Transcript Integrated Machine Tool Park – South An outline

Integrated Machine Tool Parks
Proposal for an IMTP near Bangalore
Presentation to IMTMA member companies
5th May 2012
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IMTP-South A proposal
Why an Integrated Machine tool Park?
The growth potential for machine tool industry is vast.
Production 2012-13 (exp.): Rs.4500 cr
Projected Production by 2016-17: Rs. 13,000 cr
Three-fold growth in 5 years
Requires capacity expansion through:
•Expansion of existing units
•Setting up new units
•Simultaneously, expansion of entire supply chain
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IMTP-South A proposal
The South region accounts for 50% of production
•Present: Rs. 2500 cr
•By 2016-17: est. Rs. 7000 cr, assuming 50% share
This expansion requires:
•Land
•Infrastructure
•Investment
Similar growth potential exists for other machine tool
regions in the west and north.
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IMTP-South A proposal
What is the current position?
•Many large units are expanding at Dobbaspet
•Some have real estate around Hosur for expansion
•However, by and large, machine tool companies and
ancillaries, SMEs are hampered by non-availability of land.
•High cost of land (around Rs.10+ cr/acre) puts it beyond
most units to acquire land near Bangalore.
•Infrastructure is weak; Regulations on land acquisition
and use takes long time for setting up units.
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IMTP-South A proposal
Therefore, any substantial expansion of machine tool units
and its supply chain requires a new approach to address
these constraints
What is the alternative?
Other industries in India like IT, Textiles, Auto/Autocomponent, Leather, Foundry etc. have adopted the
Industrial Park route to expansion
Tirupur Textile Park has 400+ units, annual turnover Rs
5000+ cr.
Machine tool industry must look at this route for its growth
and expansion
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IMTP-South An outline
What is an Integrated Machine Tool Park?
Next slide shows the concept graphically
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Machine Tool Park: an overview
Component and
sub-assembly mfg
units
Service
providers
Commercial
partners
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Machine Tool
companies
CFC and
R&D
BOP
suppliers
Park admin,
management &
maintenance
Govt interface
Foundry
Heat treatment
Sheet-metal
units
Land & utilities
Effluent & waste
disposal
Trg, Conf. &
Exhibition
Centre
Housing &
Guest House
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IMTP-South A proposal
IMTMA has worked on some details for the IMTP in the
south. Broad parameters are as follows:
•Total land area proposed: around 300 acres
•Area net of infrastructure area/green area etc.: ~ 210
acres
•Area for Estate admin/Trg/Conf/Exhibition/Essential
residential/Medical/Hostel/Hotel/CA: 10 acres
•Area available for allocation to mfg. units: ~ 200acres
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IMTP-South A proposal
Target occupation:
•2-3 machine tool units
•10 medium/large ancillaries mfg sub-systems
•75 SMEs (from fabrication/components/sub-assemblies)
•10 Service units: Heat treatment/Painting/Packing etc.
•Other high-tech user-mfg units (die/mold, tooling, aerospace, autocomp, instrumentation, medical etc.) – for synergy, limited no.
•10-15 stockists of raw materials/standard parts/sub-systems
•Logistics units (Transport, IMPEX, travel, etc.)
•CT, Customs & Excise, regulatory agencies, Bonded Warehouse
•Banks and Financial Institutions
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IMTP-South A proposal
Parameters for location:
•Land at reasonable price;
•After development of infrastructure, affordable cost to
users on allotment
•Quick access from existing machine tool clusters
•KIADB support in acquisition process
•Alternative, ready KIADB location without need for fresh
acquisition
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LOCATION
Hosa Narasapura
Phase II/III
12 km from Tumkur
75 km (90 min)
from Peenya,
off NH4
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IMTP-South A proposal
What is the likely requirement?
IMTMA ran an informal questionnaire among members to
find interest of companies and extent of land required.
Response:
14 companies have responded with a requirement of 56
acres, 4000Kw.
Many others, including foreign machine tool companies
have expressed interest.
Land possibility?
GoK have assured support and is keen to sign an MoU.
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IMTP-South A proposal
•Likely land cost? Estimated at Rs. 60-70 L per acre, fully
developed with infrastructure and amenities, ready for
construction by manufacturing units. Allow for variation!
Next steps:
•Sign an MoU with the GoK for the project
•Firm up the companies who will be promoters of the IMTP
•Get the draft MoA and SPV company structure ready for
registration.
•Discuss with KIADB/KUM and finalize location
•Prepare a Project Proposal and submit to KUM
•Prepare a DPR for implementation
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IMTP-South A proposal
Invite IL & FS to make a detailed presentation
of the proposed Machine Tool Park
Thank You
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