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Clean India Show moves to Gujarat
• Progress • Opportunities

by Admin
0 comment

Automotive Industry

Gujarat has emerged as the Indian Auto hub leveraging its strengths through sound economic policies and competent management by the state government. Low transaction cost for accessing market, Good rail connectivity, the Delhi-Mumbai Dedicated Freight Corridor and port development initiatives have helped establish 30 clusters comprising castings & machine tools, brass parts, oil engines & electric motors, submersible pumps, industrial valves & bearings and auto-ancillaries. The three major clusters are Rajkot, Sanand and Halol. Among the leading investments made are by GM invested `2,000 crore in its plant at Halol in Vadodara `11,000 crore in process; Tata invested `29000 crore in Sanand, Apollo Tyres Ltd invested `2,000; CEAT Ltd, the flagship company of RPG Enterprises Ltd invested `1,500 crore in Halol, Ford made a commitment to invest $0.88 billion, Maruti in process to invest `5500 crore to establish two manufacturing plants.

Petroleum, Chemicals & Petrochemicals

Gujarat’s chemicals & petrochemicals industry is one of the fastest growing sectors in the State’s economy and is the leader in the production of chemical and allied products in India. The industry offers a wide spectrum of opportunities for investors from India and abroad. The well-diversified chemical industry has a complete portfolio of chemical products including petrochemicals and downstream, pharmaceuticals, dyes and intermediates. While the State chemicals industry exhibits several similarities to the global chemical industry, there are several characteristics
specific to the Gujarat across sub-segments. At the industry level, Gujarat chemicals industry is characterised by:

• High domestic demand potential, as the Indian markets develop and per capita consumption levels increase

• High degree of fragmentation and small-scale operations

• Limited emphasis on exports due to domestic market focus and smaller scale of operation

• Low cost competitiveness as compared to other countries

The chemical industry in Gujarat is a significant component of the State’s economy, contributing to more than 51% of Indian production of major chemicals with revenues at approximately more than US$3 billion. It contributes 15% of the total national chemical exports. Petrochemical Industry in the state produces 13.048 million tonnes of petrochemical products and also contributes around 62% to the total production of the country. Bulk of the exports from this sector goes to markets such as USA, Europe and other developed nations – a clear sign of the global competitiveness. Gujarat has been the ideal destination for several leading MNCs including BASF, Bayer, DuPont, GE Plastics, Cairn Energy, Solvay, Shell, British Gas, Perstrop, Huber, Heubach Colours and Cheminova.

Food & Agro

India is: world’s largest producer of milk and livestock, with an annual production of 122 Million Metric Tonnes (MMT) of milk with 528 million livestock, second largest producer of fruits and vegetables, producing 213MMT and 3rd largest producer of food grains, producing 250MMT and fish production of 8.3MMT.

While Agriculture contributes to 18% of Indian GDP, Food Processing contributes 14% of the manufacturing GDP, amounting to `2,800 billion. The Indian food market is slated to reach USD300 billion in 2015. Exports of agricultural products are expected to account for 5% of the world’s agriculture exports by 2014.

As far as Gujarat is concerned, it tops the agriculture growth table in the country growing at a CAGR of 10.7% over the last decade. Animal husbandry plays a vital role in Gujarat’s rural economy, while contributing nearly 5% to the state GSD. The State has received cumulative foreign direct investment (FDI) inflows across all sectors worth $7.2 billion during April 2000 to April 2011. About 690 MoUs & Announcements were signed in Vibrant Gujarat 2011 for projects to be established in the Food and Agri sector. With a Proposed investment of `34,851 crore, the average investment per MoU is about `50 crore.

Gujarat Agro Industries Corporation (GAIC) promotes agricultural activities at the ground-level and aids the development of agro industries in the state. Gujarat’s dairy sector consists of 17 district milk producers’ unions. There are around 14,598 milk co-operative societies in the state. The total milk production in Gujarat was 9.3 million tonnes in 2010-11. The National Dairy Development Board in Anand is involved in promoting, financing and supporting milk-distribution organisations across India. GCMMF, a cooperative dairy giant, sells Amul and Sagar brands of dairy products through one million retailers and 5,000 distributors. GCMMF became the first billion-dollar cooperative in 2006-07 and registered a turnover of €0.814 billion (US$1.1 billion). GCMMF recorded a turnover of €1.85 billion (US$2.5 billion) in 2011-12.

State level apex body of milk cooperatives in Gujarat aims to provide remunerative returns to farmers and also serves the interest of consumers by providing quality products which are good value for money.

Mega Food Park Scheme of India (MFPS)

MFPS is expected to facilitate the achievement of the Vision 2015 of Ministry of Food Processing Industries to raise the processing of perishables in the country from the existing 6 to 20%, value addition from 20 to 35% and the share in global food trade from 1.5 to 3% by the year 2015. The present scheme/benefits of Mega Food Park of Government of India will be extended to the Mega Agribusiness Parks be developed in Gujarat over the next three years. Amul, the brand that spurred a white revolution in India is dairy number one in Asia & number two in the world. Among the other investors are McCain, McDonald’s, Desai Fruits and Vegetables, Riddhi Siddhi Group, Balaji Group, etc.

Suprita Anupam

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