From the Government of Maharashtra-MIDC

The Business Newsletter | 71th Edition – March 2016

MahaConnect

ContentsFrom the Desk

Aerospace and Defence Sector

District Focus: Aurangabad

Investment Plans/Initiative

Feedback

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Maharashtra has a rich industrial heritage. The stateis a leading contributor to the manufacturing sectorin the country. With the presence of prominentDefence public sector undertakings and Defenceresearch institutes , there lies huge opportunities forthe defence companies to invest in the state. Thisnewsletter showcases the contribution of this sectorand investment potential in the state.

This newsletter will give a glimpse of theAurangabad District. Aurangabad is well knownindustrial hub of the state. The district has wellestablished industries from various sectors such asAuto, Pharmaceutical, Biotechnology, IT/ITesamongst others. The newsletter throws light on theopportunities available in the district to invest in keysectors.

MIDC has always kept the process of interactionand meeting with delegation of various countriesand association a continuous affair. This newsletterwill cover such meetings held in the month ofMarch.

We had a meeting Counsul General of Australiawhere we discussed ways to invite the Australiancompany to come and invest in Maharashtra. It wasvery insightful session to understand theexpectation of the Australian investors. Also , MIDC

participated in the Defence Expo organized by theMinistry of Defence. This has opened new avenuefor defence investment in the India and will give afillip to FDI investment. This newsletter will coverthis events in detail.

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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Aerospace and Defence Sector

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India features amongst the top 10 countries in theworld based on its defence spend. In 2014, Indiaspent USD 45.2 billion which was about 2.21% ofits GDP. Over the last decade, India’s annualdefence expenditure has grown by over 231%Our Defence spending is expected to more thandouble to reach USD 120 billion over the nextdecade. In the recently held Defence Expo , newdefence procurement policy was announced. Thegovernment has de-listed 66 percent of itemsfrom defence export clearance to boost the “Makein India” campaign. Under this new policy , stepshave been taken to ensure that procurementtakes place in a transparent but at a faster speed.

With presence of many industries in Maharashtra,the contribution of the state to the Defence sectoris a notable one. Maharashtra occupies asignificant share of 30.49 per cent the industrialoutput of India’s machinery and equipmentmanufacturing sector in 2012-13.Maharashtra’sshare is among the highest with industrial outputof 16.36 per cent of Basic Metal and FabricatedMetal product in 2012-13. Maharashtra has anexisting defence ecosystem with big companiessuch HAL, Bharat Forge, Bharat Dynamics, L&T,Boeing, Walchandnagr Industries Limited andmore. These companies are involved inmanufacturing of defence equipment, vehicles,defence and aerospace component.

14%

5%

5%

4%

4%58%

Share in Global Arms Imports from 2009 to 2013

India China Pakistan Saudi Arabia USA Other

Aerospace and Defence SectorAerospace and Defence Hub in Maharashtra

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Major Aerospace and Defence Hubs

• Arms and Component Manufacturing : Pune has numerousdefense institute such as DRDO Research Labs , Ordinancefactories and industries like Mahindra , Tata motors , Bharat Forgeamongst others.

• Naval Defense : Being closer to ports , Mumbai and Pune haveestablished ship building manufacturers such as Mazgaon dock Ltd.,L&T , NorthStar Shipbuilding amongst others

• Aerospace : Nashik is home to public sector company like HALwhich manufactures Russian Combat Aircrafts .Nagpur and Amravatiregion is also emerging as Aerospace and Defense regions withindustries such as Boeing MRO , TAL , Bharat Dynamics and morePune

NashikAurangabad

Thane

Nagpur

Public Sector Defence Undertakings in Maharashtra

Hindustan Aeronautics Limited : HAL is an Indian State owned aerospace and defence company which has the MiG complex in Nashik. This complex is used for manufacturing and overhaul of MiG fighter planes Website : www.hal-india.comMazgaon Dock : Mazgaon dock is a Government of India Undertaking set up in Mumbai producing sophisticated warship for the Indian Navy and Coast GuardWebsite : www.mazgaondock.gov.inOrdnance Factory Board The board has family of Ordnance factories across Maharashtra and other parts of the country producing defence products.Website : www.ofbindia.gov.in

Aerospace and Defence Hub

Aerospace and Defence SectorKey Players in Maharashtra

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Government of Maharashtra Initiatives• The Government of Maharashtra came out with Industrial Policy in

2013 with the main objective of giving boost to the industrial growthand employment in the state . Following which , many diverseindustries have set up their base in the state. This has led to stateretaining its leadership position in manufacturing output.

• Key Features of the Policy :

• Under the new Industrial Policy 2013-18, Mega and Ultra Megaproject can qualify for fiscal incentives up to 100% of the fixed capitalinvestment.

• Moreover, 10% additional incentive on top of the above mentionedincentives is provided by the state if the project creates double theemployment required for the eligibility

• VAT refund under Industrial Promotion Subsidy for eligible MSMEs• 100 per cent stamp duty exemption to eligible MSMEs units for

acquiring land and for term loan purpose for eligible period• 100 per cent electricity duty exemption to eligible MSMEs units for

eligible period

• Dedicated Institutes

• DRDO’s Research & Development Lab in Pune has providedindigenous development of Combat Engineering Equipment

• Defense Institute of Advanced Technology (DIAT) , Pune is areputed defense institute with center of excellence for education ,training and research in contemporary and futuristic technology

Aurangabad Snapshot

District Focus: Aurangabad

Demographic Snapshot

Population (thousands) 3,701

Literacy Rates (%) 67.65

District Income (Crore) 30,668

Geographic Snapshot

Area ( thousand Sq Km) 10.1

Talukas 9

Major Cities 16

Industrial Snapshot

No. of Factories 1103

Total Factory workers 58,190

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Aurangabad district is the divisional head of the Marathwada region of the state. The district is surrounded by theEast: Jalna district, West: Nasik & Ahmednagar, North: Jalgaon District and South Beed district..Aurangabad district has 9Tehsils viz. Aurangabad, Sillod, Vaijapur,Paithan, Soigaon ,Fulambri, Gangapur, Kannad, Khultabad. At the Districtlevel, Collector is the Administrative Chief and at Tehsil level, Tehsildarsare looking after the administration as perCollector’s instructions. For Rural development, Chief Executive officer of Zilla Parishad and at block level, BlockDevelopment Officers are in charge of the administration. Municipal Corporation for Aurangabad & Municipals Councilsfor other Tehsils are responsible for urban development of all the Tehsils. There are 9 Panchayat Samities and 6 NagarParishads.

Aurangabad Administrative Setup

District Focus: Aurangabad

• Aurangabad is well developed city with world class urbaninfrastructure

• It is well known as the Tourism capital of Maharashtra

• Aurangabad and its surrounding region has huge industrial presence

• It has well developed Auto and Auto component and Pharmaceuticalecosystem

• It is also emerging as a prominent location for IT and ITes companies

Aurangabad District

Road

Total length National And State Highway in the district isabout 1357 kms. Nagpur –Aurangabad –Mumbai expresshighway cuts down significant travel time betweenMumbai . It also connected to important industrial arealike Waluj , Shendre

Physical and Social Infrastructure

Railways

Aurangabad is one the division under the South CentralRailway Zone of Indian Railways. The total railwayslength in the district is about 639 kms . It is connecting tomajor India cities like Mumbai Delhi , Hyderabad,Nanded, Nagpur, Nashik, Pune

Airport

Aurangabad is well connected to major cities like Delhi ,Mumbai and Hyderabad. Passenger movement at thisairport during 2014 was about 4,58,107 while cargo tonnagewas about 1178 tonnes

Education

Pune district has 14 ITI and ITC to cater to the skillrequirement of the heavy industries. It has 32 technicalInstitutes and 125 higher educational institutes to cater tothe growing demand of industries for semi-skilled andhighly skilled resources

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District Focus: PuneInvestment Opportunities

Key Industry Players

PharmaceuticalAuto & Auto Component IT / ITes

• Aurangabad is major auto hub and is home to automajor like Skoda , Bajaj Auto , Goodyear tyres ,Vorrac Engineering ,Balkrishna Tyres , Duro Valvesamongst others

• Waluj MIDC houses big auto and auto component isthe centre of the auto and auto component clusteraround this area

• Pharmaceutical SEZ is located in the 5-starMIDC Shendre and is the most modernMIDC area at Aurangabad

• Johnson & Johnson , Baxter , AMRI ,Monsanto , Lupic , Glenmarks , IPCA,AjantaPharma,Wockhardt Ltd, Innotech Pharmaare some of the pharmaceutical companieswhich are established and growing inAurangabad

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• IT sector promotion was initiated with development of IT park in Chikalthana

• Currently there are around 22 IT units operational employing 2500 professionals.

• Recently , BPOs have also been established which are providing services to local and international customers

Maharashtra Updates: Investment Plans/ Initiatives / Events

Maharashtra is a leading recipient of FDI investment among other states.However, it has seen very few Australians companies investing inMaharashtra. With the “Make in Maharashtra” , Maharashtra wants towelcome Australian companies to visit Maharashtra and invest here.

As part out the government outreach effort, MIDC CEO met the ConsulGeneral of Australia Mr … and Deputy Consul General Ms

MIDC CEO Mr Bhushan Gagrani and Consul General Mr. MarkPierce.both shared the concern of no industrial investment by Australiancompany in Maharashtra. Both agreed that there is immediate steps arerequired to welcome Australian company and guide them on how toInvest in India.

Mr. Pierce noted that Australian investor would need guidance from theGovernment and Government official to ensure that investments are putin the right direction He was also the conveyed the positive impact the“Make in India” and “Make in Maharashtra” campaign has created on theAustralian investors. He was highlighted that reforms under the ease ofdoing business is a progressive step taken by the Government ofMaharashtra

Mr. Gagrani said that the concern of the Consul General are valid and hewill take steps to ensure Australian investment in Maharashtra. Hehighlighted that Maharashtra has excellent business environment and hasbeen leading investment destination of the country. He ensure fullgovernment support to Australians investor who are willing to invest in thestate.

March 18, 2016

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Mr Bhushan Gagrani, CEO MIDC presenting a memento to Consul General Australia Mr Mark Peierce

Defence Expo 2016 March 28 - 31 2016

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MIDC stall at the Defence Expo ; Mr Apruva Chandra , Principal Secretary (Industries) visiting the MIDC stall at

Defexpo India 2016, the ninth in the series of biennial Land, Naval andInternal Homeland Security Systems Exhibition, was held at NaqueriQuitol in Quepem Taluka of South Goa, India from 28th to 31st March2016. Defexpo India clearly steered the path of steady growth and hasreceived overwhelming and unprecedented international response witheach edition.

More than 47 countries participated in the Defexpo 2016 and over 1000Indian as well as International defence companies attended the expo, thisincluded United States (93 companies), Russia (71), UK (46), Germany(39), France (38), Israel (38) and other arms producers like South Koreaand Italy. Some of the companies at the Expo include BAE Systems Inc.,Boeing, Lockheed Martin, Bharat Forge, Air Bus Group, Ashok LeylandLtd., Punj Llyod, Bharat Electronics Limited, HINDUSTANAERONAUTICS LIMITED etc. The expo also saw participation of fewIndian State Governments like Telangana, Karnataka, Andhra Pradesh,Chhattisgarh.

The Defence Procurement Procedures (DPP) Policy 2016 was unveiledduring this Expo. The policy is expected to address the concerns ofdefence manufacturers and suppliers with enhanced transparency andalso support.

For the first time live demonstrations of the equipment’s were showcasedin the Expo. Moreover, various defence-related companies forged jointventures and struck mega-dollar deals at the defence exposition.

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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From the Government of Maharashtra-MIDC

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