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

Automotive Industry: Project Opportunities in Tamil Nadu

 

PROFILE:

The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. Automotive industry is the key driver of any growing economy. It plays a pivotal role in country's rapid economic and industrial development. It caters to the requirement of equipment for basic industries like steel, non-ferrous metals, fertilisers, refineries, petrochemicals, shipping, textiles, plastics, glass, rubber, capital equipments, logistics, paper, cement, sugar, etc. It facilitates the improvement in various infrastructure facilities like power, rail and road transport. Due to its deep forward and backward linkages with almost every segment of the economy, the industry has a strong and positive multiplier effect and thus propels progress of a nation. The automotive industry comprises of the automobile and the auto component sectors.

 

RESOURCES:

Tamil Nadu is being popularly hailed as “Detroit” of India as it has a large Automobile and Ancillary sector. Automobile industry plays a crucial role in the State economy and has been one of the key driving factors, contributing 8% to State GDP and giving direct employment to 2,20,000 people. More than100 companies in the Automotive and Auto Ancillary industry are located in this state, maintaining highest production norms by implementing internationally recognized quality standards. Chennai has emerged as India's largest automobile and auto components exporter in India. Hyundai has made Chennai the manufacturing and export hub for its small cars. Tamil Nadu has the largest auto components industry base. Currently, Tamil Nadu accounts for above 32% of India's production capacity. Automobile manufacturers operate "Just - in-Time" avoiding inventory costs. The state has a well-developed automotive and auto component industry. It is the hub of Indian automobiles industry. Several automobile and automobile ancillary units are located in Tamil Nadu. It has manufacturing facilities across the automotive spectrum from tractors to battle tanks. Global auto majors like, Hindustan Motors and Mitsubishi have commenced production plants. Ashok Leyland and TAFE have set up expansion plants in Chennai. Fortune 500 companies such as Hyundai and Ford have established manufacturing facilities in the state.

 

GOVERNMENT POLICIES:

Government brought out a very innovative Policy "Ultra Mega Policy for Integrated Automobile Projects" that offers a very attractive package of support to automobile projects investing more than Rs.4000 Crores. As a result of this Policy, since May 2006, investments attracted by Tamil Nadu is automobiles & components manufacturing is Rs.21900 Crores, almost 5 times of the Investments attracted during previous 15 years (May 1991-April 2006). The total employment potential in these new projects is: 1.20 lakhs (direct + Indirect). Govt of India is currently implementing a project "National Automotive Testing R&D Infrastructure Project" (NATRIP) in Oragdam near Chennai at a project cost of about Rs.450 Crores. This project aims at facilitating introduction of world-class automotive safety, emission and performance standards in India as also ensure seamless integration of our automotive industry with the global industry.

 

Textile: Project Opportunities in Tamil Nadu

 

PROFILE:

The textile industry is primarily concerned with the production of yarn, and cloth and the subsequent design or manufacture of clothing and their distribution. The raw material may be natural or synthetic using products of the chemical industry. India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world.

RESOURCES:

Tamil Nadu has traditional strengths in the textile sector. In the post-quota abolition regime, the Textile Industry has tremendous opportunities for growth as well as challenges to be met. Availability of cotton at fair prices and at right quality, the backlog in modernization, supply of inputs particularly credit and power at reasonable rates etc. are all essential for the textile industry to be competitive in an increasingly uncertain trading environment. The Handlooms, Power looms, Hi-Tech Weaving Parks, Garments & Hosiery, Processing Apparel Park are important components of the textile industry.

GOVERNMENT POLICIES:

 

The Ministry of Textiles in India has formulated numerous policies and schemes for the development of the textile industry in India. The government of India has been following a policy of promoting and encouraging the handloom sector through a number of programmes. Most of the schematic interventions of the government of India in the ninth and tenth plan period have been through the state agencies and co-operative societies in the handloom industries. Some of the major acts relating to textile industry include: Central Silk Board Act, 1948, The Textiles Committee Act, 1963, The Handlooms Act, 1985, Cotton Control Order, 1986, The Textile Undertakings Act, 1995Government of India is earnestly trying to provide all the relevant facilities for the textile industry to utilize its full potential and achieve the target. The textile industry is presently experiencing an average annual growth rate of 9-10% and is expected to grow at a rate of 16% in value, which will eventually reach the target of US $ 115 billion by 2012. The clothing and apparel sector are expected to grow at a rate of 21 %t in value terms.

 

Leather: Project Opportunities in Tamil Nadu

 

PROFILE:

Leather Industry occupies a place of prominence in the Indian economy in view of its massive potential for employment, growth and exports. There has been increasing emphasis on its planned development, aimed at optimum utilisation of available raw materials for maximising the returns, particularly from exports.  The leather and leather products industry is one of India’s oldest manufacturing industries that catered to the international market right from the middle of the nineteenth century. The leather industry employs about 2.5 million people and has annual turnover of Rs. 25,000 crores. India is the third largest leather producer in the world after China and Italy

RESOURCES:

Leather industry in Tamil Nadu is considered to be very ancient and some say it is of more than two centuries old. The state accounts for 70 per cent of leather tanning capacity in India and 38 per cent of leather footwear and components. The exports from Tamil Nadu are valued at about US $ 762 million, which accounts for 42 per cent of Indian leather exports. Hundreds of leather and tannery industries are located around Vellore, Dindigul and Erode its nearby towns such as Ranipet, Ambur, Perundurai, Nilakottai and Vaniyambadi. The Vellore district is the top exporter of finished leather goods in the country. That leather accounts for more than 37% of the country's Export of Leather and Leather related products such as finished leathers, shoes, garments, gloves and so on. The tanning industry in India has a total installed capacity of 225 million pieces of hide and skins of which Tamil Nadu alone contributes to an inspiring 70%. Leather industry occupies a pride of place in the industrial map of Tamil Nadu. Tamil Nadu enjoys a leading position with 40% share in India's export.

GOVERNMENT POLICIES:

Government policies in support of the industry:

• The entire leather sector is now de-licensed and de-reserved, paving way for expansion on modern lines with state-of-the art machinery and equipment

• 100% Foreign Direct Investment and Joint Ventures permitted through the automatic route

• 100% repatriation of profit and dividends, if investments made in convertible foreign currency. Only declaration to this effect to the Reserve Bank is required.

• Promotion of industrial parks (one leather park in Andhra Pradesh, one leather goods park in West Bengal, one footwear park in Tamil Nadu and one footwear components park in Chennai).

• Funding support for modernizing manufacturing facilities 

• Funding support for establishing design studios

• Duty free import of raw materials (namely raw skins, hides, semi finished leather and finished leather) and of embellishments and components under specific scheme

• Concessional duty on import of specified machinery for use in leather sector

• Duty neutralization / remission scheme

Food Processing: Project Opportunities in Tamil Nadu

 

PROFILE:

India is the world's second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The Indian food processing industry stands at $135 billion and is estimated to grow with a CAGR of 10 per cent to reach $200 billion by 2015. The food processing industry in India is witnessing rapid growth. In addition to the demand side, there are changes happening on the supply side with the growth in organised retail, increasing FDI in food processing and introduction of new products. India's food processing sector covers fruit and vegetables; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products, Soya-based products, mineral water, high protein foods etc.

RESOURCES:

Tamil Nadu has historically been an agricultural state and is a leading producer of agricultural products in India. In 2008, Tamil Nadu was India's fifth biggest producer of Rice. The total cultivated area in the State was 5.60 million hectares in 2009-10. The state is the largest producer of bananas, flowers, tapioca, the second largest producer of mango, natural rubber, coconut, groundnut and the third largest producer of coffee, sapota, Tea and Sugarcane. Tamil Nadu's sugarcane yield per hectare is the highest in India. Among states in India, Tamil Nadu is one of the leaders in livestock, poultry and fisheries production. Tamil Nadu had the second largest number of poultry amongst all the states and accounted for 17.7% of the total poultry population in India. With the third longest coastline in India, Tamil Nadu represented 27.54% of the total value of fish and fishery products exported by India in 2006.

GOVERNMENT POLICIES:

Tamil Nadu government has come out with following policies :

·         Raise in processed foods in the market from 1% to 10%.

·         Raise value addition levels from 7% to 30 %

·         Food processing industry is one of the growing areas identified for exports. Free Trade Zones (FTZ) and Export Processing Zones (EPZ) have been set up with all infrastructures. Also, setting up of 100% Export oriented units (EOU) is encouraged in other areas. They may import free of duty all types of goods, including capital foods.

·         Capital goods, including spares up to 20% of the CIF value of the Capital goods may be imported at a concessional rate of Customs duty subject to certain export obligations under the EPCG scheme, Export Promotion Capital Goods. Export linked duty free imports are also allowed.

·         Units in EPZ/FTZ and 100% Export oriented units can retain 50% of foreign exchange receipts in foreign currency accounts.

·         50% of the production of EPZ/FTZ and 100% EOU units is saleable in domestic tariff area.

Paper industry: Project Opportunities in Tamil Nadu

 

PROFILE:

Paper Industry in India is riding on a strong demand and on an expanding mood to meet the projected demand of 8 million tons by 2010 & 13 million tons by 2020. The Indian Paper Industry is a booming industry and is expected to grow in the years to come. The usage of paper cannot be ignored and this awareness is bound to bring about changes in the paper industry for the better. It is a well known fact that the use of plastic is being objected to these days. The reason being, there are few plastics which do not possess the property of being degradable, as such, use of plastic is being discouraged. Excessive use of non degradable plastics upsets the ecological equilibrium. The Paper industry is a priority sector for foreign collaboration and foreign equity participation upto 100% receives automatic approval by Reserve Bank of India. Several fiscal incentives have also been provided to the paper industry, particularly to those mills which are based on non-conventional raw material.

RESOURCES:

Tamil Nadu continues to be one of the forerunners in the production of paper and paper products. There are 74 paper mills in operation in Tamil Nadu. The total paper production was 3.7 lakh tonnes in 2005 06 which accounts for 17.30% share of the national production, next only to Andhra Pradesh.  As the country’s forest cover is much below the desired level, the Government of Tamil Nadu established TNPL in 1979 to manufacture newsprint and paper using bagasse (sugarcane waste) as the primary raw material. This is the largest paper mill in India with an installed capacity of 230,000 TPA. Tamil Nadu Newsprint and Papers Limited (TNPL) was established by the Government of Tamil Nadu to produce newsprint and writing paper using bagasse, a sugarcane residue.

GOVERNMENT POLICIES:

Several policy measures have been initiated in recent years to remove the bottlenecks of availability of raw materials and infrastructure development. To bridge the gap of short supply of raw materials, duty on pulp and waste paper and wood logs/chips have been reduced. In the year 1979, Government of Tamil Nadu established Tamil Nadu Newsprint and Papers Limited as a public limited company under the Companies Act, 1956. Commencing production in 1984, with the support of Government of Tamil Nadu, the company has made rapid strides and has emerged as the largest paper mill in India at a single location. With the on-going expansion plan to increase paper production capacity from the present 2.45 lakh tons to 4 lakh tons per annum, TNPL is poised to become a Rs.2000 crores company by 2011-12.

Cement Industry: Project Opportunities in Tamil Nadu

 

PROFILE:

India is the second largest producer of quality cement in the world. The cement industry in India comprises 139 large cement plants and over 365 mini cement plants. Industry's capacity at beginning of the year 2008-09 was 198.30 million tonne (MT) which increased to 219 MT at the close of the year. The initiatives provided by the Government of India to various infrastructure projects, road network and housing activities will provide required stimulus towards the growth of cement industry in India. Domestic demand for cement has been increasing at a fast pace in India & it has surpassed the economic growth of the country.

RESOURCES:

Tamil Nadu is a leading producer of cement in India. It has 13 major cement factories.  It is a home for leading brands in the country such as Chettinad Cements (Karur), Dalmia Cements (Ariyalur), Ramco Cements (Madras Cement Ltd.), India Cements (Sankakari, Ariyalur), Grasim etc. The production of cement in the State increased from 126 lakh tonnes in 2004-05 to 142.89 lakh tonnes in 2005-06 with a growth rate of 13.4% accounting for 10.08 % of cement production at the national level, occupying the 5th place.  However, it may be noted that, the cement production in the private sector has been showing an increasing trend whereas production in the public sector has decreased to 7.85 lakh tonnes from 8.06 lakh tonnes in the public sector for the corresponding period.

GOVERNMENT POLICIES:

Government policies have affected the growth of cement plants in India in various stages. The control on cement for a long time and then partial decontrol and then total decontrol has contributed to the gradual opening up of the market for cement producers. The prices that primarily control the price of cement are coal, power tariffs, railway, freight, royalty and cess on limestone. Interestingly, all of these prices are controlled by government. Cement industry consumes about 5.5bn units of electricity annually while one ton of cement approximately requires 120-130 units of electricity. Power tariffs vary according to the location of the plant and on the production process. The state governments supply this input and hence plants in different states shall have different power tariffs. Another major hindrance to the industry is severe power cuts.

 

Waste management: Project Opportunities in Andhra Pradesh

PROFILE:

Waste utilization, recycling and reuse plays a major role in limiting resource consumption and the environmental impact of waste. Recycling is an integral part of any waste management system as it represents a key utilization alternative to reuse and energy recovery (Waste-to-Energy). Which option is ultimately chosen depends on the quality, purity and the market situation. Hazardous waste management is a new concept for most of the Asian countries including India. The lack of technical and financial resources and the regulatory control for the management of hazardous wastes in the past had led to the unscientific disposal of hazardous wastes in India, which posed serious risks to human, animal and plant life.

 

RESOURCES:

Municipal Solid Waste (MSW) generation in Chennai, the fourth largest metropolitan city in India, has increased from 600 to 3500 tons per day (tpd) within 20 years. The highest per capita solid waste generation rate in India is in Chennai (0.6 kg/d). Chennai is divided into 10 zones of 155 wards and collection of garbage is carried out using door-to-door collection and street bin systems. The collected wastes are disposed at open dump sites located at a distance of 15 km from the city.  Recent investigations on reclamation and hazard potential of the sites indicate the need for the rehabilitation of the sites.  Chennai is the first city in India to contract out MSWM services to a foreign private agency- ONYX, a Singapore based company. The scope of privatization includes activities such as sweeping, collection, storing, transporting of MSW and creating public awareness in three municipal zones.  ONYX collects about 1100 Metric tons of waste from three zones per day and transports it to open dumps.

 

GOVERNMENT POLICIES:

National policy on waste management is set out in the October 1998 policy statement on waste management - Changing our Ways. It outlines the Government's policy objectives in relation to waste management, and suggests some key issues and considerations that must be addressed to achieve these objectives. The policy is firmly grounded in an internationally recognised hierarchy of options, namely prevention, minimisation, reuse/recycling, and the environmentally sustainable disposal of waste which cannot be prevented or recovered.

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Ferrosilicon

Ferrosilicon is an alloy called silicon (Si02) with small percentage of Aluminium (Al203) and many other elements. Ferrosilicon is an alloy of iron and silicon with an average silicon content between 15 and 90 weight percent. This Ferro alloys are used for manufacturing different variety steels for different uses. Ferrosilicon is used as alloying element in manufacturing of spring steel, transformer steel and other types of alloys steels. Ferrosilicon is a alloy which helps in maintaining carbon contents in the steel at the desired level and makes it usable for different purposes. Ferrosilicon is used as a source of silicon to reduce metals from their oxides and to deoxidize steel and other ferrous alloys. This prevents the loss of carbon from the molten steel, ferromanganese, spiegeleisen, silicides of calcium, and many other materials are used for the same purpose. It can be used to make other ferroalloys. Ferrosilicon is also used for manufacture of silicon, corrosion-resistant and high-temperature-resistant ferrous silicon alloys, and silicon steel for electromotors and transformer cores. In the manufacture of cast iron, ferrosilicon is used for inoculation of the iron to accelerate graphitization. In arc welding, ferrosilicon can be found in some electrode coatings. The demand for ferrosilicon has been increasing with that of alloy and special steels. Owing to the lack of a viable alternative that can meet the diverse applications, the global ferro alloys market is estimated to expand at an CAGR of 5.9% till 2025. A significant share of the bulk ferro alloys are used in the production of the steel because of the low prices of the bulk ferro alloys and high production around the major producing regions. The prosperity of the building and construction industry in a number of emerging economies is another key driver of the global ferro alloys market, wherein the development of lightweight and high strength steel grades is expected to open up opportunities. On the other hand, stringent governmental regulations pertaining to the environment and high operational costs have stifled growth in the global ferro alloys market. The market for ferro alloys worldwide is projected to reach US$188.7 billion by 2025, up from US$112.8 billion in 2016. As a whole there is a good scope for new entrepreneur to invest in this business. Few Indian major players are as under: • Alok Ferro Alloys Ltd. • Bhartia Bright & Seamless Steels Ltd. • Bhaskar Shrachi Alloys Ltd. • Centom Industries Ltd. • Chhattisgarh Steel & Power Ltd. • Deepak Ferro Alloys Ltd. • Gaurang Alloys & Iron Ltd. • Hamco Mining & Smelting Ltd. • Hindustan Ferro & Inds. Ltd. • Hira Ferro Alloys Ltd. • Indian Metals & Ferro Alloys Ltd. • Indsil Hydro Power & Manganese Ltd. • Jai Balaji Inds. Ltd.
Plant capacity: 18,000 MT per annumPlant & machinery: 3694 Lakhs
Working capital: -T.C.I: Cost of Project:6670 Lakhs
Return: 26.00%Break even: 69.00%
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Hot Rolled Steel Sections oAngles (equal) oChannels oI Beams oRounds

The steel sections manufactured in rolling mills and used as structural members are known as rolled structural steel sections. The steel sections are named according to their cross sectional shapes. The shapes of sections selected depend on the types of members which are fabricated and to some extent on the process of erection. Many steel sections are readily available in the market and have frequent demand. Such steel sections are known as regular steel sections. Some steel sections are rarely used. Such sections are produced on special requisition and are known as special sections. Structural steel is a popular material used in the construction industry especially for building skyscrapers, bridges, tunnels, towers, industrial buildings and road barriers because of the properties they possess. Some important properties exhibited by structural steels are low weight, high strength, ease of use and uniformity of properties. Structural steels come in various shapes including squares, hexagons and rounds. India’s economic growth is contingent upon the growth of the Indian steel industry. Consumption of steel is taken to be an indicator of economic development. While steel continues to have a stronghold in traditional sectors such as construction, housing and ground transportation, special steels are increasingly used in engineering industries such as power generation, petrochemicals and fertilisers. India’s finished steel consumption grew at a CAGR of 5.69 per cent during FY08-FY18 to reach 90.68 MT. India’s crude steel and finished steel production increased to 102.34 MT and 104.98 MT in 2017-18, respectively. 2017-18, the country’s finished steel exports increased 17 per cent year-on-year to 9.62 million tonnes (MT), as compared to 8.24 MT in 2016-17. Exports and imports of finished steel stood at 4.33 MT and 5.41 MT, during Apr-Nov 2018. Thus, due to demand it is best to invest in this project. Few Indian major players are as under: • Bildon Steels (India) Ltd. • Brilliant Steel Products Ltd. • C P Re-Rollers Pvt. Ltd. • Chamundi Steel Castings (India) Ltd. • Dewas Metal Sections Ltd. • Diamond T M T & Procon Pvt. Ltd. • Divy Rollform Ltd. • Durgapur Steels Ltd. • Electrosteel Steels Ltd. • Essar Steel India Ltd. • Facor Steels Ltd. • Hans Ispat Ltd. • Indore Steel & Iron Mills Ltd. • Indrola Steel Rolling Mills India Ltd.
Plant capacity: M.S. Beam (Size from 152x89x16 to 533x210x138 mm):48,000 MT per annum M.S. Channel (Size from 200x90x30 to 300x100x46 mm):48,000 MT per annum M.S. Angle (Size from 25x25x3 to 200x200x24 mm):48,000 MT per annum M.S. Slags:12,000 MT per annumPlant & machinery: 1238 Lakhs
Working capital: -T.C.I: Cost of Project:2984 Lakhs
Return: 30.00%Break even: 55.00%
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PVC/HDPE Pipes (Irrigation, Drinking Water, Agriculture and Sewerage)

PVC pipes are produced by extrusion process followed by calibration to ensure maintenance of accurate internal dia with smooth internal boxes. These pipes generally come in lengths of 6 meters. A wide range of injection moulded fittings, including tees, elbows, reducers, caps, pipes saddles, inserts and threaded adaptors for pipe sizes 15-150 mm are available. High density polyethylene (HDPE) is being used as drainage pipe material because it is lightweight, corrosion resistant, easy to install, and has a low maintenance cost. The design of HDPE corrugated drainage pipe is based on the assumption that the pipe will deform and thus relieve stress. Consequently, ductility is an essential parameter to accommodate allowable deflection during the pipe’s service life. HDPE pipe is much easier to handle and install than heavier, rigid metallic or concrete pipe, allowing for cost advantages in the construction process. It is structurally better able to withstand an impact than other pipe materials, especially in cold weather installations when other pipes like PVC are prone to cracks and breaks. The India PVC Pipes Market size was valued at $3,159 million in 2016 and is anticipated to expand at a CAGR of 10.2% to reach $6,224 million by 2023. Polyvinyl chloride (PVC) is the third largest selling plastic commodity after polyethylene & polypropylene. It is beneficial over other materials, owing to its chemical resistance, durability, low cost, recyclability, and others; thus, it can replace wood, metal, concrete, and clay in different applications. PVC pipes are manufactured by extrusion method in a variety of dimensions such as solid wall or cellular core construction. They are corrosion resistant, cost-effective, flame resistant, easy to install & handle, and environmentally sound, with long service life. The major growth drivers for this market are the growth of government infrastructural spending, increasing residential and commercial construction, industrial production, irrigation sector, and replacement of aging pipelines. The market can be segmented into UPVC, CPVC, HDPE, LDPE, PPR, PPH pipes and fittings and others. Of these, UPVC has accounted for the highest revenue share, followed by HDPE pipes and fittings. The primary growth drivers for the market have been growing sanitation and agriculture sectors in India. As a whole there is a good scope for new entrepreneur to invest in this business. Few Indian major players are as under: • Ajay Industrial Corpn. Ltd. • Alom Poly Extrusions Ltd. • Anant Extrusions Ltd. • Anantha Pvc Pipes Pvt. Ltd. • Apollo Pipes Ltd. • Ashirvad Pipes Pvt. Ltd. • Ashish Polyplast Ltd. • Captain Pipes Ltd. • Dutron Polymers Ltd. • Gee Emm Polyvin Pvt. Ltd. • Greenfield Irrigation Ltd.
Plant capacity: HDPE Pipes (20 mm to 200 mm):1,656,000 Kgs per annum PVC (RPVC/UPVC) Pipes (19 mm to 110 mm):1,224,000 Kgs per annum PVC (RPVC/UPVC) Pipes (63 mm to 250 mm):1,728,000 Kgs per annumPlant & machinery: 260 Lakhs
Working capital: -T.C.I: Cost of Project:778 lakhs
Return: 27.00%Break even: 56.00%
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Granite Cutting and Polishing

Granite is a light coloured indigenous granular rock, grey, red & pink, white or green in colour & characterised by presence of quartz, feldspar & minor amount of mica. It is generally of three types. It is an important structural ornamental stone & because of its higher compressive strength & durability, is extensively used for massive structural work, fine grained variety of granite that takes & preserve good polish is employed for ornamental & monumental works & also for inscription purposes. The term granite is derived from the latin "granum' a grain. India is one among the leading countries in mining and export of granite and is rich in granite reserves. Geologically, the southern and eastern belts of the Nation are abundant in granite deposits. Different shades of granites are available in abundance in Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Assam, Bihar, Rajasthan, Odisha, Meghalaya and Madhya Pradesh. Indian Granite Stone has become the most sought-after and extensively used stone material in building construction and massive structural works throughout the world, and it is well known in the International market, not only for its elegance and aesthetic quality, but also for its durability. India is one of the leading nations in the production and export of Granite and other stones. Granite is a very hard crystalline, igneous or metamorphic rock primarily composed of feldspar, quartz and lesser amounts of dark minerals. India has vast resources of granite with about 110 varieties of different colours and textures such as black, grey, pink, multi coloured, etc. These varieties are used to produce monuments, building slabs, titles, surface plates etc. However, popular varieties are mainly found in South India. Granites are now mined in most of the Indian states for use as construction material and road metal but production of dressed granite blocks and slabs from Andhra Pradesh, Karnataka, Rajasthan and Tamil Nadu are highly priced. In India there are 43 granite processing units of which 12 are in Andhra Pradesh, 13 in Karnataka, 3 in Rajasthan, 14 in Tamil Nadu and 1 in Odisha. During the last five years exports have grown steadily by about 10% a year but this growth rate may increase even more in the near future. Thus, due to demand it is best to invest in this project. Few Indian major players are as under: • A B N Granites Ltd. • Aankit Granites Ltd. • Acropolis Granites Ltd. • Apple Granites Ltd. • Appollo Stones Ltd. • Aro Granite Inds. Ltd. • Ashok Granites Ltd. • Charminar Granites Exports Ltd. • Coromandel Granite Co. Ltd. • D S Q Granites Ltd. • Deccan Granites Ltd. • East India Granites Ltd. • Eastern Granites Ltd.
Plant capacity: Premium Granite:97,200 SQM per annum Standard Granite43,200 SQM per annum Commercial Granite:34,433 SQM per annum Sales of Local Granite:30,657 SQM per annumPlant & machinery: 878 Lakhs
Working capital: -T.C.I: Cost of Project:2147 Lakhs
Return: 28.00%Break even: 41.00%
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Bio-Plastic Bags and Containers from Corn Starch

Biodegradable plastics are mainly derived from corn, wheat and potato starch. Biodegradable plastics products are thermoplastic materials which are processed with the same machines traditionally used to process conventional plastics. Biodegradable plastic products physical and chemical properties are similar to those of traditional plastics, but it is completely biodegradable in different environments, just like pure cellulose. The demand for bio-plastics, both biodegradable and non-biodegradable, makes it one of the fastest growing thermoplastic product types globally. Global demand is expected to reach over one billion pounds by 2012. Currently, the biodegradable segment of bioplastics is the largest segment of the bioplastics category, but it is projected to be displaced by the nonbiodegradable bioplastics group of products, which may or may not be 100% derived from biomass. Bioplastic products are generally a degradable plastic in which the degradation results from the action of naturally-occurring micro-organisms such as bacteria, fungi, and algae. A biodegradable plastic product is made from normal polymer; the same used in making plastic products but at the same time it also contains newly invented biodegradable plastic additives. With increasing concerns over the use of plastics, sustainable alternatives to plastics are increasingly in demand. Biopolymers in general and bioplastics in particular, present one such sustainable alternative. Products and solutions based on bioplastics/biopolymers present exciting opportunities globally, and in India. Opportunities are present across a variety of industrial sectors that include packaging, water, beverages, insulation materials, specialty materials and more. The bioplastic containers market in India is projected to grow at a compound annual growth rate (CAGR) of 44.8% between 2009 and 2015. Although the Indian market is beset with challenges such as low awareness that are typical of emerging markets, these hindrances can be overcome by concerted efforts at promoting the long-term environmental benefits of using bioplastic. The biodegradable plastics containers market is expected to grow from USD 3.02 billion in 2018 to reach USD 6.12 billion by 2023, at a CAGR of 15.1% between 2018 and 2023. On the other hand, the global market, distribution channels and other government departments and various forces are actively promoting this new technology. In the next two to three years, the market demand for biodegradable plastic will gradually become stronger. Entrepreneurs who invest in this project will be successful. Few Indian major players are as under: • Arihant Industries Ltd. • Baroda Polyplast Ltd. • Jain Plastics & Chemicals Ltd. • Karwa Consolidated Mktg. Ltd. • Paradise Plastics Enterprise Ltd. • Shakun Polymers Ltd.
Plant capacity: Bio Plastic Bags (Per Bag 25 gms Size):360,000 Kgs per annum Bio Plastic Containers (Per Containers 28 gms Size):640,000 Kgs per annumPlant & machinery: 546 Lakhs
Working capital: -T.C.I: Cost of Project:2546 Lakhs
Return: 33.00%Break even: 88.00%
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Potato Flakes

Potatoes can be consumed in varied forms. In fact, it is a vegetable that can easily be combined with any other food item including other vegetables, cereals, pulses, meat and poultry. Potato flakes are the most important form of dehydrated potato products, which also include potato granules, pellets, powder, shredded and sliced potato. Dehydrated potato flakes are made by pressing cooked mashed potatoes onto a drum drier, which forms a sheet that can be broken up and ground to the required density. Potato flakes can be used anywhere, where one would use mashed potatoes. The potato flakes are widely used in the processing and manufacturing of the convenience foods, frozen foods, prepared foods for it flour thickening, oil and water-holding, incremental filling, Shell making and so on. The storage and transportation of the potato flakes are safe, the cost is low, and shelf life is longer. The demand of potato flakes is growing continuously in India due to their increased usage in fried snacks (Alu Bhujiya), extruded products, soup powders, pasta, fabricated chips and French fries. India presently imports about 3500 metric tonnes of potato flakes every year, although, there are four major flake manufacturers in the country. According to projections, India, which presently produces about 25 million tonnes of potatoes per annum, will be producing about 50 million tonnes per annum by 2020. Potato processing, therefore, will be essential to sustain the present rate of growth of production which is likely to improve further. A conservative estimate shows that nearly 10% of this projected potato production (5 million tonnes) will be accounted for in processing. The demand for potato Flakes has been continuously growing for the last decade, more so due to the application of the potato flake in a large way in the snack food industry. Thus, due to demand it is best to invest in this project. Few Indian major players are as under: • Asha Ram & Sons Pvt. Ltd. • Aurofood Pvt. Ltd. • Balaji Wafers Pvt. Ltd. • Basukinath Food Processors Ltd. • Indian Food Fermentations Ltd. • Iscon Balaji Foods Pvt. Ltd. • Mccain Foods (India) Pvt. Ltd. • Merino Industries Ltd. • Shubham Starch Chem Pvt. Ltd. • Southern Health Foods Pvt. Ltd.
Plant capacity: 3,000 MT per annumPlant & machinery: 1598 Lakhs
Working capital: -T.C.I: Cost of Project:2036 Lakhs
Return: 24.00%Break even: 42.00%
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Herbal Cosmetics (Shampoo, Conditioner, Face Wash, Body Wash, Massage Oil, Hair Oil, Face Cream, Massage Cream, Lip Balm)

Herbal Cosmetics, referred as Products, are formulated, using various permissible cosmetic ingredients to form the base in which one or more herbal ingredients are used to provide defined cosmetic benefits only, shall be called as “Herbal Cosmetics”. Herbal cosmetics are formulated, using different cosmetic ingredients to form the base in which one or more herbal ingredients are used to cure various skin ailments. The name itself suggests that herbal cosmetics are natural and free from all the harmful synthetic chemicals which otherwise may prove to be toxic to the skin. The most common reasons for using traditional cosmetics are that it is more affordable, more closely corresponds to the patient’s ideology, allays concerns about the adverse effects of chemical (synthetic) chemicals, satisfies a desire for more personalized health care, and allows greater public access to health information. The major use of herbal cosmetics is for health promotion and therapy for chronic, as opposed to life-threatening, conditions. Furthermore, traditional cosmetics are widely perceived as natural and safe, that is, not toxic. This is not necessarily true, especially when herbs are taken with prescription drugs, over-the-counter medications, or other herbs, as is very common. Indian consumers are increasingly transitioning towards herbal and natural offerings, especially in analgesics, cold, cough and allergy (hay fever) remedies and dermatologicals. More consumers are becoming health and hygiene conscious due to the prevailing health and wellness trend in the country. This is likely to hamper the herbal cosmetics market during the forecast period. Presently, herbal cosmetics are used for the treatment of skin and hair problems. These cosmetics have less side effects and are cost-efficient. Increase in trend of using herbal cosmetics with natural ingredients is projected to create opportunities in the herbal cosmetics market during the forecast period. The Herbal Cosmetic industry in India has been developing in a faster pace. It is observing influx of many national and international brands. The demand for herbal cosmetic products is provoked by changing lifestyles of the consumers, growing awareness among them regarding the harm caused to their bodies after usage of chemical-based cosmetics products, and increasing concern among the population to look good. Further, it is anticipated that the Indian Herbal Cosmetic industry is expected to reach INR 316 Billion by 2022, growing at a CAGR of 19% over the forecasted period of 2017-2022. Entrepreneurs who invest in this project will be successful. Few Indian major players are as under: • Abdos Oils Pvt. Ltd. • Absolute Aromatics Ltd. • Anchor Health & Beauty Care Pvt. Ltd. • Associated Industries Consumer Products Pvt. Ltd. • Avon Beauty Products India Pvt. Ltd. • Ayur Herbals Pvt. Ltd. (Transferred From Nct Of Delhi Andharyana) • Bajaj Consumer Care Ltd. • Cholayil Pvt. Ltd. • Dabur India Ltd. • Dey'S Medical Stores Pvt. Ltd. • Gayatri Herbals Pvt. Ltd. • J G Spices Ltd.
Plant capacity: Herbal Shampoo 250 ml Size Pack:2,400,000 Packs per annum Herbal Conditioner 250 ml Size Pack:1,200,000 Packs per annum Herbal Face Wash 250 gm Size Pack:300,000 Packs per annum Herbal Bady Wash 250 gm Size Pack:300,000 Packs per annum Herbal Plant & machinery: 52 Lakhs
Working capital: -T.C.I: Cost of Project:5327 Lakhs
Return: 35.00%Break even: 33.00%
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Moringa Oleifera (Drumstick) Powder

Moringa is a drought tolerant, medium-sized, evergreen tree that prefers warm, frost-free climates to flourish. Its tender leaves and twigs can be harvested at any time from a well-established, 1.5 to 2 meters tall plant. Taller plants bear cream-white, small size flowers in clusters throughout the season, which subsequently develop into long slender dark-green, three-sided, edible seedpods with tapering ends. Moringa is grown in home gardens in West Bengal and Odisha and as living fences in southern India and Thailand, where it is commonly sold in local markets. In the Philippines and Indonesia, it is commonly grown for its leaves which are used as food. Moringa is also actively cultivated by the World Vegetable Center in Taiwan, a center for vegetable research. In Haiti, it is grown as windbreaks and to help reduce soil erosion. The bark, sap, roots, leaves, seeds, oil and flowers of moringa are used in traditional medicine in several countries. The thickened root of the plant has been used as horseradish in the past. This practice is now discouraged, as the root contains alkaloids, which can prove fatal on ingestion. The leaves of the plant serve culinary purposes. They are used as the greens in salads and also as pickles for seasoning. The seeds of moringa are used to obtain oil, which can be used to cook a variety of dishes. Drumstick is one of the world’s most useful trees with potential to improve nutrition, boost food security, and foster rural development and support sustainable land care. From leaves and root to pods and seeds, all parts of the drumstick tree are highly edible. India exported moringa powder worth Rs 14.6 crore in 2015, compared to Rs 11.61 crore in 2014. The export of these was worth Rs 2.5 crore in January and February this year. The latest trend in the moringa market is the shift towards organic leaves and usage of solar driers. The export market has been increasing at the rate of over 30 per cent. Moringa powder have applications in neutraceutical, pharmaceutical and cosmetics industries. Today Moringa Market is estimated more than US$ 4 billion, which expected to cross US$ 7 billion by 2020 @ 9 percent per annum. Thus, due to demand it is best to invest in this project. Few Indian major players are as under: • A V P Marketing & Exports Ltd. • Arjuna Natural Extracts Ltd. • Ayurvedic Pharmaceutical Co. Ltd. • Ayurvedshri Herbals Ltd. • Chaitanya Pharmaceuticals Pvt. Ltd. • Flavex Aromats (India) Pvt. Ltd. • Ganga Pharmaceuticals Ltd. • Gayatri Herbals Pvt. Ltd. • Heal Ayurveda Pharmacy Ltd. • Hindustan Herbals Ltd. • Indian Medicines Pharmaceuticals Corp. Ltd. • Indus Biotech Pvt. Ltd. • Kerala Ayurveda Ltd. • Kerala Ayurveda Vaidyasala Ltd.
Plant capacity: 180,000 Kgs. per annumPlant & machinery: 61 Lakhs
Working capital: -T.C.I: Cost of Project:307 Lakhs
Return: 25.00%Break even: 63.00%
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Curcumin Extraction Unit

Curcumin is the main biologically active phytochemical compound of Turmeric. It is extracted, concentrated, standardized and researched. Curcumin, which gives the yellow color to turmeric, was first isolated almost two centuries ago, and its structure as diferuloylmethane was determined in 1910. Extensive research within the last half a century has proven that its renowned range of medicinal properties, once associated with Turmeric, is due to Curcumin. Curcumin is widely used to colour many foods. The Draft Codex General Standard for Food Additives provides an extensive list of such foods. Curcumin is listed for use in dairy products, fats, oils and fat emulsions, edible ices, fruit and vegetable products, confectionery, cereal products, bakery wares, meat and meat products, fish and fish products, eggs and eggs products, spices, soups, sauces and protein products, foodstuffs intended for particular nutritional uses, beverages, ready-to-eat savouries and composite foods. Use levels of curcumin are in the range from 5 to 500 mg/kg depending on the food category. Global curcumin market share is highly fragmented in nature due to the presence of several small and large scale manufacturers mainly concentrated in India. Cosmetic application expects the highest growth increasing at over 13% CAGR. Certain skin advantages owing to the presence of natural anti-oxidants in the products will drive curcumin based cosmetic products demand. India & China are the major supplier of Curcumin, The turnover of Curcumin could reach USD 94.32 million in 2022. Indian Curcumin market size accounted for over 81% of the overall Asia Paciffic revenue most of these as a food coloring agent.India contributes 80% of world production and roughly 60% of export. As a whole there is a good scope for new entrepreneur to invest in this business. Few Indian major players are as under: • Arjuna Natural Extracts Ltd. • Concert Spices & Exports Ltd. • Enjayes Spices & Chemical Oils Ltd. • Naturite Agro Products Ltd. • Sanat Products Ltd. • Sunrise Foods Pvt. Ltd. • Synthite Industries Pvt. Ltd.
Plant capacity: Curcumin Powder:15,000 Kgs per annum Turmeric Oil:6,000 Kgs per annum Deoiled Turmeric: 276,000 Kgs per annumPlant & machinery: 177 Lakhs
Working capital: -T.C.I: Cost of Project:369 Lakhs
Return: 28.00%Break even: 63.00%
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Absorbent Surgical Cotton (Cotton Rolls)

Surgical cotton is also known as absorbent cotton” or “cotton wool”. Surgical/ Absorbent cotton is cleared de-oiled and bleached cotton packed in different sizes. Since Surgical/Absorbent cotton is a material which comes in direct contact with the human body, its quality is very important and should satisfy the required pharmaceutical parameters. Either virgin cotton or waste cotton can be used as raw material. Comber waste cotton is desirable in case of waste cotton. Surgical/Absorbent cotton is widely used in hospitals, clinics, health centers and pharmacies for medical purposes. It is also used in beauty salons, business organizations and households for various purposes. Surgical/Absorbent cotton is mainly used for sanitary purposes and surgical operations as well as for ordinary daily use. It is also usually needed by women during their menstruation period that reoccurs at least once a month. The demand of Surgical Absorbent Cotton is directly related with the increase in population and expansion of public health services. The demand for Surgical Absorbent Cotton increases with the increase in population and number of hospitals, dispensaries, nursing homes, health care centers etc. The demand for absorbent cotton is directly related with the development and expansion of health facilities in the country. The Federal and Regional Governments have given high attention for expansion of health facilities to increase the coverage. Hence, considering the population growth and the high attention given by the Federal and Regional Governments, the demand for absorbent cotton is assumed to grow by 10%, annually. The demand for absorbent cotton in India is estimated to be about 2 million bales (of 170 kg each) per year. On the other hand, the small scale industries that manufacture absorbent cotton find it difficult to source short staple cotton. For example, the industries in Maharashtra and Madhya Pradesh are sourcing short staple cotton at high price from Rajasthan or the Northeastern part of India. So there is an imminent need to create an interface and a common platform between Indian cotton farmers as well as absorbent cotton industry. Thus, due to demand it is best to invest in this project.? Few Indian major players are as under: • Brisk Surgicals Cotton Ltd. • Jindal Medicot Ltd. • Lavino Kapur Cottons Pvt. Ltd. • Mohini Health & Hygiene Ltd. • Phoenix Surgicare Pvt. Ltd. • Precot Meridian Ltd. • Vandana Surgi Pharma Pvt. Ltd.
Plant capacity: 450,000 Kgs. per annumPlant & machinery: 399 Lakhs
Working capital: -T.C.I: Cost of Project:636 Lakhs
Return: 26.00%Break even: 48.00%
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Information
  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
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  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.

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