Maharashtra - ESDM Sector Profile 2014

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Attractions Unlimited

Maharashtra –Electronic System Design anManufacturingSector (ESDNovember 2014

Knowledge Partner


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§ The Maharashtra ESDM Sector Profile has been developed by Ernst & Young India LLP, the Knowledge Partner to Maharashtra Industrial DevelopmentCorporation to provide hand holding assistance to investors.

§

The intention is to provide executives a quick overview to the ESDM Sector in the State.§ The complex decision-making process involved in undertaking foreign operations requires an intimate knowledge of a country’s anda State’s commercial

climate as well as recognition of the fact that this climate is continuously evolving. Companies doing business in India, or planning to do so, would be well-advised to obtain current and detailed information from experienced professionals. The information presented in this book hasbeen validated w.e.f September 2014.

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7.58.6

10.412.0

13.7

2008-09 2009-10 2010-11 2011-12 2012-13

Maharashtra's GSDP in INR Lakh Crore

Macroeconomic P

§ The manufacturing sector contributes a significant 18.51 per cent to the state’s GSDP . Amongst the 10 states with the highest GState Domestic Product) in India, Maharashtra is one of the leading states in terms of contribution of manufacturing share to the GSDP.

§ Maharashtra has a Per Capita Income (PCI) of INR 1,07,670. The state has the highest per capita income amongst the 10 states with the highest

GSDP in India .

8.43%

LEADER

MahigIndCroBil

CAconthe

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5.206.00 6.24

7.85

10.05

2007-08 2008-09 2009-10 2010-11 2011-12

Maharashtra's Industrial Output in INR Lakh Crore

Macroeconomic P

§ The state recorded the highest Industrial Value Addition in the nation. The Gross Value Added by all industries in the state amounted to INR 1,79,2crore (USD 29.87 billion) in the year 2011-12, which is 59 per cent greater than the value addition of its closest follower.

§ Maharashtra has the second highest number of factories and has one of the lowest number of industrial disputes in the country.

17.41%

LEADER

HiOu– ICroBil

Main IInd

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Macroeconomic P-

§ Maharashtra has attracted INR 3,16,082 crore of FDI over the period 2000- 2014, which is almost one-third of the nation’s total FDI inflowover the same period.

§ New investment projects announced in 2013-14 which would be set in Maharashtra are proposed to bring in INR 27,795 crore of investment in the state.§ In 2013-14, the state contributed 10.86 per cent of the total projects completed in India in terms of investment value. With a total of INR 28,406 crore of

investment projects completed in the state, Maharashtra is one of the leading states in the country in terms of project completion (by investment value).

One -

Third

LEADERHigin t

Main Iove- 20

27,669

44,664 47,359

2010-11 2011-12 2012-13

Maharashtra FDI Inflows in INR Crore

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ROAD AND RAILWAYS§ More than 99 per cent of the villages are well connected with all

weather roads in the state§ 9.3 percent of total railway network in the country§ 2 Major Railway zones§ Dry Ports, Inland Container Depots, Truck terminals and Railway

sidings for easy freight movement

AIR AND WATER PORTS§ 4 International and 7 Domestic Airports§ 6 MIDC airstrips§ 2 Major ports§ 22.45 per cent of the total cargo traffic of the major ports in

handled by the Jawaharlal Nehru Port (JNPT) and Mumb(MBPT)

§ 53 Minor ports

LAND§ Maharashtra is the second largest state in India, with an area of 30

Million Hectares (307,713 sq. km.)§ MIDC has one of the largest land banks in India, with ‘industrial land’

spanning over 84,000 hectares

ENERGY§ Gross installed capacity of power plants (excluding Central

23726.7 MW. The state has the highest Gross installed capa(Utilities) at 10.62 per cent of the nation’s total installed cap

§ Gross Generation of power plants (excluding central sector77,169.9 million KwH

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Infras


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Infras

Nat

Railw

Airs

Key

Inter

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Maj

To Goa

To Madhya PradeshTo Gujarat

To Madhya Pradesh

Nanded

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Sangali

Nasik

Dhule

Wardha

Jalna

Sindhudurg

To Telangana

T o C h h a t t i s g a r h

To Karnataka

To Goa

Amravati

Osmanabad

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Gondia

Gangapur

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Rajgurunagar

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BaramatiPhaltan

Akola

Jalgaon Nagpur Bhandara

Yavatmal

Cha ndrapur

Kolhapur

Ratnagiri

Satara

Aurangabad

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Thane

Mumbai

Pune

Raigarh

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ESD

3.5 3.94.1

4.55.1

5.7

2010 2011 2012 2013 2014 2015

Indian ESDM Industry Revenues (INR Crore)

§ ESDM industry in India is estimated to have clocked revenues of INR 4 Lakh Crore (USD 68.3 billion) in 2012. The ESDM industry in the country is expectedto grow at a CAGR of 9.9 per cent from 2010 to 2015, to reach USD 94.2 billion. This is more than twice the growth rate of the global ESDM market.

§ Domestic revenues accounted for 70 per cent of the industry revenues in 2012 while exports accounted for the remaining 30 per cent. Most of the exportrevenues are generated from the export of semiconductor design and electronic products while electronic components and electronic manufacturing services

constitute a small portion of the exports.

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79%

5%

15% 1%

Indian ESDM industry revenues 2012 (by


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ESDin Mah

§ With a share of almost 20 per cent in India’s total, Maharashtra has the highest industrial output in the ‘Computer, Electronic & Optical Products. ElectricalEquipment’ manufacturing sector.

§ The industrial output of the Computer, Electronic and Optical Products; Electrical Equipment manufacturing sector of Maharashtra has grown at a healthyCAGR of 19.04 per cent over 2007-08 to 2011-12.

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LEADER

MahigoutCoEleOpElema

*Gross Value of Output : Manufacture of Computer, Electronic and Optical Products; ElectricalEquipment

10.1113.82

17.06 17.5220.30

2007-08 2008-09 2009-10 2010-11 2011-12

Industrial Output of Maharashtra's ESDM Sector


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TALEGAON, PUNE

ESDM HUBS

ESIn Mah

Pune§ Pune is one of the most industrially developed

India.§ Pune’s strong educational infrastructure has ear

name of ‘Oxford of the East and an abundant askilled labor has attracted many electronic mancompanies.

§ Pune’s excellent connectivity to the two of Inports – JNPT and MBPT has facilitated thebecome an export hub for electronic manufactcompanies.

§ Talegaonand Khed are the two ESDM hubssuch as locational advantage, connectivity and ininfrastructure have made these locations hot spelectronic manufacturing companies.

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Key Growth DMagneticMaharashtraAttractions Unlimited

Dedicated Clusters Policy Support

EducationalInfrastructure Skilled Labor

ESDMSector in

Maharashtra

Supplier / VendorBase

Access to ForeignMarkets

Strong DomesticMarketStrategic Location

§ Maharashtra’s top notch educational institutions have facilitated the state to become an R&D hub for the ESDM sector. Moreover, Availability of low costskilled labor has driven companies to establish their global manufacturing hubs in the state and export their products overseas.

§ India currently imports more than half of its requirement for electronic equipment. Maharashtra’s developed industrial infrastructure, a large supplier / vendorbase and an excellent inter state connectivity has attracted investments from many companies that aim to tap the nation’s growing demand for electronic

equipment.


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Human

DEDICATED INSTITUTIOSKILLED WORKFORCE§ The state has a literacy rate of 82.34 per cent with a large base of

skilled and industrial labour.§ The state has a total of 2298 technical institutions with an intake

capacity of 4,49,121. It also houses 781 ITIs (Industrial Traininginstitutes) with an intake capacity of 1,17,747.

§ There are 20 universities in the State of which four are agricultureuniversities, one university for health science course, one university forveterinary science, one for technology and 13 other generaluniversities.

§ In addition to these, there are 21 deemed universities in the State.§ The state is home to some of the most reputed national R&D

institutes, viz., the Centre for Development of Advanced Computing(C-DAC), the BhabhaAtomic Research Centre, the NationalEnvironmental Engineering Research Institute, the National ChemicalLaboratories and the Tata Institute of Fundamental Research. One of the well-known Indian Institutes of Technology (IITs) is located inMumbai.

§ Pune is also an important education hub of India, often referred to asthe ‘Oxford of the East’.

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Type of Institutions

No. of institutions

Intakcapaci

Engineering 1074 3,45,343

Master incomputerapplication

148 13,385

Managementscience 516 57,392

Table: Technical Educational Institutions in Maharashtra (2013-

§ 70 new Engineering colleges have been established in Maharashtthe last year.

§ 15 new Industrial Training Institutes (ITIs) have been establishstate in the last year.


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Policy MagneticMaharashtraAttractions Unlimited

§ Under the state's new Industrial Policy 2013, Mega and Ultra Mega projects can qualify for fiscal incentives upto 100 per cent of the fixed capital investment.Moreover, a 10 per cent additional incentive on top of the above incentives is provided by the state if the project creates double the employment requiredfor the eligibility.

§ In February 2014, the Indian government approved setting up of two semiconductor units by two consortia – one led by JaiprakashAssociates and the other

by Hindustan Semiconductor, entailing investments of INR 51,550 crore. The cabinet also approved that incentives that will bemade available to the aboveconsortia, will also be extended to other players who show interest in setting up of similar semiconductor plants.

TechnologyUpgradation Subsidy Interest Subsidy

Stamp DutyExemption

VAT +CSTAbatement

Cleaner ProductionIncentives

Water EnergySubsidy

Water conservationIncentives Royalty Exemption

Fixed Capital Investment Employment LocationDETERMINING FACTORS

Maharashtra Industrial Policy 2013-18FISCAL INCENTIVE BASKET


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KMagneticMaharashtraAttractions Unlimited

Videocon LG Electronics Godrej & Boyce Mfg. Ltd Bajaj

Trend Electronics TransasiaBio-MedicalsPG Electroplast

EpcosIndia

Schnider Electronic

PortescapIndia Epitome Components Finolex

Reliance Industries

Tata Consultancy Services

ShreemElectric Ltd

Sterlite


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Co

Shri. BhushanGagrani (IAS)Chief Executive Officer - MIDC

Tel : 022-26870800, 22616547Fax No : 022-26871587

Email : [email protected]

Dr. P. Anbalagan( Joint Chief Executive Officer -

Tel : 022-268714Fax : 022-268700

Email: jtceo@midcin

Shri. Yuvraj Poman

Dy. Chief Executive Officer - II Tel : 022-26870142 ; Fax : 022-26871604Email: [email protected]

Head Offic

Maharashtra Industrial Development CUdyogSarathi, Mahakali CavAndheri(E), Mumbai-40

DisclaimerMaharashtra Industrial Development Corporation (“MIDC”) has engaged Ernst & YoungLLP. (“EY”) to prepare this document and the same has been prepared by EY in consultation with MIDC. This document is for information purposes only. While due care has been takenduringthe compilation of this document to ensure that the information is accurate to the best of EY knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.EY does not assume any liability or responsibility to any person for the outcome of decisions taken by such person as a result of any reliance placed on this presentation. EY shall not be liable for any direct or indirect damages that may arise due to any act or omission on thepart of the user due to any reliance placed or guidance taken from any portion of this presentation.©2014All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by MIDC and Ernst& Young. The same may not be reproduced, wholly or in part in any material form (includingphotocopyingor storingit in any mediumby electronicmeans and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of MIDC.

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Maharashtra - ESDM Sector Profile 2014