Analysis Of B To G Business Opportunities In Maharashtra State
1. Analysis Of B to G Business
Opportunities in Maharashtra State
A Report For XXXXX Company
By
SUMIT KUMTHA
2. SITUATION ANALYSIS:
Analysis of B to G Business Opportunities in Maharashtra State:
Maharashtra State:
Maharashtra is one of India's leading industrial states. Over 41% of the S&P CNX
500 conglomerates have corporate offices in Maharashtra. In 2012 Maharashtra
n
reported 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 of
136,559.21 crore (US$24.72 billion).
24.72
Maharashtra's 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 Maharashtra
consists of 27 cabinet ministers and 10 ministers of state.
3. Business Opportunites in Maharashtra Government Sector
Sector:
With an annual spending of 136,559.21 crore (US$24.72 billion) the government
24.72
sector in Maharashtra provides a very lucrative business opportunity to the
private sector.
Apart from the various government departments, PSU’s and local government
bodies like municipal corporations, municipalities and zhilla parishads are very
attractive markets for various private players.
Maharashtra also has a substantial number of cash rich and well funded
Government Agencies and Organizations, along with various Production
co-operative societies, government educational institutes, colleges, schools and
e
universities.
Market Segmentation: Based on the opportunities available in the
government 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. List of Departments, Government of Maharashtra:
Following are the various Departments or Ministries of Government of
Maharashtra.
1. General Administration Department
2. Home Department
3. Revenue Department
4. Forest Department
5. Agriculture Department
6. ADF Department
7. School Education and Sports Department
8. Urban Development Department
9. Finance Department
10.Public Works Department
11.Water Resources Department
5. 12.Law and Judiciary Department
13.Industries Department
14.Energy Department
15.Labour Department
16.Rural Development and Panchayat Raj Department
17.Food, Civil Supplies and Consumer Protection
18.Planning Department
19.EGS and Water Conservation Department
20.Social Justice and Special Assistance Department
21.Housing Department
22.Water Supply and Sanitation
23.Public Health Department
24.Medical Education and Drugs Department
25.Tribal Development Department
26.Environment Department
27.Co-operation and Marketing Department
28.Textiles Department
29.Higher and Technical Education
30.Women and Child Development Department
31.Employment And Self Employment Department
32.Tourism and Cultural Affairs Department
33.Minority development dept
34.Marathi Language Department
35.Excise Department
36.Transport Department
37.Information Technology
6. Local Governing Bodies:
Maharashtra has one of the richest local governing bodies like BMC, TMC etc. The
Pimpri Chinchwad Municipal Corporation is regarded as one of the richest in the
world. 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. 20.Nanded-Waghala
21.Parbhani city
22.Latur
23.Akola
24.Amravati
25.Nagpur
26.Chandrapur
Municipal Councils in Maharashtra:
Smaller Urban areas are governened by Municipal councils or Municipal Boards
also called just Municipalities. Municipalities are also subdivided into Wards,
which may be grouped together into Ward Councils. One or more corporators are
elected to represent each ward. Currently in Maharashtra there are 222
municipalities.
8. Area Number of Municipal councils
Nashik 8
Konkan 27
Western Maharashtra 41
Vidarbha 61
Marathwada 51
Zilla parishad:
Zilla Parishad (commonly known as ZP) is a local government body at the district
level in India. It looks after the administration of the rural area of the district and
its office is located at the district headquarters. There are 33 Zilla parishad in
Maharashtra, one each in every district.
Apart from the above mentioned bodies there are various other organizations
that look after various aspects of administration of a city, as in the case of
Mumbai. These organizations are also important prospects for any vendor who
intends to target the government sector.
9. Budgets: All local government bodies receive funds from state government as
well as from centre apart from this; all of them have their own funds.
10. MAHARASHTRA STATE PUBLIC SECTOR UNDERTAKINGS:
The government of Maharashtra owns a large number of Public Sector
Undertakings comprising of government companies and statutory corporations.
These companies too are very attractive prospects for any vendor in terms of
volume 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. 16.Maharashtra Agro Industries Development Corporation Limited
17.Maharashtra State Mining Corporation Limited
18.Maharashtra Rajya Itar Magas Vargiya Vitta Ani Vikas Mahamandal Limited
19.MAFCO Limited
20.Maharashtra Electricity Regulatory Commission
21.Maharashtra Knowledge Corporation Limited (MKCL)
22.Maharashtra State Co-operative Tribal Development Corporation Limited
23.Maharashtra State Police Housing and welfare corporation
24.Western Maharashtra Development Corporation
25.Development Corporation of Kokan Limited
26.Maharashtra Small Scale Industries Development Corporation Ltd.
27.Maharashtra Seeds Corporation
28.Mahatma Phule Backward Class Corporation
29.MAHARASHTRA STATE FARMING CORPORATION LTD
30.Maharashtra Housing & Area Development Authority
31.City and Industrial Development Corporation of Maharashtra (CIDCO)
32.Kolhapur Chitranagari Mahamandal
33.Forest Development Corporation of Maharashtra Ltd
34.Maharashtra Land Development Corporation Ltd
35.Maharashtra Fisheries Development Corporation Ltd
36.Maharashtra Jeevan Pradhikaran
37.Maharashtra Agro Industries Development Corporation
38.Maharashtra State powerloom Corporation
39.Maharashtra Petrochemicals Corporation Ltd.
40.Maharashtra Electronics Corporation Ltd.
41.Maharashtra State Warehousing Corporation Ltd.
42.Devgiri Textile Mill Aurangabad
43.Kalmeshvar Textiles Kalmeshvar
44.Pratap Mills Amalmer
45.Maharashtra State Textile Corporation Ltd.
46.Maharashtra State Farming Corporation
47.Development Corporation of Vidarbha Ltd
48.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. 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. Co - Operative banks in Maharashtra:
Co -Operative banks are also a prospect which should be pursued most of these
banks are controlled by political figures of various political parties.
Production Co-Operatives:
Production co-operative society’s deals with the activities related to agricultural
and industrial production. Various types of Production Co-operatives working in
State are sugar factories, spinning mills, hand-loom, power-loom, cotton ginning
and 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. 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
operative
Maharashtra Government Educational Institutes, Colleges and
Universities:
Maharashtra has a large number of government aided collages, schools, training
institutes and universities. These collages, schools, training institutes and
.
universities are an important market segment.
15. Market Characteristics:
Government Sector is characterized by prolonged buying cycle on account of
bureaucratic red tape, but due to availability of funds the sector is recession
proof.
Another aspect of this sector is the volume of sales. One of the most important
challenges faced by a vendor while selling to the government is identifying the
key decision makers on account of the complex organization structure prevalent
in most government departments.
Below are mentioned few such org charts, as it is necessary to have a fair
understanding of the organization structures of various departments.
16.
17. Current Trends:
Most government buying decision are based on government policy or cabinet
decisions. Current state of affairs also largely influence buying decisions, for
example the power crisis in the state of Maharashtra has compelled the
18. government to proactively promote solar power in the state as a result the
government 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 this
industry. Similarly with the current drought situation there is a probability of large
funds being channeled to ministries like agriculture, tribal, welfare, forest etc
thereby increasing the probability of acquiring large projects from these
ministries.
Technology Factors:
Technical Capability and availability of resources play a key role in bagging large
number of projects; previous experience of executing such a project is always
desirable. Also past experience of having successfully executed a government
project is beneficial.
19. Financial Capabilities:
Financial capability and the financial health of an organization plays a key role in
acquiring any government project, hence the organization should be financially
stable and competent to execute the order.
Competitive Landscape:
On account of the nature and size of the government sector, it has always been
very attractive business segment to a large number of companies. The current
economic environment prevalent globally has further intensified completion in
this segment. Large number of companies are aggressively pursuing this sector.
Recently companies like TCS, Accenture and Capgemini have acquired large
government accounts.
20. Costumer Analysis:
Buying by all government bodies is done through tenders and rate contracts. But
ZP’s do not procure through tenders. In case of ZP’s it is necessary that the vendor
must be registered with MADC, MIDC or Marketing Federations. Only
manufactures can register with MADC and MIDC. But Marketing Federation
allows distributors to register with them; the only condition is that they should be
distributors of products manufactured in Maharashtra.