Maharashtra – IT ITeS Sectorcms.midcindia.org/Lists/Profile List/Attachments/12/Maharashtra... ·...

Maharashtra –IT ITeS SectorNovember 2014

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Preface

§ The Maharashtra IT ITeS Sector Profile has been developed by Ernst & Young India LLP, the Knowledge Partner to Maharashtra Industrial DevelopmentCorporation to provide hand holding assistance to investors.

§ The intention is to provide executives a quick overview to the IT ITeS Sector in the State.

§ The complex decision-making process involved in undertaking foreign operations requires an intimate knowledge of a country’s and a State’s commercialclimate as well as recognition of the fact that this climate is continuously evolving. Companies doing business in India, or planning to do so, would be well-advised to obtain current and detailed information from experienced professionals. The information presented in this book has been validated w.e.fSeptember 2014.

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7.58.6

10.412.0

13.7

2008-09 2009-10 2010-11 2011-12 2012-13

Maharashtra's GSDP in INR Lakh Crore

Macroeconomic Profile- Economy

§ The manufacturing sector contributes a significant 18.51 per cent to the state’s GSDP. Amongst the 10 states with the highest GSDP (GrossState Domestic Product) in India, Maharashtra is one of the leading states in terms of contribution of manufacturing share to the GSDP.

§ Maharashtra has a Per Capita Income (PCI) of INR 1,07,670. The state has the highest per capita income amongst the 10 states with the highestGSDP in India.

8.43%

LEADER

Maharashtra has thehighest GSDP inIndia – INR 13.7 LakhCrore (USD 228.3Billion)

CAGR of GSDP atconstant prices overthe last 5 years

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5.206.00 6.24

7.85

10.05

2007-08 2008-09 2009-10 2010-11 2011-12

Maharashtra's Industrial Output in INR Lakh Crore

Macroeconomic Profile- Industry

§ The state recorded the highest Industrial Value Addition in the nation. The Gross Value Added by all industries in the state amounted to INR 1,79,222crore (USD 29.87 billion) in the year 2011-12, which is 59 per cent greater than the value addition of its closest follower.

§ Maharashtra has the second highest number of factories and has one of the lowest number of industrial disputes in the country.

17.41%

LEADER

Highest IndustrialOutput in the nation– INR 10.05 LakhCrore (USD 167.5Billion)

Maharashtra’s sharein India’s totalIndustrial Output

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Macroeconomic Profile- Investments

§ Maharashtra has attracted INR 3,16,082 crore of FDI over the period 2000- 2014, which is almost one-third of the nation’s total FDI inflows receivedover the same period.

§ New investment projects announced in 2013-14 which would be set in Maharashtra are proposed to bring in INR 27,795 crore of investment in the state.

§ In 2013-14, the state contributed 10.86 per cent of the total projects completed in India in terms of investment value. With a total of INR 28,406 crore ofinvestment projects completed in the state, Maharashtra is one of the leading states in the country in terms of project completion (by investment value).

One -Third

LEADERHighest FDI Inflowsin the nation

Maharashtra’s sharein India’s FDI Inflowsover the period 2000- 2014

27,669

44,664 47,359

2010-11 2011-12 2012-13

Maharashtra FDI Inflows in INR Crore

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ROAD AND RAILWAYS§ More than 99 per cent of the villages are well connected with all

weather roads in the state§ 9.3 percent of total railway network in the country§ 2 Major Railway zones§ Dry Ports, Inland Container Depots, Truck terminals and Railway

sidings for easy freight movement

AIR AND WATER PORTS§ 4 International and 7 Domestic Airports§ 6 MIDC airstrips§ 2 Major ports§ 22.45 per cent of the total cargo traffic of the major ports in India is

handled by the Jawaharlal Nehru Port (JNPT) and Mumbai Port(MBPT)

§ 53 Minor ports

LAND§ Maharashtra is the second largest state in India, with an area of 30

Million Hectares (307,713 sq. km.)§ MIDC has one of the largest land banks in India, with ‘industrial land’

spanning over 84,000 hectares

ENERGY§ Gross installed capacity of power plants (excluding Central Sector) is

23,726.7 MW. The state has the highest Gross installed capacity(Utilities) at 10.62 per cent of the nation’s total installed capacity.

§ Gross Generation of power plants (excluding central sector) is at77,169.9 million KwH

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Infrastructure

Infrastructure

National Highway

Railway

MIDC Airstrips

Key Locations

International Airport

Proposed GasPipeline Network

Major Ports

To Goa

To Madhya PradeshTo Gujarat To Madhya Pradesh

Nanded

Solapur

Sangali

Nasik

Dhule

Wardha

Jalna

Sindhudurg

To Telangana

ToChhattisgarh

To Karnataka

To Goa

Amravati

Osmanabad

LaturBeed

Gadchiroli

Gondia

Gangapur

·

Sinnar

Rajgurunagar

Dighi

Shirdi

Karad

Shirpur

To Telangana

Ozhar

BaramatiPhaltan

Akola

JalgaonNagpur

Bhandara

YavatmalChandrapur

Kolhapur

Ratnagiri

Satara

Aurangabad

Ahmednagar

Thane

Mumbai

Pune

Raigarh

Juhu

Domestic Airports

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IT and ITeS Sector in India

§ India’s technology and BPM sector (including hardware) is estimated to have generated INR 6.48 Lakh Crore (USD108 billion) in revenue during FY13compared to USD100.9 billion in FY12, implying a growth rate of 7.4 per cent

§ The contribution of the IT sector to India’s GDP rose to approximately 8 per cent in FY13 from 1.2 per cent in FY98.

§ Total exports from the IT-BPM sector (excluding hardware) are estimated at USD 76 billion during FY13; the industry rose at a CAGR of 13.1 per centduring FY08-13E despite weak global economic growth scenario. Export of IT services has been the major contributor, accounting for 57.9 per cent of totalIT exports (excluding hardware) BPM accounted for 23.5 per cent of total IT exports during FY13

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22 22 24 29 32 32

41 47 5059

69 76

0

20

40

60

80

100

120

2008 2009 2010 2011 2012 2013E

Market size of IT industry in India (USD billion)

Domestic Export

22.2 25.8 27.3 33.5 39.9 43.99.9

11.7 12.414.1

15.917.8

8.810 10.4

11.413

14.1

0

10

20

30

40

50

60

70

80

2008 2009 2010 2011 2012 2013E

Growth in export revenue (USD billion)

IT Services BPM S/W Products and Engg. Services

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IT and ITeS Sector in MaharashtraMagneticMaharashtra


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Maharashtra IT Industry has been historically the leader in receiving FDI Projects (762) and highest FDI investment INR 12,765 Crore(August, 1991 to March, 2012)

Maharashtra IT sector is one of the top notch sector in the state with maximum thrust, development and investment§ As a proportion of national GDP, revenues from the IT & ITeS sector in Maharashtra grew to around 7.5 per cent over 2011-12 from 1.2 per cent during

1997-98.

§ Over 2011-12, Maharashtra accounted for around 23.2 per cent of the country’s software exports (made by registered units through STPI). Softwareexports are estimated to be at around USD 7.6 billion during 2011-12.

§ The Government of Maharashtra is focusing on providing IT-related infrastructure, fiscal incentives to IT units and an institutional framework for the ITsector.

§ Maharashtra has 37 public IT parks established by MIDC and CIDCO. A total of 479 private IT parks have been approved in the state, of which 122 arefunctional with an investment of USD 499.3 million, thereby creating employment of about 3,20,000 people (0.32 million).

§ The remaining 357 IT parks, with a proposed investment of INR 13.2 Lakh Crore (USD 2,208 million), have been given Letters of Intent, and are expectedto generate 16,00,000 (1.6 million) employment opportunities.

§ The prime IT/ITeS clusters are Greater Mumbai, Pune, Thane, and Nasik.

§ Pune is the leader in business process outsourcing services.Key Mega IT Projects in Maharashtra

Company Investment (INR Cr.) Employment generated

Mahindra British Telecom Ltd. 100 5000

TCS Ltd. 500 NA

Satyam Computer Services Ltd. 100 500

IT and ITeS HubsIn Maharashtra

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PUNE

AURANGABADNAGPUR

MUMBAI

IT / ITES HUBS

THANE

NASHIK

EMERGING IT /ITES HUBS

• SantaCruz ElectronicsExportPromotion Zone (SEEPZ)Mumbai

• Marol IT & Industrial Park ,Mumbai

• Samrudhi Venture Park MIDC,Mumbai

• Millennium Business ParkMahape, Dist-Thane

• Millennium Business Park (Phase-II) Mahape, Thane

• Electronics Zone TTC, Mahape,Dist-Thane

• Wagale Estate, Thane Thane• Airoli Knowledge Park Airoli,

TTC Thane• Talawade Software Technology

Park Talawade, Pune• Pune Infotech Park Hinjawadi,• Kharadi Knowledge Park, Pune• Pune Infotech Park (Phase II)

Hinjawadi, Pune• Software Technology Park Sadar,

Nagpur• Software Technology Park

Chikalthana/Waluj (MIDC)

• Parsodi IT Park, Nagpur• Ambad IT Park Ambad,• Kolhapur IT Park Kolhapur• IT Park Latur• Software Technology Park

Solapur• IT Park Sangli Sangli• IT Park, Ahmadnager• IT Park, Satara• IT Park Amravati Amravati• Pune Infotech Park, (Rajiv Gandhi

Infotech Park) ( Phase-III)Hinjawadi, Pune

• Ambarnath IT Park AmbarnathIndustrial, Thane

• Butibori Industrial Park Nagpur• Ambad IT Park Ambad – Nashik• Software Acknowledge Park

Sadar-Nagpur• Information Technology Park-

Solapur Chincholi Solapur• Butibori Public IT Park No1

Butibori, Nagpur• Latur Public IT Park Latur• Butibori Industrial Park,Nagpur

32D

EV

ELO

PED

MID

CIT

PAR

KS

Key Growth DriversMagneticMaharashtra


IndustrialInfrastructure

Policy Support

Rising ExportOpportunities

Doing BusinessSupport

IT and ITeSSector in

Maharashtra

Strong Talent Pool

SocialInfrastructure

Access to ForeignMarkets

Strong DomesticDemand

Strategic Location

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Human Capital

DEDICATED INSTITUTIONSCentre for Development of Advance Computing(C-DAC)§ Centre for Development of Advanced Computing (C-DAC) is the

premier R&D organization of the Department of Electronics andInformation Technology (DeitY), (Ministry of Communications &Information Technology ) for carrying out R&D in IT, Electronics andassociated areas.

§ C-DAC is a premier third party R&D organization in IT&E (InformationTechnologies and Electronics) in the country working on strengtheningnational technological capabilities in the context of global developmentsin the field and responding to change in the market need in selectedfoundation areas.

§ As an institution for high-end Research and Development (R&D), C-DAC has been at the forefront of the Information Technology (IT)revolution, constantly building capacities in emerging/enablingtechnologies and innovating and leveraging its expertise, caliber, skillsets to develop and deploy IT products and solutions for differentsectors of the economy

SKILLED WORKFORCE§ The state has a literacy rate of 82.34 per cent with a large base of

skilled and industrial labour.§ The state has a total of 2298 technical institutions with an intake

capacity of 4,49,121. It also houses 781 ITIs (Industrial Traininginstitutes) with an intake capacity of 1,17,747.

§ The state has 20 government universities. In addition to these, thereare 21 deemed universities in the State.

§ The state is home to some of the most reputed national R&Dinstitutes, viz., the Centre for Development of Advanced Computing(C-DAC), the Bhabha Atomic Research Centre, the NationalEnvironmental Engineering Research Institute, the National ChemicalLaboratories and the Tata Institute of Fundamental Research. One ofthe well-known Indian Institutes of Technology (IITs) is located inMumbai.

§ Pune is also an important education hub of India, often referred to asthe ‘Oxford of the East’.

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Policy SupportMagneticMaharashtra


TechnologyUpgradation Subsidy

Interest Subsidy Stamp DutyExemption

VAT + CSTAbatement

Electricity DutyExemption

Cleaner ProductionIncentives

Water EnergySubsidy

Water conservationIncentives

Royalty Exemption

Fixed Capital Investment Employment Location

DETERMINING FACTORS

Maharashtra Industrial Policy 2013-18FISCAL INCENTIVE BASKET

Under the state's new Industrial Policy 2013, Mega and Ultra Mega projects can qualify for fiscal incentives upto 100 per cent of the fixed capital investment.Moreover, a 10 per cent additional incentive on top of the above incentives is provided by the state if the project creates double the employment required forthe eligibility.

Maharashtra IT ITeS Policy 2009

§ Additional floor space index for IT parks and recreational, residential and other support facilities would be provided. Eligible IT-ITeS units covered under thePackage Scheme of Incentives (PSI) would be exempted from the payment of electricity duty. IT units would be supplied with power at industrial rates.

§ Property tax shall be levied on IT/ITeS units at par with residential rates. VAT on the sale of IT products would be generally charged at a minimum floor rate. 13

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Key Players

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Industrial PresenceMagneticMaharashtra


IT Services & Software productsand engineering services

Business Process Management(BPM)

Hardware Manufacturing

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Growth StoriesMagneticMaharashtra


Infosys Technologies Ltd.§ Infosys is a well-known IT giant with development centres across India. In

2012-13, it earned revenues of INR 44.4 Thousand Crores (USD 7.40 billion).

§ Infosys is one of the largest employers in the IT sector in Maharashtra.

§ Infosys began its operations in Pune in 1996 and moved to a 25 acre campus atRajeev Gandhi Tech Park in 1999. This campus has a built-up area of 5.9 lakhsq. ft. with seating capacity for 3,750 employees. Infosys has invested INR 220crore in this campus and the current annual turnover from this developmentcenter is INR 1,086 crore.

§ The company’s second campus in Pune is situated on 114 acres, with a built-uparea of 62.05 lakh sq. ft. with seating capacity for 33,000 employees. Infosys hasinvested INR 1,800 crore in the campus and the current annual turnover fromthis development center is INR 7,075 crore.

§ Infosys Pune complex is the largest facility worldwide for Infosys

§ The state generates a majority of its revenues from the US and Europe

Infosys’ facility at Pune

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Contact Us

Shri. Bhushan Gagrani (IAS)Chief Executive Officer - MIDCTel No : 022-26870800, 22616547

Fax No : 022-26871587Email : [email protected]

Dr. P. Anbalagan (IAS)Joint Chief Executive Officer - MIDC

Tel : 022-26871462Fax : 022-26870026

Email: [email protected]

Shri. Yuvraj PomanDy. Chief Executive Officer - II

Tel : 022-26870142 ; Fax : 022-26871604Email: [email protected]

Head OfficeMaharashtra Industrial Development Corporation

Udyog Sarathi, Mahakali Caves Road,Andheri(E), Mumbai-400 093

DisclaimerMaharashtra Industrial Development Corporation (“MIDC”) has engaged Ernst & Young LLP. (“EY”) to prepare this document and the same has been prepared by EY in consultation with MIDC. This document is for information purposes only. While due care has been takenduring the compilation of this document to ensure that the information is accurate to the best of EY knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.EY does not assume any liability or responsibility to any person for the outcome of decisions taken by such person as a result of any reliance placed on this presentation. EY shall not be liable for any direct or indirect damages that may arise due to any act or omission on thepart of the user due to any reliance placed or guidance taken from any portion of this presentation.© 2014All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by MIDC and Ernst & Young. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronicmeans and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of MIDC.

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