State Introduction 1. Why Tamil Nadu 1. Raw Material Base 2. Production Clusters 4. Agricultural Marketing 6. Processing Clusters 6.

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2 Table of contents State Introduction 1 Why Tamil Nadu 1 Raw Material Base 2 Production Clusters 4 Agricultural Marketing 6 Processing Clusters 6 Infrastructure 8 State Government Initiatives 12 Snapshot of Investable Projects 15 References 17 Investment environment and opportunities in food processing-tn 1

3 State Introduction Tamil Nadu shares its borders with Kerala on the West, Karnataka on the North West, Andhra Pradesh on the North, the Bay of Bengal on the East and the Indian Ocean on the South. It is one of the southernmost states of India and its capital is Chennai. Tamil Nadu is the only state in India which has both the Western and the Eastern Ghat mountain ranges. Tamil Nadu- key highlights State capital Chennai Geographical area 1 Population (Census 2011) 2 1,30,058 sq. kms mn USD bn ( ) Gross state domestic product (GSDP) 3 CAGR 9.81%; ( to ) Per capita income 4 USD 2,284 ( , at current prices) FDI inflows 5 USD 23,760 mn ( to ) Total road length (kms) 6 2,61,100 Rail length (route kms) Costal length 8 Airports 9 1,076 Kms International Chennai, Coimbatore, Tiruchirapalli, Madurai Domestic Chennai, Tuticorin, Salem Tamil Nadu Chennai Why Tamil Nadu 1 Leading player in agro-processing sector contributing 7% in India s food processing output- Rank 1 in the production of Banana, Tapioca, Cloves; Rank 2 in the production of Maize, Tamarind ; Rank 3 in the production of Grapes, Gram, Pepper, Turmeric 10 2 Robust infrastructure - 1 mega food park; 8 industrial parks, 4 agri-export zones 11 ; only Indian state with 4 international airports connecting with 20 countries; 3 rd largest power generation capacity 3 Presence of leading brands in the state - ITC, PepsiCo, Haldiram s, Suguna Foods, Mondelez, Dabur, Lotte, Aachi Masala, McRennett, Capricorn Foods Investment environment and opportunities in food processing-tn 1

4 Raw material base (share of agriculture) Tamil Nadu has a huge agricultural base and contributes 8.7% to India s GDP ( ) The share of agriculture in the state s GSDP is 7.3% ( ). The state contributes about 3% to India s foodgrain produce, 7% to vegetable produce and 12 % to fruit produce. SNAPSHOT OF LAND UNDER CULTIVATION 12 Arable land 5,829 Net sown area 4,714 Total area sown 5,897 ( , 000 hectare) The state favors cultivation of a multitude of crops, vegetables and fruits with seven agroclimatic zones 13 North Eastern Zone District: Kancheepuram, Tiruvallur, Cuddalore, Villupuram, Tirunvannamalai, Vellore North Western Zone District: Dharmapuri, Krishnagiri, Salem, Namakkal (Part) Western Zone District: Coimbatore, Tiruppur Erode, Karur, Theni, Namakkal (Part), Perambalur, Ariyalur Cauvery Delta Zone District: Thanjavur, Nagapattinam, Tiruvarur, Trichy, Karur, Ariyalur, Pudukkottai, Cuddalore Southern Zone District: Madurai, Sivagangai, Ramanathapuram, Tirunelveli, Virudhunagar High Rainfall Zone District: Kanyakumari, Chinnakallar Hilly Zone District: Nilgiris, Kodaikanal (Dindigul) The state is a major producer of fruits (such as Banana, Mango, Papaya, Sapota, Watermelon); vegetables (such as Tapioca, Tomato, Brinjal, Beans, Cabbage, Ladyfinger) and spices (such as Garlic, Turmeric, Ginger, Tamarind and Chillies). Some of the major plantation crops cultivated in the state include Tea, Coffee and Cashew, and the leading cash crops of the state are Cotton, Sugarcane and Oilseeds. Investment environment and opportunities in food processing-tn 2

5 Raw material base (2/2) Key production highlights ( ) 10 of the state include: One of the largest contributor to Fish production Rank 2 in the production of Coconut Total production of 11,941 thousand tonnes of food grains- Rank 2 in production of Ragi Total production 6,635 thousand tonnes of fruit- Rank 1 in production of Banana Total production 6,976 thousand tonnes of vegetables- Rank 1 in production of Tapioca The key production statistics for the state (year ) are presented as below: CROPS ( 000 tonnes) Sugarcane Maize 2, Rice Groundnut FRUITS ( 000 tonnes) Banana 4, Papaya Mango Sapota VEGETABLES ( 000 tonnes) Tapioca 2, Onion Tomato Brinjal LIVESTOCK & FISHERIES Milk 7244 (mn tonnes) Fish Marine : 0.45 mn tonnes In-land : 0.24mn tonnes Eggs 0.16 mn Meat 542 ( 000 tonnes) Source: MOSPI Investment environment and opportunities in food processing-tn 3

6 Production clusters The indicative production clusters in Tamil Nadu 14 include: Sugarcane/ Rice Papaya Ariyalur, Coimbatore, Cuddalore, Dharmapuri, Dindigul, Erode, Kanniyakumari Maize, Ground nut Erode, Dharmapuri, Vellore, Salem, Coimbatore, Theni, Tiruppur, Coimbatore Sapota Ariyalur, Coimbatore,Cuddalore, Dharmapuri, Dindigul, Erode, Kanchipuram, Karur Onion Perambalur, Tiruppur, Dindigul, Namakkal, Tiruchirappali, Tiruneleveli, Coimbatore, Erode, Tomato Dharmapuri, Salem, Krishnagiri, Tiruppur, Coimbatore, Vellore, Theni, Dindigul, Mango Thiruvallur, Vellore, Dharmapuri, Dindigul, Tirunelveli Eggs Dindigul, Vellore, Theni, Namakkal, Tirunelveli, Virudhnagar, Madurai, Salem, Tapioca Nilgiris, Kanchipuram, Thiruvallur, Vellore, Krishnagiri, Dharmapuri, Tiruvannamalai, Villupuram Banana Brinjal Theni, Tiruchirappalli, Coimbatore, Tuticorin, Pudukkottai, Erode, Dharmapuri, Vellore, Tuticorin, Pudukkottai, Salem, Krishnagiri, Madurai, Tiruvannamali Namakkal, Erode, Dharmapuri, Milk Karur, Salem, Tiruchirapalli, Coimbatore, Krishnagiri Salem, Villupuram, Vellore, Tiruppur, Erode, Coimbatore Meat Tiruppur, Erode, Coimbatore, Namakkal, Vellore, Salem, Chennai Investment environment and opportunities in food processing-tn 4

7 Investment environment and opportunities in food processing-tn 5

8 Agriculture marketing Various marketing infrastructure facilities have been created in the state considering the demand of the farming community and marketable surplus of farm produce. There are 278 regulated markets, 179 farmer markets in the state. By 2024, food processing levels in Tamil Nadu is predicted to increase manifold. The state has 371 Farmer Producer Organizations Processing clusters Some of the major processing clusters in the state include: Manufacturing and exporting of Processed milk frozen fruits Rice Madurai, Salem, Coimbatore Tirunelveli, Madurai, Thoothukudi, Thiruvannamalai Krishnagiri, Kancheepuram, Thiruvallur Poultry farming, processed chicken Namakkal, Erode, Chennai Fats and oils, and fat emulsion Kanyakumari, Thiruvallur, Namakkal Turmeric Ramnad, Virudhunagar, Erode, Salem Chillies Pulp mango Chennai, Erode, Thiruvallur Krishnagiri Fish processing Kanyakumari, Cuddalore, Thoothukudi, Chennai Husk Tirunelveli, Madurai, Thoothukudi, Thiruvannamalai, Erode, Salem Bran oil Tirunelveli, Madurai, Thoothukudi, Thiruvannamalai, Erode, Salem Dairy Products and analogues Coimbatore, Erode, Namakkal, Kancheepuram Investment environment and opportunities in food processing-tn 6

9 Investment environment and opportunities in food processing-tn 7

10 Infrastructure The status of key physical and agricultural infrastructure in Tamil Nadu is as follows: Parameter Status Inland container depots * 7 19 Existing Industrial Areas/ SEZs Installed power 22 Electricity cost 23 Water rates 12 industrial parks 4 agri export zones 20 1 food parks Thermal MW Hydro MW Renewables MW Utilities Cold storage and dairies with chilling plants: Category Power rates LT Industry HT Industry 6.35 Meter rent: Category Power rates Rural local bodies 3.00/KL Urban local bodies 4.50/KL Industries/commercial organizations 15.00/KL ( proportionate cost of CWSS) Industries / commercial 60.00/KL organizations ( not have proportionate cost of CWSS) A number of industrial areas and food parks are available in the state for investors keen on setting up food processing units. The key food parks include: S. No. Food Park Location Area (in acres) Project Cost (Rs. in crore) MoFPI Subsidy (Rs. in crore) 1 Ratnatray Mega Food Park Pvt. Ltd Village Akkarai Sengapally, Annur Taluka, District Coimbatore (In principle approval only given) Investment environment and opportunities in food processing-tn 8

11 In addition to the above, land is also available at various industrial parks/ growth centres across the state. S. No. Industrial Park/Growth Centre Location Owner/ Developer Type Total Area (acres) 1 Thervoy Kandigai Industrial Complex* Tiruvallur SIPCOT Multi-product manufacturing 1,127 Mappedu Industrial Complex Tiruvallur SIPCOT Multi-product manufacturing, Nonpolluting 3 Madurai Tuticorin Industrial Corridor Madurai SIPCOT Industrial and Multi product, NonpPolluting 1,478 4 Tuticorin Industrial Park Ottapidaram Taluk, Thoothukudi District SIPCOT Multi-product 1,533 5 Coimbatore Salem Industrial Park Perundurai in Erode District SIPCOT Industrial and Multiproduct 1,257 6 Chennai RanipetHosur Industrial Corridor Cheyyar Taluk, Thiruvannamalai District, Ranipet SIPCOT Multiproduct 4,883 7 Perambalur SEZ Project Perambalur District TIDCO Multiproduct SEZ 2,880 * Thervoy Kandigai Industrial Complex 1,127 acres available There are 9 cold chain units set up with assistance from MoFPI 16 S. No. Cold Chain Project Location Type Project cost (INR crore) Grant sanctioned (INR crore) 1 Farm Fresh Banana Theni F&V Frozen Fruits and Vegetables Metttupalayam 3 SKM Animal Feeds and Foods (India) Limited Chennai, Coimbatore, Madurai, Hosur, Trichy, Tuticorin, Salem F&V F&V Investment environment and opportunities in food processing-tn 9

S. No. Cold Chain Project Location Type 4 ABT Industries Limited* Coimbatore 5 Hatsun Agro Product Ltd* Kanchipuram and Palacode Dairy Dairy Project cost (INR crore) Grant sanctioned (INR crore) 38.

12 S. No. Cold Chain Project Location Type 4 ABT Industries Limited* Coimbatore 5 Hatsun Agro Product Ltd* Kanchipuram and Palacode Dairy Dairy Project cost (INR crore) Grant sanctioned (INR crore) Marble Valley Foods and Beverages Private Limited* Tirunilveli Marine Britto Sea foods Exports Pvt Ltd* Tuticorin Fishery Aachi Masala Foods Pvt. Ltd* Thiruvallur F&V Monsoon Bounty Foods Manufacturing Pvt. Ltd* Thiruvallur Marine F&V: Fruits and vegetables * Under implementation Investment environment and opportunities in food processing-tn 10

13 Investment environment and opportunities in food processing-tn 11

State government initiatives (1/2) The state government has undertaken a number of reforms to offer an enabling and investorfriendly business climate for investors keen on setting up business in the

14 State government initiatives (1/2) The state government has undertaken a number of reforms to offer an enabling and investorfriendly business climate for investors keen on setting up business in the state: List of documents: Easing of registration norms for SSI/ MSME wanting to start business operations. Single window clearance facility is available for all statutory clearances and approvals. The regulations have been eased to obtain no objection certificate for construction, license, power and water connections Helpline number : Dedicated helpline to resolve queries regarding the application and approval process Portal to start operation online : Simplified trade procedures for facilitating exports Tariff data : Enhanced transparency on tariff rates with online availability of information on effective tariff (and notification of change, if any, ahead of billing cycle) Single window facilitation Investment environment and opportunities in food processing-tn 12

15 State government initiatives (2/2) The government has been taking many steps to promote and facilitate the growth of food processing industries. Key incentives available for such industries under the industrial policy of the state are summarized in the table below: Key incentives Industrial Policy, 2012 Capital Investment Subsidy New or expansion manufacturing units to be given a back ended subsidy ranging from INR crore New or expansion manufacturing units located under SIPCOT Industrial parks in respect of A& B districts will be provided an additional subsidy of 50% over and above the eligible limit Manufacturing units located in B&C districts are provided with additional capital subsidy of 10% and 25% respectively over and above the eligible limit 25% capital subsidy on the value of eligible plant and machinery upto INR 30 lakhs : To MSMEs in industrially backward blocks and agro based enterprises Electricity Duty Exemption Electricity tax exemption on power purchased from the Tamil Nadu Generation and Distribution Corporation ltd ranging from 2-5 years 100 percent for upto 5 years depending on the size of capital investment Power Subsidy 20 percent low tension power tariff subsidy for the first 36 months from the date of commencement ( MSME in industrially backward blocks and agro based enterprises) Waiver of Land Conversion Fee Stamp Duty and Registration Fee Waiver Other incentives District A and B : 50 percent exemption Ultra-mega projects : 100 percent exemption Environmental Protection Infrastructure Subsidy of INR 30 lakhs or 25% of capital cost in setting up ETP/HWTSDF Technology upgradation - Environmental Protection Infrastructure Subsidy of INR 30 lakhs or 25 percent of capital cost in setting up ETP/HWTSDF Technology upgradation- 25% additional capital subsidy on the plant and machinery installed to promote clean environment up to INR 3 lakhs ( MSME in Industrially Backward blocks and Agro based enterprises ) Employment generation related incentives - 5% additional employment intensive subsidy on the value of eligible plant and machinery for providing employment to 25 workers for 3 years within the first 5 years, subject to maximum of INR 5 lakhs ( MSMEs for Industrially backward blocks and Agro based enterprises) Investment environment and opportunities in food processing-tn 13

16 Promote women entrepreneur - 5% additional capital subsidy on the value of eligible plant and machinery for enterprises set up by women subject to a maximum of INR 2 lakhs (MSMEs for Industrially backward blocks and Agro based enterprises) Net output VAT + CST paid will be given as investment promotion subsidy/soft loan. This is increased if they double their employment Uninterrupted power supply will be given to projects set up in Southern districts Single window clearance for MSME projects by Department of Industries District Industries Centre-Single Window Clearance Committee (SWCC) Developed food processing investment centre (FPIC) a single point of contact (one stop shop). Leverage NMFP schemes for attracting investments into the state through appropriate stakeholder sensitization programs MSE-CDP Schemes ( micro and small enterprises cluster development programme), Integrated Infrastructure upgradation scheme Investment environment and opportunities in food processing-tn 14

17 Snapshot of potential investable projects Tamil Nadu offers tremendous opportunities for investment across the entire value chain in the food processing sector. An indicative list of potential projects for investment is presented in the table below: Project name Turmeric Processing Mango Processing Sago & Starch Processing Plant Fish Processing Processed Products Turmeric powder Mango pulp, jam, squash, concentrate,mango jelly (using the system of Ultra High Density plantation) Starch & Sago, wet Sago starch, Sago flour processing, Sago trunks are cut into shorter and processed, coating Starch paper and organic glue alternative for PVA based glue Canned and tinned Fish, ready to retail processed Seafood Value Proposition Global market size is expected to reach USD 99.3 mn by 2024 Turmeric is a very popular spice in India, which produces nearly the whole world s crop (82% of the global output). India is by far the largest producer and exporter of Turmeric in the world. It occupies about 6% of the total area under spices and condiments in India. Tamil Nadu is one of the largest producers of this spice in the country World demand for Mangoes is on the rise and is expected to increase. International trade in mangoes will amount to USD 1,799,000 mn in 2029 India produces 40% (approx) of the total world production of Mango and is a major exporter of Mango pulp in the world. The state producers variety of Mangoes Global Tapioca market is expected to grow at a CAGR of around 3% by 2021 India ranks 25 th in area, 11 th in production of Tapioca (34.95 tonnes/ha). These factors along with suitable weather conditions makes it most suited to explore emerging and developed economies. Tamil Nadu is one of the largest producers of Tapioca Global market for fish processing is projected to reach USD bn by 2021, at a CAGR of 3.8% from 2016 to 2021 and is projected to reach 37, KT in terms of volume by 2021, at a CAGR of 2.2% India is one of the fastest growing retail markets for processed fish due to changing lifestyle, increased incomes, increasing health awareness, rising demand Investment environment and opportunities in food processing-tn 15

18 Project name Rice Mill Cashew Processing Processed Products Edible Rice free of husks, stones and other foreign material, Rice bran, Rice bran oil, Rice flour and hulls, Rice starch, broken Rice, brewers Rice, rough Rice Raw cashew nuts, salted cashew nuts, paste, cashew curries, cashew nut shell liquids Value Proposition With the world s population predicted to reach 8.27 billion by 2030, demand for Rice is expected to increase by approximately 100 mn tonnes to 550 mn tonnes in the same period India has emerged as the top rice exporter and is expected to grow at a CAGR of 3.51% by Tamil Nadu is one of the largest producers in the country of different varieties of Rice Globally, the demand for Cashew nut has shot up 53% since Cashew ranks third in world production of edible nuts that are traded globally. World trade in edible nuts has experienced relatively rapid growth, averaging about 2.7 % per year. Worldwide, trade in Cashews exceeds US$2 bn and its demand is increasing. India s share in the world Cashew nut market is at 23% and is the 2 nd Cashew producer in the world. Further, India accounts for more than 50% of the global cashew exports. Tamil Nadu is one of the largest producers of cashew in the country Investment environment and opportunities in food processing-tn 16

19 References ; Vision 2023 Tamil Nadu government, shared by the state government Investment environment and opportunities in food processing-tn 17

20 Disclaimer Without limiting the rights under the copyright reserved, this publication or any part of it may not be translated, reproduced, stored, transmitted in any form (electronic, mechanical, photocopying, audio recording or otherwise) or circulated in any binding or cover other than the cover in which it is currently published, without the prior written permission of MoFPI. EY and CII. All information, ideas, views, opinions, estimates, advice, suggestions, recommendations (hereinafter content ) in this publication should not be understood as professional advice in any manner or interpreted as policies, objectives, opinions or suggestions of EY and CII. Readers are advised to use their discretion and seek professional advice before taking any action or decision, based on the contents of this publication. The content in this publication has been obtained or derived from sources believed by EY and CII to be reliable but MoFPI, EY and CII do not represent this information to be accurate or complete. MoFPI, EY and CII do not assume any responsibility and disclaim any liability for any loss, damages, caused due to any reason whatsoever, towards any person (natural or legal) who uses this publication. This publication cannot be sold for consideration, within or outside India, without express written permission of MoFPI, EY and CII. Violation of this condition of sale will lead to criminal and civil prosecution. Ministry of Food Processing Industries, Confederation of Indian Industry (CII) and Ernst & Young (EY) 2017 Investment environment and opportunities in food processing-tn 18

TRANSFORMING THE FOOD ECONOMY 3-5 November, 2017 Vigyan Bhawan, New Delhi, India About World Food India A global event to facilitate partnerships between Indian and international businesses and

Write to us at: Ministry of Food Processing Industries, Government of India Panchsheel Bhawan, New Delhi, India.

21 TRANSFORMING THE FOOD ECONOMY 3-5 November, 2017 Vigyan Bhawan, New Delhi, India About World Food India A global event to facilitate partnerships between Indian and international businesses and investors, World Food India (WFI) is a gateway to the Indian food economy and an opportunity to showcase, connect, and collaborate. Write to us at: Ministry of Food Processing Industries, Government of India Panchsheel Bhawan, New Delhi, India. Telephone Number: / / / Find us at: Department of Agriculture & Cooperation SH-104, Thiruvathiyur Ponneri Road, Minjur, Thiruvallur Tamil Nadu Find us at Investment environment and opportunities in food processing-tn 19

Animal Husbandry, Dairying and Fisheries (Poultry) Department. G.O. (Ms.) No.106 Dated:

Animal Husbandry, Dairying and Fisheries (Poultry) Department. G.O. (Ms.) No.106 Dated: ABSTRACT,, Animal Husbandry Scheme for Poultry Development Establishment of Poultry Clusters at Sankarankoil and Villupuam Areas at a total cost of Rs.22.35 crores - Orders Issued. - - - - - - - - - -