Krishnapatnam International Leather Complex

1. Krishnapatnam International Leather Complex Is a world class infrastructure for Leather Tanning & Leather Processing. KILC is promoted the by a Special Purpose Vehicle (SPV) called “Krishnapatnam International Leather Complex Private Limited (KILCPL)” jointly promoted by Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and Leather Industries Development Corporation of Andhra Pradesh (LIDCAP). The project finance is supported by the Government of India, Government of Andhra Pradesh and Private participation in the SPV. KILC is located in Krishnapatnam in PS Nellore district of Andhra Prdesh in South India in an area of 412 acre near the sea coast. The KILC will be developed with latest technology in effluent treatment with clear environmentally friendly environs and will home technologically state of the art production facilities to produce high quality / high end leather for quality product production commanding premium The complex will have capability to process around 300 tonnes of hides and skins per day (1,00,000 tonnes annually equivalent to 10% of present Indian capacity). The expected investment in the KILC is USD 200 million. The KILC will be developed with the norms of the World Trade Organisation. Central Leather Research Institute (CLRI) has prepared the project report of the project. The project will be completed in two period under the strong technical support of the CLRI. The KILC is proposed to house about 25 tanning units in the area of 250 acres of land and about 21 units of leather processing with the capacities ranging from 6 tonnes to 25 tonnes with a total capacity of 300 tonnes in the area of 220 acres of land. The size of the plots in the ILC would be in sizes of 5, 10, 15 and 20 acres. A World Class infrastructure for Leather Tannery and Processing of Leather. • Modern Technologies • Eco-friendly Tanneries, • Well-connected network – Port, Road, Airport & Telecommunications. • Best environmental management with Marine outfall

2. Krishnapatnam International Leather Complex KLIC is located in the most ideal location in India with Close connectivity to • 3-ports, Krishnapatnam (5 Kms), Chennai- Major Port (180 Kms), Ennore-Major port (160 Kms) • 2-Airports, Nellore (45 Kms), Chennai International Airport (200 Kms,) • Road - National Highway-5, Golden Quadrilateral with 4-lane (25 Kms), • 2- Railway Stations Nellore (18 Kms), Gudur (18 Kms) • 180 Kms from Metro City – Chennai, 25 Kms from Nellore Municipal Corporation • 5 Kms from sea coast to suit the best eco-friendly environment management with marine outfall facility • Unlimited raw material resources – more than 10% of India’s raw hides and Skins • Skilled Manpower, most competitive power tariffs and abundant water resources. PS Nellore INDIA Andhra Pradesh Ennore Chennai Krishnapatnam International Leather Complex

3. World class facilities in KLIC • Krishnapatnam International Leather Complex • Processing Capacity – 300 TPD • CETP Capacity – 10 MLD • Industrial Plots area – 220 acres • Environmental Management area – 45 acres • Utilities & Amenities area – 41 acres • Power Supply – 35 MW • Water – 10 MLD • Central Common Facilities • Common Effluent treatment with marine outfall • Storm water drainage • Secured Landfill • Green Belt • Roads & lighting • Research & Testing Facility • Shopping complex • Business Centre • Training Institute • Communication Centre • Cafeteria • Warehousing • Other utilities like – • Administrative block • Fire fighting system • Police Station • Bank & Post Office • Commercial area • Bus stops • Transport terminal • Medical facilities • Educational facilities • Captive Power Plant • Electric sub-stations • Over Head Water Tanks • Pumping station

4. Sound port Infrastructure Chennai Major port • 180 Kms from Krishnapatnam International Leather Park. • Chennai Port, 126 year old port, all weather port is a ISPS Compliant Port. Chennai Port Trust Certified ISO 14001 : 2004 • Port with three Docks, 23 berths and draft ranging from 12m to 16.5 m deep & Round the clock operations and a hub port for Containers, Cars and Project Cargo, handling of containers of 11,28,108 TEUs • Handling multiple cargo and third position among all Major Ports • Handled an all time high of 57.15 Million tonnes of cargo of POL, Iron Ore, Coal, Fertilisers etc per annum. Projected to handle 74 MTPA by 2012 • Pre berthing detention of 0.9 Hrs, Average turnover 2.4 Days and Berthing on arrival. • Passenger terminal of international standard • EDI connectivity with Customs, Bank, Online Port users Portal established and various port activities under process. Krishnapatnam port (the nearest) • Phase-I of Port commercial operations was inaugurated on 17h July 2008. • 4 berths with 15 M deep draft allows the logistics of iron ore handling of 14 million tonnes, coal handling of 7 million tonnes and general cargo of 2 million tones annually by the maximum ship size of 1,05,000 dwt (depth - 5 m C.D). • Being developed as a modern deep water and high productivity port to sustain the demand of growing international trade. • USD 1 bn project in 6,500 acres of land is scheduled to be completed all 3-phases by 2012 to become the biggest container terminal in India with 90 million tones capacity with total 21 berths. • The location of the port offers logistical advantage for trade in domestic as well as Asia-Pacific and Far-Eastern regions. Ennore Port Major port located 20 kms north of Chennai Port in 2000 acres of land. The port commissioned in June, 2001 with two dedicated coal berths, 280 M long with 15M alongside depth with permissible draft of 13.5 M, of maximum size of vessels 77,000 DWT and handling 12 MTPA (thermal coal, Iron Ore and POL per annum). Average Turnover time is 2 days, Average pre-berthing time is 0.31 hours.Forecast of traffic in the next 20 years is 55 MT (dry/liquid bulk). The projected to handle cargo of 64 MTPA by 2012.

5. Infrastructure Airports Chennai International Airport is situated at Tirisulam, 180 Km from Krishnapatnam has two terminals, Kamaraj Terminal, handlesdomestic flights connecting 20 destinations across the country with Chennai and Anna Terminal major international destinations like London, Frankfurt, Dubai, Muscat, Bahrain, Dhahran, Jeddah, Singapore, Kula Lumpur and Sri Lanka. Besides Air India and Indian Airlines several international carriers viz. British Airways, Lufthansa, Singapore Airlines, Malaysian Airlines, Air Lanka, Oman Air,Gulf Air and Saudi Airlines are operating total about 125 flights everyday from Chennai.Chennai airport is proposed to be upgraded both domestic and international to handle 13 million passengers per annum by 2012 including second runway. Nellore Airport is proposed in 1,200 acres of land in Damavaram between Nellore and Kavali which is about 30 Kms from the Krishnapatnam International Leather Park. The port will be developed by Indu Group with partnership of Maharashtra Airport Development Co. (G2G model). Eco friendly Waste Management with Marine Outfall The liquid wastes, which are generted from the Tanneries in ILC, will be collected and treated at the CETP and the treated effluent will be discharged in to the Bay of Bengal through a Marine Outfall. The estimated liquid waste generation for the ILC is around 9.5 MLD. It is proposed to plan the Marine Outfall for an environment stable disposal of effluents into the Bay of Bengal. Te disposal will be carried out by constructing a pipeline on the seabed with a diffuser or with a tunnel, risers and appropriate diffusers. It is proposes to reach all the BoD and CoD norms suited to marine life and the marine outfall will be employed to avoid the addition of salt to land water. It is proposed to promote an aquaculture plant based on treated wastewaters prior to the discharge of supernatant from aquaculture plant into sea.

6. Power Supply Infrastructure Government of India has awarded he Krishnapatnam Ultra Mega Power Project of 4,000 MW has been awarded to Reliance Power Limited at Rs 2.33 per KWh. Andhra Pradesh is very strong in power sector due the mix of thermal, hydro and gas based power. The installed Capacity is 12,500 MW. Another 15,000 MW will be added in five years. Power Tariffs of the State are cheapest in the country. The power tariffs are coming down year after year and likely to come down further due to natural gas production by Reliance group in the Krishna Godavari Basin in AP Present Industrial Power Tariffs after deducting the subsidy component in AP are 11 KVA – Rs. 2.65 Ps., 33 KVA – Rs. 2.60 Ps. And 132 KVA – Rs. 2.50 Ps Plenty of Water Resources • Krishnapatnam Port Company Limited is establishing desalination plant for the use of the port. The share of the water for the Krishnapatnam International Leather Complex is 10 MLD. Further many desalination plants are coming for the water requirement of the thermal power plants coming in Krishnapatnam. Large pool of technical manpower • LIDCAP alone has trained about 12,000 persons in leather products. Further, there are number of technical manpower available trained in the Central Leather Research Institute, Chennai. Manpower is available at most competitive prices. Apache group has already employed more than 6,000 persons Abundant Raw Material resources • Andhra Pradesh is providing 10% of the country’s raw hides and skins. However, only 5% of the resources are used locally due to lack of adequate tanning facilities, therefore the balance 95% are being transported to the other states of the country for value addition. AP has the highest number of animal population and having about 450 slaughter houses in the state.

7. Leather Sector Leather Map of India • Largest Livestock holding country - A sources about 10% global requirement of Leather. • second largest global footwear producer. • Third largest exporter of global saddlery and harness items. • Third largest producer of global leather goods after China and Italy • Fourth largest supplier of global leather garments. • Of the 321 million hides and skins processed annually by the industry, 85% is sourced domestically.   • Annual Turnover/ Production – USD 5 bn • Domestic Sales – USD 3 bn • Annual Export – USD 2 bn • 2.5 million direct and indirect employment Growth of Indian Leather sector 48 40 Indian Animal Population (million numbers) (million heads) 21 17 16 Cattle - 200 Buffalo - 95 Goats - 125 Sheep - 50 AP UP Mah MP TN Animal Population - Top States of India

8. 2.1 (in millions) 1 0.50 0.10 0.09 Sheep Goat Buffaloes Cattle Pigs Total Animal slaughtered annually in AP- 3.7 millions Upcoming projects in PS Nellore District • Adidas Group, Apache SEZ Development India Pvt. Ltd at Tada, 80 Kms from Nellore, established Shoe manufacturing facilities in 127 acres.. • 4,000 MW Ultra Mega Thermal Power Project proposedin Krishnapatnam in an area of 2,535 acres. • MAS Holdings, Textile and Readymade Garment SEZ, proposed a projectnear Krishnapatnam, in an area of 230 acres. • SBQ Steels, establishing steel plant in an area of 151 acres, 20 kms from Krishnapatnam • Bharatiya International Leather SEZ, proposed a project at Tada, 80 Kms from Nellore in an area of 267 acres. • IFFCO Food Processing SEZ, 15 Kms from Nellore is proposed in an area of 2,700 acres • Caparo Group is proposed an automobile industry near Naidupet, 60 Kms from Nellore in an area of 500 acres. • Taiwan Industrial Park proposed in an area of 2,500 acres near Naidupet, 60 Kms from Nellore to host investments by Taiwan entrepreneurs in which Mei Ta Industrial Company Ltd has proposed auto component project in an area of 230 acres. • Regent Power Tech is establishing wind electric generators in an area of 40 acres at Tada. • 1,600 MW Damodaram Sanjeevaiah Memorial Thermal Power Project by APGENCO in Krishnapatnam in an area of 2,495 acres of land. • 700 MW Thermal Power Project by Meenakshi in Krishnapatnam in an area of 535 acres. • 540 MW Thermal Power Project by Simhapuri in Krishnapatnam in an area of 480 acres. • Kovvuru Cooperative Sugar Factory is already located in Nellore. National Highway No: 5 (4-lane) (25 kms from ILC)

9. Industrial Investment Promotion Policy of Government of Andhra Pradesh • Reimbursement of power charges @ Rs 0.75 ps per unit for 5 years • Reimbursement of 25% of VAT & CST paid • Reimbursement of 100% Stamp Duty and Registration Fee • Providing infrastructure at the doorstep of the industry • Tailor made package of incentives for Mega Projects of investment more than USD 20 million on case to case basis • Time bound industrial clearances / approval through Single Window Clearances • Simplified procedures, laws, rules and documentation Stake Holders of the ILC Project Technical Support from Project Funded by Central Leather Research Institute (council of Scientific & Industrial Research) Adyar, Chennai 600 020, Tamilnadu, India Ph: +91 44 24911386, Fax: +91 44 24911589, 24912150 Ministry of Commerce & Industry Department of Industrial Policy & Promotion Udyog Bhavan, New Delhi Phone: +91 11 23063499 Web: http://dipp.nic.in Infrastructure Development by Secretary to Government Industries & Commerce Department, Government of AP Hyderabad Chairman and Managing Director, Andhra Pradesh Industrial Infrastructure Corporation ‘Parisrama Bhavan’, 6th Floor, Basheerbagh, Hyderabad-500004, Andhra Pradesh, India Ph:91-40-23230234/23233596 Email:apiic@hd1.vsnl.net.in Nodal Agency & Equity Holder V C & Managing Director, L I D C A P No. 5-77/27, HS Darga, Hyderabad – 500 008, AP, India Phone: +91 40 23568976, Fax: +91 40 23568977 e-mal: mdlidcap@lidcap.com, Web: www.lidcap.com Special Purpose Vehicle Krishnapatnam International Leather Complex Private Limited HS Darga, Hyderabad – 500 008 Phone: +91 40 23568976

10. Infrastructure World Class infrastructure Eco-friendly environment Management Abundant resource of skins and raw hides Large pool of skilled manpower at most competitive prices

12. Number of Slaughter Houses 25 Adilabad Hyderabad 47 32 Srikakulam Karimnagar 8 Nizamabad 8 26 30 Vizianagaram 7 Warangal 24 Medak Visakhapatnam Khammam 0 5 8 East Godavari Ranga Reddy West Godavari Nalgonda 37 12 24 16 Krishna 12 Guntur Mahabubnagar 9 33 > 25 Nos Between 10 & 25 < 10 Prakasam Kurnool 12 4 Anatapur Nellore Kadapa 5 63 Chittoor Total Number of Slaughter Houses - 447

13. % Growth of Animals in AP & Animal Slaughtered during 2007-08 (in lakhs)

14. District-wise animals Slaughtered during 2007-08 108411 Adilabad Hyderabad Srikakulam 301779 188732 50230 Karimnagar Nizamabad 13490 129264 Vizianagaram 629451 Warangal 142671 Medak Visakhapatnam 53297 Khammam 0 130168 364178 Ranga Reddy 75518 West Godavari East Godavari Nalgonda Krishna 97308 330922 39368 Guntur 303103 Mahabubnagar Total Number of animals Slaughtered – 37,34,891 52531 Prakasam 218598 Kurnool 135718 78080 Sheep 20,84,583 Goats 9,63,586 Buffaloes 4,81,184 Cattles 1,16,354 Pigs 89,184 Anatapur Nellore Kadapa 73510 218564 Chittoor > 2.00 lakhs Between 1.00 lakh and 2.00 lakhs < 1.00 lakh