A) The idea and its competition

(Aref)
 What is the market need for the product/service?

In 2020, India became the world’s sixth-largest economy and is frequently labelled the world’s
fastest-growing major economy, with an annual GDP growth regularly above 7 percent. Two-way
merchandise trade between Canada and India was $10.1 billion in 2019; however, due primarily to
the COVID-19 pandemic, two-way trade decreased to $8.7 billion in 2020. Expanding trade and
investment with such large and fast-growing markets is a priority for the Government of Canada.

However, India represents just a small percentage of BC exports, but India’s increasing stability and
strong economy make it increasingly attractive. India is among the world’s five largest markets for
wood and wood products, and it represents significant potential for Canada’s forestry and
building-product sector. According to a study conducted by World Bank, the organized furniture
market across the country was expected to grow at a rate of about 20 percent annually over the
next few years.

Limited domestic supplies, coupled with booming retail furniture, handicraft and hospitality sectors
is driving demand for newer species. Tree loss in the nation has been consistent over the last 20
years. The damage along the north eastern parts of the country was severe in the last five years, due
to the ‘’slash and burn’’ cultivation approach. On February 2018, the Ministry of Environment,
Forests and Climate Change published the 15th forest cover assessment in the India State of Forest
Report (ISFR) 2017. According to the report, India’s forest and tree cover stands at 24.4 percent of
total land area, and is increasing at a very slow pace. At present, India’s forest and tree cover has
increased by one percent, equivalent to 3,097 square miles (sq. mi).

The top five states where forest cover has decreased are the states of Mizoram, Nagaland,
Arunachal Pradesh, Tripura and Meghalaya. These states are in the northeastern part of the country
where the total forest cover is already very high i.e. more than 70 percent in each state. The main
reasons for the decrease are - shifting cultivation, biotic pressures (insects and diseases), rotational
felling, diversion of forestlands for developmental activities, submergence of forest cover,
agriculture expansion and natural disasters.

The country is also largely dependent on lumber imports due to a Supreme Court ruling banning tree
cutting in many of its forests. Growing concerns and pressure from environmental organizations
possibly reduced the proposed investments in the timber sector. Nonetheless, the demand and
growth in the industry is most likely to remain unaffected by the ‘minor’ growth inhibitors. In
response to the growing demands, the whole sale price index of wood and wood products has also
increased by about 34 percent from the base year of 2012.

 What are the specific aspects of the product/service (including any copyright, patent, or
trademark information)?

Hardwood refers to deciduous, broad-leaved trees, such as red and white oak, black cherry, sugar
(“hard” or “rock”) and red (“soft”) maple, and tuliptree (“tulipwood” or “yellow-poplar”). Softwood
describes wood of conifer species, such as pine, fir, and spruce. Hardwood trees predominate in
northeastern forests.
Although hardwoods and softwoods are interchangeable in some markets, high-quality (defect-free)
hardwoods, particularly red and white oak, black cherry, and hard maple, are some of the most
valuable lumber in the world and tend to be used for furniture, cabinets, and flooring. Softwoods are
more typically used for construction lumber. Both types of wood are used in paper manufacture,
with hardwoods typically used in higher percentages for making fine papers. Market values and
demand for the various lumber species can fluctuate greatly with changing home fashion trends.

These factors present opportunities for Canadian wood species in furniture, doors, door
frames, interior finishing, as well as outdoor and structural applications. While market
development efforts take time to mature, there are positive signs that Canadian
softwoods could capture significant returns by replacing existing tropical hardwoods in
key applications.
 What competitive products are already available and filling this need?

(Onyi)

 What are the competitive companies in this product market space? Describe their
competitive behavior?
 What are the strengths and weaknesses of each of your competitors?
 What is the country code(s) for this product/service?

The Directorate of Plant Protection, Quarantine and Storage (DPPQS) under the Ministry of
Agriculture, Cooperation and Farmers Welfare (MOA) regulates the import of timber logs into India.
Species that are listed under VI and VII of the Plant Quarantine (PQ) order 2003 may be imported
into India as per the import requirements listed under these schedules and also the general import
requirements listed under Section 9 (Requirement of Import of Wood and Timber), Chapter II
(General conditions for import) of the PQ order. As per the current Plant Quarantine Order 2003
updated as of December 18, 2018, the import of wood and wood products requires fumigation /heat
treatment / Kiln Dried to be endorsed on the phytosanitary certificate issued in the country of
export.

According to the PQ order, the timber/wood with or without bark shall be fumigated prior to export
with methyl bromide (MBR) at 48 g/m3 for 24 hours at 21 degrees Celsius or above, or an equivalent

thereof, or any other treatment approved by the Plant Protection Adviser, Government of India. The
treatment shall be endorsed on the Phytosanitary Certificate issued at the country of export or re-
export.

Similar to logs, imports of lumber are also regulated by the DPPQS, Ministry of Agriculture,
Cooperation and Farmers Welfare. Shipment of timber or sawn or sized wood with or without bark
prior to export must be either fumigated with methyl bromide at 48 g/m3 for 24 hours at 21 degrees
Celsius or above, or an equivalent thereof, or kiln dried at 56°C for 30 minutes (core temperature of
wood) or heat treated at 56°C for 30 minutes (core temperature of wood). The treatment shall be
endorsed on the Phytosanitary Certificate issued at the country of export or re-export.

(Ani)

 What are the unique selling proposition of this product or service?

 What patents might be available to fulfill this need?
 What are total industry sales in this country code category for the past five years?
(Tamara)

 What is anticipated growth in this industry?

The country has been importing wood and wood products. The value of imports in the industry was
more than 329 billion Indian rupees at the end of fiscal year 2021. It is believed that by 2024, India
will be the world’s most populous country and it will require huge volumes of timber for fulfilling its
basic requirements in housing, construction and furniture production. India has a thriving range of
industries that deal with processed and semi-processed value-added timber products. Plywood,
veneer and wooden furniture, handicrafts, and pulp and paper are also popular segments within the
industry.

 What, if any, new products have been recently introduced in this industry?

B) An assessment of the market

 What market need does the product/service fill?
 What are the size and past trends over the last three years of this market?
 What are the future growth prospects and characteristics of this market?
 What does the international market look like?
 What is the profile of your typical customers?

C) Entrepreneurial and team assessment

 What does this opportunity excite you?
 What are your reason for going into this business?
 Will this opportunity sustain you once the initial excitement subsides?
 How does this opportunity fit into your background, experience, and skills?
 What experience will you need to successfully implement the business plan?
 What are the skills, experiences, and backgrounds of other members of your team?

D) The next steps

 What does the critical steps to go forward?
 What is the sequence of activities (steps) to launch the venture?
 What is the amount of time and the amount of money needed at each step?
 Where will the money needed come from?