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ByFeroz khan

INTERNATIONAL MARKET ANALYSIS OF SEEMANDHRA

UPCOMING MAJOR INDUSTRIES IN SEEMANDHRA

Visakhapatnam- fishers hubKakinada- petro chemical & food sectorsChittoor- agro based food processing hubsOngole- engineering hubVijayawada- transport hubAnantapur-hardware electronics hub.

UPCOMING HUBS

PharmaceuticalsBiotechnologyAgro basedChemicalsLeatherTextilesPrecision components ( ratchet buck lets, spring hook)Aero-space enggElectronics and semi-conductorsAutomobile & auto- components

FOCUS ON DEVELOPMENT OF KEY SECTORS IN SEEMANDHRA

Petroleum & Petrochemical Sectors = 21,60,000 MillionChemical, Parma& Fertilizer Sectors = 5,20,000 Million

Ancillary Industries = 2,00,000 Million

Housing & Allied Infrastructure = 3,50,000 Million

External Infrastructure = 2,00,000 Million

Employment Potential = 1.2 Million

MAJOR INVESTORS

INVESTMENTS IN SEEMANDHRA IN 5 TO 7 YEARS

Visakhapatnam to Chennai is likely to attract an investment of Rs 1 lakh crore in 10 to 15 years.

Investments in manufacturing sector have been drifting southwards , four districts-Nellore, Chittoor, Anantapur and Kadapa .

Chittors’s pileru- major contributor to south Andhra’s new found success as the state new manufacturing hub.

Amara raja group is concentrating and developing an industrial complex in next 18 month’s with 1000 cr. ( CHITTOOR)

First plant opertional by sep.2014.

A petroleum refinery and a petro- chemical complex in seemandhra will be established.

district wise investment opportunites

INVESTMENTS

•six major investment proposals with a total investment of Rs 6,500 crore. multinational companies such as PepsiCo, Cadbury, Colgate, Johnson & Johnson, Gerdau Steels and ITC (Expansion). 36 projects under initial stages with an investment of Rs 79,601 cr. These proposals include proctor & gamble , hosipra , mrf ,usgypsum , west pharamaceuticals packing , century ply , green ply.•manufacturing zones in Chittoor and Prakasam district could attract Rs 31,000 crore and Rs 43,000 crore respectively.•Air Costa plans to invest Rs 618 crore in 2 years . • china is ready to invest about $ 160 billion in different sectors – food processing, small scale industries, infrastructure.•Gems & Jewallary Park is proposed Special Economic Zone with 100% Export oriented Jewellary manufacturing and diamond processing – kadapa .•Agri Export Zone: There is proposal for setting up of Agro Export Zone in Cuddapah district to promote exports in Mango, Banana and K. P. Onions by improving the quality and yield.•Measures from govt side in developing agriculture, irrigation, drinking water supply, education and health.

company Location investment product remarks

Isuzu motors

chittoor 3000 crore trucks& sports utlity vechiles

Green field plant

Berger paints

ananthapur 550 crore paints Green field plant

Nagarjuna fertilizers & chemicals

Kakinada- E.G

5000 crore Brown field urea

expanding

VBC fertilizers & chemicals

Krishna dt 7578 crore Urea & power plant

Green field plant

MANUFACTURING INDUSTRIES

company Location investment product

Sentini infra West Godavari 600 crore Float glass & glass containers

Sanvira industries ltd

Visakhapatnam 360 crore A green coke com calcinations

UPI polymers Nellore 165 crore Polyethylene& corrugated pipes

Idupulapadu cotton mills

Guntur 108 crore Ginning & spinning and cotton seed oil refinery

Pioneer alloy casting

Renigunta - tirupathi

4000 million Alloy casting

projects location investment Exported to countries

Cashew nut shell liquid

Eluru 3 lakhs Japan,korea,u.s.a,u.k,

Lime processing Eluru 171.22 lakhs Middle east, far east countries

Mango processing & canning unit

Eluru 1.61 crore Export potential

Peanut butter Eluru 794.66 lakhs u.s.a, u.k,holland, australia, new zealand, south africa, south east asian & gulf countires

GOVERNMENT PROJECTS

company location investment product

Sanghi Cements Gurajala , Guntur 80000 lakhs cement

Parasakti Cement Rentachintala, Guntur

6660 lakhs cement

DPM Textiles Edlapadu,Guntur 5000 lakhs Cotton spinning

Vasantha spinners Yedlapadu, Guntur 4508 lakhs Cotton yarn

CCL Products Duggirala, Guntur 4300 lakhs Instant coffee

Siva Swathi Textiles

Nadendla, Guntur 4166 lakhs Cotton yarn

Zuari Cement Yerraguntla, kadapa

415 cr cement

Gas Transportation & Infrastructure Company Ltd

kadapa 156 cr pipeline

Cuddapah & Chittoor Uranium Mining & Beneficiation Plant

Pulivendula , kadapa

8000 cr uranium

UPCOMING PROJECTS

Lanco Kondapalli Power Pvt. Ltd(exp)

Ibrahimpatnam, Krishna district

250000 lakhs Power generation

Reliance Industries Krishna Dist 36600 lakhs Exploratory Drilling of wells in offshore

Sentini Ceramica Mudinepalle, krishna Dist

6200 lakhs Ceramic Tiles

G.V.K.Novopan Industries Ltd

Kondapally, krishna 3265 lakhs Particle Boards, Plain Particle Boards.

Shriram Energy Systems

Ajitsingh Nagar, vijayawada

2805 lakhs Power generation

GAIL (India) Ltd G.Konduru , Krishna District

2524 lakhs Transportation of LPG

Bharath Alloys & Energy Ltd

Dinnedevarapadu, kurnool

1936 lakhs Ferro silicon, Silicon Magnesium

Sree Rayalaseema Industries Ltd

Kallur, Kurnool 1773 lakhs Sponge Iron

Chemplast Sanmar Ltd

Krishnapatnam, nellore

41260 lakhs Polyvinyl Chloride

Srivari Shakthi Paper P Ltd

Pellakur, nellore 715 lakhs Kraft Paper

Balaji Energy P Ltd Ananthasagaram, nellore

4486 lakhs Electric Power Generation

Sri Marine Exports (P) Ltd

Narayareddypet,nellore

610 lakhs Marine products

Seenaiah and Company

Podalkur , nellore 2368 lakhs Power generation

Tirumala Milk Products

Chillakur, nellore 650 lakhs Pasteurised Milk, Milk powder

NELCAST Ltd Gudur, nellore 500 lakhs Iron castings

K.C.P.Sugar and Industries

Tada, nellore 542 lakhs Neem Extract

Southern Rocks and Minerals

Ongole, Prakasam 253 lakhs Granite Slabs, Monuments Articles & Tiles

V.S.R.S.Chemicals (P) Ltd

Vetapalem,Prakasam

35325 lakhs Titanium Dioxide

East India Brins Ltd Ongole, Prakasam 570 lakhs Refined Iodized salt

A.K.C. Steel Industries Pydibhima varam , Srikakulam

3000 lakhs Rolled Products, Bars & Rods

Nagarjuna Agri chem Echerla, srikakulam 2200 lakhs Isoxaben, pritilachlor, Mychloburanyl

GMR Technologies & Industries

Amadalavalasa, Srikakulam

1500 lakhs Rectified Spirit, (2) Ethanol

KVR Industries Ltd Amadalavalasa, Srikakulam

1200 lakhs Manufacture of writing, Printing & News paper

Rashtriya Ispat Nigam Ltd (exp)

Gajuwaka, Visakhapatnam

650000 lakhs Pig Iron, Saleable Steel Coal Chemicals

South Asia LPG Company Ltd

Lova Garden, Visakhapatnam

33300 lakhs LPG Storage

Kutch Alumina Power and Coke Ltd

Rambilli, Visakhapatnam

6450 lakhs Aluminium

Hy-Grade Pellets Ltd VPT Area, Visakhapatnam

5957 lakhs Power generation

Coromandel Fertilisers Ltd (exp)

Sriharipuram,vskp 6170 lakhs Atmospheric ,Ammonia tank, Sulphuric acid,Bentornite sulphur

Gem Granites (P) Ltd

Gajuwaka, Vskp 2223 lakhs Granite Tiles/ Slabes

Radice Ispat India Ltd

Parawada,vskp 1965 lakhs M.S Ingots, Rerolled products

Visualsoft Technologies Ltd

Parawada,vskp 1869 lakhs Software development

Godrej Agro Vet Ltd Dwarakatirumala, West Godavari

1104 lakhs RBD Palmolein, Red Palmolein, Soap Stock, Zero Transhortening

Sai Renewable Power (P) Ltd

Kamavarapukota, W.G 1100 lakhs Power Generation

The Andhra Sugars Ltd

Gopalapuram, W.G 4945 lakhs Liquid Hydrogen

Akula Boards Ltd Tanuku,W.G 1395 lakhs Mfg. of paper

REP Corporation Pvt.Ltd

Kovvuru, W.G 10488 lakhs Hollow Glass ware

The Gowthami Solvent Oils (P) Ltd

Tanuku, W.G 2629 lakhs Cotton Yarn

Delta Paper Mills Ltd Palakoderu, W.G 1700 lakhs Electric Power Generation

Whitefield Paper Mills Ltd

Tallapudi, W.G 100000 lakhs Writing & Printing paper

The Andhra Sugars Ltd.

Kovvur, W.G 2500 lakhs Kohlye ,Chlorine,HCL (100%

company location Project type investment

Farmgate Agro Milch Pvt Ltd

Chittoor Manufacturing Of Skimmed Milk Powder

Sri Ravichandra Textiles Pvt Ltd

Guntur Manufacturing Of Cotton Yarn Open End

Samkrg Pistons & Rings Ltd

Srikakulam Manufacturing Of Piston Rings

Sriven Spincot Pvt Ltd

Guntur Manufacturing Of Cotton Spinning

Sri Dhanalakshmi Cotton & Rice Mills Pvt Ltd

Guntur Manufacturing Of Spinning Of Staple Fibers In Mills

Mithra Kyokuto S.P.V. Co Pvt Ltd

Krishna Motor Vehicles For The Transport Of Goods & Special Purpose Heavy Motor Vehicles

company location Project type investment

Sri Akkamamba Textiles Ltd

Tanuku, W.G spinning 2000 lakhs

Himadri Chemicals & Industries Ltd

Visakhapatnam Manufacturing Of Coal Tar Pitch

Stem Cor Steels Pvt Ltd

Anantapur Manufacturing Of Pelltiztion

 Kalyani Gerdau Steels Limited

Anantapur Expansion of Alloy Steel Plant

250 cr

Jeypore Sugar Company Limited

West Godavari Expansion from initial 0.5 MW to 8.5 MW

Knovus Steels & Infrastructure

Anantapur Integrated steel plant 300 cr

Biop Steel & Power Anantapur Ferro alloy manufacturing unit

60 cr

company location Project type investment

Veekay Smelters Private Limited

Vommang-East Godavari

 low carbon ferro alloys

10 crore

Lalitanjali Group visakhapatnam industrial park-7-8 lakh tonnes, captive power of 25 MW.

650 crore

Nittan India Tech Private Limited

Chittoor Valve Manufacturing unit

Aisan Auto Parts India Private Limited

Tada- Chittoor Motor vehicle parts manufacturing unit

 ACC Ltd Cuddapah Integrated Cement Plant

Bharathi Cement Corporation

Guntur Cement manufacturing unit

Vizag Foods visakhapatnam Fresh and frozen buffalo meat projecting unit.

company Location Project type Investment

Fortune Park Hotels Chittoor Fortune Select Grand Ridge

Icomm Chittoor power 547 crore

Hira Electro Smelters-Hira Group

Vizianagaram captive power project

Krishak Bharat Cooperative Ltd (Kribco)

Nellore fertiliser complex 1800 crore

Southern online bio Visakhapatnam Bio- diesel

Nagarjuna Agrichem Limited

Visakhapatnam Fertilizers

Anjaney alloy ltd Visakhapatnam alloys 2232 million

company Location Project type Investment

Elbit india agri ltd chattier Dairy farm 600 crore

Elbit india agri ltd kadapa Dairy farm

Apex encon projects pvt ltd

Visakhapatnam Cold storage & food processing

200 million

Veda bio fuel pvt ltd

vizinagaram Power plant 1201 Million

Makhteshim agan kadapa Pesticides unit 4500 million

Bhartiya leather unit

Nellore Training labour 900 million

Indian farmer & fertilizer company

Nellore- SEZ Food processing 10000 million

UPCOMING INDUSTRIES DISTRICT WISE

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PHARMA BUSINESS POTENTIAL

Cost efficiency • Low cost of production and R&D boosts efficiency of Indian pharma companies • India’s cost of production is approximately 60 per cent lower than that of the US and almost half of that of Europe • Due to lower cost of treatment, India is emerging as a leading destination for medical tourism

Economic drivers • Economic prosperity to improve drug affordability • Increasing penetration of health insurance

Diversified portfolio • Accounts for over 10 per cent of global pharmaceutical production • Over 60,000 generic brands across 60 therapeutic categories • Manufactures more than 500 different APIs

Policy support • Government unveiled ‘Pharma Vision 2020’ aimed at making India a global leader in end-to-end drug manufacturing • Reduced approval time for new facilities to boost investments

Advantage India

Market size

2012USD 18 BILLIO

N

Market size 2020

USD 45BILLIO

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PHARMACEUTICALS -2014

One industry segment that feels it to gain from the split is the bulk drug makersThe cities and districts that could stand to gain from the split under seemandhra – Ongole, Nellore, Krishna & VisakhapatnamThe areas near port like kakinada & krishnapatnam will now be looked upon as potential hubs for bulk drug markets.India pharma exports in 2012-13 is U.S $ 14.7 billion, growth rate of 11 %, by 2016 exports would increase to U.S $ 25 billion.12 new projects with an aggregate investment of 15.5 billion .

PHARMA BUSINESS POTENTIAL

Hospira is setting up its largest manufacturing unit in the world near Visakhapatnam.Govt designed exclusive policy for development of life sciences sector.The policy aims at $13.5 billion market by 2019 with emphasis on medical devices, bio services, pharmaceuticals & nutracenticals.The augmenting exports to Rs 60,000 crore by 2019.In 5 years initiatives have been proposed in the policy including promotion of infrastructure under PPP mode, setting up the MEDICAL PARK.

PHARMA BUSINESS POTENTIAL

Company Location investment Project type

Sudheer Bio Products Pvt Ltd

Krishna 70 crore Extra Neutral Alcohol

Glochem Industries ltd

Parawada,vskp 941 lakhs Bulk Drugs

Sentini Bioproducts Bhimadole, W.G 10750 lakhs Extra Nutral Alcohol, Potable Alcohol

Vishnu chemicals Pvt. Ltd

Parawada,vskp 5000 lakhs Chemicals & Drugs

Aurobindo Pharma Ranastalam, Srikakulam

3895 lakhs Bulk drugs

Dr.Reddy's Laboratories Ltd(exp)

Ranastalam,Srikakulam

5000 lakhs Bulk Drugs

GVK bio Visakhapatnam 100 crore Active pharmaceuticals ingredients

Company Location Project type Investment

CSK pharama labs ltd

Krishna district Bulk drugs 42 million

Drugs & pharmaceutical manufacturing

Visakhapatnam- SEZ Bulk drugs 100 million

Vasudha pharma chemical ltd

Parawada - VSKP Piperidin-4-one manufacturing unit

Shasun pharmaceuticals & sequent science ltd

Visakhapatnam Veterinary products 129 crore

Laurus labs ( EXP) Visakhapatnam Active pharmaceuticals ingredients

2 billion

Bhagiradha Chemicals

Ongole, Prakasam 921 lakhs Chlorpyriphos, Triclopyr

HINTERLAND CONNECTIVITY

Fresh and focus on building – Buckingham canalDugarajapatnam and KrishnapatnamNW-4 Andhra Pradesh to Tamilnadu .Bengal tiger line starts new import connection from Colombo to krishnapatnam port. Which enables importers in seemandhra hinterland to bring in their cargoes coming from Europe, U.S.A, Middle East, West Africa, East Africa.

HINTERLAND CONNECTIVITY

• NH-4 -> Godavari –Krishna rivers and canals between Kakinada and puducherry.

• Total length= 1027 km• Year of starting = 2008• Period of completion= 7

years• Potential cargo= 11 million

tonne per annum.• Phase 1 = 609 crore ,

Kakinada to eluru canals, which has maximum cargo potential.

• Phase 2 = 906 crore, development of north and south Buckingham canal

NH-4 WATER WAYS

Kakinada1. RAIL – railway line of 4.5 from railway station to port and well connected to major cities

like chennai and banglore.2. ROAD- Kakinada is connected by road to the rest of the state and India. NH-214 from

Kathipudi to Ongole (both on NH-5) passes through the city.3. AIR- nearest airport is about 65 kilometres (40 mi) away, at Rajahmundry. Another

airport, 145 kilometres (90 mi) away at Visakhapatnam, has service on a number of airlines to major Indian cities.Gangavaram

1) RAIL – nearest major rail link to the port is the Visakhapatnam – Vijayawada Broad Gauge railway line, which is about 10 km from the port location.

2) ROAD - 4 lane expressway of 3.8kms connecting the port with the NH-5 (Chennai - Kolkata), also being connected to main broad gauge national network of "Chennai-Visakhapatnam-Howrah" rail corridor by means of a green field alignment of 2.5 kms.

3) AIR- Visakhapatnam airport is 20 km distance away.

HINTERLAND CONNECTIVITY WITH PORTS

Visakhapatnam1. RAIL - Railway network at Port of Visakhapatnam is the largest amongst Indian

Ports with over 200km rail length, over 30 Sidings and ~60% rail coefficient. 2. ROAD - About 23.5 Kms., of road network is available within the operational

area connecting the entire stacking areas for free movement of vehicles.3. AIR - The Airport is about 9 Kms from port area . The airport operates from 8

am to 8 pm on all days.Krishnapatnam

1. RAIL - A dedicated 19 km railway line connecting the port to the Chennai-Kolkata main line.

2. ROAD - Dedicated 26 km four-lane road connecting the port to National Highway No. 5 (Chennai-Kolkata Highway) will be upgraded to six-lane road in the future.

3. AIR - 180 km from the International Airport at Chennai, 120 km from domestic airport at Tirupati.

HINTERLAND CONNECTIVITY WITH PORTS

INFRASTRUCTURE DEVELOPMENT BETWEEN COASTAL ANDHRA AND TAMILNADU

Andhra Pradesh water supply improvement project -> invest 4444 crore, -> covers Guntur and Prakasam under right canal.Land acquisition of ganavaram airport.Container berth terminal expansion project visakha container terminal pvt ltd -> 820 crore -> 1.05 million container boxes to handle -> 3 to 4 years to complete.Concor's logistics park inaugurated on may 5th 2014 -> multiple railway sliding in the park and to facilities handling refer containers by 2016 march.Infra structure corporation of A.P ltd -> to area between Visakhapatnam to Kakinada , supported by IFC.NH-5 , a part of golden quadrilateral connecting Delhi-> Mumbai-> Chennai->Kolkata passes through seemandhra.

INFRASTRUCTURE DEVELOPMENT BETWEEN COASTAL ANDHRA AND TAMILNADU

APIIC plans to invest Rs 1500-2000 million to develop roads , electricity and other infrastructure.Visakhapatnam to Chennai industrial corridor along the lines of Delhi - Mumbai, I-C.Expanding Visakhapatnam, Vijayawada, and Tirupathi airports.New railway zone in seemandhra.Green field crude oil refinery and petro chemical complex in seemandhra. (IOCL &HPCL)Krishnapatnam port -> new SEZ in Nellore acquired 2400 acres & plans to acquire 12000 acres -> 60000 million.

INFRASTRUCTURE DEVELOPMENT BETWEEN COASTAL ANDHRA AND TAMILNADU

products Location districts

Mango jelly Sarpavaram, Kakinada East Godavari district

Mango jelly Bhimli Vijayanagaram

Cashew processing Palasa Srikakulam district

Cashew processing Vetapalem Prakasam district

Marine foods Visakhapatnam Visakhapatnam district

Oil mills Cuddapah, Prodattur, Nandyal, Adone

Lace Products manufacturing

Narsapuram West godavri

INDUSTRIAL CLUSTERS

INDUSTRIAL CLUSTERS

Graphite crucibles Rajamundry, Samalkota, East Godavari dt

Roofing tiles Jaggampeta EG district

Roofing tiles Kothavalsasa Vizianagaram dt,,

Roofing tiles Nuzvid Krishna dt

Imitation Jewellery Machilipatnam Krishna district

Burnt lime Piduguralla, Guntur district

Turmeric processing Duggirala Guntur district

Ready made garments Rayadur Anantapur district

Prawn Processing Bhimavaram  West Godavari

Food parks at Krishna, Machilipatnam, RR district,Leather parks: 72 mini parksExim park at VisakhapatnamAgri export zonesGems and Jewellery park etcMarine Bio tech parkSpecial economic zonePharma city at Visakhapatnam

PROPOSED PARKS

SEEMANDHRA-> STATE TO WATCH OUT

New state -> New Government -> New capital ( in between Vijayawada to Guntur.Action plan to develop tier 2 & 3 cities in seemandhra region as region as specialized mini capital.20 % of head offices to shift in seemandhra as 50 % industries in Telegana are owned by industrialist from Seemandhra.

KEEP THANK YOU SLIDE