AHMEDABAD...moved to Gandhinagar thereafter. In colloquial Gujarati, the city is commonly called...

AHMEDABAD© UK India Business Council, 2009. All Rights Reserved.AOPPORTUNITIES FOR UK PLC IN EMERGING CITIES OF INDIA

AHMEDABAD

Opportunities for UK Plc in Emerging Cities of IndiaAHMEDABAD AHMEDABAD© UK India Business Council, 2009. All Rights Reserved.

Like many emerging cities of India, Ahmedabad has unique qualities that give it is distinct competitive advantage. Both anecdotal evidence and primary research indicate the presence of an ’entrepreneurial DNA’ in the region. This has led to sustained economic self-reliance for the city and its neighbouring regions; moreover, it has positioned the city as one of the foremost global investment destinations.

Ahmedabad compares highly with other cities on entrepreneurship opportunities and scope for earning. Its per capita income (GBP 291 per month) is one of the highest within its class. With an annual market size growth of 8 per cent, employment growth of 4 per cent, and annual credit growth of 12 per cent, Ahmedabad has emerged as a leading business city of India.50

CITY OVERVIEWAhmedabad is the largest city in Gujarat and the seventh largest in India. With a population of 5.8 million, it has many commercial and industrial establishments. Located on the banks of the River Sabarmati, the city is the administrative centre of Ahmedabad district and was the capital of Gujarat from 1960 to 1970; the capital was moved to Gandhinagar thereafter. In colloquial Gujarati, the city is commonly called Amdavad.

Ahmedabad is home to many prestigious academic and scientific institutions. It is also an important base of commerce, industry, and trade in India especially within the sectors of Textiles, Chemicals, Creative Design (including Architecture), Pharmaceuticals and Heavy Industries.

PHYSICAL INFRASTRUCTUREAhmedabad boasts an uninterrupted power supply and widespread electrification (94 per cent).51 The city has good roads and is expanding its transport infrastructure by constructing a Bus Rapid Transport System (BRTS) as part of a planned Integrated Public Transport System. This includes provision for road infrastructure to be implemented jointly by Gujarat Infrastructure Board (GIB), Ahmedabad Municipal Corporation (AMC) and Ahmedabad Urban Development Authority (AUDA), and the State Government. The total length of the BRTS is estimated at 380 km, of which over 20 per cent has been completed. In addition, several urban development projects are underway, including water management, solid waste management, and most notably, the river front development at Sabarmati.

Ahmedabad has traditionally been known as a trading hub and a nerve centre of stock and commodity markets in this part of the world. Add to this, the fact that Gujaratis are by nature – entrepreneurs.Samkit Shah, Owner, International Innovators

50Indicus Analytics (2006)51Indicus Analytics (2006)

03

AHMEDABAD

Contents

03 CITY OVERVIEW

03 PHYSICAL INFRASTRUCTURE

06 SOCIAL INFRASTRUCTURE

09 BUSINESS OPPORTUNITY ANALYSIS

12 POTENTIAL BUSINESS OPPORTUNITIES

18 KEY OBSERVATIONS


Ahmedabad’s Sardar Vallabhbhai International Airport is well connected with the rest of the country and several international destinations. Ahmedabad has a 111km broad gauge rail line. The city is directly connected by rail to several important cities of India, including Mumbai, Delhi, Kolkata, Chennai, Thiruvananthapuram, and Varanasi. Ahmedabad is also well connected to the other major business locations in Gujarat -- Surat and Vadodara (the latter being part of the country’s first national expressway of 93 km). Daily connections via rail and air are available to all major metros in the country.

INDUSTRYThere are around 422 medium and large-scale industries based in Ahmedabad with a total investment of GBP 70.5 billion, providing employment to around 79,904 people. There are over 23,734 small-scale industries generating over 95,591 jobs with total investment of GBP 130 million. Engineering, Textiles, Chemical, and Paper and Paper Products are the major small-scale industry sectors present in the district, with an investment to the tune of GBP 99.32 million. According to Industrial Entrepreneurial Memorandum (IEM) filed from 1988 to 2007, Ahmedabad has shown an investment of GBP 2.2 billion in industries such as Petrochemicals and Refinery, Engineering, Chemicals and Drugs and Pharmaceuticals. From 1988 to 1997, investments by industries in the district amounted to GBP 1.2 billion. Some of the major investments were in Chemicals, Drugs and Pharmaceuticals, Textiles and Metallurgical Industries. The emergence of investments in new sectors such as Infrastructure and Tourism were observed between 1998 and 2007.52

The Gujarat Industrial Policy53 was introduced in 2009 with the objective of transforming the state into an Asian leader, as well as a strong contender globally, in the context of industrial growth. It was formulated with the aim of supporting entrepreneurs at every stage of project implementation. The policy attempts to address industry requirements on a long term basis.54

Ahmedabad is emerging as a cosmopolitan city as well as a hub for financial services. Apart from that, services are also doing well in the city. The increased standard of living is also resulting in migration of people from Bangalore and Delhi.Varun Nath Maira, Principal Secretary, Government of Gujarat

Gujarat is a hub for pharmaceutical manufacturing. Skills are available, the environment is conducive…and industry is supporting it in different ways. We have adopted two ITIs which will supply us with required manpower and talent. Apart from this, there are multiple pharmacy colleges in this area. Gujarat currently has the largest number of pharma graduates on an annual basis across the country.

Varun Nath Maira, Principal Secretary, Government of Gujarat

52 Vibrant Gujarat53 iNDEXTb54 See Table 2

55Parekh (2008)56Chatterjee (2008)57Patel (2008)

TABLE 2 FACILITATING ACCESS To INFormATIoN To BENEFIT ENTrEPrENEurS

Further industrial growth in Ahmedabad is expected to be fuelled by utilizing the existing textile, chemical and pharmaceutical base55; the presence of a large qualified pool of manpower for various industries; the proposed Delhi Mumbai Industrial Corridor (DMIC), Dholera Special Investment Region(SIR) and Gujarat International Finance Tech-city (GIFT) and the newly emergent corridor between Ahmedabad and Pune which has resulted in the growth of the region.

INVESTMENT CLIMATE113 MOUs amounting to GBP 8.2 billion of investments have been signed in Ahmedabad during Vibrant Gujarat: Global Investors Summit (VGGIS) hosted in the years 2003, 2005, and 200756. Seventy MoUs were signed during VGGIS 2007, including an investment of GBP 7.4 billion, in different sectors. Sectors such as Chemicals, Textiles, Tourism, Industrial Parks/SEZ, Agro and Food Processing, Engineering and Auto, and Urban Development have attracted major investment over the last 20 years, leading to Ahmedabad’s emergence as a thriving industrial centre.57

Facilitating speedy access to authentic information for the benefit of entrepreneurs

Improvement of industrial and urban infrastructure

Development of thrust industries: Urban Infrastructure, Oil and Gas, Pharmaceuticals, IT, Biotechnology and Engineering and Auto

Constitution of Gujarat Industrial Promotion Board (GIPB) to provide single window mechanism for large projects

Promotion and development of SEZs and industrial parks; Flexibility of labour laws in SEZs

Power reforms; Power tariffs incentives

Cluster development for small and medium enterprises

Assistance for research and development

Financial assistance for setting up industrial parks; Assistance to critical infrastructure projects

Human resource development and creation of employment opportunities

Creating a global image for Gujarat and its products

Strengthening the existing manufacturing base

Environment protection

0504


HEALTHCAREAhmedabad has forty-three primary healthcare centres, nine community healthcare centres, eighteen government, eight municipal, and six government-aided hospitals. Ahmedabad hosts some of the best private hospitals in the state such as Apollo Hospital, Sterling Hospital, Krishna Heart Centre and Gujarat Cancer Society which are able to provide a high standard of health services. Apollo Hospital in Ahmedabad specialises in cardiology, orthopaedics, urology, oncology, nephrology, gastroenterology and has the largest dialysis unit with in-house reverse osmosis plant. Sterling has state of the art infrastructure to provide high quality services across a range of specialties.

UNIVERSITIES AND EDUCATIONAL INSTITUTIONSA large number of colleges in the city are affiliated to the Gujarat University. Other ’deemed universities’58 in Ahmedabad include the Nirma University of Science and Technology and the Dr. Babasaheb Ambedkar Open University. The Gujarat Vidyapith was established in 1920 by Mahatma Gandhi and became a deemed university in 1963.

Premiere institutions such as the Indian Institute of Management-Ahmedabad (IIM-A), the National Institute of Design (NID), the Mudra Institute of Communications (MICA), the National Institute of Fashion Technology (NIFT), the Entrepreneurship Development Institute of India (EDI), and the Centre for Environmental Planning and Technology (CEPT) are located in Ahmedabad. Many national academic and scientific institutions, such as the Physical Research Laboratory (PRL), Institute for Plasma Research (IPR) and the Space Applications Centre (SAC) of the Indian Space Research Organisation (ISRO), were established in the 1960s largely through the efforts of prominent astrophysicist and industrialist Vikram Sarabhai.

The Ahmedabad Management Association (AMA) is a notable institution established to impart management training and experience to young students and professionals. Gujarat as a whole is known for its entrepreneurial ‘buzz’. A majority of the city’s entrepreneurs are traders as well as those involved in mercantile operations. The city boasts of being the hometown of a number of national and international MNCs of repute in the FMCG, Pharmaceutical and Heavy-Industries space.59

SOCIAL AND PROFESSIONAL NETWORKS In a city where family-run businesses go back generations, the strength of informal social networking cannot be underestimated. Our research indicates the presence of well-entrenched sophisticated yet informal ‘circles of influence’ that facilitate business development.

LOCAL MEDIANewspapers in regional languages (Gujarati and Hindi) include Divya Bhaskar, Gujarat Samachar, Sandesh and Metro. The English papers in the city include local editions of national dailies such as The Times of India, The Indian Express, DNA, The Economic Times, and The Financial Express. A large number of magazines, periodicals and journals are also published in Ahmedabad. The city is home to the historic Navajivan Publishing House - founded in 1919 by Mahatma Gandhi.

LANGUAGE AND CULTUREAhmedabad enjoys a thriving cultural activities and the diverse traditions of various ethnic and religious communities. Popular celebrations and observances include Uttarayan - an annual kite-flying day on 14 January. The nine nights of Navratri are celebrated with people performing Garba - the folk dance of Gujarat, at venues across the city. Other festivals include the annual Rath Yatra procession on the Ashadh-sud-bij date of the Hindu calendar and the procession of Tajia during the Muslim holy month of Muharram. Gujarati is the dominant local language.

CASE STUDY A1: MICA - A BEDROCK OF ENTREPRENEURSHIP

The Mudra Institute of Communications’ Entrepreneurship Development Centre (MICA-EDC) was set up with the support of the Department of Science and Technology (DST), Government of India, with the purpose of fostering entrepreneurship in the communications industry. MICA-EDC administers post-graduate programmes in the area of communications management, offers business support services, including skill assessment, market research and profiling studies, and publications specific to entrepreneurship in the Communication sector. Currently in the process of developing a first of its kind com-cubator (an incubation centre designed specifically for commercialising communications, and to nurture ideas and innovations), MICA-EDC is looking for partnerships in the area of co-development of curriculum, international tie-ups as well as opportunities for collaborations with budding or existing entrepreneurs in their institute.60

Our research found a remarkable and unique array of opportunities across a number of sectors. From an entrepreneur creating waves in the Creative and Media space (through the creation of India’s first exclusive short film company61) to the scion of one of India’s largest packaged food goods suppliers; the institute is a gold mine of innovative ideas.62

“MICA-EDC students are chosen and encouraged to develop business ideas in the creative and communication space. Our program is intensive – it is compulsory for students to create a simulative enterprise through the course of their study with the aim of running it after their time at the EDC. We are certainly interested in partnering with the United Kingdom, considering the strength of both institutional and business entities in the creative and media space”

- Gautam Raj Jain, Executive Vice Chairperson, MICA-EDC

0706

58Deemed university is a status of autonomy granted to high performing institutes and departments of various universities in India. It is granted by the university Grants Commission (uGC) of India.59Bhattacharya (2008)

60Jain (2008)61See Potential Business opportunity A262mICA-EDC

Although I studied and worked in the US for over 10 years… a return to India was always on the cards. Starting my own enterprise has given me the opportunity to make use of my network and to develop a business model addressing a gap in the city of Ahmedabad - to provide technical skills for young professionals...[who] are not always ‘market ready’. We could learn a lot from countries like the UK in this respect. Niral Modi, CEO, TOPS

SOCIAL INFRASTRUCTURE CITY ECOSYSTEM


BUSINESS SUPPORTA number of business support organizations operate in Ahmedabad. These include The Indus Entrepreneurs (TiE), Association of British Scholars (ABS), Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), the Gujarat Chambers of Commerce and Industry (GCCI), and UK Trade and Investment (UKTI).

The GCCI is a notable lobby operating at the city-level. It comprises over 3500 direct members including 250 Trade and Industry Associations and leading Chambers of Commerce from across the state.

ECONOMIC GEOGRAPHYAhmedabad is located at the centre of Gujarat and is flanked by Gandhinagar, Surendranagar, Anand, Kheda and Mehsana. Gandhinagar is by far the most developed area, situated 40 km from the centre of Ahmedabad. The shared border-region of Ahmedabad and Gandhinagar is the proposed location of the Gujarat International Finance-Tech City (GIFT).64

Ahmedabad is home to a biotech cluster; whilst the Ahmedabad-Anand area is an existing and growing ‘knowledge corridor’. Vadodara65, another key emerging city, is now accessible via road through a 120-minute drive on the new expressway that connects the two cities66.

BUSINESS OPPORTUNITY ANALYSISFour key sectors have emerged in Ahmedabad. Each of these sectors is likely to offer several opportunities for UK businesses.

STATE AND STATE AGENCIESThe key state agencies of Ahmedabad are the Ahmedabad Municipal Corporation (AMC) and the Ahmedabad Urban Development Authority (AUDA). The AMC is responsible for the majority of the city’s civic planning, maintenance and upkeep. The AUDA is responsible for organizing, planning and regulating development in an urbanised area of over 150 sq. km.

Two key state agencies that facilitate economic growth are the Industrial Extension Bureau (INDEXTb) and the Gujarat Industrial Development Corporation (GIDC). Both are headquartered in Gandhinagar, the state capital, and both have a regional branch in Ahmedabad.

INDEXTb communicates opportunities available in Gujarat for industry, commerce, trade and other business openings. The GIDC is responsible for identifying and developing locations suited industry.

CASE STUDY A2: GIFT – BUILDING A FINANCIAL DISTRICT FOR GUJARAT

The land between Ahmedabad and Gandhinagar region has been allotted for a Central Finance and Business District (CFBD). The planned CFBD will span an area of 500 acres which has been christened Gujarat International Finance Tech-City (GIFT). GIFT is conceptualised as a global financial and IT services hub, a first of its kind in India, designed to be at or above par with globally benchmarked financial centres. It will be supported by state-of-the-art internal infrastructure, encompassing all basic urban infrastructure elements along with excellent external connectivity. GIFT aspires to catalyse India’s financial services potential by offering global and local financial services firms world class infrastructure to attract top talent. GIFT will target a 6-8% share of the financial services potential in India. This would result in creation of 500,000 direct and an equal number of indirect jobs, requiring up to 91 million sq. feet of real estate office and residential space.63

LIFE SCIENCES CREATIVE & MEDIA ADVANCED ENGINEERING

0908

63GIFT64See Case Study A2: Gift – Building a Financial District for Gujarat 65See Pg. 10766maira (2008)

BUILT ENVIRONMENT


BUILT ENVIRONMENT

Gujarat contributes to over 8 per cent of India’s total engineering output – a figure that is on the rise. The state is considering investments and partnerships in Metallurgy, Heavy Electricals, Industrial Machinery, Auto and Auto Ancillary and R&D in the above mentioned areas.

The availability of skilled and low-cost labour, a readily available talent pool, good electrical supply, connectivity to domestic and international destinations and government support make Ahmedabad an ideal starting point for activities in these sectors.

…[Companies] in the West will look at countries like India more aggressively during periods of financial meltdown because of opportunities that have emerged to help them remain competitive. Ahmedabad has an advantage in sectors such as pharma, ITeS and biotechnology. We are also interested in contract research should there be an opportunity to partner with the UK.Sunil R Parekh, Advisor, CRISIL Risk Solutions

CASE STUDY A3: WATERFRONT DEVELOPMENT VIA PPP

The city of Ahmedabad is spread over 190.84 sq. km. The river Sabarmati flows from north to south in the centre of the city and splits it into almost two equal parts. At present the riverfront lies neglected and is characterised by unimaginative and unplanned development. The potential to provide city-level social infrastructure and recreation facilities lies untapped.

The Centre for Environment Planning and Technology (CEPT) in Ahmedabad has undertaken multiple workshops to spur common understanding across public and private sectors of how the riverfront could be developed.

MAJOR INDUSTRY PLAYERS

Indian Players UK MNCs Other MNCs

Zydus Cadila Healthcare

Torrent Pharmaceuticals

Reliance Industries

Nirma

Cadila Pharmaceuticals

Vadilal Industries

Arvind Mills

Hindustan Gum and Chemicals

Shell LNG Hazira Ltd.

TICS Ltd.

HR Wallingford

Arbur Vetum EXIM Ltd.

QX Ltd.

i-Serve Ltd.

Asian Media Group

BMT India Ltd.

HSBC

Standard Chartered

PriceWaterhouseCoopers

Johnson Pump (India) Ltd.

Concord Biotherm

67See Case Study A3: Waterfront Development via PPP68Puri (2008)69Bora (2008)70Patel (2008)

The city of Ahmedabad is undergoing real estate development in both commercial and residential areas.

SEZs, IT Parks and urban infrastructure account for much of the state spending and inward investment focus; as has been seen in global investors’ summits such as Vibrant Gujarat. These are understood to be the bedrock of other growth sectors such as Manufacturing, Advanced Engineering, and Port Development.

Public Private Partnership based initiatives like the Sabarmati Riverfront Development67 are important built environment projects.

LIFE SCIENCESApart from the presence of large Pharma, Healthcare and Biotechnology based organisations, the sector is expanding rapidly through the creation of SEZs.

The Gujarat Government has been proactive in its relationship with organizations such as the Public Health Foundation of India (PHFI). Ahmedabad hosts a Public Health Institute that addresses an urgent need for developing public health management skills to handle the complex public health challenges facing the country.68

CREATIVE AND MEDIAWhilst this sector has not been singled out by the Government of Gujarat, we believe that it offers opportunities to develop niche offerings, specifically in the areas of architecture, design, screen industries, graphics and film production.69

The presence of India’s premiere institutions in the disciplines of communications, (MICA), architecture (CEPT) and design (NID) amongst others, lead to a creative and highly skilled workforce.70

ADVANCED ENGINEERING

10 11


2. Marketing and expanding service offering to UK-based organisations.

3. Partnering with UK-companies addressing the software and hardware components of consumer robotics.

The opportunity could help create potential linkages with UK industry capacity in the Advanced Engineering sector, within which it will be of interest to industry players in Chemicals.

The opportunity owner has an interest in expansion of activity in the organic pigments and home-textiles market; Increased manufacturing capacity of naphthols, pigment powders and emulsions.

The fi rm is looking for collaborations with UK fi rms in the pigment and Naphthol industry in order to create innovative techniques, products and R&D capabilities.

The opportunity could help create potential linkages with UK industry capacity in the ICT, and Creative and Media sectors.

Within these, the opportunity owner seeks:

1. Graphics and Software Technology input from UK companies with expertise in this area.

A2 was incubated at the Centre for Innovation, Incubation and Entrepreneurship (CIIE) at the Indian Institute of Management, Ahmedabad. Started in August 2006, the fi rm has a turnover of GBP 100,000.

The fi rm works in the areas of artifi cial intelligence, machine vision and web 3.0. It has developed a content-based image management capable of automatic picture understanding and image search. The company plans to build a team of over 30 people by the end of 2010. Their plans include the

development of a GBP 4.5 Million manufacturing plant with a production capacity of 1000 robots per month. By the end of 2009, the company intends to launch four new products around image search and e-commerce.

The company beat 350 other entrants to win a prestigious national entrepreneurship competition in December 2008. The jury for the competition had representation from the Ministry of Science and Technology, Foundation for Innovation and Technology Transfer of the Indian Institute of Technology (Delhi), Draper Fisher Jurvetson and Seedfund.

A1 is a leading pharmaceutical and life sciences company that aims to “become a signifi cant global player by providing high quality, affordable and innovative solutions in medicine and treatment.” It has a three-fold corporate mission:

a. Discover, develop and successfully market pharmaceutical products to prevent, diagnose, alleviate and cure diseases.

b. To provide total customer satisfaction and achieve leadership in chosen markets, products and services across the globe, through excellence in technology, based on world-class research and development.

The fi rm has a strong research orientation with a focus on formulations (human and veterinary), new drug discovery, novel drug delivery, Active Pharmaceutical Ingredients (APIs), analytical research, phytochemistry, biotechnology, plant tissue culture, biosynthesis, genetic engineering, vaccines and immunoglobulins.

The company’s assets include a state-of-the-art formulations manufacturing facility; an R&D set-up manned by a 150-strong scientists’ pool; and an ISO 9002 approved Bulk Actives (Active Pharmaceutical Ingredients) manufacturing facility enabling it to conduct contract research. Its diversifi cations include pharmaceutical machinery manufacturing, hospital disposables and instrumentation, diagnostics, laboratory chemicals, and agro business (plant tissue culture and bio-fertilisers).

The company has global operations across Africa, South-East Asia, Western and Eastern Europe, Latin America, and North America. Its annual exports amount to approximately GBP 31.15 million, about 35-40 per cent of its domestic market.

The opportunity could help create potential linkages with UK industry capacity in the Life Sciences, Environmental Services, and Built Environment sectors.

The company has an interest in merging with or acquiring a mid-sized UK-based pharmaceuticals company at an investment of GBP 15-20 million.

In addition, it is searching for partners for physical infrastructure planning like electricity generation, water management, and effl uent treatment facilities, for its new Pharmaceutical Special Economic Zone near Ahmedabad.

BUSINESS OPPORTUNITY OWNER LINKAGE WITH UK INDUSTRY CAPACITY

POTENTIAL BUSINESS OPPORTUNITIES

12 13

A3 is a manufacturer and exporter of organic dyes pigments and intermediaries. The group company was established in 1965 and deals with bleaching, dyeing, printing and fi nishing of synthetic, cotton and hosiery fabrics. It also supports an in-house chemical manufacturing facility as an independent wing. The facility meets international standards and also has a R&D centre. The current turnover of the group company is GBP 14 million. It employs 500 employees and has an installed production capacity of 100,000 meters/day and 600 Mts./p.a and 300 Mts./p.a of Naphthols and Pigment, respectively.

The group has also set-up a devoted division to manage the export of its product. Almost 70 per cent of the output from this wing is exported. Its main export centres are the United States, Europe, and the Middle-East.

The product range includes:

a) Textiles: Shirting, Suiting, Bottom-ware, Home Textiles;

b) Dyes: Chemicals: Pigments, Naphthols, Emulsions and Pigment Pastes


A4 is a niche fi lm production company started in 2007. The company launched India’s largest short fi lm festival in April 2008 and is now the umbrella owner of four sub brands specializing in short fi lms, short fi lm festivals, entertainment/movie marketing, and production. The company has seven full time employees, and twenty volunteers. In January 2009, the company underwent a change in ownership, with the Founder retaining a 51% stake.

In September 2008, it evolved into an integrated fi lm entertainment company with the launch of its fi rst full-length Hindi feature fi lm. It also became a co-producer for a mainstream fi lm in November 2008. Besides this, it also provides content to the Cine Art Society-Asom (CINEASA) International Film Festival and holds the screening rights of eighteen world-famous feature fi lms.

The company has a host of accolades to its credit. It was honoured with the MICA Award for Creative and Entrepreneurial Excellence in 2008. The company was also featured as one of the top 100 Hottest Start-ups in the TATA NEN’s Hottest Start-ups Awards. The company’s Founder was received the ‘Star Entrepreneur Award’ at the 2nd Indira International Innovation Summit in Mumbai in January 2009. It was also the fi rst company to be incubated at the prestigious MICA-Entrepreneurs Development Cell.

In April 2007, it organised India’s fi rst short fi lms festival. The festival, organised in association with Adlabs India received 189 entries from 18 countries. In May 2009, the festival evolved into the city’s fi rst International Film Festival. The Festival, organised in association with the Films Trust of India, will feature creations from Berlinale 2009, Tampere Film Festival, Cinema of Gujarat, World Cinema (in association (with NDTV Lumiere) and other short-fi lm productions.

The company has also created a popular two-day event focused on showcasing talent in this area in India.

Over the next 3-5 years, the company plans to:

- Produce four feature fi lms for the global audience

- Produce four short fi lms for the international fi lm festival circuit

- Become the country’s premiere short fi lms content provider

- Evolve the Ahmedabad International Film Festival into India’s premiere fi lm festival

- Collaborate with a globally reputed fi lm school to establish a fi lm school in India

Plans to launch a digital media company are also in place.

The opportunity could help create potential linkages with UK industry capacity in the Creative and Media sector.

Within this, the sub-sector it maps back to is Film Production.

The opportunity owner is interested in co-development of fi lms, technology transfer for production, and skills transfer with UK short-fi lm companies (the company is currently in talks with a New York-based fi lm school). It is also open to investment from the UK.

The opportunity could help create potential linkages with UK industry capacity in the Environmental Sciences, and Advanced Engineering sectors.

Within these, the sub-sectors it maps back to are Clean Technologies and Practices, Recycling, and Automotive.

Within the Environmental Sciences sector, the opportunity owner is interested in exploring partnerships for technology to further market-expansion within India and the UK. There is also scope for production of eco-friendly garments and bags for export (manufactured in India and exported to UK and other western European countries).

Within the Advanced Engineering sector, the opportunity owner is interested in sourcing and setting up plants for automotive parts.

The opportunity owner is looking for innovations and technical expertise to set up independent business joint ventures.

A5 is an international business development and consultancy company providing export and import related services to companies engaging in economic transactions between India, Europe, and North America. Established in 2001, the company now has fi fty-fi ve employees and an annual turnover of GBP 280,000. They also have a network of associates across forty two countries.

Initially, the company provided services to Indian companies for developing international business opportunities. Over the years, it has expanded its scope and now provides services to international fi rms entering India as well. These include; representation in India; web development and maintenance, translation services, market introductions, outsourcing of services and products to India, contract manufacturing, and joint ventures amongst others.

Over the past few years, the company has branched into precision engineering and eco-friendly products, which have now become their main growth drivers.

The fi rm has three major business divisions:

Division 1: Business Services1. Financial / Technical / Legal Feasibilities,2. Procurement / Supplier Management,3. Translation / Content Localization,4. Representation / Virtual Offi ces,5. Engineering and Industrial Design,6. Turnkey Project Management,7. OEM / Outsourced Manufacturing,8. Market Visit Support,9. Trade Fair Participation Assistance

Division 2: Precision & Heavy Engineering1. Industrial Fasteners (Standard & Non Standard / Special) 2. Custom Manufacturing of Metal Components 3. Specialized Engineering Plastic Components 4. Carbon and Graphite Parts

Division 3: Eco-friendly Stitched Products and Ethical Employment Articles1. Bags2. T-Shirts3. Shirts4. Home Décor / Furnishings5. Aprons6. Denims7. Recycled Paper Products8. Leather Articles9. Handicrafts

14 15


A6 is a training, staffi ng and consulting fi rm with ITES, BPO and KPO capabilities. Established in 2003, the company has an annual turnover of GBP 1.3 million, with 100 per cent growth per year since inception. Their 135 employees work across Software Development, BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing) teams.

The fi rm’s product range includes Software Development (.net, php, java, Oracle, SAP), Software Training, BPO (Outbound, Inbound Calling, Back offi ce Processing), KPO (Accounting and Legal), Product Development (on Contract or Profi t Sharing Basis). They also have incubation facilities.

The fi rm currently has a large consulting/placement business in the US (based out of Chicago) that is open to UK expansion and representation. It also has strategic and marking partnerships with Microsoft, HP, and IBM in place.

Their client portfolio features names such as IBM, US Cellular, EPay Inc. HP, JP Morgan Chase, AT&T, Microsoft, and Tech Mahindra.

A7 is a fi rm specialising in creating physical infrastructure to facilitate digital content distribution. A one year old fi rm with revenues of GBP 100,000 and twenty employees.

The business model is based on electronic kiosk design and patented software inputs that can be set up in any location The fi rm is looking to bring hi-speed internet services to educational institutions, farmers and the growing section of the youth interested in media, entertainment and gaming.

The fi rm is focusing on three main areas for content creation and distribution: Education, Agriculture, and Entertainment.

Current partnerships include those with the Airport of Baroda, Sikkim University, Manipal University, Agricultural Produce Market Yard Committees (APMC), Planet Education, Pantaloons, HCL, Idea Foundation, NIIT Imperia, Artisan, ICFAI, NIMS, Study Overseas, Toonz Academy, Shah Investors, Crazy Pixels, Global Media Adworks and Pathway Group,. Over the next 4 years, the company plans to install 2000 agriculture, gaming and entertainment based kiosks across the country.

The fi rm is currently leading a pan-Indian effort to provide internet, media and entertainment services in key locations (universities, tier II and III city markets, airports and consumer market hubs).

The opportunity could help create potential linkages with UK industry capacity in the ICT, and Creative and Media sectors.

Within these, the sub-sectors it maps back to are Design, Software, Branding, Gaming, Graphics, and IT.

The opportunity owner is interested in engaging UK partners for game development, and for streaming entertainment and education content.

The opportunity owner is also interested in software and hardware design elements for its kiosks, investment, and technology transfer from

the UK. Given that the product has special leverage in the education sector in India, the opportunity owner is looking at developing content in this fi eld with entities involved in delivering vocational education.

The opportunity could help create potential linkages with UK industry capacity in the ICT sector.

Within this, the sub-sectors it maps back to are IT and BPO.

The opportunity owner is looking for partnerships with fi rms in the ITES, BPO, and KPO sectors.

The opportunity owner has access to prime and available real estate in the city and is hence looking at:

1. Becoming an outsourced location for a number of BPO and KPO operations in the United Kingdom;

2. Expanding the service offering to UK companies looking at the next wave of IT/ITES locations i.e. Ahmedabad;

3. Affi liations with partners to offer product development and incubation facilities in India;

4. Educational partnerships with institutions in the UK to offer their course curriculum in India.

The fi rm has contractual partnerships with two American fi rms and one Australian promotional goods fi rm for their eco-friendly stitching facility. The company also works with a German and a Swedish engineering products supplier as their exclusive quality control and supply chain management partner in India.

A8 is a public limited construction company established in 1982. It employs over 2000 people, and achieved 83 per cent growth to record a turnover of GBP 135 million in 2007-08. The parent company is one of the world’s largest EPC companies and deals in design, testing, tower fabrication, rural electrifi cation, oil and gas pipeline construction, biomass, warehousing, logistics, and power distribution. The parent company has operations in India, Africa, Middle East, and SE Asia.

Initially, the company limited its engagement to industrial construction projects, but in 1999, it entered the infrastructure construction segment. In 2006, the company expanded its scope to undertake construction of power generation projects as well.

Currently, the company deals in four construction segments; industrial, buildings, infrastructure, and power.

Within the industrial segment, it has undertaken construction projects for fi rms dealing in agrochemicals, automobiles, electronics, and textiles amongst others. The company has also undertaken the construction of commercial buildings like IT parks, hospitals, hotels, and housing societies. The company’s project portfolio also includes infrastructure construction works like roads, highways, bridges, drainage systems, and fl yovers.

Over the next few years, the company plans to enter the aerospace segment and engage in infrastructure projects on a Build-Operate-Transfer basis.

The opportunity could help create potential linkages with UK industry capacity in the Built Environment sector.

Within this, the sub-sectors it maps back to are Product Design, Green Buildings, and Sustainable Building Technologies.

The opportunity owner is interested in engaging external consultants to facilitate product design on a per-project basis.

Within its long-term plans, the opportunity owner is also looking to engage sustainable building technologies to enhance its competitive edge.

16 17


Though Ahmedabad has specifi c traditional sectors of strength, there has been greater diversifi cation by third and fourth generation entrepreneurs of leading business houses into more innovative and modern sectors with an emphasis on foreign collaboration.

Ahmedabad (including Gandhinagar) has grown into a signifi cant city-region. Several towns including Vadodara are often cited as satellite towns of this agglomeration. There is a trend towards rapid urban and infrastructure development and industrialisation that could be tapped71 .

There are several specialist education and training institutes generating a signifi cant volume of world-class human capital. The integration of these institutes with major businesses has led to the evolution of niche education and training programmes.

The company’s client portfolio includes well-known brands names like, the Delhi Metro Rail Corporation (DMRC), Sabarmati Riverfront Development, Dupont India, Bajaj Auto, Hindustan Motors, Volvo India, Nirma, Arvind Mills, East India Hotels, IIM-Ahmedabad, Indore Municipal Corporation, Infosys Technologies, L&T, and Maruti Udyog, amongst others.

The company has an in-house contractor development department that facilitates relations with external consultants and companies, who are engaged as and when required. The company, as a policy, engages external product-design consultants on a project-to-project basis as well.

The company places high importance on adhering to industry quality standards. It is currently upgrading its systems to meet the requirements of ISO 14001 and OHSAS 18001. In future, it seeks to further engage sustainable building technologies.

All the above are live business opportunities in Ahmedabad-based organisations. If you are interested in fi nding out more about any of these opportunities, please contact UKIBC who will be able to facilitate an introduction.

KEY OBSERVATIONS

71Dhanani (2008)

18

Opportunities for UK Plc in Emerging Cities of IndiaAHMEDABADAUKIBC New Delhi Fourth FloorStatesman HouseBarakhamba Road, Connaught placeNew Delhi 110001T: +91 99 582 99 247

UKIBC MumbaiLevel 9, Platina, G- Block, Plot C - 59,Bandra Kurla Complex (near Citibank building)Bandra (East), Mumbai – 400 051.T: +91 (0) 22 3953 0504

UKIBC London 12th Floor Millbank Tower,21-24 Millbank, LondonSW1P 4QPT: +44 (0) 207 592 3046

Whereas every effort has been made to ensure that the

information given in this document is accurate, neither

UK Trade & Investment nor its parent Departments (the

department for Business, Enterprise & Regulatory Reform and

the Foreign & Commonwealth Office), accept liability for any

errors, omissions or misleading statements, and no warranty

is given or responsibility accepted as to the standing of any

individual, firm, company or other organization mentioned.

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