Agro & Food Processing - Gujarat · Egg Powder Unit Agro & Food Processing Government of Gujarat....

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Establishment of Egg Powder Unit Agro & Food Processing Government of Gujarat

Transcript of Agro & Food Processing - Gujarat · Egg Powder Unit Agro & Food Processing Government of Gujarat....

Establishment ofEgg Powder Unit

Agro & Food ProcessingGovernment of Gujarat

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Contents

Project Concept 3Market Potential 5Growth Drivers 7Gujarat – Competitive Advantage 8Project Information 10- Location/ Size

- Infrastructure Availability/ Connectivity

- Raw Material/ Manpower/ Machinery

- Potential Collaboration Opportunities

- Key Considerations

Project Financials 15Approvals & Incentives 17Key Department Contacts 18

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Project Concept

Egg powderAn egg consists of 3 main parts: the shell (10%), the albumen or eggwhite (60%) and the yolk (30%). An average egg weighs about 55-60gram. Egg, in full or parts, is used to prepare powder used in differentindustries:

Whole egg powder (WEP) is used in classical foodapplications where rising qualities are not essential,such as crackers, cookies and pasta.

Egg yolk powder (EYP) is used as a substitute forfresh egg yolk to obtain colour, texture, and emulsioncapacity. Egg yolk powder is most frequently used inmayonnaise, dressings, sauces and croissants.

Egg albumen powders (EAP) is used in a range ofitems from fish, meat, and potato preparations tobakery and pastry products.

Manufacture of dried egg powder starts with breaking of eggs and removing egg-shells. Afterremoval of shells, the mixture is filtered and stored in storage tanks at about 4oC and then it istaken to tabular heater, wherein it is dried at about 65oC for 8 to 10 minutes and it is filtered andpassed to high pressure spray drier with the help of high pressure pump. The material whichcomes out of high pressure spray drier is not only in dried form but also in powder form, which isthen packed in polylined boxes. The average yield is around 80%. A typical manufacturing processflow is shown below:

Egg processing

p gnot onllllllllyyyyyyyyyyyy yyy inininininiii driedge yyyyiyiyiyiyyyiyiyiyyyyyyyyiiyyiyyy elelellleleeee ddd dddd isssisi a aaaaaaaaaaaaaaaaaaaro

BreakingDried shell packing

and storage

Whole egg� Filtering� Cooling� Liquid whole egg holding� Spray drying

Egg yolk� Filtering� Cooling� Liquid whole egg holding� Spray drying

Egg albumen� Filtering� Cooling� Liquid whole egg holding� Spray drying

WEP EYP EAP

� Packing� Storage below 20oC� Storage at ambient

temperature

� Packing� Storage below 20oC� Storage at ambient

temperature

� Packing� Hot room storage at

ambient temperature

The conceptThe project envisagessetting up of EggPowder ManufacturingUnit based on the rawmaterial strength ofGujarat.

The manufacturing unitcan focus onproduction, processing,marketing, etc.

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Project Concept

Global market overview

Indian market overview

� The largest producer of egg is Andhra Pradesh (IncludingTelangana) which produces 30.5% of the total eggproduction in the country.

� Tamil Nadu ranks second, producing 18.9% of the eggproduction.

� Maharashtra, West Bengal and Haryana hold the nextthree ranks producing 6.5%, 6.4% and 5.8% of the totalproduction respectively.

� Gujarat ranks 11th in the country in terms of egg production,contributing about 2.1%.

India's egg products industry relies almost completely on exports of egg powder, with the mainmarkets being Europe and Japan. Andhra Pradesh and Tamil Nadu account for almost half of thecountry’s egg production.

Top egg producers 5-yr average (2009/10-2013/14)

World egg production (2013)Region Prod (million tonnes)

Asia 40.0

Americas 14.0

Europe 10.9

Africa 3.1

Oceania 0.3

World 68.3

� Asia dominates the global egg production, accounting for around 60% of the total, followed byAmericas and Europe.

� Asia encompasses five of the top 10 national producers of eggs, with India and Japan at thirdand fourth positions in the world ranking.

� Country wise, China leads the egg production globally, followed by the US and India.� However, China’s growth rate was slow as compared to the growth achieved by other Asian

economies - India, Indonesia, Pakistan and Malaysia.� Around the world, consumption of eggs is also increasing. This increase is particularly notable in

developing countries where changing diets have people consuming a greater number of caloriesfrom protein sources like poultry meat and eggs.

Source: Global poultry trends 2014

Top 5 egg producing countries (2013)Country Prod (million tonnes)

China 28.8

USA 5.6

India 3.8

Japan 2.52

Mexico 2.51Source: WATTAgNet, accessed 28 July 2016

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Market Potential

India – 2nd largest poultry market in the world� World’s 2nd largest poultry market with an annual growth of more than

14%� Poultry - the most organised sector in animal agriculture -

valued at about INR 350 billion� 3rd largest egg producer after China and USA, producing

around 3.6% of global egg production� Annual growth rate of egg production between 5-8%

� Lowest cost egg producer in the world – an estimated production costof INR 1.1 per egg makes it much lower than all the other majorproducers

60,267 63,024 66,450 69,731 74,752

2009/10 2010/11 2011/12 2012/13 2013/14

Egg production (All India - Million Nos.)

CAGR 5.5%

Egg production:� During 2009/10 and 2013/14 egg production

in India has increased by around 5.5%thereby reaching 74,752 million in the year2013-14.

Egg availability:� During 2009/10 and 2013/14 per capita egg

availability in India has increased by around4.6% thereby reaching 61 eggs in the year2013-14.

51 53 5558

61

2009/10 2010/11 2011/12 2012/13 2013/14

Per Capita Availability of Egg (Number/Annum)

CAGR 4.6%

Source: Basic animal husbandry & fisheries statistics 2015

Note: All statistics mentioned above are as of 2016.

Low cost of egg production, high productivity, rise in egg consumption in the north owing togrowing per capita income of a young and increasingly urban population and emerging exportmarkets are certain key growth drivers of egg production in India.

~ D.S. Rawat, National Secretary General, ASSOCHAM

“”

India is a small player in the global egg powder industry, currently. But Indian egg processors canscale up their operations significantly to catch the market share, since India is the 3rd largest eggproducer in the world.

~ Shree Shivkumar, MD & CEO, SKM Egg Products

“”

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Market Potential

Hong Kong, Saudi Arabia, Kuwait and Russia start importingDue to stricter animal health norms enforced by the countries and due to the outbreak of avianinfluenza in 2012, India was unable to export egg products to a number of countries. However,within last two years lot of economies have opened up poultry imports from India, therebygenerating a huge market potential.

� Hong Kong announced the opening of its market for eggs in December 2015. The Hong Kongmarket for poultry products is worth $2 billion. If Indian exporters capture 10% of this in 2016-17,India’s export of poultry products can triple to US$300 million from $106 million in 2014-15.

� Kuwait allowed import of Indian poultry products, in 2015, with strict conditions for exportersfrom India to follow health procedures laid down by the World Organisation of Animal Health.

� Saudi Arabia, India’s largest destination for poultry products, opened its market in 2014.

� Russia, a huge market for Egg yoke, opened up for imports in 2014.

Egg powder: primarily a foreign exchange earner� Export of poultry products reached US$11.7 crores during 2015-16, a growth of 18% over 2014-

15 (US$10.6 crores). Export of dried egg products reached US$4.8 crores during 2015-16, agrowth of 8.7% over 2014-15 (US$4.7 crores).

� Export of dried egg products constituted over 40% of the export of poultry products.

� Japan is the largest buyer of egg powder followed by Germany and Indonesia.

Parameter 1990 2015Layer birds (crores) 10 24

Layer feed price (INR) 12 22

Egg price (INR) 1.5 2.90

Eggs per hen 260 310

Average layer farm size 20,000 2,00,000

Separate brooding 10% 80%

Feed automation 10% 80%

Small eggs discount Nil Discounted

Eggs cleaning and packing No Important

India – lowest-cost egg producerThe shell eggs are cheapest in India, though the inputs cost is not the lowest. However, due toimproved efficiencies achieved by the farmers by producing more eggs per hen, India ranks one ofthe lowest in terms of price of egg production. Growth of the industry can be appreciated byfollowing figures:

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Growth Drivers

1 Increasing healthconsciousness

Considering the increasing cholesterol related health issues, liquidwhite egg is expected to provide good returns to egg powder unitsin the years to come.

2 R&D to increase shelflife of products Units that succeed in increasing the shelf life of products will be

more competent to penetrate/expand in overseas markets.

3 Dollar and Euroappreciation

Being an Export Oriented Unit, appreciation of Dollar and Euroagainst Indian Rupee is positive for the unit. Strengthening ofDollar would reduce the competitiveness of US manufactures inforeign markets especially in Japan, which is a key importer ofprocessed egg products.

4 Possibility of risingdomestic demand

Currently, there isn’t any major local market for processed egg.Eggs are largely consumed by armed forces and bakery industry,and also distributed as mid-day meal in schools and hospitals.However, with increased availability of egg powder, thehousehold demand is expected to grow.

5 Rising foreigndemand, limitedprocessing units

� In the last two years, many economies have opened up forimport of processed egg products from India – Hong Kong,Saudi Arabia, Kuwait, Russia.

� Currently there are only four-five egg powder processing units inthe country. And most of them are based out of South-India.Hence, there exists a potential to open up new units in otherparts of the country.

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Gujarat - CompetitiveAdvantage

� Uttar Pradesh, Punjab, Tamil Nadu, Sikkim, Gujarat, Chhattisgarh, Maharashtra, AndhraPradesh (including Telangana), Karnataka, Chandigarh, Haryana, Madhya Pradesh, Meghalaya,Dadra & Nagar Haveli and Puducherry have achieved their egg production target during 2013-14.

� Gujarat achieved 105% of its targeted egg production, but owing to the difference in theproduction and consumption, the option of processing is worth exploring.

Gujarat – one of the top five states to over-achieve production targets

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Egg production (% achievement)

Eggs – a key livestock product for Gujarat

Eggs (Million nos.) 2013-14Gujarat(% contribution in India)

1,555(2.1%)

All India 74,752

Eggs form one of the key livestock products for Gujarat’s economy. Gujarat contributes 2.1% to thecountry’s egg production.

Estimates of Yield for the year 2014-15 (Yield/Year – numbers)Improved fowl Desi fowl Improved duck Desi duck

Gujarat 305 132 0 0

All India 276 107 176 111

Gujarat – yield higher than national average� Fowl, which contributes over 97% of India’s egg production, has an average yield of 276 and

107 respectively for improved fowl and desi fowl respectively.� Gujarat’s fowl yield is more than average for both improved and desi fowl.

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1,3271,427 1,456

1,555

2010/11 2011/12 2012/13 2013/14

Egg production (Gujarat – Million Nos.)

CAGR 5.4%

Source: Basic animal husbandry & fisheries statistics 2015

Source: Basic animal husbandry & fisheries statistics 2015

Source: Basic animal husbandry & fisheries statistics 2015

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Gujarat - CompetitiveAdvantage

� Poultry sector needs technical, diploma and certificate holders to work as farm supervisors.� In India, the growth rate of the graduate manpower is not commensurate with growth rates of

either livestock sector or poultry sector.� With a minimum expected growth rate of 10% per annum in the sector, poultry sector alone

needs 1,140 veterinary graduates in 2020.� Gujarat boasts of its premium Agriculture University Banaskantha, which focuses on animal

husbandry through its two colleges (as mentioned below). Apart from these two, Gujarat hasother colleges offering full time and diploma courses in polytechnic and animal husbandry.

� Gujarat – Universities offering animal husbandry courses –reducing the skill gap in the industry4

University CollegeGujarat AgricultureUniversityBanaskantha

College of Veterinary Science & Animal Husbandry, Anand

College of Veterinary Science & Animal Husbandry, Sardar Krushi Nagar

� Availability of poultry feed ingredient5� Feeds account for about 60%-70% of the total cost of producing eggs or meat from poultry.

Maize is an excellent feed ingredient for both egg and meat laying birds and is extensively usedas an energy source. It is high in energy but low in protein. Other energy sources includesorghum and millet.

� Gujarat grows maize, both in Kharif and Rabi season, and hence ensures undisrupted supply ofkey feed ingredient.

� Other advantages6� Well developed transport infrastructure like roads, rail, port and air connectivity with main egg

producing areas in the state offers good opportunities for development of domestic as well asexport market.

� Furthermore, Gujarat is near to Gulf and Far East Asian countries, which have good exportpotential of the product.

� There is a regional and seasonal imbalance of demand and production of eggs. Therefore it isquite logical to process eggs in surplus areas and at the time of glut. Major egg producing areasare near to major consuming centres in South Gujarat and Maharashtra.

Area, Production and Yield of Maize (2013/14)

Area (mn hectares) Production (mn tonnes) Yield (kg/hectare)Gujarat(% contribution in India)

0.46(4.9%)

0.69(2.8%)

1501

All India 9.43 24.35 2583

Source: Agricultural Statistics at a Glance 2014

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Project Information

Suggested plant locationThe preferred location will be Central and South Gujarat as major poultry farming activities areconducted in this area and also consuming industries market is available in these areas. Anand,Bhavnagar, Ahmedabad, Surat and Navsari are the top egg producing districts in Gujarat, which is aprime factor for choosing the project location (closeness of key raw material producers).

Top egg producing districts in Gujarat (2012-13)District(% of Gujarat’s egg produce)

Egg productionMillion nos.

Anand (48) 702.9

Bhavnagar (16) 239.4

Ahmedabad (7) 100.3

Surat (5) 73.4

Navsari (4) 52.2

List of MFP’s in GujaratName Location

Gujarat Agro Mega Food Park Pvt. Ltd Surat

Adani Ports and Special Economic Zone Ltd Kutch

Fanidhar Mega Food Park Ltd. Mehsana

Bhavnagar

Mega Food Park (MFP)Egg producing district

Anand

Ahmedabad

Surat

KutchMehsana

Navsari

All the top egg producing districts of Gujarat lie in close proximity to Surat’s MFP – Gujarat AgroMega Food Park. In addition Gujarat Agro Mega Food Park offers a host of facilities for foodprocessing units. Hence it serves as a suitable location for the proposed unit.

Site image Key highlights of Surat MFP

� Supported and Approved with Central andState Governments

� Strategically located to cater to all key marketsboth domestic and export - 6 Crore LocalPopulation

� Located strategically for sourcing raw material� Availability of Warehouses, Cold stores, Reefer

vans and other transport vehicles� Zone with large manpower supply

Source: Directorate of Animal Husbandry, Gujarat

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Project Information

Plant capacity and costEstimated project cost for manufacturing of egg powder having 240 MT per year plant capacity isINR 1.5 – 1.8 crores.

Note: The egg powder processing units in India are very few, with not all units functioning presently. SKM Eggs is thebiggest player in the industry. (Other players, apart from the ones mentioned above are – Indo-Dutch ProteinsHyderabad, Foods & Inn Mumbai, and A.G. Foods Ludhiana).

Existing players - Project capacity and cost (at the time of set-up)PlayerCapacity

Capacity Location Yearestablished

Cost (INRcrores)

SKM Eggs 18 lakh eggs/ day6,500 tonnes powder/ year

Tamil Nadu 1997 35.5

VenkateshwaraHatcheries

18 lakh egg/ day AndhraPradesh

1995 37.0

Ovobel Foods 2500 tonnes powder/ year Karnataka 1993 17.5

Western Foods 772 tonnes powder/ year Ambala 1992 7.1

There are many benefits of establishing a large scale unit in poultry industry as compared tosetting up a small/medium scale unit:

� Larger units go for bulk purchases, seasonal purchases at harvest and even go for import offeed ingredients. The production costs can be managed.

� Mechanisation in feed production, feeding the birds and egg handling is possible with largerunits.

� Long distance supplies, exports and further processing can be planned with mass production.

� Larger units can adopt better technology like least cost feed formulations and biosecurityprotocols to prevent diseases.

Scale is the key

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Project Information

Gujarat Agro MFP is strategically located at Mangrol, near Surat (Gujarat), providing excellentconnectivity for a global footprint.

The MFP is in close proximity to major railwaystations in Gujarat:� Surat Railway Station – 50 kms� Vadodara Railway Station – 130 kms� Ahmedabad Railway Station – 240 kms� Rajkot Railway Station – 425 kms

Proposed� A multi-modal transportation hub is planned to

be developed at Surat railway station

The MFP has a very good connectivity withother cities in Gujarat and industrial hotspots:� Mumbai – 220 kms - The Mumbai-

Ahmedabad highway (Golden Corridor forindustry) is a key transport corridor

� Ahmedabad – 250 kms via NH48� Surat – 50 kms� Vadodara – 130 kms

Proposed� Vadodara-Mumbai Expressway to be

extended to a 6-lane Ahmedabad – Vadodara– Mumbai expressway

� INR 90,000 crore Mumbai-Surat tunnel road

Distance from major airports in the region -� Ahmedabad airport – 250 kms� Vadodara Airport – 140 kms� Surat Airport – 85 kms� Mumbai Airport – 310 kms

Proposed� A commercial airport at Mundra (Gujarat) by

Adani Ports and Special Economic Zone� A new international airport at Dholera is under

development which is expected to becomeoperational by 2018.

� The MFP is connected to several leading seaports such as Hazira, Nhava Sheva,Kandala, and Mundra sea port.

� Most of the sea ports are within 350 km fromSurat.

Connectivity and Infrastructure

� All plots in Gujarat Agro MFP are equipped with Power, Water, Sewerage and EffluentTreatment Plant (ETP) connections.

� Cold storage (Central and Primary Processing centre) facility for upto 5500 MT capacity isavailable; Warehousing capacity available.

� Solar power generation to take care of common maintenance of MFP.

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Project Information

Raw material requirement

Manpower requirement

Particulars NumberSupervisory staff 4

Production Manager 1

Machine Operators 2

Accountant 1

Workers 22

Skilled labor 6

Semi-skilled labor 4

Unskilled- Skilled labor 10

Salesman 1

Clerk 1

Total 26

An estimated 26 people would be required, including both supervisory staff as well as workers, tomanage the facility. The unit would have to recruit both regular employees as well as contractedlabor.

� The major raw material required is fresh eggs and the daily requirement is ~20,000. Priorconfirmed arrangements for this quantity are necessary.

� The unit can source its egg requirements by entering into long-term contracts with poultries inAnand, Ahmedabad and other egg producing regions. Or, it can also plan for a poultry farm tointernally source part of its daily egg requirement, thereby reducing its dependency.

Machinery suppliers

Belgium

Denmark

Haryana

Agra

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Project Information

Key considerations

Procuring eggs in lakhs per day is not easy to replicate by any new entrantin this field. In order to overcome this challenge, the unit would have toestablish its own farms to source their requirement in part/full. However,despite sourcing its egg requirements from own farms, any adverse changein the price of feed ingredients may affect its raw material cost.

Being a food ingredient, import permission to developed countries is noteasy.

Ensuring the quality of feed and arranging periodic visit of veterinary doctorsto ensure the health of birds is essential. Since the end consumers are largeMNC food companies, stringent quality standards are to be met.

Since the competition is mainly with foreign firms, it can take years toestablish the label of a reliable and quality supplier in overseas markets.

Raw materialprocurement

High qualitystandards

High entrybarrier

Importrestrictions

� CFTRI (Central Food Technological Research Institute), Mysore, can offer the technical know-how. CFTRI has developed over 300 proven technologies and 1000 patents which can transformfood processing industries.

� Additionally, it has established a Technology incubator called "Nutra�Phyto Incubation Centre"for the entrepreneurs to experiment with model industries and take them forward towardssuccessful commercial ventures.

Possible collaboration

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Project Financials

Cost element Qty Cost/ unit 2016 Estimates (INR lakhs)Land and Building 56.0

Land 1,000 250 2.7

Land development - Land area 1,000 500 5.4

Building

Mian production area 500 5,000 27.2

Store-cum-packing room and sales counter 300 5,000 16.3

Contingencies 10% 4.4

Plant and Machinery 81.3

Egg breaker 4 50,000 2.2

Centrifuge 2 3,00,000 6.5

Filter 2 1,00,000 2.2

Storage tank 4 75,000 3.3

Feed pump 2 3,00,000 6.5

Tubular Heater 1 8,00,000 8.7

Balance Tank 4 75,000 3.3

Feed Pump 2 3,50,000 7.6

High pressure pump 2 4,00,000 8.7

High pressure spray drier 1 7,50,000 8.2

Cyclone with exhaust and fan 1 3,50,000 3.8

Packaging unit 1 5,00,000 5.4

Electrification and installation - 4.4

Contingencies 15% 10.6

Miscellaneous Fixed Assets 7.2

Furniture and fixtures 1 1,00,000 1.1

Vehicles - Delivery LCV 2 2,00,000 4.4

Weighing scale 1 25,000 0.3

Others 1 50,000 0.5

Contingencies 15% 0.9

Pre-Operative Expenses 7.5

Establishment 1 2,90,000 3.2

Professional Charges 1 1,00,000 1.1

Security Deposits 1 3,00,000 3.3

Total cost 152.0

� The total cost of the 240 TPA project would be around INR 1.5 – 1.8 crores.

� Plant and machinery constitute the major cost component in setting up the plant, i.e. ~54%,followed by land and building at ~37%.

� In terms of working capital, the major constituent is eggs ~20,000 eggs per day.

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Project Financials

� The project can be a joint venture between the owner company and the state’s agriculturedepartment, i.e. Gujarat Agro Industries Corporation Ltd.

� The company may have to enter into a tie up with a foreign collaborator for technology/ forsourcing plant and machinery. Technology tie up can also be made with CFTRI (Central FoodTechnological Research Institute), Mysore, as mentioned previously.

Implementation model

Existing players – Implementation modelSKM Eggs � Joint venture between SKM Animal Feeds and Foods (India) and

Tamil Nadu Industrial Development Corporation� Technological assistance for the unit from Belovo Engineering SC,

Belgium

Balaji – VenkateshwaraHatcheries

� Ovotec International of Belgium holds 6.92% of the equity in thecompany

� Technological assistance for the unit from Food EngineeringServices, US

Ovobel Foods � Food Processing Ministry to hold a 5% stake in the company'sequity

� Technical and financial tie up with Ovobel SA of Belgium

Western Foods � Financial collaboration with Haryana Agro Industries CorporationLimited (HAIC) and Haryana State Industrial DevelopmentCorporation Limited (HSIDC)

� Foreign Collaboration Agreement with Sanovo Engineering,Denmark for technical know-how for the project

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Approvals & Incentives

� The proposed unit will have to register itself with Secretariat of Industrial Approvals (SIA), Ministryof Industries and Government of India, by filing Industrial Entrepreneur’s Memorandum (IEM), if ithas plant and machinery investment of more than INR 10 million.

� The unit will require registration of its products with Foods and Drugs Administration (FDA) inexporting countries, apart from registration with Indian and state food administrations. The mostcritical aspect of this product will be its shelf life for export consumers and hence there will beneed for meeting FDA regulations in consuming countries and Codex standards followed bythem.

� The unit will register itself with Ministry of Food Processing Industries (MoFPI) for availingsubsidy benefits. The unit will also register itself with RBI, DGFT and with APEDA as registeredmanufacturer exporter to avail export incentives.

� India imposes no restrictions for poultry and egg exports, which include egg powder, table eggs,specific pathogen-free (SPF) eggs, and frozen chicken meat to regional markets such as Asia,Africa, and the Middle East.

Approvals

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Approvals / Incentives

Incentives by Government of GujaratGujarat government announced its Agri Business Policy – 2016 with emphasis on promotingfood processing industry by developing the entire value chain of exporting locally grown farmproduces.� Capital investment subsidy at 25% of eligible project cost subject to maximum INR50 million for

cold chain, food irradiation processing plants and packaging houses� Back ended interest subsidy at 7.5% on term loan with maximum amount of INR40 million for a

period of 5 years for setting up infrastructure project in Agro & Food Processing sector(including packaging houses)

Major components covered in comprehensive Agro Business Policy 2016 - 2021

� Capital Subsidy on investment to agro and food processing industries

� Assistance of Back Ended Interest Subsidy on the Term Loan

� Freight Subsidy will be available to Micro, Small and Medium Enterprises (MSME)

� Assistance in Sample Testing

� Assistance for ‘Quality Certification Mark’

� Financial Assistance for Skill Enhancement

� Reimbursement of VAT and Sales Tax

� Encouragement in Electricity Rate and Duty

� Refund on Registration Fee and Stamp Duty

� Assistance for Research and Development

� Assistance for Patent Registration

Note: Please refer Gujarat Agro Industries Corporation website for comprehensive Agro-Business policy (2016-21).

Incentives and financial assistance to units in Gujarat AgroInfrastructure Mega Food Park� MoFPI-approved project - Hence easier release of subsidy funds of MoFPI Schemes to Food

Processing Units.� Zero stamp duty on land lease (Exclusively to Gujarat Agro Infrastructure Mega Food Park)� Term loan at concessional rate of interest from NABARD under food processing fund exclusively

available to units in food parks� Lower import duty on imported machinery� Exemption from income tax for 5 years from commissioning date� Benefit under Government of Gujarat's “Scheme of assistance to manufacturing sector"� Short start-up time – ready availability of non-agriculture converted plots and sheds

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Approvals & Incentives

Some of the major initiatives taken by the Government of India (GoI) to improve the foodprocessing sector in India are as follows:� Union Budget 2016-17 has proposed 100% FDI through FIPB (Foreign Investment

Promotion Board) route in marketing of food products produced and manufactured in India.� The Food Safety and Standards Authority of India (FSSAI) has issued new rules for

importing products, to address concerns over the entry of sub-standard items and simplifythe process by setting shelf-life norms and relaxing labelling guidelines.

� The Ministry of Food Processing Industries announced a scheme for Human ResourceDevelopment (HRD) in the food processing sector. The HRD scheme is being implementedthrough State Governments under the National Mission on Food Processing. The schemehas the following four components:

� Creation of infrastructure facilities for degree/diploma courses in food processingsector

� Entrepreneurship Development Programme (EDP)� Food Processing Training Centres (FPTC)� Training at recognised institutions at State/National level

� NABARD Loan for Food Processing Industry: In the 2015 Budget, the Finance Minister hadannounced the setting up of an INR2000 crore fund in NABARD for providing loans toentrepreneurs setting up food processing businesses in designated food parks.

� Ministry of Food Processing Industries has launched “Mega Food Park Scheme” to boostthe Indian food processing sector and facilitate creation of modern infrastructure for foodprocessing such as processing center-cum-cold chain in identified clusters, processing ofintermediate products, centralized infrastructure to take care of processing activities. Goingforward, investments, including FDI, would rise with strengthening demand and supplyfundamentals in India.

Incentives by Government of India

Food processing sector in India has received ~US$6.70 billion worth of Foreign Direct Investment(FDI) during the period April 2000-December 2015. The Confederation of Indian Industry (CII)

estimates that the food processing sectors have the potential to attract as much as US$33 billionof investments over the next 10 years and also generate employment of nine million person-days.

Gujarat Agro Industries Corporation LimitedGujarat State Civil Supplies Corporation Ltd Building2nd Floor , "B” Wing , Sector 10A,Gandhinagar – 382010, Gujarat, IndiaPhone / Fax : 079-23240208Email: [email protected]://gaic.gujarat.gov.in/

This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Agriculture and Co-operation Departmentwww.agri.gujarat.gov.in/index.htm

Gujarat Industrial Development Corporationwww.gidc.gov.in/

www.ic.gujarat.gov.inIndustries Commissionerate

APEDA – Agricultural & Processed Food Products Export Development Authority

http://apeda.gov.in/apedawebsite/

Food Safety and Standards Authority of Indiahttp://www.fssai.gov.in/

National Egg Coordination Committeehttp://www.e2necc.com/

Ministry of Food Processing Industries

http://www.mofpi.nic.in/