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Madhya Pradesh Means Business

VIEWS: 166 PAGES: 20

									Madhya Pradesh: Means Business

Forest, Environment & Herbal




 1
 Overview
                Overview               Madhya Pradesh (MP) – State that means business

                                        MP is the second largest State in the Country stretching over 308,000 sq kms.
                                        The State is blessed with large mineral resources of coal, diamond, limestone, methane etc.
                                        MP is among the top 4 states of the Country for industrial investments.



         Economic Snapshot             Madhya Pradesh is emerging as a key growth center for the Country

                                                                                                                    Per capita GSDP               USD 369**
                                        Gross state domestic product (GSDP)            USD 23,983.63 Mn**
                                                                                                                    Manufacturing sector          USD 8.5 bn**
                                        Average growth rate                            5.5% per annum
                                                                                                                     (Registered & Unregistered)




            Advantage MP               Madhya Pradesh has one of the upcoming industrial base in India

                                                                                               Total electricity generation capacity                6,449.25 MW*
                                        The State is centrally located
                                                                                               India‟s first greenfield SEZ                         Indore SEZ
                                        Investor friendly Government policies
                                                                                               Industrial Centers                                   8



                  Power                Electricity generation capacity at present is 6,449.25 MW and estimated to rise to a surplus in 2008-09

                                        MP is rich in low grade coal suitable for power generation.
                                        Potential of hydro-energy generation.
                                        Installed power capacity (MP‟s share)
                                                Hydel Power Generation: 852.7 MW*
                                                Thermal Power Generation: 2,147.5 MW*


     2
*Ministry of Power (powermin.nic.in)     **Source: Indiastat.com (as on 23 Feb 2006)
 Enabling Infrastructure
                                                                                                                                   • The State is well connected with the rest




                                                                                  RAILWAY NETWORK
                                                                                                                                     of India with almost 425 trains passing
         MP IS CENTRALLY LOCATED AND WELL
                                                                                                                                     through the State on a daily basis. Of
     CONNECTED WITH ALL MAJOR CITIES IN INDIA
                                                                                                                                     these 175 trains pass through the State

                                                                                                                                     capital Bhopal alone.




                                                                                                                                   • 25 airstrips.**
                                                                                                                                   • Convenient air links from key Indian
                                                                                                             GWALIOR                 cities like Delhi & Mumbai to Bhopal,
                                                                                                                                     Jabalpur,     Gwalior,  Indore   and




                                                                                  AIRPORTS
                                                                                                                                     Khajuraho.
                                                                                                                       KHAJURAHO   • 5 operational airports.
                                                                                                                                   • Indore airport has the capability of
                                                                                                    INDORE   BHOPAL
                                                                                                                                     handling international cargo.
                                                                                                                       JABALPUR
                                                                                                                                   • An international airport proposed in
                                                                                                                                     Bhopal.



                                                                                                                                   • The total length of roads spanning MP is
                                                                                                                                     67,600 kms.**
                                                                                                                                   • National highways of 5,200 kms run
                                                                                  ROAD NETWORK




                                                                                                                                     through the State.*
                                                                                                                                   • 18 National highways including trunk
                                                                                                                                     routes of Delhi-Mumbai, Delhi-Chennai,
                                                                                                                                     Delhi-Bangalore, Delhi- Hyderabad.
                                                                                                                                   • The total length of State highways in the
                                                                                                                                     State is 9,885 kms.**
                                                                                                                                   • Convenient linkages to western ports i.e.
                                                                                                                                     Kandla Port, Jawahar Nehru Port Trust.



    3
*Source: Department of Road Transport & Shipping (morth.nic.in)   **Source: www.destinationmadhyapradesh.com
 Madhya Pradesh: A Preferred Investment Destination
31% of the State under forest                Over 2,000 kms of roads          India’s     1st     operational   Offers diverse tourists destinations
cover with a largely unexploited             being     developed     with     Greenfield SEZ at Indore          catering to various segments of
species    of   rare,   valuable             Private Partnership (BOT)                                          tourism such as religious (Bhojpur),
medicinal- herbal plants                                                                                        eco/ adventure (Panchmari), heritage
                                                                                                                (Sanchi, Khajuraho) tourism etc.



Over 100 agricultural farms with                                                                                          Third largest producer    of
an area of over 20,000 acres is                                                                                           cement in India*
available on lease to investor


Favourable       climatic                                                                                                     Various blocks available
conditions for cotton                                                                                                         for power, cement, iron
and over 40,000 power-                                                                                                        and steel units
looms are driving the
textile industry



Largest producer of pulses                                                                                                 Over    18,000    technical
and oilseeds in the Country                                                                                                graduates    and    230,000
(~75%       of    soyabean                                                                                                 graduates add to workforce
production)                                                                                                                each year



              Availability of coal and natural gas                Over 144 BCM of coal bed               12 blocks with reserves
              (G.A.I.L pipeline) along with support               methane reserves available             totalling 2,585 million tons
              from Government to make investment                                                         of coal has been identified
              in Thermal Power Plants lucrative


    4
*Source: www.mpsidc.org & Brochure: MP Means Business
 MP: The Right Place with the Right Environment
                                                                                                                               Savings in Office Space Rates
                                                                                                                      (A comparison of rates in Central Business Districts)
  Fastest mover* in overall                                DESTINATION MADHYA PRADESH
                                                                                                                                                         Mum bai
  performance among the                                                                                                                                 150

                                                                                                                                Ahem adabad                               Delhi
  big States in the Country.                                                                                                                            100



                                                                                                                                                         50
                                                                                                                              Bhopal                                                Bangalore

                                                                                                                                                            0


  Fastest mover in agriculture
                                                                                                                                 Indore                                           Chennai
                                                                           Delhi
                                                                         (740 Kms)
                                                                       (MPV - 789.5)                                                      Hyderabad                Pune


   Fastest mover in
                                                    Ahmedabad                                                         Bhopal and Indore have substantial cost
   infrastructure development.                       (570 Kms)
                                                                                                                      advantages, even when compared to other Tier
                                                   (MPV - 220.63)
                                                                                                                      III and IV cities.

                                                                                                                                       Savings in Land Cost
   Ranks 2nd in terms of                                                                               Kolkata
                                                                                                     (1350 Kms)                                                       (Estimated Values for Multi-
   governance.                                     Mumbai                                          (MPV - 613.19)                                Vishakapatnam                    product SEZs)
                                                  (780 Kms)                                                                                       100%
                                                 (MPV - 1000)  Pune
                                                             (800 Kms)                                                                                80%
                                                           (MPV - 206.51)     Hyderabad                                                               60%
                                                                               (840 Kms)            Key Markets              Indore                                               Chennai
                                                                                                                                                      40%
  Ranks 3rd in terms of law &                                                (MPV - 257.9)          (Distance From
                                                                                                    Bhopal)                                           20%
  order                                                                           Chennai           MPV – Market                                       0%
                                                               Bangalore        (1430 Kms)          Potential Value
                                                              (1400 Kms)      (MPV - 362.84)
                                                            (MPV - 254.52)
                                                                                                                              Jaipur                                              Greater Noida

  Cost of skilled labour is USD
  2.4/day vis-a-vis USD 3.5 –
  USD 4.0/day in metros                                                                                                                               Chandigarh

                                                                                                                      The cost of land is one of the lowest in the Country.
                                                     MP is centrally located. The State is at an easy distance from
                                                                                                                      Even central hubs such as Indore and Bhopal fare
* Fastest mover is the State where the rate of               all the key consumer markets in the Country.             well against other cities in terms of low land cost.
improvement between 2003 & 2006 was greater
than that between 1991 & 2003


     5
**Source: India Today (September „06 Issue)      Source: (Reference: RK Swamy)         - Distances rounded off
Industrial Policy: Catalyst for the Investments
The Government of MP has devised an investor friendly industrial policy,
                                                                                                                                         SPECIAL INCENTIVES
which is aimed at achieving global competitiveness. The policy emphasizes
                                                                                                         • Special package for Mega Projects on project basis by apex level
on industrial growth in the state through adopting cluster approach,
                                                                                                           investment promotion empowered committee headed by the Chief
establishing specialized infrastructure and offering favourable incentives.                                Minister.
                                                                                                         • Industrial investment promotion assistance – 50% to 75% of commercial
The main thrust of this policy is:                                                                         tax for 3-10 years
                                                                                                         • Concessional registration charges and stamp duty exemption for
 • Establishment of a Madhya Pradesh Trade                     and Investment                              Term Loans.
   Facilitation Corporation which would take                   decisions about                           • Interest subsidy on term loan for 5 – years @ 3% to 5%.
     rationalization of taxes, facilities of mega projects and other related                             • For thrust sector industries, 25% capital subsidy would be provided
                                                                                                           limiting up to a maximum of USD 56,000
     matters.
                                                                                                         • Land on 75% concessive rate for Mega Projects limited to USD 4.4
 • Enacting an Industrial Facilitation Act and to change the rules of                                      million.
                                                                                                         • Entry tax exemption for 5 years.
   business with a view to make single window system decisive and result
                                                                                                         • 5 years electricity duty exemption on captive power generation
   oriented.
                                                                                                         • 15% capital subsidy to SSI up to USD 33,000 in backward areas
 • Developing infrastructure for supporting the identified industrial                                    • Infrastructure grant up to USD 0.22 million crore for developing private
                                                                                                           sector industrial parks
   clusters
                                                                                                         • Partial reimbursement for Project report, ISO Certification, Patent and
                                                                                                           Technology Purchase cost
 • Reviving closed down/ sick industrial units by granting special packages.
 • Attractive incentive schemes.

                                        CLUSTER APPROACH                                                               Crystal IT Park         Indore




                                                                                          SPECIALIZED INFRASTRUCTURE
                                        • Indore – Pharmaceutical, Textile,        Food                                                        Mandsaur, Khargone, Chhindwara,
                                          Processing, IT, Auto Components                                              Food Parks
                                                                                                                                               Hoshagabad, Mandla and Bhind
                                        • Bhopal – Engineering, Biotechnology, Herbal,
                                          IT, Food Processing                                                          Stone Park              Katni

                                        • Jabalpur – Garment, Mineral, Forest & Herbal,                                Herbal Park             Rewa
                                          Food Processing
                                                                                                                       Granite Park            Chhatarpur
                                        • Gwalior – Electronics, IT, FMCG, Engineering,
                                          Food Processing                                                              Life Sciences Project   Bhopal
                                        • Rewa – Refractories, Lime Stone, Forest Based
                                                                                                                       Apparel Park            Indore (SEZ)
                                        • Sagar – Mineral Processing
                                                                                                                       Gems & Jewellery Park   Indore


 6
    Doing Business Made Easy Through MPAKVN
              In a bid to build a competitive environment; industries and their ancillaries would be promoted in clusters based on the availability of raw materials,
              skilled labour and market potential. Under this Industrial Policy through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs)
              scheme, the State Government, has identified industrial clusters. Many of the industrial giants have their establishments in these areas, however 44% of
              developed area is still untapped and open for investment.

               Area Developed: 1,330 Hectares                           Area Developed: 2,262 Hectares                              Area Developed: 790 Hectares                      Area Developed: 273 Hectares

               Allotted: 618 Hectares                                   Allotted: 800 Hectares                                      Allotted: 125 Hectares                            Allotted: 115 Hectares




                                                                                                                    JABALPUR AKVN
                                                         GWALIOR AKVN
BHOPAL AKVN




                                                                                                                                                                          REWA AKVN
               Units established: 286                                   Units established: 326
                                                                                                                                    Units established: 52                             Units established: 121
               Major Groups:HEG, Crompton                               Major Groups: JK, Surya Roshini,
                                                                                                                                    Major Groups: Raymond, Hindustan                  Major Groups: Birla, Jaypee
               Greaves, P&G, Godrej, Lupin, IFB,                        Godrej, Grasim, Cadbury, Hotline,
                                                                                                                                    Petroleum, PBM, Ayur
               Oswal, Nahar                                             Crompton Greaves                                                                                              Special Infrastructure: Integrated

               Special Infrastructure: ICD, Food                        Special Infrastructure: ICD, Food                           Special Infrastructure: Stone Park,               infrastructure development centres

               Park                                                     Park                                                        Food Park                                         (IIDC)




               Area Developed: 2,492 Hectares
                                                                                                        Malanpur, Malanpur
               Allotted: 1431 Hectares                                                                  Phase II, Banmore,
                                                                                                        Chainpura,
                                                                                                        Siddhgawan,
               Units established: 575                                                                   Pratappura
INDORE AKVN




                                                                                                                                                                                          Total developed           7,147
               Major Groups: Tata, Ranbaxy, Eicher,                                                                                                   Rewa, Waidhan                             area               Hectares

               Bridgestone, Hindustan Motors, Kinetic,                                                                                                                                                              3,089
                                                                                                                                                                                         Total allotted area
               SRF, S Kumars, Gajra, Nicholas Piramal,                                                    Mandideep,                                                                                               Hectares
                                                                                                          Pillukhedi,
               Indorama, IPCA, Bhilwara                                                                Mandideep Phase II                                                                      Total units
                                                                                                                                         Borgaon, Maneri,                                                           1,360
                                                                                                                                                                                               established
               Special Infrastructure: SEZ, Crystal IT                             Pithampur, Kheda,                                     Purena
                                                                                   Dewas, Maksi,
               Park, Food Park, Apparel Park                                       Megh Nagar                                                                                             Growth centres             19




              7
                                                                                                                                                                                                               Source: MPSIDC
                               Sector Profile




Forest, Environment & Herbal
Sector Profile : Forests, Environment & Herbal

     MP: Forest Capital of India

     MP : Forest Snapshot

     Herbal Market Scenario

     MP : Herbal Potential

     Concessions and Facilities for Herbal Industry

     Investment Destination - Opportunities in Herbal

     Investment Destination - Opportunities in Forest & Environment

     MP: An Investment Destination

     Way Forward




 9
MP: Forest Capital of India
                                                                                                    Forest Map of MP
 Madhya Pradesh has a forest area of 94689.38 sq. km which

     constitutes nearly 31% area of the state. With a share of nearly 13% of

     the total forest area of the country, MP has the largest forest covered

     area among all the States in India.

 The state has a diverse range of forest. The four key types are Tropical

     Moist, Tropical Dry, Tropical Thorn, Subtropical broadleaved Hill forest.

 There are three key forest formations, namely Teak Forest, Sal Forest

     and Miscellaneous Forests. Further, Bamboo bearing areas are widely

     distributed in the State.

 Forest based industries are key contributor to the State‟s economy and
                                                                                           Classification of MP land Mass
     provide employment to a large part of the population.
                                                                                                MP
                                                                                                                       Reserved 65.36%
 In 2004-05 forests and logging contribute 2.1% to the State GDP.
                                                                                                       Forest
                                                                                                                       Protected 32.84%
                                                                                                       31%
 The total growing stock (volume of timber / wood) in MP is 50 mn cu. m                      Non
                                                                                              Forest
                                                                                                                       Unclassified 1.7%

                                                                                              69%
     valued worth USD 55.5 bn.                                                     MP
                                                                                   9.38%


  Forests are valuable sources of various medicinal herbs and aromatic plants    India
                                                                                 90.62%
  and are sole source of woody and non woody products such as timber, gums
  and resins etc.


10
MP: Forests Snapshot
 • MP‟s forest reserves are a rich source of Timber, Fuel wood and                                                      Production of Timber, Fuel wood and Bamboo
     Bamboo. They are also a key source of minor forests products such
                                                                                                                                                                    Timber
     as Tendu, Harra, Sal Seed and Gums.                                                                                 5
                                                                                                                                                                    Fuel wood
                                                                                                                                                                                                2.5
                                                                                                                        4.5
                                                                                                                                                                    Bamboo
                                                                                                                         4                                                                      2
 • MP is the largest producer of Tendu leaves in the country which is
                                                                                                                        3.5

     the key raw material used for the production of “Biddi”. The average




                                                                                                                                                                                                      Lakh nt
                                                                                                                         3                                                                      1.5




                                                                                                            Lakh Cu M
                                                                                                                        2.5
     annual production of Tendu Leaves in the state is around 2.5 mn                                                     2                                                                      1
                                                                                                                        1.5
     standard bags*.                                                                                                     1                                                                      0.5
                                                                                                                        0.5
 • MP accounts for nearly 25% of all the Tendu Leaves produced in India                                                  0                                                                      0
                                                                                                                              2001-02      2002-03      2003-04   2004-05    2005-2006 (till
                                                                                                                                                                                 5/06)
                                         Key Forest Products

 Woody Products          Nationalised Minor Forest Products    Non-Nationalised Minor Forest Products
                                                                                                                              Revenue From Sale of Forest Products
 Timber                 Tendu Patta                          Harra, All other gums, Satawar, Kalmegh,
 Small Timber           Sal Seeds                            Giloe, Achar, Arjun Bark, Aonla, Gudnar,
                                                               Chiratia, Nagarmocha, Beheda, Bael,                      125   US$ Mn                                  122
 Fuel Wood               Kullu Gum
                                                               Bhilwa, Mahua, Van, Tulsi, (more than 155)
 Bamboo                                                                                                                120

                                        Key Tree Species                                                                115         113
 Teak ( Tectona grandis)                               Salai (Boswellia serrata)                                                                                                               109
                                                                                                                        110                           107
 Sal (Shorea robusta)                                  Saja (Terminalia)
 Bija (Pterocaropus marsupium)                         Haldu (Adina cordifolia)                                         105
 Khair (Acacia catechu)                                Lendia (Lagerstroemia parviflora)
                                                                                                                        100

 Tinsa (Ougeinia Ogeinensis)                                                                                            95
                                                                                                                                 2002-03             2003-04       2004-05               2005-06
 *One standard bag of Tendu Leaves in Madhya Pradesh means 1000 bundles of 50 leaves each.




11
Herbal Market Scenario
 As per the estimates of the WHO, nearly 80% of the world‟s population depends on herbal             Global Demand of Medicinal Plant
     medicine for their primary health care requirements.
                                                                                                                            USD 5 Tn
 Global trade in medicinal plants is over USD 60bn in 2004 with an annual growth rate of
     15%.

    India is rapidly emerging as a key player for supplying medicinal plants to the world.            USD 60 bn

 Estimated total value of products from Ayurvedic production in India is nearly USD 1 bn.

 Exports of Ayurvedic medicines have reached a value of USD 100 million a year. Of the
     total exports, about 60% is crude herbs, 30% finished product shipped abroad for direct               2004               2050
     sales to consumers, and the remaining 10% is partially prepared products to be finished in                          Source: WHO Estimates

     the foreign countries.
                                                                                                       Break up of Ayurvedic Export Market
 The Ayurvedic industry in India is dominated by around 30 companies. Key suppliers like
                                                                                                      Crude herbs
     Dabur, Baidyanath, and Zandu, together contribute about 85% of India's domestic                     60%                             Finished
                                                                                                                                         Products
                                                                                                                                           30%
     market.    Charak       Pharmaceuticals,   Vicco   Laboratories,   Emami     Group,      Aimil
     Pharmaceuticals Ltd, Viswakeerthy Ayurvedic Pharmacy etc are few of the well-known
     names in this sector.                                                                                                       Partially
                                                                                                                                 Prepared
                                                                                                                                   10%
 Of late, leading players in the FMCG segment like the Hindustan Lever Limited (HLL) are
     increasing their focus on Ayurveda.
                                                                                                      With demand of herbal products
 Contract farming of medicinal plant species which are in demand in the foreign market is            increasing   globally,   the   market
                                                                                                      presents     substantial     business
     seen as the key growth driver of the domestic herbal industry.
                                                                                                      opportunities for herbal companies in
                                                                                                      India.


12
MP: Herbal Potential
 With 11 Agro-climatic zones out of the total 16 in the country, MP is well             Estimated Production Potential of key Medicinal Plants
     suited for cultivation of a large number of Medicinal and Aromatic plants          isabgol

     (MAPs).                                                                       Safed Musli                                            1000                           2000
                                                                                           Bel                                            1000
 The production of MAP‟s in the State in 2004-05 was 20,000 tonnes                     Isabgol                          500
                                                                                 Ashwaganda                              500
     and is estimated to rise to 40,000 tonnes by the year 2009.
                                                                                     Aloe Vera               200
 MP’s share in the national production of MAPs was 6.25% in 2004-05                   Kalmegh               200
                                                                                 Chandrashur                 200
     and is expected to rise to 8.63% till 2009.                                 Essential Oils       100
                                                                                                      100
 30% of the demand of Indian herbal industry is met by the herbal                     Keokand
                                                                                     Shatawar         100
     collections centers of Madhya Pradesh.                                               Giloy       50
                                                                                  Nagarmotha          50
 MP is the natural habitat for over 50% of the herbs used in the                      Gudmar         50
     pharmaceutical industry and is the key source of raw material to various    Sarpagandha          50
                                                                                          Bach        50
     herbal processing units across the country. The Government is keen to
                                                                                                  0    200         400   600   800     1000  1200   1400   1600   1800   2000
     develop MP as the key processing center for herbal products.                                                                       Tonnes




                       MP’s Rising Share in National Production of MAPs                                        Increasing Annual Production of MAPs in MP
                                                                                       45000
             10.00%
                                                           8.63%                       40000
               9.00%
               8.00%                                                                   35000

               7.00%                        6.25%                                      30000
                            5.76%
               6.00%                                                                   25000
                                                                                  MT
               5.00%                                                                   20000
               4.00%
                                                                                       15000
               3.00%
                                                                                       10000
               2.00%
               1.00%                                                                    5000

               0.00%                                                                         0
                          1999-2000       2004-2005       2008-2009                                        1999-2000                 2004-2005             2008-2009



13
Concessions and Facilities for Herbal Industry
To facilitate the development of herbal industry, the Government of MP
                                                                                                       Capital Investment Subsidy
extends various concessions and facilities to industries.
                                                                                Category of district         % of subsidy on fixed           Upper limit of subsidy
  The key concessions offers are capital investment subsidy, interest                                       Investment                      (USD)
   subsidy, concessional land rates, industrial investment promotion            Backward A                   15%                             11,000
   assistance and entry tax exemption etc.
                                                                                Backward B                   15%                             22,000
  Exemption from electricity duty for 5 years                                  Backward C                   15%                             33,000

  Exemption from stamp duty/registration charges                               Special capital subsidy at 25%. To a maximum of USD 0.02-0.05 as per
                                                                                category, if the investment is more than USD 0.11mn
  New industries are exempted from paying entry tax for five years from
   the date of first purchase of raw material
                                                                                                              Interest Subsidy
  Partial reimbursement of expenditure incurred on quality certifications,
                                                                                Category of district    Duration          Interest             Upper limit of subsidy
   ISO-9000, patent filing, BIS etc by the industries in the state.                                     (Years)           Subsidy              (USD)

  Units with fixed capital investment of USD 2.2 million and above would       Backward A              5                 3%                   22,000
   be treated as mega projects. 5 to 20 acres of land would be allotted to      Backward B              6                 4%                   33,000
   such units at a concessional rate of 25% of the stipulated rate. Further
                                                                                Backward C              7                 5%                   44,000
   all such mega projects shall be eligible for special incentive package on
   case to case basis                                                           No Industries Blocks    7                 5%                   44,000

  An industrial investment promotion assistance equivalent to 50%
   amount of Commercial tax and Central Sales Tax (excluding                                Industrial Investment Promotion Assistance
   Commercial Tax on the purchase of raw materials) deposited by the unit       Category of district        Minimum eligible fixed capital               Duration
   in the preceding year, would be given to the industry having fixed capital                               investment (USD)                             (Years)
   investment between USD 0.2 million to USD 2.2 million for 3 years in         Advanced                    5.5 million                                  3
   advanced district and for 5 year in backward district. The rate of
   assistance is 75% for investment above USD 2.2 million.                      Backward A                  4.4 million                                  5
                                                                                Backward B                  3.3 million                                  7
 The Government is keen to harness the natural riches of MP and is
                                                                                Backward C                  2.2 million                                  10
 vigorously promoting the development of herbal industry in the State.


 14
Investment Destination- Opportunities in Herbal
• MP is the key supplier of raw material to the herbal industry across the                              Special incentive Package for Herbal Industry
 country. While MP has several success stories in the cultivation and
 collection steps of the value chain; substantial opportunities now exist                         Reimbursement of 50% of the total fees incurred on hiring
                                                                                                   technical consultancy for getting GMP certification. With an upper
 for   entrepreneurs       in     the   post      harvest       process        such      as
                                                                                                   limit of USD 22,000 per project.
 manufacturing/processing, quality testing as well etc.
                                                                                                  For participation in the international trade fairs and exhibitions,
• To promote the growth and development of herbal industries in the                                entrepreneurs of herbal industries will be given financial assistance
 State, the Government of MP has announced a special incentive                                     of 50% on one half of the stall charges.

 package for the herbal industry.                                                                 Registration fees charged by the importing countries for import of
                                                                                                   herbal products will be reimbursed up to a maximum of USD 1100
                                                  Viable Herbal Processing Industrial
                                                          Opportunities in MP
                                                                                                   and air fare to a maximum of USD 1100.

                                               Aloe Vera gel extraction and spray dried           All concessions and facilities that are available to industrial units in
   Key Drivers for Herbal                      powder manufacturing units                          the backward districts will also be extended to units located in the
         Industry
                                               Herbal extraction units                             developed and advanced district such as Indore and Bhopal.
Abundant availability of raw
herbs                                          Fractional Distillation units for essential oil    Relevant provisions of labour laws applicable in Special
                                               production and refining
Abundant cultivable land                                                                           Economic Zones will be applicable for existing and upcoming
                                               Ayurvedic drug formulation units
available                                                                                          herbal parks as well as the herbal and Ayurvedic industries.
Mass scale cultivation of large                Food and vegetable colours and dyes                Stamp duty waiver for Herbal and Ayurvedic industries in case
number of species already
                                               Production of concrete and absolute from            of   change    in   name,    collaboration,   inclusion   of   partners,
initiated                                      flowers
                                                                                                   reorganizations and for amendment in the lease deed for the next 3
Land available for industrial                  Primary processing centers for raw herbs
operations at economic rates                                                                       years and also for entering into agreement with financial institutions
                                               Isabgol dehusking units                             for getting financial assistance.
Single window clearance
system for drug license                        Herbal cosmetics production units                  Small scale pharmaceutical industries will be given priority under
Lack of competition in herbal                  Perfume production units                            store purchase rules
processing
                                                                                                  Fast track clearances for setting up pharmaceutical and herbal
                                               Expeller units for producing Bio-diesel and
                                               Neem oil                                            industries.

 15
Investment Destination- Opportunities in Forests & Environment
  Being the largest producer of Tendu leaves; MP is strategically the most
                                                                                                            Madhya Pradesh is Strategically
  suitable location in the Country for manufacturing/ processing of tobacco
                                                                                                           Placed for Forest Based Products
  based products. The companies located in the State can save substantial
  costs on raw material and transportation by establishing processing units
  for the production of Biddi and related products.
  The forests in the State are a key source of high quality timber yielding
  variety of Teak and Sal which forms the backbone of the furniture industry.                                   Delhi
                                                                                                              (740 Kms)
  Companies can set up the furniture units in the State and leverage
                                                                                                        Jaipur                 Lucknow
  following key location advantages:                                                                  (580 Kms)               (680 Kms)
                                                                                                                       Kanpur
         –   1) Proximity to raw material                                                Ahmedabad                    (600 Kms)
                                                                                          (570 Kms)
                                                                                                                                        Patna
         –   2) Proximity to target markets                                                                                           (910 Kms)
                                                                                      Kandla
         –   3) Proximity of ports for exporting products                             (933)
                                                                                                                                              Kolkata, Haldia
  Given its vast forests landscape and scenic vistas, eco-tourism and                                                Nagpur
                                                                                                                                               (1350 Kms)
                                                                                  Mumbai, JNPT                       (350 Kms)
                                                                                                                                     Bhubaneshwar
  adventure tourism opportunities are abound in MP. The State has nine             (780 Kms)
                                                                                                                                      (1200 Kms)
                                                                                              Pune
                                                                                            (800 Kms)                               Vishakapatnam
  natural parks and 25 sanctuaries, which present an immense potential for
                                                                                                                  Hyderabad         (1310)
                                                                                                                  (840 Kms)
  tourism and hospitality industry to flourish.
  Significant opportunities exists for the development of handicraft industry                                        Chennai
                                                                                                                                          Key Markets
                                                                                                  Bangalore         (1430 Kms)
  specially for the production of Bamboo based goods. Opportunities for                           (1400 Kms)                              (Distance From Bhopal)

  private participation are immense as there is a high demand for handicrafts
                                                                                                                                           Key Ports
  products in the foreign countries as well as in the domestic market. Further,                                                            (Distance From Bhopal)

  companies can leverage the availability of local inexpensive labour with                                                                 Sanctuaries

  high skill sets in production of various forests goods.

               The forests resources of MP provides immense business opportunities for forests based product manufacturing.

 16
Investment Destination- Opportunities in Forests & Environment
  Environment protection and conservation is one of the key concerns of the
                                                                                                                           Tobacco Industry
      State Government. All the envisaged development plans in the state would




                                                                                         Key Investment Opportunities
                                                                                                                           Timber Production
      result in heightened commercial activities which is likely to put severe
                                                                                                                              Paper Pulp
      stress on the State environment.
                                                                                                                             Eco-Tourism
  Due to the rapid industrialization of the State, the effluents discharge from
                                                                                                                           Furniture Industry
      the companies specially chemicals & pharmaceuticals, will be a key
                                                                                                                              Handicrafts
      environmental concern.
                                                                                                                           Bamboo products
  Per capita waste generation in major cities in MP ranges from 0.20 Kg to                                                   Bio-diesel
      0.60 kg. The urban local bodies spends between USD 11 to USD 33 per                                               Solid Waste Management
      ton on solid waste for collection, transportation, treatment and disposal.                                        Recycled Goods Industry

  60-70% of the total amount is spent on collection, 20-30% on transportation
                                                                                      To utilize the large amount of waste land in
      and less than 5% on final disposal. Most of the methods used by the
                                                                                      the State, the Government of MP has drawn
      municipal corporation are unscientific and lack safe disposal techniques.       up plans to convert them into plantation
                                                                                      center.
  The State Government is keen on implementing key environmental                     Paper pulp producing trees would be planted
      protection plants Which includes building up of collection stations for solid   in next 5-7 years over one million hectares of
                                                                                      waste land.
      waste.                                                                          The opportunities for commercial paper
                                                                                      production in the state is pegged at USD 1.5-2
  Significant opportunities exists for the commercial waste management
                                                                                      bn.
      companies in the State both for solid waste management and also for the

      effluent treatment plants.

 17
Way Forward
 The Government is keen to develop MP as the                                                                                       Success Story : Vindhya Herbal
  key processing center for herbal products. The
  natural advantage of the State coupled with
                                                                          In collaboration with the international FMCG major Hindustan Lever Ltd , the
  government initiatives makes MP an ideal
  destination for investment.                                             Government of MP has initiated efforts to promote the herbal industries of the

 The success of “Vindhya herbal” has                                     State. It has launched its proprietary brand “Vindhya Herbal” to market various
  generated ample confidence among the                                    herbal formulations that are being produced in the state. All products are processed
  privates players to invest in the business                              employing current Good Manufacturing Practices.
  opportunities    presented by the herbal
                                                                                                                  Aonla Murabba     Aonla Supari           Aonla Powder         Ashwagandha powder
  industry.




                                                               Key Products Promoted under Vindhya Herbal Brand
                                                                                                                  Aonla Candy       Aonla Aschar           Aonla sherbut        Amaltas powder
 The key opportunities of investments are in
                                                                                                                  Arjun Powder      Apamarg powder         Bael Pulp            Brahmi
  contract farming, contract collection centers,
                                                                                                                  Baichandi         Bhringraj powder       Bavachi              Ayurvedic face packs
  herbal     processing      units,  collaborative
  manufacturing and setting up high quality                                                                       Banjira           Baibidang              Baheda               Bach

  testing laboratories for testing medicinal plants                                                               Bijasar Bark      Bija glass (Tumbler)   Babul Pods Powder    Bhui Aonla Powder
                                                                                                                  powder
  and products.
                                                                                                                  Chiroji ( Achar   Dronpushpi powder      Dhaora Gum           Triphala
                                                                                                                  fruit)
     Contract          Setting Big             Collaborative
     Farming           Processing Units        Manufacturing                                                      Gorakhmundi       Giloy                  Gokharu Powder       Gudmar powder

                                                                                                                  Gulbakavali ark   Honey                  Hadjod powder        Indrajau

                 Government 3-tier Strategy
                                                                                                                  Imli              Kalmegh                Karanj bark powder   Jamun seed powder
                for Development of Medical &                                                                      Keoti Bark        Konch powder           Kamarkas             Kulanjan
                  Aromatic Plants Industry
                                                                                                                  Maha Neem Bark    Nirgundi               Punarnava            Mulethi

                                                                                                                  Palas Flower      Rosha oil              Shatawari pppowder   Safed Musli powder
  MP provides ample opportunities across the
                                                                                                                  Senna             Shankhpushpi powder    Tulsi                Cosmetic oil/ shampoo
  value chain of Herbal Industry


18
Way Forward
                                                                                                          Vijay Herbals &
 MP has been successful in attracting several large                                                      Essential Oils
                                                                                                          Kasturi Herbal




                                                                          Join The Club
 companies in the forest & forest based products segment.                                                 Farm
                                                                                                          Sanwaria Herbal
 By investing in the MP an investor can join the club of                                                 Farm
                                                                                                          Devika Herbal
 companies such as Dabur, HLL, Baidyanath, Lupin, ITC
                                                                                                          Omni
 etc. This truly reflects upon the bio-diversity of the state and                                         Pharmaceuticals
                                                                                                          Gewit Herbal EH
 the investor confidence.

 There are over 32 contract farming companies operating in
 the state and this figure has been rising substantially in the
 recent past.                                                                                                  Key
 The increased production of certain products is the
                                                                                                           Investment
                                                                                                          Opportunities
 indicator of increased activity in the state. For instance, the




                                                                                                                       Forest & Environment
 production of lac has increased from 3,000 quintals in 2003        Opportunity           Key Locations                                       Opportunity   Key Locations
 to 40,000 quintals in 2005.                                                                                                                  Teak & Sal    Chattarpur
                                                                    Lac                   Seoni
                                                                    Processing            Annupur                                             (Furniture




                                                                                                              Herbal
 There is also scope for teak and sal based furniture                                                                                        factory)

 business in the state.                                             Honey                 Sheopur                                             Bamboo        Balaghat
                                                                    Processing            Kalan
 The growth of the sector is likely to continue as a result of                                                                               Jetropa -
                                                                    Wild MAPS             Jabalpur                                            Bio-diesel
 increased demand for derived products of forest produce.                                 Katni                                               Plantations



                                MP is the land of opportunities for Forest & Forest Based Products


19
Connecting Further




     Forest Department MP                               http://www.forest.mp.gov.in

     Madhya Pradesh Minor Forest Produce Co-operative
                                                        www.mfpfederation.com
     Federation

     Center for Entrepreneurship Development            www.cedmapindia.com


     Government of Madhya Pradesh                       http://www.mpgovt.nic.in




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