Transcript PowerPoint 簡報

Experience of Investment
from CSCI
By C K Chang
8 September 2014
New Delhi, India
China Steel Corporation India Private Limited
Shri Narendra Modi
Prime Minister
and Former Gujarat Chief Minister
Dr. Didar Singh
Secretary General of
Federation of Indian Chambers of Commerce
Mr. Sidharth Birla
President of
Federation of Indian Chambers of Commerce
Mr. Pradeep Rawat
Joint Secretary,
Minister of External Affairs
Mr. Amitabh Kant, Secretary,
Ministry of Commerce and Industry
China Steel Corporation India Private Limited
Mr. Saurabh Patel
Minister of
Finance Energy & Petrochemical,
Labour and Employment, Government of Gujarat
Dr. Nanda
Additional Chief Secretary of
Home Department, Government of Gujarat
Mr. Vakil
Mr. Pandian
GIDC Chairman ,
Additional Chief Secretary of Industry & Mines Department
,and Former Principal Secretary, Mr. Sahu
Mr. Swain GIDC Managing Director
Mr. Vakil
GIDC Executive Director
China Steel Corporation India Private Limited
CSCI Brief Introduction
1. CSC considered the India GDP growth over 6.3%.
2. CSC has provided energy-saving Electrical Steel
into Indian market, from 42,000 to 80,000 ton,
since 3 years ago. Last year is 92,000 ton.
3. The India tax remission and exemption schemes.
4. CSCI try hard to do more short time customer
services to reach the win-win situation.
5. CSCI Stage I annual ES capacity is 200,000 ton,
focuses on motor, transformer and pump
Industries, with investment up to USD 237M.
6. In the future, CSCI anticipates to provide automobile,
home appliance more high grade materials.
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CSCI Factory Location
Ahmedabad has
Gujarat’s only
international airport.
Ahmedabad
Vadodara
CSCI corporate office
is in Vadodara,
where is 110km and
120km from
Ahmedabad and
Dahej respectively.
Dahej Port
CSCI Factory
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CSCI Brief Introduction
Total Investment of Stage I
Long-Term Loan(46.5%)
Equity Capital(53.5%)
237.00
110.00
127.00
Unit: million USD
Furthermore, for Operating Capital sufficiency CSCI
has applied short-term loan from local banks. Until
05.09.2014 extra USD 30M is ready to be invested.
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CSCI Brief Introduction
Office Buildings
Stage 1 (Anneal and
Coating Line)
Utility Areas
Reserve for Coil Centre
Future Expansion
Focus on Cold-rolled and Galvanized
product of 1 million tonnes per annum
whose application are on automobile,
home appliance and construction.
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4. CSCI Brief Introduction
4. CSCI Brief Introduction
Production Process (ACL)
Uncoiling
Welding
Surface
Cleaning
Coating
Drying &
Curing
Side
Trimming
Annealing
Recoiling
(Optional)
1. Through ACL to gain the energy efficiency and precise
shape for customer further processing.
2. Focusing on chrome-free E.S. market, to improve its anti-rust
performance which is energy-saving product.
※ Specification & Application for ES
Classification
Specification
Normal Grade
(CSC & CSCI)
50CS1300
50CS1000
Semi-Processed 50HE1 ARO
50NE1 ANC
(CSC)
Main Application
General Motor & Small Transformer
Compressor Motor
Medium Grade
(CSC & CSCI)
50CS600~800
High Grade
(CSC & CSCI)
50CS470C
Top Grade
(CSC)
50CS290~230
35CS300~210
Compressor Motor for Variable-Frequency,
High Efficiency Motor; Accurate Motor,
Huge Industry Motor & Generator
Thin Gauge
(CSC)
25/20/15CSXXXXHF
Driving Motor for Electric Vehicle, ,
High Frequency Motor,
Commercial Transformer
50CS600H
50CS470~350
Compressor Motor, Small/Medium
Industry Motor, Small Generator,
Medium Transformer
Compressor Motor for Variable-Frequency,
High Efficiency Motor; Medium/Huge
Industry Motor, Generator, & Transformer
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4. CSCI Brief Introduction
CSCI Organization Chart
Chairman
Managing Director
Planning
Office
M
Management Division
M1
Human Resources &
General Affairs
Department
Special Assistant
Secretary
C
M2
Finance &
Information
Department
W
Commercial Division
C2
Sales &
Transportation
Department
W1
Production &
Equipment
Department
V0
Production Division
W2
Utilities
Department
Construction &
Engineering
Committee
W3
Production
Support
Department
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1. CSCI Brief Introduction
Employee Training Program:
1. Internal Training (On Job Training & Off Job Training )
2. External Training (Out side Training Institute)
3. Overseas Training (CSC Taiwan)
Employee Benefits / Welfare:
1. Meal Allowance (Canteen Under Construction)
2. Employee Medical Insurance (Family included)
3. Free Transpiration from Bharuch to Factory Site
4. Uniform, Safety Equipment (Staff and Worker)
5. Employee Colony (dormitory for 250 employees, 1,2BHK
for Staffs)
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CSCI Chronicle
1. 20.10.2011: CSCI Incorporated in Ahmedabad
2. 02.07.2012: CSCI Project started
3. 02.08.2013: Machinery installation started
4. 06.06.2014: ACL individual test run
5. 25.08.2014: Cold Run
6. 30.09.2014: Hot Run (estimated)
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Experience of investment from CSCI
1.
2.
3.
4.
5.
6.
7.
Gujarat and its Geographical Location
Taxes Structure
Duty Exemption and Remission Schemes
Bilateral Preferential Investment Policies
Prominent Characteristics
Basic Necessities for Expatriates
Advices for Potential Investors
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1. Gujarat and its Geographical Location
New Delhi
Mumbai
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1. Gujarat and its Geographical Location
 Most industrialized state in India.
 Surplus of power supply.
 Easy-access to major markets(within DMIC).
 Has a coastline of 1600km with 42 ports
connecting Has 55 SEZs and more than 200
industrial zones.
 Business friendly government.
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2. Taxes Structure
Central Tax
a. Customs Duty 1) Basic - 5%
2) CVD - 12%
3) SP. CVD - 4%
b. Excise duty - 12.36%
c. Service tax - 12.36%
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2. Taxes Structure
Customs Duty
Items
(A)
CIF
(B)
Landing Cost (1% on CIF)
Assessable Value
(A+B)
Basic Duty
5% on (C)
CVD
12% on (C+D)
(C)
(D)
(E)
100.00
1.00
101.00
(F)
Education Cess 3% on (D+E)
(G)
Sub total
(H)
Special CVD 4% on (G)
(I)
Total price inclusive all taxes
(J)
Creditable taxes
(E) + (H)
(K)
Price after non-creditable taxes
106.58
5.05
Non-creditable
12.78
creditable
0.53
Non-creditable
119.36
4.77
creditable
124.13
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2. Taxes Structure
Sales Taxes
1.) VAT: Value Added Tax 5.00%
2.) CST: Central Sales Tax 2.00%
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2. Taxes Structure
Inner and inter state sales taxes
Items
Inter State
Transaction
Inner State
Transaction
(A)
Ex-work Price
100.00
100.00
(B)
ED : 12.36%
12.36
12.36
creditable
(C)
VAT : 5%
5.62
N/A
creditable
(D)
CST : 2%
N/A
2.25 Non-creditable
(E)
Price inclusive taxes
(F)
(G)
117.98
114.61
Creditable taxes
12.36+5.62
12.36
Price after noncreditable taxes
100
102.25
GST(Good & Service Tax) can be imposed as soon as 2014-15, in order to
replace CST/VAT.
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3. Duty Exemption and Remission Schemes
Advance License :
1. Benefit : Raw materials can be imported at 0% import duty.
2. Obligation : Imported materials need to be exported with
15% added value.
EPCG (Export Promotion Capital Goods) :
1. Benefit : Capital goods & spare parts can be imported at 0%
import duty.
2. Obligation : Export 6 times of duty saved on capital goods
imported, and to be fulfilled in 6 years.
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4. Bilateral Preferential Investment Policies
Essential preferential policies negotiate with
governments in advance. such as :
• Single window for coordination with central
and state government
• Easing import duty on Working in Process
materials
• Win-Win Studying the Bulk Berth in Dahej port
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5. Prominent Characteristics
DESCRIPITION
TAIWAN
INDIA
REMARKS
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Skilled manpower
available
-
Knowledge
-
Competency
Expertized
-
Eager to learn
Attrition Rate
-
Average level
-
Beneficiary policy
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Indian Standard
-
drawing must be
converted fully
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Plenty of suppliers
Patience to find
-
To find suppliers for
comparison
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Depend Nature
-
Intertwine with third
parties’ contract
Manpower
Industry Standard
Major
Countries’
Standards
Materials Availability
Schedule Control
Tight Control
Low-Cost Labour
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6. Basic Necessities for Expatriates
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Gujarat is a dry state
High percentage of vegetarian
Drinking bottle water
Summer(before monsoon) is dry and hot.
Road system in Gujarat is relatively better
Gujarat is a relatively safer state
Cinemas, malls are available in big cities
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7. Advices for Potential Investors
• Study preferential policies before investment
• Taxes Issue from beginning try to find a good
Charter Account and a Lawyer
• Negotiate with associated Government officials
• Future attraction on Taiwanese industrial zone
• Extra costs should be predicted practically
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The end
Thank you for attention
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