Investment Brochure

RajasthanCeramics and Glass Sector

Rajasthan

Delhi

INDIA

Mumbai

Rajasthanat a Glance

Area 342,239 sq km Largest State in India

Location North-western India; shares domestic borders with Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and Gujarat

Population 68.5 million (Economic Review 2013-14)

Capital Jaipur

Time Zone GMT + 5 hours, 30 minutes

Districts 33

Share of India's GDP 4.7%

Rajasthan is endowed with rich reserves of ceramic materials and has high quality

deposits of ball clay and fire clay, silica sand, feldspar, gypsum, china clay, limestone,

talcum and dolomite.

Almost all major minerals required for Ceramics & Glass sector are available in Rajasthan

and the state accounts for more than 70% of India’s bone china tableware production.

Currently around 500 ceramic units covering glass and mineral grinding units are

operating successfully in Rajasthan. In view of huge natural resources and manpower

availability, there exists a considerable scope for further investment in this sector.

RajasthanIndia’s Emerging Investment Destination

for Ceramics and Glass Sector

CompetitiveAdvantage + Rajasthan forms a considerable part of the National Capital Region which has a huge

consuming population with respect to the Ceramic & Glass Industry

+ Exclusive Ceramic & Glass Industrial hub spread over 750 acres being developed by the State

Government at Ghilot near Neemrana (Alwar district)

+ To encourage investments in the ceramic, glass & allied sectors piped natural gas will be

made available soon within the state

+ Availability of high quality raw material and intermediate products at reasonable cost

+ Some major global companies have already setup huge manufacturing facilities in the state

+ Delhi-Mumbai Industrial Corridor (DMIC) passing through the state will provide excellent

logistics & transportation infrastructure

+ Skilled and relatively low cost labour with a history of good industrial relations

+ A large domestic market

+ Investor friendly Government which is highly supportive of private sector investment - hassle

free simplified procedures through Single Window investment clearance

+ Special incentive package for ceramics & glass units

Key Segments/Products+ Tiles

+ Sanitary-ware

+ Pottery-ware

+ Glass insulators

+ Porcelain and bone china tableware

+ Refractories

+ Float glass, fabricated glass, fibre glass

+ Bio-ceramics

+ Industrial ceramics

With proximity to Delhi, a part of the state is located within National

Capital Region (NCR) which is a well known established industrial hub.

This proximity provides immediate access to a huge consumer market.

District Alwar is a part of NCR and is less than 100 km from Indira

Gandhi International Airport, New Delhi, off the Jaipur-Delhi National

Highway (NH-8). It also lies along the inter-state natural gas pipe-line.

Bikaner – a Ceramic Insulator Industry Hub in RajasthanBikaner is situated in the north-west of Rajasthan. Certain parts of the

district such as Kolayat, Nokha, Dulmera, Mudh, Gura and Lunkaransar

have large mineral deposits consisting of white clay, gypsum, lignite,

etc. The annual volume of white clay mined in the region is about 8

lakh metric ton. Rajasthan is a leading producer of clay accounting for

40% of India's production.

+ Ceramic Industry has an important place in the Bikaner district’s

industrial scenario. There are huge deposits of raw material for

Ceramic Industry viz. china clay, bal clay etc in the district. Bikaner

district alone accounts for 80% of Rajasthan’s total clay production

+ POP, glazed wall tiles, sanitary wares, pipes, clay grinding, pottery

insulators are the types of units located in Bikaner

+ Areas such as Nokha, Kolayat in Bikaner have huge potential for

developing sanitary ware, insulators, refractory units

+ There is ample scope for setting up of cup, saucer and art pottery

units, ceramic glaze tiles manufacturing units. Establishment of

clay washing plants, special refractory fire-bricks units

The quality of clay found in Rajasthan is superior to those found in

other parts of the country and is used in the manufacturing of ceramic

products. The availability of white clay has led to the development of

pottery units as well as ceramic industry in the region. Despite being a

raw material rich region, the Ceramic Industry is still largely

underdeveloped. The availability of good quality clay coupled with

locally available craftsmanship gives Rajasthan an opportunity to

emerge as an important cluster for ceramics in the country.

Strategic Location

Bikaner, Rajasthan

BIKANER

Jaipur

BIKANER

Nokha

Kolayat

Dulmera

Lunkaransar

NH 15

To J

odhpur

To G

angan

agar

Dedicated Land Parcel at Ghiloth for Ceramics & Glass SectorGhiloth – a Ceramic & Glass (Industrial) ZoneA dedicated 750-acre Ceramic & Glass (Industrial) Zone is notified

at Ghiloth near Neemrana in Alwar district of Rajasthan. This will

be a part of Delhi-Mumbai Industrial Corridor (DMIC). Ghiloth is

located approximately 100 km from the Delhi airport, off the

Jaipur-Delhi National Highway (NH-8) along the interstate natural

gas pipe-line.

The zone promises to be an ideal location for units manufacturing

ceramic floor tiles & wall tiles, sanitary ware, porcelain & bone

china tableware, ceramic colours & pigments, glass insulators,

float glass, bio-ceramics, refractories and industrial ceramics.

RIICO'sNew Industrial Complex(Majarkanth) Neemrana

RIICO Industrial AreaShahjhanpur

RIICO Industrial AreaBehrorTo Alwar

To A

lwar

To A

lwar

Rewari

Dharuhera

RIICO'sBhiwadi Industrial Area

To Jaipur

Railway StationKhatuwas

Proposed Industrial Area

Ghiloth

Proposed ICD

To Delhi

National Highway (NH-8)

State Highway

Railway Line

Indicative Map. Not to Scale.

ToDelhi

RIICO Industrial AreaNeemrana Phase-I, II& E.P.I.P.

IGI Airport, New Delhi

(Just 100 km fromIGI Airport, New Delhi)

Rajasthan is endowed with rich reserves of ceramic materials. The deposits

of Ball Clay and Fire Clay at Kolayat, Kharduja, Devikot, Baser, Silica Sand at

Bundi and other locations, Feldspar at Beawar and Ajmer, Gypsum at

Nagaur, Ganganagar and Bikaner, China Clay at Neem Ka Thana, Limestone

at Gotan, Talcum at Dausa and Dolomite at Bhilwara, Alwar and Udaipur are

known for their quality in the ceramic world.

Abundant Availability of Superior Quality Raw Material

Rajasthan, India

Ghilot

Gypsum, Limestone

Silica

Feldspar & Quartz

Dolomite, China Clay

Talcum

Ball clay, fire clay

Clay

Currently around 500 ceramic units covering the entire spectrum of

the value chain are operating successfully in Rajasthan which

includes tiles, sanitary-ware, insulators, tableware, refractories and

glass (including all varieties ranging from float glass, fabricated

glass, fibre glass to automotive glass). The existing companies have

plans to substantially increase their production capacities in the

coming years to meet the rapidly growing demands of the market.

French major, Saint Gobain Glass is setting up a World Glass Complex

in Kaharani Industrial area in Bhiwadi with an investment of `1000

crore, housing a multitude of manufacturing facilities.

Kajaria Ceramics Ltd., Bhiwadi, the largest manufacturer of ceramic

tiles in India has a manufacturing plant at Gailpur with an annual

capacity of 14.1 million sqm.

Liberty Whiteware Ltd. has sanitary-ware unit, located at Neemrana.

The company has an annual production capacity of 500,000 pieces

per annum.

JCPL Ceramics Plant is spread over 35,000 sq. yards on the outskirts

of Jaipur. It has one of the most innovative and huge bone china

plant with capacity of 1,500 tonnes per annum in the country.

Existence of leading players across the value chain

B. SanthanamManaging Director, Saint Gobain Glass India Ltd.

“Our Rajasthan project is one of the large

investments of Saint Gobain in India in the coming

decade. The State govt. has been very welcoming

and cooperative right from the day the project was

conceived. Our experience with BIP has been very

positive.”

Others:

+ Modern Insulators Ltd., Abu Road

+ EID Parry India Ltd., Alwar

+ Orient Abrasives Ltd., Bhiwadi

+ Orient Refractories Ltd., Bhiwadi

+ SS & Jaipur Glass & Potteries

+ Ceramics Pvt. Ltd., Jaipur

+ Bharat Potteries Ltd., Jaipur

+ Ambe Syned

+ Hindusthan National Glass India Ltd.,

Neemrana

+ Hopewell Ceramics Pvt. Ltd., Jaipur

Government of India has proposed setting up of a

Dedicated Freight Corridor (DFC) between Delhi and

Mumbai. DFC will be high axle new railway connectivity

with multi-modal linkages. Out of the total 1,483 km of

the length of DFC, 39% is falling in Rajasthan. It is

expected to be completed and commissioned by 2016.

The area of 150 km on both sides of the DFC will be

developed as the Delhi-Mumbai Industrial Corridor

(DMIC). 46% of the total DMIC Project Influence Area (PIA)

falls in the state and about 60% of the State’s area falls

under the PIA.

DFC and DMIC would provide easy access to the Northern

and Western markets. Major industrial zones such as

Jaipur, Alwar (including the proposed Ceramic industrial

zone at Ghilot), Kota, Bhilwara, Dausa, Pah, Sikar and

Sirohi will tremendously benefit from the project.

Integrated Corridor Development

Industrial RegionsA

B

Bhiwadi-Neemrana

Ajmer-Kishangarh

Industrial AreasC

D

Jaipur

Bhilwara-ChittorgarhE Jodhpur-Pali

DFC Alignment

DMIC Influence

Junctions along DFC

End Terminals

Delhi

Haryana

Punjab

Gujarat

MadhyaPradesh

Rajasthan Jaipur

CBB

DDD

EEE

Phulera

Rewari

Dadri

Kota

Marwar Jn.

Palanpur

Gothangam

JN Port

Vasai Road

Jodhpur

Pirthala

AAAAAA

Maharashtra

B

A

Delhi-Mumbai

Industrial Corridor

Amli Road/Sabarmati

Vadodara (Makarpura)

Rajasthan’s labour costs are considerably lower than in its peer states – Gujarat and Haryana. As per the ‘Salary Survey Primer 2011’ issued by Teamlease, entry level wages and salaries for engineers in manufacturing are 30-40% lower in Rajasthan than in its peer states. Further, Rajasthan’s automotive hub in the north of the state with its proximity to the NCR provides it with a good additional source of automotive-experienced management and labour.

Also, there has been a good industrial relations history without any major unrest between labour unions and management of industrial units.

Skilled and Relatively Low Cost Labour

Rajasthan

Peer states

Comparative salary rates

Cities and towns of Rajasthan offer excellent quality of life to its residents.

+ Cities and towns are well planned, safe and un-congested and have modern

urban infrastructure. They offer a variety of economic and modern housing

options

+ Excellent medical facilities are easily available even in small towns. The state

is now home to numerous specialty and super specialty hospitals as well

+ The cities have good educational institutions including public and convent

schools. Some of them like the MGD Girls School, the Mayo College, BITS

(Pilani) are institutions of national repute. Undergraduate and postgraduate

colleges and technical colleges offer a variety of traditional and new age

courses

+ Supermarkets, brand stores, departmental stores and shopping malls are

commonplace. Cities offer a variety of recreations options with multiplexes,

restaurants, cafés, theatres, art galleries, health centres, spas, clubs, pubs and

discotheques

+ Rajasthan has a very peaceful environment with one of the lowest crime rates

in the country

Good Quality of Life

Single WindowInvestment Clearance

A Welcoming &Supportive GovernmentGenerating higher levels of economic growth and prosperity through increased

private sector investment is top priority for the state of Rajasthan. The Bureau of

Investment Promotion (BIP) is the primary state institution supporting inward

private sector investment in Rajasthan. BIP is committed to providing a

professional service and a timely response to current and prospective investors

in the state.

The Agency assists investors to objectively evaluate Rajasthan as a location for

their investment projects. It works with State and Local Governmental

authorities to expedite approvals, where necessary, to enable a fast start-up of

operations. The State Government has introduced a Single Window Investment

Clearance that serves as a single point interface between investors and various

government departments and ensures faster decision-making on applications

for licenses and permits. BIP is the nodal agency for the Single Window

Investment Clearance.

Rajasthan Investment Promotion Scheme 2010The Rajasthan Investment Promotion Scheme (RIPS) 2010 is a package of financial

incentives for investors.

Exemption from Taxes:Some of the tax exemptions announced in RIPS are

+ 50% exemption from payment of Electricity duty

+ 50% exemption from payment of land Tax

+ 50% exemption from payment of Stamp duty on purchase or

lease of land and construction/improvement on such land

+ 50% exemption from payment of conversion charge payable for

change of land use

The exemptions have been announced for seven years for payment of

Electricity duty, and Land Tax.

+ Time bound approvals and clearances

+ Online submission of application

+ For projects of more than `1 crore, it is

mandatory to submit application only through

this system to render transparency to the

system

+ BIP is the nodal agency for this system.

An act has been passed to give the system a

statutory framework

A special incentive package duly customized for the promotion of Ceramics and Glass

sector has been announced.

The package shall be applicable to the following class of enterprises:

+ New Enterprise

+ Existing enterprise making investment for modernization/expansion

+ Existing enterprise making investment for diversification in glass and/or ceramic

industry

Minimum investment to be eligible under the package shall be `50 crore

Subsidies+ Maximum amount of subsidy shall be 75% of the total amount of tax(es) that is VAT and

CST or SGST (as and when applicable) which have become due and have been

deposited into the government exchequer

+ Investment subsidy to all eligible investors of an amount equal to a maximum of 70% of

the tax deposited, without any linkage with payment of interest and wages

+ Employment generation subsidy to a maximum of 5% @ Rs.15000 per

employee/annum. For women, SC/ST and persons with disability this amount has been

enhanced to Rs.18,000 per employee/annum

Special Incentive Package for Ceramic & Glass Sector

In addition to the subsidies and exemptions provided by the RIPS, for investments above US$100m and providing minimum employment

for 200 people, the state is willing to provide special customized incentive packages tailored to the needs of individual investors. The state's

aim is to ensure that Rajasthan is competitive with peer states in terms of financial incentives offered to major investors.

Customized Incentive Packages for Large Investments

To give boost to Ceramic Industry in Rajasthan, the Government is planning to formulate

‘Revised Ceramic Promotion Policy’ and develop Bikaner, Ajmer and other selected areas

of the state as Ceramic hubs. (Ref: Budget announcements 2014-15)

BIP’s Messageto InvestorsAs the IPA for Rajasthan, the Bureau of Investment Promotion (BIP) offers you a dedicated professional

support team for your Ceramics and Glass Sector investment.

We are a One Stop Shop for all your investment needs, from project inception through completion to

investment aftercare.

Guided by the highest standards of business ethics, we promise to make a timely and effective response

to your enquiries and to provide information on all aspects of investment in Rajasthan.

We look forward to meeting with you soon and we warmly invite you to visit Rajasthan to see for

yourself the exciting opportunities available.

Please contact us using the details given on the back cover.

For further assistance, please contact us at:

Bureau of Investment PromotionUdyog Bhawan, Tilak Marg, Jaipur 302005Rajasthan, India Tel. +91-141-2227274, 2227812, 2227713, 5198300Fax +91-141-2227506www.investrajasthan.com E-mail: bip.raj@nic.in

Please contact:

Commissioner, Investment & NRIs

Managing Director, RIICO Ltd.

Ms. Monica ChoudharyCeramic and Glass Sector Expert, BIP

Knowledge Partners

RIICO Ltd., Udyog Bhawan,Tilak Marg, Jaipur 302005. Tel. +91-141-5113201, 2227751-55Fax. +91-141-5104804www.riico.co.in Email: riico@riico.co.in