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Research Report on IT sector in Maharashtra, India.
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Magnificent MaharashtraOpportunities Unlimited
Knowledge Partner
Information Technology
An engine for Global Economic Growth
Maharashtra Profile
With 9.4% of India’s population, Maharashtra has 18.4%
of industrial production.
Soci
alEc
onom
icIn
dust
rial
Maharashtra:§ Highest State Domestic Product
§ Highest aggregate bank deposits and gross credits
§ Highest contribution to India’s corporate tax
collections (61%)
§ Most urbanized State
Soci
alEc
onom
ic
* Maharashtra’s GSDP contribution to India’s GDP is at current prices
Source: Socio-Economic Review , Maharashtra 2010-11; Annual Survey of Industries 2008-09
42.4
76.9
8.5
8.7
0.0 20.0 40.0 60.0 80.0 100.0
Urbanization
Literacy Rate
Industry growth rate
GSDP growth rate
Percentage in Maharashtra
9.4
9.4
14.7
15.3
18.4
27
30
33
38
87
Geographical Area
Population
GDP contribution
Employment
Industrial Output
Exports
Software Export
Bio Tech
Auto & Auto Components
Wine
Percentage of Maharashtra in India
Maharashtra Profile
Road Road Connectivity India Maharashtra
Total Length of National Highway (in km): 70,934 4,376
Total Length of State Highway (in km): 1,31,899 34,102
Total Length of Major District Roads(in km): 4,70,000 49,901
Total Length of Other District and Village Roads (inkm): 26,50,000 1,51,661
- 97.5 % of the villages are well connected with all weather and 2 % by fair weather roads in the state.
Railway Railway Connectivity India Maharashtra
Total Length of Railway network (in km): 64,755 5,983
-The state encompasses 2 major railway zones; the Central and Western- 9.4 % of total railway network in the country-The railway route length per 1,000 sq. km of geographical area is 19.44 km in the State as against 19.69 km in the country. (as on 31st March, 2010)
Source: GoM (2010), Economic Survey of Maharashtra 2010-11, Mumbai: Directorate of Economics and Statistics, Planning Department.
Source: GoM (2010), Economic Survey of Maharashtra 2010-11, Mumbai: Directorate of Economics and Statistics, Planning Department.
Maharashtra Profile
Airport Airport Connectivity India Maharashtra
Total No. of Airport: 449 22
Total No. of International Airports: 17 3
Total No. of Domestic Airports: 114 5
- JNPT in Maharashtra is India's largest container port (59.4%).- 20.5% of the total cargo traffic of the major ports in India is handled by the state (3rd highest)
Port Port Connectivity India Maharashtra
Coast-line (in km): 7,517 720
No. of Major Ports: 12 2
No. of Minor and intermediate Ports: 187 48
Container traffic (in TEU million): 6.89 4.15
-Maharashtra is well connected to major cities in the USA, EU,Asia and other Indian metropolitan cities.-The state has the highest number of airports in the country .
Source: MIDC, AAI and MADC
Source: GoM (2010), Economic Survey of Maharashtra 2009-10, Mumbai: Directorate of Economics and Statistics, Planning Department.
Maharashtra ProfilePower Power Facilities India Maharashtra
Electricity Generation Capacity (in MkWh): 77,15,510 81,345
Installed Capacity (in MW): 1,73,626 19,166
-Out of 1396 Government ITIS being developed in India in PPP mode, 266 are in Maharashtra- India’s 18% of ITIs is in the state with a 20 % seating capacity
IT/ ITeS IT/ITeS Facilities India Maharashtra
Total no. of Industrial Training Institutes: 2,133 388
Total no. of Industrial Training Centres: 5,906 297
Total seating capacity: 11,15,628 1,21,744
- Maharashtra has the largest installed electricity generation capacity
Source: dget.nic.in, April 2010
- Highest number of approved SEZ in the country are in Maharashtra
SEZ Special Economic Zones India Maharashtra
Notified SEZs: 377 63
Approved SEZs: 738 143
Source: http://www.sezindia.nic.in/index.asp & Maharashtra Industries Department, September 2010
Source: GoM (2010), Economic Survey of Maharashtra 2009-10, Mumbai: Directorate of Economics and Statistics, Planning Department.
Global IT Sector
Global IT services industry
► Across the world, computing hardware spending increased by6.4% in 2010
► IT services spend increased by 1.4 per cent in 2010, withinwhich IT outsourcing grew by 2.4%, BPO grew by 4%. WithinIT outsourcing, global sourcing grew by 10.4% in 2010
► Worldwide software spending rose by 3.7% in 2010
IT Service Industry Structure
BPO Engineering Service
Computer Services Infrastructure Management Services
Offshore/Outsourcing Packaged software (Software Products)
Research and Development (R&D) Remote Infrastructure Management (RIM)
Source: The IT-BPO Sector in India – Strategic Review 2011 Executive summary, Nasscom
Global IT spending has increased by 4% on 2010
INDIA IT & BPO SECTOR
57.00%24.00%
19.00% IT Services
BPO
Engineering services and software product
Indian IT services industry
► The sector is expected to grow by 19.2% and reachUSD 88.1 billion in 2010-11 as compared to USD 73.9billion in 2009-10
► The domestic market (including hardware) grew by16% in FY2011, to reach USD 17.35 billion
► The data center services market is forecast to grow atCAGR of 22.7% between 2009 to 2011
► The industry is expected to add 2,40,000 jobs inFY2011, thus providing direct employment to over2.5 million and indirectly employing 8.3 million people
► Export revenues are estimated to gross USD 59billion in 2010-11 as compared to USD 50 billion in2009-10
► US and UK IT services are witnessing a shift towardsoutsourcing services.
► Indian software product segment is estimated toreach USD 3.46 billion
Revenue break-up trend and contribution to GDP
05
101520253035404550
FY04 FY05 FY06 FY07 FY08 FY09
USD
bill
ion
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Export Domestic % of GDP
Break-up of exports by service line, FY11
Source: Information Technology Annual Report 2010-11
Hardware and IT Services account for 75% of total revenues
Indian BPO services industry
► In 2010, the domestic BPO market was worthUSD 1.1 billion. The domestic BPO segment isexpected to grow by 16.9% to reach USD 2.8billion in FY2011.
► Drivers of demand are voice based services,emerging verticals, new customer segment andvalue based transformational outsourcingplatforms.
► BPO Exports is expected to grow from USD 12.4billion in 2009-10 to USD 14.2 billion in 2010-11
► India BPO exports segment is estimated to employ7,68,000 knowledge professionals in 2009-10
► BPO sector evolution - BPO 3.0 - characterised bygreater breadth and depth of services, process re-engineering across the value chain, increaseddelivery of analytics and knowledge based servicesthrough platforms, strong domestic market focusand SMB centric delivery models
The IT-BPO sector’s revenue is estimated to account 6.4% of country’s GDP in 2010-11
3.14.6
6.3
8.4
10.9
0.3
0.6
0.9
1.1
1.6
0
2
4
6
8
10
12
14
FY04 FY05 FY06 FY07 FY08
USD
bill
ion
Domestic Exports
CAGR: 38%
Source: NASSCOM IT-BPO factsheet,” NASSCOM website, http://www.nasscom.org
Indian BPO revenues
MAHARASHTRA - IT SECTOR
Maharashtra IT/ITeS Industry –The number story
► 90% of the India IT-BPO industry is concentrated in 7cities in India, including Mumbai and Pune in Maharashtra
► Maharashtra contributes over 30 per cent of thecountry's total export of software
► The State houses more than 1,500 software units
► Maharashtra’s IT sector grew at 24% from USD 2.091billion to USD 8.786 billion in 2008-09
► Pune witnessed the highest IT exports, contributing morethan half of the total at around USD 5,228 million,followed by Mumbai at USD 3,346 million in 2008-09
► The STPI units in Nagpur, Nashik, Aurangabad, andKolhapur also showed noteworthy growth
FDI in Information Technology Sector Maharashtra
Sector Total projects Investment (INR. crore)
IT/ITeS 762 12,765Source: IDM September 2010
Maharashtra IT sector is one of the topnotch sector in the State with maximum thrust, development and investments
Recent Initiative in Maharashtra e-Governance► Open Technology Centre (OTC)
► National e-Governance Plan (NeGP)
► Electronics Hardware Manufacturing
► Common Service Centres (CSCs)
► State Data Centres (SDCs)
► Community Information Centres (CIC)
► National Knowledge Network (NKN)
► State Wide Area Networks (SWANs)
► E-complaints System for the police
Maharashtra IT/ITes Industry
► Maharashtra offers software products for allindustry verticals such as Automotive,Engineering, Automation, Networking andHardware, Electronics, Energy, Telecom, Oil andPetroleum, Hospitality, Healthcare, FinancialServices, Logistics, Retail, e-Governance,Education etc.
► The majority of revenue for the State comesfrom US and Europe
► Aurangabad, Nagpur and Nashik are theemerging IT centres in Maharashtra
► Infosys Pune complex is the second largestfacility worldwide
IT Companies present in Maharashtra
CityNumber of IT / ITeS companies registered with
STPI as on March 2008
Mumbai 800
Pune 471
Nagpur 72
Aurangabad 15
Nashik 11
Kolhapur 3
Key IT locations in Maharashtra
Aurangabad
Nashik
Kolhapur
PuneThane
Mumbai
According to Nasscom and AT Kearney’s report ‘Assessment Of 50 Leading Cities', Puneis a leader in BPO services
Maharashtra IT/ITES Industry Value Chain
Research & Development
Product / Software Development
Consulting Outsourcing
IT Industry Value ChainIT Industry Value Chain
▪ Mumbai▪ Pune
▪ Pune▪ Mumbai▪ Thane▪ Nashik
▪ Mumbai▪ Pune▪ Nashik▪ Nagpur▪ Thane
▪ Mumbai▪ Pune
Key Strengths:
► 32 public IT park has been established by MIDC and CIDCO and four are in pipeline, with 4351 units andan investment of INR 18000 crore
► Maharashtra has 425 private IT park, out of which 88 are functional
► The prime IT/ITeS cluster are Greater Mumbai, Pune,Thane and Nashik
► Maharashtra has a strong presence across the value chain owing to its strong skilled manpower, powerfulventure capital interest, horizontal and vertical expansion of existing customer base into new markets, costcompetitiveness, superior infrastructure and Govt. support
Advantage MaharashtraHighest FDI in the Country
Single Window Clearance Mechanism
Investor Facilitation Cell
Highest contribution to India’s GDP
Strong presence across value chain
Presence of all top IT, BPO players
India’s financial hub
Abundant Land Bank
Strong Infrastructure
Worldwide Connectivity (Ports,Airports)
Abundant Natural Resources
Skilled Manpower and premiere R&D Centers
425 IT parks59 IT/IT Enabled
SEZ
Well established ITHubs – Pune,Mumbai
IT/ITeS Policy 2009Advanced infrastructureand superior connectivity
Business friendlyenvironment
Expanding ServiceLine
Strong InvestorAfter Care andsupport practices
Advantage MaharashtraAdvantage Maharashtra
MAHARASHTRA – Policy & Framework
Maharashtra IT Policy SupportIT/ITeS Policy - 2009
Source: IT/ITeS policy 2009
Package Scheme of Incentives, 2007
Key features of the policy
► Additional FSI for IT parks
► Recreational, residential and other support
facilities
► Eligible IT-ITES units covered under PSI will
be exempt from payment of Electricity Duty
► IT/ITES units will be supplied power at
industrial rates
► Property tax shall be levied on IT-ITES units
at par with residential rates
► VAT on sale of IT products will generally be
charged at the minimum floor rate
Key features of the PSI
►100% waiver of Stamp Duty
►Exemption from Electricity Duty
►Interest subsidy
►IPS (Industrial Promotion Subsidy)
►Refund of Octroi / Entry Tax in lieu of Octroi
►Special Incentives for Units coming up in the
low Human Development Index Districts of :
Gadchiroli, Yavatmal, Jalna, Nandurbar,
Washim, Dhule, Nanded, Osmanabad,
Buldhana, Chandrapur
Source: PSI, 2007
MAHARASHTRA – IT MANPOWER
Intellectual Capital of MaharashtraIT Manpower in Maharashtra
Sector Institutions
Capacity Admitted Students
Engineering 774 2,61,625 2,09,025Management Sciences
366 34,995 28,644
Industrial Training Institutes
726 1,49,156 1,34,712
Key IT Training Institutes in Maharashtra
Centre for Development of Advanced Computing
System Research Institute
Information Systems Audit and Control Association,(ISACA)
Centre for Materials for ElectronicsTechnology
Indian Institute of Science Education and Research(IISER)
Maharashtra IT/ITes Industry Manpower
► Maharashtra offers a sound educationalInfrastructure With maximum number ofuniversities in the country
► National Centre for Software Technology(NCST) an autonomous R&D Organisation ofthe Department of Electronics, Government ofIndia is present in the State
► Indian Institute of Technology offers variedcourses for IT sector
► NIIT, a part of the HCL group, has alliance withMicrosoft Corporation as training partner inIndia for training in Microsoft technologies andproducts and has its institutes at various locationin Maharashtra
► Xavier Institute and Narsi Monji Instituteof Management Studies imparts training onMicrosoft products and technologies
Source: Maharashtra Economic Survey 2010-11
MAHARASHTRA – IT INVESTMENT REGIONS
IT Parks & SEZ in Maharashtra
To Goa
To Gujarat
To Andhra Pradesh
To C
hhattisgarh
To Karnataka
To Madhya Pradesh
Mumbai - 162
Pune - 153
Nagpur -2
Aurangabad - 3
IT Parks in Maharashtra (March 2011)
Thane - 100
IT SEZ in Maharashtra (March 2011)
Total investment in IT Parks INR7750 Crores
Raigad - 1
Approved & Notified IT SEZ in Maharashtra
Vidarbha Region 1Marathwada Region 1Western Maharashtra Region 28
Konkan Region 26Total 56
1 SEZ
28 SEZ
Source: Industries Department, Maharashtra
Nashik - 4
•The above figures denote the private IT parks for which Letter of Intent (LOI) is issued as on March 2011
•Source: Directorate of Industries, Maharashtra
1 SEZ
Key Thrust Areas
Animation, Visual effects, Gaming and Comics
Medical Transcription CAD/CAM Services
IT Enabled ServicesIT Enabled Services
IT HardwareIT Hardware
IT SoftwareIT Software
Electronics and SemiconductorsElectronics and Semiconductors
IT/ITeS Industry – Focus Area
Data Mining, Data Warehousing
Legal Database processing
Information Services
IT Security and IT Risk Management services
Packaged software support services
Digital content development
Maharashtra is also promoting‘Green’ IT and electronichardware, as well as e-wasterecycling with several keyinitiatives in the State. The Stateoffers various incentives andbenefits for the key focus areas.
IT EcosystemIT Ecosystem
MAHARASHTRA – KEY PLAYERS
Maharashtra –The PowerhouseMaharashtra has a strong presencewith almost all the major ITplayers in the State.
Leading IT players in Maharashtra
Success story - Infosys Hinjewadi IT Park Pune
Infosys Campus Pune
Infosys was the first occupant in Hinjewadi IT park and has the second largest facility worldwide
Chairman and Chief Mentor, Mr. N.R. Narayan Murthy
“Pune has a credible work culture and offers some of India’s best high-
calibre technical manpower, which is vital for the knowledge-based
industry.
Even MIDC is extremely proactive helpful and customer friendly. The
infrastructure developed by it in the IT Parks are truly world class.”
KEY CONTACTS
Connecting further
Principal Secretary IndustriesRoom No. 114, 1st floor,Mantralaya Annex, MumbaiMaharashtra - 400032
Directorate of IndustriesNew Administrative Building, 2nd floor Opp. Mantralaya, Mumbai - 400 032
Maharashtra Industrial Development Corporation (MIDC)Head officeMaharashtra IndustrialDevelopment CorporationUdyog Sarathi,Mahakali Caves Road,Andheri(E), Mumbai-400 093
Principal officeMaharashtra IndustrialDevelopment Corporation4(A), 12th floor, World Trade CentreComplex, 1 Cuffe Parade, Colaba, Mumbai -400005