Key Industries
The economy of Madhya Pradesh is largely natural resource driven, leveraging the state’s advantage in agriculture and mineral resources. The key industries and sectors where Madhya Pradesh has competitive strength include cement, textiles, mining and food-processing.
Cement
Madhya pradesh has 3,625.98 million tonnes of limestone reserves. The districts of Balaghat, Damoh, Dhar, Hoshangabad, Jhabua, Katni, Khargone, Mandsaur, MorenaNarsinghpur, Panna, Rewa, Sagar, Satna and Sidhi are rich with limestone reserves. The state has seven major cement plants, with an annual installed capacity of 15.97 million tonnes. The availability of quality raw material, cheap labour and good industrial infrastructure has made Madhya Pradesh, the perfect choice for cement producers in the country. The sector has a potential of attracting an additional USD 2.5 billion of investment.
Auto and Auto Components
About 60 per cent of the auto industry in MP is dominated by auto component players. The size of the auto component industry in Madhya Pradesh is around USD 306 million. The Union Government of India has sanctioned an auto cluster in the Pithampur industrial area. The Government of India will grant an amount of USD 11 million. Madhya Pradesh has developed an industrial cluster at Pithampur to provide readily available infrastructure for companies to set up manufacturing facilities. This estate spreads over an area of 5,000 hectares.
Textiles
Madhya Pradesh has got the best business opportunity in the field of textile manufacturing. There are a large number of cotton textile mills located in Indore, Ujjain and Burhapur. Some of the key industry players in the state are Bhaskar, Bhilwaras, Indo-Rama, Maikal Oswals, Parasrampuria and S Kumar’s.
Textile Infrastructure in Madhya Pradesh
| Composite Mills |
20 |
| Exclusive Weaving Units |
8 |
| Export-Oriented Spinning Units |
12 |
| Handlooms |
47,000 |
| Looms |
6,500 |
| Power Looms |
43,290 |
| Power Loom Units |
17,524 |
| Rotors |
14,348 |
| Spindles |
14,14,000 |
| Spinning Units |
40 |
Mining
Madhya Pradesh is endowed with significant mineral resources.With 604,000 carats of proven diamond reserves it accounts for 99 per cent of India’s total reserves. It is the sole producer of diamonds in the country.
It also leads the country in the production of copper ore, slate, pyrophillite, diaspore, and is second in production of rock phosphate, clay and laterite. The state has the country’s largest open cast copper mine at Balaghat and the thickest coal seam of Asia at Singrauli coalfield in Sidhi district.
Edible oils
Madhya Pradesh is among the leading producers of edible oils in India and the largest producer of oilseeds among the states. In 2002-03, the state produced 3 million tonnes of oilseeds, representing over 20 per cent of India’s production. The state government has taken steps to facilitate further development of the food processing industry in the state. These include setting up Food Parks with private investment. At present, six Food Parks are under implementation in various parts of the state. Prominent investors in Madhya Pradesh’s edible oil industry are Ruchi Soya, MP Glychem and Vippi Industries. Ruchi Soya is expanding the capacity of its edible oil refinery at Indore from 600 tonnes per day to 1,000 tonnes per day. Prosoya Foods, a subsidiary of ProSoya Inc. Canada has set up a soya milk extraction plant in Madhya Pradesh.
IT and ITeS Infrastructure
Four Software Technology Parks (STP units) to be set up in Bhopal., Indore and Gwalior. There are 38 IT engineering colleges in the state providing education to future IT professionals. Large IT players, such as HCL and Genpact have shown interest in setting up the facilities in the state.
| IT Parks |
Location |
| Crystal IT Park (5,50,000 Sq. ft.) |
Indore |
| Hardware and software technology Park (200 acres) |
Bhopal |
| Software Technology Park (1,00,000 Sq. ft.) |
Indore |
| IT Park (50 acres) |
Gwalior |
Investments
Investment climate in Madhya Pradesh has remarkably grown to offer the best that an investor can think of. The state has an abundance of natural resources, such as water, minerals and ores, power and electricity and labour force. The geographical and climatic conditions are also much encouraging for investment in Madhya Pradesh. A lot of investment opportunities exist in agro-based industry sector. The state government is much considerate about a favourable investment policies and allows heavy incentives.
Within manufacturing, key sectors include chemicals, machinery, transport equipment, non-metallic mineral products, metals and rubber. Among services, transport and community services including hospitals and tourism have the dominant share of investment. The key sectors attracting heavy foreign direct investment are fuels, metallurgical industries, textiles, among others.
Potential Hubs for Investment
As a result of the state’s aggressive incentive policies, a number of sectors are emerging with substantial potential for private investment and business. The most prominent among them are automobiles and auto ancillary products and pharmaceutical sectors.
Automobiles & auto components
Madhya Pradesh’s location at the centre of India has led to its emergence as an important destination for automobile and auto component industry. The industrial belt around Indore has production facilities for a number of automobile manufacturers. A network of vendors supplying auto components to these plants is being established.
While Madhya Pradesh’s current share in India’s total automobile sector output is relatively small, it is expected to witness a significant increase. The projected growth rate for Indian automobile market is over 10 per cent per annum; this presents significant opportunity to the state. Prominent automobile and auto component players present in Madhya Pradesh are Kinetic Motors, Eicher Motors, Bajaj Tempo and Hindustan Motors.
Some investment in the pipeline in this sector are Baja Tempo’s plans to invest US$ 80 million to manufacture heavy and light commercial trucks in technical collaboration with Maschinenfabrik Augsburg-Nurnberg (MAN) of Germany at Pithampur; Kinetic Motors new production line for manufacturing the Italjet range of scooters at Pithampur and Hindustan Motors plan to invest around US$ 16 million over a period of four years to manufacture and supply automobile engines and transmission units to Ford India.
Pharmaceuticals
By leveraging the existing manufacturing base, along with a low cost resource pool Madhya Pradesh has a potential to further develop the pharmaceutical industry in the state. Ranbaxy, India’s leading pharmaceuticals company, has a bulk drug and formulation plant at Dewas in Madhya Pradesh. IPCA Laboratories plans to invest US$ 22 million to expand its formulations capacity at Ratlam and invest US$ 14 million to set up a new export oriented formulations unit in Indore. The plant will come up in the SEZ and will be built according to USFDA specifications. Nicolas Piramal is investing US$ 7 million to invest in its opthalmology products facility at Pithampur. Biofill Pharma plans to invest US$ 25 million in Pithampur and Lupin Laboratories is expanding its manufacturing plant at Mandideep with an investment of US$ 4.5 million. Potential Hubs for Investment
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