Investment plans of industries and local civic body in Chakan - Mhalunge - Talegaon areas
1.0 Pune, an ideal business location
India is composed of States and Union Territories. Maharashtra is located in the West Coast beside the Arabian Sea, at which shores rests Mumbai, the country’s financial capital with a population close to 20 million inhabitants (9% of Indian people), it is the most urbanised state, with larger GDP and origin of more than 40% of its exports.
Its people enjoy a rent per capita 60% above the country’s average and its economy has experienced the highest growth in the last few years. Having infrastructures notably superior to the rest of the country (it hosts the largest power generation capacity) an encouraging investing environment, and ample availability of skilled and semiskilled labour, this State is one of the most preferred business destinations for new investments both local as well as foreign in practically all segments.
That has led to the development of approx. 250 Industrial Parks spreading over a surface of 53.000 hectares. The State harbors several important cities, such as Bombay, Pune, Nasik, Aurangabad, Nagpur, and Kolhapur, all core bases of the Indian economic growth. Mumbai, its commercial and financial capital, hosts the headquarters of the most influential banks in the country, both public as well as private, including the Reserve Bank of India, 90% of the commercial banks, the two main Stock Exchange Markets (BSE and NSI), and the registered offices of more than half the main Indian business corporations (TATA, Reliance and Birla, are all in Mumbai) and the majority of the multinationals settled in India.
Its ports and airports handle every year 50% of the goods exported from India.
PUNE
Pune, known also as the Queen of Deccan (the extensive Hindustanic Plateau which seats most of the Indian territory), Oxford of the East and the Indian Detroit, is the cultural and industrial capital of Maharashtra and fifth or sixth city in the country.
The city, one of the most outstanding metropolitan areas in India, spreads over an area of more than 700 square kilometres, and provides shelter to approximately 4 million inhabitants.
It is located 170 km. from Bombay and 120 km. from the main sea port, to which its connected by a 6 lane highway (first large modern highway made in India), railway and plane (the local airport is currently being transformed into a bigger and international one, both for passengers as well as cargo flights).
Pune rests on the Hindustanic Plateau, at an altitude of 560 metres and 100 km. from the Arabian Sea. Its climate is relatively warm, with mild winters, cold by night but sunny and warm by day, not terribly hot summers, and moderate monsoons.
During winter, night temperature may fall up to 6ºC. In summer, temperature rarely shoots up beyond 40ºC. Rain falls almost exclusively between June and September, with an annual rainfall of 700 mm.
The British Raj as the Western Command Headquarters and one of their summer capitals selected the city, with an ancient tradition.
Pune developed fast under their influence and became one of the educational hubs in the country, till having currently more than 100 University Colleges, including 14 Engineering Schools and 10 Business Schools, which release every year near 200.000 graduates which nurture the State’s industrial growth. Official languages are English, Hindi and Marathi.
The city shelters several Industrial Parks within its Industrial Belt, among which outstand Ranjangaon, Chakan, Pimpri Chinchwad, Hinjewadi, Pirangut, Hadapsar and Talegaon.
This Parks have attracted a substantial number of industrial companies, both local and international, seduced by:
Ample availability of skilled labour and graduates and masters in all areas, and particularly in technical and management fields.
Infrastructures: Pune stands out, at a national level, for the extension and quality of its roads, railways, airports, its power generation capacity and, lately, for its communication lines and internet links.
State Government concern towards economic development through numerous incentives to the industry, particularly to the automotive, pharmaceutical, bio-technology and information technology enable services.
Location, climate and city’s life quality
Companies such as Panasonic, Matsushita, Whirpool, Daewoo, LG, Philips, Onida, Electrolux, Atlas Copco, Sandvik, Alfa Laval, Forbes Marshal, Cummins etc have selected Pune as their production main base in India.
Automotive Industry, Pune Detroit of India
The state produces 70% of the trucks, 90% of three wheelers, 80% of multi-utility vehicles, and approximately 40% of scooters and motorcycles in the country.
This represents 38% of the value of the vehicles sold and employs 40% of the people in the automobile segment.
Various big manufacturers have located assembly plants in Maharashtra, among which we find: Daimler Chrysler, Skoda, Fiat (2), John Deere, Piaggio, TATA Motor, Bajaj Auto, Bajaj Tempo, Kinetic Engineering and Mahindra & Mahindra.
This has nurture the growth of a buoyant auto-components industry which attracted many internacionally reknown such as Visteon, Yazaki, Johnson Controls, Toyo, Saint Gobain, Philips, Lemmerz, Thyssen Krupp, Graves, SKF, Nifco, Yutaka, Daikin, Lucas, Bosch, Honeywell Garret, Siemens, Huf, Lombardini, Carraro, Sumitomo, ZF Steering, Arvin Group, Spaco, DGP Hinoday, Wheels India, Kirloskar, Bharat Forge, Kalyani Group etc.
It is noteworthy to mention that 2 official homologation centres for automotive regulations, ARAI (Automotive Research Association of India), CIRT (Central Institute for Regional Transport) are located in Pune.
PHARMACY AND BIOTECHNOLOGY
India represents an internal market of sizable proportions for the pharmaceutical and biotechnological industries.
The particular characteristics of the India market, with low purchasing power united with low production cost and abundant availability of well qualified personnel have propelled a booming growth for these industries during the lst decade, till reaching an internationally competitive level.
Maharashtra has promoted the development of both these industries within the State and managed to make well-known institutions such as BARC, IIT, TIFR, UDCT, NCL, NCCS, NIV, NARI, ARI, NEERI, VSI etc locate their advanced research centres in Bombay and Pune. On top of these, several Defence Institutes located in Pune carry out since long ago research projects in bio-medicine, bio-informatics and bio-technology.
This has helped the State generate 40% of the national output in these fields.
Principal MNCs such as Glaxo Wellcome, Novartis, Pfizer, Johnson & Johnson, Abbott, Hoechst, Rhone Poulenc, place Maharashtra as their preferred destiny within India.
To those we can add some local giants like Wockhardt, CIPLA, LUPIN, Nicholas Piramal, Reliance etc. which have a hold for long and a substantial presence in Maharashtra.
SOFTWARE AND INFORMATION TECHNOLOG
Pune has become one of the most rapidly growing software hubs in the world. In just a few years it is covering the gap relative to cities with a long tradition is this field such as Bangalore o Hyderabad. Major players in the international arena hold and important presence in Pune’s Technology Parks such as IBM, Microsoft, Veritas, Geometric Software, Parametrics Technologies, Wipro, Infosys, Satyam, Tata Technologies Services (TCS), Zensar, Kanbay, KPIT Cummins, Mahindra Consulting, Cognizant, British Telecom, e-Zest, Cybage, Disha etc.
The availability of certified software engineers, along with the investment in infrastructures carried out in the last few years and the decisive commitment of the State Government to promote this industry, through the promotion of large Technology Parks and numerous incentives to investments in this field have attracted many companies making Pune, one of the most attractive destinies for IT and ITES (Information Technology Enabled Systems) in India.
35% of the country’s total number of Personal Computers is situated in Maharashtra, likewise 32% of internet users surf the net from the State. Therefore, it does not come as a surprise that more than 30% of the software applications that India exports, have their origin in the State’s more than 1200 companies, primarily from Mumbai and Pune.
In the field of BPO (Business Process Outsourcing), Pune outstands as the city with more projects under development in 2004-2005. Sector giants like Msource, Spectramind have large centres in Pune.
Infosys, the Indian software Flagship Company, acquired in 2004, 400,000 m2 land in Pune, where it is constructing 11 buildings to lodge its bigger BPO base, which will accommodate 25000 people in 2005. WIPRO, other major player in the industry, signed at the same time 240.000 m2 beside Infosys, with similar intentions.
P&O Nedlloyd, Wins, Convergys, Wipro, HSBC etc. have their worldwide back up offices in Pune
2.0 Investments in Chakan
Pune has witnessed an increase in the industrial activity and absorption of land space in the 1st qtr 2007. Automotive giants Volkswagen, Daimler Chrysler and Mahendra & Mahendra have secured land with the Maharashtra government for their respective automobile manufacturing plants in Chakan - the leading industrial destination. While GM has commenced the construction in the 1st qtr 2007 others like VW and Daimler Chrysler would soon follow suit in the 2nd Qtr 2007. Land parcels in the Chakan MIDC as already been allotted to various domestic and MNCs. The increase in manufacturing units mushrooming in Talegaon and Chakan has also lead to a rise in the residential projects in the vicinity. Recent Transactions recorded here are 110 acres by DOW Chemicals, Behre Automation 120,000 sft. Other auto majors like Fiat-Tata motors; Mahindra and Mahindra have acquired land on the north east of Pune at Ranjangaon.
Land absorption in peripherals has been on the lower side due to high cost and non-availability of clear and marketable title land parcels. The city has witnessed a decrease in the land banking by various investors and developers. Though a large quantum of the same is being negotiated for and is at the MOU stage. The 2 and the 3 quarter of 2007 will be critical with a lot of these discussions concluding into transactions.
3.0 SEZ for sector specofic for R&D, Chakan, District Pune
The Special Economic Zone coming up in Chakan has the following parameters;
AREA IN HECTARES: 100
WATER SUPPLY SOURCE: Andhra Valley Project
POWER SUPPLY: 220 KVA capacity substations
LOCATION & ACCESS:
Located on Talegaon-Chakan SH.No.55 about 7kms from Chakan
30 kms from Pune city
28 kms from Pune airport
20kms from Pimpri Chinchwad IA
140 kms from Mumbai
110 kms from JNPT
220 kms from Aurangabad
180 kms from Nashik
20 kms from Talegaon
INVESTMENT EXPECTED: (Rs. in Crores) - 200
EMPLOYMENT EXPECTED: 10000