Analysis Of B To G Business Opportunities In Maharashtra State


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Analysis Of B To G Business Opportunities In Maharashtra State

  1. 1. Analysis Of B to G BusinessOpportunities in Maharashtra State A Report For XXXXX Company By SUMIT KUMTHA
  2. 2. SITUATION ANALYSIS:Analysis of B to G Business Opportunities in Maharashtra State:Maharashtra State:Maharashtra is one of Indias leading industrial states. Over 41% of the S&P CNX500 conglomerates have corporate offices in Maharashtra. In 2012 Maharashtra nreported a revenue surplus of 152.49 crore (US$27.6 million), with a total ,revenue of 136,711.70 crore (US$24.74 billion) and a spending of136,559.21 crore (US$24.72 billion). 24.72Maharashtras legislature is bicameral, one of the few states in India to have a ,bicameral type. The Vidhan Sabha (Legislative Assembly) is the lower house )consisting of directly elected members.The Vidhan Parishad (Legislative Council is the upper house, whose members are Legislative Council) ouse,indirectly voted through an electoral college. The government of Maharashtraconsists of 27 cabinet ministers and 10 ministers of state.
  3. 3. Business Opportunites in Maharashtra Government Sector Sector:With an annual spending of 136,559.21 crore (US$24.72 billion) the government 24.72sector in Maharashtra provides a very lucrative business opportunity to theprivate sector.Apart from the various government departments, PSU’s and local governmentbodies like municipal corporations, municipalities and zhilla parishads are veryattractive markets for various private players.Maharashtra also has a substantial number of cash rich and well fundedGovernment Agencies and Organizations, along with various Productionco-operative societies, government educational institutes, colleges, schools and euniversities.Market Segmentation: Based on the opportunities available in thegovernment sector business the market can be classified as follows. business, Maharashtra Maharashtra Government Government Agencies and Sector Organizations Maharashtra Ministries of Local Governing State Public Production Co- Co-Operative Government of Bodies Sector operatives Banks Maharashtra Undertakings Municipal Municipal Zilla parishad Corporations Councils
  4. 4. List of Departments, Government of Maharashtra:Following are the various Departments or Ministries of Government ofMaharashtra.1. General Administration Department2. Home Department3. Revenue Department4. Forest Department5. Agriculture Department6. ADF Department7. School Education and Sports Department8. Urban Development Department9. Finance Department10.Public Works Department11.Water Resources Department
  5. 5. 12.Law and Judiciary Department13.Industries Department14.Energy Department15.Labour Department16.Rural Development and Panchayat Raj Department17.Food, Civil Supplies and Consumer Protection18.Planning Department19.EGS and Water Conservation Department20.Social Justice and Special Assistance Department21.Housing Department22.Water Supply and Sanitation23.Public Health Department24.Medical Education and Drugs Department25.Tribal Development Department26.Environment Department27.Co-operation and Marketing Department28.Textiles Department29.Higher and Technical Education30.Women and Child Development Department31.Employment And Self Employment Department32.Tourism and Cultural Affairs Department33.Minority development dept34.Marathi Language Department35.Excise Department36.Transport Department37.Information Technology
  6. 6. Local Governing Bodies:Maharashtra has one of the richest local governing bodies like BMC, TMC etc. ThePimpri Chinchwad Municipal Corporation is regarded as one of the richest in theworld. Mentioned below is the list of municipal corporations in Maharashtra.Municipal Corporations: ions: 1. Mumbai 2. Thane 3. Mira-Bhayandar 4. Navi Mumbai 5. Kalyan-Dombivli 6. Ulhasnagar 7. Bhiwandi-Nizampur 8. Vasai-Virar 9. Pune 10.Pimpri-Chinchwad 11.Kolhapur 12.Sangli-Miraj-Kupwad 13.Solapur 14.Ahmednagar 15.Nashik 16.Malegaon 17.Jalgaon 18.Dhule 19.Aurangabad
  7. 7. 20.Nanded-Waghala 21.Parbhani city 22.Latur 23.Akola 24.Amravati 25.Nagpur 26.ChandrapurMunicipal Councils in Maharashtra:Smaller Urban areas are governened by Municipal councils or Municipal Boardsalso called just Municipalities. Municipalities are also subdivided into Wards,which may be grouped together into Ward Councils. One or more corporators areelected to represent each ward. Currently in Maharashtra there are 222municipalities.
  8. 8. Area Number of Municipal councils Nashik 8 Konkan 27 Western Maharashtra 41 Vidarbha 61 Marathwada 51Zilla parishad:Zilla Parishad (commonly known as ZP) is a local government body at the districtlevel in India. It looks after the administration of the rural area of the district andits office is located at the district headquarters. There are 33 Zilla parishad inMaharashtra, one each in every district.Apart from the above mentioned bodies there are various other organizationsthat look after various aspects of administration of a city, as in the case ofMumbai. These organizations are also important prospects for any vendor whointends to target the government sector.
  9. 9. Budgets: All local government bodies receive funds from state government aswell as from centre apart from this; all of them have their own funds.
  10. 10. MAHARASHTRA STATE PUBLIC SECTOR UNDERTAKINGS:The government of Maharashtra owns a large number of Public SectorUndertakings comprising of government companies and statutory corporations.These companies too are very attractive prospects for any vendor in terms ofvolume and value of sales that could be generated from these organizations. 1. The State Industrial & Investment Corporation Of Maharashtra Limited (SICOM) 2. Maharashtra Industrial Development Corporation (MIDC) 3. Maharashtra State Financial Corporation 4. MAHARASHTRA ECONOMIC DEVELOPMENT COUNCIL (MEDC) 5. SMALL INDUSTRIES SERVICE INSTITUTE 6. Maharashtra State Electricity Distribution Company Ltd.(MSEDCL) 7. UDYOG MITRA 8. Maharashtra State Electricity Board 9. MSRTC 10.MTDC 11.Maharashtra Airport Development Company Limited 12.Maharashtra State Road Development Corporation Limited 13.Maharashtra Film, Stage and Cultural Development Corporation Limited 14.Shivshahi Punarvasan Prakalp Limited 15.City and Industrial Development Corporation of Maharashtra Limited
  11. 11. 16.Maharashtra Agro Industries Development Corporation Limited17.Maharashtra State Mining Corporation Limited18.Maharashtra Rajya Itar Magas Vargiya Vitta Ani Vikas Mahamandal Limited19.MAFCO Limited20.Maharashtra Electricity Regulatory Commission21.Maharashtra Knowledge Corporation Limited (MKCL)22.Maharashtra State Co-operative Tribal Development Corporation Limited23.Maharashtra State Police Housing and welfare corporation24.Western Maharashtra Development Corporation25.Development Corporation of Kokan Limited26.Maharashtra Small Scale Industries Development Corporation Ltd.27.Maharashtra Seeds Corporation28.Mahatma Phule Backward Class Corporation29.MAHARASHTRA STATE FARMING CORPORATION LTD30.Maharashtra Housing & Area Development Authority31.City and Industrial Development Corporation of Maharashtra (CIDCO)32.Kolhapur Chitranagari Mahamandal33.Forest Development Corporation of Maharashtra Ltd34.Maharashtra Land Development Corporation Ltd35.Maharashtra Fisheries Development Corporation Ltd36.Maharashtra Jeevan Pradhikaran37.Maharashtra Agro Industries Development Corporation38.Maharashtra State powerloom Corporation39.Maharashtra Petrochemicals Corporation Ltd.40.Maharashtra Electronics Corporation Ltd.41.Maharashtra State Warehousing Corporation Ltd.42.Devgiri Textile Mill Aurangabad43.Kalmeshvar Textiles Kalmeshvar44.Pratap Mills Amalmer45.Maharashtra State Textile Corporation Ltd.46.Maharashtra State Farming Corporation47.Development Corporation of Vidarbha Ltd48.Konkan Irrigation Development Corporation Ltd.49.Leather Industries Development Corporation of Maharashtra Limited.50.Haffkine Bio Pharmaceutical Corporation Ltd.51.Maharashtra State Handlooms Corporation Ltd.52.Vidarbha Irrigation Development Corporation
  12. 12. 53.Maharashtra State Road Development Corporation Ltd. 54.Tapi Valley Development Corporation 55.Maharashtra Mendhi Va Sheli Vikas Mahamandal Ltd. 56.Maharashtra Krishna Valley Development Corporation 57.Konkan Development Corporation Ltd. 58.Maharashtra Maritime Board 59.Mahila Arthik Vikas Mahamandal 60.Lokshahir Annabhau Sathe Development Corporation Limited. 61.Vasantrao Naik Vimukt Jati and Normatic Tribes Development Corporation Ltd.Maharashtra Government Agencies and Organizations:Maharashtra has a large web of various government agencies and organizations. 1. Ground Water surveys and Development Agency Government of Maharashtra. 2. Maharashtra Energy Development Agency (MEDA) 3. Yashwantrao academy of development training 4. Government of Maharashtra Directorates 5. Government Printing Press 6. Mumbai Heritage Conservation Committee (MHCC)
  13. 13. Co - Operative banks in Maharashtra:Co -Operative banks are also a prospect which should be pursued most of thesebanks are controlled by political figures of various political parties.Production Co-Operatives:Production co-operative society’s deals with the activities related to agriculturaland industrial production. Various types of Production Co-operatives working inState are sugar factories, spinning mills, hand-loom, power-loom, cotton ginningand pressing, oil mills, rice mills, processing Co-operatives, etc. 1. Co-operative Sugar Factories 2. Co-operative Spinning Mills 3. Primary Handloom Co-operative Societies
  14. 14. 4. Primary Power-loom Co Co-operative Societies. 5. Cotton Ginning and Pressing Co Co-operative Societies. 6. Co-operative Oil Mills. operative 7. Maharashtra Rajya Machhimar Sahakari Sangh Ltd 8. Fisheries Co-operative Central and Primary Societies operative 9. Dairy Unions in Maharashtra State. 10. Co-operative Dairy So operative Societies 11. Maharashtra State Co Co-op. Consumers Federation Ltd 12. Co-operative Consumers’ Societies (Wholesale) operative 13. Primary Co-operative Consumers’ Societies operative 14. Women Co-operative Societies. operative 15. Co-operative Lift Irrigation Societies operative 16. Pri. Industrial Co-op. Societies (Other than Weavers) op. 17. Forest Labors Co-operative Societies operativeMaharashtra Government Educational Institutes, Colleges andUniversities:Maharashtra has a large number of government aided collages, schools, traininginstitutes and universities. These collages, schools, training institutes and .universities are an important market segment.
  15. 15. Market Characteristics:Government Sector is characterized by prolonged buying cycle on account ofbureaucratic red tape, but due to availability of funds the sector is recessionproof. Another aspect of this sector is the volume of sales. One of the most importantchallenges faced by a vendor while selling to the government is identifying thekey decision makers on account of the complex organization structure prevalentin most government departments.Below are mentioned few such org charts, as it is necessary to have a fairunderstanding of the organization structures of various departments.
  16. 16. Current Trends:Most government buying decision are based on government policy or cabinetdecisions. Current state of affairs also largely influence buying decisions, forexample the power crisis in the state of Maharashtra has compelled the
  17. 17. government to proactively promote solar power in the state as a result thegovernment is trying to provide solar power to every district through 100%subsidy through ZP. It has opened up a huge market for companies related to thisindustry. Similarly with the current drought situation there is a probability of largefunds being channeled to ministries like agriculture, tribal, welfare, forest etcthereby increasing the probability of acquiring large projects from theseministries.Technology Factors:Technical Capability and availability of resources play a key role in bagging largenumber of projects; previous experience of executing such a project is alwaysdesirable. Also past experience of having successfully executed a governmentproject is beneficial.
  18. 18. Financial Capabilities:Financial capability and the financial health of an organization plays a key role inacquiring any government project, hence the organization should be financiallystable and competent to execute the order.Competitive Landscape:On account of the nature and size of the government sector, it has always beenvery attractive business segment to a large number of companies. The currenteconomic environment prevalent globally has further intensified completion inthis segment. Large number of companies are aggressively pursuing this sector.Recently companies like TCS, Accenture and Capgemini have acquired largegovernment accounts.
  19. 19. Costumer Analysis:Buying by all government bodies is done through tenders and rate contracts. ButZP’s do not procure through tenders. In case of ZP’s it is necessary that the vendormust be registered with MADC, MIDC or Marketing Federations. Onlymanufactures can register with MADC and MIDC. But Marketing Federationallows distributors to register with them; the only condition is that they should bedistributors of products manufactured in Maharashtra.