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Gujarat-Industrial Infrastructure

Product ClustersGujarats manufacturing industry is supported by 0.34 million Micro, Small and Medium Enterprises (MSMEs).

Cluster development scheme has been launched for furthering the growth of product clusters which currently stand at 83.

Some successful clusters: Ceramics at Morbi, brass parts at Jamnagar, fish processing at Veraval, power looms at Ahmedabad.

Gujarat has 184 industrial estates established by GIDC (Gujarat Industrial Development Corporation) for specific sectors like chemicals, electronics, gems, apparel and granite.

State government initiatives include a modified scheme to provide financial assistance promote and encourage industrial parks by private institutions.Gujarat-Industrial InfrastructureKEY INDUSTRIESAgro and Food ProcessingDairyChemicals and PetrochemicalsTextiles and ApparelsEngineering and AutoGems and JewelryOil and GasPharmaceuticals and BiotechnologyInformation TechnologyMineralsPortsPowerTourismGujarat contributes 16% to the Indias industrial output.

These 13 major industrial groups together account for around 83% of the total factories, 94% of fixed capital investment, 93% value of output and 93% of value addition in Gujarats industrial economy.

Gujarat is a major player in industrial sectors such as chemicals, petrochemicals, dairy, drugs and pharmaceuticals, cement and ceramics, gems and jewelry, textiles and engineering.

The industrial sector comprises of over 800 large industries and more than 345,000 MSMEs.

Petroleum accounts for the highest industrial production in Gujarat with approximately 26% share, followed by chemicals at 21% and pharmaceuticals at 7% share. 2Gujarat-Industrial InfrastructureINDUSTRY HIGHLIGHTSGujarat is one of the largest producers of processed diamonds and wall clocks in the world.

Boasts of the worlds largest gas based, single location sponge iron plant.

Worlds leading producer of castor and cumin.

Third largest producer of denim in the world.

Possesses Asias largest grassroots petroleum refinery at Jamnagar (owned by Reliance India Limited).

Indias largest producer of cotton.

Home to Indias first LNG (Liquefied Natural Gas) port terminal at Hazira.Gujarat-Agro and Food Processing IndustrySECTOR SNAPSHOTThe agro sector contributes to about 18% of Gujarats GSDP (Gross state domestic product)

Cotton, groundnut, bajra, paddy, maize, jowar, sesame, castor and tur (pigeon pea) along with fodder and vegetables are the major Kharif crops. Area under cultivation stands at approximately 8.6 million hectares.

GAIC (Gujarat Agro Industries Corporation) promotes agricultural activities and aids development of agro industries in Gujarat.

Gujarats dairy sector consists of 17 district milk producers unions with around 14598 milk cooperative societies.

Gujarat positioned itself as the fourth largest milk producing state after UP, Rajasthan and Andhra Pradesh in early 2013.

The National Dairy Development Board in Anand is involved in promoting, financing and supporting milk distribution across India.

GCMMF (Gujarat Cooperative Milk Marketing Federation), a cooperative dairy giant sells Amul and Sagar brand of dairy products through a million retailers and approximately 5000 distributors.

GCMMF became the first billion dollar cooperative in India and registered a turnover of USD 2.5 billion over FY 11-12.

CropGujarats position in world productionShare of worlds production %Castor18Fennel167Isabgul235Cotton83.5

Key Districts in Dairy SectorGujarat-Agro and Food Processing IndustrySTATE GOVERNMENT INITIATIVES IN THIS SECTORDiversifying crops and cropping sectors.

Regulating contract farming opportunities.

Building a strong agriculture marketing infrastructure with help of market yards, cold storages, agriculture produce market committees.

Setting up a VSAT based multi commodity exchange at Ahmedabad.

Increasing use of high tech agro technologies like tissue culture, green houses and shed net houses.UPCOMING INFRASTRUCTURE PROJECTSPerishable cargo complex.

Banana pack house.

Port based agriculture cargo handling logistic hub.

Vapor heat treatment with integrated pack house.KEY PLAYERS IN AGRO AND FOOD PROCESSING INDUSTRYGCMMF (AMUL): Est. 1946. Market leader in butter, whole milk, dairy whitener, condensed milk, cheese.

Parle Agro: Est. 1984. One of the largest manufacturers of biscuits and confectionary in India. Manufacturing facility in Bhuj.

Vadilal: Est. 1907. Manufactures ice creams and frozen desserts. Exports processed products. Manufacturing plant in Pundhra (Gandhinagar).

Rasna: Est. 1984. 93% market share in powdered Indian soft drink concentrate market. Based in Ahmedabad. 7 manufacturing facilities with pan India spread. Gujarat-Textiles and ApparelSECTOR SNAPSHOTGujarat is the largest producer (33%) and exporter (60%) of cotton.

Technical textiles presents itself as the key emerging area of this sector.

There are over 3000 technical textiles manufacturing units in India. 1/3rd of them are in Gujarat.

The textile industry contributes around 6% to the total industrial production in the state.

Over 40% of the countrys art silk fabric is produced in Surat.

Gujarat is the largest producer of Denim in India (60-70%) and third largest in the world.

The technical textiles market is estimated to be of the value of 1.1 billion USD with a contribution of around 10% to total national technical textiles output.AREATEXTILE CLUSTERSAhmedabadCotton and blended fabric, denim, made ups, ladies dresses, textile machinery and spare parts.SuratArt silk fabric, synthetic textiles, zari manufacturing, embroidery, textile machinery and spare parts.UmargamModern power looms, synthetic suiting and shirting.JetpurHand printing and processing units.ManavadarCotton ginning.KutchTextile handicrafts.Gujarat-Textiles and Apparel7

Technical textiles are mainly concentrated in the cities of Ahmedabad, Vadodara, Surat and Kutch.

Packtech (64%), Hometech (10%), Clothtech (9%) and Indutech (7%) are the four largest contributors in this segment.

Key players in this sector are(organized ones):

AhlstromArvindDig JamWelspunSKAPSKusumgarRaymondsAshima GroupCTM Technical Textiles Ltd.TECHNICAL TEXTILES UNITS DISTRIBUTION OVER GUJARATTECHNICAL TEXTILES Gujarat-Textiles and Apparel8KEY DRIVERS OF TECHNICAL TEXTILES SEGMENT IN GUJARATStrong domestic demand of technical textiles in cement, horticulture, automobile , infrastructure industries respectively.

Industrial infrastructure and transport connectivity.

High raw material availability.

Availability of required skill sets.

Presence of non woven industry. Low consumption indicating High growth potential.INVESTMENT OPPORTUNITIESConventional TextilesGinning and ProcessingCotton and synthetic based spinning, weaving and processing units, cotton knitwearTerry towels/ Home furnishingHigh valued garment manufacturingTechnical TextilesProtective textilesAgro textilesGeo textilesAutomotive textilesHome textilesInfrastructure DevelopmentCotton Integrated Textile and Apparel parkGOVT OF GUJARATs DEVELOPMENT AGENDATextile market in Gujarat is pitted to touch USD 25 Billion by 2017.Growth is envisaged to be driven by technical textiles which finds use in 200 different products across sectors.Value addition to through focus on technical textiles.Attract 2000 new units with an investment worth Rs. 10000 crore via technical textiles mission.Aim to capture 50% of Indian market through technical textiles.New technical textiles zones to be developed in Surat and Ahmedabad.2% interest subsidy to be given for players in technical textiles on maximum amount of Rs. 2 crores.

Gujarat-Textiles and ApparelGOVERNMENT OF GUJARAT POLICY INTERVENTIONS IN TEXTILES AND APPAREL SEGMENTBasic customs duty on imported technical textiles machinery has been reduced from 10% to 5%.

Scheme for integrated textile parks: 40% capital subsidy to a maximum of Rs 40 crores on the total project cost on projects approved by the government.

100% FDI in textile sector allowed under the automatic route.

Support to create centers of excellence: 4 of them based on agro, geo, medical and protective textiles respectively.

Credit linked interest subsidy in technical textiles for purchasing new plants and machinery.Support to private developers who are intending to develop textile and apparel parks.KEY HIGHLIGHTS OF THE NEW TEXTILE POLICY 2012Objective of the new policy is to safeguard the interests of cotton farmers, better price realization in national and international markets and value addition in the entire chain.A slew of incentives include exemption in VAT (value-added tax) to the extent of 80-100% for a period of 10 years.Other incentives include conditional exemption in electricity tariff and stamp duty on plant land and machinery, assistance in infrastructure development and research and skill developmentThe new textile policy is expected to attract investments of over Rs 20,000 crore and create new employment opportunities for over 25 lakh people, 50 per cent of them being rural women, during the next five years period. This will also increase the states revenue and growth rate along with growth of the textile industry.In case of apparel parks and textile plants, the state government will offer 50% of the cost of infrastructure or a maximum Rs 10 crore as assistance.For centers of excellence, the government will give Rs 20 crore to Rs 30 crore in assistance. The police also offers interest subsidy in the range of 5%-7% to promoters of the textile industry.The state government has set aside Rs 70.46 crore for direct assistance to the textile industry.Gujarat-Chemicals and Petrochemicals10INDUSTRY SNAPSHOTAccounts for nearly 51% of the national production of chemicals.

Highest contributor to total national production of petrochemical products.

Gujarats contribution to national production in some segments:

Soda Ash: Approx 98%Salt: Approx 75%Petrochemicals: Approx 62%On shore crude oil: Approx 53%

Around 6500 chemicals and petrochemical products are produced in the state.

Leads all states in terms of investments committed in the chemical and petrochemical sector.

Large quantity of production of basic chemicals like caustic soda , caustic potash and chloromethane.

Largest supplier of bio fertilizers, seeds, urea and other fertilizers in the country.INVESTMENT OPPORTUNITIESHigh Performance ChemicalsPigments and coating productsEngineering PolymersFeedstock linkagesBio RefineriesPP Filament YarnAcrylic FibersGujarat-Chemicals and PetrochemicalsGujarats share in India (Value of annual output) Approximate valuesChemical and Petrochemical complexesRefineriesIndian Oil CorporationReliance India LimitedEssarChemical and LNG TerminalsLNG Terminal DahejLNG HaziraChemical port terminal DahejPetrochemical ComplexesReliance India Limited, Oil and Natural Gas CorporationChlor Alkali PlantsReliance India Limited, Indian Rayon, Shriram, Atul products,