Study on Investment Potential in Kerala

Study on
Investment
Potential of Kerala-
Final Report

Kerala State Industrial Development

Corporation Ltd

30 October, 2017

KPMG.com/in

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 Study on Investment Potential in Kerala

Disclaimer and Notice to Reader

The information contained herein is of a general nature and is not intended to address the
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 Study on Investment Potential in Kerala

Document Controller
Revision History

Version Author Date Revision

Interim Report Abhishek Agarwal, 22-Aug-16 Initial version

(Version 1.0) Hariharasubramanian

Interim Report Hariharasubramanian, 25-Sep-16 Incorporated comments

(Version 2.0) Rekha Joy from KSIDC

Draft Report Hariharasubramanian, 3-Oct-16 Sectoral Analysis

(Version 1.0) Rekha Joy, Kiran Mathi, incorporated
Varun Reddy

Draft Report Hariharasubramanian, 6-Nov-16 Incorporated comments

(Version 2.0) Rekha Joy, Kiran Mathi, from KSIDC, More sectors
Varun Reddy, Siddhartha included for study
Jayandayala

Final Report Hariharasubramanian, 2-Dec-16 Project Profiles and

(Version 1.0) Rekha Joy recommendations
prepared

Final Report Hariharasubramanian, 12-Jan-17 Incorporated comments

(Version 2.0) Rekha Joy from KSIDC

Final Report Navneet Vallat, Rekha 12-Feb-17 Incorporated comments

(Version 3.0) Joy, from ACS
Hariharasubramanian

Final Report Navneet Vallat, Rekha Joy 30-Oct-17 Final report comprising of
(Version 4.0) all review comments and
project profiles

Review History

Version Reviewer Date Comments

Interim Report Prasad Unnikrishnan 24-Aug-16 Contents, Quality review

(Version 1.0)
Interim Report Prasad Unnikrishnan 29-Sep-16 Format review
(Version 2.0)
Draft Report Prasad Unnikrishnan 6-Oct-16 Quality Assurance
(Version 1.0)
Draft Report Prasad Unnikrishnan 8-Nov-16 Contents, Format,
(Version 2.0) quality review
Final Report Prasad Unnikrishnan 4-Dec-16 Overall Review
(Version 1.0)
Final Report Prasad Unnikrishnan 14-Jan-17 Final review
(Version 2.0)
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 Study on Investment Potential in Kerala
Version Reviewer Date Comments
Final Report Prasad Unnikrishnan 13-Feb-17 Final review
(Version 3.0)
Final Report Prasad Unnikrishnan 25-Oct-17 Final review
(Version 4.0)

Release Note

Version Released To Release mode Release Date

Interim Report MD KSIDC Email 29-Aug-16
(Version 1.0)
Interim Report MD KSIDC Email/Print 29-Sep-16
(Version 2.0)
Draft Report MD KSIDC Email 6-Oct-16
(Version 1.0)
Draft Report MD KSIDC Email 10-Nov-16
(Version 2.0)
Final Report MD KSIDC Email/Print 6-Dec-16
(Version 1.0)
Final Report MD KSIDC Email/Print 16-Jan-17
(Version 2.0)
Final Report MD KSIDC Email/Print 14-Feb-17
(Version 3.0)
Draft project G Unnikrishnan Email 2-Aug-17
profiles (28
small/medium/large
project profiles)
Draft Project G Unnikrishnan Email 9-Sep-17
Profiles (24 Mega
project profiles post
review and
approval of
designated
entities/officers)
Final Project MD KSIDC Email 20-Oct-17
Profiles (Updated G Unnikrishnan
with review
comments and
suggestions
provided on review
meeting held on
Oct 16 2017)

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 Study on Investment Potential in Kerala

Contents
Executive Summary 9

Introduction 11

Objective and methodology of study 12

Understanding of Kerala’s Strategic Advantages 13

Comparative analysis with other states 14
Kerala – State SWOT analysis 16

Demographic and Infrastructure Assessment 20

District Profiling 23

Central and state level sector support incentives and initiatives 31

Central government support initiatives 31
Support initiatives offered by states 32
Existing policy framework of Kerala 36
Key takeaways for the state 37

Brand landscape of Kerala 38

Sector Assessment 38
Sector assessment framework 39
Sector listing 39
Sector Assessment – Key Findings 42

Detailed Sector Assessment 62

Agriculture and Allied Activities 62
Minerals and Mining 74
Manufacturing 75
Electricity, Gas, Water Supply & other Utility services 108
Construction 111
Trade, hotels and restaurants 113
Transport, Storage and Communication 116
Financial Services 123
Other Services 124

Kerala’s potential sectors 135

Ranking Methodology 135
Potential sectors – Top 20 sectors 136
Potential Sectors – MVA Ranking 137
Potential Sectors – TIVA Ranking 138

Roadmap – Way forward to achieve Kerala’s sector development aspirations 139

Thrust sectors of Kerala 140
Make in Kerala Sectors 140
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 Study on Investment Potential in Kerala
Kerala’s 5-point Sector Development Strategy 141
MSME Cluster Development 143

Project Profiles 146

Mega projects 146
Electronic Park 147
Multi-modal Logistics Park 151
Free Trade Warehousing Zone (FTWZ) 155
Light Metro - Kozhikode 162
Medium Density Fibreboard (MDF) Plant 166
Abattoir and Modern Meat processing unit 169
International Exhibition cum Conference Center 174
PVC Manufacturing 183
Super Absorbent Polymer 185
Elevated Highway 188
Inland Waterways and Cruise Development 190
Aerotropolis 193
Aquaculture and Seafood Exports 195
Integrated Manufacturing Cluster (IMC) 198
Petrochemical Park 202
Kerala Maritime Cluster 204
Small Hydro Power 208
Holistic Medical Village 213
Large projects 216
Cultural Zone and Theme Park 217
Domestic LED lights manufacturing 219
Medicinal Plant Preservation & Processing Unit 222
Natural Colours, Herbal Extracts and Oleoresins 225
Sports Complex 228
Experience Sharing Theme Parks 233
Micro, Small and Medium projects 237
Fruit Processing & Canning 237
Inflight Catering Unit 240
Integrated Coir Processing Unit 242
Home Based Bakery Brand 244
Household Farming Cold Storage 247
Hospital Medical Furniture 250
All-Service Portal and Training Center 254
Home-based Solar Micro generation 258
A-Z Online Delivery Portal 262
Contact Centres 266

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 Study on Investment Potential in Kerala

List of Abbreviations
BEML Bharat Earth Movers Limited
BHEL Bharat Heavy Electrical Ltd
BPO Business Process Outsourcing
CAGR Compound Annual Growth Rate
CGS Co-Generating Stations
CIAL Cochin International Air Port Ltd
CUSAT Cochin University of Science and Technology
DHQ District Head Quarters
DHS District Health Society
DIC Directorate of Industries and Commerce
DMRC Delhi Metro Rail Corporation
DPR Detailed Project Report
EDI Entrepreneurship Development Institute
EDU Economic Development Units
EMU Electrical Multiple Units
ERP Enterprise Resource Planning
FDI Foreign Direct Investment
FY Financial Year
GDDP Gross District Domestic Product
GDP Gross Domestic Product
GSDP Gross State Domestic Product
HAL Hindustan Aeronautics Ltd
HT Cables High Tension Cables
ICTT International Container Transshipment Terminal
IIM Indian Institute of Management
IPP Independent Power Producers
IT Information Technology
ITES Information Technology Enabled Services
ITI Industrial Training Institute
KASPL KPMG Advisory Services Pvt Ltd
KFRI Kerala Forest Research Institute
KINFRA Kerala Industrial Infrastructure Development Corporation
KM Kilometer
KMRL Kochi Metro Rail Ltd
KMRP Kochi Metro Rail Project
KSEB Kerala State Electricity Board
KSIDC Kerala State Industrial Development Cooperation
KSRTC Kerala State Road Transport Co-operation
KWA Kerala Water Authority
LT Cables Low Tension Cables

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 Study on Investment Potential in Kerala
MDL Mazagon Dock Limited
MDR Major District Roads
MEMU Main Line Multiple Units
MPEDA Marine Product Export Development Authority
MRTS Mass Rapid Transit System
MS Ingos Mild Steel Ingos
MSME Micro Small Medium Enterprise
MT Metric Tons
MW Megawatt
NW National Waterway
P Provisional Estimate
PMEGP Prime Minister's Employment Generation Programme
PWD Public Works Department
Q Quick Estimate
R&B Roads and Bridges
R&D Research and development
REC Regional Engineering College
RTE Ready-to-Eat
SEZ Special Economic Zones
SH State Highway
SIDCO Kerala Small Industrial Development Co-operation
SME Small and Medium Enterprise
TKM Thangal Kunju Musaliar
TMT Thermo Mechanical Treatment
TTI Teachers' Training Institute

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 Study on Investment Potential in Kerala

Executive Summary
Kerala is at the forefront of social empowerment in India. The business environment in the
country is broadly changing in favour of new-emerging sectors including agriculture, food
processing and high value-added manufacturing aided by various Central and State Government
initiatives. With the increasing focus on entrepreneurship by the State Government, the time has
never been so ripe for businesses, both young and old, both traditional and disruptive, both risk-
averse and risk-taking. With unique demographic and economic profile, the State is well placed
to take prime position in the ever growing economy of the Country.

With its unique economic profile, the state is well placed to take prime position in the new
changing Indian economy. Kerala is keen to identify the emerging new sectors for focused
development through both policy and support. The study is focussed on understanding the
investment potential (IP) in Kerala. Agriculture plays a vital role in Kerala’s economy. A major
portion of the rural households depend on agriculture as their principal means of livelihood.
Agriculture, along with food processing, is one of the largest contributors to the Gross Domestic
Product (GDP) of the State.

The broad methodology of the entire study comprises of assessment of:

• Kerala’s Strategic Advantages and Positioning
• Demographics and Infrastructure
• District Profiling
• Sector Landscape
• Profiling of Potential sectors and projects
• Recommendations

The sectoral assessment was conducted basis the below methodology and project profiles were
prepared for high potential sectors. The assessment also incorporated inputs from the detailed
district profiling exercise to understand potential districts and their industrial infrastructure.
Various sectors were listed based on primary, secondary and tertiary sector analysis. Based on
relevance and presence in Kerala, sub-sectors were shortlisted and detailed assessment of
sectors were done based on certain set of parameters. The key findings from the study helped
in identifying existing and new thrust sectors for Kerala and overall investment potential for the
state. Kerala is doing well in certain cash crops and horticulture produce that is supporting
growth of food processing industry which is poised to enter the path of high growth trajectory.
Kerala is the major producer of Spices, Cashews, Coconuts, Cocoa, Coffee and Tea and Fruits
like Banana and pineapple. Kerala accounts for 97 per cent of country’s pepper production, 70
per cent of Cocoa production, 25 per cent of Coffee production, 42 per cent of Coconut and 16
per cent of Cashew production

Kerala presents itself with a variety of opportunities in the food processing sector including food
processing setups, custom hiring centres for farm implements etc. Kerala has a food processing
infrastructure comprising of nearly 1274 Food processing units, 2 Agriculture Export Zones, 3
Food parks and 1 Incubation centre. In addition to the existing infrastructure, Kerala has been
sanctioned 2 Mega food parks (Alappuzha and Palakkad) and 2 cold chain projects by MOFPI
which will further improve the prospects of food processing industry in the state. Kerala has 197
cold storage units with a combined capacity of ~78000 MT. The Government of Kerala is
committed to enable further growth in this sector and has laid out multiple initiatives to help
achieve the same. Recently, the sector has attracted heavy investments, both from Indian and
international investors looking to capitalize on the opportunities. Rising consumerism coupled
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 Study on Investment Potential in Kerala
with strong policy support and digital innovations has led many food processing players to
change their business models. This has indirectly led to efforts being directed towards bridging
the tremendous ‘yield gap’ between the average yields of farms when compared to global peers.
The varied opportunities include:

Kerala also has a well-established transportation infrastructure with an all-weather seaport at

Kochi, port at Vizhinjam and good connectivity through road and rail infrastructure. With its vast
coastline and increasing port strength, Kerala contributes to nearly half of India’s marine fish
landing of sardines, shrimps, lobster, cuttlefish, squid, Tuna. Marine products lead the list of food
products exported from the state. The aquaculture scenario in Kerala is mostly dominated by
shrimp culture especially in coastal area, and recorded rapid progression in production and
makes a significant contribution to the foreign exchange earnings through exports. The
diversification of production by introducing new commercial species, adoption of new
technologies and introduction of seafood export units (with cold storage and processing
facilities) for value added products shall help open a new set of opportunities in the fisheries
sector.

Rubber and rubber based industry has always been a key contributor to the State’s growth. The
state has a well-equipped footprint of rubber-based industries such as tyre manufacturing,
footwear manufacturing (market size of Kerala values at INR 700 Cr) and other rubber-based
product industries. Various tyres and footwear brands have gained global recognition and have
high export demand and potential. Though Kerala contributes about 82 per cent, Kerala’s
plantation sector has been severely hit due to the unrestricted import of cash crops with the total
value of production in the state has declined by nearly 17 per cent during 2012-16 period with
value summing to INR 9,751 crore in 2016-17. According to the Association of Planters of Kerala
(APK), import of plantation commodities, coupled with the inability of planters to move up in the
value chain, have made the sector a low-end commodity producer.

The key thrust sectors of Kerala are:

• Tourism & Hospitality
• IT & ITES
• Electronics
• Wood – Furniture making
• Healthcare
• Food Processing
• Gems and Jewelry
• Rubber based products
• Bakery & Confectionery

In order to achieve key development objectives to bring about a transformation in Kerala’s

sectoral development, the state will undertake a combination of policy, investment promotion,
infrastructure, skilling and other interventions to channelize efforts into attaining prominence in
the thrust sectors:
• Repositioning Kerala to imply a ‘business-friendly’ and ‘investment-attractive’
destination - A review of policies and infrastructure in Kerala suggests that the state has
moved ahead in doing the right things for aiding businesses
• As Kerala has long coastal line, state can focus on building a Port-led manufacturing
cluster with internal transport linkages
• Focusing on a major policy push to build Brand Kerala - Focused promotional activities
should be on-boarded for thrust sectors
• Development of an entrepreneurial ecosystem in the state to promote local enterprises
in the industrial and in the technology space
• Building expert skill development base focusing on multiple sector specific skill zones
supported by world-class infrastructure
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 Study on Investment Potential in Kerala

Introduction
Kerala has for many years and continues to lead India on the social development front. Being
the state with the highest female sex ratio 1 and highest literacy rate 2, it recently declared itself
“open defecation free”. Kerala is viewed as role-model state for its healthcare development with
its child development indictors (IMR 6) levels being comparable to that of the US and other
developed nations. 3 This investment in human development has provided a strong foundation
to Kerala’s surging economy. A recent working paper 4 by World Bank placed Kerala at the second
position in the Investment Climate Index ranking. Government of Kerala, in its budget 2018-19,
proposed an outlay of US$ 1,131.75 million for the Agriculture, Animal Husbandry and Co-
operation. The State is home to the first international transhipment terminal in India. With a
design capacity of around 4 million TEUs it provides improved connectivity between Kerala and
other ports in India thus further propelling easy trade and cargo movement. Kerala currently has
29 approved Special Economic Zones, in addition to another 25 notified SEZs in the pipeline for
approval. A cyber-park, spread over a 68-acre campus, is being developed in Kozhikode. Kerala
has been promoting knowledge-based industries such as IT/ITeS, computer hardware and
biotechnology. IT Parks at three cities (Trivandrum, Kochi & Kozhikode) and at smaller towns
have being employed around 75,000 – 80,000 IT professionals. It is the first state having a
technology park with CMMI level 4 quality certification and a world-class IT campus in
Thiruvananthapuram 5. Such world-class infrastructure and well-trained human resource, along
with the recent commitment shown by the state government, has positioned Kerala at the second
rank, followed by Karnataka. Kerala is a 100% literate 6 and a 100% digital state 7 that provides
land of opportunities.

Kerala is strategically located on the trans-national trade corridor, offering rich and diverse
natural resources. Straightforward and transparent procedures for trade provide the state the
conducive nurturing environment for investments in major sectors such as tourism, IT/ITeS,
manufacturing and mining. Kerala’s economic growth is built upon three sectors- agriculture,
mining, fishing, and quarrying being the primary with manufacturing and construction industry
comprising of the secondary sector domain. Kerala’s distinctive heritage and cultural diversity
have attracted world tourists making tourism, hotels and transportation as their third growth
sector. A travel survey conducted by BBC rated Kerala as the most preferred tourist destination
by foreign travellers. An increase in foreign tourist arrivals by 5.71%, during 2016 over 2015, the
state footfall is expected to reach as high as 3 million by 2021.5

Looking at the promising growth areas in Kerala, it is imperative for the state government to
provide encouragement to boost investments in the State. Research enquiries and feasibility
studies that successfully identify the prospective investment areas and strategies to catapult its
growth story shall be promoted. To tap the full potential of state’s educated work force, Kerala
is keen to identify the emerging new sectors for focused development through both policy and
support. The study is focussed on this theme and is in line with the below stated objective.

1
Census 2011, http://censusindia.gov.in/Census_Data_2001/India_at_glance/fsex.aspx
2
Census 2011, http://censusindia.gov.in/Census_Data_2001/India_at_glance/literates1.aspx
3
https://thelogicalindian.com/health/infant-mortality-rate/
4
The Investment Climate in 16 Indian States , World Bank
http://documents.worldbank.org/curated/en/897181468044086527/pdf/WPS4817.pdf
5
India Brand Equity Foundation , March 2018
6
https://timesofindia.indiatimes.com/india/Kerala-becomes-1st-state-in-country-to-achieve-100-primary-
education/articleshow/50540263.cms
7
http://trak.in/tags/business/2015/08/17/kerala-100-mobile-density-eliteracy-complete-digital-state/
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 Study on Investment Potential in Kerala

Objective and methodology of study

The study aims to identify the overall investment potential in Kerala by undertaking the below
key tasks namely:

Understanding of Kerala’s strategic advantages and

positioning

Demographics and infrastructure assessment

District profiling

Sector selection and assessment

Identification of potential sectors

Profiling of potential projects

Way Forward - Roadmap

The various sectors which are of relevance in the Kerala context and assessed based on the
following methodology and key thrust sectors of Kerala are identified.

Figure 1: Methodology

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 Study on Investment Potential in Kerala

Understanding of Kerala’s Strategic Advantages

Kerala is the 13th most populated state in India, with an area of 38 thousand sq. km, population
density of 859/Km2 which is much more than the national average of 382 persons per sq. km.
Also sex ratio of 1083 better than the national average of 943 with a higher male literacy (96.02%)
and female literacy (91.98%) than the national average.
Culturally, the state is rich and vibrant in heritage and tradition with a lineage of ancient
structures with ornate architecture. Arts forms like Kadhakali and Mohinyattom etc. attracts
many tourists. Blessed with several pristine beaches and backwaters it is also “God’s own
country”. Its unique topography in form of the wooded Eastern Ghats, a fertile river basin and a
long coastline are the thriving reservoirs for a vast variety of wildlife and floral ecosystem.
Kerala represents only 1.18% of the total area of India but has 2.76% of the total population of
the country. With a 3.09 lakh Cr economy, the production of pepper and natural rubber provides
significant contribution to the total national output. The state shares its borders with Tamil Nadu,
and Karnataka, and a 585 km long coastline with the Indian Ocean. Table 1 below shows the
demographics, economic and social indicators of Kerala along with comparative indicators for
India.

Economic Indicators Kerala India

Population growth rate (2001 to 2011) 4.9% 17.6%

Literacy Rate (Census 2011) 94% 74%

Real Growth Rate of GSDP/GDP (2014-15) (%) 6.67 7.40

Contribution of Agriculture to GSDP/GDP (%)

12.9 18
(2013-14)

Rate of growth of manufacturing sector (%) (2014-

8.9 8.2
15)

Contribution of Service sector to GSDP (%) (2013-

66% 57%
14)

Rural/ Urban Unemployment Rate 21.7/18 4.9/9.2

Table 1: Key Economic Indicators of Kerala

Source: Economic review 2015, KPMG in India analysis 2018

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 Study on Investment Potential in Kerala
Comparative analysis with other states

Under this section a comparative analysis of Kerala is done with neighbouring/comparable states
and states leading in the region from a macro-economic perspective.

Leading states in the

region w.r.t industry
performance and GSDP

Neighbouring
States

Figure 2: States selected for Comparative Assessment

The economic growth of Kerala hasn’t

kept pace with that of leading states Maharashtra 8.90%
during the ten year period between Gujarath 9.30%
FY05 and FY15.
Andhra Pradesh 10.20%
Top 10 states contribute 4% and above Karnataka 7.20%
each to the manufacturing output of the
country. Kerala’s share is as low as Tamil Nadu 9.10%
1.6%. Kerala 9.30%

Figure 3: Growth Rate of GSDP across States (Real FY05-FY15)

Source: Economic Review 2015, KPMG in India Analysis 2017

Gross State Domestic Product

Kerala has an average annual growth Kerala Tamil Nadu Karnataka

rate of 14.29% and the contribution Andhra Pradesh Gujarat Maharashtra
20.00%
to all India GDP is 3.78%. Based on
annual growth rate for past ten years 15.00%
Tamil Nadu is the leading state with
16.38% share and Maharashtra 10.00%
contributes maximum share of all-
India GDP contribution, with 14.42% 5.00%
contribution. 0.00%
Figure 4 GSDP
13.50Comparison of States
14.00 14.50 15.00 15.50 16.00 16.50 17.00
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 Study on Investment Potential in Kerala

Source: GSDP of States, NITI Aayog; KPMG Analysis

Agriculture Sector
Kerala lags behind in agricultural Kerala Tamil Nadu Karnataka
production portraying a negative growth Andhra Pradesh Gujarat Maharashtra
rate in recent years. Gujarat leads in
average growth rate for Agriculture 30
sector. Andhra Pradesh’s agriculture
20
sector contributes the highest to the
10
state’s GSDP.
0
-2.00 0.00 2.00 4.00 6.00 8.00
Figure 5: States comparison in agriculture sector
Source: GSDP of States, NITI Aayog; KPMG Analysis

Industrial Sector
Annual growth of Industrial sectors are Kerala Tamil Nadu Karnataka
taken in X – Axis, Percentage Andhra Pradesh Gujarat Maharashtra
contribution Industrial sectors to GSDP 50.00
of states (2014) are taken in Y – Axis,
and the size of the bubble shows the 40.00
GSDP of the states. 30.00
Gujarat contributes 40% to states GDP
from industries. Also the growth rate is 20.00
almost 8%. 2.00 4.00 6.00 8.00 10.00
Kerala is slightly ahead of Tamil Nadu
and Andhra Pradesh in terms of growth Figure 6: States comparison in industrial sector
rate. Also has same GSDP contribution Source: GSDP of States, NITI Aayog; KPMG Analysis
as that of Andhra Pradesh.
Tamil Nadu and Maharashtra are in second and third position for percentage of contribution by
industrial sector to states’ GSDP. Manufacturing clusters are widespread in the Gujarat-
Maharashtra-Western UP area, Chennai-Bangalore cluster and the in Central India.

Services Sector Kerala Tamil Nadu Karnataka

Average annual growth rate for past Andhra Pradesh Gujarat Maharashtra
seven years of sates in services sectors
are taken in X – Axis, Percentage 70.00
contribution Services sectors to GSDP of
states (2014) are taken in Y – Axis, and the 65.00
size of the bubble shows the GSDP of the
states.
60.00
Kerala has got the highest contribution to
GSDP among all the states being
compared, and has got better growth rate 55.00
than Andhra Pradesh and Karnataka. 7.00 8.00 9.00 10.00 11.00
Gujarat is leading with 10.22% average
Figure 7: States comparison on Services sector
growth rate in this sector.
Source: GSDP of States, NITI Aayog; KPMG Analysis

Kerala can capitalize on the overall growth pattern of the country and seize the opportunity to
become the leading hub of the region for new opportunities, catering not only to the regional
market but also becoming an export hub for South East Asian countries.
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 Study on Investment Potential in Kerala

Kerala is positioned well in the services sector and with at par industrial growth with leading
states, the state has immense potential to increase its industrial landscape and in effect
increasing manufacturing output of the state

Kerala – State SWOT analysis

Strengths

• Strategic Location
Kerala is situated on southern tip of India bordering the Arabian ocean. Its location allows it
to act as the gateway to all Middle East nations and neighbouring countries.

• Steady state economy

Kerala has one of the steady growing economies in the country, over the past two-plus
decades (1990 to 2015), Kerala has grown at an impressive rate of over 6.3 per cent. Not only
did economic growth increase, but the poverty rate also fell from over 65 per cent to less
than 15 per cent during this period.

• Infrastructure
Kerala is amongst the well performing states in India and holds significant industrial potential
in good infrastructure facilities like transport system, airports, port and harbours. Transport
infrastructure of the State consists of 3.31 lakh Kms of road, 1257 Kms of Railways, 1687 Kms
of Inland Waterways and 111 statute miles of Airways and 18 Ports.

• Long Coastline
With a 585 km coastline, Kerala has great avenues for food processing, exports and sea-
based resources.

• Access to ports
Kerala has a major port at Kochi and 17 other ports, which are mostly seasonal. Of them
developments are taking place in Vizhinjam, Thankassery, Alappuzha, Munambam, Ponnani,
Beypore and Azhikkal. Figure 7 shows the share of traffic in each port as on 2014-15. The total
traffic of Ports in south India was 2, 31,371 tonnes.

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 Study on Investment Potential in Kerala

Kamarajar Vishakapatanam,
(Ennore), 13% 25%
Cochin Port, 9%

V.O Chidabaranar,
14%

Chennai, 23%

New Manglore,
16%

Figure 8: Share of Port Traffic in South India

Source: Cochin Port Trust

Cochin Port handles 9% of port traffic. Vishakhapatnam handles the highest traffic with 25%
share followed by Chennai port of 23% and New Mangalore port of 16%. Up gradation of
existing port facilities can provide Kerala an advantage.

• Communication Network
Compared to the national tele-density of 77.12, Kerala has a high tele-density of 96.74

• Water Availability
Kerala is one of the few Indian States with abundant supply of potable water. Its rivers, lakes
and backwaters ensure that if used efficiently and conscientiously, they meet the domestic
and industrial water needs. There are 53 reservoirs, and 44 lakes in Kerala. In industrial parks
run by agencies such as KSIDC and KINFRA, the operators have their own water sources and
supply lines.

• Literate Population
Kerala has a highest literacy rate (94%) than any other state (national average rate of 74%)

• Access to talent pool

Kerala has presence of excellent academic institutions like IIM, IIT, NIT, CET, IIST, IITM-K,
IISER and many more technical institutions. There is an abundant talent pool with nearly 16
thousand students graduating per year in Electronics & allied branches from the big network
of professional colleges, polytechnics, industrial training institutes and engineering colleges.

• India's most advanced tourist destination

Total revenue from tourism during 2015 had shown an increase of 7.25%, compared to 2014
and total FOREX earning in 2015 has increased by 8.61% as compared to 2014. Foreign and
Domestic tourist arrival during 2015 showed an increase of 5.86% and 6.59% respectively.

• Industrial Clusters
The state has got different industrial clusters. This could be utilized for new opportunities
emerging in various industries.

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 Study on Investment Potential in Kerala

Minerals and
mining

General
Engineering,
wood, offset
printers
Agro based products,
minerals and mining
General
Engineering, food
processing, rubber, General engineering, wood,
Footwear rubber, garments,

Terra tiles, canning, Agricultural

handlooms and implements,
powerlooms sericulture

IT, Offset printers, general

engineering, furniture, rubber, Rubber, food, soft
garments, plastic, plywood toys, engineering

Garments, coir, General engineering,

food processing, food processing
Printing and
Publishing

IT, handlooms and

Wood, food processing,
powerlooms, Rubber,
garments
textiles, cashew, oil
mills, minerals and
mining
Figure 9: Key Industrial sectors of Kerala
Source: KSIDC, KPMG in India Analysis 2017

Challenges

• Labour force
Though Kerala is an exporter of manpower to the world, they experience a shortage of labour
force, thus making labour expensive. Both male and female workforce participation for Kerala
is lower than the national average with high wage rates.

• Branding deficit and low visibility

Kerala suffers from a branding deficit, it is known mostly in the context of tourism.

• Power
Kerala faces with shortage of power, being one of the prime obstacle in the industrial
development. The need for power is ever increasing and the state hasn’t been able to cope
up with the growing demand. The current sources of energy are essentially Hydel power. Of
the total installed capacity, hydel contributed the major share of 72%; while 15% was
contributed by thermal projects, and NTPC (National Thermal Power Co-operation)
contributes 13%.

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 Study on Investment Potential in Kerala
• Consumer state
Kerala is considers to be consumer state. Agriculture production is very low compared to
neighbouring states Tamil Nadu, Karnataka and Andhra

• Ease of Doing Business

According to the survey carried out by World Bank, Kerala is perceived to have a few business
opportunities without a favourable business climate and ranked 18 (2015). Difficulty in
governmental procedures such as registration of the businesses.

• Inadequate International connectivity

The state needs to gear up its International connectivity with more flights connecting the
state with Americas, Europe & South East Asia.

Threats

• Competition from other states

Due to a change in the investment climate in the country, several new states are reaching out
to investors to attract investments and boost the local economy.

• Clustering of new sectors

New sectors, that are currently not geography specific, such as, ESDM, Defence
Manufacturing, Technical Textile; there is increased competition from other states. This
poses a threat to Kerala as the first-mover advantage in these sectors will set the tone for its
development in the next ten years.

• Land availability
Less Land available for Industrial development, and also land cost is high compared to
nearby states

• Skilled resources
Thought Kerala is supplier of skilled resources, the availability in local market is a challenge.
Resources from other states are capturing the local market.

Opportunities

• Significant untapped potential

With regards to Natural resources, port advantage and emerging infrastructure, Kerala has a
significant domestic potential waiting to be untapped

• Opportunity to be the leading state in south zone

Western and Eastern India has deficiency of a full-grown industry unlike the Kerala’s coast
leaving space for ample opportunities. With its advantages, Kerala could be the industry fore-
runner in the region.

• Attract investments from SE Asia

Strategic location gives an opportunity for trade with South Asia.

• Significant Export Potential

Kerala has a huge export potentials in exports of marine products, spices, coir and other
traditional items like Ayurveda products. Gold Jewellery can also act as a high export
potential product.

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 Study on Investment Potential in Kerala

Demographic and Infrastructure Assessment

For businesses to flourish and generate revenue in an economy, it is imperative that adequate
and well-connected infrastructure is available. This section evaluates the as-is situation of
infrastructure and demographics in Kerala, the key takeaways of which will form basis for selection
of potential sectors for investments. Demographic and infrastructure development of a state
contributes to the State GDP leading to urbanization. Infrastructure acts as support to many
industries and in-effect creates employment opportunities in the State.
Under this section, Kerala’s Demographic, Mineral Resource and Infrastructure profile is assessed
and key gaps are identified. These parameters are considered for analysis because of the following
considerations.

• Demographic Profile – Geography and population profile are important considerations

while evaluating trade and market demand prospects
• Mineral Resource Profile – Resource endowments increases possibility of attracting
investments
• Infrastructure Connectivity – Mobility options are necessary for effective functioning of
all operations across any business value chain
• Social Infrastructure – Key factor to assess job creation prospects
• Industrial Infrastructure – State-of-the-art facilities to support industrial development is a
key element for attracting entrepreneurs
The key takeaways of this analysis would be used in identifying sectors/industries with potential
investment opportunities in Kerala.
Demographic snapshot of Kerala
• Hydel & Thermal Generation accounts for major share. Solar and
Wind marginal additions
• Higher energy availability
• Actual energy shortage was 0.5% against anticipated shortage of
Power 14.2%
• Minimal energy shortages compared to TN, AP&T and KN – 0.3-
0.5%
• Maximum power consumption revenue collected from Industrial
segments

• Quality of shallow groundwater better than other states

Water Supply
• Highest open well density in India with 200 wells per sq.km

• State government priority to develop national highways to 45m

width
• Better placed than other states w.r.t road length; However condition
Road
of roads deteriorating
• Easy accessibility of pastoral areas -
• Scattered pattern of urbanization a challenge

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 Study on Investment Potential in Kerala

• Performed better in terms of rail density than national average

• Government has planned new projects such as Suburban train
Railways
services, Metro, Light Metro Rail
• Increased efforts in establishing railway sector

• Lacks well connected city gas pipeline network – Only 1 CGD

Gas Pipelines
network authorized in Ernakulam district

• 3 operational airports, 1 planned airport

Air Travel
• Key mode of transport catering to the tourism sector

• Cochin port handled only 3.71% of all-India major ports cargo traffic
• Minor ports underdeveloped hence not able to attract sufficient
Ports vessels
• 5.4% increase in port traffic during Apr-Aug 16 period over last year
compared to 10.8% increase in Vishakhapatnam port

Digital & • Highest tele-density and penetration of optic fibre cable in the
Telecommunication country
Table 2: Demographic snapshot of Kerala

Detailed demographic and infrastructure assessment is available in Annexure I.

Industrial Infrastructure snapshot of Kerala

Kerala Industrial No. Investment

Infrastructure
Infrastructure District of Name s (INR
Utilization (%)
Development Parks Lakhs)
Cooperation
(KINFRA) Export
21 Parks Promotion
12157 100%
Industrial
Park

Ernakulam 4 Industrial
NA 100%
Park

Hi Tech Park 1903 NA

Rubber Park NA NA
Integrated
Industrial & 52749 56% 8
Textile Park

WISE Park NA 88%8

Palakkad 4
Not
Project in
operational
Defence Park planning
(Planning
stage
stage)

8
Infrastructure availability for new units
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 Study on Investment Potential in Kerala

Not
Project in
Mega Food operational
planning
Park (Planning
stage
stage)
Textile
Centre, 1282 34%8
Kannur 3 Thaliparamba

Industrial
4194 92%8
Park

International
3982 93%8
Thiruvananth Apparel Park
2
apuram Film & Video
NA 93%8
Park
Food
Processing 1164 100%
Park
Malappuram 2
Techno
Industrial 11648 73.6%8
Park

Industrial
3010 46%8
Park
Pathanamthit
2 Food
ta
Industrial 5962 81%8
Park

Alappuzha 1 Seafood Park NA NA

Industrial
Thrissur 1 225 100%
Park

Industrial
Wayanad 1 5842 94%8
Park
Industrial
Kasaragod 1 7971 88.9%8
Park

Small Industries
Development
Corporation (SIDCO)
• 17 Major Industrial
Estates
• 36 Mini Industrial
Estates
• 923 Industrial sheds
• 7 Industrial Parks
• 9 Production units

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 Study on Investment Potential in Kerala

(Unit in no of jobs generated)

• KSIDC has acquired land at four industrially backward locations in

Kerala State Industrial Kannur, Kozhikode and Alappuzha districts
Development • KSIDC aims to ensure basic infrastructural facilities such as road,
Cooperation (KSIDC) water, power, telecommunication etc. are available to these districts
• 3 Growth Centres • Two mega projects are in progress namely Electronic Hub at
Ernakulam and Mega Food Park at Cherthala
Average
Utilization of
District DA DP Others
Infrastructure
(%)

Thiruvananth
1 1 - 100%
apuram

Kollam - 2 - 93%
Pathanamthit
- 1 - 100%
ta

Coir Park –
Alappuzha 2 2 95%
2
Directorate of Industries
& Commerce (DIC) Kottayam - 3 - 100%
• 37 Industrial
Development Idukki - 1 - 100%
Plot/Areas Ernakulam 4 2 - 100%

Thrissur - 4 - 100%

NIDA
Palakkad - 3 82%
Kanjkode
Industrial
Malappuram - - Estate 67%
Manjeri

Kozhikode - 1 - 100%
Kannur - 1 - 100%

Kasaragod 1 2 - 80%
Table 3: Industrial Infrastructure snapshot of Kerala

Detailed industrial infrastructure assessment is available in Annexure II.

District Profiling
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 Study on Investment Potential in Kerala

Districts are studied to understand their administrative setup, Gross District Domestic Product,
Agriculture and Allied activities, Industrial profile, Connectivity and Social Infrastructure. The key
findings are provided in subsequent sections. Detailed district profiling is available in Annexure III.

Figure 10: District Profiling Assessment Framework

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 Study on Investment Potential in Kerala

S No. District Name Industrial Clusters Major Exports Industrial Sector Manufacturi Top 3 GDP Industrial
Growth ng sector Contributing Infrastructure
(Investment (I), GDP sectors 9
Employment (E), contribution
No. of Registered
Units (U))

1 Kasaragod • General • Cashew and • I – 42% 0.66% • AA (20%) • KINFRA Small

Engineering allied products • E – 19% • THR (19%) Industries Park at
• Food Processing, • U – 26% • RBL (14%) Seethangoli
• Rubber Industries
2 Kannur • General • Textiles • I – 10% 3.58% • THR (22%) • KSIDC Industrial
Engineering • Wood • E – 6% • RBL (13%) Growth Center
• Wood Products • U – 10% • C (13.4%) • KINFRA Small
• Offset Printers Industries Park
• KINFRA Textile
Park, Cyber Park

3 Kozhikode • General • Footwear • I – 26% 3.74% • THR (22%) • Cyber Park

Engineering • Marine • E – 61% • C (15%) (Nellikode)
• Food Processing Products • U – 32% • RBL (14%) • Industrial Growth
Rubber • Software Centers (KSIDC)
• Footwear • Food Products
• Umbrellas
• Batteries
4 Thrissur • Canning • Ayurvedic • I – 4% 6.59% • THR (21%) • KINFRA Small
• Handlooms Products • E – 11% • RBL (14%) Industries Park,
• Power looms • Handicrafts • U – -14% • C (13%) • KINFRA Industrial
• Terra Tiles • Textiles (decrease) Park

9
M – Manufacturing
AA – Agriculture & Allied Activities
C – Construction
TSC – Transport, Storage & Communication
THR – Trade, Hotels & Restaurants
RBL – Real Estate, Business, Legal
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S No. District Name Industrial Clusters Major Exports Industrial Sector Manufacturi Top 3 GDP Industrial
Growth ng sector Contributing Infrastructure
(Investment (I), GDP sectors 9
Employment (E), contribution
No. of Registered
Units (U))

• Coconut • Food Products

• Dry Fish
• Rubber
Products
• Coconut Oil
• Spice Oil
• Food
Processing
• Machineries
• Concrete
Product
Machineries

5 Ernakulam • IT, Offset printers • Tea • I – 15% 15.5 % • THR (17%) • Infopark,
• General • Cashew • E – 13% • C (16%) • Cochin SEZ
Engineering • Coir Products • U – 21% • M (15.5%) • KINFRA Export
• Furniture • Coffee Promotion
• Rubber • Sea food Industrial Park
• Garments products, • KINFRA Food
• Plastic • Spices Park
• Plywood • Vanilla • KINFRA Small
• Electronics • Agro & Food Industries Park,
Rubber Park
• Inkel Business
Towers (WE
space)

6 Alappuzha • Garments • Shrimps • I -18% 5.9 % • THR (19%) • Seafood Park

• Coir • Coir Products (decrease) • RBL (16%) • Industrial Growth
Centre of KSIDC
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 Study on Investment Potential in Kerala

S No. District Name Industrial Clusters Major Exports Industrial Sector Manufacturi Top 3 GDP Industrial
Growth ng sector Contributing Infrastructure
(Investment (I), GDP sectors 9
Employment (E), contribution
No. of Registered
Units (U))

• Food Processing • E -20% • TSC (13%) • Mega Food Park

(decrease) for marine
• U -18% processing
(decrease)

7 Kottayam • Rubber • Rubber • I – 19% 4.3 % • AA (16%) • Nil

• Food Products • E – 23% • THR (18%)
• Soft Toys • Ethnic Food • U – 28% • RBL (14%)
• Engineering • Engineering
Tools
• Spice Extracts
8 Wayanad • Agro-based • Spices • I – 15% 2.7 % • AA (25%) • KINFRA Small
• Minerals & • E – 2% • RBL (17%) Industries Park
Mining • U – 13% • THR (13%)
9 Malappuram • General • Food Products • I – 12% 3.73 % • THR (19%) • KINFRA
Engineering • Treated rubber • E - 14% • RBL (16%) Neospace
• Wood • U – 18% • C (12%)
wood furniture
• Rubber
• Garments
10 Palakkad • Agricultural • Coconut Oil • I – 68% 10.9 % • THR (18%) • Western India
Implements, • Sortex rice • E – 12% • RBL (15%) KINRA Ltd.
• Sericulture • Processed • U – 22% • AA (14%) • Light Engineering
Tamarind Industrial Park
• Dry Ginger • Mega Food Park
• Coffee powder KINFRA
• Curry Masala
Powders

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 Study on Investment Potential in Kerala

S No. District Name Industrial Clusters Major Exports Industrial Sector Manufacturi Top 3 GDP Industrial
Growth ng sector Contributing Infrastructure
(Investment (I), GDP sectors 9
Employment (E), contribution
No. of Registered
Units (U))

• Pickles
• Garments
• Ayurvedic
Products
• Agricultural
Implements

11 Idukki • Rubber • Spices • I – 7% 4.1 % • AA (32.4%) • KINFRA Standard

• Wood • E – 9% • RBL (16%) design factories
• Engineering • U – 12% • THR (11%) at Rajakumari
• Agriculture
12 Pathanamthitta • General • Oleoresin • I - -1% 1.9 % • AA (15.7%) • KINFRA Industrial
Engineering • Spice Oil (decrease) • RBL (16.5%) Park
• Food Processing • Food Products • E - -26% • THR (13%) • KINFRA Food
(decrease) Processing Park
• U - -29%
(decrease)

13 Kollam • Wood, • Cashew • I – 10% 3.9 % • THR (17%) • Industrial Estates

• Food Processing, • Seafood • E – 5% • RBL (16%) promoted by
• Garments • Coir • U – 13% • AA (13%) SIDCO
• Handloom • DIC
• IP Promoted by
KINFRA

14 Thiruvananthap • Handloom • Handloom • I – 27% 7.5 % • THR (15.21%) • Technopark,

uram • Coir & products • E – 19% • RBL (14.41%) KINFRA
Handicrafts • Handicrafts • U – 22% • TSC (12.7%) International
Apparel Park

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 Study on Investment Potential in Kerala

S No. District Name Industrial Clusters Major Exports Industrial Sector Manufacturi Top 3 GDP Industrial
Growth ng sector Contributing Infrastructure
(Investment (I), GDP sectors 9
Employment (E), contribution
No. of Registered
Units (U))

• Software • Film & Video Park

Products
Table 4: District Profiling – Key takeaways

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 Study on Investment Potential in Kerala

Districts that have fared well in each of the assessment parameters are mentioned below:

Parameter Highest Lowest

Industrial Sector Investment (I) Palakkad Alappuzha

growth

Industrial Sector Employment (E) Kozhikode Pathanamthitta

growth

Industrial Sector No. of Kozhikode Pathanamthitta

Registered Units (U) growth

GDP Contributing District in Ernakulam Kasaragod

Manufacturing (M)

GDP Contributing District in Idukki Alappuzha

Agriculture and Allied Activities
(AA)
GDP Contributing District in Ernakulam Wayanad
Construction (C)

GDP Contributing District in Ernakulam Wayanad

Transport, Storage &
Communication (TSC)

GDP Contributing District in Ernakulam Wayanad

Trade, Hotels & Restaurants
(THR)

GDP Contributing District in Real Trivandrum Wayanad

Estate, Business, Legal (RBL)

Industrial Infrastructure Ernakulam Kottayam

Table 5: District Assessment Parameters – Top districts

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 Study on Investment Potential in Kerala

Central and state level sector support incentives and initiatives

Government of Kerala is dedicated towards its commitment to make Kerala investment friendly. The
state government has formulated a wide range of fiscal and policy incentives for businesses under the
Industrial and Commercial Policy and has well-drafted sector-specific policies. Through IT, Tourism,
labour and startup policies, the Government offers range of fiscal incentives, standard investment
subsidies (SIS) concessional power tariffs and exemptions. To further attract investments across
automated robotic car parking system, a tax reduction from 14.5% to 5% 10 has being proposed by
the State Government. To encourage investments from NRI community, the State Industrial
Development Corporation has detailed a “NRI zone” that act as a one-stop platform to apprise the
NRIs on the investment opportunities and various FDI, FT policies and procedures & clearances
required. Stamp duty exemption for land acquisition, refund or exemption of value added tax,
exemption from payment of electricity duty are some additional incentives by the State. To further
boost the investment scenario in India, the Central Government provides investment allowance
(additional depreciation) at the rate of 15 percent to manufacturing companies that invest more than
INR 1 billion in plant and machinery. To strengthen the manufacturing sector in the country, incentives
are given for unit’s set-up in Special Economic Zones (SEZ), National Investment & Manufacturing
Zones (NIMZ). Additionally, exports incentives like duty drawback, duty exemption/remission
schemes, focus products & market schemes are also extended by the central government to encourage
healthy investment in the States. 11

Central government support initiatives

Figure 11: Snapshot of Central Government Support Schemes 12

10
IBEF
11
Make in India, http://www.makeinindia.com/policy/foreign-direct-investment
12
http://indianexpress.com/article/business/budget/a-new-pradhan-mantri-flagship-for-micro-irrigation-this-time/ ;
http://www.soilhealth.dac.gov.in/ 3. http://dahd.nic.in/about-us/divisions/cattle-and-dairy-development/rgm-rashtriya-gokul-mission;
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 Study on Investment Potential in Kerala

Detailed assessment of Central Government schemes are available in Annexure III.

Support initiatives offered by states

Tamil Nadu

Type Description Sector/Industry

• Investment Promotion subsidy/soft loan is

provided to the investors if they double the
Incentivizing committed employment levels within the
additional investment period.
All sectors
employment • Training Subsidy will be provided as an incentive –
generation based on the capacity of employment generation
and the potential for significant improvement of
skills

• Government is providing higher incentives

/concessions and can provide relaxation on
certain conditions of the policy by giving due
weightage to
Incentives for • Investment
Manufacturing • Direct/Indirect employment generation Manufacturing
sector • potential for attracting further investment

• For expanding business also incentives are

provided, the benefits are provided based the
years of existence in the state

• Capital Subsidy and Electricity Tax Exemption -

based on employment and investment in fixed
assets
Standard
• Stamp Duty concession - for projects located in Manufacturing
incentives
Industrial parks
• Environmental Protection Infrastructure subsidy –
for setting up waste disposal facility
Subsidy for
Quality • Reimbursement of expenditure for getting BIS, ISO
certification / 9000 / 14000 or any other national or international All sectors
Patent certification or patent registration
registration

http://nmsa.dac.gov.in/ 5. http://agri-insurance.gov.in/Login.aspx; http://www.projectstoday.com/WeekAtGlance/Punjab-Telangana-to-get-

mega-food-parks ;Indiamart.com ;Supportbiz ; http://nmfpodisha.nic.in/ ; http://www.digitalindia.gov.in/ ;http://www.ciol.com/electronics-
development-fund-will-boost-esdm-start-ecosystem-iesa/ ;http://www.ncflexe.in/ ;http://www.electronicsb2b.com/ ;
http://mhrd.gov.in/rashtriya-avishkar-abhiyan; http://www.pmkvyofficial.org/ ; ddugky.gov.in ;www.orissadiary.com 19.
http://www.yarnsandfibers.com/ ; start up India ; standupindia ; hridayindia.in ;Dcmsmse
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Incentives for
Research and • VAT rebate is provided on Capital goods for R & D
All sectors
Development facilities
Facilities
Structured
• Depending on the investment range, fiscal
package of Manufacturing
incentives are provided as investment promotion
incentives
Karnataka
Type Description Sector/Industry

• Floor Area Ratio (FAR) has been increased in

industrial areas
Land Manufacturing
• Regulatory procedures are simplified for industrial
land purchases

• Reimbursement of expenses for setting up of Rain

Green Industrial water harvesting, Environmental and Water audit,
MSME
Growth Wastewater treatment and reuse facilities. These
are mandatory

• Promotion of technology up-gradation in

manufacturing sector in the state
Technology up-
• Technology transfer programmes will be run to MSME
gradation scheme
create shelve of projects with specific emphasis on
export orientation

Incentives for R & • Capital subsidy is provided on Capital goods for R Manufacturing and
D Facilities & D facilities allied

• Anchor unit subsidy for early birds

• Exemption from stamp duty & concessional
registration charges
• Exemption from electricity duty / tax for aerospace Defence and
Special Incentives
units Aerospace Sector
• Interest free loan on VAT
• Reimbursement of CST over a period
• Entry tax exemption for aerospace units

• A venture fund has been set up for specifically Automobile,

Special Incentives focused on boosting MSME Pharmaceutical
• Grant for setting up Effluent treatment plants Pharmaceuticals

Special thrust for

• Additional market development assistance to
encouraging
entrepreneurs availing incentives under
SC/ST, Women,
Government of India programme for Trade Related MSME
Minority, PH and
Entrepreneurship Assistance and Development
Ex-Servicemen
Scheme for Women
entrepreneurs

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Promotion of
Khadi, Artisan • Power subsidy, subsidy on working capital loans Handicrafts
and Coir sector
Andhra Pradesh
Type Description Sector

Land Land is being allotted for 99 years of lease All sectors

GoAP has set up Andhra Pradesh State Skill
Development Corporation (APSSDC)on lines of the
Labour and Skill National Skill Development Corporation (NSDC),
All sectors
Development The objective is to
• Generate additional employment
• Promote skill development

Investors who are eligible for Central subsidies for

Fiscal Incentives All sectors
setting up in AP

All Manufacturing
units
Incentives for
• Stamp duty – one time reimbursement of expenses Apparel, Food
Large industry
• VAT/CST/GST concession for a period of time processing,
units and MSMEs
Biotech,
Automobile

Assistance are provided to foreign investors to attract

more FDI.
They provide assistance in:
• Provide bespoke investor facilitation
International Desk All sectors
• Handholding services in the form of local
information and expertise
• Comprehensive portal with business opportunity
related information

• Zero rated category schedule of the VAT Act -

Incentives for Providing Encouragement to companies engaged
Manufacturing
Swachh Andhra in recycling waste into environment friendly
products, Bio gas industry, etc.

• Special incentives are provided to SC/ST

entrepreneurs, BC entrepreneurs, women
Special package
entrepreneurs like Stamp duty exemption, rebate All sectors
of incentives
on land, power rate exemption, Seed capital
assistance
Maharashtra
Type Description Sector/Industry

• Customized package Scheme of incentives

Promotion of
• Additional incentives to projects providing twice
Ultra Mega/ Mega Manufacturing
more employment opportunities than committed
Projects
• Providing higher exemptions on case to case basis
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 Study on Investment Potential in Kerala

• Industrial Integrated cell to simplify procedures

• Exemptions are provided for a period of time –

Promotion of Industrial promotion subsidy, Water and energy
Manufacturing
Large Scale audit, Stamp duty exemption, Power duty
Food Processing
Industries exemption,
• Additional benefits

• Package of schemes are provided to MSMEs to

promote higher growth of industries
Incentives for • These includes - Industrial promotion subsidy, Manufacturing
MSMEs Water and energy audit, Stamp duty exemption, Food Processing
Power duty exemption
• Additional benefits

Promotion and Facilitation centre for

• Investment raising
• IEC activities
Industrial
• Setting promotional events All Sectors
Integrated Cell
• Project Consultancy
• Foreign investors cell
• Investor after care cell - Hand holding activities

Gujarat

Type Description Sector/Industry

Plastics
Industrial Infrastructure
Focus Sectors Specialty and fine chemicals -
Auto and Auto Components
Food and agri Business

Various sector specific promotional incentives

Incentive Separate incentives for MSME
All
Packages • Special scheme incentives for startup and
innovation

• Promotion of labour intensive industries

Human Resource • Support to young entrepreneurs All
• Special centers for skill enhancement

• Ease of Doing Business initiatives

Business • Centralised clearance system
All
ambience • Business development initiatives
• Business facilitation centres

• Thrust for large and mega projects

• Support for Industrial and connectivity
Infrastructure Infrastructure All
• Enhancement of facilities in environmental
infrastructure

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Table 6: Policy/Incentives offered in various sectors at State level

Existing policy framework of Kerala

Sector/
Name of Policy Policy Objectives
Sub-sector
Ensuring quality visitor experience, focus on benefits
for the community from tourism, enabling
environment for investment, marketing Kerala as a
Tourism 2012 Tourism
visible global brand in domestic and international
markets, Developing quality human resources in
tourism and hospitality
Vision of the policy is to transform Kerala into a
Kerala Industrial & vibrant entrepreneurial society through inclusive,
Commercial Policy Industries ecofriendly and sustainable economic growth. The
Amended - 2015 policy gives boost for industries of agriculture and
traditional manufacturing sectors
Vision of the policy is to make Kerala as the No1.
Kerala Technology Startup
IT Destination in India for startups and amongst the top
Policy, 2014
5 startup ecosystems in the world
The policy envisions to make Kerala as one of the
Information Technology most preferred IT investment location in India. Also
IT
Policy 2012 envisages to improve citizen service delivery through
integrated eGovernance framework
The labour policy aims at creating a peaceful work
environment, increasing productivity while protecting
Labour Policy All sectors
rights of workers and to create a cordial relationship
between the owners and workers
The policy goal is to develop a dynamic and
Sports Policy, 2015 (Draft) Sports innovative culture that promotes and celebrates
participation and excellence in sports
Vision is to brand Kerala as Global Capital Of Ayush
Kerala Ayush Health systems for health care delivery, academic excellence,
Health
Policy, 2016 and research and quality drug industry by the year
2025.
Policy aims to provide quality healthcare to general
Health Policy Kerala, 2013 Health public through its referral network and maximizing
efficiency at reduced cost
Kerala Small Hydro Power Power The main objective of the policy was to enhance
(SHP) Policy 2012 contribution of small hydro projects which will
ultimately contribute in increment in installed capacity
Kerala Agricultural Agriculture Major objective of the policy is optimum and
Development Policy, 2015 sustainable use natural resources. Also encouraging
farmers in using modern farming techniques and
ensuring flow of cash to the agriculture sector
The organic farming policy seeks to make Kerala’s
Kerala State Organic
Agriculture farming sustainable, rewarding, and competitive and
Farming Policy, 2008
ensuring poison-free water and food to every citizen.

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Sector/
Name of Policy Policy Objectives
Sub-sector
The main objective of the policy is to meet challenge
National Policy for Skill of skilling with speed, standard, and sustainability.
Development and All Sectors It has identified a skill gap of 1097.3 Lakh resources
Entrepreneurship 2015 (incremental human resources) requirement in India
alone in 24 key sectors by 2022
National Intellectual Major objectives of the policy are IPR awareness
Property Rights (IPR) All sectors creation, generation of IPRs, service oriented IPR
policy 2016 administration, Commercialisation of IPR
Increase manufacturing sector growth to 12-14% over
National Manufacturing
Manufacturing the medium term to make it the engine of growth for
Policy 2011
the economy.
Table 7: Key policies of Kerala

Key takeaways for the state

• Government can provide incentives for the new business ventures by evaluating investment,
employment generation and future growth envisaged.
• Capital subsidy can be provided for manufacturing/engineering firms
• For promoting startups in all thrust sectors more than IT following may be considered
• Exemption from stamp duty & concessional registration charges
• Exemption from electricity duty / tax for aerospace units
• Interest free loan on VAT
• Reimbursement of CST over a period
• Entry tax exemption
• For encouraging new and innovative ventures, subsidy may be provided for patent registration,
national and international accreditation
• Steps may be taken for promoting handloom and handicrafts sector
• As part of Haritha Keralam incentives may be provided to companies taking measures for recycling
the waste into environment friendly products
• As Kerala has long coastal line, special boost may be given for port led manufacturing and ship
building activities

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 Study on Investment Potential in Kerala

Brand landscape of Kerala

They key brands of Kerala were assessed and the top performing sectors of Kerala were identified.

Figure 12: Brand Landscape of Kerala

Source: Dhanam Publication “Hot Brands of Kerala” Vol-I, 2016

Manufacturing, Banking and finance, Tourism an hospitality, IT, Food processing, Healthcare and
Gems & Jewellery are the key sectors where popular brands emerged.

Sector Assessment
The sectors of the state were identified based on contribution of primary sectors of the economy to
the state GSDP. Further sub-sectors were listed which are of relevance in the Kerala context.

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 Study on Investment Potential in Kerala

Sector assessment framework

Figure 13: Sector assessment framework

Sector listing

Sector Sub-sector Industry

Agriculture Production Rice
Agriculture Production Mango
Agriculture Production Banana & Arecanut
Agriculture Production Cocoa
Agriculture Production Pepper & Cardamom
Agriculture Production Nutmeg
Agriculture Production Coffee
Agriculture and Allied Agriculture Production Tea
Activities Agriculture Production Rubber
Agriculture Production Coconut
Agriculture Production Cashew Nut
Agriculture Production Palm Oil
Agriculture Production Tapioca
Agriculture Production Turmeric & Chillies
Agriculture Exports
Marine Marine Production & Exports
Mining and Quarrying Minerals & Mining
Agriculture Equipment
Manufacturing Automobile Production Automobile assembly
Automobile Production Auto components
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Sector Sub-sector Industry

Textile Technical Textiles
Textile Handlooms
Textile Handicrafts
Chemical Industry
Engineering
Shipbuilding
Drugs and Pharmaceuticals
Wood Timber Processing
Wood Furniture Making
Wood Plywood industry
Coir Coir based products
Food Processing Fruit & Vegetable Processing
Food Processing Dairy Processing
Food Processing Marine Processing
Food Processing Rice Brands
Food Processing Oleoresins
Food Processing Instant Food Products
Bamboo Bamboo based Products
Rubber/Rubber-based Tyre
Rubber/Rubber-based Footwear
Rubber/Rubber-based Others
Electronics
Construction Materials Cement
Gems & Jewelry
Electricity, Gas, Water Power Generation
Supply & other Utility
Renewable Energy
services
Construction Construction
Tourism
Trade, hotels & Tourism Hotel
restaurants Tourism Restaurants
Travel Travel and tour operators
Transport/Logistics Road
Transport/Logistics Water (Costal/Inland)
Transport, Storage & Transport/Logistics Air
Communication Transport Rail
Storage
Communication Telecom
Communication Infotainment
Financial Services Non-Banking Financial Services
Healthcare Service delivery
Other Services Healthcare Insurance
Healthcare Medical Equipment

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Sector Sub-sector Industry

IT & ITES Software development
IT & ITES Hardware support
Education
Skill Development
Beauty & Wellness
Bakery & Confectionery
Table 8: Sector Listing

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 Study on Investment Potential in Kerala

Sector Assessment – Key Findings

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

In the FY 2014-15,
The rice production
Kerala had
was worth 900 Cr in
revenue of ~INR
FY15, compared to
30000 Cr from Opportunities in
neighbouring states
Agriculture The agriculture agricultural sector
the potential is low The cultivable land
Agriculture & cultivation. growth pace is are good, with
1. Allied Production is reducing every
minimal with CAGR Kerala was in first supportive
Activities year
0.5% (2010-15) position in Coconut government
Agriculture schemes
cultivation, but now
contributed 5% to
Tamil Nadu and
Kerala's GSDP
Karnataka have
surpassed Kerala

Opportunities for
scientists,
engineers,
Fruits, fruit pulp and More than 60 export technologists, sales
Current exports of processed fruits companies and marketing
Agriculture &
54.34 % (Since manpower
2. Allied Exports USD 252.57 Mn form the major part registered with
2005-06)
Activities (INR 1692 Cr) of exports (INR APEDA in the India has enormous
448.8 Cr) agriculture category potential as an
exporter of
agricultural
commodities

Kerala has the

More than 40 Not a highly
highest share (49%)
12% in Inland fish Marine export employment
of marine fish
production companies (as per intensive industry.
Total fish landings in South-
Marine MPEDA) Potential for
Agriculture & west region
production in
3. Allied Production & research scientists
Kerala during Indian mackerel is
Activities Exports to increase
2014 was 0.8 MT Decreasing trend in the major landed 3 Ornamental fish production of new
Marine production resources with 29% exporters (as per varieties of marine
and exports share in total landed MPEDA) catch
resources of India

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Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

Deficiency in supply
Increasing demand of qualified trained
workers like
for minerals across
blasters, mine
India and globally
mates, foreman,
surveyors

Indian mining
Scope for industry has
exploration and potential to create 6
mn additional total
production,
jobs by
capacities need to
Nearly 10 key 2025,accounting for
Mining & Minerals & INR 2587 Cr be improved 12% of the new non-
4. -0.52% players operate in
Quarrying Mining (Kerala) farm job gap
the minerals sector
Most of the M&Q
activities in the
State continue to Incremental demand
follow human of 56000-76000
intensive and Mining engineers,
14000-19000
classical methods,
Specialised skills-
opportunities to
geologists/geo-
modernise sector physicists during
especially through 2009-25 period
Technology
adoption

4 Agriculture
Indian Tractors Mechanization in Machinery Potential for
Exports value of Kerala is very low manufactures in upcoming business
INR 4354.3 Cr in compared to other Kerala as per establishments that
2015. provide farmers
12-14% Indian India states Directory of AMMA-
with specialised
Tractors and Tillers India
Agriculture farm equipment and
5. Manufacturing
Equipment but Kerala has Improved various amenities to
negligible share improve crop yield
Kerala has less availability of credit KAMCO is one of
through the
than 1% share in and focus on the largest
adoption of latest
total Indian tractor productivity is producers of Power agricultural
sales driving farmers for Tillers in India technologies can
mechanization

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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

increase potential
job opportunities
Potential for
increasing
penetration

Auto Mission plan

2006-2016 aims to
contribute over 10% Sector contributes
Indian market ~ Kerala Automobiles to approx. 7-8% of
INR 394690 Cr & to India’s GDP Ltd. is the only PSU India’s employment
exports value of Sector contributed operating in Kerala (High)
INR 71044 Cr Indian sector to approx. 22% of and has
growth rate of ~ India’s
Automobiles & international
10% over the last manufacturing GDP
6. Manufacturing Auto presence. But,
few years but
Components company ran into
minimal presence Opportunities
available states like accumulated loss of
in Kerala
Gujarat, INR 25 Cr (2014) due Demand for High
Kerala’s
to policy Precision Machining
contribution is Maharashtra and
ramifications capabilities
minimal Tamil Nadu have
(Medium)
first mover
advantages

Kerala received
order of INR 2 Cr n
Sector with high
from Tamil Nadu for 17 operating textile
12% in India employability and
stabilizing 50 km mills in Kerala
diverse skillsets
long roads with
geotextiles
Indian market size
of ~INR 1,50,000 Integrated Skill
Textile - More than 20
Cr and India total All mills of state Development
7. Manufacturing Technical players in the
textiles exports textile corporations Scheme to spend
Textile Key players in garment exports
value is at USD 40 are incurring losses INR 1900 Cr to train
Bn garments segment market. Kitex, 1.5 Mn workers
in Kerala recorded Dinesh Apparels
an average CAGR amongst leading Technical textile
of 15% Home furnishing garment industry requires
products are major manufacturers in upgradation of
exportable product the state technical skills of
manpower

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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

employed in
Garment Industry

Cotton yarn, Additional

followed by knitted Manpower
garments and requirement in India
fabrics are major is expected to reach
products 6.3 Mn by 2022

Employment
Average Earning of
7.81% in generation in this
Handloom
production of industry has got
Households in Many Handloom
handlooms in the decreasing trend in
Kerala is INR clusters in
Textile - INR 258 Cr state recent years with
8. Manufacturing 40,000/annum Balaramapuram,
Handlooms (Kerala) CAGR of -8.71%
Azhicode, Kannur,
The number of Palghat, Kozhikode Kerala constitutes
looms in operation for 0.42% of the
6.9% in exports
is in a diminishing total handloom
trend worker households

Major handicrafts
products from the
state are Bamboo
products, Coconut
coir based products,
Art-metal-ware and
wooden-art
Incremental
Kerala has seen a Demand for Textiles
decreasing trend in & Garments in the
Textile - No significant 9.47% CAGR in Largely government
9. Manufacturing no. of exhibitions tune of 19100 during
Handicrafts revenues reported exports corporations
held and financial 2012-17 period and
assistance 21500 during 2017-
22 period
KLETRON has
launched an
ecommerce portal
“kelebuy.com”
including handloom
and handicrafts
products

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Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

In India, Chemical There are seven

Employment
Production of sector contributes public sector
opportunities are
chemical products about 2% of GDP of undertakings and
10. Manufacturing Chemical 3% less in this sector,
are 10,000 MT per the nation with total three private
generating about
year production of 9600 companies as the
1000 vacancies
Metric Tonnes major players

Good growth in
High value,
Indian Engineering
technology-driven
sector due to
light engineering
increased
manufacturing is a
investments in
preferred choice for
industrial
Kerala's highly
production and
skilled workforce
infrastructure

Indian Kerala has potential

Engineering for Light Industry has
Indian sector 5 PSUs operating in
sector is worth Engineering / prospects to attract
11. Manufacturing Engineering recorded growth of Kerala in the
INR 12 Lakh Cr) Precision tool engineers if
11% engineering sector
and exports of manufacturing requisite on-the job
INR 4.6 Lakh Cr MSMEs experience and
Kerala has relatively training is provided
few engineering at colleges and
industries and are aspirations of these
very small in size students are in line
when compared to with job offerings in
such units in other the engineering
industrially space in Kerala
developed states

Kerala is one Indirect potential of

amongst the 4 shipbuilding
major centres for industry in
Cochin Shipyard
shipbuilding employment
Limited (CSL) is one
Indian industry generation and
of the major
12. Manufacturing Shipbuilding market of INR 2-3% Cargo traffic at contribution to GDP
shipbuilding and
8708 Cr Indian ports is high as industry
maintenance
growing at about 8- has spin offs to
facilities in India
10% YoY in last few other industries,
years including steel,
engineering

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Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

equipment, port
infrastructure, trade,
shipping services
etc.

Huge investments
by GoI for
development of Inadequate skills &
Ports and Water Tankers; Bulk infrastructure
ways – increasing carriers; Platform availability for
the potential for supply vessels; conducting
Cochin Shipyard
ship building Patrol boats; Diving research.
Annual revenue ~
support vessels are Shipbuilding sector
INR 1942 Cr Huge capital the major products has an average
investment and manufactured in 1500-2000
absence of a strong Kerala employees for a 1
ancillary industry Million Ton facility
poses major
challenges

Kerala has the least

number of Drug
inspectorate (47),
manufacturers (87)
and Pharmacies
(15000) 12200 and 13100
Incremental demand
In order to bolster
Drug processing manpower
the capacity of drug There are 90 Drug
Drugs and capacity of the requirement in
samples/annum, manufacturing units
13. Manufacturing Pharmaceutical Kerala State Drug Chemicals &
Kerala has opened a registered in Kerala
s lab is 5000 – 6000 Pharmaceutical
new drug testing as per KDC
Samples/Year industry in 2012-
facility at Thrissur
2017 and 2017-2022
Percentage of drug period respectively
expenditure to
overall health
expenditure is
highest for Kerala
(13% ~ INR 31 Cr)

INR 8373 Cr 15.4% CAGR in Demand for timber Approximately 600 Forest-based
Wood - Timber
14. Manufacturing market of Indian Timber exports of in India is about 123 timber processing industries are job-
Processing
Timber India million cu.mts while units are currently intensive compared

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Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

Processing supply is only 68 mn functioning all over with other industrial

Industry cu.mts the country sectors and largely
falls in small-scale
Kerala produces informal sector
about 17540 Cu.
Mts of timber Demand for timber
Most of wood from
(2012) in India is about
forests in Kerala
123 million cu.mts
Kerala’s wood (82%) is used as fuel
while supply is
imports are worth (Low)
only 68 mn cu.mts
about Rs.1,500
crore annually

Malappuram
The southern state Ernakulum Kerala accounts for
of Kerala produces Taliparamba are 6.41% employment
95 % of the total important wood in Furniture making
supply of rubber furniture industry with ~ 1.4
wood in India manufacturing lakh employees
Kerala has around zones
10,000
manufacturers Proposal of the
and merchants. Of newly constituted
these, at least Zamorin’s Furniture
Demand for
4000 are Consortium to set
furniture in India
manufacturers up a world-class Deficiency in skilled
Wood – surged at 12%
with the majority Common Facility labour
15. Manufacturing Furniture annual rate over
being micro- Centre at Kozhikode
Making 2007-2012, and in
enterprises. The has consent from
2013 it increased at There are large
rest are traders Central and State
a rate of 15% number of Furniture
and distributors, governments
some of whom manufacturers and
also manufacture, Kerala is a key state retailers in Kerala Zamorin’s Furniture
but all do not own for Wooden home Consortium aims to
showrooms furniture which is provide quality
the biggest segment training for over
1,200 craftsmen
High-end home every year in the
furniture is a production and
potential segment designing of
furniture products

Wood - Indian plywood 5.5% in India’s Demand for Large number of Huge number of
16. Manufacturing
Plywood industry is INR Exports of plywood is at an plywood migrant labour in

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Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

5,000 crore Plywood, veneered increasing trend. manufacturers and the workforce which
equivalent panel and similar However, increased traders (~200-300 in largely comes from
laminated wood difficulty to find new total) presence in Assam, West
land for new Kerala Bengal, Orissa,
industrial units Bihar and also from
Bangladesh. Migrant
Maximum utilization labours are causing
of existing facilities significant
is also causing challenges for many
serious players with respect
environmental 85 plywood to Housing of
issues manufacturing migrant labours ,
India export value Occupational Health
While the total industrial units are
of INR 160 Cr and other Labour
quantity of wood functioning in
Ernakulam district issues associate
processed may be
with migrant labour
massive, the
individual size of the
industry still
remains small

Coir Board “Golden

Fibre Plus” scheme
in Cherthala -
Kerala Coir Coir is the largest
Modernization of
products Exports - cottage Industry in
coir industry
INR 6.45 Cr Kerala
through flow of
Total number of credit to workers
coir units in Kerala
registered with Coir
Board of India Coir industry is a
increased from Total private sector labour -intensive
Coir-based 8790 coir units in
17. Manufacturing India accounts for 8649 units in 2009 units registered with industry which
products 2013
more than two- to 8790 units in Coir Board was provides
thirds of world 2013. However, % highest for Kerala in employment to
production of coir share to national 2015, (8811) more than 7,00,000
and coir products count is at a accounting for 58% persons in India
decline share. majority from rural
areas

In India, 8 % of Kerala is the home Provide ample

the coir and coir of the Indian coir opportunities for the
products are industry, particularly development of
exported to white fibre technology also
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Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

foreign countries accounting to 61 % facilitating transfer

and remaining 92 of coconut of technology
% is domestically production and over
consumed 85 % of coir and coir
products

Coir units are

unable to compete
with other small
scale industries due
to non-availability of
modern technology

Two thirds of
Kerala’s total export
INR 250 Cr 17% Food processing is
income comes from There are nearly
processed food an important sector
1,274 food
in value addition
Domestic processing units in
and employment
consumption of Kerala alone
generation.
processed fruits is
low

Government of India
Food target of raising the Good scope of food
Processing – share of processed technology courses
18. Manufacturing
Fruit & Food processing in food in total food which offer
vegetables Exports value INR Kerala is one of the basket to 10 % in numerous job
KINFRA Industrial
247 Cr fastest growing 2015 and 25 % in Parks at Nellad & opportunities in
sectors 2025, from the Malappuram are various areas.
present 1.3 % prominent food
processing zones of Food technologists,
Quality and safety Kerala technicians, bio
issues is key to
technologists and
become a successful
engineers are
player in this
required in this
industry
industry

Kerala exported Availability of high Increased growth of

20% of India’s total
Food 550 Tonnes of quality water and the dairy industry
3.0 % CAGR in Milk milk is further
19. Manufacturing Processing – dairy products power, an active has created demand
Production processed by
Dairy during the year local market and a for indigenous
organized sector.
2015-16 very large expatriate production of dairy

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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

community ensures equipment's,

a captive market increased quality
abroad for Kerala standards and
production of
various milk
products

Growing domestic More than 3600 co-

demand for safe, operative societies
nutritious milk are registered in Vast career
products Kerala opportunities for
Overall exports of
Technical good dairy
INR 17 Cr from Presence of many
innovation in milk engineers to run
India Milk product
processing is a dairy plants
manufacturers and efficiently
necessary growth
distributors in
driver for the
Kerala
industry

Availability of raw
materials, especially
sea food

Frozen Squid and

Marginal increase Cuttle account for
in total fish major share of 358 Dried/Salted
production during exports Fish Handling
2010-14 period; Centres
CAGR of 1.6% Increased demand Pre-processing job
for processed and skills needs
Food Kerala export
ready-to-eat marine upgradation which
20. Manufacturing Processing – revenue of INR
products in is largely
Marine 5166 Cr in 2014-15
domestic and constituted by
foreign market women

State with highest

Significant increase Dried/Salted Fish
in value of product Handing capacity
exports over 2010- 50210 Cold Storage
14 period - 26%. Marine products facilities
However, Kerala lead list of food
share reduced from products exported
from the State

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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

18% in 2011 to 15% Ornamental Fish

in 2014 Exports has
increased high value
potential

India Exports
Basmati rice Kerala is one of the
worth INR 30,000 largest markets for Large presence of
Cr and Non- Domestic basmati branded/ processed rice millers in Kerala New units set-up
Basmati worth demand has been rice in India would require
INR 22,341 Cr growing at 15% in additional resource
Food
India Packaged volume terms as Government of India requirement.
21. Manufacturing Processing –
rice industry - INR branded products has set a target of Periyar, Pavizham, However, matured
Rice Brands
15,000 Cr. are accepted more raising the share of Nirapara, Double technology
with growth of processed food in Horse, Nilavilakku demands less of
Basmati accounts food retail the total food basket Rice amongst the new skills
for 75% of to 10 % in 2015 and top rice brands of
branded rice 25 % in 2025, from Kerala
market the present 1.3 %

The Synthite
The Indian spice
~15% Growth was 70% of Global commands 30% of Skilled job
Food oleoresin market
22. Oleoresins shown from 2009 Production is from the Global market, requirement is there
Processing is about INR 600
to 15 India and more players in the market
crores.
are coming up

As per new Kerala

Industrial policy
food processing is
The number of
Kerala has ~ INR among the thrust Total number of
registered food
Kerala accounts 5500 per capita sectors people engaged in
Food processing units in
23. Instant Foods for ~20% of total expense on food Spices, cashews, food processing
Processing 2004 was 300 and it
food exports which highest in the marine foods, tea, industry in Kerala is
has grown 2300 in
country coffee, coconuts, ~14.5 Lakhs
2015
fruits are the major
food processing
items

Kerala’s demand Thrissur city has

India’s share in In the year 2013-14
market of ~20% of around 2500
Gems & the global Growth rate of this Kerala contributed
24. Manufacturing total India market household units
Jewellery jewellery trade is industry is 5.4% 30% of total exports
Major players in employing about
5.6% of India.
India is from Kerala 30,000 persons
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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

Unique feature of
the Kerala bamboo 25,0002 weaving
industry is that 67.3 families are
Bamboo is a % of the extracted dependent on State
major export item bamboo comes Bamboo corporation
in India, with a from home gardens
global market Gaining
Kerala Bamboo Fest
valued at INR prominence with 554 bamboo units
Mats and baskets - platform for
Bamboo-based 50,000 Cr increased registered with
25. Manufacturing are two important beneficiaries to
products marketing efforts of Kerala state
products catering to widen market and
State Bamboo Bamboo mission
house-hold industry acquire new product
Mission
development info

Traditionally a large
Kerala produced Furniture and number of artisans
2,20,000 Tonne of interior products are are dependent on
Bamboo in 2014 gaining popularity bamboo craft for
their livelihood

Tyre export was in

decreasing trend
during 2015-16 due
Indian tyre demand New units require
to pressure from
grew at 4%-5% huge manpower
low-priced Chinese
during 2015-16 requirement
Apollo Tyres Tyres, resulting in
(annual price cuts across
consolidated reve industry segments
nues of Rs 117.1
Indian Tyre Imports
billion (USD1.8
fell from 17% (FY Tyre industry facing Apollo Tyres , MRF
billion) in March
Rubber-based – 2015) to 12% (FY), substantial growth Tyres and Tollins
26. Manufacturing 2016) and Tollins
Tyre again due to inflow due to surge in Tyres have a
Tyres are Kerala
of Chinese tyres in automobile demand presence in Kerala
based Tyre Mature market
various market
companies. Other technology.
global players Tollins Tyres Availability of skilled
have presence in Indian tyre (Ernakulam based workers not a major
Kerala Revenues saw company) is the first challenge
decrease of 2%. Indian brand to
Prices of Natural survive in the tough
Rubber fell by 15% market supplying to
during 2016 the US market as
well
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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

Indian Domestic Increased

Footwear Industry employment
estimated to be opportunities for
INR 20,000-25,000 women in the
90% of states Out of the total 125
Cr footwear
manufacturing units footwear production
manufacturing
depends on local units, 85 units were
industry as it
Kerala market size market in Kozhikode
Growth of Indian involves a lot of
is estimated at processes that can
footwear sales
Rubber-based – INR 700 Cr be handled by
27. Manufacturing increased to 17% in
Footwear women
2015, compared to
16% in 2014 Manufacturers Footwear design
based in Kozhikode Paragon, VKC, offers a wide range
is emerging as the Odyssia, Premier, of bright
Exports in India
second non-leather Lunar, Doc & Mark, employment
valued at INR
footwear hub after CEE VEE, Hywalk PU opportunities in
2847 Cr in 2016
Delhi, recording an and Stylo are few of technical, designing
132% rise in the Kerala brands and management
business area

Kerala has Maximum number

Indian Rubber
highest number of Indian Non-tyre of units are into Kerala has the
products industry
rubber products rubber moulded goods, highest number of
Rubber-based - consists of ~4500
28. Manufacturing manufacturing manufacturing tread rubber rubber products
Others units generating
units (~900) and sector saw CAGR products, dipped manufacturing units
about 5.5 Lakhs
major units are in of 9.8% goods and (~900)
direct jobs
MSME sectors adhesives

Green Field
Indian Electronic Electronics Proposed
Hardware INR Manufacturing Electronics hub in
171000 Cr clusters are being Key players are Kerala would
setup in Ernakulum KELTRON, TELK, require science and
12% TRACO, Startup technology skilled
Indian electronics Companies village, CDAC, FCI, personnel. Quality
29. Manufacturing Electronics
and hardware increasingly BPL etc. skilled and semi-
industry expected spending on R&D skilled workers
to reach INR 8.7 and stepping up needed for the
Lakh Cr by 2018 innovation industry which can
be sourced from
India Exports Growth in the Increasing Many global existing engineering
account for ~20% hardware segment penetration of high- electronics majors

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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

of total 10.1% over the end electronics have a presence in and polytechnics in
production same period products such as the State the state
High Definition TVs
Electronics (HDTVs), LCDs,
industry in Kerala LEDs, and tablet
was valued at INR
670 Crore (2012)

Indian exports
value INR 968 Cr Facing challenges in
availability of the The industry has
Kerala stand 19th
main fuel coal around 65 A new 12 MTPA new
in terms of State
companies having plant is expected to
wise production
30. Manufacturing Cement 9.7% around 200 cement generate
Housing sector plants across India employment for
Kerala produced with most brands nearly 4,000
accounts for a
0.53 Million Tons available in Kerala
significant 64 % of
of cement in 2012
the total cement
(0.29% share)
demand

Renewable energy
contributes to only
8% of the total
Energy production
in Kerala

Potential for Wind

39 MW of wind (2000 MW) and Presence of solar
installed capacity Solar (500 MW) panels and grids
5-7% Innovation in
and 0.03 MW of energy however it is installation renewable energy
Power solar capacity necessary to identify companies in Kerala technologies are
31. Electricity Generation/Ren potential energy
potential area for
ewable Energy producing
new skill
geographies by
development
considering land
use patterns and
technology
constraints

Total revenue Su-Kam is bringing Suzlon Energy plans

Energy demand is
from tariff and solar power for INR 550 Cr Wind
expected to grow
revenue from technology to power project in
by 8-10% YoY for
non-tariff income various homes and Kerala

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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

estimated by the next 10 to 15 offices for meeting

KSEBL for the years their power needs
year 2014-15 is and has total
INR 9126.41 Cr capacity of over 600
KW in 14 districts

10,000 rooftop solar

power plants
programme by
ANERT was
launched in Kerala

High contribution Limited manpower

High potential as
to GSDP at 16% as availability and high
construction
compared to cost of Land
industry in the state Large presence of
national average of acquisition posing
is in a growth stage home builders,
8-9% challenges
contracting
32. Construction Construction INR 56051 Cr Incremental
companies, Luxury
Commercial home builders etc. manpower demand
20% CAGR. High
Integrated projects in Kerala by construction
CAGR compared to
(Large retail market) sector - 298000
most Indian states
evolving in Kerala during 2017-2022
period

In last three years

state has provided
hosting for more
than 250 Lakhs
More than 45,000
domestic and
CAGR of earnings 4762 hotels in manpower
foreign tourists, and
14.75% Kerala employed in Indian
Tourism/ Hotel/ INR 25,000 Cr have generated
Trade, Hotels Tourism Industry
33. and Restaurants/ (Kerala revenues more than Rs.
Restaurants Tour Operators from tourism) 7,50,000 Lakhs with
an avg growth rate
of 7.53%

In 2015 12% of total Employment

Maximum number
5.13% contribution foreign tourists generated in Hotel
of restaurants are in
to GSDP visited came to Industry in FY14-15
Trivandrum
Kerala were ~ 1,85,000

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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

Total income 5.23% contribution Ernakulam, Incremental

to foreign 35 approved Kerala
generated from Trivandrum , Idukki, manpower demand
exchange earnings based tour
restaurants in and Alappuzha by sector of 34000
operators in Kerala
Kerala in FY14-15 Hotels CAGR of attracts 85% of the during 2017-2022
as on June 2015
was INR 5500 Cr 10.2% tourists period

Large presence of
national payers and
local players in
transportation
There is high segment.
potential for Multi-
As per NSDC
Transport, Logistics/ Indian logistics Mode Transport Freight movement
INR 27592.23 Cr is analysis, there will
Storage & Transport – industry grows at Operator. The through coastal and
34. the market size of be 25 Million skilled
Communicatio Road, Coastal, the rate of CGAR of technology inland
logistics industry job requirement in
n Inland, Air 10% intervention will transportation has
next five years
provide more growth rate of 29%
opportunity
Logistics industry
contributes more
than national
average to GDP

In wireless market -
Idea leads the Indian telecom
market with 30%, industry has the
1.51% followed by potential to
Vodafone and BSNL generate 40 Lakhs
Transport,
Telecom subscriber with 22% market job in five years
Storage &
35. Telecom INR 8500 Cr base in Kerala is 366 share. Incremental
Communicatio
Lakhs manpower demand
n
Wired line is in by communication
decreasing trend In wired line BSNL sector - 275000
has 95% share during 2017-2022
Wireless is in a period
positive trend

Transport, Among all regional Indian media & There is a high

Storage & channels Malayalam Entertainment demand of skilled
36. Infotainment INR 8225 Cr CAGR – 12.47%
Communicatio viewership has 5.6% industry was worth people for TV,
n share USD 19 Bn in 2015 animation media

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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

As the food There are multiple

As the demand for
Transport, processing sector is players in this
storage facilities are
Storage & booming in Kerala, segment. There are
37. Storage INR 196 Cr CAGR of 7.6% improving the job
Communicatio there are high around 3000 players
opportunity also has
n potential for storage in this industrial sub
potential
segment segment

As Kochi Metro rail As railway is a

is in place ,and there public sector
Transport, is a possibility of segment, there are Low job potential
Storage & mono rails at no opportunity for Kochi metro
38. Rail INR 1,345 Cr CAGR – 1.86%
Communicatio Thiruvananthapura private sector other demands skilled job
n m, and Kozhikode. than in support and requirement
So there is good other contracted
market potential jobs

NBFCs have ~47%

share in retail
financial market
with banks There is high
Non-Banking There are 335 NBFC has shown Private Sector
Financial demand of
39. Financial Kerala based ~28% growth rate Top performing players lead the
Services graduates in this
Services NBFCs as of 2013 in last ten years NBFC is only 5% segment
sector
less in size with the
top performing
private sector bank

Rising income and Medical value travel

health awareness can generate USD 1
to increase billion by 2020
Private sector
healthcare
contributed to 78%
expenditure of the
of hospital beds
Healthcare state (Kerala has High demand for
Total Indian Govt. has Kerala has fairly
(Service the highest per quality
healthcare market introduced various large number of
delivery, capita expenditure nurses/paramedical
40. Other Services is INR 670000 Cr initiatives to address small/medium scale
medical on health in the staff from state
the challenges of medical product
equipment, country during
medical devices manufacturing
insurance) 2014, at Rs.7,636
industry companies
against India
average of
INR3,800)

Total Indian Health Insurance Healthcare related 132 insurance Incremental

Medical Insurance penetration in India apps and brokers in the state manpower demand
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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

market is INR is only 0.7% . technology by sector of 52000

23436 Cr Growth primarily solutions are during 2017-2022
driven in order to gaining prominence period
increase in view of rapid
penetration (High) digitalization of the
sector

Around 75,000 IT
Growth of software
professionals
exports more than
working in
double of National
Trivandrum, Kochi
average
and at other centres
Four new IT parks
41. Other Services IT & ITES INR 12000 Cr 25% Kerala is poised to operating across the
be a key investment state Incremental
hub due to rapid manpower demand
development of by sector of 91000
infrastructure, high during 2017-2022
literacy rate and period
favourable policies

International
International School
Schools - Indian
- Only 13
International International School
international
School market is IB schools have -State with highest
schools in the state
emerging market grown in ~14% NRI population and
(partial affiliation
and is estimated remittances Incremental
with IB - 2 & CIE -
to be ~INR 2,500 manpower demand
11)
Cr of 193000 during
42. Other Services Education Per capita GSDP is 2017-22 period
Higher Education Higher Education - (Education and Skill
at par with best
- Kerala has Majorly small to Development
performing states
around 40 medium sized Services)
Higher education and spending
colleges per one players focusing on
growth driven by capacity is high
lakh population single stream
Govt Higher Education -
with Gross No private
High spending
Enrolment Ratio university (Large
capacity of
(GER) of 27% players) in the state
population

19 – 20 Lakhs Skill Creation - High Reskilling of 1.2 Mn

Current skilling Skill creation - Large
Skill Incremental Volume – Low workforce who have
43. Other Services capacity of 16 number of existing
Development workforce Margin model (12 % returned from
Lakh per annum Large to Small size
requirement - 16 % Margins) Middle East is a key
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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

players: Low cost of challenge and a big

entry opportunity for
Kerala (Very High)
Skill enhancement -
Very few existing
players with
Skill Enhancement - dedicated COE for
Skill enhancement Low Volume- High advance training
Skill enhancement
- Nascent Market Margin model (20 % and Research
- 25 % Margins) targeting Industry
and corporates:
Higher initial capital
investment

Employees in
beauty and wellness
Kochi is home to
industry are usually
the largest number
sourced locally.
of high profile
Workers from Kerala
salons and spas in
are preferred for
the state
rejuvenation
services

Besides beauty
treatments, hair
treatments, hair
Presence of large
styling, many
number of beauty
Indian Beauty and salons offer services
Other Beauty & parlours, Spas, Over 50 % of the
44. Wellness amounts 17.5% like clothing
Services Wellness Luxury salons and workforce are
to INR 1 Lakh Cr consultations,
of national and women.
makeup lessons and
international brands
jewellery advice
based on the
requirements of the
client

Employment
expected to grow at
a CAGR of 20%, with
International majors
23% in organized
open salons in state
and 15% in
unorganized
segments

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 Study on Investment Potential in Kerala

Sl. Existing Market Competitive Potential Job Overall

Sector Sub-segments Growth (5 years) Market Potential
No. Size Landscape Capabilities Rating

Estimated current Kerala Bakery

Indian market INR business has been
5000 Cr on a growth track Bread & Biscuits Around 60% of
for many years hold 82% revenue production takes
with surge in share in bakery place in the
Indian exports growth in the products unorganized sector Around 10,000
INR 1289 C recent years with bakery units in
15% CAGR Kerala employ more
Bakery industry than 1 lakh people
Changing lifestyles, both directly and
mainly popular in Of the total 50,000
About 50% of this increased indirectly
the states of bakeries in the state,
bread segment is consumption of
Andhra Pradesh, only 5-10 per cent
organized, at a ready to eat bakery
Maharashtra, are in the organised
rapid rate of 14- products in urban
West Bengal, sector and the rest
15% per year households main
Bakery & Karnataka, Tamil are micro units.
45. Other Services drivers
Confectionery Nadu and Kerala

Around 20,000
Kerala cake unorganized
industry bakeries are
registered a functioning in the
turnover of INR state, comprising Up gradation of
Revenue realization
900 crore small units, cottage skills required in
Cakes and pastries in cakes and
and household type unorganized
are growing at pastries unit volume
bakeries about
Increase in around 18-20% per is higher due to
advanced
domestic sales year higher value
manufacturing
and the huge addition 40 % of production practices
demand for takes place in
Kerala-baked unorganized sector
cakes in Europe
and Gulf regions
Table 9: Sector assessment – Key Findings

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Detailed Sector Assessment
Agriculture and Allied Activities

Agriculture plays a vital role in Kerala’s economy. A major portion of the rural households
depend on agriculture as their principal means of livelihood. Agriculture, along with food
processing, is one of the largest contributors to the Gross Domestic Product (GDP) of the State.
In order to tackle the labor shortage problem in farming sector and to reduce the cost of
cultivation, mechanization has been adopted by the state and a number of plan schemes were
formulated by both State and Central Governments in this regard. The sector faces issues
pertaining to the small farm sizes due to which farmers often cannot afford mechanization.
Hence, the sector has a long way to go with respect to increasing productivity by adopting new
cultivation models and imbibing latest techniques to increase yield from agricultural produce.
With the onset of organic farming revolution, the sector is likely to build in sustainability to the
existing farming systems inviting many entrepreneurs to this space. However, Kerala is doing
well in certain cash crops and horticulture produce that is supporting growth of food processing
industry which is poised to enter the path of high growth trajectory. Kerala is the major producer
of Spices, Cashews, Coconuts, Cocoa, Coffee and Tea and Fruits like Banana and pineapple.
Kerala accounts for 97% of country’s pepper production, 70% of Cocoa production, 25% of Coffee
production, 42% of Coconut and 16% of Cashew production. The agriculture sector in Kerala is
expected to generate better momentum in the next few years due to increased investments in
agricultural infrastructure such as irrigation facilities, warehousing and cold storage. Factors
such as reduced transaction costs and time, improved port gate management and better fiscal
incentives would contribute to the sector’s growth.

Agriculture Production
1. Rice 13

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Palakkad
INR 903 cr -3.0% -
USD 29.12 mn
Alappuzha

<This space is intentionally left blank>

13
KPMG in India analysis 2016, www.agriexchange.apeda.gov.in
© 2016 KPMG, an Indian Registered Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”),
A Swiss entity. All rights reserved.
62
 Study on Investment Potential in Kerala

Annual production of Rice in India Area under paddy cultivation in

and Kerala ('000 tonnes) Kerala (hectares)
10000 300000
831.3 917.9 933.5 966.9 991.8 890.9 959.8 1053 1052.4 1065
280000
1000 275742

India 260000 263529

100 234265
240000
Kerala
6.70 6.30 6.40 5.30 5.90 6.25 5.20 5.70 5.10 5.10 228938 234013
10 220000
213187 198159
208160
200000
1 197277 199611
180000

Kerala is showing a steady decline in rice production while rice production in India has shown a
CAGR of 2.8% in the last decade. The average farm price of rice was INR 1613 per quintal in 2015.
The rice industry is facing seasonal shortage in labour supply due movement of workforce to
other sectors. High cost of labour is another challenge. Productivity of rice in Kerala is about
2837 kg/hectare which is lower than large states which is usually 3200 kg/hectare resulting in
high cost of cultivation. Area under rice cultivation has been decreasing due to urbanization (land
cost increase) or due to alternative choice of cultivation of other commercial/cash crops.

2. Mango

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Kannur
INR 1085 cr -1.1%13 - USD 2.7 mn
Kollam

Annual production of Mango in Area (hectares) and Production

India and Kerala ('000 tonnes) 600000 (tonnes) of Mango in Kerala

18002.4 18505.3 500000

15200 511131
15188 400000 460424 457067

12750 India 408143 434129

373168
10200 300000
Area
11829.7
200000 Production
5200 Kerala 87965
69482 63751 75559 77158
100000
485 445.423 392.916 380.859 441.033 434.129 77301
200 0

The production of Mango in Kerala shows a declining trend up to 2010-11 and then a slight
increase upto 2014-15 with 434 thousand tonnes of production in 2014-15. Similarly area shows
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 Study on Investment Potential in Kerala

a declining trend up to 2009-10 and then an increase. Cost of production of Mango has been
increasing over the years and seasonal variations are effecting the production. The average per
quintal prices of Mangoes in 2015 was INR 2500. Due to decrease in exports Mango production
is facing challenges in Kerala.

3. Banana & Areca Nut

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Palakkad
INR 1867 Cr 1.4%13 - NA
Wayanad

Annual production of Banana Area of production of Areca Nut

in India and Kerala ('000 tonnes) in India and Kerala ('000 tonnes)
30000
India annual Production 000' Tonnes

35000 545 600 680.7 640

Kerala 650 608.72
514 515
491 26217
30000 463
439 435 500
550 481.3 478.1
26509 473.23
India
Kerala 000 Tonnes

25000 475 483

28455.1 400
406 450
20000 452.7
17646.81 300 350
15000 16608.71
12104.5 250
10000
200 105 Keral
11710.3
a
India 100 150 110 119 114 124 127 99 100 118 100 125
5000

0 0 50

While the production of Banana in India is showing a rapid growth, Kerala growth rate is slow
with production of 0.54 MT in 2014-15. Areca nut production saw a CAGR of 1.8% during 2004-
14 period with 0.13 MT production in 2014-15. However, area of production unlike other crops is
not decreasing. Due decrease in paddy production, farmers are shifting to Banana thereby
increasing the production since 2010. Also other factors such as availability and cost of labour
are also influencing the production. Since it is a common trend that Banana is usually grown
along with Areca Nut, the production of Areca Nut shows a similar trend.

4. Cocoa

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
USD 14.18 Mn
INR 50.68 Cr Idukki
0.2%13 - (Cocoa
(2012) Ernakulum
products)

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 Study on Investment Potential in Kerala

Annual production of Cocoa in India Cultivation of Cocoa in Kerala

and Kerala ('000 tonnes) (hectares)
16050 18000
15133
14436
15200 India 12900 15261
11820
14404
9250 10180
10200 13013 13183
Kerala 12488
7105 13000
5900 5850 6100 6136 6000 10708 13257
12764
12113
5200

9570

200 8000

Kerala produces almost 50% of Cocoa in India. While CAGR of Cocoa production shows a healthy
rate of 5.7% for India, Kerala is showing a decreasing trend of 0.2% CAGR during 2004-14 period
with production of 6000 tonnes in 2014-15. Cost of Labour, inefficient mechanization and global
factors influence the production of Cocoa. It is estimated that Cocoa production in India will reach
30000 MT by 2025. Kerala is poised to capture a major share of this.

5. Pepper and Cardamom

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Idukki
INR 296 Cr 2%-8.2% - -
Wayanad

Annual Production of Pepper Annual production of Cardamom

in India and Kerala ('000 tonnes) in India and Kerala ('000 tonnes)
105000 25000
20700
92900 India India 18400
20000 17800
85000
15700 15450157201600015800
87605 16900 13400
15000
69010 16000
65000 51020 40600
47400 Kerala 14000
47060 52600 10000
64264 52000 10222
48700 9765
45000 8545 8550
Keral 5000 8616 7800 7935
41952 46298 7031
45267 a
42459 40690
33991 37501 29408
25000 0

Kerala produces 95% pepper in the country. However the productivity achieved is very low in
Kerala which is only about 1/10th of the productivity of Vietnam which is the largest producer of
pepper in the world. Productivity of pepper has been steadily declining during the last decade

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 Study on Investment Potential in Kerala

with a CAGR of -8.2% during 2004-15 period. High cost of cultivation (labour, resources) coupled
with low productivity as well as low or uncertain prices is making the farming of pepper unviable.
However, Cardamom production has seen a CAGR of 5.7% during the same period with
production of 16000 tonnes in 2014-15.

6. Nutmeg

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Thrissur
~ USD 30 Mn
12.5 MT 14 26 0.16%14 Ernakulum
(2016)
Idukki

Annual production of Nutmeg

in India and Kerala ('000 tonnes) Export trend
205 202.6 16 50.00%
202.6 14.19
11.249 12.4212.4212.53 14
11.911 40.00%
200 11.361 11.269 201.7 37.73%
12
30.00%
195 10
195.8
8 20.00%
193.6
190 192.2 192.2 India 6
190.1 10.00%
2.746 188.1 4 0.56%
185
2 0.00%
Kerala
FY13 FY14 FY15 FY16
180 0 -9.50%
-10.00% -10.75%

-20.00%

Nutmeg largely grows in coastal regions equipped with fertile soil. Thrissur (33%), Ernakulam
(30%) and Idukki (15%) districts contribute to highest area under nutmeg cultivation in Kerala.
Only 10% of total Nutmeg production is being exported. Area under nutmeg cultivation saw
increase of 5% in 2014-15 over last year with 20,627 ha area under cultivation. Indian nutmeg is
discounted by 20% than the spice from Indonesia, the largest producer.14

7. Coffee

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
INR 229 Cr Wayanad USD 731 Mn
2.5% -
(2012) Idukki (India)

14
Spices Board, Nutmeg report, , www.agriexchange.apeda.gov.in
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 Study on Investment Potential in Kerala

Annual production of Coffee Cultivation of Coffee

400000
in India and Kerala (tonnes)
86000
in Kerala (hectares)
318200 327000
85359 85359
302000
288000 276600
300000 84931 85359
India 85000 84571 84696 84796 85359
275500
200000
84115
Kerala 84644
84000
10000054300 59475 65650 70550 69200
57200

0 83000

Like other agri-based activities coffee plantations are also suffering from key challenges such as
conversion of farms for production of other profitable crops such as Rubber, Pepper etc., lack of
mechanization which minimizes the cost of production, high costs of labour, pests etc. The
production of coffee in Kerala stood at 69200 tonnes in 2014-15 with area of cultivation remaining
constant during 2011-14 period. Coffee prices are also unstable due to international market
fluctuations.

8. Tea

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Idukki USD 664 Mn
INR 1152 Cr 2.7% -
Wayanad (2014) India

Annual production of Tea Cultivation of Tea

in India and Kerala (tonnes) 40000 in Kerala (hectares)
India
35010
10000000
35000 36845 37028
9860000 9790000 9800000 11000000 36131
35043
9450000 12080000
1000000 30000
30205 30205
Kerala
100000 25000

57291 62963 64900

49508 53659 51726
10000 20000

Kerala is an important tea-growing region of India, and tea is one of the most important crops in
the region. Munnar in Idukki district is an attractive destination with the world's best and
renowned tea estates followed by those in Wayanad, Palakkad and Trivandrum. There are more

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 Study on Investment Potential in Kerala

than 50 tea estates in and around Munnar. Some of the major tea estates include Kanan Devan
Hills, Harrison Malayalam, AVT tea, Michael's tea, Brooke Bond etc. These house most of the
popular tea brands such as Kanan Devan, AVT Tea etc. Munnar is also one of the biggest centers
of tea trade in India with local tea brands gaining popularity amongst tourists.

Production of tea in India for the period 2016-17 stands at 1250.49 M Kgs as against 1233.14 M
Kgs, which is an increase of 17.35 M kgs (1.41%) as compared to last year. South India
production decreased by 17.20 M.Kgs (-7.66%) of which Tamil Nadu is a major contributor with
17.82 M.Kgs (-11.03%). Kerala accounts for 5.03 per cent of the area and 6.3 percent of the total
domestic production of tea in the country. Also the state has a higher per capita tea consumption
than the whole of the country. The sector however faces various challenges due to labour costs,
cost of production and prevailing market prices. Green Tea powdered extracts are becoming
increasingly popular in the ready to drink tea market and health and wellness sector. Estimates
derived from statistics on total per capita tea consumption from the Indian Tea Board and
Euromonitor data suggest that unbranded tea products may account for as much as 56% of the
at-home tea market in India. Unpackaged tea is particularly popular in rural areas. This indicates
an opportunity for somewhere between US$ 2 and 2.5 billion in yet untapped tea sales. For
attracting rural markets through lower price points achieved through small packaging or tea dust
brands will be key.

9. Rubber

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Kottayam
INR 13677 cr -3.0% - NA
Pathanamthitta

Annual production of Rubber Cultivation of Rubber

in India and Kerala ('000 tonnes) in Kerala (Hectares)

950000 India 903700 913700

600000
852895 864500 861950
825345 831400
850000 802625 774000 549955
798940
550000 539565
749000
645000
750000 783485
800450 548225
780405 770580 539565
739225 753135 745510 534230
525408
650000 517475
690778 Kerala 500000 512045
648220 502240
494400
550000
507700
450000 450000

Similar to other plantation crops like cardamom, pepper and coconut, rubber occupies a
predominant portion of the total cropping area and agriculture income of Kerala. Due to decrease
in the price of crude oil in the international market, synthetic rubber, a by-product of crude oil is
considered as the best alternative to natural rubber for manufacturing purposes. Import of

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 Study on Investment Potential in Kerala

natural rubber experienced a steep increase in the last decade affecting the rubber prices thereby
production.

10. Coconut

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Kozhikode
- 0.2% - NA
Malappuram

Annual production of Coconut

in India and Kerala (Million nuts)
25000 23351.22 22680.03
21665.19

20000 16918.4 16942.92

15840.4 15729.75 India
14811.1 14743.56
15000
12832.9 Kerala
10000
6054 5641 5802 5667 5287 5941 5799 5921 5902
5000
6326
0
2004-05 2005-06 2006-07 2007-08 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

S Area ('000 % to all Production % to all Yield per

State
No. Hectares) India 000 MT India hectare

1 Kerala 798.2 37.4 3990.4 25.6 4999

2 Karnataka 513.1 24 4169.9 26.7 8127

3 Tamil Nadu 465.1 21.8 4760.7 30.5 10236

4 Andhra Pradesh 128.9 6 1330.4 8.5 10321

5 Odisha 54.3 2.5 262.2 1.7 4829

6 West Bengal 29.2 1.4 254.2 1.6 8704

7 Maharashtra 28.1 1.3 129 0.8 4595

8 Goa 25.7 1.2 84.5 0.5 3285

9 Assam 22.2 1 110.3 0.7 4977

10 Andaman& Nicobar 21.9 1 89.5 0.6 4088

11 Gujarat 21.1 1 221.9 1.4 10506

All India 2136.5 100 15609.1 100 7306

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 Study on Investment Potential in Kerala

About 38% of the total area under coconut palms in India is in Kerala but with respect to
production of coconut, Kerala’s share is only 26.8% due to low yield with 5902 million tonnes
production in 2014-15. Like other agri-based activities coconut farms are also suffering from
conversion of coconut farms into the production of other profitable crops, high cost of labour
etc.

11. Cashew Nut

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Kannur
INR. 53.16 cr 2.9% - NA
Kasaragod
Annual production of Cashew Nut
Cultivation of Cashew
in India and Kerala
800 100000
in Kerala (hectares)
700 757
725 753
600 695
665 653
620 613 78285
500 573 India 70463
400 544 50000 58381
53007 5405252086
300 Kerala 48972 49105
45436
43848
200
64 67 72 78 75 66 71 73 76.16 83.12
100
0 0

Productivity of Cashew in Kerala has been steadily declining during the last two decades. Cashew
is subject to international market volatility as it is export oriented. Processing of Cashew as an
industry has stagnated in the last decade. Also, labour availability is affecting the cost of
production.

12. Palm Oil

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
1
INR 32.64 Cr 0.9% - Kottayam NA

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 Study on Investment Potential in Kerala

Annual Production of Palm Oil 171354

180000
in India and Kerala (tonnes)
150000 India 138568

120000 110542

90000 73532
66353
51328 53397
60000 43965 45403
30838
Kerala
30000
5793 6478 6888 5750 7400 6600 6900 7500 7378 6303
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Global production of palm oil is around 50-52 million Tonnes of which 85% is produced by
Indonesia and Malaysia. India is world’s largest importer of edible oil and imports 60-65% of its
needs. Hence, India’s share of palm oil production is small, accounting for 0.2% share in the total
world produce. Andhra Pradesh produces 86 % of country’s production, followed by Kerala (10%)
and Karnataka (2%). Kerala produced 6303 tonnes of Palm oil in 2013-14 and cost of production
is ~$773/MT.

13. Tapioca

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Kollam
INR 5047 Cr 2% - NA
Thiruvananthapuram
Annual production of Tapioca Cultivation of Tapioca
in India and Kerala ('000 tonnes) in Kerala (hectares)
10000 95000
90539
9623 India 90000
8000 9056 8746.5
8232 8059.98076 8139 85000
7854.9 87128 87241
7236.6
6000 7462.8 80000 83990
Kerala
4000 75000
2712.114 2943
2518.999 2408.962 2479 74925 74498 75493
70000 72284
2000 69586
2400.043 65000 67589

0 60000

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 Study on Investment Potential in Kerala

Tapioca production has shown an increasing trend during 2004-13 period with production of 2.94
million tonnes in 2013-14. Tapioca has a strong potential to be the staple food across other states
if marketed well hence with adequate agriculture development policies tuned to better
commercialise the crop would boost growth of Tapioca food industry.

14. Turmeric & Chillies

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
4.2% Kozhikode
INR 54.9 Cr 7.0% - Palakkad NA
(Chilies) Thiruvananthapuram

Annual production of Turmeric Annual production of Chillies

in India and Kerala (tonnes) in India and Kerala (tonnes)
5000000 5000000
993000 1228900
718100 786750 821200
500000 1202940 1276300 1375500
1185500 1242110
500000 971100
India 50000

50000 Kerala
5000 1415 1601 1393 1453
8237 9980 7434 6364 7946 8132 8355 823
6244 6066 6198
5000 500

India and China contribute close to 87% of the world’s Chilli production. Kerala produced 1322
tonnes of Chillies in 2013-14. India exported 0.23 MMT of Chillies in 2014-15. India and China
contribute close to 70% of the world’s Turmeric production. India exported 8% of total production
in 2014. Kerala produced nearly 7946 tonnes of Turmeric in 2013-14 with price per quintal at INR
6918 in 2015. Turmeric is losing out to other competing crops especially in Tamil Nadu and
Kerala.

Agriculture Exports

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Idukki,
-
NA 11.4% Kottayam, USD 252.57 mn
Kozhikode

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 Study on Investment Potential in Kerala

Agri-based exports of Kerala

$300.00
$252.57
$250.00 $230.46
$219.68
$199.36
$200.00
$163.54
Million USD

$150.00
$105.63
$91.22 $87.99 $94.93
$100.00

$50.00
$3.29 $5.89
$-
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Rubber 70.43%
Pepper 67.89%
Clove 49.03%
Cardamom 42.79%
Coconut* 37.78%
Tapioca 29.60%
Tamarind 22.48%
Arecanut 22.13%
Coffee 20.83%
Cocoa 18.57%
Papaya 12.48%
Banana 7.76%
Pineapple 7.28%
Tea 6.21%
Cashew 4.86%
Ginger 3.42%
Mango 3.07%
Turmeric 1.04%
Paddy 0.45%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

Agriculture exports show a CAGR of 54.34 % since 2005-06 with Kerala exports value reaching
USD 252 million in 2015. Fruits, fruit pulp and processed fruits form the major part of exports
with USD 69 mn followed by vegetables (USD 53 mn) and Rice (USD 29 mn).

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 Study on Investment Potential in Kerala

Marine Production and Exports

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
INR 36576 Cr
14.1 % - Alappuzha USD 327 Mn
(India)

Fish (Marine, Inland)production and Marine Products Export (India) since

Export of Kerala 2005
6000
718.22 18.78 18.26 18 18.22 20
16.62 18 5000
15.88
Production Fish (Lakh Tonnes)

6 15.52
16

USD Million
5.98 5.86 5.83 4000
5.7 5.6 5.53
5
5.31 5.22 14 % of India's Exports
12 3000
4
10
3 2000
8
1.86
6 1000
2 1.4 1.49
1.03 1.17 1.21
0.8 0.91 4
1 0
2
0 0

Fresh Shrimp Fresh Fin Fish

Fresh Cuttlefish Fresh Squid
Marine Dried items Live items
Inland Frozen items Other marine products

Total fish production in India in 2014-15 was around 10.06 million tonnes with Andhra Pradesh
being the largest producer of fish with estimated fish production of 1.9 million tonnes during
2014-2015.The total fish production in Kerala during 2014-15 was 0.8 million tonnes. Kerala
contributes nearly half of Indiaʹs marine fish landing of Sardines, Shrimps, Lobster, Cuttlefish,
Squid, Tuna 15. India’s marine exports is not growing as per expectations due to increased
competition and anti-dumping duties (on shrimp etc.) by US and European governments.

Minerals and Mining

Revenues CAGR % contribution Potential Exports
to GSDP Districts

`
Kannur, Kasaragod,
INR 2587 Cr -0.52% 16 Kollam,
(4 year CAGR) 0.65% -
(Kerala) Thiruvananthapuram,
Alappuzha, Palakkad

15
www.mpeda.gov.in
16
KPMG in India analysis 2017; values based on 2013-14 Kerala GDP report
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 Study on Investment Potential in Kerala

Production in Tonnes Percentage contribution to GSDP

Ilmanite
0.81%

Laterite/ 0.70%
Bauxite

0.54%
Limestone

Lime Shell 0.36%

Silica
Sand

China Clay

0 500000 1000000 2011-12 2012-13 2013-14 2014-15

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

Increasing demand for minerals arises across India and globally. Huge scope for exploration and
production, however capacities need to be improved. There are limited mineral based industries
in Kerala. Wide forest cover and environmental clearances may be a challenge for exploration
and mining including land acquisition challenges. Minerals industry has the highest GVA in
Kerala. Production is consistent in China clay, Limestone and Ilmanite. Key players in Kerala
include English Indian Clays Ltd. (EICL), Thiruvananthapuram, Indian Rare Earths Ltd. & Kerala
Minerals and Metals Ltd., Chavara Kollam, Kundara Ceramics Kollam, Excel Glass industry,
Alappuzha, Travancore Cements Ltd., Kottayam etc.

Manufacturing
Agriculture Equipment

Revenues CAGR Total Output Potential Total Exports

Districts

`
USD 650 MN
- 12%-14% 190 Cr (KAMCO) Ernakulam
(Tractors)2015

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 Study on Investment Potential in Kerala

Machinery at various stages of Agricultural production

State Tractor Sale of Tractors & Tillers - India

Density 17 800
700
Haryana 84 Tractors (CAGR 12.2%)
600
500
UP 76
'000 Units

400
300
India 33 200 Tillers (CAGR 14.2%)
100
Kerala 4 0

Tractors, Power tillers and Threshers constitute maximum of agriculture machinery used in India.
Mechanization level in India is about 40-45 percent. Developed countries have up to 95%
mechanization. Mechanization in Kerala is very low compared to other India states. Kerala has
less than 1% of total tractor sales in India. Improved availability of credit and focus on
productivity is driving farmers for mechanization. Kerala Agro Machinery Corp (KAMCO) is one
of the largest producers of Power Tillers in India. 18

Metal Working & Smelting

Demand CAGR % contribution to Potential Total Exports

Market (2014-15) GSDP Kerala Districts

`
Palakkad,
1,30,000 19
8.067 ~0.01% 20
Ernakulam,
NA
Tonnes Kozhikode,
Malappuram

17
Tractors per 1000 hectares of net sown area
18
http://www.ibef.org/download/Agricultural_Equipment_171109.pdf, http://farmech.dac.gov.in/, http://un-
csam.org/publication/PB201402.pdf
19
OPEC report, KPMG analysis
20
Business line 22-Dec-04, Kerala steel manufacturers demand continuous power supply
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 Study on Investment Potential in Kerala

YoY Percentage growth of steel consumption (2010-15)

14.00%
13.17%
12.00% 11.97%
10.00%
8.00%
6.93%
6.00%
4.00% 3.52% 3.90%
2.00%
0.82%
0.00%
FY10 FY11 FY12 FY13 FY14 FY15

India is in 4th position in the world steel production. In FY15, the consumption of finished steel
in India was 77 MT. In Kerala 95 per cent of metal products manufacturing companies are in
MSME sector 21. As of 2004 there were 55 - 60 steel manufacturing units in Kerala. The industry
was providing direct employment to ~15,000 persons 22. The sector contributed INR 75 Crores as
revenue to the state as taxes and cess in 2004. Tube mill segment has monthly turnover of INR
90 23 Cr in 2016 and employs around 500 people 24. In 2004 the demand for steel was 60,000
Tonnes and 35000 tonnes were produced in the state. The Demand – supply gap is widening,
seen in terms of strong and rising import ratio.

Select Key Players – Kerala

• Kerala Sponge Iron Ltd
• Scot Free Steels
• SIDCO Steel manufacturing unit
• Surabhi steels
• Kairali Steels
• Minar steels
• Paragon Steels
• AP Steels
• Prince Steels
• Kalliyath TMT
• SJ Steels
• Distributors of RINL, SAIL

Automobiles & Auto Components Manufacturing

Revenues CAGR % contribution Potential Total Exports

(2014-15) to GSDP Kerala Districts

`
~ 39469030 ~ 7-8% of India’s Thiruvananthapuram, ~ USD 10
~ 10%
Lakhs (India) GDP Ernakulam Billion (India)

21
A Study on Issues Facing The Steel Re Rolling Mills, International Journal of Industrial Engineering.
22
Business line 22-Dec-04, Kerala steel manufacturers demand continuous power supply
23
OPEC report, KPMG analysis.
24
Business line 09-Feb-16 – Kerala Tube mills 4. International Journal of Scientific and Research Publications, Volume 3, Issue 12,
December 2013.
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Page 77 of 269
 Two Wheelers (Units) Commercial Vehicles (Units)
1000000
20000000
800000
15000000
600000
10000000
400000
5000000 200000

0 0

Production Domestic Sales Export Production Domestic Sales Export

Passenger Vehicles (Units) Automobile Statistics (Units)

30000000
4000000 25000000
3500000
20000000
3000000
2500000 15000000
2000000 10000000
1500000
1000000 5000000
500000 0
0

Production Domestic Sales Export Production Domestic Sales Export

Automobiles & Auto Components manufacturing sector contributes to approx. 7-8 per cent of
India’s GDP, 7-8 per cent of India’s employment and 22 per cent of India’s manufacturing GDP
with a consistent growth rate of approx. 10 per cent over the last few years. 25

Automobile exports contribute to approx. 17-18 per cent of the production. Two wheelers
contribute to 80 per cent of market share and passenger vehicles at 13 per cent. Passenger
vehicles sales grew by 16.7% and two wheelers by 22% approx. in August 2016

Auto Mission plan 2006-2016 aims at contributing to over 10 per cent of India’s GDP. Kerala’s
contribution to Indian Automobile Manufacturing is minimal. Kerala Automobiles Ltd. is a public
sector unit manufacturing 3 wheelers and exports them mainly to Egypt. Opportunities are
available but land acquisition and manpower availability may be a challenge and states like
Gujarat, Maharashtra and Tamil Nadu have first mover advantages

<This space is intentionally left blank>

25
KPMG Analysis; data basis Society of Indian Automobile Manufacturers, IBEF report
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 Study on Investment Potential in Kerala

Textile
1. Technical Textiles and Garments

India Market CAGR % Potential Key CAGR of

Size contribution Districts Investments Total
to GSDP Exports
`
Thiruvananthapuram, Geo Textiles
INR 1,50,000
12% 26 - Ernakulam, Thrissur (USD 10Mn) 8.06% 27
Cr
Palakkad, Kozhikode

Percentage of fund spent by the Operating textile Mills in Kerala

state for modernization compared (2007 -15)
to total spent by all states 50
40 38 38
22.76% 36 36 34 34
25.00% 40
20.00% 30
14.64% 13.58%
12.52% 17
15.00% 20
10.00% 10
5.00% 0
0.00%
2011-12 2012-13 2013-14 2014-15

Profit/Loss by National Textile Corporation (NTC) Mills

(Lakhs)
500

0
2009-10 2010-11 2011-12
-500

-1000

-1500

India recorded total exports of US$ 40 Bn in 2015 28. In textile mills total of 6444 employees were
there on rolls as of 2015. Gujarat has emerged as a hub for textile sector by contributing 25% of
total production 29. Cotton yarn, followed by knitted garments and fabrics are the major products.
Cotton textile industries are concentrated in Thrissur and Palakkad followed by Ernakulum and
Kannur.
Home furnishing products 30 are the major exportable product from the state which is
manufactured in Kannur. State textile corporation’s all seven mills are incurring loss. Kerala had
received order of INR 20 Mn6 from Tamil Nadu for stabilizing 50 km long roads with geotextiles.

26
http://www.thehindu.com/news/cities/Coimbatore/potential-for-investments-huge-in-technical-textiles/article7821015.ece
27
Indiastat
28
Indiastat, KPMG Analysis
29
Assocham Textile sector study 2012, http://www.business-standard.com/article/companies/gujarat-is-emerging-as-technical-textiles-
hub-assocham-study-112020700024_1.h
30
.echnicaltextile.gov.int
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 Study on Investment Potential in Kerala

Also orders are in pipeline from countries like Saudi Arabia, South Africa for INR 50Mn Kerala
has three textile parks being set up in Thiruvananthapuram, Palakkad, and Kannur.
Select Key Players – Kerala
• Anna Group- Kitex Garments • Hantex
• V-Star • Prince Fashions
There are numerous small-scale exporters of lady garments and many export companies. Ladies
nightwear
Textile – Garments Case Study

Kitex 31 Limited is Anna Groups weaving unit established in 1975. Engaged in production of
fabrics made of cotton, other blends, grey cloth bedsheets, lungies. Kitex has a 100% export
oriented unit – Kitex Garments Limited. Kitex Garments solely exports readymade garments.
Different products include:
• Hosiery
• Polar fleece
• Shirts
• Kids wear
• T-shirts
• Nylon
• Jackets
• Pants
• Night wear
• Cotton undergarments
• Knitted cotton wears etc.
They have standardized production units and also offer tailor-made customer specifications

Key Statistics
• Revenue (FY16) – 56,563 Lakhs (CAGR – 15.15%)
• Number of Employees - ~ 4000
• Production Capacity – 50 Tonnes/ day
• Export Contribution to revenue – 76.50%
• Company listed in BSE & NSE

Areas of concern

• Issues with trade unions

• Corporate governance issue with operation of another entity Kitex Children wear Limited
in the same facility of Kitex garments
• Banking issue - Non-conversion of EEFC cash (~INR 200 Cr) for a company of post-tax
profit ~ INR 100 Cr (As per RBI guidelines
• Employee Attrition – Key personnel leaving the firm - Independent director, CFO

31
Dhanam Publication “Hot Brands of Kerala” Vol-I, http://capitalmind.in/2016/02/what-went-wrong-with-kitex-garments/
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 Study on Investment Potential in Kerala

2. Handlooms

India Market CAGR % Potential Key CAGR of

Size contribution Districts Investments Total
to GSDP Exports
`
Thiruvananthapuram, Largely
INR 25800
7.81% 0.06% Kollam, Kozhikode, Government 6.9% 33
Lakhs 32
Kannur Schemes

45000
40153
40000 36978 36141
35000

30000
25800
25000 22287 22408 21793
20214
19096
20000 21057
15000

10000
2010-11 2011-12 2012-13 2013-14 2014-15

Number of looms Value of Production (Rs.in Lakhs)

Though there is an increment in revenue, the number of looms in operation is in a diminishing

trend. Employment generation in this industry has got decreasing trend in recent years with
CAGR of -8.71 per cent. In FY2015 total export value worth of 224600 Lakhs rupees were made
from India. Kerala constitutes for 0.42 per cent of the total handloom worker households. 34
Handloom clusters are in Balaramapuram, Azhicode, Kannur, Palghat and Kozhikode. Average
Earning of Handloom Households in Kerala is INR 40,000/annum. KELTRON has launched an
ecommerce portal “kelebuy.com” including handloom and handicrafts products.

Select Key Players – Kerala

• Hantex • Kasavu Kada
• Hanveev • Kuthampully
• Karal Kada • Kairali Exports

32
Economic Review 2015, State Planning Board
33
Handloom Export Promotion Council 4. Indiastat, KPMG Analysis
34
Development commissioner of Handlooms
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 Study on Investment Potential in Kerala

Textile – Handlooms Case Study

Balaramapuram Handloom Cluster

• Major handloom clusters of Kerala are
• Balaramapuram/Thiruvananthapuram of the Travancore region
• Koothampalli and Chendamangalam of the Cochin region and
• Kannur, Kasargod and Kozhikode of the Malabar region.
• Balaramapuram is a small township located in Thiruvananthapuram district of Kerala.
• Handloom sales is one of the major activity in Balaramapuram and the weaving or part
of handloom making process is done by all communities in and around Balaramapuram
• The major items manufactured from Balaramapuram are Kasavu Sarees, Set Mundu
(Pudava and Kavani), Dhoti (Mundu), Neriyathu (Kavani) and Ladies Dress Material
(Salwar Kurta)

Kaithry.com
• Kaithary.com is aiming at helping these weavers community by promoting online sales
of the handloom and other handmade items like jewellery
• A percentage of the profit from this initiative will be used for charity purpose mainly to
help the children of all weaving community members for education
• The product range offered in the site includes Handloom Sarees with and without Kasavu
(silk), Set Sarees, Churidar Sets, Dhothis (Mundu), readymade apparels, Towels and
other handloom items.
• They also offer stitching options and customized blouse, pavada, churidars, nighties and
other innerwear

Immense Potential
• Kaithary.com can get wider
recognition and customers
worldwide by investing in branding
• The website can feature products
from other handloom clusters as
well and form a regional brand for
Kerala Handlooms
• The website look and feel needs
improvement with additional

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 Study on Investment Potential in Kerala

3. Handicrafts

India CAGR % contribution Potential Key CAGR of

Market Size (2011-15) to GSDP Districts Investments Total
Exports
`
Thiruvananthapura, 981.3 Lakh 35
9.47%
- - - Ernakulam, Thrissur
Palakkad, Kozhikode

State-wise Number of Handicrafts Fairs/Exhibitions Organised and

49 Financial Assistance Provided in India
1857.1 56
2000.0 60
42 50
1500.0
40
1000.0 20 21 30
18 15
425.1389.9 14 13
12 20
9 10 8 7 7 7 10
500.0 166.1152.1117.7 82.0 80.5 61.5 58.5 6
54.3 50.4 49.1 47.9 44.6 43.3 37.1 36.6 10
0.0 0

Financial Assistance Provided Number of Exhibitions

Percentage of central fund Number of Handicrafts

received by the state of all the Fairs/Exhibitions Organised and
states Financial Assistance Provided in Kerala
100 40
65.3
36.6
5.00% 4.26% 50 12 20
26 10
4.00%
3.00% 16.9
2.00% 0 0
0.61% 0.44% 2012-13 2013-14 2014-15
1.00%
0.00% Financial Assistance Provided
2013-14 2014-15 2015-16
Number of Exhibitions

In FY16, Central released INR 930 36 Lakhs, for development & promotion of the industry.
Incremental Demand for manpower in Textiles & Garments is in the tune of 19100 during 2012-
17 period and 21500 during 2017-22 period (Medium). 19,000 37 crafts persons are covered under
various schemes of government.

35
Indiastat - State-wise Funds Released for Development and Promotion of Handicrafts Sector under Handicrafts
Schemes in India 2015-16
36
Indiastat, KPMG Analysis
37
Lok Sabha Starred Question No. 297, dated on 23.07.2009, KPMG analysis
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 Study on Investment Potential in Kerala

Kerala has seen a decreasing trend in no. of exhibitions held and financial assistance provide.
Major handicrafts products from the state are Bamboo products, Coconut 7 coir based products,
Art-metal-ware and wooden-art-ware. The major buyer countries are USA, UK, Germany, Italy
and France
Select Key Players – Kerala
• Development Commissioner Handicrafts
• SURABHI – apex society
• Handicrafts Development Corporation
• Artisans Development Corporation
• Bamboo Development Corporation
• Palmyra Development Corporation
• SMSM Institute
• Kairali Exports

Chemical Industry

Production CAGR % contribution to Potential Total Exports

GSDP Kerala Districts

Ernakulam,
-
~10,000 MT 3 Thiruvanathapuram, -
Kollam

Product Mix

DyesAlkali
Pesticides 4% 3%
16%

Organic
9%

Inorganic
68%

Chemical sector contributes about 2% 38 of GDP of the nation with total production of 9600 Metric
Tonnes. The chemical industry consists of:-

• Alkali chemicals
• Inorganic chemicals
• Organic chemicals
• Pesticides
• Dyes

38
Report on Chemicals Jan 2016, India Brand Equity Foundation
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 Study on Investment Potential in Kerala

India is world’s third largest consumer of polymers. The Index of Industrial Production 2014 - 15
for Chemical industry was 118.8 39. The export was valued USD12 Bn in the FY15. 100% FDI is
allowed in this sector. Gujarat and Maharashtra are the leading states in the market.
Chemical sector industries contributes ~80% 40 of total profits of Kerala Public Sector Enterprises.
Employment opportunities are less in this sector, generating about 1000 vacancies. Travancore
Cochin Ltd is pioneer in chlor-alkali manufacturing and it supplies close to 100 tonnes2 of
chlorine to Kerala Water Authority every month.

Select Key Players – Kerala

• The Travancore- Cochin Chemicals Ltd
• Hindustan Organic chemicals Ltd
• Kerala Minerals & Metals Ltd
• Phillips carbon black Ltd
• Travancore Titanium Products Ltd
• Hindustan Insecticides Ltd
• Fertilizers and Chemicals Travancore Ltd
• Nitta Gelatin India
• Merchem
• Petrogas International

Engineering Industry

Revenues CAGR % contribution Potential Total Exports

to GSDP Kerala Districts

`
~ 8% of India’s
~ INR 12 Lakh ~ 11% Thiruvananthapuram, ~ USD 70.6
GDP
Cr Ernakulam Billion (India)

Exports of principal commodities

9%
12% 34%
22%
23%

Auto components Iron & Steel Products

Industrial Machinery Non ferrous metal products
Others -medical, scientfic, office, etc

39
Index of Industrial Production – Kerala, 2014 -15, Ecostat
40
Financial Health Of Public Sector Chemical Industries In Kerala, IJESMR Jan 2016
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 Study on Investment Potential in Kerala

FDI inflows in Engineering sector (US$ billion)

30
25
20
15
10
5
0
2010 2011 2012 2013 2014 2015

Good growth in Indian Engineering sector due to increased investments in industrial production
and infrastructure. 100% FDI is allowed in this sector. Cumulative FDI of over US$ 20 Billion in
FY2001-2015 with a YoY growth of over 25%. Sector contributes a CAGR of over 11% (FY2008-
2015). 41
The export was valued over US$ 70 Billion in FY2015. The two major segments are heavy
engineering & capital goods – expected to reach US$ 125 Billion by FY2017 and Light Engineering
and Electrical Equipment – market expected to reach US$ 100 Billion by FY2022. Telecom
equipment market is approx. US$ 18 Billion, and is expected to reach US$ 20 Billion by the year
2020. Make in India – a big push for the industry.
Key challenge is huge investments required for heavy engineering. Light Engineering / Precision
tool manufacturing MSMEs may be considered – based on the location of OEMs.

Ship Building

Revenues CAGR % contribution Potential Investment Total

to GSDP Districts Potential Exports

` Kerala

Thiruvananthapuram, Manufacturing
INR 8708 - Alappuzha, Clusters
~ 2-3% -
Cr Ernakulam,
Kozhikode

Cargo handled by major ports (in '000 Tonnes)

600000
581344
580000 570032
561090 560139 555487
560000 545790
540000 530533

520000
500000
2009 2010 2011 2012 2013 2014 2015

41
KPMG Analysis; data basis IBEF report
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 Study on Investment Potential in Kerala

Container traffic (in '000s)

150000

100000

50000

0
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Shipbuilding has spin offs to other industries, including steel, engineering equipment, port
infrastructure, trade etc. Water transportation is the cheapest mode of transportation. Cargo
traffic at Indian ports growing at about 8-10% YoY in last few years 42. More than 90% cargo
handled by foreign vessels. Huge investments by GoI for development of Ports and Water ways
and increase in defence and naval budgets – increasing the potential for ship building. Ship
building also has a huge potential for exports. Kerala one among the 4 major centers for
shipbuilding and availability of long coastline. High initial investment could be a major challenge.

<This space is intentionally left blank>

42
KPMG Analysis; values based on Indian port Association website
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Drugs and Pharmaceuticals
State wise % to India, number of Inspectorate, manufactures and Pharmacies
(2015)

20% 18% 18%

15%
15% 13% 13% 13%
12% 13% 12%

10% 8%
6% 6%
5% 5%
5% 4% 3%
1% 1%
0%
Maharastra Tamil Nadu Gujarat Karnataka Kerala Andhra
Pradesh

Total number of Drug Inspectorate Number of manufacturers Number of Pharmacies

Drug expenditure as % of health expenditure

60000

50000

40000

30000
43657
20000
24861 23458
10000 20882
15431 14831
0 12% 13% 10%
5% 8% 6%
Maharastra Tamil Nadu Gujarat Karnataka Kerala Andhra
Pradesh
Drug Expenditure Overall govt health expenditure

Kerala consumes 10 per cent of the total medicines sold in the country. In order to bolster the
capacity of drug samples/annum, (the main laboratory at Trivandrum), Kerala has opened a new
drug testing facility at Thrissur. Kerala has the least number of Drug inspectorate (47),
manufacturers (87) and Pharmacies (15000)
Tamil Nadu leads in total inspectorate and Pharmacies of 138 inspectorates and 1, 01,240
pharmacies. Andhra Pradesh has the highest number of manufacturers of 1071. Though Tamil
Nadu govt., spends the maximum on health expenditure (Rs 43,675 Lakhs), followed by Kerala
(Rs 24,861 Lakhs), percentage of drug expenditure to overall health expenditure is highest for
Kerala (of 13% or Rs. 3107 lakhs), followed by Tamil Nadu (of 12% or Rs 5326 Lakhs).
In order to bolster the capacity of drug samples/annum, (the main laboratory at Trivandrum),
Kerala has opened a new drug testing facility at Thrissur. The drug processing capacity of the
Kerala State Drug lab is 5000 – 6000 Samples/Year. 43

43
SDRA Websites, Press Releases, Media Reports, Universal Health Coverage, 2011, http://pharmatips.doyouknow.in/Articles/Pharma-
Companies/List-Of-Pharmaceutical-Companies-In-Kerala.aspx, http://www.tutorialwatch.in/top-pharmaceutical-companies-kerala/
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A Swiss entity. All rights reserved.
88
 Study on Investment Potential in Kerala

Few Pharmaceutical companies in Kerala:

• Kerala State Drugs & Pharmaceuticals Ltd.
• Southern Union Pharmaceuticals
• Medi Pharma
• Aykara Pharmaceuticals
• Chetana Pharmaceuticals

Wood
1. Timber Processing

Revenues CAGR % contribution to Potential Total Exports

GSDP Kerala Districts

`
INR 8373 - USD108 MN
15.4% Exports Kozhikode
Cr (2014 India)

Reclaimed
Timber Imports
Wood

Forest Agro Private

Areas Farming Plantations

Timber Statistics of India: Quantity – 000’ cu.m. Value $ 000’

Unit 2009 2010 2011 2012 2013 2014 CAGR

Production
156710 158890 161070 NA NA NA 0.9%
Quantity

Exports Quantity 112 75 218 265 248 279 16.5%

Exports Value 45820 57038 53717 60135 98207 108266 15.4%

Imports Quantity 13820 14906 18261 18783 18647 20996 7.2%

Imports Value 3353454 3992394 5547061 5995001 6183456 6773216 12.4%

The total annual market for timber and furniture in India is estimated to be USD 1.25 billion about
90% of which is for wooden products. Asia Pacific region has over 4500 varieties of wood-
yielding species and has some of the best known and most highly priced tropical hardwoods.
Approximately 600 timber processing units are currently functioning all over the country.
Demand for timber in India is about 123 million cu. mts while supply is only 68 million cu.mts

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 Study on Investment Potential in Kerala

About 28% of Kerala’s total land mass is forest cover. Kerala produces about 17540 Cu. Mts of
timber (2012) and wood imports are worth about INR 1,500 crore annually. 44

2. Furniture Making Industry

Revenues CAGR % contribution to Potential Total Exports

GSDP Districts

`
INR 66990 Ernakulam,
15% 0.5% (India) -
Cr Malappuram

Furniture Industry Value Chain

Designing Distribution
• Raw material • Processing,
procurement Assembling &
(Wood, Metal • Designing Finishing
• Direct,
etc.) furniture for Wholesale
Home, Office, Retail(brick &
Contract etc. motor, e-
tailing)
Procurement Production

Furniture usage(India)

35%
Domestic

65% Commercial

45

44
Economic Review, Annual Survey of Industries
45
http://www.nsdcindia.org/sites/default/files/files/Furniture-Furnishing.pdf, Annual survey of industries 2008-09,
http://initiatives.sampitroda.com/innovationclusters/resources/caselets/Ernakulam_Caselet.pdf
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 Study on Investment Potential in Kerala

• Demand for furniture in India surged at 12%

annual rate over 2007-2012, and in 2013 it
increased at a rate of 15%
• India is a net importer of furniture and furnishing
products
• Indian wood and furniture sector is
predominantly in the hands of unorganized small
units
• There are around 1420 registered furniture
making units across India with Maharashtra
alone having 222 units
• Southern state of Kerala produces 95 % of the
total supply of India rubber wood
• Proposal of the newly constituted Zamorin’s
Furniture Consortium to set up a world-class
Common Facility Centre (CFC) at Kozhikode has
won the approval of the Central and State
Government.
• Kerala is a key state for wooden home furniture
which is the biggest segment.
• Malappuram Wood Furniture, Ernakulum Wood
Furniture, Taliparamba Wood Furniture are 3
important furniture manufacturing zones of
Kerala

Key challenges faced by the industry include

• Restricted supply of raw materials
• Limitations of design due small size units
• Deficiency in skilled labour
• Market access as most small units depend on local buyers

3. Plywood Industry

Revenues CAGR % contribution to Potential Total Exports

GSDP Districts

`
Ernakulam,
INR 5000
5.5% Wayanad, USD 24 Mn
Cr -
Kozhikode, (2015)
Kasaragod, Idukki

Major product categories - veneer sheets, particle board panel etc.

Indian plywood industry is as big as INR 5,000 crore equivalent and industry accounts for 15% of
total wood production producing, some 30 million sqm of plywood and block boards.
Manufacturing of plywood, veneers etc. are labor Intensive. One of the biggest specificities about
the plywood industry in Kerala is the presence of large number of migrant labour in the
workforce which largely comes from Assam, West Bengal, Orissa, and Bihar and also from

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 Study on Investment Potential in Kerala

Bangladesh. Demand for plywood is at an increasing trend. However, difficulty to find new land
for establishing new industrial units increase. 46 Large number of plywood manufacturers and
traders (~200-300 in total) presence in Kerala with 85 plywood manufacturing industrial units
functioning in Ernakulam district alone. While the total quantity of wood processed may be
massive, the individual size of the industry still remains small. Presently around 24 small scale
plywood industries have formed a consortium - Perumbavoor Plywood Manufacturers
Consortium Pvt. Ltd.

India’s Exports of Plywood, veneered panel and similar laminated wood (000 USD)

Plywood Export (Top 7) 2011 2012 2013 2014 2015 CAGR

Turkey 10721 5734 6500 11493 5734 -11.8%

United Arab Emirates 1146 2792 3543 4879 4013 28.5%

Saudi Arabia 158 515 800 1085 1796 62.6%
Netherlands 1168 897 1175 1033 1606 6.6%
Thailand 44 134 991 1311 1518 103.0%
Maldives 122 349 178 370 1063 54.2%
Bahrain 136 430 653 1202 879 45.2%
World 18814 17696 22568 31019 24622 5.5%

Key Players: Kitply Industries, Century Ply Industries, Green Ply Industries, National Plywood

Coir based Products 47

CAGR % contribution to Potential Total Exports

Revenues GSDP Districts

`
Alappuzha,
-
0.4% 48 - Thiruvananthapuram, ~ USD 1 Mn
Kottayam, Kozhikode

Number of Coir Units Registered with Coir Board and % share to India
62%
8900 61% 62%
60%
8800 59% 58% 60%
8700
8600 58%
8500 56%
2009-10 2010-11 2011-12 2012-13 2013-14

No. of Units Percentage to India

46
http://www.trademap.org/Country_SelProduct_TS.aspx?nvpm=1|||||4412|||4|1|1|2|2|1|2|1|1
47
Economic review 2015, Indiastat, MSME state profile 2015, Ecostat report, Kealatourism.org
48
Growth in number of units (2009-13)
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 Study on Investment Potential in Kerala

Export of coir products from Kerala in Lakhs

800 736
645
700
600
500
400 325
258
300 205
200
100
0
2010-11 2011-12 2012-13 2013-14 2014-15

Total number of units in Kerala registered with Coir Board of India increased from 8649 units in
2009 to 8790 units in 2013. However, % share to national count is at a decline. Coir the largest
cottage Industry in Kerala with total number of Exporters - 102 and total number of Importers –
12. Total number of private sector units registered with Coir Board was highest for Kerala in
2015, (8811 units 58% share). In addition there are 3 public sector units. White fibre - 61% of
coconut production & over 85% of coir products. Nearly 50% of the available coir husk is used to
produce coir products Coir industry is a labour -intensive industry which provides employment
to more than 7,00,000 persons in India of whom majority are from rural areas. Ample
opportunities for the development of technology also facilitating transfer of technology. Coir
Board “Golden Fibre Plus” scheme in Cherthala offers modernization of coir industry through
flow of credit to workers.
Major Coir Products 49
• Coir Yarn and Ropes
• Door Mats
• Fiber Mats
• Coir Door Mats
• Coir Mattings
• Sisal Mattings
• Grass Mattings
• Jute Mattings

Government of Kerala Agencies

• Kerala State Coir Corporation Ltd.
• Foam Mattings (India) Limited
(FOMIL)
• Kerala State Co-operative Coir
Marketing Federation (COIRFED)
• Central Coir Co-operative Societies
• Primary Co-operative Societies

49
MSME state profile 2015
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Fruit & Vegetable Processing

CAGR % contribution to Potential Total Exports

Revenues GSDP Districts

`
INR 250 USD 37 Mn
17% - Kannur, Kollam
Cr (2015)

Categories: Ready to serve beverages, fruit juices and pulps, dehydrated and frozen fruits and
vegetable products, tomato products, pickles, convenience veg‐spice pastes, processed
mushrooms and curried vegetables

Kerala Exports
Category India Exports 2015 2005 (All India)
2015

Cucumber &
$15.21 MN NA $9.8 MN
Gherkins

Dried & Preserved

$13.94 MN $.3.59 MN (26%) $ 4.99 MN
Vegetables

Other processed $44.27 MN

$34.15 MN (77%) $10.85 MN
fruits and Veggies CAGR (17%)

Food processing industry in Kerala is one of the fastest growing sectors. Nearly 1,274 food
processing units in Kerala alone. Two thirds of Kerala’s total export income comes from
processed food. Domestic consumption of processed fruits is low. The smallness of units and
their inability for market promotion is the main reason for low domestic market Infrastructure
facilities key for development of food processing in the State. Only 3 food parks in Kerala. Quality
and safety issues is key to become a successful player in this industry. KINFRA Industrial Parks
at Nellad and Malappuram are prominent food processing zones of Kerala. 50

Dairy Processing

CAGR % contribution to Potential Total Exports

Revenues GSDP Districts

`
USD 2.6 MN
Thiruvanthapuram,
- 3.0 % - (2015)- Dairy
Palakkad
Products

50
foodprocessingindia.co.in/fruits-and-vegetables.html, Economic Review 2015

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A Swiss entity. All rights reserved.
94
 Study on Investment Potential in Kerala

Per capita milk availability - All India vs Kerala

350

300

250
gms/ day

200

150

100

50

0
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

All-India Kerala

Milk Production (Million Tonnes) 51 • 20% of India’s total milk is further processed by
Year India Kerala organized sector which includes government
supported dairy cooperatives and licensed
2004-05 92.5 2.03 private sector.
• Overall dairy exports are minimal (30,000
2005-06 97.1 2.06
Tonnes/annum) due to high domestic
2006-07 103 2.12 consumption
• Top 14 states including Kerala produces almost
2007-08 108 2.25 90% of milk in India.
• There are more than 3500 co-operative societies
2008-09 112 2.44
registered in Kerala.
2009-10 116 2.51 • Kerala exported 550 Tonnes of dairy products
during the year 2015-16
2010-11 122 2.65 • MILMA stands on 9th rank in the list of top 10
dairy Companies of India
2011-12 128 2.72
• Technical innovation in milk processing is a
2012-13 132 2.79 necessary growth driver for the industry
• More than 3600 co-operative societies are
2013-14 138 2.66 registered in Kerala

2014-15 146 2.71

CAGR 4.7% 3.0%

Important growth drivers for dairy processing

• Huge population of Milch cattle
• Growing domestic demand for safe, nutritious milk products
• Governments Initiative

51
http://www.nddb.org/information/stats/milkprodstate, http://www.dairy.kerala.gov.in/
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 Study on Investment Potential in Kerala

• Technical innovation in milk processing

• Potential to catapult India as major dairy exporting country

Marine Processing

Revenues CAGR % contribution to Key Investments Potential

GSDP Districts

`
INR 5166 KINFRA Seafood Park Kozhikode
26% 1.07% 53
Cr 52 at Alappuzha Alappuzha

800000 Marine Products

Quantity Value (INR
600000 (Tonnes) Lakh)
CAGR (Value) – 26%
400000 470636 516608
298833 343585
200000 200210 CAGR (Quantity) – 7.55%
124615 155714 166399 165698 166754
0
2010 2011 2012 2013 2014

Processing of fish into canned and frozen forms is carried out mostly for exports.

% Share in country’s marine Quantity Value

products's exports (Tonnes) (INR Lakh)

18.5 18
18.22
18 17.93
17.5 18.06
17 16.84
16.5
16 15.86
15.5 15.52
15 15.58 15.45
15.33
14.5
14
13.5
2010 2011 2012 2013 2014

52
Economic Review 2015, MPEDA, 1 Kerala exports value, The Marine Products Export Development Authority (MPEDA), Economic
Review 2015
53
Fisheries sector contribution to Gross State Value Added 2014-15 (quick estimates)
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 Study on Investment Potential in Kerala

Total Seafood exports from Kochi Port 72% production is Marine fish; Marine fish
185922 MT | INR 3337 Cr | CAGR 7.67% landings during 2014-15 were 5.24 lakh
(2011-14) tonnes

Marine products lead the list of food products exported from the State, followed by spice
products & cashew. Significant increase in value of product exports over 2010-14 period with a
CAGR of 26%. However, share of Kerala has reduced from 18% in 2011 to ~15% in 2014. High
value species among the fish catch is less. However, significant among them are Seer fish,
Prawn, Ribbon fish and Mackerel.
Frozen Cuttle continued to be the major export value accounting for share of ~44% of total India
marine export earnings. Andhra Pradesh was the highest contributor to total fish production in
2014-15, Kerala at 5th position. Kerala has the highest Dried/Salted Fish Handing capacity in
India. Marginal increase in total fish production during 2010-14 period; CAGR of 1.6%. Increased
demand for processed and ready-to-eat marine products in the domestic and foreign market.

Top Export Products

• Frozen Shrimp | 12.71% share 54
• Frozen Fish | 12.54%
• Frozen Cuttle | 44.44%
• Frozen Squid | 37.04%

Rice Brands Processing

CAGR % contribution to Potential Total Exports

Revenues GSDP Districts

`
- 15% - Palakkad, Alappuzha USD 29.1 Mn

54
2014 % share of total India exports (in value terms)
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 Study on Investment Potential in Kerala

Kerala (Rice Exports) $ MN India exports of packaged basmati and non

basmati rice
6000
Year Basmati Non-Basmati
5000
2010-11 0.017 1.60

Value in $ Millions
4000

2011-12 0.05 24.1 3000

2000
2012-13 0.04 21.8 India (Basmati)
1000
India (Non-Basmati)
2013-14 0.04 26.6 0
2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
2014-15 0.112 27.1

India exports Basmati rice worth $4518 mn and Non-Basmati worth $3335 mn 2015. India
accounts for 80 % of the world’s trade in Basmati. Almost half of the India’s rice (basmati) is
exported to the Middle East, US, UK, and Australia. The size of the packaged rice industry in India
around INR 15,000 Cr. Basmati accounts for 75% of the branded rice market. Punjab, Haryana
and Western UP are largest producers of packaged rice. Middle East the key importer of branded
rice and any instability in the area will affect the exports. Kerala is one of the largest markets for
branded/ processed rice in India. Periyar, Pavizham, Nirapara, Double Horse, Nilavilakku Rice are
the Top five rice brands of Kerala. Domestic basmati demand has been growing at 15% in volume
terms as branded products are accepted more with growth of food retail. New unit’s set-up would
require additional resource requirement. However, matured technology demands less of new
skills. 55
Top rice processing companies (India)
• KRBL Rice (India Gate Brand)
• REI Agro (Rain Drops)
• LT Foods (Daawat Brand)
• Kohinoor Foods (Kohinoor Brand)
• Chaman Lal Sethia Exports (Maharani Brand)

Instant Food Products Processing

Revenues CAGR % contribution to Potential Potential

GSDP Investments Districts

`
Alappuzha,
~INR 350 INR 30,000 Cr 58 - Thrissur,
1.26% 57 9%
Cr 56 Food parks Palakkad,
Wayanad

55
http://www.indiainfoline.com/article/news-sector-agriculture/industry-eyes-growth-in-the-indian-branded-rice-market-rabobank-
report-115092400562_1.html, http://www.phillipcapital.in/Admin/Research/775800759PC_-_GV_Nov_15_issue_20151126074753.pdf,
http://agriexchange.apeda.gov.in/IndExp/PortNew.aspx
56
Economic review 2015
57
CAGR of no. of units
58
KINFRA report on food processing, FICCI report on Indian Food & Beverage Sector
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 Study on Investment Potential in Kerala

Share of food processing sector – India

Others
31% Dairy
35%

Fruits & Vegetables

2%

Poultry
Marine 6%
26%

Spices, cashews, marine foods, tea, coffee, coconuts, fruits are the major food processing items.
Kerala accounts for nearly 20% of total food exports. Kerala has INR 55001 per capita expense
on food which highest in the country. There are nearly 23002 food processing units in the state.
Government has approved 1382 cold chain projects during 2009-2015. Total number of people
engaged in food processing industry in Kerala is ~14.5 Lakhs. Food processing industry has 23%
of share of total manufacturing units registered in Kerala. As per new Kerala Industrial policy
food processing is among the thrust sectors.

Oleoresins Processing

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
1 3 -
INR 600 Cr 5% Ernakulam, Palakkad USD 285 Mn

Oleoresin Applications

Others
Food & Beverage Flavours Pharmaceuticals (Meat canning, sauces, confectionary,
perfumery & soap and as a base in various
seasoning applications)

Spice oleoresins are characterized by high potency of active components which enables their
usage in small dosages. Usage of spice oleoresins leads to standardization in taste and
consistency in flavor. Oleoresins find application in Beverages, Confectionery, Meat Canning,
Sauces, Pharmaceuticals, seasonings etc. Flavors accounted for over 35% of the overall market
and emerged as the leading segment followed by food & beverages. India accounts for 70% of
the world oleoresin production. Brazil, China and India are the market leaders and spice farms in
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 Study on Investment Potential in Kerala

Kochi is the hub of oleoresin manufacturing. The global requirement of various oleoresins such
as paprika, chilly, turmeric, pepper, ginger, and cardamom is about 15000 tonnes and the global
spice oleoresin market is values at US$ 1 Mn. Kerala is home to a variety of spices and is well-
known for producing some of the best quality spices when it comes to cardamom and pepper.
Synthite Industries Limited, a Kerala based company alone commands for nearly 30% share in
the global Oleoresin market.

The sector faces high entry barriers as Oleoresin extraction process involves huge investments
in the preliminary stages and high raw material costs as the output to raw material ratios range
from 1/10 to 1/600. Also, spice oleoresins have to meet global standards when they are exported
and solvent residues in the oleoresins should not exceed 30 ppm. The demand for Spice
oleoresins us largely in the snacks, instant and fast food industry where oleoresins help
producing a standardized effect on taste and other benefits including longer shelf life, easy
blendability etc. The market for spice oleoresins is largely untapped as Indian homes are still not
familiar with the product. Urbanisation and increased marketing of the product in the home
market is likely to encourage the use of products like oleoresins. The current market is largely
focused on the B2B sector as B2C sector demands an efficient logistics and supply chain.

The high price of spice oleoresins is also a key challenge in its usage in India as in the B2C
segment as Home users require a very small quantity of spice oleoresins which otherwise may
pose a logistical challenge to distribute small quantities. The concerns of pesticide residues in
extraction of oleoresins also needs to be addressed and Spices Board is working towards
mitigating this risk.

As of now, the sector focus in on export markets and the industrial segment like hotels, bakeries
etc. Huge scope exists for expanding the market to include home users, caterers and industrial
canteens. The usage of spice oleoresins is largely used for Italian, Mexican and other continental
dishes and not much in Indian and especially Kerala cuisine. Wide research and development is
key to explore use of oleoresins in Kerala or India cuisine where in the current scenario the level
of research has been sub-optimal. Research to find new applications and new markets for spice
oleoresins is lacking and is to be explored. Aggressive marketing for increasing usage of
Oleoresins in the home users market will create new avenues for expansion in the B2C segment.

Bamboo-based products 59

Revenues CAGR % contribution to Potential Exports

GSDP Districts

`
Bamboo is
major export
item in India, - - Wayanad, Kozhikode,
-
with global Kannur
market valued
at INR 500 Bn

59
Kerala agriculture dept. 2. State profile of Kerala MSME report 2014-15, http://www.financialexpress.com/archive/kerala-plants-
chinese-tech-for-rs-100-cr-bamboo-profit/1263634/ Bamboo crafts of Kerala, State Bamboo Mission 5. Forest Survey of India 6. National
Bamboo Mission, Kerala Research Programme
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 Study on Investment Potential in Kerala

State wise % Distribution of Bamboo Areas In Recorded Forest to

India (2011)
10%
8.2%
8%
5.9% 5.9%
6%

4% 2.9%
2.3%
1.6%
2%

0%
1
Andhra Pradesh Gujarat Karnataka Kerala Maharashtra Tamil Nadu

Usage of Bamboo
Paper

Internal
17.24% Consumption
22.99% Scaffolding

21.84% 10.34%
Handicrafts

27.59% Miscellaneous

Major Bamboo products: Mats and Reeds, Bamboo Ply, Curtains, Furniture, Handicrafts
Bamboo the “Poor man’s timber” is a major export item in India, with a global market valued at INR
500 Bn. In Kerala as of 31-Mar-14, 2,20,000 tonnes of Bamboo were available. A unique feature of the
Kerala bamboo industry is that 67.3 per cent of the extracted bamboo comes from home gardens rather
than from forests. 25,000 weaving families are dependent on State Bamboo Corporation. There are
about 554 bamboo units registered with Kerala state bamboo mission. Furniture and interior products
are gaining popularity. The current level of global and national trade in bamboo and bamboo products
put together is estimated at over $ 4.5 billion in 2005. Mats and baskets are two important products
catering to the house-hold industry.

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 Study on Investment Potential in Kerala

Tyre Manufacturing60

Potential
Revenues CAGR % contribution to Exports
Districts

` GSDP

Kottayam,
-
- ~12% 60 - Ernakulam,
Palakkad

Tyre Sector Demand (2015-16)

Tyre Product Mix (2015-16)
Off-the-
Road
Vehicles Others Auto
1% Tractors 1% mobile
Exports
9% companie
11%
2 s
Wheelers 28%
6% Passenger
Vehicles Customer replacem
23% Vehicles ent
60% 61%

Tyre Sector Demand (2015-16)

25%
20%
22%
15% 13%

10%
5% 5%
5%
0% -2%
2010-11 2011-12 2012-13 2013-14 2014-15
-5%

60
Report on Tyre Sector, by ATMA-ICICI direct research, Indian Tyre Industry – ICRA Report 2015-16
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 Study on Investment Potential in Kerala

Select Key Players – Kerala

• Apollo Tyres –Invested INR 300 Cr plus in Cochin plant for producing industrial tyres for abroad
market
• MRF Tyres – Produces tyre, tubes, and flaps
• Tollins Tyres – It has manufacturing unit in Kalady, Ernakulam
Tyre export was in decreasing trend during 2015-16 due to pressure from low-priced Chinese Tyres,
resulting in price cuts across industry segments. Imports fell from 17% (FY 2015) to 12% (FY), again
due to inflow of Chinese tyres in various market segments. Revenues saw decrease of 2%. Prices of
Natural Rubber fell by 15% during 2016 leading to operating margin expansion to 19.1%. Indian tyre
demand grew at 4%-5% during 2015-16, with 3% growth in volume demand from Original Equipment
Manufacturer (OEM) segment. Indian tyre demand is expected to grow 6-7 % during 2016-19). Revival
in auto mobile sector demand and economic activity driving urban purchases contributing as main
factors for increased demand. Truck and bus radial tyres is the fastest growing category in the Tyre
industry. Tollins Tyres (Ernakulam based company) is the first Indian brand to survive in the tough
market supplying to the US market as well.

Footwear Manufacturing 61

Kerala CAGR of % contribution to Potential

Indian Market Kerala GSDP (2013) CAGR of India
Market Size Investments
Exports
(2013)

`
20.28%
Kozhikode,
700 Cr 15 – 20 % 0.18% USD 425.67
Malappuram, Thrissur
Mn (India)

Footwear Manufacturing units

Other Districts
32%

Kozhikode
68%

61
http://www.business-standard.com/article/economy-policy/kerala-footwear-industry-becomes-a-rs-700-cr-sector-
113112700227_1.html#, Indian Footwear Industry – 2015, ICRA Research, Economic times
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 Study on Investment Potential in Kerala

Increased employment opportunities for women in the footwear manufacturing industry as it involves
a lot of processes that can be handled by women. Footwear design offers a wide range of bright
employment opportunities in technical, designing and management area. Size of Indian Domestic
Footwear Industry is estimated to be worth 20,000-25,000 crores. Growth of Indian footwear sales
increased to 17% in 2015, compared to 16% in 2014. China is the world leader in footwear production.
87 % of shoes are made in Asia, with China as the main producer. India exports about 115 million pairs
of which 95% of its produce meets its own domestic demand. Majority of footwear made in the country
is non-leather. Out of the total 125 footwear production units, 85 units were in Kozhikode. 90% of states
manufacturing units depends on local market. Exports of Footwear in India valued at to $ 425.67 Million
in 2016 ($ 1446.70 Million in 2015). Manufacturers based in Kozhikode is emerging as the second non-
leather footwear hub after Delhi, recording a 132% rise in business.

VKC Case study 62

• VKC group was established in 1968 known for
plywood and match industries then
• VKC has 20 manufacturing units in Kerala, Tamil
Nadu, Seemandhra, Karnataka, Gujarat and West
Bengal
• VKC products are available in the Gulf countries,
Singapore and Malaysia
• VKC manages its extensive supply chain through a
combination of units and depots spread across 14
states in India
• VKC footwear – The brand developed after
introducing Hawai slippers in 1986 and with
making changes according to fashion trends,
newer fashionable models emerged in the market
• The foresight of Mohammad Koya paved way for
the phenomenal growth of VKC group
• Current brand portfolio is led by VKC Pride
followed by VKC Lite, VKC Trendz, VKC Junior,
Walkaroo, Skalino, and Vestire
• They have more than 400 designs for Gents, Ladies
and Kids across Sandals, Floaters, Shoes,Flip-flops
and Hawai

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62
http://www.vkcgroup.com/aboutus.php, Dhanam Publication “Hot Brands of Kerala” Vol -i
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 Study on Investment Potential in Kerala

Rubber – Other Products 63

% Potential
Production CAGR Key Investments Exports
contribution Districts
to GSDP

`
Kottayam,
Surgical Pharma Idukki,
- 9.8% - USD 2.6 Bn
Products Alappuzha,
Ernakulam,

Rubber Product Mix (2013-14)

Tread rubber
30%
36%
Dipped goods

Rubber matings

10% Rubberised coir, jute products

13%
11% Others

Turn over YoY Growth rate (2010-15)

13.60%
10%
6.90%
5.50%
3.20%

2010-11 2011-12 2012-13 2013-14 2014-15

Though Kerala contributes about 85% of total production of rubber, state lags behind producing rubber
products. Indian Rubber products industry consists of nearly 4500 units generating about 5.5 Lakhs
direct jobs. India imports 50.000 tonnes of rubber annually and China is the main competitor in rubber

63
Report on Non-Tyre rubber manufacturing, Rubber skill development council; Asian Business Media - Rubber Asia report; Rubber Industry in
India, Report No. 119 of Rajya Sabha; http://www.business-standard.com/article/markets/import-of-non-tyre-rubber-products-jump-32-in-two-
years-115100800724_1.html ; http://www.indianmirror.com/indian-industries/rubber.html
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 Study on Investment Potential in Kerala

products industry. Other upcoming players are Vietnam, Thailand and Malaysia. Kerala has the highest
number of rubber products manufacturing units (~900). Maximum number of units are into molded
goods, tread rubber products, dipped goods and adhesives and the major units are in MSME sectors.
Major Product segments include surgical pharma products, Rubberized fabrics, Rubber covered
rollers, Auto cycle parts, Rubber covered rollers, Sheeting, Rubberised coir, jute products, Moulded
products, extruded products, Foam products, Beltings, sports goods, cables, Tubes, Hoses, adhesives
etc.

Electronics – Hardware 64

Indian
CAGR of % Investment Potential
Market Exports
Kerala contribution potential Districts
size
to GSDP

`
INR 12% ~1.5% Electronics Park ~ Thiruvananthapuram, ~20% of total
171000 20000 Lakhs Ernakulam, Kannur, production
Cr
2
Palakkad

India Market 50.00% Production growth

Strategic 40.00%
Computers Equipment Consumer
10% Electronic 30.00%
s
30% 20.00%
C&B
Industrial Electronic
10%
Electronic Compone 10.00%
s nts
21% 21% 0.00%
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
-10.00%

-20.00%

Green Field Electronics Manufacturing clusters are being setup in Ernakulum. CAGR of Power Control Instruments
is 13.74%. Mobile devices are expected to grow at a high CAGR of 33.4 % between 2013 and 2020. Increasing
demand for defence equipment's has boosted the production of electronics goods. Companies increasingly
spending on R&D and stepping up innovation. Increasing penetration of high-end electronics products such as
High Definition TVs (HDTVs), LCDs, LEDs, and tablet. Growth in the hardware segment is expected to far outpace
the overall growth of electronics goods production in the country (CAGR of 10.1% over the same period). As per
Make in India Initiative, Electronic Development Fund Policy has been approved which would rationalize an
inverted duty structure. Indian electronics and hardware industry is expected to reach US$ 110-130 billion by 2018.
Key Players: KELTRON, TELK, TRACO, KSIDC, KINFRA, IT Parks, Startup village, T-TBIC, CDAC, OEN, SFO, FCI,
BPL etc.

64
Dept. of Electronics & Information Technology, Make in India, KPMG analysis,Industrial Brand Equity report
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 Study on Investment Potential in Kerala

V-Guard Case Study 65

• Across India, V-Guard is now synonymous with

high-quality electronic, elec­trical and
electromechanical equipment
• Their products ranges from trailblazer voltage
stabilizer to pumps and water heaters and wires
and cables. The company now manufacturers
and markets voltage stabilizers, digital UPS,
inverter and inverter batter­ies, electric water
heaters, solar water heaters, domestic pumps,
agricultural pumps, industrial motors, domestic
switch gears, distribution boards, wiring cables,
industrial cables, induction cook­ tops, mixer
grinders and fans.
• V­ Guard is now present in 29 states, and is
looking for acquisitions to expand its reach
• It has over 500 distributors, 5,000 direct dealers,
20,000 retailers and service cen­tres across the
country

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65
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 Study on Investment Potential in Kerala

Gems and Jewellery

% Potential
Revenues CAGR Key Investments Exports
contribution Districts
to GSDP

`
Kalyan Jewellers – Exports
INR 900 Cr contributed
~ INR Thrissur,
5.4% 6 to 7% 67 Joy Alukkas – INR 14.8%66 to total
80,000 66 Kozhikode
1500 Cr for setting up exports of
new outlets India

YoY export growth percentage

50 43.4
39.2
40
43 36.3
30 29.4 35
20
10
0
FY10 FY11 FY12 FY13 FY14 FY15

In the year 2013-14, Kerala contributed 30% of total exports of Gems and Jewellery of India. India’s
share in the global jewellery trade is 5.6% 68. In Kerala, there are 300 medium, small, and micro units
registered. 70% 69 of Kerala’s jewellery is manufactured in Thrissur. The city has around 2,500 70
household units employing about 30,000 people. Further, a Gem and Jewellery park is being set up in
KINFRA Park, Puzhakkal, Thrissur. Kerala’s demand market for gems and jewellery makes up around
20% of the total Indian market for this segment. Select key players are Kalyan Jewellers, Alukkas, Atlas,
Chemmannur, Bhima, Alapatt, Malabar Gold and Josco.

Electricity, Gas, Water Supply & other Utility services

1. Power Generation

CAGR % contribution Potential Exports

Revenues
to GSDP Districts

`
66
Gem & Jewellery Export Promotion Council, 2015 – 16 report
67
IBEF report on Gem and Jewellery
68
http://www.thehindubusinessline.com/news/national/food-processing-jewellery-hold-promise-for-kerala-exports/article7522860.ece
69
GEPC report
70
Report on Gold ornaments cluster, MSME, 2008
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 Study on Investment Potential in Kerala

Kozhikode, Palakkad,
INR 9126.41 -
~ 5-7% Thiruvananthapuram, -
Cr 71
Ernakulam

Kerala Energy Production (MW) Southern States Energy Requirement

(2012-13) v/s Availability (in MU) (2016-17)

Puducherry 2429
2437
49948
Telangana 50254
247.225
TN 96586
97277
432.04 60971
Karnataka
64302
AP 50366
Hydel 2412.73 50437
23194
Kerala 23318
Thermal
0 50000 100000 150000
Renewable Availability (MU) Requirement (MU)

The five southern states/Union Territories – Kerala, AP, Karnataka, Telangana, Tamil Nadu and
Puducherry have an overall shortage of electricity. These states have a total annual shortage of 4532
MU. Kerala’s shortage of electricity is met by purchasing power from the central pool. While energy
demand is expected to grow by 8-10% YoY for the next 10-15 years, the energy demand in Kozhikode,
Palakkad, Trivandrum and Ernakulam is estimated to grow at a pace above the national average.

2. Renewable Energy

% Potential
Revenues CAGR Key Investments Exports
contribution Districts
to GSDP

`
Idukki, Palakkad,
- - - INR 550 Cr 72 -
Thiruvananthapuram

71
Total revenue from tariff and revenue from non-tariff income estimated by KSEBL for the year 2014-15
72
http://www.thehindubusinessline.com/todays-paper/suzlon-plans-rs-550cr-wind-power-projects-in-kerala/article1734061.ece
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 Study on Investment Potential in Kerala

India
40000
35000
Production in MW

30000
25000
20000
15000
10000
5000
0
2010 2011 2012 2013 2014 2015
India 16817.04 19970.76 24914.24 28067.26 30873.986 34351

Kerala
250

212
202
194
186
172
Production in MW

165

165
200
162

158
150
137
134

150

100

39
37
35

35
35
28

50
0.84
0.03

0.03

0.03

0.03

0.03
0
2010 2011 2012 2013 2014 2015

Total Wind Small hydro Solar

The annual energy consumption in Kerala is more than the energy generated and there is an increasing
power mismatch. To identify potential energy producing geographies, land use patterns and
technology constraints need to be considered. Renewable energy contributes to only 8% of the total
Energy production in Kerala. Kerala has about 2400 Sq. Km waste land which can harnessed. There is
also huge potential for Wind and Solar energy; 2000 MW and 500 MW respectively. For handling and
executing the transition, it is necessary to build institutional capabilities as the transition would require
substantial capital and manpower resource investments in capacity building, training, new
recruitments, consultancy assignments and awareness programs. There is an opportunity for
renewable energy, but it must be considered taking into account the availability of surplus power in
the northern states. The Key Players for this segment are Suzlon Energy Ltd, Energy Management
Center Kerala, and Agency for Non-conventional Energy and Rural Technology (ANERT).

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 Study on Investment Potential in Kerala

Construction

1. Construction Materials - Cement Industry 73

Potential
Revenues CAGR % contribution Exports
Districts

` to GSDP

-
INR 1.8 Lakh Cr 9.7% Palakkad USD 144 Mn

Production of Cement (India)

300 270
248 255
250 230
206 216
186
Million Tonnes

200 161 174

150
100
50
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15

Cement Statistics (Kerala) – Million Tons & (% of Cement usage % share India
India)

Year Capacity Production Consumption 18%

2011-12 0.62 (0.25) 0.53 (0.29) 7.59

18%
2010-11 0.62 (0.26) 0.58 (0.34) 7.21 64%
2009-10 0.62 (0.28) 0.42 (0.26) 7.27
2008-09 0.62 (0.28) 0.60 (0.33) 7.89
2007-08 0.62 (0.31) 0.57 (0.34) 7.13
Housing Infrastructure Commercial

With nearly 390 million tonnes (MT) of cement production capacity, India is the second largest cement
producer in the world and accounts for 6.7 per cent of world’s cement output. Domestic cement
consumption is 324 million tonnes in FY15. Indian government’s focus on infrastructure development
to boost growth of cement. Housing sector accounts for a significant 64 per cent of the total cement
demand. The industry has around 65 companies having around 200 cement plants across India. Kerala
stand 19th in terms of State wise production of Cement. Andhra Pradesh and Tamil Nadu produces
almost 90% cement in South India. The Industry has been facing insufficient availability of the main
fuel coal. Malabar Cements, Travancore Cements and Penna Cements are key players in Kerala.

73
http://dipp.nic.in/English/questions/05122014/lu2247.pdf, http://www.cmaindia.org/cms/Kerala.php,
http://www.ibef.org/download/Cement_Industry_171113.pdf
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 Study on Investment Potential in Kerala

2. Construction Materials - Hardware 74

% contribution Potential
Revenues CAGR Exports
to GSDP Districts

`
-
INR 6699 Cr 17-18% Palakkad USD 24 Mn (2015)

Material handling equipment Earth moving equipment

segmentation segmentation
by market size by market size

5%

18%
37%

51% 51%

26%

12%

Cranes Forklifts Others Excavators Backhoes Loaders Others

The organized construction sector accounts for 55% of Earth Moving and Construction Equipment
(ECE) and Mining, irrigation etc. account for the rest. Equipment rental and leasing business in India
is small relative to developed markets and has a strong growth potential. ‘Earth Moving’ and ‘Material
Handling’ are the major segments. In 2010, Bharath Earth Movers began its manufacturing complex
in Palakkad, Kerala.

74
http://www.icra.in/Files/ticker/SH-2016%20Construction.pdf
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 Study on Investment Potential in Kerala

The key demand drivers of the industry are as follows:

• Revival of housing demand

• Huge infra investment by governments
• Stable land and Steel prices

Trade, hotels and restaurants

1. Tourism

% Potential
Revenue (2014) CAGR Key Investments Exports
contribution Districts
to GSDP

`
INR 25,000
14.75% 76 5.13% 77 - All Districts 5.23% 78
Crores 75

40.00% Trivandrum
36.31%
% Contribution to state tourism ---->

35.00% Kollam
Pathanamthitta
30.00% 35.12%
Alappuzha
25.00% Kottayam
20.00% Ernakulam
Idukki
15.00% 9.23%
1.43% Thrissur
6.59%
10.00% Palakkad
4.80% 2.18% 1.02%
5.00% 1.35% 0.71% 0.73% Malappuram
0.18% 0.12% Wayanad
0.00% 0.23%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Kozhikode
CAGR (2004 - 14) ----> Kannur
Kasaragod

In the last three years Kerala has provided hosting for more than 250 Lakhs domestic and foreign
tourists, and have generated more than INR 7, 50,000 Lakhs with an average growth rate of 7.53%. In
the last five years central Government has approved 25 projects and INR 254 Lakhs, which is 3.4% of
total amount sanctioned to all states. In FY15, USD1.13 million 79 has been sanctioned to Kerala for
development of tourism in the state. The tourism and hospitality sector is among the top five industry

75
Kerala average revenue, Department of Tourism, KPMG Analysis
76
Kerala average revenue, Department of Tourism, KPMG Analysis
77
Dept. of Economics & Statistics
78
Ministry of Tourism Govt. of India, KPMG Analysis
79
Report on Tourism, 2016, IBEF
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 Study on Investment Potential in Kerala

to attract the highest Foreign Direct Investment (FDI). Medical tourism, heritage tourism and rural
tourism has high potential in the state. In the year 2015 12% of total foreign tourists visited India came
to Kerala and Foreign Tourists arrival are high in the month of January. Key Players for the Tourism
sector are DTPCs, Hotels, Travel agents and Tour operators. Ernakulam, Trivandrum, Idukki, and
Alappuzha attracts 85% of the tourists arriving in the state. Kumarakom won the Responsible Tourism-
UNWTO-Ulysses Award for Excellence and Innovation in 2015.

Attractions

No. of Major tourist spots district wise as on 2015

1
Kannur 3
1
Kozhikode 7
2
Palakkad 3
4
Ernakulam 8
10
Kottayam 1
2
Patahnamthitta 2
7
Thiruvananthapuram 5
0 1 2 3 4 5 6 7 8 9 10

Source: Kerala Tourism Statistics, Department of tourism, KPMG Analysis

In 2014, Guruvayoor stood first in attracting domestic tourists, close to 21 Lakhs people visited.
Followed by Kochi city and Thiruvananthapuram. Meanwhile, foreign tourists arrival was most in
Kovalam, nearly 1.75 Lakhs tourists visited followed by Kochi and Poovar. In the FY16, the expected
revenue generation from tourism is USD 6.1 bn 80.

2. Hotels

Hotels available (2014)

Hotels growth rate
5 Star
Heritage/Classic Deluxe CAGR 10.20%
3% 6000
2%
2 Star 5000
8% 4 Star 5 Star 4762
19% 4% 4000
3238
3000

3 Star 2000 1854

64%
1000 1222

0
2000 2005 2010 2015

80
Report on tourism, 2016, IBEF
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 Study on Investment Potential in Kerala

Kerala has approximately 4762 hotels. As of Dec 2014, there are 409 classified hotels in the state 81.
Approximately 40% (1850) of the hotels have restaurant facilities. 50% of the hotels in Kerala are in
Panchayat areas. Of the total hotels approved in 2014, Kerala has a 36.8%81 of share. There are 45,000
people working in this sector79. 50% of hotel accommodations are concentrated in Idukki, Ernakulam
and Thiruvananthapuram 82.

Thiruvananthapuram 17.89%
Kollam 3.93%
Pathanamthitta 3.15%
Alappuzha 6.89%
Kottayam 5.77%
Idukki 15.73%
Ernakulam 12.70%
Thrissur 7.27%
Palakkad 4.24%
Malappuram 4.12%
Kozhikode 3.91%
Wayanad 8.67%
Kannur 4.22%
Kasaragod 1.51%
0.00% 5.00% 10.00% 15.00% 20.00%

In FY15, the total occupancy for hotels in Kerala was 53%. The total Income generated in 2014-15 is
approximately INR 3, 60,000 lakh79.

3. Restaurants

Growth rate

Restaurant Tea&Snacks stalls CAGR 11.40% CAGR 10.73%

40000 36506
35000
30000
25000
20540
20000 16461
15000 12073
10137
10000 8054
6086
3951
5000
0
2000 2005 2010 2015

81
Kerala Tourism Statistics, Department of Tourism, KPMG Analysis
82
Dept. of Economics & Statistics
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 Study on Investment Potential in Kerala

Income Distribution(2014) District wise Distribution of Restaurants

(2014)
Catering Others, Thiruvananthapuram 11.79%
services, 2.00% Kollam 6.72%
1.00% Pathanamthitta 2.86%
Alappuzha 5.60%
Kottayam 6.12%
Idukki 4.64%
Ernakulam 10.08%
Thrissur 9.41%
Palakkad 10.12%
Food & Malappuram 10.41%
beverages, Kozhikode 7.94%
97.00% Wayanad 2.61%
Kannur 7.64%
Kasaragod 4.05%
0.00% 5.00% 10.00% 15.00%

Source: Report on Hotels & Restaurants in Kerala – 2014-15, Dept. of Economics & Statistics, Kerala

Total income generated from restaurants in Kerala in FY14-15 was INR 5, 50,000 Lakhs 83. The
employment generated from restaurants in FY14-15 was approximately 1, 85,00083. There are 50-60 84
restaurant chains in the state. The maximum number of restaurants are in Kerala are in Trivandrum.

4. Tour Operators

Tour Operators (2014)

ALP TVM
3% 28%

EKM
69%

There are 35 approved Kerala based tour operators in Kerala as on June 2015. 25% of operators have
offices abroad83. Ernakulam has the maximum number of operators. In FY15, Thomas Cook, the
leading operator, had revenues of USD 711 Lakhs.

Transport, Storage and Communication

1. Transport/Logistics – Road, Air, Water

83
Report on Hotels & Restaurants in Kerala – 2014-15, Dept. of Economics & Statistics, Kerala
84
National Restaurant Association of India (NRAI) Report 2015
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 Study on Investment Potential in Kerala

Revenue % Investment Potential

(2014) CAGR contribution Potential Districts Exports
to GSDP

`
Thiruvananthapuram,
INR 27,592 Logistics
~10% 7.91% Ernakulam, Alappuzha, -
Cr 85 Cluster
Kozhikode

Growth rate - Freight movement

Value in Lakhs by Road Transport
2759223
3000000 20.00%
2383735 16.28%
2500000 2036179
1704876 15.00% 11.16% 12.11%
2000000 1465612 10.07%
1500000 10.00% 8.04%
1000000 10.08%
5.00% 2.00%
500000
0 0.00%
2008-09 2009-10 2010-11 2011-12 2012-13 FY06 FY07 FY08 FY09 FY10 FY11 FY12

Growth Rate - Freight movement Growth Rate - Freight movement

by Air Transport by Water Transport
50.00% 35.00% 29.92%
41.18% 30.00%
40.00%
25.00%
30.00%
20.00%
20.00% 13.33% 12.50% 12.42%
7.14% 7.41% 15.00%
10.00%
0.00% 0.00% 10.00% 5.29%
0.00% 2.52% -1.24%
5.00%
FY07 FY08 FY09 FY10 FY11 FY12 FY13
-10.00% 0.00%
2009-10 2010-11 2011-12 2012-13 2013-14
-5.00%

Transport infrastructure of Kerala consists of 3.31 lakh Kms of road, 1257 Kms of Railways, 1687 Kms
of Inland Waterways and 111 statute miles of Airways and 18 Ports. The sector has a high CAGR of
about 10%. Contribution of transport to GSDP is 7.9%, higher than the national average of 5.6%. Kerala
has high potential for organized water transport.
Indian logistics is estimated to grow at 15 to 20%. In Kerala, The transport and logistics sector is
expected to register growth at 1–1.5 x GDP, with EXIM expected to grow at 10 percent. Key trends
driving this include:
• Higher levels of outsourced logistics
• Increasing complexity of logistics services requirements
• Increasing orientation towards global best practices

85
KPMG Analysis; values based on 2012-13, Kerala GDP report Dept. of Economics and statistics
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 Study on Investment Potential in Kerala

Development of multi modal transport systems in Kerala would be a major contributing factor for
Kerala to be a logistics hub.

2. Transport/Logistics – Railways

CAGR % contribution Potential Exports

Revenues
to GSDP Districts

`
Ernakulam,
INR 1,345 Crore 0.34%
1.86 Thiruvananthapuram, -
(2014-15) (2014-15)
Palakkad, Kozhikode

% contribution of Railway Sector of Kerala to GSDP of Kerala

0.50% 0.47% 0.47%
0.46%
0.45% 0.43% 0.43%
0.41%
0.40%
0.39%
0.40%
0.35%
0.35%
0.30%
0.30%
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Kerala has a rail density of 27 per 1000 Sq. km, which is better than the rail density compared to
national average of 20 per 1000 Sq. km. As of September 2015, Southern Railway revenues was INR
4,546 Cr, an increase of 5.61% from 2014. Kerala provides the biggest share of revenues to Southern
Railway. However, there is a declining trend in percentage contribution of Railway GDP to the total
GSDP since 2008-09.

District wise GDP contribution of Railways to GSDP (2013-14) - constant price

30%
19.9%
20%
10.4% 9.4% 10.3%
10% 7.6% 8.8% 7.8% 7.6% 6.6%
4.8% 5.7%
0.9% 0.0% 0.0%
0%
1
Thiruvananthapuram Kollam Pathanamthitta Alappuzha
Kottayam Idukki Ernakulam Thrissur
Palakkad Malappuram Kozhikode Wayanad

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 Study on Investment Potential in Kerala

Thiruvananthapuram Central is an important hub for Southern Railways and is the largest and busiest
railway station in Kerala, holding capacity of 1572 coaches. Palakkad contributes the highest GDP on
railways among the other districts (19.9%), and Idukki the least.
Upcoming key projects of Kerala include
• Suburban train services (Thiruvananthapuram)
• Kochi metro project
• Light metro rail project (Thiruvananthapuram and Kozhikode)

3. Storage (Warehouse, Cold Storage, and Other Storage)

CAGR % contribution Potential Exports

Revenues
to GSDP Districts

`
INR 196 Cr Ernakulam,
20% 86 0.06% -
Thiruvananthapuram

Value in Lakhs
25000

20000

15000 19584
16227
10000 13577
11255
5000 9456

0
2008-09 2009-10 2010-11 2011-12 2012-13

As the food processing sector is booming in Kerala, there are high potential for storage segment.
Multiple ports and huge requirement for storage space makes Kerala an attractive investment center
for storage. Kerala has high untapped potential as compared to rest of the country. Government push
for infrastructure development and upcoming Vizhinjam port are major contributing factors. There is
a high potential for cold storages for export of Marine and Agro produce. However, high cost of land
and land acquisition may be a challenge.

<This space is intentionally left blank>

86
KPMG Analysis; values based on 2013-14 Kerala GDP report
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 Study on Investment Potential in Kerala

4. Communication – Telecom

% Key Potential CAGR of

Market CAGR Total
(2011-15) contribution Investments Districts
Size Exports
to GSDP

`
~INR 8,500 Thiruvananthapuram,
1.51% 1.6% - -
Cr 87 Ernakulam, Palakkad

YoY Growth of Telecom Subscriber base

15.00% 34.29 Mn
10.00% 31.36 Mn
5.00%
0.00%
-5.00% 2011 2012 2013 2014 2015 2016

-10.00% 3.3Mn
-15.00%
Wireless WireLine 2.3Mn

Availability of Service in % (Jan – Mar 2016)

Sistema (MTS) 99.98

BSNL 99.71
Tata 99.94
Reliance 99.93
Aircel 99.84
Idea 99.94
Bharti 99.49
Vodafone 99.08

87
Indiastat, KPMG analysis
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 Study on Investment Potential in Kerala

Wireless connections - Subscriber

base Wireline connections - Subscriber
base

Sistema Bharti Reliance

BSNL (MTS)1% Vodafone Vodafone 2% 2%
22% 22% 0% Tata
1%

Tata
5% Bharti BSNL
Reliance 13% 95%
6%Aircel Idea
1% 30%

In India, there are 10,588 Lakhs telecom subscribers. The telecom subscriber base in Kerala is 366
Lakhs 88 (44.54% Rural subscribers) as of March 2016. Wireless customer base is grown with a CAGR
of 2.18%88. Kerala has the tele-density of 102.271, which is second highest in India after HP.
Smartphone subscriptions is expected to grow four-fold 89. Kerala has 146 Lakhs88 internet subscribers
in the state as of March 2016. Among the wireless connections operators, Idea leads the table with 103
Lakhs customers. For Wireline connections BSNL is the clear leader having 95% of the share. Indian
telecom industry has the potential to generate 40 Lakhs job in five years. Incremental manpower
demand by communication sector - 275000 during 2017-2022 period.

5. Communication – Infotainment

% Key Potential CAGR of

Market CAGR Total
(2011-15) contribution Investments Districts
Size Exports
to GSDP

`
INR 8,228 Thiruvananthapuram,
12.47%90 1.58%90 - -
Cr 90 Ernakulam, Kozhikode

88
The Indian Telecom Services Performance Indicators, TRAI
89
Telecom sector study, IBEF
90
Kerala Economics and Statistics GSDP 2011-15
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 Study on Investment Potential in Kerala

Advertisement category share %

YoY Growth – Revenue in Lakhs
Out-of- Radio, 900000 822850
Home, 1.68%
2.15% Music, 800000 726738
Gaming,
2.29% 0.96% 700000 614025
578340
Digital 600000
Advertisin 500000
g, 4.24%
400000
Films,
Animation 12.32% TV, 46.30% 300000
& VFX, 200000
4.38%
100000
Print,
0
25.68%
2011-12 2012-13 2013-14 2014-15

TV Industry Performance Cable & Satellite Penetration

14.62% 14.53% Gujarat 79%

15.00%
14.50% 13.91% Maharashtra 85%
14.00% 13.45%
Andhra Pradesh 97%
13.50%
13.00% 12.46%12.70% Karnataka 94%
12.50% Tamil Nadu 99%
12.00%
11.50% Kerala 93%
11.00%
2010 2011 2012 2013 2014 2015 0% 50% 100%

Source: India Media and Infotainment Report 2015, KPMG

The Indian Media and Entertainment industry was worth USD 19 B 91n (2015). Kerala has 98 Malayalam
channels, 17 FM radio stations, and 6 private DTH operators registered. Among regional channels
Malayalam viewership is 5.6% 92. When looking at Advertisement Revenues - Print media leads with
39% of revenue, followed by TV (36%), Digital advertising (15%), OOH (5%), and Radio (5%). The big
spenders in print media are FMCG, Auto, Education, Real estate, Garments, Jewelry. For television
Media, the revenue breakup is 65% as subscription revenue and 35% as advertisement revenue92.

<This space is intentionally left blank>

91
IBEF report on Entertainment - 2015
92
India Media and Infotainment Report 2015, KPMG
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 Study on Investment Potential in Kerala

Financial Services
Non-Banking Finance Companies

Potential CAGR of
Market Size (India CAGR Key Investments Total
(2011-15) Districts
in 2015) Exports

`
~ INR 5.1 lakh Cr 93. 17.7% - All Districts -

YoY Growth of NBFC market

30.00% 26.15% 25.41%
25.00% 20.69%
20.00%
14.71%
15.00%
10.00%
5.00%
3.40%
0.00%
2010-11 2011-12 2012-13 2013-14 2014-15

NBFCs have ~47% share in retail financial market with banks. The top performing NBFC is only 5%
less in size with the top performing private sector bank. The NBFC sector has shown ~28% growth
rate in last ten years. There are ~350 94 Kerala based NBFCs in the market. Private players lead the
segment. Muthoot Finance, Manappuram Finance, Muthoot Fin Corp are the top three players in
Gold loan segment. There is a high demand for graduates in this sector.

<This space is intentionally left blank>

93
IBEF report on Financial services
94
MCA companies list
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 Study on Investment Potential in Kerala

Other Services
1. Healthcare – Service Delivery

% Key Potential CAGR of

Revenues CAGR contribution Investments Districts Total Exports
to GSDP
`
Ernakulam, Kozhikode, 5-6% of
Thiruvananthapuram medical
- 15% 95
6.5% 96
INR 600 Cr 97
tourism
market 98

Health Institutions

1255 1281
874 942
693
582

10 11 3 5

Allopathy (DHS) Allopathy (DME) Ayurveda (ISM) Ayurveda Medical Homeopathy

Education

Beds

37750 38400

12035
10079 3044 1355 975
2860 1259 945

Allopathy (DHS) Allopathy (DME) Ayurveda (ISM) Ayurveda Medical Homeopathy

Education

95
KPMG Analysis, CAGR of Indian Healthcare Service Delivery segment. Increase in medical tourism and higher affordability drives market growth
of Service Delivery segment. Kerala aims to be a healthcare hub in 5 years
96
State Health Account 2013-14, State Healthcare expenditure
97
Aster DM Healthcare to invest INR 600 crore in Kerala in 3 years
98
~USD 200 Mn (excluding wellness), Tamil Nadu attracts 40-50% of medical tourists
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 Study on Investment Potential in Kerala

1831724 Inpatients
1601505

478097
347334 251141
41102 53442 45667
9072 10564

Allopathy (DHS) Allopathy (DME) Ayurveda (ISM) Ayurveda Medical Homeopathy

Education

Outpatients

53057551 50168935

15543791
11690486
4544359 10481288 11839811
3341592 460756
386721

Allopathy (DHS) Allopathy (DME) Ayurveda (ISM) Ayurveda Medical Homeopathy

Education

Healthcare expenditure in Kerala is expected to increase with rising incomes and health awareness.
The state performed exceptionally well with respect to CMR 99 and MMR 100 health indicators but death
rate has increased (2009-14). Kerala has the highest per-capita expenditure on health 101. There is a high
demand for quality nurses/paramedical staff from state. Kerala has a better skilled workforce - doctors
and paramedical staff - compared to other states. The total number of doctors in the state is 20,554
and the total number of nurses is 33,382. Number of physicians per 1000 population is 1.263. The State
has a strong medical education foundation and has 2,900 seats for MBBS.

Private Allopathic Health Institutions Medical Education Institutions

20 17
CAGR 1.94% Govt Private
7000
15 13 13
6000
10
5000 10
6
4000
5 3 3
2
3000 1
2000 0
Modern Dental Homoeo Ayurveda Siddha
1000 medicine
UG
0 Seats 2900 166 250 900 50
1986 1995 2004 2015

99
Child Mortality Rate
100
Maternal Mortality Rate
101
National Health Profile 2015, Central Bureau of Health Intelligence
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Source: Ecostat – Health report, KPMG analysis, Kerala Medical Education

State’s average annual expenditure on health is about INR25, 000 crore which is ~5% 102 of State budget
(2013). Total bed strength is 1, 00,687. Bed density in the state is in accordance with WHO standards
of 3.6 per 1000 population. The average population served per bed is 9183. The private sector
contributed to 78% of hospital beds. The state has the presence of large multispecialty hospitals.
Medical Trust Hospital has 759 beds and KIMS has 650 beds.
Government of Kerala launched e-Health project to build an Integrated Healthcare Cloud which will
also be shared by the private healthcare institutions and practitioners in order to build single data
repository of citizen health record.
Health care services in Kerala is known to provide “International standard” treatments at “affordable
prices”. Presently, the most preferred medical tourism destinations are Chennai, Mumbai, AP and
NCR. Government & private sector are working in tandem to promote medical tourism in the state.
Growth in medical tourism is expected to drive state-of-the art heath infrastructure in the state. Kerala
has been synonymous with Wellness & Ayurveda and has the potential to attract medical value
travellers.

2. Healthcare – Medical Insurance

Potential CAGR of Total

CAGR % contribution
India Market Districts Exports
to GSDP

`
INR 23,436 Cr - ~0.31% 103 All Districts -

General Insurance Density (INR)

1600 2006-07 2010-11 2012-13

1397.4
1400
1199.9
1200 1135.4

975
1000 923.7
836.7 800.2
769
800 651.8
709.2 689.1
624 641.5
596.8 559.6
600

400

200

0
Kerala Tamil Nadu Karnataka Andhra Pradesh Maharashtra

Penetration 1.16 0.58 0.73 0.63 0.84

102
Department of Health Services, Govt of Kerala, KPMG analysis
103
Penetration is % contribution GDP, 27% is the contribution of health to general insurance, IBEF Insurance market report, August 2015
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India details FY 15 Unit

Non-Life Insurance market size 14 USD Bn

USD to INR 61.5 INR

Non-Life Insurance market size 861 BN INR

Medical Insurance market share 27%

Medical Insurance market Size 23436 INR

Health Insurance penetration in India is 0.7% 104. Among the total general insurance market, health
insurance has got share of 27.8% 105. Private sector players contribute 50% of total revenue generated
in the industry.

Rashtriya Swasthya Bima Yojana is the Comprehensive Health Insurance Scheme of Kerala 106. There
are 4.13 Crores active smart cards users. Under the scheme, United India Insurance Company Ltd
provides insurance at all 14 districts, which includes, 140 govt. hospitals and 165 private hospitals.
Kerala’s percentage contribution to national claims increased by 3%, comparatively less than the other
states under the RSBY scheme. However, there was an increase of 13.86% (from 76,751 claims in 2012-
13 to 87,390 claims in 2013-14) within Kerala. There are 132 insurance brokers in the state.

Key players include Star Health Insurance, Max Bupa, Reliance General Insurance, ICICI Lombard, Bajaj
Allianz, Oriental Insurance, United India Insurance, New India Assurance, National Insurance.

3. Healthcare – Medical Equipment

Segmentation of Private Equity Investments in Health Care in India, 2015

60%
49%
50%

40% $ 85 million (of the total $ 1,584

million)
30%
18%
20% 15%
10%
10% 5%
1% 1%
0%
1
Pharma Hospitals Diagnostics Devices Biotech Wellness Others

104
Performance of Insurance Industry in India: A Critical Analysis, 2015, IJMSER,
105
IBEF report 2013
106
Indiastat, Arogya Keralam
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Source: KPMG report on India Healthcare start-ups

Indian Medical Equipment & Devices Market – USD 4.4 Bn

Medical Disposables
and Supplies
19%

Medical &
Diagnostic
Medical Implant Equipment
25% 56%

Source: KPMG report on Indian Health sector

Per capita spending on medical devices (in $)

50
42
40
India has the
30 lowest at $3
21
20

10 7
3
0
Russia Brazil China India

Kerala has fairly large number of small/medium scale medical product manufacturing companies 107.
The Government has introduced various initiatives to address the challenges of medical devices
industry. It is a largely unregulated market with many local players. These include

• 100% FDI in medical devices

• Draft Drugs & Cosmetics Amendments Bill (2015)
• Proposal to introduce Medical Devices Regulation Bill for maintaining national system of
controls for medical devices

Medical devices industry in India is predominantly import driven accounting for over 65% of the total
market sector. Imports and exports of medical devices saw growth rate of more than 10% annually
(2011 to 2014 period). During the period April 2000 to March 2016, medical and surgical appliances
received $ 1,097 108 million (0.4% of total FDI in India. (Total FDI being $ 288,634 million). Medical

107
http://dir.indiamart.com/kochi/medical-equipment.html
108
FDI, DIPP Govt. of India
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Devices and Equipment Industry is growing at rate of 15%, which is much faster than the 10% growth
rate of the entire Health Care sector.

4. IT/ITES

% Key Potential CAGR of

Revenues CAGR contribution Investments Districts Total
to GSDP Exports
`
Thiruvananthapuram,
~INR INR 7,000 USD 125
~25% 109 9-10% 110 Ernakulam,
12,000 Cr Cr 111 Mn 112
Kozhikode, Thrissur

Technopark
47100
2010 2015

28000

10100
3850 4900
2040 200 355

Turnover (Including Investment Companies Employees

Export Turnover)

CAGR 27% 24% 15% 14%

Infopark Cyber Park

3150 4
2000
0.981
237 0.254

Turnover Investment Companies

Turnover Investment Companies
(Including
(Including
Export
Export
Turnover)
Turnover)

109
CAGR of Technopark (2011-15);
110
GDP Quick Estimates 2014-15 KPMG Analysis - Tourism & IT sector contributes maximum to Service Sector. Service sector contribution to GDP –
63%, 10-12% for Tourism, 13% for Other services
111
Economic Review 2015, Government of Kerala has provided an amount of ₹374.57 crore during 2015-16 for the development of core IT
infrastructure, ITeS, e-governance activities and incentivising investment in the sector
112
2015 Combined exports of Technopark, Infopark and Cyber Park
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Karnataka is the leading state for IT/ITES with 37% share in Software Exports made by registered units
through STPI 113. Meanwhile, Kerala has emerged as key investment hub due to rapid development of
infrastructure, high literacy rate and favourable policies. The growth of software exports is more than
double of the national average. The industry is growing at a CAGR of about 25% creating immense
opportunities in expanding the IT/ITES business sector. The State has a large employee base with
around 75,000 IT professionals working in Thiruvananthapuram, Kochi and other centres. Technopark
in Thiruvananthapuram, is one of the largest Technology parks in Asia, and had a 27% CAGR for its
turnover for the period 2011-2015. Akshaya Centers had a turnover of INR 32.71 Cr in 2015. KSITL has
131 Companies and 1523 Employees. The key players for this segment are - Kerala State Information
Technology Mission (KSITM), Indian Institute for Information Technology and Management – Kerala
(IIITM-K), Technopark, Infopark, Cyberpark, Kerala State Information Technology Infrastructure Ltd
(KSITIL), International Centre for Free and Open Source Software (ICFOSS), and Kerala Start-up
Mission. The top exporters are – Tata Consultancy Services, Infosys, and Wipro.

5. Education & Skill Development

% Key Potential CAGR of

Revenues CAGR contribution Investments Districts Total Exports
to GSDP
`
Deemed
University
INR 4,20,000
~27% 3.29% 114 Development All Districts -
Cr
USD 50
Million 115

Education Sector - Market Size (INR Crore)

450000
400000 51000
Market Size (INR Crore)

350000 CAGR
79000
300000 K-12 16%
250000 19000 Higher
14%
200000 Education
48000
150000 7000
Vocational
29000 28%
100000 Education
50000
88000 160000 290000
0

K-12 Higher Education Vocational Education

113
STPI – Software Technology Parks of India
114
2005 data (State Profile MHRD)
115
Source: IBEF, Byju’s, an education technology start-up, has raised US$ 50 million from the Chan Zuckerberg Initiative, founded by Facebook
founder Mark Zuckerberg, and existing investors Sequoia Capital, Sofina SA, Lightspeed Venture Partners and Times Internet Ltd
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 Study on Investment Potential in Kerala

Education Sector Market Size - 2012 Breakup of Manpower 2012-2017

(INR Crore)
19000, Minimally
8% Skilled,
Semi- 28%
Skilled,
38%
48000,
21%
160000,
71%

Skilled,
34%

Source: KPMG Analysis, KPMG Report on Education & Skill Development

In Kerala there is an incremental skilled manpower demand of ~1,500 thousands people across
industrial segments. The proportion of incremental supply of minimally skilled manpower is expected
to decline from 38% in the 2012-17 period to 32% in the 2018-22 periods. Incremental manpower
demand of 193000 during 2017-22 period. The district of Ernakulam, Thiruvananthapuram and Thrissur
account for almost 38% of the manpower requirement. The trend of migration is expected to be
outward across skill levels. There are ~17,100 116 schools in the state till Higher Secondary levels with
enrolment of ~60116 Lakhs children. Pradan Mantri Kaushal Vikas Yojana - runs on a total of INR 12,000
crore budget, As of July, 2016 19.73 lakh students were trained.
Indian International School market is emerging market and is estimated to be ~INR 2,500 Cr. The
growth is driven by increasing awareness on quality education and expat/NRI movement. IB schools
have grown at ~14% YoY in last 5 years.
For Higher Education, growth driven by Government effort to increase the Higher Education GER.
Kerala has around 40 colleges per one lakh population with GER of 27%. There are no large private
universities in the state. The estimated enrolment in colleges is 5, 22,231 at the under-graduate level
and 63,579 at the post-graduate level. In Kerala, there are 12 State Universities, 241 Engineering
colleges, 60 Polytechnic colleges, 83 Management schools and 41 Pharmacy Colleges.

Type of college Private Private Aided Total Private Government Total

Un-Aided
# 720 196 916 193 1109

Enrolment 265906 215026 480932 92710 573642

Type of Hostel Boys Hostel Girls Hostel Others Total

# 614 1134 34 1782

Intake 69218 143658 2055 214931

116
DISE 2014-15, IB, CIE, Census 2011, AICTE, MHRD, DoTE – Kerala
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In skill creation, there is a large number of existing Large to Small size players, attracted by a low cost
of entry for this segment. (Education and Skill Development Services). Reskilling of 1.2 Mn workforce
who have returned from Middle East is a key challenge and a big opportunity for Kerala. For Additional
Skill Acquisition Programme, approximately 50,000 Candidates are trained in close to 1,000
institutions. At the Kerala Academy for Skill Excellence 1, 40,000 are trained annually. There is also the
Skill Development Institute, ac collaboration of Kerala government and Bharat Petroleum Corporation
Limited (BPCL).

6. Beauty & Wellness Industry

% Key Potential CAGR of

Revenues CAGR contributio Investments Districts Total
n to GSDP Exports
`
INR 1 lakh
17% 117 - - All Districts -
Cr.

Market Size of Indian Beauty and Wellness Industry

90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2012 2013 2014 2015 2016 2017 (E)

Counter Sale of Beauty Products Beauty and Wellness Fitness and Slimming Rejuvenation

Source: https://www.statista.com/statistics/550507/indian-market-size-beauty-and-wellness-industry-by-category/

Segments Services
Beauty Services and Cosmetic Products Salons & Beauty Centers, Cosmetic Treatments
Fitness and Cosmetic Products Fitness & Slimming Centers
Nutrition Dietary Supplements, Health food
Treatments centers like Ayurveda, Unani,
Alternate Therapy
Homeopathy

117
http://www.dailypioneer.com/avenues/business-of-beauty.html
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Segments Services
Rejuvenation Spas

Salons Day Spa Gym

Average Area (sq. ft.) 1200 - 1500 1200 -1500 4000 - 5000

Average capex (INR

40 - 45 40 - 50 180 - 220
Lakh)

Average revenues per

40 - 60 30 - 40 180 - 200
annum (INR Lakh)

Operating Margin (%) 25 - 30% 30 - 35% 40 - 45%

Payback Period
4-5 4.5 - 6.5 2.5 - 3.5
(Years)

The growth drivers for the Beauty & Wellness Industry are –
• Increased purchasing power and discretionary expenditures
• Favourable demographic age profile
• Swelling urban population
• Availability of world class products

The challenges faced by the industry are –

• Lack of skilled hairstylists
• High attrition
• Lack of financing and bank funding
• Scaling

Differentiators for this industry are –

• Increased purchasing power and discretionary expenditures
• Favourable demographic age profile
• Swelling urban population
• Availability of world class products

7. Bakery & Confectionary Industry

% Key Potential CAGR of

Market Size CAGR contributio Investments Districts Total
n to GSDP Exports
`
INR 5,000 Cr INR
8% - - All Districts
(E) 1,289 Cr

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 Study on Investment Potential in Kerala

India’s exports to top 10 countries

Quantity in MT
Product: Bread, pastry, cakes, biscuits & other bakers 118
Value in Mill. US$

Sl No. Importing Country QTY(2014) Value(2014)

1 USA 23,546.32 56.79

2 Canada 4,057.38 9.97

3 United Kingdom 3,371.20 8.65

4 Australia 3,358.87 7.49

5 United Arab Emirates 2,686.00 4.68

6 Singapore 1,410.01 4.14

7 Nepal 2,809.67 2.32
8 Saudi Arabia 655 1.37
9 Oman 564.09 1.18
10 New Zealand 375.33 1.07
Total 42,833.87 97.66

The drivers for the Bakery Industry are:

• Changing lifestyles leading to an increased consumption of ready-to-eat bakery products in
urban households for lunch and dinner
• Rapid urbanization
• Increased participation of private sector due to recent investments
• Growth in organized retail

118
http://agriexchange.apeda.gov.in/
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 Study on Investment Potential in Kerala

The growth rate in sales is at 150%. The per capita consumption is still low, with 3 kg of bread per
year and 1 kg of biscuits per year being consumed. Bread and biscuits hold 82% of revenue share in
bakery products. The key players for this sector are Britannia, Parle, ITC, and QSR like McDonald’s,
KFC etc.

Kerala’s potential sectors

Ranking Methodology
The methodology used to rank the potential sectors categorises the domains into different criteria’s
and labels them with appropriate weightage as mentioned in the table below

Category/Criteria Description Weightage

Potential (Basis above) Very High and High Potential

Very High weightage
summary of findings sectors

• High GSDP Contribution

• High Growth Potential
Class 1 Criteria High weightage
• High MVA/TIVA (wherever
applicable)

• Contribution to Employment
generation
• Aligned to State
Class 2 Criteria Medium weightage
Government’s focus new
growth sectors
• Scope for large investments

High GSDP High Growth

High MVA High TIVA
Contribution Potential

High weightage

Contribution to Aligned to State

Scope for large
Employment Government’s focus
investments
generation new growth sectors

Medium weightage

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 Study on Investment Potential in Kerala

Potential sectors – Top 20 sectors

Key
Sector Sub-sector Potential Potential Districts Rank
Criteria
Trade, Hotels
Tourism/Hotel/Restau
and Very High All districts 1
rants/Tour Operators
Restaurants

Ernakulum,
Healthcare (Service Kozhikode
delivery, medical Thiruvananthapura
Other Services Very High 2
equipment,
m, Insurance - All
insurance)
districts

Thiruvananthapura
Other Services IT & ITES Very High m, Ernakulum 3
Kozhikode, Thrissur

Bakery &
Other Services Very High All districts 4
Confectionery

Instant Foods -
Alappuzha,
Food processing - Thrissur, Palakkad,
Manufacturing Instant Foods, Very High Wayanad 5
Oleoresins Oleoresins –
Ernakulam,
Palakkad

Other Services Skill Development Very High All Districts 6

Manufacturing Gems & Jewellery Very High Thrissur, Kozhikode 7

Financial Non-Banking
High All districts 8
Services Financial Services

Transport, Thiruvananthapura
Logistics/Transport –
Storage & m, Ernakulam,
Road, Coastal, Inland, High 9
Communicatio Alappuzha,
Air
n Kozhikode

Ernakulam,
Manufacturing Construction High Thiruvananthapura 10
m

Food processing - Fruits & Vegetables

Manufacturing Fruits & Vegetables, High – Kannur, Kollam, 11
Dairy Dairy –
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Key
Sector Sub-sector Potential Potential Districts Rank
Criteria

Thiruvananthapura
m, Palakkad

Wood - Furniture Ernakulam,

Manufacturing High 12
Making Malappuram

Kozhikode,
Rubber-based -
Manufacturing High Malappuram, 13
Footwear
Thrissur

Thiruvananthapura
Manufacturing Engineering High 14
m, Ernakulam

Agriculture & Idukki, Kozhikode,

Exports High 15
Allied Activities Kottayam

Trivandrum,
Alleppey,
Manufacturing Shipbuilding High 16
Ernakulam,
Kozhikode

Other Services Beauty & Wellness High All Districts 17

Other Services Education High All Districts 18

Thiruvananthapura
Manufacturing Electronics High m, Ernakulam, 19
Kannur, Palakkad

Transport,
Thiruvananthapura
Storage &
Infotainment High m, Ernakulam, 20
Communicatio
Kozhikode
n

Potential Sectors – MVA Ranking

Sectors and sub-sectors have been ranked based on their market value and the potential districts have
been mapped against each.

Sector Sub-sector Potential Potential Districts Ranking

Wood - Furniture Ernakulam,

Manufacturing High 1
Making Malappuram

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 Study on Investment Potential in Kerala

Sector Sub-sector Potential Potential Districts Ranking

Thiruvananthapuram,
Manufacturing Engineering High 2
Ernakulam

Kozhikode,
Manufacturing Footwear High 3
Malappuram, Thrissur

Bakery &
Manufacturing Very High All districts 4
Confectionery

Manufacturing Gems & Jewellery Very High Thrissur, Kozhikode 5

Thiruvananthapuram,
Manufacturing Electronics High Ernakulam, Kannur, 6
Palakkad

Food Processing –
Alappuzha, Thrissur,
Manufacturing Instant Food Very High 7
Palakkad, Wayanad
Products

Food Processing -
Manufacturing Fruit & Vegetable High Kannur, Kollam 8
Processing

Potential Sectors – TIVA Ranking

Similarly, the ranking exercise has been done to rank the sectors and sub-sectors based on their Trade
in Value Added (TiVA), mapping with their potential districts.

Sector Sub-sector Potential Potential Districts Ranking

Manufacturing Gems & Jewellery Very High Thrissur, Kozhikode 1

Thiruvananthapuram,
Technical
Textile Very High Ernakulam, Thrissur, 2
Textiles/Garments
Palakkad, Kozhikode

Kozhikode,
Manufacturing Footwear Very High 3
Malappuram, Thrissur

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 Study on Investment Potential in Kerala

Sector Sub-sector Potential Potential Districts Ranking

Instant Foods -
Food processing - Alappuzha, Thrissur,
Manufacturing Instant Foods, Very High Palakkad, Wayanad, 4
Oleoresins 0leoresins - Ernakulam,
Palakkad

Bakery &
Other Services Very High All districts 5
Confectionery

Manufacturing Wood - Plywood High Ernakulam, Kottayam 6

Agriculture &
Allied Exports High All districts 7
Activities

Agriculture &
Alappuzha, Kozhikode,
Allied Marine Exports Medium 8
Ernakulam, Kollam
Activities

Fruits & Vegetables –

Food processing -
Kannur, Kollam, Dairy –
Manufacturing Fruits & Vegetables, High 9
Thiruvananthapuram,
Dairy
Palakkad

Roadmap – Way forward to achieve Kerala’s sector development

aspirations
The industrial environment in the country is broadly changing in favour of new-emerging sectors in
high value-added manufacturing aided by the central government’s vision of “Make in India”. Kerala
can utilize the immense potential owing to its huge strategic advantages to tap its full potential in
industrial development.

Strategic Advantages

Kerala has several strategic enablers to bank on for the long term industrial growth of the State

• Availability of educated human resource

• Strategic location | southern tip
• Kochi port, one of the largest on the southern Coast of the country
• Competitive cost of doing business
• Stable political leadership
• Industrial Infrastructure being setup

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 Study on Investment Potential in Kerala

Opportunities

The State Government intends to harness key enablers stated below to create opportunities for the
State in repositioning itself as a development hub and a major destination for investments.

• Claim the position of a leading industrial friendly state

• Harness the significant untapped potential in the form of value addition to natural resources, good
infrastructure, port advantage
• Develop Kerala which is located in the southern coast, as a gateway to tap investments from as
well as trade with Middle East Asia

Thrust sectors of Kerala

Wood –
Tourism &
IT & ITES Electronics Furniture Healthcare
Hospitality
making

Rubber
Food Gems and Bakery &
based
Processing Jewellery Confectionery
products

Make in Kerala Sectors

Processing
Kerala Food Brands Processing Light Manufacturing
Clusters Healthcare

Urban Infrastructure
Nano portfolio Medical Village
Service Hub Tourism Parks

Skill Development Logistics

State-of-the-art training centers Agriculture cold storage

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 Study on Investment Potential in Kerala

Kerala’s 5-point Sector Development Strategy

To achieve key development objectives to bring about a transformation in Kerala’s sectoral

development, the state will need undertake a combination of policy, investment promotion,
infrastructure, skilling and other interventions to channelize efforts into attaining prominence in the
thrust sectors.

1 2
Business- Manufacturin
friendly g Clusters
Destination

5
3
Expert Skill
Brand Kerala
Zone

4
Entrepreneu
rial
Ecosystem

1. Repositioning Kerala to imply a ‘business-friendly’ and ‘investment-attractive’ destination - A

review of policies and infrastructure in Kerala suggests that the state has moved ahead in doing
the right things for aiding businesses
2. As Kerala has long coastal line, State can focus on building a Port-led manufacturing cluster with
internal transport linkages
3. Focusing on a major policy push to build Brand Kerala - Focused promotional activities should be
on-boarded for thrust sectors
4. Development of an entrepreneurial ecosystem in the state to promote local enterprises in the
industrial and in the technology space
5. Building expert skill development base focusing on multiple sector specific skill zones supported
by world-class infrastructure

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 Study on Investment Potential in Kerala

Kerala’s 5-point Sector Development Strategy – Focus areas

1. Institutional Framework set-up for Investments
• The state should constitute an Implementation Working Group for each sector and for large
projects comprising all stakeholders
• A time bound action plan has to be then finalized which constitutes the changes in the policy,
along with the necessary interventions at each step
• Investment facilitation project teams will have to be constituted for investment requests for
major and mega projects
• Web-based MIS should be established to capture information, data and research relevant to
investment promotion and facilitation

2. Creation of Enabling Infrastructure

• Continuous improvements in ‘Ease of Doing Business’ procedures to be done through
continuous industry interactions, incorporating feedback and simplifying all clearances such
that Kerala is ranked among the top 10 states.
• In order to attract large-scale enterprises, the state will have to increase the size of the land
bank substantially and earmark some pockets for large projects with auto-approvals.
• A project monitoring committee can be constituted for tracking the progress of infrastructural
developments recommended in the report and those envisaged by the government, especially
common utilities required for overall development.
• Continual digital communication with citizens, industry and all stakeholders on a frequent
basis to highlight the progress of work done by the government.

3. Investor Facilitation
• Dedicated sector desks should be set up for Investor Facilitation, especially in target markets
• An online tracking mechanism should be established for investor prospecting to help take the
association to closure
• Focused outreach campaign for top 3 markets for each focus sector to be created
• Sector wise communication plan to be developed with the help of state portal and the state
department responsible for the sector

4. Focused Project Development

• Detailed pre-feasibility profiles for each project have to be prepared before entering the project
development phase
• Focus on getting one large investment (INR 1000 crore) in each Sector as ‘Anchor Industry’
• 100% digitalization of single window facility with maximum turnaround time of 7 working days.
• Fast track land and environment clearances for all investments above INR 100 crore to be
monitored to ensure quick turnaround. Facility to be available in the single window clearance
facility

5. Kerala – Brand Building

Business development activities

• Focused promotional activities should be on-boarded for a every year to customize the existing
promotion strategy of the government
• Advertising in industry-specific publications with key messages of the focus sectors
• Development of marketing collaterals through Fact sheets that elucidate strengths of Kerala

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Sector marketing activities

• Adopt a pro-business stance and promote Kerala as the “destination for investment”
• More than general investor interest, a more focused approach towards large-ticket investors
in a sector is needed
• KSIDC should tie up with trade missions, industry bodies for securing strategic partnerships,
technology exchange

6. Skill Development
• State should invest time and effort in skill enhancement activities which will boost the focus
sectors development
• In-depth skill requirement assessment to be done to know the market requirement
• Tie-ups with industry players for skill building activities and build expert skill zones with high-
end world class infrastructure facilities
• Invest in R&D facilities to upgrade indigenous manufacturing techniques especially in
traditional industries

MSME Cluster Development

A key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro
and Small Enterprises and their collectives in the country. The essential characteristics of enterprises
in a cluster are as follows:

Similarity or complementarity in the methods of production, quality control

and testing, energy consumption, pollution control, etc.

Channels for communication among the members of the cluster

Similar level of technology and marketing strategies/practices

Common challenges and opportunities.

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Objectives

• To ensure sustainable development of MSMEs by addressing common issues related to

technology, skills, market access, access to credit/capital etc.
• To build capacity of MSMEs for common supportive action through the formation of self-help
groups, consortiums, joint ventures, collaborations etc.
• To create/upgrade infrastructure facilities in the new/existing industrial areas/clusters of
MSMEs.
• To create common facility centres for MSMEs.
• To deliver the required policy support to the MSME sector through the Government of Kerala’s
Industrial Policy.

Key Activities

Diagnostic studies – To analyse business processes within the clusters and propose remedial
measures along with a validated action plan.

Soft interventions – To provide technical assistance, capacity building, market development

and other related activities for clusters.

Detailed Project Report (DPR) preparation – To prepare technically feasible and financially
viable project reports for infrastructure development in new industrial clusters/areas or
upgrading the current infrastructure in existing industrial clusters/areas.

Hard interventions – For creation of tangible infrastructure assets as per the requirements of
the cluster. E.g.: testing facilities, design centres, training centres, effluent treatment plants,
warehouses, sales depots etc.

Infrastructure development – Development of land, provision of utilities (power, water,

drainage, sewerage, gas etc.), common facilities etc.

Program Delivery Model

• The MSME development program shall be delivered from MSME Business Facilitation Centres
(MBFCs) that will be established in all District Industries Centre in Kerala in a hub and spoke
model.
• Kerala State Industrial Development Corporation shall serve as the hub of the MBFCs for the
development of entrepreneurship and innovation, investment promotion agenda, knowledge
management etc. while providing program management and guidance support to the project.
• Officers of the respective District Industries Centres shall serve as the spokes of the MBFC to
deliver the services of the program and ensure that its benefits are reaching the targeted
groups.
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Program Monitoring Agency

• It is recommended that the Government of Kerala creates a Program Monitoring Agency (PMA)
that will oversee the design, implementation, and review and impact analysis of the MSME
development program.
• The PMA shall work in close coordination with KSIDC, related Departments and Agencies of
Kerala and the proposed Investment Facilitation Cell envisaged in M/s KPMG’s report on
improving the Ease of Doing Business in Kerala.

Role of PMA

1.Provide assistance related to investment, technical knowledge, technology

partnership, export, trade partnership, knowledge assistance, project preparation, etc.

2.Develop quarterly and monthly progress reports based on the parameters identified
for performance measurement..

3.Plan roadshows in selected District Industries Centres or zones to create awareness

of the program and highlight the support provided by the Government to MSMEs in
Kerala.

4.Help build relationships with MSME associations to facilitate investments in the state.

5.Help build relationships with angel investors, venture capitalists, impact investors
and NRIs/NRKs who may provide early stage seed capital for supporting new MSMEs.

6.Provide assistance in implementing Central Government schemes in the MSME

sector.

7.Organise meets with key investors, donors etc. to help bridge the financing gap for
new entrepreneurs.

8.Promote business and technical incubation, capacity building, investor facilitation

and handholding support.

9.Analyse skill gaps and provide training and capacity building for officers of District
Industries Centres.

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G2B and B2B portal for MSMEs

G2B Portal

• Provision for procurement of goods and services exclusively from MSME sector
• Boost to growth of MSME sector
• Efficient procurement process through prior registration of vendors and rates.
• Transparency
• Online payment

B2B Portal

• Online marketplace for MSMEs

• Visibility and reach for products and services.
• Reduced inventory and distribution costs.

Project Profiles
Potential project profiles were identified based on findings from sectoral assessment, district
profiling, demographic and infrastructure assessment. The key projects identified under
thrust sectors are listed below.

Mega projects 119

S Project Name Estimated Project Proposed Location

No. Cost

1 Electronic Hardware Park INR 1200 Cr Amballur, Cochin

2 Multi-modal Logistics Park INR 1500 Cr Cochin

(MMLP)

3 Free Trade Warehousing Zone INR 250 Cr Vizhinjam

4 Port based Cruise Tourism INR 100 Cr Vizhinjam

5 Light Metro- Trivandrum INR 4219 Cr Trivandrum

6 Light Metro - Kozhikode INR 2509 Cr Kozhikode

7 Marina at Allepey INR 100 Cr Allepey

8 Medium Density Fibreboard INR 200 Cr Ernakulam-Perumbavoor area
(MDF) Plant

119
Classification Criteria
1. Small (Up to INR 5 Cr)
2. Medium (INR 5-10 Cr)
3. Large (INR 10-100 Cr)
4. Mega (> INR 100 Cr)
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S Project Name Estimated Project Proposed Location

No. Cost

8 Abattoir and modern meat INR 250 Cr Wayanad or Idukki

processing unit

10 Air Taxi INR 1100 Cr Trivandrum, Alappuzha,

Kottayam, Idukki, Ernakulam,
Wayanad and Kasaragod

11 International Exhibition & INR 500 Cr Kakkanad, Cochin

Conference Center
12 Cryogenic Warehouse – Cochin INR 300 Cr Puthuvypeen, Cochin Port
Port Trust

13 Propylene oxide – Cochin INR 5000 Cr Kochi (BPCL-Kochi Refinery)

Refinery
14 PVC manufacturing – Cochin INR 3000 Cr Kochi (BPCL-Kochi Refinery)
Refinery

15 Super Absorbent Polymer – INR 900 Cr Kochi (BPCL-Kochi Refinery)

Cochin Refinery

16 Elevated Highway INR 15000 Cr Multiple stretches between

Trivandrum to Kannur
17 Inland Waterways and Cruise INR 1000 Cr Multiple (Rivers and
development backwaters of Kannur and
Kasaragod district)
18 Aerotropolis INR 850-1000 Cr Kannur

19 Aquaculture and Seafood Exports INR 10 Cr Vizhinjam Port

(excluding land
lease costs)

20 Integrated Manufacturing Cluster INR 10000 Cr Cochin to Palakkad

(IMC)

21 Petrochemical Park INR 1864 Cr Ambalamugal, Kochi

22 Maritime Cluster INR 3500 Cr Cochin Port (Wellington Island)

23 Small Hydro Projects INR 850 Cr Idukki, Trivandrum, Kannur,
(Multiple Projects) Kollam, Palakkad

Electronic Park
Sector/Industry – Infrastructure
Project Type – Mega
Estimated Project Cost – INR 1200 Crores

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Proposed Location – Amballur

Project Description
• An Electronics Park is proposed to be set up at an extent of 100 acres of land in Amballur where
Kerala State Industrial Development Corporation Ltd (KSIDC) is the nodal agency.
• The project aims to promote manufacturing and assembly of electronic hardware and would
also include a research and development unit.
• The proposed world class park is estimated to draw investment to the tune of INR 650 crore
through manufacturing and assembling of electronic equipment ranging from television,
refrigerator, washing machine, computer to mobile handsets and by attracting companies in
the semiconductor and electronic components sector.
• A rainwater harvesting system will also come up in 15 acres at the proposed electronics park
at Amballur. It is expected that land acquisition and land development works shall be
completed within two years and the Park shall be operational by 2020.
• In the first phase, 50 incubation units is planned to be set up. KSIDC envisages implementing
the project by PPP mode.

Market Scenario 120

The electronics market in India is one of the largest in the world and it is growing and anticipated to
reach USD 400 billion by 2022. The market is projected to grow at a CAGR of 24.4 per cent during 2012-
2020. In the current scenario, the Indian manufacturing industry contributes only about 2.2 per cent of
the world’s total manufacturing output. This has resulted in India becoming a major importer of
electronic materials, components and finished equipment. One of the initiatives expected to bring
about a course correction in the area of electronics manufacturing will be the ambitious Electronics
Park Project at Amballur in Kerala – one that will help the country keep pace with the growing local
demand for electronic goods.
The electronics industry in Kerala was valued at INR 670 Crore (USD 135 Mn) in 2012. Green Field
Electronics Manufacturing clusters are being setup in Ernakulum. Companies are increasingly
spending on R&D and stepping up innovation. There is an increasing penetration of high-end
electronics products such as High Definition TVs (HDTVs), LCDs, LEDs, and tablet.

120
http://www.keralacm.gov.in/progress-report/, http://www.thehindu.com/news/cities/Cochin/govt-to-scale-up-amballur-electronic-
park/article7510670.ece, Pre-feasibility report March - 2016 Electronic hardware manufacturing cluster at Tirupati,
http://environmentclearance.nic.in/writereaddata/FormB/TOR/PFR/18_Mar_2016_145417407LBF95SDWpfr.pdf,
http://timesofindia.indiatimes.com/city/Cochin/Rainwater-harvesting-for-Amballur-electronic-park/articleshow/51174671.cms,
http://www.constructionopportunities.in/IssueDetailPage?IssueMenuMasterId=3790&ParentMenuId=3790
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Project Parameters 121

Parameter Description

Capacity Under the first phase of the project an Electronic hardware manufacturing
/assembling /programming/ testing and software development unit will be set
up. Other facilities planned in future would include tool room, PCB/Chip
Design/Embedded Technology Training Centre, Incubation and R&D center,
Electronic Testing & Development Centre with training facility, Standard design
factories etc.

Land KSIDC has identified an extent of 100 acres of land in Amballlur, Mulanthuruthy.
30% of the area is allocated for infrastructure, common amenities and utilities
like roads, electrification, water supply scheme etc. and for construction of built
up space for industries. The balance area of 70 acres can be leased to
entrepreneurs and private developers.

Raw Material Power, Boundary, land development, internal roads, storm water drains, street
& Utilities lighting, Water and sewage treatment plant, Waste disposal system,
Electrification infrastructure, Warehousing, Training Facility, Conference facility,
IT & Telecom infrastructure, Tool room, CAD/CAM centre, Plastic molding,
Packaging, Testing facilities ,semiconductor and electronic components

Employment Considering Kerala's standard for working density at green and white industry /
Potential service sector, estimated employment shall reach around 25-30 K , including
indirect employment

Cost of the Expected project outlay for the project is approximately INR 1200 Crores (~USD
project (INR) 185 Mn)
Broad cost break-up estimation is provided below:
• For 100 acre land a cost around INR 500 Cr is estimated for the land
acquisition and infrastructure development.
• For interior, landscape and building services including HVAC an
investment of ~ INR 700 Cr is estimated (which is likely to be borne by
tenants/private investors)

Means of The proposed Debt - Equity ratio is 60:40. Promoter’s contribution of INR 480 Cr
Finance and Term Loan/Borrowings/Investments in tune of INR 720 Cr.
Investors can avail various policy initiatives and support provided by the
Government include:
• 100 per cent FDI allowed in the electronics hardware manufacturing
sector

121
http://www.india-opportunities.es/archivos/publicaciones/Electronics-january-2016.pdf , https://www.ibef.org/download/Electronics-June-
2017.pdf, http://www.thehindu.com/news/cities/Cochin/amballur-electronics-park-to-generate-5000-jobs/article8291519.ece,
http://meity.gov.in/writereaddata/files/tender_upload/DPR%20Format%282%29.pdf
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Parameter Description

• Modified Special Incentive Package Scheme(M-SIPS) provides capex

subsidy of 20-25 per cent for units engaged in electronics manufacturing
• As per Make in India Initiative, Electronic Development Fund Policy has
been approved which would rationalize an inverted duty structure
• Electronic Hardware Technology Park (EHTP) Schemes
• Administrative sanction of INR 125 crore granted by the State
government

Expected The government hopes to generate business of INR 1,000 crore from the
Sales Turnover electronic industries that would come up there. The Indian electronics and
hardware industry is expected to reach USD 110-130 billion by 2018. By capturing
0.5% share the proposed park would generate revenue in tune of INR 3000 Cr by
2020.

Competitive Landscape
In India, the domestic manufacturing capacity is less than 45 per cent of the consumption, exposing
the huge gap in the demand and supply situation. The free trade agreements signed with various
countries has made it mandatory to ensure rapid growth of domestic manufacture of these goods, a
major chunk of which are imported from China. In March 2017, Xiaomi announced its 2nd
manufacturing plant along with Taiwan based company Foxconn, in Andhra Pradesh. This will help
create employment in 100 nearby villages for at least 5,000 people. High production is majorly
contributed by accelerating demand for advanced TVs, mobile phones, computers & defence related
electronic equipment's during FY07 to FY15. The National Manufacturing Policy of GoI and other
export promotion policies specializes firms in production activities and- results for global competition.
To be competitive at international level large size electronic hardware technology parks with high class
infrastructure is a need for the state to flourish. In Kerala Ernakulam, Kannur and Thiruvananthapuram
are key districts with electronics manufacturing clusters.
Key Players: Few key players in Kerala are KELTRON, OEN India Limited, CII Guardian International,
KINFRA Electronic Manufacturing Cluster (EMC), TELK, Maker Village Kochi, CDAC, BPL, SFO
Technologies etc.

Conclusion
The ambitious electronic park project being planned to be developed at Amballur in Kerala is soon
expected to uplift the region into an attractive manufacturing destination. The Amballur initiative
focuses on encashing on the booming market in India for electronic products which are being utilized
in IT, industrial, manufacturing and infrastructure activities. The project which involves development
of the first-of-its-kind facility in the state is being envisaged as an electronic hub to promote
manufacturing and assembly of hardware, as well as to support the development of qualitative
infrastructure. The electronic hub proposed at Cochin is expected to promote electronic hardware
manufacturing and assembling units, R&D centres and supporting infrastructure. The project is fully
in line with the National Manufacturing Policy of the Government of India for promoting more
manufacturing industries in the country for economic growth and employment generation and hopes
to generate business of INR 1,000 crore from the electronic industries that would come up there. The

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proposed world class park is expected to draw investments in the basic infrastructure development
and through manufacturers and assemblers of electronic equipment, computer to mobile handsets
and by attracting companies in the semiconductor and electronic components sector.

Multi-modal Logistics Park

Sector/Industry – Infrastructure
Project Type – Mega
Estimated Project Cost – INR 1500 Cr
Proposed Location – Cochin

Project Description 122

• A Multi-modal logistic park (MMLP) including Free trade warehousing zone is proposed to be
set up at Cochin in the vicinity of Cochin Port. The Multi-modal logistics park is an enhanced
form of a logistics park with various value-added services rendered through rail, road, air and
sea modes of transport. Cochin Port Trust intends to establish this project in conjunction with
the existing port facilities and services under the Logistics Efficiency Enhancement Programme
(LEEP) of the Ministry of Road Transport and Highways (MORTH). Under LEEP, there are also
plans to construct Inter-Modal Stations which integrate various transportation modes like rail,
road, mass rapid transit system, bus rapid transit (BRT), auto-rickshaw, taxi and private
vehicles. Cochin port is the most potential location for multi-modal transportation corridor due
to its proximity to National Highway, Rail, International Airport and national/inland waterway
connectivity.
• The objective of this project is to provide efficient integrated logistics services with dedicated
areas in the MMLP which would enable freight aggregation, distribution and multi-modal
freight movement by providing services such as Warehouse, Cold Storage, and other value-
added services. The MMLP is poised to address the issues of unfavourable modal mix,
inefficient fleet mix and under-developed material handing infrastructure. The proposed MMLP
is composed of following sub-projects:
1. General Warehouse
2. Cold Storage
3. Container Freight Station (CFS)
• In addition to these, a Free Trade Warehousing Zones (FTWZ) is also proposed to be set up in
juncture with the MMLP. FTWZ is a special category of Special Economic Zones that are
governed by the provisions of SEZ Act and Rules. They are Integrated Zones used as
international trading hubs and designated as deemed foreign territory. The FTWZs that form
part of the Logistics Parks would improve the logistics infrastructure of the state and facilitate
and promote cross-border and international trade. The primary intent of FTWZ is to attract
industries catering to Storage, Handling, Transportation, Documentation, Tagging, Packing,

122
http://pib.nic.in/newsite/PrintRelease.aspx?relid=153623, http://pib.nic.in/newsite/PrintRelease.aspx?relid=159271;
http://www.thehindu.com/todays-paper/tp-national/tp-kerala/Multimodal-logistics-park-in-Cochin/article14554608.ece
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Labelling, Palletisation, Quality Assurance, Repair & maintenance, Refurbishment, etc., of

goods/ cargo will be ideal for locating in the Parks.
• Advantages of the proposed Multimodal Logistics Parks & FTWZ include reduction in transport
costs by 10 per cent, reduction in CO2 emissions by 12 per cent, and reduction in freight
vehicles by 20 per cent.

Market Scenario 123

Cochin Port Trust has achieved the highest growth in operating surplus and third highest growth in
cargo traffic among the major ports in 2016-17. The Cochin Port Trust has registered an operating
profit of ₹127.72 crore during 2016-17 recording a growth of 80 per cent YoY.

FTWZ will have the benefits of a free zone like duty deferment which meant duties on the imported
goods stocked there need to be paid only when they are transported out of the zone, after resale. This
facility will be of immense advantage for industries based on goods requiring longer storage time.
FTWZ can cater to various industries such as seafood, tea and coffee, cashew, spices, electrical and
electronics, food and beverages, high value products such as gems and jewellery, ship building and
repairs, construction related products as well as furniture

The Cochin Port has been handling around 16 million metric tonnes (MMT) per year of bulk cargo
during 2014-2016 period. Again, Cochin Port has been handling approximately 4 lakhs containers every
year in TEU terms. Container traffic saw a CAGR of 6 per cent during 2012-16 period. Cochin Port is
leveraging its strategic location at the cross roads of trade between East and West to establish the first
ICTT of India.

The terminal will meet the demand of a convenient pivotal point for consolidating and distributing
regional cargo. ICTT has registered a whopping growth of 17.5 per cent in total traffic handled in 2016,
hence the container capacity is slated to increase in a phased manner up to 30 lakhs TEUs/year.
Connectivity for all mainline carriers on the East-West shipping routes and regular scheduled train
services to Inland Container Depots (ICDs) located in Irugur (Coimbatore) and Whitefield (Bengaluru)
are catalysts for the impressive growth.

Cochin Port is also attracting various new businesses through coastal shipping mode with the arrival
of the first Ro-Ro car ship in 2016. This ship connects the automobile production hubs in Tamil Nadu
(east coast) and Gujarat and Haryana (west coast). Huge car carrier trucks plying on the congested
roads dominate the present mode of movement of automobiles for internal consumption in the
country. Therefore, the potential coastal transport market segment could be strong; 50 ship calls a year
with 1,000 cars per call will be required if 30 per cent of the Kerala market shifts to the coastal transport
mode.

The Ministry of Shipping has identified fourteen Coastal Economic Zones (CEZ) along the coastline of
the country under National Perspective Plan (NPP) of Sagarmala Programme. The CEZ are spatial

123
http://pib.nic.in/newsite/PrintRelease.aspx?relid=159271, http://www.thehindubusinessline.com/news/awards-for-cochin-
port/article9709225.ece , http://www.containersindia.in/pdf/INDIAN%20CONTAINER%20MARKET%20REPORT-2016.pdf,
http://www.thehindubusinessline.com/economy/logistics/cochin-port-attracts-new-business-through-coastal-shipping/article9154382.ece ,
http://pib.nic.in/newsite/PrintRelease.aspx?relid=155130 , http://timesofindia.indiatimes.com/city/Cochin/Cochin-Port-invites-expression-of-
interest-for-warehousing-zone/articleshow/10429871.cms

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economic regions spread over multiple coastal districts with strong port linkage. Within each CEZ,
there could be multiple industrial clusters that could contain industrial units with requisite support
infrastructure. Sagarmala project aims to invest INR 70,000 crore in facilitating economic growth by
enhancing coastal shipping of goods.
Project Parameters 124

Parameter Description

Warehouse Capacity: 7,00,000 Cu. Ft (First Phase)

•
Capacity
Cold Storage Capacity: 30000 Sq. Ft with capacity of ~80000 tonnes per
•
annum (First Phase)
• CFS Capacity: Installed capacity to handle 100 Containers per day (36000/
year)
• FTWZ: 100000 Sq. m
The cargo and container handling capacity is based on space availability,
capacity of the handling equipment's and projected Container traffic at Cochin
Total land Area 100 Acres (available with Cochin Port Trust in vicinity of
Land
International Container Trans-shipment Terminal, Vallarpadam)
• 25 per cent of land area will be utilized for ware housing of general goods
• 20 per cent will be utilized for cold storage
• 30 per cent will be utilized for CFS
• 25 per cent will be utilized for FTWZ
The proposed land for the project is in close proximity to railway station, airport,
National Highway and city premises.

The main items required for the ware house and cold storage are Fork Lifts etc.
Raw Material
For the CFS facility, two numbers of Reach Stackers having a capacity to lift 45
& Utilities
tons and stack 1+4 Containers are envisage. Using this, laden Containers can be
handled easily. Three numbers of forklifts are proposed for handling empty
Container.
Power requirement is estimated at 1000 KVA

Direct - 60
Employment
Loading/Unloading & Security - 125
Potential

The total cost estimated for setting up the Multimodal Logistics Park & FTWZ in
Cost of the
Cochin will be approximately INR 1500 Crore (~USD 230 Mn). The costs for
project (INR)
developing the FTWZ in 25 acres land will come to nearly INR 250 Cr. The
breakup of costs under major heads are as follows: The estimated cost for first
phase of the project ~ INR 80 Cr.
• Land 190
• Site Development 75
• Infrastructure 750
• Utilities 35
• Misc. Fixed Assets 130

124
http://www.cochinport.gov.in/index.php?opt=projects&sub=20&id=3&tab=1
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Parameter Description

• Preliminary & Preoperative Expenses 100

• Others (Expansion, Contingency, Deposits etc.) 180
• Total 1500 Cr

Means of Promoters contribution – INR 600 Cr and Term Loan/Private investment in tune
Finance of INR 900 Cr
SEZ units (FTWZ) can have external commercial borrowing up to USD 500
million in a year without any maturity restriction through recognized banking
channels.

Expected The expected sales turnover (Revenue) for the project is in tune of ~20 Cr after
Sales Turnover completion of first phase of the project. Industries catering to Storage, Handling,
Transportation, Documentation, Tagging, Packing, Labelling, Palletisation,
Quality Assurance, Repair & maintenance, Refurbishment, etc., of goods/ cargo
will be ideal for locating in the Park.

Competitive Landscape 125

Vizag multi-modal logistics park was inaugurated in February 2017 due to which movement of
container cargo and other cargo from the port city will get a tremendous boost with the
commencement of commercial operations at the multi-modal logistics park built at Sheelanagar
beside the National Highway by the Container Corporation of India (Concor)
Government plans to develop 35 Multimodal Logistics Parks (MMLPs) in the country. Cochin is one of
the identified locations and with the upcoming MMLP in Cochin, which faces competition from
Colombo, Singapore etc. with world-class infrastructure facilities can lead to cost advantages and
attract cargo routed to neighbouring ports
Key Players: There are several private logistics service providers, cold storage, and warehouse service
providers in the vicinity of Cochin port trust. The proposed MMLP shall act as an incentive for all
existing players to be part of the larger ecosystem.

Conclusion
The project shall be supported by the government for land acquisition. Different operation models like
profit sharing, fixed monthly lease rent system etc. with land owners can be worked out. Central
Government assistance through the Logistic Efficiency Enhancement Programme (LEEP) of Ministry
of Road Transport & Highways (MoRTH), will also be explored. The LEEP aims at enhancing freight
transportation across the country through infrastructure, procedural and IT interventions. The
government is also working to formulate a uniform policy for the development of MMLPs. 100 per cent
FDI is permitted to develop FTWZ. Several countries are expressing their interest in the upcoming
FTWZ in order to foster their trade relations with India as they can import goods duty-free and

125
http://www.cochinport.gov.in/index.php?opt=projects&sub=20&id=3&tab=1, http://www.dailypioneer.com/business-and-
finance/government-to-construct-35-multimodal-logistics-parks-gadkari.html
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warehouse it in the FTWZ, they can re-export these goods without paying duty. Cochin is one of the
few ports that surpassed the Shipping Ministry's traffic target by handling 25.01 million tonnes in the
just concluded fiscal year and is an ideal location for the MLP and FTWZ.

Free Trade Warehousing Zone (FTWZ)

Sector/Industry – Infrastructure
Project Type – Large
Estimated Project Cost – INR 250 Cr
Proposed Location – Vizhinjam Port

Project Description
• The proposed Free Trade Warehousing Zone in Vizhinjam will be developed in lines of a special
economic zone, wherein the area under development would be classified as a deemed foreign
territory and the unit’s operating within the zone would be given special status and provided
various fiscal and non-fiscal benefits. FTWZ will be governed by the SEZ Act 2005 and SEZ
Rules. The activities permitted within the zone would be limited to packing, de-stuffing,
splitting, and other activities related to storage and logistics.
• Proposed FTWZ is a 100000 sq. m facility, which will include customized warehouses for food
products, electronics, chemicals, textiles etc. along with cold storage facility, controlled
humidity warehouses, enhanced transportation facilities and a well-equipped IT-integrated
cargo management system

Market Scenario 126

• Cost of importing/exporting from India is relatively higher than in other developed countries,
primarily due to inefficiencies in the logistics chain, lack of deep draft port facilities and
capacity constrained hinterland cargo evacuation system. Vizhinjam is strategically located
along south of the Kerala coast and is only 10 nautical miles away from the East-West world
shipping corridor. The port is being developed to provide world class infrastructure for efficient
services and to cater for future development potential.
• The average growth in import-export traffic in the region has been about 13% per annum in
the last 11 years.
• Indian exporters need not rely on foreign ports for trans-shipment of cargo as Vizhinjam port
offers savings in annual expenditure of at least Rs.1000 Crore due to which huge opportunity
exists w.r.t export and import of goods. The port location is ideal to tap the potential of
development of a deepwater international container port in India that can handle the largest
container vessels serving the East-West shipping route which can use facilities of the proposed
FTWZ
• In line with the phase-I development of Vizhinjam port, the container terminal capacity for
handling the projected traffic is 10,00,000 TEU at 70% berth utilization. However, it is envisaged
that the port will have state-of-art equipment to handle the projected container traffic and

126
http://www.vizhinjamport.in/download/Feasibility-Report.pdf
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according to global productivity standards, such ports can achieve a maximum berth utilization
rate of up to 80%. Therefore in Phase-1 development of Vizhinjam Port is expected to cater to
a maximum container traffic up to 12,50,000 TEU by 2030

Project Parameters 127

Parameter Description

100000 sq. m facility with provision for packaging, re-packaging, labelling, re-
Capacity
labelling, strapping, refurbishment, crating, carbonisation, fumigation, choking,
lashing, tagging, shrink / stretch / bubble wrapping, palletisation, bagging, re-
bagging, quality assurance, kitting, de-kitting, sorting assorting, making
combination pack, consolidation, agglomeration, washing, cleaning, processing,
repairs & maintenance, CKD/SKD assembly, bottling, blending, cutting,
polishing, painting, coating, filming, re-sizing, splitting, threading etc.

25 acres land is to be earmarked in proximity to Vizhinjam port.

Land

Basic Infrastructure, Counterbalance forklifts, Stackers, Cranes & Grabs, Push

Raw Material
carts, Shelves, storage bins, electronic scales, cold storage freezers and cooler
& Utilities
facilities, break bulk, containerized and dry cargo storage facility.

The zone is expected to provide 200-300 direct and indirect jobs

Employment
Potential

The total project cost is estimated at 250 Crores (USD 40 Mn) which will include
Cost of the
storage facility and value-added services
project (INR)

Units in FTWZ SEZ type can explore external commercial borrowing options up
Means of
to USD 500 million in a year without any maturity restriction through recognized
Finance
banking channels.

Competitive Landscape
• Vizhinjam port’s immediate competition would be with Cochin (Vallarpadam) and VOC
(Tuticorin) for its gateway containerized cargo; however, the port would primarily be
competing with Colombo in Sri Lanka for container transhipment traffic.
Key Players
Cochin Vallarpadam ICTT, Tuticorin port, Colombo port

127
http://genexlogistics.in/free-trade-warehousing-zone-genesis-concept-objectives-and-envisaged-benefits/,
http://www.epces.in/uploads/files/file/FAQ.pdf
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Conclusion 128
• Free Trade Warehousing Zones are envisaged to be essential logistics infrastructure to
facilitate export-import trade and to root out inefficiencies associated with movement and
valued addition of cargo. FTWZ projects are usually developed through a PPP model. Under
PPP mode, it can be developed either by ‘Build, Own, Operate and Maintain (BOOM) model or
Joint Venture. It is proposed that the government shall support developer for land acquisition
and implementation of the project.
• FTWZs are entitled to many benefits such as Income tax exemption on all profits generated
through re-exports activity through the FTWZ, Hassle-free re-export process by routing cargo
through FTWZ integrated with CFS services, 100% deduction of profits derived from such
business for 10 consecutive assessment years out of 15 years beginning from the year the SEZ
was notified by the central government. The Government of India’s Foreign Trade Policy (2015-
2020) aims to increase the value of trade to USD 900 billion by 2020, by aligning with
Government’s various initiatives to promote exports growth.
• Due to growth across diversified industries with marked entry of foreign players leading to
investment in logistic/warehouse such as pharma, automobile, retail, agriculture, FMCG etc.
FTWZ in Vizhinjam would attract many leading players to utilize its facilities

Port based Cruise Tourism

Sector/Industry – Tourism
Project Type – Large
Estimated Project Cost – INR 100 Crores
Proposed Location – Vizhinjam Port

Project Description
In the existing master plan of upcoming Vizhinjam port developed by Adani Ports and SEZ, there is a
provision for a cruise terminal which can drive demand for hospitality services in the area thereby
contributing to the overall economic growth of the state by boosting tourism. The proposed new cruise
terminal which is planned to be developed in the next phase of development is for cruises with 3000
passenger capacity equipped with facilities for international immigration standard operating
procedures. This project puts forth opportunities for offering various cruise operators, cruise and
passenger services at Vizhinjam Port, as a Port of Call.

Market Scenario 129

• Global cruise market witnessed a CAGR of 7% in growth of passengers during the period 1990-
2015 with more than 22.2 million passengers in 2015.Growth in cruise tourism is expected to
continue, reaching more than 25.3 million passengers in 2019.The passenger capacity of the

128
http://www.vizhinjamport.in/download/Feasibility-Report.pdf, Vibrant Gujarat 2017 report on Ports, Port Services and Logistics
129
http://timesofindia.indiatimes.com/city/Cochin/City-to-get-new-cruise-terminal/articleshow/54772099.cms ,
http://cochinport.gov.in/index.php?opt=cruisedestination, http://www.livemint.com/Politics/gFMW1phDvWa04KMhTdriKI/India-allows-foreign-
cruise-ships-to-operate-along-the-coast.html, http://cochinport.gov.in/index.php?opt=cruisedestination ,
http://www.cruisemapper.com/ports/cochin-port-228
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global cruise industry is more than 466,000 beds according to the Cruise Lines International
Association
• India is ranked as the 9th most popular tourist destinations in the world and is a preferred
cruise destination. Kerala’s revenue from tourism (direct & indirect) during 2015 was INR
26,689 Crore which saw increase of 7.25 % over 2014. In Kerala, Cochin port has a dedicated
cruise terminal which gets call from major cruise lines like Cunard Lines, Royal Caribbean
Lines, Aida Cruises, Costa Cruises etc. every year
• Government of India has relaxed cabotage restrictions for cruise vessels so that it is possible
to transport Indians from one Indian Port to another on foreign cruise vessels transiting
through India. This was in view of boosting cruise tourism in the country. As part of its cruise
tourism development initiatives, Government of India has already identified 6 ports to be
developed as ‘World class cruise terminals’ and to be promoted as ‘Integrated Indian Cruise
Circuit’ – Mumbai, Goa, Mangalore, Cochin, Tuticorin and Chennai
• Vizhinjam Port holds great potential to fit into the Indian Cruise Circuit as a Port of Call due to
proximity to renowned beaches such as Kovalam Beach (less than 5 Km away) & Varkala Beach
(55 Km away) and other popular tourist attractions like Ayurveda rejuvenation therapies, Sea
foods, Backwaters, Hill stations (Ponmudi) etc.
• An average international cruise passenger roughly spends USD 500 during a ship visit to
Cochin. With the onset of cruise terminal infrastructure which is technologically advanced and
in line with international standards, will lead into increased tourist inflow to the state.

Project Parameters 130

Parameter Description

Capacity Terminal and ancillary facilities to handle 3,000 passenger capacity cruise ships
cum multipurpose cargo vessels. Various opportunities in line with the ancillary
services required for passengers and cruise are:
Tour Operator and Tourist Information center along with a help desk manned
round the clock to cater to the passenger needs, inquiries and distribute city
maps, brochures on tourist attractions, heritage sites etc.
• Shops selling souvenir, gifts, jewellery, ethnic wear etc.
• Restaurant
• Hotel
• Foreign exchange counters
• Communication Center
• Entry/Exit Clearance counters
• Parking facilities

Land Requisite land is already earmarked in the existing master plan for development
of Vizhinjam port by Adani ports & SEZ. Land lease possibilities can be explored
with Adani Ports & SEZ.

https://incredibleindia.org/lang/images/docs/trade-pdf/surveys-and-studies/study-reports/Cruise%20Tourism%20-
130

%20Potential%20&%20Strategy%20Study.pdf
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Employment Such a tourism facility can attract nearly 250 direct and indirect jobs.
Potential

The total cost for the project is estimated at ~ INR 100 Cr (USD 15 Mn)
Cost of the
project (INR)

Debt-Equity ratio of 70:30 is proposed for the project.

Means of
Finance

Competitive Landscape 131

• Cochin Port has a dedicated cruise terminal which has a modern world class fully air-
conditioned Cruise passenger facilitation centre “SAMUDRIKA”, where all statutory clearances
like Customs and Immigration for cruise passengers are given under single roof.
• For the first time in India, Indians can look forward to embarking on a home port cruiseliner
from Mumbai and going to enchanting destinations within India such as Goa and Kerala
enroute to popular foreign destinations like Maldives and Colombo.
Key Players
Cochin Port, Colombo Port

Conclusion
Cruise tourism is as a major business prospect for Vizhinjam. A well-equipped cruise terminal with
extensive docking facilities, well-developed transportation network will attract lot of well-equipped in-
terminal service providers and support facilities. Vizhinjam Port holds great potential to fit into the
Indian Cruise Circuit as a Port of Call, which opens up huge opportunity for cruise & passenger based
service providers.
Several lease and other operating models can be worked along with Adani Ports & SEZ in the next
phase of development of Vizhinjam port which has a provision for cruise terminal. Government of
India has launched several cruise tourism development initiatives to boost investor sentiment in the
sector.

Light Metro – Thiruvananthapuram

Sector/Industry – Urban Infrastructure
Project Type – Mega
Estimated Project Cost – INR 4219 Crores
Proposed Location – Thiruvananthapuram

131
http://timesofindia.indiatimes.com/city/delhi/Costa-Cruises-enters-India-to-begin-homeport-cruises-from Mumbai/articleshow/53280863.cms
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Project Description
• Thiruvananthapuram Metro Rail is a proposed light metro rail project in the city of
Thiruvananthapuram which spans across 19 stations with a route length of 21.82 km and the
estimated completion period is 5 years
• The proposed route would cover 19 stations namely Technocity, Pallipuram, Kaniyapuram,
Kazhakoottam Jn., Kazhakoottam, Karyavattom, Gurumandiram, Pangappara, Sreekaryam,
Pongumoodu, Ulloor, Kesavadasapuram, Pattom, Plamoodu, Palayam, Secretariat,
Thampanoor, Killipalam, Karamana
• Kerala Rapid Transit Corporation Limited (KRTL) is a Special Purpose Vehicle (SPV) of the
Government of Kerala, set up for the implementation and subsequent operation and
maintenance of the Metro Rail System in Thiruvananthapuram
Market Scenario 132
• Thiruvananthapuram is the second largest city in Kerala after Cochin. The city does not have
any public transport system other than Bus services. Due to high land cost and extreme
reluctance of the public to part with their lands, widening of roads to accommodate Mass
Transit System is almost unthinkable. Therefore, an elevated or underground guided public
transport system is unavoidable and the only solution to meet the traffic requirements of the
city
• The roads in the city are narrow with only 15 Km of 4 lane roads and are congested all the time.
The average city speed during peak hour is only about 20 Km/hr. All the city buses are also
over crowded especially during peak hours. It is estimated that 36,73,50 people would get the
benefits of the new transportation system by 2031
• With the projected person per hour per direction (PHPDT) requirement of 11296 in 2021 and
about 17000 in the year 2041 for Thiruvananthapuram, it is clear that ordinary bus systems or
a Bus Rapid Transit (BRT) system would not be able to meet the traffic demands of the city.

Project Parameters

Parameter Description

Capacity of 3 coach
Capacity
• 600 passengers with 6 persons/ sq. m
• 750 passengers with 8 persons/ sq. m

• Total requirement: 11.96 hectares

Land
• Government: 8.92 hectares and Private: 3.04 hectares
• 19.54 Acres of Government land at Pallippuram, Thiruvananthapuram
assigned to KRTL for construction of depot/ yard for the Light Metro Rail
project

132
Detailed Project Report for Thiruvananthapuram Light Metro Rail Project, October 2014, DMRC

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Project Inspection and workshop facilities, stabling lines in depot, test track, power
Facilities supply, water supply, sewerage and drainage works, ancillary workshops, watch
towers, parking facility
Total power for the corridor is 23.3 MVA

INR 4219 Crores (USD 650 Mn) over a period of 5 years

Cost of the
project (INR)

Proposed funding model (Debt-Equity Ratio = 60:40)

Means of
• Equity by GoI = 20%
Finance
• Equity by GoK = 20%
• Debt = 60% (International agencies, national funds, market borrowings
etc.)

• The revenue of Thiruvananthapuram Light Metro Rail mainly consists of

Expected
fare box collection and other incomes from property development,
Sales Turnover
advertisement, parking etc. Rental income of 83 crores is estimated for
2020-21
• Other revenues from property development and advertisement have
been estimated at 10% of the fare box revenues during operations
• Economic rate of return has been estimated as 17.99%.

Competitive Landscape
• Travel options within the city are limited to bus transport, and other road transport means
limiting public transport option to buses alone as the entire district is extensively covered by
the operation of buses
• Railways are used for commutation within Kazhakootam, Petta and Trivandrum Central
Stations. Also, there are limited trains which have stoppage at all 3 stations. Commuters
usually use railway lines for intra district travel and opt for autos, taxis and buses for travel
apart from private vehicles

Conclusion 133
• The main advantage of the Light Metro System is that it can negotiate very sharp curves and
steep gradients. The moving dimensions for the Light Metro Trains will not need extensive
widening of the Roads and hence large scale demolitions can be avoided.
• The project is the initial stage of development and land acquisition process is ongoing. The
state government has taken several steps to expedite the acquisition process in order to
complete the project within the projected timelines
• The huge prospects of the project to build urban infrastructure in the district can further usher
economic development of the state at large and makes it a lucrative investment option

133
http://krtl.in/trivandrum.html, DPR for Phase I Kozhikode Light Metro Rail Project, Government of Kerala, Prepared by DMRC
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• Delhi Metro Rail Corporation for the 1st and 2nd phase of the Delhi Metro was entitled to certain
Government of India encouragement through duty and tax concessions for the project. The
same is expected for the proposed Light Metro projects, at least in the initial stages
• Kerala Rapid Transit Corporation Limited (KRTL) proposes to engage private investors/players
for implementation of the project

Light Metro - Kozhikode

Sector/Industry – Urban Infrastructure
Project Type – Mega
Estimated Project Cost – INR 2509 Crores
Proposed Location – Kozhikode

Project Description
• Kozhikode Metro Rail is a proposed light metro rail project in the city of Kozhikode which spans
across 14 stations with a route length of 13.33 km and the estimated completion period is 5
years
• The proposed route (phase I) would cover 14 stations namely Medical College, Chevayur,
Thondayad, Kottuli, New Bus Stand, KSRTC, Mananchira, Palayam, Railway Station, Pushpa,
Kallayi, Panniyankara, Vattakkinar, Meenchanda.
• Kerala Rapid Transit Corporation Limited (KRTL) is a Special Purpose Vehicle (SPV) of the
Government of Kerala, set up for the implementation and subsequent operation and
maintenance of the Metro Rail System in Kozhikode

Market Scenario133
• Kozhikode is the third largest city in Kerala after Cochin and Thiruvananthapuram and is part
of the second largest city agglomeration in Kerala with a metro population of 20, 30,519 (as
per census 2011).
• The city does not have any public transport system other than Bus services. It is seen that a
number of important highways pass through the city. All other roads in the city are narrow
with only 15 km of 4 lane road and they are congested all the time. The average city speed is
only about 25 km/hr. All the city buses are also over crowded especially during peak hours.It
is estimated that 23, 97,32 people would get the benefits of the new transportation system by
2031.
• With the projected person per hour per direction (PHPDT) requirement of 6079 in 2021 and
about 12000 in the year 2041 for Kozhikode, it is clear that ordinary bus systems or a Bus Rapid
Transit (BRT) system would not be able to meet the traffic demands of the city.

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Project Parameters 134

Parameter Description

Capacity of 2 coach:
Capacity
• 400 passengers with 6 persons/ sq. m
• 500 passengers with 8 persons/ sq. m

• Total land requirement is 10.654 Hectares

Land
• Government Land: 8.554 Hectares; Railway Land: 0.518 Hectares; Private
Land: 1.582 Hectares;
• 8.28 Hectares of Government land has been assigned to KRTL for the
Light Metro Rail Project

Project • Inspection and workshop facilities, stabling lines in depot, test track,
Facilities power supply, water supply, sewerage and drainage works, ancillary
workshops, watch towers, parking facility

Cost of the • INR 2509 Crores (USD 387 Mn)

project (INR)

Proposed funding model (Debt-Equity Ratio = 60:40)

Means of
• Equity by GoI = 20%
Finance
• Equity by GoK = 20%
• Debt = 60% (International agencies, national funds, market borrowings
etc.)

Expected Sales The revenue of Kozhikode metro mainly constitutes of fare box collection and
Turnover other incomes from property development, advertisement, parking etc. Rental
income of 49 crores is estimated for 2020-21.
Economic rate of return has been estimated as 17.39%.

Competitive Landscape
• Travel options within the city are limited to bus transport, and other road transport means
limiting public transport option to buses alone
• Railways are used largely for commuting from Kozhikode to other districts and has very limited
role to play for travel within the city

Conclusion
• A reliable and safe public transport system is essential for the very survival of the city itself
and also to accelerate its economic growth.

134
http://krtl.in/kozhikode.html, DPR for Phase I Kozhikode Light Metro Rail Project, Government of Kerala, Prepared by DMRC
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• The project is planned to be clubbed with Trivandrum metro under single management and
procurement to achieve benefits of economies of scale
• The project is the initial stage of implementation. The state government has taken several steps
to expedite the land acquisition process in order to complete the project within the projected
timelines
• Delhi Metro Rail Corporation for the 1st and 2nd phase of the Delhi Metro was entitled to certain
Government of India encouragement through duty and tax concessions for the project. The
same is expected for the proposed Light Metro projects, at least in the initial stages
• Kerala Rapid Transit Corporation Limited (KRTL) proposes to engage private investors/players
for implementation of the project

Marina at Alappuzha
Sector/Industry – Tourism
Project Type – Medium Scale Project
Estimated Project Cost – INR 100 Crores
Proposed Location – Alappuzha District (3500 sq. m. land identified)

Project Description
• ‘Marina’ is a sheltered harbour designed primarily for yachts and other small boats for
recreational tourism. The facility is required for safe anchorage and parking of small speed
boats, pleasure crafts and yachts. The facility provides safe berths, utility supplies, safety &
security, and onshore facilities such as restrooms, F&B, provisioning, repair services etc. It’s
an infrastructure project for the beach tourism & watersports industry.
• A large no of ‘Marina’ projects make multi-billion dollar business in developed nations and
now in India people are at the advent stage of practice in terms of exploring water sports like
yacht-owning, jet-skis, dinghy sailing, canoeing, pleasure cruises, but these all need
infrastructure, and specifically marinas. The project has been conceived at Alappuzha District
in Kerala, and would have approximately 2000 Sq. m. of area with provision for additional
inland canal expansion up to 1500 Sq. m to accommodate different sized yachts & boats.

Market Scenario 135

• Tourism & Hospitality industry in India is expected to grow from USD 147.7 billion in 2005 to
USD 418.9 billion in 2025. Approximately 8 Million foreign tourist have arrived in India in 2015
and the footfall is expected to growth at an average rate of 7% CAGR during 2005 – 2025 period.
1 State tourism forecast in Kerala for next 30 years portrays a steady 12% annual growth rate
of foreign tourist footfall and 4% for domestic tourist footfall. As per the project feasibility

135
Tourism & hospitality, IBEF Publication, Jan 2017, Feasibility Report Alappuzha Marina DPR, Directorate of Ports, Govt. Of Kerala, July 2012
(http://keralaports.gov.in/currentproject.htm)

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study done in 2012 more than 10500 foreign tourists has engaged to waterside tourism facility
specifically leisure boating in Allepey which is accounted as 30-40% of total footfall2
• The marina project is expected to reinforce infrastructure for canal tourism and water sports
activities at Allepey with significance in services such as sightseeing of attractions, backwater
tours for families and waterside adventure activities for age group of 15-25. Focusing both on
foreign and domestic tourist influx the project has potential for development of additional
adjoined amusement facilities such as Theme Park, Dolphin Pool, Health Spa and Food Courts.
• Based on the market response the project scale may vary from medium to large but cannot
expand as a mega project due to existing built up structure surrounding the identified land. As
a general practice the project needs to accommodate tourism services from local tour
operators in terms of day tours and water sports.

Project Parameters 136

Parameter Description

Capacity Marina facility having Large (20 person per craft) Medium (10 person per craft)
and small (4 person per craft) sized yachts as well as 2 seater speed boats and
water scooters. Approximately 3, 18,000 annual tourist handling capacity only
for Marina by 2025. Inclusive of all other facilities the handling capacity shall be
doubled as per estimated optimistic scenario.

Land 3500 Sq. m (2000 Sq. m for development of boat shelter and extendable inland
canal having 1500 Sq. m canal area) for Marina. Additional 6500 Sq. m area for
water park (excluding of area requirement for dolphin pool and other auxiliary
developments)

Raw Material Civil building materials, STP setup materials – pumps , water-treatment
& Utilities equipment, structural materials, safety equipment, manpower, power and water
supply (Locally available) ; Yachts/ Boats and Water-sport equipment ( to be
imported or from regionally available suppliers).

Employment Total direct and indirect employment potential for 300 jobs
Potential

The total estimated cost for the project is INR 100 Cr (USD 15 Mn) which includes
Cost of the
basic marina facility development, other landside projects like Theme Park,
project (INR)
Health spa & Food Court and future expansion with facilities like Dolphin Pool
etc.

Profitability Index: PI = PV of future cash flows ÷ Capital Investment.

136

Update of DPR, Directorate of Ports, Govt. Of Kerala, July 2012

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70% Debt and 30% Equity, having assumed debt payment period for 10 Years.
Means of
Equity share between - Govt. of Kerala & Developer > 24% & 76% respectively.
Finance

Expected Estimated Internal Rate of Return (IRR) for Marina facility – 13.8 %, for Health Spa
Sales Turnover – 25 -26 % and for Dolphin pool – 15 % approximately, Payback period for Marina
– 17 Years. Profitability Index * 1.26 for Marina project and combined 2.67. [
Average DSCR 3.96 ] **

Competitive Landscape
At present there is no significant infrastructure available at the subject area although National and
local tour operators such as Cox and Kings (India) Pvt. Ltd, Aspinwall & Co. Tours Division, SITA (A
division of Kuoni Travel (I) P. Ltd), Cruise Lines India, Creek Cruise Cochin, GAC Shipping (India) Pvt.
Ltd, Intersight Tours & Travels (P) Ltd, Marvel Tours, Aqua Holidays and several others are sharing the
market opportunities. Since such exclusive marina development is first of its kind in the subject region
the project has ample opportunity to pioneer in waterside tourism. Apart from certain predicted
competition with houseboat services, amusement facilities and other yacht tour programs ‘Marina’
project has a wider opportunity to collaborate with local tour operators and launch and landmark
project regionally.
Since Marina project is a unique infrastructure facility and can be positioned as extended recreational
components including theme park, dolphin pool, amenities and food court, relatively standalone tour
programs and existing operators will likely intend to get a larger functional and financial benefit from
such facility. Thus it is predictable that the project will promote an inclusive regional tourism service
at Allepey rather than facing local competition.
Key Players
Ocean Blue Marinas | Kochi International Marinas, Kerala Water sports & Sailing Organization: KWSO,
Sailing Club House, Wonderla Holidays Private Limited

Conclusion
Being famous for the uniqueness of backwater tourism and current trend of rapidly growth of health
and wellness tourism in Kerala the ‘Marina’ project at Alappuzha has a promising market setting to
achieve socio-economic success. Although such high end tourism facility might be targeted
specifically to foreign tourist but according to domestic tourism trend it also has high potential to
attract equally large group of regional and national tourists at all water sport and landside amusement
facilities. Since the land is already identified by State Government and feasibility study has been done
with updated exercise performed in recent years it indicates supportive intension of the tourism
department as well as availability of adequate fund. Based on investment prospect it is recommended
to implement the Marina project under long term DBFOT (Design, Built, Finance, Operate and Transfer)
mode and the state government is keen on developing the project in PPP mode.

Medium Density Fibreboard (MDF) Plant

Sector/Industry – Manufacturing
Project Type – Mega
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Estimated Project Cost – INR 200 Crores

Proposed Location – Ernakulam - Perumbavoor area

Project Description
The proposed project is to set up a Medium Density Fiberboard (MDF) Plant at Ernakulam
Perumbavoor area. With a capacity of 800 TPA (Tons per Day). MDF is a wood based composite, an
engineered wood product made by breaking down hardwood or softwood residuals into wood fibers,
often in a defibrator, combining it with wax and a resin binder, and forming panels by applying high
temperature and pressure. MDF is dense, flat, and stiff, has no knots and is easily machined.
Market Scenario 137
• Market size of Indian MDF segment is INR 15 billion (growth at 25% CAGR over the last five
years) of which 70% is dominated by a few organized players like Greenply, Mangalam timber,
Action, VIR, Shirdi Industries etc. and 30% is accounted by imports. Globally, MDF constitutes
~65% of total panel products compared to ~4% in India. MDF, the engineered wood panel
substrate, has been growing at 15-20% CAGR over the last five years, led by increasing
awareness and acceptance. It currently accounts for a mere 7% of the wood panel substrate
market, while globally it commands a share of over 80%. Going forward, we see strong growth
opportunities, led by MDF gradually being preferred over cheap plywood segment and
increasing demand for modular furniture.
• MDF markets are now more mature, and price competitive, which has driven producers to
improve quality and develop new products and markets. MDF has many benefits as it is
available in many sizes, has no natural defects and can be easily machined.
• Kerala produces 95% of the total supply of rubber wood in India. Economic growth has
dramatically increased wood demand in India, and this trend is expected to continue. The
Indian market for particle board and plywood is estimated in value terms, at over INR 37 bn.
Of the total market, particle board including medium density fiberboard (MDF board) accounts
for nearly a quarter of the market. Demand in this sector is driven by readymade modular
furniture, modular kitchen, ready-to-move into offices/retail outlets etc. The B2B market of
small and large readymade furniture makers accounts for larger pie of the demand.

Project Parameters

Parameter Description

Capacity Medium Density Fiberboard (MDF) 800 TPD(Tons per Day)

137
Report on Wood and Panel Products Sector, Asian Markets Securities Pvt Ltd., January 20, 2016, Webpage:
http://centuryveneers.com/files/download/31a2a803a756c4a, accessed: 19 July 2017; Article on Medium Density Fiberboard (MDF),
Entrepreneur India, Website: http://www.entrepreneurindia.co/project-and-profile-details/14213, accessed: 19 July 2019; Report on Wood panel
sector , India Research Building Materials,13 October 2015, Website: http://www.centuryply.com/files/download/6a2f07fb62d2830, accessed: 20
July 2017

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Parameter Description

Land 15 acres of Land in Ernakulam Perumbavoor area to be identified. In

Perumbavoor, the wood is available at cheaper rate and in good quality. Also
Rubber wood and Chipped wood material required for the production of MDF is
available in plenty in the proposed locations in Ernakulam Perumbavoor area.

Raw Material Wood residuals (tree trunk, branches, chemicals)

& Utilities

Employment Potential to provide nearly 500 direct and indirect jobs

Potential

Cost of the Estimated total project cost is in tune of INR 200 Cr (USD 30 Mn)
project (INR)

Debt-Equity ratio of 70:30 is proposed for the project with promoter equity of INR
Means of
60 Cr and private investments/term loans in tune of INR 120 Cr (USD 18 Mn)
Finance

Competitive Landscape
• Indian states well known for woodwork include Gujarat, Jammu & Kashmir, Punjab, Uttar
Pradesh and Kerala. The MDF plant in Kerala has a lot of potential to grow as the demand for
housing has consistently grown and is likely to continue in the future. The plywood is expected
to face a stiff competition from MDF board as the MDF’s homogeneous structure and uniform
properties ensure equal strength in all directions and its dimensional stability in variable
atmospheric conditions. However, plywood alone accounts for 78% of the wood panel market
in India, the rest comprising engineered panels like MDF and particleboard. The country has
sufficient availability of tropical wood, however, in recent years, growing concerns about the
environment and the need for conservation of forests have led to reduction in the supply of
wood. However, domestically- produced MDF faces competition from imports.
Key Players
• Few Indian Major Players: Century Plyboards (India) Ltd, Greenply Industries Ltd, Mangalam
Timber Products Ltd, Nuchem Ltd, Shirdi Industries Ltd.
• Key MDF Manufacturers in Kerala: K-Board, Action Tesa.

Conclusion
There is a growing demand for MDF from the real estate sector with boom in Real estate / Commercial
/ Hospitality / Health care sectors. One of the biggest advantages of using MDF is that it is far more
affordable than plywood and can be carved and molded to one's liking.

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Rubber wood and chipped wood material required for the production of MDF is available in plenty in
the proposed locations in Ernakulam - Perumbavoor area. Demand in this sector is driven by
readymade modular furniture, modular kitchen, ready-to-move into offices/retail outlets etc.

Abattoir and Modern Meat processing unit

Sector/Industry – Food Processing
Project Type – Mega
Estimated Project Cost – INR 250 Crores
Proposed Location – Wayanad, Idukki

Project Description
• The proposed project is to set up an Abattoir and Modern Meat Processing Unit and Allied
Products at Wayanad or Idukki in 400 Acres of land at any of the aforesaid mentioned location.
The project aims to streamline meat production in the state to make it more efficient and
hygienic. Wayanad is the second highest in per capita availability of meat. The country has 77
abattoirs and meat processing plants approved by Agricultural and Processed Food Products
Export Development Authority. Kerala is one of the leading states in meat consumption with a
daily requirement of over 5000 tonnes. Less than 10% of this meat is produced within Kerala
and comes from neighbouring states. In addition to this, over 60% of the meat production is in
the unorganized sector through illegal slaughterhouses that use unscientific methods of
slaughter that result in unhygienic meat, wastage of meat, loss of valuable by-products and
creates unsanitary conditions due to improper waste management. Livestock production
practise of cattle fattening will be used in order to reduce animal movements thereby fattening
cattle herds more quickly and in much more healthier and sanitary conditions in order to obtain
better quality meat. Therefore, modern slaughterhouses are an initiative which is to be
explored considering the high demand for the product and low domestic supply.
Market Scenario 138
• Kerala is one of the leading states in meat consumption (2.46 lakh ton in 2015-16) and Kerala
has topped the list on cattle slaughter in the year 2015-2016.In addition to this, over 60% of the
meat production is in the unorganized sector through illegal slaughterhouses that use
unscientific methods of slaughter that result in unhygienic meat, wastage of meat, loss of
valuable by-products and creates unsanitary conditions due to improper waste management.
• In Kerala at least 80% cattle for meat are procured from livestock markets. In India, total meat
production increased to 2.43 million tons between July-October 2016-17, as against 2.24
million tonnes for the same period during 2015-16, registering a growth of 8.74%. India is
currently second fastest growing processed meat and poultry market globally with a CAGR of

138
Article on Beefed’ up Kerala hits a record high, New Indian Express, 04th April 2017, Webpage:
http://www.newindianexpress.com/states/kerala/2017/apr/04/beefed-up-kerala-hits-a-record-high-1589515.html accessed: 18 July 2017; Article
on Meat production registers 9% growth in 2016-2017, Deccan Herald, 17 February 2017, Webpage:
http://www.deccanherald.com/content/596787/meat-production-registers-9-growth.html, accessed: 19 July 2017; Article on Indian Food
Processing, Indian Brand Equity Foundation(IBEF),June 2017,Webpage: https://www.ibef.org/industry/indian-food-industry.aspx, accessed on 19
July 2017; Annual Report 2016-17, Ministry of Food Processing Industries, Webpage: http://mofpi.nic.in, accessed: 19 July 2017,
http://www.worldbank.org/en/news/feature/2016/01/14/malian-livestock-farmers-turn-to-cattle-fattening-to-increase-their-income ,Kerala
Animal Husbandry Department say meat consumption in the state stood at 2.46 lakh tonne (1.46 lakh tonne of cow and ox meat and 1.10 lakh
tonne of buffalo meat) in 2015-16

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22% as per a new research from global market intelligence agency Mintel. The sector is
estimated to grow at CAGR of 7.5% to become a USD 1.3 trillion valued market by 2020.
According to Mintel Market Sizes, Indian organized meat retail sector is expected to witness a
CAGR of 15.6 per cent during 2016-20.
• As per APEDA, the total processing capacity in India is over 1 million tons per annum, of which
40-50 percent is utilized. India exports about 13, 43,607 tons of meat, mostly buffalo meat.

Project Parameters

Parameter Description

Capacity A plant for the processing of cattle meat with a capacity of 10000 tonnes per
annum.

Land Land area of ~ 100 acres to be identified for this facility. The proposed districts
for this facility is Wayanad and Idukki owing to favorable weather conditions for
cattle fattening.

Raw Material Core processes: Infrastructural facilities such as Lairages, Veterinary

& Utilities examination and sampling, Isolated areas for diseased animals, Slaughter units,
Machinery and processing units, Storage areas
Supporting processes:
• Water Supply – Expected requirement 10,000 – 20,000 litres per day
• Effluent disposal – 12,000 – 22,000 litres per day
• Solid waste and blood disposal
• Hide and skin processing
• Electricity – 100 KVA

Employment Direct employment of approx. ~ 100 people, Indirect employment can be

Potential generated through meat distribution, transportation, animal husbandry, leather
manufacturing etc.

The total investment cost of the project including working capital is estimated at
Cost of the
INR 250 Cr (~USD 40 Mn).
project (INR)

The Ministry of Food Processing under Setting-up/Modernization of Abattoirs

Means of
Scheme provides financial assistance (grant-in-aid) for setting up of new
Finance
abattoirs at 50% of cost of plant & machinery and technical civil work (TCW) in
general areas subject to maximum of INR 15 crore. For difficult areas, the ceiling
is 75% of cost of plant & machinery and technical civil work subject to maximum
of INR 15 crore.

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Competitive Landscape
The major consuming states of meat in India are Uttar Pradesh, Andhra Pradesh (erstwhile), Kerala,
West Bengal and Maharashtra. The rising slaughter of buffalo in these states is indicative of increasing
consumer demand for buffalo meat. India has several integrated mechanized slaughterhouse-cum
meat processing plants and has facilities for slaughtering, processing, packing and cold storage of
meat. However, there is an increased demand for hygienic processed food (meat). Market for meat
based processed RTE food products is rapidly increasing in Kerala. Meat Products of India Limited
(MPI), Koothattukulam is selling ~ 5-30 tonnes of meat products per month. There is increased sale of
unhygienic meat across the state due to which MPI is set to open a high-tech slaughterhouse and meat
processing plant at Koothattukulam which is a '100% pollution free' slaughterhouse set up with the
support of both centre and state governments.
Key Players
Andhra Pradesh, West Bengal, Maharashtra, Delhi, Uttar Pradesh, Rajasthan are the key areas of
Processed meat production in India. Meat Products of India Limited, Koothattukulam, Kerala Goa Meat
Complex Limited (GMCL) (Govt. of Goa Undertaking)

Conclusion
• There is a need of authorized Abattoir / Modern Meat Processing units and allied products to
meet local demand of Kerala and such products offer an immense potential in domestic as well
as export market. In line with recent concerns regarding cattle slaughter, such facilities with
inbuilt cattle fattening techniques or with high standard quality check livestock procurement
processes shall eliminate the need for unhygienic cattle trading for slaughter.
• In addition to this, the proposed project possesses wide range of economic and social benefits
such as increasing the level of investment, tax revenue, employment creation and rural
income.
• Food processing sector offers huge potential for setting up of modern meat processing units.
The potential in areas like Frozen meat, ready to eat products, semi-finished products for retails
is to be focused.

Air Taxi Service

Sector/Industry – Services/Tourism
Project Type – Mega
Estimated Project Cost – INR 1100 Crores
Proposed Location:
• Circuit 1 – Trivandrum, Kollam, Pathanamthitta
• Circuit 2 – Alappuzha, Ernakulam, Idukki, Kottayam, Thrissur
• Circuit 3 – Malappuram, Kozhikode, Kannur, Wayanad, Palakkad, Kasaragod

Project Description
• It is proposed that the Government would step in to develop the basic infrastructural facilities
like the heliport and helipad. The operations would be carried out by fleet operators like Pawan
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Hans, Deccan Aviation etc. INKEL Infrastructure Kerala Limited has conducted a feasibility
assessment for the project.
• Kerala has been divided into 3 circuits and the project intends to link up tourist destinations in
these three circuits. Cochin is proposed as the Central Hub (Heliport) to base the operations
with 18 helipads all over Kerala in all the districts.
• Since the helicopter service network is a new concept in the State, the demand projections
have been made in the conservative side and the following destinations are proposed to be
linked up through 3 circuits namely
• Circuit 1: Trivandrum (Varkala), Kollam, Pathanamthitta
• Circuit 2: Alappuzha, Ernakulam, Idukki (Munnar and Thekkady), Kottayam,
Thrissur
• Circuit 3: Malappuram, Kozhikode, Kannur Wayanad (Kalpetta), Palakkad,
Kasaragod (Bekal)
• The possibilities of using the helicopter service network for allied usages identified were
Disaster Relief, Emergency Medical Services or Air Ambulance Services, Police Services cum
Airborne Law Enforcement, Moving VIPs & High-Value Assets, Search and Rescue Operations,
Agricultural Operations etc.
• The proposed Helicopter Service network should have a central hub wherein all the aspects of
operations can be controlled and supported. In the case of the proposed project, the Heliport
(hub) is intended to be set inside the Cochin International Airport Ltd. (CIAL) at Nedumbasserry.
• Based on the outcome of the traffic demand assessment and site assessment, the tourist
destinations in the Trivandrum, Alappuzha, Kottayam, Idukki, Ernakulam, Wayanad and
Kasaragod are proposed to be linked up through the helicopter service network in Phase I.

Market Scenario 139

• According to New Delhi-based Business Aircraft Operators Association, there are 550 aircraft
in the general and business aviation categories which are used for charter flights. An increase
in organ transplantation and medical evacuation has also seen helicopters being booked in
remote areas.
• Seeking to promote helicopter tourism, Indian Railway Catering and Tourism Corporation and
Pawan Hans have joined hands under an agreement that would allow flyers to book tickets
through IRCTC website. The Memorandum of Understanding has been signed to implement
the 'heli project' by making joint use of their capabilities and facilities.
• Key features of the National Civil Aviation Policy 2016 are:
• Helicopters will be free to fly from point to point without prior ATC clearance in airspace
below 5000 feet and areas other than controlled or prohibited or restricted airspace

139
INKEL Feasibility Study, http://timesofindia.indiatimes.com/india/IRCTC-to-sell-tickets-for-Pawan-Hans-helicopter-
service/articleshow/51429194.cms, http://pib.nic.in/newsite/PrintRelease.aspx?relid=146238, https://factly.in/government-launches-regional-
connectivity-scheme-udan/

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 Study on Investment Potential in Kerala

• The existing policy of allowing inclusive tour package charters will be further reviewed
to include more categories of passenger charter flights recognised globally
• Under the Regional Connectivity Scheme (RCS or UDN Scheme), the selected Airline
operators would be extended subsidies from the Central & State governments such as
sharing 20% of the Viability Gap Funding (VGF) for RCS routes, No landing or parking
charges at RCS airport, levy of excise duty on ATF for a period of 3 years
• Hiring helicopters and private planes sees steady rise among commoners. People from smaller
towns and villages in Rajasthan, Punjab and Haryana are ready to spend up to INR 2-6 lakh for
two-hour trips by helicopter. Also, regular users are increasingly chartering aircraft and not
always for work-related reasons.
• Kerala is home to the extensive coastline, with large expanse of back waters and amazing
greenery in the Western Ghats. Air taxi services can be provided across the State to some of
its exotic locations such as the back waters of Allepey, green valleys of Munnar etc.

Project Parameters 140

Parameter Description

Capacity Phase-I will include setting up of Helipad facilities at Trivandrum, Alappuzha,

Kottayam, Idukki, Ernakulam, Wayanad and Kasaragod

Land Land for the proposed helipads and heliport will be under the ownership of
government

Raw Material Lighting facilities, Wind indicators, Fire-fighting facilities, security requirements
& Utilities such as perimeter fencing, guard posts etc., administrative requirements such as
ticket booths, passenger waiting areas, crew cabins etc.

The total cost for developing the project based on assumptions undertaken in
Cost of the
the feasibility study* is ~ INR 13 Cr excluding land and helicopter cost. Broad-
project (INR)
level breakup of costs are as follows:
• Helipad Area Development : INR 3.3 Cr
• Helipad Physical and Technical Requirements: INR 2 Cr
• Administrative Requirements: INR 2.9 Cr
• Medical facilities: INR 2.1 Cr
• Others (Contingency, Interest requirements, Helipad Lighting, Fire
Fighting, Ground to Air Communication, Passenger Access Control, Wind
Indicator etc.) : INR 3 Cr

140
* INKEL Feasibility study and assumptions considering inflation in last 5 years
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It is assumed that the project will have a debt equity ratio of 1.5:1
Means of
Finance

Expected Main revenue streams are:

Sales Turnover
Expected revenue to infrastructure facility in first year of operation ~ INR 3 Cr
increasing at an annual growth rate of 10 per cent

Competitive Landscape
There are quite a few private helicopter service providers operating in Kerala who provide helicopter
chartering services for wedding, film shooting, flower showering, air ambulance, private jet charter
for business and leisure etc. However, a dedicated inter-connected network connecting all major
tourist destinations in the state is not available.
Key Players
Chipsan Aviation Helicopter Services, HeliTaxi, Joy Jets, Helitours India, Rajputana Aviation, ACS – Air
Charter Service India Pvt.. Ltd., Fly jettech, Air Charters India, Taj Air (Kerala), King Rotors

Conclusion
• The helicopter network service is a novel concept and world over it is a practice to setup such
networks in a phased manner. While phasing, it also necessary to note that sufficient traffic would
be present to justify the trips/ sorties since the operation of such trips are expensive.
• The proposed helicopter service network can be developed through the Public Private Partnership
{PPP) mode. In this mode, the Government would provide the base Infrastructure facilities like the
heliport and the helipads. Most of the existing helipads in the State are under Government
ownership and this would make the development of the basic infrastructure easier since no further
land acquisition would be involved.
• Aircraft and helicopter services are poised to become increasingly popular in Kerala as well as
India because of several reasons such as unpredictable rail networks and congested roads, long
check-in times at airports, many users will shift to use of helicopters to travel throughout country
especially in the tourism sector.
• Providing air charter services is considered to be a niche market targeting only a group of
users but there is significant scope for exploiting the full potential and for this there is a need for
adequate infrastructure facilities to be in place. This would enable better coverage to the
tourist destinations in the state and also more usage of the services. More usage of the services
would increase the flying hours and thereby reducing the cost of travel through economies of scale.

International Exhibition cum Conference Center

Sector/Industry – Infrastructure
Project Type – Mega
Estimated Project Cost – INR 500 Crores with INR 100 Crores for Phase
Proposed Location – Kakkanad, Cochin
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Project Description
• IECC Kochi is proposed to be set up at 20 acres of land earmarked by KINFRA at Kakkanad,
Kochi close to the Info Park, Smart City and the KINFRA Export Promotion Industrial Park.
• The proposed IECC shall be comparable to global exhibition centers with respect to operational
efficiency, energy efficiency, architecture, layout, interior design, acoustics, visual effects,
and other supporting facilities. Likewise, the convention center is envisaged to be a facility for
private events and high - end Government-to-Government, business-to-business and
business-to-customer meetings, exhibitions and events.
Market Scenario 141
• According to Kerala Tourism Trends Trade Survey 2016, Kerala has been pitched as a potential
MICE and wedding destination and the tourism industry in Kerala has been offering exclusive
packages for MICE and wedding settings. Increasing corporate penetration and role of wedding
planners have resulted in rapid growth in the industry and also with the huge numbers that
flow in as a part of a single booking promises wider market prospects for the upcoming IECC
• According to the trends survey, the biggest factor contributing to the growth of MICE business
in Kerala is availability of good MICE infrastructure and facilities followed by Kerala tagged
along lines of a tourist destination
• For a thriving industrial and business sector to grow, expo’s & exhibitions play a major role by
bringing the seller and customer together under a single platform. All major cities have a
permanent industrial exhibition or convention centre which would host various domestic
events, different business functions year round. Cochin is a forerunner in the area of MICE
tourism
• Total revenue (including direct & indirect) from Tourism for the state in 2016 was INR 29658.56
Crores, showing an increase of 11.12% over 2015

Project Parameters 142

Parameter Description

• Covered exhibition halls (Approx 1, 00,000 Sq. ft)

Capacity
• Convention center with a seating capacity of 5000 persons
• Mini conference hall with a seating capacity of 1500 persons
• Open exhibition space (Approx 1,00,000 Sq. ft)
• Food court

• Total site area: 6.07 ha

Land
• Build-up area: 45409 sq. m

141
http://www.manoramaonline.com/content/dam/mm/ml/news/latest-news/pdf/2016/jan/Kerala-Tourism-Trends-Trade-Survey-Report.pdf,
http://kinfra.org/wp-content/uploads/2013/04/RFP-IECC-Cochin.pdf,
https://www.keralatourism.org/tourismstatistics/tourist_statistics_201620170325143623.pdf

142
http://environmentclearance.nic.in/writereaddata/FormB/EC/FORM_1/25032017CGO3GK0QformIA.pdf , http://kinfra.org/rfp-for-
international-exhibition-cum-convention-centre-iecc-kakkanad-kochi-kerala.html
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• Water Consumption: 170 KLD (Operation phase)

Raw Material
• Power requirement: Supplied from KSEB
& Utilities
• Waste Management facility

Cost of the Total estimated project cost – INR 500 Crores (USD 77 Mn) with INR 100 Crores
project (INR) (USD 15 Mn) in Phase 1
It is proposed to use around 10 acres for the exhibition activities in the Phase 1
and the balance land will be developed in the ensuing phases commensurate
with the utilization and demand and part of it through private participation for
setting up hotels, multiplex, restaurants, paid parking etc. The approximate cost
of the project in Phase 1 is INR 100 Crores.

The project is proposed be set-up in PPP mode. The built up space shall be made
Means of
available to investors on lease.
Finance

Expected The locational advantage is expected to give a return of more than 20% to the
Sales Turnover lessee or to the operators of the project

Competitive Landscape
• Due to locational advantage, there a few convention centers functioning in Cochin. However,
convention centers with proposed capacity of 5000 persons etc. are limited.
• Convention centre facilities are also provided by five-star category hotels in the city
Key Players
CIAL Convention Center, RECCA Club, Adlux International Convention Centre, Convention Center in
Le Meridian, Marriott, Gokulam Park and other hotels in Cochin such as Gokulam Park etc.

Conclusion 143
• This IECC project, on completion, to be world class in architecture, layout, interior design,
acoustics, visual effects, general ambiance etc. with state of the art facilities, making the IECC
an attractive destination for public gatherings/congregations, meetings, incentives,
conventions and exhibitions (MICE), Industrial promotions, art and craft, trade fairs, etc. IECC
Cochin is visualized to be the best (SMART) in its class with all modern facilities
• The investors can explore various options to take space as per their requirement on long lease
for developing specific facilities. The lessee may develop the interiors required for operating
the specific facilities and will have the right to sub lease the space to other parties or groups
having expertise in operating and managing these facilities. The value appreciation of the
property, owing to the locational prominence, will enable the lessee/ investor to sublease/
sublet the space easily.
• A total area of 6,23,973 sq.ft is being planned for the International Exhibition Centre and
3,76,298 sq. ft is being planned for the Conference Hall (B+G+1) which will have integrated

143
http://kinfra.org/rfp-for-international-exhibition-cum-convention-centre-iecc-kakkanad-Cochin-kerala.html
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venue for conferencing, convention and exhibition and equipped with state-of-the-art facilities,
audio and video equipment and other auxiliary services.
• Out of the total around 2 lakh sq. ft is available for commercial activities which is intended to
be given to prospective investors on long lease.

Cryogenic Warehouse
Sector/Industry – Infrastructure
Project Type – Mega
Estimated Project Cost – INR 3000 Crores
Proposed Location – Puthuvypeen, Cochin Port

Project Description 144

• The proposed project is to establish a Cryogenic Warehouse at an area of 10 acres in
Puthuvypeen next to the existing LNG terminal. The project has been earmarked using the cold
energy available from the regasification process that can be used for creation of a zero CO2
emission cold-chain hub.
• The concept, popular in Japan and China, is being experimented within India, where the
possibility to set up cold storages near LNG terminals exists. Cochin Port has a 5 MMTPA LNG
terminal and Regasification Plant owned by the Petronet LNG Ltd. 10 acres of land adjoining
the LNG terminal in Puthuvypeen Port Based SEZ is earmarked for setting up the cold storage
on PPP basis.
• Cryogenic Warehousing proposed is basically for perishable products like vegetables, meat,
and fish and also for pharma products. The terminal area is situated in the Special Economic
Zone (SEZ) of Puthuvypeen near the entrance to Cochin Port. Recycling of waste cold from
LNG re-gasification to help produce the cryogenic air or nitrogen would serve as an energy
vector to displace fossil fuels in cooling would produce value for the LNG terminal operators
(value from waste re-cycling), cryogen producers (increased sales), fleet operators (lower
costs) and society (reduced CO2, NOx and PM emissions, health/social costs, post-harvest food
and associated losses, infrastructure costs).
• Each tonne of LNG contains the cold energy equivalent of 240kWh, quite apart from the
chemical energy contained in its methane molecules, and typically 80% of this cold energy is
thrown away.
• The proposed project can utilise this cold energy by recycling it through a co-located air
liquefaction plant to help produce liquid air or at around -196C. Once converted into liquid air,
LNG waste cold could be used in various applications such as direct heat transfer for over the
fence cold port for deep freezing and temperature controlled storage - Cryogenic warehouse.

144
http://www.financialexpress.com/industry/petronet-plans-to-use-cold-energy-to-set-up-power-units/12293/,
http://www.wpsdlocal6.com/story/35369725/frozen-food-2017-global-market-expected-to-grow-at-cagr-615-and-forecast-to-2021,
https://setis.ec.europa.eu/system/files/bham_input_action6.pdf, http://dearman.co.uk/wp-content/uploads/2016/05/The-prospects-for-liquid-
air-cold-chains-in-India.pdf
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Market Scenario 145

• The cold chain market is expected to grow at a compound annual growth rate (CAGR) of 13.2%
worldwide in 2017; and in India a CAGR of more than 25% is projected1.
• The shortage of refrigerated vehicles is increasing in India. National Centre for Cold-chain
Development (NCCD) estimates that to meet current demand, India requires a further 17,000
refrigerated vehicles.
• International Institute of Refrigeration (IIR) estimates that more than 200 million tonnes of
perishable foods could be preserved if developing countries had the same level of cold chain
as found in the developed world. As per Birmingham Energy Institute study, the cold from
projected Indian LNG imports in 2022 could in principle help produce enough liquid air to fuel
half a million liquid air refrigeration units (TRUs)
• Ministry of Shipping and the Ministry of Agriculture are spearheading a project to set up cold
chain hubs at Ports with LNG terminals like such as Cochin Port, so that they could be
developed as Perishable Handling Centres and Perishable Port Gateways.
• The global frozen food market is forecasted to grow at a CAGR of 6.15% during the period
2017-2021. With the increasing demand for quick meals, the popularity of frozen food products
is increasing. Improving living standards, growth of urban settlements, and growing working
women population is also adding to this new trend in the global frozen food market.
• Development of cold storage industry has an important role to play in reducing the wastages
of the perishable commodities and thus providing remunerative prices to the growers. The
facility can be used as a port based cold store hub for the entire Kerala region. The facility
could also be utilised by small and medium food suppliers/producers, marine processing firms
etc. Since operation of the facility is through utilising the wasted energy during regasification
process, the operation shall be economical compared to conventional cold storage.
• The Cochin LNG terminal is expected to run at 40 per cent capacity by 2019 which shall ensure
a continuous generation of waste cold for the proposed warehouse.

Project Parameters 146

Parameter Description

Capacity 5 million cubic meters of chilled and frozen buildings

Land An area of 10 acres in Puthuvypeen next to the LNG terminal has been earmarked
for setting up cryogenic warehousing

145
http://dearman.co.uk/wp-content/uploads/2016/05/The-prospects-for-liquid-air-cold-chains-in-India.pdf,
http://www.financialexpress.com/industry/petronet-plans-to-use-cold-energy-to-set-up-power-units/12293/,
http://www.wpsdlocal6.com/story/35369725/frozen-food-2017-global-market-expected-to-grow-at-cagr-615-and-forecast-to-2021,
https://setis.ec.europa.eu/system/files/bham_input_action6.pdf , http://profit.ndtv.com/news/budget/article-petronet-lng-to-run-kochi-terminal-
at-40-capacity-by-2019-1647630
146
http://www.cochinport.gov.in/index.php?opt=projects&sub=20&id=20&tab=1 , http://nccd.gov.in/PDF/Sea_Port_LNG_Regas.pdf, Cold Chain
Technologies Report by Assocham India and Sathguru, May 2017
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Raw Material A study by E4tech, conducted on behalf of India’s NCCD, shows that a typical
& Utilities LNG terminal re-gasifying 7100 tons of LNG/day can produce 2,600 tons of liquid
nitrogen, enough to provide the cooling for almost 1,100 chilled and frozen
refrigerated trucks operating around the clock and peak time cooling (three hours
a day) for 7.5 million cubic meters of chilled and frozen buildings.

The estimated total project is INR 300 Crore (~USD 45 Mn)

Cost of the
project (INR)

Means of Various means of finance and support is available form Government of India.
Finance Few being
• Access to low interest fund of Rs.5, 000 crores from WIF from the
National Centre for Cold Chain Development under the Ministry of
Agriculture.
• Access to National Clean Energy Fund
• Credit linked subsidy at 35% (up to 50%) for cold chain infrastructure
• Investment linked 150% tax deduction
• Automatic route clearance for 100% FDI with External Commercial
Borrowings route open

Competitive Landscape 147

• Petronet LNG recently has invited expressions of interest from players to help it develop an
integrated cold store facility at its LNG import terminal at Dahej, Gujarat as well. Since the
application of the technology is at a nascent stage and with increased focus on environment
this field is poised to gain significant competition from cryogenic technology providers,
logistics providers etc.
• Sainsbury in the UK has become the first company in the world to introduce a refrigerated
delivery truck cooled by a liquid nitrogen powered engine
• Unlike other alternative refrigeration technologies, liquid air can cater to full range of cold chain
services - from pre-cooling of produce to warehouse cold storage and long distance vehicle
refrigeration. It can also supply the cold for blast freezing and other forms of food processing.
Liquid air can find applications beyond agriculture like back-up power and air-conditioning in
buildings.

Conclusion
• There is therefore a huge opportunity to utilize the earmarked area on PPP (DBFOT) basis to
build and operate cold chain facilities after tying up with PLL for the cold energy.

147
http://www.sagarmala.gov.in/sites/default/files/2.Final%20Master%20%20Plan_Cochin.pdf,
http://www.sciencedirect.com/science/article/pii/S1876610216314485, http://www.maritimegateway.com/interviews/riding-liquid-cargo/).
http://www.cochinport.gov.in/index.php?opt=projects&sub=20&id=20&tab=1
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• The facility could also be utilized by small and medium food suppliers/producers, marine
processing firms etc. The operation of the facility is considered to be far more economical
compared to conventional cold storage.
• Dearman, a UK-based technology company, has developed a family of engines that uses
liquid air/liquid nitrogen to deliver zero-emission power and cooling.
• National Center for Cold Chain Development is pursuing the potential of clean energy from
liquid air based cold chains by recovering stranded cold from LNG re-gasification. The
prospect of developing cryogenic warehouse at the Cochin LNG terminal can be developed
under this window.

Propylene Oxide/ Polyol Petrochemical Plant

Sector/Industry – Manufacturing
Project Type – World scale Petrochemical Complex
Estimated Project Cost – INR 5000 Crores
Proposed Location – Kochi (BPCL-Kochi Refinery)

Project Description
• The proposed project is for developing a Propylene Oxide (PO) manufacturing plant of 200000
MPA capacity required to produce Propylene Glycol & Polyether Polyols at Kochi is in the
vicinity of existing BPCL Kochi Refinery
• PO is a highly reactive versatile compound which has major application for the production of
Polyether Polyols (70%) for use in making Flexible, Rigid foams (PU) , Non-foam applications,
Glycol Ethers (15%) & Propylene Glycol (15%)
• Flexible foams are used in mattresses, cushions etc. Rigid foams are used in automotive
applications, Building Insulation. Propylene Glycol (PG) is used in the manufacture of
Unsaturated Polyester Resin that finds application in the production of Fibre glass reinforced
plastic. Other uses include Pharmaceuticals, Deodorants & Cosmetics.
• Endowed with an excellent port infrastructure with ICTT, bulk cargo terminal, oil terminal and
airport connectivity, Kochi is an ideal location for the project. This project will help meet the
increasing demand for polyols. The proposed location in the vicinity of refinery makes
integration of feedstock supply, utilities, off-sites and other general facilities easy.
Market Scenario 148
• The total installed capacity of Propylene Oxide in India in 2015-16 is nearly 36000 MT with a
capacity utilization of ~ 70%. Total consumption of PO in 2015-16 was 51000 MT. India imported
nearly 25552 MT of PO worth INR 256 Cr in 2015-16.
• PO is a major derivative of Propylene after Polypropylene, The market of PO in India is
anticipated to grow at a CAGR of over 8% during 2016 – 2025.
• Currently India imports PO from Korea (68%), Singapore (18%) & Saudi Arabia (14%). Freight
costs are high for importing PO. Hence the advantage of having domestic production of PO is
necessary to support Polyols production.

148
http://www.chemicals.nic.in/sites/default/files/Chemicals%20%26%20Petrochemicals%20Statistics%20At%20A%20Glance%202016_0.pdf
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• In India, PO demand will be driven by the growth in industry applications such as bedding,
mattresses, automobiles, construction and energy efficient buildings.
• Polyol consumption is expected to grow at an annual rate of 11 % CAGR over the next 5 years.

Project Parameters 149

Parameter Description

2,00,000 TPA (PO/Polyol/PG & Utilities)

Capacity
• Feed material pre-treatment section
• Direct oxidation reaction section
• Initial separation section/Solvent recovery/recycle/Catalyst removal
• Final distillation section

Land 180 acres

Raw Material • Raw Materials: The main raw materials for manufacture of Polyol are
& Utilities Propylene Oxide and Ethylene Oxide. Other raw materials required are
glycerin, sorbitol, glycols, and pyrophosphate.
• Recirculating Cooling Water: 40,000 m^3/ hr
• Pumps, Heat Exchangers, Reactors, Adsorber, Distillation column
components, storage tank, flash

Employment > 3000

Potential

Licensors for • M/s Evonik

PO plant*
• M/s Sumitomo Chemical
• M/s Himtech Engineering

Cost of the INR 5000 Crore (USD 770 Mn)

Project
Estimated cost of equipment – INR 2500 Cr
• Process Machinery – INR 1500 Cr
• Fabricated Equipment – INR 500 Cr
• Catalysts – INR 10 Cr
• Storage – INR 40 Cr

149
Raw Materials: The main raw materials for manufacture of Polyol are Propylene Oxide and Ethylene Oxide. Other raw materials required are
glycerin, sorbitol, glycols, and pyrophosphate. Recirculating Cooling Water: 40,000 m^3/ hr Pumps, Heat Exchangers, Reactors, Adsorber,
Distillation column components, storage tank, flash
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Competitive Landscape 150

• PO capacity addition in Middle East, Korea & Singapore will result in increase of imports to
India.
• Furthermore, PO is projected to dominate global Propylene market, on account of increasing
government regulations for reducing greenhouse gas emissions in environment supported by
tremendous growth in the production of light commercial vehicles and packaging industries.
5
• BASF SE, China National Petroleum Corp. (CNPC), Enterprise Products Partners L.P., Exxon
Mobil Corp., Formosa Plastics Group (FPG), Lyondell Basell Industries AF S.C.A., Reliance
Industries Ltd., Royal Dutch Shell PLC, Saudi Basic Industries Corp. (SABIC), The Dow Chemical
Company, Total S.A., Valero Energy Corp. are some of the leading producers of Propylene.
Key Players
• Manali Petrochemicals Limited, Chennai (Polyol- 75,000 TPA , Propylene Oxide - 36,000 TPA)
(Plans to invest INR 100 Cr to increase Polyol capacity by 50,000 TPA)
• India Glycols (Methylene glycols - 175,000MTPA, glycol ethers and acetates - 70,000MTPA )
• Huntsman India (Araldite® resins and Aradur® hardeners - 30,000 MTA)
• Expanded Polymer Systems (polyether polyol - 16,250 MT/Annum, aliphatic polyester polyols
- 300 MT/Annum, aromatic polyester polyols - 3,000 MT/Annum)
Conclusion 151
• In India, strong demand for Propylene Oxide by various end user industries, increasing
discretionary income and rapid industrialization are expected to drive India Propylene market
during 2016-2025. Moreover, booming automotive, FMCG and furniture sectors is anticipated
to aid the country's Propylene industry.
• There is considerable opportunity for the setting up of such downstream and ancillary
industries taking into account the nature of products and widespread utilisation in common
applications
• The Government of India launched the Automotive Mission Plan 2016-2026 in 2016 with an
aim to increase the contribution of automotive sector in the country's GDP to 12% by the end
of 2026. Hence, growing automotive sector is expected to positively influence the market of
Propylene Oxide in India during forecast period.
• Various technology partnership opportunities can be worked out to develop this plant in Kerala
as Propylene Oxide market will grow swiftly owing to enhanced demand from packaging,
automotive, footwear Industries which see a widespread potential in Kerala

150
http://www.prnewswire.com/news-releases/india-propylene-polypropylene-propylene-oxide-acrylonitrile--cumene-market-report-2011-2025--
-research-and-markets-300441116.html
151
Global Propylene Market By Application, By Region, Competition Forecast and Opportunities, 2011 – 2025, http://www.business-
standard.com/content/b2b-chemicals/manali-petrochemicals-to-invest-rs-100-cr-for-polyols-capacity-expansion-115052100770_1.html,
http://www.indiaglycols.com/divisions/chemicals_division.htm ,http://www.huntsman.com/corporate/a/Careers/Global%20Careers/India ,
http://www.expanded.co.in/present-day-operations , http://www.deccanchronicle.com/150904/nation-current-affairs/article/petrochemical-
project-takes , http://cpmaindia.com/propylene_about.php , http://www.business-standard.com/content/b2b-chemicals/manali-petrochemicals-
to-invest-rs-100-cr-for-polyols-capacity-expansion-115052100770_1.html
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PVC Manufacturing
Sector/Industry – Manufacturing
Project Type – Mega
Estimated Project Cost – INR 3000 Crores
Proposed Location – Kochi (BPCL-Kochi Refinery)

Project Description
The proposed project is to set up a PVC manufacturing facility of capacity 150,000 TPA. Polyvinyl
chloride, commonly abbreviated PVC, is the world's third largest plastic in production and
consumption. A key feature of PVC is that it can be combined with additives and fabricated into a wide
variety of forms. These include pipes and fittings, profiles and tubes, windows and doors, sidings,
wires and cables, film and sheets, toys and other moulded products and floorings. This quality,
together with features such as durability, self-extinguishing property, resistance to most chemicals
and oil, mechanical strength and ease of processing, means that PVC is a competitive and attractive
option for many end uses in construction and infrastructure, agriculture, electrical products and
healthcare. Endowed with an excellent port infrastructure with ICTT, bulk cargo terminal, oil terminal
and airport connectivity, Kochi is an ideal location for the project.

Market Scenario 152

• The total installed capacity of PVC in India in 2015-16 is nearly 1,423,000 MT with a capacity
utilization of ~ 101%. Total consumption of PVC in 2015-16 was 2,936,000 MT. India imported
nearly 1501311 MT of PO worth INR 8788 Cr in 2015-16 and exported nearly 3000 MT of PVC
worth INR 33 Cr.
• Imports of PVC in India are now at almost 50 percent and growing rapidly every year and are
expected to reach to USD 3 billion in few years
• Taking into account the demand drivers and CAGR of around 9% from 2002-2015, it is
estimated that annual demand growth for PVC will be at least 13% in the next 5 years and is
expected to cross 5 million tons in 2020.
• PVC demand in India shall be driven by sectors such as Agriculture, Infrastructure (rural water
and sanitation infrastructure, smart cities will boost to PVC consumption), Housing (pipes,
doors & windows, conduits, wires & cables) - Potential for PVC in the building and construction
sector alone is over 700 KTPA (without taking smart city development into account), green
building etc.
• PVC, being recyclable, less energy intensive and having longer life will be in demand in these
segments. PVC has packaging as well as other applications in the FMCG, pharmaceutical &
retail segments. These sectors are expected to grow in the coming years as the customer base
comprising India's young population increases.
• Further, there are a number of applications in India, which are still nascent or currently
unexploited like, wall cladding, technologically-advanced pipes for sewerage application, and

152
: http://ficci.in/spdocument/20684/PVC-Report-new.pdf ,
http://www.chemicals.nic.in/sites/default/files/Chemicals%20%26%20Petrochemicals%20Statistics%20At%20A%20Glance%202016_0.pdf ,
http://www.business-standard.com/content/b2b-plastics-polymers/imports-hurting-domestic-pvc-manufacturing-industry-a-report-
116012000615_1.html
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liners for landfill applications, decking, furniture applications, waterproofing membranes and
food grain storage.
• These products are well established abroad and with ever-increasing urbanization, changing
lifestyles, new technologies in construction and other factors, investments in these sectors are
expected in the future. This bodes well for the PVC industry.

Project Parameters 153

Parameter Description

Capacity 150000 MTPA

Land 80 acres

Raw Material • Raw material: PVC Resin, Stabilizer, Lubricants, Fillers

& Utilities • Water: 1000 KL/ year
• Ethylene: 75000 TPA Ethylene can be made available from BPCL- Kochi
Refinery, which is the raw material for production for VCM and VCM is
the raw material for PVC
• Chlorine: Chlorine which is a by-product of Travancore Cochin Chemicals
Ltd., Cochin and can be procured from them
Licensors for • M/s Ineos
PVC Plant • M/s Arkema
• M/s JNC
• M/s Kemone

Total cost ~ 3000 Cr (~USD 460 Mn)

Cost of the
project (INR)

Competitive Landscape 154

• Export of plastic products from India stood at USD 7.64 billion in FY 2015-16. Domestic
consumption of plastic is expected to touch 20 million Metric Tonnes by 2020.
• Per capita PVC consumption in India is only 2 kg as compared to China’s 10 kg. PVC industries are
essential to the growth of the economy with the product finding applications in variety of sectors
as well as being a source of employment. Today, close to 50% of the demand for PVC in the country
is met by imports. Though level of imports have been increasing over the years and meeting the

153
Suspension polymerisation, emulsion polymerisation and bulk polymerisation are the three types of PVC manufacturing process. PVC made
from suspension is by far the most common. The licensors is poised to offer advanced technologies.
154
http://ficci.in/spdocument/20684/PVC-Report-new.pdf, https://www.ibef.org/exports/plastic-industry-india.aspx ,
https://www.icis.com/resources/news/2015/03/20/9869814/india-s-reliance-operating-all-pvc-units-at-near-full-capacity/ ,
http://sanmargroup.com/pvc-manufacturing.php , http://www.dcwltd.com/ , http://www.finolexwater.com/about-finolex-industries/ ,
http://www.chemicals-technology.com/projects/dahej/,
ttp://sanmargroup.com/Compliance/EC%20for%20PVC%20Plant%20capacity%20of%20170000%20TPA%20dated%2028-11-2005.pdf
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supply-demand deficit for PVC in the country, it remains to be seen whether this can be sustained
over medium to long term when domestic demand grows.
• Very little capacity expansion is seen in countries which are currently exporting to India, meaning
that there is an upper threshold beyond which these countries cannot supply. There could be a
case in the future where demand for PVC in India could possibly outstrip supply. This would lead
to processed PVC products not being available for use as well as a lot of downstream processing
facilities having poor capacity utilization levels. Other PVC manufacturing players in India are
targeting to fulfil these opportunities and capture market share in this space.

Key Players
• Reliance Industries Limited (Dahej 155 - 3,15,000 tonnes/year, Hazira – 360,000 tonnes/year,
Vadodara – 80,000 tonnes/year)
• Chemplast Sanmar (2,92,000 TPA) 156
• DCW group (90,000 TPA)
• Finolex (PVC-U Pipes - 2,50,000 MTPA, PVC Resin - 2,72,000 MTPA

Conclusion
This project is poised to be showcases as a key industry representing Kerala in the “Make in India”
initiative. The existing refinery facility along with the proposed PVC manufacturing plant can
showcase itself as an upcoming industrial sector offering varied opportunities for the downstream
PVC product market.

Super Absorbent Polymer

Sector/Industry – Manufacturing
Project Type – Mega
Estimated Project Cost – INR 900 Crores
Proposed Location – Kochi (BPCL-Kochi Refinery)

Project Description
• Superabsorbent Polymers (SAP) are hydrogels which can absorb water many times higher
than its own weight. Compared to common absorbents like tissue paper, wood pulp fluff etc.
SAP can absorb moisture up to 5 to 100 times of their own weights. Glacial Acrylic acid and
Caustic soda is used to produce recipe grade SAP, which is further subjected to cross-linking
using chemicals/initiators to produce quality SAP.
• The project plans to set-up a manufacturing unit of Superabsorbent Polymer of 60,000 TPA
capacity.
• Endowed with an excellent port infrastructure with ICTT, bulk cargo terminal, oil terminal and
airport connectivity, Kochi is an ideal location for the project. This project will be the very first
endeavour to supply local demand of SAP as most of the products are being imported now.

155
The Dahej complex VCM, PVC and chlor-alkali plant expansion project was implemented in two phases. The total estimated cost of the project
was INR 3505 Cr
156
The total estimated cost of Chemplast Sanmar Cuddolore PVC plant (140000 TPA capacity) was INR 500 Cr (2005-06)
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The proposed location in the vicinity of refinery makes integration of feedstock supply, utilities,
off-sites and other general facilities with the refinery easy

Market Scenario 157

• According to “Global Superabsorbent Polymer Market 2016-2020”, Superabsorbent polymers
market was valued at US$ 39,548.1 Mn in 2015 and is expected to reach US$ 64,761.9 Mn by
2022, growing at a CAGR of 7.3% during the forecast period 2016-2022.
• India imported 151,223 tonnes of other acrylic polymers in primary forms which include Super
Absorbent Polymers worth USD 328 Mn in 2016-17 which saw a 25% growth from 2015-16.
• The market for diaper is the largest application for superabsorbent polymers and have been
growing with a CAGR of 22.23% over past five years. This is driving the demand for SAP.
• The medical industry has contributed and is expected to fuel more demand for superabsorbent
polymers in the market through its wound care segment. Due to its water retention property
and advancement in technology, superabsorbent polymers are used in manufacturing medical
products which include traditional and advanced wound care products such as bandages and
surgical pads among others. These polymers help absorbing exudates and liquids leaving the
wound dry. This prevents itching and quick recovery of wound.
• SAP is used in agriculture for drip irrigation techniques which reduces water loss leading to
irrigation frequency reduction by 50%. Agriculture sector is poised to fuel demand for
superabsorbent polymers in the near future.
• SAP is also used in Sanitary napkins & Adult diapers. The demand is increasing, with focus on
rural markets with regard to female hygiene products.

Project Parameters 158

Parameter Description

Capacity 60,000 TPA

Land 20 acres

Raw Material Glacial Acrylic Acid:- Being produced from the petrochemical complex of BPCL –
& Utilities Kochi Refinery

Employment 500 to 1000 direct jobs and up to 2,000 indirect jobs

Potential

Cost of the ~ INR 900 Crore (~USD 140 mn)

project (INR) The estimated breakup of costs are as follows:
• Land - ~ 13 Cr

157
Source: http://www.credenceresearch.com/report/superabsorbent-polymers-market , http://commerce.nic.in/eidb/Icomq.asp
158
https://dir.indiamart.com/impcat/super-absorbent-polymer.html, http://www.starchemical.in/super-absorbent-polymer.html#super-
absorbent-polymer, * Suggested licensors for technology outsourcing , http://www.prnewswire.com/news-releases/global-sap-superabsorbent-
polymers-market-driven-by-top-6-companies-at-80-sap-manufacturing-capacity-520573382.html
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• Building comprising of plant area, office, store, packaging space,

processing space, yard, open space - ~ 51 Cr
• Machinery, working capital and other expenses - ~ 836 Cr
Licensors for • M/s Evonik
the SAP plant* • M/s Yixing Danson Technology
• M/s SANYO Chemical
Means of Project is expected to come up in JV mode, the JV partner providing the License/
Finance Equity and ensuring marketing of SAP to end-users

Expected • SAP cost per kilogram varies based on absorbency and retention
Sales Turnover capacities required by application
• Assuming plant production capacity of 30% in year 1, the estimated
revenue per year will be in tune of INR 290 Cr

Competitive Landscape
• Dominated by major players world–wide such as Dow, BASF, Nippon Shokubai, San Dia
polymers, Evonik, & LG Chem. There are minor Chinese players
• These large players have inbuilt research and development centre. Companies focusing on
manufacturing baby diapers focus on product thinness to ensure optimal comfort and
minimizing environmental impact. To achieve this, companies are procuring SAP with highly
absorbent cores and also reducing the weight of bulkier materials such as fluff pulp. This is
one key application which will strive need for innovation in SAP manufacturing and
processing.

Key Players
• No domestic player in India. SAP demand is met entirely through imports.
• The major end-users are P&G, Unicharm & Johnson & Johnson.

Conclusion 159
• Super-absorbent polymers have immense potential to cater to key environmental issues and
the same is being researched extensively worldwide. Plant growth and different
physiological activities are restricted by drought stress and the application of super-
absorbent polymer could conserve soil water, making same available to plants for increased
growth and biomass accumulation especially under severe water stress. Thus, application of
SAP is a suitable soil management practice for the locations characterized by severe water
stress.
• SAP has been already indispensable for diapers and sanitary products. In many countries,
due to falling birth rate and aging population the increase rate of diapers for elderly adults
tends to exceed that of diaper for babies, which increases the total demands of SAP. SAP

159
https://www.gminsights.com/industry-analysis/synthetic-and-bio-super-absorbent-polymer-sap-market , http://www.socochem.com/about-
us.html , https://www.thesuperabsorbentsource.com/aboutus.cfm
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opportunities in this space can become a huge opportunity for the proposed plant at Cochin
to capture.
• The synthesis of superabsorbent polymers is done through various techniques such as gel
polymerization, copolymer synthesis, suspension polymerization and solution
polymerization. Opportunities lie in import of such technologies for synthetization of SAP. .
• Make in India sector policy offers various incentives for research and development, green
technology and practices

Elevated Highway
Sector/Industry – Urban Infrastructure
Project Type – Mega
Estimated Project Cost – INR 15000 Crores
Proposed Location – Multiple location between Trivandrum to Kannur

Project Description
• An elevated highway is a controlled-access highway that is raised above grade for its entire
length. Elevation is usually constructed as viaducts, typically a long pier bridge. Technically,
the entire highway is a single bridge. Adopting the same model, Kerala focuses to decongest
the roads in the State, which can be further expanded providing connectivity throughout the
State.
• An elevated expressway across the State from Kannur to Trivandrum along the western side
of National Waterway III that can link major district capitals, airports, major ports, and
transhipment terminals has been suggested by the State Government in 2016-17. An amount
of INR 50 lakh has been earmarked for carrying out the feasibility study for the proposed
elevated highway that is to transform the face of Kerala. The vision is to develop a multimodal
and integrated transport system for the State.
• The Elevated Highways are costlier than ordinary highways. However, the advantages of
Elevated Highways are manifold such as the pedestals of elevated highways will occupy only
two to three meters on the ground and since minimal land acquisition is involved, the work
can be commenced immediately.
• New highway, road widening projects in Kerala has faced many restrictions and oppositions
with regards to land acquisition and displacement. Also, buses plying through the new
highways stopping at regular intervals, operation of the signal systems etc. further reduces
vehicular speed and time of travel between districts. Due to aforesaid reasons, elevated
highways is a promising option to consider.

Market Scenario
• Value of total roads & bridges infrastructure in India is expected to expand at a CAGR of 13.6
per cent over FY 09–17 to USD 19.2 billion. In FY 16, road projects worth USD 2.21 billion has
been awarded under Public Private Partnership (PPP) mode. Investment of USD 31 billion is
expected in PPP during the next 5 years (by 2020) for national highways. Government is
planning to offer a bonus of 10 per cent of the total project cost to firms that construct & deliver
highway projects before deadline.
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• Since people can travel below the elevated highway without paying toll, there is no resistance
on collection of toll from the public for the elevated highways and hence, this becomes a viable
proposition. Also, the possibility of substantial reduction in road accidents and less fuel
consumption will substantiate the initial costs of the project.

Project Parameters 160

Parameter Description

Capacity The proposed routes are from Thiruvananthapuram to Kannur in phases of 25-
50 km lengths bypassing high traffic routes.

The proposed routes are of 25 km stretches between the following districts:

Proposed
• Trivandrum to Kottayam
Routes
• Kottayam to Ernakulam
• Trivandrum to Kozhikode (bypassing Thrissur/ Ernakulam)
• Kozhikode to Kannur
• Kannur to Kasaragod
The highways shall be access-controlled with toll only at the beginning of each
stretch of 25 km

Raw Material Water, Construction Equipment, Cement bound Material, Concrete

& Utilities

Employment It has been estimated that a total number of 4,076 man-days are required for
Potential construction of one kilometre of highway

Cost of the INR 15000 Crores (~USD 2300 Mn)

project (INR) For elevated highways, the cost of construction estimated is approximately INR
100 Crores per Kilometre for roads with 24 metres width

Means of The project is planned to set-up the project in PPP mode in phases
Finance Road projects financing is typically debt intensive with debt equity ratio of 70:30
or even higher. Promoter's contribution ~ INR 4500, Term Loans/Borrowings
from External Agencies etc. ~ INR 10500 Cr

Expected Revenue would be generated from toll charges. For a typical Indian highway road
Sales Turnover project on annuity basis, where government takes the revenue risk, the project
IRR is expected to be 12-14% and equity IRR would be 14 -16%. For toll projects,
where the concessionaire assumes the traffic risk, the project IRR is expected
to be around 14-16% and equity IRR around 18-20%

160
http://pib.nic.in/newsite/PrintRelease.aspx?relid=164460, http://jms.nonolympictimes.org/Articles/June-2014-Article-3.pdf , Guidelines for
Investment in Road Sector, www.nhai.org
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Competitive Landscape 161

• Kerala government is pushing fast infrastructure development in the state to augment its
connectivity to major tourism destinations and to ease travel within the state. Road projects
are largely undertaken by the Public Works Departments and City development authorities.
Under these, different PPP models are executed with national and local players.
• Road infrastructure has been key government priority; sector has received strong budgetary
support over the years. Financial institutions received government approval to raise money
through tax-free bonds. 100 per cent FDI is allowed under automatic route subject to applicable
laws and regulations
• Rising vehicular traffic is a key factor for expansion of roadways:
• Sales of passenger vehicles increased at a CAGR of 10.1 per cent during FY 06 – 16 and
reached 3.4 million in FY 16
• Sales of commercial vehicles in the country increased at a CAGR of 5.5 per cent in FY
10 – 16, with the number reaching 782,814 during FY 16

Key Players
L&T, AFCONS, IL&FS, Road Infrastructure Company Kerala Limited, Roads & Bridges Development
Corporation of Kerala Ltd., Shilpa Projects & Infrastructure Pvt. Ltd., Rajdeep Group etc.

Conclusion
• Implementing elevated highway a promising option in Kerala as the land acquisition issues
affect the local people and less land is required for the Project. Since rehabilitation is note
required and with restrictions on public transport fleet, no cross roads etc. this will facilitate
non-stop travel for long stretches
• It may not be feasible to have long stretches of elevated highway in one go. A shorter stretches
of less than 10-50 km shall be taken up initially with provision for expansion.
• Detailed traffic study and feasibility study shall be undertaken by consultants in prior to
implementation.
• The project is suggested to be implemented in PPP mode (BOT type is suitable for toll road
projects) and can qualify for Viability Gap Funding of government. The project can also explore
the Hybrid Annuity Model in which a private player is required only to partly bear financing
risk.

Inland Waterways and Cruise Development

Sector/Industry – Transport/Tourism
Project Type – Mega
Estimated Project Cost – INR 10000 Crores

161
https://www.ibef.org/download/Roads-February-2017.pdf, https://www.pppinindia.gov.in/faqs ,
http://www.keralapwd.gov.in/getPage.php?page=NHDP%20Home&pageId=289 , http://www.projectsmonitor.com/guest-articles/we-see-bright-
opportunities-in-the-road-construction-sector/ , http://pib.nic.in/newsite/PrintRelease.aspx?relid=135821
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Proposed Location – Multiple (Rivers and backwaters of Kannur and Kasaragod district)

Project Description
• The project plans to develop the inland navigation waterways to reduce congestion on roads
and also to promote backwater tourism. This project envisages water connectivity, linking all
the lagoons and river estuaries.
• The River Cruises industry comprises the following stakeholders: Department of Inland Water
Transport, Department of Tourism, River Cruise Operators/ Cruise Liners, Ship Agents, Tour
Operators, Provision suppliers
• The major benefits of Inland Water Transport are cheaper mode of transport, safe and energy
efficient, more environmentally friendly and cause least CO2 emission. Diversion of a part of
the cargo from road to Inland Water Transport will decongest the roads, reduce accidents and
substantially reduce the transportation and fuel cost.

Market Scenario
• Foreign and Domestic Tourist arrival to Kerala during the year 2016 is 10,38,419 and 1,31,72,535
respectively. Total Revenue (including direct & indirect) from Tourism during 2016 is INR
29658.56 Crores. With regards to inland waterways & cruise development, Kerala has a
coastline of around 590 Km and backwater tourism I a key attraction for tourists
• Government support for investments based on integrated water use for irrigation, drinking and
industry and for controlled flow, strategic important alternate route for bulk movements,
tourism related, new canal systems, river linking projects can be worked out
• Inland waterways in the State offer a unique opportunity for the development of tourism and
cargo traffic apart from its navigational importance and potential for fisheries. However, a
coordinated development of inland waterway system with focus on tourist infrastructure and
cargo movement may be stresses upon for exploiting the potential in these sectors. With a
number of lagoons and interconnecting canals and rivers provide an ideal mode for transport.
Kerala has four National Waterways which covers a length of more than 450 kms, provides
ample scope for Inland waterways and Cruise Development in the State. Further, the State
Government has been supporting investment in major infrastructure development projects for
promoting backwater tourism in Kerala.

Project Parameters 162

Parameter Description

Land • Rivers and backwaters of Kannur and Kasaragod district. For cruise,
around Chandragiri, Tejaswani, Perumba, Kuppam, Valapattnam and the
backwaters, among others

Economic Review 2016, GoK, http://content.icicidirect.com/mailimages/IDirect_DredgingCorp_IC.pdf,

162

http://www.karnatakatourism.org/policy/river_cruise_karnataka.pdf , https://www.thequint.com/news/business/will-indias-navigable-
waterways-turn-into-highways-for-transportation
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Parameter Description

• Cruise Liner, On Board facilities (Cabins, play area, indoor games,

Project
restaurant etc.), Off-Board Infrastructure (jetty facilities, lounge area,
facilities
connectivity to base stations etc.). In order to establish robust waterways
systems bypassing problems like low height bridges obstructing traffic
and diverting river navigation, reconstruction of bridges and connecting
roads is essential alongside with dredging along coastlines, and ongoing
maintenance of these is an important aspect of successful
implementation of waterway projects

Employment • The total contribution of travel and tourism to employment was

Potential 37,315,000 jobs in 2015 (8.7 per cent of total employment). Moreover, as
per “Regional Tourism satellite Account for Kerala”, the total number of
jobs created directly and indirectly by the sector between 2009 and 2012
turned out to be 23.52 per cent of the total employment in Kerala.
• Tourism sector created 14 lakhs jobs as per the report. Therefore, it can
be concluded that a project of this scale would create > 2000 direct and
indirect jobs.

Cost of the INR 10000 Crores (~USD 1550 Mn).

project (INR)
Estimated break-up for road, bridge development works and dredging are given
below.
• Road development ~ INR 1500 Cr
• Bridges reconstruction, dredging and maintenance ~ INR 2000 Cr

Means of • The project could be set-up in PPP mode.

Finance • Estimated industry average for debt/equity ratio for river cruise projects
is 0.6x

Competitive Landscape 163

• River cruises have been predominantly present in rivers that have excellent navigation
systems. Cities like Venice and villages in the backwaters of countries like China and India
(western coastline and the north-eastern States) thrive on river and canal cruises for livelihood.
Some of the best examples of river cruises come from river Amazon, river Nile and river
Thames.
• As the wildlife sanctuary at Thekkady, the Periyar River has been dammed to provide an
extensive fresh water lake to enable tourists to have boat cruises. In Vembanad Lake and other
backwaters, there are areas suitable for aquatic sports and other activities. Houseboats in the
waterways help attract a large number of foreign as well as domestic tourists to the State.
Thus, development of inland waterways can act as an important tool for promotion of tourism.
Also, main tourist centres such as Kochi, Alappuzha, Kodungallur, Ponnani, Thriprayar,
Cheruthuruthy etc. along the West Coast Canal route also offers good potential for pilgrim
tourism.

163
http://tourism.gov.in/sites/default/files/Guideline_5.pdf
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 Study on Investment Potential in Kerala

Key Players
KSINC, KSWTC, KTDC, IWAI

Conclusion
• The project offers varied opportunities to capture potential of integrating Inland Waterways
with coastal shipping for the movement of cargo to ports. With waterways connecting the
ports, it would be economical to distribute the cargo through waterways. It is also possible to
integrate inland waterways with coastal ports to accommodate coastal and international traffic.
• According to Government of India scheme for assistance to agencies for tourism infrastructure
development, development of cruise terminals can be taken up under the scheme. The Ministry
of Tourism would bear 100% of the project cost (not more than 25 Crore) based on the project
plan and estimates submitted excluding the items which are the exclusive responsibility
of the Central Agencies.

Aerotropolis
Sector/Industry – Infrastructure
Project Type – Mega
Estimated Project Cost – INR 850 - 1000 Crore
Proposed Location – Kannur

Project Description 164

• The Aerotropolis consists of an airport city core and outlying corridors and clusters of aviation-
linked businesses. The proposed project is in juncture with the upcoming Kannur International
airport, first phase of which is ready to be commissioned this year. The three major
components of Kannur aerotropolis includes:
• Traditional Industries - Marine Product Processing, Cashew Processing, Coir
Processing, Plywood, Spices, Silk production, Handloom & Textile, Coffee Processing,
Handicrafts, Floriculture
• Induced Industries considering airport as catalyst –Aviation MRO, Aerospace
Manufacturing, Aviation Institute, Gems & Jewellery, Logistics
• Real Estate – As a support facility such as Tourism & Hospitality, Medical facilities,
Commercial (IT & Non-IT)
• With the onset of Kannur airport which was envisioned taking into account the future demand
of the passenger traffic of the emigration population from North Kerala and the huge tourist
volume in the hinterland, the district has a huge opportunity to be developed as an industrial
hub in the state. Thus, with vision to have a holistic project catering to the airborne
passengers, logistic, industrial and social requirement of the entire hinterland, an
Aerotropolis is advised in the subject site at Mattannur in Kannur

164
Feasibility study for landside development of Kannur Aerotropolis by INKEL and Jones Lang
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 Study on Investment Potential in Kerala

Market Scenario
• Although Kannur has a diverse agricultural and marine base, it is still untapped. The proposed
Aerotropolis ought to have a vision of leveraging on the existing untapped potential of Kannur
and adjoining Kasaragod district in different spectrums like agro processing, marine
processing and tourism.
• Kannur has historically been bestowed with the status of the `Town of Export Excellence' by
the Central Ministry of Commerce and Trade and the Kannur airport is likely to facilitate export
trade for the export focused industrial clusters
• Major Urban nodes is Kannur and sea port at Azhikkal. The economic drivers are primarily
agricultural and fishing zone, hence untapped potential exists in agro processing & tourism
sector. Calicut is also a key urban node which is a key target market
• Major products in the region are – cashew, coffee, floriculture, spices, coir products, plywood,
handloom, silk and marine products

Project Parameters 165

Parameter Description

Land • Industrial park – 612 acres

(Proposed
• Airport based SEZ – 300 acres
landside
breakup) • Real Estate – 55 acres

Raw Materials Site access road, power (110 KV substation at Kannur airport), water supply
and Utilities (proposed to be sourced from Pazhassi dam)

Cost of the The project cost is estimated taking into account various expenditures on
project (INR) account of the following components. The total cost is estimated at INR 900 Cr*
(~USD 140 Mn)
• Cost of Land: INR 700 CR
• Land Development Cost: INR 80 Cr
• Utilities Cost: INR 70 Cr
• Administrative Block: INR 5 Cr
• Contingency: INR 8 Cr
• Preliminary and Preoperative Expenses: INR 6 Cr
• Margin money for Working Capital: INR 1 Cr
• Interest during Construction: INR 30 Cr

Means of • Debt-equity ratio of 1.5:1 is assumed.

Finance • Considering this as regional/industrial development project government
support may be availed in terms of Grants/VGF etc.

Feasibility study for landside development of Kannur Aerotropolis by INKEL and Jones Lang, * Assumptions considering inflation in last 5 years
165

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Parameter Description

Expected • The pre-tax project IRR is estimated at 16.67%

Sales Turnover

Competitive Landscape 166

• Kannur region is home to many industrial sectors such as textile, food & agro, wood and paper
related etc. An industrial park that shall subsume the combined potential of these sectors will
be first of its kind in the district and north Malabar region itself.
• Due to dearth of a comprehensive industrial setup in the district, major development is poised
to come in with the proposed Aerotropolis.

Conclusion
The proposed Greenfield Aerotropolis in Kannur, Kerala is thus envisaged to be unique development
with capability to change the socio-economic scenario of its primary hinterland. With a vision to
capitalize the untapped industrial and tourism potential of North Malabar region, the subject project
can emerge as a definite winner in creating a large number employment opportunity and making
Kannur a 'Destination' of its own.
The feasibility study conducted by INKEL proposed 2 development options for the project namely:
1. Integrated with development plan of Kannur International airport and bid out on BOT mode
2. Treated as separated entities, wherein Aerotropolis will be bid out on BOT mode
However, various models can be worked out with the government

Aquaculture and Seafood Exports

Sector/Industry – Infrastructure
Project Type – Mega
Estimated Project Cost – INR 10 Crore (excluding land lease cost)
Proposed Location – Vizhinjam Port

166
Feasibility study for landside development of Kannur Aerotropolis by INKEL and Jones Lang
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 Study on Investment Potential in Kerala

Project Description 167

• The proposed project is to build an Aquaculture and Seafood export facility at an area of 20
acres of government land earmarked for fishing harbor and seafood park (with processing and
cold storage) at Vizhinjam Port. The aim of this project is to boost the aquaculture industry and
seafood export in Kerala to enhance the food security, creation of employment opportunities,
generation of income and surplus for trade in fish and fishery products.
• The Aquaculture scenario in Kerala is mostly dominated by shrimp culture especially in coastal
area, and recorded rapid progression in production and makes a significant contribution to the
foreign exchange earnings through exports. The diversification of production by introducing
new commercial species, adoption of new technologies and introduction of seafood export
units for value added products shall help open a new set of opportunities in the fisheries sector.
• Vizhinjam is a major fishing village in Thiruvananthapuram and proximity of Vizhinjam Port to
major international sea route and East West shipping region puts forth tremendous potential
towards development of ornamental fish trade and aquaculture of Vannamei, Tiger Shrimps
and Bamboo Shrimps.
• Kerala is yet to tap the burgeoning prospects of aquaculture. Empowerment of fish farmers in
the state can make them aware of the potential of diversification of aquaculture practices such
as integrated farming and cage culture.

Market Scenario 168

• The coast of Kerala constitutes approximately 10 percent of India’s total coastline. Among
maritime states in India, Kerala ranks second in marine fish production. In 2015-16, total fish
production in the state stood at 0.68 million tonnes. Kochi Port exported 1,55,989 tons of
marine cargo worth INR 4,447 crore.
• Trivandrum port saw 3665 tons of marine exports worth 186 Cr. Efforts are underway to culture
fish other than shrimps that have huge potential for export and local consumption like cobia,
pompano, groupers and sea bass.
• Kerala registered an 8% increase in its total marine fish catch over the previous year producing
5.23 lakh tonnes in 2016. Kerala has the highest share (49%) of marine fish landings in South-
west region
• Seafood exports from the country is expected to exceed USD 6 billion in the FY17 driven largely
by demand for Indian shrimps in the global market. In 2016-17, India exported USD 5.78 billion
(~INR 37,871 crore) worth of marine products which saw a 23% increase from 2015-16 during
which India has seafood worth USD 4.7 billion (~INR 30,420 crore). Cultured shrimps account

167
Vizhinjam Seaport Project: Land Acquisition Hurdle Solved,21 April 2016, http://entecity.com/news/vizhinjam-seaport-project-land-acquisition-
hurdle-solved,accessed 24.07.2017; Report of India Brand Equity Foundation, April 2017, https://www.ibef.org/states/kerala.aspx, accessed
24.07.2017; http://shodhganga.inflibnet.ac.in/bitstream/10603/111440/4/13_chapter3.pdf; Seafood exports at all-time high, The Hindu,11 June
2017, http://www.thehindu.com/todays-paper/tp-national/tp-kerala/seafood-exports-at-all-time-high/article18958985.ece; India’s Seafood
Export at all-time High in 2016-17:MPEDA, Press Information Bureau Government of India Ministry of Commerce & Industry, 07.06.2017,
http://pib.nic.in/newsite/PrintRelease.aspx?relid=164454, accessed: 25.07.2017; Seafood exports could grow 20% in FY17, Business Standard, 06
Aug 2016, http://www.business-standard.com/article/markets/seafood-exports-could-grow-20-in-fy17-116081000007_1.html, accessed on
25.07.2017
168
http://economictimes.indiatimes.com/articleshow/59787946.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst,
http://economictimes.indiatimes.com/markets/expert-view/india-has-increased-seafood-exports-and-there-is-no-shortfall-in-shrimp-exports-a-
indra-kumar-cmd-avanti-feeds/articleshow/59646611.cms, http://www.icar.org.in/en/node/12770,
http://pib.nic.in/newsite/PrintRelease.aspx?relid=164454, http://economictimes.indiatimes.com/markets/commodities/kerala-widens-fish-
export-platter/articleshow/50800302.cms
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for about 70% of the value of the exports and there has been increased interest in the farming
of the shrimps, particularly the Vannamei variety, which has most demand in the market now.
• India being one of the top producers of the seafood, huge market opportunities are there in
US, EU, UAE, China and South East Asian countries. Export markets have seen a growth of
20% in shrimp demand
• USA continued to be the largest market in value terms whereas South East Asia stands first in
quantity. South East Asia, with a share of 30% in dollar terms, remained the second largest
destination for India’s seafood products. It was followed by the EU (17.98%), Japan (6.83%),
West Asia (4.78%), China (3.50%), and other countries (7.03%). Overall, exports to South East
Asia increased by 47.41% in quantity, 52.84% in rupee value, and 49.90% in dollar earnings.
Besides frozen shrimp and frozen fish, India’s other major seafood product was frozen squid,
which recorded a growth of 21.50 %, 59.44 % and 57 % in terms of quantity, rupee value and
dollar earnings, respectively.

Project Parameters

Parameter Description

Capacity • Aquaculture capacity, a minimum of 1000 MT fish/annum

• Approx. cold storage (freezer) facility of 5 MT per day
Land • An area of 20 acres of at Vizhinjam Port is available for lease with
Vizhinjam International Seaport Ltd
Raw Materials • Aquaculture cages
and Utilities • Aquaculture blower
• Set-up for hatcheries
• Storing area for seafood
• Pre-processing plant / Peeling shed
• Cold storage - Freezer, containers
• Packaging facility
Employment • Estimated employment opportunity of ~500 direct and indirect jobs
Potential
Cost of the • Cost of the project excluding land cost ~ INR 7-10 Cr (~USD 2 Mn)
project (INR) • Estimated cost for plant and machinery for an aquaculture capacity of
1000 MT is estimated at INR 2 Cr
• Estimated cost for cold storage and processing facility is INR 5 Cr
• Misc. cost – 1-3 Cr
Means of The proposed debt-equity ratio for the project is 70:30
Finance Many government schemes can be availed under:
• Export promotion council / commodity boards
• Apex trade bodies recognized under the EXIM policy of Government of
India and other apex bodies recognized for this purpose
• MPEDA/Rajiv Gandhi Centre for Aquaculture funding provisions

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Competitive Landscape
• Vizag, Kochi, Kolkata, Pipavav and Jawaharlal Nehru Port (JNP) were major ports that handled
the marine cargo during 2016-17.
• Seafood exports from the country had declined in 2015-16 with the slowdown in global
economies and better supply from competing countries such as Thailand and Vietnam.
• States such as Andhra Pradesh and Odisha have opened up opportunities for aquaculture
farmers to bring more areas under shrimp production. Gujarat has added aquaculture ponds
in a big way.
• According to the available estimates of potential fishery resources of the West Coast,
particularly in the south-west coasts, Kerala possesses the richest fishing grounds in the
region. Seafood export from Kerala is mainly channeled through the Kochi port.

Key Players
Kochi Port, Vizag, Kolkata, Pipavav, JNP, Krishnapatnam, Tuticorin and Chennai ports, KINFRA
Seafood Park, Aroor, Many small-medium scale seafood exporters exists in Vizhinjam and Kochi
regions

Conclusion
• The vast fishery resources existing in Kerala need to be exploited properly and carefully
adopting scientific fish farming to enhance productivity.
• Development of an aquaculture and a seafood Park at Vizhinjam would significantly value add
the seafood produce of the local fishermen fraternity and economically back boost them.
Implementation of scientific method in aquaculture confers many economic benefit on the
society in the form of employment and income generation, production of food, trade surplus
and foreign exchange earnings etc.
• Aquaculture has emerged one of the fastest growing food production activities in the world.
This facility can help disseminate the vast potential of the fisheries and aquaculture sector and
offer numerous investment opportunities in this industry.

Integrated Manufacturing Cluster (IMC)

Sector/Industry – Infrastructure
Project Type – Mega
Estimated Project Cost – > INR 10000 Crore
Proposed Location – Cochin to Palakkad

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Project Description 169

• It is proposed to establish an Integrated Manufacturing Cluster (IMC) in the proposed Kochi-
Bengaluru Industrial Corridor from Kochi to Palakkad. The project aims to facilitate investment,
foster innovation, enhance skill development, and build best-in-class manufacturing
infrastructure. The proposed industrial corridor passes through Palakkad and Coimbatore to
link with the Chennai-Bengaluru industrial corridor
• The length of the corridor in Kerala would be nearly 160 Km. the Integrated Manufacturing
Cluster that will come along the Corridor will boost the manufacturing activities including
Electronics, IT, Biotechnology, Life Sciences, etc. in the districts of Ernakulam, Thrissur,
Malappuram and Palakkad.
• The clusters shall be equipped with world-class infrastructure, road and rail connectivity for
freight movement to and from ports and logistics hubs, served by reliable power and quality
social infrastructure. They will provide a globally competitive environment conducive for
businesses.
• The Kochi Bengaluru Industrial Corridor proposes to address the infrastructure bottlenecks
through a holistic approach while benefiting from the inherent strengths and competitiveness
of each of the KBIC states. Accordingly high impact/ market driven integrated manufacturing
clusters are proposed to be developed, at strategic locations, within the corridor to provide
transparent and investment friendly facility regimes.
• Such a cluster concept will enable the R&D resources already existing at Trivandrum to be
optimally used, to generate more project and business ideas, setting off more virtuous circles.
Industry-specific clusters will be set up under central schemes like the Electronic
Manufacturing Cluster Scheme of the Department of Electronics & IT and the Modified
Industrial Infrastructure Upgradation Scheme of Ministry of Commerce & Industry. The Central
Government is preparing a National Plan for Manufacturing Clusters. The Plan aims to bring
about convergence in development of industrial areas by the central and state governments
so as to bring about optimal utilization of resources

Market Scenario 170

• The India Brand Equity Foundation (IBEF) states that as of July 2016, Kerala had 29 SEZs with
formal approval and 25 notified SEZs. A cyber-park, spread over a 68-acre campus, is being
developed in Kozhikode.
• Kerala has been promoting knowledge-based industries such as IT/ITeS, computer hardware
and biotechnology. It is the first state having a technology park with CMMI level 4 quality
certification and a world-class IT campus in Thiruvananthapuram.
• The Industrial Development & Economic Growth in Kerala's gross state domestic product
(GSDP) was at USD 68.5 billion over 2014-15 and net state domestic product (NSDP) was at
USD 59.70 billion over 2014-15.

169
1. Article on Manufacturing Sector in India,India Brand Equity Foundation(IBEF),July 2017
Webpage:https://www.ibef.org/industry/manufacturing-sector-india.aspx, accessed : 20 July 2017, 2. Article "Government preparing national plan
for manufacturing clusters",The Economics Times, 17 July 2017, webpage:
http://economictimes.indiatimes.com/news/economy/policy/government-preparing-national-plan-for-manufacturing-
clusters/articleshow/59633730.cms; accessed: 19 July 2017 , 3.Report on Kerala Industrial & Commercial Policy Amended - 2015, Website:
http://www.ksidc.org/userfiles/industrial___commercial_policy_2015___approved___may_6__2015-old16-9-2015.pdf, accessed:20 July 2017
170
http://www.ksidc.org/userfiles/selection_of_consultant_fo_implementation_of_common_application_form_and_online_clearance_mechanism
_in_the_state.pdf, IBEF
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 Study on Investment Potential in Kerala

• Manufacturing has emerged as one of the high growth sectors in India. India’s manufacturing
sector has the potential to touch USD 1 trillion by 2025. There is potential for the sector to
account for 25-30 per cent of the country’s GDP and create up to 90 million domestic jobs by
2025.
• Business conditions in the Indian manufacturing sector continue to remain positive. India has
become one of the most attractive destinations for investments in the manufacturing sector.
• Cumulative FDI inflows into the electronics sector, including computer hardware and software,
increased at a CAGR of 13.56 per cent, with the value increasing from USD 9.8 billion in FY10
to USD 21.02 billion in FY16.
• Demand growth, supply advantages, and policy support have been instrumental in attracting
FDI. India has grown as a global manufacturing hub due to its cost competitiveness, trained
labor and due to the positive government plans.
• Setting up of Industrial projects in Kerala has become a hassle free operation since
Government of Kerala has introduced the Single Window Clearance System in the State.
Currently KSIDC is in the process of implementing a Common Application Form in the state

Project Parameters

Parameter Description

Land
Around 1000 acres of land in the possession of central and state PSUs in the
region remains unutilized. A 50 kms band with NH 544 as the spine and a length
of 160 kms has been proposed within the State for establishing the Industrial
Corridor.
Another 2000 acres of land can be acquired along the corridor region, and this
was announced in the State Budget 2016-17. This will be in different nodes of 50
to 500 acres, situated on either side of NH-66.
Raw Materials • Infrastructure augmentation
and Utilities • Power Supply
• Industrial Grade Water Supply
• Solid Waste Management services by ULBs
• Connecting roads
Employment Targets to create gainful employment opportunities with more than 0.1 million
Potential direct employment and at least 0.3 million indirect employment.

Cost of the
The total cost estimated for the Integrated Manufacturing Cluster is INR 10,000
project (INR)
Cr (~USD 1550 Mn).
For infrastructure activity under PPP, viability gap funding would be available. It
is proposed to develop the project on Design, Build, Finance, Operate and
Transfer (DBFOT) basis.

Means of
The project is proposed to be implemented in PPP mode. Government of Kerala
Finance
will provide the land required for establishing the Cluster. An SPV will be formed

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Parameter Description

involving Government agencies like KSIDC, KINFRA, DIC, etc. to this extent. Land
will be the equity of Government of Kerala in the project. All necessary
clearances will also be facilitated by the Government.
Suggested particulars under means of finance are as follows:
• Government Grant – 30%
• Equity from Government Agencies and from constituent units – 40%
• Term Loan – 30%

Competitive Landscape 171

• KBIC seeks to optimise the present economic and employment potential of the region,
stimulate investments particularly in the manufacturing, agro-processing, services and export
oriented units and promote overall economic development of the area through creation of high
standard infrastructure and an enabling pro-business environment
• Central government has proposed various initiatives to give a push to the Make in India
campaign and the National Investment and Manufacturing Zone (NIMZ) in Prakasam district in
Andhra Pradesh is one such example. Once the NIMZ becomes a reality, it is estimated to
attract investments to the tune of INR 437000 crore, generate jobs to 3 lakh people and earn
foreign exchange to the tune of INR 24,000 crore
• With the onset of Sagarmala Programme, many ports including ports in Kerala have been
identified across port modernization & new port development, port connectivity enhancement,
port-linked industrialization and coastal community development for phase wise
implementation over the period 2015 to 2035. This increases the potential for a manufacturing
cluster in the state.
Key Players
Manufacturing cluster Chennai, Hyderabad; Integrated MSME clusters, Tamil Nadu; VCIC Corridor

Conclusion
• By introducing a cluster-based approach in the state, it can further strengthen the
competitiveness of the sectors through leveraging the economies of scale. Support of the state
government of Kerala for land acquisition required for establishing the cluster shall be
provided. An SPV will be formed involving Government agencies like KSIDC, KINFRA, DIC, etc.
to this extent. All necessary clearances will also be facilitated by the Government. An
integrated approach involving industrialists, Government and the society is crucial for
achieving faster industrial development of Kerala and the same will be demonstrated through
this manufacturing cluster.

171
http://pib.nic.in/newsite/PrintRelease.aspx?relid=159037, http://www.thehindu.com/news/national/andhra-pradesh/nimz-works-gain-pace-in-
prakasam-district/article8030363.ece
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Petrochemical Park
Sector/Industry – Petrochemical
Project Type – Mega Project
Estimated Project Cost – INR 1864 Crore
Proposed Location – Ambalamugal, Kochi

Project Description 172

• KINFRA proposes to develop a Petrochemical Park of international standards at Ambalamugal,
in Ernakulam district of Kerala. The project is intended to create an Industrial Park with all
modern facilities exclusive for the Petrochemical Industry.
• The Petrochemical and Pharma Park is proposed in 600 acres of FACT land in Ambalamugal,
to be transferred to KINFRA. This land already has a large refinery, fertiliser and chemical
factories, LNG Terminal & Gas Pipeline Network being established, a Bulk Terminal and
International Container Transhipment Terminal (ICTT). The proposal assumes significance in
view of the expansion proposal of BPCL, nearness to the Port and Natural Gas infrastructure
at the location.
• Petrochemicals play a vital role in economic development and growth of a country. The growth
of this industry is closely linked to economic growth of a country. Petrochemicals are
considered as enablers for growth of other sectors of the society. They are derived from
various chemical compounds, mainly hydrocarbons. These hydrocarbons are derived from
crude oil and natural gas.
• The basic petrochemicals are synthetic fibres, polymers, elastomers, synthetic detergent
intermediates, performance plastics, fibre intermediates, olefins and aromatics.
Market Scenario 173
• The capacity of the Kochi refinery of Bharat Petroleum Corporation is being expanded from 9.5
million tonnes a year to 15.5 million tonnes. The expanded refinery will produce 5 lakh tonnes
of propylene annually, the basic raw material for the petrochemicals units3.
• India’s production in 2014-15 has been 11,594 thousand MT for major petrochemicals
production with polymer constituting around 57%. Indian export of chemicals and
petrochemicals stood at US$ 27.43 billion in 2014-15 and constituted 9.4% towards total
export.4 Petrochemicals account for 30 per cent of the country’s US dollars 120-billion chemical
industry in 2016, which is likely to grow about 11 per cent in the coming years to hit US$250
billion by 20205.
• The Indian Government allows 100% FDI in chemicals sector and the domestic petrochemical
industry is in the process of investing over USD 25 billion.

172
http://www.thehindu.com/todays-paper/tp-national/tp-kerala/petrochemical-majors-plan-units-in-kochi/article4958950.ece;
http://www.makeinindia.com/article/-/v/make-in-india-sector-survey-chemicals;
173
http://www.newindianexpress.com/cities/kochi/2016/oct/23/kochi-to-turn-petrochemical-hub-1531065.htm,
http://www.thehindu.com/todays-paper/tp-national/tp-kerala/petrochemical-majors-plan-units-in-kochi/article4958950.ece;
http://www.makeinindia.com/article/-/v/make-in-india-sector-survey-chemicals;
http://www.newindianexpress.com/cities/kochi/2016/oct/23/kochi-to-turn-petrochemical-hub-1531065.htm; file:///D:/D/2017/KSIDC/Chemical-
and-Petrochemical-Industry-in-India.pdf
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Project Parameters

Parameter Description

Capacity Common Infrastructure Facilities

• Internal Roads, culverts & drainage
• Water Treatment Plant
• Water supply and distribution, recycling system for irrigation & flushing
• Dedicated Sub-station & Power distribution System
• Street lighting
• Telecom & communication systems
• Sewerage network
• Common Effluent Treatment Plant (CETP) for Industrial Wastewater
treatment; also
• Industrial Wastewater conveyance & recycling
• Rainwater harvesting
• Greenery
• Social Amenities
• Canteen
• Clinic
• Bank / ATM
• Gymnasium
• Sports Courts
• Logistics movement support
Land
• The proposed Petrochemical is to be established in an area of 600 acres
at Ambalamugal, Kochi. Out of the total area of 600 acres, it is planned
to earmark 450 acres for Petrochemical Industries and balance land of
150 acres for Pharmaceutical sector. The land is currently in possession
of FACT Ltd which will be transferred to KINFRA.
• Land site survey is in progress.
Raw Materials Kerala Industrial Infrastructure Development Corporation KINFRA will develop
and Utilities all basic Infrastructure facilities for the park
Employment The proposed part is poised to offer employment opportunities in tune of 300
Potential plus direct jobs and more than 1000 indirect jobs

Cost of the • Land cost - INR 1,264 crore

project (INR) • Project cost - INR 600 crore
• Total cost of the project is INR 1864 crore (~USD 300 Mn)
Means of Kerala Infrastructure Investment Fund Board (KIIFB) will be funding the entire
Finance INR 1,864 crore

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Competitive Landscape 174

• Deepak Petrochemicals, Kothari Petrochemicals, Hindustan Organic Chemicals, Mareena
Chemicals and SK Global Chemicals are few of the players operating in this space.
• With the emphasis on ‘Make in India’ and the many investor summits organized by different
states, the interest in this sector is brimming.
Key Players
• Indian Petrochemicals Corporation Limited (IPCL), Reliance Industries Limited (RIL) and Oil and
Natural Gas Corporation (ONGC) in Gujarat.
• Petroleum, Chemical & Petrochemical Investment Region (PCPIR) - a specifically delineated
Investment Region being developed in n Andhra Pradesh, Gujarat, Odisha and Tamil Nadu
Conclusion
• The proposed Petrochemicals Park offers facilities like Single Window Clearance facility,
complete Eco friendly infrastructure, shared common infrastructure facilities and land in
parcels and built up spaces available for establishment of units on lease basis. The Department
of Chemicals and Petrochemicals, GoI, has also launched some schemes to promote this sector
like ‘Setting up of centres for Excellence in Petrochemicals Sector’. This Petrochemicals Park
will create more employment in the state and would accommodate about 20 small and medium
scale companies¹. This state of the art facility welcomes all investment opportunities to develop
their industries here and reap the benefits of it.

Kerala Maritime Cluster

Sector/Industry – Infrastructure
Project Type – Mega
Estimated Project Cost – INR 3500 Crore
Proposed Location – Cochin Port (Wellington Island)

Project Description
• The maritime gateway to peninsular India, Cochin is the fastest growing logistic centre
emerging in to a major International trans-shipment terminal. An all-weather natural Port, and
located strategically close to the busiest international sea routes Cochin is promoting a major
liquid terminal, bulk terminal and maritime industries in its port based SEZs. Additionally due
to its proximity to the maritime highway, it is proposed to set up a Maritime Cluster in Cochin
adjoining to the port area.
• The proposed cluster is poised to enhance the strength and development of maritime sector
and in effect make the port more accessible and competent. Maritime Cluster can be broadly
defined as a group of organisations, institutions, business and other industry players in the
maritime sector that are geographically located close to each other and enjoy positive synergy
between their activities. In India, most of the existing maritime clusters have been developed
in an un-planned manner which has led to highly fragment maritime industry and sub-optimal
growth over the years.

174
http://www.thehindu.com/news/cities/Kochi/petrochemical-park-for-kochi/article6992929.ece
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 Study on Investment Potential in Kerala

• Kerala, especially Kochi, has already had an important presence in the maritime field. However,
the different stake holders are scattered and there is no common link connecting the
stakeholders. Because of this reason, the potential of the maritime activity in the state is not
fully explored. The cluster is to be government by a well-tailored maritime policy to create a
common platform for all the stake holders functioning in and around Kochi port ranging from
manufacturers, logistics, ancillary service providers, universities etc. Such a proposition shall
foster the maritime manufacturing potential of the state and transform the maritime dreams
of the state.
• The major stakeholders comprises of Governments of Central & State, Shipyards, State and
Central institutions, boat builders, ancillary equipment manufacturers, fishermen, logistics,
maritime lawyers, insurance, tourism, financiers, Government, tax laws, and many more. At
present all the stakeholders are scattered and are disconnected. All these elements need to be
consolidated and streamlined into a well-oiled machinery to reap the maximum reward for the
State in the maritime sector.
• In cochin, existing cluster consists of cochin shipyard - ship repair and ship building facility,
container cargo, commodities trading center, LNG Terminal Jetty, cruise terminal,
International container transhipment terminal, Bolghatty Resort, Government bodies like,
Kerala State Maritime Development Corporation, Kerala State shipping & Inland Navigation
Corporation, private shipyards, institutes like Kerala Maritime University. The scope of this
project is to develop and enhance the existing maritime cluster at par with leading international
maritime centers and develop a policy guideline for functioning of the maritime cluster
• The proposed project of development of a maritime cluster is Kochi consists of
development/enhancement of following components of the existing cluster:
• Core Services (Shipping and Port related) - International Ship Repair Terminal, Boat
Manufacturing & Repair facility, Port Modernization, Ship Management Services
• Finance and Regulatory Services - Maritime finance & insurance services
• Others – Port led Industrial park, Cruise Tourism, Water sport activities at Marina and
Maritime Museum

Market Scenario 175

• India port infrastructure market is projected to grow at a CAGR of over 9% during 2016-2025,
on account of heavy funding pertaining to development of ports and related infrastructure such
as connecting roads, railways and Coastal Economic Zones. Government’s focus on ease of
doing business such as allowing 100% FDI under automatic route for projects related to
construction and maintenance of ports and harbors provides a promising outlook for future
development and growth of port infrastructure market in India.
• Cochin port currently handles ~25 MTPA of cargo out of which liquid cargo- POL, LNG and LPG
forms the major chunk while other commodities including containers, fertilizers, coking coal,
etc. form a small share of the total traffic. The total traffic at Cochin port is expected to increase
to 41-43 MTPA by 2025 and 52-60 MTPA by 2035 driven primarily by the expansion of the BPCL
refinery, LNG and LPG imports and growth in container volumes.
• The Kerala Coastal Economic Zone (CEZ) under the National Perspective plan of the Sagarmala
Programme is envisaged to provide a thrust to the traditional stronghold industries in the state

175
Cochin Port Trust, http://sagarmala.gov.in/sites/default/files/1058476289DraftPerspectivePlans%20ofCEZones.pdf,
http://pib.nic.in/newsite/PrintRelease.aspx?relid=154922 , http://www.oceanblue.in/kochi-international-marinas.html
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 Study on Investment Potential in Kerala

which have a significant EXIM orientation and linkages with the port. It aims to provide an
impetus to the economy of the state, taking into account the favourable conditions it enjoys
both as a location for light manufacturing and as a tourist destination.
• Kerala has a coastline of around 580 km. The CEZ in the state of Kerala comprises nine coastal
districts of the state Kasaragod, Kannur, Kozhikode, Malappuram, Thrissur, Ernakulam,
Alappuzha, Kollam, Thiruvanthapuram.
• The potential for developing a maritime cluster with export oriented industrial clusters can be
utilized by providing greater export incentives to the industry, improvement of logistics
infrastructure, and simplification of export processes including faster documentation and
custom clearance
• According to Ministry of Shipping, India accounts for only 0.45 per cent of the global
shipbuilding market in 2016 and could target 3–4 mn DWT of the global shipbuilding capacity
by 2025. With the recent policies & initiatives by the Government the unfavorable cost
differential faced by the Indian shipyards is expected to reduce. Subsequently, opportunity in
defence sector, growth in coastal shipping and replacement of existing vessel fleet is expected
to drive growth of the shipbuilding industry in India.
• For port led industrialization, huge potential has been identified for Kerala CEZ in two potential
industries namely furniture manufacturing/processing and passenger cruise tourism.
• Demand for furniture in India surged at 12 per cent annual rate between 2007 and 2014
creating a USD 25 billion market
• Kerala currently has major furniture clusters in Taliparamba, Malapuram and
Ernakulam and minor furniture clusters in Kollam and Thrissur.
• Kerala, due to its location and already established ecosystem, is best suited for a port-
based or port-proximate furniture manufacturing cluster.
• Kochi is a popular tourist destination for foreigners and domestic tourists alike. It is
already a port of call for cruises connecting South Asia and Middle East and North
Africa (MENA). Kochi has the highest relative share approx. 31 per cent as ‘port of call’
among Indian ports. This reinforces Kochi’s popularity as a tourist destination amongst
cruise liners.
• Kochi port saw a CAGR of 37% increase in average cruise passengers visiting the port
in 2014-16 period with ~82000 average number of cruise passengers in 2016-17. The
number of cruise ships that visited increased from 39 in 2014-15 to 46 in 2016-17 with
a CAGR of 9%.
• Kochi port being located on the south-western coast, is an ideal location to be linked
to domestic cruise circuits that connect Kochi, Mangalore, Goa and Mumbai offering
cultural and heritage, religious as well as leisure destinations
• The existing "Kochi International Marina" located on the eastern coast of Bolgatty Island
adjoining the Bolgatty Palace is a full-fledged marina of international standards in India. The
marina is close to the international maritime route at the south west coast of the Indian
Peninsula, with favorable conditions and minimum tidal variations throughout the year. By
providing adequate facilities for the yacht owners and their crews, with various water sports
activities in place, this marina has huge potential to augment the tourist flow to Kerala
• To boost the maritime operations in the state, Cochin Shipyard Limited has chalked up huge
expansion plans with a new 310 meter dry which will help them handle ships with much larger
capacities and will invest INR 1800 Cr for the project
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Project Parameters 176

Parameter Description

Capacity Port Modernization

• Setting up of fertiliser bagging facility at Kochi port
• Setting up of food grain import terminal at Kochi port
• Setting up of edible oil terminal at Kochi port
International Ship Repair Facility
• Facility for repair of ships of capacity up to 25000 DWT, with Ship Lift
System.
Port-led Industrial Cluster
• Ernakulam could be developed as a furniture manufacturing hub and
linked to Kochi port for evacuation.
• Modernization of existing boat manufacturing facilities
Cruise Tourism and Marina water sports
• Upgrading infrastructures at Ernakulam Wharf for cruise berthing
facilities:
• Construction of Cruise Terminal building
• Development of berth and backup area
• Upgradation of existing International Marina with water sports facilities
such as Jet Ski, Towables, Bumper boats and Parasail Boats
Maritime Museum
• Enhancement of existing maritime museum to create a Maritime
Experiential Museum
Land • International Ship Repair Facility - Around 42 acres of land area and 37
acres of water area is given for lease to Cochin Shipyard Limited
• Port-led Industrial Cluster - Approx. ~ 180 acres of land is available in
proximity of Cochin Port Trust Wellington Island
Employment The industrial cluster could also generate around 1 lakh jobs in the next 10
Potential years

Cost of the
The total project cost is estimated at: ~ INR 3500 Cr (~ USD 540 Mn)
project (INR)
• Port Modernization: ~INR 200 Cr
• International Ship Repair Facility: ~ INR 970 Cr
• Port-led Industrial Cluster: ~ INR 2000 Cr
• Cruise Tourism: ~ INR 20 Cr
• Maritime Museum: ~ INR 10 Cr
• Marina Watersports activities: ~ INR 20 Cr
• Others – Ship Management Services, Finance and Insurance Services,
Seafood export facility, Policy Guidelines Consultancy: ~ INR 250-300 Cr
Means of The cost of the project is approx. INR 3500 Cr and is proposed to be financed as
Finance Promoter’s contribution as equity 1500 Crore and Term Loan from Financial
Institutions 2000 Cr. The project may be implemented by relevant Central

176
http://sagarmala.gov.in/sites/default/files/1058476289DraftPerspectivePlans%20ofCEZones.pdf
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Parameter Description

Ministries, State Governments, Ports and other agencies primarily through the
private or PPP mode.

Competitive Landscape 177

• Proposed Maritime cluster in Kochi will be first of its kind in Kerala.
• Other developing regions such as Vizhinjam, Poovar and Azhikkal will see development of
similar facilities in Ship Building, Cruise tourism, Ship Management and ancillary services.
• Ministry of Shipping under the Sagarmala Programme plans to develop 14 Coastal Economic
Zones in India targeting major industrial clusters in each zone
Key Players
• Mumbai and Chennai have established themselves as centers of maritime trade in India
• Other prominent proposed future maritime clusters include Ennore (Tamil Nadu) and
Saurashtra (Gujarat)

Conclusion
• Maritime clusters are to be one of focal points for economic development along India’s
coastline and the Sagarmala Programme of the Ministry of Shipping is constantly striving to
develop such clusters across major ports in India
• The opportunities in the maritime sector with the onset of the proposed maritime cluster is
huge. Kochi has an important presence in the maritime field. With the onset of a common link
connecting all the stakeholders under the cluster, immense potential of maritime activity in the
State is yet to unfold.
• In the ports sector, PPP has been primarily observed in segments, such as operation and
management of ports, construction of deep water ports, container terminals, shipping yards
and bulk ports. India’s “Maritime Agenda 2010-2020,” which replaced the National Maritime
Development Programme (NMDP), targets to grow India’s port handling capacity to 3.1 billion
ton by 2020. The private sector is expected to play a key role in achieving this ambitious target.
• This project aims to attract investments in light of modernizing port infrastructure facilities,
ship building and repair facilities, ancillary services, development of industrial clusters etc.
leading to robust development of the maritime ecosystem in the state

Small Hydro Power

Sector/Industry – Power
Project Type – Mega

177
http://pib.nic.in/newsite/PrintRelease.aspx?relid=149411
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Estimated Project Cost – INR 850 Cr (Multiple projects)

Proposed Location – Multiple Locations

Project Description 178

• The proposed project comprises construction and operation of 12 Small Hydro Projects (SHP)
across different locations in Kerala under Kerala State Electricity Board (KSEB). These projects
are planned to be developed in IPP mode. The combined capacity of 59 MW plants will
generate 133.5 GWh annually. SHP projects normally do not encounter the problems
associated with large hydel projects of deforestation and resettlement. The projects have
potential to meet power requirements of remote and isolated areas. These factors make small
hydel as one of the most attractive renewable source of grid quality power generation.
Hydropower is a proven, mature, predictable, highest conversion efficiency and cost
competitive RE source as it requires relatively high initial investment, but has the advantage
of very low operational costs and a long life span, quick start and stop. Hydropower plays a
key role in power systems due to its flexibility and reliability (peaking, ancillary services) and
in the present scenario, its importance has further increased because of the large scale addition
of variable renewable energy power in the form of solar and wind energy in the power system.
The proposed hydropower projects are Greenfield projects and its lifetime is 30 years. The
projects are expected to operate at a PLF of 25 to 50 per cent.
• The details of individual plants, their location, installed capacity and head are given below.
# Name of scheme River/River basin Location (District) Installed
Capacity (in
MW)
1 Nakkayam Muvattupuzha/ Kiriplavuthodu Idukki 12
2 Kallar Kallar River/ Vamanpuram Trivandrum 4
3 Thommankuthu Muvattupuzha/ Kannadiar Idukki 3
4 Wanchiyam Wanchiam/ Valapatianam Kannur 3
5 Kanjirakolly Udumpanpuzha/ Valapatianam Kannur 2.7
6 Bhavalipuzha II Bhavalipuzha/ Valapattanam Kannur 7.5
7 Bhavalipuzha IV Bhavalipuzha/ Valapattanam Kannur 3.5
8 Pappanoor Kallada/ Kallada Kollam 1.5

9 Ambankadavu Ambankadavethode/ Palakkad 2.4

Bharathapuzha

10 Karlmpuzha Karlmpuzha/ Bharathapuzha Palakkad 4.5

11 Palagappandi Palagapandi/ Bharathapuzha Palakkad 4

SHES

12 Chinnaparambhuth Chinnaparambhuthodu and Palakkad 11

odu Mandapotty River

178
Project Design Document Form For CDM Project Activities, Gujarat, KSEB
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Market Scenario 179

• In 2016 of the total power generation installed capacity of 3 lakh MW in India, hydropower
contributes about 15.37 per cent which includes large hydro and small hydro power projects.
• The estimated potential of a SHP project (up to 25 MW station capacity) in India is of about
20,000 MW, of which about 4341 MW has been exploited. A target of adding about 5000 MW
by 2022 is kept by the Ministry of New & Renewable Energy (MNRE) by installing SHPs.
• Small Hydropower projects can provide a solution for the energy problem in rural, remote and
hilly areas where extension of grid system is comparatively uneconomical.
• Kerala depends on drawing power from Central pool to meet its peak demand that some time
leads to grid failures in peak demand seasons. SHP can be a potential option to build in-house
capacity in the state
• The estimated potential for power generation from small hydro power projects in the country
is about 20,000 MW of which about 4341 MW has been exploited.
• Keeping in line with Government of India policy, 24 states have announced policies for inviting
private sector investment. About 416 Small Hydro Projects of about 2389 MW capacity have
been setup till January 2017.
• Government of Kerala (GoK) has been supporting development of small hydro power projects
in the state since 1992. It also has a ‘Kerala Small Hydro Policy 2012’ to support investments
in this sector.
• Kerala has 13th largest potential for small hydro projects in the country compared to the other
states. In February 2016, GoK issued a joint statement with GoI to ensure a 24 x 7 supply of
power to all. Hydro power is slated to add about 2000 MW to the required capacity in the
coming years.
• As per a survey carried out by ANERT (Agency for Non-Conventional Energy and Rural
Technology) in 13 districts of Kerala to determine the estimated SHP power potential in the
state, Idukki has the highest number of sites with an estimated power potential of 279.95 MW.
Based on this survey, ANERT initiated cluster mode development of 14 SHP sites in Peravoor
block of Kannur district with the support of NABARD.
• MNRE has launched many initiatives to promote development of SHP in a planned manner
and improve reliability and quality of the project by giving various physical and financial
incentives, investments have been attracted in commercial SHP projects apart from subsidizing
state governments to set up SHPs.

Small Hydro Power Program, MNRE, http://mnre.gov.in/schemes/grid-connected/small-hydro/ ; Energy Next, Contributory Artticles, March 20,
179

2017 - http://www.energynext.in/small-hydro-power-in-india/ ; ANERT Survey ,

http://anert.gov.in/index.php?option=com_content&view=article&id=159&Itemid=16 ; Joint statement -
http://powermin.nic.in/sites/default/files/uploads/joint_initiative_of_govt_of_india_and_Kerala.pdf
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Project Parameters 180

Parameter Description

Facilities • Gates
• Trench weir
• Main inlet valves
• Penstocks
• Power house facilities – Turbine, Generator, Transformer, Generator (for
backup), Electronic metering panels
• Switchyard
Cost of the
Estimated per MW cost*: INR 12.5 Cr – 16 Cr
project (INR)
% share of total project cost
• Civil Works: 60%-65%
• Electro-Mechanical Equipment: 17%-20%
• Indirect costs: 17%-20%
• Financing charges: 0.5%-1.2%
Means of
Standard Debt Equity Ratio for hydro projects is 70:30
Finance
MNRE has been providing financial support for the following activities to develop
the SHP sector :
• Research & Development, Capacity building
• Resource Assessment, Detailed Survey & Investigation, DPR
• preparation and perspective plan for States
• Capital Subsidy to State Sector Projects
• Subsidy for Commercial Projects
MNRE provides financial support of INR 1 crore per MW limited to INR 5 crore
per project for projects in Kerala being set up by private sector

# Name of River/River Location Installed Net Land details

scheme basin (District) Capacity Head (in Ha)
(in MW) (in m)
1. Nakkayam Muvattupuzha/ Idukki 12 229 Forest - 9.8
Kiriplavuthodu Private - 4.0
Govt. - 0.6
Total - 14.4
2. Kallar Kallar River/ Thiruvananth 4 96.6 Forest : 4.98
Vamanpuram apuram

3. Thommankut Muvattupuzha/ Idukki 3 36 Forest : 4.00

hu Kannadiar Private: 1.30
Total : 5.30

180
http://powermin.nic.in/en/content/faqs-hydropower , *Cost estimation as per Small Hydro Power in India, Energy Next, March 2017 and KSEB,
http://mnre.gov.in/file-manager/UserFiles/faq_SHP.pdf
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# Name of River/River Location Installed Net Land details

scheme basin (District) Capacity Head (in Ha)
(in MW) (in m)
4. Wanchiyam Wanchiam/ Kannur 3 197 Private: 5.00
Valapatianam

5. Kanjirakolly Udumpanpuzha/ Kannur 2.7 47 Private: 13.00

Valapatianam Govt. :0.72
Total : 13.72
6. Bhavalipuzha Bhavalipuzha/ Kannur 7.5 45 Forest : 7.5
II Valapattanam Private: 0.50
Total :8.00

7. Bhavalipuzha Bhavalipuzha/ Kannur 3.5 10.5 Private: 6.00

IV Valapattanam

8. Pappanoor Kallada/ Kallada Kollam 1.5 8 Forest Land

Required

9. Ambankadav Ambankadaveth Palakkad 2.4 184 Private: 6.75

u ode/
Bharathapuzha

10. Karlmpuzha Karlmpuzha/ Palakkad 4.5 95 Forest : 4.20

Bharathapuzha

11. Palagappandi Palagapandi/ Palakkad 4 820 Reserve

SHES Bharathapuzha Forest

12. Chinnaparam Chinnaparambh Palakkad 11 375 NA

bhuthodu uthodu &
Mandapotty
River/
Bharathapuzha

Competitive Landscape 181

• The small hydroelectric projects that are currently present in Kerala under KSEB are: Kallada
(15MW), Peppara (3 MW), Lower Meenmutti (3.5 MW), Peechi (1.25 MW), Poozhithode (4.8
MW), Vilangad (7.5 MW), Malampuzha (2.5 MW), Urumi I (3.75 MW) & II (2.4 MW),
Chembukadavu I (2.7 MW) & II (3.75 MW), Chimmony (2.5 MW) and Adyanpara (3.5 MW).

http://www.kseb.in/index.php?option=com_content&view=article&id=74&Itemid=729&lang=en , Private players -

181

http://www.kseboa.org/downloads/Study%20reports/private%20sector%20participation%20in%20power%20generation.pdf ,
http://kredlinfo.in/projdet_pdf_files/SH_Allotted%20Capaicty%20to%20be%20commissioned.pdf , http://corporateethos.com/corporate-
domain/cumi-to-set-up-21-mw-hydro-power-unit-in-kerala/
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• As per MNRE, Karnataka has the highest potential of over 4000 MW for small hydro power
projects. The state has allotted about 273 projects since 1995 with total capacity of 1524 MW
with only 9 MW being allotted in FY16-18 period.
• Minar Renewable Energy Projects Private Limited (8MW capacity in Pathankayam in
Kodenchery), M/s Tecil Chemicals and Electro power Ltd. and Kottayam, M/s Silcal Mettullurgic
Limited, Coimbatore are few of the private players in Kerala in this sector.

Conclusion
• SHPs have increasingly become an attractive investment destination since large power
generating units face major challenges with respect to neighbouring flora and fauna
• The proposed projects of KSEB shall have grid connectivity from KSEB to evacuate power from
the hydro-electric power station for which private investors can embark upon a Power
Purchase Agreement (PPA) with respect to each project
• The proposed SHP projects in Kannur, Trivandrum, Idukki and Kollam are planned to be
developed in PPP mode. Select projects have pre-feasibility, detailed engineering and detailed
project feasibility reports prepared by KSEB which can provide deeper insights to prospective
investors.

Holistic Medical Village

Sector/Industry - Services/Healthcare
Project Classification - Mega
Estimated Project Cost - ~ INR 1500 Crore
Project Description

• The tourism sector is the largest service industry in the country, its importance lies in being an
instrument for economic development and employment generation, particularly in the remote
parts of the country. Tourism is one of the largest industry. It contributes 5 – 6 percent of GSDP.
• India is considered as the top medical tourism destination in Asia after Thailand. But only 4%
of foreign tourists come to Kerala of total arrival.
• Kerala lags behind health infrastructure for medical tourism. Project objective is to tap the
opportunity by creating good health infrastructure
Project Scenario – Key Analysis

• The project aims to provide an enabling infrastructure, which will address to the current gaps
in the growth of total medical system and enhance the opportunities with value added service,
which will boost the medical tourism in the state
• The project will have two main components
1. Centre for Clinical excellence
• Treatment facility with modern amenities
• NABL accredited diagnostic centre
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 Study on Investment Potential in Kerala

2. Knowledge Centre
• Human Resource Development Facility with Finishing School,
• It is proposed to be developed with the participation of private partners as a PPP model. The
project will be developed and operated by a Special Purpose Vehicle (SPV) in coordination with
KSIDC/KINFRA
Project Parameters

Parameter Description

Existing Market Kerala hosts 5-7% of the total foreign medical tourist arrivals who avail modern
Size complicated medical Treatments. It accounts to USD 200 Mn

Growth (5 Yrs.) 18.5 %

Market Potential The global medical tourism market was estimated to be USD 17 Bn in FY15,
India’s share is 17%. Which is ~ USD 3 Bn. It is expected to reach USD 7 Bn by
2020

Competitive Tamil Nadu leads the tally followed by Maharashtra and Andhra Pradesh.
Landscape
Kerala has advantage of
Infrastructure – Three international airports which connects all GCC countries
and most Asian countries
Qualified Manpower – Kerala is considered to be nursing hub. Kerala’s doctor
population ratio is 1:792.
Well established wellness system – Kerala is considered to be house of
Ayurveda, it has 1531 AYUSH hospitals

Employment There is an opportunity for Direct employment for 1500 people and indirect
potential employment of 2000 persons

Investment ~1500 Cr
Source KPMG report on Medical Value Travel in India FICCI report on Transformative Evolution: From ‘wellness’
to ‘medical wellness’ tourism in Kerala, All data related to investments and project costs are basis assumptions
from industry and other sources

Project Elements

• Project Objective - To develop a world class medical village with integrated Centre of
excellence in health care.
• Target Location - Well connected place having land with availability of water
• Land requirement - 20 Acres
• Power Requirement - A transformer has to be set up with back up facilities
• Water requirement - Huge quantity of water is required

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• Project Cost - ~ INR 1500 Cr

• 1000 Bedded well equipped treatment centre
• Facility for availing service of
• Modern medicine
• Indian System of medicines
• Homoeopathy
• Poly clinic - NABH accredited diagnostic centre
• Telemedicine facility
• Innovation centre – for conducting research & development 182
• Service apartments – equipped to provide accommodation for 300 families
• Knowledge Convention centre – for conducting health care events, accommodating
1500 persons
• Food Court
• Fitness centre – Yoga, Gym
• Waste Management unit
Challenges

• Availability of land
• The facility is being built aiming at medical tourists – seasonal variations will be there
• Providing quality service at minimum cost

Case Study – Medanta, Medicity 183

Overview Medanta is one of India’s largest specialty institutes located in the

National Capital Region 184.

Year of establishment 2009

Initial Investment (INR) 1000 Crores

Facilities 1,250 beds

350 critical care beds
45 operation theatres catering to over 20 specialties
13 departments of medicines

Patient flow 4000 per day

183
http://www.medanta.org/
184
http://www.forbesindia.com/article/hidden-gems/medantathe-medicity-world-class-health-care-with-a-soul/38218/1?utm=slidebox

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 Study on Investment Potential in Kerala

Employment ~ 5000

Campus area 43 Acres

Revenue (INR) 1,100 Crores (2014)

Challenge 185
• Patients with chronic conditions require frequent check-ups, which is costly for people staying
abroad - cross-country trips. Also scheduling of visits was also difficult.
• Mendata wanted to provide quality healthcare to patients without added costs associated with
travel.
Solution

Medanta created a self-service portal to offer patients a one-stop shop to access medical tests and
records, speak with a doctor or specialist via an integrated video conference, and view
recommendations and diagnosis. Additionally, by offering video conferencing within the ICU, patients
and families are able to see each other, face-to-face, without potential health risks

Large projects

S Project Name Estimated Project Proposed Location

No. Cost

1 Cultural Zone and Theme Park INR 50 Cr Thiruvananthapuram

2 Domestic LED lights INR 12 Cr Kakkanad, Ernakulam
manufacturing

185
Mendata customer case study , All data related to investments and project costs are basis assumptions from industry and other sources
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S Project Name Estimated Project Proposed Location

No. Cost

3 Medicinal Plant Preservation & INR 35 Cr Punalur, Kollam

Processing Unit

4 Natural Colours, Herbal Extracts INR 14.6 Cr Palakkad

and Oleoresins
5 Sports Complex INR 30 Cr Kozhikode
6 Experience Sharing Theme Parks INR 95 Cr Kozhikode, Malappuram,
Kasaragod

Cultural Zone and Theme Park

Sector/Industry – Tourism
Project Type – Large
Estimated Project Cost – INR 50 Crores
Proposed Location – Thiruvananthapuram

Project Description
The proposed Urban Entertainment Centre (UEC) at Veli, which will have cultural zone and theme park
in its vicinity, shall provide premium urban public space & urban entertainment components, catering
to the people of all walks of life. Proposed near the Veli tourist village, the location is in close proximity
of the Veli railway station, the International Airport and the Techno Park. The proposed UEC once build
shall attract tourists and high net worth individuals. Culture & Heritage Centre (CHC) is proposed as
part of the UEC, to tap business tourism including the fast-growing Meetings, Incentives, Conventions
and Exhibitions (MICE) tourism segment in a traditional setting. The project is structured as an
institutional-cum-tourism infrastructure project and would have substantial leisure facilities to provide
fillip to tourism growth in the region. The cultural and traditional zone would be used for showcasing,
preservation and promotion of Kerala’s traditional art, crafts, vocational, cultural and habitat forms.

Market Scenario 186

One key market, linked to the community’s attractive setting, is for small (20-100) executive retreats,
executive training sessions, board visioning sessions, and incentive travel and similar events. For this
type of event, participants/corporates are willing to spend a bit more time and money to have a good
conference facility, a more sequestered setting, and a chance for enjoyable extra-conference activities.
This niche includes both government and private organizations. Attracting these groups is easier
during the summer and non-monsoon seasons, when prospects for recreation are better. A second
important market is for larger events, particularly linked to institutions both national and international.
Kerala convention center industry is estimated to be capped at INR 650 Crore. The sudden growth in
sectors like IT, Tourism, Education has increased the demand for hospitality and MICE facilities. The
Kovalam, Varkala, beach sector has seen the largest number of hospitality growth in the recent history.

186
http://www.emergingkerala2012.org/beta/pdf/inkel/45-Exhibition-Centre-cum-Conference-Hall-at-IETC-Kakkanad.pdf
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Even though the numbers have increased, still the hospitality sector in Trivandrum is under supplied.
The following factors is also expected to impact the hospitality sector in Trivandrum:
• Rise in the international as well as domestic tourists
• Growth in IT/ITES sector
• Establishment of Vizhinjam Container Terminal
• Boom in education sector
• Increase in moving population over the years

Project Parameters

Parameter Description

Capacity
Conferencing with onsite accommodation facilities to accommodate 100 rooms
with facilities such as modern health club, spa and Ayurvedic spa, seminar
facilities, traditional restaurants and theme restaurants, swimming pool and
water front areas. The proposed theme park has three district theme zones that
would showcase the uniqueness of the three cultural regions of Kerala,
Travancore, Kochi and Malabar. The basis of designing and detailing for the
components in each theme would be to show the unique features of the cultural
centers of that particular region.
Land Land proposed is the 18 acre lying contiguous to the Veli Tourist village on both
sides of the Shanghumugham – Veli Road within Trivandrum City limits. The site
is just 3 km from Thiruvananthapuram International Airport, and is 8km from
Thiruvananthapuram city Centre. The Cultural and Heritage Center is proposed
to be developed in a 4.5 Acre land parcel with 200,000 sq. ft. of Built up space.
Theme Park is proposed a one of the major component in the CHC
complementing convention facilities.
Employment There is an opportunity of providing direct employment to more than 200
Potential persons and indirect employment to 1000 persons.

Cost of the
The Cultural & Heritage Centre would consist of 200,000 sq. ft. of built up
project (INR)
commercial space spread over ground plus 4 floors. The cost of providing the
infrastructure for the aforementioned facilities is estimated to around INR 50
Crore. Theme Park area is proposed to be constructed as temporary structures
and would be leased out to investors for a tentative cost of INR 5 -10 Crore.

Means of • Grant: INR 12.5 Crore

Finance • Equity: INR 18.75 Crore
• Term Loan: INR 18.75 Crore
Expected
Sales Turnover • Net Profit > INR 5 Crore
• Internal Rate of Return (IRR) > 20%

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Competitive Landscape 187

• There are dozens of theme and amusement parks in India. However, only a few of them are
outstanding.
• Adlabs Imagica, Near Mumbai
• Wonderla, Bangalore
• Wonderla, Kochi
• Wonderla, Hyderabad
• Kingdom of dreams, Gurgaon
• Ramoji Film City, Hyderabad
• There are 4-5 large water theme parks in Kerala and 2-3 other small theme parks (traffic and
magic theme parks). There are no integrated experience sharing parks in Kerala. Since the
business is capital intensive and requires tacit knowledge in technical aspects and experts. The
market is relatively open to competition and promises great returns.

Conclusion
The Indian amusement and theme park segment is valued at USD 400 mn, compared to the USD 25
bn global amusement and theme park segment, offering immense growth opportunities. With rising
income levels, increased domestic tourism and rise in discretionary spending, it is expected that the
amusement park culture would pick up significantly as an alternative source of entertainment. The
project is bundled in a manner that it is commercial viable in totality with an expected return of over
20% for the potential investor. The Theme Park is ring fenced in such a manner that the independent
viability with a return of over 20% can be expected by the potential investor.

Domestic LED lights manufacturing

Sector/Industry – Manufacture
Project Type – Large
Estimated Project Cost – INR 12 Crores
Proposed Location – Kakkanad, Ernakulum

Project Description
The proposed project is to establish a state of the art manufacturing facility in Ernakulam district
spread across an area of 10 acres which specializes in the design and manufacture of domestic lighting
products with highest standards of quality at an initial cost of investment of INR 12 Crs.
LED lighting is a key proposition towards reduced power consumption. LED’s are available with at the
most Lumen efficiency of 110 Lum/Watt compared to 65-80 Lum/Watt of CFL and FTL, 45 Lum/Watt of
Mercury vapor and 75 Lum/Watt of metal halide or 94 Lum/Watt of Sodium Vapor with operational life

187
https://www.majorgainz.com/ResearchReport_PDF/Rathi/2015/December/11_EQSEC_190811.pdf
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of ~ 50,000-80,000 burning hours as compared to 5000-10000 hrs of CFL and FLT. Notable benefits of
LED’s include
• No cost of replacement of LED’s as compared to other lamps which require frequent
replacement
• No maintenance required as compared to other lamps which have starter igniters and
capacitors which are repair bound.
• LED’s are available in wide range of colors from 2700K to 6500K which are dark, yellow, mild
yellow and ultra-white. LED’s are dimmable. Hence any reasonable fluctuation in input voltage
will not affect life of LED as it happens with all other lamps.
• LED’s produce no UV radiation. LED’s being no-filament lamp, shock and vibration does not
affect its life as it happens with all other lamps.

Market Scenario 188

• Global LED lighting market is forecasted to reach USD42.7 billion by 2020 at a CAGR of 13.5%
from 2014-2020.
• Indian LED Lighting market is projected to grow at a CAGR of 26.6% during 2017-2023.
• Government of India launched an initiative in 2016 to replace conventional lights by LED lights
by deploying 770 million bulbs and 35 million street lights by 2019.
• India has immense potential in the LED industry which is evident from the fact that the market
has displayed a CAGR of 56.1% in the last 5 years. The market is expected to grow to INR 30
million in terms of revenue by FY’2019, largely backed by huge consumption volumes on part
of the government sector
• In Kerala, Keltron presents a series of LED lighting systems to match various applications
manufactured by Keltron Lighting Division at Mudadi, Kozhikode in Kerala State
• In Kerala LED par lights are widely used for commercial lighting and the domestic market.
However, largely Chinese-made LED par lights are being used which do not carry any
guarantee and most of which are thrown away in case of any malfunction which provides a
huge opportunity for a home brand

Project Parameters 189

Parameter Description

Capacity
Capacity of Production: 2.4 Lakhs units of LED lights per annum

Land The project is proposed to be established in two phases. Initial phase to be

established in 10 acres of land at Kakkanad, Ernakulum, with the prospects of
expanding its LED manufacturing facility to double its production capacity to

188
Make in India Report, Research and Markets, March 2017
189
KPMG in India analysis 2017- The total annual units production has been calculated considering the total annual revenue of lighting segment,
average cost of LED bulb, size of facility, KPMG in India analysis 2017 .
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Parameter Description

cater the ever growing market in near future. Location for primarily chosen due
to its easy access by Road to Airport as well as Seaport.

Raw Material Compound semiconductor materials (Indium gallium nitride, Aluminum gallium
& Utilities indium phosphide and Aluminum gallium arsenide), electrical chipsets
(capacitor, diode, resistor and IC chip, etc.) and optical glass are the key raw
materials used in the production of LED bulbs/lights. Other utilities include water,
power, natural gas etc.
Employment The project is expected to create employment opportunity (direct and indirect)
Potential for around 150 - 200 people.

Cost of the
The total project cost of setting up a LED manufacturing unit is INR 12 Crore. The
project (INR)
facility will manufacture LED lighting solutions for indoor, outdoor and industrial
segments.

Means of • Debt-Equity is estimated at 70:30

Finance
Expected The estimated payback period is 13-14 years considering a total production of
Sales Turnover 2.4 lakhs units at an average selling price of INR 300/unit. The EBITDA margin
used for the calculation of payback period stands has been calculated by
averaging the top LED manufacturer’s figures.

Competitive Landscape
• A number of facilities for manufacturing and assembling LED lights have sprung up in India
over the past few years. A number of LED exhibitions have also been held in the country ever
since the advent of LED lights. The government is also playing an important role in increasing
LED penetration in the country with new initiatives such as Domestic Efficient Lighting
Programme (DELP).
• Few key competitors in the market: KELTRON, Philips, Osram, Havells, Wipro, Bajaj, Eveready,
SYSKA, Oreva, Moser Baer, Surya etc.
• Other emerging LED lighting companies in India: GE Lighting, Charlston, NTL Lemnis, Reiz
Electro controls Pvt Ltd, MIC Electronics Ltd, Innovlite India Private Limited, Sanarti Group,
Goldwyn Limited.

Conclusion
The project, to be executed with private participation, aims at providing LED lighting solution to a large
section of people at competitive rates. With so many advantages and potential applications, LED is
sure to succeed in large markets such as India. Thus, LED light manufacturing is a profitable
investment opportunity for the new entrepreneurs.

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Medicinal Plant Preservation & Processing Unit

Sector/Industry – Pharma/Healthcare
Project Type – Large
Estimated Project Cost – INR 35 Crore
Proposed Location – Punalur

Project Description 190

• The proposed project is to set up a Medicinal Plant Preservation & Processing Unit along with
a Plantation & Knowledge Centre in 15 acres of land at Punalur in Kollam district. The project
envisages farming of medicinal plants and will have facilities for processing of the raw
materials, research and development, documentation and manufacturing of medicines.
• The facility proposed at Punalur, shall produce a wide range of classical and proprietary
Ayurvedic medicines, including therapeutic formulations and Food supplements. It shall offer
a full range of Ayurvedic lifestyle products, including health supplements, skin and beauty care
products
• The Medicinal Plantation & Knowledge Centre would not only attract tourists to visit the
garden, it would make them aware about usage of medicinal plant species. Farmers could also
get first-hand information about medicinal plantation from the Centre.
• Dravya guna is a branch of Ayurveda, which deals with all drugs used in the treatment of
diseases, their source, collection, preservation, preparation dosages and uses. Collection
preservation and protection of specific drugs plays utmost role in Ayurveda. Drugs need
preservation for future use in treatment. The main aim of collection and preservation of the
drug is to maintain its potency by conserving its properties and action. Even the best selected
and protected medicine loses its effectiveness after a certain period. Generally they are potent
for one year. Strategic location of processing facilities facilitates the easy procurement and
timely utilization of fresh herbs.
• GMP (Good Manufacturing Practices) certified with all modern manufacturing facilities to
manufacture all types of ayurvedic formulations, most hygienically and in strict adherence to
the prescribed norms coupled with the meticulous selection of raw materials provides
genuineness and efficacy to all products. The products proposed to be manufactured include
Classical medicines, Proprietary medicines and Food supplements. The prime objectives
behind setting up of a Medicinal Plant Preservation & Processing unit along with a knowledge
centre is with the intent of to provide its customers the most comprehensive Ayurveda and
healthcare solutions at affordable prices and to promote, develop and sustainable
technologies, through a seamless blend of traditional wisdom and modern scientific
knowledge.

Market Scenario 191

• Increasing interest by multinational pharmaceutical companies and domestic manufacturers
of herbal-based medicines is contributing significant economic growth of the global medicinal

190
Collection And Preservation Of Ayurvedic Herbs, April, 2016

191
Make in India Report, Research and Markets, March 2017
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plants sector. The global market potential of Aloe Vera used to treat burns and added to skin
creams and cosmetics was estimated in the billions of dollars. Export opportunities of natural
products are tremendous, as the world market is looking towards natural sources for the
purposes of therapeutic use as well as nutritional dietary supplements.
• The principal herbal drugs that are finding a good market in foreign countries are Aconite,
Aloe, Ammimajus, Belladona, Bach, Cinchona, Cassia tora, Dioscorea, Digitalis, Ephedra,
Ergot, Hyoscymus, Ipecac, Isabgol, Liquorice, Opim, Papain, Podophyllum, Pyrethrum,
Rauwolfia, Rhubarb, Senna, Stramonium, Valerian, Sennaleaves, Isabgolseeds/husk and
cassia toraseeds are in maximum demand.
• The total worth of exports of AYUSH products, including extracts of medicinal herbs, has gone
up from $352.93 in 2014-15 to $ 403.59 already in 2016-17. The Indian Medicinal Plant Extract
market is expected to grow at a CAGR of around 22% during 2017-2022. As a result, of
increased investments as well as significant demand of medicinal extract in internationals
markets, there lies immense opportunity for new and existing players to tap the fast growing
market which would garner huge revenue.
• India has large biodiversity and is endowed with 45,000 plant species out of which about
15,000-20,000 plants are known to have medicinal properties. With a share of 46.4%, the US is
the largest importer of medicinal herbs value added products from India in 2013. Other top
importer countries include Pakistan and Germany.
• Government of Kerala offers subsidy and tax holidays to promote Ayurveda as a tourist crowd
puller. As per World Health Organization (WHO) estimates, almost 80% of the population of
developing countries relies on traditional medicines, mostly plant drugs, for their primary
health care needs.
• Modern pharmacopoeia still contains at least 25% drugs derived from plants and many others
which are synthetic analogues built on prototype compounds isolated from plants. Medicinal
plants have been identified as one of the thrust areas by the Ministry and different programmes
have been initiated for conservation of medicinal plants found in the forests and protected
areas as well as cultivation of these plants in the degraded forest areas.

Project Parameters 192

Parameter Description

Capacity
A processing plant capacity of 1000 TPA is proposed. The various sections would
include the following.
A. Ayurvedic Medicinal Plant Preservation & Processing
• Medicine Processing Plant
• Post-Harvest Preservation
• Farmer Training Centre
• Collection & Distribution Centre
• Market Development Centre

192
Project Profile INKEL, KPMG in India analysis 2017
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Parameter Description

B. Medicinal Plantation & Knowledge Centre

• Medicinal Plantation & Nursery
• Green House Farming of Medicines
• R&D in Tissue Culture & Medicine Formulation
• Data Centre & Pharmacopeia
• Technology & Business Incubation Centre (Product Launch)
Two types of processing units are envisaged. The first level of processing will be
carried out at Collection Centres/Pack Houses. Once the produce is collected at
the farms or from wild sources, the same must be properly handled prior to
being taken to well-equipped processing centres, or for direct exports. Such
centres will be equipped with facilities for cleaning, drying under controlled
conditions, sizing, grading and sorting, packaging (including consumer packs)
and storage. These units will also be suitably linked with adequate storage and
arrangements for transport to move the packaged produce for further processing
or export.
These units will have facilities for multi-purpose facilities for grinding, crushing,
solvent extraction, distillation, and antimicrobial treatment etc. It is also
important that the processing units (dry as well as value added products), to be
set up adopt and implement the quality systems as per international standards
like Codex, PFA etc., so as to compete with other developed countries. Medicine
Manufacture of Herbal oils, Ayurveda medicines and patented products in GMP
(Good Manufacturing Practices) certified units to cater to various market
segments.
Land Medicinal Plant Preservation & Processing Unit is proposed in 15 Acres of land
at Punalur, Kollam district, is predominantly an agricultural area. Punalur is a
hilly town and a municipality in Kollam district in the southern state of Kerala,
India. It is the second largest town in Kollam and is one of the industrial towns
in Kerala. It is situated 45 km north-east of Kollam and 75 km north of
Thiruvananthapuram. Punalur is the headquarters of Pathanapuram Taluk. This
place is the gateway to Western Ghats and it is connected to the towns of Tamil
Nadu like Tenkasi. The Project location is at the eastern side of Kollam district
which is mostly agriculture dominated. This will help the agricultural production
in that area.
Raw Material Seeds and propagation material, water, power, internal roads, parking area,
& Utilities security, Sewage Treatment Plant (STP), landscaping, pedestrian streets and
other services required for the complex.

Employment Estimated employment opportunity direct 100 and indirect 200.

Potential
Cost of the
The estimated project cost for the development of proposed Medicinal Plant
project (INR)
Preservation & Processing Unit along with a Plantation & Knowledge Centre in

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Parameter Description

15 acres of land at Punalur in Kollam district is INR 35 Cr. (Including Land cost,
construction cost, plant & machinery, other facilities)

Means of Various government support initiatives from Central and State Government such
Finance as grants/subsidies from Ministry of Agriculture, AYUSH etc. can be leveraged.
Expected Average revenues per annum is expected to be around INR 4 – 5 Crore. The
Sales Turnover Project is expected to be completed in 2 years, from the date of obtaining all the
clearances and approvals, in a phased manner. Demand for medicinal plants is
increasing in both developing and developed countries due to growing
recognition of natural products being non-narcotic, having no side-effects, easily
available at affordable prices and sometime the only source of health care
available to the poor. Medicinal Plant Preservation & Processing in the Hub at
Punalur ensures synergy and enhances the marketability of the project. All these
factors related to the project may fetch a return of more than 25% to investor or
to the operators of the project.

Competitive Landscape
• The growing demand for herbal products has led to a quantum jump in volume of plant
materials traded within and across the countries. Interest and support for the conservation and
development of medicinal plants is increasing in all parts of the world. In India, Medicinal
plants sector has traditionally occupied an important position in the socio cultural, spiritual
and medicinal arena of rural and tribal lives.
• USA and Europe are the largest markets for herbal products, accounting for nearly two-thirds
of the total demand. The varied agro-climate conditions in Punalur make it suitable for growing
a wide range and variety of valuable medicinal plants. Medicinal Plants are highly esteemed
all over the world as a rich source of therapeutic agents for the prevention of diseases and
ailments. Kerala is host to one of the largest number of quality treatment centers and the
largest number of treatment methodologies. There are 18 Medicinal Plants Nurseries in Kerala.
• Major players in the Ayurveda sector are Kottakkal Arya Vaidya Sala, Kerala Ayurveda
Pharmacy, Aluva and Nagarjuna.
Conclusion
The project, to be executed with private participation, aims at providing services in Ayurveda to a large
section of people at competitive rates, to promote, develop and sustainable technologies, through a
seamless blend of traditional wisdom and modern scientific knowledge and to promote opportunities
for employment generation for skilled and unskilled persons, especially unemployed youth.

Natural Colours, Herbal Extracts and Oleoresins

Sector/Industry – Manufacturing
Project Type – Large
Estimated Project Cost – INR 14.6 Crore

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Proposed Location – Palakkad

Project Description
• The project proposes production of herbal extracts - 150 MT/annum, natural colors/flavors:
100T/annum and oleoresins: 50 T/annum in Ernakulam or Palakkad districts.
• Kerala is known for its lush green cover and abundance of natural resources. There is increase
in awareness of naturally available produce and products.
• Oleoresins are a combination of oil and resin extracted from plants in a liquid form. The
extraction process begins with raw spices that are cleaned and ground, then the spices' oils
are distilled using an organic solvent.
• Oleoresins find application in Beverages, Confectionery, Meat Canning, Sauces,
Pharmaceuticals, seasonings etc.
• Natural food colours are dyes or pigments extracted from natural sources such as fruits,
vegetables and plants. They are largely used for flavouring and as additives of food particularly
by large scale food processing and flavouring units engaged in meat canning, manufacture of
sauces, soft drinks, confectionery etc.
• A liquid herbal extract is a concentrated solution made by extracting (pulling or "washing") the
herb's chemical constituents out of the inert herb fiber (cellulose) with a solution of alcohol
and water or glycerin and water. A good liquid herbal extract should optimally preserve the
aroma, taste and biological activity of the herb from which it is made.
• Vanilla extract is a commonly known liquid herbal extract. Herbal extracts find application in
Ayurvedic drugs and pharmaceutical preparations. Herbal colours and aroma are useful for
cosmetics and food additives.
• Flavors accounted for over 35% of the overall market and emerged as the leading segment
followed by food & beverages

Market Scenario 193

• The global requirement of various oleoresins such as paprika, chilly, turmeric, pepper, ginger,
and cardamom is about 15000 tonnes and the global spice oleoresin market is values at US$ 1
Mn.
• Kerala is home to a variety of spices and is well-known for producing some of the best quality
spices when it comes to cardamom and pepper. Synthite Industries limited, a Kerala based
company alone commands for nearly 30% share in the global Oleoresin market.
• The country exported 11,475 tonnes of oils and oleoresins valued at INR 1,911 crore during
2014-15. On the quantity front the increase was 1% compared to the previous financial year.
India is a leading exporter of spice oils to West Europe, USA and Far East. Kerala grows
cardamom (small), cinnamon and cassia, clove, ginger, nutmeg &mace, pepper, turmeric,
vanilla and cambodge.

193
KSIDC Kerala IP Final Report 2017, http://www.business-standard.com/article/markets/oleoresin-companies-move-out-of-india-shift-focus-to-
south-east-asia-china-115091600538_1.html , http://www.indianspices.com/spice-products/spice-oils-and-oleoresins-0 ,
http://www.isca.in/rjcs/Archives/v4/i2/15.ISCA-RJCS-2014-007.pdf
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• As of now, the sector focus in on export markets and the industrial segment like hotels,
bakeries etc. Huge scope exists for expanding the market to include home users, caterers and
industrial canteens. The usage of spice oleoresins is largely used for Italian, Mexican and other
continental dishes and not much in Indian and especially Kerala cuisine.
• The market for natural colors will probably become strong as manufacturers start using natural
colors in more number of products and start to see extremely steady natural colors and venture
into new natural and herbal extracts. The investment in natural food color market across the
globe has touched to US $ 1 billion in 2014. The natural food coloring industry market is
increasing at 10% -15% yearly.
• The Indian herbal supplements and remedies market is forecast to reach $50 million by the
year 2020, spurred by growing aging population and increasing consumer awareness about
general health and wellbeing, according to a new report from Global Industry Analysts. Herbal
extract market products promise a good and vast market for dyes. Additionally, the fact that
herbal supplements and remedies cause little or no side effects and provide greater efficacy is
also proving to be a major factor aiding market growth.

Project Parameters 194

Parameter Description

Capacity
• Herbal extracts: 150 MT/annum
• Natural Colors/flavors: 100T/annum
• Oleoresins: 50 T/annum
Land Land Requirement – 200 cents or 2 acres. Land can be sought from KINFRA Mega
Food Park, Kanjikode, Palakkad and KINFRA Integrated Industrial Park,
Ottapalam, Palakkad.
Raw Material The proposed unit would require approx. 140 KVA power, with steam
& Utilities requirement of 0.3 MT per hour. Apart from these utilities, the unit would require
facilities for storing 10 KLPD liquid carbon dioxide at high pressure and handling
of the same. Standby power generation of 100 KVA will also be required to run
critical continuous process plant and & machinery.
Employment The unit would require direct employment of approx. 50 persons that will
Potential include technical, managerial and blue collar man power.

Cost of the
project (INR) • Land 2 acres: INR 5 Cr
• Land development: INR 0.5 Cr
• Building: INR 0.75 Cr
• Plant & Machinery: INR 7 Cr
• Miscellaneous Fixed Assets: INR 0.30 Cr

194
Emerging Kerala Project Profile, District Industries Centre, Kozhikode
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Parameter Description

• Preliminary & Pre-operative exp.: INR 0.45 Cr

• Provision for contingencies: INR 0.45 Cr
• Margin Money for working capital: INR 0.60 Cr

Means of
Promoters contribution: INR 5.84 Cr
Finance
Term Loan: INR 8.76 Cr
Expected Expected payback period is 3 to 4 years. On an expected RoI of 25%, a profit of
Sales Turnover around INR 8 crore may be earned.

Competitive Landscape
• The market is upcoming and relatively new in Kerala.
• Synthite Industries Ltd. Kochi commands 30% of the global market.
• Some of the other national key competitors include Arjuna natural extracts Ltd., Bio-gen
extracts Pvt. Ltd., Vidya Herbs Pvt Ltd., Venkatesh Natural Extract Pvt Ltd., Akay Flavours &
Aromatics Ltd., Global Green Co. Ltd., Kancor Ingredients Ltd., Novo Agritech Ltd., Sijmak Oils
Ltd. and South East Agro Inds. Ltd.
• Skilled job requirement is essential requirement to provide competitive capabilities to players.
• Other players include Kancor, AVT Natural etc.
Conclusion
The global essential oils and oleoresins market is poised to surge exponentially in the forthcoming
years. People are becoming more and more conscious about using natural products as the risk of
using synthetic flavours, colours and extracts are being highlighted. As of now, the sector focus in on
export markets and the industrial segment like hotels, bakeries etc. Huge scope exists for expanding
the market to include home users, caterers and industrial canteens. As the food industry grows
continuously, the demand for flavouring agents, natural colours, and spice oils will increase. Rising
interest in ayurvedic and herbal medicines, will increase demand of herbal extracts as a raw material
to the burgeoning industry. These agro-allied services will revive agriculture related small and medium
industries helping farmers and related people to be employed sustainably. Being an agro food
processing industry, Govt. of India subsidy/grant is available for the project. This sector has a huge
potential that can be explored.

Sports Complex
Sector/Industry – Infrastructure
Project Type – Large
Estimated Project Cost – INR 30 Cr
Proposed Location – Kozhikode

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Project Description
• Kerala is well known beyond the nation’s boundaries for its great sporting culture and has
produced many great athletes and sportsmen over the years. It’s a mixture of nature, nurture
and sporting culture that has made Kerala successful. Kerala hosted national games twice in
1987 and 2012. This state has always stood for an active lifestyle and a competitive spirit that
has given rise to many sporting icons at National, Olympic and Commonwealth events. Most
of these athletes struggle to find adequate sports facility to practice
• Recently Sports such as hockey, kabaddi, badminton, tennis, football and cricket leagues have
become popular in the last few years, and this requires professional and specialized sports
facilities for practice and competitions. The availability and quality of Sports Infrastructure is
essential for a country to achieve success in the global sports arena. As a result, the concept
of sports complexes has emerged. Sport complexes provide sports facilities with residential
spaces available. The idea is to develop a fully integrated sports complex that includes
stadiums, multiple recreational and leisure zones, gyms, parks and other facilities.
• The proposed sports complex will be developed as an integrated facility that will encourage
different sports and promote healthy lifestyle to the citizens.
• The facility shall act as a venue for national and international sport events, and attract
sportspersons across the country
• The local population would benefit as the proposed complex would encourage them
to enroll in sports via membership schemes
• Youngsters who wish to take up sports as a profession would have adequate
opportunities to get trained by experienced and reputed coaches
• The proposed Complex will house a Sports Academy that will focus on R&D of sports
medicine and also develop skills of existing trainers (train-the-trainer Program). This
will help develop professional qualified trainers who can move to the next level as
coaches
• The proposed sports complex is to be established in 10 acres of land at Kozhikode district at
an estimated cost of INR 30 crores with fully air conditioned modern indoor sports complex
spread over an area of 1,50,000 Sq. ft. with a gallery seating capacity of 6000 spectators having
facilities for Basketball, Volleyball, Shuttle Badminton, Table Tennis, Kabaddi, Squash,
Swimming, Health club, Gymnasium, cafeteria etc. A convention hall is also proposed for
hosting sports events and other functions for bagging additional revenue.

Market Scenario 195

Sports sector in India comprises of a range of associated businesses such as sports manufacturing,
retail, tourism, sports medicine, venues & infrastructure, media & hospitality and merchandising.
Indian sports infrastructure market is estimated INR 80,000 Cr. (USD 11.9 Billion). Additionally the
sports sponsorship market has grew 12.5 % year on year in 2015 to reach INR 5190 Cr. The sector has
seen steady growth in the past few years due to new sporting leagues such as The Indian Super League
(ISL), the Pro Kabaddi League, Indian Premier League (IPL), Hockey India League (HIL) and Indian

195
Sports City report, Ibrant, Gujarat 2017, Government Releases 20-Point Plan To Win 50 Olympic Medals By 2024, Report 2016, Business of
Sports: Shaping a Successful Innings for the Indian Sports Industry, Article, Indian sports needs to institutionalize private investments, Business
Economics, 2016.
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Badminton League (IBL). Global sports industries growth rate is projected to reach at 6.1% by end of
2017 amounting additional 90.9 billion USD growth on current market value of nearly 700 billion USD.
India comprises of approximately 1% of the total market with high potential for rapid growth in coming
years. International sports events are also on a rise and this indicates an increase in demand for sports
infrastructure. Such events include Olympics, Commonwealth games, Asian games, Paralympic
games etc.

Major growth drivers:

• Aim to match global standards across various sports: National Institution for Transforming
India (NITI Aayog) has come-up with a new plan called Let's Play - Action Plan for enhancing
sports performance in India. The initiative is aimed at targeting 50 Olympic medals in the 2024
Summer Olympic Games. This requires international standard sports infrastructure facility in
the country, driving need for sport cities in India.
• Consumer emphasis on healthy living: Rising middle class with increased health awareness,
health maintenance trend and focus on leading active and healthy lifestyle.
• Rising popularity of National and International Sporting Events
• Favorable government policies to promote sports sector.
• Increase in demand for sports infrastructure: According to FICCI study, about 1.3 m young
people in India are likely to consider sports as a profession by 2017, therefore demand for
sports infrastructure is likely to increase in the coming years. Also, domestic events such as
IPL, Hockey India League, etc. would induce demand for appropriate infrastructure in the
country.

Project Parameters 196

Parameter Description

Capacity
Based on the preliminary assessment it is envisaged that the sporting complex
facility would include arenas to host International sporting events, National
sporting events, Professional sports leagues, Student/University activities,
Sports Academies, Training institutions and Camps, Concerts & Shows,
Corporate events, Commercial establishments, Food and Beverage Facilities,
Entertainment and Leisure activities.
The sporting facilities in the complex shall encompass the following:
• Indoor arena with facilities for Basketball, Volleyball, Shuttle Badminton,
Table Tennis, Kabaddi, Squash, Swimming with a gallery seating
capacity of 6000 spectators.
• 200 m indoor jogging track
• Parking space for 300 cars
• Health club and Spa facility

196
Emerging Kerala Project Profile, District Industries Centre, Kozhikode
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Parameter Description

• Accommodation facility for 200 people, convention hall and

administrative block
• Optional facilities like club house or gymnasium for commercial purpose
• First aid treatment area and recovery rooms.
• Toilets meeting international standards in terms of facilities and with a
ratio of 40% toilets for women
• Minimum area of emergency services like police and fire brigade
• Cafeteria of best standards.
Land The integrated sports complex is proposed to be established in 10 acres of land
in Kozhikode district. The dream project of Kozhikode Sports Complex would
create infra structure facilities for the benefit of the sports persons, the sports
organizations, youngsters of Kozhikode. Complex include fully air conditioned
modern indoor stadium having an area of around 1.5 lakh Sq. ft. with seating
capacity of 6000 spectators.
Raw Material Raw materials account for majority of cost in addition to land and labor. Major
& Utilities raw materials used for constructing sports city include – steel, concrete,
electricals and sanitary fittings, aluminum, flooring and glass. Steel and concrete
are the main raw materials required for infrastructure projects like sports
complexes and will account for nearly half of the total raw material cost. Flooring
for sports complexes like cricket stadium, football stadium, athletics stadium etc.
is primarily done using granite. Internal flooring of rooms is done with vitrified
tiles. Stadium and court turfs, sports equipment’s. Utilities include power, water,
drainage system, waste management systems.
Employment Manpower require estimated to be 60-70 Nos. Instructors, Managers,
Potential Executives, Administrative staffs, Supervisors, Technicians, Assistants,
Security, and helpers are the working force envisaged for the implementation
of sports complex.

Cost of the
A considerable sum of money is required to setup up required to develop such
project (INR)
high quality facilities in sports complex, and in order to make the project
financially viable it is decided to initially focus on facilities which have a high
revenue potential in the first phase. The Capital expenditure for the proposed
facilities along with supporting infrastructure (internal road network,
landscaping, water drainage system, waste system management) is estimated
to be around INR 30 crores. In addition to initial Capital expenditure the bidder is
expected to incur yearly O&M expenses, and any other planned/unplanned
investments for up gradation of facilities as and when required.

Means of The major expense area would be the construction and civil works. Funds are
Finance required for Site development (internal roads, sewage line, water supply, street
lighting, landscaping), Construction (indoor stadium, convention hall, residential

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Parameter Description

space and other amenities) and miscellaneous fixed assets (Furniture and
fixtures, office equipment - laptops, projectors). Means of finance include equity,
FDI, Term loan, Central and State Government grants/subsidies, International
Event organization’s fund, Financial Institutes.
Expected An income of INR 1.5 crores can be expected in a year on an investment of INR
Sales Turnover 30 crores from indoor stadium rent, convention hall, health club, gymnasium,
cafeteria/food court, sports complex membership schemes, parking fees etc. and
the entire investment can be realized during the period of 20 years. The lease
period would be 30 years which is negotiable with the Government and thus one
can conclude that this project is economically and financially viable.

Competitive Landscape 197

Most of the large stadiums in India are developed, owned & maintained by the respective sports
association for single sport stadiums like football & cricket. Sports complexes capable of hosting
multiple sports are mainly developed and owned by the respective government or the Indian Olympic
association & its member associations. In addition there are a number of privately developed sports
complexes coming up in the country
• Excellence academies set-up by ex-sports professionals to focus on the development of young
talent in the country (Pullela Gopi Chand sports academy, Tata football academy)
• Private developers like Jaypee group, educational institution & others have developed sports
infrastructure that is used for internal purposes and also to host major events. They adopt a
membership model for revenue generation and has the ability to host national events. In
addition to the facilities the venue also provides professional coaching to the members.
The Sports Authority of India has setup 9 academic regional centres which offer training and coaching
facilities to sports persons across the country namelylIndira Gandhi Sports Complex, Major Dhyan
Chand National Stadium, Dr. Syama Prasad Mookerjee Swimming Pool Complex, SAI Udhav Das
Mehta Central Centre - Bhopal, SAI Netaji Subhas Southern Centre, Bengaluru. Key private players
include Japyee, Supertech, Ajnara, Savvy Infrastructures Pvt. Ltd., Lotus Greens etc.
Conclusion
The primary objective of the model report is to facilitate the entrepreneurs in understanding the
concept of sports complex and serve as a guidance for setting up such a facilities in the state. The
Project objective is to develop under PPP (Public Private Partnership) mode and the partnership would
adopt DBFOT (design, build, finance, operate and transfer) model. The new venue will also be used to
market and attract world class events improving the tourism and associated revenues for the state.

197
Sports Authority of India, Jaypeesportscity.co, Supertech Limited. Meerut Sports city, T K Devasia (2015), Sachin Tendulkar plans sports city in
Kochi, Khaleej Times
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Experience Sharing Theme Parks

Sector/Industry - Tourism/ Entertainment

Project Classification – Large
Estimated Project Cost - ~ INR 95 Cr

Proposed Location - Kozhikode, Malappuram, Kasaragod – Highest proportion of urban population

and child population
Project purpose and objective

• The experience sharing theme park constitutes a group of entertainment attractions and other
events based on certain fantasy themes which are largely children and family-oriented. An
integrated experience sharing theme park shall showcase theme-based fun-factory tours,
recreational activities, restaurants, shopping, gaming etc.
• The park shall be an addition to boost up the tourism industry in Kerala and increase livelihood
opportunities for local population especially in the Malabar region. The development of
adequate infrastructure facilities for promoting tourism would be key to developing the state’s
economy.
• Kerala, which is home to 250 Lakhs domestic and foreign tourists in the last three with an
average growth rate of 7.53% is an ideal location for such a theme park to come up.
Market Scenario
• A large youth population (who are the main visitors to amusement parks) and increasing spend
on leisure and entertainment supported by rising income levels, prospects of the domestic
amusement park industry are bright. Amusement parks are a nascent industry in India, poised
to showcase huge potential for growth.
• India’s per capita income has grown at a five-year CAGR of 16%. It is also interesting to note
that the share of discretionary spending in overall expenses has increased rapidly from 19% in
1981 to 45% in 2012. With a sizeable population in the 15-35 age group, interest in amusement
parks is also expected to rise.
• According to CRISIL Research, given the large youth population and rising income levels
leading to increasing affordability) the amusement park industry in India is underpenetrated
and new parks with new and innovative offerings are likely to get a good response.
• The proposed fun factory theme based integrated park will be one of its kind in India and can
not only attract local tourists but also domestic tourists across the country.
Project Parameters

Parameter Description

Existing Market Size INR 6,000 crore by 20201, poised to register a 20% CAGR

Growth Footfalls have grown at 10.4% CAGR during FY09-13

Revenues have grown at 22% CAGR (Wonderla)

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Parameter Description

Market Potential Due to the rising middle class and increased affordability, increase in
tourist footfalls is expected through developing this project. State
endowed largely with water-based theme parks. Innovation can attract
large number of footfalls.

Competitive Landscape There are 4-5 large water theme parks in Kerala and 2-3 other small
theme parks (traffic and magic theme parks). There are no integrated
experience sharing parks in Kerala. Since the business is capital
intensive and requires tacit knowledge in technical aspects and
experts, it is a risky proposition.

Employment potential The combination of retail and entertainment facilities helps to draw
people in and support the overall operations of the theme park. There
is an opportunity of providing direct employment to more than 200
persons and indirect employment to 1000 persons

Expected revenues With an average ticket price of INR 1350 and annual footfalls of 7 lakhs
in the first year , expected revenues amount to ~ INR 95 Cr

Potential districts Kozhikode, Malappuram, Kasaragod – Highest proportion of urban

population and child population

Source: Economic Times – Wonderla, Census 2011 Kerala State Profile, www.capitalmarket.com, CRISIL
Research, All data related to investments and project costs are basis assumptions from industry and other
sources

Project Elements
• Theme definition - Factory based experience sharing for kids constituting of 6 factory pavilions
with dry rides covering each pavilion, animation characters, virtual reality ride in 2 pavilions,
customized activities in each of the pavilion, theme based-retail outlets to own merchandise.
• Target Location – Area in close proximity to Kozhikode, Malappuram and Kannur. (Districts
with highest share of urban population in the state)
• Target Market – Urban Households, Non-resident Keralites
• (Total urban households in the 3 districts amount to ~12, 86000)
• Target footfalls to the park – 50% of urban households in select market
• Land availability – Availability of suitable land which is easily accessible by transport networks
as these are an important factor in determining the number of visitors the park is likely to
attract
• Access - Important to look into both medium and long distance access networks and the need
for a transport system in keeping with the needs of the demand
• Appropriate size (land requirement) – 20-30 acres

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• Integrated development strategy – Theme-based rides, activities, retail outlet, food court, star
attractions, Theme-based shows, maintenance and quality of service
• Project Cost elements
• Average project cost - INR 150-200 Cr
• 6 Pavilions with minimum built-up area of 10,000 sq ft. comprising of rides through factory
layout, adventure rides, special effects, activity space and queuing space
• Food courts with sufficient capacity to cater to 1000 visitors a time.
• Infrastructure – Adequate parking facility, washrooms, prayer rooms, seating area
• Live program zone – Indoor theater with seating capacity for 300 quests
Key challenges
• Land risks
• Maintaining high quality of safety and hygiene standards
• Seasonal patterns of visitors
Case Study – Wonderla, Kochi

Key parameters Wonderla Kochi

Year of Commissioning 2000

Area (acres) 93.17

Distance from center of city (kms) 15

Capex incurred (INR Cr) 65

Land-based rides 33

Water-based rides 22

No. of employees 274

No. of restaurants 7

Yearly footfalls in lakhs (2013) 12.1

Ticket pricing INR (2016) 600-750 (regular)

760-950 (peak)
1200-1900 (fast track)
Yearly revenues (2013) 58.4

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International Case Study – Hersheys Chocolate World (Pennsylvania) 198

Theme – Explore the many wonders of chocolate

Footfalls - Through its first year of operations, Chocolate World had over 1.4 million visitors

Attractions

• Chocolate Tour
• Create your own candy bar
• 4D Chocolate Mystery
• Chocolate tasting experience
• Trolley works
• The jungle
• Candy store
• Photo studio
• Icecream and Milkshare shop

International Case Study – Crayola Experience (Minneapolis) 199

Theme - Crayola Experience to let one’s creativity run free, to color outside the lines, and to play,
explore, and learn

198
http://www.hersheys.com/chocolateworld/;
199
http://www.crayolaexperience.com/Minneapolis
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 Study on Investment Potential in Kerala

Total Area – 60000 sq.ft

Total employees – 250

Estimated investment – USD 30-50 Mn (INR 200-350 Crs) 200

Attractions - 25 one-of-a-kind attractions includes: Crayon Factory, Activity Studio, Art Alive, Be a Star,
Birthday Rooms, Café Crayola, Café Stage, Color Magic, Color Playground, Colossal Candy, Crayola
Store, Doodle in the dark, Drip Art, Puzzle it, Rainbow rain, Scribble Square, Toddler Town, You design
etc.

Micro, Small and Medium projects

S Project Name Estimated Project Proposed Location

No. Cost

1 Fruit Processing & Canning INR 5-6 Cr Kannur, Palakkad

2 Inflight Catering Unit INR 5 Cr Thiruvananthapuram,

Ernakulam, Kozhikode,
Palakkad

3 Integrated Coir Processing Unit INR 8 Cr Thrissur, Kozhikode, Alappuzha

4 Home Based Bakery Brand INR 5 Cr All districts

5 Hospital Medical Furniture INR 2 Cr Ernakulam, Palakkad
6 All-Service Portal and Training INR 10-15 Lakhs Central portal catering to all
Center districts

7 Home-based Solar Micro Solar PV Panel All districts. Primary those with
generation Costs INR 30-50 highest share of urban
per watt of power households –
generated Thiruvananthapuram,
Kozhikode, Thrissur,
Ernakulum, Kannur etc.

8 A-Z Online Delivery Portal INR 5-7 Cr Tier-I and Tier-II cities in Kerala

9 Contact Centres INR 7-10 lakhs All districts

Fruit Processing & Canning

Sector/Industry - Manufacturing /Food Processing

Project Type - Large

Estimated Project Cost - INR 5-6 Crores

200
http://finance-commerce.com/2015/12/crayola-to-make-mark-at-moa
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Proposed Location - Kannur, Palakkad

Project Description

• Fruit Pulp is the concentrated fruit juice on processing of fruits. The pulp can be easily extracted
from Mango, Guava, custard apple, gooseberry etc. and are plenty in availability.
• The fruit pulp can further be used to produce downstream products like fruit jellies. The canned
mango pulp has about two years of shelf life without using a cold storage. Canned fruit pulp
is consumed as a fruit juice and in the processing of fruit jelly.

Fruit processing- canning Manufacturing process 201

Market Scenario

The fruit pulpy juices have good market. The processed fruit pulp has enhanced shelf life and has
significant export potential. Presently, a mere 2.2 per cent of fruits and vegetables are processed.
Mango, Guava, custard apple, gooseberry are available in Kerala.

Few of the fast growing segments of food processing are:

• Mango and other fruit pulp

• Pickles & Sauces
• Fruit jam, marmalade, crush, squashes, juices etc.
• Canned fruits
• Ready to Eat (RTE) and Ready to Serve (RTS) products
• Wet salads, purees, coulis, sauces, smoothies, chunks, slices

Project Parameters

Parameter Description

Existing Market Size 2015 – 16 India exported Mango Pulp worth INR 7963 Cr and
Other Processed Fruit and Vegetable worth INR 29003 Cr

Growth (5 Yrs.) 11% (India Market)

Market Potential There is a tremendous potential for processing units,

considering the still the sector is in budding stage.

Competitive Landscape There are lot many private players in fruit processing industry in
India. A large number of units are in MSME sector having

201
http://www.dcmsme.gov.in/reports/mechanical/AdjustableHospitalBeds.pdf
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Parameter Description

installed capacity of 250 Tonnes per annum and large

companies have capacity of 30 Tonnes/Hour

Employment potential The fruit collection units can be set up in every districts and
processing units can be set up in Palakkad or Kannur. There is
an opportunity of providing direct employment to more than
200 persons and indirect employment to 1000 persons

Govt. Support 100% FDI is allowed. Five-year tax holiday for new food
processing units in fruits and vegetables processing

Potential Districts Palakkad, Kannur

Project Cost (INR) 5 to 6 Crores

• Capital Expenditure –
• Land for setting up factory
• Building Infrastructure
• Pulping and canning
• Pre operating cost
• Raw material
• Utilities – power, water

Source: NABARD Project report on vegetable & Fruit Processing, KSIDC Project Profile on Mango Processing
unit, http://apeda.gov.in/apedawebsite/six_head_product/PFV_OPF.htm, http://foodprocessingindia.co.in/sector-
profile/fruits-andvegetables.html, all data related to investments and project costs are basis assumptions from
industry and other sources

Project Elements

• Target Market – Domestic and international market

• Products - Fruit pulp and related products

• Location – Kannur, Palakkad are rich in Mango, Guava and Sapota, Gooseberry

• Capacity - 1000 MT

• Water requirement – 1000 L per day

• Manufacturing process - Skilled process

• Skill building – Employees will be trained for operating the machines

• Quality Assurance - Industry standards needs to be followed and as per the guidelines of
Food Safety and Standard Authority of India (FSSAI)

• Marketing Strategy – Brand building activities has to be initiated.

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 Study on Investment Potential in Kerala

Inflight Catering Unit

Sector/ Industry - Transport / Services

Project Classification - MSME
Estimated Project Cost - INR 5 Crores

Proposed Location - Thiruvananthapuram, Ernakulam, Kozhikode, Palakkad

Project Description

• The flight catering industry is a very large, More than 340 crores people are served in a year
globally. India is among the fastest growing aviation markets.
• During FY 16 increased at a rate of 21.3 per cent compared to FY15.
• Airlines use food as a marketing tool. A number of airlines advertise their product by making
food the focal point.

Market Scenario

Total passengers travelled in India during FY16 is more than 10 Crore passengers. The Kerala’s share
is
• Cochin airport - ~78 Lakhs
• Trivandrum Airport - ~35 Lakhs
• Calicut Airport - ~ 23 Lakhs
The airline requires its catering supplier to deliver on certain key variables, such as:
• Consistency of food product
• Accuracy of uplift
• On time delivery
• Value for money
• Service relationships
• Health, hygiene and safety
• Innovation
• Overall operational performance

Project Parameters

Parameter Description

Existing Market Size The revenue earned by Trivandrum, Cochin, and Calicut
airports 2014 -14 was INR 7,600 202 Crores

Growth (5 Yrs.) (Kerala Market) 16.21% (Revenue Growth rate)

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Parameter Description

Market Potential India’s In-flight catering market was 10003 Crores in 2010

Competitive Landscape There are about 35 in-flight catering services in India,

Employment potential The employment multiplier is 6.10

Govt. Support The national civil aviation policy 2016 aims in harmonized
growth of all aviation sub sectors.

Potential districts Thiruvananthapuram, Ernakulam, Kozhikode, Palakkad

Investment (INR) 5 Crore

Source: http://epubs.surrey.ac.uk/2200/2/E66589A3.pdf, http://dir.indiamart.com/impcat/in-flight-catering-
services.html, http://timesofindia.indiatimes.com/business/india-business/Flight-caterers-eye-retail-
business/articleshow/6482451.cms, Director General of Civil Aviation, National Civil Aviation Policy 2016, All
data related to investments and project costs are basis assumptions from industry and other sources

Case Study – TajSats 203

The TajSats started in-flight catering services in the year 1976. With clientele of 9 domestic and 23
International air carriers, leads the Indian in-flight catering market. They have got branches in seven
cities across India. TajSats follows a market niche strategy 204– Special meals for Jains, diabetics,
infants and children. They have prepared more than One Crore 205 hot food till 2011.

203
http://www.muthootskychef.com/
204
https://www.ukessays.com/essays/marketing/business-strategies-of-the-taj-sats-air-catering-marketing-essay.php
205
https://www.scoopwhoop.com/inothernews/indian-mega-kitchens/#.oo3kxfr68
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Case Study – Muthoot Skychef Trivandrum

The Muthoot skychef started their operation in 2003. The kitchen is situated near to Trivandrum
International airport. The catering unit has the capacity of serving 3600 passengers per day. The unit
has modern kitchen equipment and good transport system which enables them to meet the order
requirement on time. Their customers include Air India, Indian, Qatar Airways, and VIP flights
transiting

Integrated Coir Processing Unit

Sector/Industry - Manufacturing/ Processing

Project Classification - MSME
Estimated Project Cost - INR 8 Crore

Proposed Location - Thrissur, Kozhikode, Alappuzha

Project Description

• Kerala is in third position in coconut production in India.

• Coir composite boards consist of properties such as lightweight, corrosion resistance and
other advantages, the proposed Coir composite boards (CCB) of integrated Coir processing
plant will be an important composite material in building and civil engineering fields.
Market Scenario

• As India is moving towards environment friendly nation, the requirement of non-plastic

products will be high in demand. Also it can be exported to foreign countries, as the coir
products are in demand everywhere, it has got good export value.
• Coconut consists of water and copra contained in a hard shell covered with fibrous husk.
• Fibre is extracted from coconut husk mechanically and is used in making several products with
wide applications such as Coir Fibre, Coir Yarn, Floor Mats, Curled Coir, Mattresses, Coir
Ropes, Anti-weed blankets, Erosion Control Blankets, Fishing Nets, Coir Pith – A by-product

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Project Parameters

Parameter Description

Existing Market Size In year 2013-14 the coir products export was INR 1476 Crores.
Kerala contributes 85%3 of total coir products and accounts for
50% in terms of value (INR 780 Cr).

Growth (5 Yrs.) (Kerala Market) 25.74%

Market Potential There is high demand in global market for value added products
from coir yarn. Currently Sri Lanka and China leads the table.

Competitive Landscape There are about 8814 Coir Units in Kerala. And 450 coir products
exporters in India.

Employment potential Coir Industry Provides employment to about 3, 75,000 people.

Direct employment to 100 persons

Potential Districts Thrissur, Kozhikode, Alappuzha

Investment (INR) 8 Crore

Source : KSIDC Project Profile on Coir Processing, Coir Board, Report on Kerala Coir products, Economic
Times 27-Mar-16, Lok Sabha Unstarred Question No. 2167, dated on 03.08.2015, All data related to investments
and project costs are basis assumptions from industry and other sources

Case Study – Coimbatore Coir Cluster 206

Product Range
• Coir Fibre
• Coir Yarn
• Coir Pith Block
• Curled Coir Rope
• Rubberized Coir
Size of cluster & Type of units The total number of coir units available in the cluster area is
around 264 units of which 145 Nos. are engaged in Fibre
Extraction, 13 Nos. engaged in Yarn Spinning, 40 Nos. engaged
in Curled Coir Rope Making, 1 No. engaged in Rubberized Coir
and 65 Nos. engaged in manufacturing of Pith Blocks.

Turn over (INR) 230 Cr

206
http://coirboard.gov.in/wp-content/uploads/2016/03/FINAL-ECO-Coir-Pollachi-Writeup1.pdf, All data related to investments and project costs
are basis assumptions from industry and other sources
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 Study on Investment Potential in Kerala

Employment (Direct) 3353

Employment (Indirect) 1500

Income for workers INR 500/day

Cluster map

Home Based Bakery Brand

Sector/Industry - Manufacturing/ Food Processing

Project Classification - Nano MSME
Estimated Project Cost - INR 5 Crore

Proposed Location - All districts

Project purpose and objective

• Bakery business in Kerala is the largest segment in food processing sector. Bakery products
have become very popular throughout the state. Bakery can be one of the most profitable food
processing business opportunity if the market is targeted with right product mix. Bakery
products are an item of mass consumption.
• The objective is to build a Kerala bakery brand – to integrate the unorganized sector. The food
products will be made in households level and with a proper supply chain management will
meet the demand of local and away markets.
• An online platform will be set up where the entrepreneurs can register with for the food items
they would like to manufacture. After due quality assurance process the entrepreneurs will
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 Study on Investment Potential in Kerala

become authorized vendors. The platform can also be used by general public/ retailers for
ordering their choice
Market Scenario
• Bakery industry has become India’s third largest of the food industries with an annual turnover
of about Rs.3000 crores. India is one of the largest producer of biscuits.
• Bread and Biscuits form the major baked food accounting for over 80% of total bakery products
produced in the country. With Bakery products’ low price and with rapid growth and changing
eating habits of people, they have gained popularity among people.
• In India the unorganized sector contributes 55% of total production which comprises an
estimated 75,000 bread bakers, mostly located in the residential areas of cities and towns.

Project Parameters

Parameter Description

Existing Market Size The revenue generated during 2013 – 14 was INR 810 Crores
Kerala

Growth Bakery industry is growing @ 13 – 15%

Market Potential There is a rapid growth in demand for ready to serve and ready to eat
food items in the state.

Competitive Landscape • As per the report published on Hotels and Restaurants in

Kerala, 2015 by Department of Economics and statistics, there
are about 36,000 Restaurants and 16000 Tea & Snack stalls in
the state.
• There are 50 to 60 small local Bakery chains in the State

Employment potential • The industrial segment provides direct employment to about

27,000 persons.
• The proposed project has the potential to provide job
opportunity to 1000 persons

Expected revenues 5 Crores

Potential districts All districts

Source: MSME – PM’s Employment generation programme, Muvsi business idea, Department of Economics &
Statistics, All data related to investments and project costs are basis assumptions from industry and other
sources

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 Study on Investment Potential in Kerala

Project Elements
• Target Market - All households in the state and Middle east
• Target Items - Ready to Eat and Ready to Serve food items
• Location - Manufacturing units in all districts and three logistics centres at Northern, Central
and Southern regions
• Manufacturing process - The food items will be produced in home based kitchens, which will
be packaged at logistics centres and distributed to retailers and to end consumers
• Quality Assurance - The product quality will be ensured through a sample checking process
• Marketing Strategy – Brand building activities to be initiated
• Media marketing – Visual, FM, Print
• Digital marketing
• Word of mouth
• Project Cost
• Capital Expenditure –
• Kitchen - Kitchen, Equipment's,
• logistics centres – Land, Work shed, packing equipment's
• Vehicles
• Raw materials
• Working capital
• Salaries
• Challenges
• Getting entrepreneurs to invest
• Maintaining consistent quality

Case Study – Anns House 207

207
http://www.annsindia.com/cakes.html
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• Anns Ind Flavours is a new venture of Anns Group, setup to manufacture spices, spice blends
and breakfast cereals.
• The manufacturing facility is a state of the art one in terms of infrastructure as well as
machinery and is certified for ISO 22000:200 which covers an area of 50000 sq ft the facility in
'Pala'
• 'Anns' brand is synonymous for quality bakery products 208

Year of Establishment 1984

Products • Cookies & Biscuits,

• Bread,
• Cakes and Pastries,
• Snacks,
• Local sweets and Namkeens

Revenue (INR) 12 – 14 Crores

Employment 500 persons

Location Central part of Kerala Kottayam, Pathanamthitta

Other Initiative Anns Spices

Household Farming Cold Storage

Sector/Industry - Agriculture/ Storage

208
http://www.indiamart.com/anns-bakery-confectionery/
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 Study on Investment Potential in Kerala

Project Classification – Medium

Proposed Location - All districts

Project purpose and objective

• As per latest Kerala organic farming policy a model to be developed for sustainable organic
farming and will be made part of responsible tourism programme. Also it thrusts on setting up
decentralized cold storage facilities for preserving farming products.
• The Urban Housing Mission aims to build houses for al in the state.
• These two policies can be inferred and a policy to be made for making house hold farming as
integral part of housing projects.
• The project aims to build small capacity cold storage facilities in vegetable markets of every
panchayats.
• This will help in storing the surplus amount of vegetables in daily market for selling the
products later
Market Scenario
• Kerala has become consuming state, and has negative growth rate in agriculture production
in last four years. To improve upon the present scenario, Government is encouraging all type
of farming and providing subsidies.
• As the availability of farming land is in diminishing trend, the house hold farming will be a
suitable solution for Kerala.
• As the production increases the non-availability of proper storage facility will become a bottle-
neck in tapping the potential.
• The high end cold storage will require huge space and for daily storage, it is not required.
• The cold storage/cold chain facilities in the State will become an unavoidable support.
Project Parameters

Parameter Description

Existing Market Size 95% of cold storage available in the state are for marine products
India

Growth • The vegetables or fruits cultivated in Kerala are not stored in

cold storage facilities
• The traders/consumers are not aware about the benefit of cold
storages in preserving perishables

Market Potential Even though there is not much production of fruits and vegetables in
the state, for the huge quantities of vegetables arriving from
neighbouring states there is a need of cold storage chains. Also
house-hold farming units will require these facilities in future

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Competitive Landscape Though cold storages are available, but there are less players in the
vegetable storage segment

Employment potential 1500

The cold storage facility will require one person. If the cold storages
are set up in all the panchayats and every ward of municipal
corporations and municipalities

Expected revenues INR 15,00,000 per cold storage

(the capacity will be 10MT and the rent will be INR 0.5/Kg, the facility
will be available for 300 Days)

Potential districts All districts

Source: MSME Report on Cold storage unit, http://agmarknet.nic.in/klcsmp.pdf, All data related to investments
and project costs are basis assumptions from industry and other sources

Project Elements
• Target Market – All panchayats
• Location – Near to vegetable markets
• Storage process - The ideal environmental condition for storage of fresh fruits and vegetables
is the lowest temperature which does not cause chilling injury to the product. The capacity of
utilization of cold storage is about 70%. 300 days in a year.
• Training – One time training will be required for maintaining the cold storage
• Quality Assurance - this will be done after each process completion
• Requirements –
• High Tension power supply with backup generator
• 1000L per day
• 10MT cold storage
• Challenges
• For setting up cold storage License is required from Local government
• There is no subsidy provided by government for setting up cold storage

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Case Study - Economical Cold-Storage, Lettuce Farm, Maharashtra

Problem Statement
A medium sized farm produces 800 Kg lettuce per day. As there is time gap of one day to reach the
destination market, 40% of the total production is spoiled as a result of exposure to heat and
transportation. Though the leafs are stored in cold atmosphere, the rate of spoilage are not reduced.
This is because the vegetables are damaged before keeping them in cold storage
Solution
A small capacity of cold storage facility was established near to the farm. As the leafs are chilled
immediately after harvest, spoilage has reduced considerably
Conclusion
Chilling the fresh vegetable/fruit immediately at the source will increase shelf life and the profits of the
farm

Hospital Medical Furniture

Sector/Industry - Manufacturing/Light Manufacturing

Project Classification - MSME
Estimated Project Cost - ~ INR 2 Crore
Proposed Location - Ernakulam, Palakkad

Project purpose and objective

• Kerala’s health sector is expanding rapidly. More and more health care facilities are being set
up.
• Hospital furniture have important role to play in health care. Makes patients feel comfortable
during their stay in hospital or the surgery/post-surgery as well.

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• The project aims in setting up a light engineering unit for manufacturing hospital medical
furniture to cater to the rise in demand.
• Initially the unit will manufacture as per the local market demand, later will tap the international
market
• The product range includes such as: Different type of hospital beds – ICU, Fowlers,
Orthopaedic, Baby crib, Hospital mattress, Hospital cabinet, Doctor chair, Examination table,
Bed side screen, Tables, Foot stools, Stretchers
Market Scenario
• Kerala health care system provides quality service with international standard.
• The growth in medical tourism also drives state-of-the art heath infrastructure in the state
• There are about 15,000 medical institutions in Kerala.
• The total bed strength is about 1,00,000
• The health care is expected to grow with more private players entering into market
• There are about 10 manufacturing units in the state.
•
Project Parameters

Parameter Description

Existing Market Size The Indian healthcare sector is valued at USD100 Bn

Growth 17%

Market Potential High potential. With the rapid growth in the number of Public and
Private Hospitals, and emphasis being laid to provide more and better
Medical facilities in the village & small towns, the demand is likely to
increased further

Competitive Landscape Well established manufacturing entities are there in the market. Good
marketing strategy will be required to establish the brand.

Employment potential The hospital medical furniture segment has high potential in
generating employment. There will be requirement for High skilled
workers of 100

Expected Revenue (INR) 3 Crore ( Sale of 2000 hospital furniture units worth of average price
INR 15,000)

Potential districts Ernakulam, Palakkad

Investment (INR) ~ 2 Crore

Source: FICCI report on Kerala Healthcare system, IBEF report on Healthcare,
http://www.dcmsme.gov.in/reports/ADJUSTABLE%20%20HOSPITAL%20%20BEDS.htm, All data related to
investments and project costs are basis assumptions from industry and other sources
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Hospital Bed - Bed manufacturing process 209

Project Elements
• Target Market – Public and Private medical institutions in the state
• Products - Hospital furniture
• Location – Ernakulam precision engineering park
• Manufacturing process - Highly skilled process
• Skill building – Employees will be trained for operating advanced machines
• Quality Assurance - Industry standards needs to be followed
• Marketing Strategy – A good marketing plan should be made for promoting the brand
• Media Publicity
• ICT programmes
• Project Cost
• Capital Expenditure
• Land for setting up factory
• Building Infrastructure
• Machinery and other equipment
• Pre operating cost
• Raw material
• Utilities – power, water
• Challenges
• Availability of skilled labour
• Land availability

Case Study – Godrej Hospital Bed 210

209
http://www.dcmsme.gov.in/reports/mechanical/AdjustableHospitalBeds.pdf, All data related to investments and project costs are basis
assumptions from industry and other sources
210
Case study DESIGNING ‘MADE FOR INDIA’ HOSPITAL FURNITURE
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• Godrej interio is the leading brand in home and office furnishing. They wanted to foray into
the Hospital Furniture domain.
• Onio worked on the design right from user research, concepting, prototyping to
manufacturability and created a range of patient room furniture.
• Full-scale working prototypes were built & tested for performance before it was delivered to
the client.
Challenges
• Patients of all age should be able to use
• All stakeholders – doctor, other staff, patient
Solution
• Onio’s complete ‘design & features’ strategy to meet user needs, based on research, provided
a breakthrough
• The design won many awards

Case Study – Narang 211, Medical Limited

• Year of establishment – 1989
• Location – Delhi
• Export – 40% of total production, medical equipment are exported to 80 countries
• Quality Standard - conform to ISO 9001:2008, EN ISO 13485:2012 and CE standards

211
http://www.narang.com/products.php
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• Product Range –The various range of products includes : Hospital Medical Furniture,
Orthopedic Implants & Instruments, Medical Disposables, Diagnostic Equipment & Products,
Anesthesia Equipment & Products, Autoclave & Sterilizers, Laboratory Products, OT
equipment, Medical Imaging, Rehabilitation products

All-Service Portal and Training Center

Sector/Industry - Other Services/Skill Development

Project Classification – MSME
Proposed Location - Central portal catering to all districts

Project purpose and objective

• Holistic solution to provide enhancement of requisite skill sets and create a platform to self-
employ certified repair and maintenance professionals – Electricians, plumbers, carpenters
etc..
• The ultimate objective is to build a whole ecosystem in collaboration with Department of
Industrial Training, Kerala through a PPP Model to provide world-class training facilities for
skill enhancement, monitor and verify service professionals and build a platform to connect
customers to certified service providers providing employment as well.
• Main purpose for the project is to address major concerns of lack of transparency, lack of
quality and lack of on-time performance in this sector which aggravates the need for training
the workforce
• The project is key to build an organized profile for this industry which is largely unorganized
and with wide gaps in meeting demand for quick and efficient repair and maintenance services.
Market Scenario
• Professional repair and maintenance and other service market aim to fix the one perennial
problem at most homes today which is the need for a well-trained, professional service
provider who provides quality service and time-bound service.
• In the recent past the focus is also on improving the lifestyle of the average domestic help and
their families through better pay and perks like insurance benefits, flexible work hours and paid
weekly-offs.
• Increasing customer bookings in metro Tier-I cities indicate how quickly some of these services
have become popular.
• Other service related apps operating in tuer-1 cities have been growing at 30-40%

Process Description

Project Parameters

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Parameter Description

Existing Market Home services market in India, pegged at approximately $100 billion. 5,000
Size urban homes translates into a market size of INR 25 lakh per day per city

Growth 300% yoy annual growth (Easy Fix)

Market Potential A service provider aggregation model is asset-light and highly scalable.
Large scope to develop an organised network of service providers. With
increasing sale of white goods and housing sector, demand for repair
services is showing an increasing trend.

Competitive Very few online portals available in Kerala– Fixall, Metro360 etc. Many
Landscape players nationally - UrbanClap, LocalOye, and Taskbob.Handy Home etc.
These players are generic marketplaces providing all sorts of services – from
guitar tutors, electricians, beauticians, and event managers. EasyFix
specializes in the home repairs and maintenance category, which requires
technical expertise. An integrated model of training and service portal will
be first of its kind in Kerala

Employment Under the Department of Training, over 20,000 skilled technicians are
potential passing out from various Government and Private ITIs from across state.
Service platform can provide opportunities in scale of at least 10,000 skilled
professionals

Expected revenues INR 1-2 Cr

Potential districts Central portal catering to all districts

Source: http://www.skilljobs.kerala.gov.in/jobportal.html; Yourstory, http://www.hindustantimes.com/more-

lifestyle/bai-on-call-how-home-service-apps-changing-the-maids-market/story-s6zz6kmWw1aEamZ1yLxjaL.html,
All data related to investments and project costs are basis assumptions from industry and other sources

Project Elements
• Skill enhancement – Skill enhancement to cater to demand driven market relevant courses to
address the skill development and training. Skill up gradation to strengthen mathematics and
communication skills

• Target Market – Urban households in all districts primarily Thiruvananthapuram, Ernakulam,

Trichur, Kozhikode and Kannur ~ 25 lakh households

• Target Services – Electrician, Plumber, Carpenter in initial phase

• Target Bookings – 30% of urban households in select market

• Quality of Service – Process to ensure minimum process time from online booking to
completion of work by technician

• Marketing strategy – Servicemen providing service under one brand, marketing channel -
Primarily digital and word of mouth

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• Project Cost elements 212

• Average project cost - INR 10-15 Lakhs

•
Website development cost – INR 1.5-3 lakhs to get an initial version of the
product to market. A more robust app could cost between INR 3.5 – 5 lakhs for
an initial version
• Hosting
• Design
• Custom Development
• Setup and Configuration
• Training
• Website maintenance cost
• Verification team costs – In-house grooming experts, Skill verification by Department
of Industrial Training, Certification costs
• Logistics and Branding – Services for transportation of servicemen. Tools and uniforms
for service professionals
• Key challenges

• Aggregating service men other than those registered from Department of Industrial
Training as it is largely an unorganized sector
• Pricing model as there is no standard pricing of home services
• Need-based industry poses challenges in streamlining both pricing and mainstream
adoption
Case Study – FixAll.in (Kochi) 213
Services

Location

• Kochi
• Thrissur
• Kottayam
• Expansion to Thiruvananthapuram and Kozhikode

Process

212
JIS Institute of Skill Development, https://atlanticbt.com/blog/how-much-does-ecommerce-wesbite-cost/ , All data related to investments and
project costs are basic assumptions from industry and other sources
213
Fixall.in, Housejoy
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Offering – Self-employment platform that connect customers to service providers using latest
innovative technologies. Customers who have maintenance issues at home can log on to the Fixall
website and select the service they require, along with a description of the issue, following which
the team responds with a phone call to get address details and further clarifications if required.
For work of a larger scale, a work coordinator visits the site to conduct an evaluation. Materials are
procured locally and billed to the customer while labour charges are extra

National Case Study – Easyfix

Offering - To provide customers with home repair service experience that delights them and
become their best-handy-friend

Employment – 2,500 servicemen across top 5 cities

Turnover – 2.5 Cr

Service - 5, 50,000 houses in 5 years

Estimated investment – INR 10 lakh per city

Services – The wide range of services includes: Plumber, Electrician, Carpenter and A/C &
Refrigerator

Process

Rates

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Home-based Solar Micro generation

Sector/Industry - Electricity
Project Classification - Large
Proposed Location - All districts. Primary those with highest share of urban households –
Thiruvananthapuram, Kozhikode, Thrissur, Ernakulum, Kannur etc.
Project purpose and objective
• The project is proposed to be implemented in collaboration with ANERT on a PPP model basis
structured to improve the quality of the grid in general with specific focus on evolving nano/
community grids. The project will function primarily on smart grid principles.
• The company will be set-up with an objective to provide comprehensive assistance in installing
grid-connected solar PV setups in households and equipping households with Feed-in-tariff
principles and net-metering installations. ANERT will act as the nodal body to get all
clearances in enabling grid connectivity to the participating households.
• This project will be a solution to the power shortage problem in the state. As about 65% of the
annual power requirement of the state is sourced from outside the state and with Government
of India recent mandate that 85% of the power generated in a state has to be utilized in the
state creates challenges for Kerala. In order to fulfil the state’s power demand, the best solution
is to build a home-based solar micro-generation ecosystem
Market Scenario
• Solar electricity is green renewable energy and doesn't release any harmful carbon dioxide or
other pollutants. A typical home solar PV system could save nearly two tonnes of carbon per
year.
• In the recent past, households have introduced solar water heating and solar lighting systems.
• ANERT is working on 25000 rooftop grid-connected programme for government buildings. The
regulations and system to operate this programme is being developed by ANERT. Association
with ANERT on such a project would help leverage expertise in this regard.
• Kerala had a demand of more than 4172 MW of electricity as on March 2016, but the generation
was only 2545 MW2. About 1626 MW were purchased from central pool and the remaining gap
was managed through load shedding and power cuts.

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Process Description
• Registration/Empanelment of Installer /Manufacturer through an enrolment process
• Payment of registration fees
• Single window process in assisting consumer to obtain guidance and permissions for
successful installation
• The installer shall
• Install the system:
• Show you how to operate the system and how to spot faults
• Provide information on maintenance requirements
• Share pack of all documents, manuals and warranties
• Undertaking by consumer on completion of installation and provide portal access to receive
details on net-metering bills and payments
Key Parameters
Parameter Description

Existing Market Solar energy harvesting is achieving new prospects in Kerala. Kerala has a
Size solar rooftop potential of 10,000 MW
Growth Growth will be driven by successful implementation of Feed-in-Tariff
scheme in the state
Market Potential About 80 % of the electricity demand is from the 90 lakh domestic
consumers. Most consumers are affluent and would not mind putting up
solar plants on their roofs for energy security, Kerala was one of the very
first states to put together a very comprehensive renewable energy policy.
The commitment is reiterated and fleshed out in further detail in the Kerala
Solar Energy Policy 2013.
Competitive There are no business model operating in such a fashion. Largely solar-
Landscape driven initiatives are subsidized by government.

Employment This system is poised to provide employment opportunities in the scale of

potential 50-100 employees to maintain the portal and empanel suppliers in the portal

Expected revenues Revenue collection basis registration fees of households ~ 2% of total costs
incurred by households

Potential districts All districts. Primary those with highest share of urban households –
Thiruvananthapuram, Kozhikode, Thrissur, Ernakulam, Kannur etc.
Source: http://www.pv-magazine.com/archive/articles/beitrag/600-mw-of-solar-to-be-added-to-indian-state-of-
kerala-in-next-three-years_100026510/#ixzz4ROwQ5GQp, http://www.thehindubusinessline.com/economy/kerala-
plans-25000rooftop-solar-units-programme/article4385219.ece ,
ww.cea.nic.in/reports/monthly/installedcapacity/2016/installed_capacity-03.pdf, http://blog.ksidc.org/solar-
energy-harvestation-reaching-new-heights-in-kerala/

Project Elements
• Target Location – Area in close proximity to Kozhikode, Malappuram and Kannur. (Districts
with highest share of urban population in the state)

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• Target Market – Urban Households

• Target no. of households – 10% of urban households in select districts in initial phase of
operation

• Solar PV- Basic building block of a PV system. A basic PV cell produces a very small amount
of electricity and multiple of them connected together to form a Solar PV module that can
generate 10W to 300W output. Arrays can help generate more output.

• System sizing– Sizing will depend on the load requirements in your setup. It is important to
note that a Solar system is good for operating low wattage appliances like lights, fans, TV,
etc.

• Roof capacity - Solar Panel structure typically weight 15kg per sq meter and the roof should
be able to handle the load.

• Output– Typically a 1kW capacity solar system will generate 1600-1700 kWH of electricity per
year

• Net-Metering - Compliance to be followed with respect to Kerala State Electricity Regulatory

Commission (Grid Interactive Distributed Solar Energy Systems) Regulations, 2014

• Accounting and Settlement - Accounting and settlement of electricity drawn and injected by
an eligible consumer monitored by ANERT)

• Project Cost elements 214

• Average project cost for household

• The cost of setting up a rooftop solar power generation facility varies between
INR 1.75-2 Lakh

• A good 5 kW system for a home would cost around Rs 3-4 lakhs to setup,
which can provide electricity for 25 years. The additional operating cost will
include the cost of replacing the batteries.

• In case of net-metering for grid-connected systems batteries can be avoided

hence reducing maintenance costs

• Solar PV Panel – Costs INR 30-50 per watt of power generated

• Solar Inverter - Grid-tied inverters, convert the direct current (DC) electricity produced
by your solar PV panels to alternating current (AC) electricity that can be used in your
home and exported back to the grid.

• Solar batteries/Net Meter

• Average project cost for company

• Development cost for building a portal that will register households and
integrate net-metering collection with distribution company

214
ANERT, https://www.bijlibachao.com/solar/roof-top-solar-pv-system-project-for-home-and-office.html , All data related to investments and
project costs are basis assumptions from industry and other sources
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• Marketing programs to attract households

Key challenges
• Other subsidy driven programs of ANERT and Government of Kerala may pose risks

• Lack of awareness of consumer households about net-metering guidelines and regulations

Case Study – 10,000 Rooftop Solar Power Plants Programme of ANERT (Off-grid) 215
Process

• Programme for decentralised standalone rooftop solar power generation. Target to 1kW solar
power plants on 10,000 rooftops totalling a capacity of 10MW.
• Registration process for selection of beneficiary
• Installation of the solar power plants will be through a panel of agencies, selected from channel
partners of MNRE whose financial and technical credibility is already confirmed by MNRE.
• The beneficiaries can select any agency of their choice for installation of the system. The list
of empanelled agencies along with the rates offered will be available to beneficiaries.
• Total Subsidy available is limited to INR 92,262
• System configuration to include: Solar Panel, Battery, Power conditioning unit, Cables,
Switches/Circuit breakers, Junction Boxes etc.
• Beneficiary share of the cost of the system (over and above the subsidy) will be directly paid
by the beneficiary to the selected Agency
•
International Case Study – Microgeneration Certification Scheme (EU)

215
ANERT, http://www.microgenerationcertification.org/
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• The Microgeneration Certification Scheme (MCS) is an industry-led and nationally recognised

quality assurance scheme, supported by the Department of Energy and Climate Change
(DECC).
• MCS certifies microgeneration products used to produce electricity and heat from renewable
sources. MCS also certifies installation companies to ensure the microgeneration products
have been installed and commissioned to the highest standard for the consumer. The
certification is based on a set of installer standards and product scheme requirements
Key Features
• The Key features of this scheme includes: Consumers, Installer Search, Product Search,
Important Consumer Information, Microgeneration Technologies, Installation Process,
Finance & Incentives, Complaints, Amend Certificate

A-Z Online Delivery Portal

Sector/Industry - Transport/Services
Project Classification - Nano Large
Project cost - INR 5-7 Cr
Proposed Location - Tier-I and Tier-II cities in Kerala

Project purpose and objective

• Project aims to provide a full-fledged delivery platform for Hypermarkets, supermarkets,
pharmacies and other vendors/retailers who intend to provide home delivery services to their
customers. The proposition is to help deliver anything from these stores during pre-selected
time slot of delivery by customers.
• Kerala is the first digital state of India. However, the use of digital services are in the nascent
stage with a huge surge in online delivery options in Kochi and Trivandrum where online
delivery options are in demand now. Primarily this area functions in the food delivery segment
and not spread across other segments.
• The project aims to build an online delivery brand which will function in all districts through a
delivery logistics system which will sign up runners and partners to get anything delivered at
the customer’s doorstep.
Market Scenario

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• Selling groceries and other daily-use products online can open up a sales avenue for retailers
at little extra cost. In the recent past, with a large customer base and increasing penetration of
Internet connectivity and growing popularity of online shopping many entrepreneurs have
seen the potential in creating e-stores for groceries.
• In Kerala, spending on grocery and daily essentials is the largest and most consistent share of
spending for any household. However, it has still not got into the ambit of online shopping and
hence provides a huge opportunity.
• Kerala government’s present rules for ecommerce transactions from players outside the state
gives immense opportunities for in-house players to operate in this space and develop a strong
market in Kerala.
• With a strong retail market in the state with hypermarkets and supermarkets functioning
actively in Kochi, Trivandrum, Kozhikode, Trichur etc., opportunities to tie-up with their home
delivery wing increases prospects of such a proposition
Project Parameters

Parameter Description

Existing Market Size Food and grocery industry in India is now worth USD 383 billion and
is expected to touch USD 1 trillion by 2020

Growth In the last 3 years, the sector saw 200% growth in the number of new
ventures in the online delivery space.

Market Potential Online delivery is primarily in the grocery segment. Other areas are
less explored especially that of medicines and delivery from
hypermarkets, supermarkets and other retailers. The online grocery
sector is in its growing stage with more business models evolving,
there is enough space for multiple players and scope for their rise.

Competitive Landscape In Kerala, quite a few online delivery stores for grocery, food delivery
are in operation. Few players being Kada.in, onedaycart, emarginfree,
luluwebstore, keralashop.in, ekada etc. Competition is increasing
primarily in the grocery segment.

Employment potential In the partnership model, as many as 50 runners will be employed to

cater to delivery per city. Apart from this the team members will
constitute of 50 members

Expected revenues Revenue will be gained through commission from registered partners
and delivery charges based on availability of partners in a particular
city. Average revenues of 5% per order. With a target of 500 orders
per day of average amount of INR 150, revenues will amount to INR 1
lakh per month per city in the initial phase

Potential districts Tier-I and Tier-II cities in Kerala

Source: https://yourstory.com/2015/11/kada-groceries/, http://www.financialexpress.com/industry/shopping-
online-in-kerala-expect-no-delivery-messages/162777/ All data related to investments and project costs are
basis assumptions from industry and other sources
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Project Elements
• Platform – When a consumer shops on the app, they get to choose a retailer (signed-up
partner) in their neighbourhood or city limits where the customer wants to order from. Other
than retailers, white-good manufacturers can use the app to facilitate deliveries of their
orders. Separate segments of delivery will be available – Food, Grocery and essentials, White
goods, etc. Through the app, the order goes to the partner and the assigned runner picks up
the order and delivers the order. Partners and runners can sign upon the mobile app platform
of A-Z and join the on-demand logistics network of A-Z portal.

• Target Market – The portal will caters to buyers in Tier 2 cities of Kerala. The aim is to
exhaust the potential of one location before targeting new ones

• Partners – Hypermarkets, super markets, small grocery, pharmacies, clinics and other stores

• Runners- Drivers who have a bike and intend to do part-time job, auto-rickshaw drivers, and
small logistics firms etc. For large orders tie-ups with small pickupvans.trucks.

• Order Fulfilment – Customer can place order from their desired store signed up as partners
and the mobile app will assign suitable runner and provide tracking details, payment details
to the customer.

• Logistics network – Build a robust offline local network that can fulfill the orders. Also an in-
house network in large cities as well

• Project Cost elements

• Average project cost - INR 5-7 Cr

• High end mobile app with multiple features to integrate partners and runners
for order fulfilment which will be outsourced to a third-party technology
platform – INR 25-30 Lakhs
• Branding – Extensive co-branding with partners. Every partner and
runner will be allocated branding merchandise

• Logistics – In-house logistics network in main cities with minimum 2

bikes and 3 delivery personnel

Key challenges
• Standardizing commission and delivery fees

• Assuring on-time delivery of products

Case Study – Kada.in (Trivandrum) 216

Year started 2012

Business Model Combination of its own inventory for fast-moving products,

as well as partnerships with retailers in the city

216
http://www.businesstoday.in/moneytoday/smart-spending/online-grocery-shopping-vegetables-new-trend-in-india/story/197141.html, All
data related to investments and project costs are basis assumptions from industry and other sources
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Investments (INR Cr) 1.25

Revenues (INR) 15lakh per month

Revenue from mobile app (%) 15-20%

Anticipated Growth (%) 300% (expansion to other cities)

No. of orders 2200-2500 per month

Categories Gramam/Village, Helping Hands , Grocery, Vegetables &

Fruits, Fish, Chicken & Meat , Organic Products , Bakery &
Beverages, Household, Health and Beauty, Mumz and Baby,
Pet Zone, Stationery

Employees 50 and other part-time employees

Kada.in special ‘Kada.in Specials’ is an effort to encourage women

entrepreneurship. A campaign to encourage housewives to
become entrepreneurs by having them create products
(such as pickles and snacks), Kada sells those items through
their platform.

International Case Study – Postmates 217

• Transforming the way goods move around cities by enabling anyone to have anything
delivered on-demand. Our revolutionary Urban Logistics platform connects customers with
local couriers who can deliver anything from any store or restaurant in minutes.
Key proposition
• Postmates embrace food delivery by delivering not just takeaways, but other local goods too

• Postmates help city users get any kind of product, including hot food, delivered to them in
under one hour.

Business model
• Connects customers with local couriers, who go out and buy the takeaway food and bring it
to them

217
https://postmates.com/partner, Business Insider, http://www.businessofapps.com/six-app-startups-revolutionising-food-delivery/
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• Also opened up its API to small businesses so that any developer can integrate delivery into
their own restaurants and apps and access the firm’s fleet of drivers

Technology
• Purely a mobile app, without an accompanying online option, that allows users to search for
available food deliveries and other products.

• Allows real-time tracking of delivery in much the same way

• No.of orders processed - Surpassed 2.5 million deliveries in 28 markets in 2015

• No.of delivery personnel - 13,000
• Key partners - Apple, Starbucks and Chipotle

Contact Centres

Sector/Industry - Communication/IT

Project Classification - Nano MSME

Project cost - INR 7-10 lakhs

Proposed Location - All districts

Project purpose and objective

• A women-focussed entrepreneurship model of operating a virtual contact center whose
services can be availed by any organization (white good manufacturers, online portals, airlines,
bus operators etc.) for their customer care operations. This model will be a platform for women
to work from anywhere provided they have an internet connection, smart phone and laptop of
their own. This model of operation can reduce in-house costs of the companies that deploy an
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additional customer care call-center unit in terms of infrastructure, equipment and other
associated costs.
• The flexibility of working from home and flexibility of timings will provide employability to the
large home maker segment of Kerala.
• Outsourcing virtual contact center services can help organizations benefit in quick call closures
and increase output.
• The project can be rolled-out in collaboration with Kudumbasree mission as well.
Market Scenario
• Kerala is poised to be the state with highest literacy. The state although claims to possess this
achievement, large number of women are unemployed especially post their marriage. Kerala
is ranked 25 with regards to female work participation rate in 2011 census. Women in Kerala
log an unemployment rate of 47.4 %, as compared to 9.7 % of men.
• The patterns in educational and occupational trends for women in the state are dramatically
contradictory when compared to many other Indian states. Hence attracting more women to
the main stream of employment would accelerate the pace of economic development in
Kerala.
• Leveraging potential of this section of workforce especially empowering the unemployed
housewives can help provide customers with high-quality customer support services while
cutting down costs.
Project Parameters
Parameter Description
Existing Market Size BPO sector in India is estimated to have reached 54% growth revenue.
70% of India's BPO industry's revenue is from contact centers. The
domestic Indian IT-BPM market is rapidly approaching the USD 50
billion mark. Kerala’s potential to capture at least 0.1 % of this market
can fetch INR 335 Crs

Growth The demand for Indian BPO services has been growing at an annual
growth rate of 50%

Market Potential Business Process Outsourcing (BPO) is the fastest growing segment
of the ITES (Information Technology Enabled Services) industry in
India. Kerala, poised to have a strong IT base in the state can attract
educated professionals to this contact center.

Competitive Landscape National companies operating in Bangalore, Delhi etc. provide their
service in Kerala. There is no known presence of Kerala based large
players operating in this model. However, there are lot of home-based
jobs available in the market.

Employment potential IT-BPO/BPM sectors contributes to one of the largest employers. Such
a call-centre can provide employment to ~1000 women professionals

Expected revenues Revenues are basis number of calls/chats/mails/sms closed per day.
Assuming INR 10 for successful closure, 500 calls per day, revenues
amount to ~INR 15 lakhs per year

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Potential districts All districts

Source: : http://labourbureau.nic.in/Statistical_Profile_2012_13.pdf,
http://www.thehindu.com/news/national/kerala/kerala-tops-in-unemployment-rates/article8226139.ece,
https://www.outsource2india.com/callcenter/articles/virtual-call-centers.asp,
http://shodhganga.inflibnet.ac.in/bitstream/10603/21340/15/15_chapter%203.pdf ,
https://www.outsource2india.com/india/bpo-industry-india.asp , All data related to investments and project costs
are basis assumptions from industry and other sources.

Project Elements
• Home agents - A home agent will require to have a smartphone mobile connection, internet
connection and a personal laptop. The agents can login to the central portal and choose their
work plan at the beginning of every week. At month end, basis successful call closures and
number of calls attended salaries would be transferred. Incentives for best performing agents
will be announced every quarter

• Pricing - Pricing will be based on scale of contract, call volumes, duration of project, skill level
requirements and technical complexity of requirement. On an average basic successful call
closure rates are INR 10 per call.

• Portal - An IT platform where agents can register and route calls/mails/chat/sms according to
their work plan calls assigned. The technology should be able to cater to large traffic and
ensure good voice quality.

• Support Infrastructure – In case agents do not possess requisite internet data connection,
they will be provided with allowances.

• Benefits

• More number of inquiries converted into orders

• Less number of calls being escalated
• Solution for seasonal business
• Hire only the required number of virtual call center agents
• Project cost elements

• Average cost – INR 7-10 lakhs

• Contact center infrastructure – INR 3-4 Lakhs. Cost may increase subject to
increase in number of orders received as call traffic will increase
• Agent verification, screening, skills set listing and training team

Case Study – Flatworld Solutions (Outsource to India) Bangalore 218

Provides hassle free and seamless outsourcing solutions. Several global customers have benefitted
by outsourcing their call center services to O2I.

218
OutsourcetoIndia, https://www.outsource2india.com/Clients/success_stories.asp
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Their multi-channel call center services have helped many small, midsized and large companies meet
their organizational needs. They follow a 5 stage outsourcing process to ensure that their services are
delivered on time at cost-effective rates.

1. Establish Contact
2. Requirement Analysis
3. Pricing and Contracting
4. Project Initiation
5. Project steady state
6. Successful project implementation

Problem

• Assist with challenges that had affected customer support operations because of the explosive
growth of the company.
• E-mail is an important medium of communication for this company as some of its customers
are based outside the US.
• Average speed of response to emails was slow, resulting in order cancellations and missed
sales opportunities.
Solution

• Within 4 days, a team set-up that could handle the e-mails in offshore center.
• The costs fell by 65% and the response time has gone from days to under 10 hours.
• This time of response is maintained through holidays and weekends, as they recognize that
different countries do not have the same work schedules or holidays.
• In order to cut costs in the voice portion of the business we launched a trial program. This trial
program has grown to handling over 5,000 calls per month by Outsource2india.
Result

• Outsource2india has been able to handle call volume, accurately, with minuscule
abandonment rates resulting in client's cost savings in tune of 40%

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Study on
Investment
Potential of Kerala-
Annexures

Kerala State Industrial Development

Corporation Ltd

30 October, 2017

KPMG.com/in

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Page 1 of 134
Contents

Annexure I - Demographic and Infrastructure Assessment .............................................................. 3

Annexure II - Detailed Industry Infrastructure Assessment .............................................................. 9
Annexure III - Central Government Support Schems/Policies ........................................................ 28
Annexure IV – District Profiling .......................................................................................................... 30
Thiruvananthapuram ................................................................................................................. 30
Kollam ......................................................................................................................................... 37
Pathanamthitta ........................................................................................................................... 44
Alappuzha ................................................................................................................................... 50
Kottayam ..................................................................................................................................... 57
Idukki ........................................................................................................................................... 64
Ernakulam ................................................................................................................................... 71
Thrissur ....................................................................................................................................... 79
Palakkad ...................................................................................................................................... 86
Malappuram ............................................................................................................................... 93
Kozhikode ................................................................................................................................. 100
Wayanad ................................................................................................................................... 107
Kannur ....................................................................................................................................... 114
Kasaragod ................................................................................................................................. 120
Annexure V – Brand Listing.............................................................................................................. 127

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Annexure I - Demographic and Infrastructure Assessment
Demographic Profile

Characteristic/Parameter Select Facts

Location Southern tip of India encompassing 1.18% of the total country area

Area 38863 sq. km

Climate Humid Tropical

• Coastal belt of 585 KM

• Western Ghats edging the eastern boundary of Kerala
Topography Features 1 • Hills and Deep Valleys surround the eastern border
• Central region endowed with Midland plains
• 44 rivers and 35 small rivers with canals linking the lakes and
backwaters facilitate a well-built inland navigation system

Total Population (census 2011) 3,34,06,061

Total Population (2015) 2 ~34,000,000

State with highest
Literacy Rate effective literacy rate of
Population
94% 3
Amongst top 10
Urbanization urbanized states in India
with an urban population
share of 47 7%
Working age population ~ 65%

Mineral Resource Profile

Characteristic/Parameter Select Facts

• Large scale mining activities confined to few minerals - Heavy

Mineral Sands, China Clay, Limestone, Silica Sand and Granite
Major Minerals 4
• Heavy mineral sand and China Clay contribute more than 90% of the
total value of mineral production in the State.

Amongst leading states in Country’s production of certain minerals

Mineral Production • Kaolin – 14.99%
• Minor Minerals 5 – 5.9%

Infrastructure Connectivity

1
Maps of India, State Profile of Kerala – MSME, Government of Kerala web portal
2
Assuming 0.5% growth rate every year from 2011 to 2015, India Guide
3
Census 2011
4
Department of Mining & Geology, Government of Kerala
5
Include building stones, gravel, ordinary clay, ordinary sand, limestone, bounder, kankar, murum, brick earth etc. – Definition Source:
Directorate of Geology and Mining
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 Gap Assessment in
Characteristic/Parameter Select Facts comparison to
Power bl / i hb i

2835.7 7 • Availability of power

4097.8 8 is the major concern
in starting up of
Thermal 718.49
industrial units
Installed Capacity (MW)) Hydro (Renewables) 2081.31 • Hydel and thermal
power generations
RES (MNRE) 34.88 account for the bulk
whereas wind and
Nuclear 228.6 solar power
• Kerala has higher
energy availability -
Actual energy
shortage in Kerala
was 0.5% against
anticipated shortage
of 14.2%
• Minimal energy
shortages compared
to Tamil Nadu,
Andhra Pradesh and
Power requirement and Karnataka
availability (MW) 9 • Shortages in Kerala -
0.3- 0.5% ; Tamil
Nadu and Andhra
Pradesh - 0.1-0.7%;
Karnataka - 5.2%
(Maximum in
Southern Region)

• Minimal private
sector participation
as compared to
Private Player 7.2% share of private sector in overall installed average share of
Participation in Power capacity. Gas-based and Renewable power 50% in Andhra
generation attracts private participation Pradesh and
Telangana,
Karnataka and Tamil
Nadu.
Power Consumption Domestic 51% • Maximum revenue

6
Southern region States; Karnataka (KN), Tamil Nadu (TN) and Andhra Pradesh (AP) are selected for comparison
7
Economic Review 2015
8
CEA, Capacity Including Allocated Shares in Joint & Central Sector Utilities (As on 31.08.2016)
9
CEA – LGBR 2016-17 (Including allocated shares in joint and central utilities)
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 Industrial and 27% collected from
Commercial Industrial segments
Other segments Public Lighting, followed by
agriculture, railway domestic and
tractions and others - commercial segment
22%

Water supply

Rainfall Average Rainfall 1290.8 32% deficient

(mm) 10

Ground Water • Quality of shallow

Availability and groundwater in
Requirement 11 Kerala is good
• Utilization of
available ground
water resource in
Kerala is 43.24 %

Others sources of • Surface water sources such as rivers, wells • Highest Open well
supply 12 sources like tanks, ponds, provide and density in the
drinking and water for irrigation country with 200
• Annual yield of all rivers in Kerala – 70303 wells per sq.km
mcm
• Utilizable yield of approx. 60%

Road

Infrastructure Spread Total length of State 4310 km • State government

Highways priority to develop
Total length of 1600 km national highways to
National Highways 45 m width

Surface Road 57.5%

Coverage (%)
13

10
Meteorological Centre Thiruvananthapuram – Season’s Rainfall (June – Sep 2016)
11
Central Ground Water Board
12
ENVIS Centre – Kerala, Economic Review 2015
13
MOSPI Infrastructure Statistics – 2014-15
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Road density 14 • Density per 1000 sq.km - 5543 • Comparatively better
• National Average – 1206.29 placed than most
• Density per 1000 population – 6.19 other States, as
regards road length,
• National Average – 3.28
the condition of
many of these roads
are not satisfactory
• Roads not able to
13 t t t ffi
Road Traffic • Registered Motor Vehicles per 1000 • Scattered pattern of
population – 198.07 urbanization a
challenge for Kerala
• National Average - 132

Railways
Infrastructure Spread • Total railway route - 1257 km • Thiruvananthapuram
Division - Largest
coaching division of
Southern Railway
with holding
capacity of 1572
Rail Density16 • Density per 1000 sq. km – 27 • In terms of rail
• National average - 20 density, Kerala has
• Density per 1000 population – 0.03 performed better
that national
• National average – 0.05
average.

New Projects • Suburban train services in • Government’s

Thiruvananthapuram – Chengannur increased efforts in
/Harippad sector establishing railway
• Kochi metro project sector – High- speed
• Light metro rail project - Planned to be rail corridor project
implemented in the cities of under
Thiruvananthapuram and Kozhikode conceptualization

Gas pipelines

Infrastructure Spread • 1 Operational Gas Pipeline - Kochi- • Well-connected gas

Koottanad- Bangalore-Mangalore (Part of pipeline network –
the 1104 km with 16 MMSCMD capacity is KG D6 Basin
still under construction) Network and
• 1 City Gas Distribution (CGD) Network EWPL17 to cater to
authorized in Ernakulam district requirements of AP
(Geographical Area). Expected to start & Telangana
operations in 2016 • CGD networks
across 3
geographical areas
in Andhra Pradesh
and Telangana

14
Economic Review 2015 –State Planning Board
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Air transport
Infrastructure Spread • Operational airports – Kochi, • Kochi airport setup
Thiruvananthapuram and Kozhikode in PPP mode
• 1 planned airport at Kannur • Key mode of
transport catering to
the Tourism sector
• Cochin Airport – First
airport to be
powered completely
Ports

Infrastructure Spread • Major port is Cochin amongst 12 major • Among the major
ports of the country ports, Cochin port
• 17 minor ports handled a mere
3.71% of all-India
major ports cargo
traffic.
• Minor ports are
underdeveloped
Solarization of Ports • Project underway in 7 ports
• Currently no project
conceptualized for
Cochin port
• Andhra Pradesh -
Vishakhapatnam
(Project
commissioning
stage) Tuticorin (RFP
Port Traffic • AP
• 5.38% increase in port traffic during Apr- (Vishakhapatnam)
Aug16 period over last year.
– 10.82% increase
• TN(Chennai) –
0.6% increase
• TN (V.O.
Chidambaranar) –
0.19% increase
• KN (New
Mangalore) -
1.58% decrease

Digital and Telecommunication

Subscriber Base • 1.94% 15 growth in (Wireless+ Wireline ) • Kerala has the

Subscriber base highest tele-
density, also the
highest penetration
of optic fibre cable
in the country

Urban Infrastructure • Wireless Urban Tele-density 211

• Wireline Urban Tele-density 9.33

15
http://www.trai.gov.in/WriteReadData/PIRReport/Documents/Indicator_Report_05_August_2016.pdf
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 • Internet/Broadband Subscribers per 100 99.6
population

Rural Infrastructure • Wireless Rural Tele-density 56.8

• Wireline Rural Tele-density 5.44
• Internet/Broadband subscribers per 100 20.84
population

Source: Economic Review, Infrastructure Statistics 2014, KPMG in India Analysis based on market research

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Annexure II - Detailed Industry Infrastructure Assessment

1. Kerala Industrial Infrastructure Development Corporation (KINFRA) 16

Development of infrastructure reflects the strength of industrial development of a nation. In order

to create such an atmosphere, the State Government established Kerala Industrial Infrastructure
Development Corporation (KINFRA) in 1993. The corporation focuses on industrial infrastructure
development by setting up industrial parks, townships, zones etc. KINFRA offers various
facilities like developed land or built up space, dedicated power, continuous water supply,
communication facilities etc., in addition to supporting social infrastructure facilities like bank,
post office etc. KINFRA has also implemented a Single Window Clearance system in all the
Parks. As per economic review 2015, on September 2015, there were 637 industrial units started
in the various Industrial Parks with total investment of₹1486.50 crore. The direct employment
generated were close to 25,754.

Apparel and Textile Parks

1. KINFRA Textile Centre, Thaliparamba
District: Kannur
Year of Commencement: 2009
Investment (Rs. in Lakhs) - 1282.2
Number of people employed: 1145
Thrust Total Total Land Nearest Nearest Nearest Nearest Seaport
Area Area Number Availability Airport Railway Highway
of Units Station

Apparel 124.85 15 82 acres of Kozhikode Kannur NH-47, 2.5 Kochi Seaport

acres Land International Railway km (ICTT) -200 km,
available airport Station, Mangalore Port-
for 180km 14km 70km
allotment

Facilities offered: Standard Design Factory, Hazardous waste disposal facility, Common dye house,
Health center, and Nursery, Effluent Treatment Plant, Power and water distribution, Single window
Clearance facility

Location Advantage: Kannur is the land of handloom that conquered global markets, especially in
the home furnishing segment. Due to quality of raw material, and entrepreneurial spirit, northern
district of Kerala assert its supremacy in handloom exports.

Description: It will boost the textile industry in the district which has a target of valuating exports
worth Rs 1000 crore. KINFRA would provide a “walk in and manufacture” environment to
entrepreneurs in the textile and textile-related industries sector. The Textile Centre will have a
bonded warehouse which will facilitate exports and avoid delays.

With the Supreme Court tightening the norms on environmental pollution, many units in the
districts were finding it difficult to survive as the cost of setting up and running a full-fledged
effluent treatment plant for a single unit would ruin them. Some of them were even facing closure.
Several such units are relocating to the Centre.

Funding: The Textile Centre is set up at a cost of Rs 45 crore, of which the State government’s
contribution was Rs 20 crore.

16
http://kinfra.org/parks
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Infrastructure offered: The Centre has laid a 9 km pipeline to ensure availability of water. The
Centre has also set up a nursery, dispensary and an ambulance unit for the employees of the units
in the centre. The park is set up on 124 acres, of which 94 acres are allocable land for industrial
purpose and 30 acres of land has been reserved for setting up weaving units.

2. KINFRA International Apparel Park, Thumba

District: Thiruvananthapuram
Year of Commencement: 2000
Investment (Rs. in Lakhs): 3982.15
Number of people employed: 1549

Land Nearest Nearest

Total Availabilit Nearest Airport Nearest Railway
Thrust Area Highwa Seapor
Area y Station
y t
Apparel 90 6 acres for Thiruvananthapura Thiruvananthapura NH47 Kochi
Manufacturin acres Garment/ m International m Central Railway 2.5 KM Seaport
g Apparel Airport, 19km Station, 14km (ICTT) :
Sector 200km

Facilities offered: Common bonded warehouse, Health centres, Banking, Effluent Treatment Plant,
Power and water distribution, Single window Clearance facility

Location Advantage: Potentials for exporting textile as Vizhinjam International Seaport is under
construction

Description: It hosts garment manufacturing units that employs women and operation of high
technology companies that make products ranging from heart valves to solar lamps. It also trains
top fashion designers and technologists. The park today hosts garments manufacturing units by
the Bombay Rayons Fashion Limited, which employs more than 2500 people at its facility. The
company provides subsidised transportation to the women employees. Apart from full-time
students, the centre also trains candidates sent in by local self-governments and self-help groups.
Inside the park, entrepreneurs can avail developed land. The land is developed in all respects
with easy Nearest Highway accessibility, LT/HT supply, water connection, and communication
facilities. The eco-friendly park has an effluent treatment plant and facilities for hazardous waste
disposal.

Funding: Government provided capital subsidy up to 25% of the Fixed Capital Investment (FCI)
(with a ceiling of Rs.2.5 million) and subsidy up to 15% of the cost of the installation (with a
ceiling of Rs.0.5 million) for captive consumption.

Infrastructure offered: It is established in 90 acres of land with allocable area of 36 acres and is
specifically developed for garment industry.

Export Promotion Parks

3. KINFRA Export Promotion Industrial Park, Kakkanad
District: Kochi
Year of Commencement: 1996
Investment (Rs. in Lakhs): 12156.85
Number of people employed: 763

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 Nearest
Land Nearest
Thrust Area Total Nearest Railway Nearest Seaport
Availability Highway
Area Airport Station
Manufacturing 281 Land Kochi Ernakulam NH-47 2.5 Kochi Seaport,
Engineering acres available not International Central km (ICTT), 30 km
allotment for Airport, 23 Railway
km Station, 14 km

Facilities offered: Common bonded warehouse, Health center, Power and water distribution, Single
window Clearance facility

Location Advantage: Many large and medium scale industries and organization are being
established here at a faster pace, giving city a versatile commercial mapping. International
Container Transshipment terminal and Cochin Shipyard Limited, Kochi Refineries Ltd, Info park
are other landmarks that makes Kochi’s advantageous.

Description: Bash-P International, a unit in the KINFRA Park, Kakkanad, is the first Indian company
to produce container handling equipment, which have an increased potential as the Vallarpadam
International Container Transshipment terminal becoming operational. Bash-P International
manufactures and distributors marine safety equipment for the burgeoning Indian market. It is the
hub for international marketing. International Container Transshipment Container Terminal at
Vallarpadam taking off and the Cochin Shipyard Limited has started manufacturing steel chains for
cranes, the Indian company to do so. Kera fibretex has grown to become one of the largest
manufacturers of coir-based product.

Funding: The total investment in the park is estimated to be Rs 2000 crore.

Infrastructure offered: The Park has a 45 mVA power station. The Brahmapuram diesel power plant
on the vicinity proves power protection to the park. The park has its own power distribution system
which ensures that the units are provided with uninterrupted and quality power all the time. The
overhead water tank of 6.5 MLD capacity takes care of the water needs of the park.

Film and Video Parks

4. KINFRA Film & Video Park, Kazhakkuttom
District: Thiruvananthapuram
Year of Commencement: 2007

Land
Thrust Total Nearest Railway Nearest Nearest
Availabilit Nearest Airport
Area Area Station Highway Seaport
y
Film, 75 acres 5 acres Thiruvananthapuram Thiruvananthapuram NH47 2.5 km Kochi
Animation, International Airport, Central Railway Station, Seaport
IT, ITES 11km 16km (ICTT) :
200km

Facilities offered: Incubation Center for Animation and Gaming Units in SEZ, Motion Capture Studio,
Power and water distribution, Single window Clearance facility

Description: A world-class animation school will be established inside the park. The idea is to set up
the animation school as a three-way joint venture that involves KINFRA, an international animation
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school and a player from the animation industry.

Funding: With Rs 20-crore investment by KSIDC, KINFRA Film and Video Park is seeking investors for the
other facilities.

Infrastructure offered: Setting up of Special animation zone in animation studio will be located in a
separate building and will offer its occupants all basic infrastructure such as power, water air-
conditioning and so on.

Food Processing Zone

1. KINFRA Techno Industrial Park, Malappuram
District: Malappuram
Year of Commencement: 2000
Investment (Rs. in Lakhs): 11648.50
Number of people employed: 4386

Thrust Area Total Total Land Nearest Nearest Nearest Nearest

Area Number Availability Airport Railway Highway Seaport
of Units Station
Food 72 acres 19 Land available Kozhikode Kozhikode NH-47 Kochi Seaport
Processing, for allotment inInternational Railway (ICTT) : 200km
Garment SEZ for Food Airport,19 km Station, 46km
Manufacturing Processing
IT

Facilities offered: Special Economic Zone for Food Processing, Food Incubation facility, Quality Control
Laboratory, Common bonded warehouse, Banking, Effluent Treatment Plant, Power and water
distribution, Single window Clearance facility.

Location advantage: A clean environment, availability of quality raw material in the local market and
large pool of human resource.

Description: It is an initiative that aims at creating massive employment, encouraging

entrepreneurship and promoting local agriculture and economy. In this process, they create large
number of jobs and support the local economy.
It caters to fruits and vegetables processing industries, milk products, poultry and meat products,
and the grain-processing industry. The Park hosts several food processing units including Parison
Foods, which is the largest edible oil refining unit in Kerala, Foster Foods, Midwest Foods Limited,
M57erry Times Foods and Falcon. Some other units produce ready-to-cook and ready-to-eat food
products which are either distributed in the home market or are exported.
It has made the most of the advantages Kerala has in food processing industry: a clean environment,
availability of quality raw material in the local market and large pool of human resource. The Central
Warehousing Corporation is setting up a cold storage facility in the park and a quality assurance lab.

Funding: The Park, developed at a cost of Rs. 19.50 crore with an assistance of Rs 4 crore from the
Union Ministry of Food Processing.
Infrastructure offered: Midwest Foods is one such unit at the Park, sourced technology from Defence
Foods Research Laboratory and the Central Food Technological Research Institute for making products
such as chapatti with long shelf life.

2. KINFRA Food Processing Park, Kakkanchery

District: Malappuram
Year of Commencement: 2003

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 Investment (Rs. in Lakhs): 1164.08
Number of people employed: 809

The Neo Space at the KINFRA Park, Kakkancherry is unique in that it is the first major IT infrastructure
in the Malabar region, providing facilities which include Software Development, Business Process
Outsourcing, Web Development, IT enabled services, KPO and Animation. Cybrosis Techno Solutions
Pvt Limited are into software products and R&D, a rare feat for a start-up company. They have filed six
patents in the last six months.

3. KINFRA Industrial Park, Nellad

District: Ernakulam

Thrust Area Total Land Nearest Nearest Nearest Nearest

Area Availability Airport Railway Highway Seaport
Station
Food processing, 64.89 No allocable Kochi Ernakulam NH-49 2.5 Kochi Seaport
manufacturing acres land available International Junction RailwayKM (ICTT) : 39km
Airport, 29km Station, 34km

Facilities offered: Cold storage, Standard Design Facility, Effluent Treatment Plant, Power and
water distribution, Single window Clearance facility

Description: Units at the KINFRA food processing and small scale industrial park at Nellad serve
a range of customers, varying from the local population to the premium US customers of
value added products. It meets every global standards in food processing, be it the production
plant, quality control, raw material, or even the campus. In the process, they have changed the
economy of the region.
Dhatri brand has set up its R&D centre at the park. The company has till now launched close to a
dozen products from the work that has been happening at the centre.

Infrastructure offered: The park, set up in an area of 65 acres of land under the Integrated
Infrastructure Development Scheme of the Centre, has promoted small industrial as well as food
processing units. The companies are mostly in the sectors as diverse as manufacturing, polymers,
ayurveda, herbal extracts and agro-based units. Around 30 acre of the park has been earmarked
for projects in the food processing sector alone. The village which did not have a single bank has
now branches of five nationalized banks.
The park has an effluent treatment plant which uses a common drainage system to collect
effluents with a full capacity of 400 cubic metres per day. It also offers infrastructure facilities
such as water, power and developed land. It has a cold storage which has a capacity of 50 tonnes,
and can be expanded to 250 tonnes.

4. Mega Food Park, Palakkad

Location: Palakkad
Key Focus Area:
Agriculture

KINFRA has identified 73 acres of land in Palakkad District for developing infrastructure facilities for
Food Processing as well as Agro- based industries. The proposed project will be implemented
under the Mega Food Park Scheme of Ministry of Food Processing Industries (MFPI). It cater to
marine food processing sector with common infrastructure facilities such as cold storage, standard
design factory, ice plant, and reefer vehicles etc. The park will also cater to units engaged in
production of value-added products from coconuts, spices, fruits and vegetables, paddy, cashews
etc.
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Location advantage: Palakkad is a land where agriculture and industry are equally good.The
project has the locational and economical advantages being located in the state with proximity
to sea port, rail connectivity and airport.

Hi-Tech Parks
1. KINFRA Hi Tech Park, Kalamassery
District: Kochi
Year of Commencement: 2009
Investment (Rs. in Lakhs): 1903.25
Number of people employed: 335

Thrust Area Total Land Nearest Nearest Nearest Nearest

Area Availability Airport Railway Highway Seaport
Station

Hi-Tech non- 243 Acres of land Kochi Ernakulam NH47 1km Kochi Seaport
polluting acres available for Hi- International Town Railway (ICTT): 21km
Industry Tech Industries Airport, 20km Station, 18km

Facilities offered: Biotechnology Incubation Centre, SEZ for IT & ITES, SEZ for Electronics, Gem and
Jewelry Park, Power and water distribution, Single window Clearance facility

Description: The Park will house common equipment and facilities like greenhouse and hardening
facilities, tissue culture, analytical and QC laboratories and a patent facilitation centre. They
focus on Biotechnology, electronics hardware, gem and jewelry, education and on the special
economic zones.
Ubio Biotechnology Systems Pvt Ltd, a start-up company which is into various animal health
products, has already commenced operations at the Centre. The Nest group plans to make it a
world-class hardware manufacturing park utilizing Nest’s global experience in this sector. The
central public sector unit Bharat Electronics Limited is setting up a unit at the Park.

Infrastructure offered: The centre, spread over 50,000 sq. ft, can house 12 units. The park would also
have fully furnished R&D wet lab modules with provision for water, power and drainage. The IT and
ITES park is coming up on 25 acres and will be developed by Sutherland Global Services, a Nest group
company, is developing the special economic zone for electronics hardware.
It will have an eco-friendly, solar powered infrastructure. Construction of common facility building
as well as design work in respect of water supply and power supply facility have also been
completed.

2. KINFRA Defence Park

Location: Palakkad
Key Focus Area:
Defence

Defence has been identified as one of the sectors under “Make in India” initiative of Government
of India to provide a major thrust to in-house manufacturing of equipment’s and meet most of
the varied requirements of defence. In India, there is a 15% gap between demand and supply.
The defence park can bridge the gap apart from providing the country an opportunity in defence-
related export of products from small- and medium-sized enterprises. KINFRA has earmarked
40 acres of land for setting up Defence Park at Ottappalam. The project is intended to create
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a Defence Park with all modern common infrastructure facilities exclusive for the component
manufacturers of Defence Industry with Central Assistance from, Government of India.

Location Advantage: Ottappalam, in Palakkad, was selected for the defence park keeping in
view its strategic location as far as connectivity was concerned. Apart from common facilities
such as dedicated power and water supply, the park will have a research and development centre.

3. KINFRA Industrial Park

Location: Kannur
Key Focus Area: Industrial growth
The project ensures parallel development of industries in areas closer to the proposed airport
which could attract investors and entrepreneurs.

Location Advantage: Kannur has natural beaches, hill stations, rivers, backwaters, historical
monuments and religious centres. It is also well known for its handlooms cloths and Dinesh
Beedi, Rubco (rubber) are established there. The Western India Plywood’s, one of the biggest
wood based industrial complexes in South East Asia is located in Kannur.

Integrated Industrial and Textile Parks

1. KINFRA Integrated Industrial & Textile Parks, Palakkad

District: Palakkad
Year of Commencement: 2003
Investment (Rs. in Lakhs): 52749.44
Number of people employed: 4130

Thrust Area Total Total Land Nearest Nearest Nearest Nearest

Area Number Availability Airport Railway Highway Seaport
of Units Station

Manufacturing, 163.58 72 NA Kochi Palakkad NH47 2.5 Kochi Seaport

Textiles, acres International Railway km (ICTT) :160 km
Garment Airport, 140 Station, 27
General km, km,
Industries Coimbatore: Coimbatore:
40km 40km

Facilities offered: Power and water distribution, Single window Clearance facility

Location Advantage: Palakkad, a land where agriculture and industry thrive together, and is
located in the state with proximity to sea port, rail connectivity and airport, giving locational
advantage. The project site also has economical advantages being of Defence equipments, as
BEML (Bharat Earth Movers Ltd) has setup their plant in that area. The new complex of BEML at
Palakkad will be a dedicated Centre for the manufacture

Description: The KINFRA Park at Palakkad hosts the first major defence production unit in Kerala.
Rail coach assemblies such as bogie frames, side walls, end walls, rail coach bogie frames, HPB
(High Performance Bedding) aggregates, other rail parts and spares will also be manufactured
there. The State government has agreed to provide corridor land for rail connectivity to BEML
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for its rail manufacturing facility for underpass across national high way upon which complete
products such as LHB coaches, Mil-Wagons and aluminium and stainless steel goods-wagons. It
will also be a dedicated centre for the manufacture of defence equipment

Funding: The Central public sector unit plans a total investment of Rs 1,200 crore spread over
three years. KINFRA Integrated Industrial Area in Palakkad, Kerala, as part of its expansion and
diversification plan, with investment of around Rs. 260 crores.

Joint Venture Parks

1. WISE KINFRA Park, Palakkad

District: Palakkad

Thrust Total Total Nearest Airport Nearest Nearest Seaport

Area Area Number Highway
of Units

General 200 acres24 Thiruvananthapuram NH47 2.5 km Kochi Seaport (ICTT): 200
Industries International Airport km

Facilities offered: Power, Water

Location Advantage: The Palakkad District has attracted industrial investments from MNC's,
Public Sector and Private and small scale and tiny industrial units engaged in metallurgical,
milling, hand looms etc. Pepsi-Cola, Tread and Tyres, Malabar Cements Ltd. etc. are a few major
companies. Also abundant availability of man power.

Description: Self-contained with Industrial and Social Infrastructure and has all the facilities that a
business needs. It is a Public- Private enterprise with Government support and private initiative
and efficiency.

Infrastructure offered: Good quality ground water, Bonded warehousing facility, Banks, Post
Office, Business Centres, good Drainage system etc.

2. KINFRA Seafood Park, Aroor

District: Alappuzha

Thrust Area Total Land Nearest Airport Nearest Nearest Nearest

Area Availability Railway Highway Seaport
Station
A Joint Venture4 acres NA Thiruvananthapuram NA NH47 2.5 km Kochi
of KINFRA, International Airport Seaport
MPEDA and Sea (ICTT) : 200
Food Exporters km
Association

Facilities offered: Quality Control Labs, Pre Processing Centres, and Effluent Treatment Plant

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 3. KINFRA Rubber Park, Irapuram
District: Ernakulam

Thrust Area Total Total Land Nearest Nearest Nearest Nearest

Area Number Availability Airport Railway Highway Seaport
of Units Station
Rubber 105 6 NA Kochi Ernakulam 5 km Kochi
Processing, acres International railway station : Seapor
Manufacturing Airport : 25 15 KM , (ICTT) : 15km
KM

Facilities offered: Research and certification center, Power distribution license, Convention Center,
Effluent Treatment Park and Total waste management

Description: It is a Joint Venture Company of Govt. of India and Govt. of Kerala, set up with the
objective of powering the progress of Rubber based industries in India.

Infrastructure offered: Power is given on a prepaid automatic metering system using power line
communication. Effluent treatment and waste management is available. Park is equipped with
good rain water harvesting system.

4. KINFRA Park, Seethangoli

District: Kasaragod
Year of Commencement:
2002 Investment (Rs. in
Lakhs): 7971.27 Number
of people employed:
1443

Thrust Area Total Total Land Nearest Nearest Nearest Nearest

Area Number Availability Airport Railway Highway Seaport
of Units Station
Manufacturing 270 acres30 NA Calicut Kasaragod NH-47 7.5Kochi
International Railway km Seaport
Airport- 30km,Station- 14km (ICTT):
Mangalore 300 km,
Airport-70km Mangalore
Port: 70 km

Facilities offered: Power and water distribution, Single window Clearance facility

Location Advantage: Availability of land, water and power

Description: The strategic electronics manufacturing unit is the second defence establishment to
be established in Kerala. BrahMos Aerospace, under the Defence Ministry, had taken over Kerala
Hitech Ltd, a State public sector enterprise, giving a boost to Central investment in the State. The
facility would be expanded to include new projects under the aircraft programs and converted
into a full-fledged division manufacturing systems and sub-systems for various aircraft. Kamat
Industrial Oil, another unit in the KINFRA park, converts and industrial byproduct into a useful
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product. It makes uses of the cashew shells and producing double refined oil which can be a raw
material for industrial paints. Eco Asia, another unit, produces quality products for the industry
out of the raw material. Srinivasa Majakar, who has set up the Eco Asia unit which makes palm leafs
into various industrial products. The unit helps society in two ways: it pays the farmers for a
products that seldom fetch them an income, and makes products that are so needed by society.
It also provides an effective way of replacing plastics.

Funding: The initial investment for the project would be Rs.66.31 crore.

5. KINFRA Industrial Park, Kalpetta

District Name: Wayanad
Year of Commencement: 2005
Investment (Rs. in Lakhs):
5842.37
Number of people employed:
597

Thrust Area Total Area Land Nearest Nearest Nearest Nearest Seaport
Availability Airport Railway Highway
Station
Food Processing,50 acres 3 acres of Land Kozhikode Kozhikode NH-212, Kochi Seaport
Manufacturing, available for International Railway Station2.5 km (ICTT) : 300km
Furniture allotment Airport, 120km100km

Facilities offered: Exceptional Climate, Cold Storage, Power and water distribution, Single window
Clearance facility

Location Advantage: Agrarian richness, Pleasant climate, large production of Bananas.

Description: PD Joseph’s Safety Foods, one of the units in the park, uses raw bananas, as being
main agricultural products of the district, for the business which involves peeling the dry banana
and supplying in the market. Thus adding value addition. S M Mihraj, another unit, who has put
up a most modern soap and soap noodle factory, has a huge demand for the product as this is
the only industry which produces the product other than Unilever. The park also includes food
processing units and other furniture units.

6. KINFRA Industrial Park, Thalassery

District : Kannur
Year of Commencement: 2002
Investment (Rs. in Lakhs):
4194.14
Number of people employed:
1079

Thrust Area Total Land Nearest Nearest Nearest Nearest

Area Availability Airport Railway Highway Seaport
Station

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Manufacturing/ 50 acres 4 acres of LanKozhikode Thalassery NH-17 2KMKochi Seapor
Furniture available for International Railway (ICTT) : 300km
allotment Airport, 90km Station, 14km

Facilities offered: Power and water distribution

Location Advantage: Availability of rubber and other raw materials like fire glass, wood etc. and
proposed airport shall act as an advantage for Industrial parks in that location.

Description: The Thalassery park has units which has made raw materials such as rubber wood
a viable proposition. The dyeing and weaving unit is another major unit at the park. Parco, a unit
in the park, is the only company in south India capable of making an entire suit of kitchen and
bakery equipment. The Rubco factory at the Park has given a new lease of life to rubber wood,
which was till found use only as firewood. Today, treated rubber wood is being made into
furniture.

7. KINFRA Industrial Park, Kunnamthanam

District Name: Pathanamthitta
Year of Commencement: 2009
Investment (Rs. in Lakhs): 3010.03
Number of people employed: 458

Thrust Total Total Land Availability Nearest Nearest Nearest Nearest

Area Area Number Airport Railway Highway Seaport
of Units Station

General Non 39 acres21 16.42 acres of land Thiruvanan- ThiruvallaNH-47 7.5 Kochi
polluting available for Generalthapuram Railway km Seaport
Industries Sector International Station- (ICTT) :
Airport – 100 4km 100km
km

Facilities offered: Power, water, single window clearance facility

8. KINFRA Industrial Park, Koratty

District Name: Thrissur
Year of Commencement: 2011
Investment (Rs. in Lakhs): 225.5
Number of people employed: 65

Thrust Area Total Land Nearest Nearest Railway Nearest Nearest

Area Availabilit Airport Station Highway Seaport
General Non- 33 acresLand not Kochi Angamaly RailwayNH-49 Kochi Seaport
polluting available forInternational Station, 9km International
Industries. allotment Airport, 18km Container
Transhipment
Terminal : 39km
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Facilities offered: Standard Design Facility, Ayurveda Facility, Post office, Power and water
distribution, Single window Clearance facility

9. KINFRA Food Industrial Park, Adoor

District Name: Pathanamthitta
Year of Commencement: 2009
Investment (Rs. in Lakhs):
5961.96
Number of people employed:
670

Thrust Area Total Total Nearest Airport Nearest Nearest Nearest Seaport
Area Numbe Railway Highway
r of Station
Units
Food 85 acres 16 Thiruvananthapuram Thiruvalla MC Road- Kochi Seaport
Processing/ International Airport, Railway 47 International
General Non 100km Station, 25km Container
polluting Transhipment
Industries. Terminal : 100 km

Facilities offered: Power, water, Single window clearance facility.

2. Small Industries Development Corporation

The main objective of SIDCO is for the development and promotion for Small Scale Industries. Key
facilities offered by SIDCO are;
• Consultancy for identification of Industrial Site
• Commissioning or authorizing of project
• Providing infrastructure facilities
• Distributing essential raw materials
• Undertaking civil and electrical works

Apart from providing assistance to SSI units, SIDCO also offers various other services which
includes
• Factory Sheds & Developed land in all districts of Kerala
• Industrial Raw Materials through District Depots.
• Marketing assistance through District level Sales Emporia (i.e. a large retail store selling a
wide variety of goods)
• Non-Ferrous die cast component, precision machine parts and various types of furniture
through production units.

SIDCO is now a very profitable business and the business is augmenting in a faster pace. The
following shows the turnover of SIDCO of past years.

In the year 2014-15, Kerala SIDCO achieved the highest turnover among state Indian SIDCO’s with
a turnover of 37600 lakhs and it’s ever increasing. They did not experience any downfall in
turnover since 2007. SIDCO looks into various divisions for SSI units to invest in. The divisions are
mentioned as follows;

Marketing Division
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Marketing division deals in segments of steel/wooden furniture, office interior furnishing/modular
seating arrangements etc. They geared up to serve on a statewide basis with 17 sub offices in
almost all districts.

Raw material

They counsel, finance, protect and promote the interest of the MSME units in the state which
they do by providing steady uninterrupted supply of scarce, indigenous and imported raw
materials and also providing marketing assistance for their products. They are running 14 outlets
for the time bound supply of raw materials at nominal rate by ensuring quality. The major items
handled by the Raw Material division are paraffin wax, wire rode, Iron and steel, cement etc.
Industrial Estate Division

The concept of setting up of Industrial Park is to enable to concentrate dedicated infrastructure in

a delimited area and to enable new business. SIDCO has 17 major Industrial Estates and 36 Mini
Industrial Estates 923 industrial sheds. SIDCO has carried out many developmental works like
street lighting, internal road and providing water supply to the units in the Industrial Estates and
Mini Industrial Estates.
Production Division

SIDCO has 9 production units spread all over Kerala and are direct manufactures of some items
through these Production Units. The main customers are Government Departments, Public Sector
undertakings and other Government agencies and general public.

Construction Division

The construction Division has been undertaking civil or electrical works of PSU and other
Departments. It offers a package of integrated services for Structural Design, Preparing Detailed
Estimate, Soil Investigation etc. Some projects which this division includes Coir Corporation,
Pollution Control Board, Interior Furnishing Works at Rajiv Gandhi Centre for Bio Technology.

IT and TC

This Division is provides software and hardware solutions to Government Departments, Public
Sector Undertakings, Local Self Government Bodies, Autonomous Institutions and SSI Units.
The major activities of the department identified for business are, Computer Hardware & Service,
Document Management Services, Consultancy, Training etc.

Industrial Park Division

This division is presently managing 7 Industrial Parks developed on its own, lying in various districts
of the state. They are;

1. Moodadi Industrial Park, Kozhikode

2. Thiruvarppu Industial Park, Kottayam
3. Angamally Industrial Park, Ernakulam
4. Shornur Industrial Park, Palakkad
5. Chelakkara Industrial Park, Thrissur
6. Athani Industrial Park, Thrissur
7. Kunnamthanam Industrial Park, Pathanamthitta

Consultancy Division

They primarily focused on meeting the prevalent need of the state to involve realistic and
implementable projects for various developmental sectors. They have right to accept or reject
any proposal after evaluating the eligibility criteria involving financial soundness, technical
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 capability.

Export, Import and Project Division

This division is created to undertake special projects like supply / installation of LED Street Lights,
High Security Number Plates etc. It is proposed to start IOC/ONGC Petro/Diesel Pumps at
Cherthala, Ollur, Kanichukulangara, Olavakkode, Pachalam and Ernakulam.

Trading Division

Trading division is one of the major divisions in Kerala SIDCO. It deals with promoting
manufactures by helping them in marketing their products. It offers its valuable brand name to
quality products produced by good manufacturers throughout the Country and help them to enter
into the markets of Kerala.

Training Division

KERALA SIDCO proposes to strengthen its training division in extending need based training
programmes. They are expected to handle active teaching strategies, learner-cantered instruction
etc.
Kerala Small Industries Development Corporation (SIDCO) provides infrastructure facilities such
as land, work shed, water, distribution of scarce raw materials to the units in the small scale
sector. There are 17 major industrial estates, which include 830 working units, under the
administrative control of SIDCO. These working units provided employment to nearly 7376 people
as on 31.03.2015. Besides, there are 36 mini industrial estates under SIDCO in which about 1303
employees are working in 289 units all over the State.
Details of Industrial Estates are;

3. Kerala State Industrial Development Corporation

KSIDC is the industrial and investment promotion agency for the promotion and development of

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medium and large scale units. KSIDC provides support for investors, introduces various incentive
schemes for the industries and facilitates interaction with the government. The key areas of they
focus on are:
1. Identification of Investment Ideas
2. Translating ideas into concrete proposals
3. Feasibility Study and Project Evaluation
4. Financial Structuring and Loan Syndication
5. Assisting in Central and State Govt. Clearances
6. Development and Administration of Growth Centers
7. Industrial and Infrastructure development

For the industrial growth centers, KSIDC has acquired land at four industrially backward locations
in the following districts;
1. Kannur
2. Kozhikode
3. Alappuzha

KSIDC also make sure basic infrastructural facilities such as road, water, power, telecommunication
etc. are available to these districts. The details of various growth centres have been discussed
below;

Industrial Growth Centre - Kannur

Location Advantage:
With the Western Ghats in the east and Arabian sea in the west, Kannur district is bounded by a
wealth of natural beauty. Kannur is well known for its handlooms cloths. Industries such as
Dinesh Beedi, Rubco and Western India Plywood are successfully operating. The Industrial
Growth Centre is well connected to the State highway which is 6 km away, and has got close
proximity to Mysore, Mangalore and Bangalore. Also, the proposed Kannur Airport is only
within a distance of 20 kms which gives an additional advantage. The proposed Gas pipeline
from the LNG terminal at Kochi connecting Mangalore will open up tremendous opportunities for
Gas based power and other projects. A new gas based thermal power plant with 1200 MW
capacity at Cheemeni, in Kasaragod district will ensure adequate power availability. The Azhikkal
Port at Kannur and Ezhimala Naval Academy are projects that put Kannur in the global marine
map.

Infrastructures Availability: Infrastructure which shall be available to the Growth centre includes;

• Sources of Water shall include Intake well, Pipelines, Overhead tank, Water Treatment Plant,
DG set and pumping station.
• Roads will be having an internal road of length of around 2 kms within the Growth Centre.
• Building with supporting facilities like canteen, nursery, security cabin & first aid room.
• Power
• Communication which shall include both telephone & Internet connectivity.
• Effluent treatment Plant which is been commissioned exclusively for the apparel units

New Initiatives:

1 KSIDC is also looking into other initiatives to make growth centres better. These includes;
2 Setting up of a Working women's hostel with all supporting facilities.

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 3 Rain water harvesting inside the Park is under consideration for alternative water source.

Industrial Growth Centre – Kozhikode

Location Advantage: Kozhikode offers tremendous opportunity for the entire Malabar region to
prosper. Some mega projects which are triggered to make the region advantageous include,
Beypore Port development, Revival of Malabar Spinning Mill, SAIL-Steel complex Joint Venture,
Knowledge Park of KINFRA, Expansion of Kozhikode International Airport, Cyber Park at
Nellikode, Cochin Industrial Rail Corridor to Mangalore, Coconut Park at Kuttiady, The Techno
Industrial Park (NEO Space) of KINFRA at Kakkancherry, NIRDESH (National Institute for Research
& Development in Defence Shipbuilding) by the Ministry of Defence,

Infrastructures Available: Infrastructure which shall be available to the Growth centre includes;
• Sources of Water shall include Natural Pond, Pipelines, Overhead Water tank, 1.5 MLD
(million liters per day) capacity Water Treatment Plant, Motors and pumping station.
• Power supply by KSEB.
• Roads having internal length of 1.1 kms
• Communication facilities shall include both Telephone & Internet connectivity.
• 630 KVA transformer installed at SDF.
New Initiatives: Few initiatives from KSIDC includes;
1. Food Processing Park - to tap the very active local market with vibrant retail chain.
2. Hi-Tech Park - to promote industries in segments such as Consumer Electronics,
Industrial Electronics, Computers, Communication & Broadcasting equipments, strategic
electronics and electronic components IT, ITES etc..
3. Defence Park - to tap the opportunities that come out of NIRDESH (National Institute for
Research and Development in Shipbuilding) and set up to design and develop technologies
for shipbuilding.
4. General Purpose industrial park - to promote the local industry such as furniture, carton
adhesive, tiles etc.

Industrial Growth Centre – Alappuzha

Location Advantage:
Alappuzha excels in the export of marine foods products and coir products. It has got all the
basic infrastructure facilities and good water and rail connectivity. The growth centre is only
about 32 kms away from Kochi which offers tremendous opportunities for the investors.

The expansion of IT park by Kerala State IT Infrastructure Ltd (KSITIL) inside the growth centre,
new tourism venture at KCCL , expansion of CSEZ (Cochin Special Economic Zone) / ordnance
factory at Pallipuram, are some of the proposed major projects in the district.

Infrastructures Available:
1. Water connectivity provided by KWA
2. Power supply by KSEB.
3. Internal Roads with a length of 15 Mts within the Growth Centre
4. Communication shall include both Telephone & Internet connectivity.
5. Single Window Clearance Support for obtaining various licences.
6.
New Initiatives
• IT park in 66.20 acres of land by Kerala State IT Infrastructure Ltd (KSITIL)., Trivandrum

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 • Expansion CSEZ / Ordinance factory

Electronic Hub – Ernakulam

Project objective
Aim to promote manufacturing and assembly of electronic hardware and would also include a
research and development unit.
Facilities
World-class facilities for manufacturing, contract manufacturing, R&D and fabrication units in the
electronics sector.
Project Status
The project development is in progress and hope to finish the land acquisition within two years
after which infrastructure development work would be started. In the first phase, 50 incubation
units are planned to be set up.

Mega Food Park – Cherthala 17

Project objective
Aim to exclusively cater to marine food processing sector with common infrastructure facilities
Facilities
Common infrastructure facilities include cold storage, standard design factory, ice plant, reefer
vehicles etc.
Project Status
The project is expected to bring in an investment of INR 500 crore in three years and is likely to
employ 3,000 persons and provide indirect jobs to 12,000. The project is awaiting final clearance
from MOFPI post submission of Detailed Project Report 18.

4. Directorate of Industries and Commerce (DIC)

Directorate of Industries and Commerce (DIC) acts as a facilitator for industrial promotion and
sustainability of MSME sector and traditional industrial sector in the State with the help of other
directorates like Directorates of Handloom & Textiles, Directorate of Coir and Khadi & Village
Industries Board.

The major functions performed are:

• Facilitating sustained industrial development.
• Creating and extending infrastructural requirement for the development of industries.
• Promoting Entrepreneurship.

A total amount of INR 2374 Crore have been provided for the development of Industry and
Minerals, during the first four years of 12th plan (2012-17).

Vision

To make Kerala a highly sustainable economic growth, which could be achieved from
industrialization and profusion of commercial activities. They also plan to create large-scale
employment opportunities and converting Kerala into an investment friendly destination.

Objectives

Some of the objectives of DIC Kerala are;

17
http://www.projectstoday.com/News/Kerala-plans-mega-food-parks
18
http://www.thehindu.com/news/national/kerala/central-approval-awaited-for-mega-food-park-at-cherthala/article7472578.ece
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 • Strengthen the State Level Public Enterprises
• Promote and support MSMEs
• Make Traditional Industries competitive by modernization, value addition and skill
development.
• Attract huge capital investment on mutually beneficial terms.
• Accelerate growth in Service Sector.
• Develop Kerala as a global centre of excellence.

Industrial Development Plot / Areas

At present there are 37 Development Area / Development Plots under DIC having a total acquired
area of 9.19 square kms. DIC experienced a fall of approx. 17.4% in total number of units in DA/DPs
form 2176 in the year 2013-14 to 1797 units in 2014-15.

Sl.N Name of Industrial Area Total Allocable Area Total Allotted Total Total
o (Sq.KM) Area (Sq.km) registered Operating
units Units
1 Thiruvananthapuram
DA Veli 0.36 0.36 169 126
DP Manvila 0.09 0.09 74 66
2 Kollam
DP Mundakkal 0.07 0.07 53 50
DP Chathanoor 0.07 0.06 1 0
3 Pathanamthitta
DP Kunnamthanam 0.06 0.06 79 64
4 Alappuzha
DA Kollakadavu 0.06 0.06 44 38
DP Chegannur 0.02 0.02 17 17
DP Punnapra 0.13 0.09 72 58
Coir Park 1 Cherthala 0.09 0.09 10 8
Coir Park 2 Cherthala 0.07 0.07 4 3
DA Aroor 0.22 0.22 99 98
5 Kottayam
DP Poovanthuruthu 0.15 0.15 219 216
DP Athirampuzha 0.00 0.00 10 10
DP Vaikom 0.01 0.01 13 12
6 Idukki
DP Muttom 0.02 0.02 13 10
7 Ernakulam
DA Aluva 0.22 0.22 88 86
DA Edayar 1.52 1.52 356 340
DA Angamaly 0.87 0.87 48 47
DA Vazhakulam 0.05 0.05 42 40
DP Angamaly 0.11 0.11 65 60
DP Kalamassery 0.26 0.26 186 178
8 Thrissur
DP Athani 0.18 0.18 86 78
DP Kunnamkulam 0.01 0.01 26 23
DP Ayyankunnu 0.10 0.10 88 68
DP Velakkode 0.09 0.09 37 28
9 Palakkad
DP Puthussery 0.53 0.53 64 61

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 NIDA Kanjikode 2.08 2.08 262 235
D.P. Kappur 0.07 0.06 29 13
D.P.Shornur 0.07 0.03 2 2
10 Malappuram
Functional Industrial 0.03 0.02 26 25
Estate Manjeri
11 Kozhikode
DP Westhill 0.04 0.04 37 34
12 Kannur
DP Andoor 0.19 0.19 166 150
13 Kasaragod
DP Ananthapuram 0.30 0.22 57 12
DA Ananthapuram 0.35 0.27 24 nil
DP Chattanchel 0.09 0.08 23 13
Total 8.21 8.29 2104 1797

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Annexure III - Central Government Support Schems/Policies

List of major schemes/grants/aids of central government available for various sectors.

Schemes Sector/Subsector Description

Pradhan Mantri Krishi Improving farm productivity
Sinchai Yojana (PMKSY) and ensure better utilisation
of resources. An area of
0.285 Lakhs Sq.KM cultivable
land are planned to be
brought under this scheme
Soil Health Card (SHC) for The soil health card scheme
India Farmers studies and reviews the
health of soil or rather we
can say a complete
evaluation of the quality of
soil right from its functional
characteristics, to water and
nutrients content and other
biological properties. The
farmers will get a report on
the soil which is chosen for
cultivation. Experts will
guide the farmers to improve
the quality of the soil. Till
August 2016, 267 Lakhs SHC
has been issued.
Rashtriya Gokul Mission RGK is a focused project
(RGK) under National Programme
for Bovine Breeding and
Dairy Development, with an
outlay of Rs 500 crore
during the 12th Five Year
Plan.
Funding Pattern:- Scheme
is implemented on 100%
grant-in- aid basis
Beneficiaries: Rural cattle
and buffalo keepers
National Mission for Primary objective is to
Sustainable Agriculture ensure food security and
(NMSA) protect various resources
such as land, water,
biodiversity and genetic
resources along with facing
challenges and threats such
as climate change
Pradhan Manthri Fasal Motto of the scheme is to
Bhima Yojana (PMFBY) provide overall support

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 agriculture sector.
It facilitates Financial support
to farmers for crop loss due
to natural calamity,
stabilizing the income of
farmers, encouraging
farmers in using modern
agricultural practices and
ensuring flow of credit to the
agriculture sector; which will
contribute to food security

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Annexure IV – District Profiling

Thiruvananthapuram

District at a glance

Total Geographical 2,192 Km2

area
Population 33,07,284
Nearest Railway Trivandrum Central ( 2 Km), Trivandrum Pettah (5 Km)
Station
Nearest airport Thiruvananthapuram International Airport (7 Km)
Major Exports Handloom Products, Handicrafts, Software products
Key Institutions Techno park, Indian Space Research Organization, Rajiv Gandhi
Centre for Biotechnology, Indian Institute of Science Education &
Research, National Institute for Interdisciplinary Science &
Technology, HLL Lifecare Limited, BrahMos Aerospace
Limited, Central Tuber Crops Research Institute, Tropical Botanic
Garden & Research Institute, Sri Chitra Tirunal Institute for Medical
Sciences & Technology, Regional Cancer Centre, Trivandrum
Medical College, College of Engineering Trivandrum, Centre for
Development Studies.
Major Crops Rice, Coconut, Sesamum, Arecanut, Tapioca
Industrial parks Special Economic Zones - Technopark (IT/ITES)
KINFRA International Apparel Park at Thumba
Film and Video Park at Kazhakoottam
Industrial Cluster Handloom, Coir & Handicrafts.
Other Key factors IT hub of Kerala, contributing more than 80% of the State's
software exports

Administrative Set up

Particulars Numbers

Revenue Divisions 1
Taluks 6
Corporations 1
Municipalities 4
Gram Panchayat 73
Source: Department of Economics and Statistics

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)

Base year: 2004-05

Particulars INR in Lakhs % Contribution

1 Agriculture & Allied 378320
1.1 Agriculture 298119 6.80%

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 1.2 Forestry & Logging 41762 0.95%
1.3 Fishing 38440 0.88%
2 Mining and Quarrying 18917 0.43%
A TOTAL OF PRIMARY SECTOR 397237 9.06%
3 Manufacturing 327179 7.46%
3.1 Registered 146124
3.2 Un-registered 181055
4 Construction 500532 11.41%
5 Electricity, Gas and Water supply 98295 2.24%
5.1 Electricity 68606
5.2 Gas 632
5.3 Water supply 29056
B TOTAL OF SECONDARY SECTOR 926006 21.11%
6 Industry 944923
7 Transport, Storage & Comm. 557064 12.70%
7.1 Railways 8779
7.2 Transport by other means 442701
7.3 Storage 2083
7.4 Communication 103501
8 Trade, Hotel & Restaurants 667040 15.21%
9 Banking & Insurance 218369 4.98%
10 Real estate ownership, business ,legal 632262 14.41%
11 Public Administration 577630 13.17%
12 Other Services 410975 9.37%
C TOTAL OF TERTIARY SECTOR 3063340 69.83%
DDP 4386584
Mid-year Population 3319064
Per capita Income(in Rupees) 132163

GDDP - Thiruvananthapuram

Primary
Sector, 9%

Secondary
Sector, 21%

Tertiary
Sector,
70%

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

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Agriculture and Allied Activities

Land Utilization Pattern

Others, 176, 0%

Forest, 49861,
23%

Net area sown, Land put to non

129750, 59% agricultural use,
30396, 14%

Fallow other
than current
fallow, 660, 0%
Current fallow,
2986, 2%
Barren &
Still Water, uncultivable
4342, 2% land, 236, 0% Cultivable waste,
374, 0%

Land Utilization Pattern (Area in Hectare) - Thiruvananthapuram

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water Resource

Number of Rivers in the District 4

Number of Reservoirs 3
Reservoirs Water Spread Area (in Sq. Km) 23.40
Source: Report on Panchayat Level Statistics - 2011

Production of Mineral (2015-16)

Type Name of mineral Production (in tonnes)

Major mineral Granite Building Stone 2,804,768
Minor mineral China Clay 525,935
Sand 139,383
Laterite 23,533
Brick clay 15,000
Granite Dimension Stone 1,283
Source: Dept. Of Mining and Geology, District Profile of Kerala 2014 – 15 Report, Development commissioner
MSME, Govt. of India

Animal Husbandry

Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

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 Type Numbers
Cattle farms 549
Poultry farms for meat 323
Poultry farms for egg 111
Slaughter houses 246
Veterinary Institutions 431
Source: Department of Economics and Statistics, Report on Panchayat Level Statistics - 2011

Agriculture worker population (2010-11)

Other Workers, 44% Main Workers

Population, 50%

House hold Industry

Workers, 1%

Agricultural
Cultivators, 2%
Labourers, 3%

Source: Department of Economics and Statistics, Report on Panchayat Level Statistics - 2011

Industries

Overview of Industrial Sector (as on 31.03.2016)

Total number of Industrial units 31,277

Number of registered industrial unit 12,322
Number of registered medium and large units 13
Estimated avg. no. of daily worker employed in small scale industries (Per unit) 6
Employment generated in large and medium industries 973
No. of industrial area 2
Turnover of medium & large scale industries (in lakhs) 10,272
Source: District Industries Centre, Thiruvananthapuram,

Trend of Investment, Employment and Units registered (as on 31.03.2016)

60000

50000

40000

30000

20000

10000

NUMBER OF REGISTERED UNITS EMPLOYMENT INVESTMENT

(lakh Rs.)

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 Investment and Employment Scenario – Industrial sector of Thiruvananthapuram

Number of registered No. of people Investment

units employed (In lakhs)
Since 2006 12,524 86,450 150,287
For 2015 1,187 7,377 16,704
Table 1: Industrial sector – Trend of Employment and Investment - Thiruvananthapuram

Source: District Industries Centre, Thiruvananthapuram,

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Number of Investment No. of people
Type of industry
units (lakhs.) employed
Agro based 4753 28798 22883
Soda water 43 843 228
Cotton textile 1976 16441 15354
Woolen, silk & artificial Thread based
1095 16441 7673
clothes.
Wood/wooden based furniture 514 3927 2508
Paper & Paper products 321 3489 2394
Leather based 1263 4116 8246
Chemical/Chemical based 913 4532 4948
Rubber, Plastic & petro based 596 9377 3362
Mineral based 144 2865 1410
Metal based (Steel Fab.) 2444 8121 9794
Engineering units 822 10350 9428
Electrical machinery and transport
1855 12917 11943
equipment
Repairing & servicing 1718 10471 7695
Others 12820 87988 66180
Total 31277 220676 174046
Source: Development commissioner MSME, Govt. of India

Details of Existing Medium Scale Enterprises

Number of No. of people

Type of Sector Investment (in Lakhs)
Enterprises employed
Private 2 1,833 451
Partnership 3 80,700 420
Proprietary 8 3,281 102
Total 13 85,814 973
Source: District Industries Centre, Thiruvananthapuram

Large Scale Industries/ Public Sector Undertaking

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List of the units in Thiruvananthapuram District 19

1 Handicrafts Development Corporation of Kerala Ltd.

2 Kerala Artisan Development Corporation Ltd.
3 Travancore Titanium Products Ltd.
4 Kerala Industrial Infrastructure Development Corporation
5 Kerala Small Industries Development Corporation Ltd.
Connectivity
Road Connectivity
Roads Connectivity Length in Kms
National Highway 80
State Highway 180
Main District Highway 2420
Other district & Rural 13525
Source: Economic Review 2015-16

Communication (as on 2014-15)

Type Number
Telephone connection 9,90,103
Post offices 414
Density of telephone (Nos/1000) 299
Source: Economic Review 2015

Social Infrastructure
Health Institutions as of 2014-15
Institutions Numbers
Allopathic Hospital 10
Ayurvedic Hospital 15
Community health centers 23
Primary health centers 24
Dispensaries 8
Total 80
Source: Compiled from Economic Review 2015

Banking as of 2014-15
Type Numbers
Commercial Banks 675

Education Institutions as of 2014-15

Type of schools Number
Primary school 505
Secondary & senior secondary schools 482
Source: Economic Review 2015,

19
http://dcmsme.gov.in/dips/2016-17/Thiruvananthapuram.pdf

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 Colleges Number
Arts and Science 30
Engineering 23
Homeopathy 2
Medical 4
Dental 4
Ayurveda 2
Hotel Management 2
Nursing 2
Management 9
Pharmacy 7
Polytechnic 5
Siddha 1
TTI 34
Total 125
Source: Keralacolleges.com

Investment Opportunities
1. IT & IT Enabled Services
a) Software Development
b) Business Process Outsourcing
c) Knowledge Process Outsourcing
d) Software Training Centres

2. Tourism
a) Medical Tourism/ Ayurveda
b) Hotels & Hospitality
c) Tours & Travels

3. Biotechnology
a) R & D centres, Drug discovery, Tissue Culture
b) Life Sciences, Medical devices, Pharmaceuticals
c) Education & Training centres

4. Textile
a) Handlooms, Power looms, Weaving
b) Apparels & Garment manufacturing

5. Infotainment
a) Film & Video editing, outdoor facilities
b) Shooting locales
c) Animation software, Digital cinema

6. Building Construction

Key Projects

1 Vizhinjam International Deepwater Multipurpose Seaport

2 Technocity
3 Life Science Park

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4 Mono Rail

Kollam

District at a glance
Total Geographical area 2,491 Km2
Population 26,29,703
Nearest Railway Station Kollam Junction (2 Km from DHQ)
Nearest airport Thiruvananthapuram International Airport (66 Km
from DHQ)
Major Exports Cashew, Sea food, Coir, Handloom
Key Institutions Indian Rare Earths Limited (Mineral Division), Kerala
Minerals and Metals Ltd, Kerala State Cashew
Development Corporation, TKM College of
Engineering, Amrita Institutions, Cashew Export
promotion council laboratory.
Major Crops Paddy, Tapioca, Coconut, Rubber, Pepper, Banana,
Mango, Cashew
Industrial parks Industrial Park (Promoted by KINFRA)
Industrial Estates at Umainellur and Karunagapally
(Promoted by SIDCO);
Industrial Estates at Chadayamangalam,
Sasthamkotta, Mukundapuram, Umainellur
(Promoted by DIC).
Industrial Cluster Wood Industry, Food Processing Industry, Garment
Industries
Other Major Industries Cashew processing industry, Handloom industry,
Spinning mills, Paper mills, Aluminum industry,
Mineral Industry, Fisheries, Rubber plantations etc.
Leading industrial houses include United Electrical
Industries, Kerala Electrical and Allied Engineering
Company, Thomas Stephen and Company, Kerala
Ceramics Limited, Kerala Minerals and Metals Limited,
Travancore Plywood Industries, Parvathi Mills Limited,
Kerala Agro-Fruit Products Aluminum Industries
Limited etc.
Other Key Factors Neendakara - one of the most important Fishing Ports
in the State; Ranks first in Livestock wealth in State.

Administrative setup
Particulars Number
Revenue Divisions 1
Taluks 6
Corporations 1
Municipalities 4
Gram Panchayat 68
Source: Revenue Dept.,LSGD Elections 2015

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Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)

Base year: 2004-05

Particulars INR in Lakhs % Contribution
1 Agriculture and Allied 546940
1.1 Agriculture & Allied Activities 397838 12.96%
1.2 Forestry & Logging 41448 1.35%
1.3 Fishing 107654 3.51%
2 Mining and Quarrying 20348 0.66%
A TOTAL OF PRIMARY SECTOR 567287 18.49%
3 Manufacturing 119375 3.89%
3.1 Registered 53316
3.2 Un-registered 66060
4 Construction 298083 9.71%
5 Electricity, Gas and Water supply 47402 1.54%
5.1 Electricity 43898
5.2 Gas 530
5.3 Water supply 2973
B TOTAL OF SECONDARY SECTOR 464860 15.15%
6 Industry 485207
7 Transport, Storage& Comm. 343405 11.19%
7.1 Railways 10159
7.2 Transport by other means 270395
7.3 Storage 2314
7.4 Communication 60536
8 Trade, Hotel & Restaurants 520703 16.97%
9 Banking & Insurance 132422 4.32%
10 Real estate ownership, business ,legal 501291 16.34%
11 Public Administration 205915 6.71%
12 Other Services 332854 10.85%
C TOTAL OF TERTIARY SECTOR 2036591 66.37%
DDP 3068738
Mid-year Population 2648672
Per capita Income(in Rupees) 115859
Table 2: GDDP - Kollam

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

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 Primary
19%
Secondary
15%
Tertiary
66%

GDDP - Kollam

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Others, 1631, 0%

Forest, 81438,
33%
Net area sown,
124066, 50%
Land put to non
agricultural use,
27247, 11% Barren &
uncultivable
land, 189, 0%
Fallow other
Current than current Cultivable
Still Water, fallow, fallow, 1708, waste, 1913,
6924, 3% 3672, 1% 1% 1%

Figure 1 -Land Utilization Pattern (Area in Hectare) - Kollam

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water resources
Length of Coastal Line (in Kms) 37
Number of Rivers in the District 4
Number of Reservoirs 1
Reservoirs Water Spread Area (in Sq. Km) 1.16

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Source: Department of Economics and Statistics

Production of Mineral Deposits (2015-16)

Type Name of mineral Production (in tonnes)
Major mineral Granite building stone 24,07,583
Minor mineral Laterite 197,128
Ilmenite 53,550
Brick clay 9,709
Sillimanite 9,267
Sand 7,000
Zincon 6,432
Rutile 2,350
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Numbers
Cattle farms 74
Poultry farms for meat 105
Poultry farms for egg -
Slaughter houses 118
Veterinary Institutions 241
Source: Department of Economics and Statistics

Agriculture Workers Population (2010-11)

Other Workers
42% Workers
50%

House hold
Industry Workers
1% Agricultural Cultivators
Labourers 3%
4%

Agriculture Workers Population - Kollam

Source: Department of Economics and Statistics, Report on Panchayat Level Statistics 2011

Industries

Overview of Industrial Sector (as on 31.03.2016)

Particulars Numbers
Total Industrial Unit 8065
Registered Medium and large Scale Unit 5
Estimated Average No of Daily Worker employed in Small Scale 8
Industries (per Unit)

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 No of Industrial Area 2
Turnover of Small Scale Industries (in Lakhs) 30,700
Industrial Sector – Kollam , Source: District Industries Centre, Kollam
Trend of Investment, Employment and Units registered (as on 31.03.2016)
25000

20000

15000

10000

5000

0
2005 -06 2006 -2007 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16

NUMBER OF REGISTERED UNITS EMPLOYMENT INVESTMENT

(lakh Rs.)

Figure 2: Industrial Sector Investment and Employment Scenario - Kollam

Source: District Industries Centre, Kollam

Number of registered No. of people

Year Investment (in lakhs)
units employed
Since 2006 7686 43308 86899

2015-16 1143 4526 11030

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Type of industry Number of Investment(lakhs) No. of people

units employed
Agro based 1204 20975 26019
Soda water 23 119 68
Ready-made garments & 670 4649 4030
embroidery
Wood / wooden based 643 8584 3508
furniture
Paper & Paper products 129 2058 649
Leather based 8 18 36
Chemical/ Chemical based 146 1254 814
Rubber, Plastic & petro 221 4194 1433
based
Metal based (Steel Fab.) 15 245 97
Engineering units 1227 12242 6238
Electrical machinery and 110 1792 977
transport equipment

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 Repairing & servicing 1245 14362 7008
Others 2424 45227 14264
Total 8065 115719 65141
Source: District Industries Centre, Kollam

Details of existing Medium Scale Enterprises

Not Available

Large Scale Industries/ Public Sector Undertaking

1. Kerala Minerals and Metals Limited

2. Indian Rare Earth Limited

Connectivity
Road Connectivity
Roads Connectivity Length in Kms
National Highway 57
State Highway 267
Main District highway 1202
Other district & Rural roads 196
Rural road/Agriculture roads 196
Source: Economic Review 2015-16

Communication (2014-15)
Type Number
Telephone connection 6,35,804
Post offices 364
Density of telephone (Nos/1000) 241
Source: Economic Review 2015

Health Institutions as of 2014-15

Institutions Number
Allopathic Hospital 9
Ayurvedic Hospital 9
Community health centers 17
Primary health centers 58
Sub Centers 60
Total 153
Source: Compiled from Economic Review 2015, Panchayat Level Statistics 2011 and DHS

Banking as of 2014-15
Type Number
Commercial Bank 374
Source: Economic Review 2015

Education Institutions as of 2014-15

Type of School Number
Primary school 484

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 Upper Primary 211
Secondary & senior secondary schools 417
Source: Economic Review 2015

Colleges Number
Arts and Science 14
Engineering 14
Dental 1
Ayurveda 2
Medical 1
Nursing 4
Management 5
Pharmacy 2
Polytechnic 2
TTI 25
Total 70
Source: Keralacolleges.com

Investment Opportunities

1. Manufacturing
a. Mineral Processing units, Cashew Processing, Marine Products, Agro based
Industries
b. Pos 20 Building materials (Paving Tiles, Hollow Bricks), Clay based Industries
c. Meat processing units, Dairy units
2. IT/ ITES
a. BPO, Software Development
3. MSME
a. Printing
b. Food processing
c. Readymade garments
d. Building Materials
e. Paper product
f. Soft Drinks
g. Wood
h. Light Engineering
4. Service Industry

a. Beauty Parlor
b. Ayurveda
c. Construction
d. IT based service
e. Catering service
f. Automobile service station
g. Fashion designing

20
Polyhedral Oligomeric Silsesquioxanes

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 h. Logistic service

Key Projects

a. Titanium Sponge Project

b. SEZ - Techno park
c. Kallada Irrigation Project
d. Kulathupuzha Hi-Tech Dairy Farm

Pathanamthitta

District at a Glance
Particulars
Total Geographical area 2,637 Km2
Population 11,95,537
Nearest railway station Chengannur railway station (24 km from DHQ)
Thiruvananthapuram International Airport (109 Km from
Nearest airport
DHQ)
Major Exports Oleoresin, Spice Oil, Food Products, etc.
Pushpagiri Medical College, Muthoot Hospitals, NSS
Key Institutions College, Pandalam Plantation Corporation,
Soil Conservation Research Centre, Konni
Major Crops Paddy, Tapioca, Pulses, Coconut, Banana, Pepper, Ginger.
KINFRA Industrial Park at Adoor
Industrial parks
KINFRA Food processing Park at Adoor
Industrial Cluster General Engineering, Food Processing
About 75% people are dependent agriculture sector. Rubber
Other Key factors is the most important crop, with plantations covering over
478 sq. Km
Source: District Profile of Kerala 2015 – 16 Report

Administrative Set up
Particulars Number
Revenue Divisions 2
Taluks 6
Corporations -
Municipalities 4
Gram Panchayat 53
Source: Source: Revenue Dept., LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture and Allied 274787
1.1 Agriculture & Allied Activities 251227 15.69%
1.2 Forestry & Logging 21658 1.35%

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 1.3 Fishing 1902 0.12%
2 Mining and Quarrying 9493 0.59%
A TOTAL OF PRIMARY SECTOR 284280 17.75%
3 Manufacturing 30951 1.93%
3.1 Registered 13823
3.2 Un-registered 17128
4 Construction 142276 8.88%
5 Electricity, Gas and Water supply 24830 1.55%
5.1 Electricity 22149
5.2 Gas 268
5.3 Water supply 2412
B TOTAL OF SECONDARY SECTOR 198057 12.37%
6 Industry 207550
7 Transport, Storage& Comm. 203258 12.69%
7.1 Railways 1094
7.2 Transport by other means 154304
7.3 Storage 232
7.4 Communication 47629
8 Trade, Hotel & Restaurants 208849 13.04%
9 Banking & Insurance 121387 7.58%
10 Real estate ownership, Business, lega 264758 16.53%
11 Public Administration 107696 6.72%
12 Other Services 213189 13.31%
C TOTAL OF TERTIARY SECTOR 1119138 69.88%
DDP 1601475
Mid year Population 1188190
Per capita Income(in Rupees) 134783
GDDP – Pathanamthitta. Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-
14)

Primary
Sector
18%

Secondary
Tertiary Sector
Sector 12%
70%

Figure 3: GDDP – Pathanamthitta

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

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 Land Utilization Pattern

Others, 376, 0%

Still Water, Net area sown,

2698, 1% 81364, 31%

Current fallow, Forest, 155214,

4128, 2% 58%

Fallow other
than current
fallow, 2974, 1% Land put
to non
Cultivable
agricultur
waste, Barren &
al use,
1873, 1% uncultivable
16488, 6%
Figure 5 – Land Utilization (Area in 162,
land, Hectare)
0% - Pathanamthitta
Figure 4: Land Utilization Pattern - Pathanamthitta
Land Utilization (Area in Hectare) - Pathanamthitta

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water Resources
Length of Coastal Line (in Kms) -
Number of Rivers in the District 3
Number of Reservoirs -
Reservoirs Water Spread Area (in Sq. Km) -
Source: Department of Economics and Statistics, Report on Panchayat Level Statistic, 2011

Production of Mineral Deposits (2015-16)

Type Name of mineral Production (in tonnes)
Major mineral Granite Building Stone 2,80,084
Ordinary Earth 6,37,682
Minor mineral Laterite 34,525
Brick Clay 2,550
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Number
Cattle farms 75
Poultry farms for meat 19
Poultry farms for egg 15
Slaughter houses 37
Veterinary Institutions 169

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 Source: Department of Economics and Statistics

Agriculture Workers Population (2011-12)

Other
workers
37%
Workers
50%

Househol
d Industry Agricultural
Cultivator
Worker Labourers s
1% 6% 6%

Agriculture Workers Population - Pathanamthitta

Source: Report on Panchayat Level Statistics 2011

Industries
Overview of Industrial Sector (as on 31.03.2016)

Particulars Numbers
Total Industrial Unit 15,423
Registered Industrial Unit 14,021
Registered Medium and large Scale Unit 1
Estimated Average No of Daily Worker employed in Small Scale 4
Industries (per unit)
Employment in Medium and Large Industries 68
No of Industrial Area 3
Turnover of Small Scale Industries (in Lakhs) 500
Turnover of Medium and Large Scale Industries (in Lakhs) 35
Source: District Industries Centre, Pathanamthitta

Trend of Investment, Employment and Units registered (as on 31.03.2016)

70000
60000
50000
40000
30000
20000
10000
0
2006 - 2007 - 2008 - 2009 - 2010 - 2011 - 2012 - 2013 - 2014 - 2015 -
2007 08 09 10 11 12 13 14 15 16

NUMBER OF REGISTERED UNITS EMPLOYMENT INVESTMENT

(lakh Rs.)

Figure 6: Industrial Sector Investment and Employment Scenario - Pathanamthitta

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Source: District Industries Centre, Pathanamthitta

Year Number of registered No. of people Investment (in lakh)

units employed
Since 2006 14,021 59,544 99,990

2015-16 426 2,057 19,668

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Number of Investment No. of people

Type of industry
units (lakh) employed
Agro based 1883 12560 7137
Soda water 427 2848 1618
Ready-made garments &
1797 11986 6811
embroidery
Paper & Paper products 156 1040 591
Chemical/ Chemical based 760 5069 2880
Rubber, Plastic & petro based 293 1954 1110
Mineral based 247 1647 936
Engineering units 2176 14513 8247
Repairing & servicing 3661 24419 13875
Others 4023 26833 15247
Total 15423 102869 58452
Source: District Industries Centre, Pathanamthitta

Existing Medium Scale Enterprises:

Akay flavors & Aromatics Ltd

Tierra Foods Ltd

Existing Large Scale Industries/ Public Sector Undertaking

Traco Cables
Connectivity
Road Connectivity
Roads Connectivity Length in Kms
National Highway -
State Highway 218
Main District highway 574
Other district & Rural 621
Rural road/Agriculture roads 43
Source: Economic Review 2015-16,

Communication (2014-15)
Type Number
Telephone connection 4,61,486

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 Post offices 315
Density of telephone (Nos/1000) 386
Source: Economic Review 2015,

Social Infrastructure
Health Institutions (2014-15)
Type Number
Allopathic Hospital 9
Ayurvedic Hospital 5
Community health centers 12
Primary health centers 43
Sub Centers 49
Total 118
Source: Compiled from Economic Review 2015,

Banking (2014-15)
Type Number
Commercial Bank 373
Source: Economic Review 2015

Education Institutions (2014-15)

Type of School Number
Primary school 425
Upper Primary 143
Secondary & senior secondary schools 286
Source: Economic Review 2015

Colleges Number
Arts and Science 10
Engineering 6
Nursing 4
Polytechnic 4
TTI 11
Ayurveda 1
Medical 1
Management 4
Total 41
Source: Keralacolleges.com

Investment Opportunities
1. Tourism
a. Pilgrim Tourism, Farm Tourism, Medical Tourism, Eco Tourism
b. Hotels & Hospitality (Especially on Sabarimala route)
2. Agro based and Food Processing Industries
a. Dairy products, Packed foods, RTE snacks
3. Wood based industries
a. Timber, Plywood and Rubber based industries
4. Educational Institutions

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 a. Banking & Finance, Nursing & Paramedical
5. Infrastructure Development
a. Roads, Transportation facilities, Rest houses/ boarding & lodging
6. MSME
a. Food Processing
b. Construction Field
c. Rubber Based
7. Service Industry
a. Construction Field
b. Food Processing,
c. Light Engineering Field,
d. Bakery Products,
e. IT Enabled Services

Key Projects
— SIDCO – Mini industrial estate
— KINFRA Industrial Park Kunnamthanam

Alappuzha

District at a Glance
Total Geographical area 1,414 Km2
Population 21,21,943
Nearest railway station Alappuzha railway station (2 km from DHQ)
Nearest airport Cochin International Airport (84 km from DHQ)
Major Exports Shrimps, Coir Products
Key Institutions Central Coir Research Institute
Major Crops Rice, Spices, Coconut, Coir products
Industrial parks Seafood Park at Aroor, Industrial Growth Centre of KSIDC
Pallippram, Mega food park at Pallippram (mainly for marine
food processing industry).
Industrial Clusters Garments Industry, Coir Industry and Food processing.
Industries Eight public sector undertakings are present.
Others Key factors Centre of Coir and Prawn farming

Administrative Set up
Particulars Numbers
Revenue Divisions 2
Taluks 6
Corporations -
Municipalities 6
Gram Panchayat 72
Source: Revenue Dept.,LSGD Elections 2015

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Gross District Domestic Product
Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture and Allied
1.2 Agriculture & Allied Activities 132433 5.07%
1.2 Forestry & Logging 27709 1.06%
1.3 Fishing 104835 4.01%
2 Mining and Quarrying 5801 0.22%
A TOTAL OF PRIMARY SECTOR 270778 10.37%
3 Manufacturing 154748 5.93%
3.1 Registered 69115
3.2 Un-registered 85633
4 Construction 279888 10.72%
5 Electricity, Gas and Water supply 43598 1.67%
5.1 Electricity 37414
5.2 Gas 450
5.3 Water supply 5733
B TOTAL OF SECONDARY SECTOR 478234 18.31%
6 Industry 484035
7 Transport, Storage& Comm. 345960 13.25%
7.1 Railways 12043
7.2 Transport by other means 278249
7.3 Storage 2544
7.4 Communication 53125
8 Trade, Hotel & Restaurants 499391 19.12%
9 Banking & Insurance 147064 5.63%
10 Real estate ownership, Business ,legal 414920 15.89%
11 Public Administration 165070 6.32%
12 Other Services 289849 11.10%
C TOTAL OF TERTIARY SECTOR 1862254 71.32%
DDP 2611265
Mid year Population 2132661
Per capita Income(in Rupees) 122442
Source: Directorate of Economics & Statistics

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 Primary
Sector,
10%

Secondar
Tertiary y Sector,
Sector, 18%
71%

GDDP – Alappuzha

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Others, 470, 0%
Forest, 0, 0%

Land put to non Barren &

agricultural use, uncultivable
22567, 16% land, 29, 0%

Cultivable waste,
15064, 11%

Fallow other
Net area sown, than current
84705, 60% fallow, 2670, 2%
Current fallow,
3363, 2%
Still Water,
12143, 9%

Land Utilization Pattern (Area in Hectare) - Alappuzha

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water Resources
Length of Coastal Line (in Kms) 82
Number of Rivers in the District 3
Number of Reservoirs -
Reservoirs Water Spread Area (in Sq Km) -
Source: Department of Economics and Statistics

Production of Mineral Deposits (2015-16)

Type Name of Mineral Production(in tonnes)
Major Mineral Granite Building Stone 2,378

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 Minor Mineral Laterite 10,991
Sand 2,65,956
Silica Sand 66,402

Source: Dept. Of Mining and Geology

Animal Husbandry
• Animal husbandry plays an important role in generating employment and income to the weaker
sections of the population.
• District contributes 4.42 % of the total livestock population in the State.

Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Total Number

Cattle farms 287

Poultry farms for meat 98

Poultry farms for egg 124

Slaughter houses 79
Veterinary Institutions 159
Source: Department of Economics and Statistic,

Agriculture Worker Population (2011-12)

Other
Workers,
43% Workers,
50%

House hold
Industry
Workers, 2%
Agricultural Cultivators
Labourers, 3% , 1%

Agriculture Worker Population - Alappuzha

Industries
Overview of Industrial Sector (as on 31.03.2016)

Type Number
Total industrial unit 11,442
Number of registered industrial unit 8,830
Number of registered medium & large unit 36

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 Estimated avg. no. of daily worker employed in small scale industries 30
(per Unit)
Employment in large and medium industries 2,275
No. of industrial area 9
Turnover of small scale industries.(in Lakhs) 31,397
Turnover of medium & large scale industries (in lacs) 243,396
Source: DIC Alappuzha, District Profile of Kerala 2014 – 15 Report, Development commissioner MSME, Govt. of India

Trend of Investment, Employment and Units registered (as on 31.03.2016)

Trend of units Registered

30000

20000

10000

Investment (In lakhs) Employment

Number of Units registered

Industrial Sector –Investment and Employment Scenario - Alappuzha

Source: DIC Alappuzha, District Profile of Kerala 2014 – 15 Report, Development commissioner MSME, Govt. of India
Number of Units No. of people Investment (In lakhs)
registered employed
Since 2006 8830 62655 119417
2016 234 1555 14732

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Number of Units Investment (In No. of people

Type of Industries
Registered lakhs) employed
Agro based 1949 38990 19236
Ready-made garments &
1272 15215 7060
embroidery
Repairing & servicing 821 18889 7607
Others 772 8388 1544
Engineering units 668 8012 4200
Chemical/Chemical based 623 5969 3984
Jute & jute based 451 1824 4176
Electrical machinery and
436 2544 908
transport equipment
Rubber, Plastic & petro based 402 6700 3868
Woolen, silk & artificial Thread 370 791 2284
based clothes.
Wood/wooden based furniture 305 8255 3950
Paper & Paper products 241 1950 1723

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Metal based (Steel Fab.) 199 577 1039
Soda water 119 443 421
Cotton textile 112 560 336
Mineral based 76 246 256
Leather based 14 68 63
Total 8830 119421 62655
Source: DIC Alappuzha, 2014-15

Existing Medium Scale Enterprises

Total Units Investment (in Lakhs) No. of people employed

36 35,498 4,066
Source: DIC, Alappuzha, 2014-15

Existing Large scale Enterprises

No. of people
Sector Numbers Investment (in Lakhs)
employed
Private 3 18911 2467
Public 5 8308 1211
Total 8 27219 3678
Source: DIC, Alappuzha, 2014-15

Connectivity
Road Connectivity
Road Connectivity Length in Kms
National Highway 24

State Highway 171

Main District Highway 1303

Other district Roads 34

Rural/Agriculture Roads 2573

Source: Economic Review 2015-16, Panchayat level statistics, 2011

Communication (2014-15)
Type Number
Telephone connection 530500
Post offices 251
Density of telephone (Nos/1000) 250
Source: Economic Review 2015

Social Infrastructure
Health Institutions as of 2014-15
Type Number

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 Allopathic Hospital 13

Ayurvedic Hospital 11

Unani hospitals 16

Community health centers 42

Primary health centers 55

Dispensaries 18

Sub Health Centers 48

Source: Compiled from Economic Review 2015, Panchayat Level Statistics 2011 and DHS

Banking as of 2014-15
Type of Bank Number
Commercial Bank 363
Source: Economic Review 2015

Education Institution as of 2014-15

Type of School Number
Primary school 407
Upper schools 155
Secondary & senior secondary schools 321
Source: Economic Review 2015

Colleges Number
Arts and Science 15
Hotel Management 1
Engineering 9
Polytechnic 3
Management 1
Medical 1
TTI 10
Pharmacy 2
Total 42
Source: Keralacolleges.com

Investment Opportunities

1. Manufacturing
a. Medium & Small scale units in Coir, Coconut, China clay, etc
b. Food processing (Marine based), Modern Rice Mills
c. Construction materials
2. Tourism
a. Backwater Tourism
b. Heritage Tourism
3. IT & IT Enabled Services

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 a. Software Development
b. Software Training Centres
4. MSME
a. Fruit processing, Computer Stationery
b. PVC products
c. Paper products,
d. Automobile workshop
e. Steel Furniture, Decorative door & Windows,
f. Electronic Equipment
g. Handicraft items

5. Service Industry

a. Repair & Services (workshops)

b. Marketing
c. Consultancy
d. Computerized design & drafting
e. Advertising Agency

Key Projects

1. Industrial Growth Centre, Cherthala (developed by KSIDC)

2. Infoparks at Cherthala & Ambalappuzha
3. Sea Food Park, Aroor (developed by KINFRA)

Kottayam

District at Glance
Total Geographical area 2,208 Km2
Population 19,79,384
Nearest Railway station Kottayam railway station (1 Km from DHQ)
Nearest airport Cochin International Airport (87.5 Km from DHQ)
Major Exports Rubber Products, Ethnic food, Engineering tools, Spice
extracts.
Key Institution Rubber Research Institute of India, Tropical Institute of
Ecological Sciences (TIES), Government Medical College,
Kottayam, Centre for Rural Management, Rajiv Gandhi
Institute of Technology, Institute for Intensive Research in
Basic Sciences, Regional Agricultural Research Station,
Kumarakom.
Major Crops Rubber, Paddy, Pepper, Cocoa, Coconut, Fruits, Tea And
Coffee
Industrial clusters Rubber Industry, Food Industry, Soft toys Industry,
Engineering Industry
Industries Printing & Publishing
Others key factors Kumarakom is one of the major tourist attractions of
state

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Administrative Set up
Particulars Numbers
Revenue Divisions 2
Taluks 5
Corporations -
Municipalities 6
Gram Panchayat 71
Source: Revenue Dept.,LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 436000 16.11%
2 Forestry & Logging 30625 1.13%
3 Fishing 7459 0.28%
Agriculture and Allied 474083
4 Mining and Quarrying 12201 0.45%
A TOTAL OF PRIMARY SECTOR 486284 17.97%
5 Manufacturing 114953 4.25%
5.1 Registered 51340
5.2 Un-registered 63613
6 Construction 265424 9.81%
7 Electricity, Gas and Water supply 46443 1.72%
7.1 Electricity 40502
7.2 Gas 411
7.3 Water supply 5530
B TOTAL OF SECONDARY SECTOR 426820 15.77%
Industry 439021
8 Transport, Storage& Comm. 304690 11.26%
8.1 Railways 5570
8.2 Transport by other means 223281
8.3 Storage 4397
8.4 Communication 71442
9 Trade, Hotel & Restaurants 481632 17.80%
10 Banking & Insurance 167649 6.20%
11 Real estate ownership, Business ,legal 370889 13.71%
12 Public Administration 179171 6.62%
13 Other Services 289009 10.68%
C TOTAL OF TERTIARY SECTOR 1793039 66.26%
DDP 2706144
Mid-year Population 1980004
Per capita Income(in Rupees) 136674
GDDP - Kottayam

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 Primary
Sector,
22%

Tertiary
Sector,
62%
Secondar
y Sector,
16%

GDDP - Kottayam

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization pattern

Barren &
uncultivable
Others, 403, 0% Forest, 8141, 4% Land put to non
land, 1231, 1%
agricultural use,
27611, 12%

Cultivable waste,
6245, 3%
Fallow other
than current
fallow, 3108, 1%
Current fallow,
Net area sown, 6126, 3%
161217, 73% Still Water, 6360,
3%

Land Utilization Pattern (Area in Hectares) – Kottayam

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water Resources

Length of Coastal Line (in Kms) Nil

Number of Rivers in the District 3
Number of Reservoirs -
Reservoirs Water Spread Area (in Sq. Km) -

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Source: Department of Economics and Statistics

Production of Mineral Deposits (2015-16)

• Kottayam district has rich Production of Mineral of lime shell and graphite.
• Lime shell deposits are exploited by units like Travancore Cements limited, Travancore Electro
Chemicals available Ltd, etc. for industrial purpose.
• Granite is also available which can be utilized by industries engaged in the stone crushing, granite
polishing etc.
Type Name of Mineral Production (In
Tonnes)
Major Mineral Lime Shell 27745
Minor Minerals Granite Building Stone 1821254
Sand 4577
Ordinary Earth 1347363
Laterite 19298
Brick Clay 59831
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Total Number

Cattle farms 225
Poultry farms for meat 73
Poultry farms for egg 11
Slaughter houses 87
Veterinary Institutions 172
Source: Department of Economics and Statistics

Agriculture Workers Population (2011-12)

Agriculture Workers Population

Other
Workers
42% Workers
50%
House
hold
Industry
Workers Agricultur
1% al
Labourers Cultivators
4% 3%
Agriculture Worker Population - Kottayam

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Industries

Overview of Industrial Sector (as on 31.03.2016)

Type Numbers
Registered Industrial Unit 7413
Registered Medium & Large Unit 1
Estimated Avg. No of Daily worker (per unit) 22
Employment in Medium and Large Industries 2905
No. of Industrial Area 19
Source: District Industries Centre, Kottayam

Trend of Investment, Employment and Units registered (as on 31.03.2016)

45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

NUMBER OF REGISTERED UNITS EMPLOYMENT INVESTMENT (lakh Rs.)

Industrial sector – Investment and Employment Scenario - Kottayam

Source: District Industries Centre, Kottayam

Number of No. of people Investment (lakhs)

registered units employed
Since 2006 8254 54538 127968
2016 1245 6265 15645

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Type of industry Number of Investment (lakh No. of people
units Rs.) employed
Agro based 972 14814 5527
Soda water 56 725 194
Cotton textile 19 843 198
Woolen, silk & artificial Thread 6 44 23
based clothes.

Ready-made garments & 513 3085 3200

embroidery
Wood/wooden based furniture 678 9306 4319
Paper & Paper products 103 2038 962

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 Leather based 47 838 575
Chemical/Chemical based 45 334 278
Rubber, Plastic & petro based 843 27558 8600
Mineral based 7 73 49
Metal based (Steel Fab.) 763 6515 3598
Electrical machine 9 103 58
Repairing & servicing 125 1111 683
Total 4186 67387 28264
Source: District Industries Centre, Kottayam

Details of Existing Medium Scale Enterprises:

Name of the Unit Sector Investment (in No. of people

Lakhs) employed
Rubber Industry Private 717 54
Source: District Industries Centre, Kottayam

Details of Existing Large Scale Industries/ Public Sector Undertaking

Type of Industry Value of Plant and No. of people employed

Machinery (in
Lakhs)
Newsprint 20000 1,200
White Cement 75 390
Gray Cement 2000 82
Tread Rubber, Automobile 22741 1,804
tubes & Rubber products
Kraft Paper 1200 150
Maida Sooji, Wheat Flour 2800 70
Rubber Gloves 1600 95
Processed Rice 292 11
News Print 96500 485
Procured tread rubber, Tread 2500 19
rubber
Total 149,708 4,306
Source: District Industries Centre, Kottayam

Connectivity
Road Connectivity
Roads Connectivity Length in Kms
National Highway -
State Highway 406
Main District Highway 3043
Other district & Rural 756
Rural road/Agriculture roads 7700

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Source: Economic Review 2015-16, Panchayat level statistics, 2011

Communication (as on 2014-15)

Type Number
Telephone connection 746134
Post offices 408
Density of telephone (Nos/1000) 376
Source: Economic Review 2015

Social Infrastructure

Health Institutions as of 2014-15

Type Number
Allopathic Hospital 21
Ayurvedic Hospital 11
Community health centers 18
Primary health centers 43
Total 93
Source: Compiled from Economic Review 2015

Banking as of 2014-15
Type Number

Commercial Branches 475

Rural Banks 11

Co-Operative Banks 58

Source: Economic Review 2015

Education Institutions as of 2014-15

Type of School Number
Primary school 451
Upper Primary 201
Secondary & senior secondary schools 387
Source: Economic Review 2015

Colleges Number
Arts and Science 29
Engineering 9
Dental 1
Homeopathy 1
Medical 1
Nursing 4
Management 5
Pharmacy 2
Polytechnic 3
Physiotherapy 1
TTI 18

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 Colleges Number
Total 74
Source: Keralacolleges.com

Investment Opportunities

1. Manufacturing
a. Rubber and latex based industrial units
b. Printing & Publishing, Pre-press/ post-press, Media
c. Wood and Agro based Small & Medium units
2. Tourism
a. Backwater Tourism, Medical Tourism (Ayurveda), Eco Tourism
b. Hotels & Hospitality, Tours & Travels
3. MSME
a. Availability of raw mater like Rubber, Spices, Fruits and Vegetables.
b. Availability of Minerals like lime shell, graphite
c. Good transportation facilities
d. Good health Care and education facility
e. Presence of Financial Institutions
f. Availability of good communication system

Key Projects

1 Kottayam-Kumarakom Ecocity Project

2 Proposed Indian Institute of Information Technology at Pala

Idukki

District at a Glance
Particulars
Total Geographical area 4,363 Sq. Km
Population 11,07,453
Nearest Railway Station Kottayam Railway Station (114 Km from DHQ)
Nearest airport Cochin International Airport (97.5 Km from DHQ)
Major Exports Spices
Key Institutions University College of Engineering, Thodupuzha
DC School of Management and Technology,
Pullikkanam, Spice Park, Kumily
Industrial cluster Rubber Industry, Wood Industry, Engineering
Industry, Agriculture Industry
Major Crops Cardamom, Tea, Pepper, Rubber, Coffee, Ginger,
lemon grass and vegetables
Industrial parks Standard Design Factories at Rajakumari
Other key factors The district is also the ‘powerhouse’ of Kerala
catering to around 66% of the State's Power needs.
Floriculture, mushroom cultivation, medicinal
plants, vanilla cultivation etc., are being taken up
by some farming communities in the district.
Animal husbandry activities are a major subsidiary
occupation of the farming community.

Administrative set up

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 Particulars Number
Revenue Divisions 2
Taluks 5
Corporations -
Municipalities 2
Gram Panchayat 52
Source: Revenue Dept.,LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 493419 32.39%
2 Forestry & Logging 22660 1.49%
3 Fishing 2574 0.17%
Agriculture and Allied 518653
4 Mining and Quarrying 4924 0.32%
A TOTAL OF PRIMARY SECTOR 523576 34.37%
5 Manufacturing 61900 4.06%
5.1 Registered 27645
5.2 Un-registered 34255
6 Construction 88163 5.79%
7 Electricity, Gas and Water supply 39238 2.58%
7.1 Electricity 38648
7.2 Gas 235
7.3 Water supply 355
B TOTAL OF SECONDARY SECTOR 189301 12.43%
Industry 194225
8 Transport, Storage& Comm. 94335 6.19%
8.1 Railways 0
8.2 Transport by other means 73473
8.3 Storage 461
8.4 Communication 20401
9 Trade, Hotel & Restaurants 166937 10.96%
10 Banking & Insurance 70667 4.64%
11 Real estate ownership, Business ,legal 238791 15.68%
12 Public Administration 40358 2.65%
13 Other Services 199410 13.09%
C TOTAL OF TERTIARY SECTOR 810498 53.20%
DDP 1523375
Mid-year Population 1103811
Per capita Income(in Rupees) 138010

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 Primary
Sector,
Tertiary 34% Secondary
Sector,
53% Sector,
12%

GDDP - Idukki

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Others,
1604, 0%

Net area sown, Forest, 198413,

206110, 47% 46%

Barren &
uncultivable
Still land, 1833, 1%
Water, Fallow other Cultivable waste, Land put to non
Current fallow, 2321, 1%
10480, than current agricultural use,
1647, 0%
2% fallow, 1220, 0% 12700, 3%

Land Utilization Pattern (Area in Hectares) – Idukki

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water Resources
Length of Coastal Line (in Kms) Nil
Number of Rivers in the District 7
Number of Reservoirs 4
Reservoirs Water Spread Area (in Sq. Km) 187

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Production of Mineral Deposits (2015-16)
Type Name of Mineral Production(in tonnes)
Major Mineral Granite Building Stone 1,158,289
Minor Mineral Ordinary Earth 93,820
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Number
Cattle farms 185
Poultry farms for meat 136
Poultry farms for egg 15
Slaughter houses 194
Veterinary Institutions 142
Source: Department of Economics and Statistics

Agriculture Workers’ Population

House hold
Industry
Cultivators, Workers,
10% 1%

Agricultural
Labourers,
14%

Workers,
50%
Other
Workers,
26%

Agriculture Worker Population - Idukki

Industries
Overview of Industrial Scenario (as on 31.03.2016)
Type Number
Number of Registered Industrial Unit 2,592
Number of Registered medium & large unit 6
Employment generated in large and medium industries 1,156
Number of industrial area Nil
Turnover of small scale industry (in Lakhs) 48,300
Turnover Of Medium & Large Scale Industries (In Lakhs) 22,200
Source: District Industries Centre, Idukki

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Trend of Investment, Employment and Units registered (as on 31.03.2016)
Trend of Units Registered
10000

8000

6000

4000

2000

0
2006-072007-082008-092009-102010-112011-122012-132013-142014-152015-16

NUMBER OF REGISTERED EMPLOYMENT INVESTMENT

UNITS (lakh Rs.)

Industrial Sector – Investment and Employment Profile - Idukki

Source: District Industries Centre, Idukki

Number of No. of people Investment

registered employed (lakhs)
units
Since 2006 2726 17928 40020
2016 187 876 2228

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Type of industry Number of Investment No. of people

units (lakh rs.) employed
Agro based 657 9667 4778
Soda water 22 258 102
Ready-made garments & embroidery 241 731 1511
Wood/wooden based furniture 168 2123 980
Paper & Paper products 37 142 224
Chemical/Chemical based 88 1793 772
Rubber, Plastic & petro based 160 2214 1113
Engineering units 235 1256 960
Electrical machinery and transport 43 241 242
equipment
Repairing & servicing 129 572 650
Others 940 2350 1880
Total 2720 21348 13212
Source: District Industries Centre, Idukki

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 Existing Medium Scale Enterprises:

No. of people
Type of Sector Numbers Investment (in Lakhs)
employed
Private 2 2950 541
Public 2 1759 575
Total 4 4709 1116
Source: District Industries Centre, Idukki

Existing large Enterprises

No large Scale Industries

Connectivity
Road Connectivity
Roads Connectivity Length in Kms
National Highway 157
State Highway 998
Main District Highway 1403
Other district & Rural 284
Source: Economic Review 2015-16, Panchayat level statistics, 2011

Communication (2014-15)
Type Number
Telephone connection 123675
Post offices 296
Density of telephone (Nos/1000) 312
Source: Economic Review 2015

Social Infrastructure
Health Institutions as of 2014-15
Type Number
Allopathic Hospital 5
Ayurvedic Hospital 3
Community health centers 14
Primary health centers 42
Sub Health Centers 231
Dispensaries 83
Private hospitals 90
Total 468
Source: Compiled from Economic Review 2015, Panchayat Level Statistics 2011 and DHS

Banking as of 2014-15
Type Number
Commercial Bank 122
Co-Operative bank 83
Rural Bank 3
Total 208
Source: Economic Review 2015

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 Education Institutions as of 2014-15
Type of School Number
Primary school 227
Secondary & senior secondary schools 244
Source: Economic Review 2015

Colleges Number
Arts and Science 12
Engineering 4
Nursing 2
Management 4
TTI 8
Polytechnic 4
Dental 1
Total 35
Source: Keralacolleges.com

Investment Opportunities

1. Tourism
a. Hill tourism, Medical Tourism (Ayurveda), Farm Tourism
b. Hotels & Hospitality
c. Tours & Travels
2. Manufacturing
a. Processing of Spices & Oleoresins Spices, Forest based industries
b. Modern Tea Factories, Organic Tea cultivation & processing
c. Dairy & Meat Processing units
d. Rubber and latex based products
3. Textile
a. Handlooms, Power looms, Weaving
b. Apparels & Garment manufacturing
4. Power
a. Ideal for small hydroelectric power stations
b. Wind Farms
5. Infrastructure Development
a. Roads and terrain development/ improvement
b. Modernization of Rest houses
6. MSME

a. Spices based industries

7. Service Industry
a. General Engineering Services,
b. Printing Press,
c. Plastic Recycling Units,
d. Paper and Paper Products

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Key Projects

a. Idukki Hydro Electric project

b. Indo-Swiss Livestock project
c. Tata Tea Plantations
d. Infrastructure development works in Main Eastern Highway (Punalur-Thodupuzha)

Ernakulam

District at a Glance
Total Geographical 3068 Sq. Km
area
Population 32,79,860
Nearest Railway Ernakulam Junction, South (10 KMs from DHQ at Kakkanad)
station
Nearest airport Cochin International Airport (28 Km from DHQ)
Major Exports Tea, Cashew, Coir Products, Coffee, Sea food Products, Spices,
Vanilla, Agro& Food
Industrial Cluster IT, Offset printers, General engineering, Furniture, Rubber,
Garments, Plastic, Plywood
Other Major Industries Major business sectors include construction, manufacturing,
shipbuilding, transportation/shipping, seafood and spices exports,
chemical industries, Information technology, tourism, health
services, and banking.
Key Institutions Cochin University of Science and Technology (CUSAT), National
Institute of Oceanography (Regional Centre), Central Marine
Fisheries Research Institute, National Institute of Fisheries Post
Harvest Technology & Training, Infopark, Cochin Special Economic
Zone, Spices Board, Marine Products Export Development Authority
(MPEDA), Coconut Development Board, Coir Board
Major Crops Rubber, Tapioca, Black Pepper, Arecanut, Coconut, Turmeric, Banana
and Plantain
Industrial parks Infopark, Cochin Special Economic Zone, KINFRA Export Promotion
Industrial Park, KINFRA Food Park, KINFRA Small Industries Park,
Rubber Park, Irapuram, Industrial Parks promoted by District
Industries Centre etc.
Women Entrepreneur mission (WE Space) of KSIDC at INKEL
Business Towers, Angamaly
Other Key Factors Industrial Development Area at Eloor is the largest industrial belt in
Kerala, with more than 250 industries manufacturing a range of
products including chemical and petrochemical products, pesticides,
rare earth elements, rubber processing chemicals, fertilisers, and
chromium compounds, and leather products.
Tourism is one of the strongest drivers of the local economy, ranks
first in the total number of domestic tourists visiting Kerala
The Kochi Port is one of the leading ports.

Administrative Set up
Particular Number
Revenue Divisions 2

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 Taluks 7
Corporations 1
Municipalities 13
Gram Panchayat 82
Source: Revenue Dept.,LSGD Elections 2015

Gross District Domestic Product (2011-12)

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 360817 6.67%
2 Forestry & Logging 32960 0.61%
3 Fishing 113118 2.09%
Agriculture and Allied 506894
4 Mining and Quarrying 32095 0.59%
A TOTAL OF PRIMARY SECTOR 538990 9.96%
5 Manufacturing 840056 15.53%
5.1 Registered 375183
5.2 Un-registered 464873
6 Construction 877447 16.22%
7 Electricity, Gas and Water supply 63764 1.18%
7.1 Electricity 51575
7.2 Gas 614
7.3 Water supply 11576
B TOTAL OF SECONDARY SECTOR 1781267 32.93%
Industry 1813363
8 Transport, Storage& Comm. 606659 11.21%
8.1 Railways 8965
8.2 Transport by other means 453981
8.3 Storage 3241
8.4 Communication 140472
9 Trade, Hotel & Restaurants 902884 16.69%
10 Banking & Insurance 307497 5.68%
11 Real estate ownership, Business ,legal 569601 10.53%
12 Public Administration 262316 4.85%
13 Other Services 440502 8.14%
C TOTAL OF TERTIARY SECTOR 3089459 57.11%
DDP 5409716
Mid-year Population 3329625
Per capita Income(in Rupees) 162472

Source: Directorate of Economics & Statistics

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 Primary
Sector,
10%
Secondary
Tertiary Sector,
Sector, 33%
57%

GDDP - Ernakulam

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Others, 554, 0%

Forest, 70617,
23%

Net area sown,

151786, 50% Land put to non
agricultural use,
40875, 13%
Barren &
Still Water, uncultivable
10410, 4% land, 578, 0%
Cultivable waste,
Fallow other 11071, 4%
than current
Current fallow, fallow, 10350,
9585, 3% 3%

Land Utilization Pattern (Area in Hectares) –Ernakulam

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water Resources

Length of Coastal Line (in Kms) 46

Number of Rivers in the District 2
Number of Reservoirs 1
Reservoirs Water Spread Area (in Sq Km) 6.08
Source: Department of Economics and Statistics

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Production of Mineral Deposits (2015-16)

1 The district is not endowed with rich mineral resources.

2 The graphite, lime shell and brick clay are few important minerals found in this district.
3 Rich lime shell deposits are found in the Vembanad lake and in the portion of Periyar River
4 Likewise Graphite deposits are spread in Peringala, Nirampuzha, Aroli, Vadakode and
Nagapuzha.

Type Name of Mineral Production(in tonnes)

Major Mineral Granite Building Stone 66,58,934

Minor Mineral Laterite 3,92,875

Ordinary Sand 57,143
River Sand 5,044
Ordinary Earth Brick Clay 920
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Number

Cattle farms 52
Poultry farms for meat 75

Poultry farms for egg 14

Slaughter houses 170

Veterinary Institutions 274
Source: Department of Economics and Statistics

Agriculture workers population (2011-12)

Other
Workers,
45% Workers,
50%

House
hold
Industry
Workers,
1% Agricultur
al
Cultivator
Labourers,
s, 2%
2%

Agriculture Worker Population - Ernakulam

Source: Department of Economics and Statistics

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Industries
Overview of Industrial Sector (as on 31.03.2016)

Particulars
Total industrial unit 34863
Number of registered industrial unit 21004
Number of registered medium and large unit 89
Estimated avg. no. of daily worker employed in small scale 246
industries (per unit)
Employment in large and medium industries 4355
No. of industrial area 6
Source: District Industries Centre, Ernakulum

Trend of Investment, Employment and Units registered (as on 31.03.2016)

140000

120000

100000

80000

60000

40000

20000

0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

NUMBER OF REGISTERED UNITS EMPLOYMEN T INVESTMENT…

Industrial Sector – Investment and Employment Scenario Ernakulam

Source: District Industries Centre, Ernakulum

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

No. of people
Investment
Type of industry Number of units employed
(lakh Rs.)
generated
Agro based 2,332 56,300 13,988
Soda water 1,045 1,438 9,518
Cotton textile 1,375 29,375 12,375
Woolen, silk & artificial
163 35,964 8,551
Thread based clothes.
Jute & jute based 461 2,357 8,417
Ready-made garments &
1,608 10,008 22,553
embroidery

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 No. of people
Investment
Type of industry Number of units employed
(lakh Rs.)
generated
Wood/wooden based furniture 1,008 24,250 16,894
Paper & Paper products 131 3,275 1,179
Leather based 96 3,400 1,864
Chemical/Chemical based 357 14,475 5,241
Rubber, Plastic & petro based 513 16,550 5,832
Mineral based 44 1,177 396
Metal based (Steel Fab.) 228 7,650 2,430
Engineering units 2,097 52,625 8,873
Electrical machinery and
331 10,275 5,979
transport equipment
Repairing & servicing 7,363 140,675 26,267
Others 1,852 98,583 42,318
Total 21,004 508,377 192,675
Source: District Industries Centre, Ernakulum

Existing Medium Scale Enterprises:

Value of Plant and Machinery

Numbers No. of people employed
(in Lakhs)
Total Industries 89 50,800 6,094
Source: District Industries Centre, Ernakulum

Existing Large Scale Industries

Large Scale Industries Under Public Sector
Total Industries 47 31
Source: District Industries Centre, Ernakulum

Existing Major Service enterprises

1. Ship chandelling
2. Security
3. Condition assessments/certification
4. Minor repairs to ships/pipeline

Connectivity

Road Connectivity
Road Connectivity Length in Kms
National Highway 97

State Highway 325

Major District Roads 2,815

Other district Roads 147

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Road Connectivity Length in Kms
Rural/ Agriculture (village roads) 10,003

Source: Economic Review 2015-16, Panchayat level statistics, 2011

Communication (as on 2014-15)

Type Number
Telephone connection 2,73,917
Density of telephone (Nos/1000) 312
Source: Economic Review 2015

Social Infrastructure

Health Institutions as of 2014-15

Institutions Number

Allopathic Hospital 7

Ayurvedic Hospital 13

Community health centers 23

Primary health centers 42

Private Hospitals 60

Source: Compiled from Economic Review 2015, Panchayat Level Statistics 2011 and DHS

Banking as of 2014-15
Type of Bank Number
Commercial Bank 932
Source: Economic Review 2015

Education Institution as of 2014-15

Type of School Number
Primary school 675
Upper schools 320
Secondary & senior secondary schools 209
Source: Economic Review 2015

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 Colleges Number
Arts and Science 32
Engineering 15
Homeopathy 1
Medical 3
Ayurveda 2
Dental 5
Nursing 7
Management 19
Pharmacy 2
Polytechnic 4
TTI 24
Total 114
Source: Keralacolleges.com

Investment Opportunities

1. IT & IT Enabled Services

a. Software Development
b. Business Process Outsourcing
c. Knowledge Process Outsourcing
d. Software Training Centres
2. Tourism
a. Medical Tourism/ Ayurveda
b. Hotels & Hospitality
c. Tours & Travels
d. Way side amenities
e. Cruise Tourism
3. Biotechnology
a. R & D centres, Drug discovery, Tissue Culture
b. Life Sciences, Medical devices, Pharmaceuticals
c. Education & Training centers
4. Manufacturing
a. Food Processing Units
b. Electronics Hardware Units
c. Gem & Jewellery
d. Engineering Industries
5. Other Sectors
a. Natural Gas based projects
b. Logistics & Warehousing

6. MSME

a. Food processing sector

b. Garment Manufacturing
c. Metal based

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 d. Rubber base
e. Chemical based
f. Electronic Goods
g. Plastic based
h. Bio Technology
i. Tourism & Healthcare

Key Projects

1. International Container Transshipment Terminal (ICTT),Vallarpadam

2. Smart City, Kakkanad
3. LNG Terminal
4. Electronics Hardware Park
5. Port-based Special Economic Zone
6. Metro Rail Project
7. Oceanarium Project
8. City Gas Distribution

Thrissur

District at a Glance
Total Geographical 3,032 Km2
area
Population 31,10,327
Nearest railway Thrissur Railway Station (3 KM from DHQ)
Station
Nearest airport Cochin International Airport (50 km from DHQ)
Major Exports Ayurvedic Products, Handicraft items, Textiles, Food Products, Dry
Fish, Rubber Products, Coconut Oil, Soap, Spice Oil, Food Processing
Machineries, Concrete Product machineries etc.
Key Institutions Kerala University of Health and Allied Sciences, Kerala
Agricultural University, Kerala Forest Research Institute, Amala
Cancer Research Centre, Amala Ayurvedic Hospital and Research
Centre, Kerala Sahitya Akademi, Kerala Kalamandalam Deemed
University for Art and Culture, Rashtriya Sanskrit Sansthan Deemed
University,Oushadhi, Vaidyaratnam Oushadhasala
Major Crops Paddy, Tapioca, Coconut, Areca Nut.
Industrial parks KINFRA Small Industries Park at Koratty,
KINFRA industrial park in Puzhakkal.
Industrial Cluster Terra tiles industries, Canning industries, Handlooms industries,
Power looms industries

Other Major The economy is largely dependent on industries like textile, timber,
Industries coir, fishery, agriculture-based industries, tiles industries and cattle
feed industry.
The bell metal industry is another significant part of the economy.
The other industries are diamond polishing and tyre moulding.

Other key factors It manufactures 70% of plain gold Jewellery in Kerala.

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 Largest hubs for Ayurvedic drug manufacturing in the country
prominent banking hub of South India
Numerous NBFCs like Chit units etc

Administrative Set up
Particular Number
Revenue Divisions 1
Taluks 6
Corporations 1
Municipalities 7
Gram Panchayat 86
Source: Revenue Dept.,LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 218489 5.82%
2 Forestry & Logging 45084 1.20%
3 Fishing 85814 2.29%
Agriculture and Allied 349388
4 Mining and Quarrying 16166 0.43%
A TOTAL OF PRIMARY SECTOR 365553 9.73%
5 Manufacturing 247596 6.59%
5.1 Registered 110580
5.2 Un-registered 137016
6 Construction 495402 13.19%
7 Electricity, Gas and Water supply 46755 1.25%
7.1 Electricity 40898
7.2 Gas 591
7.3 Water supply 5266
B TOTAL OF SECONDARY SECTOR 789752 21.03%
Industry 805918
8 Transport, Storage& Comm. 420845 11.21%
8.1 Railways 8826
8.2 Transport by other means 316390
8.3 Storage 953
8.4 Communication 94675
9 Trade, Hotel & Restaurants 789941 21.04%
10 Banking & Insurance 227271 6.05%
11 Real estate ownership, Business ,legal 534604 14.24%
12 Public Administration 188657 5.02%
13 Other Services 438675 11.68%

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 C TOTAL OF TERTIARY SECTOR 2599993 69.24%
DDP 3755299
Mid-year Population 3160361
Per capita Income(in Rupees) 118825

Source: Directorate of Economics & Statistics

Primary
Sector
10%

Tertiary Seconda
Sector ry
69% Sector
21%

GDDP – Thrissur

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Others, 665, 0%

Forest, 103619,
Net area sown, 34%
128385, 42%

Land put to
non
agricultural
use, 37613,
13%
Barren &
Still Water, 6328, uncultivable
2%
Fallow other Cultivable land, 259, 0%
Current fallow, than current waste, 8279,
9515, 3% fallow, 8256, 3% 3%

Land Utilization Pattern (Area in Hectares) –Thrissur

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

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Water Resources

Length of Coastal Line (in Kms) 54

Number of Rivers in the District 4
Number of Reservoirs 8
Reservoirs Water Spread Area (in Sq Km) 25.06

Source: Department of Economics and Statistics

Production of Mineral Deposits (2015-16)

1 The District is not rich in Mineral resources except for clay and sand.
2 Deposits of river sands are seen at the important rivers in the District.
3 Ordinary sand deposits are found under the paddy fields of Mukundapuram Taluks.

Type Name of Mineral Production(in tonnes)

Major Mineral Granite Building Stone 32,46,657

Minor Mineral Laterite 2,10,082

Ordinary Sand 25,774
River Sand 8,181
Ordinary Earth Brick Clay 1,81,183
Ordinary Earth 5,03,817
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)
Type Number
Cattle farms 42
Poultry farms for meat 80
Poultry farms for egg 65
Slaughter houses 364
Veterinary Institutions 230
Source: Department of Economics and Statistics

Agriculture workers’ population

Agriculture Workers' Population

Main Workers
Population
Cultivators
44% 50%
Agricultural
Labourers
House hold
Industry Workers
Other Workers
1%
3% 2%

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Industries
Overview of Industrial Sectors (as on 31.03.2016)

Particulars
Total industrial unit 32,654
Number of registered medium unit 11
Estimated avg. no. of daily worker employed in small scale
3
industries (per unit)
No. of industrial area 6
Source: District Industries Centre, Thrissur

Trend of Investment, Employment and Units registered (as on 31.03.2016)

Trend of Units Registered
16000
14000
12000
10000
8000
6000
4000
2000
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Number of units registered Employment Investment (in lakhs)

Source: District Industries Centre, Thrissur

Number of units No. of people employed Investment (in

registered lakhs)
Since 2006 13746 78386 1931
2016 774 4249 145.52

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

No. of people
Type of Industry No of Units Investment (Lakhs Rs.)
employed
Agro Based 2,026 7,987 8,633
Repairing & Servicing 1,085 5,341 5,720
Mineral Based 830 7,030 1,125
Ready-made garments &
823 2,128 4,723
embroidery
Rubber, Plastic & petro based 683 22,842 4,968
Engineering units 623 1,577 2,425
Metal based (Steel Fab.) 584 5,981 2,619
Wood/wooden based
457 4,503 2,473
furniture
Paper & Paper products 215 2,526 1,458

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 No. of people
Type of Industry No of Units Investment (Lakhs Rs.)
employed
Electrical machinery and
214 2,665 1,504
transport equipment
Chemical/Chemical based 210 2,228 1,172
Soda Water 114 495 407
Cotton Textile 104 641 1,066
Leather based 37 143 433
Woolen, Silk & artificial
6 5 20
thread based clothes.
Others 3,178 30,759 11,643
Total 11,189 96,851 50,389
Source: District Industries Centre, Thrissur

Existing Medium Scale Enterprises:

No. of people
Sector Numbers Investment (in Lakhs)
employed
Private 2 610 78
Public 1 780 29
Total 3 1390 107
Source: District Industries Centre, Thrissur

Existing Large and Medium Scale Industries

Type of Sectors Large Scale Industries Medium Scale Industries
Public Sector 7 1
Private Sector 6 2
Co-operative 1 0
Total 14 3
Source: District Industries Centre, Thrissur

Existing Service enterprises

1 The major Service enterprises are mainly Automobile Repairing & Service, IT Enabled Services, Tyre
retreading,
2 Gold chain cutting, Health services, Hotels & restaurants, meat processing, food grain milling /
processing,
3 Tourism and Ayurvedic health care package etc.

Connectivity

Road Connectivity
Road Connectivity Length in Kms
National Highway 41
State Highway 374
Major District Roads 1,682
Other district Roads 24
Rural/ Agriculture (village roads) 5,646
Source: Economic Review 2015-16

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Communication (as on 2014-15)
Type Number
Telephone connection 522033
Post offices 486
Density of telephone (Nos/1000) 253

Social Infrastructure
Health Institutions as of 2014-15
Institution Numbers
Allopathic Hospital 11
Ayurvedic Hospital 17
Beds in Ayurvedic hospitals 303
Community health centers 24
Primary health centers 68

Source: Compiled from Economic Review 2015

Banking as of 2014-15
Type of Bank Number
Commercial Bank 695
Source: Economic Review 2015

Education Institutions as of 2014-15

Type of School Number
Primary school 514
Upper schools 228
Secondary & senior secondary schools 502
Source: Economic Review 2015

Colleges Number
Arts and Science 30
Engineering 12
Nursing 4
Management 4
Medical 3
Ayurveda 1
Dental 1
Pharmacy 2
Polytechnic 7
TTI 24
Total 88
Source: Keralacolleges.com

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Investment Opportunities
Tourism

• Medical Tourism/Ayurveda
• Coastal belt-beach based resorts
• Health & Wellness centres, Super Specialty Hospital
Gem & Jewellery

• Gold and Fashion Jewellery manufacturing

• Gem & Jewellery Design centres, Training institutions
Biotechnology & Food Processing

• R & D Centres, Drug development, Tissue Culture

• Meat processing units, Cattle feed manufacturing
Small Scale Manufacturing

• Decorative Pottery units, Terracotta tiles

MSMEs
• Household Industries, Handloom Industries, Clay based Industries, Diamond and Gold
based industries, agro based industries and Book making industries etc are having more
potential in the District.
Service Industry

• Areas like Computer, Transport, Studio, Beauty Parlours, Tailoring, Flour Mills, Sales

Key Projects
• Medical University
• Shobha City
• Training Centre under Kerala Forest Research Institute

Palakkad

District at a Glance
Total Geographical 4,480 Km2
area
Population 28,10,892
Nearest Railway Palakkad
Station
Nearest airport Coimbatore Airport ( 73 Km from DHQ)
Major Exports Coconut oil, sortex rice, avil, processed tamarind, dry ginger, coffee
powder, kondattom, curry masala, pickles, soaps, readymade
garments, ayurvedic products, palada & palada mix, and
agricultural implements.
Key Institutions Fluid Control Research Institute (FCRI), Malabar Cements Ltd, BEML
Ltd, IIT

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 Major Crops Timber, Paddy, Coconut, Rubber, Palm trees, Pulses, Areca nut,
Tapioca, Ginger, Groundnut, Sugarcane, Cotton etc.
Industrial parks Western India KINFRA Ltd at Kanjikode
Light Engineering Industrial Park (LEIP) of KSIDC at Kanalpirivu,
Walayar
Mega Food Park of KINFRA
Industrial Cluster Agricultural implements, Sericulture
Other Major Industries The units in these estates produce agricultural implements, ferrous
castings, rubber products, cutleries, chemical, electronic and
electrical products / goods.
Many major firms have their plants here like UB Group, BPL
Group, Coca Cola and Pepsi.
Other prominent units include Paragon Steels Ltd, Malabar Cements
Limited, Marico Industries, Empee Distilleries, Kerala Agro
Machinery Corporation Ltd, Tatafone, etc.
The Small Industries Development Corporation (SIDCO) provides
infrastructure facilities for the small scale sector.
Other key factors Timber is the most important produce.

Administrative Set up
Particulars Numbers
Revenue Divisions 2
Taluks 6
Corporations -
Municipalities 7
Gram Panchayat 88
Source: Revenue Dept.,LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 413345 13.62%
2 Forestry & Logging 47132 1.55%
3 Fishing 13583 0.45%
Agriculture and Allied 474060
4 Mining and Quarrying 20976 0.69%
A TOTAL OF PRIMARY SECTOR 495036 16.32%
5 Manufacturing 331602 10.93%
5.1 Registered 148100
5.2 Un-registered 183502
6 Construction 257496 8.49%
7 Electricity, Gas and Water supply 31732 1.05%
7.1 Electricity 29427
7.2 Gas 494
7.3 Water supply 1811

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 B TOTAL OF SECONDARY SECTOR 620830 20.46%
Industry 641807
8 Transport, Storage& Comm. 251839 8.30%
8.1 Railways 23005
8.2 Transport by other means 184183
8.3 Storage 1853
8.4 Communication 42797
9 Trade, Hotel & Restaurants 544855 17.96%
10 Banking & Insurance 164677 5.43%
11 Real estate ownership, Business ,legal 455569 15.02%
12 Public Administration 160210 5.28%
13 Other Services 340786 11.23%
C TOTAL OF TERTIARY SECTOR 1917936 63.22%
DDP 3033803
Mid-year Population 2861910
Per capita Income(in Rupees) 106006

Source: Directorate of Economics & Statistics

Primary ,
16.32%

Secondary,
Tertiary , 20.46%
63.22%

GDDP - Palakkad

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern (Area in heactares)

Others, 1077, 0%

Net area Forest, Land put to non

sown, 136257, 31% agricultural use,
197192, 45231, 10%
44%

Barren &
uncultivable
land, 1795, 0%
Cultivable
Still Water, Fallow other waste,
15340, 4% Current fallow, than current 23794, 5%
12746, 3% fallow, 14152, 3%

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 Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water Resources
Length of Coastal Line (in Kms) Nil

Number of Rivers in the District 6

Reservoirs Water Spread Area (in Sq. Km) 48.65

Source: Department of Economics and Statistics

Production of Mineral Deposits (2015-16)

Type Name of Mineral Production (in Tonnes)
Major Mineral Granite Building Stone 3,537,246
Minor Mineral Lime Stone 616,120
Ordinary Earth 202,332
Laterite 165,635
Ordinary Sand 24,331
Brick Clay 1,610
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)
Type Total Number
Cattle farms 549
Poultry farms for meat 323
Poultry farms for egg 111
Slaughter houses 246
Veterinary Institutions 431
Source: Department of Economics and Statistics

Agriculture Workers’ Population

Main Workers
Population
Cultivators
34%
Agricultural
50%
Labourers
House hold
11% Industry Workers
1%
Other Workers
3%

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Industries

Overview of Industrial Sector as on 31.03.2016

Type Number
Total Industrial Unit 21,156
Registered Industrial Unit 7,842
Registered Medium Unit 31
Estimated Average No of Daily Worker employed in Small Scale 5
Industries (per unit)
No of Industrial Area 5
Source: District Industries Centre, Palakkad

Trend of Investment, Employment and Units registered (as on 31.03.2016)

Trend of Unit Registered

400,000

300,000

200,000

100,000

Number of Registered Units Employment

Investment (in Lakhs)

Source: District Industries Centre, Palakkad

Number of No. of people Investment (in Lakhs)

Registered Units employed
From 2006 7,842 49,242 484,465
2016 830 3,778 359,901

Existing Industries (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Type of Industry No of Units Investment (Lakhs No. of people

Rs.) employed
Agro based 1,558 33,870 10,527
Soda water 92 1,324 473
Cotton textile 11 38 59
Woolen, silk & artificial Thread based 489 2,595 3,594
clothes
Jute & jute based 71 1,306 567
Ready-made garments 502 2,539 3,619
& embroidery
Wood/wooden based furniture 236 4,055 1,208
Paper & Paper products 60 269 209

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Type of Industry No of Units Investment (Lakhs No. of people
Rs.) employed
Leather based 50 189 249
Chemical/Chemical based 44 16,187 430
Rubber, Plastic & petro based 285 12,702 1,825
Mineral based 36 1,380 561
Metal based (Steel Fab.) 222 1,446 1,159
Engineering units 732 7,258 207
Electrical machinery and transport 110 1,879 1,020
equipment
Repairing & servicing 320 2,013 990
Others 3,024 395,417 16,992
Total 7,842 484,465 43,689
Source: District Industries Centre, Palakkad

Existing Medium Scale Enterprises:

Sector Numbers No. of people employed

Private 10 868
Partnership 1 12
Proprietary 2 4
Public Limited 3 498
Others 1 66
Total 17 1448
Source: District Industries Centre, Palakkad

Existing Large Scale Industries/ Public Sector Undertaking

There are 55 large scale industries in the district

Connectivity

Road Connectivity
Roads Connectivity Length in Kms
National Highway 128
State Highway 245
Main District Highway 1927
Other district & Rural 81.08
Rural road/Agriculture roads 10503
Source: Economic Review 2015-16, Panchayat level statistics, 2011

Communication (as on 2014-15)

Type Number
Telephone connection 5,22,033
Post offices 432
Density of telephone (Nos/1000) 185
Source: Economic Review 2015

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Social Infrastructure

Health Institutions as of 2014-15

Type Number
Allopathic Hospital 9
Ayurvedic Hospital 7
Community health centers 19
Primary health centers 65
Total 100
Source: Compiled from Economic Review 2015

Banking as of 2014-15
Type Number
Commercial Bank 390
Source: Economic Review 2015

Education Institutes as of 2014-15

Type of School Number
Primary school 558
Upper Primary 217
Secondary & senior secondary schools 380
Source: Economic Review 2015

Colleges Number
Arts and Science 25
Engineering 9
Dental 1
Ayurveda 2
Hotel Management 1
Medical 1
Management 1
Pharmacy 1
Polytechnic 2
TTI 15
Total 58
Source: Keralacolleges.com

Investment Opportunities

1. Manufacturing
a. Iron & Steel units (Mild Steel, MS Ingots, TMT bars, etc)
b. Distilleries (Indian made Foreign Liquor, Beer, Alcohol)
c. Agro Products (Rubber products, Surgical Gloves, Heat Resistant Latex,
Crumb Rubber)
d. Plastic Products (Plastic Components, Precision Parts, Latex Collection Cups,
PET Bottles)
e. Packaging material (Tapes, Cartons)
2. Engineering
a. Control Valves, Telecom Products, Powerline, Electronics and Home
Automation products, Communication Equipments, Fuse, Panel Board,

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 HT&LT Cables, Auto Injection Moulding, Patient Monitoring System, Electro
Cardiogram
3. Cotton / Textiles
a. Knitted Hosiery, Fabrication, Garments, Cotton Yarn, Printing Yarn,
Bleaching, Dyeing Clothes, Blended Yarn.
4. Information Technology
a. Application software, web based solutions, ERPs
5. Chemicals
a. Potassium, Refractories, Cements, Aluminium Oxide, Silico Manganese,
Pharmaceutical items.
6. Medical Products
a. Medical implants, disposables
b. Service Industry
c. Textile & Tailoring
d. General Engineering
e. Flour Milling
f. Beauty Parlor
7. MSME
a. Textile Industry
b. Light Engineering
c. Food and Beverages
d. Wood base industry
e. Plastic based
f. Paper based

Key Projects
1. Kanjikode Railway Coach Factory
2. Integrated Textile Park
3. Defense Park

Malappuram

District at a Glance
Total Geographical area 3,550 Km2
Population 41,10,956
Nearest Railway Station Calicut Railway Station (43 Km from DHQ)
Nearest airport Karipur International Airport (22 Km from DHQ)
Major Exports Food products and treated rubber wood furniture
Key Institutions KINFRA Food Processing Park, Aligarh Muslim University
(Malappuram Campus), Kottakkal Arya Vaidya
Sala, KINFRA Neo Space
Major Crops Paddy, Coconut, Tapioca, Areca nut, Cashew nut, Banana,
Rubber, Pulses, Ginger, Pepper and Betel vine
Industrial parks KINFRA Neo Space at Kakkancherry
Industrial Cluster General engineering Industry, Wood Industry, Rubber
Industry, Garments Industry
Other Major Industries Handloom, Coir & Handicrafts.

Wood related business is widely common.

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 Major economy contributors of the district being timber
industry, fishery, tourism and spice trading
Other Key factors Foreign money remitted is the highest in the state.
The seed garden complex at Munderi is said to be the
biggest farm in entire Asia.

Administrative Set up
Particulars Numbers
Revenue Divisions 2
Taluks 7
Corporations -
Municipalities 12
Gram Panchayat 94
Source: Revenue Dept.,LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 323797 10.50%
2 Forestry & Logging 73721 2.39%
3 Fishing 28866 0.94%
Agriculture and Allied 426384
4 Mining and Quarrying 14343 0.47%
A TOTAL OF PRIMARY SECTOR 440727 14.29%
5 Manufacturing 114953 3.73%
5.1 Registered 51340
5.2 Un-registered 63613
6 Construction 363851 11.80%
7 Electricity, Gas and Water supply 18817 0.61%
7.1 Electricity 14734
7.2 Gas 580
7.3 Water supply 3502
B TOTAL OF SECONDARY SECTOR 497620 16.14%
Industry 511963
8 Transport, Storage& Comm. 282248 9.15%
8.1 Railways 10864
8.2 Transport by other means 227923
8.3 Storage 1412
8.4 Communication 42048
9 Trade, Hotel & Restaurants 571138 18.52%
10 Banking & Insurance 131570 4.27%
11 Real estate ownership, Business ,legal 488309 15.83%

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 12 Public Administration 131767 4.27%
13 Other Services 540397 17.52%
C TOTAL OF TERTIARY SECTOR 2145429 69.57%
DDP 3083776
Mid-year Population 4249310
Per capita Income(in Rupees) 72571

Source: Directorate of Economics & Statistics

Primary
Sector
14% Secondary
Tertiary
Sector
Sector
16%
70%

GDDP - Malappuram

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Others, 469, 0%

Forest, 103417,
29%

Net area sown,

178389, 50%
Land put to non
agricultural use,
47363, 13%
Barren &
uncultivable
Current fallow, land, 1098, 0%
Cultivable
7710, 2%
Fallow other waste, 6130,
Still Water, than current 2%
6047, 2% fallow, 4823, 2%

Land Utilization Pattern (Area in Hectares) –Malappuram

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

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 Water Resource
Length of Coastal Line (in Kms) 70
Number of Rivers in the District 5
Number of Reservoirs -
Reservoirs Water Spread Area (in Sq. Km) -
Source: Department of Economics and Statistics

Production of Mineral Deposits (2015-16)

1. Laterite stone is found abundantly in the midland areas. It is exploited economically for construction works
and hundreds of quarries cutting laterite stone giving employment to thousands.
2. Another major economic important mineral is granite building stone.

Type Name of Mineral Production (in Tonnes)

Major Mineral Granite Building Stone 16,99,320
Minor Mineral Ordinary Earth 1,38,764
Laterite 16,29,897
Brick Clay 10,347
Source: Dept. Of Mining and Geology

Animal Husbandry

Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Total Number
Cattle farms 148
Poultry farms for meat 343
Poultry farms for egg 249
Slaughter houses 154
Veterinary Institutions 234
Source: Department of Economics and Statistics

Agriculture Workers’ Population

Labour Population

Main Workers
Population
Cultivators
44% 50%
Agricultural
Labourers
House hold
Industry Workers
Other Workers
1%
3% 2%

Industries

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Overview of Industrial Sector (as on 31.03.2016)
Type Number
Total industrial unit 15,337
Number of registered industrial unit 13,969
Number of registered medium unit Nil
Estimated avg. no. of daily worker employed in small scale 5
industries (per unit)
No. of industrial area 1

Trend of Investment, Employment and Units registered (as on 31.03.2016)

Trend of Units Registered

18000
16000
14000
12000
10000
8000
6000
4000
2000
0
2006 - 2007 - 2008 - 2009 - 2010 - 2011 - 2012 - 2013 - 2014 - 2015 -
07 08 09 10 11 12 13 14 15 16

Number of Registered Units Employment

Investment (in Lakhs)

Source: District Industries Centre, Malappuram

Number of Registered No. of people Investment (in Lakhs)

Units employed
Since (2006) 6868 34849 62712
2016 1230 5701 8851

Existing Industries (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Investment (Lakhs No. of people

Type of Industry No of Units
Rs.) employed
Agro based 4,623 56,616 23,577
Soda water 85 476 263
Ready-made garments
1,050 5,996 8,172
& embroidery
Wood / wooden based
2,397 16,740 11,638
furniture
Paper & Paper products 410 5,422 2,676

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 Investment (Lakhs No. of people
Type of Industry No of Units
Rs.) employed
Leather based 588 5,002 2,646
Chemical/ Chemical based 24 11,534 232
Rubber, Plastic & petro based 644 28,856 8,769
Mineral based 48 2,208 224
Metal based (Steel Fab.) 658 3,084 2,884
Engineering units 1,722 7,053 6,939
Electrical machinery and
transport 399 4,530 1,794
equipment
Repairing & servicing 1,965 23,009 10,197
Others 724 8,477 3,475
Total 15,337 179,003 83,486
Source: District Industries Centre, Malappuram

Medium Scale Enterprises:

NA

Large Scale Industries/ Public Sector Undertaking

1. Keltron Electro Ceramics Ltd, Kuttipuram

2. Keltron Tool Room, Kuttipuram
3. KSRTC Body workshop, Eddappal
4. Malappuram Cooperative Spinning Mill, Paranakkad
5. Edarikkode, Co-operative Spinning Mill Edarikkode
6. MALCOTEX, Kuttippuram

Connectivity

Road Connectivity
Roads Connectivity Length in Kms
National Highway 150
State Highway 375
Major District Road 2148
Other district & Rural 1153
Rural road/Agriculture roads 17405
Source: Economic Review 2015-16

Communication (as on 2014-15)

Type Number
Telephone connection 6,10,522
Post offices 432
Density of telephone (Nos/1000) 148
Source: Economic Review 2015

Social Infrastructure

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Health Institutions as of 2014-15
Type Number
Allopathic Hospital 10
Ayurvedic Hospital 11
Community health centers 20
Primary health centers 86
Sub Centers 514
Total 641
Source: Compiled from Economic Review 2015,

Banking as of 2014-15
Type Number
Commercial Bank 428
Source: Economic Review 2015

Education Institution as of 2014-15

Type of School Number
Primary school 851
Upper Primary 357
Secondary & senior secondary schools 489
Source: Economic Review 2015

Colleges Number
Arts and Science 33
Engineering 7
Dental 3
Ayurveda 1
Medical 1
Nursing 4
Management 3
Pharmacy 3
Polytechnic 4
TTI 21
Total 80
Source: Keralacolleges.com

Investment Opportunities
1. IT & IT Enabled Services
a. Software Development
b. Business Process Outsourcing
c. Knowledge Process Outsourcing
d. Software Training Centres
2. Tourism
a. Medical Tourism/ Ayurveda
b. Hotels & Hospitality
c. Tours & Travels
3. Healthcare & Education
a. Hospitals

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 b. R&D Centres
c. Education & Training Centres
4. Textile
a. Handlooms, Spinning mills
b. Apparels & Garment manufacturing
5. Food Processing
a. Dairy Development
b. Wood Based Products
c. Spices Exports
6. MSME
a. General Engineering
b. Wood and Furniture
c. Food Processing
7. Service Industry
a. Light Engineering
b. Wood based Industry
c. Automobile workshop
d. ITI Enabled Service

Key Projects

1. EDU- HEALTH City

2. Eranad Knowledge City
3. SME Park

Kozhikode

District at a Glance
Particular
Total Geographical area 2,344 Sq. Km
Population 30,89,543
Nearest Railway Station Kozhikode (2 km from DHQ)
Nearest airport Calicut International Airport (28 From DHQ)
Major Exports Footwear, Marine Products, Software, Food products,
Soaps, Battery, Umbrella
Industrial Cluster General engineering Industry, Food processing, Rubber
Key Institutions Cyberpark, IIM Kozhikode, National Institute of
Technology (formerly known as REC), Indian Institute of
Spices Research, Centre for Water Resources
Development & Management (CWRDM), Western Ghats
Field Research Station (Zoological Survey of India),
Regional Filaria Training and Research Centre (under the
National Institute of Communicable Diseases)
Major Crops Coconut, rubber, tea, coffee, pepper, cardamom, areca
nut, ginger, nutmeg, cinnamon, tapioca and Paddy
Industrial parks Cyber parks, Nellikode
Industrial Growth Centres of KSIDC, Kinalur
Other Major Industries Marine processing units with major fish landing centres
like Beypore, major film production companies, spices,
silk etc. major traditional industries like handloom, coir,
cashew, bricks & tiles, handicrafts

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 Other Key factors One of the major tourist destination of the state

Administrative Set up
Particulars Number
Revenue Divisions 1
Taluks 4
Corporations 1
Municipalities 7
Gram Panchayat 70
Source: Revenue Dept.,LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 221877 6.48%
2 Forestry & Logging 36830 1.07%
3 Fishing 79405 2.32%
Agriculture and Allied 338112
4 Mining and Quarrying 9678 0.28%
A TOTAL OF PRIMARY SECTOR 347790 10.15%
5 Manufacturing 128220 3.74%
5.1 Registered 57266
5.2 Un-registered 70954
6 Construction 517793 15.11%
7 Electricity, Gas and Water supply 38947 1.14%
7.1 Electricity 31192
7.2 Gas 542
7.3 Water supply 7213
B TOTAL OF SECONDARY SECTOR 684960 19.99%
Industry 694638
8 Transport, Storage& Comm. 383669 11.20%
8.1 Railways 7665
8.2 Transport by other means 310906
8.3 Storage 232
8.4 Communication 64867
9 Trade, Hotel & Restaurants 758679 22.14%
10 Banking & Insurance 167013 4.87%
11 Real estate ownership, Business ,legal 467988 13.66%
12 Public Administration 191081 5.58%
13 Other Services 425337 12.41%
C TOTAL OF TERTIARY SECTOR 2393768 69.86%
DDP 3426518

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 Mid-year Population 3142373
Per capita Income(in Rupees) 109042
Source: Department of Economics and Statistics

Primary ,
10.15%

Secondary,
19.99%

Tertiary ,
69.86%

GDDP - Kozhikode

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Others, 524, 0%

Forest, 41386, Land put to non

17% agricultural use,
29798, 13%
Barren &
uncultivable
land, 784, 0%
Net area sown,
151899, 65% Cultivable
waste, 2585,
1%
Fallow other
Current than current
fallow, fallow, 1581,
2151, 1% 1%
Still Water,
3933, 2%

Land Utilization Pattern (Area in Hectares) –Kozhikode

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 Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water Resources
Number of Rivers in the District 5
Number of Reservoirs 3
Reservoirs Water Spread Area (in Sq. Km) 31.72
Source: Department of Economics and Statistics

Production of Mineral Deposits (2015-16)

Name of mineral Production in tonnes

Granite building stone 1449800
Laterite building stone 239988
Ordinary sand 181837
Ordinary earth 137157
River sand 14166
Brick clay 2877
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Total Number

Cattle farms 44
Poultry farms for meat 23
Poultry farms for egg 9
Slaughter houses 80
Veterinary Institutions 183
Source: Department of Economics and Statistics

Industries

Overview of Industrial Sector (as on 31.03.2016)

Type Number
Total industrial unit 18623
Registered industrial unit 8560
Registered medium unit 9
Estimated avg. No. of daily 23
worker employed in small scale industries (per Unit)
Employment in medium 1009
industries
Turnover of small scale industries (in Lakhs) 1841206

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Turnover of medium & large scale industries (in Lakhs) 82463
Source: District Industries Centre, Kozhikode

Trend of Investment, Employment and Units registered (as on 31.03.2016)

Trend of Units Registered
45000

40000

35000

30000

25000

20000

15000

10000

5000

0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

NUMBER OF REGISTERED UNITS EMPLOYMENT

INVESTMENT (In Lakh)

Source: District Industries Centre, Kozhikode

Number of registered No. of people Investment (in

units employed lakh)
since 2006
8560 83794 56494
2015-16 1156 36824
3721

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Type of industry Number of units Investment (in lakhs) No. Of people

employed
Agro based 1374 9350 6328
Soda water 57 186 216
Cotton textile 64 509 256
Woolen, silk & artificial. 7 11 (NA)
Thread based clothes.
Jute & jute based 4 85 33
Ready-made garments & 447 2190 3459
embroidery
Wood/wooden based furniture 365 926 1542
Paper & Paper products 161 3947 1083
Leather based 109 1649 1079
Chemical/Chemical based 40 220 325
Rubber, Plastic & petro based 2455 4366 2455
Mineral based 526 3042 3231
Metal based (Steel Fab.) 208 924 1032

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 Engineering units 618 2194 2054
Electrical machinery and 115 545 578
transport equipment
Repairing & servicing 1002 7173 7261
Others 159 1083 840
Total 7711 38399 31772
Source: District Industries Centre, Kozhikode

Existing Medium Scale Enterprises:

Type Number Investment No. of people

(in Lakhs) employed
Private 7 3587 886
Public 1 650 83
Partnership 1 335 20
Others 1 700 20
Total 10 5272 1009

Existing Large Scale Industries/ Public Sector Undertaking

1 M/s Kerala feeds ltd, thiruvangur, koyilandy

2 Peekay steel casting, Nallalam
3 Peekay rerolling mills, Cheruvannur
4 Steel complex, Cheruvannur.
5 Malabar spinning mill( thiruvannur cotton mill

Connectivity

Road Connectivity
Roads Connectivity Length in Kms
National Highway 130
State Highway 377
Major District Road 2064
Other district & Rural 208
Rural road/Agriculture roads 9604
Source: Economic Review 2015-16, Panchayat level statistics, 2011

Communication (as on 2014-15)

Type Number
Telephone connection 165129
Post offices 410
Density of telephone (Nos/1000) 54
Source: Economic Review 2015

Social Infrastructure
Health Institutions as of 2014-15
Type Number
Allopathic Hospital 12
Ayurvedic Hospital 8

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 Community health centers 64
Unani Hospital 15
Dispensaries 410
Primary health centers 142
Sub Centers 18
Total 669
Source: Compiled from Economic Review 2015,

Banking as of 2014-15
Type Number
Commercial Bank 423
Source: Economic Review 2015

Education Institutions as of 2014-15

Type Number
Primary school 718
Upper Primary 318
Secondary & senior secondary schools 447
Source: Economic Review 2015

Colleges Number
Arts and Science 38
Engineering 7
Dental 3
Ayurveda 1
Medical 3
Hotel Management 1
Homeopathy 1
Nursing 6
Management 2
Pharmacy 3
Polytechnic 2
TTI 24
Total 91
Source: Keralacolleges.com

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Investment Opportunities
1. IT & IT Enabled Services
a. Software Development
b. Business Process Outsourcing
c. Knowledge Process Outsourcing
d. Software Training Centres
2. Tourism
a. Medical Tourism/ Ayurveda
b. Hotels & Hospitality
c. Tours & Travels
3. Textile
a. Handlooms, Power looms, Cotton Weaving
b. Apparels & Garment manufacturing
4. Others
a. Timber Industry
b. Animal Husbandry & diary development
c. Tiles & Brick manufacturing
d. Pepper & spice trading
5. MSME
a. Agro/Food based units especially Coconut based.
b. Light/Mechanical/Automobile Engineering Products and
c. Service Sector.
d. Wood Products.
e. Footwear.
f. Handicraft
g. Rubber& Plastic Products.
h. Paper and paper products
i. Construction materials.
j. IT related & software development.
k. Modular furniture.
l. Printing and Allied Units
m. Readymade garments and allied textile products

Key Projects

1. National Institute of Warship/Submarine Design & Indigenization Centre by Mazagon

Dock Limited (MDL) at Beypore, Kozhikode
2. Kerala Sustainable Urban Development Project aided by World Bank
3. Sarovaram (Tourism Project)
4. Monorail Project, Kozhikode
5. Beypore Port Development Project
6. Kuttiyadi Coconut Industrial Park

Wayanad

District at a glance
Total Geographical area 2,131 Km2
Population 8,16,558
Nearest Railway Station Kozhikode railway station (75 Km from DHQ)
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 Nearest airport Karipur International Aiport (97 Km from DHQ)
Major Exports Spices
Key Institutions M.S Swaminathan Research Foundation, Ambedkar Memorial
Rural Institute for Development (AMRID), Research & Extension
Wing of Coffee Board
Major Crops Coffee, tea, cardamom, vanilla, spices and condiments
Industrial parks KINFRA Small Industries Park at Kalpetta

Industrial Cluster Agro based products, Minerals and mining

Other Key Factors Second largest wildlife sanctuary in Kerala

Administrative Set up
Particulars Numbers
Revenue Divisions 1
Taluks 3
Corporations -
Municipalities 3
Gram Panchayat 23
Source: Revenue Dept.,LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 208921 25.11%
2 Forestry & Logging 16124 1.94%
3 Fishing 1350 0.16%
Agriculture and Allied 226395
4 Mining and Quarrying 5030 0.60%
A TOTAL OF PRIMARY SECTOR 231425 27.82%
5 Manufacturing 22108 2.66%
5.1 Registered 9874
5.2 Un-registered 12234
6 Construction 54112 6.50%
7 Electricity, Gas and Water supply 3531 0.42%
7.1 Electricity 2957
7.2 Gas 134
7.3 Water supply 441
B TOTAL OF SECONDARY SECTOR 79752 9.59%
Industry 84781
8 Transport, Storage& Comm. 83079 9.99%
8.1 Railways 0
8.2 Transport by other means 71686
8.3 Storage 902
8.4 Communication 10491

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 9 Trade, Hotel & Restaurants 112237 13.49%
10 Banking & Insurance 47112 5.66%
11 Real estate ownership, Business ,legal 138305 16.62%
12 Public Administration 28443 3.42%
13 Other Services 111566 13.41%
C TOTAL OF TERTIARY SECTOR 520742 62.60%
DDP 831919
Mid-year Population 827258
Per capita Income(in Rupees) 100563
Source: Directorate of Economics & Statistics

Primary
Sector
28%

Tertiary Secondar
Sector y Sector
63% 9%

GDDP - Wayanad

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Others, 107, 0%

Forest, 78787,
Net area sown, 37%
115144, 54%
Barren &
uncultivable
land, 71, 0%

Land put to non

agricultural use,
11295, 5%
Cultivable waste,
Still Water, 3904,
2% Fallow other 963, 1%
Current than current
fallow, fallow, 589,
2106, 1% 0%

Land Utilization Pattern (Area in Hectares) - Wayanad

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

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Water Resources
Length of Coastal Line (in Kms) -
Number of Rivers in the District 1
Number of Reservoirs 2
Reservoirs Water Spread Area (in Sq. Km) 29.37
Source: Department of Economics and Statistics

Production of Mineral Deposits (2015-16)

Type Name of mineral Production (in tonnes)
Major mineral Nil Nil
Minor mineral Granite building stone 965950
Ordinary sand 33016
Ordinary earth 226546
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Number
Cattle farms 80
Poultry farms for meat 32
Poultry farms for egg 1
Slaughter houses 40
Source: Department of Economics and Statistics

Agriculture workers population

Agriculture workers Population

Main Workers
27% Population
Cultivators

50%
Agricultural
Labourers
1%
House hold
Industry Workers
13%
Other Workers

9%

Industries

Overview of Industrial Sector (as on 31.03.2016)

Type Number
Registered industrial unit 2530
Registered medium & large unit 3
Estimated avg. No. Of daily worker employed in small
5
scale industries
Employment in large and medium industries 148
No. of industrial area 1
Turnover of small scale industries. (In Lakhs) 74100
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 Type Number
Turnover of medium & large (In Lakhs) 7400
Source: District Industries Centre, Wayanad

Trend of Investment, Employment and Units registered (as on 31.03.2016)

Trend of Units Registered
8,000
6,000
4,000
2,000
-

INVESTMENT
EMPLOYMENT
NUMBER OF REGISTERED UNITS

Source: District Industries Centre, Wayanad

Number of registered No. of people Investment (in

units employed lakh)
since 2006 2530 13161 21210

2015-16 184 777 911

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Type of industry Number of Investment No. of people

units (lakhs.) employed
Agro based 581 3,167 2,790
Ready-made garments & embroidery 310 754 1,486
Wood/wooden based furniture 357 2,671 2,092
Paper & paper products 24 138 108
Leather based 21 439 180
Chemical/chemical based 91 736 769
Rubber, plastic & petro based 61 345 235
Metal based (steel fab.) 288 1,141 1,126
Engineering units 220 1,455 1,462
Electrical machinery and transport 132 1,250 728
equipment
Repairing & servicing 173 1,176 733
Others 272 7,936 1,452
Total 2,530 21,209 13,161
Source: District Industries Centre, Wayanad

Existing Medium Scale Enterprises:

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 Type of Sector Number Total Investment (in No. of people employed
Lakhs)
Private 2 1100 83
Co-operative Society 1 800 65
Total 3 1900 148

Existing Large Scale Industries/ Public Sector Undertaking

Nil

Connectivity

Road Connectivity
Roads Connectivity Length in Kms

National Highway 55

State Highway 129

Main District highway 900

Other district & Rural 80

Rural road/Agriculture roads 4261

Source: Economic Review 2015-16, Panchayat level statistics, 2011

Communication (as on 2014-15)

Type Number
Telephone connection 29807
Post offices 162
Density of telephone (Nos/1000) 36.46
Source: Economic Review 2015

Social Infrastructure

Health Institutions as of 2014-15

Type Number
Allopathic Hospital 4
Ayurvedic Hospital 3
Community health centers 9
Primary health centers 14
Sub Centers 32
Unani Hospital 1
Dispensaries 4
Private Hospitals 17
Total 84
Source: Compiled from Economic Review 2015

Banking as of 2014-15
Type Number
Commercial Bank 115
Rural Banks 28
Co-operative Banks 45
PLDB Branches 3
Source: Economic Review 2015

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Education Institutions as of 2014-15
Type of School Number
Primary school 111
Upper Primary 74
Secondary & senior secondary schools 67
Source: Economic Review 2015

Colleges Number
Arts and Science 8
Engineering 1
Hotel Management 1
Nursing 1
Polytechnic 2
TTI 8
Total 21
Source: Keralacolleges.com

Investment Opportunities

1. Tourism
a. Medical Tourism (Ayurveda)
b. Adventure tourism
c. Hotels & Hospitality
2. Agriculture & Animal husbandry
a. Dairy
b. Floriculture, Medicinal plants & Herbal medicines
c. Spices & manufacturing of spices extracts
d. Coffee &Tea cultivation
e. Timber units
3. Education
a. International School
4. Potential for New MSME
a. Potential for craft goods like bamboo product
b. Agro Food Processing Sector

Key Projects

1. KINFRA Small Industries Park, Wayanad

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Kannur

District at a Glance
Particulars Kannur
Total Geographical area 2,966 Sq Km
Population 25,25,637
Nearest railway station Kannur Railway Station (25 km from DHQ)
Nearest airport Calicut International Airport (115 Km from DHQ)
Major Exports Textiles, Wood Products
Key Institutions National Institute of Fashion Technology, Institute of
Handloom and Textile Technology, Apparel Training and
Design Centre, Indian Naval Academy.
Major Crops Cashew, Coconut, Rubber, Pepper
Industrial parks KSIDC Industrial Growth Centre, Kuthuparamba
KINFRA Small Industries Park, Thalassery
KINFRA Textile Park, Nadukani
Cyber Park, Taliparamba
Industrial cluster General Engineering, Wood Industries, Offset printers
Industry, Beedi Industries
Industries Textile, Handloom and Wood-based industry
Other Key Factors Asia's largest cinnamon estate producing cinnamon spice

Administrative Set up
Particulars Numbers
Revenue Divisions 1
Taluks 4
Corporations 1
Municipalities 9
Gram Panchayat 71
Source: Revenue Dept., LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 278130 9.79%
2 Forestry & Logging 24179 0.85%
3 Fishing 26387 0.93%
Agriculture and Allied 328696
4 Mining and Quarrying 10331 0.36%
A TOTAL OF PRIMARY SECTOR 339027 11.94%
5 Manufacturing 101688 3.58%
5.1 Registered 45415
5.2 Un-registered 56273
6 Construction 384845 13.55%
7 Electricity, Gas and Water supply 17398 0.61%
7.1 Electricity 13235
7.2 Gas 468

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 7.3 Water supply 3695
B TOTAL OF SECONDARY SECTOR 503931 17.74%
Industry 514262
8 Transport, Storage& Comm. 272475 9.59%
8.1 Railways 6628
8.2 Transport by other means 209198
8.3 Storage 1943
8.4 Communication 54706
9 Trade, Hotel & Restaurants 624420 21.98%
10 Banking & Insurance 144943 5.10%
11 Real estate ownership, Business ,legal 379923 13.38%
12 Public Administration 157298 5.54%
13 Other Services 418483 14.73%
C TOTAL OF TERTIARY SECTOR 1997542 70.32%
DDP 2840500
Mid-year Population 2553509
Per capita Income(in Rupees) 111239
Source: Directorate of Economics & Statistics

Primary
Sector
12% Secondar
y Sector
Tertiaty 18%
Sector
70%

GDDP – Kannur, Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Others, 710, 0%

Forest, 48734,
16%
Land put to non
Barren &
agricultural use,
uncultivable
32457, 11%
land, 1690, 1%

Cultivable waste,
Net area sown, 7897, 3%
192923, 65% Fallow other
than current
fallow, 3117, 1%

Current fallow,
Still Water, 6472,
3112, 1%
2%
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 Land Utilization Pattern (Area in Hectares) - Kannur

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Net Sown Area = Total Cropped Area – Area sown more than once

Water Resources
Length of Coastal Line (in Kms) 82
Number of Rivers in the District 6
Number of Reservoirs 1
Reservoirs Water Spread Area (in Sq. Km) 6.48

Production of Mineral Deposits (2015-16)

Production (in
Type Name of mineral
tonnes)
Major mineral Granite building stone 997100
Laterite 597405
China clay 75
Minor mineral Ordinary sand 696621
River sand 15898
Ordinary earth 8060
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Total Number

Cattle farms 75
Poultry farms for meat 19
Poultry farms for egg 15
Slaughter houses 37
Veterinary Institutions 169
Source: Department of Economics and Statistics

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Agriculture worker’s population
Workers Population

Main Workers
Population

43% 50% Cultivators

Agricultural
Labourers
House hold
Industry Workers
Other Workers
1% 4% 2%

Industries

Overview of Industrial Sector (as on 31.03.2016)

Type Numbers
Total industrial unit 18080
Registered industrial unit 6904
Registered medium & large unit 5
Estimated avg. No. of daily worker employed in small scale industries 1.19
Employment in large and medium industries 147
No. of industrial area 5
Turnover of small scale industries (in Lakhs) 86100
Turnover of medium & large scale industries (In Lakhs) 14571
Source: District Industries Centre, Kannur

Trend of Investment, Employment and Units registered (as on 31.03.2016)

Trend of Units Registered
25,000
20,000
15,000
10,000
5,000
-

NUMBER OF REGISTERED UNITS EMPLOYMENT INVESTMENT

(lakh Rs.)

Source: District Industries Centre, Kannur

Number of registered No. of people employed Investment (in

units lakh)
Since 2006 6904 41211 74261

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 2015-16 364 1807 3752

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Type of industry Number of Investment No. of people

units (lakhs) employed
Agro based 1,091 7,492 4,116
Soda water 97 545 334
Cotton textile 223 1,564 2,082
Ready-made garments 722 3,260 5,078
& embroidery
Wood/wooden based 801 12,524 6,505
furniture
Paper & Paper products 62 862 425
Leather based 102 154 214
Chemical/Chemical based 195 2,749 1,163
Rubber, Plastic & petro 132 3,812 1,214
based
Mineral based 6 211 31
Metal based (Steel Fab.) 183 1,137 857
Engineering units 614 1,957 2,127
Electrical machinery and 58 457 188
transport equipment
Repairing & servicing 141 1,431 832
Others 2,477 36,105 16,045
Total 6,904 74,261 41,211
Source: District Industries Centre, Kannur

Medium Scale Enterprises:

Nil

Large Scale Industries/ Public Sector Undertaking

1 Kerala Clays and Ceramic Limited

2 Cannanur Co-operative Spinning Mills Limited
3 Kerala State Handloom Development Corporation Limited
4 Keltron Component Complex Limited

Connectivity

Road Connectivity
Roads Connectivity Length in Kms
National Highway 80.5
State Highway 245
Main District highway 25641
Other district & Rural 2013
Source: Economic Review 2015-16,

Communication (as on 2014-15)

Type Number
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 Telephone connection 1071832

Post offices 382

Density of telephone (Nos/1000) 444

Source: Economic Review 2015

Social Infrastructure

Health Institutions as of 2014-15

Type Number
Allopathic Hospital 9
Ayurvedic Hospital 9
Community health centers 11
Primary health centers 82
Sub Centers 109
Total 220
Source: Compiled from Economic Review 2015, Panchayat Level Statistics 2011 and DHS

Banking as of 2014-15
Type Number
Commercial Bank 366
Source: Economic Review 2015

Education Institutions as of 2014-15

Type of School Number
Primary school 730
Upper Primary 365
Secondary & senior secondary schools 352
Source: Economic Review 2015

Colleges Number
Arts and Science 24
Engineering 3
Nursing 5
Polytechnic 3
TTI 11
Ayurveda 2
Medical 2
Management 4
Dental 1
Pharmacy 3
Total 58
Source: Keralacolleges.com

Investment Opportunities

1. Textile
a. Handlooms, Power looms, Weaving

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 b. Apparels & Garment manufacturing
2. Wood Industry
a. Furniture
b. Plywood and softwood
3. Tourism
a. Medical Tourism/ Ayurveda
b. Hotels & Hospitality
c. Tours & Travels
4. IT & IT Enabled Services
a. Software Development
b. Business Process Outsourcing
c. Knowledge Process Outsourcing
d. Software Training Centres
5. MSME
a. IT Enabled services
b. Food Processing Units
c. Cashew Processing
d. Agro based,
e. Garment Making

6. Service Industry

a. Ayurvedic health rejuvenation services,

b. Ethnic Food court

Key Projects

1. Kannur International Airport

2. Azhikkal Port

Kasaragod

District at a Glance
Total Geographical area 1,992 Km2
Population 13,02,600
Nearest Railway Station Kasaragod railway station (3 KM from DHQ)
Nearest airport Mangalore Airport (60 Km from DHQ)
Major Exports -
Key Institutions Central Plantation Crops Research Institute, LBS College of
Engineering, Rajiv Gandhi Institute of Pharmacy
Major Crops Cash crops like coconut, Areca nut, Cashew, Rubber,
Ginger, etc.
Industrial parks KINFRA Small Industries Park at Seethangoli
Industries Minerals and Mining

Administrative Set up
Particulars Number
Revenue Divisions 1
Taluks 4
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 Particulars Number
Corporations -
Municipalities 3
Gram Panchayat 38
Source: Revenue Dept., LSGD Elections 2015

Gross District Domestic Product

Gross District Domestic Product (GDDP ) (2013 – 14)
Base year: 2004-05
Particulars INR in Lakhs % Contribution
1 Agriculture & Allied Activities 275237 20.40%
2 Forestry & Logging 20935 1.55%
3 Fishing 15068 1.12%
Agriculture and Allied 311240
4 Mining and Quarrying 10489 0.78%
A TOTAL OF PRIMARY SECTOR 321729 23.85%
5 Manufacturing 8847 0.66%
5.1 Registered 3951
5.2 Un-registered 4896
6 Construction 139479 10.34%
7 Electricity, Gas and Water supply 7830 0.58%
7.1 Electricity 5957
7.2 Gas 204
7.3 Water supply 1670
B TOTAL OF SECONDARY SECTOR 156156 11.57%
Industry 166645
8 Transport, Storage& Comm. 143176 10.61%
8.1 Railways 11942
8.2 Transport by other means 104675
8.3 Storage 580
8.4 Communication 25978
9 Trade, Hotel & Restaurants 255026 18.90%
10 Banking & Insurance 74489 5.52%
11 Real estate ownership, Business ,legal 187987 13.93%
12 Public Administration 35494 2.63%
13 Other Services 175079 12.98%
C TOTAL OF TERTIARY SECTOR 871251 64.58%
DDP 1349136
Mid-year Population 1335521
Per capita Income(in Rupees) 101019
Source: Directorate of Economics & Statistics

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 Primary
Sector
24%

Tertiary
Sector
65%

Secondary
Sector
11%

GDDP Kasaragod

Source: Department of Economics and Statistics, GSDP of Kerala & India (2004-05 to 2013-14)

Agriculture and Allied Activities

Land Utilization Pattern

Forest, 5625, 3%
Land put to non
Others, 473, 0% agricultural use,
24185, 12%
Barren & Cultivable
uncultivable waste,
land, 3700, 8560, 4%
2%
Fallow other
than current
fallow, 2138, 1%
Current fallow,
2129, 1%
Net area sown, Still Water,
148064, 75% 4292, 2%

Land Utilization Pattern (Area in Hectares) - Kasaragod

Source: Agriculture Statistics 2013-14, Department of Economics & Statistics Kerala

“Others” include Permanent pastures & other grazing land, Land under misc. tree crops, marshy land, water
logged area and Social Forestry

Water Resources
Length of Coastal Line (in Kms) 70
Number of Rivers in the District 12
Number of Reservoirs 1
Reservoirs Water Spread Area (in Sq. Km) 0.44
Source: Department of Economics and Statistics

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Production of Mineral Deposits (2015-16)
Type Name of mineral Production (in tonnes)
Major mineral Laterite 125,10,141
Minor mineral Ordinary sand 2,01,823
Granite stone 98,701
River sand 20,781
China clay 4,380
Source: Dept. Of Mining and Geology

Animal Husbandry
Details of Farms, Slaughter Houses, Veterinary Institutions (2010-11)

Type Total Number

Cattle farms 145
Poultry farms for meat 220
Poultry farms for egg 15
Slaughter houses 46
No of Veterinary Institutions 111
Source: Department of Economics and Statistics

Agriculture workers’ population

Agricultural Workers' Population

Workers

Cultivators

41%
Agricultural
50%
Labourers
House hold
Industry Workers
Other Workers
2% 4%
3%

Industries
Overview of Industrial Sector (as on 31.03.2016)
Type Numbers
Registered industrial unit 4234
Registered medium & large unit 2
Estimated avg. No. Of daily worker employed in small 3.54
scale industries (per Unit)
Employment in large and medium industries 1236
No. of industrial area 8
Turnover of medium & large scale industries (in Lakhs) 7100
Source: District Industries Centre, Kasaragod

Trend of Investment, Employment and Units registered (as on 31.03.2016)

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 Trend of Units Registered
12,000
10,000
8,000
6,000
4,000
2,000
-

NUMBER OF REGISTERED UNITS EMPLOYMENT INVESTMENT (IN LAKHS)

Source: District Industries Centre, Kasaragod

Number of registered No. of people Investment (in

units employed lakh)
Since 2006 4,234 20,777 37,896

2015-16 257 1,111 6,370

Existing Enterprises (as on 31.03.2016)

Details of Existing Micro and Small Enterprises

Type of Industry Number of units Investment No. of people

(in lakhs) employed
Agro based 90 219 709
Soda Water 59 NA NA
Cotton textile 100 209 975
Ready Made garments embroidery 604 747 2,493
Wood/wooden based furniture 101 1,442 893
Paper & Paper Products 43 254 226
Leather based 18 52 120
Chemical/Chemical Based 86 496 551
Rubber, Plastic & Petro based 139 1,036 744
Mineral Based 100 1,049 787
Metal based (Steel fab) 490 927 1,818
Electrical machinery and transport 12 33 36
equipment
Repairing & servicing 84 137 224
Total 1,926 6,601 9,576
Source: District Industries Centre, Kasaragod

Medium Scale Enterprises:

Nil

Large Scale Industries/ Public Sector Undertaking

1. HAL, KINFRA Park,
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2. BHEL

Connectivity

Road Connectivity
Roads Connectivity Length in Kms
National Highway 86
State Highway 142
Main District highway 1301
Other district & Rural 416
Rural road/Agriculture roads 2999
Source: Economic Review 2015-16, Panchayat level statistics, 2011

Communication (as on 2014-15)

Type Number
Telephone connection 13,67,495
Post offices 234
Density of telephone (Nos/1000) 374
Source: Economic Review 2015

Social Infrastructure

Health Institutions as of 2014-15

Type Number
Allopathic Hospital 4
Ayurvedic Hospital 5
Community health centers 9
Primary health centers 40
Dispensaries 36
Total 94
Source: Compiled from Economic Review 2015

Banking as of 2014-15
Type Number
Commercial Bank 206
Source: Economic Review 2015

Education Institutions as of 2014-15

Type of School Number
Primary school 272
Upper Primary 153
Secondary & senior secondary schools 84
Source: Economic Review 2015

Colleges Number
Arts and Science 12
Engineering 2
Dental 2
Nursing 1
Polytechnic 3
TTI 2

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 Management 1
Pharmacy 1
Total 24
Source: Keralacolleges.com

Investment Opportunities

1. Manufacturing
a. Wood & Rubber-based units, Light Engineering units
b. Building materials, Mineral based units
2. Tourism
a. Theme Parks, Resorts
3. Textiles & Handicrafts
a. Garment manufacturing, Handloom, Handicrafts
4. MSME
a. IT Enabled services
b. Food Processing Units
c. Cashew Processing
d. Agro based
e. Garment Making

Key Projects

1. KINFRA Small Industrial Park, Seethangoli

2. Cheemeni Power Project
3. Cyber Park, Cheemeni

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Annexure V – Brand Listing

Sector Brand/Company

Advertising & Media Time Ads

Advertising & Media Aiswaria Advertising

Advertising & Media Chitra Painters

Advertising & Media Teekeycee Advertisers

Advertising & Media Globex Media Advertising Network

Agriculture, Food Processing Poabs

Banking & Finance ESAF

Banking & Finance Equity Intelligence (EQ)

Banking & Finance GEO VPL Finance Private Limited

Banking & Finance Hedge Equities

Banking & Finance Kosamattam Finance

Banking & Finance KLM Group

Banking & Finance South Indian Bank

Banking & Finance State Bank of Travancore

Banking & Finance Irinjalakuda Credit and Leasing Company

Banking & Finance Federal Bank

Banking & Finance Kerala Financial Corporation

Banking & Finance Kerala Gramin Bank

Banking & Finance The New Trichur Company

Banking & Finance Acumen Capital Market India Limited

Banking & Finance Irinjalakuda Town Co-operative Bank

Banking & Finance Moat

Banking & Finance Niravath Jubily Chits India Pvt. Limited

Banking & Finance Karuvanoor Service Cooperative Bank

Banking & Finance,

Healthcare, Gems &
Jewellery Manappuram Group

Communication Kings Broadband

Construction Kap India

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Sector Brand/Company

Construction Formz Plus

Construction Powerlink Builders

Construction Lord Krishna Builders

Construction SPACE Builders

Drugs & Pharma MVM Ayurvedic Research Lab

Drugs & Pharma Leo Group

Education and Training SCMS Group of Educational Institutions

Education and Training FISAT

Education and Training Networkz Systems

Engineering Prime Roofing Solutions Private Limited

Food Processing Kitchen Treasures - Synthite

Food Processing Pappai Icecream

Food Processing Double Horse - Manjila Group

Food Processing GEO Seafoods

Food Processing Kerafed

Food Processing Neera

Food Processing Pavizham

Food Processing Aroma Fresh

Food Processing KSE Limited

Food Processing Meat Products of India

Food Processing Major Foods

Food Processing Tierra Food India Private Limited

Food Processing KPL Oil Mills

Food Processing Kilban Foods

Food Processing Elite Foods

Food Processing, Tourism

& Hospitality Parisons

Furniture Paul & Sons WOODESIGNS

Gems & Jewellery Bhima

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Sector Brand/Company

Gems & Jewellery Josco

Gems & Jewellery M.O.D Signature Jewellery

Gems & Jewellery Sunny Diamonds

Gems & Jewellery Amy Jewellery Designs

Gems & Jewellery Alapatt Jewellers

Gems & Jewellery Malabar Gold

Gems & Jewellery Kalyan Jewellers

Gems & Jewellery Alukkas

Gems & Jewellery A. Geeri Pai Jewellers

Healthcare Aster Medicity

Healthcare Kandamkulathy Vaidyasala

Healthcare Kinder - Women's Hospital and Infertility Centre

Healthcare Sunrise Hospital

Healthcare Punarnava Ayurveda Hospital

Healthcare Vaidyaratnam

Healthcare Rajagiri Hospital

Healthcare Medivision

Healthcare KIMS Hospital

Healthcare Lakeshore

Healthcare Ananthapuri Hospital

Healthcare, Drugs & Pharma Kottakkal Arya Vaidya Sala

IT Litmus 7

IT Expose InfoTech India Private Limited

IT, Education and Training,

Food Processing NEST Group

Manufacturing Premium Ferro Alloys Limited

Manufacturing V-Guard

Manufacturing Malabar Cements

Manufacturing Minar Group

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Sector Brand/Company

Manufacturing Thomson PVC Pipe

Manufacturing Kenza Group

Manufacturing INDWAY

Manufacturing Paragon

Manufacturing Catrix

Manufacturing Malabar Extrusion Private Limited

Manufacturing Sany Star

Manufacturing Aqua Tech

Manufacturing Artic Bath

Manufacturing Spinner Pipes

Manufacturing VKC

Manufacturing Safeguard Lightings (India) Private Limited

Manufacturing GK Electric Industries

Manufacturing E-Power Industries

Manufacturing ResiTech Electricals

ManuFacturing Star Enterprises

Manufacturing Zahra

Manufacturing Beacon Power Systems

Manufacturing HLL Lifecare Limited

Manufacturing Lunar Group

Manufacturing , Food
Processing Mardec R.K. Latex Private Limited (MRK)

Manufacturing, Education &

Training, Tourism &
Hospitality, Transport Tolins Tyre

Manufacturing, Real Estate

& Construction Nikshan Electronics

Anna Group - Anna Aluminium, Saras, Chakson, Kitex,

Manufacturing, Textile Scoobee Day,

Others NOLTA - Kottaram Group

Others Pittappillil Agencies

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Sector Brand/Company

Others ABC Sales Cooperation

Others Kalpana Family Salon & Spa

Others Vision Motors Pvt. Ltd

Others Kudumbashree

Others Balan Associates

Others Ace Finepack

Others Global Labs and Consultants

Others Sharewealth

Others Navya Bake Shop

Others Nandanam Sanitaries

Others Phases

Others Aquaneeta

Others Lijan Greentech

Others Nare

Others R R Enterprises

Others Kerala Switchgear Sales Corporation

Others DC Books

Others Best Bakers

Others Cochin Bakery

Others Mango Bakers

Others Nila Bake House

Others Cake Hut

Others Lulu International

Others Dhathri Ayurveda Group

Real Estate & Construction Asset Homes

Real Estate & Construction CIAL

Real Estate & Construction Artech Realtors

Real Estate & Construction KINFRA

Real Estate & Construction Melonwood Homes

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Sector Brand/Company

Real Estate & Construction PRS Builders

Real Estate & Construction Property Nation

Real Estate & Construction Confident Group

Real Estate & Construction Kent Constructions Private Limited

Real Estate & Construction Skyline Builders

Real Estate & Construction Abad Builders

Real Estate & Construction Lord Krishna Builders

Real Estate & Construction Mather Group

Real Estate & Construction National Builders

Real Estate & Construction Desai Homes

Retail BISMI

Retail QRS

Retail Gem Lights Home Décor

Sector Name

Textile Milan Design

Textile Seemati

Textile Hantex

Textile Prince Fashions

Textile Silky Weddings

Textile Stills Shirs & Trousers

Textile Jayalakshmi

Textile Kalyan Silks

Textile Kalyan Kendra

Textile V-Star

Tourism & Hospitality Alhind Tours and Travels

Tourism & Hospitality Paragon Restaurant

Tourism & Hospitality Top in Town

Tourism & Hospitality VHS Hospitality Services

Transport Trans Asia Line

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Sector Brand/Company

Retail QRS

Retail Gem Lights Home Décor

Sector Name

Textile Milan Design

Textile Seemati

Textile Hantex

Textile Prince Fashions

Source: Dhanam Publication “Hot Brands of Kerala” Vol I, 2016, KPMG Analysis

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Page 133 of 134

 aa0

Thank you

The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavour to provide
accurate and timely information, there can be no guarantee that such information is accurate
as of the date it is received or that it will continue to be accurate in the future. No one should
act on such information without appropriate professional advice after a thorough examination
of the particular situation.
@2017 KPMG Advisory Services Private Ltd, an Indian Private Company and a member firm of
the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.