MADHYA PRADESH - Business Opportunities in India ... Pradesh has rich mineral resources and has the largest reserves of diamond and copper in India. Besides, the state has significant

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MADHYA PRADESHApril 2010

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

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

MADHYA PRADESH April 2010

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Contents

Advantage Madhya Pradesh

State economy and socio-economic profile

Infrastructure status

State policies and incentives

Business opportunities

Doing business in Madhya Pradesh

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• Madhya Pradesh is located in Central India. The state covers area of 308,000 sq km and has population of around 60.3 million.

• Until November 2000, Madhya Pradesh was the largest state in India, when the state of Chhattisgarh was carved out of it for ease of administering a large state.

• The state, now, has 50 districts. Its administrative capital is Bhopal and its largest city is Indore. Other key cities are Gwalior, Jabalpur and Ujjain.

• Madhya Pradesh has two major rivers flowing through it: the Narmada and the Tapi.

Madhya Pradesh – State profile … (1/2)

Source: Maps of India

Madhya Pradesh April 2010ADVANTAGE MADHYA PRADESH

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• There are 11 agro-climatic conditions and a variety of soils available in the state to support cultivation of a wide range of crops.

• Around 31 per cent of the total area of the state is forestland which is over12 per cent of the total forest area of India.

• The most commonly spoken language of the state is Hindi. English and Marathi are the other languages used.

Madhya Pradesh – State profile … (2/2)



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Central location of the state

Policy incentive

Being centrally located, the state is accessible to key consumer markets andmajor cities such as Delhi (740 km*), Mumbai (780 km*), Kolkata (1,350 km*)and Chennai (1,430 km*). Because of this advantage, a large number ofconsumer goods companies have manufacturing bases in the state.

The state offers wide range of fiscal and policy incentives for businesses underthe Industrial Promotion Policy - 2004 & Action Plan (including the provisionsas amended in 2007). Additionally, the state has policies for theIT, biotechnology, tourism sectors and Special economic zones (SEZ).

Agricultural and forest resourcesAround 31 per cent of the state is under forest cover with abundant naturalresources. Favourable soil and climatic conditions have helped the state to bethe largest producer of coarse cereals, oilseeds and soybean in the country;the state has attracted a large number of agro-based industries because of itsagricultural products.

Advantage Madhya Pradesh … (1/2)


* From Bhopal


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Mineral resourcesMadhya Pradesh has rich mineral resources and has the largest reservesof diamond and copper in India. Besides, the state has significant reservesof coal, coal-bed methane, manganese and dolomite.

Large industrial baseThe state is manufacturing base for a number of large- and medium-scaleindustries from diverse sectors such as automobile and auto-components, cement, agro-processing, consumergoods, pharmaceuticals, etc. It also has a large pool of industrial labour.

Potential for tourismBecause of its forest cover, the state has immense potential fortourism, particularly, wild-life and adventure tourism, eco-tourism. It alsohas globally renowned locations of historical and religious significance.The state attracts large number of domestic and international tourists.

Advantage Madhya Pradesh … (2/2)



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Madhya Pradesh in figures … (1/2)

Parameter Madhya Pradesh All-states Source

Economy

GSDP as percentage of all states’ GSDP 3.8 100.0 CMIE, 2006-07, current prices

Average GSDP growth rate (%) 9.5 7.5 CMIE,1999-2000 to 2007-08

Per capita GSDP (US$) 519.3 998.1 CMIE, 2007-08

Physical infrastructure

Installed power capacity (MW) 4,773.9 98,996.4 Central Electricity Authority, as of March 2009

GSM cellular subscribers (No) 19,636,969 367,328,179 Cellular Operators Association of India, as of November 2009

Broadband subscribers (No) 168,951* 4,981,976 As of October 2008

National highway length (km) 4,670 70,548 Ministry of Road Transport & Highways, 2007-08

Airports (No) 5 133 Industry sources

Social indicators

Literacy rate (%) 63.7 64.8 Census of India, 2001

Birth rate (per 1,000 live birth) 28.5 23.3 Central Bureau of Health Intelligence, 2007


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Madhya Pradesh in figures … (2/2)

Parameter Madhya Pradesh All-states Source

Ease of doing business

FDI inflows (US$ billion)* 0.16 102.1 Department of Industrial Policy & Promotion, April 2000 to October 2009

Outstanding investments (US$ billion)

62.5 1,709.7 CMIE, as of December 2008

Industrial infrastructure

PPP projects (no) 39 460 www.pppindiadatabase.com

SEZs (No) 1 98 Functional as of August 2009, www.sezindia.nic.in

Parameter Madhya Pradesh Government

Policy support

Sectors with specific policies IT, biotechnology, SEZ, tourism

Availability of labour Large base of industrial labour available.

*Includes ChhattisgarhPPP: public-private partnership, SEZ: special economic zone


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Medium HighLow

Medium

High

IT and ITeS

Industry attractiveness matrix

*Factor advantage

Polic

y th

rust

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

Key industries with policy thrust and factor advantages

Manufacturing

TourismPharmaceutical

and Biotechnology

Minerals

Agro, forest-based industry

Consumer goods

TextileAuto and auto-

components


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Contents







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Socio-economic snapshot of Madhya Pradesh

Sources: website of Government of Madhya Pradesh (www.mp.gov.in), CMIE, Census 2001

Parameters Madhya Pradesh

Capital Bhopal

Geographical area (sq km) 308,000

Administrative districts (no) 50

Population density (persons per sq km) 196

Total population (million) 60.3

Male population (million) 31.4

Female population (million) 28.9

Decadal population growth rate (%) 24.3

Sex ratio (females per 1,000 males) 919

Literacy rate (%) 63.7

Male (%) 76.1

Female (%) 50.3

Average life expectancy (years) 57.7

Madhya Pradesh April 2010

STATE ECONOMY AND SOCIO-ECONOMIC PROFILE

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• At current prices, the gross state domestic product (GSDP) of Madhya Pradesh for 2007-08 was US$ 35.4 billion.

• Between1999-2000 and 2007-08, the average annual GSDP growth was 9.5 per cent.

• The growth in GSDP is, primarily, been due to growth in mining and quarrying and the services sectors.

Madhya Pradesh’s GSDP (US$ billion)

Source: CMIE

Madhya Pradesh’s GSDP

17.2 16.418.1 19.0

23.5 23.626.0

31.1

35.4

0

5

10

15

20

25

30

35

40

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

CAGR 9.5%



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• The net state domestic product (NSDP) of Madhya Pradesh was about US$ 30.7 billion in 2007-08.

• The average NSDP growth rate between 1999-2000 and 2007-08, was about 8.8 per cent.

Madhya Pradesh’s NSDP (US$ billion)

Source: CMIE

Madhya Pradesh’s NSDP

15.6 14.716.1 16.8

20.8 20.722.7

27.0

30.7

0

5

10

15

20

25

30

35

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

CAGR 8.8%



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The tertiary sector has an increasing share in Madhya Pradesh’seconomy

• In 2007-08, at US$ 16.6 billion, the tertiary sector contributed 53.5 per cent to the GSDP at current prices. It was followed by the primary sector, contributing US$ 10.9 billion (35.1 per cent), and the secondary sector’s contributing US$ 3.5 billion (11.4 per cent).

• The tertiary sector has also been the fastest growing at 12.9 per cent from 1999-2000 to 2007-08; followed by the primary and secondary sectors.

Source: CMIE

36.4% 35.1%

13.4% 11.4%

50.2% 53.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1999-00 2007-08

Primary Sector Secondary Sector Tertiary Sector

CAGR

7.5%

6.8%

12.9%

Percentage distribution of GSDP



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Per capita GSDP• The per capita GSDP of Madhya Pradesh increased almost 1.8 times from US$ 293 in 1999-2000 to US$ 519 in 2007-08.

• In 2007-08, the per capita GSDP grew at about 12 per cent over the previous year.

• Robust tertiary sector has helped Madhya Pradesh increase its average per capita GSDP by around 7.4 per cent between 1999-2000 and 2007-08.

(US$

)Source: CMIE

Per capita GSDP

293.1 273.9295.8 305.6

370.5 365.1394.2

463.4

519.3

0

100

200

300

400

500

600

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



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Key industries in Madhya Pradesh

• The natural resources including agro-based products, forest products and minerals; the state’s policy incentives and its central location have attracted major investments in the agro-products, consumer goods, drugs and pharmaceuticals, mines and minerals, manufacturing and textiles sectors.

• The State Government is keen to develop industrial infrastructure. The Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) and its subsidiary, Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (MPAKVN) are the key nodal agencies for industrial development in the state.

Key industries in Madhya Pradesh

• Auto and auto components

• Textile

• Cement

• Agro-based industries

• Forest-based industries

• Pharmaceuticals

• Mineral-based industries

• Manufacturing

• Tourism



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Madhya Pradesh is the among the largest producers of pulses, oilseeds and Soybean in the country

Crop Annual production* (‘000 tonnes)

Wheat 5,896.0

Soybean 5,001.0

Sugarcane 3,180.0

Rice 1,409.0

Cotton 658.0

Rapeseed and mustard 510.0

Arhar 292.0

• Wheat, soybean, sugarcane, rice, cotton, rapeseed, mustard and arhar are the major crops of the

state.

• In 2007-08, total production of the major crops of the state was around 17.0 million tonnes.

• Wheat, soybean and sugarcane, together, accounted for 83 per cent of the total production of the major crops.

• In 2006-07, Madhya Pradesh was the largest producer of pulses, oilseeds and soybean in the country.

*As of 2007-08Source: CMIE



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22%

3%

56%

6%

4%9%

Manufacturing

Mining

Electricity

Services

Irrigation

Construction

• According to the Reserve Bank of India, FDI inflows from April 2000 to October 2009 amounted to US$ 160 million.

• As of December 2008, of the total outstanding investments of US$ 62.5 billion. Electricity accounted for more than 50 per cent of the investments, followed by manufacturing, accounting for around 22 per cent of outstanding investments.

Investments and FDI inflows

Break-up of investments by sector

As of December 2008

Source: CMIE



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Contents







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• Madhya Pradesh has 17 National Highways in the state, measuring 4,670 km.

• The total road length in the state is around 72,000 km, of which around 60,000 km are surfaced. Madhya Pradesh also has 8,728 km of State Highways.

• The state has 31 public-private partnership (PPP) projects in the roads sector, at various stages of development.

• The state is well connected to the major cities of the country, consumer markets, and ports on the West-coast such as Kandla and Jawaharlal Nehru Port Trust.

Road network



INFRASTRUCTURE STATUS

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• Madhya Pradesh has around 5,900 km of railway lines passing through it.

• The railway network in Madhya Pradesh primarily falls under the West-Central Railways, which was formed in 2003 and is headquartered in Jabalpur. Chhattisgarh is the other state under the West-Central Railways. Part of the state is also covered by Central and Western Railways.

Railway network




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• Madhya Pradesh has five operational airports, one each at: Bhopal, Jabalpur, Gwalior, Indore and Khajuraho.

• Indore is the busiest airport in the state.

Airports

Domestic airport

INDORE BHOPAL

JABALPUR

GWALIOR

KHAJURAHO




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• As of March 2009, Madhya Pradesh had 2,558 telephone exchanges and 21.1 million telephone connections (wire-line and cellular).

• As of November 2009, there were 19.7 million GSM-cellular subscribers in the state.

• As of March 2009, tele-density (telephone connections per 100 persons) in Madhya Pradesh is 30.1.

• The total number of broadband users as of October 2008 was 168,951 (including Chhattisgarh).

Telecom

Major telecom companies in Madhya Pradesh

Bharat Sanchar

Nigam Limited (BSNL)

Bharti Airtel

Vodafone Essar

Idea Cellular

Reliance Communications

Tata Teleservices

Sources: Cellular Operators Association of India, company websitesGSM: Global System for Mobile communication

Telecom infrastructure in Madhya Pradesh

Parameter 2009 2008

No of telephone exchanges 2,558 2,686

No of telephone connections (million) 21.1 14.0

No of wire line telephone (million) 1.4 1.5

Tele-density (per 100 persons) 30.1 20.3

Sources: Department of Telecommunication, Government of India, Cellular Operators Association of India



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• As of March 2009, Madhya Pradesh had a total installed power generation capacity of 4,773.9 MW, which comprised 4,582.9 MW under state utilities and 191.0 MW under the private sector.

• The capacity owned by state utilities comprised about 61 per cent of coal-based power plants and 37 per cent of hydro electric plants; the balance was based on renewable energy sources.

• NTPC, the central-sector operator in the state, had plants of another 3,260 MW of thermal power generation in the state.

• An ultra-mega power plant (UMPP) is being constructed in Sasan, with an installed capacity of 3,950 MW.

Installed state and private capacity (MW)

Source: Central Electricity Authority

Power

3,008.0 3,100.0 3,236.6 3,323.8 3,795.4 3,971.9

4,484.0 4,773.9

0

1,000

2,000

3,000

4,000

5,000

6,000

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



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Urban infrastructure … (1/2)

• Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), 21 projects (of value US$ 443 million) have been sanctioned for urban centres such as Bhopal, Indore, Jabalpur and Ujjain.

• Some of the key projects are in sectors such as roads and flyovers, water supply, storm-water drainage, sewerage, solid-waste management and mass rapid transport systems.

• Projects of value US$ 3.0 million have been completed in Bhopal and Indore. Those were related to urban renewal and roads and flyovers.

• The Asian Development Bank (ADB) has funded16 projects for Bhopal in the areas of water supply, sewerage and sanitation, storm-water drainage and solid-waste management.



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Urban infrastructure … (2/2)

Water supply Sewerage system Solid-waste management Others

• The average per capita supply of water in major cities such as Indore is around 80 litres per day.

• Under the JNNRUM, cities are planned to achieve per capita water supply of 135 litres per day between 2015-2021.

• Six projects worth US$ 183 million have been sanctioned for water supply under the JNNURM.

• In cities such as Indore, around 50 per cent of the population is connected to sewage network.

• Under the JNNRUM, the entire population in the cities will be connected to sewage network.

• Three projects worth US$ 100 million have been sanctioned for sewage treatment under the JNNURM.

• Indore and Ujjain generate around 500 tonnes per day (tpd) and 160 tpd of solid-waste respectively.

• Under the JNNRUM, the entire solid-waste is expected to be collected and treated.

• A project worth US$ 9.4 million has been sanctioned.

• Two projects worth US$ 77.6 million have been sanctioned for improvement of drainage system.

• Six projects worth US$ 69.2 million have been sanctioned for improvement of transport system.

Source: JNNRUM, Ministry of Urban Development, Government of India



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Project name Sector PPP typeProject cost (US$ million)

Development of central business district in South TT Nagar, Bhopal Urban development BOT-toll 326.1

Sports city, international convention centre, star hotel, shopping complex and residential complex Urban development BOT-toll 195.7

Gwalior - Jhansi national highway road project Roads BOT-annuity 131.1

Khalaghat-Maharashtra border Roads BOT-toll 119.3

Indore to Khalaghat Roads BOT-toll 102.6

Four-laning of Bhopal,Devas state highway Roads BOT-toll 92.8

Four-laning of Lebad Jaura state highway Roads BOT-toll 91.5

50 km road between Jhansi - Lalitpur on NH-25 and NH-26 Roads BOT-annuity 91.5

Lakhnadon to Maharashtra border Roads BOT-annuity 88.7

Four-laning of Joura-Nnayagaon state highway Roads BOT-toll 87.8

Key public-private partnership projects under construction

EOI: Expression of interest, BOT: Build-operate-transfer

Source: www.pppindiadatabases.com



http://www.pppindiadatabases.com/�

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Education sector

• The state had a literacy rate of 63.7 per cent in 2001, compared to 44.2 per cent in 1991.

• In 2001, literacy rate among male was 76.1 per cent and literacy rate among female was 50.3 per cent.

• The state has 159 engineering colleges, 139 management institutes and five medical colleges.

Educational institution Number

Primary schools 94,890

Higher secondary schools 8,504

Degree colleges 303

Universities 12

Polytechnic institutes 158

Industrial training institutes 343

Engineering colleges 159

Management institutes 139

Medical colleges* 5

* Recognised by Medical Council of IndiaSources: Madhya Pradesh at a Glance, 2008, Economic Survey 2008-09, Website of Government of Madhya Pradesh (www.mp.gov.in)

Reputed institutes of Madhya Pradesh

• Indian Institute of Management (IIM), Indore

• Indian Institute of Forest Management, Bhopal

• Indian Institute of Hotel Management, Bhopal

• International Institute of Professional Studies, Indore



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• The healthcare services network of Madhya Pradesh comprise 48 hospitals, 270 community health centres, 1,149 primary health centres and 8,834 sub-centres, and 58 other hospitals.

• It also has 34 ayurvedic, 22 Homoeopathic and two unnani hospitals.

• As of 2007-08, the total number of in-patient beds in Madhya Pradesh’s (excluding medical colleges) were 26,971.

Health infrastructure

Health institution No

District hospitals 48

Primary health centres 1,149

Sub-centres 8,834

Community health centres 270

Ayurvedic hospitals 34

Unani hospitals 2

Homeopathic hospitals 22

As of March 2008Source: Ministry of Health & Family Welfare Government of India



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• Madhya Pradesh’s history dates back to the pre-historic age. The United Nations Educational, Scientific and Cultural Organistion (UNESCO) has declared three locations in the state as heritage sites: DeviJagadambika temples at Khajuraho, Buddhist monuments at Sanchi and rock shelters of Bhimbetka.

• The Directorate of Archaeology, Archives and Museums, is responsible for the upkeep of 339 monuments and 22 museums across the state.

• The State Government has established sports-academies to promote sports such as hockey, shooting, equestrian, water sports and martial arts.

• Eminent sports personalities are awarded with the Vikram awards, the Ekalavya awards and the Vishwamitra (lifetime achievement) award.

• Among the cultural festivals of Madhya Pradesh, the Khajuraho festival of dance and the Tansen music festival in Gwalior celebrate classical Indian dance and music. These festivals are well attended by both, domestic and international tourists.

Cultural infrastructure



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• Madhya Pradesh State Industrial Development Corporation Limited (MPSIDC) is the nodal agency for industrial growth in the state.

• For balanced and sustainable growth of industry across the state, MPSIDC has set up Madhya Pradesh Audyogik Kendra Vikas Nigam Limited (MPAKVN) at Bhopal, Gwalior, Jabalpur, Indore, Rewa and Ujjain.

Industrial infrastructure … (1/3)

Infrastructure Bhopal AKVN Gwalior AKVN Jabalpur AKVN

Area developed (hectare) 1,350.4 2,473.8 1,250

Growth centres Mandideep, PillukhediMalanpur, Ghirongi, Banmore, Chainpura, Siddhgawan, Pratappura

Borgaon, Maneri

Units establishedLarge and medium industries (LMI): 39small scale industries (SSI): 294

LMI: 44 SSI: 223

LMI: 10SSI: 44

Major companies HEG, Crompton Greaves, Procter & Gamble, Godrej, Lupin.

Surya Roshini, Godrej, Grasim, Cadbury, Crompton Greaves

Raymond, Hindustan Petroleum,, Ayur

Special infrastructure Inland Container Depot (ICD), food park ICD, food park, stone park stone park, food park

Proposed project Engineering cluster, logistic-hub, food park Habitat centre, SEZ SEZ (agro-based)

SEZ: special economic zoneSource: MPSIDC



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Infrastructure Indore AKVN Rewa AKVN Ujjain AKVN

Area developed (hectare) 3,254.8 307.4 431.6

Growth centres Pithampur, Kheda, Megh Nagar Rewa, Waidhan, Purena, Maiher Dewas, Maxi

Units established LMI:153 , SSI: 832 LMI: 7, SSI: 71 LMI: 52, SSI: 23

Major companies Eicher, Bridgestone, Hindustan Motors, Force, Mahindra Birla, Jaypee Ranbaxy, S.Kumars, Gajra, Kirloskar

Special infrastructure SEZ, food park, apparel park, ICD - Food park, ICD

Proposed project Auto testing track, food park. Industrial areaKnowledge city, new industrial area under the Delhi Mumbai Industrial Corridor project

SEZ: special economic zone, ICD: Inland Container DepotSource: MPSIDC



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Bhopal

Gwalior

Rewa

Ujjain

Indore

Jabalpur

Industrial clusters in Madhya Pradesh





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SEZs and industrial clusters … (1/2)

• There is one operational multi-product SEZ in Indore.

• As of June 2009, 14 SEZs had received formal approvals.

• Bhopal, Indore, Gwalior and Jabalpur are the major locations where SEZs have been approved.

GwaliorMulti-product (1)

Formally approved SEZ

In-principle approved SEZ

GwaliorIT/ITeS (1)Multi-services (1)

BhopalIT/ITeS (1)

BhopalIT/ITeS (1)

SehoreMulti-product (1)

IndoreIT/ITeS (7)

IndoreMulti-product (1)Agro-products (1)

ChhindwaraIT/ITeS (1)

ChindwaraMulti-product (1)Agro-products (1)

JabalpurIT/ITeS (1)Mineral-based (1)Agro-based (1)

Number of SEZ in parenthesisSource: Maps of India

Operational SEZ

SEZs in Madhya Pradesh



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SEZs and industrial clusters … (2/2)

Industry Location No of SEZs

Formally approved SEZ

IT/ITeS Indore, Gwalior, Chindwara, Jabalpur, Bhopal.

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Multi-services Gwalior 1

Mineral-based Jabalpur 1

Agro-based Jabalpur 1

In-principle approved SEZ

Multi-product Gwalior, Indore, Chindwara, Sehore

4

IT/ITeS Bhopal 1

Agri-products Indore 1

SEZ: special economic zone



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Infrastructure type Investments (US$ million)

Power* 8,432.1

Roads 901.3

Coal 665

Oil & Gas 6.1

Railway 61.1

Airport 4.3

Total 10,069.9

Infrastructure investments

*Generation and distributionSource: CMIE

• As of December 2008, infrastructure investments of over US$ 10 billion had been made in Madhya Pradesh.

• Around 88 per cent of investments in infrastructure were in the area of power generation and distribution.

• Other major investments were in the road transport and the coal sectors.



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Contents







39

Industrial Promotion Policy -2004 & Action Plan (including provisions as amended in 2007)

Aims: The policy envisages creating an industry-friendly administration, quality infrastructure, maximizing employmentopportunities, tackling industrial sickness, rationalising rates of commercial taxes and bolstering private sector participation.

Incentives provided to industrial units commencing operation on or after April 1, 2004 are as follows:• For companies with investment between US$ 0.217 million and US$ 2.17 million, 50 per cent of the commercial tax and central

sales tax (excluding commercial tax on purchase of raw material) will be reimbursed for three years (for those located in economically advanced districts) and five years in the backward districts.

• For companies with investment above US$ 2.17 million, 75 per cent reimbursement on taxes will be available for a period of three to 10 years depending on investment amount and location of unit.

• Projects with investments above US$ 5.43 million will be considered as mega projects and five to 20 acres of land at concessional rate of 25 per cent of stipulated premium rate would be provided, subject to availability of land.

• Mega projects, which involve modern technology and management will be provided with further benefits on case-to-case basis. Industrial units in food and agro-processing, milk products, herbal and forest-based products will be considered as mega-projects for investment of US$ 2.17 million and above.

• Partial or full exemption from stamp duty and registration charges will be provided on loan related mortgage agreements basedon location of units.

Sector specific policies … (1/8)


STATE POLICIES AND INCENTIVES

40

Industrial Promotion Policy -2004 & Action Plan , (continued)

Incentives:

• Exemption from electricity duty on captive power generation will be provided for five years.

• Interest subsidy, at the rate of three to five per cent will be provided for five to seven years for a total amount of US$ 20,000 to US$ 40,000, depending on location of units.

• Industries such as textiles, IT, bio-technology, automobiles, pharmaceuticals and herbal, food processing, agriculture and urbanwaste processing with fixed capital of US$ 0.11 million have been categorised as thrust sectors.

• A special subsidy at the rate of 25 per cent of fixed investment, up to US$ 22,000 to US$ 54,000, to be provided based on thelocation of the unit.

• Food processing industry will be exempted from mandi-fee levied on the agricultural produce brought as raw material from outside the state.




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IT Policy, 2006

Objectives: The objective of the policy is to improve the life of common man by leveraging the strength of e-governance andattract investment in the sector by providing conducive environment and highly skilled manpower to transform the state from aresource-based economy to a knowledge-based economy.

Key initiatives:

• Software, business process outsourcing (BPO), ITeS and computer hardware will be considered as IT industry. The state intends to promote IT industry in four cities, viz., Indore, Gwalior, Bhopal and Jabalpur.

• Select 500 government schools will be provided modern computing hardware, software and Internet connectivity.

• Centres of excellence will be established in all government engineering colleges and select other government colleges. Large andreputed companies will be invited to teach technology and provide their certification in these centres.

• English language teaching will be promoted in school-education to equip students with language skills required in the IT industry.




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IT Policy, 2006 (continued)

Key incentives:

• All incentives provided under the industrial policy will be applicable to the IT Industries. Single window clearance will be provided for setting up IT units.

• Reimbursement of 30 per cent of the cost (with a ceiling of US$ 8,700) on acquiring capability maturity model (CMM) and peoples capability maturity model (PCMM) level-three certification will be provided.

• Exemption up to twice the existing floor area ratio (FAR) will be provided for IT investment area.

• Rate of property tax in the IT investment area will be at par with that of residential premises.

• IT Industry will be provided power through a dedicated feeder. No prior permission will be required for installing captive powerplant for IT industry.

• Rebate on the cost of land, linked to employment generation capacity of the investment will be provided.

• Exemption from electricity duty, entry tax and work-contract tax will be provided.

• IT units in IT investment area will be exempted from payment of octroi, entry tax and local bodies’ tax for all capital goods and raw material purchased by them.

• All incentives will be for five years from the date the IT unit becomes operational.

• Companies establishing IT industries in the state will be entitled to special economic zone (SEZ) status under the Central Government provisions.




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Biotechnology Policy, 2003

Key objectives:• Conservation of the state's biodiversity and the sustainable use of its biotic resources.• Production of high-yielding, draught and pest resistant seeds for agriculture and horticulture crops suited to different agro-

climatic zones.

• Improvement of quality of livestock and poultry, especially the breeds indigenous to the state.• Enhancement productive potential of the aquatic eco-system.• Promotion and cultivation of medicinal and aromatic plants.• Production of cost effective drugs that help counter diseases common in the tropical and sub-tropical regions of the country.• Promotion of environmentally safe technologies to reduce pollution, and treatment of urban waste and industrial effluents.• Efforts to increase the number of those species whose numbers are declining.

Key initiatives:

• Agriculture, animal husbandry, fisheries, forest, medicinal and aromatic plants, health, environment protection, education, training, research and development have been identified as the key areas for development.

• Eco-friendly agriculture involving practices based on locally available biodegradable waste, bio-fertilizers and bio-pesticides will be steadily expanded to cover the entire state.

• Research programme and application of biotechnology for improvement of quality of livestock and fish stock will be emphasised.




44

Biotechnology Policy, 2003 (continued)

Key initiatives:

• Endeavour will be made to identify traits in the commercially important species available in the vast forest land in the state and comprehensive hybridisation programme will be taken up.

• Modern techniques of biotechnology will be encouraged for cultivation of medicinal and aromatic plants.

• The State Government will participate in the development of strategies for prevention and cure of diseases induced by malnutrition, faulty diet and lifestyles through application of medical biotechnology.

• Bio-remediation will be encouraged as an alternative to chemical treatment of industrial effluents and urban waste.

• Partnerships between rural and tribal communities and research institutions will be established to improve and expand the applications environment for traditional knowledge and practices.

• The existing educational facilities will be expanded by encouraging universities and colleges to set up facilities for under-graduate and post-graduate level programs in biotechnology.

• An appropriate policy framework for biotechnology industry will be created, which will have incentives and concessions for large, medium and small scale industries. Integrated biotechnology parks will be set up in the state.

• To implement the salient features of the policy, world class institutes of life sciences and technology, biotechnology parks, bio-centres will be set up at selected farms of the state agriculture department, medicinal and aromatic plant information exchange.

• Expansion of bio-village programme will be taken up.




45

Special Economic Zone Policy

Aim: To promote development of SEZ in the state.

Objectives:• All SEZ developers and units will receive exemption from payment of commercial tax, turnover tax, value added tax, octroi,

mandi tax, purchase tax, electricity cess, stamp duty or any other kind of cess or levy of the State Government for any transaction between them, within the zone as well as on sales made to domestic tariff area.

• SEZ units will receive all required clearances under the single window system.

• The State Government will provide adequate water supply for drinking, industrial and other use.

• Processes for obtaining consents and clearances pertaining to pollution control will be simplified.

• The SEZ will be exempted from electricity duty, cess and any other tax or levy on sale of electricity for self generated and purchased power.




46

Tourism Policy, 1995

Aims: The tourism policy envisage creation of conducive environment to attract increased private investment in the tourismsector and more meaningful role of the Government.

Incentives and initiatives:• Projects with at least ten rooms for accommodation and investment of US$ 110,000 will be considered for incentive package.

• Incentives will be provided to hotels, motels, recreation centres, ropeways, museums, amusement parks, craft villages, convention centres, air-conditioned buses for transportation of tourists and other tourism related activities such as adventure tourism, gliding, parasailing, river rafting, boating, trekking, rock climbing, etc.

• Government land will be provided as equity contribution to the project.

• Exemption under the Urban Land Ceiling Act will be provided on a case-to-case basis.

• New projects will be exempted of luxury tax, entertainment tax and sales tax for ten years since commencement of operations.




47

Logos used in this section are registered trade marks of the respective companies


Contents







48

Auto and auto components

Key players

• Bridgestone

• Eicher Motors Limited

• Force Motors Limited

• Hindustan Motors Limited

• Jaya Hind Industries Limited

• Mahindra Two Wheelers Limited

• Caparo India

• MAN FORCE TRUCKS Private Limited

• Gajra Group

• J K Tyre

• Madhya Pradesh has an automotive cluster located at Pithampur, which is an industrial growth centre near Indore.

• The basic industrial infrastructure available in the automotive cluster include power, water supply, telecommunication services, road and a dry port.

• The Pithampur automotive cluster is among the industrial clusters in India that have been identified by the Central Government for implementation of the Industrial Infrastructure Up-gradation Scheme (IIUS). The scheme aims at improving the competitiveness of functional clusters across the country.

• The Pithampur automotive cluster has automotive original equipment manufacturers (OEMs) such as Force Motors, Eicher Motors, Hindustan Motors and Mahindra Two wheelers, major tyre producing unit of Bridgestone and about 30 auto-component and ancillary units.


BUSINESS OPPORTUNITIES

49

Auto and auto components – company profiles … (1/3)

Bridgestone India Private Limited

Bridgestone India Private Limited is a part of Bridgestone Corporation, Japan, and is one of the leading manufacturers of tyres in India. The company started commercial production of tyres in 1998 in its plant at Kheda in Madhya Pradesh. The company produces around 2.7 million tyres, annually, including passenger steel belted radial tyres and tubes, and light commercial vehicle steel belted radial tyres and tubes. It is major supplier to car manufacturers and has over 1,000 dealers across India. It employs around 900 people .

Eicher Motors Limited Eicher began its business operations in 1959 with the rolling out of the first tractor in India. The Eicher Group has diversified business interests such as design and development, manufacturing and local/ international marketing of trucks and buses, motorcycles, automotive gears and components. The Pithampur plant of Eicher has a state-of-the-art manufacturing facilities with capacity of producing 30,000 vehicles annually. It has auto component manufacturing facilities at Pithampur (an SEZ covering 38,000 sq metre) and Dewas (plant area of 18,000 sq metre).

Force Motors Limited Force Motors is a vertically integrated automobile company which designs, manufactures and markets its range of vehicles – tractors, three wheelers, light commercial vehicle, multi-utility vehicle and heavy commercial vehicle. The manufacturing plant at Pithampur was set up in 1987 under license from Daimler-Benz to manufacture utility vehicles. The plant was further expanded in 1997. Subsequently , it also obtained ISO 9001: 2000 certification.

Hindustan Motors Limited Hindustan Motors Limited (HML), pioneer in automobile manufacturing in India, is the flagship company of the C. K. Birla group. The company manufacturers passenger cars, multi-utility vehicles and road-trusted vehicles (RTV). In technical collaboration with Australian OKA Motor Company, HML manufactures RTV in its plant in Pithampura.



50

Jaya Hind Industries Limited Jaya Hind Industries was established in 1947 with business interest in auto and auto-component manufacturing. The company has its manufacturing plants in Urse and Akrudi in Maharashtra and the fabrication division in Pithampura in Madhya Pradesh.

Mahindra Two Wheelers Limited

Mahindra Two Wheelers Limited was founded in 2008 when Mahindra & Mahindra Limited (M&M), India's leading automotive companies took over Pune-based Kinetic Motor Company Limited (KMCL). The company has a state-of-the-art, ISO 90001 certified ,manufacturing facility at Pithampur in Madhya Pradesh with capacity to assemble about 450,000 units per annum.

Caparo India The Caparo Group is a UK-based US$ 1.3 billion company with business interest in steel, automotive and general engineering goods. Caparo India, the Indian business arm of the group, provides complete solutions in designing, developing and manufacturing of automotive systems, assemblies and components to original equipment manufacturers and engineering industries. The company has two plants at Pithampur for manufacturing of stamping and serves EicherMotors and Force Motors. The plants, together, have a capacity of 15.4 million strokes per year. It also has a steel tube manufacturing plant at Dewas with capacity of 48,600 tonnes per year.




51


MAN FORCE TRUCKS Private Limited

MAN FORCE TRUCKS Private Limited is a joint venture between MAN Nutzfahrzeuge AG of Germany and FORCE Motors Limited of India. The company manufacturers commercial vehicles in its plant at Pithampur in Madhya Pradesh. The plant has installed capacity of 24,000 vehicles per annum and almost 50 per cent of the production is earmarked for exports.

Gajra Group The Gajra Group has business interest in manufacturing of transmission and differential gear, cutting tools and tooling (jigs and fixtures). The company earns around 50 per cent of its revenue from exporting these products. It has a manufacturing plant at Dewas in Madhya Pradesh, which has 130,000 sq ft of machine shop and 29,000 sq ft of heat treatment facilities.

J K Tyre J K Tyre is one of the leading tyre manufacturers in India. The company was pioneer in introducing radial tyres in India. It has a manufacturing plant in Banmore in Madhya Pradesh. Radial tyres for passenger cars are manufactured in the plant, which has been awarded the “Golden Peacock Environment Management Award” for excellence in environment protection.



52

Textiles

• Madhya Pradesh is one of the major cotton producing states of India. In 2008-09, cotton was grown on 650,000 hectares in the state with a total production of 1.8 million bales.

• A large number of cotton textile mills are clustered around Indore, Dewas, Ujjain and Malanpur.

• The Indore SEZ has been identified by Central Government for setting up an apparel park under the Apparel Park for Exports Scheme (APES). Further, Indore has been identified for infrastructure development under the Textiles Centre Infrastructure Development Scheme (TCIDS).

Key players

• Century Textiles and Industries Limited

• Grasim Industries Limited

• Maral Overseas Limited (Bhilwara)

• S. Kumars Nationwide Limited

• S R F Limited

• Vardhman Textiles Limited

• Raymond Limited

• Dhar Textiles

• Abhishek Industries



53

Textiles – company profiles … (1/2)

Century Textiles and Industries Limited

Century Textiles and Industries Ltd was incorporated way back in 1897. The company has interest in textile, rayon, cement and paper. Yarn and denim production unit of the textile business are located in Satrati in Madhya Pradesh. The plant is equipped with 24,960 spindles for manufacture of yarn and produced about 4,992 tonnes of yarn during 2007-2008. The denim division has production capacity of 21 million meters of denim fabrics per annum.

Grasim Industries Limited Grasim Industries Limited, a flagship company of the Aditya Birla Group, is one of the largest companies in India with diverse interest in cement, chemicals and textiles. Its textile plants are located at Bhiwani, Haryana and Malanpur, Madhya Pradesh. The Malanpur unit of the company manufactures worsted dyed yarn spun from pure merino wool along with polyester and other blends. The company has a wide retail network and also serves international apparel manufacturers.

Maral Overseas Limited (Bhilwara)

Maral Overseas Limited, one of India’s largest vertically integrated textile companies is a part of LNJ Bhilwara group. The company has manufacturing capability of producing 1,500 tonnes of grey yarn, 125 tonnes of dyed yarn, 400 tonnes of knitted fabric and 500,000 pieces of garments every month. One of the two units of the company are located at Khargone in Madhya Pradesh which produces yarn and fabrics. The unit also has a 10 MW captive power plant.

S Kumars Nationwide Limited S Kumars Nationwide Limited is one of India’s leading textile and apparel company with expertise in multi-fibre manufacturing. The company has four state of art manufacturing units with collective capacity of 200,000 metre of fabric per day. Its Chamunda standard mills and Amana manufacturing unit in the outskirts of Dewas, Madhya Pradesh manufacture a fine variety of fabric – Damask. Product of the plant cater to domestic market as well as exported to Europe.



54

Textiles – company profiles … (2/2)

S R F Limited SRF Limited is a manufacturer of chemical based industrial intermediates with presence in UAE, Thailand and South Africa apart from India. The company is a global leader in technical textile business and is a domestic leader in refrigerants, engineering plastics and industrial yarns as well. SRF manufactures tyre cord fabrics in its Malanpur plant in Madhya Pradesh. The company has an ultra-modern packaging plant in the Indore SEZ with an annual capacity of 21,000 tonnes.

Vardhman Textiles Limited The Vardhman Group is a leading textile conglomerate in India having a turnover of US$ 700 million. The company has manufacturing plants in Mandideep, Satlapur and Bhudhni in Madhya Pradesh. The yarn manufacturing units are located in Mandideep (74,496 spindles) and Satlapur(170,528 spindles) and Bhudhni (60,000 spindles). Further, the Bhudhni plant has fabric weaving unit (400 looms) and a fabric processing unit with capacity of 40 million metre per annum.

Raymond Limited Raymond is a major fabric manufacturer in India. The company has also business interests in engineering and aviation. The company is one of the largest integrated manufacturer of worsted fabric in the world and commands around 60 per cent market share in India. The total production capacity of the company is around 38 million metres of wool and wool blended products. One of the four plants of the company is located at Chhindwara in Madhya Pradesh.

Dhar Textiles Dhar Textile is a manufacturer and exporter of yarns, fabrics and garments. It has a spinning unit in Pithampur, Madhya Pradesh with 1,296 rotors and 3,840 spindles and installed capacity of 3,600 tonnes per annum. The weaving division of the company is equipped with 30 airjetlooms and eight rotary printing and curing range with loop steamer. The garment manufacturing plant of the company has capacity of 50,000 units per month.

Abhishek Industries Abhishek Industries is the flagship company of US$ 543 million Trident Group, which has business interest in textiles, paper, yarn, chemicals and energy. The company has five yarn -manufacturing units in India, of which one is located at Budhni In Madhya Pradesh. The combined capacity of all these plant is 176,352 spindles and 1,920 rotors.



55

Cement

• Jawad and Neemuch of Madhya Pradesh belong to one of the seven major lime stone clusters in India and hence provide easy access to critical raw material resource for the cement industry.

• The state has total limestone reserves of 3,625.9 million tonnes, spread across more than15 districts.

• In 2009, total installed capacity in the state was around 20 million tonnes of cement per annum –one of the highest among Indian states. The cement plants in the state operate at a high efficiency level with total production being close to capacity.

Key players

• ACC Limited

• Birla Corporation Limited

• Everest Industries Limited

• Heidelberg Cement India Limited

• Jaypee Group

• Prism Cement Limited



56

Cement – company profiles

A CC Limited ACC Limited (ACC) is one of the largest cement manufacturers in India with 16 cement plants, more than 40 ready-mix concrete plants, 20 sales offices and over 9,000 dealers. In Madhya Pradesh, it has plants in Kymore with a capacity of 2.2 million tonnes per annum.

Birla Corporation Limited Birla Corporation Limited is the flagship company of the M P Birla group with business interests in cement, jute, Polyvinyl Chloride, floor covering and auto trims. The cement plant of the company is located in Satna, Madhya Pradesh. The plant with 5.8 million tonnes per annum capacity, produced 5.3 million tonnes of cement in 2008-09.

Everest Industries Limited Eversest Industries Limited manufacturers a range of building solutions which includes ceilings, walls, flooring, cladding, doors, roofing and pre-engineered steel buildings. One of the five manufacturing facilities of the company is located at Kymore in Madhya Pradesh. It is among the first manufacturers of fibre-cement roofing sheets and accessories in India. The plant has been awarded by State Government for excellence in the fields of safety, health and environment.

Heidelberg Cement India Limited

Heidelberg Cement India Limited is a subsidiary of the Heidelberg Cement Group, which is one of the largest cement manufacturers in the world. The company has cement plants at Damohand Jhansi in Madhya Pradesh. Its cement is sold under brand name ‘Mycem’.

Jaypee Group The Jaypee group has eight cement plants in North India, with total installed capacity of about 10 million tonnes. In 2008-09, the company produced around 8 million tonnes of cement. The company has two plants in Madhya Pradesh – one at Rewa (with an installed capacity of 3 million tonnes) and another at Bela (2.4 million tonnes).

Prism Cement Limited Prism cement has a cement plant at Satna in Madhya Pradesh with installed capacity of 2.5 million tonnes. In 2008-09, the plant operated at around 100 per cent efficiency and used the entire installed capacity.



57

Pharmaceutical and biotechnology industry

• Madhya Pradesh has rich bio-diversity; about 31 per cent of the state is under forest cover; 11 of the 25 agro-climatic zones are present in the state and a large variety of rare and valuable medicinal and herbal plants are available.

• The state has formulated a bio-technology policy, which is expected to create a conducive environment for bio-pharmaceutical industry in the state.

• Biotechnology and pharmaceuticals have been recognised as thrust sectors and incentives are provided for setting up industries in these sectors.

Key players

• Lupin Limited

• Ipca Laboratories Limited

• Piramal Healthcare Limited

• Ranbaxy Laboratories Limited

• Alpa Laboratories



58

Pharmaceutical – company profilesLupin Limited Lupin Limited is an innovation-led pharmaceutical company producing wide range of generic and

branded formulations and Active Pharmaceutical Ingredients (API). The company has two plants in Madhya Pradesh – one at Indore for formulations and another at Madideep for API. The plant at Mandideep is approved by global authorities in pharmaceutical products such as WHO, USFDA and UKMHRA.

Ipca Laboratories Limited Ipca is a fully integrated Indian pharmaceutical company with a strong thrust on exports. The company has operations in over 100 countries and exports account for over 50 per cent of the income. The company has eight manufacturing plants in India. In Madhya Pradesh, it has plants at Indore (plant area of 6,503 square metre), Pithampur (200,000 sq m) and Ratlam (272,900 square metre). The plants manufacture drug intermediaries, tablets liquids, injectibles, etc., and are certified by apex global agencies.

Piramal Healthcare Limited

Piramal Healthcare Limited (PHL) is a globally integrated healthcare company with revenue of around US$ 656 million in 2008-09. The company caters to a large range of therapeutic products under a number of divisions such as acute care, biotech, cardiac, diabetes, general medicine, ortho, pain management ,etc. The company has six manufacturing facilities in India, one of which is located at Pithampur in Madhya Pradesh.

Ranbaxy Laboratories Limited

Ranbaxy Laboratories Limited (Ranbaxy), India's largest pharmaceutical company, is an integrated, research-based pharmaceutical company with global presence. In 2008, the total revenue of the company was US$ 1,682 million. The company manufacturers a wide range of generic medicines in its manufacturing facilities located in seven countries. It has a manufacturing facility at Dewas, Madhya Pradesh, where it has three independent units engaged in the production of cephalopsorins, semi -synthetic penicillin and non-beta-lactum products.

Alpa Laboratories Alpa Laboratories manufacturers and markets pharmaceutical products for human and veterinary use. It has manufacturing facility spread across 110,000 sq ft built-up area at Indore. The range of products manufactured includes injectibles, tablets, capsules, creams, gels and ointments. The company is certified by World Health Organisation.



59

Manufacturing

• Madhya Pradesh State Industrial Development Corporation and its subsidiaries have successfully developed several growth centres across the state.

• The industrial policy of the state provides incentives for setting up manufacturing units.

• Industrial infrastructure, policy incentives, labour resources and central location of the state are some of the growth drivers for manufacturing industry in the state.

Key players

• Bharat Heavy Electricals Limited

• Birla Ericsson Optical Limited

• Kirloskar Brothers Limited

• Kores (India) Limited

• Crompton Greaves

• HEG Limited

• Avtec Limited

• L&T-Case Equipment Private Limited



60

Manufacturing – company profiles … (1/2)

Bharat Heavy Electricals Limited

Bharat Heavy Electricals Limited (BHEL) is a large engineering and manufacturing enterprise in India in the energy-related and infrastructure sector. The Bhopal unit of BHEL was set up in 1956 with technical assistance from Associated Electricals (India) Limited, a UK-based company. The unit has capability to manufacture hydro-, steam-, marine- and nuclear-turbines, heat exchangers, hydro and turbo generators, transformers, switchgears, control gears, transportation equipment, capacitors, bushings, electrical motors, rectifiers, oil drilling rig equipment and diesel generating sets. The unit also has a material testing and instrument calibration laboratory and a township spread across 20 sq km for its employees.

Birla Ericsson Optical Limited Birla Ericsson Optical Limited (BEOL), an M.P. Birla Group company, was established withtechnical and financial collaboration with Ericsson Network Technologies AB of Sweden. The company has a plant in Rewa, near Bhopal with an installed capacity of more than 53,000 cable km per annum of optical-fibre and 4.3 million conductor km of jelly-filled copper telephone cables.

Kirloskar Brothers Limited Kirloskar Brothers Limited (KBL) is the flagship company of the US$1.2 billion Kirloskar group. KBL has business interest in large infrastructure projects such as water supply, power generation and irrigation, manufacturing of pumps for domestic, agricultural and industrial use. The total sales of KBL in 2008-09 was over US$ 500 million. The company has four manufacturing plants, one of which at Dewas in Madhya Pradesh was established in 1962. The plant manufacturers pumps for domestic and agricultural use.

Kores (India) Limited Kores (India) Limited was incorporated in 1936 and has business interest in diverse fields such as office products, foundry, textiles, pharmaceuticals, engineering, etc. The engineering division of the company has plant at Pithampur in Madhya Pradesh. The plant is set up on an area over 70,000 sq m and has facilities such as machine shop, fabrication shop and assembly shop. The company produces hydraulic tank, pump and drills in the plant at Pithampur.



61

Crompton Greaves Crompton Greaves is a part of US$ 3 billion Avantha Group. The company is engaged in designing, manufacturing and marketing of technologically advanced electrical products and services. The company manufactures transformers and DC machines at its plant in Mandideep, Madhya Pradesh. The company has another plant in Malanpur where it manufacturers transformers.

HEG Limited HEG limited is a part of Bhilwara group and is a manufacturer of graphite electrodes and carbon specialities. The company manufacturers graphite electrode at its plant in Mandideep. The plant spread across 170 acre has capacity to produce 52,000 tonnes of ultra high performance grade electrodes. It also has a 40 mega watt captive power plant. Around 80 per cent of production of the plant is exported. The plant is one of the largest in Southeast Asia and Middle-East in its category.

Avtec Limited AVTEC is one of the largest independent manufacturers of engines and transmissions (power trains) in India and supplies critical auto-components to reputed Indian and global original equipment manufacturers. The company has four manufacturing plants across the country. The power unit is located at Pithampur where engines and transmissions component for automobiles are manufactured. The plant is located on a 60 acre area with 36 acre of developed land.

L&T-Case Equipment Private Limited

L&T-Case Equipment Private Limited was formed in November 1998 ,and is a 50:50 joint venture between Larsen & Toubro Limited and CNH Global N.V. The company designs, manufactures and supplies construction and road building equipment such as loader backhoes and vibratory compactors. The manufacturing facility of the company is located at Pithampur in Madhya Pradesh. It is spread over 40 acres with over 12,000 sq m of built-up space, equipped with state of the art facilities.

Manufacturing – company profiles … (2/2)



62

Fast moving consumer goods

• A number of factors such as industrial infrastructure in growth centres, labour pool and central location of the state are the drivers for setting up consumer goods manufacturing facilities in Madhya Pradesh.

• A number of multinational companies such as Cadbury, Procter & Gamble, Hindustan UnileverLimited, Coca Cola and Cargill have their manufacturing plants in the state.

• Majority of the manufacturing plants are located in industrial areas of the state such as Malanpur, Mandideep, Pithampur and Chhindwara.

Key players

• Cadbury India Limited

• Procter & Gamble

• Dabur India Limited

• Hindustan Uniliver Limited

• Jyothy Laboratories Limited

• Godrej Consumer Products Limited

• Coca Cola India

• Cargill India Private Limited



63

Cadbury India Limited Cadbury is a leading global confectionery company with a portfolio of chocolate, gum and candy brands and operations in over 60 countries. In India, the company started its operation in 1948 and has five factories and four sales offices. The company has a factory at Malanpur industrial area in Gwalior.

Procter & Gamble (P&G) P&G Home Products Limited, one of India's large consumer goods companies, is a 100 per cent subsidiary of Procter & Gamble Company, USA. The company owns some of the reputed brands in fabric care, hair care and baby care segments. The company has its manufacturing plant at Mandideep in the Raisen district of Madhya Pradesh.

Dabur India Limited Dabur India Limited is one of the leading consumer goods company in India with revenue of US$ 616 million (2008-09). The company has three major divisions: consumer care, consumer health and international business. One of its 17 manufacturing plants of the company, is located at Katniin Madhya Pradesh.

Hindustan Unilever Limited (HUL)

Hindustan Unilever Limited (HUL) is a subsidiary of Uniliver and is India's largest consumer goods company with a portfolio of brands in 20 distinct categories. Established in1930, today, the company has 28 manufacturing plants across India and employs 15,000 persons. The company has its manufacturing plant at Chhindwara in Madhya Pradesh.

Fast moving consumer goods – company profiles … (1/2)



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Fast moving consumer goods – company profiles … (2/2)

Jyothy Laboratories Limited

Established in 1983, Jyothy Laboratories is a multi-product company with six business divisions and pan-India presence. The company manufactures and markets fabric care, insecticides, utensil cleaners, fragrances and personal care products. The company has 21 manufacturing plants spread across 14 locations. One of the manufacturing plants is located at Pithampur in Madhya Pradesh.

Godrej Consumer Products Limited

Godrej Consumer Products (GCPL) is one of the leading consumer goods companies in India with personal and home care products. The company has a pan-India presence with four branch offices and five manufacturing plants. One of the manufacturing plants are located at Malanpur, in Madhya Pradesh.

Coca Cola India Coca Cola is one of the largest beverage companies in the world. The Indian operation of the company has 50 bottling plants and a network of 21 contract packers. The company has manufacturing location at Ricchi industrial area in Jabalpur which serves a markets of Central India.

Cargill India Private Limited

Cargill in India has business interest in a wide range of products, including refined oils, grain and oilseeds, sugar, cotton and animal feed. In addition, Cargill develops flavour systems and operates a value investing business. Cargill has a soybean processing plant in Madhya Pradesh.



65

Agro-based industry• Of the total gross area under crop cultivation in the

state, 59 per cent is sown in the Kharif season while the other 41 per cent is sown in the Rabi season.

• About 24 per cent of the area under crop cultivation in the state can be used for cultivation throughout the year.

• In 2007-08, Madhya Pradesh was the largest producer of soybeans with total production of around five million tonnes.

• The state is the largest producer of oilseeds; it produced 6.4 million tonnes in 2007-08, accounting for 21.3 per cent of the national production.

• The state leads in the production of spices and is the largest producer of garlic, accounting for 37 per cent of the total national production.

• Jawaharlal Nehru KrishiVishwavidyalaya is located in Jabalpur and serves as a centre for teaching and research in agriculture and allied sciences.

Key players

• Adani Wilmar Limited

• Anik Industries Limited

• Gujarat Ambuja Exports Limited

• K S Oils Limited

• Ruchi Soya Limited

• Dewas Soya Limited

Agri export zones in MP for various products/ crops

Pulses Oranges

Seed spices - coriander and fenugreekWheat



66

Agro-based industry – company profiles … (1/2)

Adani Wilmar Limited Adani Wilmar Limited (AWL) is a joint venture between two global corporations - AdaniGroup of India and Wilmar International Limited of Singapore. The company has production infrastructure across the country with a crushing capacity of over 6,000 tonnes per day) and refining capacity of over 5,000 tonnes per day. The company has a production unit in Chindwara and a packaging plant at Dewas in Madhya Pradesh.

Anik Industries Limited Anik Industries Limited manufacturers and markets dairy and milk derivative products, wind power, soya protein isolate and concentrate. The company has two milk processing unit in Madhya Pradesh for manufacturing of dairy products - one at Dewas (capacity of 240,000 litre of milk per day) and another at Bhopal (capacity of 100,000 litre of milk per day). These units are supported by 11 chilling centres spread across the state which collect milk from more than 5,000 villages.

Gujarat Ambuja Exports Limited

Gujarat Ambuja Exports Limited (GAEL) is involved in agro-processing and trading with a major focus at export. The company has three manufacturing plants, with combined capacity of 4,000 tonnes per day. One of the soya processing plants of the company is located at Pithampur, near Indore in Madhya Pradesh. Products of the company are exported to Southeast Asia, Middle East and other Asian countries.



67

Agro-based industry – company profiles … (2/2)

K S Oils Limited K S Oils is a leading Indian integrated edible oil company which produces and markets mustard oil, refined oil and vanaspati. The company has its fully integrated plant at Morena in Madhya Pradesh with crushing capacity of 1,475 metric tonnes of mustard seed per day. The plant also has a in house packaging unit.

Ruchi Soya Industries Limited Ruchis Soya Industries Limited is one of the major agro-based product manufacturers in India. Product portfolio of the company includes edible oil, soya foods, bakery fat and vanaspati. It is also the largest exporter of soya foods and lecithin from India. A factory and the head office of the company is located in Indore, Madhya Pradesh.

Dewas Soya Limited Dewas Soya Limited, a company of Hind Group, commenced operations of its soybean extraction plant in Dewas, Madhya Pradesh in 1995. The extraction plant and the refinery of the company has capacity of 900 tonnes per day and 140 tonnes per day, respectively. It also has 150 tonnes per day plant for producing soy flour and grits. The company exports soy meal in international market.



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Tourism … (1/2)• The State Government has identified the tourism

sector as one of the key areas for growth.

• In 2008, domestic tourist inflow stood at over 22 million, registering average growth of 46 per cent per annum over last four years.

• In 2008, foreign tourist arrival was over 251,000, registering a growth of 16 per cent per annum over last four years.

• The State Government has shortlisted18 major centres, which attract a large number of domestic and foreign tourists for comprehensive development.

• The State Government has taken initiatives to promote eco-tourism, wild life and adventure tourism, leisure and business tourism and pilgrim tourism.

Source: Tourism Statistics 2008, Ministry of Tourism

Domestic tourist arrivals

International tourist arrivals

7.1

11.1

13.9

22.1

0

5

10

15

20

25

2005 2006 2007 2008

160.8186.6

234.2251.7

0

50

100

150

200

250

300

2005 2006 2007 2008


Tour

ists

(mill

ion)

Tour

ists

('00

0)


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Tourism … (2/2)

Major places of tourist interest in Madhya Pradesh are as follows:

• Kanha: the largest wildlife sanctuary in Asia.

• Khajuraho: has some of the most famous sculptures in the world.

• Bhimbetka: has the oldest cave-paintings in the world.

• Sanchi: houses the oldest Buddhist stupa in the world.

• In addition, the state has nine national parks and 25 game sanctuaries.


Tourist map of Madhya Pradesh



70

Forest-based industries

Forest map of Madhya Pradesh • Madhya Pradesh has forest area of 94,689.4 sq km, which accounts for nearly 31 per cent of the total area of the state.

• With a share of nearly 12 per cent of the total forest area of the country, Madhya Pradesh has the largest area covered by forest among all the states in India.

• Forest-based industries are key contributors to the economy of the state and also provide employment to a large part of the population.

• The average annual production of tendu leaves in the state is around 2.5 million standard bags.

• Madhya Pradesh accounts for nearly 25 per cent of all tendu leaves produced in India.




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IT and ITeSIT parks

Crystal IT Park (5,50,000 sq ft) Indore

Hardware and Software Technology Park (200 acres)

Bhopal

Software Technology Park (1,00,000 sq ft)

Indore

IT Park (50 acres) Gwalior

IT Park (90 acres) Jabalpur

IT projects in MP

• The state has fibre optic backbone of over 24,000 km that cover its 313 developmental blocks across 45 districts.

• The state is home to the country’s first Indian Institute of Information Technology and Management (IIITM), which is located in Gwalior.

• Five information technology parks, located at Bhopal, Indore (2) , Gwalior and Jabalpur, are at various stages of development.

• All the IT parks in the state has been given SEZ status.

• The IT policy of the state provides incentives to the investors in the information technology sector. Hardware & Software

Technology Park, Bhopal

Crystal IT Park, Indore

Software Technology Park, Indore

IT Park, Gwalior

Jabalpur IT Park, Jabalpur




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Mineral reserves as percentage of India’s reserves

Mineral-based industry and company profiles … (1/3)

• The state has vast mineral deposits of diamonds, slate, pyrophyllite, diaspore, coal, limestone, copper ore and manganese among others.

• In 2007-08, mining and quarrying contributed US$ 1.65 to the GSDP of the state.

• Madhya Pradesh is the sole producer of diamonds in India. Besides, the state is the largest producer of minerals such as pyrophyllite and copper.

• The state has over 60 per cent of the total national reserves of copper ore.

• The thickest coal seam (135 m) of Asia is found at the Singrauli coalfield in the Sidhi district of Madhya Pradesh.

Source: Directorate of Geology and Mining, Madhya Pradesh

100.0%65.4%

61.5%

50.0%

36.3%

19.9%

11.8%

10.0%

7.8%

6.3%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Diamond

Diaspore

Copper Ore

Pyrophyllite

Rock Phosphate

Manganese Ore

Dolomite

Coal Bed Methane

Coal

Limestone



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Production of minerals and per cent of national production

Production between March and December 2008

Source: Directorate of Geology and Mining, Madhya Pradesh

Name Production (tonnes) Share of MP in India (per cent)

Diamond 498 100.0

Pyrophyllite 118,201 79.1

Copper ore 1,202,000 54.8

Diaspore 8,701 43.8

Manganese-ore 439,000 21.3

Clay (others) 95,000 19.4

Shale 414,000 18.4

Coal 51,426,000 15.1

Limestone 19,312,000 12.8

Rock-phosphate 162,000 12.3



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Hindustan Copper Limited Hindustan Copper Limited (HCL) is a vertically integrated copper manufacturing company. In 1982, the company established its Malanjkhand copper project, which has the single-largest copper deposit in the country. The Malanjkhand mine has a copper deposit of 221 million tonnes with 1.31 per cent copper concentration. The company possesses an open-pit mine with capacity of 2 million tonnes per annum, concentrator plant, tailing disposal system and other auxiliary facilities. The plant contributes to 90 per cent of the production of the company.

N M D C Limited NMDC is a public sector unit involved in mining of wide range of minerals such as iron, copper, lime stone, dolomite, gypsum, tin, graphite, diamond among others. NMDC is the only organised producer of diamond in India and produces diamond from its Majhgawan mine at Penna in Madhya Pradesh. The production capacity at the mine is around 84,000 carat per annum. The mine employs around 240 persons.



75

Major industrial projects being implemented

Project Sector Promoter Investment(US$ million) Location

Sasan ultra mega power project Power Sasan Power Limited 4,347.8 Sasan

Bina refinery Refinery Bharat Oman Refineries Limited 2,256.1 Bina

Aluminium smelter (Sidhi) project Aluminium Hindalco Industries Limited 1,673.9 Orgari

Vindhyachal super thermal power project -stage IV

Power NTPC Limited 1,285.9 Vindhyanagar

Indira Sagar (Narmada Sagar) irrigation project Irrigation Narmada Valley Development Authority (NVDA) 1,119.6 Punasa

Pithead Coal Based Power (Sidhi) project Power Essar Power Limited 1,065.2 Sidhi

Western Region grid strengthening scheme- IIPower

distributionPower Grid Corporation of India Limited 1,043.5

Madhya Pradesh*

Coal-based power (Khandwa) project Power Madhya Pradesh Power Generating Co Limited 978.3 Khandwa

Omkareshwar irrigation project Irrigation NVDA 898.7 East Nimar

Bargi diversion irrigation project – RBC^ Irrigation NVDA 566.1 Jabalpur

Maheshwar hydel power project Power Shree Maheshwar HydelPower Corporation Limited 532.7 Mandleshwar

*Partially in Madhya Pradesh ^ Right Bank CanalSource: www.projectstoday.com



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Key industrial projects being planned

Project Sector Promoter Investment(US$ million) Location

Integrated steel (Parasia) projectFinished

steel SKS Ispat & Power Limited 1,630.5 Parasia

Coal-based power (Bhokha Dongri) project Power Reliable Thermal Power Limited 1,435.8 Manpur

Coal-Based Power (Singroli) project Power DB Power Limited 1,304.3 Singroli

Coal-based power (Anuppur) project Power Vandana Power Ventures Limited 1,304.3 Anuppur

Coal-based power (Shadol) project Power Jain Energy Limited 1,260.9 Shahdol

Coal-based power (Gotegaon) project Power Today Energy (M P) Private Limited 1,174 Gotegaon

Coal-based power (Sidhi) project Power Jaiprakash Power Ventures Limited 1,087.0 Nigrie

Cement (Madhya Pradesh) project Cement Bhushan Steel Limited 869.5 Damoh

Cement (Maihar) project, Phase-I Cement Reliance Cementation Limited 543.5 Satna

Steel (Damoh) projectFinished

steelSPJ Steel & Minerals Private Limited 489.1 Damoh

Source: Projectstoday



77


Contents







78

Key approvals required

List of approvals and clearances required Departments to be consulted

Prior to setting up the unit

RegistrationDistrict trade and industries centre

Allotment of land/shed

Permission for land use District authorities

No objection certificate under Water and Air Act Madhya Pradesh Pollution Board

Approval for construction activity and building plan Development authority

No objection certificate Fire department

Provisional trade tax registrations Central and state excise departments

Before commencement of production

No objection certificate under of Water and Air Act Madhya Pradesh Pollution Board

No objection certificate Fire department

Permanent trade tax registration under Central Sales Tax Act 1956 Central and state excise departments

Registration under Central Sales Tax Act 1956

After commencement of production/activity

Registration Industries department


DOING BUSINESS IN MADHYA PRADESH

79

Cost of doing business in Madhya Pradesh

Cost parameter Cost estimate Source

Cost of land (per sq m) US$ 3 to US$ 11 Madhya Pradesh State Industrial

Development Centre

Hotel costs per room per night(four-star, five-star hotel) US$ 90 to US$ 120 Leading hotels in the state

Residential rent(per month for1,200 sq ft apartment ) US$ 130 to US$ 220 Property dealers

Commercial rent(per sq ft per month) US$ 0.7 to US$ 1.1 Property dealers

Power cost (industrial, high tension)

Monthly fixed charges: US$ 3.5(11KV) to US$ 7.4 (132 KV)

Energy charges: US 7.3 cents perkWh (11KV) to US 6.5 cents perkWh (132 KV)

Madhya Pradesh State Electricity Board

Labour (man year) US$ 1,075 to US$ 1160 Department of Labour, Government of Madhya Pradesh



80

Key nodal agencies in Madhya Pradesh

Department of Commerce, Industry and Employment

The department is responsible for industrialization in the state by way of development of small, medium and large scale industries and new investment. The department is also responsible for creation of basic infrastructure and development of industrial parks. The department has several support institutions such as Madhya Pradesh State Industrial Development Corporation (MPSIDC) and Audhyogik Kendra Vikas Nigam (AKVN) in five cities.

District Trade and Industries Centre

District Trade and Industries Centres are district level offices of the Department of Commerce, Industry and Employment of the State Government. These centres are empowered to provide clearance for setting up industrial units.

Madhya Pradesh State Industrial Development Corporation

Madhya Pradesh State Industrial Development Corporation (MPSIDC) is a support institution of Department of Commerce, Industry and Employment of the State Government. The organisation had the mandate to promote the state as an industrial destination and help companies set up and expand industries in Madhya Pradesh.



81

Contact list

Key agency Contact information

Department of Commerce, Industry & Employment

Vindyachal BhawanBhopal, Madhya PradeshPhone: 91-755 -276 0363E-mail: [email protected] Website: http://www.mpindustry.org

District Trade and Industries CentreDistrict Trade and Industries CentreBhopal, Madhya PradeshPhone: 91-755-255 1015

Madhya Pradesh State Industrial Development Corporation

AVN Towers 192 Zone -1, M.P. NagarBhopal - 462 011, Madhya PradeshPhone: 91-755 - 427 0370 Fax: 91-755- 427 0280E-mail: [email protected] , [email protected]: www.mpsidc.org



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82

Annexure

Exchange rates

Year INR equivalent of one US$

2000 46.62001 48.32002 48.02003 45.62004 43.72005 45.22006 45.02007 42.02008 40.22009 46.0

Average for the year



83


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MADHYA PRADESH - Business Opportunities in India ... Pradesh has rich mineral resources and has the largest reserves of diamond and copper in India. Besides, the state has significant