SMART WAYS TO SETUP ELECTRONICS MFG. IN INDIA

Global Electronics Market 2,680 Billion US$ 15.5% Expected CAGR Major Countries in Electronics Production Global Market Size FY 2017 FY 2016 - 2020 USA CHINA GERMANY JAPAN TAIWAN (Source: Persistence market research analysis, 2016 , IBEF 2017) Emerging Trends in Customer Preferences Major Countries in Electronics Consumption Usage of more & more electronics in day to day activities Lighter and more powerful devices Integration of electronics in mechanical equipment's Automation in manufacturing processes USA CHINA GERMANY INDIA BRAZIL

Manufacturing moving closer to markets TOP MANFACTURING CENTERS FACTORS INFLUENCING SHIFT IN TRADITIONAL MANUFACTURING HUBS Easy Market Access To cater to local customer preferences Govt. Policies TOP CONSUMPTION MARKETS USA USA CHINA CHINA JAPAN INDIA GERMANY BRAZIL TAIWAN GERMANY Source: Persistence market research analysis, 2016 , IBEF 2017

Indian Electronics Market 400 Billion US$ Market Size in FY 2020 41.7% Expected CAGR FY 2015 to 2020 70 Billion US$ Market Size in FY 2015 (Source: IBEF, 2017) Preferred Sectors in Indian Market – with % share Source: Persistence market research analysis, 2016 , IBEF 2017

India : Domestic Production and Consumption Huge opportunity for electronics mfg. as demand will be ~ 4 times of production by FY 2022 Source: Persistence market research analysis, 2016 , IBEF 2017

Perception of India as a base for manufacturing Issues Involved Location selection Time Consuming Land acquisition / leasing May miss the market opportunity Availability of power and water connection Obtaining power and water connections Requires local knowledge of contracting and construction Environment Clearance Construction at site Requires knowledge of local regulatory clearances Operating Approval

Solution: Industrial Parks & Special Economic Zones Clear Land Titles Land titles are with the developers who can sub-lease in short time Multimodal Connectivity Located close to National Highway / Sea Port / Airport / Railway lines for easy Logistics and connectivity Environmental Clearance Pre-approved environmental clearance thereby reducing your time for independent procedures Robust Infrastructure Provides plug and play facilities to reduce the time to set a factory in place Industrial City They host a social infrastructure such as living, educational, commercial and entrainment facilities for your skilled manpower

Fiscal Incentives for Electronics Manufacturing - Federal As per Modified Special Incentive Package Scheme (M-SIPS) of Govt. of India, Electronics industries are eligible for the below fiscal incentives : Subsidy for investments in capital expenditure – up to 25% Reimbursement of Federal taxes for capital equipment Reimbursement of Federal taxes and duties for 10 years in select high tech units like Semiconductor fabs and ATMPs Incentives available for 10 years from date of approval Incentives applicable for relocation of units from abroad for state of the art technology

Fiscal Incentives for Electronics Manufacturing – State Govt. As per Govt. of Odisha Industrial Policy 2015 – Priority Sectors, Electronics industries are eligible for the below incentives : 100% VAT/GST reimbursement for the period of 7 years Interest subsidy of 5% per annum on term loans up to US$ 0.15 Million 100% stamp duty exemption for registration or mortgage of the land Electricity duty is waived off for up to 5 MVA for 5 years And more..

Gopalpur Industrial Park SEZ - DTA - Social Infra Spread across 1202 Ha (2970 acres) contiguous land parcel including 1235 acres of SEZ Located on NH5. Midpoint of Bhubaneshwar and Vizag Designed on Walk-to-Work concept Anchor unit with an investments of Rs.541 crores by Tata Steel is operational

Gopalpur Industrial Park Advantages Location & Connectivity Industrial City Environment Clearance Attractive Incentives KM 4 KM National Highway Air Strip 8 KM 8 KM Clear Land Title Multi-modal Logistics Connectivity Plug-n-play Infrastructure Sea Port Railway Siding

Gopalpur Industrial Park IDEAL PLACE FOR ELECTRONICS MANUFACTURING Well connected to markets Readily available Talent Pool Located near Bhubaneswar, India’s top rated smart city Largest producer of metals

Thank you Mr. Rohini Pathi +91 9663100455 Rohini.pathi@tatasteelsez.com Thank you