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India By State - Gujarat - Business Opportunities


Business Opportunities

 

Key Industries

Agro & Food Processing

This particular sector, including animal husbandry contributes 14.8 percent of Gujarat’s GSDP (2006-07).

The State has a significant share in national production of principal crops and has the highest production of groundnut (3.39 MT), cotton (6.77 MT) and the second highest production of onion (2.13 MT). It has a strong marketing network and has an annual average growth rate of 24.11 per cent (2001-2005). It has nearly 204 market committees, 193 main yards and 207 sub-market yards. The state has significant number of well established food processing units with 3,700 small scale industrial units. There are around 1,875 working factories and 150 large and medium scale units.

Dairy

Gujarat has 13 district milk producers’ unions and a large network of 12,991 milk cooperative societies having 2.5 million members. Its total milk production is around 18.97 million litres per day. National Dairy Development Board (Anand) is involved in promoting, financing and supporting milk distribution organizations in India. Gujarat Cooperative Milk Marketing Federation (GCMMF) a cooperative dairy giant sells Amul and Sagar brands of dairy products through 50,000 unorganised retailers and 3,000 distributors. GCMMF has clocked a turnover of US$ 1.05 billion during fiscal 2006-2007 to become the first billion dollar cooperative in India.

Chemicals & Petrochemicals

Gujarat contributes around a staggering 51 percent to national production of chemicals (2006-07) making the State the highest contributor to total national production of petrochemical products. This sector alone, accounts for 60.3% of the State’s total industrial production.

With over 15,000 registered Small Scale Industrial (SSI) units focusing on production of chemicals, Gujarat is the highest producer of major chemicals, including alkali, organic, inorganic, pesticides, dyes and dyestuff.

As of 2006, there were 3720 factories manufacturing chemical products employing over 0.8 million people. Major companies in Gujarat are Reliance Industries, Nirma, Lanxess ABS Ltd., Gujarat Alkalies and Chemicals Ltd. (GACL), Gujarat State Fertilizer Company (GSFC) etc.

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Textiles & Apparels

It is the highest contributor of man-made fibre (31 per cent) and man-made filament yarn (38 per cent) in the country. It contributes 12 per cent to national textile exports; over 40 per cent of country’s art-silk fabric produced at Surat. Over 35 per cent of fabric comes from organised sector and 25 per cent fabric from the decentralised power loom sector is from Gujarat. Gujarat is Asia’s largest denim producer (Arvind Mills).

It has the highest number of state-owned looms for cotton and man-made fibre (6,888 as on March 31, 2006); and second-highest number of privately owned looms (11,963 as on March 31, 2006) with approximately 3 million spindles in cotton/ man made fibre mills

Engineering & Auto

Gujarat contributes 15 per cent of total industrial production in the State and over 8 per cent to national engineering output. It has an average annual growth rate of 15 per cent and has more than 600 medium and large sector units and over 75,000 small scale units and 30 engineering product clusters.

SSI units are significant contributors to national production of brass parts, foundry, forging and machine tools, oil engines and electric motors, submersible pumps and industrial valves and bearings.

Brass parts cluster at Jamnagar has over 5,000 small units and meets the entire requirement for brass parts in India. General Motors has set up its automotive manufacturing facilities in Gujarat giving boost to ancillary industry.

A key advantage to the economy of Gujarat, within this sector is perhaps, the presence of highly established industry leaders, as demonstrated below:

  • Largest producer of sponge iron - Essar Steel
  • Largest copper rod manufacturing - Hindalco facility
  • Largest manufacturer of material handling equipment - Elecon Engineering
  • Largest producer of earth moving equipment - Gujarat Apollo
  • Largest power transmission capacity plant - Kalpataru Power Transmissions
  • Largest manufacturer of glass shells for TV tubes – Videocon International

Gems & Jewellery

Out of all the diamonds processed within India, Gujarat contributes a staggering 90 percent, which are processed in the 10,000 units located in Surat. 8 out of every 10 diamonds in the world are polished here.

Gujarat is the World’s second largest producer of gold jewellery and contributes the highest share of 85 percent to total national jewellery production. It expertise within this industry has lead to the State being internationally renowned for production of unique hand made silver ornaments (85 percent of total silver jewellery production in India).

The State has the highest labour productivity in the jewellery sector in India. Renowned institutions such as Indian Diamond Institute, Gujarat Hira Bourse and Gems & Jewellery Export Promotion Council cater to the need of skilled manpower.

Oil & Gas

Gujarat has the highest number of oil and gas fields in India and so is the largest producer of crude oil (55.10 per cent) and natural gas (32.3 per cent) in the country.

Oil and gas reserves are located at Ankleshwar, Mehsana, Tapti High, Hazira, Bharuch, Gandhar, Dahej, Jambusar, Palej and Kalol. Isolated gas fields are located around Ahmedabad.

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Pharmaceuticals & Biotechnology

Gujarat accounts for 45 per cent of national pharmaceutical production (2006-2007). It is the first state to manufacture APIs and finished dosage forms. It has 902 allopathic manufacturing units and 2,122 contract manufacturing units. Gujarat accounts for exports worth US$ 1.4 billion (2006-2007). It has the maximum number of clinical research organizations in India. It’s academic and research institutions provide over 4,600 technically-skilled workers per annum. India’s largest biotech park of 700 acres is currently being developed at Savli, Vadodara.

Major foreign direct investment in the state

Company Country of origin Segment Investment (US$ million)
Royal Dutch Shell Netherlands Energy 600
ABB France Petrochemicals 500
E.I. Dupont UK Chemicals NA
General Motors USA Automobile 185
Bayer Germany Chemicals NA
AT&T USA Automotive NA
GE Plastics USA Plastics NA
British Gas UK Power NA
Siemens AG Germany Infrastructure NA

Source: Media reports

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Key Players

ABB

Asea Boveri Brown (ABB) is a global leader in power and automation technology that enables utility and industry customers to improve performance while reducing environmental impact. ABB's state-of-the-art manufacturing facility in Vadodara is a global sourcing base for outdoor and indoor circuit breakers. The ABB Group operates in 100 countries. In India it has a vast installed base, extensive local manufacturing and a countrywide marketing and service presence. ABB posted revenues of US$ 327 million in 2003.

Aditya Birla Group

It is the 11th largest cement producer in the world, seventh-largest, in Asia. It is one of the Fortune 500 companies of AB Group, one of world’s largest aluminium rolling companies. Also, it is one of the biggest producers of primary aluminium in Asia and at the same time the third-largest producer of insulators. It is among the fastest growing copper companies in Asia. It has 10 manufacturing units across Gujarat (highest).

AT&T India

AT&T India, a subsidiary of AT&T, USA, is based in Gujarat since 1984. The company has established a brand name in the telecom services sector. It offers networking and communication equipment to telecom operators. In collaboration with the Aditya V Birla Group, AT&T operates Idea Cellular in Gujarat. AT&T is a three-time winner of the Malcolm Baldrige National Quality Award in the US, and winner of Japan's Deming Prize and Taiwan's National Quality Award.

Adani Group

Established in 1988, it is the largest trading house in India, leading trader in coal, wheat, castor oil, petroleum, Business Process Outsourcing (BPO), power trading, iron-ore and pulses. It has a well developed natural gas distribution network. It has established India’s largest edible oil refinery in the State. It is also involved in development of Mundra Port – second port to be privatised in Gujarat. It has proposed the establishment of multi purpose port at Mundra, in JV with Petro net LNG.

Bayer

Bayer AG, the German chemical giant, is a Fortune 500 company with global sales of US$ 33 billion. Represented by 350 companies across five continents, it has a total workforce of 15,400 people. Its business operations are the responsibility of the subgroups - Bayer HealthCare AG, Bayer Crop Science AG and Bayer Material Science AG. In Gujarat, the company operates through Bayer Crop Science Ltd, Bayer Diagnostics India Ltd and Bilag Industries Private Ltd.

Bosch Rexroth (India) Ltd

Bosch Rexroth (India) Ltd, a subsidiary of Bosch Rexroth AG, Germany, was established in 1975. The company provides comprehensive drive and control solutions in industrial and mobile applications through hydraulics, electric drives and controls, linear drives and guides, pneumatics. The company has close to 300 employees and recorded total sales of US$ 23 million in 2003. Its facility at Ahmedabad manufactures hydraulic valves, pumps, blocks, cylinders and power units. Bosch has sales offices, service centres and training centres in Ahmedabad serving customers in India, Bangladesh, Nepal and Sri Lanka.

British Gas

British Gas is a leading player in the global energy market. In India, the company has a majority shareholding (65 per cent) in Gujarat Gas Company Ltd. The company's principal lines of business are natural gas distribution, transmission systems, compressed natural gas (CNG), gas supplies and natural gas.

E.I. Dupont

Dupont India became a wholly owned subsidiary of E.I. Du Pont de Nemours and Company Inc., USA, in 1994. The company has invested close to US$ 80 million in India and manufactures Tynex toothbrush bristles, Teflon non-stick coating, engineering polymers, crop protection products and pioneer seeds. The company's facility in Savli, Gujarat, manufactures crop protection products and engineering polymers.

Essar Group

It is a diversified business group with enterprise value over US$ 20 billion. Its business portfolio includes steel, energy, power, communication, shipping and logistics and construction. Its business operation locations are Mumbai, Gujarat (Ahmedabad, Hazira, and Vadinar), and Vishakhapatnam. It is the largest producer of sponge iron and also largest exporter of flat steel products (Steel plants in Gujarat – Hazira, Vishakhapatnam). It focuses on global expansion with projects in Canada, USA, Africa, the Middle East, the Caribbean and Southeast Asia.

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GE Plastics India Ltd (GEPIL)

GE Plastics India Ltd is a 50:50 joint venture between Indian Petrochemicals Corporation Ltd (IPCL) and General Electric Plastics BV, Netherlands. The company has a world-class plant for advanced engineering plastics, alloys, blends and compounds at Vadodara in Gujarat. With a present capacity of 25,000 tonnes per annum, it manufactures a wide range of GE's proprietary products. In 1996, GEPIL also became the first global manufacturing site of General Electric Plastics to start manufacturing GELON* (Polyamide-6) compounds.

General Motors India

Founded in 1908, GM is the world’s largest auto maker. In 2006, it sold 9.1 million cars and trucks globally. It is the global industry sales leader for 76 years and has employee strength of 2, 84,000 people around the world. Headquartered in Detroit (USA), GM manufactures its cars and trucks in 33 countries. General Motors India, incorporated in 1994, became a fully owned subsidiary of GM in 1999. It has 45,000 Sq. Mt. Plant in Halol (Panchmahal), Gujarat; it produces Opel Corsa, Corsa Sail, Chevrolet Optra, and Chevrolet Tavera.

Grasim Industries Ltd

Grasim Industries Ltd, incorporated in 1947, originally a textile manufacturer, successfully diversified into Viscose Staple Fibre (VSF) cement, sponge iron and chemicals. The first phase of Grasim's fourth VSF plant was commissioned in Kharach, Gujarat, in 1996. It is now a global leader in VSF, the country's largest merchant producer of sponge iron and the second-largest caustic soda maker in India and poised to be India's largest cement manufacturer.

Gujarat Cooperative Milk Marketing Federation (GCMMF)

Gujarat Cooperative Milk Marketing Federation is a state level apex body of milk cooperatives in Gujarat and one of India's largest food products marketing organisations. With about 2.28 million producer members, its total milk handling capacity is about 6.7 million litres per day. The company has a wide range of products under its flagship brand Amul. These include milk and milk products, ice creams, chocolates, confectioneries and beverages. The company achieved a total turnover of about US$ 575 million during 2002-03, recording a growth of 15 per cent over the previous year.

Gujarat Ambuja Cements Ltd (GACL)

Gujarat Ambuja Cements Ltd is India's leading manufacturer and exporter of cement. It is also India's most profitable cement company and the world's least cost cement producer. GACL is the only cement company to be awarded the National Quality Award and the first Indian cement company to receive an ISO 9002 quality certification.

Gujarat State Fertilisers & Chemicals Ltd

Gujarat State Fertilisers & Chemicals Ltd operates in three business segments: fertiliser products, caprolactam and nylon products. It also manufactures nylon-6, nylon filament yarn, nylon chips and melamine and polymer products.

Gujarat Narmada Valley Fertilisers Company Ltd (GNFCL)

GGujarat Narmada Valley Fertilisers Company Ltd is a joint venture company between GSFC and the Gujarat Government. GNFC has the largest fuel-based ammonia plant in the world. It is also the largest single stream urea plant to be commissioned in the world. This project was set with an investment of about US$ 100 million at Bharuch, Gujarat.

Huber Chemicals India Ltd

Huber Chemicals India Ltd is a subsidiary of JM Huber Corp, Germany. It is in the chemicals and engineering business and has a facility at Jhagadia, an industrial estate in Bharuch, Gujarat.

Ingersoll-Rand India Ltd (IRIL)

Ingersoll-Rand India Ltd was established in 1926. The company has interests in fields of air solutions and infrastructure. IRIL has a plant in Naroda, near Ahmedabad. The Naroda facility is ISO 9001 certified and caters to a major chunk of the global demand for air-cooled reciprocating air compressors (T 30). The metrology laboratory at this facility is one of the few sophisticated laboratories in India with facilities to conduct tests as per ISI/BSI standards.

Lalbhai Group

The Lalbhai Group, founded in 1908 has grown to become one of India's most diversified business houses, with a significant presence in the textiles, ready-to-wear, agro-chemicals and telecom industries. Arvind Mills Ltd, one of the Group companies, is one of the world's largest producers of denim fabric. Atul Ltd is a leading manufacturer and exporter of over 500 high quality products, including agrochemicals, bulk drugs and bulk drug intermediates, cresols and cresol derivatives, dyes and dye intermediates, epoxy resins and epoxy hardeners, formaldehyde, specialty chemicals and wood adhesives.

Larsen and Toubro Ltd (L&T)

Larsen & Toubro Ltd is one of India's largest engineering and construction companies. The company has its heavy engineering workshops at Hazira, which manufactures reactors, pressure vessels, columns and heat exchangers for various industries. L&T's workshops are ISO 9001:2000, ISO 14001:1996 and OHSAS 18001:1999 certified.

Matsushita

Matsushita of Japan is a leader in battery products worldwide. In India, Matsushita has a joint venture with the Lakhanpal Group. The company manufactures batteries and battery appliances under the brand Novino and its plant is located at Makarpura Industrial Estate, Vadodara, in Gujarat.

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Nirma

Nirma, a US$ 351 million company, is another of Gujarat's success stories. It is the largest detergent manufacturer in India. It has a sales force of over 350,400 distributors, over 1 million retailers, and 300 million consumers. Its product line includes cosmetics, soaps, detergents and salt. The company has multi-location integrated manufacturing facilities and a broad product portfolio under its umbrella brand, Nirma. It manufactures India's largest selling detergent powder and exports to the Middle East and other countries. The company has planned backward and forward integration projects and is focusing on a strong R&D base for continuous product development.

Novartis India Ltd

Novartis India Ltd is a US$ 100 million company that employs close to 1,000 people. The company has two manufacturing facilities, at Kandla and Panoliplant in Gujarat dealing mainly in pharmaceuticals and agrochemical intermediates. In India, Novartis has collaborations with several domestic players, including Dr Reddy's, Torrent and Biocon.

Reliance Industries Ltd (RIL

Reliance Industries Ltd. is India’s largest and only private sector company to feature in Fortune Global 500 list of World. Having annual earnings of over US$ 25 billion (2006-2007), it has manufacturing facilities at three places in Gujarat namely Naroda, Jamnagar and Hazira. Its product line mainly includes synthetic textiles, fabrics, fibre intermediates, plastics, polyester, chemicals and petrochemicals. Its proposed establishment of Petroleum and Petrochemicals SEZ at Jamnagar is worth (US$ 1.1 billion).

Royal Dutch Shell

The Shell Group is a world leader in the Liquefied Natural Gas (LNG) business. In Gujarat, Shell's Hazira project is the largest of its ventures in India with investment over US$ 600 million. The company's operation at Hazira is considered to be the highest ever FDI in a Greenfield project in India. The project includes a port and an LNG terminal together with infrastructure that can handle 5 million metric tonnes of LNG per annum.

Rasna

Rasna holds 93 per cent market share in Indian soft drink concentrate market. It accounts for 82 per cent of in-house consumption of soft drink market and also has a wide range of products in processed foods category.

Siemens Ltd

Siemens Ltd is a 54.6 per cent subsidiary of Siemens AG. Based in Ahmedabad, the subsidiary manufactures electrical equipment, medical equipment, railway signalling equipment, telecom and data communication equipment and a host of other electrical products. The company has over 4,000 employees and revenue of over US$ 315 million.

Tata Chemicals Limited

An ISO-9001 /14001 certified company; Tata Chemicals Limited is India's leading manufacturer and marketer of inorganic chemicals and fertilisers. Established in 1939, Tata Chemicals operates India's largest manufacturing facility for soda ash at its integrated chemical complex at Mithapur on the Gujarat coast in Western India and is also among the world's largest producers of synthetic Soda Ash. Its range of chemicals produced at the Gujarat plant includes - apart from soda ash - caustic soda, salt, cement, sodium bicarbonate, bromine and bromine based compounds and gypsum. The plant has an installed capacity of 875,000 tonnes of soda ash, nearly 35 per cent of the country's capacity.

The 'avoid, reduce and recycle' philosophy that the company follows is exemplified best at its cement plant at Mithapur. The company is also a signatory to Responsible Care, a voluntary global initiative of the Chemical industry that demonstrates allegiance to safety, health and environmental issues. Mithapur has won the highest British Safety Council 5-star rating. The company has also developed the Mithapur salt works as a natural habitat for thousands of migratory birds and is pioneering marine conservation efforts through its active participation and support of the Whale Shark project.

Welspun

It has presence across 50 countries and its business activities include home textiles, saw pipes and steel, specialty texturised polyester yarn, bathrobes and retail. It is among top two terry towel producers and largest manufacturers of specialty polyester filament. It is also among the largest SAW pipe manufacturers in Asia.

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Export profile

The State of Gujarat contributes 14.3 percent to India’s total exports of merchandised goods and services. In the year 2005-06, State exports have shown an increase of 20 percent. The majority of exports include items from sectors such as Textiles, Petroleum, Chemicals, Pharmaceuticals, Engineering and Gems and Jewellery.

Exports from Kandla Port had increased by 6.61 percent during 2005-06 over the previous year. Export items from intermediate and minor ports include, Petrol, Clinker, Cement, Oil, Cakes, Bauxite, Paraxylene, Salt, Soda, Ash, Food grain, Cement Clinker, Ethylene. Gujarat has been at the forefront in attracting FDI. Between 1991 and 2004, Gujarat accounted for 6.44 per cent of India's FDI approvals.

The state offers investors a distinct advantage in terms of quality manpower and infrastructure facilities such as power and water supply, ports and now a gas grid. This is encouraging multinationals and leading Indian companies to turn their manufacturing plants in the state into global sourcing bases. For example, ABB plans to invest a further US$ 500 million in its Vadodara plant and use it as a global sourcing base for circuit breakers and other electrical equipment. Arvind Mills, the second largest denim manufacturer in the world has doubled its manufacturing capacity. GlaxoSmithKline India plans to use its manufacturing plant in Ankleshwar as a global sourcing hub for an intermediary used in manufacturing Zantac. Aventis, an international Pharma giant, will service its global requirements for glibenclamide from its plant in Ankleshwar, Gujarat.

Business Climate

Connectivity/Transport

Power & Gas

There are 41 Ports, 13 Airports (the highest number of airports in any state of India) and an extensive road and rail network. There is a 24 hour power supply to both Urban and Rural areas in Gujarat, as well as a 2,200 km Gas Grid for Gas supply to industrial areas.

Availability of Skilled Manpower

Proactive Governance

Gujarat is home to renowned academic and research institutions (IIM, NIFT, NID) and industrial training institutes in each district for training manpower at shop floor level. A strong regulatory and judiciary framework endorsing; SEZ Act, Gujarat Infrastructure Development Act, Gujarat Port Policy, Industrial Policy 2000, Build Operate Transfer Law, Cluster Development Scheme and Port Privatisation

Growing Economy & Industry

Investment Destination of Choice

The GSDP outstrips the country’s average, and has robust financial growth. Gujarat based companies have strong presence across all industry sectors and has manufacturing facilities of leading national and international companies In Outlook for Corporate Investments by Reserve Bank of India (RBI), Gujarat ranks 1st for private corporate investments in the country. State ranking analysis done by India Today Group, declares Gujarat as the top state in India, with infrastructure for attracting and sustaining investments.

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More Information on Gujarat

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