Saurashtra An Investment Paradise

Opportunities for Micro Small and

Medium Enterprises (MSMEs)

Why Invest in

Saurashtra?

West peninsular region

with longest coast-line

having 7 ports.

Abundant Mineral

Resource

The State achieved

11.1% GSDP Growth at

Current Price

Saurashtra Region

Saurashtra region is the western peninsular of

Gujarat, consisting of 11 districts namely Amreli,

Bhavnagar, Botad, Devbhumi-Dwarka, Gir-Somnath,

Jamnagar, Junadagh, Morbi, Porbandar, Rajkot and

Surendranagar. The region forms a rocky tableland

fringed by coastal plains with a central part made up

of an undulating plain broken by hills and

considerable dissected by various rivers that flow in

all direction. It has abundant natural resources,

varied topography, soil, climate and hydrology.

Saurashtra region is surrounded by Arabian Sea on

the south and south-west; Gulf of Kutch on north-

west, Gulf of Khambhat and North Gujarat on the

east. The geographical proximity of the region with

the middle-east via sea routes gives the region its

locational advantage. The 11 districts of the region,

spreads across 64,383 sq. km of area occupying

33% of the total landmass of the state. The region

has 25.5% (15.4 million) of state’s population with

43% urban population.1

The state of Gujarat registered a GSDP growth of

11.1% in 2015-16 (at current price) with the

primary, secondary and tertiary sector’s share of

19.1%, 42.2% and 38.7% respectively. The per

capita income at current price has shown a growth

of 7.9% in 2015-16.2

The significant contributor to the economy in the

region are ship breaking industries at Bhavnagar,

fabricated metal products and equipment including

brass parts in Alang and Jamnagar, limestone,

bauxite, chalk and fishery resources in Porbandar,

the oil mills, limestone, chalk power, mining and salt

manufacturing in Junagadh. Rajkot is known for its

oil-engine, casting, forging, hardware, stainless steel

Kitchen-ware, silver ornaments, bearing, chemical

and Computer Numerical Control (CNC) machineries.

The ceramic cluster and the Ajanta clock

manufacturer in Morbi are also prominent

Districts in Saurashtra Region

Gujarat State

1 Statistical Abstract 2013 Gujarat (Table No. 1.4 Pager no. 6) 2 Socio Economic Review, Gujarat State 2016-17 (pg. 8 and 9) 1

Available Infrastructure Road connectivity: Currently Gujarat has 79,894 km

road length. Out of which 4,023 km is National

Highway and 18017 km is State Highway.3 Rest are

district roads and other roads.

Saurashtra region has a well-connected road network.

Rajkot as a center of the region is connected with all

the major locations within and outside the state via

National Highway 8A, State Highways and District

roads.

Rail Connectivity: All the districts of the region are

connected with single diesel Broad Gauge line except

Amreli. Rail linkage provide connectivity to ports and

port led industries. Ports in Saurashtra like Pipavav,

Navalakhi, Mundra, Bhavnagar and Okha are

connected with broad-gauge rail network.

Distance from Rajkot Station to other major Stations

Places in (km) Places In (km)

Ahmedabad 247 Mumbai 738

Surat 476 New Delhi 1339

Vadodra 347 Hyderabad 1478

Jamnagar 85 Chennai 2138

Okha 253 Kolkata 2334

Rail connectivity to the

National Rail network

Well-connected Road

Networks.

Well Developed Port

Industry

Highest number of Airports

in a region

What are the

enabling factors

for Industry?

Distance from Rajkot to major cities (Road)

Location (km) Location (km)

Jamnagar 91 Delhi 1500

Porbandar 108 Mumbai 750

Somnath 199 Hyderabad 1254

Bhavnagar 187 Chennai 1801

Amreli 109 Kandla Port 206

Surat 446 Mundra Port 251

Badodra 290 Ahmedabad 215

The region has seven ports.

► Bhavnagar Port ► Jafrabad Port ► Veraval Port ► Porbandar Port ► Okha Port ► Bedi Port ► Navlakhi Port

8 domestic airports provides swift air connectivity to Ahmedabad, Mumbai and other parts of the

country.

► Rajkot ► Jamnagar ► Porbandar ► Amreli ► Bhavnagar ► Mithapur ► Keshod

► Porbandar

Road, Port and Airport in Saurashtra 3 Socio Economic Review, Gujarat State 2016-17 (pg. 42) 2

Basic Infrastructure and Amenities Power Supply: The main source of power supply is Gujarat

Energy Transmission Corporation Ltd. The power

distribution in Saurashtra region is under the Paschim

Gujarat Vij Company Ltd. Currently there are three

Substations of 400 KV, 20 Substations of 220 KV, 19

Substations of 132 KV and 401 Substations of 66 KV

makes a total of 446 Substations in the region.4

Water: The water supply for industrial purpose can be

obtained from – Gujarat Water Supply & Sewerage Board

(GWSSB), Dams and Surface Water. The Sardar Sarovar

project enables the Narmada water to reach through

Saurashtra main canal upto Maliya in Morbi. The water

reaches from Maliya to Hadala and further to Rajkot

through canal and pipeline.

Gas: In Rajkot there are four gas pipeline sections of which

Ratanpur – Morbi Spurline is the longest segment and is

35.07 km long. A proposed gas grid in the region will cover

three section i.e. Morbi – Mundra, Jamnagar – Okha and

Gana – Rajkot.

Common Effluent Treatment Plant: As on March 2016

there are 41 Common Effluent Treatment Plants (CETP) in

the state, out of which 33 are operational and seven are

either proposed or are in construction phase. Six are

operational in Saurashtra region with a total capacity of

72.935 MLD involving 1739 members. Two more CETPs

are proposed.7

Banking: The lead bank of Saurashtra Region is State Bank

of India.

Incubation Centre: Saurashtra region currently has one

training cum incubation canter of NSIC at Aji Industrial

Estate and one nodal institute at R.K. University, Rajkot.

Investors of Saurashtra region can access to the other 30

identified Nodal Institutes of Gujarat.

Industrial Training: For skill development and industrial

training the region has 17 Skill Up-gradation Centres under

NSDC. 53 skill upgradation centres constructed in various

GIDC Estates.

There are 60 GIDC Industrial

Estates, two Special Economic

Zones at Jamnagar and Amreli

and four Special Investment

Regions at Okha, Navlakhi,

Pipavav and Simarn 5

207 ITIs in Saurashtra region,

including Government, Grant-in-

aid and Self-financed with a total

of 46,852 intake capacity 6

Power sufficient State

with highest per capita

consumption in India

Well established Gas

Pipeline for industrial

use

Banking facility at

Doorstop

4 http://www.pgvcl.com/about%20us/st_interface.php (accessed on 6.7.17) 5 Gujarat Industrial Development Corporation 6 Socio Economic Review, Gujarat State, 2016-17 Pg. S125 7 http://gpcb.gov.in/status-of-cepts-in-gujarat.htm (Accessed on 16.6.17)

3

What are the

focused Sectors

in Saurashtra?

Major Industry Sectors in the region

This region is known for its industrial potential in the

focused sectors of Engineering, Ceramic, Port Industry,

Food Processing, Kitchen Appliances, Metal Fabrication,

Cement Industry, Rubber Plastic & Petro based Industry,

Agriculture & Agro Industry, Chemical Industry, Mining &

Minerals, Gems & Jewellery, Textile, Tourism, Timber &

Wood, Handicrafts, Agro products and Marine Chemicals.

The Saurashtra Kutch Stock Exchange Ltd. located in

Rajkot is linked with the stock exchanges of Mumbai

Kolkata and New Delhi

Engineering Industry

The state’s engineering sectors contribute around 18%

to state’s total industrial production and around 9% to

the national engineering output.* Rajkot is a hub of

engineering industry. There are a good number of brass

parts, machine tools and ball bearings industries in

Jamnagar. The brass parts cluster at Jamnagar has

over 5,000 small units and meets almost 70% of the

entire requirement for brass parts in India. Bhavnagar

and Amreli are dominated by fabricated metal products,

foundry and forging, machine tools and steel re-rolled

products

Mineral based Industry

The main mineral based industries in Saurashtra region

are ceramic industry in Morbi, petroleum and brass

based industry in Jamnagar and Soda ash and salt-

based industries in Amreli and Bhavnagar. Morbi is

known for its clock manufacturing units, mosaic/glaze

tiles and roof tiles manufacturing. The Ceramic Industry

Cluster is one of the largest export cluster in the region

Saurashtra Kutch Stock

Exchange Ltd. linked to

other national stock

exchanges

Best in class engineering

Industry

Mineral based Industry

Shipping Industry Gujarat has best port infrastructure

and well developed shipping industry

that the Indian sub-continent has to

offer, the state alone lifts 41% in the

total port cargo in India. There are

ship recycling and marine shipbuilding

parks available in Bhavnagar, other

shipbuilding industry are located in

Pipavav and Jafrabad. There is

bunkering facility at Okha. Alang in

Bhavnagar district is the world’s

largest ship recycling yard having a

ship breaking capacity of about 4

million MT per annum. Jamnagar has

the only all-weather deep sea port in

India.

Large Industry Ajanta Electronics Pvt Ltd.

Atul Auto Ltd.

DCW Ltd.

Chhatariya Foods Pvt. Ltd.

Digjam

Carborundum Universal Ltd.

Nirma Ltd.

Excel Industries Ltd.

Wipro limited

NOVA Technocast Pvt. Ltd.

Reliance industries Ltd.

Inidan Rayon Ltd.

Tata Chemicals Ltd.

Gujarat State Fertilizers Co. Ltd.

Saurashtra Cement Ltd. Hathi Cement

Agrocel Industries Ltd.

* https://vibrantgujarat.com/writereaddata/images/pdf/Manufacturing-Sector-Profile.pdf (Accessed on

16.6.17) 4

What’s in

Saurashtra?

70% of India’s brass

products manufactured

Tourism, Bunkering

Facility at Okha

Abundant limestone,

bauxite, chalk and

fishery resources

Oil mills, limestone, mining,

salt manufacturing and

fishing Industry

Largest Ceramic Industry

Cluster in India

895.4 Hectares

of Industrial Park

World’s largest

ship-break yard

World’s No. One

City for Oil Engine

Soda Ash and

Salt Industry

Tourism and

Fishing Industry

The region is a gateway to the trade and commerce to the Middle-East, Europe and America.

There 7 Ports with a total cargo handling capacity of 36.72 MMT per year.

Source: GMB 2015-16

Name of Ports MMT

Navlakhi Port, Morbi 8.05

Bedi Port, Jamnagar 6.11

Okha Port, Dev B Dwarka 4.96

Porbandar Port, Porbandar 7.56

Veraval Port, Gir-Somnath. 2.17

Jafrabad Port, Amreli 6.04

Bhavnagar Port, Bhavnagar 1.83

Cargo Handling Capacity in Ports of Saurashtra

Available Port

Infrastructure for

cargo handling

5

Rajkot*

A Hub of

Engineering

& Ceramic Industry

Rajkot

Rajkot is known for its casting and forging industries. Over the last few years, it has been emerging as a potential player in the complex supply chains of many global engineering companies, producing Electric Motors, Automobiles, Machine tools, Bearings, etc. Engineering

Non-Metallic Mineral

Products clench by 61%

of the MSME in Rajkot

A Nature’s Gift of red clay and

human enterprise

made Morbi the

largest ceramic

exporter of the

state

Amrel…Bhavnagar, 13%

Somnath, 0%

Jamnagar, 8%

Junagadh, 4%

Morbi, 3%

Porbandar, 1%

Rajkot, 62%

Surendranagar, 6%

Amreli, 3%

Bhavnagar, 18%

Botad, 0%

Devbhumi Dwarka, 0%

Jamnagar, 13%

Junagadh, 6%

Morbi, 1%

Porbandar, 1%

Rajkot, 51%

Surendranagar, 7%

District-wise comparison on Employment & Investment

District-wise employment 2006 – 2015 District-wise Investment 2006 – 2015

* Rajkot including Morbi

Morbi

The main products of the

ceramic industry at Morbi are

wall tiles, floor tiles, vitrified

tiles, and sanitary ware. The

ceramic cluster in Morbi has a

yearly turnover of Rs. 5500

Crores. It is comprised of 150

Micro, 297 Small and 150

Medium Industries generating

around 20000 direct

employment and 20000 indirect

employment.8

To facilitate the growth, Rajkot has 12 and Morbi has 4 GIDC Industrial Estates and

number of private Industrial Estates.

8 District Industrial Potential Survey Report Rajkot 2016-17

Source: Industries Commissionerate

6

Bhavnagar

World’s Largest

Ship Breaking

Industry

Bhavnagar Bhavnagar is famously known for it’s ship breaking

industry. Major industries in the sector include Rolling

Mills and Induction Furnace. 121 such Re-Rolling Mills

registered in the district with an installed capacity of 8.19

Lacs Metric tons per month. The total investment in these

industries is around Rs. 124 crores providing a direct

employment of 12,000 workers. Industrial oxygen is the

next activity related to Ship Breaking industry. Around

137 units registered with an investment of Rs 150 crores

which generates around 5,000 direct employments.9

Apart from the ship breaking industry, the next largest

small scale and cottage industry is diamond cutting and

polishing which gives employment to around 74,000

people.9

Cement, gypsum and food processing industries are the

emerging markets and has come up as the biggest

industries in terms of investment. The cement and

gypsum sector has alone attracted investments of around

Rs. 2,600 crores in the last decade, while the food

processing industry has also grown by a whopping 250

times attracting an investment worth Rs. 123.5 crores.9

Jamnagar Jamnagar district caters to over 70% of the country’s

requirement for brass parts supply. Around INR 300

crore (USD 71 million) worth of brass parts are produced

by industries in Jamnagar, of which 90% is marketed

within the country and 10% is exported. Substantial

reserves of bauxite are found in the district. Hence,

mineral based calcite, bauxite, amery and abrasives

industries are well developed in the 350 km coastline of

Jamnagar. There are over 17 salt work units in the

district exporting salt to countries like China, Indonesia,

Vietnam, Bangladesh, Japan, and Nepal.9

World’s largest ship

breaking yard.

2600 Crore INR

investment in Cement

and Gypsum Industry7

70% of India’s brass

products are

manufactured in

Jamnagar

9 District Industrial Potential Survey Report Rajkot 2016-17 7

Policies

Gujarat Government

has 19 policies, that

are directly or

indirectly associated

with MSME.

Industrial Policy

2015, Industrial

Policy (VAT) 2016,

Textile Policy 2012,

Agro Policy 2016,

Solar Power Policy

2015, Electronics &

ITeS Policy 2016,

Manufacturing Policy

2013 and Cottage

Scale and Rural

Industries Policy 2016

are some of the

important policies for

MSME sector.

Industrial Policy

2015-20

Industrial Policy

2016-21 (VAT)

Electronics &

IT/ITeS Policy

2016-21

Electronics &

IT/ITeS Startup

Policy 2016-21

Comprehensive

Agro Business Policy

2016-21

Solar Power

Policy 2015

Cottage and Rural

Industries Policy

2016

Electronics

Policy 2016-21

Tourism Policy

2015-20

eGovernance

Policy 2014

Gujarat Textile

Policy 2012

Gujarat Small

Hydel Policy

2016

Port Policy

1995

Aerospace and

Defence Policy

2016

Waste to Energy

Policy 2016

Wind Power

Policy 2016

Biotechnology

Policy 2016

Manufacturing

Policy 2013

8

Schemes

&

Policies

9

MSME

Facilitation

Desk

MSME Facilitation Desk To cater the need of the hour and to assist the process of setting up a business unit till its commissioning a dedicated team of professionals has been formed at Gandhinagar to put in efforts for providing assistance to the MSME industry of the State. Four regional desks have been placed at district level in Ahmedabad, Surat, Vadodara and Rajkot to provide hand holding assistance at local level in order to achieve a better reach to the MSME industries. All the services offered under the desks are free of cost for anyone, willing to set up business. Services includes Hand Holding Support, Financial Guidance, Setting-up of Enterprise and Knowledge Support.

Vadodara District Industries Centre 1st Floor C – Block, Narmada Bhavan, Jail Road, Vadodara 390001 Phone: 0265 - 2411400 Mail-id: msmedesk-vad@gujarat.gov.in

Gandhinagar Office of the Industries Commissioner Block No. 1, 4th Floor, Udyog Bhavan, Gandhinagar 382 010. Gujarat. INDIA Phone: 079 - 232 – 52630 Email ID: msmedesk-ic@gujarat.gov.in

Ahmedabad District Industries Centre 1st Floor, Bachat Bhavan, Relief Road, Ahmedabad 380001 Phone: 079 - 25503568 Mail-id: msmedesk-ahm@gujarat.gov.in

Surat District Industry Centre 2nd Floor, C block Bahumali Building Nanpura, Surat Phone: 0261 2465928

Mail-id: msmedesk-sur@gujarat.gov.in

► Collaterals / brochures for the current policies & schemes ► Rebates/ subsidies available from central & state government

► Knowledge Repository

► Assistance for setting up MSMEs ► Sector specific knowledge & guidance

► Guidance on government procedures / approvals / clearances

► Investor facilitation / interaction ► Guidance for filling forms, approvals, schemes, policies,

incentives, etc. ► Handling investors’ queries ► Inter-departmental co-ordination

Hand Holding

► Guidance for financial availability ► Assistance for knowledge dissemination workshops / Seminars ► Information related to financial incentives through government

schemes

Financial Guidance

Setting up of Enterprise

Knowledge Support

Rajkot Gujarat State Financial Corporation Race Course Ring Road, Near Life Building, Rajkot- 360001 Phone: 0281-2443664 Mail-id: msmedesk-raj@gujarat.gov.in

10

NATIONAL LEVEL

Bureau Of Indian Standards

bis.org.in

Udhyog Aadhar udyogaadhaar.gov.in

Development Commissioner(MSME)- Ministry of Micro, Small & Medium Enterprises

dcmsme.gov.in

Department of Industrial Policy & Promotion- Ministry of Commerce & Industry

dipp.nic.in

Ministry of Textiles ministryoftextiles.gov.in

E Biz Portal ebiz.gov.in/home

National Small Industries Corporation Ltd (NSIC) nsic.co.in

Small Industries Development Bank of India (SIDBI) sidbi.in

STATE LEVEL

Industries Commissionerate

ic.gujarat.gov.in

Investor Facilitation Portal ifpgujarat.gov.in

Industrial Extension Bureau indextb.com

Gujarat Industrial Development Corporation gidc.gov.in

Gujarat Infrastructure Development Board gidb.org

The Centre for Entrepreneurship Development ced.gujarat.gov.in

Electronics & Quality Development Centre www.eqdc.in

Gujarat State Petroleum Corporation Limited gspcgroup.com

Gujarat Urja Vikas Nigam Limited gseb.org

Gujarat Pollution Control Board gpcb.gov.in

Tourism Corporation of Gujarat Limited gujarattourism.com

Gujarat Maritime Board gmbports.org

Gujarat Agro Industries Corporation Limited gujagro.org

Gujarat State Financial Corporation gsfc.gujarat.gov.in

Commissioner of Geology & Mining geomining.gujarat.gov.in

Gujarat State Handloom & Handicrafts

Development Corporation Ltd

gurjari.co.in

Commissioner, Cottage & Rural Industries cottage.gujarat.gov.in

Gujarat Industrial Investment Corporation

Limited

giic.gujarat.gov.in

Industries & Mines Department imd-gujarat.gov.in

What are the

important

Websites?

Online Application

Online Support &

Assistance

11

Prepared by:

MSME Facilitation Desk

Gandhinagar

07923252630 msmedesk-ic@gujarat.gov.in

Ahmedabad

07925503568

msmedesk-ahm@gujarat.gov.in

Surat

0261 2465928 msmedesk-sur@gujarat.gov.in

Vadodara

02652411400 msmedesk-vad@gujarat.gov.in

Rajkot

02812443664 msmedesk-raj@gujarat.gov.in

For more details and other desk information visit – ic.gujarat.gov.in/msme-facilitation-desk.aspx