Invest Karnataka

INVESTMENTOPPORTUNITIESIN KARNATAKA

Government of KarnatakaCommerce & Industries Department

Agenda

Advantage Karnataka

Karnataka Drivers

Focus Sectors

Invest Karnataka 2016

Government Support and facilitation

Advantage Karnataka

Knowledge, Innovation and R&D Capital

Hub for hi-tech sectors

One of the largest Global Tech Hubs

Future is being made in Karnataka

3th largest contributor to GVA in the country

Source: Economic Survey Reports 2014-2015, GoK. 1$ = INR 65

Karnataka: Thriving Economic Hub

Ranks 4th in terms of cumulative FDI (USD 17 Bn from 2000 to 2015)

State GDP at US$120 billion (Growing at 7% P.A.)

Industrial output - US$ 61.5 billion

Literacy rate – 76%; Workforce – 860,000$€£¥

Total Exports - US$ 52 billion (13% of India exports)

Cumulative FDI – US$ 17.5 billion (2000 to 2015)

Karnataka Drivers

Karnataka: Key drivers

Locational Advantage

Knowledge Capital

Excellent place to live and work

Locational Advantage

Largest Biotechnology hub

Largest No. of Software Technology Parks

Largest No. of Medical institutes

Largest number of Industrial Training Institutes

Largest no. of R&D centers - 367

3rd largest no. of Engineering Colleges

KnowledgeHub of India

Section title

Knowledge Capital

Excellent Place to Live and Work

Focus Sectors

Manufacturing TechnologyEnergy &

InfrastructureTourism

Agri business &Food

Processing

Aerospace

Automotive

Machine tools &

Heavy Engineering

Textiles &

Garments

Pharmaceuticals

Electronics

Information

Technology

Bio Technology

Audio Visual

Gaming and

Comics

ConventionalEnergy

Non-conventionalEnergy

TransportationInfrastructure

UrbanInfrastructure

IndustrialInfrastructure

LogisticsInfrastructure

Agriculture

Horticulture

Fisheries &

Marine

Dairy & Animal

Husbandry

Heritage

City

Adventure &

Recreational

Focus Sectors and Investment Opportunities

• Produces more than a quarter of India's aircraft and spacecraft

• Exports 65% of all aerospace related products from India

• Strong lower tier supplier base

• Home to top R&D centers –

Indian Space Research Organization (ISRO)

Defence Research and Development Organization (DRDO)

Boeing Research & Technology centre

Airbus Engineering Centre

Aerospace

Snapshot

Bangalore

Belgaum

Aerospace clusters

Aerospace

• Integrated Aerospace Special Processes facility at Bangalore

• Aerospace Technology Centre at Bangalore

• Partnering opportunities with SMEs

• Greenfield airport development - Shimoga, Bijapur, Hassan and

Gulbarga through the PPP model

Investment Opportunities

Auto & Auto Components

• One of the largest auto component manufacturers

• Presence of major OEMs (Toyota, Volvo,

Honda Scania, TVS)

• Tier 1 & 2 players (DENSO, Aisin Seiki, BOSCH,

APEX auto, Faurecia)

Snapshot DharwadCluster

HoskoteCluster

Bidadi Cluster

BelgaviCluster

ShivamoggaCluster

Existing Auto clusters

Auto & Auto Components

• Auto parks/Industrial infrastructure development on PPP mode

• Manufacturing of Motor vehicles (2-wheelers, 3-wheelers, passenger vehicles)

• Auto ancillaries/auto parts manufacturing


Electronic System Design & Manufacturing (ESDM)

• 85+ Chip Design houses located in Karnataka

• 3500 ESDM skilled personnel available through

Skill development training centres per year

• Advantage of state as the hub of Knowledge

based industries

Snapshot

BrownfieldESDMcommonfacilitationcentre,Mysore

BrownfieldESDMcommonfacilitationcentre,Bangalore

1. ESDMClusteralong withCLIK,Doddaballapura (20acres)

2. HardwarePark + ITPark,Devanhalli

Greenfieldcluster atVasantanaraspura

Upcoming ESDMclusters

• ESDM cluster development, Electronics City

• Brownfield ESDM common facilitation center, Mysore

• Greenfield cluster, Vasanthnarsapura

• ESDM Cluster, Doddaballapura

• Hardware Park + IT Park, Devanhalli


Electronic System Design & Manufacturing

Machine Tools & Heavy Engineering

• Fastest growing sector of the state at CAGR of 21.3%

• Engineering exports from Karnataka of around US $ 3.5 billion

• Foundry industry in Karnataka valued at US $ 10.41 billion

• Engineering items exported to Germany, China, South Korea,

Brazil, USA, Malaysia, Thailand, South Africa, Singapore

Snapshot

Tumkur

Mangalore

Belgaum

Existing & Upcomingparks Existing

Upcoming

• Dedicated Machine Tool Park proposed at Vasanthnarasapura

• Proposed cluster, Tumakuru

• General Engineering SEZ at Mangalore


Machine Tools & Heavy Engineering

Pharmaceuticals

• Presence of exclusive Pharma SEZ, Pharma

industrial areas and R&D Centres

• Home to 221 formulation units and 74 bulk

drug units

• Exports 40% of its pharma produce

Snapshot

Yadgir PharmaSEZ

VemgalWorld’s Largestdrug formulation

units

HassanPharma SEZ

Existing PharmaceuticalClusters

• Expansion of Yadgir SEZ

• PPP based pharma SEZs and technology parks

• Development of Innovation and incubation centres

• Skill Development and sector specific research centres


Pharmaceuticals

Textiles and Garments

• Produces 35% of raw silk and 11% of wool

• 2nd largest garment exporter in India

• Sourcing hub for prominent brands like Nike,Tommy Hilfiger, Adidas, Allen Solly

• Presence of 144 skill development centers and 168private training centers

Snapshot

Doddaballapur

Tumkur

Kalburgi

Bellary

Sira

Yadgir

Chamrajnagar

Existing and upcomingTextile zones

Existing Upcoming

• Areas of investment-Technical textiles and garmenting industry

• Development of cluster parks-Support in common infrastructure

for green field and brown field parks

• Setting up of specific textile zones


Textiles and Garments

Agri-Business and Food Processing

• Total value output of US$ 10 billion

• Growing at 20% CAGR, outperforming national average

• 10 agro climatic zones

• Leaders in Horticulture production and exports

• Largest producer of Coffee, Silk, Arecanut, Pomegranateand Gherkins

• Presence of 7 national level R&D institutes in Agricultureand Horticulture

• 7 Food Parks and 1 Spices Park in operation

Snapshot

Bangalore Rural

Kolar

Bangalore Rural

Chtiradurga

Tumkur

Bijapur

Gulbarga

Bagalkot

Haveri

Shimoga

Shimoga

Operational Food Parkat Kolar, Bagalkot,Chitradurga, Gulbarga &Tumkur

Upcoming Food ParkAt Bijapur & Shimoga &Spice park at Haveri

Land available (apart fromFood Park)

• 1 Rice technology park and 1 Sea Food Park on the anvil

• Solar roof top project on State warehouses in PPP basis – An estimated

150MW across 7 regions.

• PPP projects for Operation and Management (O&M) of State warehouse

• Innovative PPP project for Integrated Horticulture Development as FPOs


Agri-Business and Food Processing

Information Technology

• US$ 50 Billion IT-BPM revenue

• Growing at CAGR 24%

• 3500+ companies and 743 Multinational Companies

providing direct employment to 1 Million

• Bangalore - Start-up capital of India

• With 367 R&D centers - largest R&D hub in India

Snapshot

Bangalore,Peenya

Mysore

Hubli

IT SEZ,Mangalore

Shivamogga

Gulbarga

Haliyal

Proposed areas ofdevelopment

• Incubators on PPP mode

• Bangalore IT Park at Devanahalli

• Hardware Park at Devanahalli

• EPIP Park at Dakshina Kannada District

• IT SEZ at Mangalore

• Aryabhatta Park at Hubli


Information Technology

Biotechnology

• Presence of more than 60% country’s Biotech units

• Contributes 2nd largest revenue in India’s Biotechindustry

• Leading biotech institutions and training centres-IISc, NCBS, IBAB, BTFS, IABT, BBC & CHG

• Bangalore-India’s Best place for Innovative Biotechstart-ups

Snapshot

Bangalore,Peenya

Mysore

Hubli

IT SEZ,Mangalore

Shivamogga

Gulbarga

Haliyal

Proposed Bio innovationcentres (US$ 20 Mn each)

Animal BT Park /Vivarium, Bidar

Bangalore Bio-Innovation centre

Nutri / Nutraceutical andPhyto-PharmaceuticalPark (N2P2), Mysore

MarineBiotech Park,Mangalore

Agri BiotechPark, Dharwad

• Agriculture (cotton, rice, sugarcane)

• Pharma (vaccines, R&D Synthetic)

• Energy and Environment (Conversion of CGH, waste to biodegradable polymers)

• Hitech-Biotechnology parks

• Innovation and incubation centres


Biotechnology

Energy

• 24x7 power to all by 2020

• Highest installed capacity of 3.6GW for hydro power

• Potential of 7.9 GW of pumped storage hydro power

• Best online customer service practices in India

Snapshot

Proposed Projects

Energy Centre ofexcellence &

incubation centres,Bangalore

Repowering ofOld wind mills,

Chitradurga

• Development of solar parks limited to 200 MW

• Repowering of old wind mills

• Micro/mini grid solutions for electrifying villages

• Harnessing the 7.9 GW potential of pumped storage based hydro power

(Krishna river and Kaveri river basin)

• Implementation of smart grid in all ESCOMs

• Implementation of an “Energy Centre of excellence and Incubation Centre”


Energy

Infrastructure

• Successive participation from World Bank in highways

development

• Bengaluru airport is busiest airport in South India and 3rd

busiest in India

• Railways- Joint venture projects in partnership with Indian

Railways (GoK-GoI partnership)

• Undertaken projects with PSU’s in Intercity Gas pipelines

• Only state with 2 Industrial/Economic corridors – CBEC and

BMEC

Snapshot

• City Cluster development project to develop water, power and other support

infrastructure in 8 locations around Bengaluru

• Small airport development across the state and promotion of air taxi services

• Tadadi seaport development INR 3800 crore investment opportunity

• New road projects – 23 projects with more than 1500 km opportunity for development

• Project shelf across sectors including 80 projects

• International Convention Centre – 6000 seating capacity; largest in India – INR 1000

Crore investment (PPP)


Infrastructure

Tourism

• Largest number (319) of tourist destinations in India

• Encompasses Heritage, Wildlife, Spirituality, Adventure,

Cities, waterfalls, Rivers

• Recorded 100 Million tourists with a growth of 50% in the

past five years

• Remarkable connectivity with 2 International and 3

Domestic airports, excellent bus and rail network

Snapshot

BidarWorld Watch

Monuments Fund List

HampiUNESCO WorldHeritage Sites

MysoreHeritage,Wildlife

CoorgWaterfalls, river,

National Park

MangaloreCoastal

UdipiSpiritual,waterfalls

PattadakalUNESCO WorldHeritage Sites

• Cruise Tourism: Karwar, Belekeri, Tadri, Malpe, Old & New Mangalore

• Tourism related infrastructure: Malaprabha Dam-Belagavi, Hidkal Dam-

Belgavi, Manapalla Lake-Udupi, Gorur Dam-Hassan

• Theme parks: Bhadra Dam, Chickmagalur; Bangalore; Almatti Dam,Bagalkot

• Cable Cars: Chamundi Hills, Nandi Hills, Kemmannugundi hills, Madhugiri

• Adventure Sport facilities: Davangere, Mandya, Shimoga, Udupi


Tourism

Government supportand facilitation

Automobile

Apparel

Steel

Cement

Food processing

Pharmaceutical/Biotech

Power

Industrial clusters Industrial estates

Size of Investment Large Mega Super Mega Ultra Mega

Type of Enterprise SME SC/ST Women entrepreneurs Ex-Armed Forces

Promoting Industrial Dispersal Zone 1 Zone 2 Zone 3 Zone 4

Sectorwise Manufacturing Agri business & food processing Technology and Startups Energy & Infrastructure Tourism

Industrial Policy 2014-19

Bringing processes online

Finance

Pollution Control

Labour

Facilitation services - Nodal officers of Karnataka Udyog

Mitra (KUM) assigned to help ground investments

Single portal for all information - www.ebizkarnataka.gov.in

Single Window Clearances through High Power Committee

Approachable Accessible Hands on

Easy to do business

Invest Karnataka 2016

Thank You!!!Thank You!!!

Government & Nonprofit

Invest Karnataka