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WEST BENGAL

September 2009

WEST BENGAL

September 2009

Investment climate of a state is determined by a mix of factors

Procedures for entry and exit of firms


Industrial regulation, labour regulation,
other government regulations
Certainty about rules and regulations
Security, law and order situation

Skilled and cost-effective labour


Labour market flexibility
Labour relations
Availability of raw materials and natural
resources

Resources/Inputs
Incentives to industry

Investment climate
of a state

Tax incentives and exemptions


Investment subsidies and other incentives
Availability of finance at cost-effective terms
Incentives for foreign direct investment
(FDI)
Profitability of the industry

Regulatory framework
Physical and social
infrastructure

Condition of physical infrastructure such as


power, water, roads, etc.
Information infrastructure such as telecom,
IT, etc.
Social infrastructure such as educational
and medical facilities

WEST BENGAL

September 2009

The focus of this presentation is to discuss


West Bengals performance on key socio-economic indicators
Availability of social and physical infrastructure in the state
Policy framework and investment approval mechanism
Cost of doing business in West Bengal

Key industries and players

PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS


WEST BENGAL September 2009

West Bengals economic performance is driven by the


secondary and tertiary sectors

The states GDP grew at a CAGR of 12.7 per


cent between 1999-2000 and 2007-08, to reach
US$ 75.5 billion.

The tertiary sector continues to lead,


contributing around 59.8 per cent to the
GSDP.

The contribution of the secondary sector to


the GSDP has been rising. It was 10.6 per cent
in 2001-02 and 12.8 per cent in 2006-07.

The contribution of the primary sector has


been declining. Its share has fallen from 32.9
per cent in 2001-02 to 27.4 per cent in 200607.

West Bengals GSDP (US $ billion)

CAGR
12.69%

Percentage distribution of GSDP

Source: CMIE and CSO

CAGR

2.2%

10.2%

7.2%

PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS


WEST BENGAL September 2009

Households in the state have growing potential for consumption

In 2007, the per capita income of West Bengal


was US$ 757 as compared to the all-India
average of US$ 808.

Employment levels are varied with a significant


concentration in the self employed, and juniorto medium-salaried categories.

Percentage distribution of urban households by SEC*

Percentage distribution of rural households by SEC*

Urban
(in %)

Rural
Source: BW Marketing Whitebook, 2009-10;
*See Annexure for description of SEC classifications

(in %)

PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS


WEST BENGAL September 2009

Households in the state have growing potential for consumption

West Bengal has a lower average ownership of household goods and basic amenities such as electricity
compared to the all-India average.

Economic growth in the state provides potential for tapping an increasing consumer base.
Percentage ownership of household goods, vehicles and consumption of electricity

Two-Wheelers

Four-Wheelers

Televisions

Source: The Market Skyline of India 2006 by Indicus Analytics

Electricity

PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS


WEST BENGAL September 2009

Industrial performance is driven by medium and small


scale units

As of September 2007, there were 10,795 small


scale industrial units registered with the
Directorate of Cottage and Small Scale
Industries; they employed 111,586 persons.

Key Industries in West Bengal


Chemical products
Textiles
Coal
Iron and steel
Engineering goods
Leather and leather products
Tea
Jute products
Breweries
Paper
Drugs and pharmaceuticals
Electricals and electronics
Plastics
Software
Locomotives
Vegetable oils
Gems and jewellery

Estimated number of unorganized


manufacturing enterprises in 2005-06 was
2,752,793, which accounted for 16.1 per cent of
the total unorganised sector in the country.

PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS


WEST BENGAL September 2009

West Bengal has witnessed a strong inflow of investments in


the manufacturing sector

The state had outstanding investments* of


roughly US$ 142 billion as of December 2008.

Bhaskar Silicon, a special purpose vehicle (SPV)


floated by Environ Energy is setting up an
integrated poly-silicon unit with a capacity of
2,500 tonnes per annum (TPA) and investment
of US$ 1.7 billion.

Cals Refineries Limited is setting up a refinery


unit Phase-I with a capacity of 5 million tonnes
per annum (MTPA) at Haldia in the Midnapore
district with an investment of US$ 1.4 billion.

Break up of investment by sector

Source: CMIE
*Outstanding investments include new projects and those under implementation, but not projects that have been shelved

PERFORMANCE ON KEY SOCIO-ECONOMIC INDICATORS


WEST BENGAL September 2009

District-wise key industries


District

Key Industries

Burdwan

Iron and steel, fertiliser, mining, equipment manufacturing and cement

North 24-Parganas

Printing and bookbinding, cement, oilseed milling and general electrical works

South 24-Parganas

Cement, agro-based, chemicals and equipment manufacturing

Hooghly

Rice mills, rubber and chemicals

Howrah

Foundry, re-rolling mills, basic metal and products, electrical and electronics, transport equipment and
spares, and moulded rubber goods

Bardhaman

Rice and oilseed mills, cutlery, tool manufacturing, iron and steel, fertilisers, mining, equipment
manufacturing and cement

Darjeeling

Tea and tourism

Bankura

Food processing, textiles, plywood, veneer mills, paper and particle board

Nadia

Food processing, jute, pipes and tubes, electronics and computer peripherals

North Dinajpur

Food products, hosiery, garments, chemicals, engineering and fabrication

Purulia

Sponge iron and non-metallic products

Cooch Bihar

Fertiliser, jute, electrical casing, mustard oil mill and food processing

South Dinajpur

Agro and food-based, mineral and forest-based, chemicals, handicrafts, engineering and IT.

WEST BENGAL

September 2009

The focus of this presentation is to discuss


West Bengals performance on key socio-economic indicators
Availability of social and physical infrastructure in the state
Policy framework and investment approval mechanism
Cost of doing business in West Bengal

Key industries and players

10

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE


WEST BENGAL September 2009

Social infrastructure (educational and medical institutions) in


the state is strong...(1/2)
Educational infrastructure

Status of educational institutions


18 universities

West Bengal has a literacy rate of 68.6 per cent.

53 engineering colleges

The state has leading technical institutions


including the Indian Institute of Technology (IIT)
at Kharagpur, management institutions including
the Indian Institute of Management (IIM) at
Kolkata, and institutions for medicine and law.

450 degree colleges


43 polytechnics
50 industrial training institutes (ITI) and industrial
training centres (ITC)

It has 67,107 primary schools, 2,985 secondary


schools and 8,640 higher secondary schools.

29 management institutes
9 medical colleges

Source: Economic Survey of West Bengal, 2007-08

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AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE


WEST BENGAL September 2009

Social infrastructure (educational and medical institutions) in


the state is strong...(2/2)
Medical infrastructure

Health indicators

West Bengal has 2,081 hospitals including


government, local, and those funded by
voluntary organisations; 1,269 health centres
including rural hospitals, block primary health
centres and primary health centres and 10,356
sub-centres.

West Bengal

All India

Birth rate*

17.9

23.1

Death rate*

6.3

7.4

Infant mortality rate**

37.0

55.0

Male

67.4

63.7

Female

71.1

66.9

Life expectancy at birth (years)

The state has better health indicators as


compared to the national average.

*Per thousand births, ** Per thousand live births


Source: RHS Bulletin, Ministry of Health and family
Welfare, March 2008

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AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE


WEST BENGAL September 2009

West Bengal has amongst the best infrastructure for collection


of savings and disbursal of credit

The state has a credit-deposit ratio of 61 per


cent for commercial banks.

Financial institutions in West Bengal

As of June 2007, commercial banks had deposits


of US$ 4.7 billion in the rural areas and US$ 3.3
billion in semi-urban areas.
The credit advances were at US$ 1.9 billion for
rural and US$ 1.03 billion for semi-urban areas.

Primary agricultural credit societies

12,077

Indian commercial banks

4,691

Rural banks

836

Urban cooperative Banks

49

Foreign banks

11

Source: RBI Report 2007

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AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE


WEST BENGAL September 2009

Transport infrastructure is adequate(1/2)


Roads

West Bengal has total road length of over


92,023 kms.

Civil aviation

The Netaji Subhash Chandra Bose


International Airport is located in Kolkata;
the domestic airport is at Bagdogra.

Road density is 1.04 km per sq km. as


compared to the national average of 1.1 km
per sq km

Total commercial traffic at Kolkata airport


in 2008-09 included about 7 million
passengers and 88,040 tonnes of freight.

Existing network is being upgraded, with


express highways and freeways. The KolkataNew Delhi link is being widened to four lanes.

The Government of India has sanctioned


US$ 0.68 million to set up a perishable
cargo complex at the Bagdogra airport.

The golden quadrilateral project undertaken by


the National Highway Authority of India
(NHAI) will pass through major districts in
North Bengal.

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AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE


WEST BENGAL September 2009

Transport infrastructure is adequate(2/2)


Railways

Ports

West Bengal is well connected with the Indian


Railways network; railway route length in the
state is roughly 4,500 kms.

West Bengal has two modern ports


located at Kolkata and Haldia;
Kolkata is a major port.

Howrah, Asansol, Sealdah, Bandel, Bardhaman,


Kharagpur and New Jalpaiguri are the main
junctions in West Bengal.

In 2007-08, the combined volume of


goods handled by both the ports
was over 53.3 million tonnes.

The West Bengal government plans


to construct a US$ 265 million
container port at Kulpi.

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AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE


WEST BENGAL September 2009

Power and telecommunications development


Telecommunications

Power

The state government took steps for the


installation of an additional capacity of about
525 MW of power in 2007; around 4,570 MW
capacity is to be added by 2010-12.

According to estimates by the Telecom


Regulatory Authority of India, the number of
wireless connections in West Bengal was 12.1
million and the number of wire-line
subscribers was 1.1 million, as of September
2008.

The state government is encouraging setting up


of renewable energy based power plants and
around 60 MW capacity is likely to be added in
the renewable energy sector by 2009-10.

Kolkata offers about 580 Mbps of


international satellite connectivity through
VSNL and Software Technology Parks of India
(STPI).

The state has two satellite earth stations at


Kharagpur and Durgapur.

According to the Central Electricity Authority,


the state had an installed power capacity of
7,942 MW as of August 2009.

It has a strong pumped-storage-based hydel


power capacity and potential.

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AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE


WEST BENGAL September 2009

Industrial infrastructure is being built(1/2)

The West Bengal Industrial Development Corporation helps get clearances required for setting up industry.

It also focuses on sector-specific infrastructure for industries such as food, apparel, biotechnology, IT and
electronics.

Name
Manikanchan SEZ

Products / Services
Gems and jewellery

Location
Salt Lake, Kolkata

Shilpangan

Light engineering products

Salt Lake, Kolkata

Apparel Export Park

Garments, buttons, accessories, washing/


processing
Garments

Uluberia, (Howrah district)

The Garment Park

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Kolkata

AVAILABILITY OF SOCIAL AND PHYSICAL INFRASTRUCTURE IN THE STATE


WEST BENGAL September 2009

Industrial infrastructure is being built(2/2)


Name
Food Park
(Phase I & II )

Products / Services
Food processing

Location
Sankrail, (Howrah district)

Poly Park

Polymer products

Sankrail, (Howrah district)

Rubber Park

Rubber footwear, hoses, tubes, automotive rubber


products

Sankrail, (Howrah district)

Biotech Park

Biotechnology projects

Dewanmara (West Midnapore district)

Plasto Steel Park


(Phase - I & II)

Iron and steel and plastic products

Borjora (Bankura district)

Iron & Steel Park

Steel products

Kharagpur (West Midnapore district)

Iron & Steel Park

Steel products

Jhargram ( West Midnapore district)

Foundry Park

Castings, forge and foundry products

Howrah

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WEST BENGAL

September 2009

The focus of this presentation is to discuss


West Bengals performance on key socio-economic indicators
Availability of social and physical infrastructure in the state
Policy framework and investment approval mechanism
Cost of doing business in West Bengal

Key industries and players

19

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM


WEST BENGAL September 2009

Key nodal agencies in West Bengal(1/2)


West Bengal Industrial
Development Corporation
(WBIDC)

The WBIDC focuses on financing of medium and large scale industries.

Provides escort service and facilitates investment proposal through Shilpa Bandhu

West Bengal Industrial


Infrastructure Development
Corporation (WBIIDC)

The WBIIDC is responsible for balanced and well-planned industrial development in the state.

It promotes joint sector and assisted sector units in important industry segments.

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POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM


WEST BENGAL September 2009

Key nodal agencies in West Bengal(2/2)


West Bengal Electronics Industry
Development Corporation
Limited (WEBEL)

WEBEL is responsible for the development of IT/ITeS industries in the state.

Assists investors in obtaining all necessary approvals for new projects and facilitates setting up
of IT and electronics industry.

West Bengal Finance Corporation


(WBFC)

WBFC provides loans to small and medium scale industries.

It focuses on the development of export oriented units.

It has special schemes such as the National Equity Fund scheme for setting up of nursing homes
and for acquisition of electro-medical equipment.

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POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM


WEST BENGAL September 2009

Key nodal agencies for single window clearance


Shilpa Bandhu: State-level nodal agency for single window
clearance
Purpose:

To provide guidance and


information to investors
about policies and
programmes of the state; it is
monitored by an Empowered
Committee.

District Industry Centres (DIC): District-level committees for single


window clearance

Functions:

Purpose:

Developing business, trade


and industrial links with
domestic as well as foreign
institutions and
companies.

Developing various
sector-specific industrial
parks.

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Provides sanctions
and clearances for
setting up small scale
industrial (SSI) units
in the state.

Composition:

Convened by the General Manager,


District Industries Centre and includes
the Environmental Engineer of the West
Bengal Pollution Control Board,
Superintending Engineer/Executive
Engineer of PSEB, District Officer of
Housing and Urban Development
Authority and the Assistant Director of
Factories.

POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM


WEST BENGAL September 2009

Attractive investment climate through investment friendly and


sector specific policies..(1/4)
IT Policy, 2003

Aims to utilise the potential benefits offered by IT


Key initiatives under this policy include the following:

Procedures under existing labour laws are simplified to ensure smooth operations.

Self-certification allowed for IT companies on several activities.

One time fiscal incentives - exemption from consumption tax and quality linked incentives.

Exemptions from stamp duty and registration fee.

Exemptions from all state and local taxes on transaction with the SEZs; this also applies to supply from domestic tariff areas to the
SEZ.

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POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM


WEST BENGAL September 2009

Attractive investment climate through investment friendly and


sector specific policies..(2/4)
Special Economic Zone Act (SEZ), 2003
Aims to develop the export potential of the state

Key initiatives include the following:


Exemption from customs duty on import of capital goods, raw material, consumables and spares.
SEZ units are permitted to take job work abroad and export goods from there while continuing to be eligible for the benefits
entitled to an SEZ.

SEZ units will have access to international finance at international rates through offshore banking units (OBU) to be set up within the
SEZ.

Entitlement of duty free imports of samples enhanced to US$ 6,000.

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POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM


WEST BENGAL September 2009

Attractive investment climate through investment friendly and


sector specific policies..(3/4)
Export Policy, 2003
Aims to make exports a priority area recognizing the enormous export potential of the state
Key initiatives under this policy include:
Exemption from sales tax on proceeds from transfer of licenses, such as, exim-scrip, replenishment (Rep) license, advance license,
duty entitlement passbook (DEPB) license

Award for excellence in exports

Implementation of e-governance projects

Setting up of a commerce cell to look after all aspects of export promotion

Round-the-clock movement of export cargo

A special market information service to be provided

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POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM


WEST BENGAL September 2009

Attractive investment climate through investment friendly and


sector specific policies..(4/4)
Draft Biotech Policy, 2006
Aims to facilitate the growth of biotech industries and development of clean biotech technologies
Key initiatives include:
Conserving bio-diversity through mapping and sustainable use of bio-resources.
Spreading general awareness for optimum utilisation of biotech in the agriculture sector.
Creating a Centre of Excellence for Biotechnology as a high quality support service to the biotech industry.
Facilitating the flow of venture capital funds and bank credit to biotech companies.

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POLICY FRAMEWORK AND INVESTMENT APPROVAL MECHANISM


WEST BENGAL September 2009

Mechanism exists to facilitate speedy implementation of


industrial projects
WBIDC, through its Single Window Cell or State Industrial Facilitation Centre (SIFC),
coordinates with other facilitating state level institutions/agencies to sort out delays in obtaining
approvals for smooth implementation of the projects. WBIDC assists in approvals meant only
for the manufacturing sector.
WEBEL is the nodal agency of the West Bengal government for developing IT and ITeS industries in the
state. It provides support in terms of developing infrastructure such as land and buildings for investors,
facilitates the clearance obtaining processes required to set up business, ensures last-mile connectivity
and assists the government in all its e-governance projects. The nodal agency acts as the single window
support centre for all services required by IT/ITeS investors in West Bengal.

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WEST BENGAL

September 2009

The focus of this presentation is to discuss


West Bengals performance on key socio-economic indicators
Availability of social and physical infrastructure in the state
Policy framework and investment approval mechanism
Cost of doing business in West Bengal

Key industries and players

28

COST OF DOING BUSINESS


WEST BENGAL September 2009

Cost of doing business in West Bengal


Cost Parameter

Cost Estimates

Source

Cost of land (per sq ft)

US$ 4 to US$ 100

Industry sources

Hotel room cost


(per night)

US$ 108 to US$ 152

Indian hotel survey

Cost of office space


(rent per sq ft per annum)

US$ 4 to US$ 12

Industry sources

Cost of residential space


(rent per sq ft per annum)

US$ 2.6 to US$ 6.3

Industry sources

Power cost

Commercial: 22 cents per kWh


Industrial: 33 cents per kWh

West Bengal State Electricity Distribution Company


Limited

Cost of water

Commercial and industrial: US$ 11 to


US$ 15 per month

Kolkata Municipal Corporation

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WEST BENGAL

September 2009

The focus of this presentation is to discuss


West Bengals performance on key socio-economic indicators
Availability of social and physical infrastructure in the state
Policy framework and investment approval mechanism
Cost of doing business in West Bengal

Key industries and players

30

KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Key industries that have developed in the state as a result of


policy thrust of the government and several factor advantages
Industry attractiveness matrix
High
IT &
electronics

Bio tech

Policy thrust

Food
processing

Medium

Auto
components

Petrochemicals

Metals

Real
estate/const
ruction

Retail
Textiles

Low

Medium

High

Factor advantage
*Factor advantages include benefits due to geographical location and availability of factors such as talent pool, natural resources and capital.

31

KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Overview of the tea industry in West Bengal

West Bengal is the second largest tea growing


state in India after Assam and accounts for
around 24 per cent of the total tea produced in
India.

The total annual production of tea is 226.8


million kg (mkg).

Darjeeling and Jalpaiguri, the two northern


districts of West Bengal, are where most of the
tea gardens are located.

Key Players
Tata Tea
Goodricke Group Limited

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Key players in the Tea industry


Tata Tea

Goodricke Group
Limited (GGL)

Tata Tea is the largest brand of tea in India. It acquired the UK-based Tetley Group, a few years ago.

The company has five major brands in the Indian market , viz., Tata Tea, Tetley, Kanan Devan, Chakra
Gold and Gemini.

It has its head quarters and tea estates in West Bengal.

GGL, a part of Camellia plc. UK, is engaged in the cultivation, manufacture, and sale of tea in India.

It has 17 gardens, including three gardens in Darjeeling, two in Assam and 12 in Jalpaiguri.

Its turnover in 2008 stood at US$ 73.2 million on a total crop production of 21.5 mkg.

It plans to launch cold tea and enter the ready-to- drink products market by December 2009.

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Overview of petroleum and petrochemicals industry in


West Bengal

West Bengal accounts for almost 4 per cent of


the countrys production of petroleum products
and 13 per cent of the countrys production of
polymer.

Haldia Petrochemicals Limited is one of Indias


largest integrated petrochemical complex.

Mitsubishi Chemicals and Corporation, Japans


major chemical firm has invested in a Purified
Terepthalic Acid (PTA) plant at Haldia at an
estimated cost of US$ 355 million.

Key Players
Indian Oil Corporation
Haldia Petrochemicals Limited

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Key players in the petroleum and petrochemicals industry


Indian Oil Corporation
(IOC)

Haldia Petrochemicals
Limited (HPL)

IOC is Indias largest company by sales (value terms).

It owns and operates 10 of Indias 19 refineries and has a refining capacity of 60.2 MTPA (1.3 million
barrels per day) in 2008-09.

It has a refinery at Haldia with an installed capacity of 6 MTPA.

IOC will be investing US$ 623.7 million to improve diesel quality and distillate yield (hydrocracker) at
Haldia, and capacity expansion of the refinery from 6 MMTPA to 7.5 MMTPA; the project is expected to
be commissioned in December 2009.

IOC has signed a memorandum of agreement (MoA) with the WBIDC for setting up a chemical hub in
Haldia at an investment of around US$ 3.2 billion.

HPL is a modern, naphtha-based petrochemical complex located at Haldia, 125 kms from Kolkata; it is a
joint venture project of the Government of West Bengal with The Chatterjee Group, the TATA group
and IOC as major stakeholders.

It has a total capacity equivalent to 520,000 TPA of ethylene.

The company is expanding capacity by about 30 per cent, which will take ethylene production capacity to
670 kilo tonnes per annum (KTPA) from the current level of 520 KTPA.

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Overview of leather industry in West Bengal

West Bengal is one of the leading exporters of


finished leather goods, accounting for almost 25
per cent of the country's leather exports.

Key Players
Khadims
Bata India Limited

As of mid-2006, 75 tanneries were operational,


of which 32 were new.

There are roughly 538 manufacturing units


producing leather goods.

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Key players in the leather industry


Khadims

Bata India Limited

The Khadim group has a significant presence in the footwear segment, especially in the East and South of
India.

It has a manufacturing unit at Kasba Industrial Estate, Kolkata.

The company has multi brand retail outlets in 21 states and has more than 470 exclusive retail outlets
across the country.

Its sales in 2007-08 stood at US$ 49.4 million.

Bata India Limited, incorporated in Kolkata, is the largest shoe manufacturer in India.

It has 35 per cent of the organised footwear market and its retail footprint spans more than 1,250
stores; it sells over 45 million pairs, annually.

Bata has a manufacturing unit in West Bengal.

The company plans to open 240 stores in a span of three years, calling for a minimum investment of US$
87 million.

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Overview of automotive and auto components industries in


West Bengal

The automobile industry in West Bengal is


dominated by original equipment manufacturers
(OEM).

Key Player
Hindustan Motors

The auto components industry comprises of


units manufacturing a range of items from
simple nuts and bolts to complex items such as
shafts, radiators and axles.

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Key player in automotive and auto components industry


Hindustan Motors
Limited (HML)

Hindustan Motors is the flagship company of the C.K. Birla group.

It has a network of over 130 dealers, and is supported by a nation-wide service network and 55
exclusive spare part dealers.

In 2008-09, HMLs sales stood at US$ 166 million.

In West Bengal, it is engaged in the manufacturing of passenger cars (Ambassador and Contessa) and
multi utility vehicles (Trekker, Porter and Pushpak).

The company is developing 314 acres of land near its Uttarpara plant to set up a township with a
residential complex, an IT park and an auto-ancillary park.

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Overview of the iron and steel industry in West Bengal

With more than US$ 22.2 billion worth of


investments in the pipeline, West Bengal has
emerged as a favoured destination for the steel
industry.

Key Players
JSW Steel Limited
SAIL

Its deposits of iron ore have helped attract


new projects.

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Key players in Iron and Steel industry


JSW Steel Limited (JSL)

Steel Authority of India


(SAIL)

JSW Steel Limited is amongst the largest private steel companies in India with a capacity of 7.8 million
tonnes (MT).

The company is setting up a 10 MT mega steel plant at Salboni in West Bengal.

SAIL is the leading steel maker in India, with a turnover of US$ 1.1 billion in 2007-08.

Indian Iron & Steel Company (IISCO), which was a 100 per cent subsidiary of SAIL, has been
amalgamated with the parent company.

The company has an integrated steel plant in Durgapur.

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Overview of the IT and electronics industry

West Bengal is amongst the fastest growing


states with regard to the IT sector.

Around 500 IT and ITeS companies are


operating in the state and they employ more
than 60,000 professionals.

Total export earnings of IT companies located


in Software Technology Parks of India (STPI)
was US$ 754.5 million in 2007.

The IT and ITeS sector is projected to


contribute 15-20 per cent to the states
economy by 2010.

The Tata Consultancy SEZ is expected to be


operational by 2011.

Key Players
Genpact
Cognizant Technology Solutions

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KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Key players in the IT and electronics industry


Genpact

Cognizant
Technology
Solutions
(CTS)

Genpact is a global remote processing operations company that services its clients across the world with its ITenabled services.

It has an 80,000 square feet facility in Kolkata and another new facility is being constructed on a three acre plot
of land at Salt Lake, which would employ up to 1,500 people.

It has also signed to acquire 700,000 sq ft at InfoSpace, an IT/ITeS SEZ developed by Unitech Hitech Structures
with a view to housing 7,000 professionals.

The company has approached the West Bengal government to set up an IT SEZ in Kolkata and has set aside over
US$ 22.2 million to set up the facility.

Cognizant Technology Solutions is a global e-business and application development company.

Cognizant, Kolkata services several large clients from the banking, hospitality (restaurant), healthcare, financial,
airline and information-driven sectors of the global market.

It has signed a memorandum of understanding with Calcutta University, wherein the university will provide
management and software training to a batch of 400 professionals hired by Cognizant, Kolkata.

The company is investing roughly US$ 46 million to expand its facility at Kolkata.

43

KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Annexure
Socio-economic classification (SEC) of urban and rural households

Illiterate

School up to four
years/ literate,
but no formal
schooling

School up to five
to nine years

SSC/HSC

Certificate
course, but not
graduate

Graduate/post
graduate
general

Graduate/post
graduate
professional

Urban SEC grid

Unskilled workers
Skilled workers
Petty traders
Shop owners

E2
E2
E2
D

E2
E1
D
D

E1
D
D
C

D
C
C
B2

D
C
C
B1

D
B2
B2
A2

D
B2
B2
A2

Entrepreneurs: employee none

B2

B1

A2

A2

A1

Entrepreneurs: employee < 10

B2

B2

B1

A2

A1

A1

Entrepreneurs: employee > 10


Self-employed professionals
Clerical/salesman
Supervisory level
Officers/executives: junior

B1
D
D
D
C

B1
D
D
D
C

A2
D
D
C
C

A2
B2
C
C
B2

A1
B1
B2
B2
B1

A1
A2
B1
B1
A2

A1
A1
B1
A2
A2

Officer/executive: middle/senior

B1

B1

B1

B1

A2

A1

A1

Education/Occupation

44

KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Annexure
Socio-economic classification (SEC) of urban and rural households

Rural SEC grid


Type of house
Pucca

Semi
pucca

Illiterate

R4

R4

R4

Literate but no formal school

R3

R4

R4

Up to fourth standard

R3

R3

R4

Fifth to ninth standard

R3

R3

R4

SSC/HSC

R2

R3

R3

Some college but not


graduate

R1

R2

R3

Graduate / post graduate


(general)

R1

R2

R3

Graduate / post graduate


(professional)

R1

R2

R3

Education

Source: Market Research Society of India

45

Kuccha

KEY INDUSTRIES AND PLAYERS


WEST BENGAL September 2009

Annexure
Exchange rate
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

INR equivalent of one US$


46.6
48.3
48.0
45.6
43.7
45.2
45.0
42.0
40.2
46.0

46

WEST BENGAL

September 2009

DISCLAIMER
presentation to ensure that the information is accurate
to the best of IMaCSs and IBEFs knowledge and belief, the
content is not to be construed in any manner whatsoever
as a substitute for professional advice.

India Brand Equity Foundation (IBEF) engaged ICRA


Management Consulting Services Limited (IMaCS) to
prepare this presentation and the same has been prepared
by IMaCS in consultation with IBEF.

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specific products or services that may have been
mentioned in this presentation and nor do they assume
any liability or responsibility for the outcome of decisions
taken as a result of any reliance placed on this
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All rights reserved. All copyright in this presentation and


related works is solely and exclusively owned by IBEF. The
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to any third party except with the written approval of
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indirect damages that may arise due to any act or
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This presentation is for information purposes only. While


due care has been taken during the compilation of this

47

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