From the Government of Maharashtra-MIDC

The Business Newsletter | 69th Edition – January 2016

MahaConnect

ContentsFrom the Desk

Food Processing Sector

District Focus: Nashik

Events/ Investment Plans / Initiatives

Feedback

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The Indian food processing is the one the largestindustry in the country with contribution of 14% tothe GDP. With plans for development of food parksacross India, this industry is to get further boost inthe next five years. Government of Maharashtra hastaken policy decision to give additional incentives tothis industry under the Industrial Policy 2013 and atthe same time , build infrastructure withdevelopment of Food Parks. The newsletter coverthe opportunities that are available for the industryto invest in Maharashtra

This newsletter will give a glimpse of the NashikDistrict. Nashik is well known as the industrialdistrict with presence of auto , textile, defence andengineering industry. Nashik is well known as thewine capital of India. The district is rich in agriculturedue to its favourable climate conditions for growingvarious types of fruits, vegetables, cereals, pulsesand food grains. The newsletter throws light on theopportunities available in the district to invest in keysectors.

MIDC has always believed in having continuousinteraction and feedback with the industries. In thismonth, we had many interactive session with theindustry and foreign delegates.

MIDC met a delegation from Japan representing the

Bank of Tokyo Mitsubishi. The event was organizedto promote Maharashtra as the prime industrialdestination and take up queries and lead adiscussion with the delegates on the investmentopportunities available at SUPA and other industrialareas of MIDC. This newsletter will cover the eventsin detail.

In the run up to the “Make in India” week , weorganized road shows at different parts of the stateand at Sri Lanka to create awareness of the eventand the ensure maximum participation from allquarters. This newsletter will give the highlight of theroadshows conducted.

We keenly look forward to your suggestion andfeedback in making MahaConnect more enrichingfor our readers. Please write to us atmahaconnect@midcindia.org. We also invite you tovisit our website www.midcindia.org for furtherdetails and opportunities the State provide in therealm of setting up industries in the State.

Regards,Bhushan Gagrani (IAS), CEO-MIDC

From the Desk

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Food Processing Sector

Index

The Food processing industry accounts for 32percent of the country’s total food market. TheFood Processing industry is one of the largestindustries in India and is ranked fifth in terms ofproduction, consumption, export and expectedgrowth. In FY15, contribution of food processingindustry to India’s GDP through manufacturingstood at 14 per cent.. Between April 2000 andMay 2015, FDI in agriculture and food processingstood at USD 11.51 billion. Government of Indiahas approved 50 food parks and planning to setup 30 such parks across country. Government ofIndia has also established 6 fully equipped agri-export zones (AEZs) to boost agriculture and foodprocessing exports. As per latest data available,food processing sector is expected to reach USD258 billion in FY15.

In the food processing sector, Maharashtra hasas many as 16,512 small and medium and 322large scale food processing units. The foodprocessing sector in the State has attracted INR.1039 crores worth of Foreign Direct Investmentthrough 173 projects since 1991.Some of the bigcompanies from the food processing sectorinvested in Maharashtra are Coca-Cola, HUL,Pepsico, Cargill, ITC, ParleAgro, Godrej, Marico,Tetrapack amongst others.

Source : Ministry of Food Processing Industries (MOFPI) ,Economic Survey of Maharashtra 2013-14

7,5441,492

9,0363,0172,644

7884,2734,617

8,83476,901

Total CerealsTotal Pulses

Total FoodgrainsRice

MaizeBajra

SoyabeanOilseeds

CottonSugarcane

Maharashtra Total Agriculture production – 2013-14 in ‘000 MT

188.67 170.21 401.46

3,982.22

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

2010-11 2011-12 2012-13 2013-14

FDI in FPI (in USD million)

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Food Processing SectorFood Processing Hub in Maharashtra

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RatnagiriSangli

OsmanabadLatur

Nashik

PuneNanded

Aurangabad

Ahmednagar

Nagpur

Food Processing Hub

Major Food Processing Hubs

• Food Parks : Eight Specialized Food Parks with facilities like coldstorage , warehousing ,advanced packaging ,tetra packaging & foodtesting laboratory. They are located at : Butibori (Nagur),Shandra(Aurangabad),Nevasa (Ahmednagar),Latur , Osmanabad,Nanded ,Chiplun (Ratnagiri)

• Wine Parks : MIDC has set up three Wine parks at : Vinchur , nearNashik , Addn Vinchur near Nashik , Palus near Sangli

• Floriculture : Three Floriculture Parks developed as world classfacility for production of flowers of different types and varieties .MIDC provides nursery , post harvest , infrastructure and logisticfacilities. The parks are located in Talegaon (Pune),Mudkhed(Nanded) and Osmanabad.

Dedicated Institutes• Central Food Technology Research Institute (CFTRI) , Mumbai

cater to the technology transfer and business development servicesto the Food Industries and allied organizations in Mumbai as well asthe Western region of the country

Industry AssociationsThe Maharashtra Agro Industries Development Corporation Ltd (MAIDC) : is an organization to promote moderation of the agro sector through mechanization Address : Krushi Udyog Bhavan, Dinkarrao Desai Marg, Aarey Milk Colony, Goregaon East, Goregaon East, Mumbai, Maharashtra 400065

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Food Processing SectorGovernment of India Initiatives Private Players in Maharashtra

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100% FDI is allowed in the food processing sector under the automaticroute.

Rationalization of tariff and duties relating to food processing sector To promote investment in Mega Food parks, Food parks are included in

the infrastructure category Government of India has approved 50 food parks and planning to set up

30 such parks across country

Government of Maharashtra InitiativesState announced Package scheme of Incentives 2013 for new industrialunits/expansion/diversification units to promote industrial development. .For mega/ultra mega projects, incentives will be decided by high powercommittee. Along with the incentives offered PSI , additional incentives isoffered for Food processing industry through PSI 2013 and Grapeprocessing policy which includes :

• 10% additional incentive on top of Investment Promotion Subsidy isprovided by the state if the project creates double the employmentrequired for the eligibility.

• For wine industries , concession for excise duty at 25% of theproduction expenditure incurred by units

• Preferential Area of Wine Industries enabling to requisite grant loan• Simplification in system for license/permission for wine production by

empowering collector to issues license within 30 days• Establishment of Wine Institute for R&D , training and quality of wine

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Nashik Snapshot

District Focus: Nashik

Demographic Snapshot

Population (thousands) 6,107

Literacy Rates (%) 82.31

District Income (Crore) 59,369

Geographic Snapshot

Area ( thousand Sq Km) 16

Talukas 15

Major Cities 25

Industrial Snapshot

No. of Factories 2105

Total Factory workers 76,957

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District Focus: Nashik

• Nashik is well known industrial district having presence of auto,engineering and electrical industries

• Also , known as the “wine city” of India

• The district is completely landlocked being surrounded by Thanedistrict on the West and South West, Ahmednagar district on thesouth, Aurangabad district on the South East and East, Jalgaondistrict on the East and North East, Dhulia on the North and Suratand Dang districts of Gujarat on the West.

Nashik District

Road

The total road length in Nashik district is 13971 kms.Mumbai Nashik expressway (NH-3) is a 150 km longexpressway connecting Nashik to the capital city Mumbai.It also connected to Pune via the Pune National Highway(NH-50)

Physical and Social Infrastructure

Railways

Nashik Road railway station is one the major revenuegenerating station of the division. It is connected by railto major cities such as Mumbai, Delhi,Nagpur,Kolkata,Kanpur,Guhawati among other major cities of thecountry.

Airport

Nashik airport will soon operate from the terminal handled byHAL at Ojhar, Nashik. This new terminal will start servicesfor domestic and international airlines and will also allow formovement of cargo.

Education

Nagpur district has 48 ITI and ITC to cater to the skillrequirement of the heavy industries. It has 46 technicalInstitutes and 46 higher educational institutes to cater tothe growing demand of industries for skilled and highlyskilled resources

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District Focus: NashikInvestment Opportunities

Key Industry Players

Food Processing Auto & Auto Component Defence

• Nashik is famous for its wine parks with around 20 outof total 34 wine parks of the state established here

• Due to significant agricultural base , it has a thriving foodprocessing industry with presence of industry majorssuch as Fortune foods, Jain Irrigation, Sula Vineyard,Capital Foods , Marico

• The winery cluster at Vinchur has around 40 units withturnover of INR 950 mn

• With increased connectivity and betterinfrastructure , Nashik has also developedas an prime destination for Auto and AutoComponent Industry.

• Auto makers such as Mahindra & Mahindraand auto component makes such asKirloskers, MDS Switchgears, MotorsIndustries , Perfect Circles , XLO Indiaamongst other component makers havedeveloped in this region

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• HAL , the state owned aeronauticalenterprise, has one of its productionunit in Nashik which is involved indesign, manufacture, andrenovation of wide range of aircrafts

• MSMEs such as Dynamatictechnologies , BOSCH amongstothers are manufacturing thedefence component/raw materialfor the HAL assembly unit

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Maharashtra Updates: Investment Plans/ Initiatives / Events

Maharashtra has traditionally been an attractive destination for Japanesecompanies. MIDC, recently welcomed a delegation from the Bank ofTokyo Mitsubishi UJF at the JETRO office.

Mr. Pratap Jadhav , Dy. CEO MIDC , first the addressed the delegationand welcome them to the ‘magnetic’ state of the Maharashtra. Mr. Jadhavmade a presentation to the delegation on the Industrial ecosystem inMaharashtra. In his presentation, he also showcased the strengths ofMaharashtra and why many industries have chosen to set up theirmanufacturing base in the state. Later, he enumerated the roles of MIDCin facilitating the investor for a suitable land and the progress of the SUPAMIDC industrial estate which is a dedicated Japanese zone. He alsopointed out the steps taken by the Government of Maharashtra for Easeof Doing business and single window created for Japanese companies.

Mr. Rajale, Technical Advisor, MIDC then addressed the delegation andillustrated the incentives offered by the Government of Maharashtra to theindustries under the Package Scheme of Incentives. Following which , thedelegation had a deep discussion with the MIDC official on the SUPA andother Industrial areas promoted by the Government of Maharashtra.

The MIDC expressed their gratitude to the delegation in taking interest inthe State and assured them the full support to their investors who wish toinvest in the state.

Japan Delegation Meet

January 19 , 2016

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Mr. Pratap Jadhav, Deputy CEO, MIDC and Mr Vishwanath Rajale, Technical Advisor , MIDC having discussion with the Japanese delegates

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Maharashtra Updates: Investment Plans/ Initiatives / Events

Roadshows were conducted by the official of the Industries Department,(GoM), Directorate of Industries (GoM) and MIDC at different cities of thestate. The objective of these roadshows was to create awareness amongthe business community and at the citizens at large about the Make inIndia Week. The Make in India week will be organized from 13th Feb to18th Feb 2016.The Make in India is initiative by the Government of Indiato make India a manufacturing hub. The Make in India week willshowcase the innate strength of India to be a successful globalmanufacturing centre and the opportunities available to various industriesto invest in India.

The Government of Maharashtra will have a Maharashtra pavilion toshowcases the strengths of the state , policies that driving and attractingthe industry to the state, and ocean of opportunities available in the state.Maharashtra has organized “Maharashtra Investor Summit” to bringtogether industry caption, Government heads and official ,& Industryrepresentatives to have a discussion on the road ahead for theMaharashtra to reiterate its “numero-uno” position as the most preferreddestination in the country and how Maharashtra can lead the way forwardin India’s manufacturing story. Also , seminar would also have industryrepresentation sharing their experience of doing business in Maharashtraand the competitive advantage Maharashtra has to offer.

Government of Maharashtra will also showcase the progress on theAurangabad Industrial Township in the DMIC node which has beenbranded as AURIC derived from AU(gold) and launching of its website.

Roadshows - Make in India Week

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Roadshow at Kolhapur Roadshow at Pune

Roadshow at NagpurRoadshow at Nashik

Roadshow at Sri Lanka Roadshow at Aurangabad

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FeedbackFor feedback, write to us at: feedback@midcindia.org

Maharashtra Industrial Development CorporationUdyog Sarathi Mahakali Caves Road, Andheri (E), Mumbai – 400 093Phone: +91-022-26870052/54/73; Fax: +91-022-26871587Email: mahaconnect@midcindia.org

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