Floriculture Market – India (Part I)

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August 2010
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 Executive Summary
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Floriculture market is booming in India and is expected to grow at 25% p.a.
Market
The area under floriculture cultivation and production of cut flowers and loose flowers is also
increasing

International market provides very good opportunity for the floriculture sector in India

Drivers Challenges
Drivers &
Scientific methods of flower cultivation
Lack of support infrastructure

Favourable agro-climatic conditions
Dearth of basic inputs
Challenges

Social and religious events
High Duty in the European Union

International Events and Associations

Growing demand from the youth population

Players are acquiring companies in
Entry of corporate houses

Ethiopia
Players are increasing their service
Trends
Setting up auction centres offerings

PE Investments and Acquisitions
Rapid development of flower retail
chains

Most of the players in the market are engaged in production of flowers and export
Competition
Players are acquiring companies in the international market to expand their business operations

Players in the industry include Karuturi Global Ltd., Neha International, Pochiraju Industries

FLORICULTURE MARKET IN INDIA 2010.PPT 2

 3
•Geographical Distribution
•Export & Import Market

•Government Initiatives
•Drivers & Challenges

FLORICULTURE MARKET IN INDIA 2010.PPT

•Key Developments
•Market Overview

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•Competition
•Trends
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 Floriculture market is flourishing in India with tremendous
growth opportunities
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Market Overview Market Size & Growth
• Floriculture market in India is booming amidst the INR bn
growing interest of the farmers and the business 25 +25% 22
houses

India is the second largest producer of flowers after China
20
• In 2008-09 the total area under flower crops was 15 11
167,000 hectares while in 2007-08, the same was 10
160,700 hectares 5

It includes traditional flowers such as marigold, jasmine,
aster, rose, chrysanthemum, tuberose and modern flowers
0
like carnation, rose, gerbera, gladiolus, anthodium 2008 2011e
• India has more that 300 export oriented units Production of Flowers
• Floriculture products mainly consist of cut flowers,
pot plants, cut foilage, seeds bulbs, tubers, rooted Cut Flowers Loose Flowers
cuttings and dried flowers or leaves +13%
bn MT

The international demand is driven by cut flowers +163% 987
including rose, carnation, chrysanthemum, gargera, 150 1,000 870
gladiolus, gypsophila, liastris, nerine, orchids, archilea, 113
800
anthuriu, tulip, and lilies 100
600
• Popular flowers used in the modern floriculture that 43 400
50
are in demand are roses, anthurium, gerbera, 200
gladioli, orchids, carnations 0 0
2007-08 2008-09 2007-08 2008-09
Source: IBEF “Flower Power”, Nov 2008; APEDA; Valley Fever Art “Indian Floriculture and Gogreen Farms”, Sep 2009

FLORICULTURE MARKET IN INDIA 2010.PPT 4

 5
•Geographical Distribution
•Export & Import Market

•Government Initiatives
•Drivers & Challenges

FLORICULTURE MARKET IN INDIA 2010.PPT

•Key Developments
•Market Overview

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•Competition
•Trends
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 Floriculture industry is widely spread across the various
states in India
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Overview Geographical Distribution
• More than 50% of around 300 floriculture units
are based in Karnataka, Andhra Pradesh, Tamil
Nadu Agri export zones
Jasmine

West Bengal, Maharashtra and Rajasthan also have Chrysanthemums
large areas under floriculture Carnation
• While in terms of production of loose flowers, Gladiolus
Rose
Tamil Nadu is the leader and in terms of
Gerberra
production of cut flowers, West Bengal is the
leader

Production of Loose Flowers (2008-09) Production of Cut Flowers (2008-09)

Tamil Nadu West Bengal
7% Karnataka 10%
Karnataka
4%
5% 25% Andhra Pradesh Maharashtra
5%
7%
6% Maharashtra Gujarat
44%
Punjab Uttar Pradesh
8% 10%
Haryana Uttarkhand
9% 21% West Bengal Others
12%
Gujarat
14% 12%
Others

Source: Opaals “Floriculture industry in India the bright future ahead”, Jul 2010; India.gov.in “Floriculture”, Apr 2010

FLORICULTURE MARKET IN INDIA 2010.PPT 6

 Punjab and Uttar Pradesh leads the floriculture industry in
the northern zone of India
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North

Overview – North India State-wise Area Under Production

•In the northern part of the country, the 2007-08
maximum area under flower production is in 000’ hectare 2008-09
Uttar Pradesh (UP) 15 13.5
•The production of loose flowers is highest in 10.3
10
Punjab 6.1 5.5 5.5 5.5
•In terms of production of cut flowers, Uttar 5
1.0 1.7 0.6 0.6 0.3 0.1
Pradesh is the leader 0
UP Haryana Delhi Punjab HP J&K

State-wise Production of Cut Flowers State-wise Production Of Loose Flowers

0 10 20 30 40 50 60 70 80 90
0 50 100 150 200 250 300 350 000’ MT
78
mn Punjab 82
293
UP 347 62
Haryana
105 54
Haryana 18
93 UP 24
104 6
Delhi 104 Delhi 6
57
HP 57 3
HP 3
2007-08 2007-08
J&K 22 1
2 2008-09 J&K 2008-09
0
Source: India Horticulture Database 2009

FLORICULTURE MARKET IN INDIA 2010.PPT 7

 Tamil Nadu and Karnataka dominates the floriculture
industry in the southern part of India
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South

Overview – South India State-wise Area Under Production

•In the southern part of the country, the 2007-08
maximum area under flower production is in 2008-09
000’ hectare
Tamil Nadu (T.N) 29.1
30 26.7 25.1 26.0 23.5
•Tamil Nadu also leads in the volume of 19.5
20
production of loose flowers
•While, cut flowers is only produced in 10

Karnataka (KA) 0.3 0.3

0
T.N. KA A.P. Pondicherry

State-wise Production of Cut Flowers State-wise Production of Loose Flowers

0 10 20 30 40 50 60 0 50 100 150 200 250
mn 000’ MT
214
57.0 T.N. 234
KA
59.0 180
KA 204

0.0 107
A.P. 125
A.P.
0.0 3
2007-08 Pondicherry 2 2007-08
2008-09 2008-09

Source: India Horticulture Database 2009

FLORICULTURE MARKET IN INDIA 2010.PPT 8

 West Bengal leads the floriculture sector in the east
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East

Overview – East India State-wise Area Under Production

•In the eastern part of the country, the 000’ hectare 2007-08
maximum area under flower production is in 30 27.4 2008-09
West Bengal (WB) 21.1
20
•West Bengal leads in terms of production of
cut flowers and loose flowers 10 5.7
•Floriculture is gradually developing in parts of 2.4 2.4 2.4
0.1 1.6 0.2 0.2
Jharkhand 0
WB Chhattisga Jharkhand Orissa Bihar
rh
State-wise Production of Cut Flowers State-wise Production of Loose Flowers
0 500 1000 1500 2000 2500 0 10 20 30 40 50 60
mn 48 000’ MT
1968 WB 52
WB
2123 7
Chhatisgarh 7
7 2
Jharkhand Bihar 2
171
7
Orissa 23
1
Bihar 0
1 Jharkhand 0
2007-08 2007-08
2008-09 2008-09
Source: India Horticulture Database 2009

FLORICULTURE MARKET IN INDIA 2010.PPT 9

 Maharashtra dominates the floriculture industry in the
western region of the country
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West

Overview – West India State-wise Area Under Production

•Maharashtra is the leader in terms of the area 000’ hectare 2007-08
under production of flowers 20 2008-09
16.7 16.4
•Also, the highest production of cut flowers and 15
9.7 9.7
loose flowers happens in Maharashtra 10
4.3 3.4
•In the west, Gujarat closely follows 5 2.6 3.0
Maharashtra in terms of production of cut 0
flowers Maharashtra Gujarat Rajasthan MP

State-wise Production of Cut Flowers State-wise Production of Loose Flowers

0 100 200 300 400 500 600 0 10 20 30 40 50 60 70 80 90
mn 000’ MT
69
573 Maharashtra
Maharashtra 89
573
50
Gujarat 50
506
Gujarat 6
506 Rajasthan 5

2007-08 2 2007-08
MP 2
2008-09 2008-09

Source: India Horticulture Database 2009

FLORICULTURE MARKET IN INDIA 2010.PPT 10

 Thank you for the attention
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The Floriculture Market in India report is a part of Research on India’s Consumer Goods
Industry Series.
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Gagan Uppal Gaurav Kumar
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FLORICULTURE MARKET IN INDIA 2010.PPT 11