2007-08 2008-09 2009-10 2010-11 2011-12

CAGR26.1%*


55/70

Khadi and village industries have been an integral part of thetraditions of Kerala.

There is immense scope for investments in the field of khadi,due to higher demand for khadi products such as silk sarees(Payyannur pattu and Chithali silk), cotton sarees,Kuppadam dothies, bedspreads and towels.

The Kerala Khadi and Village Industries Board is thestatutory body in the state.

Khadi goods worth US$ 6.5 million, up by 14.8* per centover the previous year, have been sold through 216 salesoutlets of Kerala Khadi & Village Industries during 2011-12.

Expansion and modernisation of the sliver project in

Ettukudukka, and marketing and strengthening of theweaving sector are some of the major schemes in the khadisector to develop domestic and export markets over 2012-13.

Total sales of khadi products from sales outlets ofKerala Khadi & Village Industries (US$ million)

Source:Economic Review of Kerala, 2012*Calculated in Indian rupee terms

6.0

6.5

2010-11 2011-12


56/70

There are vast opportunities for investment in the field of Ayurvedic products due to higher demand for natural productssuch as skin care, hair care, body care and Ayurvedic tooth paste.

Kerala is the land of Ayurveda, with numerous medicinal plants. Herbs with good potency provide the continuity andconsistency of Ayurvedic medicines needed for effective treatment procedures.

Kerala has the highest number of Ayurveda colleges and practitioners in the world.

Thrissur (Kerala) is emerging as one of the largest hubs for Ayurvedic drug manufacturing in the country.

Kerala has 850 Ayurvedic drug manufacturing units including some major ones such as Oushadhi, VaidyaratnamOushadhasala and KP Namboodiris.

Total sales of Oushadhi, the biggest Ayurvedic drug manufacturing unit in India, rose at a CAGR of 16.6 per cent between2007-08 and 2011-12.

The company recorded sales of US$ 12.2 million over 2012-13 compared to US$ 9.0 million in the previous year.

The company expects to achieve total sales of US$ 36.8 million in 2015.

Source: Economic Review of Kerala 2012, News articles*CAGR calculated in Indian rupee terms


57/70

The state has a long coastline of over 580 km andinnumerable water bodies, generating a huge potential forinland and marine fishing, and providing it a prominentposition in fish cultivation.

Among maritime states in India, Kerala ranks second inmarine fish production.

Total fish production in the state stood at 0.633 milliontonnes in 2012-2013.

The production of marine fish in the state during 2012-13was 0.484 million tonnes while inland fish productionreached 0.149 million tonnes during the same period.

The Government of Kerala has implemented nine fishing

harbours so far; works for other eight harbours are inprogress.


Department of Animal Husbandry, Dairying and Fisheries

Total fish production in Kerala (in million tonnes)

0.678 0.677 0.686 0.687 0.681 0.6930.633

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013


58/70

Hospitality, leisure andentertainment

Being a leading tourist hub in the country, Kerala is making rapid strides in the hotel, retailand entertainment sector.

The sector is attracting investments in projects such as world-class spas, entertainmentcentres, mega shopping malls, multiplexes, business convention centres and theme parks.

The state has world-class infrastructure and perfect climate for Ayurveda health centres. Hotel projects under development include Mfar Hotels and Resorts Ltds5-star hotel and

Banyan Tree Hotels & Resorts.

Food processing

Food processing is a sunrise sector that has gained prominence over the recent years inthe state.

FPI in Kerala is constituted by organised as well as unorganised units. Spices, pickles and marine products are the major food product exports from Kerala. Kerala has Indias first food processing industrial park in Malappuram and seafood

processing park in Alappuzha. The state also has a coconut-based food processing plantin Kinalur.

To promote food processing, agriculture and allied sectors, Kerala Agri Food Pro Meet2013, which was a technology meet, was held in Kochi.

Note: FPI = Food Processing Industry


59/70

A single-window clearance mechanism (SWM) wasestablished in June 2000, with an aim to expediteclearances for new industrial projects.

A state-level board, headed by the Chief Secretary, issuesclearances within a time frame of 45 days to medium andlarge scale industries.

KSIDC is the single point of contact and convenor of theState Board.

District-level boards have been constituted for issuingclearances that are required by small scale industries.

The District Collector of the respective district is Chairmanand General Manager of the Board; the District Industries

Centre (DIC) is the convenor for such boards. Thestipulated time frame for clearances is 60 days.

Industrial Area Boards have been set up in variousindustrial areas of the state for the clearance of projects. Anofficer, not below the rank of District Collector, is Chairmanof each Board, with the Designated Authority of theIndustrial Area as Convenor. The stipulated time frame forobtaining the clearances is 30 days.

State Board ChiefSecretary

District Boards DistrictCollector

Industrial AreaBoard

An officer not

below the rankof DistrictCollector

Source: KSIDC

SWM structure in Kerala


60/70

Agency Description

Kerala IndustrialInfrastructure

Development Corporation(KINFRA)

The aim of the organisation is to speed up industrial growth in Kerala throughinfrastructure support.

It operates industrial parks in various sectors. It has three newly operational parks: Kera Park (in Thrissur), a Spices Park (Idukki)

and a Rubber Park (Pathanamthitta).

KINFRAs four upcoming projects include a marine park (in Beypore), a technologypark (Ramanattukara), a food park (at Wayanad) and an industrial park (Palakkad).

KITCO Limited(formerly, Kerala

Industrial and TechnicalConsultancy Organisation

Limited)

The organisation is involved in providing technical consultancy assistance to banks byappraisal of projects for priority sector lending and to entrepreneurs in the small &medium enterprises (SMEs) sector by way of preparation of project reports & marketstudies and by conducting training programmes for entrepreneurship development.

Directorate of Industries

and Commerce

It is the implementing agency for the Department of Industries, Government of Kerala. It provides infrastructure facilities for the small scale sector by acquiring land and

developing facilities such as roads, water supply, electricity and civil works.


61/70

Agency Description

Small IndustriesDevelopment Corporation

It provides infrastructure facilities for the small scale sector through its major- and mini-industrial estates.

Kerala State IndustrialDevelopment Corporation

(KSIDC): the single-window clearance and

monitoring agency

Purpose:

Formed in 1961 with an objective of promoting, stimulating, financing and facilitatingthe development of large and medium scale industries in Kerala.

Acts as a promotional agency, involved in catalysing the development of physical andsocial infrastructure required for the constant growth of industry.

Composition:

Consists of a group of professionals from various fields including engineering,management, finance and law.

Services offered include project lending, single-window clearance, equipmentpurchase loans and consultancies.


62/70

Agency Contact information

Directorate of Industries and Commerce

Vikas Bhavan P O ThiruvananthapuramKerala-695 033

Phone: 91-471-2302 774Fax: 91-471-2305 493

E-mail: [email protected]

Kerala State Industrial Development Corporation Limited(KSIDC)

T C XI/266, Keston Road, Kowdiar,Thiruvananthapuram-695 003

Phone: 91-471-2318 922Fax: 91-471-2315 893

E-mail: [email protected]

KITCO Limited

P B No 4407, Puthiya Road,NH Bypass, Vennala, Cochin-682 028Phone: 91-484 -4129 000 / 2805 033

Fax: 91-484 -2805 066E-mail: [email protected]


63/70

Agency Contact information

Kerala Industrial Infrastructure Development Corporation(KINFRA)

KINFRA HOUSE, TC 31/2312Sasthamangalam, Trivandrum-695 010

Phone: +91-471-2726 585Fax: +91-471-2724 773E-mail: [email protected]

Kerala Small Industries Development Corporation

Housing Board Building, 6thfloor, Santhi NagarP B No 50

Thiruvananthapuram- 695 001Phone: 91-471-2330 401, 2330 413, 2330 818,

Fax: 91-471- 2330 904E-mail: [email protected]


64/70

Approvals and clearances required Departments to be consultedMechanism and estimated

time

Incorporation of the company Registrar of Companies

Single-window clearance:The states single-windowfacility clears investmentproposals in 45 to 60 days onan average; the single-windowmechanism helps obtain allapprovals necessary for theinvestment proposals within the

specified time frame.

Registration, Industrial EntrepreneursMemorandum, Industrial Licences

District Industries Centre for small scaleindustries and KSIDC for large and mediumindustries

Allotment of land State Department of Industries/KSIDC/KINFRA

Permission for land useState Department of Industries,Kerala Town and Country Planning Department

Environment approval for the siteKerala State Pollution Control Board and CentralMinistry of Environment and Forests

No-objection certificate and consent underWater and Pollution Control Act

Kerala State Pollution Control Board

Approval of construction activity and buildingplan

Kerala Town and Country Planning Department

Sanction of power Kerala State Electricity Board (KSEB)

Registration under States Sales Tax Act

and Central and State Excise ActSales Tax Department, Central and State ExciseDepartments


65/70

Cost parameter Cost estimate Source

Industrial land (per sq m) US$ 33-190 (Cochin) Industry sources

Five-star hotel US$ 142-415 per room per night Leading hotels in the state

Office space rent (per sq ft) US$ 0.6-3 per month Industry sources

Residential space rent (2,000 sqft house)

US$ 350-750 per month Industry sources

Power (per kWh)Commercial: 16 cents (US)Industrial: 9 cents (US)

DCH Databook October 2013

Labour (minimum wages per

day) US$ 8.3 to US$ 10.8

Ministry of Labour and

Employment, Government of India

Water (1,000 litres)Commercial and industrial: US 22 cents toUS 55 cents

Kerala Water Authority

Sources: Kerala Government websites and industry sources,Ministry of Labour and Employment, Government of India,

Kerala Electricity Regulatory Commission,Kerala Water Authority


66/70

Kerala Small Hydro Power Policy 2012

To harness green and clean natural resources in the state for environmental benefits and energysecurity.

Read more

Objective

Kerala Tourism Policy 2012

To create an environment for investment.

To market Kerala as a visible global brand in domestic and international markets.

To ensure quality visitor experience.Read more

Objectives

Kerala IT Policy 2012

To plan, develop and market the state as the most preferred IT/ITeS investment/businessdestination in India.

Read more

Objective
http://www.kerala.gov.in/docs/pdf/3942_12.pdfhttp://www.keralatourism.org/tourism-policy-2012-english.pdfhttp://www.kerala.gov.in/docs/pdf/3918_12.pdfhttp://www.kerala.gov.in/docs/pdf/3918_12.pdfhttp://www.keralatourism.org/tourism-policy-2012-english.pdfhttp://www.kerala.gov.in/docs/pdf/3942_12.pdf


67/70

Industrial & Commercial Policy 2011 (Draft)

To promote Kerala as a prime destination for industrial investments with environmentalprotection.

Revamp Kerala into an entrepreneurial state by encouraging private investment in all sectors,particularly agro processing, services and commerce, and new emerging sectors.

Read more

Objectives

Sports Policy 2012

To provide equal opportunities to all citizens of the state for participation in sports.

To promote excellence in sport, with the athlete as the central character.

To develop, maintain and optimally utilise high quality sports infrastructure.

To encourage, train and support talented sports persons in large numbers.

Read more

Objectives
http://kerala.gov.in/docs/policies/draftic_policy11.pdfhttp://www.35thnationalgames.in/images/policyfinalrev.pdfhttp://www.35thnationalgames.in/images/policyfinalrev.pdfhttp://kerala.gov.in/docs/policies/draftic_policy11.pdf


68/70

Kerala Biotechnology Policy 2003

The policy focuses on catalysing the development and application of biotechnology while takingadvantage of the statesresources and keeping global requirements in perspective.

Read more

Objective

SEZ Policy 2008

To make Keralas economy more export-oriented by giving various exemptions andconcessions.

Read more

Objective

The policy focusses on positioning good health as the product of the development agendaincluding water supply, nutrition, sanitation, prevention of ecological degradation, respect forcitizen rights and gender sensitivity.

Objective

Read more

Kerala Health Policy 2013 (Draft)
http://www.biotechcommission.kerala.gov.in/index.php?option=com_content&view=article&id=57&Itemid=63http://www.sezindia.nic.in/writereaddata/statePolicies/kerala%20policy.pdfhttp://kerala.gov.in/docs/policies/2013/drafthealthpolicy2013.pdfhttp://kerala.gov.in/docs/policies/2013/drafthealthpolicy2013.pdfhttp://www.sezindia.nic.in/writereaddata/statePolicies/kerala%20policy.pdfhttp://www.biotechcommission.kerala.gov.in/index.php?option=com_content&view=article&id=57&Itemid=63


69/70

Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

2013-14* 59.38

Average for the year*Average for the period from April 1 2013 to November 7 2013

Exchange rates


70/70

India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been preparedby Aranca in consultation with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. Thesame may not be reproduced, wholly or in part in any material form (including photocopying or storing it in anymedium by electronic means and whether or not transiently or incidentally to some other use of this presentation),modified or in any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of thispresentation to ensure that the information is accurate to the best of Aranca and IBEFsknowledge and belief, thecontent is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned inthis presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result ofany reliance placed on this presentation.

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission onthe part of the user due to any reliance placed or guidance taken from any portion of this presentation.

kerala march 2014

Documents