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Transcript of Search - November - Investment Destination 2012
oundation defines the shape and ultimately, success—be it of a person, company, state, nation or a ‘building’ (construction) itself! Talking about foundations, November is a very special month for the state of Karnataka; on November 1,1973, the state came into being, and hence, is the Foundation Day.
Being the true partners of the industry, we present and dedicate this special edition of Investment Destination Karnataka to each individual, each company, each association and
each policy maker, who has contributed towards making the foundation of the state of Karnataka so strong that today it is one of the most stable states, having a robust business and trade environment along with a conducive ecosystem for the next generation to achieve their ambitions.
Karnataka has always been at the forefront of industrial growth in India. With its inherent capabilities coupled with its enterprising citizens, Karnataka provides the ideal choice for investment opportunities. Hon’ble Minister for Industries Shri Murugesh Nirani is not making a statement, but narrating a reality when he says that ‘Karnataka offers what it takes for companies and industries to grow.’ He informs, “In the recently concluded Global Investors Meet in June 2012, we were able to receive investment commitments to the tune of `7.2 lakh crore. (Do read his exclusive interview in this edition).
No wonder then that manufacturing companies are queuing up to put the money where the progress is; like Tata Steel is pledging an investment of `30,000 crore to set up a steel plant in Haveri district. Also, BMM Ispat, the second largest steel maker in Karnataka, will be going in for capacity expansion with an investment of `6,700 crore in Hospet in Bellary district. Then again, Welspun Energy will be investing `5,675 crore in developing two wind power projects in Bijapur, Chitradurga & Belgaum districts over the next five years. These are but a few mentions of the long list of investments being attracted by Karnataka.
The edge of Karnataka is of course the knowledge-based economy that it is along with having attained a well-rounded growth. It is driving domestic growth, crafting careers and creating wealth through a potent mix of resource-based, skill-based, technology-based and knowledge-based products and services. The state has a living tradition of employing technology to trace a steady growth curve across various sectors of the economy.
In these continuously altering economic realities, the state has also been responding quickly to the dynamic economic conditions, changing demands, changing technologies and continuously facilitating the industries to upgrade their technology, products and R&D to sustain the rising competition.
The result of this focus on knowledge and value creation is the envious figures that the state has achieved, like the GSDP of the state for 2011–12 is ̀ 4,65,552 crore at current prices contributing close to 5% of the country’s GDP. The state achieved a growth rate of 5.5% in its GSDP in the same year. And the government’s vision is to double the GDP of the state by 2020.
As we salute the success of Karnataka, SEARCH wishes all its readers a very special Karnataka Rajyothsova. Keep the flag of Karnataka flying high!
FFLOURISHING ON STRONG FOUNDATIONS
Archana [email protected]
5EDITORIALSEARCH - Supplement November 2012
EDITORIAL5
CONTENTS
SEZs & CLUSTERSBasking In The Glory Of Industrialisation
16
R&D AND INNOVATION HOTSPOTLeading From The Front
12
FIRSTS FOR KARNATAKABoosting India’s Growth Prospects
8
SUCCESS SECRETSSUCCESS SECRETS1010
AVIATION AVENUESKarnataka: The Budding Aerospace Hub
20
GLOBAL INVESTORS MEET 2012 The GIMnastics Of Karnataka’s Growth
17
INVESTMENTSFostering Karnataka’s Industrial Progress
24PRODUCT UPDATE31
‘Our Vision Is To Double The GDP Of The State By 2020’Murugesh R Nirani,Hon’ble Minister for Large- and Medium-scale Industries, Government of Karnataka
INDUSTRY WISH LISTInvestors’ Confi dence Gains Momentum27
‘Karnataka Will Remain The Knowledge Hub Of The Country’SA Mohan,CEO, Maini Materials Movement
29
‘Karnataka’s Image Will Soon Change From Being An IT Hub To An Automotive Hub’Viraj Naidu,MD, Disa India
30
ADVERTISERS’ & PRODUCT INDEXAlphabetical Listing Of Products Presented In The Issue
34
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eg
Vision & Mission
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26
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8 FIRSTS FOR KARNATAKA SEARCH - Supplement November 2012
Karnataka leads the country in several fi elds, such as Information Technology (IT), nanotechnology and biotechnology, apart from being home to some of the largest public sector companies in India, such as Hindustan
Aeronautics Ltd. The state is a bright spot in today’s stagnant economy. It will further strengthen its pole position in the country with the various developments that are taking place for the fi rst time.
Boosting India’s growth prospects
Bengaluru has done it again; it will have India’s first
Information Technology Investment Region (ITIR)
for knowledge-based industries, including software and
hardware firms, with the entire supply chain.
The ITIR is projected to attract global investments to
the tune of `2 trillion as well as to create a million direct
jobs over the next 10 years.
A high-powered committee of the Ministry of
Communications and Information Technology has
approved the ITIR proposal and forwarded it to the Union
Cabinet for clearance.
The integrated region will be built under the Public
Private Partnership (PPP) model with joint investment by
the central and state governments near the international
airport in Bengaluru.
The State Government is planning to float a global
tender to select a developer for building the ITIR in
area spread over nearly 10,200 acre in two phases. Land
measuring 2,080 acre has already been identified for the
first phase and preliminary notification issued to farmers
for acquisition at the prevalent market rate.
The ‘knowledge park’ will be a self-sustainable
integrated investment region for setting up software firms,
back offices and a hardware park for electronics cluster,
including chip designing and manufacturing units, with
world-class infrastructure facilities.
The region will also have a residential township, an
airstrip, high-speed rail network, shopping plaza, hospitals,
schools & recreational facilities for the communities
residing there.
Bengaluru is all set to become India’s first and biggest
aerospace industry hub in the next five years. The
State Government will set up an aerospace park with
an investment of $10 billion near the Bengaluru
International Airport.
The state will soon announce its Aerospace Policy—the
first such policy by any state in India. MN Vidyashankar,
Principal Secretary for Industries and Commerce,
Karnataka Government, recently said, “Karnataka will
have the world’s biggest knowledge hub in Chitradurga.
Nearly 2,000 acre of land is being provided to IISc;
1,500 acre to ISRO; 2,000 acre to DRDO and 50 acre to
National Aeronautics in Chitradurga. It will also have a
manufacturing zone.”
The foundation stone of IFCI Financial City, India’s first
financial city, was recently laid by the former Hon’ble
Union Finance Minister Pranab Mukherjee, at Hardware
Park, Bagalur Road, Bengaluru.
The State Government has allotted 50 acre of land near
Bengaluru airport to IFCI Infrastructure Development
Ltd (IIDL) for this project, which is to be completed
in three years. IIDL is developing premium urban
infrastructure at the site in association with leading banks
and institutions. The project is being developed to serve as
a model for regional financial centres across the country.
IFCI Financial City at Bengaluru, which is
being developed at an investment of over `1,000
crore, would be a regional financial hub, thus further
strengthening Bengaluru’s pre-eminence in the national
economy.
The layout of the city is based on the Zen geomancy
concept with effective circulation and activity patterns.
Bengaluru to Get India’s First IT Investment Region
Karnataka to Set Up Aerospace Park with $10-billion Investment
IIDL Brings India’s First Financial City to Bengaluru
9FIRSTS FOR KARNATAKASEARCH - Supplement November 2012
Karnataka’s Kolar district houses India’s first 3-MW
solar power plant. Hon’ble Union Minister for New
and Renewable Energy Farooq Abdullah had recently
inaugurated the power plant.
While unveiling the plant at Yelesandra village
in Bangarpet taluk of the district, about 100 km from
Bengaluru, Abdullah said, “Solar energy is an inexhaustible
source of energy. It is one of the most promising and
non-conventional energy resources. Unlike fossil fuels and
nuclear power, it is also an environmentally clean source
of energy.”
The photovoltaic cell plant was built in 10 months
by Hyderabad-based Titan Energy Systems Ltd for the
state-run Karnataka Power Corporation Ltd (KPCL) at
a cost of `59 crore. It will generate four million units of
power per year.
The plant is spread over 15 acre of land and
consists of 13,500 solar panels to absorb sunlight as the
source of energy and convert it into electricity, which
is then transmitted to the control room through cables.
The Direct Current (DC) is again converted into
Alternating Current (AC) through 12 250-KW inverters
in the control room.
Though the solar power plant is clean and eco-
friendly, the upfront cost per MW is high at `15 crore,
as its panels are built with silica imported from the
photovoltaic technology leader Suniva, Inc, based in
Atlanta, the US.
To minimise the transmission and distribution losses,
KPCL will supply the solar power to nearly 500 pump sets
for use in the farmlands around the plant, which are till
now deprived of any irrigation facility.
The tail-end grid-connected solar photovoltaic plant is
a boon to farmers as it provides electricity to agricultural
activities during the daytime. The plant has been built to
operate for 25 years, with 10% degradation after 10 years
and 20% after 20 years.
When sunlight is diminished by an overcast sky, the
heat generated by the sun during the day is absorbed by
the solar panels through the thermal process.
The energy generated from the panels will vary from
4,000 units to 18,000 units per day depending on the
sunlight received through the seasons. KPCL is also
building two more solar plants with 3-MW capacity at
Itnal in Chikodi taluk in Begalum district and Yapaladynni
in Raichur district of North Karnataka.
India’s first biofuel station is expected to be commissioned
at Biofuel Park Campus near Madenur village on
Bangalore-Mangalore NH 48 in Hassan district by this
year end.
According to a Memorandum of Understanding
(MoU) signed between Biofuel Task Force and
Bharat Petroleum Corporation Ltd (BPCL), the latter
would set up the station at the park
and sell biodiesel. For every 10 litre
of conventional diesel, 0.5 litre of biodiesel has to be
added and supplied to the vehicles.
The University of Agricultural Sciences had set up
the park near Madenur in 2006 to popularise the use
of biofuel by encouraging the farmers to grow Neem
(Azadirachta Indica), Simarouba Glauca, Hippe, Honge
(Millettia Pinnata) and Surahomme.
If all goes well, Karnataka will soon be housing India’s first solar
city. Recently, the state’s Hon’ble Chief Minister Jagadish
Shettar, said that Karnataka is aiming to add 200 MW of
solar energy by 2016. He added, “The state has a capacity
ranging between 4.5 and 7 kWh per sqm. We are looking at
establishing the country’s first solar city in Karnataka.
We shall adopt the Gujarat model of using irrigation canals
to install solar panels.”
India’s First 3-MW Solar Plant in Karnataka
Hassan to get India’s First Biofuel Station
Karnataka May Get Country’s First Solar City
Compiled by Nishi Rath
10 SUCCESS SECRETS SEARCH - Supplement November 2012
NISHI RATH
Karnataka is one of the fastest growing states of India. It has a vast and diversifi ed sectoral base. Known as the Silicon Valley of India, the state’s entrepreneurial spirit in innovations and R&D has been recognised all over the world. Its rich natural resources, proactive government, talented workforce and a strong economy have propelled the state on the path to become a preferred investment destination of the country. Narrating a brief growth story of this ‘Knowledge Hub’...
arnataka is one of India’s
leading industrial states,
contributing almost
8% to the national
manufacturing income.
While the state boasts of being the
aerospace hub of the country operating
on cutting-edge engineering and
IT capabilities, its garment sector,
dominated by small units, contributes
20% to the national output.
Being the eighth largest state of
India, Karnataka has contributed
significantly to the country’s rising
success. The state economy has a
sound base in its rich resources,
manufacturing expertise and proactive
government that have kept its growth
going in tough times.
THE KNOWLEDGE HUB Karnataka is also home to an
impressive number of education and
skill-development institutes and
organisations. It has one of the highest
number of medical colleges, third-
highest number of engineering colleges
and the highest number of industrial
training institutes in the country. It is
also home to several premier research
institutes.
The state tops the country when
it comes to labour supply ecosystem,
providing access to a vast pool of
skilled manpower as well as research,
engineering and design capabilities
in all branches of frontier sciences.
The state is rightly known as the
‘Knowledge Hub of Asia’.
SECTORS LEADING THE GROWTH STORYAutomobile and auto component:
The southern state is a hub for the
automotive industry with the presence
of major companies such as Toyota
Kirloskar, Volvo, TVS Motors, Tata
Marcopolo, L&T Komatsu, Mahindra
Reva, BOSCH, Siemens and JK Tyres.
The industrial valve cluster and auto
component cluster make Karnataka
the preferred investment destination
for automotive players.
Aerospace: Karnataka is the preferred
choice for global players in the
aerospace research and development.
Extensive experience and inherent
competencies in aerospace make
the state the producer of more than
a quarter of India’s aircraft and
spacecraft. Global giants such as
Boeing Research & Technology Centre
and Airbus Engineering Centre have
made Karnataka their base. Karnataka
also boasts of having India’s top R&D
centres in aerospace & defence, the
Indian Space Research Organisation
(ISRO) and the Defence Research and
Development Organisation (DRDO).
Chemicals & petrochemicals: Karnataka
is fast positioning itself as one of the
major growth centres of the chemical
industry with the presence of around
500 companies, including leading
players like MRPL, BASF, Mangalore
K
11SUCCESS SECRETS SEARCH - Supplement November 2012
Chemicals & Fertilizers and United
Phosphorus. It can be said chemicals
& petrochemicals is one of the growing
sectors of Karnataka and is set to gain
momentum in the next few years.
Mangalore Refinery and
Petrochemicals Ltd (MRPL) is the
state’s leading player, and public-sector
refinery. The presence of a dedicated
petrochemical SEZ in Mangalore will
further catalyse the growth.
Energy: Asia’s first major hydroelectric
power generating station was set up
in Karnataka in 1902. At present,
Karnataka is the third-largest
generator of renewable energy in India.
It also has the highest wind energy
potential in the country at 12,950
MW. Thermal and hydropower have
been the main sources of electricity
in the state. At present, renewable
sources are contributing to nearly 24%
of the state’s installed capacity. The
renewable energy potential is estimated
at 28 GW, primarily from wind, small
hydropower units, co-generation and
biomass sectors. Until now, 2,106
MW of wind energy, 88.5 MW
of biomass energy, 948.7 MW of
bagasse co-generation, 646 MW small
hydropower generation and 14 MW
of solar energy have been explored,
implying the fact that a large potential
remains to be tapped. Further, the
government has allotted projects of
17,278 MW, amounting to nearly
60% of the full potential. In addition,
the Renewable Energy Policy 2009–14
and Solar Policy 2011–16 offer various
attractive incentives to the private
players.
Information Technology (IT): Around
80% of global IT companies have
based their India operations and R&D
centres in Bengaluru. Bengaluru is the
fourth-largest technology cluster in
the world after Silicon Valley, Boston
and London. The state capital also
boasts of the highest number of R&D
centres in India. As part of the Union
Government’s Special Investment
Region Scheme, the IT Investment
Region (ITIR) Scheme has come
across as a much-needed power
booster for the industry. The mega
project, which is expected to come up
in Devanahalli, requires 10,200 acre of
land and the State Government expects
`98,000 crore investments to come in
a phased manner. Under the scheme,
the Union Government will provide
grants for developing infrastructure
such as electricity, roads, sewerage and
water supply in the Special Investment
Regions (SIRs). While these regions
themselves cannot avail tax benefits,
SEZs within them can.
INDUSTRY-FRIENDLY POLICIES The State Government has put in
place the all-new Karnataka State
Industrial Policy 2009–14, with various
improvements over the previous
one of 2006–11. One main policy
measure intended to smoothen the
path for investors is the exclusive land
acquisition policy and the development
of a Land Bank—each district will have
2,000–3,000 acre that will be acquired
by the Karnataka Industries Areas
Development Board for industrial
development. The Suvarna Karnataka
Development Corridor Initiative has
also been planned to connect cities
in all districts through a network of
highways, with cluster development in
designated zones.
This is not all; sector-specific
industrial zones and SEZs have been
identified that match the natural
resources and capabilities of a district
with industry requirements. The
policy will lay special focus on skill
development in order to enhance the
generation of technical manpower
and ensure that Karnataka’s lead in
providing skilled workforce is sustained.
The policy also focusses on the
creation of world-class infrastructure
through investments in power, roads,
water, warehouse and logistics facilities
and connectivity through rails & ports,
among others have been planned to
facilitate the entry of investors.
ON A GLORIOUS GROWTH PATH Karnataka is well set to lead the
nation, showing the way through
effective public private partnership. For
investors in any field, the two primary
inputs that are vital for production
are land and labour; Karnataka leads
the country in both. Karnataka’s
new Industrial Policy 2009–14 has
provided for 50,000 acre of land across
five industrial corridors to facilitate
project implementation, especially for
large projects facing land acquisition
issues in other states.
Though Karnataka at the beginning
represented off-shoring of low-end
services in the BPO sector, the latent
strengths of the state have made it the
first-stop destination for cutting-edge
technology research and manufacturing
centres of global majors.
(With inputs from the Government of
Karnataka)
Largest biotechnology hub of India: The state hosts 195 of India’s 340 biotech companies
Largest software exporter of the country–$21.95 billion (FY2010–11)
Largest number of medical (114) and engineering (187) institutes in India
Largest producer of coffee and cocoa in the country
Highest wind energy potential in India at 12,950 MW
Leading provider in healthcare with world-class facilities and super-specialty hospitals
Producer of more than a quarter of India’s aircraft and spacecraft
First Aircraft Manufacturing Unit First Space Research Centre First Institute of Biotech &
Bioinformatics First Institute of Information
Technology First International Technology
Park First Industrial Policy
LEADING THE WAY
12 R&D AND INNOVATION HOTSPOT SEARCH - Supplement November 2012
he year 2011, was an
enthusiastic year for the
R&D sector globally.
While R&D investments
grew at a rate of 8.2%,
the global net sales were surprisingly
better at 13.55%. The contribution
of North America, the EU and Asia-
Pacific in R&D were 36%, 34% and
7%, respectively. Certainly Asia’s
contribution is not satisfactory, if not
frustrating, owing to its better growth
rate. Coming to India, with 2,20,000
R&D people, it witnesses the presence
of one-third of the global Top 1,000
R&D players, who have already
invested $7–8 billion in India for the
same. Bengaluru, known for its R&D
hub, shares 50% of those investments.
The major R&D investments, here
have been done in the sectors such
as IT, semiconductor, electrical/
electronic equipment, biotechnology,
drug & pharma, telecom, aerospace
and automotive. The first MNCs’
R&D centre started in 1984 with
Texas Instruments (TI) setting up its
first R&D centre in Bengaluru— much
before China, when Motorola began
an R&D trend offshoring there in the
1990s. Bengaluru is leveraged with 50%
of the total foreign R&D centres in
India compared to the 17.3% of DNCR
and 11.3% of Mumbai.
STRONG KNOWLEDGE SUPPLY CHAINA better knowledge supply chain
maintains the right balance between
the two strategies, viz., knowledge
augmenting and knowledge exploiting.
Industries prefer knowledge
augmenting as basic resource for their
R&D centre establishment. According
to a case study by IIMA team, “It’s
not like North India cannot provide
knowledge augmenting; in fact,
DNCR provides better skilled brain
availability than South India, but their
higher rate of brain drain makes the
task of knowledge augmenting more
difficult and unstable, which is not
seen in the south.” Viraj Naidu, MD,
Disa India, informs, “Investments in
R&D project in Karnataka, particularly
in and around Bengaluru, have been
huge. This, in a way, is directly related
to IT set-ups—a clear indicator of how
the state is the ‘best’ in comparison to
the rest of the country.”
FDI IN R&DFDI inflows are the biggest
components of external financing for
developing countries. Since 1991,
India, in order to better compete
on the international FDI front, has
undertaken reforms to liberalise its
foreign trade policy and simplify its
FDI procedures, encouraging MNCs
to have their own or supported R&D
centres in India to promote localised
technology and hence, their products.
As a result, Microsoft, Intel, IBM,
Cisco Systems, Adobe and Oracle
have established their R&D centres in
Bengaluru along with the electronics
giants like Hewlett Packard, Dell,
GE, Texas Instruments and so on.
Even though as per the patents and
investments, PSUs or government-
associated universities or research
institutes still hold the lead position,
foreign companies’ R&D centres and
investments in the state have presently
risen from 14% (2002) to 38%. The
curve is further expected to continue to
rise with the same magnitude.
Why has the state attracted more
than 50% of FDI in the R&D
sector? Ram Kerur, MD, Sunlux
Technologies Pvt Ltd & President,
ISA Bangalore, explains, “The local IT
and engineering companies provide a
SUPRITA ANUPAM
Being the Silicon Valley of India, Bengaluru along with its outskirts has pioneered itself as the R&D hub of not only India, but also the Asia Pacifi c. The state, accounting for 40% of the software R&D exports, compared to the whole country is the biggest biotechnology and aerospace R&D hub in India.
T
Leading fromLeading fromthe Frontthe Front
14 R&D AND INNOVATION HOTSPOT SEARCH - Supplement November 2012
good ecosystem for such centres apart
from the favourable weather conditions
and good talent. The cosmopolitan
offers social acceptance and provides a
safe environment; these are the major
factors that attract the best talent in
India and from abroad. Furthermore,
the existing public sectors in different
domains (from aircraft to electronics)
have provided a good training ground
for building talent.”
Zahid Hussain, VP – Engineering,
Brocade, avers, “In Bengaluru, we
are able to find outstanding
engineering talent with the right
level of experience and expertise
to develop our next-generation
technologies; together with developers
at existing Brocade R&D centres
located throughout North America,
Israel and China. The Bengaluru
team will drive the development of
new technology solutions designed
to enable companies to connect and
manage data more efficiently and
reliably.”
R&D SECTORSThe major investments have been
proposed or signed under MoU are
in aerospace, biotechnogy, IT and
machine tools. Aside from Bengaluru,
the cities which have been proposed
to have R&D parks are Mangalore,
Dakshin Kannada, Hubli, Dharwad,
Hassan, Uttar Kannada, Belgaum,
Devangere, Chikmanglur, Gulbarg,
Bellary, Mysore and Udupi. Let’s see
R&D developments and investments
in other sectors having significant
presence in the state…
Aerospace and AvionicsThe State Government has proposed
a Technology Innovation Centre for
aerospace at the Bangalore Aerospace
Park to provide R&D support,
particularly to SMEs in this sector.
The government plans to approach
majors like ISRO, USIBC, NAL,
EADS, Honeywell and others to
become stakeholders in the Technology
Innovation Centre. With regards to the
State Government’s policy to promote
R&D in avionics, Maheshwar Rao,
IAS, Commissioner of Industries,
Government of Karnataka, explains,
“The Government of Karnataka has
recognised the aerospace and avionic
sector as one of the thrust sectors
for industrial investment promotion
in Karnataka. The state has an ideal
ecosystem for this sector and we want
to cash in on this not only to sustain
Karnataka’s position as the country’s
aviation hub, but also to encourage and
support MSMEs in the sector.”
So far, Hindustan Aeronautics
Ltd, National Aerospace Laboratories,
Indian Space Research Organisation,
Defence Research and Development
Organisation, Aeronautics Development
Authority, Aeronautics Development
Establishment and Center for Artificial
Intelligence & Robotics have been the
centre of R&D in Avionics, but as
recommended by the Joint Task Force,
the government is also planning to set
up an aerospace university in the near
future to cater to the human resources
for the aviation sector.
AutomobileWith Tata Motors having their R&D
centre in Dharwad, Toyota, MICO,
Reva, and Volvo in Bengaluru, TVS in
Hosur & Mysore, it is too early to say
that the state will assume Chennai’s
position of ‘Detroit of India’, but surely
the state will create a niche for itself
in the automobile sector. Meanwhile,
GM also plans to invest $60 million
to set up an R&D centre in Bengaluru
and Honda & Mitsubishi have plans to
come up with big investments as well.
BiotechnologyWith an investment of $104 million,
Alexandria Knowledge Park has been
developed based on international-
standard biotech parks. Both
Alexandria Knowledge Park and
Bangalore Helix (being developed)
has made the city and state the No. 1
R&D and biotechnology hub.
The sectors lagging in the state
such as agriculture, F&V, renewable
energy/power have not shared the same
competition in their R&D division.
The innovation performance is measured by the Economist Intelligence Unit’s (EIU’s) innovation index, which is based on the country/state’s innovation output as measured by the number of patents granted by the patent offi ce, and innovation inputs, based on the Economist Intelligence Unit’s Business Environment Ranking (BER) model. Following are the few strengths and weaknesses of the state when talked about the innovation performance by the state: Strength #1: A Network of Government-supported R&D Laboratories with Expertise in a Variety of DisciplinesWeakness #1: Lack of Dynamism of the Government R&D SystemStrength #2: Large Education Capacity with Several World-class InstitutionsWeakness #2: Quality of the Higher Education SystemStrength #3: Large Private Sector Industrial BaseWeakness #3: Absence of a Vibrant High-technology SectorStrength #4: Government Recognition of the Importance of Industrial R&DWeakness #4: Limited Impact of Government Support ProgrammesStrength #5: Infl uence of Scientists in Policy-makingWeakness #5: The Science-Technology DivideStrength #6: Changes to Patent Laws & Increased Foreign Direct Investment in R&DWeakness #6: Low Magnitude of Spillovers of Foreign R&D InvestmentWeakness #7: Other Barriers to Innovation (Corruption/slow infra projects)
With inputs from Rishikesha T Krishnan, Professor, Corporate Strategy & Policy Area, Indian Institute of Management (IIM), Bengaluru
STRENGTHS & WEAKNESSES OF THE INNOVATION SYSTEM
16 SEZs & CLUSTERS SEARCH - Supplement November 2012
NISHI RATH
Basking in the GloryBasking in the Glory of Industrialisation
hile industrial activity
is spread across all the
districts in Karnataka,
there are some that have
shown immense potential
in the recent times. These include:
Yadgir: The emerging business
destination is around 426 km away
from Bengaluru. What was once known
as one of the most backward districts,
is now become one of the most sought
after business districts in the state.
According to Hon’ble Karnataka Small
Scale Industries Minister, Narsimha
Naik, there are two major factors
that have encouraged investors to
flock to Yadgir. First, the government
has declared huge tax incentives like
investment subsidy and sales tax
exemption, among others, for those
who set up their base in this district.
Secondly, Yadgir’s is strategically
located, 160 km from River Krishna
and River Bhima also runs through the
district. However, the land is largely
not irrigated, and hence, there is plenty
of space for setting up large industries.
What can be seen as an added advantage
is the availability of cheap labour.
During 2001 and 2012, around 11
small industries have been set up in
the district entailing an investment of
`377 crore. Between 2010 and 2012,
at least 41 new industrial units had
proposed to come up in the district
at a cumulative investment between
`20,000crore and `30,000 crore.
Raichur: Located 200 km from
Hyderabad, Raichur presents potential
for setting up industries across the
district. Raichur is located in the
Eastern part of Karnataka and is
divided into five talukas—Devadurga,
Lingasugur, Manvi, Raichur and
Sindhanur. The district is considered
an important commercial and industrial
centre. Famously known as the ‘Rice
Bowl of India’, it is also well known
for its agricultural and horticultural
produce. But, of late, the district has
become an emerging hub for cold
storage infrastructure. Sectors like steel
and mineral, food processing, building
materials, mechanical, mining and IT
have seen growth in this region. Some
of the prominent players who have made
their presence felt here include Mysore
Petrochemicals Ltd, Hutti Gold Mines
Company Ltd, Raichur Thermal Power
Corporation Ltd, Surana Industries Ltd
and Shilpa Medicare Ltd.
Shimoga: Majority of investments
in this region come from food &
beverages, engineering and mechanical
products. The foundry units in the
district manufacturing components
for automobile industry are known for
their quality. This growing industrial
district has been attracting companies
from IT/BT, food processing & agro,
automobile, general engineering and
steel sector.
Belgaum: It is the fourth largest city
in Karnataka and ranks second in
overall exports after Bengaluru. Known
as the foundry hub of Karnataka, it
has also emerged as an important
centre for manufacturing of heavy
machine tools. The district has got an
established trade centre for food grains,
sugarcane, cotton, tobacco, oilseed and
milk products. Belgaum has 33 large-
and medium-scale industries with an
aggregate investment of `2,850 in large-
and medium-scale industries and an
aggregate investment of `775.08 crore
in small-scale industries. According to
experts, it is also a fast emerging hub
for storage/cold storage infrastructure.
THE GLOBAL FACE OF INDIABrand Bengaluru has already become
synonymous with cost-effective and
quality solutions all over the world.
But there are other regions that are on
the verge of making it big. The state
economy has a sound base in its rich
resources, manufacturing expertise and
proactive government policies that
have kept the growth going in tough
times. The state indicates its ‘hunger’ to
achieve milestones in development and
promises there is more.
W
The state’s industrial profi le, in terms of growth in production, investment approvals, et al, is well-charted, from manufacturing units in various sectors, to district-wise distribution of industrial activity. Here’s taking a look at some of these regions that have seen huge growth in the last few years and have the potential to make it big in the future...
17GLOBAL INVESTORS MEET 2012SEARCH - Supplement November 2012
a r n a t a k a , s i n c e
liberalisation in 1991,
has been spearheading
the growth of the Indian
industry, particularly in
terms of high-tech industries, such as
electrical and electronics, Information
and Communication Technology
(ICT), biotechnology and, more recent,
in terms of nanotechnology. Industries
contributed 29.6% in the state’s GSDP
in 2010–11. The agriculture sector is
expected to grow by 5.9% in 2010–11,
as against 4.3% during 2009–10. After
a spectacular recovery from negative
growth rate of 2.2% in 2008–09 to a
positive growth rate of 9.3% in 2009–
10, the growth rate of the secondary
sector (comprising manufacturing,
construction and electricity, gas and
water supply) moved to 7% during
2010–11. A remarkable increase
in the tertiary sector from 3.7% in
2009–10 to 9.7% (especially in real
estate, ownership of dwellings and
business services from 2.1% to 8.9%)
in 2010–11 is a key driver of 8.2%
growth of GSDP in 2010–11, i.e.,
from `2,51,268 crore in 2009–10 to
`2,71,956 crore in 2010–11.
GIM FACTORGrowth needs to be supported in
numbers, during Global Investors
Meet (GIM) 2010—38 MoUs with
expected investments worth `44,152
crore were signed; some of which have
already been invested. GIM has been
the prime factor in making the state
No. 1 in the biotechnology sector.
GIM 2010 attracted investment
worth `59,081.8 crore through
15 projects in the pharmaceuticals
sector and `650 crore through two
projects in biotechnology. With GIM
focussing on almost all the major
sectors, viz., aerospace, automobile,
biotechnology, energy, gas & pipeline,
IT, infrastructure, food and beverage,
and so on, the state has attracted some
of the biggest global players such as
Arcelor Mittal Ltd, POSCO, HMFI
and Bharat Forge Ltd. However,
timely planning and execution are
very important to transform the
global interest into real investment.
Subrahmanya Kumar, Country
Manager, Tyrolit India Superabrasive
Tools, avers, “Political instability, delay
in planning and execution are affecting
the GIM success saga. A number of
investment promises made in 2010
has not seen light of day, but the
projects announced by Arcelor Mittal
and POSCO are yet to take off. So,
GIM alone cannot do much, it needs
practical and warm support from the
State Government as well.” According
to SA Mohan, CEO, Maini Materials
Movement Pvt Ltd, “The follow-on
meetings post GIM are crucial between
DEBARATI BASU & SUPRITA ANUPAM
The GiMnastics ofKarnataka’s Growth
Established in 2010, GIM has propelled the state industry and the infrastructure to some extent since then. GIM, despite criticism, has managed to revive the charted long-term development plan for Karnataka including its demography, economy, human development, sectoral composition of GSDP and other parameters. A report...
KHon’ble Minister for Large- and Medium-scale Industries, Government of Karnataka, Murugesh Nirani (extreme left) and other dignataries on the dias at the GIM 2012
18 GLOBAL INVESTORS MEET 2012 SEARCH - Supplement November 2012
the industry and the state to realise the
investments garnered during the event.
I am confident that all parties involved
will drive this in mutual interest.”
ALLURING GLOBAL ATTENTION: GIM 2012 AT A GLANCE The inundating growth of Karnataka
has brought it at the centre of global
attention. Amid the opportunities
that the state offers, GIM 2012—
the flagship event of the Karnataka
Government—magnified the potential
and attracted an investment of `7.6
lakh crore in just two days from all
corners of the globe.
GIM 2012 promised to open the
doors for the world to the land of
opportunities; that is precisely what
it did. The two-day expo saw the
participation of over 462 exhibitors
from more than 13 countries including
Japan, Germany, Mexico, Italy,
Canada, the UK and Taiwan. Over nine
states from India, including Madhya
Pradesh, Bihar, Rajasthan, Kerala,
Gujarat, Chhattisgarh and Jharkhand
also showed their enthusiasm to be
a part of the burgeoning growth of
Karnataka. Apart from 130 PSUs and
large enterprises, over 300 small and
micro enterprises also took part in this
mega event. The then Chief Minister
of Karnataka DV Sadananda Gowda,
while addressing the exhibitors, said,
“GIM has been organised as a focussed
endeavour to realise Karnataka’s vision
of achieving sustainable economic
development, increase in employment,
better livelihood, balanced regional
development and environmentally
sustainable long-term development,
as outlined in our Vision 2020. I am
happy to say that with the success
of GIM 2012, we are on the right
track. We look forward to strengthen
partnerships with our investors in our
mutual quest to achieve enhanced
and wide-ranging interactions and
initiatives in the future.”
The expo focussed on a wide range
of upcoming sectors like aerospace,
automobiles, biotechnology, chemicals
& petrochemicals, education, energy,
food processing, health, infrastructure,
IT, minerals, textiles and tourism.
Talking about the achievement
of the expo, Hon’ble Minister for
Large- and Medium-scale Industries,
Government of Karnataka, Murugesh
Nirani said, “Going by the tremendous
success of GIM 2012, we have proved
that Karnataka is the most preferred
destination not only in the country,
but also in the world.”
He added that the State Government
has launched innovative policies
under which, attractive incentives
across a wide variety of sectors have
been offered to investors to create
an enabling policy environment and
address the varied needs of industry
in the state. The government is also
putting in place policies to facilitate
investment in the state.
The draft policies that are ready
for release include Infrastructure
Bill, Special investment Region
Act, Karnataka State Housing
Policy, and other policies for
Automobile, Aerospace, Solar and
Pharma Sector.
By the end of the show, GIM 2012
wrapped up the edition by signing
730 MoUs across several sectors for
investments. With the investment
of over `7.6 lakh crore, the state has
generated the potential to offer more
than 15 lakh jobs. Along with this,
`1.68 lakh crore of investment was
received as registration of interest for
the infrastructure sector. The event
buzzed with the participation of over
40,000 visitors during the show.
MoUs/EoIs : (712) `6.58 lakh crore
Industry RoIs: (18) `30,000 crore SME MoUs: (6,800) `71,000
crore Infrastructure RoIs: (324) `1.68
lakh crore
INVESTMENT IN NUMBERS: GIM 2012
The two-day expo saw the participation of over 462 exhibitors from more than 13 countries.
The expo focussed on a wide range of upcoming sectors like aerospace, automobiles, biotechnology, chemicals & petrochemicals, education, etc.
20 AVIATION AVENUES SEARCH - Supplement November 2012
ith the establishment of
Hindustan Aeronautics
Ltd (HAL) in Bangalore
in 1940, Karnataka is
regarded as a pioneer in
the aerospace industry. The state is
positioned as an aerospace destination
due to the presence of numerous
aerospace companies and Public
Sector Units (PSUs) engaged in
manufacturing, design & development
and MRO. In addition, several
educational, scientific and technical
educational institutions are fostering
domain expertise in IT, engineering
and design skills that can be leveraged
by aerospace majors. Selected
advantages that Karnataka offers as a
hub for aerospace activities include:
Presence of large defence PSUs,
scientific and technical institutes
Deep aerospace expertise—a
network of 2,000 SMEs that do
niche subcontracting work for the
DPSUs
Information Technology (IT),
design and engineering expertise
Manufacturing expertise
Proximity to vendor base
Government support
Opportunity for related services like
ground handling, and the
manufacture of ground support
equipment
Other advantages regarding location,
excellent telecommunications
networks, etc.
INVESTMENT DESTINATION FOR AEROSPACE ACTIVITIESThe existing supply chain developed by
old-economy aerospace and engineering
firms, an investor-friendly government
with simplified procedures and fast-
track business approvals through single
window clearance mechanism combine
to make Karnataka a very attractive
destination for the industry. The state
is well positioned to become a hub for
the complete aerospace value chain:
Karnataka as a manufacturing hub:
With the headquarters and
laboratories of HAL in the capital
city of Bangalore, Karnataka has
always been a pioneer in developing
new aircraft and helicopters for the
Indian defence & domestic civilian
use. To augment this capability and
to exploit its potential in the
international market, the State
Government has planned an
aerospace Special Economic Zone
(SEZ) at Devanahalli, which is
close to the new Bangalore
International Airport.
Karnataka as a MRO hub: Currently,
the overhaul of some of the defence
aircraft in India is almost wholly
carried out by HAL. The Indian
MRO industry faces competition
from Southeast Asian countries,
particularly Singapore. Despite this,
the MRO segment has been growing
with new investments happening
particularly at Bangalore. Large
MRO companies are enhancing
their presence in Karnataka.
Karnataka as an aerospace hub for IT
design and engineering services: As the
Silicon Valley of India, Bangalore
presents the highest concentration
of highly mature IT and engineering
services firms. Local software majors
like HCL, Infosys and Wipro have
been serving clients in the global
aviation and aerospace industry for
years. Global leaders in aerospace
have also set up their technology and
engineering services support centres
in Bangalore.
Karnataka as an aerospace hub for
R&D and simulation: With top
technological innovations at its
disposal, Bangalore is rapidly
becoming an aviation simulation and
R&D hub. Karnataka is an attractive
destination for simulation and R&D
due to its inherent advantages of a
large number of highly qualified low
cost engineers & scientists.
Simulation and high-end research
has been the forte of government-
owned organisations based in
Bangalore. Some leading aerospace
companies have engaged with their
Indian counterparts to enhance their
W
The existing supply chain developed by old-economy aerospace and engineering fi rms, investor-friendly government with simplifi ed procedures, and fast-track business approvals through single window clearance mechanism make
Karnataka a very attractive destination for the industry. Despite some challenges related to infrastructure, Karnataka still provides the best opportunity for global investors.
Karnataka: The Budding Aerospace Hub
21AVIATION AVENUESSEARCH - Supplement November 2012
aerospace simulation and R&D
capabilities by establishing facilities
in Karnataka.
ISSUES TO ADDRESSTalent and manpower cost
competitiveness, location-specific
advantages & the presence of specialist
capabilities make Karnataka a global/
regional hub for manufacturing and
for MRO activities. However, some
challenges facing the state include:
Bangalore faces competition from
other cities, such as Hyderabad,
Chennai and Nagpur, in the area of
aerospace manufacturing. These
cities are actively promoting
aerospace SEZs and are trying to
attract foreign investment.
Karnataka can showcase multiple
destinations within the state as hubs
for activities in the aerospace value
chain, thereby assuming a larger
share of potential business.
Karnataka has the advantage that it
can project multiple cities as
aerospace hubs.
Infrastructure is a key challenge in
Karnataka. While infrastructure
facilities have improved, there is a
need to do more and develop more
robust infrastructure, i.e., availability
of land, quality power and water.
Also, the Land Acquisition Act
makes it somewhat time-consuming
for businesses to acquire land;
streamlining land acquisition
processes would be appreciated by
the industry.
An issue facing the industry
(particularly the MRO sector) is
shortage of land. MRO units should
be located close to airports. That
said, the land acquisition process is
time-consuming.
AEROSPACE CLUSTERS IN KARNATAKAWanting to harness the potential of
the state and going a step further than
investing in captive centres, QuEST
established an SEZ in Belgaum.
This SEZ will help to develop an
aerospace cluster in the state. Already
operational, this SEZ will enable many
companies to further leverage expertise
in manufacturing, MRO and R&D.
At the inauguration of the SEZ, the
then Karnataka Chief Minister BS
Yeddyurappa said, “The QuEST
Global SEZ in Belgaum has opened
up newer avenues to attract foreign
investment in the manufacturing space.
We are now poised to offer expertise
through competent local talent and
corporate commitment.”
SEZ Particulars- Formally inaugurated in
November 2009 to focus on
aerospace components and sub-
systems by building a precision
engineering and manufacturing
end-to-end ecosystem (supply
chain cluster)
- Spread over 300 acre, it currently
houses an engineering services
facility, a precision machining
facility and a sheet metal facility.
- Infrastructure includes roads in
and around the zone, a metal
road for smooth movement
of both car and cargo, a four-
lane road to connect the zone
with NH-4, a sewage system
connected to a sewage treatment
plant and a power plant.
Selected Units: Selected global
corporations establishing units
within the SEZ include SABCA,
Magellan Aerospace and Farinia SA
- SABCA will manufacture
metallic parts for Airbus aircraft
in its Belgaum unit. Daniel
Blondeel, CEO, SABCA, said,
“The SEZ can take on start-to-
finish projects and offers many
advantages in the manufacturing
space.”
- Magellan will set up a facility
to manufacture components and
sub-assemblies for aero engines.
Konrad Hahnelt, VP, Magellan,
said, “The location of the SEZ
has increased our operations
efficiency.”
- Foundry and forging major
Farinia will establish an
aerospace forging facility.
Benefits to Local Economy- Aravind Melligeri, Chairman &
Co-Founder, QuEST Global,
said, “The initial investment
for the SEZ project is `150
crore. We are looking forward
to creating more than 7,000 jobs
locally and infusing US$500
million into the economy in the
next 10 years.”
- The SEZ will generate `2,500
crore of aerospace-related
business in 10 years.
- The State Government plans to
establish an aerospace industrial
park near the international airport
at Devanhalli. “We have acquired
about 1,000 acre of land adjacent
to the new airport to build
world-class infrastructure for the
aerospace industry. About 250
acre of land will be earmarked
for an SEZ in the aerospace
hub. The aerospace park is being
located adjacent to a 1,000-acre
electronic hardware park and a
1,000-acre software park, which
will enable the aerospace industry
to leverage the strengths of the
IT sector,” said State Chief
Secretary SV Ranganath.
Aero University- The State Government plans to
establish an Aerospace University
with an aim to improve the
quality of desired talent in the
state. This will help boost
employment besides providing an
overall lift to the local economy.
MANUFACTURING & MROKarnataka provided a balanced
ecosystem of manufacturing &
services companies. While many large
firms like Bharat Earth Movers Ltd,
Robert-Bosch International and Volvo
India Ltd operate from Bangalore,
other new companies are establishing
operations in the city’s outskirts, in key
industrial belts surrounding Bangalore
and in north Karnataka. The growth
of other allied industries has helped
22 AVIATION AVENUES SEARCH - Supplement November 2012
the aviation manufacturing industry
due to increasing maturity of suppliers
and economies of scale.
According to reports, India will
need over 900 commercial aircraft over
the next 20 years. MRO operations
are required to maintain the growing
fleet of aircraft for Indian carriers.
The opening up of Indian skies and
increasing recognition of the talent
pool in India has made the country
an attractive destination for MRO
services. India’s MRO industry earns
over US$1 billion in revenues and has
been growing at double-digit pace.
Currently, some defence aircraft in
India are being overhauled by HAL.
The Indian MRO industry faces
tough competition from countries, like
Singapore and Dubai. Despite this, the
MRO segment has been growing with
new investments, many occurring in
Bangalore. Selected initiatives by large
MRO companies to enhance their
footprint in Karnataka include:
HAL proposed to set up an MRO
unit with an initial investment of
`120 crore at the old Bangalore
airport owned by the company.
National Aviation Company of
India Ltd (NACIL) signed an
agreement with Airbus and
Bangalore-based Jupiter Aerospace
to form an MRO joint venture. The
joint venture is for MRO and life
cycle support of commercial aircraft.
Air Works India Engineering
Private Ltd plans to invest
approximately US$120 million over
the next three years to establish a
MRO centre near Bangalore.
IT, DESIGN & ENGINEERING SERVICESBangalore maintains the highest
concentration of highly mature IT
and engineering services firms. Local
software majors like QuEST, HCL,
Infosys, Tata Consultancy Services and
Wipro have been serving clients in the
global aviation and aerospace industry
for years. Global leaders in aerospace
have also established their technology
and engineering services support
centres in Bangalore. For example:
Infosys Technologies Ltd, another
major software firm, is a partner in
forward integration & helps build
aircraft components and systems for
customers, such as Boeing and
Airbus, through local vendors. In
addition to delivering software and
engineering services for aerospace
clients, the company is now part of
the product supply chain.
Wipro Ltd is another large software
firm that helps build electronic
warfare systems, radars, aviation
electronics and flight simulators
locally for US defence contractors,
such as Lockheed Martin. The
company is setting up dedicated
units for these systems and
anticipates larger revenues from
defence customers moving forward.
The company also maintains a tie-
up with Britain’s largest defence
manufacturer, BAE Systems, to
build sub-systems for aircraft engines
that power business jets.
HCL Technologies is also a leading
software firm with a good clientele
in engineering services for aviation
and aerospace sector. The company
is a strategic partner for Boeing’s
Dreamliner programme and is a
major player in the offshoring of
aerospace technological development
services. The company has also
augmented its aviation and aerospace
capability by its joint venture with
Smith’s Aerospace and by its
acquisition of Axon Consulting that
has strengths in aviation MRO.
R&D AND SIMULATIONIndia is an attractive destination for
simulation and R&D due to its
inherent advantages of a large number
of highly qualified, low-cost engineers
and scientists. Earlier, simulation and
high-end research was the forte of
government-owned organisations like
DRDO, GTRE, ISRO and CSIR (all
based in Bangalore). In the last decade,
the country has welcomed private
foreign investment in R&D with
government support and tax incentives.
Some leading aerospace companies
have engaged with their counterparts
in India to enhance their aerospace
simulation and R&D capabilities:
Airbus Engineering Centre in
Bangalore is the company’s high-
tech aircraft component
manufacturing facility that works
on the development of tools to
aircraft design and structural
analysis using software based
simulation, among other things.
CAE, a global leader in aviation
simulation products and training
services, made Karnataka its base in
India. It is operating from an owned
facility near the new Bangalore
international airport. The Airbus
A320 and Boeing 737 Level D full-
flight simulators in the CAE facility
are certified by India’s Directorate
General of Civil Aviation.
Boeing entered into agreements
with IISc, Wipro and HCL to
develop wireless and other network
technologies for aerospace related
applications.
Mahindra and Mahindra signed an
agreement for the design &
development of a new general
aviation aircraft with NAL, CSIR
and the Government of India.
The wind-tunnel testing centre at
NAL is the primary simulation
testing facility for aircraft engines in
India.
THE WAY AHEADAs a state, Karnataka has the resources
to be a centre of aerospace excellence/
cluster of creativity, where it can
endeavour to gain global notice for
programme management, engineering,
maintenance, material and information
systems support and offer overhaul
services to rotary and all fixed-wing
aircraft. Rationalisation of some features
of the existing policy regime will go a
long way in assisting indigenisation and
absorption of new technologies.
Courtesy: PwC
ADVERTORIAL
24 INVESTMENTS SEARCH - Supplement November 2012
Fostering Karnataka’s Industrial Progress The economic growth and fast development of any state depends on its industrial climate. The depiction of Karnataka as a knowledge hub and a rapidly growing economy is credited to its peaceful industrial scenario. Here’s taking a look at some of the major investments that are all set to take the state’s development to a new level…
TATA STEEL
Investment: `30,000 crore
Location: Haveri district
Project: Steel plant
Description: The 6 mtpa capacity plant will come up in Haveri district. Initially, Tata Metaliks Ltd had proposed to set up a 3 mt integrated steel plant at the same site with an investment of `15,000 crore. Tata Steel is one of the world’s top 10 steel producers. The combined group has an aggregate crude steel capacity of over 28 mt and around 80,000 employees across four continents.
BMM ISPAT Investment: `6,700 crore
Location: Hospet in in Bellary district
Project: Capacity expansion
Description: It is the second largest steel maker is Karnataka. The company has plans to more than double the capacity of its existing plant at Hospet from the current 2 mtpa to 5 mtpa by 2015. The company envisages an investment of `6,700 crore for this purpose, of which the promoters are bringing in `2,500 crore, while the balance `4,200 crore is debt financed by a consortium of 16 banks led by State Bank of India. The added capacity, adjacent to its existing facility, will focus on producing long products, alloy steel for the automobile sector and increasing captive power production to 675 MW from the 235 MW currently produced.
WELSPUN ENERGY
Investment: `5,675 crore
Location: Bijapur, Chitradurga & Belgaum districts
Project: Twin wind power
Description: The company will invest in developing two wind power projects in Karnataka over the next five years. Welspun Energy, a part of the $3.5-billion Welspun Group, signed initial agreements with the Karnataka Government for setting up 100 MW and 750 MW capacity wind power projects in the state a few months ago.
KIRLOSKAR TOYODA TEXTILE MACHINERY
Investment: `3,847 crore
Location: Kittur in Belgaum district
Project: Setting up an engine and a textile machinery unit
Description: The company has received clearance from the Karnataka Government to set up an engine and a textile machinery unit in Kittur in Belgaum district. The unit will generate over 1,200 jobs in the region.
25INVESTMENTSSEARCH - Supplement November 2012
ADITYA BIRLA GROUP
Investment: `2,750 crore
Location: Malkhed in Gulbarga district
Project: Cement plant
Description: The Group will invest in a 4 mt cement plant at Malkhed. It also plans to expand its aluminium plant in Belgaum from 2,000 tonne to 3,000 tonne with an investment of `700 crore.
TOYOTA
Investment: `900 crore
Location: Bengaluru
Project: Capacity expansion
Description: The company, present in India through a joint venture with the Kirloskar Group, will be increasing the capacity of its plant in Bengaluru to 3.1 lakh units per annum by March next year from the present 2.1 lakh units. Most of these investments and increase in production would be to hike the capacity of Innova and Etios.
HUAWEI
Investment: $150 million
Location: Bengaluru
Project: R&D centre
Description: According to the company, the R&D centre will come up over 1 million sqft and would have the capacity to accommodate about 4,000 people. The development centre will cater to Huawei’s enterprise, telecom operators and cellphone business segments. The centre will work on NextGen smartphone handsets. The Indian centre will work on technologies that can increase battery life in smartphones.
Compiled by Nishi Rath & Deepa Sharma
FREUDENBERG
Investment: `130 crore
Location: Mysore
Project: Capacity expansion
Description: Freudenberg Group plans to invest `130 crore by 2016 to expand its chemical specialities unit. The company plans to raise the capacity from 3,000 tonne per annum to 20,000 tonne per annum. The Germany-based company manufactures speciality lubricants, release agents and maintenance products for auto, energy and food industries under the brand names Klüber Lubrication, Chem-Trend and OKS.
26 VISION & MISSION SEARCH - Supplement November 2012
C“Our endeavour is to create an enabling environment and an ecosystem required for industrial development,”
affi rms Murugesh R Nirani, Hon’ble Minister for Large- and Medium-scale Industries, Government of Karnataka, during an exclusive interaction with Nishi Rath. Excerpts…
Our vision is to double the GDP of the state by 2020
OMPELLING KARNATAKAKarnataka has been a
pioneer in industrial
development and is
one of the top five
industrialised states of the country. The
state, known as the knowledge hub,
serves as an excellent base for human
resource. The state’s investor-friendly
policies, proactive government, good
infrastructure, quality power, peaceful
industrial relations and rich resources
are some of the factors that have been
attracting industries to set up base here.
GOVERNMENT INITIATIVESThe state has been at the forefront
when it comes to attracting
investments. In the recently
concluded Global Investors
Meet in June 2012, we were
able to receive investment
commitments to the tune
of `7.2 lakh crore. Our
endeavour is to create an
enabling environment and
an ecosystem required for
industrial development.
Many infrastructure
projects have been
taken up on a PPP
mode. Land being the
primary infrastructure
required to start
industries, we have
initiated a unique
programme of creating
‘Land bank’ wherein we
have identified about
1.2 lakh acre of land
suitable for industries.
We are also bringing
sectoral policies to
address the sector-
specific needs of the industries.
SECTORS DRIVING GROWTH AND THE ROLE OF SMEsKarnataka is strong when it comes to IT
& BT sectors. Apart from these, sectors
like energy, automobiles, aerospace,
food processing and tourism are also
driving growth. We are also focussing
on various new areas such as medical
instrumentation, nanotechnology and
agri-business among others. Coming
to SMEs, one can say that they play
a vital role in the economy because
of their employment potential. Our
focus is to encourage SMEs. The
New Industrial Policy brought by our
government offers attractive incentives
to the MSME sector.
THE INDUSTRIAL POLICY AND OVERALL INDUSTRIAL GROWTHThe Industrial Policy offers incentives
such as investment promotion subsidy
and exemption from stamp duty, among
others. These have turned out to be very
useful in encouraging SMEs. Further,
the policy offers interest-free loan on
VAT for large & mega projects, which
has attracted many leading companies
to the state. The state will also offer
special incentives over and above the
incentives envisaged in the industrial
policy for the projects above `250 crore
of investment on a case-to-case basis.
KARNATAKA, FIVE YEARS FROM NOW...The GSDP of the state for 2011–12
is `4,65,552 crore at current prices
contributing close to 5% of the
country’s GDP. The state achieved a
growth rate of 5.5% in its GSDP in
the same year. Our vision is to double
the GDP of the state by 2020.
27INDUSTRY WISH LISTSEARCH - Supplement November 2012
Today, Karnataka is known as India’s IT hub. The state has a highly developed aerospace industry in the country. Karnataka accounts for 65% of the country’s aerospace-related output and one in every three SMEs in this sector are headquartered in the state. Easy availability of skilled labour, along with well connected logistics system has played an important role in attracting investments into the state. However, establishment of single window approval mechanisms, improved power scenario, etc., will play a critical role in generating higher levels of investor confi dence.
ARINDAM GHOSH AND SUPRITA ANUPAM
Investors’ Confidence Gains Momentum
One of the major advantages of being in Karnataka is easy availability of skilled manpower. In addition, favourable
weather conditions across major parts of the state along with well-connected logistics systems have ensured that
many small sub-contractors and vendors are provided with an ideal environment for setting up large as well as small
businesses. Nonetheless, we wish to see a major change in terms of power, single window approval for starting new
enterprises, etc. Further, I believe that avoiding bureaucratic delays and further improvement in the quality of roads
and highways, will be critical for attracting many more large investments from companies. Such moves will result
in the creation of a fantastic industrial environment for the state. As one of the major companies in the state of
Karnataka for over 26 years, we have large investment plans especially in the state, as per which, we intend to start
two manufacturing units for our products & services business in Karnataka. These are in line with our plans to grow
10 times by 2015–16.
R.Sadananda Murthy, Founder & CEO, Sushma Industries
Karnataka, especially Bengaluru, has been the silicon valley of India for two decades now. Along with software, the
industrial zones in Bengaluru have grown manifold and now stretched to all directions of the city. This trend has also
extended to other small cities of the state like Tumkur, Mysore, Belgaum and Dharwad. RadCAM, being a software
distribution and services company, gives an edge to be in Bengaluru. The proposed developments in the north of
the city will add another dimension to Bengaluru’s manufacturing and software abilities in the next 5–10 years.
Manpower is never a problem in the city with weather as a plus and no cultural rifts. But I feel we need to change
two things in order to grow Bengaluru’s industrial environ, viz., power supply management and political instability.
Although Bengaluru has reasonably good power distribution, there is a scope for improve in some parts of the state.
Further, some of the policies and decisions are also dependent on a stable and focussed government. As part of our
expansion plans in the state, we are planning to have a state-of-the-art training centre in the north of Bengaluru. We
plan to be the No. 1 of sheet metal industry software providers and services company by 2015.
Shiddhalingesh Jolad, Managing Partner, RadCAM Software Solutions
The present difficulties Karnataka is facing are because of the bad planning done in 1990s—be it in the power sector,
road and rail network expansion. It may take another 5–6 years to set right these issues. Cheap political populism is
also responsible for present mess in the power sector. Land acquisition is a major headache not only in this state, but
in the entire nation. This state has riverwater sharing disputes with the neighbouring states. This is affecting the future
drinking water projects, water to new industries and townships, IT parks, etc. We cannot blame the state for this.
The Central Government shall bring comprehensive interstate river water sharing policy to help farmers, industries
in all states. The State Government should follow the Gujarat model in power distribution to ensure 24x7 power to
industries and domestic use.
Ganesha Prabhu, General Manager-FA, Factory Automation Division, Pepperl+Fuchs (India) Pvt Ltd
28 INDUSTRY WISH LIST SEARCH - Supplement November 2012
Much before Karnataka was anointed as the IT hub, it had been the pioneer and undisputed leader for the aerospace
industry in the country. This was largely due to establishment of Hindustan Aeronautics Ltd (HAL) in Bangalore
in 1940 and subsequently, other Defence Public Sector Units (DPSUs) and research institutes such as Bharat Earth
Movers Ltd (BEML), Bharat Electronics Ltd (BEL), Defence Research Development Organisation (DRDO),
Indian Space Research Organisation and Indian Institute of Science (IISc). As a result, numerous SMEs engaged
in manufacturing, design and development built their businesses around these organisations. Today, Karnataka
accounts for 65% of all aerospace-related output of the country and one in every three SMEs in this sector are
headquartered in Karnataka. Some of the biggest names in the industry have set up their manufacturing and services
facilities in the state. The state now has two very unique, but very closely associated industries that it intends to focus
on to project itself as an investor-friendly destination, viz., IT and aerospace.
Rajiv Chib, Associate Director- Aerospace and Defence, PwC India
EFD Induction Private Limited is a medium business based in Germany and Norway. Our strategic targets include
local design and manufacturing of high-tech equipment for the Indian market, supply of modules to our group
companies in Europe and engineering services to other EFD units. Based on these requirements, we found Bangalore
a good location to get skilled and dedicated employees, good suppliers for mechanical & electrical components and
an international airport for fast & reliable shipment. We need to supply world-class equipment to our customers in
India and abroad. Therefore, we need rapid improvements in vocational training to develop a workforce which can
assemble, test and service high-quality equipment. This training has to be driven by the industry and the government
has to provide the infrastructure for it. We would like a dual education system, which is a combination of practical
training in the factory and theoretical training in a school. EFD is already participating in a dual education programme
initiated by the Swiss Government. We are optimistic that we can get stronger in our present business areas and that
we can venture into new applications.
Hubert Reilard, MD, EFD Induction Private Limited & Chairman, Indo German Chamber of Commerce, Karnataka and Kerala
As we know, Bengaluru is also known as Silicon Valley of India, in my opinion, most of this business is coming from
IT and other sectors are yet to witness substantial growth. Other sectors such as biotechnology are growing rapidly.
The manufacturing sector is also strengthening its base in the state, but is far behind states like Gujarat. Karnataka has
many benefits over the other southern states such as conducive weather, availability of good & a wide variety of food.
It is more language-friendly, and has world-class institutes like IISc., IIIT, IIM, Raman Research Institute, TIFR,
CPRI, Jawaharlal Nehru Centre for Advanced Scientific Research and so on, which make the skilled manpower easily
available. Besides, people here are more accommodating. Based on these factors, growth is inevitable, but the state has
some major concerns to resolve, which might affect the growth in the near future.
Subrahmanyakumar, Country Manager,Tyrolit India Superabrasive Tools
State development has been good in terms of attracting the IT industry, but not in manufacturing to some extent.
Biotech and small scale industries have also contributed substantially to the state’s development. The cosmopolitan
offers social acceptance and provides a safe environment; these are the major factors that attract the best talent in India
and from abroad. Besides, infrastructure has been developed well in a few major cities of Karnataka and connectivity
to second-in-line-cities is still to improve.The major issue is the manpower cost, which is posing a big challenge to
be competitive.
Ram Kerur, MD, Sunlux Technologies Pvt Ltd& President, ISA Bangalore
29OPINIONS & MORESEARCH - Supplement November 2012
ARNATAKA: FROM ‘KNOWLEDGE HUB’ TO BEST ‘INVESTMENT HUB’ Karnataka, which houses
many world-class research
centres, has, for decades, led the country
as a ‘knowledge hub’. In addition, R&D
reconfirms the intrinsic strength of
Karnataka as a ‘knowledge hub’. This
has helped various industry segments,
particularly the IT industry, to establish
and build successful businesses. Besides,
the state is blessed with a good climate and
has hospitable people—important aspects
for drawing investments.
IMPEDIMENTS IN THIS IMAGE MAKEOVER The growth has led to serious infrastructure
bottlenecks, which have created challenges
for more investments. The State
Government must proactively prepare the
state for growth via proper long-range
planning/timely execution. With the
exception of Gujarat, almost all major states
lack infrastructure. Serious work needs to be
done by all stakeholders to address this issue
without any further delay. The government
needs to build world-class infrastructure
and prosperity will become incidental!
PRIME INDUSTRIES IN THE STATEIT industry has an ecosystem in Karnataka,
which has propelled growth consistently
over the past 10 years. Also, biotechnology
has gained dominance in the past five years
and will enjoy similar success. Moreover,
as Karnataka is perceived as a knowledge
hub, any segment that revolves around this
element at its core will flourish in this state.
ROLE OF GLOBAL INVESTMENT MEET IN THE STATE DEVELOPMENT The ‘follow-on’ meetings post GIM are
crucial between the industry and the state
to realise the investments garnered during
the event. I am confident that all the parties
involved will drive this in mutual interest.
KARNATAKA, FIVE YEARS FROM NOW…I expect to see Karnataka as a leading
knowledge hub. The state will dominate
in pure research and product developments
leading to higher value add. It will be
extremely tech-oriented with almost every
aspect of life becoming online. Karnataka
will be among the Top 25 cities in the
world for its tech-oriented character.
THE JOURNEY SO FAR...Maini Materials has completed over 28
years in its journey of design, manufacture
& supply of electric material handling
equipment & electric golf/in-campus
transportation buggies. The company
pioneered many equipment ahead of its time
and seeded the industry with mechanised
products, which improved the productivity
and efficiency of the user industry segment.
At present, Maini Materials leads the
market in this space and is adding many
new products to its offerings. The strategic
alliance with Nacco Material Handling
Group, USA, to manufacture and co-brand
products in India is a significant step forward.
Electric forklifts branded ‘Yale-Maini’ excel
both in technology & performance. With
real estate becoming scarce and expensive,
large format warehouses are being built
with >8m height that require special
material handling equipment to store &
retrieve goods. Maini offers products to
fulfil such needs.
EXPANSION PLANS…There are several new areas, which are
being explored by the company. We expect
to grow the company exponentially by
addressing/realising such opportunities
over the next five years.
MESSAGE TO YOUNG ENTREPRENEURS IN THE STATE…Young entrepreneurs are great role models
for the next generation. They will set an
example for others to follow, which, in
turn, will contribute to the growth and
betterment of the state.
K“R&D reconfi rms the intrinsic strength of Karnataka as a ‘knowledge hub’,”
affi rms SA Mohan, CEO, Maini Materials Movement Pvt Ltd, during an interaction with Suprita Anupam. Excerpts…
CEO, Maini Materials MovementSA Mohan
Karnataka will remainthe KNOWLEDGE HUB of the country
30 OPINIONS & MORE SEARCH - Supplement November 2012
ARNATAKA AS AN INVESTMENT HUBThe growth of the machine
tools industry is in line
with the state’s growth
requirements and many MNCs that are
coming to India are looking at investing
in Karnataka. While the state is becoming
one of the fastest emerging manufacturing
hubs, I feel that it is still focussing more
on IT and neglecting other industries.
Undoubtedly, the other industries in the
state are growing. However, the State
Government needs to pay immediate
attention to ensure that Karnataka offers
good connectivity as well as makes sure
that sufficient power is made available to
all. Ensuring these will act as factors that
will lure even more companies to the state.
KARNATAKA FAST EMERGING MANUFACTURING DESTINATIONCurrently, the state is focussing on IT.
However, I believe that with the future
proposed investments and the investments
already made, Karnataka will become the
automotive hub in the near future. While
Reva, Toyota, TVS and Volvo have already
set up base in the state; Honda, Tata and
Mitsubishi plan to establish their plants. This,
in turn, will facilitate the biggest automotive
supply chain in India. Additionally, there
are reasons for investments such as presence
of machine tools & foundry industry, which
are the essential suppliers to the automotive
industries. This is one sector where I see
huge growth opportunities in the state.
INFRASTRUCTURE FACILITYThe state’s infra facility is better than that
in most parts of India. However, a lot more
is desired in the transport facility to support
the heavy engineering and automotive
industries. Apart from Bengaluru, there’s
a huge power scarcity in other cities of the
state, which needs to be tackled.
R&D AND INNOVATION HUB Investments in R&D project in Karnataka,
particularly in and around Bengaluru, have
been huge. This, in a way, is directly related
to IT set-ups—a clear indicator of how the
state is the ‘best’ in comparison to the rest
of the country. While Indian engineering
and other R&D set-ups have been
complementing the MNCs’ R&D centres
so far, I think that over the last two years,
the scenario is changing. Indian companies
are now becoming more & more product
and local customer oriented. This, I feel,
provides a good opportunity in India. For
instance, Disa India set up its own R&D
centre five years ago to fill the local demand
gap. After all, there can be no automotive
growth without R&D and from that point
of view, Karnataka is a good place.
ISSUES THAT NEED TO BE RESOLVED…The industry lacks adequate political
support, which is critical for its growth.
While the industry’s focus in Karnataka
has already changed, politics needs to
function within its boundary and must
not cross into that of the industry support
systems. If this issue is resolved, there will
be huge opportunities in the state. Though
Karnataka is in a better situation than most
of the states in India, it cannot be the only
parameter to ensure industrial growth.
For example, an industry, like ours,
needs a huge amount of power, whose
availability is certainly not up to the mark in
the state. Hence, if power unavailability is
one factor, then local taxation, Generalised
System of Preferences (GSP) is the other.
These must be resolved to push the growth
to an upper level.
YOUR JOURNEY IN THE STATE SO FAR…We set up our business here way back in 1984
and our journey has been satisfactory so far.
We have expanded our business manifold
and already have two manufacturing plants
here. Nonetheless, every few years, we
expand our plant capacity to be in sync with
the state’s growth.
K“The state’s infra facility is better than that in most parts of India. However,
a lot more is desired in the transport facility to support the heavy engineering and automotive industries,” points out Viraj Naidu, MD, Disa India, during an
interaction with Suprita Anupam. Excerpts...
MD, Disa IndiaViraj Naidu
Karnataka’s image will soon change from being an IT HUB to an AUTOMOTIVE HUB
31PRODUCT UPDATESEARCH - Supplement November 2012
This section gives information about products, equipment and services available in the market. If you know what you want. . .refer to Product Index on Page 34 to find it quickly
� CAD/CAM SOFTWARE
CAD/CAM software
provides a complete CAD/
CAM solution to design
(2D and 3D), manufacture
(punching, profi ling, nesting and
bending) and control production
(cost estimation, process
management) of sheet metal components and products. Th e
software signifi cantly reduces inventory and increases material
utilisation, allowing you to realise true return on your investment.
RadCAM Software Solutions
Bengaluru, Karnataka
Tel: 080 - 42007936, 09591704404
Email: [email protected]
Website: www.radcamsoftware.com
� DUPLEX MILLING MACHINE
Duplex milling machine is custom-built to end face multiple
components, both from the front and back simultaneously.
Hydraulically operated automatic clamping system with a
well designed job holding fi xture facilitates multiple components to
get clamped simultaneously and quickly. Two milling heads, one in
the front and other in the back simultaneously perform end facing
operations on both faces of all mounted
components. Job clamping, rapid
approach of the spindle, machining, rapid
homing, rapid de-clamping etc. will be
the part of an effi cient auto-cycle
delivered by the combination of limit
switches and PLC. Th e total cycle time
for duplex end facing the multiple
components is few seconds. Th e machine is designed for high
productivity at low cost, consistent accuracy and with least
dependency on the operator’s skill. Matched pair angular contact
bearings used for supporting the spindles of unit heads of milling
SPMs ensure a very high level of spindle accuracy and high spindle
speeds. Combination of turcite and case-hardened guideways for
high wear resistance and smooth linear movement, automatic
lubrication system, effi cient coolant and chip disposal system,
machine enclosure, easily accessible machine controls etc. are the
features of the duplex milling machines.
Shenoy Engg Pvt Ltd
Bengaluru, Karnataka
Tel: 080-28361767, 09243437487
Fax: 080-28361725
Email: [email protected], [email protected]
Website: www.shenoyengineering.in
� DATA CONVERTER
High-speed data converter-to-FPGA interconnect design
environment has AD9250 dual-channel, 14-bit, 250-
MSP A/D converter featuring the JEDEC JESD204B
serial output data interface standard. It follows full JESD204B
Subclass 1 deterministic latency at 250 MSPS. Th is functionality
accommodates the precise synchronisation of multiple data-
conversion channels through a
serial interface. Th e AD9250 A/D
converter’s serial interface
implementation provides up to 5
Gbps over a 1 or 2 lane-capable
link. Two serial lanes are used to
support the full 250-MSPS, dual
A/D converter data rate, or a
single lane can be used to support
reduced sampling rates. Key features include IF sampling
frequencies of up to 400 MHz, 95-dB channel isolation/crosstalk,
low power and small package size.
Analog Devices
Bengaluru, Karnataka
Tel: 080-43002000
Email: [email protected] , [email protected]
Website: www.analog.com
� CLAMPING SYSTEM
A powerful clamping
system is used for
simultaneous 5-axis
machining. It disposes tool-free
adjustable clamping forces
between 4 kN and 40 kN, which
are measured directly by the
workpiece. Th e support surfaces at a height of 211 mm ensure that
workpieces are easily accessible from all sides. With just one lever
rotation, they are quickly clamped resistant to vibrations and have a
high repeat accuracy. Since the unit is draw bar actuated, the base
body does not sag. Moreover, the clamping mechanism avoids a
chuck jaw fl exing. Th e drive and the adjustment mechanism of the
5-axis clamping vise are completely encapsulated and thus protected
against chips, dirt, coolant, and the easy-to-clean design avoids
build-up of chip clusters.
SCHUNK Intec India Pvt Ltd
Bengaluru, Karnataka
Tel: 080-40538999
Fax: 080-40538998
Email: [email protected], [email protected]
Website: www.in.schunk.com
32 PRODUCT UPDATE SEARCH - Supplement November2012
� CNC PUNCHING SOFTWARE
The CNC punching
software has new and
advance functions which
enables sheets to be automatically
cut off on punching and
combination machines to create
off cuts. Sophisticated tagging
secures the remnant in place while unloading the sheet skeleton.
Th e rectangular nesting algorithm for single parts has been
enhanced to show increases in material utilisation. Th e visual
feedback in the order mode list displays if the tool is ‘not
processed’, ‘partially processed’ or ‘all processed.’
RadCAM Software Solutions
Bengaluru, Karnataka
Tel: 080 - 42007936, 09591704404
Email: [email protected]
Website: www.radcamsoftware.com
� FIBER LASER
Optical fi ber is
used to generate
the beam inside
the electronic source and
transport the beam from
the source to the cutting
head on the L3. Th is off ers
a large number of
advantage, including the
elimination of optical path and laser gas as well as the creation of a
more simple and compact layout. Th e single cutting head uses only
one lens for high-quality cutting across the entire range of
thicknesses. Th e wavelength typical of fi ber means that highly
refl ective materials, such as high-purity aluminum alloys, brass,
copper and galvanised steel can all be cut successfully. Th e airplane
structure carriage design is extremely rigid and allows fast and
accurate positioning together with easy access to the work piece.
Salvagnini Machinery India Pvt Ltd
Bengaluru, Karnataka
Tel: 09913815775
Email: [email protected]
Website: www.salvagnini.com
� HIGH SPEED MACHINING UNIT
High speed machining unit is capable to allow a spindle
speed increase from 18,000 rpm to 23,000 rpm. Th e
machining unit provides new speed options, reliably up to
the maximum speed limit. With an increase of 25% up to a
permissible maximum
spindle speed of 23,000
rpm, operations requiring
higher spindle speeds can be
accomplished more easily.
Th is improvement is the
result of a complete redesign
of drive and spindle bearing
components. A new style
timing belt drive multiplies
the motor speed up to 13,050 rpm spindle speed. An AC inverter
drive is used to increase the spindle speed up to 23,000 rpm at
87Hz. Th e machining unit BEX15 can be applied in axial and
radial orientation, directly mounted to a slide assembly type UA15-
PH or UA15-CNC. In this combination numerous machining
operations like milling or demanding drilling cycles including jump
or peck feed can be accomplished easily.
Suhner India Pvt Ltd
Bengaluru, India
Tel: 080- 27831108
Fax: 80 278311092
Email: [email protected]
Website: www.suhner.com
� HYDRAULIC EXTENSION
The hydraulic extension has a shank
diameter of 6 mm. Th e extension can
be directly clamped without the use of
intermediate sleeves, making them highly
precise. Th e extension does not need any
peripheral equipment, only an Allen key which
is needed for tool change-overs. Independent
of the spindle interface, it transforms almost
every precision toolholder into a fl exible tool,
� GRINDING MACHINE
Portable grinding machine is a tungsten
grinder which is environment friendly
and has the ability to grind quality
points on tungsten electrodes for TIG and
plasma welding. It is equipped with an
integrated dust fi lter thereby protecting the
operator and the environment against the
unhealthy dust produced during grinding of an electrode. It is able
to grind electrodes which are as short as 15 mm with a standard
clamp, whereas with a special electrode clamp it can grind
electrodes as short as 8 mm. Power supply varies from 110-330 V,
frequency 50-60 Hz, motor power 650 W, RPM 28000 and weight
is 2.8 Kg.
SWIT India
Bengaluru, Karnataka
Tel: 080-42187117, 09741481117
Fax: 080-42187118
Email: [email protected]
33PRODUCT UPDATESEARCH - Supplement November 2012
� PRECISION GRINDING MACHINE
Precision grinding machine is
optimised to grind tools up to
16 mm (5/8”) diameter. It has
an option to be fi tted with the
robomate loader, which provides
high-capacity loading with a small
footprint. Th e key component of the
robomate is the Fanuc LR 200iC
robot, which takes the tool directly
from the pallet to the collet in a single grip. Th e loader can be
confi gured for two or four pallets, so large manufacturers will have
the capacity they need for economic high-volume production. Th e
diameter range is 3 mm to 32 mm, tool head diameter is up to 32
mm, tool length is up to 250 mm and 15 seconds is the tool change
time. Other accessories are ANCA 5DX, Core 2 Duo, min 3GB
RAM, 15” touchscreen, ethernet port, 56 kbps modem, two USB
ports and UPS.
ANCA Machine Tools Pvt Ltd
Bengaluru, Karnataka
Tel: 09886049993
Email: [email protected]
Website: www.anca.com
� TORQUE LIMITER
Torque limiter provides
reliable protection for
machines and human
beings. Th e response time is
extremely short and backlash
free. Diff erent overload torque is
possible and it is very easy to set
the desired torque. It can be used
for direct and indirect drives. Torque limiter is based on the usage
of cup springs with degressive characteristics. Once the adjusted
overload torque range is reached, the balls disengage automatically
and the transmission of torque is interrupted. After the torque falls
below the allowable maximum torque, the torque limiter is
re-engaged automatically and continues to transmit the torque.
Torque limiters are available in torque range of 0.5Nm to 1600Nm.
Single position engagement, multi position engagement and full
disengagement options are available in the machine.
Rotolinear Systems
Bengaluru, Karnataka
Tel: 080-23572855
Fax: 080-23379749
Email: [email protected]
Website: www.rotolinearindia.com
� STEPPING MOTOR DRIVE
Stepping motor drive is
available in both AC
and DC input versions.
Th ey can work on currents up
to 4.4A and DC input voltage
up to 45V for low and medium
speed applications. Some
series of motors can work on
currents up to 6A and 75VDC
operation. AC input drives are available operating from 55V AC to
230V AC. Th e drives are suited for high speed applications. Drives
are also available with networking capabilities to operate with
perfect to use in confi ned spaces. Th e run-out accuracy, excellent
vibration damping and internal coolant supply provide for excellent
machining results at the workpiece and for long tool service life. Th e
clamping screw of the extension is radially actuated from the side.
Th erefore, the tool change can be easily done and can take place
directly in the machine if needed. Th e high torque ensures a safe hold
of the tool during drilling, reaming and fi nish milling.
Suhner India Pvt Ltd
Bengaluru, Katnataka
Tel: 080- 27831108
Fax: 080 278311092
Email: [email protected]
Website: www.suhner.com
motors fi tted with encoders. Special drives have been designed to
operate with NEMA43 size motors and for motors designed to
operate at high voltages. All the drives carry protection against
shorting of the motor output terminals, under voltage and over
voltage protection. Th ey are all CE certifi ed. Th ey have specifi c
digital inputs to turn current off which helps prevent overheating of
the motors. All drives have micro stepping up to 3200 steps/ rev.
Some drives can also be set to 4000 steps/rev. Some models carry
an internal oscillator which makes running the motor at a
predefi ned speed with a start-stop signal without a pulse and
direction signal. Th e drives are equipped with an electronic
resonance damping circuit to reduce noise and mechanical
vibrations at low and medium speed operation. Applications
abound in labelling , packaging, ceramic tile printing, X-Y tables
etc.
Strategi Automation
Bengaluru, Karnataka
Tel: 080-32329798, 32467879
Fax: 080-41163047
Email: [email protected]
Website: www.strategiautomation.com
The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of
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34 PRODUCT & ADVERTISERS’ INDEX SEARCH - Supplement November 2012
3D coordinate measuring machine ...................................................235 & 6 Axes CNC tool grinder ...........................................................35-Axes CNC hob regrinder ...............................................................3Animal feed technology .................................................................. BCAS-interface systems .....................................................................BICBrewing ........................................................................................... BCCables for bus system ....................................................................BICCAD/CAM software .......................................................................33Capacitive and magnetic sensor.....................................................BICChocolate / cocoa ........................................................................... BCClamping system ..............................................................................33Cleaning section equipment ........................................................... BCCNC punching software ..................................................................34Colour sorting ................................................................................. BCCompressed air system fitting ..........................................................15Custom-made cable .......................................................................BICData cable ......................................................................................BICData converter ..................................................................................33Duplex milling machine ...................................................................33Exhibition - engineering expo ............................................................4Extruded product ............................................................................ BCFiber laser .........................................................................................34Flour milling ................................................................................... BCForm & cylinder city tester ..............................................................23Grain handling ............................................................................... BCGrinding & dispersion ................................................................... BCGrinding machine .............................................................................34High speed machining unit ..............................................................34Hydraulic component .......................................................................15Hydraulic extension ..........................................................................34Identification system ......................................................................BICInductive sensor .............................................................................BICIndustrial metrology .........................................................................23Instrumentation made cable ..........................................................BIC
Investment navigator ........................................................................13Investment promotion & faciliation .................................................13LLDPE tube ....................................................................................15Metal cutting tool ..........................................................................FICMulti gauging system .......................................................................23Oil milling ...................................................................................... BCOpto-electropnic system ...................................................................23Pasta ................................................................................................ BCPhotoelectric sensor .......................................................................BICPipe tube fitting ................................................................................15Piping systems ..................................................................................15Plastic pellet .................................................................................... BCPlumbing pipes & fitting .................................................................15Pneumatic component ......................................................................15Precision grinding machine ..............................................................35Pure water fitting ..............................................................................15Rice milling equipment .................................................................. BCRotary encoder ...............................................................................BICSensors ...........................................................................................BICSolid carbide drill ..........................................................................FICSolid carbide drill with IC ............................................................FICSolid carbide mill ...........................................................................FICSolid carbide reamer ......................................................................FICSolid carbide reamer with IC ........................................................FICSolid carbide special drill ...............................................................FICSolid carbide special mill ...............................................................FICSolid carbide special reamer ..........................................................FICSpiral cables ...................................................................................BICStepping motor drive ........................................................................35Thermal process .............................................................................. BCTorque limiter ...................................................................................35Turning machine solution .................................................................19Ultrasonic sensor............................................................................BIC
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and send it to 51818eg. SRCH Pump and send it to 51818
Our consistent advertisers
Buhler (India) Pvt Ltd .BC
T: +91-80-22890000
W: www.buhlergroup.com
Carl Zeiss India (Bangalore) Pvt Ltd 23
T: +91-80-43438102
W: www.zeiss.co.in
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G W Precision Tools India Pvt Ltd .FIC
T: +91-80-40431252
W: www.gwindia.in
Karnataka Udyog Mitra 13
T: +91-80-22282392
W: www.kumbangalore.com
Luthra Pneumsys 15
T: +91-09821128362
W: www.pneumsys.com
Meiban Engineering Technologies Pvt Ltd 19
T: +91-80-26491229
Pepperl & Fuchs(India) Pvt. Ltd. .BIC
T: +91-80-28378030
W: www.pepperl-fuchs.com
Tool Grinding Technologies Inc 3
T: +91-80-41170352
W: www.tgtindia.com
36
RNI No; 67827/98 Postal Regd. No: G2 / NMD 81 2011-13 Posted at Mumbai Patrika Channel Sorting Office - GPO - Mumbai 400 001
on 22nd & 23rd of Every Previous MonthDate Of Publication: 18th of Every month