Magnificent MaharashtraOpportunities Unlimited

Knowledge Partner

Information Technology

An engine for Global Economic Growth

Maharashtra Profile

With 9.4% of India’s population, Maharashtra has 18.4%

of industrial production.

Soci

alEc

onom

icIn

dust

rial

Maharashtra:§ Highest State Domestic Product

§ Highest aggregate bank deposits and gross credits

§ Highest contribution to India’s corporate tax

collections (61%)

§ Most urbanized State

Soci

alEc

onom

ic

* Maharashtra’s GSDP contribution to India’s GDP is at current prices

Source: Socio-Economic Review , Maharashtra 2010-11; Annual Survey of Industries 2008-09

42.4

76.9

8.5

8.7

0.0 20.0 40.0 60.0 80.0 100.0

Urbanization

Literacy Rate

Industry growth rate

GSDP growth rate

Percentage in Maharashtra

9.4

9.4

14.7

15.3

18.4

27

30

33

38

87

Geographical Area

Population

GDP contribution

Employment

Industrial Output

Exports

Software Export

Bio Tech

Auto & Auto Components

Wine

Percentage of Maharashtra in India

Maharashtra Profile

Road Road Connectivity India Maharashtra

Total Length of National Highway (in km): 70,934 4,376

Total Length of State Highway (in km): 1,31,899 34,102

Total Length of Major District Roads(in km): 4,70,000 49,901

Total Length of Other District and Village Roads (inkm): 26,50,000 1,51,661

- 97.5 % of the villages are well connected with all weather and 2 % by fair weather roads in the state.

Railway Railway Connectivity India Maharashtra

Total Length of Railway network (in km): 64,755 5,983

-The state encompasses 2 major railway zones; the Central and Western- 9.4 % of total railway network in the country-The railway route length per 1,000 sq. km of geographical area is 19.44 km in the State as against 19.69 km in the country. (as on 31st March, 2010)

Source: GoM (2010), Economic Survey of Maharashtra 2010-11, Mumbai: Directorate of Economics and Statistics, Planning Department.

Source: GoM (2010), Economic Survey of Maharashtra 2010-11, Mumbai: Directorate of Economics and Statistics, Planning Department.

Maharashtra Profile

Airport Airport Connectivity India Maharashtra

Total No. of Airport: 449 22

Total No. of International Airports: 17 3

Total No. of Domestic Airports: 114 5

- JNPT in Maharashtra is India's largest container port (59.4%).- 20.5% of the total cargo traffic of the major ports in India is handled by the state (3rd highest)

Port Port Connectivity India Maharashtra

Coast-line (in km): 7,517 720

No. of Major Ports: 12 2

No. of Minor and intermediate Ports: 187 48

Container traffic (in TEU million): 6.89 4.15

-Maharashtra is well connected to major cities in the USA, EU,Asia and other Indian metropolitan cities.-The state has the highest number of airports in the country .

Source: MIDC, AAI and MADC

Source: GoM (2010), Economic Survey of Maharashtra 2009-10, Mumbai: Directorate of Economics and Statistics, Planning Department.

Maharashtra ProfilePower Power Facilities India Maharashtra

Electricity Generation Capacity (in MkWh): 77,15,510 81,345

Installed Capacity (in MW): 1,73,626 19,166

-Out of 1396 Government ITIS being developed in India in PPP mode, 266 are in Maharashtra- India’s 18% of ITIs is in the state with a 20 % seating capacity

IT/ ITeS IT/ITeS Facilities India Maharashtra

Total no. of Industrial Training Institutes: 2,133 388

Total no. of Industrial Training Centres: 5,906 297

Total seating capacity: 11,15,628 1,21,744

- Maharashtra has the largest installed electricity generation capacity

Source: dget.nic.in, April 2010

- Highest number of approved SEZ in the country are in Maharashtra

SEZ Special Economic Zones India Maharashtra

Notified SEZs: 377 63

Approved SEZs: 738 143

Source: http://www.sezindia.nic.in/index.asp & Maharashtra Industries Department, September 2010

Source: GoM (2010), Economic Survey of Maharashtra 2009-10, Mumbai: Directorate of Economics and Statistics, Planning Department.

Global IT Sector

Global IT services industry

► Across the world, computing hardware spending increased by6.4% in 2010

► IT services spend increased by 1.4 per cent in 2010, withinwhich IT outsourcing grew by 2.4%, BPO grew by 4%. WithinIT outsourcing, global sourcing grew by 10.4% in 2010

► Worldwide software spending rose by 3.7% in 2010

IT Service Industry Structure

BPO Engineering Service

Computer Services Infrastructure Management Services

Offshore/Outsourcing Packaged software (Software Products)

Research and Development (R&D) Remote Infrastructure Management (RIM)

Source: The IT-BPO Sector in India – Strategic Review 2011 Executive summary, Nasscom

Global IT spending has increased by 4% on 2010

INDIA IT & BPO SECTOR

57.00%24.00%

19.00% IT Services

BPO

Engineering services and software product

Indian IT services industry

► The sector is expected to grow by 19.2% and reachUSD 88.1 billion in 2010-11 as compared to USD 73.9billion in 2009-10

► The domestic market (including hardware) grew by16% in FY2011, to reach USD 17.35 billion

► The data center services market is forecast to grow atCAGR of 22.7% between 2009 to 2011

► The industry is expected to add 2,40,000 jobs inFY2011, thus providing direct employment to over2.5 million and indirectly employing 8.3 million people

► Export revenues are estimated to gross USD 59billion in 2010-11 as compared to USD 50 billion in2009-10

► US and UK IT services are witnessing a shift towardsoutsourcing services.

► Indian software product segment is estimated toreach USD 3.46 billion

Revenue break-up trend and contribution to GDP

05

101520253035404550

FY04 FY05 FY06 FY07 FY08 FY09

USD

bill

ion

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Export Domestic % of GDP

Break-up of exports by service line, FY11

Source: Information Technology Annual Report 2010-11

Hardware and IT Services account for 75% of total revenues

Indian BPO services industry

► In 2010, the domestic BPO market was worthUSD 1.1 billion. The domestic BPO segment isexpected to grow by 16.9% to reach USD 2.8billion in FY2011.

► Drivers of demand are voice based services,emerging verticals, new customer segment andvalue based transformational outsourcingplatforms.

► BPO Exports is expected to grow from USD 12.4billion in 2009-10 to USD 14.2 billion in 2010-11

► India BPO exports segment is estimated to employ7,68,000 knowledge professionals in 2009-10

► BPO sector evolution - BPO 3.0 - characterised bygreater breadth and depth of services, process re-engineering across the value chain, increaseddelivery of analytics and knowledge based servicesthrough platforms, strong domestic market focusand SMB centric delivery models

The IT-BPO sector’s revenue is estimated to account 6.4% of country’s GDP in 2010-11

3.14.6

6.3

8.4

10.9

0.3

0.6

0.9

1.1

1.6

0

2

4

6

8

10

12

14

FY04 FY05 FY06 FY07 FY08

USD

bill

ion

Domestic Exports

CAGR: 38%

Source: NASSCOM IT-BPO factsheet,” NASSCOM website, http://www.nasscom.org

Indian BPO revenues

MAHARASHTRA - IT SECTOR

Maharashtra IT/ITeS Industry –The number story

► 90% of the India IT-BPO industry is concentrated in 7cities in India, including Mumbai and Pune in Maharashtra

► Maharashtra contributes over 30 per cent of thecountry's total export of software

► The State houses more than 1,500 software units

► Maharashtra’s IT sector grew at 24% from USD 2.091billion to USD 8.786 billion in 2008-09

► Pune witnessed the highest IT exports, contributing morethan half of the total at around USD 5,228 million,followed by Mumbai at USD 3,346 million in 2008-09

► The STPI units in Nagpur, Nashik, Aurangabad, andKolhapur also showed noteworthy growth

FDI in Information Technology Sector Maharashtra

Sector Total projects Investment (INR. crore)

IT/ITeS 762 12,765Source: IDM September 2010

Maharashtra IT sector is one of the topnotch sector in the State with maximum thrust, development and investments

Recent Initiative in Maharashtra e-Governance► Open Technology Centre (OTC)

► National e-Governance Plan (NeGP)

► Electronics Hardware Manufacturing

► Common Service Centres (CSCs)

► State Data Centres (SDCs)

► Community Information Centres (CIC)

► National Knowledge Network (NKN)

► State Wide Area Networks (SWANs)

► E-complaints System for the police

Maharashtra IT/ITes Industry

► Maharashtra offers software products for allindustry verticals such as Automotive,Engineering, Automation, Networking andHardware, Electronics, Energy, Telecom, Oil andPetroleum, Hospitality, Healthcare, FinancialServices, Logistics, Retail, e-Governance,Education etc.

► The majority of revenue for the State comesfrom US and Europe

► Aurangabad, Nagpur and Nashik are theemerging IT centres in Maharashtra

► Infosys Pune complex is the second largestfacility worldwide

IT Companies present in Maharashtra

CityNumber of IT / ITeS companies registered with

STPI as on March 2008

Mumbai 800

Pune 471

Nagpur 72

Aurangabad 15

Nashik 11

Kolhapur 3

Key IT locations in Maharashtra

Aurangabad

Nashik

Kolhapur

PuneThane

Mumbai

According to Nasscom and AT Kearney’s report ‘Assessment Of 50 Leading Cities', Puneis a leader in BPO services

Maharashtra IT/ITES Industry Value Chain

Research & Development

Product / Software Development

Consulting Outsourcing

IT Industry Value ChainIT Industry Value Chain

▪ Mumbai▪ Pune

▪ Pune▪ Mumbai▪ Thane▪ Nashik

▪ Mumbai▪ Pune▪ Nashik▪ Nagpur▪ Thane

▪ Mumbai▪ Pune

Key Strengths:

► 32 public IT park has been established by MIDC and CIDCO and four are in pipeline, with 4351 units andan investment of INR 18000 crore

► Maharashtra has 425 private IT park, out of which 88 are functional

► The prime IT/ITeS cluster are Greater Mumbai, Pune,Thane and Nashik

► Maharashtra has a strong presence across the value chain owing to its strong skilled manpower, powerfulventure capital interest, horizontal and vertical expansion of existing customer base into new markets, costcompetitiveness, superior infrastructure and Govt. support

Advantage MaharashtraHighest FDI in the Country

Single Window Clearance Mechanism

Investor Facilitation Cell

Highest contribution to India’s GDP

Strong presence across value chain

Presence of all top IT, BPO players

India’s financial hub

Abundant Land Bank

Strong Infrastructure

Worldwide Connectivity (Ports,Airports)

Abundant Natural Resources

Skilled Manpower and premiere R&D Centers

425 IT parks59 IT/IT Enabled

SEZ

Well established ITHubs – Pune,Mumbai

IT/ITeS Policy 2009Advanced infrastructureand superior connectivity

Business friendlyenvironment

Expanding ServiceLine

Strong InvestorAfter Care andsupport practices

Advantage MaharashtraAdvantage Maharashtra

MAHARASHTRA – Policy & Framework

Maharashtra IT Policy SupportIT/ITeS Policy - 2009

Source: IT/ITeS policy 2009

Package Scheme of Incentives, 2007

Key features of the policy

► Additional FSI for IT parks

► Recreational, residential and other support

facilities

► Eligible IT-ITES units covered under PSI will

be exempt from payment of Electricity Duty

► IT/ITES units will be supplied power at

industrial rates

► Property tax shall be levied on IT-ITES units

at par with residential rates

► VAT on sale of IT products will generally be

charged at the minimum floor rate

Key features of the PSI

►100% waiver of Stamp Duty

►Exemption from Electricity Duty

►Interest subsidy

►IPS (Industrial Promotion Subsidy)

►Refund of Octroi / Entry Tax in lieu of Octroi

►Special Incentives for Units coming up in the

low Human Development Index Districts of :

Gadchiroli, Yavatmal, Jalna, Nandurbar,

Washim, Dhule, Nanded, Osmanabad,

Buldhana, Chandrapur

Source: PSI, 2007

MAHARASHTRA – IT MANPOWER

Intellectual Capital of MaharashtraIT Manpower in Maharashtra

Sector Institutions

Capacity Admitted Students

Engineering 774 2,61,625 2,09,025Management Sciences

366 34,995 28,644

Industrial Training Institutes

726 1,49,156 1,34,712

Key IT Training Institutes in Maharashtra

Centre for Development of Advanced Computing

System Research Institute

Information Systems Audit and Control Association,(ISACA)

Centre for Materials for ElectronicsTechnology

Indian Institute of Science Education and Research(IISER)

Maharashtra IT/ITes Industry Manpower

► Maharashtra offers a sound educationalInfrastructure With maximum number ofuniversities in the country

► National Centre for Software Technology(NCST) an autonomous R&D Organisation ofthe Department of Electronics, Government ofIndia is present in the State

► Indian Institute of Technology offers variedcourses for IT sector

► NIIT, a part of the HCL group, has alliance withMicrosoft Corporation as training partner inIndia for training in Microsoft technologies andproducts and has its institutes at various locationin Maharashtra

► Xavier Institute and Narsi Monji Instituteof Management Studies imparts training onMicrosoft products and technologies

Source: Maharashtra Economic Survey 2010-11

MAHARASHTRA – IT INVESTMENT REGIONS

IT Parks & SEZ in Maharashtra

To Goa

To Gujarat

To Andhra Pradesh

To C

hhattisgarh

To Karnataka

To Madhya Pradesh

Mumbai - 162

Pune - 153

Nagpur -2

Aurangabad - 3

IT Parks in Maharashtra (March 2011)

Thane - 100

IT SEZ in Maharashtra (March 2011)

Total investment in IT Parks INR7750 Crores

Raigad - 1

Approved & Notified IT SEZ in Maharashtra

Vidarbha Region 1Marathwada Region 1Western Maharashtra Region 28

Konkan Region 26Total 56

1 SEZ

28 SEZ

Source: Industries Department, Maharashtra

Nashik - 4

•The above figures denote the private IT parks for which Letter of Intent (LOI) is issued as on March 2011

•Source: Directorate of Industries, Maharashtra

1 SEZ

Key Thrust Areas

Animation, Visual effects, Gaming and Comics

Medical Transcription CAD/CAM Services

IT Enabled ServicesIT Enabled Services

IT HardwareIT Hardware

IT SoftwareIT Software

Electronics and SemiconductorsElectronics and Semiconductors

IT/ITeS Industry – Focus Area

Data Mining, Data Warehousing

Legal Database processing

Information Services

IT Security and IT Risk Management services

Packaged software support services

Digital content development

Maharashtra is also promoting‘Green’ IT and electronichardware, as well as e-wasterecycling with several keyinitiatives in the State. The Stateoffers various incentives andbenefits for the key focus areas.

IT EcosystemIT Ecosystem

MAHARASHTRA – KEY PLAYERS

Maharashtra –The PowerhouseMaharashtra has a strong presencewith almost all the major ITplayers in the State.

Leading IT players in Maharashtra

Success story - Infosys Hinjewadi IT Park Pune

Infosys Campus Pune

Infosys was the first occupant in Hinjewadi IT park and has the second largest facility worldwide

Chairman and Chief Mentor, Mr. N.R. Narayan Murthy

“Pune has a credible work culture and offers some of India’s best high-

calibre technical manpower, which is vital for the knowledge-based

industry.

Even MIDC is extremely proactive helpful and customer friendly. The

infrastructure developed by it in the IT Parks are truly world class.”

KEY CONTACTS

Connecting further

Principal Secretary IndustriesRoom No. 114, 1st floor,Mantralaya Annex, MumbaiMaharashtra - 400032

Directorate of IndustriesNew Administrative Building, 2nd floor Opp. Mantralaya, Mumbai - 400 032

Maharashtra Industrial Development Corporation (MIDC)Head officeMaharashtra IndustrialDevelopment CorporationUdyog Sarathi,Mahakali Caves Road,Andheri(E), Mumbai-400 093

Principal officeMaharashtra IndustrialDevelopment Corporation4(A), 12th floor, World Trade CentreComplex, 1 Cuffe Parade, Colaba, Mumbai -400005