On the supply side we have a timber processing sector that is currently largely “unorganised”, reflecting a fragmented base of sub-scale manufacturers with low productivity, minimal capital investment, low automation, inconsistent and unscalable raw material supply chains and inefficient / inadequate supporting infrastructure (storage, transportation, logistics etc).
Given Zindia’s heritage and experience in addressing the primary timber needs of the growing Indian market, a key part of our ongoing strategy is to be a “Market Maker” and create a market for timber sector processing and primary product supply.
AZ-MTIP will be a cluster of activity across the entire timber sector value chain within 1,000 acres at Mundra Port in Gujarat, India. Our vision is to bring advanced manufacturing and processing of all kinds of timber products within this industrial zone, supported by relevant logistics, infrastructure, R&D services and sustainable scalable raw material supply chain from a global supply base (including NZ, Australia, South Africa, North America and Latin America).
AZ-MTIP will fundamentally transform the Indian timber sector and cater to the growing timber product needs of India as well as be an export hub via Mundra Port.
It is expected that once in steady-state, AZ-MTIP will generate collective annual economic output in excess of US$500 million, create 30,000+ new jobs and entail cumulative capital investment of more than US$300m across 3-5 years.
The AZ-MTIP venture enjoys strong support from the Government of India, due to the significant contribution this will make to the development of the timber sector in India, strong alignment with the government’s “Made In India” manufacturing focus, substantial economic output and generation of employment opportunities.
On 26 October 2016, APSEZ and Zindia executed a Memorandum of Understanding (MOU) in New Delhi, India for collaboration towards the development and promotion of AZ-MTIP. The MOU execution was officiated by Mr. John Key (Hon Prime Minister of New Zealand) and Mr. Arjun Ram Meghwal, (Hon Minister of State For Finance, Government of India).
For more information on this industry transforming initiative, please contact Sharat Kanthan, Head of Business Development on email@example.com