Madhya Pradesh: Means Business - PowerPoint PPT Presentation

1 / 56
About This Presentation
Title:

Madhya Pradesh: Means Business

Description:

Industries Madhya Pradesh: Means Business Source: India contributes to about 25% share in the world trade of cotton yarn. It is the world s third-largest producer ... – PowerPoint PPT presentation

Number of Views:1059
Avg rating:3.0/5.0
Slides: 57
Provided by: mpnricent
Category:

less

Transcript and Presenter's Notes

Title: Madhya Pradesh: Means Business


1
Madhya Pradesh Means Business
Industries
2
Overview
Overview
Madhya Pradesh (MP) State that means business
  • MP is the second largest State in the Country
    stretching over 308,000 sq kms.
  • The State is blessed with large mineral resources
    of coal, diamond, limestone, methane etc.
  • MP is among the top 4 states of the Country for
    industrial investments.

Economic Snapshot
Madhya Pradesh is emerging as a key growth center
for the Country
  • Per capita GSDP USD 369
  • Manufacturing sector USD 8.5 bn
  • (Registered Unregistered)
  • Gross state domestic product (GSDP) USD
    23,983.63 Mn
  • Average growth rate 5.5 per annum

Advantage MP
Madhya Pradesh has one of the upcoming industrial
base in India
  • The State is centrally located
  • Investor friendly Government policies
  • Total electricity generation capacity
    6,449.25 MW
  • Indias first greenfield SEZ
    Indore SEZ
  • Industrial Centers 8

Power
Electricity generation capacity at present is
6,449.25 MW and estimated to rise to a surplus in
2008-09
  • MP is rich in low grade coal suitable for power
    generation.
  • Potential of hydro-energy generation.
  • Installed power capacity (MPs share)
  • Hydel Power Generation 852.7 MW
  • Thermal Power Generation 2,147.5 MW

Ministry of Power (powermin.nic.in)
Source Indiastat.com (as on 23 Feb 2006)
3
Enabling Infrastructure
  • The State is well connected with the rest of
    India with almost 425 trains passing through the
    State on a daily basis. Of these 175 trains pass
    through the State capital Bhopal alone.

MP IS CENTRALLY LOCATED AND WELL CONNECTED WITH
ALL MAJOR CITIES IN INDIA
RAILWAY NETWORK
  • 25 airstrips.
  • Convenient air links from key Indian cities like
    Delhi Mumbai to Bhopal, Jabalpur, Gwalior,
    Indore and Khajuraho.
  • 5 operational airports.
  • Indore airport has the capability of handling
    international cargo.
  • An international airport proposed in Bhopal.

GWALIOR
KHAJURAHO
AIRPORTS
INDORE
BHOPAL
JABALPUR
  • The total length of roads spanning MP is 67,600
    kms.
  • National highways of 5,200 kms run through the
    State.
  • 18 National highways including trunk routes of
    Delhi-Mumbai, Delhi-Chennai, Delhi-Bangalore,
    Delhi- Hyderabad.
  • The total length of State highways in the State
    is 9,885 kms.
  • Convenient linkages to western ports i.e. Kandla
    Port, Jawahar Nehru Port Trust.

ROAD NETWORK
Source Department of Road Transport Shipping
(morth.nic.in)
Source www.destinationmadhyapradesh.com
4
Madhya Pradesh A Preferred Investment Destination
31 of the State under forest cover with a
largely unexploited species of rare, valuable
medicinal- herbal plants
Over 2,000 kms of roads being developed with
Private Partnership (BOT)
Offers diverse tourists destinations catering to
various segments of tourism such as religious
(Bhojpur), eco/ adventure (Panchmari), heritage
(Sanchi, Khajuraho) tourism etc.
Indias 1st operational Greenfield SEZ at Indore
Third largest producer of cement in India
Over 100 agricultural farms with an area of over
20,000 acres is available on lease to investor
Favourable climatic conditions for cotton and
over 40,000 power-looms are driving the textile
industry
Various blocks available for power, cement, iron
and steel units
Largest producer of pulses and oilseeds in the
Country (75 of soyabean production)
Over 18,000 technical graduates and 230,000
graduates add to workforce each year
12 blocks with reserves totalling 2,585 million
tons of coal has been identified
Over 144 BCM of coal bed methane reserves
available
Availability of coal and natural gas (G.A.I.L
pipeline) along with support from Government to
make investment in Thermal Power Plants lucrative
Source www.mpsidc.org Brochure MP Means
Business
5
MP The Right Place with the Right Environment
Savings in Office Space Rates (A comparison of
rates in Central Business Districts)
DESTINATION MADHYA PRADESH
Fastest mover in overall performance among the
big States in the Country.
Fastest mover in agriculture
Fastest mover in infrastructure development.
Bhopal and Indore have substantial cost
advantages, even when compared to other Tier III
and IV cities.
Savings in Land Cost
Ranks 2nd in terms of governance.
(Estimated Values for Multi-product SEZs)
Ranks 3rd in terms of law order
Cost of skilled labour is USD 2.4/day vis-a-vis
USD 3.5 USD 4.0/day in metros
The cost of land is one of the lowest in the
Country. Even central hubs such as Indore and
Bhopal fare well against other cities in terms of
low land cost.
MP is centrally located. The State is at an easy
distance from all the key consumer markets in the
Country.
Fastest mover is the State where the rate of
improvement between 2003 2006 was greater than
that between 1991 2003
Source (Reference RK Swamy)
- Distances rounded off
Source India Today (September 06 Issue)
6
Industrial Policy Catalyst for the Investments
  • The Government of MP has devised an investor
    friendly industrial policy, which is aimed at
    achieving global competitiveness. The policy
    emphasizes on industrial growth in the state
    through adopting cluster approach, establishing
    specialized infrastructure and offering
    favourable incentives.
  • The main thrust of this policy is
  • Establishment of a Madhya Pradesh Trade and
    Investment Facilitation Corporation which would
    take decisions about rationalization of taxes,
    facilities of mega projects and other related
    matters.
  • Enacting an Industrial Facilitation Act and to
    change the rules of business with a view to make
    single window system decisive and result
    oriented.
  • Developing infrastructure for supporting the
    identified industrial clusters
  • Reviving closed down/ sick industrial units by
    granting special packages.
  • Attractive incentive schemes.

SPECIAL INCENTIVES
  • Special package for Mega Projects on project
    basis by apex level investment promotion
    empowered committee headed by the Chief Minister.
  • Industrial investment promotion assistance 50
    to 75 of commercial tax for 3-10 years
  • Concessional registration charges and stamp duty
    exemption for Term Loans.
  • Interest subsidy on term loan for 5 years _at_ 3
    to 5.
  • For thrust sector industries, 25 capital subsidy
    would be provided limiting up to a maximum of USD
    56,000
  • Land on 75 concessive rate for Mega Projects
    limited to USD 4.4 million.
  • Entry tax exemption for 5 years.
  • 5 years electricity duty exemption on captive
    power generation
  • 15 capital subsidy to SSI up to USD 33,000 in
    backward areas
  • Infrastructure grant up to USD 0.22 million crore
    for developing private sector industrial parks
  • Partial reimbursement for Project report, ISO
    Certification, Patent and Technology Purchase cost
  • CLUSTER APPROACH
  • Indore Pharmaceutical, Textile, Food
    Processing, IT, Auto Components
  • Bhopal Engineering, Biotechnology, Herbal, IT,
    Food Processing
  • Jabalpur Garment, Mineral, Forest Herbal,
    Food Processing
  • Gwalior Electronics, IT, FMCG, Engineering,
    Food Processing
  • Rewa Refractories, Lime Stone, Forest Based
  • Sagar Mineral Processing

SPECIALIZED INFRASTRUCTURE
7
Doing Business Made Easy Through MPAKVN
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.
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 273 Hectares Allotted 115
Hectares Units established 121 Major Groups
Birla, Jaypee Special Infrastructure Integrated
infrastructure development centres (IIDC)
Area Developed 790 Hectares Allotted 125
Hectares Units established 52 Major Groups
Raymond, Hindustan Petroleum, PBM, Ayur Special
Infrastructure Stone Park, Food Park
Area Developed 1,330 Hectares Allotted 618
Hectares Units established 286 Major GroupsHEG,
Crompton Greaves, PG, Godrej, Lupin, IFB, Oswal,
Nahar Special Infrastructure ICD, Food Park
BHOPAL AKVN
GWALIOR AKVN
JABALPUR AKVN
REWA AKVN
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
Malanpur, Malanpur Phase II, Banmore, Chainpura,
Siddhgawan, Pratappura
Rewa, Waidhan
INDORE AKVN
Mandideep, Pillukhedi, Mandideep Phase II
Borgaon, Maneri, Purena
Pithampur, Kheda, Dewas, Maksi, Megh Nagar
Source MPSIDC
8
Industries
9
MP The Emerging Power
  • Madhya Pradesh is an emerging industrial
    powerhouse of the country.
  • 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.
  • Further, there are around 171,000 small-scale
    industries that contribute significantly to the
    economy.
  • 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.
  • These companies not only meet local requirements,
    but also export a variety of products and
    services to both developed and developing
    countries.

10
MP Attracting Investments
In US Million
  • MP offers an unparallel locational advantage to
    companies as they incur lower transportation cost
    for transferring goods to every corner of the
    country.
  • Further, cost of basic requirement such as land,
    water, skilled manpower is less as compared to
    other states.
  • State has peaceful conducive atmosphere for
    industrialization, law and order situation in the
    state is under control.
  • State also allows the industrial units to have
    captive power plants to produce power as per
    their requirement.
  • 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
  • New Industrial Policy-2004
  • Madhya Pradesh Trade and Investment Facilitation
    Corporation (TRIFAC)
  • Udyog Mitra Yojana- 2004
  • Industrial Facilitation Council
  • Industrial Projects SEZ, Indore, Food Park,
    Apparel Parks, etc
  • Modernization of Roads and other infrastructure
  • Power Sector Reforms

Few Large Medium Projects Under Implementation
11
Enabling Infrastructure
  • State Government is committed to support the
    investors provide them a hassle free atmosphere
    in the Government machinery. The state has taken
    several initiatives to promote investments in the
    state by creating enabling infrastructure. Some
    of the key initiatives are highlighted below.
  • A Special Economic Zone at Indore is being
    established in 1038 hectares of land with the
    investment of US 222 million, has become
    operational.
  • 8 IIDs (Integrated Infrastructure Development
    Centre) are being setup at Nandantola, Nimrani,
    Jagga Khedi, Lamtara, Naogaon, Sindiya,
    Pratappura, Jaderua
  • 165 Industrial Areas with basic infrastructure
    facilities are functional.
  • Investment Highlights
  • 217 proposals of foreign direct investment with
    an investment of US 1.3 billion are cleared by
    GOI for M.P.
  • 207 letter of Intent with a proposed investment
    of US 804 million are cleared by GOI for M.P.
  • 1978 Industrial Entrepreneurs Memorandum have
    been issued by GOI in favour of industrial
    groups who have shown interest to invest in M.P.
    with a proposed investment of US 14.43 billion.

M.P. SPECIALIZED INFRASTRUCTURE
Growth Centres Integrated Infrastructure
Development Centers Food Parks SEZ Indore Stone
Park
Crystal IT Park Apparel Parks Diamond Parks Agri
Export Zones
ESTABLISHED
PROPOSED
12
SEZ Advantage
  • Madhya Pradesh Government has adopted the SEZ
    policy for developing Special Economic Zones in
    the state. The SEZs, earmarked as duty-free
    enclaves, aim at promoting rapid industrial
    development and employment generation. The
    approved policy regime includes
  • Exemption of all state and local taxes
  • Exemption from stamp duty and registration fees
  • Grant of labour, energy, environment, industrial
    health and safety related permits and approvals
    through a dedicated single window mechanism
  • Exemption from electricity duty cess and any
    other tax or levy on sale of electricity for self
    generated and purchased power.
  • Expeditious process for land acquisition to set
    up SEZs

Common Incentives
FOR SEZ UNITS
FOR DEVELOPERS OF SEZ S
  • Indirect Tax Incentives
  • Nil customs duty
  • Nil excise duty
  • Exemption from central sales tax
  • Exemption from service tax
  • Exemption from securities transaction tax
  • Income Tax Incentives
  • 100 tax holiday for a period of any 10
    consecutive years out of 15 years beginning from
    the year in which the SEZ is notified
  • Exempt from dividend distribution tax
  • Long-term capital gains arising on transfer of
    shares in developer company tax exempt
  • No minimum alternate tax (MAT)
  • Income Tax Incentives
  • 15 year corporate tax holiday on export profit
    100 for initial 5 years and 50 for the
    subsequent 5 years 50 of reinvested reserves for
    the balance 5 years
  • Other Benefits
  • Duty free procurement of capital goods (including
    second hand capital goods), raw materials and
    consumable spares from domestic market
  • Full freedom for sub-contracting labour
  • Facility to realize and repatriate export
    proceeds within 12 months
  • Facility to retain 100 foreign exchange receipts
    in the export earners foreign currency account
  • SEZ units will be eligible to obtain clearances/
    permissions from different departments under
    single agency clearance system
  • SEZ authority will ensure continuous and good
    quality of power supply
  • M.P. has liberal labor policy providing complete
    flexibility in SEZs
  • SEZ Development Committee monitors infrastructure
    development for each SEZ
  • Other Benefits
  • Full freedom in allocation of developed plots to
    approved SEZ units on purely commercial basis
  • Full authority to provide services like water,
    electricity, security, restaurants and recreation
    centres on commercial lines
  • No net foreign exchange earning requirement
    imposed

Source Ministry of Commerce and Industry,
Department of Commerce
13
Thrust Areas
  • Industry in Madhya Pradesh is largely resource
    driven, leveraging the states 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.
  • 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.
  • Substantial opportunity would emerge in following
    sectors.

14
Cement
15
Sector Profile Cement
16
Cement Evolving Landscape
  • India is the second largest producer of cement in
    the world after China. The Indian cement
    industrys capacity as on March 2005 was around
    160 mn tonnes (including the mini cement plants).
    It consists of over 54 cement players and more
    than 129 manufacturing plants and is highly
    fragmented and regional in nature.
  • Its estimated market size in value terms is
    around US 8.89 billion and around 130 mn tonnes
    per annum (mtpa) in volume terms. It owes its
    regional nature to the concentration of cement
    plants near the clusters of limestone reserves,
    located only in few states. This has led to a
    surplus situation in some regions and shortages
    in others.

India A Major Consumer of Cement
2004
  • India is one of the fastest growing markets for
    cement 7.2 CAGR (2000-01 to 2004-05). The
    demand in the Country is riding high on the
    continuing growth in all the sectors especially
    in the IT/ITeS, Hospitality industries which in
    turn has driven the retail, real-estate and
    infrastructure boom.

Key Drivers of Growth
  • Strong housing demand
  • High level of commercial construction activity
  • Increased government focus on infrastructure
    spending
  • Higher investment in industrial projects
  • Even though industry has huge potential, it faces
    certain challenges, for instance, the high power
    and fuel costs and erratic power supply in most
    of the states is affecting the companies.

Hence, most companies have opted to set up their
own captive power units to get a regular supply
of power and optimise costs.
The industry is not only looking for locations
with availability of limestone for production of
cement, but also for availability of coal for
their captive power plants
17
MP The Cement Production Powerhouse
  • M.P. is the third largest producer of cement in
    the Country. It caters to 13 of the national
    demand. The States 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).
  • 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.
  • The State also has the appropriate knowledge pool
    to operate the cement plants.

Installed Capacity Requirements India
220 MT
70 Mt of Capacity required to meet domestic
demand alone
187 MT
160 MT
130 MT
2005
2009
  • 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).
  • 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.

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
18
MP Is Naturally Strong
  • 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.
  • 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.
  • 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.
  • 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.

Proportion of Own Power To Purchase (India)
Likely To Increase Further
Availability of high quality limestone for cement
production and coal for captive power plants
makes Madhya Pradesh an ideal location for cement
production.
19
Add-ons to Natural Advantage
  • With land rates being as low as US 2 per sq mt
    in the industrial belts of Rewa, MP has the
    lowest cost of land in the Country.
  • The key cement markets are in close proximity to
    MP and are well connected through railway lines
    and roads. This ensures high and sustained demand
    of cement produced in these plants.
  • MP also has a strategic locational advantage as
    some of the key cement consuming centers like
    Kanpur, Nagpur, Patna, Nasik etc are in close
    proximity to its limestone reserves. Since,
    freight expenses form 16-22 of the operating
    costs the proximity to these markets would serve
    as an edge in the long run.
  • Further, the largest cement consuming states of
    Maharashtra and Uttar Pradesh are deficient in
    cement as they have only 1.9 and 1 of the total
    limestone reserves of the country.
  • Even today around 25 of the cement produced in
    the central India is exported in surrounding
    regions of North, East and West. With the rising
    industrial and infrastructural activity expected
    to happen both within the state and its
    surrounding regions, the state holds a huge
    potential for cement manufacturers

Cement Movement Across The Country 2004-05 (MT)
Destination
Source
20
MP A Preferred Investment Destination
Installed Capacity
  • 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.
  • 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.
  • Satna region of MP, has the most number of cement
    plants in the Country.

2 Mn Tonnes
4.2 Mn Tonnes
2 Mn Tonnes
(Maihar Cements Ltd.)
1.55 Mn Tonnes
2.2 Mn Tonnes
1.02 Mn Tonnes
3 Mn Tonnes
(Vikram Cements Ltd.)
(Diamond Cements Ltd.)
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.
21
Way Forward
Proposed Projects
  • 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.
  • Besides these areas, the area around
    Raghurajnagar and Nagod Tehsil of Satna district
    also have deposits of limestone.

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.
Source www.destinationmadhyapradesh.com
22
Auto Auto Components
23
Sector Profile Auto Auto Components
24
Evolving Landscape
  • 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.
  • Car Companies in India have lined up more than
    US 6.67 Billion investments.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.

Full Throttle- Car Sales Have Soared This Year
7.67
17.65
27.57
4.75
20.58
April- August
Indias Auto Ancillary Exports
US Million
25
MP Auto Hub of India
  • 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.
  • 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.
  • 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.
  • 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.

Key Players
Madhya Pradesh Competitiveness
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
worlds 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.
  • Strategic location
  • Highly productive disciplined workforce
  • Presence of large number of players across the
    value chain
  • Proactive and professional approach of State
    Government
  • Quality network of educational institutions

26
Automotive Proving Grounds - Pithampur
  • Area of Land 4,000 Acres

Project Implementation Schedule
  • Proposed Facilities-
  • High Speed Test tracks
  • Oval shaped test tracks at the outer boundary
  • Two straights of 3500 meters Curves of radius
    100m each
  • Maximum testing speed of 350 Km/ hr
  • Dynamic Platforms
  • Dynamic Area of 150 meters radius
  • Two acceleration lanes of 1000m
  • Testing speed more than 200 km/hr
  • Straight Line Braking
  • Four different braking surfaces
  • Low with basalt tiles 250 m long
  • Low with ceramic tiles 250 m long
  • High (Asphalt) 200 m long
  • Acceleration lane length of 1000 m
  • High speed circuit
  • Gradient Test Tracks
  • Braking test tracks
  • External noise test track
  • Accelerated fatigue
  • Gravel track
  • Off road track
  • Dry Handling Track
  • Comfort Track
  • Buildings
  • General Roads
  • Vehicle Dynamics Lab
  • Power train lab
  • Wet skid pad
  • Sustainability track for trucks

Phase I August 2009
Phase II October 2010
  • Exemptions-
  • Registration Fees Stamp Duty
  • Sales Tax
  • Entry Tax,
  • Octroi,
  • Works Contract Tax
  • Property Tax
  • Other Local taxes

27
Automotive Proving Grounds - Pithampur
28
Advantage MP
India- The Emerging Power
World is looking at India
  • The global automotive parts industry has
    undergone a sea change over the past decade.
    Consolidation and restructuring have accelerated
    with the opening of new and increasingly
    important markets.
  • The search for scale and scope economies by large
    manufacturers and the difficulty of smaller
    manufacturers to sustain themselves in the
    investment race have led to increased outsourcing
    to countries like India
  • Suppliers are diversifying geographically,
    increasing research and development, and entering
    into joint ventures in an effort to seek more
    module contracts.
  • The world is also witnessing mushrooming of OEMs
    in India, China, Thailand etc.
  • With cost reduction and precision engineering
    being the mantra for most OEMs India is all
    set-to become the Auto component supplier of the
    world.
  • Following the Countrys WTO commitments, the
    Government announced the Auto Policy of 2002,
    aimed at developing India as a manufacturing and
    export base for small cars and auto ancillaries.

Pithampur- The Auto-Auto Component Hub of India
  • Pithampur is an industrial estate spread over
    5000 hectares of Madhya Pradesh, India.
  • Pithampur is a hub for the automobile
    manufacturing industry and in addition to units
    such as Eicher Motors, Kinetic Honda, Hindustan
    Motors and Bajaj Tempo Ltd.
  • With 5 OEMs ( plus 2 proposed) and over 100
    component manufacturers, Pithampur is an ideal
    location for Auto and Auto component industry

Madhya Pradesh- Strategically Placed For Auto
  • Being centrally located and in close proximity to
    key Indian cities MP is the ideal location for
    Auto-Auto Ancillary industry.
  • Specialised infrastructure in a cluster and
    government support have enabled MP to surge ahead
    of other states.

29
Offering Specific Incentives
  • Following the Countrys WTO commitments, the GoI
    announced the Auto Policy of 2002, aimed at
    developing India as a manufacturing and export
    base for small cars and auto ancillaries.
    Accordingly, the policy enumerated several
    measures to develop the automobile market,
    including
  • Removal of the clause on minimum foreign direct
    investment
  • Removal of earlier stipulations on indigenisation
    and import-balancing requirements
  • Permitting foreign automobile manufacturers to
    set up wholly-owned subsidiaries in India,
    without requiring approval from the Foreign
    Investment Promotion Board
  • Specific fiscal incentives for cars less than 3.8
    meters in length, to enable India to emerge as
    the Asian base for the export of small cars and
    multi-utility vehicles
  • Incentives to manufacture automobiles using
    alternative fuel technology, such as CNG and
    electric batteries
  • Proposals to discourage the use of old vehicles
    by levying higher taxes on older vehicles
  • Proposal for a terminal life policy for
    commercial vehicles (CVs) along with incentives
    for the replacement of such vehicles.

National Policy
  • There are several trends w.r.t government
    legislations that are making Indian companies
    increasingly competitive
  • Safety norms to be brought on par with that of
    developed countries
  • Emission norms and environmental standards in
    line with those in the developed world
  • Fiscal duties have been significantly reduced
    over the years
  • Gradual de-reservation of items for small-scale
    sector augurs well for the industry
  • Value added tax (VAT), as a system of taxation,
    aimed to harmonise the tax structure across
    states
  • Exports are virtually not subject to any taxes on
    account of the various advance license schemes,
    etc.

Regulatory Trends
State Support
  • Commercial tax rates levied on automobile
    components industries and trade are being
    rationalized and will be brought at par with the
    rates prevalent in other competing states.
  • Entry tax rates on raw material such as steel
    being used by automobile component industries
    shall be rationalized.

Government initiatives would act as a key driver
for growth of your investments.
30
MP A Strategic Location
  • The cluster at Pithampur also has significant
    locational advantages on following three aspects.
  • 1)Proximity to steel plants of Bhilai, Nagpur etc
    is likely to result in reduction raw material
    costs. The cost of raw material is around 60 of
    the total production costs of which steel is the
    key component within the raw material.
  • 2)Proximity to ports both in east coast and west
    coast provides a vital linkage to the
    international markets. Since, the auto industry
    is exports driven this linkage is critical to the
    development of the cluster. Further, water
    linkages to both sides provides better linkages
    to countries.
  • 3)Proximity to Markets Being centrally located
    and being well connected to major cities such as
    Delhi, Mumbai, Pune, Kolkatta etc. assists the
    companies to reduce logistic costs.
  • Further, automobile manufacturers are spread
    across the country. Being centrally located the
    auto component manufacturers would have access to
    a larger client base in the country.

North (42)
Jamshedpur (1220)
West (28)
East (5)
Kandla (933)
Bhilai
Haldia (1350)
Nagpur (352)
Satara, Pune, Ahmednagar, and Raigad (800)
Mumbai (780)
Vishakapatnam (1310)
South (25)
Key Steel Plants (Distance from Bhopal)
Key Ports (Distance from Bhopal)
Region (Share of Passenger Car Market)
31
MP A Preferred Investment Destination
  • Madhya Pradesh is one of the leading states in
    the Country for the auto and auto ancillary
    industry in the Country. To its advantage several
    units are cluttered around a small stretch of
    land which would enable both forward and backward
    support to your business.
  • The low set-up costs make business proposition
    one of the best in the world. For example, cost
    of developed land in Pithampur industrial area is
    only US 1.7- US 4 pr sq meter.
  • The city of Indore also fairs well in terms of
    low cost of living index. Hence, the companies in
    Indore can expect manpower costs savings of upto
    30 in comparison to companies in Chennai,
    Mumbai, Pune etc. Manpower costs are
    approximately 8-10 of the total costs.
  • 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.

Market Intensity Index Comparisons- A Reflection
of Low Cost of Living
Investment Opportunities in MP
  • Information Technology Based Designing Testing
  • Leverage the Proving Grounds _at_ Pithampur
  • - Leverage Embedded Software _at_ Bhopal
  • Research Development Center
  • Manufacturing Hub For South-East Asia
  • Auto- Component Manufacturing Facility
  • Offshoring/ Outsourcing Auto Components
  • Some of the other supporting factors assisting
    your business would be
  • Central location
  • Availability of skilled manpower
  • Low operating cost
  • Co-operative Labour Union etc.

32
Textiles Apparel
33
Sector Profile Textiles
34
Textile Evolving Landscape
  • India contributes to about 25 share in the world
    trade of cotton yarn. It is the worlds
    third-largest producer of cotton and
    second-largest producer of cotton yarns and
    textiles.
  • 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
  • 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.
  • 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
  • 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.
  • The ready made garment sector is the biggest
    segment in the Indias textile export basket
    contributing over 46 of the total textile
    exports.
  • Export of cotton based items continue to
    pre-dominate which is natural in view that India
    is the worlds third-largest producer of cotton
  • 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.

Indian Production Statistics (2005)
  • About 4 of Gross Domestic Product
  • About 14 of total industrial production
  • Employs 20 of work force
  • About 17 of gross export earnings

Contribution of Textile Sector
Indias export of textiles (2004-05)
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.
35
MP Emerging Textile Hub of India
  • The industrial history of MP dates back to the
    later part of 19th Century when in 1866, a cotton
    textile unit established by then Maharaja Holkar
    at Indore.
  • Presently, the textile industry in the state is
    thriving in the southwest (Malwa) region. A large
    number of cotton textile mills are clustered
    around Indore, Ujjain, Burhapur etc.
  • Easy availability of cotton, Ginning and Pressing
    units, skilled manpower, developed education
    system, entrepreneur skills etc are some of the
    reasons for rapid growth of the industry in the
    State.
  • Presence of major textile players such as
    Bhilwaras, Indo-Rama, Bhaskar, Oswals,
    Parasrampuria, Maikal, S-Kumars etc and the
    proposed expansion plans indicate the high
    investor confidence in the State.
  • The state is focussing on cluster development
    around sectors of strategic advantage by
    developing infrastructure in and around these
    clusters. Growth of export oriented spinning and
    large scale knitted garment units near Indore,
    and growth of Chanderi Maheshwari products are
    excellent examples of cluster development.

Infrastructure at a glance
Bhaskar Industries Ltd.
36
MP Making Businesses Work
  • Madhya Pradesh is poised to become the next
    destination for leading textile companies, who
    would find market environment conducive to park
    their investments.
  • The state presents a tremendous opportunity by
    providing significant advantages across the value
    chain.
  • The state has several units in a cluster, which
    could be acquired and refurbished to provide a
    quick start to your business.
  • 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.

Madhya Pradesh Has Strengths Across The Value
Chain
Process
Raw Material
Market
Spinning
Weave/ Knit
Processing
Stitching (Garment/ Apparel)
Advantage Madhya Pradesh
  • Climatic Conducive for cotton production with
    large varieties available within and surrounding
    States
  • Being centrally located and well connected the
    raw material can also be brought on short notice
    from any part of the Country
  • Over 40 spinning units
  • Over 1.4 million spindles
  • The manpower has on the job experience in latest
    technology
  • Several units are available for procurement by
    investors
  • Over 47000 handlooms are installed in MP
  • Over 43,000 power looms
  • Rich tradition of weaving and knitting
  • Several export oriented processing units are
    present in the state which can be developed
    further.
  • The state has a blend of both new age and
    traditional processing capabilities essential to
    promote Indian products internationally.
  • MP is renowned for skills of its people in
    stitching garments.
  • Manpower is well trained and is capable of
    producing world-class garments/ apparels.
  • Further, the states strong leather industry is
    likely to complement the textile industry.
  • Strategic central location to develop warehouse
  • Well connected with the entire Country through
    railway network
  • Proximity to ports in Maharashtra and Gujarat
    provide cost competitiveness both for exports and
    imports
  • Availability of skilled manpower at competitive
    costs
  • Government initiatives in terms of proposed
    apparel parks, fiscal incentives etc would
    benefit the investors.
  • Success Stories S Kumars, Bhilwaras, Oswals,
    Maikal, Indo-Rama etc.

37
MP A Preferred Investment Destination
  • Madhya Pradesh is poised to become one of the
    leading states in textile industry through its
    cluster development initiatives. To its advantage
    several powerloom/ handloom units are cluttered
    around a small stretch of land. To provide a kick
    start to your business there is a significant
    opportunity to target and acquire these units.
  • The clusters also have significant locational
    advantages. For instance, Malwa region near
    Indore cluster is a leading cotton growing belt
    and a textile hub in the Country providing the
    competitive edge to your company. The material
    costs account for nearly 55-60 of the costs of
    production in India. Even a 10 of savings due to
    proximity to Malwa region could result in 5
    increase in operating margins.
  • To further support your business endeavours
    Government of Madhya Pradesh has created
    specialised infrastructure in the form of Apparel
    parks. Being an industry with social importance,
    the Government also provides special fiscal and
    non fiscal incentives to the units in the state.
  • Some of the other supporting factors assisting
    your business would be
  • Central location
  • Low set-up costs (Land, building etc)
  • Availability of skilled manpower
  • Low operating cost
  • Co-operative Labour Unions (one of the best in
    the Country)
  • Government support etc.

Textile Clusters in The State
Handloom Clusters
Power-loom Clusters
Proposed Apparel Parks
Availability of Raw Material
Malwa region is a leading cotton growing belt
Malwa Region
38
Offering Specific Incentives
For ensuring maximum value addition in utilizing
available resources and strengthening the
different components of the Madhya Pradesh offers
special incentives to units present in the state.
This has further increased the competency of the
units in the state and has made investments more
lucrative.
Highlights of Special Incentives Given to Textile
Industry
  • Special Incentives to Readymade Garment,
    Powerlooms and Made-up Garment industries
  • Benefits under Government of Indias schemes such
    as Apparel Park Scheme, Textile Centre
    Infrastructure Development Scheme (TCIDS)
  • Modernization of units of this sector through
    Technology Upgradation Fund Scheme (TUFS),
    Group Work Shed Scheme.
  • Exempted from the binding of minimum wage
    fixation on a daily basis.
  • An Apparel Training Institute would be set up
    with the assistance of Apparel Export Promotion
    Council in the State, so that maximum number of
    trained worker could get employment in the
    Ready-made Garment industry.
  • Efforts to establish a national level fashion
    designing technology institute in the State in
    order to facilitate textile industry of the State
    regarding the information for design development
    and to provide forecasts.
  • In order to accelerate the pace of modernization
    of the unorganized power-loom sector, modern
    power loom clusters would be developed at
    Burhanpur, Indore and Ujjain with financial
    assistance sought under Government of Indias
    Group Shed Scheme.
  • Development of the process house through private
    participation by providing necessary facilities
    and if required their cases would be considered
    by the committee for Mega Projects.
  • The provision related to labour laws declared for
    Special Economic Zone will be made applicable to
    the projects / special areas established such as
    Apparel Park, Garment Complex and unit
    established/being transferred under Group Work
    Shed Scheme.
  • Cotton ginning and pressing units would be
    provided high quality cotton and they would be
    encouraged for modernization under centrally
    sponsored schemes with the help of their
    recognized associations.
  • Construction of tar roads for smooth
    transportation to Cotton Mandi and construction
    of cement platform for storage of cotton,
    using Mandi Board's fund would be taken up on
    priority basis.
  • Units purchasing yarn produced within the State,
    would be given a "set off" of 2 (Two percent)
    on Commercial Tax would be given.

39
The Way Forward
  • With all the right ingredients in place, Madhya
    Pradesh has several locations which are suited
    for developing textile units. Investments are
    likely to flow in the next few years. The state
    is likely to witness the resurgence of textile
    industry, which would play a significant role
    even at national level. The improving
    infrastructure and rising standard of living are
    likely to infuse capital into the state.
  • The state could attract investments of around US
    1.3 billion thereby generating direct employment
    for over 0.16 million people. Further, with the
    mordenization initiatives undertaken by the
    Government the states competitiveness in the
    textile industry is likely to rise.
  • MP also fairs well in terms of low cost of living
    index. Hence, the companies in Indore can expect
    manpower costs savings of 20-30 in comparison to
    companies in Chennai, Mumbai, Surat, Ahmedabad
    etc. The manpower costs in India typically form
    8-10 of the total costs.

Market Intensity Index Comparisons- A Reflection
of Low Cost of Living
Source Madhya Pradesh Textile Report, MPSIDC
40
Pharmaceuticals
41
Sector Profile Pharmaceuticals
42
Evolving Landscape
  • 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.
  • 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.
  • 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.
  • 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.
  • With formulations contributing to 50 of the
    exports, Indias pharma exports were
    approximately USD 3.17 billion.
  • Projections of growth of Indian pharma market
    (exclusive of exports) range from USD 11.9 bn in
    2009 to USD 25bn by 2010
  • Reduced growth rate
  • Increasing cost of RD
  • Shorter time span for exclusivity
  • Fewer block busters
  • Price pressure from Generics
  • Higher complexity through more number of smaller
    revenue drugs
  • Low-cost, high-quality production
  • Large and growing US FDA approved plant capacity
  • Synthetic Chemistry talent for early stage
    compound development
  • Low cost of research and world-class testing
    facilities
  • Cost of a research scientist in India is only
    about 1/6th to 1/4th of that in USA
  • Contract Research and Manufacturing (CRAM)
  • IT enabled services including clinical/market
    data analysis
  • 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
  • Major opportunities in Biotechnology are in the
    areas of Bio-informatics, Bio-pharma etc.
  • Many international biotech companies like Chiron
    Corp, GSK and Sigma Aldrich Corp have expressed
    interest especially in Bio-manufacturinga

43
MP Gaining Momentum
  • Located at the very heart of India, Madhya
    Pradesh is the second largest State and is easily
    accessible from every corner of the Country.
  • 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.
  • 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.
  • 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.
  • 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.

44
MP Offers The Right Blend
  • 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.
  • Madhya Pradeshs 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 Pradeshs
    hospitals is 20,839.
  • 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 Indias leading
    pharmaceutical companies such as Ranbaxy, Lupin,
    NPIL, Albert David etc.

Key Pharmacy Institutes Pass-out 300 Students
Each Year
  • B. R. Natha College of Pharmacy, Mandsaur
  • College of Pharmacy, Indore
  • Department of Pharmacy, Bhopal
  • Dr. Harisingh Gour Viswavidyalaya, Sagar
  • Institute of Pharmacy, Gwalior
  • R.K.D.F. Institute of Sciences Technology,
    Mandideep
  • Shri G.S. Institute of Technology Science,
    Indore
  • V.N.S. Institute of Pharmacy, Bhopal

45
MP A Preferred Investment Destination
  • Madhya Pradesh is all set to become the next
    pharma hub of India through its cluster
    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.
  • To further support your business endeavors
    Government of Madhya Pradesh 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.

Madhya Pradesh has strengths across the value
chain
Drug Research Discovery





Approval Launch
Pre-clinical Development
Clinical Development
Marketing/ Exports
Manufacturing
  • Central location
  • Low cost of labour
  • Specialized infrastructure (SEZ)
  • Low operating cost
  • Low set-up costs (Land, building etc)
  • Specialized infrastructure (SEZ)
  • Low operating cost
  • Availability of skilled manpower
  • Low attrition rates
  • Government support
  • Availability of skilled manpower
  • Low attrition rates
  • Government support
  • Availability of large target population
  • Target population with diverse genetic set-up
  • Availability of skilled manpower
  • Low attrition rates
  • Low cost of labour

Market Intensity Index Comparisons- A Reflection
of Low Cost of Living
COST INDICATORS FOR ESTABLISHING AND OPERATING
BUSINESS IN MP
46
Engineering Electrical Equipments
47
Sector Profile Engineering Electrical
Equipments
48
Evolving Landscape
  • India has a strong engineering and capital goods
    base. The Indian engineering manufacturing sector
    has been growing at the rate of about 5.9 per
    cent in the nineties. With a size of US 22
    billion, the engineering sector exports stood at
    US 6.6 billion in 2001-02 and imports at US
    4.9 billion in the same year. The engineering
    manufacturing sector employs over 4 million
    skilled and semi-skilled workers (direct and
    indirect).

Key developments observed during post
liberalization period
  • The range of machinery produced in India is wide
    and includes heavy electrical machinery, textile
    machinery, machine tools, earthmoving and
    construction equipment including mining
    equipment, material handling equipment, diesel
    engines, electric motors, pumps, instrumentation,
    oil gas equipment, sugar machinery, railway
    equipment, metallurgical equipment etc.
  • Many leading world class companies such as GE,
    Ford, Caterpillar, Sony, Honda, LG, Hyundai,
    Siemens, Philips, Daimler Chrysler, Fiat,
    Lafarge, ABB, Electrolux, Volvo have
    manufacturing base in India.

De-licensing
  • 34 share in number of approvals and 40 share in
    investment

FDI
  • 36 of the total approvals went to the
    engineering industry (1991-2005)

Foreign Technology Agreements
  • 51 of foreign technology collaborations were
    approved in the engineering industry
  • 34.4 share in total industrial production
  • Up by 5 share during last decade

Production
Exports
  • 8 share in 1990s
  • 14 share in 1999-2000
  • 21 share in 2004-05 (USD 16.4 billion)

Better profitability, spruced up manufacturing
setups, aggressive implementation of quality
initiatives marked by higher growth and better
returns on capital employedthe hallmark of
Industrial India the engineering capital
goods sector is back with a bang ET 500
49
MP Gaining Momentum
  • 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.
  • The state has the largest plant of Indias
    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
  • 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.
  • 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 vici
Write a Comment
User Comments (0)
About PowerShow.com