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Opportunities in Agriculture
&
Food Processing
Vijay Kumar Chole
Vice President, Satara Mega Food Park Pvt. Ltd.
vijaychole@gmail.com
Future of Farming/ Agriculture
 Post corona there will be global recession in almost all
sectors except Agri and Food, medical, health and sectors
connected to needs of the People.
 People have become aware of the role of immunity in
recovery from Corona
 This will be big opportunity for Natural, Organic farming,
Value chains, Traceable Food, residue free items as
Consumer's propensity to buy such items will increase thereby
creating demand pull.
 There will be growing tendency to go for healthy n healing.
The *Agriculture commodities, Produce* of such value chains
will become *Products* .
vijaychole@gmail.com
Future of Farming/ Agriculture
CHALLENGES:-
 The Challenges for Sustainable Agriculture will be there which
needs to be addressed
 There are challenges of Soil, Climate, Prices, Water availability,
Labour availability
 In Developing countries there are challenges of Technology
transfer and adaption, fragmented land holdings, ICT in
Agriculture
 World over there are issues and challenges in Post Harvest
Management, Value Chains, Post Harvest Losses
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Future of Farming/ Agriculture
CHALLENGES:-
 The Growth & development of all the farmers should be
inclusive irrespective of land holding size
 In Developing countries the public & private investment in
Agriculture is lagging.
 Rising costs of Agri inputs are big concern vis a vis
Agriculture produce prices realization.
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Everything negative - pressure, challenges –
is all an opportunity for me to rise.
vijaychole@gmail.com
Future of Farming/ Agriculture
 India is predominantly an Agrarian economy.
 Given the demographics and the natural resources Agriculture and Food
Processing industry in India have incomparable advantages.
 The models of developed economies cannot be replicated as such in India.
 We need models which will boost Agri, Horticulture and Rural growth and
development.
 The need is to have best of trainings, handholding services, right technology,
planning, value chains, end to end, organized services, glamour etc in
Agriculture. And it is available now
 Already there are lot of policy initiatives viz First National Agriculture
Exports Policy, Food Processing Policy, Pest Management act etc and the
latest Atmanirbhar intervention which are adding to the Pre and post harvest
management enhancement in Agriculture in India.
vijaychole@gmail.com
Change Paradigm, Mindset, Actions will
follow…VISION….
सोच को बदलो , ससतारे बदल जायेंगे
नजर को बदलो, नजारे बदल जायेंगे
कश्तीयों को बदलने की जरूरत नही
ददशाओंको बदलो ककनारे बदल जायेंगे
Introspect, Investigate, Develop your passion, interest
PERSONAL VISION, MISSION, LIFE AND CAREER OBJECTIVES
vijaychole@gmail.com
Opportunities in Farming/ Agriculture
 FPCs, FPOs, SHGs Farm to Fork
 Value Chains with Traceability, Bargaining Power E.g Mahagrapes, MahaFPCs, Sahyadri,
 Precision and ICT Based farming
 Skill Development, Service Provider, Extension worker
 Farming Systems, Supplementary, Complementary Enterprises
 Apiculture- Subsidy 50 to 75 %, Sericulture- Subsidy upto 60 %
 Dairy- Value Chain. We can work with Coop, Private Dairies or have community set up with
scheme. There is Dairy Entrepreneurship Development Scheme (DEDS) by NABARD ( New
Notification Awaited). There are also schemes by Animal Husbandry and Dairy Department,
government of Maharashtra.
 Poultry Value Chain- There are some companies like Venkys, Baramati Agro, Amir Chicken who
work with Farmers for backward integration with Assured buy back. There is scheme
for Starting Broiler Poultry Farming Business on Contract Basis by tribal Department
 Goat Rearing , Scheme for Supply of goat Units under Tribal Development Department.
Nabard, DADH also has National Livestock Mission ( 20-21 Notification awaited)
 Mushroom Production
 Oil seed 70% is imported
 Contract farming and Backward integration with F n V Companies, Food Processors,
Aggregators etc
vijaychole@gmail.com
Resource Agencies
 SMART, POCRA, 10,000 FPCs scheme Govt of India
SMART ( World Bank )- Budget Rs.2300 cr. 750 Sub projects for Productive
Partnerships (PPs), Market Access Plans ( MAPs), Complimentary Innovation
investments (CIIs), Warehouse Business investments (WBIs).
 NSDC ASCI Agriculture Skill Council of India
 APEDA, NHB
 Govt of Maharashtra, Department of Agri, Schemes for farmers and farming
 Agriculture, Veterinary universities Extension, Projects for Farmers, Livestock
 Tribal Development Department of Maharashtra and India
 Tribal Training and Research Institute (TRTI), govt of Maharashtra.
 TRTI’s Entrepreneurship and skill Development Project
 MoFPI- Schemes for Backward integration, forward integration, agro clusters,
individual units
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Resource Agencies
 Nabard- National Livestock Mission, Dairy Entrepreneurship Scheme, POPI
(FPO Development), Marketing infrastructure creation other Schemes
 SFAC ( Small Farmers Agribusiness Consortium)
 National Bee Keeping and Honey Mission
 Maharashtra State Rural Livelihood Mission
 Micro Finance Companies
 कृ षी विभागातील योजना
https://navnathkolapkar.blogspot.com/2019/11/blog-post_75.html?m=1
vijaychole@gmail.com
Recent Announcements
 Financing facility of Rs. 1,00,000 crore will be provided for funding Agriculture
Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural
Cooperative Societies, Farmers Producer Organisations, Agriculture entrepreneurs,
Start-ups, etc.)
 Rs 10,000 crores scheme for Formalisation of Micro Food Enterprises (MFE) ,2 lakh
MFEs . Existing micro food enterprises, Farmer Producer Organisations, Self Help
Groups and Cooperatives to be supported
 An Animal Husbandry Infrastructure Development Fund of Rs. 15,000 crore will be
set up. Aim to support private investment in Dairy Processing, value addition and
cattle feed infrastructure. Incentives to be given for establishing plants for export of
niche products
 Promotion of Herbal Cultivation : Rs. 4000 crore
 Beekeeping initiatives –Rs 500 crores. Infrastructure development related to
Integrated Beekeeping Development Centres, Collection, Marketing and Storage
Centres, Post Harvest & value Addition facilities e
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Demand Drivers for food Processing
Food
Processing
Demand
Drivers
Growing nuclear
families and working
women
Rising demand for
functional food
(oatmeal, etc)
Increasing modern trade
formats and private
label penetration
Increasing urbanization
– lifestyle and
aspirations
Changing demographics
– Rise in disposable
incomes
Increasing spending on
food products
vijaychole@gmail.com
Food processing still at a nascent
stage
Level of processing
(Fruits & Vegetables)
❑ USA- 80 %
❑ France - 70%
❑ Malaysia- 80 %
❑ Thailand- 30 %
❑ India - 6%
Level of Processing
(Perishable products)
2.2%
Organized Unorganized Total
❑ Fruits / Vegetables 1.3% 0.8%
❑ Milk /milk products 13% 22%
❑ Buffalo Meat 21% -
❑ Poultry 6% -
❑ Marine Products 8% 15%
35%
21%
6%
21%
Covid 19 will make this
15% In next 2 years
vijaychole@gmail.com
How Big is Food Market –
Growth factors
Indian Population
120 Cr
Total Families 40 Cr
Monthly Food Expense
Rs.3000 /family
Total domestic demand
120000Cr/M
Wellness and Hygiene is new normal
Preference for food over medicines
Food and Nutrition goes in hand
Shift towards healthy habits
Nutraceuticals, Herbal, Ayurveda
High demand for traditional foods
Immunity boosting – New Mantra
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26
Post Covid-19 Indian Food Trends
Cloud
Kitchen
Safe
Packaging
E
Platform
Packed
Vs. Loose
Export
Home
cooked
Foods
Convenience
Longer
shelflife
RTE,RTC
,On the
go food
Immunity
foods –
Mental
Health
Cut
Vegetables
Functional
food,
nutraceuticals
vijaychole@gmail.com
Food Processing will adopt new changes
• New Innovative Techniques
• Digitalisation
• More mechanisation
• Artificial Intelligence
• Bid data
• Machine learnings
• Core strength
• Specialisation
• 3rd Party Packing / White labelling
• Manufacturing Vs, Marketing
32
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Export will be a big opportunity
China’s loss will be INDIA’S GAIN..
International Sentiments against
China
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▪ China’s Export is 5
times of India in
Processed food
▪ Even if India gets 20%
of Share
▪ Additional 20,000 Cr
Processed foods
export potential
India’s Opportunity
Particular China India
Vegetables Prepared, Not Frozen 1551.95 38.57
Food preps., n.e.s. 1533.54 276.60
Spices, Condiments, Sauces 1039.21 54.61
Edible parts of plants (prepared / preserved) 961.35 33.14
Sugar confectionery other than chewing gum 823.14 102.53
Vegetables (cooked / Uncooked) 791.43 13.95
Dried vegetables (cut / sliced) 677.36 25.05
Pasta 660.11 13.42
39.54Ground-nuts
Prepared
foods Dried
Vegetables
Pasta
649.98
Nuts (excl. ground-
nuts)
511.75 69.91
Nuts
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Idea to Start
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But who will Sustain?
▪ Good Financial controls
-Low capital
▪ R&D focus
-Outsourcing
▪ Strong consumer
understanding
▪ Early movers
▪ Playing on strengths
▪ Working on core
*
Innovative
Innovative
Innovative
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Successful Entrepreneurs
Successful Entrepreneurs
▪ Who can see the future
▪ Creative and Innovative
▪ Position in shifting or new
markets
▪ Create new products
▪ Create new processes
▪ Create new delivery
▪ Create New Markets
▪ Take risk
Unsuccessful Entrepreneurs
▪ Blame gamer
▪ Self marketer
▪ Poor Managers
▪ Low work ethic
▪ Inefficient
▪ Failure to plan and prepare
▪ Poor money managervijaychole@gmail.com
India has good
agriculture
outpour
Agriculture =
Food Processing
India has good
domestic demand
China’s loss
India’s gain
Innovation is
MUST
Health &
Wellness is new
NORMAL
Food Industry has excellent future post Covid-19
FP Startup Good
scope
vijaychole@gmail.com
More than 42 Food Parks. 1500 Cold chain and other units
World Food India, 60 Countires, 200 MNCs. Expected USD 1 Billion investment @ 24 %
Kisan Sampada Scheme (Rs.6000 Cr) , Operation Greens ( TOP- Rs. 500 Crore)
Agro Food Processing Policy by Government of Maharashtra
CM Food Processing Scheme
PSI 2013- 50-90 % reimbursement, Exemption on the investment
National Agriculture Export Policy aimed at doubling countries farm export to 60 billion
by 2022, placing India among top 10 agriculture exporters in the world and promoting
stability in exporting rates
The share of India’s high value and value added agriculture produce in its agriculture
export basket is less than 15% compared to 25% in the US and 49% in China.
India’s export of value added products is very low and there is huge scope for
improvement.
Food Processing: Recent Developments
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Sunrise Sector: Increase in demand and consumption of processed food
products due to changing life styles and eating habbits, Urbanisation,
Increase in disposable incomes, drive for convenience
Growth and Size: Grocery and Food, Morgan stanley Expects India’s Food
and Grocery Segment to become fastest growing category expanding at a
Compounded annual growth rate of 141 % by 2020 and contributing USD 15
billion or 12.5 % of the GDP of overall retail sales
All eyes are on India as a Market for their Products may it be Delmonte,
Pepsi, Coke, Nestle etc.
 100 % FDI in Food Retail…
 White Labelling..
 Machines, equipments and infrastructure requirement including raw and
packaging material are easily available
 Logistics support easily available
 Finance PSL sector, Lot of Fiscal and Financial Incentives
Domestic Market
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vijaychole@gmail.com
Processed and Value added Products
• Preservation
• Processing
• Extended shelf life
• Convenience
• Value addition, Fortification
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Processed and Value added Products
 Fruit Pulp/Juice/Concentrate
 Tomato puree/paste, canned fruit, frozen fruits,
IQF fruits and vegetables
 Ginger-garlic paste
 Dehydrated fruits/vegetables, Onion powder,
garlic powder, dehydrated ginger
vijaychole@gmail.com
Processed Products
 Milk and milk products: Processed and packaged
milk, UHT, milk powder and other value added
products like butter, cheese, buttermilk, curd, fruit
yoghurts etc.
 Meat, poultry and marine products
 Grain processing: whole grain, multigrain, atta,
maida, flour, bakery (bread, biscuit, cake etc), oil,
RTE, RTC, RTS
 These are just some examples, possibilities are
many more
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Processed Products
• Jams, Jelly, Fruit Bar, Fruit Cheese
• Tutty Frutty
• Chips, extruded products like kurkure, Chilli milly, fried nuts
etc
• Fruit powders
• Thermally processed fruit pulps/juices
• Traditional, Preserved fruits/vegetables, Pickles, Chutney,
Suaces, Papad etc
• Beverages, Squash, Crush, Syrup, Sharbat, Toppings
• Ready to eat foods in retortable/multilayer packages
• Ready to drink/serve beverages in bottles/tetrapak
vijaychole@gmail.com
Processing planning :
 The secret of a well planned fruit and vegetable
processing centre is that it must be designed to
operate for as many months of the year as possible.
 A typical processing centre or factory should
process four or five types of fruits/ veg/ Agri
Produce harvested at different times of the year
and two or three vegetables.
 Advanced planning is necessary to process a large
range of products in varied weather and
temperature
vijaychole@gmail.com
Investments
 Food industry can be started with investments as low as 1
lac to 10 Cr and above, Depends on the type of product to
be manufactured. Can range from an artisan, kitchen
scale to a very large scale manufacturing unit
 Lines ranging from fully manual to fully automatic
available depending on the project and capacity required
 Decent profit margins, planned break even and payback
period are salient features.. market assessment and
marketing is the Key
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Concept to Commissioning
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PESTEL Analysis
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 Market Orientation or Product Orientation Value Proposition:
Companies do not compete with products or services, but
rather with the entire value proposition.
 Tradition or Innovation: Product, Market Lifecycle
 Local or Global: Consumption Pattern, Distribution network
 Big or Small: Flexibility, Economy of scale, Mass or Niche Market
How to choose a product
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B2C
• RTE, Juices, Candies, Cookies, Milk and
similar FMCG products
B2B
• Pulps and concentrates, Frozen Fruits and
Vegetables, Dehydrated fruits and vegetables,
Corn Starch similar intermediate products
How to chose a product
Know your customer
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1. Fruits and vegetable products:Jam/Jellies/Pickles/Sauces/Pulp/Frozen Fruits
2. Bakery Products: Bread/Buns/Cookies/Rusk/Cakes
3. Confectionary: Hard Boiled Candies/Fruit Based Candies, Bubble Gums, Chocolates etc.
4. Wafers and Fryums: Potato Wafers, Banana Wafers
5. Spices and Its Blends: Ready spice mixes, gravies, ground spices etc.
6. Cereal Products: Atta, Flours, Multigrain Flours, Popcorns, Puffs, Noodles, Roasted and
baked snacks etc.
7. Juices and RTD: Fruit Juices, vegetable Juices, carbonated soft drinks, vitamin water,
energy drinks, sport drinks
8. Milk and Milk Products: Market Milk, Curd, Lassi, Flavoured Milk, Sweets
9. RTE/RTC: Frozen Ready to eat Products, Retort Ready to Eat Products
How to choose product
Study Product Categories
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 Search whether similar product available in market
 Their Packaging
 Pricing
 Where they are selling
 Current market demand or growth
 Consumer awareness
How to choose product
Study Competitors
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1. Write Down What Exact Product or Product Mix you want
to Manufacture
2. List all raw materials required for production
3. Prepare process flow chart
4. Study what type of packaging required
5. How many variants you want to launch (In terms of
flavour/colour/shape
6. List all machineries required for production
7. List all SKUs
How to chose product
Define Product
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 Raw Material Availability
o E.g. Pulping Plant near mango growing region
 Marketing Feasibility
o Select target market (Regional, National (Domestic),
Overseas (Export)
o Need of market
o Demand supply gap
o Major Competitors
o Current Selling prices
Check Feasibility
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 Technical Feasibility
• What plant and machinery required for production
• Whether plant and machinery available in locally or
needs to be imported
• Whether product is technically feasible
• Whether technology is already commercialized
• Decide on production capacity
Check Feasibility
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 Financial Viability
• Work out of preliminary cost of project
• Means of Finance
• Work out cost of production
• Work out financial projections
Check Feasibility
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Sr.No. COST OF PROJECT Rs.(lakhs)
1 Land development and repairing 10.00
2 Building (Civil & Structural Work) 300.00
3 Machinery & Equipments 339.83
4 Furniture & Fixtures 5.00
5 QC Lab 15.00
6 Computer, UPS 3.00
7 Preliminary & Preoperative Expenses 26.51
9 Interest during construction 69.91
10 Margin for Working Capital 19.80
Total Cost of Project 789.06
Cost of Project
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Sr.
No. MEANS OF FINANCE Rs.(lacs)
1 Promoters Contribution 25% 197.26
2 Term Loan From Bank 391.79
3 Government Grant-in-aid or subsidy 200.00
Total Means of Finance 789.06
Means of Finance
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Product Cost
Direct Cost
(Variable Cost)
Indirect Cost
(Fixed Cost)
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 Cost of Ingredients
 Cost of Packaging Material
 Cost of Manpower
 Cost of Utilities
 Cost of Consumables
 Cost of Quality/Lab
Direct Cost
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 Salary of Staff (Production, Quality, Account, Sales,
Purchase, Store, Admin, HR)
 Transportation Cost (Transport Cost of RM, PM, FG)
 Sales and Marketing Cost (Advertisement, promotions,
Schemes, Travel cost of sales employees,
Incentives/Commissions etc.)
 Storage Cost
 Admin Cost
 Cost of Capital/Equity
 Interest on Loan
Indirect Cost
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Instant Flavored Oats (Product Costing)
Exercise
Batch Size (Kg) 1
Sr.
No. Raw Material %
Amount in
Kg Rs./Kg
1
Cut Oats( Instant
oats )
20.00 0.200 85 17.00
2 Rolled Oats 25.00 0.250 85 21.25
3 DRY Fruits 12.00 0.120 550 66.00
4 Multigrains 15.00 0.150 100 15.00
5 Butter 2.00 0.020 370 7.40
6 Sugar 19.00 0.190 34 6.46
7 Honey 2.00 0.020 190 3.80
8 Fruit Powder 5.00 0.050 200 10.00
100.00 1.000 146.9
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Sr.No. Number of Packets in 1Kg
(50gm/packet)
20.00 Per Kg/Cost
1 RM Costing Per Packet 7.35 146.910
2 Cup Costing 1.60 32.000
3 Foil Costing 0.70 14.000
4 Label Costing 1.50 30.000
5 Secondary Packaging Costing 1.80 36.000
6 Tertiary Packaging 2.00 40.000
7 Processing and Labour 3.00 60.000
8 Product Costing 17.95 358.910
9 Margin @20% 21.53 430.692
10 Transport 2.50 50.000
11 Ex Factory 24.03 480.692
12 SS Margin 6% 25.48 509.534
13 Distributor Margin 12% 28.53 570.678
14 Retailer Margin 25% 35.67 713.347
GST 12% 39.95 798.949
MRP 40
Product Costing-II
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 Plant Location
• Raw material based industries should be located near
crop production region (Sugar, Pulping Plants)
• Processed products like Biscuits, Noodles etc. should be
located near to Market
• Availability of water (Assess requirement of water for
production)
• Availability of Electricity
• Availability of skilled manpower
• Access to state and national highways or transportation
Selection of site
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 Check Market Demand/How much you can sale
 Check whether product is seasonal or round the year
 Check process time
 Cost of Machinery for selected capacity and
Investment in Fixed Capital
How to finalize capacity
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 Develop product in lab
 Arrange pilot scale trials
 Launch MVP (Minimum Viable Product)
 Get market feedback before investing in Fixed Capital
 Cost of Packaging material design, its MOQ, cost of lab, cost of
operation till break even point
Don’t miss these things
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 Ensure Product Quality in all aspects
 Ensure Transportation Time and Damage
 Ensure Shelf Life
 Terms of supply
 Taxation on product
 Payment Terms
While Launching Product
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 FSSAI License (Food Safety)
 Register Entity (Proprietor/Partnership/Pvt. Ltd.
 Udyog adhaar (MSME Registration)
 NA for land use (Change of land use)
 MPCB (Consent to Establish and Consent to Operate)
 Shop Act
 Building Plan Approval
 Fire NoC
 Registration under factories act
 Registration under PF and labour act and minimum wages act
 GST Registration
FEW Statutory Permissions
for Starting the Business
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 MoFPI (Ministry of Food Processing Industry)
 NABARD (National Bank for Agriculture and Rural Development)
 National Horticulture Board
 SFAC (Small Farmers Agribusiness Consortium)
 MSME (Ministry of Micro, Small & Medium Enterprises) Department of Industries, MSME
Scheme, Cluster Scheme, PMEGP Scheme- 35 % subsidy
 State/Central Agriculture Ministries
 Khadi Village Industries Commission ( KVIC)
 APEDA
 FICSI Food Industry Capacity & Skill Initiative
Resource Agencies
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Value Added /Fresh Packed
Produce as an Opportunity
 Tremendous opportunity for fresh, cleaned/graded whole/ cut, packed
Table, cooking purpose Fruits n Vegetables. e.g Tokri.com,
Go4fresh.com, bigbasket.com, Star Bazar, Malls
 Fresh/ Frozen for domestic market, institutional market and export
 Requirements- Traceability, Freshness, adequate and attractive
packaging
 Opportunities in infrastructure set up including cold storage, reefer
vans, warehousing i.e. Aggregation and supply chain management/
Backward integration.
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Value Addition and Food Processing
 Few Examples
 Project segment -20 lakhs.xlsx
 The Estimates are rough and for broader understanding. Actual Project Costs
may differ as per various factors viz: Area, Capacity, Market to be tapped,
nearness to the market, skill set of the entrepreneur etc.
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The Most Lucrative Investment Destination
for Agro food-processing in India
Farm to Fork Concept
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Objective of Mega Food Park Scheme
 The primary objective of the MFPS is to provide modern
infrastructure facilities for the food processing along the
value chain from the farm to the market.
 It will include creation of processing infrastructure near the
farm, transportation, logistics and centralized processing
centers and infrastructure to reach Markets.
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Supply Chain Model –Mega Food Park
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PPC Location
Sr.No. Location Commodities available in catchment area District near
Catchment Area
1 Narayangaon Maize, Wheat, Chilly/Dry chilly, Garlic, Gram,
Groundnut, Tur, Soybean, Onion, Tomato,
Brinjal, Cabbage, Carrot, Cauliflower & leafy
vegetables, Potato, Ladies finger, Lemon,
Guava, Mango, Pomegranate, Sweet lime,
Custard Apple, Grapes, Tamarind, Coconut,
Cashew
Ahmednagar, Pune,
Raigad
3 Pandharpur Rice, Maize, Wheat, Urad, Gram, Mango,
Banana, Tomato, Chilly, Ladies finger, Onion,
Grapes, Mango, Pomegranate, Banana,
Turmeric, Ginger, Soybean, Lemon, Papaya,
Jawar, Wheat, Bajara, Urid dal, Toor dal,
Moong Dal, Chick pea
Solapur and Nearby
Marathwada region
4 Ajara Maize, Rice, Gram, Chilly, Alphonso Mango,
Banana, Tomato, Potato, Carrot, Grapes,
Mango, Pomegranate, Guava, Soybean,
Lemon, Cashew, Coconut, Custard apple
Ratnagiri, Sindhudurg,
Kolhapur, Sangli
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Location
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Distance from Pune
Location
Distance from Mumbai
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 Ideal for Tapping Overseas Markets
• Located on well-laid 6-lane Mumbai-Bangalore NH 48 with Independent Approach
road
• 4.30 -hour access to JNPT, India’s Largest Container Port, and JSW Jaigarh, the first
deep-sea, all-weather, 24/7 private port in the state.
 Ideal For Tapping Local Markets
• Overnight road access to 400 million Indians having per-capita-income higher than
national average.
• 9 kms from railway line, giving easy access to additional 20% of India’s market of
processed food.
• Hence over half of India’s processed food market is within reach.
• Includes Goa, Tamil Nadu, Telangana, Kerala, Gujarat, Maharashtra, Madhya Pradesh,
Andhrapradesh etc.
Strategic Location: Easy Market Access
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 We have set up 4 primary food processing centers (PPC) and more than 10 CCs in catchment of
6-7 Districts Which gives you almost all types of Agri and Horticultural produce.
 Catchment area has diversified agro-climate, and is well-irrigated, ensuring uninterrupted,
round-the-year supply of agricultural produce for processing.

 These PPCs will be equipped with world-class facilities like cold storages, warehouses, grading
& sorting capability, reefer vans, mobile collection centers and basic pre-processing facilities
 Raw-material catchment area.
• Sugarcane (Maharashtra is India’s Largest Sugar Producer)
• Mango, Grape, Pomegranate, Strawberry, Cashew, Jackfruit, Custard Apple, Sapota,
Banana, Guava, Wild Berries, Orange, Lemon.
• Rice, Wheat, Bajra, Jowar, Soyabean, Pulses and Cereals.
• Tomato, Onion, Potato, Sweet Corn, Baby Corn and many others.
• Chillies, Turmeric, Ginger, Garlic, Black Pepper, Cardamom
Rich Bio-Diversity of Agri Produce
and PPCs
vijaychole@gmail.com
Concept to Commissioning services
to all members
vijaychole@gmail.com
Government Benefits and Schemes
Ministry of Food Processing has initiated Sampada Scheme which will provide grant in
aid upto 35% of the elgible Project Cost maximum upto Rs.5.00 cr
National Bank for Agriculture and Rural Development (NABARD)
- Fund for Construction, Expansion, Modernization of Cold Storages and Storages for
Horticulture Produce Food processing units
- Subsidized rate of Interest
Benefit Under New Industrial Policy 2019 (70 % Reimbursement
of the capital cost of the project over period of 8-10 years)
- GST reimbursement
- Industrial Promotion Subsidy
- Interest Subsidy
- Exemption from Electricity Duty
- Exemption from Stamp Duty
- Power Tariff Subsidy
- Incentives for Strengthening MSMEs and LSI
Chief Ministers Food Processing Scheme Subsidy
Upto Rs. 50 Lakhs
vijaychole@gmail.com
 Complete Plug-and-Play Layout.
 Warehouse with racking system,
pulping line with aseptic packing,
ripening chambers, hi-tech cold
storage, fork lift, reefer vans,
pack house, etc. on a pay-per-use
basis.
 Security, Water, Electricity, ETP,
STP, WTP and Sewer arrangement
in place.
 Promise of commercial prosperity
in Satara Mega Food Park backed
by strength of BVG Group.
Common Infrastructure and Facilities
vijaychole@gmail.com
ADMINISTRATION BUILDING
RESIDENTIAL QUARTERS
TRAINING CENTER
STANDARD FACTORY DESIGN
- Residential Quarters
- Training Halls
- Hostel
- Auditorium
- Library
- Medical Centre
- Laundry and Housekeeping
Services
- Administration Office
- Canteen
Shared Unique Facilities
vijaychole@gmail.com
Project Layout Plan
vijaychole@gmail.com
Contact:- vijaychole@gmail.com
vijaychole@gmail.com
vijaychole@gmail.com
vijaychole@gmail.com
vijaychole@gmail.com
Our Brands
vijaychole@gmail.com
Our Brands
vijaychole@gmail.com
 BVG India Ltd is India’s Largest Integrated Services Company with 70000+
employees, 750+ customers including Rashtrapati Bhavan, PM’s Home &
Office, Supreme Court, Volkswagen, Mercedes Benz, Accenture, ITC, and
many others with annual turnover of more than USD 300 Million
 We have deep expertise in running operations of factories, industries,
hospitals.
 20,000 (out of 70000) colleagues of BVG Group family come from in and
around Satara. Promoters of Satara Mega Food Park are also natives of
Satara.
 We have access over 1,50,000 acres of farmland, among our family
members.
Strong Group Company Support from BVG
vijaychole@gmail.com
 Excellent working relationships with Government at all levels-
Galli to Delhi
 Excellent support in all business areas including plant set-up,
day to day operations, administration, human resources, power,
industrial relations, waste management, logistics, etc.
 BVG can support from concept to commissioning to running day-
to-day operations for food park occupants , factories
 BVG is also open to business partnerships, including JVs.
Strong Service Support from BVG
vijaychole@gmail.com
 Apart from Above if the investor has sizeable investment to be made in
Satara Food Park, we can assist / get customized benefits from the State
government for the venture. No Park/ Industrial cluster will offer this
 BVG Life Sciences Ltd makes 100% herbal, zero-residue, crop care
products, giving strong farmer connect. Talent pool of our company can
provide all ground-level support.
 BVG’s Group can procure raw material, undertake contract farming for
food park occupants.
 We can grow all Agri-Horti produce like cereals, pulses, fruits, vegetables and
spices for dedicated and captive consumption.
Strong Support for Captive Production
vijaychole@gmail.com
 Livestock and Crop Registry India Ltd has pioneered DNA-based animal &
geo-tagged farm-registration system, further helping us establish strong
connections with farmers.
 BVG Clean Energy Ltd develops, installs and commissions clean energy
projects. We are in process of setting up a 200 MW hybrid solar plant. We
can help you establish captive power projects, with prospects of tax
rebates.
 OOH Media (India) Pvt. Ltd has 7000+ outdoor screens, with a strong brand
strategy team. We can help you in developing as well as marketing your
brand.
Strong Group Company Support… contd
vijaychole@gmail.com
 It is our business to help you grow and prosper your
business… We take care of your Non core activities and
business so that you focus on your core business
 We promise you commercial prosperity in Satara Food Park
Pvt. Ltd.
 25 years of experience of BVG Group and 70,000 plus family
members of BVG Group is delighted to be at your service to
help all of us succeed.
 We welcome you to Satara Mega Food Park Pvt. Ltd…..
Promoter’s Promise…
vijaychole@gmail.com
Opportunities in food processing -Mega food park

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Opportunities in food processing -Mega food park

  • 1. Opportunities in Agriculture & Food Processing Vijay Kumar Chole Vice President, Satara Mega Food Park Pvt. Ltd. vijaychole@gmail.com
  • 2. Future of Farming/ Agriculture  Post corona there will be global recession in almost all sectors except Agri and Food, medical, health and sectors connected to needs of the People.  People have become aware of the role of immunity in recovery from Corona  This will be big opportunity for Natural, Organic farming, Value chains, Traceable Food, residue free items as Consumer's propensity to buy such items will increase thereby creating demand pull.  There will be growing tendency to go for healthy n healing. The *Agriculture commodities, Produce* of such value chains will become *Products* . vijaychole@gmail.com
  • 3. Future of Farming/ Agriculture CHALLENGES:-  The Challenges for Sustainable Agriculture will be there which needs to be addressed  There are challenges of Soil, Climate, Prices, Water availability, Labour availability  In Developing countries there are challenges of Technology transfer and adaption, fragmented land holdings, ICT in Agriculture  World over there are issues and challenges in Post Harvest Management, Value Chains, Post Harvest Losses vijaychole@gmail.com
  • 4. Future of Farming/ Agriculture CHALLENGES:-  The Growth & development of all the farmers should be inclusive irrespective of land holding size  In Developing countries the public & private investment in Agriculture is lagging.  Rising costs of Agri inputs are big concern vis a vis Agriculture produce prices realization. vijaychole@gmail.com
  • 5. Everything negative - pressure, challenges – is all an opportunity for me to rise. vijaychole@gmail.com
  • 6. Future of Farming/ Agriculture  India is predominantly an Agrarian economy.  Given the demographics and the natural resources Agriculture and Food Processing industry in India have incomparable advantages.  The models of developed economies cannot be replicated as such in India.  We need models which will boost Agri, Horticulture and Rural growth and development.  The need is to have best of trainings, handholding services, right technology, planning, value chains, end to end, organized services, glamour etc in Agriculture. And it is available now  Already there are lot of policy initiatives viz First National Agriculture Exports Policy, Food Processing Policy, Pest Management act etc and the latest Atmanirbhar intervention which are adding to the Pre and post harvest management enhancement in Agriculture in India. vijaychole@gmail.com
  • 7. Change Paradigm, Mindset, Actions will follow…VISION…. सोच को बदलो , ससतारे बदल जायेंगे नजर को बदलो, नजारे बदल जायेंगे कश्तीयों को बदलने की जरूरत नही ददशाओंको बदलो ककनारे बदल जायेंगे Introspect, Investigate, Develop your passion, interest PERSONAL VISION, MISSION, LIFE AND CAREER OBJECTIVES vijaychole@gmail.com
  • 8. Opportunities in Farming/ Agriculture  FPCs, FPOs, SHGs Farm to Fork  Value Chains with Traceability, Bargaining Power E.g Mahagrapes, MahaFPCs, Sahyadri,  Precision and ICT Based farming  Skill Development, Service Provider, Extension worker  Farming Systems, Supplementary, Complementary Enterprises  Apiculture- Subsidy 50 to 75 %, Sericulture- Subsidy upto 60 %  Dairy- Value Chain. We can work with Coop, Private Dairies or have community set up with scheme. There is Dairy Entrepreneurship Development Scheme (DEDS) by NABARD ( New Notification Awaited). There are also schemes by Animal Husbandry and Dairy Department, government of Maharashtra.  Poultry Value Chain- There are some companies like Venkys, Baramati Agro, Amir Chicken who work with Farmers for backward integration with Assured buy back. There is scheme for Starting Broiler Poultry Farming Business on Contract Basis by tribal Department  Goat Rearing , Scheme for Supply of goat Units under Tribal Development Department. Nabard, DADH also has National Livestock Mission ( 20-21 Notification awaited)  Mushroom Production  Oil seed 70% is imported  Contract farming and Backward integration with F n V Companies, Food Processors, Aggregators etc vijaychole@gmail.com
  • 9. Resource Agencies  SMART, POCRA, 10,000 FPCs scheme Govt of India SMART ( World Bank )- Budget Rs.2300 cr. 750 Sub projects for Productive Partnerships (PPs), Market Access Plans ( MAPs), Complimentary Innovation investments (CIIs), Warehouse Business investments (WBIs).  NSDC ASCI Agriculture Skill Council of India  APEDA, NHB  Govt of Maharashtra, Department of Agri, Schemes for farmers and farming  Agriculture, Veterinary universities Extension, Projects for Farmers, Livestock  Tribal Development Department of Maharashtra and India  Tribal Training and Research Institute (TRTI), govt of Maharashtra.  TRTI’s Entrepreneurship and skill Development Project  MoFPI- Schemes for Backward integration, forward integration, agro clusters, individual units vijaychole@gmail.com
  • 10. Resource Agencies  Nabard- National Livestock Mission, Dairy Entrepreneurship Scheme, POPI (FPO Development), Marketing infrastructure creation other Schemes  SFAC ( Small Farmers Agribusiness Consortium)  National Bee Keeping and Honey Mission  Maharashtra State Rural Livelihood Mission  Micro Finance Companies  कृ षी विभागातील योजना https://navnathkolapkar.blogspot.com/2019/11/blog-post_75.html?m=1 vijaychole@gmail.com
  • 11. Recent Announcements  Financing facility of Rs. 1,00,000 crore will be provided for funding Agriculture Infrastructure Projects at farm-gate & aggregation points (Primary Agricultural Cooperative Societies, Farmers Producer Organisations, Agriculture entrepreneurs, Start-ups, etc.)  Rs 10,000 crores scheme for Formalisation of Micro Food Enterprises (MFE) ,2 lakh MFEs . Existing micro food enterprises, Farmer Producer Organisations, Self Help Groups and Cooperatives to be supported  An Animal Husbandry Infrastructure Development Fund of Rs. 15,000 crore will be set up. Aim to support private investment in Dairy Processing, value addition and cattle feed infrastructure. Incentives to be given for establishing plants for export of niche products  Promotion of Herbal Cultivation : Rs. 4000 crore  Beekeeping initiatives –Rs 500 crores. Infrastructure development related to Integrated Beekeeping Development Centres, Collection, Marketing and Storage Centres, Post Harvest & value Addition facilities e vijaychole@gmail.com
  • 12. Demand Drivers for food Processing Food Processing Demand Drivers Growing nuclear families and working women Rising demand for functional food (oatmeal, etc) Increasing modern trade formats and private label penetration Increasing urbanization – lifestyle and aspirations Changing demographics – Rise in disposable incomes Increasing spending on food products vijaychole@gmail.com
  • 13. Food processing still at a nascent stage Level of processing (Fruits & Vegetables) ❑ USA- 80 % ❑ France - 70% ❑ Malaysia- 80 % ❑ Thailand- 30 % ❑ India - 6% Level of Processing (Perishable products) 2.2% Organized Unorganized Total ❑ Fruits / Vegetables 1.3% 0.8% ❑ Milk /milk products 13% 22% ❑ Buffalo Meat 21% - ❑ Poultry 6% - ❑ Marine Products 8% 15% 35% 21% 6% 21% Covid 19 will make this 15% In next 2 years vijaychole@gmail.com
  • 14. How Big is Food Market – Growth factors Indian Population 120 Cr Total Families 40 Cr Monthly Food Expense Rs.3000 /family Total domestic demand 120000Cr/M Wellness and Hygiene is new normal Preference for food over medicines Food and Nutrition goes in hand Shift towards healthy habits Nutraceuticals, Herbal, Ayurveda High demand for traditional foods Immunity boosting – New Mantra vijaychole@gmail.com
  • 15. 26 Post Covid-19 Indian Food Trends Cloud Kitchen Safe Packaging E Platform Packed Vs. Loose Export Home cooked Foods Convenience Longer shelflife RTE,RTC ,On the go food Immunity foods – Mental Health Cut Vegetables Functional food, nutraceuticals vijaychole@gmail.com
  • 16. Food Processing will adopt new changes • New Innovative Techniques • Digitalisation • More mechanisation • Artificial Intelligence • Bid data • Machine learnings • Core strength • Specialisation • 3rd Party Packing / White labelling • Manufacturing Vs, Marketing 32 vijaychole@gmail.com
  • 17. Export will be a big opportunity China’s loss will be INDIA’S GAIN.. International Sentiments against China vijaychole@gmail.com ▪ China’s Export is 5 times of India in Processed food ▪ Even if India gets 20% of Share ▪ Additional 20,000 Cr Processed foods export potential
  • 18. India’s Opportunity Particular China India Vegetables Prepared, Not Frozen 1551.95 38.57 Food preps., n.e.s. 1533.54 276.60 Spices, Condiments, Sauces 1039.21 54.61 Edible parts of plants (prepared / preserved) 961.35 33.14 Sugar confectionery other than chewing gum 823.14 102.53 Vegetables (cooked / Uncooked) 791.43 13.95 Dried vegetables (cut / sliced) 677.36 25.05 Pasta 660.11 13.42 39.54Ground-nuts Prepared foods Dried Vegetables Pasta 649.98 Nuts (excl. ground- nuts) 511.75 69.91 Nuts vijaychole@gmail.com
  • 20. But who will Sustain? ▪ Good Financial controls -Low capital ▪ R&D focus -Outsourcing ▪ Strong consumer understanding ▪ Early movers ▪ Playing on strengths ▪ Working on core * Innovative Innovative Innovative vijaychole@gmail.com
  • 21. Successful Entrepreneurs Successful Entrepreneurs ▪ Who can see the future ▪ Creative and Innovative ▪ Position in shifting or new markets ▪ Create new products ▪ Create new processes ▪ Create new delivery ▪ Create New Markets ▪ Take risk Unsuccessful Entrepreneurs ▪ Blame gamer ▪ Self marketer ▪ Poor Managers ▪ Low work ethic ▪ Inefficient ▪ Failure to plan and prepare ▪ Poor money managervijaychole@gmail.com
  • 22. India has good agriculture outpour Agriculture = Food Processing India has good domestic demand China’s loss India’s gain Innovation is MUST Health & Wellness is new NORMAL Food Industry has excellent future post Covid-19 FP Startup Good scope vijaychole@gmail.com
  • 23. More than 42 Food Parks. 1500 Cold chain and other units World Food India, 60 Countires, 200 MNCs. Expected USD 1 Billion investment @ 24 % Kisan Sampada Scheme (Rs.6000 Cr) , Operation Greens ( TOP- Rs. 500 Crore) Agro Food Processing Policy by Government of Maharashtra CM Food Processing Scheme PSI 2013- 50-90 % reimbursement, Exemption on the investment National Agriculture Export Policy aimed at doubling countries farm export to 60 billion by 2022, placing India among top 10 agriculture exporters in the world and promoting stability in exporting rates The share of India’s high value and value added agriculture produce in its agriculture export basket is less than 15% compared to 25% in the US and 49% in China. India’s export of value added products is very low and there is huge scope for improvement. Food Processing: Recent Developments vijaychole@gmail.com
  • 24. Sunrise Sector: Increase in demand and consumption of processed food products due to changing life styles and eating habbits, Urbanisation, Increase in disposable incomes, drive for convenience Growth and Size: Grocery and Food, Morgan stanley Expects India’s Food and Grocery Segment to become fastest growing category expanding at a Compounded annual growth rate of 141 % by 2020 and contributing USD 15 billion or 12.5 % of the GDP of overall retail sales All eyes are on India as a Market for their Products may it be Delmonte, Pepsi, Coke, Nestle etc.  100 % FDI in Food Retail…  White Labelling..  Machines, equipments and infrastructure requirement including raw and packaging material are easily available  Logistics support easily available  Finance PSL sector, Lot of Fiscal and Financial Incentives Domestic Market vijaychole@gmail.com
  • 26. Processed and Value added Products • Preservation • Processing • Extended shelf life • Convenience • Value addition, Fortification vijaychole@gmail.com
  • 27. Processed and Value added Products  Fruit Pulp/Juice/Concentrate  Tomato puree/paste, canned fruit, frozen fruits, IQF fruits and vegetables  Ginger-garlic paste  Dehydrated fruits/vegetables, Onion powder, garlic powder, dehydrated ginger vijaychole@gmail.com
  • 28. Processed Products  Milk and milk products: Processed and packaged milk, UHT, milk powder and other value added products like butter, cheese, buttermilk, curd, fruit yoghurts etc.  Meat, poultry and marine products  Grain processing: whole grain, multigrain, atta, maida, flour, bakery (bread, biscuit, cake etc), oil, RTE, RTC, RTS  These are just some examples, possibilities are many more vijaychole@gmail.com
  • 29. Processed Products • Jams, Jelly, Fruit Bar, Fruit Cheese • Tutty Frutty • Chips, extruded products like kurkure, Chilli milly, fried nuts etc • Fruit powders • Thermally processed fruit pulps/juices • Traditional, Preserved fruits/vegetables, Pickles, Chutney, Suaces, Papad etc • Beverages, Squash, Crush, Syrup, Sharbat, Toppings • Ready to eat foods in retortable/multilayer packages • Ready to drink/serve beverages in bottles/tetrapak vijaychole@gmail.com
  • 30. Processing planning :  The secret of a well planned fruit and vegetable processing centre is that it must be designed to operate for as many months of the year as possible.  A typical processing centre or factory should process four or five types of fruits/ veg/ Agri Produce harvested at different times of the year and two or three vegetables.  Advanced planning is necessary to process a large range of products in varied weather and temperature vijaychole@gmail.com
  • 31. Investments  Food industry can be started with investments as low as 1 lac to 10 Cr and above, Depends on the type of product to be manufactured. Can range from an artisan, kitchen scale to a very large scale manufacturing unit  Lines ranging from fully manual to fully automatic available depending on the project and capacity required  Decent profit margins, planned break even and payback period are salient features.. market assessment and marketing is the Key vijaychole@gmail.com
  • 34.  Market Orientation or Product Orientation Value Proposition: Companies do not compete with products or services, but rather with the entire value proposition.  Tradition or Innovation: Product, Market Lifecycle  Local or Global: Consumption Pattern, Distribution network  Big or Small: Flexibility, Economy of scale, Mass or Niche Market How to choose a product vijaychole@gmail.com
  • 35. B2C • RTE, Juices, Candies, Cookies, Milk and similar FMCG products B2B • Pulps and concentrates, Frozen Fruits and Vegetables, Dehydrated fruits and vegetables, Corn Starch similar intermediate products How to chose a product Know your customer vijaychole@gmail.com
  • 36. 1. Fruits and vegetable products:Jam/Jellies/Pickles/Sauces/Pulp/Frozen Fruits 2. Bakery Products: Bread/Buns/Cookies/Rusk/Cakes 3. Confectionary: Hard Boiled Candies/Fruit Based Candies, Bubble Gums, Chocolates etc. 4. Wafers and Fryums: Potato Wafers, Banana Wafers 5. Spices and Its Blends: Ready spice mixes, gravies, ground spices etc. 6. Cereal Products: Atta, Flours, Multigrain Flours, Popcorns, Puffs, Noodles, Roasted and baked snacks etc. 7. Juices and RTD: Fruit Juices, vegetable Juices, carbonated soft drinks, vitamin water, energy drinks, sport drinks 8. Milk and Milk Products: Market Milk, Curd, Lassi, Flavoured Milk, Sweets 9. RTE/RTC: Frozen Ready to eat Products, Retort Ready to Eat Products How to choose product Study Product Categories vijaychole@gmail.com
  • 37.  Search whether similar product available in market  Their Packaging  Pricing  Where they are selling  Current market demand or growth  Consumer awareness How to choose product Study Competitors vijaychole@gmail.com
  • 38. 1. Write Down What Exact Product or Product Mix you want to Manufacture 2. List all raw materials required for production 3. Prepare process flow chart 4. Study what type of packaging required 5. How many variants you want to launch (In terms of flavour/colour/shape 6. List all machineries required for production 7. List all SKUs How to chose product Define Product vijaychole@gmail.com
  • 39.  Raw Material Availability o E.g. Pulping Plant near mango growing region  Marketing Feasibility o Select target market (Regional, National (Domestic), Overseas (Export) o Need of market o Demand supply gap o Major Competitors o Current Selling prices Check Feasibility vijaychole@gmail.com
  • 40.  Technical Feasibility • What plant and machinery required for production • Whether plant and machinery available in locally or needs to be imported • Whether product is technically feasible • Whether technology is already commercialized • Decide on production capacity Check Feasibility vijaychole@gmail.com
  • 41.  Financial Viability • Work out of preliminary cost of project • Means of Finance • Work out cost of production • Work out financial projections Check Feasibility vijaychole@gmail.com
  • 42. Sr.No. COST OF PROJECT Rs.(lakhs) 1 Land development and repairing 10.00 2 Building (Civil & Structural Work) 300.00 3 Machinery & Equipments 339.83 4 Furniture & Fixtures 5.00 5 QC Lab 15.00 6 Computer, UPS 3.00 7 Preliminary & Preoperative Expenses 26.51 9 Interest during construction 69.91 10 Margin for Working Capital 19.80 Total Cost of Project 789.06 Cost of Project vijaychole@gmail.com
  • 43. Sr. No. MEANS OF FINANCE Rs.(lacs) 1 Promoters Contribution 25% 197.26 2 Term Loan From Bank 391.79 3 Government Grant-in-aid or subsidy 200.00 Total Means of Finance 789.06 Means of Finance vijaychole@gmail.com
  • 44. Product Cost Direct Cost (Variable Cost) Indirect Cost (Fixed Cost) vijaychole@gmail.com
  • 45.  Cost of Ingredients  Cost of Packaging Material  Cost of Manpower  Cost of Utilities  Cost of Consumables  Cost of Quality/Lab Direct Cost vijaychole@gmail.com
  • 46.  Salary of Staff (Production, Quality, Account, Sales, Purchase, Store, Admin, HR)  Transportation Cost (Transport Cost of RM, PM, FG)  Sales and Marketing Cost (Advertisement, promotions, Schemes, Travel cost of sales employees, Incentives/Commissions etc.)  Storage Cost  Admin Cost  Cost of Capital/Equity  Interest on Loan Indirect Cost vijaychole@gmail.com
  • 47. Instant Flavored Oats (Product Costing) Exercise Batch Size (Kg) 1 Sr. No. Raw Material % Amount in Kg Rs./Kg 1 Cut Oats( Instant oats ) 20.00 0.200 85 17.00 2 Rolled Oats 25.00 0.250 85 21.25 3 DRY Fruits 12.00 0.120 550 66.00 4 Multigrains 15.00 0.150 100 15.00 5 Butter 2.00 0.020 370 7.40 6 Sugar 19.00 0.190 34 6.46 7 Honey 2.00 0.020 190 3.80 8 Fruit Powder 5.00 0.050 200 10.00 100.00 1.000 146.9 vijaychole@gmail.com
  • 48. Sr.No. Number of Packets in 1Kg (50gm/packet) 20.00 Per Kg/Cost 1 RM Costing Per Packet 7.35 146.910 2 Cup Costing 1.60 32.000 3 Foil Costing 0.70 14.000 4 Label Costing 1.50 30.000 5 Secondary Packaging Costing 1.80 36.000 6 Tertiary Packaging 2.00 40.000 7 Processing and Labour 3.00 60.000 8 Product Costing 17.95 358.910 9 Margin @20% 21.53 430.692 10 Transport 2.50 50.000 11 Ex Factory 24.03 480.692 12 SS Margin 6% 25.48 509.534 13 Distributor Margin 12% 28.53 570.678 14 Retailer Margin 25% 35.67 713.347 GST 12% 39.95 798.949 MRP 40 Product Costing-II vijaychole@gmail.com
  • 49.  Plant Location • Raw material based industries should be located near crop production region (Sugar, Pulping Plants) • Processed products like Biscuits, Noodles etc. should be located near to Market • Availability of water (Assess requirement of water for production) • Availability of Electricity • Availability of skilled manpower • Access to state and national highways or transportation Selection of site vijaychole@gmail.com
  • 50.  Check Market Demand/How much you can sale  Check whether product is seasonal or round the year  Check process time  Cost of Machinery for selected capacity and Investment in Fixed Capital How to finalize capacity vijaychole@gmail.com
  • 51.  Develop product in lab  Arrange pilot scale trials  Launch MVP (Minimum Viable Product)  Get market feedback before investing in Fixed Capital  Cost of Packaging material design, its MOQ, cost of lab, cost of operation till break even point Don’t miss these things vijaychole@gmail.com
  • 52.  Ensure Product Quality in all aspects  Ensure Transportation Time and Damage  Ensure Shelf Life  Terms of supply  Taxation on product  Payment Terms While Launching Product vijaychole@gmail.com
  • 53.  FSSAI License (Food Safety)  Register Entity (Proprietor/Partnership/Pvt. Ltd.  Udyog adhaar (MSME Registration)  NA for land use (Change of land use)  MPCB (Consent to Establish and Consent to Operate)  Shop Act  Building Plan Approval  Fire NoC  Registration under factories act  Registration under PF and labour act and minimum wages act  GST Registration FEW Statutory Permissions for Starting the Business vijaychole@gmail.com
  • 54.  MoFPI (Ministry of Food Processing Industry)  NABARD (National Bank for Agriculture and Rural Development)  National Horticulture Board  SFAC (Small Farmers Agribusiness Consortium)  MSME (Ministry of Micro, Small & Medium Enterprises) Department of Industries, MSME Scheme, Cluster Scheme, PMEGP Scheme- 35 % subsidy  State/Central Agriculture Ministries  Khadi Village Industries Commission ( KVIC)  APEDA  FICSI Food Industry Capacity & Skill Initiative Resource Agencies vijaychole@gmail.com
  • 55. Value Added /Fresh Packed Produce as an Opportunity  Tremendous opportunity for fresh, cleaned/graded whole/ cut, packed Table, cooking purpose Fruits n Vegetables. e.g Tokri.com, Go4fresh.com, bigbasket.com, Star Bazar, Malls  Fresh/ Frozen for domestic market, institutional market and export  Requirements- Traceability, Freshness, adequate and attractive packaging  Opportunities in infrastructure set up including cold storage, reefer vans, warehousing i.e. Aggregation and supply chain management/ Backward integration. vijaychole@gmail.com
  • 56. Value Addition and Food Processing  Few Examples  Project segment -20 lakhs.xlsx  The Estimates are rough and for broader understanding. Actual Project Costs may differ as per various factors viz: Area, Capacity, Market to be tapped, nearness to the market, skill set of the entrepreneur etc. vijaychole@gmail.com
  • 57. The Most Lucrative Investment Destination for Agro food-processing in India
  • 58. Farm to Fork Concept vijaychole@gmail.com
  • 59. Objective of Mega Food Park Scheme  The primary objective of the MFPS is to provide modern infrastructure facilities for the food processing along the value chain from the farm to the market.  It will include creation of processing infrastructure near the farm, transportation, logistics and centralized processing centers and infrastructure to reach Markets. vijaychole@gmail.com
  • 60. Supply Chain Model –Mega Food Park vijaychole@gmail.com
  • 61. PPC Location Sr.No. Location Commodities available in catchment area District near Catchment Area 1 Narayangaon Maize, Wheat, Chilly/Dry chilly, Garlic, Gram, Groundnut, Tur, Soybean, Onion, Tomato, Brinjal, Cabbage, Carrot, Cauliflower & leafy vegetables, Potato, Ladies finger, Lemon, Guava, Mango, Pomegranate, Sweet lime, Custard Apple, Grapes, Tamarind, Coconut, Cashew Ahmednagar, Pune, Raigad 3 Pandharpur Rice, Maize, Wheat, Urad, Gram, Mango, Banana, Tomato, Chilly, Ladies finger, Onion, Grapes, Mango, Pomegranate, Banana, Turmeric, Ginger, Soybean, Lemon, Papaya, Jawar, Wheat, Bajara, Urid dal, Toor dal, Moong Dal, Chick pea Solapur and Nearby Marathwada region 4 Ajara Maize, Rice, Gram, Chilly, Alphonso Mango, Banana, Tomato, Potato, Carrot, Grapes, Mango, Pomegranate, Guava, Soybean, Lemon, Cashew, Coconut, Custard apple Ratnagiri, Sindhudurg, Kolhapur, Sangli vijaychole@gmail.com
  • 64.  Ideal for Tapping Overseas Markets • Located on well-laid 6-lane Mumbai-Bangalore NH 48 with Independent Approach road • 4.30 -hour access to JNPT, India’s Largest Container Port, and JSW Jaigarh, the first deep-sea, all-weather, 24/7 private port in the state.  Ideal For Tapping Local Markets • Overnight road access to 400 million Indians having per-capita-income higher than national average. • 9 kms from railway line, giving easy access to additional 20% of India’s market of processed food. • Hence over half of India’s processed food market is within reach. • Includes Goa, Tamil Nadu, Telangana, Kerala, Gujarat, Maharashtra, Madhya Pradesh, Andhrapradesh etc. Strategic Location: Easy Market Access vijaychole@gmail.com
  • 65.  We have set up 4 primary food processing centers (PPC) and more than 10 CCs in catchment of 6-7 Districts Which gives you almost all types of Agri and Horticultural produce.  Catchment area has diversified agro-climate, and is well-irrigated, ensuring uninterrupted, round-the-year supply of agricultural produce for processing.   These PPCs will be equipped with world-class facilities like cold storages, warehouses, grading & sorting capability, reefer vans, mobile collection centers and basic pre-processing facilities  Raw-material catchment area. • Sugarcane (Maharashtra is India’s Largest Sugar Producer) • Mango, Grape, Pomegranate, Strawberry, Cashew, Jackfruit, Custard Apple, Sapota, Banana, Guava, Wild Berries, Orange, Lemon. • Rice, Wheat, Bajra, Jowar, Soyabean, Pulses and Cereals. • Tomato, Onion, Potato, Sweet Corn, Baby Corn and many others. • Chillies, Turmeric, Ginger, Garlic, Black Pepper, Cardamom Rich Bio-Diversity of Agri Produce and PPCs vijaychole@gmail.com
  • 66. Concept to Commissioning services to all members vijaychole@gmail.com
  • 67. Government Benefits and Schemes Ministry of Food Processing has initiated Sampada Scheme which will provide grant in aid upto 35% of the elgible Project Cost maximum upto Rs.5.00 cr National Bank for Agriculture and Rural Development (NABARD) - Fund for Construction, Expansion, Modernization of Cold Storages and Storages for Horticulture Produce Food processing units - Subsidized rate of Interest Benefit Under New Industrial Policy 2019 (70 % Reimbursement of the capital cost of the project over period of 8-10 years) - GST reimbursement - Industrial Promotion Subsidy - Interest Subsidy - Exemption from Electricity Duty - Exemption from Stamp Duty - Power Tariff Subsidy - Incentives for Strengthening MSMEs and LSI Chief Ministers Food Processing Scheme Subsidy Upto Rs. 50 Lakhs vijaychole@gmail.com
  • 68.  Complete Plug-and-Play Layout.  Warehouse with racking system, pulping line with aseptic packing, ripening chambers, hi-tech cold storage, fork lift, reefer vans, pack house, etc. on a pay-per-use basis.  Security, Water, Electricity, ETP, STP, WTP and Sewer arrangement in place.  Promise of commercial prosperity in Satara Mega Food Park backed by strength of BVG Group. Common Infrastructure and Facilities vijaychole@gmail.com
  • 69. ADMINISTRATION BUILDING RESIDENTIAL QUARTERS TRAINING CENTER STANDARD FACTORY DESIGN - Residential Quarters - Training Halls - Hostel - Auditorium - Library - Medical Centre - Laundry and Housekeeping Services - Administration Office - Canteen Shared Unique Facilities vijaychole@gmail.com
  • 77.  BVG India Ltd is India’s Largest Integrated Services Company with 70000+ employees, 750+ customers including Rashtrapati Bhavan, PM’s Home & Office, Supreme Court, Volkswagen, Mercedes Benz, Accenture, ITC, and many others with annual turnover of more than USD 300 Million  We have deep expertise in running operations of factories, industries, hospitals.  20,000 (out of 70000) colleagues of BVG Group family come from in and around Satara. Promoters of Satara Mega Food Park are also natives of Satara.  We have access over 1,50,000 acres of farmland, among our family members. Strong Group Company Support from BVG vijaychole@gmail.com
  • 78.  Excellent working relationships with Government at all levels- Galli to Delhi  Excellent support in all business areas including plant set-up, day to day operations, administration, human resources, power, industrial relations, waste management, logistics, etc.  BVG can support from concept to commissioning to running day- to-day operations for food park occupants , factories  BVG is also open to business partnerships, including JVs. Strong Service Support from BVG vijaychole@gmail.com
  • 79.  Apart from Above if the investor has sizeable investment to be made in Satara Food Park, we can assist / get customized benefits from the State government for the venture. No Park/ Industrial cluster will offer this  BVG Life Sciences Ltd makes 100% herbal, zero-residue, crop care products, giving strong farmer connect. Talent pool of our company can provide all ground-level support.  BVG’s Group can procure raw material, undertake contract farming for food park occupants.  We can grow all Agri-Horti produce like cereals, pulses, fruits, vegetables and spices for dedicated and captive consumption. Strong Support for Captive Production vijaychole@gmail.com
  • 80.  Livestock and Crop Registry India Ltd has pioneered DNA-based animal & geo-tagged farm-registration system, further helping us establish strong connections with farmers.  BVG Clean Energy Ltd develops, installs and commissions clean energy projects. We are in process of setting up a 200 MW hybrid solar plant. We can help you establish captive power projects, with prospects of tax rebates.  OOH Media (India) Pvt. Ltd has 7000+ outdoor screens, with a strong brand strategy team. We can help you in developing as well as marketing your brand. Strong Group Company Support… contd vijaychole@gmail.com
  • 81.  It is our business to help you grow and prosper your business… We take care of your Non core activities and business so that you focus on your core business  We promise you commercial prosperity in Satara Food Park Pvt. Ltd.  25 years of experience of BVG Group and 70,000 plus family members of BVG Group is delighted to be at your service to help all of us succeed.  We welcome you to Satara Mega Food Park Pvt. Ltd….. Promoter’s Promise… vijaychole@gmail.com