Presentation

to

METI - JETRO

Business Mission

by

Government of Gujarat New Delhi, 6 February 2006

Gujarat: Economic Profile

Population 50.5 million (5%)

Area 196,000 sq. km. (6%)

NSDP (in 2003-04 at 1993-94 constant prices)

US$ 19.27 billion (6.3%)

Manufacturing sector US$ 5.17 billion

Fixed Capital Investment

US$ 17.9 billion (18.5%)

Industrial Production US$ 39.72 billion (16.2%)

Exports 14% of India

(Source: ASI ) Figures in brackets show % share of India

With 5% of India’s population, Gujarat has 16% of industrial production.

Gujarat had an annual average growth of 9% in the last 3 years and

an average industrial growth of 15%.

Sector 1993-94 2003-04

Net State Domestic Productat 1993-94 Constant Prices

Rs. 425.60Billion

Rs. 886.62Billion

Primary Sector 27% 25%

Secondary Sector 33% 31%

Tertiary Sector 40% 44%

Source: Socio Economic Review – Gujarat State 2004 - 05

Gujarat: Economic Profile

India – Japan Bilateral Trade

India’s Current Imports (US$ 3.1 billion) (2.88%

Share)

India’s Current Exports (US$ 2.0 billion) (2.51%

Share)

Ships, Boats, Floating Structures and Parts thereof

Diamonds and Jewellery

Motor Parts and Accessories

Iron Ore

Project Goods Marine Products

Iron, Steel, Alloys and Parts thereof

Petroleum, Inorganic & Organic Chemicals

Electronic Products Cotton Garments and Textiles

Electric, Mechanical Machinery & Parts thereof

Castor Oil and its derivatives

Photography & Cinematography equipment

Software

Chemicals & Allied Products

Cashew-nuts, Spices, Tea, Coffee, etc

Gujarat: Sectoral Production

(Source: ASI)

59.3

9.3

7.5

7.4

9.52.44.6 Chemicals & Petroleum

Food Processing

Metallurgical Industries

Textile & Garments

Engineering

Mineral Based

Others

Gujarat: Share in India

Refined Petroleum Products 50%Drugs & Pharmaceuticals 45%Chemicals & Allied Products 31%Soda Ash 98%Caustic Soda 35%Polyester Filament Yarn 45%Textiles 15%Sponge Iron (HBI) 35%Fertilizers 30%Cement 9%

Salt 70%

Groundnut 35%Cotton 18%Psyllium Husk 100%Castor Seeds 70%

(45% of world)

Market Capitalization 30%

8 out of every 10 diamonds in the world are processed in Gujarat

MNCs in Gujarat

• General Motors (Halol)

• GE Plastics (Vadodara)

• EI Du Pont (Vadodara)

• ABB (Vadodara)

• Shell (Surat)

• British Gas (Surat)

• Cairn Energy (Surat)

• P&O (Mundra)

• Maersk (Pipavav)

• Wyeth (Atul, Valsad)

• Sanofi Aventis (Ak’lwar)

Automobiles Engineering Plastics Engineering Plastics, Agro Chemicals Electricals Gas Gas Gas Container Port Management Container Port Management Pharmaceuticals Pharmaceuticals

MNCs in Gujarat (cont..)

• Pharmacia (Ankleshwar)

• Perstrop (Vapi)

• Ciba Specialty (Ankleshwar)

• Uber (Vapi)

• Huber (Jhagadia) • Gujarat Guardian (Valia) • BASF (Dahej) • Bayer Cropscience (Ankleshwar) • Cheminova (Panoli) • Lanxess ABS (Vadodara)

Pharmaceuticals Pharmaceuticals Dyes Inks Fine Silica Float Glass Polystyrene Agro Chemicals Agro Chemicals Engineering Plastics

Japanese Companies in Gujarat

Japanese Company

Indian Company

Product/Sector/Area

Kowa Company Ltd.

Adani Port Ltd. Cargo Handling & Port Infrastructure

Chiyoda Corporation

L & T Engineering

Matsushita Electric

Matsushita Lakhanpal Battery India

Dry Cell Battery

C.ITOH & Co. Ltd. Reliance Industries Ltd.

Refining of Crude Oil & Organic Chemicals

Hitachi Life & Home Solutions Inc.

Hitachi Life & Home Solutions India Ltd.

Air Conditioners

Hitachi Displays JCT Electronics Electronics

Japanese Companies in Gujarat

Japanese Company

Indian Company Product/Sector/Area

Ricoh Company Ltd.

Ricoh India Ltd. Facsimile, Transceiver, Photocopiers

Japan Metal Gasket Company

Banco Products Automobile Cylinder Gaskets

Kyoto Machinery Texprint Engineers

Industrial Machinery

Nippon Sanso Corporation

Inox India Ltd. Technology for Cryogenic Tanks

Seiki Kogyosho Power Build Elecon Gears Ltd.

Geared Motors and Reducers

Nichimen India Gelatine and Chemicals

Chemicals

Gujarat Strengths: Infrastructure• Longest coastline in India – 1600 km.• First state to privatize ports, railways and road

transport• 41 Ports - Cargo handled at Kandla, a major port 41.5 MMT (12% of

India) - Cargo handled by minor and intermediate ports is 89.3 MMT

(80% of India)

• Container Handling - P&O at Mundra & Maersk at Pipavav

• Chemical Port Terminal (3 MMT) - only one in India• LNG Terminals at Dahej (5 MMT) & Hazira (5 MMT)• Broad Gauge Rail network across the state• 11 Airports with an International Airport at

Ahmedabad• Pioneering work in Energy, Water, Urban

Development, Industrial Parks• Gujarat Infrastructure Development Act – bringing

transparency in PSP in infrastructure projects

Gujarat Maritime Board (GMB) has profiled investment opportunities in greenfield sites

Draft : 15 mtr.Ship : 77000 DWTDPR:Sandwell-CanadaCargo: Agri & Bulk

Draft : 20 mtr.Ship : 120000 DWTPFR:Rendal Palmer & Triton UKCargo: LNG & Bulk

Draft: 12 mtr.Ship: 60000 DWTPFR: STUP & The Dewager, Netherlands Cargo: Gas & POL

Draft : 13 mtr.Ship : 30000 DWTPFR:Ramboll DenmarkCargo: Bulk-General

Bedi

Simar

MithivirdiVansiBorsi

Investment / BusinessOpportunities in Port Sector• Greenfield Port Projects

– Vansi Borsi– Mithi Virdi– Simar– Bedi

• Ro–Ro Ferry Services including Coastal Traffic Development

• Ship Building & Ship Repairing• Development of Modern Fishing

Harbour• Road & Rail Connectivity Infrastructure• Container Terminal at Dahej• Port Services & Storage Facilities• Inland Water Transport

Energy: Gas Based Economy• 2 LNG Terminals at Dahej & Hazira• Gas Grid Project - 2200 km. long pipeline

with 60-70 MMCD capacity

RoU in Progress

Under Construction

Commissioned

750 Kms. P/L

450 Kms. P/L

SEZs & Industrial Parks

Gujarat is the only state in India having labour flexibility and full relaxation in Labour laws in SEZs

• 11 SEZs

• 2 functional multi product SEZs (Kandla & Surat)

• 9 under development (Multi Product-3, Apparel-2, Gems & Jewellery-1, Electronics-1, Petroleum & Petrochemicals-1, Pharma-1)

• SEZs for Steel & Engineering, Auto Components and Industrial Machinery being processed

• Major amendments in labour legislations in SEZs

• Industrial Parks established in key industries such as Apparel, Gems & Jewelry, Biotechnology, Pharmaceuticals and IT & Electronics

• 83 product clusters - Chemicals, Drugs and Pharmaceuticals, Textile, Ceramics, Foundry, Engineering, Brass Parts, Fish Processing, etc.

Gujarat: Urban Development

• Gujarat is one of the most urbanized states in India, with 40% urban population

• The state had declared 2005 as the Year of Urban Governance

• Ahmedabad declared a Mega City• Under the Sabarmati Riverfront Project in

Ahmedabad, a 9 km riverfront is being developed in the 1st phase

on both sides of the river• MRTS and BRTS are being planned in Ahmedabad• Transformation of Surat as the cleanest city in India• Piped cooking gas system started through PSP• CNG promoted in a big way in urban transportation

system• Modern SWM in place in Ahmedabad and Surat. To

be extended to other cities through local bodies and PSP

Environmental Infrastructure

• 6 Hazardous Solid Waste Disposal sitesVatva, Naroda, Nandesari, Ankleshwar*, Surat*, Vapi*

(* ISO 14001 Certified)

• 6 Treated Effluent Conveyance Pipelines Ahmedabad, Vadodara, Dahej, Ankleshwar, Sachin, Sarigam

• 19 Common Effluent Treatment Plants

• 4 Hazardous Industrial Waste Incinerators Nandesari, Ankleshwar, Surat, Vapi

• Gujarat Cleaner Production Centre

Gujarat: Engineering & Automotive

Source: Government of Gujarat

Sound Base Largest producer of sponge iron and SAW & ERW pipes Important center for the manufacture of textile machinery,

chemical machinery, pollution control equipment, printing machinery, compressors, bearings, TV tubes and clocks

Important manufacturer of power generation plants, switchgears, transformers and transmission line towers

Largest ship breaking yard in the country (Alang) 27 Clusters – castings & machine tools, brass parts, oil

engines & electric motors, submersible pumps, industrial valves & bearings, auto-ancillaries

Anchor Industries Essar Steel: Sponge Iron (2.4 MT), expanding to 6.4 MT Hindalco: Copper Rods (250,000 MT), doubling capacity Elecon Engineering: Largest manufacturer of industrial gears Gujarat Apollo: Largest producer of road-making equipment Kalpataru Power Transmissions: Largest capacity plant in the

world Other Key Investors: GM, L&T, ABB, Videocon & Jyoti Engineering

Gujarat: Chemicals & Petrochemicals

Source: Government of Gujarat

Sound Base The largest contributor to Chemical and Petrochemical Industry of

India Well developed infrastructure for manufacturing, storing,

transporting and effluent treatment Home to some of the largest chemical estates in Asia (Vapi,

Ankleshwar) 4 Petrochemical Complexes, 2 large Petroleum Refineries and

6 large Chemical-Fertilizer Complexes Special Economic Zone for Petroleum and Petrochemical Sector Over 1360 large and medium scale Chemical & Petrochemical

projects with investment exceeding US$12.3 billion

Anchor Industries GSFC: Diversified Fertilizer and Chemical product portfolio. About

US$ 650 million of investment. India’s first joint sector industrial complex

Reliance: State of the art Petroleum Refinery at Jamnagar with capacity of 27 million tonnes per annum (540,000 barrels per day)

Torrent: Dominant player in the therapeutic areas of Cardiovascular (CV) and Central Nervous System (CNS)

Other Key Investors: BASF, Bayer, Rallis India, Alembic, IPCL, Novartis, Zydus, Ranbaxy, Cadila, IFFCO, etc.

Gujarat: Textiles and Apparel

Source: Government of Gujarat

Sound Base Largest producer of cotton in the country and a major source for

man-made fabric Modern process houses with environment friendly technology Largest supplier of Denim in the world. Textile industry in Gujarat

accounts for 30% of woven fabrics in organized sector in country. Surat in South Gujarat, contributes 40% of Art Silk fabric produced

in India Apparel Parks at Surat and Ahmedabad declared as Special

Economic Zones with flexible labour laws Gujarat contributes about 12% of the total textile exports of the

country Over 1000 medium and large scale textile projects with investment

exceeding US$ 2.82 billion have been commissioned and about 300 projects are under implementation

Anchor Industries Arvind: Shirting, Knits, Khakhis and ready to wear garments. A

leading manufacturer of Denim in the world Welspun: Home Textiles & Made ups. Amongst the top 3 Terry

Towel producers in the world Other Key Investors: Reliance, Ashima, Dinesh, Raymonds, Aarvee,

etc.

Gujarat: Strengths in IT-ITES Location Economical Real Estate: Monthly rentals - US$ 36 / 100 sq. ft.

in Ahmedabad (US$ 78 in Pune, US$ 127 in Delhi, US$ 193 in Mumbai)

Manpower Premier Educational and Research facilities Computer Education is compulsory in schools Manpower rates - US$ 3.70 / shift in Ahmedabad

(US$ 5.00 in Pune, US$ 9.00 in New Delhi, US$ 9.20 in Mumbai) Lowest attrition rate in the BPO sector among all other states

Capability Ahmedabad has developed sound capabilities in Web

Development Services, call/contact centers & BPO operations – 8 large companies.

Infrastructure Telecom: Highest number of phone connections - 12 per 100

persons; highest number of ISPs in the country India’s longest OFC network First Software Technology Park in India. 3 IT Parks – Infocity in

Gandhinagar, GNFC Tower & Astron Tech Park in Ahmedabad Source: Nasscom, Knight Frank, Cushman & Wakefield, Colliers Jardine, Cochinnet.com, A.T. Kearney analysis

Strengths in IT-ITES (cont….) Government Support Single Window facilitation mechanism Incentives in real estate, power and telecom facilities Science &Technology Department for implementation of

IT Policy with Gujarat Informatics Ltd. as corporate arm Creation of Information Corridor between state capital and

districts 3% of budget committed to IT related activities Private sector participation encouraged in

• Creation of Information Corridor • Setting up Information Kiosks • Provision of Database oriented services • Setting up of Information Infrastructure

IT Plan submitted by National Task Force has targeted one PC per 50 persons by 2008. Gujarat aims to achieve this by 2006

Venture Capital Fund for IT services, IT software and IT products

Source: Government of Gujarat

Gujarat: Other USPs

• Gujarat is the numero uno state in India in industrialization

• Least mandays lost due to industrial unrest – 0.94 % of the country while contributing 16.2% of India’s industrial production

• Major state owned enterprises turned around during the last 4 years

• 302 investment proposals worth US$ 38.2 billion received during the Global Investors’ Summits in 2003 & 2005.

• Kutch, a backward pastoral district – ravaged by the worst earthquake of the century just 5 years ago, is now on way to unprecedented economic prosperity

Gujarat is committed to maintain its double digit

economic growth

Japan – Gujarat: Potential

Scope for Japanese Companies in Gujarat• Infrastructure, including SEZs and Real Estate

Development• Transport Infrastructure Project such as Mass Rapid

Transit Systems for rail and bus• Ports, including Port & Cargo Management, Integrated

Solutions in Marine Logistics• IT, ICT, ITES, High-end Electronics

– Japanese Companies can set up IT and Electronics Industrial Parks

• Engineering – Jointly develop an auto-ancillary Industrial Park for export of auto components

• Chemical and Allied Industries – Technology Transfer• Tourism – Theme Parks, Tourist Trails, Special

Entertainment Zones. Gujarat is celebrating 2006 as Tourism Year

• Healthcare – Gujarat accounts for 31% of the country’s Medical Tourism

• Biotechnology, Nano-science, Electronics, Communication Technology, etc.

Thank you

www.ic.gujarat.gov.inwww.indextb.com

indextb@indextb.com

+91(79) 23256009 / 10 / 11

Designed by NetLink India