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Best Business Opportunities in Bangladesh - Identification and Selection of right Project, Thrust areas for Investment, Industry Startup and Entrepreneurship Projects

Bangladesh representing a potential market in itself (and potential access to the much larger South Asian market) Bangladesh also offers considerable potential as a base for labor-intensive manufacturing. Low-cost labour is the factor most often cited by the private as well as the public sector in Bangladesh when asked to name the most attractive features of the country. In addition to its large population and low-cost labour, Bangladesh offers major reserves of natural resources, in particular natural gas.

Bangladesh is a moderate, secular and liberal democracy with immense potentials. It has earned global reputation in poverty alleviation, primary school enrollment, women empowerment, family planning, infant, under-five mortality rate and maternal mortality ratio reduction, lowering number of communicable diseases and child immunization.

Bangladesh is in the process of a transition from a predominantly agrarian economy to an industrial and service economy. The private sector is playing an increasingly active role in the economic life of the country, while the public sector concentrates more on the physical and social infrastructure. Bangladesh has great ambitions that offer great opportunities in the energy, Agriculture, transportation and environmental sectors for the best domestic as well as international enterprises.

Business Sectors and Thrust Areas in Bangladesh

Agriculture Sector

Bangladesh is well known for its progress in human development. The economy of Bangladesh is primarily dependent on agriculture. About 84% of the total population lives in rural areas and are directly or indirectly engaged in a wide range of agricultural activities. Bangladesh has the essential attributes for successful agri-based industries namely rich alluvial soil, a year-round frost-free environment, available water and an abundance of cheap labor. Increased cultivation of vegetables, spices and tropical fruits now grown in Bangladesh could supply raw materials to local agribusiness industries for both domestic and export markets.

Agriculture plays a key role in Bangladesh’s economic growth. Bangladesh’s rural economy, and specifically agriculture, have been powerful drivers of poverty reduction in Bangladesh.

There may be investment opportunities in:

  • Fresh produce production for local and export markets;
  • Production of fertilizers and seeds;
  • Eco-friendly jute production, supported by the jute technology development institute;
  • Aquaculture and Processed fish;
  • Halal foods;
  • Milk and dairy products;
  • Cold storage facilities;
  • Agricultural products for export markets, including herbs, spices, nuts, and pulses;
  • Canned juice and fruits

 

Transportation Sector

Bangladesh's transport and logistics sectors offer immense opportunities for investors, as the country is found most wanting in the area. Improvements in ports, road, rail, and air services are all essential for a country that is in the midst of historic growth.

As of we are a developing country the main development issue is on building the infrastructure to enhance the economic growth as well as achieve the economic freedom. Bangladesh ever since the independence has focused on constructing roads & highways. In last three decades transportation sector & construction of roads has been the top priority of government. Private sector, are ready to invest, in Bangladesh's transport infrastructure and trade logistics, towards Bangladesh's growth. Invest in the country. The government will provide the policy support and security.

Opportunity

  • Replacement and up gradation of old signaling and interlocking system
  • Replacement and up gradation of old signaling and interlocking system.
  • Rehabilitation of old Line.
  • Construction of Railway line from Khulna to Mongla.
  • Procurement of trains for introduction commuter Trains
  • Studies for strengthen/reconstruction of existing Bridges.
  • Construction of missing links in the rail corridor between Bangladesh India border

Transportation sector business is a profitable business. Ever since independence this sector has been dominated by private owners.

 

Power and Energy Sector

Bangladesh has experienced rapidly rising energy consumption over the past two decades. This trend will intensify further in the coming years as economic growth and development efforts accelerate—Bangladesh strives to become a middle-income country by 2021.

Electricity is the major source of power for most of the country's economic activities. Noncommercial energy sources, such as wood fuel, animal waste, and crop residues, are estimated to account for over half of the country's energy consumption. Bangladesh has small reserves of oil and coal, but very large natural gas resources. Commercial energy consumption is mostly natural gas (around 66%), followed by oil, hydropower and coal.

Planned and appropriate use of electricity is fundamental to the economic progress of Bangladesh. There is a huge demand for electricity for all sectors of the economy including agriculture, industry and service sectors. Other than household use of electricity in rural areas, the scale of demand for electricity in agricultural, SMEs and income generating activities is going up.

 

Textile Industry

From spinning to weaving, from knitwear to leisurewear and high street fashions, the textiles and clothing industry is Bangladesh’s biggest export earner. This rapidly growing sector of the Bangladeshi economy offers a unique competitive edge that supports profitable expansion into new strategic markets.

As global demand for cheap clothing rises rapidly, Bangladesh’s position as the second biggest exporter in the world continues to hold strong, which is mainly due to its large population and low labour costs. Bangladeshi manufacturers will be forced to enhance productivity levels in order to maintain their competitive advantage.

The phenomenal growth in the readymade garment (RMG) sector in the last decade created many new factories and employment opportunities. Yet, even with these challenges ahead, as global trade picks up in the coming years, demand for Bangladeshi garments is also expected to increase, thereby prompting much-needed economic growth for the developing state. Enormous investment opportunities exist in this sector. In the RMG industry demand for fabric significantly exceeds local supply and so is currently being met by imports.

The importance of the textile industry in the economy of Bangladesh is very high. The growing trend in the textile and the RMG sector means that Bangladesh is favorably positioned to appeal to foreign investors.

Sector highlights:

  • Low-cost and high-quality products that are produced on time, reliably and very competitively with a skilled work force;
  • A unique regional location for expansion into key Asian and other markets;
  • Privileged trading status with Canada, the EU and Japan;
  • Clusters of companies providing a local supplier base with depth in skilled labour, training, and technical development facilities.

There may be investment opportunities in:

  • Carding Cloth
  • Silk Reeling Unit
  • Jeans, Cotton Casuals & Shirts
  • Implantable Surgical Suture (Biomedical Textile)
  • Acrylic Blanket for Warming Human Coverage Purpose
  • Viscous Rayon
  • Readymade Garments (T-Shirt)
  • Sanitary Napkins
  • Jeans Manufacturing Unit

 

Jute Sector

Jute is a vital sector from economical, agricultural, industrial, and commercial point of view in Bangladesh. Once upon a time jute was called the ‘Golden Fibre’ of Bangladesh. It is one of the cheapest and the strongest of all natural fibers and considered as fibre of the future. Jute is second only to cotton in world's production of textile fibers. The jute trade is centered mainly on Bangladesh and the Indian State of West Bengal. The major producing country of jute is Bangladesh, due to its natural fertile soil. Being a major player in the long history of jute trade and having finest natural fiber, Bangladesh has always had an advantage in raw jute trading. Bangladesh is still the largest producer and exporter of raw jute in the world. After the emergence of Bangladesh as an independent state the contribution of the industry to the nation's GDP and in the field of employment declined (in absolute and relative terms). But Still the jute industry must be said to be playing an important role in the national economy: it provides direct employment to about 150 lakh people even after the closure of 40 per cent of its production capacity, pays over Tk 100.00 crores for insurance and similar amount as cost of internal transport of raw jute, earns about Tk 150.00 crores worth of foreign unchanged and consumes 30 lakhs of raw jute, thereby benefiting millions of jute cultivators.

There may be investment opportunities in:

  • Jute Garments
  • Coir Pith
  • Jute Twine (Jute Rope) & Gunny Bag from Raw Jute
  • Jute Yarn, Jute Sutli & Hessian Cloth Weaving Integrated Unit
  • Jute Shopping Bags
  • Jute Ropes/Sutli
  • Jute Mill (With Spinning & Weaving)
  • Activated Carbon Powder from Jute Sticks


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Our Approach:

• Our research reports broadly cover Indian markets, present analysis, outlook and forecast for a period of five years.

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SOFT DRINK (AERATED WATER)- Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue

Aerated drinks are become part and parcel of the Indian lifestyle. Taste is the main factor which drives the demand of the product. Urban areas report a dramatically high consumption of aerated drinks as compared to rural areas. Be it children, the college kid or the middle aged Indian soft drinks are enjoyed by one and all in the country. Especially after the influx of a number of fast food joints in India soft drinks have gained more popularity. Food like pizzas burgers and French fries go hand in hand with soft drinks. Aerated Beverages is an important sector in the country because it not only contributes to export earnings of the country, but is a revenue driver for other industries such as glass, refrigeration, transport, paper and sugar. Despite several issues that crept up regarding the ingredients used behind the manufacturing of soft drinks the market remained stable. Aerated drinks are enormously popular beverages consisting primarily of carbonated water, sugar, and flavorings. Soft and aerated drinks were considered products for the middle class and the affluent. That segregation is no more valid. Soft and aerated drinks are consumed by all except those who cannot afford to buy any drink. An NCAER study says that 91% soft drink sales are made to the lower, middle and upper middle classes. The soft drink industry has been urging the government to categorize aerated waters (soft drinks) equitably with other consumer products of mass consumption and remove special excise duty. As flavored carbonated beverages gained popularity, manufacturers struggled to find an appropriate name for the drinks. Some suggested marble water, syrup water, and aerated water. The most appealing name, however, was soft drink. The process of dissolving carbon dioxide gas is called carbonation. It results in the formation of carbonic acid (which has the chemical formula H2CO3). Soda water is generally of two kinds, viz. Plain Soda Water (Aerated Soda Water) and Flavored Soda Water (Aerated Beverages). In Plain Soda Water, Carbonic Acid Gas (CO2) & Sodium-by-carbonate solution under pressure is mixed with pure water. Flavored Soda Water contains flavors of lemon, ginger (Masala Soda), milk rose, mango, pineapple, etc. in syrup base and this preparation is also made using carbonic acid gas (CO2) under pressure. Soft drinks constitute the third largest packaged food segment in India after packaged tea and packaged biscuits. But the penetration level of carbonated soft drinks in India is still low compared with other developing markets, an indication for further potential for rapid growth. The 60-bn-rupee soft drink industry is growing now at around 5% annually. In India, Coke and Pepsi have a combined market share of around 95% directly or through franchisees. Campa Cola has a 1% share, and the rest is divided among local players. The market size for bottled water in India has been estimated at 570 US $ million in 2008. With an annual growth rate of 14.5 percent volume sales of bottled water will increase rapidly within the next five years. The market size for juice will grow also dynamically within the next years with an annual growth rate of almost 15 percent. The per capita consumption of soft drinks in India is around 5 to 6 bottles (same as Nepals) compared to Pakistans 17 bottles, Sri Lankas 21, Thailands 73, the Philippines 173 and Mexico 605. According to indiastat.com, the 72-billion rupee soft drink industry is growing at 6 to 7% annually. In India, Coke and Pepsi have a combined market share of around 95% directly or through franchisees. The demand for aerated drinks is currently 373 million and is expected to be around 479 million by the year 2014-15. The market growth rate is expected to be 3.5% from 2009-10 to 2014-15. There is a very good market potential and good scope in this sector. New entrepreneurs should venture into this field. Few Indian Major Players are as under: Aradhana Soft Drinks Co. Arihant Agro Products Ltd. Cadbury India Ltd. Dempo Industries Ltd. Devyani Beverages Ltd. Duke & Sons Ltd. Fresh & Honest Cafe Ltd. Golden Anchor Pvt. Ltd. Hindustan Coca-Cola Mktg. Co. Pvt. Ltd. Indo European Breweries Ltd. New Kenilworth Hotel Pvt. Ltd. Parle Bisleri Pvt. Ltd. Pearl Beverages Ltd. Pepsico India Holdings Pvt. Ltd. Sri Sarvaraya Sugars Ltd. Varun Beverages Ltd.
Plant capacity: 7200000 Ltrs./AnnumPlant & machinery: 271 Lakhs
Working capital: -T.C.I: Cost of Project : 494 Lakhs
Return: 43.00%Break even: 53.00%
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BANANA CHIPS - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics

Snack foods have become very popular among all age groups in India and its popularity is growing day by day. A variety of snack foods are presently available at reasonable prices but banana chips have gained popularity during the past years. Banana Chips are a popular snack eaten world over. It is high in saturated fat content. They are a tropical snack. These are hot, salty, crunchy fried plantain chips. It is served as part of a traditional meal in South India. It is very popular in many countries in the tropical belt. It is an alternative to potato and corn chips. Banana (Musa sp.) is the second most important fruit crop in India next to mango. Its year round availability, affordability, varietals range, taste, nutritive and medicinal value makes it the favorite fruit among all classes of people. It has also good export potential. They have great potential for growth due to their immense popularity and nutritional aspects. There are two different methods for making banana chips. One of these is to deep fry thin slices of banana in hot oil, in the same way as potato chips or crisps. The other is to dry slices of banana, either in the sun or using a solar or artificial dryer. The products made by the two methods are quite different. The deep fried chips tend to be a savoury, high calorie product that is eaten as a snack food. Because they are deep fried in oil they have a fairly short shelf life- up to 2 months maximum when stored in the correct conditions. The oil is prone to turning rancid and the crisps to becoming soft if they are not stored in air-tight containers. The overall size of the snack food market is estimated at Rs 45 to Rs 50 billion. The market is reported to be growing at 7 to 8 % annually. Chips are estimated to constitute nearly 85% of Indias total salty snack food market of about Rs 2,500 crore. According to a projection by Euromonitor International, the branded snacks market would reach a value of Rs 35 billion by 2012. About 90% of banana produced is consumed domestically as fresh fruit. Merely 5% is consumed in processed form providing a good potential for future processing. About 2.5% is only processed purely as banana products and the rest as an ingredient in other foods. About 17 varieties of products could be made from banana. The primary product of banana in market is fried chips and candy which constitute around 31%, rest as banana puree 9%, banana pulp 3%, banana beer 3%, banana chips 3%, banana powder 6% and others. There is a good market demand of all banana products. There is a very good scope for this product and new entrepreneurs should venture into this field. Few Indian Major Players are as under: Asian Home Products Private Limited Nenmani Agro Mills Pvt. Ltd. CTC Exports Pvt. Ltd. Planters Products Kalambe Food Products Nissi Foods Punitha Exports S. Vipra Food Private Limited Polawess Trading Neelgiri Herbals Food Agenda Tropical Synergy International Goodriche Traders Naska Food & Bakers Banaanaa Slice Travancore Foods
Plant capacity: 30000 Kgs/AnnumPlant & machinery: 5 Lakhs
Working capital: -T.C.I: 14 Lakhs
Return: 51.00%Break even: 53.00%
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SOYA LECITHIN - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics

Lecithin is a synonym for phosphatidylcholine. It is the main lipid component in biological membranes, like our cell membranes or cell walls of plants. On the other hand, commercial lecithin is actually a natural mixture of neutral and polar lipids, including glycolipids, triglycerides, sterols, and small quantities of fatty acids, carbohydrates, and sphingolipids. The polar lipid Phosphatidyl choline is present in commercial lecithin in concentrations of 20 to 90%. Lecithin is a generic term to designate any group of yellow-brownish fatty substances occurring in animal and plant tissues, and in egg yolk, composed of phosphoric acid, choline, fatty acids, glycerol, glycolipids, triglycerides, and phospholipids (e.g., phosphatidylcholine, phosphatidylethanolamine, and phosphatidylinositol). Lecithin is one of the principal natural emulsifiers for the industry. It is used in many products from food industrial chemicals to animal feed stuffs and pharmaceuticals. Lecithin is unique amongst natural emulsifiers for the sheer diversity of functions it performs in the food industry. Lecithin that contains phosphatidyl choline is produced mainly from vegetable sources, although it may also be found in animal and microbial sources. Majority of commercial lecithin sold in the market today come from soybean (mostly), sunflower, and grape seed. Soybean lecithin comprises of phospholipids and triglycerides with minor amounts of phytoglycolipids, phytosterols, tocopherols and fatty acids. Lecithin is anti-oxidant and emulsifying agent. The multi functional properties of emulsifying, wetting, colloidal and antioxidant properties make soya lecithin to be an ideal food ingredient. It is an emerging application as health protection food. Lecithin has been shown to lower total plasma cholesterol. Pharmaceutical industry uses lecithin in a number of formulations. For these applications, pure lecithin is needed, i.e. free of all other substances, primarily oil and fatty acids. Soy lecithin consists of three types of phospholipids; phosphatidylcholine (PC), phosphatidylethanolamine (PE) and phosphotidylinositol (PI). It is extracted from soybean oil and is generally used as a natural emulsifier or stabilizer in various food applications. Lecithin's multifunctional properties and its `natural' status make it an ideal food ingredient in cake mixes, cheese, candy, salad products, chewing gum, chocolate, dehydrated foods and margarine on account of it emulsifying, wetting, colloidal and antioxidant properties. Lecithin is a combination of naturally-occurring phospholipids, which are extracted during the processing of soybean oil. The soybeans are tempered by keeping them at a consistent temperature and moisture level for approximately seven to 10 days. This process hydrates the soybeans and loosens the hull. The soybeans are then cleaned and cracked into small pieces and the hulls are separated from the cracked beans. Next, the soybean pieces are heated and pressed into flakes. Soybean oil is extracted from the flakes through a distillation process and lecithin is separated from the oil by the addition of water and centrifugation or steam precipitation. The present Indian demand is around 7500 tonnes per annum and the export demand around 10500 tonnes per annum where as the global demand is around 225,000 tonnes per annum according to estimate. Major Manufacturers • Archer Daniels Midland Company (ADM) • Degussa Texturant Systems (USA, Netherland, Germany) • Cargill • Lucas Meyer of Hamburg, Germany • Beijing Nanyuan Vegetable Oil Plant, China • Hellongjiang Anda Oil & Fat Plant, China • Qiqihar Xinghua Soya Bean, China • Nanjing Food Additive Plant, China • Lecithin Economic & Technology Development Corporation, China • Agro Solvent Products, Madhya Pradesh • Ruchi Group, Madhya Pradesh • Kriti Industries., Madhya Pradesh • Sakthi Soya, Coimbatore • Gujarat Ambuja Exports Ltd., Ahmedabad • Krishna Oil Extraction, Madhya Pradesh
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: 1.00%Break even: N/A
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SORBITOL - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics

Sorbitol, a polyol (sugar alcohol), is a bulk sweetener. Sorbitol is produced either from starch hydrolysates, from dextrose syrup, or from dextrose monohydrate. It is a water soluble polyhydric alcohol, having sweet taste and high stability besides properties of humectancy and plasticizing. Sorbitol is about 60 percent as sweet as sucrose with one-third fewer calories. It finds a wide range of application such as oral care, cosmetics, pharma, paints, etc. Sorbitol also combines well with other food ingredients such as sugars, gelling agents, proteins and vegetable fats. It functions well in many food products such as chewing gums, candies, frozen desserts, cookies, cakes, icings and fillings. It is used to manufacture toothpaste, tonics/liquid pharmaceutical formulations, cosmetic products like face creams and lotions, etc. It has a smooth mouthfeel with a sweet, cool and pleasant taste. It is non-cariogenic and may be useful to people with diabetes. In pharmaceutical sector it finds application in vitamin syrups, cough syrups, tablet compounding and many others. A newly developing outlet for sorbitol is its use in producing clarifying agents for polypropylene. Clarifying agents enable polypropylene to substitute for higher cost polymers in food packaging, drinking cups and housewares. Sorbitol meant for other applications, be it food, hygiene products or pharmaceuticals, can be of the "non-crystallizing" type and is produced from starch hydrolysates. Sorbitol is produced either from starch hydrolysates, from dextrose syrup, or from dextrose monohydrate. Sorbitol is manufactured by reaction with hydrogen gas with high pressure hydrogenation of 50% aqueous dextrose solution at 140 to 165 Deg C in 3 to 4 hours with Raney nickel catalyst, using promoters such as salts of magnesium, nickel, molybdenum, iron etc. Generally dextrose is produced in house from Starch by enzymatic process The Indian demand is around 90000 tonnes per annum. In India, Sorbitol is produced only as 70% solution and the operating capacity is around 125900 tonnes per annum. The global demand is around 1.6 million tonnes per annum (both liquid and crystalline) with a growth rate of around 3% per annum. Major Manufacturers • Anil Products Ltd.,Ahmedabad • Gulshan Polyols (Gulshan Sugars & Chemicals Ltd.,) Delhi • Maize Products,Ahmedabad • Gujarat Ambuja Proteins Ltd. Ahmedabad • Sukhjit Starch Chemicals, Punjab • Kasyap Sweetners Ltd., Madhya Pradesh • Roquette America, Inc.US • Atanor S.A.USA • Coyne Chemical,USA • Habib Arkady Ltd.,Pakistan • Mudanjiang Pharmaceutical Group Co. Ltd.China • Pt Sumi Asih Oleochemical Industry,China • Shanghai Haohua Chemical Co., Ltd.Shanghai,China Sorbitol’s good taste, reduced caloric value, versatility and other advantages facilitate its use in a wide variety of products. With the increasing demand for products reduced in calories or fat, sorbitol’s use should increase as well. Considering the application potentials of sorbitol and the feasibility of exploiting the export opportunities, creation of new capacity for Sorbitol can be considered in the country.
Plant capacity: 40.0 Tonnes/DayPlant & machinery: 1
Working capital: N/AT.C.I: 1
Return: 1.00%Break even: 1.00%
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Natural Colours - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Layout

-Capsanthin(paprika oleoresin) from chilly/ paprika capsicum -Curcumin from turmeric -Lycopen from tomatoes and other red fruits India, recognized as one of the hotspots of biodiversity is home to a range of economically important plants. Some of these plant species have found use in the preparation of natural dyes. Natural dyes are colorants having several applications in textiles, inks, cosmetics, etc. ‘Natural’ has become a word consumers like to see on food product packages, while ‘clean label’ is an industry term to describe an E-number-free ingredients list. Natural colours have an advantage over synthetic colours in that they are perceived as being preferable because they are natural.The market for colours is shifting to favour natural colours, but there is still a big need for certain synthetic colours. Natural dyes are a great source from plants. Roots, nuts and flowers are just a few common natural ways to get many colors. Yellow, orange, blue, red, green, brown and grey are available. While natural plant extracts were largely used in the food colourings earlier, the synthetic colours have replaced the natural plant extracts in recent times. With imposition of ban on use of several synthetic colours particularly in Europe in recent years, the natural colours are gaining importance. The six colours identified by the Southampton study are: sunset yellow E110, tartrazine E102, carmoisine E122, ponceau 4R E124, quinoline yellow E104 and allura red E129. These were identified in a study conducted at Southampton University and published in The Lancet in 2007, and were linked to hyperactivity in children. Products containing any of the so-called Southampton Six food colours will have to carry a warning on packaging under European law. Although plants exhibit a wide range of colours, not all of these pigments can be used. * Some do not dissolve in water * Some cannot be adsorbed on substrates * Some others fade when washed or exposed to air or sunlight. * Therefore, the use of plant materials as natural colour is selective. Some natural colours include anthocyanin from strawberries, raspberries, grape peel, blueberries etc, capsanthin (paprika oleoresin) from chilly/ paprika capsicum, curcumin from turmeric, lycopen from tomatoes and other red fruits etc. Betalains are water-soluble natural pigments that include red-violet betacyanins and yellow betaxanthins. Market potential Natural colours – which lost their appeal when synthetic colours arrived on the scene, promising higher consistency, heat stability, colour range and cost – are coming back into fashion as consumer awareness increases over the link between diet and health. Natural colours now make up 31 per cent of the colourings market, compared with 40 per cent for synthetics, according to Leatherhead Food International, LFI. Market growth The colours market is estimated by RTS to be worth USD $1.7billion, with natural colours said to make up USD $0.65 billion. Speaking at the HiE conference, Steve Rice of RTS said the colours market was an “important but changing market”, noting the recent shift towards more natural colours has meant the market for synthetics has decreased, with demand for natural colours growing at a much faster rate. “Total colour usage has been growing by about 4 per cent year on year, but naturals are growing by 6.5 per cent year on year, so inevitably we can see that it’s synthetic colours that are being squeezed out,” said Rice. “Our forecasts now show very little growth for synthetics, with all of the growth coming from naturals.” Emerging markets Jamie Rice, also of RTS, said that the largest value markets for natural colours remained Western Europe and North America, accounting for 32 and 29 per cent of the market share respectively, but emerging markets offer growth. “A lot of the high growth is in actually in the emerging markets of Eastern Europe, Central and South America, and Asia pacific. These regions are offering growth rates in excess of 8 per cent,” he said. “It’s very important to understand that there is good value is in developed markets, but there is very big growth coming from the emerging markets,” he added. Segmentation Jamie Rice noted the split between natural and synthetic is very different in different product categories. For soft drinks, he said that in the last ten years natural colours have taken an increasing share of the market, and the same applies to confectionery: “We forecast over the next five years that the confectionery market will see almost a 50:50 split between naturals and synthetics,” said Mr Rice. In meat and savoury products there has always been a high use of natural colours, however yogurts and deserts have been increasing the use of natural colours, and currently use just over half use natural colours at the moment – which, according to Jamie Rice “looks set to increase even more looking to the future.” This has accelerated the drive towards using ‘natural colours’. The Natural Food Colours Association (NatCol) has a list classifying colours according to whether they occur in nature and are naturally-sourced, occur in nature but can be synthetically manufactured, or do not occur in nature and are manufactured synthetically, but these are not legal definitions. Both colours that are naturally sourced and synthetically manufactured are attributed an E-number which has to be used on product packaging in the EU – but consumers may not be aware that no all E-numbers are artificial. A way to avoid having to use an E-number coloured is to use a colouring foodstuff, that is, ingredients that used in their natural food form to lend their colour to the formulation, without any purification having taken place. Food companies tend to couch references to colourings carefully. For instance, a manufacturer may declare their products contain ‘no artificial colourings’, but they may still have colours that do exist naturally but which tend to be synthetically produced when used on an industrial scale. Forecast According to RTS, one key point is that manufacturers are looking ever more intensely at the stability of natural colours, and at potential new natural extracts. Jamie Rice added that the area “is going to become much more competitive over the coming years.” However, he warned that for now at least, industry should not get “too carried away” with natural colours, because not all ingredients can be natural and synthetics are still important in the production of certain products. “Yes there is a shift towards naturals, but it’s not the end of synthetics … yet! There are still cases where synthetics are necessary, whether that’s because of the production processes or because of the final colour presentation needed,” he said. Moreover, since July 2010 products containing the six additives (E 110, E 104, E122, E129, E102 E124) must now carry warning labels, which is undesirable for both manufacturers or retailers from a sales perspective. Indian supply scenario Installed capacity for natural colours (other than natural Indigo) is around 250 tonnes per annum while the production of natural colours (other than natural indigo) is around 100 tonnes per annum. To compete in the global market, quality parameters and sustainable supply capability are vital needs for the Indian units. Indian units have to go a long way for capturing market. Some Indian producers * Aarkay Food Products Ahmedabad * Asian Herbox Ltd.,Hyderabad * Akay Flavours, Kerala * AVT Natural Products,Tiptur, Karnataka * Bhagat International Pvt. Ltd., / Vinayak Ingredients Mumbai * Chillies Export House Ltd., Virudhunagar, Tamil Nadu * Enjayes Spices Chemicals & Oils Ltd., Kottayam,Kerala * Kancor Ingredients Ltd * KCP Biotech Ltd, Hyderabad * Sanat Products New Delhi * Sears Phytochem Ltd.,Madhya Pradesh
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: 1.00%Break even: N/A
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DEHYDRATED ONION & ONION POWDER - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost of Project

Dehydrated Onions have been produced in small quantities since the nineteenth century. Onion is an important vegetable crop grown in India and forms a part of daily diet in almost all households throughout the year. India is the second largest producer of onion in the world. Onion is one of the most important but perishable groups known. It is also used for medical purpose. But due to non-availability of appropriate post-harvest storage facilities, 20-25% of the total produced onions are wasted, which in terms of value amounts to crores of rupees. Unprocessed foods are susceptible to spoilage by biochemical processes, microbial attack and infestation. The right post harvest practices such as good processing techniques, and proper packaging, transportation and storage (of even processed foods) can play a significant role in reducing spoilage and extending shelf life. Among various methods of preservation, dehydration of vegetables is one of the most popular and oldest methods. Dehydration increases the storage period of vegetables and make them available throughout the year and even in off-season, thus supplying the important nutrients in a concentrated form. Dehydrated foods are more concentrated source of minerals than any other preserved form of foodstuff. Almost all dehydrated onion products like-kibbled, sliced, rings (half & full), large kibbled, minced (in various cut sizes), chopped, granulates and powder forms are not new to households & restaurants. It has good potential in food processing industries, defense, pharmaceutical industries, hotels and restaurants, caterers, etc. In the food processing field, dehydration is sometimes described as the removal of 85% or more of water from a food substance, by exposure to thermal energy by various means. The main advantages of dehydrated onions are that they are easy to store, being lighter in weight and smaller in bulk than fresh or other processed onions. They are cheap to pack compared with canned goods. They do not require refrigerated storage as do frozen onions and the contents of a container can be used some time after opening provided they are not dehydrated. Dried onion is now available in market in the powdered or kibled form. The composition of the fresh and dried forms is given. The kibbled form has moisture content of about 10% microscopically onion powders shows abundant parent chymatous cells. In India dehydration of many food products especially vegetables and some fruits are in practices at home and industry level throughout year. As a whole the products have fair market demand. There is a good scope and good market potential in such products and new entrepreneurs should venture in such projects. Capacity : 1800 MT/Annum 900 MT/Annum Dehydrated Onion (Chopped and Sliced) 900 MT/Annum (Dehydrated Onion Powder)
Plant capacity: 1800 MT/Annum Plant & machinery: 224 Lakhs
Working capital: -T.C.I: 672 Lakhs
Return: 44.00%Break even: 41.00%
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PRECIPITATED SILICA FROM RICE HUSK ASH - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities

Rice husk is an agricultural residue easily available in rice producing countries. India is a major rice producing country, and the husk generated during milling is mostly used as a fuel in the boilers for processing paddy, producing energy through direct combustion & or by gasification. The rice husk contains about 75% organic volatile matter & the balance 25% of the weight of this husk is converted into ash during the firing process, is known as rice husk ash (RHA). This RHA in tern contains around 85%–92% amorphous silica. About more 20 million tones of RHA are produced annually in India. Generally rice husk is not used as cattle feed since its cellulose & other sugar contents are low. So the RHA produced is a great environment threat causing damage to the land & the surrounding area in which it is dumped. Lots of ways are being through off for disposing them by making commercial use of this RHA. Silica is one of the valuable inorganic chemical compounds. It can exist in gel, crystalline and amorphous forms. It is the most abundant material in the earth’s crust. Silica is the major constituent of rice husk ash. With such a large ash content & silica content in the ash it becomes economical to extract silica from the ash, which has wide market & also takes care of ash disposal. Precipitated Silica (also called particulate silica) is composed of aggregates of ultimate particles of colloidal size that have not become linked in massive gel network during the preparation process. It is an amorphous form of silica; the word amorphous denotes a lack or crystal structure, as defined by x-ray diffraction. Early interest in amorphous silica was purely academic. The ash produced after the husks have been burned is high in silica. RHA can be used in a variety of application like: green concrete, high performance concrete, ceramic glaze, water proofing chemicals, roofing shingles, insulator, specialty paints, flame retardants, carrier for pesticides, insecticides & bio fertilizers etc. Precipitated silica is also used as filler for paper & rubber, as a carrier & diluents for agricultural chemicals, as an anti caking agent, to control viscosity & thickness and as a cleansing agent in toothpastes & in cosmetics. The distinguishing feature of the growth of precipitated silica industry in India is that it has classifiably flourished in the small-scale sector. Readily available new materials low capital investment & high rates of return offer a distinct advantage to the small-scale manufacturers to venture into this field. There is a very good scope in this sector. Few Indian Major Players are as under: Gujrat Multi Gas Base Chemicals Private Limited Gujarat Multi Gas Base Chemicals Private Limited, Mumbai Manswill Chemicals Private Limited Wellink Chemical Industrial Company Limited, Nanping Insilco Limited Famous Minerals and Chemicals Private Limited Gujarat Silicon Pvt. Ltd.
Plant capacity: 600 MT/AnnumPlant & machinery: 53 Lakhs
Working capital: -T.C.I: 273 Lakhs
Return: 43.00%Break even: 47.00%
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POTATO POWDER, FLAKES & GRANULES WITH COLD STORAGE - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Production Schedule

Potato is considered to be one of the traditional food items of India. Potato is the staple food for 2/3rd of the world population. India is presently the 3rd largest potato growing country in the world. Potato is one of the important tuber vegetables, which is consumed throughout the year. Its Botanical name is Solanum tuberosum. The main edible part is its tuber. Potato is one of the most important but perishable groups known. Unprocessed foods are susceptible to spoilage by biochemical processes, microbial attack and infestation. The right post harvest practices such as good processing techniques, and proper packaging, transportation and storage (of even processed foods) can play a significant role in reducing spoilage and extending shelf life. Among various methods of preservation, dehydration of vegetables is one of the most popular and oldest methods. Dehydration increases the storage period of vegetables and make them available throughout the year and even in off-season, thus supplying the important nutrients in a concentrated form. Dehydrated foods are top-quality biological products and foods, picked in the peak of their ripeness and after cleaning and trimming, dehydrated with 98% of their moisture taken out. Dehydrated foods are more concentrated source of minerals than any other preserved form of foodstuff. Almost all dehydrated potato products like flakes, granulates and powder forms are not new to households & restaurants. It has good potential in food processing industries, defenses, pharmaceutical industries, hotels and restaurants, caterers, etc. Potato powder, Granules and flakes are processed dehydrated potato products. The processing of potatoes increases the shelf life of potatoes. There are various machines which are required for the processing of potatoes. Most of the machines are indigenously available & very few of them may be imported. There are plenty of well varieties of potato available for processing. There are few good technologists available, for supplying process technology. There is environmental pollution problem within this industry but can be solved using proper treatment. As a whole the products have fair market demand. There is a good scope for new entrepreneurs. Few Indian Major Players are as under: Tipsy-Topsy Exports Superveg Agrotech Pvt. Ltd. Sifter International Nile Valley Company Rice, Spice and Paper Inc.
Plant capacity: 14400 MT Potato Powder,14400 MT Potato Flakes,6000 MT Potato GranulesPlant & machinery: 12900 Lakhs
Working capital: -T.C.I: Cost of Project : 15800 Lakhs
Return: 44.00%Break even: 34.00%
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GUAR GUM - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics

Guar Gum is a white to yellowish white powder. It is nearly odorless. When dissolved in hot or cold water guar gum forms a paste of high viscosity. Guar's viscosity is a function of temperature, time and concentration. Guar gum can best be described as a natural food thickener, similar to locust bean gum, cornstarch or tapioca flour. Guar gum is said to have significantly more thickening ability than cornstarch. Guar gum is not just a thickening agent, but a binder and plasticizer as well. Guar gum has excellent thickening, emulsifying, stabilizing and film forming properties. At very low concentration, guar gum has excellent settling (flocculation) properties and it acts as a filter aid. Guar gum is compatible with a variety of inorganic and organic substances including certain dyes and various constituents of food. It is also used in pharmaceuticals and cosmetics Industry. Guar gum is extracted from the guar bean. The guar plant 'Cyamopsis Tetragonalobus' is an annual plant. The legume is an important source of nutrition to animals and humans. Guar or cluster beans is a legume crop that grows in the semi-arid regions of India during kharif season. India is the major producer of guar seed and gum, making up 80 to 85 per cent of the total global supply. Guar is primarily grown in Rajasthan, besides Haryana, Punjab, Gujarat and Madhya Pradesh. Export demand for guar gum is substantial .Major producers of guar gum in India are India Glycols, Vikas WSP and Vimta Labs, etc. Vimta Labs has been nominated by the European Union to certify that guar gum shipments are free from dioxins and pentacholorophenols (PCP). Guar gum has gained popularity over other gums and polysacchrides because of its increasing uses.
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: 1.00%Break even: N/A
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COTTON SEED DELINTING, DEHULLING AND OIL EXTRACTION - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Cost of Project

Cotton plant is cultivated mainly for fibre and its seed are a rich source of protein and edible oil. Cottonseed oil has many applications varying from medicinal to technical purposes. The other uses are for cosmetic creams, glycerol, lubricants, soap stocks, etc. The oil cake can be used as animal feed, filler for plastics & fertilizer ingredient. India is one of the largest producer of oil seeds and oil bearing materials and both edible and non-edible oil in the world. Cottonseed oil is cooking oil extracted from the seeds of cotton plant of various species, mainly Gossypium hirsutum and Gossypium herbaceum. Cotton grown for oil extraction is one of the big four genetically modified crops grown around the world, next to soy, corn, and rapeseed (canola). The cottonseed has a similar structure to other oilseeds such as sunflower seed, having an oil bearing kernel surrounded by a hard outer hull; in processing, the oil is extracted from the kernel. Cottonseed oil is used for salad oil, mayonnaise, salad dressing, and similar products because of its flavor stability. The cottonseed oil undergoes intensive treatment after extraction to reduce the level of gossypol found in untreated cottonseed oil, the consumption of which may produce undesirable side-effects. Its fatty acid profile generally consists of 70% unsaturated fatty acids including 18% monounsaturated (oleic), 52% polyunsaturated (linoleic) and 26% saturated (primarily palmitic and stearic). Cottonseed oil is described by scientists as being "naturally hydrogenated" because the saturated fatty acids it contains are the natural oleic, palmitic, and stearic acids. These fatty acids make it stable frying oil without the need for additional processing or the formation of trans fatty acids. Cotton seed oil is not required to be as fully hydrogenated for many purposes as some of the more polyunsaturated oils. On partial hydrogenation, the amounts of monounsaturated fatty acids actually increase. When hydrogenated to a typical iodine value of about 80, for example, its fatty acid profile shifts to 50% monounsaturated, 21% polyunsaturated, and 29% saturated, which are all well within current diet/health guidelines. Cottonseed oil resists rancidity and therefore offers a longer shelf life for food products in which it is an ingredient. Refined cottonseed oil, which contains practically no gossypol, is pale yellow in colour and can be used directly as a cooking medium. Among the agro-based industries, oil seeds crushing and vanaspati, industry forms a major group employing 0.5 million persons. Cottonseed crushing industry has made continuous progress in the country. The growing shortage of other edible oils in the country during the sixties and seventies gave a greater impetus to increased use of cottonseed for oil extraction. Special mention may be made of the incentives given by Government by way of (i) excise rebate on cottonseed oil used for vanaspati manufacture, (ii) specifying that a minimum level of cottonseed oil should be used in vanaspati manufacture, and (iii) subsidy for export of cottonseed meal after extraction of oil. The All-India Cottonseed Crushers' Association, formed in 1959, has also played a major role in increasing utilization of cottonseed oil. There is an ample space and very good scope for cottonseed oil. New entrepreneurs should venture into this field. Few Indian Major Players are as under: Akash Agro Inds. Ltd. Ankur Protein Inds. Ltd. Arjuna Cotton & Spinning Mills Ltd. Bhakra Industries Ltd. Birla Agro Pvt. Ltd. Birla Cotsyn (India) Ltd. Coromandel Agro Products & Oils Ltd. G S Oils Ltd. Gujarat Ambuja Proteins Ltd. Kedia Overseas Ltd. Morinda Overseas Inds. Ltd. Morvi Vegetable Products Ltd. P H Sales & Services Ltd. Raghunath Cotton & Oil Products Ltd. Ramdeo Oil Inds. Ltd. Rom Industries Ltd. Shri Sainath Proteins Ltd. Siddaganga Oil Extractions Pvt. Ltd. Sona Oil & Chemical Inds. Ltd. Thapar Agro Mills Ltd. Tirupati Industries (India) Ltd. Vimal Oil & Foods Ltd.
Plant capacity: 8100 MT Cotton Seed Oil/Annum,21150 MT Cotton Seed Cake/Annum,6750 MT Cotton Seed Lints/AnnumPlant & machinery: 483 Lakhs
Working capital: -T.C.I: Cost of Project : 978 Lakhs
Return: 45.00%Break even: 60.00%
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