Hon ble Chief Minister of Tamil Nadu welcomes NRI Investors to Tamil Nadu – The Land of Immense Potential.

Hon’ ble Chief Minister of Tamil Naduwelcomes NRI Investors to

Tamil Nadu – The Land of Immense Potential

Presentation on Tamil Nadu – Competitive

advantages and Investment Opportunities

by

GUIDANCE BUREAUGovernment of Tamil Nadu

Presentation Structure

• Fundamentals of Tamil Nadu• Current Economic scenario• Competitive advantage analysis• High Growth sectors –

opportunities• Information technology• Biotechnology

• New Initiatives• Govt. support to Investors• Current investment-Flows• Why Tamil Nadu?

FUNDAMENTALS OF TAMIL NADU 3rd largest State Domestic Product (SDP) among the

states in India*

Tamil Nadu – one of few Indian states with > 6.0%

growth rate of SDP

3rd in Human Resource Development index as per

Human Development Report of Govt. of India, 2001

Well-developed manufacturing sector and highest

value addition in factory sector among the major

southern states

High export intensity : 1/3 of industrial output valued

@ about us $ 6.5 billion* Estimated

Industry Profile of Tamil NaduTraditional Strengths Tamil Nadu’s

Share in India Cars 21% Heavy Commercial Vehicles 33% Auto Components 35% Railway Coaches 49% Cotton Yarn 32% Leather Tanning Capacity 70% Software 14 % Power Driven Pumps 50%

With Ford, Hyundai Motors & HM-Mitsubishi carProjects, Chennai emerges as Detroit of India.

Chennai produces “bicycles to battle tanks” – ‘B to B’

INFRASTRUCTURE DEVELOPMENT INDEX TAMIL NADU VS. OTHER STATES

Source: CMIE Profile of Indian states

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COMPETITIVE ADVANTAGES OF TAMILNADU

High Literacy rate @ 73.5%

The state has the largest intake capacity in India

for Engineering and Polytechnic education - Annual

intake capacity in engineering colleges is 75, 125

and 45,334 in polytechnics

Computer education in schools : about 100,000

students are trained every year. This project has

become the “National Model”

COMPETITIVE ADVANTAGES OF TAMILNADU

International digital leased lines of 64 kbps and

above

Several large private ISPs based at Chennai

Chennai – the landing point for 2 submarine

cables : 13 + tbps – Bharti has commissioned its

submarine cable with a capacity of 8.4 tbps -

the largest bandwidth capacity in the world

Bandwidth is no more a barrier – statewide OFC

backbones under construction by 6 companies.

Power• Current installed capacity: 7905 MW

• Power availability in Tamil Nadu better than other states

• No power cuts or outages

• Uninterrupted quality Power supply to industries

• Tariff rate in Tamil Nadu cheaper than most other states

• Additional generating capacity:1900 MW during 2002-07

• New Projects to be completed in 2002-03: 521 MW

Chennai

TuticorinColachel

Ennore**

* *

No. of Major Ports 3 : Chennai, Tuticorin & Ennore

Chennai Port – the second largest in India

Ennore - first corporate port

Combined cargo handling capacity of 3 major Ports in Tamil Nadu : 73 million MT – about 24% shareTamil Nadu has 14 minor ports – Of this, 7 are captive ports

Ports of Tamil Nadu

Port Development

• Development of Phase II & III and LNG terminal at Ennore port

• Upgradation of port facilities at Cuddalore & Nagapattinam

• Tran-shipment hub Port at Colachel on G-to-G basis

Best Indian cities – Overall RankingCity Overall Rank

Mumbai (Bombay) 1

Chennai (Madras) 2

Chandigarh 3Bangalore 3Mysore 5

Pune 5

Hyderabad 7

Coimbatore 8Source : BT Gallup Survey of Best Cities to do Business – Dec. 2001

Growth of Exports from Tamil Nadu

Rs. in Tenmillions

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30636

23937

2138719232

1780216142

Specific Investment opportunities

• Software & Electronics

• Hi-Tech Agro / food Processing

• Petrochemicals

• Bio-Technology & Pharma

• Roads & minor Port development

• Automotive Projects

• Development of Industrial Parks

• Tourism and Satellite Township Projects

Information Technology industry in Tamil Nadu

Competitive advantages of Chennai• Highest skilled manpower density and largest turnout of Software

engineers• Eminent Institutions like: IIT, Anna University, etc.• Chennai – rated second best in India to do Business• Property prices cheaper than other metropolises• Good city Infrastructure:

• Reputed schools - American International School• Chennai – health care capital city of India with super-specialty world-

class health care facilities• Good Public transportation facilities• Modern apartments along the beach

• International Airport with about 205 direct flights every week connecting 15 countries in Europe, South East Asia

• Excellent communication facilities: Bandwidth is no barrier• Several MNCs including Ford, Cognizant Technologies, Citi Bank,

Stanchart, ABN Amro Bank and institutions like World Bank found Chennai the best location in their Site selection studies

• Chennai rated best location in site selection studies of:» World Bank, Washington» ABN Amro Bank» Ford Business Solutions, USA» Cognizant Technologies» Alcatel» Computer Associates» Stanchart Bank and many more

Hence, all the above have made investments in Chennai

• Chennai rated as the most attractive location by NASSCOM study• Noble & Hewitt rated Chennai the Best in terms of “ growth vision

and receptivity to investment”• Chennai has one of the largest English speaking population – has

multilingual training facilities in languages such as German, French, Japanese, etc.

Competitive advantages of Chennai

Our Guests……

AND MORE………

> 45,000 professionals

employed

161 5223(Rs. Crores)

Software Exports

1996-97 2001-02

PLUS

Hardware Exports

Rs. 482 CroresIn 2001-02

98-99 99-00 00-01 01-02

Growth in no. of IT companies

100

500

SELECT INDICATORS…

166

866

World class facilities – the most modern IT park of India

Built-up area 1.28 million sq.feet – Largest in India

Unlimited bandwidth and reliable connectivity

High quality supporting infrastructure

TIDEL achieved 100% occupancy in 4 months

Enthused by response, Second Information Technology Park is in the offing and feasibility & market study underway to identify sites, define infrastructure specifications.

TIDEL PARKThe millennium park

Software exports from Tamil Nadu

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Rs. in Crores

164.40 393.00

1246.00

1914.00

3116.00

5223.00

Software Export of Tamil NaduSl.No Area of Expertise 2001-02

No.of units* Export value

Rs. in crores

1 Application Software 257 2259.41

2 On Site Consultancy Services

36 1716.71

3 System Software 33 702.02

4 IT enabled services 114 340.01

5 Web Applications 60 184.93

6 Product / Packages 15 16.84

Note : A unit may have expertise in more than one area of business Source : Software Technology Parks of India, Chennai

Some Trends in Information Technology

% of Tamil Nadu in Indian Software export

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14

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1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002*

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Biotechnology industry in Tamil Nadu

Tamil Nadu – Bio Resource endowments• With 5,000 species of flowering plants, 22,500 sq km of

forest cover and a coastline of 1,000 km, Tamil Nadu is exceptionally rich in biodiversity

• Endowed with about 30% of the total biodiversity resources of India

• Extensive coral reef systems across its southern coastline is compared tropical rainforests in their wealth of biodiversity

• Large pool of experts in various areas of BiotechnologyTamil Nadu Biotechnology Policy

• Tamil Nadu - the investor-friendly Biotechnology policy• Establishment of Tamil Nadu Bio-technology Board under the

Chairmanship Dr. M.S. Swaminathan• Single Window facilitation for biotechnology enterprises• Creation of quarantine facilities & sanitary / phytosanitary measures

as per WTO agreement• Creation of “Emerging Technology Venture fund”• Biotech given industry status• TIDCO plans hosting of facilities for different streams of Biotechnology

Marine Biotechnology Park

Medicinal plants Biotech ParkMadurai

Women’s Biotech, Kelambakkam

Biotech Incubator Park, Chennai

Bioinformatics & Genomics centre Chennai

Bio-Valleys inTamil Nadu

Bio-Valleys inTamil Nadu

TICEL Bio Park : TIDCO-Cornell Partnership

a) The Biotech Park will have two major facilities viz. (a) Bio-Resource Centre (b) Common tenancy area

b) Bio-Resource Centre- Bio resource center will incorporate state -of- art comprehensive facilities

c) Incubator Centre Incubator center will house complete range of equipment for up-stream and down-stream process development in several segments of life sciences .

d) Green House and germ plasm centre e) Land area at Siruseri for development of manufacturing

facilities in future

Marine Biotechnology Park

The first of its kind in India

• Location : 20 Kms from Chennaion East Coast Road

• Land : 100 Acres• Completion : End 2003• Project Cost : Rs.50 Crores• Investment by individual units: Rs.250 Crores

Automobile industry in Tamil Nadu

OEMsHM - CARS/MUVSTELCO - TRUCKS

OEMs.ASHOK LEYLAND - TRUCKSFORD - CARSHYUNDAI - CARSMITSUBISHI - CARSROYAL ENFIELD - MCYCLESTAFE - TRACTORSTATR-UDYOG - HCVSTVS-SUZUKI - MCYCLESCATERPILLAR - Earth Moving equipmentCREAVES - TractorsHVF - Battle TanksICF - Railway coachesTI Cycles - Cycles

NORTH

EAST

WEST

Tamil Nadu

N

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INDIAN AUTOMOTIVE MAP

SOME KEY PLAYERS OEMs. DAEWOO - CARSEICHER - TRACTORSESCORTS - TRACTORS/MCYCLESHERO HONDA - MCYCLESHMT - TRACTORSHONDA - CARSITL - TRACTORSLML - SCOOTERSMARUTI - CARS/MUVSNEW HOLLAND - TRACTORSPTL - TRACTORSSWARAJ MAZDA - LCVS

NR 160 VENDORS

OEMsBAJAJ AUTO - SCOOTERS/MCYCLES/ 3-WHEELERSBAJAJ TEMPO - MUVS/TRACTORS/LCVS/3- WHEELERSEICHER - LCVS/TRACTORSFIAT - CARSGM - CARSGREAVES - 3 WHEELERSGTL - TRACTORSKINETIC - SCOOTERS/MCYCLESM & M - TRACTORS/MUVSMERCEDES BENZ. - CARSSKODA - CARS (AWAITED)TELCO - TRUCKS/CARS/MUVS

WR

120 VENDORS

.

Key Players 107

Investment about Rs.36000 million ($ 800 million)

Output US $ 1.2 billion

Exports US $ 140 million Employment about 45,000 persons (Direct)

CHENNAI - AUTO COMPONENT INDUSTRYVITAL STATISTICS

CHENNAI COMPONENT WISE PRODUCTION CAPACITY SHARE IN INDIA (%)

Visteon – the largest component manufacturer of India located in Chennai

Above 50% share

(19 items)

Inlet and exhaust valves, valve guides, valve tappets, Fuel pumps (petrol), oil pump assembly, thermostat, Timing chair, water pump assembly, starter Motors, Alternators, camshafts, oil seals, Brake linings, wiper motors, Air brake assembly, Engines.

30% - 50%

(10 items)

Fuel pump Nozzle holders, voltage regulations, Flywheel Magnetos, Steering gears (mechanical & power), wheel Rims, Electric horns, Dashboard instruments

10% - 30%

(17 items)

Fuel pump Nozzle & elements, delivery valves, crankshafts, bi-metal bearings, Fuel inj. Pumps, Radiators, Clutch plates, clutch assembly, shock absorbers, Automotive tyres, automotive seats.

Less than 10% 7 items

GM USA FORD USA DAIMLER CHRYSLER USA BMW GERMANY VOLVO SWEDEN NISSAN JAPAN, UK PIAGGIO ITALY NEW HOLLAND ITALY

Exports from Tamil Nadu

KEY OEM CUSTOMERS

KEY ADVANTAGES

Highly-skilled and educated workforce and primarily English-speaking Managers

Quality conscious manufacturers

Low-cost manufacturing base

Partnering linkages with global supply chain

India produces 80% of auto components and exports components world wide

ADVANTAGE TAMIL NADU

Excellent Manufacturing Base :

=> High Machine Tool Capability=> Improving Tooling Capability=> Extremely Capable Component Industry=> Most Raw Material Locally Produced

ADVANTAGE TAMIL NADU

Facts About Tamil Nadu --Facts About Tamil Nadu -- Auto Component Industry Auto Component Industry Sundaram Clayton - Deming Prize Winner in the Indian Auto Component Industry, out of the 5 in the world outside Japan.

GM Supplier of The Year Award Bagged 5 Consecutive Times By Sundaram

Fastners

Ford (Chennai Plant) Exports CKDs / SKDs of Ikon From India With More Than 80% Local Content

Hyundai (Chennai Plant) exports assembled cars and Components

Facts About ChennaiFacts About Chennai Has a share of 35% installed capacity in components manufacturing in India Many component suppliers have ISO 9000 and OE suppliers

The Largest Number Of ISO/QS Certified Companies :

More than 50% ISO Certified

More than 26% QS CertifiedVISTEON have started exporting components made in India to their various other plants around the world- Investing further to make India as a manufacturing base.

Fastest growing market for Two wheelers Award winners like :

Deming Prize Winners in the Indian Auto Component industry, out of the 5 in the world outside JapanGM Supplier of The Year Award Bagged 5 Consecutive Times By an Indian Company

About assistance from Tamil Nadu Industrial

Development Corporation (TIDCO)

TIDCO

A Govt. of Tamil Nadu Enterprise formed in 1965

A company with an Authorised share capital of Rs.1250 million

Assistance by the state government Equity Rs. 942 million Loan Rs. 373 million

TIDCO Mainly promotes industrial development in the state

through Joint Ventures with private sector participation in three categories

Joint Sector with - 26% of Equity

Associate Sector with - 2 to 11% of Equity

Escort Sector with - 1% of Equity

A Non-Banking Financial Company registered with Reserve Bank of India

Has mobilised deposits from public up to Rs. 2,371 million

TIDCO’S PARTICIPATION COVERS A WIDE SPECTRUM OF PROJECTS

TIDCO has promoted several industrial ventures in allied fields such as :CHEMICALS,ENGINEERING,LEATHER, TEXTILES, AGRI-BUSINESS, AUTOMOBILE, PHARMACEUTICALS, FOOD PROCESSING AND INFRASTRUCTURE

NOTABLE PROJECTS COMPLETED

FERTILIZERS AND CHEMICALS - SPIC - FERTILIZERS TPL - LINEAR ALKYL BENZENE TEL - NITROGLYCERINE BASED COMMERCIAL EXPLOSIVES & ACCESSORIES CORE SECTOR - TANCEM - CEMENT SISCOL - STEEL PLANT & ROLLING MILL

NOTABLE PROJECTS COMPLETED (contd..)FOOD-PROCESSING & PHARMACEUTICALS

SKM - EGG POWDER MALLADI - EPHEDRINE HYDROCLORIDE R.R. MEDI PHARMA - INTRAVENOUS FLUID TAMILNADU DADHA - PHARMACEUTICALS

( NOW SUN PHARMA)

ELECTRONICS, IT & COMMUNICATIONS

TITAN INDUSTRIES - WATCHES & JEWELLERY

TTL - TELECOM CABLES & ACCESSORIES VENTURE LIGHTING - METAL HALIDE LAMP

DYNAVISION - CONSUMER ELECTRONICS

NOTABLE PROJECTS COMPLETED (Contd.)

INFRASTRUCTURETIDEL PARK - IT PARK TNRDC - DEVELOPMENT & MAINT. OF ROADS & HIGHWAYS CHENNAI TRADE - CONFERENCE,CENTRE EXHIBITION FACILITIESMAHINDRA INDL. - ECO FRIENDLY PARK INDUSTRIAL CITY OTHERSCHESLIND TEXTILES - TEXTILES RAMBAL - AUTO COMPONENTSDCM HYUNDAI - MARINE FREIGHT CONTAINERS

PROJECTS UNDER IMPLEMENTATION

TICEL BIO PARK • WITH TECHNICAL COLLABORATION FROM

CORNELL UNIVERSITY, USA, AND CAPITAL OUTLAY @ RS.630 MILLION

HI-TECH INDUSTRIAL PARK (SEZ)• A JOINT VENTURE OF TIDCO & INFAC GROUP,

USA WITH A CAPITAL OUTLAY OF RS.7000 MILLION AT NANGUNERI, THIRUNELVELI DISTRICT

PROJECTS UNDER IMPLEMENTATION CONTD...

TANFLORA INFRASTRUCTURE PARK• A FLORICULTURE INFRASTRUCTURE PARK WITH EXPORT THRUST

AT A CAPITAL OUTLAY OF RS.250 MILLION

• BEING DEVELOPED ON THE LINES OF AGREXCO OF ISRAEL, IN DHARMAPURI DISTRICT

NAGARJUNA OIL CORPORATION • A PETROLEUM REFINERY WITH 6 MILLION TONNES PER YEAR

CRUDE THROUGHPUT CAPACITY WITH A CAPITAL OUTLAY OF RS.34,800 MILLION

• PROMOTED AS A JOINT VENTURE OF TIDCO & NAGARJUNA GROUP

PROJECTS IN CONCEPT STAGE

SECOND INFORMATION TECHNOLOGY PARK

MARINE BIOTECHNOLOGY PARK

RUBBER INDUSTRIES PARK

XECHEM INC., (ANTI CANCER DRUGS)

WINERY PROJECT

About Industrial Parks in Tamil Nadu

SIPCOT Industrial Parks Irungattukottai Industrial Park Sriperumbudur Industrial Park Gummidipoondi Industrial Park EPIP at Gummidipoondi Cuddalore Industrial Park I & II Pudukottai Industrial Complex Hosur Industrial Complex - I & II Manamadurai Industrial Complex Cheyyar Industrial Park Tuticorin Industrial Park Ranipet Industrial Park Nilakottai Agro Park Gangaikondan Growth centre Perundurai Industrial Park Bargur Industrial park Oragadam Industrial park Siruseri IT Park

TIDCO Industrial Parks Ennore Petrochem Park

Hi-Tech industrial Park & SEZ,

TANFLORA – Floriculture park

TIDCO – Mahindra Industrial

Park

Rubber Park

Garments Park

TIDEL Park

Bio-Tech park, Bio-Valleys

Bio-Informatics Park

SIPCOT INFORMATION TECHNOLOGY PARK - SIRUSERI

• Exclusive for IT industry

• Spread over 1000 acres

• Planned as a self contained city

• Preferred Destination of IT Investments

SIPCOT IT PARK- SIRUSERI

• LOCATION : 24 KM S FROM CHENNAI ON OLD MAHABALIPURAM ROAD

• AIRPORT : INTERNATIONAL AIR PORT AT 20 KMS FROM SIRUSERI

• SEAPORT : ALL WEATHER PORT AT 30 KM AT CHENNAI

• RAILWAY STATION : 30 KMS AT CHENNAI CONNECTED

THROUGH OUT THE COUNTRY

Irungattukkottai Industrial ParkLocation Sriperumpudur Taluk,

Kancheepuram Dist. 35 Km. From Chennai

Area & Cost 1843 Acres & Rs.12 lakhs per acre

Connectivity Well connected by National Highway to Chennai city. Chennai Domestic / International Airport, Seaport & Railway station located at a distance of 35 Km from the park

Water supply 5 Millions Gallons per day through pipeline

Power supply Separate substation provided for uninterrupted power supply

Telephone Separate Telephone Exchange is provided. Connections are available on demand

Major Units located

Hyundai Motors, Matsushita, Lumax Samlip, Pos Hyundai, Iljin, JBM Sangwoo & Mando Brake Systems

100 – 200 acres can be allotted immediately in this Industrial Park

Credentials

Mahindra & Mahindra Ltd.

Promoters

Tamil Nadu Industrial DevelopmentCorporation Ltd.

Infrastructure Leasing & Financial Service Ltd.

Design : JTC International, Singapore

Landscape : Belt Collins, Singapore

FDI - State-wise Position (August 2002)FDI - State-wise Position (August 2002)

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Tamil Nadu – the Third largest recipient of FDISource: SIA, Govt. of India

What Govt. of Tamil Nadu offers?

• Land in Industrial Parks

• Single Window facility to get all approvals

• Good Infrastructure support & Power supply

• Attractive Incentives Package

Single window facilitation• Govt. of Tamil Nadu offers an effective Single window

facility to take care of all clearances & approvals as well as infrastructure support like power, water, land allotment, etc.

• Common application form for all approvals and infrastructure support

• In-principle clearance within 2 weeks to enable the company to go ahead with implementation

• Guidance Bureau designated as Single Window documentation centre by Govt. of Tamil Nadu

Contact addressesMr.K.Skandan IASSecretary to GovernmentIndustries DepartmentGovt. of Tamil NaduFort St.George Chennai 600 009Phone: (044) – 25671383Fax: (044) - 25670822

Mr.Arun Ramanathan IASChairman & Managing DirectorT I D C O19-A, Rukmani Lakshmipathy salai, EgmoreChennai-600 008Phone: (044) – 2855 3710Fax: (044) – 28553729

Mr.T.N.Ramanathan IASDirectorGUIDANCE BUREAU19-A, Rukmani Lakshmipathy salai, EgmoreChennai-600 008Phone: (044) – 2855 3118Fax: (044) - 28588364

Mr.M.Velmurugan IESAdditional DirectorGUIDANCE BUREAU19-A, Rukmani Lakshmipathy salai, EgmoreChennai-600 008Phone: (044) – 2858 8364Fax: (044) - 28588364E-mail: [email protected]

Thank you

Please visit our websites:

www.tidco.comwww.sipcot.comwww.elcot.comwww.tn.gov.in

www.itparkchennai.com