Investment Brochure

RajasthanThe Booming Automotive

Destination

Rajasthan

Delhi

INDIA

Mumbai

Rajasthanat a Glance

Map

is in

dica

tive.

Area 342,239 sq km Largest State in India

Location North-western India; shares domestic borders with Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat

Population 68.5 million (Economic Review 2013-14)

Capital Jaipur

Time Zone GMT + 5 hours, 30 minutes

Districts 33

Share of India's GDP 4.7%

Rajasthan is rapidly developing into an important automotive hub with Bhiwadi,

Neemrana and Pathredi in Alwar district being host to over 100 automotive and auto

component manufacturing companies.

The competitive advantage of the state lies in skilled & relatively low cost labour, good

industrial relations, availability of large contiguous land parcels and uninterrupted power

availability which are generally the prerequisites for any automotive industry to set up.

Also proximity of component suppliers in Bhiwadi, Choupanki and Neemrana has

resulted into effective operations through reduced logistics cost for the auto industry.

RajasthanRajasthan – India’s Emerging Investment

Destination for Automotive Sector

CompetitiveAdvantage + A good strategic location; within National Capital Region and falling between the

Western and Northern regions of country which together account for over 57%

of the country’s automotive sales.

+ Skilled and relatively low cost labour with history of good industrial relations.

+ Proximity to the largest concentration of automotive companies in India and

presence of automotive ancillary players across the Value chain.

+ Clusters of large land parcels suitable for OEMs along with major auto ancillary

suppliers. Land parcels in Khushkhera Extension (600 acres) and Tapukara

Extension (150 acres) have already been allotted.

+ Delhi-Mumbai Industrial Corridor (DMIC) passing through the state will provide

excellent logistic & transportation infrastructure.

+ Investor friendly Government which is highly supportive of private sector

investment - hassle free simplified procedures through Single Window System.

+ Customized incentive packages for large investments.

Strategic location of Rajasthan allows access to both western and

northern automotive markets of India which together account for over

57 per cent of total automobile sales in the country. Close proximity to

the NCR also allows easy access to the existing auto component

supplier network and logistics facilities there. Rajasthan’s automotive

hub is located in the north of the National Capital Region (NCR) and

around 100 km from Indira Gandhi International Airport, New Delhi.

Land Parcel earmarked at Khushkhera Extension has easy access to the

component supplier network through NH8

+ Approx 70 km from IGIA, Delhi

+ Approx 208 km from Jaipur Airport

+ Approx 82 km from Auto hub Alwar

Strategic Location

NCRRajasthan

NCR Region

To D

elhi

Bhiwadi

Alwar, RajasthanHost to over 100 automotive &

auto parts manufacturing companies

Punjab

Haryana

Delhi

Uttar Pradesh

Gujarat Madhya Pradesh

Rajasthan

Auto cluster of

Alwar, Bhiwadi, Neemranacatering to NCR Region

Kaharani

Pathredi/Chopanki

ALWAR

KhushkheraExtension

To J

aipur

NH 8

Neemrana

All maps are indicative.TapukaraExtension

Proximity to Automotive ClusterApproximately 60 per cent of passenger car production, 55 per cent of motor cycle production and 25 per cent of tractor production of India is concentrated in the National Capital Region (NCR) which is located within a radius of 200 km from Alwar district in Rajasthan.

It covers:

+ the largest two wheeler manufacturer in the world, Hero Honda Motors

+ the largest scooter manufacturer in India, Honda Motorcycle & Scooter India

+ the second manufacturing facility of Honda Siel Cars India Ltd., (HSCI) is spread over 600 acres

Rajasthan also has a relatively higher density of supplier base compared to several upcoming automotive production centers in India.

Rajasthan’s automotive hub in Alwar District has a higher density of automotive supplier companies compared to other upcoming automotive production centers in India. It has over 100 automotive companies representing all parts of the industry value chain from OEM’s to Tier 1 and Tier 2 automotive components suppliers.

+ Honda Siel Cars

India Ltd.

(HSCIL)

+ Honda

Motorcycle &

Scooter India

(HMSI)

+ Ashok Leyland

+ Eicher Polaris

Pvt. Ltd.

+ Hero Motocorp

+ HSCIL

+ Federal Mogul

Goetze

+ Shriram Pistons

and Rings Ltd.

+ Bestex MM India

Pvt. Ltd.

+ Amtek

+ Continental

Engines

+Bosch Ltd

+ OCAP

+ Hi-tech Gears

Ltd.

+ Amson

Automotive Ltd.

+ Ashoka Gears

+ MICO Bosch

+ Nissin Brake

India Pvt. Ltd.

+ Horizon

Industrial

Products

+ Balkrishna

Industries Ltd.

+ Chakradhali

Wheels Pvt. Ltd

+ Havells India

Ltd.

+ Motherson

Sumi Systems

Ltd.

+ Climate Systems

India Ltd.

+ Visteon

Automotive

Systems

+ National

Engineering

Industries Ltd.

+ Motherson

Automotive

Tech. &

Engineering

+ CNC Automotive

+Toyota Gosei

+Caparo Fastners

+ Paro Fastners

+ JCB India Ltd.

OEMs Engines and parts

Transmission and steeringparts

Suspensions,brakes andtyres

Electricals Others

*The automotive cluster in the state is well connected to the other hubs in neighbouring states like Noida (UP) & Gurgaon-Manesar belt in Haryana.

Eicher Polaris Private Limited

State Casting Forging/Gears Sheet Metal

Uttarakhand

U.P

Rajasthan

M.P

Gujarat

Maharashtra

AreaPantnagar

Haridwar

Lucknow

Bhiwadi (Alwar)

Neemrana (Alwar)

Jaipur

Pithampur

Baroda

Halol

Sanand

Nagpur

Amtek, Sunbeam casting,Rico Auto, Continental Engine

Bharat Forge, Mushashi Auto, Hitesh Gears, Sri Ram Group, Caparo

Jay Bharat Maruti, Krishna Maruti Ltd.

High density: Most suppliers within 200kmsfrom area

Medium density: Most suppliers within 500 kmsfrom area

Low density: Most suppliers within 1200 kmsfrom area

A qualitative* comparison with peer states

*indicative

The Government of Rajasthan through the Rajasthan State Industrial

Development and Investment Corporation (RIICO) is highly proactive

in providing land and supporting infrastructure within the State. It

has acquired around 72790.86 acres in around 324 industrial areas

throughout Rajasthan. It has earmarked two Land Parcels (within

NCR region) specifically for automotive investments. These land

parcels are suitable for large scale OEM investments.

The individual locations were chosen specifically in order to meet the

basic requirements of a typical large scale OEM manufacturer

including:

+ A location within 5-10 km of a National Highway route

+ Water availability of 1000 gallons per acre per day (subject to zero

discharge)

+ Power availability of 40-80 MW at peak capacity

+Customized incentive package to include competitive deal on land

price

+ Developed approach road to the site

+ Proximity to quality hospital (minimum 30-50 beds)

+ International private schools/colleges within a 20 km radius

Land Parcel I: KHUSHKHERA EXTN600 acres for 4 wheeler OEM

Land Parcel II: TAPUKARA EXTN150 acres for 2 wheeler OEM, Tractors & Farm equipments

Within the region, the Government of Rajasthan (through RIICO) has

also established a Japanese Zone in Neemrana containing mainly

automotive manufacturers and an Auto & Engineering Zone in

Pathredi that will include a Tool Room & Training Centre specifically

designed to support the automotive sector in the region. Some of

the major automotive companies have already started operations

here.

Japanese Zone in Neemrana

Land Parcels Map

Government of India has proposed setting up of a

Dedicated Freight Corridor (DFC) between Delhi and

Mumbai. DFC will be high axle new railway connectivity

with multi-modal linkages. Out of the total 1,483 km of

the length of DFC, 39% is falling in Rajasthan. It is

expected to be completed and commissioned by 2016.

The area of 150 km on both sides of the DFC will be

developed as the Delhi-Mumbai Industrial Corridor

(DMIC). 46% of the total DMIC Project Influence Area (PIA)

falls in the state and about 60% of the State’s area falls

under the PIA.

DFC and DMIC would provide easy access to the Northern

and Western markets. Major industrial zones such as

Jaipur, Alwar, Kota, Bhilwara, Dausa, Pah, Sikar and Sirohi

will tremendously benefit from the project.

Integrated Corridor Development

Industrial RegionsA

B

Bhiwadi-Neemrana

Ajmer-Kishangarh

Industrial AreasC

D

Jaipur

Bhilwara-ChittorgarhE Jodhpur-Pali

DFC Alignment

DMIC Influence

Junctions along DFC

End Terminals

Delhi

Haryana

Punjab

Gujarat

MadhyaPradesh

Rajasthan Jaipur

CBB

DDD

EEE

Phulera

Rewari

Dadri

Kota

Marwar Jn.

Palanpur

Gothangam

JN Port

Vasai Road

Jodhpur

Pirthala

AAAAAA

Maharashtra

B

A

Delhi-Mumbai

Industrial Corridor

Amli Road/Sabarmati

Vadodara (Makarpura)

Established Auto Clusters at a glanceAlwar

+ 150 km from Delhi

+ Industrial Area: 7,570 acres (approx.)

+ 87 large and medium scale industrial units including

about 250 auto component manufacturers

Bhiwadi

+ 75 km from Delhi

+ Industrial Area: 2,138 acres (approx.)

+ 3 industrial areas: Bhiwadi, Choupanki and Khushkhera

+ Home to around 100 operational units

+ A special Auto & Engineering Zone has been developed

at Pathredi

Neemrana

+ 116 km from Delhi

+ Industrial Area: 2,336 acres (approx.)

+ A dedicated Japanese Zone for industrial units at

Neemrana

Existence of leading players

The facility of Honda Siel Cars India

Ltd., (HSCIL) at Tapukara is spread over

600 acres and has an initial production

capacity of 60,000 units per annum.

"While evaluating Locations for our second plant, we

were looking for a location to accommodate a fully

integrated car manufacturing facility, with proximity

to world-class auto component manufacturers and

reasonably close to our existing plant at Greater

Noida, UP.

Most importantly, size of the land plot, existing /

planned infrastructure support, and availability of

the same as per our own plan and schedules, was

very crucial for the final location selection. All the

above requirements were optimally realized, as a

package, at Tapukara.

Also, as is expected, the whole process would

require flexibility, speedy response and accessibility

to all the relevant decision and policy making

authorities in the Govt., at all the levels. Govt. of

Rajasthan has been very proactive, responsive and in

a “partnering” mode, to resolve and expedite the

industry’s needs".

Raman Kumar Sharma, Sr. Vice President &

Director

- Honda Siel Cars India Ltd.

Honda Motorcycle & Scooter India (HMSI) is Honda Motor's wholly owned two-wheeler manufacturing subsidiary in India. HMSI’s second plant in India in located in at the Tapukara Industrial Area and has become operational from July 2011.

“India is the second largest motorcycle market in the

world. Rajasthan emerged as the most suitable state for

locating Honda’s second manufacturing facility based on

the proximity to north and west markets and the existing

plants.”

V. Sridhar, Vice President (Manufacturing), Honda

Motorcycle & Scooter India

Eicher Polaris Private LimitedEicher Polaris collaborated to set up its automotive

unit in Jaipur, the state capital of Rajasthan, for

manufacturing a new range of personal vehicles.

Rajasthan now has an established track record of

being the preferred location for automotive

industry because of its business-friendly

environment, strong infrastructure and market

access. Based on all of these factors, we at Eicher

Polaris, decided to set up our manufacturing base

in Jaipur. This also allows us the added advantage

of providing good quality of life to our employees.”

Radesh Verma, CEO, Eicher Polaris Pvt Ltd. ,

Gurgaon Head office

At Neemrana, Hero Motocorp has set up its fourth factory as

well as a Global Parts Centre. At Kukas, the company is

building a world class Centre of Global Innovation, with

various type of test- tracks and multiple labs, besides

facilities for prototype manufacturing and product design.

Nissin Kogyo through Nissin Brakes India started its

tenth manufacturing facility worldwide in Neemrana,

Rajasthan in 2008 to develop and manufacture disc

brakes for two and four wheeled vehicles.

“Our decision to invest in Rajasthan is a strategic one.

We are aware of Rajasthan’s growth potential and the

competitive advantages it offers. We look forward to a

long and mutually beneficial relationship with them”

Mr Akhiro Kubo, President & CEO, Nissin Kogyo

Company Ltd, Japan

JCB India is a wholly and subsidiary of

J.C. Bamford Excavators of United

Kindgom. JCB's 3rd manufacturing

plant in India is located in Jaipur,

covering over 750 thousand sq. ft.

Our chairman Lord Bamford asked us “why not

Rajasthan?” for our new unit. So amongst other states,

we looked at Rajasthan We ultimately settled on Jaipur,

the capital city of Rajasthan. Connectivity of the site is

excellent and the bureaucracy and political leadership

are very pro-active in assisting us through the entire

process of getting approvals.

Mr. Vipin Sondhi, Managing Director JCB, India Ltd.

Being a global-sized corporation with exciting future

plans, Hero Motocorp is constantly looking for

opportunities to scale its capabilities and capacities.

Rajasthan’s industrial climate and policies are very

favourable, and this state has become an investment

destination of choice for the company.

Three crucial projects with an initial outlay of Rs 1700

crore are in different stages of fruition. Each project is

being globally benchmarked in terms of architectural

design, manufacturing processes, HR practices and

sustainability.

At Neemrana, the company has set up its fourth factory

as well as a Global Parts Centre. Both facilities are ready,

and will be formally inaugurated in October 2014.

At Kukas, the company is building a world class Centre of

Global Innovation, with various type of test- tracks and

multiple labs, besides facilities for prototype

manufacturing and product design.

Pawan Munjal, Vice-Chairman & Managing DirectorHero Motocorp Ltd.

Existence of leading players

Cities and towns of Rajasthan offer excellent quality of life to its

residents.

+ Cities and towns are well planned, safe & un-congested and have

modern urban infrastructure. They offer a variety of economic

and modern housing options.

+ Excellent medical facilities are easily available even in small

towns. The state is now home to numerous specialty and super

specialty hospitals as well.

+ The cities have good educational institutions including public

and convent schools. Some of them like the MGD Girls School and

the Mayo College are institutions of national repute.

Undergraduate and postgraduate colleges and technical colleges

offer a variety of traditional and new age courses such as IIM, IIT,

AIIMS, BITS Pilani, NIFT, FDDI and Raffles University.

+ Supermarkets, brand stores, departmental stores and shopping

malls are commonplace. Cities offer a variety of recreations

options with multiplexes, restaurants, cafés, theatres, art galleries,

health centres, spas, clubs, pubs and discotheques.

+ Rajasthan has a very peaceful environment with one of the

lowest crime rates in the country.

Good quality of life

Rajasthan’s labour costs are considerably lower than in its peer States – Gujarat and Haryana. As per the ‘Salary Survey Primer 2011’ issued by Teamlease, entry level wages and salaries for engineers in manufacturing are 30-40% lower in Rajasthan than in its peer states. Further, Rajasthan’s automotive hub in the north of the State with its proximity to the NCR provides it with a good additional source of automotive-experienced management and labour.

Also, there has been a good industrial relations history without any major unrest between Labour unions and Management of industrial units.

Skilled and relatively Low Cost Labour

Rajasthan

Peer states

Comparative salary rates

Single WindowInvestment Clearance

+ Time bound approvals and clearances

+ Online submission of application

+ For projects of more than `1 crore, it is

mandatory to submit application only through

this system to render transparency to the

system

+ BIP is the nodal agency for this system.

An ordinance has been passed to give the

system a statutory framework.

A Welcoming &Supportive GovernmentGenerating higher levels of economic growth and prosperity through increased

private sector investment is top priority for the State of Rajasthan. The Bureau of

Investment Promotion (BIP) is the primary State Institution supporting inward

private sector investment in Rajasthan. BIP is committed to providing a

professional service and a timely response to current and prospective investors

in the State.

The Agency assists investors to objectively evaluate Rajasthan as a location for

their investment projects. It works with State and Local Governmental

authorities to expedite approvals, where necessary, to enable a fast start-up of

operations. The State Government has introduced a Single Window Investment

Clearance that serves as a single point interface between investors and various

government departments and ensures faster decision-making on applications

for licenses and permits. BIP is the nodal agency for the Single Window

Investment Clearance.

BIP’s Messageto InvestorsAs the IPA for Rajasthan, the Bureau of Investment Promotion (BIP) offers you a dedicated professional

support team for your investment in Automotive sector.

We are a One Stop Shop for all your investment needs, from project inception through completion to

investment aftercare.

Guided by the highest standards of business ethics, we promise to make a timely and effective response

to your enquiries and to provide information on all aspects of investment in Rajasthan.

We look forward to meeting with you soon and we warmly invite you to visit Rajasthan to see for

yourself the exciting opportunities available.

Please contact us using the details given on the back cover.

Bureau of Investment PromotionUdyog Bhawan, Tilak Marg, Jaipur 302005Rajasthan, India Tel. +91-141-2227274, 2227812, 2227713Fax +91-141-2227506www.investrajasthan.comE-mail: bip.raj@nic.in

Contact Officers: Commissioner, Investment & NRIs

Managing Director, RIICO Ltd.

Ms. Monica ChoudharyAuto Sector Expert, BIP

Knowledge Partners

RIICO Ltd., Udyog Bhawan,Tilak Marg, Jaipur 302005. Tel. +91-141-5113201, 2227751-55Fax. +91-141-5104804www.riico.co.in E-mail: riico@riico.co.in