1. Government of Gujarat
Chemtech & Pharma World Expo, Mumbai
Gujarat Chemical, Pharma & Biotech Sector
Presentation by
Industries & Mines Department, Government of Gujarat
23rd February 2011
2. Structure of the Presentation
1 Investment Climate in Gujarat
2 Gujarat Chemical & Petrochemical Sector
3 Petroleum, Chemical and Petrochemical Investment Region
4 Gujarat Pharma, Biotech & CRO
5 Gujarat - Support Infrastructure
6 Vibrant Gujarat - The Global Business Hub
7 Picture Gallery…..
Chemtech & Pharma World Expo 2011 Page 2
3. Investment Climate in Gujarat
► With 16% share in industrial production, Gujarat has only
Fast Growing Economy 0.29%* of mandays lost in the country due to labor trouble
Strategic Location ► The state is a pioneer in Public Private Partnership in Power,
Healthcare, Transport (Ports, Road, Rail and Pipelines), Industrial
Parks and Urban Infrastructure
Land of Entrepreneurs
Leading Companies in Gujarat – Chemicals, Pharma, Biotech
Enduring & Strong Economy
Stable Regulatory Mechanism
World Class Infrastructure
24X7 Power Supply
High-level of Urbanization
Quality Workforce
Proactive & Policy-driven
Governance
* Socio Economic Review of Gujarat 2009-10; Labour Bureau, GOI
Chemtech & Pharma World Expo 2011 Page 3
4. Delhi Mumbai Industrial Corridor (DMIC)
A high impact industrial area within 150 km distance on both sides of the Dedicated Freight
Corridor (DFC), with an investment potential of US$ 90 billion
► Being laid between Delhi and Mumbai, DFC is a new
rail transportation system with high axel, multi
modal and computerized features
► 38% (564 km) of the 1500 km length of DFC will pass
through Gujarat
► DMIC area to be developed as ‘Global Manufacturing
& Trading Hub’ in two phases (6 nodes) – supported by
world class infrastructure & enabling policy framework
► Expected to triple industrial output in five years
► The influence area covers
§ 62% of total area of Gujarat (18 out of 26
districts) within the influence area
§ Investment potential for Gujarat is US$ 30 bn
(1/3 of total investment potential in DMIC)
Chemtech & Pharma World Expo 2011 Page 4
5. DMIC: Proposed Modules in Gujarat
Palanpur Mehsana Industrial
Area
Vadodara-Ankleshwar Industrial Area
Bharuch-Dahej Investment
Ahmedabad Dholera Region
Investment Region
Surat Navsari
Industrial Area
Valsad
Umbergaon
Industrial Area
Dahej PCPIR
Proposed Logistic Park
Chemtech & Pharma World Expo 2011 Page 5
6. Gujarat’s Chemical Sector
State-wise Production of
Major Chemicals
► The chemical sector accounts for 28% of Gujarat’s net
value added in factory sector .
23%
► The State accounts for 51% of India’s production of
major chemicals; with revenues at over US$ 3 bn.
4%
51%
6%
► Gujarat contributes 15% of national chemical exports.
8%
► 30% of the state’s fixed capital investment in 8%
manufacture is in chemical sector.
Gujarat Maharashtra
► Manufacture of chemicals and chemical products Uttar Pradesh Tamil Nadu
contributes to 1/5 of the total employment in industry. Punjab Other States
Source: Gujarat Socio Economic Review 2009-10
Ministry of Chemicals & Petrochemicals Report FY 07
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7. Gujarat’s Petrochemical Sector
► The well diversified chemical industry of Gujarat State-wise Production of Petrochemicals
has complete portfolio of chemical products,
including petrochemicals and downstream,
13%
pharmaceuticals, dyes and intermediates.
10%
► Gujarat accounts for 62% of India’s production of
major petrochemicals.
15%
► The state has 3 cracker complexes at Hazira, 62%
Vadodara and Dahej. Another cracker is being built
at Dahej by ONGC Petro additions Ltd.
► Gujarat accounts for a refining capacity of 86 MMT Gujarat Maharashtra
out of the country’s capacity of 177 MMT as on West Bengal Other States
1.4.2009, i.e. 48%.
Source: Performance Of Chemical & Petrochemical Industry at a Glance
(2001-2007), MOC&F
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8. Gujarat – The Hub for Chemical Industry
Largest Chemical Complexes of the world exist In Gujarat Gujarat’s Contribution to India
Soda Ash 100%
Salt 85%
Polymers 56%
Ethylene 50%
Acetic Acid 50%
Caustic Soda 41%
Phosphatic Fertilizers 38%
Methanol 37%
Nitrogenous Fertilizers 20%
Rich in Raw Materials
► Large production of basic chemicals - caustic soda, caustic potash and chloromethane
► Gujarat accounts for 70% of the country’s production of polymers, PE/PP/PVC.
► Largest supplier of bio fertilizers, seeds, urea and other fertilizers.
Source: Gujarat Socio Economic Review 2009-10, Plastic Association Report
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9. Gujarat has the entire….
Chemical Industry Value Chain
Storage, Packaging & Distribution
Intermediate Functional Value Addition Finished
‘Building
Raw Materials Chemical & Intermediate
Block’
Synthesis Synthesis Processing By Products
Business Support Services
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10. Gujarat has the entire….
Petrochemical Industry Value Chain
Upstream Processing
Exploration and Hydrocarbon Refining &
Shipping Storage Distribution Market
Development Production Blending
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11. Gujarat has the entire….
Petrochemical Industry Value Chain
Downstream Processing
Natural Gas Cracking
`
Intermediate Finished
Functional Value Addition
Hydrocarbon ‘Building Consumer
Feed stocks/ Raw Chemical &
Block’ Products
Materials Synthesis Synthesis Processing
Crude Oil
`
Petrochemical Products
Fiber Rubber
Polymers Plastics
Intermediates Chemicals
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12. Downstream Petrochemical Processing in
Dahej SEZ
Importing Rich LNG in C2-C3-C4
Lean LNG
cryogenic stage Extraction
C2-C3-C4
Extraction Extraction of Ethane
Project of Feed LNG supplied by Lean LNG sent back to
(C2), Propane (C3) and
ONGC Petronet LNG Ltd. Petronet LNG Ltd.
Butane (C4) from LNG
► ONGC Petro additions Limited (OPaL) is building a dual feed cracker in Dahej SEZ.
► OPaL will source 973,000 MTPA feedstock (C2, C3 & C4 cut) from ONGC’s extraction plant and 1.5
MMTPA naphtha from ONGC’s Hazira and Uran operations.
► OPaL’s basic polymer units will produce LLDPE, HDPE, Polypropylene and SBR based on the ethylene
and propylene generated from the cracker.
OPaL to be the first in the world to extract C2+ products from rich LNG in cryogenic stage
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13. Gujarat Petroleum, Chemical and
Petrochemical Investment Region (PCPIR)
PCPIR is a specifically delineated Investment Location
Region planned for the establishment of production
facilities for petroleum, chemicals and petrochemicals
Dahej in Bharuch district,
Location
South Gujarat
Area 453 sq. km.
Focus Sector Chemical & Petrochemical
Abundance of
Natural Resources Quality
Services
Investment Already Made & Export Promotion
Rs.90,000 crore (US$ 20.5 bn) Measures
Committed Petroleum Chemical
and Petrochemical
Investment Region
Legal
Infrastructure Development Rs.3,200 crore (US$ 727 mn) Framework
Well-defined
ONGC Petro additions Limited Infrastructure
Anchor Tenant
(OPaL)
PCPIR: Unique Selling Proposition
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14. PCPIR Advantage
► Concentration of Petroleum, Chemical and Petrochemical estates around PCPIR
► Rich natural resources and feedstock
► All infrastructure - road, rail, port, power, gas, water - in place, with planned up-gradation
► Chemical Port and Storage Facility
► LNG terminal
► PCPIR specific infrastructure - effluent disposal pipelines, solid waste disposal sites
► Quality Work Force, Peaceful Labour
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15. PCPIR – Leading Companies
Employment Generation
► Existing industrial units have created 13,220
direct & 46,270 indirect employment.
► Additional 30,000 direct & 90,000 indirect jobs
will be created in the upcoming units
► Thousands of persons employed in
construction activities of industrial units,
townships, infrastructural works etc.
► The economic and industrial activities in
PCPIR also generate large scale self-
employment opportunities.
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16. Chemicals / Petrochemicals Locations
8 Chemical Product Clusters
14 Industrial Estates
Location
Area
Jamnagar Location
(in hectare)
Mehsana Odhav, Ahmedabad 128
Anand
Naroda, Ahmedabad 363
Vadodara
Vatwa, Ahmedabad 534
Bharuch
Nandesari, Vadodara 272
Ahmedabad
P.C.C. , Vadodara 666
Bhavanagar
Dahej, Bharuch 6131
Valsad
Panoli, Bharuch 1037
Jhagadia, Bharuch 1606
Ankleshwar, Bharuch 1612
3 SEZs Vilayat, Bharuh 1000
Name Area & Status Pandesara, Surat 218
Jubilant Infrastructure Sachin, Choriyasi, Surat 771
160 ha., Notified
Ltd., Bharuch
Jayant Oil & Derivatives 118 ha., Formally
Sarigam & Umergam,
395
Ltd., Vilayat,, Bharuch Approved Valsad
Gujarat Hydrocarbon and 450 ha., In-principle Vapi, Valsad 1164
Energy SEZ, Bharuch Approved
Source: Gujarat Industrial Development Corporation.
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17. Technical Education Infrastructure
Chemical Sector
► Major academic institutions offering chemical
engineering course: Locations of Major Chemical Educational
Institutions
► L.D. College of Engg., Ahmedabad
► Nirma University of Science & Technology,
Ahmedabad
► Government Engg. College, Valsad Gandhinagar
Ahmedabad
► 39 engineering colleges offer course in Chemical Vadhvan
Nadiad
Engineering.
Rajkot Vadodara
► 49 Polytechnics offer courses in Chemical sector. Bhavnagar Bharuch
Prominent ones:
Surat
► Govt. Polytechnic, Rajkot
Valsad
► K.J. Polytechnic, Bharuch
► Govt. Polytechnic, Valsad
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18. Gujarat : Pharma Sector
Key Features Facts Value proposition
• 42% of India’s pharma turnover • Cost-competitive research base
► Manufacturer of maximum number • 22% of India’s pharma exports • Large and skilled workforce
of dosages in India • 5,424 manufacturing licensees • Skills in process chemistry
► Manufactures 80% of IV sets • Employs 55,000 people • Presence of pharma clusters
produced in India • Large domestic market
and Special Economic Zones
Gujarat
Pharma
Industry
Enablers Regulatory
• Established chemical industry • Product patent regime
• Backward linkages
• 310 WHO compliant
• Well-developed medical equipment
manufacturing units
industry
• GMP compliance of
• Well-developed IT capabilities
international standards
• Well-developed pharma machinery
• Government-supported
industry and pharma packaging
incentives and subsidies
• Large number of CROs
• Academic and research institutes
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19. Pharma Industry Value Chain
Research & Development Clinical Manufacturing
Sales
Development &
Design of Research Pre-clinical
Clinical
Phase IV Marketing
Development API Formulation Packaging
Molecule Biology Development Trials
Phase I/II/III
§ Nirma Institute of Pharmacy
Education / Research § C U Shah College of Pharmacy & Research
Institutes § S R Patel College of Pharma Education & Research
§ B K Modi Government Pharmacy College
Research
&
Development
§ Zydus Cadila Healthcare § Torrent Pharmaceuticals
§ Claris Lifesciences § Dishman Pharmaceuticals
Manufacturing § Cadila Pharmaceuticals § Abott Laboratories
§ Intas Pharmaceutical § Wyeth
§ Sun Pharma § Jubilant Organosys
Marketing & Exports
§ Lambda Therapeutics
§ Quintiles
Contract Research Organisations
§ Synchron
§ B A Research
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20. Biotechnology - Industry Value Chain
Integration & Marketing
Basic Drug Transportation
Product Manufacturing & Services
Research Discovery Logistics
Development Sales
To support the value chain, the State has educational infrastructure across all streams to provide trained manpower
Business Areas
Manufacturing
Marketing
Clinical Research
Services
►
R&D
► Industrial Testing
► Sea Water, Marine Algae
Presence across Research ► Environmental
value chain Areas ► Agriculture
Pharmaceutical
► Medicinal & Aromatic Plants
Bioinformatics
Blood Collection & Testing
Agriculture
►
Industrial
Marine
► Healthcare
Sectors
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21. Pharma & Biotech Clusters
Vadodara Cluster
Ahmedabad Cluster
ü Finished Dosages
ü API
ü Biogenerics
ü Finished dosages
ü Biologicals
Savli Biotech SEZ
ü Contract manufacturing
PHARMEZ (Zydus Cadila)
PHAEZ (Cadila Pharma)
Dishman PHARMA SEZ
Ankleshwar Cluster
ü API
ü Formulations
ü Vaccines
Bharuch and Vapi/Valsad Cluster
ü Finished Dosages
ü API
Source: KPMG report on Gujarat Pharma Industry J B Chemicals SEZ
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22. Education & Research Institutes
Pharma & Biotech
► NIPER
► National Research Centre for Medicinal
► Gujarat Cancer Research Institute & Aromatics Plants
► Directorate of Forensic Science ► National Dairy Development Board
► B V Patel PERD Centre ► Gujarat State Fertilizers Corporation
► Zydus Research Centre ► Sun Pharma Research Centre
► North Gujarat University ► MS University of Vadodara
► Department of Biotech, Gujarat ► Anand Agriculture University
University
► Genome Research Centre
► Nirma Institute of Pharmacy
► Sardar Patel University, Vallabh
► CP College of Agriculture Vidhyanagar
► Indian Institute of Advanced
Research, Gandhinagar
► Bioinformatics Institute of India, ► Navsari Agriculture University
Ahmedabad Study Centre ► National Research Centre for
Groundnut
► Central Salt and Marine Chemicals
Research Institute
Gujarat boasts of one of the oldest
► Department of Life Science,
pharmacy colleges, L.M. College of
Bhavnagar University
Pharmacy, established in 1947
► Junagarh Agriculture University providing Diploma, Bachelor and
► Department of Bio Science, Masters in Pharmacy
Saurashtra University
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23. Key Players in Gujarat
Pharma & Biotech
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24. Contract Research Organizations (CROs)
► Gujarat is the preferred destination for off-shoring clinical CRO : Major Players in Gujarat
research activities.
► Gujarat has 40% of CROs in the country.
► Opportunities exist primarily in Phase II to IV trials and
BA/BE studies for generic drugs by pharmaceutical
companies across the globe
► Gujarat provides a large pool of patients and hospitals
conducting clinical research at economical cost
► A strong base of ancillary services such as bio-
informatics and clinical data management, facilitating
R&D and other high-end activities.
► Major transnational CRO - Quintiles - located in
Ahmedabad
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25. Water Management
Water Management Measures
► Dams and Reservoirs
Enhancing
Storage ► Groundwater /Sub-
surface Storage
► Water Desalination
► Recycling, Treatment & Reuse
► Preventing Loss Major
During T&D Future
► Conveyance through Pipelines
Potential
Efficient ► Maintenance of
Supply Existing ► Water Purification
Infrastructure
► Competitive Price
Reducing ► Public Awareness
Usage ► Technology
Chemtech & Pharma World Expo 2011 Page 25
26. Support Infrastructure: Ports
Natural Gateway to the rich land-locked Northern and Central hinterland
► 23% (1600 km) of India’s coastline
► 41 major and minor ports, 2 Container
terminals & 2 LNG terminals
► In 2007-08, Gujarat ports handled 30% of Kandla
total cargo handled by Indian ports Mundra
Navlakhi
► Gujarat aims to capture 3/4 of the Mandvi
northwest hinterland traffic by 2020, from Bedi Khambhat
Okha Sikka Dholera
the present 46%.
Kacchigadh
Bhavnagar Dahej
► Major commodities handled at Gujarat ports
Porbanda Mahuva
► Crude Oil & POL 48% r Veraval Hazira
Pipavav
Magdalla
► Cement & Coal 8.5% each GMB Ports Jafrabad
Chhara
► Foodgrains, Edible Oils, Timber and Private Sector Ports Vansi Borsi
Steel Pipes. Major Port Nargol
Source : Blueprint for Infrastructure in Gujarat (BIG 2020)
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27. Support Infrastructure: Power
► Gujarat to become a power surplus state by
2012 assuring high quality power supply
► Gujarat has installed capacity of 17,960 MW,
including captive generation of 5,106 MW.
5,142 MW is under construction.
► Renewable energy to be the next big focus:
► Current installed capacity of wind power is
1625 MW. To reach 6225 MW by 2020. Power Demand in Gujarat (in MW)
► 500 MW of solar power by 2015 Capacity Required 20545
Capacity Installed 19165
18256
► All the 18000 villages of Gujarat have 24 hour 17390 1,380
(1,088)
power supply 15777
16563
(3,209)
15372 (4,565) 17168
(5,252)
(5,811)
14181
11998
10525
9561
Source : Energy & Petrochemicals Department, Government of Gujarat 2007 2008 2009 2010 2011 2012
Chemtech & Pharma World Expo 2011 Page 27
28. Support Infrastructure: Water
The only State to have inter linkages across rivers (> 20 rivers are interlinked)
Uneven water distribution
addressed through inter–
basin water transfer
Narmada Canal 458 km
Bulk lines completed
Bulk lines in progress
Bulk lines to be taken up
Region having
perennial water sources
Chemtech & Pharma World Expo 2011 Page 28
29. Support Infrastructure: Gas
► Only state in India with Integrated
State Wide Gas Grid.
► Transmission network of 3300 kms
► Accounts for 32% gas consumption in
the country
► Only state in the country to have
LNG terminals (at Dahej & Hazira)
► State owned company, Gujarat State
Petroleum Corporation, owns rich
gas reserves in KG Basin
Source : Gujarat State Petroleum Corporation (GSPC)
Chemtech & Pharma World Expo 2011 Page 29
30. Support Infrastructure: Environment
Gujarat is India’s 1st State to enter into an agreement with World Bank for Carbon Trading
Effluent Treatment Clean Development Mechanism
§ 25 Common Effluent Treatment Plants § Compressed Natural Gas (CNG) initiative to convert
§ 6 Treated Effluent Conveyance Pipelines all buses and auto rickshaws into CNG Vehicles
§ 6 Hazardous Solid Waste Disposal Sites § Solid waste reuse, composting and waste-to-energy
§ 4 Incinerators for Hazardous Industrial Waste programme, making Gujarat eligible for carbon credit
► Established Gujarat Cleaner Production Centre for promotion of Cleaner
Production / Clean Technology, under technical guidance of UNIDO
► MOU signed between GOG, DMICDC and Japanese Companies for
developing Smart Cities & Eco Townships in Dahej and Changodar
► Under Industrial Policy 2009, Gujarat provides financial assistance for
implementation of CP/CT tools
Chemtech & Pharma World Expo 2011 Page 30
