Transcript Madhya Pradesh: Means Business Forest, Environment & Herbal 1

Madhya Pradesh: Means Business
Forest, Environment & Herbal
1
Overview
Overview
Madhya Pradesh (MP) – State that means business
 MP is the second largest State in the Country stretching over 308,000 sq kms.
 The State is blessed with large mineral resources of coal, diamond, limestone, methane etc.
 MP is among the top 4 states of the Country for industrial investments.
Economic Snapshot
Advantage MP
Madhya Pradesh is emerging as a key growth center for the Country
 Gross state domestic product (GSDP)
USD 23,983.63 Mn**
 Average growth rate
5.5% per annum
 Investor friendly Government policies
 Manufacturing sector
USD 8.5 bn**
(Registered & Unregistered)
 Total electricity generation capacity
6,449.25 MW*
 India’s first greenfield SEZ
Indore SEZ
 Industrial Centers
8
Electricity generation capacity at present is 6,449.25 MW and estimated to rise to a surplus in 2008-09
 MP is rich in low grade coal suitable for power generation.
 Potential of hydro-energy generation.
 Installed power capacity (MP’s share)
 Hydel Power Generation: 852.7 MW*
 Thermal Power Generation: 2,147.5 MW*
2
*Ministry of Power (powermin.nic.in)
USD 369**
Madhya Pradesh has one of the upcoming industrial base in India
 The State is centrally located
Power
 Per capita GSDP
**Source: Indiastat.com (as on 23 Feb 2006)
Enabling Infrastructure
MP IS CENTRALLY LOCATED AND WELL
CONNECTED WITH ALL MAJOR CITIES IN INDIA
RAILWAY NETWORK
• 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.
• 25 airstrips.**
• Convenient air links from key Indian
cities like Delhi & Mumbai to Bhopal,
Jabalpur,
Gwalior,
Indore
and
Khajuraho.
AIRPORTS
GWALIOR
KHAJURAHO
INDORE
• 5 operational airports.
• Indore airport has the capability of
BHOPAL
handling international cargo.
JABALPUR
• An international airport proposed in
Bhopal.
• The total length of roads spanning MP is
ROAD NETWORK
67,600 kms.**
• National highways of 5,200 kms run
through the State.*
• 18 National highways including trunk
routes of Delhi-Mumbai, Delhi-Chennai,
Delhi-Bangalore, Delhi- Hyderabad.
• The total length of State highways in the
State is 9,885 kms.**
• Convenient linkages to western ports i.e.
Kandla Port, Jawahar Nehru Port Trust.
3
*Source: Department of Road Transport & Shipping (morth.nic.in)
**Source: www.destinationmadhyapradesh.com
Madhya Pradesh: A Preferred Investment Destination
31% of the State under forest
cover with a largely unexploited
species
of
rare,
valuable
medicinal- herbal plants
Over 2,000 kms of roads
being
developed
with
Private Partnership (BOT)
India’s
1st
operational
Greenfield SEZ at Indore
Third largest producer
cement in India*
Over 100 agricultural farms with
an area of over 20,000 acres is
available on lease to investor
Favourable
climatic
conditions for cotton
and over 40,000 powerlooms are driving the
textile industry
4
*Source: www.mpsidc.org & Brochure: MP Means Business
of
Various blocks available
for power, cement, iron
and steel units
Largest producer of pulses
and oilseeds in the Country
(~75%
of
soyabean
production)
Availability of coal and natural gas
(G.A.I.L pipeline) along with support
from Government to make investment
in Thermal Power Plants lucrative
Offers diverse tourists destinations
catering to various segments of
tourism such as religious (Bhojpur),
eco/ adventure (Panchmari), heritage
(Sanchi, Khajuraho) tourism etc.
Over
18,000
technical
graduates
and
230,000
graduates add to workforce
each year
Over 144 BCM of coal bed
methane reserves available
12 blocks with reserves
totalling 2,585 million tons
of coal has been identified
MP: The Right Place with the Right Environment
Savings in Office Space Rates
Fastest mover* in overall
performance among the
big States in the Country.
DESTINATION MADHYA PRADESH
(A comparison of rates in Central Business Districts)
Mum bai
150
Ahem adabad
Delhi
100
50
Bhopal
Bangalore
0
Fastest mover in agriculture
Indore
Delhi
(740 Kms)
(MPV - 789.5)
Fastest mover in
infrastructure development.
Ranks 2nd in terms of
governance.
Hyderabad
Bangalore
(1400 Kms)
(MPV - 254.52)
Savings in Land Cost
Kolkata
(1350 Kms)
(MPV - 613.19)
Mumbai
(780 Kms)
(MPV - 1000)
Ranks 3rd in terms of law &
order
Pune
Bhopal and Indore have substantial cost
advantages, even when compared to other Tier
III and IV cities.
Ahmedabad
(570 Kms)
(MPV - 220.63)
Pune
(800 Kms)
(MPV - 206.51)
Chennai
Vishakapatnam
100%
80%
Hyderabad
(840 Kms)
(MPV - 257.9)
Chennai
(1430 Kms)
(MPV - 362.84)
Key Markets
Indore
60%
20%
MPV – Market
Potential Value
0%
Jaipur
Greater Noida
Chandigarh
MP is centrally located. The State is at an easy distance from
all the key consumer markets in the Country.
5
**Source: India Today (September ‘06 Issue)
Chennai
40%
(Distance From
Bhopal)
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
(Estimated Values for Multiproduct SEZs)
Source: (Reference: RK Swamy)
- Distances rounded off
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.
Industrial Policy: Catalyst for the Investments
The 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.
• Special package for Mega Projects on project basis by apex level
investment promotion empowered committee headed by the Chief
Minister.
The main thrust of this policy is:
• Industrial investment promotion assistance – 50% to 75% of commercial
tax for 3-10 years
• Establishment of a Madhya Pradesh Trade
Facilitation Corporation which would take
and Investment
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.
SPECIAL INCENTIVES
• Concessional registration charges and stamp duty exemption for
Term Loans.
• Interest subsidy on term loan for 5 – years @ 3% to 5%.
• For thrust sector industries, 25% capital subsidy would be provided
limiting up to a maximum of USD 56,000
• Land on 75% concessive rate for Mega Projects limited to USD 4.4
million.
• 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 private
sector industrial parks
• Partial reimbursement for Project report, ISO Certification, Patent and
Technology Purchase cost
CLUSTER APPROACH
• Indore – Pharmaceutical, Textile,
Processing, IT, Auto Components
Food
• 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
6
SPECIALIZED INFRASTRUCTURE
• Attractive incentive schemes.
Crystal 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
Doing Business Made Easy Through MPAKVN
In a bid to build a competitive environment; industries and their ancillaries would be promoted in clusters based on the availability of raw materials,
skilled labour and market potential. Under this Industrial Policy through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs)
scheme, the State Government, has identified industrial clusters. Many of the industrial giants have their establishments in these areas, however 44% of
Area Developed: 790 Hectares
Area Developed: 273 Hectares
Allotted: 618 Hectares
Allotted: 800 Hectares
Allotted: 125 Hectares
Allotted: 115 Hectares
Units established: 286
Major Groups:HEG, Crompton
Greaves, P&G, Godrej, Lupin, IFB,
Oswal, Nahar
Special Infrastructure: ICD, Food
Park
Units established: 326
Major Groups: JK, Surya Roshini,
Godrej, Grasim, Cadbury, Hotline,
Crompton Greaves
Special Infrastructure: ICD, Food
Park
Units established: 52
Major Groups: Raymond, Hindustan
Petroleum, PBM, Ayur
REWA AKVN
Area Developed: 2,262 Hectares
JABALPUR AKVN
Area Developed: 1,330 Hectares
GWALIOR AKVN
BHOPAL AKVN
developed area is still untapped and open for investment.
Units established: 121
Major Groups: Birla, Jaypee
Special Infrastructure: Integrated
Special Infrastructure: Stone Park,
infrastructure development centres
Food Park
(IIDC)
Area Developed: 2,492 Hectares
Malanpur, Malanpur
Phase II, Banmore,
Chainpura,
Siddhgawan,
Pratappura
INDORE AKVN
Allotted: 1431 Hectares
Units established: 575
Rewa, Waidhan
Major Groups: Tata, Ranbaxy, Eicher,
Total developed
area
7,147
Hectares
Total allotted area
3,089
Hectares
Total units
established
1,360
Growth centres
19
Bridgestone, Hindustan Motors, Kinetic,
Mandideep,
Pillukhedi,
Mandideep Phase II
SRF, S Kumars, Gajra, Nicholas Piramal,
Indorama, IPCA, Bhilwara
Special Infrastructure: SEZ, Crystal IT
Park, Food Park, Apparel Park
Pithampur, Kheda,
Dewas, Maksi,
Megh Nagar
Borgaon, Maneri,
Purena
7
Source: MPSIDC
Sector Profile
Forest, Environment & Herbal
Sector Profile : Forests, Environment & Herbal
MP: Forest Capital of India
MP : Forest Snapshot
Herbal Market Scenario
MP : Herbal Potential
Concessions and Facilities for Herbal Industry
Investment Destination - Opportunities in Herbal
Investment Destination - Opportunities in Forest & Environment
MP: An Investment Destination
Way Forward
9
MP: Forest Capital of India
Forest Map of MP
 Madhya Pradesh has a forest area of 94689.38 sq. km which
constitutes nearly 31% area of the state. With a share of nearly 13% of
the total forest area of the country, MP has the largest forest covered
area among all the States in India.
 The state has a diverse range of forest. The four key types are Tropical
Moist, Tropical Dry, Tropical Thorn, Subtropical broadleaved Hill forest.
 There are three key forest formations, namely Teak Forest, Sal Forest
and Miscellaneous Forests. Further, Bamboo bearing areas are widely
distributed in the State.
 Forest based industries are key contributor to the State’s economy and
Classification of MP land Mass
provide employment to a large part of the population.
MP
Reserved 65.36%
 In 2004-05 forests and logging contribute 2.1% to the State GDP.
 The total growing stock (volume of timber / wood) in MP is 50 mn cu. m
valued worth USD 55.5 bn.
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.
10
Non
Forest
MP
9.38%
India
90.62%
69%
Forest
31%
Protected 32.84%
Unclassified 1.7%
MP: Forests Snapshot
Production of Timber, Fuel wood and Bamboo
• MP’s 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.
Timber
Fuel wood
Bamboo
5
4.5
4
• MP is the largest producer of Tendu leaves in the country which is
standard bags*.
Lakh Cu M
annual production of Tendu Leaves in the state is around 2.5 mn
2
3.5
3
1.5
2.5
2
Lakh nt
the key raw material used for the production of “Biddi”. The average
2.5
1
1.5
1
0.5
0.5
• MP accounts for nearly 25% of all the Tendu Leaves produced in India
0
0
2001-02
2002-03
2003-04
2004-05
Key Forest Products
Woody Products
Nationalised Minor Forest Products
Non-Nationalised Minor Forest Products
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, (more than 155)
Revenue From Sale of Forest Products
125
122
US$ Mn
120
Key Tree Species
Teak ( Tectona grandis)
Salai (Boswellia serrata)
Sal (Shorea robusta)
Saja (Terminalia)
Bija (Pterocaropus marsupium)
Haldu (Adina cordifolia)
Khair (Acacia catechu)
Lendia (Lagerstroemia parviflora)
Tinsa (Ougeinia Ogeinensis)
*One standard bag of Tendu Leaves in Madhya Pradesh means 1000 bundles of 50 leaves each.
11
2005-2006 (till
5/06)
115
113
109
110
107
105
100
95
2002-03
2003-04
2004-05
2005-06
Herbal Market Scenario
 As per the estimates of the WHO, nearly 80% of the world’s population depends on herbal
Global Demand of Medicinal Plant
medicine for their primary health care requirements.
USD 5 Tn
 Global trade in medicinal plants is over USD 60bn in 2004 with an annual growth rate of
15%.

India is rapidly emerging as a key player for supplying medicinal plants to the world.
USD 60 bn
 Estimated total value of products from Ayurvedic production in India is nearly USD 1 bn.
 Exports of Ayurvedic medicines have reached a value of USD 100 million a year. Of the
total exports, about 60% is crude herbs, 30% finished product shipped abroad for direct
2004
sales to consumers, and the remaining 10% is partially prepared products to be finished in
2050
Source: WHO Estimates
the foreign countries.
Break up of Ayurvedic Export Market
 The Ayurvedic industry in India is dominated by around 30 companies. Key suppliers like
Dabur, Baidyanath, and Zandu, together contribute about 85% of India's domestic
market.
Charak
Pharmaceuticals,
Vicco
Laboratories,
Emami
Group,
Aimil
Crude herbs
60%
Finished
Products
30%
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
Partially
Prepared
10%
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.
12
With demand of herbal products
increasing
globally,
the
market
presents
substantial
business
opportunities for herbal companies in
India.
MP: Herbal Potential
 With 11 Agro-climatic zones out of the total 16 in the country, MP is well
Estimated Production Potential of key Medicinal Plants
suited for cultivation of a large number of Medicinal and Aromatic plants
(MAPs).
isabgol
Bel
 The production of MAP’s in the State in 2004-05 was 20,000 tonnes
and is estimated to rise to 40,000 tonnes by the year 2009.
Isabgol
500
Ashwaganda
500
200
200
Aloe Vera
 MP’s share in the national production of MAPs was 6.25% in 2004-05
Kalmegh
200
Chandrashur
and is expected to rise to 8.63% till 2009.
100
100
Essential Oils
 30% of the demand of Indian herbal industry is met by the herbal
Keokand
100
50
Shatawar
collections centers of Madhya Pradesh.
Giloy
 MP is the natural habitat for over 50% of the herbs used in the
Nagarmotha
pharmaceutical industry and is the key source of raw material to various
Sarpagandha
50
50
Gudmar
50
50
Bach
herbal processing units across the country. The Government is keen to
0
200
400
develop MP as the key processing center for herbal products.
1000
1200
Tonnes
1400
1600
1800
40000
8.63%
35000
8.00%
5.76%
30000
6.25%
MT
6.00%
800
45000
10.00%
7.00%
600
5.00%
4.00%
25000
20000
15000
3.00%
10000
2.00%
5000
1.00%
0
0.00%
1999-2000
13
2004-2005
2008-2009
2000
Increasing Annual Production of MAPs in MP
MP’s Rising Share in National Production of MAPs
9.00%
2000
1000
1000
Safed Musli
1999-2000
2004-2005
2008-2009
Concessions and Facilities for Herbal Industry
To facilitate the development of herbal industry, the Government of MP
extends various concessions and facilities to industries.
Capital Investment Subsidy
Category of district
 The key concessions offers are capital investment subsidy, interest
subsidy, concessional land rates, industrial investment promotion
assistance and entry tax exemption etc.
% of subsidy on fixed
Investment
Upper limit of subsidy
(USD)
Backward A
15%
11,000
Backward B
15%
22,000
 Exemption from electricity duty for 5 years
Backward C
15%
33,000
 Exemption from stamp duty/registration charges
Special capital subsidy at 25%. To a maximum of USD 0.02-0.05 as per
category, if the investment is more than USD 0.11mn
 New industries are exempted from paying entry tax for five years from
the date of first purchase of raw material
Interest Subsidy
 Partial reimbursement of expenditure incurred on quality certifications,
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 unit
in 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.
The Government is keen to harness the natural riches of MP and is
vigorously promoting the development of herbal industry in the State.
14
Category of district
Duration
(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
10
Investment Destination- Opportunities in Herbal
• MP is the key supplier of raw material to the herbal industry across the
Special incentive Package for Herbal Industry
country. While MP has several success stories in the cultivation and
collection steps of the value chain; substantial opportunities now exist
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
 Reimbursement of 50% of the total fees incurred on hiring
technical consultancy for getting GMP certification. With an upper
limit of USD 22,000 per project.
 For participation 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
package for the herbal industry.
herbal products will be reimbursed up to a maximum of USD 1100
Viable Herbal Processing Industrial
Opportunities in MP
Key Drivers for Herbal
Industry
Aloe Vera gel extraction and spray dried
powder manufacturing units
Herbal extraction units
Abundant availability of raw
herbs
Abundant cultivable land
available
Fractional Distillation units for essential oil
production and refining
Ayurvedic drug formulation units
and air fare to a maximum of USD 1100.
 All concessions and facilities that are available to industrial units in
the 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.
Mass scale cultivation of large
number of species already
initiated
Food and vegetable colours and dyes
Production of concrete and absolute from
flowers
of
Land available for industrial
operations at economic rates
Primary processing centers for raw herbs
years and also for entering into agreement with financial institutions
Isabgol dehusking units
for getting financial assistance.
Single window clearance
system for drug license
Lack of competition in herbal
processing
Herbal cosmetics production units
Perfume production units
Expeller units for producing Bio-diesel and
Neem oil
15
 Stamp duty waiver for Herbal and Ayurvedic industries in case
change
in
name,
collaboration,
inclusion
of
partners,
reorganizations and for amendment in the lease deed for the next 3
 Small scale pharmaceutical industries will be given priority under
store purchase rules
 Fast track clearances for setting up pharmaceutical and herbal
industries.
Investment Destination- Opportunities in Forests & Environment
 Being the largest producer of Tendu leaves; MP is strategically the most
Madhya Pradesh is Strategically
Placed for Forest Based Products
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 of Biddi and related products.
 The forests in the State are a key source of high quality timber yielding
variety of Teak and Sal which forms the backbone of the furniture industry.
Delhi
(740 Kms)
Companies can set up the furniture units in the State and leverage
Jaipur
(580 Kms)
following key location advantages:
–
1) Proximity to raw material
–
2) Proximity to target markets
–
3) Proximity of ports for exporting products
Ahmedabad
(570 Kms)
natural parks and 25 sanctuaries, which present an immense potential for
Mumbai, JNPT
(780 Kms)
Hyderabad
(840 Kms)
Bangalore
(1400 Kms)
Kolkata, Haldia
(1350 Kms)
Bhubaneshwar
(1200 Kms)
Pune
(800 Kms)
 Significant opportunities exists for the development of handicraft industry
private participation are immense as there is a high demand for handicrafts
Patna
(910 Kms)
Nagpur
(350 Kms)
tourism and hospitality industry to flourish.
specially for the production of Bamboo based goods. Opportunities for
Kanpur
(600 Kms)
Kandla
(933)
 Given its vast forests landscape and scenic vistas, eco-tourism and
adventure tourism opportunities are abound in MP. The State has nine
Lucknow
(680 Kms)
Chennai
(1430 Kms)
Vishakapatnam
(1310)
Key Markets
(Distance From Bhopal)
Key Ports
products in the foreign countries as well as in the domestic market. Further,
(Distance From Bhopal)
companies can leverage the availability of local inexpensive labour with
Sanctuaries
high skill sets in production of various forests goods.
The forests resources of MP provides immense business opportunities for forests based product manufacturing.
16
Investment Destination- Opportunities in Forests & Environment
 Environment protection and conservation is one of the key concerns of the
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.
Tobacco Industry
Key Investment Opportunities
State Government. All the envisaged development plans in the state would
Timber Production
Paper Pulp
Eco-Tourism
Furniture Industry
Handicrafts
Bamboo products
Bio-diesel
Solid Waste Management
Recycled Goods Industry
 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.
17
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.
Way Forward
 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.
Contract
Farming
Setting Big
Processing Units
Collaborative
Manufacturing
Government 3-tier Strategy
for Development of Medical &
Aromatic Plants Industry
MP provides ample opportunities across the
value chain of Herbal Industry
18
Success Story : Vindhya Herbal
In collaboration with the international FMCG major Hindustan Lever Ltd , 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.
Key Products Promoted under Vindhya Herbal Brand
 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.
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/ shampoo
Way Forward
Vijay Herbals &
Essential Oils
companies in the forest & forest based products segment.
Kasturi Herbal
Farm
 By investing in the MP an investor can join the club of
companies such as Dabur, HLL, Baidyanath, Lupin, ITC
etc. This truly reflects upon the bio-diversity of the state and
Join The Club
 MP has been successful in attracting several large
Sanwaria Herbal
Farm
Devika Herbal
Omni
Pharmaceuticals
Gewit Herbal EH
the investor confidence.
 There are over 32 contract farming companies operating in
the state and this figure has been rising substantially in the
recent past.
 The increased production of certain products is the
indicator of increased activity in the state. For instance, the
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.
Opportunity
Key Locations
Lac
Processing
Seoni
Annupur
Honey
Processing
Sheopur
Kalan
Wild MAPS
Jabalpur
Katni
Herbal
production of lac has increased from 3,000 quintals in 2003
Forest & Environment
Key
Investment
Opportunities
MP is the land of opportunities for Forest & Forest Based Products
19
Opportunity
Key Locations
Teak & Sal
(Furniture
factory)
Chattarpur
Bamboo
Balaghat
Jetropa Bio-diesel
Plantations
Connecting Further
Forest Department MP
Madhya Pradesh Minor Forest Produce Co-operative
Federation
20
http://www.forest.mp.gov.in
www.mfpfederation.com
Center for Entrepreneurship Development
www.cedmapindia.com
Government of Madhya Pradesh
http://www.mpgovt.nic.in