Mroar - Vijayawada

MARKET
RESEARCH &
OPPORTUNITY
ANALYSIS REPORT
VIJAYAWADA
Prepared By,
Meticulous Business Plans, Pune
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2
Contents
CHAPTER NAME PAGE NO.
1 CONFIDENTIALITY AGREEMENT 7
2 VIJAYAWADA: AS A LOCATION OF BUSINESS 9
2.1 RESOURCES AVAILABLE 9
2.2 ENVIRONMENTAL ANALYSIS 10
2.3 EXISTING INFRASTRUCTURE 11
3 GEOGRAPHY AS A MARKET 17
3.1 GEOGRAPHICAL OVERVIEW 17
3.2 DEMOGRAPHICAL ANALYSIS 18
3.3 ECONOMICAL OVERVIEW 20
3.4 BUSINESS ENVIRONMENT 21
3.4.1 ETOP ANALYSIS 21
3.4.2 PESTLE ANALYSIS 22
3.5 MARKET DYNAMICS 24
3.5.1 GROWTH DRIVERS 24
3.5.2 OPPORTUNITIES 24
3.5.3 CHALLENGES 24
3.5.4 THREATS 24
3.6 DEMAND & SUPPLY MATRIX - MAJOR PRODUCTS 25
3.7 UNTAPPED MARKET OPPORTUNITIES 26
3
Contents
3.7.1 FOR EXISTING PRODUCTS 26
3.7.2 FOR NEW PRODUCTS 27
3.8 POTENTIAL BUSINESS IDEAS 28
4 GLOBAL - AS AN EXPORT MARKET 30
4.1 EXISTING PRODUCT AND OPPORTUNITIES 30
5 TOP 16 POTENTIAL BUSINESS IDEAS 32
5.1 BANANA POWDER MANUFACTURING 32
5.2 BIODEGRADABLE SANITARY NAPKINS MANUFACTURING 34
5.3 BIOLOGICAL DRUGS MANUFACTURING 36
5.4 ACTIVATED CARBON MANUFACTURING 38
5.5 PACKAGED SUGARCANE JUICE PROCESSING 40
5.6 PECTION EXTRACTION/PRODUCTION 42
5.7 COCONUT PROCESSING 44
5.8 LIQUID SOAP MANUFACTURING 46
INDIVIDUAL QUICK FREEZING (IQF) OF FRUITS AND

5.9 48
VEGETABLES
4
Contents
5.10 INTRAVENOUS FLUIDS (IV) MANUFACTURING 50
5.11 ESSENTIAL OIL EXTRACTION FROM SPICES 52
5.12 ONION SEED OIL MANUFACTURING 54
5.13 EMPTY GELATIN CAPSULE MANUFACTURING 56
5.14 TAMARIND PROCESSING 58
BIODEGRADABLE PHARMACEUTICAL PACKAGE

5.15 60
MANUFACTURING
5.16 ALTERNATIVE WATER BEVERAGE MANUFACTURING 62
6 MBP ANALYSIS 65
7 DESCLAIMER 67
5
CHAPTER ONE
Confidentiality
Agreement
6
CONFIDENTIALITY AGREEMENT
COPYRIGHT © 2020 METICULOUS BUSINESS PLANS.
The buyer and or reader and or user acknowledges that the information
provided in this report is highly confidential and is the sole property of
meticulous business plans. therefore, the buyer and or reader and or user
agrees not to disclose it in any means of distribution like electronic,
mechanical, recording & print; no part of it may be circulated, copied, quoted
or otherwise reproduced without the express written permission from MBP.
MROAR – Vijayawada Copyright © MBP 2020

CHAPTER TWO
Vijayawada–
as a Location of
Business
8
VIJAYAWADA –
AS A LOCATION OF BUSINESS
Vijayawada has been one of the dynamic Andhra Pradesh stands 2nd in production
cities of South India, and has preferably of Cashew, Mango, Sweet orange in India.
received recognition after the separation The contribution of horticultural sector is
of Andhra Pradesh state. nearly 16.07% to the state GVA.
The city has also been named as a Global
 Spices:
city of the future by Mc Kinsey.
Chillies, turmeric, ginger, mustard, garlic,
Primarily dependent on agriculture, the
tamarind, coriander.
city ahs now been developed in various
The state stands 1st in production Spices
industries including IT, Life sciences, food,
including chillies, other leading crops
petrochemicals, etc.
produced are cocoa, oil palm, tomato.
The city has well connectivity with almost
every top city in the country.  Vegetables:
Cucumber, Guards, Okra, Brinjal, Tomato,
2.1. RESOURCES AVAILABLE Cabbage, Cauliflower, Onion, Tapioca,
Andhra Pradesh is a major producer of Leafy vegetables.
Rice in India and stands in the second The state is also a good producer of
position after Punjab. Rice forms a staple Mushrooms owing to the export in
food of local people in the state. European countries.
 Major Crops:  Minerals:

Paddy, Bajra,, Sorghum (jowar), Maize, Asbestos, mica, manganese, barite, high
Ragi, Small millets, Pulses, etc. are the grade coal,, low grade iron ore, gold ore,
principle crops of the state. diamond, beach sand, bauxite, limestone,
Cash crops include sugarcane, oilseeds, clay, quartz, etc.
(cotton, groundnut, sunflower). The state Natural gas is found in the Krishna
is a leading producer of Tobacco. Godavari basin.
Krishna district is one of the prominent Various cement based products, iron ore,
coastal districts of the state, growing etc. are exported to other countries.
numerous crops round the year.
 Livestock:
 Fruits: Livestock raising is an important part in
Mango, Guava, Coconut, Cashew, Citrus, the state with principally including cattle,
Sapota, Pineapple, Lemon, Sweet oranges, water buffalo, sheep, goat, pig and poultry,
Papaya, Bananas. Etc. are major fruits etc. Dairy and egg production has
grown in the state. increased considerably.
According to the latest statistics from
 Forestry:
Reserve Bank of India, Andhra Pradesh
They include timber like teak and
has become a number one producer of
eucalyptus, non timber product include
fruits in India in the last few years
sal, gum karaga, bamboo.
surpassing Maharashtra, even though it
has less horticultural plantation area than
Maharashtra state. 9

VIJAYAWADA –
2.2. ENVIRONMENTAL ANALYSIS

Vijayawada experiences a tropical climate, the city where the average high
where the average temperature of the city temperature reaches a mark of 40˚C.
is about 28.5 ˚C. July receives maximum rainfall throughout
January is the driest as well as coldest the year reaching up to 250mm for the
month in Vijayawada with least rainfall. month.
May can be seen as the warmest month in Below are major seasons of the region:
March till Mid June: average temperature between

25-37˚C.
June till mid October: average annual rainfall of

1,067 mm.
November till February: average temperature

between 18-22˚C.
Below shown are the months receiving As well as the months that features the
highest temperatures throughout the year. highest rainfall during the year.
HIGHEST TEMPERATURE (˚C)

Highest Temperature
42 40
40 37.9 37.6
38 35.7
(˚C)
36
34
32
March April May June
Months
HIGHEST RAINFALL (in mm)

300 250
Rainfall (in mm)
250
197
200 164 169
136
150
100
50
0
June July August September October
Months
10

VIJAYAWADA –
2.3. ENVIRONMENTAL ANALYSIS 2.3. EXISTING INFRASTRUCTURE

• The state as well as the cities within it 2.3.1. Air Connectivity:
are facing environmental problems • The Vijayawada Airport (IATA: VGA,
since last few years. ICAO: VOBZ) located at Gannavaram
• The vision of developing the outskirts near Vijayawada which initially served
of Vijayawada in the Krishna river basin domestic flight for people in the region.
(Amaravati) as a new capital of the • Later bifurcation of the Andhra Pradesh
state until 2019 led to an adverse state led to increase in passenger traffic
environmental, social, economic and in the Vijayawada airport. This
financial implications in the region. increased the connectivity of flights
• The greenfield project has faced much with major metro cities of India.
protests from environmentalists, • The airport also received international
farmer groups, retired government recognition, when flights to Singapore
officials and several other groups as it were started from Vijayawada to boost
was harming the biodiversity. This the international connectivity of the
resulted in the halt of the project after region.
the state elections at the end of year • The airport plays a major role as the
2019. city experiences good amount of tourist
• The problem of air pollution has been as well as business travelers round the
prevailing in Vijayawada. According to year.
World Health Organization (WHO), the • Air India, Air India Express, Jet Airways,
PM₁₀ pollution level in the city is higher Indigo Airlines, Spice Jet, Alliance Air
(95) as well as the PM₂.₅ level is (42). are airlines that operates the ply flights
The quality of air is lower, also the from Vijayawada to major cities like
problems regarding garbage disposal Delhi, Bangalore, Hyderabad, and
persist. Jaipur, Mumbai, Chennai, etc.
• The considerable rise in the plastic • An alternative airport to Vijayawada
pollution has led to ban of single use (VGA) is Rajahmundry (RJA) which is
plastic by the state government in the 126 km from the city.
city during 2019. this has increased the
2.3.2. Rail Connectivity:
demand for cheaper plastic alternatives
• Vijayawada Railway Station (BZA) is
in the market.
one of the major station in the south-
• The problem of water pollution also
central railways network and an
exist.
important second largest junction in
• The recent pandemic of COVID19 has
India.
completely changed the scenario of the
• It has ten platforms and five entrances
state as well as entire country. The
which indicates it is one of the five
pandemic has resulted in delay in
busiest railway stations in the India.
economic activities on one hand and
• Vijayawada has eight other railway
recovery of environment on the other
stations Gannavaram, Gunadala,
hand. 11

VIJAYAWADA –
• Krishna Canal, Ramavarappadu, 2.3.4. Industrial Scenario:

Kondapalli, Rayanapadu, Madhura • Industrial development in Krishna
Nagar, Nidamanuru catering to the huge district is attributed to the presence of a
rail traffic. large number of industries. The
• It has an excellent network of business capital of state Vijayawada is
connectivity to every city in south and rapidly growing with agro-based
also all major cities with the rest of industries, manufacturing sector as well
India. as retail sector which contributes GDP
• India’s longest electrified rail tunnel for total production in monetary terms
between cheropalli and Rapuru has is about 18,000 Cr in 2010 which is
been also started to facilitate freight expected to grow up to 1,02,000 Cr by
trains on Obulavaripalli-Venkatachalam the 2025.
- Krishnapatnam Port route as well as • The industrial scenario of the city is
ease the congestion of passenger trains dominated by the agro based industries
in Vijayawada - Gudur – Renigunta - which includes units like oil mills, rice
Guntakal section. This has made mills, dal mills and solvent extraction
travelling convenient for the state plants.
capital. • Apart from agro based industries, other
major industries in Vijayawada are
2.3.3. Road Connectivity:
Auto mobile industry, Textile industry
• Vijayawada is well connected with the
and industrial producing consumers
other parts of the state and country by
goods.
National and State highways. NH16 and
• The Industrial Estate at Kondapalli is
NH65 play a major role. The inner ring
only 16 Kilometers from the center of
road connects NH16 &65 to ease
the city which covers an area of 439
congestion in the city.
Acres with 620 industrial plots.
• The city is a major connecting link
• The Auto Nagar Industrial Estate lying
between two industrial zones viz.
in the eastern area of the city that
Hyderabad and Visakhapatnam.
covers an area of 340 acers which
• The six-laning of Vijayawada bypass
provides shelter to many small and
from Gollapudi to Chinnakakani
medium industry.
including a major bridge across Krishna
• The Jawahar Autonagar, Patamata, the
river has been approved to ease traffic
only one of its kind in India in the entire
congestion between Visakhapatnam
country and the R.T.C. (Road Transport
and Hyderabad that will bypass
Corporation) and its main regional
Vijayawada.
workshop at Vidyadharapuram, for
• The major mode of transport within the
repairing old buses are the important
city include auto rickshaws, she-autos,
industries in the district.
private taxis, city buses, APSRTC to
connects major cities, etc.
12

VIJAYAWADA –
Government of AP has identified Textiles, APITCO

Drugs and Pharmaceuticals, Engineering h. Graphite crucibles cluster,
goods, Processed foods, Mineral and metal Rajahmundry, - for state Government –
products, fertilizers, paper products (and by APITCO
printing) and bio-technology as the main
There are 360 Industrial Development
growth engines.
Areas and Industrial Estates, 16
Andhra Pradesh has two types of
Autonagars, and 20 commercial complexes
industrial plans:
built by the APIIC in the State. Apart from
1. MSME i.e. micro, small, medium
these, there are special industrial parks for
enterprises (cluster of enterprises)
specific industries.
includes for instance: Fruit cunning,
cashew processing, turmeric Industrial parks at Vijayawada and
processing, agro-dairy processing, Andhra Pradesh:
handmade object processing biscuit 1. Export Promotion Industrial Park,
and bakery production, oilseed Pashamylaram, Medak District, AP.
processing, automobile parts, plastic 2. Apparel Export Park,
processing, jewelry processing etc. Gundlapochampally, RR Dist.
2. Large and medium scale industries. 3. H I T E C city( Hyderabad Information
Technology And Engineering
MSME has been governed by following
Consultancy )
agencies:
4. Hardware Park, Hyderabad (now
a. Auto components of Vijayawada –
Telanagana)
State Government under Small
5. Integrated International Convention
Industry cluster development
Centre; Golf Course with Villas and
programme, with grants from DC (SSI),
Hotels, Hyderabad.
GOI
6. Mega Industrial Park at Parwada
b. Imitation jewellery cluster of
(Visakhapatnam).
Machilipatnam, Krishna DT – for State
7. Food Processing Industrial Park At
Government, by APITCO
Kuppam, Chittoor District
c. Mango jelly cluster of Bhimli,
8. Visakhapatnam Export Processing
Vizianagaram – for state Government,
Zone.
By APITCO
9. Visakhapatnam Exim Park.
d. Mango jelly cluster at Kakinada, EG DT
10. Gems and Jewellery Park, Hyderabad.
– for state Government, by APITCO
(Telanagana state)
e. Burnt lime cluster at Piduguralla,
11. Agri Export Zones.
Guntur district – for state Government,
12. SP Biotech Park.
by APIRCO
13. Marine Bio-tech Park
f. Turmeric processing cluster,
14. Agri Bio tech Park
Duggirala, Guntur district – for state
Government, by APITCO
g. Food processing cluster at Vijayawada, 13

VIJAYAWADA –
2.3.5. Health And Medical: • The government general hospital,

• Vijayawada has comprehensive medical Government dental college and
facilities which provides well advance hospital, Charithasri Hospital are few
equipped with all modern updated best known government hospitals in
treatment Vijayawada.
• The health care system in the city, • Some of private multi specialized
consist of quality hospital, specialty hospitals that provides advance
care centers and private and charity services in Vijayawada are Nagarjuna
hospitals, nursing homes, Ayurvedic Hospital, Aayush Hospital, Manipal
health care that provides the health Hospital, Chaitanya Eye Hospital,
care facility. Giridhar ENT Hospital.
• The health scenario in Vijayawada is • Vijayawada also has a fleet of ayurvedic
standardized and easily affordable than care center in the city to provide
many other cities in India. ancient form of medicine to the people.
2.3.6. Banking Sector:

Various banks in Vijayawada include:
2.3.7. Government Initiation: Development and Refinance Agency

• Prime Minister’s Employment (MUDRA) is to provide funding to the
Generation Program (PMEGP) is aimed non-corporate small business sector.
at generating self-employment • SADAREM initiative is to create a
opportunities through establishments Dynamic Web enable system for
of micro-enterprises in the non-farm comprehensive access, rehabilitation
sector by helping traditional artisans and empowerment, through
and unemployed youth. automation, capacity building, and
• The purpose pf Micro Units assessment of persons with disabilities.
14

VIJAYAWADA –
• The Government had initiated e- Health • At the outskirts of Vijayawada and the
in Vijayawada which had two schemes nearby cities including Amaravati,
for peoples as eVaidya – Telemedicine Visakhapatnam, Kakinada, Tirupati has
Project Pilot in Urban Health Centres been in the race of smart cities from
(PPP) and Rashtriya Bal Swasthya Andhra Pradesh.
Karyakram (RBSK). • With the change in the government,
• The Tata trust collaborated with several ongoing projects were reviewed
government of AP and initiated the by the government and most of the
villages community empowerment, works have been halted, with the view
feeding and distribution programs as of giving priority to only major sectors.
Integrated Child Development Services • The present government is also
(ICDS) and Public distribution system working towards establishment of skill
(PDS) as delivery channels. development centers across the states
• Andhra Pradesh is the first state in for encouraging the entrepreneurs.
India to have enacted the Industrial • Various government policies include:
Single Window Clearance. 1. Industrial development policy (2015-
• The state also separates acts for 2020): to establish state-of-the-art
development in sectors like electronic infrastructure, promote
hardware, food processing and solar manufacturing, enhance inclusivity,
power. foster innovation and create
• As of February 2020, Andhra Pradesh employment opportunities across
has 20 operational Special Economic sectors.
Zones (SEZ) with in-principle approval 2. Andhra Pradesh internet of things
and 27 notified SEZs. (IOT) policy 2016-2020.
• These were spread across sectors 3. Andhra Pradesh single desk clearance
including food processing, IT, Multi- (2015-2020): GoAP shall create an e-
product, Footwear and leather, Textile platform, for facilitating all necessary
and apparel SEZs, etc. clearances for starting and operating
• The union government had also made an industry within 21 working days.
plans for developing metro rail projects 4. Electric mobility policy (2018-2023).
at three locations including Vijayawada,
Note: the above policies were enacted by
Guntur and Visakhapatnam. These previous government. The working of above
projects had also received approval policies may be affected with the change in the
later. government in the city.
15

CHAPTER THREE
Geography-
as a Market
16
GEOGRAPHY-
AS A MARKET
3.1. GEOGRAPHICAL OVERVIEW
• Vijayawada geography mainly pertains panchayats with the city to gain

to the basic geographical information momentum during 2019.
about the city of India. • The city is marked by presence of rich
• Vijayawada which is located in the and fertile agricultural lands. There are
Krishna district, is the second largest a number of rivers, canal, etc. in the
city in Andhra Pradesh and was region.
declared as the capital of the state after • The Krishna river is the most important
separation of Andhra and Telangana. river and flows through the city. The
• The city has been an important trading Badameru river lies towards northern
and business centre of the state since edge and Indrakiladri hills cover the
long time. city towards western side.
• The famous historical and religious • The major canals in the city include
locations in and around Vijayawada Bandar, Eluru, Ryves, and Buckingham
attract a large number of tourists canal.
throughout the year. • Vijayawada receive a considerable
• Vijayawada is situated on the amount of rainfall throughout the year.
coordinates of 16.51°N and 80.63°E. The city also falls under seismic III
The maximum elevation is about 36 feet zone, prone to earthquakes.
above the sea level. • Cyclones, floods are also common in the
• The total area of Vijayawada is around region.
61.88 sq. km. The Municipal • The cyclones in the regions has resulted
Corporation (VMC) had proposed the in the naming of the place as
merger of 45 surrounding gram “Blazewada”.
17

GEOGRAPHY-
AS A MARKET
3.2. DEMOGRAPHICAL ANALYSIS VIJAYAWADA POPULATION 2011

• Talking about the population of 1,600,000
1,494,000
Vijayawada, the city has seen a 1,400,000

1,034,358
Population
1,200,000
tremendous growth in the population 1,000,000
800,000
since 2011. 600,000
400,000
• Vijayawada is the largest city in the 200,000
0
Krishna district. Total Metropolitian Total city population
• It comes under metropolitan area and is population 2011 2011
governed by the Municipal Corporation. Vijayawada Region
• Vijayawada is the second most the population of nearly 1,476,931

populous city in the state of Andhra during 2011.
Pradesh after Visakhapatnam (Vizag). • The population will be revised further
• The importance of both the cities grew in 2021.
prominently after Telangana was • The density of population in
carved out of Andhra Pradesh. Vijayawada is 16,393 people per square
• Visakhapatnam is the largest city in the kilometre.
state, and provides better opportunities • As of 2011 census, there are 987
when compared against Vijayawada. females per 1000 male in the
• Vijayawada has been in the race of metropolitan region, which is higher
becoming the capital of the state. But, than the national average.
strongly faced competition from Vizag • 84.55% of male and 76.57% of female
considering the quality of living as well population are literate here.
as economic structure. • The city population increased to around
• The population of the city under 2.04 million in 2020 from 1.49 million
municipal corporation was 1,034,358 in 2011. Following graph represents the
and the total urban agglomeration had growth in the city population.
VIJAYAWADA METROPOLITAN POPULATION

2.10 2.04
Population (in million)
2.00 1.97
1.91
1.90 1.84
1.78
1.80
1.70
1.60
2016 2017 2018 2019 2020
Year
18

GEOGRAPHY-
AS A MARKET
VIJAYAWADA DEMOGRAPHIC DETAILS (2011)

Female pop.in
77.46%
49,054
2011
361,537
515,768
Male Pop.in 2011
85.02%
52,645
396,130
518,590
0 100,000 200,000 300,000 400,000 500,000 600,000
Average literacy (%) Children (0-6) Literates Total population
• Above graphs shows the total male and migrants from different parts of the
male population of Vijayawada, no. of state throughout the year.
literates, no. of children as per 2011 • Also, number of languages spoken in
census. Vijayawada include Telugu, Hindi,
• The workforce in Vijayawada has been Tamil, English, Marathi, Malayalam, etc.
thriving on the agro-based industry, • The most dominant religion in
manufacturing as well as retail sector. Vijayawada being Hinduism forming
• The city host Asia’s largest Automobile 85.16% of the population followed by
service hub, which attracts a lot of Islam.
RELIGIONS IN VIJAYAWADA
Hindu 85.16% Muslims 9.12% Christian 3.64% Not Stated 1.43%

Jain 0.5% Sikh 0.08% Others 0.05% Buddhist 0.03%
19

GEOGRAPHY-
AS A MARKET
3.3. ECONOMICAL OVERVIEW 1. Agro and food processing

• Andhra Pradesh is state which is 2. Aerospace and defense
located south middle east of India. The 3. Auto mobile and auto components
state is bounded with Chhattisgarh, 4. Electronics and IT
Odisha, Telangana and Bay of Bengal is 5. Life sciences
in the east. 6. Mineral based industries
• AP’S Gross State Domestic Product 7. Petroleum. Chemicals and
(GSDP) was estimated at US$154.62 petrochemicals
billion in 2018-19. 8. Textile and apparels
• The state has well–developed social, 9. Retails
physical and industrial infrastructure 10. Tourism
and virtual connectivity. It also has 11. Energy
good power, airport, IT, port 12. Micro small and medium scale
infrastructure. industries
• As per the data released by Department • The state ranks 5th in the country in
for Promotion of Industry and Internal exports and consumption.
Trade (DPIIT), the state has attracted • The processed food exports during
Foreign Direct Investment (FDI) equity 2013-14 were worth US$37.7 billion.
inflows worth US$ 18.98 billion during • The state forms 12% of India’s total
the period April 2000 to September export in processed foods.
2019, • The state is set with the investment in
• After the separation, Hyderabad was mega food park.
claimed to be the capital of AP for 10 • The state is the leading one in fisheries
years. But the state government started sector.
the development od Amaravati for • The state will be now focusing on non-
making it the new capital of Andhra tax revenues and possibly develop agro-
Pradesh. based industries, tapping the strengths
• Now a new proposal of 3 capitals has of the state’s resources. Including its
been sent by the present government long coastline.
including Amaravati as the legislative • The state is also among top 12
capital with the state assembly, Kurnool destinations in the world in life
in Rayalaseema as the judicial capital sciences.
with the high court, and Visakhapatnam • Also is among top 3 states in
in Uttar Andhra as the administrative pharmaceutical exports. Has more than
capital. 190 pharmaceutical units in the state.
• The economy of Andhra Pradesh has
been primarily dependent on
Agriculture.
• Different sectors of Andhra Pradesh
include:
20

GEOGRAPHY-
AS A MARKET
3.4. BUSINESS ENVIRONMENT
3.4.1. ETOP Analysis:
Environmental Nature Of
Description
Sector Impact
The rise in population and consumer health consciousness has

Social
a positive impact on food processing and healthcare sector.
There has been a political instability in the region and state

after the 2019 elections, where the new government has
stopped many of the on-going development projects in the
entire state. This has led an impact on withdrawal of
Political investments by many investors in the state especially along
the Krishna basin. This may have some adverse effects.
Though, the central government is positive towards
promoting the healthcare and food processing sector in India
by providing various schemes and incentives.
The scenario of consumer purchasing pattern will be changing

Market in the post pandemic period. Though the healthcare and food
has a never ending demand through out the country.
The coronavirus pandemic in India will have a severe impact

Economical on Indian economy. India’s economic growth is forecast to
slow to 1.2 per cent in 2020.
Good availability of raw material as well as provision for

Supply Chain
finished product. Yet, not so good infrastructure facilities for
Management
Agri produce.
The advancement in technology and upgradation taking is

Technological &
place in Vijayawada as well as the state. Establishment of SEZ
Industrial
is helping to boost the food sector.
Compliance with all permits and licenses will help business

Legal
grow.
21

GEOGRAPHY-
AS A MARKET
3.4. BUSINESS ENVIRONMENT

3.4.2. PESTLE Analysis: and lower commute time.
• The city has a good manpower
Political Factors: while starting any
availability, natural resources,
business, the company policies and its
geographical proximity to neighbouring
budget can get affected by political
regions and major Indian cities.
influences.
• Vijayawada-Amaravati had been
• Specifically, government policies and
proposed as legislative capital of
regulations regarding the export of food
Andhra Pradesh in 2019. this would
products, tax, and labour laws,
further boost the economic activities in
environmental law, trade restrictions
the region.
and political stability have great impact
• As such India has been making good
on any business.
progress economically where the GDP
• External environment including the
growth stood by ~7% during 2019. But,
central government is positive towards
now the condition has changed since
promoting and development of SME’s
last two months prevailing the
though establishing SEZ, food parks,
lockdown.
cold storage units, etc. for betterment of
• The latest UN Report states that the
food processing.
economic growth of India will slow
• The state government is also aimed at
down during FY2020.
creating employment by supporting the
• The GOI certainly has plans to increase
entrepreneurs in the region.
the productivity of the country
• On the other hand, internal
specifically in the Agro-based, MSME
environment, which includes unionized
sector by providing financial assistance
work force within the organization has
and raise the economic status of the
a direct affect on the performance of the
country.
business.
Social Factors: these factors include the
Economical Factors: these factors include
religion, education, values, language,
economic growth, interest rate, exchange
culture of people.
rates & inflation rate of the country. These
• As the number of people in the city
factors have more impact on how the
increases so does the need for the
business runs or operates.
residents to create new ideas and adapt
• The economy in Vijayawada is mostly
to new skills to generate an income.
driven by agriculture and its allied
• With the rising consumers, the demand
activities, manufacturing, automobile,
for new products (protein rich, low
tourism, handicrafts, and food
calorie, RTE, RTC, Convenience foods)
processing industries.
and services is increasing creating a
• Vijayawada is the most preferred city of
potential opportunity for new
Andhra Pradesh by entrepreneurs. The
businesses to enter into the market.
reason being the less expensive living
22

GEOGRAPHY-
AS A MARKET
• Increasing internet penetration has led regulations of FSSAI and get licensed in
to rise in number of online services, case of manufacturing and handling of
saving the time as well as bringing food products.
convenience in buying of items for the • The most critical aspect of processing
customers. fruits and vegetables will be its
• Along with these the supermarket, perishability and hence there is a need
hyperlocal market penetration has for meeting Indian standard
already taken place among the regulations. In case of export of FMCG
consumers, introducing them with new products, FDA standards and laws
products and raising their awareness governing those countries must be
regarding health and food options. complied.
• Also compliance with WHO, D&C Act,
Technological Factors: Efficient use of etc. is necessary in case of drugs,
technology will always have a positive cosmetic, etc. manufacturing/
impact on the production and sales of the distribution.
business. Advanced technology and new
machineries and equipment is reducing Environmental Factors: the state as well
the production time as well as maintaining as the city of Vijayawada has a tropical
the quality and life of the product. climate with three distinct seasons:
• South India has always been a hub for winter, summer and rainy.
IT services specifically in the cities like • Vijayawada has air pollution problems,
Bangalore, Hyderabad, Chennai. with rapidly increased suspended
• More than half of the Vijayawada particulates matter higher than the
economy is dependent on the service WHO standards.
sector. The market is much aware • Natural calamities like cyclones, floods,
regarding technological advancements earthquakes also adversely affect
taking place. production of crops in the state.
• Regarding the food sector, the food • The no so good infrastructural
related laws are made strict by the conditions lead to considerable loss of
central government as well as FDA in commodities in the region.
case of export market. This is driving
the manufacturers to opt for
modernized production equipment,
that ensures maintenance of quality,
safety as well of hygiene of food
products.
Legal Factors: It is mandatory to follow

the laws and legal framework of the
country.
• The company should comply with the 23

GEOGRAPHY-
AS A MARKET
3.5. MARKET DYNAMICS beverages, agro processing,

• Presence of major port at
3.5.1. Growth Drivers:
Visakhapatnam and several medium-
• Development in the Infrastructure of
sized ports around the city will boost
the city of Vijayawada is increasing the
the export opportunities for innovative
attraction of investors.
products.
• Developing as Educational Hub: City is
developing as an educational hub.. 3.5.3. Challenges:
• The city have relatively low cost of • The increasing population is raising
living as compared to Hyderabad, traffic issues in the city. Not only
Visakhapatnam in the state. Vijayawada but the entire country is
• Development of skill development facing traffic problems y-o-y and
infrastructure. managing it is a major challenge.
• Rates of land are cheaper in the city as • Vijayawada has a mission of becoming a
compared to the Capital of Andhra Solar city, but implementing the solar
Pradesh. process has been quite challenging due
• Being a famous tourist destination, the to budget allocation.
city contributes majorly towards the • The uncertain COVID19 crises in India
economy through tourism. has affected up to 53% of businesses
• Presence of Asia's largest automobile significantly in the country.
hub is among the growth drivers of the • The unemployment rate has reached to
city. nearly 45% until April 2020.
• FMCG companies are focusing on
3.5.2. Opportunities:
essential items only.
• The newly formed state government
• Young start-ups have been impacted as
has taken initiatives regarding
the funding has fallen.
Establishment of state-of-the-art
• The state is facing quite a cash crunch.
training and skill-development centres
• Major development projects started by
across the state for encouraging new
previous government in the region have
start-ups.
been revised by the current
• New schemes and policies
government and unnecessary project
establishment by the government will
works has been put on hold/halt.
be a positive factor towards MSME’s
sector.
• The COVID19 crises present a lot of
challenges as well as opportunities to
increase self-reliance. For example the
scope for manufacturing businesses like
soap, sanitizers, pharmaceutical
equipment's, ayurvedic medicines,
processed and healthy foods &
24

GEOGRAPHY-
AS A MARKET
3.6. DEMAND & SUPPLY MATRIX - Skill interventions required:

Skilled human resources: The city has been lacking in skills in
There has been a shortage of skilled various business sectors compared to
human resource, while there is surplus of Andhra Pradesh.
semi-skilled level workers. The sectors where skill intervention is
The city is expected to drive the demand required in Krishna district are given as:
for organized retail, agro and food • Agriculture
processing, biotechnology, clean tech • Education and skill development
sectors. • Food processing
The migration of various labors during the • Health care
pandemic will also have adverse effect on • Clean tech
• Organized retail
the businesses. As it has created shortage • Media and Entertainment
of laborers in the state. • Transportation & Logistics
25

GEOGRAPHY-
AS A MARKET
3.7. UNTAPPED MARKET OPPORTUNITIES
3.7.1. EXISTING PRODUCTS AND SERVICES:
SR. NO. PRODUCTS AND SERVICES
1 Fisheries
2 Textile
3 Construction works
4 Poultry and livestock rearing
5 Processed food products
6 Chemical & Plastic products
7 Hardware and software
8 Jewelry & Handicrafts
9 Pharma products
10 Alcoholic & non alcoholic beverages
11 Educational services
12 Beauty parlors and Spa
13 Fast food, Sweets, etc.
14 Health Clubs, Fitness centers, Gym
15 Automotive and Auto components
16 E-grocery
17 Movers and Packers
18 Courier services
19 Tours and travels
20 Financial services
21 Hospitality
22 Floriculture
23 Mining and ONGC
26

GEOGRAPHY-
AS A MARKET
3.7. UNTAPPED MARKET OPPORTUNITIES
3.7.2. EXISTING PRODUCTS AND SERVICES:
SR. NO. PRODUCTS AND SERVICES
1 Processed Fruit products
2 By - product processing
3 Innovative spice products
4 Bio-technology
5 Biodegradable products
6 Processed Egg products
7 Solar equipment
8 Plant based products
9 Biological drugs and pharmaceuticals
10 Alternative water beverages
11 Medical tool kit
12 E-waste management
13 Vertical farming
14 Event Management Company
15 Agro tourism
16 Home healthcare service
17 College networking platform
18 Electric vehicles
19 Daily needs delivery service platform
20 Cloud restaurants
27

GEOGRAPHY-
AS A MARKET
3.8. POTENTIAL BUSINESS IDEAS
Sr. No. Potential Business Ideas in Vijayawada
1 Banana powder manufacturing
2 Biodegradable sanitary napkins manufacturing
3 Biological drug manufacturing
4 Activated carbon manufacturing
5 Packaged Sugarcane juice processing
6 Pectin extraction/production
7 Coconut Processing
8 Liquid soap manufacturing
9 IQF (Individual Quick Freezing of fruits & vegetables
10 Intravenous Fluids (IV) manufacturing
11 Essential oil extraction from spices
12 Onion seed oil processing
13 Empty gelatin capsule manufacturing
14 Tamarind processing
15 Biodegradable pharmaceutical package manufacturing
16 Alternative water beverage manufacturing
28

CHAPTER FOUR
Global –
as an Export Market
29
GLOBAL –
AS AN EXPORT MARKET
4.1. EXISTING PRODUCT AND

OPPORTUNITIES
The state is making developments in The advantages include presence of port

export market, yet has not much share in in Visakhapatnam, agro climatic zones in
exports of processed food products, which the state, vast availability of resources,
presents an opportunity for the upcoming easy access to destinations like Singapore,
entrepreneurs to enter in the market of UK, etc. To cater the market.
fruit and vegetable processing as well as Following commodities find export
trading. opportunities in the state.
Commodity Commodity
All kinds of leafy vegetables Pineapples
Processed spice products Processed Jackfruit products
Frozen vegetables Papayas and processed products
Egg products Mango and allied products
Lemon varieties Biodegradable products
Banana and allied products Processed fishes
Ayurvedic medicines Plant based beverages
30

CHAPTER FIVE
Top 16 Potential
Business Ideas
31
TOP 16
POTENTIAL BUSINESS IDEAS
5.1. BANANA POWDER MANUFACTURING
IDEA CONCEPT SWOT ANALYSIS

STRENGTHS:
• Banana powder is obtained from green
• High profitability and revenue.
bananas after peeling, chopping, drying • Government support for food
and grinding them. processing unit.
• The product has a number of health • Availability of raw material.
benefits as well as finds applications in
WEAKNESSES:
food industry like bakery, confectionery,
• New in Market.
etc. as well as medicinal applications.
• Challenges of preservation.
• Most of the market is un-organized in
this segment, the product has a good OPPORTUNITIES:
• High applicability in food, pharma,
scope in the export market considering
cosmetic industry.
its nutritional benefits.
THREATS:
• Uninterrupted logistics & supply of
raw material.
PORTER’S ANALYSIS BCG MATRIX
Market share
Threat of new entrants: (MEDIUM) High Low
High
Bargaining power of buyer: (LOW)

Market growth
Banana
Bargaining power of supplier: (MEDIUM) powder MU
Threat of substitutes: (LOW)

Low
Threat of industry competitors: (MEDIUM)
GE 9 CELL MATRIX
INDUSTRY ATTRACTIVENESS
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
32

TOP 16
5.1. BANANA POWDER MANUFACTURING
PRE-REQUISITES INFRASTRUCTURAL REQUIREMENTS

Connectivity
Business Team • Land

Plan • Office
• Skilled manpower
• Plant setup
Company List of
Registration • Utilities
vendors
• Road access
• Connectivity
CAPITAL REQUIREMENT MARKET
• Fixed Capital: INR 50 Lakhs.
• Working Capital: INR 70-80 Lakh (per annum)
• Capacity: 3 tones/ day India is the leading producer in

Banana production accounting
• ROI (Return On Investment): 43%
for 29% of its share in global
• BEP (Break Even Point): in 2nd year market, whereas, only 0.3% is
exported showing a great
potential for processing of
banana as well as improving the
shelf life of the product..
33

TOP 16
5.2. BIODEGRADABLE SANITARY NAPKINS MANUFACTURING
• Biodegradable sanitary napkins are

manufactured using materials such as STRENGTHS:
• Environment friendly
banana fiber, bamboo corn, cotton, cloth
• Cost-effectiveness.
piece, etc. that do not contain any
synthetic or chemical-based materials. WEAKNESSES:
• The demand for Biodegradable Sanitary • Lower awareness.
Napkins in the market is rising due to OPPORTUNITIES:
the increasing population of working • Government support.
women, growing awareness about • Untapped market.
female hygiene, increasing health issues
such as skin irritation and rashes, THREATS:
government schemes and policies, etc. • Higher competition from synthetic
producers.
• It presents a good opportunity for new
entrepreneurs.
Market share
High
Bargaining power of buyer: (MEDIUM)

Market growth
Biodeg. Sanitary
Bargaining power of supplier: (LOW) napkins
Threat of substitutes: (MEDIUM)

Low
Threat of industry competitors: (HIGH)
GE 9 CELL MATRIX
100 50 0
100
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
34

TOP 16
5.2. BIODEGRADABLE SANITARY NAPKINS MANUFACTURING

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Working Capital: INR 90-95 Lakhs (per annum)

Trending Biodegradable
• Capacity: 1 ton RM / day Sanitary Napkins in the market
are the one’s made of cloth and
the other made of biodegradable
• BEP (Break Even Point): in 1st year materials such as bio-plastic or
alternatives mentioned earlier.
The Indian sanitary napkins
market is growing at a CAGR of
more than 6%, and expected to
cross $600 Million by the year
2023.
35

TOP 16
5.3. BIOLOGICAL DRUGS MANUFACTURING
• Biologics are created by using either STRENGTHS:

a micro-organism or a mammalian • High value
cell and are large complex molecules. • Revenue generating
• Majority of them are proteins (for WEAKNESSES:

example blood and blood products, • Sensitive and complex process
cell therapies, vaccines, tissues, • Patent cliff
allergens, etc.
OPPORTUNITIES:
• These drugs are used for treatment of • Domestic and overseas potential
numerous disease and conditions like
anemia, cancer, and other THREATS:
autoimmune diseases. • Clinical, technical and market
performance
Market share
High
Bargaining power of buyer: (LOW) Biological

drugs MU
Market growth
Bargaining power of supplier: (MEDIUM)

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
36

TOP 16
5.3. BIOLOGICAL DRUGS MANUFACTURING

Connectivity
Business Team
Plan • Land
• Office
Company List of
Registration
• Plant & lab setup
vendors
• Utilities
• Road access
• Connectivity
• Fixed Capital: INR 1-1.5 Cr.
• Working Capital: INR 1-1.3 Cr (per annum)
• Capacity: - The global market for biological

drugs was estimated to be $255
• ROI (Return On Investment): 35% million during 2019 and is
projected to grow at a CAGR of
• BEP (Break Even Point): in 2nd year
7.5% in the future.
Continuous possible innovations,
R&D, government policies, etc.
are few of the factors driving the
market.
37

TOP 16
5.4. ACTIVATED CARBON MANUFACTURING

STRENGTHS:
• Activated Carbon, AKA activated • Availability of raw material.
charcoal or activated coal is a form of
non-hazardous, tiny molecular, and low- WEAKNESSES:
volume pores having carbon. • Uninterrupted supply of raw
materials
• Rice husk, Coconut husk, Groundnut
husk, bagasse, bamboo, Nutshells, Wood, OPPORTUNITIES:
etc. can be utilized for activated carbon • High applicability in food, pharma,
production. cosmetic industry.
• Higher demand in purification,
• Activated carbon has a variety of
deodorization, discoloration of
applications including production industrial products.
medicinal products, cosmetics,
decaffeination, gas purification, water THREATS:
purification, filters in compressed air • Environmental threats
and industrial pollution control. • Existing competitors.
Market share
High

Activated
Market growth
carbon MU
Bargaining power of supplier: (LOW)

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
38

TOP 16
5.4. ACTIVATED CARBON MANUFACTURING

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Fixed Capital: INR 50-60 Lakhs.
• Working Capital: INR 55-60 Lakh (per annum)
• Capacity: 2 tones/ day The demand for activated carbon

has increased from the last few
• ROI (Return On Investment): 39% years and it is expected to rise
steadily considering the growth of
• BEP (Break Even Point): in 2nd year
pharmaceutical, food, chemical,
and Agri-based industries.
The market size is expected to
cross more than $7 billion by 2022,
it is the best opportunistic
business.
39

TOP 16
5.5. PACKAGED SUGARCANE JUICE PROCESSING

STRENGTHS:
• Sugarcane juice has been accepted
• Innovative concept.
worldwide having high nutritional value, • Availability of raw material.
rich in antioxidants, iron, magnesium,
calcium, and other electrolytes that WEAKNESSES:
boost energy level and it is a great • Lack of awareness.
rehydrating drink. • Inadequate Technical Expertise.
• A big concern regarding the sugarcane OPPORTUNITIES:
juice is its shelf life, which can be • Increasing demand for packaged
improved by aseptic processing and version of this juice in the market
packaging of the product. The demand world wide.
for sugarcane juice and advancement in
juice manufacturing business have THREATS:
shown us that there is a good • Highly unorganized road side
vendors, stalls, etc.
opportunity for entering this business.
Market share
Threat of new entrants: (LOW) High Low
High

Packaged
Market growth
Bargaining power of supplier: (LOW) Sugarcane Juice

MU
Threat of substitutes: (HIGH)

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
40

TOP 16
5.5. PACKAGED SUGARCANE JUICE PROCESSING

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Fixed Capital: INR 0.8-1.0 Cr.
• Working Capital: INR 60 Lakh (per annum)

Hygienically produced and
• Capacity: 6k liter / day
packaged sugarcane juice could
• ROI (Return On Investment): 28% find use as other soft drinks and
has good potential market as the
• BEP (Break Even Point): in 2nd year juice is nutritious. Global
production of Sugarcane is
estimated to be 2.8 million tones
and the consumption expected to
be more than double the 5.8% in
2021.
41

TOP 16
5.6. PECTIN EXTRACTION/PRODUCTION

STRENGTHS:
• Pectin is a highly valued food ingredient.
• Availability of raw material.
It is commonly used as a stabilizer and a
gelling agent in food industry. WEAKNESSES:
• Inadequate Technical Expertise.
• It is primarily present in cell wall of
• Perishability
plants. It can be extracted by enzymatic
or chemical methods from fruits. OPPORTUNITIES:
• Various steps involved in pectin • Food and pharma applicability
extraction includes washing, drying of THREATS:
fruit peels hydrolysis, filtration, • Highly unorganized road side
clarification, etc. vendors, stalls, etc.
• Various fruits used for extraction of
pectin include apple, guava, papaya,
plums, oranges, grapes and other citrus
fruits.
Market share
High

Market growth
Pectin
Bargaining power of supplier: (LOW) production

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
42

TOP 16
5.6. PECTIN EXTRACTION/PRODUCTION

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Working Capital: INR 1.5 Cr. (per annum)

The global pectin market is
• Capacity: 1 ton RM/ day expected to reach $1.9 billion in
the next 5 years.
Growth in the usage of healthy
• BEP (Break Even Point): in 2nd year raw materials in processing,
rising health concern, etc. are
driving the pectin market.
Has primary applicability in fruit
based drinks, bakery, dairy,
confectionery products.
43

TOP 16
5.7. COCONUT PROCESSING

STRENGTHS:
• Government support in promotion
• Coconut is a versatile fruit having an and export of new coconut products.
important place in Indian culture. • Availability of raw material.
• Apart from traditional products, Coconut WEAKNESSES:
can be processed into number of • Low shelf life once coconut is cracked
innovative products now including • Mechanical operations.
coconut jam, wine, chips, spray dried
milk powder, vinegar, etc. OPPORTUNITIES:
• Huge applicability
• Also, the coconut shell, coir, pith,
• Export demand
coconut oil cake, etc. can be processed
into byproducts having commercial and THREATS:
industrial use. • Highly unorganized market presence
• Existing brands.
Market share
High

Market growth
Bargaining power of supplier: (MEDIUM) Coconut

PU

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
44

TOP 16
5.7. COCONUT PROCESSING

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Working Capital: INR 70 Lakh (per annum) Currently, India holds the third
position in the world in coconut
• Capacity: 2 tones / day production. Yet, as products
(food/drink) it hasn’t seen much of
• ROI (Return On Investment): 30% a progress in the market.
• BEP (Break Even Point): in 2nd year The thirst quenching properties,
nutritional and medicinal benefits,
wide applicability in pharma,
cosmetic and foods like desserts,
bakery, ice creams, & other
confectionery items will raise the
demand in the market.
45

TOP 16
5.8. LIQUID SOAP MANUFACTURING

• Soap is a salt of fatty acids primarily STRENGTHS:
used for cleansing, washing, etc. • Increasing preference for liquid soaps
• The popularity of liquid soaps has over bar soaps.
increased considerably since the last 3 • Rise in consumer spending on
months. One of the major reason behind personal care products.
its popularity is the convenience offered WEAKNESSES:
by them over bar soaps. • Inadequate Technical Expertise.
• The potential of liquid soaps to
OPPORTUNITIES:
moisturize, deodorize, exfoliate the skin
• High potential in domestic and
is increasing its demand in the market.
overseas market.
• Government initiatives and support
towards improving the hygiene factor in THREATS:
the country has been on rise due to • Emerging local producers
pandemic.
Market share
High

Liquid soap
Market growth
Bargaining power of supplier: (LOW) MU

Low
GE 9 CELL MATRIX
100 50 0
100
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
46

TOP 16
5.8. LIQUID SOAP MANUFACTURING

Connectivity
Business Team
Plan • Land
• Office
Company List of • Plant setup
Registration vendors
• Utilities
• Road access
• Connectivity

There has been a tremendous
• Capacity: 3 tones / day
growth in awareness regarding
• ROI (Return On Investment): 33% personal hygiene now, driving
the demand for liquid soaps in
• BEP (Break Even Point): in 1st year the global market.
Organic, plant based ingredients,
increasing fragrance & flavor
options, etc. are trending over
the products with sulphates and
parabens.
47

TOP 16
5.9. INDIVIDUAL QUICK FREEZING (IQF) OF FRUITS AND VEGETABLES

STRENGTHS:
• Freezing is the most ancient method for
• Easy raw material availability
food preservation. Though Individual • Quick and convenient.
Quick Freezing (IQF) is one of the
modern method where each individual WEAKNESSES:
piece of food is frozen separately at a • Perishable nature of vegetables and
high speed resulting in formation of fruits
small ice crystals, without any addition • Costly and new in local market.
of preservative and increasing the shelf
OPPORTUNITIES:
life up to 24 months.
• Export demand
• Fruits like peaches, berries, etc.
vegetables like corn, peas, leafy THREATS:
vegetables, sea food like shrimp, poultry, • Substitutes
scallop, etc. can be frozen using IQF. • Environmental threats
Market share
High

Market growth
IQF Fruits &

Bargaining power of supplier: (MEDIUM) Vegetables

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
48

TOP 16
5.9. INDIVIDUAL QUICK FREEZING (IQF) OF FRUITS AND VEGETABLES

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Capacity: 5 tones / day Consumers are opting for IQF

fruits and vegetables owing to its
• ROI (Return On Investment): 45% high nutritional value and longer
shelf life rather then fresh or any
• BEP (Break Even Point): in 1st year
other conventionally frozen F&V.
The global IQF fruits market is
estimated to grow at a CAGR of
5.5% during 2020-2025
49

TOP 16
5.10. INTRAVENOUS FLUIDS (IV) MANUFACTURING
• Intravenous fluids are liquids given to STRENGTHS:

replace water, sugar and salt to ill • Huge demand
persons or those having an operation, • Available infrastructure
and can't eat or drink as would do
WEAKNESSES:
normally.
• Timely change in regulations by
• Most common technologies used in authorities.
Intravenous Fluids (IV) include Blow- • Capital intensive
Fill-Seal (BFS) Technology and form fill
seal (FFS) technology. OPPORTUNITIES:
• The demand and supply gap in
• The primary costumers for these market provides opportunity.
manufacturing units are Hospitals,
Clinics, Dialysis centers, Home care THREATS:
settings. • Stringent government regulations.
• Existing and new entrants.
Market share
High

IV Fluids
MU
Market growth

Low
GE 9 CELL MATRIX
100 50 0
100
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
50

TOP 16
5.10. INTRAVENOUS FLUIDS (IV) MANUFACTURING

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Fixed Capital: INR 1-2 Cr.
• Working Capital: -
• Capacity: 5000 bottles / day The global Intravenous Fluid

market size was valued at US$
• ROI (Return On Investment): 40% 8,372 million in 2019 and is
expected to witness a CAGR of
• BEP (Break Even Point): in 1.5 years
6.1% over the forecast period
(2019 – 2027).
51

TOP 16
5.11. ESSENTIAL OIL EXTRACTION FROM SPICES

• Essential oil is a liquid that is
extracted most commonly by steam STRENGTHS:
distillation from parts of the plants. • Raw material availability
• Spices form the most important part WEAKNESSES:

of our food. Spices contain essential • Expensive
oils that add flavor to foods. • Infrastructure availability
• These essential oils, oleoresins have a OPPORTUNITIES:
good demand in the market and quite • Export demand
expensive as well due to their volatile
nature and limited yield. THREATS:
• Environmental threats
• Continuous innovation and • Substitutes
upgradation in processes helps to
cater the global demand.
Market share
High

Essential oil
extraction
Market growth

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
52

TOP 16
5.11. ESSENTIAL OIL EXTRACTION FROM SPICES

Connectivity
Business Team
Plan
• Land
• Office
Company • Skilled manpower
List of
Registration vendors • Plant setup
• Utilities
• Road access
• Connectivity
• Fixed Capital: INR 0.8-1 Cr.
• Working Capital: -
• Capacity: 10 kg / day Essential oils have applicability

in perfumery, soaps,
• ROI (Return On Investment): 44% confectionery, bakery,
beverages, meat canning, etc.
• BEP (Break Even Point): in 1.5 years
International market has a
huge demand for essential oils
and AP presents good
proximity to overseas market
generating potential.
53

TOP 16
5.12. ONION SEED OIL EXTRACTION/PROCESSING

STRENGTHS:
• Onion seed oil is extracted by the • Government support in starting unit
process of steam distillation. • Huge applicability
• The market for onion is highly volatile WEAKNESSES:

throughout the year, which provides the • Fluctuating raw material cost
scope for processing. Moreover the • Large expenditure
popularity of onion oil has drastically • Low yield
increased in the cosmetic industry OPPORTUNITIES:
recently. • Increased attractiveness among
• Other products obtained from onions consumers
include onion powder, paste, dehydrated • Global scalability
onion flakes, onion vinegar, onion sauce, THREATS:
onion wine and beverages, etc. • Environmental Threats (weather)
Market share
High

Market growth
Onion seed
Bargaining power of supplier: (HIGH) oil

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
54

TOP 16
5.12. ONION SEED OIL EXTRACTION/PROCESSING

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Working Capital: INR 0.75-1 Cr (per annum)

Onion has a significant
• Capacity: 2 tones / day contribution in the culinary
dishes worldwide. The
antibacterial, aphrodisiac,
• BEP (Break Even Point): in 2nd year Antiviral, and antiseptic
properties has increased the use
of onion oil in cosmetic and
personal care industry. The
market will witness a healthy
CAGR in the future.
55

TOP 16
5.13. EMPTY GELATIN CAPSULE MANUACTURING

STRENGTHS:
• Gelatin is a colorless, odorless and • Longer shelf life and high
tasteless substance derived from digestibility of product.
collagen in animals. • High popularity
• Sources used for gelatin extraction
WEAKNESSES:
include skin, cartilage and bones of
• Strict quality regulations
animals.
• Government regulations
• It can be utilized for production of
capsules which can be hard or soft in OPPORTUNITIES:
which one or more drug substances are • High applicability in pharma and
cosmetic industry.
enclosed.
• Most commonly hard gelatin capsules THREATS:
are manufactured in the market. • Environmental Threats
• Existing competitors
Market share
High

Market growth
Empty gelatin
Bargaining power of supplier: (LOW) capsules MU

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
56

TOP 16
5.13. EMPTY GELATIN CAPSULE MANUACTURING

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity

The market for empty gelatin
• Capacity: 14,00,000 / day
capsules is projected to reach
$2.5 billion till 2023 growing at a
CAGR of 7% y-o-y.
• BEP (Break Even Point): in 1.5 years Growth in capsule formulation
for geriatric population, growth
in pharma market are driving
market.
New trend for search of non-
animal based products is
emerging.
57

TOP 16
5.14. TAMARIND PROCESSING
STRENGTHS:
• Andhra Pradesh is among the top • Government support in starting unit
producers of tamarind in India. • Raw material availability
• Tamarind has been recognized in
WEAKNESSES:
Ayurveda for treating various disorders,
• Fluctuating raw material cost
and rich in nutrients.
• Not so good infrastructure
• A number of products processed include
tamarind paste, concentrate, pulp, OPPORTUNITIES:
powder, syrup, sauce, gelatin, candy, etc. • Wide applicability and demand in
food and healthcare industry
• Tamarind kernels can also be processed • Global scalability
to produce thickening agent; widely
applicable in textile industry. THREATS:
• Competition from local brands
Market share
High

Tamarind PU
Market growth

Low
Threat of industry competitors: (LOW)
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
58

TOP 16
5.14. TAMARIND PROCESSING

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Working Capital: INR 65 Lakhs (per annum)
• Capacity: 3 tones / day

The demand for tamarind in
• ROI (Return On Investment): 28% the spices and seasoning
industry, healthcare industry
• BEP (Break Even Point): in 1st year
and the adoption of Ayurveda
are expected to drive
tamarind extract and its
product’s market growth.
59

TOP 16
5.15. BIODEGRADABLE PHARMACEUTICAL PACKAGE MANUFACTURING
• The rise in environment friendly STRENGTHS:

policies and products in the market • Environment friendly
has caused the search for new • Alternative for traditional plastics
alternatives for plastic products in
the market. WEAKNESSES:
• High cost
• One such is biodegradable plastic • Low awareness
which can be obtained from plant
sources like corn, sugarcane, potato, OPPORTUNITIES:
wheat, rice. • Government initiatives for
biodegradable products.
• A flexible, rigid, versatile, non-toxic,
biodegradable, recyclable plastic can THREATS:
be obtained from these sources. • Environmental Threats (weather)
• Traditional plastic manufacturers
Market share
High

Market growth
Biodeg. Pharma
Bargaining power of supplier: (LOW) pkg.

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
60

TOP 16
5.15. BIODEGRADABLE PHARMACEUTICAL PACKAGE MANUFACTURING

Connectivity
Business Team
Plan
• Land
• Office
Company List of • Skilled manpower
Registration vendors • Plant setup
• Utilities
• Road access
• Connectivity
• Fixed Capital: INR 1-2 Cr.
• Capacity: 1 ton / day

Increased government interest
• ROI (Return On Investment): 35% in Biodegradable products, rise
in educated population,
• BEP (Break Even Point): in 2nd year technological innovations,
search for sustainable
packaging solutions is driving
the demand in the market.
61

TOP 16
5.16. ALTERNATIVE WATER BEVERAGE MANUFACTURING
• An alternative beverage is any non- STRENGTHS:

alcoholic beverage, may have added • Government support in starting unit
health benefits, with non-traditional • Raw material availability.
ingredients.
WEAKNESSES:
• Various water alternative beverages • Fluctuating raw material cost
include coconut water, maple water, • Perishability of fruits
aloe water, chlorophyll water, citrus
OPPORTUNITIES:
water, watermelon water, etc.
• Domestic as well as Global scalability
• Coconut water dominated the market
of alternative water beverages. THREATS:
• High competition from international
brands.
Market share
High

Market growth
Onion seed
Bargaining power of supplier: (LOW) oil

Low
GE 9 CELL MATRIX
100 50 0
10
0
BUSINESS STRENGTH
- Go
- Caution
50
- Stop
0
62

TOP 16
5.16. ALTERNATIVE WATER BEVERAGE MANUFACTURING

Connectivity

Plan • Office
• Plant setup
Company List of
vendors
• Road access
• Connectivity
• Fixed Capital: INR 0.5 Cr.
• Working Capital: INR 0.7 Cr (per annum)

Alternative water beverages
• Capacity: 2 tones / day are being recognized as “super
drinks” in the global market.
Majority of the demand for
• BEP (Break Even Point): in 1.5 years alternative water beverages
come from north and south
America.
The market would reach the
value of $5.4 billion in the
current year 2020.
63

CHAPTER SIX
MBP ANALYSIS
64
MBP ANALYSIS
Based on our study about Vijayawada, biotechnology, Real estate, etc. in

the city provides ample of opportunities Vijayawada.
in the Agro and Food processing sector
due to higher production of Agri produce The city has been adopting an advanced
in the state and good connectivity of the lifestyle along with retaining the city’s
city to nearby states. ancient culture. The service sector has
few challenges owing to the traffic and
The entire Krishna district as well as other problems caused by rising
Vijayawada city has seen many ups and population and now the changing
downs in the economy owing to the attitude towards spending capacity of
political changes in the state of Andhra people post the pandemic. Yet entering
Pradesh. Though, presents a vivacious with good strategies will help the sector
economic environment, low cost of living flourish.
compared to other metropolitan cities
like Hyderabad, Chennai in the south These advancements would not have
India, Presence of Agriculture and Food been possible without the support of
Processing Zone surrounding the city state government. The government role
that would favor the business. in support of industries is driving the
sectors and it is positive towards
The IT/ITES companies have also attracting Foreign Direct Investment in
grounded their roots due to the pleasant the city and suburbs.
environment as well as nearness with the
major state’s IT Parks. Here, it will Various business ideas have been
provide the future opportunities for food suggested in this report based on our
manufacturing and service business, study about the region.
65

CHAPTER SEVEN
DESCLAIMER
66
DESCLAIMER
MBP is Business Planning, market MBP takes no responsibility for any

research, consulting and strategic incorrect information provided &
analysis services providing company and supplied and also takes no responsibility
its name, logo & trademarks are owned for any loss and or damage to tangible
by Meticulous Business Solutions Private assets, intangible assets and or financials
Limited. The plans, reports & services of the buyer and or user and or reader.
offered by MBP are limited publications No part of this plans, reports & services
containing valuable business may be given, lent, resold or disclosed to
information, market information, non-customers without written
contacts & financial projections are permission from MBP.
provided to a selected group of
customers in response to interest or The refund policy will not be valid after
written purchase orders. Our customers delivery of products and services. Thus, it
acknowledge that plans, reports & is non-refundable after dispatch and or
services are for customers’ internal use delivery of the products & services.
and not for general publications or
disclosure to third parties. All the All the images/pictures and company
information, financial projections, logos used in this document are for the
qualitative & quantitative market representation and information purpose
information are based on primary only.
interviews, market trends & market
values and therefore, are subject to vary.
67

Thank You!
Meticulous Business Plans, Pune
http://meticulousbplans.com
info@meticulousbplans.com

Mroar - Vijayawada

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MARKET

We are business planning experts; we help plan your dream business

INDIA’S FIRST – Integrated Business Planning Company

WE ARE - BUSINESS PLANNERS

2 VIJAYAWADA: AS A LOCATION OF BUSINESS 9

2.1 RESOURCES AVAILABLE 9

2.2 ENVIRONMENTAL ANALYSIS 10

2.3 EXISTING INFRASTRUCTURE 11

3.1 GEOGRAPHICAL OVERVIEW 17

3.2 DEMOGRAPHICAL ANALYSIS 18

3.3 ECONOMICAL OVERVIEW 20

3.4 BUSINESS ENVIRONMENT 21

3.4.1 ETOP ANALYSIS 21

3.4.2 PESTLE ANALYSIS 22

3.5 MARKET DYNAMICS 24

3.5.1 GROWTH DRIVERS 24

3.6 DEMAND & SUPPLY MATRIX - MAJOR PRODUCTS 25

3.7 UNTAPPED MARKET OPPORTUNITIES 26

3.7.1 FOR EXISTING PRODUCTS 26

3.7.2 FOR NEW PRODUCTS 27

3.8 POTENTIAL BUSINESS IDEAS 28

4 GLOBAL - AS AN EXPORT MARKET 30

4.1 EXISTING PRODUCT AND OPPORTUNITIES 30

5 TOP 16 POTENTIAL BUSINESS IDEAS 32

5.1 BANANA POWDER MANUFACTURING 32

5.2 BIODEGRADABLE SANITARY NAPKINS MANUFACTURING 34

5.3 BIOLOGICAL DRUGS MANUFACTURING 36

5.4 ACTIVATED CARBON MANUFACTURING 38

5.5 PACKAGED SUGARCANE JUICE PROCESSING 40

5.6 PECTION EXTRACTION/PRODUCTION 42

5.7 COCONUT PROCESSING 44

5.8 LIQUID SOAP MANUFACTURING 46

INDIVIDUAL QUICK FREEZING (IQF) OF FRUITS AND

5.10 INTRAVENOUS FLUIDS (IV) MANUFACTURING 50

5.11 ESSENTIAL OIL EXTRACTION FROM SPICES 52

5.12 ONION SEED OIL MANUFACTURING 54

5.13 EMPTY GELATIN CAPSULE MANUFACTURING 56

5.14 TAMARIND PROCESSING 58

BIODEGRADABLE PHARMACEUTICAL PACKAGE

5.16 ALTERNATIVE WATER BEVERAGE MANUFACTURING 62

COPYRIGHT © 2020 METICULOUS BUSINESS PLANS.

MROAR – Vijayawada Copyright © MBP 2020

 Major Crops:  Minerals:

MROAR – Vijayawada Copyright © MBP 2020

2.2. ENVIRONMENTAL ANALYSIS

March till Mid June: average temperature between

June till mid October: average annual rainfall of

November till February: average temperature

HIGHEST TEMPERATURE (˚C)

HIGHEST RAINFALL (in mm)

MROAR – Vijayawada Copyright © MBP 2020

2.3. ENVIRONMENTAL ANALYSIS 2.3. EXISTING INFRASTRUCTURE

MROAR – Vijayawada Copyright © MBP 2020

• Krishna Canal, Ramavarappadu, 2.3.4. Industrial Scenario:

MROAR – Vijayawada Copyright © MBP 2020

Government of AP has identified Textiles, APITCO

MROAR – Vijayawada Copyright © MBP 2020

2.3.5. Health And Medical: • The government general hospital,

2.3.6. Banking Sector:

2.3.7. Government Initiation: Development and Refinance Agency

MROAR – Vijayawada Copyright © MBP 2020

MROAR – Vijayawada Copyright © MBP 2020

3.1. GEOGRAPHICAL OVERVIEW