“tamil nadu global manufacturing hub: strengths and...
TRANSCRIPT
Presentation on
“Tamil Nadu – Global Manufacturing hub:
Strengths and Opportunities”
M Velmurugan IES
Executive Vice Chairman
Guidance Bureau
Industries department
Government of Tamil Nadu
by
Presentation Structure
4Tamil Nadu: Growth story
4Competitive strengths and Opportunities
4New Initiatives by Government
Tamil Nadu Growth Story
Tamil Nadu in Global economy
• Tamil Nadu’s GSDP in 2014-15: INR 9767.03 billion (US $
150.3 billion). On PPP basis, GSDP:US $ 381 billion (IMF
data)
• Second largest economy among Indian states
• On Global scale, Tamil Nadu will be ranked 46th largest
economy on PPP basis). – bigger than Romania, Ukraine,
Vietnam, Bangladesh, New Zealand, Norway, Finland,
Denmark, Sri Lanka, Bulgaria, Uzbekistan, Afghanistan,
etc. In nominal terms, TN is ranked 58th.
• One of the fastest growing State economies with an average
growth rate of 9.75% in the last 9 years
• One of Top Three FDI destinations among Indian states
• Tamil Nadu Vision 2023 target to place Tamil Nadu in the
league of Upper Middle Income countries
0
2
4
6
8
10
12
14
16
7.25 7.40
Tamil Nadu India
India and Tamil Nadu: GDP Growth
rates at constant prices
Average growth rate between
2004-05 to 2014-15
India 7.58%
Tamil Nadu 9.29%
Source: Economic Survey 2014-15
Sectoral composition of GDP (2013-14)
% share
13.95
26.12 59.93
India
Primary Secondary Tertiary
7.39
30.32
62.29
Tamil Nadu
Primary Secondary Tertiary
Per capita Income at constant prices 2013-14: Select states
7
133427
114392
112664
106831
95361 92638 84709 81397
70059 65974
51798
36250 31199
0
20000
40000
60000
80000
100000
120000
140000
160000
Among major states, Tamil Nadu is ranked Second
Rank of Tamil Nadu among Indian states Parameter Rank of Tamil
Nadu
Urbanization rate 48.5% First
Size of State Economy (GSDP) at constant
prices (2014-15) Rs. 5,15,458 crores Second
Per capita Income at constant prices
(2014-15)
Rs.112664 Second (among
major States)
Number of Factories 36,869 (2012-13) First
Invested Fixed capital in factories sector Rs.1,87,242.33 crores
(2012-13)
Third
Number of New MSMEs filed (2007-14) 437065 First
New MSMEs in 2013-14 alone 1,16,393 First (32.04%)
Number of workers employed 19,64,169 persons First
Value of Industrial output produced Rs.6,22,307.58 crores Third
Net value addition in factories sector Rs.93,947.24 crores Third
Exports (2013-14) Rs.2,15,400 crores Third
FDI attracted (April 2000 to June 2015) Rs.94,595 crores
(US $ 17.94 billion)
Third
Source: Central Statistical Organisation – CSO and Department of Industrial Policy and Promotion (DIPP)
State’s share in number of factories, higher than any
other state
State’s share in India’s industrial
workforce
2nd largest contributor to India’s GDP
Tamil Nadu – India’s economic powerhouse
Contribution to India’s industrial output
Contribution to India’s renewable energy capacity, higher than any other state
#1
India’s most urbanized state by geography and population
$€£¥
Ranks 3rd in terms of cumulative FDI inflows (USD 12.7 billion from 200o to 2014)
Number of India’s technical universities, higher than any other state
Infrastructure Profile of Tamil Nadu • Tamil Nadu – the most Urbanised state
• Power generating capacity: 22000 MW – second largest
• Communication: Largest Bandwidth and High Teledensity – highest in
India – 14.8 Tbps (3 Submarine cables: (SEA-ME-WE-4, i2i, and TIC)
• 20 Industrial Parks, 45 Notified Special Economic Zones – The largest
• High Road & Rail network:
• Port logistics: 4 modern sea ports, 23 minor ports
• Well-developed social infrastructure: Health care, education, Housing,
etc
Density per 100 km2 of land area Tamil Nadu India
Road density 177 kms 148 kms
Rail density 32 kms 19.27 kms
FDI attracted by Tamil Nadu Period Cumulative FDI
in US $ millions
Rank of Tamil Nadu
From April 2000 to April 2011 7341 Fourth
From April, 2000 to June, 2015 17,938 Third
Incremental FDI inflows during
May 2011 to June 2015
10597
(US $ 10.6 billion)
Source: Department of Industrial Policy and Promotion (DIPP), publication titled FDI Statistics
Investment (domestic) attracted by Tamil Nadu Period Rs.in crores
2011 73306
2012 21253
2013 27380
2014 14598
January to June 2015 16289
Total Rs. In crores 152826
Source: Department of Industrial Policy and Promotion (DIPP), publication titled SIA Statistics
As part of GIM-2015, Govt of Tamil Nadu attracted Rs.2.42 lakh cores
Tamil Nadu GIM - 2015 • GIM with- Pioneering initiative that is set to place Tamil Nadu in a
higher growth orbit
• GIM – a resounding success far exceeding our targets and expectations
• As against target of Rs.1.0 lakh crores investment, GIM attracted
Rs.242160 crores in 98 projects
• Employment potential in these 98 projects is: 4,70,065
• More than 50% of the investments proposed in Southern districts
• Tamil Nadu set to become add about 18000 MW of power
(solar+Thermal) making the State power-surplus.
Sector No of MoU’s Investment Employment
Manufacturing 50 1,04,286.00 1,14,455
Energy 15 1,07,136.00 15,850
MSME 16,532.67 ---
IT and ITES 17 10,950.00 2,05,500
Handlooms and Textiles 10 1,954.83 65,010
Animal Husbandry & Fisheries 4 500.00 500
Agro based 2 800.00 68,750
Total 98 2,42,160.00 4,70,065
Guidance Bureau
Product % share
of TN in
India
Automobiles
(cars only)
36%
Commercial
vehicles
35%
Auto parts 33%
Leather products 40%
Textiles 33%
Spinning capacity 47%
Powerlooms
capacity
20%
Software & ITES 11.6%
Infrastructure Profile of Tamil Nadu • Tamil Nadu – the most Urbanised state
• Power generating capacity: 22000 MW – second largest
• Communication: Largest Bandwidth and High Teledensity – highest
in India – 14.8 Tbps (3 Submarine cables: (SEA-ME-WE-4, i2i, and
TIC)
• 20 Industrial Parks, 76 Special Economic Zones – Third largest
• High Road & Rail network:
• Port logistics: 4 modern sea ports, 23 minor ports
• Well-developed social infrastructure: Health care, education,
Housing, etc
Density per 100 km2 of land area Tamil Nadu India
Road density 177 kms 148 kms
Rail density 32 kms 19.27 kms
CHENNAI
TUTICORIN
COLACHEL
ENNORE Ports of Tamil Nadu
CUDDALORE
NAGAPATTINAM
PAMBAN &
RAMESWARAM
MANAPPADU
THIRUKADAIYUR
KATTUPALLI
VALINOKKAM
Chennai the most efficient
port of India MUGAIYUR
• Tamil Nadu – pioneer in promoting Technical education in Private
sector
• Annual Turn-out: More than 1.0 million Graduates (Engineering,
Arts & Science), Diploma holders and ITI workers
• Abundant availability of skilled manpower at competitive wage
costs
• Wage cost of a skilled worker: about US$ 150 to 180 per month –
Less than one US$ per hour
501 Polytechnics Annual turn-out:
188456 technicians
1552 Industrial training Institutes & schools:
Annual turn-out: 116551 workers / operators
572 engineering colleges - Annual turn-out
262,164 Engineering graduates
Skilled manpower availability in Tamil Nadu
Fortune 500 companies in Tamil Nadu
USA Ford, DELL, Flextronics, Sanmina-SCI, Delphi, Visteon,
Caterpillar, Honeywell, Johnson & Johnson, Citigroup,
Pepsi, Dow Chemical co., Coca-Cola, Accenture, Hewlett-
Packard, Microsoft, IBM, Johnson Controls, Emerson,
Terex corporation and Motorola
Japan Nissan, Mitsubishi, Yamaha, Bridgestone, Hitachi, Komatsu,
Panasonic, Toshiba, Mitsui, Marubeni, Fujitsu, Sumitomo,
Mizuho, NEC Corporation,
Germany BMW, Daimler, Bosch, Siemens, Bayer, BASF
France Renault, Michelin, Saint Gobain, Alstom,
South Korea Hyundai, Samsung, POSCO, Lotte
Finland Nokia,
Taiwan Foxconn,
China Huawei,
Switzerland ABB
At present, 54 Fortune 500 companies have base in Tamil Nadu
Tamil Nadu competitiveness: Six Sigma Advantage
Manufacturing Total Cost
competitiveness
Excellent Port Logistics Well-developed
Infrastructure: Power, roads,
communication, etc
Fastest growing State economy
Average Growth rate: about 10%
Mature Industrial base:
Leader in automobiles & parts,
Electronic hardware,
Textiles, IT, etc
Largest producer of skilled
Manpower In India
Guidance Bureau
23 October 2014
Draft
Tamil Nadu – A Broad based Economy with presence of multiple sectors
Auto and Auto Components
Textiles Chemicals and Petrochemicals
Heavy Engineering
Electronics hardware
Pharma and Biotechnology
IT & ITeS Aerospace
Agro and Food Processing
Skill Development
Automobile Industry in
Tamil Nadu • Currently, Chennai is ranked as one of Top 10 Global auto
hubs
• Chennai is India’s largest auto hub – Currently, Chennai
has installed capacity to produce one car every 20
seconds (3 cars per minute) and one commercial vehicle
every 90 seconds
• Chennai is poised to emerge as World’s largest auto
cluster
• Chennai accounts for about 33% of India’s auto parts
production
• More than 700 Tier-I and Tier-II auto suppliers in Chennai
alone – Some of them prestigious Deming award winners
Automobile Industry in Tamil Nadu
• Chennai – the largest auto cluster in India
• Installed annual capacity of Chennai:
Cars: 14,00,000 ( 1.40 million )
Commercial Vehicles: 361,000
Motocycles 3.7 million
SUV: 1,50,000
• Chennai is one of Top 10 centres in the world for automobile
manufacturing
• Chennai has the best eco system of for automobile manufacturing
Largest auto components cluster – 35% of India’s capacity
Largest pool of skilled manpower for automobile industry
Port Logistics from 4 ports
Advanced Testing, R&D and Homologation facilities
Attractive Fiscal incentives
Cost competitiveness
Guidance Bureau
Chennai: India’s largest Automobile Cluster
Automobile & Auto Components
Name of the company Product Installed
Capacity
Land
allotted
Ford (2 plants) Cars 2,50,000 360 acres
Hyundai (2 plants) Cars 7,00,000 537 acres
Nissan Cars 2,00,000
640 acres Renault Cars 2,00,000
BMW Cars 40,000 40 acres
HM-Mitsubishi Cars 40,000 120 acres
Daimler Commercial Vehicles 71,000 389 acres
Ashok Leyland Commercial Vehicles 1,00,000 260 acres
AL-Nissan Commercial Vehicles 1,90,000 400 acres
TAFE Tractors 60,000
TVS Motor Motorcycles 1.7 million
Royal Enfield Motorcycles 200,000
Yamaha Motorcycles 1.8 million 128 acres
Mahindra and Mahindra SUVs and Cars 1,50,000 450 acres
Caterpillar, Komatsu, Doosan *** Earthmoving machinery
Automobile Industry in Chennai
23 October 2014
Opportunities in the Auto industry in Tamil Nadu
1
Passenger Vehicles, Passenger Cars, Utility
Vehicles, Multi-purpose vehicles
Two Wheelers: Mopeds, Scooters, Motorcycles
Three Wheelers: Passenger and Goods carriers
Commercial vehicles: Light, Medium and Heavy
commercial vehicles
Auto ancillaries/auto parts manufacturing
Auto parks/industrial infrastructure development
on PPP mode
23 October 2014
Draft
Tamil Nadu has over 23 Electronic Hardware Technological Parks located in major IT centric Special Economic Zones(SEZs) of Sriperumbudur, Oragadam, and Mahindra World City.
13
46%
17%
14%
12%
3%
1.76%
1.54%
0.96%
0% 10% 20% 30% 40% 50%
Tamil nadu
Karnataka
Uttar Pradesh
Maharashtra
Kerala
Delhi
Gujarat
Andhra Pradesh
Share of Top States in Electronic Hardware Exports of India
Tamil Nadu stands 1st in terms of Electronic
exports in India
Electronics Hardware - Segmental Presence of Major Industrial houses in Tamil Nadu
Electronic Hardware
Information Technology
Tamil Nadu: The Electronic manufacturing Ecosystem
Nokia has a Global support services centre operating in Chennai employing over 1800
persons as on Sep 2015 Foxconn has two facilities manufacturing LED TV and Hardware
servicing.
23 October 2014
Draft
271 approved IT parks Full fledged wide area
network and data centre 15 operational Special
Economic Zones in state
TIDEL Park, with a total area of 1.28 million sq. ft. is the largest in India
Over 1700 software units in the state
Land identified for setting up
International Institute of Information
Technology (IIIT)
0
2
4
6
8
10
12
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13(E)
IT/ITES exports – USD billion
7.1 9.3
State Government is establishing an IT Investment Region near Chennai covering an area of 1600 sq. km with a total investment of USD 1.7 billion. Land acquisition has been
initiated
IT & ITES sector in Tamil Nadu
Tamil Nadu is the second largest software exporter in the country
19
0
10000
20000
30000
40000
50000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Tamil Nadu Software exports Rs. crores
23 October 2014
Draft
Opportunities in Electronic Hardware Sector in Tamil Nadu
14
Photovoltaic panels
Computer peripherals
Mobile handsets
Communication hardware and
networks Semiconductor
Medical electronics
23 October 2014
Draft
Share of Major Industries in terms of Total Output in Tamil Nadu (2011-12)
Top 3 State wise Industrial Output Contribution to the Textile sector in India 2011-12
2nd Largest
Contribution to the total Industrial Output of Tamil Nadu
1st In Apparel Industry and 2nd in
Textile Industry in terms of Total Industrial Output Contribution
Textile Sector in Tamil Nadu: Industrial Overview
3
19.66%
10.07%
9.68%
11.58%
7.70%
6.02%
5.59%
29.70%
Automobiles
Coke & refined PetroleumProductsBasic Metals
Textiles & Apparels
Food Products
Machinery & equipment
Fabricated MetalProductsOthers
Source: Ministry of statistics & program Implementation
17.2%
27.0%
16.8% 17.1%
13.0% 11.2%
Textiles Wearing apparels
Guja
rat
Tam
il N
ad
u
Mahara
shtr
a
Tam
il N
ad
u
Hary
ana
Karn
ata
ka
23 October 2014
Draft
0% 20% 40% 60% 80% 100%
Spindles
Rotors
Knittingmachines
Looms
Compositeweaving
Installed capacity as a % of total capacity in India (Non SSI units)
Tamil Nadu Rest of India
Textile Industry in Tamil Nadu: Facts and Figures
2
20% contribution to India’s total Export of Readymade Garments
58% of total textile Mills in India are present in Tamil Nadu (inclusive of SSI)
Textile Industry in Tamil Nadu accounts for ~17% of Total Invested Capital in all the industries
Constitutes 28% of total employment in India’s textile and Apparel sector
Textile and apparel sector together provide employment to 35% of population in the State
• Tamil Nadu houses more than 40% of total installed capacity of Spinning industry in India • Tiruppur(Coimbatore District) the biggest Knitting Cluster (90% exports of Knitwear from
India ) in the Country is located in Tamil Nadu • 35-40% contribution to total Yarn Production in India in last 5 years • There are 2614 Hand Processing Units (25% of total units in India) and 985 Power Processing
units (40% of total units in India) in Tamil Nadu
Advantage
Tamil Nadu
Textile Sector
Renewable Energy - Indian Scenario Renewable energy sources currently contribute 30% of the installed capacity
and is expected to increase to 34% by 2017
176.1
4.8
40.8
21.1
3.8
4.0
0.1 2.6
72.5
Installed Capacity Mix in India (GW), 2014
Thermal Nuclear Hydro Wind Power
Small Hydro Power Biomass Power Waste to Power Solar Power (SPV)
• For the period 2012-17, the target capacity addition for power sector is 118
GW out of which the target addition for renewable energy is 30,000 MW. This
implies that 25% of the planned capacity addition is in the renewable
segment
Thermal. 68%
Hydro. 18%
Nuclear. 2% Renewable
. 12%
Fuel wise generation mix, 2013
Thermal. 63%
Hydro. 21%
Nuclear. 3%
Renewable. 13%
Fuel wise generation mix by 2017 – projection
Renewable Energy - Tamil Nadu
Tamil Nadu is a pioneer in harnessing its renewable energy potential in India
as compared to its peers.
9084, 44%
562, 3% 516, 2%
2284, 11%
7253, 35%
659, 3%
211, 1% 112, 1%
10519, 51%
TN Power Capacity (MW) - 2014
Thermal Nuclear Gas based Hydro
Wind Power Cogen Biomass Power Small Hydro Power
Source: CAE, Tamil Nadu - Energy Policy Note 2014-15, * includes hydropower
#1 state in renewable energy capacity
among all the Indian states #5 global installed capacity of wind power generation units and also #1 in India. 40%* of the total power capacity from renewable energy sources #2 installed capacity of cogeneration power plants in the country
Renewable Energy Sector
S.
No.
Areas Annual
Average
Wind Speeds
1 Palghat Pass,
Coimbatore, Erode 18-22
2 Shencottah Pass,
Tirunelveli, Tuticorin 18-22
3 Aralvoimozhi Pass,
Kanyakumari 19-25
4 Kambam Pass ,
Dindigul district 19-25
Palghat Pass,
Coimbatore, Erode 18-22
The sale of wind power is through a fixed tariff regime where the regulatory commission fixes tariffs through cost plus framework
Wheeling charges for transmission of power using the network is at 5% of the energy wheeled
There is no limitation on the nature of the entity that invests in wind power segment. Any company/corporate body/association of individuals can invest in a wind power generation unit.
Ramanathapuram
Theni
Tirunelveli
Kanyakumari
Thoothukudi
Dindigul
Coimbatore
Wind Power in Tamil Nadu Wind power Passes in Tamil Nadu
The regulations allow for sale to third parties through open access.
Tamil Nadu installed capacity:7252.61 MW
• The state has an outlay of USD 9170 million for solar energy sector alone.
Investment Outlay
• Mandatory 6% solar power consumption for all high Tension customers including SEZs, Industries which have committed access to 24x7 power, IT Parks, telecom Towers, Colleges and schools, buildings with a built up area of 20,000 MW or more
Solar Purchase Obligation
• As per the state industrial policy which includes • Investments made in power plants to be included for the purpose of structures packages • Electricity tax exemption for sale to utility & captive sales for 5 years
Tax Concessions
• A total capacity of 1500MW to promote development of solar capacity (of varied capacities ranging from 1MW to over 10MW). Parks with capacity of 50MW will be setup in 24 districts out of the 32 districts of the state.
Other features
Opportunities in Tamil Nadu for Renewable Energy
Solar Power in Tamil Nadu
Development of wind-solar hybrid
installations and biomass projects
Development of solar PV manufacturing
capabilities
Offshore wind projects development
Development of large scale solar and wind
parks
Tidal and geothermal projects first at pilot
scale, and then at commercial scale
Opportunities in Tamil Nadu for Renewable Energy
23 October 2014
Draft
Tamil Nadu: an emerging chemical growth centre
• A diversified manufacturing base with about 2,500 chemical and petrochemicals factories, providing employment to over 120,000 people
• A USD 15 billion industry as in 2012-13, accounting for 7% of the total national output
• Strong presence in the export market in sub-segments such as Dyes, petrochemicals and Agrochemicals
6
2006-07 2007-08 2011-12
Basic chemicals 583 628 1315
Other chemicals andallied products
766 681 853
0
200
400
600
800
1000
1200
1400
State emerging as a major exporter of basic chemicals – (USD million)
CAGR - 18%
Chemical clusters Upcoming PCPIR
Refineries Ports with POL facilities
Key consuming industries – automobile, textiles, electronics, etc.
Chemicals and Petrochemical Sector
23 October 2014
Draft
Some of India’s leading chemical and petrochemical manufacturers have a base in Tamil Nadu
Refineries
(17.5 MMTPA)
CPCL Manali
NOCL Cuddalore
CPCL Narimanam
Glass manufacturing
(1 MMTPA)
Saint Gobain
Asahi
Harsha Group
Petrochemical complexes (1 MMTPA)
CPCL Manali
CPCL Narimanam
Chlor Alkali plants
(1MMTPA)
SPIC
DCM Shriram
Chemplast Sanmar
DCW
Soda Ash plants
(0.2 MMTPA)
Tuticorin Alkali
SIEL
Chemical Fertilizer plants
(1.94 MTPA)
MFL, Manali
SPIC, Tuticorin
TACL, Tuticorin
Container handling
(14 MMTPA)
Chennai
Tuticorin
Ennore
7
New initiatives of Government of Tamil Nadu
• Vision Tamil Nadu 2023
• Tamil Nadu Infrastructure Development act, 2012
• Tamil Nadu Infrastructure Development Board
• Tamil Nadu Infrastructure Development Fund
• Creation of Land Bank: 53000 acres
• Promotion of New industrial parks
• Skill Development initiatives
• Single window facilitation
• New Industrial Policy 2014
• Automobile and Auto parts Policy 2014
• Biotechnology Policy 2014
• Global Investors Meet 2015 on 9th and 10h September 2015
What Government of Tamil Nadu offers to Investors?
Land - in Industrial Parks
Structured Incentives package of support including fiscal
incentives for projects depending on investment size as per
Industrial Policy 2014
Quality and reliable infrastructure support including Power and
Water supply, roads, communication, waste disposal, etc
Single Window Facilitation & In-principle composite approval on
a fast-track mode within 30 days
Dedicated Project Facilitation Committee will be formed by
Government that will escort project.
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4
4
4
4
Useful Contacts
Thiru C.V. Sankar, I.A.S.
Principal Secretary to Government,
Industries Department,
Secretariat,
Chennai - 600 009. INDIA
Tel: 91-44-25671383
Fax: 91-44-25672727
E-mail: [email protected]
URL: http://www.tn.gov.in
Thiru M.Velmurugan,
Executive Vice Chairman,
Tamil Nadu Industrial Guidance & Export
Promotion Bureau, (Single window office)
19-A, Rukmani Lakshmipathy Salai,
Egmore, Chennai - 600008. INDIA
Tel: 91-44-28553118
Fax: 91-44-28588364
E-mail: [email protected]
URL: http://www.investingintamilnadu.com
Thank You