Establishment of

Egg Powder Unit

Agro & Food Processing

Government of Gujarat
Contents

Project Concept 3
Market Potential 5
Growth Drivers 7
Gujarat – Competitive Advantage 8
Project Information 10
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower/ Machinery
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 15
Approvals & Incentives 17
Key Department Contacts 18

Page 2
Project Concept

The concept Egg powder

The project envisages
setting up of Egg
Powder Manufacturing
Unit based on the raw
material strength of
Gujarat.
The manufacturing unit
can focus on
production, processing,
marketing, etc.
An egg consists of 3 main parts: the shell (10%), the albumen or egg
white (60%) and the yolk (30%). An average egg weighs about 55-60
gram. Egg, in full or parts, is used to prepare powder used in different
industries:
Whole egg powder (WEP) is used in classical food
applications where rising qualities are not essential,
such as crackers, cookies and pasta.
Egg yolk powder (EYP) is used as a substitute for
fresh egg yolk to obtain colour, texture, and emulsion
capacity. Egg yolk powder is most frequently used in
mayonnaise, dressings, sauces and croissants.
Egg albumen powders (EAP) is used in a range of
items from fish, meat, and potato preparations to
bakery and pastry products.

Egg processing
Manufacture of dried egg powder starts with breaking of eggs and removing egg-shells. After
removal of shells, the mixture is filtered and stored in storage tanks at about 4oC and then it is
taken to tabular heater, wherein it is dried at about 65oC for 8 to 10 minutes and it is filtered and
passed to high pressure spray drier with the help p of highg pressure pump. The material which
comes out of high pressure spray drier is not onlonly ly in
i dried form but also in powder form, which is
then packed in polylined boxes. The average ge yield
yyiiel
eld is
is around
aro 80%. A typical manufacturing process
flow is shown below:

Dried shell packing

Breaking and storage

Whole egg Egg yolk Egg albumen

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

WEP EYP EAP

 Packing  Packing  Packing

 Storage below 20oC  Storage below 20oC  Hot room storage at
 Storage at ambient  Storage at ambient ambient temperature
temperature temperature

Page 3
Project Concept

Global market overview

 Asia dominates the global egg production, accounting for around 60% of the total, followed by
Americas and Europe.
 Asia encompasses five of the top 10 national producers of eggs, with India and Japan at third
and fourth positions in the world ranking.
World egg production (2013)
Top 5 egg producing countries (2013) Region Prod (million tonnes)
Country Prod (million tonnes) Asia 40.0
China 28.8 Americas 14.0
USA 5.6 Europe 10.9
India 3.8 Africa 3.1
Japan 2.52 Oceania 0.3
Mexico 2.51 World 68.3
Source: WATTAgNet, accessed 28 July 2016 Source: Global poultry trends 2014

 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 calories
from protein sources like poultry meat and eggs.

Indian market overview

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

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

 The largest producer of egg is Andhra Pradesh (Including
Telangana) which produces 30.5% of the total egg
production in the country.
 Tamil Nadu ranks second, producing 18.9% of the egg
production.
 Maharashtra, West Bengal and Haryana hold the next
three ranks producing 6.5%, 6.4% and 5.8% of the total
production respectively.
 Gujarat ranks 11th in the country in terms of egg production,
contributing about 2.1%.

Page 4
Market Potential

“ India is a small player in the global egg powder industry, currently. But Indian egg processors can
scale up their operations significantly to catch the market share, since India is the 3rd largest egg
producer in the world.
” ~ Shree Shivkumar, MD & CEO, SKM Egg Products

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 cost
of INR 1.1 per egg makes it much lower than all the other major
producers
Note: All statistics mentioned above are as of 2016.

“ Low cost of egg production, high productivity, rise in egg consumption in the north owing to
growing per capita income of a young and increasingly urban population and emerging export
markets are certain key growth drivers of egg production in India.
”
~ D.S. Rawat, National Secretary General, ASSOCHAM
Egg production (All India - Million Nos.)
Egg production:
 During 2009/10 and 2013/14 egg production CAGR 5.5%
in India has increased by around 5.5%
thereby reaching 74,752 million in the year 69,731 74,752
2013-14. 63,024 66,450
60,267

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

Egg availability:
Per Capita Availability of Egg (Number/Annum)
 During 2009/10 and 2013/14 per capita egg
availability in India has increased by around
4.6% thereby reaching 61 eggs in the year CAGR 4.6%
61
2013-14. 58
53 55
51

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

Source: Basic animal husbandry & fisheries statistics 2015

Page 5
Market Potential

India – lowest-cost egg producer

The shell eggs are cheapest in India, though the inputs cost is not the lowest. However, due to
improved efficiencies achieved by the farmers by producing more eggs per hen, India ranks one of
the lowest in terms of price of egg production. Growth of the industry can be appreciated by
following figures:
Parameter 1990 2015
Layer 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

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, a
growth 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.

Hong Kong, Saudi Arabia, Kuwait and Russia start importing

Due to stricter animal health norms enforced by the countries and due to the outbreak of avian
influenza 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, thereby
generating a huge market potential.
 Hong Kong announced the opening of its market for eggs in December 2015. The Hong Kong
market 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 exporters
from 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.

Page 6
Growth Drivers

1 Increasing health Considering the increasing cholesterol related health issues, liquid
consciousness white egg is expected to provide good returns to egg powder units
in the years to come.

2 R&D to increase shelf

Units that succeed in increasing the shelf life of products will be
life of products
more competent to penetrate/expand in overseas markets.

Being an Export Oriented Unit, appreciation of Dollar and Euro

3 Dollar and Euro
against Indian Rupee is positive for the unit. Strengthening of
appreciation
Dollar would reduce the competitiveness of US manufactures in
foreign markets especially in Japan, which is a key importer of
processed egg products.

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

 In the last two years, many economies have opened up for

5 Rising foreign import of processed egg products from India – Hong Kong,
demand, limited Saudi Arabia, Kuwait, Russia.
processing units  Currently there are only four-five egg powder processing units in
the country. And most of them are based out of South-India.
Hence, there exists a potential to open up new units in other
parts of the country.

Page 7
 Gujarat - Competitive
Advantage
1 Gujarat – one of the top five states to over-achieve production targets
 Uttar Pradesh, Punjab, Tamil Nadu, Sikkim, Gujarat, Chhattisgarh, Maharashtra, Andhra
Pradesh (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 the
production and consumption, the option of processing is worth exploring.
129
Egg production (% achievement)
105

26

Arunachal…
Tamil Nadu

Meghalaya
Karnataka

J&K
Uttar Pradesh

Gujarat

Assam

Mizoram
Maharashtra

Manipur
Chhattisgarh

Uttarakhand
Madhya Pradesh

D&N Haveli
Punjab

Sikkim

Chandigarh

Tripura

Kerala
Puducherry

Orrisa
Andhra Pradesh

Jharkhand
Bihar

West Bengal
Himachal Pradesh

Nagaland
Haryana

Rajasthan
Source: Basic animal husbandry & fisheries statistics 2015

2 Eggs – a key livestock product for Gujarat

Eggs form one of the key livestock products for Gujarat’s economy. Gujarat contributes 2.1% to the
country’s egg production. Egg production (Gujarat – Million Nos.)

Eggs (Million nos.) 2013-14 CAGR 5.4% 1,555

Gujarat 1,555 1,427 1,456
(% contribution in India) (2.1%)
1,327
All India 74,752
2010/11 2011/12 2012/13 2013/14
Source: Basic animal husbandry & fisheries statistics 2015

3 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.
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
Source: Basic animal husbandry & fisheries statistics 2015

Page 8
 Gujarat - Competitive
Advantage
 Gujarat – Universities offering animal husbandry courses –
4 reducing the skill gap in the industry
 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 has
other colleges offering full time and diploma courses in polytechnic and animal husbandry.

University College
Gujarat Agriculture College of Veterinary Science & Animal Husbandry, Anand
University
Banaskantha College of Veterinary Science & Animal Husbandry, Sardar Krushi Nagar

5  Availability of poultry feed ingredient

 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 used
as an energy source. It is high in energy but low in protein. Other energy sources include
sorghum and millet.
 Gujarat grows maize, both in Kharif and Rabi season, and hence ensures undisrupted supply of
key feed ingredient.

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

Area (mn hectares) Production (mn tonnes) Yield (kg/hectare)
Gujarat 0.46 0.69 1501
(% contribution in India) (4.9%) (2.8%)
All India 9.43 24.35 2583
Source: Agricultural Statistics at a Glance 2014

6  Other advantages
 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 as
export market.
 Furthermore, Gujarat is near to Gulf and Far East Asian countries, which have good export
potential of the product.
 There is a regional and seasonal imbalance of demand and production of eggs. Therefore it is
quite logical to process eggs in surplus areas and at the time of glut. Major egg producing areas
are near to major consuming centres in South Gujarat and Maharashtra.

Page 9
Project Information

Suggested plant location

The preferred location will be Central and South Gujarat as major poultry farming activities are
conducted 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 a
prime factor for choosing the project location (closeness of key raw material producers).
Mehsana
Kutch
Ahmedabad Top egg producing districts in Gujarat (2012-13)
Anand District Egg production
(% of Gujarat’s egg produce) Million nos.
Anand (48) 702.9
Bhavnagar (16) 239.4
Surat Ahmedabad (7) 100.3
Navsari
Surat (5) 73.4
Bhavnagar
Navsari (4) 52.2
Mega Food Park (MFP) Source: Directorate of Animal Husbandry, Gujarat
Egg producing district

List of MFP’s in Gujarat

Name Location
Gujarat Agro Mega Food Park Pvt. Ltd Surat
Adani Ports and Special Economic Zone Ltd Kutch
Fanidhar Mega Food Park Ltd. Mehsana

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

 Supported and Approved with Central and

State Governments
 Strategically located to cater to all key markets
both domestic and export - 6 Crore Local
Population
 Located strategically for sourcing raw material
 Availability of Warehouses, Cold stores, Reefer
vans and other transport vehicles
 Zone with large manpower supply

Page 10
Project Information

Plant capacity and cost

Estimated project cost for manufacturing of egg powder having 240 MT per year plant capacity is
INR 1.5 – 1.8 crores.

Existing players - Project capacity and cost (at the time of set-up)
Player Capacity Location Year Cost (INR
Capacity established crores)
SKM Eggs 18 lakh eggs/ day Tamil Nadu 1997 35.5
6,500 tonnes powder/ year
Venkateshwara 18 lakh egg/ day Andhra 1995 37.0
Hatcheries Pradesh
Ovobel Foods 2500 tonnes powder/ year Karnataka 1993 17.5

Western Foods 772 tonnes powder/ year Ambala 1992 7.1

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

Scale is the key

There are many benefits of establishing a large scale unit in poultry industry as compared to
setting up a small/medium scale unit:
 Larger units go for bulk purchases, seasonal purchases at harvest and even go for import of
feed ingredients. The production costs can be managed.
 Mechanisation in feed production, feeding the birds and egg handling is possible with larger
units.
 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 biosecurity
protocols to prevent diseases.

Page 11
Project Information

Connectivity and Infrastructure

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

The MFP is in close proximity to major railway
stations in Gujarat:
 Surat Railway Station – 50 kms
 Vadodara Railway Station – 130 kms
 Ahmedabad Railway Station – 240 kms
 Rajkot Railway Station – 425 kms
The MFP has a very good connectivity with
other cities in Gujarat and industrial hotspots:
 Mumbai – 220 kms - The Mumbai-
Ahmedabad highway (Golden Corridor for
industry) is a key transport corridor
 Ahmedabad – 250 kms via NH48
 Surat – 50 kms
 Vadodara – 130 kms

Proposed
 A multi-modal transportation hub is planned to
be developed at Surat railway station
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
 The MFP is connected to several leading sea
ports such as Hazira, Nhava Sheva,
Kandala, and Mundra sea port.
 Most of the sea ports are within 350 km from
Surat.

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 become
operational by 2018.

 All plots in Gujarat Agro MFP are equipped with Power, Water, Sewerage and Effluent
Treatment Plant (ETP) connections.
 Cold storage (Central and Primary Processing centre) facility for upto 5500 MT capacity is
available; Warehousing capacity available.
 Solar power generation to take care of common maintenance of MFP.

Page 12
Project Information

Raw material requirement

 The major raw material required is fresh eggs and the daily requirement is ~20,000. Prior
confirmed arrangements for this quantity are necessary.
 The unit can source its egg requirements by entering into long-term contracts with poultries in
Anand, Ahmedabad and other egg producing regions. Or, it can also plan for a poultry farm to
internally source part of its daily egg requirement, thereby reducing its dependency.

Manpower requirement
An estimated 26 people would be required, including both supervisory staff as well as workers, to
manage the facility. The unit would have to recruit both regular employees as well as contracted
labor.
Particulars Number
Supervisory 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

Machinery suppliers

Belgium Haryana

Denmark

Agra

Page 13
Project Information

Possible collaboration
 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 transform
food processing industries.
 Additionally, it has established a Technology incubator called "NutraPhyto Incubation Centre"
for the entrepreneurs to experiment with model industries and take them forward towards
successful commercial ventures.

Key considerations
Raw material Procuring eggs in lakhs per day is not easy to replicate by any new entrant
procurement in this field. In order to overcome this challenge, the unit would have to
establish its own farms to source their requirement in part/full. However,
despite sourcing its egg requirements from own farms, any adverse change
in the price of feed ingredients may affect its raw material cost.
Import Being a food ingredient, import permission to developed countries is not
restrictions easy.
High quality Ensuring the quality of feed and arranging periodic visit of veterinary doctors
standards to ensure the health of birds is essential. Since the end consumers are large
MNC food companies, stringent quality standards are to be met.
High entry Since the competition is mainly with foreign firms, it can take years to
barrier establish the label of a reliable and quality supplier in overseas markets.

Page 14
Project Financials
 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.
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

Page 15
Project Financials

Implementation model
 The project can be a joint venture between the owner company and the state’s agriculture
department, i.e. Gujarat Agro Industries Corporation Ltd.
 The company may have to enter into a tie up with a foreign collaborator for technology/ for
sourcing plant and machinery. Technology tie up can also be made with CFTRI (Central Food
Technological Research Institute), Mysore, as mentioned previously.

Existing players – Implementation model

SKM 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 – Venkateshwara  Ovotec International of Belgium holds 6.92% of the equity in the
Hatcheries company
 Technological assistance for the unit from Food Engineering
Services, US
Ovobel Foods  Food Processing Ministry to hold a 5% stake in the company's
equity
 Technical and financial tie up with Ovobel SA of Belgium
Western Foods  Financial collaboration with Haryana Agro Industries Corporation
Limited (HAIC) and Haryana State Industrial Development
Corporation Limited (HSIDC)
 Foreign Collaboration Agreement with Sanovo Engineering,
Denmark for technical know-how for the project

Page 16
Approvals & Incentives

Approvals
 The proposed unit will have to register itself with Secretariat of Industrial Approvals (SIA), Ministry
of Industries and Government of India, by filing Industrial Entrepreneur’s Memorandum (IEM), if it
has plant and machinery investment of more than INR 10 million.
 The unit will require registration of its products with Foods and Drugs Administration (FDA) in
exporting countries, apart from registration with Indian and state food administrations. The most
critical aspect of this product will be its shelf life for export consumers and hence there will be
need for meeting FDA regulations in consuming countries and Codex standards followed by
them.
 The unit will register itself with Ministry of Food Processing Industries (MoFPI) for availing
subsidy benefits. The unit will also register itself with RBI, DGFT and with APEDA as registered
manufacturer 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.

Page 17
Approvals / Incentives

Incentives by Government of Gujarat

Gujarat government announced its Agri Business Policy – 2016 with emphasis on promoting
food processing industry by developing the entire value chain of exporting locally grown farm
produces.
 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

Incentives and financial assistance to units in Gujarat Agro

Infrastructure 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

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

Page 18
Approvals & Incentives

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 billion
of investments over the next 10 years and also generate employment of nine million person-days.

Some of the major initiatives taken by the Government of India (GoI) to improve the food
processing 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 simplify
the process by setting shelf-life norms and relaxing labelling guidelines.
 The Ministry of Food Processing Industries announced a scheme for Human Resource
Development (HRD) in the food processing sector. The HRD scheme is being implemented
through State Governments under the National Mission on Food Processing. The scheme
has the following four components:
 Creation of infrastructure facilities for degree/diploma courses in food processing
sector
 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 had
announced the setting up of an INR2000 crore fund in NABARD for providing loans to
entrepreneurs setting up food processing businesses in designated food parks.
 Ministry of Food Processing Industries has launched “Mega Food Park Scheme” to boost
the Indian food processing sector and facilitate creation of modern infrastructure for food
processing such as processing center-cum-cold chain in identified clusters, processing of
intermediate products, centralized infrastructure to take care of processing activities. Going
forward, investments, including FDI, would rise with strengthening demand and supply
fundamentals in India.

Page 19
 APEDA – Agricultural & Processed Food Products Export Development Authority
http://apeda.gov.in/apedawebsite/
Food Safety and Standards Authority of India
http://www.fssai.gov.in/
National Egg Coordination Committee
http://www.e2necc.com/
Ministry of Food Processing Industries
http://www.mofpi.nic.in/

Agriculture and Co-operation Department

www.agri.gujarat.gov.in/index.htm

Gujarat Industrial Development Corporation

www.gidc.gov.in/

Industries Commissionerate
www.ic.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.

Gujarat Agro Industries Corporation Limited

Gujarat State Civil Supplies Corporation Ltd Building
2nd Floor , "B” Wing , Sector 10A,
Gandhinagar – 382010, Gujarat, India
Phone / Fax : 079-23240208
Email: md-gaic@gujagro.org
https://gaic.gujarat.gov.in/