ELECTRONICS MANUFACTURING CLUSTER (EMC) AT ADITYAPUR, JHARKHAND

Opportunity to Invest

April 2015

BACKGROUND

Jharkhand Infrastructure Development Corporation Ltd (JINFRA)

Government of Jharkhand has incorporated a Joint Venture Company

named Jharkhand Infrastructure Development Corporation Ltd with IL&FS

JINFRA has been mandated to provide advisory services for development

of infrastructure projects in Jharkhand to be developed on suitable Format.

Electronic Manufacturing Cluster at Adityapur Industrial Area Phase VII is

one of the flagship project

Structure of Presentation

1. Electronics Sector in India

2. Jharkhand Scenario

3. Adityapur

4. Existing Industries at Adityapur

5. EMC at Adityapur

6. Project Master Plan

7. Incentives to Electronics Industries

ELECTRONICS SECTOR IN INDIA

Electronics Market in India – trend & forecast

65% of demand for electronics products is met by imports

Indian Electronic Products

Segment Products Covered

Consumer Electronics TVs (CRT and FPD), DVD players, set-top boxes, home theatre systems, MP3 players, audio equipment, digital cameras and other household appliances

Automotive Electronics Electric vehicles, power windows, anti-brake locking systems, remote keyless entry, two-wheeler (2W) ignition units, flashers, regulators, instrument clusters (2W,4W), engine management system 4W and car radios

Industrial Electronics Power electronics, LED lighting, CFL, energy meters, UPS, inverters, weighing scales and power supplies

IT Systems and Hardware Desktops, notebooks, tablets, monitors, servers, storage flash memory cards, USB drives and printers/MFDs

Telecom products and

equipments

Fixed-line and mobile telecommunication equipment, modems,

routers, switches, IP PBX, BTS (GSM, CDMA), WiMax (BTS,CPE), PON/GPON ONT/OLT and DWDM

Mobile Devices Mobile Handsets

Other Electronics Aerospace, Strategic electronics including defense, medical

electronics and smart cards

Segment wise share

Indian Electronics Market: Top 20 Priority Products (2013)

Source- www.deity.gov.in

ELECTRONICS SCENARIO IN

JHARKHAND

Projected Demand for Electronics Companies – total Built Up

Area

Projected number of Electronics Companies

ADITYAPUR

Location of Adityapur

Adityapur/Jamshedpur

Jharkhand

Project location at Adityapur-Regional Assessment

Site strategically located at boundary of Jharkhand, West Bengal and Orissa.

EMC Adityapur- Regional Advantages

Tata Motors & Auto Cluster, Tata Steel,

XLRI Jamshedpur (0-10 km)

Bokaro Steel Plant, Ranchi

(CAPITAL), IIM Ranchi, Birla

Institute of Technology, Ranchi,

Indian School of Mines,

Dhanbad, IIT Kharagpur (200-

300 km)

Rourkela Steel Plant, Jindal Steel ,

Haldia Port (200-300 km) Paradip Port, Kolkata (300-400 km)

Within 50 Km

Within 100 Km

Within 200 Km

Within 300 Km

Kolkata

Kharagpur

Jamshedpur Urban Agglomeration-Growth potential

Adityapur Industrial Area - Brief • Adityapur – Part of Jamshedpur Urban Agglomeration - JUA consisting of

Industrial and Residential precincts spanning over 49 sq.km (of 149 sq.km of

JUA)

• Adityapur Industrial Area (AIA) of around 3000 acres is broadly divided into

seven phases with each phase having direct approach from the state highway

• The Industrial area houses around 800 active Medium and small scale

industries

• AIA caters to large industries like Usha Martin, Tata Motors and Tata Steel etc.

• AIADA- An autonomous body under the aegis of the department of industries,

GoJ with a command area of nearly 33,970 acres is the owner and regulator of

this land

• AIADA has undertaken development of an Electronic Manufacturing

Cluster(EMC) within AIA in order to:

– Develop an ecosystem of suppliers and consumers to bridge the demand

supply gap of domestic electronics consumption

– Develop the state’s e o o y y attra ti g i vest e t i the E“DM “e tor and provide employment opportunities.

– Attract and retain entrepreneurial talent.

Industrial Ecosystem in Jharkhand

EXISTING INDUSTRIES IN ADITYAPUR

Precision Instruments

Engineering Industries

AIADA – Existing Industries and Products

Foundry Component

Fabrication

AIADA – Industries and Products

• More than 900 active industries engaged in

Engineering, Chemical, Food and Beverages

sectors

• 25 of these units are Export Oriented Units

KYOCERA CTC PRECISION TOOLS PVT LTD

• Kyocera CTC Precision Tools Private Limited - a manufacturing company jointly established by Kyocera Asia Pacific Private Limited and CTC (India) Private Limited at Adityapur.

• Products - Industrial cutting tool manufacturer focusing on the manufacture of micro drills for printed circuit boards and hole-making tools called Micro Industrial Tools

• Start of construction - November 2012

• Start of trial operation - December 2013

• Manufacturing plant size

• Lot area: approx. 8,000m2 Floor space: approx. 7,000m2 (2-story building)

• Production targets: Begin producing 100,000 inserts per month

EMC AT ADITYAPUR

EMC at Adityapur – Location

ADITYAPUR

PROJECT SITE

GAMHARIA

ADITYAPUR

INDUSTRIAL AREA

TATA STEEL PLANT

AREA

JAMSHEDPUR

TISCO ADITYAPUR

HOUSING COMPLEX

TO KANDRA

Airport

EMC at Adityapur – Location

PROPOSED MASTER PLAN

FOR INTEGRATED

DEVELOPMENT ~235

ACRES

EMC BOUNDARY -

82.49 ACRES

ADITYAPUR TOLL

BRIDGE

Salient features of EMC at Adityapur Land of 82.49 acres offered for the project is owned by AIADA

EMC is a part of integrated township of 234 acres which houses IT/ITes Park, STPI along

with other supporting facilities and infrastructure.

The estimated infrastructure development cost of EMC is around Rs. 1400 million

Developed land/built space to be offered at competitive rates compared to rest of India

State of art Support infrastructure (both physical & social)

Assurance of uninterrupted power being supplied by JUSCO ( A Tata Group company)

Central & state incentives can be availed by industrial units in ESDM sector

Anchor tenants to be offered equity stake in the project subject to maximum of 25% in

SPV for smooth operations of the project.

Stable Political environment with government having full majority in legislative assembly

and favorable policies/initiatives to facilitate decision making by units

Availability of quality & skilled manpower in Adityapur/ Jamshedpur/ catchment area

Captive demand for automotive electronics product due to presence of Tata motors and

other ancillary units

EMC at Adityapur - Site Connectivity

To/From Ranchi

– NH 33

To/FromKolkata

– NH33

Jamshedpur Railway

Station – 7 km

Adityapur Railway Station

– 4 km

To/From Kolkata

To/From

Mumbai

To/From Ranchi

Airport –

3 km

Ranchi Airport - 130 km

With four laning process

of NH 33 to be complete

by 2016, it will be a 1.5

hours drive

Site 15 km

from NH 33

Tata Steel Plant

Tata Motors Factory

EMC at Adityapur- Status

• AIADA submitted Final Application along with DPR for

obtaining DeitY approval

• AIADA obtained In-principle project approval from

DeitY for getting central grant of Rs 50 crores

• Final Application with Final DPR submitted to DeitY in

February 2015. Final Approval expected by April 2015

Location Advantage

Connectivity : The project site is well connected with rest

of the country via all modes of transportation:

Port: The site is well connected to Haldia (approx

250 Km) or Paradip Port (approx 380 Km) to

facilitate imports and exports.

Road: The site is well connected via SH-5 and NH 33

which connects it with major IT cities –

Bhubaneshwar & Kolkata. Upcoming ring road

(eastern and western corridor) of 60 km shall

provide rapid connectivity to Jamshedpur &

Adityapur.

Rail: Adityapur railway station (5 km) and

Jamshedpur railway station (8 km) connects the site

with rest of the country.

Air: located in close proximity to Jamshedpur airport

(3 km) and Ranchi airport (130 km)

Skilled Manpower

Jharkhand is well known education hub, providing

skilled manpower, one of the most critical resources

for any industry to thrive.

Leading institutes like Xavier Labour Relations

Institute (XLRI)-James, IIM-Ranchi, Birla Institute of

Technology-Ranchi, Indian School of Mines-

Dhanbad etc, provide technical and/or managerial

education and training per excellence.

Ready Market for Auto Electronic Components

Manufacturing

Home to one of the largest commercial

manufacturing unit in India (Tata Motors at

Jamshedpur).

More than 600 auto ancillary industries including

auto component units are functioning in Adityapur (

One of the largest Auto Cluster of the country),

providing direct employment to more than 25,000

people.

Upcoming Industrial Park – Mega Projects

Government of Jharkhand is planning to setup up IT

Park and STPI at Adityapur.

An Automotive Vendor Park will be established

under PPP mode at Adityapur.

Target Sectors for EMC at Adityapur

Sectors Type of Industries Products

Electronic

Components

Industrial Electronics Circuit board, Inverters , Energy Meters, Solar panels

LED Lights/Fixtures CFL Lights, LED Lights

Consumer Electronics Tv's(LCD & LED), Home Appliances, Set -top Boxes, Digital

Camera, Flat Panel Display etc

Automotive Electronics

Electronic brake distribution, Traction control, 2W ignition, 4

W ignition, Digital Instrument (Speedometers), Car Stereo,

Anti-lock braking system

Power Electronics Diodes, Thyristors, Transistors

Telecom Products

Optical Fibre Cable Single mode, Multimode and Plastic optical fiber (POF)

Switches Switch board/ panel

WiFi, WiMax and WiMAX advance

Telecom Equipment

Smart cards, biometric, swap machine (credit/debit

card),Mobile Phone, Mobile Accessories, Modem/Routers

Carrier Ethernet/ Network Integration Cables

Health& Medical

Electronics Medical Equipment products Medical Electronic Devices

IT Products IT Hardware Computer Accessories, Pri ter, Desktop’s, Laptop's, CD's, DVD's, Scanner , Pen drives, Tablets

PROJECT MASTER PLAN

MASTER PLAN

EMC-Area Statement LANDUSE DETAILS

Area details as per DPR

Saleable Area Non Saleable Area Total Area Proccesing Area

Description No Of Plots

Industrial Plots

2 acre plot 9 18 18

1 acre plot 22 22 22

0.5 acre plot 21 10.5 10.5

Flatted Factory 1 5 5

Total Industrial Land Area 55.5 55.5

Green Area 5.95 5.95

Ware House/ Truck Parking 2 2

Road Area 12.14 12.14

Total Proccesing Area 57.50 18.09 75.59

Non Proccesing Area

School / Creche 0.31 0.31

Hospital /Health Care Centre 0.25 0.25

Incubation Centre 0.64 0.64 Testing and Certification Centre

Admin and Support Offices 0.32 0.32

Employee Hostel & Mess 0.59 0.59

Trade Pavilions 0.78 0.78

Local Shopping and Restaurant 0.56 0.56

Total Support & Services Area 3.13 0.32 3.45

Green Area 2.96 2.96

Road Area 0.49 0.49

Total Non Proccesing Area 3.13 3.77 6.90

Total EMC Area 60.63 21.86 82.49

% of toal area 73.50 26.50 82.49

Proposed Master Plan

Facilities being offered in EMC

Supporting project components for EMC at Adityapur

Basic Services Essential Services Welfare Services

Entrance plaza

Internal roads

Storm water drainage

Street Lighting

Water supply network with WTP

Sewerage collection system with STP

Truck terminal & warehousing

Electric distribution with power backup

Waste disposal & management

Government support offices

Employee hostel & mess

Health centre

Creche/nursery

Local shopping centre

Restaurant

Park and Recreational Facility

Support Services Manufacturing Services Government regulatory support/services

Incubation centre

Trade pavilion

Training Facility

Auditorium

Video Conferencing

IT Infrastructure

Tool Room

CAD/CAM

Flatted factory

Testing & certification centre

Development commissioner/designated

officer for custom clearance

Tax Support

Labour Compliance

Pollution Control

AIADA Administration Office

Details of Common Facilities

Sl No Building Name

Proposed

Covered Area

(SFT)

Site Area

(Sqm)

Ground

Coverage

(Sqm)

Ground

Coverage

(%)

No of

Parking

No of

Storey

1 Entrance Plaza 1,580 136 100.90 74.19 NIL G

2 Flatted Factory 2,00,264 20251 3721 18.37 Truck-30,

Car-318 G+IV

3 Truck Terminal &

Warehouse 21,663 8112.75 2012.5 24.81

Truck-18,

Car-10 G

4 Trade Pavillion 32,377 3136.3 1398 44.57 Car-36 G+I

5 Incubation Centre 45,705 2605 849.22 32.60 Car-32 G+IV

6 Testing & Certification

7 Admin Building 9,053 1276.25 420.5 32.95 Car-13 G+2

8 Employees Hostel 50,541 2395 1131.35 47.24 Car-20 G+IV

9 Health Care Centre 9,176 1000 426.25 42.63 Car-3 G+II

10 School & Crèche 8,372 1260 777.75 61.73 Car-3 G+II

11 Local Shopping

Centre 16,937 2277 786.75 34.55 Car-19 G+I

Total 3,95,667

Flatted Factory / Standard Factories

Multi-storied Built up space (10,000 sq.ft on each floor) for Electronics factories

Trade Pavilion

Incubation Centre & Testing Lab

Administration Building

E ployee’s Hostel Specially designed for Expatriate Executives planning to stay for long periods

Primary Health Centre

Local Shopping Centre

Availability of Industrial Plots/Built Space

Available – Plots + Ready to move in Standard Factories

• Plots sizes available for allotment in the EMC:

• 5 acre plot is reserved for Flatted factories (FF) / Standard

Factories

• Initially 200,000 sq.ft built up area (BUA) for FF planned which

may go up to 800,000 sq.ft depending on demand

Sl.No Size of Plot (in acres) No. of Plots

1 0.5 23

2 1.0 19

3 2.0 9

4 5.0 1

Developed plots are offered @ Rs 1630 per sqm (indicative)

INCENTIVES TO ELECTRONICS INDUSTRIES

Incentives under M-SIPS

GoI incentives are available for entire value chain of

identified electronics products for 10 years

Reimbursement of 25% of Capital expenditure

Reimbursement of CVD/Excise for capital

equipment in non SEZ units

Reimbursement of central taxes and duties for 10

years i sele t high te h u its like FAB’s a d ATMP’s Preferential Market Access (PMA)

Preference to domestically manufactured electronic

products in government procurement

Extent of government procurement from domestic

manufacturing will not be less than 30% of the total

procurement

Export Incentives

Focus product scheme- 2% duty credit scrip

Special products scheme - 5% duty credit scrip

Electronics Development Fund (EDF) being created

by GoI as part of Digital I dia to support R&D a d

innovation in the ESDM sector

GoI offerings for ESDM units

Comprehensive Project Investment Subsidy (CPIS)

7% of total Capital investment with ceiling of

Rs.5 crore.

5% additional incentive for providing

employment to local persons.

5% additional benefit to SC/ST/Women/

Handicapped Entrepreneurs.

Reimbursement of 75% of Net VAT paid per

annum- upto max 75% of total fixed capital investment for 5 years.

Financial Assistance for patent: max of 50% of expenditure with ceiling of Rs 2 lakh per patent.

Lease rentals (including premises on rent): Reimbursement of upto 50% of actual cost incurred with a ceiling of Rs 5 lakh per annum upto 3 years for the plug-and-play built up office space of minimum 2500 sq. ft.

Quality Certification- @ 50% of the expenditure incurred upto max Rs 2 lakh.

Electricity duty exemption for Mega projects (capex of Rs 100 cr & above): 50% for 5 years

Govt of Jharkhand Incentives

FAQs

• Developed plots are offered at competitive rate as compared to

similar facility at other EMC in India

• Industrial power tariff: Around Rs 6 per unit

• Core & shell structure are also available on outright sale (long

term lease) and rental models

• Assured State Government support in getting clearances

THANK YOU

If you have queries regarding EMC, please

feel free to write to:

mdjinfra@live.com

Phone: +91-651-2241306