Clean India Show moves to Gujarat • Progress • Opportunities

This north-western State of India promises a bright industrial future for the country. When rest of the states grapple to overcome hurdles of energy shortage, policy paralysis, execution delays and slow growth of infrastructure, Gujarat has been riding high with industry friendly reforms, good roads, reliable electricity and effective governance. The State’s economy is expected to go double digit even as India’s rate is on a slow pace. Aptly so, Clean India Show is being organized in Gujarat this year end, giving multiple sectors – industries, healthcare, hospitality, infrastructure and other industries – an opportunity to understand and implement professional cleaning and international maintenance practices. Gujarat is the second preferred global investment destination, ninth largest economy in the world by nominal GDP and third largest by purchasing power parity (PPP). Most importantly, the State has ‘cleanliness and sanitation’ at the top of its agenda for sustainable growth.

Clean India Journal brings to its readers the essential facts & figures of Gujarat and the views of industrial associations supporting and looking forward to the Clean India Show.

Facts

• World’s largest grass root petroleum refinery at Jamnagar

• India’s first LNG chemical port terminal at Hazira

• World’s largest producer of processed diamonds

• Amul ranked world’s top 21 largest dairy business by International Farm Comparison Network (IFCN)

• World’s largest producer of castor and cumin

• World’s largest gas based single location sponge iron plant

• World’s third largest producer of denim

• World’s largest single location copper smelter at Dahej

Investment Destination highlights

• Offers 30% of Petrochemicals, 50% Chemicals and Pharmaceuticals business

• Tops Agri Growth table at 9.6% with Agriculture Infrastructure achieving maximum growth between 200-2008

• Gems and Jewellery Business in Gujarat is the fastest growing sectors in the country. Supported by Policy Initiatives by the Government, in addition to cutting and polishing of Diamonds, processing and jewellery design has also gained prominence.

• It is the largest producer (35%) and exporter (60%) of cotton and is the third largest denim producer in the world. It offers India’s 12% textile exports. Known as the ‘Manchester of the East’ and ‘Denim City.’ Gujarat’s six percent of total Industrial Production comes from textile industry. Double digit growth rate with GSDP of USD 75 billion.

• Agricultural output growth over last 10 years: 11%

• GSDP contribution from Manufacturing: 29%, almost double to that of the rest of India

• Degree of openness: 53%

• A state with the highest share in investments under implemented projects in India: 26%

‘Gujarat can be the largest growing market for cleaning industry’

If manufacturing acts as the mother or ‘root’ of all the industries and ITES as the ‘trunk,’ then cleaning eventually is taken as the only industry which grows along with all these core industries equipment such as Sweepers (with/without aspirator), vacuum cleaners (dry and wet & dry), carpet cleaners (upright machines and injection extractors), high pressure washers (hot & cold), steam cleaners, single disc machines, scrubber driers; consumables – cleaning chemicals (for wash rooms, kitchen hygiene, floor cleaning, carpet cleaning, odour control, window cleaning, etc.), tissues and tools and accessories – mops and mops holders, including multi-purpose trolleys (including wringer buckets), window cleaning tools & accessories and other floor cleaning tools (brushes, pads, discs, wipers, etc.)

Untapped cleaning potential of Gujarat sectorwise

Manufacturing

On an average, a manufacturing company invests 1-5% of its budget for cleaning & maintenance. Under manufacturing – Chemical, Textile and Engineering (heavy & light) would register a $200 billion by 2025 with $80 billion investment expected by 2017. Key enablers that have equipped the state so far, are: strong local demand, FDI & technology transfer, sound base of engineering SMEs cluster, availability of skilled manpower, integrated industrial infrastructure and presence across the value chain.

• GSDP of manufacturing sector of Gujarat is ~ `131,889 crore (USD26.4 billion) (at current prices) in 2010-11

• Total investment by 2010 in the manufacturing sector in Gujarat was `342,079 crore (USD 68.4 billion)

• CAGR of investments in manufacturing sector in last six years ~ 19%

• Gujarat contributes around 9% to national engineering output and around 8% to the national engineering workforce

• The sector contributes around 18% to total industrial production in Gujarat

• Gujarat is home to more than 30 engineering clusters; housing around 5,000 engineering factories in and around these clusters in the state

Maintaining Schedules

Processing and manufacturing 150 tonnes of corrugated box monthly, Cascade Engineers since 1978 is keenly concerned about cleaning and maintenance at their two manufacturing units – one of 1500sq yards and another 500sq yards, cleaned on a daily basis with deep cleaning done every week. The daily cleaning includes shop floor, washrooms, and other sanitary areas.

The cleaning is usually done during the lunch time to avoid any sort of drop in efficiency. So far, very general and traditional cleaning equipment and tools such as brooms, mops, wipes and cotton wipes with anti-corrosion powders with water (for machine) along with one vacuum cleaner are being used. Plant cleaning is done on Wednesday afternoon. We have part residues from our corrugated roll, which can’t be cleaned by vacuum cleaner.

Around 15-20 people work for two to three hours to clean the whole premise. Various recyclers come to get the paper waste. At one plant we have three washrooms, two for workers. Improper use of washrooms does create problems. Around 1% of the total turnover is used for cleaning. Serving to critical ends: catering, chemicals, pharmaceuticals and engineering, we are looking for more active participation from our association (Vatva Industries Association) members to ensure more awareness and smooth drive.

Vashishth K. Vadhavana

Director, Casc
ade Engineers, Ahmedabad

Affordable Solutions

We are basically in parts manufacturing/plastic processing equipment/engineering sector. Our facility has been built with concrete. Regular maintenance is being done, but after a period of time, the concrete has to be repaired or replaced. The complete plant area is 750sqm. Daily cleaning is done traditionally using brooms and mops. Cleaning the ceiling/windows is done by conventional methods using long-stick broom.

Around 50-60 people work in two shifts. We use only detergent and phenyl for washing and sanitizing purposes. Yes, there is dirty smell emanating at times from the washrooms.

We will be interested in knowing about better equipment, chemicals and tools & other accessories; if affordable to our pocket, will be eager to adopt it.

Tejas R. Patel

MD, Radhakrishna Extrusions Pvt Ltd, Vatva

Engineering

The sector is major dominated by heavy engineering almost 80% of the total. The sector has attracted investments worth 4,481 crore during 1991 to 2011; contributing 12.66% of the overall FDI attracted by Gujarat during the same period contributing about 59.31% of the total foreign technology transfer agreements commissioned/under implementation in terms of investments. The state government has helped grow the engineering SME clusters in Ahmedabad, Anand, Rajkot, Vadodara, Surendranagar, Jamnagar, Mehsana, Panchmahal and Kutch. Investment plans have been laid to boost it further:

• Three precision engineering clusters with state-of-the-art infrastructure are being developed in the first phase in Halol, Sanand and Mandal – Becharaji (by GIDC)

• A Centre of Excellence along with facilities for product testing and validation, will be developed in each of these clusters

• The benefits of existing industrial park scheme will be extended to these clusters

• The units in these clusters will be networked with the prime educational institutions in the country, so as to enhance technology levels through improved skills and capabilities

• Development of ancillaries around these estates will be encouraged

• Government will identify and provide large tracts of land for specialized trials of equipment
Cleaning Woessss

We are manu-facturing 50 filter presses per month. Apart from that, we are also into the designing and manufacturing of glass lined reactors, agitators, storage tanks, distillation columns, pipes, pipe fittings and valves. We procure plastics into pallets and plates as well. Spread over 60,000sqft prime location of Vatva, the company is fully equipped with complete state-of-the-art R&D wing. We have seven to eight washrooms with around 350 staff working at the plant. Yes, cleanliness is an issue; we have bought Roots Multiclean Ltd machines for floor cleaning. In spite of putting Kota stones, we are facing cleanliness problems and are open to the service providers to outsource the entire facility management.

Sachin Patel

MD-Sachin Industries Ltd Ahmedabad

Technical Textile

• The Gujarat market is estimated around `6,100 crore in 2011-12 contributing around 10% to the national Technical Textiles output

• Currently, 1,000 plus technical textiles units are already present in Gujarat, with presence in all the 12 sub-sectors of technical textiles

• There are more than 200 products classified as technical textiles

• Technical textiles units are mainly concentrated in Ahmedabad, Surat, Vadodara and Kutch

• Packtech (64%), Hometech (10%), Clothtech (9%) and Indutech (7%) are the four largest contributors; together contributing around 90% of states technical textile production

• It is also the largest producer of cotton in India; contributing to more than 30% of the cotton produced in India

• Non-woven industry is growing around 8-10% CAGR over the last five years

• There are above 26 Non-woven fabric manufacturing units in Gujarat; around 50% of the non-woven manufacturing units in India are located in Gujarat

• Non-woven technology finds its application in Mobiltech, Meditech, Protech and Geotech

• Increasing awareness about hygiene using non-woven products and its contribution towards green environment are the key success factors for the sector

Textile market in Gujarat is estimated to be $25 billion by 2017. Growth is envisaged to be driven by Technical Textiles which has use in more than 200 different products across sectors. Attract at least 2,000 new units with an investment worth `10,000 crore by introducing Technical Textile Mission. This will make the state Technical Textiles to capture 50% of the Indian market.

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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