Our Expertise

Value Chain

Production / Storage / Processing / Traders / Retailers / Consumers / Spare parts & Services /   OEMs

India Offers

• 10th-largest arable land resources in the world; 20 agri-climatic regions; 15 major climates in   the world; 46 of the 60 soil types in he world
• 1st largest producer of spices, pulses, milk, tea, cashew and jute; Mango, Banana
• 2nd largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton and oilseeds
• 2nd largest producer of fruits and vegetables

Market

• India Export – US $ 39 Billion (2018-19)
• Sector growth – 2%
• Workforce – 700 Million
• Country’ GDP – 19%
• Farm Equipment – US $ 6.8 Billion
• Machinery Market growth – 8.9% CAGR

Government Agencies

• MoA&FM (Ministry of Agriculture & Farmers Welfare);
• NHB ( National Horticulture Board);
• MoHI&PE (Ministry of Heavy Industries & Public Enterprise;
• DoA&NF (Department of Organic Agriculture & Natural Farming)

Government Intentions

• India export – US $ 60 billion by 2022
• Agricultural Marketing Infrastructure (AMI) – 4 million MT of storage capacity
• 400 Marketing Infrastructure projects by 2019-20 7
• Double farm income by 2022

Clusters

Maharashtra (Pune, Aurangabad, Ahmedabad, Nasik), Tamil Nadu (Chennai)

What MCG offers

• • Information & Strategic Planning
  • Identifying trends, opportunities and competition for current products
  • Expanding by identifying new growth avenues and markets
  • Ground Work

• Growing through Joint Ventures/ Acquisitions
• Establishing and monitoring performance of dealer networks
• Identifying the right customer segments and deciphering their needs and preferences
• Tying-up with the right manufacturing partner
• Setting up a production facility

Players

Foreign– Hindustan Unilever Ltd., Nestle, Monsanto India, DuPont India, Lemken India Agro   Equipments Pvt. Ltd., Advanta Ltd., Kubota, SDF Group, Kuhn, Lovol, Daedong, Deere&   Company, Claas, CNH Industrial, AGCO

Domestic–  Nuziveedu Seeds, Amul, Godrej Agrovet, Rallies India, Britannia Industries Ltd., NSL, GDP   Crop Science, Nupro, Rei Agro Ltd., Escorts Group, TAFE, VSt Tillers Tractors,   Mahindra&Mahindra

Value Chain

Start ups / Importers / Machinery / Parts & Services / OEMs

India Offers

• India ranked 5th in installed renewable energy capacity. India ranked second among the   emerging economies to lead to transition to clean energy.
• Installed renewable power generation capacity posting a CAGR of 19.78 % ( FY2014–18)
• The focus of Government of India ratified the Paris Agreement.
• Its energy demand is expected to reach 15,820 TWh by 2040

Market

• Total renewable installed capacity (excluding large hydro) in India stood at 75.06 GW.
• Generation capacities
  • Biomass Gasifiers – 163.37 MWeq
  • SPV systems – 767.51 Mweq
  • Waste to Energy – 175.28 Mweq
• Investments/ Developments
  • FDI (2000-2018) – US $ 7.48 Billion
  • Investment in Renewable Sector in India since 2014 – US $ 42 Billion
  • 2018 Investments – US $ 11.1 Billion
  • Inter-state distribution of wind power started in August 2018.
  • In the first half of 2018, India installed 1 MW of solar capacity every hour.
  • Clean energy made up 27 %of US$ 4.4 billion merger and acquisition (M&A) deals which took place in India’s power sector in 2017.
  • In March 2018, ReNew Power finalised a deal estimated at US$ 1.55 billion to acquire Ostro Energy and make it the largest renewable energy company in India.
  • World’s largest solar park named ‘Shakti Sthala’ was launched in Karnataka in March 2018 with an investment of Rs 16,500 crore (US$ 2.55 billion).
  • Solar sector in India received investments of over US$ 10 billion in CY 2017.
  • Private Equity (PE) investments in India’s wind and solar power have increased by 47 % 2017 (January 1 to September 25) to US $ 920 million, across nine deals, as compared to US $ 630 million coming from 10 deals during the corresponding period in 2016**.
  • As of March 2019, Eversource Capital, a Joint venture of Everstone and Lightsource plans to invest US$ 1 billion in renewable energy in India through its Green Growth Equity Fund

Government Agencies

• MoNRE (Ministry of New & Renewable Energy); National Institute of Solar Energy

Government Intentions

• A new Hydropower policy for 2018-28 has been drafted for the growth of hydro   projects in the country.
• The Government of India has announced plans to implement a US$ 238 million   National Mission on advanced ultra-supercritical technologies for cleaner coal   utilisation.
• The Ministry of New and Renewable Energy (MNRE) has decided to provide   custom and excise duty benefits to the solar rooftop sector, which in turn will   lower the cost of setting up as well as generate power, thus boosting growth.
• The Indian Railways is taking increased efforts through sustained energy   efficient measures and maximum use of clean fuel to cut down emission level by   33 per cent by 2030

Cluster

Rajasthan, Gujarat, Andhra Pradesh, Telangana, Maharashtra ( Aurangabad,   Ahmedabad, Nasik), Tamil Nadu (Chennai)

What MCG offers –

• Information & Strategic Planning
• Identifying trends, opportunities and competition for current products
• Expanding by identifying new growth avenues and markets

Ground Work

• Growing through Joint Ventures/ Acquisitions
• Establishing and monitoring performance of dealer networks
• Identifying the right customer segments and deciphering their needs and preferences
• Tying-up with the right manufacturing partner
• Setting up a production facility

Players

Foreign  –  Cairn Energy, CleanMax Solar, Siemens Gamisa, Vestas, Senvion, Eversource   Capital

Indian –  Astonfield, Azure Powe, Hindustan Power, Indosolar, ReNew Power, SELCO   India, Solaire direct, Solar Energy Corporation of India, Su-Kam Power   Systems, Suzlon, Tata Power Solar, Vikram Solar, Vivaan Solar

Value Chain

Machinery / Parts & Services / OEMs

• India Offers
• The Industrial Automation Industry to touch $3.49 billion by 2020.
• By the end of 2020, it is expected that the Indian manufacturing sector touch $1 trillion
• S-E Asia vision market in 2016, and is expected to grow fast at a CAGR of 11.07% (2017 – 2022) to   reach $2.13 billion by 2022

Market

• Industry Sales – $ 197 Billion (2020)
• 2015-2020 – 12% CAGR (forecasted)
• 3rd Rank (Global) – implementing robotic automation
• German technology major – Bosch Rexroth, has funded India’s first Centre of Excellence in   Industry 4.0   Automation Technology at the Gujarat Technology University, Ahmedabad.

Government Agencies

• MoHI&PE (Ministry of Heavy Industries & Public Enterprise; MMSME (Ministry of Micro   Small & Medium Enterprise)

Government Intentions

• National Policy on Electronics (NPE) – creation of a US $ 400 Billion electronics industry by 2025.
• Government of India exempted 35 machine parts from basic custom duty
• Foreign Trade Policy (2015-20), the Government of India increased export incentives to   MSME sectors by 2 %.
• The Government of India to further ease FDI in defence under the automatic route to 51%   from current 49%
• The Ministry of Defence, approved the “Strategic Partnership” model for foreign tie ups for   manufacturing submarines, fighter jets, helicopters and armoured vehicles.

Cluster

Maharashtra (Pune, Aurangabad, Ahmedabad, Nasik), Tamil Nadu (Chennai)

What MCG Offers

• Information & Strategic Planning
• Identifying trends, opportunities and competition for current products
• Expanding by identifying new growth avenues and markets

Ground Work

• Growing through Joint Ventures/ Acquisitions
• Establishing and monitoring performance of dealer networks
• Identifying the right customer segments and deciphering their needs and preferences
• Tying-up with the right manufacturing partner
• Setting up a production facility

Players

Foreign– Siemens, ABB, GE, Endress+Hauser, Schneider Electric, Honeywell, Omron, Mitsubishi Electric, Rockwell, B&R Industrial Automation, IFM Electronic

Domestic– Tata (Jaguar), Mahindra & Mahindra, Hero Motors, Force Motors, Bajaj Auto, TVS Motors, Eicher Motors, Maruti Suzuki

Value Chain

Medical Associations / Distributors / Retailers / Machinery / Parts & Services / OEMs

India Offers

• 1st largest provider of generic drugs globally
• Indian pharmaceutical sector industry supplies:-
  • 50% of global demand
  • 40% of generic demand in the US
  • 25% of all medicine in UK
  • 80% of the antiretroviral drugs used globally to combat AIDS
•   India’s biotechnology industry including bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry and   bioinformatics to grow at an average growth rate of around 30% a year and reach US $ 100 Billion by 2025

Market

• Total Market US $ 38 Billion in 2018
• Exports stood at US $ 17.27 Billion in FY18 and US $ 19.14 Billion in FY19
• Expected to expand at a CAGR of 22.4% over 2015–20 to reach US $ 55 Billion
• FDI inflows worth US$ 15.98 billion between April 2000 and March 2019

Government Agencies

• MoHFW (Ministry of Health & Family Welfare); IMA (Indian Medical Association)

Government Intentions

• Government of India approved 100% Foreign Direct Investment (FDI) policy in the pharmaceutical sector   under the automatic route for manufacturing of medical devices
• 6 pharma parks in UP state and investments over Rs 5,000-6,000 crore (US$ 712-855 million)
• The National Health Protection Scheme is largest government funded healthcare programme in the world,   which will provide a cover of up to Rs 5 lakh (US$ 7,723.2) per family
• The Government of India unveiled ‘Pharma Vision 2020’ aimed at making India a global leader in end-to-end   drug manufacture
• Government new affordability mechanisms Drug Price Control Order (DPCO) and the National   Pharmaceutical Pricing Authority (NPPA)

Cluster

Maharashtra (Pune, Aurangabad, Ahmedabad, Nasik), Tamil Nadu (Chennai)

What MCG Offers

• Information & Strategic Planning
• Identifying trends, opportunities and competition for current products
• Expanding by identifying new growth avenues and markets
• Ground Work
• Growing through Joint Ventures/ Acquisitions
• Establishing and monitoring performance of dealer networks
• Identifying the right customer segments and deciphering their needs and preferences
• Tying-up with the right manufacturing partner
• Setting up a production facility

Players

Foreign– Merck, Pacific Healthcare Singapore, Siemens Ltd., Care Hospitals (Quality Care India), Ivoclar Vivadent, Phillips Healthcare, Pfizer, Becton Dickinson,   Hospira, Medtronic, Johnson & Johnson, B. Braun, Baxter

Domestic– Max Hospitals, AIIMS, Apollo, Fortis Healthcare, Manipal Hospitals, Portea Medical, KMC Specialty Hospitals, Medanta, BLK, Lilavati Hospital, Breach   Candy

Value Chain

Aggregators / Distributors / Machinery / Parts & Services / OEMs

India Offers

• Largest market currently  strides in manufacturing, retail, fast-moving consumer goods and e-  commerce sectors
• Logistics Infrastructure like Dedicated Freight Corridors, Logistics Parks, Free Trade Warehousing   Zones Container Freight Stations; National Waterways; Golden Quadrilateral;
• World Bank’s 2016 Logistics Performance Index shows that India jumped to 35th rank in 2016 from   54th rank in 2014

Market

• Total Market –  US $ 215 Billion (2018-19)
• CAGR (in value terms)– 11% (2014-18)

 

Government Agencies

MoCI (Ministry of Commerce & Industry); MoHI&PE (Ministry of Heavy Industries & Public   Enterprise; NHAI (National Highways Authority of India)

Government Intentions

• GST (Goods and Services Tax) made India one market;
• Inclusion of logistics sector in the Harmonised Master List of Infrastructure Subsector
• ‘Make in India’ campaign
• The Central Board of Indirect Taxes and Customs (CBIC) brought new provision under CSB IV and CSB V   to the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 providing   people 100% GST refunds in the logistics services

Clusters

Maharashtra (Pune, Aurangabad, Ahmedabad, Nasik), Tamil Nadu (Chennai)

What MCG offers –

• Information & Strategic Planning
• Identifying trends, opportunities and competition for current products
• Expanding by identifying new growth avenues and markets

Ground Work

• Growing through Joint Ventures/ Acquisitions
• Establishing and monitoring performance of dealer networks
• Identifying the right customer segments and deciphering their needs and preferences
• Tying-up with the right manufacturing partner
• Setting up a production facility

Players

Foreign– DHL; KWE; LCL Logistics; CEVA Logistics; Capricon logistics; Haiko Logistics; Rhenus; Arctic Logistics; Nippon Express

Domestic– CTC Freight Carriers Pvt. Ltd; Transocean Express Logistics; Atlas Logistics; SafeExpress;  OM Logistics; SAL Logistics; Falcon Freight Link

Value Chain

Developers / EPC Firms / Distributors / Machinery / Parts & Services / OEMs

India Offers

• India require to spend $ 454.8 bn on infrastructure development over the period of 5 years (2015-20)
• Expected cement capacity addition of 80-100 MT/ annum over next 5 years (2015-20)
• Largest market currently

Market

• Total Market –  US $ 750 Billion (2018-19)
• CAGR – 15.7% (2014-18)
• The industry contributes: Steel Industry – 55%; Paint Industry – 15%; Glass Industry – 30%
• Highest growth activities in this sector : Export Cargo – 10%;  Highway – 9.8%; Power Generation – 6.6%;    Import Cargo – 5.8%; Major Ports – 5.3%

Government Agencies

MoCI (Ministry of Commerce & Industry); MoHI&PE (Ministry of Heavy Industries & Public   Enterprise; NHAI (National Highways Authority of India)

Government Intentions

• Housing for All by 2022; GST (Goods and Services Tax) making India one market;
• 100 smart cities to be developed by 2020;
• 5 Industrial corridors;
• 25 railway stations re-development besides 3,500 km line addition;
• SAGARMAL Initiative of connecting India Ports; 6 mega ports planned

Clusters

Maharashtra (Pune, Aurangabad, Ahmedabad, Nasik), Tamil Nadu (Chennai)

What MCG offers –

• Information & Strategic Planning
• Identifying trends, opportunities and competition for current products
• Expanding by identifying new growth avenues and markets
• Ground Work
• Growing through Joint Ventures/ Acquisitions
• Establishing and monitoring performance of dealer networks
• Identifying the right customer segments and deciphering their needs and preferences
• Tying-up with the right manufacturing partner
• Setting up a production facility

Players

Foreign– DHL; KWE; LCL Logistics; CEVA Logistics; Capricon logistics; Haiko Logistics; Rhenus; Arctic Logistics; Nippon Express

Domestic–  CTC Freight Carriers Pvt. Ltd; Transocean Express Logistics; Atlas   Logistics; SafeExpress;  OM Logistics; SAL Logistics; Falcon Freight Link

Policy for Charging & Battery Swapping Infrastructure

• Businesses that provide charging/swapping would be referred to as Energy Operators (EO)
  • They would deploy slow and fast chargers at suitable locations for EVs.
  • They would purchase batteries, setup charging and swapping service and provide the charged batteries on lease for EVs
  • Both the charging as well as swapping service would require that EVs have standard charging protocols to connect to a charger of swappable batteries and have a
    standardized connector.
• Government of India would consider providing long-term and short-term tax-incentives and faster depreciation as incentives to EOs for deploying slow/fast chargers and carrying out
  battery swapping.
  • GST for all these chargers and swappers should be the same as that for the vehicles.
  • Swappable vehicle batteries and vehicles without batteries (which receive swappable batteries) should also be treated the same under GST.
  • Further, installation of chargers would be allowed (and over time, mandated) on street parking, parking lots and any public charging space.

Standards for Chargers

• The charging can be done at home using what is called as home-chargers (also referred to as private-chargers) or public chargers, installed on streets, parking lots, petrol pumps, or
  any other public charging space. The chargers are referred to as EV Supply Equipment (EVSE). The EVSE characteristics that differentiate chargers include:
  • Power and voltage levels: the output power range and voltage range supported by an EVSE.
  • AC or DC: whether the output of EVSE is AC or DC; if it is AC, the vehicle needs to have an on-board charger.
  • Type: the output socket and connect or used by an EVSE.
  • Mode: the communication protocol between the vehicle and the charger.
  • An EVSE standard thus defines power level, voltage level, AC or DC output, type and mode.
  • Besides, all EVSEs need a communication protocol between EVSE and a Central Management System (CMS).
  • The standard would include safety measures and operational procedures and specifications including packaging, thermal and humidity levels and possibly payment
    mechanism.(In this regard, Department for Science and Technology (DST) will develop indigenous standards through the grand challenge method through active
    participation of industry, academia and other stakeholders).
  • In the interim, until indigenous standards are developed, subsidy would be provided for setting up of public charging standards adhering to globally acceptable standards.
  • Today the ratio of public slow chargers and fast chargers deployed is about 5:1
  • EV industry, on getting cross-subsidy through coupons/credits could support initial roll-out of the chargers. An attempt should be made to make all these deployed chargers self-sustainable in the financial sense at the earliest possible.

Battery Cells / Battery Packs / Battery Materials

  Process:

• Lithium-ion battery manufacturing consists of three parts:-
• First is cell to battery-pack manufacturing involving a value-add of 30 to 40%.
• The second is cell manufacturing with a value add of 25 to 30%.
• The third involves battery-chemicals with a value of 35 to 40% of the total cost of battery pack.
• While cell to pack manufacturing plants have started functioning, the others need to be encouraged. India would provide MSIPS incentives and tax incentives for such manufacturing.

Demand:

• India needs a minimum of 10 GWh of cells by 2022, which would need to be expanded to about 50 GWh by 2025.

  Things to get right:

• Cell-cost
• Parameters like energy-density (size and weight), life-cycles, safety, temperature tolerance right, so that its batteries are best in the world.

  How to do it:

• Early plants can be set-up either by international manufacturers or as joint ventures between Indian companies and international manufacturers.
• MSIPS incentives and tax incentives need to be provided to these companies.
• This needs to be coupled with strong support to R&D in the new battery chemistry and manufacturing process to those organizations who have the capability of translating R&D to commercialization.
• At the same time, India would need a policy to secure materials used in Lithium-ion batteries, including lithium, cobalt, nickel, manganese, and graphite.
• Our first task will be to scan for these resources within India and at the same time make or incentivize strategic investments in international mines for these materials.
• Lithium-ion battery recycling industry (what is referred to as urban mining).
• India would need to introduce strict norms for recycling every Lithium-ion battery used in an EV, mobile phone or a laptop. It could allow import of used Lithium-ion batteries for recycling, with tight environment norms, so that all recycling plants have zero-emission.
• Finally, MSIPS incentives and tax incentives could be provided for Lithium-ion battery recycling plants as well as for chemical industries, which would convert battery materials into chemicals.
• To incentivize longer life batteries to be developed and produced, India would enable battery systems, both within vehicles and in “second life” to avail potential revenue in supporting load balancing, time-of-day charging, energy banking and other uses after their useful life in the automobile is exhausted.

Initial Focus:

• While encouraging the sale of private EVs, India’s focus, at least in the first few years, should be on small, public and rural transportation
• It is possible for India to have a unique impact and scale early with two-wheelers and three-wheelers, including three-wheeler goods vehicles. Special attention is needed to get these vehicles to become economically viable and flourish.
• India needs to ensure that electric buses become viable. With the credits/coupons as discussed in section IV, buses would become economically viable with the rationalized customs duties.
• Cars used in the government and taxi fleets need to be available early. India could use both charging and swapping to get these vehicles scale early.

 R&D:

• The Government will aid R&D grants through grand challenge, for product-development which could commercialize within one or two or at the most, three years.
• Short-term R&D would be required for electric motors and controllers, DC-DC converters, EV chargers, electric power-steering, electric power-brakes, electrical air-conditioners, vehicle control and management and communication protocols. (All such R&D proposals would ab-initio figure out target volume costs of EV subsystems in India.)
• Another area that will require R&D is to understand the impact of large scale charging on the electric grid
• India would need to watch out for new approaches and technologies and promote long-term R&D in all aspects of EV technologies including hydrogen fuel-cells, new battery-chemistries (with higher specific energy and energy densities), battery materials and chemicals, distributed motors, batteries withstanding higher temperatures, motors without permanent magnets, heavy trucks, and two-way power transfer between grid and EV chargers.

Transforming Auto – Ancillaries: A focus on power-electronics industry & Electricity distribution System & Impact on the grid:

• EVs use power-electronics extensively. India would need a new power-electronics industry which can help develop and produce high-efficiency sub-systems for EV industries. A special thrust is needed to promote such industries.
• Indian power industry needs to be prepared for the EV roll-out.

  Some key actions to prepare for greater EV penetration:

• Actions on the demand-side management
• Dynamic electricity pricing
• Vehicle-to-grid technology for use of EVs as active loads and generators for power demand shaping.
• Global experience suggests that the distribution systems are generally quite loaded and enough spare capacity is not available to support charging infrastructure required for EVs. A similar situation exists in Indian cities where adding banks of chargers is possible only with upgrading of distribution networks. Managing distribution transformer upgrades may be less expensive and easier.
• More difficult would be managing overloaded cables which can be significantly more expensive, especially for underground networks.
• Similarly, harmonic distortions due to EV charging may impact grid stability. The EV chargers must be carefully certified to meet the harmonic-distortion specifications, using active filters if required.

Impact of EV on economy & employment

• Shifting modes of mobility could launch new business opportunities:-
  •  hese would emerge in areas such as charging and swapping infrastructure, service, or integrated transport.
  • Energy players have entered the mobility industry           traditional power companies are exploring possibilities in charging infrastructure           infrastructure companies are seen entering the battery business
  • An important task that needs attention is transforming and up-scaling small and medium sub-system and auto-component industries. A large number of such mini-micro industries are auto-ancillary companies for diesel/petrol vehicles. They provide large number of jobs. Many of them will not survive as EV replaces petrol/diesel vehicles. A careful plan to hand-hold such industries and help them during the transition to EV components manufacturing is required.
  • Expansion of transport fleets based on IC engines negatively impact the economy considerably, apart from their negative health contributions. Crude oil price volatility adds uncertainty to an already burgeoning import bill, while also needing huge investments in oil refineries and related distribution infrastructure. There are several studies that suggest overall positive impact on GDP on introduction of EVs in fuel importing service dominated economies.
    • One study has estimated that driving the shift to electric vehicles would lead to a 1% increase in EU GDP.
    • In another study, net private and social benefits are estimated between $300 and $400 per EV.
    • Coupled with generation of renewable power, the battery manufacturing industry in India can become bigger than the total amount spent on import of crude oil. This would provide a huge boost to the Indian economy.
    • The revenue loss for governments from the taxes on the oil sector is expected to be replaced by higher tax revenues in other economic sectors.

Employment Impact

• European Climate Foundation has estimated that through reducing oil demand by more efficient electric cars, employment will increase by 5,00,000 to 8,50,000 by 2030.
• Another report estimates that about 2 million additional jobs will be created by EVs by 2050.
• The report further adds that oil production and distribution has very low employment intensity of just four jobs per million Euros value added compared to 24 jobs per million Euros in the general economy. Therefore, any shift in expenditure from buying imported oil to other expenditure choices would generate additional employment.
• As imported oil is replaced by electricity and batteries, large employment is possible in enhancing power-generation and distribution, and in battery manufacturing, including battery-recycling.
• As far as the automotive sector is concerned, a large part of the supply chain will get transformed in the power train segment.
• Traditional suppliers will move from supplying parts such as exhaust pipes and ICEs to perhaps battery materials, electric motors, and regenerative braking systems.
• EVs will create opportunities in durable and lightweight thermoplastics, higher demand for electricity, storage and many others.
• In addition, EV battery charging and swapping would create a large number of jobs throughout the country.

The net impact on employment would perhaps be balanced out.