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Report on Business Opportunity Identification Study of Meghalaya

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Report on Business Opportunity Identification Study of Meghalaya CONTENTS Page Sr. No. Items No. 1.0 Background 1 2.0 Objectives 3 3.0 Methodology 3 4.0 Findings of the Study 4 4.1 Economy of Meghalaya 4 4.2 Status Study of Resources 5 4.2.1 Agri Resources 5 4.2.2 Horticultural Resources 7 4.2.3 Mineral Resources 10 4.2.4 Live Stock and Dairy 11 4.3 Study of Industrial Infrastructure 15 4.3.1 Land and Building 15 4.3.2 Power 16 4.3.3 Transportation and Communication 17 4.4 Status of Traditional Crafts and Skill Availability 18 4.5 Policy Environment for industry promotion and growth 19 4.5.1 Meghalaya Industrial investment promotion policy 19 4.5.2 The Meghalaya Mines and Minerals Policy 20 4.5.3 Meghalaya Tourism Policy 21 4.5.4 Information Technology Policy 22 Integrated Business Development & Livelihoods 23 4.5.5 Promotion Progamme (IBDLP) 4.6 Status Study of Industrial Profile of Meghalaya 24 4.6.1 Status of Small Scale Industries 24 4.6.2 Status of Medium and Large Enterprises 26 4.7 Potential Business Opportunities 29 4.7.1 Agro and Horticulture 29 4.7.2 Mineral Based 30 4.7.3 Tourism 31 4.7.4 Education and Information Technology Related 33 4.7.5 Healthcare 34 4.8 Limitations of the Study and Critical Advisory 34 4.9 Project Profiles 35 Annexures Annexure 1 Meghalaya Map 38 Annexure 2 Format for Secondary Data Collection 39 Annexure 3 List Of Secondary Data Sources Referred For Study 41 Annexure 4 List Of Resource Persons Interviewed For Study 42 Annexure 5 List of Medium & Large Scale Units 44 Annexure 6 Project Profiles 87-291 List of Project Profiles Project Cost Page Sr. No. Name of Products/Services (Rs. In lacs) No. 1. Jackfruit Products 13.00 48 2. Lime Processing 152.00 54 3. Mushroom Processing 12.15 60 4. Potato Processing 9.76 65 5. Rice Mill 13.64 71 6. Spice Grinding 9.48 76 7. Bee Keeping 1.55 81 8. Cakes and Pastries 11.97 87 9. Cold Storage 31.48 92 10. Mustard Oil 11.33 96 11. Mustard Powder 20.80 101 12. Passion Fruit squash 10.94 105 13. Pineapple 189.78 109 14. Pineapple and Orange Products 11.75 115 15. Bleached and Dehydrated Ginger 6.30 119 16. Solar Dryers 11.18 124 17. Solar Lanterns 6.11 131 18. Solar Photovoltaic Gadgets 6.15 135 19. Solar Hot Water Systems 5.78 140 20. Packaged Drinking Water(Mineral Water) 127.11 146 21. Sericulture 0.35 153 22. Pig Rearing 2.13 159 23. 2-Octanol 175.25 164 24. Beaten Rice 13.31 171 25. Canned Bamboo Shoots 13.44 176 26. Chilli Pickles 3.45 181 List of Project Profiles Project Cost Page Sr. No. Name of Products/Services (Rs. In lacs) No. 27. Fish Meal 14.45 185 28. Tamarind Powder 9.00 190 29. Betel Nuts 14.75 193 30. Cashew Processing 11.00 199 31. Consumer Electronics 3.62 204 Multi-Purpose Computer centre for IT 10.48 32. 209 enabled services Cyber Cafe 33. Bamboo Products 0.44 217 34. Medicinal & Aromatic plants 0.83 221 35. Ground Minerals 23.80 225 36. Meat Gravy Concentrate 19.58 231 37. Granite Tiles Unit 16.04 239 38. Lime Kiln 1.63 243 39. Honey based Beverages 18.80 247 40. Honey Cream Manufacturing 7.34 250 41. Honey Jam Manufacturing 5.48 253 42. Honey Jelly Manufacturing 5.29 256 43. PP Files and Folders 49.45 259 44. HDPE Lube Oil Container 29.70 265 45. LLDPE Zipper bag 65.00 270 46. LLDPE Agriculture Film 97.00 274 47. LLDPE Printed Shopping Carry Bag 83.00 278 48. Tourist Village 15.00 283 49. Spa Services 8.10 288 1.0 Background Meghalaya is one of the Eight Sister States of North East India.Tribal people make up the majority of Meghalaya's population. The Khasis are the largest group, followed by the Garos and then the Jaintias. Meghalaya is basically an agricultural state with about 80% of its population depending entirely on agriculture for their livelihood. Nearly 10% of the geographical area of Meghalaya is under cultivation. Agriculture in the state is characterized by limited use of modern techniques and low productivity. A substantial portion of the cultivated area is under the traditional shifting agriculture known locally as “Jhum” cultivation.As a result, despite the vast majority of the population being engaged in agriculture, the contribution of agricultural production to the state’s GDP is low, and most of the population engaged in agriculture remain poor. Moreover, the state is still dependent upon imports from other states for most food items such as meat, eggs, food grains etc. Rice is the dominant food grain crop accounting for over 80% of the food grain production in the state. Other important food grain crops are maize, wheat and a few other cereals and pulses. Besides these, potato, ginger, turmeric, black pepper, areca nut, tezpatta, betelvine, short-staple cotton, jute, mesta, mustard and rapeseed etc. are some of the important cash crops. Besides the major food crops of rice and maize, the state is renowned for its horticultural crops like orange, lemon, pineapple, guava, litchi, banana, jack fruits and temperate fruits such as plum, pear, peach etc.Oilseeds such as rape, mustard, linseed, soybean, castor and sesame are grown on nearly 100 kms. Rape and mustard are the most important oilseeds accounting for over two-thirds of the oilseed production of nearly 6.5 thousand tonnes. Climatic conditions in Meghalaya permit cultivation of large variety of horticulture crops including fruits, vegetables, flowers, spices and medicinal plants. The important fruits grown include citrus fruits, pineapples, papayas, bananas etc. The ‘mandarin oranges’ grown in Meghalaya are of very high quality. In addition to this, a large variety of vegetables are grown in the state, including cauliflower, cabbages and raddish.Areca nut plantations can be seen all over the state, especially around the road from Guwahati to Shillong. Other plantation crops like tea, coffee and cashews have been introduced lately and are becoming popular. A large variety of spices, flowers, medicinal plants and mushrooms are grown in the state. Meghalaya is considered to have a rich base of natural resources. These include minerals such as coal, limestone, Sillimanite, Kaolin and granite among others. 1 Meghalaya has a large forest cover, rich biodiversity and numerous water bodies. Meghalaya has much natural beauty, and the state government has been trying to exploit this for promoting tourism. All these rich resources offer great potential for setting up small/micro enterprises in the State. The State Institute of Rural Development (SIRD), Govt. of Meghalaya has entered into a MoU with Entrepreneurship Development Institute of India (EDI), Ahmedabad for training 10,000 entrepreneurs over a period of three years. To promote local resource based enterprises and to promote entrepreneurship and business development, it is felt that there is an urgent need to carry out Business Opportunities Identification exercise in Meghalaya. The availability of project profiles on viable business opportunities in the State would go a long way to counsel and guide the potential entrepreneurs in setting up of businesses. It is found everywhere that entrepreneurs respond to business opportunities very quickly. As Meghalaya has excellent natural resources and due to its size, it offers wide variety of business opportunities in manufacturing as well as service sector. 2.0 Objective The objective of this exercise was to carry out detailedstudy throughout the State of Meghalaya to generate viable business ideas based on availability of local resources, local skills, local needs and demand. Secondary objective was to generate data/ information on existing natural resources and ways of utilization to promote small enterprises. Moreover, the exercise was also to focus on existing industries, trade flows in the State and service sector status and future scope. In all, it was expected that this exercise would lead toidentifying about 50 viable business opportunities and preparing project profiles on each identified opportunity based on local conditions. 3.0 Methodology The exercise of identifying business opportunities was undertaken in association with local resource persons of SIRD so that in the process they also are trained in identifying opportunities and in future they can do this exercise independently. The study methodology employed comprised of two phases. The first phase involved exhaustive secondary data search and desk research. The entire exercise, both of secondary data search and primary data collection through field survey was carried out in four major districts of the state namely Jaintia hills, East Khasi Hills, West Khasi Hills, East and West Garo Hills districts. A map showing locations of field visits is attached as Annexure I. 2 For secondary data collection, a format was developed which is placed as Annexure- II. More than 25 different published reports and data sources were scanned and studied by EDI team for first two to three weeks. In Annexure III list of secondary data sources referred is given. The field survey was carried out by a team of two senior faculty members of EDI assisted by 5 to 6 project personnel from SIRD and covered all major districts of the state. During the visit, the team interacted with about 25 organisations, individuals, existingentrepreneurs, associations and government officials to seek their views on viable business opportunities. Details of the resource persons interviewed are given in Annexure-IV. Data collected during this research as well as field interviews was analysed in detail with focus to identify viable business opportunities and assess their technical, marketing and financial viability.
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