MahaConnect The Business Newsletter From Government of Maharashtra - MIDC
Editorial Dear Reader, Housing India's financial capital, the state of Maharashtra attracts investors from across the globe. Being a port state, Maharashtra has been on global trading map for centuries. Over the years, it has positioned itself as one of the leading industrial states in the country. Therefore, houses numerous investors who have global and national foot print and are leaders in their line of work. This edition of the newsletter covers the success story of a brand which is one among the three leading German automakers, Mercedes Benz India which is also headquartered in the State of Maharashtra. This edition covers the District profile of Raigad district, which is now emerging as a big center of attraction for MNCs, Developers and Investors, as today it is well positioned to be the next big growth center. Additionally, it also covers industrial profile of Waluj and two bilateral meetings with Japanese and Chinese delegations We keenly look forward to your feedback and suggestions in making MahaConnect more enriching for our readers. Please write to us at mahaconnect@midcindia.org. We also invite you to visit 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) CEO, MIDC. 1
Contents Bilateral Meeting with Chinese Delegation Cover Story of the Month Raigad Next Big Growth Centre The district of Raigad is located in south western side of the State and stretches over 715.2 thousand hectares. Alibaug is the District Headquarter of the Raigad. The district is bounded by Mumbai Harbour to the northwest, Thane District to the north, Pune District to the east, Ratnagiri district to the south, and the Arabian Sea to the west. Read more on Page 3 Chinese delegation visits Maharashtra The Chinese delegation representing province of Changsha, headed by Mr. Lianhong and comprising representatives from Sany Heavy Industries was invited for a business meeting with Industries Department and Maharashtra Industrial Development Corporation (MIDC). Read more on Page 9 Success Story of Mercedes in Maharashtra Industrial Estate Profile- Waluj Waluj Waluj is a town in Aurangabad district, which is well known and has been identified as an industrial area due to its characteristics features which has helped this place to develop and provide a better option for the investors......read more on page 6 and 7 Success Story Mercedes-Benz is part of the "German Big 3" luxury automakers, along with Audi and BMW, which are the best selling luxury automakers in the world. Mercedes-Benz has been associated with India for more than 50 years. Presently, Mercedes-Benz India s engagement in India covers several domains Read more on Page 10 Feedback Japanese Business Delegation Japanese Business Delegation Visits Maharashtra Your Comments I Thanks for sending me regularly this important newsletter. Excellent presentation of facts in the newsletter......read more on page 11 A Japanese delegation comprising 25 members, led by Mr. Masayuki Matsushita, Chairman, International Committee, Kansai Economic Federation (Kankeiren) met the Indian delegation headed by Mr. Apurva Chandra, Principal Secretary, Industries, Government of Maharashtra on 14 th March, 2014 in Mumbai...Read more on page 8 2
Raigad Next Big Growth Centre District Profile Socio Economic Indicators Population (in 000s) 2,635 No. of households( 000) 597 Literacy rate (%) 83.89 Decennial Growth Rate (%) (2001-11) 19.36 GDP (in INR Crore) 34,377 Per capita income(in INR) Infrastructure Indicators Airports Sea Port/ Nearest Roads 1,18,885 Nearest International airport Pune126 km Mumbai 5399 km The district of Raigad is located in south western side of the State and stretches over 715.2 thousand hectares. Alibaug is the District Headquarter of the Raigad. The district is bounded by Mumbai Harbour to the northwest, Thane District to the north, Pune District to the east, Ratnagiri district to the south, and the Arabian Sea to the west. The district is located between North latitudes 17.51 to 19.80 and East longitudes 72.51 to 73.46 Raigad is guarded by the Sahyadri Hills at one side and Arabian Sea at the other side. The villages & towns are located in between Sahyadri Hills & Arabian Sea. Amba, Kundalika, Bamangar and Savitri are the major rivers of the region. By rail, the Konkan Railway line starts at the Roha taluka and passes through the Mangaon taluka in the district. The Central Railway Line of Mumbai to Pune also passes through the Karjat taluka of Raigad. Panvel Junction is the most important railway station in the district; it is connected to Mumbai (by both the Harbour Line and Main Line of Central Railway), Thane (by Trans-Harbour Line), Roha, Vasai (Western Railway) and Karjat. Railways Industrial Presence 3 299 km Raigad is one of the important nodes of the upcoming DMIC (Delhi Mumbai Industrial Corridor) and in the near future, the development of DMIC will lead to a massive expansion in industrial activity in the district. Situated on the western coastal stretch of Maharashtra, the district includes the large natural harbour of Pen- Mandwa, which is immediately south of Mumbai harbour. The Jawaharlal Nehru Port in Raigad, which handles a significant 11.82 per cent of India s total cargo traffic and Raigad s proximity to the Mumbai Port which handles 10.63 per cent of India s total cargo traffic make Raigad an opportune place to set up an industry. Further, to its north, Raigad has the planned township of Navi Mumbai which has basic infrastructure worth INR 40 billion (USD 650 Million) already in place. Dr.Babasaheb Ambedkar Technological University is the only technical university in the state, which is located at Lonere in Raigad. With the literacy rate higher than the state s average the availability of skilled labour is major advantage for industries in the region.
Raigad Next Big Growth Centre District Profile Seamless Connectivity Skilled Labor JNPT Large Consumer Market Why Raigad Mumbai@100km Availability of Raw Material Large Industrial Presence DMIC Node Investment Opportunities Engineering Pharmaceuticals Power utilities are currently the biggest contributor to growth of the Engineering sector. The Pharma sector imports raw materials like chemicals intermediates and active pharmaceuticals ingredients (APIs). Proximity to JNPT and MBPT will give Pharma companies a major cost advantage by reducing logistics cost. 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 and distribution equipment. Raigad has four rivers namely Amba, Kundalika, Bamangar and Savitri. The availability of water is also a contributing factor to Raigad s attractiveness as a Pharma destination. Cheaper land rates than Mumbai and Pune significantly reduce land cost, thus making it more viable for companies to set up Pharma industries here. Key raw materials required by the sector are ferrous and non-ferrous metals (mild steel and aluminium) and ready availability of these materials, gives companies a major cost advantage, as materials account for nearly a significant share of this industry s operating costs. The presence of large companies such as Uttam Galva Steels Ltd, POSCO Steel, Welspun Maxsteel, Shree Vynketesh Steels, Raigad Castings, and many others in the district ensure abundant availability of raw material for the engineering sector. 4
Raigad Next Big Growth Centre District Profile Food Processing Raigad is one of the two districts in the Konkan region of Maharashtra, which are the major producers of Alphonso variety of mangoes. Other types of Mangoes are also produced in large quantities in the district. Hence there exists an opportunity of production of processed foods such as - Jam, Pickles, Juice, Jelly etc Raigad contributed a significant 11 per cent of the Maharashtra s total production of 145,110 Tonnes of inland fish The Konkan region of Maharashtra is also known for cashew production. A total of 11400 tons of cashew was produced in the district in 2010-11. There exists an opportunity to make cashew syrup from Cashew apple and process and export dried nuts. Rice is primarily grown in all four districts of the Konkan region and production of rice has increased at a steady rate over the past few years. Once milled, rice can be stored without refrigeration for over one year and subsequently processed. There is a huge potential of exporting rice-based value-added products in Raigad owing to the availability of the raw rice. The district of Raigad has 6 industrial area under MIDC. The total land bank coverage of these industrial areas is 3623.73 hectares. MIDC Area Patalganga ia &Addl. Patalganga Total Land (Hectares) 647.62 Roha 244.69 Vile-Bhagad (GC) 764.16 Mahad 471.96 Addl. Mahad 329.49 Nagothane 805.81 For detailed information on each of these industrial areas. Including availability of land please refer to the flowing link http://www.midcindia.org/pages/industrialpage.as px For further information, please refer to the following links 1. For power tariffs applicable http://www.midcindia.org/pages/powertariff.aspx?indusarea=all®ion=all 2. For Land Rates http://www.midcindia.org/pages/filterlandrates.a spx?indusarea=all®ion=all 3. For Water Rates http://www.midcindia.org/pages/filterwatertariff.aspx?indusarea=all®ion=all 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 www.midcindia.org 5
Industrial Estate Profile-Waluj Industrial Estate Regional Office Officers in Charge Shri. A. M. Shinde (RO) Shri. Achare (AM) Shri. R.S. Gawade (EE) MIDC Aurangabad Industrial Area District- Aurangabad Tel- 0240-2331013/2346321 Email roaurangabad@midcindia.org Classification D+ Waluj is a town in Aurangabad district, which is well known and has been identified as an industrial area due to its characteristics features which has helped this place to develop and provide a better option for the investors. Geographical Features General Information Site Connectivity Location Profile Longitude : 75.14 East Latitude : 19.48 North Altitude : 496 meters (1360feet) Temperature Summer Average from 21 40 C Winter Average from 10 25 C Rainfall : Average annual rainfall 725 mm approx. MIDC has developed the Waluj Industrial Area with the objective to attract industrialists and local entrepreneurs to set up industries and invest in the region. MIDC provides the best possible infrastructure to facilitate industrial development By Road Waluj industrial area is located near Aurangabad - Ahmednagar bypass road( SH-60), 8 km away from Aurangabad city,185 km from Nashik city, 227 km from Pune and 381 km from Mumbai. By Rail The nearest railway station is Aurangabad which is 8 km; Nashik - 185 km; Pune - 227 km. Airports:- Domestic Airport - Aurangabad - 19 km; Nashik- 173 Km International Airport- Pune-221 Km; Mumbai- 392 Km Water Ports Nearest port Jawaharlal Nehru Port Trust (366 km) 6 Aurangabad District, Maharashtra Social Infrastructure Colleges Hi-tech Institute of Technology- Waluj, Government College of Engineering, Aurangabad, Y.B Chavan College of Pharmacy, Aurangabad Hospitals Mahatma Gandhi Mission Hospital- Aurangabad, Shri Siddhivinayak Hospital- Aurangabad, Kodikeri Memorial Hospital- Aurangabad Schools St. Xavier s High School- Aurangabad, Little Flower High School- Aurangabad, Holy Cross High School- Aurangabad, Govt. Public School, Aurangabad Hotels The Ambassador Ajanta- Aurangabad, VITS, Aurangabad, The Taj Aurangabad, Windsor Castel Hotel- Aurangabad
Infrastructure Availability Tariffs Water Water Supply from Jaikwadi Dam has been implemented by MIDC Source Jaikwadi Dam Supply scheme 63 MLD Installed Capacity 63 MLD For further information on land, water and power rates, please refer to the following link http://www.midcindia.org/pages/d efaultmidc.aspx# Existing Industries Internal Road connectivity Plots are divided into small, medium & large sizes and with respect to these plots the internal roads has been constructed. The roads are mostly 50 M and 25 M wide and are well connected across the industrial area. Plot Holder Name M/s Bajaj Auto Ltd. M/s Garware Polyester LTd. M/s Millelium Beer Type of Industry Automobiles Polyester film. Beverage M/s Taiyo Lucid Fiber Electricity M/s CEAT Tyres. Tyre Maharashtra State Electricity Distribution company ( MSEDC) provides electricity to major industrial areas. Surplus power is available in this industrial area. M/s Endress & Hauser Engineering Existing substation Power sub station of 400 KV capacity has been installed in Kadegaon within the industrial area. Power Generating Capacity - The substation has power generating capacity of 435 MVA Capacity (Installed) 435 MVA Telecommunications The site is in close proximity to the major cities and districts housing all the major existing telecom providers with a good network connectivity. Wockhardt s Manufacturing Facility in Waluj 7
Japanese Business Delegation Visits Maharashtra Events A Business Delegation from Kansai Economic Federation (Kankeiren), Japan met Mr. Apurva Chandra, Principal Secretary, Industries and MIDC officials in Mumbai on March 14, 2014 A Japanese delegation comprising 25 members, led by Mr. Masayuki Matsushita, Chairman, International Committee, Kansai Economic Federation (Kankeiren) met the Indian delegation headed by Mr. Apurva Chandra, Principal Secretary, Industries, Government of Maharashtra on 14 th March, 2014 in Mumbai. This meeting was jointly hosted by the Industries Department and Maharashtra Industrial Development Corporation (MIDC). The Japanese delegation visited Maharashtra to explore various opportunities available for Japanese companies willing to invest in the State and to understand the current policy initiatives taken by the Government of Maharashtra to promote industrialisation and the package of incentives that the state offers to its investors During the meeting Mr. P. Anbalgan, Joint CEO of MIDC gave a presentation elucidating the factors that make Maharashtra an attractive investment destination. Automobiles and Ancillary sector, Electronics sector and Food Processing sector, and he also talked about various factors such as availability of raw material, skilled labour, Industrial infrastructure et.al, that make these sectors among the top sectors which attract huge investment in the State. Adding further, Mr. Chandra said that the state leads in the production of cotton, and there exists a great opportunity for Japanese companies to set up textile manufacturing plants in the state. Later, discussions were held around the potential districts and related advantages to set up industries in two and three tire cities of these potential districts, which have relatively cheaper land rates, proximity and connectivity to port including other benefits were also brought to the fore during the discussion. Further, Mr. Chandra addressed queries of the Japanese delegation related to obtaining various approvals required for setting up any business in the State and mentioned that the process of obtaining such approvals will soon become significantly faster owing to the establishment of the Investor Facilitation Cell MAITRI. The Japanese delegation also enquired about the top sectors to invest in the state. To answer this question, Mr. Chandra highlighted the key sectors viz. 8
Bilateral Meeting with Chinese Delegation Events The Chinese delegation representing province of Changsha, headed by Mr. Lianhong and comprising representatives from Sany Heavy Industries was invited for a business meeting with Industries Department and Maharashtra Industrial Development Corporation (MIDC). This meeting was convened on the 11 March 2014 in Hotel Leela in Mumbai. The representatives from both the sides discussed on the investment opportunities available in Maharashtra and the best practices for infrastructure development in industrial parks of India, particularly in Maharashtra as well as in China. Further, the Chinese delegation committed to provide their full support to the Maharashtra government to attract investments from those Chinese companies that have a substantial market in India. The Chinese delegation concluded by suggesting that more visits and P2P (Person to person) meets should be organised. They invited Mr. Apurva Chandra,Principal Secretary of Industries Department, Mr. Bhushan Gagrani CEO, MIDC and others present in the meeting, to visit the city of Changsha in China. The bi- lateral meeting began with the representatives from both sides introducing Changsha and Maharashtra respectively, which was followed by exchanging information on major industries and preferential policies in their respective regions for attracting investments. During the meeting, the Indian delegation spoke about MIDC s successful land acquisition in Aurangabad and development that is taking place through a joint venture between the Government of Maharashtra and the Government of India. Aurangabad is one among the most industrialised districts in the State and it was proposed during the meeting that a part of Aurangabad District could be developed into a Chinese Industrial Cluster which will be dedicated for Chinese companies to set up their manufacturing units in that particular cluster. Later, a representative from Sany Heavy Industries Ltd. shared his experience of the company being one of the first movers in the state from China and shared his experience on the journey of extensive growth of Sany heavy industries in Maharashtra due to the supportive policies of the State Government. Representatives from Sany Heavy Industries Ltd. also mentioned about their intentions to expand their existing facility in Maharashtra. 9
Success Story of Mercedes in Maharashtra Success Story Experience Excellence at Mercedes Chakan Unit Mercedes-Benz is part of the "German Big 3" luxury automakers, along with Audi and BMW, which are the best selling luxury automakers in the world. Mercedes- Benz has been associated with India for more than 50 years. Presently, Mercedes-Benz Indian s engagement covers several domains such as Local production of Mercedes-Benz cars, Making available imported Mercedes-Benz cars, Commercial Vehicle operations, Global sourcing of auto components and Captive automotive technology research and development In 2009, the German premium car maker moved into its world class production facility spread over 100 acres in Chakan, near Pune. This plant earned the benchmark of being among the fastest green-field operations ever to be created and is rated among the top most CKD plants of Mercedes-Benz, globally. An excellent industrial infrastructure, growing market, increasing demand and investor friendly policy of the State government of Maharashtra are the ingredients of Mercedes-Benz success story in Maharashtra. Mercedes plant in Chakan, Pune is rated amongst the best assembly plants within the Daimler world. The Mercedes Benz India s paint shop technology is a benchmark and has no parallel so far. Mercedes-Benz India has achieved the distinction of becoming the only market to start the production of the second generation GL-Class full-size luxury SUV, outside Mercedes-Benz s SUV plant in Tuscaloosa, USA. The roll-out of the all new second generation GL-Class from Mercedes-Benz India s world-class plant in Chakan near Pune in Maharashtra, reiterates Mercedes-Benz s aggressive product portfolio for the Indian market and also underlines the company s long-term strategy and commitment. 10 The Centre of Excellence is located at the Mercedes-Benz premises in Pune. Pune is one of the biggest industrial towns of Maharashtra. It has an international airport that operates domestic as well as international flights. It is well connected by road as well as rail. There is also a world-class helipad within the premises. After 19 years of operations in India, Mercedes rolled out its 50,000th car. The first car rolled out from the plant on March 31, 1995, and the 50,000th rolled out from Chakan on January 28, 2014. This was marked by the launch of a C-Class Grand Edition. The C Class is one of the largest selling in the mid-sized luxury car segment. The C-Class Grand Edition is priced at INR 39.16 lakh for the diesel and INR 36.81 lakh for the petrol variant. Mercedes-Benz India is expanding its portfolio of cars assembled in India. Mercedes-Benz has also lined up 10 new launches for 2014, two of which will be unveiled at the Auto Expo. Mercedes-Benz India is in the process of expanding annual capacity of the Chakan plant from 10,000 units to 20,000 units. The expansion of the factory is in its final stage. German auto maker has also decided to undertake a 1,500-crore brownfield expansion of its Chakan unit, handling passenger car, buses and truck chassis. Mercedes-Benz s Manufacturing Facility in Chakan, Pune
Government of Maharashtra Dear Sir, Thanks for sending me regularly this important newsletter. Excellent presentation of facts in the newsletter Maharashtra Industrial Development Corporation Udyog Sarathi Mahakali Caves Road, Andheri(E), Mumbai-400 093. Board Numbers: 91-022-26870052 / 54 / 73, Fax: 91-022-26871587, E-mail: mahaconnect@midcindia.org, feedback@midcindia.org MIDC website has also become more investor friendly. Regards, A D Mahajan Head-Advisory, SICOM Limited Mercedes facility in Pune 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. 2014 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 11