20 November 2018

Realty Biz

Homing in on Industry

A JLL report offers some real estate trend spotting at India’s eight top manufacturing hubs

The Indian manufacturing sector has registered moderate growth in the past, even in times when the global economy was going through a major slowdown. The country places high priority on infrastructure development, thus offering high growth opportunities for a wide range of manufacturing industries and a wide range of untapped opportunities in other sectors. The entry of foreign manufacturing companies with technology-based orientation is helping India create a core and contemporary manufacturing sector fed by ancillary manufacturers that rely on simple technical skills. As India becomes a favoured destination for global manufacturing majors the industrial real estate landscape is changing. International property consultancy JLL India, in its latest research report 'Manufacturing Destinations of India: A Real Estate Overview’ excerpted below looks at cities which are witness to accelerated real estate development on account of the growth of industries there.

 

Ahmedabad: Ahmedabad has been the major hub for the pharmaceutical industry in India for a long time with the presence of large players such as Zydus, Intas and Claris. However, after the inauguration of the Tata Motors plant for the manufacturing of the ‘Nano’ in 2010, it emerged as a major manufacturing destination in the automobile, engineering and FMCG sectors as well. Some of the major players that have forayed in the market since then include Ford Motors, Bosch, Hitachi Hi-rail, Colgate Palmolive and Gardner Denver, to name a few. Excellent infrastructure, including the availability of natural gas, reliable power and excellent road connectivity, has been the major advantage for Ahmedabad as a manufacturing destination. Several manufacturing companies such as the Adani Group, Reliance Industries, the Nirma Group of Industries, Arvind Mills, Claris Lifesciences, Cadila Pharmaceuticals, Shell, Vadilal Industries, Rasna, Bosch Rexroth, Stork and Rollepaal, are present in Ahmedabad. Ahmedabad has well-developed infrastructure, which is conducive to the growth of manufacturing industries. The submarkets are well connected by road, rail and air transport system with the rest of the country and other parts of the state. Ever since Tata Motors moved its manufacturing plant into Sanand near Ahmedabad in early 2010, the city gone into top gear in terms of growth in the manufacturing sector. The State industrial body (GIDC) proactively acquired more than 1,500 hectares of land adjoining the ‘Nano Plant’ in Phase 1, foreseeing the investments that would follow. The focus was to develop Ahmedabad as a major automobile and ancillary cluster in India. Ford India’s entry in Sanand in 2011 with a proposed investment of Rs 4,000 crore and a direct employment proposal of 5,000 persons was another major milestone. A host of other industries followed, not only in the automobile sector but across sectors. Notable examples are Hitachi Hi-Rail, Hyundai Engineering, Bosch, Inductotherm, Nestle, Colgate Palmolive and Beiersdorf AG, to name just a few. Additionally, a Special Investment Region (SIR) is being developed in Mandal–Bechraji (laid out over 8 villages), about 90 km from Ahmedabad. For this initiative, the Government of Gujarat and JETRO (the Japanese Government's business promotion arm) has joined hands to develop a Japanese Industrial Cluster. Maruti Suzuki, the country’s largest car manufacturer, has committed a greenfield manufacturing plant there with an investment to the tune of Rs 4,000 crore. Honda Motorcycle and Scooter India Private Ltd (HMSI) has also announced an investment of Rs 1,100 crore for a two-wheeler manufacturing plant. Other major industrial occupiers who have already been allotted land in this park include Mitsubishi Aluminium, ROKI Minda and TS Tech Co. Ltd. The modus operandi of the Gujarat Government has to provide enabling infrastructure like good connectivity, uninterrupted power, quality water and industrial gas to the industries, rather than just offering incentives to lure industries. Even with minuscule incentives, the state has successfully managed to attract significant investments into the manufacturing sector. According to DIPP data, Gujarat saw industrial investments of Rs 70,172 crore from 2010 up to October 2013 in the form of IEM (Industrial Entrepreneur Memorandum) or actual projects delivered on the ground, which is more than 1/3rd of the country’s share in this period.

 

MAJOR MANUFACTURING OCCUPIERS 

 

Occupier

 

Occupier Type

 

Area (Acres)

 

Location

 

Tata Motors

 

Automobiles

 

1,250

 

Sanand

 

Ford Motors

 

Automobiles

 

450

 

Sanand

 

Gardner Denver

 

Engineering

 

4.8

 

Changodar

 

Inbisco

 

FMCG

 

21

 

Sanand

 

Alstom Bharat Forge

 

Engineering

 

60

 

Sanand

 

Teva

 

Pharma

 

50

 

Sanand

 

Nestle

 

FMCG

 

80

 

Sanand

 

Colgate Palmolive

 

FMCG

 

25

 

Sanand

 

Oerliekon

 

Engineering

 

25

 

Sanand

 

 

 

Chennai: The fourth most populous metropolitan area in India Chennai’s economy has a broad industrial base, spanning the automobile, computer, technology, hardware manufacturing, financial services and health-care industries. Chennai is India‘s second largest exporter of software, IT and ITeS. The city, accounting for 60 per cent of the country‘s automotive exports, is rightly coined ‘the Detroit of Asia’. Chennai‘s economic development has been closely tied to its port and transport infrastructure, which is considered as the best infrastructure in India. The city is served by two major ports—Chennai Port and Ennore Port. Chennai Port is India‘s second busiest container hub, handling general industrial cargos and automobiles, among others. The Ennore Port handles cargos—such as coal, ore and bulk—and break bulk cargos. The major industrial locations of Sriperumbudur and Oragadam receive investment from major MNCs, such as Renault Nissan, Daimler and Yamaha. The availability of cheap government-subsidised land in and around Chennai is limited, and the government is acquiring additional land to meet the growing demand. Leading private developers such as Ascendas and Mahindra World City have also made investments to create manufacturing zones around Chennai.

 

MAJOR MANUFACTURING OCCUPIERS 

 

Occupier

 

Occupier Type

 

Area (Acres)

 

Location

 

Renault Nissan

 

Automobiles

 

1,000

 

 Oragadam

 

Daimler

 

Automobiles

 

400

 

 Oragadam

 

Yamaha

 

Automobiles

 

400

 

 Oragadam

 

Ashok Leyland Nissan

 

Automobiles

 

Multiple

 

Multiple

 

Royal Enfield

 

Automobiles

 

50

 

Oragadam

 

Michelin

 

Automobiles

 

300

 

Thervoy Kandigai

 

Philips Carbon

 

Automobiles

 

80

 

Thervoy Kandigai

 

Amway

 

FMCG

 

50

 

Nilakkottai

 

 

Bengaluru:  The state capital of Karnataka is strategically located in South India. After India’s independence, during 1950s to 1960s, major public sector heavy industries such as BHEL, Bharat Earth Movers Limited (BEML), Hindustan Machine Tools (HMT) and Indian Telephone Industries (ITI), as well as knowledge-based production facilities such as HAL started their operations in Bengaluru. During the 1980s–1990s period, the city evolved as a favourite destination for IT and IT-enabled services (ITeS). The steady rise of Bengaluru as a global manufacturing hub is supported by the presence of leading education and research institutions; a large number of large-scale and knowledge-based public sector industries and small-scale industries; a highly proficient English-speaking and relatively economically large labour pool; and a stable and liberal socio-political environment. At present, the government is developing more industrial areas in and around the city to attract investments. It has also in the recent past emerged as a favourite destination for the automotive industry.

 

MAJOR MANUFACTURING OCCUPIERS 

 

Occupier

 

Occupier Type

 

Area (Acres)

 

Location

 

Volvo

 

Automobiles

 

122

 

Old Madras Road

 

LM Wind Power

 

Engineering

 

40

 

Tumkur Road

 

Honda

 

Automobiles

 

96

 

Narasapura

 

Scania

 

Automobiles

 

35

 

Narasapura

 

Mahindra Aerospace

 

Aerospace

 

25

 

Narasapura

 

Biocon

 

Pharmaceuticals

 

90

 

Bommasandra

 

Toyota Kirloskar

 

Automobiles

 

432

 

Bidadi

 

Bosch India

 

Automobiles

 

97

 

Bidadi

 

 

 

 

Delhi NCR: The manufacturing sector plays a vital role in the economic development of the National Capital Region. The region has a wide variety of industrial products, including high value and high technology goods. The manufacturing sub markets of the NCR region are regulated under the development norms of a few nodal authorities which include the Department of Industries, the Delhi Development Authority, Delhi State Industrial Development Corporation (DSIDC), Haryana Urban Development Authority (HUDA), Rajasthan State Industrial Development and Investment Corporation (RIICO) and Uttar Pradesh State Industrial Development Corporation (UPSIDC). The development of the industrial clusters and their supporting infrastructure is undertaken by these nodal authorities or by a few cooperative societies. Several manufacturing companies such as Maruti Suzuki, Ranbaxy Laboratories, Escorts Group, Honda, GSK Consumer and Nestlé India are present in the NCR. NCR has been able to attract sizable investment from multinational companies, large business houses, foreign investors, nonresident Indians and small-scale entrepreneurs. NCR is an investor-friendly region and offers a rich reservoir of skilled, motivated and relatively low-cost workers, with good infrastructure and harmonious industrial relations.

 

MAJOR MANUFACTURING OCCUPIERS 

 

Occupier

 

Occupier Type

 

Area (Acres)

 

Location

 

Maruti Suzuki

 

Automotive

 

600

 

Manesar

 

Ranbaxy Laboratories

 

Pharmaceuticals

 

9.1

 

Gurgaon

 

Honda

 

Automotive

 

52

 

Manesar

 

Escorts Group

 

Engineering  Conglomerate

 

250

 

Faridabad

 

Nestle India Limited

 

FMCG

 

7

 

Samalkha,Haryna

 

GSK Consumer

 

Consumer Health Care

 

140

 

Sonipat

 

 

 

Kolkata: With the inclusion of its metropolitan area, Kolkata is the third most populous city in India and the main commercial and financial hub of the eastern and north-eastern part of the country. Developments such as the huge leather complex that has been set up at Bantala and the export-processing zone that has been built in Falta, have paved the way toward the city being an industrial hub. In addition, industrial estates in Kalyani, Taratala, Dankuni, Kasba and Howrah, with specialised sectors such as the country‘s first toy park and a gem and jewellery park, are spread throughout the metropolitan area. Kolkata‘s economic development has a close relationship to its port and transport infrastructure. There are two distinct dock system—a river port at Kolkata with 28 berths and a deep water port at Haldia with 12 berths. Kolkata port handles containers and industrial cargo while Haldia Port handles bulk cargos such as coal, ore and oil. The proposed draft of an industrial development policy aims to leverage the core competence and the state’s rich mineral base for the promotion of manufacturing such as engineering, chemicals, petrochemicals and its downstream industries, along with the introduction of the latest technology and foreign direct investment (FDI). Sunrise and high-tech industries will be promoted through policy and business process reform to create ease in doing business by the creation of a single window system for industrial start-ups. By doing this, the government will take a giant step toward growth.

 

MAJOR MANUFACTURING OCCUPIERS 

 

Occupier

 

Occupier Type

 

Area (Acres)

 

Location

 

Cadbury, PepsiCo, Rollick,and others.
(Sudharas Food Park)

 

Food Processing

 

100

 

Dhulagari

 

Elkos, Seiko, among
others. (Poly Park)

 

Poly processing

 

60

 

Dhulagari

 

Jute Mills (Reliance,
Auckland, Alliance,
Weaverly, among others

 

Jute industries

 

400

 

Multiple

 

Coca Cola

 

Food Processing

 

20

 

Dankuni

 

Himadri Chemicals

 

Chemicals

 

40

 

Multiple

 

Jayashree Textiles (Aditya Birla)

 

Cotton

 

30

 

Rishra

 

Britannia Industries

 

FMCG

 

10

 

Taratala

 

Century Ply

 

Plywood

 

35

 

Multiple

 

Eveready

 

Battery plant

 

12

 

Multiple

 

Keshoram Industries

 

Cotton

 

20

 

Khidirpur

 

 

 

Mumbai: The manufacturing activity in Mumbai region is now primarily concentrated in the MIDC areas of Thane, the Thane-Belapur belt [Kalwa, Airoli and Trans-Thane Creek (TTC)], Taloja, Patalganga and Ambernath, and the non-MIDC areas of Patalganga, Khopoli and Pen, among others. Most of these areas are the first MIDCs that were developed in the early 1960s to promote chemical, engineering and other auxiliary industrial units.The Thane-Belapur belt houses large-sized companies such as Mukund Steel, BASF, Siemens, RPG Life Sciences, Reliance Life Sciences and Nycomed. The areas of Taloja and Patalganga have more of the chemical, pharmaceutical and food product companies, such as Kellogg’s, Aditya Birla, Asahi Glass, Kingfisher, Reliance Industries and Cipla. Some of these areas were considered out-of-town locations for the industries to survive.As the cities of Thane, Mumbai and Navi Mumbai developed, some of these areas changed into real estate developments. However, the state industry body, MIDC, has been proactive and is in the process of acquiring more land parcels in Patalganga, Ambernath and other surrounding areas.

 

MAJOR MANUFACTURING OCCUPIERS 

 

Occupier

 

Occupier Type

 

Area (Acres)

 

Location

 

Petronas

 

Lubricants

 

24

 

Patalganga

 

Cipla (three units)

 

Pharmaceuticals

 

40

 

Patalganga

 

Ruchi Soya

 

Food processing

 

40

 

Patalganga

 

Aditya Birla Nuvo

 

Spatiality carbon

 

50

 

Patalganga

 

Bombay Dyeing

 

Polyester

 

30

 

Patalganga

 

United Breweries

 

FMCG

 

25

 

Taloja

 

Hindustan Copper

 

Metal and engineering

 

20

 

Taloja

 

Kellogg’s

 

Food processing

 

60

 

Taloja

 

Lubrizol

 

Chemicals

 

22

 

Turbhe

 

 

 

Hyderabad: The Deccan city is a diversified economic zone with varied industries, including life sciences, FMCG and automobiles. During the 1950s–1960s period most of the Indian premier public enterprises were established in Hyderabad, giving an edge to the traditional manufacturing and bringing in technological advancements. The Andhra Pradesh Government, through its New Industrial Policy, aptly titled ‘Industrial Investment Promotion Policy (IIPP) 2010–2015’, places major emphasis on the creation of quality infrastructure; promotion of manufacturing investment zones and industrial corridors; and special focus on micro-sized, small-sized and medium-sized enterprises (MSMEs).The city has greatly benefitted from setting up world-class infrastructure providing connectivity to the areas nearby, promoting industrial corridors along the national highways connecting to Nagpur, Bangalore, Mumbai and Vijayawada.The new policy is a good sign for Hyderabad, as more industries would provide a perfect balance to the IT boom in Hyderabad, where IT is still the dominant industry. Manufacturing would greatly strengthen and take advantage of the world-class infrastructure developed by the government and would provide employment and opportunities to a larger base of the economy.

 

MAJOR MANUFACTURING OCCUPIERS 

 

Occupier

 

Occupier Type

 

Area (Acres)

 

Location

 

Tata Advanced Systems

 

Aerospace

 

50

 

Adibatla

 

P&G

 

FMCG

 

170

 

Kothur

 

AugustaWestland

 

Aerospace

 

10

 

Shamshabad

 

Mahindra and Mahindra

 

Automobiles

 

100

 

Zaheerabad

 

Alexandrai Biotech Park

 

Biotechnology

 

300

 

Shamirpet

 

ICICI Knowledge Park

 

Biotechnology

 

200

 

Shamirpet

 

Piramal Healthcare

 

Pharmaceuticals

 

10

 

Medak

 

 

 

Pune: The western Maharashtra city has been the favourite industrial destination since the inception of the Pimpri-Chinchwad Municipal Corporation (PCMC) in the 1960s. Furthermore, the Maharashtra Industrial Development Corporation (MIDC) stimulated the growth of industries in Pune by acquiring land and providing the requisite infrastructure. Talegaon and Chakan are home to automotive giants such as Volkswagen, Mercedes Benz, Mahindra &Mahindra and General Motors, whereas Ranjangaon hosts all kinds of industries, such as automotive, white goods, jewellery, paints, food products and chemicals. The growth was aptly supported by trained manpower supplied by the various local and international educational institutions, the low cost of real estate and their proximity to the business capital of Mumbai and the port. As a result, the city has established itself as one of the most preferred locations in India for industrial development.

 

MAJOR MANUFACTURING OCCUPIERS 

 

Occupier

 

Occupier Type

 

Area (Acres)

 

Location

 

Volkswagen

 

Automobiles

 

600

 

Chakan

 

Mahindra & Mahindra

 

Automobiles

 

750

 

Chakan

 

Bridgestone

 

Automobiles

 

200

 

Chakan

 

DaimlerChrysler

 

Automobiles

 

100

 

Chakan

 

Sany India

 

Heavy Engineering

 

100

 

Chakan

 

Bajaj Auto

 

Automobiles

 

250

 

Chakan

 

Fiat

 

Automobiles

 

220

 

Ranjangaon

 

Joseph Cyril Bamford (JCB)

 

Heavy Engineering

 

110

 

Talegaon

 

General Motors

 

Automobiles

 

300

 

Talegaon

 

John Deere

 

Automobiles

 

112

 

Sanaswadi

 

 




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