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Presentation on “Tamil Nadu Competitive advantages and Opportunities” Mr.C.V.SANKAR IAS Additional Chief Secretary Industries Government of Tamil Nadu by
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Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

May 28, 2020

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Page 1: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Presentation on

“Tamil Nadu – Competitive advantages and

Opportunities”

Mr.C.V.SANKAR IAS

Additional Chief Secretary – Industries

Government of Tamil Nadu

by

Page 2: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

State’s share in number of factories, higher than any

other state

State’s share in India’s industrial

workforce

2nd largest contributor to India’s GDP

Tamil Nadu – India’s economic powerhouse

Contribution to India’s industrial output

Contribution to India’s renewable energy capacity, higher than any other state

#1

India’s most urbanized state by geography and population

$€£¥

Ranks 3rd in terms of cumulative FDI inflows (USD 12.7 billion from 200o to 2014)

Number of India’s technical universities, higher than any other state

Page 3: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Tamil Nadu in Global economy

• Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of

India’s GDP). On PPP basis, GSDP:US $ 371 billion.

• Second largest economy among Indian states

• On Global scale, Tamil Nadu will be ranked 35th largest

economy on PPP basis). – bigger than Romania, Ukraine,

Vietnam, Bangladesh, New Zealand, Norway, Finland,

Denmark, Sri Lanka, Bulgaria, Uzbekistan, Afghanistan,

etc. In nominal terms, TN is ranked 57th.

• One of the fastest growing State economies with an average

growth rate of 9.75% in the last 9 years

• One of Top Three FDI destinations among Indian states

• Tamil Nadu Vision 2023 target to place Tamil Nadu in the

league of Upper Middle Income countries

Guidance Bureau

Page 4: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

0

2

4

6

8

10

12

14

16

7.29

4.74

Tamil Nadu India

India and Tamil Nadu: GDP Growth

rates at constant prices

Average growth rate between

2004-2013

India 7.60%

Tamil Nadu 9.50%

Source: Planning Commission, GoI

Page 5: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Tamil Nadu: Comparison with other Indian States

Second largest Economy and one of the fastest growing states in India

First in number of factories – 42,288

First in number of workers employed in factories sector – 2.23 million

First in annual turn-out of Engineering graduates and technicians

One of Top Three FDI destinations in India – More than 3000 Foreign

companies in Tamil Nadu - 523 Japanese companies in Tamil Nadu

Some of Fortune 500 companies in Chennai are: Ford, Delphi, Visteon,

Hyundai, Daimler, Nokia, DELL, Flextronics, Nissan, Toshiba, Yamaha,

Mitsubishi, Komatsu

More Cost effective than even China - according to several site

evaluation studies

Guidance Bureau

Page 6: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Product % share

of TN in

India

Automobiles

(cars only)

36%

Commercial

vehicles

35%

Auto parts 33%

Leather products 40%

Textiles 33%

Spinning capacity 47%

Powerlooms

capacity

20%

Software & ITES 11.6% Guidance Bureau

Page 7: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Infrastructure Profile of Tamil Nadu • Tamil Nadu – the most Urbanised state

• Power generating capacity: 20715 MW – second largest

• Communication: Largest Bandwidth and High Teledensity – highest

in India – 14.8 Tbps (3 Submarine cables: (SEA-ME-WE-4, i2i, and

TIC)

• 20 Industrial Parks, 76 Special Economic Zones – Third largest

• High Road & Rail network:

• Port logistics: 4 modern sea ports, 23 minor ports

• Well-developed social infrastructure: Health care, education,

Housing, etc

Density per 100 km2 of land area Tamil Nadu India

Road density 177 kms 148 kms

Rail density 32 kms 19.27 kms

Guidance Bureau

Page 8: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

CHENNAI

TUTICORIN

COLACHEL

ENNORE Ports of Tamil Nadu

CUDDALORE

NAGAPATTINAM

PAMBAN &

RAMESWARAM

MANAPPADU

THIRUKADAIYUR

KATTUPALLI

VALINOKKAM

Chennai the most efficient

port of India MUGAIYUR

Page 9: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

• Tamil Nadu – pioneer in promoting Technical education in Private

sector

• Annual Turn-out: More than 1.0 million Graduates (Engineering,

Arts & Science), Diploma holders and ITI workers

• Abundant availability of skilled manpower at competitive wage

costs

• Wage cost of a skilled worker: about US$ 150 to 180 per month –

Less than one US$ per hour

501 Polytechnics Annual turn-out:

188456 technicians

1552 Industrial training Institutes & schools:

Annual turn-out: 116551 workers / operators

572 engineering colleges - Annual turn-out

262,164 Engineering graduates

Skilled manpower availability in Tamil Nadu

Guidance Bureau

Page 10: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Tamil Nadu competitiveness: Six Sigma Advantage

Manufacturing Total Cost

competitiveness

Excellent Port Logistics Well-developed

Infrastructure: Power, roads,

communication, etc

Fastest growing State economy

Average Growth rate: about 10%

Mature Industrial base:

Leader in automobiles & parts,

Electronic hardware,

Textiles, IT, etc

Largest producer of skilled

Manpower In India

Guidance Bureau Guidance Bureau

Page 11: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Tamil Nadu – A Broad based Economy with presence of multiple sectors

Auto and Auto Components

Textiles Chemicals and Petrochemicals

Heavy Engineering

Electronics hardware

Pharma and Biotechnology

IT & ITeS Aerospace

Agro and Food Processing

Skill Development

Guidance Bureau

Page 12: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Automobile Sector in Tamil Nadu : Current Scenario

Investment Opportunities in Tamil Nadu •

Chennai – One of India’s largest auto hub .

21% of India’s automobile exports

Export Hub of Passenger Vehicles accounting for 70% of India’s

overall exports

20% of India’s total installed capacity of all Vehicles production

3.55

5.8 2.25

Existing Upcoming Total

Manufacturing Capacity in Tamil Nadu (in Million units)

• Tamil Nadu will have significant capacity addition by 2017-18 with players like Yamaha, Toyota , Mahindra & Mahindra establishing their plants in the Region.

• Tamil Nadu aims to reach 5 million Units production by 2020

Production Share

Domestic sales Share

Exports Share

15.80%

14.90%

21.20%

Tamil Nadu’s Share in Overall Indian Automobile Sector FY14

Automobile Sector

Tamil Nadu is to-date the only State to attract seven automobile giants-Ford, Hyundai, Mitsubishi, Daimler, Nissan, Renault and BMW. As on date, Chennai, the capital of Tamil Nadu has an installed

capacity to produce over 1.40 million cars and about 3,60,000 commercial vehicles each year.

Page 13: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Automobile Industry in

Tamil Nadu • Currently, Chennai is ranked as one of Top 10 Global auto

hubs

• Chennai is India’s largest auto hub – Currently, Chennai

has installed capacity to produce one car every 20

seconds (3 cars per minute) and one commercial vehicle

every 90 seconds

• Chennai is poised to emerge as World’s largest auto

cluster

• Chennai accounts for about 33% of India’s auto parts

production

• More than 700 Tier-I and Tier-II auto suppliers in Chennai

alone – Some of them prestigious Deming award winners

Guidance Bureau

Page 14: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft Automobile industry : Ecosystem in Tamil Nadu

Automobile OEM’s (4/3/2

Wheelers)

Raw material

Suppliers Electronics & Fuel

Injection

Sheet metal components

Suspension/Component Producers

Machine Components

Engine Components

manufacturer

Drive Line (Transmission,Axles,Brakes)

Credit & Financing

Logistics

Dealers & distributors

(300+)

Insurance Companies

Government: Central

Ministries (Heavy Industries,

Petroleum, Environment)

State Ministries (SME’S,

Industries)

Institutional Collaboration: (NATRiP, ARAI, SIAM, ACMA)

Academics & Education:

(PSG Engineering, Madurai, IIT

Madras, Guindy ITI, Trichy)

Guidance Bureau

Page 16: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Name of the company Product Installed

Capacity

Land

allotted

Ford (2 plants) Cars 2,50,000 360 acres

Hyundai (2 plants) Cars 7,00,000 537 acres

Nissan Cars 2,00,000

640 acres Renault Cars 2,00,000

BMW Cars 40,000 40 acres

HM-Mitsubishi Cars 40,000 120 acres

Daimler Commercial Vehicles 71,000 389 acres

Ashok Leyland Commercial Vehicles 1,00,000 260 acres

AL-Nissan Commercial Vehicles 1,90,000 400 acres

TAFE Tractors 60,000

TVS Motor Motorcycles 1.7 million

Royal Enfield Motorcycles 200,000

Yamaha Motorcycles 1.8 million 128 acres

Mahindra and Mahindra SUVs and Cars 1,50,000 450 acres

Caterpillar, Komatsu, Doosan *** Earthmoving machinery

Automobile Industry in Chennai

Guidance Bureau

Page 17: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Automobile Industry in Tamil Nadu

• Chennai – the largest auto cluster in India

• Installed annual capacity of Chennai:

Cars: 14,00,000 ( 1.40 million )

Commercial Vehicles: 361,000

Motocycles 3.7 million

SUV: 1,50,000

• Chennai is one of Top 10 centres in the world for automobile

manufacturing

• Chennai has the best eco system of for automobile manufacturing

Largest auto components cluster – 35% of India’s capacity

Largest pool of skilled manpower for automobile industry

Port Logistics from 4 ports

Advanced Testing, R&D and Homologation facilities

Attractive Fiscal incentives

Cost competitiveness

Guidance Bureau

Page 18: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Auto Components Industry in Tamil Nadu

Presence of robust domestic customer base (over 3 million vehicles rolled out of the state each year)

Locational advantages facilitating export potential to major global manufacturers

Incremental capacity addition of over 2 million vehicles necessitating additional investment in automobile components sector

• Over 80 automobile components manufacturers in Tamil Nadu, accounting for a turnover of over USD 1.3 billion as in 2013-14

• Industry highly concentrated in manufacturing of body and structural parts

• Over 15% growth of investments (both domestic and foreign) in the sector from 2004 to 2013

• State accounts for over 7% of total auto components output

35%

17%

13%

9%

13%

13%

Segment wise production of auto component s in Tamil Nadu

Body and structural

Engine & exhaust

Electronics and electrical

Interior

Suspension and braking

West, 201

North, 269

South, 139

East, 201

Automobile component manufacturers in TN - 83

Major manufacturers

Auto components sector

Page 19: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Opportunities in the Auto industry in Tamil Nadu

1

Passenger Vehicles, Passenger Cars, Utility

Vehicles, Multi-purpose vehicles

Two Wheelers: Mopeds, Scooters, Motorcycles

Three Wheelers: Passenger and Goods carriers

Commercial vehicles: Light, Medium and Heavy

commercial vehicles

Auto ancillaries/auto parts manufacturing

Auto parks/industrial infrastructure development

on PPP mode

Guidance Bureau

Page 20: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

271 approved IT parks Full fledged wide area

network and data centre 15 operational Special

Economic Zones in state

TIDEL Park, with a total area of 1.28 million sq. ft. is the largest in India

Over 1700 software units in the state

Land identified for setting up

International Institute of Information

Technology (IIIT)

0

2

4

6

8

10

12

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 (E)

IT/ITES exports – USD billion

7.1 9.3

State Government is establishing an IT Investment Region near Chennai covering an area of 1600 sq. km with a total investment of USD 1.7 billion. Land acquisition has been

initiated

IT & ITES sector in Tamil Nadu

Tamil Nadu is the second largest software exporter in the country

19

0

10000

20000

30000

40000

50000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Tamil Nadu Software exports Rs. crores

Guidance Bureau

Page 22: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Electronic Hardware Sector in Tamil Nadu

12

Tamil Nadu is the 3rd largest manufacturer of Electronic Hardware in India.

Electronic Component

s 25%

Computer and

peripheral equipment

41%

Communication

equipment 14%

Consumer Electronics

0.34%

others 20%

Share of major subsectors in total electronic hardware industrial output of Tamil Nadu (2011-

12) The total investment in the electronic hardware industry in Tamil Nadu is 710.95 million USD employing more than 40,000 workers in both organized and unorganized sectors.

329

931 740 752

573 726

1,067 1,207

178 270 191 413 19 2 12 10 0

200

400

600

800

1000

1200

1400

2008-09 2009-10 2010-11 2011-12

US

D M

illi

on

Production of major subsectors in the industry

Manufacture of Electronic Components

Manufacture of computers and peripheral equipment

Manufacture of communication equipment

Manufacture of consumer electronics

CAGR of electronic hardware industry in Tamil Nadu-30%

CAGR of electronic components and equipment -32%

CAGR of Computers and peripherals -28%

Guidance Bureau

Page 23: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Tamil Nadu has over 23 Electronic Hardware Technological Parks located in major IT centric Special Economic Zones(SEZs) of Sriperumbudur, Oragadam, and Mahindra World City.

13

46%

17%

14%

12%

3%

1.76%

1.54%

0.96%

0% 10% 20% 30% 40% 50%

Tamil nadu

Karnataka

Uttar Pradesh

Maharashtra

Kerala

Delhi

Gujarat

Andhra Pradesh

Share of Top States in Electronic Hardware Exports of India

Tamil Nadu stands 1st in terms of Electronic

exports in India

Electronics Hardware - Segmental Presence of Major Industrial houses in Tamil Nadu

Guidance Bureau

Page 24: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Opportunities in Electronic Hardware Sector in Tamil Nadu

14

Photovoltaic panels

Computer peripherals

Mobile handsets

Communication hardware and

networks Semiconductor

Medical electronics

Guidance Bureau

Page 25: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Tamil Nadu: an emerging chemical growth centre

• A diversified manufacturing base with about 2,500 chemical and petrochemicals factories, providing employment to over 120,000 people

• A USD 15 billion industry as in 2012-13, accounting for 7% of the total national output

• Strong presence in the export market in sub-segments such as Dyes, petrochemicals and Agrochemicals

6

2006-07 2007-08 2011-12

Basic chemicals 583 628 1315

Other chemicals and allied products

766 681 853

0

200

400

600

800

1000

1200

1400

State emerging as a major exporter of basic chemicals – (USD million)

CAGR - 18%

Chemical clusters Upcoming PCPIR

Refineries Ports with POL facilities

Key consuming industries – automobile, textiles, electronics, etc.

Chemicals and Petrochemical Sector

Guidance Bureau

Page 26: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Some of India’s leading chemical and petrochemical manufacturers have a base in Tamil Nadu

Refineries

(17.5 MMTPA)

CPCL Manali

NOCL Cuddalore

CPCL Narimanam

Glass manufacturing

(1 MMTPA)

Saint Gobain

Asahi

Harsha Group

Petrochemical complexes (1 MMTPA)

CPCL Manali

CPCL Narimanam

Chlor Alkali plants

(1MMTPA)

SPIC

DCM Shriram

Chemplast Sanmar

DCW

Soda Ash plants

(0.2 MMTPA)

Tuticorin Alkali

SIEL

Chemical Fertilizer plants

(1.94 MTPA)

MFL, Manali

SPIC, Tuticorin

TACL, Tuticorin

Container handling

(14 MMTPA)

Chennai

Tuticorin

Ennore

7

Page 27: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Opportunities in Chemicals and Petrochemicals in Tamil Nadu

8

High performance chemicals

Pigments and coating products

Petrochemicals Engineering

Polymers

Feedstock linkages Dyes and dyestuffs Specialty chemicals Agro chemicals

Paints and varnishes

New varieties of fibers & yarn

Nanotechnology based projects

Fine chemicals

Guidance Bureau

Page 28: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

0% 20% 40% 60% 80% 100%

Spindles

Rotors

Knitting machines

Looms

Composite weaving

Installed capacity as a % of total capacity in India (Non SSI units)

Tamil Nadu Rest of India

Textile Industry in Tamil Nadu: Facts and Figures

2

20% contribution to India’s total Export of Readymade Garments

58% of total textile Mills in India are present in Tamil Nadu (inclusive of SSI)

Textile Industry in Tamil Nadu accounts for ~17% of Total Invested Capital in all the industries

Constitutes 28% of total employment in India’s textile and Apparel sector

Textile and apparel sector together provide employment to 35% of population in the State

• Tamil Nadu houses more than 40% of total installed capacity of Spinning industry in India • Tiruppur(Coimbatore District) the biggest Knitting Cluster (90% exports of Knitwear from

India ) in the Country is located in Tamil Nadu • 35-40% contribution to total Yarn Production in India in last 5 years • There are 2614 Hand Processing Units (25% of total units in India) and 985 Power Processing

units (40% of total units in India) in Tamil Nadu

Advantage

Tamil Nadu

Textile Sector

Guidance Bureau

Page 29: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Share of Major Industries in terms of Total Output in Tamil Nadu (2011-12)

Top 3 State wise Industrial Output Contribution to the Textile sector in India 2011-12

2nd Largest

Contribution to the total Industrial Output of Tamil Nadu

1st In Apparel Industry and 2nd in

Textile Industry in terms of Total Industrial Output Contribution

Textile Sector in Tamil Nadu: Industrial Overview

3

19.66%

10.07%

9.68%

11.58%

7.70%

6.02%

5.59%

29.70%

Automobiles

Coke & refined Petroleum Products Basic Metals

Textiles & Apparels

Food Products

Machinery & equipment

Fabricated Metal Products Others

Source: Ministry of statistics & program Implementation

17.2%

27.0%

16.8% 17.1%

13.0% 11.2%

Textiles Wearing apparels

Guja

rat

Tam

il N

ad

u

Mahara

shtr

a

Tam

il N

ad

u

Hary

ana

Karn

ata

ka

Guidance Bureau

Page 30: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft Heavy Engineering Sector in Tamil Nadu

9

Chennai

Tiruvallur

Vellore

Tiruchirappalli

Kancheepuram

Coimbatore

Erode

Krishnagiri

Dharmapur

i Cuddalor

e

Madurai

Boilers and turbines

General purpose machinery

Generators, transformers, switchgears

Industrial machinery

Machine tools

Mining and constructi0n equipment

Electrical machinery

Tractors

Other transport equipment (Freight

containers, coaches)

Investment to the tune of 8582 crore has taken place in this sector over the past decade which is concentrated in the north-eastern part of the state 2nd in production of general purpose

machinery and special purpose machinery

Heavy electrical machinery sector is 5th in terms of contribution to India’s output.

6%

18% 11%

7%

18%

9%

20%

26%

29% 11%

8%

10% 13%

2%

3%

42%

28% 38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Heavy electrical machinery General purpose machinery Special purpose machinery

Contribution of the leading states to India's heavy engineering sector, %

Tamil Nadu Gujarat Maharashtra Karnataka Andhra Pradesh Rest of India

Heavy engineering sector output in Tamil Nadu has registered a healthy growth

Major investors: BHEL, Toshiba, BGR-Hitachi, Cethar Vessels, Caterpillar,

Komatsu, etc

Guidance Bureau

Page 31: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Major Companies in heavy engineering sector have chosen Tamil Nadu to set up manufacturing facilities

10

Boilers & turbines 29,500

81%

General purpose machinery

5,200 14%

Tractors 1,000

3%

Mining & construction equipment

800 2%

Mining & construction equipment

100 0%

Product wise heavy engineering sector upcoming projects in Tamil Nadu

• The largest upcoming segment of heavy engineering sector in Tamil Nadu is boilers and turbines (81%) followed by general purpose machinery (14%).

• Investment to the tune of Rs.3660 crore in pipeline in Kancheepuram and Chennai .

Heavy Engineering - Segmental Presence of Major Industrial houses in Tamil Nadu

Guidance Bureau

Page 32: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Opportunities in Heavy engineering in Tamil Nadu

11

• Heavy electrical equipments • Ship building • Energy equipment manufacturing • Anchor units

Heavy engineering industrial park in Tiruvallur district

• Heavy engineering industries • Precision tools • Logistics

Coimbatore – Salem industrial corridor - Manufacturing and Business investment region I&II

• Manufacturing Zines • Warehouses and Logistics • Industrial parks

Madurai –Thoothukudi industrial corridor – Manufacturing and Business investment regions (MBIR) I

Guidance Bureau

Page 33: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

23 October 2014

Draft

Pharmaceuticals and Biotechnology Sector in Tamil Nadu

Tamil Nadu is the fifth-largest pharmaceutical producing state in the country and accounts for 10% of the national production of pharmaceutical products in the country

15

0.58 0.54 0.53

1.00

0

0.2

0.4

0.6

0.8

1

1.2

2008-09 2009-10 2010-11 2011-12

US

D B

illi

on

Total pharmaceutical output of Tamil Nadu

The thrust areas of Tamil Nadu’s biotechnology industry include

healthcare, agriculture biotechnology, industrial enzymes bioinformatics,

contract-research, marine and environmental biotechnology.

government 35%

private indian

61%

private foreign 4%

% share of investments by the government and private sectors in the pharma industry in Tamil

Nadu

471.66 million USD

30.01 million USD 272.03 million USD

The state has received investment worth USD 453 million till 2013, and projects worth USD 228.31 million are at various stages of implementation.

Guidance Bureau

Page 34: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Renewable Energy Sector

S.

No.

Areas Annual

Average

Wind Speeds

1 Palghat Pass,

Coimbatore, Erode 18-22

2 Shencottah Pass,

Tirunelveli, Tuticorin 18-22

3 Aralvoimozhi Pass,

Kanyakumari 19-25

4 Kambam Pass ,

Dindigul district 19-25

Palghat Pass,

Coimbatore, Erode 18-22

The sale of wind power is through a fixed tariff regime where the regulatory commission fixes tariffs through cost plus framework

Wheeling charges for transmission of power using the network is at 5% of the energy wheeled

There is no limitation on the nature of the entity that invests in wind power segment. Any company/corporate body/association of individuals can invest in a wind power generation unit.

Ramanathapuram

Theni

Tirunelveli

Kanyakumari

Thoothukudi

Dindigul

Coimbatore

Wind Power in Tamil Nadu Wind power Passes in Tamil Nadu

The regulations allow for sale to third parties through open access.

Tamil Nadu installed capacity:7252.61 MW

Page 35: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

• The state has an outlay of USD 9170 million for solar energy sector alone.

Investment Outlay

• Mandatory 6% solar power consumption for all high Tension customers including SEZs, Industries which have committed access to 24x7 power, IT Parks, telecom Towers, Colleges and schools, buildings with a built up area of 20,000 MW or more

Solar Purchase Obligation

• As per the state industrial policy which includes • Investments made in power plants to be included for the purpose of structures packages • Refund of 50% of the VAT component on capital goods (if these are manufactures in

Tamil Nadu) exclusively for captive power generation • Electricity tax exemption for sale to utility & captive sales for 5 years

Tax Concessions

• A total capacity of 1500MW to promote development of solar capacity (of varied capacities ranging from 1MW to over 10MW). Parks with capacity of 50MW will be setup in 24 districts out of the 32 districts of the state.

Other features

Opportunities in Tamil Nadu for Renewable Energy

Solar Power in Tamil Nadu

Guidance Bureau

Page 36: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Development of wind-solar hybrid

installations and biomass projects

Development of solar PV manufacturing

capabilities

Offshore wind projects development

Development of large scale solar and wind

parks

Tidal and geothermal projects first at pilot

scale, and then at commercial scale

Opportunities in Tamil Nadu for Renewable Energy

Guidance Bureau

Page 37: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Agro & Food Processing sector in Tamil Nadu

1.09

2.66

0 0.5 1 1.5 2 2.5 3

2007-2008

2011-2012

USD billion

Exports of Agro Food Processing sector in Tamil Nadu have doubled

Agro-export zone Districts

Cut flowers Dharmapuri and Krishnagiri

Flowers Nilgiris

Mangoes Theni

Cashew Cuddalore

Tamil Nadu has four Agro-export zones

Cuddalore

Thoothukudi

Theni

Nilgiris

Dharmapuri

Krishnagiri

Dindigul

Existing agro export zones

Upcoming agro export zones

Upcoming food processing

industrial park

Map showing upcoming food parks and SEZs

Guidance Bureau

Page 38: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

New initiatives of Government of Tamil Nadu

• Vision Tamil Nadu 2023

• Tamil Nadu Infrastructure Development act, 2012

• Tamil Nadu Infrastructure Development Board

• Tamil Nadu Infrastructure Development Fund

• Creation of Land Bank: 53000 acres

• Promotion of New industrial parks

• Skill Development initiatives

• Single window facilitation

• New Industrial Policy 2014

• Automobile and Auto parts Policy 2014

• Biotechnology Policy 2014

• Global Investors Meet 2015 – 23rd – 24th May 2015

Guidance Bureau

Page 39: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

What Government of Tamil Nadu offers to Investors?

Land - in Industrial Parks

Structured Incentives package of support including fiscal

incentives for projects depending on investment size as per

Industrial Policy 2014

Quality and reliable infrastructure support including Power and

Water supply, roads, communication, waste disposal, etc

Single Window Facilitation & In-principle composite approval on

a fast-track mode within 30 days

Dedicated Project Facilitation Committee will be formed by

Government that will escort project.

4

4

4

4

4

Guidance Bureau

Page 40: Sectoral opportunities in Tamil NaduTamil Nadu in Global economy • Tamil Nadu’s GSDP in 2012-13: US $ 145 billion (7.8% of India’s GDP). On PPP basis, GSDP:US $ 371 billion.

Useful Contacts

Thiru C.V. Sankar, I.A.S.

Additional Chief Secretary to Government,

Industries Department,

Secretariat,

Chennai - 600 009. INDIA

Tel: 91-44-25671383

Fax: 91-44-25672727

E-mail: [email protected]

URL: http://www.tn.gov.in

Thiru M.Velmurugan,

Executive Vice Chairman,

Tamil Nadu Industrial Guidance & Export

Promotion Bureau, (Single window office)

19-A, Rukmani Lakshmipathy Salai,

Egmore, Chennai - 600008. INDIA

Tel: 91-44-28553118

Fax: 91-44-28588364

E-mail: [email protected]

URL: http://www.investingintamilnadu.com

Guidance Bureau