MahaConnectThe Business Newsletter53rd Edition - September 2014

From the Government ofMaharashtra- MIDC

Government ofMaharashtra

Maharashtra IndustrialDevelopment Corporation

MagneticMaharashtra

Attractions Unlimited

From the EditorDear Reader,

Maharashtra has set yet another precedent by attracting investments of INR 11,510 crore from some of the leaders in the Auto manufacturingsector who aim to expand their manufacturing capacities in the state. Such huge expansion plans of industry leaders clearly reflects the immensesupport from the state government to the manufacturing companies present in the state.

The events section of this edition details the MoU signing ceremony that entailed the signing of agreements between some of the largest autocompanies and the Government of Maharashtra. Under the agreements signed, the auto companies will invest around INR 11,510 crores in thestate and create employment for over 6000 people.

Additionally, this edition of MahaConnect covers the district profile of Kolhapur, a district which enjoys the presence of many large companiesin the field of auto components, textiles, food processing and engineering equipment. The newsletter also covers the industrial estate profile ofLote-Parshuram industrial area which has emerged as one of the largest chemical and pharma hubs in Maharashtra.

The newsletter will also throw light on the success story of the technology major – Honeywell Automation India Ltd, and how the company hasgrown in the state of Maharashtra leading towards the establishment of its second plant in the state.

We sincerely hope that this newsletter proves to be informative. As always, we look forward to your valuable comments and feedback whichwill help us in making MahaConnect more enriching for our readers. Please write to us at mahaconnect@midcindia.org. We also invite you tovisit our website www.midcindia.org for further details and opportunities the state provides in the realm of setting up industries in the State.

Regards,Bhushan Gagrani (IAS)Chief Executive OfficerMaharashtra Industrial Development Corporation

2

CO

NT

ENT

S Kolhapur, the southern most district of Maharashtra enjoys presence of many large companies in the fieldsof Auto components, textile, food processing and engineering equipment. The district hosts many industrymajors such as Kirloskar Oil Engines Ltd, Indo Count Inds. Ltd, Ghatge Patil Inds. Ltd, amongst many others.To learn more about Kolhapur, read the District Profile section of this edition of MahaConnect.

Located in the Ratnagiri district, Lote-Parshuram is the upcoming pharma hub of Maharashtra. Strategiclocation, excellent connectivity and presence of a large industrial base has driven the site’s rapid industrialdevelopment. To learn more about the this industrial area, read the Industrial Estate Profile section ofthis edition of MahaConnect.

On 28th August 2014, some of the leading car manufacturers such as Mahindra & Mahindra, Tata Motors,Volkswagen and Bajaj Auto signed agreements with the Government of Maharashtra to invest a total ofINR11,510 crore to expand their manufacturing capacity in Maharashtra. To read more about the MoUsigning event, refer to the Events section.

Honeywell is a Fortune 100 company that invents and manufactures technologies to address toughchallenges linked to global macro-trends such as safety, security, and energy. The company’s productionfacility at Pune (Maharashtra) is among the few certified by several government and defence establishments.In August 2014, Honeywell announced the launch of its second manufacturing facility in Pune. To read aboutthe company's growth story in the state of Maharashtra, refer to the Success Story section of this edition.

District Profile

IndustrialEstate Profile

Events(1)

Events(11)

Success Story

On 22nd August 2014, a high power Chinese delegation visited India to discuss about the proposeddedicated Chinese industrial park in the state of Maharashtra. The industrial park will focus on the automanufacturing sector and will witness large investments from Chinese auto majors such as Beiqi FotonMotor Company. Read the Events section to learn more about this industrial park.

1

10

13

14

15

3

DISTRICT PROFILESOCIO ECONOMIC

INDICATORS

Population (in ‘000s) 3,876

No. of households(‘000s) 840

Literacy rate (%) 81.51%

GDP(2012 -13 in INR Crore) 45,576

Per capita income(2011- 12 in INR) 1,01,622

INFRASTRUCTUREINDICATORS

Airports

PuneInternationalAirport – 245

km

Sea Port/Nearest

JNPT – 380Km

Roads 7981 Km

Railways 35.67 Km

DISTRICT - KOLHAPUR

KOLHAPUR DISTRICT

Maharashtra

§ Kolhapur, the southernmost district of Maharashtra enjoys presence of many large companies in thefields of Auto components, textile, food processing and engineering equipment.

§ The district has presence of industry majors such as Kirloskar Oil Engines Ltd, Chemplast Sanmar Ltd,Indo Count Inds. Ltd, Ghatge Patil Inds. Ltd, amongst many other majors.

§ Stretching over 7,685 sq. km, Kolhapur shares its borders with districts rich in agricultural produce suchas Ratnagiri, Sangli, Solapur and Sindhudurg.

§ Kolhapur’s excellent connectivity and proximityto other district’s of industrial importance suchas Pune, Satara and Raigad gives it a majorlocational advantage.

§ The district’s GDP grew by 11.46 % in 2012-13.The district is known for being a centre of art,education, industry, sports, food, headwear,footwear, jewellery and religion

§ The headquarters of the district – Kolhapur city,is situated on the banks of river Panchganga.Warana, Dudhaganga, Vedganga, Bhogavati,Hiranyakeshi and Ghataprabha are the othermain rivers which flow through the district.

4

DISTRICT PROFILE

KOLHAPUR - CONNECTIVITY

§ NH 204 passes through Kolhapur. The total length of thehighway is 974 km and the highway connects Kolhapur withSangli, Solapur, Latur, Nanded, Yavatmal, Wardha andNagpur.

§ Kolhapur is connected to Pune through the NationalHighway 4, which links the 10 most populous Indian cities inIndia including Mumbai, Pune, Bangalore, and Chennai.

RO

AD

RA

IL

§ The station of city of Kolhapur is the end point of Miraj -Kolhapur railway line.

§ This station connects Kolhapur to major Indian cities likeMumbai, Pune, Hyderabad, Bengaluru, Solapur, Nagpur,Tirupati, Ahmedabad, Delhi, Dhanbad through express trains.

AIR

PO

RT

§ The Pune International Airport is only 245 km via NationalHighway 4.

§ In September 2014, it was reported that Union civil aviationministry has given a green signal to the existing Kolhapurairport for commencement of operations and that thecommercial airline services will start very soon at theairport.

§ Jawaharlal Nehru Port and Mumbai Port are 375 km and 390km respectively from Kolhapur and are connected via theNational Highway 4

§ Jawaharlal Nehru Port (JNPT) & Mumbai Port (MBPT) aretwo of the largest ports in India and are located inMaharashtra. Together they account for 22.45% of the totaltraffic at all major ports in India.

5

DISTRICT PROFILE

INDUSTRY MAJORS IN KOLHAPUR

§ The company manufactures a variety of high-quality dieselengines that powers more than 85 Industrial Engineapplications across seven segments.

§ The company has an advanced manufacturing unit forIndustrial Engines at Kagal (Kolhapur).

§ The manufacturing plants are well-equipped with the mostadvanced and high-tech machinery, having state-of-the-art,cutting-edge technology for machining of all criticalcomponents.

§ KOEL is one of the largest Industrial Engine manufacturersin India and produces over 40,000 engines annually.

§ KOEL is the only engine manufacturer with FM approvaland UL listing in Asia.

§ GPI is one of the largest companies in the engineeringsector in India. The company has manufacturing operationsthat are located in Kolhapur.

§ After an establishment of a small foundry in 1962, GPI hasgradually grown to a sophisticated foundry with KunkelWagner High Pressure Moulding Line with Automatic CoreShooting Unit, Automatic Press Pour Machines, S.G. IronConvertor installed in collaboration with George Fisherand equipment such as Spectrometer etc.

§ GPIs foundry division has been accredited with T.S.Certification. The company has been accredited with API6A and 6D Certificates by American Petroleum Institute.

§ GPI also developed indigenous solutions as importsubstitutes for Bharat Earth Movers Ltd. (BEML)

Kirloaskar Oil Engines Ghatge Patil Industries

6

DISTRICT PROFILE

KOLHAPUR FOUNDRY CLUSTER

§ Kolhapur is a leading foundry cluster in India, renowned formanufacturing quality castings. The district houses animportant foundry cluster for automotive castings.

§ Growing industrialization in the region led to increase indemand for oil engines and agricultural implements, whichinturn led to the emergence of foundry cluster in Kolhapur.

§ The foundry cluster is mainly spread over Kolhapur, Sangli,Ichalkaranji and Hatkanangale areas.

§ A significant percentage of foundry units at Kolhapurexport castings to several countries and numerousindustries.

§ Casting units catering to Automotive/Oil Engines andPumps/Valves constitute majority of the Foundry units inKolhapur.

Strengths of the cluster

§ The cluster is renowned for producing high quality castings§ Foundries are adopting technologically advanced production

methods§ Abundant availability of alloys§ Regular supply of electricity§ Strong industrial base§ Proximity to locations of industrial importance such as Mumbai

and Pune

Major industry associations and support bodiesin Kolhapur district

§ Institute of Indian Foundrymen (IIF), Kolhapur§ Kolhapur Engineering Association (KEA)§ Gokul Shirgaon Manufacturers Association (GOSHMA)§ Shiroli Manufacturers Association of Kolhapur (SMAK)§ Manufacturers Association of Kagal§ Ichalkaranji Engineering Association

DISTRICT PROFILE

INVESTMENT OPPORTUNITIES IN KOLHAPUR

Food Processing

Auto Component

§ Kolhapur is predominant area in cultivation of Paddy, Sugarcane,Banana, and Vegetables. The region is famous for Dairy, Poultryfarms and Co-operative sugar factories.

§ Proximity to agri-rich districts – Sangli, Solapur, Ratnagiri andSindhudurg makes it a preferable location for agri relatedindustries.

§ Kolhapur has one of the highest productivity in Maharashtra interms of soybean production.

§ The district is one of the major raisin producing states inMaharashtra

§ Major Companies - Dalmia Bharat Sugar & Inds. Ltd, LakshmiSugar Mills Co. Ltd, Shree Panchaganga S S K Ltd., AmrutIndustries Ltd.

§ Kolhapur’s excellent connectivity to Pune, one of the biggestAuto hubs in India has facilitated Auto component companies toset up base in the district.

§ The districts connectivity to water ports have helped autocomponent companies to easily export their products toEuropean and Middle East market.

§ Easy availability of raw materials and a large existing vendor baseare also one of the major factors that has attracted autocomponent manufacturing companies in the district.

§ Major Companies - Kirloskar Oil Engines Ltd, Ghatge Patil Inds.Ltd, Shriram Foundry Ltd, Menon Pistons Ltd.

8

DISTRICT PROFILE

MIDC Area Total Land(Hectares)

Kolhapur (Shiroli) 254.19

Gokul-Shirgaon 219.06

Halkarni 192.53

Ajara (Mini) 6.01

Kagal Hatkanangale (GC and FiveStar) 1085.01

Gadhinglaj (GC) 132.52

The district of Kolhapur has 6 industrial areas under MIDC. The totalland coverage of these industrial areas is 1889 hectares.

For detailed information on each of these industrial areas. Including availability of land please refer to the following link—http://www.midcindia.org/Pages/IndustrialPage.aspx

For further information, please refer to the following links1. For power tariffs applicable —http://www.midcindia.org/Pages/PowerTariff.aspx?IndusArea=All&Region=All2. For Land Rates —http://www.midcindia.org/Pages/FilterLandRates.aspx?IndusArea=All&Region=All3. For Water Rates —http://www.midcindia.org/Pages/FilterWaterTariff.aspx?IndusArea=All&Region=All

For any further information on the services provided by MIDC and other important state policies including the NewIndustrial Policy 2013, please visit our website - www.midcindia.org

9

INDUSTRIAL ESTATE PROFILE

LOTE PARSHURAM –THE PHARMA HUB§ Lote-Parshuram is the upcoming pharma hub of Maharashtra. Located in the Ratnagiri district, Lote-Parshuram industrial area is located on the Mumbai-Goa

National Highway 17, through which it is connected to many major ports in western India.

§ Lote-Parshuram industrial area is well accessed by road and the Konkan railway. Moreover the Industrial area enjoys a locational advantage as it is located inproximity to ports such as Jaigarh Port, Jawaharlal Nehru Port and Mumbai Port; and also in proximity of many districts of industrial importance such asPune, Raigad, Satara, Sangli and Kolhapur.

RE

GIO

NA

LO

FFIC

EIN

FOR

MA

TIO

N

Officers in Charge—

Regional Officer - Ratnagiri Division

Area Manager - Ratnagiri Division

Excecutive Engineer - RatnagiriDivision

Address - Mirjole Industrial Area,Near J.K.Files, Ratnagiri - 415 639.

Tel- +91 - 02352 – 228801 / 228950

Fax- +91-2352-228811

Email - roratnagiri@midcindia.orgRatnagiri District

Lote PashuramIndustrial Area

Maharashtra

The Industrial area islocated on both sides ofMumbai-Goa NationalHighway 17, which is amajor National Highway inthe country runs north tosouth along the westerncoast of India, parallel towestern Ghats.

10

INDUSTRIAL ESTATE PROFILE

ADVANTAGE LOTE-PARSHURAM§ MIDC has set up the Lote-Parshuram CETP (Common Effluent Treatment Plant) to support Pharma Industries in the area.

§ The current capacity of the CETP is 4.5 MLD.

§ In 2013, the upgradation of CETP was approved by the Industries Department - Government of Maharashtra and the capacityexpansion of the CETP is now under progress.

§ In 1993 Lote-Parshuram Industries Association (LPIA) was established.

§ The association provides its member industries with a forum to address any problems faced during the course of their business.

§ Moreover the association provides access to large and diverse set of industries in the region.

§ The JSW Jaigarh Port is only 70 km from the industrial area. The port is a 24/7 deep water port in Ratnagiri, was inaugurated in 2009.

§ The port has multi-cargo handling facilities and mechanized material handling system for quick turnarounds.

§ Lote-Parshuram industrial area is well connected via the large rail network of Konkanrailway. In order to support industrial development, the Konkan railway came up with aninnovative Roll-on Roll-off (RO-RO) service whereby loaded goods trucks are carried onrailway flat wagons on Konkan Railway route. This service is unique only to Konkanrailway and has completed 16 years of its operation. In 2013-14, revenue from the RO-RO service increased by 34% over the previous year

Roll-on Roll-off service by Konkan Railways 11

INDUSTRIAL ESTATE PROFILE

Road

Rail

Air

Port

SIT

EC

ON

NE

CT

IVIT

Y

§ The Industrial area is located on both sides of Mumbai-Goa National Highway 17,§ NH 17 connects the industrial area to many locations of industrial importance in the state of Maharashtra, Goa, Karnataka,

and Kerala.§ The The area is easily accessible to Pune, Satara, and Kolhapur via the Kumbharli Ghat road.

§ The Chiplun railway station which is served by the Konkan railways, is only 11 km from the site.§ Ratnagiri station, which is less than 100 km from the site, is one of the most important stations on the Konkan Railway.

§ Airstrip situated near Ratnagiri city and Kolhapur airport is only 140 km from the Ratnagiri district.§ The Pune International Airport is only 245 km from the site and is well connected via National Highway 66

§ JSW Jaigarh Port is only 71 km from the site and is connected via the State Highway 78.§ The industrial area is connected to Jawaharlal Nehru Port Trust (JNPT) and Mumbai Port (MBPT) via National Highway 66.

The two ports together account for 22.45% of the total traffic at all major ports in India.

12

EVENTS - MOU SIGNING CEREMONY

MAHARASHTRA ON COURSE TO BECOME INTERNATIONAL AUTO-HUB

§ On 28th August 2014, some of the leading car manufacturers such as Mahindra &Mahindra, Tata Motors, Volkswagen and Bajaj Auto signed agreements with theGovernment of Maharashtra to invest a total of INR11,501 crore to expand theirmanufacturing capacity in Maharashtra.

§ These pacts were signed by Shri Apurva Chandra, Principal Secretary (Industries) onbehalf of the state government in the presence of Chief Minister – Shri Prithviraj Chavanalong with Deputy Chief Minister - Shri Ajit Pawar, Industry minister - Shri Narayan Rane,Minister of State for Industries - Shri Sachin Ahir and Chief Secretary - Shri SwadheenKshatriya.

§ Under the agreements, Tata Motors and Mahindra will invest INR 4,000 crore each, whileBajaj and Volkswagen will invest in INR 2,000 crore and INR 1510 crore respectively.

§ Of the four projects, three will be in Pune district and one in Waluj in Aurangabad. Totalinvestment of all four projects together will result in employment opportunities for 6,270people.

Auto companies to invest INR 11,510 crore inMaharashtra

Principal Secretary (Industries) - Shri Apurva Chandra with Mahindra& Mahindra, Executive Director – Shri Pawan Goenka at the MoU

signing ceremony

From Left: Principal Secretary (Industries) - Shri Apurva Chandra, StateIndustries Minister - Shri Narayan Rane, Chief Minister of Maharashtra

– Shri Prithviraj Chavan, Tata Motors Executive Director forcommercial vehicles - Shri Ravi Pishrody; at the MoU signing ceremony

13

EVENTS – CHINESE DELEGATION IN MUMBAI

SETTING UP OF CHIESNE INDUSTRIAL PARK IN MAHARASHTRA

The MIDC delegation (Left) and the Chinese delegation (Right): Indiscussion on the proposed dedicated Chinese Industrial Park in

Maharashtra.

Shri Uddhav Ghughe – General Manager - Marketing, MIDC and Mr.Liu Youfa - Consul General, Consulate General of the People's

Republic of China at the meeting

§ On 22nd August 2014, a high power Chinese delegation led by the ConsulGeneral Mr. Liu Youfa from the Consulate General of the People's Republic ofChina met with the MIDC (Maharashtra Industrial Development Corporation)delegation led by Shri Uddhav Ghuge, General Manager – Marketing MIDC; todiscuss about the proposed dedicated Chinese Industrial Park in the state ofMaharashtra.

§ The Chinese delegation included Mr. Liu Guoyu – Commercial Counselor andMr. Chong Li – Vice Consul from the Consulate General of the People's Republicof China, Mr. Edward Xu – Chief Financial Officer, India Operations, Foton,among other dignitaries.

§ They expressed their intent to set up an Auto Manufacturing industrial park andwould prefer a location near Pune to set up the industrial park. The delegationadded that they aim to bring many major OEMs from China and also want to setup R&D centers in the industrial park.

§ Beiqi Foton Motors, a Chinese automobile major expressed its willingness toparticipate as an anchor industry in the development of the industrial park.

§ The meeting successfully concluded with MIDC agreeing to provide full supportfor the development of the Chinese Industrial Park and both parties agreeing tosoon finalize the location of the industrial park.

14

SUCCESS STORY

HONEYWELL INDIA§ Honeywell has a significant presence in Maharashtra with its

automation and turbocharger manufacturing facilities based in Pune,built with an investment of around INR 500 crore. This facility providesfull time employment to nearly 3,000 people in the state, besidesindirect employment and livelihood generation through ancillaryindustries.

§ The 85,000 sq. ft. production facility of Honeywell Automation IndiaLimited (HAIL) at Pune is among the few certified not just byHoneywell but also by several government and defence establishments.HAIL’s facility is also a dedicated export facility under ‘ElectronicHardware Technology Park’ (EHTP).

§ In August 2014, Honeywell announced the launch of its newmanufacturing facility in Pune, Maharashtra. This 75,000 sq. ft. state-of-the-art facility for HAIL will significantly expand Honeywell’smanufacturing capabilities in the country.

§ The new facility will integrate manufacturing, factory testing, qualitycontrol and advanced manufacturing engineering for Honeywell’sautomation business in India.

Consolidating manufacturing in onelocation will create efficiencies and improve

productivity for us

“”

Vikas Chadha, Managing Director, HAIL on Honeywell'ssecond facility in Pune (Maharashtra)

Thomas A. Szlosek, Senior Vice President and CFO of Honeywell Internationalinaugurating Honeywell’s seventh manufacturing facility in Pune

15

Feedback

DisclaimerMaharashtra Industrial Development Corporation (“MIDC”) has engaged Ernst & Young LLP. (“EY") to prepare this document and the same has been prepared by EY in consultation with MIDC. This document is for information purposes only. While due care has beentaken during the compilation of this document to ensure that the information is accurate to the best of EY's knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. EY does not assume any liability orresponsibility to any person for the outcome of decisions taken by such person as a result of any reliance placed on this presentation. EY shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to anyreliance placed or guidance taken from any portion of this presentation.© 2014All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by MIDC and the Authors. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium byelectronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of MIDC

Maharashtra Industrial Development Corporation Knowledge Partner

FE

ED

BA

CK

Dear Mr Gagrani,

Extremely good initiative by MIDC.The News Letter not only provides updates on MIDC’s existing and new industrialclusters and the activities but also highlights Maharashtra’s contribution toindustrial and economic development of the nation.Overall a very informative publication.

Best regardsPankaj GuptaChief General ManagerExternal Affairs & CSRVolkswagen Group India

For Feedback, write to us at:E-mail: feedback@midcindia.orgContact us:Maharashtra Industrial Development CorporationUdyog Sarathi Mahakali Caves Road,Andheri(E),Mumbai-400 093.Phone: 91-022-26870052 / 54 / 73,Fax: 91-022-26871587,E-mail: mahaconnect@midcindia.org

16