Cochin Special Economic Zone- CSEZ | Discussions and updates

[mohammedirshad06]

Cochin Special Economic Zone, located in Kakkanad, is one of the 7 SEZs established by Central Govt directly in 1985. A multi-product Free Zone, its one of the country's major export oriented products production facility centre.



This thread is for discussing about CSEZ and its updates.

[Prasanth_KCV]

Quote:
Originally Posted by DileepKS
Does that matter, as long as we get the value addition?.

For the skeptics, here is the detail of value addition:


Code:
SL # Type of Industry Exports Imports Net Export

1 AGRO & FOOD 161.52 90.64 70.88
2 ELECTRONICS HARDWARE 468.16 163.08 305.08
3 ENGINEERING 75.56 20.91 54.65
4 GARMENTS 3.12 0.19 2.93
5 GEM & JEWELLERY 28473.69 26594.87 1878.82
6 IT AND ITES 314.12 3.27 310.85
7 MISCELLANEOUS 114.81 110.00 4.81
8 PLASTIC AND RUBBER 58.12 14.42 43.70
9 SERVICES 0.01 0.00 0.01
10 TEXTILES & GARMENTS 113.69 77.26 36.43
11 TRADING 178.81 203.94 -25.13

Total 29961.61 27278.58 2683.03
That is 2683 Cr net export earnings. Better than any ITVty setup!!

Originally Posted by Aslesh

1878.82 crores from Gem & Jewellery is not even 1% of 26594.87. From IT & ITES 310.85 crores is aroun 10000% of 3.27 crores. Means it uses indigenous resources. Then you say it is better to invest on the former. That doesn't make any sense. Any wise person would invest more on industries which give maximum return of investment.

Dear Aslesh you can't arrive at profitability by comparing export and import figures, it just shows how much u exported and imported in a particular period. To arrive at profitability you have to compare between income and expenses but unfortunately those figures are absent here.

[Malayaali]

X-posting from Cochin projects thread.

Originally Posted by DileepKS

Cochin SEZ beats recession

The Cochin Special Economic Zone has weathered the Eurozone crisis and dogged recessionary trends in other parts of the world to record a 63 per cent rise in exports during the last financial year.

The big performance was aided by a massive increase in gem and jewellery exports worth Rs.28,473 crore during 2011-12, compared to Rs.16,951 crore during the previous financial year.

According to reports earlier, total exports from special economic zones in the country grew to Rs.3.6 lakh crore during the last financial year at the rate of 15 per cent from the previous financial year’s level of Rs. 3.1 lakh crore.

The total export turnover at the CSEZ during 2011-12 stood at Rs.29,961 crore against Rs.18,311 crore during the pervious year, gem and jewellery accounting for bulk of the growth.

Textiles were one area where there as a marginal fall in export earnings during the last financial year compared to the previous year. Textile exports were worth Rs.113 crore during 2011-12, down from the previous year’s level of Rs. 167 crore. Agro and food exports, worth Rs.118 crore during 2010-11 went up to Rs.161 crore during the last financial year. Engineering goods exports were worth Rs.75 crore last financial year compared to Rs.69 crore during the previous year.

Electronic software products accounted for a total export of Rs.314 crore during 2011-12 compared to Rs.244 crore during the previous year. Hardware exports stood at Rs.468 crore during the last financial year, marginally up from the previous year’s level of Rs. 464 crore. Plastic and rubber products and garments were smaller portions of the total exports earnings.

[DileepKS]

I have worked on these SEZ numbers (for my company) for a few years, so let me try to explain.

Any typical business in the SEZ will have imported material and locally sourced material. You add all material content, and subtract it from the export price, to get the "value addition". The SEZ units are evaluated based on that number.

An IT/ITES company do not have any material content. So, you can compare the value additions of companies, eliminating the material impact.

Of course, having a higher material content will increase the "cost of finance" for the operation. But this is easily offset by the "human expense" content of ITVty operations.

I don't think there is significant local material content in Gem and Jewellery business. They will be sourcing the precious metals and stones from abroad. Only packing materials would be local. So, a direct comparison of net exports would be still valid.

[agnath.]

I agree "Net Export" numbers and cash flow are important, but I feel a direct comparison is not right.... Focus could be given to industries with better numbers on "Total Exports"/ "Cost of revenue".

Having "human expense" higher is actually good for people around CSEZ, as a good amount of human expense would invested/spent there.

[DileepKS]

Actually, it is the "value addition", not the "net export" that matters, and need to be compared across industries. CSEZ do compile the value addition, as it is their primary benchmark of performance. But I don't see it published on the site. Since Gem and Jewellery do not use significant domestic material, net export ~~ value addition.

The correct policy will be to promote industries that provide a balanced spectrum of employment. Promoting IT/ITES companies alone results in social imbalance.

That is one reason why I like electronics hardware manufacturing. It provides a balanced employment pattern, beginning from 10th, ITI, Diploma, Engg and beyond.

[agnath.]

Originally Posted by DileepKS

The correct policy will be to promote industries that provide a balanced spectrum of employment. Promoting IT/ITES companies alone results in social imbalance.

Agree fully, we can see the social imbalance created by IT folks in Bangalore. But in Kochi we have a case where IT numbers are hardly comparable with rest.

Originally Posted by DileepKS

That is one reason why I like electronics hardware manufacturing. It provides a balanced employment pattern, beginning from 10th, ITI, Diploma, Engg and beyond.

A leadership in electronics hardware manufacturing would have amazing social impact. Lets look forward to Amballoor

[mohammedirshad06]

Gold Shines for CSEZ

Despite its high price, gold continues to give Kerala reasons to cheer up. The latest export earnings of gold jewellery from the Cochin Special Economic Zone (CSEZ) have touched Rs 28,473 crore.

The magnitude of gold’s worth sinks in only when one learns that it constituted the major chunk of the total export earnings of the CSEZ in 2011-12, which was Rs 29,975 crore.

In the previous year, gold exports at the CSEZ stood at about Rs 16,951 crore out of total export earnings of Rs 17,982 crore.

CSEZ sources said that high earnings from gold was partly due to the rise in the prices of gold and decline in the value of the rupee.

But the quantity exported too has gone up with a couple of jewellery manufacturing units joining the CSEZ last year.

While there are 16 gold and jewellery manufacturers in the CSEZ now, around 10 more units are waiting to join the zone this year. Gold exports from the state were exclusively to the Gulf and European countries.

“While exports to Gulf countries are mostly jewellery, Europeans prefer coins. Competitive pricing also was a reason for the boost in the demand for Kerala gold abroad,” said Mr P.V. Jose, state president of Jewellery Manufacturers Association.

Sector-wise export data of the CSEZ for 2011-12 also showed that after gold, electronics and hardware exports earned Rs 468 crore worth foreign exchange, IT&ITES Rs 314 crore, food and agricultural produce Rs 161 crore and textiles and garments Rs 113 crore, engineering items Rs 76 crore and rubber and plastic Rs 58 crore.

[aniumi]

Topic good, thank for your sharing information.

[Kochi Resident]

I read in Passline that the strength of people working in various industries in Kakkanad are 50000. So there will be at least 30000 people working in CSEZ. Please see below

Emerging Kerala: SCMS to invest 150 crore
TNN Sep 5, 2012, 04.54AM IST


Tags:
SCMS Group|Business school
KOCHI: SCMS Group, a Kochi-based academic house, plans to develop an academic complex in the Smart City campus with an investment of Rs 150 crore, said G P C Nayar, chairman of the group. The project will be presented in the Emerging Kerala event in Kochi this month.

"The Kakkanad region of Kochi has roughly 50,000 people working in various industries and this number is expected to touch 4.5 lakh by the calendar year 2020. SCMS Group aims to render state-of-the-art academic service to the working executives of this fast developing Information Technology hub of Kerala," Nayar said in a statement.


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SCMS will set up a higher secondary school with play school, engineering college, business school and a management and technology training institute, to cater to the children of the executives working in Smart City. The first phase of the project would be complete by 20

[Malayaali]

Why? Do you think IP & CSEZ are the only industrial setups in Kakkanad?

It should be some 15k for CSEZ, i believe.

[Kochi Resident]

So it should be

Infopark 17 K
CSEZ 15 K

So you mean to say that there are 18 K employees in companies other than Infopark and CSEZ?Are there that many companies outside Infopark and CSEZ in Kakkanad?

Originally Posted by Malayaali

Why? Do you think IP & CSEZ are the only industrial setups in Kakkanad?

It should be some 15k for CSEZ, i believe.

[Prasanth_KCV]

There will be arround 3000 people working in institutions like NPOL Kakkanad, Civil Station, Kerala Govt. Printing press, Akashavani, Geojit Securities.

[Prasanth_KCV]

Forget to add VSNL

[Malayaali]

There are 3k working with KRL, 2k with FACT. The construction sector will alone contribute another 5k. And there are more.

[Prasanth_KCV]

KRL is in Karimugal & FACT is in Udyogamandal, not in Kakkanad. Moreover, there are roughly arround 8000 people working in FACT.

[Malayaali]

Originally Posted by Prasanth_KCV

KRL is in Karimugal & FACT is in Udyogamandal, not in Kakkanad. Moreover, there are roughly arround 8000 people working in FACT.

All that comprises the Kakkanad region. We can't expect 50k working in and around collectorate!

Total employees in FACT is divided between various locations. I was assuming around 2k for Ambalamedu, not for Eloor.

[DileepKS]

What about Nitta Gelatin? They have around 500 staff. There are other units in the Kinfra Park as well. Of course, those are not "celebrated" jobs like ITvty.

50K is a good number IMO

[Malayaali]

I think, there would be at least 300 onsite workers for DLF New Town project alone.

[Prasanth_KCV]

4000 employees are working at KITEX garment factory at Kizakkambalam.