From the Government of Maharashtra-MIDC

The Business Newsletter | 72th Edition – April 2016

MahaConnect

ContentsFrom the Desk

Auto and Auto Components

District Focus: Raigad

Special Focus : Delhi Mumbai Industrial Corridor

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Maharashtra is one of the biggest hub of auto andauto component industry. It contributes around 39percent of the total auto output of the country. Thestate houses big domestic and internationalcompanies. The presence of these companies hasgiven boost to the auto component ecosystem in thestate. With this thriving auto and auto componentecosystem, Maharashtra continuous to be thepreferred choice of auto major. This edition ofMahaConnect will showcases the opportunitiesMaharashtra has to offer in this sector.

Raigad has automatic advantage of being closer tothe ports. It is also closer to the big cities of Mumbaiand Pune. This has led to huge economic andindustrial development in this district. Thisnewsletter will cover the opportunities this districthas to offer to the industry.

DMIC project of Government of India is an importantinfrastructure project for the economic developmentof the country. With almost 29 percent of the DMICunder Maharashtra, Government of Maharashtrahas proposed to develop Aurangabad Industrial City(AURIC) in the DMIC influenced zone. Thisnewsletter will throw a light on the details of this cityend efforts to develop the DMIC zone.

We keenly look forward to your suggestion and

feedback in making MahaConnect more enrichingfor our readers. Please write to us atmahaconnect@midcindia.org. We also invite you tovisit our website www.midcindia.org for furtherdetails and opportunities the State provide in therealm of setting up industries in the State.

Regards,Sanjay Sethi (IAS), CEO-MIDC

From the Desk

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Auto and Auto Component Sector

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India Auto Industry is one of the largest in theworld. The industry accounts for 7.1 per cent ofthe country's Gross Domestic Product (GDP).The industry accounts for 7.1 per cent of thecountry's Gross Domestic Product (GDP).India isalso the prominent auto exporter and has strongexport growth expectation for the near future. Theindustry has attracted Foreign Direct Investment(FDI) worth USD 14.32 billion during the periodApril 2000 to December 2015.The Indian Autocomponent industry employs as many as 19million people both directly and indirectly. Overthe last decade , the Indian auto componentindustry has scaled three times to USD 40 billionin 2015 while exports have grown even faster toUSD 11 billion.

Maharashtra’s auto sector has one of the highestindustrial output in India and accounts forapproximately 38 per cent of the country’s outputof automobiles by value It is the leading autoindustry hub of the country with market share of21 per cent in India. The auto industry inMaharashtra has witnessed a significant growthwith CAGR of 49.3% from 2011 to 2014 in term ofgross valued added. State also has welldeveloped automotive ecosystems that employsmore than 40 per cent of the total manpoweremployed in the automotive industry in India

9.7 9.7 12.3 15.5 17.4 17.8 19.430.41.24 1.53 1.8

2.32 2.91 2.9 3.1

5.3

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20

30

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FY08 FY09 FY10 FY11 FY12 FY13 FY14 *FY20

Auto Domestic and Export Sales in India (in Million Units)

Domestic Export

68226

122649152179

0

50000

100000

150000

200000

2011-12 2012-13 2013-14

Gross Value Addition in Auto Sector in Maharasthra ( in INR

million)

CAGR 49.3%

Source: IEBF, CMIE

Auto and Auto Component SectorAuto and Auto Component Hub in Maharashtra

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Major Auto and Auto Component Hubs

• The major automobile centers in the state include Pune , Nashik ,Aurangabad, Mumbai and Nagpur.

• Pune is the largest auto hub of India with over 4,000 manufacturingunits in the Pimpri-Chinchwad region alone.

• Pune has “who’s who” of Indian Automobile Industry – Tata Motors,Mahindra & Mahindra and Bajaj Auto and international auto majorslike GM , Volkswagen , Mercedes .

• Aurangabad is major auto hub and is home to auto major like Skoda, Bajaj Auto , Goodyear tyres , Vorrac Engineering ,Balkrishna Tyres, Duro Valves amongst others

Dedicated Institutes

• Automotive Research Association of India is India’s premier automotive R&D, testing and certification organization is present in Pune

• Auto Cluster Development & Research Institute is works towards development of MSMEs ( Micro, Small and Medium Enterprise) in and around Pune to meet expectations of OEM’s

Auto Hubs

Pune

Aurangabad

Nashik

Mumbai

Nagpur

Auto and Auto Component SectorKey Players in Maharashtra

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Government of Maharashtra Initiatives• The Government of Maharashtra came out with Industrial Policy in

2013 with the main objective of giving boost to the industrial growthand employment in the state . Following which , many diverseindustries have set up their base in the state. This has led to stateretaining its leadership position in manufacturing output.

• Key Features of the Policy :

• Under the new Industrial Policy 2013-18, Mega and Ultra Megaproject can qualify for fiscal incentives up to 100% of the fixed capitalinvestment.

• Moreover, 10% additional incentive on top of the above mentionedincentives is provided by the state if the project creates double theemployment required for the eligibility

• VAT refund under Industrial Promotion Subsidy for eligible MSMEs• 100 per cent stamp duty exemption to eligible MSMEs units for

acquiring land and for term loan purpose for eligible period• 100 per cent electricity duty exemption to eligible MSMEs units for

eligible period

Raigad Snapshot

District Focus: Raigad

Demographic Snapshot

Population (thousands) 2,634

Literacy Rates (%) 83.14

District Income (Crore) 34,377

Geographic Snapshot

Area ( thousand Sq Km) 7

Talukas 15

Major Cities 31

Industrial Snapshot

No. of Factories 1516

Total Factory workers 1,01,563

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Raigad is located in the Konkan division of Maharashtra with having Sahyadri ranges in the east and Arabiansea in the west. It is surrounded by Thane District in the north, Pune district in the east, Arabian sea in the westand Ratnagiri district in the south. Raigad district is divided into four sub-division with fifteen talukas and 1967villages. The district headquarter is at Alibaug.

Raigad Administrative Setup

District Focus: Raigad

• Raigad is one of the most industrially developed district along thecoastline of the Maharashtra

• It is well known for its beaches

• It is a well developed industrial zone due to the presence of the JnPTport and its proximity to both Mumbai and Pune city.

• It has presence of the chemical, pharmaceutical, steel, foodprocessing and engineering industry.

Raigad District

Road

Raigad is connected to Mumbai via the Sion-PanvelExpressway. The Mumbai-Pune expressway and NH-4passes through Panvel. The total length of NationalHighway and State Highway in this district is 154 km and1101 km respectively.

Physical and Social Infrastructure

Railways

The Konkan Railway line starts at Roha and passesthrough Mangoan and Veer in the Raigad district.TheCentral Railway line of Mumbai to Pune passes throughthis district. It is considered as the gateway to travellingsouth from west. The total length of railway line is 299kms

Airport

Mumbai and Pune Airport are the nearest airports. The newgreenfield international airport for Mumbai is planned atKopar-Panvel area of the Raigad district which falls withinthe Mumbai Metropolitan region.

Education

Pune district has 15 ITI and ITC to cater to the skillrequirement of the heavy industries. It has 37 technicalInstitutes and higher educational institutes to cater to thegrowing demand of industries for semi-skilled and highlyskilled resources

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District Focus: RaigadInvestment Opportunities

Key Industry Players

ChemicalSteel & Iron Food Processing &Beverages

• Raigad is an important destinationof the food processing andbeverages industry in the state.

• Roha, Taloja, Khalapur are theimportant industrial area within thisdistrict where food processingindustry have been established.

• Pepsico, Kellogs, Parle, RuchiSoya are some of the key playerswhich are set up in this district

• Mahad Chemical zone is one of thespecialized chemical zone in Raigadhousing big chemical industries.

• Some of the big giants of the chemicalindustry located in this region are AsianPaints, Pidilite, Rashtray ChemicalFertilizer Co, Reliance Industries, VinatiOrganics, Hikal Chemical, Camlin BECChemicals, Aditya Birla Nuvo, Clariant,amongst many others

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• This Raigad district is rich in mineral resources such as iron.

• At the same time, there is a huge demand for steel from the auto and engineering sectors

• Due to availability of raw material and marketplace , many steel and iron plants are set up in this region

• Some of the big steel companies established up here are POSCO, JSW Steel, Maharashtra Seamless, Bhushan Steel, Forton, Uttam Galva Steel amongst others

Special Focus : Delhi Mumbai Industrial Corridor (DMIC)

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DMIC is developed along Dedicated Freight Corridor (DFC) connecting NCR-Delhi region through 6 states to JNPT and MBPT ports for smooth and easytransit of freight. DFC covers an overall length of 1483 km between Delhi andMumbai.State sponsored Industrial Development Project of Government of IndiaThe Corridor passes through 6 states : Rajasthan 39%, Gujarat 38%,Maharashtra 10%, Haryana 10%, NCR of Delhi 1.5%, Uttar Pradesh 1.5%

Major expansion of infrastructure and industries- including industrialclusters.Rail, road, port and air connectivity in the states along the routes of the corridorThe corridor, stretches across 2,700 km with an additional 5,000 km of feederlines connecting Mumbai to West Bengal.

DMIC Project in MaharashtraMaharashtra is the second largest state in terms of population and it is spreadover nearly 10 percent of total area of India. The DMIC projects covers 8districts of Maharashtra. It passes through Dahanu Road, Virar, Vasai Road,Diva and terminates at the Jawaharlal Nehru Port in Navi Mumbai. 29% of areaand 26% of the population of the state falls within the influence area of DMIC.4 major development nodes have been identified in the influence area of DMICi.e.:i. Shendra- Bidkin Industrial Area, Aurangabadii. Igatpuri-Nashik-Sinnar Investment Regioniii. Pune-Khed Industrial Areaiv. Dighi Industrial Area

Special Focus : DMIC - Aurangabad Industrial City (AURIC)

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AURIC city is being developed as part of the one of four DMIC influenced zone inMaharashtra. It will be developed in two phases. Phase I is the development ofthe Shendra Mega Industrial Park. Phase II is the development of the BidkinMega Industrial Park.

The project of the Shendra Mega Industrial Park is located along the Aurangabad– Jalna (NH – 753A) about 20 km from the Aurangabad , 220 km from Nashik ,255 Km from Pune & 365 Km from Mumbai. The nearest railway station isChikalthana- 10 Km and Aurangabad- 20Km.The nearest domestic airport isChikalthana (Aurangabad) which is 10 km from the site.

A Special Purpose Vehicle (SPV) is formed between DMIC trust and MIDC forthe implementation of this project. The SPV is named Aurangabad IndustrialTownship Limited – AITL. The SPV will have its own set of DCR rules and will actas a single point of contact for building and water permission. AITL will also applyfor power distribution licenses from MERC. Apart from this, it will also managethe day to day activities of the industrial city.

The total land requirement for Phase I and II is 4000 and 6082 Ha out of which3200 ha has been acquired and the total 1082 land has been notified.

The AURIC city will be one of the first Industrial smart city which will use thelatest Information and Communication technology (ICT) to provide city wideservices on basic infrastructure. The city will have dedicated land options for allsizes of industries such as Mega, Large, Medium, Small and Micro enterprises. Itis developed to have targeted cluster for automobile, Electronics, Pharmaamongst others

FeedbackFor feedback, write to us at: feedback@midcindia.org

Maharashtra Industrial Development CorporationUdyog Sarathi Mahakali Caves Road, Andheri (E), Mumbai – 400 093Phone: +91-022-26870052/54/73; Fax: +91-022-26871587Email: mahaconnect@midcindia.org

Knowledge partner

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From the Government of Maharashtra-MIDC

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