source: livemint.com

Business opportunity: Waste Management

Indian cities are crumbling under waste, India generates almost 130 million tonnes of waste per day of which only 12 % is being processed and treated[1].

Hence, lies the opportunity for entrants in waste management services, where the service provider can tie up with the waste generators to manage their waste by treating/processing it on site. This opportunity exists in number of sectors including food waste, poultry waste, agri waste, and dairy farm waste. This blog focuses on managing food waste.

What is the opportunity? 

The business opportunity is to offer waste management services to the large food waste generators, such as hotels, big institutions with canteen facility, hospitals, and engineering colleges by setting up a biogas plant in their premises. The kitchen waste can be converted to either biogas or electricity, which can be consumed by the user.

This service would also be useful to large apartment complexes (with 1000 flats or more) and schools that offer meal to their students.

As can be seen below, biogas plant is an attractive investment for its buyer, he can recover his investment in four years.
Further, the use is entitled to a subsidy[2] of Rs. 40,000 per KWH of power generated or 40% of the project cost. After accounting for subsidy, the payback period would only be three years.

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How does one start biogas plant manufacturing unit

In order to offer Biogas plant fabrication service, one needs to have detailed understanding of the processes involved in manufacturing, selling, installing and operating of the Bio-gas plant. There are Biogas Development & Training Centres set up by respective state governments, which impart training in operations of biogas plant.

Typically, most of the companies who are in the business have at least one member who is a micro-biologist/ bio-technologist with a bachelor’s or master’s degree.

The capital requirements are not large, as it is a skill intensive business. One does not need to set up a manufacturing unit, the plant is typically fabricated at the client site and client pays up to 50 per cent of the price in advance.  The cost of fabrication of a (up to 2 tonne per day) plant usually is less than15 lakhs. Assuming that one starts with one order, the capital required for setting up this business would be within 20 lakhs.

Challenges

  • Waste management is a new concept in India, and people are not used to paying to manage their waste. It can take several meetings/follow ups to convince a customer about utility of investing in waste management. However this issue will be eased with stricter environment laws going forward.

 

  • The waste for the plant needs to be homogeneous, requiring the waste to be segregated into organic and inorganic waste at source. The segregation of waste can be challenging for a housing apartment complex, where residents are not used to segregating their waste.

 

  • The biogas produced in the plant has to be used the very same day as transporting and bottling it is not viable. Hence, biogas as a cooking option is feasible only for institutions that have one large kitchen (hotel/ hospitals) and not apartment complexes.

 

 How can we help?

FineTrain enables entrepreneurs to assess and understand new business opportunities. Our services include market research, business feasibility studies and business diagnostics – we can help you in understand the market, competitive landscape, subsidies and government schemes available for waste management opportunities. We also offer support in executing your ideas by connecting you with sector experts and professionals.

 

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

Visit us- www.finetrain.com

[1] Source: Status report (2001-13)Pollution control board.

[2] The subsidy is available only for plants which convert the gas into electricity and the calculation is based on the KWH of the electricity generated. The subsidy is calculated as Rs 40,000 / KWH (kilo watt hour) or the 40% of the total cost of plant construction whichever is less.

[3]Picture Source: Livemint.com

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Business Opportunity in Andhra Pradesh: Aquaculture and allied industries

Aquaculture:

Aquaculture refers to commercial farming of seafood such as fish, prawns and crabs. The produce is either sold fresh or in processed form in domestic and export market.  Aqua animals found in India can be divided into two categories: marine animals such as shrimps and crabs and inland fresh water fish including Rohu, Catla, Mrigala, Grass Carp.

The current Indian market[1] for sea food is estimated to be 10.07 million tonnes, valued at over INR 1 lakh crore, growing at a compounded annual growth rate (CAGR) of 5% in volume. The processed fish segment (although only 12% of the total market now) is growing at a CAGR of 10% in terms of volume and over 25% in terms of value.

The growth of the aqua industry has spurred the growth of a large number of supporting industries such as manufacturing fish feed and equipment/products for catching and processing fish.

Why Andhra Pradesh?

Andhra Pradesh is the largest producer and exporter of seafood (see Table 1) in the country.  Aquaculture is an attractive opportunity in coastal regions of Andhra Pradesh such as Srikakulam, Vizianagaram,Visakhapatnam, Krishna, Guntur, Prakasam, Nellore and East and West Godavari.

Table 1: Major fish producing states in India (2014-2015) 

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Source: National Fisheries Development Board

What are the Opportunities offered by allied industries?

These include opportunities related to manufacturing products and equipment used in farming and processing of sea animals.

 

Table 2: Aqua culture and allied industries

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What is the Government support available to this industry?

There are a number of incentives available to entrepreneurs in this sector, including schemes from National Fisheries Development Board (NFDB), Department of Fisheries (Andhra Pradesh) and Department of industries (Andhra Pradesh). These are of two forms:

  1. Farmers are given subsidy to purchase equipment such as Aerators that mechanize the farming
  2. Entrepreneurs are offered incentives to set up manufacturing facilities/processing facilities. For example, as part of Fisheries Policy of Andhra Pradesh, entrepreneurs are offered interest subvention/subsidy of 6% on the loan taken for setting up the unit for ice processing plants and feed manufacturing units.

For more information on these subsidy schemes, please click this links:

http://www.ap.gov.in/wp-content/uploads/2015/12/31102015AHF_MS30.pdf

http://nfdb.gov.in/pdf/GL.pdf

How can we help?

FineTrain enables entrepreneurs to assess and understand new business opportunities. Our services include market research, business feasibility studies and business diagnostics – we can help you in understanding the feasibility and viability of aquaculture and related opportunities and suitable government schemes. We also offer support in executing your ideas by connecting you with sector experts and professionals.

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

Visit us- www.finetrain.com

[1]  Market size has been estimated  by assuming production at 10.9 million tonnes  (as per data from National Fisheries Development Board)  and a price of 100 INR per kg

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Business Opportunity: Function Hall

Function or Banquet halls provide space and other services such as decorations, food and drink for a party, ceremony, get-together, corporate retreat etc. Function halls typically provide only the space, furniture and cooking facilities. Guests hire the cook separately to make arrangements for food. Banquet halls typically are owned and managed by restaurants, hotels, and they have in-house catering facilities and staff.

What drives the demand for these facilities?
Demand is influenced by the type of event/occasion to be celebrated. Typically, these facilities are availed predominantly by people for celebrating marriages that are typically 2-3 day affairs. However, over the past decade, demand for short duration events such as get-togethers, birthday parties, corporate meetings and sports events has increased as well, owing to greater disposable income and the large demographic dividend. Our primary and secondary research indicates that demand drivers are changing as follows:

1. Demand for these facilities is on the upswing: Increasingly these facilities are being availed by customers of smaller and shorter duration events such as birthday parties, anniversaries, family/class reunions and get-togethers. Corporates/government agencies and educational institutions have also started availing these facilities for organizing events such as office retreats, outbound/annual events, award ceremonies, small conferences/workshops/seminars. Of late, demand for facilities where soccer, badminton and soft sports can be played is also increasing.

2. Distance to the facility is not a big differentiator: Customers are willing to travel some distance if the quality of the facilities are perceived to be good. In fact, people increasingly want a hall away from the hustle and bustle of the city, especially for corporate events, get-together and sports events.

3. Price is not a overriding factor in selection: Customers are willing to pay more for better amenities, including more amenities for children, comfortable interiors etc.

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Opportunities for new entrants:
Overall, customers are looking for a venue which could be a one-stop destination for different events. As such, key things to be kept in mind by new entrants for differentiating themselves are:

Incorporating innovative features: Customers are looking for such as theme based architecture, special play area of children, comfortable interiors, music systems and license to play music, in house photography, projectors and screens to display pictures. In addition, customers are also interested in venues that can incorporate soft sports such as badminton, soccer, tennis etc as well.

Focusing on quality of service: Customers want hassle free, one stop services. Venue providers could differentiate themselves by offering services such as pick up/drop facility from nearest station/airport and props for photography/selfie sticks.

Food remains the most important aspect: This is true of any event and understanding preferences and allowing customers to tinker with the menu would go a long way in ensuring loyalty.

Enhanced marketing: Currently, most of these facilities gain customers largely through referrals and paid listing in local directories. Building digital presence, allowing a virtual tours of the facility, posting availability for the next few months, online bookings either directly or through portals that facilitate bookings, and perhaps offering reward points for customer referrals can also enhance bookings.

How we can help?

FineTrain enables entrepreneurs to assess and understand new business opportunities. Our services include market research, and business feasibility studies. We also offer support in implementing your idea by connecting you with professionals who offer project execution support. We can help you assess feasibility of setting up a new event facility in your city, understand customer preferences, analyze the capital requirements, profitability and time to breakeven.

Reach us at:
admin@finetrain.com,
bchhatre@finetrain.com

800 888 4932