Knowledge Part ner

Maharashtra Chemical Sector

May 2014
Page 2
GSDP contribution
14.4 per cent of IndiaGDP at current
prices for 2011-12
Per Capita Income INR 95,339 (at current prices)
Employment 14.58 per cent of India
Exports 21.4 per cent of India
Industrial output
16.7 per cent of India ( as per the Annual
Survey of Industries 2009-10)
Industry growth rate 9.1 per cent. (2010-11 E)
Maharashtra The enduring leader
Macro Economic Profile for Maharashtra
The State attracts the highest FDI Investment INR 97,799 crore (Aug 91 March 12)
Source: Economic Survey of Maharashtra, 2012-13
Page 3
Road and Railways
99.2 per cent of the villages are well connected
with all weather roads in the state
9.2 percent of total railway network in the
country
2 Major Railway zones
Dry Ports Truck terminals and Railway sidings
for easy freight movement
Air and Water Ports
4 International and 5 Domestic Airports
6 MIDC airstrips
3 Major ports
21.76 per cent of the total cargo traffic of the
major ports in India is handled by the JnPT and
MbPT ports
53 Minor ports
Industries
Industrial Investment Projects approved are
17779 inviting proposed investment of INR
9,50,972 Cr.
Employment to be generated by the proposed
projects is nearly 4 million that is nearly 20 per
cent of national average
FDI proposed investment INR 97799, 23 per cent
of India
Electricity
Total State generation 83017 Million kwh nearly
10 per cent
Total consumption 87396 Million kwh more
than 14 per cent of India
Industrial consumption is at 34416 Million kwh
more than 15 per cent of India
Maharashtra The enduring leader
Macro Economic Profile
The State attracts the highest FDI Investment INR 97,799 crore (Aug 91 March 12)
Page 4
Introduction
Chemical Industry is an important constituent of the Indian economy. Its size is estimated at around USD 35
billion approx., which is equivalent to about 3 per cent of India's GDP. The total investment in Indian
Chemical Sector is approx. USD 60 billion and total employment generated is about 1 million. The Indian
Chemical sector accounts for 13-14 per cent of total exports and 8-9 per cent of total imports of the
country. In terms of volume, it is 12th largest in the world and 3rd largest in Asia
The Chemical and chemical products sector is the one of the leading sectors in the state
Chemical sector has been traditionally strong in Maharashtra with specific strength in Raw materials, Building
Block production and Value Addition & Processing with clusters located in the Mumbai, Thane, Pune belt
The total industrial output of the sector for the year 2010-11 is of INR 85206 crore. The net value added by
the Chemical and Chemical Products in the Maharashtra GDP is INR 18628 Crore for the year 2010-11
The average daily employment in the state for the year 2011 is 1816. The Chemical and chemical products
sector provides employment for more than 10 per cent of the total employment generated by factories in
the State
MIDC has declared 13 chemical zones which are at TTC, Tarapur, Dombivli, Ambernath, Badalapur, Kalyan
Bhiwandi , Taloja , Roha, Patalganga, Mahad, Lote- Parshuram , Kurkumbh, Butibori
The total FDI investment in the Chemicals & Fertilizers sector from August 1991 till March 2012 was INR
2,666 crore
Page 5
Growth Drivers
Page 6
Infrastructure
Notified SEZs
1 Mahindra& MahindraLtd., Owale,Ghodbunder Road
2 Saloni Bussiness Park Pvt. Ltd
3 UttamGalvaSteels Ltd (UGCL),Devnhave, Khalapur, Raigad
4 YashprabhaEnterprises
5 AjantaProjects Ltd.
8 Navi Mumbai SEZ Pvt Ltd
MIDC has provided13 Chemical zones in the state
To Goa
To Madhya Pradesh
To Gujarat
To Madhya Pradesh
Nanded
Solapur
Sangali
Nasik
Dhule
Wardha
Jalna
Sindhudurg
To Andhra Pradesh
T
o
C
h
h
a
t
t
i
s
g
a
r
h
To Karnataka
To Goa
Amravati
Osmanabad
Latur
Beed
Gadchiroli
Sinnar:
1
Gondia
Gangapur

Sinnar
Rajgurunagar
Dighi
Shirdi
Karad
Shirpur
To Andhra Pradesh
Raigarh
Raigad:2
Ozhar
T
h
a
n
e
:
1
Baramati
Phaltan
Akola
Jalgaon
Nagpur: 1
Nagpur
Bhandara
Yavatmal
Chandrapur
Kolhapur
Ratnagiri
Satara
Aurangabad
Ahmednagar
Thane
Mumbai
Pune: 1
Pune
Legend
National Highway
Railway
International Airport
Domestic Airport
Major Ports
KeyLocations
Industry Cluster
MSEZs
Notified Multi Product
SEZsas on March 2012
Chemical Zones
Page 7
Key Opportunities in the State
High
Performance
chemicals
Engineering
plastics
Nanotechnol
ogy-based
Projects
Pigments &
Coating
products
Specialty
chemicals
The Maharashtra state looks to invest in the emerging chemical industries. These include the following
Page 8
Manpower strength in Maharashtra
Sector Institutions Capacity
Engineering(Diploma, Degree and PG) 1004 323533
Management Sciences 508 60100
Industrial TrainingInstitutes 766 1,54,710
The Govt. is promoting"Centers of Excellence", which will cover all aspects of cuttingedge research and development in
emergingareas of life sciences and technology
Maharashtra has a strongskilled labour base supportingthe chemical industry. The state offers a strongeducational
infrastructure with technical institutions providingChemical engineeringcourses across the state.
There is a strongresource pool and backward linkages with the well-developed chemicals and petrochemicals sector serves as
an added advantage.
The state also has one of the Indian Institutes of Technology (IITs) at Powai in Mumbai, part of the country's renowned
network of engineeringand technology institutions. IIT Mumbai has 13 departments and various centers for R&D*
Human Capital
Maharashtra has a literacy rate of 82.9 per cent with a large base of skilled and industrial labor
Page 9
Government Policy and regulatory support
S
t
a
t
e
p
o
l
i
c
y
s
u
p
p
o
r
t
Relevant documents to refer to:
Maharashtra Industrial
Policy 2013
Maharashtra Biotechnology
Policy 2001
Package Scheme of
Incentives 2013
Maharashtra SEZ Policy
2001
Industrial Promotion Subsidy (IPS)
Incentives for Cleaner Production
Incentives for Technology Up gradation
Interest Subsidy
Exemption fromElectricity Duty
Waiver of Stamp Duty
Royalty Refund
Incentive for Water Conservation
Incentive for Water & Energy Audit Subsidy
Government Initiatives
In Chemical Sector, 100 per cent FDI is permissible. Manufacture of most chemical products inter-alia coveringorganic /
inorganic, dyestuffs & pesticides is de-licensed. Entrepreneurs are allowed to set up chemical industries through the Industrial
Entrepreneurs Memorandum (IEM) route
To mitigate the impact of anti dumping, Government has imposed 20 per cent safeguard on soda ash
16 per cent excise duty on almost all chemicals
Downstream SEZs have been planned to use the output of chemicals parks
Incentive for Water & Energy Subsidy
Page 10
Key players
Page 11
Maharashtra Chemical Sector Key
Players
Page 12
Contact the
MIDC Investor Facilitation Cell at
investor@midcindia.org
For further enquiries . .
Disclaimer
MaharashtraIndustrial Development Corporation (MIDC) has engaged Ernst &YoungLLP. (EY) to prepare this document and the same has been prepared byEY in consultation with MIDC. This document is for
information purposes only. While due care has been taken duringthe compilation of this document to ensure that the information is accurate to the best of EY knowledge and belief, the content is not to be construed in
anymanner whatsoever as asubstitute for professional advice.
EY does not assume anyliability or responsibilityto anyperson for the outcome of decisions taken bysuch person as aresult of anyreliance placed on this presentation. EY shall not be liable for anydirect or indirect
damages that mayarise due to anyact or omission on the part of the user due to anyreliance placed or guidance taken fromanyportion of this presentation.
2014
All rights reserved. All copyright inthispresentation andrelated worksis solely andexclusivelyownedbyMIDC and Ernst &Young. Thesame maynot bereproduced, whollyor inpart inanymaterial form(including
photocopyingor storingit in anymediumbyelectronic means and whether or not transientlyor incidentallyto some other useof this presentation), modified or in anymanner communicated to anythird partyexcept
with the written approval of MIDC.