TAMIL NADU - India Brand Equity Foundation, IBEF, Business

TAMIL NADUNovember 2010

2

Investment climate of a state

Resources/Inputs

Incentives to industryPhysical and social

infrastructure

Regulatory framework

• Skilled and cost-effective labour

• Labour market flexibility

• Labour relations

• Availability of raw materials and natural

resources

• Tax incentives and exemptions

• Investment subsidies and other incentives

• Availability of finance at cost-effective terms

• Incentives for foreign direct investment (FDI)

• Profitability of the industry

• Procedures for entry and exit of firms

• Industrial regulation, labour regulation, other

government regulations

• Certainty about rules and regulations

• Security, law and order situation

• Condition of physical infrastructure such as

power, water, roads, etc.

• Information infrastructure such as telecom, IT,

etc.

• Social infrastructure such as educational and

medical facilities

Investment climate of a state is determined by a mix of factors

TAMIL NADU November 2010

3

Contents

Advantage Tamil Nadu

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Tamil Nadu


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Tamil Nadu – State profile

• Tamil Nadu covers an area of 130,058 sq km. It is the eleventh-largest state and the seventh-most-populous state in India; it has 32 districts.

• Tamil Nadu is among the most industrialised states in the country. It also has a rich tradition of literature, music and dance.

• The climate ranges from dry sub-humid to semi-arid. Important rivers flowing through the state include Palar, Cheyyar, Ponnaiyar, Kaveri, Bhavani, Vaigai and Tamaraparani.

• Chennai is the capital city. Coimbatore, Madurai, Thiruchirappalli, Salem, Tirunelveli and Erode are some of the other key cities in the state.

• Tamil is the state language; English is also commonly used for communication and as a medium of education.

Source: Maps of India

Tamil Nadu November 2010

ADVANTAGE TAMIL NADU

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Highly industrialised with greater level of urbanisation

Among the states with larger FDI inflows

Tamil Nadu has attracted several industrial sectors that are a part

of India‟s new economy sectors. In the last three years, these

industries have helped the state achieve over 13 per cent of

GSDP growth. The Census 2001 highlighted that Tamil Nadu has

the highest level of urbanisation rate (43.86 per cent) among all

states.

The state attracted cumulative FDI inflows of US$ 5.7 billion

between April 2000 and May 2010 and is amongst the highest FDI

attracting states. FDI inflows have helped achieve greater

technological advancement and more exportable products.

Rich labour pool and low cost of manpower

The state comprises of well-qualified, skilled, disciplined,

productivity-oriented and English-speaking workforce. The

standard of education and educational institutions is highly rated in

the country. Average wages are also lower than similar workforce

in the developed countries.

Advantage Tamil Nadu … (1/2)




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Facilitating infrastructure

Infrastructure development of Chennai have been rated better

than other big cities by independent site evaluation studies of

organisations such as Ford, the World Bank, BMW, Foxconn,

Standard Chartered, Nokia and Flextronics.

Good living standards and low crime rate

The state has largely peaceful living conditions and has low crime

rate, making it an attractive destination for industries. There are

several places for recreation and tourism.

Political environment

The state has a stable political environment with a single-party

government. Successive state governments have been committed

towards creating a progressive business environment.

Advantage Tamil Nadu … (2/2)




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Tamil Nadu in figures … (1/2)

Parameter Tamil Nadu All-states Source

Economy

GSDP as a percentage of all states‟ GSDP 7.7 100.0 CMIE, as of 2007-08, current prices

Average GSDP growth rate (%)* 11.0 11.8 CMIE, 2000-01 to 2007-08, current prices

Per capita GSDP (US$) 1,150.9 992.5 CMIE, as of 2007-08, current prices

Physical infrastructure

Installed power capacity (MW) 14,410.0 159,398.5 Central Electricity Authority, as of March 2010

GSM cellular subscribers (No) 36,117,977 456,586,162Cellular Operators Association of India, as of June

2010

Broadband subscribers (No) 644,912 4,981,976 As of October 2008

National highway length (km) 4,832 70,548Ministry of Road Transport & Highways, Annual

Report 2008-09

Major and minor ports (No) 3 + 15 12 + 187 Indian Ports Association

Airports (No) 6 133 Airport Authority of India

Social indicators

Literacy rate (%) 73.5 64.8 Census of India, 2001

Birth rate (per 1,000 population) 16.0 22.8Ministry of Health and Family Welfare, RHS

Bulletin, March 2008


*Calculated in Indian rupee terms


8

Tamil Nadu in figures … (2/2)

Parameter Tamil Nadu All-states Source

Ease of doing business

FDI inflows (US$ billion) 5.7 120.2Department of Industrial Policy and Promotion,

April 2000 to May 2010

Outstanding investments

(US$ billion) 135.4 1,972.6 CMIE, as of March 2010

Industrial infrastructure

PPP projects (No) 39 515 www.pppindiadatabase.com

SEZ (No) 57 363Notified as of July 2010,

www.sezindia.nic.in

Parameter Tamil Nadu Government

Policy support

Sectors with specific policiesIndustry overall, micro, small and medium industries, IT and ITeS,

tourism, biotechnology, textiles

Availability of labour Adequate skilled labour available

PPP: public private partnership, SEZ: special economic zone



9

Key industries with policy thrust and factor advantages

Medium HighLow

Medium

High

Automotive

Banking and

financial services

Cement

Minerals

Engineering

Chemicals and

fertilisers

Agro-industry

Tourism

IT

Leather

Electronics

Polic

y th

rust

Factor advantage

Textiles

*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital



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Contents








11

Socio-economic snapshot of Tamil Nadu

Parameters Tamil Nadu

Capital Chennai

Geographical area (sq km) 130,058

Administrative districts (No) 32

Population density (persons per sq km) 480

Total population (million) 62.4

Male population (million) 31.4

Female population (million) 31.0

Population growth rate 1991-2001 (%) 11.2

Sex ratio (females per 1,000 males) 987

Literacy rate (%) 73.5

Male (%) 82.4

Female (%) 64.4

Birth rate (per 1,000 live population) 16.0

Sources: Economic Survey of Tamil Nadu 2007-08, Directorate of Economics and Statistics, Census 2001,

Ministry of Health and Family Welfare, Sample Registration System 2008

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE


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Tamil Nadu‟s GSDP

• At current prices, the Gross State Domestic Product (GSDP) of Tamil Nadu was about US$ 73.7 billion in 2008-09.

• The average GSDP growth rate from 1999-2000 to 2008-09 was about 11.0 per cent.

Tamil Nadu‟s GSDP (US$ billion)

Source: CMIE


28.8

30.4

31.0

34.7

40.1

44.8

52.2

65.9

75.9

73.7

0.0 20.0 40.0 60.0 80.0

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

US$ billion


CAGR11.0%

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Tamil Nadu‟s NSDP

• The Net State Domestic Product (NSDP) of Tamil Nadu was about US$ 65.0 billion in 2008-09.

• The average NSDP growth rate from 1999-2000 to 2008-09 was about 10.9 per cent.

Tamil Nadu‟s NSDP (US$ billion)

Source: CMIE


25.7

27.0

27.4

30.3

35.2

39.2

45.7

57.9

66.8

65.0

0.0 20.0 40.0 60.0 80.0

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

CAGR10.9%

US$ billion


14

The tertiary sector has an increasing share in Tamil Nadu‟s

economy

• The tertiary sector‟s share in GSDP was 56.7 per cent in 2008-09. Trade, hotels and restaurants –the largest sub-group of the sector – registered a growth of 11.9 per cent over the previous year.

• The share of the secondary sector in GSDP was 30.6 per cent in 2008-09; its growth was driven by manufacturing, which recorded a growth of 10.1 per cent between 1999-2000 and 2008-09.

Percentage distribution of GSDP

Source: CMIE

CAGR


17.4 12.7

29.630.6

53.1 56.7

1999-00 2008-09

Primary Sector Secondary Sector Tertiary Sector


11.3%

7.0%

11.7%

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Per capita GSDP


• In 2008-09, the state‟s per capita GSDP was US$ 1,110.8.

• The per capita GSDP increased at a CAGR of 10.1 per cent between 1999-2000 and 2008-09.

467.4 488.8 493.9547.6

628.2695.1

803.7

1,007.6

1,150.9 1,110.8

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Source: CMIE

Per capita GSDP

(US$

)


16

39.6%

7.1%

5.2% 4.2%

38.9%

6.1% 4.5% 4.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Food Education Medical Durable goods

All-India Tamil Nadu

Consumer expenditure on household goods and services

Source: Household Consumer Expenditure in India, 2007-08 NSS 64th Round

Share of average monthly per capita expenditure on household goods and other services

• Tamil Nadu is comparable to the all-India level with regards to share of expenditure on food, education, medical and durable goods.


52.3%

3.7% 6.3%3.6%

50.3%

4.7%5.6% 3.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Food Education Medical Durable goods

All-India Tamil Nadu

Urban Rural


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Socio-economic profile of key cities

Chennai, Coimbatore and Madurai are the three major cities of Tamil Nadu.

• Chennai is the largest urban metropolis of the state.

• Coimbatore is a major textiles and engineering hub of South India.

• The hill stations of Ooty, Coonnor and Valparai are close to Chennai, making it a good base for tourists, all year round.

• Madurai is regarded as the „Temple City‟ and is known for its cultural significance.

CityEstimated

households (million)

Average household size

(persons per household)

Per capita

income (US$)

Chennai‟s share

in state‟s urban

population (%)

Chennai‟s share in

state‟s urban

income (%)

Chennai 1.6 4.1 806.0 2.2 3.6

Source: Marketing Whitebook, 2009-2010



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Key industries in Tamil Nadu … (1/2)

Key industries

• Textiles

• Heavy commercial vehicles

• Automobile and auto components

• Railway coaches

• Power pumps

• Leather tanning industries

• Cement

• Paper

• Safety matches

• Steel

• IT and ITeS

• Electronics

• Tamil Nadu Industrial Development Corporation Limited (TIDCO), State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and Tamil Nadu Small Industries Development Corporation Limited (SIDCO) are jointly responsible for developing industrial infrastructure in the state.

• Tamil Nadu Industrial Guidance & Export Promotion Bureau has been constituted with the objective of attracting major investment proposals into Tamil Nadu.



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• Micro and small industries account for 95 per cent of industrial units, 40 per cent of the output of the manufacturing sector and 35 per cent of the state‟s exports.

• A large number of textile mills and engineering units are present around the city of Coimbatore. The districts of Coimbatore, Tirupur and Erode are referred to as the „Textile Valley of India‟.

• Tamil Nadu is an important IT hub. It is the second-largest software exporter by value in India, after Karnataka. Software exports from Tamil Nadu have increased from US$ 3.0 billion in 2005-06 to US$ 8.9 billion in 2009-2010 at a CAGR of 31.2 per cent.

• In the last two decades, Tamil Nadu has attracted investments in the automotive industry, particularly, in cars, railway coaches, tractors, motorcycles, automobile spare parts and accessories, tyres and heavy vehicles. The automotive industry has a crucial role in driving the state‟s economy; it contributes about 8 per cent to GSDP, providing direct employment opportunities to about 300,000 people.

Key industries in Tamil Nadu … (2/2)



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District-wise key industries … (1/2)

District Industries

Coimbatore Textile mills, motor pump sets and engineering goods

Cuddalore Fisheries, khadi and village industries

Dharmapuri Sugar mills

Dindigul Tannery, lock- and safe-manufacturing units, food processing units

Erode Sugar mills, poultry farms, handlooms and power looms, leather

Kancheepuram Textiles

Kanyakumari Fisheries

Karur Paper, textile, sugar, bus body-building shops

Krishnagiri Granite processing units

Madurai Chemicals, agro-based units, mechanical engineering, glass ceramics, hosiery, leather

Nagapattinam Cottage industries and handicrafts

Namakkal Poultry, textile weaving, truck body-building

Perambalur Cement

Pudukkottai Straw-based and agro-based industries, cashew



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District-wise key industries … (2/2)

District Industries

Ramanathapuram Spinning mills

Salem Mineral-based industry (steel), sandalwood, dairy

Sivaganga Textiles

Thanjavur Agro-based industries (coconut and palm oil)

Nilgiris Tea

Theni Handloom, food processing units, safety matches

Thoothukudi Power, match industry, chemical and fishing industries, pearls

Tiruchirapalli Textiles, engineering

Tirunelveli Mineral-based industry

Thiruvallur Fertilisers, refineries

Tiruvannamalai Spinning mills, textile mills

Tiruvarur Khadi and village industries

Vellore Leather and leather-based industries

Villupuram Sugar

Virudunagar Textile mills, cement factories, match and fireworks, printing



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Sugar cane, food grains and horticulture are the key agricultural

products

Crop

Annual production as

of 2008-09

(„ooo tonnes)

Sugarcane 32,220.0

Rice* 5,498.0

Coconut 3,419.3

Groundnut 1,010.0

Maize 760.0

Jowar (Sorghum) 290.0

Onion 305.5

Cotton* 244.0

Tea 153.0

Bajra (Millet) 100.0

• Tamil Nadu‟s top ten crops account for over 99 per cent of its total crop production.

• In 2008-09, the total production of the major crops of Tamil Nadu was over 54.8 million tonnes. Of these, sugarcane production was the highest at 32.2 million tonnes; it was followed by rice, coconut and groundnut.

• Tamil Nadu is India's fifth-largest producer of rice in India. The state accounts for nearly 6 per cent of the area under fruits and 4 per cent of the area under vegetables in the country.

• It is the largest producer of bananas, flowers and tapioca, the second-largest producer of mango, natural rubber, coconut, and groundnut and the third-largest producer of coffee, tea and sugarcane.

*As of 2007-08

Source: CMIE



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Tamil Nadu‟s exports trends

• Tirupur and Erode are the country's largest exporters of knitwear. About 56 per cent of India's total knitwear exports come from Tirupur.

• Software exports from Tamil Nadu have increased from US$ 3.0 billion in 2005-06 to US$ 8.9 billion in 2009-2010 at a CAGR of 31.2 per cent.

• With the third-longest coastline in India, Tamil Nadu represented 28 per cent of the total value of fish and fishery products exported by India in 2007-08.

• Tamil Nadu exported about 72,644 tonnes of fish and fish products, worth US$ 45 million, in 2007-08.

Annual exports growth trends (%)

Source: Capital Markets


44.6

13.2

20.8

14.9

35.9

53.9

36.6

14.4

-9.9

-20.0 0.0 20.0 40.0 60.0

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09


24

• As of March 2010, outstanding investments in the state were US$ 135.4 billion.

• Of the total investments, the electricity and services sectors accounted for over 30 per cent each.

• While electricity sector attracted US$ 47.5 billion, the services sector secured investments worth US$ 44.1 billion.

• FDI inflows between April 2000 and May 2010 were at US$ 5.7 billion.

Investments and FDI inflows

Source: CMIE

Break up of investments by sector


35.1%

32.6%

14.1%

11.0%

2.8% 2.1% 2.3%Electricity

Services (other than financial)Chemicals

Construction

Machinery

Mining

Others

Others include non-metallic mineral products, food & beverages, textiles and irrigation


25

Contents








26

Road network • Tamil Nadu has 24 National Highways running

through it. The state is also an important terminus in the Golden Quadrilateral road link of the National Highway Authority of India (NHAI).

• The district centres are linked through 187 State Highways.

• Tamil Nadu is one of the first states in India to have achieved 100 per cent metalled road connectivity even in the rural areas.

• The overall road density is 1,588 km per 1,000 sq km, against the national average of 1,115 km per 1,000 sq km in 2008-09.

• The State Express Transport Corporation (SETC), formerly, ThiruvalluvarTransport Corporation was established in September 1975 and provides road transport services within the state.

• To upgrade road infrastructure, the State Government is implementing a World Bank-funded project at a cost of US$ 500 million.

Road type Road length (km)

National Highways 4,832

State Highways 9,264

Major district roads 9,451

Other district roads 38,256


INFRASTRUCTURE STATUS

Source: Ministry of Road Transport & Highways, Annual

Report 2008-09, Economic Survey of Tamil Nadu 2007-08


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Ports

Chennai‟s ports

Major ports • Chennai

• Ennore

• Tuticorin

Minor ports • Cuddalore

• Nagapattinam

• Rameswaram

• Pamban

• Colachel

• Valinokkam

• Kanyakumari

• Ennore

• Punnakayal

• Thirukkadaiyur

• PY-3 (Oilfield)

• Kattupalli

• Thiruchopuram

• Manappad

• Kudankulam

• Tamil Nadu has three major ports, at Chennai, Ennore and Tuticorin; it has 15 minor ports.

• As of March 2009, the total traffic at Chennai, Ennore and Tuticorin ports was 57.5 million tonnes, 11.5 million tonnes, and 22.0 million tonnes, respectively.

• Together, the three ports accounted for about 12.3 per cent of the total traffic at all major ports across the country. Between, 2000-01 and 2008-09, the major-port traffic increased at an average rate of 7.6 per cent, annually.

• The Chennai port handles, mainly, container cargo while the Ennore and Tuticorin ports handle coal, ores and other bulk minerals.


Source: Indian Ports Association


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Airports

International airport

Domestic airport

• Tamil Nadu has international airports at Chennai and Trichy; it has domestic airports at Chennai, Coimbatore, Tuticorin and Madurai.

• An import cargo complex has come up in a 27,000 sq m area at the Chennai airport.

• The Chennai international airport was the first in the country to get ISO 9001-2000 certification.

• Construction work has begun on a new passenger terminal at the Chennai international airport. The terminal, with a capacity of 10 million domestic passengers is scheduled for completion by 2011.

• Electronic Data Interchange (EDI) facility for customs clearance is available at the Chennai airport.

• A new integrated terminal building has been constructed at Madurai airport and is awaiting inauguration.

Chennai

Trichy

Coimbatore

Tuticorin

Madurai



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Railways

• Tamil Nadu‟s railway network falls under the jurisdiction of the Southern Railways, which covers Tamil Nadu, Kerala, Pondicherry and a small part of Andhra Pradesh.

• It has six divisions, four of which are in Tamil Nadu; they are Chennai, Tiruchirapalli, Madurai and Salem. Comibatore is also a key railway junction.

• Tamil Nadu has a 5,924 km rail network, with a track density of 32.2 km per 1,000 sq km; the state has 541 railway stations.

• Chennai also has a well-established suburban railway network that connects it to the suburbs and the neighbouring cities.

• The mass-rapid-transit system (MRTS) is an elevated line of the suburban railway in Chennai; it runs from the Chennai beach to the Velacherysuburb, covers a distance of 25 km and has 21 stations. It is owned by the Southern Railways.




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Power … (1/2)

Installed power capacity (MW)

Source: Central Electricity Authority

• Tamil Nadu‟s power is generated by the Tamil Nadu Electricity Board (TNEB) and by independent power producers (IPP) such as GMR, Bhoruka and Jindal. Central sector generators such as Neyveli Lignite Corporation and Nuclear Power Corporation also have their power plants in the state.

• Renewable energy is a growing sector in the state‟s rural areas. The Tamil Nadu Energy Development Agency (TEDA) is the nodal agency of the Ministry of New and Renewable Energy (MNRE), Government of India, for promoting renewable energy schemes in the state.

• TEDA has taken up research and development projects, jointly, with the Anna University; the total outlay is US$ 0.87 million.

• The installed power capacity in Tamil Nadu has increased from 11,493.1 MW in 2005-06 to 14,410.0 MW in 2009-2010.


11,493.1

13,005.3 13,563.4 14,088.8 14,410.0

-

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

14,000.0

16,000.0

2005-06 2006-07 2007-08 2008-09 2009-10


31

• Tamil Nadu is one of the few states that have an integrated utility structure, i.e., power generation, transmission and distribution are all handled by a single, state-owned entity: TNEB.

• To strengthen the power supply situation, Tamil Nadu has planned to develop a number of power projects; they add up to over 14,000 MW and include projects from, both, the public and private sectors. The aim is to make the state power sufficient by 2011 and power surplus after 2012.

• As on March 31, 2010, the state had1,345 substations, 0.2 million circuit km of extra high tension lines/high tension lines, 0.5 million km of low tension (LT) lines,0.2 million distribution transformers and 21.2 million service connections.

Power … (2/2)

Type Consumers (No)

Domestic 14,142,186

Agricultural 1,911,819

Commercial 2,632,141

Industrial 509,830

Others 2,008,930

Total 21,204,906

Source: Policy Note on Energy, Tamil Nadu, 2009-2010


Electricity consumers in Tamil Nadu


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Telecom

• According to estimates by Telecom Regulatory Authority of India (TRAI), there were 53.7 million wireless connections and 3.6 million wire-line connections in Tamil Nadu as of March 2010. The state had a a tele-density of 30.81.

• In terms of average wireless connectivity per 100 persons, Tamil Nadu stands above the national average; it accounted for 10 per cent of India‟s net wireless user base, as of March 31, 2010.

• The Bharti-Sing Tel submarine cable link between Chennai and Singapore has a bandwidth of 8.4 terabits per second; a second submarine cable of 5.12 terabits per second bandwidth has been commissioned by Tata Communications Limited (formerly, VSNL) between Chennai and Singapore.

Telecom infrastructure as of 2009

GSM cellular subscribers: 36,117,977*

Internet/broadband subscribers: 644,912

Post offices: 15,619

Wireless connections: 53,682,712

Wire-line connections: 3,573,016

Telephone exchanges: 2,147

Telecom operators in Tamil Nadu

• BSNL

• Bharti Airtel

• Aircel

• Reliance Communications

• Vodafone Essar

• Tata Teleservices

• Tata Docomo

• Uninor

• Virgin Mobile


Sources: Telecom Regulatory Authority of India, Ministry of

Communications & Information Technology

*As of June 2010


33

• The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) covers the town panchayats that fall within Chennai Metropolitan Development Authority limits and urban agglomeration area of Madurai and Coimbatore. Forty five towns have been identified under the JNNURM.

• The thrust areas for development under the JNNURM include water supply and sanitation, sewerage, solid-waste management, road network, urban transport and redevelopment of inner-city areas; also envisaged is the shifting of industrial and/or commercial establishments to designated areas.

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 52 projects costing US$ 346 million have been sanctioned for Tamil Nadu. The projects have been sanctioned for completion between 2006-07 and 2009-2010. Key areas of development are water supply, sewerage, storm water drainage, solid waste management and roads.

Urban infrastructure



34

Public private partnership (PPP) projects

Project name Sector PPP type Project cost (US$ million) Stage

Two-lane bridge and improvement of existing bridge

across the river Korathalayar on NH-5Transport BOT 5.4 In operation

Coimbatore by-pass and Athupalam bridge on NH-7 Transport BOT 22.8 In operation

Improvement and maintenance of East Coast Road Transport BOT 13.0 In operation

Sewerage treatment plant for underground drainage

in Alandhur by Tamil Nadu Urban Infrastructure

Financial Services (TNUIFSL).

Sewerage and

water supplyBOT 1.3 In operation

Tirupur water supply and sewerage projectSewerage and

water supplyBOOT 235.0 In operation

Bio-conversion treatment facility for municipal solid

waste by TNUIFSL

Sewerage and

water supplyBOT 0.9 In operation

IT-ITeS SEZ with integrated international convention

centre, TaramaniIndustrial SEZ Joint venture 523.9 Pipeline

Multi-product SEZ, Krishnagiri district Industrial SEZ BOOT 500.0 Pipeline

Multi-product SEZ, Perambalur district Industrial SEZ BOOT 326.1 Pipeline

Construction of outer-ring-road (Phase-I, 26.7 km) Roads DBOOT 239.1 Pipeline

Construction of quarters for staff and public at

Foreshore estateHousing BOOT 152.2 Pipeline

Source: pppindiasdatabase.com

BOT: Build-operate-transfer, BOOT: Build-own-operate-transfer, DBOOT: Design-build-own-operate-transfer, TNUIPSL: Tamil Nadu Urban

Infrastructure Financial Services Limited



35

Education sector … (1/2)

Educational infrastructure as of 2009

• Universities: 64

• Medical colleges: 21

• Engineering colleges: 456

• Arts and science colleges: 578

• Polytechnics: 366

• Industrial training institutes: 669

Sources: Tamil Nadu Policy Note on Higher Education

2009-2010, Tamil Nadu Statistical Abstract 2010

• The state has a strong primary education sector; about 5,711,315 students joined the primary schools in 2008-09.

• Private participation is being encouraged in technical and vocational education.

Premier institutions in Tamil Nadu

• University of Madras

• Institute of Technology (IIT), Madras

• Anna University

• National Institute of Technology (NIT)

• Madras Medical College

• Christian Medical College (CMC), Vellore

• Tamil Nadu Agricultural University

• Tamil Nadu Veterinary and Animal Sciences University

(TANUVAS)



36

Literacy rates (%)

Total literacy rate 73.5

Male literacy 82.4

Female literacy 64.4

Source: Tamil Nadu Statistical Abstract 2010

• Tamil Nadu had an overall literacy rate of 73.5 per cent as per Census 2001; the male literacy rate was 82.4 per cent and female literacy rate was 64.4 per cent.

• Tamil Nadu is among the states running the Total Literary Campaign, the Post-Literacy Mission and the Continuing Education Programme (CEP).

Tamil Nadu‟s primary education statistics as of 2009

Number of schools

Primary: 43,916

High schools: 4,563

Higher secondary: 4,847

School dropout rate (%)Primary level: 1.9

Upper primary level: 4.1

Pupil-teacher ratio Primary: 30

Upper primary: 25

Net-enrolment ratio Primary: 99.3 per cent

Upper primary: 98.3 per cent

Education sector … (2/2)



37

Health infrastructure

• The state has a three-tier health infrastructure comprising of primary health centres, health units, community health centres and sub-centres.

• A pioneering scheme has been launched, enabling 10 million poor families to receive specialist treatment up to US$ 0.1 million for 51 life-threatening diseases.

Health infrastructure

• Hospitals: 331

• Primary health centres: 469

• Sub-centres: 8,706

• Dispensaries for modern medicine: 216

Health indicators of Tamil Nadu

Population served per medical institution (No) 5,842

Population served per hospital bed (No) 3,049

Birth rate* 16.0

Death rate* 7.4

Infant mortality rate** 31

Life expectancy at birth (years)

Male 65.0

Female 67.4

Sources: Ministry of Health and Family Welfare, Ministry of Health

and Family Welfare, Sample Registration System 2008

Tamil Nadu Statistical Abstract 2010

*Per thousand persons

**Per thousand live births


Source: Ministry of Health and Family Welfare


38

Cultural infrastructure

• Tamil Nadu is known as the Land of Temples; nearly 33,000 ancient temples – many at least 600 to 800 years old – are scattered all over the state.

• The Sports Development Authority of Tamil Nadu (SDAT) is responsible for developing sports-related infrastructure in the state.

• The Young Men‟s Christian Association (YMCA) College of Physical Education, Chennai, was established in 1920 and, was the first college for physical education in Asia.

• The M. A. Chidambaram Stadium of Chennai is an international cricketing arena with a capacity of 50,000; it also has the offices of the Tamil Nadu Cricket Association. The Chennai Open Tennis championships are held every January at the SDAT Tennis Stadium. The Jawaharlal Nehru Stadium in Chennai is a multipurpose stadium that hosts football tournaments, and track and field events.

• Chennai also hosts the annual Madras Music Season during December-January; it includes performances by a number of artists, all over the city.

• Bharatanatyam is a well known classical-dance form of Tamil Nadu.

• From the beaches in the East to Nilgiri hills in the West, Tamil Nadu offers different types of avenues for adventure, leisure and culture tourism.



39

Industrial clusters and SEZs … (1/3)

Infrastructure Description

Industrial parks

The SIPCOT Export Promotion Industrial Park (EPIP) is spread over 224 acres at

Gummidipoondi in the Thiruvallur district.

An industrial park has been set up at Irungattukottai for the automotive, electronics, food

processing, general engineering and other non-polluting industries. So far, 49 units have been

allotted in the park.

The hi-tech SEZs in the Sriperumbudur Industrial Park and Orangadam Industrial Growth

Centre (both in Kancheepuram district), are spread over 570.92 acres and 347.66 acres,

respectively. They are home to manufacturing units in the electronics, telecom hardware and

support services sectors.

Madras Export Processing

Zone (MEPZ)

Established in 1984 to promote FDI; one of the seven export-promotion zones (EPZ) set up by

the Government of India – MEPZ is a multi-product export zone with 110 functional units and

another 24, in the process of being set up.

SIPCOT‟s SEZs

SIPCOT‟s SEZs comprise a leather SEZ in the Vellore district, a footwear SEZ in the

Kancheepuram district, an engineering-products SEZ in the Erode district, an automotive SEZ in

the Thiruvannamalai district and a transport engineering-goods SEZ in the Tirunelveli district.



40

Infrastructure Description

TIDCO‟s SEZs

TIDCO has received in-principle approval from the Government of India for establishing multi-

purpose SEZs at Nanguneri (Tirunelveli district), Ennore (near Chennai), Hosur (Krishnagiri district)

and at Perambalur.

TIDCO and Rankindo Developers Private Limited have jointly developed an integrated township

with IT SEZ in Coimbatore.

An India-Singapore SEZ is coming up in the Thiruvallur district.

Two IT and ITeS SEZs coming up at TIDEL Park, Chennai, a company jointly promoted by TIDCO

and Electronics Corporation of Tamil Nadu Limited (ELCOT).

Apparel parks

Two apparel parks have been set up, one at Tirupur and the other at Irungattukottai near Chennai

with a project cost of US$ 133 million including Government of India assistance of US$ 6.5 million.

The Tirupur park has commenced production.

Hi-tech weaving parks

Two hi-tech weaving parks have been inaugurated at Kumarapalayam and Palladam.

Another hi-tech weaving park is being set up at Andipatti.




41

Source: sezindia.nic.in

Industry Locations SEZ

(No)

IT, hardware and

bio-informatics

Chennai,

Kancheepuram,

Chengalpet,

Coimbatore

10

Automotive Chennai 1

Apparel and

fashion accessories

Chennai,

Cheyyar

2

Telecom

equipments, R&D

Sriperumbudur 1

Electronics

hardware

Sriperumbudur,

Oragadom

3

Hi-tech engineering Coimbatore 1


Source: tidco.com



42

Major investments in the infrastructure sector

• As of March 2010, over US$ 29.2 billion of investments have been made for ramping up Tamil Nadu‟s infrastructure.

• Over 50 percent of infrastructure-related investments have been made in the area of power generation and distribution.

• Apart from power, shipping and roads are the other key infrastructure sectors attracting investments.

*Generation and distribution

Source: CMIE


Infrastructure typeInvestments

(US$ million)

Power* 15,406.3

Road 4,073.6

Railway 3,806.4

Shipping 2,800.8

Airports 567.1


43

Contents








44

STATE POLICIES AND INCENTIVES

E-waste policy, 2010

Aim: To minimise e-waste generation, utilise e-waste for beneficial purposes through environmentally sound recycling, ensure

environmentally sound disposal of residual waste.

Key focus areas:

• Detail the action programme for implementing the policy with definite time lines.

• Setting up of a monitoring committee to monitor the implementation of the policy.

• Promoting e-waste recycling as a socially good and viable industry in Tamil Nadu.

• Creating awareness and involving all stakeholders to be responsible in fulfilling their role in environmentally sound

management of e-waste.

• Involving the small and medium enterprises (SMEs) in Tamil Nadu in environmentally sound management of e-waste.

Policy elements:

• The policy shall enable compliance with the existing regulations and identify the areas for regulatory reforms.

• The policy shall facilitate in the management of e-waste through the 3R principle of reduce, reuse and recycle e-waste

ensuring that such wastes do not cause any adverse effects to the environment or human health.

• E-waste management activities shall be strengthened through capacity building and continued efforts on research and

development.

• E-waste management involves many stakeholders in its value chain and the policy envisages the need for partnership

programmes involving these stakeholders.

• The policy shall provide for creating awareness and dissemination of information.

Sector-specific policies … (1/12)


45


Tamil Nadu Business Facilitation Bill, 2009

Aim: Introduced in July 2009 to facilitate the single-window clearance system, with the statutory powers to hasten project

approvals.

• As part of the legislation, the State Government will constitute two authorities, one at the state-level and the other at the

district level, for speedy clearances in setting up industrial projects.

• The bill also seeks to facilitate entrepreneurs by furnishing self-certification at the time of submitting the application form to the

authority.



46

Micro, Small and Medium Industries Policy, 2008

Aim: To develop micro, small and medium enterprises (MSME) in the state.

• The policy focuses on the development of MSMEs in the state by way of infrastructure development, incentive schemes,

technology development, subsidy schemes for units located in industrially backward areas, skill development, marketing

support, deregulation and simplification, administrative reforms and rehabilitation of sick enterprises.

Incentives and concessions:

• A capital subsidy will be extended at the rate of 15 per cent on eligible plant and machinery as indicated in the Micro, Small

and Medium Enterprises Development (MSMED) Act, 2006 and Rules.

• A low tension power tariff will be available at a flat rate of 20 per cent for the first 36 months from the date of

commencement of production or from the date of power connection, whichever is later.

• All micro-manufacturing enterprises will be entitled to subsidy equal to the assessed value added tax (VAT) paid by them for

the first six years after commencement of production.

• Micro manufacturing enterprises will be exempted from payment of stamp duty on mortgaged and pledged documents.

• Employment-intensive subsidy of an additional 5 per cent, subject to a maximum of US$ 10,000 will be granted, if at least 25

workers have been employed for a minimum period of three years, within the first five years from the date of

commencement of production.

• An additional capital subsidy of 5 per cent, subject to a maximum of US$ 4,000 will be given to enterprises set up by women,

persons belonging to the scheduled castes and scheduled tribes, physically disabled and transgender entrepreneurs.

• An additional capital subsidy of 25 per cent will be given on the value of plant and machinery installed to promote cleaner and

environment-friendly technologies.




47

New Industrial Policy, 2007

Aim: To stimulate further industrial development, attract investments, facilitate setting up of new manufacturing units and enable

global manufacturing competence and competitiveness of local industry.

Key objectives:

• Manufacturing identified as the “main engine for economic growth”.

• Creating two million additional jobs by 2011and positioning Tamil Nadu as the most attractive investment destination.

• Raising the contribution of the manufacturing sector to GSDP to 27 per cent by 2011.

• Providing a facilitating environment for the industry to capture a larger share of global goods and services trade.

• Reforming regulatory processes and removing procedural hurdles while doing business.

• Enabling integration of existing industrial clusters with global supply chains.

• Building efficient and dependable industrial infrastructure.

• Developing world-class human resources and intellectual capital.

• Encouraging symbiosis with small and medium enterprises (SME) in major industry clusters.




48

New Industrial Policy, 2007 (continued)


• New manufacturing facilities, set up with an investment in (identified) fixed assets of over US$ 54 million in a period of three

years, would be eligible for a structured package of incentives. However, for units in the Chennai, Thiruvallur and

Kancheepuram districts, the applicable minimum investment level would be US$ 76 million.

• For the electronic hardware units the eligibility level for receiving structured package assistance on investments in new and

expansion projects, would be US$ 33 million in (identified) fixed assets within a period of three years. However, for the

Chennai, Thiruvallur and Kancheepuram districts, the minimum investment eligibility level would be US$ 54 million.

• Industrial units in existence for over 10 years would be given suitable extra benefits, for expansion projects, over and above

the normal structured package of incentives.

• New or expansion manufacturing facilities with investments in (identified) fixed assets of over US$ 325 million will be treated

as super-mega projects; they would be eligible for incentives over and above the normal structured package.

• A back-ended state capital subsidy and electricity tax exemption on power purchased from TNEB or generated and

consumed from captive sources would be sanctioned for all manufacturing units, based on employment and investment in

identified fixed assets within three years.

• An industrial infrastructure subsidy of US$ 450,000 would be given for approved infrastructure projects involving investment

of US$ 65 million in three years.




49

Textiles Policy, 2006-07

Aim: To facilitate and promote the growth of the textile industry, achieve global standards in product quality, contribute more to

exports and encourage textile clusters.

Thrust areas:

• Production of textiles to cater to the quantity, quality and price requirements of, both, domestic and international markets,

keeping in view the industry's potential for employment.

• Identification of markets, products for each market, inputs required, technology, human and financial resources.




50

Tamil Nadu ITeS Policy, 2005

Aim: To facilitate the growth of ITeS sector.

Key initiatives:

• Attracting maximum share of global ITeS investments into Tamil Nadu.

• Developing human resources specific to the ITeS sector.

• Creating world-class infrastructure for IT and ITeS, and a framework for protection of intellectual property and data.

• Generating employment and other ITeS opportunities in the major cities of the state.

• Providing a conducive environment for the sector by reducing regulations and increasing opportunities.


• An industry set up anywhere in Tamil Nadu having investments:

• between US$ 10 million and US$ 22 million is eligible for a capital subsidy of US$ 50,000.

• between US$ 22 million and US$ 45 million is eligible for a subsidy of US$ 100,000.

• Of US$ 45 million and above is eligible for a subsidy of US$ 200,000.

• New industrial units where over 40 per cent of the total workers employed are women, shall be eligible for an additional capital subsidy of 5 per cent of investment in fixed assets, subject to a ceiling of US$ 20,000.

• Stamp duty and registration fee exemption of 50 per cent to be given at the time of purchase of land and building for IT industries.

• ITeS industries will be assisted in obtaining necessary cable and satellite links; ELCOT will be the nodal agency.

• Special concessions to ITeS companies employing physically handicapped persons.

• Government will encourage ITeS industries to obtain International Process Quality Certification like Certificate of Personnel Competencies (COPC), International Organisation for Standardisation (ISO), etc., by way of cash reimbursements.




51

Tamil Nadu SEZ Policy, 2003

Key initiatives:

• Providing legislative support to SEZs.

• Providing adequate water supply to SEZs.

• Ensuring continuous power supply of required quality to SEZ units.

• Providing single-window clearance to all SEZ units.


• Labour rules simplified for SEZs.

• TNEB will ensure continuous supply of power to all the units within the state.

• The SEZ developer, in association with the government agencies, will ensure sufficient supply of water to the units within the

SEZ.




52

Tamil Nadu IT Policy, 2002

Aim: To sustain the momentum in IT and accelerate the twin benefits of economic prosperity and increased employment.

Objectives:

• To establish Tamil Nadu as the “Destination of Choice” for IT investments.

• To upgrade the quality for the citizens through e-governance and IT applications in the government.

• To promote research and development.

• To empower people in the rural areas so as to bridge the urban rural digital divide.

Key focus areas for 2009-2010:

• Establishing an e-governance training academy to train officers and staff of all government departments.

• Establishing IT-ITeS SEZs at Sholinganallur and Perumbakkam, near Chennai.

• Establishing IT parks in Coimbatore, Madurai, Trichy, Salem, Hosur, Vellore and Tirunelveli.

• Establishing a national centre of excellence called Indian Institute of Information Technology, Design and Manufacturing.

New schemes introduced for the year 2009-2010:

• Skill building initiatives for e-governance programmes and repositioning investment strategy in the new world economic

environment.

• Production of e-lectures for subjects offered by the Tamil Virtual University.




53

Tamil Nadu IT Policy, 2002 (continued)


• An industry set up anywhere in Tamil Nadu and having investments:

• between US$ 10 million and US$ 22 million is eligible for a capital subsidy of US$ 50,000.

• between US$ 22 million and US$ 45 million is eligible for a subsidy of US$ 100,000.

• Of US$ 45 million and above is eligible for a subsidy of US$ 200,000.

• Capital subsidy to the electronics industries at 20 per cent of fixed assets, subject to a maximum of US$ 4,000 will be available for all IT industries.

• New industrial units where over 40 per cent of the total workers employed are women, shall be eligible for an additional capital subsidy of 5 per cent of investment in fixed assets subject to a ceiling of US$ 20,000.

• Stamp duty and registration fee exemption of 50 per cent to be given at the time of purchase of land and building for IT industries.

• An IT Park is to be treated as an industry and eligible for backward-area capital subsidy benefits.

• All software industries including services and training institutions in IT are entitled to „industry‟ status.

• Special concessions to IT companies employing physically handicapped persons.

• All software companies will be exempted from the Tamil Nadu Pollution Control Act.

• There will be an executive authority of the park, in all the technology parks set up by the government and joint ventures, who will function as the single-window for all statutory clearances required for the units, within the park.

• Separate task forces will be established on cyber security, prevention of cyber crimes and IT infrastructure.




54

Tourism Policy, 2002

Aim: To attract more long duration tourists and provide them with world-class infrastructure.

Key focus areas for 2009-2010:

• Responsible tourism to be introduced to the local populace (hosts) to inculcate a sense of responsibility towards the eco-

system, best practices and caring for guests; also encouraging tourists to be more responsive to local cultures and customs.

• Beautification of select tourism destinations.

• Development of the eco-tourism circuit and adventure tourism.

• Promotion of rural tourism.

• Marketing of the newly introduced “hop-on-hop-off” tours in Chennai.

• Participation in international and national travel marts, organisation of fairs and festivals.




55

Biotechnology Policy, 2001

Aim: To provide modern processes together with traditional biotechnology products, especially, in the area of industrial and food

enzymes.

Key focus areas:

• Focus on human and animal healthcare, agriculture, food, environment and industrial products.

• Creation of biotechnology enterprise zones (bio-valleys).

• Regulatory facilitation for establishing a biotech entity for commencing research activity.

• Strengthening the human resources pool.

• Establishing emerging technologies fund for biotechnology.

• Establishing the Tamil Nadu Biotechnology Board (TNBB).


• All biotech units undertaking commercial production would be treated as industry and would thus, be eligible for all

industrial incentives.

• Power will be supplied to them by the TNEB at industrial tariffs.

• The above mentioned facilities would be available, based on approval and/or certification by the TNBB.

• The bioinformatics units would be allowed to have floor-space-index (FSI) norms on par with IT Industries.




56

Contents








57

Textiles

• Tamil Nadu is known as the “yarn bowl” of the country.

• Tamil Nadu accounts for 47 per cent of the country‟s spinning capacity and nearly 60 per cent of the yarn exports.

• Coimbatore and Tirupur are the major textile centres in Tamil Nadu. Tirupur is known as „knitting city‟ and has about 3,000 exporters.

• The state produces about 1,612 million kg of spun yarn per year; it is about 40 per cent of the annual spun yarn production of the country. The state added 2.3 million spindles between 2001 and 2009.

• Tamil Nadu has 1,889 spinning mills (61 per cent of mills in India), 366,000 power looms and 413,000 handlooms.

• Chennai is globally known as an exporter of woven garments with about 2,400 registered exporters.

• Karur, Madurai and Rajapalayam are the other textile centres in the state.

Key players

• Madura Coats

• Loyal Textile Mills

• Premier Textile Mills

• Lakshmi Mills

• Thiagarajar Mills

• Virudhunagar Textile Mills

• Standard Spinning and Weaving Mills

• Primus Fabrics

• Gem Spinners

• The Kadri Mills (Cbe)

BUSINESS OPPORTUNITIES


58

Textiles – company profiles … (1/2)

Madura Coats Limited

(MCL)

• Established in 1947, the company supplies threads to clients such as Liz Clairborne, Lee, Levis, Gap,

Nike, Adidas and Tommy Hilfiger, among others. It operates through two divisions: Coats India and

Global Thread Supply India. The company has operations at Madurai, Ambasamudram (200 km

from Madurai) and Tuticorin.

Loyal Textile Mills Limited • Founded in 1956, it is a three-star export house recognised by the Government of India and

provides an array of products and services for the textile and apparel industries. The group

comprises two composite mills, a spinning mill, a dye-house, three garment manufacturing units, a

trading-cum-retailing company and two international trading companies.

• Products includes yarn, fabrics, garments, home textiles and organic products. The group has an

annual turnover of US$ 110 million, of which US$ 75 million is generated via exports. The

corporate office is located at Chennai and mills are at Kovilpatti, Sattur and Arasanur.

Premier Mills • Established in 1949, Premier Mills is a part of the Premier Group and manufactures and exports

fine-combed cotton yarn. The company produces over 18 million kg, annually. Headquartered in

Coimbatore, it exports to over 40 countries across the world.

Lakshmi Mills • Established in 1910 at Coimbatore. Lakshmi Mills had a revenue of US$ 18 million in 2009-2010. It

has two units to manufacture 100 per cent cotton yarns, blended yarns and yarns produced out of

special fibres. Products manufactured include yarns, fabrics and garments.



http://www.loyaltextiles.com/index.html

http://host.jwcinc.net/5360012/Coats_logo.jpeg

59

Thiagarajar Mills Private

Limited

• Established in1936, with a corporate office in Madurai, the Thiagarajar mills has three spinning mills

in India, all of which are dedicated to the production of three distinct count groups: fine-count-

combed cotton yarn, hosiery yarn, and coarse-count-combed cotton yarn.

Virudhunagar Textile

Mills Limited

• Established in 1946, a part of the Thiagarajar group and based at Virudhunagar near Madurai, the

company produces 1 million metres of fabric every month.

Standard Spinning and

Weaving Mills

• It is a part of the Standard Group of companies, which manufactures Standard Fireworks; has mills

at Sivakasi and Srivilliputtur.

Primus Fabrics • Founded in 1950, the group turnover is US$ 25 million for the spinning unit, US$ 12 million for the

weaving unit and US$ 15 million for home textile exports.

• It manufactures and exports bed sheets, duvets and home textiles, and is based in Tiruchengode.

• The total capacity is 50,000 spindles.

Gem Spinners • Established in 1994, the company produces quality knitted fabrics for the global market.

• The registered office is in Chennai. Export markets include Europe, Asia, Middle East and Africa.

The Kadri Mills (Cbe)

Limited

• The Kadri Group of companies is one of the premier industrial groups in South India, established in

1932 in Coimbatore.

• It produces yarns and a wide range of denim fabrics, terry towels and bath products.

Textiles – company profiles … (2/2)



60

Automotive industry

• Chennai is fast emerging as a major export hub of cars for the Southeast Asian markets.

• Tamil Nadu has a 30 per cent share in the Indian automotive industry.

• Auto components account for 30 per cent, trucks for 17 per cent, passenger cars for 20 per cent and two wheelers for 20 per cent of the automotive industry.

• Tamil Nadu‟s strong performance in the auto industry is because of the presence of skilled manpower with strong engineering capabilities.

• In Tamil Nadu alone, nearly US$ 1 billion has been invested by some of the major tyre companies, such as Apollo Tyres, ATC Tyres, MRF, Dunlop and TVS Srichakra.

Key players

• Ford Motor Company

• Hyundai Motor India Limited (HMIL)

• Mitsubishi Motors Corporation

• Ashok Leyland

• Sundram Fasteners

• Rane TRW

• Visteon

• PRICOL

• Nissan Motor India Private Limited

• Renault-Nissan

• Hindustan Motors (HM)

• Simpson and Company Limited

• Tatra Vectra Motors

• Royal Enfield (A unit of Eicher)

• Daimler India Commercial Vehicles Private

Limited

• Sona Koyo Steering Systems

• Saint-Gobain Sekurit India

• BMW



61

Automotive industry – company profiles … (1/5)

Ford Motor Company • Established in 1995 with an investment of US$ 351.1 million under the single-window policy, Ford

in India is a wholly-owned subsidiary of Ford Motor Company.

• Its plant located at Maraimalai Nagar near Chennai, has the capacity to produce 100,000 vehicles

per annum.

• The company plans to increase its car production capacity to 200,000 vehicles per annum by 2010

and is investing US$ 500 million on transforming its India business into a volume manufacturing and

export hub along with a regional centre of excellence for small car development and production.

• Ford sold 29,499 vehicles in 2009, clocking a 3 per cent year-on-year jump in its annual sales as

compared to previous year. The company sold 7,925 vehicles during August 2010, which was a 220

per cent increase compared to the same period in 2009.

Hyundai Motor India

Limited (HMIL)

• Established in 1997 with an investment of US$ 614 million, the company is a subsidiary of the

Hyundai Motor Company.

• The plant in Chennai is spread over 500 acres and has been built with an initial investment of over

US$ 500 million and markets over 18 variants of passenger cars across four models.

• The company reported 17.2 per cent growth in sales with sale of 50,636 units in August 2010 as

against 49,521 units in the corresponding period of last year.

Mitsubishi Motors

Corporation

• Mitsubishi Motors is present in India through a tie up with Hindustan Motors and has set up a

state-of-the-art manufacturing unit at Thiruvallur (near Chennai) at a cost of US$ 71 million.

• The main functional areas of the facility are the body (weld) shop, paint shop, assembly shop and

quality line. Eicher Motors Limited has a 3.18 per cent stake in Mitsubishi Motors Corporation.



62


Ashok Leyland • Established by the Hinduja group in 1948, the company manufactures commercial vehicles. It had a

revenue of US$ 1.6 billion in 2009-2010.

• It is India‟s largest exporter of medium and heavy duty trucks and was the first Indian automobile

company to be awarded the ISO 9002 certification in 1993, it has the mother plant at Ennore

(Chennai).

• The company has taken over the truck unit of the Czechoslovakia-based AVIA, giving it a foothold in

the highly competitive European truck market.

Sundram Fasteners • A part of the TVS Group and headquartered in Chennai, Sundram Fasteners was the first Indian

manufacturing company to get the ISO 9000 certification.

• It was also the first Indian component manufacturing company to have won the prestigious Total

Productive Maintenance (TPM) Excellence and Consistency Award from the Japan Institute of Plant

Maintenance.

Rane TRW • A part of the Rane Group, the company has a manufacturing facility at Alwarpet, Chennai.

• It is involved in the manufacture of steering systems and seat belts and has a joint venture partnership

with TRW Automotive JV LLC, USA. The company won the Deming Prize in 2005.

Visteon • Visteon started operations with two projects on a 50-acre facility at Maraimalai Nagar, near Chennai,

in 1999 using the single-window policy of the government.

• The company‟s customer base includes the 19 largest vehicle manufacturers in the world. It has a

global eco-system with over 170 technical, manufacturing, sales and service facilities in 26 countries.



http://www.sundram.com/index.php

63


Premier Instruments &

Controls Limited

(PRICOL)

• Established in 1974 and headquartered in Coimbatore, Premier‟s products include parts for

motorcycles, cars, trucks and buses, tractors, fleet management solutions and sintered components;

it has about 53 per cent share in the automotive instruments market.

• It has seven factories at various locations including Coimbatore, Uttarakhand, Gurgaon and Pune

with 50 product offerings, 2,000 product variants and 4,600 employees. The company has ISO 9001

certification since 1993 and QS 9000 since 2001.

Nissan Motors India

Private Limited (NMIPL)

• NMIPL was incorporated in 2005 as a 100 per cent subsidiary of Nissan Motor Co, Japan. The

Nissan Teana and Nissan Xtrail were its first products in the Indian market.

• The company has inaugurated a manufacturing capacity of 200,000 cars at its facilities in Chennai

and is investing about US$ 950 million along with Renault.

Renault-Nissan

• The Renault-Nissan joint venture was established in 1999. Its factory at Orgadam near Chennai has

come up and has started producing vehicles.

• The greenfield plant will have facilities to produce “A” segment cars and light commercial vehicles

(LCVs).

• Renault, Nissan Motor Co and their Indian partner are planning to launch an ultra low-cost car in

India in 2012.

Hindustan Motors (HM)• HM had a revenue of US$ 122 million during 2009-2010. The company has a plant at Thiruvallur for

manufacturing “Mitsubishi Lancer” cars in technical collaboration with Mitsubishi Motors, Japan.

Brands produced include Ambassador, Lancer, Montero, Pajero and RTV.



http://www.caloffroad.com.au/products/images/LOGOS/web Nissan logo 1 400x342.jpg

64

Simpson and Company

Limited

• Established in 1840, Simpson and Company is a pioneer in India‟s transport industry; it is

headquartered in Chennai.

• It manufactures agricultural, industrial, vehicular and marine engine spare parts.

Tatra Vectra Motors

Limited (TVML)

• Formerly known as TVML, it is a joint venture between Tatra a.s. of the Czech Republic (a part of

Terex corporation, USA) and the Vectra group, a UK based NRI company.

• Products manufactured include dumpers, tractors, chassis and engines; the manufacturing plant is

located at Hosur in Tamil Nadu.

Royal Enfield • Royal Enfield is a part of the Eicher Group, which is involved in manufacturing and marketing of

trucks and buses, motorcycles, automotive gears and components.

• It has a manufacturing unit at Tiruvottiyur near Chennai; the company has a monthly sales of about

4,500 to 5,000 units.

• The company plans to invest US$ 14 million to double its Chennai plant capacity from 50,000 units

to 1 million units by 2013.

Daimler India Commercial

Vehicles Private Limited

• It is a part of Daimler AG, the world‟s largest truck-maker by sales and has been assembling its

Actros trucks and buses at the Pune plant.

• The Indian unit of Daimler has built the Mitsubishi Fuso Canter truck at a factory located at

Chennai. The company purchased Hero Group's 40 per cent stake in the joint venture.




http://www.royalenfield.com/default.aspx

65

Sona Koyo Steering Systems

(SKSSL)

• Established in 1985, SKSSL is a flagship company of the Sona Group, one of the largest

manufacturers of steering systems for the passenger car and utility vehicle market in India.

• It has16 factories in India, three in Germany and one in the US. Plants are located at Chennai in

Tamil Nadu and Dharuhera in Haryana.

Saint-Gobain Sekurit India

Limited

• Saint-Gobain supplies automotive glazing and modular components for the global vehicle

manufacturing segment and the replacement market.

• It has presence in 22 countries, with 45 per cent market share in the European market.

• It has two manufacturing facilities at Pune (Chakan and Bhosari) and a new facility at

Sriperumbudur, near Chennai.

BMW • The German luxury car maker has a manufacturing plant at Chennai.

• The BMW-3 Series and BMW-5 series are manufactured at the plant. The MMW- X1 would be

launched towards the end of 2010.




http://im.in.com/connect/images/profile/b_profile4/Saint-Gobain_Sekurit_300.jpg

66

Engineering

• Tamil Nadu has a strong engineering base, which is concentrated in Chennai, Coimbatore and Salem.

• Exports of engineering products from Tamil Nadu were worth US$ 340 million in 2009.

• The state has network of nearly 3,000 engineering units, employing over 250,000 skilled workforce, making high-quality inputs including castings and forgings and a wide variety of ancillary products.

Key players

• Amalgamations Group

• BHEL

• Caterpillar India Private Limited

• Murugappa Group

• LMW

• Sanmar Group

• TVS Group

• Greaves Cotton Limited

• Titan Industries

• Saint Gobain Glass India Limited



67

Engineering – company profiles … (1/3)

Amalgamations Group • It is one of the largest engineering conglomerates with headquarters in Chennai.

• The group comprises over 43 companies, 27 manufacturing plants and a workforce of more than

15,000. The group‟s primary focus is engineering and manufactures products for various sectors such as

farm mechanisation, automotive components, diesel prime movers, light and general engineering.

Bharat Heavy

Electricals Limited

(BHEL)

• Established in the late 1950s, BHEL is the largest engineering and manufacturing enterprise in India in

the energy-related infrastructure sector.

• Its principal activities are to manufacture and distribute electrical, electronic, mechanical and nuclear

power equipment.

• BHEL has a wide network of 14 manufacturing divisions, four power sector regional centres, over 100

project sites, eight service centres and 18 regional offices.

• BHEL‟s plants are located at Ranipet and Thiruchirappalli. China's Tebian Electric Apparatus Stock Co

Limited (TBEA) and BHEL are in talks to jointly manufacture equipment in India.

Caterpillar India

Private Limited

• It is a wholly owned subsidiary of Caterpillar Inc, which is headquartered at Illinois, USA.

• The company manufactures a range of earthmoving equipment comprising dumpers, front-end loaders,

backhoe loaders, crawler tractors and hydraulic excavators; it has a plant at Melnallathur, Thiruvallur

district.



68

Murugappa Group • A US$ 3 billion conglomerate and headquartered in Chennai, the group has interests in engineering,

abrasives, sanitary ware, fertilisers, finance, bio-products and plantations. With 29 limited

companies spread across 13 states in India, the Murugappa Group is one of India‟s oldest business

houses. Some of the group companies include Carborundum Universal Limited, Cholamandalam

Investment & Finance Company Limited, Coromandel Fertilizers Limited, EID Parry (India) Limited,

Godavari Fertilizers & Chemicals Limited, Parry Agro Industries Ltd and Tube Investment of India

Limited.

Lakshmi Machine Works

(LMW)

• Based at Coimbatore, the company is a leading textile machinery manufacturer in India and one

amongst the three companies in the world to produce the entire range of spinning machinery. It

caters to around 60 per cent of the domestic market and has emerged as the leader in the export

of textile machinery. The company has diversified into computerised numerically controlled (CNC)

machine tools and, is a brand leader in manufacturing customised products.

Sanmar Group • Headquartered in Chennai, the company has set benchmarks for global partnerships in engineering,

chloro-chemicals, specialty chemicals and life insurance. The group also has a presence in shipping

and software.




69

TVS Group • Established in 1911 at Madurai, Tamil Nadu, TVS is India‟s leading supplier of automotive components

and one of the leading business conglomerates.

• The group comprises over 29 companies that operate in diverse fields such as automotive component

manufacturing, automotive dealerships and electronics. The group had a turnover of over US$ 4 billion

in 2009 and is one of the large manufacturers of automotive components in the country, with a

workforce of over 25,000.

• It reported sales of 119,000 units in December 2009 against 89,285 units a year ago. TVS Motors,

Brakes India, Lucas TVS, Sundram Fasteners and Wheels India are some of the major subsidiaries of

the group.

Greaves Cotton

Limited

• Established in 1859, Greaves Cotton had revenue of US$ 284 million in 2008-09; its business divisions

include agricultural equipments, automotive, auxiliary power, construction equipment and industrial

engines.

• Greaves manufactures lightweight petrol, diesel and kerosene engines for the agricultural sector from

its unit in Chennai. The company‟s new manufacturing facility for agro-equipment at Gummidipoondi,

Tamil Nadu is the fourth unit of the company in Gummidipoondi.

Titan Industries• Established in 1984 as a joint venture between the Tata Group and the TIDCO, the company is the

world‟s fifth largest integrated watch manufacturer. It has a plant at Hosur in Tamil Nadu and

produces over 11 million watches per annum, has a customer base of over 100 million. Its products

also include jewellery, eyewear and precision engineering.

Saint Gobain Glass India

Limited (SGGI) • Commenced production in 2000 as a100 per cent subsidiary of Saint-Gobain France.

• Manufactures and markets float glass and mirrors from its plant near Chennai.




http://www.greavescotton.com/Main/index.aspx

70

IT and ITeS … (1/3)

• Tamil Nadu has emerged as a centre for IT investments.

• The portfolio consists of application and system software, which has the highest share of around 70 per cent; ITeS and business process outsourcing (BPO) with 13 per cent; communication software, VLSI design and web solutions with a share of 8 per cent; IT consultancy with a contribution of 6 per cent; and product development with a contribution of 3 per cent.

• Tamil Nadu has 22 approved IT Parks. The TIDEL Park in Chennai is spread over 1.3 million sq ft. It is the largest IT facility in India promoted by TIDCO and ELCOT.

• A TIDEL Park in Coimbatore has started functioning from February 2010.

Key players

• Cognizant Technology Solutions (CTS)

• Computer Associates

• Steria India

• Polaris Software Lab Limited

• Mahindra Satyam

• Tata Consultancy Services

• Infosys Technologies

• CSC

• i-Gate Global Solutions Limited

• Patni Computer Systems

• Ajuba Solutions (India) Limited

• Zylog Systems Limited

• HCL Technologies

• Data Software Research Company

Private Limited (DSRCL)

• Virtusa Corporation

• Teledata Informatics



71


Software exports in Tamil Nadu

(US$ billion)

• The number of software units in Tamil Nadu has increased from 1,114 in 2004-05 to 1,683 in 2008-09.

• Software exports from Tamil Nadu have increased from US$ 3.0 billion in 2005-06 to US$ 8.9 billion in 2009-2010, registering a CAGR of 31.2 per cent.

• The number of IT and ITeS SEZs in Tamil Nadu has grown from 12 in 2006-07 to 52 in 2008-09.

Source: Software Technology Parks of India, Chennai


3.0

4.9

7.18.0

8.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2005-06 2006-07 2007-08 2008-09 2009-10


72

• STPI Chennai was established in 1995. It has

established its sub-centres at Trichy, Madurai,

Tirunelveli, Coimbatore and Pondicherry.

• A majority of software exports from Tamil

Nadu relate to application software.

Software exports from Tamil Nadu and Pondicherry

Source: Software Technology Parks of India, Chennai



41%

1%

6%9%7%

1%

1%

1%

2%1%

30%

Application Software

Engineering Software

BPO

Product Development

System Software

Medical Transcription

Call Centre

E-Publishing

Data Entry

Onsite Consultancy

Others


73

IT and ITeS – company profiles … (1/4)

Cognizant Technology

Solutions (CTS)

• Founded in Chennai as a captive arm of Dun & Bradstreet with headquarters in the US and

operations in India, Cognizant has over 50 development centres and 25 regional sales offices,

globally. Its services include BPO services, application and IT infrastructure services and business

consulting. CTS has an office in Chennai.

Computer Associates • Founded in 1994 in Chennai, the company employs over 40,000 people and has global delivery

centres in Asia, Europe and North America.

• The company has SEI CMMi Level 5, ISO 9001 and P-CMM Level 5 certifications.

Steria India • Steria India, the Indian subsidiary of Steria, a European IT services company is operating since 1992

in India; provides IT-driven business services.

• The company has over 5,000 employees in India.

• Steria has a campus at Chennai in Kelambakkam (Kancheepuram district).

• Steria acquired Xansa, a business and technology consulting, IT implementation, IT outsourcing and

BPO company in October 2007.

Polaris Software Lab

Limited

• One of India‟s leading solutions and service providers, Polaris services the banking, financial services

and insurance sectors; it is headquartered in Chennai.

• Polaris is the world‟s first CMMi Level 5 certified company.

CMMi: Capability Maturity Model Integrated



74

Mahindra Satyam • Formerly, Satyam Computers, Mahindra Satyam was established in 1987 and has its global

headquarters at Hyderabad and several offices in 38 countries including India.

• The company provides software solutions to over 370 customers including four of the top ten

electronics and electrical equipment manufacturers, three of the top ten in the aerospace and

defence companies, two of the top five chemical manufacturers and four of the top five networking

and communications equipment manufacturers; has five offices in Chennai.

Tata Consultancy Services

(TCS)

• A company of the TATA group of India, TCS is a well-recognised global service provider for a wide

range of IT solutions including, consulting, BPO, engineering services and IT infrastructure.

• The company has offices across the world at more than 40 countries including 78 locations in India;

has offices in Tamil Nadu at Chennai and Thiruchirappalli.

Infosys Technologies • Infosys was started in 1981; it is a leader in IT and consulting with revenue of over US$ 4 billion;

has a global footprint with over 50 offices and development centres in India, China, Australia, the

Czech Republic, Poland, the UK, Canada and Japan.

• The company has two offices in Chennai.




75

CSC • A US based company, since 1991, CSC has expanded its India operations to productively respond to the needs of their customers, worldwide.

• Acquisitions like that of Covansys and expansion activities have increased CSC‟s development and delivery centres to seven locations in the country including Chennai.

• In India, the company offers to clients worldwide, high-value technology solutions including applications development and product support, infrastructure and BPO services.

iGATE Global Solutions

Limited

• iGATE is an Indian company and an ITeS, consulting and BPO services provider.

• Registered in the US, iGATE has 34 offices across 16 countries.

• The company has delivery centres in the US, the UK, Canada, China, Malaysia and India.

• In Tamil Nadu, it has an office at Chennai.

Patni Computer Systems • Patni Computer Systems is one of the leading global providers of IT services and business solutions to global clients.

• Of the total 22 global delivery centres, one is located at Chennai.

Ajuba Solutions (India)

Limited

• Ajuba is a global provider of healthcare-revenue-cycle outsourcing services to the healthcare industry.

• Ajuba is headquartered in Charlotte, North Carolina and has additional operational centres in Michigan, Illinois and Chennai.

Zylog Systems Limited • Zylog is an ISO 9001 certified provider of onshore, offshore and near-shore technology solutions and services to enterprises and technology companies across the world.

• It is based in Chennai with offices at Mumbai, New Delhi and Singapore.




http://www.igate.com/about_logo.html

76

HCL Technologies • Incorporated in 1976, HCL is a leading global technology and IT enterprise with annual

revenues of US$ 5 billion; the company‟s operations span 26 countries. It has delivery

facilities in the US, the UK, Finland, Poland, Puerto Rico, Brazil, China, Malaysia, Singapore,

Australia, Czech and India.

• In India, the company has offices in 170 cities and 500 points of presence reaching 4,000

towns. In Tamil Nadu, HCL has an office in Chennai.

Data Software Research

Company Private Limited

(DSRCL)• DSRCL is a full service, full life-cycle management and IT consulting firm.

• It is headquartered in Chennai and has offices in the US, the UK and Singapore.

Virtusa Corporation • Founded in 1996 and headquartered in Massachusetts, the company has offices and

technology centres throughout the US, Europe and Asia.

• There are two offices in Chennai.

Teledata Informatics • With a registered office and an off-shore development centre based in Chennai, Teledata

Informatics provides enterprise-wide solutions in the areas of software solutions and

services, networking and communications, total business outsourcing (TBO).

• It also manufactures personal computer and distributes hardware.




http://images.google.co.in/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/8/8f/DSRC_logo.png&imgrefurl=http://en.wikipedia.org/wiki/Data_Software_Research_Company&usg=__K8gHf87ksaM2Ig0cngf-cS0p_g8=&h=100&w=100&sz=6&hl=en&start=9&tbnid=DaOyKIkbqZ-eDM:&tbnh=82&tbnw=82&prev=/images?q=Data+Software+Research+Company&gbv=2&hl=en&safe=active

http://aurat.in/news/wp-content/uploads/2009/04/hcl_logo_blue.jpg

77

Cement

• Tamil Nadu is a leading cement manufacturer in the country, ranking fourth in cement production.

• The state had a cement production capacity of 18.23 million tonnes per annum (MTPA) in 2007-08, registering a growth of 5.5 per cent over the previous year.

• In 2007-08, the cement production in the state was 17.92 MTPA against 16.48 MTPA during the previous year.

• The state reported a cement consumption of 14.46 MTPA, and cement and clinker exports of 0.01 MTPA in 2007-08.

• The production of ready-mix concrete is a major activity of the industry in the state.

Key players

• ACC

• Madras Cements

• India Cements

• Chettinad Cements Corporation

• Tamil Nadu Cements Corporation

• Dalmia Cements

• Grasim Cements



78

Cement – company profiles … (1/2)

ACC • ACC is the largest cement manufacturer in the country with 12 per cent market share and 22.6

MTPA capacity.

• The company invested around US$ 400 million in 2008-09 and plans to invest US$ 350 million in

2010-11 for capacity expansion.

Madras Cements • A flagship company of the Ramco Group, the company has an installed capacity of 10 MTPA.

• It has five cement factories and over 2,400 employees. The company has two facilities in Tamil

Nadu.

India Cements • India Cements is the largest producer of cement in South India. In 2009-2010, total clinker

production was 7.5 million tonnes, while total cement production was 9.5 million tonnes.

• It has three plants in Tamil Nadu and four in Andhra Pradesh, which together, cater to all major

markets in South India and Maharashtra.

• The company plans to invest US$ 104 billion to set up two thermal power plants in Tamil Nadu

and Andhra Pradesh.

Chettinad Cements

Corporation

• Established in 1962, the company has plants at Puliyur, Karur district, and Karikalli, Dindigul

district.

• The Karur plant has an installed capacity of 0.6 MTPA; the Karikalli plant has an installed capacity

of 1.2 MTPA and the Puliyur plant has an installed capacity of 2.5 MTPA.

• It plans to expand the capacity to 13 million metric tonnes (MMT) inclusive of its yet-to-take-off

green field plant in Gulbarga in another four years from its capacity of 7.5 MMT.



79

Tamil Nadu Cements

Corporation Limited

(TANCEM)

• TANCEM is a wholly-owned Government of Tamil Nadu undertaking and has established

business since April 1976.

• TANCEM reported a revenue of over US$ 50 million during 2009. Products include cement,

asbestos and pipes.

• Its plants are located at Alangulam and Ariyalur.

Dalmia Cements • Established in 1939, Dalmia Cement manufactures super-specialty cements.

• The company also manufactures sugar. Its factories in Tamil Nadu are located at Dalmiapuram

near Trichy and Ariyalur.

Grasim Cements • Grasim acquired Dharani Cements (since merged with the company) in April 1998.

• The company has a cement plant at Ariyalur, Tamil Nadu. In April 2000, a state-of-the-art

cement plant, among the most modern in Asia, was commissioned at Reddipalayam, Tamil

Nadu.

• This unit has a capacity of 1.16 MTPA.

Cement – company profiles … (2/2)



80

Banking and financial services and company profiles

• Chennai is a key financial centre in South India with major Indian financial institutions and foreign banks having a strong presence, there.

• Several banks have their back office operations in Chennai.

ABN Amro Central Enterprise Services

Private Limited (ACES)

• The Dutch bank set up its BPO division, the Global Support Centre, in Chennai in

2002. It has achieved growth in cash lockbox (700 clients) and international netting (10

clients). The centre provides both banking and non-banking services.

• ABN Amro Holding was acquired by a consortium of UK's Royal Bank of Scotland

Group PLC (RBS), Fortis Holding and Spain's Banco Santander SA (STD), in 2007.

Scope International • Scope is a wholly-owned subsidiary of Standard Chartered Bank, UK. The company is

based in Chennai and has operations in shared services centres.

• It has grown to over 7,000 employees servicing 70 countries in the Standard

Chartered Group within a span of one year.

World Bank • Commenced its BPO operations at Chennai in 2001 with an initial workforce of 80.

• Many of the high value-added back office activities of the bank are now based in

Chennai instead of Washington.



81

Drugs and pharmaceuticals

Key players

• Orchid Chemicals & Pharmaceuticals

• Shasun Chemicals and Drugs

• IDPL (Tamil Nadu) Limited

• Medopharm Pharmaceuticals

• Fourrts (India) Laboratories Private Limited

• Tablets (India) Limited

• Malladi Drugs and Pharmaceuticals

• TTK Pharma

• Sun Pharmaceutical Industries Limited

• Tamil Nadu is the fourth-largest pharmaceutical producing state in the country, next to Maharashtra, Gujarat and Andhra Pradesh.

• Tamil Nadu and Pondicherry have companies producing mainly formulations, although there are some bulk drug manufacturers too.



82

Drugs and pharmaceuticals – company profiles … (1/2)

Orchid Chemicals and

Pharmaceuticals• Established in July 1992 as a 100 per cent export-oriented unit ( EOU). The company

employs over 4,200 people, of which over 700 are scientists, technologists and other

professionals.

• Has two manufacturing sites at Alathur, Chennai and Aurangabad, and three

manufacturing sites for dosage forms (at Irungattukottai and Alathur), besides two

R&D centres (at Sholinganallur and Irungattukottai).

Shasun Chemicals and Drugs• Incorporated in 1976, it is headquartered in Chennai with a multi-product production

facility at Cuddalore.

• Manufactures active pharmaceutical ingredients (APIs), their intermediates and enteric

coating excipients and has a significant market presence in key generics.

Indian Drugs and Pharmaceuticals

Limited (IDPL)• Situated at Nandambakkam, on the Chennai-Bangalore Poonamallee high road; initially

commissioned in 1965 predominantly as an engineering based company to

manufacture surgical instruments.

• It has a large production capacity for manufacturing of formulations like tablets (305

million nos.), capsules (10 million), syrups (200 kilo litres) and injections (30 million).

Medopharm

Pharmaceuticals

• Established in 1970, the company has registered office in Chennai; its operations span

over 60 countries worldwide.

• Medopharm manufactures pharmaceutical formulations.

Fourrts (India) Laboratories Private

Limited• Established in 1977 at Chennai. Fourrts products are spread all over India and over

more than 30 countries around the world.

• Divisions include premiere division, specialist division and herbo-minerals division.



83

Tablets (India) Limited • Tablets India manufacturers pharmaceuticals and nutraceutical formulations. Its head office and

plant located at Chennai.

• The company‟s products include vital therapeutic medicines and the probiotic segment.

• Its products are exported to over 36 countries.

Malladi Drugs and

Pharmaceuticals• Maladi Drugs is based in Chennai. The company is a leading manufacturer of APIs in the cough

and cold segment along with other therapeutic segments such as anti-histamines, anti-

convulsants, anti-depressants and anxiolytics (CNS).

• It markets products in over 60 countries.

TTK Pharma• A part of the TTK Group of companies; TTK Healthcare's pharmaceuticals unit is based in

Chennai with four main divisions: ethical products, modern medicine, Indian medicine and

VENTURA. The company manufactures pharmaceutical products including calcium supplements

and drugs for delivery care, pain management, male fertility, and cardiac care.

Sun Pharmaceutical

Industries Limited• Established in 1983, the company manufactures specialty pharmaceuticals and APIs. The company

has 17 manufacturing plants in three continents.

• It has a plant in the Kancheepuram district of Tamil Nadu.

Drugs and pharmaceuticals – company profiles … (2/2)



http://www.malladi.co.in/default.htm

84

Major projects being implemented

Project name PromoterCost

(US$ million)Industry Project ownership

Chennai metro rail project Chennai Metro Rail 3,173.9 Railways State Government

IT SEZ (Perungalathur)Shriram Properties and

Infrastructure2,698.7 SEZ Private (Indian)

Jayamkondam mine-cum-thermal

power plant

Neyveli Lignite

Corporation1,467.4 Power Central Government

Integrated Township (Coimbatore),

Phase-IRakindo Developers 1,304.3 Real estate Private (Indian)

Coal-based power plant

(Thiruvallur)

NTPC Tamil Nadu

Energy Co1,173.9 Power

Central and State

Government

Coal-based power (Melamaruthur) Coastal Energen 978.3 Power Private (foreign)

Passenger car (Oragadam)Renault Nissan

Automotive India978.3 Transport Private (foreign)

Clinker unit ACC 400.0 Cement Private (Indian)

Maritime University (Chennai) Ministry of Shipping 173.9 Shipping Central Government

Mini Tidel Park (Coimbatore)Electronics Corporation

of Tamil Nadu80.4 IT park State Government

Medical Technology Park Aloko Company 55.6Medical Technology

ParkPrivate (Indian)

Mini-cement (Kagithapuram)Tamil Nadu Newsprint

& Papers Limited21.7 Cement State Government

Source: projectstoday.com



85

Key projects being planned

Project name PromoterCost

(US$ million)Industry Project ownership

Outer harbour (Tuticorin) Tuticorin Port Trust 945.8 Shipping Central Government

Solar-based energy power

plant

Alpha Omega Science &

Wind Technologies 177.8Solar-based power

plantPrivate (Indian)

Road up-gradation

(Tindivanam-Krishnagiri) NHAI 163.8 Roadways Central Government

Road up-gradation NHAI 78.7 Roadways Central Government

Storm-water drains (Otteri

nullah), JNNURMCorporation of Chennai 39.3

Water, sewage and

effluent treatmentGovernment local body

Residential-cum-commercial

complex

PBEL Property

Developers39.1 Real estate Private (Indian)

Aluminium Fluoride

(Sivaganga)Sterlite Industries 21.7 Inorganic chemicals Sterlite Group

Milk powder

(Thiruvannamalai)

Tamil Nadu Co-op. Milk

Producers' Federation21.7 Dairy products Cooperative sector

Mineral products processing

unitAnabond Tantalum 6.3

Tantalum metal

powderPrivate (Indian)

Source: projectstoday.comNHAI: National Highway Authority of India



86

Contents








87

Key approvals required

Approvals and clearances required Departments to be consulted Estimated time taken (days)

Incorporation of the company Registrar of Companies

Single-window clearance guidance

(state‟s single-window clearance

facility) clears investment

proposals in 30 days on an

average. The single-window

obtains all approvals necessary for

the investment proposal within the

aforementioned time

Registration, Industrial Entrepreneurs

Memorandum (IEM), Industrial licencesDistrict Industry Centre

Allotment of landTamil Nadu Department of Industries/State Industrial

Development Corporation

Permission for land use

Tamil Nadu Department of Industries/Tamil Nadu

Industrial Development Corporation, Department of

Town and Country Planning

Site environmental approvalsTamil Nadu Pollution Control Board (TNPCB) and

Union Ministry of Environment and Forests

No-objection certificate and consent

under water and pollution control actsTamil Nadu Pollution Control Board

Approval of construction activity and

building planDepartment of Town and Country Planning (DTCP)

Sanction of power Tamil Nadu Electricity Board (TNEB)

Registration under states sales tax act

and central and state excise acts

Sales tax department, Central and state excise

departments

DOING BUSINESS IN TAMIL NADU


88

Cost of doing business in Tamil Nadu

Cost parameter Cost estimate Source

Land (per sq m) US$ 10 to US$ 100 Average cost at various industrial parks in

Tamil Nadu

Hotel costs

(per room night)US$ 50 to US$ 150 Leading hotels in the state

Office space rent

(per sq ft per month)US$ 0.8 to US$ 1.5 Industry sources

Residential space

(2,000 sq ft house)

US$ 200 to US$ 550 per monthIndustry sources

Power (per kWh) Commercial and industrial: US 10 cents TNEB

Water (per 1,000 litres) Commercial and industrial: US 30 cents Tamil Nadu Water Supply and Drainage

Board

Labour cost in Tamil Nadu

Industry Category of workersMinimum wages

(US$ per day)

Agriculture - 2.0

Construction of roads

and buildingUn-skilled 2.6

Skilled 2.9

TransportUn-skilled 2.0

Skilled 2.8

IndustriesUn-skilled 3.0

Skilled 3.3

Source: Labour Department, Government of Tamil Nadu



89

Two-tier single-window mechanism (SWM)

SWM structure inTamil Nadu

State-level Industrial

Promotion Board

Under the chairmanship of

Chief Minister

of Tamil Nadu

Chief Secretary

to Government

of Tamil Nadu

Tamil Nadu

Industrial

Guidance &

Export

Promotion

Bureau

(Guidance

Bureau)

Nodal agency

Project approvals

authority



90

• Single-window clearance mechanism established to avoid procedural delays and accord all pre-project clearances at the state government level:

• Project Approvals Authority (PAA) under the Chief Secretary to government to monitor and hasten projects with investments less than US$ 0.02 billion.

• State-level Investment Promotion Board (SIPB) under the chairmanship of the Chief Minister of Tamil Nadu to monitor and expedite all mega projects exceeding US$ 0.02 billion.

• Common application form (CAF): The Government of Tamil Nadu has introduced a CAF to be filled and filed by investors with the Documentation and Clearance Center (DCC) in the Guidance Bureau.

SWM



91

Key investment promotion offices … (1/2)

Tamil Nadu Industrial Development

Corporation Limited (TIDCO)

Established in 1965 as a Government of Tamil Nadu enterprise to promote large and

medium scale industries in Tamil Nadu. It focuses on promoting infrastructure projects,

industrial parks and special economic zones.

State Industries Promotion

Corporation of Tamil Nadu

(SIPCOT)

Focuses on developing, marketing and maintaining industrial complexes/parks and growth

centres, and implementing infrastructure development schemes.

Tamil Nadu Industrial Investment

Corporation Limited (TIIC)

Provides financial assistance by way of term loans for purchase of land, plant and

machinery, and construction of buildings for setting up of new industrial units as well as

for expansion, modernisation and diversification of existing units; also extends term loans

to the service sector in the state.

Tamil Nadu Urban Development

Fund (TNUDF)

Provides project advisory, financial advisory and consultancy services to various urban

local bodies (ULBs) through its fund manager, TNUIFSL.



92

Tamil Nadu Urban Finance

Infrastructure Development

Corporation (TUFIDCO)

Extends financial assistance to urban infrastructure schemes in Tamil Nadu.

Electronics Corporation of Tamil Nadu

Limited (ELCOT)

Nodal agency for information and communication technology projects for the

Government of Tamil Nadu. It focuses on three broad areas, namely, IT promotion for

the state of Tamil Nadu, IT procurement for the Government of Tamil Nadu and e-

governance excellence within Tamil Nadu.

Tamil Nadu Small Industries

Development Corporation

(TANSIDCO)

TANSIDCO, an undertaking of the Government of Tamil Nadu, plays a catalytic role in

the promotion and development of small scale industries and in the speedy setting up

of industries throughout Tamil Nadu.

Key investment promotion offices … (2/2)



93

Contact list … (1/2)

Key agency Contact information

Tamil Nadu Industrial Development

Corporation Limited (TIDCO)

19-A, Rukmini Lakshmipathy Road,

Egmore, Chennai-600 008

Phone: 91-44-2855 4421, 2855 3710

E-mail: [email protected]

Website: www.tidco.com

State Industries Promotion Corporation of

Tamil Nadu (SIPCOT)

19-A, Rukmini Lakshmipathy Road,

Egmore, Chennai-600 008

Phone: 91-44-2855 4787

Fax: 91-44-2851 3978


Website: www.sipcot.com

Tamil Nadu Industrial Investment

Corporation Limited (TIIC)

New no: 692, Anna Salai, Nandanam,

Chennai-600035

Phone: 91-44-2433 1203

Fax: 91-44-2434 7209


Website: www.tiic.org



94

Contact list … (2/2)

Key agency Contact information

Tamil Nadu Urban Development Fund (TNUDF)

112, Theyagaraya Road, 1st Floor, Vairam Complex,

Theyagaraya Road, T.Nagar, Chennai - 600017

Phone: 91-44-2815 3104, 2815 3105

Fax: 91-44-2815 3106


Website: www.tnudf.com

Electronics Corporation of Tamil Nadu Limited

(ELCOT)

692, M.H.U. Complex, II Floor, Anna Salai,

Nandanam, Chennai-600 035

Phone: 91-44-6551 2330

Fax: 91-44-2433 0612

Website: www.elcot.in

Tamil Nadu Small Industries Development

Corporation (TANSIDCO)

Thiru Vi Ka Industrial Estate,

Chennai - 600 032

Phone: 91-44-2250 1461, 2250 1422, 2250 0289, 2250 0317

Fax: 91-44-2250 0792


Website: www.sidco.tn.gov.in



95

Annexure

Exchange rates

Average for the year


Year INR equivalent of one US$

2000 46.6

2001 48.3

2002 48.0

2003 45.6

2004 43.7

2005 45.2

2006 45.0

2007 42.0

2008 40.2

2009 46.0

2010 47.4


96

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