PET

Business opportunity: PET recycling

Ever thought about what happens to the cold drink/juice/mineral water bottle after we have discarded it. About 70 per cent of PET bottles are recycled and reused in textile and packaging industry.

India is one of the largest recyclers of PET in the world, next only to China. The industry is growing at a rate of more than 25 per cent per annum. India consumes around 800,000 tonnes of PET resins annually, around 70 per cent of which is collected and recycled. PET recycling business has a turnover of Rs 3,500 crore[1].

PET recycling business is concentrated in Maharashtra and Gujarat, textile and packaging hubs of the country. There are not many PET recycling units in Andhra Pradesh and Telangana. Given that both Telangana and Andhra Pradesh are bountiful in cotton and have identified textile as a focus sector, PET recycling can be an attractive opportunity.

PET Recycling Process

PET bottles are collected by rag pickers and eventually find their way in the recycling factories. Here the bottles are crushed to make PET flakes that are cleaned, cleared of other polymers, hot washed and dried. These flakes can be further processed into fibres (for textile) or injection moulded/ blow moulded for other applications.  The quality of PET is measured in terms of its purity (PPM, particle per million of impurities) and its hardness (Intrinsic viscosity, IV).  The quality of PET flakes is dependent on the input as well efficiency of the washing process.

Market

In India recycled PET (R PET) is not allowed for packaging of food items. The key end use applications of RPET include textiles, PET straps and home furnishing. Nearly 70-80 per cent of R pet is consumed in textile industry.

Products can be made from PET Flakes

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The industry players are of two types, PET flakes manufacturers and integrated players who process the flakes into fibre or other products. The table below describes some of the integrated players.

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Budget

A PET flakes manufacturing unit (comprising PET grinder and washing line) of a capacity of 300 kg per hour can be set up within a budget of Rs. 1 crore.  The land requirement would be around 1000 sft. One also needs to develop a strong network of/chain to collect PET waste.

How can we help?

We can help you set up PET recycling unit through a number of services including market viability assessment, technical consultation and project execution support.

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Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

[1] Source: http://www.petrecycling.in/ and Reliance industries presentation in

ASSOCHAM’s 4th National Conference on ‘Waste to Wealth

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Manufacturing Fruit Bars: Solar Dehydration Technology

Fruit bars are healthy, nutritious and minimally processed,  thus make a great snack. Fruits such as Mangoes and Guavas are very widely cultivated in India. Given their pulpy constitution, these fruits are well suited to be processed into a bar.

Rising demand for healthy snacks, ample availability of fruits and relatively modest capital requirements make fruit bar manufacturing an attractive opportunity for small businesses.

Solar Dehydration Technology

Traditionally fruit bars were made by sun drying the fruit, the process is prone to contamination, making the product unfit for consumption. The process of solar dehydration refers to dehydrating the pulp in solar dryer, which dries the fruit evenly and keeps it safe from contamination. This technology is provided by SEED (Society for Energy and Environment Development), an NGO based in Hyderabad.

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Fruit Bar Manufacturing Process

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Budget

The minimum viable size of the project is 1 tonne per annum  and the cost of machinery (fruit pulper, boiler solar dryer and quality testing equipment) is around Rs. 10 lakhs. The total project including working capital and marketing budget can be set up within Rs. 15 lakhs. The land requirement would be around 800 sft, of which atleast 300 sft should be open space that gets direct sunlight.

How can we help you?

We can help you start a Fruit bar manufacturing unit through a number of services including business viability assessment, technical consultation and support in project execution.

 Reach us

Write to us: bchhatre@finetrain.com, admin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

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Business Opportunity: Candy Manufacturing

Candy is a confectionery made with sugar or chocolate and flavored with fruits and nuts. Candies are popular with adults and children alike and constitute a large market of around Rs. 6,000 crore[1] which is growing at a CAGR of 14 per cent.   The market is broadly divided into two segments: Hard boiled segment (Mango bite) and soft toffee (Éclair). Hard boiled segment accounts for nearly 30 per cent of the market and is growing at 24 per cent.

While the market has a large number of national players (such as Nestle, Parle etc), smaller/local companies have also been able to grow as they are able to offer differentiated product and sell locally. Some of the Hyderabad based players are as under.

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Candy is manufactured by dissolving sugar in the water or milk to make syrup, the syrup is boiled until it reaches desired concentration. The syrup is then cooled and molded into different shapes. The hard boiled candy is boiled for longer time vis a vis soft candy.

Production Process
Picture: 1 – Stages Involved in Candy Production Line

Candy production line

Picture: 2 – Candy Making Unit

Toffee-Depositing-Machine

Budget

Machinery with capacity 2 Ton per day around Rs. 20 Lakhs and the total cost including Land, Labor and machinery cost will not exceed Rs. 40 Lakhs. The minimum land required to put this plant is about 3000 sqft and the area requirement will increase with increase in machinery capacity.

How can we help you?
  • We can help you start a candy manufacturing business through a number of services including business viability assessment, market landscaping and expert consultation.
  • We also offer support in executing your ideas by connecting you with sector experts and professionals.
Reach Us

Write to us: bchhatre@finetrain.com, admin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

[1] Source: http://brandequity.economictimes.indiatimes.com/news/business-of-brands/ds-groups-pulse-candy-the-sweet-that-has-set-the-candy-markets-pulse-racing/51888159

 

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Business Opportunity in Tamarind Processing in India

Tamarind is a popular spice and the products from Tamarind family are being used in Indian food since ages. Tamarind pulp is commonly used in all households, restaurants, roadside eateries etc in food preparations. Not just the fruit, even Tamarind seed powder is extensively used in industries such as Textile, Paper, Confectionary, Cosmetics and Pharmaceuticals.

Opportunity

India is the world’s largest producer of tamarind products, with a production of over 200 thousand tonnes[1]. Tamarind is cultivated in Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Maharashtra, Telangana, Pondicherry and Mizoram (see the picture below).

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The value of the production of tamarind in India is estimated to be around Rs.1608crs[2], exports account for over 11% of the total value. Processed tamarind is exported mainly to European and Arab countries.

Budget

The minimum budget for the plants such as Tamarind Pulp making or Tamarind Seed Powder would be around Rs. 50 Lakh including machinery cost, land cost and labour cost. The biggest challenge in this business is raw material availability and land requirements for storage of raw material. The area required to set up a processing facility would be upwards of 5000 sft.

Budget Estimation for Tamarind Processing Units

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How can we help 

We can help you start “Tamarind Processing Industry” through number services as shown below:

  1. Business viability assessment, market landscaping and expert consultation.
  2. Viability of setting up a Tamarind processing unit.
  3. Identifying most cost effective local suppliers for tamarind manufacturing unit.
  4. Connect you with the experts who can help you in setting up the tamarind processing plant.
  5. Preparing the detailed project report.
Reach Us

Write to us: bchhatre@finetrain.com, admin@finetrain.com

Call us: 800 888 4932

[1] Source: NHB, production figures are for 2014 -15.

[2] Assumed average price of tamarind is Rs. 80/kg which is then converted into tonnage price and multiplied with the total production of 200 thousand tonnes.

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Business Opportunity: Animal Feed Manufacturing

India’s animal feed industry, currently valued at around $ 15 billion[1] is expected to double in the next five years.  The feed consumption is estimated to be 21.5 million tonnes, of which cattle feed accounts for 7.5 million tonnes, aqua feed 1 million tonne and poultry feed around 13 Million tonnes.

The state of Telangana and AP contribute to a large chunk of Indian feed consumption, as can be seen in the table below. Given the large size of the industry and its growth, it presents an attractive opportunity for small and medium enterprises.

Animal feed industry in AP and Telangana

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Competitive landscape of the Industry

The industry is competitive, with international, national and regional companies vying for the market share.  The table below provides information on important players in AP and Telangana.

Animal feed companies in AP and Telangana

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Manufacturing process and budget

The feed manufacturing operations comprise four steps; raw material preparation, mixing and grinding the feed, palletisation and packaging. The plant capacity typically starts from 2-3 tonnes per hour to 15 tonnes per hour.

Animal feed manufacturing process

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An automated plant with a capacity of 3- 5 tonnes per hour can cost up to Rs. 40 lakhs. Considering the machines and raw material inventory and infrastructure required to store the raw material, the budget requirement for the unit could be up to Rs. 1 crore.

How can we Help

  • We can help you assess viability of animal feed and related opportunities through a number of services including market research, detailed viability assessment and technical consultation.
  • We also offer support in executing your ideas by connecting you with sector experts and professionals.

Reach Us

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

Visit us- www.finetrain.com

 

[1] As per Yes Bank report on The Indian Feed Industry – Revitalising Nutritional Security

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Flexible packaging: Opportunity for SMEs

The Indian flexible packaging market stands at $5 billion (Rs. 3.36 thousand Crores)[1] and is growing at little over 15 per cent per annum. Rapid development of personal care, pharmaceuticals, and food and beverages industries is contributing to this demand. Considering this growth opportunity, many international players are entering the Indian market through mergers and acquisitions route. In FY 2014, Finnish company Huhtamaki acquired India based Positive Packaging Ltd, in 2015 Australia based Amcor purchased  Packaging  India Private Limited (a subsidiary of Mumbai based Essel Propack Limited), and more recently in 2016,Essentra Plc, a UK based packaging  acquired pharmaceutical packaging business of India’s Kamsri Printing & Packaging Pvt. Ltd.

Flexible packaging is an interesting business opportunity for Small and medium enterprises (SME), as it allow them to do business with other SMEs.  Majority of flexible packaging demand is from food related industry, an industry largely made of small and medium enterprises. Since the clientele are small businesses requiring customized services, they often need a service provider that is also a small business and is willing to devote time and effort to meet their specific requirements.

Flexible packaging is far lighter and can therefore contain more material per pack, flexible packaging’s pack to product ratio is much lower (1:40 vis-à-vis 1:10 in case of PET packs)[2] as compared to that of rigid packaging. Flexible packaging also allowsmanufacturers to produce packs in functional and complex shapes facilitating user convenience such as squeeze ability and reclose ability. Advance technology in printing provides aesthetic features, thus making products attractive to the final consumers.

1. Market:

India’s annual manufacturing capacity is 30 Million Metric Tonnes[3].The overall flexible packaging end-user industry can be divided in Food and Non-food sector. The food sector comprises 48% of the packaging market at 14.4 MMT/annum; the rest goes to non-food such as Pharmaceuticals, Personal care, Tobacco and others.

1.1  Figure 1[4]:

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In the food sector, the highest share is with Milk and dairy segment. India is the largest producer of milk in the world, at an estimated 40 Crores liters per day and a market size of around Rs. 80,000 Crores[5]Given the large opportunity, many international players such as Nestle, Lactalis SA, Arla foods Savera, Danone, etc. have entered the Indian market. Since cold food supply chain is a challenge in India and dairy products are highly perishable, the demand for high quality packaging that extends the shelf life of the product is evident.

Other than dairy, food sector also comprises packaging needs of confectionery and chocolates, processed fruits and vegetables, etc.

The non-food sector is ruled by the Pharmaceuticals. Indian pharmaceutical industry (Valued at Rs. 9.07 thousand crores[6]) is growing at a CAGR 15%. India ranks third in terms volume and 14th in terms of value, in the world. Pharmaceuticals can further be sub-divided into; Bulk/ drug, Formulations and Devices. While  bulk drugs market is dominated by rigid packaging such as PET containers, glass bottles, metals containers and cans etc, It is formulations and devices that drive the demand for the flexible packaging. Packaging market for pharmaceuticals is difficult to crack due to its inherent challenges in Indian scenario. The two major challenges are:

  • Strict regulations: Pharmaceutical industry requires a superior level of safety to that of food packaging and therefore the packaging provider needs to meet stringent guidelines as per Drugs and Cosmetics Act 1940.
  • Counterfeiting threats: Due to lack of patent protection, manufacturers in pharmaceutical industry are reluctant to share the constituents of pharmaceuticals they produce. The knowledge of constituents is required in deciding the composite of the plastic types and grades to be used in the pack.

2. Flexible Consumer Industry in AP and Telangana:

The table below enlists typical consumer industries and major brands under these industries based in Andhra Pradesh and Telangana.

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3. Raw material requirements and technical specifications:

A flexible packaging material is a combination of many films that are laminated together. Most commonly used raw material includes; BoPP (Bi-axially oriented Polypropylene), Bo PET (Bi-axially oriented Polyethylene terephthalate), Nylon, Polyester, Poly propylene etc.

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4. Cost of project for starting a flexible packaging unit:

To start a flexible packaging unit producing a little over 200MT of laminates monthly, the minimum capital requirement would be upwards of Rs. 6 crores including machines, infrastructure and working capital. The budget would also depend on the market you would like to target and therefore the quality of machines.  The quality of printing machine is critical, as bad printing quality can lead of rejection of the material and adds to the cost.

5. Steps to consider before starting a flexible packaging unit:

First step would be to assess demand and supply of the packaging industry in your area, and identify the niche that you would like to serve. You may want to identify key clients that you would target and accordingly choose your marketing strategy.  You would also need to build a strong technical team that can meet client’s quality expectations, create innovative products and minimize wastage. As such, the following aspects need to be analysed before starting a flexible packaging industry

  • Market opportunity: Number and types of various flexible packaging consumer companies in the market such as FMCG, Personal care, Food and Beverages manufacturers, etc, their current vendors, requirements and pain points.
  • Competitive landscape: Number of players in the targeted market, their product profile, their clientele, number of years in business etc.
  • Production process: Raw material, man power & machinery required
  • Fixed and operational costs and profitability: Estimation on total initial capital required, working capital assessment, projected revenues, earnings and profitability.

Contact us:

Email: admin@finetrain.com

Website: www.finetrain.com

Number: 9032398367

[1] As per UflexLtd. investor presentation

[2]Source: FPA flexible packaging association

[3]Source: Business Standard article – January 15, 2016

[4]Source: www.consultmcg.com

[5]Source: Business today article  – June 5, 2016

[6]Source: Wiki, BDMAI, Ministry of Pharmaceuticals.

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Business opportunity: Flexible Packaging

Flexible packaging refers to packaging that can take various shapes and forms. Most commonly used flexible packaging products include chips packets, milk packets, shampoo and medicine sachets and different types of pouches.

Flexible packaging is a large industry world over, with a size of over $ 200 bn[1]. The Indian market contributes over $ 5 bn and is growing in double digits. The key end user industries are food products, beverages, personal products and pharmaceuticals (see pic-1).

Picture 1: Indian Flexible Packaging Market

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  1. * Others includes pharmaceuticals.
  2. Source: Investor presentation of Uflex

 What is the Technology?

The technology related innovations in flexible packaging industry have focused on increasing the shelf life and safety of the packaged product and protecting it from counterfeiting.

Flexible packaging is made of layers of polymers (LDPE, BOPP, BOPET, CPP), aluminium foil, paper and other material. The topmost layer (most commonly BOPP or BOPET) is printed. The printed layer is laminated along with other packaging material, and then slit into different sheets. These sheets are converted into different forms as per the client requirements. The choice of material depends on the end use; for example in food applications where the shelf life has to be extended, different types of polyethylene and poly propylene films are used.

The printing technology varies depending on the material to be printed, and has been explained in the figure below.

Picture 2: Printing technology

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How is the Competitive Landscape?

The industry has two types of players, large players who manufacture packaging films as well as packaging products and SMES who mostly purchase the films and convert it into packaging products. Further, some of the SMEs are manufacturers of machinery or inks.

Table 1: Flexible packaging-competitive landscape

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What are the Prerequisites to start a Flexible Packaging Industry?

The must haves would include a strong technical team that can meet client’s quality expectations, create innovative products and minimize wastage.  Other requirements include land/area (minimum 5000 sqft for Rotogravure printing) and a budget of Rs. 5 crs upwards.

How can we help you?

We can help you start a flexible packaging business through a number of services including business viability assessment, market landscaping and expert consultation.

Reach us:

bchhatre@finetrain.com

Phone:800 888 4932

 

[1] Source for international and domestic market size is Uflex investor presentation -November 2016

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Business opportunity: Medical Devices sector

Medical devices refer to devices and consumables used by the doctors and hospitals in patient care. It is a multi-product industry comprising consumables, surgical instruments, implants and diagnostic reagents. The industry size is estimated to be INR. 30,000 crores, with imports accounting for 70 per cent of the industry turnover. The industry is growing in double digits.

The sector offers huge opportunity for entrepreneurs to offer cost competitive products that can reduce our dependence on imports and make healthcare more affordable and accessible to all.

What are the key segments?

The market can be divided into four categories, as shown below

Picture 1: Indian Medical device Industry

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Source: Recommendation of task force on Medical Device sector in India-2015

Who are the large manufacturers?

The Indian market is dominated by international players such as Abbott Vascular, GE health care, Phillips health Care, Medtronic, Johnson and Johnson, Siemens, Baxter, Stryker, Zimmer holdings and many more.

Among the Indian manufacturers, there are around 800 companies, majority of them are present in price competitive consumable segment.  Some of the interesting Indian players who have been able to offer technology based differentiated products are as under. (See table 1)

Table 1: Medical devices manufacturers-interesting companies

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Where is the opportunity?

The equipment and surgical segment and implants offer attractive opportunity for manufacturing indigenous products that can reduce our import dependence. These segments have been described in the table below.

Table 2: Attractive segments- Medical device industry

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The opportunity can be broadly be divided into two categories:

  1. Manufacturing Products similar to already existing imported products: For example: surgical sutures, dialysis machines, ECG machines, patient monitoring systems etc. Indian companies can offer more cost effective diagnostic equipment or an implant
  1. Opportunities to create new products that are not available in the market before For example- Cost effective diagnostic solutions for poor and rural population. Some of the companies that work in this area include Forus health care (Eye screening devices) and Biosense Technologies (cost effective solutions for checking blood sugar, anaemia etc).

What are the challenges?

As per Dr. Ashutosh Mundkur, a senior medical device industry professional and start up mentor, a medical device start-up faces following challenges:

Inadequate market research: The market assessment about the need for the device and its ability to either cut the healthcare cost or improve user experience has to be clearly established. Many companies discover their inability to sell the product after they have launched the product in the market

Lack of adequate attention to quality and safety aspects of the device: Many a time’s start-ups are too focussed on reducing the cost of the device to make it competitive Vis a Vis imported products and do not pay enough attention to the quality aspects.

Regulatory hurdles: There is lack of clarity on license required for manufacturing medical devices. As per the current regulations, the CDSCO license (Central Drug Standards Control Organisation) is needed for 14 notified devices[1].  For the remaining, it is left to the state Drug controller office/CDSCO to decide whether a license is needed. However regulatory hurdles are expected to clear after passage of new medical device regulation, which is currently under review and awaits parliamentary approval

Funding: Investor interest in early stage medical device start-ups remains low, due to uncertainty about the device’s potential to make it big and long development time. Some of the funds[2] that have invested in health care start-ups include Avishkar, Acumen, Centre for innovation and entrepreneurship (CIE, IIMA), Unitus, Venture East and Viligro

Conclusion 

With the rising disposable incomes and increasing longevity, the demand for better health care is only going to rise. Medical devices are instrumental in making health care more affordable and accessible.  The ecosystem for the medical device companies is expected to improve with government’s effort to promote manufacturing in India.  As such, growing demand and improving regulatory outlook, make medical device manufacturing a very attractive segment.

How can we help you?

We can help you start a medical device manufacturing business through a number of services including business viability assessment, market landscaping and expert consultation.

Reach us:

bchhatre@finetrain.com

Phone:800 888 4932

[1] As per drugs and cosmetic act fourteen devices are notified as drugs. In addition, eight products including Blood Grouping Sera, Ligatures, Sutures and Staplers, Intra Uterine Devices (Cu-T), Condoms, tubal Rings, Surgical Dressings, Umbilicalfapcs, Blood Component Bags also require drug license.

[2] Source: https://yourstory.com/2013/09/ventures-investing-in-indian-healthcare-sector/

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Business Opportunity – Dairy Products

The Indian dairy industry[1] estimated to be Rs 80,000 Crores and is growing at a compounded annual growth rate of 7%. The growing demand for milk and milk based products is also reflected in increasing per capital availability of milk, which has grown from 225 gms/ day in the year 2007 to 307 gms/day in the year 2015 [2]

Opportunities for small enterprises:
Overview:

The sector can be broadly be divided into two categories, packaged liquid milk and milk based value added products (see below)

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On the other hand, value added products such as flavoured milk, cheese, ghee etc offer an attractive opportunity for small enterprises as they can be started with relatively lower capital (Rs. 50 lakh onwards) and have higher profitability vis a vis packaged milk.The packaged liquid milk segment is mostly dominated by large dairies such as Amul, Heritage, Vijaya, etc. as it requires access to large number of dairy farmers, infrastructure to transport milk and sizable distribution network.

Opportunities:

Flavoured milk:Flavoured milk is one of the fastest growing dairy sectors in the market, because of its popularity among children and teenagers. The milk comes in various flavours such as chocolate and fruits, thus combining goodness of milk with taste. Flavoured milk market size in the year 2015 was at Rs. 2,466 crores and it is expected to grow at CAGR 28 percent.

Organic milk: Organic milk comes from cows that have been grazed on pasture that has no chemical fertilisers, pesticides or agrochemicals.   Increasing awareness about consumption of chemicals and pesticides through milk is contributing to the demand for organic milk.

Though being at a very nascent stage, this sector has seen some action recently with the entry of number of dairy farms in Pune and Mumbai focussing exclusively on organic milk. Further, established dairies such as Parag Dairy have also entered this segment with their brand “Pride of Cows”.

Value added dairy products: Nearly 55% of the milk produced in India is used for manufacturing value added dairy products[3]. More details on value added products are available in the table below.[i]

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How can we help?

We can help you start a dairy based business or expand your existing dairy related business through a number of services including business viability assessment, market landscaping and expert consultation.

Reach Us:

bchhatre@finetrain.com

Phone:800 888 4932

 

[1]  As per the report by Alvarez and Marsal (https://www.alvarezandmarsal.com/) The branded market for dairy products is estimated to be Rs. 80,000 crores. The data for the market size of value added products has also been sourced from the same report.

[2] NDDB.co.in

[i] Report by Alvarez and Marsal

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LED_inn

Business opportunity: LED lights

Demand of LED (Light Emitting Diode) lights is increasing rapidly in India, driven by GOI initiatives to promote LED. As part of its  Unnat Jyoti by Affordable LEDs for All (UJALA) scheme, GOI has proposed to replace 77 crore incandescent bulbs across the country  with LED by 2019.

As can be seen from the table below, LED is far more efficient than Incandescent bulbs and CFL

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Manufacturing Process:

Most important parts of LED  lights are driver, LED diode and body of light. Diode is typically imported from China/Taiwan. However, drivers can be manufactured in India with required specifications and design of PCB.

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The LED unit can be started within a budget of Rs. 10 lakhs, including machinery, marketing and working capital and expenses incurred on quality/BIS certification.

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Market segments and key players

LED lights are used as House-Hold bulbs, Tube lights, Street lights, Solar powered street lights, Automobile, etc.  However, the house hold segment is difficult to enter as one has to compete with large established players such as Bajaj, Syska, Philips, Crompton, Havells, Osram and also with local players who sell imported product. Institutional segment largely comprises government procurement LED under “UJALA” scheme.

Currently, LED demand is driven by the government procurement and one may have to start by contract manufacturing for large companies who supply LED lights to the government bodies.

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 understand the feasibility and viability of LED lightning and related opportunities We also offer support in executing your ideas by connecting you with sector experts and professionals.

 

Reach us

Call us @ 800 888 4932,

Write to us- bchhatre@finetrain.com

Visit us- www.finetrain.com

 

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