Government of Andhra Pradesh

1
Government of Andhra Pradesh Welcomes Mr. Osamu
Watanabe Chairman CEO, JETRO And Business
Delegation
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Andhra Pradesh At a Glance
Area 2,76,754 sq. kms Population 76
million GSDP 45 billion GSDP (PPP) 225
billion

• Centrally located
• Well connected with road, rail, and air
  network
• Good port facilities
• Assured Reliable Power Supply
• Vast Natural Gas Resources.
• Abundant Water Reserves

A.P
3
Connectivity - Ports

• Visakhapatnam countrys largest natural port -
  Well connected with the rest of the world through
  Sea-ports on the Eastern coast

4
Connectivity - Air

• Well connected with the rest of the world
  through air

• Excellent connectivity with the
  implementation of International Air- Port at
  Shamshabad

5
Connectivity Road Rail

• Well connected Road and Rail network links
  the State with rest of the Country

• Golden Quadrilateral Project connects the growth
  nodes in the state with major cities in the
  country

6
Infrastructure in AP - Power

• Second Largest Power Hub in the country with
  11,000 MW

• 24 x 7 x 365 Undisrupted availability of power
  for the units already in place
• Most Competitive Industrial Power Tariff compared
  to industrially developed States

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Strong Industrial base

• Ship Building
• Fertilizers
• Hi-precision Machine Tools
• Power Generation Equipment
• Electronic Hardware
• Long Range Missiles

8
Strong Industrial base

• Castings and Forgings
• Defence Electronics
• Steel and Ferro Alloys
• Ceramics
• Petrochemicals
• Textiles

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Exports To Japan from Andhra Pradesh
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Japan FDI into Andhra Pradesh
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ADVANTAGE A.P..

• Exports from A.P are growing _at_ 10 every year
• Bulk Drug Capital of the Country with 1/3rd of
  Indias Production
• Globally recognized and fastest growing base
  for IT and IT enabled services
• A.P is the second largest store house of
  mineral resources in India
• A.P is the cement and granite power house of
  India
• Leading Producer of Paper
• Leading state in several Agro-based industries
  Sugar, Edible Oil, Sea foods

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Strongest R D Base

• Central Institute of Tool Design
• Defence Research Development Organisation (DRDO)
• Defence Electronics Research Institute
• Defence Metallurgical Research Institute
• Indian Institute of Chemical Technology (IICT)
• Centre for Cellular and Molecular Biology (CCMB)
• National Institute of Nutrition (NIN)
• Centre for DNA Fingerprinting and Diagnostics
  (CDFD)
• Central Institute of Plastics Engineering and
  Technology (CIPET)

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Advantage Andhra Pradesh
BHEL - Largest Engineering Manufacturing
Enterprise in India
Compressors
Gas Turbine
Steam Turbine

• Products
• Gas Turbines (Largest in India)
• Steam Turbines
• Compressors
• Turbo Generators
• Heat Exchangers

• Pumps
• Pulverisers
• Switch Gears
• Gear Boxes
• Oil Rigs

Heat Exchanger
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Advantage Andhra Pradesh
Defence Research and Development Laboratory
(DRDL), AP

• Research Center for the integrated Missile
  Development Programs

Prithvi S2S battlefield Missile Nag Anti-tank
Missile Akash a swift, Medium range S2S missile
Agni An intermediate range ballistic
Missile Trishul a quick reaction S2S Missile
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Advantage Andhra Pradesh
Defence Metallurgical Research Laboratory (DMRL),
AP
Fabricate and weaponize the nuclear devices

• Contribution to AGNI
• Maragingsteel motor castings for the Polar Space
  Launch Vehicle (PSLV)
• Aircraft inventory of Soviet MIG fighters
• Conventional titanium and nickel based alloys and
  indigenous Indian alloys
• Defence Material to aerospace industry

• Rare Earth Magnets (REMs) advanced technology
  developed

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Talent Pool

• Large pool of English-speaking graduates

U.G. Colleges
3,50,000 graduates/year
86,000 engineers/year (Around 18,000
Comp.Sc. students)
280 Engineering Colleges
25,000 seats/year
103 Polytechnic Colleges
272 MCA Colleges
13,555 seats/year
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Talent Pool
Silicon Valley
Hyderabad
Every 4th IT professional in Silicon Valley is an
Indian
Every 4th Indian IT professional in Silicon
Valley is from AP
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Automobile Industry

• Preferred destination for Automotive companies
• Strategic location between Northern and Southern
  India
• Long Coastal belt with Sea coast
• Vibrant Ancillary Sector Exporting components
  to Australia, Germany, Iran, Italy, UK and USA
• Skilled workforce
• Huge Captive and emerging markets
• Increased demand for Cars due to improved road
  network

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Skill Sets of Workers Employed in Auto
Components Industry in Andhra Pradesh
SNO
AUTO COMPONENTS PRODUCED
SKILLED JOBS CARRIED OUT
MACHINED COMPONENTS
1 2 3 4 5 6 7 8 9
Castings- Precision / High Pressure (Steel,
Aluminum GI) CNC machined components Steel
Forgings Engine Parts Engine Valves Cylinder
Liners Piston Pins Rings Axle Shafts
Gears Bearings
Die making , Casting Machining Tooling
precision machining Forging, Annealing Precision
machining, grinding Forging, Precision Machining,
Heat treatment Precision machining Forging,
Precision Machining, Heat treatment,
GrindingForging, Precision Machining, Heat
Treatment, Grinding, Gear Hobbling Forging,
Precision Machining, Heat Treatment, Grinding
Assembling
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IMPORTANT AUTO COMPONENTS MANUFACTURING PLAYERS
IN ANDHRA PRADESH
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Hardware Industry

• Export potential of Hardware sector - US 10
  billion by 2008
• It is a hub to cater to the increasing demand
  both in India as well as other markets in
  Europe, Africa and the Asia Pacific region with
  world-class infrastructure
• Major players already set up their base..
• Millennium Appliances Refrigeration TVs
• Astra Micro Wave Products Defence electronics
• Allotted 200 acres to INTECH
• Scope for investment in Nano Technology, Semi
  conductors, computer peripherals,
  appliances, precision engineering , ICs, LSICs,
  VLSICs.
• SEMINDIA taking shape with IBM Collaboration
• Preliminary Site survey for Mega fab
  project indicates that Hyderabad is
  the best destination

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Other Sector Specific Parks

• 5000 acres - 40 Km from Hyderabad
• 222 acres developed
• 168 acres under development
• 4 Major National and International Companies have
  started their activities
• Close proximity to Rajiv Gandhi International
  Airport

HARDWARE PARK

• Special Economic zone at Visakhapatnam

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Pharma Industry

• A.P is leading Pharmaceutical centre and No.1
  state with 30 share of the Indian Pharma
  Industry.
• Pharma Industry in AP growing by over 20 p.a.
• Over 100 pharma companies located in AP
• Good base for RD in Pharma Sector
• Cost advantage - 45 percent lower than the
  generics manufactured in a developed country, and
  75 percent lower than those of an RD-based
  multinational.
• Leading firms like Dr. Reddys Lab, Aurobindo
  Pharma, Suven Pharma set-up their base in the
  State
• Pharma City at Visakhapatnam - a unique project
  with common facilities like effluent treatment
  plant, marine outfall, hazardous waste management
  system and utilities
• Opportunities
• Manufacturing of Bulk Drugs Pharma
• Generics
• Pharmaceuticals Formulations
• Contract RD

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Bio-tech

• A.P is the leading centre for Biotechnology
  awarded BIO STATE OF THE YEAR 2003 by
  Bio-spectrum
• First State in the country to produce genetically
  engineered rDNA medical products - Shantha
• About 75 bio-tech companies established their
  base
• Major bio-tech companies are Shanta Bio-tech,
  Bharat Bio-tech, Biological E Ltd, GVK
  bio-sciences, Krebs Bio-chemicals, Ocimum
  Bio-solutions
• Created State-of-art specialized infrastructure
  like
• Genome Valley - Bio-tech Incubation Centre
• Shapoorji Pallonji Bio-tech park over 300 acres
  of land at Turkapalli
• Agri Science Part at ICRISAT
• Marine Bio-tech park at Visakhapatnam
• Opportunities
• Existing RD base offers Biological Contract R
  D Thanks to GOI for IPR Act

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Pharma and Biotech Parks

• For Bulk Drugs manufacturing Industries
• 40 KMs from Visakhapatnam
• Spread over an area of 2200 acres

Jawahrlal Nehru Pharma City at Visakhpatnam

• Biotech Park
• For biotech manufacturing industries
• 35 KMs from Hyderabad
• Spread over an area of 300 acres

Genome Vally

• India's first state-of-the-art biotech cluster
  with world- class infrastructure - Spread
  over 600 sq. kms,
• 35 Kms to Hyderabad
• Genome Valley is a natural cluster for biotech
  research, training, collaboration and
  manufacturing activities

ICICI Knowledge park

• 200 acres - 35 Km from Hyderabad
• World class centre for leading-edge
  business-driven research in India".
• Major National and International Companies have
  started their activities

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Apparel

• AP is the 2nd producer of quality Cotton in the
  country
• Well developed spinning and processing sectors
• Major Player Chermas, Fantoosh, Karthik,
  Recherla, Symatic and Hindustan
• Availability of low cost, skilled semi-skilled
  lab our.
• Govt. provides Rs.1/- per unit concession in
  power cost for textile units
• Opportunities
• After removal of QTR in 2004, India in general
  and A.P in particular has vat potential for
  promoting Garment industry
• Excellent Scope for Garment Industry China
  alone exporting apparels - Rs.60 bil
• Exports of apparels expected to grow to US 2
  billion by 2010
• Vast scope for Garment/apparel industry in the
  State utilising the raw materials and
  infrastructure

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Performance of Andhra Pradesh

• IT sector tops accounts for 45 of total
  exports of all the sectors from the State.
• IT exports have crossed Rs 82.7 bil mark with an
  impressive growth rate of over 64.5 against
  the national average of 34

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Global Firms Established in Andhra Pradesh
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Infrastructure IT Parks
HITEC City Developed by LT
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Infrastructure IT Parks
MinSpace Hyderabad

• MindSpace is another joint venture of the
  Government in creation of physical
  infrastructure to ICT industry
• MindSpace has so far developed 1 million
  sft, creating an employment of more than
  8,000
• Houses prestigious ICT MNCs such as
  Continuum Solutions, CSC, IBM, Accenture,
  Amazon, Qualcomm, Verizon and many more

Aerial View -MindSpace Hyderabad
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Infrastructure IT Parks

• RMZ Futura
• Covering 5.24
• acres
• 350,000 sq. ft. of
• built-up space
• Occupants
• include Deloitte
• Google

• Vanenburg IT Park
• 850,000 sq ft of
• built up space
• Occupants
• include CA,
• Motorola, CTS

• Other IT/ITES parks
• Splendid Towers, Cyber Spazio and many others

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Infrastructure Private Campuses

• Deccan Park (TCS)
• TCS initiative covering 11 acres
• 320,000 sq.ft development center
• Employs 3,200 IT professionals

• Infosys Development Centre
• Campus spread
• over 50 acres
• 511,000 sq.ft of
• built-up area
• Employs 5000
• software
• professionals

• Satyam Technology Centre (STC)
• 240 acre Hi-
• Tech centre at
• Hyderabad

• Wipro
• 200,000 sq. ft. SDC
  in Madhapur
• SDC in Manikonda spread over 30 acres

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Investor Friendly Governance policy initiatives

• Single Window Clearances Act - Industrial
  clearances at Single Point
• APINVEST - First contact point for Non Resident
  Indians
• Highest Board - State Investment Promotion Board
  for investment Promotion
• Infrastructure Authority Infrastructure
  Enabling Act
• Simplified Procedures

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Investor Friendly Governance - Incentives

• Infrastructure
• Infrastructure at the Door-step
• 100 reimbursement of Stamp duty
• 25 rebate in Land cost (APIIC)
• Power
• Reimbursement of power cost _at_ Rs.0.75 per unit-
  unique State to offer
• Growth Enabling Incentives
• 25 VAT reimbursement
• 15 Investment Subsidy to SSI units.
• 3 interest subsidy to SSI units.
• Incentives for quality , patent registrations.
• Mega Projects
• Tailor Made Special Incentive Package for Mega
  Projects ( gt Rs.1000 Million)

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Andhra Pradesh - the most IDEAL destination for
investment in INDIA
Thank You
visit www.apind.gov.in