MahaConnect The Business Newsletter

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1 51 st Edition July, 2014 MahaConnect The Business Newsletter From the Government of Maharashtra- MIDC

2 Editorial Dear Reader, We are happy to present to you the 51 st edition of MahaConnect - Government of Maharashtra, MIDC Business Newsletter. Through MahaConnect, our focus is to provide key intelligence to our readers about the state s development on the industrial front. This edition include district profile of Satara and elucidates various factors that have bolstered the industrial growth in the region and led to emergence of Satara as a prominent industrial area in the state. It also covers industrial profile of Ranjangaon and highlights the success story of the multinational conglomerate General Electric, with the establishment of their first of its kind multi modal manufacturing facility, which will cater to domestic as well as global markets. This edition also presents some key facts and statistics, which corroborate the state s position as a leader on the Industrial front of India. As always, we look forward to your valuable comments and feedback which will help us in making MahaConnect more enriching for our readers. Please write to us at mahaconnect@midcindia.org. We also invite you to visit our website for further details and opportunities the State provides in the realm of setting up industries in the State. Regards, Bhushan Gagrani (IAS) CEO, MIDC.

3 Contents SATARA INDUSRTY DIVERSIFICATION AT ITS BEST Satara has a diversified industrial base. Its vendor base and fiscal incentives attract Engineering companies, its proximity to Pune draws Auto-components manufacturers whereas its favourable agro-climatic condition and proximity to markets such as Pune have made it an attractive location for food processing companies. Please read the District Profile section to know more about Satara s industrial scenario. RANJANGAON - INDUSTRIAL ESTATE PROFILE The Ranjangaon Industrial Area is situated in Pune district of Maharashtra. Designated as Auto cluster and centrally located on the map of the State of Maharashtra, Ranjangaon industrial area is a opportune place to invest in the Auto and Engineering sector. The well developed industrial infrastructure and easy access to the world class social infrastructure completely justifies the large industrial presence in this industrial area. 1 2 MAHARASHTRA - KEY STATS Maharashtra has witnessed huge industrial development and is one of the leading states in India on the industrial front. The economic statistics of the state is a clear reflection of its industrial development. This section explains Maharashtra's success through some key statistics in three main domains Economy, Industry and Infrastructure. GE (GENERAL ELECTRIC) - EXPANDING FOOTPRINT General Electric (GE) is a diversified technology and financial services company. GE has established its first manufacturing plant in Chakan (near Pune in Maharashtra), which is spread over an area of 68 acres. Additionally, GE has a technology centre at Mumbai. Read the Success Story section to know more about the company s footprint in the state. 3 4

4 District Profile 1 Socio Economic Indicators Population (in 000s) 3004 No. of households( 000) 654 Literacy rate (%) 82.9 Decennial Growth Rate (%) ( ) GDP ( in INR Crore) Per capita income ( in INR) Airports Sea Port/ Nearest Infrastructure Indicators ,341 81,488 Pune International Airport -124 km JNPT 249 Km Roads Railways DISTRICT SATARA Satara s has a large diversified industrial presence. The district s GDP grew by a significant 9.8% over From Power to Food processing to Engineering, the district houses many established manufacturing companies such as Tata Cummins, Jindal Steel & Power, Bharat Gears,, Aristocrat Luggage Ltd, UB engineering, MSPL, Chordia Food Products amongst others. The Satara District is located in the western part of India and spans over an area of 10,480 sq. km covering 3.4% of the state s total area. Satara is the capital of the district and it comes under Pune Administrative Division. The district is surrounded by Ratnagiri district on the West, Sangli district on the south, Solapur on the west, Pune on the north and Raigad on the north west. Proximity to Pune and Raigad gives Satara an easy access to a large industrial base and to cities which have India s best social infrastructure. Its proximity to agri-rich Sangli and Solapur districts ensures availability of agricultural produce. Krishna is the main river flowing in the district. The soil in the parts surrounding rivers, especially of Krishna and Koyana in central part of the district is black soil, which is very fertile. The fertility of the soil is one of the contributing factors towards the growing agro and food processing industry in Satara. Satara is well connected by both - road and rail. Spread across the district are 130 km of National Highway and 965 km of state highway. National Highway 4 (NH 4) is a major National Highway in Maharashtra Western and Southern India, which passes through Satara. The NH 4 constitutes roughly 90% of the Satara District Golden Quadrilateral's Mumbai-Chennai segment and links four of the ten most populous Indian cities - Mumbai, Pune, Bangalore, and Chennai. The Satara railway station has direct train connectivity with major cities such as Mumbai, Pune, Bangalore, Nagpur, amongst many others.

5 District Profile THE MUMBAI-BANGALORE ECONOMIC CORRIDOR The proposed Mumbai-Bangalore economic corridor will pass through the district (subject to the final feasibility report). In 2013, the Indian and British governments agreed to undertake a joint feasibility test on the project, so that this project could be taken up for execution at the earliest. The Indian government has aimed to generate an investment of over INR 300,000 crores (USD 50 billion) from this corridor. A million homes and 2.5 million jobs are proposed to be created along the corridor. With the development of this corridor, Satara district is expected to witness a steep rise in it s economic activities. Mumbai Bangalore INDIA SATARA INDUSTRIAL PRESENCE Chordia Food Products - Chordia Food Products, which is listed on the BSE stock exchange and is a large manufacturer and exporter of pickles and other processed foods have successfully grown in the district. Bharat Gear s Satara plant Jindal Group - In 2009, the global conglomerate - Jindal Group ventured into Green Power by setting up a 24 MW Wind Energy project in Satara, Maharashtra. Bharat Gears - One of India's largest gear manufacturer, Bharat Gears Limited inaugurated its plant at Lonand, Satara in The plant is focused on manufacturing transmission gears and was established to enhance the company s servicing capabilities for its customers in and around the Pune region. Tata Cummins Plant at Phaltan, Satara

6 Why invest in Satara? Connectivity The district has 130 km of National Highway and 965 km of state highway The district has a 124 km long rail network, which traverse from north to south by a railway line.. Satara has direct train connectivity with major cities including Mumbai, Pune and Bangalore. The International Airport in Pune is located at a distance of 122 km from Satara and is connected through both - national as well as state highways. Large industrial base Strategic Location The district s GDP grew by a significant 9.8% over Satara s advantages on the industrial front have attracted many large manufacturing companies such as Tata Cummins, Jindal Steel & Power, Bharat Gears, amongst others Satara s proximity to Pune and Raigad ensures easy access to a large industrial base and cities which have India s best social infrastructure. Its proximity to Sangli and Solapur ensures availability of agricultural produce. Companies such as Bharat Gears have set up their transmission gears plant in Satara to enhance their servicing capabilities for its customers in and around the Pune region. The district s geographical location and its connectivity with major cities such Mumbai and Pune make world class social infrastructure easily accessible. Proximity to Port Satara to JNPT (Jawaharlal Nehru Port) 240 Km Satara to MBPT (Mumbai Port) 267 Km JNPT and MBPT are well connected to Satara by road Cost Advantage Satara enjoys relatively cheaper land rates than Pune and Mumbai, which significantly reduces the initial capital outlay. Moreover, all industrial areas in Satara are classified under D and D+ regions, which means that companies in the district enjoy higher fiscal incentives under Maharashtra s Industrial Policy The proposed Mumbai-Bangalore economic corridor will also pass through the Satara district. The corridor will be developed jointly by India and United Kingdom and will give Satara a huge boast in terms of investments in its manufacturing sector. Mumbai Bangalore Economic Corridor

7 District Profile INVESTMENT OPPORTUNITIES IN SATARA Food Processing Sector Maharashtra is the largest producer of Grapes in the country. In , the state produced 1.8 MMT of grapes, which was 81.5% of total production. Along with Pune and Solapur, both of which borders Satara, the district itself is one of the major regions where grapes are grown. Guava is emerging as one of the major fruits of Maharashtra with a steady increase both in production as well as productivity. Satara is one of the few main regions in Maharashtra where this fruit is grown. India is a major producer as well as exporter of raisins. In India, raisin is mainly produced in the state of Maharashtra and Satara is one of chief raisin producing regions in the state. Additionally, Satara is one of the major onion producing districts in the state. Satara s soil fertility is one of the many reasons of the growing agro and food processing industry in Satara. Satara s shares its borders with Sangli and Solapur, both of which are rich in terms of agricultural produce. The district s proximity to Sangli and Solapur ensure abundant availability of agricultural produce and its connectivity make it an opportune place to set up food processing industries. Maharashtra Satara District Neighboring districts rich in agricultural produce The district houses many companies engaged in sugar manufacturing and beverage manufacturing, including Privilege-Industries-Limited, Ajinkyatara SSK Ltd, Sahyadri SSK Ltd, Khandoba Prasanna Agripower Ltd, New Phaltan Sugar Works, Satara SSK Ltd, Pratapgad SSK Ltd, Rayat SSK Ltd, amongst others. Since Satara is strategically located in terms of food processing industry in Maharashtra and because of the existing agro and food processing industries, there is a huge opportunity of setting up Food Packaging Industry in the district. Case Example - Chordia Food Products Chordia Food Products is an ISO certification company. The company exports its products produced in Satara to the Gulf Region, USA, UK, amongst other countries. The company has won many awards and quality certifications for its products. Their current range of products includes Pickles, Ketchups, Spice Pastes, Sauces, Milk Shakes, Custards & Syrups. The company has established the Chordia Food Park in Satara, which is a food park set up in 75 acres of land.

8 District Profile INVESTMENT OPPORTUNITIES IN SATARA Engineering Sector Power utilities are currently the biggest contributor to growth of the Engineering sector. The presence of large companies in the power sector such as Tata Power, Reliance Energy, Ratnagiri Gas and Power Pvt. Ltd, Adani Power, and many other state owned power companies make Maharashtra a big consumer of Power generation & distribution equipment. Since the Engineering sector is a capital intensive sector, companies can leverage Satara s D and D+ classification under the current industrial policy and thus get much higher fiscal incentives. The key raw materials required by the engineering sector include ferrous and nonferrous metals (mild steel and aluminium) and ready availability of these raw materials, due to Satara s road and rail connectivity gives companies a major cost advantage, as materials account for nearly a significant share of this industry s operating costs. Cheaper land rates in Satara also act as a major advantage for the capital intensive companies in the engineering sector. Since land costs constitute a major part of total capital investment, thus the lower land prices help companies improve their return on investments. Apart from the cheaper land rates, Satara s existing industrial base, its proximity to Pune and its connectivity to other districts of industrial importance ensure access to a large industrial base and world class social infrastructure. Auto Components Sector Satara s proximity and its connectivity to Pune which is one of the largest auto hubs in India, ensures lower logistics cost and hence lower cost of the final auto components produced, thus giving companies in Satara an advantage in terms of price competitiveness. The district has a literacy rate of 82.9 per cent. Availability of skilled labor is one of the advantage drawn by auto ancillary companies in the district. Satara shares its border with Pune which is one of the largest Auto hubs in India, its cheaper land prices and the fact that companies in the district enjoy higher fiscal incentives make it an opportune place for the investors to invest in the Auto Components sector.

9 District Profile MIDC Industrial Areas in Satara District MIDC Area Total Land (Hectares) Wai Satara Addl. Satara Karad (GC) Koregaon (Mini) Mhaswad (Mini) Lonand (Mini) Patan (Mini) Kesurdi (Khandala) Phaltan & Addl. Phaltan The district of Satara has 10 industrial areas under MIDC. The total land bank coverage of these industrial areas is hectares. For detailed information on each of these industrial areas. Including availability of land please refer to the flowing link For further information, please refer to the following links 1. For power tariffs applicable All&Region=All 2. For Land Rates ea=all&region=all 3. For Water Rates Area=All&Region=All For any further information on the services provided by MIDC and other important state policies including the new industrial policy 2013, please visit our website -

10 Industrial Estate Profile 2 Industrial Estate - Ranjangaon Ranjangaon in Pune District Regional Office Information Officers in Charge Shri. Nilesh Gatane ( RO) Shri. A. M. Bhosale (AM) Shri. V. K. Sable (EE) Address - Jog Centre,2nd Floor, Pune Mumbai Road, Wakdewadi, Maharashtra Ranjangaon Industrial Area Pune District Tel / , Fax ropune@midcindia.org Classification C Why Ranjangaon? JNPT and MBPT is only 180 Km and 200 km from the site and are well connected through the Mumbai-Pune Expressway, which is India's first six-lane concrete - high-speed - access controlled expressway. The International Airport at Pune is only 50 km from the Ranjangaon Industrial Area and can be easily accessed by road. Ranjangaon Industrial Area s proximity to Pune (at 50 km) provides industries with access to Pune s large industrial base and vendor base. Ranjangaon s proximity to Pune and other places of industrial importance in Maharashtra and its connectivity through both Road and Rail make it an attractive location for investments. Ranjangaon Industrial Area is classified as C region due to which industries enjoy relatively higher fiscal incentives as per industrial policy Pune is a DMIC node and Ranjangaon comes under the DMIC impact area which means that there will be enormous development of industrial infrastructure in the near future. Ranjangaon s proximity to Pune bestows the industries in this industrial area with the advantage of easy accessibility to world class social infrastructure.

11 Industrial Estate Profile About Ranjangaon Ranjangaon is a village located at a distance of about 50 km from Pune. The town is located between State Highway (Pune Aurangabad). Site Connectivity Road Rail Air The Industrial area can be reached through the State Highway 27, which is a major state highway that runs northeast from Pune to Ahmednagar in the state of Maharashtra. Ranjangaon has direct connectivity to Pune, which is a railway junction on the Mumbai - Chennai railway line and is also the origin of Pune - Bangalore railway line. Pune international airport is connected through the State Highway 27, which is 55 m from the district. Port Nearest port - Jawaharlal Nehru Port Trust (180 km), Mumbai Port MBPT ( 200 km) via Mumbai-Pune 6 lane Expressway. SOCIAL INFRASTRUCTURE Schools New English School (Shirur), Municipal primary school (Shirur), C.T Bora Higher and secondary school (Shirur). Hospitals Mahaganpati Hospital (Ranjangoan), Dhariwal Hospital (Shirur), OM Hospital (Ranjangoan). Colleges Sitabai Thite College of Pharmacy (Shirur), C.T Bora College (Shirur), Fergusson College (Pune), Symbiosis International University (Pune) Hotels The Park Central (Pune), Hotel Taj Blue Diamond (Pune), Sun N Sand (Pune), The O Hotel (Pune), JW Marriott Hotel (Pune), Hyatt Regency (Pune)

12 Industrial Estate Profile Industrial Presence Company Type of Industry Company Type of Industry Bekaert Industries Steel tyre cord LG Electronics Electronics Carraro India Washing machines Apollo Tyres Tyre Tubes Tata Ryerson Limited Steel Products Jabil circuit Electronics Whirlpool Refrigerators Durabuild Technologies Aluminium Composites Bombay Dyeing Textile PepsiCo Food & Beverages Investment Opportunities AUTO & AUTO COMPONENTS Proximity to Pune (at 50 km) which is one of India s largest Auto Hubs Automotive Research Association of India (ARAI) in Pune Easy availability of skilled labor Access to Pune s social infrastructure Connectivity and proximity to port 180 Km) Access to Pune s large industrial base ENGINEERING A central location and connectivity ensures easy and regular availability of raw material Higher fiscal incentives based on the capital invested since Ranjangaon Industrial Area is classified as a C Region under the current industrial policy MIDC has developed the Ranjangaon Industrial Area. The industrial area is located in hectares of land

13 Industrial Estate Profile INFRASTRUCTURE AVAILABILITY Electricity Maharashtra State Electricity Distribution company ( MSEDCL ) provides electricity to major industrial areas. Existing sub - station having capacity of 220/32/22 KV has been constructed within the industrial area. Power sub station having capacity of providing 120 MVA has been installed within the industrial area. Internal Road Connectivity Plots are divided into small, medium & large sizes and with respect to it the following internal roads have been developed. The roads are mostly 60 m, 30 m and 20 m wide which are well connected through out the industrial area. Water Water Source - Goad Dam Installed Capacity 27.6 MLD (Million Litres per day) Telecommunications The site is in close proximity to major cities and district with all major telecom providers existing having a good network connectivity. TARIFFS Tariffs For further information on land, water and power rates, please refer to the link

14 Maharashtra Key Stats 3 With a GSDP (Gross State Domestic Product) of INR 13.7 lakh crore in the year , the state has the highest GSDP in India. ECONOMY The manufacturing sector contributes a significant per cent to the state s GSDP. Amongst the 10 states with the highest GSDP (Gross State Domestic Product) in India, Maharashtra is one of the leading states in terms of contribution of manufacturing share to the GSDP. Maharashtra has a Per Capita Income (PCI) of INR 1,07,670. The state has the highest per capita income amongst the 10 states with the highest GSDP in India. With the 2nd highest population in India and a high per capita income Maharashtra has is one of the biggest consumer markets in India. Maharashtra has the highest Industrial Output in the nation. The state s gross industrial output amounted to INR 10,05,377.9 crore in , which is per cent of the nation s total gross industrial output. INDUSTRY The state recorded the highest Industrial value addition in the nation. The Gross Value Added by all industries in the state amounted to INR 1,79,222 crore in the year , which is 59 per cent greater than the value addition of its closest follower. Maharashtra has the second highest number of factories in India and the state witnessed one of the lowest number of industrial disputes. In terms of Net value Added Per Factory, the state ranks first among the 5 states with the highest GSDP in India. INFRASTRUCTURE The state has one of the largest transportation networks in the nation which bolsters its development on the industrial front. With 5,602 km of Railway lines spread across the state, the state has one of the longest networks of rail lines in India. The state has two of the largest ports in the country, Jawaharlal Nehru Port (JNPT) & Mumbai Port (MBPT) which together account for per cent of the total traffic at all major ports in India. In 2013, Maharashtra contributed a significant per cent of the total traffic at all ports in India. In terms of both, total capacity of power plants and total electricity generated, Maharashtra is one of the leading states in India.

15 GE - Expanding Footprint 4 General Electric (GE) About GE General Electric (GE) is a diversified technology and financial services company. The products and services of the company range from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing, and industrial products. It serves customers in more than 100 countries. GE s first manufacturing centre in India is spread across a 68- acre campus on the outskirts of the city of Pune. This one of a kind USD 200 million facility will be a multi-modal industry manufacturing facility, which aims to cater to the needs of its diverse business from power to aviation to transportation to healthcare from this particular manufacturing facility. As per GE South Asia President and CEO - Banmali Agrawala this manufacturing facility will manufacture products that would be exported to global markets. GE is also working on Phase II of the project which will focus on reciprocating engines. Power Transportation Aviation Healthcare GE s Mumbai Technology Center (MTC) is a key product development site for the Measurement & Control business in GE Oil & Gas and the Monitoring & Diagnostics business of GE Power & Water. The site develops cutting edge software and firmware for the market-leading Bentley Nevada asset condition monitoring & management products that help customers manage their critical and essential assets in the oil and gas, and power generation industries. India's key strength in the manufacturing area is the availability of talent Banmali Agrawala, South Asia President and Chief Executive Officer, GE Achieving potential through technology Considering the benefits of flexibility in manufacturing and as a part of the new USD 200 million facility, GE will install a number of 3D printers that will manufacture high quality plastic parts, eventually transitioning to metal additive manufacturing. The company has installed the first 3D printing machine at the Chakan plant.

16 For Feedback, write to us at: Contact us: Maharashtra Industrial Development Corporation Udyog Sarathi Mahakali Caves Road, Andheri(E), Mumbai Phone: / 54 / 73, Fax: , mahaconnect@midcindia.org Maharashtra Industrial Development Corporation Knowledge Partner Disclaimer Maharashtra Industrial Development Corporation ( MIDC ) has engaged Ernst & Young LLP. ( EY") to prepare this document and the same has been prepared by EY in consultation with MIDC. This document is for information purposes only. While due care has been taken during the compilation of this document to ensure that the information is accurate to the best of EY's knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. EY does not assume any liability or responsibility to any person for the outcome of decisions taken by such person as a result of any reliance placed on this presentation. EY shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by MIDC and the Authors. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of MIDC