TOP 5 BUSINESS HUBS IN INDIA

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BUSINESS HUBS ????

The Business Hub is a purpose built facility that can offer an organization a wide range of support services, all of which are specifically designed to help , sustain and grow the business smoothly .

STEEL HUB -INDIA

Outline

Introduction and applications.Major Industries.Steel Hub in India.Challenges & OpportunitiesRole of Government Future Growth

Introduction to steel

 Steel - carbon + elements (Ni, Cr, & Tn) Mild steel ~ 0.25% C Medium carbon steel ~ 0.25% to 0.45% High carbon steel ~0.45% to 1.50%

Heat treatment- Cooling a red-hot tool steel rapidly - harder and more brittle else softer.

It is crucial to the development of modern economy and is considered to be the backbone of human civilization.

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More than 3500 different varieties of steel are available in the steel industry of India.

Two broad categories (APPLICATIONS)Flat Products - Flat products include plates and hot rolled

sheets such as coils and sheets. Flat products are derived from slabs. One of the major uses of steel plates is in ship

building.Long Products - Long products include bars, rods, wires, ropes and piers. These are called long products due to their

shapes. Long products are made from billets and blooms. Long products are mostly used in housing and construction

and also in rail tracks.

Major steel Companies

Tata Iron & Steel Company or Tisco)- Jamshedpur (Jharkhand).

Steel Authority of India Limited (SAIL).Bhushan Power & Steel Ltd.Jindal Steel & Power Limited (JSPL).Essar Steel Limited

Industry Statistics

Steel production in India

- crude steel increased 1.5 % to 7.4 % in recent years.

-Technological changes and modernization are taking place in both public and private sector integrated steel plants in India.

- Steel continues to have a stronghold in traditional sectors such as construction, housing and ground transportation, special steels are increasingly used in engineering industries such as power generation, petrochemicals and fertilizers.

Why Jamshedpur??

Jamshedpur is the best known symbol of India's industrial growth

Iron ore mining - integral part of steel

Iron ore units located in Noamundi, Joda and Katamati in the states of Jharkhand and Orissa. Tata Steel Limited also has manganese mines and dolomite quarries in Orissa, located around from Jamshedpur, home to the Steel Company's manufacturing facility. The Steel Company's iron ore units produce various grades of high quality iron ore including rich blue dust ore. Operations at the mines, including services are managed by Integrated Management Systems.

Impact of urbanization

Steel consumption increases with India's rapid urbanization and key to this growth is the ready supply of raw materials. Cost of producing steel in India increase by 60 % leading to an increasing concern by the country's steelmakers. Rising steel prices have also become a major concern for the government as steel and steel products contribute 21% to inflation.

India currently imports over 20 million tonnes of met coal, 70 per cent of its coking coal requirement. With this trend set to increase over the coming years to feed the growing appetite for steel, where will this much needed commodity come from and at what price? With prices for coking coal increasing 210% this year, driven by high global demand and a tightening supply market, long term supply contracts to secure a continuous supply of good quality coal is key for steelmakers.

Challenges Technologically, the main hurdles before Indian steel industry

are the cost of power and non availability of metallurgical coke.

Lack of expenditure in research and development. High level taxation. Indian steel makers also lacked in international

competitiveness on determinants like product quality, product design, on-time delivery, post sales service, distribution network, managerial initiatives, research and development, information technology.

Poor quality of basic infrastructure like road, port etc Systemic Deficiencies includes.. High Cost of Capital. Labour Productivity. High Cost of Basic Inputs and Services

Opportunities

Enormous scope for increasing consumption of steel in almost all sectors in India.

India has rich mineral resources. It has abundance of iron ore, coal and many other raw materials required for iron and steel making.

Third largest pool of technical manpower, next to United States and the erstwhile USSR, capable of understanding and assimilating new technologies.

Role of the Government

Providing linkage for raw materials, rail movement clearance etc. for new plants and expansion of existing ones.

Facilitating movement of raw materials other than coal through finalization of wagon requirements and ensure an un-interrupted supply of raw materials to the producers.

Interaction with All India Financial Institutions to expedite clearance of projects.

Regular interactions with entrepreneurs proposing to set up new ventures, to review the progress of implementation and assess problems faced.

Identification of infrastructural and related facilities required by steel industry.

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State Governments to provide power at reduced/ concessional tariffs especially to mini steel plants .

Similarly, the freight rates adopted by the Railways have been rationalized after inter action with the Railway Board and freight cost on raw material transportation for steel producers is reduced.

Future Growth

Steel production will double to 120 billion tonnes in 2011 will become 280 billion tonnes by 2015.

Energy savings potentials.Environment friendly production- Greenfields

SECOND HUB

GREATER NOIDA

NORTH

Greater Noida , Uttar pradeshSTATE CAPITAL : LUCKNOWNEAREST AIRPORT : DELHI , 50 KM.NEAREST SEAPORT : KANDLA , 1150 KMCONNECTED BY : ROAD , RAIL AND

AIRMAJOR INDUSTRIES: CONSUMER

ELECTRONICS AND AUTOMOBILE

CONTD…

MAJOR UNITS : LG ELECTRONICS INDIA , MOSER BAER , YAMAHA , NEW HOLLAND TRACTORS AND HONDA SIEL CARS INDIA , SHRIRAM HONDA POWER EQUIPMENTS , VIDEOCON INTERNATIONAL

WHY NOIDA ?

Ajay sapra , General manager (corporate export – import) , LG electronics india says

“ Its proximity to delhi , smooth roads connectivity , continuous water supply and easy access to three important markets (northern , eastern and central ) makes noida attractive to many large companies”

Fourth india largest IT-BPO destination in India

8.6% (usd 3.5 bn)

91.40%

Indian IT-BPO exports industry revenue share,

Noida

NOIDAREST OF INDIA

TOP INDIAN IT-BPO

DESTINATIONSBANGALORE

MUMBAI/PUNEHYDERABAD

NOIDACHENNAI

Key highlights

TOTAL NUMBER OF COMPANIES : ~ 400

An attractive destination for companies across a range of areas i.e traditional area(eg core sectors such as automotive) to high end IT development

Most of the top 20 IT-BPO companies have centre in Noida with MNCs forming a major portion

Services providing ranges from integrated services to niche services

HIGHLIGHTS

Noida is considering one of the best location in india to start operation for both Indian and MNCs companies.

Some factors driving this choice:- Availability of “quality-cum-cost advantage”

- Strong engineering talent with English language skills

Contd…

- Companies focuses on activities ranging from EDA tools, verification , chip design ,

application and methodologies to consulting and design services and customer support

- Minimized turnaround time for product development

- Indian domestic market is growing fast and the demand for electronic equipment is expected to reach USD363 billion in 2015 from

USD 2.8 billion in 2005.

Contd…

- Cost effectiveness is the main reason for start ups and SMEs to set up shops in noida

- The presence of incubation centers and the support provided by STPI to start- ups and SSMEs makes noida a favourite location

- upport garnered from established players in terms of mentoring and other support

- Availability of world –class training - institutions makes it a hub for student in

north india

Contd…

- Good telecom / broadband infrastructure

- Economical rentals compared to delhi and gurgoan.

Challenges

Rely on migrant workforce because of non availability of skilled labour

Real estate prices are also a cause for concern as the influx of industries has pushed up demand for real estate , making it expensive for industries to expand

Imperatives for government of Uttar pradesh

Address key infrastructure challenges i.e. availability of power supply, security, water supply and hotel

Encourage development of a large pool of qualified workforce

Create cluster of learning and innovation ensuring integration between stake-holders.

Provide visible and consistent political support

for attracting manufacturing and IT companies

PUNE as a Business hub

WestPUNE BELT , MAHARASTRASTATE CAPITAL : MUMBAINEAREST AIRPORT : PUNE , 50 KMNEAREST SEAPORT : MUMBAI , 170 KMCONNECTED BY : ROAD AND AIRMAJOR INDUSTRIES: AUTOMOBILES AND ITMAJOR UNITS : BAJAJ AUTO AND TATA

MOTORS , FORCE MOTORS , MAHINDRA TWO WHEELER , MERCEDES BENZ , VOLKSWAGEN ,

CONTD…

M & M , PREMIER MOTORS AND FAIT.

HIGHLIGHTS

The metamorphosis of Pune city over recent decades from a verdant , easyplaced abode of choice for retirees to bustling metropolies has been completed.

Its a major information technology hub.The automotive sector occupies pride of

place as the prime mover behind the rapid development of Pune and surrounding areas

Because of proliferation of automobile manufacturing units and component suppliers , also called “Detroit Of india” .

Contd…

the entry of heavy weights automobile industry –Tata motors and bajaj auto –in 1966 subsequently escalated the allied industries.

These allied industries catering to outsourcing requirements of these principals

General motors ,fait , volkswagen and more recently mahindra and mahindra have commited large investments in this region and there entries seems to have opened floodgates for auto investment here.

Cont…

Inflow of investment Speaking to the hindu , Anant sardeshmukh

, Executive director general ,Mahratta chamber of commerce , industry and agriculture , a nodal body for investment in this region said, there was surge in the period 2006 and 2008 when around rs. 12000 cr was spend on projects in this region. However the period between 2008 to 2013 will see the inflow of rs. 40000 in terms of investment in this sector.

Contd….

“ simultaneously there is substantial investment proposed from auto ancillary and component manufacturers and over the same period an investment of around 10,000 cr proposed by them” said Mr Sardeshmukh.

Commitment by MNCs In the last 18 months , large multinational

auto component suppliers like ZF group of Germany have commited around Rs. 50 cr and Permbo of Italy is setting up a Rs 100 cr disc brakes capacity and Norma of Germany plans to invest euro 3 millions

Contd…

Skilled manpower 1. In addition to the auto OEMs

(ORIGINAL EQUIPMENT MANUFACTURER) , Pune has infrastructural supplier , including Bharat Forge among the top forging companies in the world and Sandhvik’s large cutting tool facality .

2. Easy availability of skilled manpower is the prime reason for rapid development

Pune’s USP

AT PRESENT , 1 LAKH ENGINEERS ARE WORKING IN AND AROUND PUNE , A FIGURE PROBABLY UNMATCHED IN THE WORLD .MAHARASTRA DEVELOPMENT CORPORATION HAS CREATED MEGA INDUSTRIAL ESTATES AT PIMPRI-CHINCHWAD , CHAKAN AND TALEGOEN ON A SCALE , WHICH AGAIN IS UNMATCHED.THESE HAVE FOSTERED THE GROWTH OF AUTOMOBILE COMPANIES.AS AUTOMOBILE COMPANIES GROW ,IT IS BUT NATURAL THAT AUTO COMPONENT COMPANIES FLOURISH IN PUNE

HURDLES

-LACKING OF FOCUSSED VENDOR DEVELOPMENT PROGRAM.

- Supply of power

STATE SUPPORT

Infact Pune was first to have manufacturing cluster with one being auto and other being white good. There has been funding from state government and units have been encouraged to increase capacity and upgrade technology.

BUSINESS HUB- BANGALORE

Bangalore - The new business hub

With business prospects in Bangalore is an astounding cosmopolitan city blessed with natural lakes, breathtakingly beautiful gardens and parks, shopping mall, the stunning restaurants and pubs it is the wonderful city to perform business meetings, seminars etc as its hygienic weather conditions and ambiance are favorable for business reasons.

I.T SERVICES

Bangalore is frequently  mentioned as the hub of the Indian I.T. outsourcing group, and  many  internationally acclaimed tech companies along with a number of national Indian tech companies, start their ventures here which otherwise is referred as the Silicon Valley of India.

INCENTIVES

Providing IncentivesSoftware Technology Parks of India (STPI),

Bangalore is a society under the Ministry of Information Technology, Government of India. Companies registered under the Software Technology Park scheme obtain several benefits like:

100% foreign equity allowedCorporate income tax exemption up to 90%Duty free importsDedicated data communication linksCustom bonding and export certification provided at

a single point

BLOOMING ECONOMY

The economy of Bangalore is strong and blooming with every passing day .It is housing some of the richest people. Accommodations With a range of hotels from budget to the luxurious are available depending on the affordability and needs of the travelers. If intended for the business men there are countless options from which to make a choice. A high-quality alternative is the Ista hotel which is a medium range hotel with all the required business amenities and is easily accessible to the market and tourist spots

The airport of Bangalore is the fourth busiest and is housing both domestic and international flights and is well linked to most parts of the world .In addition to this a new airport is also coming up which is being constructed in the suburbs of Bangalore.Bangalore is furthermore well linked to the remaining part of the nation all the way through the Indian Railways. The city has a connection with New Delhi, Mumbai, Chennai, Kolkata, and Hyderabad, as well as other chief cities in Karnataka

There is also intra-city rapid rail transport system called the Namma Metro which is being developed and is expected to be operational in 2011. The city also has well developed roads and transport systems. Taxi services, three-wheeled, black and yellow auto-rickshaws, buses operated by Bangalore Metropolitan Transport Corporation are the various means of public transport within Bangalore city.

ECONOMY

Economy

 Bangalore has a healthy and booming economy. It is home to over 10,000 dollar millionaires and around 60,000 super-rich people who have an surplus of Rs. 4.5 crore and Rs. 50 lakh respectively. As of 2001, Bangalore's share of Rs. 1660 crore (US$ 3.7 billion) in Foreign Direct Investment was the third highest for an Indian city. Bangalore is India’s fourth largest and fastest growing market, with a per capita income of Rs. .49,000 (US$ 1,160)

Silicon valley-Bangalore

‘Silicon Valley of India', Bangalore being the hub of dot-com organizations and businesses, has soaring real estate costing for commercial properties.  With the growing pace of development, the real estate prices of the city have been considerably redefined. As per a recent report, the rate trends for residential properties have risen to a whopping 70% whereas land values have revved up by 100%. An enormous 32% or one-third of the total demand for commercial lands across all metros in India is concentrated in Bangalore. There is therefore a stupendous growth in Bangalore real estate trends.

The booming IT software Service and IT advancements that the city offers has led to an escalation in the real estate prices. In the recent times, there have been marked developments in the residential sector of Bangalore. Catering to the needs of the NRIs inhabiting the city, investors and builders have made an attempt to offer sky-scraping residential complexes and even apartments with their own helipad.

Growth In I.T Sector

. The progression in the commercial sector has triggered considerable development in residential segment of Bangalore

. Due to the growing commercial expansion, owing to the boost in the IT/I.T.E.S sector, the land consumption for commercial purposes has increased to be the second highest in the world which is 14.2 million sq.ft.

TECH PARK

The magnificent attraction for prospective buyers and corporates across the world, the International Tech Park in Bangalore is meticulously built to cater to the needs of international hi-technology firms. This park encompasses the various requirements of the international companies and prospective investors of India.

Contd…

The UB City is the hub of the city's luxury shopping, housing India's first ever luxury shopping mall, The Collection. Expense and luxury characterizes most of Bangalore's downtown core.

This area is home to many of India's tallest high-rise towers, with the UB Tower topping in at 184 metres.

Educational courses

List of Institutions In bangaloreInformation Technology Course in computers are of four types:1. University course.

2. Those offered by IT conglomerates like Microsoft, Sun and Oracle.

3. Department of Electronics Accredited Computer.

CHENNAI as a bussiness hub

Sriperumbudur, Tamil NaduState capital: ChennaiNearest airport: Meenambakkam, 43 kmNearest seaport: Chennai, 50 kmConnected by: Road and airMajor industries: Automobiles, telecom, cement, electronics and glassMajor units: Hyundai Motor India, Nokia and Saint-Gobain

Why Chennai ?

Though cities such as Bangalore and Hyderabad have a larger pool of technological talent, these metropolitan areas are getting too expensive to do business in - both in terms of real estate and personnel. Many companies have turned to Chennai because the city has a large reserve of technical talent and is known for its engineering expertise.

Some of the other factors that have worked in favor of Chennai include its airport infrastructure, the presence of a port and the availability of manpower.

HIGHLIGHTS

India's fourth-largest city, Chennai, is becoming the country's electronics manufacturing hub for many companies including Nokia, Flextronics, Motorola and Foxconn.

Hyundai was followed by 50 ancillaries, which turned CHENNAI into an auto manufacturing hub.

2001, Saint-Gobain, the France-based glass manufacturer, followed with a Rs 535-crore unit, which was subsequently expanded by another Rs 800 crore.

In 2005, Nokia set up a cell phone manufacturing facility in its SEZ here.

Contd…

The nearest airport, at Meenambakkam, is 43 km away, but there is a proposal to build a new airport at Sriperumbudur itself. The nearest seaport is 50 km away in Chennai.

The availability of skilled manpower only adds to the attractiveness of this cluster.

Chennai is known as the Detroit of Asia due to its automotive facilities, but is also building a strong telecommunications presence thanks to Nokia (there are direct flights between Helsinki and Chennai on Finnair), and it also had a busy port and related transport facilities in road and rail.

ACHIEVEMENT AND OPPORTUNITIES

Chennai alone has attracted an investment of about US$1 billion. The past two years have been remarkable in the history of Chennai, with many companies announcing the establishment of operations in the city.

  Flextronics, a $16-billion global Electronics Manufacturing Services (EMS) provider, plans to build a manufacturing facility in the outskirts of Chennai

In the first five years, the company is planning to invest about US$70 million to US$100 million in the plant in Sriperumbudur. This facility will be selected as a SEZ and will offer services such as plastic injection molding, circuit-board assembly, distribution, logistics and repair.

Govt. initiatives

The Indian government is aiming to increase the level of local manufacturing by providing incentives to companies willing to establish local offices in Chennai.

The government has provided several economic incentives to entrepreneurs and developers.

And with the simplification of the procedures for development, the operation and maintenance of the SEZs are expected to stimulate investment and encourage industrial activity.

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