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MahaConnect The Business Newsletter 60 th Edition – April 2015 From the Government of Maharashtra-MIDC

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Page 1: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

MahaConnectThe Business Newsletter

60th Edition – April 2015

From the Government of Maharashtra-MIDC

Page 2: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

1© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

In This Issues

1. From CEO’s Desk

2. Sector Profile – Food Processing

3. Division Profile – Nashik

4. Events – Hanover and Israel

5. Feedback

Content

Page 3: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

2© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

From CEO’s DeskDear Reader ,

Food Processing Sector is one of the fastest growing sectors of the economy and growing at the rate of 8.4 percent. The food processing sector has got the ability to bridge the gap between the farmers and consumers. Thissector is also one the most labour intensive segment constituting 13.04 per cent of employment generation in allregistered factory. Maharashtra , being the most agriculturally developed state, provides a vast opportunity toinvestors to invest in this sector. This edition of MahaConnect showcase the presence of this sector in Maharashtraand its vast outreach across the state.

This newsletter also throws light on the Nagpur division. Nagpur is the second capital of the state and is home tomany multinational companies belonging to key sectors like Textile, Food Processing, IT, Defense, Steel etc. Apartfrom Nagpur, district such as Wardha, Bhandara, Gondia Chandrapur and Gadchiroli are also gaining industrialgrounds.

Further, this newsletter also cover two major events in which Maharashtra participated. First ,it covers theHannover Messe 2015 (Hannover Fair) in which the state had shown its full blown potential to the lead the “Makein India” campaign through “Make in Maharashtra” . Second , CM Devendra Fadnavis also participated in the Israel– AgriTech 2015. This event was significant as it will bring strategic agricultural knowledge, technology andexpertise which would be helpful to improve the state of agriculture.

We keenly look forward to your suggestion and feedback in making MahaConnect more enriching for our readers.Please write to us at [email protected]. We also invite you to visit our website www.midcindia.org forfurther details and opportunities the State provide in the realm of setting up industries in the State.

Regards,Bhushan Gagrani (IAS),CEO MIDC

Page 4: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

3© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

7,544

1,492

9,036

3,017

2,644

788

4,273

4,617

8,834

76,901

Total Cereals

Total Pulses

Total Foodgrains

Rice

Maize

Bajra

Soyabean

Oilseeds

Cotton

Sugarcane

Maharashtra Total Agriculture production –2013-14 in ‘000 MT

• In the food processing sector, Maharashtra has as many as 16,512 small and medium and 322 large scale food processing units.

• The food processing sector in the State has attracted Rs. 1039 crores worth of Foreign Direct Investment through 173 projects since 1991

• Maharashtra has declared Grape Processing Industry policy to give impetus to grape processing and wine industry in the state

• Maharashtra is a bio diverse state with 9 agro climate zone and varying soil types , suitable for agriculture development

• Maharashtra leads the sugar industry sector with 200 sanctioned and 150 productive cooperative sugar mills

• Maharashtra has more than 60% of the area under drip irrigation

• State Seed Corporation is the first farmer company in seed sector

Sector Profile – Food Processing

Page 5: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

4© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Major Food Processing Hubs

• Food Parks : Eight Specialized Food Parks with facilities like coldstorage , warehousing ,advanced packaging ,tera packaging & foodtesting laboratory. They are located at : Butibori (Nagur),Shandra(Aurangabad),Nevasa (Ahmednagar),Latur , Osmanabad,Nanded ,Chiplun (Ratnagiri)

• Wine Parks : MIDC has set up three Wine parks at : Vinchur , nearNashik , Addn Vinchur near Nashik , Palus near Sangli

• Floriculture : Three Floriculture Parks developed as world classfacility for production of flowers of different types and varieties .MIDC provides nursery , post harvest , infrastructure and logisticfacilities. The parks are located in Talegaon (Pune),Mudkhed(Nanded) and Osmanabad.

Dedicated Institutes• Central Food Technology Research Institute (CFTRI) , Mumbai cater to

the technology transfer and business development services to theFood Industries and allied organizations in Mumbai as well as theWestern region of the country

Ratnagiri Sangli

OsmanabadLatur

Nashik

Pune Nanded

Aurangabad

Ahmednagar

Nagpur

Food Processing Hub

Sector Profile – Food Processing

Page 6: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

5© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Division Profile - Nagpur

Districts in Nagpur DivisionWardha

Nagpur

Bhandara

Gondia

Chandrapur

Gadchiroli

• Nagpur is the easternmost division in the state, with an administrative headquarters in the city of Nagpur

• The division had one of the highest GDP growth rate in Maharashtra

• The division has the fifth highest per capita income in the state of Maharashtra

Demographic SnapshotArea (Sq Km) 57268

Population ( in lakhs) 118

Literacy Rates (%) 85

Economic SnapshotGDP (INR Crore) 1,22,509

GDP Growth – YoY (%) 14.7%

Per Capita Income 88,253

Maharashtra

Nagpur Division

Page 7: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

6© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Division Profile - Nagpur

Industrial Units in MIDCNumber of Units 3258

Investment (INR Crore) 14,298

Employment (INR Lakh) 0.78

MSME (Micro , Small and Medium Enterprise)MSMEs 22,082

Per cent share in State 10.4%

Employment (in Lakhs) 2.35

Per cent share in State 8.7%

SEZ (Notified)No of SEZ 2

Area (ha) 1,699

Investment (INR Crore) 3,787

Infrastructure and Connectivity • Nagpur is major junction for roadways with two major

national highways (NH7 and NH6) which are connected to major industrial areas and tourist places

• Nagpur – Aurangabad – Mumbai State Highway significantly reduced the time and distance to travel to Mumbai

• Nagpur is the divisional headquarter for Central Railways and South Eastern Central Railway Zone

• It has rail connectivity of 1498 km connecting the major industrial area of the districts under the division

• Nagpur has an International Airport and a Multi Modal International Cargo Hub at MIHAN

• It has well connected flights to other major cities of the country

• It has the first airport in country to be ISO 27000 certified

• Nagpur there are 16 big dams having storage capacity designed to hold 2858 ten million cubic meters of water

• Nagpur division has 40 Medium and 31 minor project to cater to demand of the division

ROAD

RAIL

AIR

WATER

Page 8: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

7© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Division Profile - Nagpur

Investment Opportunities Key Players

Textile• Butibori MIDC , Nagpur is one of the largest industrial estate in Maharashtra and is

rapidly emerging as textile zone with presence of major textile units such asIndorama Synthetics , Morarjee textiles, Fabworth .

• With Construction of Common Effluent treatment plant , it is expected that textileindustry will further receive boost at Butibori

• Nagpur division is also one of the largest cotton producing region of the state.

Food and Agri Processing• Nagpur has host of big food processing companies such as Dinshaw Dairy Food and

Haldiram Manufacturing Co.Pvt• In addition, orange, lemon , sweet lime , pineapple , and tomato processing units

are being setup in the first food park of Maharashtra in Butibori MIDC• This Food Park will provide facilities like warehousing , cold storage , weigh bridge ,

quality control laboratory etc.

IT• Nagpur is also emerging as the favoured IT destination due to availability of

infrastructure , its central location and inexpensive skilled labour from local educational institutions

• The development of IT park near MIHAN cargo hub is expected to provide impetus to the IT sector in the region

Page 9: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

8© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Division Profile - Nagpur

Investment Opportunities Key Players

Defense• Nagpur is also emerging as Aerospace Hub with Boeing, TAL and BrahMos

aerospace, Max Aerospace at MIHAN• The MRO facility at Nagpur will provide larger share of the Indian MRO market,

which is expected to reach US$ 2.5 bn by 2020

Page 10: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

9© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Events – Hannover Messe 2015

Hannover Messe 2015 – India Partner Country• Hannover Messe 2015 ( Hannover Fair) is the biggest

industrial fair of the world • This year India was the partner country for the Hannover

Industrial fair inauguration by Germany Chancellor Angela Markel along with PM Narendra Modi

• This step not only saw the “Make in India” movement take a global dimension but also paved the path for several new investment avenues and stronger economic engagement with India

• About 300 Indian engineering companies including public sector giants participated in the fair showcasing India’s capabilities in global trade

• Indian pavilion was crafted to portray the country’s most fertile sectors – Biotechnology , renewable energy , space , IT&BPM, industrial corridors and small cities , wellness , and the demographic divided it aims to reap

• A positive fervor was visible for India as Senior Indian government officials and business leaders reached out to German and European industries and institutions

• A number of agreement/MOUs and business deals were concluded during the Hannover Messe 2015

Page 11: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

10© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Events – Hannover Messe 2015

Hannover Messe 2015 – Maharashtra

• Maharashtra was also one of the leading state to participate in the Hanover Industrial Fair

• Maharashtra was the only state to have an open Investor Forum at the Hanover Fair w

• Maharashtra CM Devandra Fadnavis said “Instead of talking and promising My Government believes in action”. He cited example of Mercedes plant where speedy approval was given for its expansion which was held up because of environments issues. Schindler, which was prevented from operating due multiple application of state level River regulatory zone, both plants have now commenced operations.

• Many German companies such as Volkswagen , Rittal , Bosch ,Endress Hauser, Mercedes , Thyssen Krupp expressed interest to expand their current operations in Maharashtra

• CM also pursued the problem faced by Indian suppliers and ancillary industry of major automobile industry in Maharashtra

• CM had a series of meeting with SaaB , Swedish Defense Manufacturing , where he showcased Maharashtra advantage in Aircraft Maintenance and Aeronautics manufacturing

Page 12: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

11© 2015 KPMG International Cooperative (”KPMG International”), a Swiss entity. Member firms of the network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Events – Israel AgriTech Exhibition 2015

Israel ArgiTech Exhibition 2015

• Maharashtra CM Devendra Fadvanis participated in AgritechIsrael 2015 , the 19th Agricultural Technology Exhibition , one of the world’s most important exhibition in the field of agricultural technology

• CM inaugurated the Exhibition with Israeli Agricultural Minister Mr Yasir Shamir

• Govt of Maharashtra and Municipality of Tel Aviv had a discussion on smart city partnership

• CM also met officials of Jethro and Dimiter ,both research and technology groups, which agreed to dispatch expert teams to Yavatmal and Osmanabad to study farmer’s problems

• CM also surveyed the Tel Aviv war room from where security, emergencies , surveillance and analysis can be done.

• CM also addressed a symposium on Indo – Isrealcollaboration and spoke on Maharashtra’s capability , skilled manpower , ease of doing business and proactive state support.

• CM thanked Indian and Israel industry for showing great interest in expanding base in Maharashtra

Page 13: MahaConnect The Business Newsletter - cms.midcindia.orgcms.midcindia.org/MahaconnectArchive/April2015.pdf · many multinational companies belonging to key sectors like Textile, Food

For feedback, write to us at:

Email: [email protected] us: Maharashtra Industrial Development Corporation

Udyog Sarathi Mahakali Caves Road, Andheri (E), Mumbai – 400 093

Phone: +91-022-26870052/54/73; Fax: +91-022-26871587Email: [email protected]