Hon’ ble Chief Minister of Tamil Nadu welcomes NRI Investors to

Tamil Nadu – The Land of Immense Potential

Presentation on Tamil Nadu – Competitive

advantages and Investment Opportunities

by

GUIDANCE BUREAU Government of Tamil Nadu

Presentation Structure

• Fundamentals of Tamil Nadu

• Current Economic scenario

• Competitive advantage analysis

• High Growth sectors – opportunities

• Information technology

• Biotechnology

• New Initiatives

• Govt. support to Investors

• Current investment-Flows

• Why Tamil Nadu?

FUNDAMENTALS OF TAMIL NADU

3rd largest State Domestic Product (SDP) among the states

in India*

Tamil Nadu – one of few Indian states with > 6.0% growth

rate of SDP

3rd in Human Resource Development index as per Human

Development Report of Govt. of India, 2001

Well-developed manufacturing sector and highest value

addition in factory sector among the major southern states

High export intensity : 1/3 of industrial output valued @

about us $ 6.5 billion

* Estimated

Industry Profile of Tamil Nadu Traditional Strengths Tamil Nadu‟s

Share in India

Cars 21%

Heavy Commercial Vehicles 33%

Auto Components 35%

Railway Coaches 49%

Cotton Yarn 32%

Leather Tanning Capacity 70%

Software 14 %

Power Driven Pumps 50%

With Ford, Hyundai Motors & HM-Mitsubishi car Projects, Chennai emerges as Detroit of India.

Chennai produces “bicycles to battle tanks” – „B to B‟

INFRASTRUCTURE DEVELOPMENT INDEX TAMIL NADU VS. OTHER STATES

Source: CMIE Profile of Indian states

0

20

40

60

80

100

120

140

160

180

Tamil N

adu

A P

Karn

ata

ka

Guj

ara

t

Mahara

shtr

a

Kera

la

Punj

ab

All I

ndia

100

COMPETITIVE ADVANTAGES OF TAMILNADU

High Literacy rate @ 73.5%

The state has the largest intake capacity in India for

Engineering and Polytechnic education - Annual intake

capacity in engineering colleges is 75, 125 and 45,334 in

polytechnics

Computer education in schools : about 100,000 students are

trained every year. This project has become the “National

Model”

COMPETITIVE ADVANTAGES OF TAMILNADU

International digital leased lines of 64 kbps and

above

Several large private ISPs based at Chennai

Chennai – the landing point for 2 submarine cables :

13 + tbps – Bharti has commissioned its submarine

cable with a capacity of 8.4 tbps - the largest

bandwidth capacity in the world

Bandwidth is no more a barrier – statewide OFC

backbones under construction by 6 companies.

Power

• Current installed capacity: 7905 MW

• Power availability in Tamil Nadu better than other states

• No power cuts or outages

• Uninterrupted quality Power supply to industries

• Tariff rate in Tamil Nadu cheaper than most other states

• Additional generating capacity:1900 MW during 2002-07

• New Projects to be completed in 2002-03: 521 MW

Chennai

Tuticorin Colachel

Ennore * *

* *

No. of Major Ports 3 : Chennai, Tuticorin & Ennore

Chennai Port – the second largest in India

Ennore - first corporate port

Combined cargo handling capacity of 3 major Ports in Tamil

Nadu : 73 million MT – about 24% share Tamil Nadu has 14 minor ports – Of this, 7 are captive ports

Ports of Tamil Nadu

Port Development

• Development of Phase II & III and LNG

terminal at Ennore port

• Upgradation of port facilities at Cuddalore &

Nagapattinam

• Tran-shipment hub Port at Colachel on G-to-G

basis

Best Indian cities – Overall Ranking City Overall Rank

Mumbai (Bombay) 1

Chennai (Madras) 2

Chandigarh 3

Bangalore 3

Mysore 5

Pune 5

Hyderabad 7

Coimbatore 8

Source : BT Gallup Survey of Best Cities to do Business – Dec. 2001

Growth of Exports from

Tamil Nadu

Rs.

in

Ten

millions

0

4000

8000

12000

16000

20000

24000

28000

32000

1995-96 1996-97 1997-98 1998-99 1999-

2000

2000-01

30636

23937

21387 19232

17802 16142

Specific Investment opportunities

• Software & Electronics

• Hi-Tech Agro / food Processing

• Petrochemicals

• Bio-Technology & Pharma

• Roads & minor Port development

• Automotive Projects

• Development of Industrial Parks

• Tourism and Satellite Township Projects

Information Technology industry in Tamil Nadu

Competitive advantages of Chennai • Highest skilled manpower density and largest turnout of Software

engineers • Eminent Institutions like: IIT, Anna University, etc. • Chennai – rated second best in India to do Business • Property prices cheaper than other metropolises • Good city Infrastructure:

• Reputed schools - American International School • Chennai – health care capital city of India with super-specialty world-class

health care facilities • Good Public transportation facilities • Modern apartments along the beach

• International Airport with about 205 direct flights every week connecting 15 countries in Europe, South East Asia

• Excellent communication facilities: Bandwidth is no barrier • Several MNCs including Ford, Cognizant Technologies, Citi Bank,

Stanchart, ABN Amro Bank and institutions like World Bank found Chennai the best location in their Site selection studies

• Chennai rated best location in site selection studies of: » World Bank, Washington » ABN Amro Bank » Ford Business Solutions, USA » Cognizant Technologies » Alcatel » Computer Associates » Stanchart Bank and many more

Hence, all the above have made investments in Chennai • Chennai rated as the most attractive location by NASSCOM study

• Noble & Hewitt rated Chennai the Best in terms of “ growth vision and receptivity to investment”

• Chennai has one of the largest English speaking population – has multilingual training facilities in languages such as German, French, Japanese, etc.

Competitive advantages of Chennai

Our Guests……

AND MORE………

> 45,000 professionals

employed

161 5223 (Rs. Crores)

Software Exports

1996-97 2001-02

PLUS

Hardware Exports

Rs. 482 Crores In 2001-02

98-99 99-00 00-01 01-02

Growth in no. of IT companies

100

500

SELECT INDICATORS…

166

866

World class facilities – the most modern IT park of India

Built-up area 1.28 million sq.feet – Largest in India

Unlimited bandwidth and reliable connectivity

High quality supporting infrastructure

TIDEL achieved 100% occupancy in 4 months

Enthused by response, Second Information Technology Park is in the offing and feasibility & market study underway to identify sites, define infrastructure specifications.

TIDEL PARK The millennium park

Software exports from Tamil Nadu

0

1000

2000

3000

4000

5000

6000

1996-97 1997-98 1998-99 1999-

2000

2000-01 2001-02

Rs. in Crores

164.40 393.00

1246.00

1914.00

3116.00

5223.00

Software Export of Tamil Nadu Sl.No Area of Expertise 2001-02

No.of units* Export value

Rs. in crores

1 Application Software 257 2259.41

2 On Site Consultancy

Services

36 1716.71

3 System Software 33 702.02

4 IT enabled services 114 340.01

5 Web Applications 60 184.93

6 Product / Packages 15 16.84

Note : A unit may have expertise in more than one area of business

Source : Software Technology Parks of India, Chennai

Some Trends in Information Technology

% of Tamil Nadu in Indian Software export

4

6

11 11 11

14

0

2

4

6

8

10

12

14

16

1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002*

%

Biotechnology industry in Tamil Nadu

Tamil Nadu – Bio Resource endowments • With 5,000 species of flowering plants, 22,500 sq km of forest cover

and a coastline of 1,000 km, Tamil Nadu is exceptionally rich in biodiversity

• Endowed with about 30% of the total biodiversity resources of India

• Extensive coral reef systems across its southern coastline is compared tropical rainforests in their wealth of biodiversity

• Large pool of experts in various areas of Biotechnology

Tamil Nadu Biotechnology Policy

• Tamil Nadu - the investor-friendly Biotechnology policy • Establishment of Tamil Nadu Bio-technology Board under the

Chairmanship Dr. M.S. Swaminathan • Single Window facilitation for biotechnology enterprises • Creation of quarantine facilities & sanitary / phytosanitary measures as

per WTO agreement • Creation of “Emerging Technology Venture fund” • Biotech given industry status • TIDCO plans hosting of facilities for different streams of Biotechnology

Marine Biotechnology Park

Medicinal plants Biotech Park

Madurai

Women’s Biotech,

Kelambakkam

Biotech Incubator

Park, Chennai

Bioinformatics &

Genomics centre

Chennai

Bio-Valleys in Tamil Nadu

TICEL Bio Park : TIDCO-Cornell Partnership

a) The Biotech Park will have two major facilities viz. (a) Bio-Resource Centre (b) Common tenancy area

b) Bio-Resource Centre - Bio resource center will incorporate state -of- art comprehensive facilities

c) Incubator Centre Incubator center will house complete range of equipment for up-stream and down-stream process development in several segments of life sciences .

d) Green House and germ plasm centre e) Land area at Siruseri for development of manufacturing facilities in

future

Marine Biotechnology Park

The first of its kind in India

• Location : 20 Kms from Chennai

on East Coast Road

• Land : 100 Acres

• Completion : End 2003

• Project Cost : Rs.50 Crores

• Investment by

individual units : Rs.250 Crores

Automobile industry in Tamil Nadu

OEMs

HM - CARS/MUVS

TELCO - TRUCKS

OEMs.

ASHOK LEYLAND - TRUCKS

FORD - CARS

HYUNDAI - CARS

MITSUBISHI - CARS

ROYAL ENFIELD - MCYCLES

TAFE - TRACTORS

TATR-UDYOG - HCVS

TVS-SUZUKI - MCYCLES

CATERPILLAR - Earth Moving equipment

CREAVES - Tractors

HVF - Battle Tanks

ICF - Railway coaches

TI Cycles - Cycles

NORTH

EAST

WEST

Tamil Nadu

N

W E

S

INDIAN AUTOMOTIVE MAP

SOME KEY PLAYERS

OEMs.

DAEWOO - CARS

EICHER - TRACTORS

ESCORTS - TRACTORS/MCYCLES

HERO HONDA - MCYCLES

HMT - TRACTORS

HONDA - CARS

ITL - TRACTORS

LML - SCOOTERS

MARUTI - CARS/MUVS

NEW HOLLAND - TRACTORS

PTL - TRACTORS

SWARAJ MAZDA - LCVS

NR

160 VENDORS

OEMs

BAJAJ AUTO - SCOOTERS/MCYCLES/

3-WHEELERS

BAJAJ TEMPO - MUVS/TRACTORS/LCVS/3-

WHEELERS

EICHER - LCVS/TRACTORS

FIAT - CARS

GM - CARS

GREAVES - 3 WHEELERS

GTL - TRACTORS

KINETIC - SCOOTERS/MCYCLES

M & M - TRACTORS/MUVS

MERCEDES BENZ. - CARS

SKODA - CARS (AWAITED)

TELCO - TRUCKS/CARS/MUVS

WR

120 VENDORS

.

Key Players 107

Investment about Rs.36000 million ($ 800 million)

Output US $ 1.2 billion

Exports US $ 140 million

Employment about 45,000 persons (Direct)

CHENNAI - AUTO COMPONENT INDUSTRY

VITAL STATISTICS

CHENNAI COMPONENT WISE PRODUCTION CAPACITY SHARE IN INDIA (%)

Visteon – the largest component manufacturer of India located in Chennai

Above 50% share

(19 items)

Inlet and exhaust valves, valve guides, valve tappets,

Fuel pumps (petrol), oil pump assembly, thermostat,

Timing chair, water pump assembly, starter Motors,

Alternators, camshafts, oil seals, Brake linings, wiper

motors, Air brake assembly, Engines.

30% - 50%

(10 items)

Fuel pump Nozzle holders, voltage regulations, Flywheel

Magnetos, Steering gears (mechanical & power), wheel

Rims, Electric horns, Dashboard instruments

10% - 30%

(17 items)

Fuel pump Nozzle & elements, delivery valves,

crankshafts, bi-metal bearings, Fuel inj. Pumps,

Radiators, Clutch plates, clutch assembly, shock

absorbers, Automotive tyres, automotive seats.

Less than 10% 7 items

GM USA FORD USA DAIMLER CHRYSLER USA BMW GERMANY VOLVO SWEDEN NISSAN JAPAN, UK PIAGGIO ITALY NEW HOLLAND ITALY

Exports from Tamil Nadu KEY OEM CUSTOMERS

KEY ADVANTAGES

Highly-skilled and educated workforce and primarily English-speaking Managers

Quality conscious manufacturers

Low-cost manufacturing base

Partnering linkages with global supply chain

India produces 80% of auto components and exports components world wide

ADVANTAGE TAMIL NADU

Excellent Manufacturing Base :

=> High Machine Tool Capability => Improving Tooling Capability => Extremely Capable Component Industry => Most Raw Material Locally Produced

ADVANTAGE TAMIL NADU

Facts About Tamil Nadu -- Auto Component Industry

Sundaram Clayton - Deming Prize Winner in the Indian Auto Component Industry, out of the 5 in the world outside Japan.

GM Supplier of The Year Award Bagged 5 Consecutive Times By Sundaram Fastners

Ford (Chennai Plant) Exports CKDs / SKDs of Ikon From India With More Than 80% Local Content Hyundai (Chennai Plant) exports assembled cars and Components

Facts About Chennai

Has a share of 35% installed capacity in components manufacturing in India Many component suppliers have ISO 9000 and OE suppliers

The Largest Number Of ISO/QS Certified Companies :

More than 50% ISO Certified

More than 26% QS Certified VISTEON have started exporting components made in India to their various other plants around the world- Investing further to make India as a manufacturing base.

Fastest growing market for Two wheelers Award winners like :

Deming Prize Winners in the Indian Auto Component industry, out of the 5 in the world outside Japan GM Supplier of The Year Award Bagged 5 Consecutive Times By an Indian Company

About assistance from Tamil Nadu Industrial

Development Corporation (TIDCO)

TIDCO

A Govt. of Tamil Nadu Enterprise formed in 1965 A company with an Authorised share capital of

Rs.1250 million Assistance by the state government Equity Rs. 942 million Loan Rs. 373 million

TIDCO Mainly promotes industrial development in the state through

Joint Ventures with private sector participation in three

categories

Joint Sector with - 26% of Equity

Associate Sector with - 2 to 11% of Equity

Escort Sector with - 1% of Equity

A Non-Banking Financial Company registered with Reserve Bank

of India

Has mobilised deposits from public up to Rs. 2,371 million

TIDCO‟S PARTICIPATION COVERS A WIDE SPECTRUM OF PROJECTS

TIDCO has promoted several industrial ventures in allied fields such as :

CHEMICALS, ENGINEERING, LEATHER, TEXTILES, AGRI-BUSINESS, AUTOMOBILE, PHARMACEUTICALS, FOOD PROCESSING AND INFRASTRUCTURE

NOTABLE PROJECTS COMPLETED

FERTILIZERS AND CHEMICALS -

SPIC - FERTILIZERS

TPL - LINEAR ALKYL BENZENE

TEL - NITROGLYCERINE BASED COMMERCIAL EXPLOSIVES & ACCESSORIES

CORE SECTOR -

TANCEM - CEMENT

SISCOL - STEEL PLANT & ROLLING MILL

NOTABLE PROJECTS COMPLETED (contd..) FOOD-PROCESSING & PHARMACEUTICALS

SKM - EGG POWDER MALLADI - EPHEDRINE HYDROCLORIDE

R.R. MEDI PHARMA - INTRAVENOUS FLUID

TAMILNADU DADHA - PHARMACEUTICALS

( NOW SUN PHARMA) ELECTRONICS, IT & COMMUNICATIONS

TITAN INDUSTRIES - WATCHES & JEWELLERY

TTL - TELECOM CABLES & ACCESSORIES VENTURE LIGHTING - METAL HALIDE LAMP

DYNAVISION - CONSUMER ELECTRONICS

NOTABLE PROJECTS COMPLETED (Contd.) INFRASTRUCTURE TIDEL PARK - IT PARK TNRDC - DEVELOPMENT & MAINT. OF ROADS & HIGHWAYS CHENNAI TRADE - CONFERENCE, CENTRE EXHIBITION FACILITIES MAHINDRA INDL. - ECO FRIENDLY PARK INDUSTRIAL CITY

OTHERS CHESLIND TEXTILES - TEXTILES RAMBAL - AUTO COMPONENTS DCM HYUNDAI - MARINE FREIGHT CONTAINERS

PROJECTS UNDER IMPLEMENTATION

TICEL BIO PARK

• WITH TECHNICAL COLLABORATION FROM CORNELL UNIVERSITY, USA, AND CAPITAL OUTLAY @ RS.630 MILLION

HI-TECH INDUSTRIAL PARK (SEZ)

• A JOINT VENTURE OF TIDCO & INFAC GROUP, USA WITH A CAPITAL OUTLAY OF RS.7000 MILLION AT NANGUNERI, THIRUNELVELI DISTRICT

PROJECTS UNDER IMPLEMENTATION CONTD...

TANFLORA INFRASTRUCTURE PARK • A FLORICULTURE INFRASTRUCTURE PARK WITH EXPORT

THRUST AT A CAPITAL OUTLAY OF RS.250 MILLION

• BEING DEVELOPED ON THE LINES OF AGREXCO OF ISRAEL, IN

DHARMAPURI DISTRICT

NAGARJUNA OIL CORPORATION

• A PETROLEUM REFINERY WITH 6 MILLION TONNES PER YEAR

CRUDE THROUGHPUT CAPACITY WITH A CAPITAL OUTLAY OF

RS.34,800 MILLION

• PROMOTED AS A JOINT VENTURE OF TIDCO & NAGARJUNA

GROUP

PROJECTS IN CONCEPT STAGE

SECOND INFORMATION TECHNOLOGY PARK

MARINE BIOTECHNOLOGY PARK

RUBBER INDUSTRIES PARK

XECHEM INC., (ANTI CANCER DRUGS)

WINERY PROJECT

About Industrial Parks in Tamil Nadu

SIPCOT Industrial Parks Irungattukottai Industrial Park Sriperumbudur Industrial Park Gummidipoondi Industrial Park EPIP at Gummidipoondi Cuddalore Industrial Park I & II Pudukottai Industrial Complex Hosur Industrial Complex - I & II Manamadurai Industrial Complex Cheyyar Industrial Park Tuticorin Industrial Park Ranipet Industrial Park Nilakottai Agro Park Gangaikondan Growth centre Perundurai Industrial Park Bargur Industrial park Oragadam Industrial park Siruseri IT Park

TIDCO Industrial Parks

Ennore Petrochem Park

Hi-Tech industrial Park & SEZ,

TANFLORA – Floriculture park

TIDCO – Mahindra Industrial Park

Rubber Park

Garments Park

TIDEL Park

Bio-Tech park, Bio-Valleys

Bio-Informatics Park

SIPCOT INFORMATION TECHNOLOGY PARK - SIRUSERI

• Exclusive for IT industry

• Spread over 1000 acres

• Planned as a self contained city

• Preferred Destination of IT Investments

SIPCOT IT PARK- SIRUSERI

• LOCATION : 24 KM S FROM CHENNAI ON OLD MAHABALIPURAM ROAD

• AIRPORT : INTERNATIONAL AIR PORT AT 20 KMS FROM SIRUSERI

• SEAPORT : ALL WEATHER PORT AT 30 KM AT CHENNAI

• RAILWAY STATION : 30 KMS AT CHENNAI CONNECTED

THROUGH OUT THE COUNTRY

Irungattukkottai Industrial Park Location Sriperumpudur Taluk,

Kancheepuram Dist. 35 Km. From

Chennai

Area & Cost 1843 Acres & Rs.12 lakhs per acre

Connectivity Well connected by National Highway

to Chennai city. Chennai Domestic /

International Airport, Seaport &

Railway station located at a distance

of 35 Km from the park

Water supply 5 Millions Gallons per day through

pipeline

Power supply Separate substation provided for

uninterrupted power supply

Telephone Separate Telephone Exchange is

provided. Connections are available

on demand

Major Units

located

Hyundai Motors, Matsushita, Lumax

Samlip, Pos Hyundai, Iljin, JBM

Sangwoo & Mando Brake Systems

100 – 200 acres can be allotted immediately

in this Industrial Park

Credentials

Mahindra & Mahindra Ltd.

Promoters

Tamil Nadu Industrial Development Corporation Ltd.

Infrastructure Leasing & Financial Service Ltd.

Design : JTC International, Singapore

Landscape : Belt Collins, Singapore

FDI - State-wise Position (August 2002)

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000 Rs. in crores

Tamil Nadu – the Third largest recipient of FDI Source: SIA, Govt. of India

What Govt. of Tamil Nadu offers?

• Land in Industrial Parks

• Single Window facility to get all approvals

• Good Infrastructure support & Power supply

• Attractive Incentives Package

Single window facilitation • Govt. of Tamil Nadu offers an effective Single window

facility to take care of all clearances & approvals as well as infrastructure support like power, water, land allotment, etc.

• Common application form for all approvals and infrastructure support

• In-principle clearance within 2 weeks to enable the company to go ahead with implementation

• Guidance Bureau designated as Single Window documentation centre by Govt. of Tamil Nadu

Contact addresses Mr.K.Skandan IAS

Secretary to Government

Industries Department

Govt. of Tamil Nadu

Fort St.George Chennai 600 009

Phone: (044) – 25671383

Fax: (044) - 25670822

Mr.Arun Ramanathan IAS

Chairman & Managing Director

T I D C O

19-A, Rukmani Lakshmipathy salai, Egmore

Chennai-600 008

Phone: (044) – 2855 3710

Fax: (044) – 28553729

Mr.T.N.Ramanathan IAS

Director

GUIDANCE BUREAU

19-A, Rukmani Lakshmipathy salai, Egmore

Chennai-600 008

Phone: (044) – 2855 3118

Fax: (044) - 28588364

Mr.M.Velmurugan IES

Additional Director

GUIDANCE BUREAU

19-A, Rukmani Lakshmipathy salai, Egmore

Chennai-600 008

Phone: (044) – 2858 8364

Fax: (044) - 28588364

E-mail: mvel@vsnl.com

Thank you

Please visit our websites:

www.tidco.com www.sipcot.com www.elcot.com www.tn.gov.in

www.itparkchennai.com