MahaConnect The Business Newsletter 53 rd Edition - September 2014

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1 Government of Maharashtra Maharashtra Industrial Development Corporation MahaConnect The Business Newsletter 53 rd Edition - September 2014 Magnetic Maharashtra Attractions Unlimited From the Government of Maharashtra- MIDC

2 Dear Reader, From the Editor Maharashtra has set yet another precedent by attracting investments of INR 11,510 crore from some of the leaders in the Auto manufacturing sector who aim to expand their manufacturing capacities in the state. Such huge expansion plans of industry leaders clearly reflects the immense support 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 auto companies and the Government of Maharashtra. Under the agreements signed, the auto companies will invest around INR 11,510 crores in the state 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 companies in the field of auto components, textiles, food processing and engineering equipment. The newsletter also covers the industrial estate profile of Lote-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 has grown 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 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. Regards, Bhushan Gagrani (IAS) Chief Executive Officer Maharashtra Industrial Development Corporation 2

3 CONTENTS District Profile Industrial Estate Profile Events (1) Events (11) Success Story Kolhapur, the southern most district of Maharashtra enjoys presence of many large companies in the fields of Auto components, textile, food processing and engineering equipment. The district hosts many industry majors 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. Strategic location, excellent connectivity and presence of a large industrial base has driven the site s rapid industrial development. To learn more about the this industrial area, read the Industrial Estate Profile section of this 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 of INR11,510 crore to expand their manufacturing capacity in Maharashtra. To read more about the MoU signing event, refer to the Events section. On 22nd August 2014, a high power Chinese delegation visited India to discuss about the proposed dedicated Chinese industrial park in the state of Maharashtra. The industrial park will focus on the auto manufacturing sector and will witness large investments from Chinese auto majors such as Beiqi Foton Motor Company. Read the Events section to learn more about this industrial park. Honeywell is a Fortune 100 company that invents and manufactures technologies to address tough challenges linked to global macro-trends such as safety, security, and energy. The company s production facility 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 about the company's growth story in the state of Maharashtra, refer to the Success Story section of this edition

4 DISTRICT PROFILE SOCIO ECONOMIC INDICATORS Population (in 000s) 3,876 No. of households( 000s) 840 Literacy rate (%) 81.51% GDP ( in INR Crore) Per capita income ( in INR) Airports Sea Port/ Nearest Roads Railways INFRASTRUCTURE INDICATORS 45,576 1,01,622 Pune International Airport 245 km JNPT 380 Km 7981 Km Km DISTRICT - KOLHAPUR Kolhapur, the southernmost district of Maharashtra enjoys presence of many large companies in the fields 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 such as Ratnagiri, Sangli, Solapur and Sindhudurg. Kolhapur s excellent connectivity and proximity to other district s of industrial importance such as Pune, Satara and Raigad gives it a major locational advantage. The district s GDP grew by % in 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 other main rivers which flow through the district. KOLHAPUR DISTRICT Maharashtra 4

5 DISTRICT PROFILE KOLHAPUR - CONNECTIVITY ROAD NH 204 passes through Kolhapur. The total length of the highway is 974 km and the highway connects Kolhapur with Sangli, Solapur, Latur, Nanded, Yavatmal, Wardha and Nagpur. Kolhapur is connected to Pune through the National Highway 4, which links the 10 most populous Indian cities in India including Mumbai, Pune, Bangalore, and Chennai. RAIL The station of city of Kolhapur is the end point of Miraj - Kolhapur railway line. This station connects Kolhapur to major Indian cities like Mumbai, Pune, Hyderabad, Bengaluru, Solapur, Nagpur, Tirupati, Ahmedabad, Delhi, Dhanbad through express trains. AIR The Pune International Airport is only 245 km via National Highway 4. In September 2014, it was reported that Union civil aviation ministry has given a green signal to the existing Kolhapur airport for commencement of operations and that the commercial airline services will start very soon at the airport. PORT Jawaharlal Nehru Port and Mumbai Port are 375 km and 390 km respectively from Kolhapur and are connected via the National Highway 4 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 INDUSTRY MAJORS IN KOLHAPUR Kirloaskar Oil Engines Ghatge Patil Industries The company manufactures a variety of high-quality diesel engines that powers more than 85 Industrial Engine applications across seven segments. The company has an advanced manufacturing unit for Industrial Engines at Kagal (Kolhapur). The manufacturing plants are well-equipped with the most advanced and high-tech machinery, having state-of-the-art, cutting-edge technology for machining of all critical components. KOEL is one of the largest Industrial Engine manufacturers in India and produces over 40,000 engines annually. KOEL is the only engine manufacturer with FM approval and UL listing in Asia. GPI is one of the largest companies in the engineering sector in India. The company has manufacturing operations that are located in Kolhapur. After an establishment of a small foundry in 1962, GPI has gradually grown to a sophisticated foundry with Kunkel Wagner High Pressure Moulding Line with Automatic Core Shooting Unit, Automatic Press Pour Machines, S.G. Iron Convertor installed in collaboration with George Fisher and equipment such as Spectrometer etc. GPIs foundry division has been accredited with T.S. Certification. The company has been accredited with API 6A and 6D Certificates by American Petroleum Institute. GPI also developed indigenous solutions as import substitutes for Bharat Earth Movers Ltd. (BEML) 6

7 DISTRICT PROFILE KOLHAPUR FOUNDRY CLUSTER Kolhapur is a leading foundry cluster in India, renowned for manufacturing quality castings. The district houses an important foundry cluster for automotive castings. Growing industrialization in the region led to increase in demand for oil engines and agricultural implements, which inturn 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 Kolhapur export castings to several countries and numerous industries. Casting units catering to Automotive/Oil Engines and Pumps/Valves constitute majority of the Foundry units in Kolhapur. 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 bodies in 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

8 DISTRICT PROFILE INVESTMENT OPPORTUNITIES IN KOLHAPUR Food Processing Kolhapur is predominant area in cultivation of Paddy, Sugarcane, Banana, and Vegetables. The region is famous for Dairy, Poultry farms and Co-operative sugar factories. Proximity to agri-rich districts Sangli, Solapur, Ratnagiri and Sindhudurg makes it a preferable location for agri related industries. Kolhapur has one of the highest productivity in Maharashtra in terms of soybean production. The district is one of the major raisin producing states in Maharashtra Major Companies - Dalmia Bharat Sugar & Inds. Ltd, Lakshmi Sugar Mills Co. Ltd, Shree Panchaganga S S K Ltd., Amrut Industries Ltd. Auto Component Kolhapur s excellent connectivity to Pune, one of the biggest Auto hubs in India has facilitated Auto component companies to set up base in the district. The districts connectivity to water ports have helped auto component companies to easily export their products to European and Middle East market. Easy availability of raw materials and a large existing vendor base are also one of the major factors that has attracted auto component manufacturing companies in the district. Major Companies - Kirloskar Oil Engines Ltd, Ghatge Patil Inds. Ltd, Shriram Foundry Ltd, Menon Pistons Ltd. 8

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 links 1.

9 DISTRICT PROFILE MIDC Area Total Land (Hectares) Kolhapur (Shiroli) Gokul-Shirgaon Halkarni Ajara (Mini) 6.01 Kagal Hatkanangale (GC and Five Star) Gadhinglaj (GC) The district of Kolhapur has 6 industrial areas under MIDC. The total land 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 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 - 9

10 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 in proximity to ports such as Jaigarh Port, Jawaharlal Nehru Port and Mumbai Port; and also in proximity of many districts of industrial importance such as Pune, Raigad, Satara, Sangli and Kolhapur. Officers in Charge Maharashtra Lote Pashuram Industrial Area Ratnagiri District The Industrial area is located on both sides of Mumbai-Goa National Highway 17, which is a major National Highway in the country runs north to south along the western coast of India, parallel to western Ghats. REGIONAL OFFICE INFORMATION Regional Officer - Ratnagiri Division Area Manager - Ratnagiri Division Excecutive Engineer - Ratnagiri Division Address - Mirjole Industrial Area, Near J.K.Files, Ratnagiri Tel / Fax roratnagiri@midcindia.org 10

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

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

The port is a 24/7 deep water port in Ratnagiri, was inaugurated in 2009.

11 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 capacity expansion 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 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 Konkan railway. In order to support industrial development, the Konkan railway came up with an innovative Roll-on Roll-off (RO-RO) service whereby loaded goods trucks are carried on railway flat wagons on Konkan Railway route. This service is unique only to Konkan railway and has completed 16 years of its operation. In , revenue from the RO- RO service increased by 34% over the previous year Roll-on Roll-off service by Konkan Railways 11

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

Ratnagiri station, which is less than 100 km from the site, is one of the most important stations on the Konkan Railway.

The Pune International Airport is only 245 km from the site and is well connected via National Highway 66 Port JSW Jaigarh Port is only

12 INDUSTRIAL ESTATE PROFILE Road 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. SITE CONNECTIVITY Rail Air 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 Port 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 Auto companies to invest INR 11,510 crore in Maharashtra On 28 th August 2014, some of the leading car

13 EVENTS - MOU SIGNING CEREMONY MAHARASHTRA ON COURSE TO BECOME INTERNATIONAL AUTO-HUB Auto companies to invest INR 11,510 crore in Maharashtra On 28 th 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 of INR11,501 crore to expand their manufacturing capacity in Maharashtra. These pacts were signed by Shri Apurva Chandra, Principal Secretary (Industries) on behalf of the state government in the presence of Chief Minister Shri Prithviraj Chavan along with Deputy Chief Minister - Shri Ajit Pawar, Industry minister - Shri Narayan Rane, Minister of State for Industries - Shri Sachin Ahir and Chief Secretary - Shri Swadheen Kshatriya. From Left: Principal Secretary (Industries) - Shri Apurva Chandra, State Industries Minister - Shri Narayan Rane, Chief Minister of Maharashtra Shri Prithviraj Chavan, Tata Motors Executive Director for commercial vehicles - Shri Ravi Pishrody; at the MoU signing ceremony Under the agreements, Tata Motors and Mahindra will invest INR 4,000 crore each, while Bajaj 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. Total investment of all four projects together will result in employment opportunities for 6,270 people. Principal Secretary (Industries) - Shri Apurva Chandra with Mahindra & Mahindra, Executive Director Shri Pawan Goenka at the MoU signing ceremony 13

EVENTS CHINESE DELEGATION IN MUMBAI SETTING UP OF CHIESNE INDUSTRIAL PARK IN MAHARASHTRA On 22 nd August 2014, a high power Chinese delegation led by the Consul General Mr.

Marketing MIDC; to discuss about the proposed dedicated Chinese Industrial Park in the state of Maharashtra. Shri Uddhav Ghughe General Manager - Marketing, MIDC and Mr.

14 EVENTS CHINESE DELEGATION IN MUMBAI SETTING UP OF CHIESNE INDUSTRIAL PARK IN MAHARASHTRA On 22 nd August 2014, a high power Chinese delegation led by the Consul General Mr. Liu Youfa from the Consulate General of the People's Republic of China met with the MIDC (Maharashtra Industrial Development Corporation) delegation led by Shri Uddhav Ghuge, General Manager Marketing MIDC; to discuss about the proposed dedicated Chinese Industrial Park in the state of 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 The Chinese delegation included Mr. Liu Guoyu Commercial Counselor and Mr. Chong Li Vice Consul from the Consulate General of the People's Republic of China, Mr. Edward Xu Chief Financial Officer, India Operations, Foton, among other dignitaries. The MIDC delegation (Left) and the Chinese delegation (Right): In discussion on the proposed dedicated Chinese Industrial Park in Maharashtra. They expressed their intent to set up an Auto Manufacturing industrial park and would prefer a location near Pune to set up the industrial park. The delegation added that they aim to bring many major OEMs from China and also want to set up R&D centers in the industrial park. Beiqi Foton Motors, a Chinese automobile major expressed its willingness to participate as an anchor industry in the development of the industrial park. The meeting successfully concluded with MIDC agreeing to provide full support for the development of the Chinese Industrial Park and both parties agreeing to soon 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

production facility of Honeywell Automation India Limited (HAIL) at Pune is among the few certified not just by Honeywell but also by several government and defence establishments.

15 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 provides full time employment to nearly 3,000 people in the state, besides indirect employment and livelihood generation through ancillary industries. The 85,000 sq. ft. production facility of Honeywell Automation India Limited (HAIL) at Pune is among the few certified not just by Honeywell but also by several government and defence establishments. HAIL s facility is also a dedicated export facility under Electronic Hardware Technology Park (EHTP). In August 2014, Honeywell announced the launch of its new manufacturing facility in Pune, Maharashtra. This 75,000 sq. ft. state-ofthe-art facility for HAIL will significantly expand Honeywell s manufacturing capabilities in the country. The new facility will integrate manufacturing, factory testing, quality control and advanced manufacturing engineering for Honeywell s automation business in India. Thomas A. Szlosek, Senior Vice President and CFO of Honeywell International inaugurating Honeywell s seventh manufacturing facility in Pune Consolidating manufacturing in one location will create efficiencies and improve productivity for us Vikas Chadha, Managing Director, HAIL on Honeywell's second facility in Pune (Maharashtra) 15

16 Feedback F E E D B A C K Dear Mr Gagrani, Extremely good initiative by MIDC. The News Letter not only provides updates on MIDC s existing and new industrial clusters and the activities but also highlights Maharashtra s contribution to industrial and economic development of the nation. Overall a very informative publication. Best regards Pankaj Gupta Chief General Manager External Affairs & CSR Volkswagen Group India 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 16

Maharashtra Automotive Sector. Knowledge Partner

Maharashtra Automotive Sector. Knowledge Partner Maharashtra Automotive Sector Knowledge Partner Maharashtra The enduring leader Macro Economic Pro le The State attracts the highest FDI Investment 70.108 Billion USD (April 00 October 14) GSDP contribution