Vibrant Gujarat Summit 2024 Attracts Big Players: Ambani, Adani, Suzuki Bet Billions on Growth

Vibrant Gujarat Summit 2024 saw some of the big global players invest heavily in the state. Top industrialists, including Reliance Industries Ltd chairman Mukesh Ambani, Adani Group founder Gautam Adani and Suzuki Motor Corp. President Toshihiro Suzuki, unveiled investment plans worth more than Rs 2.35 lakh crore on the first day itself.

Reliance’s pledge at the Vibrant Gujarat Summit

Mukesh Ambani announced Reliance would set up India’s first carbon fibre facility at Hazira in Gujarat. The 5000 acre giga factory will start operations in the next half of 2024. Ambani emphasised that Reliance will continue to be a Gujarat-based company.

Highlighting the substantial investments made by Reliance, he revealed that the company has invested over $150 billion (Rs 12 lakh crore) into developing world-class assets and capabilities across India in the past decade. Significantly, Gujarat received more than one-third of this investment, underscoring the company’s commitment to the region.

Ambani said Gujarat will be a global leader in green growth and pledges to make the state a leading exporter of green products. Terming Gujarat a gateway of modern India’s growth, Ambani said that when the world thinks of new India, they also think of a new Gujarat, attributing the state’s transformation to Prime Minister Narendra Modi.

Tata’s semi-conductor plan unveiled at the Vibrant Gujarat Summit

Tata Sons chairman Chandrasekaran said the group will unveil plans for a new semiconductor fabrication plant in Gujarat later this year. This move is in line with Modi’s agenda of building capacity to manufacture chips in India.

Chandrasekaran also announced that Tata Motors will set up a factory to manufacture lithium-ion batteries in Sanand, Gujarat, with an initial manufacturing capacity of 20 gigawatt-hours to meet the growing demand for electric vehicles. The investment will occur in two phases, with work set to begin in the next couple of months.

In addition to these ventures, the Tata Group is engaged in the construction of the C295 defence aircraft in Vadodara, with plans to extend manufacturing operations to Dholera. Chandrasekaran also mentioned the upcoming launch of the first phase of the Indian Institute of Skills, a collaborative effort with central and state governments, in Gujarat by March 2024.

Spotlight of Vibrant Gujarat Summit; Adani Group

Gautam Adani announced an investment of more than Rs 2 lakh crore in Gujarat, with a focus on establishing a green energy park that boasts visibility even from outer space. Adani expects this initiative to create approximately 1 lakh jobs. Adani highlighted that out of the Rs 55,000 crore commitment made at the previous summit, Rs 50,000 crore has already been spent.

He further said that the Adani Group is expanding green supply chains including solar panels, green ammonia, hydrogen electrolysers and wind turbines to bolster the Aatmanirbhar Bharat pitch. Adani further explained, “We are expanding the green supply chain for an Aatmanirbhar Bharat and creating the largest integrated, renewable energy ecosystem.”

He added that the conglomerate is constructing the world’s largest green energy plant in the Khavda district of Gujarat’s Kachh. The plant, which is spread over 725 sq. km, will have a capacity of 30 GW of renewable energy.

Not only this, Adani also said that the Gujarat Summit is a successful venture because of Prime Minister Narendra Modi’s vision of “merging grand ambition, massive scale, meticulous governance and a flawless execution”. He further claimed India’s GDP has grown by 185 per cent since 2014 and per capita income by 165 per cent.

He called these achievements as “unparalleled” given the geopolitical conflicts and the coronavirus pandemic that marked this decade. The Adani Group boss also hailed Prime Minister Narendra Modi for the addition of the Global South to the G20 group of nations during India’s presidency.

Suzuki bets on growth; unveils plan in Vibrant Gujarat Summit

Toshihiro Suzuki, president of Suzuki Motor Corp., announced that Maruti Suzuki India Ltd, the company’s local unit, will invest Rs 35,000 crore to set up its second manufacturing facility in Gujarat as it looks to ramp up annual production capacity to over 40 lakh units by 2030-31. The new plant is expected to start operation in FY2028-29.

The investments will see the company’s annual production capacity in Prime Minister Narendra Modi’s home state jump to 2 million vehicles from 750,000 currently. Toshihiro Suzuki, also said the group’s first battery electric vehicle will be rolled out from Maruti’s existing plant in Gujarat by the end of the year.

In addition to being sold in India and Europe, the car will be exported to Japan – marking the first time for Maruti to export to its parent company’s home country. Maruti, which commands more than 40 per cent market share in the world’s third-largest auto market, plans to have six EV models by 2030.

Suzuki said Maruti – which is mainly based in India’s Harayana state – had come a long way. “It is noteworthy that as compared to 10 years ago, we expect 1.7 times in vehicle production and 2.6 times in export sales in the current fiscal year,” he said.

Mittal make biggest steel factory; discloses plans at Vibrant Gujarat Summit

ArcelorMittal executive chairman Lakshmi Mittal said the company will build the world’s single-biggest steel factory at Hazira in Gujarat by 2029. The factory will have a capacity to produce 24 million tonnes per annum.

The steel baron said that the first phase of the steel manufacturing site will be completed by 2026 whereas the second phase, marked by a Memorandum of Understanding (MoU), will be completed by 2029. Once operational, the expanded manufacturing facility will produce around 24 million tonnes (MT) of steel, making it the world’s largest steel manufacturing site.

In October 2022, ArcelorMittal arm ArcelorMittal Nippon Steel (AMNS) India had announced an investment of around Rs 60,000 crore to scale up the capacity of the steel plant to 15 MT, company chairman Aditya Mittal told PTI at the time. The investment was for installation of new steel making technologies, setting up new-age machineries and increasing product mix.

“Hazira expansion was inaugurated by PM in 2021. Phase one will be completed by 2026, 2nd phase MoU signed, will be completed by 2029 and will produce 24 mn tonnes steel and it will become the world’s biggest plant,” Lakshmi Mittal said at the summit.

Another semi-conductor plant divulged in Vibrant Gujarat Summit

Micron Technology Chief Executive Officer (CEO) Sanjay Mehrotra praised the government’s vision to make India a global hub for semiconductors. In September, the US chipmaker started construction of a $2.75 billion semiconductor testing and packaging facility in Gujarat’s Sanand. Of this, Micron will invest $825 million (approximately Rs 6,760 crore), with the government subsidising the rest in two phases.

“The first phase, with 5,00,000 square feet of planned clean room space, will be operational by early 2025. Hiring has already begun, and we estimate that this project will create 5,000 new direct jobs for Micron here in Sanand, Gujarat, and will also create an additional 15,000 community jobs over the coming years,” said the CEO.

Under the “Modified Assembly, Testing, Marking and Packaging (ATMP) Scheme” initiated by the Indian government, Micron will receive substantial fiscal support. The central government will contribute 50 per cent of the total project cost, while the state of Gujarat will provide incentives representing 20% of the total project cost. This combined support is expected to reach up to $2.75 billion over both phases of the project.

Sanjay Mehrotra expressed his gratitude for the support from the Indian government, emphasising that this backing will not only fund the project but also facilitate access to crucial semiconductor infrastructure and resources.