From the Government of Maharashtra-MIDC. MahaConnect. The Business Newsletter 75 th Edition July 2016

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1 From the Government of Maharashtra-MIDC MahaConnect The Business Newsletter 75 th Edition July 2016

2 Contents From the Desk 03 IT / ITeS 04 District Focus: Pune 07 Investment Plans/Initiative 10 Feedback 11 2

3 From the Desk Maharashtra is the industrial powerhouse of India. The state has an established IT hub in Pune along with Mumbai. It is home to several top-notch international and national IT companies and is a leading contributor to the IT exports of the country. It is also attracting several technology start-ups and has excellent start-up ecosystem to offer budding entrepreneurs. This IT setup is perfectly complemented by the presence of world class educational institutes which provide a pool of skilled resource to these companies. There lies huge opportunities for the IT / ITeS companies to invest in the state. This newsletter showcases the contribution of IT / ITeS sector and investment potential in the state. This newsletter will give a brief of the Pune District. Pune is well known industrial and educational hub of the state. The district has well established industries from various sectors such as Automobiles, IT / ITeS, Pharmaceuticals amongst others. The newsletter throws light on the strengths of above sectors in Pune and the immense investment opportunities available in these key sectors. MIDC has always kept the process of interaction and meeting with delegation of various countries and association a continuous affair. It is a nodal agency which facilitates investment in the State. This newsletter will cover such meetings held over the last month. This month, Maharashtra delegation headed by CM Shri. Devendra Fadanvis visited Russia for the INNOPROM industry trade fair held between July, There were fruitful interactions with St. Petersburg and Government of Sverdlovsk Oblast among others, on cooperation across diverse sectors like trade, economic, scientific-technical and humanitarian etc. This newsletter gives a peak into this INNOPROM event. We keenly look forward to your suggestion and feedback 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 provide in the realm of setting up industries in the State. Regards, Sanjay Sethi, IAS CEO-MIDC 3

4 IT / ITeS Sector India India software product industry is expected to reach the mark of $100bn by Global delivery centres of IT firms in India has reached 580, spreading across 75 countries, as of 2014 India continues to maintain a leading position of global sourcing market. Its market share has increased to 55% in Indian IT industry amounts to 7% of global market With 38 %, IT-BPM sector has the largest share in total services exports from India Maharashtra It is among the leading states in this sector accounting for more than 20% of country s software exports Revenues from IT & ITeS sector in Maharashtra grew to around 7.5% over Pune is among top 3 cities in software export and a major IT hub. Hinjewadi IT Park in Pune is home to many IT companies 465 approved IT private parks and 37 public IT parks developed by MIDC, CIDCO and STPI provide robust infrastructure for present and future development IT MARKET SIZE - INDIA (USD BN) Domestic Export * 2016* *Estimated revenues 10% Source: IBEF, CMIE Share in software exports 6% 7% Bangalore Hyderabad 8% 31% Pune Chennai 11% Mumbai Gurgaon 12% Noida Index 4

5 IT / ITeS Sector IT-ITeS Hubs in Maharashtra Major IT-BPM Hubs Pune and Mumbai together have lion s share in IT export of more than USD 8 billion Mumbai- Thane Nashik Ahmednagar Aurangabad Amravati Nagpur Another prominent city is Nagpur with IT companies like TCS, Wipro HCL, Persistent Technologies amongst other at IT park and MIHAN SEZ Aurangabad, Nashik, Kolhapur, are also emerging as software export hub Nashik is also emerging as BPO hub with companies such as WNS Global Services, Tricom India and Datamatics establishing their presence Pune Satara Solapur Sangli Latur Dedicated Institutes Center for Development of Advance Computing (C-DAC) is a premier third party R&D organization in IT&E (Information Technologies and Electronics) in the country working on strengthening national technologies capabilities in the context of global developments Kolhapur Indian Institute of Technology, Bombay (IIT-B) is premier engineering institute located in Mumbai developed for studies in specialized engineering and technological sciences Index 5

6 IT / ITeS Sector Maharashtra State IT / ITeS policy 2015 Key Players in Maharashtra The Government of Maharashtra came out with it First IT policy in 1998 and since then followed it up with IT / ITeS policy 2003 and Latest IT / ITeS Policy 2015 builds upon previous policies aims to generate employment, increase efficiency and promote growth for IT sector in the state Key Initiatives and Incentives of the IT / ITeS Policy Additional FSI and space utilization of IT parks Upto 200% additional Floor Space Index (FSI) in IT parks Property taxes reduced for IT/BPO units, same as residential rates Registered IT / ITeS units shall be exempt from Octroi/Local Body Tax (LBT)/ entry tax/ escort tax or any other cess or any tax IT / ITeS will be allowed to be set up in any zone IT / ITeS industry will be permitted to work for 24x7x365 days without any close down Incentives will be provided for Integrated IT townships (IITT) and Data Center located anywhere in the state Fiscal incentives like exemption from Stamp Duty and Electricity Duty, Power supply at Industrial Tariff and Electricity Tariff subsidy Index 6

7 District Focus: Pune Pune Snapshot Demographic Snapshot Population (thousands) 9,429 Literacy Rates (%) 76 District Income (Crore) 1,37,651 Geographic Snapshot Area ( thousand Sq Km) 15.6 Talukas 14 Major Cities 35 Industrial Snapshot No. of Factories 5,376 Total Factory workers 426,273 Pune Administrative Setup Pune District is in the western region in Maharashtra in India. It is bounded by Thane District to the northwest, Raigad District to the west, Satara District to the south, Solapur District to the southeast, and Ahmednagar District to the north and northeast. Pune City is its district headquarters. Pune district has 14 talukas viz. Pune, Haveli, khed, Ambegon, Junnar, Shirur, Daund, Indapur, Baramati, Purandhar, Bhor, Velhe, Mulshi and Maval. At the district level, collector is the Administrative Chief and at tehsil level, Tehsildars are looking after the administration as per Collector s instructions. For rural development, Chief Executive Officer of Zilla Parishad and at block level, Block Development Officers are incharge of the administration. Municipal Councils are responsible for urban development of all the tehsils. There are 13 Panchayat Samities, 11 Nagar Parishads and 2 Municipal Corporations. Index 7

8 District Focus: Pune Pune District Physical and Social Infrastructure Road Total length National And State Highway in the district is about 2662 kms. Pune Mumbai express highway is India s first 6 lane concrete expressway connecting Pune to Mumbai, the financial capital of India. In addition it has very good connectivity across industrial towns Railways Pune comes under the Central Railway Zone of Indian Railways. The total railways length in the district is about 639 kms. It has good connectivity to major India cities like Mumbai, Delhi, Hyderabad, Daund, Baramati, Miraj, Nashik, Aurangabad, Solapur, Kolhapur etc. Airport Pune is well developed city with world class urban infrastructure It is well known as the Cultural capital of Maharashtra Pune district has immense presence of various industries across sectors Education Pune is well connected to major cities like Delhi, Mumbai, Bangalore and Hyderabad. Pune airport is amongst the busiest airports in India. Traffic at this airport during 2015 was about 54 lakhs and cargo tonnage was about 27,000 The major industrial sectors in Pune are IT / ITeS, Automobile, Steel Equipment, Biotech and Pharmaceuticals In addition, it is also an educational hub which complements the growing industry demand for skilled and educated workforce Pune district has 64 ITI and ITC to cater to the skill requirement of the heavy industries. It has 125 technical Institutes and 81 higher educational institutes to cater to the growing demand of industries for semi-skilled and highly skilled resources Index 8

9 District Focus: Pune Investment Opportunities Auto & Auto Component Pune is major auto hub and is home to international and national auto major like Mercedes, Volkswagen, General Motors, Tata Motors, Mahindra, Bajaj Auto amongst others US automaker FIAT will soon start producing iconic JEEP model from the Ranjangaon plant near Pune Chakan Industrial Area houses many of these auto makers and has rapidly emerged as major Auto Hub Similarly Pimpri-Chinchwad and Bhosari area have well established cluster in Auto Ancillary sector IT / ITeS Several IT parks like Rajiv Gandhi IT Park (Hinjewadi), Magarpatta IT Park, EON IT Park and others in Pune are home to IT behemoths like Infosys, TCS, Accenture etc. In addition Pune also has well established BPO/KPO industry which provides valuable services to national and international clients Pune is also attracting several innovative start-ups in the field of Health-Tech. It has among the best start-up ecosystems in India Pharmaceuticals Pune has been first choice for several pharmaceutical companies It is home to major firms like Serum Institute of India, Lupin Pharma, Hindustan Antibiotics, Emcure Pharmaceuticals etc. World class hospitals, medical colleges and clinics in Pune, offer excellent opportunities for clinical research and training Key Industry Players Index 9

10 Maharashtra Updates: Investment Plans/ Initiatives / Events INNOPROM- RUSSIA July,2016 Maharashtra was a member of Indian delegation which participated in the INNOPROM, Russia s largest industry trade fair, from July Nirmala Sitharaman, Minister of State for Commerce and Industry, headed the Indian delegation. Also present were the CMs of Maharashtra, Andhra Pradesh and Rajasthan. Government of Maharashtra took a lead and signed key agreements for partnership and cooperation across diverse sectors. Seen besides is Maharashtra CM Shri. Devendra Fadnavis with Yevgeny Kuyvashev, Governor of Sverdlovsk Oblast at the INNOPROM International Exhibition, signing memorandum of cooperation. The document envisages joint work between the two regions in the trade, economic, scientific-technical and humanitarian sectors. This agreement aspires to encourage cooperation between economic entities within the Sverdlovsk Oblast (The Russian Federation) and Maharashtra State (The Republic of India). Furthermore Maharashtra also entered into negotiations on cooperation with St. Petersburg during the official visit. Cooperation on cultural, education, and economic projects implemented by St. Petersburg and Mumbai under the Cooperation Agreement between St. Petersburg (Russian Federation) and Mumbai (India) signed on December 3, 2004 were negotiated. Possible involvement of Vodokanal of St. Petersburg as a consultant in a wastewater treatment construction and operation project implemented in Mumbai was discussed. Also discussed was possible use of Vodakanal technologies and other companies from St. Petersburg in cleaning of Pass of Mithi River flowing in Mumbai. Maharashtra CM, Shri. Devendra Fadnavis stressed on the immense opportunities for Russian investors to invest in Ports, Auto Industry, DMIC, Infrastructure, Rail network & Metro system and extraction of mineral resources in Maharashtra Devendra Fadnavis, Chief Minister of India s Maharashtra State and Yevgeny Kuyvashev, Governor of Sverdlovsk Oblast. Index 10

11 Feedback For feedback, write to us at: Maharashtra Industrial Development Corporation Udyog Sarathi Mahakali Caves Road, Andheri (E), Mumbai Phone: /54/73; Fax: From the Government of Maharashtra-MIDC Knowledge partner Index 11

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