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Maharashtra
Electronic System Design and
Manufacturing Sector (ESDM)
November 2014
Knowledge Partner
Magnetic
Maharashtra
Preface
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The Maharashtra ESDM Sector Profile has been developed by Ernst & Young India LLP, the Knowledge Partner to Maharashtra Industrial Development
Corporation to provide hand holding assistance to investors.
The intention is to provide executives a quick overview to the ESDM Sector in the State.
The complex decision-making process involved in undertaking foreign operations requires an intimate knowledge of a countrys and a States commercial
climate as well as recognition of the fact that this climate is continuously evolving. Companies doing business in India, or planning to do so, would be welladvised to obtain current and detailed information from experienced professionals. The information presented in this book has been validated w.e.f
September 2014.
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Macroeconomic Profile
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- Economy
8.43%
CAGR of GSDP at
constant prices over
the last 5 years
13.7
10.4
7.5
2008-09
12.0
8.6
2009-10
2010-11
2011-12
2012-13
The manufacturing sector contributes a significant 18.51 per cent to the states GSDP. Amongst the 10 states with the highest GSDP (Gross
State Domestic Product) in India, Maharashtra is one of the leading states in terms of contribution of manufacturing share to the GSDP.
Maharashtra has a Per Capita Income (PCI) of INR 1,07,670. The state has the highest per capita income amongst the 10 states with the highest
GSDP in India.
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Macroeconomic Profile
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- Industry
Highest Industrial
Output in the nation
INR 10.05 Lakh
Crore (USD 167.5
Billion)
17.41%
Maharashtras share
in Indias total
Industrial Output
10.05
7.85
5.20
2007-08
6.00
2008-09
6.24
2009-10
2010-11
2011-12
The state recorded the highest Industrial Value Addition in the nation. The Gross Value Added by all industries in the state amounted to INR 1,79,222
crore (USD 29.87 billion) in the year 2011-12, which is 59 per cent greater than the value addition of its closest follower.
Maharashtra has the second highest number of factories and has one of the lowest number of industrial disputes in the country.
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Macroeconomic Profile
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- Investments
47,359
LEADER
One Third
Maharashtras share
in Indias FDI Inflows
over the period 2000
- 2014
27,669
2010-11
2011-12
2012-13
Maharashtra has attracted INR 3,16,082 crore of FDI over the period 2000- 2014, which is almost one-third of the nations total FDI inflows received
over the same period.
New investment projects announced in 2013-14 which would be set in Maharashtra are proposed to bring in INR 27,795 crore of investment in the state.
In 2013-14, the state contributed 10.86 per cent of the total projects completed in India in terms of investment value. With a total of INR 28,406 crore of
investment projects completed in the state, Maharashtra is one of the leading states in the country in terms of project completion (by investment value).
Infrastructure
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More than 99 per cent of the villages are well connected with all
weather roads in the state
9.3 percent of total railway network in the country
2 Major Railway zones
Dry Ports, Inland Container Depots, Truck terminals and Railway
sidings for easy freight movement
LAND
ENERGY
Infrastructure
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To Madhya Pradesh
To Gujarat
Shirpur
Nagpur
Jalgaon
Amravati
Wardha
Akola
Nasik
Juhu
Yavatmal
Aurangabad
Ozhar
Sinnar
Shirdi
Gondia
Bhandara
Gadchiroli
Chandrapur
Jalna
National Highway
To Chhattisgarh
Dhule
To Madhya Pradesh
Railway
Airstrips
Domestic Airports
Thane
Mumbai Rajgurunagar
Raigarh
Ahmednagar
Beed
Latur
Pune
Baramati
Satara Phaltan
Dighi
Gangapur
Osmanabad
Solapur
Ratnagiri
International Airport
Nanded
To Telangana
Key Locations
Major Ports
Proposed Gas
Pipeline Network
Karad
Sangali
Kolhapur
To Telangana
To Karnataka
Sindhudurg
To Goa
To Goa
ESDM Sector
in India
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3.5
3.9
4.1
4.5
5.1
5.7
15%
1%
Electronic products
Electronic components
5%
Semiconductor design
79%
2010
2011
2012
2013
2014
2015
Electronics
manufacturing services
ESDM industry in India is estimated to have clocked revenues of INR 4 Lakh Crore (USD 68.3 billion) in 2012. The ESDM industry in the country is expected
to grow at a CAGR of 9.9 per cent from 2010 to 2015, to reach USD 94.2 billion. This is more than twice the growth rate of the global ESDM market.
Domestic revenues accounted for 70 per cent of the industry revenues in 2012 while exports accounted for the remaining 30 per cent. Most of the export
revenues are generated from the export of semiconductor design and electronic products while electronic components and electronic manufacturing services
constitute a small portion of the exports.
ESDM Sector
in Maharashtra
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17.52
20.30
13.82
10.11
2007-08
LEADER
2008-09
2009-10
2010-11
2011-12
*Gross Value of Output : Manufacture of Computer, Electronic and Optical Products; Electrical
Equipment
With a share of almost 20 per cent in Indias total, Maharashtra has the highest industrial output in the Computer, Electronic & Optical Products. Electrical
Equipment manufacturing sector.
The industrial output of the Computer, Electronic and Optical Products; Electrical Equipment manufacturing sector of Maharashtra has grown at a healthy
CAGR of 19.04 per cent over 2007-08 to 2011-12.
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ESDM Hubs
In Maharashtra
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Pune
Pune is one of the most industrially developed districts in
India.
Punes strong educational infrastructure has earned it the
name of Oxford of the East and an abundant availability of
skilled labor has attracted many electronic manufacturing
companies.
KHED, PUNE
TALEGAON, PUNE
ESDM HUBS
Talegaon and Khed are the two ESDM hubs in Pune. Factors
such as locational advantage, connectivity and industrial
infrastructure have made these locations hot spots for
electronic manufacturing companies.
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Dedicated Clusters
Policy Support
Strategic Location
Educational
Infrastructure
Skilled Labor
Supplier / Vendor
Base
Strong Domestic
Market
ESDM
Sector in
Maharashtra
Access to Foreign
Markets
Maharashtras top notch educational institutions have facilitated the state to become an R&D hub for the ESDM sector. Moreover, Availability of low cost
skilled labor has driven companies to establish their global manufacturing hubs in the state and export their products overseas.
India currently imports more than half of its requirement for electronic equipment. Maharashtras developed industrial infrastructure, a large supplier / vendor
base and an excellent inter state connectivity has attracted investments from many companies that aim to tap the nations growing demand for electronic
equipment.
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Human Capital
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SKILLED WORKFORCE
The state has a literacy rate of 82.34 per cent with a large base of
skilled and industrial labour.
The state has a total of 2298 technical institutions with an intake
capacity of 4,49,121. It also houses 781 ITIs (Industrial Training
institutes) with an intake capacity of 1,17,747.
There are 20 universities in the State of which four are agriculture
universities, one university for health science course, one university for
veterinary science, one for technology and 13 other general
universities.
In addition to these, there are 21 deemed universities in the State.
The state is home to some of the most reputed national R&D
institutes, viz., the Centre for Development of Advanced Computing
(C-DAC), the Bhabha Atomic Research Centre, the National
Environmental Engineering Research Institute, the National Chemical
Laboratories and the Tata Institute of Fundamental Research. One of
the well-known Indian Institutes of Technology (IITs) is located in
Mumbai.
Pune is also an important education hub of India, often referred to as
the Oxford of the East.
DEDICATED INSTITUTIONS
Table: Technical Educational Institutions in Maharashtra (2013-14)
Type of
Institutions
No. of
institutions
Intake
capacity
Enrolment
Engineering
1074
3,45,343
6,20,946
Master in
computer
application
148
13,385
23,614
Management
science
516
57,392
27,689
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Policy Support
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Stamp Duty
Exemption
Interest Subsidy
Cleaner Production
Incentives
Water Energy
Subsidy
Water conservation
Incentives
VAT + CST
Abatement
Electricity Duty
Exemption
Royalty Exemption
DETERMINING FACTORS
Employment
Location
Under the state's new Industrial Policy 2013, Mega and Ultra Mega projects can qualify for fiscal incentives upto 100 per cent of the fixed capital investment.
Moreover, a 10 per cent additional incentive on top of the above incentives is provided by the state if the project creates double the employment required
for the eligibility.
In February 2014, the Indian government approved setting up of two semiconductor units by two consortia one led by Jaiprakash Associates and the other
by Hindustan Semiconductor, entailing investments of INR 51,550 crore. The cabinet also approved that incentives that will be made available to the above
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consortia, will also be extended to other players who show interest in setting up of similar semiconductor plants.
Policy Support
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THANE
MUMBAI
NAVI
MUMBAI
All units within these clusters will be eligible for benefits under
the Modified Special Incentive Package Scheme (M-SIPS).
PUNE
NASHIK
ELECTRONICS
MANUFACTURING
CLUSTER
The above incentives are available for units all across the value
chain starting from raw materials including assembly, testing,
packaging and accessories and covering all the 29 verticals of
ESDM products.
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Key Players
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Videocon
Sterlite
Portescap India
LG Electronics
PG Electroplast
Transasia Bio-Medicals
Epitome Components
Trend Electronics
Finolex
Bajaj
Schnider Electronic
Epcos India
Reliance Industries
Honeywell
Qualcomm
Applied Micro
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Growth Stories
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HONEYWELL INDIA
Honeywell has a significant presence in Maharashtra with its
automation and turbocharger manufacturing facilities based in Pune,
built with an investment of around INR 500 crore. This facility
provides full time employment to nearly 3,000 people in the state,
besides indirect employment and livelihood generation through
ancillary industries.
HAIL's production facility at Pune is among the few certified not just
by Honeywell but also by several government and defense
establishments. HAILs facility also a dedicated export facility under
Electronic Hardware Technology Park (EHTP).
In August 2014, Honeywell announced the launch of its
manufacturing facility in Pune, Maharashtra. This 75,000 sq. ft. stateof-the-art facility for Honeywell Automation India Limited (HAIL)
will significantly expand Honeywells manufacturing capabilities in the
country.
The new facility will integrate manufacturing, factory testing, quality
control and advanced manufacturing engineering for Honeywells
automation business in India.
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Contact Us
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Shri.Yuvraj Poman
Head Office
26-8-2014
Disclaimer
Maharashtra Industrial Development Corporation (MIDC) has engaged Ernst & Young LLP. (EY) to prepare this document and the same has been prepared by EY in consultation with MIDC. This document is for information purposes only. While due care has been taken
during the compilation of this document to ensure that the information is accurate to the best of EY knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.
EY does not assume any liability or responsibility to any person for the outcome of decisions taken by such person as a result of any reliance placed on this presentation. EY shall not be liable for any direct or indirect damages that may arise due to any act or omission on the
part of the user due to any reliance placed or guidance taken from any portion of this presentation.
2014
All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by MIDC and Ernst & Young. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic
means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of MIDC.
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