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  • 8/16/2019 Manufacturing Destinations of India July2014

    1/24

     July 2014

     Manufacturing Destinations of India:

     A Real Estate Overview

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     Foreword In this white paper, we illustrate the trends

    in the growth of the manufacturing sector in

    India. We then proceed to recommend growth

    opportunities for manufacturing occupiers in

    the coming years. The sectors considered for the

    study include pharmaceuticals/biotechnology,

    automobiles, heavy engineering, fast-moving

    consumer goods (FMCG), electronics and

    communications & aviation. These sectors

    have been chosen as major manufacturing

    areas because of their contribution to the

    manufacturing sector in India.

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    Overview of the Manufacturing Sector in India

    Evolution and Growth of the Sector

    India was hardly an industrialised country at the time of gaining

    independence, and the rst step India took was to recognise the

    manufacturing sector as a very important instrument for the country’s

    economic growth. In every ve-year plan, the country continued to

    grow the manufacturing sector whilst encouraging and incentivising

    the private sector in the mid-cap and small-cap realms. Progressively,

    India strengthened its manufacturing sector further under a mixed

    economy from 1947 to 1991, and under a liberalised economy since

    then.

    India’s manufacturing exporters have played a key role in

    promoting the sector’s prowess to consumers across the world.

    Manufacturing exports have always been a major contributor to

    India’s total merchandise exports. The main export markets for Indian

    manufacturing goods are the United States and Western Europe.

    Within Western Europe, Germany and the United Kingdom are two

    most important export markets.

    Prominent Manufacturing Clusters

    Manufacturing clusters have developed along major infrastructure corridors.

    These are specic areas developed for inter-regional industrial growth,

    including the development of manufacturing areas and clusters along the

    corridor. These corridors provide infrastructure such as roads, power and

    other utility services to facilitate the growth of manufacturing industries

    and regional economic development. Industrial development in India is

    scattered and can be divided into four zones—north, south, east and west.

    The chart below shows the major industrial states and cities in each zone.

    India’s ManufacturingFootprint

    DELHI/ NCR

     AHMEDABAD

    PUNE

    HYDERABAD

    BANGALORE

    CHENNAI

    MUMBAI

    KOLKATA

    • Automobiles• Fast Moving Consumer Goods (FMCG)• Heavy Industries

    • Automobiles

    • Fast Moving Consumer Goods (FMCG)• Heavy Industries

    • Automobiles• Fast Moving Consumer Goods (FMCG)

    • Heavy Industries

    • Automobiles• Fast Moving Consumer Goods (FMCG)

    • Heavy Industries

    • Life Sciences (Pharma and Bio-technology)• Automobiles

    • Fast Moving Consumer Goods (FMCG

    • Life Sciences (Pharma and Bio-technology)• Automobiles

    • Electronics and Communication• Aerospace

    • Life Sciences (Pharma and Bio-technology)

    • Life Sciences (Pharma and Bio-technology)

    MANUFACTURING ZONES IN INDIA

    West Zone 

    Mumbai, Pune, Bhiwadi, Jaipur,

     Ahmedabad, Vadodara and Panaji

    North Zone

    Delhi (NCR)/Gurgaon, Kanpur,

    Lucknow, Chandigarh and Indore

    East Zone

    Kolkata, Guwahati, Patna and

    Jamshedpur 

    South Zone 

    Hyderabad, Visakhapatnam,

    Bangalore, Chennai and Coimbatore

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    LIFE SCIENCES (Pharmaceuticals and Biotechnology)

    Biocon | Dr Reddy’s Laboratories | Cipla

    Sun Pharmaceutical | Cadila Healthcare

    The United Nations Industrial DevelopmentOrganization (UNIDO) recognises India as one

    of the top-ranking countries among developing

    countries in terms of the production and

    distribution of pharmaceuticals.

     According to the Department of Pharmaceuticals,

    the pharmaceutical industry in India is the world’s

    3rd largest in terms of volume and 14th in terms

    of value.

     According to a recent report by Ernst & Young

    (E&Y), the biotechnology sector in India isexpected to achieve revenue of USD 11.6 billion

    by 2017, growing at a compound annual growth

    rate (CAGR) of 22%.

    ELECTRONICS ANDTELECOMMUNICATIONS

    Philips | Sony | Havells 

    LG | Samsung

     According to the Department of Electronics and

    Information Technology, the current size of the

    electronic manufacturing industry is USD 70 billion

    and is aimed for USD400 billion by 2020, which

    means the industry must increase by more than

    ve times over the next seven years.

    AUTOMOBILES 

    Ford | Ashok Leyland | Renault Nissan 

    Maruti Udyog | Tata Motors

    The production of passenger vehicles in India

    was recorded at 3.23 million in 2012–2013 and

    is expected to grow at a CAGR of 13% during

    2012–2021, according to data published by the

     Automotive Component Manufacturers Association

    (ACMA) of India.

       K  e  y

       F  a  c   t  s  a   b  o  u   t   M  a   j  o  r   M

      a  n  u   f  a  c   t  u

      r   i  n  g   I  n   d  u

      s   t  r   i  e  s

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    AEROSPACE

    Hindustan Aeronautics Limited (HAL) 

    UTC Aerospace Systems | Tyco Electronics 

    Dynamatic Technologies | StarragHeckert

    India is fast becoming a major global aerospace

    consumer market, aided by a combination of

    increasing defence spending, booming commercial

    aviation market and rising technological

    and manufacturing capabilities among local

    companies.

     According to the Investment Commission of India

    (ICI), investment opportunities of USD 110 billion

    are envisaged up to 2020, with USD 80 billion in

    new aircraft and USD 30 billion in the development

    of airport infrastructure.

    HEAVY ENGINEERING

    The engineering industry is the largest segment of

    all industrial sectors in India, accounting for 3% of

    India’s GDP and offering employment to more than

    4 million skilled and semiskilled workers.

    The Department of Heavy Industry (DHI), as its

    vision for 2020, plans that the Indian machine tools

    industry should secure a domestic market share of

    67% by 2020.

    Joseph Cyril Bamford (JCB) | Sany | Alfa Laval |

    Bharat Heavy Electricals Limited (BHEL) |

    LeeBoy

    FMCGFast Moving Consumer Goods 

    P&G | Indian Tobacco Company (ITC) | PepsiCo

    Coca-Cola | Amway

    The FMCG sector in India is the fourth largest

    sector in the economy. It is also called the

    consumer packaged goods sector. According to

    the Confederation of Indian Industry (CII), the

    FMCG sector in India had a market size in excess

    of USD 13.1 billion as of 2012.

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    NH- 228

    NH- 8

    NH- 228

    NH- 8A

    NH- 8A

    NH- 8

    NH- 947

    NH- 947

    NH- 59

    NH- 8

    NH- 8C

    NH- 8

    SH- 2

    SH- 71

    Nandasan

    Indrad

    Nani

    Kadi PartLunasan

    Pansar 

    Vadu

    Chhatral

    Bhalthi

    Vamaj

    Moti Bhoyan

     AmbikaNagar 

    Karan Nagar 

     Ambavpura

    Unali

    Santej

    Dantali

    Chharodi

    Kaneti

    Visalpur 

    SarkhejGam

    Morasar 

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    Chandisar 

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    JuvalRupavati

    Rampur 

    Sahij

     Ambareli

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    Gada

    Trambovad

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    VasoHeranj

    Ramol

    SandhanaMatar 

    Khadiyarapura

    Radhu

    Navagam

    Kanij

    Modaj

    Mahemdavad

    Jetalpur 

    Barejadi

    GIDC VatwaSingarva

    Vejalpur 

    BodakdevNikol

    Vastral Amraiwadi

    RakhialKujad

    Badodara

    Saijpur Bogha

    SabarmatiGota

    Sughad

    Valad

    Dabhoda

    Juna KobaKhodiyar 

    Infocity

    Urjanagar 1

    Shantigram

    Shiholi Moti

    Sonipur 

    Balva

    Lekawada

    Dhamasana

    Sector 26

    Shertha

    Nardipur 

     Aluva

    KADI

    BOPAL

    SANAND

    CHANGODAR

    BAVLA

    BAGODRA

    ASLALI

    DHOLKA

     VATAMAN

    KHEDA

    BAREJA

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    NARODA

    GANDHINAGAR

    KALOL

    THALTEJNARANPURA

    CHANDKHEDA

       Y

       W   H     D     A     B

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      V A M A

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       A   N   D   A   S   A   N

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     A  -  V    A  T    A  M    A  N   

     R   D  

    B AGOD AR A-DHOLK A

     RD

    Hotel The Westend

    Ginger HotelsComfort Inn

    President

    Evergreen Hotel

    Civil Hospital

     VadilalSarabhai Hospital

    Narayana Hrudalaya

    Fire Station

    Fire Station

    Fire Station

    Fire Station

    Fire Station

    Electric SubStation

    Vatrak River 

    Chandola

    Lake

    Kankaria

    Lake

    S      a     b    i v    a     Rr     i  e     m a t

    r     

    Thol BirdSanctuary

    IndrodaNature Park

    CHANGODAR

    INDUSTRIAL AREA

    SANAND

    INDUSTRIAL

    AREA

    ASLALIINDUSTRIAL AREA

     VATVA

    INDUSTRIAL AREA

    NARODA

    INDUSTRIAL AREA

    KADI

    INDUSTRIAL AREA

    KALOLINDUSTRIAL AREA

    KHEDA

    INDUSTRIAL AREA

    BAGODRA

    INDUSTRIAL AREA

    BAVLA

    INDUSTRIAL AREA

    SARDAR VALLABHBHAI PATEL INTL. AIRPORT

    A B C D

    A B C D

    1

    2

    3

    4

    5

    6

    7

    8

    1

    2

    3

    4

    5

    6

    7

    8

     AHMEDABAD

     MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

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     Ahmedabad 

     Population 

    6.3 million

     Density

    12,000/sq km

    City Rank 

    Seventh

     Ahmedabad has been the major hub for the pharmaceutical industry

    in India for a long time with the presence of large players such as

    Zydus, Intas and Claris. However, after the inauguration of the Tata

    Motors plant for the manufacturing of the ‘Nano’ in 2010, it emerged

    as a major manufacturing destination in the automobile, engineering

    and FMCG sectors as well. Some of the major players that have

    forayed in the market since then include Ford Motors, Bosch, Hitachi

    Hi-rail, Colgate Palmolive and Gardner Denver, to name a few.

    Excellent infrastructure, including the availability of natural gas,

    reliable power and excellent road connectivity, has been the major

    advantage for Ahmedabad as a manufacturing destination.

    Several manufacturing companies such as the Adani Group, Reliance

    Industries, the Nirma Group of Industries, Arvind Mills, Claris

    Lifesciences, Cadila Pharmaceuticals, Shell, Vadilal Industries, Rasna,

    Bosch Rexroth, Stork and Rollepaal, are present in Ahmedabad.

     Ahmedabad has well-developed infrastructure, which is conducive

    to the growth of manufacturing industries. The submarkets are well

    connected by road, rail and air transport system with the rest of the

    country and other parts of the state.

    MAJOR MANUFACTURING OCCUPIERS

    Occupier Occupier Type  Area(Acres)

    Location

    Tata Motors Automobiles 1,250 Sanand

    Ford Motors Automobiles 450 Sanand

    Gardner Denver Engineering 4.8 Changodar 

    Inbisco FMCG 21 Sanand

     ALSTOM BharatForge

    Engineering 60 Sanand

    Teva Pharma 50 Sanand

    Nestle FMCG 80 Sanand

    Colgate Palmolive FMCG 25 Sanand

    Oerliekon Engineering 25 Sanand

    Source: Research and REIS, JLL

    Temperature 

    Max 32.3 °CMin 27.4 °C

    MANUFACTURING CORRIDORS

    Manufacturing Corridor Major Industries Major Locations Land Value(INR per sq ft)

    Monthly Rent(INR per sq ft per month)

    12-MonthDemand Outlook

    State Highway 17(SH 17) (Sanand–

    Viramgam Highway)

     Automobiles

    EngineeringSanand GIDC 200–550 18–30

    NH 8A(Ahmedabad–Rajkot

    Highway)

    Pharmaceuticals Biotechnology Changodar–Bagodra 350–700 18–28

    NH 8 (Ahmedabad–Vadodara Highway) FMCG Aslali–Kheda 300–550 10–15

    SH 41(Mehsana Road)

    EngineeringMetal Mehsana 350–700 14–22

    Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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    NH- 48

    NH- 44

    NH- 44

    NH- 205

    NH- 205

    NH- 205

    NH- 18

    NH- 18

    NH- 219

    NH- 234

    NH- 234

    NH- 219

    NH- 66

    NH- 68

    NH- 209

    NH- 209

    NH- 209

    NH- 212

    NH- 4

    NH- 234

    NH- 206

    NH- 4

    NH- 7

    SH- 85

    SH- 17

    SH- 17

    SH- 82

    SH- 96

    SH- 5

    SH- 96

    SH- 87

    SH- 9

    Huliyar 

    Chiknayakanhlli

    Sira

    Kadirihalli

    Rolla

    Pavagada

    Madakasira

    Thumakunta

    Turuvekere

    Channarayapattana

    Krishnarajpet   Melukote

    Nagamangala

    Chakkuru

    SrirangapatnaMalavalli

    Kollegal

    Mangala

    Billgundala

    Denkanikottai

    Marandahalli

    Neraluru

    Kanakapura

    Kambainallur 

    Palacode

    Male Mahadeshwarabetta

    Kongadai   Jalakandapuram

    Mecheri

    Hanur 

    Hura

    Kelamangalam

    Koppa Anekal

    Kuppam

    Kolar 

    Belatur 

    HSRLayout

    Magadi

    Vidyaranyapura

    Belluru Yadiyur 

    Koratagere

    Dhiburahalli

    Gownipalli

    Sidlaghatta

    Kempegowda

    Srinivaspur 

    Gauribidanur 

    Bagepalli

     Amadagur 

    Puttaparthi

    Galiveedu

    Nallacheruvu

    Lakkireddipalli

    Gurram Konda

    Chinnamandem

    Palamaner 

     Ambur 

     Alangayam

    Uthangarai

    Yercaud

    Pappireddipatti

    Vazhapadi

    TUMKUR

    MADHUGIRI

    DABASPETETIPTUR

    MYSORE

    NANJANGUD

    GUNDLUPET

    CHAMARAJANAGARA

    MANDYA

    KRISHNAGIRI

    DHARMAPURI

    HARUR

    METTUR

    SALEM

    RAMANAGARA

    TIRUPATTUR

     VANIYAMBADI

    ELECTRONICS CITY

    HOSUR

    KUNIGAL

    KOLAR GOLD FIELDS

    MULBAGAL

    DODDABALLAPUR

    CHIKKABALLAPUR

    HIRIYUR

    PENUKONDA

    HINDUPUR

    RAYACHOTI

    KADIRI

    MADANAPALLE

    KURABALA KOTA

    CHINTAMANIPUNGANUR

     M  Y S O

     R E  R O

     A D H  O  S  U  R   R  O   A  D  

    T     U     M     K     U     R    

     R    O     A    D    

    Ginger Hotel

    Lalitha MahalPalace Hotel

    GoldenLandmark

    Jayamahal Palace Hotel

    The LeelaPalace

    Koshy's Hospital

    Sagar Hospital

    JSS Hospital

     Vaidehi Hospital

    KrishnarajaSagara Reservoir 

    Stanley Reservoir 

    Fire Station

    Fire Station

    Fire Station

    Fire Station

    Fire Station

    Fire Station

    Electric SubStation

    Electric SubStation

    Electric SubStation

    Electric SubStation

    PedduruReserve Forest

    KalrayanHill Forest

    Lower KalrayanHill Forest

    KoundinyaWildlife

    Sanctuary

     VASANTHANARASAPURA

    INDUSTRIAL AREA

    DABASPETE

    INDUSTRIAL AREA

    DODDABALLAPUR

    INDUSTRIAL AREA

    HOSKOTE

    INDUSTRIAL AREA

    HAROHALLI

    INDUSTRIAL

    AREA

    JIGANI

    INDUSTRIAL

    AREA

    BIDADI

    INDUSTRIAL

    AREA

    BOMMASANDRA

    INDUSTRIAL AREA

    ATTIBELE

    INDUSTRIAL AREA

    KUMBALGODU

    INDUSTRIAL AREA

    PEENYA

    INDUSTRIAL AREA   MALUR

    INDUSTRIAL AREA

    AERO SEZ

    HARDWARE PARK

     VEMAGAL

    INDUSTRIAL AREA

    NARSAPURA

    INDUSTRIAL

    AREA

    BANGALORE INTL. AIRPORT

    A B C D

    A B C D

    1

    2

    3

    4

    5

    6

    7

    8

    1

    2

    3

    4

    5

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    7

    8

    BANGALORE 

     MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

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    Bangalore

     Population 

    8.4 million

     Density

    11,470/sq km

    City Rank 

    Fifth

    Temperature 

    Max 38.9 °CMin 10.6 °C

    Bangalore, the state capital of Karnataka, is strategically located in

    South India. After India’s independence, during 1950s to 1960s, major

    public sector heavy industries such as BHEL, Bharat Earth Movers

    Limited (BEML), Hindustan Machine Tools (HMT) and Indian Telephone

    Industries (ITI), as well as knowledge-based production facilities such as

    HAL started their operations in Bangalore.

    During the 1980s–1990s period, Bangalore evolved as a favourite

    destination for IT and IT-enabled services (ITeS).

    The steady rise of Bangalore as a global manufacturing hub is supported

    by the presence of leading education and research institutions; a large

    number of large-scale and knowledge-based public sector industries and

    small-scale industries; a highly procient English-speaking and relatively

    economically large labour pool; and a stable and liberal socio-political

    environment.

     At present, the government is developing more industrial areas in andaround Bangalore to attract investments. In the recent past, Bangalore

    emerged as a favourite destination for the automotive industry.

    MAJOR MANUFACTURING OCCUPIERS

    Occupier Occupier Type  Area(Acres)

    Location

    Volvo Automobiles 122 Old Madras Road

    (OMR)LM WindPower 

    Engineering 40 Tumkur Road

    Honda Automobiles 96 Narasapura

    Scania Automobiles 35 Narasapura

    Mahindra Aerospace

     Aerospace 25 Narasapura

    Biocon Pharmaceuticals 90 Bommasandra

    ToyotaKirloskar 

     Automobiles 432 Bidadi

    Bosch India  Automobiles 97 Bidadi

    Source: Research and REIS, JLL

    MANUFACTURING CORRIDORS

    ManufacturingCorridor 

    Major Industries Major Locations Land Value(INR per sq ft)

    Monthly Rent(INR per sq ft per month)

    12-MonthDemand Outlook

    Tumkur Road Pharmaceuticals/biotechnology Engineering

    Peenya 1,600–2,100 25–30

    Dabaspet 200–300 11–14

    OMREngineering Automobiles

    Pharmaceuticals Electrical and electronics

    Hoskote 400–500 14–16Whiteeld 2,400–2,800 25–30

    Narasapura 250–350 16–20

    Hosur Road Pharmaceuticals/Biotechnology Engineering

    Bommasandra–Jigani 900–1,000 18–24

     Attibele 600–700 16–20

    Mysore Road Automobiles and auto

    componentsFMCG

    Bidadi 250–350 18–22

    Kumbalgodu 700–900 18–22

    Bellary Road  AerospaceElectronics and hardware

     Aerospace SEZ,Hardware Park

    400 N/A

    Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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    NH- 205

    NH- 205

    NH- 45

    NH- 4

    SH- 121

    SH- 5 SH- 116

    SH- 58

    SH- 118A

    SH- 57

    SH- 52

    SH- 51

    NH- 4

    NH- 45

    NH- 46

    NH- 205

    NH- 205

    NH- 18A

    NH- 5

    Pallipattu

    Pothatturpettai

    Banavaram

     Ammoor 

    Mangadu

    Mazhayur 

    Mecheri

    Vembi

    Mambakkam

    Sengadu

    Peranamallur 

    Desur 

     Ammanambakkam Nethapakkam

    Madurantakam

    Periayakattupakkam

    Kunnathur 

    Kolambakkam

    Melapattu

    Perunagar 

    Ukkal

    Puthali

    Mamandur 

    Maiyur 

    Walajabad

    Thenneri

    Vedekkal

    Perumbulipakkam

    Thakkolam

    Nemili

    Mappedu

    Perambakkam

    Kilpakkam

    Poondi

    Venmanambudur 

    Senneri Agaram

    Nallattur 

    Nagalapuram

    Narayanavanam

    S.B.R.Puram

    Chinnapandur 

    Sathyavedu

    Sricity   Ramapuram

    Tada

    Venadu

    Sriharikota

    Tiruchanur 

    Renigunta

    Bandarupalli

    Pulicat

    Kavaraipettai

    Ponneri

    Minjur 

    Ennore

    Tiruvottiyur 

    Madhavaram

     Ambattur GeorgeTown

    Mogappair 

    Porur 

    Guindy   Adyar 

    Chromepet

    Tambaram

    Sholinganallur 

    Mambakkam

    Thirukkazhukundram

    Nemmeli

    Sirudavoor 

    Kelambakkam

    Karumbakkam

    PUTTUR

    SHOLINGHUR

    ARCOT

    CHENGALPATTU

    KANCHIPURAM

    CHEYYAR

     VANDAVASIMEIYUR

    SRIPERUMBUDUR

    ARAKKONAM

    THRIVALLUR

    THIRUTHANI

    NAGARI

    GUMMIDIPOONDI

    SULLURUPETA

    SRIKALAHASTI

    TIRUPATI

    AVADI

     VELACHERY

    MARAIMALAINAGAR

    T  I R U  P  A T  H  I  R D 

    S  A T  H  Y   A V  E  D U   R D 

    C HI T TOO R  R D

    U T H I R  AM E R U R  R D 

         O     M     R

             E        A        S         T        C        O        A        S         T         R         D

         O     M     R

    Poondi Lake

    Pulicat Lake

    BAY OF 

    BENGAL

    Puzhal Lake

    ChembarambakkamLake

    Palar River 

    Kolavai Lake

    MadurantakamLake

    KaveripakkamLake

    Sri VenkateswaraNational Park

    Nagiri HillsReserve Forest

    KambakkamReserve Forest

    PalemForest

    Ponnur 

    ReservedForest

    Peria Puliyur Forest

     VHS Hospital

    Parvathy Hospital

    Hindu Mission HospitalMeenakshi MedicalCollege Hospital& Research Institute

    Fortis Malar Hospital

    Sri RamchandraHospital

    Radisson Blu Hotel

    The Trident

    Vivanta by Taj - Fisherman's Cove

    ITC Grand Chola

    Fire Station

    Fire Station

    Fire Station

    ElectricSub Station

    Electric SubStation

    Electric SubStation

    GUMMIDIPUNDI

    INDUSTRIAL AREA

    SRIPERUMBUDUR

    INDUSTRIAL AREA

    ORAGADAM

    INDUSTRIAL AREA

    MARAIMALAI NAGAR

    INDUSTRIAL AREA

    IRUNGATTUKOTTAI

    INDUSTRIAL AREA

    THERVOY KANDIGAL

    INDUSTRIAL AREA

    CHENNAIINTERNATIONAL

    AIRPORT

    A B C D

    A B C D

    1

    2

    3

    4

    5

    6

    7

    8

    1

    2

    3

    4

    5

    6

    7

    8

    CHENNAI 

     MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

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    Chennai

     Population 

    8.6 million

     Density

    11,000/sq km

    City Rank 

    Fourth

    Chennai is the fourth most populous metropolitan area in India. The city’s

    economy has a broad industrial base, spanning the automobile, computer,

    technology, hardware manufacturing, nancial services and health-care

    industries. Chennai is India‘s second largest exporter of software, IT and

    ITeS. The city, accounting for 60% of the country‘s automotive exports, is

    rightly coined ‘the Detroit of Asia’.

    Chennai‘s economic development has been closely tied to its port and

    transport infrastructure, which is considered as the best infrastructure in

    India. The city is served by two major ports—Chennai Port and Ennore

    Port. Chennai Port is India‘s second busiest container hub, handling

    general industrial cargos and automobiles, among others. The Ennore Port

    handles cargos—such as coal, ore and bulk—and break bulk cargos.

    The major industrial locations of Sriperumbudur and Oragadam receive

    investment from major MNCs, such as Renault Nissan, Daimler and

    Yamaha.The availability of cheap government-subsidised land in and around

    Chennai is limited, and the government is acquiring additional land to meet the growing demand. Leading private developers such as

     Ascendas and Mahindra World City have also made investments to create manufacturing zones around Chennai.

    MAJOR MANUFACTURING OCCUPIERS

    Occupier Occupier Type  Area(Acres)

    Location

    Renault Nissan Automobiles 1000 Oragadam

    Daimler Automobiles 400 Oragadam

    Yamaha Automobiles 400 Oragadam

     Ashok LeylandNissan

     Automobiles Multiple Multiple

    Royal Eneld  Automobiles 50 Oragadam

    Michelin Automobiles 300 Thervoy Kandigai

    Philips Carbon  Automobiles 80 Thervoy Kandigai

     Amway FMCG 50 Nilakkottai

    Source: Research and REIS, JLL

    Temperature 

    Max 45 °CMin 32.8 °C

    MANUFACTURING CORRIDORS

    Manufacturing Corridor Major Industries Major Locations Land Value(INR per sq ft)

    Monthly Rent(INR per sq ft per month)

    12-MonthDemand Outlook

    Sriperumbudur(NH 4)

     AutomobilesFMCG

    Light engineeringElectronics and hardware

    Irungattukottai 800–1,050 22–30

    Sriperumbudur 450–550 20–26

    Oragadam  AutomobilesElectronics and hardware

    Oragadam 350–550 20–25

    Grand SouthernTrunk Road

    (NH 45)

     AutomobilesTextilesFMCG

    Marai Malai Nagar 800–1,050 18–22

    Grand NorthernTrunk Road

    (NH 45)

     AutomobilesFMCG

    Heavy engineering

    Thervoy Kandigai 100–300 18–22

    Gummidipoondi 150–250 18–20

    Source: Research and REIS, JLL

    Strong/marginal decline Stable Marginal/strong increase

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    NH- 58

    SH- 12

    NH- 58

    NH- 119

    NH- 58

    NH- 91

    NH- 91

    NH- 235

    NH- 235

    NH- 91

    NH- 2

    NH- 2

    NH- 24

    NH- 71B

    NH- 71B

    NH- 8

    NH- 8

    NH- 71

    NH- 71

    NH- 10

    NH- 10

    NH- 10

    NH- 1

    NH- 1

    NH- 1

    NH- 71A

    NH- 71A

    NH- 71

    SH- 14

    SH- 14

    SH- 82

    SH- 82

    SH- 78

    SH- 57

    SH- 13

    SH- 13

    SH- 44SH- 14

    SH- 52

    SH- 24

    SH- 22

    SH- 20

    SH- 20

    Rahra

     Assandh

    Dhatrath

    Gharaunda

    SushantCity

    Huda

    Urlana Kalan

    SamalkhaNidani

    Banwasa

    Mundlana

    Julana   Ganaur 

     AshokNagar 

    Rithal

    Gorar 

    KharkhodaMokhra

    LakhanMajra

    Bawana

    SamplaKabulpur 

    Daola

    Chandpur Dhanirwas

    Kosli

    Badli

    PataudiKhuspura

    Khaleta

    Bilaspur 

    Guraora

    Nuh

    Bawal

    Mandhan

    Dehana

    Tijara

    Mundawar 

    Shahjahanpur 

    Pahari

    Badkli

    Punhana

    Kosi Kalan

    Hasanpur 

    Kalanjar 

    Jattari

    Bajna

    Jewar Palwal

    Ballabhgarh

    Birampur 

    Makanpur 

    GautamBuddha Nagar 

    Sohna

    Badarpur 

    Vasant Kunj

    Dwarka

    Greater Noida

    Chhapraula

    Muradnagar 

    Shahdara

    NarelaModinagar 

    Daulcha

    Bamnauli

    Kirthal

    Shamli

    Shahpur 

    CharthavalJhinjhana

    Bakdoli

    Chhapar 

    Khatauli

    Daurala

    Jahidpur 

    Kharkhauda

    Pilkhuwa

    Gulothi

    Kaseru

    Pisawa

    Khair 

     Arni

    Mahdaura

    PANIPAT

    ROHTAK

    SONIPAT

    GOHANA

    SAFIDON

    JIND

    MUZAFFARNAGAR

    MEERUT

    KANDHLA

    BUDHANA

    SARDHANA

    BAHADURGARH

    JHAJJAR

    MANESAR

    GURGAON

    GHAZIABAD

    NEW DELHI

    NOIDA

    FARIDABAD

    HAPUR

    AURANGABAD

    NEEMRANA

    REWARI   BHIWADIDHARUHERA

    FIROZPUR

    JHIRKA

    HODAL

    KHURJA

    BULANDSHAHR

    SIKANDRABAD

    DADRI

    BARAUT

    JANSATH

    DEOBANDKARNAL

    Y              A             M              U              N              A             E              X              P             Y              

       M  A   W

      A   N  A    B   Y   P  A

      S  S

     T A U R U  R

     D

    H I S  AR  R D 

            G        O         H        A         N

            A    -         R        O         H         T        A         K         R         D

    Hotel Trident

    Crown Plaza

    The Oberoi

    G.B.Pant

    IndraprasthaApollo

    Army BaseHospital

    Y     a   m   u   n   

    a    R    i     v    e   r    

    Y       a     m     u     n     a      R      

    i       v     e     r     

           Y    a     m     u     n

        a       R

          i     v    e     r

    Fire Station

    Fire Station

    Fire Station

    Electric SubStation

    Electric Sub

    Station

    Electric SubStation

    Electric SubStation

    Electric SubStation

    AsolaWild Life

    Sanctuary

    PANIPAT

    INDUSTRIAL AREA

    ROHTAK

    INDUSTRIAL AREA

    SONIPAT

    INDUSTRIAL AREA

    MEERUT

    INDUSTRIAL AREA

    BAHADURGARH

    INDUSTRIAL AREA

    GHAZIABAD

    INDUSTRIAL AREA

    MANESAR

    INDUSTRIAL AREA

    DHARUHERA

    INDUSTRIAL AREA

    BAWAL

    INDUSTRIAL AREA

    FARIDABAD

    INDUSTRIAL AREA

    NOIDA &

    GREATER NOIDA

    INDUSTRIAL AREA

    SIKANDRABAD

    INDUSTRIAL AREA

    PALWAL

    INDUSTRIAL AREA

    NEEMRANA

    INDUSTRIAL AREA

    IGI INTERNATIONAL AIRPORT

    A B C D

    A B C D

    1

    2

    3

    4

    5

    6

    7

    8

    1

    2

    3

    4

    5

    6

    7

    8

    DELHI NCR

     MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

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    Delhi NCR

     Population 

    16.3 million

     Density

    11,297/sq km

    CityRank 

    Second 

    The manufacturing sector plays a vital role in the economic

    development of the National Capital Region (NCR). The region has

    a wide variety of industrial products, including high-value and high-

    technology goods. The manufacturing submarkets of the NCR region

    are regulated under the development norms of a few nodal authorities,

    which include the Department of Industries, the Delhi Development

     Authority (DDA), Delhi State Industrial Development Corporation

    (DSIDC), Haryana Urban Development Authority (HUDA), Rajasthan

    State Industrial Development and Investment Corporation (RIICO) and

    Uttar Pradesh State Industrial Development Corporation (UPSIDC).

    The development of the industrial clusters and their supporting

    infrastructure is undertaken by these nodal authorities or by a few

    cooperative societies.

    Several manufacturing companies such as Maruti Suzuki, Ranbaxy

    Laboratories, Escorts Group, Honda, GSK Consumer and Nestlé India are present in the NCR.NCR has been able to attract sizable investment from multinational companies, large business houses, foreign investors, nonresident Indians

    and small-scale entrepreneurs. NCR is an investor-friendly region and offers a rich reservoir of skilled, motivated and relatively low-cost workers,

    with good infrastructure and harmonious industrial relations.

    MAJOR MANUFACTURING OCCUPIERS

    Occupier Occupier Type  Area(Acres)

    Location

    Maruti Suzuki  Automotive 600 Manesar 

    Ranbaxy Laboratories Pharmaceuticals 9.1 Gurgaon

    Honda Automotive 52 Manesar  

    Escorts Group EngineeringConglomerate

    250 Faridabad

    Nestle India Limited FMCG 7 Samalkha, Haryana

    GSK Consumer  ConsumerHealth Care

    140 Sonipat

    Source: Research and REIS, JLL

    Temperature 

    Max 31.4 °CMin 18.8 °C

    MANUFACTURING CORRIDORS

    Manufacturing Corridor Major Industries Major Locations Land Value(INR per sq ft)

    Monthly Rent(INR per sq ft per month)

    12-MonthDemand Outlook

    NH 1FMCGMetal

    Food processingPanipat and Sonipat 450–1,150 14–20

    NH 2  AutomobilesHeavy machineryMetal

    Faridabad 1,100–4,500 20–40

    Palwal 350–1,000 15–20

    NH 8  AutomotiveTextiles

    Manesar and Daruhera 900–1,800 17–30

    Neemrana 700–1,400 16–24

    NH 10 Food processingMetal

    Bhadurgarh and Rohtak 700–1,850 17–25

    NH 24Chemicals

    Food processingFMCG

    Ghaziabad 550–1,850 15–25

    NH 58ChemicalsFood processing

    FMCGMetal

    Ghaziabad 550–1,850 15–25

    Meerut 550–1,147 15–20

    Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

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    NH- 7

    NH- 16

    NH- 9

    NH- 202

    NH- 202

    NH- 7

    NH- 9

    NH- 7

    NH- 7

    NH- 167

    NH- 150

    NH- 218

    NH- 16

    NH- 167

    NH- 7

    NH- 9

    SH- 15

    SH- 217

    SH- 25

    SH- 10

    SH- 11

    SH- 15

    SH- 1

    SH- 6

    SH- 13

    SH- 10

    Deoni

    Jamkhandi

    Sirvar 

    Khanapur 

    Ullesugar 

    Gurmatkal

    Chittapur 

    Navandgi

    Malkhed

    Kalgi

    Chincholi

    Chitaguppa

    Chandankheri

    Rajoli

    Kanji

    Sirkatnalli

    Nittur 

    Hippalgaon

     Aurad

    Markhel

    Deoulwadi

    Jalkot

    Mukhed

    Kundalwadi

    Sangam

    Bichkunda

    Wajrakhandi

    Banswada

    Nizampet

     Alladurg

    Nyalkal

    Chandoor 

    Munipalli

    Marpally

    Shankarpalli

    Dharur Vikarabad

    Tandur 

    Pargi

    Kosigi

    Mohammadabad

    Devarkadra

    Patherched

    Komreddypally

    Sriramnagar 

    Shabad

    Pentlavelli

    Balmur 

    Nizamabad

    Srisailamgudem

    Kalwakurthy

    Mudigonda

     Amangal

    Bijnapalli

    Manchal

    Shivannaguda

    Shivampet

    Ramasagar 

    Chegunta

    Dubbak

    Domakonda

    Palwancha

    Sircilla

    Rudrangi Poodur 

    Vattimalla

     Athmakur 

    Bheemgal

    Sirikonda

     Armoor  Atmakur 

    Maddulapalli

    Choppadandi

    Jangapally

    Singapuram

    Koheda

    Ghanpur 

    Jangaon

     Aler 

     Atmakur(m)

    Valigonda

    Shapelly

    Narketpalli

    MarrigudaGhattuppal

    Yacharam

    NagarjunaSagar 

    Lakshmapur 

    Veldhurthy

    Guttalachenupenta

    Komarolu

    Thirumalagiri

    Marrigudem

    Makrekal

    Dharmaram

    Tirumalagiri

    Chennur 

    Gudur 

    Rahamatnagar 

    Kondapalakala

    BIDAR

    ZAHEERABAD

    BHALKI

     YADGIR

    MAHBUBNAGAR

    KUKATPALLY

    SECUNDERABAD

    SANGAREDDY DUNDIGAL

    SIDDIPET

    RAMAYAMPET

    MUSTABAD

     YELLAREDDY

    UDGIR

    AHMADPUR

    DEGLOOR

    HUSNABAD

    NARAYANPET

    DEVARSUGUR

    RAICHURGADWAL

    WANPARTI

    RAYAVARAM

    BHUVANAGIRI

    RAJAPET

    GENOME VALLEY

     VEMULAWADA

    JAGTIAL

    KORUTLA

    NIZAMABAD

     YACHARAM

    KAMAREDDY

     VARNI

    BODHAN

    FAROOQNAGAR

    KOLUKONDA

    KOLUKONDA

    KARIMNAGAR

    KAMALAPUR

    WADDEPALLE

    NALGONDA

    MACHERLA

    SRISAILAM

    ZAHEERABAD

    INDUSTRIAL AREA

    ISNAPUR

    INDUSTRIAL AREA

    PATANCHERU

    INDUSTRIAL AREA

    PASHAMYLARAM

    INDUSTRIAL AREA

    KALLAKAL

    INDUSTRIAL AREA

    MEDCHAL

    INDUSTRIAL AREA

    KONPALLY

    INDUSTRIAL AREA

    CHERLAPALLY

    INDUSTRIAL AREA

    KOTHUR

    INDUSTRIAL AREA

    SHAMSHABAD

    INDUSTRIAL AREA

    ADIBATLA

    INDUSTRIAL AREA

    AUTONAGAR

    INDUSTRIAL AREA

    HAYATHNAGARINDUSTRIAL AREA

    SINGHINAGAR

    INDUSTRIAL AREA

    JEDCHERLA

    INDUSTRIAL AREA

    Srisailam Dam

    JuralaReservoir 

    NagarjunaSagar 

    KrishnaRiver 

    Dindi River 

    Srisailam DamReservoir 

    KrishnaRiver 

    B      h      i       m     a      R      i       v     e     r     

    KaranjaReservoir 

    Singur DamReservoir 

    Nizamsagar Lake

    OsmanSagar 

    Himayat Sagar Lake

    Nandi Kot Kur Reserve Forest

    K    U    N    C   H     A   R    A   M    

     R   D   

    M  U  M  B  A I   H  W  Y  

    N     A   R    A   Y     A   

    N    K    H    E    D    R   D   

     P A R G I  R

     D

    Taj Krishna Hotel

    Novotel

    Hotel Minerva Grand

    Kamineni Hospital

    Prime HospitalFire Station

    Fire Station

    FireStation

    ElectricSub Station

    ElectricSub Station

    RAJIV GANDHIINTERNATIONAL AIRPORT

    A B C D

    A B C D

    1

    2

    3

    4

    5

    6

    7

    8

    1

    2

    3

    4

    5

    6

    7

    8

    HYDERABAD

     MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

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    Hyderabad 

     Population 

    7.7 million

     Density

    18,480/sq km

    City Rank 

    Sixth

    Hyderabad is a diversied economic zone with varied industries,

    including life sciences, FMCG and automobiles. During the

    1950s–1960s period, most of the Indian premier public enterprises

    were established in Hyderabad, giving an edge to the traditional

    manufacturing and bringing in technological advancements.

    The Andhra Pradesh Government, through its New Industrial Policy,

    aptly titled ‘Industrial Investment Promotion Policy (IIPP) 2010–2015’,

    places major emphasis on the creation of quality infrastructure;

    promotion of manufacturing investment zones and industrial corridors;

    and special focus on micro-sized, small-sized and medium-sized

    enterprises (MSMEs).

    The city has greatly benetted from setting up world-class

    infrastructure providing connectivity to the areas nearby, promoting

    industrial corridors along the national highways connecting to Nagpur,

    Bangalore, Mumbai and Vijayawada.The new policy is a good sign for Hyderabad, as more industries

    would provide a perfect balance to the IT boom in Hyderabad, where IT is still the dominant industry. Manufacturing would greatly strengthen and

    take advantage of the world-class infrastructure developed by the government and would provide employment and opportunities to a larger base

    of the economy.

    MAJOR MANUFACTURING OCCUPIERS

    Occupier Occupier Type  Area(Acres)

    Location

    Tata Advanced

    Systems

     Aerospace 50 Adibatla

    P&G FMCG 170 Kothur  

     AugustaWestland Aerospace 10 Shamshabad

    Mahindra andMahindra

     Automobiles 100 Zaheerabad

     Alexandria BiotechPark

    Biotechnology 300 Shamirpet

    ICICI KnowledgePark

    Biotechnology 200 Shamirpet

    Piramal Healthcare Pharmaceuticals 10 Medak

    Source: Research and REIS, JLL

    Temperature 

    Max 32.0 °CMin 20.2 °C

    MANUFACTURING CORRIDORS

    Manufacturing Corridor Major Industries Major Locations Land Value(INR per sq ft)

    Monthly Rent(INR per sq ft per month)

    12-MonthDemand Outlook

    Nagpur Highway,Karimnagar Highway Pharmaceuticals/biotechnology Medchal, Genome Valley,Kallakal, Kompally 350–450 10–16

    Mumbai Highway  AutomobilesFood processing

    Patancheru,Pashamylaram, Isnapur,

    Zaheerabad370–550 9–15

    Bangalore Highway,Shamshabad

    FMCGPharmaceuticals 

     Aerospace

    Shamshabad Airport, Adibatla, Kothur,

    Thimmapur, Jadcherla,Srisailam Highway

    200–750 10–17

    Vijayawada Highway  AutomobilesTextiles

     Autonagar, Sanghi Nagar,Hayathnagar, Cherlapally

    250–500 12–18

    Source: Research and REIS, JLL

    Strong/marginal decline Stable Marginal/strong increase

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    HowrahR.S.

    SealdahR.S.

    NH- 2

    SH- 2

    NH- 2

    NH- 117

    NH- 117

    NH- 6

    NH- 34

    SH- 15

    SH- 1

    SH- 6

    SH- 2

    SH- 13

    SH- 1

    SH- 15

    SH- 15

    Srikrishnapur 

    Shrirampur 

    KumrulHansnan

    Nabagram   Keshabpur 

    Bhandarhati

    Tarkeshwar Harishpur 

    Beraberi

    Haripal

    Parbbatipur 

    Bhimpur 

    Daluigacha

    Sheakhala Atpur 

    Jangipara

    Masat

    Gopinathpur 

    Begampur 

    Shankarhati

    Kashtasangara

    Dhulagori

     Amta

     Andul

    Nangi

     Alpur 

    Panchla

    HatgachhaRaipur 

    Balarampota

    Joarkole

    Falta

    Fatepur 

     Amarpur 

    Bishnupur 

    Julpia

    Dhamua

    Sahebpur Raghabpur 

    Subuddhipur 

    Naktala

    Dhakuria

    Kalighat

    Bhagabanpur 

    RajarhatNewtown

    MadhyamgramDankuni

    Mirpur 

    Rishra

    Noapara

    Titagarh

    Panihati

    Baidyabati

    Ichapur 

    Champdani

    Sankarpur 

    Dharampur 

    Bandel

    Bansberia

    Gayeshpur 

    Raghunathpur 

    KANCHRAPARA

    KALYANI

    HOOGHLY-CHINSURAH

    BHATPARA

    CHANDANNAGAR

    SINGUR

    BARRACKPORE

    KHARDAHA   BARASAT

    UTTARPARA

    KOTRUNGNORTH

    DUMDUM

    JAGATBALLAVPUR

    KOLKATA

    SOUTH

    DUMDUMNEW TOWN

    RAJARHAT

    GOPALPUR

    DUM DUM

    BALLYGUNGE

    BUDGE

    BUDGE

    ULUBERIA

    UDAINARAYANPUR

    BAGNAN

    HOWRAH

    LILUAH

    BARUIPUR

    RAJPUR

    SONARPUR

    JOKA

    SHYAMPUR

    BEHALA

    SANKRAIL

    SALF

    LAKE CITY

    GARIA

    MAHESHTALA

    DOMJUR

    DHANIAKHALI

    NATIONAL HIGHWAY-2

    INDUSTRIAL AREA

    DANKUNI

    INDUSTRIAL AREA

    KALYANI

    INDUSTRIAL AREA

    KALYANI

    EXPRESSWAY

    INDUSTRIAL AREA

    ALAMPUR

    INDUSTRIAL AREA

    DHULAGARI

    INDUSTRIAL AREA

    NATIONAL HIGHWAY 6

    INDUSTRIAL AREA

    ULUBERIA

    INDUSTRIAL AREA   JOKA

    INDUSTRIAL AREA

    DIAMOND

    HARBOUR ROAD

    INDUSTRIAL AREA

    Hooghly River 

    Hooghly River 

    Acharya JagadishChandra Bose Indian

    Botanic Garden

    G      R       A      N       D       T       R       U       N       K       R       D      

    D    U    R    G     A    P    U    R     E    X     P    Y     

    K   O   N    A   E   X   

    P   Y    AN D U L R D 

    K      A     L     Y      A     N      I       E      

    X      P     Y      

        K   A    L    Y

       A    N    I     E

        X    P    Y

    The FloatelHotel

    The Oberoi Grand

    Kenilworth HotelITC Sonar 

    Hyatt Regency

    SSKMHospital

    Nilratan Sarkar MedicalCollege and Hospital

    B.M. Birla HeartResearch Centre

    Fire Station

    Fire Station

    Fire Station

    ElectricSub Station

    ElectricSub Station

    Electric

    Sub Station

    ElectricSub Station

    NETAJI SUBHASHCHANDRA BOSEINTERNATIONAL AIRPORT

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     MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

  • 8/16/2019 Manufacturing Destinations of India July2014

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    Kolkata

     Population 

    14.1 million

     Density

    24,000/sq km

    City Rank 

    Third 

    Kolkata, including its metropolitan area, is the third most populous

    city in India and the main commercial and nancial hub of the

    eastern and north-eastern part of the country. Developments such

    as the huge leather complex that has been set up at Bantala and

    the export-processing zone that has been built in Falta, have paved

    the way toward the city being an industrial hub. In addition, industrial

    estates in Kalyani, Taratala, Dankuni, Kasba and Howrah, with

    specialised sectors such as the country‘s rst toy park and a gem

    and jewellery park, are spread throughout the metropolitan area.

    Kolkata‘s economic development has a close relationship to its port

    and transport infrastructure. There are two distinct dock system—a

    river port at Kolkata with 28 berths and a deep water port at Haldia

    with 12 berths. Kolkata port handles containers and industrial cargo

    while Haldia Port handles bulk cargos such as coal, ore and oil.

    The proposed draft of an industrial development policy aims toleverage the core competence and the state’s rich mineral base for

    the promotion of manufacturing such as engineering, chemicals,

    petrochemicals and its downstream industries, along with the

    introduction of the latest technology and foreign direct investment

    (FDI). Sunrise and high-tech industries will be promoted through

    policy and business process reform to create ease in doing business

    by the creation of a single window system for industrial start-ups. By

    doing this, the government will take a giant step toward growth.

    MAJOR MANUFACTURING OCCUPIERS

    Occupier Occupier Type  Area(Acres)

    Location

    Cadbury, PepsiCo, Rollick,

    and others. (SudharasFood Park) Food processing 100 Dhulagari

    Elkos, Seiko, amongothers. (Poly Park)

    Poly processing 60 Dhulagari

    Jute Mills (Reliance, Auckland, Alliance,

    Weaverly, among others)Jute industries 400 Multiple

    Coca Cola Food processing 20 Dankuni

    Himadri Chemicals Chemicals 40 Multiple

    Jayashree Textiles (AdityaBirla)

    Cotton 30 Rishra

    Britannia Industries FMCG 10 Taratala

    Century Ply Plywood 35 Multiple

    Eveready Battery plant 12 Multiple

    Keshoram Industries Cotton 20 Khidirpur  

    Source: Research and REIS, JLL

    Temperature 

    Max 31.7 °CMin 22.2 °C

    MANUFACTURING CORRIDORS

    Manufacturing Corridor Major Industries Major Locations Land Value(INR per sq ft)

    Monthly Rent(INR per sq ft per month)

    12-MonthDemand Outlook

    NH 6

    FMCGWarehousing

    Polythene Ferro-alloys

    Dhulagari and Alampur 350–500 14–18

    Uluberia 150–200 10–14

    NH 2 FMCGFerro-alloys

    Dankuni 250–300 13–17

    Diamond Harbour RoadPolythene 

    ManufacturingFMCG

    Joka 1,400–1,900 20–25

    Sirakol 200–250 8-–20

    Kalyani Expressway ChemicalsLight engineering

    Kalyani 200–300 8-12

    Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

  • 8/16/2019 Manufacturing Destinations of India July2014

    18/2418 Manufacturing Destinations of India: A Real Estate Overview

    NH- 8

    SH- 54

    NH- 8

    NH- 8

    NH- 3

    NH- 3

    NH- 3

    NH- 222

    NH- 17

    NH- 17

    NH- 4B

    NH- 4B

    NH- 4

    SH- 54

    Bhinar 

    Chandansar 

    Vatar Dhaniv

    Sai Nagar 

    Vasai West

    Poman

    Sai Nagar 

    VarsavaDongri

    Uttan

    Gorai

    ThaneWest

    DahisarEast

    Borivali

    KandivaliWest

    KandivaliEast

    MulundWest

    Kalwa

    Dighe

    Mumbra

     Airoli

    Ghansoli

    Kopar Khairane

    Bhandup

    West

    Goregaon

    East

     AndheriEast

    Malad West

    Versova

    Juhu

    Sakinaka

    Vashi

    Sanpada

    Dadar 

    Chembur 

    WorliParel

    Byculla

    Kalbadevi

    Fort

    Colaba

    Mahim

    Bandra West

    GharapuriVillage

    Seawoods

    Jasai

    JawaharlalNehru Port

    Trust Township

    JNPT

    Uran

    Karanja

    Revas

    Koproli

    Chowk

    Chinchavan

    Shedung

    Ulwe

    Koproli

    Kalamboli

    Panvel

    Taloje

    Kolegaon

    Sonar pada

    MukundNagar 

    Titwala

     Ambivli

    Gokul Nagar 

    Padgha

    Khadawali

     Angaon

     Akaloli

    Umbar PadaNandade VIRAR

    NALA SOPARA

     VASAI

    NAVGHAR

    BHIWANDI

    MIRA

    BHAYANDAR

    DOMBIVLI

    MUMBAI

    NAVI

    MUMBAI

    RASAYANI

    AMBARNATH

    BADLAPUR

    ULHASNAGAR

    KALYAN

    V   A J R E S H W   A R I  R D 

    J N P T  R D 

              J           N           P            T           R           D

                                                                                                  U                                                                                              R                                                                                            A                                                                                              N

                                                                                                   R                                                                                              D

    M     U     M     B    A    I     -  P    

    U     N     E      E     X     P    Y     

    The Taj Mahal

    Manama Hotel

    Trident

    Hotel Marine Plaza

    Grand Hyatt

    Tata Memorial Hospital

    INHS Ashwini Hospital

    Sir JJ Group of Hospitals

    VaitarnaRiver 

    Thane Creek 

    Back Bay 

    Morbe Dam

    Panvel Creek 

    Tulsi Lake

    Vihar Lake

    Powai Lake

    Ulhas River 

    Ulhas Ri ver

    Ulhas Ri ver

    Fire Station

    Fire Station

    Fire Station

    Fire Station

    Electric SubStation

    Electric SubStation

    Electric SubStation

    Electric SubStation

    Electric SubStation

    Karnala BirdSanctuary

    Sanjay GandhiNational Park

    THANE

    INDUSTRIAL AREA

    TTC

    MIDC

    PATALGANGA

    MIDC

    MAROL

    INDUSTRIAL AREA

    WAGLE

    INDUSTRIAL AREA

    TALOJE

    INDUSTRIAL

    AREA MIDC

    PANVEL

    WAREHOUSING

    AREA

    JNPT

    WAREHOUSING

    AREA

    BHIWANDI

    WAREHOUSING

    AREA

    CHHATRAPATI SHIVAJI INTERNATIONAL AIRPORT

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     MUMBAI 

     MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

  • 8/16/2019 Manufacturing Destinations of India July2014

    19/24  Manufacturing Destinations of India: A Real Estate Overview 19

     Mumbai

     Population 

    18.4 million

     Density

    22,937/sq km

    City Rank 

    First

    The manufacturing activity in Mumbai region is now primarily

    concentrated in the MIDC areas of Thane, the Thane-Belapur belt

    [Kalwa, Airoli and Trans-Thane Creek (TTC)], Taloja, Patalganga and

     Ambernath, and the non-MIDC areas of Patalganga, Khopoli and

    Pen, among others. Most of these areas are the rst MIDCs that were

    developed in the early 1960s to promote chemical, engineering and

    other auxiliary industrial units.

    The Thane-Belapur belt houses large-sized companies such as

    Mukund Steel, BASF, Siemens, RPG Life Sciences, Reliance Life

    Sciences and Nycomed. The areas of Taloja and Patalganga have more

    of the chemical, pharmaceutical and food product companies, such as

    Kellogg’s, Aditya Birla, Asahi Glass, Kingsher, Reliance Industries and

    Cipla. Some of these areas were considered out-of-town locations for

    the industries to survive.

     As the cities of Thane, Mumbai and Navi Mumbai developed, some ofthese areas changed into real estate developments.

    However, the state industry body, MIDC, has been proactive and is in the process of acquiring more land parcels in Patalganga, Ambernath and

    other surrounding areas.

    MAJOR MANUFACTURING OCCUPIERS

    Occupier Occupier Type  Area(Acres)

    Location

    Petronas Lubricants 24 Patalganga

    Cipla (three units) Pharmaceuticals 40 Patalganga

    Ruchi Soya Food processing 40 Patalganga

     Aditya Birla Nuvo Spatiality carbon 50 Patalganga

    Bombay Dyeing Polyester   30 Patalganga

    United Breweries FMCG 25 Taloja

    Hindustan Copper Metal and engineering 20 Taloja

    Kellogg’s Food processing 60 Taloja

    Lubrizol Chemicals 22 Turbhe

    Source: Research and REIS, JLL

    Temperature 

    Max 33 °CMin 16 °C

    MANUFACTURING CORRIDORS

    Manufacturing Corridor Major Industries Major Locations Land Value(INR per sq ft)

    Monthly Rent(INR per sq ft per month)

    12-MonthDemand Outlook

    MahapeChemical

    Pharmaceuticals Electronics

    Turbhe MIDC, GhansoliMIDC, Rabale MIDC, Airoli

    2,000-2,700 40–50

    Patalganga Addl. Patalganga

    550–1,100 22–25

    Thane Industrial areasI and II

    Pharmaceuticals Steel

    Tarapur MIDC Dombivali 1,000–1,800 22–30

     Ambernath, Murbad,Badlapur, Kalyan-Bhiwandi

    1,000–1,400 18–22

    Taloja MIDC

    ChemicalsTextile

    PharmaceuticalsElectronics

    Taloja MIDC 1,350–2,050 22–25

    Source: Research and REIS, JLLStrong/marginal decline Stable Marginal/strong increase

  • 8/16/2019 Manufacturing Destinations of India July2014

    20/2420 Manufacturing Destinations of India: A Real Estate Overview

    NH- 4

    NH- 4

    NH- 9

    NH- 9

    NH- 4

    NH- 4

    NH- 50

    NH- 50

    NH- 50

    SH- 65

    Salgaon

    Chinchodi

    Kadus

    Lakhangaon

    Ranjani

    Savindane

    Rajgurunagar 

    MukhaiKharabwadi

    Dehu   Chimbali

    TransportNagar 

    Wakad   Lohegaon

    WadgaonSheri

    WagholiKhadki

     Aundh

    Hadapsar 

    Phursungi

     Ambegaon

    Khurd

    Pirangut

    Bavdhan

    Manekhadi

    Mandhar 

    Jejuri

    Wadaki

    Ramnagar 

    Walhe

    Bhade Gaon

    KhandalaBalvadi

    Eksar 

     Asangaon

    Lonand

    Malavadi

    Tathavada

    Malthan

    Pimpalwadi

    Mudhale

    Karhati

    Barhanpur 

    Shivatkar 

    ChandgudeWadi

    Patas

    Kedagaon

    Pargaon

    Nhavare

    Tardobachiwadi

     Amble Nimone

    Lakhewadi

    Ranjangaon

    Nighoj

    Parner 

    Kanhoor 

    Chincholi

    Wakalwadi

    Bahul

    Koyali

    AMBEGAON

    NARAYANGAON

    PETH

    TALEGAON

    APATIPIMPRI

    CHINCHWAD

    LAVALE

    NANDED

    KOTHRUD

    ALANDI

    SASWAD

    BHOR

    SHIRGAON

    PHALTAN

    SANGAVI

    KURKUMBH

    URULI

    KANCHAN

    TALEGAON

    DHAMDHERE

    SHIRUR

    C H  AK  AN  S H I K R  AP U R  R D 

       S   H   I   R   U   R  -   S   A   N   G   A   V   I   R   D

    M U M B  AI  H W Y 

        S     H     I     R     U     R

      -    S    A     T    A     R    A     R     D

    BeverlyHills

    Hotel Aurora Towers

    Le Meridien

    GurudwaraCommand Hospital

    Noble Hospital

    Dhom Lake

    Veer Dam

    Bhatghar Dam

    Nira DevgharDam

    Chinchni Dam

    B  h i  m a  R  i  v  e r  

    ChasKaman Dam

    Bhama Askhed Dam

    KhadakvaslaLake

    Mu    -   t  h  a a   l  R    u   i     rv   e  M

    Fire Station

    Fire Station

    Fire Station

    Electric SubStation

    Electric SubStation

    Electric SubStation

    Electric SubStation

    KURKUMBH

    INDUSTRIAL AREA

    BARAMATIINDUSTRIAL AREA

    LONAND

    INDUSTRIAL AREA

    PHALTAN

    INDUSTRIAL AREA

    SHIRWAL

    INDUSTRIAL AREA

    KESURDI

    INDUSTRIAL AREA

    JEJURI

    INDUSTRIAL

    AREA

    PIRANGUT

    INDUSTRIAL AREA

    HINJEWADI

    INDUSTRIAL AREA

    PCMC

    INDUSTRIAL AREA

    TALEGAON

    INDUSTRIAL AREA

    KURULI

    INDUSTRIAL AREA

    CHAKAN

    INDUSTRIAL AREA

    KHED

    INDUSTRIAL

    AREA

    NAGAR ROAD

    INDUSTRIAL AREA

    SANASVADI

    INDUSTRIAL AREA

    SOLAPUR ROAD

    INDUSTRIAL AREA

    RANJANGAON

    INDUSTRIAL AREA

    SUPAINDUSTRIAL AREA

    PUNE INTL. AIRPORT

    SH- 58

    WAI

    MAHABALESHWAR

    KUDAL

    A B C D

    A B C D

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    PUNE 

     MAP NOT TO SCALE. Designed and published by JLL. Jones Lang LaSalle Property Consultants (India) Pvt Ltd © 2014. All rights reserved.

  • 8/16/2019 Manufacturing Destinations of India July2014

    21/24  Manufacturing Destinations of India: A Real Estate Overview 21

    Pune

     Population 

    5.0 million

     Density

    7,113/sq km

    City Rank 

    Eighth

    Pune has been the favourite industrial destination since the

    inception of the Pimpri-Chinchwad Municipal Corporation (PCMC)

    in the 1960s.

    Furthermore, the Maharashtra Industrial Development Corporation

    (MIDC) stimulated the growth of industries in Pune by acquiringland and providing the requisite infrastructure.

    Talegaon and Chakan are home to automotive giants such as

    Volkswagen, Mercedes Benz, Mahindra &Mahindra and General

    Motors, whereas Ranjangaon hosts all kinds of industries, such

    as automotive, white goods, jewellery, paints, food products and

    chemicals. The growth was aptly supported by trained manpower

    supplied by the various local and international educational

    institutions, the low cost of real estate and their proximity to the

    business capital of Mumbai and the port. As a result, the city has

    established itself as one of the most preferred locations in India forindustrial development.

    MAJOR MANUFACTURING OCCUPIERS

    Occupier Occupier Type  Area(Acres)

    Location

    Volkswagen  Automobiles 600 Chakan

    Mahindra & Mahindra Automobiles 750 Chakan

    Bridgestone  Automobiles 200 Chakan

    DaimlerChrysler Automobiles 100 Chakan

    Sany India HeavyEngineering

    100 Chakan

    Bajaj Auto  Automobiles 250 Chakan

    Fiat Automobiles 220 Ranjangaon

    Joseph Cyril Bamford (JCB) HeavyEngineering

    110 Talegaon

    General Motors Automobiles 300 Talegaon

    John Deere Automobiles 112 Sanaswadi

    Source: Research and REIS, JLL

    Temperature 

    Max 42.3 °CMin 31.59 °C

    MANUFACTURING CORRIDORS

    Manufacturing Corridor Major Industries Major Locations Land Value(INR per sq ft)

    Monthly Rent(INR per sq ft per month)

    12-MonthDemand Outlook

    Chakan  AutomobilesHeavy engineering

    Chakan Phase I, II, III andIV, Kuruli, Nanekarwadi,Kharabwadi and Nighoje,

    among others

    450–800 25–30

    Talegaon Automobiles

    Heavy engineering Talegaon MIDC 400–600 25–28

    Nagar Road

     AutomobilesFMCG

    ElectronicsChemicals

    Heavy engineering

    Lonikand, Phulgaon,Sanaswadi 300–500 22–27

    Ranjangaon Automobiles

    FMCGElectronics

    Ranjangaon MIDC 350–450 22–26

    ShirwalHeavy engineering

    ChemicalsFood processing

    Shirwal, Kesurdi, Khandala,Lonand 150–300 20–25

    Source: Research and REIS, JLL

    Strong/marginal decline Stable Marginal/strong increase

  • 8/16/2019 Manufacturing Destinations of India July2014

    22/2422 Manufacturing Destinations of India: A Real Estate Overview

    India’s Advantages and

    Growth Opportunities

    The Indian manufacturing sector has registered moderate growth inthe past, even in times when the global economy was going through

    a major slowdown. The country places high priority on infrastructure

    development, thus offering high growth opportunities for a wide range

    of manufacturing industries and a wide range of untapped opportunities

    in other sectors. The entry of foreign manufacturing companies with

    technology-based orientation is helping India create a core and

    contemporary manufacturing sector fed by ancillary manufacturers that

    rely on simple technical skills.

    Low Real Estate Costs

    Occupiers seeking to buy land and construct their own facilities can ndnumerous opportunities in India. Land values are generally low in India.

    Manufacturing sector rents are also affordable compared to Sydney,

    Melbourne, Brisbane, Shanghai, Beijing, Guangzhou and Shenzhen.

    Low Labour Costs

    The cost competitiveness of labour is the key driver for the

    manufacturing sector in India. The cost of labour for manufacturing

    sector is cheaper when compared to other countries such as Japan,

    the United States, the United Kingdom, Poland, Korea, Australia,

    Germany, Brazil and Taiwan. This continues to transform the Indian

    manufacturing industry with respect to creating a competitive advantagein manufacturing. In addition, rising manufacturing wages in China

    are likely to bring new entrants to India, and the country expected to

    become a destination for manufacturing.

    Favourable Policy

    India is largely moving toward high-end

    manufacturing, with the government announcing

    multiple reforms and policies

    in the sector. The Indian

    manufacturing industry is

    largely driven by low-cost and skilled labour force, adequate land

    laws and the reasonable cost of capital. India is increasingly adopting

    a global approach to become a strategic player on the international

    platform.

    The Government of India has announced a national manufacturingpolicy with the objective of enhancing the share of manufacturing in

    GDP to 25% within a decade and creating 100 million jobs. It also

    seeks to empower rural youth by imparting necessary skill sets to make

    them employable. Sustainable development is integral to the spirit

    of the policy, and technological value addition in manufacturing has

    received special focus.

    To achieve the desired growth rate for the manufacturing sector, it is

    also necessary to have a high growth rate for the country‘s exports.

    Considering this, the Department of Commerce has come up with a

    strategy on doubling India‘s exports to accelerate the rate of growthof manufacturing exports and reach a level of USD 534 billion by

    2016–2017.

    The government has also taken steps such as easing foreign

    investment restrictions in retail, civil aviation and television

    broadcasting as well as embarking on

    a scal improvement path by lowering

    unproductive subsidies in an effort to

    restore waning investor

    condence.

  • 8/16/2019 Manufacturing Destinations of India July2014

    23/24  Manufacturing Destinations of India: A Real Estate Overview 23

    Srinivasa Reddy NS

     Assistant Vice President, Research and REIS 

    [email protected]+91 80 4031 4833

    Srinivasa Reddy joined Jones Lang LaSalle in March 2008. Based out of Bangalore, he contributes to researchdeliverables on ofce, retail and residential real estate markets in India. He is also responsible for working on bespokeprojects. His expertise lies in the elds of analytical market research, econometric modelling and forecasting.

    Srinivasa holds a master’s degree in economics and has more than eight years of industry research and businessconsulting experience.

    Shreyas Saoji Assistant Manager, Research and [email protected]+91 22 6620 7575

    Shreyas Saoji joined the Jones Lang LaSalle Research team in 2011. Based out of Mumbai, he contributes to bespokeresearch assignments and research covering ofce, retail and residential asset classes. He also contributes to theoperations of the Real Estate Intelligence Service (REIS), the agship quarterly offering by Jones Lang LaSalleResearch.

    Shreyas holds a bachelor’s degree in architecture and a master’s degree in Infrastructure Planning and Managementand has over four years of experience in the eld of real estate research.

    Praveen Pinto  Assistant Vice President, Industrial Transactions [email protected]+91 80 3999 9100

    Praveen Pinto joined Jones Lang LaSalle in April 2008. Based out of Bangalore, Praveen currently leads the industrialtransaction management practice in Bangalore. He has expertise in business location consulting, feasibility studies,market research and industrial transactions for various domestic and international rms looking at setting up industrialoperations in South India.

    Praveen holds a master’s degree in nance and has six years of real estate consulting and transaction experience.

    Chandranath Dey Assistant Vice President, Head – Industrial Consulting [email protected]+91 79 4015 0021

    Chandranath Dey joined JLL in May 2006. Based in Ahmedabad, Chandranath leads the industrial consulting business

    in India. He has expertise in the formulation of business plans, business location advisories and site selection studiesfor some of the largest Fortune 500 companies. He also manages techno-nancial feasibility studies for large-scaleindustrial & logistic parks.

    Authors

     Ashutosh Limaye

    Head, Research and REIS+91 22 3985 1319

     [email protected]

    For research enquiries,please contact:

    Srinivas N 

    Head, Industrial Transactions+91 984 544 5495

    [email protected]

    For business enquiries,please contact:

    Nirav Kothary 

    Head, Industrial Services+91 972 775 8027

    [email protected]

  • 8/16/2019 Manufacturing Destinations of India July2014

    24/24

     

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     About JLL

    JLL (NYSE: JLL) is a professional services and investment management rm offering specialized real estate services to clients seeking increasedvalue by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate ofces andoperates in 75 countries worldwide. On behalf of its clients, the rm provides management and real estate outsourcing services for a propertyportfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and nance transactions in 2013. Its investment managementbusiness, LaSalle Investment Management, has $48.0 billion of real estate assets under management.

    JLL has over 50 years of experience in Asia Pacic, with over 27,500 employees operating in 80 ofces in 15 countries across the region. Therm was named ‘Best Property Consultancy’ in seven Asia Pacic countries at the International Property Awards Asia Pacic 2014, and won nine Asia Pacic awards in the Euromoney Real Estate Awards 2013. www.jll.com/asiapacic  About JLL India

    JLL is India’s premier and largest professional services rm specializing in real estate. With an extensive geographic footprint across 11 cities(Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of over6800, the rm provides investors,developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy,transactions, project and development services, integrated facility management, property and asset management, sustainability, industrial, capitalmarkets, residential, hotels, health care, senior living, education and retail advisory. The rm was named the Best Property Consultancy in Indiaat the International Property Awards Asia Pacic 2014-15. For further information, please visit www.joneslanglasalle.co.in