why gujarat ?

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%

ssin

g

ond

ss

ing

ust

ry

mic

als

mic

als

tica

ls

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

Select Players

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.

Select Players

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


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


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

Select Players

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.


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


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

Select Players

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

Select Players

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


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

Select Players

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


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


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

Select Players

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

Select Players

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


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

iNDEXTb iNDEXTb INDUSTRIAL EXTENSION BUREAU (A GOVT. OF GUJARAT ORGANISATION)

SO9002008Cifid

Block No. 18, 2ndFloor, Udyog Bhavan,Sector 11, Gandhinagar, 382 017, Gujarat, INDIA

Phone: 079-23256009, 23250492/3Fax:07923250490

ISO 9001:2008 Certified

Fax:079-23250490E-mail:[email protected]

Website:www.vibrantgujarat.com, www.indextb.com

Contact

Ravindran Nambiar

Founder - Sparkle Minds

Marketing Process Outsourcing & Human Capital Solutions

Tel: (+91) 9909912075 | Mobile: (+91) 9173908199

Skype ID: kingnambiar, Email: [email protected]

www.sparkleminds.org