Rajasthan: Industrial Profile

Rajasthan A preferred Investment Destination

Mahindra World City

Shopping mall, Jaipur

Honda Siel Car Plant, Tapukara

Birla Institute of Technology, Pilani

Infosys

Golf Course, Central Park, Jaipur

Rajasthan: Snapshot Location: Proximity and well connected with major markets and production centres of Northern and Western markets of India Geographical area : Largest state with 10.4 % of India’s total area (0.34 million sq km) Population: 69 million (2011), 5.7% of India’s population Gross State Domestic Product (GSDP): INR 1961 billion (US $45 billion ) in 2010-11*, 4% of India’s GDP Growth rate: 7.6% average growth in GSDP over last 5 years Per Capita Income (PCI): INR 25616 (US $582) in 2010-11*, INR 36003 (US $818) for India Source: Economic Review of Rajasthan, 2010-11 * At 2004-05 constant prices, Exchange rate INR to US$ @44

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Government of Rajasthan www.rajasthan.gov.in

www.riico.co.in

Strategic Location • Close proximity to major markets and production hubs in northern and western India • Provides quick and low-cost access to key markets Haryana

Punjab

Delhi

Rajasthan

Gujarat

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Uttar Pradesh

Madhya Pradesh

Government of Rajasthan www.rajasthan.gov.in

www.riico.co.in

Growing Economy • GSDP estimated at INR 1961 billion (US $45 billion) in 2010-11 at constant prices, growing at 7.6% p.a over last 5 years • Per Capita Income in 2010-11 registering an increase of 8.3% over previous year at constant prices • Gross Fixed Capital Formation estimated at INR 622 billion (US $14 billion) in 2009-10 at current prices, an increase of 18.7% p.a over last 5 years • Index of Industrial Production estimated at 331* an increase of 8.8% p.a over last 3 years Source: Economic Review of Rajasthan, 2010-11

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*(Base 1993-94=100),

Government of Rajasthan www.rajasthan.gov.in

www.riico.co.in

Excellent Connectivity • Well connected by rail, road and air to the major markets in the country • State has three operational airports located at Jaipur, Jodhpur and Udaipur

• Direct flights to all the major cities in India including: Ahemdabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune, etc

• International air connectivity with direct flights to Dubai, Singapore, Sharjah, Abu Dhabi and Kuwait • Connected to international export markets via the ports of Jawaharlal Nehru Port in Mumbai and Kandla Port and Mundra Port in Gujarat through rail and road (NH8 and NH3) • Upcoming Delhi Mumbai Industrial Corridor (DMIC) will enhance high-speed access to ports and Northern and Western markets of India

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Government of Rajasthan www.rajasthan.gov.in

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Excellent Connectivity • Rajasthan has a total railway network spanning 5,854 kms,

approximately 70 per cent is covered by broad gauge • Rajasthan has the largest network of National Highways in

Northern India • State has 20 National Highways (NHs), 85 State Highways

• State to have India's first 4-lane elevated road-cum-metro track

in Jaipur • New 4 to 6-laned, 261 km expressway between Jaipur – Delhi Source: Rajasthan Economic Review 2009-10; Public Works Department, Govt of Rajasthan

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Government of Rajasthan www.rajasthan.gov.in

BITS Pilani

www.riico.co.in

Adequate Power Availability • Installed Capacity as on 30th June 2011: 9,304.18 MW • 97% villages have been electrified by the end of December,2009 under the Rural

Electrification Programme • Generation mix dominated by thermal power plants: 62% share • Reported demand and supply gap in power is only 1% • Expected to be a power surplus state by 2013-14 New capacity will be added as follows

Conventional sources Renewable sources

11th Five year plan (2011-2012)

12th Five year plan (2012-2017)

4.5 MW 1.2 MW

13.0 MW 3.0 MW BITS Pilani

Source: Economic Review of Rajasthan, 2010-11

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Government of Rajasthan www.rajasthan.gov.in

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Thrust on Green (Renewable) Energy •

In forefront in utilization of Wind and Solar Energy; new entrant in Biomass Power Generation

•

First Solar Park on 10,000 hectares announced

•

Rajasthan Renewable Energy Corporation playing a leading role to promote generation of non-conventional energy.

•

Strong policy framework with following policies in place:

•

•

Non Conventional Energy Policy

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Policy for Promoting Generation of Electricity from Biomass, 2010

•

Rajasthan Solar Energy Policy 2011

INR 540 million (US $12.3 million) of Financial Assistance provided to renewable energy generation in Rajasthan since 2007-08 (of which INR 270 million (US $6.1 million) has been received in 2010-11).

Source: Ministry of Power, Central Electricity Authority

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Government of Rajasthan www.rajasthan.gov.in

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Japanese Investment Zone at Neemrana (Alwar) • MoU between RIICO and JETRO in 2006 for joint promotion • Total area: 1167 acres • Total Land allotted: 324 acres • Total no. of units: 25 • No. of units in production: 11 • Investment likely to be catalyzed: INR 23.5 billion (US $0.53 billion) • Employment likely to be generated: 4950 persons

Units in production Nissin Brake India (P) Ltd.

ACI Mitsui Prime Advanced Composites P Ltd. TPR Auto Parts Manufacturing India (P) Ltd. Imasen Manufacturing India (P) Ltd., Daikin Air-conditioning India Pvt. Ltd Dainichi Color India (P) Ltd., Toyada Goesei India (P) Ltd., Mytex Polymer India Pvt. Ltd. Mikuni (India) Pvt. Ltd. Nippon Express (India) Pvt. Ltd. Beltecno India Pvt. Ltd.

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Government of Rajasthan www.rajasthan.gov.in

www.riico.co.in

Easy Availability of Skilled Manpower •

440,260 students enrolled for higher education in over 1100 colleges

•

No. of technical colleges have been growing at an average annual growth rate of 20% over last 2 years, with intake capacity growing at 40% Courses

No. of Institutes

Intake Capacity

ITI

849

101,723

Engineering

122

50,374

MBA

136

10,343

MCA

38

2,440

164

43,970

1,309

208,850

Polytechnic Total

•

Highest number of finance professionals from India, like CAs, ICWAs and CSs are from Rajasthan.

•

Ranked No.1 in Talent Sourcing and Employee Costs – Hewitt Associates

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Various incentives and schemes are in place to promote private investments Source: Department of College Education, Rajasthan; Higher Education – India, 2009, AICTE; Source: Directorate of Technical Education, Rajasthan

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Government of Rajasthan www.rajasthan.gov.in

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One of the Lowest Manpower Cost Cost of Software Analyst in US$ per month (3-5 yrs. Exp)

Rajasthan

576

Maharashtra

Cost of Engineers in US$ per month (Entry level)

Rajasthan

629

Haryana

Gujarat

678

Gujarat

189 222

Andhra Pradesh

244

727

Tamil Nadu

Maharashtra

282

Tamil Nadu

284

756

Punjab

822

Karnataka

844 0

200

400

600

800

Karnataka

1000

Source: Team Lease

Bureau of Investment Promotion

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Government of Rajasthan

www.rajasthan.gov.in

300 0

100

200

300

400

Rajasthan’s Dominant Position in Mineral Resources • 79 kinds of minerals, of which 58 are

being commercially exploited • Second highest cement producing state in India, - total capacity of 41 million tonnes per annum • Leading producer of cement grade lime stone and steel grade lime stone MINERAL

Reserves (million tones)

Metallic Copper Lead, Zinc & Silver Iron Ore Non Metallic SMS Grade Limestone Lignite

137.4 377.2 545.8 302.4 2180.1

MINERAL Majorminerals Wollastonite Jasper Zincconcentrate Fluorite Gypsum Asbestos Leadconcentrate RockPhosphate Ballclay Calcite Felspar Flaggylimestone Minorminerals Marble Soapstone Sandstone

% OF INDIA’S PRODUCTION 100 100 99 96 93 89 80 75 71 70 70 70 90 87 70

Source: Rajasthan Mineral Policy 2011; Raj Darpan, Official Web Portal of Government of Rajasthan

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Government of Rajasthan www.rajasthan.gov.in

www.riico.co.in

DFC set to be a Game Changer for Rajasthan • Dedicated Freight Corridor (DFC) - a 1483 km high axle rail system to be commissioned by 2016 • Proposed to connect J.N.Port ,Mumbai and ICD ( Inland Container Depot), Dadri near Delhi • DFC will provide high speed port connectivity to the north western hinterland •

Passes through six states - about 38% (553 km) length of DFC will pass through Rajasthan

•

Expected to triple industrial output in 5 years with easy accessibility to western and northern markets

• Present status : Land acquired, funds from Govt. of Japan arranged, laying of tracks to commenced by Oct 2011 Bureau of Investment Promotion

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Government of Rajasthan www.rajasthan.gov.in

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60% of Total Area of Rajasthan will Fall Under DMIC (22 districts)

KhushkheraNeemranaBhiwadi JaipurDausa KishangarhAjmer

PaliMarwar

RajsamandBhilwara

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Government of Rajasthan www.rajasthan.gov.in

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Automotive: Emerging Hub • Located between north - west region of India, which accounts for approx 57 per cent of automobile sales in the country • Part of NCR, an existing automotive and auto ancillaries manufacturing cluster • Developing into a key automotive hub with Bhiwadi, Neemrana and Pathredi in Alwar district host to over 100 functional units • Area developing: Jaipur–Delhi belt connected

by NH 8 • Special Auto & Engineering Zones developed in Pathredi Industrial Area and Bhiwadi • Tool Room & Training Centre planned over 10 acres to address availability of trained manpower

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Government of Rajasthan www.rajasthan.gov.in

Punjab Haryana Delhi Rajasthan

Madhya Pradesh

Gujarat

TAPUKA BHIWADA DI KAHARANI PATHREDI / CHOPANKI

NEEMRA NA

N H 8

Uttar Pradesh

ALWAR KHUSHKE DA

www.riico.co.in

Automotive: Strong Industrial Base OEMs Honda Siel Cars India Ltd. (HSCIL) Honda Motorcycle & Scooter India (HMSI) Ashok Leyland Eicher

Transmission and steering parts

Engines and parts HSCIL

OCAP

Federal Moghul Goetze

Hi-tech Gears Ltd.

Shriram Pistons and Rings Ltd.

Amson Automotive Ltd.

Bestex MM India Pvt. Ltd.

Ashoka Gears

Amtek

MICO Bosch

Continental Engines

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Suspension, brakes and tyres Nissin Brake India Pvt. Ltd. Horizon Industrial Products Balkrishna Industries Ltd. Chakradhali Wheels Pvt. Ltd

Government of Rajasthan www.rajasthan.gov.in

Electricals Havells India Ltd. Motherson Sumi Systems Ltd. Climate Systems India Ltd.

Visteon Automotive Systems

Others National Engineering Industries Ltd. Motherson Automotive Tech. & Engineering CNC automotive Toyota Gosei Caparo Fastners

www.riico.co.in

IT/ITeS: MWC SEZ • Dedicated 750 Acres; Corporate India’s largest planned IT centric development • Infosys inaugurated operations in Aug’08 in its 200 acres campus • evolve - Ready Built-up IT Park - 1.4 million Sq.ft. spread over 25 Acres • Deutsche Bank started operations in July’08 in ‘Evolve’, The Technology Park • EXL Services / MetLife have started

operations in ‘Evolve’

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Government of Rajasthan www.rajasthan.gov.in

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Solar Manufacturing: Rajasthan - A Beacon in India Strategic location and pipeline commitments of solar generation projects augur well for the solar manufacturing sector in Rajasthan

 250-300 sunny days in a year  Highest daily solar isolation: 5–6.5 kWh/m2  81% of the grid connected projects under NSM  Highest number of projects aggregating to 12 MW capacity under Rooftop & Small Solar Power Generation Programme (5% of total projects)  52% of projects for Off-grid PV & decentralized solar applications

……….offering great potential for solar component manufacturing Existing players

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Planned projects

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Government of Rajasthan www.rajasthan.gov.in

Potential sub suppliers

www.riico.co.in

Solar Manufacturing: Advantage Rajasthan Solar insolations - comparable to deserts of California, Nevada, Colorado and Arizona

Rajasthan is strategically located to access the domestic market

Rich mineral wealth: viz. silica, quartz, zinc, lead, etc.

+ +

+ +

Abundance of suitable land for solar equipment manufacturing: Upcoming park at near Jodhpur.

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Clearly articulated, progressive Solar Policy

Competitive manpower cost by 30-40%

+ + +

Significant potential of allied industries – Glass, mirror, Steel etc.

+

Adequate power supply

Upcoming DFC/DMIC could be a game changer for logistics

Government of Rajasthan www.rajasthan.gov.in

www.riico.co.in

+

Ceramics & Glass: Excellent Availability of Raw Material • Home to some of the largest ceramics, bone-china, manufacturing bricks, tiles, statues, insulators, porcelain units etc. located across the state but are concentrated in Jaipur, Bikaner, Bhilwara, Abu Road and Bhiwadi • Excellent availability of high quality clay and feldspar and of almost all minerals required for Ceramic and Glass industry.

• Produces more than 70% bone china crockery in the country • Leading producer of high clay accounting for 40% of India’s production • Major producer of several glass products including crockery, TV glass shells and laboratory glassware.

Source: Special Issue on CeraGlass 2010, the Catalyst, The Official Newsletter of RIICO

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Government of Rajasthan www.rajasthan.gov.in

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Ceramics & Glass: Strong Industrial Base • INR 50 billion (US$1.1 billion) of investment received by State Govt.

• Around 500 ceramic industries, covering Glass and Mineral Grinding units are operating successfully.

• Dedicated 750 acre Ceramic & Glass Zone developed by RIICO at Alwar • State has turned into a glass manufacturing hub, as several leading organizations have chosen Rajasthan for their operations.

Upcoming Player: Saint Gobain “Our Rajasthan project is one of the large investments of Saint Gobain in India in the coming decade. The State govt. has been very welcoming and cooperative right from the day the project was conceived. Our experience with BIP has been very positive.”

B. Santhanam, Managing Director Saint-Gobain Glass India Ltd. Source: Special Issue on CeraGlass 2010, the Catalyst, The Official Newsletter of RIICO

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Government of Rajasthan www.rajasthan.gov.in

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Dedicated Zones to Promote Thrust Sectors • 250 acres allotted to Apparel City at Tapukada Apparel City would provide employment to 1,00,000 persons of which 36000 would be direct employment.

• 750 acres of land reserved for Auto Zone at Tapukada & Khuskhera extensions.

• 750 acres of land reserve for Ceramic & Glass, 500 acres for Japanese Park and around 500 acres for Solar Equipment Manufactures Units at Giloth

Bureau of Investment Promotion

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Government of Rajasthan

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Apparel • Prominent Textile destination in India, produces varieties of fabric; contributes half of the India’s PV Suiting

• Major producer of printed and dyed fabric for fashion garment industry.

• Rajasthani print garments (Bagru and Sanganer), Kota Doria, Khadi Garments etc. have earned international recognition.

• More than 2000 Garment / Textile Handicraft including Made ups units

operational • Availability of variety of fabrics and trained manpower • Existence of Eco System for Garment industry Bureau of Investment Promotion

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Government of Rajasthan www.rajasthan.gov.in

www.riico.co.in

Gems & Jewellery • Biggest production centre of colored precious & semi-precious stones • Largest manufacturer of cut & polished diamonds • Around 90% of the emerald worldwide is cut in Jaipur • Around 95% of small diamonds are processed in Jaipur • Jaipur contributes more than 80% of total gems & jewellery exports from

India • Jaipur has 100 active exporters and 1500 sub-contractors • Provides employment to almost two lakh persons directly and indirectly • Infrastructure: RIICO has developed a special zone for Gems & Jewellery at the Export Promotion Industrial Park (EPIP) at Sitapura, Jaipur • Availability of skilled personnel: The state has Indian Institute of Gems & Jewellery in Jaipur located at Sitapura industrial area

BITS Pilani

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Government of Rajasthan www.rajasthan.gov.in

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Strong Law and Order and Peaceful Industrial Relations •

Ranked 1st for Law & Order situation amongst northern states in India by India Today in 2009

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Peaceful industrial relations with 3 percent of total man days lost in India

•

Ranked 3rd for Ease and Speed of starting a business in India by World Bank in Doing Business Survey of India 2009

•

Investment friendly climate and pro-business policies are in place

•

Political stability has translated into a peaceful law & order situation , favorable labour relations, and consistent thrust on progressive policy reforms

•

Single Window Clearance System enacted in 2010 to ensure time-bound clearances to investors

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Government of Rajasthan www.rajasthan.gov.in

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Key Policy Interventions Rajasthan has a large number of policies in place to promote investments in the State. Various investment promotion policies currently operation are: Rajasthan Industrial and Investment Promotion Policy 2010 Rajasthan Investment Promotion Scheme 2010 Rajasthan Solar Energy Policy 2011

Policy Initiatives

Policy to Promote Private Investment in Healthcare Facility 2011 Rajasthan Mineral Policy 2011 Policy for Promotion of Agro-Processing and Agri-Business 2010 Tourism Units Policy 2007 IT & ITeS Policy 2007

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Government of Rajasthan www.rajasthan.gov.in

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Effective Single Window Mechanism BIP, the State investment promotion agency, is the first point of contact for investors aiming to establish business in Rajasthan.

Bureau of Investment Promotion

Project Conceptualization

RESPECT

Project Implementation

Single Window Mechanism

The Govt. has enacted RESPECT (Rajasthan

Electronic single window clearance system is

Enterprises Single Point Enabling and

already in place.

Clearance Act) in 2011 towards simplifying the regulatory framework and reducing procedural requirements.

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Government of Rajasthan www.rajasthan.gov.in

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Thank You.

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Government of Rajasthan www.rajasthan.gov.in

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