tapping into the globally-competitive indian manufacturing

May 2020

Tapping into the globally-competitive Indian manufacturing opportunity

ForewordThe current global environment has several uncertainties. Global trade has been impacted by the COVID-19 crisis, with disruptions in supply chains highlighting the risk of being dependent on very few geographies. There is now a widespread emphasis by multinational companies on de-risking their supply chains and they are looking at diversifying to other countries.

This report has been prepared to assist multinational companies in getting an understanding of the potential opportunities for them in considering India for manufacturing through collaborations with Indian companies and through contract manufacturing. Broadly, we see India as an attractive destination for MNCs around the world. To become a competitive manufacturing hub, India is expected to leverage its advantages such as, an existing strong manufacturing base, competitive labour and taxation, investor-friendly business regulations and upgradations in infrastructure. Another opportunity for MNCs in India is its large and growing domestic market which can absorb investments.

We hope you find this analysis insightful.

Sudhir H Kapadia

National Tax Leader, EY India

Contents

Large and growing consumption market

02Engaging with Governments to get necessary policy support

03Sectoral opportunities

04How EY can help

05India as a competitive manufacturing destination

01

28 May 2020 Opportunities for multinational companies from India manufacturing partnerships - For Internal use only

Executive summary


India can be a key manufacturing base for corporations relying on global value chains

Source: MOSPI; IMF 2020 (April)

Stable external sector – Relatively stable Rupee, Large foreign exchange buffer, low crude oil prices

One of the world’s fastest growing large economies (grown at over 7% in last few years)

Large market – Growing consumption in India► 100% increase in household consumption over last

ten years► US$ 150 billion of consumption added annually

Politically stable with good political and trade relationswith leading markets around the world such as Japan, US, China etc.

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Large tracts of land identified by Government – early start for manufacturing

Large tracts of land available in private run industrial parks

Large labour force ► Wages in India 30% of China► 2.6 million STEM graduates – engineering talent► Labour laws being modified – flexibility for businesses

to hire and fire

World class ports and airports located on global transport routes. Good hinterland connectivity through rail and roads.

Excess electricity generation capacity with Government making efforts to rationalize tariffs i.e., reduce tariffs for electricity

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STEM: Scientific, Technology, Engineering and Management


Policy announcements announced in May 2020 underscore Indian Government’s focus on domestic manufacturing and opening new opportunities

Expanding the role for private capital

Government has opened commercial coal mining and space sector for private participation. Further review of strategic sectors to be undertaken with a potential privatization agenda.

An efficient and competitive electricity sector

New reforms could potentially reduce power sector losses, bring more competitive power rates for the industry and increase efficiency and competition in the power distribution segment.

Opportunities in mining and healthcare sectors

Government will take measures to create investment opportunities for mining by auctioning licenses that would allow to go from exploration to mining, Government also proposes to increase public investment in health care facilities.

De-controlling agricultural sector

Government proposes to remove controls that would allow for a nation wide market for agricultural commodities, giving higher farm prices and greater certainty to private players in sourcing agricultural produce.

Increased local defence manufacturing and aviation opportunities

Recent policy changes intend to promote domestic defence manufacturing and encourage MROs, that will boost both defence and civil aviation volumes.

Continued commitment to foreign capital

Government’s announcement of increasing FDI limit in defence to 74% and allowing Indian companies to list overseas underscores India’s deep commitment to foreign capital.

MROs: Manufacture, repair and overhaul


India has undertaken several business friendly reforms in recent years

1. Through recent measures India’s taxation has become globally competitive

2. Simple regulatory environment

Corporate tax cut to 17%* to boost investment and transform India into a

“manufacturing hub” Corporate tax in India is lower than other Asian countries

10%** withholding tax for dividend, long term capital gains, royalty and fees for technical service payments

5%** withholding tax on interest payment

Transfer pricing provisions allow non residents to obtain

advance pricing agreement or use safe harbour rules to provide certainty to foreign investors

Implementation of GST has brought in supply chain efficiency and improved competitiveness of India’s manufacturing sector

Duty exemption on imports of inputs/capital goods in

manufacturing in bonded warehouse

3. Various structural reforms to make Indian economy concluded or are underway

► Insolvency and Bankruptcy Code for easier exits

► Decriminalization of Companies Act, 2013

► Liberalization of regulations in: Agriculture, Power, Aviation, Defence, Coal and mining

► Government policies likely to favour locally produced goods

► 100% FDI investments in practically all manufacturing

► Free flow of goods in and out of country: simplified custom procedures, major upgradation of port infrastructure

► World Bank ease of doing business ranking up from 142 in 2014 to 63 currently

► Digital compliances for most tax and regulatory processes

► Massive scaled up digital payments infrastructure

Source: World Bank Ease of Doing Business Report 2019, Department for Promotion of Investment and Internal Trade *Corporate tax for new manufacturing companies; Subject to applicable regulations and rates ** Subject to conditions under Indian tax laws and Double Taxation Avoidance Agreement between India and Japan

FDI: Foreign Direct InvestmentGST: Goods and Services tax


Various alternatives for leveraging India as a part of the supply chain

► FDI norms allow up to 100% equity ownership in practically all sectors

► Numerous examples of global corporations running successful businesses without any joint ventures

► Manufacturing in practically any sector can be undertaken through JVs

► Vibrant and well established private sector – numerous choices for JVs

► History of long running and successful joint ventures in India

► Vibrant private sector in India

► Number of sectors are well developed with a host of well established players

► Contract manufacturing used by a number of companies in India

100% owned Manufacturing

Manufacturing through Joint

Ventures

Contract Manufacturing

Source: EY Analysis JV: Joint Ventures


Key sectoral opportunities

Sectors where India is competitive and has a manufacturing and export base

ChemicalsTextiles & Apparel

Consumer Goods

Iron, Steel & industrials

Auto componentsPharmaceuticals

► 6th largest in world

► Profitable with high rates of return

► Growing on the back of demand for end consumer industries

► 4th largest producer of textiles

► 6th largest exporter for apparel globally

► Presence of entire value chain in India

► Large producer of Cotton, Jute , Polyester, etc.

► 4th largest sector of Indian economy

► Increasing consumption on the back of large middle class

► 2nd largest producer of Crude steel and Coal

► 3rd largest finished steel consumer in the world after China and USA.

► Large resource of Iron Ore

► Further liberalization of the mining sector and coal sector in India

► Globally, 3rd largest in volume terms and 10th in value terms

► Attractive for generic manufacturing

► Strong presence and capabilities across the value chain

► Low cost of production

► Well versed with getting FDA approvals

► Projected to become 3rd largest manufacturer globally by 2025.

► India has become a designing and manufacturing hub with increasing presence of global OEMs

► Well developed auto-component exports

Sources: EMIS sectoral reports, IBEF, Invest India, EY sectoral reports, Make in India, India Trade Portal, World Steel Association Report 2019 OEMs: Original Equipment ManufacturersFDA: Foods and Drugs Administration


Key sectoral opportunities

New high growth sectors where export driven world class manufacturing facilities can be established in India

Smartphones and

Electronics

Defence production

Battery manufacturing

► "Large market with ~ 1.2 bn telecom subscribers

► Large talent of engineering and scientific manpower

► Potential to develop large scale manufacturing to serve both Indian and global markets

► Large buyer of defence equipment

► Liberalisation in FDI norms (74% from 51%)

► Focus on procuring domestically produced equipment

► Strong policy push for Electric Vehicles (EVs) in India.

► Strong push to develop local battery manufacturing capability

Medical devices

► Key focus area in a post COVID World

► Increased public spending on healthcare

Sources: TRAI (July-September 2019 report), News Reports


How EY can support

► Market assessment study and evaluation of possible collaborations and determine entry strategy - contract manufacturer/ JV/ subsidiary such as, comparative assessment of India and ASEAN countries

► Detailed SWOT analysis on potential incentives and benefits that could influence decision and engage with government and stakeholders to determine feasibility

► Assistance in defining and executing advocacy strategy of global group of companies with Central or state governments.

► Assistance in finalizing suitable location within India – state, region, district, city

► Based on chosen model, execute the plan, including transaction advise, structuring the arrangement, tax and regulatory compliance and approvals, negotiations with stakeholders.

► Assistance in availing incentives under various state government policies.

► Assistance in applying and complying with various state government rules and regulations (NOCs, approvals etc.)

Assess and

evaluate

Analyzeand

advocateImplement

ASEAN: Association of South East Asian NationsSWOT: Strength, weakness, opportunities and threat analysisNOCs: No Objection Certificate

Main report:

Why should you invest in India?

India as a competitive manufacturing destination

01


What makes India a manufacturing destination?Overall economic factors

The Indian economy signifies large growth opportunities and stability due to relative protection from various geopolitical events (like ongoing trade wars, crude oil shocks), macroeconomic stability, and external sector stability.

Source: MOSPI; IMF 2020 (April)

Large investments in upgrading infrastructure – India currently implementing a US$1.4 t infrastructure project pipeline to be completed by 2024-25

Attractive FDI destination – 100% FDI automatic route in manufacturing; US$ 473 b Foreign Direct Investment (from FY10), 60% of which was since 2014-15

Politically stable with good political and trade relations with leading markets around the world such as Japan, US, China.

Strong Intellectual Property Rights ecosystem

Aggressive corporate tax cuts and relief on dividend distribution tax in last 12 months. India now a much more attractive and investor-friendly destination

Second largest English-speaking country and young median age of 28 providing a large pool of employable workforce

Positive market sentiments and increase in disposable income expected to result in 3X rise in consumption expenditure by 2025

Forex stability: large forex buffer, benefits from low crude prices, IMF anticipates sharp recovery in 2021

One of the world’s fastest growing large economies (grown at over 7% in last few years)


What makes India a manufacturing destination?Large number of Indian manufacturers with required competence– contract manufacturers/ collaborators

Top 10 FDI destinations in

the world

Source: UNCTAD 2019

2nd fastest growing major economy in the world

Source: IMF 2019

6th among the top

manufacturing countries of the

world

Source: UNIDO 2019

1st among

Greenfield FDI destinations in the world

Source: Global Investment Trend Monitor report

1st choice of tech

MNCs to set up R&D centres outside their home countries

Source: Zinnov Consulting

7th most valued nation brand in

the world

Source: Brand Finance

US$320 billion

merchandise

exports annually

Source: Ministry of Commerce

Most competitive economy in

South Asia

Source: WEF Global Competitiveness Index

In these sectors, companies can find potential Indian collaborators with required competence.

Chemical and Plastics industry

Textile and apparel industry

Consumer goods

Electronics industry

Pharmaceuticals

Large 2, 3 and 4 wheeler manufacturer

4th largest producer of chemicals in Asia

3rd largest supplier of medicines globally

Largest producer of cotton

Largest incentives program in India to promote manufacturing

Consumption of US$ 150 b added each year

Auto components industry

Sources: EMIS sectoral reports, IBEF, EY sectoral reports, SIAM, EY Analysis, National Account Statistics R&D: Research and Development

28 May 2020 Opportunities for Japanese companies from India manufacturing partnership - For Internal use only

Source: ASI , China Statistical Yearbook

► Favourable demographics for India compared to other countries

► Strong technical and engineering capabilities (2.6 million STEM graduates)

► Government recognizes the importance of human resource development

► Under Skill India initiative Indian government has collaborated with governments across the globe like USA, UK, EU, Germany, France, Japan etc. for skill transfer trainings, internship programs

4.55.1

5.76.3 6.3 6.6

1.7 1.7 1.8 1.7 1.8 2.0

2012 2013 2014 2015 2016 2017

China India

Source: OECD (2020), Working age population (indicator)

*Working age population is defined as those aged 15 to 64

What makes India a manufacturing destination?Availability of skilled labour is India’s competitive advantage

Share of working age population in total population (%)

Average wages in Manufacturing Sector (in US$ ‘000)

Source: Ministry of Labour and Employment

► Government is simplifying labour laws to reduce compliance costs and has allowed companies across sectors to hire workers for specific duration (fixed term)

► 44 labour laws have been merged into 4 labour codes namely:

► The Code on Wages, 2019

► The Occupational Safety, Health and Working Conditions Code, 2019

► The Code on Social Security, 2019

► The Industrial Relations Code, 2019

► More detailed regulations within these codes will be prescribed. It is anticipated to retain India’s social culture while being business friendly

► Various relaxations in Labour laws across states

Labour availability and its skillset Labour reforms to provide flexibility in labour policies and reduce compliance costs

55

60

65

70

75

1990 1994 1998 2002 2006 2010 2014 2018

USA EU China India

65.4 64.6 71.2 66.4

https://data.oecd.org/pop/working-age-population.htm


What makes India a manufacturing destination?Business regulatory environment

Source: DPIIT, New Reports, Ministry of Shipping, Ministry of Commerce and Industry, World Bank Ease of Doing Business Report 2019, Unified Payment Interface, NPCI

► India’s performance improved from 142 (2014) to 63 (2019), progressing on 7/10 parameters

Land on a ‘Plug and Play’ basis

► Department for Promotion of Industry and Internal Trade sets up a platform to facilitate large investors from the world, providing information on 21,000 acres land along Delhi-Mumbai Industrial corridor available for Industries

► Proposes to also include land in private sector industrial parks

FDI policy

► 100% FDI permitted under automatic route for manufacturing companies, though sectors like defence, telecom, media, pharmaceuticals and insurance need government approval

Free trade

► Good political relationships with major markets around the world

► India has Comprehensive Economic Partnership Agreement and Free Trade Agreements with many countries also providing preferential tariffs for trade (often at nil rate of custom duties)

Digital compliances

Trade related infrastructure

Structural reforms

Digital payment systems

► Digital platform for most compliances like tax filings, applications and payments for licenses and permits, and regulatory filings, creating transparency, simplicity and predictability for businesses

► AEO programme – simplified customs processing

► ICEGATE - Single-window digitised system for trade-related procedures

► Upgradation of port infrastructure and connectivity: Completed 121 projects at a cost of US$ 4.2 b and several others are underway

► Introduction of Insolvency and Bankruptcy Code, Goods and Services Tax, Companies Act, 2013, Universal Bank accounts, Universal health insurance –all foundations of a resilient society

► Digital payments across B2B and B2C due to expansion in opening of universal bank accounts, creation of cheap and efficient payment systems, and use of FinTech

► More emphasis on organised and formal economy

Ease of Doing Business

Department for Promotion of Investment and Internal TradeAEO: Authorized Economic OperatorICEGATE: Indian Customs Electronic Commerce/ Electronic Data Interchange (EC/ EDI) Gateway


India

17%**

What makes India a manufacturing destination?Competitive taxation designed to attract new manufacturing investment

Corporate Tax Rate (%)

Source: EY Worldwide Corporate Tax Guide 2019* Subject to conditions under Indian tax laws and Double Taxation Avoidance Agreements**Corporate tax for new manufacturing companies; Subject to applicable regulations and rates

Singapore

17%

Thailand

20%Vietnam

20%

Malaysia

24%

Indonesia

25%China

25%

Philippines

30%

Corporate tax cut to boost investment and transform India into a

“manufacturing hub”

10%* withholding tax for dividend, long term capital gains, royalty and fees for technical service payments

5%* withholding tax on interest payment

Transfer pricing provisions allow non residents to obtain

advance pricing agreement or use safe harbour rules to provide certainty to foreign investors

Implementation of

GST has brought in supply chain efficiency and improved competitiveness of India’s manufacturing sector

Duty exemption on imports of inputs/capital goods in manufacturing in bonded warehouse under Manufacture & Other Operations in Warehouse Regulations (MOOWR) 2019


What makes India a manufacturing destination?Infrastructure upgradation

Industrial and dedicated freight corridors – a game changer

Physical infrastructure progress in the last decade

May reduce transportation time of goods from days to hours

Dedicated Freight Corridors (DFCs) as backbone to Delhi–Mumbai Industrial Corridor Project (DMIC) and Amritsar Kolkata Industrial Corridor (AKIC)

Integrating the key and highest generating provincial economies/regions across the country

New sustainable industrial cities with world class infrastructure

Integrated infrastructure projects to ease logistics issue

► National highway roads built: 64,000 kms*

► Electricity generation capacity of 217 GW added, 84% growth in power generation

► Moving towards a cleaner fuel: 71% of capacity addition in last three years is in renewables

*2009-19, 1US $ = INR 72

In $ billion

Roads - 19%

Railways - 13%

Urban and Housing - 16%

Energy - 24%

Agriculture and Rural Sector - 12%

Health and Education - 3%

Airports, Ports and Tourism - 3%

Industrial Corridors - 3%

Digital Infrastructure - 3%

Others - 4%

US$ 1.4

trillion

Source: Ministry of Finance

National Infrastructure Pipeline for next 5 years

Large and growing consumption market

02


India’s consumption market growth has created several opportunities for investors in the last decade

Household consumption growth in the last decade

Healthcare and Education

Fastest growing segments

Transport

Clothing and Footwear

Fuelled by:

Consumer durables100%*

US$ 150 billion consumption added each year

Equivalent to total consumption of Norway

Sales growth in the last decade

12x

2011-19

Technology

Increase in wireless data usage in last decade

90x

2010-18

Increase in smartphone sales in last decade

44x

Large investments

Corporate capex of over US$1.7 trillion*

2008-18*, at current prices and current $2009-19**, 1 US$ = INR 72

FDI inflow of US$510 billion** in the last decade

2014-19

1

E-commerce

2 3

Sources: IBEF, TRAI, RBI, MoSPI


India’s large and growing market gives it an advantage over ASEAN countries

Growth in consumption in last five years and size of total consumption

India crossed threshold of per-capita GDP of US$ 2,000 and growing towards per-capita GDP of ~US$ 4,000-4,500, which would open up massive market opportunities.

India’s private consumption is estimated to grow by US$ 2 trillion of which nearly half would be in premium and new category consumption.

Local manufacturing presence would provide much better access to the Indian market

Total consumption is reflected in the size of the bubble

Source: World Bank, World Economic Reform

India, 8.8% China, 8.4%

Vietnam, 8.2%

Phillippines, 4.4%

Malaysia, 3.3%Singapore, 2.7% Indonesia, 2.6% Thailand, 2.6%

EU, 0.1%

US, 4.1%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

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Engaging with Governments to get necessary policy support

03


► Capital linked – cash back► Expenditure linked – exemption /

cash back ► Sales linked

► GST linked subsidies -reimbursement/soft loan

► Subsidies linked to social security contributions (PF/ESI)

► Other subsidies (technology, transport, Interest etc.)

► Special incentive package may be negotiated for mega projects

Government of India and State governments are keen to attract investments to create jobs

With large workforce, the Government of India and State Governments are looking to prioritize manufacturing investments leading to job creation. This implies:

► Country wide infrastructure push leading to visible rise in infrastructure quality in states.

► Major destinations in India attracting FDI provides excellent quality of life. New Delhi and Mumbai feature in Global Liveability Index, Delhi with a per capita income of US$18,600 features in top 10 metros of the world (Global Metro Monitor)

► Interstate competition on

► Ease of doing business leading to enhanced information transparency, reduction in human interface and legislation backed time bound services

► Competitive sector specific policies backed by umbrella industrial policy in almost all states primarily providing capital subsidy, tax breaks, etc. with higher incentives in backward areas and higher incentives on employment generation.

► GIS enabled land bank available with all major states but right connect can lead to faster acquisition.

With proper engagement with the government, multinational companies can get requisite policy support along the necessary lines.

Capital investment and employment

Fiscal incentives

Federal and state level incentives for manufacturing in India

1 2

3 4

► Stamp duty waiver/concessions► Other concessions on

registration charges, property taxes, conversion charges, etc.

► Single-window clearance

Land related

► Electricity duty exemption► Rebates in tariffs for

electricity/water/gas► Subsidies on clean manufacturing

technology, pollution control, etc

Infrastructure

Source: Global Liveability Index, Global Metro Monitor 2018 PF: Provident fundESI: Employees State Insurance

Sectoral opportunity

04

Chemical and Plastics industry


Chemicals industry: an overview

► Indian chemicals and petrochemicals (CPC) industry is growing at 2x the global growth rate

► Estimated market size of India US$ 178 b (FY19)

► India is the 4th largest producer in Asia and 6th largest in the world for CPC

► India is a strong global dye supplier, accounting for approximately 16% of the world production of dye products

► US$ 17.4 b in FDI during 2000-2019 (other than fertilisers)

Sources: Department of Chemicals and Petrochemicals, EMIS Chemical sector report, Invest India, IBEF, EY industry reports

Indian chemical and petrochemical industry size (US$ b)

147163

4057

304

ConsumptionFY 25

FY 18

~7%

~13%+

~9%+

$107b or 65% of what is consumed in India is made in India

~13%

Major players

Industry overview

UPL OpenAg

Philips Carbon Black Limited

BASF SE DOW Inc

Du Pont

De Nemours Inc

HUNTSMAN


Strong presence across the value chain

Plastics industry: an overview

► India’s plastics industry is one of the largest in the world with an estimated market size of US$25 b

► In FY19, plastics export stood at US$ 11 b of which exports of raw plastic material stood at US$ 4.5 b

► More than 2,000 exporters across the country

► Western region accounts for 47% of the industry production

Industry overview

Polymer manufacturers

RecyclingPlastic

processorsEnd-user industry

Strong presence across the value chain

~15 large industrial groups

~7,500 units ~30,000 units Packaging, infrastructure,

industrial sectors agriculture, textile fibers, electronics,

automotive

► Low per capita consumption of plastics in India at 9.7 kg compared to 27 kg world average, 45 kg in China and 32 kg in Brazil

► Growth of end-user industries and low penetration levels especially in agriculture compared to global averages

► Substitution of traditional materials such as glass, metal etc. in end-user industries

► Presence of large number of polymer producers, and plastic process machinery and mould manufacturers in the country

Sources: IBEF, EY Analysis, FICCI

Strong domestic market potential

Time Technoplast Ltd

Garware Polyester Limted

SINTEX

Polylplex

Major players


India’s competitive advantage in chemical and plastics industry

Sources: IBEF, EY Analysis, EMIS Industry report

India enjoys several advantages over other countries

► Stable and growing economy with increasing per capita income and urbanization

► Significant potential in terms of capacity, infrastructure and skilled manpower

► Established supply chain routes and low cost manufacturing

► Ready access to important raw material resources

► Backed by strong government support- planned investment of US$ 6.2 m and 18 plastic parks being set up to boost domestic production and achieve environmentally sustainable growth

► High demand from end user industries specially for speciality chemicals

Stringent environment norms in other countries make India an attractive alternative for chemical and plastics products

Being amongst the largest waste producers in South East Asia, India provides an opportunity for scaling up the recycled waste based manufacturing, including plastics


Broad overview of potential states in India for the Chemicals sector

Parameter Maharashtra Tamil Nadu Gujarat Andhra Pradesh Telangana

Policy (apart

from industrial)

NA NA NA Thrust Sector of Industrial Policies Priority sector - Petroleum, Chemicals & Petro-chemicals of IPR

Major Incentive/

Subsidy

40-50% gross SGST limited to 100% FCI for 7-9 years

Soft loans for mega and above 100% of Net VAT/SGST for 10-14 years limited to 100% investment in EFA

70-100% of Net VAT/SGST for 10 years limited to 70-100% of FCI

50% of Net VAT/SGST for 7 years limited to 100% investment in P&M

100% of Net VAT/SGST paid for 7-9 years from commencement of production limited to 200% cost of P&M

Major clusters 13 chemical zones at Ambernath, Badlapur, Butibori, Dombivali, Kalyan-Bhiwandi, Kurkumbh, Lote, Parshuram, Mahad, Patalganga, Roha, Taloja, Tarapur, TTC

Petroleum, Chemical & Petrochemical Investment Region (PCPIR), Cuddalore and Nagapattinam - (Proposed)

Petroleum, Chemical & Petrochemical Investment Region (PCPIR), Dahej Vapi, Bharuch, Ankaleshwar, Valsad –

GIDC: Investment 16,959 crore for infra. already done

Vishakhapatnam, Nakkapalli, Kakidana Clusters (PCPIR) spread across 603 sq. km – (Stage -Finalization of Master Plan); LPG bottling plants in Krishna and Kurnool districts

Rs. 1919.13 crore appx. Investment on infra.

Under Implementation - Chemical and pharmaceutical cluster in Berhampur, Petroleum, Chemicals and Petro-Chemicals Investment Region (PCPIR), Paradeep – with 284 sq. km area (Draft plan approved, EIA completed)

Support

Infrastructure

National Chemical Laboratory, Pune; Indian Institute of Technology, Bombay; Institute of Chemical Technology, Pune

20 operational CETPs – Combined capacity of 286 MLD

4 CHWTPs – Taloja, TTC, Ranjangaon and Butibori

Sewage Treatment Plant at Hinjewadi with 4 MLD capacity

JNPT – biggest container handling port in India

Central Electro Chemical Research Institute, Karaikudi

Polymer Industries Park, CIPET: Institute of Plastics Technology (IPT), CIPET: School for Advanced Research in Polymers (SARP),

2588 Chemical Manufacturing Factories

Petroleum, Chemical & Petrochemical Investment Region (PCPIR), DahejCentral Salt & Marine Chemicals

Research Institute, BhavnagarCentral Institute of Chemical Engineering & Technology (CICET) to come up

Dahej - 90 MLD effluent disposal pipeline, 40 MLD CETP, TSDF of 1.4MMT Adani Petronet Dahej Port Pvt Ltd

Six lane Dahej-Bharuch State Highway (SH6) connects the region to Delhi-Mumbai National Highway and National Expressway

Indian Institute of Chemical Technology, Hyderabad

Andhra Pradesh Petroleum, Chemicals & Petrochemicals Investment Region

6 SEZs - Pharma SEZ, Andhra Pradesh SEZ, Hetero Drugs SEZ, Kakinada SEZ, Parry’s Food Products SEZ

PCPIR Expressway, SCR Trunk Line – AP PCPIR, Kakinada Deep Water Port, Visakhapatnam Port, Gangavaram Port

Institute of Chemical Technology Bhubaneshwar, National Institute of Science Education and Research (School of Chemical Sciences) –Khurda, Laboratory of Advanced Research in Polymeric Materials,

Gopalpur has an operational port near Berhampur and a SEZ is proposed here.

Paradip Port, the largest port on the east coast of India - Region is 2.5 km form NH-5A and 3 kms from SH-12. Proposed airport to be built within the zone.

NH-5A connects Paradip to NH16 (Golden Quadrilateral)

Sources: Government of Maharashtra, Andhra Pradesh, FICII Manufacturing Hubs in India Report 2019, Department of Chemicals and Petrochemicals Annual Report 2019-20


Broad overview of potential states in India for the Plastics sector

Parameter Assam Karnataka Gujarat Jharkhand Kerala MP Odisha

Policy (apart

from

industrial)

General Industrial Policy


Scheme for assistance for Plastic industry (Revised)

General Industrial Policy & special incentive for Deoghar Plastic Park


General Industrial Policy General Industrial Policy

Major

Incentive/

Subsidy

For units set up in Plastic Park:100% SGST reimbursementFor 15 years, subject to maximum(i) 250% of Fixed capital investment for micro enterprises(ii) 180% of Fixed capital investment for small enterprises(iii)150% of Fixed capital investment for medium & large enterprises

The industrial policy encourages plastic waste recycling units with an additional investment promotion subsidy of 5 per cent (max. 10 lacs)

Interest Subsidy @7% per annumReimbursement to the extent of 80% of net VAT paid

For development of Plastic Parks:Provides incentives and concessions for Public, Private, PPP, JV Industrial Parks

Entrepreneur Support Scheme (ESS) will be introduced for Plastic waste Recycling, Bio-Degradable Plastics.5% of land in industrial park to be earmarked for plastic recycling units.

Incentives for Large Scale Industries:IPA @40% to 10% max 270 Cr.Investment subsidy for ETP/STP @50% max 25 lacsExemption from electricity duty for 5/7/10 yearsInterest Subsidy @5% for 5 years for technical textile unitRebate on new HT connection @INR 1 per unit for 5 years

Subsidy for investment in P&M in industries in Plastics Sector:10% of investment, max 50 Cr. (depending upon the size of unit)

Major clusters Tinsukia, Assam Ganjimutt, Mangaluru

Proposed: Narasapura, Kolar, Bengaluru & Dharwad

Sanand, GujaratDahej, Gujarat

Devipur, Deoghar Proposed: Kannur, Kerala

Tamot, RaisenBillaua, Gwalior

Siju, Jagatsinghpur

Support

Infrastructure

Abdos Lamitubes (P) Ltd, Avichal BuildconPvt Ltd, BCPL, EsselPropacks Ltd., VecoEnterprises, PlastIndia, Nanotech Pvt.Ltd., PurbanchalEnterprises

Varroc Polymers, Shakti Plastics, BASF India, GurudevPlastics Pvt Ltd., Microplastics Pvt.Ltd.,

Sintex Plastics, Satellite polypack, Wim Plast, RIL, BASF India, Parag Polymers, Intercontinental Polymer, Jyoti Plastic Works, Uflex, Cosmo Films, Time Technolpast

Raga Industries, Gopal Industries, M.S. Plastic, Sunrise Plastic, Shree Plastic, Jharkhand Plastics Pvt. Ltd., Rotoplast Containers, Hindustan Polytex, Nilkamal Ltd.

Ocean Polymers, Mega Polymers, Consolidated Thermoplastic Products, Southern Plastics, Paramount Plastic

Uflex, The Supreme Industries, Vectus Industries, Bhawna Polymers, Prakash Packaging II, Charu Agro Plast, Creative Pro Pack, Flexi Caps, Friscon Polyfab, India Nets, Jagannath Plastics, M.D. Enterprises, Mahishmati Plastics, SRF Ltd, P.N. Polybag, FlexituffVentures International Ltd.

Techno Green PVC Pvt.Ltd., Indian Plastic Industries, S K Industries, JS Industries, Lisa Plastics, JoshnaPolymers

Sources: Department of Industries and Commerce Karnataka, Industries Commissionerate Gujarat, Jharkhand Industrial and Investment Promotion Policy, Kerala Industrial and Commercial Policy, Madhya Pradesh Department of Industrial Policy & Investment Promotion, Industries dept. and New Opportunities Odisha,

Textile and apparel industry


Indian textile and apparel sector has its presence over the entire value chain and can create integrated and efficient industrial units

Man-made fibre Yarn FabricProcessed

FabricReadymade

garment/Apparel

Key

texti

le a

nd a

ppare

l zones i

n I

ndia

Source: World Integrated Trade Solutions, IBEF, EMIS Textile sector report, Ministry of Textiles, EY Analysis

Top markets include:✓ USA✓ Europe✓ Middle East

13% of

manufacturing GVA

and 2% of GDP

Largest producer of cotton in the world

2nd largest exporter

and manufacturer

*This estimate is based on the value of personal final consumption expenditure (PFCE) of apparel and home textile in 2017-18 from National Accounts Statistics, assumed growth in last two years as per growth in overall PFCE, estimated consumption of technical textiles based on its production, and value of exports and imports for 2018-19 as per the Ministry of Textiles.

103124

160

2137

Apparel andhome textileconsumption

Technical textileconsumption

Totalconsumption

Exports Total industrysize

Estimated size of India’s T&A market annually (in US$ b)*

Presence of the Indian textile and apparel sector across the entire value chain

GVA: Gross Value Addition


1

2

3

4

5

6

7

Indian textile and apparel industry strengths

Growing domestic market with increasing urbanization and demand for branded and high value products

Availability of wide variety of fabrics such as cotton, rayon-based fabrics, yarn dyed woven fabrics and knitted fabrics

One of the leading producers of value added garments such as embroidered garments accompanied by strong pool of merchandisingand designing talent

Possibility for greater flexibility in production runs

Abundance of labour and availability of trained garment technicians

Production of textile and apparel products for some of the leading global brands such as Marks and Spencer, H&M and Gap

Source: EY Analysis, IBEF

Government push to boost domestic production


Parameter Maharashtra Tamil Nadu Gujarat Andhra Pradesh Telangana

Policy (apart from industrial)

Maharashtra State Textile policy 2018-2023

Integrated Textile Policy of Tamil Nadu 2019

MSME Policy Note 2018-19

Textile Policy 2019-2023

Garment and Apparel Policy 2017-22

Textile Policy 2015-2020 Textile Policy 2017-2022

Major Incentive/ Subsidy

Subsidy of 9% of project cost (under SITP Scheme)

Capital subsidy of up to 40% of the capital investment

Textile park financial assistance upto 40 per cent

Support for establishing Textile and Apparel Park upt 50%

Capital subsidy for standalone garment and apparel units.

Financial assistance upto 50% for investment in technology

New unit capital subsidy up to 35% with

Power tariff subsidy for 5 years

100% reimbursement of stamp duty

Major clusters Baramati Hi-Tech Textile Park; Aurangabad Textiles and Apparel Parks Ltd; Sangli Garment Cluster; Dhule Textile Cluster; Nagpur Textile Cluster

Perudurai Cluster; Chinnapalanpakam Cluster; Kottamavu Cluster; Thirunelveli Cluster; Tiruchirappalli

Baroda Rayon Corporation Textile Park; Sanand Textile Park; Veraval Textile Park; Devarshi Textile Park

Guntur Textile Park; Tarakeswara Textile Park; Brandix India Apparel City; Hindupur Vyapar Apparel Park Ltd.

Textile Park, Siricilla; Kakatiya Mega Textile Park; PochampallyHandloom Park; WhitegoldIntegrated Spintex Park

Support Infrastructure

State Textile University

Textile Development Fund

8 Textile Parks with plug and play facilities and CETP.

Centres of Excellences for technical textiles.

Two apparel parks for exports, Wind power project and Hi-Tech Weaving park is planned

Dedicated textiles and apparels park under Coastal Economic Zone Saurashtra

Hosted the Textiles India 2017 event for sector promotion

Integrated Textile Park at Edlapadu on Guntur-Chennai National Highway

Chennai-Bengaluru Industrial Corridor (CBIC)

Brandix India Apparel City (BIAC) - Visakhapatnam

Apparel Super Hub at textile park in Sricilla to house 5,000 state of the art sewing units

Incentives for promoting textile manufacturing

Sources: Policies by Government of Maharashtra, Tamil Nadu, Andhra Pradesh, Telangana, Industries and Mines Department Gujarat, Directorate of Industries Maharashtra, Ministry of Textiles, Centres of Excellence for Technical Textiles, ASSOCHAM, Synthetic and Rayon Export Promotion Council, News Reports, Press Information Bureau

Aerospace and Defence


Producing major sub systems for Indian & global

demand

Aerospace and defence industry

Sources: Invest India, IBEF, SIPRI, EY industry reports

Industry overviewIndia plans to spend ~US$ 130 b on military modernization in the next 7-8 years, as achieving self-reliance in defence production is a key target for the Government of India

2nd

largest armed forces in the world

~9% Share in global arms imports

~US$1 bDefence exports (2019-20)

► Recent policy changes intend to promote domestic manufacturing viz. FDI limit increased to 74%, ban on imports of certain items, indigenization of spares, separate budget for domestic purchases, etc.

► In FY19, total domestic defence industry stood at ~$ 11 b; private industry was ~US$ 2.6 b; 50 JVs with foreign OEMs in multiple defence segments

MSMEs and start-ups

Tier – II companies

Tier – Icompanies

OEMs and DPSUs

Innovation hub and backbone of

the industry

Sub-systems, assemblies & sub-

assemblies

9 DPSUs, 41 ordinance factories and 6 major Indian

private OEMs

350-400 companies

Over 200 partnerships involving Signing of Memorandum of Understanding (MoUs), Transfer of Technology (ToTs) , Product launches were announced at Defence Expo 2020 >> Industry maturity driving JV opportunities across defence segments

> 8,000 MSMEs

Major foreign private players

General Dynamics

BAE Systems Plc

General Electric Company

Raytheon Technologies Corporation

The Boeing Company

Honeywell International Inc


Govt. targets to create dynamic, robust and competitive defence industry by 2025• Achieve an industry turnover of ~ US$ 25 b• Attracting investment ~ US$ 10 b• Achieve an export target ~US$ 5 b• To become global leader in Cyberspace and AI technologies.

Policy initiatives acting as “Game Changers“ to effect ‘Make in India’

Sources: Ministry of Defence, Press Information Bureau, Janes

Draft Defence Production Policy 2018

• Govt. to invest ~US$ 500 m for each corridor in Northern and Southern part of country• Investment in corridors eligible for 2x multiplier for offsets discharge [Draft DPP 2020]

Defence Industrial Corridors

• Set-up of ~8 defence testing infrastructure facilities as a common facility centre• Government to invest up to 75% of project cost as grant-in aid for private sector operations

Draft Defence Testing Infrastructure Scheme (DTIS)

• Increase in “Indigenization content” for each defence contract• A new category “Buy (Global – Manufacturing in India)” proposed as per which foreign OEM can carry out delivery through its wholly owned subsidiary• Aero-engines and FAB designated as areas of national importance/ Buyer Nominated Equipment• Focus on military materials and Artificial Intelligence/ Virtual Reality/ Augmented Reality• Increased impetus on life cycle costs, performance based logistics & spare parts beyond warranty period• MRO proposed as an offsets discharge avenue for defence and commercial aerospace

Draft Defence Procurement Procedure (DPP) 2020

Electronics industry


Electronics industry: leading India into a technology driven future

Vertical/Item 2015-16 2016-17 2017-18 2018-19

Consumer Electronics 8 9 11 11

Industrial Electronics 6 9 10 12

Computer Hardware 3 3 3 3

Mobile phones 8 3 19 24

Strategic Electronics 3 3 3 4

Electronic components 6 7 8 10

Light Emitting Diodes (LED) Products

1 1 1 2

Total 35 45 55 65

Production profile of electronics manufacturing sector (US$ b)*

*Electronics sector comprises electronic manufacturing and electronic components

Production stood at US$ 65 b in FY19, compared to US$ 56 b in FY18 growing at a CAGR of 25% during the last 4 years.

► Rapid growth and shift in electronics manufacturing over the years

► Industrial electronics are becoming significant along with mobile phones due to increasing income and proliferation of technology in the country

► Availability of skilled manpower at very competitive cost

► Strong government policy push for domestic manufacturing

► ~70-80% of the electronic component market is imports-driven

Sources: MEiTY Annual Report 2018-19, Make in India, DGCI&S, News Reports, Invest India

Investment drivers

Financial Assistance of 25% of Capital Expenditure on Manufacture of Electronic Components and Semiconductors in India

Production-Linked Incentive (PLI) scheme for Large Scale Electronics Manufacturing with incentive of 4% to 6% on incremental sales

Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme for development of infrastructure and amenities in EMCs

New policy initiatives to support electronics manufacturing:


Electronics industry: case of smartphone manufacturing

Sources: MEiTY Annual Report, Make in India, News Reports

2

Further policy package to promote

manufacturing in this sector announced

recently.

Following a phased manufacturing plan and special package in 2017,

India is already the 2nd

largest smartphone manufacturer in the world.

1

Currently India assembling smartphones but imports

its components. Opportunity to further

attract investments for the mobile component part of

the value chain.

3


Parameter Maharashtra Karnataka Andhra Pradesh Uttar Pradesh Telangana


Maharashtra Electronics Policy 2016

Karnataka Electronics System Design and Manufacturing Policy (2017-22)

Andhra Pradesh Electronic Policy

Uttar Pradesh Electronics Manufacturing Policy 2017

Electronics Policy 2016


Fixed Capital Investment subsidy up to 100% of investment.

Reimbursement of 50% of the cost of a prototype.

Interest subsidy of up to 6% to startups and MSMEs.

20% Investment Subsidy for MSME.

25% rebate on land cost.

100% State GST reimbursement on fixed capital investment for a period of 10 years.

100% Reimbursement of net SGST for 5 years.

100% exemption on Electricity duty for a period of 5 years.

50% cost of filing patents to be reimbursed.

Major clusters Santacruz Electronic Export Processing Zone (SEEPZ); Rajiv Gandhi Infotech Park, Ph.II, Talegoan and Khed in Pune

Bengaluru; Mysore; Mangalore; Belgavi; Shivamogga; Tumakuru; Dharwad/Hubballi

Nellore; Chittoor; Visakhapatnam; Vijaywada; Sri City;

ELCINA RaagaMayuri Electronic Park; Kakinada

Noida; Greater Noida; Gautam Buddh Nagar; Yamuna Expressway; Taiwan EMC

Hyderabad EMC; Ranga Reddy EMC;

Duddada Medak EMC;

Vishakhapatnam Special Economic Zone


3 brownfield Electronics Manufacturing Clusters (EMC) at Pune, Aurangabad and Navi Mumbai.

Eight EMCs are notified in the State.

85+ Chip designing houses and 3000+ skilled people.

Hardware park at Dvenahalli.

Brownfield ESDM cluster facilitation centre at Mysuru.

Common Instrumentation Facilities in Jalahali, Mangaluru, and Shivamogga.

Electronics Manufacturing Cluster at Sector Ecotech VI and VII, Greater Noida, Uttar Pradesh.

Set up a 50-acre Intel design and engineering centre with an investment of US$100 million.

Incentives for promoting electronics manufacturing

Sources: UP Electronics Policy 2017, Invest Karnataka 2020, Department of Industries Andhra Pradesh, MeiTY, Govt. of Maharashtra, Electronic policies of selected states, UP Development Systems Corporation Ltd.

Auto components industry


4th Largest automobile market in the world with potential to grow more

All figures for 2019Source: IBEF, SIAM, EMIS India Automotive Sector Report, News Report, IBEF Report February, 2020

7% of India’s GDP

4.6 mn vehicle exports volumeUSA, Mexico, South Africa, Bangladesh, Nepal

~5,000 car dealerships across 523 cities

Availability of highly trained manpower

US$ 24 b FDI inflows between 2000-2019

Category Domestic sales (mnunits, 2018-19)

Car penetration in 2019

Two wheelers 21.2 102 per 1,000 people

Passenger vehicles 3.4 28 per 1,000 people

Commercial vehicles 1.0

Pro

ducti

on c

oncen

trate

d in

mult

iple

clu

ste

rs a

cro

ss I

ndia

Pune

ChennaiBangalore

NCR

Ahmedabad Indore

Major players

Toyota Motor Corporation

Yamaha Motor Co Ltd.

Honda Motor Co Ltd.

Hyundai Motor Company

Suzuki Motor Corporation

BMW (Bayerische Motoren Werke)

Nissan Motor Co Ltd.

Volkswagen Aktiengesellschaft

Renault


India has a mature policy framework, focussed on new technologies and domestic production

Source: SIAM, EMIS India Automotive Sector Report, EY 2019 report

► India follows the European system for regulating the sector

► BS-VI emission norms (EURO VI), applicable from April 1, 2020

► Push towards using CNG as alternative fuel

Over 700 auto component

players, servicing both local and global markets

3

1

2Government

policy support

Focus on reducing

emission levels

► ~US$ 14 b in auto component exports in FY19 to USA, Turkey, Germany, Brazil, Mexico etc.

► OEMs make up 85% of totally industry turnover and replacement market contributes 15%

► Import duty structure to incentivise domestic manufacturing

► Strong push towards EVs

► Demand side -- Reduced GST rate of 5% against 29% - 50% on other vehicles

► Supply side – Customs duty structure that incentivises local EV and battery manufacturing

► Ambiguity regarding policy framework for introduction of hybrid cars


Parameter Maharashtra Haryana Madhya Pradesh Gujarat Tamil Nadu


Electrical Vehicle and Related Infrastructure Policy 2018

Part of industrial investment and business promotion

Electric Vehicle (EV) Policy 2019;

Manufacturing sector schemes; EV Policy 2019

Automobile and Components Policy; EV Policy 2019


100% Fixed Capital Investment subsidy.

20% reserved area for Medium, small and micro enterprises (MSMEs) in new industrial estates.

Interest Subsidy Scheme @6% for auto component manufacturers (MSMEs) for 5 years.

Reimbursement of 75% SGST paid up to 7 years.

50% of fixed capital investments and 25% of the value of the charging station for first 300 units.

10% of FCI for first two units of EV manufacturing.

Interest Subsidy is provided @ 7% for MSMEs and 2% for Large Industries.

Reimbursement of up to 90% of SGST for a period of 10 years depending on fixed capital investment.

100% reimbursement of SGST paid on the sale of EVs manufacture, sold and registered for use in the State.

Major clusters Mumbai, Pune (Chakan), Nashik, Aurangabad, Nagpur

Gurugram, Faridabad, Manesar, Rewari, Panchkula

Indore; Pithampur; Mandideep; Govindpura

Ahmedabad, Sanand, Mehsana Hansalpur, Vithalpur; Dholera; Rajkot Vadodara

Chennai –Sriperumbudur, Oragadam, Maraimalai


Automotive Research Association of India R&D institute;

Auto Cluster Development and Research Institute.

National Automotive

Testing Research R&D Infrastructure Project

Indo-German tool room;

MSME Technology Center;

Training Institute in Pithampur Auto Cluster

Maruti Suzuki Japan-India Institute for Manufacturing (JIM);

Hyundai Motor Training Centre in; 20 Superior Technology Centres

National Automobile Testing and R&D center;

Daimler R&D center;

Renault and Nissan R&D Center;

Ford Technical Support center.

Incentives for promoting auto manufacturing

Sources: Maharashtra EV Policy, Industries and Commerce Department of Haryana, Madhya Pradesh EV Policy, Industries and Mines Dept. Gujarat, Tamil Nadu EV Policy,

Pharmaceuticals


Indian pharma sector: a key sector with potential for growth

Achieving the optimal

balance

Gro

wth

Sources: Press reports, Make in India, Economic Survey 2019-20,

McKinsey Report:_India_Pharma_2020_Propelling_Access_and_Acceptance_Realising_True_Potential

CAGR: Compound Annual Growth Rate

► India supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine demand in UK

► Ranks 3rd globally in volume terms

► Ranks 10th globally in value terms

International standing

► Domestic production stood at US$ 38 b in FY19

► Pharmaceutical exports stood at US$ 14 b in FY19 (up to Dec 2018)

Size of market: export and domestic

► Rise in public healthcare spending coupled with rising patient awareness

► Expanding insurance coverage across the income pyramid

► Promotion of Domestic Manufacturing of critical Key Starting Materials (KSM) / Drug Intermediates and Active Pharmaceutical Ingredients (API) in the country – investing in industrial parks and production linked incentives

Growth drivers

Major players

► Government of India spends 1.6% of its GDP on healthcare in FY20- leaving much room for growth

► India’s pharmaceutical spending is predicted to grow at 8-11% CAGR during 2019-23 to reach a size of US$ 28-32 b

Spending

Johnson & Johnson

Cipla Limited

CadilaHealthcare Limited

Aurobindo Pharma Limited

Piramal Enterprises Limited

Eli Lilly and Company

Pfizer Inc

Torrent Pharmaceuticals Limited


Pharma: advantage India

India has an excellent proven track record in R&D

201836% of total

final approvals

201740% of total

final approvals

2019 40%, of total

final approvals

In the decade 2010-2019; US FDA approved total 5,768 ANDA final approvals of which Indian pharmaceuticals companies has bagged 2,046

approvals i.e. over 35%.

26%

28%18%

13%

13%

2%

EU US

India China

RoW Canada

India is projected to be a frontrunner in drug discovery outsourcing

*ANDA: Abbreviated New Drug ApplicationSources: US FDA and drug administration, Press reports

% of API manufacturing facilities for all drugs

India has 2nd highest number of FDA approved plants outside USA

61

77

76

304

290

336

846

813

837

0 500 1000

2017

2018

2019

ANDA Approvals of Indian Drugs

'Total US FDA Approvals Final FDA Approvals to Indian Cos

Tentative Approvals to Indian Cos


New paradigms: medical equipment and devices industry

Source: EY Analysis, IBEF

Strong domestic market potential:

India ranks in top 20 in the world by market size. Indian medical devices industry is growing at a CAGR of 16% against global growth rate of 4% in the sector

The industry is valued at US$ 5 b and contributes only 4-5 % of India’s total healthcare sector of US$ 97 b

The per capita spend on medical devices in India is lowest among BRIC countries at US$ 3 ($ 7 in China, $ 26 in Brazil and $ 47 in Russia) and other developed economies like the USA ($ 415)

The industry comprise of 14,000+ different product types with India producing 750-800 products

Availability of trained labour and right governmental policy support

Promotion of Domestic Manufacturing of Medical Devices in the country by investing in medical devices parks and production linked incentives of 5%

BRIC: Brazil, India, Russia , China

Capital goods


Capital goods and electrical equipment: government spending on infrastructure boosts domestic market

194

277 269

196 182157

FY20 FY21 FY22 FY23 FY24 FY25

► 71% of the proposed infrastructure investments of US$1.5 Trillion by India will be across Road, Rail, Energy and Urban infrastructure

► Currently India produces US$ 43 b of capital goods and electrical equipment

► 10% share of capital goods in total manufacturing activity and 2% of GDP

► Indigenous production is broadly 40% of total demand for engineering and capital goods equipment

Industry overview

► Supportive macro trends like rapid urbanization, growth in infrastructure and demand for energy across industries

► Strong domestic demand on the back of planned infrastructure investment by Government

► Push for domestic manufacturing as currently India imports 40% of capital goods used domestically

► Focus on digitisation and smart cities, thereby opening markets for new and innovative products

► Availability of established players and raw materials

Strong domestic market

Planned infrastructure investment (US$ b)

Planned government spending of US$ 1.5 t on infrastructure over the next 5 years

Major players

Sources: Taskforce Report on National Infrastructure Pipeline, IBEF, Invest India, EXIM Data Bank (HS Codes: 84 & 85), All India Association of Industries

General Electric Company

Honeywell International Inc

ABB Ltd

Caterpillar Inc


India has well established industry clusters with developed value chains and talent hubs to support manufacturing activity

Delhi, NCR

Ahmedabad

Mumbai

Bengaluru

Hyderabad

Chennai

Pune

► ABB Ltd.► Mitsubishi Corporation► Havells India Ltd► BHEL► Crompton Greaves

► ABB Ltd.► Crompton Greaves► Siemens Akt.► Bosch Ltd.► Godrej Industries► Schneider Electric

► ABB Ltd.► Crompton Greaves► Siemens Akt.► Sterlite Technologies► Philips N.V.► Godrej Industries► Schneider Electric

► BHEL► Siemens Akt.► Philips N.V.► Schneider Electric

► Havells India► BHEL► Bosch Ltd.► Philips N.V.► Yaskawa Electric► Schneider Electric

► ABB Ltd.► Ametek Inc.► Crompton Greaves► Honeywell Intn’l Inc► Siemens Akt.

► Bosch Ltd.► Phillips N.V.► Yaskawa Electric► Godrej Industries► Siemens Akt.

► Bosch Ltd.► Philips N.V.► Yaskawa Electric► Godrej Industries

Sources: Invest India

How EY can help

05


How EY can support

► Market assessment study and evaluation of possible collaborations and determine entry strategy - contract manufacturer/ JV/ subsidiary

► Comparative assessment of India and ASEAN countries

► Detailed SWOT on opportunity and analyse potential incentives and benefits that could influence decision and engage with government and stakeholders to determine feasibility

► Assistance in defining and executing advocacy strategy of global group of companies with Central or state governments.

► Assistance in finalizing suitable location within India – state, region, district, city

► Based on chosen model, execute the plan, including transaction advise, structuring the arrangement, tax and regulatory compliance and approvals, negotiations with stakeholders.

► Assistance in availing incentives under various state government policies.

► Assistance in applying and complying with various state government rules and regulations (NOCs, approvals etc.)

Assess and

evaluate

Analyzeand

advocateImplement

Contact Us

Ganesh RajPartner, Infrastructure, Industrial &

Consumer Leader

Email: [email protected]

Phone: +91 9810705058

Sameer GuptaPartner, Tax Markets Leader


Phone: +91 9820155059

Sudhir KapadiaPartner and National Tax Leader


Phone: +91 9892333384

mailto:[email protected]



Ou

r o

ffic

es

Ahmedabad22nd Floor, B Wing, Privilon,Ambli BRT Road, Behind IskconTemple, Off SG Highway, Ahmedabad - 380 015Tel: + 91 79 6608 3800

Bengaluru6th, 12th & 13th floor“UB City”, Canberra BlockNo.24 Vittal Mallya RoadBengaluru - 560 001Tel: + 91 80 6727 5000

Ground Floor, ‘A’ wingDivyasree Chambers # 11, O’Shaughnessy RoadLangford Gardens Bengaluru - 560 025Tel: + 91 80 6727 5000

Chandigarh1st Floor, SCO: 166-167Sector 9-C, Madhya MargChandigarh - 160 009Tel: + 91 172 671 7800

ChennaiTidel Park, 6th & 7th Floor A Block, No.4, Rajiv Gandhi SalaiTaramani, Chennai - 600 113Tel: + 91 44 6654 8100

Delhi NCRGolf View Corporate Tower BSector 42, Sector RoadGurgaon - 122 002Tel: + 91 124 443 4000

3rd & 6th Floor, Worldmark-1IGI Airport Hospitality DistrictAerocity, New Delhi - 110 037Tel: + 91 11 4731 8000

4th & 5th Floor, Plot No 2B Tower 2, Sector 126 NOIDA - 201 304 Gautam Budh Nagar, U.P.Tel: + 91 120 671 7000

HyderabadTHE SKYVIEW 10 18th Floor, "Zone A"Survey No 83/1, RaidurgamHyderabad – 500032Tel: + 91 40 6736 2000

Jamshedpur1st Floor, Shantiniketan Building Holding No. 1, SB Shop Area Bistupur, Jamshedpur – 831 001Tel: + 91 657 663 1000

Kochi9th Floor, ABAD NucleusNH-49, Maradu POKochi - 682 304Tel: + 91 484 433 4000

Kolkata22 Camac Street3rd Floor, Block ‘C’Kolkata - 700 016Tel: + 91 33 6615 3400

Mumbai14th Floor, The Ruby29 Senapati Bapat MargDadar (W), Mumbai - 400 028Tel: + 91 22 6192 0000

5th Floor, Block B-2Nirlon Knowledge ParkOff. Western Express HighwayGoregaon (E)Mumbai - 400 063Tel: + 91 22 6192 0000

PuneC-401, 4th floor Panchshil Tech ParkYerwada(Near Don Bosco School)Pune - 411 006Tel: + 91 20 4912 6000

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