View Full Version : India - Manufacturing Sector
January 28th, 2011, 07:01 PM
This thread will focus on manufacturing sector and news relating to it. I believe that manufacturing base is likely to increase in India in the near future. So, I might as well have a new thread for it. I welcome any post relating to the Manufacturing Sector.
January 28th, 2011, 07:06 PM
Lavazza announces new manufacturing facility in India
Announcement / Corporate January 28, 2011, 19:02 IST
Plant to be operational by mid-2012
To cater to South Asia operations of the company
Investment reinforces Lavazza’s commitment in the Asia-Pacific region
Lavazza, a world leader in the coffee market, has taken yet another key step in its growth strategy in India. Following its acquisition of Barista Coffee Company Limited and Fresh & Honest Café Limited in 2007, Lavazza has laid the foundation stone for its new production plant in India that will be built in the industrial district of Sri City, in Tada region in the state of Andhra Pradesh. The complex will permit modular coverage of the growing demand for coffee on the Indian market and in the Asia-Pacific region. The project was presented to the Indian press by Mr. Giuseppe Lavazza, Vice President and Mr. Marco Lavazza, Development & Acquisitions Manager of the Lavazza Group, who illustrated the company’s development strategies and examined the history of success that has accompanied the company over the last 115 years.
Dr. J Geeta Reddy, Minister for Major Industries, Sugar, Commerce & Export Promotion, Government of Andhra Pradesh, present at the event, welcomed the investment by Lavazza and congratulated the family on the new plant being setup in Andhra Pradesh.
Mr. R Shivashankar, Director South Asia for Lavazza described the commercial activities that Lavazza is planning to conduct in India over the next few years. The occasion was graced by the presence of Italian Ambassador to India, His Excellency Giacomo Sanfelice di Monteforte and Mr. Sam Bobb, Principal Secretary, Government of Andhra Pradesh.
Mr. Giuseppe Lavazza, Vice President of the Lavazza Group said, “Building a new hi-tech, high-capacity production facility in India to guarantee excellent standards of quality means committing ourselves to continue the concrete efforts made in this country for the last four years. Our intention and dream is to make India our second largest market of reference following Italy. And, I have no doubt that this ambitious objective will become reality by combining the know-how, history and values of our company with the excellent professional skills we have found here in India and, of course, by offering consumers the authentic Italian espresso experience, which we expect to become a way of life and a passion for a significant sector of the Asian population. I would like to add that, in terms of procurement, as much as possible the plant will use the excellent local material that is available, which also offers good value for money”.
Speaking about the India strategy, Mr. Marco Lavazza, Development and Acquisitions Manager of the Lavazza Group said, “Our presence in India will be long-term, and is aimed towards broader internationalization of our Group and the objective of being the leader in the espresso coffee sector.”
“The plant will be constructed with the highest building standards and guaranteed by quality certifications with a clear focus on innovation, environment and quality of life in the workplace”, he added.
The industrial complex, comprising of five buildings, will be situated in an area of approximately 40,000 square metres and will house over 150 employees. The investment — worth close to €20 million – is part of the development plans that have distinguished Lavazza in recent years, i.e. promoting internationalisation through a careful policy of investments and acquisitions. Modular growth is envisaged for what will be the hub of the entire Asia-Pacific region; production will initially cover the Indian market and will subsequently be extended to other Asian markets. Lavazza’s intent is to rely on top local professionals and bolster “zero-kilometre” production in order to minimise shipping costs and therefore the environmental impact of the product.
Mr. Sam Bobb, Government Official, Andhra Pradesh said, “Today, the state of Andhra Pradesh is in the forefront of industrialization in the country and we are happy to note that Lavazza is setting up their manufacturing plant at Sri City. This is indeed a proud moment for us and the government extends its complete support for the establishment of the facility.”
Mr. R. Shivashankar, Director South Asia, Lavazza said, “Construction of this production plant represents a great opportunity for Lavazza to bring its qualitative assets to these areas. The company will transfer all of its expertise in the production of high-quality coffee to the Sri City complex”.
The investment is expected to consolidate Lavazza’s presence in India which entered the country through its acquisition of Barista — the second-largest chain of coffee shops in the country, with around 200 points of sale — and the Fresh & Honest Café company, a leader in the Hotels, Restaurants and Catering (Ho.Re.Ca.) sector, with traditional machines using beans and the Lavazza Blue capsule systems.
LUIGI LAVAZZA S.p.A.
Established in 1895, the company has been owned by the Lavazza family for four generations. Lavazza is one of the leading roasters in the world, a leader in Italy with a 48% share of the retail market in value (source: Nielsen). It operates in over ninety countries through eleven subsidiaries. The company employs approximately 4000 people, operates globally in the Home and Away-From-Home sectors and forecasts a turnover of €1,1 million in 2010. Lavazza has 20 years of tradition in the production and marketing of systems and products for the portioned coffee segment.
The Board of Directors of Luigi Lavazza S.p.A. is composed of Alberto Lavazza, President; Giuseppe Lavazza, Vice President and Marketing Manager; Francesca Lavazza, Corporate Image Manager; Marco Lavazza, Development & Acquisitions Manager; Antonella Lavazza, Coffee Shop Business Project Manager; Gaetano Mele, CEO; Alessandro Lorenzi, Corporate Central Manager; Tullio Toledo.
ABOUT SRI CITY
Evolving on the border of Andhra Pradesh and Tamil Nadu in India, Sri City SEZ is spread over 5000 acres and offers a hassle-free operational environment in the free trade zone and robust infrastructure of an industrial park. Sri City also has the advantage of a Domestic Tariff Zone offering easy access to supplier networks; a distinct advantage of well-established connectivity by rail, and road with proximity to three seaports and two airports. Sri City Special Economic Zone is the largest private sector multi-product SEZ in South India, and this exclusive free trade zone in India is designed to benchmark with the best export zones and industrial parks across the globe.
January 28th, 2011, 07:21 PM
A manufacturing strategy for India
Indian manufacturing has failed to be an engine of growth, which it must urgently become. Rather than exceeding and leading the overall growth of the economy as it should, manufacturing has just about come along. Moreover, the formal manufacturing sector has added few jobs in the past decade.
And worryingly, it is losing depth. While China's GDP is 3.8 times larger than India's, its production of machine tools, the 'mother industry' of manufacturing, is 55 times more! India needs a strategy to grow manufacturing 12% to 14% per annum, create 100 million new manufacturing jobs in the next 15 years to realise its 'demographic dividend', and create more depth in capital goods industries and innovation for its manufacturing sector to be competitive and sustainable.
China's remarkable success in manufacturing is the result of a strategy to win, as was the growth of the other Asian industrial powerhouses, Japan and South Korea. Having built its manufacturing base, China is scaring the world with its strategy to build 'indigenous innovation'. India too has announced its intention to strengthen innovation. An innovation strategy must be closely intertwined with a manufacturing one.
Science results in innovations when ideas are converted into real things that people can use. Therefore, it is not surprising that China's strategy to stimulate 'indigenous innovation' includes policies about what must be manufactured in the country, what the ownership of these enterprises must be, and what ownership rights these enterprises must have on the technologies used in their products.
Indian policymakers are dancing around the same issues. The idea of an industrial strategy evokes fears of returning to a planned economy. India must be open to foreign investments and new technologies from abroad. But they must result in jobs, innovations, and manufacturing depth in India. Appropriate receptors are required within a developing economy to absorb foreign technology.
The receptors are production organisations in the host country that use the technology to produce things for the market - domestic or export. Merely an R&D lab as a counterpart to a foreign R&D lab will not result in the absorption of technology. Indeed, even domestic R&D labs require production organisations to convert their ideas into usable innovations: hence the need for strong industry-lab partnerships.
The quality of the industrial partner in the host country and its ambitions to learn, apply, and improve the technologies determines whether the technology is well absorbed or not. This has been empirically established by studies of the growth of technological capabilities within developing countries, including Indian experience in the auto and pharma industries.
The local partner must have an 'industrial' orientation, not merely a 'trading' one: a long-term ambition to create an institution with technical depth, not merely an ambition to sell things and make quick profits. Therefore it is not surprising that absorption most often happens in private sector companies, which have ambitions to prove that 'it can be done in our country, and we will some day do it even better than you'.
This is the spirit that drove the Japanese and Korean industrialisation strategies. In the absence of enough such private sector companies, governments turn to PSEs as the reliable receptacles for receiving the foreign technologies, which is the case in China. Indian strategy should wean itself away from PSEs. However, for India to succeed in strengthening 'indigenous' innovation, our policymakers must consider the question of who are good receptors.
A strategy for growing 'Indian' innovation/industrial capabilities must explain why 'Indian-ness' should matter and what is 'Indian'? These questions surface, not only in India, but even in the US, when defence, telecommunications, and security are involved. Governments are accountable to their people for security - even if they leave industrial development to market forces.
Therefore governments must ensure that the means for maintaining security can be commanded by them whenever required. So, they would require that organisations in critical, security-related areas have national security as an objective overriding their obligations to their financial stakeholders. This is the reason why governments may insist that defence and security must be in public hands; and if not , then in the hands of 'domestic' companies.
But what is a 'domestic' company? A company must be responsible to its shareholders, wherever they may be. Whereas national governments, whether elected or not, must be principally accountable to their own citizens. The mismatch between the objectives of global corporations and national governments is leading to thorny governance issues even in the US: of reconciling what accountability means to a global corporation and what it means to a national government.
China's approach is very clear. Policies will be framed to strengthen domestically-owned and managed capabilities. One of the principal fears that foreign companies have is that China will steal their intellectual property. China has a large market that tempts foreign companies to stay even when Chinese government policies turn inhospitable, as regards intellectual property.
In fact, the Chinese government is framing IPR rules to further its own interests, suspecting that the rules being imposed on it have been devised principally to protect foreign companies' interests. China is using the lever of purchases by government agencies to develop indigenous technology.
It is also using the lever of national standards drawn up to suit local enterprises and shut out foreign competition. In contrast, India's position regarding IPR must be to actively engage in the discourse with global advocates of strong IPR. However, whatever these advocates propose need not be accepted as proven truths about the value of IPR. India must discover the best approach to IPR for stimulating the ongoing innovation it needs without creating monopolies through IPR rules.
The time has come for Indian policymakers to shape a national manufacturing strategy. The sustainability of India's growth story depends on it. We must, of course, overcome weaknesses in infrastructure and administration. But we must also address tough policy questions to promote Indian enterprises. And the strategy cannot be a return to a planned economy. Nor can it be an imitation of China. This is the challenge for Indian policymakers.
(The author is member, Planning Commission)
good idea ericos :cheers:
January 31st, 2011, 06:40 AM
K'taka set to be a semicon hub
After getting the cabinet nod for the Karnataka Semiconductor Policy 2010, the state IT department is planning to transform the state as the semiconductor hub of the country. The state, a pioneer in the IT revolution of the country, is now exploring options like partnerships with fab manufacturing countries, research and development organisations and also with academic institutions to explore possibilities for the growth of semiconductor companies located in the state.
The state has also offered various fiscal incentives to companies to boost the growth of electronic sector. Global semiconductor design and manufacturing market size is expected to be around $ 200 billion. The semiconductor design market in India was $6.5 billion in 2009 and is estimated to cross $7.5 billion in 2011. Currently, the state has a presence of more than 80 design companies like the AMD, Intel, Texas Instruments, Broadcom, ARM among others and it contributes to over 70 per cent of the overall India market.
Ashok Kumar Manoli Principal Secretary for IT BT and ST Karnataka State said: “We announced semiconductor policy last year focusing on the need of semiconductor sector. We now realized the need for a policy for manufacturing and has come out with Karnataka Electronics Hardware Policy and has earmarked Rs 25 crore as budgetary allocation for implementation of the policy.”
According to a recent report from ISA, by the year 2020 electronics consumption in India will reach $400 billion from its current share of $45 billion. Though India is a big consumer of electronic equipments majority of the semiconductor and electronic equipments are imported from countries like Taiwan, China, Singapore. Industry experts believe that it can act as a barrier for the growth of the sector in India, as it will lead to an import oriented market.
“India has to develop the manufacturing capacity to become a leader in the semiconductor business. Taiwan is one of the biggest fab country in the world and we are exploring various partnership programme with the country. Taiwan is also looking at possibilities of establishing electronic hardware zone in the state,” said Manoli.
Karnataka has recently signed an MoU with Israel’s MATIMOP, the Israeli Industry Center for R&D, for research and development partnership. “Other than these partnerships African country Rwanda is very keen on a MoU to draw benefits from the IT strengths of the state,” he said.
With the semiconductor policy government is also promoting establishment of solar farms and solar Photo voltaic manufacturing. The state government has set up the first solar farm in Bangarpet taluk of Kolar with a capacity to generate 3MW power. Two other plants of 3 Mw capacity are proposed to be set up in Raichur and Belgaum.
Earlier, in order to enable the semiconductor companies to avail the benefits enumerated in the Policy and to create awareness among the industrialists, The Department of IT, BT and S&T, Government of Karnataka organised a half-day event in coordination with ISA and MAIT.
January 31st, 2011, 10:28 AM
A manufacturing strategy for India
good idea ericos :cheers:
Thanks Think-Tank. At least someone here appreciates me.
January 31st, 2011, 07:24 PM
^^ me also :cheers:
LG to invest Rs 800 cr in growing Indian AC market
Korean consumer durables major LG today said it will invest Rs 800 crore in 2011 to add capacity and for other purposes in India, which it expects will become its largest air-conditioner market in the world by next year ahead of the current leader US.
The company is also aiming to more than double its annual revenue to cross a figure of Rs 40,000 crore in India from all verticals in the next four years.
"India is a strategic market for LG. We will invest Rs 800 crore this year for expanding our manufacturing capacities and other general purposes. We will add new lines in almost all segments," LG Electronics India Ltd (LGEIL) Chief Operating Officer Yasho V Verma told reporters here.
Flat panels, mobile handsets and rooms ACs will be the major growth drivers for the company, he added.
On its sales targets, Verma said: "We are expecting Rs 20,000 crore turnover this year and in four years, we want to achieve Rs 40,000 crore turnover."
The company had registered a total turnover of Rs 16,000 crore in 2010. It currently has two production facilities in Greater Noida and Pune.
On its AC business, LG Electronics Vice President (AC Overseas Marketing) Sewoo Park said: "The Indian market is globally number two in room AC category and it contributes about 18 per cent in our global sales. I hope, next year the Indian market becomes the number one in our global sales."
The global AC sales of the company stood at around $3 billion in last year and the contribution from the US was 30-40 per cent, he added.
The company estimates the current Indian AC market to be around 3.4 million units annually, valued at Rs 7,200 crore, which is growing at 26 per cent.
LGEIL had about 29 per cent share in 2010 in the domestic AC market and is aiming for 32 per cent share by this year. It today launched a range of 51 split and window ACs, priced between Rs 10,000 and Rs 55,000.
"We are targeting a turnover of Rs 3,500 crore from AC sales this year compared to Rs 2,500 crore in 2010. Eventually we are aiming for 36 per cent share by 2014," LGEIL Business Head (Airconditioners) Ajay Bajaj said.
When asked if the company would expand its AC production capacity in India, Park said: "To keep our projected market share by 2014, we will need about 5 million units production capacity of ACs."
He, however, declined to share details whether the company would expand the existing facilities or set up a new unit for enhancing its capacity.
LGEIL currently has two production facilities in Greater Noida and Pune with a combined AC manufacturing capability of 2 million units a year.
March 3rd, 2011, 07:15 PM
India among world's top 10 manufacturers: UN
India has emerged as one of the top-10 manufacturers of the world, primarily helped by strong economic growth, according to a UN agency.
The United Nations Industrial Development Organisation (UNIDO) has said India is listed as one of the top-10 manufacturers of the world in 2010.
India along with other leading developing economies such as Brazil and China showed strong performance in economic growth in 2010 and the manufacturing value added (MVA) of all these countries grew by over 10% last year, the agency said.
As per UNIDO's just released International Yearbook of Industrial Statistics 2011, the three nations' share in world manufacturing output has reached 32% compared to 20% 10 years ago.
UNIDO said that world manufacturing is showing first signs of recovery from the recent financial crisis.
"India tops developing countries (China excluded) in production of textiles, chemical products, basic metals, general machinery and equipment, and electrical machinery," the statement said.
The report noted that India has overtaken Brazil in the production of motor vehicles and now ranks second among developing countries after Mexico.
On the other hand, Asian competitors -- Thailand, Malaysia and the Philippines -- are ahead in the production of electronic goods such as computers and office equipment.
"The MVA of industrialised countries grew by 3.4% in 2010. However, developing economies were the major force of world industrial growth. In 2010, MVA of developing countries grew by 9.4%," it added.
March 21st, 2011, 04:39 PM
Everest Ind to set up new facility in East India
Press Trust of India / New Delhi March 21, 2011, 15:31 IST
Building material maker Everest Industries today said it will set up a new manufacturing facility in East India to cater to the growing demand as it aims to cross Rs 1,000 crore revenue in 2011-12.
"We are looking at setting up a new manufacturing facility in one of the Eastern states. The plant will be commissioned within a year and it will be fully operational in 15 months," Everest Industries Executive Director (Operations) Y Srinivasa Rao told PTI.
Rao, however, declined to share further details such as the possible location and likely investment for the construction of the plant.
Industry sources, however, said the company has been offered land by the Orissa government and the firm has also decided to go into the state.
When asked about its sales target, Rao said: "We cannot remain a sub-thousand crore entity. Our target is to cross Rs 1,000 crore revenue in next fiscal."
Everest is expecting its total income to grow 12-15% in this fiscal from Rs 660 crore in 2009-10, he added.
"For the last 4-5 years, our revenue has been increasing at 20-25% compound annual growth rate. This year it is slow because the market did not pick up well, and also because of our capacity constraints," Rao said.
Everest Industries currently has five manufacturing facilities in Kolkata, Nashik, Coimbatore, Kymore and Roorkee. It manufactures products like roofing materials, fibre wall boards and steel building solutions.
"We are seriously considering to expand our steel building solutions capacity as there is good growth in this business. We are looking at both expanding the existing plants and adding more facilities," Rao said, without giving details.
The company's current annual production capacity for steel building material is about 30,000 tonne at its Roorkee facility.
Besides, the company is likely to consider setting up a new factory for the fibre cement boards as it is at present utilising almost 100% of its 90,000 tonne of installed capacity across different plants.
The company is now undertaking de-bottlenecking of operations and other efficiency enhancement measures to increase productivity till the new plants come up, he added.
March 23rd, 2011, 06:51 PM
Please tell me if this is already posted somewhere:
Effort to give big push to manufacturing growth
The National Manufacturing policy, which aims to create massive employment opportunities and make India a manufacturing hub, is being discussed with Prime Minister Manmohan Singh and it would help catalyse manufacturing growth and sustainable development, Commerce and Industry Minister Anand Sharma said.
Originally, the policy had been announced by the beginning of this year but had been in the discussion stage and consultations were being held with other ministries before it was finally brought before the Cabinet for approval, he said.
The policy is being shaped to woo foreign investment and increase the share of manufacturing in the gross domestic product (GDP). "India's manufacturing growth is slow as compared to G-7 countries such as Canada, France, Germany, Italy, Japan, the U.K., and the U.S. India will soon change its growth strategy and increase manufacturing exports in near future," he added.
Referring to the use of green technologies, Mr. Sharma said the countries that possessed the green technologies should find ways and means to share those with the least developed countries which did not have the resources to adopt them. “The energy intensity is high in the Indian manufacturing sector and for that reason the usage of green manufacturing is vital in the country,'' he added.
March 23rd, 2011, 06:54 PM
also, from wikipedia:
India's National Manufacturing Policy
The National Manufacturing Policy of India was formulated by the Department of Industrial Policy and Promotion(DIPP), under Ministry of Trade and Commerce. It envisions increasing the contribution of manufacturing sector to 25% of GDP by 2022, doubling of employment in this sector, increasing the competitiveness of the sector and making India a global manufacturing hub.
Steps taken by DIPP to achieve above objectives:
Setting up National Manufacturing and Investment Zones (NMIZ) – state of art industrial townships developed and managed by a Special Purpose Vehicle (SPV). The first NMIZ shall be set up in Rajasthan along the Delhi Mumbai Industrial Corridor (DMIC).
Rationalization and simplification of business regulations to promote investor friendly environment.
Creation of world class infrastructure to assimilate technology i.e. green technology.
Capacity building and training (CBT), skill up gradations.
Creation of simple and expeditious exit mechanism for closure of sick units.
Incentives for equity partnerships or venture capitalist in manufacturing hub.
The new policy will have special emphasis to make India the workshop of the world, especially in the emerging green industries such as solar power
This , I assume, will be implemented as the DMIC begins to unfold. Finally, maybe we can narrow the gap between rich and poor and alleviate large chunks of population from poverty in one go.
March 23rd, 2011, 09:48 PM
and already a national innovation council has been set up. My understanding is that it has at least something to do with the national manufacturing policy.
March 25th, 2011, 07:41 PM
PM likely to chair manufacturing policy meet soon
BASEL (SWITZERLAND), MARCH 25:
A high-level committee chaired by the Prime Minister, Dr Manmohan Singh, is soon expected to discuss the proposed manufacturing policy aimed at increasing the sector’s share in India’s GDP to 25 per cent in the next decade.
“We have completed stakeholders’ consultations and all the inter-ministerial consultations and we hope that in a week after my return, a high-level meeting (will be held), which will be chaired by the Prime Minister,” the Commerce and Industry Minister, Mr Anand Sharma, told reporters here.
Mr Sharma is here to inaugurate the Indian pavilion at the world’s most coveted watch and jewellery show ‘Basel World 2011’.
The Finance Minister, Mr Pranab Mukherjee, had also made a mention of the manufacturing policy during his budget speech.
“The Government will come out with a manufacturing policy which will bring down the compliance burden on the industry through self-regulation and help make Indian industry globally competitive....we are ready now...,” Mr Mukherjee had said.
The Government aims to take the share of manufacturing sector, which contributes over 80 per cent to the country’s overall industrial production, in GDP from about 16 per cent to 25 per cent over a period of 10 years.
Under the upcoming policy, the Government has proposed to set up integrated greenfield mega-investment zones to attract global investment and latest technologies.
The Minister said increasing manufacturing share in the Indian economy is a priority as millions of skilled workforce is expected to join the segment in the near future. The new policy would also help in attracting greater FDI into the country, he said adding that it would also address labour and environment issues.
On his meeting with leading global watch makers, Mr Sharma said he asked them to explore the opportunities to invest more in India in the sector and also look for possible collaborations and setting up subsidiaries “which some of them are considering’’
March 28th, 2011, 06:55 AM
Push for giant factory hubs
JAYANTA ROY CHOWDHURY
New Delhi, March 27: Prime Minister Manmohan Singh will convene a meeting of a high-level committee this week to discuss national manufacturing and investment regions — envisaged as bigger than SEZs, covering states and even groups of states and having world-class infrastructure facilities.
However, the government will avoid the land acquisition controversies that engulfed SEZs (special economic zones) in these giant enclaves — the decision to buy land and set up industry within a national manufacturing and investment zone (NMIZ) will rest with companies.
The proposal will be the cornerstone of the National Manufacturing Policy, and is being described by mandarins as a “better copy of the Chinese model”. China’s special economic zones involve whole districts and in one case – Hainan – an entire province.
The first NMIZ being considered will be spread over three states along the western railway corridor — Haryana, Rajasthan and Gujarat.
Planning Commission advisers said Rajasthan was keen on the idea.
A proposal of the industry ministry to give NMIZs authority to waive all clearances faced opposition from the Planning Commission and legal experts.
Instead, officials said, plans were afoot for a single-window clearance, which was a vast improvement from the current situation where businessmen have to take 38 permissions on an average to set up factories in the country.
Some within the government say the idea may be opposed by states left out of the NMIZ race and sharpen the regional economic divide that is partly responsible for the growing Maoist violence.
Officials said a group of non-resident Indian CEOs had originally floated the concept after the UPA came to power in 2004.
The government adopted the idea in a different manner in its policy to establish a string of petrochemicals and chemical investment regions — or chemical hubs — in coastal states.
This policy was embroiled in controversy after farmers resisted land acquisition in Nandigram.
The differences over land acquisition and tax holidays in SEZs convinced the government that it should steer clear of them in the manufacturing policy, though the industry ministry was in favour of sops.
“The real idea is to create zones that will house manufacturers who can feed off each other, share facilities and trim costs ... the main giveaway from the government will be concentrated spending on world-class infrastructure,” said officials.
Infrastructure would include full global connectivity in terms of international airports, sea and land ports, dedicated rail and highway corridors, networked cities and high-speed Internet access.
Beijing had followed this path to turn southern China the most sought after investment destination in the world.
source: the telegraph
March 28th, 2011, 05:47 PM
BlackBerry may set up plant in India (http://www.business-standard.com/india/news/blackberry-may-setplant-in-india/130350/on)
After Nokia, Samsung, LG and other global brands, BlackBerry-maker Research in Motion (RIM) is likely to set up an Indian manufacturing facility in view of the potential within the country and the surrounding region and may develop the country into an export hub.
"India is an important and strategic market for RIM and its exciting and fast-growing mobile sector offers major potential for further expansion. As part of RIM's strategy in India, the company has been building its resources in order to support the growing opportunities," RIM spokesperson said when asked about plans to set up a plant here.
Canada-based RIM's Chief Information Officer Robin Bienfait will be in India to meet with major BlackBerry customers as well as a variety of current and prospective business partners, the company said.
"RIM is always evaluating investment opportunities, including manufacturing and logistics, and Robin plans to further explore such possibilities in India during her visit," it added.
The company, however, declined to get into the numbers of how much investment will be made for setting up a manufacturing facility and the volume of handsets to be manufactured, as well as the models.
However, going by industry norms, setting up such a plant may involve an investment of anywhere between $150 million and $250 million to begin with.
Sources indicated that Robin would be visiting Chennai, Mumbai and Delhi to identify a location for setting up the plant. If fructified, this would be RIM's first manufacturing facility in the Asia-Pacific region, comprising 18 countries in which BlackBerry has a presence and is growing significantly.
The development comes at a time when the company is embroiled in a controversy over security concerns about BlackBerry operations.
The company is constant dialogue with the government and the issue of lawful interception of contents sent using smart phones like Blackberry is being looked at as an industry issue rather than an individual case.
Sources said that these two are separate issues and the company is bullish on the Indian market and neighbouring countries and India may become an export hub for BlackBerry products, which has become one of the fastest growing smartphones here.
According to the latest reports available, RIM is one of the top five mobile phone manufacturers and as far as Indian operations are concerned, it has a retail presence in over 75 cities across the country.
Since India is very price-sensitive and a host of other global manufacturers' have a presence and enjoy cost advantages, setting up a manufacturing facility in India would certainly help BlackBerry as well with regard to the prices of its products.
The company has not revealed details on what products/models would be made here, but already has a presence in the smart phones segment and recently launched a tablet, dubbed BlackBerry PlayBook, overseas.
The tablet would be commercially available from April and is priced from $499 to $699, depending upon the storage capacity. It is yet to be launched in India.
March 29th, 2011, 08:26 PM
India among world's top 10 manufacturing nations (http://www.business-standard.com/india/news/india-among-world/s-top-10-manufacturing-nations/130597/on)
India has secured a place among the world's 10 largest manufacturing countries as the share of major industrialised economies in global factory output fell significantly in the last decade, a United Nations Industrial Development Organisation (UNIDO) report said today.
Efficient use of energy, helped by enhanced labour productivity and increase in exports of manufactured goods, helped the country secure its position among the top 10 industrial producers.
Even though the country had only 1.8% share in the world manufacturing between 2000 and 2010, India occupies the 9th position among the global leading manufacturing countries.
"Competitiveness of Indian manufactured goods in the global markets has significantly improved," Chief Statistician of the UNIDCO Shyam Upadhyaya said while releasing the report.
Higher output growth rates have allowed the Indian industry to improve major performance indicators such as labour productivity, he said.
The country has made significant progress in the use of energy for industrial production.
"This is borne out of the fact that in the last 10-years, India's manufacturing output grew by 7% average per annum while industrial energy consumption grew at much lower rate of 3.6%," Upadhyaya said.
The US tops the list of 10-top industrial producers followed by China, Japan and Germany. Brazil was at the bottom of the list.
"Ranks are not stable due to close competition of emerging economies. In the coming years, Russia, Mexico and Spain might increase their share and occupy higher position," he said.
Industrialised countries account for more than two-third of the world industrial output, but the share of developing countries is rising from 20% in 2000 to 32.1% in 2010.
As per the report, in the last decade, share of major industrialised countries such as the US, Japan and Germany in the world manufacturing has fallen.
The report said manufacturing output of three developing countries -- China, Brazil and India -- has grown by almost 10% on an average in the last decade.
The UNIDO report said manufacturing output grew by 3.7% in the industrialised countries after experiencing a severe decline in 2009.
It further said that China's industrial growth was unaffected during the recent economies crisis. "The country accounted for almost half of total manufacturing output of all developing countries in 2010," it said.
March 31st, 2011, 06:52 PM
X posting from telecom thread:
National Telecom Policy 2011 to promote domestic Telecom manufacturing
The government said that the National Telecom Policy 2011 (NTP’ 11) will have provisions to encourage domestic telecom manufacturing .
Telecom secretary R Chandrashekhar said NTP'''11 will surely have mechanism to gauze efficient use of spectrum and steps to promote indigenous manufacturing of telecom equipment.
"Need of promoting R&D (research and development) and manufacturing is important. Not just because it is one sector in which we aspire to be manufacturing destination but there are reasons to it," Chandrashekhar said.
He said promoting telecom manufacturing in India is important to leverage the benefits of the growing industry and reducing the trade deficit expected to arise from imports of electronic products that are used in the sector.
"Today you look at electronic projection which says that India is going to be USD 400 billion electronics market. If we continue to business as usual then USD 300 billion of our requirement will come from imports," Chandrashekhar added.
He said India''s electronics import will surpass oil import bill, which is around USD 100 billion.
Besides, Chandrashekhar said that due to security reasons, it has become inevitable to ignore initiative for promotion of domestic manufacturing.
"Domestic manufacturing is important from security point of view, which has become imminent," he said.
Trai chairman J S Sarma said the regulatory authority, in its upcoming recommendations on promotion of indigenous telecom equipment manufacturing, is going to raise levels of domestic manufacturing significantly.
"In our recommendation, we are going to raise level of domestic manufacturing significantly. We will give certain targets on year basis which is for 2013, 2015, 2017 and 2020" Sarma said.
He added, the Telecom Regulatory Authority of India will come out with the recommendations by the end of this week.
April 1st, 2011, 09:22 AM
More on the upcoming national manufacturing policy:
Govt mulls China-like mega manufacturing hubs
NEW DELHI: In an attempt to make India a manufacturing powerhouse , the government is mulling creation of manufacturing hubs that will offer infrastructure , facilities and incentives to manufacturers.
The department of industrial policy and promotion (DIPP) has put on fast track the national manufacturing policy, which seeks to create National Manufacturing and Investment Zones, or NMIZs.
Spread over 2,000 hectares, or about 8 sq km, these zones will be in line with the model adopted by China to boost its manufacturing sector. The DIPP is seeking sops such as tax incentives, flexible labour laws, easier exit norms for foreign investors and refinance facility for overseas debt for these zones, a government official said.
"Formal inter-ministerial consultations are underway," the official said.
Prime minister Manmohan Singh is expected to chair a meeting soon on the proposed policy.
The proposal gathered steam after finance minister Pranab Mukherjee's announcement in the 2011-12 Budget that the government will give a push to manufacturing.
The government plans to raise the share of manufacturing in the national gross domestic product (GDP) from the present 16% to 25% over 10 years.
"For sustained growth of GDP and productive employment for younger generation, it is imperative that the growth in manufacturing sector picks up," Mukherjee had said.
In a recent report, the United Nations Industrial Development Organization (UNIDO) put India among the top 10 manufacturing nations in the world, with a 1.5% share in manufacturing value added. The report, however, pointed out that India's production was far less efficient than that of other leading manufacturers such as Japan.
The new manufacturing policy will seek to remove many of the handicaps faced by the Indian industry. The 12th Five-Year Plan, which is still in the works, is also expected to focus on boosting manufacturing for large-scale employment generation.
"India needs manufacturing engines to generate 250 million jobs in the next 15 years," said Arun Maira, member of the Planning Commission.
People coming off agriculture over the next few years will need to be employed to carry forward the object of financial inclusion, and manufacturing will provide those jobs, he said.
The proposed policy is based on a discussion paper put out by the DIPP a year ago.
According to the paper, NMIZs will be a combination of production units, public utilities, logistics, environmental protection mechanisms and residential areas. They would subsume special economic zones and industrial parks within their fold.
India, however, may find it difficult to replicate China's model because of problems associated with acquiring land.
"We need to turbo charge manufacturing, but with issues such as land acquisition, banking alone on NMIZs will take time and a more comprehensive manufacturing policy is needed," said Maira.
The government hopes to get around the land issue through state procurement, unlike in the case of special economic zones where companies are required to buy land on their own.
The policy, however, is likely to rely extensively on private sector to develop these zones.
April 1st, 2011, 09:24 AM
^^I am particularly impressed by the 'flexible labour laws' news. It means that Govt can get around our archaic labour laws without upsetting the politically powerful labour unions.
April 12th, 2011, 09:06 PM
Pankaj Doval TNN
Did you know that India is the second-biggest market for lifts globally,second only to China.Surprised Dont be.Rapid urbanization and a spate of infrastructure development have seen the real estate sector boom and new office and residential complexes spring up in fast-urbanizing cities.Didier Michaud-Daniel,the global president of one of the worlds biggest elevator companies,Otis,was in India recently and TOI caught up with him to understand the market for elevators and how India plays a key role in this industry.Michaud-Daniel,who began his career in the company service sales in 1981,went on to take over as president in May 2008,just before the onset of the global economic recession.Excerpts:
What are the reasons that make India such a big
market for elevators How big is it in value terms compared to the global market
It is because of the construction activity in India.The country now is clearly the second-biggest market in terms of construction in the world.When you look at the global market today,it is approximately 500,000 units annually.While the biggest market is in China,which accounts for 285,000 units,the second is India with 50,000 units.In comparison,North America today is only 15,000 units.
May 1st, 2011, 02:24 PM
Total investment envisaged is Rs.50,000 crore
The Central Government would soon set up two plants to manufacture semiconductor wafers with a total investment of Rs.50,000 crore to boost India's electronic hardware production, Minister of State for Planning Ashwani Kumar said on Friday.
“Approval has been granted for it...we are taking it to the Cabinet for establishment of two large wafer and semi-conductor facilities costing Rs.25,000-crore each. The facilities are intended to breach the mismatch between demand and supply for electronic hardware in the country and are intended to act as a catalyst for fulfilling the XII Plan (2012-17) target of 11-12 per cent growth in the manufacturing sector,” Mr. Kumar told journalists here.
Referring to the XII Plan, Mr. Kumar said it was intended to pave the way for India to become the world's third largest economy by 2030-35. “The XII Plan will provide a major thrust on enhancing domestic capability of manufacturing electronic equipment. After 25-30 years, our import bill of electronic hardware may well exceed the import bill of fuel and oil. So that is the extent of mismatch between capacity and demand in the electronic hardware manufacturing area,” he said.
The Ministry of Planning and the Planning Commission have taken an in-principle decision to recommend to the government a policy framework for granting preferential access to domestic manufacturers during procurement of electronic equipment by the government. This would include all kinds of electronic equipment including those used in railways and telecom, he added.
Pointing out that the Planning Commission would set up a target of 9-9.5 per cent annual average growth during the XII Plan period, the Minister said: “The growth of the manufactured segment has not been up to the desired levels. We need our manufacturing sector to grow by at least 11-12 per cent during the XII Plan...but a growth of 9 per cent cannot be achieved without an average 4 per cent growth in farm sector”.
Mr. Kumar also said the Planning Commission also aimed at creating 20-lakh new jobs every year during the next Plan period in the manufacturing sector. The target was to have a 7 per cent annual growth in the power sector, while keeping in mind concerns for the environment and ecology. “The target is to increase power generation capacity addition from the estimated 52,000 MW in the XI Plan to 1-lakh MW in the next five-year period. Ours is still a modest target if we look at the fact that China's power generation capacity is 8 lakh MW annually,” he said.
On water, the Planning Commission has already discussed the possibility of creating a new Groundwater Law or Groundwater Framework for better management, rational use and availability of the precious resource, he said.
May 16th, 2011, 05:39 AM
Manufacturing revs up as trade deficit looms
India's rise as an emerging market star with seemingly insatiable demand means firms such as South Korea's LG Electronics are doing a booming business, but the country must rev up its manufacturing sector further or risk an unmanageable trade gap and a slowdown in its blistering growth.
The sector has started to catch up with India's world-famous IT and services industry to sate demand for anything from cars to air-conditioners to flat-screen TVs in the homes of hundreds of millions of newly affluent Indians who are ready to splurge.
The potential is vast for the likes of LG, which plans to double its India revenue in just four years pumping out appliances every few seconds at its factory outside New Delhi, products that were seen as rare luxuries before economic liberalisation.
But creaky infrastructure, erratic policies and a shortage of skilled labour mean factory growth has yet to emerge from the shadows of neighbouring China's prowess.
Manufacturing makes up about a third of China's gross domestic product (GDP) compared to a 16 percent share in India, the same as it was 20 years ago. New Delhi has set an ambitious target to raise that figure to 25 percent in a decade.
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"Manufacturers are becoming optimistic, but my feeling is that a huge level of manufacturing coming to India has still too many challenges," said LG's Chief Operating Officer Yasho Verma.
"This type of factory is OK. But if suppose LG decides tomorrow it should have 20 factories in India, then it's a major problem," he said in an interview at LG's plant.
The trade ministry has raised "serious concern" that the current account deficit may become unsustainable as India's trade deficit is set to balloon to $278.5 billion by 2014, a twenty-fold increase over a decade from the $14.3 billion in 2004.
"A large widening of the trade deficit can potentially result in payments difficulties," it said in a recent strategy document. "Such a situation is simply unacceptable because it may jeopardize the entire growth process."
India can no longer rely on a mix of its IT and service sector heft, remittances from its citizens working overseas and capital flows to finance a huge import bill of one of the world's fastest growing economies.
Manufacturing may need to plug the gap and provide jobs for the tens of millions expected to enter the workforce in the next decade who cannot be absorbed in farming or IT and services.
"If India is to achieve its stated goals on GDP growth and more importantly, to generate higher levels of employment for the growing young population, India's manufacturing sector has to enter into a new orbit of even higher growth," said a report by the Boston Consulting Group, which suggested India's manufacturing sector should aim to grow an annual 11 percent.
"If India has to target a high growth of 11 percent for its manufacturing sector over next 15 years, it needs to necessarily focus on growing its exports much faster," it said.
The government in February estimated manufacturing growth in the 2010/2011 fiscal year at 8.8 percent.
NOT PERFECT, BUT GETTING BETTER
Reuters spoke to four executives from manufacturing firms who have set up shop in India. The consensus was that, while things aren't perfect, they're improving rapidly and India is starting to shed its tag as a manufacturing laggard.
A maturing supplier base, the influx of seasoned global firms and an explosion in demand have brought transformation even in the last couple of years to a sector infamous for its red tape, countless licence requirements and pitiful output before liberalisation began in 1991.
"I've been here living in the country for 18 months, I've been coming here for 10 years, and I can tell you in the 18 months I've seen a huge difference," said John Flannery, the India chief executive of General Electric Co.
"The things that we would ask or expect of our supply chain today are quite different than what we could even think about two years ago. So it's changing very quickly," he said.
"You look at the best companies today, the best manufacturing companies today, they're very very sophisticated. And you wouldn't have seen that 5-10 years ago."
Indian suppliers no longer work on the principle of "jugaad" -- a Hindi word for muddling through problems with quick fixes that flourished during the days of the so-called "Licence Raj" -- which had created a culture of short-termism and inefficiency, LG's Verma said.
A more sophisticated supplier base makes it simpler and cheaper for foreign firms to set up factories on Indian soil and even look to India as a major exporter further down the line.
Cars leaving the assembly line of General Motors in India are now up to 98 percent locally produced, designed with the help of 2,000 engineers in the company's Bangalore offices.
Hyundai Motor Co has made India an export hub for its vehicles. From 20 Santros sold to Nepal in 1999, the firm exported 247,102 "Made in India" cars globally last year, the highest number in any country outside the company's native South Korea.
POLICY, INFRASTRUCTURE HURDLES
But India's infrastructure development has not kept pace with the demands of its manufacturing. Power is in short supply, highways are clogged with traffic and ports are too crowded.
The average cost to move a container within India is $945, more than double the $460 it costs in China. Due to restrictions on goods traffic, Hyundai can only ship cars from its Chennai plant to the coast for seven hours at night, said Arvind Saxena, a director of Hyundai Motor India.
"Infrastructure has improved ... but yes, a lot still needs to be done," he said.
LG's Verma would like to see the government adopt China-style policies to foster growth of Indian suppliers.
"The Chinese government has spent a huge lot of money, creating cities where the vendors will be placed, creating infrastructure there," he said. "Those things are not in focus in India."
Companies have also grappled with slow or inconsistent policy decisions from the Indian government. For example, five years ago New Delhi rolled out a policy for so-called Special Economic Zones (SEZs), hubs with long tax holidays that were set up in Beijing's footsteps to spur manufacturing growth.
But the finance ministry slapped a 18.5 percent duty on book profits in the zones in February's budget, sparking criticism from the trade ministry that the tax would send the wrong signal about India's credibility with investors.
Karl Slym, the head of GM India, cheers what he sees as largely business-friendly policies from the government for auto makers. But some decisions from New Delhi come out of the blue and catch investors unawares, he said.
"Nobody has the chance to be able to respond correctly or be able to manage the situation," Slym told Reuters.
"If you know what the outlook is, what the playing field is, then you can plan accordingly for that. But if you start out playing football on a football field and then all of a sudden you're trying to play on a cricket field then you've got the wrong equipment to be able to perform the best," he added.
Whatever its problems, the four companies interviewed by Reuters remain largely optimistic on India's manufacturing rise. And as global firms look to ride India's 9 percent growth story, Asia's third-largest economy has also flexed its export muscle with the growth of domestic brands.
The trade ministry has set India a target to double its exports by 2014 to help keep the deficit in check. No longer known just for its iconic exports such as textiles and gems, India's manufacturers are becoming household names in sectors such as cars, generic medicines and oil products.
Reliance Industries, owned by tycoon Mukesh Ambani, operates the world's biggest oil refining complex. India's Tata Group is Britain's biggest manufacturing employer.
"The overall long term growth for the country, the capabilities within the country, far outweigh any short-term issues," GM's Slym said. "They're just hindrances."
May 17th, 2011, 08:00 AM
Plan Panel for 30% domestic quota in government buying of electronic equipment (http://www.business-standard.com/india/news/plan-panle-for-30-domestic-quota-in-government-buyingelectronic-equipment/435589/)
Fearing that import of electronic equipment is expanding too rapidly, the Planning Commission has recommended that 30 per cent of government procurement of electronic hardware be reserved for domestic manufacturing.
The Commission felt the country's manufacturing capacities for electronic hardware was woefully behind the demand and would not expand unless a big push was given. By its estimates, the country's capacity of electronic manufactured goods was $20 billion in 2009, whereas the demand was $45 billion.
"If we do not give a big push to electronic hardware equipment manufacturing, we will not be able to convert ourselves into a hi-tech manufacturing economy," minister of state for planning Ashwini Kumar told Business Standard.
The Commission has proposed that 30 per cent preferential access or reservation be given to domestic manufacturing in government procurement, he said. If the country's capacity of manufacturing electronic hardware continues at the current rate and the demand also grows at the present pace, the latter would expand to $400 billion annually and the capacity to $106 billion by 2030, he said.
"It is possible that by 2030, our import bill for electronic equipment will out pace the petroleum, oil and lubricants (PoL) segment," Kumar said. During 2010-11, India's import bill of PoL was $101.7 billion , while that of electronic equipment was $36.8 billion.
The Commission has also suggested the Cabinet to set up two plants to manufacture semi-conductor wafers, with a total investment of Rs 7,500 crore, to boost the country's electronic hardware production.
"We have recommended to the Cabinet for establishment of two large wafer and semi-conductor facilities costing Rs 5,000 crore and Rs 2,500 crore," he said. He said locations for the plants were yet to be identified.
The Commission is likely to focus on 11-12 per cent annual growth in the manufacturing sector to grow employment by two million jobs in a year in the 12th Five Year Plan, which will start from April next year.
It has suggested establishing manufacturing regions across the dedicated rail freight corridor to give a big push to industrialisation.
Overall, the Commission aims to peg economic growth at 9-9.5 per cent a year on an average in the five-year period beginning 2012-13.
May 30th, 2011, 03:09 PM
Govt. panel to approach chipmakers directly to set up fab facilities
An empowered committee formed by the government to set up semiconductor wafer fabrication manufacturing facilities in the country will hold direct talks with global chipmakers.
“The committee had its first meeting and discussed number of issues that will count in setting up wafer fabrication plant. We want interested companies to directly approach us,” the chairman of the committee, Sam Pitroda, told PTI.
Mr. Pitroda said that he is in touch with semiconductor association but will talk to the players directly.
“We need to talk to principals who can invest in setting up facility... We will talk to them one-by-one in next few months,” he said.
Semiconductor wafer fabrication plants are used for manufacturing electronic chips that are used in electronic devices and act like heart of a device.
Mr. Pitroda mentioned that the committee will first focus on attracting investment in commercial market of semiconductor.
“We have to see that a wafer fab is viable in India. India is a huge market. Our need of electronics is growing day-by-day but we are importing most of the products,” Mr. Pitroda said.
On semiconductor wafer fabrication for strategic sector like defence, he said, “It will come later.”
Mr. Pitroda mentioned that the government has clear focus to boost local manufacturing in the country and semi-conductor forms an important form of whole eco-system.
“Around 30 to 40 per cent bill of material in a (electronic) product is for semiconductors. We have talent in India who design semiconductor but they are doing it for someone else’s product,” Mr. Pitroda said.
He added that cell phone and PC market in India is growing and hence the need for having local manufacturing of semiconductor is unavoidable.
“We need to reduce our import bill,” Mr. Pitroda said.
In mid-April, the Cabinet approved setting up high-powered committee to set up two semiconductor wafer fabrication plant in the country with investment of Rs. 25,000 crore (about $5 billion).
Estimates show that India’s demand for electronics products (including telecom) will be $400 billion by 2020.
Meanwhile, at the existing rate of growth, the production of electronics hardware is likely to grow to $104 billion by 2020, creating a demand and supply gap of $296 billion, which would have to be met through imports.
June 3rd, 2011, 10:10 PM
India looking at opening more nano manufacturing tech centres
India is looking at setting up more nano manufacturing technology centres as it seeks to give enhanced thrust to value-added output, Commerce and Industry Minister Anand Sharma said today.
He was speaking after laying the foundation stone for an advanced nano technology laboratory, as a part of the nano manufacturing technology centre being established at a cost of Rs 120 crore, at the Central Manufacturing Technology Institute (CMTI) here.
Asked if the government planned to set up more such centres, Sharma told reporters “There will be. I am sure that we will be looking at augmenting because India needs more technology centres.”
He also said “It is required in our country to give more thrust to value-added manufacturing which, as of now, is on the lower side compared to other developed economies or emerging economies.”
The government was very keen that India, through collaboration and on its own efforts, was in a position to manufacture green technologies, Sharma said, adding that the country can become a workshop of the world given its institutional strength and human resources.
The Minister also laid the foundation stone for the Academy of Excellence for Advanced Manufacturing Technology at CMTI, a human resources initiative to produce qualified “job-ready” engineers in advanced manufacturing technologies.
A Rs 10 crore advanced machine tool testing facility was also inaugurated at CMTI, an autonomous body which carries out applied R & D and pre-competitive R & D in manufacturing technology.
June 11th, 2011, 07:28 PM
'Manufacturing Policy aims at more GDP contribution
HYDERABAD: Commerce and Industry Minister Anand Sharma on Saturday said the proposed 'National Manufacturing Policy' aims at increasing contribution of manufacturing to the national GDP from current 16 per cent to 25-26 per cent by 2025 and of creating 100 million jobs in the next decade.
Sharma said that a high-level meeting comprising of prime minister, finance minister and other cabinet ministers, was held two days ago in Delhi on the new policy.
"The day before the prime minister chaired a high-level meeting in which finance minister, I, minister for corporate affairs and other ministers and all the key secretaries of government of India were present.
The aim is to take our manufacturing from the present 16 per cent share in the GDP to 25-26 per cent in a decade's time and to generate 100 million jobs (in next decade) and 200 million jobs by 2025," Sharma told media persons here.
He said the government was mulling to create industrial corridors in southern parts of the country on the similar lines of the Delhi-Mumbai industrial corridor.
Replying to question on allowing rice exports, the minster said the government was aware of the position of food grains stock in the country which is at comfortable levels.
He, however, said the Group of Ministers (GoM) will meet soon to take the stock of the situation.
"We are close to double what we are required to keep (food grains). But we are working on Food Security Act. Therefore, adequate amounts have to be kept once that food commitment to the nation happens.
Some extent of exports have been allowed. And the situation is carefully monitored," he said.
June 12th, 2011, 08:29 PM
Maxx Mobile to invest Rs 320 cr to set up manufacturing plant (http://www.business-standard.com/india/news/maxx-mobile-to-invest-rs-320-cr-to-setmanufacturing-plant/138127/on)
Home grown company Maxx Mobile has plans to invest approximately Rs 320 crore to set up a handset and lithium ion battery manufacturing plant in India.
"We have a vision of being a true Indian mobile handset company. Hence, we have decided to set up a mobile handset manufacturing plant at Haridwar in India. At this plant, we will also have a unit to make lithium ion batteries," Maxx Mobile Communications Managing Director Ajjay Agarwal said.
The company sees advantages in manufacturing mobile handset in India, rather than importing them from China.
"India has a large base of cost-effective labour. Labour costs in China are increasing and this is where India has a distinct advantage," Aggarwal said.
Talking about the cost of labour, he said that an average skilled labourer in China costs Rs 15,000 per month, while in India, the monthly wage for an equally skilled labour is Rs 8,000.
Aggarwal added that the company's Haridwar plant falls in a tax-free zone, where it will receive tax exemption till 2020 under the current provisions.
"Overall, we have 10 to 15% savings from manufacturing in India compared to buying from China," he said.
Maxx Mobile will set up a mobile phone production facility in the next six months and the lithium ion battery plan will be established in the next 12 to 18 months' time.
"We have earmarked an investment of Rs 320 crore on these new projects," Aggarwal said.
The planned mobile phone manufacturing facility will have the capacity to produce 3.6 million handsets annually and the lithium ion plant will have a production capacity of 30 million units annually, he elaborated.
The company has a target for achieving a Rs 2,500 crore revenue in the next two years by expanding business, which was close to Rs 1,450 crore in the previous financial year.
"With growth in business, we also see need of increasing headcount from 2,500 to 16,000 by the end of 2012," Aggarwal added.
Maxx already has three manufacturing units in India, two at Haridwar and one Mumbai, for making mobile phone batteries and chargers.
The company says it has invested Rs 350 crore on the Haridwar facility.
Aggarwal said that Maxx Mobile will be the first homegrown handset company in India to have complete indigenous manufacturing facilities for its mobile phones.
June 23rd, 2011, 03:43 PM
Govt. issues EoI for Semiconductor fabrication plant
June 23rd, 2011, 07:17 PM
India, US to fast track negotiations on bilateral investments
New Delhi: India and the United States have agreed to ”fast-track” technical negotiations needed for an early conclusion of the bilateral investment agreement the two are negotiating, a commerce ministry statement said Thursday.
Commerce Minister Anand Sharma, who is on a four-day visit to the US, met Trade Representative Ron Kirk in Washington on Tuesday when they also decided to ”re-invigorate the Trade Policy Forum to make give it more teeth to resolve bilateral commercial issues.
”There would be two rounds of negotiations before the next meeting of the Ministerial level TPF expected to be held in October 2011 in India,” the statement said. Sharma discussed with Kirk steps taken by the government to sustain India’s economic growth and the opportunities it offered for the U.S. businesses.
Infrastructure, agriculture and agro-processing; food processing; cold chain logistics; manufacturing of electronic devices including chip design were identified as areas with bilateral cooperative possibilities. The US welcomed steps by India to reduce tariffs on a number of manufactured or imported products. The US is one of India’s top trading partners.
In my opinion, US is getting paranoid about China, if we start manufacturing silicon chips then not many would prefer chinese manufacturing, it's time we put 'made in India' on the gadgets.
June 24th, 2011, 05:32 PM
In 2007 Intel had approached Indian govt to start à manufacturing plant for chips but Indian govt did not agree with Some of their requirements so they went to China
June 26th, 2011, 05:54 PM
In 2007 Intel had approached Indian govt to start à manufacturing plant for chips but Indian govt did not agree with Some of their requirements so they went to China
They demanded high amount of water supply for the plant. No state could promise that.
June 26th, 2011, 09:22 PM
Yes something like that.
July 1st, 2011, 10:11 PM
Potential of NewManufacturing Policy
Even in advanced countries there has been economic progress coupled with inclusive growth on the back of carefully crafted tax incentives
The Centre's resolve to roll out a New Manufacturing Policy (NMP) has been welcomed in knowledgeable quarters but frankly nobody seems to have a clue about its contours much less about its minutiae. One hopes it is something ground-breaking. There is a feeling the NMP has been triggered by the Chinese manufacturing success story. China used its formidable manufacturing prowess to not only become the world's manufacturing hub but also to provide employment to its teeming masses. India perhaps rightly apprehends that the much talked about demographic dividend might well turn out to be a curse if the growing unemployment problem is not addressed. And like China, it wants to use manufacturing to catapult its youth to financial empowerment. Laudable thinking indeed.
The NMP would be path-breaking if it gives impetus for the following:
Corporate farming must be dovetailed with the food processing industry. This could have several spin offs. Rural and disguised unemployment would be meaningfully addressed and this would be feat given the growing rural disenchantment with the nation's fixation with urbanisation. Corporate farming may be encouraged specially for those companies committed to setting up food processing industries thus contributing at once to the minimisation of monumental waste and decay of agricultural produce and tackling rural unemployment.
The Direct Taxes Code Bill, 2010 (the DTC) needs to be in step with the NMP and further its cause. Corporates entering farming and carrying on food processing must be given tax sops. Economists often cavil at tax sops but there is no gainsaying the fact that even in advanced countries there has been economic progress coupled with inclusive growth on the back of carefully crafted tax incentives.
Small and medium enterprises (SMEs) should be encouraged to function as a foil for the growth of manufacturing. Anciliarisation has often been the key to the growth and success of large enterprises. It can in addition provide self-employment to those looking for jobs as well as to those raring to go it alone.
The NMP can also be used to douse fires of discontent engendering violence and terrorism. It is common knowledge that frustrated youth often take to violence. Their energies can be sublimated for growth of the nation as well as for keeping the youth honourably employed. The naxal violence that has been rocking the nation can be contained through agrarian reforms and financial empowerment of the youth.
On agricultural policy, we need to pull out agriculture from the morass it finds itself in. Our food production tends to be extremely volatile with surplus and deficiency alternating. There is always a knee-jerk reaction to agriculture and food products in policy circles. Therefore, it is tad curious that the government initiating NMP has not thought it appropriate to unveil an agricultural policy.
The food inflation refuses to abate and the reason is not excessive money sloshing around as the RBI seems to believe. The supply side constraints need to be eased for which multi-pronged but holistic strategies need to be put in place that encompass land use, irrigation, rural electrification, cold storage and retailing. We need to have a holistic and integrated approach to agriculture and food production rather than viewing the various facets of them separately through narrow prisms. More ideally, agricultural policy should be dovetailed with the NMP so that agriculture and manufacturing reinforce each other.
August 12th, 2011, 06:33 AM
India plans to boost manufacturing capacity in telecom networks, IT hardware to compete with China
12 AUG, 2011, 01.53AM IST, JOJI THOMAS PHILIP & HARSIMRAN JULKA,ET BUREAU
NEW DELHI: India plans to undertake a five-pronged strategy to boost its manufacturing capabilities in telecom networks, IT hardware and electronics, and compete directly with China in this space. The telecom and IT departments share the view that major policy changes to kick-start large scale manufacturing in the country can create as many as 100 million jobs - directly and indirectly - by 2025.
As the first step, the Centre had invited expressions of interest from both technology companies and investors for setting up two semiconductor fabricators in the country, while also outlining a full package of incentives.
As per a confidential note circulated by the DoT, the Union Cabinet is also deliberating four other policy initiatives. These include incentives to companies to set up electronics clusters in towns, forcing all government departments to procure domestically manufactured products with regard to telecom, IT hardware and electronics, setting up an electronics development fund and a National Electronics Mission and also limiting telecom networks import to 20% of the industry's total requirement over an eight-year period.
Security concerns are also behind the move to boost domestic manufacturing, especially of telecom networks. The DoT internal note, reviewed by ET, points out that the Intelligence Bureau had approached the cabinet secretary seeking that the country reduce its dependence on foreign vendors, enhance indigenous interception and monitoring capabilities and develop technologies locally.
The draft Cabinet note mandating that 30% value terms for all government procurement should be 'Made in India' or Indian electronic products, has also been circulated to all ministries.
This plan, which has the support of the National Manufacturing Competitiveness Commission and the Prime Minister's Office, will extend to tenders of all government ministries, PSUs, government controlled institutions, PPP-funded projects and projects under institutional funding from World Bank and Asian Development Bank, according to the draft proposal.
The DoT's internal note also adds that the draft Cabinet notes for setting up a national electronics mission and the introduction of special incentives for setting up electronic manufacturing clusters, were already under inter-ministerial consultation. The ministry is also finalising the detailed project report for setting up a dedicated 'Electronic Development fund'.
Additionally, the upcoming new telecom policy will also incorporate sector regulator Trai's recommendations that mobile phone companies be mandated to source 80% of their network equipment and other related infrastructure from domestic manufacturers by 2020. This also includes the networks produced by the manufacturing units of foreign vendors located in India.
Trai had proposed that government to ensure that companies owned by Indians and located here get 50% of all telecom network orders by 2020.
This implies that the regulator wants the manufacturing arms of international vendors such as Ericsson, Nokia Siemens, Alcatel-Lucent and Huawei amongst others to account for only 30% of all equipment orders by 2020. Besides, Trai also wants telecom hardware imports to be restricted to 20% of the country's total requirements. It had also charted out a timeline beginning 2015 to achieve these targets.
August 12th, 2011, 08:40 AM
Panasonic India's Jhajjar unit to be operational by Nov 2012 (http://articles.economictimes.indiatimes.com/2011-07-31/news/29835736_1_air-conditioners-conditioners-machines)
Panasonic India's manufacturing facility at Jhajjar in Haryana - Panasonic Techno Park - will become operational by November 2012, bringing out washing machines, air-conditioners and welding equipment.
The company, a 100 per cent subsidiary of Japan headquartered electronics giant Panasonic Corporation, would invest USD 200 million over a five year period at the facility in the first phase, Panasonic India President Daizo Ito said here.
"Construction commenced in April (this year) and is expected to be completed by April 2012. It will be used to manufacture air-conditioners, washing machines, welding and cutting machines after March 2012. It is currently under process to be operational in November 2012," Ito said.
He said the products would largely cater to the domestic market and provide employment to 3,500 people.
Once operational, the plant would have the capacity to produce 10 lakh air-conditioners, four lakh washing machines and 25,000 units of welding machines each year.
With this new facility, the company also announced its foray into the welding equipment business, which was being imported from Japan and China since 1988.
"We will manufacture welding equipment in the Jhajjar factory. We will appoint dealers for distribution and marketing," Panasonic Welding Systems President Koichiro Masai said.
The company would appoint nationwide dealers for distributing welding equipment, including cutting machines, he said. "Currently, Panasonic holds about 10 per cent market share in this business, we want to reach 30 per cent in the next two years," he said.
He said the company, as a group aims to garner Rs 5,500 crore revenue this fiscal compared to Rs 3,200 crore last year.
August 12th, 2011, 01:27 PM
India plans to boost manufacturing capacity in telecom networks, IT hardware to compete with China
Awesome news!! Nice find ericos!
August 12th, 2011, 02:02 PM
Awesome news!! Nice find ericos!
Will Chennai be a significant component in this scheme ?
August 12th, 2011, 02:04 PM
Will Chennai be a significant component in this scheme ?
Neenga dan sollanum!!
August 12th, 2011, 03:05 PM
^^Government plans a National Manufacturing policy, envisioning huge manufacturing zones on the lines built by China. It plans to generate 100mn jobs by 2025. I think every city will have a fair chance in it.
August 27th, 2011, 10:18 AM
Polaris enters into India, plans to set up assembly site
NEW DELHI: US-based off-road vehicle-maker Polaris Industries on Wednesday forayed into the Indian market with plans to set up an assembly facility within the next five years as it looks to clock revenues of up to USD 400 million from the country by then.
The company, which has started its operations in the country through a wholly-owned subsidiary, is looking to set up a research and development centre and introduce its high-end motorcycles in India in the next 3-5 years.
Polaris Industries had earlier appointed former India Yamaha National Business Head Pankaj Dubey as the Managing Director of Polaris India Pvt Ltd.
August 29th, 2011, 07:58 PM
Amway to open another manufacturing facility in India (http://news.in.msn.com/business/article.aspx?cp-documentid=5118353)
Targeting an annual turnover of Rs 2,500 crore by 2012, Amway India today said it would set up another manufacturing facility in the country.
"Amway India recorded a sales turnover of Rs 1,790 crore in 2010 growing at 27 per cent over the previous fiscal.This is the third successive year that we have registered growth upward of 25 per cent," Amway India''s MD & CEO William S Pinckney said here after inaugurating the company''s first health and beauty experience centre in the state.
"The state of art Brand Experience Centre is a unique initiative in Orissa in the field of nutrition, wellness and beauty that enhances brand visibility and awareness," he said.
Amway has invested Rs 151 crore in the country, including Rs 26 crore as the direct foreign investment, Pinckney said, adding that the company has 450 full time employees and generates indirect employment for 1,650 persons.
Asked about the amount of investment and location of its proposed new manufacturing facility, Pinckney said, "we are yet to decide on the size of the investment and location."
Amway India''s presence in Orissa was through four touch points - Bhubaneswar, Balasore, Sambalpur and Jeypore and through warehouses at Bhubaneswar, Rayagada, Sambalpur and Balasore.
The state posted sales of Rs 32.6 crore in 2010 up from Rs 23.8 crore in 2009. "The company has paid a tax of Rs 4.45 crore to the state Exchequer in 2010-11 fiscal," he said.
PTI AAM SUS
September 2nd, 2011, 12:26 PM
National Manufacturing Policy likely by Sep end
New Delhi: The government, on Friday, said it is likely to come out with a National Manufacturing Policy by the end of this month, which aims to create mega industrial zones across the country with world-class infrastructure facilities.
“The note (for the policy) will go to the Cabinet within a week. I do not foresee any delay. Hopefully within this month, it will become a reality,” Commerce and Industry minister Anand Sharma told reporters here at a Confederation of Indian Industry (CII) function.
The policy aims to create 100 million additional jobs and take the share of manufacturing to 25% of the country’s gross domestic product (GDP) by 2020 from the current 15-16%. The sector contributes over 80% to the country’s overall industrial production.
The policy has also proposed to relax labor and environment laws and sought tax sops for the proposed National Manufacturing Investment Zones (NMIZs). These planned big enclaves could even subsume special economic zones (SEZ).
“We propose to establish 4-5 NMIZs as greenfield integrated industrial townships with world-class infrastructure financed by the central government in partnership with respective state governments with a competitive regulatory environment for attractive investments,” he said.
On the ambitious $90 billion Delhi-Mumbai Industrial Corridor (DMIC), Sharma said that seven new investment regions would be set up across the six states of the country under the project. “We have now completed the perspective planning of the entire DMIC region and I have moved the Cabinet for seeking support of Rs. 18,500 crore for establishment of
seven new investment regions across the six states of the country,” he added.
These two steps would help unlock the true potential of manufacturing in India, the minister said.
He also said the first meeting of a Joint Task Force of the government and industry will take place on 12 September. The Joint Task Force was announced after the minister held consultations with CII on 13 July.
On increasing the cost of credit for exporters, he said both the Finance Minister Pranab Mukherjee and he were sensitive to the issue. “The government agrees in-principle to the need for differential interest rates for keeping them globally competitive,” he added.
September 13th, 2011, 05:20 PM
11 cos keen to set up semiconductor plant in India
In a push to India's dream to emerge as global manufacturing hub for meeting domestic demand for electronics and other technology devices, 11 companies, both foreign and local, have evinced interest to set up semiconductor wafer fabrication plant.
"Department of Information Technology (DIT) has received proposals from 11 companies to set up wafer fabrication plant in India. There are couple of domestic firms and other are foreign firms," PS Narotra, senior director and head, International Cooperation and Electronics Hardware Industry, DIT, told reporters on sidelines of 'Electronica India 2011'.
Narotra added that some of the firms were serious pursuing and were seeking additional information about the policy.Electronic chips are key components of all electronic devices like mobile phone, computer, television and others. These chips govern functions of device.
India had been eagerly looking for interest of semiconductor companies to set up an electronic chip making plant here. The Ministry for Communications and IT also announced a special incentive plan, Semiconductor Policy 2007, to attract investment in the field.
The policy did receive investment for solar plants, but failed to get interest from chip-making firm which was largely attributed to the global economic crisis.
Global chip making firms like Intel, ST Microelectronics, Infineon Technology and other didn't see favourable condition to set-up their plants in India.
It is estimated that setting up electronic chip making plant involves investment of over $2 billion and a plant can suffice need of billions of devices.
In April, Indian government agreed to provide support of up to Rs 25,000 crore for setting up of two wafer fabrication plant in the country. The government has also formed an empowered committee to negotiate with players and facilitate their investment by providing them favourable conditions.
Estimates show that India's demand for electronics products (including telecom) will be $400 billion by 2020.
If the initiatives are not taken to boost local manufacturing of electronics , the production of electronics hardware is likely to grow to $104 billion by 2020 at the existing rate of growth, creating a demand and supply gap of $296 billion, which would have to be met through imports.
The three-day fair, Electronica India 2011, that started here today is hosting over 900 exhibitors with country pavilions from China, Japan, Spain, Italy, Germany, Hong Kong, Korea, Singapore and Taiwan.
September 22nd, 2011, 11:11 AM
Warren Buffet’s firm to set up US $ 245 million JV plant in Gujarat
Mr. Tom Frubus, head of America’s famous company Lubrizol corporation and Shri Sandip Engineer, Managing Director of Astral Polytechnic today called on Gujarat Chief Minister Shri Narendra Modi and briefed him about their plan to set up Lurbizol-Astral CPVC industrial project JV in central Gujarat’s Bharuch district based Dahej GIDC.
A decision to set up this plant with investment of US$ 245 million has been taken after Mr. Warren Buffet took charge of Lubrizol corporation, said Mr. Tom Frubus.
Construction of proposed industrial unit will begin in January 2013 while production will start in October 2014.
Thanks to Dahej port, CPVC products are in great demand not only in India, but also in south east Asia, middle east and African countries.
Principal Secretary of Industry department Mr. Maheshwar Sahu was also present in this meeting.
September 30th, 2011, 10:23 PM
Production stabilisation at world's largest kiln at ACC's plant in Wadi.
ACC, part of the Switzerland-based Holcim Group, has achieved production stabilisation at the world's largest kiln at its Wadi plant, nearly five months after it was commissioned.
The world's second largest kiln with a capacity of 11,500 tonnes is located at Holcim Group's cement plant in St Genevieve in the US.
The Wadi kiln with a capacity of 12,500 tonnes a day will produce clinker for its two satellite grinding units at Thondebhavi, near Bangaluru, and Kudithini, near Bellary. The 1.6-million-tonne-per-annum (mtpa) grinding unit at Thondebhavi will produce fly ash-based Portland Pozzolana cement while the Kudithini plant will use the slag generated primarily by JSW Steel for producing 1.1 mtpa Portland slag cement.
The company has made a total investment of Rs 1,634 crore in the three projects. With the completion of expansion at Wadi and Chanda in Maharashtra, ACC's annual production capacity has increased by 25 per cent to 30 million tonnes (mt) from 24 mt logged last year. The company recently installed a new 7,000-tonne-a-day clinkering line in Chanda.
Mr Anoop Saxena, President, ACC, Wadi Cluster, said the Wadi plant, which is the largest ACC units, will contribute about Rs 10,000 crore over the next 20 years to the Karnataka exchequer by way of taxes and levies.
“The Wadi kiln has already exceeded its rated capacity to produce 13,189 tonnes of clinker on February 8 and further bettered its own record by registering an output of 13,300 tonnes on June 30,” he added.
ACC has filed for registering the 182-m tall preheat tower at the Wadi plant in the Guinness Book of World Record. Besides, the rotary kiln of 6 m in diameter and 96 m in length is the largest-moving machine on the earth, said Mr Saxena.
“All operations at Wadi are mammoth in scale and setting new trends and benchmarks. It has the largest limestone-mining operation, the largest captive power plant of 125 MW by a cement company, highest inward and outbound logistics and largest bulk-cement operations,” he said.
ACC first set up a cement plant at Wadi in 1968 and introduced energy-efficient pre-calcinator technology from Mitsubishi in 1978 in India. It increased the production capacity at Wadi to one mtpa in 1982 and has enhanced it to produce five mtpa of cement currently. The plant employs 1,400 people and accounts for 29 per cent of ACC's production.
October 25th, 2011, 07:23 PM
Happy Diwali Guys!! :cheers:
Govt clears manufacturing policy
Sops for SMEs; job loss policy to protect workers
The much-awaited National Manufacturing Policy was approved on Tuesday by the Union Cabinet. It comes at a time when the country is facing a slowdown in manufacturing and industrial growth.
The policy aims to create 100 million jobs within a decade and increase the share of manufacturing in the country's GDP to 25 per cent by 2022 from the current 15-16 per cent (a level that has been stagnant since 1980).
Among the key instruments for realising these goals is the setting up of National Investment and Manufacturing Zones (NIMZ). The minimum land area of each NIMZ – or greenfield integrated industrial townships with the modern infrastructure – is to be 5,000 hectares.
Announcing the policy, the Commerce, Industry and Textiles Minister, Mr Anand Sharma, told reporters that, “No cultivable, agricultural and forest land will be allowed to be acquired for NIMZs.”
The first phase of the NIMZ will be established along the Delhi Mumbai Industrial Corridor which will see early results in the next few years, he added.
The policy also has a host of fiscal incentives mainly for the micro, small and medium enterprises.
In this regard, an official statement said, “Individuals will be eligible for relief on long-term capital gains tax if the sale proceeds of a residential property are reinvested in equity of a new start-up company,” adding that tax pass through status for venture capital fund will be available if they focus on manufacturing.
The other significant features are the single window clearance mechanism to cut red-tape and the high-priority for skill development. “Private sector will be given standard deduction of 150 per cent of expenditure for skill development institutes,” the statement said.
The policy was finalised after over 20 months of intense stakeholder consultations. These discussions had seen difference of opinion, notably from the Ministries of Environment and Labour.
With a view to protect the interests of labour in cases of closure of units, the policy has a mechanism of fund to insure the workers against such loss. The policy also features third party inspections in addition to inspections by Government agencies for compliance of both environment and labour norms.
The focus will also be on ‘green manufacturing'. In this regard, a Technology Acquisition Fund will be set up to acquire global technologies and build a patent pool especially for equipment manufacturing that seeks to reduce energy consumption.
SMEs will be given access to this patent pool up to a maximum of Rs 20 lakhs for acquiring patented technologies, the statement said.
The policy statement says that support will be given to employment-intensive industries to ensure job creation, adding that, “Special attention will be given to textiles and garments; leather and footwear; gems and jewellery; and food processing industries.”
October 25th, 2011, 09:55 PM
^^ Some similar news
India cabinet approves manufacturing push
India's cabinet has approved a major new policy to develop national manufacturing.
The policy aims to create a 100 million jobs in the next 10 years and allows for a series of special new zones to support manufacturing growth.
At the moment, that sector only accounts for about 16% of the country's gross domestic product.
That has barely changed in the last three decades and is seen as well below India's potential.
It is also far lower than other Asian countries at a similar level of development.
India has done an impressive job in developing hi-tech and service sector industries - which have given new opportunities to its well-educated middle class.
But that is little comfort to a growing number of rural unemployed who have at best a basic education and few opportunities for work beyond agriculture.
Now India is trying to learn from China - with an ambitious plan which aims to boost manufacturing and deliver factory jobs.
Cutting red tape
The target is for manufacturing to account for a quarter of GDP by 2022 - creating 100 million new jobs.
The government also plans to train the young rural generation so they can take advantage of these jobs.
Special economic zones will be set up - again, following China's model. Seven sites have already been identified.
Their development will be led by the private sector. They are described as self-governing townships.
Companies using the sites will be offered tax incentives.
One of the obstacles for manufacturers in the past has been endless government bureaucracy and red tape. This too will be streamlined.
There is no doubt that India desperately needs a more vibrant manufacturing sector to even out its growth and absorb future workers.
The test will be how successfully this plan translates from paper to the real world.
October 28th, 2011, 05:06 PM
I have two questions:
1) How is NIMZ different from SEZ?
2) If NIMZ cannot be built on agri, forest and farmland - I'm guessing the only logic choices would be barren, wastelands or deserts. the question here is - these places in India are considered as remote, backwards in both logistics and infrastructure and many times plagued with law and order issues like naxals, PWG etc.
Proximity to ports, airports and railway infrastructure and not to mention power and water connectivity is what drive investment into manfucaturing and economic zones.
How would NIMZ get over these huge obstacles and not repeat the SEZ fiascos in the first place?
October 28th, 2011, 05:30 PM
Ultimately these also will come up near Delhi,Mumbai and other metros.
October 28th, 2011, 07:41 PM
‘Manufacturing policy is a game changer’
Commerce, industry and textiles minister Anand Sharma is elated that the National Manufacturing Policy has finally been approved. He is pinning a lot of hope on the policy to ensure that the share of manufacturing in GDP increases and it aims to create millions of jobs in the next decade. Excerpts:
The policy has taken 22 months and a lot of convincing by you and now you have a watered down version of the original plan.
It's not a watered down version. The level of ambition has to be high to begin with. I shouldn't be saying this but it's a game changer. We have got a very robust policy framework that will be attractive to investors. We have to bear the larger objective in mind. The share of manufacturing in India has been stagnating, which is much higher in other countries such as China, South Korea, Thailand, Malaysia and Indonesia, where it is 25%-34%. So, the first objective is to increase the share of manufacturing in overall economy to at least 25% by 2022. There is a social dimension too, which is to create 100 million jobs. In a country of 1.2 billion people, manufacturing is the only sector that can create so much employment. The idea is to make Indian manufacturing globally competitive. The National Investment and Manufacturing Zones (NIMZ) that are planned are not just zones but standalone, integrated industrial townships that will be autonomous and self governing under Article 243Q-C of the Constitution.
What has changed between what you had proposed and what was cleared today?
It is a major leap towards self regulation. We are sending a message that the country is ready for faster clearances by putting in a single window mechanism in NIMZs. The SPV will be dong the master plan, zoning will be by the states since land is a state subject. In case of labour, the powers will be delegated to the CEO of SPVs, who will be a senior government official, in concurrence with the states. Only thing that has changed is self regulation for environmental issues. Now, the power will be delegated to an officer of the State Pollution Control Board, who will be on deputation to the SPV.There is also a major thrust on training and skill development and SMEs and incentives have been offered. There will also be a Technology Acquisition Fund where up to Rs 20-25 lakh, every SME will be given technology. Then, there is exemption from capital gains tax that was so far available when you sell a house or land will be available in these zones.
Have you retained proposal on sinking fund and insurance for job losses?
Yes they are there in the form of an option. If I am a worker, I will choose the best dispensation that is available. There is also the option of redeployment within the NIMZ to minimise job losses but the sinking fund and insurance will make sure that the statutory dues are cleared and the SPV will ensure that the payouts are automatic.
What about labour law flexibility such as those for women working in shifts or on contract labour?
These will be decided by states. Many states such as Gujarat, Haryana, Tamil Nadu, Maharashtra and Andhra Pradesh are willing to offer flexibility.
Which states have come forward to set up NIMZs?
There are several such as Andhra Pradesh, Rajasthan and Maharashtra.
One of the big criticism of the SEZ policy was that these were near real estate ventures. What are you doing to ensure that the NIMZs do not meet the same fate?
That's only partially true. There are more than 500 SEZs, here you have only seven NIMZs. Second, these will be standalone cities that are not going to undertake manufacturing but will be mega industrial townships. After Independence only two planned cities came up - Jamshedpur and Chandigarh. More than Rs 5 lakh crore of our exports come from SEZs, millions are employed.
The Delhi-Mumbai industrial corridor is focusing on states that account for 45% of manufacturing. Will this not accentuate the regional imbalance?
I have already asked for a survey on a Southern corridor and then we may take up a corridor in the East.
You have got the manufacturing policy out of the way, there are several other issues pending such as FDI in defence and multi-brand retail. Will it be a Christmas gift?
We have taken a big step, it's best to take one step at a time. FDI in multi-brand retail is under active consideration. The recommendations of the committee of secretaries are on my table we will now undertake consultation with the Prime Minister,the finance minister and since it is also a political decision I will consult the UPA chairperson and the Congress president ( Sonia Gandhi) in the coming weeks.
October 28th, 2011, 07:46 PM
Anand Sharma | Green tech is focus for industrial townships
The units will also be provided single-window clearance. Second, the first seven regions have been identified under the DMIC (Delhi-Mumbai Industrial Corridor)
Commerce and industry minister Anand Sharma speaks about the national manufacturing policy cleared by the Union cabinet on Tuesday. The policy, which will promote the creation of large integrated industrial townships called National Investment and Manufacturing Zones (NIMZs), aims to boost the share of manufacturing in gross domestic product to 25% by 2022. Edited excerpts:
Industry is already finding it difficult to get land. How will you ensure finding 5,000 hectares of land for an NIMZ?
First of all, it is in partnership with the states. Land banks will be created by the states; zoning of the land will be done by the states. Those states which are ready and have land will ask for NIMZs. It is a policy framework which is applicable for the zones with certain benefits and incentives. The units will also be provided single-window clearance. Second, the first seven regions have been identified under the DMIC (Delhi-Mumbai Industrial Corridor). So that is not where they will start looking for land; land is already there. So we are not talking in abstract.
It is said that the tax incentives that will be provided for units within such industrial zones may lead to shifting of present industries from other areas into the zone, which would mean no additional employment generation.
I shall not comment or speculate. These will be stand-alone, integrated industrial townships. So look at the positives and let’s not speculate on the negatives.
So you will not allow shifting of present industries?
These will come up in partnership with states. We are a federal country. It is a matter of detail. We will leave it to states.
The policy says NIMZs will be sector-, location- and technology-neutral. What do you mean by that?
We are not going to specify which technology the industry needs. The emphasis is on green technology. Location-neutral means that if tomorrow Andhra Pradesh or Maharashtra is ready, we are not going to decide the location in the state (where the NIMZ will come up)...
How is the policy aiming to safeguard the interests of labour?
When it comes to closure of a unit, which leads to immediate job loss, then as per the present law, compensation for 15 days of each year spent in employment will be provided. Now, the new option under the new law is a better option; it makes it 20 days. It makes for the labour dues to be paid immediately. Because it is through the creation of a sinking fund, an insurance cover or a combination of both. So the funds will be with the special purpose vehicle (SPV). If the unit shuts down, the labour dues will be made available. Also, the SPV has been mandated for redeployment of labour within the zone. If one unit closes, there will be five others who can take them.
October 28th, 2011, 07:48 PM
National Manufacturing Policy gets thumbs up from CII
The cabinet has cleared the National Manufacturing Policy, which will facilitate the creation of mega industrial zones. The government has also proposed several fiscal incentives to boost the manufacturing sector. In an interview to CNBC-TV18, B Muthuraman, president of the Confederation of Indian Industry (CII) discussed the implications of the manufacturing policy.
Muthuraman indicated that the National Manufacturing Policy is a ‘great move' by the government. Moreover, he further stated that the special purpose vehicle structure for ownership of NIMZ a good move as well.
He pointed out that the labour flexibility is being worked into policy. “This policy has better compensation for workers than in other policies,” he added.
Here is the edited transcript of his interview. Also watch the accompanying video.
Q: The government has set out a very ambitious plan in terms of what it hopes to achieve through the National Manufacturing Policy. The manufacturing ratio to GDP should be increased to 25% over the next 10 years and the creation of a 100 million jobs. We are talking about acquiring 5,000 hectares, which the policy proposes should be done by the state government. How does this align with the Land Acquisition Policy? According to the commerce minster, the Land Acquisition Policy will have to provision for these national manufacturing zones (NIMZ)?
A: The Land Acquisition and Resettlement and Rehabilitation (LARR) is under discussion in the government, but I don't see any contradictions here. Large tracts of land cannot be acquired by the private sector as they have several thousand's of land owners.
It will be very difficult for any one private industry to acquire land that it acquires. It may not be contiguous. The basic idea of this nation investment and manufacturing zones is a great policy and is required at this time for the Indian industry, when manufacturing is going through lean phase.
Manufacturing needs to become at least 25%. In countries like Thailand, it is 40-45% and in China, it is about 34-35%. Manufacturing is fundamental to Indian economic growth.
Q: As far as special economic zones were concerned, the ambition or intention of the government as well as the private sector is very clear, but how practical is it? We weren't able to get land for special economic zones, how are we talking about 5,000 hectares as the minimum area required?
A: The national investment and manufacturing zones have actually better polices than the SEZs. They are far more progressive policies. The starting point is the acquisition of land.
There is no other way in a country like India where you require large tracts of land for industries to share logistic cost, share power cost, and roadways and railways.
We need to have large tracts of land and need to make a fresh attempt to ensure how we can get those 5,000 hectares of land. Any other country in the world has these large tracts of land. We have to find a way to get it.
Q: How will we be able to get it? The policy proposes that the ownership is kept with the state government. They have also proposed a special purpose vehicles structure, which could be a joint partnership with the private operator. It also says that the central government will be responsible for the infrastructure, etc in that sense. Is this a more practical way of approaching it?
A: It’s a very practical way of approaching, where the state government identifies the land, predominantly non-agricultural land, waste land, dry lands, at an appropriate locations.
Then, the Central government takes the ownership of providing the basic infrastructure, so that when the industries come in, they don’t have to spend much of time in creating infrastructure, but will pay for the infrastructure.
When the Central Government spends money to create the basic infrastructure, the industries will pay a proportionate cost when they come in. It’s a very good and well thought out idea to create a purpose vehicle.
From the CIIs side, we have been propagating the creation of land development corporations. It is a public-private partnership where you give the authority to the special purpose vehicle to develop the land to get all the clearances necessary to market their product.
Q: One of the other issues that were proposed to be simplified as part of these NIMZ or large manufacturing zones was labour flexibility. As far as the policy is concerned, the draft cabinet note suggests that you can protect the interest of labour and the eventually for closure for unit, and provide a suitable mechanism using innovative job loss policy or a sinking fund. They have also spoken about insurance as far as labour in concerned in case of a closure. There has been some degree of flexibility being worked in?
A: There is a degree of flexibility. This is just a beginning of it. You can benchmark your labour practices with a global benchmarks.
If an industry falls sick or cannot do well and genuinely needs a closure, we have to ensure that the interest of the workers is protected. The compensation to workers is better than what it was in the earlier policies. This is an extremely positive step.
Industry must have the flexibility to grow or exit or close, depending on the market conditions, but simultaneously making sure that the workers don’t suffer. The idea is to create some new job policies or creation of a sinking fund from where the workers can be paid off.
Q: The policy proposes several things. It says a venture capital fund will be granted a tax pass through status with the focus on SMEs in the manufacturing sector. They have spoken about a separate fund being created under SIDBI. They had also spoken about rollover relief from long-term capital gains tax on the sale of residential property by a small and medium enterprises or an individual if he wants to get into the manufacturing space. Is this enough? How much of this needs to come through by way of changes in the budget for this to be a reality?
A: There will be a second and third step in this whole mechanism. If an individual or company has an idle real estate and is not earning anything for the industry or country, he/she can sell it off and not have capital gains tax. Therefore, he/she will have an incentive to put it into the national investment and manufacturing zones to create manufacturing capacity.
Some of these things need to become laws in various places. This is the next step that we need to go through in order to make sure that this policy is effective.
This policy is a policy in principle. There are number of measures subsequently that needs to be done. Fundamentally, this is an outstanding policy for the country. We have not had this policy for many years in this country.
October 30th, 2011, 11:54 PM
manufacturing policy is indeed a game changer!
November 1st, 2011, 11:32 AM
^^ Yes, especially the part dealing with skill development is extremely good. The private sector is encouraged to setup ITIs for their own training purposes. They are also allowed to use existing ITI/ITC infrastructure owned by the Govt. for evening courses.
November 1st, 2011, 03:37 PM
personally i doubt manufacturing policy is a game changer.
would prefer it if they changed
(a) employment laws
(b) improve the power situation in the countries so that factories can be set up in rural areas.
November 1st, 2011, 07:17 PM
^^ power situation can only improve when the politics will take a back seat and all the subsidizes are abolished, which will not happen till at least 2014.
November 1st, 2011, 08:57 PM
India PMI picks up, EU crawls
Private sector manufacturing picked up in India in October even as the European and other major economies struggled. The widely tracked HSBC purchasing managers’ index (PMI) for manufacturing in India grew to 52 points in October, from September’s 30-month low of 50.2, on the back of faster expansion in new business. But, the cost of inputs rose substantially in the month.
A reading above 50 indicates expansion and below it denotes contraction.
However, the rise in the manufacturing index could be attributed to augmented demand during the festive season. “The spurt in October PMI, led by a festive season ramp-up in production notwithstanding the slowdown in domestic economic activity, gained further footing in the last one month. It’s corroborated by a tepid pace of IIP expansion at 4.1 per cent in August,” said Shubhada Rao, chief economist, YES Bank.
PMI for the euro zone fell to 47.2 points in October, down from 49.1 in September, signalling a second successive monthly contraction of the private sector economy and the fastest rate of decline since July 2009.
The UK’s manufacturing PMI hit a 28-month low at 47.4 points in October as output, new orders and employment declined. Australia saw manufacturing activity continue to decline in October, albeit at a slower pace at 47.4 points.
The October data for China signalled a stronger expansion of manufacturing output as overall new business rose for the first time in three months. PMI for the dragon stood at 51 points in October from 49.9 in the previous month.
Similarly Japan, marred by natural disasters earlier, saw PMI at 50.6 points in October, up from 49.3 in September, signalling a marginal improvement in manufacturing sector operating conditions.
In India, higher raw material and transport costs were the main drivers of the increase in costs, reflected in high output prices.
Output rose at a faster and firmer rate in October, but power outages limited the extent of rise in production leading to marginal accumulation of outstanding business and depletion of finished goods stocks.
But, softening demand in key export countries due to the global economic slowdown slowed the pace of new business orders. October marked a reduction in employment for the third successive month due to increased salary demands from workers, making it difficult to fill vacant positions.
"The Indian manufacturing sector rebounded in October, with rising orders pulling up output. Not surprisingly, input and output prices continued to rise at a rapid pace," said Leif Eskesen, chief economist for India and Asean at HSBC.
It is more or less certain that after eight core sector industries growth declined to 2.3 per cent in September, industrial growth will continue to be sluggish unless the volatile capital goods sector improves dramatically.
The PMI data is based on a survey of about 500 private sector companies and gives a broad indication of economic trends.
November 6th, 2011, 06:27 AM
personally i doubt manufacturing policy is a game changer.
would prefer it if they changed
(a) employment laws
(b) improve the power situation in the countries so that factories can be set up in rural areas.
Manufacturing policy is just a hogwash, and nothing else! Socialist Congress has for decades strangled the manufacturing sector with myriad of laws and regulations and taxed it to death. No wonder share of manufacturing in India is abysmally low for a developing/emerging economy. Some of my friends run manufacturing operations so I've heard first hand how difficult it is for them.
Rather than simply reforming labor laws, environmental regulations, reducing and simplifying taxes, dismantling the inspector raj that terrorizes small manufacturers, Congress comes up with these grand policies that won't do much to aid manufacturing. It will create another set of rules and regulations and govt controls (this time in the name of "NIMZ"), and by extension more opportunities for corruption.
Until the anti-business and anti-entrepreneur govt stays in power, I don't have much hope for manufacturing. :(
November 8th, 2011, 02:40 PM
First, do no harm...
Does India really need a National Manufacturing Policy?
As reported in the Press, the Indian government notified its National Manufacturing Policy last week. Presumably, it was timed to demonstrate that reform is alive and kicking before Parliament reconvenes later this month. The notification followed reports of a prolonged inter-ministerial wrangle between the Department of Industrial Policy and Promotion (DIPP) – the department, under the ministry of trade and commerce, sponsored the policy – and the Planning Commission, the ministry of environment and forests, and the labour ministry. The differences were finally resolved in the Cabinet in late October. With the final text now available on the DIPP website, it is possible to take a considered view of the goals of the policy, the means proposed to achieve them and the probability of success. It is also possible to speculate on the unintended consequences and possible collateral damage.
Let’s start by summarising the key objectives of the policy and the strategies proposed. The preface refers to “concern about the stagnant and low share of the manufacturing sector in India’s GDP” as providing prima facie justification for policy intervention. In the body of the policy, this goal is further justified by a reference to the superior manufacturing performance of other Asian countries, and by the employment challenges that India faces. In itself, it’s a rather dubious basis for intervention. Let’s see why.
Given this rationale, the quantitative target is to raise the share of manufacturing value-added in GDP from the current 16 per cent to 25 per cent by 2022, implying that manufacturing needs to grow appreciably faster than the overall GDP over the next decade. This will clearly become progressively harder as the share of manufacturing rises in the overall GDP. Given that the shares of agriculture, industry (of which manufacturing is the dominant part) and services must add up to 100 per cent, it is also not clear from the policy which of the other two sectors is expected to give way within an aggregate growth target of nine per cent. For this, we will have to wait for the 12th Plan document to be finalised early next year; presumably, much of the “space” would need to be ceded by agriculture.
The main positive instrument proposed to achieve this growth acceleration is the creation of national investment and manufacturing zones (NIMZs), to be developed as integrated industrial townships. The policy envisages that “the NIMZs would be large areas of developed land, with the requisite ecosystem for promoting world-class manufacturing activity”. In contrast to existing special economic zones (SEZs), with their focus on exports, such NIMZs are envisaged as industrial townships , of a minimum size of 5,000 hectares (it is not immediately clear if these land parcels need to be physically contiguous).
Each NIMZ will be managed by a special purpose vehicle (SPV), which will exercise the powers conferred by the policy; the policy specifies that the CEO of the SPV must be a senior central or state government official. So these townships are to become publicly-run corporations for the benefit of the private sector in principle, free from the political and governance failures that plague our existing urban local bodies. The aim is to permit both clustering and concentration of infrastructure. In many ways, this is a return to the past (Jamshedpur and other steel townships come to mind), except that these townships are designed to facilitate manufacturing by a cluster of smaller units, rather than being dominated by a single large employer.
The first question that arises is whether this is a solution in search of a problem. The chart (http://www.business-standard.com/content/general_pdf/110811_01.pdf) lists the 19 member countries of the G20 (the European Union is the 20th member), ranks these countries by gross national income (GNI) per capita and indicates the share of manufacturing in each country. Apart from India’s still stunningly low per capita income compared to all other G20 members (admittedly at market prices, rather than purchasing power parity), the chart suggests there is no tight linkage between levels of income and a “natural” share of manufacturing. It is true that our Asian peers – Indonesia, China, and South Korea – have a much higher share of manufacturing than we do, but there is little reason to think they represent a “norm” to which we should aspire.
[U]Two conclusions follow. First, there is no analytical reason to conclude that our “low and stagnant” share of manufacturing reflects major distortions in our economy. Second, if we are to privilege manufacturing through special, potentially costly measures, such actions need to be justified for reasons other than merely to raise its share. By the same token, a blanket commitment to raise the share of manufacturing at any cost risks leading us into the same blind alley of interventionist industrial policy from which we have so painfully exited.
These concerns emerge from some of the statements in the policy not necessarily linked with the NIMZ. Particularly disturbing is the looseness of the formulation on trade and investment policy and government procurement (paragraph 1.22 of the policy), and the stress on specific industry verticals (paragraph 1.11 of the policy). By way of example, paragraph 1.22 contains the extraordinary statement on regional trade agreements that “it will be ensured that such agreements will not have a detrimental effect on domestic manufacturing in India”. What on earth is the point of such agreements if not to put competitive pressure on our domestic producers?
Surely the authors of the policy will cite the new wave of academic thinking associated with Hausmann, Rodrik, Stiglitz, Ann Harrison and the like to justify a return to activist industrial policy. I would remind them that this literature finds very little reason to favour manufacturing as such, but strongly supports the long-term productivity benefits of outward exposure.
Manufacturing is defined by the World Bank as industries belonging to divisions 15-37 of the International System of Industrial Classification
November 9th, 2011, 06:41 AM
Excellent opinion piece in the Business World on the new manufacturing policy. I love their dry sense of humor!
The department of industrial policy and promotion must be thanked for finally bringing out the national manufacturing policy, after years of cogitation and disputation. It is difficult to see what the disputes in the government were about, since there is nothing in the policy that an old-style Congressman could disagree with. For the same reason, it is difficult to see why the policy is called new, for it is really old wine — nimbupani to be politically correct — in a new bottle. Employment promotion, capital goods, strategic industries, small industry, government ownership of industries — it is difficult to think of older, more traditional, more socialist shibboleths.
The only surprising item that finds mention in the list is competitiveness. The old India stumbled into competiveness by accident. It had a chronic balance of payments crisis in 1991 to which it could not find a solution in its kitbag of employment promotion, capital goods, etc. etc. The International Monetary Fund offered a solution in the form of liberalisation, and sweetened it with a loan. The present Prime Minister, who was brought in to try out the medicine, swallowed it; the economy loved it. But we have yet to see if the government learnt any lesson; the new manufacturing policy suggests just the opposite.
The government finds it impossible to relax or repeal obstructive laws; so it wants to create special areas where new laws will apply. We have seen export promotion zones, and then, special export zones. These terms were too short, so now the government wants to introduce a new zone with a specially elongated name — national investment and manufacturing zone (NIMZ). “New zones” would have been enough.
The policy highlights three areas where government policy is particularly obstructive: labour policy, exit policy, and environmental controls. When a business closes down, its workers lose jobs. The government thinks that jobs are a matter of right, and that the workers must be compensated. The Industrial Disputes Act puts the compensation at 15 days’ pay for each year of employment. The problem was that by the time the compensation became due, the enterprise was generally too far gone to pay it. The government now intends to appoint a labour commissioner, whom it gives the fancy name of SPV. This commissioner will levy a tax on all running enterprises, and will pay out the compensation from the money he collects. And he will give 20 instead of 15 days’ pay.
But while it was formulating this elaborate solution, the government failed to notice that industries have already found a way of getting around the vexatious labour laws: they either employ workers for less than a year, or they outsource work to small industry, to which the labour laws do not apply. That is the reason why small and medium enterprises have proliferated in this country. The manufacture of the Special Purpose Vehicle is unlikely to reverse this trend.
The government wants the NIMZs to be environment-friendly; the NIMZ czar will be told to ensure that, and will be helped by a green committee to do so. The government gave itself the power to appropriate patents in its Patent Amendment Act of 2005. It now proposes to use this power to acquire green technology when its owners are not prepared to part with it voluntarily. Doing so will embroil the government in international disputes, but it is not afraid.
Perhaps the most interesting proposal to emerge from the national manufacturing policy relates to finance for small enterprises. The government has included them amongst those eligible for priority bank lending for decades. The money has ostensibly gone to small industry, and a good proportion of it has been lost in nonperforming assets. So government banks are unwilling to carry the burden any further. The government’s solution is venture capital funds for small industry.
Here too, though, it ignores past experience, namely that of microfinance institutions. They met a rural need that banks were not meeting. But for that very reason, they provoked envy, and both the Reserve Bank and the Andhra Pradesh government came down on them like a ton of bricks. Venture capital funds are a good idea, but they too would fail if the regulatory mechanism remained oppressive. Industry cannot work without finance, and finance cannot flourish under the government’s current enforcers. Besides what it should do, the government should also think of what it should stop doing to give industry a chance.
(This story was published in Businessworld Issue Dated 14-11-2011)
December 28th, 2011, 09:20 PM
India, Japan eye $25 billion trade
Giving a timely push to India’s manufacturing sector, Japan, on Wednesday, committed $4.5 billion for the setting up of National Investment and Manufacturing Zones as Commerce Minister Anand Sharma said that Asia’s two largest economies were on course to achieving $25 billion trade by 2014.
Trade between India and Japan was a paltry $13.82 billion in 2010-11, but signing of the Comprehensive Economic Partnership Agreement (CEPA), earlier this year, is expected to enhance commerce between the two countries.
“The year 2011 is a watershed year in our relations as we signed CEPA in February, which has begun a whole new chapter in our economic partnership. I am hopeful that the CEPA will further deepen economic engagement in terms of trade in goods, services and investment, contributing immensely to mutual prosperity,” Sharma said, addressing the business delegation led by Japanese Prime Minister Yoshihiko Noda.
He also sought greater Japanese cooperation in India’s infrastructure sector, which envisages an investment of $1 trillion in the next five years.
India’s growing agro-processing sector is another area where India and Japan can be partners, the minister said.
“We aim to double our food processing capabilities in the next 5 years and the establishment of 64 fully equipped Agro Processing Zones and Food Parks provides an area of immense opportunities.
This is a segment where Japan can be an able partner to develop cross sectoral linkages in the entire value addition chain from agriculture to retail, packaging and logistics,” Sharma said. The minister also said India’s pharmaceutical companies can be of immense value in providing affordable healthcare needed for Japan’s demographic profile.
“India has a huge pool of trained pharmaceutical scientists, doctors and researchers, which opens up avenues for joint collaborative research for new drug discoveries,” he said.
Sharma said that minimum investment in an industrial corridor being built by India with help from Japan between Delhi and Mumbai would be more than $100 billion.
The first phase of the corridor is scheduled to be ready by 2012 and is expected to boost Indian economy in a major way, where, according to economists, creaky infrastructure takes 2 per cent off annual economic growth.
The Delhi-Mumbai Industrial Corridor will cover six states of Rajasthan, Gujarat, Maharashtra, Haryana, Uttar Pradesh and Madhya Pradesh.
The Japanese Prime Minister sought greater economic cooperation between the two countries and was of the view that the growing Indian middle class can be a driving force if manufacturing sector grows in the country.
“We should also capitalise on our complementarities,” Noda said, adding that India and Japan were stepping up cooperation in various areas, including areas of nuclear cooperation and economic partnership
Manufacturing is the need of the hour in india, manufactruing industries have a lot of benefits if implemented properly. It can rovide jobs to even unskilled labour (people from remote villages), It also gives tremendous boost to our own technology industry, it also sets up an enviroment which will help us in mass manufacturing, according to some estimates we can triple our economic size within the next 10 years.
December 30th, 2011, 02:55 AM
India is set to emerge as the global development and manufacturing hub for volvo
Expects revenues for India subsidiary to shoot up to $1 bn from the present $200 mn.
India is set to emerge as the global development and manufacturing hub for Swedish bus maker Volvo Bus Corporation’s Asia range over the next four years
The company, which has production facilities in 20 countries, has global manufacturing bases in Poland, Mexico and China. While the facility in Poland supplies premium buses to Europe, the centres in Mexico and China roll out premium products for countries in the Americas and southeast Asia respectively.
“India will be the fourth global hub for Volvo. The Asia range of buses will be designed, developed, manufactured and exported exclusively from India to the rest of the world. The new 9100 model is the first in this range of products,” said Akash Passey, Managing Director and Chief Executive Officer, Volvo Buses (South Asia). The Volvo 9100 coach is a medium haulage bus designed to operate over 300-400 km. The Indian unit expects at least 40-50 per cent of overall sales to come in from the Asia product range over the next two years.
Highlighting the growing importance of India in Volvo’s global operations, Hakan Karlsson, president, Volvo Bus Corporation, said, “We have a clearly defined role for India in the future. With a planned investment of at least Rs 400 crore, India would emerge as the second largest market for us globally over the next four years. It would be the manufacturing hub for selected models and have a research and product team focused on developing specific products for Asian markets, which would then find their way to the rest of the world.”
The company, looking to sell 25,000-30,000 units worldwide by 2015, expects nearly half the volumes to come from the emerging markets of India and China. The Indian unit is projected to increase sales fivefold to 5,000 units per annum to become the second largest market for Volvo Buses worldwide over four years. India is now the sixth largest market for the company, behind China, South America and Europe.
Revenues for the India subsidiary, too, are expected to shoot up to $1 billion from the present $200 million. As much as 25 per cent of overall volumes would be registered as exports from India to countries in Asia-Pacific, West Asia and South America.
To build scale, the company is expanding its product range to offer 10 variants across both inter-city and city segments in 2012. Volvo Buses India has the capacity to manufacture 1,200-1,500 units per annum at its facility in Hoskote, Bangalore. The company is considering options to expand capacity at the existing facility and to set up a second manufacturing unit in the country.
While a final call on the site for the second unit has not been taken yet, Karlsson says investments over the Rs 400 crore (already planned) will be made for the new plant. Volvo Buses India has a market share of 70 per cent in the luxury inter-city coach segment and over 50 per cent share in the low-floor air-conditioned city bus segment.
December 30th, 2011, 08:52 AM
^^ quote the source when you post
Japan commits $ 4.5 bn to India for Delhi Mumbai Industrial Corridor
PM Manmohan Singh with Japanese PM Yoshihiko Japan has committed to invest $ 4.5 billion for the ambitious Delhi Mumbai Industrial Corridor (DMIC) project, Commerce Minister Anand Sharma said on Wednesday.
"The Delhi-Mumbai Industrial Corridor envisages investment of $ 100 billion and we have now decisively moved from the stage of planning and design to the stage of implementation,"" Sharma said.
"The Japanese government is committing $ 4.5 billion for implementation of this project,"" Sharma said. The DMIC is one of the most ambitious infrastructure projects conceived so far, which will give rise to 24 new integrated townships.
Addressing the joint session of the Federation of Indian Chambers of Commerce and Industry (Ficci), Confederation of Indian Industry ( CII) and Assocham to welcome the business delegation led by the Japanese Prime Minister Yoshihiko Noda, Sharma said the two countries aimed to increase bilateral trade to $ 25 billion by 2014 from around $ 14 billion last fiscal.
The current Indo-Japan trade is less than five per cent of the $ 300 billion Japanese bilateral trade with China.
"We have set a target to increase bilateral trade to $ 25 billion by 2014 and I feel that we are very much on course to achieve it," Sharma said, inviting Japan to invest in India's infrastructure sector.
"Over the next couple of decades, we will see massive expansion in Indian infrastructure. In the coming five years itself, we have targeted to invest over a trillion dollars in creating capacities of infrastructure, which will further catalyse India's economic growth," he said.
In the last two years, Japanese foreign direct investment (FDI) into India has amounted to $ 3.62 billion, concentrated mostly in sectors such as automobiles, electronics, financial services and telecom.
Prime Minister Noda, who is in India on a two- day official visit, said India and Japan enjoyed warm diplomatic relations and the two countries should further step up business and economic cooperation.
"We should capitalise on our complementarities," Noda said while addressing a business meeting.
"I believe that India's middle class will be the driving force if the manufacturing sector grows in India. We can achieve greater trade volumes," Noda said at a meeting with business leaders in Delhi.
"We can and should step up economic relations between the two countries," Noda added.
Noda added that about 420 Japanese companies present in India have created over 1.50 lakh jobs in the country.
During his visit, both countries are expected to sign a $ 10 billion currency swap deal keeping in view fluctuating currencies. The rupee has slid around 15 per cent this year.
This will be the expansion of a previous $ 3 billion currency swap accord. The currency swap, under which Japan could lend India dollars, would help India cope with the rapid withdrawal of funds by overseas investors amid the global financial turmoil.
This is Noda's first visit to India since he became the prime minister of Japan in September this year.
December 30th, 2011, 06:45 PM
VMC Systems Announces India’s First Indigenously Manufactured High-Wattage DC Power Systems
VMC Systems Ltd, India’s largest Telecom and Power-Conversion equipment manufacturer, plans to introduce High-Wattage DC Power Systems [DCPS], the first indigenously manufactured systems used for critical back-up applications in the industrial segment, built with SMPS technology. Under an agreement with Australia-based Rectifier Technologies Pacific Pty. Ltd. (RTP), VMC has exclusive rights to manufacture RTP’s products for the SAARC region. The new products at 220V and 110V not only enhance the performance of power supply systems but are also modular and scalable when compared with the currently deployed conventional Thyristor-based DC power supply systems.
These are a new breed of smart and scalable DCPS, catering to the next-generation requirements of Utilities [including Switch-Tripping and SCADA based protection systems], Telecommunication & Data Centers and also Railways & Metro applications. They are extremely light-weight, and take up considerably less space as compared to conventional DCPS, as these are based on Switch Mode Power Supply [SMPS] technology used to design and build these systems. Also, these are modular in nature and can be managed remotely and can be programmed with other high-end optional features.
Speaking about the agreement Mr. Peter Bennett, Director of Marketing, Rectifier Technologies Pacific Pty. Ltd. said,“RTP is pleased to collaborate with VMC Systems in India and sees a huge potential for these products, considering the present market size here.”
Elaborating about this agreement, Mr. Venkataramana, Executive Director, VMC Systems said,“RTP’s products are of a newer technology when compared to the DCPS currently being used in our country. We are happy to partner with Rectifier Technologies Pacific to manufacture these products in India. We believe SMPS based DCPS will become the main-stay choice of our customers in each of our target markets, and have invested heavily towards this goal. With a renewed focus on infrastructure, especially in the coming 12th plan, we believe Indian customers will see value in this product line.”
VMC Systems, a market leader in telecom and power conversion product manufacturer in India has presently more than 60 products across different categories. VMC Systems will customize the rectifiers to the needs of the Indian market. This coupled with the company’s extensive value-add manufacturing capabilities will see VMC offering its customers cost-competitive products with world-class quality.
January 3rd, 2012, 12:29 PM
Huge information you have shared thanks for share
January 4th, 2012, 01:43 AM
India Manufacturing Activity Picks Up
NEW DELHI—India's manufacturing activity picked up sharply in December, helped by improved demand that drove up new order growth, a survey showed Monday.
The seasonally adjusted HSBC Purchasing Managers' Index, prepared by Markit, rose to 54.2 in December from 51.0 in November.
A figure above 50 indicates expansion.
"Activity in the manufacturing sector rebounded in December led by higher demand from both domestic and foreign clients, suggesting that the momentum in the sector is not quite as weak as official and more dated [industrial production] data would suggest," said Leif Eskesen, chief economist for India and Asean at HSBC.
Weak industrial output in recent months has stoked worries of a sharp slowdown in the economy, raising expectations that the Reserve Bank of India may have to ease its tight policy stance to support growth. However, the latest data will calm those worries.
"All in all, these numbers suggest it's premature for the RBI to replace inflation with growth as the main concern," Mr. Eskesen said.
HSBC said employment in December increased marginally after falling for four consecutive months.
However, input prices rose further during December, underscoring persistent price pressures, despite the central bank's aggressive monetary tightening.
The RBI has raised its lending rate 13 times since March 2010, but paused at its last policy review on Dec. 16 as growth has been stuttering
January 4th, 2012, 11:27 PM
Manufacturing sector in India to grow as talent base expands
New Delhi: Manufacturing as a specialized stream of management education is evolving in India. Hero MotoCorp Ltd, India’s largest two-wheeler company, is setting up the Munjal Global Manufacturing Institute (MGMI) at the new campus of the Indian School of Business (ISB) in Mohali. Operations will begin in the coming academic session. The Munjals and ISB have tied up with Massachusetts Institute of Technology (MIT) Sloan School of Management to develop the school. Charles Fine, an MIT professor and expert in supply-chain strategy, is designing the course work for MGMI. The institute will help the small and medium enterprises (SMEs) sector by developing case studies, giving field exposure and providing human resources to the sector, he said in an email interview. Edited excerpts:
How did this collaboration with MIT come about?
Manpower training: Fine says India needs more people who know how to identify market opportunities and pursue them by building the right products.
The present dean of the MIT Sloan School, Prof. David Schmittlein, was formerly associate dean at Wharton Business School at the University of Pennsylvania, one of the founding partner schools of the ISB. When the ISB and the Munjal family decided to launch a new programme in manufacturing, they invited dean Schmittlein to bring MIT and the Sloan School to bring expertise in manufacturing research and education to the collaboration that ISB already has with Wharton and the Kellogg School at Northwestern University.
What kind of curriculum are you devising for MGMI?
The curriculum design builds on both the existing curriculum in operations management at ISB-Hyderabad and the MIT Leaders for Global Operations programme. In particular, we are planning to develop and offer courses in operations management, global supply-chain networks, product innovation and development, manufacturing and operations innovation, lean production and six sigma, sustainable manufacturing and operations, operations strategy, pricing strategy and operations, operations for entrepreneurs, and performance management. In addition to the courses, we intend to have each student participate in a team-based, for-credit experiential learning project to work on challenges set in a participating manufacturing company.
What is the scope of the relationship?
Formally, the agreement proposes that MIT Sloan faculty (primarily, at first, myself and my colleague, Prof. Vivek Farias), will support and advise ISB on curriculum and course development, faculty hiring and development, and research collaboration and development. As the relationship evolves, we will hopefully bring more MIT faculty to be involved with various aspects of the manufacturing research and education programmes. In parallel to the MGMI relationship, MIT has also agreed to collaborate with ISB on a second institute at the Mohali campus—the Punj Lloyd Institute of Physical Infrastructure Management. The MIT professor coordinating this relationship is Richard de Neufville, professor of engineering systems and civil and environmental engineering.
With India focusing on manufacturing, what role can MGMI play?
The manufacturing sector in India will grow as the nation grows a talent base infused with vision, leadership, and manufacturing knowhow. India needs more people who know how to identify market opportunities and pursue them by building the right products and manufacturing capabilities. The challenge is to comprehend manufacturing both at a micro level (design and management of factory and people systems) and at a macro level (design and management of end-to-end value chains). MGMI research and curriculum will work to build a knowledge base and curriculum to deliver this broad range of knowledge and skills to managers and entrepreneurs in India.
Is there any specific element that Hero MotoCorp wants incorporated in the curriculum?
Sunil Munjal (joint managing director Hero MotoCorp) sits on the advisory council for MGMI and, so far, in our meetings, he has expressed only desires consistent with building a world-class institution to support all of India’s manufacturing needs. To date, I have seen no evidence that there is an agenda to support any specific needs of the Hero group. In fact, after touring one of Hero’s motorbike factories, I believe that Hero has achieved a level of manufacturing excellence that is literally world class and that Hero is more likely to be a source of knowledge that we can bring to the MGMI constituencies. In fact, last week (29 December), MGMI offered its first executive workshop, a one-day programme called Operations for Entrepreneurs, which drew attendees (small business owners) from across India, including Kolkata, Hyderabad, and the greater area around New Delhi. We asked the Hero group to host the meeting and to offer a factory tour. Many of the attendees had never seen such a sophisticated manufacturing plant and their eyes were opened significantly by the experience. Its purpose was to begin to engage the SME manufacturing sector in India so that we might write cases about their challenges— for use in the classroom—and so that we might recruit them to host student internship projects as a part of the curriculum we intend to offer.
What is your sense of the demand for executive education in India?
To date, we have been focusing our efforts on getting the curriculum for the Mohali PGP (MBA) programme up and running. I expect that there is a significant market for manufacturing executive education in India and that MGMI will be able to offer attractive programmes in this space, but we have not yet begun planning a curriculum for that set of opportunities.
Your research focuses on supply-chain strategy and value chain road mapping. Is this going to feature in the MGMI curriculum? Can this be applied in the Indian context?
At MIT, we have typically distinguished what we call “SMALL M” manufacturing, which occurs within the four walls of a factory, and “BIG M” manufacturing, which addresses all of the activities along the end-to-end value chain. The MIT LGO (Leaders for Global Operations) programme has always struck a balance between the two, with a belief that a firm or a nation cannot be successful in one without the other. My research has focused much more on the “BIG M” issues and I do believe that it is an appropriate domain for ISB and MGMI research and curricula.
January 4th, 2012, 11:29 PM
Philips eyes India as manufacturing hub
Chennai, Jan. 4:
Dutch consumer electronics giant Philips, which last year moved its domestic appliances headquarters to China, is set to make India its global hub for manufacturing and innovation for its kitchen appliances division. This could happen in the next couple of years.
The company, which acquired the Chennai-based Maya Appliances — maker of Preethi-branded mixer grinders early last year — is planning to set up an integrated facility in Chennai to manufacture its range of small appliances, including mixer grinders, induction stoves, electric cookers, juicers and food processors.
Saying it will be a little too premature to talk about the investment plans, Mr Vijay Srinivasan, Managing Director of Maya Appliances, hinted that to set up one manufacturing unit in this segment would require anywhere between Rs 30 crore and Rs 50 crore. “And, hence an integrated unit may require surely upwards of Rs 100 crore,” he said.
According to him, following the acquisition last year, the process of integration of the two companies — in terms of technology collaboration and certain back-end operations — is completed. However, as already decided, Preethi will continue to remain a wholly-owned subsidiary of Philips.
Though Philips has not started manufacturing its product range at Preethi's facilities as yet, Mr Srinivasan has not ruled out the possibility of that in the near future.
Last year, Philips moved the headquarters of its domestic appliances business to Shanghai to “spur revenue growth in China and the region”. Newspaper reports, quoting the division's head Mr Pieter Nota, said, “As we see the centre of gravity for growth in domestic appliances will be in China and India, it makes sense to have the leadership in China and have a leader from Asia.”
Preethi today added a range of new products to its bouquet. It launched Lavender Pro and Power One — middle-segment and economy model mixer grinders — priced in the range of Rs 2,000-3,000.
Announcing the launch, Mr T.T. Siddarth, Director – Special Projects, said the company sold 1.5 million units of mixer grinders last years – which translates roughly into 4,000 units a day. “We have been registering 25 per cent growth year-on-year since 2002,” he said. The company, for the year 2010-11, registered a turnover of Rs 430 crore; and for the current financial year, it expects to post Rs 525 crore. “Our target is to hit Rs 600 crore by 2012-13,” he said.
Preethi's current product portfolio includes mixer grinders, auto cooker/warmers, induction cooktops, coffee makers, kettles and irons. It plans to add more products such as hand blenders and juicers. It has seven manufacturing facilities spread across Tamil Nadu and Himachal Pradesh.
January 31st, 2012, 02:33 PM
Swedish firm to invest Rs 150 cr in India plant
Swedish truckmaker Scania will invest an initial Rs 150 crore in an assembly plant in southern Bangalore city for on-road vehicles, the head of the company's Indian unit said on Tuesday.
The company, which entered India in 2007 with heavy-duty off-road vehicles, targets sales of 2,000 trucks over the next five years in India, Henrik Fagrenius, managing director of Scania Commercial Vehicles India said.
Sales of commercial vehicles in India are expected to grow by 18-20% in the financial year that ends in March, according to an industry body, far outstripping car and motorcycle sales growth in Asia's third-largest economy.
February 1st, 2012, 09:10 AM
India's factory PMI jumps to 8-month high in Jan
BANGALORE: India's manufacturing sector grew at its fastest pace in eight months in January as factory output surged the most on record on increased domestic and foreign demand, a business survey showed on Wednesday.
The HSBC manufacturing purchasing managers' index (PMI) , compiled by Markit, jumped to 57.5 from 54.2 in December.
"Activity in the manufacturing sector rebounded again in January led by higher demand from both domestic and foreign clients, suggesting some recovery in sentiment in recent months," said Leif Eskesen, economist at HSBC.
India's headline PMI has held above the 50 level that separates growth from contraction for almost three years, underlining the sector's resilience in the face of a global downturn and euro area debt crisis.
India's factory output sub-index jumped to 62.9 in January from 55.8 in December, the biggest rise from one month to the next on record. Both the output and the new orders indexes rose to their highest level since May last year.
The figures suggest a startling pick up in a sector that has been battered by feeble growth in the United States and Europe and a prolonged spell of monetary policy tightening in India.
Industrial output expanded 5.9 percent in November from a year earlier, official data showed last month showed, beating all forecasts and swinging from a contraction of 4.7 percent in October.
Analysts have cut their forecasts for the economy and expect it to grow in the year to March at its slowest pace in two years. The economy grew 6.9 percent in the quarter ended September 2011.
April 7th, 2012, 04:05 AM
National Manufacturing Policy targets looks unachievable (http://timesofindia.indiatimes.com/india/Bangalore-Chennai-public-bus-fleets-most-efficient/articleshow/12565480.cms)
CRISIL Research has come out with its report on 'National Manufacturing Policy'. According to the research firm, Employment intensity of manufacturing will continue to decline due to technological improvement. However, through policy support, the pace of decline can be arrested, which would result in significant job additions.
CRISIL Research, India's largest independent and integrated research house, believes that the two primary objectives of the National Manufacturing Policy (NMP) announced in November 2011 - raising the share of manufacturing to 25 per cent of GDP and generating 100 million additional jobs in the manufacturing sector by 2021-22 - would be difficult to achieve. According to our estimates, by 2021-22, the manufacturing sector's share in GDP would grow to 17 per cent and this sector can, at best, generate an additional employment of 69 million.
To raise the share of manufacturing in India's GDP to 25 per cent by 2021-22 from 15.4 per cent currently, the manufacturing sector will have to grow at 16.3 per cent per year in the next decade. This is double the rate of growth of 8.1 per cent per year achieved in the last decade. No major country, even during periods of favourable domestic and external environment, has seen such high decadal manufacturing growth, except South Korea in 1970s. With an effective implementation of NMP, manufacturing sector could grow by 10.5 per cent per year up to 2021-22. This would raise the share of manufacturing in GDP to 17 per cent by 2021-22 from 15.4 per cent in 2011-12.
"Sustaining manufacturing growth of above 10 per cent per year would be an overwhelming challenge as the global environment will remain less favourable over the next few years. Even to achieve 10 per cent growth per year, the role of policy in addressing supply side bottlenecks such as infrastructure will be critical," said Mukesh Agarwal, President, CRISIL Research.
The aim of creating 100 million additional jobs in manufacturing by 2021-22 also presents a significant challenge as the employment intensity (measured as the number of people required to produce manufacturing output of Rs 1 lakh) has been declining over the last decade. Manufacturing intensity declined to 7.0 in 2009-10 from 11.5 in 1999-00. If this trend continues, the employment intensity would fall to 4.5 by 2021-22. In such a scenario, even if manufacturing grows at 10.5 per cent in the next decade, only 19 million additional jobs will be created in the sector.
CRISIL Research estimates that if the NMP succeeds in limiting the fall in employment intensity to 5.6 by 2021-22, additional employment of 69 million can be generated over the next 10 years vis-�-vis 15 million created during the preceding decade. Of the 69 million additional jobs, 19 million will come from higher growth in manufacturing. The balance 50 million jobs will be the outcome of efforts aimed at promoting the role of labour in manufacturing activity.
"Employment intensity of manufacturing will continue to decline due to technological improvement. However, through policy support, the pace of decline can be arrested, which would result in significant job additions. To achieve this, it would be critical to improve the attractiveness of labour relative to capital (via labour market reforms), accelerate appropriate skill development programmes and encourage labour-intensive industries," added Vidya Mahambare, Director, Economy Research, CRISIL.
Disclaimer: CRISIL has taken due care and caution in preparing this Report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors in transmission or for the results obtained from the use of such information / Report. CRISIL especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this Report.
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April 9th, 2012, 07:46 AM
Mukherjee for stronger manufacturing sector
Union Finance Minister Pranab Mukherjee said here that India’s manufacturing sector needs to be strengthened in order to revive the economy from the present crisis and improve the GDP position.
Delivering the address at the 11th annual convocation of Visvesvaraya Technological University at Belgaum on Sunday, Mukherjee said post-2007 the development of manufacturing sector was at a slower pace and there is an urgent need to improve the pace. The National Manufacturing Policy aims at increasing the share of manufacturing sector in GDP to 25 per cent.
“For this there is need for improved technology that is cost effective without compromising with the quality. We have to conform with the international standards as far as quality is concerned. For this there is need for skill development. The technological universities can play an important role in producing efficient and skilled technocrats” he said. Conecptualisation on scientific temperament and social concern is the need of the hour, Pranab said and highlighted the importance of creating skilled workforce.
Stating that infrastructure development was an important aspect in economic development Mukherjee said the government had envisaged augmenting Rs 50 lakh crore for infrastructure development through Public-Private Partnership (PPP) during 12 five year plan. He said the government had relaxed several regulations to allow smooth inflow of investment into the country. The FM said the country’s economy could recover from the turbulence with inflation almost hitting the two figure mark.
Mukherjee said the National Skill Development Corporation had been set up to promote skill development among the youths. He called upon the fresh engineering graduates to have a positive outlook and serve the country. “Use of technology with social, economic and political concern is needed to ensure that India becomes a super power by 2020,” he asserted.
April 15th, 2012, 10:16 AM
can someone give the link to detailed analysis of National manufacturing policy with expected future impacts on Indian economy.
April 15th, 2012, 11:07 AM
^^Let it be implemented first. The effects on economy are all hyped up as of yet. Wiki it if you want a view of the fantastical.
April 15th, 2012, 11:13 AM
Cabinet may approve National Electronics Policy within a week (http://economictimes.indiatimes.com/news/news-by-industry/cons-products/electronics/cabinet-may-approve-national-electronics-policy-within-a-week/articleshow/12673466.cms)
NEW DELHI: The government is likely to approve National Policy on Electronics (NPE), which aims to create a domestic electronics manufacturing eco-system worth $400 billion by 2020, within a week.
"Inter-ministerial consultation is complete on NPE and cabinet note has been sent. We expect the cabinet to approve the policy within a week," a senior government official told PTI.
According to draft of NPE ,which was put in public domain, the policy aims to promote domestic manufacturing of electronic products. The aim is to achieve a $400 billion turnover by 2020, involving investment of about $100 billion and employment to around 28 million people at various levels.
As per estimates, demand in the Indian market was $45 billion in 2008-09 and is expected to reach $400 billion by 2020. The domestic production in 2008-09 was about $20 billion. The actual value-addition in the domestically produced electronic product ranges between 5 to 10 per cent in most cases.
At the current rate of growth, the domestic production can cater to a demand of $100 billion in 2020 as against a demand of $400 billion. This means there could be a demand-supply gap of nearly $300 billion by 2020.
Under NPE, the government has set a target to increase the export in electronic system design and manufacturing (ESDM) sector from the estimated $5.5 billion at present to $80 billion by 2020 and provide stable tax regime for period of 10 years.
As per the proposal, telecom products specifically mobile phones will be declared goods of special importance under the Central Sales Tax Act.
The government also aims to promote around 200 clusters across country under NPE which will house full eco-system for manufacturing electronic products like design house, training cent res, manufacturing facility among others.
April 22nd, 2012, 04:13 AM
Manufacturing, power beat services as top FDI destination (http://www.indianexpress.com/news/Manufacturing--power-beat-services-as-top-FDI-destination/939866/)
At a time when the share of the service sector in the country’s GDP is consistently increasing, equity foreign direct investment inflows into India are seeing a reversal of trend in terms of sectoral exposure.
As against the situation five years back, when the services sector cornered the bulk of the FDI inflows into the country, the manufacturing sector is clearly emerging as the new favourite for overseas investors, according to an RBI study on FDI inflows.
While this is largely on account of service sectors such as business and financial services losing out on inflows over the last few years, key manufacturing sectors and segments such as ‘electricity and power generation’ have been seeing renewed investor interest, resulting in the share of manufacturing with respect to total FDI inflows seeing a sharp spike.
From a sectoral perspective, the share of services with respect to total FDI inflows has come down from almost 57 per cent in 2006-07 to about 30 per cent in 2010-11. :(
On the other hand, the shares of manufacturing and ‘others’ —largely comprising ‘electricity and power generation’ sectors —has increased over the same period to over 32 per cent, up from less than 18 per cent.
In the past, FDI into India largely flowed into services sector — which had an average share of 41 per cent in the past five years — followed by manufacturing (around 23 per cent), mainly routed through Mauritius (with an average share of 43 per cent in the past five years) followed by Singapore (around 11 per cent).
Read more at the link provided, the article is quite long :)
April 28th, 2012, 12:56 PM
NMCC working on mechanism to enable IITs, IIMs help SMEs (http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/nmcc-working-on-mechanism-to-enable-iits-iims-help-smes/articleshow/12897201.cms)
NEW DELHI: The National Manufacturing Competitiveness Council (NMCC) is working on a mechanism to enable experts from IITs and IIMs to help Indian Micro, Small and Medium Enterprises (MSMEs) improve their managerial skills, upgrade quality and unleash innovations, according to a top official of NMCC.
"We are trying to work out a mechanism to enable experts from top academic institutions such as IITs, IIMs help Indian MSMEs become more competitive through improvement of their managerial skills, development of better quality products and become more innovative," said member secretary of NMCC Mr Ajay Shankar while inaugurating an Intellectual Property Facilitation Centre (IPFC) in New Delhi on Thursday, April 26, 2012.
The IPFC has been established by the Federation of Indian Micro and Small & Medium Enterprises (FISME), the leading representative of Indian Micro, Small and Medium Enterprises (MSMEs), as part of the mandate given to it by the Ministry of Micro, Small and Medium Enterprises under the National Competitiveness Programme. This is the third such centre established by FISME after those already operational in Bangalore and Hyderabad.
"The IPFCs being established by FISME will not only offer the services mandated by the Ministry of MSME such as registration of patents, trademarks etc. but also a few additional services such as IP audit, IP management systems and an IP exchange in a bid to offer a complete business model for MSMEs," said FISME President Mr V.K. Agarwal in his welcome address during the inauguration function on a day which also happens to be the World Intellectual Property Day.
"By establishing these IPFCs, FISME is doing a great job as they will help bring about a qualitative transformation in Indian manufacturing," Mr Shankar said, adding that "this was a landmark event." He said for the National Manufacturing Policy to succeed leading to an increase in the share of manufacturing in India's GDP to 25% and creation of 100 million additional jobs, MSMEs which constitute the backbone of the economy must succeed, and innovation and better IP management was critical for such success.
Giving the example of Germany, Mr Shankar pointed out how small and medium enterprises in that country, the Mittelstand are global leaders in many products mainly because of innovation and constant improvements in quality which they can leverage through efficient management of their intellectual property.
To highlight the importance of intellectual property in today's globalised economy, Mr Shankar gave the examples of Apple and Qualcomm. "These companies are world leaders and Fortune 500 companies but they do not manufacture any products - they only own intellectual property which is used in all kinds of products manufactured by other companies," Mr Shankar said.
The new IPFC located at FISME's New Delhi office will serve MSMEs in the Delhi NCR as also neighbouring regions in Haryana, Uttar Pradesh and Rajasthan, Mr Agarwal said. He said these facilitation centres employ qualified and trained personnel including legal professionals and patent attorneys to guide and help MSMEs secure and protect their intellectual property in a convenient and cost effective way. Incidentally, MSMEs constitute India's economic backbone contributing more than 50% of India's manufacturing output and employing nearly 90% of India's manufacturing workforce. They also account for nearly 40% of India's Gross Domestic Product (GDP) and 45% of the country's total exports.
May 1st, 2012, 03:51 AM
Govt wants 'Made in India' PCs (http://timesofindia.indiatimes.com/tech/news/hardware/Govt-wants-Made-in-India-PCs/articleshow/12938032.cms)
Want orders? Must invest. It's a tried-and-trusted formula of many policymakers, including those in India, to woo investors. In the Indian defence sector, for example, foreign companies are bound by what are called offset obligations, which require them to procure a part of the equipment from local suppliers. The aim is to boost the domestic arms industry. Now, the government has taken the same approach in electronics goods, quietly tweaking its earlier policies for the segment.
The welcome mat is a procurement budget for 30 big-ticket government projects -- each worth a billion dollars and at various stages of launch. This is besides routine orders. Taken together, the total orders are estimated to be worth nearly $50 billion a year. Massive? It sure is. Problem is the government will only pick domestically manufactured electronic goods for these projects, according to a recent cabinet decision. The government has in effect asked global hardware makers to set up shop in India quickly.
At first glance, electronics manufacturing in India has finally got a boost after years of neglect. The lion's share of electronic products that India consumes is imported. The Indian electronics goods industry is at best a ragtag bunch of businesses providing value - that too, a mere 5-10 % - to the imported goods.
Indians are suckers for these goods thanks to the increase in their disposable income. The total demand for electronic goods is projected to reach $400 billion by 2020. But it is unlikely that India's electronics import bill, which now stands at $45 billion, will keep pace. This difference, it turns out, was both a wake-up call and trigger for the government to come up with a new policy for the electronics goods sector.
To make the 'Made in India' cut, the value addition has to be 25% in the first year and 30% in the second year. Currently, electronics giants such as Samsung, LG, Dell and HP import 90% of hardware parts. The value addition in electronics is a mere $2 billion and the government expects a significant jump in future.
The question is will foreign companies play ball? Most companies are disappointed with the new government policy. They wanted a tax incentive-led manufacturing ecosystem to shift manufacturing bases to India.
Representatives of electronics hardware manufacturers who ET spoke to said it's impossible for any player to jumpstart the way government wants.
"In the long run, the policy will give more opportunities for investment in manufacturing. But companies have reconciled to the fact that 25% value addition in the first year is not possible, not even for competitors," says Alok Bhardwaj, senior vice-president of Canon India and president of IT and electronics hardware manufacturers' lobby, MAIT. He claims the government has no option but to procure the same way as it does now, at least for a few more years.
But government officials don't buy this argument. "This is an industry where 100% FDI is allowed. If established players hesitate, new ones will set up shop. The government procurement will be worth thousands of crores of rupees, and no one can afford to ignore it," a senior official of department of information and technology said on the condition of anonymity.
So will the procurement kitty do the trick? The government , which unveiled an ambitious manufacturing policy looking to create 100 million jobs in 10 years, is confident the lure is too big to overlook. The annual procurement budget of ministries and companies they run was a staggering 11 lakh crore in 2010 - comparable to the GDP of nations such as Finland and Chile.
That's not all. The so-called government electronics mission projects, which will be rolled out over the next 10 years, also have the potential to benefit hardware makers significantly. The National Optical Fibre Network project, for example, is worth Rs 20,000 crore. The project, which the cabinet approved four months ago, aims to provide broadband connectivity to panchayats so that banking and health services can be accessed online.
Similarly, National Knowledge Network, a high-capacity infrastructure project to connect education and research institutes, will spend Rs 6,000 crore in 10 years. These apart, there are also 'missions' such as the e-district programme, IT component of National Rural Health Mission, UID programme and National Population Register, among others.
In the near future, government spending on electronics products is expected to rise further. LED and LCD TVs have are common sight in the cabins of high-ranked bureaucrats and ministers. The government's preferential procurement policy will also include all electronics products with security implications.
Industries not on board While approving the policy, the cabinet was clear that it complies with India's commitment to the World Trade Organization (WTO). India is not a signatory to WTO's government procurement agreement. That gives New Delhi room to prefer domestic hardware makers over importers.
Federation of Indian Chambers of Commerce and Industry secretary general Rajiv Kumar, however, says that the government's push will work. "It is an impetus both for current manufacturers to increase value addition and for new players to begin afresh," he says.
Yet, the government may still not have its way. WTO rules also say no country can impose duty on import of electronics products. As most of the high-valued components are small in size, it makes economic and logistics sense for global hardware makers to ship components from select locations rather than manufacture it in India.
And given the possible non-availability of domestically produced electronics products at least in the first couple of years because of the delays in setting up shop, introduction of the policy may dilute its vision, says a government official connected to the policy. Ministries and departments may be given a free hand to choose the items for which they want to apply this policy. "But once a department chooses an item, it has to procure at least 30% of that item domestically," said the official.
In some products, there is already value addition in India. In the case of batteries, 40% of value addition is happening in India. "But every brand has 40% value addition in batteries. Where is the comparative advantage for anyone?" asks Bhardwaj of MAIT.
For electronics makers, the challenge is not just to convince their global boards to establish facilities in India , but also to convince their suppliers to do the same. Dell, for example, recently conducted a survey among 35 global suppliers. Half of them said they had never considered India for investment. And those who were toying with an idea to establish facilities in India are mainly driven by a stable tax regime, opportunities for sales within India and possibility of realising operational cost savings among others, says the company's internal survey report.
"Preferential market access policy is unique in itself. It is unviable due to lack of a robust component manufacturing ecosystem in India. The government should instead attract investments by announcing an incentives scheme and reducing the impact of taxation," says Chetan Krishnaswamy, director, corporate affairs, Dell India. A Samsung spokesperson declined to comment. Despite the attractive and unavoidable shades of the policy, manufacturers may still not play ball in all categories. "The computer-monitor market has been stagnant for quite sometime. Why will manufacturers then set up factories here? But one can increase value addition in PCs and printers where there has been a robust market," says a senior executive of an IT hardware manufacturer.
Political drivers For its part, the government is not driven by economics. There is a political angle behind its move. To create 100 million jobs in 10 years, the government aims to increase the share of manufacturing sector to 25% of GDP. With land acquisition becoming increasingly difficult and prices of industrial land escalating, the government has no option but to look for those manufacturing units that do not need huge tracts of land. It is easy to see why electronics manufacturing, which needs power and high-quality water but little land, has become the government's focus area. Without the headaches and the potential of job creation, a successful rollout of the new manufacturing policy will be a big help in the 2014 general elections.
Ajay Shankar, member secretary of National Manufacturing Competitiveness Council, a government-funded think tank, agrees that the electronics procurement policy is linked to the government's new manufacturing policy. "Yes, employment generation is the basic thrust of the manufacturing policy," he says.
But in its enthusiasm to create jobs, the government may have come up with another hurriedly prepared policy. The industries are not on board. That puts a big question mark on the policy's success.
Please ignore the rona dhona by the writer :lol: :cheers:
June 15th, 2012, 04:34 AM
Philips India sets up healthcare manufacturing facility in Chakan
Philips Electronics India Ltd has commenced operations at greenfield healthcare manufacturing facility for imaging systems in Chakan, near Pune.
This is the company's sixth centre of excellence in India after Netherlnds, Germany, China, USA and Israel.
This manufacturing facility will focus on diagnostic imaging solutions, initially developed for the Indian market and then for global markets.
These solutions will primarily target cardiology (catheterisation lab) and radiology (general X-ray) applications.
Commenting on this, Gene Saragnese, CEO Imaging Systems at Philips Healthcare said, “In order to make a difference in this market, we need local expertise, low-cost manufacturing capacity and close relationships with our customers.
Equally exciting, several demanding customers in global markets are already using our ‘Designed and Made in India’ products, and the feedback is very positive."
Krishna Kumar, President, Philips Healthcare India said, " The Pune facility is producing X- ray and cath-lab equipment backed by Philips quality that is affordable for tier-two and tier-three towns and rural markets.
Many of the products and components developed in Pune can also serve the needs of mature markets looking to replace or upgrade entry-level diagnostic devices.
The first products to be manufactured in the facility will be diagnostic X-Ray systems and the Allura FC – Philips’ first India developed cauterization lab.
The Allura FC is used in the diagnosis and minimally-invasive treatment of cardiovascular disease.
The annual production capacity of these products is around 900-1000 units.
The research and development for all the products of Philips is done in its Bangalore R & D centre.
The facility will manufacture products for oncology, critical care and respiratory care along with radiology and cardiology.
Krishna Kumar added, “India and other growth geographies have unique needs. We must meet the criteria that healthcare professionals demand in these growing markets, such as durability, dealing with interrupted power supplies, limited radiology technician time per patient and affordability. Our ‘Designed and Made’ in India products tick all these boxes.”
In 2008, Philips initiated the expansion of its industrial and commercial footprint in India with the acquisition of Alpha X-ray Technologies and Meditronics, a manufacturers of cardiovascular X-ray solutions and general X-ray systems, respectively.
This enabled Philips to expand its portfolio and deliver lower cost products that meet the growing needs of customers in India and other global markets.
June 15th, 2012, 04:36 AM
How equipment manufacturer JCB India's local vendors went global
For construction equipment manufacturer JCB, it has been a long and patient innings in India. After the Staffordshire, UK-based company first started selling machines in India in 1979, it took 24 years to sell the first 25,000 pieces.
The journey from 25,000 to 50,000 was much shorter, taking four years and the next 50,000 took even less time. Their persistence though, has paid off, the best indicator being that one of the machines it makes, the backhoe, is now generically known as 'the JCB' - irrespective of the manufacturer.
According to Vipin Sondhi, managing director & CEO, JCB India, "A large part of the company's success in India can be attributed to staying the course over the first few decades when infrastructure was not on anyone's agenda." JCB India started off as a joint venture with the Kirloskar group before becoming a wholly-owned entity in 2003.
According to Accenture's Vision 2020 report on the construction equipment market, the industry is slated to grow at 16-17% CAGR from $3.3billion in 2010 to $20-25 billion by 2020 - or from 60,000 to 3,30,000 units. Given that JCB has a market share of over 50% in India, and with two manufacturing units already in place, it is well poised to gain from this growth spurt.
Listing the key components behind the company's success in India, Sondhi says it's a mix of having the right product mix for the local conditions, developing a dealership network over the years, providing adequate training and having the best team in the industry. "For the scale we have, we also need hundreds of suppliers. The volumes encourage the suppliers to set up automated or semi-automated facilities. Increasingly, a number of our suppliers are diversifying."
Given that the suppliers are at the core of how the company performs, it isn't surprising that JCB pays special attention to them. Over the last few years, the company has encouraged some of its vendors to start supplying to the parent company in the UK.
"We have one global quality, and a part that is supplied to us can easily be fitted onto a similar machine elsewhere in the world. We are encouraging our vendors to be suppliers for JCB, not just JCB India," says Sondhi, with pride. For the suppliers, the increased volumes bring in economies of scale which only adds to their competitiveness. Veena Industries, which does fabrication work and supplies machine components to JCB, has been supplying to JCB UK since 2005. Atin Agarwal, director, Agarwal Group, the holding company for Veena Industries says that they've set up a sales and distribution arm in the UK which acts as a local vendor. While the global business is pegged at about Rs 10 crore as compared to Rs 60 crore for JCB India, Agarwal says that it is growing rapidly.
"Over time, we've started supplying to other international customers like Caterpillar and Mecc Alte as well," says Agarwal. JCB holds an annual vendor conference in India, for which it invites people from the purchasing departments from other JCB factories globally.
"That is when a lot of things are set into motion. They visit the suppliers' plants and see that they conform to global specifications; and India is definitely more competitive than the rest of the world," says Sondhi. Another initiative which feeds into its global supplier programme, is the JCB-CII supplier cluster.
Started two years ago with an initial batch of 12 suppliers, it now boasts of 40 suppliers, of which 70% supply to JCB UK. Deepak Shetty, vice-president and business head-heavyline India Business Unit, JCB India, says that they would often reject the components supplied to them on account of quality or some other factors
June 15th, 2012, 04:41 AM
Indian Businessman Making Hollywood's Weaponry (http://www.manufacturing.net/news/2012/06/indian-businessman-making-hollywoods-weaponry)
SAHIBABAD, India (AP) — On the outskirts of New Delhi, in a cramped concrete workshop where the air shimmers with the light of welding torches, an Indian businessman has become a master craftsman of Napoleonic swords. And medieval chain mail armor. And World War II hand grenades and helmets.
From Hollywood war movies to Japanese Samurai films to battle re-enactments across Europe, Ashok Rai, 31, is one of the world's go-to men for historic weapons and battle attire.
Rai's workshop reverberates with the sounds of metal being hammered and beaten into chain mail, swords, axes, muskets, sabers, spears and helmets.
Rai, a trapshooting enthusiast, says he has been a history buff since childhood.
"I would watch every war movie that came to town. All my life, I've been reading up on all the major battles in history. Now when we make medieval battle gear it's easy for me to explain to my craftsmen exactly what's to be done."
He dove into the business at age 17, when he heard a French champagne-maker needed 1,000 swords to give away as souvenirs.
Rai, whose father had a small factory making tourist handicrafts, traveled to the northern city of Amritsar, the holy city of the Sikh religion, to find sword-makers to make the replicas.
"It took some doing to get the order ready on time. But it got me thinking," said Rai. "Here was a niche worth exploring."
Soon, he dropped out of college, transforming his father's company to specialize in battle attire and weapons stretching from the 10th century to World War II.
Shortly afterward, he said he had a surprise visit from filmmakers preparing for the Tom Cruise movie "The Last Samurai."
That led to dozens of orders for all kinds of props for historical movies and documentary films. From Napoleon-era swords, to American Revolutionary muskets and sabers, to World War II helmets and uniforms.
Rai was in business.
Other Hollywood blockbusters followed. He says he has made footwear for the Russell Crowe movie "Robin Hood," and chain mail for "Kingdom of Heaven," the Orlando Bloom film set during the 12th-century Crusades.
"We created 1,500 chain mail suits of armor," for "Kingdom of Heaven," using aluminum to keep the costumes light.
Around 500 workers, mostly women, riveted the links to form the armor. "Chain mail is very labor-intensive. Each link has to be riveted to the next," he said.
These days, though, Rai is shifting from Hollywood to battle reenactments. It's a big business, particularly in Europe, and unlike Hollywood — where weapons are made just to look good, and often are made from lightweight metal or plastic — he likes making weapons that have the heft of the originals.
Rai has set up his own company in Germany to market battle gear to re-enactors and medieval fairs, and tied up with a Spanish company to rent uniforms and equipment to documentary filmmakers.
On a recent Saturday, scores of metal workers were creating hundreds of Norman helmets for a reenactment of the Battle of Hastings in Rai's factory in Sahibabad. A worker fed sheets of metal into a huge, slow-moving metal press. The press came down with a loud bang, spitting out a rough spherical shape.
Elsewhere in the warren of rooms, metalworkers used hammers to beat the spheres into helmets. Others welded brass trimmings to the helmets, which were then polished to join row upon row of shining orbs on the ceiling-to-floor shelves at one end of the workshop.
"They have to look authentic," said Rai, fingering the steel head gear with its long noseguard.
He takes special care to ensure that the weapons are historically accurate. Over the years, he has spent a lot of time doing research on medieval costumes and on getting weaponry right to the last detail.
He recently traveled to the Kaiserburg Museum in Nuremberg, Germany, to study the kind of metalwork detail that went into making suits of armor. For a recent order of World War II helmets, he ensured the leather liners were stamped with numbers used by the original manufacturers.
That kind of effort, he says, helps protect his business from competition.
"This is painstaking, labor-intensive work. There's a lot of research that has gone into our inventory, and that's not easy to replicate," he said.
During a recent visit, Rai's workers were gearing up for all sorts of combat: reenactments of the Battle of Waterloo and the American Revolution and a documentary film about Germany between the two World Wars.
The pink, two-story workshop was a hive of activity, despite outside temperatures of 45 degrees Celsius (113 degree Fahrenheit) that kept things hotter inside. The clank and thud of the metal-stamping machines, the metallic whine of grinders and the unceasing hammering raised decibel levels to unnerving levels.
The upper floor is a maze of rooms for the tailors. Some were cutting thick worsted khaki fabric, while others used industrial sewing machines to stitch fabric into military overcoats for a World War II reenactment.
In another room, groups of women sat on the floor stitching buttons, military ribbons and insignia onto great coats that could have served soldiers in Napoleon's army. Nearby, a set of men were fashioning padded coats with leather fasteners to be worn under the chain mail.
Rai said his biggest challenge is keeping the factory going during the frequent power outages that dog Indianindustries, some lasting as long as 10 hours.
But despite those outages, and the global economic crisis that has hammered much of the world since 2008, business is bustling.
Last year, turnover was $3 million.
More than a decade after starting his business, Rai has no regrets about missing out on college.
"I'd probably be working in an office, or a bank ... pushing a pen," he said. "Instead, I feel I've become weaponmaker to the world."
August 17th, 2012, 12:54 PM
Indians find manufacturing as attractive career option: Survey (http://economictimes.indiatimes.com/news/news-by-industry/jobs/indians-find-manufacturing-as-attractive-career-option-survey/articleshow/15517365.cms)
MUMBAI: Even as India ranked least amongst the developing economies when it came to the government support in manufacturing sector the country topped with most agreeing it to be a practical career option, a recent global manufacturing survey says.
India ranked the least amongst developing economies at 60 percent when it came to government support, like policies and reforms, for the manufacturing industry, a new report 'Engaging the Modern Manufacturing Workforce' commissioned by Kronos incorporated and conducted by IDC reveals.
However, when asked how does the future of manufacturing look as a career option for the next generation, 92 percent Indians thought it as a practical career option, it points out.
Australia and China were ranked lowest with 74 percent and 70 percent, respectively, in considering manufacturing as a career option.
It also reveal that about 32 percent Indian manufacturers claimed that manufacturing was detrimental to the economy of the country.
The study included new primary research with 550 workforce management stakeholders across 11 countries, including Australia, Brazil, Canada, China, France, Germany, India, Mexico, Spain, United Kingdom and the US.
The companies included in the research were from the manufacturing industry and included a diverse collection of both discrete and process manufacturers.
Labour productivity was rated as the main driver of success among all countries, including India, as factors that affect the success of manufacturers.
Brazil was ranked at top in thinking the need for modern infrastructure with 88 percent followed by India with 82 percent, the US with 66 percent about agreeing about modern infrastructure's importance.
The survey also found that most Indian manufacturers think that absences can get in impacting productivity.
"When asked if absenteeism was not a problem, India at 36 percent had the highest number of respondents that disagreed, suggesting absenteeism to be a larger issue than other countries," it says.
Factors that affect the success of manufacturers, 74.7 percent (the highest) of all respondents agreed that a high level of labour productivity is very or extremely important for achieving manufacturing success.
Emerging nations rated the need for modern infrastructure higher than mature economies and labour productivity topped as the main driver of success among all countries.
While Brazil, Mexico, and Spain scored the highest regarding labour productivity with 82 percent, India scored relatively low with 68 percent.
On shortage of skills required for specialised manufacturing jobs, Germany and the US demonstrated a higher availability of skilled workers, with only 2 and 6 percent, respectively agreeing that there is a shortage.
Brazil and Mexico scored the highest demonstrating a greater lack of specialised manufacturing workers, with 40 and 28 percent agreeing to a shortage followed by India with 18 percent.
August 17th, 2012, 12:55 PM
India Industrial Output Slides in Sign Economy Is Faltering (http://www.businessweek.com/news/2012-08-09/india-industrial-production-falls-for-third-time-in-four-months)
Indian industrial production slid in June for the third time in four months, with output of capital goods plunging the most on record, adding to signs of faltering growth in Asia’s third-largest economy.
Production at factories, utilities and mines declined 1.8 percent from a year earlier, after a revised 2.5 percent rise in May, the Central Statistical Office said in New Delhi today. The median of 27 estimates in a Bloomberg News survey was for a 0.4 percent climb. Capital goods output, an indication of investment in plants and machinery, slid 27.9 percent.
Indian manufacturing has been subdued in recent months as inflation above 7 percent saps domestic demand and Europe’s debt crisis crimps exports. Price pressures from a drop in the rupee and the impact of a weak monsoon on crops forced the central bank to leave interest rates unchanged in July, breaking with a wave of cuts in borrowing costs from China to Brazil to Europe.
“The negative trend coming in between a looming drought- like situation is very, very worrying,” said Brinda Jagirdar, an economist at State Bank of India in Mumbai. “Our problems are compounding. We need quick and decisive policy actions to revive growth, otherwise we’ll see a severe collapse.”
The rupee, which has slumped about 18 percent against the dollar in the past 12 months, strengthened 0.2 percent to 55.295 per dollar at the 5 p.m. close in Mumbai. The BSE India Sensitive Index of stocks pared earlier gains and fell 0.2 percent. The yield on the 8.15 percent government bond due in June 2022 was little changed at 8.14 percent.
Manufacturing fell 3.2 percent in June from a year earlier, today’s data showed. Mining gained 0.6 percent and electricity output rose 8.8 percent. A separate report in China showed that nation’s industrial production advanced 9.2 percent in July from a year earlier, less than analysts had estimated.
The drop in Indian capital goods production in June from a year earlier is the steepest since at least April 2006, according to data compiled by Bloomberg.
Forecasters from Goldman Sachs Group Inc. to Citigroup Inc. this month lowered predictions for Indian economic expansion while raising inflation estimates and scaling back expectations for interest-rate reductions by the Reserve Bank of India.
Goldman cut its growth outlook for the 12 months through March 2013 to 5.7 percent from 6.6 percent and said wholesale prices may climb 7.2 percent, up from an earlier estimate of 6.5 percent. Citigroup said Indian gross domestic product may rise as little as 4.9 percent in 2012-2013 if a drought takes hold. India’s more than 235 million farmers depend on the rains.
The Reserve Bank left the benchmark repurchase rate at 8 percent on July 31, while cutting the amount of deposits lenders must keep in government bonds to spur lending. Headline inflation was 7.25 percent in June, the fastest pace among the world’s largest emerging markets.
Finance Minister Palaniappan Chidambaram, who was appointed last week, has said he intends to take steps to reverse the slowdown in manufacturing. He has also pledged to clarify tax laws and contain the budget deficit as he tries to assuage concern that the nation’s outlook is deteriorating.
India will reassess its fiscal deficit goal for the 12 months that began April 1 after a mid-year review, Chidambaram said today in a written response to questions from lawmakers. Forecasters from Citigroup Inc. to Crisil Ltd., the local unit of Standard & Poor’s, predict the gap will widen from 5.8 percent of GDP in 2011-2012.
Graft scandals, political gridlock over attempts to liberalize the economy and below-average rains have set back Prime Minister Manmohan Singh’s development agenda. Power outages on July 30-31, India’s worst, have underscored gaps in infrastructure as investment moderates.
Slower growth has affected companies such as steelmakers. Production of the alloy by businesses including Tata Steel Ltd. fell 0.5 percent in June from a year earlier after a 4.9 percent gain in May, Commerce Ministry data shows.
Indian GDP rose 5.3 percent in the first quarter from a year earlier, the least since 2003. Standard & Poor’s and Fitch Ratings have warned they may strip the nation of its investment- grade credit rating, citing risks including fiscal and current- account deficits.
Today’s factory output report is disappointing, Montek Singh Ahluwalia, deputy chairman of the Planning Commission, told reporters in New Delhi. The commission may revise its economic growth estimate for the current fiscal year in September, he added.
August 17th, 2012, 12:56 PM
Simba Toys plans to set up 25 stores in India (http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/simba-toys-plans-to-set-up-25-stores-in-india/articleshow/15528873.cms)
MUMBAI: With a view to tap the enormous potential in the over Rs 1,700 crore Indian toy industry, Germany's Simba Dickie group plans to set up 25 franchise stores across the country, a top company official said.
"The Indian toy market is evolving and we want to tap this huge potential. We plan to set up 25 franchise stores across the country over the next 6 months," company's chief executive officer (India, Middle East and North Africa) Ben Nabert told PTI here.
The company, which entered the Indian market in September 2009, has already launched two global franchise stores in Bangalore and Mumbai to sell toys of their brand.
"Simba will add two more stores in Delhi and one in Bangalore shortly," he said.
The company has appointed Exelixi Management Private Ltd as its master franchisee for retail expansion plans.
Simba also plans to set up a manufacturing facility in the country, he said.
"In order to establish ourselves firmly in the country, we plan to set up a manufacturing facility here. However, it will not be our own factory but we will tie-up with a local partner for the same. We are still in the process of negotiations but we expect to set it up in the next six months," Nabert said.
The facility will initially be manufacturing 'board games', he said.
However, Nabert refused to divulge any investment details.
Simba also plans to get local license for some of the games including the 'Spider-Man'. "We are watching for the right license," he said.
The group, which makes over 3,500 SKUs ( stock-keeping unit) globally, will be designing more Indian brands, he added.
August 17th, 2012, 03:47 PM
Unfavourable levies hit Indian manufacturing: FICCI (http://www.hindustantimes.com/business-news/Markets/Unfavourable-levies-hit-Indian-manufacturing-FICCI/Article1-915006.aspx)
Several industrial sectors like tyres, electronic hardware, electrical equipment and medical instruments are suffering due to an unfavourable duty structure which makes Indian manufacturing uncompetitive, a FICCI survey revealed.
According to a survey by the industrial lobby on
"Inverted Duty Structure in Indian Manufacturing Sector", imported raw material users in a range of manufacturing industry segments are in a spot due to inverted customs duty structure that makes them uncompetitive against cheaper finished product imports and discourages domestic value addition.
Under the inverted duty structure, import duty on finished products are lower than on parts or components used in manufacturing of the parts.
The FICCI survey reveals that manufacturing segments that are suffering due to inverted duty structure are: pumps for liquids, tyres, electronic hardware, electrical equipment, medical instrument, aluminium and articles, and technical textiles.
The findings of the survey assume importance as India is now a part of a number of regional or bilateral Free Trade Agreements (FTA) with many countries and groupings, including Japan, the ASEAN and South Korea. These FTAs aim to provide equal opportunity to Indian players in terms of market access.
However, the higher import duty on raw materials results in an inverted duty structure that makes certain Indian manufactured goods (those dependent on imported raw materials) uncompetitive in both domestic and export markets, the FICCI survey said.
In addition to the duty anomaly created by FTAs, the survey notes that many times importers derive the benefit of lower duty or zero duty, due to some special exemptions such as nil duty on project imports and certain defence purchases. However, domestic manufacturers are not eligible for any matching concessions to nullify the impact of such duty anomalies.
The FICCI survey recommended that domestic manufacturers should be provided a level playing field vis-à-vis imports under FTAs and various duty concession schemes.
August 17th, 2012, 07:29 PM
Bosch Packaging Technology India opens new manufacturing facility (http://www.packworld.com/bosch-packaging-technology-india-opens-new-manufacturing-facility)
Bosch Packaging Technology India’s new manufacturing facility at Verna, Goa has been built on 33,000 square meters land, with an investment of Rs 34 crores (about 5 million euro).
The new plant will fulfill capacity expansion and meet the increasing demand of India’s fast growing packaging market as well as international markets. With the state-of-the-art technology, the new plant will aim at increased localization of new packaging machine production and make world class German technology affordable and available to the Indian market.
The opening was presided over by Shri Manahor Parrikar, the Honorable Chief Minister of Goa and Shri Mahadev Naik, the Honorable Minister of Industries, Goa in the presence of Mr. V K Viswanathan, Managing Director of Bosch Ltd. and President, Bosch Group in India and Mr. Friedbert Klefenz, President, Bosch Packaging Technology, Germany.
Speaking on the development, Mr. V K Viswanathan said, "Bosch sees India and the South Asia region as a high potential market for Packaging Technology particularly in the Pharmaceuticals and Foods segments. This state-of-the-art manufacturing facility in Goa will meet the growing needs of the region through appropriate products and packaging solutions. The new facility will also generate good growth and employment opportunities for the people of Goa.”
Setting up of the plant is a significant milestone for Bosch Packaging Technology India that commenced its operations in Verna from a leased location in 2007.
From a modest turnover of Rs 2.5 crores (about 400,000 euro) in the year 2000, the Bosch Packaging Technology, a division of Bosch Limited, has grown with a 33.6 percent CAGR and registered sales of Rs 60.5 crores (about 10 million euro) in 2011 and is poised to reach the landmark figure of Rs 100 crores (about 15 million euro) in the next few years.
Today, Bosch Packaging Technology in India designs, develops, manufactures and markets form, fill and seal machines for flexible bag packaging, flow wrapping machines for confectionery and food applications as well as filling and closing machines for liquid pharmaceuticals. The subsidiary in India brings the global expertise to the Indian market. Till date, Bosch Packaging Technology India has sold over 1200 packaging machines to leading names in the food, confectionery and pharmaceutical industries in India and international markets.
Bosch Packaging Technology India at present employs directly 130 associates; and with this new facility, it is expected to increase the number by 30 to about 160 within the next three years. Additionally, it provides many indirect employment opportunities. The current production capacity of the plant is 200 machines per year which is expected to double in three years.
Commenting on the development at the inaugurating ceremony Mr. Friedbert Klefenz said: “This new facility will bring our new global offerings to India. It will also contribute greatly in pursuing our future plans and consolidating our leadership position in the Indian and international markets. Hence, this is not just a milestone for the Packaging Technology division of Bosch in India, but a global one, too.”
“We will strive to fulfill growing market needs with the best-in-the-industry solutions and strengthen our existing leadership position,“ said Mr. Ashok Gourish, General Manager, Bosch Packaging Technology, India.
August 17th, 2012, 07:42 PM
GlaxoSmithKline India unit to shut factory (http://www.marketwatch.com/story/glaxosmithkline-india-unit-to-shut-factory-2012-08-17?reflink=MW_news_stmp)
BANGALORE--GlaxoSmithKline Pharmaceuticals Ltd. Friday said operations at its factory at Thane in western India have ceased after all workers there accepted a voluntary retirement scheme offered by the company.
The relevant applications for closure of the factory are being filed, the Indian unit of GlaxoSmithKline PLC informed stock exchanges. The company didn't give any other details.
GlaxoSmithKline Pharmaceuticals has two manufacturing units in India, located at Thane and Nashik, also in western India. It also has a clinical development centre in Bangalore.
The Thane factory manufactured bulk drugs and active pharmaceutical ingredients, information available of the company's website showed. It makes finished forms of drugs at Nashik.
August 18th, 2012, 02:15 PM
CSE alleges US of ruining Indian domestic solar photo-voltaic manufacturing industry (http://timesofindia.indiatimes.com/city/bangalore/CSE-alleges-US-of-ruining-Indian-domestic-solar-photo-voltaic-manufacturing-industry/articleshow/15536476.cms)
BANGALORE: The United States is allegedly using the climate 'fast start financing' to its pervert advantage for ruining the Indian domestic solar photo-voltaic (PV) manufacturing industry, if a statement made by the New Delhi based Centre for Science and Environment (CSE) is to be believed. Currently, 80 per cent of the Indian manufacturing capacity is in a state of forced closure and debt restructuring with no orders coming to them, while the US manufacturers are getting orders from Indian solar power developers, said CSE's researchers.
As the nation's ambitious Solar Mission's first phase draws to a close next year, CSE is analysing the state of renewable energy resources and infrastructure in India and the country's preparedness to meet the Mission goals.
"Fast start financing is a US $30 billion fund set up under the United Nations Framework Convention on Climate Change. The fund, adopted at the Copenhagen climate meeting in 2009, is supposed to help developing countries deal with climate change impacts and limit greenhouse gas emissions," said Chandra Bhushan, CSE deputy director general.
The Government of India has been aggressively promoting solar power projects since 2010 as part the National Action Plan on climate change. Within three years, from 2009-12, India has gone from an almost zero to close to 1,000 MW of solar installations in the country.
August 18th, 2012, 06:43 PM
Manufacturer Expands Operations Globally (http://www.plantengineering.com/single-article/manufacturer-expands-operations-globally/860288d18f815dff1311a801c34d5bf5.html)
Tim Shuttleworth, President And CEO Of Eriez Mfg. Co., Talks About The Opportunities And Barriers To The Company's Growth.
Erie, Pa.-based Eriez Mfg. Co. is a global manufacturer of magnetic, vibration, and inspection solutions for manufacturers. It has embarked on a global expansion of its manufacturing operations, including a new facility in Erie, and plans for others in Canada, China, and India. Tim Shuttleworth, Eriez president and CEO, talked about the opportunities and barriers to that growth.
PE: What specifically is driving Eriez's growth in 2012? What do you see as positive about this market right now?
Shuttleworth: The company’s broad product offerings for many diverse industries contribute to Eriez’s unprecedented sales growth. When one market is soft, we have the ability to focus on another market that is thriving. For example, right now sales of our recycling industry equipment are strong and steady, due in part to the considerable investment we’ve made in the past several years to new product development, personnel, our sales organization, and aggressive marketing efforts.
Innovation has been a part of Eriez from the very beginning. We’re not innovating just to call a product new; we’re delivering serious improvements that will add to customers’ bottom lines. Like our customers, we’re investing to stay ahead of the curve. You should also know that there is more concern for product and personnel safety, productivity, and ROI than we’ve ever experienced before in the industries we serve. Our products match customers’ needs.
PE: You're growing not only in the U.S., but also in Canada, India, and China. What are the opportunities for growth on a global basis for a U.S. manufacturer?
Shuttleworth: Customers are assured of consistent product quality and fast response from whichever plant is closest to them. Eriez sales engineers and service teams throughout the world reflect the same customer-oriented philosophy. There are many international growth opportunities for the industries Eriez serves.
PE: What are the barriers to growth?
Shuttleworth: The barriers to international growth come from a more crowded playing field. To take the example of the recycling industry, Eriez has 20% to 25% of the U.S. scrap/recycling market. Our international market share is less. Europe, for example, is more competitive than the U.S. as far as the number of companies making magnetic and eddy current separators—there are double or triple as many companies making those products. To stay competitive, we must be constantly aware of what other companies are doing to ensure we beat or meet them in terms of price and performance.
PE: How are you recruiting, training, and retaining your skilled workers? What are the challenges in this process, and what can you do to make it easier?
Shuttleworth: Finding the right person to fill any open position in manufacturing has never been an easy task, especially considering our specific needs and high expectations. It’s a challenge to keep production moving while trying to find, and train, qualified individuals. We seek out only the best (people) and then offer further training to familiarize them with Eriez’s processes and standards.
To retain our employees, we offer fair wages, excellent benefits, and many employee education, wellness, and incentive programs. We are fortunate to have very low turnover. We work closely with the local high schools, trade schools, and colleges to pinpoint the talent we need. However, we are not afraid to look outside our state for special skills if we cannot find them in Pennsylvania.
August 18th, 2012, 07:08 PM
India urges state banks to increase lending for consumer durables (http://in.reuters.com/article/2012/08/18/india-banks-idINL4E8JI0A420120818)
India's finance minister urged state-run banks to increase lending for consumer durables on Saturday, saying this would help boost the manufacturing sector which has been caught up in the slowdown of the economy.
"Consumers must be encouraged to buy consumer durables," Palaniappan Chidambaram said after a meeting with chairmen of public-sector banks. "I think the point has been well taken by the banks."
Industrial output in Asia's third largest economy contracted for the third time in four months in June, dragged down by a deep dip in manufacturing, as the economy faces its worst slowdown in almost a decade.
Manufacturing, which constitutes about 76 percent of industrial production, shrank an annual 3.2 percent in June from a year earlier.
"We advised the banks to focus on sectors which deserve credit and which are crying for credit," Chidambaram said. "I think it is important that consumption of durables is supported to a great extent."
Government-owned lenders account for 70 percent of the market in India but their lending decisions are not always driven by commercial considerations.
Most banks have either maintained or reduced their base lending rates only marginally despite a steeper-than-expected 50 basis point repo rate cut in April.
Chidambaram, who took up his third stint as finance minister on July 31, has promised to revive the economic growth by taking measures in collaboration with the central bank.
Bankers said the finance minister advised them to lower interest rates on consumer durables that will help domestic demand pick up and investment in the manufacturing sector.
"Yes, he advised the banks to consider reducing interest rates for consumer durables," Pratip Chaudhuri, CMD of State Bank of India, India's biggest lender, told reporters.
Chaudhuri said his bank had already reduced interest rates from 11.75 percent to 10.75 percent on some consumer durables.
India's interest rates are among the highest in major economies and the slowdown has renewed calls for the Reserve Bank of India (RBI) to lower them at a Sept. 17 policy meeting.
Car sales in India rose in an annual 6.7 percent in July, below the industry estimates as high interest rates and a tax rise stunted demand.
"Once we get the investment engine started, I think many of our problems can be solved," the finance minister said.
August 18th, 2012, 07:09 PM
Trading down on sombre macro data (http://www.business-standard.com/india/news/trading-downsombre-macro-data/483634/)
The markets continued to trade in a narrow range, with weak macros like the dismal Index of Industrial Production data and lower July inflation having dashed hopes of a cut in key policy rates by the central bank. India's industrial production contracted 1.8 per cent in June, driven down by a slump in manufacturing, along with wholesale price index-based inflation easing to a 32-month low. And, weak Japanese economic data tempered European investors' optimism about ECB plans to tackle the Euro zone crisis. Two of the four fund managers of Smart Portfolios Season 4 remained active over August 9-16
Fund manager, Emkay
Shah was inactive during the period under review. He is sceptical about the current range-bound market, as the weak macro economic data points to a slide in the markets quite significantly from the current levels. Along with this, there is not much hope from the Reserve Bank of India on interest rate cuts, as food inflation is still high. His top holding includes ICICI Bank, Havells India, Mahindra & Mahindra, Bank of Baroda and Sundaram Finance. Shah's net worth is valued at Rs 9.44 lakh, down 5.6 per cent.
VP (equity strategies),Motilal Oswal Securities
Parikh carried out several transactions during the period. He added several scrips like Coal India, BHEL, Emami, Allahabad Bank, Oberoi Realty, Gujarat Mineral Development Corporation, Power Finance Corporation, State Bank of India and NIIT Technologies to his portfolio. On the other hand, he booked profits in Emami, Tata Motors and Eicher Motors.
He believes lower inflation and negative IIP growth numbers could increase the probability of lowering interest rates. He sees the current range-bound markets as an indication of the expectation of reforms. On his investments in banking, he says the market is factoring in more concern on the asset quality of public sector banks than warranted, leading to a few banking scrips being available at low valuations. His current top holdings include Engineers India, JSW Energy, Oberoi Realty, Hindalco Industries and Allahabad Bank. Parikhs's net worth is Rs 10.29 lakh, up 3.4 per cent.
Fund Manager (PMS), Centrum Wealth
Mittal was active during the week. He bought Axis Bank, Karnataka Bank, Cairn India and Wyeth. Meanwhile, he booked profits in HDFC Bank, Bombay Burmah Trading Corporation and Unichem Laboratories, as he believes further upside is capped in the intermediate term for these stocks.
Mittal believes that with monsoon recovering RBI may consider reducing the interest rates. Also with markets moving ahead of the fundamental developments, he expects the prospective reversal in interest rates and probable affirmative actions by union government would lend credence to the current strength of the market. Government inaction would be the only reason for reversal in the current strength. His top holdings include Balmer Lawrie & Company, Karur Vysya Bank, Tide Water Oil Co (I), Cairn India and Cairn India. Mittal's net worth is Rs 10.72 lakh, up 7.5 per cent.
Head (technical and derivatives research),Geojit BNP Paribas Financial Services
There were no transactions for the period under review. Mathews believes if the government takes necessary policy reforms, then the macros can change dramatically in the near term. However, the twin problems like high crude oil prices and deficit rainfall remain a matter of concern. He is hopeful that RBI might reduce interest rates by 25-50 basis points, as high interest rates are a major concern for financial market participants, along with companies facing the heat of high borrowing costs.
His top holdings, as of now, include CRISIL, Timken India, Tata Coffee, CMC and MindTree. Mathews' net worth totals Rs 9.32 lakh, down 6.8 per cent.
September 17th, 2012, 07:58 AM
V-Tech hydraulic (http://www.vtechhydraulic.com), the company which believes in “Making Impossible- Possible”, established in the year 2001 and has grown in leaps since its incorporation. The company provides hydraulic solution to various industries with cement, construction, shipping, steel, power, petrochemical, heavy engineering, offshore and pharma.
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September 17th, 2012, 08:12 AM
A valve is a device, which directs and controls the flow of fluid (slurries, fluidized solids, liquids, and gases) by closing, opening or partially blocking different passageways. Technically, the Valves are known as a pipe fitting but often discussed in separate class.
In open Valve, fluid flows from higher to lower pressure. Very old and simple valve are freely hinged flap that falls to block fluid (liquid or gas) flow only in one path.
Microfinish Group is private organization, which has specialized in natural & process resource industries, and automation of energy and Valves. The main vision of Microfinish is to provide superb services to the customers, provide top quality valves, and finally meet the special time limit of the customer. The company was founded in 1971, and initially it was engaged in manufacturing of knife edge gate valves, globe valves for clonicle service, ball valves, gate globe check valves, and bellow sealed globe valves. Then, we opened new branch called Microfinish Valves INC (http://www.microfinishvalvesinc.com) at Texas in 2010 July, which is especially dedicated to industrial valves. We have been known for providing excellent Technical Support, Sales etc to their main regional markets. In recent times outsourcing of design and manufacturing has become company’s everyday activities and they believe to provide good quality of valves to the customers. We have a completely owned secondary of Microfinish Valves Pvt. Ltd. in Hubli, Karnataka, India.
We have well experienced engineers, who have been working in this industry from past 40 years, and they have done specialization in designing industrial valves.
Presently, we are delivering five distinctive valves such as Trunnion-Mounted Ball Valves, Bellows-Sealed Globe Valves, Floating Ball Valves, Knife Edge Gate Valves, and Globe Valve types for normal Chlorine Service in the present marketplace.
Trunnion Mounted Valves (http://microfinishvalvesinc.com/trunnion-mounted-ball-valves.html) includes few key features like dual sealing at body joints, bleed function and dual block, trunnion supported ball, and cavity self-relief. These valves have been marketed in both metal seats and soft seats and are also available in the market either in crygenic service or high temperature.
Floating Ball Valves has seats, which are not self relieving and these are normally seat supported. In self relieving seat best designed are available and these seats are available in the market in both metal and soft seats. We also develop special valves that depend on customer requirements on the bases of customer requirements we design and develop special valves. For gasoline stations, we provide high frequency ball vales along with low fugitive emissions and temperature would be up to 650 °C. For sodium services, we are delivering Y-type Bellow Sealed Valves up to 560 °C temperature. For Eurochlor standards, we are delivering Globe Valves for Chlorine Service.
Knife Edge Gate Valves (http://microfinishvalvesinc.com/product-pages/knife-edge-gate-valve.html) are different in comparison to other valves in the market, as these valves have particular design. These valves are suitable for slurries, paper pulp, isolation for pulp, fibrous, & sludge applications. These valves are available in both metal and soft seats in market and their size varies from 2" to 30". If anyone is interested to contact us please visit our website, and let us know your demands and requirements.
September 30th, 2012, 04:11 PM
10-year plan for electrical equipment manufacturing (http://www.thehindubusinessline.com/industry-and-economy/article3945901.ece?ref=wl_opinion)
The Heavy Industries Department will come out with a 10-year vision plan for electrical equipment manufacturing industry in a couple of months, said Ambuj Sharma, Joint Secretary.
Focus will be on technology upgrade, industry competitiveness, skill development, conversion of latent demand to actual demand and exports. This would be similar to the plan rolled out for the auto industry in 2006, he said.
Sharma was addressing the annual convention of the Indian Electrical & Electronics Manufacturers' Association, here on Friday.
On technology, he said some industries as such were on par or ahead, but a major portion, especially in the SME segment, was lagging behind. Here, research and development played a key role. The percentage of revenue allocation in India for R&D was only about one per cent against the international average of five to six per cent, he said.
The Government was also keen on clearing the roadblocks that hampered industries from being competitive. The Planning Commission said lack of infrastructure, financial cost and low productivity were major dampeners to the competitiveness of industries.
Efforts were on to equip technical manpower recruited by the industry with adequate skill sets at the collegiate level itself so that time and money were not wasted in training them again by the industry.
The Government was also keen on ensuring that all industries across businesses generate 30 per cent of their revenue through exports so that a balance could be struck against imports, he added.
September 30th, 2012, 07:21 PM
After the Japanese, the Taiwanese are considering setting up a special manufacturing enclave in one of the industrial areas of Rajasthan’s Alwar district. A visiting Taiwanese business delegation has shown interest in the Neemrana Industrial Area for creating an electronics manufacturing hub.
The delegation, led by Terry Lee, Deputy Director-General in the Department of Investment Services of the Taiwan Ministry of Economic Affairs, responded positively after a day-long visit to Neemrana. It also visited the Japanese zone in the area and interacted with representatives of the companies there.
Mr. Lee, accompanied by 30 members of the Taiwan Electrical & Electronic Manufacturers’ Association (TEEMA) and others, said a similar experiment by Taiwanese companies in the Philippines had proved successful. These electronic companies could explore the possibility of setting up a manufacturing base here, particularly in the area of solar power equipment manufacturing.
“The Taiwanese government is interested in promoting clean energy and Rajasthan has the ideal climate for production of this energy of the future,” said Mr. Lee.
He expressed satisfaction over the facilities available in the industrial area and in the prevailing investment climate in the State. TEEMA has over 3,700 members. The delegates included those from the textiles, banking and rubber industries.
TEEMA Director Francis Tsai said the Taiwanese industry was looking towards India favourably for investment. He said India has many advantages because of its huge market and the investment climate, adding that TEEMA will conduct a formal survey of Neemrana Industrial Area and it’s potential.
Rajasthan State Industrial Development & Investment Corporation (RIICO) managing director Rajendra Bhanawat welcomed the idea of a special enclave of Taiwanese companies and said the State might consider extending special incentives to the Taiwanese. Neemrana’s Japanese zone, which is under expansion, is a big success story in Rajasthan, he pointed out.
Mr. Bhanawat told the delegation that the Neemrana-Bhiwadi-Khuskhera zone was the first node designated in the Delhi-Mumbai Industrial Corridor for growth. This was the right time to invest in this region as the skyline of the area would be totally different in five years, he added.
The State is also working towards establishing direct road connectivity between Bhiwadi, another major industrial area, and Neemrana. Once the direct link is established, it will be beneficial for industries in the entire zone.
Taiwanese manufacturing sector may have a clone in Karnataka (http://www.business-standard.com/india/news/taiwanese-manufacturing-sector-may-haveclone-in-karnataka/188367/on)
September 30th, 2012, 08:34 PM
Minister of State of Commerce and Industry Jyotiraditya M. Scindia on Wednesday told Rajya Sabha that eight Investment Regions under the Delhi Mumbai Industrial Corridor (DMIC) have been announced as National Investment and Manufacturing Zones ( NIMZs).
Ahmedabad-Dholera investment Region, Gujarat
Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra
Manesar-Bawal investment Region Haryana
Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan
Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh
Dadri-Noida-Ghaziabad Investment Region, Uttar Pradesh
Dighi-Port Industrial Area, Maharashtra and
Jodhpur-Pali-Marwar region in Rajasthan
One NIMZ, outside the DMIC region, at Nagpur in Maharashtra has also been given in principle approval.
"The policy envisaged leveraging the existing schemes of the Government of India and introducing new mechanisms to promote green technologies. These include setting up of a Technology Acquisition and Development Fund (TADF) to support the creation of a patent pool; domestic manufacturing of equipments inter-alia for controlling pollution and reducing energy consumption, environmental audit and green buildings," Scindia said.
Relief from Capital Gains Tax will encourage investment of the income generated from the disposal of unproductive assets like residential properties into manufacturing activity, he said.
September 30th, 2012, 08:35 PM
Colombo, August 05, 2012
Against the backdrop of sharp decline in manufacturing growth, India will be setting up three more mega industrial and investment zones as part of its endeavour to push the contribution of the sector up to 25 % of GDP by 2020. Commerce and industry minister Anand Sharma said the notification for setting up the National Manufacturing and Investment Zones (NMIZ) is expected to be issued by this month end.
"We are seriously considering three National Manufacturing and Investment Zones (NMIZ) of which one will be in Andhra Pradesh and two in Karnataka," said Sharma who is on a three-day visit here.
The decision, by which the total number of NMIZ will go up to 12, comes against the backdrop of sharp decline in manufacturing growth to 0.3 % during the January-March quarter from 7.3 % in the corresponding period of 2010-11.
Sharma said there are four proposals pending with the government, including that from Kerala but they are seeking special dispensation in land area requirement of a minimum 5,000 hectares.
The government has been taking several steps to increase the share of the manufacturing sector in the GDP to at least 25 % by 2020 from the present 16 %.
In this regard, a new National Manufacturing Policy (NMP) was announced recently, which provides for NMIZs. NMIZs will be mega industrial zones with world class supporting infrastructure. The government is offering a host of incentives like exemption from capital gains tax and a liberalised labour and environment norms to promote these zones. The NMP proposes to create 100 million jobs by 2020.
Number of NMIZ are 8 in DMIC, 1 in Nagpur, 2 in Karnataka and 1 in Andhra Pradesh.
December 4th, 2012, 06:31 PM
Tata Hitachi plans to use Bengal facility as export hub (http://www.thehindubusinessline.com/news/states/tata-hitachi-plans-to-use-bengal-facility-as-export-hub/article4163903.ece)
HARAGPUR, DEC 4: The Rs 3,000-crore Tata Hitachi Construction Machinery Company Ltd (formerly Telcon) plans to use its West Bengal facility for export of low-cost products.
The facility is currently running at one-third of its installed capacity, owing to economic slow down.
The Bangalore-based joint venture between Hitachi Construction Machinery (60 per cent) and Tata Motors (40 per cent), currently supplies construction equipment to developing markets in West Asia and Africa.
“The Kharagpur plant will be the export hub for the neighbouring countries like Bangladesh, Nepal and Sri Lanka and other developing regions like Africa and West Asia,” Mitsuhiro Tabei, Vice-President and Executive Officer at Hitachi Construction, told journalists.
The company has a capacity to manufacture 15,000 equipment units a year from its three plants at Dharwad in Karnataka, Jamshedpur in Jharkhand, and Kharagpur in West Bengal.
Approximately two per cent (300 units) of production is exported. According to Rana Sinha, Managing Director of Tata Hitachi, exports are expected to increase by 15 per cent over the next three to four years.
Spread over 250 acres, the company’s Kharagpur plant has a capacity to make 6,000 units including excavators, wheel loaders and dump trucks. However, about 35 per cent of its capacity is being utilised.
“The Kharagpur unit is operating at 35 per cent of its installed capacity owing to the overall slowdown in the construction equipment market in the country. But the idea is to produce machines which are low-cost and suited for the developing nations around the world,” Sinha said.
Meanwhile, the company proposes to build a township on 250 acres near the plant to provide better facilities to its employees.
December 5th, 2012, 08:53 PM
Tata Hitachi plans to use Bengal facility as export hub (http://www.thehindubusinessline.com/news/states/tata-hitachi-plans-to-use-bengal-facility-as-export-hub/article4163903.ece)
HARAGPUR, DEC 4: The Rs 3,000-crore Tata Hitachi Construction Machinery Company Ltd (formerly Telcon) plans to use its West Bengal facility for export of low-cost products.
The facility is currently running at one-third of its installed capacity, owing to economic slow down.
The Bangalore-based joint venture between Hitachi Construction Machinery (60 per cent) and Tata Motors (40 per cent), currently supplies construction equipment to developing markets in West Asia and Africa.
“The Kharagpur plant will be the export hub for the neighbouring countries like Bangladesh, Nepal and Sri Lanka and other developing regions like Africa and West Asia,” Mitsuhiro Tabei, Vice-President and Executive Officer at Hitachi Construction, told journalists.
The company has a capacity to manufacture 15,000 equipment units a year from its three plants at Dharwad in Karnataka, Jamshedpur in Jharkhand, and Kharagpur in West Bengal.
Approximately two per cent (300 units) of production is exported. According to Rana Sinha, Managing Director of Tata Hitachi, exports are expected to increase by 15 per cent over the next three to four years.
Spread over 250 acres, the company’s Kharagpur plant has a capacity to make 6,000 units including excavators, wheel loaders and dump trucks. However, about 35 per cent of its capacity is being utilised.
“The Kharagpur unit is operating at 35 per cent of its installed capacity owing to the overall slowdown in the construction equipment market in the country. But the idea is to produce machines which are low-cost and suited for the developing nations around the world,” Sinha said.
Meanwhile, the company proposes to build a township on 250 acres near the plant to provide better facilities to its employees.
December 11th, 2012, 01:11 AM
This could become the second instance, after the eviction of GMR Infrastructure from Maldives, where Indian companies suffer high handedness of India’s tiny neighbours with the government remaining a silent spectator.
Last month, Sri Lanka suddenly increased duties on SUV’s and commercial vehicles after more than doubling them for cars earlier in the year. If the island nation remains unchecked, this could spell the death of Indian automobile exports to Sri Lanka.
Not only were duties increased exorbitantly for Indian imports, the Sri Lankan government has apparently simultaneously reduced duties for vehicles coming from other Asian markets such as Japan.
Not only were duties increased exorbitantly for Indian imports, the Sri Lankan government has apparently simultaneously reduced duties for vehicles coming from other Asian markets such as Japan. Reuters
Unable to take the duty blow, exports of cars from India have already reduced by 90 percent where those of two-wheelers are down 60-70 percent. Sri Lanka is one of the largest export markets for Indian cars, two-wheelers, trucks and buses.
One in eight vehicles manufactured in India and exported found their way to this market last fiscal, with Sri Lankan exports netting $800 million to Indian automobile manufacturers.
A senior official of the Society of Indian Automobile Manufacturers (SIAM) said today that Sri Lanka has doubled duties on almost all vehicles categories.
A story in Sri Lankan daily The Sunday Times speaks of prohibitive duties edging out Indian vehicles “while exemptions to those coming from Japan will give them an added advantage in the market”.
This story also speaks of the Sri Lankan government clearing a Chinese investor’s application to set up a car assembly operation at two locations in the country for $20 million.
The SIAM official quoted above said if these reports are true, this could prove to be a double whammy for Indian automobile industry since as per an earlier SAFTA agreement (South Asian Free Trade Agreement) India has provided zero-duty access to products from SAFTA countries (including Sri Lanka) but does not enjoy the same privilege in these countries.
“This effectively means the Chinese company setting up a plant in Sri Lanka can export automobiles to India at zero import duty. If that happens, we will be hit from all sides,” said this SIAM official.
The Sunday Times story quoted an anonymous customs official saying “a technicality placed imports of cars from Japan at an advantage. While 80 percent of the cars imported into Sri Lanka are from India and under 1000cc engine capacity, no such vehicles are brought from Japan”.
Another story in Sri Lankan newspaper Business Times points out that the government there has “controversially reduced duties on racing cars while increase excise duty on small cars with engine capacity of less than 1000cc.
The Sunday Times story also quoted a car importer as saying the Maruti Alto would become more expensive by at least Rs 250,000 after the excise increases.
Other importers said the price of Indian trucks would increase by more than Rs 10 lakh. Till end-October, more than 5,000 cars were lying with dealers in Sri Lanka, waiting to be re-exported back to India because of exorbitant duties. The SIAM official said his association was in dialogue with the commerce ministry to sort out this excise issue.
But just like in the case of Maldives seizing their airport from GMR’s control, perhaps in this case too India may finally remain a silent spectator.
December 14th, 2012, 08:27 AM
India operations to be $10 billion annual business by 2018: Panasonic (http://economictimes.indiatimes.com/news/news-by-industry/cons-products/electronics/india-operations-to-be-10-billion-annual-business-by-2018-panasonic/articleshow/17586592.cms)
JHAJJAR: Japanese electronics goods major Panasonic today said the Indian operations will become its second largest in Asia Pacific after China with an annual revenue of USD 10 billion (over Rs 50,000 crore) by 2018.
The company's Indian subsidiary, which hopes to have a turnover of Rs 10,000 cr in this fiscal, is aiming to be the number one in the region by 2030 from its current ranking of below 10th position.
To achieve its target, the company will set up more production facilities in India as it looks to make the country a manufacturing hub. It today inaugurated its sixth plant in the country here.
The Japanese electronic products giant plans to hire over 3,500 people by 2018 at its newly inaugurated plant set up here with USD 200 million investment (nearly Rs 900 crore).
"Indian market is very important for us. Demand here is growing. As per our target, India will be the second largest market in Asia Pacific after China," Panasonic Asia Pacific Managing Director Yorihisa Shiokawa told reporters here.
According to the company's estimates, India is estimated to contribute USD 10 billion revenue by 2018.
He, however, did not share how much is China's share in Panasonic's global income at present.
Shiokawa said the company globally is focussing in four segments - residential, non residential, personal and movers. "India is doing well in all the segments... We will have more manufacturing facilities here in future," he said without sharing details.
The company's Indian operations also aims to increase its revenue by over two-fold to Rs 25,000 crore by 2015, it said.
While inaugurating the 76-acre plant here, Panasonic India said it will "provide employment to 1,500 people in the first phase and over 2,000 in the second by 2018." Currently, the firm has a workforce of about 12,650 people in India.
The construction of the plant started in April 2011 and the capacity is to be expanded gradually. An investment of USD 200 million from 2010 to 2015 has been earmarked for this unit, the company said in a release.
The facility that was inaugurated today by the Chief Minister of Haryana, Bhupinder Singh Hooda, has an initial capacity to produce 10 lakh ACs, 4 lakh washing machines and 25,000 welding and cutting machines per annum.
Talking about revenue outlook, the company said it is targetting Rs 25,000 crore turnover by 2015. "Today's opening of this factory will fuel our first priority goal in India of doubling our revenue in 2012-13," Panasonic India President Daizo Ito said.
In 2012-13, the company is expecting a sales revenue of Rs 10,000 crore from its Indian operations.
On the market, the company said: "Panasonic shall focus on making India a manufacturing hub and will export products from India to other markets like Middle East and African region". From the new unit, the company plans to export 5 per cent products by 2013 that will be increased to 20 per cent by 2015.
December 14th, 2012, 08:31 AM
Hitachi, Panasonic to make India base to access Africa, Middle East; plan Rs 5,700-cr investments (http://economictimes.indiatimes.com/news/news-by-industry/cons-products/electronics/hitachi-panasonic-to-make-india-base-to-access-africa-middle-east-plan-rs-5700-cr-investments/articleshow/17605462.cms)
KOLKATA: Hitachi and Panasonic, Japan's two biggest corporations, plan to invest more than Rs 5,700 crore in India as they have identified the country as one of their biggest bets for growth and a base to expand in Africa and Middle East markets.
Hitachi, which held its first board of directors meeting outside Japan in its 102-year history in New Delhi on Thursday, announced Rs 4,700-crore expansion plans that include building 5 manufacturing plants.
Japan's largest industrial power and electronics conglomerate has formulated a 'India business strategy 2015' plan to make the country one of its top markets and targets a three-fold jump in its India revenues to Rs 20,000 crore by 2015-16.
"With its market, human resources and business partnerships, India is an important strategic base for Hitachi," its global president Hiroaki Nakanishi said.
Panasonic too has lined up more than Rs 1,000 crore investment in a new plant at Haryana and targets Rs 20,000-crore revenues by 2014-15, a year earlier than Hitachi.
Yorihisa Shiokawa, Panasonic's managing executive officer and chief of the Asia Pacific, Middle East and African operations, said the firm wants to set up more such plants and become the country's largest appliances maker by 2018.
"Localisation will be the key for Panasonic's growth in India and the main objective has been that the products...should be specially conceptualised and customised for the Indian consumers, keeping the local needs in mind," Shiokawa said.
The development is in line with Japanese electronic companies' increasing dependence on India as one of their highest growth-potential markets at a time when sales in the US and Europe are slowing. In end-August, Sony Corp President and CEO Kazuo Hirai came to India within months of taking charge and announced plans to increase investment in the market and expand sales by more than 30% from last year's $1.1-billion revenue (Rs 5,500 crore) to make India its fifth largest market.
Both Hitachi and Panasonic said they will make India their base to expand their business in Africa and the Middle East.
Hitachi on Thursday named Hitachi India as its regional headquarters, making India a separate management area outside Japan. The other such areas are China, Southeast Asia, Europe, and the Americas.
Hitachi has a wide range of businesses interest in India, including power and industrial systems, components and equipment, air conditioning and television. It recorded Rs 6,700 crore revenue last fiscal.
Both Hitachi and Panasonic said they will pursue growth in India by localising development and production of their businesses and products, and focus on developing Indian talent. Hitachi plans to double the number of its employees in India to 13,000 by 2015, while Panasonic plans to add 3,500 more to its over 12,500 people on the rolls.
Panasonic's Shiokawa said the company is committed to be an Indian company here instead of being a Japanese company operating in India.
He said the company plans to enter into several new product categories such as health, energy-related products and LED lights in India.
Panasonic's big plans for India comes at a time when globally it looks at selling or shutting down several of its factories and assets. The company is staring at a second consecutive year of record loss, with a forecast of around $9.4 billion (Rs 51,200 crore) net loss for the year ending March 2013.
Credit rating agency Moody's last month cut Panasonic's long-term credit rating to one level above junk. Shiokawa, however, said the company is committed with its investment in India. "India has been one of the most important countries and potential growth market for Panasonic. The Indian operations has potential to be ranked amongst the top in the Asia Pacific region in terms of revenue contribution," he said.
Panasonic India last year clocked Rs 5,500-crore sales and targets to almost double it to Rs 10,000 crore this fiscal.
December 15th, 2012, 05:51 PM
Ten national mfg investment zones notified
December 18th, 2012, 02:18 PM
Creating manufacturing jobs is key (http://www.thehindubusinessline.com/industry-and-economy/economy/creating-manufacturing-jobs-is-key-says-raghuram-rajan/article4209719.ece)
India needs to give manufacturing a better chance and abandon age-old concepts that hinder employment and growth, Raghuram Rajan, Chief Economic Advisor to the Finance Ministry, has said.
The country cannot reap the ‘demographic dividend’ unless more jobs are created in the manufacturing sector, Rajan said at a satellite session of the Delhi Economic Conclave here on Monday.
He said the answer to the problem of people not being able to move out of agriculture partly lay in creating more manufacturing jobs.
Besides making the entry and exit of firms easier, India should revisit the issue of local area banks to feed local businesses, he suggested.
POWER SUPPLY, FINANCE
Rajan admitted that steady power supply was required for industry, especially smaller units, and said the Government was focused on improving power availability. Local area banks were much better at meeting the needs of local entrepreneurs, he points out. Often, they did this better than a bank headquartered in Delhi or Mumbai and driven by bureaucratic rules.
Rectifying the shortage of manufacturing jobs was, therefore, very important for equitable and sustainable growth.
“If we don’t have that, the pressure to try and create welfare schemes will increase, simply because too many of our people will just not have the opportunities that they need”, he added.
Highlighting sectoral disparities building up in the economy, Rajan said that while agriculture’s share was declining, that of services had gone up. Manufacturing had remained flat.
“This is not surprising. As countries grow, agriculture declines. What is special about India is that the exit of people from agriculture has not kept pace.
Increasingly, people in agriculture are impoverished relative to those having jobs in industry or service”.
Unlike other countries, where people have migrated from agriculture to other sectors, India has not seen same level of migration, he said.
Sectoral disparities are creating enormous pressure for redistribution of welfare schemes, including more support to agriculture through increased support prices, and so on, Rajan said.
“We managed to move the States together, but perhaps we need to do more on the sectoral side to move people out of agriculture into other areas”
Rajan pointed out that the bulk of jobs were created by large firms or by small firms that grow into larger ones.
“We have a number of large firms, but that is not enough. What we are missing is small firms growing to become large firms”.
Small firms do create jobs, but they also lose jobs, he said, citing the case of the textile industry.
In India, 85 per cent of employment in textile firms is in units with less than eight people.
In China, 85 per cent of the employment in the textile industry is in firms with 50 people and above.
“Small firms are less productive than large ones. That explains why China — after the multi-fibre agreement — gets the lion’s share of world trade in textiles and we are struggling to compete with Bangladesh”, Rajan said.
Instead of the useless NREGA program that doles out money, India should have transitioned its rural population to manufacturing jobs. There is a real need for an alternate to China in manufacturing. Incentives for this sector would pay rich dividends. There is lot more these corrupt politicians and babus ought to do. I see crumbling city roads. In Bluru, for instance, there is no road without potholes, dug up trenches, sidewalks in shambles, open storm water channels clogged with filth and debry, ideal breeding ground for mosquitoes. Garbage strewn all over. WTF are the city administrators doing. They have their own enclaves like Sadashiva Nagar which is kept immaculate. The rest is "don't care". Numerous villages are similar. Why can't a national program be initiated (I think Dr. Kalam called it PURA) to fix the villages. Give them decent tarred roads, water supply, electricity and modern day housing in the village. This is a fraction of the money spent compared to doles in NREGA.
The amount of corruption money in circulation is mind boggling. Just a recent mine baron was locked up in prison. The amount of money 10s of billions of dollars (1.5 lakh crore!). The other politicians are similar rascals who given their short tenure amass mind boggling sums. The extravagant lives they lead is shocking to say the least. These buggers dabble in huge sums of illegal wealth and no wonder there is little left to fix cities, towns, villages. India is sliding down the hole due to corruption. The quicker this is stopped the better.
January 10th, 2013, 09:49 PM
India opens applications to its $4 bn incentives for IT manufacturing (http://economictimes.indiatimes.com/tech/ites/india-opens-applications-to-its-4-bn-incentives-for-it-manufacturing/articleshow/17972764.cms)
NEW DELHI: India has opened the application period to lure companies with $4 billion worth of incentives for setting up units to manufacture computer chips, electronics, solar photo-voltaic cells, and telecom equipment in the country.
The package termed as Modified Special Incentive Package Scheme ( M-SIPS) is aimed to kick start a manufacturing ecosystem in India, which imports over 90% of the electronics used by its citizens.
The two year application period for the scheme starting January 2013 will end in May 2015. As per the final scheme, the Department of IT and Electronics will offer a subsidy of 20% on capital expenditure incurred in setting up such units within Special Economic Zones (SEZs). The subsidy will be hiked to 25% if units are set up outside SEZs. The incentives can be availed by companies such as Dell, HP, Nokia, LG and Samsung who are already manufacturing in the country.
But the scheme is primarily aimed at inviting companies interested in setting up semiconductor wafer fabrication units, which involves investment of over $2 billion per fab. "Currently India is handicapped by the absence of any commercial fabrication (Fab) as the earlier attempt to attract fab investments in 2007-08 proved futile. The absence of local fabs, magnifies the challenges associated with supply chain, cost of production and time to market for local product manufacturers," says Deepa Doraiswamy, Industry Manager, Electronics & Security Practice, Frost & Sullivan, a US based research and consulting company.
India will reimburse all central taxes and duties for a period of 10 years incurred in setting up or operating semiconductor fabs - an incentive only limited to such units. The government has tried hard to attract billion dollar fabs inside the country, twice in the past, but in vain.
The scheme will be applicable to new and existing units manufacturing telecom equipments, mobile accessories, IT hardware such as laptops, desktops, biometric or indentity devices and medical electronic equipments.
"India needs to have fabs to manage its balance of payments problem in future. Cost of one fabrication unit runs into billions of dollars and you have to build a series of fabs to be effective," Lip Bu Tan, Chairman of $2 bilion Walden International fund told ET recently. Tan has committed $100 million to India, to incentivize startups in design and manufacturing of electronics and semiconductors.
The Union Cabinet last year approved Rs 10,000 crore, as financial support for the development of electronic manufacturing clusters. Another package of Rs 10,000 crore has been approved to promote large scale manufacturing in India.
The capex eligible for incentives includes not only cost incurred on plant, machinery and equipment, tools etc but also expenditure incurred on captive power plant, utilities machines and captive R&D including cost of IPRs, copyrights etc. The government has capped the cost of land and building at 2% of the total project capital expenditure.
The Ministry of IT is also expected to launch a portal next month, so that, all applications can be submitted online. The non- refundable application fee required to be submitted along with the application is about to Rs 1 lakh for projects costing Rs 10,000 crore and above.
India's electronics import bill is expected to cross $400 billion by 2020 even overtaking its oil import bill. The imports may de-stabilise its balance of payments, which has caused the government to kickstart a manufacturing ecosystem in the country. Globally, about $1.7 trillion worth of electronics hardware manufactured every year, of which India contributes only 1.3%.
February 26th, 2013, 07:03 AM
Goa may set up Special Investment Regions (http://www.thehindubusinessline.com/news/states/goa-may-set-up-special-investment-regions/article4452374.ece)
Press Trust of India
Panaji, Feb. 25:
Goa is mulling setting up Special Investment Regions (SIRs) to attract global and domestic investment in the industrial sector, years after the erstwhile Congress Government had abruptly scrapped Special Economic Zones fearing influx of migrants.
The draft investment-cum-industrial policy prepared by the State Government has laid a special thrust on development of SIRs to attract investments in the industrial sector, a senior official in the State Industries Department said on Monday.
The draft policy would be placed in the public domain for suggestions and objections in the next couple of months, he said.
“Special Investment Regions would mean special areas demarcated for development with their own industrial, social and urban infrastructure on par with global standards, to attract global as well as domestic investments,” according to the policy document.
The SIRs will attract large investments, economies of scale and world class infrastructure arrangements, the official said.
The policy also explores the possibility of setting up National Manufacturing and Investment Zone, on the lines of the Union Government, so as to attract investment and provide quality infrastructure and support.
The Congress Government at the helm in Goa earlier had scrapped its SEZ policy, after allocating land for 12 firms in its industrial estate, fearing that going ahead with the policy would have triggered large-scale migration in the State.
The draft industrial policy also emphasises formation of Investment Promotion Board by enacting suitable legislation.
“The mandate of the Board will include identifying the investment requirements of the State, prioritising public investments in specific projects, deciding modalities of funding, ensuring timely clearance of the investment proposals and reviewing the execution of the projects,” proposes the draft document.
According to the official, the Board would act as a facilitator for investment promotion and serve as a single window clearance authority for medium and large scale industries.
February 26th, 2013, 07:06 AM
UP will create enabling policy regime to attract investment: Akhilesh Yadav (http://articles.economictimes.indiatimes.com/2013-01-27/news/36577142_1_policy-regime-akhilesh-yadav-investment-zones)
Jan 27, 2013, 09.33PM IST
The state needs a thriving manufacturing sector which could provide alternative employment and will help in removing regional imbalance, he said.
"Therefore, we will invest in product specific industrial infrastructure and set up national manufacturing investment zones. We plan to add 16,000 MW of power generation over the next five years. We will try to capitalise on our strength in services sector including IT and ITeS," he said.
February 26th, 2013, 07:08 AM
Govt eyes sovereign funds for NIMZs (http://www.hindustantimes.com/business-news/WorldEconomy/Govt-eyes-sovereign-funds-for-NIMZs/Article1-1017365.aspx)
The UPA government, which is making all attempts to revive the growth story and boost overall investments, is looking to invite sovereign wealth funds of other countries to invest and promote the proposed National Investment Manufacturing Zones (NIMZ) to be set up across the
"We would focus on these manufacturing zones and we are keen on having SWFs on board to promote and set up these NIMZ. We are in talks with several of them," a senior government official who did not wish to be identified told HT.
With more than 200 million Indians expected to join the workforce by 2025, these manufacturing zones would help create several million jobs in the next few years. Besides, it would also increase the share of manufacturing in the gross domestic product (GDP) from approximately 17% at present.
The government has envisaged NIMZs as spread over 5,000 hectares, with extensive, state-of-the-art infrastructure.
In this connection, finance minister P Chidambaram is set to announce measures to boost the cash-strapped infrastructure sector, which require an estimated $1 trillion (R55.4 lakh crore) in the next five years.
An official source said the government is especially keen to give a push to the NIMZs as the country would go to polls next year. "At present, the government has little (achievements) to showcase. To add to its woes, the growth rate has decelerated, denting sentiments in a big way... therefore the government is now trying to make up for lost time and in this the NIMZs could get a huge push," the source said.
February 26th, 2013, 07:12 AM
Investment and manufacturing zone near Tumkur (http://newindianexpress.com/states/karnataka/article1468455.ece)
By N R Madhusudhan | ENS - BANGALORE
18th February 2013 11:41 AM
The Department of Industrial Promotion and Policy under the Union Ministry of Commerce and Industry has approved a proposal to set up National Investment and Manufacturing Zone in 12,500 acres of land near Tumkur.
Karnataka State Industrial and Infrastructure Development Corporation Limited (KSIIDC) Managing Director P B Ramamurthy said, “We had proposed to set up the investment and manufacturing zone and the Union government has approved the project in principle. We are planning to set up a special purpose vehicle to oversee the implementation of the project as this is the biggest project being implemented in the state.”
He said the State government would have to invite tenders to allot works for preparing plans and identifying the industries which should be given priority, finding water source for the project and electricity in accordance with the provisions of the 2011 National Manufacturing Policy. These plans would again be submitted to the Union government for approval, he added.
“Though we have proposed to set up the National Investment and Manufacturing Zone in and around Vasanth Narasapura near Tumkur, we have not identified the boundaries. We will notify the entire extent to be acquired for the project. However, the land would be acquired in phases as and when the project would be implemented,” he said.
The state government is also planning to set up a Special Investment Region on 5,000 hectares of land near Dharwad and would very soon place the proposal before the Union government for its approval, he said.
Both projects are planned in the area identified as Peninsula Regional Industrial Development Corridor as the Union government has proposed to develop infrastructure to provide road and rail connectivity and other facilities to promote industrial development in the corridor.
February 26th, 2013, 07:13 AM
UK evinces interest in manufacturing zones in India (http://www.deccanherald.com/content/313317/ukamp8200evinces-interest-manufacturing-zones-india.html)
NEW DELHI, Feb 19, 2013, DHNS:
India’s creaking manufacturing sector may get a facelift after Britain evinced interest in facilitating development of investment zones, two of which are expected to come along the Bangalore-Mumbai Industrial Corridor.
The Information Technology investment region near Bangalore and the recently approved manufacturing investment zone in Tumkur, Karnataka are the NIMZs where Britain is keen on working with India.
Union Commerce and Industry Minister Anand Sharma, after the India-UK CEO Forum meeting here, said: “Britain has shown keen interest to work with India for the establishment of National Manufacturing Investment Zones or the industrial townships.”
The Forum membership comprises co-chairs and 10 CEOs or Chairpersons each from the UK and India to ensure bilateral focus on strategic sectors.
February 26th, 2013, 07:18 AM
Need to address issues in manufacturing: BCIC (http://www.deccanherald.com/content/311487/need-address-issues-manufacturing-bcic.html)
Bangalore, Feb 11, 2013, DHNS
There is a need to develop India’s manufacturing sector, which would help create jobs and also add thrust to the GDP. In this regard, the Centre has announced a new national manufacturing policy (NMP) to enhance the share of manufacturing in GDP to 25 per cent within a decade, creating around 100 million jobs.
But enroute to the realisation of this ‘lofty’ goal, there are a number of issues and impediments that need to be identified and addressed. With this view, the Bangalore Chamber of Industry and Commerce (BCIC) on Monday held a seminar to deliberate on the issues and challenges of the NMP.
Enumerating a few challenges to manufacturing, National Manufacturing Competitiveness Council (NMCC) Member-Secretary Ajay Shankar told delegates at the seminar, “The quickest and surest way to rid the country of poverty is to boost manufacturing, which will in turn create jobs.”
Shankar added that workers’ welfare and lifestyle is more important than skills. “We need to provide good housing to workers, which must be made a higher priority,” he said, adding that National Investment and Manufacturing Zones (NIMZ) must be set up, besides establishing plant townships. He also called for a competitive exchange rate which would help incentivise value addition within the economy.
March 4th, 2013, 07:16 AM
MSME Ministry to spur exports (http://newindianexpress.com/states/karnataka/article1487371.ece)
By Express News Service - BANGALORE
04th March 2013 08:02 AM
The Ministry of Micro, Small and Medium Enterprises (MSME) has set targets to spur exports by ten per cent and beat China in terms of industrial production in the 12th Five Year Plan, Union Minister of State for MSME K H Muniyappa said.
Addressing a press conference here, Muniyappa said MSME products account for 45 per cent of the total industrial output in the country.
“Of this, we are exporting 40 per cent. We want to reach 50 per cent exports in the 12th Plan. We can achieve this with cooperation from industrial bodies, which are the engines,” he said.
The minister added the MSME sector wants to overtake China to break into the top five countries in terms of MSME production in the next five to eight years.
“We expect good growth in the next three years, thanks to a slew of schemes in place to attract entrepreneurs,” Muniyappa said.
March 4th, 2013, 07:35 AM
Union Budget 2013: UPA aims to revive economy, resolve mining logjam (http://articles.timesofindia.indiatimes.com/2013-03-02/union-budget/37388990_1_shah-commission-mines-ministry-mines-and-minerals)
NEW DELHI: The Manmohan Singh government's urgent need to energize the economy is erasing political divides with the Centre deciding to ask the Supreme Court to amend its order banning all mining in Goa and aid mining firms in Odisha mired in regulatory disputes.
A third quarter growth of 4.5% and the economic survey's conclusion about a mining slowdown hurting manufacturing has prompted the Centre to heed BJP-ruled Goa's pleas that the SC ban is maiming the state economy and rendering thousands unemployed.
Growth in pits, PM targets mining in opposition-ruled states (http://articles.timesofindia.indiatimes.com/2013-03-03/india/37410089_1_union-mines-mines-and-minerals-leases)
April 29th, 2013, 04:30 PM
In-principle approval given for 12 NIMZs (http://www.thehindu.com/business/Industry/inprinciple-approval-given-for-12-nimzs/article4666638.ece?homepage=true) The government has so far given in-principle approval for setting up of 12 National Investment and Manufacturing Zones (NIMZs), mega industrial zones with world class supporting infrastructure, Parliament was informed on Monday.“So far eight NIMZs have been announced along the Delhi-Mumbai Industrial Corridor (DMIC) in the states of Gujarat, Maharashtra, Haryana, Uttar Pradesh, Rajasthan and Madhya Pradesh.“Four other NIMZs outside the DMIC have also been granted ’in-principle’ approval — two in Andhra Pradesh and one each in Karnataka and Maharashtra,” Minister of State for Commerce and Industry D Purandeswari said in a written reply to Lok Sabha.Ms. Purandeswari said that the government has taken a number of steps to accelerate the manufacturing growth of the country.“The measures taken recently include announcement of the National Manufacturing Policy (NMP) 2011 with objectives of increasing the share of manufacturing in GDP to 25 per cent and creating 100 million additional jobs over a decade,” she added.The NMP envisages setting up of NIMZs, which are industrial townships, benchmarked to the best manufacturing hubs in the world.In reply to another question, the Minister said the government has set up a committee under the chairmanship of RBI executive director RBI G. Padmanabhan for suggesting steps to provide additional facilities to the exporters in the country.“RBI has received a number of representations from trade/exporters’ bodies highlighting the difficulties faced by them in regard to transaction cost, accounting issues, documentation, flow of finance to export sector, factoring etc,” the Minister said.The committee was constituted to evaluate the facilities/services provided by banks/financial institutions to the exporters and submit its report this month.-