100 acres allotted by RIICO to ELCINA to set up India’s first model Greenfield Electronics Manufacturing Cluster at Bhiwadi; investment of Rs. 1,200 crore and 14,000 new jobs expected
Mr C S Rajan, Chairman, RIICO, Ms Veenu Gupta, Principal Secretary, Industry and Managing Director, RIICO and other dignitaries address industry and trade representatives at RIICONNECT ESDM Investors’ Meet 2014 at New Delhi
Jaipur and New Delhi: Known around the world for its rich culture, forts, palaces and festivals, the 21st century, modern state of Rajasthan, is witnessing an industrial revolution that was beyond imagination even fifty years ago. Having been traditionally strong in the production of Textiles & Jewellery, the state has made big strides in taking up the manufacture of Automobiles in the last few years, and is now re-focusing on attracting investments from the ESDM sector.
In the last couple of decades, India has been the epicentre of consumer demand fuelled by an above-average GDP growth. With increase in demand across all sectors, demand for electronic products has registered a significant growth. By the year 2020, India’s estimated electronics production will reach US$ 100 billion but will still be short of the estimated demand by US$ 300 billion. This creates a unique opportunity for companies in the Electronic Systems Design and Manufacturing (ESDM) sector to look at India as their next destination to cater to the local demand as well as act as an exports hub. The sector is likely to grow at a 9.9% CAGR over 2011-15, as per an industry study.
The State Government and RIICO have together taken initiatives to promote and develop the ESDM sector by way of creating infrastructure such as IT Parks, SEZs, communication infrastructure (Earth Stations and Optical Fibre networks), improving availability of skilled and trained manpower through institutional tie-ups, and offering customised packages and incentives for the sector.
RIICO: Rajasthan’s Industrial Catalyst
According to Mr. C. S. Rajan, IAS, Chairman, RIICO, “Rajasthan State Industrial Development and Investment Corporation Ltd. is as a multi-faceted and dynamic institution for promoting and accelerating industrial development in Rajasthan. From developing industrial land and making it available to investors, to understanding industry-specific infrastructural needs of every company that locates in the state, I have seen its role diversify over the years. We have been playing the role of an industry support system by not just making industrial land available, but also by providing a variety of technical inputs to investors desirous of setting up facilities in the state.”
“Already home to pioneering companies from all sectors like, Honda four-wheelers, Honda two-wheelers, JCB, Lafarge, Saint Gobain, Infosys, Ericsson Telecom, Videocon, Deutsche Bank, Genpact, REIL to name just a few, Rajasthan has shown promising progress in the Electronic System Design & Manufacturing (ESDM) sector in the last few years”, Mr. Rajan added.
Rajasthan: A Preferred Investment Destination
The large and growing automotive industry based in and around the state is a major growth driver for ESDM industrial units setting up shop in Rajasthan. Today, more than 40% of two wheelers and four wheelers of the country are produced within a 50 km radius of Bhiwadi region, which provides an excellent and large market for automotive electronics.
“Rajasthan is also emerging as the most favoured destination for solar, power and ceramic and glass sectors. Input requirement of numerous companies in these industries will be a ready market for ESDM players that choose to locate here. Be it world-class infrastructure or strategic location, large industrial land parcels or great market access, Rajasthan has all the reasons for being the most preferred investment destination”, added Ms. Veenu Gupta, IAS, MD, RIICO Ltd.
“We are creating basic infrastructure for electronics manufacturing clusters in the Bhiwadi region like Power Sub-Stations, Power Lines, Roads, Drainage Systems etc. Besides this, the region will offer the unique advantage of a Technology Centre to be established by Ministry of MSME, Govt. of India. This centre will offer total solutions for die-making and manpower training with scope for regular updation on latest techniques in tool engineering and general engineering. It will also provide technology incubation services and transfer of technology. Renowned international agencies will be roped in to assist the Technology Centre to act as a Total Technology Centre, beyond tool room activities”, Ms. Gupta explained further.
Highlight: ELCINA ELECTRONICS MANUFACTURING CLUSTER BHIWADI
One hundred acres land has been reserved for ELCINA Electronics Manufacturing Cluster to set-up a ‘greenfield’ EMC in Salarpur near Khushkheda in Bhiwadi.
Stated Mr. Vinod Sharma, Director, ELCINA EMC Bhiwadi, “We at ELCINA have teamed up with RIICO and Govt. of Rajasthan to not only provide basic industrial infrastructure and term loans, but in fact are working closely with industry representatives to provide total solutions required by specific segments of the ESDM value chain.”
“Electronic products extensively require sheet metal and plastic components which are shaped by dies. The proposed Technology Centre at Bhiwadi will prove to be handy for meeting this requirement. Even labour force working on sheet metal and plastic components would get trained in the Technology Centre for optimum productivity”, Mr. Sharma underlined.
Many electronic products require small motors. A world-renowned brand of Japan are at an advanced stage of implementing their unit to manufacture motors (10 watt to 1,700 kilowatt) at the Japanese Zone, Neemrana just 50 km from Bhiwadi region.
Similarly, most electronic products require a plastic housing. World known brands have established Polymer Compound Units through their subsidiaries in the Japanese Zone, Neemrana, which can provide customised polymer granules suitable for specific products. Similarly, a well-known Japanese brand in its field, can provide colouring polymer compounds required by ESDM manufacturers.
A world leading company in rubber seals, based in Neemrana, can help in providing solutions for required in electronic products. The induction furnaces and steel sheet rolling mills located in the area can provide customised sheet metal for specific requirements.
Many electronic products that have electro-mechanical parts require small bearings. Renowned manufacturers of small powder metal bearings located in Neemrana can supply this product for electro-mechanical components of electronic products.
Again, most electronic manufacturing units require a clean, air conditioned atmosphere. The world’s No. 1 company Daikin is also located in Neemrana, and is in a position to provide customised air-conditioning solutions.
A population of more than 100 million with high per capita income than national average within a radius of 150 to 200 km of Bhiwadi region provides an excellent market for consumer electronics.
Mahindra World City Jaipur: The ‘Mini Silicon Valley’ of Rajasthan
Started in 2007, Mahindra World City, Jaipur is yet another marvel driving the mission of Mahindra World Cities of achieving balance between Life, Living and Livelihood. Spread across 3,000-acres with a 2,500-acre multi-product SEZ, Mahindra World City Jaipur serves as a conduit between entire North India and the ports of the Western coast.
Stated Mr. Sanjay Srivastava, COO, Mahindra World City Jaipur, “Promoted in a PPP between the Mahindra Group and RIICO, Mahindra World City Jaipur is at par with the best business destinations in the world. Jaipur has attracted companies such as Genpact, Coca Cola, Ericsson, MICO, JCB, Infosys and NEI with its investment-friendly climate and pro-business attitude. A renowned tourism destination, Jaipur offers a cosmopolitan lifestyle coupled with superior social infrastructure.”
Highlights of Mahindra World City Jaipur
- Promoted by the Mahindra Group and RIICO
- Located on the Golden Quadrilateral, 18 km from Jaipur Airport and 21 km from Jaipur Railway Station
- Offers multi-product SEZ with dedicated zones for IT / ITeS, Engineering and Related Industries, Handicrafts, Apparel, Gems and Jewellery, Warehousing and Logistics as well as a Domestic Tariff Area (DTA) for various industries
The above advantages, coupled with almost uninterrupted power supply and logistics support of Delhi-Mumbai Freight Corridor (DFC) for domestic and overseas transportation of goods makes Mahindra World City Jaipur an excellent location for setting up ‘plug-and-play’ units in the areas of Electronics, IT, ITeS and Telecommunications.
RIICONNECT: ESDM Investors’ Meet 2014 New Delhi
On Tuesday, August 26, eminent speakers such as Mr. C. S. Rajan, Chairman, RIICO, Ms. Veenu Gupta, MD, RIICO, Mr. Vinod Sharma, Director, ELCINA EMC Cluster Pvt. Ltd. Bhiwadi, Mr. Subhash Goyal, President, ELCINA, Mr. Naoyoshi Noguchi, Chief Director General, JETRO India and Mr. Sanjay Srivastava, COO, MWC Jaipur addressed and interacted with ESDM industry delegates and foreign trade representatives at RIICONNECT, held at Le Meridien, New Delhi. They discussed the challenges facing the ESDM sector and the many excellent opportunities and incentives available for companies that wish to enter India, particularly the state of Rajasthan to set up assembly, manufacturing and R&D units. The roadshow was well-attended by about 150 senior executives from the global and India ESDM sector and trade representatives from leading countries.
The proceedings were also webcast live and will be available for thirty days on www.cmrindia.com.
The Rajasthan State Industrial Development & Investment Corporation Limited (RIICO) is a Government Company, wholly owned by Government of Rajasthan. RIICO is the apex organization for fostering growth of industrialization in the State of Rajasthan. It is also the Nodal Agency of the State to promote and develop Special Economic Zones (SEZ) in the State.
With 26 regional offices all over Rajasthan, RIICO administers the development of land-related infrastructure for industrialisation and continues with its mandate of acquiring and developing more land.
So far, RIICO has developed 324 industrial areas over 72,700 acres of land. Needless to say, this development has been planned and executed without compromising on environmental and ecological aspects in any way.
For more details, please visit http://www.riico.co.in.
ELCINA was established in 1967 when India’s Electronics industry was still in its infancy. Since then, ELCINA has been well known as an interactive forum for electronics and IT manufacturers. Apart from the basic objective of promoting hardware manufacturing through active representation and advice to the Government, ELCINA has been networking with national and international technical institutions and business promotion bodies to further the interests of its members. Today, in an increasingly liberalised environment, there is greater focus on professional and value-added services rendered by the Association to the Electronics and IT Community.
As India’s oldest and largest electronics Association, ELCINA has always remained committed to the promotion of electronics manufacturing culture in the country, focusing on components – the building blocks of electronics industry. ELCINA, now renamed as ELCINA Electronic Industries Association of India, has widened its horizons and broadened its activities to include the development of entire Electronics and IT Hardware, including components & assemblies, consumer electronics, telecom, IT, industrial/professional, defence/strategic electronics and other emerging areas like medical and automobile electronics, embedded systems and hardware design.
ELCINA continues to work towards correlating the common interest of electronic hardware manufacturers with that of manufacturers of electronic materials, machinery and service providers, for accelerating growth.
For more details, please visit http://www.elcina.com/.
About ELCINA ELECTRONICS MANUFACTURING CLUSTERS
Government of India has created a focused policy for attracting investment, providing incentives, identifying land for manufacturing clusters etc. ELCINA took the early initiative to establish first few ‘greenfield’ clusters under National Electronics Policy 2012 in India. ELCINA believes that this policy will give a major boost to the manufacturing of Electronic Products in India. ELCINA is promoting the following clusters:
For more details, please visit http://www.elcinaclusters.in/.
About MAHINDRA WORLD CITY, Jaipur
Mahindra World Cities pioneered the concept of integrated cities designed to create a balance between Life, Living and Livelihood. These integrated urban centers are located near existing metros and comprise SEZs, Industrial Parks, Retail and Social Infrastructure.
Planned as a single point destination for domestic and global companies, Mahindra World Cities include Special Economic Zones and Domestic Tariff Areas. At full stage of development, it envisions to generate direct employment for more than 2,00,000 people. The Lifestyle Zone, located alongside the Business Zone, offers residences, schools, medical centres, retail malls, business hotels, recreation and leisure facilities, and wide open green spaces for a clean, healthy environment. Bringing life to the city is an environment replete with culture, sports, music, festivals and a lot more.
Mahindra World Cities are operational at Chennai, Tamil Nadu and Jaipur, Rajasthan.
Mahindra World City Jaipur, located off NH8, spans across 3,000 acres and is a joint development with Rajasthan State Industrial Development and Investment Corporation (RIICO). It has been selected as one of 16 projects worldwide by the Clinton Climate Initiative (CCI).
For more details, please visit http://www.mahindraworldcity.com.
About the National Policy on Electronics 2012
To fuel the growth of the ESDM sector the Government of India announced the National Policy on Electronics 2012 (NPE 2012). One of the important objectives of the NPE is to achieve a turnover of about USD 400 billion by 2020 involving investment of about USD 100 billion and employment to around 28 million by 2020. This inter alia, includes achieving a turnover of USD 55 billion of chip design and embedded software industry & USD 80 billion of exports in the sector. Moreover, the policy also proposes setting up of over 200 Electronic Manufacturing Clusters.
Another initiative in this direction is Electronics Manufacturing Cluster (EMC) Scheme to create world-class infrastructure for attracting investments in the Electronics Systems Design and Manufacturing (ESDM) sector. The scheme provides grant assistance for setting up of both ‘Greenfield’ and ‘Brownfield’ EMCs.
Rajasthan Policies, Incentives and Advantages for the ICT and ESDM Sectors
- IT Policy 2007 and Industrial and Investment Promotion Policy 2010: Government of Rajasthan is making all efforts to promote and develop the IT Sector (including Electronics) with its IT Policy 2007 and Rajasthan Industrial and Investment Promotion Policy 2010. IT-ITES and ESDM are key sectors for development in the state.
These policies are aimed at giving thrust to the IT/ITeS sector including Electronics Hardware Manufacturing.
- New Rajasthan Industrial & Investment Policy: The state’s new policy with emphasis on Electronic System Designing and Manufacturing is in the offing, awaiting consideration and approval of the State Government.
As the ESDM sector grows to new frontiers in India, Rajasthan is positioned to offer players in this sector unparalleled advantages to locate here, grow and benefit. Some of the key ones are summed up here:
- Availability of Quality and Continuous Power Supply: One of the most basic and inevitable prerequisites for setting up an ESDM, or any industry for that matter, is quality and continuous power supply. With firm steps to augment availability of power for industrial, commercial, domestic and agricultural consumption, we in Rajasthan have arrived at a total power generation capacity of over 15,000 MW.
Renewable energy sources such as wind power, solar energy and biomass are being actively promoted by the State Government.
- Low Gestation Period: Another factor that is desired by every investor is a low gestation period. The constant endeavour of the Government of Rajasthan has been to build a favourable investment climate by systematically reducing administrative bottlenecks and easing the process of investment.
- ‘Single Window’ Clearance: A ‘Single Window System’ is operational as a single point interaction mechanism for entrepreneurs to interact with the State for seeking statutory approvals for their projects. Reflecting the commitment of the government, this system has been put in place by enacting the Rajasthan Enterprises Single Window Enabling and Clearance Act 2011.
- High Employment Potential: To ensure abundant availability of trained human resources, the state’s constant endeavour is to build as well as support the growth of a robust educational infrastructure. In Rajasthan, dependable workforce is available at lower costs as compared to other states in the country. Jaipur, the state’s capital has been ranked no.1 in talent sourcing and employee costs by Hewitt Associates in 2007.
- Reputed Institutions of Higher Learning: Rajasthan houses many prestigious academic institutions for higher technical education such as BITS (Birla Institute of Technology & Science) and IIT (Indian Institute of Technology), amongst others. The technical institutes in the State have an intake capacity of over 2.2 lakh students.
- Law and Order: The law and order in the state is strong with no incidents from its industrial history to point otherwise. Overall a peace loving state, Rajasthan has always welcomed and accepted people from all parts of the country, of all religions and all nationalities to come and locate here. It is an outcome of this, that Rajasthan is home to a Japanese Industrial Zone in the Neemrana region.
- Market Access: 8,380 sq km of Rajasthan falls in the National Capital Region (NCR), which is around 24.5% of the total National Capital Region, the world’s second largest urban agglomeration. Rajasthan shares its border with five major Indian states: Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat. Industries in Rajasthan have to their advantage, access to this enormous market.
- Excellent Connectivity: Rajasthan has the second largest network of National Highways in the country with a total road length exceeding 7,000 km. National Highways provide excellent connectivity to cities like Delhi, Ahmedabad, Vadodara, Mumbai, Jabalpur, Bhopal, Agra, Gwalior, Indore, Amritsar. The total road length in the state is approximately 192,551 km as on 31st March 2013.
- Strategic Location within the Delhi-Mumbai Industrial Corridor (DMIC): With nearly 39% of the DMIC-aligned Dedicated Freight Corridor (DFC) passing through Rajasthan, numerous opportunities for industrial establishments are emerging. The corridor will make Rajasthan easily accessible to western India and northern India markets. About 60% of the state’s area (in 22 districts, including major districts such as Jaipur, Alwar, Kota and Bhilwara) falls within the project influence area. With this, the state will become an attractive destination for setting up industrial and support infrastructure units.
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