Search - Investment Destination - Delhi-NCR - September 2012
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fter several years of consumption-led growth, India’s economic growth is now increasingly being fuelled by investment flows. While all the states are vying for the investors’ attention, Delhi-NCR manages to pocket a fair share of investments flowing into India from overseas and from within India. NCT-Delhi is the predominant growth centre in the entire NCR in terms of manufacturing/trading activity as well as concentration of employment.
Currently, industrialisation is concentrated in the sub-regions of Uttar Pradesh (general manufacturing), Haryana (automobile, electronics, handloom) and Rajasthan (marble, leather, textile). NCR accounts for a substantial part of the country’s production of cars (60%), motorcycles (55%) and tractors (25%).
Industrialisation in and around NCR is expected to receive a further boost through the creation of SEZs/industrial zones that are proposed in the region. An analysis of projects and investments being planned in the country reveals that NCR led by Delhi is going to attract a significant part of the investment. As per the data, the manufacturing sector in Delhi grew by 16.15% in the financial year 2011–12. If it is some respite to the ailing sector, the government’s new industrial policy has given a fresh impetus to industrial growth.
Delhi has been able to achieve a growth of 16.15% of Gross State Domestic Product (GSDP) for the manufacturing sector. The GSDP, at current prices for the manufacturing sector, was `13,844 crore in 2010–11 and has increased to ̀ 16,081 crore during 2011–12. GSDP, at current prices for the secondary sector (comprising manufacturing, electricity, gas & water supply and construction), has increased from `45,697 crore in 2010–11 to `54,501 crore in 2011–12, showing a growth rate of 19.26%. Plus, Delhi has the highest minimum wages in the country as well. Then again, the Annual Plan for Delhi for 2012–13 was recently finalised at `15,862 crore.
In future, while Delhi is expected to attract a lot of investments in services and in the hi-tech sector, the rest of NCR would attract manufacturing and other greenfield projects. However, the prerequisite to such economic and industrial growth is the creation of essential physical infrastructure in the region. In this regard, the NCR plan envisages investments of more than US$25 billion in the basic infrastructure, by 2021.
While the prospects look rosy, the recent power outage has shaken the confidence of the investors. Then again, strong and prolonged labour unrest over issues concerning political representation, minimum wage, contracts and working conditions of the labour is making the industrial ecosystem of NCR uneasy. Add to this clogged roads, inadequate transport system and the infrastructure inefficiencies, and we spell problems demanding immediate attention.
At the same time, promises are bright for Delhi-NCR as it is the ‘power centre’ in more ways than one, a capital region with potential to gain more capital investment. Aided by its advantages and getting stronger by overcoming the hurdles, prospects are sure to point Northwards!
ACAPITAL GAIN
Archana Tiwari-Nayuduarchana.nayudu@network18publishing.com
EDITORIAL
EDITORIAL7
CONTENTS
OPPORTUNITIES IN DELHI-NCRFor NCR, The Message Is Simple: Carpe Diem
13
BUSINESS PROSPECTSConstructing An Avenue For Global Investments
14
MANUFACTURING IN DELHI-NCRMANUFACTURING IN DELHI-NCRA Vital Cog In The Industrial Growth StoryA Vital Cog In The Industrial Growth Story
1616
SPOTLIGHT ON SECTORS Bullish With Growth Opportunities
18
DELHI-MUMBAI INDUSTRIAL CORRIDORThe Corridor Of Growth
22
BARRIERS TO GROWTHDampening The Prospects Of ‘Brand Delhi–NCR’
24
ALTERNATE POWER-GENERATING OPTIONSKeeping Business ‘On’ During Power Failures
26
PRODUCT UPDATE42
‘Reaching Out To The Investment Community With A Compelling Value Proposition Is Imperative’Malvinder Singh,Chairman, CII Northern Region & Executive Chairman, Fortis Healthcare
28
‘Delhi-NCR Is Growing To Become A Preferred Investment Destination’Raj Singh Rathee,MD, Kuka Robotics (India) Pvt Ltd
30
‘North India Offers A Huge ConsumerBase To The Companies’Ashok Kumar Gupta,Chairman, Crane-Bel International Pvt Ltd
32
‘Developing More Projects On The Lines Of DMIC Will Come As A Boon To The Growth Of The Region’Anil Sethi,MD & Spokesman of Management, Karcher Cleaning Systems Pvt Ltd
34
‘There Is A Need To Enhance The Region’s Competitiveness’Amit Kapur,Director, Everest Group
36
‘Infrastructure Is One Major Area Where A Lot Of Activities Are Taking Place In Delhi-NCR’SK Jain,CMD, Sumitron Exports Pvt Ltd
38
‘Delhi-NCR Is Far Ahead When It Comes To The Distribution And Service Industry’SN Rai,Co Founder and Director, Lava International Ltd
40
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13OPPORTUNITIES IN DELHI-NCRSEARCH - Supplement September 2012
hat is it that makes
Nat iona l Capi ta l
Region (NCR) a better
destination for setting up
a business? Why should a
manufacturer invest in NCR? What does
it take for a region to attract investment
and give investors a sense of reliance?
These are some of the questions for
which NCR has the correct answers,
thereby building investors’ confidence.
Here is a look at what makes NCR a
reliable choice for investment.
BUSINESS PROSPECTS NCR is the largest commercial hub
in India with a staggering 85 million
sq feet of office space under operation;
another 48 million sq feet will be
added over the next three years.
Gurgaon and Noida will contribute
to around 88% of this expansion.
Since the last decade, the NCR has
been consistently posting the
highest growth in per capita income
in the country.
The region also accounts for a
significant chunk of industrial
production in India. It is responsible
for the manufacture of 60% of its
cars, 55% of its motorcycles and
25% of its tractors. A number of
Special Economic Zones (SEZs)
are also coming up in the region.
CHARTING A ROADMAP Over $25 billion will be invested in
developing the infrastructure of
NCR by 2021.
Delhi-Mumbai Industrial Corridor
(DMIC) will create strong
economic foundations for
developing the logistics, industry
and commerce of international
standards. Under DMIC, more
than $90 billion will be invested in
creating infrastructure in NCR,
along with the states of Haryana,
Uttar Pradesh, Rajasthan, Gujarat,
Madhya Pradesh and Maharashtra.
Noida is emerging as a
semiconductor design hub of India.
Skilled workforce, relatively less
expensive infrastructure & lower
costs are contributing to Noida’s
rapid rise in semiconductor
manufacturing and design.
The upcoming Dwarka–Gurgaon
Expressway (also known as the
Northern Peripheral Expressway)
will boost connectivity in NCR by
linking Dwarka & Gurgaon with an
eight-lane expressway, starting from
Dwarka & connecting Palam Vihar
& forthcoming SEZs with Gurgaon
& will join NH-8.
Thus, NCR has built enough
reasons for global investments to
start pouring. It is now time for the
world to enter the doors of emerging
opportunities.
W
ForFor NCRNCR, , the Message is Simple:the Message is Simple:
CARPE DIEMCARPE DIEMThe National Capital Region (NCR) has the potential to emerge as the nation’s premier industrial, real estate and
commercial hub in the next two decades. With a large number of infrastructure and other development projects coming up in NCR, there is a promise, an encouraging sense of confi dence, that the region is primed to step up on
the global stage as a major industrial conurbation. All it has to do is carpe diem – seize the day!
The Bombay Stock Exchange (BSE) has opened an SME Exchange, giving NCR-based entrepreneurs access to opportunities to reduce their debt burden, improve company valuation, increase visibility, attract investors, manage equity ratios and reduce dependence on banks. Earlier, the options for SMEs were limited to taking costly loans from banks. Moreover, they had to return the loan in time even if their projects fail. However, by taking advantage of the SME Exchange, shareholders can share the burden in case of loss and reap benefi ts if the projects become successful. More than 100 SMEs from Faridabad and 500 from other regions of NCR can benefi t from the SME Exchange. SMEs with a paid-up capital of `10 crore can get themselves listed on the Exchange.
EMPOWERING SMEs
TARUN TAMPI
14 BUSINESS PROSPECTS SEARCH - Supplement September 2012
orth India has
traditionally been the
stronghold for the
manufacturing industry
to evolve and thrive on.
And with the rise in demands over the
last few decades, the scale of production
has escalated even further. As a result,
the region is witnessing rigorous
expansions with Delhi-NCR becoming
the focal point. Small pockets of Delhi,
Uttar Pradesh, Haryana and Rajasthan
have also come under the spotlight. The
Northern states undoubtedly remain
an integral part of India’s growth
opportunity as they constitute 7% of
the world’s population. The region
also contributes 25% to the country’s
GDP and accounts for 31% of its agri
GDP. Hence, NCR undoubtedly has
a huge market potential. Moreover,
the country capital also has an added
advantage of attracting global attention.
WHY INVEST IN NCR?This region has shown persistent
growth. According to a CII report,
the FDI inflow in the Northern region
has steadily increased to 28% between
2001 and 2012. According to Ajay S
Shriram, VP, CII, and Chairman &
Sr MD, DCM Shriram Consolidated
Ltd (DSCL), “The North, which has
a strong base of educated people, is a
very important part of India. The state
governments are very proactive in terms
of inviting investments. The average
GDP growth of the Northern India is
at par with the rest of India. Besides,
the market too is very strong here—an
attractive proposition for investors.”
The region is developing its
infrastructure to have better reach. Its
proposed industrial corridors across
Delhi, Uttar Pradesh, Haryana and
Rajasthan to be developed as part
of the Delhi-Mumbai Industrial
Corridor (DMIC) expects to change
the way the industry operates in this
region. Besides, the Western and
Eastern Dedicated Freight Corridors
will pass through Rajasthan (37%)
and Uttar Pradesh (57%). This will
not only improve the situation of
logistics here, but will also ascertain
this region’s speedy link to the various
ports. This, in turn, will make way
for capacity expansion and better &
improved availability of power, water
& infrastructure in the region.
Unlike other regions, which have
growing concerns pertaining to trained
and skilled workforce, North India
is likely to have about 33.4 million
students entering the higher and
vocational educational space by 2016.
This, in turn, will help in building a
huge skilled workforce.
NCR is also favourable for a
diverse group of industries for setting
their bases here. While the initial
development began from the auto
industry, today, the region is expanding
its purview towards various industries,
including medical and agro-based
industries. This will provide machine
tool builders scope to expand their
capabilities as well. Elaborating on
the NCR advantage, Richard Rekhy,
Country Head – Advisory, KPMG,
says, “Huge amount of consumption
takes place in Northern India. This
has created huge advantages for NCR.
Hence, manufacturers need to be close
to their consumers.”
WHAT NCR NEEDS…NCR’s large market, significant
resources and investment-friendly
policies make Northern states a
preferred investment destination.
Nonetheless, NCR needs to do more.
At a time when the global industry
is pursuing further expansion, NCR
needs to be proactive in showcasing
its capabilities. Regions like Gurgaon
and Noida have attracted MNCs who,
in turn, have made way for R&D
activities in the region. The region now
only needs a proactive effort from the
industry and the government to build a
stronger base to attract investments and
make way for further development.
debarati.basu@network18publishing.com
N DEBARATI BASU
for Gl bal InvestmentsConstructing an AVENUE
The Northern region of the country has for long been the crown of unparalleled industrial growth. Taking a step ahead, Delhi-NCR has grown to become the key attractor of investments for the manufacturing sector. Even amid growing competition from all quarters of the country, this region gives investors many reasons to invest here.
Regions like Gurgaon and Noida have attracted MNCs
who, in turn, have made way for R&D activities in the region.
The region now only needs a proactive effort from the
industry and the government to build a stronger base to attract investments and make way for
further development.
16 MANUFACTURING IN DELHI-NCR SEARCH - Supplement September 2012
ew Delhi has, for the
third consecutive time,
recently emerged as the
most competitive city in
the country. Taking a cue
from the National Capital, Faridabad,
the nearest city to Delhi, has also
improved its ranking with its growth,
states ‘The India City Competitiveness
Report–2012’ compiled by the Institute
for Competitiveness (IFC). According
to report, while New Delhi has managed
to demonstrate phenomenal growth
over a period of time by balancing
demand and development in equal
measure, it has been lagging as far as
administrative and institutional support
is concerned. Apart from this, Noida is
said to be giving tough competition to
other metro cities with its infrastructure,
while Faridabad, with its high
growth, has significantly improved in
its ranking and holds the 29th spot.
DELHI’S MANUFACTURING SECTORDelhi’s manufacturing sector grew
by 16.15% in FY2011–12. “If it is
some respite to the ailing sector, the
government’s new industrial policy
has given a fresh impetus to industrial
growth,” said Industries Minister
Ramakant Goswami recently. “Delhi’s
manufacturing sector’s contribution to
Gross State Domestic Product (GSDP)
has been able to achieve a growth
of 16.15%. The GSDP, at current
prices, for the manufacturing sector
was `13,844 crore in 2010–11 and
has increased to `16,081 crore during
2011–12,” he added.
GSDP, at current prices, for
the secondary sector as a whole—
comprising manufacturing, electricity,
gas and water supply and construction—
has increased from `45,697 crore
in 2010–11 to `54,501 crore in
2011–12—indicating a growth rate
of 19.26%. Delhi has got the highest
minimum wages in the country, which
has helped retain the labour and talent
with the industry, he explained.
POTENTIAL SECTORSThe potential sectors for investment
in the North include infrastructure,
manufacturing, healthcare, agriculture
and agri-business, tourism, IT &
ITeS. Recently, the Confederation of
Indian Industry (CII) has announced
N NISHI RATH
A vital cog in theA vital cog in theINDUSTRIAL GROWTHINDUSTRIAL GROWTH story story
Delhi is one of the well-developed states in terms of industrial development, and being the National Capital has always been an added advantage for it. Not only Delhi, but the nearby areas known as National Capital Region (NCR)
comprising Noida, Gurgaon, Faridabad and Ghaziabad also form a principal business and commercial centre of North India. Being one of the biggest consumer markets in the country, Delhi-NCR has been attracting investors. According to experts, factors like geography, connectivity and world-class infrastructure have helped the region grow. A report…
Salient Features Of The Delhi Industrial Policy Policy shift essential to change industrial profile from low-skilled to high-tech
and high-skilled. The policy asserts a six-pronged strategy: • Infrastructure development through better O&M of industrial assets • Facilitating business by simplification & e-enabling measures • Support skill development & other promotional measures like allowing
knowledge-based industries in industrial areas, among others • Decongesting industrial areas through redevelopment schemes • Promoting cluster development of high-technology and skilled industries in new
industrial areas through public private partnerships • Discourage polluting industries through higher infrastructure development fee
17MANUFACTURING IN DELHI-NCRSEARCH - Supplement September 2012
a mega event to revive investments in
the eight states of northern India. CII
Northern Region has revealed that
the first ever ‘Invest North’ conclave
is being organised in partnership with
the respective state governments in the
National Capital Region (NCR) in the
first week of November.
“The Northern states are keen to
seek fresh investments and forge new
partnerships that would enable them to
further leverage their growth potential
and regain their competitiveness.
‘Invest North’ is an effort to create
a platform for northern states to
strengthen business and industry in
this region,” said Ajay S Shriram, VP,
CII; Chairman, Invest North 2012
and Chairman & Sr MD, DCM
Shriram Consolidated Ltd. He added,
“Although the northern states have vast
potential and offer immense investment
opportunities from traditional sectors
like agro-products and textiles to
emerging sectors like biotech and IT,
they have lost their competitive edge
in recent times to other more proactive
states in Western and Southern India.”
NCR TAKES THE GROWTH PATHNCR accounted for 20% of the
total FDI in the country a couple of
years ago. According to experts, the
good infrastructure made them more
attractive FDI destinations. Regions
like Gurgaon, Noida, Ghaziabad and
Faridabad are some of the most eye-
catching regions for industries.
Gurgaon: Located in the northern part
of Haryana, Gurgaon is one of the most
important regions that contribute to the
state’s growth. Gurgaon is home to
major IT companies and a few leading
automobile companies as well. The
region is also known for its outsourcing
and offshoring services that contributes
the most towards the city’s economy.
IT, ITeS, auto manufacturing and
pharmaceuticals comprise of the major
industries in Gurgaon.
Noida: Known to have one of the best
infrastructural facilities, Noida has been
on the investors’ list for quite some time
now. Today, Noida is home to various
MNCs as well as domestic companies
like Birlasoft, Impetus, Adobe
Systems, TCS, CSC, HCL, ATC
Labs and Interra. The Noida Special
Economic Zone (NSEZ), the only
Central Government SEZ in northern
India, headed by the Development
Commissioner, provides excellent
infrastructure, supportive services and
sector-specific facilities for the thrust
areas of exports like gems & jewellery
and electronics software. Besides,
availability of skilled manpower makes
it ideal for setting up jewellery and
software development units.
Faridabad: This place is considered to
be one of the main industrial cities of
Haryana and comes under the region of
Delhi & NCR. The city is surrounded
by Delhi in the North, Gurgaon in the
West and parts of Uttar Pradesh in
the East and South. Newly developed
Faridabad or New Faridabad is
the most preferred destination for
industries, IT companies, corporate
bodies and government departments.
Apart from this, the arrival of leading
engineering companies like Eicher and
Escorts have given a new lease of life
to Faridabad’s die casting industry.
Around 25% business of Faridabad’s die
casting industry comes from OEMs.
As the auto industry relies heavily on
the die casting industry, Faridabad is
coming to the fore. Currently, it is the
second major centre for die casting,
after Gurgaon.
Ghaziabad: Known for its proximity
to Noida and Gurgaon, Ghaziabad
has come a long way and has made
it to the global map when in 2006,
US magazine, ‘Newsweek’, profiled
Ghaziabad as one of the world’s most
dynamic cities, along with Munich, Las
Vegas and London. Since then, for the
city, there has been no turning back.
ALL IT NEEDS IS THE RIGHT PUSH Today, Delhi stands at a crossroad.
There are several problems, huge and
complex, yet there are several unique
opportunities which can be explored in
turnaround development of the National
Capital. Citing his perspective on the
same, Vimal Mahendru, President,
Legrand India and Past President,
IEEMA, explains, “Although we
have good infrastructure in Noida and
excellent facilities in Delhi-NCR, we
need government policies that can
improve the condition of industries.
However, presently the industrial policy
is not progressive.” These opportunities
demand a paradigm shift in planning
and a good urban management system
that will pave the way for making the
region what it deserves to be.
nisi.rath@network18publishing.com
The Annual Plan for Delhi for 2012–13 was recently fi nalised at `15,862 crore at a meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and State Chief Minister Sheila Dikshit. Ahluwalia lauded Delhi’s performance in all sectors and highlighted a number of initiatives it has taken which have helped in expediting the pace of development. The new Plan, he added, will emphasise on urbanisation and issues that need to be fl agged for evolving a more comprehensive approach. Delhi’s Gross State Domestic Product (GSDP) increased from `1,00,325 crore in 2004–05 to `2,13,429 crore in 2011–12 and the per capita Net State Domestic Product (NSDP) was `63,877 in 2004–05, which increased to `1,19,032 in 2011–12 as against the all-India average of `38,005.
DELHI TO GET `15,862 CRORE
Key highlights of the region Prosperous and fast-growing
economy driven by services sector Second most favoured FDI
destination in India Biggest consumption centre in
India for consumer goods & cars
18 SPOTLIGHT ON SECTORS SEARCH - Supplement September 2012
auto & auto components healthc
are
agriculture & agri-busine
sstourism
IT &ITeTT S
u r r e n t l y , N C R
contributes about 25%
to India’s GDP and
accounts for 31% of
the agri GDP. The five
Northern states and the capital city
of the country have a higher capita
income than the national average. In
addition, North India offers a huge
consumer base as the region constitutes
7% of the world’s population—with
a high spending ability. This data
speaks volumes of the potential that
the region holds for companies who
are planning to invest here and expand
their businesses. Commenting on the
opportunities that the region offers,
Malvinder Mohan Singh, Chairman –
Northern Region, CII and Executive
Chairman, Fortis Healthcare Ltd,
says, “The Northern states have vast
potential and offer immense investment
opportunities from traditional sectors
like agro-products and textiles to
emerging sectors like biotech and IT.”
SECTORS WITH MAXIMUM POTENTIALHistorically, the FDI inflow has been
higher in Western India, but the share
of the North has been increasing
steadily—it has risen from 22% in
2009 to 28% in 2012. Delhi-NCR is
home to the manufacturing units of
many global and domestic auto & auto
component manufacturers In addition,
policy initiatives, like National
Manufacturing Plan, provide an
impetus for the further development
of Northern states, especially Delhi-
NCR, to achieve a leading position in
manufacturing.
As per the Annual Survey of
Industries (ASI) of 2008–09, in
Haryana, motor vehicles, trailers, semi-
trailers and other transport equipment
constitutes about 43.2% of the total
industrial output. The engineering
sector, too, has a lot of potential. With
demand for infrastructure increasing
in the country, this sector offers great
prospects. The ASI data reflects that
the engineering sector, which includes
machinery, equipment and other
electrical equipment, contribute about
11.7% to the total industrial output
of Haryana, 4.8% to that of Delhi &
Rajasthan and 4.2% to Uttar Pradesh.
The basic metal and computer
hardware segment also has tremendous
scope for growth in NCR.
The chemicals & related sectors
along with the petrochemical industry
have also made their mark in NCR.
This can be gauged from the fact that
it constitutes about 4.7% to the total
industrial output of Delhi, 10.5%
C ARINDAM GHOSH
Bullish withGrowth Opportunities
The bulk of the FDI that India receives traditionally goes into the Western and Southern regions of the country. However, initiatives like National Manufacturing Policy, DMIC and DFCs have strengthened the competitiveness of Northern India along with Delhi-NCR. It has resulted in attracting more investments to the Northern region. This stretch offers a big market. However, much of it needs to be developed. Some of the sectors that have huge potential for growth in this region include infrastructure, manufacturing segments like auto & auto components, healthcare, agriculture & agri-business, tourism and IT & ITeS.
20 SPOTLIGHT ON SECTORS SEARCH - Supplement September 2012
of Rajasthan, about 23% of Uttar
Pradesh (this also includes coke &
refined petroleum products). Textile
is another sector that has potential in
Delhi-NCR. According to ASI data,
the share of textile along with wearing
apparel is 5.5% in the total industrial
output of Haryana, 16.6% in Delhi
and 12.5% in Rajasthan.
Also, the diverse agriculture base of
the region offers tremendous potential
for the food and fruit processing
industry in Delhi-NCR. The ASI data
reflects that the food sector constitutes
about 9.7% of the total industrial
output of Haryana, 25.4% of Delhi,
11.2% of Rajasthan, and about 17.6%
of Uttar Pradesh. To this, Singh adds,
“The North is rightly known as the
Food Bowl of the country with a share
of 30.8% in the country’s agricultural
produce.”
WHY INVEST IN DELHI-NCR?According to Richard Rekhy, Country
Head – Advisory, KPMG, Delhi-NCR
offers abundant raw materials and has
a strong consumer base. Additionally,
it has policy initiatives, which support
the creation of infrastructure. Further,
some states are trying to create a better
atmosphere to facilitate the smooth
flow of investments. A majority of
the states have an excellent track
record in this respect. According to
a study on ‘Doing Business in India
(2009)’ by the World Bank, four
Northern cities featured in the Top
10 among 17 Indian cities selected for
the study. These include Ludhiana in
Punjab which ranked 1st, Gurgaon in
Haryana which ranked 4th, New Delhi
which bagged the 6th spot and Jaipur
in Rajasthan, which stood at the 7th
position.
PARTNERSHIP BETWEEN THE GOVERNMENT AND THE INDUSTRY Both the government and the industry
are taking active steps to create a
favourable climate for the smooth flow
of investments. In terms of developing
modern infrastructure policy initiatives,
DMIC and Dedicated Western and
Eastern Industrial Corridors have come
as huge boon to promote the growth
of the industries in this region. In
Uttarakhand, the government is taking
active steps to encourage investments.
The state registered a staggering
CAGR of 25.3% during 2004–05 to
2010–11, which made it emerge as a
preferred manufacturing destination in
North India. As part of the initiatives
from the industry to encourage
investments in the region, CII will be
organising a summit later this year with
all the stakeholders. This event will
showcase the investment opportunities
in the Northern region. Elaborating
on the potential of the North, Ajay
S Shriram, VP, CII and Chairman
& MD, DCM Shriram Consolidated
Ltd, informs, “The Northern states
are keen to seek fresh investments
and forge new partnerships that would
enable them to further leverage their
growth potential and regain their
competitiveness.”
A LOT MORE NEEDS TO BE DONE In order to make Delhi-NCR a
favourable investment hub, there is a
need to take additional steps on the
lines of creating an attractive policy
framework comprising of effective
single window clearance systems like
GST, implementing State Industry
Facilitation Act, tax reforms and
easing land & power-related problems.
According to Rekhy, the states can
also opt for branding the region.
Ensuring these would play a key role
in promoting and fostering the growth
of these industrial verticals in the
region and making Delhi-NCR a more
investment-friendly destination.
arindam.ghosh@network18publishing.com
Improving the power scenario is very critical for the growth of all the sectors in Delhi-NCR. The government has taken active steps to encourage the private sector to participate in the power and energy segment, which can improve the availability of power for the development and expansion of various industries in the region. The participation of the private sector in power generation has increased as compared to public sector companies in most states. For example, in Uttar Pradesh, state-owned power generation, as a percentage of the total generation, came down from 56% in 2005–06 to 44.17% in 2010–11. According to a report from CII, a comparative analysis of the power situation in the Northern states (on technical, fi nancial and outlook parameters) reveals that Himachal Pradesh, Delhi and Rajasthan are the best performers. In 2010–11, defi cits in Himachal Pradesh were at a comparatively low level of 3.4%, thanks to the proactiveness of the government in exploiting the state’s hydro potential and reducing T&D and AT&C losses.Delhi has the lowest energy defi cits among all the Northern states at 0.3%. Peak defi cits are also comparatively lower than other states. Further, Delhi has one of the best working T&D systems in the North. A remarkable improvement in all the parameters can be seen since Delhi privatised its distribution system in 2002.Like Delhi, Rajasthan too has one of the lowest defi cits - both energy and peak defi cits. The Government of Rajasthan has been successful in anticipating the increase in power demand and has accordingly invested in increasing the installed capacity. During the period 2005–06 to 2010–11, Rajasthan had one of the highest Compound Annual Growth Rates (CAGRs) in terms of capacity additions, in both public as well as private sectors. Rajasthan’s success in attracting private investment can be seen from the fact that the percentage of the private sector in the total installed capacity in the state is 16.4%—higher than most other states. The state has also been successful in encouraging renewable energy.
RISE IN PRIVATE PARTICIPATION TO DEVELOP POWER
22 DELHI–MUMBAI INDUSTRIAL CORRIDOR SEARCH - Supplement September 2012
parliamentary panel
recently reviewed
the progress on
the Delhi-Mumbai
Industrial Corridor
(DMIC), one of the most
ambitious infrastructure projects
in the world with an estimated
investment of over $100 billion.
The project envisages doubling of
employment potential within five
years, tripling of industrial output
and quadrupling of exports from
the region. Recently, Commerce
and Industry Minister Anand
Sharma said that the perspective
plan for the entire corridor
has been completed. “Detailed
environmental impact assessment
for all the six cities is in progress
and we are aiming to secure
pre-clearances to ensure speedy
implementation,” he informs.
The Government of Japan has
committed $4.5 billion for the first
phase of the project across Uttar
Pradesh, Haryana, Maharashtra,
Gujarat, Madhya Pradesh and
Rajasthan. The minister said
that the Indian Government had
decided to finance the entire trunk
infrastructure in the townships
along the corridor, while the
internal infrastructure would be
A NISHI RATH
The CORRIDORof
With an aim to tap the huge opportunities likely to be thrown open by the Dedicated Freight Corridor (DFC) between Delhi
and Mumbai, a band of 150–200 km around both sides of DFC is being developed as the Delhi–Mumbai Industrial Corridor. The project,
one of the biggest, will help in developing the region as a global manufacturing and trading hub of India supported by world-class infrastructure and enabling policy
framework. Once complete, it will transform the region. A report…
The Government of India is developing a multi-modal high-axle load Dedicated Freight Corridor (DFC) between Delhi and Mumbai, covering an overall length of 1,483 km, with end terminals at Tughlakabad and Dadri in the National Capital Region (NCR) of Delhi and Jawaharlal Nehru Port at Mumbai.
It has also proposed the establishing, promoting and facilitating of the Delhi-Mumbai Industrial Corridor (DMIC) along the alignment of DFC between Delhi and Mumbai. The objective of DMIC, supported by world-class infrastructure, would be to optimise on the present potential, enhance the investment climate and promote the economic development of the region through the creation of a long-term enabling environment.
DFC will offer high-speed connectivity for high axle load wagons (25 tonne) of double-stacked container trains supported by high-power locomotives. The Delhi-Mumbai leg of the Golden Quadrilateral National Highway also runs almost parallel to the freight corridor.
An MoU related to the DMIC has been earlier signed between the Ministry of Economy, Trade and Industry (METI) of Japan and the Ministry of Commerce and Industry (MoCI) of India to explore the opportunities for mutual cooperation.
India is likely to relax the guidelines to encourage Japanese funds to invest in the ambitious $100-billion DMIC project.
The Department of Industrial Policy and Promotion (DIPP) has held a series of consultations with RBI offi cials on issues such as allowing the opening up of more Japanese Bank branches in India and permitting interest rate & currency swaps. DIPP, under the Commerce and Industry Ministry, has also proposed some relaxations under the priority sector lending for investment in infrastructure projects.
The DMIC project is important as it would help boost investment in the infrastructure sector and would also encourage overall economic growth of the country, which has slipped to a nine-year low of 6.5% in 2011–12.
The ministry has already circulated a Cabinet note to give 26% stake to the Japanese Government in DMIC Development Corporation (DMICDC). Several ministries, including the Finance Ministry, have given the green signal to this proposal.
The Cabinet had approved equity restructuring of DMICDC and an expenditure of `18,500 crore on the development of infrastructure in September 2011.
THE PROJECT
Growth
23DELHI–MUMBAI INDUSTRIAL CORRIDORSEARCH - Supplement September 2012
developed through Public
Private Partnership (PPP)
mode.
INTEGRATED CORRIDOR DEVELOPMENT APPROACH FOR DMICUnder the project, high-impact
market-driven nodes—
Integrated Investment Regions
(IRs) and Industrial Areas
(IAs)—have been identified
within the corridor to provide
transparent and investment-
friendly facility regimes. These
regions are proposed to be self-
sustained industrial townships
with world-class infrastructure,
road & rail connectivity for
freight movement to and from
ports & logistics hubs, served
by domestic/international air
connectivity, reliable power,
quality social infrastructure,
and provide a globally
competitive environment
conducive for setting up
businesses. An IR would be a
specifically delineated industrial
region with a minimum area of
over 200 sqkm (20,000 hectare),
while an IA would be developed
with a minimum area of over 100
sqkm (10,000 hectare). Around
24 such nodes—nine IRs and 15
IAs—spanning across six states
have been identified after wide
consultations with stakeholders,
i.e., the state governments
and the concerned Central
ministries. It is proposed that
six IRs and six IAs would be
taken up for implementation
in the first phase during
2008–12, while the rest of the
development would be phased
out in the next four years.
DMIC LOOKS AT…The developmental planning for
DMIC aims to achieve certain end
results with the implementation that
would ensure the realisation of the
envisaged vision for the project and
thus lead to economic development.
The major goals for DMIC are
doubling employment potential in
seven years, tripling industrial output
in nine years and quadrupling exports
from the region in 8–9 years.
The corridor, for which a company
has been incorporated, would have
a 4,000-MW power plant, three
greenfield ports and six airports. It
would also link 10 cities with over 10
lakh population, including Faridabad,
Surat, Delhi, Greater Mumbai,
Meerut, Jaipur, Ahmedabad, Pune and
Nashik. Industrial units would come
up along major transport arteries, such
as highways and railways, connecting
to ports to facilitate internal & external
trade. Thus, DMIC will create a
strong economic base and state-of-
the-art infrastructure in the region.
nisi.rath@network18publishing.com
Proposed Investment Regions and Industrial Areas in DMICPHASE I
S.No State Proposed Location Category of Region
1 Uttar Pradesh Dadri–Noida–Ghaziabad Investment Region
2 Uttar Pradesh Meerut–Muzaffarnagar Industrial Area
3 Haryana Faridabad–Palwal Industrial Area
4 Haryana Manesar–Bawal Investment Region
5 Rajasthan Kushkhera–Bhiwadi–Neemrana Investment Region
6 Rajasthan Jaipur–Dausa Industrial Area
7 Gujarat Vadodara–Ankleshwar Industrial Area
8 Gujarat Bharuch–Dahej Investment Region
9 Maharashtra Dighi Industrial Area
10 Maharashtra Nashik–Sinnar Investment Region
11 Madhya Pradesh Pitampura–Dhar–Mhow Investment Region
12 Madhya Pradesh Neemuch–Nayagaon Industrial Area
PHASE II S.No State Proposed Location Category of Region
A Haryana Kundli–Sonepat Investment Region
B Haryana Rewari–Hissar Industrial Area
C Rajasthan Ajmer–Kishangarh Investment Region
D Rajasthan Rajsamand–Bhilwara Industrial Area
E Rajasthan Pali–Marwar Industrial Area
F Gujarat Ahmedabad–Dholera Investment Region
G Gujarat Surat–Navsari Industrial Area
H Gujarat Valsad–Umbergaon Industrial Area
I Maharashtra Dhule–Nardhana Investment Region
J Maharashtra Pune–Khed Industrial Area
K Madhya Pradesh Shahjapur–Dewas Industrial Area
L Madhya Pradesh Ratlam–Nagda Investment Region
Project Influence Area of Delhi-Mumbai Industrial Corridor
Courtesy: Department of Industrial Policy & Promotion, Ministry of Commerce & Industries, Government of India
Courtesy: Department of Industrial Policy & Promotion, Ministry of Commerce & Industries, Government of India
24 BARRIERS TO GROWTH SEARCH - Supplement September 2012
INTERMITTENT POWER SUPPLYEvery one is aware of the power
shortage in Delhi and its neighbouring
regions, but the recent massive power
outage, when the Northern Powergrid
collapsed, made Delhi come to
a standstill. It also raised serious
questions pertaining to the National
Capital’s ‘power’ problems. More than
300 million people were affected by the
outage. It also affected the industries
based in and around Delhi-NCR. The
increasing gap between demand and
supply was cited as the chief reason for
the collapse of the power grid.
Industries across Delhi-NCR have
been grappling with power problems
for quite some time now and many
areas have been facing regular power
cuts of nearly 10–12 hours everyday.
Highlighting the issue, a recent
ASSOCHAM report stated that
industrial units, particularly SMEs,
in Delhi-NCR have been at the
receiving end of the power cuts and
voltage fluctuations. This may affect
their production by 60%. Additionally,
the frequent power cuts, especially
in Ghaziabad, Noida, Gurgaon,
Faridabad and Greater Noida, have
caused industrial units 50% losses
during April and May.
Discussing another power problem,
Vimal Mahendru, Past President,
IEEMA and President, Legrand India,
opines, “We need to ensure a robust
and updated network. Power theft and
free-electricity are both a bane and must
be dealt with severely. It needs strong
political will to ensure compliance.”
LOGISTICS ISSUES A company, while investing in a
particular state, looks at the various
logistics options available in the
region. Apart from road, rail and
air connectivity, major companies,
particularly those that deal with
exports, also look at proximity to a port
facility. Though Delhi-NCR boasts of
good road, rail and air connectivity,
the absence of port facility, at times,
mars the investment options for
manufacturing companies.
WATER SHORTAGEWater shortage is another barrier that
adversely affects the industrial growth.
According to a FICCI survey, water
shortage in Delhi-NCR has been a
concern for thermal power, chemicals,
textiles & cement industries. Around
60% of the respondents claimed that
the water shortage is affecting their
businesses. This shortage might rise
to 87% after 10 years. The survey,
‘Water Use in Indian industry’, said
that apart from inadequate availability
of water, poor water quality would also
adversely impact businesses. “While
inadequate availability is the major
risk facing the industries, others agree
that poor water quality is another
major risk in the running of business.
Sectors like pharmaceuticals, power,
food processing and agriculture feel the
brunt of poor water quality,” it said.
DEARTH OF SKILLED MANPOWER
The unavailability of skilled manpower
has been a major cause of concern.
It is a problem that has always been
present, but has now taken the shape
of a major block. The labour shortage
is also affecting the wages. Rising
labour cost may make Delhi-NCR lose
its competitive edge over other states.
If this was not enough, the unrest at
Maruti’s Manesar facility, followed
by Honda, have added to the state’s
woes. There is an urgent need for
labour reforms in the manufacturing
sector. “The latest debacle in Maruti
is a dampener. We may not see much
development towards Gurgaon if we
are not able to give a message of trust
and confidence,” adds Mahendru.
nisi.rath@network18publishing.com
NISHI RATH
Dampening the prospectsDampening the prospectsof of ‘Brand Delhi-NCR’‘Brand Delhi-NCR’
The National Capital boasts of a much better infrastructure when compared to other regions of the country. Despite this, Delhi-NCR is far behind states like Gujarat or Tamil Nadu when it comes to investments and industrial growth. Why does it lag? What are the major issues dampening the industrial growth? Here, we discuss some major issues
that are gnawing at the roots of the manufacturing industry in Delhi-NCR.
SEARCH - Supplement September 201226 ALTERNATE POWER-GENERATING OPTIONSALTERNATE POWER-GENERATING OPTIONS
he recent power
disruptions affecting
Northern and Eastern
India resulted in
hundreds of millions
of people being left without power.
The effect of this massive power
breakdown on the economy is still
being calculated, but what is certain
is that the loss was significant, and for
many businesses, preventable.
India is no stranger to power cuts.
Such outages are an unfortunate
reality during the summer when
peak demand shoots up. In addition,
population growth and economic
expansion have pushed the country’s
power infrastructure beyond capacity,
resulting in chronic power shortage
in key cities and industrial areas.
The Indian economy is poised
to continue on its high-speed
journey in the coming years,
leading to further increase in the
demand for power.
EFFECTS OF UNEXPECTED POWER OUTAGESIndia relies on coal for its expanding
energy needs. According to the
Ministry of Power, of the nation’s total
installed capacity, 205,340 megawatts
comes from nuclear sources (less than
3%). According to figures from the
Central Electricity Authority, the
nation suffered a supply shortfall of
8.6% in June this year. With the recent
problems in the supply of coal to power
plants and the projected increase in
the cost of coal from countries outside
India, the power situation is expected
to take a turn for the worse.
The effects of unexpected power
outages can wreak havoc on the
industry; for example, the automotive
manufacturing industry that relies
on an intricate system of just-in-
time logistics. Various suppliers work
independently to manufacture and
provide the parts that go into the
making of the finished product. When
a single supplier is faced with power
blackouts, their production stops and
their part of the logistics chain is
broken. If the outage is for a short
term, the supplier may be able to offer
the existing stock to fulfil orders and
keep the supply chain moving. When
faced with a longer blackout, or a
sustained sequence of outages, their
inability to supply can disrupt the
whole supply chain, which, in turn,
can lead to delays in finished products
at the end of the line. Such cases often
see financial penalties being paid by the
supplier and can result in the principle
supply contract being cancelled.
One thing is certain. The growth in
the Indian economy is being driven by
the industry. However, it is also just
as certain as the fact that the industry
cannot function without access to
reliable power. From manufacturing
to agriculture, oil and gas to biofuel
production, whatever the industrial
operation of any business, when the
T
Rental power is a relatively new phenomenon in India, yet it is a sector that is growing at an astronomical rate. While the Indian economy continues to expand, and the government is working towards devising solutions to resolve the power issue, companies need to understand that they have to optimally utilise the available choices, which will provide them a competitive edge. Companies need to realise that they have the power in their hands…they are no longer at the mercy of external forces determining the availability of power—if indeed, they choose not to be.
‘ON’ duringPower Failures
Keeping Business
27ALTERNATE POWER-GENERATING OPTIONSSEARCH - Supplement September 2012
power goes down, so does production.
Profitability and business sustainability
soon follow.
ADDITIONAL POWER OPTIONSWhile the Indian Government is
taking the necessary measures to curb
issues arising from energy shortages,
industrial power users can rely on
short-term rental power to alleviate
the effects of such occurrences on
their business. This is because failure
to comply with the agreed production
schedules could be detrimental to
revenue lines. It is, therefore, crucial
to include additional power options in
business continuity plans.
Faced with the ongoing supply
disruptions and the corresponding
pressure they place on a business,
it is prudent that companies look
to guarantee electricity supply via
alternative sources. This can be achieved
by purchasing and installing on-site
power generation capacity in the form of
stand-alone generators. Another option
is to take advantage of the services of
a specialised rental power supplier.
While both options have their merits,
the large amount of capital expenditure
associated with outright purchase of
generating equipment, plus the ongoing
cost of operation and maintenance, is
making more companies look towards
rental power as an increasingly
preferable option.
RENTAL POWER: A SOLUTION? Professional power rental companies
provide energy through diesel or
natural gas-run generator sets. The
use of rental equipment gives flexibility
to client companies in resource
deployment. Therefore, as the country
progresses through this period of
strong growth throughout all sectors,
and the corresponding demand for
power grows accordingly, it is vital that
industry leaders have options at hand,
which give them the guarantee that
their operations are ‘always on’.
The benefitsThere are a number of key financial
benefits of choosing rental power over
purchase:
Renting power generation equipment
eliminates the need for capital expenditure
on equipment
It incurs no large down payments or
interest costs and preserves borrowing
capacity. In addition, power rental
guarantees fixed and regular payment
schedules over an agreed term with
options to extend the rental period, if
required, which improves cash flow and
allows for more accurate budgeting.
The lead time for the purchase of
generation equipment can be anywhere
up to two years
Due to the ‘fast-track’ aspect of rentals,
companies that urgently need power
will find the rental option attractive.
Also, when making a decision between
purchasing and renting equipment, it
is important for a company to evaluate
the decision in light of the many
hidden costs that are incurred when
the equipment is purchased—insurance
is often overlooked by companies
seeking to purchase large equipment.
In addition, for equipment, such as
generators, there are many spare parts
and ancillary items that need to be
purchased regularly to ensure that the
equipment operates efficiently. Not
only do products such as spare parts
need to be purchased, but they also
require storage space to house them.
With a rental solution, all spares and
ancillary items are the provision of the
rental provider, enabling the customer
to budget more effectively.
Use of a rental specialist
Refuelling is an additional cost that is
often forgotten when the decision is
made to buy equipment. Refuelling one
generator is a time-consuming task; a
project site with 30–40 generators on it
will require the contractor to purchase
trucks and staff simply for refuelling.
Therefore, the use of a rental specialist
who includes refuelling in the rental
package can be an attractive option for
customers.
Issues with human capital get eliminated
All major equipment purchases will
require a company to staff the new
equipment, either by allocating existing
staff to the project, or by hiring new
employees. If a company does not have
employees available with the technical
knowledge to run the equipment,
they may be forced to hire new staff,
unnecessarily increasing a company’s
OpEx. This means that the use
of a company, which provides
turnkey rental services, can be
invaluable to a company that requires
equipment but simply does not have
the skilled and experienced staff to
operate it.
At times, it is tempting for
companies to minimise the number
of staff they require for operating the
equipment. However, this short-term
solution often leads to greater problems
in the long run. Heavy equipment, such
as generators, requires regular servicing
and maintenance in order to ensure
that they operate at peak efficiency.
A poorly maintained generator will
have greater fuel consumption, higher
emissions and may even break down
entirely, negating any cost benefits
that may have come from reducing
the number of technicians working
on a project site. Through a rental
provider, all service and maintenance
are included in the rental package,
ensuring that the equipment is always
running at peak efficiency.
OPPORTUNITIES ABOUND Rental power is one of the most
effective ways businesses can ensure that
they have consistent and reliable access
to the power they need to keep their
operations up and running. Reputable
and experienced rental power provider
deliver high quality, dependable
power that keeps industry moving. In
addition, the ability to rapidly deploy
power during emergency situations, or
when demand increases unexpectedly
is another major benefit.
V Radhakrishnan, Country Head,
Aggreko India
E-mail: V.Radhakrishnan@aggreko.in
28 OPINIONS & MORE SEARCH - Supplement September 2012
EASONS TO INVEST IN NORTH INDIANorth India offers huge
scope for expansion and
growth. The region’s
share in the national GDP stands at
25.6% (2010–11 at constant prices)
and it houses 30.5% of the country’s
population. Additionally, the region—
comprising of Delhi, Haryana,
Himachal Pradesh, Jammu & Kashmir,
Punjab, Rajasthan, Uttar Pradesh,
Uttarakhand and the Union Territory
of Chandigarh—constitutes 30.7% of
the country’s geographical area. The
implementation of the Delhi–Mumbai
Industrial Corridor (DMIC) and
Dedicated Freight Corridors (DFCs)
will hugely step up the connectivity of
the region with the rest of the country—
particularly with major cities and
ports that dot the Western & Eastern
coastlines of the country. In addition,
around 70% of the combined scope of
these corridors lie in the Northern states,
thereby facilitating rapid movement of
raw materials and goods through the
industrial hubs of the North. Also, the
move to set up National Investment and
Manufacturing Zones (NIMZs) has
come as a big boost in this direction.
The first such NIMZ is being planned
in Rajasthan. Besides, Uttar Pradesh,
Jammu & Kashmir and Rajasthan offer
immense opportunities for growth with
much of their huge markets yet to be
developed.
ROLE OF CIITo increase awareness among the
manufacturing fraternity about the
opportunities and potential in the
Northern states, CII will be organising
‘Invest North’ in November this
year. CII also plans to organise road
shows in major cities of the country
and inform domestic investors about
the USPs of the Northern states.
Moreover, to attract global investors,
CII has planned campaigns through
its global offices and overseas partners.
Enhancing competitiveness of the
manufacturing sector with special
emphasis on growth and development
of MSMEs is one of the focus areas on
the agenda of the CII Northern Region
(CII NR). In this regard, we are taking
various initiatives, such as sharing best
practices, encouraging study missions
to progressive locations and facilitating
an ‘innovation’ conclave, among others.
CHALLENGES IN THE WAYThe biggest challenges in the region
include lack of good infrastructure,
erratic power supply, availability of
skilled workforce and governance.
Besides being land-locked, it has
more connectivity problems than the
Western & Southern India that have
large coastlines & ports.
INFRASTRUCTURE INITIATIVES While the Government of India has
conceptualised the DMIC and Eastern
and Western DFCs, there is an urgent
need to accelerate the implementation
of these projects. There is also a need
to establish additional dry ports and
Inland Container Depots (ICDs). It
is critical to accelerate the creation
of infrastructure projects and remove
bottlenecks related to land, poor
inter-departmental coordination &
cumbersome clearance processes. Most
of these issues can be addressed by
setting up comprehensive infrastructure
departments in various states. For
R
The Northern region, including Delhi-NCR, has the potential to become one of the most favoured investment destinations in the country. CII is playing a
critical role in creating awareness among the manufacturing fraternity about the opportunities that this region holds for them. In an exclusive interview with Arindam Ghosh, Malvinder Mohan Singh, Chairman – Northern Region, CII and
Executive Chairman, Fortis Healthcare Ltd, highlights the importance of the Northern region for expanding business activities and talks about the various
initiatives taken by one the biggest industry associations in the country towards encouraging investments in the region. Excerpts…
Malvinder Singh
Chairman, CII Northern Region &
Executive Chairman, Fortis Healthcare
Reaching out to the investment community with a compelling value proposition is imperative
29OPINIONS & MORESEARCH - Supplement September 2012
instance, Rajasthan has already taken
up the lead by implementing a single
window clearance for such projects.
We have also set up a Special
Task Force on infrastructure &
investment as part of CII’s Advocacy
Agenda with the state governments,
and have proposed the setting up of
land bank corporations. Also, the
significant deficit in power generation
in the Northern region needs to
addressed through not only timely
implementation of various projects in
the pipeline, but also by leveraging
the hydro power potential of the three
hill states, viz., Himachal Pradesh,
Uttarakhand and Jammu & Kashmir,
which have a combined potential of
75,000 MW. Realising this potential
can create power surplus for the North.
OVERCOMING SHORTAGE OF MANPOWER The huge population of the Northern
states presents a unique opportunity
to overcome the shortage of skilled
manpower not only in the North,
but also in the rest of the country.
It is imperative to attract private
sector investment for skill building.
CII, along with the Government
of Rajasthan and Rajasthan State
Industrial Development & Industrial
Corporation (RIICO), has set up a
Skill Development Centre at Bhiwadi,
Rajasthan. We also have a Skill
Gurukul at Alwar (Rajasthan) and
are also planning to set up similar
centres at Bhiwadi & Nawanshahr
(Punjab). Also, CII NR has adopted
134 ITIs under PPP mode. We are
also organising a series of Faculty
Development Programmes for ITI
faculties. Skill gap studies are also
being worked out for the ‘tricity’ of
Chandigarh–Mohali–Panchkula.
POLICIES CREATING AN ENABLING ENVIRONMENT FOR INDUSTRIAL INVESTMENTOver the past two decades, the Southern
and Western states have implemented
investor-friendly policies and have
succeeded in creating an enabling
environment for industrial investment.
They have promptly responded to
the needs of businesses seeking to
invest, thus creating a strong brand for
themselves. Emulating the trend, in
the last two years, state governments of
Punjab, Haryana, NCT of Delhi and
Rajasthan have promulgated investor-
friendly industrial policies. CII, on
its part, is also working with the state
governments of the North to improve
the investment climate in the region.
For example, in Uttar Pradesh, we have
formed Joint Task Forces on power &
renewable energy, skill development,
branding up & MSME, agriculture
& food processing, industrial policy,
infrastructure, healthcare and
information technology for the overall
development of the state.
Another important role performed
by CII is to provide inputs to
the respective governments in
the formulation of their policies,
particularly the ones related to
industry, infrastructure, APMC Act
and other sectors. GST is another
area of advocacy for us at the state
level. We believe that it is important
to bring all Northern states onboard
for the adoption of GST. This tax
reform is very crucial for our economy
as it can easily add up to 1.5% to the
national GDP.
MAXIMUM GROWTH SECTORS The National Manufacturing Policy
provides a springboard for the
Northern states, especially Delhi-
NCR, to regain a leading position in
manufacturing. The region is home
to the manufacturing units of many
global and domestic auto & auto
components manufacturers. As per the
Annual Survey of Industries (ASI) for
2008–09, in Haryana, motor vehicles,
trailers & semi-trailers and other
transport equipment formed about
43.2% of the total industrial output.
The region also offers huge potential
for the growth of the engineering
sector. And with the demand for
infrastructure growing in the country,
this sector offers great promises. The
ASI data reflects that the engineering
sector contributes about 11.7% to the
total industrial output of Haryana,
4.8% to Delhi & Rajasthan and 4.2%
to that of Uttar Pradesh.
Chemical and other related sectors
along with the petrochemical industry
have also made their mark in NCR.
This can be gauged from the fact that it
constitutes about 4.7% in Delhi, 10.5%
in Rajasthan and about 23% of the
total industrial output in Uttar Pradesh
(including coke and refined petroleum
products). Textile is another sector
that has potential in Delhi–NCR.
According to the ASI data, the share
of textiles along with wearing apparel
is 5.5% of the total industrial output of
Haryana, 16.6% in Delhi and 12.5% in
Rajasthan. Apart from some of these
industries, basic metal and computer
hardware also have tremendous scope
for growth.
FIVE YEARS DOWN THE LINE...The North has always been a hub
of innovation and entrepreneurship.
However, some drift has been witnessed
in the recent past with entrepreneurs
looking towards Western and Southern
states. The National Manufacturing
Policy, with a focus on enhancing the
share of manufacturing to 25% of the
country’s GDP, is a great opportunity
for the Northern states to regain their
market share.
However, we require an attractive
policy framework comprising of
effective single-window clearance
system, state industry facilitation Acts,
tax reforms and easing up of land &
power-related problems. In addition,
states from the Northern region need
to focus more on brand building.
Recognising that the capital has global
mobility, it is important to proactively
reach out to potential investors and
respond positively to their genuine
requirements.
arindam.ghosh@network18publishing.com
30 OPINIONS & MORE SEARCH - Supplement September 2012
XPERIENCE OF OPERATING IN NORTHToday, North India
along with Delhi-NCR
has emerged as a huge
manufacturing hub. Companies are
looking at establishing their business
in this part of the country because
North India offers a huge market,
which remains to be tapped to the
fullest.
As far as our business is concerned,
we have witnessed tremendous growth
owing to the ever-rising interest
of big manufacturing players to
explore the region. Implementing
robots and automation solutions
are critical to achieve higher
efficiency and productivity. Further,
it makes the company more
competitive in the market.
WHY INVEST IN NORTH INDIA? With Delhi being the National
Capital, companies that establish
their operating base in Delhi-NCR,
can enjoy proximity to the Central
Government. Further, all the major
offices of the policy makers are located
in Delhi. This facilitates interaction
between the industry and authorised
personnel.
In terms of creating modern
infrastructure, the government has
taken active steps to implement
projects, such as DMIC. They have
also created a world-class international
airport in New Delhi and are planning
to establish a rail and road network to
enhance connectivity in the region.
The fact that a big proportion of
the country’s population is based in the
region helps in meeting the demand
for skilled workforce. Among the
other initiatives taken, some states in
North India, like Uttarakhand, offer
fiscal incentives to companies planning
to establish their manufacturing base
in the state.
MESSAGE TO COMPANIES Initially, what will come as a delight
to companies planning to set up base
here is that the region offers a huge
consumer base, which has a strong
spending ability. And the companies
have enough scope to capture the
market. I believe that for any company
to succeed irrespective of the region,
it needs to operate with creativity,
dynamism, innovation and focus on
the needs of customers.
ENHANCING DELHI-NCR’s PROSPECTS Presently, Delhi-NCR is fast becoming
a preferred investment destination.
Improving the power scenario in
Delhi-NCR will further brighten the
scope of the region for carrying out
business activities. Additionally, the
implementation of policies like GST
will come as a huge boon as it will
further the growth prospects of the
region. Further, introducing special
policy initiatives like tax benefits,
subsidies, etc., which are specific to the
region, can be considered as an option
to encourage further investments.
arindam.ghosh@network18publishing.com
E
KUKA Robotics (India) Pvt Ltd is part of the worldwide operating KUKA Robot Group. The company was incorporated in India in May 2006 and is
headquartered in Gurgaon. Within in a short span of time, KUKA India has built a strong clientele base, which comprises most of the major automobile and other engineering as well as non-engineering companies in the country.
In an exclusive interview to Arindam Ghosh, Raj Singh Rathee, MD, Kuka Robotics (India) Pvt Ltd, shares his thoughts on the experiences of operating
from Delhi–NCR & North India, and highlights the reasons to invest in the region. Excerpts…
Raj Singh Rathee
MD, KUKA Robotics (India) Pvt Ltd
Delhi-NCR is growing to become a preferred investment destination
Initially, what will come as a delight to companies planning to set up base here is that the region offers a huge consumer
base, which has a strong spending ability
32 OPINIONS & MORE SEARCH - Supplement September 2012
OTENTIAL OF DELHI–NCRT h e i n c r e a s i n g
competition in the
market, coupled with the
initiatives taken by the
government to develop state-of-the-
art infrastructure, have transformed
North India into the fastest growing
region in the country. Today, many
companies are opting for Delhi-
NCR to set up their manufacturing
base in India given the rising demand
that the region is currently offering.
I believe that companies, which have
strong business ethics and offer quality
products & solutions at competitive
prices, can survive for a longer term
and create a niche for themselves.
NORTH INDIA: AN INVESTMENT HAVEN Given the proportion of geographic
area it covers and the population
it houses, North India offers a huge
consumer base to companies. To
encourage investments in the region,
the government is also coming up with
some industry-friendly policies in states
like Uttarakhand. In addition, the
geographic location of Delhi-NCR is
strategic as it covers some of the major
states of the Northern region, making it
a major catchment area for companies.
Thus, investment in Delhi-NCR can
be highly effective for a company in
fuelling its business growth plans.
SCOPE FOR MACHINE TOOL INDUSTRY With the increasing level of business
activities taking place in the region,
one of the major sectors that has
maximum scope for growth and
expansion is that of machine tools.
Delhi, being the national capital,
has witnessed tremendous growth in
the last few years and the demand
for quality machine tools has grown
accordingly. However, adequate power
supply remains a challenge.
EXPANSION PLANSThough many in the Southern and
Western regions of the country are
luring me to invest in these regions,
I believe that the North offers the
maximum scope for expansion. To
support the growing demand for our
products, we are planning to establish
a state-of-the-art machine tool plant
in Delhi-NCR. Further, as part of
our initiatives to constantly innovate
and come up with better solutions to
enhance our services for our customers,
we also make substantial investments
in R&D for developing innovative
products.
arindam.ghosh@network18publishing.com
P
Crane-Bel International Pvt Ltd is one of the major companies operating in the machine tool and hydraulics segment in North India. The success of the company’s business in the region has been driven by high ethical standards,
complete reliability and indigenously developed high-performance machines. Ashok Kumar Gupta, Chairman, Crane-Bel International Pvt Ltd, in an exclusive interview with Arindam Ghosh, speaks on the importance of investing in North
India, especially in the Delhi–NCR belt, and throws light on the company’s expansion plans for the region. Excerpts…
Ashok Kumar Gupta
Chairman,
Crane-Bel International Pvt Ltd
North India offers a huge consumerbase to the companies
To support the growing demand for our products, we are planning to establish a
state-of-the-art machine tool plant in Delhi-NCR.
With an experience of 48 years in the fi elds of R&D, Design, Innovation and Development, Productivity Enhancement and keen interest to track the industrial development and analyse the market, Ashok Kumar Gupta, Chairman of Crane-Bel International Pvt Ltd has created a niche for his company in the Northern region. He is a mechanical engineer and completed his B. Tech from Delhi College of Engineering.
CREDENTIALS
34 OPINIONS & MORE SEARCH - Supplement September 2012
HY INVEST IN THE NORTH? We are based out of
Noida and operating
from such a suburban city
helps us leverage on the opportunity
that proximity to the National Capital
presents. Besides, it allows us to
operate at a low cost. Additionally, the
region also offers us a huge consumer
market, which is willing to pay the
price for procuring quality products.
As far as the market for our products
and solutions is concerned, we are
growing at a fast pace as we cater to a
host of industries that are experiencing
tremendous growth.
CHALLENGES FACEDWe have always looked at challenges
as opportunities. I do not think I have
faced major problems with respect
to growth and expansion of our
company’s business here, apart from
power, which remains a problem.
Nonetheless, we have established
power back-up systems to tackle this
challenge. Besides, finding the right
people, carrying out activities related
to expansion, etc., are some of the
business problems that we faced.
However, these are similar across the
country.
INITIATIVES TAKENThe government is playing a proactive
role to encourage companies to invest
in the North. They are not only
taking initiatives to ensure faster
approvals and clearances of projects,
but are also working on bringing in
more transparency into the policy
framework. If a company follows all
the guidelines and works accordingly,
it will certainly have a bright future.
The government’s initiatives helped
facilitate our transition process from
Man Machine to Karcher Cleaning
Systems Pvt Ltd.
INCENTIVES TO INVEST Initiatives for implementing faster
approval and clearances systems,
better & reliable power supply and the
establishment of modern infrastructure
will play a critical role in attracting
more investment from companies.
Such steps will help the North increase
its competitiveness. Appropriate steps
are being taken to improve these
aspects. In terms of infrastructure,
creating DMIC is a prime example.
Developing more such projects will
come as a boon for the growth of the
region.
INDUSTRIES TO WATCH OUT FORThe automobile manufacturing
industry and the ancillaries that supply
to the industry have the maximum
scope for expansion. In addition,
the construction industry, food &
pharmaceuticals industries and their
sub-sectors, are performing quite well
and have been registering high growth
rates. However, I must admit that
companies seeking to be successful in
any region need to initially conduct
their own market research and work
according to the situation.
INVESTMENT AND EXPANSION PLANSInnovation plays a crucial role in a
company’s growth. We, at Karcher,
continuously innovate to offer better
products to our customers. Innovation
has been the key to our growth. In the
North, we have offices at Panchkula
and Noida. But to serve our clients
better and extend our reach in the
process, we need to be present in all
the states of India.
arindam.ghosh@network18publishing.in
W
Karcher is the world’s largest manufacturer of cleaning machines and appliances. The German company has an Indian subsidiary based in Noida. In an exclusive interview to Arindam Ghosh, Anil Sethi, MD & Spokesman of Management, Karcher Cleaning Systems Pvt Ltd, speaks on the reasons for investing in North India and suggests a few measures to make the region a strong competitor to the Western and Southern regions of India. Excerpts…
Anil SethiMD & Spokesman of Management,
Karcher Cleaning Systems Pvt Ltd
Developing more projects on the lines of DMIC will come as a boon for the growth of the region
36 OPINIONS & MORE SEARCH - Supplement September 2012
ELHI-NCR: A LUCRATIVE PROPOSITION According to a recent
study, Delhi is one of
the most preferred cities
to live in and NCR is growing at
an exponential rate. This growth in
the industrial and corporate sectors
is making way for a huge influx of
people from all over the country,
thereby ensuring the availability of all
types of human resources. Delhi boasts
of a world-class international airport,
vast rail network augmented by state-
of-the-art Delhi Metro, efficient road
links, etc. Being the National Capital,
Delhi offers several benefits associated
with proximity to government offices.
MAJOR CHALLENGES Difficulties in accessing resources
like fuel & energy and lack of
skilled manpower & its ever-rising
cost are some of the challenges that
the region faces. The fast depleting
groundwater level is another major
concern. To redress these, I believe
that there is a need to enhance the
region’s competitiveness through
industrial restructuring and upgrading
technology programmes.
INITIATIVES TAKEN The increased focus of the government
to create better connectivity and
infrastructure has led to the birth
of DMIC. More such projects need
to see the light of day. Owing to its
proximity with New Delhi, there has
been a tremendous growth in the
infrastructure and economy of cities,
like Faridabad, Gurgaon, Ghaziabad
and Noida, in the Delhi-NCR stretch.
Besides, Haryana & Uttar Pradesh
have immensely benefitted from the
recent developments in sectors like
real estate, IT, ITeS, manufacturing
and service industries. About a decade
ago, these cities were like small villages
with no infrastructure and basic
facilities. But with the construction
of skyscrapers, roads & flyovers, the
landscape has completely transformed.
Modern residential societies have been
developed with luxury apartments.
Owing to the growing demand from
foreign and domestic companies, the
construction of commercial buildings
and offices is on the rise.
EXPANSION PLANSEverest Group started its career with
its first and parent unit in the heart
of Delhi (Mayapuri Industrial Area).
The company expanded its base by
establishing Unit 2 in Bahadurgarh
(NCR) in 1995 and Unit 3 in 2007.
The ever-increasing demand for
products, like roots blower, mechanical
vacuum boosters and dry screw vacuum
pumps, motivated us to further expand
with Unit 4, which will come up in
Bahadurgarh. It will be ready for
commercial production by April 2014.
We will also set up another unit (Unit
5), which will, most probably, be
located in or around Bahadurgarh.
SCOPE TO BETTER DELHI-NCR With globalisation hitting the landscape
of Delhi, the city needs more expansion
& better infrastructure. Adopting the
single-window concept for all approvals
will come as a huge boon. Further, work
on creating better human resources
through better education initiatives &
social welfare can improve the scope of
the region in doing business.
arindam.ghosh@network18publishing.com
D
Operating from Delhi-NCR, Everest Group started manufacturing Twin Lobe Rotary Air Blowers way back in 1980. Over the years, it expanded its
technological base by introducing a wide range of products for its customers. The company has now become a major manufacturer and exporter of blowers & vacuum systems. It has created a niche for itself in the country. In an exclusive interaction with Arindam Ghosh, Amit Kapur, Director, Everest Group, shares his thoughts on issues that can make Delhi-NCR a highly lucrative business
destination. Excerpts…
Amit Kapur
Director, Everest Group
There is a need to enhance the region’s competitiveness
38 OPINIONS & MORE SEARCH - Supplement September 2012
PROSPECTS OF DELHI–NCR As Delhi is the capital
city of the country, it is
well connected with all
the metros and major business hubs
in India through various modes of
transport, like rail, road and air. It also
ensures easier access to government
bodies and licencing authorities. The
government is also taking active steps
to improve the mobility in the region.
For instance, with the presence of
Delhi Metro, commuting in NCR
has improved greatly. Further, many
premier educational institutions are
located here that play a critical role in
making the workforce more productive
and efficient.
MAJOR CHALLENGES Labour problems are a major challenge
that a company may face here. Besides,
companies also need to ensure that
they get adequate supply of power and
water while setting up an industry.
The market is big here and there are
ample opportunities in store if you
offer quality products & services.
INITIATIVES TAKEN Infrastructure is one major area where
many activities are taking place in
Delhi-NCR. The government is
taking up various initiatives to develop
modern infrastructure. We are also
seeing an increasing role of public
private partnerships in such important
projects. DMIC is a prime example
of this. Such steps would encourage
investors to invest in Delhi-NCR. It
is critical to note that with developing
infrastructure, investment in fixed assets
is bound to appreciate, which will give
better returns in the years to come.
EXPANSION AND INVESTMENT PLANS As part of the steps to improve the
services to our customers, we have plans
to set up offices and service centres in
Gurgaon & Noida. This will further
allow us to make our client base stronger
and extend the reach of our business.
SCOPE FOR IMPROVEMENTWe believe that sectors like electronics,
telecom, IT and automotive have the
maximum scope in this region, as they
already have their roots here. Improving
the infrastructure by the concerned
government bodies, checking the rising
crime rate and better management of
labour demands & problems should
help in further brightening the scope
of doing business in Delhi-NCR.
arindam.ghosh@network18publishing.com
P
Sumitron Exports Pvt Ltd is a major company operating from Delhi-NCR. It offers advanced technology solutions from countries, like the US, Japan, the UK, Germany, Finland and South Korea, to various industrial segments like
electronics, electrical, telecom, automotive, medical and pharmaceuticals, in India. These solutions are very important for achieving high productivity and
effi ciency. During an exclusive interaction with Arindam Ghosh, SK Jain, CMD, Sumitron Exports Pvt Ltd, shares his views on the importance of being based in the North & Delhi-NCR and throws light on various issues that a company needs
to consider towards establishing its business activities in this part of the country. Excerpts...
SK JainCMD, Sumitron Exports Pvt Ltd
Infrastructure is one major area where a lot of activities are taking place in Delhi-NCR
SK Jain, CMD, Sumitron Group of Companies, started the company in 1986 after working for eight years in the industry. Born at Jind, Haryana, Jain was an excellent student all through his academic career. He did his B.Tech in Electronics in 1978 from Punjab Engineering College (PEC) and completed his MBA from Bangalore. Jain holds the memberships of many premier institutions like ISA, IEEE, IETE and ESD. A widely travelled personality, he has been to countries like the US, the UK, Germany, France, Japan, Singapore, Taiwan and China for business as well as training on hi-tech machines.
CREDENTIALS
40 OPINIONS & MORE SEARCH - Supplement September 2012
ELHI-NCR: AN INVESTMENT OPTIONAn organisation is built
with quality people and
this region boasts of
having one of the best talent pools in
the country. Besides, the world-class
infrastructure also plays an important
role. Delhi is the centre of the
Northern region and is surrounded by
places like Uttar Pradesh, Rajasthan,
Haryana and Punjab. This belt is
highly populated, which makes it easy
for us to approach the market.
Right after 1984, when the Punjab
crisis began, Delhi, which was not a
known name for business then, began
to be known as a trading region.
Delhi witnessed further growth as
major investments were made in the
manufacturing sector. With food
processing and consumer electronics/
durables industries taking interest
in the region, it began to experience
tremendous growth. The region provides
a good opportunity for the electronics
and other allied industries. Delhi and
its neighbouring regions are far ahead of
the other regions of the country when
it comes to the distribution and service
industry in India.
THE CHALLENGESThere are certain areas that need
attention. One such area is logistics.
Being land-locked, Delhi faces serious
connectivity issues as it does not have a
port. Also, Delhi does not have adequate
land resources. It is surrounded by
states like Rajasthan, Uttar Pradesh,
Haryana and Punjab. These regions
have never had industry-friendly
policies as there has always been a
conflict with the Central Government.
As a result, lack of good political will
has not allowed the manufacturing
industry to get established here.
Though the automobile industry
started its base here, it was not well
supported. Therefore, they migrated
from Haryana to other places and
now, Delhi–NCR has majorly become
a trading place.
WHAT CAN BE DONE?To address the drawbacks, the Centre
and the states should work together
and come up with a common policy.
India lacks a good manufacturing
strategy and when it comes to
manufacturing investments, it is not
only Delhi–NCR that is suffering. In
fact, in the last seven years, India did
not get any kind of large investment in
the manufacturing sector as domestic
players had shifted their plants. In short,
there is no real industrial investment,
which is a nation-wide problem. Delhi
has a geographical opportunity, but it
is only one of the requirements. There
are many more requirements like
people cost, labour, low energy cost,
port/road infrastructure and incentives.
These areas need to be looked into if
the manufacturing industry needs to
grow here.
LAVA’S FUTURE PLANSWe are investing in our design ability,
smart phone, tablet and other products.
We are also looking at manufacturing
some of the products, presently being
manufactured in Korea or Taiwan,
here in India. Having a manufacturing
facility here will not only create jobs,
but would also create value for the
consumers by local adoption and
customisation.
nisi.rath@network18publishing.com
D
LAVA International Ltd started its expedition in 2009 in Noida, and since then, there has been no looking back. The company was started keeping in mind the
common man in India who has a limited source of income and cannot afford expensive brands. It was an idea to revolutionise the mobile market in India with the clear mantra to entice each & every target group and provide products that would satisfy a customer’s aspirations and desires. In an exclusive interaction
with Nishi Rath, SN Rai, Co-founder and Director, Lava International Ltd. discusses the region’s growth prospects. Excerpts…
SN RaiCo-founder and Director,
Lava International Ltd
Delhi–NCR is far ahead when it comes to the distribution and service industry
42 PRODUCT UPDATE SEARCH - Supplement September 2012
This section gives information about products, equipment and services available in the market. If you know what you want. . .refer to Product Index on Page 50 to find it quickly
� EVEREST DRY VANE PUMPS
The 100% oil free, dry vane
pumps cater to the industrial
demand of a compact, quiet,
sturdy & reliable pump suitable for
delivering small volumes of 100% oil
free air at moderate pressures
essentially required for food,
medicine, printing, electroplating,
agitation, small STP & ETP plants
and other similar applications. Th ese pumps are precision machines
with simple construction & highly effi cient in operation. Th ey
require zero maintenance and are rated for continuous duty
operation. Th e vanes are made of prime quality impregnated
graphite with wear compensation mechanism to ensure high
effi ciency. Multi-vane design reduces pulsations giving les pulsating
fl ow elimination the need of additional accessories.
Everest Transmission
B-44, Mayapuri Industrial Area,
Phase-1, New Delhi-110064, India.
Tel: 91-11-45457777
Email: info@everestblowers.com
Web: www.everestblowers.com
� EVEREST VACUUM BOOSTERS
Dry Mechanical Vacuum
Booster Pumps will meet
the growing demand of the
vacuum industry. Th ey are used in
growing number of applications
where fast pump down times are
required and environment or energy usage concerns rule out any
alternative pump selection. Th e boosters enhance the performance
and pumping speeds of oil-sealed/ water-ring/ dry vacuum type of
mechanical pumps. Th ese boosters are highly energy effi cient and
provide greater pumping capacity at the least cost. Th e vacuum
boosters require low maintenance and are designed for continuous
duty operations. Th e production range covers capacities from 2,000
LPM to 1,00,000 LPM in single stage and any capacity in parallel
confi guration with working pressures better than 0.001 Torr.
Everest Transmission
(Vacuum Products Division)
B-44 Mayapuri Industrial Area, Phase-1,
New Delhi 110064, India.
Tel: 91-11-28116307, 28114944, Fax 91-11-28117469
Email: info@everestblowers.com
Web: www.everestblowers.com
43PRODUCT UPDATESEARCH - Supplement September 2012
� VERTICAL MACHINING CENTER
A 5-Axis Vertical Machining Center is used for machining
complicated parts with complex geometry and profi les.
DMG is one of the best machine tool builders and with
this machine, user can achieve repeatable tolerances in the range of
10 microns.
Crystal Precision Pvt. Ltd.
Corp address: Hotel Crystal Palace,
G2/47 Boundary Road, Meerut (UP) 250001
Works : Plot 772 Udyogpuram,
Behind J.P. Resort, Partapur, Meerut (UP) 250103
Cell: +91 - 7830003636
Email: ankit@crystalprecision.in
� PEDESTAL GRINDING MACHINE
“POWER MASTER” heavy
duty, double ended
pedestal grinding
machines are specially designed to
provide heavy metal removal in
engineering workshops, factories,
forging units, foundries etc. Each
pedestal grinder is complete with
electric motor, starter, two grinding
wheels, two MS wheel guards with exhaust outlets, and two
� UPS SYSTEM
Uniline has designed high
capacity high power UPS with
a single system capacity upto
300 kVA using the high frequency
IGBT rectifi er at rectifi er stage and high
frequency PWM IGBT technology at
the inverter stage. Conventional UPS
systems are designed with thyristor
based with 6 pulse/ 12 pulse
modulation. Th e maximum effi ciency of these UPS system is upto
92% and maximum power factor (pf) that can be achieved generally
adjustable tool rests. Th e motor is fi tted in the base of the pedestal
grinder and the machine is equipped with 2 speed V-Belt drive.
Arrangement is provided for increasing the spindle RPM when the
grinding wheel diameter is reduced. Th is helps to maintain the
correct surface foot per minute grinding speed.
Prem Brothers
B-57, Mayapuri Indl Area,
Phase-I, New Delhi-110064
Phone- 011-28117456/ 28117464/ 45595068
Tele Fax-011-28117456/ 64
Email: powrmstr@vsnl.com
Web: www.power-master-india.com
44 PRODUCT UPDATE SEARCH - Supplement September 2012
� INJECTION MOULDING MACHINE
The rubber injection moulding machine is
ideal for moulding precision parts with
accurate process control and high
productivity. Th e VE series is a vertical hydraulic
PLC-controlled 4-post rubber screw injection
moulding machine designed to maximise the
accuracy of the shot size. Th e VEC series is a 25 and
50 ton screw injection moulding machine designed
with a C-frame type clamp for unobstructed loading of inserts or
extrusions and ease of removing moulded parts.
J R D Rubber & Plastic Technology Pvt Ltd
New Delhi
� HYDRAULIC PUMPS
Pulsar hydraulic pumps are designed
to meet or exceed the original
equipment they replace. Th ese
pumps are manufactured with all new
materials and components and are tested
under rigorous quality control. Th e pumps
are made to ensure trouble-free service life.
Tight process control ensures consistency of product. Th ese are
made from special alloy extruded aluminium, which ensures long
service life. Th e pumps are 100% tested with endurance testing
carried in house periodically. Th ese are available in standard
mountings and provide effi cient pumping without air pockets. Th e
hydraulic pumps are assembled and tested in dustproof assembly
room, all gears hardened and shaved for best results.
Shriram Automotive Products Ltd
New Delhi
Tel: +91-011-40433111
Mob: 0810075011
Email: sapl@shriramautomotive.in
Web: www.shiromanihydraulics.com
is 0.8 in case of 6 pulse and 0.9 in case of 12 pulse. Th e total
harmonic distortion introduced by this kind of ups system is 30% in
case of 6 pulse and around 14% in case of 12 pulse.
Uniline Energy Systems Pvt Ltd
Uniline House - 198/23 Ramesh ,Market
East of Kailash - New Delhi - 110065
Tel: 011-46661111, Fax: 91-11-26481469
Mob: 9811288355
Email: rajesh@uniline.in/ uniline@uniline.in
Web: www.unilineindia.com
Mob: 09810121208
Email: jrdrp@vsnl.com
Web: www.jrdrubber.com
45PRODUCT UPDATESEARCH - Supplement September 2012
� HYDRAULIC CAR LIFT
These hydraulic car lift is designed as
per customers’ specifi cations and
developed with the help of premium
grade of raw materials using most
sophisticated technology. Th e range of car lifts
fi nds application in diff erent sectors, like
automobile, heavy engineering, etc. Some of
the salient features include multi-utility, highly durable, lifting
height up to desired height, etc. Th e hydraulic car lift has a haulage
height of up to 12 meters with a capacity of three tons, which
makes it suitable space saver as modular car parking equipment.
Servo Tech (India)
Delhi
Tel: +91-011-23259123
Mob: 09810287375
Email: servotechindia@hotmail.com
Web: www.shiromanihydraulics.com
� HIGH-VACUUM SUCTION UNIT
The Anand Hi-Vac Pluss high vacuum
high fl ow suction unit has a capacity of
0-700 mm Hg ±10 mm regulable, fl utter-
free vacuum control knob, 90 LPM. It is a double
piston type pump. Th e jar is of 2 x 2.5 ltr wide
47PRODUCT UPDATESEARCH - Supplement September 2012
� POWER AND CONTROL CABLES
These power and control cables
include aluminium/ copper
conductors, armoured/
unarmoured cables, etc. Th e cables consist
of carbon and hydrogen compounds, which
essentially contain low-density
polyethylene molecules in the form of long
fl exible chains. Cross-linked polyethylene
(XLPE) is a thermosetting compound. It
softens at the crytahne melting point of
polyethylene (85°C to 115°C) and assumes
an elastic rubber like consistency, a
property that it retains during further rise of temperature until it
becomes carbonised without melting at 250°C to 300°C.
Empire Cable Industries Pvt Ltd
Delhi
mouthed (polycarbonate) with changeover lever. Vacuum gauge is
bourden-type 6.25 cm dia 0-760 mm Hg calibration.
Anand Medicaids Pvt Ltd
New Delhi
Tel: 91-011-25225225
Email: sales@anandind.com
Web: www.anandind.com
49PRODUCT UPDATESEARCH - Supplement September 2012
Tel: 011-2386 7957/8832
Email: sales@empirecables.com
Website: www.empirecables.com
� PALLET RACKS
These racks are engineered for send bulk pelletised loads,
lumber and sheet goods, drum storage and similar send
bulk products, in various racking confi gurations that are
accessible and
continuous. All
pallet racks, heavy
duty pallet racks,
industrial plastic
pallets components
are standard or
customised to fi t customers’ requirements. Material used is steel.
Also off ered are heavy-duty pallet racks, heavy-duty plastic pallets,
high quality pallet racks and industrial plastic pallets that are used
in warehouses.
Pilco Storage Systems Pvt Ltd
New Delhi
Tel: +91-011-27110024,
Mob: 09810074596
Email: sales@pilcoonline.com
Web: www.pilcoonline.com
� AUTOMOBILE FUSES
The Maxi series automobile fuses are available in a higher range
of amperage rating of 20 A to 80 A in 32 V AC/DC. Th ese
fuses are larger in size as compared to other ATO and Mini
series automobile fuses. Colour code is provided in each fuse for easy
ampere identifi cation. Larger
fuses are used in automobile
circuits for protection of wiring
harness by replacing the fusible
wire or fusible link, which is
often a plain piece of small
wire. Th e ATO series fuses are
suitable for automobiles,
trucks; whereas the Mini series fuses are suitable for buses, cars, etc.
Sahil International
New Delhi
Tel: 011-2246 4894
Mob: 9899153952
Email: sahil2001@yahoo.com
Website: www.sahil-india.com
The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of
SEARCH
50 PRODUCT INDEX SEARCH - Supplement September 2012
FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover
Auto drain .............................................49Auto transformer ...................................46Automated guided vehicle..................FICAutomobile fuses ...................................49Automotive wire ....................................35Bbl brake motor ................................FGFBbl/kec flame proof motor ................FGFBrake motor ..........................................12Broaching machines ........................ 19, 31Cable gland .............................................5Cable trolley ..........................................45Centralized lubrication system ..............44Centrifugal fans .......................................6Chain hoist ............................................47Chain pulley block ................................12Cleaning equipment ..............................51Coaxial cable .........................................35Compensating cables .............................37Control cables .......................................37Control panel ........................................41Crab hoist..............................................12Crane .....................................................12Crane drives ..........................................47Crane duty motor..................................12Critical components ..............................33Dry vane pumps ....................................42Electric wire rope hoist ................... 12, 47Electrical product ....................................5Electronics product .................................5EOT crane ...................................... 12, 47Exhibition - engineering expo ..............48Feeder pillar...........................................41Filtration unit .......................................31Fire alarm cable .....................................35Flange mounting motor ....................FGFFlat cables .............................................37Flexible polyamide conduits material ...45Flexible wire ..........................................35Fluid connectors ....................................47Forklift truck .........................................10Frequency drives ....................................41Frl spares valve spares ...........................49Gantry crane .........................................12Gear box ................................................47Gear motor ...................................... 12, 47Goliath crane .........................................12HF & RF Co-axial cables ....................37
Hand roll marking machine ..................39Heat shrink tubing ..................................5Heat transfer equipments ........................6Helical gear box ....................................47High power ups system .........................25High pressure blowers .............................6High-vacuum suction unit ....................45Hoses .....................................................47Hydraulic car lift ...................................45Hydraulic cylinder ............... 19, 31, 43, 47Hydraulic equipments ...........................19Hydraulic forging hammer ....................42Hydraulic power packs .................... 19, 31Hydraulic presses ....................... 19, 31, 42Hydraulic pumps ...................................44Hydro pneumatic presses ......................39Industrial starter ....................................41Injection molding machine ...................44Instrumentation cables ..........................37Insulating material solutions ...................8Integrated solutions ...............................39Isolator ..................................................15Jib crane ................................................12KEC AC motor ................................FGFKEC DC motor ................................FGFKEC slip ring crane duty motor .......FGFLaser marking systems ..........................39Loader ...................................................10Lorry loader ..........................................10Master controllers .................................45Material handling equipment ...............12Mcb .......................................................15Metal cutting tool ................................ bicMolded cable .........................................35Motor ................................................FGFMotors & control ............................ 19, 31Multi wire cable trolley .........................45Multicore flexible cable .........................37Multicore round cable ...........................35Numerators. ...........................................39Pallet racks ............................................49Pbegl geared motor ...........................FGFPCM cables ...........................................37Pedestal grinding machine ....................43Pick & move crane................................10Pin marking systems .............................39Piston rod ..............................................47
Pneumatic products ...............................49Power and control cables.......................47Power distribution panel .......................41Pre engineered buildings .......................21Precision machining ..............................33Process gas blowers .................................6Puf panels/insulated rooms ...................21Pumps.......................................... 6, 19, 31Radio remote control ............................45Rccb .......................................................15Rectifier transformer .............................46Resistance box .......................................45Roll markers ..........................................39Roof & wall cladding ............................21Rotary dry vacuum ..................................6Scable ties ................................................5Screw presses .........................................42Sealing system .......................................47Shielded cable .......................................37Silence flow packages ..............................6Single phase transformer .......................46Solderless terminal ..................................5Solenoid valve .......................................49Solid carbide drill ...............................BICSolid carbide drill with IC .................BICSolid carbide mill ...............................BICSolid carbide reamer ..........................BICSolid carbide reamer with IC ............BICSolid carbide special drill ...................BICSolid carbide special mill ...................BICSolid carbide special reamer ...............BICSteel tube ...............................................47Switches ................................................15Switchgear applications ...........................8Telephone cables ...................................37Thermal imaging cameras ................... BCThruster brakes .....................................45Tower crane ...........................................10Transformer ...........................................46Truck blowers ..........................................6UPS system ...........................................43Vacuum boosters ...................................42Valve ......................................................49Vertical machining center .....................43Wheel assembly ....................................47Wire connector .......................................5Wire rope drum ....................................47
Products Pg No Products Pg No Products Pg No
Looking For A Specific Product?Searching and sourcing products were never so easy.
Just type SRCH (space) Product Name
and send it to 51818eg. SRCH Pump and send it to 51818
52 ADVERTISERS’ INDEX SEARCH - Supplement September 2012
Our consistent advertisersFIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover
Action Construction Equipments Ltd 10
T: +91-11-40549900
E: marketing@ace-cranes.com
W: www.ace-cranes.com
Applied Technosystems 39
T: +91-09911244140
E: appliedtechno@gmail.com
W: www.appliedtechnosystems.com
Bhagirath Heavy Transmission 47
T: +91-11-32222661
E: bht_india1998@yahoo.co.in
C&S Electric Ltd. 15
T: +91-11-30887520-29
W: www.cselectric.co.in
Cenlub Systems 44
T: +91-129-4113771
E: sales@cenlub.com
W: www.cenlub.com
Chetan Cabletronics (P) Ltd 35
T: +91-1493-513109
E: rakesh@chetancabletronics.com
W: www.chetancable.com
Crane Control Eqpts 45
T: +91-11-26388401
E: ccedelhi@vsnl.com
W: www.cranecontrolequipments.com
Crane-Bel Hydraulics 19
T: +91-120-3263281
E: office@crane-bel.com
W: www.crane-bel.com
Crane-Bel International Pvt Ltd 31
T: +91-120-3263281
E: office@crane-bel.com
W: www.crane-bel.com
Crystal Precision Pvt Ltd 33
T: +91-07830003636
E: ankit@crystalprecision.in
W: www.crystalprecision.in
To know more about the products featured in this magazine, fax us on 022-3003 4499 or tear and post to us the ‘Product Inquiry Card’ by following the 5 easy steps given there. Alternatively, you may also write to us at michael@infomedia18.in or call us on 022-3003 4684, and we will send your inquiries to the advertisers/companies directly to help you source better.
Advertisers’ Name & Contact Details Pg No Advertisers’ Name & Contact Details Pg No Advertisers’ Name & Contact Details Pg No
DSM India Pvt Ltd 8
T: +91-20-66430813
E: ojas.mehta@dsm.com
W: www.dsmep.com
Engineering Expo 48
T: +91-09819552270
E: engexpo@infomedia18.in
W: www.engg-expo.com
Flir Systems India Pvt Ltd BC
T: +91-11-4560 3555
E: manpreet.kaur@flir.com.hk
W: www.flir.com
G W Precision Tools India Pvt Ltd BIC
T: +91-80-40431252
E: info@gwindia.in
W: www.gwindia.in
Hi-Tech Robotic Systemz Ltd FIC
T: +91-124-4715100
E: marketing@hitechroboticsystemz.com
W: www.hitechroboticsystemz.com
Karcher Cleaning Systems Pvt Ltd 51
T: +91-120-4661800
E: info@karcher.in
W: www.karcher.in
Parashield Corporation 37
T: +91-11-22592741
E: parashieldcorporation@gmail.com
W: www.parashieldcorpn.com
Puri Associates 45
T: +91-11-26490186
E: puriassociates@airtelmail.in
Rightvision (India) Pvt. Ltd. 42
T: +91-120-4261026
E: lasco@rightvision.biz
W: www.rightvision.biz
S M Engineers 41
T: +91-11-43005355
E: sales@smengineers.org
W: www.smengineers.org
Sarvottam Electronics 46
T: +91-11-64583562
E: sunilkumarv044@gmail.com
Shree Prayag Air Controls (P) Ltd 49
T: +91-120-4733333
E: sales@spacpneumatic.com
W: www.spacpneumatic.com
Sumitron Exports Pvt Ltd. 5
T: +91-11-41410631
E: sumitron@vsnl.com
W: www.sumitron.com
Swam Pneumatics Pvt Ltd 6
T: +91-120-4696222
E: swamatic@airtelmail.com
W: www.swamatics.com
The Indian Electric Co FGF
T: +91-20-66865200
E: iecmktg@indianelectric.com
W: www.indianelectric.com
Trident Precision International 47
T: +91-11-41425326
E: trident.sales@tridenthydraulics.com
W: www.trident-precision.com
Trident Products Pvt Ltd 43
T: +91-124-4300626
E: trident.sales@tridenthydraulics.com
W: www.hydrauliccylinder.co.in
Uniline Energy Systems Pvt Ltd 25
T: +91-11-46661111
E: uniline@uniline.in
W: www.unilineindia.com
Vardhman Pre-Engineered Building
Systems (India) 21
T: +91-11-26011528
E: sunil@vardhmanpeb.com
W: www.vardhmanpeb.com
Venus Engineers 12
T: +91-11-32222661
E: enquiry@venusengineers.com
W: www.venusengineers.com
54
RNI No: 67827 /98 Postal Regd No G 2 / NMD / 81 / 2011 -13Posted at Mumbai PatrikaChannel Sorting Office- GPO, Mumbai 400 001
on 22nd & 23rd of Every Previous Month Date Of Publication: 18th of Every Month
RNI No: 67827 / 98 Licensed to Post without prepayment License No: WPP - 246Postal Regd No: KA / BG GPO / 2564 / 2011-13Posted at MBC, Bangalore GPO on 25th & 26th of Every Previous MonthDate of Publication: 18th of Every Month.
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