Auto Industry Textile industry Focus Sectors for investments

Focus Sectors for investments
Auto Industry
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Tamil Nadu is to-date the only State to attract seven automobile giants-Ford, Hyundai, Mitsubishi,
Daimler, Nissan, Renault and BMW. As on date, Chennai, the capital of Tamil Nadu has an installed
capacity to produce over 3,80,000 cars and about 3,50,000 commercial vehicles each year.
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Tamil Nadu will have significant capacity addition by 2017-18 with players like Yamaha, Toyota ,
Mahindra & Mahindra establishing their plants in the Region.
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Tamil Nadu is the largest contributor to the automobile sector in India in terms of Industrial Output
and has about 20% of India’s total installed capacity of Vehicle production.The state aims to reach 5
million Units production by 2020.
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Tamil Nadu accounts for 21% of India’s automobile exports. It’s the Export Hub of Passenger Vehicles
accounting for 70% of India’s overall exports.
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It has over 80 automobile component manufacturers, accounting for a turnover of over USD 1.3 billion
as in 2013-14.
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It is industrially highly concentrated in manufacturing of body and structural parts.
Opportunities
The state has three existing automobile and auto component clusters, three upcoming auto industrial parks and
four upcoming auto clusters.
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Passenger Vehicles, Passenger Cars, Utility Vehicles, Multi-purpose vehicles
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Two Wheelers: Mopeds, Scooters, Motorcycles
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Three Wheelers: Passenger and Goods carriers
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Commercial vehicles: Light, Medium and Heavy commercial vehicles
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Auto ancillaries/auto parts manufacturing
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Auto parks/industrial infrastructure development on PPP mode
Textile industry
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Tamil Nadu is one of the leading states in India in Textile Industries. It houses the country’s largest
spinning industry accounting for almost 40% of the total installed capacity in India. It has a complete
ecosystem of textile industry.
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Tamil Nadu is home to the Knitting industry and has the biggest knitting cluster in India – Tirupur.
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The state offers a complete ecosystem of the textile industry. There are 2614 Hand Processing Units
and 985 Power Processing units in Tamil Nadu.
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Tamil Nadu ranks 1st in the Apparel Industry and 2nd in the Textile Industry in terms of percentage
contribution by state in the total industrial output of respective industries in India.
Opportunities
The state has around 6 upcoming textile parks and two upcoming apparel parks.
Home textiles
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Handloom & Handloom Products, Cotton Yarn and Fibre Yarn, Silk and silk Products
Technical Textiles
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Clothtech, Buildtech, Meditech,Protech, Agrotech, Packtech, Sportech, Non-woven, Raffia and Coir
Products
Apparel Manufacturing
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Cotton Readymade garments, Knitted garments, Processing & finishing
Chemicals and Petrochemicals
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Tamil Nadu has a diversified manufacturing base with about 2,500 chemical and petrochemicals
factories, providing employment to over 120,000 people
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Some of the leading chemical and petro chemical manufacturers such as CPCL, Saint Gobain, SPIC.
Opportunities
Tamil Nadu’s PCPIR is spread over an area of 257 sq. km. of brown field area in the coastal districts of
Cuddalore and Nagapattinam. Investments have been planned in
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Deep sea port with FSRU for import of LNG.
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Gas based power plant
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Petrochemicals complex through partnership with private co- promoters
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Petrochemicals downstream plants and fertilizer complex.
Apart from this opportunities lie in
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High performance chemicals, Pigments and coating products, Petrochemicals, Engineering
Polymers, Feedstock linkages, Dyes and dyestuffs, Specialty chemicals, Agro chemicals, Paints and
varnishes, New varieties of fibers & yarn, Nanotechnology based projects, Fine chemicals
Heavy Engineering Sector
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Tamil Nadu is a prominent player in heavy engineering sector in the country. Tamil Nadu is 5 th in terms
of heavy electrical machinery sector contribution to total India’s output of this segment with 6% share.
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There are number of engineering industrial estates in Tamil Nadu. Heavy Engineering Industrial Park
has been proposed in Tiruvallur district. Two Manufacturing and Business Investment Regions
(Coimbatore-Salem Industrial Corridor and Madurai-Thoothukudi Industrial Corridor) are proposed to
have heavy engineering as part of their industrial base. Chennai – Bengaluru Industrial Corridor is also
planned to pass through the state and has segments of heavy engineering in its list of priority sectors
for development.
Opportunities
Heavy engineering industrial park in Tiruvallur district
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Heavy electrical equipments, Ship building, Energy equipment manufacturing, Anchor units
Coimbatore – Salem industrial corridor - Manufacturing and Business investment region I&II
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Heavy engineering industries, Precision tools, Logistics
Madurai –Thoothukudi industrial corridor – Manufacturing and Business investment regions
(MBIR) I
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Manufacturing Zines, Warehouses and Logistics, Industrial parks
Electronic Hardware sector
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Tamil Nadu is the 3rd largest manufacturer of Electronic Hardware in India.
Opportunities
The state has 8 electronic hardware SEZ’s and is a home to some of the major international players such as
Samsung, Dell, Nokia Seimens etc. Opportunities for this sector lie in
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Photovoltaic panels, Computer peripherals, Mobile handsets, Communication hardware and networks,
Semiconductors, Medical electronics
Pharmaceuticals and Biotechnology Sector
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Tamil Nadu is the fifth-largest pharmaceutical producing state in the country and accounts for 10% of
the national production of pharmaceutical products in the country.
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The thrust areas of Tamil Nadu’s biotechnology industry include healthcare, agriculture biotechnology,
industrial enzymes bioinformatics, contract-research, marine and environmental biotechnology.
Opportunities
Proposed bio-pharmaceutical SEZ
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The SEZ is spread over an area of 365 hectares Denkannikotta and Hosur Taluk, Krishnagiri District,
Tamil Nadu. The proposed SEZ will have US-Food and Drugs Administration (US-FDA) compliant BioPharmaceuticals facility, Clinical Research Organization (CRO), Joint Commission on Accreditation of
Healthcare Organizations (JCAHO) certified Hospital, Poison Control Centre, Centre for Regenerative
Medicine, Associated research infrastructure be it a pathology lab or state of the art Medical Imagining
and Tele-Medicine Research, logistics Hub etc.
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Tamil Nadu has an existing Bio-tech park at Chennai and upcoming Bio-tech Park, Marine Bio-tech
Park and upcoming Bio-pharmaceutical SEZ.
IT&ITES
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IT & ITeS industry is the major contributor to the Service sector in the state. The number of registered
software units in Tamil Nadu has increased from 1114 in 2004-05 to 1780 in 2012-13 providing
employment to more than 3.75 lakh professionals.
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Tamil Nadu accounts for more than 10% of the total IT exports carried out from India. This is majorly
due to the presence of IT Giants like TCS, HCL, Wipro, Tech Mahindra, IBM etc. in the state. The state
is the Fourth Largest Software exporter in India
Opportunities
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There are 28 operational SEZs for IT-ITeS in the state. Around 234 IT Parks are in the Pipeline with a
built-up space of 131 million sq. feet in Tamil Nadu.
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IT parks are exclusively Export oriented units which focus mainly on Computer software and services
related to them. Software Technology Parks of India –STPI has established its parks in Chennai
(headquarters), Trichy, Madurai, Tirunelveli, & Coimbatore.
Renewable energy
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Tamil Nadu has the largest renewable energy capacity among all Indian states. More than 50% of the
total power capacity in Tamil Nadu is through renewable energy sources.
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Seven districts have been identified which have a wind power density of 700 watts per square meter
which is very conducive for wind power generation.
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Tamil Nadu enjoys solar incidence of 5.5 - 6 kWh/sq.m/day and has been untapped with a cumulative
capacity of 97 MW.
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Tamil Nadu has a potential of 500 MW of biomass power. Out of this, the capacity to the extent of 211
MW has already been exploited. This is about 40% exploitation of existing potential. However, there is
still opportunity for investment in about 290 MW.
Opportunities
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The state has an outlay of USD 9170 million for solar energy sector alone.
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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.
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As per the state industrial policy which includes.
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Investments made in power plants to be included for the purpose of structures packages.
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Refund of 50% of the VAT component on capital goods (if these are manufactures in Tamil
Nadu) exclusively for captive power generation.
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Electricity tax exemption for sale to utility & captive sales for 5 years.
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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.
Opportunities for this sector lie in 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.
Agro & Food Processing sector
Tamil Nadu is one of the top three producers of a variety of fruits in India and the second largest producer of
poultry and dairy products in India. The state is the largest producer of banana in the country and third largest
producer of tea and coffee in the country.
Opportunities
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The state has 5 existing agro export zones one upcoming Food park in Thoothukudi and one upcoming
food processing industrial park in Dindigul.
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The Ministry of Food Processing Industries has sanctioned three cold chain projects in the state
under its “Scheme for Cold Chain, Value Addition and Preservation Infrastructure”
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50% of the production of EPZ/FTZ and 100% EOU units is saleable in domestic tariff area.
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No industrial license is required for almost all food processing industries with the exception of items
like beer, potable alcohol & wines , cane , sugar, hydrogenated animal fats & oils etc.
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Capital goods are also freely importable, including second hand ones in the food processing sector.
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All profits from export sales are completely free from corporate taxes. Profits from such exports are
also exempt from Minimum Alternate Tax (MAT).
Aerospace sector
Opportunities
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TIDCO is establishing an integrated aerospace and logistics park in Tamil Nadu to support the
development of aerospace industry. . It will be a specifically delineated region, which will cover design,
engineering, manufacturing, servicing and maintenance of aircraft in the state.
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The government has planned to set up a maintenance, repair and overhaul (MRO) facility on a 50 acre
area near the Chennai airport.
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It has also proposed to develop a components manufacturing park for the aerospace industry on 300
acre in Sriperumbudur.
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An aerospace park has been planned at Perambalur SEZ , with focus on manufacturing and assembling
of aircrafts.
Skill Development
Tamil Nadu has the highest number of technical universities in the country. Nearly 400,000
engineers and graduates are added to the state’s talent pool every year from over 1900 colleges. In
addition to this the government is also setting up an innovation fund that rewards
Opportunities
The State Government is setting up world class institutions as Centres of Excellence (CoE) in the
following domains:
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Automotive, Solar and clean technology, Agricultural practices, Water conservation,
Construction, Aerospace, Basic sciences, Nano technology
Infrastructure
Tamil Nadu‘s consistent economic performance is largely a contribution of the infrastructure
development that has happened in the state.
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The only state with 3 major ports and handles around 110MT which is 11% of the total India
traffic.
The largest telecom market with 8.4% of the total active subscriber base
The state also has a highly developed road infrastructure with a density of 156km per 100 Sq.km.
3 international airports and 4 domestic airports connecting state to multiple
Opportunities in focus sectors
AUTOMOBILES AND AUTOCOMPONENTS
-Auto & auto components
Auto city
-Automobile SEZs
TEXTILES
-Yarns and fibres
-Apparels
-Technical textiles
-Infrastructure development
BIOTECH AND PHARMACEUTICALS
-R&D / Manufacturing
-Biotech incubation
-Pharma SEZs, biotech incubation centres
-Bioservices
CHEMICALS AND PETROCHEMICALS
-Basic chemicals
-High performance chemicals
-Refinery downstream projects
-Specialty and fine chemicals
HEAVY ENGINEERING
-Precision Engineering
-Heavy electrical industry
-Industrial machinery and machine tools
SKILL DEVELOPMENT
-ITIs on PPP mode
-Vocational training institutes
-Centres of excellence
-Technical institutes
IT&ITES
-Computer hardware and software development
-BPO
ELECTRONICS HARDWARE
-Electrical equipment
-Consumer electronics
AEROSPACE
-Maintenance, repair and overhaul
-Aircraft parts manufacturing
-Aircraft assembling
RENEWABLE ENERGY
-Solar/wind power equipment manufacturing
-Renewable energy power plant
POWER
-Power generation
-Transmission
-Distribution