Post on 10-Jun-2015
Investing in Gujarat
India – The Favoured Investment Destination
GDP GrowthStrong Economy9.2% 9.0%
7.4% 7.4%8.6%
4.0%
6.0%
8.0%
10.0%
GDP Growth
Service Sector
Agriculture16%
Strong Economy
0.0%
2.0%
4
2007 2008 2009 2010 2011
Trillion dollar economy - world’s 12th largest
55%Manufacturing
Sector29%
Steady GDP Growth
Top FDI Destinations of the World
Services Sector21% Hardware and
SoftwareOther 44%
FDI – Top Sectors
pRank Countries
1 China2 United States
3 India4 Brazil
8%Telecommunic
ations8%
Real estate14%
Automobile5%
44%
4 Brazil
5 Russian Federation
6 United Kingdom
The third most favored destination for FDIUSD 17 billion FDI inflow between April – January 2011
India secured the top rank in availability of skilled manpower, access to local and international markets and strong market
fundamentals
1. Strategic Location
ents
2. Strong Economy
3. Excellent Infrastructure
4 Impetus to Industries
Con
t 4. Impetus to Industries
5. Doing Business
6. Government Initiatives
i i7. Opportunities
1. Strategic Location
Strategic location providing access to major international and domestic markets Located on the west coast of India and connected to major ports of UK, Australia,
Middle East and East Asian economies
1 600 km coast line offers numerous opportunities for port based industries1,600 km coast line –offers numerous opportunities for port based industries
Gateway to land locked states in India
2. Strong Economy
Leading investment destination with highly competitive investment climate
Gujarat's share in India – 5th largest economy Ahmedabad is rated as the third fastest growing city in the world (2010) by Forbes magazine
Net Manufacturing value
No. of factories
Geographical area
Population
12%
10%
6%
5% Top contributor to Indian economy, around 22 % of Indian exports contributed by Gujarat
80%80%65%62%
51%%
Contribution of Gujarat to India
Exports
Fixed capital investment
Value of output
22%
17%
16%
535%
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One of the most industrialized state, with 38 % of GDP contributed by secondary sector
Sustained investor confidence the state with the highest
Salt
pro
ces
Dia
mp
roce
s
Pla
stic
In
du
Pet
roch
em
Ch
em
Ph
arm
aceu
tSustained investor confidence, the state with the highest number of proposals in India
Delivering promises, the state with highest number of MoU and IEM realization
3. Excellent Infrastructure
Gujarat’s excellent trade and transportation networks create better market access and trade flows for companies
The Sardar Sarovar Narmada river linkage project, to create continuous water supply throughout the state
A power sufficient state with one of the highest per capita power consumptionHigh teledensity and excellent internet
connectivity in the state
Excellent road and rail networkState with the highest number of ports and airports
The only Indian state with an integrated state-wide Gas Grid
4. Impetus to Industries
Taking a lead in creating the right kind of infrastructure with a focus on the future
12 Special Investment Regions of more than 100 sq km each being planned
1 Petrochemical and Petroleum Investment Region, 60 Special Economic Zones and existing 200 industrial areas, creating opportunities across sectors
38% of the planned Delhi Mumbai Industrial Corridor route is through Gujarat
Development of new industrial areas for agro parks, tourism , recreation and information technology
5. Doing Business
A Globally competitive business destination with outstanding human capital
Availability of large pool of highquality human resources for all sectors
Home to some world renowned institutesin management, engineering and design
The land of entrepreneurs who arespread across the globe
Availability of high quality healthcare facilities
Government initiated schemes for womenempowerment, reducing infantilemortality and primary education support
State with one of the least utility costs, Taxesat par with other business destinations andglobally cost competitive labour force
6. Government Initiatives
Conducive Business Environment
Awarded 2nd best state in Asia pacific category in ‘Improvingtransparency, accountability and responsiveness in publictransparency, accountability and responsiveness in publicservice’ by UN in 2010
Stable political climate
Urban development initiatives for high quality living
Simplification of processes and single window approach for investorsp p g pp
International campaigns for investment promotion across sectors
Wide array of choices for tourists right from heritage monuments,archeological sites , wild life and beaches
Favorable policy and regulatory environment
Industrial Policy 2009– for high quality socio economic development
Sectoral policies for promotion of investment and growthSectoral policies for promotion of investment and growth
Incentives under SEZ, SIR and Industrial Area development
Subsidies for environment protection
A leader in encouraging private participation under public-private partnership
7. Opportunities
A land of immense opportunities, an opportunity for everyone
Industry specific advantages – in a slew of sectors
Presence of more than 370,000 MSMEs in the state
Strong growth of agriculture and horticulture - creating o o t ities i ag o ocessi gopportunities in agro processing.
Historically strong gems and jewelry sector
Strong mineral base
Large investments requirement in infrastructure
Opportunities in ports and port based industries
Opportunities in the tourism industry spread across the value chain
Opportunities in sunshine sectors like solar power and biotechnology
Chemicals and Petro Chemicals
Engineering and Auto
Financial ServicesFinancial Services
Food and Agro
Gems and Jewellery
H lths Healthcare
Knowledge Sector
Mines and Minerals
y Se
ctor
sP
rior
ity
Oil and Gas
Pharmaceutical and BiotechnologyP
Ports, Shipbuilding and related Industries
Textiles
Tourism
Urban Development
Water Conservation and Efficient Use
Chemicals and Petrochemicals
Basic FactsHub of chemical industry in India, contributes to more than 62 % of national petrochemicals and 51% ofnational chemical sector output
Around 6,600 chemical and petrochemicals products are produced in the state
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More than 35% of large and medium units in states
Around 16% of employment in the state
Leads all states in India in terms of investments committed in chemical and petrochemical sector
Large quantity of production of basic chemicals caustic soda, caustic potash and chloromethane
Largest supplier of bio fertilizers, seeds, urea and other fertilizers
Investment Opportunities
High performance chemicalsHigh performance chemicals
Pigments and coating products
Geo Textiles
Engineering Polymers
Feedstock linkagesFeedstock linkages
Bio refineries
PP filament yarn
Acrylic fibres
Engineering and Auto
Basic Facts
Highly industrialized state, with more than 38 % of GDP contributed by secondary sector
38% of planned Delhi Mumbai Industrial Corridor route is through Gujarat.
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15% contribution to total industrial production in Gujarat and more than 9% to national engineering output
More than 30 industrial clusters in the engineering sector
9,607 Industrial Entrepreneurs Memoranda (IEM) filed till June 2010 with an estimated investment of Rs 7 702 billion and employment potential of 1 9 million7,702 billion and employment potential of 1.9 million
Having manufacturing plants of Tata Motors, Hyundai Heavy Industry and Bosch Rexroth India, state is marching towards becoming auto hub of India
Investment Opportunities
Turbines, transformers, generators
Power equipment manufacturing
Auto components and ancillaries
Infrastructure equipment
Assembling and manufacture of automobiles
Modern cement and textile machinery
Financial Services
Basic Facts
State accounts for 30% of India’s stock market capitalization
State is home to 6,091 branches of Scheduled Commercial Banks including private sector
A th d t l d b RBI B k i G j t h b tili i l t % f th ti d ditAs per the data released by RBI, Banks in Gujarat have been utilizing almost 100% of the sanctioned credit
142 branches of Life Insurance Corporation of India (the market leader)
MSMEs: Over the last three years (from 2007 to 2010), about Rs. 8,000 crore of investment is being made in setting up MSMEs in Gujarat
Select Players
Investment Opportunities
Core banking solutions
A li ti d l t d i t
y
Application development and maintenance
Off-shoring centralizable operations
Back office processing of banking, financeservices and insurance companies like :
• In-bound an out-bound customer• In-bound an out-bound customerservice
• Equity research
• Loan processing, etc.
Food and Agro
Basic Facts
Out of the total geographical area of 196 lakh hectares in Gujarat, total cropped area is around 128lakh hectares (65%)
Produced 218 million tonnes of food grains in 2009-10
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Produced 218 million tonnes of food grains in 2009 10
Wheat, Bajra, Rice, Maize, Groundnut, Mustard, Sesame, Pigeon pea, Green Gram, Gram, Cotton,Sugarcane are the major crops
Gujarat has highest productivity in custard, castor, guava, potato, onion, cumin, fennel and cotton,second highest productivity in groundnut and bajra, third highest productivity in gram, guar,b d b l hbanana and isabgul in the country.
Investment Opportunities
Agri / horticulture infrastructure projects: coldt f h f it d t bl k hstorage, fresh fruits and vegetables pack house,
mechanized grain handling and storage at port, FoodParks, terminal markets, irradiation centers.
Export-oriented processing
Value added processing based on local resourcesp g
Natural resources based opportunities: natural foodcolors, medicinal herbs extraction, tree oil based bio-pesticides, food
Gems and Jewellery
Basic FactsContributes 80% of total diamonds processed in India
Gujarat’s comparatively cheaper and skilled workforce can be effectively utilized to setup large low cost production bases for domestic and export markets
f l d ll f d
Investment Opportunities
Jewellery Fabrication
White GoldOver 70% of total Gems and Jewellery exports of India
90% of total diamonds in Gujarat are processed by about 10,000 diamond units located in and around Surat
85% of unique handmade silver jewellery production of India
White Gold
Platinum Jewellery
Paved Diamond Jewellery
Studded Jewellery
Infrastructure Development Infrastructure Development
Jewellery Manufacturing Units
Assaying and Hallmarking Centres
Gold Refinery
Diamond Park
Select Players
Diamond Park
Jewellery Retail
Luxury Products such as Watches, Brooches, Clocks
Healthcare
Basic Facts
Share of primary care in total healthcare market of Gujarat is around 75-80%Gujarat offers holistic medicinal services and cost effective treatment through various district hospitals, sub-district hospitals and PrivateS i lt H it lSpecialty HospitalsMost sought after Super–Specialties in Gujarat include Cardiology, Neuro – Surgery, Orthopedics, Infertility treatment, joint replacementand eye surgeriesGovernment striving towards making the state a global healthcare destination
Select PlayersInvestment Opportunities
Integrated Health-CityHi-tech MRI/CT scan FacilitiesChain of Primary Public/Community
y
CentresHospital Management on Rehabilitate, Operate and Transfer (ROT) basisClinical Research & Trials
Knowledge Sector
Basic Facts
1,405 higher education institutions/colleges affiliated to various universities in the StateOver 7 million students enrolled in different higher education courses
ll dit d b NAAC t th d f
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274 colleges accredited by NAAC at the end of 2009Gunotsav – Quality improvement program for schoolsKanya Kelavani Rath Yatra & Shala Praveshotsav – Children (particularly girl child) enrollmentprogram
Opportunities for PPP
Public Private Partnerships in educationPPPs for Skill development institutionsPPPs for degree and diploma engineeringPPPs for degree and diploma engineeringcollagesPPPs in school education
Creation of a Knowledge cityPrivate universities under Private Universities Act20092009
Mines and Minerals
Basic Facts
The mineral and quarrying industry is more than USD 2 billion and employs more than 14,000 workersHas total mineral reserves of more than 19,000 million tonnesHas strength in non-metallic minerals, which offer the best prospects for exploitation
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g , p p pHouses about 6,500 mineral-based industriesPossesses one of the highest reserves of lignite, limestone, perlite and clay deposits in IndiaThe only producer of agate and chalk in the country
Investment Opportunities
LignitePower plant, lignite chemicals (oil drilling)Underground coal gasification
BauxiteGMDC coming up with new projects with aGMDC coming up with new projects with arequired investment of Rs. 4,000 croreBauxite based refractory
Limestone/Cement industry22 million tonne capacity to be added
OthersOthersSilica sand based glass industryZinc and copper extraction projectsMarble quarrying & processingLamellar china clay production
Oil and Gas
Basic Facts
Contributes 53% and 31% to Indian Crude Oil and Natural Gas production respectivelyOnly state in India with a 2,200 km integrated gas grid that is operated on an openaccess common carrier principle
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access, common carrier principleIt has the highest number of Oil and Gas fields in India (84 out of 219). It has 167 wellswith a metreage of 0.3 millionPetroleum products constitute 33% of Gujarat’s industrial outputMoUs worth Rs. 110,347 crore signed in the O&G sector, in the previous Vibrant GujaratSummitsSummits
Investment Opportunities
Oil & Gas refiningOil & Gas refiningGas distribution – Gujarat is thefirst state to have a gas grid. Citygas distribution projects areawaiting investmentsInvestments in PCPIR areInvestments in PCPIR areincentivized
Pharmaceutical and Biotechnology
Basic FactsContributes 35% to the overall Indian pharma outputHome to 40% Contract Research Organizations (CRO) in the country22% of India’s pharma exportsEmploys around 63 000 people in the state
Investment Opportunities
Manufacturing Employs around 63,000 people in the stateKnown as the hub of Indian pharmaceutical industry with over 5,400 manufacturing licenses.The landscape of Gujarat Biotech industry, consist of more than 50 Biotechnology companies and66 support organizationsThe present annual turnover in biotechnology in Gujarat has been around USD 150 - 175 million(Rs 700 crore)
Manufacturing API & Formulations Medical Equipment Pharmaceutical MachineryHealthcare ProductsVaccines, Bio-pharma and (Rs. 700 crore) , ptherapeuticsBT seeds and crops
ServicesContract researchContract manufacturing
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gDiagnostics Pharmaceutical RetailStem cell bankingInfrastructure
R&DClinical researchGenetic engineeringDrug research and development
Ports, shipbuilding and related industries
Basic FactsPorts in Gujarat handled 205 MMT of cargo traffic in 2009-10, which will increase to over 500 MMT in 2-3 years. With the doubling ofcargo handling capacity, the state will be handling more than 40% of the country’s cargo trafficState with 41 minor and intermediate ports4 pState to interlink 45 ports using integrated port management systemOne of the largest ship recycling yards in the world - at Alang Kandla port is India’s biggest cargo handler by volume First Indian State to have an LNG terminal
Investment OpportunitiesInvestment OpportunitiesGreenfield PortsSingle Buoy MooringsCapacity augmentation at existing PortsMarine Tourism Projects
S l PlSelect Players
Textiles
Basic Facts
Contributes 31% of Indian textile productionLargest producer (35%) and exporter (60%) of cotton in the country D i d i d l i h W ld d l i I di (6 %) Denim production – 3rd largest in the World and largest in India (65-70%) Over 24% to 28% of fixed investment, production value and employment of Small Scale Industries (SSI) is from textiles sector Technical Textiles is a key emerging area with over 860 units in Gujarat (as per Government of Gujarat’s survey report)
Investment OpportunitiesSelect Players
Conventional Textiles Ginning and Pressing Cotton & Synthetic based Spinning, Weaving & Processing Units, Cotton Knitwear Terry Towel / Home Furnishing
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High valued Garment Manufacturing Technical Textiles
Protective TextilesAgro TextilesGeo TextilesAutomotive TextilesHome Textiles
Infrastructure Development Cotton Integrated Textile and Apparel Park
Tourism
Basic Facts
Total tourist number for Gujarat was around 16 million tourists in 2008, compared to less than 8 million in 2004, thus growing at aCAGR of about 20%International tourists arrivals to Gujarat grew at a much higher CAGR of over 45% during the same periodAlmost 2% of tourists in Gujarat are international tourists (higher than the 1% figure for India) – moreover, the point to be observed hereis that international tourist arrivals to Gujarat is growing at a CAGR of over 45%
Investment
Media & Entertainment ProjectsFilm cities
Opportunities
Beach Tourism Projects
R t tFilm-cities Film-studiosAmusement ParksDigital Gaming Zones MultiplexesSound & Light Shows
RestaurantsDrive-in resortsFloating hotels Water sportsMaritime museums Sea Park / AquariumSound & Light Shows
Sports ComplexWater Parks
Sea Park / AquariumCruise services
Urban Development
Basic Facts
Gujarat accounts for 6% of the total geographical area of the country and around 5% of the country’s population Gujarat - “The Urbanized State of India” - 43% share of urban population as compared to 28% share of urban population in India St t t d l l t i iti th li f N Y k d N JState to develop several twin cities on the lines of New York and New JerseyState got 4 awards from Union Urban Development Ministry for implementation of JNNURM projects
Investment OpportunitiesInvestment Opportunities
Solid Waste ManagementState-wide Municipal Solid Waste Management Project12 super-clusters planned through PPP Mode to cover areas of 8Municipal Corporations & 159 MunicipalitiesMunicipal Corporations & 159 Municipalities
Energy EfficiencyBaseline data collection and pre-energy audit completed in 159Municipalities and 6 Municipal CorporationsTotal annual energy saving potential is approx. 2.3 lakh MWH
Gujarat International Finance Tec City (GIFT)j y ( )GIFT targets to tap 6-8% share of the financial services potential in IndiaCreation of about 500,000 direct and equal number of indirect jobs
Water Conservation and Efficient Use
Basic Facts
Most parts of the State comes under scarcity prone area – total fresh water availability is only 1,137 cu.m. per capita per annum, over70% of which is limited to South GujaratThe distribution pattern of rainfall in the state ranges from over 2 000 mm in the Dangs in South Gujarat to about 200 mm in KutchThe distribution pattern of rainfall in the state ranges from over 2,000 mm in the Dangs in South Gujarat to about 200 mm in KutchGujarat has long coastline and two huge gulfs – the Gulf of Cambay and the Gulf of Kutch - the entire Little Rann of Kutch andGreater Rann of Kutch are inundated with saline sea water for most of the year, deteriorating the ground water quality in adjoiningareasDomestic and industrial water demand for the year 2025 are assessed to be 2,000 million cubic meters per year
Investment Opportunities
Municipal Water Treatment PlantsIndustrial Water Treatment PlantsW t t ll ti t kWaste water collection networkMunicipal Waste Water Treatment PlantsIndustrial Waste Water Treatment PlantsRainwater HarvestingMicro-irrigation
iNDEXTbiNDEXTbINDUSTRIAL EXTENSION BUREAU (A GOVT. OF GUJARAT ORGANISATION)
SO 900 2008 C ifi d
Block No. 18, 2nd Floor, Udyog Bhavan,Sector 11, Gandhinagar, 382 017, Gujarat, INDIA
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Website: www.vibrantgujarat.com, www.indextb.com