CONTENTS:
DEVELOPMENT OF FOOD PROCESSING SECTOR IN    1.    INRODUCTION TO INDIAN FOOD PROCESSING
            NORTH BENGAL & PROVISION OF           SCENARIO
   INFRASTRUCTURE FOR FOOD PROCESSING SEZ   2.    GOVT. POLICIES & INITIATIVES FOR FOOD
                                                  PROCESSING SECTOR
                      Prepared by:          3.    NORTH BENGAL : SITE & DEVELOPMENT POTENTIAL
                                                  ANALYSIS
              SHUBHRANEEL AICH              4.    NEED FOR PROJECT
                   10 ID 60 R15             5.    AIM, OBJECTIVES, SCOPE & LIMITATIONS
               R.C.G.S.I.D.M                6.    PROJECT METHODOLOGY
                                            7.    LITERATURE REVIEW
                                            8.    CASE STUDIES
                                            9.    DATA COLLECTION QUESTIONNAIRE
                                            10.   BIBLIOGRAPHY




                  M.TECH PROJECT
                  2011-2012
FACTORS IMPACTING FOOD PROCESSING SECTOR                        INTRODUCTION TO FOOD PROCESSING SCENARIO IN INDIA
                                                              Atta (1 Kg)                               Fruit Juice (1 L)                                        Potato Chips (35 gms)                                                        Jam (500 gms)
DEMAND CONDITIONS
                                                                                                        TOTAL ADDITION IN VALUE CHAIN : 60-75%                                                                                                                   81.48
 •   Rapid urbanization
 •   Rising per capita income                                                                                                                                                                                                                        10-15%
 •   More than 10% growth predicted                                                                                                                                                   20-30%
                                                                                                                                        10-15%
INDUSTRY STRATEGY & STRUCTURE                                                                                                                                                                                                                                       59.478
                                                                20-25%
 •   Industry is highly fragmented               9.75
 •   Very low FDI in food processing sector in
                                                 6                                                                                                                                                                                                                        18.43
     India
                                                 5.64
                                                 0.6                                                                                                                                                                                                                          10.4
FACTOR CONDITIONS
 •   Availability of natural resources




                                                                                 Movement to stockist




                                                                                                                                                                                                    Transportation
                                                                                                                            Processing cost




                                                                                                                                                                                                                                                                                     Retailer's margin
                                                                                                        Freight / Octoroi




                                                                                                                                              Excise duty

                                                                                                                                                            Packing material
                                                     Farmer




                                                                                                                                                                                                                                         Sales tax
                                                                                                                                                                               Processor's margin




                                                                                                                                                                                                                     Discount / Scheme




                                                                                                                                                                                                                                                       Distributor's margin
                                                                 Mandi charges
 •   However, the processing levels are low
 •   High level of wastage

RELATED AND SUPPORTING INDUSTRIES
 •   Presence of various institutions
 •   No significant evidence of coordination
     among the supporting bodies

GOVERNMENT                                                                                                                                                     VALUE                                                 WHOLE                              FOOD
                                                      FARM INPUTS                                          TRADE &
                                                                                                                                                             ADDITION /                                               SALE                             RETAIL &
 •   Tax holiday for new food processing               /SUPPLIER                                        DISTRIBUTION
                                                                                                                                                             PROCESSING                                              TRADE                             SERVICE
     units
 •   Liberalized overall policy regime                        = = = FLOW OF VALUE CHAIN ON FOOD PROCESSING = = =
STATUS FOOD PROCESSING SECTOR IN INDIA                                               MAJOR SEGMENTS IN FOOD PROCESSING
                                                                                                                                                            F & V Processing
7000                                                                                                                      9%     4%
                                                                                                                    3%                                      Food Grain Milling
                 Fruits & Vegetables
                                                                                                                                                            Dairy Products
                 Dairy Products
6000                                                                                                                                          34%           Meat & Poultry
                                                                                                          20%
                 Poultry Products
                                                                                                                                                            Fish Processing
                 Meat Products
5000                                                                                                          4%                                            Bread & Bakery
                 Other Processed Foods
                                                                                                                    10%                                     Alcoholic Beverages
                                                                                                                                   16%
                                                         CAGR                                                                                               Aerated water
4000
                                                                                                      0 Above figure represents the major segments in the food industry & their share
                                                          35%                                         in food processing sector

                                                                                                         STATE WISE SHARE OF FOOD PROCESSING
3000
                                                                                                                                                             Andhra Pradesh
                                                                                                                   16%              13%                      Gujarat
                                                                                                                                                             Karnataka
2000
                                                                                                          4%                                                 Madhya Pradesh
                                                                                                                                              13%
                                                                                                                                                             Maharashtra
                                                                                                        12%                                                  Punjab
1000                                                                                                                                            5%           Rajasthan
                                                                                                                                                             Tamil Nadu
                                                                                                             7%                              7%
                                                                                                                                                             Uttar Pradesh
   0                                                                                                               3%                                        West Bengal
                                                                                                                        6%        14%
           2003         2004          2005          2006           2007          2008          2009                                                          Others
0 Above figure represents the growth in food industry in terms of production value in INR Crores      0 Above figure represents state wise share in Food Processing Sector
GOVERNMENT OF INDIA SCHEMES / POLICIES FOR                  GOVT. POLICIES & INITIATIVES FOR FOOD PROCESSING SECTOR
DEVELOPMENT OF FOOD PROCESSING INDUSTRY:
Infrastructure:                                       EXISTING SCHEME UNDER 10th PLAN            PROPOSED SCHEME UNDER 11th PLAN
    Mega Food Parks Scheme (MFPS) to provide         Supply driven-not entrepreneur driven      Demand driven
     infrastructure along the value chain from farm
     to market.                                       Post marketed                              Pre marketed

    Scheme for cold chain, value addition and        Stand-alone (no backward and forward       Strong backward and forward linkages-
     preservation infrastructure                      linkages)                                  reliable and sustainable supply chain
    Capital Investment Subsidy For Construction /    No Project Development Agency              Project Management Agency (PM) (to
     Expansion / Modernization Of Cold Storages /                                                handhold from
     Storages of Horticulture Products.                                                          concept to commissioning)
                                                      No financial closure                       Financial closure to be ensured by the
    Scheme for Development/Strengthening of
                                                                                                 Project Management Agency
     Agricultural Marketing Infrastructure, Grading
                                                      Targeting small & medium enterprises       No restriction on the number of units-
     and Standardization.
                                                      with a minimum of 20 units for a 30 acre   restriction can be on the quantity of
Policies related to Quality Control & Testing         park                                       material to be handled
                                                      Activities confined to park alone          Complementary activities can take place
    Implementation of HACCP / ISO 22000, ISO
                                                                                                 outside the central park by creating the
     14000 / GHP / GMP Quality/ Safety
     Management System                                                                           required infrastructure in a well-defined
                                                                                                 Zone to be finalised after a feasibility
    Setting up / up gradation of Food Testing                                                   study.
     Laboratories.                                    Financial assistance 25% limited to Rs.4   Higher scale of assistance to meet 75% of
                                                      Crore inadequate to create the             the project cost with a ceiling of Rs. 50
    Schemes for Quality Development                  appropriate infrastructure                 crore per park (90% in difficult areas).
GOVT. POLICIES & INITIATIVES FOR FOOD PROCESSING SECTOR                                 VISION 2015
PROBLEMS OF TAXATION IN FOOD PROCESSING INDUSTRY:                                                    To realize the vast potential of Indian agriculture
•Customs tariff of 25-40 % on supply of raw material for packaging material.                         Increasing the size of the processed food sector
•Value added tax rate on processed food is 12.5 % - highest in the world.                             so as to
•Customs duty on import of machinery items by food processing industry is 20-25 %.                   Enhance farmer’s income
•Tax incidence on aseptic processing & filling equipment is about 40 %                                  Generate employment opportunities
PROBLEMS OF FINANCE FOR FOOD PROCESSING SECTOR:                                                         Provide to consumers at affordable price
•Banks use similar risk models for food processing sector as for manufacturing sector                   Contribute to overall national growth
•High operational / transaction cost in companies.
•Non availability of timely credit from organized sources; farmers rely on other sources.     OBJECTIVES
•Intermediary finance sources charge 4 times the interest rate as banks.
                                                                                                     Raise the level of processing of perishables from
FOREIGN DIRECT INVESTMENT POLICY:                                                                     6% to 20%
•Automatic approval for foreign equity up to 100%.                                                   Raise the level of value addition from 20% to
•FDI up to 100% is permitted under the automatic route in the food infrastructure .                   35%
•FDI policy does not permit FDI into Retail sector except Single Brand Product Retailing.            Raise the level of share in global food trade from
•No industrial license is required for almost all of the food & agro processing industries.           1.5% to 3%

INITIATIVES TAKEN FOR EXPORT PROMOTION:                                                              Processed foods market to increase to INR
                                                                                                      13,500 billion
•Free trade zones (FTZ) and export processing zones (EPZ) have been set up.
•Units in EPZ / FTZ and 100% Export oriented units can retain 50% of foreign exchange.               Share of value added products to grow from 38%
                                                                                                      to 58%
•50% production of EPZ / FTZ and 100% EOU units are saleable in domestic tariff area.
•Profits from such exports are also exempt from Minimum Alternate Tax (MAT).
b Following figures represent the comparison of Fruit &
Vegetable requirement vs. production showing the surplus
                                                                                                                                               NORTH BENGAL : DEVELOPMENT POTENTIAL ANALYSIS
availability in state of West Bengal




                                                                                                                                                                                                           (‘000 TONS)
                                                                                                                                                                                   VEGETABLE
                                                                                                                                    b Following map represents




                                                                                                                                                                                                            PRODUCE
                                                                                                                                                                                    FRUIT &




                                                                                                                                                                                                             ANNUAL
                                                                                                                                                                                                ‘000 HA.
                                                                                                                                                                         SYMBOL




                                                                                                                                                                                     CROP
                                                                                                                                    the major Fruit & Vegetable




                                                                                                                                                                                                  AREA
 Vegetable Requirement (tonnes per annum)
 Present Vegetable Production (tonnes per annum)                                                                                    production areas in West
                                                                                                                                    Bengal with area & amount
1200000                                                                                                                             of production
1000000
 800000
                                                                                                                                                                                  Mango          67.76       405.95
 600000                                                                                                                                                                           Pineapple      11.85       342.59
 400000
 200000
                                                                                                                                                                                  Banana         25.73       502.11
      0                                                                                                                                                                           Papaya          8.48       245.67
                  Darjeeling
                  Jalpaiguri
               Coochbehar




                                                                                                                                                                                  Orange          3.50        33.05
               Dinajpur (N)
               Dinajpur (S)
                    Malda
             Murshidabad
                   Nadia
          24 Parganas(N)
                                    24 Parganas(S)
                                                       Howrah
                                                                  Hooghly
                                                                             Burdwan

                                                                                        Birbhum
                                                                                                                                                                                  Guava           9.00       133.78
                                                                                                   Bankura

                                                                                                              Midnapore

                                                                                                                          Purulia
                                                                                                                                                                                  Jackfruit      10.42       143.47
                                                                                                                                                                                  Litchi          6.55        55.67
 Fruit Requirement (tonnes per annum)
 Fruit Production (tonnes per annum)
                                                                                                                                                                                  Coconut        30.56      4007.39
250000                                                                                                                                                                            Sapota          3.69        43.26
200000
                                                                                                                                                                                  Cashewnut       9.71         9.56
150000
100000
                                                                                                                                                                                  Tomato         47.63       748.60
 50000                                                                                                                                                                            Cabbage        70.69      1830.45
    0                                                                                                                                                                             Cauliflower    63.74      1649.37
                  Darjeeling
                  Jalpaiguri
               Coochbehar
               Dinajpur (N)




                                                                                                                                                                                  Radish         34.65       445.05
               Dinajpur (S)
                    Malda
             Murshidabad
                   Nadia
          24 Parganas(N)
                               24 Parganas(S)
                                                     Howrah
                                                                Hooghly

                                                                            Burdwan

                                                                                       Birbhum




                                                                                                                                                                                  Pea            24.58       114.52
                                                                                                  Bankura

                                                                                                             Midnapore

                                                                                                                          Purulia




                                                                                                                                                                                  Brinjal        145.6      2661.60
                                                                                                                                                                                  Onion          16.02       173.14
DEVELOPMENT POTENTIAL ANALYSIS
STRENGHTS                                          INDUSTRIAL POTENTIAL
 Low Development / Potential for growth is         Land availability for industrial purposes       CATCHMENT AREA FOR              EXISTING PROCESSING FACILITIES
  high                                               through SJDA                                        FOOD PARKS :                        No. of Units: 13
 Strategic location for international trade        Water supply through rivers & melted ice if   Pineapple 231900 tn. (72%)             Total Capacity: 720 Tn.
                                                                                                    Orange 33000 tn. (100%)
  with : Bangladesh, Bhutan, Nepal, South            required.
  East Asia, China & Europe.                        Accessibility : Roads - NH-31, N.H. 31-                                              RURAL MARKETS/MANDIS:
                                                                                                                                           Siliguri Regulated market
 Strategic location for promoting trade &           A, NH-55, S.H. 12, 12A. Rail linkages by                                                 (Pineapple, Oranges)
  development of North East Indian States.           Broad, Metre & Narrow gauge. Bagdogra
 Low population density; hence no                   domestic airport near Siliguri                                                             AGRI EXPORT ZONE:
  overburdening of natural resources.               Surplus power availability through                                                              Flowers -
                                                                                                                                                 Jalpaiguri, Siliguri
 Ideal weather conditions for social                substations. Thermal PowerStation                 AGRI EXPORT ZONE:
  development                                        planned in vicinity.                                  Pineapple -
                                                                                                     Jalpaiguri, Siliguri, Koch
 3 soil types in a fertile river valley provide    Tax benefits for area of Siliguri                Bihar, North Dinajpur
  good agricultural land.



WEAKNESSES                                         SUGGESTED INDUSTRIES                                                           EXISTING COLD STORAGE FACILITIES
                                                                                                                                            No. of Units: 10
 Low development in terms of all                   Export facilities for fresh fruits &                                             Total Capacity:111631.8 Tn.
  infrastructural facilities                         vegetables, flowers, tea
 No industrial raw material or industries          Food processing industries with export                                       EXISTING COLD STORAGE FACILITIES
 Lack of manual labor & technical manpower          motives                                                                                No. of Units: 25
                                                                                                                                      Total Capacity:286524.4 Tn.
 Presence of international borders may be a        Export / Import hub for trade with
  sensitive issue                                    Bangladesh, Bhutan, Nepal, South East                                              AGRI EXPORT ZONE:
 Terrain & topography are not ideal for large       Asia, China & Europe.                                                             Mango, Lychee - Malda
  scale developments.                               Secondary industries like wood
                                                                                                                                          RURAL MARKETS/MANDIS:
 Limited provisions for transport linkages like     works, pharmaceuticals, contractual
                                                                                                                                            English Bazaar Malda
  rail, roads & air transport                        cultivation of cash crops.                                                                (Mango, Litchi)
 Current political instability                     Other small scale industries such as
                                                                                                   CATCHMENT AREA FOR
                                                     sericulture, animal husbandry etc.                 FOOD PARKS :               EXISTING PROCESSING FACILITIES
                                                                                                   Mango 99400 tn. (24%)                   No. of Units: 20
                                                                                                    Litchi 10000 tn. (18%)             Total Capacity: 1970 Tn.
FOOD PROCESSING SECTOR                                                                                                 NEED FOR PROJECT
( Economic benefits for regional development )
Employment generation for population during construction & operational phase
                                                                                                                              High demand
Development of allied industries like Logistics , Packaging , Pharmaceutical , Steel
Infrastructural development for region in terms of Roads, Electricity, Water
Social infrastructure development in terms of Hospitals, Housing, Schools                Changing consumerism, high income         Demand for processed,
Increase in export / import of Processed Food products                                   levels with increasing disposable             and value - added
                                                                                          income, lifestyle changes, brand                       products
                                                                                                                            ESTIMATED
GOVT. POLICIES & INCENTIVES                                                               consciousness, healthy living
                                                                                                                            INVESTMENT
Provisions for industrial schemes such as : Food Park, MFPS, AEZ, SEZ, MMLH etc.
Tax rebates, Concessions, Subsidies for activities related to food processing
                                                                                                                            REQUIRED BY
Strengthening of Agricultural Marketing & Quality Control Infrastructure                                                      2015:
Development schemes for Logistics Infrastructure like Cold chain, Warehousing                      High returns in           EUR 22.9                       High
Financial support for Farmers, Developers, Industrial units, Logistic units                        terms of quality          BILLION                 investments
Special provisions in 11th 5yr plan for food processing sector                                     and brand
                                                                                                    loyalty building
REGION OF NORTH BENGAL: (Darjeeling, Jalpaiguri, Koch Bihar, Uttar                                                        Growing corporate sector
Dinajpur Dakshin Dinajpur, Maldah )                                                                                participation, improved infrastructure
Surplus Fruit & Vegetable Production                                                                             and supply chain, consolidation of agri -
Area also rich in medicinal plants, tea production, flouriculture activities & spices                                     marketing supply chain
Strategic location for export to Nepal, Bangladesh, Bhutan & other markets
                                                                                         FORWARD INTEGRATION:                BACKWARD INTEGRATION
Strategic location for import from China & South East Asia for Indian distribution
                                                                                          Selling in the Domestic            From farm to the Cold Store
Potential for industrial development
                                                                                           Market                            • Collection Points close to farms:
Availability of Transportation & Logistics
                                                                                         • Develop markets from              • Farmer not required to go to Market
                                                                                           existing levels                   • Transparency in prices
      FECILITATION OF           REGIONAL SOCIAL            INCENTIVES &                  • Reduce number of                  • Maintaining the Cold Chain Refrigerated
      LAND                      & ECONOMIC                 CONCESSIONS FOR                 middlemen                           logistics
      ACQUISITION &             DEVELOPMENT                FOOD PROCESSING                Selling in Foreign Markets         Developing Quality
      LEGAL PROCESS                                        INDUSTRIES                    • Developing International          • Better Varieties
                                                                                           Standards                         • Post Harvest Management
                                                                                         • Marketing on Competitive          • Education/Extension Programs: Eco-
       FACTORS FOR INDUSTRIAL ZONE FOR FOOD PROCESSING                                     Terms                               friendly, organic farming, tissue culture,
ANALYSING THE POTENTIAL OF DEVELOPING FOOD PROCESSING SECTOR                            AIM, OBJECTIVES, SCOPE & LIMITATIONS
  AREA APPRAISAL OF         ANALYSIS OF DEMAND/             GOVT. POLICIES &
                                                                                            AIM:
    NORTH BENGAL             EXPORT POTENTIAL                 INITIATIVES
                                                                                       Development of Food Processing Sector in North Bengal region &
CRITERIA FOR ANALYSIS       CRITERIA FOR ANALYSIS        CRITERIA FOR ANALYSIS         Designing of infrastructural services of a Food Processing SEZ.
• AVAILABILITY OF RAW       • QUANTITATIVE ANALYSIS      • SPECIAL AREA ALLOCATION          OBJECTIVES:
  MATERIALS                   OF PRODUCE                 • EXPORT & TAX INCENTIVES     1.    Identification of catchment areas & providing
• POTENTIAL OF AREA TO      • MARKET IDENTIFICATION IN   • INFRASTRUCTURE SCHEMES            development strategies for terminal markets, primary
  SUPPORT INDUSTRIES          INDIA/ABROAD               • AGRICULTURAL SCHEMES              processing centers, storage infrastructure, logistics &
• EXISTING OR PROPOSED      • IDENTIFICATION OF                                              transport linkages
  INDUSTRIES                  REQUIRED FINISHED                                        2.    Identification & delineation of site for SEZ, broad level
• EXISTING INFRASRTUCTURE     GOODS                                                          master planning of processing & non processing zones of
                                                                                             the SEZ & relevant surrounding areas
OBSERVATIONS:               OBSERVATIONS:                OBSERVATIONS:                 3.    Designing of Infrastructural services for SEZ Processing
• AREA RICH IN FRUIT &                                   • 2 FOOD PARKS, 1 SEZ,1 AEZ         zones
                            • LARGE MARKET FOR
  FLOWER PRODUCTION           EXPORT OF RAW &              PROPOSED                         SCOPE OF WORK:
• HAS ABUNDANCE &             PROCESSED GOODS            • PROPOSALS FOR MARKET        1.    Physical planning & design of SEZ infrastructure for
  VARIERY FOR EXPORT &      • DEMAND AREAS WITHIN          LINKAGES & COLD                   Processing zone of the SEZ
  PROCESSING                  COUNTRY & ABROAD             STORAGE CHAIN               2.    Master planning & development guidelines for Non
• LAND, POWER, WATER, HR    • ENOUGH SURPLUS             • EXPANDING CATCHMENT /             processing zone.
  AVAILABLE                   MATERIAL TO SUSTAIN          PRODUCTION AREAS            3.    Development guidelines for location PPCs / Terminal
• FEW EXISTING INDUSTRIES     PROCESSING SECTOR                                              markets & Logistic networks
                                                                                       4.    Areas of North Bengal i.e. Districts – Darjeeling , Jalpaiguri
RESULT:                     RESULT:                      RESULT:                             , Koch Bihar, North Dinajpur, South Dinajpur & Maldah
AREA FEASIBLE FOR           LARGE DEMAND OF              GOVT. POLICIES FAVOUR THE           have been considered under scope of planning
DEVELOPMENT OF LARGE        PROCESSED GOODS PROVIDE      DEVELOPMENT IN THS                 LIMITATIONS:
PROCESSING INDUSTRY         REQIRED MARKET               SECTOR                        1.    Financial viability of the project has been assumed
                                                                                       2.    Political disturbances, regional instability have not been
     NEED OF DEVELOPMENT OF LARGE SCALE INDUSTRIAL ZONE FOR FOOD                             accounted for in the project.
PROCESSING SECTOR IN THE AREA OF NORTH BENGAL FOR REGIONAL ECONOMIC &                  3.    Environmental policies for forest, high altitude, hills have
                          SOCIAL DEVELOPMENT                                                 not been considered.
PROJECT METHODOLOGY              STEPS FOR IMPLEMENTING INDUSTRIAL                           DEVELOPMENT OF THE FOOD
                                               FOOD PROCESSING ZONE
                                                                                           2             PROCESSING SEZ

     PROJECT BACKGROUND STUDY                 DEVELOPMENT GUIDELINES FOR PRIMARY                IDENTIFICATION & ANALYSIS OF
                                        1     PROCESSING CENTRES & LOGISTIC SYSTEM             INDUSTRIAL DEVELOPMENT SITES
                                                                                                     WITHIN THE REGION
                                       IDENTIFICATION OF CATCHMENT AREAS BY USING
     ESTABLISH NEED FOR PROJECT        G.I.S. MAPPING OF RELATIVE CONSTRAINTS /             PHYSICAL DELINEATION OF SITE INTO
                                       FACTORS (BLOCK WISE)                                  PROCESSING & NON-PROCESSING
                                                                                                          ZONES
                                                                 BLOCK POPULATION
 AIM, OBJECTIVES, SCOPE, LIMITATIONS                                                       BROAD ZONING AND PHASE PLANNING
                                                     BLOCK AREA UNDER AGRICULTURE                FOR BOTH ZONES WITH
                                                           TRANSPOTATION LINKAGES                  INFRASTRUCTURE
   PREPARE PROJECT METHODOLOGY
                                       LOCATION OF P.P.C. FOR EACH BLOCK IN ALL            PLOT ALLOTMENT AND DEMARKATION
                                       DISTRICTS BASED ON RELATIVE FACTORS USING            FOR VARIOUS TYPES OF INDUSTRIAL
                                       G.I.S.                                                            USES
 LITERATURE REVIEW OF RELATED ISSUES
                                                                 AGRICULTURAL AREA         PLANNING & DESIGNING OF VARIOUS
                                                                                              INFRASTRUCTURAL SERVICES &
                                                           LOCAL TERMINAL MARKETS                      FACILITIES
   CASE STUDIES RELATED TO PROJECT
                                                           TRANSPOTATION LINKAGES
                                                                                                        INFRASTRUCTURE:
                                       DESIGN OF A TYPICAL PRIMARY PROCESSING CENTRE AND                •POWER SUPPLY
PRIMARY & SECONDARY DATA COLLECTION    TERMINAL MARKET UNIT INCLUDING REQUIRED SERVICES                 •WATER SUPPLY
                                                                                                        •WASTE MANAGEMENT
                                       ANALYSE & PROPOSE DEVELOPMENT STRATEGY FOR THE                   •EFFLUENT TREATMENT
      PROJECT IMPLEMENTATION           TRANSPORTATION LINKAGES BETWEEN P.P.C. &                         •FIREFIGHTING SERVICES
                                       INDUSTRIAL AREA & REQUIRED COLDCHAIN FACILITIES                  •WAREHOUSES
                                                                                                        •COLD STORAGE
                                                     DESIGN OF A TYPICAL COLD CHAIN                     •TRANSPORT TERMINAL
       RESULTS & CONCLUSION                          FACILITY & PRIMARY PROCESSING                      •COMMON UTILITIES
                                                                            CENTRE
LITERATURE REVIEW : SEZ
                                      SEZ ENTITIES
                                                                                              SPECIAL ECONOMIC ZONE (SEZ) :

    SEZ DEVELOPER                 CO-DEVELOPER                             SEZ UNIT
                                                                                               Geographical region that has economic laws
                                                                                                different from a country’s generally applicable
                                                                                                economic laws.
                                                     NON PROCESSING AREA
           PROCESSING AREA                              SOCIAL INFRASTUCTURE
     MANUFACTURING & SERVICES UNITS                                                            Underlying objective being an increase in
                                                              HOTELS                            economic growth and activity through increased
       INFRASTRUCTURE FOR UNITS
                                                             HOSPITALS                          foreign investment.
                                                             HOUSING
                                                             SHOPPING                         Several other initiatives in past to boost exports in
                                                            RESIDENTIAL                       India before formation of SEZs:

            50 %                                              SCHOOL
                                            Infrastructure only to the extent approved by
                                            Board of Approvals qualifies for the tax
                                            concessions & exemptions. Excess infrastructure
                                                                                              • Export Processing Zone (EPZ) Scheme
               MINIMUM                                                                        • Export Oriented Units (EOU) Scheme
                                            can be built with out tax benefits
                                                                                              • Software Technology Park (STP) Scheme
                                                                                              • Electronic Hardware Technology Park (EHTP) Scheme
UNITS FOR ACTIVITIES:        EXCLUSIVE FACILITIES              INFRASTRUCTURAL
                             FOR UNITS                         SEVICES                        • Export Promotion Capital Goods (EPCG) Scheme
•   Manufacturing goods      •   Canteens                      •   Free Trade                 • Advance Licensing and Deemed Exports Scheme
•   Rendering services       •   Public telephone booths       •   Warehousing Zones,
•   Trading or warehousing   •   First aid centres,            •   International Financial    • Free Trade Zone(FTZ) Scheme
    purposes                 •   Crèches                           Services Centre
STAGE             UNIT                               DEVELOPER / CO-DEVELOPER
                LITERATURE REVIEW : SEZ
                                                                    Development       No Customs Duty                    No Customs Duty
Minimum land area required for establishment of SEZ:                Stage:            No Excise Duty                     No Excise Duty
•   Land to be contiguous with no public thoroughfare.              (Capital Goods,   No Sales Tax                       No Sales Tax
•   Land to be vacant on the date of application.                   Consumables,      No Service Tax                     No Service Tax
•   Developer to have either freehold/ development / lease rights
                                                                    Components &      No Purchase Tax                    No Purchase Tax
•   For formal approval, land must be in the possession of the
    developer                                                       Spares)           No Stamp duty & Registration       No Stamp duty & Registration
                                                                                      Fees                               Fees
                                   GENERAL            SPECIAL                         No Stamp duty on Mortgages         No Stamp duty on Mortgages
        TYPE OF SEZ                SEZ AREA          SEZ AREA                         No Electricity duty                No Electricity duty
                                     (HEC)             (HECS)
Multi Product                        1000               200         Operation         No Customs Duty                    No Customs Duty
Multi Services                        100                50         Stage:            No Excise Duty                     No Excise Duty
                                                                    (Raw              No Sales Tax                       No Sales Tax
Port/Airport based                     100               50
                                                                    Materials,        No Service Tax                     No Service Tax
Sector Specific                        100               50         Consumables,      No Purchase Tax                    No Purchase Tax
Free Trade                                                          Components &      No Stamp duty & Registration       No Stamp duty & Registration
Warehousing Zone                       40                40         Spares)           Fees                               Fees
(FTWZ)                                                                                No Stamp duty on Mortgages         No Stamp duty on Mortgages
Electronics hardware                                                                  No Electricity duty                No Electricity duty
and                                                                 Profit Stage      Exemption from Income Tax          No Income Tax for 10 years
                                       10                10
software, including                                                                   100% for the first 5 yrs           No MAT
ITES                                                                                  50% for the next 5 yrs             No Dividend Distribution Tax
Biotech Non-                                                                          50% of profits ploughed back for
Conventional                           10                10                           the next 5 yrs
                                                                                      No Minimum Alternate Tax
Energy
Gems & Jewellery                       10                10                                                                    0 Tax benefits for SEZ entities:
 Located near natural aggregation                     LITERATURE REVIEW : MFPS
      COLLECTION CENTER            points will serve a number of
•   Aggregation                                                              MEGA FOOD PARK SCHEME (MFPS)
                                   collection centres lying in close
•   Transportation                 proximity
                                                                              Inclusive concept which is aimed at establishing
                                  Primary grading sorting may be
                                                                               direct linkages from the farm to processing and on
                                   done
                                                                               to the consumer markets
                                  Facilities for storage, sorting grading
 PRIMARY PROCESSING CENTER         cleaning etc.                              Efficient logistics facilities will connect the
• Sorting, Grading & storage      Transportation facilities like              collection centres to the primary processing
• Refrigeration vans               refrigerated vans, trucks etc .             centres, which in turn will be connected to a
                                  Storage facilities will include all         central processing centre.
                                   weather warehouses and cold
                                   storage                                   The scheme aims at facilitating the establishment of
                                                                             food processing industry backed by an efficient supply
                                                                             chain, which will include collection centres, primary
                                  Industrial park with a number of          processing centres and clod chain infrastructure.
 CENTRAL PROCESSING CENTER         processing units
•    Common technical             Common design factory sheds
     infrastructure               Common facilities such as                 •    30-35 food processing units with
•    Common facilities                 Water
•                                                                            •    Collective investment of about 250 crores
     Basic infrastructure &            Electricity
     utilities                         Effluent treatment                   •    Annual turnover of 400-500 crores
•    Standard design factories    Specialized facilities
                                                                             •    Generate employment for about 30000 people.
                                       Cold storage
                                       Ware housing
MEGA FOOD PARK SCHEME                  Logistics
LITERATURE REVIEW : LOGISTICS
                                                                        FLOW OF GOODS
                                                                       FLOW OF FINANCE
                                                                      FLOW OF INFORMATION




 • FARMER                                • VALUE ADDITION                     • DISTRIBUTION CENTRES   • RETAIL OUTLETS   • FINAL CONSUMER
 • SUPPLIER OF RAW                                                            • TRANS-SHIPMENT         • ONLINE
   MATERIALS                                                                    HUBS
0 Value chain in Logistics / Supply chain of Food Processing sector


       MANUFACTURER                                                                         TRANSHIPMENT                    CONSUMER




       •      LOADING                        •      ROAD                  •      CWC, SWC              •   UNLOADING
       •      STUFFING                       •      RAIL                  •      ICD, CFS              •   DE-STUFFING
       •      CLEARING                       •      AIR                   •      LOGISTICS PARK        •   CLEARING
                                             •      SEA
                                             •      PIPELINE
0 A typical supply chain in a Food Processing Logistics system
LITERATURE REVIEW : LOGISTICS
DOMESTIC SUPPLIERS                                                    DEPOT
                                                                                                                                    LOGISTICS
                                                                                         RETAILER

                                               DISTRIBUTION
                                                                      DEPOT
                                                  CENTRE
                                                                                                             TRANSPORTATION

 MANUFACTURING
                            FINAL              DISTRIBUTION
                                                                      DEPOT             CONSUMER
                                                                                                                                  WARE HOUSING
                          ASSEMBLY                CENTRE

                                                                                                         •   Road transport                          VALUE ADDITION
                                               DISTRIBUTION                                              •   Rail transport
                                                                      DEPOT
                                                  CENTRE                                                 •   Sea transport
  INTERNATIONAL                                                                                          •   Air transport
                                                                                          EXPORT                                               •     Packaging
     SUPPLIERS                                                                                           •   Pipeline transport
                                                                                                                                               •     Labeling & assembling
                                                                      DEPOT
                                                                                                                                               •     Express services
                                 LOGISTICS PARK
                                                                                                                                               •     Tracking & tracing
                                                        INLAND
                  DOMESTIC WARE     BONDED WARE
                                                       CONTAINER
                     HOUSE          HOUSE / FTWZ
                                                         DEPOT
                                                                                                                                     Semi rigid
                  OFFICE SPACE /              PACKAGING                                                       Rigid packaging                              Flexible packaging
                                                                                                                                     packaging
                    TRAINING                COLDSTORAGE

                     PARKING &            3RD PARTY LOGISTICS
                                                                                                               Bottle, metal         Carton box              Paper, plastic
                     BOARDING                  BANKING

                  TRUCK TERMINAL     RAILTERMINAL     PORT TERMINAL                                             Metal box           Plastic bottle           Film, alu. Foil

                                   AIRPORT TERMINAL                           0 A conceptual layout of         Wooden box                                     Cellophane
                                                                              a typical logistics hub
LITERATURE REVIEW : LOCATION THEORY
        THEORY                     MAJOR WORK                                                HIGHLIGHTS

                         Von Thunen (1826), Launhardt         Focuses on presenting a general normative model of finding an optimal
                         (1882), Weber (1909, 1929),          location; Cost reduction factors are main driving force; Mathematical
NEOCLASSICAL APPROACH
                         Palander (1935), McCann (1993),      models are adopted to explain the location of firms; Relocation is not
                         Smith (1981), Isard (1956)           necessary


                         Pred (1967), Simon (1955), Cyert     Settling for sub-optimal outcomes rather than maximum profits; Stresses
                         and March, (1963), Townroe (1972),   the importance of internal factors; Consider a limited number of choices;
BEHAVIOURAL APPROACH     Hayter (1997), Krumme (1969),        Search and evaluate alternatives in a highly sequential way; Relocation
                         Keeble (1976, 1978), Pellenbarg      costs are taken into account; Relies on questionnaires and detailed
                         (1985, Louw (1996), Ebels (1997)     empirical work


                         Martin (1999), Fukuyama (1995),      Economic processes in space are mainly shaped by society’s cultural
                         Cooke and Morgan (1998), Trigilia    institutions; Focus is on the interaction between firms instead of the
INSTITUTIONAL APPROACH
                         (1986), Putnam (1993), Becattini     behaviour of individual firms; Collective learning through formal &
                         (1990,2002) Amin (2000)              informal relationships between firms


                         Nelson and Winter (1982), Brons
                                                              Location and relocation applies concepts from Darwinian biology such as
                         and Pellenbarg (2003), Boschma
EVOLUTIONARY APPROACH                                         variation, selection and path dependence; Knowledge is primarily
                         and Frenken (2004), Boschma,
                                                              embodied within the routine of firms; Founded on routine behaviour
                         Frenken, Lambooy (2002)
LITERATURE REVIEW : LOCATION THEORY
                                                 Low cost Labour.
    CRITICAL FACTORS OF INDUSTRIAL LOCATION   
                                                 Pipeline facilities.
                                                  Existing consumer market.
                                                  Attitude of workers.
 TRANSPORTATION                              
                                                 Existingfacilities. market.
                                                  Airway producer
                                                  AccessibilityLabour.
                                                 Managerial of land.
                                                  Water supply, cost and quality.
 LABOUR                                         Highway consumer market.
                                                   Potential
                                              
                                                 Proximityfacilities.
                                                  Colleges and supplies. institutions.
                                                              to research
                                                  Skilled Labour. land.
                                                 Cost of industrial of of markets.
                                                  Anticipation of growth industrial waste.
                                                  Disposable facilities
 RAW MATERIALS                               
                                                 Wage offacilities.
                                                  Railroad
                                                  Shippingsnow raw materials.
                                                  Availability of to market areas.
                                                  Attitude of community residents.
                                                  Clarityrates.of fuels.investment laws.
                                              
                                                 Amount costs fall.
                                                  Building ordinances. park.
                                                  Developed industrial
                                                             corporate
                                                  Availability
                                                  Tax assessment basis.
 MARKETS                                     
                                                 Quality ofto component parts.
                                                  Nearness schools.
                                                  Trucking services.
                                                  MarketingLabour.
                                                  Unskilled services.
                                                 Relations with the west.
                                                 Zoningfor future expansion.
                                                  Percentcodes.
                                                  Space fuels.fall.
                                                  Cost of rainof storage rates.
                                                  Regulations competitivejoint ventures and mergers.
 INDUSTRIAL SITE                             
                                                  Favourable concerning position.
                                                  Religious facilities. taxfacilities for raw materials and
                                                  Industrial property
                                                  Availabilitytransportation.
                                                  Waterwaycountry.
                                                 History of
                                                  Unions.
                                              
                                                 Materialtrends.transfer
                                                   Income
                                                  Compensationelectric power.
                                                  Livingcorporatelaws. material.
                                                  Insurance rates. raw of earnings out of country.
 UTILITIES                                   
                                                 State conditions.
                                                  Library facilities.tax structure.
                                                  RegulationsofLabour.
                                                  Availability on
                                                  Standardandlevel
                                                  components. of of
                                                  Shipping cost
                                                  Educational living.
                                                             of
                                                  Stability of regime. Labour.
                                              
                                                  Population trends.
                                                  Recreational facilities. institutions.
 GOVERNMENT ATTITUDE                         
                                                 Protectionlaws.power. transportation.
                                                  Insurance against
                                                  Availability foreign
                                                                of lending
                                                  Locationhumidity. owned
                                                  Relativeopportunities.
                                                  Taxationoperations.
                                                  Market electricof Labour. companies.
                                                  Cost of of suppliers.
                                                  Tax freefinished goods
                                                 Consumer income.expropriation.
                                                  Per capita characteristics.
                                                  Dependability
                                                 Attitude of community leaders.
 TAX STRUCTURE                                  Treatiescost.of malelaws.
                                                  Locationandforeign currency.
                                                  Closeness to pacts.
                                                  Freightinspections. Labour.
                                                  Safety of of gas. services.
                                                  Foreign ownership industries.
                                                  Availability other
                                                                   postal
                                                  Monthly average temperature.
                                              
                                              
                                                 State sales competitors.
                                                  Availability of capital.
                                                  Availabilitytax.
                                                  Strengthfacilities.
                                                  Medical   of
 CLIMATE                                     
                                                 Attitude in the Unitedpollution laws.projects.
                                                                            Nations.
                                                   Future expansion opportunities.
                                                  Communityofand storage facilities.
                                                  Warehousing
                                                 Requirementsstreamfacilities.
                                                  Adequacyand female Labour.
                                                  Nuisance ofindustrial development
                                                  Air pollution.sewage
                                                  Availability on
                                                  Shopping centres.what percentage of employees may
                                                  Balance of payment status.
 COMMUNITY                                      Typeof market. alliances. markets.
                                                  Size of military
                                                  Proximity to international
                                              
                                              
                                              
                                                  Cost of living
                                                  be foreign. financing agents.
                                                  Nearnessof related
                                                  Attitude to
                                                  Hotels and motels. industries.
                                                  Coal and nuclear power generation facilities.
                                                 Attitude toward foreign capital.
                                                  Government aids.
 POLITICAL SITUATION OF FOREIGN COUNTRY
                                              
                                                 Banks and credit institutions.
                                                  Prevalence bureaucratic red tape.
 GLOBAL COMPETITION AND SURVIVAL                Community position of future expansion.
                                                 Regulations concerning price controls
 GOVERNMENT REGULATION
 ECONOMIC FACTORS
LITERATURE REVIEW : LOCATION THEORY                   MULTI-CRITERIA METHODS FOR LOCATION SELECTION:
Criteria that influence manufacturing plant location     1. STATIC AND DETERMINISTIC MODELS
planning:
 Proximity to Customers                                 Static and deterministic models have five basic purposes, which focus on:
 Business Climate                                          How to minimize the average distance travelled
 Total Costs
 Infrastructure                                            How to achieve maximum coverage
 Quality of Labour                                         How to determine a centre that can maximize coverage and minimize the
 Suppliers
 Other Facilities                                           distance travelled
 Free Trade Zones                                          How to deal with multiple objectives
 Political Risk
 Government Barriers                                       How to locate undesirable facility
 Environmental Regulation
 Host Community                                         2. DYNAMIC AND STOCHASTIC MODELS.
 Competitive Advantage                                  Dynamic and stochastic models are mainly dealing with planning for future
Criteria that influence warehouse location planning :    conditions under two core uncertainty situations
 Costs                                                        a) Planning with known model input parameters
       • Labour & handling costs
                                                                 b) Planning with imperfect information of input parameters.
       • Transportation cost,
       • Tax incentives & structure                         Formulating such real-world problems into either a single objective or multiple
       • Financial incentives                                objectives with an optimal or near-optimal solution & assume that future values
 Labour characteristics                                     of inputs are uncertain
 Infrastructure                                            Probabilistic approach focus explicitly on the probability distributions of random
 Market                                                     variables the scenario approach embraces models that help generate a set of
 Macro environment                                          possible future values for the variables
STRUCTURING OF FOOD PROCESSING SECTOR IN INDIA                         CASE STUDY : AGRI EXPORT ZONE

                                                                       AGRI EXPORT ZONE: For Passion Fruit in Manipur
     STATE OR ZONAL LEVEL NETWORK OF FOOD PROCESSING INDUSTRIES
                                                                        Convergence
      AGRI EXPORT ZONE                      PRODUCTION AREA             Partnership
                                                                        Focus
     FOOD PROCESSING SEZ                     TERMINAL MARKETS          • To take care of particular product/produces
                                                                         located in a contiguous area
      MEGA FOOD PARKS                       PRIMARY PROCESSING UNITS   • Developing and sourcing the raw materials for its
                                                                         processing, packaging and leading to final export
                                                                       Functions:
             LOGISTICS / MARKET LINKAGES / TRANSPORTATION
                                                                       • Provisions of inputs like seeds
                                                                          fertilizers, pesticides, credit to farmers
     CENTRAL PROCESSING UNIT                   COLD CHAIN STORAGE
                                                                       • The development of pre & post harvest storage
FOOD PROCESSING INDUSTRIES                  MULTI-MODAL TRANSPORT      • Marketing of the product to retailer or export

    FOOD PACKAGING INDUSTRIES               AIRPORT CARGO TERMINAL     Passion fruit production   7853 Ha; 63,606 Mt

    QUALITY CONTROL & FPO LAB                                                                     Europe, USA and Far
                                                                       Target markets
                                                                                                  Eastern countries
    RESEARCH & DEVELOPMENT
                                                                       Expected export volume     2000-3500 tonnes/year
    INFRASTRUCTURE FACILITIES:     •   FIREFIGHTING SERVICES                                     115.1 million INR from
                                                                       Incentives
•    POWER SUPPLY                   •   WAREHOUSES                                                MOFPI, NHB, APEDA
•    WATER SUPPLY                   •   COLD STORAGE
                                                                                                  Juice Extraction
•    WASTE MANAGEMENT               •   TRANSPORT TERMINAL
                                                                       Equipment                  Treatment
•    EFFLUENT TREATMENT             •   COMMON UTILITIES
                                                                                                  Cold Storage
CASE STUDY : FOOD PROCESSING SEZ
PEARL CITY FOOD PORT (SEZ)
Tuticorin, Tamil Nadu, India

Connectivity
• Tuticorin Port - 30 KM
• Tuticorin Town - 23 KM
• Tirunelveli Town - 27 KM
• Tuticorin Airport - 15 KM
• NH 7A - 5 KM
• NH7 - 25 KM
• Railhead at Tuticorin - 30 KM
• Railhead at Tirunelveli - 35 KM (Major junction)
• Madurai International Airport - 150 KM
• Trivandrum Airport - 150 KM

Advantages of connectivity:
• Strategically located near the East-West
   international sea route with access to many parts
   of the world
• Offers weekly container services to Europe, USA
   and Red Sea ports and a daily service to Colombo
• Already handles a substantial quantum of food
   imports and exports of raw food material.
CASE STUDY : FOOD PROCESSING SEZ
Raw materials from Tamil Nadu and Kerala:
• Fruits & Vegetables,
• Seafood
• Spices and allied products
• Poultry and livestock
• Gherkins, milk and oil seeds
Types of industries for Food Processing Zone       TOTAL AREA OF SEZ: 175 HECTARES
• Food & vegetable processing                      PROCESSING ZONE FACILITIES               NON-PROCESSING ZONE FACILITIES
• Spice based products                             • Plots for food processing industries   • Township security
• Gherkin processing                               • Warehousing & Distribution             • Conference centre
• Seafood - including crabs, prawns, lobsters      • Cold storage                           • Fitness facilities
• Coconut based products                           • Testing labs                           • Entertainment facilities
• Banana based products like pulp, powder          • Truck weigh station                    • Outpatient medical clinic
• Poultry and egg based products                   • Container terminal yards               • Dental clinic
• Biscuits and confectionery                       • Packaging centre                       • Pharmacy / drug store
• Ethnic products like papads, pickles             • Grain silo storage and tank farm       • Grocery store
• Health food and nutraceuticals                   • Orientation / training centre          • Retail centre
• Food enzymes, ingredients                        • Crèche                                 • Apartments / condos / single
• Canned products                                  • Shuttle transit station                • family detached housing
• Soup powders                                     • Bus transfer terminal                  • K-12 school
• Tea and coffee products                          • Trucker lounge                         • Tennis, golf and swimming
• Edible oil for exports                           • Visitor fuel stations                  • facilities
• Frozen ready-to-eat and ready-to-cook products   • Fire station                           • Banks
• Vermicelli, noodles, pasta                       • Cafeteria with a food court            • Restaurants
• Pet food                                         • Hospital                               • Multiplex
CASE STUDY : MEGA FOOD PARK SCHEME
JANGIPUR BENGAL MEGA FOOD PARK:
 Murshidabad, West Bengal, India
Zone of Influence: Consists of the following districts:
• Murshidabad, Nadia, Malda, Burdwan, Birbhum
• Close proximity to the rich agro based zones of
   Jharkhand & Bihar

Advantages of location:
• Availability of large quantities of process able agro
   produce
• Strategic locations in central West Bengal
• Substantial trade with this neighbouring country
• Has stable power supply and abundant water supply
• Easy availability of skilled and unskilled workforce

Available produce in the Zone of Influence:
• Type of Fruits:
   Mango, Banana, Pineapple, Litchi, Guava, Orange,
   Sapota, Papaya
• Type of Vegetables:
   Cauliflower, Cabbage, Tomato, Peas, Green
   Chilli, Okra, Ginger, Onion, Cucurbits
• Type of crops: Rice, Wheat, Potato
• Others: Milk
CASE STUDY : MEGA FOOD PARK SCHEME                     Collection Centres (CC) : 18 Nos.       Central Processing Centre (CPC)
                                                          Area : 0.35 acres each
Destination Market & Population Connectivity                                                      CPC Layout Area : 85.5 acres
                                                          CC Facilities:
Kolkata- 11.83 mn                    NH-34                                                        Common Facilities:
                                                          Work Sheds for receiving                Multi-purpose Cold
Siliguri- 4.8 mn                     NH-34
                                                          Weighing scale                          Storage, Warehouses, Pulping
Malda- 3.3 mn                        NH-34                Primary sorting                         Unit, Weigh Bridge & Truck
Burdwan-6.05 mn                      NH-34/ SH-7
                                                                                                  Terminal, Standard Design
Durgapur-0.49 mn                     NH-34 / SH / NH 2    Primary Processing Centre (PPC)         Factory, Building for small units, Factory
Description                               INR in Lakhs    PPC Layout Area : 1.2 acres             Sheds
Land of all sites & Site Development             876.10   PPC Facilities:                         Central Facilities Building:
Buildings                                       3608.35   • Loading & Unloading Area              Food Quality Control
Water Supply System                              997.72   • Weighing Scale                        Laboratory, Training Centre, Business
Drainage                                         665.30   • Sorting-Grading Area                  Centre, Bank Branch, Staff Canteen
                                                          • Washing/Cleaning Area                 Infrastructure provisions:
Truck Terminal                                    50.05
                                                          • Truck and Car Parking Area            • Fully serviced 29 plots - 47.75 acres
Roads & Culverts                                 399.81   • Cold Storage (50 MT each)             • Factory sheds: 4.5 acres
Electrical works                                 303.49   • Security Room                         • FPO / Quality control laboratory
PPCs & CCs Facilities                           1134.69   • Warehouse (270 MT)                    • Incubation facility
Plant & Equipments                              2755.14   • Other Utilities:                      • Modified atmosphere cold storage
Preoperative expenses                            313.54         •Administrative Office            • 132KV/ 11 KV sub-station
                                                                •Information Kiosk                • Water supply & purification
TOTAL                                     Rs.11,104.18
Means of Finance                 Amount (Rs. in Lakhs)          •Nursery                          • ETP/WWTP and STP
MOFPI Grant                                    5,000.00         •Planting Material & Seed Sales   • Composting yard
Equity                                         3,052.00         •Fertilizer Centre                • Road network
Debt @13%                                      3,052.18         •Training Hall
                                                                •Micro-Finance Centre
Total                                         11,104.18
CASE STUDY : INDUSTRIAL FOOD PARK
SUDHA RAS INDUSTRIAL FOOD PARK:
Jaldhulaguri, Haorah, West Bengal
Layout of proposed food park: 50.29 acres
Plots type         Plot Size in acres      Nos.
Large              3.0 - 5.0               3
Small to Medium 0.50-2.5 acres             26
Infrastructure provisions :
• 29 fully serviced plots for individual units
• H.T. Power supply and distribution system
• Road system
• Area and street lighting
• Potable water supply with treatment plant
• Drainage and sewerage disposal system
• Rain water harvesting system
• Truck terminal
        Item Description           INR in Lakhs
Land and Site Development          946.75
Buildings                          17.04
Water Supply System                93.75
Rain Water Harvesting              117.11
Canal Development                  3.43
Roads & Pavement                   288.27
Power Supply System                150.24
Pre Operative Expenses             40.02
TOTAL PROJECT COST                 1656.60
CASE STUDY : MMHL
MULTI-MODAL LOGISTICS HUB:
Pithampur-Dhar-Mhow Investment Region
Sub-region of Delhi-Mumbai industrial corridor (DMIC)

Functions:
• Provide facilities and services for
   collection, distribution, storage and transportation
   of goods meant for exports and imports
• Provide competitive cost and fast turnaround
   times
• Improve efficiency of operations in the region
• Improve strategic attractiveness as an investment
   destination

Infrastructure Development Strategy
• Prioritization of Rail Projects: Conversion of metre
    gauge to broad gauge & extensions at required
    palces.
• Entry from NH-3 to Proposed Site of MMLH
• Promotion of Railway Sidings
                                                          SITE DELINEATION CRITERIA:
                                                          • Indore SEZ: Western side of the site for MMLH is delineated by Indore SEZ
                                                          • NH-3 Bypass: Southern edge of the proposed site is delineated Bypass for NH-3
                                                          • Propose Indore-Dahod Rail Link: The northern edge of the proposed site for the
                                                              MMLH is delineated by the proposed railway line between Indore and Dahod.
b Following table shows the various components of the MMLH and the area required                 CASE STUDY : MMHL
            ACTIVITY/PROJECT COMPONENT                        AREA (IN HA)         Major support functions:
Railway Siding                                                     17.1            • Truck Terminal and Workshops
                                                                                   • Warehousing
Stacking Area                                                      29.3            • Processing
CFS facility                                                       23.0            • Packaging
                                                                                   • Trade and Commercial Functions
Hazardous Container                                                3.8             • Basic amenities, utilities and services
                                                                                   Major core activities performed :
Workshop/Repair                                                    8.3
                                                                                   • Receipt and dispatch / delivery of cargo.
Processing/Packaging                                               6.2             • Transit operations by rail/road
                                                                                   • Temporary storage of cargo and containers.
Warehouses                                                         10.5
                                                                                   • Customs clearance.
Terminal Facilities(for 1000 trucks)                               9.9             • Consolidation and desegregation of LCL cargo.
                                                                                   • Container handling and stacking.
Gate Complex and Administrative Facilities                         5.1             • Stuffing / De-stuffing of containers.
Commercial Complex                                                 4.4             • Maintenance and repair of container units.
                                                                                   Project cost
Expomart                                                           4.7
                                                                                   • The overall project cost for the MMLH was
Roads                                                              28.2               estimated as Rs 5,997 millions.
                                                                                   • Infrastructure cost for the Logistics Hub as a whole
Parking                                                            1.3
                                                                                      is approximately Rs. 1800 millions.
Green Buffer/Drain                                                 21.2            • The building components and related cost for the
                                                                                      site is Rs. 1,813 millions.
Utilities                                                          9.0
                                                                                   • Cost of the equipment is approximately Rs. 1713
Total                                                             182.0               millions including the replacement cost.
CASE STUDY : COMPARATIVE ANALYSIS
SPECIAL ECONOMICSCHEMES (MFPS)
 INDUSTRIAL FOOD PARKS (IFP)
 MEGA FOOD PARK ZONES (SEZ)
 AGRI EXPORT ZONES (AEZ)
                   SEZs are verysimilarIndustrial areas divided into Processing (Industrial they primarily house food processing industries and
                          IFP arehas a Central Processing Centre as the nuclei of allthat Infrastructure) & Nonfacilitated by Primary Processing
                          MFPS large to normal industrial parks with the exception value addition activities Processing (Social Infrastructure).
DESCRIPTION
DESCRIPTION
 DESCRIPTION              allied industries. areasare point dedicated Logistics Hubs for handlingInvestment & Infrastructureadevelopment. They
                          Centres, which will actdesignated for promotion of export depending to production potential of materials. The Central
                           These are large They as with of aggregation and primary Foreign on development authority. particular product.
                   They are developed phase wise designated areas which are administrated by aprovide ready to use rawThey area walled are
                          Processing withdelineated to a specific small area.
                           These are not planned an allotments and infrastructural number
                   classified on basis of thewill beplotindustrialthat are developed in provisions for industries.
                          enclosures facility types of industries park and will house a a SEZ. of processing units

                   SEZs are geographical regions that have economic lawsthat area. from a parks areagenerally applicablefacilitate land acquisition
                          They are an inclusivepromote these industries at establishing direct linkages mainly planned to processing laws, with the
                          MFPS is planned to concept which is aimed in different These country’s from the farm to economic and on to the
PURPOSE
 PURPOSE           underlying objectiveindustries increase in economicThey areand activity the basisincreased foreignprocess ablelogistics facilities
                          for setting markets, through providing them. growth centres and through Processing Centres. Efficient raw material &
                          consumer product & area specific whichof collection located on Primary of availability of to other lines of activity
                                       up being an and a network                                                          investment.
 PURPOSE                   They are                                    are developed mainly for sourcing of raw materials
 PURPOSE                  markets.
                          will connect the collection centres to the primary processing centres, which in turn will be connected to a central
STAKE HOLDERS              such as Packaging, Processing & eventually export.
                   Development authority, Units, Government, Developers, Financial Institutions
                          processing centre
STAKE HOLDERS             Development authority, Units, State Government, Central Government
                   SEZ provide following mandatory industrial & social infrastructural provisions:
STAKE HOLDERS             Development authority, Units, State Government, Central Government, Farmers
 STAKE HOLDERS            Farmers, State Government, Central Government, Exporters
                         Power & Electricity                                   Hotels
                          IFP provide following infrastructuralinfrastructural provisions:
                          MFPS provide following mandatory provisions (not mandatory):
                        Water purification & supply                           Hospitals
                                Power & Electricity
                          Terminal market, Sorting and grading centre, Warehouses to store produce
                                 Powermanagement
                                        & Electricity
  INFRASTRUCTURE        Solid waste                                           Residential
                          
                                Water purification & supply
                                 Water purification & supply
INFRASTRUCTURE          Waste water treatment                                 Educational Institutions
 INFRASTRUCTURE           
                                Solid waste management
                                 Solid waste management
 INFRASTRUCTURE         Effluent treatment                                    Shopping
                          Incentives are limited; Mostly incentives are for farmers in form of better seeds, equipment, finance, information.
                                Waste water treatment & Effluent treatment
                                 Waste water treatment & Effluent treatmentFinancial institutions
  INCENTIVES            Roads & Transport                                 
                          Exporter mayTransport financial incentives
                                Roads & Transport
                                 Roads & also enjoy
                   SEZ must have integrated Logistics Hub or any transportation facilities except parking facilities. The primary processing centres
                          IFP do not generally have integrated Logistics Hub or any transportationfacilities except parking facilities. The primary
                          IFP generally have integrated Logistics Hub or any transportation facilities except parking facilities.
                   will provide facilities for storage, sorting grading cleaning etc.
                          AssistanceUnits & Developers, Assistance to storage, sortingland acquisition for units developers except for for varying
                          processing to developers for land acquisition by government; No cleaning etc.
                                       centres will provide facilities for                grading
                   Tax benefits for limitations; Gathering / collection point for surroundingincentives &area orExemptions from taxes financial
                                                                           developers for
  AREA
 INCENTIVES                No area                                                              catchment finance,
INCENTIVES
 INCENTIVES               assistance from Units, Assistance to developers for land acquisition & finance
                                        for Government.
                          Tax benefits rates
                   periods at varying
 AREA
AREA OF UNITS
  NO.              Up to 50 - -300Hectares (depending on requirement)
                          150 100 Hectares (dependingtype, region & requirement)
                                                            on requirement)
                          1000 specific; Depending on catchment / production area
                           Not Hectares (depending on
 NO. OF UNITS             20 - - 150 units (depending on size)
                          100 50 units (depending on size)
BAGDOGRA                                                                                    SILIGURI
                    RLY. STATION                                                                                MUNICIPAL
                                                   PHASE 3                                                    AUTHORITY AREA

       RLY. CARGO                                            PHASE 2
        TERMINAL
      AIR CARGO                                                         SEZ: NON
      TERMINAL                                         PHASE 1
                                                                       PROCESSIN
                                                                         G AREA                                      NEW JALPAIGURI
        MMHL                            AREA FOR                                                                      RLY. STATION
                                        AIRPORT
                                       EXPANSION
           TRUCK
         TERMINAL
                                                    SEZ : PHASE 3              RANGAPANI
                                                   MULTI PRODUCT               RLY. STATION


                       SEZ : PHASE 1                                                          FULBARI TRUCK
   SEZ :             MEGA FOOD PARK                                                             TERMINAL
PROCESSING
   ZONE

                                      SEZ : PHASE 2
                                   ALLIED INDUSTRIES
1. COMPANY DETAILS                              2. PROCESSING DETAILS         4. INFRASTRUCTURE
Name of company                                 Technology / Process          Logistics                                      DATA COLLECTION QUESTIONNAIRE
Owner                                           Machinery Used                Carrier vehicles owned
Address                                         Crew /Manpower
                                                                              Cost of operation                        PRIMARY DATA COLLECTION:
Years of establishment                          Space requirement (m2)

Current status                                  No. of units                  Carrier vehicles contracted              1. Industrial Food Processing unit requirements
Employee strength
                                                Material input                Cost of operation                                « Material Requirements
                                                Quantity
Type of employees
                                                Output products
                                                                              Dedicated logistics area
                                                                                                                               « Energy Requirements
No of employees                                                               Storage
Area of Plant / Factory
                                                Quantity                                                                       « Processing Details
                                                Output rate                   Cost of operation
Daily avg. working hours
                                                Time taken per batch / kg.    Space requirement
                                                                                                                               « Space requirements
1.1 RAW MATERIAL PROCUREMENT DETAILS
                                                Power sources
                                                                              Electric sub station                             « Logistics requirements
                                                Name
Catchment area / Market                         Requirement (per batch/day)   Water supply reservoirs                          « Emission Details
Contractual Farms if any                        Water source
                                                                              4.1 OTHER UTILITES                       SECONDARY DATA COLLECTION:
Raw materials                                   Water requirement
Name                                            Other requirement
                                                                              Facility                                 1. Infrastructural provisions for Industrial Park
Classification / Grading                        2.1 PACKAGING DETAILS
                                                                              Administration Building                          « Types of Services
                                                                              Stay facilities
Amount                                          Packaged products                                                              « Capacity of Services
Price of acquisition                            Name of product               Central canteen
Seasonal variation                              Packaging raw material        Parking area
                                                                                                                               « Planning parameters
Shelf life (in hours)                           Preservation process
                                                                              Security block
                                                                                                                       2. Infrastructural provisions for SEZ
                                                Cost per batch / unit
Alternative market
                                                Machinery used                Medical centre                                   « Types of Services
Mode of transport

1.2 FINAL PRODUCT DISTRIBUTION DETAILS
                                                Crew /Manpower                Inland Container Depot                           « Capacity of Services
Area of marketing
                                                Output rate
                                                Time taken per batch / unit
                                                                              R & D laboratory                                 « Planning parameters
Sub-contracted from                             Space requirement (m2)
                                                                              Quality Control Lab
                                                                                                                       4. Data regarding agricultural & food processing
Direct export
Indirect export
                                                No. of units                  5. POLICY IMPLEMENTATION & REGULATIONS      infrastructure in West Bengal
                                                3. EMISSION DETAILS           Incentives availed on raw materials
Final Product
                                                Types
                                                                                                                               « Block wise data
                                                                              Incentives availed on machinery
Name
                                                Description / Quality
Classification   (Fruits, vegetables, others)
                                                                              Incentives availed on logistics

Amount
                                                Emission rate / Amount
                                                                              Incentives availed on land
                                                                                                                       EXPECTED SOURCES:
                                                Disposal technology
Price of sale
                                                Space requirement             Tax concessions availed                  WBIDC, APIIC, GIDC, FRITOLAY INDIA PVT LTD., DREAM
Seasonal variation
Shelf life
                                                Disposal area                 Export concessions availed               BAKE PVT LTD., WEST BENGAL STATE HORTICULTURE &
Alternative market
                                                Recycling practices           EIA implementation                       FOOD PROCESSING DEPARTMENT.
                                                End products of recycling
Mode of transport                                                             Corporate social responsibility
BIBLIOGRAPHY / REFERENCES
                          Annual Survey of Industry (ASI), MOFPI     Journal homepage: www.elsevier .com/          Food and Agriculture Organization,
                           and IMaCS analysis                          locate/eswa, Expert Systems with               Department of Agriculture and
                          www.nefoodpark.com/index.php,               Applications, Multi-criteria warehouse         Cooperation, Department of Agriculture
                           http://db.nedfi.com/content/north-          location selection using Choquet               and Horticulture, Gujarat
                           east-india                                  integral                                      Gujarat Agro Industries Corporation
                          CII study on Skill gaps in the Indian      Electricity consumption, electribty            Ltd., Agriculture and Cooperation
                           Logistics Sector, CMIE, Indo-Italian        intensity and industrial structure: G. A.      department, Government of Gujarat
                           Chamber of Commerce                         Hankinson and J. M. W. Rhys, 1983             Gujarat Agro Industries Corporation
                          Human Resource and Skill                    Butterworth & Co (Publishers) Ltd.             Ltd., Agriculture and Cooperation
                           Requirements in the Transportation,        Analysis of the Industrial Demand for          department, Government of Gujarat
                           Logistics, Warehousing and Packaging        Electricity Author(s): R. E. Baxter and R.    Department of Agriculture, Gujarat
                           Sector – A report National Skill            ReesReviewed work(s): The Economic            Department of Animal Husbandry,
                           Development Corporation                     Journal, Vol. 78, No. 310 (Jun., 1968),        Gujarat
                          Report of the APO Multi-Country Study       pp. 277-298                                   Fisheries department, Government of
                           Mission on Minimum-Packaging               A quantitative water resource planning         Gujarat
                           Technology for Processed Foods held in      and management model for an                   Food and Agriculture Organization,
                           Thailand, 10-15 September 2001 (SME-        industrial park level, Yong Geng Æ             Department of Agriculture and
                           OS1-01), Report on Indian packaging         Raymond Coˆte´ Æ Fujita Tsuyoshi,              Cooperation, Department of Agriculture
                           industry by Badrul Hassan, Director         Published: 13 April 2007 Springer-             and Horticulture, Gujarat
                           (Technical),National Cooperative            Verlag 2007                                   Gujarat Agro Industries Corporation
                           Development Corporation, New Delhi         Industrial waste management in                 Limited
                          CII 2009                                    Turkey: Current state of the field and        Industries Commisionerate, Govt. of
                          Multi Modal Logistics Parks: A Key          primary challenges Güray Salihoglu             Gujarat
                           Factor for Economic Development of a        Environmental Engineering                     http://investinmanipur.nic.in/agro_foo
                           Country, R. K. Vishwakarma                  Department, Faculty of Engineering &           d.htm
                          Cold chain management, Er. A. K.            Architecture, Uludag University, 16059        Department of Road Transport &
                           Senapati, Asst. Professor, Process          Bursa, Turkey Planning Industrial              Shipping (morth.nic.in),
                           Technology Dept. ACHF, NAU, Navsari         Waste Treatment Author(s): Hayse H.            www.destinationmadhyapradesh.com
                          Journal of Business & Public Affairs,       BlackSource: Journal (Water Pollution         Department of Road Transport &
                           Volume 1, Issue 2, 2007 Dimensions of       Control Federation), Vol. 41, No. 7 (Jul.,     Shipping (morth.nic.in),
          INTRODUCTION     Industrial Location Factors: Review and     1969), pp. 1277-1284                           www.destinationmadhyapradesh.com
                           Exploration                                Industrial Ecology: Concepts and              Development Plan for Pithampur-Dhar-

GO TO :   METHODOLOGY     Reprinted By Permission Of Harvard
                           Business Review. “The Plant Location
                                                                       Approaches Author(s): L. W. Jelinski, T.
                                                                       E. Graedel, R. A. Laudise, D. W. McCall,
                                                                                                                      Mhow Investment Region of Madhya
                                                                                                                      Pradesh sub-region of DMIC
                           Puzzle,” By A. D. Bartness, March–April     C. K. N. PatelSource: Proceedings of the      Annual Survey of Industry (ASI) MOFPI
          CASE STUDIES     1994. Copyright © 1994 By The               National Academy of Sciences of the            and IMaCS analysis
                           President And Fellows Of Harvard            United States of America,Vol. 89, No. 3
                           College; All Rights Reserved.               (Feb. 1, 1992)

M.TECH Project, Sem 3 presentation

  • 1.
    CONTENTS: DEVELOPMENT OF FOODPROCESSING SECTOR IN 1. INRODUCTION TO INDIAN FOOD PROCESSING NORTH BENGAL & PROVISION OF SCENARIO INFRASTRUCTURE FOR FOOD PROCESSING SEZ 2. GOVT. POLICIES & INITIATIVES FOR FOOD PROCESSING SECTOR Prepared by: 3. NORTH BENGAL : SITE & DEVELOPMENT POTENTIAL ANALYSIS SHUBHRANEEL AICH 4. NEED FOR PROJECT 10 ID 60 R15 5. AIM, OBJECTIVES, SCOPE & LIMITATIONS R.C.G.S.I.D.M 6. PROJECT METHODOLOGY 7. LITERATURE REVIEW 8. CASE STUDIES 9. DATA COLLECTION QUESTIONNAIRE 10. BIBLIOGRAPHY M.TECH PROJECT 2011-2012
  • 2.
    FACTORS IMPACTING FOODPROCESSING SECTOR INTRODUCTION TO FOOD PROCESSING SCENARIO IN INDIA Atta (1 Kg) Fruit Juice (1 L) Potato Chips (35 gms) Jam (500 gms) DEMAND CONDITIONS TOTAL ADDITION IN VALUE CHAIN : 60-75% 81.48 • Rapid urbanization • Rising per capita income 10-15% • More than 10% growth predicted 20-30% 10-15% INDUSTRY STRATEGY & STRUCTURE 59.478 20-25% • Industry is highly fragmented 9.75 • Very low FDI in food processing sector in 6 18.43 India 5.64 0.6 10.4 FACTOR CONDITIONS • Availability of natural resources Movement to stockist Transportation Processing cost Retailer's margin Freight / Octoroi Excise duty Packing material Farmer Sales tax Processor's margin Discount / Scheme Distributor's margin Mandi charges • However, the processing levels are low • High level of wastage RELATED AND SUPPORTING INDUSTRIES • Presence of various institutions • No significant evidence of coordination among the supporting bodies GOVERNMENT VALUE WHOLE FOOD FARM INPUTS TRADE & ADDITION / SALE RETAIL & • Tax holiday for new food processing /SUPPLIER DISTRIBUTION PROCESSING TRADE SERVICE units • Liberalized overall policy regime = = = FLOW OF VALUE CHAIN ON FOOD PROCESSING = = =
  • 3.
    STATUS FOOD PROCESSINGSECTOR IN INDIA MAJOR SEGMENTS IN FOOD PROCESSING F & V Processing 7000 9% 4% 3% Food Grain Milling Fruits & Vegetables Dairy Products Dairy Products 6000 34% Meat & Poultry 20% Poultry Products Fish Processing Meat Products 5000 4% Bread & Bakery Other Processed Foods 10% Alcoholic Beverages 16% CAGR Aerated water 4000 0 Above figure represents the major segments in the food industry & their share 35% in food processing sector STATE WISE SHARE OF FOOD PROCESSING 3000 Andhra Pradesh 16% 13% Gujarat Karnataka 2000 4% Madhya Pradesh 13% Maharashtra 12% Punjab 1000 5% Rajasthan Tamil Nadu 7% 7% Uttar Pradesh 0 3% West Bengal 6% 14% 2003 2004 2005 2006 2007 2008 2009 Others 0 Above figure represents the growth in food industry in terms of production value in INR Crores 0 Above figure represents state wise share in Food Processing Sector
  • 4.
    GOVERNMENT OF INDIASCHEMES / POLICIES FOR GOVT. POLICIES & INITIATIVES FOR FOOD PROCESSING SECTOR DEVELOPMENT OF FOOD PROCESSING INDUSTRY: Infrastructure: EXISTING SCHEME UNDER 10th PLAN PROPOSED SCHEME UNDER 11th PLAN  Mega Food Parks Scheme (MFPS) to provide Supply driven-not entrepreneur driven Demand driven infrastructure along the value chain from farm to market. Post marketed Pre marketed  Scheme for cold chain, value addition and Stand-alone (no backward and forward Strong backward and forward linkages- preservation infrastructure linkages) reliable and sustainable supply chain  Capital Investment Subsidy For Construction / No Project Development Agency Project Management Agency (PM) (to Expansion / Modernization Of Cold Storages / handhold from Storages of Horticulture Products. concept to commissioning) No financial closure Financial closure to be ensured by the  Scheme for Development/Strengthening of Project Management Agency Agricultural Marketing Infrastructure, Grading Targeting small & medium enterprises No restriction on the number of units- and Standardization. with a minimum of 20 units for a 30 acre restriction can be on the quantity of Policies related to Quality Control & Testing park material to be handled Activities confined to park alone Complementary activities can take place  Implementation of HACCP / ISO 22000, ISO outside the central park by creating the 14000 / GHP / GMP Quality/ Safety Management System required infrastructure in a well-defined Zone to be finalised after a feasibility  Setting up / up gradation of Food Testing study. Laboratories. Financial assistance 25% limited to Rs.4 Higher scale of assistance to meet 75% of Crore inadequate to create the the project cost with a ceiling of Rs. 50  Schemes for Quality Development appropriate infrastructure crore per park (90% in difficult areas).
  • 5.
    GOVT. POLICIES &INITIATIVES FOR FOOD PROCESSING SECTOR VISION 2015 PROBLEMS OF TAXATION IN FOOD PROCESSING INDUSTRY:  To realize the vast potential of Indian agriculture •Customs tariff of 25-40 % on supply of raw material for packaging material.  Increasing the size of the processed food sector •Value added tax rate on processed food is 12.5 % - highest in the world. so as to •Customs duty on import of machinery items by food processing industry is 20-25 %.  Enhance farmer’s income •Tax incidence on aseptic processing & filling equipment is about 40 %  Generate employment opportunities PROBLEMS OF FINANCE FOR FOOD PROCESSING SECTOR:  Provide to consumers at affordable price •Banks use similar risk models for food processing sector as for manufacturing sector  Contribute to overall national growth •High operational / transaction cost in companies. •Non availability of timely credit from organized sources; farmers rely on other sources. OBJECTIVES •Intermediary finance sources charge 4 times the interest rate as banks.  Raise the level of processing of perishables from FOREIGN DIRECT INVESTMENT POLICY: 6% to 20% •Automatic approval for foreign equity up to 100%.  Raise the level of value addition from 20% to •FDI up to 100% is permitted under the automatic route in the food infrastructure . 35% •FDI policy does not permit FDI into Retail sector except Single Brand Product Retailing.  Raise the level of share in global food trade from •No industrial license is required for almost all of the food & agro processing industries. 1.5% to 3% INITIATIVES TAKEN FOR EXPORT PROMOTION:  Processed foods market to increase to INR 13,500 billion •Free trade zones (FTZ) and export processing zones (EPZ) have been set up. •Units in EPZ / FTZ and 100% Export oriented units can retain 50% of foreign exchange.  Share of value added products to grow from 38% to 58% •50% production of EPZ / FTZ and 100% EOU units are saleable in domestic tariff area. •Profits from such exports are also exempt from Minimum Alternate Tax (MAT).
  • 6.
    b Following figuresrepresent the comparison of Fruit & Vegetable requirement vs. production showing the surplus NORTH BENGAL : DEVELOPMENT POTENTIAL ANALYSIS availability in state of West Bengal (‘000 TONS) VEGETABLE b Following map represents PRODUCE FRUIT & ANNUAL ‘000 HA. SYMBOL CROP the major Fruit & Vegetable AREA Vegetable Requirement (tonnes per annum) Present Vegetable Production (tonnes per annum) production areas in West Bengal with area & amount 1200000 of production 1000000 800000 Mango 67.76 405.95 600000 Pineapple 11.85 342.59 400000 200000 Banana 25.73 502.11 0 Papaya 8.48 245.67 Darjeeling Jalpaiguri Coochbehar Orange 3.50 33.05 Dinajpur (N) Dinajpur (S) Malda Murshidabad Nadia 24 Parganas(N) 24 Parganas(S) Howrah Hooghly Burdwan Birbhum Guava 9.00 133.78 Bankura Midnapore Purulia Jackfruit 10.42 143.47 Litchi 6.55 55.67 Fruit Requirement (tonnes per annum) Fruit Production (tonnes per annum) Coconut 30.56 4007.39 250000 Sapota 3.69 43.26 200000 Cashewnut 9.71 9.56 150000 100000 Tomato 47.63 748.60 50000 Cabbage 70.69 1830.45 0 Cauliflower 63.74 1649.37 Darjeeling Jalpaiguri Coochbehar Dinajpur (N) Radish 34.65 445.05 Dinajpur (S) Malda Murshidabad Nadia 24 Parganas(N) 24 Parganas(S) Howrah Hooghly Burdwan Birbhum Pea 24.58 114.52 Bankura Midnapore Purulia Brinjal 145.6 2661.60 Onion 16.02 173.14
  • 7.
    DEVELOPMENT POTENTIAL ANALYSIS STRENGHTS INDUSTRIAL POTENTIAL  Low Development / Potential for growth is  Land availability for industrial purposes CATCHMENT AREA FOR EXISTING PROCESSING FACILITIES high through SJDA FOOD PARKS : No. of Units: 13  Strategic location for international trade  Water supply through rivers & melted ice if Pineapple 231900 tn. (72%) Total Capacity: 720 Tn. Orange 33000 tn. (100%) with : Bangladesh, Bhutan, Nepal, South required. East Asia, China & Europe.  Accessibility : Roads - NH-31, N.H. 31- RURAL MARKETS/MANDIS: Siliguri Regulated market  Strategic location for promoting trade & A, NH-55, S.H. 12, 12A. Rail linkages by (Pineapple, Oranges) development of North East Indian States. Broad, Metre & Narrow gauge. Bagdogra  Low population density; hence no domestic airport near Siliguri AGRI EXPORT ZONE: overburdening of natural resources.  Surplus power availability through Flowers - Jalpaiguri, Siliguri  Ideal weather conditions for social substations. Thermal PowerStation AGRI EXPORT ZONE: development planned in vicinity. Pineapple - Jalpaiguri, Siliguri, Koch  3 soil types in a fertile river valley provide  Tax benefits for area of Siliguri Bihar, North Dinajpur good agricultural land. WEAKNESSES SUGGESTED INDUSTRIES EXISTING COLD STORAGE FACILITIES No. of Units: 10  Low development in terms of all  Export facilities for fresh fruits & Total Capacity:111631.8 Tn. infrastructural facilities vegetables, flowers, tea  No industrial raw material or industries  Food processing industries with export EXISTING COLD STORAGE FACILITIES  Lack of manual labor & technical manpower motives No. of Units: 25 Total Capacity:286524.4 Tn.  Presence of international borders may be a  Export / Import hub for trade with sensitive issue Bangladesh, Bhutan, Nepal, South East AGRI EXPORT ZONE:  Terrain & topography are not ideal for large Asia, China & Europe. Mango, Lychee - Malda scale developments.  Secondary industries like wood RURAL MARKETS/MANDIS:  Limited provisions for transport linkages like works, pharmaceuticals, contractual English Bazaar Malda rail, roads & air transport cultivation of cash crops. (Mango, Litchi)  Current political instability  Other small scale industries such as CATCHMENT AREA FOR sericulture, animal husbandry etc. FOOD PARKS : EXISTING PROCESSING FACILITIES Mango 99400 tn. (24%) No. of Units: 20 Litchi 10000 tn. (18%) Total Capacity: 1970 Tn.
  • 8.
    FOOD PROCESSING SECTOR NEED FOR PROJECT ( Economic benefits for regional development ) Employment generation for population during construction & operational phase High demand Development of allied industries like Logistics , Packaging , Pharmaceutical , Steel Infrastructural development for region in terms of Roads, Electricity, Water Social infrastructure development in terms of Hospitals, Housing, Schools Changing consumerism, high income Demand for processed, Increase in export / import of Processed Food products levels with increasing disposable and value - added income, lifestyle changes, brand products ESTIMATED GOVT. POLICIES & INCENTIVES consciousness, healthy living INVESTMENT Provisions for industrial schemes such as : Food Park, MFPS, AEZ, SEZ, MMLH etc. Tax rebates, Concessions, Subsidies for activities related to food processing REQUIRED BY Strengthening of Agricultural Marketing & Quality Control Infrastructure 2015: Development schemes for Logistics Infrastructure like Cold chain, Warehousing High returns in EUR 22.9 High Financial support for Farmers, Developers, Industrial units, Logistic units terms of quality BILLION investments Special provisions in 11th 5yr plan for food processing sector and brand loyalty building REGION OF NORTH BENGAL: (Darjeeling, Jalpaiguri, Koch Bihar, Uttar Growing corporate sector Dinajpur Dakshin Dinajpur, Maldah ) participation, improved infrastructure Surplus Fruit & Vegetable Production and supply chain, consolidation of agri - Area also rich in medicinal plants, tea production, flouriculture activities & spices marketing supply chain Strategic location for export to Nepal, Bangladesh, Bhutan & other markets FORWARD INTEGRATION: BACKWARD INTEGRATION Strategic location for import from China & South East Asia for Indian distribution  Selling in the Domestic  From farm to the Cold Store Potential for industrial development Market • Collection Points close to farms: Availability of Transportation & Logistics • Develop markets from • Farmer not required to go to Market existing levels • Transparency in prices FECILITATION OF REGIONAL SOCIAL INCENTIVES & • Reduce number of • Maintaining the Cold Chain Refrigerated LAND & ECONOMIC CONCESSIONS FOR middlemen logistics ACQUISITION & DEVELOPMENT FOOD PROCESSING  Selling in Foreign Markets  Developing Quality LEGAL PROCESS INDUSTRIES • Developing International • Better Varieties Standards • Post Harvest Management • Marketing on Competitive • Education/Extension Programs: Eco- FACTORS FOR INDUSTRIAL ZONE FOR FOOD PROCESSING Terms friendly, organic farming, tissue culture,
  • 9.
    ANALYSING THE POTENTIALOF DEVELOPING FOOD PROCESSING SECTOR AIM, OBJECTIVES, SCOPE & LIMITATIONS AREA APPRAISAL OF ANALYSIS OF DEMAND/ GOVT. POLICIES &  AIM: NORTH BENGAL EXPORT POTENTIAL INITIATIVES Development of Food Processing Sector in North Bengal region & CRITERIA FOR ANALYSIS CRITERIA FOR ANALYSIS CRITERIA FOR ANALYSIS Designing of infrastructural services of a Food Processing SEZ. • AVAILABILITY OF RAW • QUANTITATIVE ANALYSIS • SPECIAL AREA ALLOCATION  OBJECTIVES: MATERIALS OF PRODUCE • EXPORT & TAX INCENTIVES 1. Identification of catchment areas & providing • POTENTIAL OF AREA TO • MARKET IDENTIFICATION IN • INFRASTRUCTURE SCHEMES development strategies for terminal markets, primary SUPPORT INDUSTRIES INDIA/ABROAD • AGRICULTURAL SCHEMES processing centers, storage infrastructure, logistics & • EXISTING OR PROPOSED • IDENTIFICATION OF transport linkages INDUSTRIES REQUIRED FINISHED 2. Identification & delineation of site for SEZ, broad level • EXISTING INFRASRTUCTURE GOODS master planning of processing & non processing zones of the SEZ & relevant surrounding areas OBSERVATIONS: OBSERVATIONS: OBSERVATIONS: 3. Designing of Infrastructural services for SEZ Processing • AREA RICH IN FRUIT & • 2 FOOD PARKS, 1 SEZ,1 AEZ zones • LARGE MARKET FOR FLOWER PRODUCTION EXPORT OF RAW & PROPOSED  SCOPE OF WORK: • HAS ABUNDANCE & PROCESSED GOODS • PROPOSALS FOR MARKET 1. Physical planning & design of SEZ infrastructure for VARIERY FOR EXPORT & • DEMAND AREAS WITHIN LINKAGES & COLD Processing zone of the SEZ PROCESSING COUNTRY & ABROAD STORAGE CHAIN 2. Master planning & development guidelines for Non • LAND, POWER, WATER, HR • ENOUGH SURPLUS • EXPANDING CATCHMENT / processing zone. AVAILABLE MATERIAL TO SUSTAIN PRODUCTION AREAS 3. Development guidelines for location PPCs / Terminal • FEW EXISTING INDUSTRIES PROCESSING SECTOR markets & Logistic networks 4. Areas of North Bengal i.e. Districts – Darjeeling , Jalpaiguri RESULT: RESULT: RESULT: , Koch Bihar, North Dinajpur, South Dinajpur & Maldah AREA FEASIBLE FOR LARGE DEMAND OF GOVT. POLICIES FAVOUR THE have been considered under scope of planning DEVELOPMENT OF LARGE PROCESSED GOODS PROVIDE DEVELOPMENT IN THS  LIMITATIONS: PROCESSING INDUSTRY REQIRED MARKET SECTOR 1. Financial viability of the project has been assumed 2. Political disturbances, regional instability have not been NEED OF DEVELOPMENT OF LARGE SCALE INDUSTRIAL ZONE FOR FOOD accounted for in the project. PROCESSING SECTOR IN THE AREA OF NORTH BENGAL FOR REGIONAL ECONOMIC & 3. Environmental policies for forest, high altitude, hills have SOCIAL DEVELOPMENT not been considered.
  • 10.
    PROJECT METHODOLOGY STEPS FOR IMPLEMENTING INDUSTRIAL DEVELOPMENT OF THE FOOD FOOD PROCESSING ZONE 2 PROCESSING SEZ PROJECT BACKGROUND STUDY DEVELOPMENT GUIDELINES FOR PRIMARY IDENTIFICATION & ANALYSIS OF 1 PROCESSING CENTRES & LOGISTIC SYSTEM INDUSTRIAL DEVELOPMENT SITES WITHIN THE REGION IDENTIFICATION OF CATCHMENT AREAS BY USING ESTABLISH NEED FOR PROJECT G.I.S. MAPPING OF RELATIVE CONSTRAINTS / PHYSICAL DELINEATION OF SITE INTO FACTORS (BLOCK WISE) PROCESSING & NON-PROCESSING ZONES BLOCK POPULATION AIM, OBJECTIVES, SCOPE, LIMITATIONS BROAD ZONING AND PHASE PLANNING BLOCK AREA UNDER AGRICULTURE FOR BOTH ZONES WITH TRANSPOTATION LINKAGES INFRASTRUCTURE PREPARE PROJECT METHODOLOGY LOCATION OF P.P.C. FOR EACH BLOCK IN ALL PLOT ALLOTMENT AND DEMARKATION DISTRICTS BASED ON RELATIVE FACTORS USING FOR VARIOUS TYPES OF INDUSTRIAL G.I.S. USES LITERATURE REVIEW OF RELATED ISSUES AGRICULTURAL AREA PLANNING & DESIGNING OF VARIOUS INFRASTRUCTURAL SERVICES & LOCAL TERMINAL MARKETS FACILITIES CASE STUDIES RELATED TO PROJECT TRANSPOTATION LINKAGES INFRASTRUCTURE: DESIGN OF A TYPICAL PRIMARY PROCESSING CENTRE AND •POWER SUPPLY PRIMARY & SECONDARY DATA COLLECTION TERMINAL MARKET UNIT INCLUDING REQUIRED SERVICES •WATER SUPPLY •WASTE MANAGEMENT ANALYSE & PROPOSE DEVELOPMENT STRATEGY FOR THE •EFFLUENT TREATMENT PROJECT IMPLEMENTATION TRANSPORTATION LINKAGES BETWEEN P.P.C. & •FIREFIGHTING SERVICES INDUSTRIAL AREA & REQUIRED COLDCHAIN FACILITIES •WAREHOUSES •COLD STORAGE DESIGN OF A TYPICAL COLD CHAIN •TRANSPORT TERMINAL RESULTS & CONCLUSION FACILITY & PRIMARY PROCESSING •COMMON UTILITIES CENTRE
  • 11.
    LITERATURE REVIEW :SEZ SEZ ENTITIES SPECIAL ECONOMIC ZONE (SEZ) : SEZ DEVELOPER CO-DEVELOPER SEZ UNIT  Geographical region that has economic laws different from a country’s generally applicable economic laws. NON PROCESSING AREA PROCESSING AREA SOCIAL INFRASTUCTURE MANUFACTURING & SERVICES UNITS  Underlying objective being an increase in HOTELS economic growth and activity through increased INFRASTRUCTURE FOR UNITS HOSPITALS foreign investment. HOUSING SHOPPING Several other initiatives in past to boost exports in RESIDENTIAL India before formation of SEZs: 50 % SCHOOL Infrastructure only to the extent approved by Board of Approvals qualifies for the tax concessions & exemptions. Excess infrastructure • Export Processing Zone (EPZ) Scheme MINIMUM • Export Oriented Units (EOU) Scheme can be built with out tax benefits • Software Technology Park (STP) Scheme • Electronic Hardware Technology Park (EHTP) Scheme UNITS FOR ACTIVITIES: EXCLUSIVE FACILITIES INFRASTRUCTURAL FOR UNITS SEVICES • Export Promotion Capital Goods (EPCG) Scheme • Manufacturing goods • Canteens • Free Trade • Advance Licensing and Deemed Exports Scheme • Rendering services • Public telephone booths • Warehousing Zones, • Trading or warehousing • First aid centres, • International Financial • Free Trade Zone(FTZ) Scheme purposes • Crèches Services Centre
  • 12.
    STAGE UNIT DEVELOPER / CO-DEVELOPER LITERATURE REVIEW : SEZ Development No Customs Duty No Customs Duty Minimum land area required for establishment of SEZ: Stage: No Excise Duty No Excise Duty • Land to be contiguous with no public thoroughfare. (Capital Goods, No Sales Tax No Sales Tax • Land to be vacant on the date of application. Consumables, No Service Tax No Service Tax • Developer to have either freehold/ development / lease rights Components & No Purchase Tax No Purchase Tax • For formal approval, land must be in the possession of the developer Spares) No Stamp duty & Registration No Stamp duty & Registration Fees Fees GENERAL SPECIAL No Stamp duty on Mortgages No Stamp duty on Mortgages TYPE OF SEZ SEZ AREA SEZ AREA No Electricity duty No Electricity duty (HEC) (HECS) Multi Product 1000 200 Operation No Customs Duty No Customs Duty Multi Services 100 50 Stage: No Excise Duty No Excise Duty (Raw No Sales Tax No Sales Tax Port/Airport based 100 50 Materials, No Service Tax No Service Tax Sector Specific 100 50 Consumables, No Purchase Tax No Purchase Tax Free Trade Components & No Stamp duty & Registration No Stamp duty & Registration Warehousing Zone 40 40 Spares) Fees Fees (FTWZ) No Stamp duty on Mortgages No Stamp duty on Mortgages Electronics hardware No Electricity duty No Electricity duty and Profit Stage Exemption from Income Tax No Income Tax for 10 years 10 10 software, including 100% for the first 5 yrs No MAT ITES 50% for the next 5 yrs No Dividend Distribution Tax Biotech Non- 50% of profits ploughed back for Conventional 10 10 the next 5 yrs No Minimum Alternate Tax Energy Gems & Jewellery 10 10 0 Tax benefits for SEZ entities:
  • 13.
     Located nearnatural aggregation LITERATURE REVIEW : MFPS COLLECTION CENTER points will serve a number of • Aggregation MEGA FOOD PARK SCHEME (MFPS) collection centres lying in close • Transportation proximity  Inclusive concept which is aimed at establishing  Primary grading sorting may be direct linkages from the farm to processing and on done to the consumer markets  Facilities for storage, sorting grading PRIMARY PROCESSING CENTER cleaning etc.  Efficient logistics facilities will connect the • Sorting, Grading & storage  Transportation facilities like collection centres to the primary processing • Refrigeration vans refrigerated vans, trucks etc . centres, which in turn will be connected to a  Storage facilities will include all central processing centre. weather warehouses and cold storage The scheme aims at facilitating the establishment of food processing industry backed by an efficient supply chain, which will include collection centres, primary  Industrial park with a number of processing centres and clod chain infrastructure. CENTRAL PROCESSING CENTER processing units • Common technical  Common design factory sheds infrastructure  Common facilities such as • 30-35 food processing units with • Common facilities  Water • • Collective investment of about 250 crores Basic infrastructure &  Electricity utilities  Effluent treatment • Annual turnover of 400-500 crores • Standard design factories  Specialized facilities • Generate employment for about 30000 people.  Cold storage  Ware housing MEGA FOOD PARK SCHEME  Logistics
  • 14.
    LITERATURE REVIEW :LOGISTICS FLOW OF GOODS FLOW OF FINANCE FLOW OF INFORMATION • FARMER • VALUE ADDITION • DISTRIBUTION CENTRES • RETAIL OUTLETS • FINAL CONSUMER • SUPPLIER OF RAW • TRANS-SHIPMENT • ONLINE MATERIALS HUBS 0 Value chain in Logistics / Supply chain of Food Processing sector MANUFACTURER TRANSHIPMENT CONSUMER • LOADING • ROAD • CWC, SWC • UNLOADING • STUFFING • RAIL • ICD, CFS • DE-STUFFING • CLEARING • AIR • LOGISTICS PARK • CLEARING • SEA • PIPELINE 0 A typical supply chain in a Food Processing Logistics system
  • 15.
    LITERATURE REVIEW :LOGISTICS DOMESTIC SUPPLIERS DEPOT LOGISTICS RETAILER DISTRIBUTION DEPOT CENTRE TRANSPORTATION MANUFACTURING FINAL DISTRIBUTION DEPOT CONSUMER WARE HOUSING ASSEMBLY CENTRE • Road transport VALUE ADDITION DISTRIBUTION • Rail transport DEPOT CENTRE • Sea transport INTERNATIONAL • Air transport EXPORT • Packaging SUPPLIERS • Pipeline transport • Labeling & assembling DEPOT • Express services LOGISTICS PARK • Tracking & tracing INLAND DOMESTIC WARE BONDED WARE CONTAINER HOUSE HOUSE / FTWZ DEPOT Semi rigid OFFICE SPACE / PACKAGING Rigid packaging Flexible packaging packaging TRAINING COLDSTORAGE PARKING & 3RD PARTY LOGISTICS Bottle, metal Carton box Paper, plastic BOARDING BANKING TRUCK TERMINAL RAILTERMINAL PORT TERMINAL Metal box Plastic bottle Film, alu. Foil AIRPORT TERMINAL 0 A conceptual layout of Wooden box Cellophane a typical logistics hub
  • 16.
    LITERATURE REVIEW :LOCATION THEORY THEORY MAJOR WORK HIGHLIGHTS Von Thunen (1826), Launhardt Focuses on presenting a general normative model of finding an optimal (1882), Weber (1909, 1929), location; Cost reduction factors are main driving force; Mathematical NEOCLASSICAL APPROACH Palander (1935), McCann (1993), models are adopted to explain the location of firms; Relocation is not Smith (1981), Isard (1956) necessary Pred (1967), Simon (1955), Cyert Settling for sub-optimal outcomes rather than maximum profits; Stresses and March, (1963), Townroe (1972), the importance of internal factors; Consider a limited number of choices; BEHAVIOURAL APPROACH Hayter (1997), Krumme (1969), Search and evaluate alternatives in a highly sequential way; Relocation Keeble (1976, 1978), Pellenbarg costs are taken into account; Relies on questionnaires and detailed (1985, Louw (1996), Ebels (1997) empirical work Martin (1999), Fukuyama (1995), Economic processes in space are mainly shaped by society’s cultural Cooke and Morgan (1998), Trigilia institutions; Focus is on the interaction between firms instead of the INSTITUTIONAL APPROACH (1986), Putnam (1993), Becattini behaviour of individual firms; Collective learning through formal & (1990,2002) Amin (2000) informal relationships between firms Nelson and Winter (1982), Brons Location and relocation applies concepts from Darwinian biology such as and Pellenbarg (2003), Boschma EVOLUTIONARY APPROACH variation, selection and path dependence; Knowledge is primarily and Frenken (2004), Boschma, embodied within the routine of firms; Founded on routine behaviour Frenken, Lambooy (2002)
  • 17.
    LITERATURE REVIEW :LOCATION THEORY  Low cost Labour. CRITICAL FACTORS OF INDUSTRIAL LOCATION   Pipeline facilities. Existing consumer market. Attitude of workers.  TRANSPORTATION   Existingfacilities. market. Airway producer AccessibilityLabour.  Managerial of land. Water supply, cost and quality.  LABOUR  Highway consumer market. Potential   Proximityfacilities. Colleges and supplies. institutions. to research Skilled Labour. land.  Cost of industrial of of markets. Anticipation of growth industrial waste. Disposable facilities  RAW MATERIALS   Wage offacilities. Railroad Shippingsnow raw materials. Availability of to market areas. Attitude of community residents. Clarityrates.of fuels.investment laws.   Amount costs fall. Building ordinances. park. Developed industrial corporate Availability Tax assessment basis.  MARKETS   Quality ofto component parts. Nearness schools. Trucking services. MarketingLabour. Unskilled services.  Relations with the west.  Zoningfor future expansion. Percentcodes. Space fuels.fall. Cost of rainof storage rates. Regulations competitivejoint ventures and mergers.  INDUSTRIAL SITE   Favourable concerning position. Religious facilities. taxfacilities for raw materials and Industrial property Availabilitytransportation. Waterwaycountry.  History of Unions.   Materialtrends.transfer Income Compensationelectric power. Livingcorporatelaws. material. Insurance rates. raw of earnings out of country.  UTILITIES   State conditions. Library facilities.tax structure. RegulationsofLabour. Availability on Standardandlevel components. of of Shipping cost Educational living. of Stability of regime. Labour.   Population trends. Recreational facilities. institutions.  GOVERNMENT ATTITUDE   Protectionlaws.power. transportation. Insurance against Availability foreign of lending Locationhumidity. owned Relativeopportunities. Taxationoperations. Market electricof Labour. companies. Cost of of suppliers. Tax freefinished goods  Consumer income.expropriation. Per capita characteristics. Dependability  Attitude of community leaders.  TAX STRUCTURE  Treatiescost.of malelaws. Locationandforeign currency. Closeness to pacts. Freightinspections. Labour. Safety of of gas. services. Foreign ownership industries. Availability other postal Monthly average temperature.    State sales competitors. Availability of capital. Availabilitytax. Strengthfacilities. Medical of  CLIMATE   Attitude in the Unitedpollution laws.projects. Nations. Future expansion opportunities. Communityofand storage facilities. Warehousing  Requirementsstreamfacilities. Adequacyand female Labour. Nuisance ofindustrial development Air pollution.sewage Availability on Shopping centres.what percentage of employees may Balance of payment status.  COMMUNITY  Typeof market. alliances. markets. Size of military Proximity to international    Cost of living be foreign. financing agents. Nearnessof related Attitude to Hotels and motels. industries. Coal and nuclear power generation facilities.  Attitude toward foreign capital. Government aids.  POLITICAL SITUATION OF FOREIGN COUNTRY   Banks and credit institutions. Prevalence bureaucratic red tape.  GLOBAL COMPETITION AND SURVIVAL  Community position of future expansion.  Regulations concerning price controls  GOVERNMENT REGULATION  ECONOMIC FACTORS
  • 18.
    LITERATURE REVIEW :LOCATION THEORY MULTI-CRITERIA METHODS FOR LOCATION SELECTION: Criteria that influence manufacturing plant location 1. STATIC AND DETERMINISTIC MODELS planning:  Proximity to Customers Static and deterministic models have five basic purposes, which focus on:  Business Climate  How to minimize the average distance travelled  Total Costs  Infrastructure  How to achieve maximum coverage  Quality of Labour  How to determine a centre that can maximize coverage and minimize the  Suppliers  Other Facilities distance travelled  Free Trade Zones  How to deal with multiple objectives  Political Risk  Government Barriers  How to locate undesirable facility  Environmental Regulation  Host Community 2. DYNAMIC AND STOCHASTIC MODELS.  Competitive Advantage Dynamic and stochastic models are mainly dealing with planning for future Criteria that influence warehouse location planning : conditions under two core uncertainty situations  Costs a) Planning with known model input parameters • Labour & handling costs b) Planning with imperfect information of input parameters. • Transportation cost, • Tax incentives & structure  Formulating such real-world problems into either a single objective or multiple • Financial incentives objectives with an optimal or near-optimal solution & assume that future values  Labour characteristics of inputs are uncertain  Infrastructure  Probabilistic approach focus explicitly on the probability distributions of random  Market variables the scenario approach embraces models that help generate a set of  Macro environment possible future values for the variables
  • 19.
    STRUCTURING OF FOODPROCESSING SECTOR IN INDIA CASE STUDY : AGRI EXPORT ZONE AGRI EXPORT ZONE: For Passion Fruit in Manipur STATE OR ZONAL LEVEL NETWORK OF FOOD PROCESSING INDUSTRIES  Convergence AGRI EXPORT ZONE PRODUCTION AREA  Partnership  Focus FOOD PROCESSING SEZ TERMINAL MARKETS • To take care of particular product/produces located in a contiguous area MEGA FOOD PARKS PRIMARY PROCESSING UNITS • Developing and sourcing the raw materials for its processing, packaging and leading to final export Functions: LOGISTICS / MARKET LINKAGES / TRANSPORTATION • Provisions of inputs like seeds fertilizers, pesticides, credit to farmers CENTRAL PROCESSING UNIT COLD CHAIN STORAGE • The development of pre & post harvest storage FOOD PROCESSING INDUSTRIES MULTI-MODAL TRANSPORT • Marketing of the product to retailer or export FOOD PACKAGING INDUSTRIES AIRPORT CARGO TERMINAL Passion fruit production 7853 Ha; 63,606 Mt QUALITY CONTROL & FPO LAB Europe, USA and Far Target markets Eastern countries RESEARCH & DEVELOPMENT Expected export volume 2000-3500 tonnes/year  INFRASTRUCTURE FACILITIES: • FIREFIGHTING SERVICES 115.1 million INR from Incentives • POWER SUPPLY • WAREHOUSES MOFPI, NHB, APEDA • WATER SUPPLY • COLD STORAGE Juice Extraction • WASTE MANAGEMENT • TRANSPORT TERMINAL Equipment Treatment • EFFLUENT TREATMENT • COMMON UTILITIES Cold Storage
  • 20.
    CASE STUDY :FOOD PROCESSING SEZ PEARL CITY FOOD PORT (SEZ) Tuticorin, Tamil Nadu, India Connectivity • Tuticorin Port - 30 KM • Tuticorin Town - 23 KM • Tirunelveli Town - 27 KM • Tuticorin Airport - 15 KM • NH 7A - 5 KM • NH7 - 25 KM • Railhead at Tuticorin - 30 KM • Railhead at Tirunelveli - 35 KM (Major junction) • Madurai International Airport - 150 KM • Trivandrum Airport - 150 KM Advantages of connectivity: • Strategically located near the East-West international sea route with access to many parts of the world • Offers weekly container services to Europe, USA and Red Sea ports and a daily service to Colombo • Already handles a substantial quantum of food imports and exports of raw food material.
  • 21.
    CASE STUDY :FOOD PROCESSING SEZ Raw materials from Tamil Nadu and Kerala: • Fruits & Vegetables, • Seafood • Spices and allied products • Poultry and livestock • Gherkins, milk and oil seeds Types of industries for Food Processing Zone TOTAL AREA OF SEZ: 175 HECTARES • Food & vegetable processing PROCESSING ZONE FACILITIES NON-PROCESSING ZONE FACILITIES • Spice based products • Plots for food processing industries • Township security • Gherkin processing • Warehousing & Distribution • Conference centre • Seafood - including crabs, prawns, lobsters • Cold storage • Fitness facilities • Coconut based products • Testing labs • Entertainment facilities • Banana based products like pulp, powder • Truck weigh station • Outpatient medical clinic • Poultry and egg based products • Container terminal yards • Dental clinic • Biscuits and confectionery • Packaging centre • Pharmacy / drug store • Ethnic products like papads, pickles • Grain silo storage and tank farm • Grocery store • Health food and nutraceuticals • Orientation / training centre • Retail centre • Food enzymes, ingredients • Crèche • Apartments / condos / single • Canned products • Shuttle transit station • family detached housing • Soup powders • Bus transfer terminal • K-12 school • Tea and coffee products • Trucker lounge • Tennis, golf and swimming • Edible oil for exports • Visitor fuel stations • facilities • Frozen ready-to-eat and ready-to-cook products • Fire station • Banks • Vermicelli, noodles, pasta • Cafeteria with a food court • Restaurants • Pet food • Hospital • Multiplex
  • 22.
    CASE STUDY :MEGA FOOD PARK SCHEME JANGIPUR BENGAL MEGA FOOD PARK: Murshidabad, West Bengal, India Zone of Influence: Consists of the following districts: • Murshidabad, Nadia, Malda, Burdwan, Birbhum • Close proximity to the rich agro based zones of Jharkhand & Bihar Advantages of location: • Availability of large quantities of process able agro produce • Strategic locations in central West Bengal • Substantial trade with this neighbouring country • Has stable power supply and abundant water supply • Easy availability of skilled and unskilled workforce Available produce in the Zone of Influence: • Type of Fruits: Mango, Banana, Pineapple, Litchi, Guava, Orange, Sapota, Papaya • Type of Vegetables: Cauliflower, Cabbage, Tomato, Peas, Green Chilli, Okra, Ginger, Onion, Cucurbits • Type of crops: Rice, Wheat, Potato • Others: Milk
  • 23.
    CASE STUDY :MEGA FOOD PARK SCHEME Collection Centres (CC) : 18 Nos. Central Processing Centre (CPC) Area : 0.35 acres each Destination Market & Population Connectivity CPC Layout Area : 85.5 acres CC Facilities: Kolkata- 11.83 mn NH-34 Common Facilities: Work Sheds for receiving Multi-purpose Cold Siliguri- 4.8 mn NH-34 Weighing scale Storage, Warehouses, Pulping Malda- 3.3 mn NH-34 Primary sorting Unit, Weigh Bridge & Truck Burdwan-6.05 mn NH-34/ SH-7 Terminal, Standard Design Durgapur-0.49 mn NH-34 / SH / NH 2 Primary Processing Centre (PPC) Factory, Building for small units, Factory Description INR in Lakhs PPC Layout Area : 1.2 acres Sheds Land of all sites & Site Development 876.10 PPC Facilities: Central Facilities Building: Buildings 3608.35 • Loading & Unloading Area Food Quality Control Water Supply System 997.72 • Weighing Scale Laboratory, Training Centre, Business Drainage 665.30 • Sorting-Grading Area Centre, Bank Branch, Staff Canteen • Washing/Cleaning Area Infrastructure provisions: Truck Terminal 50.05 • Truck and Car Parking Area • Fully serviced 29 plots - 47.75 acres Roads & Culverts 399.81 • Cold Storage (50 MT each) • Factory sheds: 4.5 acres Electrical works 303.49 • Security Room • FPO / Quality control laboratory PPCs & CCs Facilities 1134.69 • Warehouse (270 MT) • Incubation facility Plant & Equipments 2755.14 • Other Utilities: • Modified atmosphere cold storage Preoperative expenses 313.54 •Administrative Office • 132KV/ 11 KV sub-station •Information Kiosk • Water supply & purification TOTAL Rs.11,104.18 Means of Finance Amount (Rs. in Lakhs) •Nursery • ETP/WWTP and STP MOFPI Grant 5,000.00 •Planting Material & Seed Sales • Composting yard Equity 3,052.00 •Fertilizer Centre • Road network Debt @13% 3,052.18 •Training Hall •Micro-Finance Centre Total 11,104.18
  • 24.
    CASE STUDY :INDUSTRIAL FOOD PARK SUDHA RAS INDUSTRIAL FOOD PARK: Jaldhulaguri, Haorah, West Bengal Layout of proposed food park: 50.29 acres Plots type Plot Size in acres Nos. Large 3.0 - 5.0 3 Small to Medium 0.50-2.5 acres 26 Infrastructure provisions : • 29 fully serviced plots for individual units • H.T. Power supply and distribution system • Road system • Area and street lighting • Potable water supply with treatment plant • Drainage and sewerage disposal system • Rain water harvesting system • Truck terminal Item Description INR in Lakhs Land and Site Development 946.75 Buildings 17.04 Water Supply System 93.75 Rain Water Harvesting 117.11 Canal Development 3.43 Roads & Pavement 288.27 Power Supply System 150.24 Pre Operative Expenses 40.02 TOTAL PROJECT COST 1656.60
  • 25.
    CASE STUDY :MMHL MULTI-MODAL LOGISTICS HUB: Pithampur-Dhar-Mhow Investment Region Sub-region of Delhi-Mumbai industrial corridor (DMIC) Functions: • Provide facilities and services for collection, distribution, storage and transportation of goods meant for exports and imports • Provide competitive cost and fast turnaround times • Improve efficiency of operations in the region • Improve strategic attractiveness as an investment destination Infrastructure Development Strategy • Prioritization of Rail Projects: Conversion of metre gauge to broad gauge & extensions at required palces. • Entry from NH-3 to Proposed Site of MMLH • Promotion of Railway Sidings SITE DELINEATION CRITERIA: • Indore SEZ: Western side of the site for MMLH is delineated by Indore SEZ • NH-3 Bypass: Southern edge of the proposed site is delineated Bypass for NH-3 • Propose Indore-Dahod Rail Link: The northern edge of the proposed site for the MMLH is delineated by the proposed railway line between Indore and Dahod.
  • 26.
    b Following tableshows the various components of the MMLH and the area required CASE STUDY : MMHL ACTIVITY/PROJECT COMPONENT AREA (IN HA) Major support functions: Railway Siding 17.1 • Truck Terminal and Workshops • Warehousing Stacking Area 29.3 • Processing CFS facility 23.0 • Packaging • Trade and Commercial Functions Hazardous Container 3.8 • Basic amenities, utilities and services Major core activities performed : Workshop/Repair 8.3 • Receipt and dispatch / delivery of cargo. Processing/Packaging 6.2 • Transit operations by rail/road • Temporary storage of cargo and containers. Warehouses 10.5 • Customs clearance. Terminal Facilities(for 1000 trucks) 9.9 • Consolidation and desegregation of LCL cargo. • Container handling and stacking. Gate Complex and Administrative Facilities 5.1 • Stuffing / De-stuffing of containers. Commercial Complex 4.4 • Maintenance and repair of container units. Project cost Expomart 4.7 • The overall project cost for the MMLH was Roads 28.2 estimated as Rs 5,997 millions. • Infrastructure cost for the Logistics Hub as a whole Parking 1.3 is approximately Rs. 1800 millions. Green Buffer/Drain 21.2 • The building components and related cost for the site is Rs. 1,813 millions. Utilities 9.0 • Cost of the equipment is approximately Rs. 1713 Total 182.0 millions including the replacement cost.
  • 27.
    CASE STUDY :COMPARATIVE ANALYSIS SPECIAL ECONOMICSCHEMES (MFPS) INDUSTRIAL FOOD PARKS (IFP) MEGA FOOD PARK ZONES (SEZ) AGRI EXPORT ZONES (AEZ) SEZs are verysimilarIndustrial areas divided into Processing (Industrial they primarily house food processing industries and IFP arehas a Central Processing Centre as the nuclei of allthat Infrastructure) & Nonfacilitated by Primary Processing MFPS large to normal industrial parks with the exception value addition activities Processing (Social Infrastructure). DESCRIPTION DESCRIPTION DESCRIPTION allied industries. areasare point dedicated Logistics Hubs for handlingInvestment & Infrastructureadevelopment. They Centres, which will actdesignated for promotion of export depending to production potential of materials. The Central These are large They as with of aggregation and primary Foreign on development authority. particular product. They are developed phase wise designated areas which are administrated by aprovide ready to use rawThey area walled are Processing withdelineated to a specific small area. These are not planned an allotments and infrastructural number classified on basis of thewill beplotindustrialthat are developed in provisions for industries. enclosures facility types of industries park and will house a a SEZ. of processing units SEZs are geographical regions that have economic lawsthat area. from a parks areagenerally applicablefacilitate land acquisition They are an inclusivepromote these industries at establishing direct linkages mainly planned to processing laws, with the MFPS is planned to concept which is aimed in different These country’s from the farm to economic and on to the PURPOSE PURPOSE underlying objectiveindustries increase in economicThey areand activity the basisincreased foreignprocess ablelogistics facilities for setting markets, through providing them. growth centres and through Processing Centres. Efficient raw material & consumer product & area specific whichof collection located on Primary of availability of to other lines of activity up being an and a network investment. PURPOSE They are are developed mainly for sourcing of raw materials PURPOSE markets. will connect the collection centres to the primary processing centres, which in turn will be connected to a central STAKE HOLDERS such as Packaging, Processing & eventually export. Development authority, Units, Government, Developers, Financial Institutions processing centre STAKE HOLDERS Development authority, Units, State Government, Central Government SEZ provide following mandatory industrial & social infrastructural provisions: STAKE HOLDERS Development authority, Units, State Government, Central Government, Farmers STAKE HOLDERS  Farmers, State Government, Central Government, Exporters Power & Electricity  Hotels IFP provide following infrastructuralinfrastructural provisions: MFPS provide following mandatory provisions (not mandatory):  Water purification & supply  Hospitals  Power & Electricity Terminal market, Sorting and grading centre, Warehouses to store produce Powermanagement & Electricity INFRASTRUCTURE  Solid waste  Residential   Water purification & supply Water purification & supply INFRASTRUCTURE  Waste water treatment  Educational Institutions INFRASTRUCTURE   Solid waste management Solid waste management INFRASTRUCTURE  Effluent treatment  Shopping Incentives are limited; Mostly incentives are for farmers in form of better seeds, equipment, finance, information.  Waste water treatment & Effluent treatment Waste water treatment & Effluent treatmentFinancial institutions INCENTIVES  Roads & Transport  Exporter mayTransport financial incentives  Roads & Transport Roads & also enjoy SEZ must have integrated Logistics Hub or any transportation facilities except parking facilities. The primary processing centres IFP do not generally have integrated Logistics Hub or any transportationfacilities except parking facilities. The primary IFP generally have integrated Logistics Hub or any transportation facilities except parking facilities. will provide facilities for storage, sorting grading cleaning etc. AssistanceUnits & Developers, Assistance to storage, sortingland acquisition for units developers except for for varying processing to developers for land acquisition by government; No cleaning etc. centres will provide facilities for grading Tax benefits for limitations; Gathering / collection point for surroundingincentives &area orExemptions from taxes financial developers for AREA INCENTIVES No area catchment finance, INCENTIVES INCENTIVES assistance from Units, Assistance to developers for land acquisition & finance for Government. Tax benefits rates periods at varying AREA AREA OF UNITS NO. Up to 50 - -300Hectares (depending on requirement) 150 100 Hectares (dependingtype, region & requirement) on requirement) 1000 specific; Depending on catchment / production area Not Hectares (depending on NO. OF UNITS 20 - - 150 units (depending on size) 100 50 units (depending on size)
  • 28.
    BAGDOGRA SILIGURI RLY. STATION MUNICIPAL PHASE 3 AUTHORITY AREA RLY. CARGO PHASE 2 TERMINAL AIR CARGO SEZ: NON TERMINAL PHASE 1 PROCESSIN G AREA NEW JALPAIGURI MMHL AREA FOR RLY. STATION AIRPORT EXPANSION TRUCK TERMINAL SEZ : PHASE 3 RANGAPANI MULTI PRODUCT RLY. STATION SEZ : PHASE 1 FULBARI TRUCK SEZ : MEGA FOOD PARK TERMINAL PROCESSING ZONE SEZ : PHASE 2 ALLIED INDUSTRIES
  • 29.
    1. COMPANY DETAILS 2. PROCESSING DETAILS 4. INFRASTRUCTURE Name of company Technology / Process Logistics DATA COLLECTION QUESTIONNAIRE Owner Machinery Used Carrier vehicles owned Address Crew /Manpower Cost of operation PRIMARY DATA COLLECTION: Years of establishment Space requirement (m2) Current status No. of units Carrier vehicles contracted 1. Industrial Food Processing unit requirements Employee strength Material input Cost of operation « Material Requirements Quantity Type of employees Output products Dedicated logistics area « Energy Requirements No of employees Storage Area of Plant / Factory Quantity « Processing Details Output rate Cost of operation Daily avg. working hours Time taken per batch / kg. Space requirement « Space requirements 1.1 RAW MATERIAL PROCUREMENT DETAILS Power sources Electric sub station « Logistics requirements Name Catchment area / Market Requirement (per batch/day) Water supply reservoirs « Emission Details Contractual Farms if any Water source 4.1 OTHER UTILITES SECONDARY DATA COLLECTION: Raw materials Water requirement Name Other requirement Facility 1. Infrastructural provisions for Industrial Park Classification / Grading 2.1 PACKAGING DETAILS Administration Building « Types of Services Stay facilities Amount Packaged products « Capacity of Services Price of acquisition Name of product Central canteen Seasonal variation Packaging raw material Parking area « Planning parameters Shelf life (in hours) Preservation process Security block 2. Infrastructural provisions for SEZ Cost per batch / unit Alternative market Machinery used Medical centre « Types of Services Mode of transport 1.2 FINAL PRODUCT DISTRIBUTION DETAILS Crew /Manpower Inland Container Depot « Capacity of Services Area of marketing Output rate Time taken per batch / unit R & D laboratory « Planning parameters Sub-contracted from Space requirement (m2) Quality Control Lab 4. Data regarding agricultural & food processing Direct export Indirect export No. of units 5. POLICY IMPLEMENTATION & REGULATIONS infrastructure in West Bengal 3. EMISSION DETAILS Incentives availed on raw materials Final Product Types « Block wise data Incentives availed on machinery Name Description / Quality Classification (Fruits, vegetables, others) Incentives availed on logistics Amount Emission rate / Amount Incentives availed on land EXPECTED SOURCES: Disposal technology Price of sale Space requirement Tax concessions availed WBIDC, APIIC, GIDC, FRITOLAY INDIA PVT LTD., DREAM Seasonal variation Shelf life Disposal area Export concessions availed BAKE PVT LTD., WEST BENGAL STATE HORTICULTURE & Alternative market Recycling practices EIA implementation FOOD PROCESSING DEPARTMENT. End products of recycling Mode of transport Corporate social responsibility
  • 30.
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