IT Sector : Maharashtra


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Research Report on IT sector in Maharashtra, India.

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IT Sector : Maharashtra

  1. 1. Information Technology An engine for Global Economic Growth Knowledge PartnerMagnificent Maharashtra Opportunities Unlimited
  2. 2. Maharashtra Profile Percentage in MaharashtraEconomic GSDP growth rate 8.7 Maharashtra: Industry growth rate 8.5 § Highest State Domestic Product Literacy Rate 76.9 § Highest aggregate bank deposits and gross creditsSocial Urbanization 42.4 § Highest contribution to India’s corporate tax collections (61%) 0.0 20.0 40.0 60.0 80.0 100.0 § Most urbanized State Percentage of Maharashtra in India Wine 87Industrial Auto & Auto Components 38 Bio Tech 33 Software Export 30 Exports 27Economic Industrial Output 18.4 With 9.4% of India’s population, Maharashtra has 18.4% Employment 15.3 of industrial production. GDP contribution 14.7 Population 9.4Social Geographical Area 9.4 Source: Socio-Economic Review , Maharashtra 2010-11; Annual Survey of Industries 2008-09 * Maharashtra’s GSDP contribution to India’s GDP is at current prices
  3. 3. Maharashtra Profile Road Connectivity India Maharashtra Road Total Length of National Highway (in km): 70,934 4,376 Total Length of State Highway (in km): 1,31,899 34,102 Total Length of Major District Roads(in km): 4,70,000 49,901 Total Length of Other District and Village Roads (in 26,50,000 1,51,661 km): - 97.5 % of the villages are well connected with all weather and 2 % by fair weather roads in the state. Source: GoM (2010), Economic Survey of Maharashtra 2010-11, Mumbai: Directorate of Economics and Statistics, Planning Department. Railway Connectivity India Maharashtra Railway Total Length of Railway network (in km): 64,755 5,983 - The state encompasses 2 major railway zones; the Central and Western - 9.4 % of total railway network in the country - The railway route length per 1,000 sq. km of geographical area is 19.44 km in the State as against 19.69 km in the country. (as on 31st March, 2010) Source: GoM (2010), Economic Survey of Maharashtra 2010-11, Mumbai: Directorate of Economics and Statistics, Planning Department.
  4. 4. Maharashtra Profile Airport Airport Connectivity India Maharashtra Total No. of Airport: 449 22 Total No. of International Airports: 17 3 Total No. of Domestic Airports: 114 5 -Maharashtra is well connected to major cities in the USA, EU, Asia and other Indian metropolitan cities. -The state has the highest number of airports in the country . Source: MIDC, AAI and MADC Port Port Connectivity India Maharashtra Coast-line (in km): 7,517 720 No. of Major Ports: 12 2 No. of Minor and intermediate Ports: 187 48 Container traffic (in TEU million): 6.89 4.15 - JNPT in Maharashtra is Indias largest container port (59.4%). - 20.5% of the total cargo traffic of the major ports in India is handled by the state (3rd highest) Source: GoM (2010), Economic Survey of Maharashtra 2009-10, Mumbai: Directorate of Economics and Statistics, Planning Department.
  5. 5. Maharashtra Profile Power Power Facilities India Maharashtra Electricity Generation Capacity (in MkWh): 77,15,510 81,345 Installed Capacity (in MW): 1,73,626 19,166 - Maharashtra has the largest installed electricity generation capacity Source: GoM (2010), Economic Survey of Maharashtra 2009-10, Mumbai: Directorate of Economics and Statistics, Planning Department. IT/ITeS Facilities India Maharashtra IT/ ITeS Total no. of Industrial Training Institutes: 2,133 388 Total no. of Industrial Training Centres: 5,906 297 Total seating capacity: 11,15,628 1,21,744 -Out of 1396 Government ITIS being developed in India in PPP mode, 266 are in Maharashtra - India’s 18% of ITIs is in the state with a 20 % seating capacity Source:, April 2010 SEZ Special Economic Zones India Maharashtra Notified SEZs: 377 63 Approved SEZs: 738 143 - Highest number of approved SEZ in the country are in Maharashtra Source: & Maharashtra Industries Department, September 2010
  6. 6. Global IT Sector
  7. 7. Global IT services industryGlobal IT spending has increased by 4% on 2010► Across the world, computing hardware spending increased by 6.4% in 2010► IT services spend increased by 1.4 per cent in 2010, within which IT outsourcing grew by 2.4%, BPO grew by 4%. Within IT outsourcing, global sourcing grew by 10.4% in 2010► Worldwide software spending rose by 3.7% in 2010 IT Service Industry Structure BPO Engineering Service Infrastructure Management Computer Services Services Packaged software (Software Offshore/Outsourcing Products) Remote Infrastructure Research and Development (R&D) Management (RIM)Source: The IT-BPO Sector in India – Strategic Review 2011 Executive summary, Nasscom
  9. 9. Indian IT services industryHardware and IT Services account for 75% of total revenues► The sector is expected to grow by 19.2% and reach Revenue break-up trend and contribution to GDP USD 88.1 billion in 2010-11 as compared to USD 73.9 billion in 2009-10 50 7.00% 45 6.00% 40► The domestic market (including hardware) grew by 35 5.00% USD billion 30 16% in FY2011, to reach USD 17.35 billion 25 4.00% 20 3.00%► The data center services market is forecast to grow at 15 10 2.00% CAGR of 22.7% between 2009 to 2011 5 1.00% 0 0.00% FY04 FY05 FY06 FY07 FY08 FY09► The industry is expected to add 2,40,000 jobs in Export Domestic % of GDP FY2011, thus providing direct employment to over 2.5 million and indirectly employing 8.3 million people Break-up of exports by service line, FY11► Export revenues are estimated to gross USD 59 billion in 2010-11 as compared to USD 50 billion in 2009-10 19.00% IT Services BPO► US and UK IT services are witnessing a shift towards outsourcing services. 24.00% 57.00% Engineering services and software product► Indian software product segment is estimated to reach USD 3.46 billion Source: Information Technology Annual Report 2010-11
  10. 10. Indian BPO services industryThe IT-BPO sector’s revenue is estimated to account 6.4% of country’s GDP in 2010-11► In 2010, the domestic BPO market was worth Indian BPO revenues USD 1.1 billion. The domestic BPO segment is expected to grow by 16.9% to reach USD 2.8 14 billion in FY2011.► Drivers of demand are voice based services, 12 1.6 emerging verticals, new customer segment and CAGR: 38% value based transformational outsourcing 10 platforms. 1.1 USD billion 8► BPO Exports is expected to grow from USD 12.4 0.9 billion in 2009-10 to USD 14.2 billion in 2010-11 6 10.9 0.6► India BPO exports segment is estimated to employ 4 8.4 7,68,000 knowledge professionals in 2009-10 0.3 6.3 2 4.6► BPO sector evolution - BPO 3.0 - characterised by 3.1 greater breadth and depth of services, process re- 0 engineering across the value chain, increased FY04 FY05 FY06 FY07 FY08 delivery of analytics and knowledge based services Domestic Exports through platforms, strong domestic market focus and SMB centric delivery models Source: NASSCOM IT-BPO factsheet,” NASSCOM website,
  12. 12. Maharashtra IT/ITeS Industry – Thenumber storyMaharashtra IT sector is one of the topnotch sector in the State with maximum thrust,development and investments► 90% of the India IT-BPO industry is concentrated in 7 cities in India, including Mumbai and Pune in Maharashtra Recent Initiative in Maharashtra► Maharashtra contributes over 30 per cent of the e-Governance countrys total export of software ► Open Technology Centre (OTC)► The State houses more than 1,500 software units ► National e-Governance Plan (NeGP)► Maharashtra’s IT sector grew at 24% from USD 2.091 ► Electronics Hardware Manufacturing billion to USD 8.786 billion in 2008-09 ► Common Service Centres (CSCs)► Pune witnessed the highest IT exports, contributing more than half of the total at around USD 5,228 million, ► State Data Centres (SDCs) followed by Mumbai at USD 3,346 million in 2008-09 ► Community Information Centres (CIC)► The STPI units in Nagpur, Nashik, Aurangabad, and Kolhapur also showed noteworthy growth ► National Knowledge Network (NKN) FDI in Information Technology Sector Maharashtra ► State Wide Area Networks (SWANs) Sector Total projects Investment (INR. crore) ► E-complaints System for the police IT/ITeS 762 12,765 Source: IDM September 2010
  13. 13. Maharashtra IT/ITes IndustryAccording to Nasscom and AT Kearney’s report ‘Assessment Of 50 Leading Cities, Puneis a leader in BPO services► Maharashtra offers software products for all Key IT locations in Maharashtra industry verticals such as Automotive, Engineering, Automation, Networking and Nashik Hardware, Electronics, Energy, Telecom, Oil and Aurangabad Petroleum, Hospitality, Healthcare, Financial Thane Services, Logistics, Retail, e-Governance, Mumbai Pune Education etc. IT Companies present in Maharashtra Kolhapur► The majority of revenue for the State comes Number of IT / ITeS companies registered with from US and Europe City STPI as on March 2008► Aurangabad, Nagpur and Nashik are the Mumbai 800 emerging IT centres in Maharashtra Pune 471 Nagpur 72► Infosys Pune complex is the second largest Aurangabad 15 facility worldwide Nashik 11 Kolhapur 3
  14. 14. Maharashtra IT/ITES Industry Value Chain IT Industry Value Chain Research & Product / Software Consulting Outsourcing Development Development ▪ Mumbai ▪ Pune ▪ Pune ▪ Mumbai ▪ Mumbai ▪ Mumbai ▪ Nashik ▪ Pune ▪ Thane ▪ Pune ▪ Nagpur ▪ Nashik ▪ ThaneKey Strengths:► 32 public IT park has been established by MIDC and CIDCO and four are in pipeline, with 4351 units and an investment of INR 18000 crore► Maharashtra has 425 private IT park, out of which 88 are functional► The prime IT/ITeS cluster are Greater Mumbai, Pune,Thane and Nashik► Maharashtra has a strong presence across the value chain owing to its strong skilled manpower, powerful venture capital interest, horizontal and vertical expansion of existing customer base into new markets, cost competitiveness, superior infrastructure and Govt. support
  15. 15. Advantage Maharashtra Highest FDI in the Country Single Window Clearance Mechanism Investor Facilitation Cell 59 IT/IT Enabled Well established IT Highest contribution to India’s GDP 425 IT parks Hubs – Pune, SEZ Mumbai Strong presence across value chain Advanced infrastructure Presence of all top IT, BPO players IT/ITeS Policy 2009 and superior connectivity India’s financial hub Strong Investor Abundant Land BankBusiness friendly Expanding Service After Care andenvironment Line Strong Infrastructure support practices Worldwide Connectivity (Ports,Airports) Abundant Natural Resources Skilled Manpower and premiere R&D Centers Advantage Maharashtra
  16. 16. MAHARASHTRA – Policy& Framework
  17. 17. Maharashtra IT Policy Support IT/ITeS Policy - 2009 Package Scheme of Incentives, 2007 Key features of the policy Key features of the PSI ► Additional FSI for IT parks ►100% waiver of Stamp Duty ► Recreational, residential and other support ►Exemption from Electricity Duty facilities ►Interest subsidy ► Eligible IT-ITES units covered under PSI will ►IPS (Industrial Promotion Subsidy) be exempt from payment of Electricity Duty ►Refund of Octroi / Entry Tax in lieu of Octroi ► IT/ITES units will be supplied power at ►Special Incentives for Units coming up in the industrial rates low Human Development Index Districts of : ► Property tax shall be levied on IT-ITES units Gadchiroli, Yavatmal, Jalna, Nandurbar, at par with residential rates Washim, Dhule, Nanded, Osmanabad, Buldhana, Chandrapur ► VAT on sale of IT products will generally be charged at the minimum floor rateSource: IT/ITeS policy 2009 Source: PSI, 2007
  19. 19. Intellectual Capital of Maharashtra Maharashtra IT/ITes Industry Manpower IT Manpower in Maharashtra Sector Institutio Capacity Admitted► Maharashtra offers a sound educational ns Students Infrastructure With maximum number of universities in the country Engineering 774 2,61,625 2,09,025 Management 366 34,995 28,644► National Centre for Software Technology Sciences (NCST) an autonomous R&D Organisation of Industrial Training 726 1,49,156 1,34,712 the Department of Electronics, Government of Institutes India is present in the State Source: Maharashtra Economic Survey 2010-11► Indian Institute of Technology offers varied Key IT Training Institutes in Maharashtra courses for IT sector Centre for Development of Advanced Computing► NIIT, a part of the HCL group, has alliance with Microsoft Corporation as training partner in System Research Institute India for training in Microsoft technologies and products and has its institutes at various location in Maharashtra Information Systems Audit and Control Association, (ISACA)► Xavier Institute and Narsi Monji Institute of Management Studies imparts training on Centre for Materials for Electronics Technology Microsoft products and technologies Indian Institute of Science Education and Research (IISER)
  21. 21. IT Parks & SEZ in Maharashtra IT Parks in Maharashtra (March 2011) IT SEZ in Maharashtra (March 2011) To Madhya PradeshTo Gujarat 1 SEZ Nagpur -2 1 SEZ To Chhattisgarh Nashik - 4 Thane - 100 Aurangabad - 3 Mumbai - 162 Pune - 153 To Andhra Pradesh 28 SEZ Raigad - 1 Approved & Notified IT SEZ in To Karnataka Maharashtra Vidarbha Region 1 Marathwada Region 1 Total investment in IT Parks To Goa Western Maharashtra INR7750 Crores Region 28•The above figures denote the private IT parks for which Letter of Intent (LOI) Konkan Region 26 is issued as on March 2011 Total 56•Source: Directorate of Industries, Maharashtra Source: Industries Department, Maharashtra
  22. 22. Key Thrust AreasIT/ITeS Industry – Focus Area IT Enabled Services Legal Database processing Data Mining, Data Animation, Visual effects, Warehousing Gaming and Comics IT Hardware IT Software Electronics and Semiconductors IT Ecosystem Information Services Medical Transcription CAD/CAM Services Maharashtra is also promoting ‘Green’ IT and electronic hardware, as well as e-waste recycling with several key initiatives in the State. The State offers various incentives and Digital content development Packaged software support IT Security and IT Risk benefits for the key focus areas. services Management services
  24. 24. Maharashtra – The PowerhouseLeading IT players in Maharashtra Maharashtra has a strong presence with almost all the major IT players in the State.
  25. 25. Success story - Infosys Hinjewadi IT ParkPune Chairman and Chief Mentor, Mr. N.R. Narayan Murthy Infosys Campus Pune“Pune has a credible work culture and offers some of India’s best high- Infosys was thecalibre technical manpower, which is vital for the knowledge-based first occupant in Hinjewadi IT parkindustry. and has theEven MIDC is extremely proactive helpful and customer friendly. The second largest facility worldwideinfrastructure developed by it in the IT Parks are truly world class.”
  26. 26. KEY CONTACTS
  27. 27. Connecting furtherPrincipal Secretary Industries Directorate of IndustriesRoom No. 114, 1st floor, New Administrative Building,Mantralaya Annex, Mumbai 2nd floor Opp. Mantralaya,Maharashtra - 400032 Mumbai - 400 032 Maharashtra Industrial Development Corporation (MIDC)Head office Principal officeMaharashtra Industrial Maharashtra IndustrialDevelopment Corporation Development CorporationUdyog Sarathi, 4(A), 12th floor, World Trade CentreMahakali Caves Road, Complex, 1 Cuffe Parade, Colaba,Andheri(E), Mumbai-400 093 Mumbai -400005