Investing in Gujarat

India The Favoured Investment Destination

Strong Economy
Agriculture 16%

GDP Growth
10.0% 8.0% 6.0% 4.0% 4 2.0% 0.0% 9.2% 9.0% 7.4% 7.4% 8.6%

Manufacturing Sector 29%

Service Sector 55%

2007

2008

2009

2010

2011

Trillion dollar economy - worlds 12th largest FDI Top Sectors

Other 44% Services Sector 21% Hardware and Software 8% Telecommunic ations 8% Real estate 14%

Steady GDP Growth

Top p FDI Destinations of the World

Rank 1 2 Countries China United States

Automobile 5%

3
4

India
Brazil

India secured the top rank in availability of skilled manpower, access to local and international markets and strong market fundamentals

5 Russian Federation The third most favored destination for FDI USD 176 billion FDI inflow between April January 2011 United Kingdom

1. 2.

Strategic Location Strong Economy Excellent Infrastructure Impetus to Industries Doing Business Government Initiatives ii Opportunities

Contents

3. 4. 4 5. 6. 7.

1. Strategic Location
Strategic location providing access to major international and domestic markets Located on the west coast of India and connected to major ports of UK, Australia,
Middle East and East Asian economies 1,600 1 600 km coast line offers offers numerous opportunities for port based industries

Gateway to land locked states in India

2. Strong Economy
Leading investment destination with highly competitive investment climate
Gujarat's share in India 5th largest economy
Population Geographical area No. of factories Net Manufacturing value Value of output Fixed capital investment Exports 5% 6% 10% 12% 16% 17% 22% 35% % 51% 5

Ahmedabad is rated as the third fastest growing city in the world (2010) by Forbes magazine Top contributor to Indian economy, around 22 % of Indian exports contributed by Gujarat

Contribution of Gujarat to India

62% 65% 80% 80%

Diamond proces ssing

Pharmaceut ticals

Petrochem micals

Sustained investor confidence, confidence the state with the highest number of proposals in India Delivering promises, the state with highest number of MoU and IEM realization

Plastic Indu ustry

Salt proces ssing

Chem micals

One of the most industrialized state, with 38 % of GDP contributed by secondary sector

3. Excellent Infrastructure
Gujarats excellent trade and transportation networks create better market access and trade flows for companies

The Sardar Sarovar Narmada river linkage project, to create continuous water supply throughout the state

High teledensity and excellent internet connectivity in the state

A power sufficient state with one of the highest per capita power consumption

The only Indian state with an integrated state-wide Gas Grid

State with the highest number of ports and airports

Excellent road and rail network

4. Impetus to Industries
Taking a lead in creating the right kind of infrastructure with a focus on the future
12 Special Investment Regions of more than 100 sq km each being planned 1 Petrochemical and Petroleum Investment Region, 60 Special Economic Zones and existing 200 industrial areas, creating opportunities across sectors 38% of the planned Delhi Mumbai Industrial Corridor route is through Gujarat Development of new industrial areas for agro parks, tourism , recreation and information technology

5. Doing Business
A Globally competitive business destination with outstanding human capital

Availability of large pool of high quality human resources for all sectors

The land of entrepreneurs who are spread across the globe

Home to some world renowned institutes in management, engineering and design

State with one of the least utility costs, Taxes at par with other business destinations and globally cost competitive labour force

Availability of high quality health care facilities

Government initiated schemes for women empowerment, reducing infantile mortality and primary education support

6. Government Initiatives
Conducive Business Environment
Awarded 2nd best state in Asia pacific category in Improving transparency, accountability and responsiveness in public service by UN in 2010 Stable political climate Urban development initiatives for high quality living Simplification p of p processes and single g window approach pp for investors International campaigns for investment promotion across sectors Wide array of choices for tourists right from heritage monuments, archeological sites , wild life and beaches

Favorable policy and regulatory environment Industrial Policy 2009 for high quality socio economic development Sectoral policies for promotion of investment and growth Incentives under SEZ, SIR and Industrial Area development Subsidies for environment protection A leader in encouraging private participation under public-private partnership

7. Opportunities
A land of immense opportunities, an opportunity for everyone

Industry specific advantages in a slew of sectors Presence of more than 370,000 MSMEs in the state Strong growth of agriculture and horticulture - creating opportunities in ag agro o o t ities i o processing. ocessi g Historically strong gems and jewelry sector Strong mineral base Large investments requirement in infrastructure Opportunities in ports and port based industries Opportunities in the tourism industry spread across the value chain Opportunities in sunshine sectors like solar power and biotechnology

 Chemicals and Petro Chemicals Engineering and Auto Financial Services Food and Agro Gems and Jewellery

P Priority y Sectors s

Healthcare H lth Knowledge Sector Mines and Minerals

Oil and Gas Pharmaceutical and Biotechnology Ports, Shipbuilding and related Industries Textiles Tourism Urban Development Water Conservation and Efficient Use

Chemicals and Petrochemicals

Basic Facts
Hub of chemical industry in India, contributes to more than 62 % of national petrochemicals and 51% of national chemical sector output Around 6,600 chemical and petrochemicals products are produced in the state More than 35% of large and medium units in states Around 16% of employment in the state Leads all states in India in terms of investments committed in chemical and petrochemical sector Large quantity of production of basic chemicals caustic soda, caustic potash and chloromethane Largest supplier of bio fertilizers, seeds, urea and other fertilizers

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Investment Opportunities
High performance chemicals Pigments and coating products Geo Textiles Engineering Polymers Feedstock linkages Bio refineries PP filament yarn Acrylic fibres

Engineering and Auto

Basic Facts
Highly industrialized state, with more than 38 % of GDP contributed by secondary sector 38% of planned Delhi Mumbai Industrial Corridor route is through Gujarat. 15% contribution to total industrial production in Gujarat and more than 9% to national engineering output More than 30 industrial clusters in the engineering sector 9,607 Industrial Entrepreneurs Memoranda (IEM) filed till June 2010 with an estimated investment of Rs 7 7,702 702 billion and employment potential of 1 1.9 9 million Having manufacturing plants of Tata Motors, Hyundai Heavy Industry and Bosch Rexroth India, state is marching towards becoming auto hub of India

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Investment Opportunities
Turbines, transformers, generators Power equipment manufacturing Auto components and ancillaries Infrastructure equipment Assembling and manufacture of automobiles Modern cement and textile machinery

Financial Services
Basic Facts
State accounts for 30% of Indias stock market capitalization State is home to 6,091 branches of Scheduled Commercial Banks including private sector As A per the th data d t released l d by b RBI, RBI Banks B k in i Gujarat G j t have h b been utilizing tili i almost l t 100% % of f the th sanctioned ti d credit dit 142 branches of Life Insurance Corporation of India (the market leader) MSMEs: Over the last three years (from 2007 to 2010), about Rs. 8,000 crore of investment is being made in setting up MSMEs in Gujarat

Select Players y Investment Opportunities

Core banking solutions Application A li ti development d l t and d maintenance i t Off-shoring centralizable operations Back office processing of banking, finance services and insurance companies like : In-bound service an out-bound customer

Equity research Loan processing, etc.

Food and Agro

Basic Facts
Out of the total geographical area of 196 lakh hectares in Gujarat, total cropped area is around 128 lakh hectares (65%) Produced 218 million tonnes of food grains in 2009 2009-10 10 Wheat, Bajra, Rice, Maize, Groundnut, Mustard, Sesame, Pigeon pea, Green Gram, Gram, Cotton, Sugarcane are the major crops Gujarat has highest productivity in custard, castor, guava, potato, onion, cumin, fennel and cotton, second highest productivity in groundnut and bajra, third highest productivity in gram, guar, b banana and d isabgul b l in the h country.

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Investment Opportunities
Agri / horticulture infrastructure projects: cold t f h fruits f it and d vegetables t bl k house, h storage, fresh pack mechanized grain handling and storage at port, Food Parks, terminal markets, irradiation centers. Export-oriented processing Value added p processing g based on local resources Natural resources based opportunities: natural food colors, medicinal herbs extraction, tree oil based biopesticides, food

Gems and Jewellery

Basic Facts
Contributes 80% of total diamonds processed in India Gujarats comparatively cheaper and skilled workforce can be effectively utilized to setup large low cost production bases for domestic and export markets Over 70% of f total l Gems and d Jewellery ll exports of f India d 90% of total diamonds in Gujarat are processed by about 10,000 diamond units located in and around Surat 85% of unique handmade silver jewellery production of India

Investment Opportunities
Jewellery Fabrication White Gold Platinum Jewellery Paved Diamond Jewellery Studded Jewellery Infrastructure Development Jewellery Manufacturing Units Assaying and Hallmarking Centres Gold Refinery Diamond Park Jewellery Retail Luxury Products such as Watches, Brooches, Clocks

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Healthcare
Basic Facts
Share of primary care in total healthcare market of Gujarat is around 75-80% Gujarat offers holistic medicinal services and cost effective treatment through various district hospitals, sub-district hospitals and Private S i lt H it l Specialty Hospitals Most sought after SuperSpecialties in Gujarat include Cardiology, Neuro Surgery, Orthopedics, Infertility treatment, joint replacement and eye surgeries Government striving towards making the state a global healthcare destination

Investment Opportunities
Integrated Health-City Hi-tech MRI/CT scan Facilities Chain of Primary Public/Community Centres Hospital Management on Rehabilitate, Operate and Transfer (ROT) basis Clinical Research & Trials

y Select Players

Knowledge Sector
Basic Facts
1,405 higher education institutions/colleges affiliated to various universities in the State Over 7 million students enrolled in different higher education courses 274 colleges ll dit d b t th d of f 2009 accredited by NAAC at the end Gunotsav Quality improvement program for schools Kanya Kelavani Rath Yatra & Shala Praveshotsav Children (particularly girl child) enrollment program

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Opportunities for PPP

Public Private Partnerships in education PPPs for Skill development institutions PPPs for degree and diploma engineering collages PPPs in school education Creation of a Knowledge city Private universities under Private Universities Act 2009

Mines and Minerals

Basic Facts
The mineral and quarrying industry is more than USD 2 billion and employs more than 14,000 workers Has total mineral reserves of more than 19,000 million tonnes for exploitation Has strength g in non-metallic minerals, , which offer the best prospects p p p Houses about 6,500 mineral-based industries Possesses one of the highest reserves of lignite, limestone, perlite and clay deposits in India The only producer of agate and chalk in the country

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Investment Opportunities
Lignite Power plant, lignite chemicals (oil drilling) Underground coal gasification Bauxite GMDC coming up with new projects with a required investment of Rs. 4,000 crore Bauxite based refractory Limestone/Cement industry 22 million tonne capacity to be added Others Silica sand based glass industry Zinc and copper extraction projects Marble quarrying & processing Lamellar china clay production

Oil and Gas

Basic Facts
Contributes 53% and 31% to Indian Crude Oil and Natural Gas production respectively Only state in India with a 2,200 km integrated gas grid that is operated on an open access common carrier principle access, It has the highest number of Oil and Gas fields in India (84 out of 219). It has 167 wells with a metreage of 0.3 million Petroleum products constitute 33% of Gujarats industrial output MoUs worth Rs. 110,347 crore signed in the O&G sector, in the previous Vibrant Gujarat Summits

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Investment Opportunities
Oil & Gas refining Gas distribution Gujarat is the first state to have a gas grid. City gas distribution projects are awaiting investments Investments in PCPIR are incentivized

Pharmaceutical and Biotechnology

Basic Facts
Contributes 35% to the overall Indian pharma output Home to 40% Contract Research Organizations (CRO) in the country 22% of Indias pharma exports Employs around 63,000 63 000 people in the state Known as the hub of Indian pharmaceutical industry with over 5,400 manufacturing licenses. The landscape of Gujarat Biotech industry, consist of more than 50 Biotechnology companies and 66 support organizations The present annual turnover in biotechnology in Gujarat has been around USD 150 - 175 million (Rs (Rs. 700 crore)

Investment Opportunities
Manufacturing API & Formulations Medical Equipment Pharmaceutical Machinery Healthcare Products , Bio-pharma p and Vaccines, therapeutics BT seeds and crops Services Contract research g Contract manufacturing Diagnostics Pharmaceutical Retail Stem cell banking Infrastructure R&D Clinical research Genetic engineering Drug research and development

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Ports, shipbuilding and related industries

Basic Facts
Ports in Gujarat handled 205 MMT of cargo traffic in 2009-10, which will increase to over 500 MMT in 2-3 years. With the doubling of cargo handling capacity, the state will be handling more than 40% of the countrys cargo traffic State with 41 4 minor and intermediate ports p State to interlink 45 ports using integrated port management system One of the largest ship recycling yards in the world - at Alang Kandla port is Indias biggest cargo handler by volume First Indian State to have an LNG terminal

Investment Opportunities
Greenfield Ports Single Buoy Moorings Capacity augmentation at existing Ports Marine Tourism Projects

S l Pl Select Players

Textiles
Basic Facts
Contributes 31% of Indian textile production Largest producer (35%) and exporter (60%) of cotton in the country D i production d i 3rd dl h W ld and dl di (6 %) Denim largest i in the World largest i in I India (65-70%) Over 24% to 28% of fixed investment, production value and employment of Small Scale Industries (SSI) is from textiles sector Technical Textiles is a key emerging area with over 860 units in Gujarat (as per Government of Gujarats survey report)

Investment Opportunities
Conventional Textiles Ginning and Pressing Cotton & Synthetic based Spinning, Weaving & Processing Units, Cotton Knitwear Terry Towel / Home Furnishing High valued Garment Manufacturing Technical Textiles Protective Textiles Agro Textiles Geo Textiles Automotive Textiles Home Textiles Infrastructure Development Cotton Integrated Textile and Apparel Park

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Tourism
Basic Facts
Total tourist number for Gujarat was around 16 million tourists in 2008, compared to less than 8 million in 2004, thus growing at a CAGR of about 20% International tourists arrivals to Gujarat grew at a much higher CAGR of over 45% during the same period Almost 2% of tourists in Gujarat are international tourists (higher than the 1% figure for India) moreover, the point to be observed here is that international tourist arrivals to Gujarat is growing at a CAGR of over 45%

Investment Opportunities
Media & Entertainment Projects Film cities Film-cities Film-studios Amusement Parks Digital Gaming Zones Multiplexes Sound & Light Shows Sports Complex Water Parks Beach Tourism Projects R t t Restaurants Drive-in resorts Floating hotels Water sports Maritime museums Sea Park / Aquarium Cruise services

Urban Development
Basic Facts
Gujarat accounts for 6% of the total geographical area of the country and around 5% of the countrys population Gujarat - The Urbanized State of India - 43% share of urban population as compared to 28% share of urban population in India St t t l several lt i cities iti on th fN k and dN State to d develop twin the li lines of New Y York New J Jersey State got 4 awards from Union Urban Development Ministry for implementation of JNNURM projects

Investment Opportunities
Solid Waste Management State-wide Municipal Solid Waste Management Project 12 super-clusters planned through PPP Mode to cover areas of 8 Municipal Corporations & 159 Municipalities Energy Efficiency Baseline data collection and pre-energy audit completed in 159 Municipalities and 6 Municipal Corporations Total annual energy saving potential is approx. 2.3 lakh MWH j International Finance Tec City y( (GIFT) ) Gujarat GIFT targets to tap 6-8% share of the financial services potential in India Creation of about 500,000 direct and equal number of indirect jobs

Water Conservation and Efficient Use

Basic Facts
Most parts of the State comes under scarcity prone area total fresh water availability is only 1,137 cu.m. per capita per annum, over 70% of which is limited to South Gujarat The distribution pattern of rainfall in the state ranges from over 2,000 2 000 mm in the Dangs in South Gujarat to about 200 mm in Kutch Gujarat has long coastline and two huge gulfs the Gulf of Cambay and the Gulf of Kutch - the entire Little Rann of Kutch and Greater Rann of Kutch are inundated with saline sea water for most of the year, deteriorating the ground water quality in adjoining areas Domestic and industrial water demand for the year 2025 are assessed to be 2,000 million cubic meters per year

Investment Opportunities
Municipal Water Treatment Plants Industrial Water Treatment Plants W t water t collection ll ti network t k Waste Municipal Waste Water Treatment Plants Industrial Waste Water Treatment Plants Rainwater Harvesting Micro-irrigation

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