search - november - investment destination 2012

oundation defines the shape and ultimately, success—be it of a person, company, state, nation or a ‘building’ (construction) itself! Talking about foundations, November is a very special month for the state of Karnataka; on November 1,1973, the state came into being, and hence, is the Foundation Day.

Being the true partners of the industry, we present and dedicate this special edition of Investment Destination Karnataka to each individual, each company, each association and

each policy maker, who has contributed towards making the foundation of the state of Karnataka so strong that today it is one of the most stable states, having a robust business and trade environment along with a conducive ecosystem for the next generation to achieve their ambitions.

Karnataka has always been at the forefront of industrial growth in India. With its inherent capabilities coupled with its enterprising citizens, Karnataka provides the ideal choice for investment opportunities. Hon’ble Minister for Industries Shri Murugesh Nirani is not making a statement, but narrating a reality when he says that ‘Karnataka offers what it takes for companies and industries to grow.’ He informs, “In the recently concluded Global Investors Meet in June 2012, we were able to receive investment commitments to the tune of `7.2 lakh crore. (Do read his exclusive interview in this edition).

No wonder then that manufacturing companies are queuing up to put the money where the progress is; like Tata Steel is pledging an investment of `30,000 crore to set up a steel plant in Haveri district. Also, BMM Ispat, the second largest steel maker in Karnataka, will be going in for capacity expansion with an investment of `6,700 crore in Hospet in Bellary district. Then again, Welspun Energy will be investing `5,675 crore in developing two wind power projects in Bijapur, Chitradurga & Belgaum districts over the next five years. These are but a few mentions of the long list of investments being attracted by Karnataka.

The edge of Karnataka is of course the knowledge-based economy that it is along with having attained a well-rounded growth. It is driving domestic growth, crafting careers and creating wealth through a potent mix of resource-based, skill-based, technology-based and knowledge-based products and services. The state has a living tradition of employing technology to trace a steady growth curve across various sectors of the economy.

In these continuously altering economic realities, the state has also been responding quickly to the dynamic economic conditions, changing demands, changing technologies and continuously facilitating the industries to upgrade their technology, products and R&D to sustain the rising competition.

The result of this focus on knowledge and value creation is the envious figures that the state has achieved, like the GSDP of the state for 2011–12 is ̀ 4,65,552 crore at current prices contributing close to 5% of the country’s GDP. The state achieved a growth rate of 5.5% in its GSDP in the same year. And the government’s vision is to double the GDP of the state by 2020.

As we salute the success of Karnataka, SEARCH wishes all its readers a very special Karnataka Rajyothsova. Keep the flag of Karnataka flying high!

FFLOURISHING ON STRONG FOUNDATIONS

Archana [email protected]

5EDITORIALSEARCH - Supplement November 2012

EDITORIAL5

CONTENTS

SEZs & CLUSTERSBasking In The Glory Of Industrialisation

16

R&D AND INNOVATION HOTSPOTLeading From The Front

12

FIRSTS FOR KARNATAKABoosting India’s Growth Prospects

8

SUCCESS SECRETSSUCCESS SECRETS1010

AVIATION AVENUESKarnataka: The Budding Aerospace Hub

20

GLOBAL INVESTORS MEET 2012 The GIMnastics Of Karnataka’s Growth

17

INVESTMENTSFostering Karnataka’s Industrial Progress

24PRODUCT UPDATE31

‘Our Vision Is To Double The GDP Of The State By 2020’Murugesh R Nirani,Hon’ble Minister for Large- and Medium-scale Industries, Government of Karnataka

INDUSTRY WISH LISTInvestors’ Confi dence Gains Momentum27

‘Karnataka Will Remain The Knowledge Hub Of The Country’SA Mohan,CEO, Maini Materials Movement

29

‘Karnataka’s Image Will Soon Change From Being An IT Hub To An Automotive Hub’Viraj Naidu,MD, Disa India

30

ADVERTISERS’ & PRODUCT INDEXAlphabetical Listing Of Products Presented In The Issue

34

Looking For A Specifi c Product?Searching and sourcing products were never so easy.

Just type SRCH (space) Product Name

and send it to 51818eg. SRCH Pump and send it to 51818

LSea

Ju

eg

Vision & Mission

Opinions & More

26

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8 FIRSTS FOR KARNATAKA SEARCH - Supplement November 2012

Karnataka leads the country in several fi elds, such as Information Technology (IT), nanotechnology and biotechnology, apart from being home to some of the largest public sector companies in India, such as Hindustan

Aeronautics Ltd. The state is a bright spot in today’s stagnant economy. It will further strengthen its pole position in the country with the various developments that are taking place for the fi rst time.

Boosting India’s growth prospects

Bengaluru has done it again; it will have India’s first

Information Technology Investment Region (ITIR)

for knowledge-based industries, including software and

hardware firms, with the entire supply chain.

The ITIR is projected to attract global investments to

the tune of `2 trillion as well as to create a million direct

jobs over the next 10 years.

A high-powered committee of the Ministry of

Communications and Information Technology has

approved the ITIR proposal and forwarded it to the Union

Cabinet for clearance.

The integrated region will be built under the Public

Private Partnership (PPP) model with joint investment by

the central and state governments near the international

airport in Bengaluru.

The State Government is planning to float a global

tender to select a developer for building the ITIR in

area spread over nearly 10,200 acre in two phases. Land

measuring 2,080 acre has already been identified for the

first phase and preliminary notification issued to farmers

for acquisition at the prevalent market rate.

The ‘knowledge park’ will be a self-sustainable

integrated investment region for setting up software firms,

back offices and a hardware park for electronics cluster,

including chip designing and manufacturing units, with

world-class infrastructure facilities.

The region will also have a residential township, an

airstrip, high-speed rail network, shopping plaza, hospitals,

schools & recreational facilities for the communities

residing there.

Bengaluru is all set to become India’s first and biggest

aerospace industry hub in the next five years. The

State Government will set up an aerospace park with

an investment of $10 billion near the Bengaluru

International Airport.

The state will soon announce its Aerospace Policy—the

first such policy by any state in India. MN Vidyashankar,

Principal Secretary for Industries and Commerce,

Karnataka Government, recently said, “Karnataka will

have the world’s biggest knowledge hub in Chitradurga.

Nearly 2,000 acre of land is being provided to IISc;

1,500 acre to ISRO; 2,000 acre to DRDO and 50 acre to

National Aeronautics in Chitradurga. It will also have a

manufacturing zone.”

The foundation stone of IFCI Financial City, India’s first

financial city, was recently laid by the former Hon’ble

Union Finance Minister Pranab Mukherjee, at Hardware

Park, Bagalur Road, Bengaluru.

The State Government has allotted 50 acre of land near

Bengaluru airport to IFCI Infrastructure Development

Ltd (IIDL) for this project, which is to be completed

in three years. IIDL is developing premium urban

infrastructure at the site in association with leading banks

and institutions. The project is being developed to serve as

a model for regional financial centres across the country.

IFCI Financial City at Bengaluru, which is

being developed at an investment of over `1,000

crore, would be a regional financial hub, thus further

strengthening Bengaluru’s pre-eminence in the national

economy.

The layout of the city is based on the Zen geomancy

concept with effective circulation and activity patterns.

Bengaluru to Get India’s First IT Investment Region

Karnataka to Set Up Aerospace Park with $10-billion Investment

IIDL Brings India’s First Financial City to Bengaluru

9FIRSTS FOR KARNATAKASEARCH - Supplement November 2012

Karnataka’s Kolar district houses India’s first 3-MW

solar power plant. Hon’ble Union Minister for New

and Renewable Energy Farooq Abdullah had recently

inaugurated the power plant.

While unveiling the plant at Yelesandra village

in Bangarpet taluk of the district, about 100 km from

Bengaluru, Abdullah said, “Solar energy is an inexhaustible

source of energy. It is one of the most promising and

non-conventional energy resources. Unlike fossil fuels and

nuclear power, it is also an environmentally clean source

of energy.”

The photovoltaic cell plant was built in 10 months

by Hyderabad-based Titan Energy Systems Ltd for the

state-run Karnataka Power Corporation Ltd (KPCL) at

a cost of `59 crore. It will generate four million units of

power per year.

The plant is spread over 15 acre of land and

consists of 13,500 solar panels to absorb sunlight as the

source of energy and convert it into electricity, which

is then transmitted to the control room through cables.

The Direct Current (DC) is again converted into

Alternating Current (AC) through 12 250-KW inverters

in the control room.

Though the solar power plant is clean and eco-

friendly, the upfront cost per MW is high at `15 crore,

as its panels are built with silica imported from the

photovoltaic technology leader Suniva, Inc, based in

Atlanta, the US.

To minimise the transmission and distribution losses,

KPCL will supply the solar power to nearly 500 pump sets

for use in the farmlands around the plant, which are till

now deprived of any irrigation facility.

The tail-end grid-connected solar photovoltaic plant is

a boon to farmers as it provides electricity to agricultural

activities during the daytime. The plant has been built to

operate for 25 years, with 10% degradation after 10 years

and 20% after 20 years.

When sunlight is diminished by an overcast sky, the

heat generated by the sun during the day is absorbed by

the solar panels through the thermal process.

The energy generated from the panels will vary from

4,000 units to 18,000 units per day depending on the

sunlight received through the seasons. KPCL is also

building two more solar plants with 3-MW capacity at

Itnal in Chikodi taluk in Begalum district and Yapaladynni

in Raichur district of North Karnataka.

India’s first biofuel station is expected to be commissioned

at Biofuel Park Campus near Madenur village on

Bangalore-Mangalore NH 48 in Hassan district by this

year end.

According to a Memorandum of Understanding

(MoU) signed between Biofuel Task Force and

Bharat Petroleum Corporation Ltd (BPCL), the latter

would set up the station at the park

and sell biodiesel. For every 10 litre

of conventional diesel, 0.5 litre of biodiesel has to be

added and supplied to the vehicles.

The University of Agricultural Sciences had set up

the park near Madenur in 2006 to popularise the use

of biofuel by encouraging the farmers to grow Neem

(Azadirachta Indica), Simarouba Glauca, Hippe, Honge

(Millettia Pinnata) and Surahomme.

If all goes well, Karnataka will soon be housing India’s first solar

city. Recently, the state’s Hon’ble Chief Minister Jagadish

Shettar, said that Karnataka is aiming to add 200 MW of

solar energy by 2016. He added, “The state has a capacity

ranging between 4.5 and 7 kWh per sqm. We are looking at

establishing the country’s first solar city in Karnataka.

We shall adopt the Gujarat model of using irrigation canals

to install solar panels.”

India’s First 3-MW Solar Plant in Karnataka

Hassan to get India’s First Biofuel Station

Karnataka May Get Country’s First Solar City

Compiled by Nishi Rath

10 SUCCESS SECRETS SEARCH - Supplement November 2012

NISHI RATH

Karnataka is one of the fastest growing states of India. It has a vast and diversifi ed sectoral base. Known as the Silicon Valley of India, the state’s entrepreneurial spirit in innovations and R&D has been recognised all over the world. Its rich natural resources, proactive government, talented workforce and a strong economy have propelled the state on the path to become a preferred investment destination of the country. Narrating a brief growth story of this ‘Knowledge Hub’...

arnataka is one of India’s

leading industrial states,

contributing almost

8% to the national

manufacturing income.

While the state boasts of being the

aerospace hub of the country operating

on cutting-edge engineering and

IT capabilities, its garment sector,

dominated by small units, contributes

20% to the national output.

Being the eighth largest state of

India, Karnataka has contributed

significantly to the country’s rising

success. The state economy has a

sound base in its rich resources,

manufacturing expertise and proactive

government that have kept its growth

going in tough times.

THE KNOWLEDGE HUB Karnataka is also home to an

impressive number of education and

skill-development institutes and

organisations. It has one of the highest

number of medical colleges, third-

highest number of engineering colleges

and the highest number of industrial

training institutes in the country. It is

also home to several premier research

institutes.

The state tops the country when

it comes to labour supply ecosystem,

providing access to a vast pool of

skilled manpower as well as research,

engineering and design capabilities

in all branches of frontier sciences.

The state is rightly known as the

‘Knowledge Hub of Asia’.

SECTORS LEADING THE GROWTH STORYAutomobile and auto component:

The southern state is a hub for the

automotive industry with the presence

of major companies such as Toyota

Kirloskar, Volvo, TVS Motors, Tata

Marcopolo, L&T Komatsu, Mahindra

Reva, BOSCH, Siemens and JK Tyres.

The industrial valve cluster and auto

component cluster make Karnataka

the preferred investment destination

for automotive players.

Aerospace: Karnataka is the preferred

choice for global players in the

aerospace research and development.

Extensive experience and inherent

competencies in aerospace make

the state the producer of more than

a quarter of India’s aircraft and

spacecraft. Global giants such as

Boeing Research & Technology Centre

and Airbus Engineering Centre have

made Karnataka their base. Karnataka

also boasts of having India’s top R&D

centres in aerospace & defence, the

Indian Space Research Organisation

(ISRO) and the Defence Research and

Development Organisation (DRDO).

Chemicals & petrochemicals: Karnataka

is fast positioning itself as one of the

major growth centres of the chemical

industry with the presence of around

500 companies, including leading

players like MRPL, BASF, Mangalore

K

11SUCCESS SECRETS SEARCH - Supplement November 2012

Chemicals & Fertilizers and United

Phosphorus. It can be said chemicals

& petrochemicals is one of the growing

sectors of Karnataka and is set to gain

momentum in the next few years.

Mangalore Refinery and

Petrochemicals Ltd (MRPL) is the

state’s leading player, and public-sector

refinery. The presence of a dedicated

petrochemical SEZ in Mangalore will

further catalyse the growth.

Energy: Asia’s first major hydroelectric

power generating station was set up

in Karnataka in 1902. At present,

Karnataka is the third-largest

generator of renewable energy in India.

It also has the highest wind energy

potential in the country at 12,950

MW. Thermal and hydropower have

been the main sources of electricity

in the state. At present, renewable

sources are contributing to nearly 24%

of the state’s installed capacity. The

renewable energy potential is estimated

at 28 GW, primarily from wind, small

hydropower units, co-generation and

biomass sectors. Until now, 2,106

MW of wind energy, 88.5 MW

of biomass energy, 948.7 MW of

bagasse co-generation, 646 MW small

hydropower generation and 14 MW

of solar energy have been explored,

implying the fact that a large potential

remains to be tapped. Further, the

government has allotted projects of

17,278 MW, amounting to nearly

60% of the full potential. In addition,

the Renewable Energy Policy 2009–14

and Solar Policy 2011–16 offer various

attractive incentives to the private

players.

Information Technology (IT): Around

80% of global IT companies have

based their India operations and R&D

centres in Bengaluru. Bengaluru is the

fourth-largest technology cluster in

the world after Silicon Valley, Boston

and London. The state capital also

boasts of the highest number of R&D

centres in India. As part of the Union

Government’s Special Investment

Region Scheme, the IT Investment

Region (ITIR) Scheme has come

across as a much-needed power

booster for the industry. The mega

project, which is expected to come up

in Devanahalli, requires 10,200 acre of

land and the State Government expects

`98,000 crore investments to come in

a phased manner. Under the scheme,

the Union Government will provide

grants for developing infrastructure

such as electricity, roads, sewerage and

water supply in the Special Investment

Regions (SIRs). While these regions

themselves cannot avail tax benefits,

SEZs within them can.

INDUSTRY-FRIENDLY POLICIES The State Government has put in

place the all-new Karnataka State

Industrial Policy 2009–14, with various

improvements over the previous

one of 2006–11. One main policy

measure intended to smoothen the

path for investors is the exclusive land

acquisition policy and the development

of a Land Bank—each district will have

2,000–3,000 acre that will be acquired

by the Karnataka Industries Areas

Development Board for industrial

development. The Suvarna Karnataka

Development Corridor Initiative has

also been planned to connect cities

in all districts through a network of

highways, with cluster development in

designated zones.

This is not all; sector-specific

industrial zones and SEZs have been

identified that match the natural

resources and capabilities of a district

with industry requirements. The

policy will lay special focus on skill

development in order to enhance the

generation of technical manpower

and ensure that Karnataka’s lead in

providing skilled workforce is sustained.

The policy also focusses on the

creation of world-class infrastructure

through investments in power, roads,

water, warehouse and logistics facilities

and connectivity through rails & ports,

among others have been planned to

facilitate the entry of investors.

ON A GLORIOUS GROWTH PATH Karnataka is well set to lead the

nation, showing the way through

effective public private partnership. For

investors in any field, the two primary

inputs that are vital for production

are land and labour; Karnataka leads

the country in both. Karnataka’s

new Industrial Policy 2009–14 has

provided for 50,000 acre of land across

five industrial corridors to facilitate

project implementation, especially for

large projects facing land acquisition

issues in other states.

Though Karnataka at the beginning

represented off-shoring of low-end

services in the BPO sector, the latent

strengths of the state have made it the

first-stop destination for cutting-edge

technology research and manufacturing

centres of global majors.

[email protected]

(With inputs from the Government of

Karnataka)

Largest biotechnology hub of India: The state hosts 195 of India’s 340 biotech companies

Largest software exporter of the country–$21.95 billion (FY2010–11)

Largest number of medical (114) and engineering (187) institutes in India

Largest producer of coffee and cocoa in the country

Highest wind energy potential in India at 12,950 MW

Leading provider in healthcare with world-class facilities and super-specialty hospitals

Producer of more than a quarter of India’s aircraft and spacecraft

First Aircraft Manufacturing Unit First Space Research Centre First Institute of Biotech &

Bioinformatics First Institute of Information

Technology First International Technology

Park First Industrial Policy

LEADING THE WAY

12 R&D AND INNOVATION HOTSPOT SEARCH - Supplement November 2012

he year 2011, was an

enthusiastic year for the

R&D sector globally.

While R&D investments

grew at a rate of 8.2%,

the global net sales were surprisingly

better at 13.55%. The contribution

of North America, the EU and Asia-

Pacific in R&D were 36%, 34% and

7%, respectively. Certainly Asia’s

contribution is not satisfactory, if not

frustrating, owing to its better growth

rate. Coming to India, with 2,20,000

R&D people, it witnesses the presence

of one-third of the global Top 1,000

R&D players, who have already

invested $7–8 billion in India for the

same. Bengaluru, known for its R&D

hub, shares 50% of those investments.

The major R&D investments, here

have been done in the sectors such

as IT, semiconductor, electrical/

electronic equipment, biotechnology,

drug & pharma, telecom, aerospace

and automotive. The first MNCs’

R&D centre started in 1984 with

Texas Instruments (TI) setting up its

first R&D centre in Bengaluru— much

before China, when Motorola began

an R&D trend offshoring there in the

1990s. Bengaluru is leveraged with 50%

of the total foreign R&D centres in

India compared to the 17.3% of DNCR

and 11.3% of Mumbai.

STRONG KNOWLEDGE SUPPLY CHAINA better knowledge supply chain

maintains the right balance between

the two strategies, viz., knowledge

augmenting and knowledge exploiting.

Industries prefer knowledge

augmenting as basic resource for their

R&D centre establishment. According

to a case study by IIMA team, “It’s

not like North India cannot provide

knowledge augmenting; in fact,

DNCR provides better skilled brain

availability than South India, but their

higher rate of brain drain makes the

task of knowledge augmenting more

difficult and unstable, which is not

seen in the south.” Viraj Naidu, MD,

Disa India, informs, “Investments in

R&D project in Karnataka, particularly

in and around Bengaluru, have been

huge. This, in a way, is directly related

to IT set-ups—a clear indicator of how

the state is the ‘best’ in comparison to

the rest of the country.”

FDI IN R&DFDI inflows are the biggest

components of external financing for

developing countries. Since 1991,

India, in order to better compete

on the international FDI front, has

undertaken reforms to liberalise its

foreign trade policy and simplify its

FDI procedures, encouraging MNCs

to have their own or supported R&D

centres in India to promote localised

technology and hence, their products.

As a result, Microsoft, Intel, IBM,

Cisco Systems, Adobe and Oracle

have established their R&D centres in

Bengaluru along with the electronics

giants like Hewlett Packard, Dell,

GE, Texas Instruments and so on.

Even though as per the patents and

investments, PSUs or government-

associated universities or research

institutes still hold the lead position,

foreign companies’ R&D centres and

investments in the state have presently

risen from 14% (2002) to 38%. The

curve is further expected to continue to

rise with the same magnitude.

Why has the state attracted more

than 50% of FDI in the R&D

sector? Ram Kerur, MD, Sunlux

Technologies Pvt Ltd & President,

ISA Bangalore, explains, “The local IT

and engineering companies provide a

SUPRITA ANUPAM

Being the Silicon Valley of India, Bengaluru along with its outskirts has pioneered itself as the R&D hub of not only India, but also the Asia Pacifi c. The state, accounting for 40% of the software R&D exports, compared to the whole country is the biggest biotechnology and aerospace R&D hub in India.

T

Leading fromLeading fromthe Frontthe Front

14 R&D AND INNOVATION HOTSPOT SEARCH - Supplement November 2012

good ecosystem for such centres apart

from the favourable weather conditions

and good talent. The cosmopolitan

offers social acceptance and provides a

safe environment; these are the major

factors that attract the best talent in

India and from abroad. Furthermore,

the existing public sectors in different

domains (from aircraft to electronics)

have provided a good training ground

for building talent.”

Zahid Hussain, VP – Engineering,

Brocade, avers, “In Bengaluru, we

are able to find outstanding

engineering talent with the right

level of experience and expertise

to develop our next-generation

technologies; together with developers

at existing Brocade R&D centres

located throughout North America,

Israel and China. The Bengaluru

team will drive the development of

new technology solutions designed

to enable companies to connect and

manage data more efficiently and

reliably.”

R&D SECTORSThe major investments have been

proposed or signed under MoU are

in aerospace, biotechnogy, IT and

machine tools. Aside from Bengaluru,

the cities which have been proposed

to have R&D parks are Mangalore,

Dakshin Kannada, Hubli, Dharwad,

Hassan, Uttar Kannada, Belgaum,

Devangere, Chikmanglur, Gulbarg,

Bellary, Mysore and Udupi. Let’s see

R&D developments and investments

in other sectors having significant

presence in the state…

Aerospace and AvionicsThe State Government has proposed

a Technology Innovation Centre for

aerospace at the Bangalore Aerospace

Park to provide R&D support,

particularly to SMEs in this sector.

The government plans to approach

majors like ISRO, USIBC, NAL,

EADS, Honeywell and others to

become stakeholders in the Technology

Innovation Centre. With regards to the

State Government’s policy to promote

R&D in avionics, Maheshwar Rao,

IAS, Commissioner of Industries,

Government of Karnataka, explains,

“The Government of Karnataka has

recognised the aerospace and avionic

sector as one of the thrust sectors

for industrial investment promotion

in Karnataka. The state has an ideal

ecosystem for this sector and we want

to cash in on this not only to sustain

Karnataka’s position as the country’s

aviation hub, but also to encourage and

support MSMEs in the sector.”

So far, Hindustan Aeronautics

Ltd, National Aerospace Laboratories,

Indian Space Research Organisation,

Defence Research and Development

Organisation, Aeronautics Development

Authority, Aeronautics Development

Establishment and Center for Artificial

Intelligence & Robotics have been the

centre of R&D in Avionics, but as

recommended by the Joint Task Force,

the government is also planning to set

up an aerospace university in the near

future to cater to the human resources

for the aviation sector.

AutomobileWith Tata Motors having their R&D

centre in Dharwad, Toyota, MICO,

Reva, and Volvo in Bengaluru, TVS in

Hosur & Mysore, it is too early to say

that the state will assume Chennai’s

position of ‘Detroit of India’, but surely

the state will create a niche for itself

in the automobile sector. Meanwhile,

GM also plans to invest $60 million

to set up an R&D centre in Bengaluru

and Honda & Mitsubishi have plans to

come up with big investments as well.

BiotechnologyWith an investment of $104 million,

Alexandria Knowledge Park has been

developed based on international-

standard biotech parks. Both

Alexandria Knowledge Park and

Bangalore Helix (being developed)

has made the city and state the No. 1

R&D and biotechnology hub.

The sectors lagging in the state

such as agriculture, F&V, renewable

energy/power have not shared the same

competition in their R&D division.

The innovation performance is measured by the Economist Intelligence Unit’s (EIU’s) innovation index, which is based on the country/state’s innovation output as measured by the number of patents granted by the patent offi ce, and innovation inputs, based on the Economist Intelligence Unit’s Business Environment Ranking (BER) model. Following are the few strengths and weaknesses of the state when talked about the innovation performance by the state: Strength #1: A Network of Government-supported R&D Laboratories with Expertise in a Variety of DisciplinesWeakness #1: Lack of Dynamism of the Government R&D SystemStrength #2: Large Education Capacity with Several World-class InstitutionsWeakness #2: Quality of the Higher Education SystemStrength #3: Large Private Sector Industrial BaseWeakness #3: Absence of a Vibrant High-technology SectorStrength #4: Government Recognition of the Importance of Industrial R&DWeakness #4: Limited Impact of Government Support ProgrammesStrength #5: Infl uence of Scientists in Policy-makingWeakness #5: The Science-Technology DivideStrength #6: Changes to Patent Laws & Increased Foreign Direct Investment in R&DWeakness #6: Low Magnitude of Spillovers of Foreign R&D InvestmentWeakness #7: Other Barriers to Innovation (Corruption/slow infra projects)

With inputs from Rishikesha T Krishnan, Professor, Corporate Strategy & Policy Area, Indian Institute of Management (IIM), Bengaluru

STRENGTHS & WEAKNESSES OF THE INNOVATION SYSTEM

16 SEZs & CLUSTERS SEARCH - Supplement November 2012

NISHI RATH

Basking in the GloryBasking in the Glory of Industrialisation

hile industrial activity

is spread across all the

districts in Karnataka,

there are some that have

shown immense potential

in the recent times. These include:

Yadgir: The emerging business

destination is around 426 km away

from Bengaluru. What was once known

as one of the most backward districts,

is now become one of the most sought

after business districts in the state.

According to Hon’ble Karnataka Small

Scale Industries Minister, Narsimha

Naik, there are two major factors

that have encouraged investors to

flock to Yadgir. First, the government

has declared huge tax incentives like

investment subsidy and sales tax

exemption, among others, for those

who set up their base in this district.

Secondly, Yadgir’s is strategically

located, 160 km from River Krishna

and River Bhima also runs through the

district. However, the land is largely

not irrigated, and hence, there is plenty

of space for setting up large industries.

What can be seen as an added advantage

is the availability of cheap labour.

During 2001 and 2012, around 11

small industries have been set up in

the district entailing an investment of

`377 crore. Between 2010 and 2012,

at least 41 new industrial units had

proposed to come up in the district

at a cumulative investment between

`20,000crore and `30,000 crore.

Raichur: Located 200 km from

Hyderabad, Raichur presents potential

for setting up industries across the

district. Raichur is located in the

Eastern part of Karnataka and is

divided into five talukas—Devadurga,

Lingasugur, Manvi, Raichur and

Sindhanur. The district is considered

an important commercial and industrial

centre. Famously known as the ‘Rice

Bowl of India’, it is also well known

for its agricultural and horticultural

produce. But, of late, the district has

become an emerging hub for cold

storage infrastructure. Sectors like steel

and mineral, food processing, building

materials, mechanical, mining and IT

have seen growth in this region. Some

of the prominent players who have made

their presence felt here include Mysore

Petrochemicals Ltd, Hutti Gold Mines

Company Ltd, Raichur Thermal Power

Corporation Ltd, Surana Industries Ltd

and Shilpa Medicare Ltd.

Shimoga: Majority of investments

in this region come from food &

beverages, engineering and mechanical

products. The foundry units in the

district manufacturing components

for automobile industry are known for

their quality. This growing industrial

district has been attracting companies

from IT/BT, food processing & agro,

automobile, general engineering and

steel sector.

Belgaum: It is the fourth largest city

in Karnataka and ranks second in

overall exports after Bengaluru. Known

as the foundry hub of Karnataka, it

has also emerged as an important

centre for manufacturing of heavy

machine tools. The district has got an

established trade centre for food grains,

sugarcane, cotton, tobacco, oilseed and

milk products. Belgaum has 33 large-

and medium-scale industries with an

aggregate investment of `2,850 in large-

and medium-scale industries and an

aggregate investment of `775.08 crore

in small-scale industries. According to

experts, it is also a fast emerging hub

for storage/cold storage infrastructure.

THE GLOBAL FACE OF INDIABrand Bengaluru has already become

synonymous with cost-effective and

quality solutions all over the world.

But there are other regions that are on

the verge of making it big. The state

economy has a sound base in its rich

resources, manufacturing expertise and

proactive government policies that

have kept the growth going in tough

times. The state indicates its ‘hunger’ to

achieve milestones in development and

promises there is more.

[email protected]

W

The state’s industrial profi le, in terms of growth in production, investment approvals, et al, is well-charted, from manufacturing units in various sectors, to district-wise distribution of industrial activity. Here’s taking a look at some of these regions that have seen huge growth in the last few years and have the potential to make it big in the future...

17GLOBAL INVESTORS MEET 2012SEARCH - Supplement November 2012

a r n a t a k a , s i n c e

liberalisation in 1991,

has been spearheading

the growth of the Indian

industry, particularly in

terms of high-tech industries, such as

electrical and electronics, Information

and Communication Technology

(ICT), biotechnology and, more recent,

in terms of nanotechnology. Industries

contributed 29.6% in the state’s GSDP

in 2010–11. The agriculture sector is

expected to grow by 5.9% in 2010–11,

as against 4.3% during 2009–10. After

a spectacular recovery from negative

growth rate of 2.2% in 2008–09 to a

positive growth rate of 9.3% in 2009–

10, the growth rate of the secondary

sector (comprising manufacturing,

construction and electricity, gas and

water supply) moved to 7% during

2010–11. A remarkable increase

in the tertiary sector from 3.7% in

2009–10 to 9.7% (especially in real

estate, ownership of dwellings and

business services from 2.1% to 8.9%)

in 2010–11 is a key driver of 8.2%

growth of GSDP in 2010–11, i.e.,

from `2,51,268 crore in 2009–10 to

`2,71,956 crore in 2010–11.

GIM FACTORGrowth needs to be supported in

numbers, during Global Investors

Meet (GIM) 2010—38 MoUs with

expected investments worth `44,152

crore were signed; some of which have

already been invested. GIM has been

the prime factor in making the state

No. 1 in the biotechnology sector.

GIM 2010 attracted investment

worth `59,081.8 crore through

15 projects in the pharmaceuticals

sector and `650 crore through two

projects in biotechnology. With GIM

focussing on almost all the major

sectors, viz., aerospace, automobile,

biotechnology, energy, gas & pipeline,

IT, infrastructure, food and beverage,

and so on, the state has attracted some

of the biggest global players such as

Arcelor Mittal Ltd, POSCO, HMFI

and Bharat Forge Ltd. However,

timely planning and execution are

very important to transform the

global interest into real investment.

Subrahmanya Kumar, Country

Manager, Tyrolit India Superabrasive

Tools, avers, “Political instability, delay

in planning and execution are affecting

the GIM success saga. A number of

investment promises made in 2010

has not seen light of day, but the

projects announced by Arcelor Mittal

and POSCO are yet to take off. So,

GIM alone cannot do much, it needs

practical and warm support from the

State Government as well.” According

to SA Mohan, CEO, Maini Materials

Movement Pvt Ltd, “The follow-on

meetings post GIM are crucial between

DEBARATI BASU & SUPRITA ANUPAM

The GiMnastics ofKarnataka’s Growth

Established in 2010, GIM has propelled the state industry and the infrastructure to some extent since then. GIM, despite criticism, has managed to revive the charted long-term development plan for Karnataka including its demography, economy, human development, sectoral composition of GSDP and other parameters. A report...

KHon’ble Minister for Large- and Medium-scale Industries, Government of Karnataka, Murugesh Nirani (extreme left) and other dignataries on the dias at the GIM 2012

18 GLOBAL INVESTORS MEET 2012 SEARCH - Supplement November 2012

the industry and the state to realise the

investments garnered during the event.

I am confident that all parties involved

will drive this in mutual interest.”

ALLURING GLOBAL ATTENTION: GIM 2012 AT A GLANCE The inundating growth of Karnataka

has brought it at the centre of global

attention. Amid the opportunities

that the state offers, GIM 2012—

the flagship event of the Karnataka

Government—magnified the potential

and attracted an investment of `7.6

lakh crore in just two days from all

corners of the globe.

GIM 2012 promised to open the

doors for the world to the land of

opportunities; that is precisely what

it did. The two-day expo saw the

participation of over 462 exhibitors

from more than 13 countries including

Japan, Germany, Mexico, Italy,

Canada, the UK and Taiwan. Over nine

states from India, including Madhya

Pradesh, Bihar, Rajasthan, Kerala,

Gujarat, Chhattisgarh and Jharkhand

also showed their enthusiasm to be

a part of the burgeoning growth of

Karnataka. Apart from 130 PSUs and

large enterprises, over 300 small and

micro enterprises also took part in this

mega event. The then Chief Minister

of Karnataka DV Sadananda Gowda,

while addressing the exhibitors, said,

“GIM has been organised as a focussed

endeavour to realise Karnataka’s vision

of achieving sustainable economic

development, increase in employment,

better livelihood, balanced regional

development and environmentally

sustainable long-term development,

as outlined in our Vision 2020. I am

happy to say that with the success

of GIM 2012, we are on the right

track. We look forward to strengthen

partnerships with our investors in our

mutual quest to achieve enhanced

and wide-ranging interactions and

initiatives in the future.”

The expo focussed on a wide range

of upcoming sectors like aerospace,

automobiles, biotechnology, chemicals

& petrochemicals, education, energy,

food processing, health, infrastructure,

IT, minerals, textiles and tourism.

Talking about the achievement

of the expo, Hon’ble Minister for

Large- and Medium-scale Industries,

Government of Karnataka, Murugesh

Nirani said, “Going by the tremendous

success of GIM 2012, we have proved

that Karnataka is the most preferred

destination not only in the country,

but also in the world.”

He added that the State Government

has launched innovative policies

under which, attractive incentives

across a wide variety of sectors have

been offered to investors to create

an enabling policy environment and

address the varied needs of industry

in the state. The government is also

putting in place policies to facilitate

investment in the state.

The draft policies that are ready

for release include Infrastructure

Bill, Special investment Region

Act, Karnataka State Housing

Policy, and other policies for

Automobile, Aerospace, Solar and

Pharma Sector.

By the end of the show, GIM 2012

wrapped up the edition by signing

730 MoUs across several sectors for

investments. With the investment

of over `7.6 lakh crore, the state has

generated the potential to offer more

than 15 lakh jobs. Along with this,

`1.68 lakh crore of investment was

received as registration of interest for

the infrastructure sector. The event

buzzed with the participation of over

40,000 visitors during the show.

[email protected]

MoUs/EoIs : (712) `6.58 lakh crore

Industry RoIs: (18) `30,000 crore SME MoUs: (6,800) `71,000

crore Infrastructure RoIs: (324) `1.68

lakh crore

INVESTMENT IN NUMBERS: GIM 2012

The two-day expo saw the participation of over 462 exhibitors from more than 13 countries.

The expo focussed on a wide range of upcoming sectors like aerospace, automobiles, biotechnology, chemicals & petrochemicals, education, etc.

20 AVIATION AVENUES SEARCH - Supplement November 2012

ith the establishment of

Hindustan Aeronautics

Ltd (HAL) in Bangalore

in 1940, Karnataka is

regarded as a pioneer in

the aerospace industry. The state is

positioned as an aerospace destination

due to the presence of numerous

aerospace companies and Public

Sector Units (PSUs) engaged in

manufacturing, design & development

and MRO. In addition, several

educational, scientific and technical

educational institutions are fostering

domain expertise in IT, engineering

and design skills that can be leveraged

by aerospace majors. Selected

advantages that Karnataka offers as a

hub for aerospace activities include:

Presence of large defence PSUs,

scientific and technical institutes

Deep aerospace expertise—a

network of 2,000 SMEs that do

niche subcontracting work for the

DPSUs

Information Technology (IT),

design and engineering expertise

Manufacturing expertise

Proximity to vendor base

Government support

Opportunity for related services like

ground handling, and the

manufacture of ground support

equipment

Other advantages regarding location,

excellent telecommunications

networks, etc.

INVESTMENT DESTINATION FOR AEROSPACE ACTIVITIESThe existing supply chain developed by

old-economy aerospace and engineering

firms, an investor-friendly government

with simplified procedures and fast-

track business approvals through single

window clearance mechanism combine

to make Karnataka a very attractive

destination for the industry. The state

is well positioned to become a hub for

the complete aerospace value chain:

Karnataka as a manufacturing hub:

With the headquarters and

laboratories of HAL in the capital

city of Bangalore, Karnataka has

always been a pioneer in developing

new aircraft and helicopters for the

Indian defence & domestic civilian

use. To augment this capability and

to exploit its potential in the

international market, the State

Government has planned an

aerospace Special Economic Zone

(SEZ) at Devanahalli, which is

close to the new Bangalore

International Airport.

Karnataka as a MRO hub: Currently,

the overhaul of some of the defence

aircraft in India is almost wholly

carried out by HAL. The Indian

MRO industry faces competition

from Southeast Asian countries,

particularly Singapore. Despite this,

the MRO segment has been growing

with new investments happening

particularly at Bangalore. Large

MRO companies are enhancing

their presence in Karnataka.

Karnataka as an aerospace hub for IT

design and engineering services: As the

Silicon Valley of India, Bangalore

presents the highest concentration

of highly mature IT and engineering

services firms. Local software majors

like HCL, Infosys and Wipro have

been serving clients in the global

aviation and aerospace industry for

years. Global leaders in aerospace

have also set up their technology and

engineering services support centres

in Bangalore.

Karnataka as an aerospace hub for

R&D and simulation: With top

technological innovations at its

disposal, Bangalore is rapidly

becoming an aviation simulation and

R&D hub. Karnataka is an attractive

destination for simulation and R&D

due to its inherent advantages of a

large number of highly qualified low

cost engineers & scientists.

Simulation and high-end research

has been the forte of government-

owned organisations based in

Bangalore. Some leading aerospace

companies have engaged with their

Indian counterparts to enhance their

W

The existing supply chain developed by old-economy aerospace and engineering fi rms, investor-friendly government with simplifi ed procedures, and fast-track business approvals through single window clearance mechanism make

Karnataka a very attractive destination for the industry. Despite some challenges related to infrastructure, Karnataka still provides the best opportunity for global investors.

Karnataka: The Budding Aerospace Hub

21AVIATION AVENUESSEARCH - Supplement November 2012

aerospace simulation and R&D

capabilities by establishing facilities

in Karnataka.

ISSUES TO ADDRESSTalent and manpower cost

competitiveness, location-specific

advantages & the presence of specialist

capabilities make Karnataka a global/

regional hub for manufacturing and

for MRO activities. However, some

challenges facing the state include:

Bangalore faces competition from

other cities, such as Hyderabad,

Chennai and Nagpur, in the area of

aerospace manufacturing. These

cities are actively promoting

aerospace SEZs and are trying to

attract foreign investment.

Karnataka can showcase multiple

destinations within the state as hubs

for activities in the aerospace value

chain, thereby assuming a larger

share of potential business.

Karnataka has the advantage that it

can project multiple cities as

aerospace hubs.

Infrastructure is a key challenge in

Karnataka. While infrastructure

facilities have improved, there is a

need to do more and develop more

robust infrastructure, i.e., availability

of land, quality power and water.

Also, the Land Acquisition Act

makes it somewhat time-consuming

for businesses to acquire land;

streamlining land acquisition

processes would be appreciated by

the industry.

An issue facing the industry

(particularly the MRO sector) is

shortage of land. MRO units should

be located close to airports. That

said, the land acquisition process is

time-consuming.

AEROSPACE CLUSTERS IN KARNATAKAWanting to harness the potential of

the state and going a step further than

investing in captive centres, QuEST

established an SEZ in Belgaum.

This SEZ will help to develop an

aerospace cluster in the state. Already

operational, this SEZ will enable many

companies to further leverage expertise

in manufacturing, MRO and R&D.

At the inauguration of the SEZ, the

then Karnataka Chief Minister BS

Yeddyurappa said, “The QuEST

Global SEZ in Belgaum has opened

up newer avenues to attract foreign

investment in the manufacturing space.

We are now poised to offer expertise

through competent local talent and

corporate commitment.”

SEZ Particulars- Formally inaugurated in

November 2009 to focus on

aerospace components and sub-

systems by building a precision

engineering and manufacturing

end-to-end ecosystem (supply

chain cluster)

- Spread over 300 acre, it currently

houses an engineering services

facility, a precision machining

facility and a sheet metal facility.

- Infrastructure includes roads in

and around the zone, a metal

road for smooth movement

of both car and cargo, a four-

lane road to connect the zone

with NH-4, a sewage system

connected to a sewage treatment

plant and a power plant.

Selected Units: Selected global

corporations establishing units

within the SEZ include SABCA,

Magellan Aerospace and Farinia SA

- SABCA will manufacture

metallic parts for Airbus aircraft

in its Belgaum unit. Daniel

Blondeel, CEO, SABCA, said,

“The SEZ can take on start-to-

finish projects and offers many

advantages in the manufacturing

space.”

- Magellan will set up a facility

to manufacture components and

sub-assemblies for aero engines.

Konrad Hahnelt, VP, Magellan,

said, “The location of the SEZ

has increased our operations

efficiency.”

- Foundry and forging major

Farinia will establish an

aerospace forging facility.

Benefits to Local Economy- Aravind Melligeri, Chairman &

Co-Founder, QuEST Global,

said, “The initial investment

for the SEZ project is `150

crore. We are looking forward

to creating more than 7,000 jobs

locally and infusing US$500

million into the economy in the

next 10 years.”

- The SEZ will generate `2,500

crore of aerospace-related

business in 10 years.

- The State Government plans to

establish an aerospace industrial

park near the international airport

at Devanhalli. “We have acquired

about 1,000 acre of land adjacent

to the new airport to build

world-class infrastructure for the

aerospace industry. About 250

acre of land will be earmarked

for an SEZ in the aerospace

hub. The aerospace park is being

located adjacent to a 1,000-acre

electronic hardware park and a

1,000-acre software park, which

will enable the aerospace industry

to leverage the strengths of the

IT sector,” said State Chief

Secretary SV Ranganath.

Aero University- The State Government plans to

establish an Aerospace University

with an aim to improve the

quality of desired talent in the

state. This will help boost

employment besides providing an

overall lift to the local economy.

MANUFACTURING & MROKarnataka provided a balanced

ecosystem of manufacturing &

services companies. While many large

firms like Bharat Earth Movers Ltd,

Robert-Bosch International and Volvo

India Ltd operate from Bangalore,

other new companies are establishing

operations in the city’s outskirts, in key

industrial belts surrounding Bangalore

and in north Karnataka. The growth

of other allied industries has helped

22 AVIATION AVENUES SEARCH - Supplement November 2012

the aviation manufacturing industry

due to increasing maturity of suppliers

and economies of scale.

According to reports, India will

need over 900 commercial aircraft over

the next 20 years. MRO operations

are required to maintain the growing

fleet of aircraft for Indian carriers.

The opening up of Indian skies and

increasing recognition of the talent

pool in India has made the country

an attractive destination for MRO

services. India’s MRO industry earns

over US$1 billion in revenues and has

been growing at double-digit pace.

Currently, some defence aircraft in

India are being overhauled by HAL.

The Indian MRO industry faces

tough competition from countries, like

Singapore and Dubai. Despite this, the

MRO segment has been growing with

new investments, many occurring in

Bangalore. Selected initiatives by large

MRO companies to enhance their

footprint in Karnataka include:

HAL proposed to set up an MRO

unit with an initial investment of

`120 crore at the old Bangalore

airport owned by the company.

National Aviation Company of

India Ltd (NACIL) signed an

agreement with Airbus and

Bangalore-based Jupiter Aerospace

to form an MRO joint venture. The

joint venture is for MRO and life

cycle support of commercial aircraft.

Air Works India Engineering

Private Ltd plans to invest

approximately US$120 million over

the next three years to establish a

MRO centre near Bangalore.

IT, DESIGN & ENGINEERING SERVICESBangalore maintains the highest

concentration of highly mature IT

and engineering services firms. Local

software majors like QuEST, HCL,

Infosys, Tata Consultancy Services and

Wipro have been serving clients in the

global aviation and aerospace industry

for years. Global leaders in aerospace

have also established their technology

and engineering services support

centres in Bangalore. For example:

Infosys Technologies Ltd, another

major software firm, is a partner in

forward integration & helps build

aircraft components and systems for

customers, such as Boeing and

Airbus, through local vendors. In

addition to delivering software and

engineering services for aerospace

clients, the company is now part of

the product supply chain.

Wipro Ltd is another large software

firm that helps build electronic

warfare systems, radars, aviation

electronics and flight simulators

locally for US defence contractors,

such as Lockheed Martin. The

company is setting up dedicated

units for these systems and

anticipates larger revenues from

defence customers moving forward.

The company also maintains a tie-

up with Britain’s largest defence

manufacturer, BAE Systems, to

build sub-systems for aircraft engines

that power business jets.

HCL Technologies is also a leading

software firm with a good clientele

in engineering services for aviation

and aerospace sector. The company

is a strategic partner for Boeing’s

Dreamliner programme and is a

major player in the offshoring of

aerospace technological development

services. The company has also

augmented its aviation and aerospace

capability by its joint venture with

Smith’s Aerospace and by its

acquisition of Axon Consulting that

has strengths in aviation MRO.

R&D AND SIMULATIONIndia is an attractive destination for

simulation and R&D due to its

inherent advantages of a large number

of highly qualified, low-cost engineers

and scientists. Earlier, simulation and

high-end research was the forte of

government-owned organisations like

DRDO, GTRE, ISRO and CSIR (all

based in Bangalore). In the last decade,

the country has welcomed private

foreign investment in R&D with

government support and tax incentives.

Some leading aerospace companies

have engaged with their counterparts

in India to enhance their aerospace

simulation and R&D capabilities:

Airbus Engineering Centre in

Bangalore is the company’s high-

tech aircraft component

manufacturing facility that works

on the development of tools to

aircraft design and structural

analysis using software based

simulation, among other things.

CAE, a global leader in aviation

simulation products and training

services, made Karnataka its base in

India. It is operating from an owned

facility near the new Bangalore

international airport. The Airbus

A320 and Boeing 737 Level D full-

flight simulators in the CAE facility

are certified by India’s Directorate

General of Civil Aviation.

Boeing entered into agreements

with IISc, Wipro and HCL to

develop wireless and other network

technologies for aerospace related

applications.

Mahindra and Mahindra signed an

agreement for the design &

development of a new general

aviation aircraft with NAL, CSIR

and the Government of India.

The wind-tunnel testing centre at

NAL is the primary simulation

testing facility for aircraft engines in

India.

THE WAY AHEADAs a state, Karnataka has the resources

to be a centre of aerospace excellence/

cluster of creativity, where it can

endeavour to gain global notice for

programme management, engineering,

maintenance, material and information

systems support and offer overhaul

services to rotary and all fixed-wing

aircraft. Rationalisation of some features

of the existing policy regime will go a

long way in assisting indigenisation and

absorption of new technologies.

Courtesy: PwC

ADVERTORIAL

24 INVESTMENTS SEARCH - Supplement November 2012

Fostering Karnataka’s Industrial Progress The economic growth and fast development of any state depends on its industrial climate. The depiction of Karnataka as a knowledge hub and a rapidly growing economy is credited to its peaceful industrial scenario. Here’s taking a look at some of the major investments that are all set to take the state’s development to a new level…

TATA STEEL

Investment: `30,000 crore

Location: Haveri district

Project: Steel plant

Description: The 6 mtpa capacity plant will come up in Haveri district. Initially, Tata Metaliks Ltd had proposed to set up a 3 mt integrated steel plant at the same site with an investment of `15,000 crore. Tata Steel is one of the world’s top 10 steel producers. The combined group has an aggregate crude steel capacity of over 28 mt and around 80,000 employees across four continents.

BMM ISPAT Investment: `6,700 crore

Location: Hospet in in Bellary district

Project: Capacity expansion

Description: It is the second largest steel maker is Karnataka. The company has plans to more than double the capacity of its existing plant at Hospet from the current 2 mtpa to 5 mtpa by 2015. The company envisages an investment of `6,700 crore for this purpose, of which the promoters are bringing in `2,500 crore, while the balance `4,200 crore is debt financed by a consortium of 16 banks led by State Bank of India. The added capacity, adjacent to its existing facility, will focus on producing long products, alloy steel for the automobile sector and increasing captive power production to 675 MW from the 235 MW currently produced.

WELSPUN ENERGY


Location: Bijapur, Chitradurga & Belgaum districts

Project: Twin wind power

Description: The company will invest in developing two wind power projects in Karnataka over the next five years. Welspun Energy, a part of the $3.5-billion Welspun Group, signed initial agreements with the Karnataka Government for setting up 100 MW and 750 MW capacity wind power projects in the state a few months ago.

KIRLOSKAR TOYODA TEXTILE MACHINERY


Location: Kittur in Belgaum district

Project: Setting up an engine and a textile machinery unit

Description: The company has received clearance from the Karnataka Government to set up an engine and a textile machinery unit in Kittur in Belgaum district. The unit will generate over 1,200 jobs in the region.

25INVESTMENTSSEARCH - Supplement November 2012

ADITYA BIRLA GROUP


Location: Malkhed in Gulbarga district

Project: Cement plant

Description: The Group will invest in a 4 mt cement plant at Malkhed. It also plans to expand its aluminium plant in Belgaum from 2,000 tonne to 3,000 tonne with an investment of `700 crore.

TOYOTA

Investment: `900 crore

Location: Bengaluru


Description: The company, present in India through a joint venture with the Kirloskar Group, will be increasing the capacity of its plant in Bengaluru to 3.1 lakh units per annum by March next year from the present 2.1 lakh units. Most of these investments and increase in production would be to hike the capacity of Innova and Etios.

HUAWEI

Investment: $150 million

Location: Bengaluru

Project: R&D centre

Description: According to the company, the R&D centre will come up over 1 million sqft and would have the capacity to accommodate about 4,000 people. The development centre will cater to Huawei’s enterprise, telecom operators and cellphone business segments. The centre will work on NextGen smartphone handsets. The Indian centre will work on technologies that can increase battery life in smartphones.

Compiled by Nishi Rath & Deepa Sharma

FREUDENBERG

Investment: `130 crore

Location: Mysore


Description: Freudenberg Group plans to invest `130 crore by 2016 to expand its chemical specialities unit. The company plans to raise the capacity from 3,000 tonne per annum to 20,000 tonne per annum. The Germany-based company manufactures speciality lubricants, release agents and maintenance products for auto, energy and food industries under the brand names Klüber Lubrication, Chem-Trend and OKS.

26 VISION & MISSION SEARCH - Supplement November 2012

C“Our endeavour is to create an enabling environment and an ecosystem required for industrial development,”

affi rms Murugesh R Nirani, Hon’ble Minister for Large- and Medium-scale Industries, Government of Karnataka, during an exclusive interaction with Nishi Rath. Excerpts…

Our vision is to double the GDP of the state by 2020

OMPELLING KARNATAKAKarnataka has been a

pioneer in industrial

development and is

one of the top five

industrialised states of the country. The

state, known as the knowledge hub,

serves as an excellent base for human

resource. The state’s investor-friendly

policies, proactive government, good

infrastructure, quality power, peaceful

industrial relations and rich resources

are some of the factors that have been

attracting industries to set up base here.

GOVERNMENT INITIATIVESThe state has been at the forefront

when it comes to attracting

investments. In the recently

concluded Global Investors

Meet in June 2012, we were

able to receive investment

commitments to the tune

of `7.2 lakh crore. Our

endeavour is to create an

enabling environment and

an ecosystem required for

industrial development.

Many infrastructure

projects have been

taken up on a PPP

mode. Land being the

primary infrastructure

required to start

industries, we have

initiated a unique

programme of creating

‘Land bank’ wherein we

have identified about

1.2 lakh acre of land

suitable for industries.

We are also bringing

sectoral policies to

address the sector-

specific needs of the industries.

SECTORS DRIVING GROWTH AND THE ROLE OF SMEsKarnataka is strong when it comes to IT

& BT sectors. Apart from these, sectors

like energy, automobiles, aerospace,

food processing and tourism are also

driving growth. We are also focussing

on various new areas such as medical

instrumentation, nanotechnology and

agri-business among others. Coming

to SMEs, one can say that they play

a vital role in the economy because

of their employment potential. Our

focus is to encourage SMEs. The

New Industrial Policy brought by our

government offers attractive incentives

to the MSME sector.

THE INDUSTRIAL POLICY AND OVERALL INDUSTRIAL GROWTHThe Industrial Policy offers incentives

such as investment promotion subsidy

and exemption from stamp duty, among

others. These have turned out to be very

useful in encouraging SMEs. Further,

the policy offers interest-free loan on

VAT for large & mega projects, which

has attracted many leading companies

to the state. The state will also offer

special incentives over and above the

incentives envisaged in the industrial

policy for the projects above `250 crore

of investment on a case-to-case basis.

KARNATAKA, FIVE YEARS FROM NOW...The GSDP of the state for 2011–12

is `4,65,552 crore at current prices

contributing close to 5% of the

country’s GDP. The state achieved a

growth rate of 5.5% in its GSDP in

the same year. Our vision is to double

the GDP of the state by 2020.

27INDUSTRY WISH LISTSEARCH - Supplement November 2012

Today, Karnataka is known as India’s IT hub. The state has a highly developed aerospace industry in the country. Karnataka accounts for 65% of the country’s aerospace-related output and one in every three SMEs in this sector are headquartered in the state. Easy availability of skilled labour, along with well connected logistics system has played an important role in attracting investments into the state. However, establishment of single window approval mechanisms, improved power scenario, etc., will play a critical role in generating higher levels of investor confi dence.

ARINDAM GHOSH AND SUPRITA ANUPAM

Investors’ Confidence Gains Momentum

One of the major advantages of being in Karnataka is easy availability of skilled manpower. In addition, favourable

weather conditions across major parts of the state along with well-connected logistics systems have ensured that

many small sub-contractors and vendors are provided with an ideal environment for setting up large as well as small

businesses. Nonetheless, we wish to see a major change in terms of power, single window approval for starting new

enterprises, etc. Further, I believe that avoiding bureaucratic delays and further improvement in the quality of roads

and highways, will be critical for attracting many more large investments from companies. Such moves will result

in the creation of a fantastic industrial environment for the state. As one of the major companies in the state of

Karnataka for over 26 years, we have large investment plans especially in the state, as per which, we intend to start

two manufacturing units for our products & services business in Karnataka. These are in line with our plans to grow

10 times by 2015–16.

R.Sadananda Murthy, Founder & CEO, Sushma Industries

Karnataka, especially Bengaluru, has been the silicon valley of India for two decades now. Along with software, the

industrial zones in Bengaluru have grown manifold and now stretched to all directions of the city. This trend has also

extended to other small cities of the state like Tumkur, Mysore, Belgaum and Dharwad. RadCAM, being a software

distribution and services company, gives an edge to be in Bengaluru. The proposed developments in the north of

the city will add another dimension to Bengaluru’s manufacturing and software abilities in the next 5–10 years.

Manpower is never a problem in the city with weather as a plus and no cultural rifts. But I feel we need to change

two things in order to grow Bengaluru’s industrial environ, viz., power supply management and political instability.

Although Bengaluru has reasonably good power distribution, there is a scope for improve in some parts of the state.

Further, some of the policies and decisions are also dependent on a stable and focussed government. As part of our

expansion plans in the state, we are planning to have a state-of-the-art training centre in the north of Bengaluru. We

plan to be the No. 1 of sheet metal industry software providers and services company by 2015.

Shiddhalingesh Jolad, Managing Partner, RadCAM Software Solutions

The present difficulties Karnataka is facing are because of the bad planning done in 1990s—be it in the power sector,

road and rail network expansion. It may take another 5–6 years to set right these issues. Cheap political populism is

also responsible for present mess in the power sector. Land acquisition is a major headache not only in this state, but

in the entire nation. This state has riverwater sharing disputes with the neighbouring states. This is affecting the future

drinking water projects, water to new industries and townships, IT parks, etc. We cannot blame the state for this.

The Central Government shall bring comprehensive interstate river water sharing policy to help farmers, industries

in all states. The State Government should follow the Gujarat model in power distribution to ensure 24x7 power to

industries and domestic use.

Ganesha Prabhu, General Manager-FA, Factory Automation Division, Pepperl+Fuchs (India) Pvt Ltd

28 INDUSTRY WISH LIST SEARCH - Supplement November 2012

Much before Karnataka was anointed as the IT hub, it had been the pioneer and undisputed leader for the aerospace

industry in the country. This was largely due to establishment of Hindustan Aeronautics Ltd (HAL) in Bangalore

in 1940 and subsequently, other Defence Public Sector Units (DPSUs) and research institutes such as Bharat Earth

Movers Ltd (BEML), Bharat Electronics Ltd (BEL), Defence Research Development Organisation (DRDO),

Indian Space Research Organisation and Indian Institute of Science (IISc). As a result, numerous SMEs engaged

in manufacturing, design and development built their businesses around these organisations. Today, Karnataka

accounts for 65% of all aerospace-related output of the country and one in every three SMEs in this sector are

headquartered in Karnataka. Some of the biggest names in the industry have set up their manufacturing and services

facilities in the state. The state now has two very unique, but very closely associated industries that it intends to focus

on to project itself as an investor-friendly destination, viz., IT and aerospace.

Rajiv Chib, Associate Director- Aerospace and Defence, PwC India

EFD Induction Private Limited is a medium business based in Germany and Norway. Our strategic targets include

local design and manufacturing of high-tech equipment for the Indian market, supply of modules to our group

companies in Europe and engineering services to other EFD units. Based on these requirements, we found Bangalore

a good location to get skilled and dedicated employees, good suppliers for mechanical & electrical components and

an international airport for fast & reliable shipment. We need to supply world-class equipment to our customers in

India and abroad. Therefore, we need rapid improvements in vocational training to develop a workforce which can

assemble, test and service high-quality equipment. This training has to be driven by the industry and the government

has to provide the infrastructure for it. We would like a dual education system, which is a combination of practical

training in the factory and theoretical training in a school. EFD is already participating in a dual education programme

initiated by the Swiss Government. We are optimistic that we can get stronger in our present business areas and that

we can venture into new applications.

Hubert Reilard, MD, EFD Induction Private Limited & Chairman, Indo German Chamber of Commerce, Karnataka and Kerala

As we know, Bengaluru is also known as Silicon Valley of India, in my opinion, most of this business is coming from

IT and other sectors are yet to witness substantial growth. Other sectors such as biotechnology are growing rapidly.

The manufacturing sector is also strengthening its base in the state, but is far behind states like Gujarat. Karnataka has

many benefits over the other southern states such as conducive weather, availability of good & a wide variety of food.

It is more language-friendly, and has world-class institutes like IISc., IIIT, IIM, Raman Research Institute, TIFR,

CPRI, Jawaharlal Nehru Centre for Advanced Scientific Research and so on, which make the skilled manpower easily

available. Besides, people here are more accommodating. Based on these factors, growth is inevitable, but the state has

some major concerns to resolve, which might affect the growth in the near future.

Subrahmanyakumar, Country Manager,Tyrolit India Superabrasive Tools

State development has been good in terms of attracting the IT industry, but not in manufacturing to some extent.

Biotech and small scale industries have also contributed substantially to the state’s development. The cosmopolitan

offers social acceptance and provides a safe environment; these are the major factors that attract the best talent in India

and from abroad. Besides, infrastructure has been developed well in a few major cities of Karnataka and connectivity

to second-in-line-cities is still to improve.The major issue is the manpower cost, which is posing a big challenge to

be competitive.

Ram Kerur, MD, Sunlux Technologies Pvt Ltd& President, ISA Bangalore

29OPINIONS & MORESEARCH - Supplement November 2012

ARNATAKA: FROM ‘KNOWLEDGE HUB’ TO BEST ‘INVESTMENT HUB’ Karnataka, which houses

many world-class research

centres, has, for decades, led the country

as a ‘knowledge hub’. In addition, R&D

reconfirms the intrinsic strength of

Karnataka as a ‘knowledge hub’. This

has helped various industry segments,

particularly the IT industry, to establish

and build successful businesses. Besides,

the state is blessed with a good climate and

has hospitable people—important aspects

for drawing investments.

IMPEDIMENTS IN THIS IMAGE MAKEOVER The growth has led to serious infrastructure

bottlenecks, which have created challenges

for more investments. The State

Government must proactively prepare the

state for growth via proper long-range

planning/timely execution. With the

exception of Gujarat, almost all major states

lack infrastructure. Serious work needs to be

done by all stakeholders to address this issue

without any further delay. The government

needs to build world-class infrastructure

and prosperity will become incidental!

PRIME INDUSTRIES IN THE STATEIT industry has an ecosystem in Karnataka,

which has propelled growth consistently

over the past 10 years. Also, biotechnology

has gained dominance in the past five years

and will enjoy similar success. Moreover,

as Karnataka is perceived as a knowledge

hub, any segment that revolves around this

element at its core will flourish in this state.

ROLE OF GLOBAL INVESTMENT MEET IN THE STATE DEVELOPMENT The ‘follow-on’ meetings post GIM are

crucial between the industry and the state

to realise the investments garnered during

the event. I am confident that all the parties

involved will drive this in mutual interest.

KARNATAKA, FIVE YEARS FROM NOW…I expect to see Karnataka as a leading

knowledge hub. The state will dominate

in pure research and product developments

leading to higher value add. It will be

extremely tech-oriented with almost every

aspect of life becoming online. Karnataka

will be among the Top 25 cities in the

world for its tech-oriented character.

THE JOURNEY SO FAR...Maini Materials has completed over 28

years in its journey of design, manufacture

& supply of electric material handling

equipment & electric golf/in-campus

transportation buggies. The company

pioneered many equipment ahead of its time

and seeded the industry with mechanised

products, which improved the productivity

and efficiency of the user industry segment.

At present, Maini Materials leads the

market in this space and is adding many

new products to its offerings. The strategic

alliance with Nacco Material Handling

Group, USA, to manufacture and co-brand

products in India is a significant step forward.

Electric forklifts branded ‘Yale-Maini’ excel

both in technology & performance. With

real estate becoming scarce and expensive,

large format warehouses are being built

with >8m height that require special

material handling equipment to store &

retrieve goods. Maini offers products to

fulfil such needs.

EXPANSION PLANS…There are several new areas, which are

being explored by the company. We expect

to grow the company exponentially by

addressing/realising such opportunities

over the next five years.

MESSAGE TO YOUNG ENTREPRENEURS IN THE STATE…Young entrepreneurs are great role models

for the next generation. They will set an

example for others to follow, which, in

turn, will contribute to the growth and

betterment of the state.

[email protected]

K“R&D reconfi rms the intrinsic strength of Karnataka as a ‘knowledge hub’,”

affi rms SA Mohan, CEO, Maini Materials Movement Pvt Ltd, during an interaction with Suprita Anupam. Excerpts…

CEO, Maini Materials MovementSA Mohan

Karnataka will remainthe KNOWLEDGE HUB of the country

30 OPINIONS & MORE SEARCH - Supplement November 2012

ARNATAKA AS AN INVESTMENT HUBThe growth of the machine

tools industry is in line

with the state’s growth

requirements and many MNCs that are

coming to India are looking at investing

in Karnataka. While the state is becoming

one of the fastest emerging manufacturing

hubs, I feel that it is still focussing more

on IT and neglecting other industries.

Undoubtedly, the other industries in the

state are growing. However, the State

Government needs to pay immediate

attention to ensure that Karnataka offers

good connectivity as well as makes sure

that sufficient power is made available to

all. Ensuring these will act as factors that

will lure even more companies to the state.

KARNATAKA FAST EMERGING MANUFACTURING DESTINATIONCurrently, the state is focussing on IT.

However, I believe that with the future

proposed investments and the investments

already made, Karnataka will become the

automotive hub in the near future. While

Reva, Toyota, TVS and Volvo have already

set up base in the state; Honda, Tata and

Mitsubishi plan to establish their plants. This,

in turn, will facilitate the biggest automotive

supply chain in India. Additionally, there

are reasons for investments such as presence

of machine tools & foundry industry, which

are the essential suppliers to the automotive

industries. This is one sector where I see

huge growth opportunities in the state.

INFRASTRUCTURE FACILITYThe state’s infra facility is better than that

in most parts of India. However, a lot more

is desired in the transport facility to support

the heavy engineering and automotive

industries. Apart from Bengaluru, there’s

a huge power scarcity in other cities of the

state, which needs to be tackled.

R&D AND INNOVATION HUB Investments in R&D project in Karnataka,

particularly in and around Bengaluru, have

been huge. This, in a way, is directly related

to IT set-ups—a clear indicator of how the

state is the ‘best’ in comparison to the rest

of the country. While Indian engineering

and other R&D set-ups have been

complementing the MNCs’ R&D centres

so far, I think that over the last two years,

the scenario is changing. Indian companies

are now becoming more & more product

and local customer oriented. This, I feel,

provides a good opportunity in India. For

instance, Disa India set up its own R&D

centre five years ago to fill the local demand

gap. After all, there can be no automotive

growth without R&D and from that point

of view, Karnataka is a good place.

ISSUES THAT NEED TO BE RESOLVED…The industry lacks adequate political

support, which is critical for its growth.

While the industry’s focus in Karnataka

has already changed, politics needs to

function within its boundary and must

not cross into that of the industry support

systems. If this issue is resolved, there will

be huge opportunities in the state. Though

Karnataka is in a better situation than most

of the states in India, it cannot be the only

parameter to ensure industrial growth.

For example, an industry, like ours,

needs a huge amount of power, whose

availability is certainly not up to the mark in

the state. Hence, if power unavailability is

one factor, then local taxation, Generalised

System of Preferences (GSP) is the other.

These must be resolved to push the growth

to an upper level.

YOUR JOURNEY IN THE STATE SO FAR…We set up our business here way back in 1984

and our journey has been satisfactory so far.

We have expanded our business manifold

and already have two manufacturing plants

here. Nonetheless, every few years, we

expand our plant capacity to be in sync with

the state’s growth.

[email protected]

K“The state’s infra facility is better than that in most parts of India. However,

a lot more is desired in the transport facility to support the heavy engineering and automotive industries,” points out Viraj Naidu, MD, Disa India, during an

interaction with Suprita Anupam. Excerpts...

MD, Disa IndiaViraj Naidu

Karnataka’s image will soon change from being an IT HUB to an AUTOMOTIVE HUB

31PRODUCT UPDATESEARCH - Supplement November 2012

This section gives information about products, equipment and services available in the market. If you know what you want. . .refer to Product Index on Page 34 to find it quickly

� CAD/CAM SOFTWARE

CAD/CAM software

provides a complete CAD/

CAM solution to design

(2D and 3D), manufacture

(punching, profi ling, nesting and

bending) and control production

(cost estimation, process

management) of sheet metal components and products. Th e

software signifi cantly reduces inventory and increases material

utilisation, allowing you to realise true return on your investment.

RadCAM Software Solutions

Bengaluru, Karnataka

Tel: 080 - 42007936, 09591704404


Website: www.radcamsoftware.com

� DUPLEX MILLING MACHINE

Duplex milling machine is custom-built to end face multiple

components, both from the front and back simultaneously.

Hydraulically operated automatic clamping system with a

well designed job holding fi xture facilitates multiple components to

get clamped simultaneously and quickly. Two milling heads, one in

the front and other in the back simultaneously perform end facing

operations on both faces of all mounted

components. Job clamping, rapid

approach of the spindle, machining, rapid

homing, rapid de-clamping etc. will be

the part of an effi cient auto-cycle

delivered by the combination of limit

switches and PLC. Th e total cycle time

for duplex end facing the multiple

components is few seconds. Th e machine is designed for high

productivity at low cost, consistent accuracy and with least

dependency on the operator’s skill. Matched pair angular contact

bearings used for supporting the spindles of unit heads of milling

SPMs ensure a very high level of spindle accuracy and high spindle

speeds. Combination of turcite and case-hardened guideways for

high wear resistance and smooth linear movement, automatic

lubrication system, effi cient coolant and chip disposal system,

machine enclosure, easily accessible machine controls etc. are the

features of the duplex milling machines.

Shenoy Engg Pvt Ltd


Tel: 080-28361767, 09243437487

Fax: 080-28361725

Email: [email protected], [email protected]

Website: www.shenoyengineering.in

� DATA CONVERTER

High-speed data converter-to-FPGA interconnect design

environment has AD9250 dual-channel, 14-bit, 250-

MSP A/D converter featuring the JEDEC JESD204B

serial output data interface standard. It follows full JESD204B

Subclass 1 deterministic latency at 250 MSPS. Th is functionality

accommodates the precise synchronisation of multiple data-

conversion channels through a

serial interface. Th e AD9250 A/D

converter’s serial interface

implementation provides up to 5

Gbps over a 1 or 2 lane-capable

link. Two serial lanes are used to

support the full 250-MSPS, dual

A/D converter data rate, or a

single lane can be used to support

reduced sampling rates. Key features include IF sampling

frequencies of up to 400 MHz, 95-dB channel isolation/crosstalk,

low power and small package size.

Analog Devices


Tel: 080-43002000

Email: [email protected] , [email protected]

Website: www.analog.com

� CLAMPING SYSTEM

A powerful clamping

system is used for

simultaneous 5-axis

machining. It disposes tool-free

adjustable clamping forces

between 4 kN and 40 kN, which

are measured directly by the

workpiece. Th e support surfaces at a height of 211 mm ensure that

workpieces are easily accessible from all sides. With just one lever

rotation, they are quickly clamped resistant to vibrations and have a

high repeat accuracy. Since the unit is draw bar actuated, the base

body does not sag. Moreover, the clamping mechanism avoids a

chuck jaw fl exing. Th e drive and the adjustment mechanism of the

5-axis clamping vise are completely encapsulated and thus protected

against chips, dirt, coolant, and the easy-to-clean design avoids

build-up of chip clusters.

SCHUNK Intec India Pvt Ltd


Tel: 080-40538999

Fax: 080-40538998

Email: [email protected], [email protected]

Website: www.in.schunk.com

32 PRODUCT UPDATE SEARCH - Supplement November2012

� CNC PUNCHING SOFTWARE

The CNC punching

software has new and

advance functions which

enables sheets to be automatically

cut off on punching and

combination machines to create

off cuts. Sophisticated tagging

secures the remnant in place while unloading the sheet skeleton.

Th e rectangular nesting algorithm for single parts has been

enhanced to show increases in material utilisation. Th e visual

feedback in the order mode list displays if the tool is ‘not

processed’, ‘partially processed’ or ‘all processed.’

RadCAM Software Solutions


Tel: 080 - 42007936, 09591704404


Website: www.radcamsoftware.com

� FIBER LASER

Optical fi ber is

used to generate

the beam inside

the electronic source and

transport the beam from

the source to the cutting

head on the L3. Th is off ers

a large number of

advantage, including the

elimination of optical path and laser gas as well as the creation of a

more simple and compact layout. Th e single cutting head uses only

one lens for high-quality cutting across the entire range of

thicknesses. Th e wavelength typical of fi ber means that highly

refl ective materials, such as high-purity aluminum alloys, brass,

copper and galvanised steel can all be cut successfully. Th e airplane

structure carriage design is extremely rigid and allows fast and

accurate positioning together with easy access to the work piece.

Salvagnini Machinery India Pvt Ltd


Tel: 09913815775


Website: www.salvagnini.com

� HIGH SPEED MACHINING UNIT

High speed machining unit is capable to allow a spindle

speed increase from 18,000 rpm to 23,000 rpm. Th e

machining unit provides new speed options, reliably up to

the maximum speed limit. With an increase of 25% up to a

permissible maximum

spindle speed of 23,000

rpm, operations requiring

higher spindle speeds can be

accomplished more easily.

Th is improvement is the

result of a complete redesign

of drive and spindle bearing

components. A new style

timing belt drive multiplies

the motor speed up to 13,050 rpm spindle speed. An AC inverter

drive is used to increase the spindle speed up to 23,000 rpm at

87Hz. Th e machining unit BEX15 can be applied in axial and

radial orientation, directly mounted to a slide assembly type UA15-

PH or UA15-CNC. In this combination numerous machining

operations like milling or demanding drilling cycles including jump

or peck feed can be accomplished easily.

Suhner India Pvt Ltd

Bengaluru, India

Tel: 080- 27831108

Fax: 80 278311092


Website: www.suhner.com

� HYDRAULIC EXTENSION

The hydraulic extension has a shank

diameter of 6 mm. Th e extension can

be directly clamped without the use of

intermediate sleeves, making them highly

precise. Th e extension does not need any

peripheral equipment, only an Allen key which

is needed for tool change-overs. Independent

of the spindle interface, it transforms almost

every precision toolholder into a fl exible tool,

� GRINDING MACHINE

Portable grinding machine is a tungsten

grinder which is environment friendly

and has the ability to grind quality

points on tungsten electrodes for TIG and

plasma welding. It is equipped with an

integrated dust fi lter thereby protecting the

operator and the environment against the

unhealthy dust produced during grinding of an electrode. It is able

to grind electrodes which are as short as 15 mm with a standard

clamp, whereas with a special electrode clamp it can grind

electrodes as short as 8 mm. Power supply varies from 110-330 V,

frequency 50-60 Hz, motor power 650 W, RPM 28000 and weight

is 2.8 Kg.

SWIT India


Tel: 080-42187117, 09741481117

Fax: 080-42187118


33PRODUCT UPDATESEARCH - Supplement November 2012

� PRECISION GRINDING MACHINE

Precision grinding machine is

optimised to grind tools up to

16 mm (5/8”) diameter. It has

an option to be fi tted with the

robomate loader, which provides

high-capacity loading with a small

footprint. Th e key component of the

robomate is the Fanuc LR 200iC

robot, which takes the tool directly

from the pallet to the collet in a single grip. Th e loader can be

confi gured for two or four pallets, so large manufacturers will have

the capacity they need for economic high-volume production. Th e

diameter range is 3 mm to 32 mm, tool head diameter is up to 32

mm, tool length is up to 250 mm and 15 seconds is the tool change

time. Other accessories are ANCA 5DX, Core 2 Duo, min 3GB

RAM, 15” touchscreen, ethernet port, 56 kbps modem, two USB

ports and UPS.

ANCA Machine Tools Pvt Ltd


Tel: 09886049993


Website: www.anca.com

� TORQUE LIMITER

Torque limiter provides

reliable protection for

machines and human

beings. Th e response time is

extremely short and backlash

free. Diff erent overload torque is

possible and it is very easy to set

the desired torque. It can be used

for direct and indirect drives. Torque limiter is based on the usage

of cup springs with degressive characteristics. Once the adjusted

overload torque range is reached, the balls disengage automatically

and the transmission of torque is interrupted. After the torque falls

below the allowable maximum torque, the torque limiter is

re-engaged automatically and continues to transmit the torque.

Torque limiters are available in torque range of 0.5Nm to 1600Nm.

Single position engagement, multi position engagement and full

disengagement options are available in the machine.

Rotolinear Systems


Tel: 080-23572855

Fax: 080-23379749


Website: www.rotolinearindia.com

� STEPPING MOTOR DRIVE

Stepping motor drive is

available in both AC

and DC input versions.

Th ey can work on currents up

to 4.4A and DC input voltage

up to 45V for low and medium

speed applications. Some

series of motors can work on

currents up to 6A and 75VDC

operation. AC input drives are available operating from 55V AC to

230V AC. Th e drives are suited for high speed applications. Drives

are also available with networking capabilities to operate with

perfect to use in confi ned spaces. Th e run-out accuracy, excellent

vibration damping and internal coolant supply provide for excellent

machining results at the workpiece and for long tool service life. Th e

clamping screw of the extension is radially actuated from the side.

Th erefore, the tool change can be easily done and can take place

directly in the machine if needed. Th e high torque ensures a safe hold

of the tool during drilling, reaming and fi nish milling.

Suhner India Pvt Ltd

Bengaluru, Katnataka

Tel: 080- 27831108

Fax: 080 278311092


Website: www.suhner.com

motors fi tted with encoders. Special drives have been designed to

operate with NEMA43 size motors and for motors designed to

operate at high voltages. All the drives carry protection against

shorting of the motor output terminals, under voltage and over

voltage protection. Th ey are all CE certifi ed. Th ey have specifi c

digital inputs to turn current off which helps prevent overheating of

the motors. All drives have micro stepping up to 3200 steps/ rev.

Some drives can also be set to 4000 steps/rev. Some models carry

an internal oscillator which makes running the motor at a

predefi ned speed with a start-stop signal without a pulse and

direction signal. Th e drives are equipped with an electronic

resonance damping circuit to reduce noise and mechanical

vibrations at low and medium speed operation. Applications

abound in labelling , packaging, ceramic tile printing, X-Y tables

etc.

Strategi Automation


Tel: 080-32329798, 32467879

Fax: 080-41163047


Website: www.strategiautomation.com

The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of

SEARCH

34 PRODUCT & ADVERTISERS’ INDEX SEARCH - Supplement November 2012

3D coordinate measuring machine ...................................................235 & 6 Axes CNC tool grinder ...........................................................35-Axes CNC hob regrinder ...............................................................3Animal feed technology .................................................................. BCAS-interface systems .....................................................................BICBrewing ........................................................................................... BCCables for bus system ....................................................................BICCAD/CAM software .......................................................................33Capacitive and magnetic sensor.....................................................BICChocolate / cocoa ........................................................................... BCClamping system ..............................................................................33Cleaning section equipment ........................................................... BCCNC punching software ..................................................................34Colour sorting ................................................................................. BCCompressed air system fitting ..........................................................15Custom-made cable .......................................................................BICData cable ......................................................................................BICData converter ..................................................................................33Duplex milling machine ...................................................................33Exhibition - engineering expo ............................................................4Extruded product ............................................................................ BCFiber laser .........................................................................................34Flour milling ................................................................................... BCForm & cylinder city tester ..............................................................23Grain handling ............................................................................... BCGrinding & dispersion ................................................................... BCGrinding machine .............................................................................34High speed machining unit ..............................................................34Hydraulic component .......................................................................15Hydraulic extension ..........................................................................34Identification system ......................................................................BICInductive sensor .............................................................................BICIndustrial metrology .........................................................................23Instrumentation made cable ..........................................................BIC

Investment navigator ........................................................................13Investment promotion & faciliation .................................................13LLDPE tube ....................................................................................15Metal cutting tool ..........................................................................FICMulti gauging system .......................................................................23Oil milling ...................................................................................... BCOpto-electropnic system ...................................................................23Pasta ................................................................................................ BCPhotoelectric sensor .......................................................................BICPipe tube fitting ................................................................................15Piping systems ..................................................................................15Plastic pellet .................................................................................... BCPlumbing pipes & fitting .................................................................15Pneumatic component ......................................................................15Precision grinding machine ..............................................................35Pure water fitting ..............................................................................15Rice milling equipment .................................................................. BCRotary encoder ...............................................................................BICSensors ...........................................................................................BICSolid carbide drill ..........................................................................FICSolid carbide drill with IC ............................................................FICSolid carbide mill ...........................................................................FICSolid carbide reamer ......................................................................FICSolid carbide reamer with IC ........................................................FICSolid carbide special drill ...............................................................FICSolid carbide special mill ...............................................................FICSolid carbide special reamer ..........................................................FICSpiral cables ...................................................................................BICStepping motor drive ........................................................................35Thermal process .............................................................................. BCTorque limiter ...................................................................................35Turning machine solution .................................................................19Ultrasonic sensor............................................................................BIC

Products Pg No Products Pg No

Looking For A Specific Product?Searching and sourcing products were never so easy.

Just type SRCH (space) Product Name

and send it to 51818eg. SRCH Pump and send it to 51818

Our consistent advertisers

Buhler (India) Pvt Ltd .BC

T: +91-80-22890000

E: [email protected]

W: www.buhlergroup.com

Carl Zeiss India (Bangalore) Pvt Ltd 23

T: +91-80-43438102


W: www.zeiss.co.in

Engineering Expo 4

T: +91-09819552270


W: www.engg-expo.com

To know more about the advertisers in this magazine, refer to our ‘Advertisers’ List’ or write to us at [email protected] or call us on +91-22-3003 4653 or fax us at +91-22-3003 4499 and we will send your enquiries to the advertisers directly to help you source better.

Advertisers’ Name & Contact Details Pg No Advertisers’ Name & Contact Details Pg No Advertisers’ Name & Contact Details Pg No

G W Precision Tools India Pvt Ltd .FIC

T: +91-80-40431252


W: www.gwindia.in

Karnataka Udyog Mitra 13

T: +91-80-22282392


W: www.kumbangalore.com

Luthra Pneumsys 15

T: +91-09821128362


W: www.pneumsys.com

Meiban Engineering Technologies Pvt Ltd 19

T: +91-80-26491229


Pepperl & Fuchs(India) Pvt. Ltd. .BIC

T: +91-80-28378030


W: www.pepperl-fuchs.com

Tool Grinding Technologies Inc 3

T: +91-80-41170352


W: www.tgtindia.com

36

RNI No; 67827/98 Postal Regd. No: G2 / NMD 81 2011-13 Posted at Mumbai Patrika Channel Sorting Office - GPO - Mumbai 400 001

on 22nd & 23rd of Every Previous MonthDate Of Publication: 18th of Every month

search - november - investment destination 2012

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