2-Forest & Herbals

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    Madhya Pradesh:Means Business

    Forest, Environment & Herbal

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    Overview

    MP is the second largest State in the Country stretching over 308,000 sq kms.

    The State is blessed with large mineral resources of coal, diamond, limestone, methane etc.

    MP is among the top 4 states of the Country for industrial investments.

    Per capita GSDP USD 369**

    Manufacturing sector USD 8.5 bn**

    (Registered & Unregistered)

    Gross state domestic product (GSDP) USD 23,983.63 Mn**

    Average growth rate 5.5% per annum

    Advantage MP

    Total electricity generation capacity 6,449.25 MW*

    Indias first greenfield SEZ Indore SEZ

    Industrial Centers 8

    The State is centrally located

    Investor friendly Government policies

    Madhya Pradesh has one of the upcoming industrial base in India

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

    Madhya Pradesh (MP) State that means businessOverview

    MP is rich in low grade coal suitable for power generation.

    Potential of hydro-energy generation.

    Installed power capacity (MPs share)

    Hydel Power Generation: 852.7 MW*

    Thermal Power Generation: 2,147.5 MW*

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

    *Ministry of Power (powermin.nic.in

    ) **Source: Indiastat.com (as on 23 Feb 2006)

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    ROADNETWORK

    AIRPORTS

    RAILWAYNETWORK

    The State is well connected with the rest

    of India with almost 425 trains passing

    through the State on a daily basis. Of

    these 175 trains pass through the State

    capital Bhopal alone.

    The total length of roads spanning MP is

    67,600 kms.**

    National highways of 5,200 kms runthrough the State.*

    18 National highways including trunk

    routes of Delhi-Mumbai, Delhi-Chennai,

    Delhi-Bangalore, Delhi- Hyderabad.

    The total length of State highways in the

    State is 9,885 kms.**

    Convenient linkages to western ports i.e.

    Kandla Port, Jawahar Nehru Port Trust.

    25 airstrips.**

    Convenient air links from key Indiancities like Delhi & Mumbai to Bhopal,

    Jabalpur, Gwalior, Indore andKhajuraho.

    5 operational airports.

    Indore airport has the capability ofhandling international cargo.

    An international airport proposed inBhopal.

    Enabling Infrastructure

    MP IS CENTRALLY LOCATED AND WELL

    CONNECTED WITH ALL MAJOR CITIES IN INDIA

    *Source: Department of Road Transport & Shipping (morth.nic.in) **Source: www.destinationmadhyapradesh.com

    INDORE BHOPAL

    JABALPUR

    GWALIOR

    KHAJURAHO

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    Third largest producer of

    cement in India*

    12 blocks with reserves

    totalling 2,585 million tons

    of coal has been identified

    Largest producer of pulses

    and oilseeds in the Country

    (~75% of soyabean

    production)

    31% of the State under forest

    cover with a largely unexploited

    species of rare, valuable

    medicinal- herbal plants

    Over 2,000 kms of roads

    being developed with

    Private Partnership (BOT)

    Over 18,000 technical

    graduates and 230,000

    graduates add to workforce

    each year

    Over 144 BCM of coal bed

    methane reserves available

    Over100 agricultural farms with

    an area of over 20,000 acres is

    available on lease to investor

    Indias 1st operational

    Greenfield SEZ at Indore

    Favourable climatic

    conditions for cottonand over40,000 power-

    looms are driving the

    textile industry

    Availability of coal and natural gas

    (G.A.I.L pipeline) along with support

    from Government to make investment

    in Thermal PowerPlants lucrative

    Offers diverse tourists destinations

    catering to various segments of

    tourism such as religious (Bhojpur),

    eco/ adventure (Panchmari), heritage

    (Sanchi, Khajuraho) tourism etc.

    a ya ra es : re erre nves men

    Destination

    Various blocks available

    for power, cement, ironand steel units

    *Source:www.mpsidc.org & Brochure: MP Means Business

    http://www.mpsidc.org/http://www.mpsidc.org/http://www.mpsidc.org/
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    0%

    20%

    40%

    60%

    80%

    100%

    Vishakapatnam

    Chennai

    Greater Noida

    Chandigarh

    Jaipur

    Indore

    0

    50

    100

    150

    Mumbai

    Delhi

    Bangalore

    Chennai

    PuneHyderabad

    Indore

    Bhopal

    Ahemadabad

    Mumbai

    (780 Kms)(MPV - 1000) Pune

    (800 Kms)(MPV - 206.51)

    Bangalore(1400 Kms)(MPV - 254.52)

    Chennai

    (1430 Kms)(MPV - 362.84)

    Hyderabad

    (840 Kms)(MPV - 257.9)

    Delhi

    (740 Kms)(MPV - 789.5)

    Ahmedabad

    (570 Kms)

    (MPV - 220.63)

    Kolkata

    (1350 Kms)(MPV - 613.19)

    Key Markets

    (Distance FromBhopal)

    MPV MarketPotential Value

    Source: (Reference: RK Swamy)

    MP: The Right Place with the Right Environment

    MP is centrally located. The State is at an easy distance from

    all the key consumer markets in the Country.

    DESTINATION MADHYA PRADESH

    - Distances rounded off**Source: India Today (September 06 Issue)

    Fastest mover* in overall

    performance among the

    big States in the Country.

    Fastest mover in agriculture

    Fastest mover in

    infrastructure development.

    Ranks 2nd in terms of

    governance.

    Ranks 3rd in terms of law &

    order

    Cost of skilled labour is USD

    2.4/day vis-a-vis USD 3.5

    USD 4.0/day in metros

    * Fastest mover is the State where the rate of

    improvement between 2003 & 2006 was greater

    than that between 1991 & 2003

    Bhopal and Indore have substantial cost

    advantages, even when compared to other Tier

    III and IV cities.

    Savings in Office Space Rates

    (A comparison of rates in Central Business Districts)

    The cost of land is one of the lowest in the Country.

    Even central hubs such as Indore and Bhopal fare

    well against other cities in terms of low land cost.

    (Estimated Values for Multi-product SEZs)

    Savings in Land Cost

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    n us r a o cy: a a ys or e

    InvestmentsThe Government of MP has devised an investor friendly industrial policy,

    which is aimed at achieving global competitiveness. The policy emphasizes

    on industrial growth in the state through adopting cluster approach,

    establishing specialized infrastructure and offering favourable incentives.

    The main thrust of this policy is:

    Establishment of a Madhya Pradesh Trade and Investment

    Facilitation Corporation which would take decisions about

    rationalization of taxes, facilities of mega projects and other related

    matters.

    Enacting an Industrial Facilitation Act and to change the rules of

    business with a view to make single window system decisive and result

    oriented.

    Developing infrastructure for supporting the identified industrial

    clusters

    Reviving closed down/ sick industrial units by granting special packages.

    Attractive incentive schemes.

    CLUSTER APPROACH

    Indore Pharmaceutical, Textile, Food

    Processing, IT, Auto Components

    Bhopal Engineering, Biotechnology, Herbal,IT, Food Processing

    Jabalpur Garment, Mineral, Forest & Herbal,Food Processing

    Gwalior Electronics, IT, FMCG, Engineering,Food Processing

    Rewa Refractories, Lime Stone, Forest Based

    Sagar Mineral Processing

    Special package for Mega Projects on project basis by apex levelinvestment promotion empowered committee headed by the ChiefMinister.

    Industrial investment promotion assistance 50% to 75% of commercialtax for 3-10 years

    Concessional registration charges and stamp duty exemption forTerm Loans.

    Interest subsidy on term loan for 5 years @ 3% to 5%.

    For thrust sector industries, 25% capital subsidy would be providedlimiting up to a maximum ofUSD 56,000

    Land on 75% concessive rate for Mega Projects limited to USD 4.4million.

    Entry tax exemption for 5 years.

    5 years electricity duty exemption on captive power generation 15% capital subsidy to SSI up to USD 33,000 in backward areas

    Infrastructure grant up to USD 0.22 million crore for developing privatesector industrial parks

    Partial reimbursement for Project report, ISO Certification, Patent andTechnology Purchase cost

    SPECIAL INCENTIVES

    SPECIALIZED

    INFRASTRUCTURECrystal IT Park Indore

    Food Parks Mandsaur, Khargone, Chhindwara,

    Hoshagabad, Mandla and Bhind

    Stone Park Katni

    Herbal Park Rewa

    Granite Park Chhatarpur

    Life Sciences Project Bhopal

    Apparel Park Indore (SEZ)

    Gems & Jewellery Park Indore

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    Area Developed: 2,492 Hectares

    Allotted: 1431 Hectares

    Units established: 575

    Major Groups: Tata, Ranbaxy, Eicher,

    Bridgestone, Hindustan Motors, Kinetic,

    SRF, S Kumars, Gajra, Nicholas Piramal,

    Indorama, IPCA, Bhilwara

    Special Infrastructure: SEZ, Crystal IT

    Park, Food Park, Apparel Park

    In a bid to build a competitive environment; industries and their ancillaries would be promoted in clusters based on the availability of raw materials,

    skilled labour and market potential. Under this Industrial Policy through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs)

    scheme, the State Government, has identified industrial clusters. Many of the industrial giants have their establishments in these areas, however44% of

    developed area is still untapped and open for investment.

    Total developed area 7,147Hectares

    Total allotted area 3,089Hectares

    Total unitsestablished

    1,360

    Growth centres 19

    o ng us ness a e asy rougMPAKVN

    INDOREAKVN

    Area Developed: 1,330 Hectares

    Allotted: 618 Hectares

    Units established: 286

    Major Groups:HEG, Crompton

    Greaves, P&G, Godrej, Lupin, IFB,

    Oswal, Nahar

    Special Infrastructure: ICD, FoodPark

    Area Developed: 2,262 Hectares

    Allotted: 800 Hectares

    Units established: 326

    Major Groups: JK, Surya Roshini,

    Godrej, Grasim, Cadbury, Hotline,

    Crompton Greaves

    Special Infrastructure: ICD, FoodPark

    Area Developed: 273 Hectares

    Allotted: 115 Hectares

    Units established: 121

    Major Groups: Birla, Jaypee

    Special Infrastructure: Integrated

    infrastructure development centres

    (IIDC)

    Area Developed: 790 Hectares

    Allotted: 125 Hectares

    Units established: 52

    Major Groups: Raymond, Hindustan

    Petroleum, PBM, Ayur

    Special Infrastructure: Stone Park,

    Food Park

    BHOPALAKVN

    GWALIORA

    KVN

    JABALPURA

    KVN

    REWAAKVN

    Pithampur, Kheda,Dewas, Maksi,Megh Nagar

    Malanpur, MalanpurPhase II, Banmore,Chainpura,Siddhgawan,Pratappura

    Rewa, Waidhan

    Borgaon, Maneri,Purena

    Mandideep,Pillukhedi,

    Mandideep Phase II

    Source: MPSIDC

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    SectorProfile

    Forest, Environment &Herbal

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    MP: Forest Capital of India

    MP : Forest Snapshot

    Herbal Market Scenario

    MP : Herbal Potential

    Concessions and Facilities for Herbal Industry

    Investment Destination - Opportunities in Herbal

    Investment Destination - Opportunities in Forest & Environment

    MP: An Investment Destination

    Way Forward

    ec or ro e : ores s, nv ronmenHerbal

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    Madhya Pradesh has a forest area of 94689.38 sq. km which

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

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

    area among all the States in India.

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

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

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

    and Miscellaneous Forests. Further, Bamboo bearing areas are

    widely distributed in the State.

    Forest based industries are key contributor to the States economy and

    provide employment to a large part of the population.

    In 2004-05 forests and logging contribute 2.1% to the State GDP.

    The total growing stock (volume of timber / wood) in MP is 50 mn cu.

    m valued worth USD 55.5 bn.

    Reserved 65.36%

    Protected 32.84%

    Unclassified 1.7%NonForest

    69%

    Forest

    31%

    India90.62%

    MP: Forest Capital of India

    MP

    9.38%

    MP

    Forests are valuable sources of various medicinal herbs and aromatic plants

    and are sole source of woody and non woody products such as timber, gums

    and resins etc.

    Forest Map of MP

    Classification of MP land Mass

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    MP: Forests Snapshot

    113

    107

    122

    109

    95

    100

    105

    110

    115

    120

    125

    2002-03 2003-04 2004-05 2005-06

    0

    0.5

    1

    1.5

    2

    2.5

    3

    3.5

    4

    4.5

    5

    2001-02 2002 -03 2003 -04 2004-05 2005-2006 (till

    5/06)

    0

    0.5

    1

    1.5

    2

    2.5Timber

    Fuel woodBamboo

    Key Tree Species

    Tinsa (Ougeinia Ogeinensis)

    Lendia (Lagerstroemia parviflora)Khair (Acacia catechu)

    Haldu (Adina cordifolia)Bija (Pterocaropus marsupium)

    Saja (Terminalia)Sal (Shorea robusta)

    Salai (Boswellia serrata)Teak ( Tectona grandis)

    Production of Timber, Fuel wood and Bamboo

    LakhCuM

    Lakh

    nt

    Revenue From Sale of Forest Products

    *One standard bag of Tendu Leaves in Madhya Pradesh means 1000 bundles of 50 leaves each.

    MPs forest reserves are a rich source of Timber, Fuel wood and

    Bamboo. They are also a key source of minor forests products such

    as Tendu, Harra, Sal Seed and Gums.

    MP is the largest producer of Tendu leaves in the country which is

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

    annual production of Tendu Leaves in the state is around 2.5 mn

    standard bags*.

    MP accounts for nearly 25% of all the Tendu Leaves produced in India

    US$ Mn

    Key Forest Products

    Woody Products Nationalised Minor ForestProducts

    Non-Nationalised Minor ForestProducts

    Timber

    Small Timber

    Fuel Wood

    Bamboo

    Tendu Patta

    Sal Seeds

    Kullu Gum

    Harra, All other gums, Satawar,Kalmegh, Giloe, Achar, Arjun Bark,Aonla, Gudnar, Chiratia,Nagarmocha, Beheda, Bael,Bhilwa, Mahua, Van, Tulsi, (morethan 155)

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    Herbal Market Scenario

    As per the estimates of the WHO, nearly 80% of the worlds population depends on herbal

    medicine for their primary health care requirements.

    Global trade in medicinal plants is over USD 60bn in 2004 with an annual growth rate of

    15%.

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

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

    Exports of Ayurvedic medicines have reached a value of USD 100 million a year. Of the

    total exports, about 60% is crude herbs, 30% finished product shipped abroad for direct

    sales to consumers, and the remaining 10% is partially prepared products to be finished inthe foreign countries.

    The Ayurvedic industry in India is dominated by around 30 companies. Key suppliers like

    Dabur, Baidyanath, and Zandu, together contribute about 85% of India's domestic

    market. Charak Pharmaceuticals, Vicco Laboratories, Emami Group, Aimil

    Pharmaceuticals Ltd, Viswakeerthy Ayurvedic Pharmacy etc are few of the well-known

    names in this sector.

    Of late, leading players in the FMCG segment like the Hindustan Lever Limited (HLL)

    are increasing their focus on Ayurveda.

    Contract farming of medicinal plant species which are in demand in the foreign market is

    seen as the key growth driver of the domestic herbal industry.

    20502004

    USD 60 bn

    USD 5 Tn

    Global Demand of Medicinal Plant

    Source: WHO Estimates

    With demand of herbal products

    increasing globally, the market

    presents substantial business

    opportunities for herbal companies in

    India.

    Partially

    Prepared10%

    Finished

    Products

    30%

    Crude herbs

    60%

    Break up of Ayurvedic Export Market

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    50

    5050

    50

    5 0

    10 0

    10 0

    10 0

    20 0

    20 0

    20 0

    50 0

    50 0

    10 0

    1 00 2 00

    0 2 0 0 4 0 0 60 0 8 00 1 0 0 0 1 20 0 14 0 0 1 60 0 1 80 0 2 00 0

    B a c h

    S a rpa gan dha

    G u d m a r

    N a garm o tha

    G i l o y

    S hataw ar

    K eo kand

    E s s e nt ia l O i ls

    C h an d ras hur

    K a lm egh

    Aloe Ve ra

    As hw aga nda

    Is ab gol

    B el

    S a fed M us l i

    is ab gol

    Estimated Production Potential of key Medicinal Plants

    MP: Herbal Potential

    With 11 Agro-climatic zones out of the total 16 in the country, MP is

    well suited for cultivation of a large number of Medicinal and Aromatic

    plants (MAPs).

    The production of MAPs in the State in 2004-05 was 20,000 tonnes

    and is estimated to rise to 40,000 tonnes by the year 2009.

    MPs share in the national production of MAPs was 6.25% in 2004-05

    and is expected to rise to 8.63% till 2009.

    30% of the demand of Indian herbal industry is met by the herbal

    collections centers of Madhya Pradesh.

    MP is the natural habitat for over 50% of the herbs used in thepharmaceutical industry and is the key source of raw material to

    various herbal processing units across the country. The Government is

    keen to develop MP as the key processing center for herbal products.

    0

    5000

    10000

    15000

    20000

    25000

    3000035000

    40000

    45000

    1999-2000 2004-2005 2008-2009

    Tonnes

    Increasing Annual Production of MAPs in MP

    5.76%6.25%

    8.63%

    0.00%

    1.00%

    2.00%

    3.00%

    4.00%

    5.00%

    6.00%

    7.00%8.00%

    9.00%

    10.00%

    1999-2000 2004-2005 2008-2009

    MPs Rising Share in National Production of MAPs

    MT

    oncess ons an ac es or er a

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    oncess ons an ac es or er aIndustryTo facilitate the development of herbal industry, the Government of MP

    extends various concessions and facilities to industries.

    The key concessions offers are capital investment subsidy, interest

    subsidy, concessional land rates, industrial investment promotion

    assistance and entry tax exemption etc.

    Exemption from electricity duty for 5 years

    Exemption from stamp duty/registration charges

    New industries are exempted from paying entry tax for five years from

    the date of first purchase of raw material

    Partial reimbursement of expenditure incurred on quality certifications,

    ISO-9000, patent filing, BIS etc by the industries in the state. Units with fixed capital investment of USD 2.2 million and above would

    be treated as mega projects. 5 to 20 acres of land would be allotted to

    such units at a concessional rate of 25% of the stipulated rate. Further

    all such mega projects shall be eligible for special incentive package on

    case to case basis

    An industrial investment promotion assistance equivalent to 50%

    amount of Commercial tax and Central Sales Tax (excluding

    Commercial Tax on the purchase of raw materials) deposited by the unitin the preceding year, would be given to the industry having fixed capital

    investment between USD 0.2 million to USD 2.2 million for 3 years in

    advanced district and for 5 year in backward district. The rate of

    assistance is 75% for investment above USD 2.2 million.

    Capital Investment Subsidy

    Category of district % of subsidy on fixedInvestment

    Upper limit of subsidy(USD)

    Backward A 15% 11,000

    Backward B 15% 22,000

    Backward C 15% 33,000

    Special capital subsidy at 25%. To a maximum of USD 0.02-0.05 as per category, ifthe investment is more than USD 0.11mn

    Interest Subsidy

    Category of distr ict Durat ion(Years)

    Interest Subsidy Upper limit of subsidy(USD)

    Backward A 5 3% 22,000

    Backward B 6 4% 33,000

    Backward C 7 5% 44,000

    No Industries Blocks 7 5% 44,000

    Industrial Investment Promotion Assistance

    Category of district Minimum eligible fixed capital investment(USD)

    Duration(Years)

    Advanced 5.5 million 3

    Backward A 4.4 million 5

    Backward B 3.3 million 7

    Backward C 2.2 million 10The Government is keen to harness the natural riches of MP and is

    vigorously promoting the development of herbal industry in the State.

    nves men es na on ppor un es n

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    nves men es na on- ppor un es n

    Herbal

    Key Drivers for Herbal Industry

    Abundant availability of rawherbs

    Abundant cultivable landavailable

    Mass scale cultivation of largenumber of species alreadyinitiated

    Land available for industrialoperations at economic rates

    Single window clearance systemfor drug license

    Lack of competition in herbalprocessing

    Viable Herbal Processing IndustrialOpportunities in MP

    Aloe Vera gel extraction and spray driedpowder manufacturing units

    Herbal extraction units

    Fractional Distillation units for essential oilproduction and refining

    Ayurvedic drug formulation units

    Food and vegetable colours and dyes

    Production of concrete and absolute from

    flowersPrimary processing centers for raw herbs

    Isabgol dehusking units

    Herbal cosmetics production units

    Perfume production units

    Expeller units for producing Bio-diesel andNeem oil

    Reimbursement of 50% of the total fees incurred on hiring technical

    consultancy for getting GMP certification. With an upper limit ofUSD 22,000 per project.

    Forparticipation in the international trade fairs and exhibitions,

    entrepreneurs of herbal industries will be given financial assistance

    of 50% on one half of the stall charges.

    Registration fees charged by the importing countries for import of

    herbal products will be reimbursed up to a maximum of USD 1100

    and air fare to a maximum of USD 1100.

    All concessions and facilities that are available to industrial units inthe backward districts will also be extended to units located in the

    developed and advanced district such as Indore and Bhopal.

    Relevant provisions of labour laws applicable in Special

    Economic Zones will be applicable for existing and upcoming

    herbal parks as well as the herbal and Ayurvedic industries.

    Stamp duty waiver for Herbal and Ayurvedic industries in case

    of change in name, collaboration, inclusion of partners,

    reorganizations and for amendment in the lease deed for the next 3

    years and also for entering into agreement with financial institutions

    for getting financial assistance.

    Small scale pharmaceutical industries will be given priority under

    store purchase rules

    Fast track clearances for setting up pharmaceutical and herbal

    industries.

    Special incentive Package for Herbal Industry MP is the key supplier of raw material to the herbal industry across the

    country. While MP has several success stories in the cultivation and

    collection steps of the value chain; substantial opportunities now exist

    for entrepreneurs in the post harvest process such as

    manufacturing/processing, quality testing as well etc.

    To promote the growth and development of herbal industries in the

    State, the Government of MP has announced a special incentive

    package for the herbal industry.

    ppor un es n ores s

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    Being the largest producer of Tendu leaves; MP is strategically the most

    suitable location in the Country for manufacturing/ processing of tobacco based

    products. The companies located in the State can save substantial costs on raw

    material and transportation by establishing processing units for the production

    ofBiddi and related products.

    The forests in the State are a key source of high quality timber yielding variety

    ofTeak and Sal which forms the backbone of the furniture industry. Companies

    can set up the furniture units in the State and leverage following key location

    advantages:

    1) Proximity to raw material

    2) Proximity to target markets

    3) Proximity of ports for exporting products

    Given its vast forests landscape and scenic vistas, eco-tourism and adventure

    tourism opportunities are abound in MP. The State has nine natural parks and

    25 sanctuaries, which present an immense potential for tourism and hospitality

    industry to flourish.

    Significant opportunities exists for the development of handicraft industry

    specially for the production of Bamboo based goods. Opportunities for

    private participation are immense as there is a high demand for handicrafts

    products in the foreign countries as well as in the domestic market. Further,

    companies can leverage the availability of local inexpensive labour with high

    skill sets in production of various forests goods.

    Nagpur

    (350 Kms)

    Lucknow

    (680 Kms)

    Kanpur

    (600 Kms)

    Mumbai, JNPT

    (780 Kms)

    Pune

    (800 Kms)

    Bangalore

    (1400 Kms)

    Chennai

    (1430 Kms)

    Bhubaneshwar

    (1200 Kms)

    Hyderabad

    (840 Kms)

    Delhi

    (740 Kms)

    Jaipur

    (580 Kms)

    Ahmedabad

    (570 Kms)

    Kolkata, Haldia

    (1350 Kms)

    Patna

    (910 Kms)

    Key Markets

    (Distance From Bhopal)

    Vishakapatnam

    (1310)

    Kandla

    (933)

    Key Ports

    (Distance From Bhopal)

    Sanctuaries

    Madhya Pradesh is Strategically

    Placed for Forest Based Products

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

    - ppor un es n ores s

    Environment

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    Environment protection and conservation is one of the key concerns of the State

    Government. All the envisaged development plans in the state would result in

    heightened commercial activities which is likely to put severe stress on the State

    environment.

    Due to the rapid industrialization of the State, the effluents discharge from the

    companies specially chemicals & pharmaceuticals, will be a key environmental

    concern.

    Per capita waste generation in major cities in MP ranges from 0.20 Kg to 0.60 kg.

    The urban local bodies spends between USD 11 to USD 33 per ton on solid waste for

    collection, transportation, treatment and disposal.

    60-70% of the total amount is spent on collection, 20-30% on transportation and less

    than 5% on final disposal. Most of the methods used by the municipal corporation are

    unscientific and lack safe disposal techniques.

    The State Government is keen on implementing key environmental protection plants

    Which includes building up of collection stations for solid waste.

    Significant opportunities exists for the commercial waste management companies in

    the State both for solid waste management and also for the effluent treatment plants.

    Tobacco Industry

    Timber Production

    Paper Pulp

    Eco-Tourism

    Furniture Industry

    Handicrafts

    Bamboo products

    Bio-diesel

    Solid Waste Management

    Recycled Goods IndustryK

    eyInvest m

    entOpp

    ortunities

    To utilize the large amount of waste land in

    the State, the Government of MP has drawn

    up plans to convert them into plantation

    center.

    Paper pulp producing trees would be planted

    in next 5-7 years over one million hectares of

    waste land.

    The opportunities for commercial paper

    production in the state is pegged at USD 1.5-2

    bn.

    - ppor un es n ores s

    Environment

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    Way Forward

    In collaboration with the international FMCG major Hindustan LeverLtd , the

    Government of MP has initiated efforts to promote the herbal industries of the State.

    It has launched its proprietary brand Vindhya Herbal to market various herbal

    formulations that are being produced in the state. All products are processed

    employing current Good Manufacturing Practices.

    Aonla Murabba Aonla Supari Aonla Powder Ashwagandha powder

    Aonla Candy Aonla Aschar Aonla sherbut Amaltas powder

    Arjun Powder Apamarg powder Bael Pulp Brahmi

    Baichandi Bhringraj powder Bavachi Ayurvedic face packs

    Banjira Baibidang Baheda Bach

    Bijasar Bark powder Bija glass (Tumbler) Babul Pods Powder Bhui Aonla Powder

    Chiroji ( Achar fruit) Dronpushpi powder Dhaora Gum Triphala

    Gorakhmundi Giloy Gokharu Powder Gudmar powder

    Gulbakavali ark Honey Hadjod powder Indrajau

    Imli Kalmegh Karanj bark powder Jamun seed powder

    Keoti Bark Konch powder Kamarkas Kulanjan

    Maha Neem Bark Nirgundi Punarnava Mulethi

    Palas Flower Rosha oil Shatawari pppowder Safed Musli powder

    Senna Shankhpushpi powder Tulsi Cosmetic oil/ shampooKeyProduct s

    Promo

    tedunderVindh

    yaHerbal

    Brand

    Success Story : Vindhya Herbal The Government is keen to develop MP as the

    key processing center for herbal products. The

    natural advantage of the State coupled with

    government initiatives makes MP an ideal

    destination for investment.

    The success of Vindhya herbal has

    generated ample confidence among the

    privates players to invest in the business

    opportunities presented by the herbal

    industry.

    The key opportunities of investments are in

    contract farming, contract collection centers,

    herbal processing units, collaborative

    manufacturing and setting up high quality

    testing laboratories for testing medicinal plants

    and products.

    MP provides ample opportunities across the

    value chain of Herbal Industry

    ContractFarming

    Setting BigProcessing Units

    CollaborativeManufacturing

    Government 3-tier Strategy

    for Development of Medical &

    Aromatic Plants Industry

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    Way Forward

    MP has been successful in attracting several large

    companies in the forest & forest based products segment.

    By investing in the MP an investor can join the club ofcompanies such as Dabur, HLL, Baidyanath, Lupin, ITC

    etc. This truly reflects upon the bio-diversity of the state

    and the investor confidence.

    There are over 32 contract farming companies operating in

    the state and this figure has been rising substantially in the

    recent past.

    The increased production of certain products is the

    indicator of increased activity in the state. For instance, the

    production of lac has increased from 3,000 quintals in 2003

    to 40,000 quintals in 2005.

    There is also scope for teak and sal based furniture

    business in the state.

    The growth of the sector is likely to continue as a result of

    increased demand for derived products of forest produce.

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

    KeyKeyInvestmentInvestment

    OpportunitiesOpportunities

    JoinTh

    eC

    lub

    Vijay Herbals &Essential Oils

    Kasturi HerbalFarm

    Sanwaria HerbalFarm

    Devika Herbal

    OmniPharmaceuticals

    Gewit Herbal EH

    Herbal

    Forest&E

    nvironmen

    tOpportunity Key Locations

    LacProcessing

    Seoni

    Annupur

    Honey

    Processing

    Sheopur

    Kalan

    Wild MAPS Jabalpur

    Katni

    Opportunity Key Locations

    Teak & Sal

    (Furniturefactory)

    Chattarpur

    Bamboo Balaghat

    Jetropa -Bio-dieselPlantations

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    Madhya Pradesh Minor Forest Produce Co-operative

    Federation

    Center for Entrepreneurship Development

    Government of Madhya Pradesh

    www.mfpfederation.com

    www.cedmapindia.com

    http://www.mpgovt.nic.in

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

    Connecting Further