PowerPoint Presentation - Department of Industrial Policy _ Promotion by linzhengnd


									Government of Andhra Pradesh

Mr. Osamu Watanabe
  Chairman & CEO, JETRO
    Business Delegation
Andhra Pradesh – At a Glance

                                               Area: 2,76,754 sq. kms
                                               Population: 76 million
                                               GSDP: $45 billion
                                               GSDP (PPP): $225 billion

                      • Centrally located
                      • Well connected with road, rail, and air
                      • Good port facilities
                      • Assured & Reliable Power Supply
                      • Vast Natural Gas Resources.
                      • Abundant Water Reserves
Connectivity - Ports

 •Visakhapatnam country’s largest natural port - Well connected with the rest
 of the world through Sea-ports on the Eastern coast –

                                           Chittagong                    Japan
                            Kakinada               MYANMAR
                        Gangavaram                Yangon                 China
    Arabian Gulf                      Visakhapatna                       Far East
        Red Sea                       m
                    Krishnapatna                                         Malaysia
      East Africa        mKochi  Chennai                                 Indonesia
    South Africa              Tuticorin
     West Africa                 Colombo                MALAYSIA         New Zealand
  Mediterranean                               Port kelang
                                                                         Latin America
         Europe                                       PTP
                                                             Singapore   Central America
 East Coast USA
                                                                         West Coast USA
Connectivity - Air

                                     • Well connected with the rest of the
                                       world through air

• Excellent connectivity with the
  implementation of International Air-
  Port at Shamshabad
Connectivity – Road & Rail

                                    • Well connected Road and Rail network
                                      links the State with rest of the Country

 • Golden Quadrilateral Project
 connects the growth nodes in the
 state with major cities in the
Infrastructure in AP - Power

 Second   Largest Power Hub in the country with 11,000 MW

  24   x 7 x 365 – Undisrupted availability of

   power for the units already in place

  Most    Competitive Industrial Power Tariff

   compared to industrially developed States
Strong Industrial base
           • Ship Building
           • Fertilizers
           • Hi-precision Machine Tools
           •Power Generation Equipment
           • Electronic Hardware
           • Long Range Missiles
Strong Industrial base
             • Castings and Forgings
             • Defence Electronics

             • Steel and Ferro Alloys

             • Ceramics

             • Petrochemicals

             • Textiles
Exports To Japan from Andhra Pradesh
                                2002-03                    2003-04                2004-05
    Product Group
                                                                   Value in   Value in   Value in   Value in
                          Value in      Value in      Value in                                                  Value in
                                                                   Million    Million    Million    Million
                         Million Yen   Million Rs.   Million Yen                                               Million Rs.
                                                                     Rs.        Yen        Rs.        Yen

 Agriculture & Agro
 based and Forest          792.19        294.02        625.43      232.12      24.64        9.19     121.63       45.37

 Leatherr, Animals &                                               1676.2
                         3100.78       1150.83       4516.57                     0.00       0.00    6846.26    2,554.13
 Marine Products                                                        9

 Mineral & Mineral                                                 2478.0
                            70.63         26.21      6676.76                     0.00       0.00    3943.78    1,470.87
 Products                                                               3

 Handloom & Textiles          5.87          2.18         11.11        4.12       3.29       1.23       3.94         1.47

 Handicrafts & Carpets                                    6.13        2.27       1.58       0.59       0.00         0.00

 Electronics &
                              2.72          1.01          7.01        2.60       0.63       0.23     327.10      122.05
 Electronic Parts

 Engineering Items          92.58         34.36        496.40      184.24      13.17        4.92     107.56       40.14

 s, Allied Chemicals,      549.22        203.84      3304.11                   97.21      36.27      365.63      136.41
Japan FDI into Andhra Pradesh
                                                                                    Equity in
 Indian Company                   Japanese Company                 Product          Million Yen

 Indo matsushita Carbon Company
                                  Marsushita Electric Industrial   Midget
 Ltd                                                                                     83.66
                                  Company Ltd.                     Electrodes
 Nellore District

 Om Shanti Satins Ltd.
                                  Marubeni Corporation             Cotton Fabrics      118.02
 Medak District

 Minota Aquafoods Ltd.            Aquaconoult B.V berkenlantje-
                                                                   Frozen Prawns         11.80
 Visakhapatnam District           II/Showa

 Fimakem India Ltd
 (Formerly S.Chemores Ltd.)       Fimatec Ltd., Sumttomo Fudosan   Chemicals             48.26
 Khammam District

 • Exports from A.P are growing @ 10% every year
 • Bulk Drug Capital of the Country with 1/3rd of India’s
 • Globally recognized and fastest growing base for IT
    and IT enabled services
 • A.P is the second largest store house of mineral
   resources in India
 • A.P is the cement and granite power house of India
 • Leading Producer of Paper
 • Leading state in several Agro-based industries – Sugar,
   Edible Oil, Sea foods
Strongest R & D Base
 • Central Institute of Tool Design

 • Defence Research Development Organisation (DRDO)

 • Defence Electronics Research Institute

 • Defence Metallurgical Research Institute

 • Indian Institute of Chemical Technology (IICT)

 • Centre for Cellular and Molecular Biology (CCMB)

 • National Institute of Nutrition (NIN)

 • Centre for DNA Fingerprinting and Diagnostics

 • Central Institute of Plastics Engineering and
   Technology (CIPET)
                 Advantage Andhra Pradesh

BHEL - Largest Engineering & Manufacturing Enterprise in India

                              Gas Turbine     Steam Turbine

 • Gas Turbines (Largest in India)    •   Pumps
 • Steam Turbines                     •   Pulverisers
 • Compressors                        •   Switch Gears
 • Turbo Generators                   •   Gear Boxes
 • Heat Exchangers                    •   Oil Rigs            Heat Exchanger
              Advantage Andhra Pradesh

Defence Research and Development Laboratory (DRDL), AP

 • Research Center for the integrated Missile Development
 Prithvi – S2S battlefield Missile
 Nag – Anti-tank Missile
 Akash – a swift, Medium range
 S2S missile

 Agni – An intermediate range ballistic Missile
 Trishul – a quick reaction S2S Missile
             Advantage Andhra Pradesh

Defence Metallurgical Research Laboratory (DMRL), AP

Fabricate and weaponize the nuclear devices

• Contribution to AGNI
• Maragingsteel motor castings for the
  Polar Space Launch Vehicle (PSLV)
• Aircraft inventory of Soviet MIG fighters
• Conventional titanium and nickel based
  alloys and indigenous Indian alloys
• Defence Material to aerospace industry

• Rare Earth Magnets (REMs) – advanced technology developed
Talent Pool

     Large pool of English-speaking graduates

         U.G. Colleges              3,50,000 graduates/year

    280 Engineering Colleges         86,000 engineers/year
                                  (Around 18,000 Comp.Sc. students)

    103 Polytechnic Colleges            25,000 seats/year

        272 MCA Colleges                 13,555 seats/year
Talent Pool


  Every 4th IT professional in Silicon Valley is an Indian

Every 4th Indian IT professional in Silicon Valley is from AP
Automobile Industry
 •Preferred destination for Automotive companies –

  Strategic location between Northern and Southern India

  Long Coastal belt with Sea coast

  Vibrant Ancillary Sector – Exporting components to Australia, Germany,
    Iran, Italy, UK and USA

  Skilled workforce

  Huge Captive and emerging markets

  Increased demand for Cars due to improved road network
         Skill Sets of Workers Employed in
    Auto Components Industry in Andhra Pradesh
SNO     AUTO COMPONENTS                             SKILLED JOBS
           PRODUCED                                 CARRIED OUT
1     Castings- Precision / High Pressure   Die making , Casting & Machining
      (Steel, Aluminum & GI)
2     CNC machined components               Tooling & precision machining
3     Steel Forgings                        Forging, Annealing
4     Engine Parts                          Precision machining, grinding
5     Engine Valves                         Forging, Precision Machining, Heat treatment
6     Cylinder Liners                       Precision machining
7     Piston Pins & Rings                   Forging, Precision Machining, Heat treatment, Grinding
                                            Forging, Precision Machining, Heat Treatment,
8     Axle Shafts & Gears                   Grinding, Gear Hobbling
                                            Forging, Precision Machining, Heat Treatment,
9     Bearings                              Grinding & Assembling

                       Name of Company                             International (OEM)               After market overseas
        Rane Engine Valves Ltd.,Kusalava International       VW, Deutz AG, New Holland -         USA, Mexico, UK Italy,
        Ltd.,Samkrg Pistons and Rings Ltd.,Sonali            UK, Italy, Copeland, USA,Piaggio    Germany, Middle East, Africa,
        Castings Pvt. Ltd.,NRB Bearings Ltd.,HMT             vE., Italy, Techumseh Erop-Italy,   Bangladesh, Sri Lanka,
        Bearings Ltd.,Epe Process Filters & Accumulators     aCL Piston Products, Australia,     singapore, Malaysia &
        Pvt. Ltd.,Liners India Ltd.,Castall Technologies     Briggs &Stratton Corn.              Australia,New Zealand, Italy
        Pvt. Ltd.,Maks Castings Pvt. Ltd.,The Jay            USA,Lombardini SRL Italy,David      and Bangladesh,Tigers Axies
        Engineering works Ltd.,Ashok Leyland,Axis Hi-        Pieris Motor Co.Ltd., Sri Lanka     IMC. DWY Enterprises &
        tech International,Thirumani Auto Ancillaries Ltd.   and PD Omar Khayyam,                Finnegan's Inc.,USCO Italy,
                                                             Indonesia.                          Deepak Trading Co., Lanka
                                                                                                 Motors, Colombo, Himali
                                                                                                 Motors, Sri Lanka, Nepal etc.
        Rane Brake Linings Ltd., Sri. Ramadas Motor          VW- Germany, Mando, Delphi,         Sri Lanka, Australia, Kenya,
        Transport Ltd.                                       Eichlin                             New zealand, Japan, Dubai,
                                                                                                 Belgium, Ghana, Saudi Arabia
                                                                                                 and Kuwait.
        Bhudan Engineering Pvt. Ltd.,Lokesh Machine                                              Italy
        Ltd.,CMH Tools (P) Ltd.,Esskay Machine Tools
        India Leaf Spring Mfg. Co. Pvt. Ltd.,Krishna Auto
   Mahindra & Mahindra Ltd.                                                                       Nepal, Bhutam, Srilanka
   Mungi Brothers                                                                                 Mahendra Sona Ltd., Seating
                                                                                                  Pvt. Ltd. Voltas Ltd.,
   Kabson Gas Equipment Pvt. Ltd.,Sri. Bhavani Castings       SKODA Group (under                  Petroleum Companies,Nepal,
   Ltd.,Mikroflo Filters Pvt. Ltd.,Denison Hydraulics India   Evaluation)                         USA, Europe, Taiwan, Korea,
   Ltd.,Eqic Dies and Molds, Eicher Ltd.,Venkateswara                                             Australia, Cuba, Latin
   Laminations & Pressings Pvt. Ltd.,Veljan Hydrair                                               America, Germany & USA,etc
   Ltd.,Hindustan Suspensions Ltd.,Fourth Generation
   Engineers Pvt. Ltd.,Narmada Engg. Pvt. Ltd.
   Synergies Dooray Automotive Pvt. Ltd.,Amara Raja           GM, Ford, SAN Motors, Toyota,       USA, UK, China, Taiwan &
   Batteries Ltd.                                             Daewoo, Hyundai, Kia, Sangyong      Korea , Japan
                                                              (Mercedes Benz-JV) Audi,Ford
   Satyam Computer Service Ltd.,Infotech Enterprises Ltd.     General Electric, General Motors,
                                                              TR&W (US & Europe), Ford
                                                              Motor Co.,Pratt & Whitney (US),
                                                              Bombardier Transportation
                                                              (Canada),, MTU Aero Engines
                                                              (Germany), Wartsila (Finland /
                                                              France), Schhumberger (US),
                                                              Ford Motor Co.
Hardware Industry

 Export potential of Hardware sector - US $ 10 billion by 2008
 It is a hub to cater to the increasing demand both in India as well as other
  markets in Europe, Africa and the Asia Pacific region with world-class
 Major players already set up their base…..
     Millennium Appliances – Refrigeration & TVs
     Astra Micro Wave Products – Defence electronics
     Allotted 200 acres to INTECH
 Scope for investment in Nano Technology, Semi conductors, computer
  peripherals, appliances, precision engineering , ICs, LSICs, VLSICs.

      SEMINDIA taking shape with IBM Collaboration
         ……… Preliminary Site survey for Mega fab
           project indicates that Hyderabad is
           the best destination
Other Sector Specific Parks

                             5000 acres - 40 Km from Hyderabad
                             222 acres developed

                             168 acres under development

                             4 Major National and International Companies have
                               started their activities

                             Close proximity to Rajiv Gandhi International Airport

   • Special Economic zone at Visakhapatnam
Pharma Industry
  • A.P is leading Pharmaceutical centre and No.1 state with 30%
    share of the Indian Pharma Industry.
  • Pharma Industry in AP growing by over 20% p.a.
  • Over 100 pharma companies located in AP
  • Good base for R&D in Pharma Sector
  • Cost advantage - 45 percent lower than the generics manufactured
    in a developed country, and 75 percent lower than those of an
    R&D-based multinational.
  • Leading firms like Dr. Reddy’s Lab, Aurobindo Pharma, Suven
    Pharma set-up their base in the State
  • Pharma City at Visakhapatnam - a unique project with common
    facilities like effluent treatment plant, marine outfall, hazardous
    waste management system and utilities
                       •Manufacturing of Bulk Drugs & Pharma
                       •Pharmaceuticals Formulations
                       •Contract R&D
 • A.P is the leading centre for Biotechnology – awarded “BIO STATE OF THE YEAR
   2003” by Bio-spectrum
 • First State in the country to produce genetically engineered rDNA medical products
   - Shantha
 • About 75 bio-tech companies established their base
 • Major bio-tech companies are – Shanta Bio-tech, Bharat Bio-tech, Biological E Ltd,
   GVK bio-sciences, Krebs Bio-chemicals, Ocimum Bio-solutions
 • Created State-of-art specialized infrastructure like
     • “Genome Valley” - Bio-tech Incubation Centre
     • Shapoorji Pallonji Bio-tech park over 300 acres of land at Turkapalli
     • Agri Science Part at ICRISAT
     • Marine Bio-tech park at Visakhapatnam
 • Opportunities
     • Existing R&D base offers Biological Contract R & D –Thanks to GOI for IPR
Pharma and Biotech Parks
 For Bulk Drugs manufacturing Industries
 40 KMs from Visakhapatnam
 Spread over an area of 2200 acres

                                                               Jawahrlal Nehru Pharma
 Biotech Park:                                                 City at Visakhpatnam
  For biotech manufacturing industries
  35 KMs from Hyderabad
  Spread over an area of 300 acres
Genome Vally
                                    India's first state-of-the-art biotech cluster with world-
                                     class infrastructure - Spread over 600 sq. kms,
                                    35 Kms to Hyderabad
                                    Genome Valley is a natural cluster for biotech research,
                                     training, collaboration and manufacturing activities

                                                                       ICICI Knowledge park

 200 acres -     35 Km from Hyderabad
 World class centre for leading-edge business-driven
  research in India".
 Major National and International Companies have
  started their activities

 • AP is the 2nd producer of quality Cotton in the country
 • Well developed spinning and processing sectors
 • Major Player: Chermas, Fantoosh, Karthik, Recherla, Symatic and Hindustan
 • Availability of low cost, skilled & semi-skilled lab our.
 • Govt. provides Rs.1/- per unit concession in power cost for textile units

 • After removal of QTR in 2004, India in general and A.P in particular has vat
   potential for promoting Garment industry
 • Excellent Scope for Garment Industry – China alone exporting apparels - Rs.60 bil
 • Exports of apparels expected to grow to US $ 2 billion by 2010
 • Vast scope for Garment/apparel industry in the State utilising the raw materials
   and infrastructure
Performance of Andhra Pradesh

 IT sector tops & accounts for 45% of total exports of all the
  sectors from the State.

 IT exports have crossed Rs 82.7 bil mark with an impressive
  growth rate of over 64.5% against the national average of 34%

       Year          IT/ITES Exports    % growth      Number of Employees

                       $ Millions      Year on Year

      2002-03             802             26%               71445
      2003-04            1100             37%               85945

     2004-05            1809            64.5%            126920
Global Firms Established in Andhra Pradesh
    IT                                              ITES                     Hardware
•   Microsoft             •   Satyam            •   GE Capital           •   HCL Infosystems
•   IBM                   •   Infosys           •   Deloitte             •   Celetronix
•   Oracle                •   TCS               •   24/7 Customer        •   WeP
•   Computer Associates   •   Wipro             •   Dell                 •   Celestica
•   Convergys             •   Visualsoft        •   Bank of America
•   Keane                 •   Infotech          •   ADP
•   Cordys-(Vanenburg)    •   Intelligroup      •   HSBC
•   Motorola              •   Sierra Atlantic   •   Accenture
•   Nokia                 •   Polaris           •   General Motors
•   Intergraph            •   Mentor Graphics       Holdings Corp
•   Kanbay                •   Qualcomm              (Capmark)
•   CSC                   •   NCR               •   Google
•   Analog Devices        •   Invensys          •   Franklin Templeton
•   Cognizant Tech        •   Synopsis          •   McGraw Hill
•   Cypress               •   Patni             •   Amazon.com
    Semiconductors        •   Sonata            •   UBS
•   Cadence               •   Progressive       •   Countrywide
•   Verizon                   Software          •   Hinduja TMT
Infrastructure – IT Parks
 HITEC City – Developed by L&T

 •   Cyber Tower
     550,000 sq. ft. of built-up space
 •   Cyber Gateway
     860,000 sq.ft. of built-up space

                                         Cyber Pearl
                                         •   Total planned built-up space
                                             of 500,000 sq.ft
                                         •   First phase of 250,000 sq. ft.
                                             inaugurated in October, 2004
                                         •   In partnership with Ascendas,
Infrastructure – IT Parks                               MinSpace Hyderabad

                                   • MindSpace is another joint venture of the
                                     Government in creation of physical
                                     infrastructure to ICT industry
                                   • MindSpace has so far developed 1 million
                                     sft, creating an employment of more than
                                   • Houses prestigious ICT MNCs such as
                                     Continuum Solutions, CSC, IBM,
Aerial View -MindSpace Hyderabad     Accenture, Amazon, Qualcomm, Verizon
                                     and many more
Infrastructure – IT Parks

  RMZ Futura
 • Covering 5.24
 • 350,000 sq. ft. of
   built-up space
 • Occupants
   include Deloitte &

 Vanenburg IT
 • 850,000 sq ft of
  built up space        Other IT/ITES parks:
 • Occupants            Splendid Towers, Cyber Spazio and
                        many others
  include CA,
  Motorola, CTS
Infrastructure – Private Campuses

       Deccan Park            Infosys
        (TCS)                 Development
       • TCS initiative       Centre
         covering 11          • Campus spread
         acres                  over 50 acres
       • 320,000 sq.ft        • 511,000 sq.ft of
         development            built-up area
         center               • Employs 5000
       • Employs 3,200          software
         IT professionals       professionals

      • 200,000 sq. ft.     Satyam
        SDC in              Technology
        Madhapur            Centre (STC)
      • SDC in              • 240 acre ‘Hi-
        Manikonda             Tech’ centre at
        spread over 30        Hyderabad
Investor Friendly Governance – policy initiatives

 Single  Window Clearances Act - Industrial clearances at
  Single Point

 APINVEST -     First contact point for Non Resident Indians

 Highest Board - State Investment Promotion Board for
  investment Promotion

 Infrastructure Authority   – Infrastructure Enabling Act

 Simplified   Procedures
Investor Friendly Governance - Incentives
    Infrastructure at the Door-step
    100% reimbursement of Stamp duty
    25% rebate in Land cost (APIIC)
    Reimbursement of power cost @ Rs.0.75 per unit- unique State to offer
 Growth Enabling Incentives
    25 % VAT reimbursement
    15 % Investment Subsidy to SSI units.
    3% interest subsidy to SSI units.
    Incentives for quality , patent registrations.
 Mega Projects
    Tailor Made Special Incentive Package for Mega Projects ( > Rs.1000 Million)
                          Andhra Pradesh          -

Thank                    the most IDEAL destination
                           for investment in INDIA

        visit: www.apind.gov.in

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