MahaConnect The Business Newsletter 54 th Edition - October 2014

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1 Government of Maharashtra Maharashtra Industrial Development Corporation MahaConnect The Business Newsletter 54 th Edition - October 2014 Magnetic Maharashtra Attractions Unlimited From the Government of Maharashtra- MIDC

2 Dear Reader, The state s efforts towards developing more efficient business regulations and its consistent support to industries have led Maharashtra to be ranked as one of the leading states in India in terms completion of investment projects for the second consecutive quarter. The key updates section of this edition focusses on Maharashtra s achievements in this area. From the Editor The events section of this edition throws light on MIDC s support to two of the industry s major events namely, the 4th Global Economic Summit 2014 and the 8th Asian Textile Conference, which were recently convened. MIDC was invited at both events to share the key insights and business intelligence with industry leaders present at the events. This edition of MahaConnect also covers the district profile of Nashik, which apart from being one of the most successful wine manufacturing hubs in India, hosts several industry majors across sectors. The newsletter includes the industrial estate profile of Chakan, and highlights the factors which make Chakan one of the most developed and sought-after industrial areas. This edition also brings to light the success stories of the Tata Motors Defence Solutions and how the company has grown in the state of Maharashtra. We sincerely hope that this newsletter proves to be informative. As always, we look forward to your valuable comments and feedback which will help us in making MahaConnect more enriching for our readers. Please write to us at mahaconnect@midcindia.org. We also invite you to visit our website for further details and opportunities the state provides in the realm of setting up industries in the State. Bhushan Gagrani (IAS) Chief Executive Officer Maharashtra Industrial Development Corporation 2

3 Contents District Profile Industrial Estate Profile Success Story Events (1) Events (1I) Key Updates Pg. 17 Pg. 16 Pg. 15 Pg. 14 Pg. 11 Pg. 4 Apart from encompassing the wine capital of India, Nashik district houses several industrial majors across many industrial sectors such as Bosch, Dabur, Glaxosmithkline, Jindal Group, Atlas Copco, and many others. Read the district profile section to learn more about the factors that have attracted these industry majors to invest in Nashik. Located in Pune, one of the most industrially developed districts in India, the Chakan Industrial area is itself one of the most sought-after industrial areas in Maharashtra. The Industrial area is one of the biggest Auto clusters in the nation. Read the Industrial Profile section to know more about Chakan and its huge industrial presence. Tata s plant at Pune produces specialized military vehicles and is spread over two parts one at Pimpri and the other at Chinchwad, which together cover an area over 930 acres. Read the Success Story section to know more about how the company has witnessed immense growth in the state of Maharashtra. The 4th Global Economic Summit 2014 was held on September 11-13, 2014 in Mumbai The event saw distinguished business leaders, bankers, academicians and technocrats share key business insights and market trends. At the event, Shri Bhushan Gagrani (IAS), CEO, MIDC shared Maharashtra s strengths on the industrial front. Read this section to know more about the event. The 8th Asian Textile Conference ATEXCON was held on September 22-23, 2014 in Mumbai. The event brought together the lead players of Asian textile industry. Dr. P. Anbalagan (IAS), Joint CEO, MIDC was invited to give a presentation on the scenario of the textile industry in Maharashtra. Read the Events section to know more about this event. Maharashtra ranked amongst the top states in India in terms of completion of investment projects for the second consecutive quarter. Read the Key Updates section to know about the state s achievements on the industrial front. The section also contains the details to the recent invitation by the Ministry of Environment & Forests (Government of India) for comments / suggestions for its draft notification concerning amendments to environmental norms

4 DISTRICT PROFILE - NASHIK SOCIO ECONOMIC INDICATORS Population (in 000s) 6107 No. of households( 000s) 1223 Literacy rate (%) 82.3 GDP ( in INR Crore) Per capita income ( in INR) 64,041 97,896 INFRASTRUCTURE INDICATORS Airports Sea Port/ Nearest Mumbai International Airport 166 Km JNPT Km Roads Railways 287 Nashik has the advantage of proximity to large industrial clusters situated in districts such as Aurangabad, Thane, Ahmadnagar, Pune and Mumbai. Nashik s geographical location and its developed industrial infrastructure has attracted many industry majors across varied industrial sectors such as Adani Wilmar Ltd, Bosch Ltd, Jindal Saw Ltd, Dabur India Ltd, Glaxosmithkline Pharmaceuticals Ltd, among others. Nashik district spreads over a vast area of 15,530 square kilometres. It is bound by Dhule district to the north, Jalgaon district to the east, Aurangabad district to the southeast, Ahmednagar district to the south, Thane district to the southwest, Valsad and Navsari districts of Gujarat to the west, and the Dangs district to the northwest. Godavari and Gima are the important rivers of the district. The Godavari river is drained by many distributaries out of which the main distributaries - Darna and Kadva have canals that irrigate land around their banks. Sand, Murum, Stone and clay are available in abundance in the district, which can be suitably used for construction projects. The district s Gross Domestic Product grew by 18.93% in and its per capita income grew by 17.34% over the same period. NASHIK DISTRICT Maharashtra 4

5 DISTRICT PROFILE - NASHIK ROAD National Highway 3, passes through Nashik and connects the district to several places of industrial importance in the states of Maharashtra, Uttar Pradesh, Rajasthan, and Madhya Pradesh in India. Mumbai Nashik Expressway is a 6 lane150 Km long expressway connecting Mumbai to Nashik. At the time when this project was awarded, it was the largest BOT (Build operate transfer) road project in India. RAIL Nashik Road Railway Station is the major railway station in the Nashik city. It is an important railway station for the Central Railways and is well connected to several major cities in India. Other important railway stations in the district are Manmad railway station and Igatpuri railway station. AIR The Chhatrapati Shivaji International Airport in Mumbai is 166 Km from Nashik and is connected via the National Highway 3. A new terminal at the Ozar Airport, which is 15 kilometres northeast of the city of Nashik was inaugurated on 3 March, Commercial operations are set to start soon at the airport. PORT Jawaharlal Nehru Port (JNPT) and Mumbai Port (MBPT) are 190 km and 181 km respectively from Nashik and are connected via the National Highway 3. Jawaharlal Nehru Port (JNPT) & Mumbai Port (MBPT) are two of the largest ports in India and are located in Maharashtra. Together they account for 22.45% of the total traffic at all major ports in India. 5

6 DISTRICT PROFILE - NASHIK INDUSTRY MAJORS IN NASHIK Bosch Jindal Saw Ltd. Bosch Limited in Nashik manufacture nozzles and injectors for classical as well as Euro series. Nashik Plant is one of the important establishments of Bosch in India since last 40 years. The plant is spread on 400,000 sq m, having four manufacturing hangars. In addition to TS 16949, plant is also certified for ISO 14000, the internationally acknowledged certificate for Environment protection. With the constant efforts for excellence in Quality and delivery commitments, the plant received good acceptance by customers in Europe, USA and South East Asia. At present, exports constitutes about 25% of the plant output. The Sinnar (Nashik) plant of Jindal Steel Ltd houses its Seamless Tubes Division. The plant has an annual installed capacity of 220,000 M Tons for Carbon & Alloy Steel Pipes and is equipped with modern manufacturing machineries and latest testing facilities including Fusion Bonded Epoxy (FBE) and 3 layer Poly Ethylene (LPE) Coating Line. The company has recently commissioned a state of the art PQF Mill and have also added a new Quench and Temper Furnace, Up setter, Hydro tester, MAC EMI & UT and PMC Threading machines. With the addition of these machines, this plant will be technologically at par with the best seamless mills internationally. 6

7 DISTRICT PROFILE - NASHIK INVESTMENT OPPORTUNITIES IN NASHIK Food Processing Due to its locations and topography, the district enjoys climate suitable for agricultural operations. The soil from the river banks, especially of Girna and Mosan is black, fertile and suitable for the cultivation of cotton and sugarcane. The soil in the middle part of the district starting from the foot of the hills to the low lands on the eastern side is suited for the cultivation of cereals, pulses and vegetables. The district is one of the major Grapes producing states in India and is known for Wine manufacturing. MIDC has set up two Wine Parks in Nashik Vinchur and Additional Vinchur. Nashik is also one of the major district in the state of Maharashtra, producing Guava and Pomegranate. Additionally, Nashik is one of the major Onion producing districts in the state. The district hosts many companies that are engaged in the horticulture business. Major Companies - Adani Wilmar Ltd, A D F Foods Ltd, Ravalgaon Sugar Farm Ltd, Freshtrop Fruits Ltd, Empire Spices & Foods Ltd, Vadilal Dairy International Ltd, Fortune Foods Ltd, Finns Frozen Foods (India) Ltd, Citric India Ltd, Sula Vineyards, etc. 7

8 DISTRICT PROFILE - NASHIK INVESTMENT OPPORTUNITIES IN NASHIK Engineering Nashik s proximity to districts with major engineering clusters such as Aurangabad and Ahmednagar has facilitated easy access to a large supplier / vendor base. The engineering sector is a capital intensive sector. Since all the Industrial estates in the district are classified as B, C, D and D+ regions, industries in Nashik district enjoy relatively higher fiscal incentives on fixed capital investment, as per the state s industrial policy Relatively lower land rates in Nashik also act as a major advantage for the capital intensive companies in the engineering sector. Since land costs constitute a major part of total capital investment, thus the lower land prices help companies improve their return on investments. Power utilities are currently the biggest contributor to growth of the Engineering sector. The presence of large companies in the power sector such as Tata Power, Reliance Energy, Ratnagiri Gas and Power Pvt. Ltd, Adani Power, and many other state owned power companies make Maharashtra a big consumer of Power generation & distribution equipment. Major Companies - Atlas Copco (India) Ltd, Everest Industries Ltd, Kirloskar Pneumatic Co. Ltd, Sahyadri Industries Ltd, Caprihans India Ltd, Artson Engineering Ltd. 8

9 DISTRICT PROFILE - NASHIK NASHIK THE WINE CAPITAL OF INDIA Maharashtra is the largest producer of Grapes in the country. In , the state produced 1.8 MMT of grapes i.e. 81.5% of total production of India. Production of grapes in the state has increased at a phenomenal rate in recent years it has increased over 4 times from 0.4 MMT in to 1.8 MMT in During the same period, while productivity increased manifold from 5.4 MT/Ha to 19.7 MT/Ha, the area under grape cultivation also increased from 82,000 Ha to 92,000 Ha. The state is also a leading exporter of grapes to markets in the European Union and South East Asia. The well-organized co-operative infrastructure of Grape Growers Association has not only promoted viticulture in the state but also brought the state in focus at global levels. Nashik is the leading grape growing district in the state which caters to the export markets and also houses the Wine Parks established by MIDC as specialized infrastructure for food & agro industry. Vineyards and Wineries in Nashik

10 DISTRICT PROFILE - NASHIK MIDC Area Total Land (Hectares) Nashik (Satpur) Nashik (Ambad) Sinnar(GC) Addl. Sinnar Peth (Mini) 5.46 Vinchur (Mini) Dindori (Mini) The district of Nashik has 7 industrial areas under MIDC. The total land coverage of these industrial areas is 2102 hectares. For detailed information on each of these industrial areas. Including availability of land please refer to the following link For further information, please refer to the following links 1. For power tariffs applicable 2. For Land Rates 3. For Water Rates For any further information on the services provided by MIDC and other important state policies including the New Industrial Policy 2013, please visit our website

11 INDUSTRIAL ESTATE PROFILE CHAKAN INDUSTRIAL AREA KEY INDUSTRIAL PRESENCE Spread over 1513 hectares of land, the Chakan industrial area is one of the most sought-after Industrial Estates in Maharashtra. Situated in Pune, Chakan is one of the biggest auto clusters in India. 32 Km form Pune 114 Km from Raigad 136 Km form Mumbai CHAKAN INDUSTRIAL AREA PUNE DISTRICT REGIONAL OFFICE INFORMATION Officers in Charge Shri. Nilesh Gatane ( RO) Shri. A. M. Bhosale (AM) Shri. V. K. Sable (EE) Address - Jog Centre,2nd Floor, Pune Mumbai Road, Wakdewadi, Tel / , Fax Km from 140 Km from 260 Km from Thane Satara Sangli ropune@midcindia.org 11

12 INDUSTRIAL ESTATE PROFILE Advantage Chakan Chakan s proximity and connectivity to places of industrial importance such as Mumbai, Thane, Pune, Satara, Raigad, Sangli amongst others give it a great locational advantage. The Pune railway station is only 33 Km from the Chakan Industrial Area. The station is a major head for freight transport in Maharashtra. Chakan Industrial Area is classified as C region due to which industries enjoy relatively higher fiscal incentives as per industrial policy Chakan is only 122 km and 147 Km from JNPT and MBPT via the 6 lane Mumbai-Pune Expressway. The expressway, has introduced new levels of speed and safety in automobile transportation to Indian roads. Pune, which is only 32 km from the site is one of the most important DMIC nodes and the Chakan s proximity to Pune means that there will be huge industrial development at Indapur as the DMIC project moves towards completion. The Pune International Airport is only 28 Km form the site. The Airport is served by several major airline service providers such as Air India, GoAir, Jet Airways, Lufthansa, IndiGo, SpiceJet, and many others Chakan s proximity to Pune and its central location in Maharashtra gives industries at Chakan, an easy access to a large vendor base. Chakan s proximity and excellent connectivity to Mumbai and Pune make world class social infrastructure easily accessible to companies present at the Indapur industrial area. 12

13 INDUSTRIAL ESTATE PROFILE Site Connectivity Road The industrial area is located on State Highway 55 The 6 lane Mumbai-Pune Expressway connects the site to Mumbai, the financial capital of India The site is connected to Pune via the National Highway 50 Air Chakan is only 28 Km from the Pune International Airport The Mumbai International Airport is only 143 km via the Mumbai-Pune Expressway from the site. It is the second busiest airport in the country, and was ranked 48th busiest airport in world by Airports Council International in The industrial area is only 33 Km from the Pune Railway Station. Chakan is only 122 km and 147 Km from JNPT and MBPT via the 6 lane Mumbai-Pune Expressway Rail Pune is well linked to the entire country by this station. The station is also a major head for freight transport. Port Jawaharlal Nehru Port (JNPT) & Mumbai Port (MBPT) are two of the largest ports in India and are located in Maharashtra. Together they account for 22.45% of the total traffic at all major ports in India. 13

14 EVENTS 4 th GLOBAL ECONOMIC SUMMIT 2014 The 4th Global Economic Summit 2014, a first of its kind initiative undertaken by World Trade Centre Mumbai and All India Association of Industries, in its fourth edition, invited distinguished business leaders, bankers, academicians and technocrats to share business insights and trends in Asia and its role in powering global markets. The Summit was held over a period of three days from 11 th September to 13 th September Shri Bhushan Gagrani (IAS), Chief Executive Officer Maharashtra Industrial Development Corporation (MIDC) was invited to commence the second day s events at the Global Economic Summit Maharashtra is the second largest province of India. It is home to Mumbai the economic and commercial capital of the nation. Maharashtra is the favoured investment destination of the country with conducive business environment and ready availability of land, power, water, connectivity and skilled labour. We invite domestic and foreign investors to invest in the rapidly growing state of the nation. MIDC promises to support investors willing to set up base in Maharashtra, said Shri Bhushan Gagrani, during the second day deliberations of the Global Economic Summit on Asia At the event, Shri Gagrani also presented an AV film that showcased the strengths of the State and key initiatives taken for developing the business ecosystem in Maharashtra. Shri Bhushan Gagrani (IAS), CEO MIDC being felicitated by Shri Vijay Kalantri Shri Bhushan Gagrani (IAS), CEO MIDC presenting the Magnetic Maharashtra AV film 14

15 EVENTS 8 th ASIAN TEXTILE CONFERENCE The 8th Asian Textile Conference ATEXCON was held on September at Hotel Westin, Mumbai, India. The annual event was organised by the Confederation of Indian Textile Industry (CITI) and aimed to focus upon enhancing export competitiveness of textiles and clothing through regional corporation. Every year, ATEXCON brings together the lead players of Asian textile industry, their global input suppliers and service providers to deliberate on capacity building, innovations in technology, trade & business opportunities and other regional as well as global issues concerning this sector. Dr. P. Anbalagan (IAS), Joint Chief Executive Officer Maharashtra Industrial Development Corporation (MIDC) was invited to share key insights on the current scenario of the textile industry in Maharashtra. At the event, Dr. Anbalagan (IAS) delivered a well detailed presentation that elucidated the high impact initiatives undertaken by the Maharashtra Industrial Development Corporation and the Government of Maharashtra to boost the Textile sector in the state; which include development of textile parks in the state and a major capacity expansion of CETPs (Common Effluent Treatment Plants) across the state. Dr. Anbalagan (IAS) also explained various fiscal incentives available to textile industries in the state under the Maharashtra Industrial Policy and the Maharashtra Textile Policy and how these incentives have benefited the textile companies in the state. Dr. P. Anbalagan (IAS) giving the presentation on Maharashtra s Textile Scenario, at the 8 th Asian Textile Conference 15

16 GROWTH STORIES TATA MOTORS DEFENCE SOLUTIONS Tata Motors has been a strategic partner of the Indian Armed Forces from as early as the year The company s mobility-solutions portfolio has grown from strength to strength to include all classes from light to heavy vehicles across the entire defence, paramilitary and police mobility spectrum. Today, Tata Motors proudly partners in enhancing defence, paramilitary and police mobility in the SAARC and ASEAN regions and Africa. Tata s plant at Pune unit is spread over two geographical regions- Pimpri (800 acres) and Chinchwad (130 acres). Tata s Light Specialist Vehicle (LSV), Tata Light Armoured Vehicle, Armoured Safari and Mine Protected Vehicle are manufactured at its Pune plant. Tata Mine Protected Vehicle Tata Light Armoured Troop Carrier TATA Motor s` plant in Pune 16

17 KEY UPDATES MAHARASHTRA - ONE OF THE LEADING STATES IN TERMS OF COMPLETION OF INVESTMENT PROJECTS As per data from the Centre for Monitoring Indian Economy, Maharashtra has been ranked as one of the leading states in the nation for the second consecutive quarter with completion of investments worth INR 57.7 billion. Over 50%of these investments were in the manufacturing sector. Another INR 25.8 billion investments were completed in the services sector, of which INR 17.3 billion belonged to the transport segment. Road infrastructure in Mumbai got a major boost with completion of the INR 17 billion Sion Panvel Expressway. Ministry of Environment & Forests, Government of India S.O.2319(E) [dated ] - Comments invited on the draft notification The Ministry of Environment & Forests, Government of India has invited comments and suggestions for the draft notification issued - S.O.2319(E) [dated ] - that concerns the amendments to be made to existing environmental norms. Any person interested in making any objection or suggestion on the proposals contained in the draft notification may do so in writing within a period of 60 days from the date on which copies of the Gazette of India containing this notification are made available to the public. Please refer to the below link to read the draft notification - For more information, visit

18 FEEDBACK F E E D B A C K Dear Shri Gagrani, I have been regularly receiving MahaConnect but writing to you for the first time. Indeed it s a commendable effort to keep us updated on a regular basis about the developments in Maharashtra. Regards, Jagdish Patankar Publisher, Spectrum Publications Co-Founder, Nutra India Summit, EDGE Forum MD, MM Activ Sci-Tech Communications For Feedback, write to us at: feedback@midcindia.org Contact us: Maharashtra Industrial Development Corporation Udyog Sarathi Mahakali Caves Road, Andheri(E), Mumbai Phone: / 54 / 73, Fax: , mahaconnect@midcindia.org Maharashtra Industrial Development Corporation Knowledge Partner Disclaimer Maharashtra 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 been taken 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 or responsibility 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 any reliance placed or guidance taken from any portion of this presentation All 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 by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of MIDC 18

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