Tamil Nadu State Profile and Investment Guide

8/20/2019 Tamil Nadu State Profile and Investment Guide

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STATE PROFI


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Advantage India

World's largest

democracy with 1.2

billion people

Enabling business

environment with

greater

global participation

Strong Ma

Fundame

Land of abundant

natural resources

and diverse climatic

conditions

Impetus on

Infrastructure

Development

Access to technologyas a

result of the IT

revolution

Competitivel

skilled la

Progressive

simplification and

rationalization of

direct and indirecttax structures


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Services

18%Constructio

n

developme

nt

11%Telecom

7%

Computer

software

and

hardware

6%

Pharmaceu

ticals

6%

Automobil

e

4%Chemicals

4%

Other

44%

India – a favoured investment destination10th largest economy in the world by nominal GDP

3rd largest economy in the world by purchasing power

parity (PPP)

One of the fastest growing economies in the world

(decadal growth rate of about 8%)

Source: World Bank

649.44819.76

958.17

1441.00

0

500

1000

1500

2000

2007-08 2010-11 2013-14 (P) 2020-21 (P)

GDP - constant prices (USD billion)

CAGR of 7% between 2007-08 and 2013-14GDP anticipated to reach USD 1.4 trillion by 2020 17% 16% 15% 15%

29% 28% 28% 28%

54% 56% 57% 57%

0%

20%

40%

60%

80%

100%

2007-08 2008-09 2009-10 2010-1

Services Indu

Sector contribution

111.52

303.70

450.59

83.54

185.30

313.54

0

100

200

300

400

500

2004-05 2008-09 2013-14Import Export

CAGR

Exports

16%

CAGR

Imports

17%

Trade profile (USD billion)

India is one of the major G-20 economies19th largest exporter and 10th largest importer in the world

China

11% A

% contr

China

5%

UAE

10%

USA

13%

Singapore

4.5%

% contribution to total exports

Key export destinations

1.81

1.84

1.91

1.91

1.93

1.95

2.16

0.0 0.5 1.0 1.5 2.0 2.5

India

Germany

Brazil

nited Kingdom

Canada

China

USA

FDI confidence index ranking- 2014 (A.T. Kearney Survey)

Rank 7

Sector wise FDI Inflows

The 7th

(World Investm

USD 223 bi

April


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Growing domestic consumer base Large, young human capita

Rising disposal income and

urbanization

More than 800 million pe

the age of 34 years

223291

347

588

174289

654

1724

0

1000

2000

0

500

1000

1991 2001 2008 2030

Urban population (million) and per capita

disposable income (USD)

Urban population (million)

Per capita disposable income

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2021

60 and above 55-59 50-54 45-49 40-44

Growth Enablers

Strong Democracy Progressive Economic ReformsInvestor friendly Government

InitiativesVisio

Democratic set up and strong economic reforms


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T

Investo


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17%State’s share in number of factories,

higher than any other State

Sta

in

Tamil Nadu – India’s economic powerhouse

11%Contribution to India’s

industrial output

8.4%2nd largest contributor to

India’s GDP

Contribution to India’s

renewable energy capacity,

higher than any other State

India

by geo

28% 4

$€ £¥

6%Ranks 3rd in terms of

cumulative FDI inflows (USD 16

billion from 2000 to 2014)

18%Number of India’s technical

universities, higher than any

other State


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Only State in India with 4 international

airports offering direct connectivity to over 20countries

Second longest c

with 4 major portrade cen

Tamil Nadu is well connected to the major cities of the world both by air and sea routes

Strategic Location


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As of 2014-15, T

capacity of over 2

power surplus by 2

Excellent road connectivity – nearly 200,000 km

of road network and 60,000km maintained by

National and State highways department

Largest telecom bandwidth and highest tele-

density in India with 14.8Tbps, 3 submarine

cables and 8.4% of total subscriber base in

India

With a combined

over 110 million to

in Tamil Nadu accmajor port capacit

Railway network of about 6,700 km and 690

railway stations providing freight and

passenger connectivity from major urban/ruralnodes with the country

Only State in India with 4 International airports

handling more than 13.5 million passengers

yearly

Tamil Nadu – infrastructure readiness


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11.55 13.18 14.9515.53 15.21 18.39

21.21 22.61 23.82 24.21

20.8923.82

27.76 30.36 33.5635.88

40.4743.53 45.93

49.73

0

10

20

3040

50

60

70

80

90

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Services Industry Agriculture

GDP Growth (at 2004-05 constant prices) – USD billion State’s GDP c2013-14, regi

comparison w

GDP growth

and Services s

of 9% and 10%

On a PPP ba

higher tha

Denmark, Ne

ranking amon

the world

3025

19 18

0

5

10

15

20

25

3035

Leather and leatherproducts Auto & autocomponents Textiles Electronics

Tamil Nadu’s contribution to India’s industrial output (%)

Tamil Nadu – economy propelled by vibrant industrial sector

Tamil Nadu Robust Services Sector


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>60% of State’s

GSDP

8870

11350

0

2000

4000

6000

8000

10000

12000

14000

2011-12 2012-13

Service sector contribution to GSDP

Exports of Computer Softwa

Goods – USD M

Exports of Software and electronic goods hav

last 3 years

TIDEL Park, with a total area

of 1.28 million sq. ft is the

largest in India

Over 1780 software units in

the State

Lan

up

Inf

22 approved IT parks Full fledged wide area network

and data centre (largestbandwidth in India – 13.52tbps)

28

Eco

State Government is establishing an IT

Investment Region near Chennai

covering an area of 1600 sq. km with a

total investment of USD 1.7 billion.

Land acquisition has been initiated.

Tamil Nadu – Robust Services Sector

Stellar performance of IT/ITES Sector

0%

20%

40%

60%

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14(P)

A t & A t t h b f I di


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Auto & Auto components hub of India

21 %Contribution to India’s

Automobile exports

20%Contribution to the total

installed of vehicle

production

1st Tamil Nadu is the largest contributor

to the automobile sector in India

in terms of Industrial Output

Highest cumul

various secto

total FDI i

20.0

63.5

13.711.0

18.8

Tamil Nadu Maharashtra Haryana Others All India

Automobile output (USD Billion)

Strong base of

Automobile

componentmanufacturers

in TN

35%

17%13%

9%

13%

13%

Segment wise production of Auto components

Body and structural

Engine & exhaust

Electronics and electrical

Interior

Suspension and braking

Drive transmission and steering

Major Auto Components Manufact

Major Auto Manufacturers

St i H E i i t

http://www.google.co.in/url?sa=i&source=images&cd=&docid=FGAPgYgvprM0fM&tbnid=Q5P2rPOFQdcGbM:&ved=0CAgQjRw&url=http://carsalesdata.in/why-mrf-is-likely-to-be-a-dominant-player-in-indian-auto-industry&ei=LybDU-uWHoyLyATu6YGADg&psig=AFQjCNFPpXqR6tkO1zxfHWdMdeWHgxs2vw&ust=1405384623627467


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Heavy Eng ineering

Tamil NaduStrong presence

• Tamil Nadu ranks 2nd in ‘General Purpose’ and ‘Special

Purpose Machinery’ with 18% and 11% contribution to

total India’s output respectively

• The State also ranks 5th in ‘heavy electrical machinery’

sector contributing 6% to total India’s output in thissegment

Strong presence in Heavy Engineering sector

HeavyEngineering

TamilNadu

Priority sector inthe State’s Vision

2023

Industrialinfrastructure - available

andproposed

Large vendorbase of MSMEs Existing

Engineeringclusters

Strongavailabilit

y ofskilled

workforce

Tamil Nadu’s competitive advantage Companies in Tamil Nadu

0.4

1.70.9

3.8

Heavy Electrical General Purpose

Output in USD Billion

2008-09 2011

P f ll d l d l t i T til


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0% 20% 40% 60% 80% 100%

Spindles

Rotors

Knittingmachines

Looms

Composite

weaving

Installed capacity as a % of total capacity in India (Non SSI

units)

Tamil Nadu Rest of India

20% contribution to India’s total Exp

Garments

58% of total textile Mills in IndiaNadu (inclusive of SSI)

Textile Industry in Tamil Nadu Total Invested Capital in all the

Constitutes 28% of total employand Apparel sector

Textile and apparel sector together p35% of population in the State

Tamil Nadu houses more than 40% of total installed capacity of Spinning industry in In

Tirupur is the biggest Knitting Cluster contributing 90% of Knitwear exports from Indi

35-40% contribution to total Yarn Production in India in last 5 years

The State has 2614 Hand Processing Units (25% of total units in India) and 985 Power

total units in India)

Advantage

Tamil Nadu

Presence of well developed clusters in Textile s

Key Textile Cluster: Tirupur


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Tirupur

Tirupur is known as the Knitting City of India

The District houses more than 6000 Textile units which predominant

Garments

Tirupur currently accounts for knitwear exports of over USD 2 Billion (90%

European countries are the major importers of Tirupur Textile Products (ma

In order to strengthen and promote the Textile Industry, a number of initia

by TEA (Tirupur Exporters Association):

Tirupur Exports Knitwear Industrial Complex

Inland Container Depot

TEAKTEX : Garments Processing & Production Complex

NIFT-TEA Knitwear Fashion Institute

Nethaji Apparel park

TEA-St John Logistics

TEA-E-Readiness Center : Jointly with Microsoft

India Knit fair

0

500

1000

1500

2000

2500

1984 1994 2004 2010 2013

Exports from Tirupur (USD

million)

24%

11%

8%40%

4%

8% 5%Type of Units in Tirupur (100%= 6250)

Knitting Units

Dyeing & Bleaching

Fabric Printing

Garment making

Embroidery

Other Ancillary Units

Compacting and

Calendering

GlobalCompanies

sourcing fromTirupur

Key Textile Cluster: Tirupur


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Strong presence in Electronic Hardware sector

Tamil Nadu is the 3rd largest manufacturer of Electronic Hardware in IndTamil Nadu’s contribution to the national electronic hardware output has increased from 10 % in

18% in 2012-13.

Tamil Nadu has over 23 Electronic Hardware Technological Parks located in major IT centric Special Zones(SEZs) of Sriperumbudur, Oragadam, and Mahindra World City.

329

931740 752

573726

1,0671,207

178 270 191413

19 2 12 10

2008-09 2009-10 2010-11 2011-12

U S D M i l l i o n

Production of major subsectors in the industry

Manufacture of Electronic Components

Manufacture of computers and peripheral equipment

Manufacture of communication equipment

Manufacture of consumer electronics

17%

14%12%

3%

1.76%

1.54%

0.96%

0% 10% 20%

Tamil Nadu

Karnataka

Uttar PradeshMaharashtra

Kerala

Delhi

Gujarat

Andhra Pradesh

Share of Top States in Electronic Har

L h h b f I di


17/33

Heavy Eng ineering

Tamil Nadu

Leather hub of India

Chennai Vellore

TrichyErodeDindigul

Leather cluster in Chennai

identified as among the

Top 10 most dynamic

industrial locations globally

– 2009 UNIDO Report

750

Operational

Tanneries G

Number of U

2013-14

•

Leather sector in TN accounts for ~60% of India’s production

• TN accounts for 36% of total exports from the Country

• Central Leather Research Institute (CLRI), Chennai is the world’s largest Leathe

• TN accounts for 70% of the Tanning capacity of India and 6% of the Global lea

• Provides direct employment to 2.5 million people

Sivakasi A fireworks manufacturing hub


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Heavy Eng ineering

Tamil Nadu

Sivakasi – A fireworks manufacturing hub

• Sivakasi is a town in Virudhunagar District of Tamilnadu

• World renowned for fireworks (Pyrotechnics) production with a remarkable

less than 1% accident rate

• Accounts for USD 80 Million exports of Safety Matches, Printing and

Fireworks in 2013-14

90% India’sFirework

production

450 FireworkFactories

0.5 Milliondirect

employment

0.2 Millionindirect

employment

60% of Safetymatch

production

4500 MatchUnits

250

203

Safety Matches Printing F

Production in 2012-13 (USD M

T il N d i ti d k l d it l h b


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Highest number oftechnical universities inthe country

Over a million engineers

and graduates are added

to the State’s talent pool

every year from over

1900 colleges

High quality human focus sectors – mec

electronics, compucommunication, civbiotechnology dom

More than students enroin various prthe State

State Government has set up wo

Centres of Excellence (CoE) in the fo

AutomotiveSolar and clean technology

Agricultural practices

Water conservation

Construction

Aerospace

Basic sciences

Nano technology

GoTN is setting up an innovatstudents, academic institutions and

Tamil Nadu – innovation and knowledge capital hub

ITIS – Industrial Training Institutes

Engineerin

g Colleges

Polytechnic

sITI

Indl

Schools

Educational

infrastructure572 501 699 635

Education infrastructure in Tamil Nadu

Tamil Nadu – Strong urban social and educational infra


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Other cities including Coimbatore, Madurai have also

featured in the most livable cities in India list

Tamil Nadu is home to some of the best educational

institutes in India – Indian Institute of Technology –

Chennai, National Institute of Technology – Trichy, Anna

University, VIT University, PSG College of Technology etc

State Government is implementing various sustainable

initiatives in areas of urban transport, renewable energy,

environment services and urban redevelopment

Chennai has consistently ranked among the

top 5 “most liveable cities in India” from

2010 to 2013

Chennai rated among the world’s 19

fastest growing cities

Tamil Nadu Strong urban, social and educational infra

Tamil Nadu – Robust Services Sector


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U.S.A

15%

U.K.

13%

Sri Lanka

19%Malaysia

22%

Singapor

e

7%

Australia

2%

Others

22%

Country-wise break-up of international

tourists in Tamil Nadu

72100

118 114141 188

244

0

50

100

150200

250

300

2007 2008 2009 2010 2011 2012 2013

Tourist arrivals in Tamil Nadu – million person

Tamil Nadu ranks 1st in terms of domestic

foreign tourist arrivals in India

Tamil Nadu Robust Services SectorStrong Tourism Footprint

• 244 million domestic tourists and 3.9 million

foreign tourists visited Tamil Nadu in 2013,

indicating a CAGR of over 20% from 2007

• Chennai, Madurai, Kodaikanal, Rameswaram,

Kanniyakumari, Tiruchendur and Tiruvannamalai

account for 50% of the total tourist arrivals

• Tourism anticipated to grow at a robust pace

due to the emergence of the region as a key

business and cultural hub

• Investment of USD 1.7 billion planned to

promote growth of tourism and hospitality sectors

• Chennai has emerged among the “Top 5 Global

Cities to Visit”, as per a recent report by New York

Times, Rough Guides and Lonely Planet.

Tamil Nadu – new paradigm for industrial growth


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Tamil Nadu new paradigm for industrial growth

Productclusters

Industrialestates

Specialeconomiczones

Inlad

• About 50 product clusters inTamil Nadu focusing primarilyin automobiles, textiles,engineering, leather,chemicals, etc

Level of integration

• 92 multi-sector industrial estates present across the state

• 36 operational SEZs in Tamil Nadu in the following focus areas:

• Multi-product• IT/ITeS• Auto/auto ancillaries• Electronics hardware• Hi-tech engineering• Food processing• Bio-informatics• Footwear• Transport equipment

• Speci100 s

• Indus• C• M

• Petro Petro Regio

• IT In• Aeros• Indus

Phase I

Phase II

Phase III

Landmark developments – Industrial Corridors


23/33

INDUSTRIAL CORRIDORS Master planning of CBIC in progress – funded by Cooperation Agency (JICA)

Project development to be on fast track

Investment potential of over USD 1 billion

Infrastructure development in corridor area in progre

Agro & foodprocessing

Auto & autocomponents

Biotech andpharma

Chemicapetroche

Heavyengineering

Infrastructure IT&ITeSRenew

energ

1

2

3

4

5

6

Chennai Bengaluru Industrial Corridor (CBIC

Chennai Tiruchirappalli Industrial Corridor (CT

Coimbatore Salem Industrial Corridor (CSIC)

Coimbatore Madurai Industrial Corridor (CM

Madurai Thoothukudi Industrial Corridor (M

Chennai Thoothukudi Industrial Corridor (CTI

Proposed investment in other industrial

~USD 19.5 billion

Landmark developments Industrial Corridors

Landmark developments – P t l Ch i l d P t h i l I t t R i (PCPIR)


24/33

.

PCPIR is a specifically delineated investment region

planned for the establishment of manufacturing facilities

for domestic and export -led production of petroleum,

chemicals and petrochemicals

Spread over an area of 257 sq. km. of brown field area in the

coastal districts of Cuddalore and Nagapattinam

Planned investments:

Deep sea port with FSRU for import of LNG

Gas based power plant

Petrochemicals complex through partnership with private co-

promoters

Petrochemical downstream plants and fertilizer complex

The region is planned by Tamil Nadu Industrial Development

Corporation (TIDCO)

Anchor Tenant already in place - Nagarjuna Oil Corporation Limited, is establishing

a 6 MMTPA petroleum refinery which will be commissioned in 2017. This refinery will

be expanded to 12 MMTPA capacity by 2020

Special Purpose Vehicle (SPV) named TNPCPIR Company Ltd and TNPCPIR

Development authority would be formed to manage and develop the PCPIR area

Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR)

Landmark developments – Aerospace and Logistics Park


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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.The government has planned to set up a maintenance, repair andoverhaul (MRO) facility on a 50 acre area near the Chennai airport.

It has also been proposed to develop a components manufacturing

park for the aerospace industry over 300 acres in Sriperumbudur,

Kanchipuram district

Another aerospace park has been planned at Perambalur SEZ , with

focus on manufacturing and assembling of aircrafts

Land for aerospace park already being allotted

Master planning completed

Development jointly by Government of Tamil Nadu and private

developers

Total investment ~USD 800 million

p p g

Landmark Developments – Chennai Metro Rail Limited


26/33

Phase I construction is in progress

An SPV named ‘CHENNAI METRO RAIL LIMITED’ as a Project

Development Agency incorporated recently

ALIGNMENT DETAILS Proposed alignment includes routes within Chennai connecting

important land marks like Airport, CBD, etc to interchanges with the

existing MRTS network

ESTIMATED PROJECT COST:

The estimated construction cost is USD ~ 3.8 billion for a route of ~

45 km. About 55% of the corridor is underground and remainingcorridor is elevated.

DPR preparation for USD 6 billion Chennai Metro Phase II is under

progress

p

Phase II

Landmark Developments – Chennai Mono Rail


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Total network of about 21 km planned with an

ambition to reduce traffic congestion on 3 major

routes. Planning considers multi-modal integration

with Metro and MRTS network

ALIGNMENT DETAILS

The route will be Poonamallee -Porur-Kathipara and

a link from Porur to Vadapalani along Arcot Road

ESTIMATED PROJECT COST:

The estimated construction cost is USD 540 million

2 firms have evinced interest in building the monorail

project, which is likely to begin by end of 2015

Monorail project also under co

and Tr

Vision Tamil Nadu 2023 – Strategic plan for infrastructur


28/33

Vision Tamil Nadu 2023 – Strategic plan for infrastructur

Sustained growth in manufacturing at an average 14%

every year

Almost 80% of infrastructure investment planned in

energy, transport, water supply, industrial/commercialactivities and urban infrastructure. GoTN has already

identified 217 high priority projects

Commitment from GoTN through Project preparation

fund and other vehicles to enhance financing sources for

infrastructure projects

42% of the targeted investment is proposed to be under

the PPP model providing great opportunity for players ininfrastructure development and financing businesses

Planned invefor infrastruc

development

USD

250 billion

VISION OBJECTIVESVision Tamil Nadu 2023 – Strategic plan for infrastru


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Sustained GSDPgrowth of 11% for

next decade

Per-capita income ofUSD 10,000 per

annum

Augmentation inannual budgetary

allocation toinfrastructure to

10% of GSDP

Implementation ofspecific projectlinked to vision

themes

Universal access tohousing, basic urbanservices, irrigation,healthcare and skill

development

VISION OBJECTIVES

D E V E L O P M E

N T A L P R O J E C T S

Industrialcorridors,investme

ntregions

andmanufact

uringzones

Incrementalcapacityof 150MTPA

including15

millionTEU

containers

Capacityexpansio

n tohandle

80mpassenge

rs peryear

Everyvillage tohave OFCnetwork

andbroadba

ndconnecti

vity

2000 kmof 6-8lane

expressways.

5000 kmof 4 lanehighways

,

2.5million

affordable houses

Piped24X7water

supply toall

citizensacross

the State

Centres ofexcellenceand world

classuniversitie

s

Business Opportunities


30/33


• Yarns and fibres

•Apparels

•Technical textiles

•Infrastructure development

TEXTILES

•Agriculture / horticulture

•Infrastructure projects such

as food and agri business

parks•Export-oriented processing

FOOD AND AGRI BUSINESS

•Auto & auto components

• Auto city

• Automobile SEZs

AUTOMOBILE AND AUTO

ANCILLARIES

•R&

•B

•P

p

BIOTEC

•Maintenance, repair and

overhaul (MRO)

•Aircraft parts manufacturing

•Aircraft assembling

AEROSPACE

•Solar/wind power

equipment manufacturing

•Renewable energy power

plant

RENEWABLE ENERGY



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•Energy

•Transport

•Urban Infrastructure

•Industrial Infrastructure•Other PPP projects

INFRASTRUCTURE

•Basic chemicals

•High performance chemicals

•Refinery downstream projects

•Specialty and fine chemicals

CHEMICALS AND

PETROCHEMICALS

•Precision Engineering

•Heavy electrical industry

•Industrial machinery and

machine tools

HEAVY ENGINEERING

•IT

• Vocatio

• Cen

• Te

SKILL

•Computer hardware and

software development

• BPO

IT & ITES

• Electrical equipment

•Consumer electronics

ELECTRONICS HARDWARE

Tamil Nadu – reinforcing investor confidence time and again


32/33

Tamil Nadu has been ranked 2nd as per the “Economic Freedom of

the States of India 2013”

Tamil Nadu is the most preferred destination for stin terms of incentives, investment policies a

Tamil Nadu will be the most urbanized State in 2030 with 67% of the

State’s population residing in towns and cities , up from 48.5% in 2011

Tamil Nadu has secured 2nd position in the list of “bes

States in India in the last decade (2003 – 2012)”

In March 2015, Tamil Nadu has been ranked as the No.1 State in

development parameters like economy, power, roads a

Investment Promotion Facilitators


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Key Contacts

Electronics Corporation of Tamil Nadu Limited (ELCOT)

692, M.H.U. Complex, II Floor, Anna Salai,

Nandanam, Chennai-600 035

Phone: 91-44-6551 2330

E-mail: [email protected]

Website: www.elcot.in

State Industries Promotion Corporatio19-A, Rukmini Lakshmipathy Road, E

Phone: 91-44-285


Website: www.sipc

Tamil Nadu Industrial Development Corporation Limited (TIDCO)19-A, Rukmini Lakshmipathy Road,

Egmore, Chennai-600 008

Phone: 91-44-2855 4421


Website: www.tidco.com

TN Industrial Guidance and Export Promotion Bureau

19-A, Rukmani Lakshmipathy Road,

Egmore, Chennai-600 008

Phone: 91-44-2855 3118

Website: www.investingintamiladu.com

Tamil Nadu Urban Infrastructure 12, Theyagaraya Road, 1 st Floo

T.Nagar, Chennai –

Phone: 91-44-2815 3104E-mail: cmd@tnuif

Website: www.tnu

Tamil Nadu Industrial Investment Corporation Limited (TIIC)

New no: 692, Anna Salai, Nandanam,

Chennai-600 035

Phone: 91-44-2433 1203Fax: 91-44-2434 7209


Website: www.tiic.orgTamil Nadu Small Industries Developme

Thiru Vi Ka Industria

Chennai - 600 0

Phone: 91-44-2250 1461, 2250 14

0506, 2250 12

E-mail: sidco@vsn

Website: www.sidco.tn
http://www.sipcot.com/http://www.sidco.tn.nic.in/http://www.sidco.tn.nic.in/http://www.sipcot.com/

Documents

Tamil Nadu State Profile and Investment Guide