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Engineering & AutoGUJARAT
Presentation titlePage 2
USD 915Per capita income (at current price)
26Districts
50 million (5% of India)Population
196,000 sq. km (6.19% of India)Geographical Area
38% (vis-à-vis India’s 28%)Urbanization rate
USD 45.3 billionGSDP (at current price)
118 per 1000 persons (National Average: 57)Motor Vehicles
41 per 1000 persons (National Average: 26)Cellular Connection
1,354 units (National Average: 665)Per Capita Power Consumption
Source: Social Economic Review 2007-08
Gujarat
Growth Engine of India
Presentation titlePage 3
44.0%
37.8%
18.2%
Composition of GSDP as per Economic Activity
Primary Sector
Secondary Sector
Tertiary Sector
Primary Sector
Secondary Sector
Tertiary Sector
12.6%Average annual growth rate (2002-2007)
19.2% share in IndiaExports (2006-2007)
Over 1,200Large Industrial Units
Over 3,15,000Small and Medium Enterprises
Rs. 47,953 cr. (15.4% share in India)Value Addition
Rs. 3,07,955 cr. (16.1% share in India)Industrial Production
Rs. 1,19,565 cr. (19.5% share in India)
Fixed Capital Investment
9.11 lakhs (9.7% share in India)Workers engaged
14,055 (10% share in India)No. of Factories
Source: Annual survey of industries, 2005-06; Social Economic Review 2007-08
Industry Profile
Presentation titlePage 4
Share (%) of sector contribution in Gujarat and India
Source: Annual survey of industries, 2005-06
31.2
22.9
12.69.7
7.5 6.52.9 1.6 1
32.629.2
8.211.8
912.8
16.1
9.112
05
101520253035
Refin
ed P
etro
leum
Pro
ducts
Chem
icals
& P
harm
a
Engin
eerin
g Ind
ustri
es
Food
& B
ever
ages
Meta
llurg
ical In
dustr
ies
Texti
les &
App
arel
Mine
ral B
ased
Indu
stries
Rubb
er &
Plas
tic P
rod.
Pape
r & P
aper
Pro
ducts
% Share in Gujarat % Share in India3,07,955All Industry
2,987Paper & Paper Products
4,768Rubber & Plastic Prod.
8,890Mineral Based Industries
20,054Textiles & Apparel
22,967Metallurgical Industries
29,973Food & Beverages
38,889Engineering Industries
70,487Chemicals & Pharma
96,104Refined Petroleum Products
Production(in Rs. Cr.)
Sector
Industry Strength
Presentation titlePage 5
Power
§ Present power generation capacity is 9,628 MW; plans afoot to raise it to 25,000 MW by 2012§ Per capita power consumption is 1,354 units against the national average of 665 units§ Rich availability of natural gas (34 MMCD) and lignite (1,072 MMT)
§ 24-hour 3-phase uninterrupted power supply
Gujarat is the only State to carry out interlinking of rivers
§ An extensive water grid network of 75,000 km for irrigation and drinking§ It will cover 75% population of the state by 2010
Transformation of economy through natural gasGas
§ Gujarat State Petronet Limited (GSPL) supplies piped gas to 13 districts, 5 more districts will be added
§ Total length of Integrated Gas Grid will be 2,200 km, of which 1,453 km is complete and the rest is
§ under construction
Water
Dependable power supply – key to industrial development
Gujarat: Robust Infrastructure
Presentation titlePage 6
Gujarat Ports opening the gateway to prosperity
§ 42 ports along 1,600 km coastline, including 1 major port at Kandla and 41 minor ports
§ Landmark projects such as LNG port terminal at Hazira developed by Shell India Limited,
§ green field port at Mundra developed by Gujarat Adani Port Limited, LNG terminal at Dahej§ developed by Petronet LNG Ltd. and Pipapav port developed by Gujarat Pipapav Port Ltd
Ports
Airport connectivity – a cutting edge for business
§ 13 airports - Vadodara, Surat, Jamnagar, Rajkot, Bhavnagar, Porbandar, Bhuj, Pipavav,§ Mandvi, Mundra, Kandla, Palanpur and Ahmedabad (International Airport)
Airports
Rail and Road Surfaced road length – one of the highest in India
§ State-of-the-art road infrastructure: India’s first National Expressway from Ahmedabad to Baroda
§ Total road length is 74, 018 km - 95% surfaced road
§ Total rail length - 5188 km (8.25% of India)
Gujarat: Robust Infrastructure
Presentation titlePage 7
► Gujarat contributes to over 8% of India’s total engineering
output, and is home to several industrial units with
operations across the entire engineering value chain
► Over 300 units in large sector and over 75,000 units in
small and medium enterprises (SME) sector (excluding
repair and services)
► Major production base for sponge iron, steel pipes and
tubes, copper cathode, electricals, switchgear, transformer
and transmission line towers, heavy fabrication, ship
building and auto components
► 30 out of the 83 product clusters in the State are dedicated
to engineering and auto sector
► Major engineering clusters in Gujarat include foundry, ship
breaking, induction furnace industry, steel re-rolling mills,
brass parts, oil engines, fabrication, machine tools, auto
components and SS utensils
Share (%) of engineering sector in Gujarat’s industry
Source: Annual Survey of Industries 2004-05, Industries Commissionerate, Government of Gujarat
Share of Gujarat in national engineering sector output
12.72Value Added
10.1Value of Output
7.15Fixed Capital Investment
23.58Employment
29.03Factory (nos.)
3.70%
6.20%
8.30%
10.80% 11.10%
Automotive Electricals Metallurgical Fabricat ion Machinery
Gujarat: Engineering and Auto
Presentation titlePage 8
MetallurgyIndustrial
Machinery & Machine Tools
Auto industry & Others
Electrical industry
§ Steel
§ Steel re-rolled products
§ Foundry & forgings
§ Steel pipes
§ Fabricated Metal Products
§ Ship breaking
§ Steel & aluminiumfurniture
§ Brass parts
§ Textile Machinery & parts
§ Chemical machinery & parts
§ Food processing machinery & parts
§ Pharmaceutical and plastic processing machinery
§ Material handling equipment
§ Machine tools
§ Automobiles
§ Diesel engines & parts
§ Auto components
§ Shipbuilding
§ Power driven pumps
§ Electric motors
§ Switch gears
§ Transformers
§ Power transmission equipments
§ Power plants
Engineering and Auto sector: Strengths
Presentation titlePage 9
§ Hindalco’s copper smelting and refining complex at Dahej in Bharuch District is the world’s largest copper smelter at a single location with a capacity of5,00,000 tonnes a year
§ The Essar Steel complex at Hazira in Gujarat, India, houses the world’s largest gas-based single location sponge iron plant, with a capacity of 5.1 MTPA
§ Largest producer and exporter of SAW and ERW pipes
§ Ahmedabad based Shah Alloys Ltd. (SAL) is the country’s second largest stainless steel manufacturer
§ Brass parts cluster in Jamnagar, which has over 5,000 small units, meets 70% of requirements for brass parts in India
§ Largest ship breaking yard in the country located at Alang
§ Ahmedabad, Kutchh, Bhavnagar and Surat are major centres for the production of re-rolled steel
Metallurgy
§ Steel
§ Steel re-rolled products
§ Foundry & forgings
§ Steel pipes
§ Fabricated Metal Products
§ Steel & aluminium furniture
§ Brass parts
§ Ship breaking
Major projects
Advantage Gujarat
Presentation titlePage 10
§ Gujarat has emerged as an important production center for the manufacture of industrial machinery and machine tools
§ Larsen & Toubro has set up its heavy fabrication facilities at Hazira for manufacturing heavy equipment
§ Elecon Engineering Ltd. has emerged as the largest manufacturer of material handling equipment in India
§ Gujarat Apollo Equipment has emerged as the largest producer of earth moving equipment
§ Rajkot based Jyoti CNC plans to set up the country’s first R&D centre in Machine Tools
§ Ahmedabad, Anand, Mehsana, Surat and Vadodara are the major centres for the manufacture of Industrial machinery and machine tools
IndustrialMachinery &
Machine Tools
§ Textile Machinery & parts
§ Chemical machinery & parts
§ Food processing machinery & parts
§ Material handling equipment
§ Machine tools
Major projects
Advantage Gujarat
Presentation titlePage 11
§ Manufacturing of power generation equipment such as power plants, switch
gears and transformers (ABB, Alstom, Jyoti Ltd.)
§ Major manufacturer of transmission line towers
§ Kalpataru Power Transmissions has set up the largest capacity plant
in the World in Gujarat (55,000 tonnes per annum)
§ Largest manufacturer of glass shells for production of TV tubes (Videocon
International)
§ Vadodara, Surat, Bharuch, Ahmedabad, Mehsana and Gandhinagar are the
major centres for the manufacture of electrical equipments and machinery
ElectricalIndustry
§ Switch gears
§ Transformers
§ Electric motors
§ Transmission line
towers
§ Instrumentation
§ Power plants
§ Power driven pumps
Major projects
Advantage Gujarat
Presentation titlePage 12
§ General Motors, Atul Auto Ltd., Asia Motor Works, Munjal Auto India Ltd., Electrotherm and Ajanta are the important players in the sector
§ General Motors plant in Halol, Panchamahals is the major player having production capacity of 75,000 cars p.a.
§ Rajkot district in Saurashtra region has the largest cluster for production of Auto components and diesel engines
§ Maruti Udyog Ltd. plans to export 2.5 lakh small cars to Europe from MundraPort in Kutch
§ Largest manufacturing facility for electronic clocks – Orpat & Samay
§ Largest exporter of clocks from India (Ajanta)
§ Four large ship building facilities underway
Automobiles, Auto components &
Others
§ Automobiles
§ Diesel engines & parts
§ Auto components
§ Shipbuilding
§ Others
Major projects
Advantage Gujarat
Presentation titlePage 13
Foundry and Forgings
Steel re-rolled productsBrass parts
Fabricated metal products
Steel and Aluminium furniture
Electric motors
Power driven pumps
Textile machinery parts
Chemical machinery parts
Food processing machinery
Machine tools
Diesel engine and parts
Ball and roller bearings
Automobile and auto parts
Steel pipes and tubes
Steel MakingSteel
Making ForgingForging Fabrication Fabrication Engineering Ancillaries
Engineering AncillariesCastingCasting Machinery
ProductionMachinery Production
Automobile manufacturing / Ship Building
Automobile manufacturing / Ship Building
Presence across the Value Chain
Presentation titlePage 14
JamnagarBrass parts
Rajkot, Ahmedabad, JamnagarBall & Roller Bearings
AhmedabadAir & gas compressors and Industrial valves
Ahmedabad, Visnagar, RajkotPower driven pumps
Ahmedabad, VadodaraChemical machinery parts
Ahmedabad, Surat, SurendranagarTextile machinery parts
Ahmedabad, Rajkot, ValsadFood processing machinery
RajkotDiesel engines & parts
Rajkot, MorbiAgricultural Implements
Ahmedabad, Rajkot, VadodaraAutomobile parts
Bhavnagar, AhmedabadSteel re-rolled products
Ahmedabad, Rajkot, HimatnagarSteel & aluminium furniture
Ahmedabad, Bhavnagar, Rajkot, Baroda, Surat, Ankleshwar, Himatnagar, Vapi, Jamnagar
Fabricated Metal Products Lathes & Machine tools
AlangShipbreaking
Vadodara, AnandElectric motors
Ahmedabad, Bhavnagar, Rajkot, Anand, Baroda Castings & Forgings
Location of clusterEngineering industry
Ahmedabad, Anand, Baroda, Panchmahals,
Mehsana, Rajkot, Jamnagar, Surendranagar and
Kutch districts have emerged as important
locations
Source: Industries Commissionerate, Government of Gujarat
Dahej
Kandla
Jamnagar
Kachchh
Dholera
Baroda
Vapi
Ahmedabad
Gandhinagar
Surat
Rajkot
Panchmahal
Mehsana
Surendranagar
Bhavnagar
Morbi
SME Clusters: Key Engineering Destinations
Presentation titlePage 15
156AmreliE Complex Private Ltd.E Complex SEZ
121KutchhWelspunWelspunAnjar SEZ
105.67AmreliPSL Ltd.PSL SEZ
164.80KutchhIndian Steel Corporation Ltd.
Ruchi Flat Steel SEZ
145AhmedabadDishman Infrastructure Ltd.
DishmanSEZ
101VadodaraSuzlon Infrastructure Ltd.Suzlon SEZ
230AhmedabadNG Realty Pvt. Ltd.Gallops SEZ
267HaziraEssarEssarHazira SEZ
Area (hec)LocationDeveloperSEZ
Ahmedabad
Hazira
Kutchh
Amreli
Vadodara
Special Economic Zones (SEZs)
Special Economic Zones for Engineering
Presentation titlePage 16
DMIC Influence Area
Special Investment Region (SIR)
Petroleum, Chemical and Petrochemical Investment Region (PCPIR)
Ahmedabad-Gandhinagar Knowledge Corridor
Mumbai- Delhi High Axel Load Freight Corridor (DFC)
300 Km
Surat-Navsari
Vadodara-Ankleshwar
Palanpur - Mehsana
Ahmedabad-Dholera
Valsad-Umargaon
Bharuch-Dahej
Delhi-Mumbai Industrial Corridor (DMIC)
► Gujarat accounts for 38% (564 km) of total DFC
length (1483 km)
► The influence area of 150 km on either sides of
DFC is being developed as ‘Delhi Mumbai
Industrial Corridor’ (DMIC)
► 62% of total area of Gujarat State (18 out of 26
districts) would be benefited by DMIC development
► 82 links in the DMIC influenced area would be
developed offering connectivity between ports,
industrial estates, hinterlands, markets and points
of agricultural produce
► Four investment regions would be developed in the
first phase (2008-12)
Presentation titlePage 17
► Engineering and auto sector in Gujarat is supported with a well-established network of degree and diploma colleges
► 44 degree engineering colleges and 57 diploma colleges are spread across the State
► Indian Institute of Technology (IIT) Gandhinagar offers 120 seats for courses in Mechanical, Electrical and Chemical engineering
► Major courses being offered at college level to support the engineering and auto industry include
► Mechanical Engineering
► Electrical Engineering
► Production Engineering
► Fabrication Technology
► Instrumentation and Control Engineering
► Automobile Engineering
► Industrial Engineering
► Other institutions providing support to the sector include SpaceApplication Centre, Indo-German Tool Room, Electronics and Quality Development Centre, Entrepreneurship Development Institute, etc.
34535709
20540
0
5000
10000
15000
20000
25000
Degree Diploma Vocational trainingcourses
Technical manpower available for employment in the engineering & auto industry every year
Educational infrastructure supporting Engineering & Auto industries
5 5
17
44
57
Degree (parttime)
Advanceddiploma
Post diploma Degree Polytechnic(diploma)
Educational Infrastructure
Presentation titlePage 18
►Government has decided to recognise a cluster with a critical mass of a minimum of 50 units located within the radius of 10 km at a particular location
►Common facility centres for clusters to be encouraged►Under the scheme, assistance will be given to cluster association for carrying out certain activities
leading to further strengthening of the clusters.
Cluster development
►Gujarat has 60 SEZs approved by the Government of India, including:
►Multi-product SEZ at Kandla, Mundra, Surat, Jamnagar, Dahej, Dholera
►Sector-specific SEZs in textile and apparels, pharma, engineering, electronics & IT, etc.
►Gujarat is the first state in India to introduce labour flexibility in SEZs
SEZs to facilitate investment
► Interest subsidies at 5% to SMEs for setting up new units, expansion and modernization of existing units
► Interest subsidy at 3% to SMEs for technology upgradation of existing units►Financial assistance to SMEs for quality upgradation, including obtaining ISO–9000 and ISO–
14000 certification►Assistance for filing patents
Development of small medium enterprises
►Labour reforms to facilitate industrial investment to generate employment and ensuring productivity.
►Upgradation of industrial and urban infrastructure►Power reforms►Port-led development
Good governance
Support to Industry
Presentation titlePage 19
Heavy electrical industry§ Turbines, transformers and generators§ Boilers§ Switchgear and control gear
Industrial machinery and machine tools§ Modern cement and textile machinery§ Material handling equipment§ Oil field equipment and services, mining machinery§ Precision machine tools and renewable energy equipments
Metallurgy§ Blast furnaces, sinter plants§ Steel melting shop equipment
Investment Opportunities
Presentation titlePage 20
Dairy machinery§ Evaporators§ Milk refrigerators and storage tanks§ Milk and cream deodorisers§ Spray dryers and heat exchangers
Auto & auto ancillary§ Auto ancillary SEZ/ Park§ Assembling and manufacture of automobiles§ Manufacture of auto components for all types of vehicles§ CNG kits for automobiles, Industrial automotive bearings§ Automobile design centre
Centres of excellence§ Research and development facilities§ Industry-specific educational institutes and training centres
Investment Opportunities
Presentation titlePage 21
Gujarat offers a unique set of attributes that will translate into a sustainable position as an engineering off-shoring destination
Gujarat offers 24/7 un-interrupted high quality power for industrial purposeElectricity
Gujarat’s Position
Government of Gujarat is working on incentives and methods to facilitate and promote investments in the State
Government Support
Gujarat offers comprehensive supply of water at low cost
Gujarat offers highly skilled labour pool
Gujarat is well connected with the world through an international airport, world class ports and road network
Gujarat’s geographic position offers the possibility of a 24-hour business cycle
Gujarat is one of the fastest growing market
Government is taking special initiatives to help develop delivery model and vendor base to support offshoring
Gujarat’s talent pool is capable of meeting global standards
Gujarat dominates the talent pool needed to support engineering and auto sector
Gujarat has one of the lowest labour and set up costs
Discussion
Water supply
Increasing Productivity
Connectivity
Time to Market
Local Market
Delivery Capabilities
Quality of Talent
Talent Pool
Lower Cost
Value Proposition
Weak Position Strong Position
Destination Gujarat
Presentation titlePage 22
Kutch
Jamnagar
Porbandar
JunagadhAmreli
Bhavnagar
Rajkot
Surendranagar
Banaskantha
PatanMehsana
Himmatnagar
Kheda PanchmahalDahod
Vadodara
Bharuch Narmada
Surat
Navsari
Valsad
Anand
GandhinagarAhmedabad
Knowledge corridor
Chemicals, petrochem. pharma, textiles and
engineering
Industrial corridor(DMIC)
53 special economic zones (SEZs) across
Gujarat
Gujarat International Finance-Tec City
Petroleum, Chemicals and Petrochemicals Investment Region
(PCPIR)
Bio-Tech cluster
Soda ash and salt-based industries, cement and steel
pipes
202 industrial estates across Gujarat
Soda ash and salt based
Engineering and ceramics
18 Captive Ports along 1600 km coastline
across Gujarat
Special Investment Region (SIR)
Petroleum and brass parts
To Delhi
To Bombay
Savli Biotech Park
202 industrial estates across Gujarat53 special economic zones (SEZs) across Gujarat
A world- class Business Destination
Presentation titlePage 23
Industries Department, Government of Gujarat
Industrial Extension Bureau (iNDEXTb)
Gujarat Industrial Development Corporation (GIDC)
Gujarat Infrastructure Development Board (GIDB)
http://www.gujaratindustry.gov.in
http://www.indextb.com
http://www.gidc.gov.in
http://www.gidb.org
Industries Commissionerate, Government of Gujarat http://www.icgujarat.gov.in
Key Contacts
