Hon ble Chief Minister of Tamil Nadu

welcomes NRI Investors to

Tamil Nadu The Land of Immense Potential
Presentation on
Tamil Nadu Competitive
advantages and Investment
Opportunities

by

GUIDANCE BUREAU
Government of Tamil Nadu


Presentation Structure
Fundamentals of Tamil Nadu
Current Economic scenario
Competitive advantage analysis
High Growth sectors opportunities
Information technology
Biotechnology
New Initiatives
Govt. support to Investors
Current investment-Flows
Why Tamil Nadu?
FUNDAMENTALS OF TAMIL NADU
3
rd
largest State Domestic Product (SDP) among the states
in India*
Tamil Nadu one of few Indian states with > 6.0% growth
rate of SDP
3
rd
in Human Resource Development index as per Human
Development Report of Govt. of India, 2001
Well-developed manufacturing sector and highest value
addition in factory sector among the major southern states
High export intensity : 1/3 of industrial output valued @
about us $ 6.5 billion
* Estimated
Industry Profile of Tamil Nadu
Traditional Strengths Tamil Nadus
Share in India
Cars 21%
Heavy Commercial Vehicles 33%
Auto Components 35%
Railway Coaches 49%
Cotton Yarn 32%
Leather Tanning Capacity 70%
Software 14 %
Power Driven Pumps 50%

With Ford, Hyundai Motors & HM-Mitsubishi car
Projects, Chennai emerges as Detroit of India.
Chennai produces bicycles to battle tanks B to B
INFRASTRUCTURE DEVELOPMENT INDEX
TAMIL NADU VS. OTHER STATES
Source: CMIE Profile of Indian states
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COMPETITIVE ADVANTAGES OF
TAMILNADU
+High Literacy rate @ 73.5%
+The state has the largest intake capacity in India for
Engineering and Polytechnic education - Annual intake
capacity in engineering colleges is 75, 125 and 45,334 in
polytechnics
+Computer education in schools : about 100,000 students are
trained every year. This project has become the National
Model
COMPETITIVE ADVANTAGES OF
TAMILNADU
-International digital leased lines of 64 kbps and
above
-Several large private ISPs based at Chennai
-Chennai the landing point for 2 submarine cables :
13 + tbps Bharti has commissioned its submarine
cable with a capacity of 8.4 tbps - the largest
bandwidth capacity in the world
-Bandwidth is no more a barrier statewide OFC
backbones under construction by 6 companies.
Power
Current installed capacity: 7905 MW
Power availability in Tamil Nadu better than other states
No power cuts or outages
Uninterrupted quality Power supply to industries
Tariff rate in Tamil Nadu cheaper than most other states
Additional generating capacity:1900 MW during 2002-07
New Projects to be completed in 2002-03: 521 MW
Chennai
Tuticorin
Colachel
Ennore
*
*
*
*
No. of Major Ports 3 : Chennai, Tuticorin & Ennore
Chennai Port the second largest in India
Ennore - first corporate port
Combined cargo handling capacity of 3 major Ports in Tamil
Nadu : 73 million MT about 24% share
Tamil Nadu has 14 minor ports Of this, 7 are captive ports
Ports of
Tamil Nadu
Port Development
Development of Phase II & III and LNG
terminal at Ennore port
Upgradation of port facilities at Cuddalore &
Nagapattinam
Tran-shipment hub Port at Colachel on G-to-G
basis

Best Indian cities Overall Ranking
City Overall Rank
Mumbai (Bombay) 1
Chennai (Madras)
2
Chandigarh 3
Bangalore 3
Mysore 5
Pune 5
Hyderabad 7
Coimbatore 8
Source : BT Gallup Survey of Best Cities to do Business Dec. 2001
Growth of Exports from
Tamil Nadu
Rs.
in
Ten
millions
0
4000
8000
12000
16000
20000
24000
28000
32000
1995-96 1996-97 1997-98 1998-99 1999-
2000
2000-01
30636
23937
21387
19232
17802
16142
Specific Investment opportunities
Software & Electronics
Hi-Tech Agro / food Processing
Petrochemicals
Bio-Technology & Pharma
Roads & minor Port development
Automotive Projects
Development of Industrial Parks
Tourism and Satellite Township Projects
Information Technology
industry in Tamil Nadu
Competitive advantages of Chennai
Highest skilled manpower density and largest turnout of Software
engineers
Eminent Institutions like: IIT, Anna University, etc.
Chennai rated second best in India to do Business
Property prices cheaper than other metropolises
Good city Infrastructure:
Reputed schools - American International School
Chennai health care capital city of India with super-specialty world-class
health care facilities
Good Public transportation facilities
Modern apartments along the beach
International Airport with about 205 direct flights every week connecting
15 countries in Europe, South East Asia
Excellent communication facilities: Bandwidth is no barrier
Several MNCs including Ford, Cognizant Technologies, Citi Bank,
Stanchart, ABN Amro Bank and institutions like World Bank found Chennai
the best location in their Site selection studies
Chennai rated best location in site selection studies of:
World Bank, Washington
ABN Amro Bank
Ford Business Solutions, USA
Cognizant Technologies
Alcatel
Computer Associates
Stanchart Bank and many more
Hence, all the above have made investments in Chennai
Chennai rated as the most attractive location by NASSCOM study
Noble & Hewitt rated Chennai the Best in terms of growth vision and
receptivity to investment
Chennai has one of the largest English speaking population has
multilingual training facilities in languages such as German, French,
Japanese, etc.
Competitive advantages of Chennai
Our Guests
AND MORE
> 45,000
professionals
employed
161
5223 (Rs. Crores)
Software Exports
1996-97
2001-02
PLUS
Hardware Exports
Rs. 482 Crores
In 2001-02
98-99 99-00 00-01 01-02
Growth in no. of IT
companies
100
500
SELECT INDICATORS
166

866
World class facilities the most modern IT park of India
Built-up area 1.28 million sq.feet Largest in India
Unlimited bandwidth and reliable connectivity
High quality supporting infrastructure
TIDEL achieved 100% occupancy in 4 months
Enthused by response, Second Information Technology Park is in
the offing and feasibility & market study underway to identify
sites, define infrastructure specifications.
TIDEL PARK
The millennium park
Software exports from Tamil Nadu
0
1000
2000
3000
4000
5000
6000
1996-97 1997-98 1998-99 1999-
2000
2000-01 2001-02
Rs. in Crores
164.40
393.00
1246.00
1914.00
3116.00
5223.00
Software Export of Tamil Nadu
Sl.No Area of Expertise 2001-02
No.of units* Export value
Rs. in crores
1 Application Software 257 2259.41
2 On Site Consultancy
Services
36 1716.71
3 System Software 33 702.02
4 IT enabled services 114 340.01
5 Web Applications 60 184.93
6 Product / Packages 15 16.84
Note : A unit may have expertise in more than one area of business
Source : Software Technology Parks of India, Chennai
Some Trends in Information Technology
% of Tamil Nadu in Indian Software export
4
6
11 11 11
14
0
2
4
6
8
10
12
14
16
1996-97 1997-98 1998-99 1999-2000 2000-2001 2001-2002*
%
Biotechnology industry in
Tamil Nadu
Tamil Nadu Bio Resource endowments
With 5,000 species of flowering plants, 22,500 sq km of forest cover
and a coastline of 1,000 km, Tamil Nadu is exceptionally rich in
biodiversity
Endowed with about 30% of the total biodiversity resources of India
Extensive coral reef systems across its southern coastline is compared
tropical rainforests in their wealth of biodiversity
Large pool of experts in various areas of Biotechnology

Tamil Nadu Biotechnology Policy
Tamil Nadu - the investor-friendly Biotechnology policy
Establishment of Tamil Nadu Bio-technology Board under the
Chairmanship Dr. M.S. Swaminathan
Single Window facilitation for biotechnology enterprises
Creation of quarantine facilities & sanitary / phytosanitary measures as
per WTO agreement
Creation of Emerging Technology Venture fund
Biotech given industry status
TIDCO plans hosting of facilities for different streams of Biotechnology
Marine Biotechnology Park
Medicinal plants Biotech Park
Madurai
Womens Biotech,
Kelambakkam
Biotech Incubator
Park, Chennai
Bioinformatics &
Genomics centre
Chennai
Bio-Valleys in
Tamil Nadu
TICEL Bio Park : TIDCO-Cornell
Partnership
a) The Biotech Park will have two major facilities viz.
(a) Bio-Resource Centre
(b) Common tenancy area
b) Bio-Resource Centre
- Bio resource center will incorporate state -of- art comprehensive
facilities
c) Incubator Centre
Incubator center will house complete range of equipment for up-
stream and down-stream process development in several segments of
life sciences .
d) Green House and germ plasm centre
e) Land area at Siruseri for development of manufacturing facilities in
future
Marine Biotechnology Park
The first of its kind in India

Location : 20 Kms from Chennai
on East Coast Road
Land : 100 Acres
Completion : End 2003
Project Cost : Rs.50 Crores
Investment by
individual units : Rs.250 Crores
Automobile industry in
Tamil Nadu

OEMs
HM - CARS/MUVS
TELCO - TRUCKS


OEMs.
ASHOK LEYLAND - TRUCKS
FORD - CARS
HYUNDAI - CARS
MITSUBISHI - CARS
ROYAL ENFIELD - MCYCLES
TAFE - TRACTORS
TATR-UDYOG - HCVS
TVS-SUZUKI - MCYCLES
CATERPILLAR - Earth Moving equipment
CREAVES - Tractors
HVF - Battle Tanks
ICF - Railway coaches
TI Cycles - Cycles

NORTH
EAST
WEST
Tamil Nadu
N
W E
S
INDIAN AUTOMOTIVE MAP
SOME KEY PLAYERS

OEMs.
DAEWOO - CARS
EICHER - TRACTORS
ESCORTS - TRACTORS/MCYCLES
HERO HONDA - MCYCLES
HMT - TRACTORS
HONDA - CARS
ITL - TRACTORS
LML - SCOOTERS
MARUTI - CARS/MUVS
NEW HOLLAND - TRACTORS
PTL - TRACTORS
SWARAJ MAZDA - LCVS


NR
160 VENDORS



OEMs
BAJAJ AUTO - SCOOTERS/MCYCLES/
3-WHEELERS
BAJAJ TEMPO - MUVS/TRACTORS/LCVS/3-
WHEELERS
EICHER - LCVS/TRACTORS
FIAT - CARS
GM - CARS
GREAVES - 3 WHEELERS
GTL - TRACTORS
KINETIC - SCOOTERS/MCYCLES
M & M - TRACTORS/MUVS
MERCEDES BENZ. - CARS
SKODA - CARS (AWAITED)
TELCO - TRUCKS/CARS/MUVS


WR
120 VENDORS
.

+ Key Players 107
+ Investment about Rs.36000 million ($ 800 million)
+ Output US $ 1.2 billion
+ Exports US $ 140 million
+ Employment about 45,000 persons
(Direct)

CHENNAI - AUTO COMPONENT INDUSTRY
VITAL STATISTICS

CHENNAI COMPONENT WISE PRODUCTION CAPACITY
SHARE IN INDIA (%)
Visteon the largest component manufacturer of India located in Chennai
Above 50% share
(19 items)
Inlet and exhaust valves, valve guides, valve tappets,
Fuel pumps (petrol), oil pump assembly, thermostat,
Timing chair, water pump assembly, starter Motors,
Alternators, camshafts, oil seals, Brake linings, wiper
motors, Air brake assembly, Engines.
30% - 50%
(10 items)
Fuel pump Nozzle holders, voltage regulations, Flywheel
Magnetos, Steering gears (mechanical & power), wheel
Rims, Electric horns, Dashboard instruments
10% - 30%
(17 items)
Fuel pump Nozzle & elements, delivery valves,
crankshafts, bi-metal bearings, Fuel inj. Pumps,
Radiators, Clutch plates, clutch assembly, shock
absorbers, Automotive tyres, automotive seats.
Less than 10% 7 items
+ GM USA
+ FORD USA
+ DAIMLER CHRYSLER USA
+ BMW GERMANY
+ VOLVO SWEDEN
+ NISSAN JAPAN, UK
+ PIAGGIO ITALY
+ NEW HOLLAND ITALY
Exports from Tamil Nadu
KEY OEM CUSTOMERS
KEY ADVANTAGES

+ Highly-skilled and educated workforce and primarily
English-speaking Managers
+ Quality conscious manufacturers
+ Low-cost manufacturing base
+ Partnering linkages with global supply chain
India produces 80% of auto components and exports
components world wide
ADVANTAGE TAMIL NADU
Excellent Manufacturing Base :
=> High Machine Tool Capability
=> Improving Tooling Capability
=> Extremely Capable Component Industry
=> Most Raw Material Locally Produced

ADVANTAGE TAMIL NADU
Facts About Tamil Nadu --
Auto Component Industry
. Sundaram Clayton - Deming Prize Winner in
the Indian Auto Component Industry, out of
the 5 in the world outside Japan.

. GM Supplier of The Year Award Bagged 5
Consecutive Times By Sundaram Fastners

. Ford (Chennai Plant) Exports CKDs / SKDs of
Ikon From India With More Than 80% Local
Content

. Hyundai (Chennai Plant) exports assembled cars
and Components
Facts About Chennai
Has a share of 35% installed capacity in components
manufacturing in India
Many component suppliers have ISO 9000 and OE suppliers
The Largest Number Of ISO/QS Certified Companies :
_ More than 50% ISO Certified
_ More than 26% QS Certified
+VISTEON have started exporting components made in India to their
various other plants around the world- Investing further to make
India as a manufacturing base.
Fastest growing market for Two wheelers
Award winners like :
+Deming Prize Winners in the Indian Auto Component
industry, out of the 5 in the world outside Japan
+GM Supplier of The Year Award Bagged 5 Consecutive
Times By an Indian Company
About assistance from
Tamil Nadu Industrial
Development Corporation
(TIDCO)



TIDCO

=A Govt. of Tamil Nadu Enterprise formed in
1965

=A company with an Authorised share capital of
Rs.1250 million

=Assistance by the state government
Equity Rs. 942 million
Loan Rs. 373 million
TIDCO
Mainly promotes industrial development in the state through
Joint Ventures with private sector participation in three
categories
Joint Sector with - 26% of Equity
Associate Sector with - 2 to 11% of Equity
Escort Sector with - 1% of Equity
A Non-Banking Financial Company registered with Reserve Bank
of India
Has mobilised deposits from public up to Rs. 2,371 million
TIDCOS PARTICIPATION COVERS A
WIDE SPECTRUM OF PROJECTS
TIDCO has promoted several industrial ventures in
allied fields such as :
+CHEMICALS,
+ENGINEERING,
+LEATHER,
+TEXTILES,
+AGRI-BUSINESS,
+AUTOMOBILE,
+PHARMACEUTICALS,
+FOOD PROCESSING AND
+INFRASTRUCTURE

NOTABLE
PROJECTS COMPLETED
FERTILIZERS AND CHEMICALS -
SPIC - FERTILIZERS
TPL - LINEAR ALKYL BENZENE
TEL - NITROGLYCERINE BASED
COMMERCIAL EXPLOSIVES &
ACCESSORIES
CORE SECTOR -
TANCEM - CEMENT
SISCOL - STEEL PLANT & ROLLING MILL
NOTABLE PROJECTS COMPLETED
(contd..)
FOOD-PROCESSING & PHARMACEUTICALS
SKM - EGG POWDER
MALLADI - EPHEDRINE HYDROCLORIDE
R.R. MEDI PHARMA - INTRAVENOUS FLUID
TAMILNADU DADHA - PHARMACEUTICALS
( NOW SUN PHARMA)

ELECTRONICS, IT & COMMUNICATIONS
TITAN INDUSTRIES - WATCHES & JEWELLERY
TTL - TELECOM CABLES &
ACCESSORIES
VENTURE LIGHTING - METAL HALIDE LAMP
DYNAVISION - CONSUMER ELECTRONICS
NOTABLE PROJECTS COMPLETED (Contd.)

INFRASTRUCTURE
TIDEL PARK - IT PARK
TNRDC - DEVELOPMENT & MAINT.
OF ROADS & HIGHWAYS
CHENNAI TRADE - CONFERENCE,
CENTRE EXHIBITION FACILITIES
MAHINDRA INDL. - ECO FRIENDLY
PARK INDUSTRIAL CITY
OTHERS
CHESLIND TEXTILES - TEXTILES
RAMBAL - AUTO COMPONENTS
DCM HYUNDAI - MARINE FREIGHT
CONTAINERS
PROJECTS
UNDER IMPLEMENTATION
TICEL BIO PARK
WITH TECHNICAL COLLABORATION FROM
CORNELL UNIVERSITY, USA, AND CAPITAL
OUTLAY @ RS.630 MILLION
HI-TECH INDUSTRIAL PARK (SEZ)
A JOINT VENTURE OF TIDCO & INFAC GROUP,
USA WITH A CAPITAL OUTLAY OF RS.7000
MILLION AT NANGUNERI, THIRUNELVELI
DISTRICT
PROJECTS UNDER IMPLEMENTATION
CONTD...
TANFLORA INFRASTRUCTURE PARK
A FLORICULTURE INFRASTRUCTURE PARK WITH EXPORT
THRUST AT A CAPITAL OUTLAY OF RS.250 MILLION
BEING DEVELOPED ON THE LINES OF AGREXCO OF ISRAEL, IN
DHARMAPURI DISTRICT
NAGARJUNA OIL CORPORATION
A PETROLEUM REFINERY WITH 6 MILLION TONNES PER YEAR
CRUDE THROUGHPUT CAPACITY WITH A CAPITAL OUTLAY OF
RS.34,800 MILLION
PROMOTED AS A JOINT VENTURE OF TIDCO & NAGARJUNA
GROUP
PROJECTS IN CONCEPT STAGE
SECOND INFORMATION TECHNOLOGY
PARK
MARINE BIOTECHNOLOGY PARK
RUBBER INDUSTRIES PARK
XECHEM INC., (ANTI CANCER DRUGS)
WINERY PROJECT

About Industrial Parks in
Tamil Nadu
SIPCOT Industrial Parks
Irungattukottai Industrial Park
Sriperumbudur Industrial Park
Gummidipoondi Industrial Park
EPIP at Gummidipoondi
Cuddalore Industrial Park I & II
Pudukottai Industrial Complex
Hosur Industrial Complex - I & II
Manamadurai Industrial Complex
Cheyyar Industrial Park
Tuticorin Industrial Park
Ranipet Industrial Park
Nilakottai Agro Park
Gangaikondan Growth centre
Perundurai Industrial Park
Bargur Industrial park
Oragadam Industrial park
Siruseri IT Park
TIDCO Industrial Parks
Ennore Petrochem Park
Hi-Tech industrial Park & SEZ,
TANFLORA Floriculture park
TIDCO Mahindra Industrial Park
Rubber Park
Garments Park
TIDEL Park
Bio-Tech park, Bio-Valleys
Bio-Informatics Park

SIPCOT INFORMATION
TECHNOLOGY PARK - SIRUSERI
Exclusive for IT industry
Spread over 1000 acres
Planned as a self contained city
Preferred Destination of IT Investments
SIPCOT IT PARK- SIRUSERI
LOCATION : 24 KM S FROM CHENNAI ON
OLD MAHABALIPURAM ROAD

AIRPORT : INTERNATIONAL AIR PORT
AT 20 KMS FROM SIRUSERI

SEAPORT : ALL WEATHER PORT AT 30 KM
AT CHENNAI

RAILWAY STATION : 30 KMS AT CHENNAI CONNECTED
THROUGH OUT THE COUNTRY
Irungattukkottai Industrial Park
Location Sriperumpudur Taluk,
Kancheepuram Dist. 35 Km. From
Chennai
Area & Cost 1843 Acres & Rs.12 lakhs per acre
Connectivity Well connected by National Highway
to Chennai city. Chennai Domestic /
International Airport, Seaport &
Railway station located at a distance
of 35 Km from the park
Water supply 5 Millions Gallons per day through
pipeline
Power supply Separate substation provided for
uninterrupted power supply
Telephone Separate Telephone Exchange is
provided. Connections are available
on demand
Major Units
located
Hyundai Motors, Matsushita, Lumax
Samlip, Pos Hyundai, Iljin, JBM
Sangwoo & Mando Brake Systems
100 200 acres can be allotted immediately
in this Industrial Park
Credentials
Mahindra & Mahindra Ltd.



Promoters
Tamil Nadu Industrial Development
Corporation Ltd.



Infrastructure Leasing & Financial
Service Ltd.




Design : JTC International, Singapore


Landscape : Belt Collins, Singapore
FDI - State-wise Position (August 2002)
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Rs. in crores
Tamil Nadu the Third largest recipient of FDI
Source: SIA, Govt. of India
What Govt. of Tamil Nadu offers?
Land in Industrial Parks
Single Window facility to get all approvals
Good Infrastructure support & Power supply
Attractive Incentives Package
Single window facilitation
Govt. of Tamil Nadu offers an effective Single window
facility to take care of all clearances & approvals as
well as infrastructure support like power, water, land
allotment, etc.
Common application form for all approvals and
infrastructure support
In-principle clearance within 2 weeks to enable the
company to go ahead with implementation
Guidance Bureau designated as Single Window
documentation centre by Govt. of Tamil Nadu
Contact addresses
Mr.K.Skandan IAS
Secretary to Government
Industries Department
Govt. of Tamil Nadu
Fort St.George Chennai 600 009
Phone: (044) 25671383
Fax: (044) - 25670822
Mr.Arun Ramanathan IAS
Chairman & Managing Director
T I D C O
19-A, Rukmani Lakshmipathy salai,
Egmore
Chennai-600 008
Phone: (044) 2855 3710
Fax: (044) 28553729
Mr.T.N.Ramanathan IAS
Director
GUIDANCE BUREAU
19-A, Rukmani Lakshmipathy salai,
Egmore
Chennai-600 008
Phone: (044) 2855 3118
Fax: (044) - 28588364

Mr.M.Velmurugan IES
Additional Director
GUIDANCE BUREAU
19-A, Rukmani Lakshmipathy salai,
Egmore
Chennai-600 008
Phone: (044) 2858 8364
Fax: (044) - 28588364
E-mail: mvel@vsnl.com
Thank you

Please visit our websites:

www.tidco.com
www.sipcot.com
www.elcot.com
www.tn.gov.in
www.itparkchennai.com