Gujarat chem tech presentation 23 feb 2011

23rd February 2011

Chemtech & Pharma World Expo, Mumbai

Presentation byIndustries & Mines Department, Government of Gujarat

Government of Gujarat

Gujarat Chemical, Pharma & Biotech Sector

Chemtech & Pharma World Expo 2011

Structure of the Presentation

Investment Climate in Gujarat1

Gujarat Chemical & Petrochemical Sector2

Petroleum, Chemical and Petrochemical Investment Region 3

Gujarat Pharma, Biotech & CRO4

Gujarat - Support Infrastructure

Vibrant Gujarat - The Global Business Hub

5

6

Picture Gallery…..7


Investment Climate in Gujarat

Fast Growing Economy

Strategic Location

Land of Entrepreneurs

Enduring & Strong Economy

Stable Regulatory Mechanism

World Class Infrastructure

24X7 Power Supply

High-level of Urbanization

Quality Workforce

Proactive & Policy-driven Governance

► With 16% share in industrial production, Gujarat has only0.29%* of mandays lost in the country due to labor trouble

► The state is a pioneer in Public Private Partnership in Power,Healthcare, Transport (Ports, Road, Rail and Pipelines), IndustrialParks and Urban Infrastructure

Leading Companies in Gujarat – Chemicals, Pharma, Biotech

* Socio Economic Review of Gujarat 2009-10; Labour Bureau, GOI


Delhi Mumbai Industrial Corridor (DMIC)

► Being laid between Delhi and Mumbai, DFC is a new

rail transportation system with high axel, multi

modal and computerized features

► 38% (564 km) of the 1500 km length of DFC will pass

through Gujarat

► DMIC area to be developed as ‘Global Manufacturing

& Trading Hub’ in two phases (6 nodes) – supported by

world class infrastructure & enabling policy framework

► Expected to triple industrial output in five years

► The influence area covers

§ 62% of total area of Gujarat (18 out of 26

districts) within the influence area

§ Investment potential for Gujarat is US$ 30 bn

(1/3 of total investment potential in DMIC)

A high impact industrial area within 150 km distance on both sides of the Dedicated Freight Corridor (DFC), with an investment potential of US$ 90 billion


Palanpur Mehsana Industrial Area

Ahmedabad DholeraInvestment Region

Vadodara-Ankleshwar Industrial Area

Bharuch-Dahej Investment Region

Surat Navsari Industrial Area

Valsad Umbergaon

Industrial Area

Proposed Logistic Park

DMIC: Proposed Modules in Gujarat

Dahej PCPIR


Gujarat’s Chemical Sector

► The chemical sector accounts for 28% of Gujarat’s net

value added in factory sector .

► The State accounts for 51% of India’s production of

major chemicals; with revenues at over US$ 3 bn.

► Gujarat contributes 15% of national chemical exports.

► 30% of the state’s fixed capital investment in

manufacture is in chemical sector.

► Manufacture of chemicals and chemical products

contributes to 1/5 of the total employment in industry.

51%

8%

8%

6%

4%

23%

Gujarat Maharashtra

Uttar Pradesh Tamil Nadu

Punjab Other States

State-wise Production of Major Chemicals

Source: Gujarat Socio Economic Review 2009-10Ministry of Chemicals & Petrochemicals Report FY 07


Gujarat’s Petrochemical Sector

► The well diversified chemical industry of Gujarat

has complete portfolio of chemical products,

including petrochemicals and downstream,

pharmaceuticals, dyes and intermediates.

► Gujarat accounts for 62% of India’s production of

major petrochemicals.

► The state has 3 cracker complexes at Hazira,

Vadodara and Dahej. Another cracker is being built

at Dahej by ONGC Petro additions Ltd.

► Gujarat accounts for a refining capacity of 86 MMT

out of the country’s capacity of 177 MMT as on

1.4.2009, i.e. 48%.

62%15%

10%

13%

Gujarat Maharashtra

West Bengal Other States

State-wise Production of Petrochemicals

Source: Performance Of Chemical & Petrochemical Industry at a Glance (2001-2007), MOC&F


Gujarat – The Hub for Chemical Industry

Gujarat’s Contribution to IndiaLargest Chemical Complexes of the world exist In Gujarat

Rich in Raw Materials

► Large production of basic chemicals - caustic soda, caustic potash and chloromethane► Gujarat accounts for 70% of the country’s production of polymers, PE/PP/PVC.► Largest supplier of bio fertilizers, seeds, urea and other fertilizers.

Source: Gujarat Socio Economic Review 2009-10, Plastic Association Report

20%

37%

38%

41%

50%

50%

56%

85%

100%

Nitrogenous Fertilizers

Methanol

Phosphatic Fertilizers

Caustic Soda

Acetic Acid

Ethylene

Polymers

Salt

Soda Ash


Gujarat has the entire….

Chemical Industry Value Chain

Raw Materials

Intermediate ‘Building Block’ Synthesis

FunctionalChemicalSynthesis

Value Addition&

Processing

Finished Intermediate By Products

Storage, Packaging & Distribution

Business Support Services


Exploration and Development

Hydrocarbon Production

Refining & Blending Shipping Storage Distribution Market

Upstream Processing


Petrochemical Industry Value Chain


Hydrocarbon Feed stocks/ Raw Materials

Intermediate ‘Building Block’ Synthesis

`Natural Gas`Crude Oil

FunctionalChemicalSynthesis

Value Addition&

Processing

Finished Consumer Products

Downstream Processing

Cracking

Petrochemical Products

FiberIntermediatesPolymers Rubber

Chemicals Plastics


Petrochemical Industry Value Chain


Extraction of Ethane (C2), Propane (C3) and Butane (C4) from LNG

Feed LNG supplied by Petronet LNG Ltd.

► ONGC Petro additions Limited (OPaL) is building a dual feed cracker in Dahej SEZ.

► OPaL will source 973,000 MTPA feedstock (C2, C3 & C4 cut) from ONGC’s extraction plant and 1.5 MMTPA naphtha from ONGC’s Hazira and Uran operations.

► OPaL’s basic polymer units will produce LLDPE, HDPE, Polypropylene and SBR based on the ethylene and propylene generated from the cracker.

Importing Rich LNG in cryogenic stage

C2-C3-C4 Extraction

Lean LNG sent back to Petronet LNG Ltd.

Lean LNG

OPaL to be the first in the world to extract C2+ products from rich LNG in cryogenic stage

C2-C3-C4 Extraction Project of

ONGC

Downstream Petrochemical Processing inDahej SEZ


PCPIR: Unique Selling Proposition

Gujarat Petroleum, Chemical and Petrochemical Investment Region (PCPIR)PCPIR is a specifically delineated Investment

Region planned for the establishment of production

facilities for petroleum, chemicals and petrochemicals

Well-defined Infrastructure

Quality Services

Legal Framework

Abundance of Natural Resources

Export Promotion Measures

Petroleum Chemical and Petrochemical Investment Region

Location Dahej in Bharuch district, South Gujarat

Area 453 sq. km.

Focus Sector Chemical & Petrochemical

Investment Already Made & Committed Rs.90,000 crore (US$ 20.5 bn)

Infrastructure Development Rs.3,200 crore (US$ 727 mn)

Anchor Tenant ONGC Petro additions Limited (OPaL)

Location


PCPIR Advantage

► Concentration of Petroleum, Chemical and Petrochemical estates around PCPIR

► Rich natural resources and feedstock

► All infrastructure - road, rail, port, power, gas, water - in place, with planned up-gradation

► Chemical Port and Storage Facility

► LNG terminal

► PCPIR specific infrastructure - effluent disposal pipelines, solid waste disposal sites

► Quality Work Force, Peaceful Labour


► Existing industrial units have created 13,220

direct & 46,270 indirect employment.

► Additional 30,000 direct & 90,000 indirect jobs

will be created in the upcoming units

► Thousands of persons employed in

construction activities of industrial units,

townships, infrastructural works etc.

► The economic and industrial activities in

PCPIR also generate large scale self-

employment opportunities.

PCPIR – Leading Companies

Employment Generation


Name Area & Status

Jubilant Infrastructure Ltd., Bharuch 160 ha., Notified

Jayant Oil & Derivatives Ltd., Vilayat,, Bharuch

118 ha., Formally Approved

Gujarat Hydrocarbon and Energy SEZ, Bharuch

450 ha., In-principle Approved

Source: Gujarat Industrial Development Corporation.

3 SEZs

14 Industrial Estates8 Chemical Product Clusters

Location Area(in hectare)

Odhav, Ahmedabad 128

Naroda, Ahmedabad 363

Vatwa, Ahmedabad 534

Nandesari, Vadodara 272

P.C.C. , Vadodara 666

Dahej, Bharuch 6131

Panoli, Bharuch 1037

Jhagadia, Bharuch 1606

Ankleshwar, Bharuch 1612

Vilayat, Bharuh 1000

Pandesara, Surat 218

Sachin, Choriyasi, Surat 771

Sarigam & Umergam, Valsad 395

Vapi, Valsad 1164

Location

Jamnagar

Mehsana

Anand

Vadodara

Bharuch

Ahmedabad

Bhavanagar

Valsad

Chemicals / Petrochemicals Locations


Technical Education InfrastructureChemical Sector

► Major academic institutions offering chemical engineering course:

► L.D. College of Engg., Ahmedabad

► Nirma University of Science & Technology, Ahmedabad

► Government Engg. College, Valsad

► 39 engineering colleges offer course in Chemical Engineering.

► 49 Polytechnics offer courses in Chemical sector. Prominent ones:

► Govt. Polytechnic, Rajkot

► K.J. Polytechnic, Bharuch

► Govt. Polytechnic, Valsad

Locations of Major Chemical Educational Institutions

Ahmedabad

Surat

Gandhinagar

Bhavnagar

Rajkot

Valsad

Bharuch

VadhvanNadiad

Vadodara


Gujarat : Pharma Sector

GujaratPharma

Industry

Value proposition

RegulatoryEnablers

Facts

• Established chemical industry

• Backward linkages

• Well-developed medical equipment

industry

• Well-developed IT capabilities

• Well-developed pharma machinery

industry and pharma packaging

• Large number of CROs

• Academic and research institutes

• 42% of India’s pharma turnover

• 22% of India’s pharma exports

• 5,424 manufacturing licensees

• Employs 55,000 people

• Large domestic market

• Cost-competitive research base

• Large and skilled workforce

• Skills in process chemistry

• Presence of pharma clusters

and Special Economic Zones

• Product patent regime

• 310 WHO compliant

manufacturing units

• GMP compliance of

international standards

• Government-supported

incentives and subsidies

► Manufacturer of maximum number of dosages in India

► Manufactures 80% of IV sets produced in India

Key Features


Clinical Development

Education / ResearchInstitutes

Research&

Development

Manufacturing

Marketing & Exports

Contract Research Organisations

§ Nirma Institute of Pharmacy§ C U Shah College of Pharmacy & Research§ S R Patel College of Pharma Education & Research§ B K Modi Government Pharmacy College

§ Zydus Cadila Healthcare § Claris Lifesciences§ Cadila Pharmaceuticals § Intas Pharmaceutical § Sun Pharma

§ Lambda Therapeutics§Quintiles§ Synchron§ B A Research

§ Torrent Pharmaceuticals§ Dishman Pharmaceuticals§ Abott Laboratories§Wyeth§ Jubilant Organosys

Research & Development

Design ofMolecule

ResearchBiology

Pre-clinicalDevelopment

ClinicalDevelopment

Phase I/II/III

Phase IVTrials

Manufacturing Sales&

MarketingAPI Formulation Packaging

Pharma Industry Value Chain


Biotechnology - Industry Value Chain

BasicResearch

Drug Discovery

Integration &Product Development

Manufacturing TransportationLogistics

Marketing &Sales

Services

Business Areas

Sectors

Presence across value chain

R &

D

Man

ufac

turin

g

Mar

ketin

g

Ser

vice

s

Agr

icul

ture

Indu

stria

l

Mar

ine

Bio

info

rmat

ics

Pha

rmac

eutic

al

ResearchAreas

► Clinical Research

► Industrial Testing

► Sea Water, Marine Algae

► Environmental

► Agriculture

► Medicinal & Aromatic Plants

► Blood Collection & Testing

► Healthcare

To support the value chain, the State has educational infrastructure across all streams to provide trained manpower


Ahmedabad Clusterü APIü Finished dosages ü Biologicalsü Contract manufacturing

Ankleshwar Clusterü APIü Formulationsü Vaccines

Vadodara Clusterü Finished Dosagesü Biogenerics

Bharuch and Vapi/Valsad Clusterü Finished Dosagesü API

Source: KPMG report on Gujarat Pharma Industry

PHARMEZ (Zydus Cadila)

PHAEZ (Cadila Pharma)

Dishman PHARMA SEZ

J B Chemicals SEZ

Savli Biotech SEZ

Pharma & Biotech Clusters


Gujarat boasts of one of the oldest pharmacy colleges, L.M. College of Pharmacy, established in 1947 providing Diploma, Bachelor and Masters in Pharmacy

Education & Research InstitutesPharma & Biotech

► National Research Centre for Medicinal & Aromatics Plants

► National Dairy Development Board

► Gujarat State Fertilizers Corporation

► Sun Pharma Research Centre

► MS University of Vadodara

► Anand Agriculture University

► Genome Research Centre

► Sardar Patel University, VallabhVidhyanagar

► Navsari Agriculture University

► NIPER

► Gujarat Cancer Research Institute

► Directorate of Forensic Science

► B V Patel PERD Centre

► Zydus Research Centre

► North Gujarat University

► Department of Biotech, Gujarat University

► Nirma Institute of Pharmacy

► CP College of Agriculture

► Indian Institute of Advanced Research, Gandhinagar

► Bioinformatics Institute of India, Ahmedabad Study Centre ► National Research Centre for

Groundnut

► Central Salt and Marine Chemicals Research Institute

► Department of Life Science, Bhavnagar University

► Junagarh Agriculture University

► Department of Bio Science, Saurashtra University


Key Players in GujaratPharma & Biotech


► Gujarat is the preferred destination for off-shoring clinical research activities.

► Gujarat has 40% of CROs in the country.

► Opportunities exist primarily in Phase II to IV trials and BA/BE studies for generic drugs by pharmaceutical companies across the globe

► Gujarat provides a large pool of patients and hospitals conducting clinical research at economical cost

► A strong base of ancillary services such as bio-informatics and clinical data management, facilitating R&D and other high-end activities.

► Major transnational CRO - Quintiles - located in Ahmedabad

Contract Research Organizations (CROs)

CRO : Major Players in Gujarat


Water Management Measures

Enhancing Storage

► Dams and Reservoirs

► Groundwater /Sub-surface Storage

EfficientSupply

► Preventing Loss During T&D

► Maintenance of Existing Infrastructure

► Competitive Price

Reducing Usage

► Public Awareness

► Technology

►Water Desalination

►Recycling, Treatment & Reuse

►Conveyance through Pipelines

►Water Purification

Water Management

MajorFuture

Potential


Support Infrastructure: Ports

► 23% (1600 km) of India’s coastline

► 41 major and minor ports, 2 Container terminals & 2 LNG terminals

► In 2007-08, Gujarat ports handled 30% of total cargo handled by Indian ports

► Gujarat aims to capture 3/4 of the northwest hinterland traffic by 2020, from the present 46%.

► Major commodities handled at Gujarat ports

► Crude Oil & POL 48%► Cement & Coal 8.5% each► Foodgrains, Edible Oils, Timber and

Steel Pipes.

Natural Gateway to the rich land-locked Northern and Central hinterland

Source : Blueprint for Infrastructure in Gujarat (BIG 2020)

Nargol

Magdalla

Dahej

Dholera

Bhavnagar

Pipavav

Chhara

Porbandar

Okha SikkaBedi

Navlakhi

Kandla

Mandvi

Kacchigadh

Khambhat

Jafrabad

Mundra

Veraval Hazira

Vansi Borsi

Mahuva

GMB PortsPrivate Sector Ports

Major Port


Power Demand in Gujarat (in MW)

10525

11998

14181

17168

20545

9561

(3,209)(4,565)

(5,252)(5,811)

(1,088)1,380

2007 2008 2009 2010 2011 2012

Capacity RequiredCapacity Installed

1537215777

1656317390

1825619165

Support Infrastructure: Power

Source : Energy & Petrochemicals Department, Government of Gujarat

► Gujarat to become a power surplus state by 2012 assuring high quality power supply

► Gujarat has installed capacity of 17,960 MW, including captive generation of 5,106 MW. 5,142 MW is under construction.

► Renewable energy to be the next big focus:

► Current installed capacity of wind power is 1625 MW. To reach 6225 MW by 2020.

► 500 MW of solar power by 2015

► All the 18000 villages of Gujarat have 24 hour power supply


Support Infrastructure: Water

Uneven water distribution

addressed through inter–

basin water transfer

Narmada Canal 458 km

Region having perennial water sources

Bulk lines completed

Bulk lines in progress

Bulk lines to be taken up

The only State to have inter linkages across rivers (> 20 rivers are interlinked)


Support Infrastructure: Gas

► Only state in India with Integrated

State Wide Gas Grid.

► Transmission network of 3300 kms

► Accounts for 32% gas consumption in

the country

► Only state in the country to have

LNG terminals (at Dahej & Hazira)

► State owned company, Gujarat State

Petroleum Corporation, owns rich

gas reserves in KG Basin

Source : Gujarat State Petroleum Corporation (GSPC)


Effluent Treatment§ 25 Common Effluent Treatment Plants

§ 6 Treated Effluent Conveyance Pipelines

§ 6 Hazardous Solid Waste Disposal Sites

§ 4 Incinerators for Hazardous Industrial Waste

Clean Development Mechanism§ Compressed Natural Gas (CNG) initiative to convert

all buses and auto rickshaws into CNG Vehicles

§ Solid waste reuse, composting and waste-to-energy

programme, making Gujarat eligible for carbon credit

Gujarat is India’s 1st State to enter into an agreement with World Bank for Carbon Trading

Support Infrastructure: Environment

► Established Gujarat Cleaner Production Centre for promotion of Cleaner Production / Clean Technology, under technical guidance of UNIDO

► MOU signed between GOG, DMICDC and Japanese Companies for developing Smart Cities & Eco Townships in Dahej and Changodar

► Under Industrial Policy 2009, Gujarat provides financial assistance for implementation of CP/CT tools


Vibrant Gujarat


66,068 106,161

461,835

1,237,571

2,083,089

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2003 2005 2007 2009 2011

Proposed Investment Proposed Employment

Vibrant Gujarat

Empl

oym

ent

Inve

stm

ent i

n `c

rore

Mahatma Mandir, Gandhinagar Summary of Investment & Employment


Vibrant Gujarat Chemical & Petrochemical – MOU Achievements

No.

of P

roje

cts

Inve

stm

ent i

n `c

rore

Number of ProjectsSummary of Investment & No. of Projects

Investment (in ` crore)

18 15 52 225

16,740

3,728

13,412

43,695

98,098

0

50

100

150

200

250

0

20,000

40,000

60,000

80,000

100,000

120,000

2003 2005 2007 2009 2011

Investment No. of Projects

* Inclusive of Pharma & Biotech

*

22% 20%38%

2%

20%

11%27%

35%

25%

67%53%

27%

53%

0%

20%

40%

60%

80%

100%

2003 2005 2007 2009

16% 7%17%

79%

16%47%

68%

19%

68%46%

15%2%

0%

20%

40%

60%

80%

100%

2003 2005 2007 2009


Vibrant Gujarat Pharma & Biotech – MOU Achievements

No.

of P

roje

cts

Inve

stm

ent i

n `c

rore

Summary of Investment & No. of Projects

1

40 1,8975,568

15,484

0

20

40

60

80

100

120

140

160

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2005 2007 2009 2011

Investment No. of Projects8%

23%

80%

65%

100%

12% 11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2007 2009

Investment (in ` crore)

13%2%

18%

57% 48%

100%

30% 32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2007 2009

Number of Projects

30 146

Thank You

Industrial Extension Bureau(A Govt. of Gujarat Organization)2nd Floor, Block No.18Udyog Bhavan, Sector 11Gandhinagar 382 017, Gujarat, IndiaPhone : +91 79 23256009, 23250492/93Fax : +91 79 [email protected]

Gujarat Industrial Development Corporation (A Govt. of Gujarat Undertaking)2nd Floor, Block No.4Udyog Bhavan, Sector 11Gandhinagar 382 017, Gujarat, IndiaPhone: +91 79 23250636/37Fax: +91 79 [email protected]

mailto:[email protected]

http://www.indextb.com

http://www.vibrantgujarat.com

mailto:[email protected]

http://www.gidc.gov.in

Gujarat chem tech presentation 23 feb 2011

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