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Integrated Machine Tool Parks Proposal for an IMTP near Bangalore

Integrated Machine Tool Parks Proposal for an IMTP near Bangalore

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Integrated Machine Tool Parks Proposal for an IMTP near Bangalore

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  1. Integrated Machine Tool ParksProposal for an IMTP near Bangalore Presentation to IMTMA member companies 5th May 2012 IMTP

  2. 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 IMTP

  3. 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. IMTP

  4. 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. IMTP

  5. 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/Auto-component, Leather, Foundry etc. have adopted the Industrial Park routeto 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 IMTP

  6. IMTP-South An outline What is an Integrated Machine Tool Park? Next slide shows the concept graphically IMTP

  7. Machine Tool Park: an overview Machine Tool companies BOP suppliers Component and sub-assembly mfg units Park admin, management & maintenance Govt interface Foundry Heat treatment Sheet-metal units Service providers CFC and R&D Land & utilities Effluent & waste disposal Commercial partners Trg, Conf. & Exhibition Centre Housing & Guest House IMTP

  8. 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 IMTP

  9. 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, auto-comp, 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 IMTP

  10. 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 IMTP

  11. LOCATION Hosa Narasapura Phase II/III 12 km from Tumkur 75 km (90 min) from Peenya, off NH4 IMTP

  12. IMTP

  13. 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. IMTP

  14. 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 IMTP

  15. IMTP-South A proposal Invite IL & FS to make a detailed presentation of the proposed Machine Tool Park Thank You IMTP