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Mp High Lights


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high lights on MP industrial setup

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Mp High Lights

  1. 1. Madhya Pradesh Industries
  2. 2. Area Developed : 2,492 Hectares Allotted : 1431 Hectares Units established : 575 Major Groups : Tata, Ranbaxy, Eicher, Bridgestone, Hindustan Motors, Kinetic, SRF, S Kumars, Gajra, Nicholas Piramal, Indorama, IPCA, Bhilwara Special Infrastructure : SEZ, Crystal IT Park, Food Park, Apparel Park In a bid to build a competitive environment; industries and their ancillaries would be promoted in clusters based on the availability of raw materials , skilled labour and market potential . Under this Industrial Policy through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs) scheme, the State Government, has identified industrial clusters. Many of the industrial giants have their establishments in these areas, however 44% of developed area is still untapped and open for investment. MPAKVN INDORE AKVN Area Developed : 1,330 Hectares Allotted : 618 Hectares Units established : 286 Major Groups :HEG, Crompton Greaves, P&G, Godrej, Lupin, IFB, Oswal, Nahar Special Infrastructure : ICD, Food Park Area Developed : 273 Hectares Allotted : 115 Hectares Units established : 121 Major Groups : Birla, Jaypee Special Infrastructure : Integrated infrastructure development centres (IIDC) Area Developed : 2,262 Hectares Allotted : 800 Hectares Units established : 326 Major Groups : JK, Surya Roshini, Godrej, Grasim, Cadbury, Hotline, Crompton Greaves Special Infrastructure : ICD, Food Park Area Developed : 790 Hectares Allotted : 125 Hectares Units established : 52 Major Groups : Raymond, Hindustan Petroleum, PBM, Ayur Special Infrastructure : Stone Park, Food Park BHOPAL AKVN GWALIOR AKVN JABALPUR AKVN REWA AKVN Pithampur, Kheda, Dewas, Maksi, Megh Nagar Malanpur, Malanpur Phase II, Banmore, Chainpura, Siddhgawan, Pratappura Rewa, Waidhan Borgaon, Maneri, Purena Mandideep, Pillukhedi, Mandideep Phase II Source: MPSIDC 19 Growth centres 1,360 Total units established 3,089 Hectares Total allotted area 7,147 Hectares Total developed area
  3. 3. Industries
  4. 4. MP <ul><li>Madhya Pradesh is an emerging industrial powerhouse of the country. </li></ul><ul><li>The State houses around 1,800 companies and 19 industrial growth centers (located across 7147 Hectares.) that are close to major cities. This makes good social infrastructure accessible to industrial units. </li></ul><ul><li>Further, there are around 171,000 small-scale industries that contribute significantly to the economy. </li></ul><ul><li>MNCs like Cadbury, Bridgestone, Hindustan Lever, Coke and renowned Indian companies like Ranbaxy, Tata, Grasim, Hindustan Motors, Eicher, Kinetic, Hotline, Raymonds, Lupin, Crompton Greaves, Surya Roshni, Nahar Spinning, Anant Spinning, Godrej, HEG and several other big groups have presence in Madhya Pradesh. </li></ul><ul><li>These companies not only meet local requirements, but also export a variety of products and services to both developed and developing countries. </li></ul>
  5. 5. MP: Investments <ul><li>MP offers an unparallel locational advantage to companies as they incur lower transportation cost for transferring goods to every corner of the country. </li></ul><ul><li>Further, cost of basic requirement such as land, water, skilled manpower is less as compared to other states. </li></ul><ul><li>State has peaceful & conducive atmosphere for industrialization, law and order situation in the state is under control. </li></ul><ul><li>State also allows the industrial units to have captive power plants to produce power as per their requirement. </li></ul><ul><li>The State Government desires to have a higher rate of economic development through rapid industrialization. Some of the key initiatives taken by government recently include: </li></ul><ul><ul><li>New Industrial Policy-2004 </li></ul></ul><ul><ul><li>Madhya Pradesh Trade and Investment Facilitation Corporation (TRIFAC) </li></ul></ul><ul><ul><li>Udyog Mitra Yojana- 2004 </li></ul></ul><ul><ul><li>Industrial Facilitation Council </li></ul></ul><ul><ul><li>Industrial Projects – SEZ, Indore, Food Park, Apparel Parks, etc </li></ul></ul><ul><ul><li>Modernization of Roads and other infrastructure </li></ul></ul><ul><ul><li>Power Sector Reforms </li></ul></ul>Few Large & Medium Projects Under Implementation In US$ Million Investments Location Company 4 Maneri HP Bottling Plant 4 Balaghat MOIL 4 Mandideep Lupin 7 Pilukhedi Coca Cola 7 Pithampur  Caparo Engineering 7 Nimrani Maral Overseas 9 Malanpur Escorts 18 Balaghat Hindustan Copper 19 Pithampur Pratibha Syntex 22 Banmore JK Industry 22 Pilukhedi  Enbee 24 Pithampur Eicher Group 24 Pithampur  Biofill Pharma 111 Malanpur LG Hotline 111 Mandideep HEG Ltd. 261 Chainpura STI Power 542 Bina  Bina Thermal 1,267 Bina BORL
  6. 6. Thrust Areas <ul><li>Industry in Madhya Pradesh is largely resource driven, leveraging the state’s natural wealth in the form of limestone, coal, soya, cotton, bauxite, iron-ore, silica etc. Therefore the state has a strong industrial base in sectors like textile, cement, steel, soya processing and optical fibers. </li></ul><ul><li>However, there have been a few exceptions to the resource driven industrialisation and the State as a result of its aggressive incentive policies and strong solicitation/facilitation is developing into a strong base in the Auto, auto ancillary and textile sectors. </li></ul><ul><li>Substantial opportunity would emerge in following sectors. </li></ul>Chemicals Engineering & Electrical Equipment Pharmaceuticals Textiles & Apparels Auto & Auto Components Cement
  7. 7. Cement
  8. 8. Sector Profile: Cement MP: A Preferred Investment Destination Exploring the Opportunities: Project Profiles Way Forward MP is Naturally Strong MP: The Cement Production Powerhouse Cement: Evolving Landscape
  9. 9. MP: The Cement Production Powerhouse <ul><li>M.P. is the third largest producer of cement in the Country. It caters to 13% of the national demand . The State’s rich limestone reserves and the logistical advantages of these sites reduces the overall cement manufacturing & supply chain cost, helping the cement companies to get a higher Return on Investment (ROI). </li></ul><ul><li>At present several major groups such as Birla Corporation, Vikram Cement, Prism Cement, J.P. Rewa, Diamond Cements, & ACC cement are present in Madhya Pradesh. Out of these units J.P. Rewa & ACC are in process of investing US$ 244 million for expanding their production capacities. </li></ul><ul><li>The State also has the appropriate knowledge pool to operate the cement plants. </li></ul>With the expected demand projection and the inherent advantages, MP is likely to attract significant investment in the sector to become the Cement Production Powerhouse of the Country <ul><li>Being centrally located and in proximity to key cement consuming states such as Maharashtra, Uttar Pradesh, Gujarat, Andhra Pradesh etc, cement plants in MP can cater to different regions of the state. Apart from access to large market the centrally located plants benefit in terms of stable market demand. Further as a result of constant demands the state has one of the highest capacity utilisation rates in the Country (around 94%). </li></ul><ul><li>It is estimated that India needs an additional capacity of around 70 MT to meet its domestic demand by 2009. With its inherent advantages in terms of availability of raw material and its cost competitiveness, MP is likely to continue as a leader in cement industry . </li></ul>160 MT 220 MT 130 MT 187 MT 70 Mt of Capacity required to meet domestic demand alone Installed Capacity Requirements: India 2005 2009
  10. 10. MP Is Naturally Strong <ul><li>Madhya Pradesh has a vast reserve of limestone. The total reserves of limestone is 3625.98 mn tonnes spread across the districts of Damoh, Hoshangabad, Mandsaur, Narsinghpur, Rewa, Satna, Panna, Katni, Sagar, Dhar, Khargone, Jhabua, Balaghat, Sidhi and Morena. </li></ul>Availability of high quality limestone for cement production and coal for captive power plants makes Madhya Pradesh an ideal location for cement production. Proportion of Own Power To Purchase (India) Likely To Increase Further <ul><li>In India, energy costs account for 35 per cent of the total production costs. Further, the power costs are high in India and are growing at a rapid rate. The industry is trying to insulate itself against this by setting up captive thermal power plants. The share of energy costs can be reduced to 16-20% if captive power plants are set-up. </li></ul><ul><li>Madhya Pradesh has a several locations (marked in circle) that offer limestone and coal. This provides an excellent opportunity to set-up a captive power plant to ensure regular and cost competitive supply of power. </li></ul><ul><li>The industry is expected to witness a significant boom as several project of similar profile are likely to mushroom near the limestone reserves of the State. </li></ul>Limestone Reserves Coal Reserves
  11. 11. MP : Cement Destination 2.2 Mn Tonnes 4.2 Mn Tonnes 1.55 Mn Tonnes 2 Mn Tonnes 3 Mn Tonnes (Vikram Cements Ltd.) 2 Mn Tonnes (Maihar Cements Ltd.) 1.02 Mn Tonnes (Diamond Cements Ltd.) <ul><li>Most of the leading cement manufacturers of the Country have presence in MP. Seven major Cement plants are operating in the State with the annual installed capacity of 15.97 million tonnes . </li></ul><ul><li>Availability of raw material and investor friendly environment has facilitated several leading players in setting up their shops in the state. Eyeing the potential opportunity, the existing players are proposing to expand their operations in the State. For instance, JP Cements and ACC Ltd. have proposed expansion of around 1.3 mn tonnes each in annual capacity. </li></ul><ul><li>Satna region of MP, has the most number of cement plants in the Country . </li></ul>Installed Capacity Presence of leading cement manufacturers and their expansion plans, are true reflection of investor confidence and the huge potential the State holds for the cement manufacturers.
  12. 12. Way Forward Proposed Projects Considering the present scenario & the availability of raw material, there is a scope of further investment of $2.5 bn* in this sector in the state. <ul><li>M.P. State Industrial Development Corporation has prospected that Damoh-Panna area, and Bela-Pagra of Rewa have limestone deposits of 8 mn tonnes and 20 mn tonnes respectively. </li></ul><ul><li>Besides these areas, the area around Raghurajnagar and Nagod Tehsil of Satna district also have deposits of limestone. </li></ul>Source: Install a Cement plant with an investment commitment of US$ 111 million Grasim New Limestone Area Install Cement unit with installed capacity of 2 million tonnes M/s Rewati Investments Satna Install Cement unit with installed capacity of 2.2 million tonnes JV (SAIL & JAL) Satna Install Cement unit with installed capacity of 2 million tonnes Jaiprakash Associates Ltd. Sidhi Description Player Location
  13. 13. Auto & Auto Components
  14. 14. Sector Profile: Auto & Auto Components Exploring the Opportunities: Project Profiles Offering Specific Incentives M.P.: An Investment Destination Advantage Madhya Pradesh Madhya Pradesh : Auto Hub of India Evolving Landscape
  15. 15. Evolving Landscape <ul><li>The Indian automotive industry has flourished in the recent years. This extra-ordinary growth in the Indian automotive industry has been a result of the increase in the per-capita disposable incomes which has resulted in improvement in the living standards of the middle class. </li></ul><ul><li>Car Companies in India have lined up more than US$ 6.67 Billion investments. </li></ul><ul><li>Most automakers of the world either have active presence in the Country or they source components from Indian component manufacturers. The leading global players such as Hyundai, Ford, Mercedes, Toyota, Suzuki and GM have set up base in India. </li></ul><ul><li>The growth of the industry is primarily driven by the cost advantage of manufacturing components in India, which is typically lower by about 30% as compared to developed countries. </li></ul><ul><li>As the automobile industry has grown and matured, the Indian auto components industry has also grown tremendously, and is rapidly achieving global competitiveness both in terms of cost and quality. </li></ul><ul><li>The Indian automotive component industry has grown at a staggering pace over the last few years. The US$ 8.7 billion industry has registered a 30% jump over last year. The exports have increased from US$ 1 billion in 2003-04 to US$ 1.4 billion in 2004-05. </li></ul><ul><li>Industry observers believe that while Indian automobile market is likely to grow at a measured pace, the auto components industry is poised for a take-off and is one of the handful of industries where India has a distinct competitive advantage. </li></ul>US$ Million India’s Auto Ancillary Exports 4.75 27.57 17.65 7.67 20.58 April- August Full Throttle- Car Sales Have Soared This Year
  16. 16. MP: Auto Hub of India <ul><li>MP has been actively promoting the development of the engineering industry in the state. The state is one of the leaders in auto and auto ancillary industry with around 5 Original Equipment Manufacturers (OEMs) and over 100 auto component manufacturers. </li></ul><ul><li>Madhya Pradesh has an auto component industry of around US$ 306 million.60% of the auto industry in Madhya Pradesh is controlled by Auto component players. </li></ul><ul><li>The State has developed an industrial cluster at Prithampur which provides readily available infrastructure for companies willing to set up manufacturing facilities in the State. The estate is spread over an area of 5,000 hectares. The proposed multi product SEZ is in the vicinity of the industrial estate. </li></ul><ul><li>The state is witnessing an upsurge in investments in the sector. The strategic location, Government cluster development initiatives, skilled workforce are some of the factors that are providing the state a competitive edge over other states. </li></ul>Pithampur Auto Cluster Development The Union government of India has sanctioned an auto cluster in the Pithampur industrial area. The Government of India will grant an amount of US$ 11 million for the purpose. Local industrialists have agreed to contribute US$ 3 million for the project. The cluster would be equipped with the world’s largest testing facility, with capabilities of testing various category of vehicles in different climatic conditions at different stages. The track would also issue certificates for vehicles produced in the Country and abroad. Madhya Pradesh: Competitiveness <ul><li>Strategic location </li></ul><ul><li>Highly productive & disciplined workforce </li></ul><ul><li>Presence of large number of players across the value chain </li></ul><ul><li>Proactive and professional approach of State Government </li></ul><ul><li>Quality network of educational institutions </li></ul>Key Players
  17. 17. Automotive Proving Grounds - Pithampur
  18. 18. Textiles & Apparel
  19. 19. Sector Profile: Textiles Exploring the Opportunities: Project Profiles Offering Specific Incentives M.P.: An Investment Destination Madhya Pradesh’s Inherent Advantages Madhya Pradesh : Emerging Textile Hub of India Textile: Evolving Landscape
  20. 20. <ul><li>India contributes to about 25% share in the world trade of cotton yarn. It is the world’s third-largest producer of cotton and second-largest producer of cotton yarns and textiles. </li></ul><ul><li>Indian textile industry has about 22% to the world spindleage and about 6% to the world rotor capacity installed. It has second highest spindleage in the world after China with an installed capacity of 38.60 Million </li></ul><ul><li>It has the highest loomage (including handlooms) in the world and contributes with a share of 61%. It contributes about 12% to the world production of textile fibers and yarns. </li></ul><ul><li>India is one of the largest consumers of cotton in the world, ranking second to China in production of cotton yarn and fabrics and first in installed spinning and weaving capacity </li></ul><ul><li>Through export friendly government policies and positive efforts by the exporters, textile exports have more than doubled from USD 7.55 billion in 1993-94 to USD 17 billion in 2005-06. </li></ul><ul><li>The ready made garment sector is the biggest segment in the India’s textile export basket contributing over 46% of the total textile exports. </li></ul><ul><li>Export of cotton based items continue to pre-dominate which is natural in view that India is the world’s third-largest producer of cotton </li></ul><ul><li>Exports have grown at an average of 9.47% p.a over the last decade. Textile exports in 2005-06 has gone up to USD 17 billion which is 23% higher than previous year. </li></ul>The industry is poised to play an increasingly important role in global cotton and textile markets as a result of domestic and multilateral policy reform. Indian Production Statistics (2005) <ul><li>About 4% of Gross Domestic Product </li></ul><ul><li>About 14% of total industrial production </li></ul><ul><li>Employs 20% of work force </li></ul><ul><li>About 17% of gross export earnings </li></ul>India’s export of textiles (2004-05) Contribution of Textile Sector Textile Evolving Landscape 4122 Raw cotton 1109 2272 1023 (Mn Kgs) Filament yarn Cotton yarn Production Of Yarn Man-made fibre Production Of Fibers 3290.31 Cotton textiles 13065.24 Total 1314.13 Handicraft , Coir etc 406.82 Silk textile 66.57 Wool & woolen textiles 1948.72 Man-made textiles 6038.69 Readymade garments (Million USD) Commodities
  21. 21. MP Making Businesses Work Process Raw Material Spinning Weave/ Knit Processing Stitching (Garment/ Apparel) Advantage Madhya Pradesh Market <ul><li>Climatic Conducive for cotton production with large varieties available within and surrounding States </li></ul><ul><li>Being centrally located and well connected the raw material can also be brought on short notice from any part of the Country </li></ul><ul><li>Over 40 spinning units </li></ul><ul><li>Over 1.4 million spindles </li></ul><ul><li>The manpower has on the job experience in latest technology </li></ul><ul><li>Several units are available for procurement by investors </li></ul><ul><li>Over 47000 handlooms are installed in MP </li></ul><ul><li>Over 43,000 power looms </li></ul><ul><li>Rich tradition of weaving and knitting </li></ul><ul><li>Several export oriented processing units are present in the state which can be developed further. </li></ul><ul><li>The state has a blend of both new age and traditional processing capabilities essential to promote Indian products internationally. </li></ul><ul><li>MP is renowned for skills of its people in stitching garments. </li></ul><ul><li>Manpower is well trained and is capable of producing world-class garments/ apparels. </li></ul><ul><li>Further, the states strong leather industry is likely to complement the textile industry. </li></ul><ul><li>Strategic central location to develop warehouse </li></ul><ul><li>Well connected with the entire Country through railway network </li></ul><ul><li>Proximity to ports in Maharashtra and Gujarat provide cost competitiveness both for exports and imports </li></ul>Madhya Pradesh Has Strengths Across The Value Chain <ul><li>Availability of skilled manpower at competitive costs </li></ul><ul><li>Government initiatives in terms of proposed apparel parks, fiscal incentives etc would benefit the investors. </li></ul><ul><li>Success Stories: S Kumars, Bhilwaras, Oswals, Maikal, Indo-Rama etc. </li></ul><ul><li>Madhya Pradesh is poised to become the next destination for leading textile companies, who would find market environment conducive to park their investments. </li></ul><ul><li>The state presents a tremendous opportunity by providing significant advantages across the value chain. </li></ul><ul><li>The state has several units in a cluster, which could be acquired and refurbished to provide a quick start to your business. </li></ul><ul><li>In terms of technical manpower as well the state is well placed with over 18,000 technical graduates and an overall and an overall figure of 230,000 graduates add to the workforce every year. </li></ul>
  22. 22. Pharmaceuticals
  23. 23. Sector Profile: Pharmaceuticals M.P.: An Investment Destination Madhya Pradesh : Gaining Momentum Evolving Landscape
  24. 24. <ul><li>The global pharmaceuticals market generated total revenues of USD 534.8 billion in 2005, representing a compound annual growth rate (CAGR) of 7.7% for the five year period spanning 2001-2005. Market size expected to reach USD 767.2 billion by the end of 2010. </li></ul><ul><li>With an estimated market value of USD 8.2 billion (at consumer prices, inclusive of exports) in 2004, India accounts for 2% of the world market for pharmaceuticals. </li></ul><ul><li>According to the global ranking estimates, India ranks as the 4th largest pharmaceutical market in volume terms and the 13th largest market in value terms. </li></ul><ul><li>The significant difference in the value and volume wise rankings of the Indian companies is largely attributed to the prices of drugs manufactured in the Country, which rank among the lowest in the world. With the quality being maintained at par with international standards, India exports drugs to more than 200 countries across the world. </li></ul><ul><li>With formulations contributing to 50% of the exports, India’s pharma exports were approximately USD 3.17 billion. </li></ul><ul><li>Projections of growth of Indian pharma market (exclusive of exports) range from USD 11.9 bn in 2009 to USD 25bn by 2010 </li></ul><ul><li>Reduced growth rate </li></ul><ul><li>Increasing cost of R&D </li></ul><ul><li>Shorter time span for exclusivity </li></ul><ul><li>Fewer block busters </li></ul><ul><li>Price pressure from Generics </li></ul><ul><li>Higher complexity through more number of smaller revenue drugs </li></ul>Evolving Landscape <ul><li>Low-cost, high-quality production </li></ul><ul><li>Large and growing US FDA approved plant capacity </li></ul><ul><li>Synthetic Chemistry talent for early stage compound development </li></ul><ul><li>Low cost of research and world-class testing facilities </li></ul><ul><li>Cost of a research scientist in India is only about 1/6th to 1/4th of that in USA </li></ul><ul><li>Contract Research and Manufacturing (CRAM) </li></ul><ul><li>IT enabled services including clinical/market data analysis </li></ul><ul><li>Clinical Trials: Revenues to grow from $70 million (2002) to $1-1.5 billion by 2010 driven by a 60% cost advantage and large gene pool for trials </li></ul><ul><li>Major opportunities in Biotechnology are in the areas of Bio-informatics, Bio-pharma etc. </li></ul><ul><li>Many international biotech companies like Chiron Corp, GSK and Sigma Aldrich Corp have expressed interest especially in Bio-manufacturinga </li></ul>Challenges faced by Global Companies Today Potential
  25. 25. MP: Gaining Momentum <ul><li>Located at the very heart of India, Madhya Pradesh is the second largest State and is easily accessible from every corner of the Country. </li></ul><ul><li>Madhya Pradesh has a made a lot of progress in the last couple of years and is paving way to be at the forefront of the Pharma industry. </li></ul><ul><li>Major players such as Ranbaxy and IPCA already have a foot hold in the State and are on the road to expansion under the favourable industrial policies and initiatives by the State Government. </li></ul><ul><li>Madhya Pradesh is envisaging a pharma cluster at Indore and has constituted a board for Biodiversity and life sciences under the chairmanship of the Chief Minister. </li></ul><ul><li>Efforts are also being made to establish national level training centres through support of large industrial houses of MP. This would ensure that the State will never be short of professional expertise. This is an added advantage to the investors looking to invest in the in the State as there would be a wide availability of qualified and skilled professionals at a relative low manpower investment cost. </li></ul><ul><li>Nicholas Piramal India Limited (NPIL) is one of the leading pharmaceutical and healthcare company with sales of US$ 290 million in 2005-05. NPIL is ranked fourth in domestic formulations sales and second in total domestic pharmaceuticals sales. </li></ul><ul><li>Its Pithampur plant in Madhya Pradesh is accredited by reputed organisations like Allergan, Novartis, Solvay and IVAX, among others. </li></ul><ul><li>Nicolas Piramal is planning to invest US$ 45 million to enhance its research and development activities besides strengthening its manufacturing facilities </li></ul><ul><li>IPCA Laboratories is one of India's leading pharmaceutical companies with a strong thrust on exports. The Group's principal activities comprise manufacture and distribution of drugs and pharmaceuticals. The products include tablets, capsules, basic drugs, orals, liquids and injectables. </li></ul><ul><li>It has a bulk drugs and formulation unit at Ratlam and a bulk drug facility in Indore in Madhya Pradesh. </li></ul><ul><li>IPCA Laboratories plans to invest US$ 22 million to expand its formulations capacity at Ratlam in Madhya Pradesh . It also plans to invest US$ 14 million in the first phase to set up a new export oriented formulations unit in Indore. </li></ul><ul><li>Ranbaxy is the largest Indian pharmaceutical company by sales. During 2005, its revenue was US$ 813 million while net profit stood at US$ 50 million. Ranbaxy has manufacturing facilities in seven countries (including India), most of which are USFDA approved. </li></ul><ul><li>Ranbaxy is investing US$ 100 million for expanding production capacity of Indian, Brazilian and US manufacturing utilities. </li></ul><ul><li>It has a bulk drug and formulation plant at Dewas in Madhya Pradesh . In the current year Ranbaxy is investing US$ 100 million for expanding production capacity of Indian, Brazilian and US manufacturing units. </li></ul>
  26. 26. MP: Offers The Right Blend <ul><li>By leveraging the existing manufacturing base, a strong health care system along with a low cost resource pool Madhya Pradesh has the potential to further develop the pharmaceutical industry in the State. </li></ul><ul><li>Madhya Pradesh’s network of health facilities comprises 145 hospitals, 343 community health centres, 1,705 primary health centres. It also has 34 Ayurvedic and 4 homoeopathic hospitals. The number of in-patient beds in Madhya Pradesh’s hospitals is 20,839. </li></ul><ul><li>MP has the right blend on freshers and laterals for the pharmaceutical industry. The institutes across the State are well equipped to provided to train manpower in each domain. There are 9 key pharmacy colleges in the state supported by 6 medical colleges and 43 management institutes (including one of the six Indian Institutes of Management at Indore). The laterals have experience of working in India’s leading pharmaceutical companies such as Ranbaxy, Lupin, NPIL, Albert David etc. </li></ul><ul><li>B. R. Natha College of Pharmacy, Mandsaur </li></ul><ul><li>College of Pharmacy, Indore </li></ul><ul><li>Department of Pharmacy, Bhopal </li></ul><ul><li>Dr. Harisingh Gour Viswavidyalaya, Sagar </li></ul><ul><li>Institute of Pharmacy, Gwalior </li></ul><ul><li>R.K.D.F. Institute of Sciences & Technology, Mandideep </li></ul><ul><li>Shri G.S. Institute of Technology & Science, Indore </li></ul><ul><li>V.N.S. Institute of Pharmacy, Bhopal </li></ul>Key Pharmacy Institutes Pass-out ~300 Students Each Year <ul><li>Lupin Laboratories is one of the leading pharmaceutical and healthcare company with sales of US$ 290 million in 2005-06. Lupin is among the few companies from India with global scale manufacturing facilities that measure up to world's best quality standards. </li></ul><ul><li>The focus areas of the company includes anti-Tuberculosis, cephalosporins, cardiovascular, anti-asthma, Non-steroidal anti-inflammatory drugs </li></ul><ul><li>Its Mandideep plant in Madhya Pradesh manufactures cephalosporins, lisinopril etc. . </li></ul><ul><li>The company invested over US$ 178 million in the State and employs over 300 people . </li></ul><ul><li>Lupin Laboratories is expanding its manufacturing plant at Mandideep with an investment of US$ 4.5 million. </li></ul><ul><li>Albert David is one of India's leading pharmaceutical companies in the country with a strong thrust on exports. During the current fiscal year, the company has achieved an excellent annual sales turnover of US$ 19.55 million) and ranks 58th out of 22,000 plus companies competing in the Indian pharma market. </li></ul><ul><li>The Group's principal activities comprise manufacture and distribution of drugs and pharmaceuticals, Disposable Syringes, Oral solids etc. </li></ul><ul><li>It has a syringes unit at Mandideep and a bulk drug facility in Indore in Madhya Pradesh. </li></ul><ul><li>The company invested over US$ 222 million in the State and employs over 175 people . </li></ul>
  27. 27. Sector Profile: Engineering & Electrical Equipments M.P.: An Investment Destination Madhya Pradesh : Gaining Momentum Evolving Landscape
  28. 28. MP: Gaining Momentum <ul><li>Located at the very heart of India, Madhya Pradesh is the second largest and the most easily accessible states in the Country. The State is blessed with natural wealth, and abundant supply of power and people. </li></ul><ul><li>The state has the largest plant of India’s leading engineering company, Bharat Heavy Electricals Limited, (BHEL). The plant had recorded a turnover of US$ 341 million in 2004-05. The profit before tax was also high at around US$ 33.78 million </li></ul><ul><li>An Engineering Cluster is proposed to be established at a cost of US$ 15 million at Govindpura Industrial Estate near BHEL, Bhopal. This will benefit about 445 industrial units in the Estate. </li></ul><ul><li>A common facility and necessary infrastructure will be developed for industries. Industries will have special facilities pertaining to engineering works and power sector related specialization since the site will be in the vicinity of Bharat Heavy Electricals Limited. </li></ul><ul><li>The project will be developed with an estimated cost of US$ 1.53 billion with Central government share of US$ 10.67 million. The project has been given 'in principle' sanction. A company namely Bhopal Clusters of Engineering Organization Pvt Ltd has been formed. </li></ul><ul><li>Some Of The Supporting Factors Assisting Your Business Would Be: </li></ul><ul><ul><li>Skilled Manpower </li></ul></ul><ul><ul><li>Competitive Labour Cost </li></ul></ul><ul><ul><li>English Speaking Population </li></ul></ul><ul><ul><li>Managerial Excellence To Deliver Quality Goods On Time. </li></ul></ul><ul><ul><li>Indigenous Availability Of Raw Materials </li></ul></ul><ul><ul><li>Strategic Location Allowing Exports To Near And Far Countries </li></ul></ul><ul><ul><li>Diversified Industrial Base With Supporting Ancillary Industries </li></ul></ul><ul><li>Established in the late 50’s, Bharat Heavy Electricals Limited ( BHEL ) is, the largest engineering and manufacturing enterprise in India, and one of the leading international companies. </li></ul><ul><li>BHEL’s Bhopal plant is the company’s oldest unit with updated & state-of-the-art manufacturing facilities. </li></ul><ul><li>The product range at Bhopal includes Hydro, Steam, Marine & Nuclear Turbines, Hydro & Turbo Generators, Transformers, Switchgears, Controlgears, Transportation Equipments, Capacitors, Bushings, Electrical Motors, Rectifiers,Oil Drilling Rig Equipments, Battery Powered Vehicles and Diesel Generating sets. </li></ul><ul><li>This unit have been recommended for ISO-14001 certificate for its Environment Management System. </li></ul>Bhopal
  29. 29. Chemicals
  30. 30. Sector Profile: Chemicals M.P.: An Investment Destination Madhya Pradesh : The Land of Opportunity Evolving Landscape
  31. 31. <ul><li>The chemicals and petrochemicals industry is referred to as the &quot;keystone&quot; industry as the rest of the manufacturing sector relies on it. </li></ul><ul><li>The global chemicals and petrochemicals market generated total revenues of USD 1.8 trillion in 2004, representing a compound annual growth rate (CAGR) of 0.2% for the five-year period spanning 2000-2004. </li></ul><ul><li>The Indian chemicals and petrochemicals market grew by 10.1% in 2004 to reach a value of USD 32.4 billion </li></ul><ul><li>The industry is expected to continue its growth performance with a CAGR of 9.2% in the period of 2004-09, as against the global projected CAGR of 3.4% for the same period </li></ul><ul><li>India has a robust base of chemicals and petrochemicals-driven businesses. Though the industry has undergone drastic changes, Indian chemicals and petrochemicals share has been continuously increasing on a constant basis. </li></ul><ul><li>Indian chemical growth would be primarily driven by specialty chemicals and knowledge chemicals </li></ul><ul><ul><li>Specialty Chemicals </li></ul></ul><ul><ul><li>Adhesive sealants </li></ul></ul><ul><ul><li>Catalyst </li></ul></ul><ul><ul><li>Industrial gasses </li></ul></ul><ul><ul><li>Plastic adhesives </li></ul></ul><ul><ul><li>Knowledge Chemicals </li></ul></ul><ul><ul><li>Agro-chemicals </li></ul></ul><ul><ul><li>Pharmaceuticals </li></ul></ul><ul><ul><li>Biotechnology </li></ul></ul>Source: Global Chemicals and Petrochemicals Industry Report, April 2006, Data monitor Evolving Landscape India ranks twelfth in the world for production of chemicals and petrochemicals by volume.
  32. 32. MP: Land of Opportunity <ul><li>Being in the center of the Country MP form the heart of logistic backbone of the Country, which makes it the most preferred location for chemical business. </li></ul><ul><li>Madhya Pradesh has a made a significant progress in the last couple of years and is paving way to be at the forefront of the chemical industry. </li></ul><ul><li>The state currently produces around 350,000 MT of basic chemicals. </li></ul><ul><li>Chemicals is one of the principal industries in Madhya Pradesh in term of net value addition with 14.1% share </li></ul><ul><li>The Potential growth of chemical industry in MP is envisaged at 5 billion in next 10 years. </li></ul><ul><li>The industry is likely to witness a surge in investment once US$ 2.5 billion Refinery is setup at Bina by Bharat Oman Refinery & The Reliance Group. </li></ul><ul><li>With a plant capacity of 6 million tonnes, the project would enable substantial growth of downstream chemical units. </li></ul><ul><li>The government is likely to improve the infrastructure facilities in the area and is also likely to provided fiscal and non fiscal incentives in order to promote the industry. </li></ul>Industry Potential <ul><li>Large and growing domestic market potential due to low per capita consumption of key petrochemical derivatives </li></ul><ul><ul><li>3 kgs. against global average of 17 kgs. for plastics </li></ul></ul><ul><ul><li>4 kgs. against global average of 23 kgs. for polymers </li></ul></ul><ul><li>Good R&D base with access to low-cost, high-quality human resources </li></ul><ul><li>Proven capability for chemical process development </li></ul><ul><li>Major raw materials are available within the Country or readily importable </li></ul><ul><li>SEZs have no import tariffs and provide income tax concessions </li></ul><ul><li>Strategic location: In the heart of the high-growth markets of India, Asia and the Middle East </li></ul><ul><li>Vibrant downstream industry and a large number of manufacturers provide options for joint ventures, alliances and acquisitions </li></ul><ul><li>Major opportunities lie in all segments: Basic, Specialty and Knowledge Chemicals </li></ul><ul><li>A strong global presence in the export of dyes, pharmaceuticals and agrochemicals </li></ul>
  33. 33. MP: An Investment Destination <ul><li>Madhya Pradesh is poised to become the next Chemical destination of India through its infrastructure development strategy and government support to the investors. There are many significant avenues and areas that can be tapped for setting up and scaling up your business operations. </li></ul><ul><li>Some of the other supporting factors assisting your business: </li></ul><ul><ul><li>Central location </li></ul></ul><ul><ul><li>Low set-up costs (Land, building etc) </li></ul></ul><ul><ul><li>Specialized infrastructure </li></ul></ul><ul><ul><li>Availability of skilled manpower </li></ul></ul><ul><ul><li>Low operating cost </li></ul></ul><ul><ul><li>Government support etc. </li></ul></ul><ul><li>To further support your business endeavors Government of Madhya Pradesh has is developing specialized infrastructure in the form of SEZ Indore. Being an industry of economic importance, the Government also provides special fiscal and non fiscal incentives to the units in the state. </li></ul><ul><li>Growing investor confidence and down stream industries of the Bina Refineries are likely to result in mushrooming of chemical units in the state. </li></ul><ul><li>In terms of technical manpower as well the state is well placed with over 18,000 technical graduates and an overall and an overall figure of 230,000 graduates add to the workforce every year. </li></ul><ul><li>Nirma is one of the leading chemical company with sales of US$ 458 million in 2005-06. Nirma is among the few companies from India with global scale manufacturing facilities. </li></ul><ul><li>The focus areas of the company includes soaps, detergents, soda ash Alkyle Benzene etc. </li></ul><ul><li>Its Pithampur plant in Madhya Pradesh is the largest plant in the country which controls 38% market share . </li></ul><ul><li>The company invested over US$ 94 million in the State and employs over 600 people . </li></ul><ul><li>Tata Chemicals Limited is India's leading manufacturer of inorganic chemicals. It also manufactures fertilizers and food additives. Incorporated in 1939, the company has an annual turnover of over US$ 667 mn and is part of the US$ 14.25 bn Tata Group, India's foremost business conglomerate </li></ul><ul><li>TCL manufactures a wide range of high-quality and competitively priced products, including soda ash, sodium bicarbonate, salt, caustic soda and urea. </li></ul><ul><li>It has a 36,000 MPTA unit at Pithampur in Madhya Pradesh. </li></ul><ul><li>The company invested over US$ 69 million in the State and employs over 200 people . </li></ul>
  34. 34. Power
  35. 35. Sector Profile: Power Key Policy Initiatives India’s Power Sector: Opportunities Abound Way Forward M.P.: An Investment Destination Advantage M.P. Location Analysis M.P.: Power House of India Power: Backbone of the Indian Economy
  36. 36. Power : Backbone of Indian Economy <ul><li>India’s power industry is growing faster as compared to most of the other countries. In the last decade with substantial capacity addition, India has moved to 5th rank from 8 th in terms of generation capacity globally. </li></ul><ul><li>The country has installed generation capacity of 126 GW as on July 2006 , and a transmission & distribution network of more than 6.3 million circuit kms (2004). </li></ul><ul><li>India consumes about 3.7% of the world’s commercial energy and is ranked 5th largest consumer of energy in the world. </li></ul><ul><li>India’s power generation is largely coal dependent with 55% share in the total capacity mix. </li></ul><ul><li>With India’s booming economy and vibrant industrial scenario, per capita consumption of power had almost doubled from 350 units in 1998 to over 600 units in 2005 and is further expected to reach 1000 units in 2012 . (source: IBEF) </li></ul><ul><li>With the targeted GDP growth rate of over 8%, energy demand is expected to grow at the rate of 5.2% annually. To support this the power supply of the country needs to be augmented by 10% annually. </li></ul><ul><li>The mismatch in energy demand and supply in the country had resulted in the increased energy shortage from 27 BU in 1995 to 80 BU in 2005. </li></ul><ul><li>Peak demand is expected to increase by 77% to 157,107 MW by 2012. Also the energy requirement is expected to increase by 274% to 975,222 MU by 2012. </li></ul>3 rd Largest Consumer in Terms of Energy Demand mtoe Source: IBEF Report, Ministry of Power (CEA) Fact Sheet Energy Generation Bn KWh 2005 Primary Energy Consumption Installed Capacity Mix
  37. 37. India’s Power Sector - Opportunities Abound <ul><li>The Government envisages to provide power to all the households under its ambitious plan “Electricity for all villages by 2007” and “ Power for all by 2012”. The mission aims at enhancing the installed capacity upto 200,000 MW by 2012, accompanied by an increase in transmission and distribution network. </li></ul><ul><li>The investment required in this regard in the sector is estimated to be over USD 200 bn . Almost 50% of this amount would be required for generation projects alone. The scale of investment required in power sector along with the need of advanced technical inputs, has carved out a significant role for private players in power sector. </li></ul><ul><li>Nearly 5000 MW has already been added by the private sector under the 10th five year plan. It is expected to contribute 11,912 MW during the 11th plan from 2007-12. </li></ul><ul><li>Government has initiated a string of reforms by enactment of Electricity Act, 2003 to attract foreign and private investment in the power sector. From allowing FDI upto 100% via the automatic route in all the segments (generation, transmission and retail distribution), to extending tax holiday for mega power projects, the government is keen to create an investor’s friendly environment. </li></ul>Generation Share Mix Given the projected demand scenario coupled with favorable investment policies, the sector offers huge opportunities for foreign and private players. Opportunities for Private Investors Generation Share Mix Capacity Addition Plan Period Source: Ministry of Power (CEA) 2006 2012 126838 MW 200000 MW Projected Generation Capacity
  38. 38. Location Analysis Power Generation Stations in M.P. <ul><li>The State has following power generation units: </li></ul>2.32 million 1.82 million 2.40 million No. of Customers The domestic consumption and small scale industries drives the sales in this region. 5484 MkWh Central Discom (Bhopal, Gwalior) Presence of number of cement and cable factories in the region leads to high energy sales. 5548.31 MkWh East Discom (Jabalpur, Rewa, Sagar) The Discom contributes to highest energy sales in M.P. This is due to the highly developed and growing industry in and around Indore region. Further the establishment of SEZ would also contribute to sales. 7392.59 MkWh West Discom (Indore, Ujjain) Growth Drivers in the Region Energy Sales Classified Regions in M.P. 8-10 plants are located near Pench, Banas, Gandhi Sagar and other rivers. 575 575 MPPGCL Hydel Power Plant Gandhi Sagar, Ranapratap & Jawahar Sagar, Rajghat, Pench 322.17 591 Intrastate Project 26.7 2450 2272.5 Installed Capacity (MW) - 1826.5 2147.5 MP’s Share (MW) Small wind power, biomass based plants are set-up in Dewas, Indore, Bhopal etc Non-Conventional Energy Plants Indira Sagar & Sardar Sarovar Joint Venture Project 3 major plants located in Satpura, Amarkantak and Umaria where vast coal reserves are available. Locations MPPGCL Thermal Power Plant Power Plant
  39. 39. <ul><li>The central government is setting up Ultra Mega Power Projects 5 locations in the country. </li></ul><ul><li>The project is first initiated in MP and is at an advanced stage of establishment . </li></ul><ul><li>Sasan in M.P ., a pithead location based on domestic coal availability (while other proposed plants would be imported fuel based) is identified for setting up this project. </li></ul><ul><li>It is a large project of 4000 MW at a single location thereby ensuring economies of scale. </li></ul><ul><li>Project would require an investment of about USD 3.3 billion . </li></ul><ul><li>The project would utilize super critical technology to ensure higher efficiency and lower CO2 emissions </li></ul><ul><li>The projects would be awarded to developer through tariff based competitive bidding to ensure cheaper power. </li></ul>Ultra Mega Project in M.P. Major private players such as Reliance, Essar and Jaypee Group have acknowledged the potential of M.P. and have proposed investment plans in the State. MP: An Investment Destination Thermal Power Projects - Shahdol Reliance Energy Coal Bed Methane 13.5 MW Hoshangabad Tawa HEP (M/s Hindustan Electro Graphite) 1x20 MW Shivpuri. Marhikheda hydro project, extension, Hydel Power Projects 1000 MW Siddhi Jaypee Group 1000MW Mahan coal field at Sidhi-Singrauli fields Essar Group Project, 2X500 MW Purni, Dist. Khandwa Malwa TPS, Up-Coming Projects In M.P. (Indicative)
  40. 40. Thank you <ul><li>THANK YOU </li></ul>