10 Things That Will Shape the Future of Education.pdf
M.TECH Project, Sem 3 presentation
1. 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
2. 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 = = =
3. 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
4. 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).
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 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
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 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.
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 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
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 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
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 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.
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)