Compendium of financing options for the food processing sector

Transcription

1 Investment Environment & Opportunities in Food Processing Compendium of financing options for the food processing sector MAHARASHTRA Knowledge Partner Ministry of Food Processing Industries Government of India National Event Partner

2 Table of contents State Introduction 2 Why Maharashtra 2 Raw Material Base 3 Production Clusters 6 Agricultural Marketing 8 Processing Clusters 9 Infrastructure 11 State Government Initiatives 15 Snapshot of Investable Projects 17 Contact Us 18

3 2 State Introduction Maharashtra is situated in the western region of the country a long coastline stretching nearly 720 km along the Arabian Sea. It is surrounded by Gujarat to the North West, Madhya Pradesh to the north, Chhattisgarh to the east, Telangana to the south east, Karnataka to the south and Goa to the south west. Maharashtra s gross state domestic product (GSDP) accounted for 12.98% of India s gross domestic product (GDP) in , the highest among all states. Maharashtra is the third largest state in area and second largest state in population of India. The 45% population of the state is urban. State capital Geographical area 1 Population 2 (Census 2011) Gross state domestic product (GSDP) 3 (At current price, base year ) Per capita income 4 (Measured as Per Capita NSDP at current prices for ) FDI inflows 5 Mumbai 307, 713 Km² Maharashtra - key highlights Crore** (112 Million) INR Crores** (USD Billion) in at current price. INR (USD 1769) per annum INR 5, 47,733 crores** (USD 4.7 Billion) FY2000-FY2017 Total road length (Kms) 6 Rail length (route Kms) 7 Ports 8 53 Airports 9 4,71,265 Km Km Five Maharashtra Mumbai Why Maharashtra 1 Largest contributor to India s GSDP, a large industrial base with 11% share of India Industrial sector. 2 A state with 9 agro climatic zones and a long coastline stretching nearly 720 km along the Arabian Sea. 3 Mumbai, the capital of Maharashtra houses the headquarters of most of the major corporate & financial institutions. India's main stock exchanges and capital market and commodity exchanges are located in Mumbai. 4 Well-developed infrastructure, abundant natural resources, connectivity to all major areas and skilled human resource make it an ideal investment destination. *1 Million= 10 lakhs ** 10 Million = 1 crore 2

4 3 Raw material base (1/3) Maharashtra s economy is primarily agricultural and rural. Agriculture is major occupation of the people in Maharashtra. Both food and cash crops are grown in the State. Agriculture & Allied Activities sector has average share 10 of 11.8 per cent in the total GSVA and is growing at an average annual rate of 1.7 per cent. The average share of GSVA of Industry sector is 33.8 per cent and its average annual growth rate is 5.8 per cent. GSVA of Services sector has an average share of 54.4 per cent in the total GSVA. Sahyadri, the hilly ranges running parallel to the coast at an Snapshot of Land under Cultivation (Year ) Gross Cropped Area ( 000 Ha) Net Sown Area ( 000 Ha) No. Of Rgd Farmer Producer Companies 23,106 17,386 average elevation of 1,200 meters (4,000 ft.) divides Maharashtra in two parts geographically, (i) Konkan coastal plains, kilometers in width and around 720 km in length to the west and (ii) Deccan Plateau (Western Ghats) to the east. The Konkan is dotted with paddy fields and coconut gardens. The Western Ghats form one of the three watersheds of India, from which many South Indian rivers originate, forming one of the greatest river basins in India Maharashtra has nine 12 agro-climatic zones 13 with typical monsoon climate, with hot, rainy and cold weather seasons. South Konkan coastal zone: North Konkan coastal zone Western Ghat zone Transition zone - 1 Transition zone - 2 Scarcity zone Assured rainfall zone Moderate rainfall zone Eastern Vidarbha zone The state produce variety of cereals, fruits, vegetables fisheries and livestock Principal crops of Maharashtra include rice, jowar (sorghum), bajra (pearl millet), pulses, and sugarcane and oil seeds such as groundnut, sunflower and soybean. The state has huge areas under fruit and vegetable cultivation with large production of fruits such as mangoes, bananas, grapes, oranges, and vegetables such as onion and tomatoes.

5 4 Raw material base (2/3) Major strength of Maharashtra s food processing industry lies in the following: Cereals- Rice, wheat Nutri-cereals- Pearl millet (Bajra) and Sorghum other small millets Fruits and Vegetables - Mangoes, Bananas, Grapes, Oranges, Onion and Tomatoes. Oilseeds- Groundnut, Sunflower and Soybean Pulses 14 - Pigeon pea, Chickpea, Green gram (Moong), Black gram (Moth) Commercial crop- Sugar, cotton Livestock & fisheries: Milk, fisheries, meat and eggs Food Grains: Key production highlights 15 ( ) Total production of Lakh* MT of food grains Cereals: Total production of Lakh* MT Rice (25.93 Lakh* MT), Wheat (9.8 Lakh* MT), Sorghum (12 Lakh* MT) Pulses: Total production of Lakh* MT Commercial Crops: Key production highlights 16 ( ) Sugar Cane: Total production of Lakh* MT Cotton: Total production of Lakh* MT Groundnut: Total production of 0.33 Lakh* MT Horticulture products: Key production highlights ( ) Total 9.09 Lakh hectare land under fruit crops in Area under Various Fruit Crops (Lakh Hectare) Mango Orange Sweet Orange Pomegranate Banana Sapota Grapes

6 5 Raw material base (3/3) Milk & Fisheries: Key production highlights ( ) Total production of 74 Lakh* MT of Milk Total number of livestock: million (Livestock Census 2012) Total number of poultry: million (Year 2003) Total production of fishes 5.8 Lakh* MT Marine & Inland Marine: 4.34 Lakh* MT 1.12 Lakh* sq. km marine fishing, 173 fish landing Centers Inland: 1.46 Lakh* MT 30 fish seed production centres; 2,414 Lakh* spawn production capacity Cereal, Pulses, Oilseeds (000 MT) Pigeon pea Soybean , FRUITS (000 MT) Grapes Pomegranates Banana 2, , , VEGETABLES (000 MT) Onion 5, Chillies Capsicum LIVESTOCK & FISHERIES Egg Marine Fisheries Poultry(Meat) 4, million 4.24 lakh* MT 1.44 lakh* MT

7 6 Production Clusters The major production 17 clusters 18 of Maharashtra are given below: Nasik is known as the Grape capital of India Several Agriculture produces of Maharashtra are registered with GI Pomegrantes Nashik, Jalna, Ahmednagar, Pune Pigeon Pea Latur, Akola, Buldhana, Amravati, Nanded Capsicum Papaya Amravati, Nashik, Pune, Solapur Nandurbar, Dhule, Akola, Jalgaon Onion Jalgaon, Nashik, Aurangabad, Ahmednagar Milk Pune, Satara, Sangli, Kolhapur, Sholapur, Osmanabad, Nasik Banana Fisheries Akola, Jalgaon, Nanded, Pune Thane, Raigarh, Ratnagiri, Sindhudurg Grapes Nasik, Ahmednagar, Pune, Satara, Solapur and Osmanabad

8 7 Production Clusters

9 8 Agriculture marketing Maharashtra has the following marketing facilities in the state: 19 : 306 main market yards and 596 sub market yards, Eight Agri-Export Zones for grapes, grapevine, pomegranate, onions, mangoes. Vapor Heat Treatment Facility prevents fruit fly and helps promote exports of mangoes Six National Research Centers - Cotton, Orange, Pomegranate, Grape, Onion & Soil Survey Investment in onion storage infrastructure Soil Testing Labs 118 (29 Public, 89 Private), Residue Testing Labs Two, Bio- control lab 10, Fertilizer testing labs - Five Pesticide Testing Labs Four, Seed Testing Labs Three, Agro polyclinic main market yards > 200 medium and large units 596 sub market yards Agricultural markets in Maharashtra Eight Agri Export Zones Six crops focussed R&D centers 118 Soil testing labs

10 9 Processing Clusters (1/2) Chilly Powder Processing Dhule, Pune, Kohlapur Sugar Processing from Jaggery Kohlapur, Pune, Satara Fruits Processing Beverages Pune, Aurangabad Nashik, Raigad, Solapur Pulses Processing Bakery Products Greater Mumbai, Jalgaon, Jalna Nagpur, Jalgaon Prepared Foods Rice Mills Gondia, Gadchiroli Dhule, Beed Geographical Indication for Agricultural Products in Maharashtra 20 Nasik Grapes Mangalwedha Jowar Waigaon Turmeric Waghya Ghevada Jalgaon Banana Solapur Pomegranate Jalna Sweet Orange Sindhudurg & Ratnagiri Kokum Nagpur Orange Kolhapur Jaggery Beed Custard Apple Nashik Valley Wine Mahabaleshwar Strawberry Ajara Ghansal Rice Sangli Raisins Navapur Tur Dal Marathwada Kesar Mango Ambemohar Rice Lasalgaon Onion Purandar Fig Dahanu Gholvad Chikoo Bhiwapur Chilli Vengurla Cashew Jalgaon Brinjal

11 10 Processing Cluster (2/2) Maharashtra is host to more than 10,000 companies in the food processing sector with a number of multinational companies having their production facilities. Also, some of the famous food processing clusters include: Nashik Wine cluster Pune Food Processing Cluster An indicative of key companies and their district of presence in the state is given below. Dairy products and Analogues Schreiber Dynamix Diaries Pvt. Ltd. Chitale Foods Seven Seas International Osmanabad, Aurangabad Pune Greater Mumbai Bakery Products Reliance F&B services Ltd Bakewell Products PBS Gourmet Foods Kolhapur Greater Mumbai Greater Mumbai Others Stayfit Enterprize Pvt Limited Dates Delight Ferrero India Pvt. Ltd. Pune Pune Pune Famous Traditional Food of Maharashtra Shrikhand: Srikhand is an Indian sweet delicacy from Maharashtrian cuisine/ western India, made of hung & strained yogurt flavoured with saffron and cardamom. Puran Poli: Puran Poli is a sweetened roti/ chapati stuffed with delicious sweet filling made of channa dal and jaggery. Vada Pav: Vada Pav is one of the most popular fast food snacks in Maharashtra. This snack is locally known as the common man s Indian Burger which consists of a spicy, deep fried potato based patty (vada), sandwiched between a thick square of bred similar to a burger bun (Pav).

12 11 Processing Clusters

13 12 Infrastructure The status of key physical and agricultural infrastructure in Maharashtra is as follows: Parameter Inland container depots (ICD) 21 Status Nine ICDs, Three (Miraj, Bhusawal & Dronagri Node) Under Container Cooperation India, Six Private: Panvel; Pune; Nagpur; Borkedi (near Nagpur); Tarapur, Thane; Butibori, Nagpur Existing Industrial Areas/ SEZs Upto 31 Dec 2015, 25 SEZs were executed with total investment of INR 32,255 crore** (USD 4.72 Billion) on an area of 3,059 Ha The total 69 SEZs were approved with proposed investment of INR 97,624 crores** (USD Billion) Food Parks 22 There are three Mega Food parks in Maharashtra, Aurangabad, Satara and Wardha.Several other food parks and Industrial areas are present too Details of food park with available land are given below. Installed power 23 (Including allocated shares in Joint & Central Sector Utilities as on 31 March 2017) Electricity cost 24 Thermal MW, Nuclear-690 MW, Hydro MW, RES MW Utilities HT I - Industry Continuous Industry (on express feeder) INR 150 per kva per month: INR 430 (USD 6.61) Non-continuous Industry (not on express feeder) INR 150 per kva per month: INR 395 (USD 6.07) Seasonal Industry INR 150 (USD 2.31) per kva per month: 500 Water rates 25 Non Domestic rates- up to first 15 INR 9 (USD 0.14) per 1000 litres

14 13 List of Food Parks/ Industrial Areas suitable for Food Processing in in Maharashtra District Type of Food Parks Name of Food Parks Aurangabad Mega Food Park Paithan Mega Food Park Private Limited Total Land Available Area (Ha) (Ha) Aurangabad Industrial Estate Siddeshwar Co-op. Industrail Estate Bid Food Park Kada Gramudyog Co-Op. Industrial Estate Bid Food Park Yogeshvari Co-Op Industrial Estate. Buldana Industrial Estate Govindrao Bhatiya co.op industrial estate ltd Gondiya Industrial Area Gondia Industrial Area Jalgaon Industrial Estate Sawada phejpur parisar co.op industrial estate Nashik Food Park Additional Vinchure Industrial Area Nashik Food Park Shree Samarth Co-Op. Industrial Estate Raigarh Industrial Area TALOJA Industrial Area Raigarh Special Economic JNPT SEZ Zones Satara Mega Food Park Satara Mega Food Park Private Limited Satara Food Park Koyana Co-Op. Industrial Estate Thane Industrial Area Additional Ambernath Industrial Area Wardha Mega Food Park Wardha Mega Food Park Private Limited Yavatmal Food Park Tukaram Rajappa Padgilwar Co-Op. Industrial Estate Cold Chains 26 : The objective of the Scheme of Cold Chain, Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer. Below is the list of cold chains present in the state:

15 14 S.no Project Type of Food Product District 1 B. Y. Agro & Infra Pvt. Ltd. Mixed (Dairy, F&V) Nagpur 2 Blue Fin Frozen Pvt. Ltd. Fishery Raigad 3 Baramati Agro Limited Meat & Poultry Pune 4 Cold Star Logistics Pvt. Ltd. F&V Raigad 5 D.J. Exports Pvt.Ltd. F&V Thane, Pune 6 Elaf Cold Storage Mixed (Meat, F&V) Raigad 7 Forstar Frozen Food Pvt. Ltd. Fishery Navi Mumbai 8 Freshtrop Fruits Ltd. F&V Nashik 9 Global Foods Pulses, F&V, Spices Nagpur 10 Gonglu Agro Pvt Ltd F&V Nashik 11 Haldiram Foods Intl. Limited F&V Nagpur 12 I.G. International F&V Amravati 13 Indapur Dairy & Milk Products Ltd Dairy Pune 14 Mhetre Foods Pvt. Ltd F&V Pune 15 Omni Fresh Agro F&V Nashik 16 Saastha Warehousing Ltd F&V Raigad 17 Savla Foods & Cold Storage Pvt Ltd F&V Mumbai 18 Saikrupa Industries Dairy Nashik 19 Satec Envir Engineering (I) Pvt. Ltd F&V Nashik 20 Shivtirth Dairy & Agro Producers Company Ltd Dairy Sangli 21 Sunfresh Agro Industries Pvt. Ltd Dairy Ahmednagar 22 Swaraj India Industries Ltd. Dairy Satara 23 Tirupati Balaji Agro Products Pvt. Ltd. F&V Pune 24 VaishVik Foods Pvt.LTd. F&V Satara 25 Warana Dairy & Agro Industries Ltd, Dairy Sholapur 26 Western Hill Foods Ltd F&V Pune 27 Western Superfresh Corporation Meat, Poultry & Dairy Raigad 28 Rishi Ice and Cold Storage Pvt. Ltd. F&V Navi Mumbai 29 Farmico Cold Storage Pvt. Ltd. F&V Nagpur 30 Balmer Lawrie & Co. Ltd. F&V Raigad 31 Ananth Dudh Pvt Ltd Dairy Pune 32 S.R. Thorat Milk Products Pvt. Ltd. Dairy Ahmednagar 33 RGA Fresh Fruits Pvt. Ltd. F&V Thane 34 Prabhat Dairy Ltd Dairy Srirampur 35 Kool Solutions India Pvt. Ltd. Mixed Mumbai 36 Kaira District Co-operative Milk Producers' Union Ltd Dairy Pune 37 P.D. Shah and Sons Cold Storage Pvt. Ltd. F&V Satara 38 Manganga Dairy Industries Dairy Solapur 39 Kisan Mitra Cold Storage Private Limited, F&V Latur 40 Nature Delight Dairy & Dairy Products Private Limited Dairy Pune 41 Vaishno Devi Food Products Pvt Ltd Dairy Osmanabad 42 Seasaga Enterprises Pvt. Ltd Marine Raigad 43 Siva Sai Exports F&V Nashik 44 Swapnapurti Food Products Pvt. Ltd. Dairy Chandrapur 45 Vaishnavi Grape & Pomegranate Processing Pvt Ltd F&V Solapur 46 Royal Cold Chain F&V Solapur 47 Sri Sri Milk and Food Product Dairy Pune 48 Varun Agro Processing Foods Private Limited F&V Nashik 49 Bharti Global Food Products Pvt. Ltd. Dairy Beed Total 49, completed 26, ongoing 23

16 15 Infrastructure

17 16 State government initiatives (1/2) MAHARASHTRA STATE INDUSTRIAL POLICY, 2017 Maharashtra Agro-Processing and Agri-Marketing Promotion Policy State government announced a Package Scheme of Incentives. The scheme covers cold storages and mechanized food/agro processing industries in addition to other industries. It offers Financial Incentives linked to fixed capital, Industrial Promotion Subsidy (IPS), exemption from electricity duty, waiver of stamp duty, power tariff subsidy, capital subsidy to MSME for technology up gradation; quality certification; cleaner production etc. Quantum of these incentives varies with turnover and location of the industry. Single window clearances Digitalizing Land Records: Property registration application and payment has been made online Single window form available for processing of investment application Single log in for providing seamless access to investors The registration process to avail incentives has been simplified and the number of documents required has been reduced substantially. The Union Ministry of Food Processing has listed Maharashtra among the 4 states with potential to derive maximum benefits from policy reforms in food processing. The inadequate food processing sector also is a primary reason for poor remunerations farmers get. They cannot bargain in absence of robust market linkages.

18 17 State Government Initiatives (2/2) Highlights of Maharashtra State Industrial Policy Name of Policy Maharashtra State Industrial Policy Sector Nodal Department Capital Subsidy* Interest Rebate/Subsidy Agro Industries And Food Processing Department of Agriculture To support the MSE-CDP clusters in backward areas of Maharashtra to the extent of 10% of the project cost, in addition to Central funding 5% interest subsidy on term loans for fixed capital investment for 5 years Stamp duty & Reg. fee exemption Electricity Duty exemption Land Related Concession/Exemption New Units as well as Units undertaking Expansion/ Diversification (including Mega and Ultra Mega Projects) will be exempted from payment of Stamp duty during the Investment period in Group C, D, D+ Talukas, No Industry Districts and Naxalism affected areas. However, in Group A and B areas, stamp duty exemption would be available as given below: BT Manufacturing and IT Manufacturing Units in Public Parks : 100% BT Manufacturing and IT Manufacturing Units in Private Parks : 75% Mega Projects - 50% for first conveyance deed only All Eligible New Units in Group C, D, and D+ areas and No-Industry District(s) and Naxalism affected Area will be exempted from payment of Electricity Duty during eligibility period not exceeding 15 years The State Government will reimburse 50% of the space rent, etc. with a ceiling of INR 1,00,000 (USD 1,538) per year Reimbursement on Transportation Technology up-gradation and R&D related Incentives Link of policy document NA 5% subsidy on capital equipment for Technology Up gradation, subject to a maximum of INR 25,00,000 (USD 38,444) 25% subsidy on capital equipment for cleaner production measures,limited to INR 5,00,000 (USD 7,689) Id=5&subid=4&sub2id=5&FileName=20july.PDF 3.pdf/92daf854-d017-40a e4065f25c2

19 18 Snapshot of Potential Investable Projects Maharashtra offers diverse set of investment opportunities in the food processing sector. An indicative list of potential projects for investments is presented below: Project name Establishment of Maize Value Added Products Unit Setting up a Health Drink Manufacturing Plant Establishment of Fruit Processing Unit Establishment of Baker s Yeast Unit Establishment of Freeze Dried Fruit Processing Unit Process-able Products/ infrastructure Maize Fruits Value Proposition Value added products from Maize Project envisages bottling plant for beverages Fruits Manufacturing unit focusing on pulp, squash/ juices, jam & jellies, pickles, etc. Yeast The manufacturing unit can focus on production, processing, marketing, export of Yeasts Fruits Freeze dried food products have some of the highest per unit value and it will also give us the ability to export products and explore markets otherwise inaccessible Development of Fishing Development of fishing harbours on PPP mode to help Fishing Harbours exploit the fishing potential Malting Unit Coarse Grains Malting is a good option for value adding to coarse grains Cold Storage Processors, Multimodal Logistics Park(MMLP) Industries in line with proposed sectors, Contractors for implementing trunk infrastructure, PPP developers, Master Developer, Equipment suppliers, Consultants for Techno-Economic Feasibility Study, FIs and PE firms. It's a Joint Venture Company(JVC, a 50% equity holding company for DMIC and State Government)

20 19 References http:// 20Regulation%202010%20-%20English.pdf 26

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22 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. Ministry of Food Processing Industries, Government of India Panchsheel Bhawan, New Delhi, India. Telephone Number: / / / Find us at: