One Economic Cluster for Each Mandal for Development of Rural Telangana

ONE ECONOMIC CLUSTER FOR EACH MANDAL FOR DEVELOPMENT OF RURAL TELANGANA

Appeal

In this report we have listed one hundred models of economic activity that can be taken up in rural/ semi urban locations. Possibly many more ideas will come from entrepreneurs and industrialists. These are not new ideas nor is the concept of clusters, for survival, growth, from agglomeration economies and joint action benefits. What we would like to happen is bringing in improved technologies, tools and provision for innovation of products and process. The basic idea is to identify the inherent strengths of a small geographic area (One Mandal) in terms of resources, skills or simply aspirations of the people and use these strengths in a focused way to build one wealth creating activity touching sizeable number of people.

While the intentions are there, we have not made any headway on this.

After reviewing the situation TEMPO has come to the conclusion that apart from initiatives of Government, local leadership need be sensitized to the possibilities and nudge them to take part in this development effort. This report is a guide for all stakeholders to understand the concept and contribute to the effort.

Support from Civil society

Decentralization is the key: The local administration and local leadership at mandal level have to be the torch bearers for this development effort. Selection of suitable cluster, identification of land wherever required and identifying entrepreneurs should be done here. We appeal to local leadership to form an “economic cluster development” team and pursue the selected project.

Marketing: After entrepreneur, critical factor for enterprise growth is marketing of the produce. We appeal to the members of “chambers of commerce”, “varthakasanghalu” and successful entrepreneurs to extend a helping hand.

Project formulation and hand holding: The ideas suggested are mere concepts. These have to be developed into implementable plans with identification of suitable technologies, tools and infrastructure needs. We appeal to the Non-Government Organizations having the required human resources to adopt one cluster each.

Support from Government

1. Provide infrastructure for micro and small industries wherever possible: Land if available, power supply, water supply and road connection may be provided at Government cost. Special cell may be created at Mandal level to help the entrepreneurs with the TS-i pass application filing.

2. Provide marketing infrastructure. Major part of the clusters suggested fall into agro and food related items. Marketing centres similar to Rythu bazars may be provided for processed food products from rural enterprises. A multistoried building with shop in shop model to house 300 to 400 kiosks may be constructed and given on lease at nominal rates. Provision at bus stations may be made to support marketing of such products. Similarly agriculture input centers may be constructed and given on lease to micro enterprises from rural areas.

3. Seed the cluster. Help the first five units (pioneers) to be set up, with additional assistance over and above that provided under TS-ipass. Mother units to be set up by companies already in same industry may also be provided special assistance

4. Support knowledge centers: Use the skill development initiative of Government of India to formulate at least two units of each proposed cluster as training units. This can be done at various training facilities in public and private training institutions, ITI and engineering/ agriculture colleges.

5. Support pipeline for finance: NABARD and MUDRA bank will be main source of financial assistance. Help setting up a stream lined on line processing system for financial assistance.

We will end with a forward looking statement

One economic cluster for the four hundred odd mandals, each with investment flow of about twenty five crore rupees over a period of five years will add wealth of at least thirty thousand crores per year to state gross domestic product. The twenty thousand enterprises can provide five lakh manufacturing jobs with significant multiplier effect to T state economy. Note from compiler of the Information

Following pages contain brief description of hundred projects each of which can be multiplied to form a cluster. The information has been gathered from project profiles prepared by institutions like Dc MSME and NSIC. Selection is made on the basis of relevance to Telangana. The emphasis is on rural Telangana.

These profiles have been prepared at TEMPO (Telangana entrepreneur motivation and promotion organization), a NGO. The profiles are divided into twelve themes. In our view one or two districts can take up one theme. Many of the projects can be replicated at more than one place.

This is our wish list for Telangana. We can add more as we move forward. The aim behind this compilation is to put together available information at one place. This can act as a

reference point. Our fond hope is that these schemes get implemented and a large pool of Telangana entrepreneurs emerges from this effort.

The profiles are in concept form. They have to be developed into feasibility studies based on the location selected. Most of the projects are in operation at some place or other. We need bring in the latest technology and innovate on the products. TEMPO team would be happy to help any organization interested in developing any of the projects.

B. Ranadheer Reddy [email protected]

Mob: 9490746716 www.tempo.org.in

INDEX

Agro based clusters Page No 01 Bio fertilizers 9 02 Densified total mixed ration blocks 10 03 Exotic vegetable cultivation under poly houses 13 04 Flowers-Aromatic plants and Perfumes 14 05 Fortified vermi compost 16 06 Mushroom cultivation 18 07 Silage and cattle feed 22 08 Tissue culture and micro propagation 24 09 Vertical farming 26

Building material clusters 10 Builders` hardware 27

11 Ceramic products 28 12 Door and window frames 29 13 Fly ash based products 31 14 Gypsum fiber board 34 15 Natural fiber composites 36 16 Prefab building elements 38 17 Tiles from waste polymers 39 18 Terracotta products 40

Electric and electronic unit clusters 19 Assembly of electric/ electronic products 41 20 Electronic security systems 43 21 Energy efficient pumps and motors 45 22 Instruments and controls 46 23 Micro circuit breakers 46 24 Micro motors 48 25 Rechargeable batteries 49

Energy Related clusters 26 Electric bicycle 50 27 Energy plantations 52 28 Solar energy appliances 53 29 Solar Thermal energy 54

Engineering product clusters 30 Agriculture implements 57 31 Air conditioner assembly 58 32 Castings 60 33 Cluster for mold manufacture 61 34 Environmental engineering products 62 35 Hand tools and power tools 64 36 Hospital furniture 65 37 Kitchen appliances 66 38 Process equipment 67 39 Reconditioning of machinery 69 40 Rural engineering cluster 71 41 Valves and fittings 72 42 Wire drawing and ferrocement products 73

Food processing clusters 43 Assorted chikki and cereal bars 75 44 Bee keeping and honey products 77

45 Cereal Flakes 79 46 Dry milling of maize 81 47 Fish processing 83 48 Liquid Jaggery 84 49 Malt from cereals 86 50 Masa flour 86 51 Meal packs for soldiers 88 52 Meat products 88 53 Milk products 90 54 Millet products 93 55 Mini food park 94 56 Natural fruit flavors 97 57 Neera and fruit wines 98 58 Nuts and dehulled seeds 100 59 Ready mixes 101 60 Sauces and different salsa 102 61 Solar dried fruits and vegetables 103 62 Soya cluster 105 63 Spices and food additives 106 64 Sweet corn products 107 65 Tomato, mango pulp 108 66 Vinegar and vegetables pickled in vinegar 110

Leather Products cluster 67 Sports shoe 111 68 Synthetic leather for shoe and upholstery 112

Livestock based clusters 69 Cattle rearing 114 70 Dairy farms 115 71 Desi poultry meat 116 72 Duck meat 116 73 Fish farming in cages 117 74 Goat and sheep farming 119 75 Pork production 121 76 Rabbit meat 122

Miscellaneous clusters 77 Adhesives and sealants 123 78 Ayurvedic medicines 124 79 Biodegradable disposable plates 125 80 Costume jewelry 127

81 Domestic cleaning products 129 82 Fermentation products 130 83 Handicrafts, Toys and gifts 131 84 Herbal cosmetics 133

85 Packing materials 134 86 Personal hygiene products 136

Plastic products clusters 87 Foam products 137 88 Medical disposables 139 89 Plastics for agriculture 140

Textiles clusters 90 Embroidery works 141 91 Hosiery and kids wear 142 92 Knitted cloth and dyeing 143 93 Mosquito screens 148 94 Readymade garments 149 95 Technical textiles 150 96 Upholstery and bed linen 151

Wood and wood substitutes 97 Bamboo composite panels 152 98 Finger jointed wood 154 99 Furniture and Other wood products 156 100 Modular cabinet making 159 101 Wood polymer composites 161

01. Bio Fertilizers and Bio Pesticides

A Bio fertilizercontains living microorganisms which, when applied to seeds, plant surfaces, or soil, colonizes the rhizosphere or the interior of the plant and promotes growth by increasing the supply or availability of primary nutrients to the host plant. Bio-fertilizers add nutrients through the natural processes of nitrogen fixing solubilizing phosphorous. Bio-fertilizers such as Rhizobium, Azotobacter, Azospirilium and Blue green algae (BGA) have been in use for a long time.Rhizobium inoculantis used for leguminous crops. Azotobacter can be used with crops like wheat, maize, mustard, cotton, potato and other vegetable crops. Azospirillum inoculations are recommended mainly for sorghum, millets, maize, sugarcane and wheat. BGA fix atmospheric nitrogen and are used as inoculations for paddy crop grown both under upland and low-land conditions. BGA in association with water fern Azollacontributes nitrogen up to 60 kg/ha/season and also enriches soils with organic matter. Other types of bacteria, so-called phosphate-solubilizing bacteria, such as Pseudomonas putida strain P13,are able to solubilize the insoluble phosphate from organic and inorganic phosphatesources. Biopesticides: 'biological pesticides', include several types of pest management intervention: through predatory, parasitic, or chemical relationships. They are obtained from organisms including plants, bacteria and other microbes, fungi, nematodes, etc.They are often important components of integrated pest management (IPM) programs, A major growth area for biopesticides is in the area of seed treatments and soil amendments. Fungicidaland biofungicidal seed treatments are used to control soil borne fungal pathogens that cause seed rots, damping-off etc. Other products in the category are:

 beneficial nematodes attacking insect (e.g. Steinernemafeltiae) or slug pests  plant diseasecontrol agents: include Trichodermaspp. and Ampelomycesquisqualis  Insect pheromones and other semiochemicals  Biopesticides may include natural plant-derived products, which include alkaloids, terpenoids, phenolics.

Proposal Production capacity: 200 tons per year Bio fertilizers and Bio pesticides are produced commercially by multiplication of theorganism in a medium that provides the conditions for growth and the nutrientsrequired. This is done in bio reactors (Fermenters). Some like BGA are multiplied in water tanks.

Land and Building Rs. in lakhs

1. Cost of Land : 0.00 2. Land Levelling : 1.00 3. Fencing & Compound Wall and Gates : 5.00 4. Civil structure : 30.00

Plant Machinery and Equipment

Essential equipment for strain : 20.35 maintenance and quality control glassware

Fermentation & bio mass up-scaling : 65.00 Equipment and machines

Product handling, packaging : 32.50 equipment and machines and storage

Interest during gestation/ : 3.50 construction period Margin money for Working Capital : 2.37 Preliminary and Pre-op.expenses : 2.20 Total Project Outlay : Rs.161.92 Lakhs

This activity can be taken up at a much smaller scale, even by SHG.Swaminathan foundation is propagating this know how. The ideal scheme would be to promote one medium scale unit and 25 micro units at one location. The larger unit can take care of technical, quality aspects while the small units can concentrate on manufacture (multiplication). Owners of the smaller units will be the marketing personnel.

02. Densified Total Mixed ration Feed blocks

Feed is the major input cost in animal agriculture, accounting for 65–70% of the totalrearing cost. In most tropical regions, the majority of bovine feeds available are of poor

qualitycrop residues and agro-industrial by-products. Grains have the priority for human consumption.In addition, the grains are also being diverted for biofuel production. The protein rich oil seedmeals, e.g. soybean meal, groundnut meal and cotton seed meal are in short supply.

One solution suggested is to popularize the technology of densified total mixed rationblocks (DTMRB). This involves usage of the agriculture residues like straw modified byammonization and mixing with other nutrients, to be supplied as densified blocks.

The crop residue management should include the use of specially designed balers forcollection of straw from the field, followed by the use of processing technologies for themanufacture of balanced complete feed for ruminants. In this respect, the technology for makingDTMRBs is an innovative approach, which provides an opportunity for the feedmanufacturers and entrepreneurs, to remove regional disparities in feed availabilityand to supply the balanced feed to dairy and other livestock farmers on a large scale. TheDTMRBs Technology can also be effective in disaster management at times like droughts.

The first step in the process of making DTMRBs is the grinding and mixing of concentrate ingredients separately. This is followed by adding concentrate components to chopped straw in desired proportions along with molasses in a mixer, taking care that mixing is uniform and ingredients are not separated due to gravity. Finally, the desired quantity of straw-concentrate mix is transferred to a hydraulic press to convert the mix into a block. Recently, a modified version of the technology has been developed, and the densified total mixed ration is delivered as pellets (DTMRPs).

Roughage part is generally the crop residues like wheat and paddy straw, sorghum stalk, sugarcane tops. Sometimes mustard straw, gram straw, sugar cane bagasse and groundnut hulls too have been used as part of the roughage component. In hilly areas, even the non-

conventional roughage sources like dried forest grasses and tree leaves have been used in place of crop residues. The second major component of the densified feed block is the concentrate part. The proportion of the straw and concentrate in the block varies with the type of animal to be fed. The ingredients of the concentrate mixture are oil cake meal (as protein source), molasses, grains, grain products/ by-products (as energy sources) and supplements like bypass protein / bypass fat, to enhance the direct supply of amino acids and fatty acids to the host animal as concentrated protein and energy sources. The third component provides strategic and catalytic supplements, the additives like micronutrients, vitamins, minerals, bentonite (toxin-binder), probiotics, antioxidants, herbal extracts etc. The role of these components in the feed block is to enhance the productive and reproductive efficiency of the animal with regard to feed utilization and enhance the immuno- protective ability to keep the animal as much as possible free from infections. The value addition of the feed blocks can be a continuous research process under R& D.

See: https://www.youtube.com/watch?v=G5_YiP6gCnE

Recommended roughage to concentrate ratio is 60:40

The roughage can be paddy straw, corn stover or dry hay. If paddy straw is used it is recommended to ammoniate the straw by adding urea and maturing in a closed space to increase the digestibility. Molasses are to be added to the roughage to make it more palatable.

The concentrate can be cereals, oil cakes, bran. Mineral mixture in recommended dosage is to be added to the concentrate.

Cost of production is estimated at Rs. 12 to 14 per kg

The blocks can be made in cubes of 1.5 to 2 kg. Machinery required

Mixing machine, Hydraulic press

Power: 10 HP

Cost of machinery: 7.5 lakhs

Telangana state has many pockets where paddy is grown. Corn stover and sorghum stover is also available in substantial quantities. Of these paddy straw and corn stover are going as waste. The ideal proposition is to develop few small clusters, where the raw material is available in adequate quantities.

Units Number of Production Investment in Revenue per Profit margin units capacity per each unit each unit % unit Rs. lakhs Rs. lakhs per per day year DTMRB 5 10 tons 10 300 5 Common facilities Bailer and 2 50 tons 25 raw material stock yard Mineral 1 2 tons per 5 60 10 mixing unit day

It is not necessary that all the units be at one location. Recognition as a cluster will be advantageous in planning for supply of materials like molasses and de-oiled bran. The mineral mixing units can also produce micro nutrients for crops

03. Exotic vegetable cultivation in polyhouses

(Source: ICAR)

Changing food habits, affluence and exposure to different cuisines has resulted in market for food products that are not part of traditional Indian food. This in turn has expanded the scope of different vegetables and meat. One recent development is, the growing market for exotic vegetables.

Different exotic vegetables that have become popular now include Parsley, Red cabbage, Broccoli, Leek, Cherry tomato, Lettuce, red and yellow capsicum, Jalpenochilli, Zucchini, Asparagus, baby corn.

Demand-driven exotic vegetables production is suitable for progressive farmers as they have assured market through contract with consumers. Exotic vegetables market is growing at the rate of 15 to 20% per annum. India is importing more than 85% exotic vegetables. Presently, a group of 100 farmers in Pune suburbs are cultivating these exotic vegetables.

These vegetables have to be cultivated under controlled conditions in poly houses. Initial investment needed will be high and input costs are also 30 to 40% higher than traditional vegetables. This is offset by the higher prices of the exotic vegetables. It is reported that under good management net profit of Rs 1000 per day per acre of poly house is assured.

For a 500 Sq M poly house the initial investment would be about Rs 5 lakhs. Cost of cultivation of colored capsicum would be:

Cost component Cost per 500 Sq. M Capsicum cultivation Labor 6000 Seed 2400 Fertilizers and nutrients 4000 Plant protection 4500 Irrigation and power and 4000 other expenses Total 20900

Yield will be 5 Tons valued at 2 lakhs (for a 8 month period). While the cultivation costs are a smallpart of the revenue, major cost will be on servicing the capital cost incurred on the green house.

Market for exotic vegetables is limited to metro cities and there also to affluent areas and to star hotels. So market reach is difficult for individual farmer.

One model that is being followed by a company is contract farming. The system works like this: Crop wise regions are pre-decided, so are the distributors. The distributor acts as a company representative. He is the link between farmers and company.

Considering the factors mentioned above we suggest a cluster of 50 poly houses, varying in sizes of half acre to one acre in one mandal area close to Hyderabad city. The poly houses should be built utilizing the subsidy being provided by the Government. Exotic vegetable production can be taken up in these poly houses for supply to Hyderabad market. Horticulture department may support this effort with an exclusive scheme for the identified Mandal.

04. Floral Tourism, flowers, potpourri and fragrances

Flower gardens attract everybody. This attraction can be turned into a business venture, providing employment, value addition and wealth creation.

Proposal

A fifty acre flower garden complex at a place close to existing tourist destination like a dam site, a lake, a temple near a river can be a commercially viable business. The main products

can be flowers that suit the local conditions and have market as fresh flowers, some flower plants in green houses and some exotic flowers in controlled atmosphere sheds can make interesting combination.

This is well suited for Telangana

The complex can generate revenue from four streams

From tourists

From sale of fresh flowers

Drying flowers and potpourri making for sale

Production and sale of flower and aromatic herb based essential oils and perfumes

Potpourri (pronounced poupuri) is a mixture of dried, naturally fragrant plant material, used to provide a gentle natural scent and decorative piece inside buildings (bath rooms, living rooms and office rooms}

The fragrance is achieved by mixing spices and scented fixatives to the dried petals and herbs. These are then kept in special pots with perforated lids or in muslin fabric bags to scent up a house.

Potpourri making can provide employment and good income. Drying of flowers, extraction of essential oils, producing the container can be done at one place. One of the National research laboratories is offering technology for flower drying using silica gel. This results in dry flowers with good color.

Perfume production and sale is a high margin business. This sector is growing at 40 to 50 % per year. Concentrates can be bought and diluted and bottled for retail sale. This itself will be profitable. If essential oils produced in the gardens are used in the concentrates, the margins will be much higher.

Ten entrepreneurs can pool and start the 50 acre garden complex (5 acres each as independent units).

A. Project Cost Rs. Cost of flower gardens 50,000,000 Cost of construction green houses 30,000,000 Cost of equipment 10,000,000 Capital cost 90,000,000 Working capital 20,000,000 TOTAL 110,000,000

TEMPO is recommending this project because of the market potential. This should appeal to entrepreneurs looking for green options of wealth creation. This is however suitable for entrepreneurs who have already made their money

Tempo suggests that GOT may get a study made on suitability of some locations for this type ventures and provide support to entrepreneurs. Two or three projects of this nature in proximity with simple variations can promote tourism and economic activity. Cluster of small processing units for making dried flowers. Pot pourri and essential oils can be set up by entrepreneurs as ancillary activity.

05. Fortified Vermicompost

Vermi-compost (compost produced by the activity of selected species of earthworms) has been adjudged as the best source of organic amendments to soil. Using vermicompost can fulfill the requirements for organically grown products.

There are many advantages of vermicompost:

• It provides efficient conversion of organic wastes/crop/animal residues. • It is a stable and enriched soil conditioner. • It helps in reducing population of pathogenic microbes. • It helps in reducing the toxicity of heavy metals. • It is economically viable and environmentally safe nutrient supplement for organic food production. • It is an easily adoptable low cost technology.

Process Following steps are involved in vermicompost preparation • Vermicomposting unit should be in a cool, moist and shady site • Cow dung and chopped dried leafy materials are mixed in the proportion of 3: 1 and are kept for partial decomposition for 15 – 20 days. • A layer of 15-20cm of chopped dried leaves/grasses should be kept as bedding material at the bottom of the bed. • Beds of partially decomposed material of size 6x2x2 feet should be made. • Each bed should contain 1.5-2.0q of raw material and the number of beds can be increased as per raw material availability and requirement. • Red earthworm (1500-2000) should be released on the upper layer of bed. • Water should be sprinkled with can immediately after the release of worms (fig.5) • Beds should be kept moist by sprinkling of water (daily) and by covering with gunny bags/polythene. • Bed should be turned once after 30 days for maintaining aeration and for proper decomposition. • Compost gets ready in 45-50 days. • The finished product is 3/4th of the raw materials used.

Harvesting When raw material is completely decomposed it appears black and granular. Watering should be stopped as compost gets ready. The compost shout be kept over a heap of partially decomposed cow dung so that earthworms could migrate to cow dung from compost. After two days compost can be separated and sieved for use.

Fortification TEMPO suggests that instead of just selling vermi-compost entrepreneurs should provide tailor made nutrient solutions to farmers. This involves testing the soil of the farm, finding nutrition deficiencies based on the crop the farmer is planning and providing the compost with added nutrients. This way the entrepreneur can build rapport and provide genuine service. Normal composition of vermi-compost is

Parameters Content pH 6.8 Organic Carbon% 11.88 Organic Matter% 20.46

C/N ratio 11.64 Total Nitrogen (%) 1.02 Available N (%) 0.50 Available P (%) 0.30 Available K (%) 0.24 Ca (%) 0.17 Mg (%) 0.06

If the crop needs substantial Ca and Mg we can add dolime powder, if Ca and Sulfur are needed Gypsum can be added. Rock phosphate with phosphate solubilizing bacteria can be added to increase P.Humic acid and other soil conditioners can be added as per the soil needs

Capacity: 1000 MT per yearValue of output: Rs. 40 lakhs per year

Project cost: Rs 27 lakhs

Land One acre 5.00 Shed 5000 sft 10.00 Equipment shovel for mixing, Sieving Machine, Cutter & Blender, 5.00 Sewing Machine, Breeder Box for earth worms Miscellaneous Water tank, pump etc. 2.00 Working Capital 5.00

Profitability: Profit from the project mainly depends on the cost of raw material. It is necessary that organic wastes like dry leaves, plant stalks etc. should be available at low price (Less than Rs. 1000 per ton). In such case the unit will give 25% profits.

If raw material is not available at one place, the project can be shared by three or four entrepreneurs with individual units at different locations. A cluster of five six units can be promoted in few mandals where dairy units are existing in good numbers. Common facilities for testing the compost can be created close to the cluster.

06.Mushroom Production cluster

I. ECONOMIC SIGNIFICANCE OF THE PROJECT: Mushroom is not a traditional culinary item in India. Acceptance as a substitute/ complement to vegetables is slow in the country. These are the reasons why India has insignificant share in global mushroom production and consumption, estimated at 20 to 25 million tons (2013). This is changing and domestic market is developing now.

Dr. Amrik Singh Sidhu, former director, Indian Institute of Horticultural Research, Bangalore, is of theopinion that India could produce 7.2 million tons of mushrooms while providing employment to 30 lakh people. Government and institutions have been trying to encourage mushroom cultivation for the following reasons 1. Availability of large amount of agriculture residues suitable as substrate for mushroom cultivation 2. Labor intensive nature of the cultivation (20% of cost of production) and harvesting that provides large scale employment and makes us cost competitive in production for export. 3. Higher protein content compared to other vegetables, which is a dire need in our country. Very large domestic market can develop 4. High value addition and adaptable for micro level cultivation with low capital investment. 5. Export possibilities if cost effective production technology is developed. The state of Telangana is well suited for taking up mushroom cultivation. Production of about one lakh tons of mushrooms valued at Rs. 1000 crores providing employment to about twenty thousand persons is possible. II. PROPOSAL So far mushroom production is either at corporate level (mainly for export) or at micro enterprise scale. Micro enterprises are not successful because they cannot afford the marketing effort and logistics involved in the supply/ distribution chain. TEMPO is proposing a cluster of small production units supported by common infrastructure to solve the logistic problems and scale up production. The cluster is to be developed in ten acres. This will be a demonstration cum training facility used for: 1. Demonstrate the economic viability of mushroom cultivation in Telangana at a level adequate to provide sustainable income for one family or a SHG.

2. Bring in higher level of technology by way of standardized seed supply, control of growing conditions so that yields go up by at least 50 % over those being obtained in existing micro level enterprises. Renewable energy sources will be used for generating utilities.

3. Train young men/ women/ Self-help groups over the entire cycle, so that they can set up their own units after the training. Sixty percent of the area will be for units set up by SHG

4. To develop local market, mainly in second tier urban centers and popularize protein rich mushroom eating.

III. MARKET For the proposed project Hyderabad will be the Target market. As per our survey a market of about two tons per day has developed in Hyderabad. This is mainly for button mushroom. For the last five six years button mushroom has started appearing on super market shelves. Our survey (opinions from informed consumers) indicates that other varieties of mush room will also find market if the products are presented well and priced economically. As per our survey market for five tons per day can be developed. (Chennai and Bengaluru have already reached this)

Existing markets like Rythu bazaars, municipal markets will be used as outlets. Sound supply chain will be put in place to service the retail outlets. Part of the produce will be processed into dried powders. There is good scope for export. IV. PRODUCT MIX It is proposed to set up the unit with the following product mix. This will help in training the aspirants on different production methods. Product Production per year Tons Oyster mushroom 150 Paddy straw mushroom 60 Milky mushroom 150

Production can be increased to 600 tons when all the units by SHG are set up. Additions in close proximity can increase the production up to 1000 tons per year.

V. TECHNOLOGY: Mushroom cultivation and processing involves following stages 1. Substrate preparation (making agriculture waste like paddy straw suitable for growth of mushroom by composting or other methods) 2. Inoculation of spawn on the substrate and spawn running (ensuring spawn spread throughout the substrate). 3.Cropping (involving creation of suitable conditions for sprouting and growth of mushroom) 4. Harvesting the mushroom (mushroom grow in three to four flushes) 5. Preservation by refrigeration for fresh market or freezing/ drying.

Technical support for growing mushrooms of different varieties is being obtained from Indian Institute of Horticulture Research (IIHR) Bengaluru. VI. PROJECT DETAILS The cluster will be developed in ten acre area. Main constructions proposed are S.NO Facility Area in SQ. M 1. Yard for storing paddy straw and compost preparation 2500 2 Utilities sheds, for Solar thermal concentrators, solar PV unit, 2500 gasifier, generator and boiler 3 Sterilizers, tunnels 100 4 Laboratory and spawn multiplication unit 300 4 Spawn running rooms 10 No’s, Poly houses/ sheds 500 5 Grow rooms 20 Nos. Poly houses and/ 10 shade net houses 3000 6 Processing and Packing area 200 7 Grow rooms for SHG groups 3500 Main machinery proposed consists of NO Machine Capacity Quantity 1 Tractor with straw bailer 1 2 Chaff cutter 1 3 Baby Boiler 200 Kg per hour 1 4 Solar water heaters/ steam generators 10 M2/ 16M2 4/5 5 Solar PV system with power conditioning unit 15 KW 1 6 Adsorption chiller 10TR 2 7 Gasifier with generator 30 KVA 1 8 Autoclaves and pasteurization tunnel 2 9 Dryers and refrigerators 4 10 Pumps, tanks Utilities required will be water, steam and power. PV and biomass gasifier based power generation is proposed to take care of power needs. Grid power will be used only in emergencies VII. PROJECT COST AND MEANS OF FINANCE

S.no Description Cost Rs. in lakhs 1 Land and Site Development 18.00 2 Buildings & Civil Works 73.00 3 Plant & Machinery 97.00 4 Misc. Fixed Assets , deposits, pre-operative 42.00

expenses, working capital margin and contingency provision TOTAL 230.00

The capital investment of 189.07 lakhs is proposed to be raised as given below

Description Total 1 Equity from Promoters 45.00 2 Grants/ subsidies from MOFPI/ horticulture 135.00 department/ NABARD/ MNRE 3 Term Loan from bank / SIDBI 50.00 4 Investment subsidy from state Govt. 20.00 Total 230.00 As major part of funding is proposed from grants, additional loan of 75 lakhs is proposed from bank, to be repaid as and when the grants are obtained

VIII. VIABILITY ASPECTS The cluster will produce mushrooms valued at Rs. 250 lakhs at 70 % capacity utilization. Main cost contributors are: Raw material- 23%, Wages- 18% and Marketing- 20%. Based on the proposed funding pattern (grants and soft loans) the project is highly viable. The risk factors are: market development as envisaged, effective use of solar energy for generating the utilities and optimizing production. Our analysis indicates that this cluster will be viable even on commercial lending terms once the optimum conditions and production skills are established.

07. Silage production Cluster

Silage is, fermented high moisture forage fed to ruminants, cud-chewing animals like cattle and sheep. Silage is mostly made from grass crops, maize or sorghum, but any green fodder can be converted to silage.

Forage plants are cut and chopped when they are green and succulent (normally in season of plenty) and packed tight in tower silos, pits or trenches (this process is known as ensiling). Additives that enhance the nutritive quality are added. Under anaerobic condition the green fodder ferments in few days. The silage can be stored under ensiled condition up to six months and used when green forage availability is low (winter months in North America and Europe)

Silage is relished by cattle because of the fermented taste and smell.

Considerable research has been carried out on production and usage of silage in the US, Europe and India. Voluminous documentation is available on the nutrition content and effect on milk yields etc. Two such documents are enclosed as annexure to this report. Further information can be collected from Agricultural University, maize research station and forage research Institutes.

TEMPO recommends entrepreneurs may consider marketing silage along with cattle feedconcentrate to gain following advantages 1. It is well established that up to 50 % of concentrated feed can be replaced with silage without any decrease in milk yields. Silage can be marketed at considerably lower cost. This helps the farmer. 2. Karimnagar is a potential source for promoting small silage production units. 50 to 60 units (varying in sizes from 500 to 1000 tons capacity) can be promoted providing employment, addition to rural incomes.

For the purpose of this project the term silage is defined as ensiled mix of:

1. Three parts of whole-plant corn silage (WPCS). Whole-plant corn refers to special hybrid corn grown for silage and harvested at the milking stage of grain on the cob. The entire plant including the cob is harvested and chopped and ensiled. 2. One part of paddy straw treated with urea or ammonia ensiled along with WPC. Corn and paddy straw are available in Karimnagar district and the mix will provide a low cost feed with high nutritive value.

Growing corn for making silage:

Corn varieties suitable for silage are available from seed developers. 25000 plants are sown per acre to get 20 to 25 ton of silage corn (whole plant with cobs at milking stage having 65% moisture content). It takes about 75 – 80 days for the corn to reach this stage.

The ensiling process

The ensiling operation includes the following steps: harvesting the crops at the optimal stage of maturity, wilting (if needed and possible) to ensure adequate dry matter content for the solid- state lactic acid fermentation, chopping, loading into a silo/ pit/ multi layered plastic bags, compaction and sealing to exclude air, storing and finally unloading for animal feeding. Additives like cane molasses and microorganism for faster fermentation can be applied at the chopping stage or when loading. It takes about a month for fermentation.

For Indian conditions we are assuming cost of production of Rs.15000 per acre and yield of 20 tons per acre. Thus the cost of production is Rs750 per ton of WPCS. If mixing of paddy straw at 25 % is taken into consideration the cost of production of silage will be still low.

We are assuming that the Silage can be sold at Rs. 3000 per ton after Packing (laminated poly bags) and transport costs are added.

Assuming that a production capacity of 30,000 tons per year is created (15000 tons in Kharif and 15000 tons in Rabi involving diversion of about 2000 acres of corn growing area), value of silage produced will be Rs. 9 crores.

Value addition will be Rs. 9 crores. This can be shared by the farmer and silage producer

08. Tissue culture cluster

Plant tissue culture is a collection of techniques used to maintain or grow plant cells, tissues or organs under sterile conditions on a nutrient culture medium of known composition. Plant tissue culture is widely used to produce clones of a plant in a method known as micro propagation. Different techniques in plant tissue culture may offer certain advantages over traditional methods of propagation.

Advantages of Tissue Culture

 True to the type of mother plant.  Pest and disease free seedlings.  Uniform growth, increases yield.  Early maturity of crop - maximum land use is possible in low land holding country like India.  Round the year planting possible as seedlings are made available throughout the year.  The production of multiples of plants in the absence of seeds or necessary pollinators to produce seeds.  The regeneration of whole plants from plant cells that have been genetically modified.

 The production of plants in sterile containers that allows them to be moved with greatly reduced chances of transmitting diseases, pests, and pathogens.  The production of plants from seeds that otherwise have very low chances of germinating and growing, i.e. orchids  To clean particular plants of viral and other infections and to quickly multiply these plants as 'cleaned stock'.  New varieties can be introduced and multiplied in a short duration.

The science of tissue culture

Plant tissue culture relies on the fact that many plant cells have the ability to regenerate a whole plant. Single cells, plant cells without cell walls, pieces of leaves, stems or roots can often be used to generate a new plant on culture media given the required nutrients and plant hormones.

Modern plant tissue culture is performed underascepticconditions under HEPA filtered air. Living plant materials from the environment are naturally contaminated on their surfaces (and sometimes interiors) with microbes, so surface sterilization of starting material in chemical solutions (usually alcohol) is required. Explants are then usually placed on the surface of a solid culture medium, but are sometimes placed directly into a liquid medium, particularly when cell suspension cultures are desired. The tissue obtained from a plant to be cultured is called an explant. The most commonly used tissue explants are the meristematic ends of the plants like the stem tip, auxiliary bud tip and root tip. Solid and liquid media are generally composed of salts plus a few organic nutrients, vitamins and plant hormones. Solid media are prepared from liquid media with the addition of a gelling agent, usually purified agar.

There are three ways of developing whole plant from an explant. The method to be chosen depends on the plant.

• Plant tissue culture is a labor intensive process and provides large scale employment for youth trained in the techniques

• A cluster of modular labs sharing infrastructure can simultaneously produce micro propagated plants. These can then be grown to ready to plant scale in nurseries in controlled conditions

Some plants best suited and economical for micro propagation

Banana, Mushroom, commercial production of plants used as potting, landscape, and florist subjects,Forestry, Medicinal plants.

Cluster composition:

Unit Capacity Investment per unit Rs. Lacs

1 Labs 10 million per 25.00 One building with ten sections section

2 Nurseries with green houses 1 acre 20.00 5 Nos 3 Traditional nurseries 10 Nos 5 million 10.00

09. Vertical farming

The term vertical farming has become a buzz word in recent times. This is mainly popular in urban areas of developed countries where roof top vegetable gardens and hydroponic systems are being installed. Vertical farming (vegetable growth in three or four vertical tiers) is also being tested in places like Singapore where land availability is very limited.

In Telangana this type of farming can be tested in areas close to Godavari River where the land is not suitable for traditional farming. Instead of growing crops or vegetables we can try intensive fish farming, growing algae for fuel and feed and growing azolla for feed.

The concept is to go for intensive farming in three or four vertical tiers making utmost use of sunlight and water that is available in adequate quantities. For example steel structure can be erected to install suitably designed plastic tanks in four levels and fish farming can be taken up.

The economic and technical viability of such system is yet to be proven. Entrepreneurs with some risk appetite can consider this. Financial support under start up India scheme and other sources in form of risk capital can be sourced. This needs further investigation.

If the economic viability is proven a large cluster of such units can come up along the Godavari belt.

10. Builders` hardware cluster

Housing for all is a priority in our country. Central government is providing liberal assistance for house construction for the economically weak sections of the society. This push will continue for years to come. Apart from social significance construction of affordable housing on massive scale will be an economic activity, creating new employment opportunities and market for building materials. One activity that can be taken up to support house construction is manufacture of hardware used in house construction.

Materials: Aluminium alloy (anodized) Electroplated steel, gun metal, stainless steel and brass

Products

Aldrops

Tower bolts and Cocking bolts

Door handles and knobs

Door stoppers and Door closers

Hinges

Curtain rods and fittings

Locks

Channels

Fasteners

Processing:

Metal / alloy ingot preparation. Extrusion into desired shape and size, Finishing, electroplating, anodizing

The production process of hinges involves cutting, drilling and forming of sheet metal on the variousmachines operated manually and electrically to get the final shape of the hinge.

 Cutting work: - Cutting of the mild steel and the brass sheet metals into size on shearing machine

 Press work: - Blanking, bending and folding of the sheet metal on press using appropriate dies to obtain the hinges and washers

Tumbling work: - Cleaning of rust and removal of sharp edges from the products.

One cluster for manufacture of builders` hardware can be promoted near any district headquarters in Telangana. This should possibly in proximity to few other engineering industries.

One are two units making aluminium extrusions from aluminium scrap with investment of Rs 150 lakhs each can meet the extrusion requirement for aluminium hardware producers. Smaller units can take up finishing and anodizing work.

Similar set up can be planned for steel and brass products. Sheet metal fabrication units and presses will also be needed.

The units in the cluster can take up manufacture of related products like fasteners.

11. Ceramic products cluster

Availability of suitable clays and cheap energy are the main requirement for success of ceramicproduct manufacture. There is good scope for sanitary ware and ceramics manufacturing cluster in Telangana. Good deposits of clay are available in Asifabad area of Adilabad district. Coal is available from nearby coal mines. These resources can be put to use for developing a ceramic and refractory products cluster.

Flooring tiles, wall tiles, sanitary ware can be manufactured economically in this area if the units are planned well with energy efficient equipment and low cost energy sources. Contribution of energy costs in ceramic industry is estimated at 9% in large size energy efficient units. Any wastage adversely affects the profitability. In small units in our country the energy cost in ceramics units is sometimes as high as 40 % of cost production

Initiative from Government side

1. Provide complete details on availability of clays

2. Clear policy on mineral uses and incentives for new units.

3. Ways and means of supply of energy at low cost. Setting up a battery of producer gas units at the location by Singareni collieries can be considered.

Entrepreneurs from their side should plan for competitive and viable size units incorporating automation and energy efficient equipment. Using solar energy in the drying process should be considered.

Small units in India operate at capacity of about 1500 Tons per year. The investment in assets is about Rs 150 lakhs per unit. Cost of production is about Rs 15000 per ton.

A cluster of 20 units at one location manufacturing different end products will be ideal. This will bring in good revenue to exchequer.

12. Door and window frames and shutters

Solid wood frames are best suited for areas with temperate climates. However due to non- availability of right quality solid wood and cost factors, many alternatives are in use now.

Frames Wood varieties: Teak, Deodar, Sal and shisham are the common wood types used for door and window frames. Due to shortage of these woods many substitutes like mango, neem are also being used. Treatment methods for making these frames as good as Teak have been developed.

RCC: For low cost housing, precast RCC frames are also one option

Fiberglass has steadily grown in popularity over the years as a low-maintenance alternative to traditional wood frames. Well-designed fiberglass windows and doors enhance curb appeal through its aesthetic flexibility to match the house’s architectural style.

Vinyl (PVC) frames are especially energy efficient due to its ability to trap air. In addition to their insulating properties, vinyl frames are UV resistant, require little maintenance and are generally more affordable compared to its wood and fiberglass counterparts.

Wood plastic composites are another option

Aluminum --- a recognized and established frame material that architects and builders have specified for years. Aluminum frames are easy to maintain and are sometimes less expensive than other frame options.

Shutters

Flush doors: Medium density fiber board, particle board and plywood are used in making flush doors. These are the most common shuttering material for doors.

Sandwich panels: There is wide choice for making sandwich panels. Foam core with plywood facing and back is one example. The core and facing material can be of different combinations.

Plastic shutters: PVC door shutters made of PVC profiles are already in market. Proposal:

Small and medium scale enterprises can be set up to manufacture window and door frames and shutters. For medium scale enterprise having investment of about Rs. 5 crores, manufacturing flush doors and frames using different materials can be considered. For small units Investment of 25 to 150 lakhs can be considered.

The starting point is market survey in the area where the enterprise is planned. The second step is detailed study of various alternatives available. Many companies are offering these products under knocked down condition. Becoming agent for some of the companies / stocking their products can give initial entry in to the market. Minimal processing can be

considered during this stage with concentration on trading and installation. Next stage will be assemble or produce, frames / shutters using the most economical material.

A cluster of small units manufacturing components of door and window frames using different materials can be planned at one or two locations. Location adjacent to other clusters making furniture, cabinets etc will be ideal.

13. Fly ash based building materials cluster

Fly ash is “the finely divided residue resulting from the combustion of ground or powdered coal.

Fly ash is a by-product of coal-fired power plants.

Anthracite and bituminous coals produce fly ash classified as Class F. Class C fly ash is produced by lignite or subbituminous coal. Class C fly ash is preferable for the applications in building materials.

India produces fly ash amounting to 60 million tons annually. Disposal of fly ash is a problem. Central and State Governments and R&D organizations have been constantly searching for methods for best utilization of fly ash. Various uses for ash utilization have been developed over the last fifty years. The main uses are in the manufacture of Cement, Asbestos – Cement products & Concrete manufacturing industries, Land fill, Road embankment construction, Building Products such as Bricks/ blocks/tiles and panels, Reclamation of coal mine and as a soil amender and source of micro and macro-nutrients in agriculture.

MoEF Notification on Fly Ash Ministry of Environment & Forests (MoEF), Govt. of India vide its notification (amendment) dated 3rd Nov 2009 has made it mandatory:

 Within 100Km radius of a Thermal Power Plant 1. To use Fly Ash based Building products such as cement or concrete, fly ash bricks, blocks, tiles etc. in all construction projects 2. To use Fly Ash in Road or Flyover Embankment construction 3. To use Fly Ash in Reclamation of low lying areas  Within 50Km of a Thermal Power Plant (By Road) 1. To use Fly Ash in back filling of underground and open cast mines

Products from fly ash

FAL – G Bricks (Fly ash lime gypsum bricks)

This is a value added end use for fly ash. Fal-G bricks and blocks are manufactured without using thermal energy, in contrast to the sintering involved in the production of clay bricks. Number of units are set up and running profitably in the country.

Light weight FAL – G bricks

These are made by aeration/ foaming of mix of fly ash slurry, cement, lime, sand and gypsum. Molds are used to make aerated blocks which are cut into bricks and cured. This results in a light weight brick. These are economical in high rise buildings.

Number of units have come in the country during the last five years. Most of them are based on imported Chinese machinery. High pressure steam is used for curing the bricks. The capital investment is high (15 to 20 crores for a 300 M3 per day plant). Technology for smaller capacity water cured manufacture at lower investment is available in the country. Relative economics have to be assessed based on market size.

Pre-fabricated blocks and Panels

Light weight blocks/ panels are manufactured in the same way as light weight bricks. Three four units were set up with imported machinery in 1990s. They did not succeed as the market was not ready. The situation has changed now. Smaller capacity plants with semi- automatic machinery can be set now

Cenospheres/ Polymer matrix composites

Cenospheres are unique free flowing powders composed of hard shelled, hollow, minute spheres. A small proportion (about 1 %) of the pulverized fuel ash (PFA) produced from the combustion of coal in power stations is formed as Cenospheres. Cenospheres find use in manufacture of Ceramics, Refractories, Plastics, BMC, SMC, Injection Molding, Filler for particle boards, Specialty Cements, Mortars, Acoustical Panels, Coatings, Automotive Composites, Trim Molding, Body Fillers, Sound Proofing Materials.

Technology for extracting high grade cenospheres from fly ash is not available. Separation for end uses like fillers can be obtained. A unit can be started for low end uses with small investment and technology upgraded later.

Concrete products (dry mortars/ light weight concrete mixes)

Fly ash can be converted into aggregates and sand substitution products. The aggregate along with light fraction of fly ash can be added to cement to produce dry mortars. These mortars can be used in concrete products like counter tops, under layer for flooring, Interlocking pavers, kerb stones, ceiling and flooring tiles and cultured stone veneers for facing. Fly ash aggregates can be used as abrasives in application like sand blasting.

Fly ash soil conditioner for agriculture

Fly ash contains many minerals like iron, calcium, magnesium, manganese. It is proven that adding Fly ash in appropriate quantities will help soil conditioning and improve crop yields. Fly ash can be further fortified with minerals to suit specific deficiencies in a particular area. Phospho gypsum can be added to fly ash and sold as a source of calcium and other micro nutrients.

How clustering will help

We are recommending that fly ash based building product manufacture may be taken up as a cluster of 10 small/ medium enterprises.Units in the cluster can share the infrastructure for transport and handling of fly ash. They can share product and process technologies.They can share the product transportation/logistic and marketing costs to some extent.

Marketing

The target groups for marketing are architects and builders. They are well informed and product awareness is very high. The deciding factor will be economics.

Location having two three major towns (district headquarters/ a large city within 100 – 150 km range will suit the cluster

Size of the cluster

A 10 unit cluster with a capacity to handle 2000 tons per day fly ash should be viable proposition

One unit producing cenospheres/ light fraction of fly ash to be used as filler in composites/ boards and as filler in paints and plastics.

Four units manufacturing FAL – G bricks, light weight bricks and panels

Two units producing dry mortars for different applications

One unit producing calcined gypsum

One unit producing hollow gypsum boards with fly ash filling

One unit producing tiles/ cultured stones

One unit producing soil conditioner from fly ash with added micro nutrients

Investment

Land - 20 acres 60. 00 lakhs

Buildings 10 sheds – 200 M2 each 100.00 lakhs

Machinery 600.00 lakhs

Working capital funds per unit will be 140 lakhs.

Total capital outlay per unit 90 lakhs.

Own funds – 30 Lakhs, Loan – 60.00 lakhs

One large unit promoted by company experienced in this line can be supported with special incentives if they take up marketing for the entire cluster.

14. Gypsum fiber board

Phospho Gypsum is gypsum (CaSO4. 2H2O) obtained as byproduct in the phosphoric acid industry. Phosphoric acid is the raw material for production of phosphatic fertilizers like Di-ammonium phosphate. Huge quantities of phosphor gypsum are produced in the fertilizer plants like Paradeep fertilizers (Odisha), Coramandal Fertilizers (Vizag), FACT (Kerala) and RCF (Mumbai). Disposal of the byproduct is a big problem for these companies. They maintain huge stock piles at additional cost. Phospho gypsum can be directly used in the cement industry and as soil conditioner, but this is low value end use and transport cost dictates the marketability.

More value added products like gypsum boards can be made from phospho gypsum. For this the material has to be first refined to remove the traces of phosphoric acid. Beneficiation is done by solubilization of impurities and rejection of coarse fraction retained over 300 micron sieve during wet sieving operation followed by centrifuging and drying of the products as per IS: 12679-1989. This Technology is available from research institutions in India for small scale operation. Once refined the material can be calcined and used like natural gypsum’

On heating gypsum loses water and gives the hemihydrate (CaSO4. 1/2H2O) or the anhydrite. The hemihydrate known as Calcined gypsum/ Plaster of Paris / stucco is an important building material. Main uses of plaster of Paris are:

Plaster boards - a layer of plaster sandwiched between two sheets of cardboard.

Fibrous plaster - plaster with fibers (often made of glass fibers but natural fibers are also used) mixed into it to increase its strength. Fibrous plaster is usually cast into a mould then used in slabs. Ceiling boards for false ceiling and partition boards) Plaster cornices - the decorative plaster projections used under the eaves and above doorways and windows in buildings, making statues, film settings

Plaster mouldings – ceramic industry and engineering industry Calcined gypsum is also used for manufacturing building plasters

Market: Market for Calcined gypsum is growing rapidly. New houses in cities are now invariably built with false ceilings, and interiors are plastered with gypsum based plasters. About one ton of calcined gypsum goes into building a1000 sft house with false ceiling. This is the main market at present. Small teams produce fiber reinforced plaster boards for use in this segment.

Technology: Technology for production of calcined gypsum and gypsum fiber boards is available from National Research institutions like CBRI.

Proposal

TEMPO suggests that entrepreneurs can consider beneficiation of phospho gypsum and calcination as a project. Calcined gypsum can be further processed to manufacture gypsum fiber boards. Paddy straw can be used as a fiber source along with fiber glass Project cost may come to 120 to 150 lakhs for the gypsum calcination project. Fiber board units can be set up with investment of 20 to 25 lakhs, for 2 tons per day capacity.

The unit can be located en route connecting the fertilizer plant and the main market (One large city).Water and fuel are two key materials. A bio mass gasifier for fuel supply would be economical. Availability of biomass can be explored.

Economics: Typical composition of gypsum fiber board is given below. The cost of production of this board (0.6 inch thick with density of17.5 lb. per cft) works out to Rs. 5 per sft. The thickness and fiber content may change based on the strength and other characteristics. Contractors charge anything from Rs. 35 to Rs 40 per sft

Dry board weight 100 lbs.

Calcined gypsum 85.00

Filler 5.00 starch 2.00 Paper pulp (dry basis)/ ground paddy straw 7.50 Dispersant, Accelerator, Retarder, foaming agent 0.50 and other additives Water to solids ratio for preparing the slurry 2.7:1 Density of dry board 17.50 lbs./ cft 100 lb. will give about 110 sft board of 0.6 inch thickness A cluster of small units making gypsum boards can be planned in Khammam, Nalgonda or Warangal district. Two three units of calcined gypsum based on phospo gypsum may be set up to supply the plaster. Natural fiber extraction units based on paddy straw and recycled jute bags etc can also form part of the cluster.

Gypsum plaster for walls can also be made by some units.

15. Natural fiber based composites

A composite is a material produced by mixing two or more materials to improve the properties and performance of the products made from the final material. This term is mainly used to describe engineering materials produced by combining a polymer/ resin with a reinforcing agent like glass fiber.

Natural fibers are emerging as low cost, lightweight and environmental friendly alternatives to glass fibers in composites.

Cellulose based natural fibers are derived from sources like

Wood: Soft wood, hard wood

Stem: Jute, kenaf, hemp, cotton

Leaf: Sisal, palm, banana, pine apple

Fruit: Cotton, coconut

Grass: bamboo, paddy straw, wheat straw

Manufacture of composites with natural fiber has four distinct stages

1. Natural fiber production 2. Mixing the polymer and fiber to form pellets/ molding dough

3. Adding fillers (red mud, fly ash) 4. Conversion of the mix into end products The second operation is the knowledge intensive part

Some products

Fiber reinforced Gypsum plaster boards for false ceiling and partitions

Pallets with wood fiber and thermoplastic resins Bumpers, grills and interior parts of automobiles Toys Hosing of domestic appliances like refrigerators, washing machines Helmets Furniture/ Hand rails for stair cases Housings for electronic gadgets Panels and structure of temporary shelters Door and window shutters/ flooring Proposal

An established and financially sound company can consider developing a mix of natural fibers as substitute for glass fiber in FRP products and various other applications.

Product development and application support to end users can bring in high returns

For a startup, adapting a proven technology having potential for diversification into related areas is appropriate. Manufacture of composites for door/ window/cupboard shutters is a promising area.In either case procurement of fiber from small vendors will be more economical.

Clusters for fiber production:

Small scale units for production of fiber from sisal, banana, and palm have already been set up at various locations in the country. However organized market for these products has not developed. If the supply increases the market will develop. One way is to encourage clusters of small units where two or three raw material sources are available.

Materials not exploited so far are straw from paddy, wheat, bajra etc. Thermomechanical treatment of these materials will produce fiber better suited for composite applications. Few such units can be set up at various locations in the country. (This should however be done after market study/ tie up with users).

Investment in the units ranges from Rs. 2 lakhs to 20 lakhs.

Technology for fiber separation from the plant sources is available from research institutions. Special plant and machinery have been developed for some of the materials like banana fiber.

Some of the research institutes working in this area are:

Institute of wood science and technology Bengaluru, IPIRTI Bengaluru, Central coir research institute, Composite design center Bengaluru.

There are number of research institutes in different countries

TEMPO is recommending this project so that some of the unexploited sources can be put to use. There is possibility of export of natural fiber.

Growing sisal and other natural fiber plants as fencing may be taken up in one or two mandals suitable for this activity. A cluster of small units can be planned in such locations.

16. Prefabricated building elements

Housing for all and affordable housing are going to be one of the main economy drivers in our country. Central and state Governments are allocating substantial resources for these schemes.

One way of accelerating the construction work at economical cost is to use prefabricated building elements for the affordable housing segment. A prefabricated building, informally a prefab, is a building for which individual components are fabricated at a factory and assembled at site to form the complete building Precast multi-story buildings are common in western countries and places like Hong Kong and Singapore. The construction involves, laying the foundations.at site and then building up the structure using precast columns and beams. The interconnection is done at site. Aluminium/ steel framework along with prefab slabs are used for flooring/ roof. Frefab wall elements are used for the external walls. The advantages 1. Standard materials and methods are used under controlled conditions for manufacture of individual elements. This ensures quality. 2. Time is reduced by half 3. Cost reduction varying from 10 to 50 %

Few companies in India have developed expertise and acquired assets to produce prefabs. Building material technology promotion corporation (BMTPC) has got the technologies vetted by experts. We can promote one prefab cluster each per two or three districts. This should basically consist of a mother unit which will take up the contract for construction. Small prefabs units can work with the main contractor in building the pre fab elements on job work basis.

Workers can be trained in the prefab work and also construction using pre fab elements.

GOT should encourage successful contractors to plan these clusters.

Invest per cluster can be Rs 15 crores. 17. Tiles and mats from waste polymers.

Rubber mats are extremely versatile! These special floor mats are most common in commercial entryways, restaurants, and fitness facilities. Rubber floor mats are also popular in residential settings. They are skid-resistant and easy to clean. These are effective in containing dirt and debris before it gets tracked into a facility. Facilities that use rubber mats keep their entryways clean and safe. Rubber runner mats provide the same benefits.

The rubber mats are generally made from reclaimed rubber (from used tyres) Price range Rs 30 to Rs 50 per sft based on thickness and finish. Apart from mats tile like products can also be made using waste rubber

Uses

Gyms Outdoor play ground for children Entrance to shops and commercial establishments Interiors of automobiles Garages

Process

Selecting proper material - Mixing the ingredients – Melting - Adding fillers - Moulding (pressing) -

Curing - Trimming/ cutting

The same machinery can be used to make similar products from waste plastics. This technology is available from Central Building Research Institute Roorkee.

Investment will be about Rs. 10 lakhs. This unit can be set up in a small shed.

Marketing will be the main challenge.

A cluster of small units can be planned near an urban center.

Common infrastructure/ support systems

One mother unit with facilities for rubber and polymer recycling may be set up with investment of Rs 200 lakhs. They should take up marketing of the products while manufacturing is done by small units.

18. Terracotta decorative tiles

(Based on project profile of Central glass and ceramic research Institute)

Terracotta (fired clay) decorative tiles are used for facings, flooring, as murals in interior/ exterior decoration. The tiles are relatively inexpensive and can be used in providing aesthetic appeal to commercial buildings like hotels, shopping malls, stations.

These tiles have art value and designer tiles are made by getting orders from architects and interior designers.

Manufacturing process:

CGCRI has developed an improved process for manufacture of terracotta tiles. The process has following stages

1. The ingredients (clay, pigments) are subject to wet grinding in a ball mill

2. The slurry is filtered

3. The wet cake is air dried and granulated

4. The granules are pressed to make tiles of different shapes and designs. Hand pressing is used for designer tiles. Mechanical press can be used for mass production.

5. The tiles are fired in a kiln at 10500 C for about two hours

Tiles produced in this way have high strength, low water absorption and uniform color.

Machinery required

Ball mill, Filter, Granulator, Screw press, Kiln

Raw material

Plastic and semi plastic clay

Small pieces/ grains of terracotta, fired clay or bricks

Technology

Technology is developed by CGCRI and available for licensing

Suggested plant size

240 Tons per year

Investment

Rs. 40 lakhs

TEMPO recommends setting up the unit in an area where energy costs are low (use a biomass gasifier for generating the fuel for the kiln) and suitable clay is available. All urban areas are potential markets. Marketing can be tied up with existing tile distributors.

Some other ceramic products can also be made using the same machinery. CGCRI will provide guidance in this area.

A cluster for terracotta products will have the advantage of implementing latest technologies, new product introduction and market development.

19. Assembly of electrical and electronic products

An inverter is an electronic device that produces alternating current (AC) from direct current (DC). It allows consumer to run electrical equipment in case of power outing by converting DC from a battery to AC. Voltage stabilizers are devices to regularize and control the variation and fluctuations in supply voltage within a desired range. This device is used in voltage stabilizing in a twin manner, i.e. controls voltage supply and prevents the peak voltage to go beyond a fixed limit.

Application: Inverter can be used for providing emergency power supply by assembling systems attached to rechargeable batteries of different kinds. The voltage stabilizer finds the use in television, air conditioners, computers, refrigerators and other sophisticated home appliances. Market Potential: Continuous power supply at constant voltage is a problem in our country. The problem is more acute in rural areas. Use of alternators and voltage stabilizers is growing at double digit rate.

Services & Capacity (per annum): The capacity of the proposed assembling unit has been estimated as under:

Services Capacity in nos Avg. price Turnover Per unit (Rs.) (Rs.) Inverter 900 5000 4500000 Voltage stabilizer 2000 950 1900000

Infrastructure Requirement: Power requirement: 10 KW Water: general purpose

Raw Materials/consumables: Inverters- Commutating capacitors, transformers, filter chokes, filter capacitors, power dicdes, thyristors, HRC fuses, transistors, resistors, laminations, PCB chassis etc.

Voltage Stabilizer- To assemble voltage stabilizer the components required are PCB, transformer, voltmeter, metallic printed cabinet, switches, fuse, and fuse holder, socket & plug, screws & washers, rubber pad and 5 amp, flexible copper wire. Most of these components are to be brought from outside (Available in Hyderabad)

Process: Inverter- Various components are assembled on the printed circuit board as per the design. The assembly screwed down in the casing fabricated in the unit Voltage Stabilizer- Assembly operations are similar to Inverter. The final products are tested as per protocol.

PROJECT ECONOMICS Land: Own/lease Building/Civil Works a.) Working shed 400 sq.ft. @ Rs. 700/sq.ft. 2,80,000 b.) Front office cum store 200 sq. ft.@Rs 700/ sq.ft. 1,40,000 c.) Toilet/bathroom 60,000 Plant and Machinery 1,60,000 Miscellaneous Fixed Assets & Other equipments 1,50,000 Preliminary and pre-operative expenses 60,000 TTOTAL 8,50,000 Working Capital: Rs. 7,98,000

List of Machinery&Equipments:

S NO Machine Nos 1 Shearing Machine 4 2 Bending Machine 6 3 Drill Machine with drill bits 4 4 Testing equipment I) Oscilloscope 5 II) Digital Multimeter 6 III) RMS voltmeter 6 IV) Distortion analyzer 3 V) Transient Recorder 6 VI) R.F. Interference meter 4 VII) Frequency Counter Etc. 4 VIII) Analog Multimeter 6

Profitability: Based on the sales turn over and the production expenses, the profit would be Rs. 10.92 Lakhs per year. Some of the large companies are outsourcing the assembly

work. Getting job work for 50 % capacity can reduce the risk. The facilities can also be used for assembly of many other gadgets. It is suggested that a separate cluster for assembly of electric and electronic gadgets may be promoted close to Hyderabad. Youth with short term training in polytechnics and ITI can be provided employment in these units. If good infrastructure is created it would not be difficult to attract companies within India and even from abroad to set up shop here.

20. Electronic security systems

Electronic equipment that perform security operations like surveillance, access control, alarming or an intrusion control to a facility or an area have come into wide usage. Such systems and real time communication devices are going to be used more and more as our cities get transformed into smart cities

The electronic security systems are utilized within corporate work places, commercial places, shopping centers railway stations, public places. Simple systems are being produced for use in individual homes.

The electronic security systems extensively comprises of alarms, access controls and CCTVs (close-circuit televisions), which are prominently and broadly utilized. CCTVs have become the most sought after systems among these products.

Surveillance Security System

Surveillance electronic security system consists of camera or CCTV cameras as eyes of the system. Other components include equipment which helps in visualizing and saving of recorded surveillance data. The close-circuits IP cameras and CCTVS transfers image information to a remote access place.

Smoke / Fire Detection/Alarm System

These systems comprise of sensors that detect smoke, heat and raise an alarm. Different types of sensors are available for detection and sometimes directly connected to actuators that trigger water showers etc.

Access Control/Attendance System

System which provides a secured access to a facility or another system to enter or control it can be called as an access control system. It can also act as attendance providing system. Different types devices/ pass codes like pin credentials, biometrics or smart card are being developed for access control.

Technology and devices used in these systems also find application in many other areas like patient care, child care. Market for these products is going to increase in double digits.

T state can promote one exclusive cluster for these systems. This can be part of our ITIR.

21. Energy efficient pump manufacturing cluster

It is estimated that there are nearly 20 lakh pump sets in Telangana. Most of these are submersible pumps installed in bore wells of four inch and six inch diameter. These pump sets have motors of 5 hp to 15 hp.

A standard 5-horsepower electric motor pump-set, under ideal field conditions of three- phase supply at consistent 440V voltage should not consume more than 3.75 units (kilowatt- hours) of energy per hour. But most 5-HP pumps that farmers use today consume at least 5 units of electricity, going up to even 7-7.5 units. On average the wastage due to inefficient pump sets is estimated to be about 25%. This is colossal wastage of energy which is in short supply. Government has been nudging farmers to replace the old pump sets with more energy efficient pump sets. A scheme to give free pump sets to replace old ones is also in operation.

Agriculture power needs of Telangana are about 8000 million units. If we save 25% of this the savings at Rs 5 per unit would be Rs.1000 crore per year. It is imperative that the old pump sets be replaced with a mix of incentives.

Pump set manufacture at present is concentrated in two clusters in the country, one at Coimbatore in TN and the other at Rajkot in Gujarat. Many of the units in these places do not make the energy efficient pump sets. It is a good opportunity to develop pump manufacturing facility in Telangana.

The pump set has two parts, the pump and the motor (submersible). The critical part is the motor. Precision machinery is required to manufacture energy efficient motors. Quality winding wire, rotors and stators having close tolerances are the main components. It is suggested that local companies already involved in pump manufacture/ assembly and some reputed companies in Rajkot/ Coimbatore may be enticed to set up upgraded production plants at a location designated as pump cluster in Telangana. If the main components are available thirty forty small units with capacity of 5000 units per year can be promoted in the cluster.

22. Instruments and Controls

Instrumentation is defined as the art and science of measurement and control of process variableswithin a production or manufacturing area. The process variables used in industries are Level,Pressure, Temperature, Humidity, Flow, pH, Force, Speed etc. Control systems comprise of sensors / instruments to measure the output performance of the device being controlled and thosemeasurements can be used to give feedback to the input actuators that can make corrections towarddesired performance. When a device is designed to perform without the need of human inputs forcorrection it is called automatic control. This is the age of automation. Most of the manual work done routinely and repeatedly is gettingautomated. To remain competitive we have to embrace automation. This in turn calls for expertise ininstrumentation and controls. This is knowledge based Industry

Some of the common instruments and controls used are 1. Level indicators with level controllers 2. Temperature indicator/ controller 3. pH indicator controller 4. Pressure indicator / controllers 5. Flow indicators/ controllers 6. Environmental condition monitors 7. Thyristor power controllers 8. Timers

Most of the instrumentation and control systems are now digitalized and computer based controls like on CNC machines are common. Hyderabad has a strong base of instrumentation and controls manufacturing and consulting companies. This should be taken forward by more investment in this sector. We can promote a cluster of instrument and controls manufacturing units as part of ITIR project.

23. Electrical fittings and Micro Circuit breakers cluster

Electrical switches, sockets and plugs are made from metal and plastic components. They serve mainly in construction sector (homes and commercial buildings) for and control of electric power supply.

Miniature Circuit Breaker (M.C.B) is a precision electromagnetic device which is fast replacing the conventional main switch and fuse units used in the control of electric supply. It operates automatically and opens the circuit in case of electric overload or short circuit and shuts off the supply. The hassle of changing the blown fuse wire is avoided as the MCB can be returned to on position after attending to the cause of over load.

Market: Governments at center and states are considering large scale investment in housing during the next ten years. Use of electric and electronic gadgets is ever increasing. Replacement market also grows in future as old dwellings are rewired. All these indicate the huge demand scenario.

Production Process: The production of the Electrical products basically involves the process of machining, punching of metal parts, coil winding, spring making, electroplating, galvanizing, molding of plastic parts, assembling, inspection/testing and packing.

Plant and Machinery: Injection molding machine, spot welding equipment, power press of different capacities, Riveting, welding, Air compressor, Drill , Bench Grinder, Hand press, Semi- automatic coil winding machine, sealing machine, Electric Ovens, Calibration Bench, high voltage tester, Megger 500 , Equipment and instruments for Endurance test, Temperature measuring test, testing Lab, tooling, jigs etc.

Raw Material:-The major raw materials are: Plastics Metal sheets

Wires of different compositions Ceramic parts Metal plating materials and chemicals Packing materials

TEMPO believes that one cluster for production of electrical fittings, MCB and products like inverters and voltage stabilizers can come up in Telangana.

A beginning can be made with 20 to 30 units at a suitable location. Availability of continuous power supply is one requirement. Young people with basic education can be trained for the production and assembly operations.

S.No Production No of units Capacity Investment Annual unit Per day per unit turnover Rs. lakhs Rs. lakhs per unit 1 Plastic 5 2 tons per 30 60 injection day molding units 2 Metal parts 5 1000 Kg 30 60 Manufacturing units 3 Assembly 10 5000 pieces 30 500 units 4 Misc. 10 10 20

Project cost: Total investment in the cluster will be around Rupees twenty crores

Annual production capacity: 150 lakh pieces

Turnover: Rs. 50 crores per year

24. Fractional horsepower and Micro motor cluster

An electric motor with a rated output power of less than 746 Watts (One HP) is considered a fractional horse power motor. There is no defined minimum output, however, it is generally

accepted that a motor with a frame size of less than 35mm square can be referred to as a 'micro-motor'. (from Wikipedia)

In tandem with increasing development in industrial automation, communications, automotive, electric & electronic appliance, and medical equipment, the global micro motor market is growing at a rapid rate. The overall micro motor market is projected to reach USD 35.59 billion in 2020, from USD 28.26 billion in 2015 growing at a CAGR of 4.56%.

The micro motor industry is differentiated by

Input power (AC, DC),

By technology (brushed and brushless),

By power consumption (>11v, 12v-24v, 25v-48v, <48v),

The end uses touch every corner of modern life. Main uses are in:

Automotive: Cars, Boats, Electric Bicycle, (New generation cars have over 20 motors) Home appliances: fans, ovens, mixers, washing machines, air conditioners Medical equipment: Industrial automation Communication equipment Toys

The demand for micro motors in India is going to be very high. The problem in setting up new units is the technology and scale op operation. These products are to be made in large numbers like electronic parts.

GOT can consider encouraging a company with experience in this area to set up shop in Telangana. Large number of ancillary units can be set up to support a large manufacturer.

25. Rechargeable Battery Cluster

1. India has limited liquid fuel resources. It is imperative that we shift to electrical drives for individual transport (e-bikes, e-scooters, e-cars and electrical vehicles for goods transport over short distances) 2. We are going to use more and more solar energy through the photo voltaic (PV) route. 3. There is exponential growth in use of mobile phones, cordless phones, cameras, camcorders, laptops and cord-less power tools.

All above have the rechargeable battery as the energy/ storage source.

Battery is an electro chemical cell. It is a storage device for chemical energy that can be converted to electricity. An electrochemical cell is composed to two compartments or half-cells, eachcomposed of an electrode dipped in a solution of electrolyte. One electrode isready to donate electrons and the other is ready to accept electrons. Whenever there is a conductive path (electrolyte), electrons flow between the cell's two electrodes. The current (flow of electrons) stops when the potential chemical energy is used up.

Cells are classified in to two categories:

Primary cells, which are used once, then discarded Secondary cells that can be recharged many times.

Rechargeable cells operate on the same principle, except that the electrodeand electrolyte materials used are suitable for reversible reaction. Whenconnected to an appropriate charger, the chemical reaction that occurs isreversed and the cells convert electrical energy back into potential chemicalenergy. The process is repeated every time the cell is discharged and recharged.

Larger size rechargeable cells are used in automobiles, emergency lightingand power back up. There are numerous applications in military, railways,ships and industries. Smaller cells are used in electronic gadgets.

Type of rechargeable cells · Sealed lead acid,Nickel-cadmium (NiCad),Nickel metal hydride (NiMH) · Rechargeable alkaline manganese.Lithium ion, Li-polymer

Each type has merits and demerits. Criteria like weight, time between each recharge, capacity, and cost determine which type is used where.

Proposal Coming decades are going to see shift from liquid fuels to electricity as themain energy source in all walks of life. The main change is expected in theautomobile industry. Hybrid cars are becoming popular in the US. In Indiaelectric two wheelers are likely to substitute the petrol ones. It is an opportune time to get into the rechargeable battery business.There are many “Niches” in this market.

Entrepreneurs can start this activity with assembly activity and build it into multi crore manufacturing activity.

The electric battery has number of components like the electrodes, separators, the electrolyte. Several different combinations of electrode materials and electrolytes are used,including lead–acid, nickel cadmium (NiCd), nickel metal hydride (NiMH), lithium ion (Li-ion), and lithium ion polymer (Li-ion polymer). The size of the battery, the components, intended end use offer many variations in design and manufacture.

A cluster of units manufacturing different components with few assembly units can be developed into a cluster. 26. Electric Bicycle

E-bicycle is a bicycle with an electric motor used to power the vehicle. Electric bicycles use rechargeable batteries and can travel up to 15 to 20 mph (24 to 32 km/h), depending on the laws of the country in which they are sold. In some markets they are rapidly replacing traditional bikes and motorcycles (from WikipediA)

The e bicycle can cover 30 to 50 kilometers per single charge. Power consumption per single charge is less than Rs. 5. The cost of travel including annual battery change and maintenance of the bike works out to less than 20 paise per kilometer.

China produces 30 million electric bicycles per year.

Usage of electric bicycle in India is insignificant. It is not that we do not have the capacity to produce this simple machine. Every bicycle manufacturer has a few models. The picture above is a model from TI cycles

In spite of the economy, and weather conditions being more favorable, India has skipped the e bike and lapped on to the petrol driven 100cc and 150 cc motor bikes. Taking a step back and riding the e bicycle, looks economical and environment friendly. Will this happen? What is the pull and push factors that will make this happen?

The main pull factor will be spiraling petrol prices. When petrol prices touch Rs. 100 per liter, the cost of riding a motorbike will go above Rs. two per kilometer.

The push factors are many

1. Mass production to reduce cost. (At present the e bikes in the market are priced above Rupees ten thousand). A twenty percent reduction may be possible. 2. The e bike revolution has to come from the rechargeable battery makers. Maintenance of the battery, design to facilitate quick change, so that the rider need not wait for recharging, battery change points (preferably solar powered) every few kilometers, annual replacement without hassle, and battery recycle are more critical than the other hardware part. 3. Government need step in in big way. New roads should have bike lanes. Duties should be waived and incentives provided to manufacturers. 4. Social media should popularize the electric bicycle as a green alternative.

Three areas where technology up-gradation, standardization and cost reduction is to be done are

Motors Direct-drive or geared motor can used. The motors are one hp or lower. Motor efficiency is a key factor Batteries The rechargeable battery is the heart of the electric bicycle. Frequent battery replacements will make the user pessimistic. Using expensive batteries made of lithium ion polymer or nickel metal hydride is not economical. Well-designed sealed lead acid batteries are economical. As stated earlier the battery manufacturer has to be involved in servicing/ replacing and recycling the batteries to create confidence in buyers. Controls Simple on off mechanism to controls for speed, over-voltage, over-current and thermal protection etc. can be used. There is Rs. 10,000 crore market waiting for some initiative from industrialists and policy makers. Rural manufacturing hubs at different locations in the country can be created to

disperse wealth creation and employment. Telangana state is an ideal location for manufacture and marketing.

27. Agro Forestry clusters

Agro forestry refers to growing select species of trees and shrubs which are harvestable in a comparably shorter time and have multiple end uses as fodder, timber, for making pulp and paper. The latest addition to the desired end uses is in production of alcohol for fuel uses.

The requirements for a tree species to be included in commercially viable agro forestry in India are:

High yield,Non-invasive species, Suited to tropical zones, Drought tolerant, Amenable for high density planting, Amenable for coppicing, Easy to propagate

As per evaluation made by different researchers, best suited species for India are:

Leucaenaleucocephala (Subabul)

Acacia (babul)

Eucalyptus

Prosopisjuliflora

Dalbergiasissoo

Importance of agro forestry in degraded lands otherwise unsuited for agriculture and in degraded forest areas is going to be very important socio economic activity in Telangana state.

Tempo recommends that GOT may consider starting pilot projects for agro forestry in degraded forest lands by formulating a scheme that will provide employment to rural youth, result in development of fodder, timber and feed stock for liquid fuels, while retaining government ownershipof the land.

A tripartite effort involving investors in urban areas, youth in local area and Government can be triedin rejuvenating degraded forest lands under agro forestry.

Subabul is considered the optimal species for Telangana. This gives fodder, timber and some fuel wood. Clones that give yield upto 40 tons per acre in a four year cycle have been

developed and propagated. It is reported that income of Rs. 10000 to 15000 per acre per year are possible. The youth taking up the work can have goat, sheep / cattle rearing as main activity. This way about 100 youth can be provided livelihood for every 1000 acre waste/ degraded lands.

Investors can be enticed with provision of resort type recreational facility. Nabard provides low interest funding for this activity.

28. Solar energy appliances

Solar energy can be put to use in two forms

A. Thermal (heat energy). In this sun light is concentrated by devices that collect and focus the heat energy at one point. One way is to use the thermal energy for heating. High pressure steam can also be generated and then used to produce electricity.

B. Photo voltaic electricity. Here the sunlight is directly converted to electricity by using photovoltaic (PV) cells.

Thus wherever heat energy is needed (cooking, water heating, steam generation, ovens, dryers) solar thermal energy can be used. Electricity produced using PV cells can be used for localized applications or connected to the grid.

In rural areas where power supply is erratic solar energy can come as a savior. Some of the solar energy powered appliances that have become popular are

1. Solar energy based chargers for cell phones and lights

2. Solar powered emergency lights for households

3. Solar water heaters

4. Solar powered torch light

Our country has limited fossil fuel sources and our per capita energy consumption is increasing. Fortunately we have Sun light for a long period of time. It is necessary that we should convert to use of solar energy wherever it is feasible. Every new home built should make provision for using solar energy by installing solar water heaters, PV cell banks for electricity production.

Many training institutions are providing training in assembly of solar energy appliances and also for installing PV cell modules. Tempo recommends that entrepreneurs may undergo the training and take up this activity (Installing PV modules and selling the assembled appliances)

This can be started with low investment and one or two persons can find self employment. Later they can take up street lighting work etc. One cluster for manufacture of solar energy appliances can be set up near a district headquarter.

29. Solar Thermal energy generators manufacture

Our country has advantage over many countries in solar energy. Solar irradiation (solar energy received per square meter area) in India is 15 to 25% more compared to many developed countries and even China. If only, we can harvest this energy in an economical way, we will become energy self-sufficient.

Solar energy harvesting is being done by two methods

Solar photovoltaics – In this solar energy (mainly light) is converted to electricity.

Solar thermal energy - In this solar energy (heat) is being used to generate hot air, water or steam. Low pressure steam can be used for industrial use and for cooking etc. High pressure steam generated is being used to generate electricity like in thermal plants.

For electricity production photovoltaics is preferred. We are setting up large scale power generation units based on this application.

We have not yet started using solar thermal energy in a significant manner. At present the application is mainly limited to steam generation for cooking. If the energy prices start going up again the economics of solar thermal energy production for industrial use will go up.

The applications on threshold of becoming economically competitive are

1. Steam generation for cooking, even for small users like dhabas and function halls

2. Steam generation for industrial use for low pressure steam users like chemical plants and food processing units

3. Hot air generation for industrial drying applications and for drying farm produce

4. Hot water for domestic and institutional use

5. low pressure steam for use in absorption cooling machines for use in cold storages and refrigeration uses.

The cost of solar energy generation is basically in the capital cost for concentrating the sunlight to generate high temperature. There are two components of this. The land required for installing the concentrators and cost of the concentrators. Major part of the cost is on the concentrators. Two types of concentrators are in use, dish type concentrators and parabolic trough concentrators.

Dish concentrator Parabolic trough concentrator

At present the cost of these concentrators is about US $ 200 per sq M. This is for high pressure steam generation that can be used for power generation. For low pressure and medium presuure steam the cost will be lower. Designs of concentrators that will cost as low as $ 50 per sq M have been reported. It is this capacity to to reduce the installation cost to around $ 50 per sqM, that will make solar thermal applications cost competitive.

Tempo believes that it will be inevitable for India to make maximum possible use of solar thermal in future. For this we have to be ready with manufacturing capacity to produce the low cost solar concentrators.

The solar concentrator in final installed form consists of

The dish or parabola made of metallic sheet

The mirrors glued to the dish (made of glass or coated polymers). These mirrors reflect the solar energy on to aa tube or cylindrical vessel in a concentrated form.

The receiver (the tube or vessel) that will absorb the energy (via a fluid being circulated through it)

The structure that will support this system

Pumps and piping for circulation of the fluid

Heat exchangers that will generate steam using the hot fluid

Sun tracking devices

It should be possible to reduce the cost per sq M if all these elements are produced at one place and Government provides appropriate tax reliefs.

Tempo suggests that a cluster may be developed for manufacture of solar thermal concentrators and provided subsidies and tax exemptions. This will be the future of INDIA.

30. Agriculture Implements assembly and servicing

Tractors, power tillers, harvesters have come in to wide use. The trend is continuing. Use of these machines is leading to development of many tools suitable for various agro- climaticzones and different crops grown in these areas. Micro enterprises that can assemble and sell some of the implements can be set up at various places.

Machinery

Description Qty

Lathe machine 1

Electric welding transformer 2

Bench grinder 1 Pillar type drilling machine 1 Blower with motor 1 Portable drilling machine 1

1. Service machines like tractors, automobiles. 2. Assembly machinery like sprayers, micro irrigation systems, weeders, trolleys. 3. Manufacturing units for agricultural implements like plough, blade harrow, thresher, windrower, chaff cutter machine, cultivator, seed drill, dribbler, sheller, transplanter, puddler.

Capacity proposed: 20 parts per day

Power connection: 15 KW

Water: Nil

Turn over: Rs 20 lakhs per year

Profit margin (after all expenses): 10%

Innovations proposed and possibilities: Assemble small machines.

It would be uneconomical for individual units to be set up at a rural location. This can be addresses by promoting a cluster of units at one place. Two or three clusters can come up at different places in Telangana.

Unit Number Investment per unit of units Rs. Lacs

1 20 15.00 General engineering units 2 Casting units 2 50.00

Common facility Abrasion resistance coating 1 200 unit

31. Air Conditioner Assembly

Main parts of air conditioner (split type having separate compressor and evaporation units)

Compressor

Blower

Fan

Evaporation coil

Cooling coil

Expansion valve

Dryer

Thermostat sensor

Control panel with remote

Frame with louvers for compressor unit

Frame with grills and louvers for evaporation unit

Filter for air

Copper tubing

Electrical items like transformer, contactor, capacitors, relays and cables

Process of Manufacture: Procuring of various components like condenser coil, copper pipe, compressor, cabinet, frame, grills, switches etc. Testing components, Assembly, Charging of gas (refrigerant) and final testing.

Market potential: Not only human beings but machines, computers, processes also require conditioned air for proper functioning. CNCs machines, testing labs, calibration centers and even in farming sector demand of AC has emerged. Split AC are becoming very popular because of their aesthetic looks and less noise.

Large companies like Voltas, Blue star, Carrier, Lloyds, Videocon, Samsung etc. are doing very good business in ACs up to the capacity of two ton rating. However, 1.5 ton ACs are much more in demand as this particular unit is suitable for conditioned air up to 1500cu.ft. of spaces very easily, though,videocon and other few companies have come up with split type

ACs of 0.5 ton and 1 ton rating. Despite all these companies mentioned above, substantial share of market of ACs is held by smaller unit. These units are generally assembling components and selling the ACs at competitive prices. The main strategy adopted by large companies is to sell their products through advertisements whereas small assemblers are selling their products by personnel contact and getting repeated orders on the basis of performance and reputation.

Machinery for small scale assembly unit:

Sheet Bending M/c, Sheet cutting M/c hand operated, Hand press, Electrical Portable Grinder, drilling, Vacuum pump for charging, Pressure Pump for testing, Charging Panel, Acetylene, Oxygen Cylinders, torch, hose etc. Swaging, Flaring , Soldering tool and fixtures, Spot welding M/c, Clamp Meter (Digital), Painting Gun, Compressor etc.

It is proposed that a cluster for manufacturing air conditioning and refrigeration machinery may be developed as part of NIMZ coming up at Zaheerabad. Investment of about 500 crores can be attracted into the cluster.

32. Castings manufacturing cluster

Foundries manufacture various types of castings which can be divided into the following categories — ferrous, non-ferrous, aluminium alloy, graded cast iron, ductile iron, and steel. Castings are mainly used in automobiles, railways, pumps, compressors and valves, diesel engines, cement industry, electrical industry, textile machinery, sanitary pipes and fittings, power generation, construction, and many other specialized applications. About 32% global output of foundry industry goes to auto industries and the balance to other downstream engineering sectors. India accounts for about 8–9% of total castings production in the world. The major casting

Investment casting

In investment casting also called lost wax casting, intricate moulds are prepared using a two stage process. First a wax mould is made using the master pattern. The wax pattern is then used to make moulds from sand/resin in cold condition. This is then used for the casing production. The advantages are reduction in machining cost. This method is generally used for casting of high strength alloys including stainless steel.

Pressure die casting of aluminium alloys

Pressure die casting in aluminium alloy offers means for very rapid production of engineering and other related components even or intricate design. The technique has obvious advantages when a component is required in large quantities. Pressure die cast products are used in the form of components of various electrical, electronic, mechanical instruments and appliances used in domestic as well as industrial fields. Demand mainly arises from the sources like defense, telephone industry, automobile components and fittings, Electrical appliances, Electronic components, Builders hardware’s and fittings etc. Demand in these areas again depends upon the primary market, replacement market and substitution market. Because of its high melting point, aluminium silicon alloy is die cast in cold chamber pressure die casting machine. In pressure die casting the molten metal is introduced under pressure into a metallic die and allowed to solidify to produce near-net-shapes. Two types of die casting machines known as cold chamber and hot chamber are usually used. The production rate depends on casting thickness, specified properties of the cast metal and the complexity of the cast shape. This technique produces castings of very good surface finish with high dimensional accuracy. The process provides high yield due to absence of riser and feeding system. Production rate is high and the casting generates more metallurgical integrity. Finer grains and absence of porosity make the casting mechanically compact. Casting size, weight, design and melting point of cast metal, limit the use of the process. Cost of die confines the process only to relatively small parts.

Aluminum gravity die casting and sand mould casting

Engine components like automobile and diesel pistons, automotive timing gear, gear boxes, crank cases, clutch housing, pump bodies, bracket, arms and hangers for different industries, components, fittings for chemical and marine uses, railways, storage tanks, flywheel housing and propellers, artificial limbs, ornamental hardware, ashtrays, water jugs, art metal work, moulding flasks, core drying plates and pattern castings, rotor of ceiling fans and many other components in different fields are made of A1-castings.

Common facilities

1) Establish sand reclamation facilities

2) Establish a Common Facility Centre (CFC) for testing metals and alloys

3) E- centre for CAD/CAM training and design

This cluster can be planned adjacent to the NIMZ under implementation at Zaheerabad

33. Cluster for mold manufacture

Hyderabad is base for machine tool and special purpose machine production. The expertise available is useful for manufacture of molds used in injection molding of plastics. Companies keep changing the containers used for packing their products. This is high in consumer product manufacturing. As we go through the consumption boom, demand for packing containers for different liquid products will be rising. Demand for molds for making the containers will also be increasing

Molds are high precision components and costly to manufacture. This is high skill operation with very good margins. The desired skills are for design and manufacture using CAD and CAM.

Mold manufacturing process: Most of the time molds are multi cavity and for very large volume production stacking multi cavity molds are needed. Molds have to withstand high temperatures and produce identical objects having same thickness and weight. They are made from special alloys.

Mold making process starts with design of components. For each component the feed is prepared (cutting rods, slabs, plates). The material is heat treated. This is followed by milling and grinding. The part is then wire cut to the desired size and goes through CNC precise grinding. Electric discharge coating is the final step. The mold is then assembled and tested.

Apart from demand within the country there is possibility of exporting molds to Middle East and Africa. As the margins are better we can aggressively compete with other East Asian countries for this market.

T state can promote a cluster for units manufacturing precision molds as part of NIMZ being developed at Zaheerabad. The Units in the cluster can produce components for machine tools and auto industry. This will provide employment for high skill workers in design and manufacturing.

34. Environment engineering products

Air, water and soil pollution are threats to our existence on this planet.

Pollution control is a knowledge based business. Subject knowledge, engineering skills and after sales service are important in this industry. This is a promising market forsmall units that are better than large companies in terms of service. Air pollution control and treatment

Filters

Scrubbers

Electrostatic Dust collectors

Cyclone dust collectors

Fume extraction systems

Industrial vacuum cleaners

Air curtains

Micro filters

Clean air systems

Water pollution control and treatment

Filters

Aerators

Bio digesters

Bio filters

Clarifiers

Multiple effect evaporators

Membrane bio reactors

Moving bed bio reactors

Electro deionization plants

Zero discharge systems

RO filters

Sewage treatment plants Solid waste treatment

Municipal waste treatment plants

Incinerators

Composting equipment

We have no choice but to invest into pollution control systems to protect our health and health of planet Earth. Demand for equipment for prevention of pollution and for treatment of polluted water and soil will be increasing fast in future.

We can promote an engineering cluster specialized in production of pollution control equipment.

35. Hand tools and assembly of power tools

A power tool is actuatedby an additional power source and mechanism other thansolely manual labour used with hand tools. The most common types of power tools use electric motors. The trend now-a-days is to adapt power tools in place of hand tools. This increases productivity many fold. Tools used by plumbers, carpenters, electricians, fitters and construction workers, farm workers

Cutting tools

Grinding tools

Fastening tools

Drilling

Crimping

Polishing

Processes such as die casting, machining, stamping and punching, sintering, and plastic injection are involved in hand tool and power tool production. In power tools the additional need is the fractional horse power motor. This is run on mains or with a rechargeable battery.

We can have a cluster of small units manufacturing components and assembling power tools/ hand tools.

36. Hospital furniture and equipment for Senior citizens

Health care is one of the fast growing economic activities. As we build more hospitals andmodernize existing ones, we will be needing more and more hospital beds and ancillary equipment. The population is aging fast and the number of senior citizens is rising, They require support equipment. Demand for these is also increasing.

Most common hospital furniture and support machinery for senior citizens are:

Wheel chairs

Adjustable beds

Operation theater table

Walkers

Physiotherapy equipment

Stands for infusion sets and monitors

Fitness equipment like tread mills

These equipment can be manufactured in general engineering work shops.

Work shop equipment

Cleaning pickling and phosphating tanks

Shearing machine for sheets

Power press

Lathe machine

Sheet bending machine

Pipe bending machine

Welding sets

Gas cutters

Bech drill and portable drill

Powder coating / spray painting booth with equipment

Baking oven

Hand tools/ power tools

Work shop of this tepe can be set up with investment of about Rs. 30 lakhs

Investment on machinery - Rs. 15 lakhs

Total investment – Rs 30 lakhs per unit

A cluster of workshops can be set up at one location specializing in hospital furniture. These facilities can be used for other sheet metal fabrication work.

37. Kitchen appliances

Kitchens in new homes are being planned to reduce the strain on the house wife. Even kitchens in old houses are getting modernized. Accessories to help easy access, minimize manual work, provide comfort, reduce time of cooking are now available in different forms. Tools used by the home maker in preparing ingredients for cooking are also being redesigned. Kitchen appliances is a new and fast growing industry. There is scope for developing one cluster of small units for kitchen appliances at a suitable location in T state.

There are already many units in this line. Some of the successful units can be requested to take up expansion work in the new cluster.

For Ease of cooking

Different cookers like pressurs cooker, rice cooker

Different pans, coated and uncoated

Spatula, Skewers, wooden spoons, slotted spoons, food turners

For comfort and convenience

Chimney,

Sliding cabinets

Cooking range

Ovens and microwave

Toaster

Grill For preparation of ingredients

Knives, meat tenderizer, knife sharpener

Food processors, Mixers, grinders, peelers

Whishkers, beaters, graters, mashers

Rolling pins, roti makers For serving

Plates, spoons, forks, bowls

Small plastic processing units, sheet metal handling units, press shops have to be set up in the cluster. Power driven appliances can be assembled with bought out parts. Common facilities for grease proof coating job work need to be set up.

38. Process equipment manufacturing cluster

Hyderabad is a hub of small volume chemical production (mainly API aka Bulk drugs). Thereare about 400 small and medium scale units. To service these, units manufacturing process equipment like chemical reactors, filters, centrifuges, dryers have come up.

GOT is developing pharma city at Muccherla. This project is coming up in 15000 acre area. Government of India has agreed to accord the status of NIMZ to this project. This green field project is expected to attract many chemical and pharmaceutical industries. Investment of over 20000 crores is expected to flow into this project over a ten year period.

The expertise available can be used to exploit the opportunity of manufacturing and selling process machinery for the new units that will come in the Pharma city.

This infrastructure and expertise can be used for expanding this business sector further. There is huge potential for food processing, plastic processing machinery

It is estimated that over 50000 varieties of foods are produced worldwide. The machinery and equipment used for preparing, packing and preserving this starts with the common kitchen utensils and ends with dedicated processing lines for products like dairy, confectionery, meat and fish processing, ready to cook foods, ready to eat foods and beverages

The food processing equipment industry may be grouped as follows:

Processing machinery and equipment

Packaging machinery and equipment, and

Utilities (include all other machinery and equipment used to clean/ purify air, water etc.)

Indian companies produce a multitude of food processing machinery. But when it comes to high capacity continuous processing lines we are far behind countries like Italy and China. We have to increase our capabilities.

Cftri has developed number of food processing equipment aimed at Indian food processing sector.

Different driers for fruits and vegetables

Modern dhal mill

Roller flaker

Chapati making plant

Automatic Dosa, Idli and vada making units

Dry maize milling plant

Integrated hot air roasting machine

Device useful for sheeting and cutting of chikki and other similar Indian Traditional sweets

Forming and frying machine for foods

New entrants can start with some of these machineries to enter this sector.

Growth prospects of food processing and packaging machinery are very bright.

These facilities can be used to make some machinery for the plastic processing sector also.

A cluster for pharma food and plastic processing machinery will be highly beneficial to the economy of Telangana

1. This will help the growth of food processing sector 2. Cluster approach can provide common infrastructure and marketing costs will getreduced. 3. Technical capabilities will increase. This will be in line with the importance being givento manufacturing industry. 4. Export possibilities are good

This cluster can come up as part of the NIMZ under development at Zaheerabad.

39. Reconditioned machinery cluster

Reconditioning of used machines and selling them with warranty is an attractive business fortechnocrat entrepreneurs. There are numerous advantages to equipmentrestoration, including increased performance and productivity, extendedlifespan, and a new look. Refurbishment/ reconditioning involve reassembling and replacing components to restore the equipment to its originallymanufactured condition. The process is often referred to as remanufacturing.

The sources of the used machinery are

1. Companies who are moving to next level in volume of production

2. Units that have failed and under liquidation

3. Companies having equipment with worn out parts and do not want to invest in newequipment.

The machinery types are

1. Process machinery used in chemical, food, plastic and pharmaceutical units

2. Engineering machinery used in machine building

3. Heavy machinery used in construction, earth moving, material handling and agriculture

The normal practice is for the original machinery supplier to take care of the machine during warranty and beyond based on the service contract. In some cases the service contract is expensive and users are looking for more economical options.

Reconditioning work calls for high skill levels and technology in restoring worn out parts.

The restoration process for worn out parts is done through techniques like:

Hard chrome plating

Plating up – in plasma process

Cold fusion

Building up welding

Laser cladding

Electro spark deposition

Some of the restoration techniques need expensive machinery. To avoid heavy investment by on unit a cluster of units each specializing in one or two techniques may be set up. Other units offering cleaning services, machining services for producing new spare parts can be set up as ancillaries.

Designating a cluster specifically for machinery refurbishing will be useful in marketing for the units in the cluster. This can become a knowledge hub and contracts from foreign countries can be obtained. Buying used machinery from abroad, reconditioning and exporting can also be taken up in the cluster.

40. Rural engineering cluster

Mechanization of agricultural operations is unavoidable for our country. This is necessary for increasing the productivity and reducing the drudgery for farm workers. Tractors, power tillers, harvesters have come in to wide use. The trend is continuing. Use of these machines is leading to development of many tools suitable for various agro-climatic zones and different crops grown in these areas.

The time is ripe for leveraging on this trend to set up rural engineering clusters for skill development, income generation in rural centers.

A rural engineering cluster can have 4. Service units for machines like tractors, automobiles. 5. Assembly units for pump sets, machinery like sprayers, micro irrigation systems, weeders, trolleys. 6. Manufacturing units for agricultural implements like plough, blade harrow, thresher, windrower, chaff cutter machine, cultivator, seed drill, dribbler, sheller, transplanter, puddler. 7. Hand tools production 8. Assembly/ production of dryers for agro products. 9. Machinery for extraction of fiber from agro and forest produce. 10. Machinery for production of building materials. The list can be expanded to include many other farm tools and in course of time the center can make parts for industrial machinery.

TEMPO believes that one such cluster can come up for every district. Existing engineering clusters in semi urban areas in Punjab / Haryana can be taken as models and modified to suit local conditions.

State governments can boost skill development program by seeding few rural engineering clusters.

Following initiatives are necessary

1. Identification of suitable location 2. Land acquisition (involve local leadership) 3. Detailed project report 4. Identify entrepreneurs

5. Utilize existing schemes aimed at weaker sections/ self-employment schemes to fund 10 to 20 units.

Institutions like Central Institute of agricultural engineering, agricultural engineering departments under various universities, IITs, private enterprises have developed many appropriate tools for agriculture suitable for different crops and different areas. Many of them provide training for manufacturing these tools and equipment.

Some of the larger companies will be willing to outsource some parts of their machines or assembly operations and maintenance work to smaller units closer to the market. Such opportunities can be tapped in seeding the rural engineering clusters.

Most of the units can be set up with investment of Rs. 5 to 10 lakhs.

41. Valves and fittings cluster

This will provide a good opportunity for process equipment and ancillary items like pipes valves and fittings. Valves and pipe fittings form substantial part of process plants (about 5%).

It is proposed that a cluster of small industries may be developed at a location between Hyderabad, Muccherla or adjacent to the NIMZ at Zaheerabad.

Manufacture of valves and other fittings used in chemical and processing industry involes two stages.

1. Manufacture of castings

2. Machining to make the finished parts that will be assembled to make the valve.

There are some special process like heat treatment and coating to make products meeting international specifications.

In case of manufacture of valves and fittings for domestic use additional work of nickel plating will be involved.

Valves are made using stainless steel alloys and cast steel. This cluster can be planned close to a cluster producing castings.

Investment in a mother unit that will produce (assemble), take care of quality control and market will be Rs. 500 lakhs. This unit can have a production capacity of 500 tons per year with turnover of Rs 1500 lakhs.

Smaller units that will do machining work on job work may have to invest Rs 20 to 30 lakhs and have job work revenue of Rs 10 lakhs per year.

42. Wire drawing and Ferrocement products

Ferrocementtechnology makes efficient use of scarce material resources. Ferro cement is atype of reinforced concrete consisting of steel reinforcement and thincement – sand matrix.

In ferrocement the reinforcement is in the form of small diameter bars i.e. skeletal steel and wire meshes.Ferrocement is a thin, flexible, elastic and very strong material composed of several layers of fine steel mesh sprayedwith cement mortar. The total thickness of the slab is little greater than the bulk of the mesh.

The main difference between ferrocement and reinforced cement concrete (RCC) is the manner ofreinforcement. In ferrocement closely spaced small diameter wires, which are continuous in both directions andwire mesh function as the major reinforcement whereas in RCC larger diameter steel bars are sparsely placed. Thisfine distribution of reinforcement in ferrocement improves the interaction between reinforcement and the matrix.

These properties give ferrocement several advantages over RCC; the most striking being its` thin section. Ferrocement elements are nearly one fourth to one tenth ofthe RCC in terms of thickness. Henceferrocement elements have reduced dead weight per unit area as compared to RCC. This results in saving ofmaterials such as cement and steel. Lower dead weight makes ferrocement well suited for pre castingoperations and manual handling. Production of ferrocement is labour intensive and unskilled laborers can easilyacquire the skills required for producing ferrocement elements. The primary ingredients required forferrocement – cement, sand, water and reinforcement- are readily available everywhere.

Ferrocement components can be made with the help of simple hand tools and a vibrator, thereby making it ideal forcottage industry. Ferrocement entails economy and speedy construction as its meshes hold mortar in place whiles itis green thereby reducing the need for expensive formwork. This technology offers tremendous flexibility of form as itcan dispense altogether with shuttering.

TEMPO is recommending use of this technology for making manhole covers. The Cast iron manhole covers are costly and RCC manhole covers are too heavy. There is good and growing market from households and Municipalities (for water tanks, water lines and sewage lines). Square and circular manhole covers of different sizes and thickness can be made as per Indian standards and sold along with frames.

Capacity suggested: 200 manhole covers per day

Area required

Open space for casting of manhole covers: 3000 sft

Covered shed: 1500 sft

Water tank 50000 liters

Machine 1 Concrete mixer 2 Press steel cutter 3 Roller bending machine 4 Welding machine with accessories 5 Disc cutting machine 6 Vibrating tables 7 Hand vibrator

Project cost :Rs 10 lakhs. Turnover: Rs. 90 lakhs per year

This will be a working capital intensive unit. Production for municipalities on job orders will be economical. This technology can be used for a making a number other products for economic housing projects.

It is suggested that a micro enterprise cluster consisting of wire drawing units and ferrocement product units may be encouraged at a suitable location. Coated/ galvanized wire can be used for making products like chain link fencing.

43. Assorted chikki and cereal bar cluster Chikki is a ready to eat traditional sweet snack consumed by all sections of population in India.Chikki is prepared by mixing various types of nuts and other ingredients either with jaggery or sugar syrup. The mixture is cooled and molded into desired shapes and sizes and packed. There are many ingredients which are used like groundnut or cashew nut kernels, sesame seeds, pieces of dried coconut, dry-fruits. It provides protein, carbohydrates and fats. This is an excellent medium for providing additional protein and nutrients at an economic price. Chikki can be fortified with other nutraceuticals to deliver additional benefits. Cereal bars are called by many names such as meal replacement bars, Energy bars and protein bars. They are generally designed to provide a compact source of energy, carbohydrates and protein along with micronutrients for the constant traveler, athlete or a person with limited access to a range of nutrient rich foods. The bars can be utilized under the label ready to eat or cereal bars and can also be fortified with vitamins, minerals and dietary fiber to make it into a wholesome food. Also, other ingredients like dried fruits, fruit concentrates, oat products, wheat flakes etc. could be incorporated to prepare a variety of cereal bars. (Source CFTRI)

At present the chikki market is catered to by the Small /micro enterprises. Lonawala on Mumbai-Pune highway is a cluster for chikki with more than100 manufacturers. The cereal bar market is the domain of multinationals. TEMPO is of the opinion that there is scope for innovation in these two product markets and these products can be vehicles for delivering nutritional products to the masses.

To ensure the products are made in hygienic atmosphere and make the processing and market economical TEMPO suggests the following model.

2. Common marketing network may be set up to transport the products and supply to retail outlets. The retail outlets can be developed as franchisees at different locations. 3. Expert assistance for processing technology can be obtained on sharing basis. 4. Individual units can be set up by one or two entrepreneurs and sharing the processing and marketing operations A 20 unit processing complex with following configuration is suggested.

Products No of units Production Investment Revenue Profit capacity in each unit from each margin Kg per day Rs. lakhs unit Rs. lakhs/ yr Assorted Chikki 10 200 10 90.00 10 Cereal bars 10 200 Kg 10 90.00 10 Common 50 facilities including packing lines

Estimated total revenue 1800 lakhs per year

Total area of building @ 40 M2 per chikki unit and 60M2 for cereal bar unit and common utilities will be about 500 M2.

If the building is three floor structure, area per floor will be 500 M2

Cost of building --- 1500x15000 = 225 lakhs

Cost of land (2000 sq.m) 60 lakhs

Investment in the planned units =250 +285 = 535 lakhs

Average investment per unit will be about Rs. 27 lakhs.

This will provide employment to about 100 persons (mainly women). Employment for another 50 persons can be provided as direct marketers at different locations

This complex will be different from other small units manufacturing chikki by way of quality of product and packing. The aim will be to keep control over ingredients used, process

conditions and packing material to deliver products of excellent quality. CFTRI can help with technology.

Promoters with investment capacity of Rs. 10 lakhs each can take up this business

10 % margin on the revenue generated is possible.

The main advantage of this cluster will be joint action for marketing. A distinct product mix of chikki made using different nuts and cereal bars using puffed and flaked cereals in different flavors and fortified with fiber, nutrients available at one point will attract consumer attention.

Kiosks at important sale points like railway stations, bus stands and frequently visited markets can be set up as franchises. Once a firm footing is obtained in the local market (Telangana) the products can be exported to other states. It should be possible to introduce many varieties of chikki and cereal bars and market them through companies like ITC. It is possible to double the turnover (double the production capacity within the premises and improve the profitability.

Other advantages of forming the cluster

1. Get Government support to provide subsidy for the units and possibility of getting the common facilities funded by Government.

2. Getting improved technology from institution like CFTRI

3. Leverage in procuring ingredients at lower prices

4. Obtaining loans under schemes like stand up India

44. Bee keeping and honey based products

Beekeeping is the maintenance of honey bee colonies, commonly in hives, by humans.A beekeeper (or apiarist) keeps bees in order to collect their honey and other products thatthe hive produces (including bees wax, pollen, and royal jelly, to pollinate crops, or to produce bees for sale to other beekeepers. A location where bees are kept is called an apiary or bee yard. One can start beekeeping in just 225000 /- rupees only and you can start beekeeping in august to September. The main work to be done is finding suitable location. Next is buying and setting up the beehive boxes. This is followed by buying bee colonies and introducing them to the beehive boxes.

Uncapping is the first real step of honey processing. It consists of the removal of the thin wax layer that seals the honey cells. The wax caps can be sliced off with a sharp, thin, long knife or special knives heated by steam or electricity. Honey frame processing proceeds, after a manual 2 frame model to motorized units extracting more than 12 deep supers at a time. More commonly, 24 to 72 frame radial extractors are used for commercial enterprises.

The extraction temperature should not exceed more than 30 C. Extracted, cleaned or purified honey is ready to be consumed directly or to be included into other products. But processing technology does not end other techniques are employed to prepare a product of uniform, constant and agreeable appearance.

Investment

Shed of 1000 sft: Rs 200000

Cost of 10 no. of beehives per box 2000*80 =160000/- Cost of 80 bee box 400 =32000/- Cost of apiary equipment (bee-veil honey tent , bee-tool ,bee-brush) =5000/- Cost of honey units + uncapping tray = 12500/- Cost of bee wax sheet 1 kg =350/- per kg

Running Costs

Man Skill Labors cost 5000*12 = 60000

Man Unskilled cost 3500*12 =42000

Migration charge =20000

Feed charge annual = 10000

Total = 132000

Modern beekeeping begins with rearing of bee colonies in the standardised BIS Standard bee poxes. There are three types of BIS bee boxes namely BIS ‘A’ type, BIS ‘B’ type and BIS ‘C’ type. These boxes contains Brood chamber, Super/honey Chamber, etc. These boxes can be migrated from one place to another for honey flow, pollination, etc.

Honey production 80 rupees *40 kg = 3200Rs per Box

3200Rs*80Bee Box= Rs256000

Net profit will be Rs. 150000 per season

Common facilities: Bee box making unit

Modern extraction unit for sharing

Apart from honey production, units that add value to honey can be started. Now a days honey is being used as a sweetener for tea. One unit can make honey pouches that contain one spoonful sugar equivalent honey.

Honey based products 1. Microbrewery for beer made with honey (Government to give special permission to sell this as a specialized product) 2. Breads containing honey 3. Honey based sweets can be made and sold (use honey in Jalebi instead of sugar syrup).There are other sweets that use sugar syrup.

4. Fruit wines made with honey

5. Barbeque sauces with honey

6. Special Cookies with honey.

7. Dark chocolate with honey

45. Cereal flakes

Cereal flakes like rice flakes and corn flakes are snack foods that provide carbohydrates. In western countries these products are used for breakfast. In India their use for breakfast is limited to few urban centers. In our country the practice is to deep fry the flakes and use extensively to make "chivada"- and other namkeen snack items.

While large scale plants for corn flakes have not taken off in India, smaller maize flaker units have become successful during the last few years. Flakes made in these

units are mainly being used in making namkeen snack foods. These flakes can be baked at 3000C and can be eaten as corn flakes for breakfast. Along with a small quantity of sugar mixed in milk, it becomes a health food especially for growing children. Roasted flakes can be used for making cereal bars. A number of units can be set up in major towns of Telangana.

Manufacturing process: The process is very simple. Maize nuts are cleaned and graded to remove mud, stones etc. and then soaked in hot water. After drying, they are roasted and then taken to flaker polisher wherein flakes are formed. Flakes are then passed through sieves to remove bran and broken maize and are then suitably packed in polythene bags. During this process of manufactures, the net recovery of flakes is 80%. Of the balance 20%, process loss is 5% and remaining 15% is bran and broken flakes.

Capacity proposed: 1Tons per day of different cereals (maize, rice, jowar)

The machinery required are:

Machine Qty Grain cleaning equipment set Grader 5 x 2.5 1 Elevator-22 ft. 1 Boiler Suitable to Cooker 1

Cooker –SS 1 Flaker 150 Kg per hour 1 Grader- 5 x 2.5 1 Wheel Barrows- 2 Total

Power connection required: 30 KW

Water: 5000 liters per day

Market: Maize flakes in bulk are being sold in large kirana stores. Namkeen manufacturers, including sweet shops are the main buyers. Part of the product can be used in the LBI for making cereal bars

Turnover when run on commercial basis: Rs. 90 lakhs per year.

Net profit margin: 5%

Innovations proposed/ possible: Bake the cereal flakes and produce breakfast cereals. Supply baked cereal flakes for producing cereal bars.

Cluster of few units in one place, preferably close to another cluster producing cereal bars, snack foods etc. will have advantages like access to technology developments and product mix development.

46. Dry milling of Maize

Dry milling of maize is a very large industry in countries like USA and Mexico. Maize mills are essentially flour mills, the main difference being large size grits are the main products here. The common process used in these mills is termed tempering / degerming process. Here the germ of the maize seed is first removed by wetting the seed and passing through degerming units. The germ contains corn oil. If the whole seed is crushed the germ splits and the oil gets mixed with the products thus reducing the shelf life and making them rancid. Tre degermed corn then goes to roller mills where different grades of products are made

The main products of tempering / degerming process are (Hundreds of products are made from these main fractions)

Flaking Grits: The large size grits obtained, as the top fraction (30-40 %) is a premium product in the developed countries where corn flakes are popular as breakfast cereal.

Brewers Grits: Smaller Maize grits (20%) are used as adjuncts to barley malt in beer manufacture. Normally for 3 parts of barley malt, one part of grits is used. This ratio varies based on type of beer.

Maize Meal ( Suji / Rava) : Coarse powdery fraction (12 %) finer than grits is termed maize meal. The main end uses are in making snack foods, breads, and bakery items. Considering the huge Indian market for these items selling maize rava should be easy.

Corn Flour: The fine powder (10%) obtained during milling is termed corn flour. It can be made use of in preparations where other flours are used. It is used in biscuit and bread production. It can be fortified with Soya meal resulting in a high protein, high- energy food.

Bran/ germ: The pericarp of maize kernel on powdering is termed bran. This is rich in proteins and finds ready market from feed industry. The germ contains oil. Tn small mills a mix of bran and germ is sold as cattle feed.

Proposal

Three districts in Telangana are important corn producing areas. Dry milling of corn will be value adding activity for these areas. Considering the vast scope five units of 2 tons per hour can be set up in each district.

Technology

The technology is inbuilt (machinery supplier will provide the operation details and methods to produce a desired product mix). Consultancy from CFTRI may be considered for development of down-stream products.

Market: Earlier attempts to set up dry milling of maize were not successful because the market was limited. This has changed in the last two decades. All the dry milling products have good demand from the growing snack food sector.

Plant and Machinery

The main plant and machinery consists cleaning equipment, degermer, roller mills, storage and packing equipment

Raw materials: Main raw material is corn – 20 tons per day

Utilities: Power 200 KVA. Water: Small quantity

Project cost

Capital outlay can be 3 to 5 crores.

Turnover and profitability

Turnover of Rs 12 crores with 5 % net profit margins can be expected Strategy/ options: turnkey plants for dry milling are available from Buhler India and some Italian companies (there is one Buhler mill in Nizamabad). These will be expensive. Some of the flour mill manufacturers in India can provide the plant with partly imported equipment.

To reduce the investment the units can be divided into those producing degermed corn grits (investment of Rs. 150 lakhs and the milling units that produce fractions from degermed grits. A cluster of 10 units each in two districts producing maize may be promoted.

47. Fish processing cluster

GOT has recognized fishery development as very important economic activity. Development of village tanks under mission Kakatiya, reservoirs being built under various irrigation projects are going to be the main sources for fish production. Private fish farms may also come up in water rich areas. The potential for fish production in T state is anywhere between five hundred thousand to million tons valued at 5000 to 10000 crores.

Government is making efforts to develop the storage and marketing infrastructure for this huge crop of fish expected. There is need for very large participation from private investors in this effort. Otherwise we will have a crisis of steep fall in prices and wastage of this protein rich food source.

One way is to develop five or six fish processing clusters at locations where large scale crop is likely to be harvested.

The cluster can have

1. Ice plants

2. Sub zero cold storage plants with freezer units

3. Processing plants to produce dressed fish, boneless fish meet, fish fillets, cooked and frozen fish products like patties and cutlets.

4. Cold chain to link the fish harvesting point to retail point.

Government of India (Ministry of food processing industries) has sanctioned one Mega food park for fish processing in Andhra Pradesh state. Private entrepreneurs/ GOT can apply for one such park. MOFPI has a scheme for cold chain link. Private entrepreneurs can set up this. MOFPI is also considering to develop mini food parks. We should beready to use this scheme.

Other options are to get financial assistance from Nabard and subsidies from central fisheries development schemes to set up small processing units and utilize existing cold chain networks to market the products.

The starting point will be GOT taking initiative in declaring some locations for development of fish processing clusters after quick feasibility study.

48. Liquid jaggery and other products

Most of the sugar plants set up in Telangana have been shut down. The sugar cane farmers in these catchment areas have shifted to alternate crops. However there are some pockets where sugar cane cultivation is still profitable over other alternate crops. One option for these farmers is to sell the cane for jaggery production.

While jaggery is sold at prices higher than sugar at retail level it is priced lower at producers` level. This is because the yield of jaggery is high per ton of cane crushed as the entire juice is converted into product unlike sugar where part of it is lost as molasses. Jaggery also has a higher moisture content.

Jaggery production is a cottage industry and the producers use less productive crushing systems. Because of this the juice yield consequently the sweetener yield are lower. Another wastage is the fuel. The economics of jaggery production can be improved by going for better crushing equipment and multiple effect evaporation up to certain level of concentration.

We are suggesting a cluster approach for jaggery production. Jaggery producers in the cluster can have a common facility for crushing and initial concentration of sugar cane juice. (This means that part of a 1000 ton per day sugar crushing unit may be set up as shared facility. Solid jaggery, liquid jaggery and powdered jaggery can then made by small units.

Solid jaggery contains 10 to 12% moisture

It is rich in important minerals (viz., Calcium-40-100 mg, Magnesium-70-90 mg, Potassium- 1056 mg,Phosphorus-20-90 mg, Sodium-19-30 mg, Iron-10-13 mg, Manganese-0.2-0.5 mg, Zinc-0.2- 0.4 mg,Copper-0.1-0.9 mg, and Chloride-5.3 mg per 100 g of jaggery),. Liquidjiggery: It is an intermediate product obtained during concentration of purified sugarcane juice during jaggerymaking, and is semi liquid syrup like product. The quality of liquid jaggery largely depends upon qualityand composition of cane juice, type of clarification additives used, and striking temperature at which concentrating juice is collected. For quality liquid jaggery, the juice concentrate is removed from boiling pan, when it reaches striking point temperature of 103-106°C, depending upon the variety and agro- climatic zone. To avoid crystallization and to make liquid jaggery attractive in colour, citric acid is added @ 0.04% (400 mg/kg of liquid jaggery), whereas to improve shelf life of liquid jaggery without deterioration in quality, potassium metabisulphite @ 0.1% (1 g/ kg of liquid jaggery), or Benzoic acid & 0.5% (5 g/kg of liquid jaggery), is added. Liquid jaggery is then allowed to settle for period of 8-10 days at ambient conditions. Later after filtration, it is properly packaged in sterilized bottles. Chemical composition of typical liquid jaggery could be: water 30-36%, sucrose 40-60%, invert sugar 15-25%.

Powdered Jaggery:The process of making granular jaggery is similar up to concentration. The concentrating slurry is rubbed with wooden scrapper, for formation of grains. The granular jaggery is then cooled and sieved. Less than 3 mm sized crystals are found to be better for quality granular jaggery. Raising of pH of cane juice with lime, up to 6.0-6.2, and striking point temperature of 120°C was found to yield quality granular jaggery with high sucrose content of 88.6%, low moisture of 1.65%, with good colour, friability and crystallinity. Jaggery in the form of granules (sieved to about 3 mm), sun dried and moisture content reduced to less than 2%, and packed in polyethylene polyester bags or polyethylene bottles, can be stored for longer time (more than two years), even during monsoon period with little changes in quality.

Jaggery has traditional uses and has a niche market. Its main use is in culinary products cooked athome. It is also used in making some traditional sweets. Traditional sweet manufacture is the main market for liquid jaggery. The producer of jaggery based sweets will be spared the need for powdering and making the jaggery syrup. Many innovative products can be planned from liquid jaggery. (Use liquid jaggery as honey bee feed. Make a mixture of honey and liquid jaggery for sweetening lemon tea)

Two or three jaggery clusters can be planned in Telangana. Crushing units from defunct sugar mills may be provided at low cost to these clusters.

49. Malt from cereals and related products

Malt is germinated cereal grains that have been dried in a process known as "malting". The grainsare made to germinate by soaking in water, and are then halted from germinating further by dryingwith hot air. Malting grains develops the enzymes required for modifying thegrain's starches into various types of sugar, including the monosaccharide glucose,the disaccharide maltose, the trisaccharide maltotriose, and higher sugars called maltodextrins. Italso develops other enzyme, such as proteases, which break down the proteins in the grain intoforms that can be used by yeast. Depending on when the malting process is stopped one gets apreferred starch enzyme ratio and partly converted starch into fermentable sugars. Malt alsocontains small amounts of other sugars, such as sucrose and fructose, which are not products ofstarch modification but were already in the grain. Further conversion to fermentable sugars isachieved during the mashing process. Malted grain is used to make beer, whisky, malted shakes, malt vinegar, confections suchas Maltesers and Whoppers, flavored drinks such as Horlicks, Ovaltine, and Milo, and some bakedgoods, such as malt loaf, bagels, and rich tea biscuits. Malted grain that has been ground into acoarse meal is known as "sweet meal". Various cereals are malted, though barley is the mostcommon. A high-protein form of malted barley is often a label- listed ingredient in blended flourstypically used in the manufacture of yeast breads and other baked goods. Malt based foods have gained prominence as people are becoming health conscious. Malted cereal products are good for diabetic patients. They provide food in easily digestible form and good for elderly. The most common malt is made from Barley. Wheat malt, Ragi malt, Maize malt and sorghum malt are also made. For beverage industry malt is made in automated plants called malt houses. Malt can also be made in small scale for local consumption. The same process can be used to make sprouted bean powders. The sprouted bean powders are good adjuncts for dal and sambar and other curries as thickeners. Small scale malt production unit can be set up with investment of about 15 lakhs. It is suggested that a cluster of small malt making units may be promoted at a suitable location in Telangana. Marketing will be the main challenge. Support by way of providing access to mid day meal schemes can provide the initial support.

50.Masa Flour from corn and Taco bowls Masa is Spanish for dough. Although the word is mostly used to refer to any kind of dough, it is often short for corn dough. It is used for making tacos, tortillas (chips and roti like wraps). To make masa field corn (maize) grain is dried and then treated by

soaking and cooking the mature (hard) grain in a diluted solution of lime (calcium hydroxide). Lime helps the dissolution of the major glue-like component of the maize cell walls, and loosens the hulls from the kernels and softens the corn. Some of the corn oil is broken down into emulsifying agents (monoglycerides and diglycerides), while bonding of the corn proteins to each other is also facilitated. The soaked maize is washed, the hulls removed and then ground into masa. The masa can be used to make chips, or formed into shell or bowl shapes and eaten with different fillings. This is a cottage industry and can be set up in very small towns also for self-employment of one family.

Item Qty Steel vessels 5 Cooker 1 grinding unit 2 Former/ sheeting machine 1 Baking unit 1 Electrification

Capacity proposed: 200 Kg per day

Power connection: 15 KW Water: 2000 liters per day

Turn over: Rs. 30 lakhs lakhs per year Profit margin (after all expenses): 10%

Innovations proposed and possibilities: Making taco shells suiting Indian chat industry, selling along with salsa.

There is possibility of developing this as a cottage industry. One large unit that can take care of marketing can be encouraged with 40 to 50 cottage units run by SHG groups.

51. Compo pack meals

(source Defense food research laboratory Mysore)

Supplementary Compo Pack Ration packs have been designed for short sustenance needs. It contains pulav andhalwa mixes and enables the soldier to have a tasty meal under field conditions. The pack also provides threeservings of tea, a foldable stove and hexamine tablets for outdoor cooking.

A Composite pack ration that provides a full day's meal, delivers around 3700 calories and weighs less than aKg has been developed by the Laboratory to meet the strategic operational requirements of the Armed Forces.All items of ration reconstitute readily in hot Water in just 10-15 mins. The pack also includes hexamine fueltablets and a foldable stove to enable cooking. The pack ration is best suited, for use by the police and para-military forces on patrol duty, mountaineers, trekkers, picnic enthusiasts, etc. Armed Forces procure large quantities of compo packs andsupplementary compo packs every year. 'Interested entrepreneurs can obtain training in processing and packing ofthese items from DFRL. (Defense food research laboratory, Ministry of Defense, Mysore)

This concept can be used to pack meals for tourists going on trips to distance places and with some variance for travelers in general.

DFRL has developed many technologies of preserved food. Some of these technologies can be used to make meal packs that provide food under hygienic conditions at remote places.

A cluster of small units making individual components supported by a marketing company can take up this project. This cluster can be located at any place provided with necessary infrastructure. 52. Meat products cluster

(This profile is made for market in Hyderabad area. It can be replicated or scaled down for other urban conglomerates having 3 million and above population)

Meat is a good source of protein. Per capita consumption of various forms of meat in India is about 5 kg, with poultry meat having 60% share of this. There is need for increasing this. Primary requirement for this is increased farm operations. This is linked to stable and remunerative prices.

Processing meat into products in ready to eat or ready to cook form will add value and provide scope for better price to the farmers. Using extenders in limited quantities ensuring minimal variation in taste and protein content can make the products more economical for the consumer.

To ensure the products are made in hygienic atmosphere and make the processing and market economical TEMPO suggests the following model.

1. A multiple unit processing complex may be set up at a location having good transport network to the main market. The facility can be a multistoried building that can house several units with individual processing facilities. Common areas for primary processing (slaughtering where necessary, cleaning etc.) can be at one place. This will ensure the construction of facility meeting the latest food product safety norms. 2. Common marketing network may be set up to transport the products and supply to retail outlets. The retail outlets can be developed as franchisees at different locations. 3. Expert assistance for processing technology, consultancy from experiences chefs can be obtained on sharing basis. 4. Individual units can be set up by two entrepreneurs joining together and sharing the processing and marketing operations

TEMPO has considered Hyderabad as one target market. A 20 unit processing complex with following configuration is suggested. Present market size of Hyderabad urban conglomerate is in the range of 100,000 kg of processed meat products per day and growing at 5 to 6 % per year. Suggested complex will be producing 1000 kg of products. The market can easily absorb this additional supply.

Products No of Production Investment Revenue from Profit units capacity in each each unit margin Kg per day unit Rs. lakhs/ yr Rs. lakhs I Chicken products 7 50 30 60 20 II Lamb meat 3 50 30 90 15 products III Fish products 3 50 40 60 20 IV Other meat 2 50 30 60 20 products V Other sea foods 2 50 40 90 20

Vegetable protein 3 50 30 60 15 VI foods

Estimated total revenue 1350 lakhs per year

Total area of building @ 40 M2 per unit and 24 units - 960 M2

If the building is four floor structure area per floor will be 320 M2(Assuming the ground floor is left vacant total area will be 1280 M2)

Cost of building --- 960x12000 + 320x 6000 = 134.20 lakhs

Investment in the planned units = 1000 lakhs.

Two research institutes under ICAR are providing technical support and training for entrepreneurs. CFTRI can also help with technology.

Investment in each unit may come to Rs. 50 lakhs. Promoters` investment of about 15 lakhs, subsidy of 10 lakhs and loan of Rs. 25 lakhs can be considered.

15 to 20 % margin on the revenue generated is possible.

53. Milk Products cluster

Due to the initiatives taken by Government and entrepreneurs, milk supply has substantially improved in various parts of the Telangana. This is expected to grow further.

Simultaneous action to develop entrepreneurs to take up milk based products manufacture can help in 1. Front end market tie-up for the small dairy farmers

2. Value addition

3. Employment

Table at the end of this profile lists nine units that can be set up based on milk and soya milk. It is possible to expand the product mix to include another seven /eight projects of same size with new products or duplication.

The advantage of units of this size is:

1. Each can be promoted by one young entrepreneur 2. These Projects fall under food processing sector and MOFPI subsidy of 25% of project cost as grant is available. The scheme is decentralized now. Each project can be funded in the following way

Total project cost Rs. 50 lakhs

MOFPI grant Rs. 10 lakhs Term loan Rs. 30 lakhs Promoter Rs. 10 lakhs (Investment in individual units may vary between 30 and 40 lakhs. Investment on common infrastructure will be 10 to 15 lakhs)

NDRI--- Karnal, can provide technology for these projects. This will be useful in getting bank approvals. Cluster of small dairy farms and ancillaries like fodder production and feed units can also come up in the vicinity. These units can be set up within a year along with the dairy units A small cluster with 10000 liters of milk processing can be planned with overall investment of about 7 crores. This will give good impetus for a rural area.

1. The critical issues for success of venture would be backward (milk) and forward (market) links. Market is crucial. Clusters which can provide reliable supply and adequate volumes have better prospects of tie up with existing players. 2. There is scope to develop about five identical clusters at different locations in Telangana where additional milk supply of 10000 to 20000 liters per day is likely to materialize. This will involve training of 30 to 40 entrepreneurs and hand holding services until Our recommendation to entrepreneurs is to start with market and raw material tie up. Choose products where technology risks are not there. Add innovative products in course of time.

GOT can help this cluster formation by asking the dairy federation to take up marketing of the products (Vijaya brand is quite popular. Most of the products are already being marketed. The product lines can be expanded to increase new products. Retail part can be again franchised out.

List of Recommended Projects

I Vitamin 2000 liters 2060 30 per 198.00 10 40.00 fortified milk per day liter Milk with 1000 liters 1030 30 per 99.00 15 extra calcium per day liter II Milk Paneer 100 kg / day 1030 200 per 66.00 10 30.00 Kg Paneer with 100 Kg / day 775 150 per 49.50 10 25% soya kg Paneer with 100 Kg / day 515 120 per 39.60 10 50% soya Kg III Mozzarella 120 kg/ day 1030 200 79.20 20 30.00 cheese IV Acido whey 1000 liters 10 33.30 20 30.00 per day Butter milk- 1000 liters 250 10 33.30 20 whey drink per day fortified with calcium Yoghurt 300 liters / 300 40 39.60 day V Soya milk 1000 10 33.30 20 40.00 liters/day Tofu 200 Kg per 60 39.60 20 day VI Ready mixes 500 Kgs per 1000 100 150.00 20 40 for kheer, day gulabjamoon VII Ice cream 500liters/day 250 60 20 30.00 (bulk for parties) Ice cream 500 liters / 125 50 20 with 50 % day soya solids VIII Half and half 500 Kg/day 1000 75 180.00 20 30.00 (cream & milk) Khoa 200 Kg/day 1000 Condensed 100 kg/day 300 milk Butter 30 Kg /day 1000 400 160.00 10 Ghee 10 Kg / day 500 IX 20.00 Low fat milk 1000 liters 30 91 with vitamins per day

54. Millet products

Millets are small (compared to cereal grains like wheat and rice) seeded grains of annual grasses found inarid and semi arid areas

(Sorghum/ Jowar) Great Millet

(Ragi) finger millet

(Korralu) Fox tail millet

(Bajra) Pearl Millet

(Varigalu)Proso millet or common millet

(Bontachamalu) Indian barn yard millet

(Arikalu) Kodo millet

(Samalu) Little millet

Millets are expensive compared to other carbohydrate food sources such as wheat and rice. They are however more beneficial for health. The main advantage is high fiber content of 4 to 12 % compared to 1 % in rice and 2 % in wheat. They are also high in Iron and other minerals.

There is no gluten in millets

• Lignans, an essential phytonutrient present in millet, are very beneficial to the human body. Under the action of interstitial friendly flora, they are converted to mammalian lignans, which act against different types of hormonedependent cancers, like breast cancer and also help reduce risk of heart attack.

High in phosphorous

Proven to be good for diabetic persons. Reduces risk of type 2 diabetes

Comparison with oat meal/ Quinoa: Oat meal and Quinoa are being recommended for health benefits like higher fiber content, zero gluten content and higher mineral content. Millets will provide the same benefits at half the cost. They are produced locally and have been part of Indian diet for centuries.

Products to be made

1. Flour from gently roasted grain

2. Mixed millet flour with certified content like fiber, minerals

3. Millet flour mixed with whole wheat flour

4. Murukulu and ariselu from millets

Cultivation of different Millets is native to Telangana. This expertise need be protected and encouraged. Varieties that have higher fiber content and rich in trace minerals have to be identified and multiplied. With a little marketing push the niche market already created can be improved to benefit millet farmers. The need is to produce value added products and provide information on quality of the product

We can Identify and train a few small scale millet processing entrepreneurs in milled producing areas. A local brand can be built connecting a cluster of small millers and compounders. Market in other Indian states and even export market can be targeted.

55. Mini Food Park

TEMPO is proposing to help entrepreneurs set up a mini food processing park at a suitable location within fifty kilometer radius of Hyderabad. This will be a special project with focus on functional/ fortified foods and other health foods. These units will be ideal startup ventures for entrepreneurs to get into the food processing business.Advantages of setting up the units at one location are:

1. Collective action for getting clearances and assistance from Government

2. Sharing Infrastructure will reduce investment needs

3. Technology acquisition will be easier

4. Sharing marketing costs and marketing infrastructure will improve market reach and profitability

Main features

The challenge for any food processor is marketing. Small units cannot afford costly promotion and will not be able to compete with large industries for getting shelf space in retail outlets. SMETS is proposing independent retail outlets/ franchise outlets for the group as an economical alternative. These will be run by the group members or franchisees. Hyderabad will be main market. The size of the outlets will be small and economical enough to sustain breakeven levels.

Laws governing food processing industries are being tightened. Sanitation, hygiene and quality control are the focus areas. Small units in isolation cannot meet these requirements. Common infrastructure will help here.

Processing units for food products considered good for health will form major part of the projects. Simple existing products are being recommended with value added features. This approach will be good for startup ventures. Brand building and product line extensions can be attempted by the entrepreneurs at later stage.

Table at the end of this profile lists some recommended units. This can be further expanded. The investment range is Rs. 100 to 200 lakhs.

Each can be promoted by one entrepreneur or two entrepreneurs joining together These Projects fall under food processing sector and MOFPI subsidy of 25% of project cost as grant is available. The scheme is decentralized now. Each project can be funded in the following way

Total project cost Rs. 100 lakhs MOFPI grant Rs. 20 lakhs Term loan Rs. 45 lakhs Promoter/s Rs. 35 lakhs

TEMPO can help with technology tie up. Mentors in technology, marketing and project implementation will be identified by TEMPO.

Entrepreneur profile

SMETS is looking for 70 to 80 entrepreneurs to take up this scheme on collaborative basis for sharing the infrastructure and marketing network. Entrepreneurs considering entry into food products manufacture/ marketing and capable of raising 40 to 60 lakhs of own money are the ideal choice.

Course of action proposed

The first step is identifying suitable entrepreneurs. We are hoping that such a group can be identified in about three month.

The procedure is

1. You respond by sending a mail () expressing your interest and brief details. (Please don’t ask for additional information on the projects at this juncture). We are not going to ask for any fee from you. 2. We will acknowledge your expression of interest. If the response is inadequate we will inform you and if you are still interested in setting up a project on your own, you can meet with us. We will guide you with information available with us. No fee asked. 3. If there is adequate response we move to implementation stage. This involves technology transfer agreements, acquiring land in an existing industrial estate or new area, applying for financial assistance followed by project implementation.

List of Recommended Projects

N0 Products Number Investment Turnover Net of Units per unit Per year profit Rs. lakhs Rs. lakhs margin % 1 Foods for diabetics like soup mixes, sugar 2 200 600-1000 5-7 less bakery products, biscuits and beverages 2 Baked beans and other processed bean 2 100 250-400 5-7 products Butter milk- whey drink , yoghurt fortified 2 100 300 500 5-7 3 with calcium 4 Soya milk, Tofu and whole soya flour 2 100 300-500 3-5 5 Mozzarella cheese 1 200 6 Dry fruits and nuts including tutti-fruitti 2 100 500-700 3-5 production 7 Dressed fish products and lean meat, eggs 2 200 1000-1500 3-5 with omega 3 8 Minimally processed vegetables for salads 4 100 500-700 3-5 9 Low fat Milk Paneer and paneer with soya 2 100 300-500 3-5 10 Honey and honey based foods 1 100 500-700 3-5 11 Special chikki and energy bars 4 100 300-500 5-7 12 Fruit and vegetable juices added with 2 200 1000-1500 3-5 functional components like fiber 13 Whole grain flours of wheat, jowar, maize 2 200 1000-1200 3-5 and ragi 14 Freeze dried fruit juices 1 200 500-1000 5-7 15 Baked snack foods from maize/ jowar, 2 200 500-700 3-5 papad 16 Sprouts, Malt from barley, ragi and wheat, 1 100 300-500 5-7 malt fortified with vitamins/ iron/ folic acid etc. 17 Whole wheat bread and other baked 1 100 300-400 3-5 products 18 Oat meal and related products 1 200 19 Vegetable oils with low cholesterol 1 100 2000-3000 2-3 (Re-packing) and low fat salad dressings 20 Special teas and green tea 2 100 300-500 5-7 21 Fermented and pickled foods like. Tempeh, 2 100 300-500 5-7 kefir, yoghurt, pickled cucumber, Sauerkraut including vinegar production 22 Frozen beans , sweet corn and other exotic 2 100 300-500 5-7 foods 23 Salsa and fermented salsa 1 100 200-300 10 24 Pickled vegetables in vinegar 1 100 300-500 5-7

56. Fruit Juice powders

Freeze-drying is the technology of removing moisture from a product by first freezing the product to convert the moisture into a frozen form followed by high vacuum application to vaporize the liquid without thawing the food itself (sublimation). This produces a dehydrated food that can be stored at room temperature until needed. One of the uses of this technology is in producing fruit juice powders.

Freeze-dried fruit and vegetable powders offer all nutrients, color, taste and aroma of the original product. The product can re-hydrate instantly when water is added. These powders act as natural food flavors. . Freeze-dried fruit and vegetable powders find application in preparation of: Beverages Bakery products/ breakfast cereals Confections and sweets Dairy products like flavored milk and yoghurt Energy foods/ cereal bars Pharmaceuticals

Following fruits are processed to obtain powders employing the freeze drying technology.

Orange (mosambi)

Mandarin orange (santra)

Acid lime (nimbu)

Pine apple

Banana

Mango

Pomegranate

Grape

The processing technology involves following stages

Ripened fruits are, washed, blanched, peeled, and pulped to extract the juice.

The juice is homogenized after adding a carrier like sugar/ maltodextrins.

The homogenized juice is frozen in suitable containers.

The frozen juice is sent to the freeze dryer for sublimation of the frozen moisture, giving a dry powder. The powder is aseptically packed in pre-sterilized containers to preserve the taste, flavor, color and aroma.

Process technology for manufacture of fruit juice powders is developed by Defense Food Research Laboratory. This technology can be used to produce other freeze dried products like herbal juice powders.

TEMPO envisages very good prospects for the project. A unit can be set up in areas where two or three fruits in the above list are grown. The unit can process the fruit in flush season and shift to alternate products in lean season.

Acid lime, Mosambi and santra are the volume products and ideal for Indian market and exports. Availability is very good in Telangana state

Capital Investment: Unit can be set up with investment from Rs. 300 lakhs to 50 crore.

TEMPO is recommending this project because of value addition possibilities. There are excellent export possibilities. Assistance from Ministry of food processing industries can be availed for the project. This project is suitable for entrepreneurs who are financially sound and thinking of starting small and go up to turnover levels of 1000 crores in a ten year period.

Large sized mother unit with small ancillary processors at the fruit producing centers can become a cluster. 57. Neera and fruit wines

(This profile is based on information given by India SME Technology Services Ltd. (ISTSL) www.techsmall.com. ISTSLis a company promoted by SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI) and four other Public Sector Commercial Banks of India)

Fresh Neera is traditionally consumed in several states of India. It has alarge microbial population (Bacteria and yeast), due to which it starts fermentingwithin an hour of its collection. The fermented product, known as Toddy (tadi) is a pungent sour smelling liquid containing ~ 5.0% alcohol. The keeping quality of Neera is very

poor and unless stored under chilled conditions it deteriorates within 5-8 hours after collection.

Proposal

There are good prospects of promoting carbonated Neera as a beverage. This can be promoted as a drink similar to “Champagne”. A brand can be built for export of this beverage.

Suggested capacities:

Ten thousand liters per day capacity bottling unit with 10 Nos, 1000 liters per day collection units can be considered

Process.

The keeping quality of Neera is very poor and unless stored under chilled conditions it deteriorates within 5-8 hours after collection. By passing the Neera through a membrane filter, it is possible to remove the microbial contaminants in Neera, thereby dramatically increasing its shelf life and stability. Moreover this process does not adversely affect the taste and nutrient profile of fresh Neera. The collection center can have filtration and chilling facilities.

Ultra filtration, decolonization and deodorization followed by carbonation and bottling can be carried at central bottling unit.

Plant and Machinery

Membrane Unit consisting of membrane, Prefilter, SS pump, Rotameter,Pressure gauges, fittings, SS Tank, Steam Boiler, Diesel Gen Set, Neera filling machine, carbonation unit, Laboratory equipment, Cold storage refrigerator

Project cost: About 5 crores for collection units and bottling plant

Turnover and profitability: Assuming carbonated neera can be sold at Rs. 100 per liter (before taxes). The unit can have turnover of about 15 crores per year 150 working days) with margins of 20%

The same company can market different fruit wines. Mango, Sapota, and other fruit juices having high sugar content can be made into wines. While the market may not be as big as for grape based wines, these can be positioned as specialty drinks. Small wine making units can be set up at one location by SHG groups. The mother unit can blend these fruit wines and market through Beverages Corporation.

58. Nuts, dry fruits and dehulled seeds

Dry fruit market in Hyderabad has grown phenomenally in the last two decades. We have dry fruit wending shops in every locality now. Growing prosperity and conceived health benefits are the reasons for this growth. There is need for deriving some advantage from this market by local entrepreneurs.

We are suggesting a cluster of small processors at one of the district headquarters. The processors can concentrate on grading, operations like dehulling/ dehusking, packing for retail trade and packing for gift giving. Some of the dry fruits are imported and some have local origin. There is possibility of promoting some local fruit based snacks.

Some examples:

Flavored dry fruits Ex: mango tid bits (dried pieces) flavored with pomegranate juice. Papayyatid bits flavored with pine apple or pomegranate juice. Dried amla flavored with pine apple/ pomegranate juice

Roasted and spiced nuts can be marketed by the cluster.

Dry fruit

Dates (khajjur)

Raisins (kishmish)

Prunes from plum

Fig (Anjeer)

Blue berry prunes

Apricot (khurban)

Dried pineapple

Dry mango strips

Dry papaya

Nuts

Pea nuts

Cashew nut

Almond

Pista

Walnut

Hazel nut

Pecans

Dehulled seeds

Dehulled sesame

Dehulled sunflower

These are all high value products and the business is working capital intensive. High networth individuals can venture into this business. A cluster of 30 to 40 units engaged in sorting, processing and packing of dry fruits will have benefits in joint action for import and export. It will be easier to deal with regulatory requirements.

59. Ready mixes

(source: CFTRI)

The term convenience food covers a host of prepared foods and beverages sold off shelf. These are generally ready to eat/ ready to cook foods Ready mixes and other convenience foods, save time and labor and provide hygienic products of standard and uniform quality with good shelf life. These products could find a ready market in the urban, middle-income working families, industrial labor and large-scale catering establishments. Instant mixes offer a good potential for export market, especially to Gulf countries, UK, USA, ECC countries, etc.

Fermented and dehydrated ready mix for Dosa, Idli, and Ready mixes for Vada, Jamun, Jilebi, Chakli (muruku), Maddurvada,Pakoda, Flavoured pan Cake, doughnut and Combination doughnut, sambar powder are some of the products for which CFTRI is offering technology.

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It is estimated that a unit for manufacturing ready mixes and convenience foods with a capacity of 3 Tons per day can be set up with an investment of Rs. 200 to 250 Lakhs. This unit can be designed to meet food safety regulations and hygienic practices.

Marketing is the critical factor for success of this project. The product mix should be chosen to ensure that marketing costs are low. One way is to tie up with a large company like Hindustan Unilever or ITC. Manufacturing for a retail chain like reliance is another option. Costs and economics of such marketing tie ups have to be understood before making an investment decision.

As an alterntive it is suggested that a cluster of ready mix product units may be promoted at one location. These can be supported by mini dal mills and mini flour mills. In this way they can become low cost producers. They can take care of the hygiene aspects and meet regulatory stipulations. This strength can be used to promote the products in places like Hyderabad.

One cluster can be planned in a mandal where production of pulses is high. The cluster can diversify into soup mixes in course of time.

60. Sauces and salsa

Ketchup is a sweet and tangy sauce, typically made from tomatoes, sweetener, vinegar, andassorted seasonings and spices. Seasonings vary by recipe, but commonly include onions,allspice,coriander, cloves, cumin, garlic, mustard and sometimes celery, cinnamon or ginger.(Wikipedia). Tomato ketchup is also called tomato sauce. In cooking, a sauce is liquid, cream, or semi-solid food served on or used in preparing other foods. Sauces are not normally consumed by themselves; they add flavor, moisture, and visual appeal to another dish.(Wikipedia). Tomato sauce, Soya sauce, Worcestershire sauce are the most consumed sauces. Some sauces are used as salad dressings. Preparations referred to as dips are also sauces. Salsa is the Italian and Spanish term for sauce, and in English-speaking countries usually refers to the sauces typical of Mexican cuisine known as salsaspicantes, particularly those used as dips. Salsa is often a tomato-based sauce or dip that is a heterogeneous mixture that includes additional ingredients such as onions, chilies, beans, corn, and various spices. It is typically piquant, ranging from mild to extremely hot. (Wikipedia)

Demand for these products is on the increase. The processing is fairly simple, at the same time like all food preparations these preparations can be an art. The many variants in use of ingredients and processing methods offer great scope for innovation.

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While large scale processing and bottling involves production of standardized products, small manufacturers have the advantage of producing different tastes and create niche markets. We can have one cluster manufacturing ketchup, sauces, dips, salad dressings and salsa of different combinations. SHG of women in one or two mandals can be trained and provided the resources to manufacture these products. Individual units can have investment of two to three lakhs. About hundred processors can be involved to produce different products. CFTRI can provide the technical support. Quality control and treatment for pasteurization (reducing microbes to harmless level) will be the process challenges. Common facility for this step and packing can be planned at a central location. Marketing will be the main challenge. Having a mother unit to take care of the marketing will be ideal. Alternately tie up can be made with a marketing company. A brand can be created with the place of origin as the catch word.

61. Solar drying of fruits and vegetables Sun drying of food products is an age old technology. The tradition in ruralcommunities was to put excess vegetable and meat under the sun to dry and use them in lean season. Refrigeration and cold storage technology has helped in preservation of food in better form. Dehydration and sun drying technology is still relevant to India. There are many food products that can be dehydrated and used in that form or rehydrated for use. Fruits in particular can be dried using osmotic air drying method to obtain “tuttifruitti” that can be directly consumed as snack food. Some of the fruits and vegetables that can be dehydrated and stored are listed below.

Fruits Fruits Vegetables Vegetables

Papaya Banana Mushroom Onion

Grapes Figs Green peas Ginger

Mango Dates Green beans Capsicum

Apple Pine apple Tomato Brijal

Peach Jackfruit Pompkin Sweet corn

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There are two methods to use solar energy for drying

1. Direct drying under the sun 2. Drying in shade using hot air generated by solar energy Dryers that can be used under the two methods have been developed by research institutions and tested for different products. These can be got fabricated at low cost with the help of the research institutions Apart from the two methods fruits can be dried using osmo-air dehydration technology.

Preparation of the fruits/ vegetables for dehydration is an important operation. Techniques like blanching, exposure to steam for a short time etc. are used before slicing/ dicing. It is also necessary that the air circulated should be filtered through micro filters and dryers should be installed under clean conditions to avoid contamination.

Capacity proposed: 50 Kg per day dry products (150 to 200 kg raw product)

Machinery

S.No Component Qty

1 Equipment for cleaning and preparation set of fruits/ vegetables for solar drying

2 Solar dryers 4

3 Packing equipment 1

4 Utilities and electrification

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Utilities: Electricity requirement shall be 15 HP (back up electric heaters used when Sun light is very poor) whereas per day water requirement would be 2000 liters.

Turnover when run on commercial basis: Rs. 20 lakhs per year.

Investment: Rs. 10 lakhs per unit. Net profit margin: 20%

Cluster of about 20 units at one place will help in developing marketing connections, getting improved technologies and expanding the product mix. Common facilities like a boiler as standby, packing units and quality testing equipment can be planned in a cluster.

62. Soya Products cluster

Soya Bean has emerged as an important crop in the states like Madhya Pradesh, Maharashtra, Andhra Pradesh and Karnataka. Apart from being a source of oil Soya is a rich source of protein. Products from whole soya flour and defatted soya flour have found wide acceptance as protein source. There is good scope for establishing Soya processing units as clusters to exploit the raw material availability in the soya producing belt or near the major urban centers. Some of the products are:

TEMPO suggests that interested entrepreneurs can join together and promote Soya products manufacturing cluster at one location. Numbers of units that can be considered are listed in the table.

A cluster approach is suggested to get the benefits of collective bargaining and information availability. Marketing is the main challenge. Large companies are entering the retail business. They will be looking for assured supply sources. Smaller companies in clusters like this can tie up with the large retailers. Cluster approach can provide common infrastructure and marketing costs will get reduced. Many institutions are providing the technical knowhow. Turnkey plants are supplied for some of the products.Technology links can be established. Further product innovation will be easier.

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63. Spices and food additives

India is world`s largest producer and consumer of spices. We are number one in production of chilly, turmeric and cumin and have significant production capacities for many others. Telangana state contributes to chilly and turmeric production. We (Telangana) consume large quantity of spices. The production strengths and market for other spices can be effectively used to set up a spices value addition cluster in the state.

To start with we can establish two cryogenic grinding units and a few conventional grinding units for spices. The cryogenic grinding results in full bodied (retains volatile fractions that give the flavor) spice powder. Cleaning, grading, packing whole spices and ground spices will be the main activity. Locally produced, bought from other states in India and imported spices can be handled. Same way local market, markets in other states and exports can be serviced.

Manufacture of some food additives like breading and batter mixes, natural food thickeners, food flavor formulations, natural food colors can be taken up in the cluster.

Ground spices

Mirchi

Turmeric

Dried ginger

Corriander

Jeera

Garam masala dehydrated onion

Pepper

Imported spices

Clove

Cinnamon

Nutmeg

Bay leaf

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Food additives

Food flavors

Food colors

Natural additives for thickening

The cryogenic grinding units will cost about Rs. 300 lakhs each, conventional grinding units will need investment of 20 lakh to 50 lakhs each. Food additive units will need investment of Rs 50 lakhs to 200 lakhs each. Cluster with overall investment of Rs. 20 crores (40 units) can have the infrastructure to attract buyers.Many food related items can be taken up in the cluster over a five year period.

64. Baby corn and Sweet corn products

Sweet corn has become popular in many parts of the country now. So far availability was a problem. Now it is grown in the country. Being predominantly vegetarian there is huge market potential for sweet corn in our country.

Sweet corn is eaten as a snack food. It can be added to many vegetarian dishes. The dough can be used to make products like “vada” and “attu”. Some of the products are:

Sweet corn masala chat

Sweet corn and beans mix masala chat

Sweet corn vada

Sweet corn attu with fillings

Sweet corn added to different curries (similar to use of green peas)

Sweet corn cultivation can be carried out by all the farmers cultivating regular corn. This is a short duration crop (no need to to wait for the corn to dry). Additional benefit is that green corn stalk can be harvested and converted into silage.

Sweet corn is being marketed as corn on cob, hulled corn in frozen condition. It is also possible to market the corn in chilled condition in polythene sachets if the sale can be made on the same day.

Entrepreneurs in maize growing areas can consider this activity for self employment.

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Sweet corn threshing machines are now available. Entrepreneurs can market, sweet corn cobs, hulled corn and sweet corn dough in important urban centers.

Investment of Rs 5 lakhs is needed.

This can be operated from Home.

One large size unit with investment of 100 to 150 lakhs and 20 small units with investment of 5 lakhs each can be planned as a cluster. The cluster can market different products mentioned above. Baby corn and sweet corn as corn on cob can also be marketed by the cluster. The frozen products mix can be increased by adding frozen beans (shelled, without pods), green pea, green chick pea etc.

65. Tomato and mango pulp production clusters.

Telangana has a rich horticulture base. We produce tropical fruits and vegetables inexcess of our own consumption. The area under horticulture crops is increasing now. We need to developpreservation and processing facilities for the fruits and vegetables to prevent wastage and drastic fall in prices during flush season.

Fruits that are being cultivated on large scale are: Mango, Guava, Papaya, Pomegranate, acid lime, sweet lime and orange.

Among these, Mango, papaya and Guava can be converted to pulp and puree and preserved for considerable time with storage in cold storage. Among vegetables that can be converted to pulp are, Tomato, ripe red chillies. Tamarind is another fruit that can be processed to pulp.

The general scheme of pulp extraction is given below.

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There may be small variation in destoning/ deseeding and skin removal, but the main operation of pulp extraction, filtration and concentration are identical. This can be used to advantage in setting up small processing units that handle multiple materials based on availability at low prices.

T state can promote two or three clusters for these fruit pulp units spread over few mandals that produce surplus of the fruits.

We are going to have three Mega food processing parks in T state. The Park developers will invariably set up a large scale fruit processing unit. They can be asked to set up a blending unit and source pulp from the small producers. This way the transport and wastage during transport will be saved.

Small processing unit can be set up with investment of Rs. 30 lakhs. They can use solar thermal units for generation of hot water and steam. The cluster can also have some jam and jelly production units.

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66. Vegetables pickled in Vinegar

Traditional pickle making in India is salt based. Salt-based pickles actually create their preservative properties through the act of lactic acid fermentation. Live cultures that live on the vegetables react with the vegetable starches in the presence of salt and water. The lactic fermentation produces very low pH making survival of pathogens impossible. This preserves and gives the desired taste.

Vinegar-based pickles are other common form of pickling. Cut vegetables are submerged in just boiled vinegar brine. This process destroys the natural culture and rich enzymes. The acidic nature of denatured vinegar does the preserving. Salt, sugar and spices are added to flavor these pickles.

Vegetables best suited for Vinegar pickling

Cucumber/ Gherkins

Mushroom

Onion bulbs

Carrot/ beet root

Cabbage/ Cauliflower

Capacity proposed: 100 Kg per day

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Machinery

1 Bottle sterilizer

2 Cooking range

3 Liquid filling machine

Utilities: Power connection shall be 3 KW. Water requirement would be about 1000 liters per day

Turnover when run on commercial basis: Rs. 50 lakhs per year. Net profit margin: 5%

This can be implemented as a cluster of micro enterprises. The mother unit can make vinegar and provide the vegetables, vinegar and bottles to SHG groups. The finished product can then be marketed by the mother unit

67. Sports shoe manufacturing cluster

Sports shoe has become a favorite for walking and jogging enthusiasts. The market has grown phenomenally in the recent past. The growth will continue. These shoes are made with knitted nylon / artificial suede uppers. There is scope for tapping the market with local production.

Running shoes are made from a combination of materials. The sole has three layers:insole, midsole, and outsole. The insole is a thin layer of man-made ethylenevinylacetate (EVA). The components of the midsole, which provide the bulk of thecushioning, will vary among manufacturers. Generally it consistsof polyurethanesurrounding another material such as gel or liquid silicone,or polyurethane foam given a special brand name by the manufacturer. In some casesthe polyurethane may surround capsules of compressed air. Outsoles are usually madeof carbon rubber, which is hard, or blown rubber, a softer type, although manufacturersuse an assortment of materials to produce different textures on the outsole. The rest of the covering is usually a synthetic material such as artificial suede or a nylonweave with plastic slabs or boards supporting the shape. There may be a leatheroverlay or nylon overlay with leather attachments. Cloth is usually limited to the lacesfitted through plastic eyelets, and nails have given way to an adhesive known as cementlasting that bonds the various components together.

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Shoemaking is a labor-intensive process, and the cost of producing the many components of running shoe reflects the skilled labor necessary. Each phase of production requires precision and skills. This will provide employment for skilled workers trained in this craft.

Shoe manufacturing process

Stamping the fabric

Assembling the upper and the insole

Attaching the upper and bottom

Quality control

GOT is developing a leather products cluster at Station Ghanpur. Sports shoe manufacture may also be encouraged hers. One or two units for manufacture of the synthetic upper fabric may be encouraged. A number of small downstream units can come up if the component production is streamlined.

68. Synthetic leather

Artificial leather is a leather substitute consisting of natural or synthetic fibre cloth coated with plasticized polyvinyl chloride (PVC) or polyurethane (PU). These coatings can be dense or foamed depending on the application. Usually it gives the

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appearance of natural leather. PU & PVC Synthetic Leather is used as a substitute for leather in fields such as shoes, bags and tops of convertible car, automobile upholstery, vehicle trimmings, furnishing and other uses where a leather-like finish is required. These are manufactured in a range of colours, embossing and finish depending on the area of application.

Availability of natural leather is not adequate for various end uses. PVC coated cloth is already being manufactured in large quantities and used for low end applications. PU coated cloth is also being manufactured to some extent. New technologies and machinery have been developed to produce synthetic leather that looks and gives comfort (breathing) like leather

There are two aspects of synthetic leather specifications. First is the surface of synthetic leather, such as leather pattern, color, hand touch and style. Second is physical properties making synthetic leather fire-retardant, radiation-protective, wear-resistant, high-peeling, waterproof, breathable, antibacterial, deodorant, wear- resistant and scratch-resistant. The base material used for the synthetic coating is important in developing some of the desirable properties. Micro fiber based non woven material has become popular base material in recent times. Nonwoven material can include a variety of chemical fiber and natural fiber like polyester, rayon, nylon, polyolefin fiber and so on.

This is a growth area and manufacturing in India is highly fragments (many small units).

Tempo recommends an integrated plant that manufactures the base material, micro fiber based non woven fabric and the coating plant which can produce low end to high end material.

This project is suitable for entrepreneurs who can mobilize risk capital in the range of Rs 10 to 15 crores. The overall project cost is estimated in the range of Rs 25 crores

Investment

Land: 2 acres 100 Lakhs

Buildings: 300 lakhs

Nonwoven Plant: 500 lakhs

Coating plant: 500 lakhs

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Pre op expenses 250 lakhs

Working capital margin 850 lakhs

Total 2500 lakhs

First step is to make a detailed market study of the end uses like shoe and leather goods, automotive applications, upholstery. The products being manufactured in China can give good idea about what sort of new products can be introduced. The turnkey plant suppliers will help with the product mix selection.

GOT has plans for developing Station Ghanpur area in Warangal district into a leather products park. It is suggested that one or two sophisticated artificial leather manufacturing units may also be promoted here. This will help the down stream units in availability of alternative raw material. The number of downstream processing units can be substantially increased with availability of high quality synthetic leather.

69. Cattle Rearing

Animal rearing has significant role in development of India’s economy. Animal Husbandry, Dairying andFisheries sectors greatly contribute in the national economy and in the socio- economic developmentof the country. The Livestock are the best insurance against the vagaries of nature like drought,famine and other natural disasters. Over the years the traditional cattle species of our country has degenerated into nondescript varieties and their contribution to farmers` income has declined. Government has been trying to address this by; 1. Production of improved cattle out of local nondescript low productive animals by setting up ofCattle Development Centres (CDCs) and cross breeding.

2. Improving the traditional high performance local species by artificial insemination

Main concentration is on dairy animals (cows and buffalo). We also export cattle meat and some sections of the population consume beef. Breeding high performance cattle and rearing the calves (female into dairy animals and male for meat production) will be remunerative in areas where green fodder availability is good and grazing lands are available. Economics of rearing cow and buffalo calves for are given below

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Time required for rearing to maturity 36 m0nths Calf weight at birth - 20 Kg Herd weight after 36 months rearing - 250 Kg Feed conversion rate: one kg live weight on feed of 6 Kg feed on 100% dry basis

Feed mix 40% dry fodder 20% greens 20% corn silage 20% concentrate

Average feed cost works out at Rs. 8 per Kg

Cost of feed for three years (for attaining 250 Kg weight): Rs 11040 With grazing the cost will go down to 7500 Other expenses: 6000

Average selling price of mature animal– 20000 per animal (male female ratio of 50:50)

About Rs. 6000- will be income per animal in three years. A farm with 100 herd will provide income of Rs 600000 three years.

However it may not be economical to take up this business in isolation and at a 100 herd level. Cluster approach where five farmers will join and raise 500 calves with own breeding facility will be more economical. Ten such groups in one Mandal can make a cluster of 5000 capacity. A model of part grazing and part stall feeding will reduce the feed cost. This cluster can be encouraged in a location where grazing land is available.

The cluster can be supported with a well-equipped veterinary center, few feed mixing units, silage production units.

70. Cluster for duck meat and products

Duck meat is a very flavorful type of poultry. Most people do not cook duck meat at home, but it can be a delicioustreat when eating out. Duck meat is a good source of protein, niacin, phosphorus, riboflavin, iron, zinc, vitamin B-6and thiamine and smaller amounts of vitamin B-12, folate and magnesium. Duck meat is relatively high in fat andcholesterol, especially if you eat the skin.

Hyderabad is a very large market for traditional poultry (chicken). There is good scope for developing market for duck meat as a low priced specialty in restaurants, curry points and catering houses.

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Rearing of ducks for meat can be tried as a cluster business in one of the Mandals in Telangana where water is available in tanks throughout the year. This can be planned as additional income source to low income households.

The concept is to plan for a duck meat processing unit as mother unit with market links. Right type of ducklings can be given to the families with a commitment to buy back the ducks at maturity. Feed can be provided to supplement the nutrition of ducks.

Central Avian research institute, Indian veterinary research institutes of ICAR can provide guidance about right breeds and rearing of ducks for meat.

71. Cluster for pork production

Pork is the most popular meat in East and Southeast Asia, and is also very common in the Westernworld. It is highly prized for its fat content and pleasant texture. Muslims and Jews do not eat pork asit is forbidden due to religious beliefs. While there is no restriction on pork eating by non-muslim meat eating Indians, the market is not very large. However considering the high pressure on traditional meat sources like goat and sheep, diversification of the source to other animals is an economic necessity. Hyderabad is a very large market for meat of different varieties. There is good scope for developing market for pork meat as a specialty in restaurants, curry points.

Rearing of proper variety of swine for meat can be tried as a cluster business in one of the Mandals in Telangana. This can be planned as additional income source to low income households.

The concept is to plan for a pork processing unit as mother unit with market links. Right type of piglets can be given to the families with a commitment to buy back the animals at maturity.

72. Cluster for rabbit meat

Rabbit meat is a considered a delicacy. Rabbits breed fast and it is economical to raise rabbits for meat production. This was tried by entrepreneurs at number of places with mixed results.

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1. As per Indian Law we cannot catch, kill or keep a Rabbit as Pet animal. But since 1960, the Government of India has taken initiative in importing Rabbits. Thus growing or keeping Imported Rabbits is authorized by Indian Law. 2. The reproduction capacity of Rabbits is very high. One female Rabbit delivers every 30 days.She delivers 5 to 10 babies per delivery. 3. 15 days after delivery the female Rabbit gets ready for mating again and the pregnancy andlactaion period is just 30 days. That means a female can deliver babies every 45 days, whichis very fast growth of reproduction. In five years a mother Rabbit will deliver 34 times. 4. Fast breeding : - Female rabbit gives birth to 1 - 21 babies at a time. They areready for reproduction at the age of 3-4 months. 5. A rabbit attains weight of 2 kgs in 60 days and is ready for sale

A unit of 10 rabbits (eight female and two male) of 60 days old along withcage fitted with automatic feeding and watering system costs around 13,500.In a year a unit will be able to produce 2,000 bunnies.The potential netincome from this unit after taking into account the cost incurred for feedingand management is around 35,000 to 40,000 annually,”

A cluster of rabbit farming units can be promoted in one or two mandals. Small farmers/ landless villagers can be assisted to set up one or two rabbit rearing units (10 rabbits each). This can be supplementary income. A mother unit should take care of providing the correct breed to start with, concentrate feed, veterinary services and take up marketing. Rabbit meat is well accepted in rural Telangana and Shops selling chicken meat and goat/ sheep mutton can sell rabbit meat. Market can also be developed at dhabas, restaurants and curry points.

Adequate expertise is available with veterinary institutions in the state on the breeding and rearing of rabbits

73. Cluster of dairy farms

Dairy farm with 100 buffalo/cows is considered an ideal size for commercial dairy farming involving, stall feeding and mechanization of operations. This involves investment between 120 and 150 lakhs.

It is however been found that often times commercial dairy ventures of this size and higher sizes are not running profitably. Small family size units with four or five cattle, maintained at home of the owner having captive green fodder field, are found to be doing well. There may

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be many reasons for this, some individual and systemic. One factor that stands out is the attention paid by the small farm owner.

Actually there is no great social benefit from large dairy farms in our country. Dairy farm activity is well suited for employment creation and wealth creation in the rural areas. Our effort should be find the ideal combination where the operations can be carried out at lowest cost while taking care of the quality aspects.

One model we can consider is to have a cluster of farms at one location (within one compound). The catlle may be owned by individual farmers and maintained individually. Each farmar can have his own source of green fodder.

Cluster model

Ten dairy farmers

Each having ten cattle (hybrid/ high yielding)

Ten sheds within a fenced compound of two acres

Common infrastructure for water supply, power supply

Each farmer having two acre farm for green fodder/ grow corn for silage making

Feed mixing machine

Milking machines

Common gobar gas plant

Generator to generate power using Gobar gas

Compost making unit.

Milk chilling unit

The capital investment will be between 120 and 150 lakhs (10 to 12..5 lakhs each)

The cluster benefits will be

Possibility of direct marketing to institutional consumers resulting in hibher price

Veterinary care through contract agreement

Bargaining power in ingredients for concentrated feed

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Obtaining Government support

Extra income from by product like compost.

Our estimate is that each farmer can get net income of Rs. 25000 per month from this model.

74. Fish farming in cages

India has to look to the oceans for energy and food. It is necessary that we master the available technologies and innovate further to meet our needs. One of the relevanttechnologies is fish rearing in enclosures (cages). Telangana is endowed with large water bodies (large size tanks, minor and major irrigation projects) and substantial scope exists for fish farming.

The fingerlings/ young fish are from hatcheries/ grow out tanksare stocked and allowed to grow in a floating enclosure such as cage. Besides the natural feed available in the environment, the fish is fed with supplementary feeds. The cage provides protection from predators. Fish grow rapidly reaching a marketable size of 200-250 grams within six months in the tropical waters.The estimated yield per cage (10 M dia) is 2 Tons in six months.

Central Marine fisheries Research Institute (CMFRI) have successfully demonstrated the viability of marine fish culture in cages as an experimental project near Vizag. Some states like Chattisgarh have taken the lead in introducing cage culture in sweet water lakes. Officials from Telangana have studied these projects and action is initiated to introduce cage culture in Telangana.

PROPOSAL

TEMPO suggests that this project be taken up by entrepreneurs at various locations to be identified by the fisheries department.

For making the projects techno economic viable following back ends and forward integrations have to be firmly in place.The first consideration is selection of proper location. Various regulatory issues, socio economic issues and environmental impacts have to be considered in addition to techno economic aspects.

The first need is economically priced cage

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The cage will have a diameter of 10m-20m depending on the available area forproduction and is made out of HDPE pipes. It has two circular nets, an outer predator net and an inner fish net. The inner fish net will be stocked with fingerlings. The outerpredator net is to protect the fingerlings from the attack of the predators in the lake. Inaddition there will be a bird net to protect the fish from birds. Feeding systems,additional floats and aeration systems are provided based on the conditions.

Cage manufacture/ assembly is simple. HDPE pipes of different sizes, Nylon nets and fasteners are needed to fabricate the cage. This can be done on site. Economy depends on procuring the materials in bulk and from right sources.

The next factor is feed. Supplementary feed that can provide nutritional balance can be procured from existing fish feed manufacturers. If sufficiently large cluster is planned, feed production can be taken up.

Forward tie ups include processing/ storage and marketing. In areas where fish processing activity already exists, this will not be difficult. Where such facilities are not available, techno economic aspects of minimal processing and transport have to be estimated.

Few hundred cages in close proximity appear to be a viable operation. Production of about one thousand tons at one location over a six month period can be considered.

Note

A modified version of this will be intensive fish rearing in plastic tanks. Entrepreneurs having capacity to take some risk can consider promoting this concept. In Telangana we have large paddy fields under borewell irrigation. At some of these fields fish culture in plastic tanks can be taken up. The water from the tanks can be used for irrigation (fertilizer value). . A cluster approach may be adopted by involving the fishing community.

TEMPO has not made detailed cost and market analysis for this project. Entrepreneurs have to carry out market research on their own.

CMFRI is the best source for techno economic information and assistance in implementing the project.Fish farming community can also provide guidance. National Fisheries Development Boart located at Hyderabad assists entrepreneurs for these projects. They will provide necessary information.

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As GOT is implementing number of irrigation projects many large lakes are coming into existence. Cluster of fish farming units can be set up in these water bodies. Technology to take care of water pollution has to be incorporated in these ventures.

75. Goat and sheep rearing cluster

The main limitation for sheep and goat rearing is availability of grazing lands. Reduction in grazing lands is a concern and alternatives have to be explored. The system of raising lambs for meat under grazing with supplementation, although cost effective has not been largely adopted by the farmers due to their poor economical background and age old traditional practices. In places where grazing land is a problem stall fed goat/ sheep rearing is found to be economical and finding favor with farmers now.

Another method is to separate breeding and rearing. The major advantage of this program is that the sheep owner can rear the animals only for six months and not for the whole year. This technology would help the farmers in reducing the time period and getting almost same profit per animal in addition to avoiding the mortality risk and unnecessary rearing of lambs for the whole year.

Economics of rearing ram lamb for meat are given below

Time required for fattening 6 months Ram weight at Purchase (2 month old) 8 Kg Ram weight after 6 months rearing 26 Kg Feed conversion rate: one kg live weight on feed of 10 Kg on 100% dry basis Feed intake will be 180kgs over six month period

Feed mix 30% dry fodder 25% greens 20% corn silage 25% concentrate

Average feed cost works out at Rs. 14 per Kg

Purchase price of Ram – 2500

Feed cost: 2520. -- Other expenses: 500

Selling price of ram – 6500

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About Rs. 1000 will be income per ram in six months. A farm with 200 rams will provide income of Rs 200000 in six months.

It is however may not be economical to take up this business in isolation and at a 200 herd level. A cluster approach where five farmers will join and raise 1000 rams with own breeding facility will be more economical. Ten such groups in one Mandal can make a cluster of 10000 ram capacity (500 rams per day). A model of part grazing and part stall feeding will reduce the feed cost. This cluster can be encouraged in a location where grazing land is available.

The cluster can be supported with a well equipped veterinary center, few feed mixing units, silage production units and a hygienic slaughter house.

76. Desi Poultry processing cluster

Telangana state has a thriving poultry industry. Cage based poultry farming for eggs (layers) and for meat (broilers) is practiced on large scale in districts adjoining Hyderabad.

Recent trend in poultry meat consumption is the development of a niche market for desi chicken meat and organic chicken meat. This commands a premium price.

This trend can be exploited to develop a cluster for chicken meat from organically farmed desi chicken in one or two mandals in the state.

Few varieties of desi chicken breed have been developed by our research institutions. These breeds can be used in the proposed cluster.

A marketing company that operates on the Suguna model can be encouraged to take up the cluster development.

For organic farming of chicken large open spaces are needed for the chicken farming. The cluster may be developed in Mandals where there are large number of mango/ citrus gardens are existing. Poultry entrepreneurs can get into agreement with the garden owners to use the land for raising poultry. Small plots fenced with reusable fencing material and covered with nets can be used for this purpose.

Small processing units for hygienic processing of chicken can be set up to convert the slaughtered birds into different products. This can be frozen and marketed to institutional and individual consumers.

Size of the cluster: 5 lakh birds per three months

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77. Adhesives and sealants

An adhesive is a material used for bonding two materials together so as to act as a singlematerial.

A sealant is a material used for creating a leak proof barrier. Ex: sealing of glass fixed in an aluminiumwood or pVC window frame.

Adhesives and sealants touch every aspect of our daily life Seven major end uses of adhesives and sealants are:

Construction

Packaging

Transportation/ vehicles

Rigid bonding

Non rigid bonding

Consumer products

Tapes/ labels

There are two stages of adhesive and sealant manufacture

1. Manufacture of the resin

2. formulation of the adhesive/ sealant

Neoprene/ poly vinyl acetate based adhesives: These are the largest volume adhesives used in wood working, shoe and leather goods, automobiles, bus body building, ship building flooring tile laying etc.

Solvent cements: Pvc piping for drains and UPVC piping for cold and hot water is becoming the norm. There are three plastic plumbing pipes that are put together with glue. Theyare ABS, PVC, and CPVC pipes. The adhesives are called solvent-cements. The basic principle is to use the same resin (UPVC resin to bond UPVC pipes). The resin is dissolved in a quick drying solvent like tetrahydrofuran or methyl ethyl ketone. This is made into a paste. When the pate is applied to at the bonding point, it dries up and a bond is formed.

Epoxy sealants: These are two part sealants/ adhesives. Ex: araldite and M seal.

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Silicone sealants: silicone sealants market is growing as commercial constructions use have more glass. These are best foe sealing the glass to the aluminium frame.

Pressure sensitive adhesives: These are mostly used in tapes and peelable label manufacture

A cluster for manufacture of adhesives, sealants and tapes can be promoted in one of the industrial corridors. Some units manufacturing the resins can also come up here.

BARC and ISRO have some technologies for licensing.

78. Ayurvedic Medicine cluster

There are about 21 varieties of compound formulations in which some of the single drugs of animal origin ( 52 nos.), Mineral origin (55 Nos.) and plant origin (351 Nos.) are used. The details of the single drugs and other particulars can be had from the Ayurvedic Formulary of India.

Aristha and Asava : Liquid preparations made by fermentation of herbs (Asava) or extracts from herbs (Aristha). The fermentation medium used is honey or liquid jiggery.

Avaleha or lehya are pastes/ creams prepared from herbal extracts or powdered herbs mixed with ghee or oils.

Churna and Gutika: Churna is a finely powdered herb and fruit mixes. Gutika is made from the churna or bhasma by mixing with suitable ingredients and making into pills or tablets

Cultivation of medicinal herbs is already an economic activity in T state. There are some industries extracting medicnal products from the herbs and marketing in India and exporting to other countries.

Even in developed countries alternate medicines have market. Herbal products for treatment of many ailments connected with gastro intestinal problems, vigour and vitality are being marketed as generally safe.

There are few well established companies like Dabur, Patanjali, Baidyanath in the market in India. Many smaller manufacturers also exist. Government India is also supporting projects aimed at producing herbal medicines under AYUSH project.

The demand for herbal based medicines and other alternate medicines is likely to increase in double digits. We can consider promoting a cluster of herbal medicine companies at a location where cultivation of herbs is predominant. Cluster format will give the units the marketing muscle. A brand connected with the location can be promoted

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We have educational institutions and hospitals in this specialization. We have “vaidya” having years of experience in this traditional treatment system. These strengths can be exploited fully and proven treatment solutions made available at least for some ailments

Suggested cluster model can be on the following lines

Products to Number of Production Investment in Revenue per Profit margin be made units capacity per each unit each unit % unit Rs lakhs Rs lakhs per Kg per day year Powders, 10 250 10 150 5 pills making Liquids 10 1000 liters 20 300 5 Pastes and 5 100 20 300 5 creams Common facilities Quality 50 control unit Packing unit 50

Marketing will be the main challenge. Bringing in one established company in the line to set up a mother unit will be desirable. On line presence of the cluster and the products also will help.

79. Biodegradable disposable plates and cups

Leaf cups and plates making are an age old profession in Indian villages. They are traditionally handmade products. With the advent of newer and advanced technology in present days this laborious craft can be transformed into an easy process through machining. CSIR-Central Food Technology Research Institute has introduced an advanced technology of easing the manufacturing operation and producing containers in elegant shapes and sizes. Cups and plates made with the help of this machine have good dimensional stability besides being inexpensive, hygienic and biodegradable.

The machine

Leaf Cup Making Machine is a device used to make cups and plates with leaves of certain trees such as dried banana leaves, Areca leaf sheath or dried Butea Frondoza leaves.

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This machine helps to prepare stronger, elegant and uniform cups and plates of different sizes from leaves and paper at a rate much faster than the conventional method of leaf-cup making. In case of flimsy leaves, another layer of leaf, paper or polythene may be used for reinforcement the method which is quite simple. No adhesives are required to make the final product.

Process

The plant leaves are cleaned, dipped in water and dried.

The dry leaves are washed and softened by soaking in water for 10 to 30 minutes and again dried until they become pliable. The correct point of dryness is reached when the leaf does not crack and can be folded to 180 degrees, across the grain. All parts of the leaf, more than 3 mm thick are cut. A sheet is made by stitching the leaves. The sheet cut to appropriate size is placed on the lower die pattern, which is pressed down and released after a few seconds. The folding, trimming and shaping are done in a single operation through the machine by pressing of the pedal.

The energy regulator is set to maintain the main die temperature at about 150 Degree Celsius.

This is very simple operation as upper die goes into lower die assembly through pressing the pedal by foot. After few seconds, pedal is withdrawn thus both dies go to their real position. Finishing of the product is done by just trimming the edges of the manufactured products.

We can consider promoting a cluster of micro units in one mandal where leaves suitable for plate and cup making are available. Other categories of disposable plates and cups (from paper, aluminum foil, plastic) can also be made in the cluster. This will help in providing different mix for different end uses.

The main issue will be ensuring availability of leaves at competitive prices. Possibility of developing suitable plantation can also be explored.

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80. Costume Jewelry

The words, costume jewelry, imitation jewelry, fashion jewelry are synonyms used to describe low cost ornaments manufactured to decorate or complement a particular costume/ garment.

Some of the products made are;

Bangles

Ear rings

Bracelets

Pendants

Rings

Designer buttons

Cuff links

Necklaces, mala sets

Hair pins/ clips

Buckles for belts and brooches

Wide variety of materials are used in manufacture of costume jewelry

Cubic Zirconia (imitation diamond)

Semi-precious stones

Titanium

Hematite

Copper

Gunmetal

Brass

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Silver

Sterling silver

Gold plated silver

Metal plated plastic

Glass

Wood

Proposal

The wide array of products and materials presents unlimited scope for a creative team.

There are many small and micro enterprises working in this area. Considering theexpected huge surge in the population of young persons, TEMPO estimates that there is still scope for new micro and small enterprises in this area.

TEMPO suggests that three or four entrepreneurs may join to set up theses project.A color glass bead making unit may be set up to feed the jewelry making units. The cost on fuel may be reduced by opting for a biomass based gasifier.Smelting, wire drawing and automatic chain making unit may be set up to feed the jewelry units

A design institution may be appointed as consultant on retainer basis.Investment of about 50 lakhs may be required for a project to cover four districts (10 to 15 million population)

The critical aspect is marketing. Existing units use gift and novelty shops and exhibitions for marketing. TEMPO suggests a mobile marketing van for continuous operation in a specified geographical area. Supplying materials for other manufacturers and outsourcing some products can also be considered

TEMPO is recommending this project because of high market potential in semi urban and rural areas. Entrepreneurs with artistic and design skills can make good profits.

A cluster of costume jewelry units is recommended to be set up near a district headquarters.

Some of the units can make accessories for leather products and luggage.

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81. Fermentation products Cluster

Industrial fermentation is the intentional use of fermentation by microorganisms such as bacteria and fungi to make products useful to humans. Fermented products have applications as food as well as in general industry. Some commodity chemicals, such as acetic acid, citric acid, and ethanol are made by fermentation. Chemicals Ethanol, Citric acid, Lactic acid, Gluconic acid, Glutamic acid, Lysine,Vitamins, Polysaccharides. Pharmaceutical Products Penicillin, Cyclosporin A,,Gibberellin, Lovastatin. Enzymes: Catalase,protease, amylase,pectinase, glucose,isomerase, cellulase, hemicellulase, lipase, lactase, str eptokinase and many others. Recombinant proteins: Insulin, hepatitis B vaccine, interferon and many other products’

In industrial fermentation two methods are used. Surface fermentation uses a solid medium for growing the desired organism. In submerged fermentation liquid medium is used.

The largest volume product of Industrial fermentation is ethyl alcohol used for making alcoholic beverages and for blending with petrol. Molasses and grain are used as raw material for making ethyl alcohol.

Reports in press and media indicate that the public sector oil marketingcompanies like HPCL, IOC and BPCL are considering setting up eight secondgeneration fuel alcohol plants in the country. Second generation technology refers to use of agriculture residues, wood and other biomass as feed stock for producing ethyl alcohol. This technology is now at testing stage. M/s PRAJ industries, Pune are running a demo unit. These plants will be large in size compared to traditional molasses/ grain based alcohol plants. The size may be in the range of 5000 Kilo liters per day and investment of Rs. 5000 crores. These units will play a significant role in energy security our country. Telangana state has distinct advantages for attracting one or two units. The first priority in site selection will be availability of feed stock. We are producing huge quantities of paddy straw, corn stover, cotton and soya stalk. This can be supplemented with other bio mass generated through fast growing energy plantations under social forestry schemes. The unit can be located close to Godavari river, providing adequate water supplies and low grade coal

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as cheap fuel source. All these will make the second generation fuel alcohol production economical.

Apart from alcohol there is very good scope for producing and marketing chemicals like citric acid, lactic acid, enzymes and many other products.

T State has advantages like availability of grain like maize for preparation of fermentation medium, and utilities like water, fuel and power. Another requirement will be facility for treating and disposing the effluents.

A cluster for manuf)acture of fermentation products with commitment for making the infrastructure available can attract investment. This will be a large cluster (200 to 500 acres) that can attract investment in thousands of crores. The preferred location will be closer to Godavari river in Adilabad, Karimnagar or Khammam. Alternately this can be a part of the Pharma city. The revenue to the exchequer will be high.

82. Handicrafts, toys and gifts

Our country has a rich tradition of artistic hand made products. These traditional crafts have been kept alive by artisans in different parts of the country. Governments have also supported these crafts. We have a number of handicrafts clusters. Some of these recognized as mega clusters. Some of the crafts are:

Wood carvings

Dress making with embroidery

Dress making with tie and dye style cloth

Weaving of different styles

Brass and bronze metal work

Silver ware

Terracotta works

Mirror work

Handicrafts are preferred items for gifting. Technology has also added many gadgets and gizmos to the gifts list. Special editions of everyday use products have become popular gifts to be given on special occasions. On line trade in gift articles has grown at double digit figures over the last few years.

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Telangana has its own handicrafts clusters. There is need to develop the market for the products from these clusters and develop the product mix itself by exposing the artisans to new tools, designs.

It is proposed that a new creative cluster may be developed in one of the district headquarters. The cluster can have some traditional handicraft making units and some units making/ assembling gadgets. Toy production can also be taken up in the cluster

The concept

Construct two or three multistory buildings that can house about three to four hundred micro enterprises. These enterprises will mainly concentrate on marketing the products by out sourcing the production to smaller clusters. Apart from handicraft items, other gift articles including toys are to be the products.

Support this with

1. A design center that will have tie up with national and International design institutes

2. A permanent exhibition center

3. Common facility for packing and packing material production

4. e center for helping in developing on line presence and on line trading

Make this center a tourist attraction

83. Herbal cosmetics cluster

Herbal cosmetics are green products (natural products). They have been in use for centuries.

Interest in these products is revived now as the ill effects of synthetic products are becoming evident.

Cosmetics and personal care industry is one of the fastest growing sectors in India with growth rate of above 20 %. This will continue for many more years. This industry is dominated by multinational companies who cater to the upper and middle class. The quality of the products from multinationals is supported by years of research and standardization. They are mass produced, supported by expensive promotion and sold at premium prices. There is no need for paying prices that hurt for many of the products. Some of the skin care and hair care products can be made from locally available materials.

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TEMPO is of the view that we can have one unit producing cosmetic and personal care products for each district catering to local needs.

Some of the products that can be taken up for manufacture/ repacking and sale are listed below. This is not an exhaustive list. Many products can be added based on market needs.

A. Powders for face packs

Either make from the herb or repack powders of known ingredients used in face packs. These include turmeric powder, sandalwood powder, lemon and orange peel powder.

B. Herbal shampoo

Central institute of medicinal and aromatic plants (CIMAP) is offering formulation technology for herbal shampoo with anti-dandruff properties.

C, MultaniMitti (fuller’s earth) for face packs

Bath salts: Bath salts containing magnesium sulfate and some essential oils will provide smoothness and relaxation. These can be made easily and at low cost

D. Creams with sunscreens

Creams, gels and lotions containing products like Aloe Vera are available over the internet. Some of them can be made in a small manufacturing facility having mixing equipment and tube/ jar filling machinery.

E. Henna based hair dye

Henna is one of the oldest known hair dye plant in the world and widely used as a hair dye. Natural henna leaves are dried and pulverized to a fine powder. This when mixed with an alkaline material like soap powder and water produces the hair dye. Henna also acts as hair conditioner (the cuticle is smoothened by its sealing action), hair growth promoter, for hair brightening Henna is used in most of the permanent hair dye formulations available in the market. This technology is available from a national research institute.

F. Rose water, Jasmine water etc

G. Coconut oil with flower extracts

Coconut oil mixed with essential oils/ herbal extracts: This aids hair growth and gives a soothing effect.

There are two important aspects of this project

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1. Quality control: It is necessary that well proven formulations should only be marketed. Strict quality control has to be maintained on the materials used. Standardization of the materials is to be practiced to maintain uniform quality.

Obtaining the knowhow from institutions having good testing facilities is necessary. Arrangements should be made for testing critical raw materials.

2. The second critical aspect is marketing. High cost promotion is ruled out. Selling through large retail outlets is also costly. Most economical marketing method is to recruit energetic and enterprising ladies in important neighborhood as stockiest and retailer. Localized promotion can then be taken up. Tie up with beauty parlors and fancy stores catering to female needs are other options. Once stockists are in place internet marketing can be tried in larger cities.

TEMPO is recommending this project because of high growth potential and good margins. Developing one good formulation can bring in windfall profits. This can be promoted as a cluster with women self groups making individual products and sharing market outlets.

84. Packing materials cluster

As we move deeper into consumption economy, the demand for packing material will be increasing at a rapid rate. The main drivers for growth of packing material are processed food, readymade garments, electronic products, gadgets and toys. There aare good prospects for developing a cluster of packaging material manufacturing units.

Packaging product scene is dominated by plastics, followed by paper and paper board products.

Potential units for the cluster

Polymer products

1. PET pre forms for bottles

2. Multi layer polymer films

3. Multilayer polymer sheets for applications like thermoforming

4, Injection molding units for large size containers

5. Waste plastic recycling units

6. Plastic compounding units for compounding recycled plastic with virgin material

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7. Packing foam, insulation foam and bubble film packing manufacturing

8. Polystyrene foam moldings for packing electronic and fragile products

9. Metallized films and flexible packaging material for pouches etc

(products for insulation of refrigeration and air conditioning pipes/ ducts (cross linked polyethylene foam sheets) can also be made in the cluster)

Metallic items

Aluminium foil

Aluminium film for blister packing

Paper products

Folding box board

Corrugated box board of different thickness

Coated paper and coated boards

Glass

Bottles production

Most of the units mentioned above are capital intensive. To be competitive, high capacity machines with latest technology (mainly using recycled materials) has to be installed. The ideal way is to encourage successful entrepreneurs in existing plastic processing parks to take up expansion work in the new cluster. There are a large number of listed companies in this field. Attracting a few to the cluster will also help. The cluster can be planned in one of the highway corridors connecting Hyderabad. This will bring in good revenue to the exchequer.

85. Personal Hygiene Products cluster Disposable products like, paper napkins, disposable baby diapers, feminine hygiene products (sanitary napkins), adult diapers and different types of pads are part of modern day living. These products are used for convenience and personal hygiene. The global market for disposable diapers is estimated at $ 20 billion annually. The diaper market is mature in developed areas such as North America, Western Europe and Japan, while market

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has started developing in middle and south East Asia. China is emerging as a major market (market size estimated at US $ 3 billion). The Indian market for baby diapers is around Rs. 100 crore per annum. Rapid urbanization is likely to result in very fast growth of this market. Even though the sanitary napkin market is concentrated in urban areas and middle class and above households, awareness is catching up fast and market is growing at double digit rate. The factor constraining the growth of these products is price. The material costs are high and the cost of setting up the projects is also high. This has made domestic production un competitive. It is necessary that we innovate the materials and processes to bring down the costs. Recently a low cost sanitary napkin production process and machine is developed by an entrepreneur in Tamilnadu (Jayaashree industries, Coimbatore). Sanitary napkins of acceptable quality are being produced at low price and this machine is becoming popular.

PROPOSAL To produce these at economic prices TEMPO suggests a cluster approach for the main material production followed by decentralized finishing, packing and marketing set up at different locations. This can provide low cost products and employment at rural level. A Sanitary napkin consists of an absorbent pad prepared from fluffy pulp coated with super absorbent polymer (SAP). The pad is wrapped in a nonwoven fabric and heat sealed on to a waterproof fabric. It weighs about 10 grams. Disposable diaper is made of an absorbent pad sandwiched between two sheets of fabric. The function of the pad is to absorb and retain body fluids, and the non-woven fabric gives the diaper a comfortable shape and helps to prevent leakage. The diapers are made by a multi-step process in which first the absorbent pad is made which is then attached to a permeable top sheetand impermeable bottom sheet. Other accessories are then sealed together by application of heat or ultrasonic sealing. The average diaper weighs about 45 grams. It is comprised of 45% of fluff pulp, 25% super absorbent polymer, 20 to 25% polypropylene/polyethylene fiber in nonwoven form, 5% adhesive and about 1% elastic. In either case the main cost contributor is the SAP coated fluffy pulp. To make a real impact on cost reduction this material is to be made available at economic price. Fluffy pulp is made from long fiber pulp (imported in the form of dried pulp rolls which is the raw material for high quality paper). There is special equipment available for producing fluffy pulp from commodity paper pulp. The fluffy pulp is then coated with SAP. This reduces the need for using higher quantity of pulp. The next cost reduction is possible in the nonwoven fabric cost. The non-wovens used are permeable (top) and impermeable (bottom) types. For these materials optimum production capacities have to be chosen with the best possible technologies for cost reduction. In case of baby diapers, automated system for cutting the pads and fabric to desired size appears to be economical. Separate units for this operation can be set up once again using the optimum capacities. The final assembly, sterilization, packing can be done at decentralized locations using equipment from Jayaashree industries for napkins and Chinese machinery for diapers.

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This approach can result in availability of diaper at less than five rupees and napkin at less than two rupees to consumer.

The Chinese have come up with reusable diapers. Entrepreneurs can research this.

86. Toilet bowl and floor cleaners

Household cleaners are some of the most widely purchased consumer products. The class of products isextremely diverse, ranging from general purpose cleaners, some of which are advertised for virtually anycleaning job to specialized cleaners, such as glass cleaners or tub and tilecleaners. The ingredients found in this class of products are also diverse, ranging from simple soap toproprietary formulations of petrochemical surfactants.

Now a days there is wide spread awareness of hygiene and cleanliness. Swachha Bharat campaign is resulting in every family constructing a toilet. With this demand for cleaners particularly for toilet and floor cleaners is going to increase. Demand will be created in rural areas also. This is a good opportunity for micro enterprises to come up in small towns to manufacture and sell household cleaners.

They are simple to produce. The ingredients are available from chemical producers. They have to be mixed in right proportions and packed in suitable plastic containers. Some formulations are given below for understanding.

Acid toilet bowl cleaner

Hydrochloric acid – 10%

Nonyl phenol polyethylene glycol ethers – 3%

Cetyl dimethyl benzyl ammonium chloride – 0.75%

Sodium silicate – 10%

Water – Remaining

Hypochlorite based toilet bowl cleaners (like Domex)

Sodium hypochlorite – 12.5%

Sodium hydroxide – 1%

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Sodium silicate – 3%

Surfactant – 3 %

Water – remaining

Formula 2 (like Domex)

Sodium lauryl sarcosinate – 2%

C12 to C-18 alkyl dimethyl amine oxide sulfonate -10%

(reduce this by adding sodium lauryl ether sulphate)

Sodium hydroxide – 1%

Sodium silicate – 3%

Sodium hypochlorite – 5%

Water - Remaining

The actual mixture will not cost more than Rs 20 -25 per liter. There will be good margin.

Entrepreneurs who are confident of selling about 100 liters per day can consider getting into this business. There are number of formulators in Hyderabad offering the finished product. One can test some of these and make an arrangement with a good formulator to act as their agent. This will be least risky way of getting into this business. Once a foothold is obtained in the market you can venture on your own. Other products can be added to increase the turnover and profit in course of time.

A chemical formulation cluster for cleaners, disinfectants, different polishes may be planned adjacent to or as part of the pharma city.

87. Foam products

Plastics foam, sometimes called expandable plastics, are versatile materials that werefirst used in the post-World War II plastics boom. Plastic foam products are used both as original and replacement materials in industries. Foam products emerge out of a unique chemical process. Foamed plastic is an expanded material with a distinct cellular structure that can be either rigid or flexible. Rigid foam consists of hollow spheres attached together, while flexible foam has its cells connected, thus giving it a spongy structure. Polystyrene

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and polyurethane are used for rigid foams and vinyls and cellulose acetate. Linear polyurethanes have been traditionally used in flexible foams. By 1969, flexible urethane dominated the market with polystyrene running second, rigid urethane third, and polyvinyl chloride fourth.

Foam production processes involve a variety of methods,and the output takes the form of slabs, blocks, boards, sheets, molded shapes, and extruded insulation. Foam can also be produced onsite for building insulation and cushioning applications. Extrusion and injection molding are used to produce most grades of foam. More than half of foamed plastic is polyurethane, and the rest consists of expandable polystyrene and vinyl, phenolic, epoxy, urea, and silicone.

End uses

Foot wear: flip flops, heels

Packing: fruits, vegetables, electronic parts

Building materials: sandwich panels for doors, partitions and panels for walls

Automotive: Rigid foams in cars for dash board, door paneling, seats, flexible foam for seats.

Domestic: Mattress, cushions

Industrial: Insulation, packing, tool boxes from rigid foam

A cluster of small units manufacturing foam products can be developed adjacent to plastic processing unit clusters.

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88. Medical disposable items cluster

Hygiene is first priority in hospitals and diagnosticlaboratories. This has resulted in development of use and throw products to avoid contamination and infection. Many of the products used in general surgery, anaesthesia, urology, gastroenterology,paediatrics, gynaecology, transfusion/blood management, surgical wear and specimen collection are now disposable items.

Hyderabad is a major centre for health care with many corporate hospitals. The market for medical disposables is huge and it is steadily growing.

Most common items

Disposable needles

Disposable syringes

Catheters

Medical grade tubing

IV sets, cannula,

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Disposable bags for blood, IV fluid, urine

Disposable gloves, shoe covers, caps, face masks, nose masks and aprons

Specimen collection tubes, bottles, vials

Disposable electrodes

It would be feasible to promote a cluster for medical disposable items in the suburbs of Hyderabad. There are some products like nose masks and disposable wear that have market in other areas like biotech and pharmaceutical industry. More products can be added after researching the market.

89. Plastic products in Agriculture

“Seed trays, drip tape, mulch film, water pipes, hoop house covers, twine, hose,fertilizer bags are some of the plastic items being used in agriculture/ horticulture.

One product that can be considered for production in small scale is plastic stakesproduced from waste plastic and suitable cellulose fillers. The advantages of plastic stakes are:

 Resistant to water damage, will not rot or splinter  Robust , strong and will not bend  All recycled plastic products can be nailed, screwed, cut and drilled  Unlike treated wood no poisonous chemicals will leach into your soil  Manufactured from post-consumer waste

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The competing product is bamboo stake. While this is a less expensive, its life is limited. Chemically treated bamboo stakes have better life but cause pollution.

Tempo recommends that entrepreneurs may consider entering this line of manufacture. Initially trading in plastic products used in agriculture may be started. This can be taken up near places where horticulture activity is high.

First carry out a market survey of various products being used in the horticulture farms in production of fruits and vegetables. Find out the sources of supply. Start a distribution company. Manufacture of some plastic items using hand molding machines can be started.

This activity can be started with investment of two three lakhs.

Drip irrigation accessories are another area where mass market exists. Small units can be set up to cater to the replacement market.

A cluster for plastic products for horticulture use can be set up in one of the districts having a large area under horticulture. The aim should be install machinery for injection molding, extrusion blow moulding in small capacities. Value addition should be in assembly and trimming the products for use in the horticulture sector.

90. Embroidery cluster

This cluster is to be planned in a city. Possibility of training women workers, providing them with the machinery, designs and getting job work done can be explored by a mother unit that will concentrate on marketing.

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This will be mainly a part time work for the artisans. The income generated will be for augmenting the family income

Threads used

Synthetics, silk and wool

Vibrant colors used

Motifs

Flora and fauna, animal and human figures, natural objects and imagery

Base materials

Kids wear. Gents wear and ladies wear. Lions share goes to dresses of girls and young women

Bed sheets, pillow covers, table cloth and curtains

Bags, hand kerchiefs

91. Kids wear

The domestic textile and apparel industry in India is estimated to reach US$ 141 billion by 2021 from US$ 67 billion in 2014. Increased penetration of organised retail, favourable demographics, and rising income levels are likely to drive demand for textiles..

The readymade garments market is estimated at $45 billion, of which the domestic market is around $27 billion, while exports stand at $18 billion. The Indian branded apparel industry is estimated to be $10 billion in size and growing at 10-12% per annum.

There are several Readymade Garments centres in India, of which the major ones are Mumbai, Coimbatore and Tirupur, Ahmedabad, Ludhiana, Bangalore, Indore. In India RMG industry is fragmented and pre-dominantly in the small/scale sector. Therefore, the sector is low investment and highly labour-intensive industry. This industry is environment friendly as it is least polluting and it could provide employment to the rural population, as this sector does not need sophisticated skill sets. The RMG industry contributes around 8 per cent of India’s exports, 7 per cent of industrial output and is the largest employment generator after agriculture. It contributes about 14% to the industrial production and about 4% to the GDP. It has immense

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potential for employment generation particularly in the rural and remote areas of the country.

Kids wear market The kidswear market is somewhat skewed towards boyswear which by itself is a USD 4.3 billion market, as compared to the USD 4.0 billion-worth girlswear market. But with the increase in spending on the girl child, the girlswear market is expected to catch up with the boyswear market in the near future. It is expected that the girlswear market will grow at a CAGR of 11% over the next decade, while the boyswear market will grow at 10%. Uniforms and T-shirts/Shirts are the two major categories within the boyswear market. Together, they contribute 57% of the total market. However, Denims and T-shirts are the high growth categories within this segment and are expected to register CAGRs of 15% and 11%, respectively, over the next decade.

Considering the potential growth, TEMPO is suggesting entrepreneurs to set up micro units that will produce ready to wear garments from hosiery cloth for grown ups (T shirts, night wear, uppers for ladies and different kinds of children garments. Every town of 50000 population is a potential location. The entrepreneur can produce the RMG and market from the same location.

Economically priced clothing assuring good quality are the key factors for success.

The unit can be located in rented premises.

The machines required are:

Sewing m/c power operated (4) Embroidery m/c (2) Overlock stitching m/c (2)Measuring instruments like set square triangles measuring tape, large, small scissors(5) Cutting table stools etc. ((6)Washing m/c (7) Hydro extractor (8) Steam Press potable type (9) Wooden racks (10) in

Cost of machinery: Rs. 10 lakhs

The entrepreneur can undergo training at some of the training centers in Hyderabad. They can have a tie up with institutions like NIFT for getting new designs and consultancy on sourcing materials at economic price.

A cluster of units for manufacture of hosiery products for kids and grownups can be a part of the textile city under planning.

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92. Knitted cloth and Dyeing units cluster

(This profile is based on information collected from MSME profiles)

Knitting is one of the fabric manufacturing techniques in which yarn is converted into loops and loops are intermeshed to form fabric. Cotton knitted fabric is used as raw material for the manufacture of undergarments and knitwear. Generally, hosiery yarn of count 20s-40s is being used for the manufacture of knitted fabric. Since, the machinery required to set up this industry are indigenously available, this industry can be easily set up with low investment and can be run by new entrepreneurs.

Market

The main buyers of knitted fabrics are garment manufacturing units and processing units. Use of knit wear in dresses for children and products like T- shirts is growing. Apart from the domestic market export potential is also very large. Tirpur in Tamilnadu is the hub of knitwear manufacture in India. Exports in the year 2014-15 are estimated at Rs. 20000 crores.

Proposal

It is recommended that a cluster of units for knitted cloth and dyeing the knitted cloth may be set up at a suitable location in Telangana for supply to garment manufacturing units.

Knitting units

Process of Manufacture: Cotton yarn of particular count, purchased from spinning mills or yarn dealers on cones, are loaded into the machine and threaded through eyelets and tensioning device, stop motion and finally to the needle. While cloth is knitted by running the machine, care must be taken to see any breakages in the yarn while knitting and breakage must be attended to. After sufficient length of roll is knitted, the knitted cloth is cut and taken away from the machine. Details regarding yarn count, weight of cloth rolls, date of packing, manufacturers etc. are marked on each cloth rolls and sent to the customers.

Capacity of each unit: Can be 1000 to 2000 kg per day

Motive Power:Totally 50 HP power is required to run the industry (1000 kg per day unit) at full capacity, this is proposed to be obtained from State Electricity Board.

Project cost (1000 Kg per day unit)

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(i) Land and Building Land area 1000 Sq. Mtr @ Rs. 3500 per meter Rs.35,00,000 Boundry wall and Gates Rs. 5,00,000 Covered area for processing yarn into knitted fabric Rs. 28,00,000 350 Sq. mtr @ Rs. 8000 per Sq. Mtr Covered Area for utility plants like bore well, DG Set, electrical room, maintenance room, store etc. Rs. 22,50,000 250 Sq. mtr.@ Rs. 9000/sq.mtr Total Civil Cost (Land and building) Rs. 88,00,000

Sl. Rate Amount (In Description No. No. (In Rs.) Rs.) Sinker body knitting machine 22 1. gauge 17" dia with needles and all 8 75,000 6,00,000 accessories Sinker body knitting machine 18 2. gauge 18" dia with needles and all 8 100,000 8,00,000 accessories Sinker body knitting machine 24 3. gauge 15" dia with needles and all 8 80,000 6,40,000 accessories Electrical motor for knitting 4. 24 10,000 2,40,000 machines 5. Electronic weighing balance 1 75,000 75,000 6. D.G. Set, Bore well, electricals LS 50,000 10, 00,000 Total 33,55,000 (iii) Other Fixed Assets (a) Erection and installation 10% of plant and m/c 3,36,000 (b) Office furniture 5,00,000 (c) Pre-operative expenses 2,00,000 Total 10,36,000 Total Fixed Capital 1,31,91,000

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Bleaching and dyeing unit

The knitted fabric to be bleached is thoroughly wet in a soap solution of 2% and piled in kier boiling pan containing 1.5% caustic soda, 2% soda ash and 1% lisapol etc. and allowed to boil for 6-8 hours. The cloth is washed well and taken to SS winches for bleaching using 2% bleaching powder and then washed thoroughly. This bleached cloth is scoured using hydrochloric acid of 1.5% concentration. After sometime, cloth is washed thoroughly to neutralise the traces of acid. In case of only bleaching the cloth is treated with optical whitening agent, thereafter, it is hydro-extracted, dried and calendered as final operations.

In case of dyeing, about 15-20% salts, 2% brightol C paste, 2-4% dyes as per shade are mixed and fabric is treated with the solution in winches. The cloth is allowed to run for several times in order to maintain uniform shade, thereafter, washed, hydro- extracted, dried and calendered.

Capacity of each unit: Can be 1500 kg per day

Motive Power

Totally 250 HP power is required to run the industry (3000 kg per day unit) at full capacity, this is proposed to be obtained from State Electricity Board.

Project cost

(i) Land and Building (i) Land 4000 Mtrs. @ Rs. 3000 per Sq. Mtr Rs.1,20,00,000 Boundary wall and gates Rs. 5,00,000 Factory shed 400 Sq. Mtr, @ Rs. 6000 / Sq. Mtr Rs. 24,00,000 Raw Material & finished goods storage 500 Sq. Rs. 30,00,000 Mtr@ Rs. 6000 / Sq. mtr. Office Building 300 Sq. Mtr @ 750 / Sq. Mtr Rs. 22,50,000 Workers sitting hall 500 Sq.Mtr @ Rs.6000/Mtr Rs. 30,00,000 Rs.1,18.00,000 Utility plants area e.g., bore well, raw water storage, boiler, generator and effluent treatment Rs. 12,00,000 plant 200 Sq. Mtr @ Rs. 6000/Sq. Mtr Total Rs 2,43,00,000

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Sl. Description No. Rate (Rs.) Amount (Rs.) No. 1. SS Winch m/c of 6-4× 8×6 200kg. 2 4,00,000 8,00,000 SS Winch m/c 6-4'× 6×6 size 2. 6 2,00,000 12,00,000 150kg. 3. MS Kier wall thick 1/4' bottom 8' 4 1,50,000 6,00,000 Steam calendaring m/c roller 4. 2 3,00,000 6,00,000 sizes 51/21 Hydro-extractor 40-45 kg 5. 4 2,50,000 10,00,000 capacity 4 cylinder drier with motor and 6. 2 7,00,000 14,00,000 gear box 7. S.S. Conveyors with ball bearing 4 100,000 4,00,000 Baby boiler with storage tank 8. 1 16,00,000 16,00,000 chimney, water softening plant Water softening plant (cap. 9. 6kl/hr), with storage tank pumps 1 14,00,000 14,00,000 and S.S. piping 10. Effuent treatment plant 1 20,00,000 20,00,000 Steam pipeline and other 11. LS 6,00,000 600,000 accessories Deep tube well with submersible 12. pump with storage tank, pumping 1 5,00,00 5,00,000 and distribution system Mini transport vehicle (3 13. 2 3,00,000 6,00,000 Wheelers) 14. Fire extinguisher 5 kg capacity 4 20,000 80,000 15. Testing equipment LS 4,00,000 Computer colour matching 16. 1 50,00,000 50,00,000 equipment (optional) Total 1,81,80,000

Suggested configuration for the cluster

Products No of units Production Investment Revenue Profit

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capacity in each unit from each margin Kg per day Rs. lakhs unit Rs. lakhs/ yr Knitting units 20 1000 150 750 10 Bleaching 6 3000 450 300.00 70 and Dyeing (job work) units Effluent Common 1000 treatment facility unit

93. Mosquito screens and Window blinds

Mosquito menace in our country is wide spread. All new houses being constructed are invariably planning to fix mosquito and insect nets for windows and doors opening outside. Manufacturing mosquito nets and custom production of nets suiting individual requirements is a good business opportunity in all major towns.

Fiberglass mesh has become very popular as mosquito and insect nets. These are little expensive. Even Nylon nets can be used for this application if a rigid frame is used.

TECHNOLOGY : The production process of nets usually starts with twisting of yarn and then the twisted yarn passes to the knitting machine. After the net is produced, it shall be cut according to a specific design.

For a micro enterprise TEMPO suggests bought out net material and business focus on making the frames and fixing. The frames can be made of PVC (buy suitable PVC extruded profiles and cut to size) or wood. Alternative is to sew “Velcro” or magnetic tapes. If “Velcro” or magnetic tapes are used, the corresponding retainer has to be stapled or glued to the window frame.

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This is a simple activity. It can be started from home with investment of Rs. 1 to 2 lakhs. One or two industrial sewing machines, cutting tools, staplers are the equipment needed.

Another product group becoming popular in new homes is blinds for windows. There aredifferent kinds of window blinds which use a variety of control systems. A typical window blind ismade up of several long horizontal or vertical slats of wood,plastic or metal which are held together by cords that run through the blind slats. Window blinds canbe maneuvered with either a manual or remote control by rotating them from an open position, withslats spaced out, to a closed position. Commercial establishments are already using blinds One cluster for mosquito and insect nets and window blinds can be planned near a plastic processing cluster.

94. Readymade garments cluster

The overall demand of clothing is going up in proportion to the increase innumber of middle and upper middle class. Large size garment shops are being set up in almost everytown. Many brands are in vogue including international brands. However Indian consumers are still very price conscious and value for money is sought in terms of quality and attractiveness rather than the brand name. Thus there is a very large market for readymade garments of good quality at moderate prices.

It is suggested that a cluster of readymade garment units may be promoted in the proposed textile city near Warangal. Investment in a unit that can produce readymade clothes competitively is estimated at Rs 100 lakhs. There are companies that are willing to provide job work for well managed units. It is also possible to attract an experienced player to set up a mother unit and a build brand identified with Telangana. A cluster of 30 – 40 units at one place can generate employment on large scale. We already have one cluster near Hyderabad. Incentives may be provided to some of the successful units to open second units in the textile city.

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Typical readymade garment making unit will have the following facilities. Building: covered area of 3000 sft Machinery

Description Qty Single needle lock stitch machine with motor 30 Double needle lock stitching machine with motor and 2 all accessories Flat lock stitching machine with motor and 2 accessories Cloth cutting machine with motor 1 Button hole stitching machine 1 Button stitching machine 1 Embroidery machine with motor and all accessories 1 Washing machine 2 Hydro extractor 1 dryer 1 Steam Press iron Tools and other misc. items set

Investment in machinery: 40 lakhs

Power connection: 30 KW

Water: 20000 liters per day

Workers: 50 nos

Turn over: Rs 500 lakhs (gross value of output)

Profit margin (after all expenses): 5%

Innovations proposed and possibilities: Create own brand

95. Technical Textiles

Technical textiles are the emerging area for investment in India. The potential of technical textile in India is still untapped. Technical textiles represent a multi- disciplinary field with numerous end use applications. The production of different items of technical textile industry has been slowly but steadily increasing in the country.

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Source: OFFICE OF THE TEXTILE COMMISSIONER

Estimated Market size in 2017-18 (Rs crore)

1 Agrotech 1,614

2 Meditech 5,142

3 Mobiltech 11,433

4 Packtech 48,318

5 Sportech 7,111

6 Buildtech 4587

7 Clothtech 8138

8 Hometech 12145

9 Protech 3,139

10 Geotech 1,275

11 Oekotech 193

11 Indutech 13,127

Total Technical Textile market 1,16,217

Agri tech: Mulch mats, shade nets, fishing nets, crop covers etc.

Meditech: surgical dressings, disposables, pads

Mobil tech: Air bags, belts, seat upholstery, floor carpets

Packtech:  FIBC (Flexible Intermediate Bulk Container), woven sacks, nonwoven shopping bags,

Buildtech:  Awning and canopies, insect proof nets, Tarpaulins,  Hoarding and signage

Indutech: filter cloth, belts, ribbons, ropes,

Nonwovens are one area where new market opportunities are opening up. There are many niche areas for value addition. Investment in individual projects will vary from Rs 20 lakhs to Rs 50 crores.

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The projects are capital and marketing intensive. Entrepreneurs having marketing experience and adequate resources can make detailed study. Technical textile association is a good consulting source.

A cluster of these units can be part of the Textile city under planning.

96. Upholstery and bed linen

Furnishings and upholstery have become major items in interior design. A good bed cover matching with colour of the room and pillow cover is very important as a part of interior bed room. Similarly the window curtains and upholstery used for sofa and chair cushions is important in the décor of the house. These reflect taste and status of the owner. So the demand of textile products such as bed cover and pillow cover and curtain material is increasing in the domestic as well export market.

A micro enterprise can produce these items. The base cloth material is produced by large mills. These can be purchased at whole sale prices and products for retail market stitched out. Value addition by embroidery work will add to the profit margin.

Qty Nos Net income Rs. Capacity proposed: per year Item Bed sheets with pillow cases 3000 units 120000 Window and door curtains 3000 units 120000 Sofa seat covers Embroidery work 60000

The bed covers can be ready made products sold as made. The curtains and upholstery are to be made to order. Small unit can be set up in rented premises with following machinery. Investment will be below Rs. 5 lakhs.

Machinery

Description Qty Pedal operated sewing machine 4 Double needle stitching machine with motor and all 1 accessories Flat lock stitching machine with motor and 1 accessories Embroidery machine with motor and all accessories 1

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Tools and other misc. items set

Profitability will depend on getting the base material on credit and marketing the finished product. Other job works can be taken up based on free time available. A cluster of these units can be planned in the proposed textile city.

97. Bamboo composite panels

Bamboo is one of the fast growing wood species. Structural Bamboo Composites are an innovative solution serving as construction material for the 21st century. Bamboo composites have been manufactured for years. They have not become commercial success because of inadequate study. with efficient raw material processing, use of right type machines and resins the economics have been improved. Now many products are being manufactured at competitive prices.

Bamboo Mat Based Products Bamboo Mat Board [BMB], Bamboo Mat Veneer Composites [BMVC] and Bamboo Mat Corrugated Sheet [BMCS] Bamboo Strip Based Products Bamboo Wood [Laminates], Bamboo Flooring Tiles and High Density Transport Flooring Bamboo in round/split/composite form

Imported timber is presently used for the development of compregs and shuttering grade panels . The compreg requirement by Indian Railways alone is increasing many folds as thrust now is on the use of high strength materials in coach building. Currently for the raw materials, the industries are dependent on imported timbers and also the product is very expensive. IPIRTI has developed compregs and shuttering grade panels using bamboo mat as a raw material in place of veneers.

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(source: Indian plywood industries research and training institute IPIRTI, Bengaluru) Bamboo Based Housing System and Bamboo Match Splint At present research is being continued to develop Bamboo Mat High Density Panel (Compregs), Bamboo Mat Moulded Skin Board (BMMSB),Bamboo Mat Ridge Cap (BMRCS), Bamboo flattened board and Bamboo laminated lumber

Guided by dwindling wood supply in India and potential supply of bamboo as an alternate material, research had been strengthened in nineteen eighties to use bamboo as non-wood renewable fibre to substitute wood in several uses. It was observed that bamboo attains full growth in one year thus can be grown as a part of agroforestry. Also bamboo attains full maturity in two years when some of its physical mechanical properties are superior to wood available from most fast growing plantation species. This has evolved keen interest in bamboo to undertake theoretical and applied research on bamboo based products for use in housing, furniture, packaging, transport sectors and others.

This will be a good project for bamboo producing districts like part of Adilabad, Warangal and Khammam. This can be discussed with ITDA authorities. Investment will range from 50 lakhs to 300 lakhs for different products. First consult IPIRTI Benguluru, study different end products, make market assessment and then contact ITDA with specific proposal.

A cluster of units making different products from bamboo will be ideal.

98. Finger jointed wood panels

A finger joint is a woodworking joint made by cutting a set of complementary rectangular cuts in two pieces of wood. The strength of a finger joint comes from the long-grain to long- grain contact between the fingers providing a solid gluing surface.

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In our country large girth logs of species like teak are not available in required quantities. To meet the increasing demand processing and utilization ofof plantation timbers like rubber wood and poplar wood is the only alternative.

These plantation species does not have the strength of teak and cannot be used as long planks. This problem has been solved by finger jointing of short sections. This has also helped in efficient use of smaller sections and defective sections that would have gone waste.

It was found that finger jointed timbers from plantation grown species such as Eucalyptus, Silver oak and Rubber wood give finger joint efficiency in the range of 60 - 70% of the original defect free wood of the species which is satisfactory for many end uses.. In addition the finger jointed wood is found to have greater dimensional stability.

End uses: This is a proven technology. Finger jointed timber is well accepted for following end uses.

Flooring panels, Panels for doors / window shutters, Wall Paneling, Ceiling, Table Top, Wardrobe Shutters, Cabinet Shutters, Kitchen Shutters and Furniture

Market Potential: One estimate indicates that demand for timber is likely to grow from 60 million cubic meters in 2005 to 150 million cubic meters in 2020. The supply of wood is projected to increase from 30 million cubic meters in 2000 to 60 million cubic meters in 2020. This is a huge gap, offering many opportunities to entrepreneurs. Procuring plantation

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wood at economical price, processing and marketing finger jointed wood is one such opportunity.

Process: Production of finger jointed timber involves the following stages

1. Selection and Preparation of Material 2. Seasoning /curing wood 3. Forming Finger-Joint Profile 4. Application of Adhesives 5. Assembly of Joints 6. Curing the Adhesive

Adhesives most commonly used in finger-jointing wood products are Phenol formaldehyde, urea formaldehyde, phenol-resorcinol, melamine-urea, and polyvinyl adhesives (PVAs).

Technology availability: Proven technology and good quality plant and machinery are available within the country. TEMPO recommends syndication of this technology so that new units can be set up with adequate provisions for introducing innovations on the raw material front and product front.

TEMPO is recommending this to entrepreneurs mainly based on the market potential. The second favorable factor is availability of technology. Indian made finger jointing machine is available for 15 to 20 lakhs. Tempo recommends setting up a medium sized unit with captive resin manufacture. We have estimated the investment requirement at about Rs. 300 Lakhs. This means the entrepreneur has to raise about Rs. 100 lakhs from his side. (This investment estimate is to be confirmed through detailed costing)

One cluster of finger jointed wood panel manufacturing units may be promoted in a district where social forestry is being practiced. Leftovers from timber mills can be procured for the units. One pr two resin manufacturing units can also come up in the cluster.

99. Furniture manufacture cluster

 World trade in wood furniture is estimated at $ 10 billion (2010).

• Furniture market in India is estimated at about Rs.100000 crores. Share of Wooden furniture in this is about 50%. This market is growing in double digits.

• CKD kits of cabinets, modular kitchens, living room and bed room furniture can be made anywhere.

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The Chinese dominate world trade in wooden furniture. They have developed large clusters of furniture manufacture. In Telangana we can develop two or three wood based furniture clusters.

We have good expertise in social forestry. Different type wood and bamboo is available, can be grown and bought from neighboring states.

This cluster can have a mix of modern and traditional machines. Engineered wood like finger jointed wood/ sandwich panels can be manufactured.

The change factors that will transform the traditional family based carpentry to manufacture of value added products are

Access to market

• Tie-up with a marketing firm is the starting point.

Availability of Raw Material at economic price

• Simplify raw material procurement and transport system.

Skill development

Increase productivity

• There are number of Institutions providing training. Entrepreneurs can get proper orientation here. Train on new generation machines

Cater to changing trends

• Tie-up with a design institute can also be considered

Plant and machinery: Machinery used in modern furniture manufacturing units is listed below. The Operations can be broken down in to individually viable units to reduce investment per unit.

1. Material Preparation Section

Precision Band Saw 5 HP Longitudinal cut mainly

Rip Saw 8.5HP straight line operations

Multiple Rip Saw 52.25 HP multiple straight line ripping

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2. Fine Working Section

Hand Jointer 6 HP

Auto. Single Planer 5 HP

Single Spindle Shaper 5 HP

Double Side Planer 20 H

4-Side Molding M/ C 58.5 HP

Double End Tenoner 27 HP

3. Lumber Assembly Section

Finger Shaper 13 HP

Finger Assembler 3 HP

Pneumatic Semi-Auto. Clamp Carrier 1 HP

4. Boring Section

Vertical Boring M/C 10 HP

Horizontal Boring M/C 4 HP

Multi-spindle Boring M/C 6 HP

Hollow Chisel Mortiser 2 HP

Triangular Tenoner 2 HP

5. Sanding Section

Wide Belt Sander 56 HP

Wide Belt Sander 24 HP

Vertical Vibrating sander 7 HP

Double Side Sponge Drum Sander 2 HP

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6. Painting Section

Spray Water Booth 6 HP

Paint Stirring Pressure Tank

Paint Spraying Guns

7. Other Equipment Section

Profile Tool Grinder 1.2 HP

Tool Grinding M/C 3.2 HP

Dust Collector 20 HP

Dust Collector 15 HP

Dust Collector 12 HP

Air Compressor 15 HP

Air Compressor 10 HP

By breaking down the operations these machinery can be accommodated in about 20 to 25 units. A cluster that accounts for two large manufacturing units is given in the table.

S.NO Unit Capacity Number of units Investment per unit. Rs. lakhs

1 Primary timber treatment 50000 cu.ft 5 50.00 2 Component makers 10000 cu.ft 20 30.00 3 Furniture makers 10000 pieces 20 30.00 4 Misc. 10 20.00

Total investment in the cluster would be about Rs. 20 crores.

Annual turnover: Rs. 50 crores

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100. Modular cabinet making carpentry unit

A cabinet may be built-in or free-standing. A built-in cabinet is usually custom made for aparticular situation and it is fixed into position, on a floor, against a wall, or framed in an opening. For example, modern kitchens are examples of built-in cabinetry. Free-standing cabinets are more commonly available as off-the-shelf items and can be moved from place to place if required. Cabinets may be wall hung or suspended from the ceiling.

Modular unit implies that two or more such units can be added up to make a single unit to meet a particular need. Modular cabinets and ward robes are being widely used now days. These units save time and labor and are economical. There is growing demand for these units in growing urban centers. Apart from new constructions people are remodeling kitchens and living spaces with convenient systems like cabinets and ward robes.

There is a wide choice of construction materials like ply boards/ particle boards/ hard wood / engineered wood like modified rubber wood/ wood polymer composite/ gypsum board etc-etc .Persons having good knowledge of the alternatives available and skills to use them can provide a very economical solution to the consumer and make a good profit at the same time.

TEMPO recommends that three or four youth can join together and start a unit for producing and marketing modular cabinets.

A workshop with following machinery may be set up at a location that can cover four or five growing towns.

Machine Nos Wood working lathe 1 cutter 2 saw 4 Gauges 2 Spindle molding machine 1 Planer/ shaper 2 Tool Grinding machine 1 Portable Jigsaw 2 tools 5 sets

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Design and manufacturing training is necessary. Initially tie up may be made with large companies and act as their agents. After establishing good contacts materials can be sourced independently and experimentation with new materials and methods can be taken up.

Investment: The unit can be set up in leased premises (about 2000 sft). Investment on machinery can be restricted to 5 to 6 lakhs and working capital to about 3 lakhs.

Main challenge will be developing a team of five or six skilled craftsmen. It will help if the promoters themselves undergo the training and take part in the installation work.

Use technology in the form of developing the designs on computer and showing the designs to the consumer. Keep updating on different materials that are being introduced in the market.

The workshop should be planned as a general carpentry workshop that can take up other works in case of slowdown in orders.

A cluster of these units can be planned adjacent to a cluster making furniture and other wood based products. The innovative aspects are using different type of materials, new designs and making units in knocked down condition for quick assembly at site.

101. Wood polymer composites

(text from Wikipedia)

Wood-plastic composites (WPCs) are composite materials made of wood fiber/wood flour andthermoplastic(s) (includes PE, PP, PVC etc.). In addition to wood fiber and plastic, WPCs can alsocontain other ligno-cellulosic and/or inorganic filler materials. WPCs are a subset of a larger categoryof materials called natural fiber plastic composites (NFPCs), which may contain no cellulose-basedfiber fillers such as pulp fibers, peanut hulls, bamboo, straw, digestate, etc. Wood-plastic composites are still new materials relative to the long history of natural lumber as a building material. The most widespread use of WPCs in North America is in outdoor deck floors, but it is also used for railings, fences, landscaping timbers, cladding and siding, park benches, molding and trim, window and door frames, and

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indoor furniture. Wood-plastic composites were first introduced into the decking market in the early 1990s. Manufacturers claim that wood-plastic composite is more environmentally friendly and requires less maintenance than the alternatives of solid wood treated with preservatives or solid wood of rot-resistant species. These materials can be molded with or without simulated wood grain details. In recent years, people in the flooring industry starts referring to WPC as a type of floor that has abasic structure of top vinyl veneer plus a rigid extruded core (the core can be made without anywood fiber). WPC is now an established product category within LVT. This type of WPC is differentthan the WPC decking and is not intended for outdoor usage.

Production Wood Plastic Composites (WPCs) are produced by thoroughly mixing ground wood particles and heated thermoplasticresin. The most common method of production is to extrude the material intothe desired shape, though injection molding is also used. WPCs may be produced from either virgin or recycled thermoplastics including HDPE, LDPE, PVC, PP, ABS, PS, and PLA. Polyethylene based WPCs are by far the most common. Additives such as colorants, coupling agents, UV stabilizers, blowing agents, foaming agents, and lubricants help tailor the end product to the target area of application. Extruded WPCs are formed into both solid and hollow profiles. A large variety of injection molded parts are also produced, from automotive door panels to cell phone covers.

There are many variables in material usage in manufacture of these products

1. The source of the cellulose fiber

2. The polymer (virgin/ recycled)

3. The filler (mineral, cellulosic)

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4. Additives

5. The finishing (use of veneers / lamination)

This provides an array of choices resulting in products of different properties.

The manufacturing can be divided into two main steps

1. Preparation of the composite material (compounding of ingredients)

2. Extrusion/ molding to produce the end product

Promoting a cluster to manufacture wood polymer composites would be a feasible project. This could be a sub set of a plastics processing cluster.

Investment per unit will be in the range of 100 to 150 lakhs.

There is enough expertise available in Hyderabad for this activity. Entrepreneurs already in this line may be encouraged with liberal assistance to start viable units at the chosen location.

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