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Start-up Kashmir!

MARKET OPPORTUNITIES GUIDEBOOK

START-UP KASHMIR! MARKET OPPORTUNITIES GUIDEBOOK


80 BIG IDEAS TO HELP KICKSTART YOUR BUSINESS

Start-up Kashmir! Market Opportunities Guidebook: 80 Big Ideas to Help Kickstart Your Business Copyright 2012 by Mercy Corps.

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All rights reserved. Printed in Jammu & Kashmir. No part of this book may be used or reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews.

FIRST EDITION

DISCLAIMER If the reader requires expert assistance, legal or technical, a competent professional should be consulted. All aspiring entrepreneurs who consult this document are suggested to first consult a professional business development service provider prior to the start of their venture based on the identified market opportunity. Any opinion, analysis, observation, commentary and/or statement made in this booklet are solely statements of opinion based on information obtained from varied sources which the SKYE Project believes to be reliable and authentic; however, they should not be taken as a statement of fact under any circumstance. This booklet presents a list of eighty potential market opportunities considering the local context, feasibility and future or current demand and does not in any way encompass all of the market opportunities available in Kashmir. Any user of this document should not rely solely on the information contained in this document and should not consider the facts or figures as a basis to make a business investment decision.

For more information about the SKYE Project or comments about errors or omissions in this booklet, please e-mail us at skye@in.mercycorps.org. http://www.startupkashmir.com http://www.mercycorps.org

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CONTENTS

ACKNOWLEDGMENTS .............................................................................................................. 7 INTRODUCTION .......................................................................................................................... 8

Agribusiness........................................................................................................................... 10
Potato Cultivation .................................................................................................................. 13 Bioplastic from Potatoes ....................................................................................................... 14 Fresh-cut French Fries ........................................................................................................... 15 Potato Chips............................................................................................................................ 16 Potato Seeds ............................................................................................................................ 17 Onion Cultivation .................................................................................................................. 18 Branded Kashmir Honey ..19 Mushroom Cultivation, Processing and Packaging ......................................................... 20 Supply, Processing and Grading of Saffron ...21 Production of Vegetable Seeds............................................................................................. 22 Trout Farming and Processing (Smoked Trout) ................................................................ 23 Cut Flowers and Foliage ....................................................................................................... 24 Flower Seeds/Lillium and Tulip Bulbs .............................................................................. 25 Geranium Oil .......................................................................................................................... 26 Lavender Oil ........................................................................................................................... 27 Rose Oil ................................................................................................................................... 28 Handcrafted Luxury Soaps .................................................................................................. 29 Processing and Packaging of Walnuts and Almonds ....................................................... 30 Cultivation and Processing of Strawberry ......................................................................... 31 Fruit Jams .....32 Kashmiri Pickles .33 Canned Wazwan.34 Butter and Ghee ..................................................................................................................... 35 Dairy Farming (Direct Consumption of Milk)................................................................... 36 Ice Cream.................................................................................................................................. 37 Feed for Poultry ........................................................................................................................ 38 Poultry Farming (live chickens) ........................................................................................... 39 Chicken Processing/(Frozen) Packaging ........................................................................... 40

5 Poultry Farming for Eggs ..................................................................................................... 41 Sheep Farming (live sheep) .................................................................................................. 42 Mutton Processing/(Frozen) Packaging ............................................................................ 43 Leather Tanning ..................................................................................................................... 44 Wool Processing ..................................................................................................................... 45 Cold Storage ........................................................................................................................... 46 Mineral Water Bottle Plants ................................................................................................. 47 Apple Juice Concentrate and Packaged Juice .................................................................... 48 Silk Cocoon and Silk Thread Production ........................................................................... 49

Green Business ..................................................................................................................... 50


Recycled Paper Products ...................................................................................................... 52 Jute Bags .................................................................................................................................. 53 Solar Power/Solar Heating .................................................................................................. 54 Micro-Hydro Power Projects................................................................................................ 55 Biomass Fuel Briquettes ........................................................................................................ 56 Energy-Efficient Stoves ......................................................................................................... 57 Bio-diesel ................................................................................................................................. 58

Handicrafts.............................................................................................................................. 60
Chain Stitch Rugs ................................................................................................................... 63 Copperware ............................................................................................................................ 64 Embroidery (Kurties and Overcoats) .................................................................................. 65 Embroidery (Tilla).................................................................................................................. 66 Kashmiri Wool Carpets ......................................................................................................... 67 Kashmiri Crewel Curtains .................................................................................................... 68 Kashmiri Wool Scarves, Socks, Sweaters, Tweed Blazers, and etc. ................................ 69 Namdas and Gabbas ............................................................................................................. 70 Papier-Mache Products (boxes, bangles, Christmas ornaments, table lamps and etc.)71 Shawls Pashmina, Woollen ............................................................................................... 72 Wood Carving ......................................................................................................................... 73 Silverware and Silver Jewellery ........................................................................................... 74

Information Technology .................................................................................................. 76


Business Process Outsourcing/IT Outsourcing ................................................................ 78 E-commerce Solutions ........................................................................................................... 79 E-Learning ............................................................................................................................... 80 Graphic Design ...81 IT Hardware Service Centres ............................................................................................... 82 Internet Portals ....................................................................................................................... 83 IT Education and Training.....84 Knowledge Process Outsourcing (KPO) ............................................................................ 85 VLSI Design and Development Training ...86 Software Development .......................................................................................................... 87 Mobile Apps ........................................................................................................................... 88 Website Design and Development ...................................................................................... 89 Social Networking (PR 2.0)/Advertising and PR ............................................................. 90

Tourism .................................................................................................................................... 92
Adventure Tourism ............................................................................................................... 94 Boutique Hotels/Bed & Breakfasts/Youth Hostels.......................................................... 95 Small Restaurants/Fast Food Kiosks .................................................................................. 96 Fresh Fruit Juice Stalls ........................................................................................................... 97

Others ........................................................................................................................................ 98
Hollow Cement Blocks .......................................................................................................... 99 Cement Tiles ......................................................................................................................... 100 Cricket Bat Production ........................................................................................................ 101 Wedding Planning Services................................................................................................ 102 Event Management Services .............................................................................................. 103 Small Healthcare Clinics ..................................................................................................... 104 Dental Clinics ....................................................................................................................... 105

Annexure: Funding Schemes/Programmes and Financial Incentives106

ACKNOWLEDGMENTS The preperation of this guidebook has been an extensive, collaborative and consultative process, engaging a large number of individuals from J&K. Mercy Corps acknowledges the breadth of contributions made and the willingness of individuals and organisations to be involved, providing much needed support that has enabled us to produce such a comprehensive and informative document. In particular, Mercy Corps would like to thank the students and faculty of the School of Business Studies, the Islamic University of Science and Technology for their efforts. We would also like to thank Iram Irshad, Omaid Nazir, Burhan Yaseen and Samiya Andrabe for their great contributions to this guidebook, who worked for Mercy Corps on a volunteer basis during the production of this document. A special thanks to Malik Sajad for contributing his creative talent and providing us with the illustrations for this guidebook. We also wish to thank the entrepreneurs, J&K Government officials, representatives of financial institutions and especially JKEDI for their cooperation and support in providing information and data for this document.

1+1=11! SKYE Project Team

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INTRODUCTION Kashmirs challenging unemployment scenario has been exacerbated by a long, complex conflict and protracted instability. The tenuous local economy has left many Kashmiris with few or no options for economic engagement. While unemployment impacts all sections of Kashmir society, it particularly impacts Kashmirs youth who represent more than 71% of the population of the Kashmir Valley1. Of the large cohort of youth between the ages of 18 to 30 in the Kashmir Valley, an estimated 48% are currently unemployed2. Eradicating unemployment is one of the toughest challenges but a very critical problem that must be overcome. Mercy Corps believes there is hope for a better economic future in Kashmir. The hope is rooted in reviving a culture of entrepreneurship and creating an ecosystem where young job-seekers choose instead to become job-creators and redefine the economic future of Kashmir along the way. The objective of this Market Opportunities Guidebook is to spark new ideas, conversations and actions by potential Kashmiri youth start-up entrepreneurs to create new enterprises in Kashmir. Entrepreneurship in Kashmir does not have to be necessity-driven an option of last resort in the face of grim job prospects. Increased awareness about existing market opportunitites can attract and motivate young people towards entrepreneurship. Barriers to entry in most sectors have significantly reduced, opening vast opportunities for small start-up companies. If directed at the right market opportunities and provided with the right support, Kashmiri youth entrepreneurs could create value with relatively little capital. There are immense opportunities to offer new products and services that cater to the evolving demands of the local market. Kashmir is an untapped market with a large dependency on imports of products and services produced from outside Kashmir. Kashmiri entrepreneurs can also seize the expanding market opportunities in India and across the globe in a number of sectors and niche areas. As the details presented in this Market Opportunities Guidebook reveal, there are substantial market opportunities for gainful and productive employment through entrepreneurship just waiting to be identified and seized upon by young people in Kashmir. In fact, the possibilities are limitless. Indeed, this guidebook identifies a range of market opportunities that represent a combined potential market size of Rs. 455,684,402 crore (US$ 92.6 trillion) just waiting to be seized! The Market Opportunities Guidebook spotlights 80 potential opportunities for starting new businesses. It focuses on five major industry sectors - Agribusiness, Green Business, Handicrafts, Information Technology and Tourism. These five sectors were selected for study as they have emerged as high-priority sectors in the Kashmir Valley. A number of opportunities within all of the above sectors have been reviewed based on geographical location, potential market size (Kashmir, national and international), key customer segments and the potential advantages of starting the enterprise in Kashmir. Conservative estimates have been used to calculate the market potential but should only provide a starting point for future entrepreneurs to evaluate the feasibility of an opportunity. Potential youth start-up entrepreneurs are encouraged to use this guidebook as an idea-generating tool to further explore and evaluate opportunities for starting a business. Therefore we highly recommend that before starting a venture, entrepreneurs seek the appropriate technical advice from an appropriate service provider in order to evaluate the business opportunity in detail. The discussion of opportunities in this booklet is limited by the availability of primary data. However, wherever available, information from secondary sources has been incorporated to provide a better idea of the value and viability of a particular market opportunity.

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Projection based on district-wide data for the Kashmir Valley, Census 2001, Govt of India Projection based on March 2010 data collected by DECC, Govt of J&K

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Agribusiness

Agribusiness forms the foundation of the economy of Jammu & Kashmir. The industry contributes to nearly 60% of the states revenue and 22% of the Gross State Domestic Product (GSDP). It is also estimated that nearly 80% of the states population is engaged in agriculture and its allied sectors. According to a 2005 research study3, the agribusiness sector holds great prospect for economic growth. Contributing factors for development include massive export potential, abundant However, future entrepreneurs should not consider agribusiness as availability of surface and groundwater for irrigation, and an agro-climatic zone ideal for local fruit and vegetable production. limited to farming. For instance, value-addition through processing and branding of fruits,

Agribusiness in Jammu and Kashmir: Prospects and Challenges, India Development Foundation,2005 http://www.idfresearch.org/sps/docs/srippt4.pdf

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vegetables, dairy/meat products, spices and oils also offers diverse entrepreneurial opportunities. Furthermore, aspiring entrepreneurs possess the power to advance Kashmirs national and international market footprint by realizing the unique export potential of organic foods and niche products such as saffron, walnut oil and aromatic plants. For the purpose of this document, agribusiness and its allied sectors include agriculture, horticulture, floriculture, livestock and dairy development, as well as various subsector opportunities such as cold storage and mineral water bottle plants. The Department of Agriculture in Kashmir aims to help farmers and agriculture entrepreneurs through advances in content knowledge, professional development and greater access to domestic and export markets. Farmers will not only be provided with incentive packages and information regarding cropping alternative schemes, but they will also receive appropriate incentives and information regarding diversified, value-added agriculture systems. In addition to production and cultivation of local vegetation and fisheries, youth entrepreneurs should consider processing, packaging and branding as highly lucrative enterprises in agribusiness. The vast availability of land, human labour and access to raw materials combined with cost-effectiveness further enhances the socio-economic returns on investment. Horticulture also serves as a high contributing industry to the states economy. Out of the total area of horticulture in the state, 90 percent is concentrated in the valley due to its suitable climate. With annual turnover of 75 million USD, this sector is the biggest source of income in the states economy next to agriculture. Additionally, horticulture is gaining momemtum in the state as revealed by its 7-8% contribution to the states GDP. Almost 45% of economic returns in the agricultural sector is accounted for by horticulture.4 The agro-climatic conditions prove highly suitable for growth and development fruits and various wild herbs. Local soil is deep and rich in organic matter and access to human resources for farm labour is amply abundant. The horticulture industry also serves as a great advantage to the state due to its monopoly on walnuts, almonds, pears, cherries, hazelnuts, pecan-nuts, strawberries and kiwi fruits. However, according to the J&K Planning Commission, Kashmiri horticulturalists have limited their industry to merely supplying primary products rather than diversifying their market through value addition. Juice concentrate and jams, processing units for saffron and dry fruits like almonds and walnuts also offer abundant opportunities for entrepreneurship. Export potential for processed fruits, walnut products, honey, and etc., will increase through consciencious use of fertilizers for quality production and disease protection. By utilizing modern technology for packaging and cold storage, youth entrepreneurs can transform the Kashmir horticulture industry. Floriculture provides an overall market size in Kashmir of US$2 million annually and supplies flowers and products to both domestic and international markets. According to the J&K Economic Survey for 2010-11, an area of 250 hectares is under commercial floriculture production in Kashmir. Annual turnover from floral trade which was just 1 crore during 1998-1999 has reached to a level of 10 crores during 2009-2010. In addition to centrally sponsored schemes issued from the Government of J&K, the J&K Bank also offers the JK Bank Commercial Floriculture Finance composite term loan in order to provide adequate and need based financial assistance for
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Jammu and Kashmir Economic Survey, (Directorate of Economics and Statistics, Governemnt of Jammu and Kashmir), 2010-11.

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commercial cultivation of flowers5. Similar to horticulture, aspiring entrepreneurs will benefit from value addition opportunities in the floriculture sector. In addition to cut flowers, foliage and bulbs distribution, processing of medicinal and aromatic plants for oils and handsoaps adheres to a high national and international export market. Livestock is another fast growing sector making great progress in the Kashmir economy. As per provisional estimates of the 18th livestock census in 2007, the total livestock population in the state has increased from 98.99 lakh in 2003 to 104.73 lakh in 2007, registering an increase of 5.8% 6. The J&K Department of Animal Husbandry offers centrally sponsored sector schemes such as: the rural backyard poulty development scheme, livestock health and disease control, and the venture capital fund/dairy entrepreneurship development scheme.7 Youth entrepreneurs should again consider value addition of processing and packaging for livestock and dairy enterprises. From packaged frozen meats to leather tanning, startup businesses in the livestock and dairy sector hold vast potential for domestic and export growth in Kashmir. The Agriculture Department, Government of J&K offers several centrally sponsored schemes such as the Technology Mission (TM) and the Rashtriya Krishi Vikas Yojana (RKVY) to provide greater incentives, training and assistance for upcoming entrepreneurs. Additionally, J&K Bank also offers a list of specialized finance schemes such as the All Purpose Agri-term Loan in order to help kickstart the careers of youth entrepreneurs. These opportunities will be discussed in greater detail througout the booklet; however, entrepreneurs are encouraged to consult these institutions for further information.

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J&K Bank, http://www.jkbank.net/specialisedLoans.php#CFF IBID 7 http://www.jkanimalhusbandry.net/schemes.htm

13 Potato Cultivation
Market Opportunity Geographical Location Potential Market Size Potato Cultivation Rural areas Kashmir market Rs. 182 crore8 National market Rs. 34,320 crore9 International market Rs. 5,555,750 crore10 Key Customer Segments Local consumers, national and international traders and wholesalers. Advantage Kashmir High altitude regions and the deep, rich soil of Kashmir offer the perfect agro-climatic conditions for potato cultivation. The state holds a large land area under 5000-8000 feet altitude which proves favourable for potato cultivation. The potato consumption in Kashmir has grown by 850% over the past 40 years3. As a response to this growing demand, the Kashmir Valley produced over 28,000 tonnes of potatoes in 2008-09. Approximately 2.5% of the total production (500 tonnes) is exported to other states of India. In order to maximise potential profit, entrepreneurs should consult the Department of Agriculture which offers training and advice for potato farmers. By utilising available incentives for potato cultivation, aspiring entrepreneurs hold the potential to increase level of outputs. The agriculture department has dedicated field extension officers to provide technical support to the farmers in addition to providing subsidised high breed variety seed. The present domestic production caters for 17% of the total demand, the rest is met by imports from neighbouring states11. Therefore, entrepreneurs can reduce the outflow of capital from the state by enhancing internal productivity. News Links J&K sees huge potential for potato farming, Business Standard, 2010 http://www.business-standard.com/india/news/jk-sees-hugepotential-for-potato-farming/98771/on

Indian average consumption 26 kg per person (Bengal Launches Campaign to Increase Potato Consumption, Financial Express, 2008 http://www.financialexpress.com/news/bengal-launches-campaign-to-increase-potato-consumption/353771/ ) multiplied by 7,000,000 Kashmir population (Census of India, 2011) multiplied by local market cost Rs. 10 per kg (Mercy Corps Seeding Value Chain Assessment, 2009) 9 Indian average consumption 26 kg per person (IBID) multiplied by Indian population 120 crore, multiplied by Rs. 11 average price per Kg in India ( Potato farmers willing to burn produce, angry over low prices, Times of India, 2011, http://articles.timesofindia.indiatimes.com/2011-12-15/india/30519547_1_potato-farmers-wheat-and-paddy-bhartiya-kisan-union) 10 International per capita consumption 31.3 Kg (Potato world, International year of the Potato, 2008, http://www.potato2008.org/en/world/index.html) , multiplied by 7.1 billion population, international price per kg of potato Rs.25 (Sabir, Ismat, Export Potential of Potatoes, Daily Times, 2011, http://www.dailytimes.com.pk/default.asp?page=2011\02\16\story_16-22011_pg5_16) 3 Yaden, Janice, Chipping in to help Indias Farmers Grow, (Mercy Corps website), 2011 http://www.mercycorps.org/countries/india/24876 11 Mercy Corps Kashmirs Potato value chain assessment document, 2009

14 Bioplastic from Potatoes


Market Opportunity Bioplastic from Potatoes

Geographical Location Rural areas Potential Market Size Local market Rs. 16.71 crore12
National market Rs. 217,637.5 crore13 International market Rs. 2,247.3 crore14

Key Customer Segments Local retail shops, departmental stores and other commercial establishments Advantage Kashmir A market research study conducted by Freedonia estimates that by 2013 Asia
will become the world leader in bioplastics production at an annual growth rate of 39.1%15. Since the government ban of polythene use in the region, the need for environment friendly alternative solutions is rising. As a result, in 2009, the J&K chief minister announced a joint venture between J&K Agro Industries Development Corp. and EARTHSOUL India Private Ltd. to make J&K the first state in India to possess a Bioplastics Manufacturing Unit. The facility would be manufacturing flowerpots and trays for floriculture, carry bags for all shopping applications, outer packaging material for foodstuff and meats, etc, bin liners for hotels and clubs. These products have a huge market in the country and abroad.16 However, as of 2010, the project has not been initiated. There is a growing need for bioplastics manufacturing in the valley since these products degrade in six months and will gradually dissolve in soil and water without leaving any toxic effect17. Due to high levels of access to raw materials of potatoes in the valley, bioplastics entrepreneurship ensures maximised outputs in response to an increasing demand in the local and national community. The entire value added chain involves: agriculture (cultivation of renewable raw materials, use of products in packaging film); biotechnology, chemical and plastic-producing industries; plastics-processing industry, manufacturing of semi-finished and finished products; sales and marketing; brandowners and users in food and non-food sectors; disposal and recovery systems18.

News Links J&K to lead India in Manufacturing Bio-plastics Ground Report Online, 2009
http://www.groundreport.com/Media_and_Tech/J-K-to-be-leader-in-India-toproduce-of-bio-plasti_2/2904939

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J&K Bioplastics Manufacturing Unit capacity 960 MT annual multiplied by average global price Rs. 174.11/kg (Rs. 174,110/MT) ( Sustainable Materials, Altprofits: Profiting from the Alternative Energy Revolution, http://www.altprofits.com/ref/ct/ctv/sustainable_materials.html) 13 Annual consumption 12.5 million tonnes plastic 2010 multiplied by average global price of bioplastics Rs. 174,111/MT 14 The Future of Bioplastics for Packaging to 2020, Pira International Market Intelligence Report, 2010 15 Green Report: Bioplastics Industry Emerges, Thomas White: Global Investing, 2010, http://www.thomaswhite.com/explore-theworld/green-report/2010/bioplastics-industry-emerges.aspx 16 Bioplastics production in India, Bio-Pol Blog, http://biopol.free.fr/index.php/bioplastics-production-in-india/ 17 Bioplastic Plant for JK Grounded Greater Kashmir, 2010 http://www.greaterkashmir.com/news/2011/Jul/3/bio-plastic-plant-for-jk-grounded-39.asp 18 Sustainable Materials, Altprofits: Profiting from the Alternative Energy Revolution, http://www.altprofits.com/ref/ct/ctv/sustainable_materials.html

15 Fresh-cut French Fries


Market Opportunity Fresh-cut French Fries

Geographical Location Rural areas Potential Market Size Local market Rs. 22,092 crore19 National market Rs. 381,876 crore20 International market Rs. 11,024,539 crore21 Key Customer Segments Local consumers, restaurants, food courts and traders Advantage Kashmir Youth entrepreneurs benefit from this market opportunity due to the fact that the raw material for french fries is locally produced and readily available at cheap prices. The annual production of potatoes in Kashmir is 27,200 metric tonnes of table potato22 with the average price of Rs. 10 per kg of potato23. Local entrepreneurs will benefit from this value addition enterprise of potato processing due to access to raw materials, availability of human labour, high market demand as well as training, incentives and schemes provided by the government and J&K Bank. Additionally, entrepreneurs benefit from low levels of competition. Currently, local restaurants and markets are importing frozen potato french fries; however, this import carries the disadvantage of additional costs. If french fries were produced locally, the state would benefit from reduced costs on imports and minimized outflow of state capital. The ability to freeze french fries also means that Kashmiri entrepreneurs can access the national and international market.

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The average global per capita consumption of French fries is 26.3 kg per annum (Vegetable Consumption Away from home on the rise, by Gary Lucier, Amber Waves, http://www.ers.usda.gov/amberwaves/september03/findings/VegetableConsumption.htm) The average price of French fries is INR 120 per kilogram (Potato frozen French fries- Domestic Market, Global Agrisystem, http://www.mpstateagro.nic.in/Project%20Reports%20pdf/POTATO%20FROZEN%20FRENCH%20FRIES.pdf) The population of Kashmir is 70000000 20 The average price of French fries is INR 120 per kilogram (Potato frozen French fries- Domestic Market, Global Agrisystem, http://www.mpstateagro.nic.in/Project%20Reports%20pdf/POTATO%20FROZEN%20FRENCH%20FRIES.pdf) The average global per capita consumption of French fries is 26.3 kg per annum. (Vegetable Consumption Away from home on the rise, by Gary Lucier, Amber Waves, http://www.ers.usda.gov/amberwaves/september03/findings/VegetableConsumption.htm) and the population size of India is 1.2 billion 21 The price of French fries is INR 590.4 per kg (The cost of French fries and other junk food, For wallet and waistline, by Libby Kane, Dated: August 11 2010, Learn Vest) The average global per capita consumption of French fries is 26.3 kg (Vegetable Consumption Away from home on the rise, by Gary Lucier, Amber Waves, http://www.ers.usda.gov/amberwaves/september03/findings/VegetableConsumption.htm) and the world population is 7.1 billion 22 Potato seed production in valley, http://www.diragrikmr.nic.in/Potatodev.pdf 23 Mercy Corps Kashmirs Potato Value Chain assessment document, 2009

16 Potato Chips
Market Opportunity Geographical Location Potato Chips Rural areas

Potential Market Size Local market Rs. 770 crore24 National market Rs. 23,562 crore25 International market Rs. 1,048,102 crore26 Key Customer Segments Local retail shops and wholesalers and national traders Advantage Kashmir Youth entrepreneurs benefit from this market opportunity due to the fact that the raw material for potato chips is locally produced and readily available at cheap prices. The annual production of potatoes in Kashmir is 27,200 metric tonness of table potato27 with the average price of Rs. 10 per kg of potato28; additionally, J&K state imports potato chips worth 100 crore annually29. If french fries were produced locally, the state would benefit from reduced costs on imports and minimized outflow of state capital. The Entrepreneurship Development Institute (JKEDI) is ready to support aspiring entrepreneurs through training in planning and marketing30; the government and J&K Bank also offer trainings, incentives and financial schemes in order to encourage investment in this industry. Local entrepreneurs will also benefit from this value addition enterprise of potato production due to the availability of skilled human labour and the high market demand. News Links Kashmir Chips Call Potato Business http://www.potatobusiness.com/index.php?view=article&catid=1:latestnews&id=93:kashmir-chips-call

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Per capita consumption of potato chips is 0.5 kg per annum and the price of potato chips is INR 220 per kilogram (Potato Chips Making- Market potential, http://msmestartupkit.com/sites/default/files/knowledge_base/potato_chips.pdf) The population of Kashmir is 70000000 as per census 2011. 25 The potato chip market in India is 357 million euro (Kashmir chips call, Potato Business, http://www.potatobusiness.com/index.php?view=article&catid=1:latest-news&id=93:kashmir-chips-call) 26 The per capita consumption of potato chip is 6.71 kilograms annually (Agricultural Marketing Resource Center, Potato Profile, http://www.agmrc.org/commodities__products/vegetables/potato_profile.cfm ) The world population is 7100000000. The price of potato chips is INR 220 per kilogram. (Potato Chips Making- Market potential http://msmestartupkit.com/sites/default/files/knowledge_base/potato_chips.pdf) 27 Potato seed production in valley, http://www.diragrikmr.nic.in/Potatodev.pdf 28 Mercy Corps Kashmirs Potato Value Chain assessment document, 2009 29 Kashmir may soon have its own brand potato chips to serve the local market, Potato Pro, November 2008, http://www.potatopro.com/Lists/News/DispForm.aspx?List=813b91f5-f5b5-46ec-95e2-463829ed0100&id=2050 30 Kashmir chips call, Potato Business, November 2008, http://www.potatobusiness.com/index.php/component/content/article/1-latest-news/93-kashmir-chips-call

17 Potato Seeds
Market Opportunity Potato Seeds

Geographical Location Rural areas Potential Market Size Local market Rs. 1.00 crore31 National market Rs. 905.40 crore32 International market Rs. 96,638.65 crore33 Key Customer Segments Local and national potato farmers Advantage Kashmir Kashmir Valley currently produces 27,200,000 kg of edible potatoes annually which requires 4,100,000 kg of potato seeds34. According to an article in the Greater Kashmir, JK Can Become Hub of Potato Seed Tubers, the majority of the states land is under 5000-8000 feet altitude which provides favorable agro-climatic conditions for potato seed tubers. Therefore, aspiring entrepreneurs face great demand and easy access to raw materials due to the highly suitable Kashmir climate for potato seed tubers cultivation. Potato seed producers should also consider the advantages of packaging and exporting potato seeds due to high national and international market size demand. According to the J&K Economic Survey 2010-11, the state government has introduced the Seed Village Scheme in 2007-08 to enhance the seed replacement rate by 25% which includes crops like wheat, rice and potato. Under this scheme, the government provides quality, high yield variety seed to increase the productivity of the crops. For potatoes in Kashmir, the agriculture department has replaced about 18.5% of seed in 2011 and has the target to replace 25% in 201235 . News Links JK can become hub of potato seed tubers Greater Kashmir, 2010 http://www.greaterkashmir.com/news/2010/Jun/22/-jk-can-become-hub-ofpotato-seed-tubers--27.asp http://www.mercycorps.org/topics/rural?page=1

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The total production of potato seed production is 400000 Kgs (Potato farm yield record 4000 qtl production, Rising Kashmir, January 2012, http://www.risingkashmir.com/news/potato-farms-yield-record-4000-qntl-production-20886.aspx) multiplied by price per kg of potato seed Rs. 25 (Mercy Corps Kashmirs Seeding Entrepreneurship Proposal Document, Phoenix Fund) 32 India has total of 1810800 hectares of land under potato production (Potato area, production and productivity, All India, 2008-09, http://cpri.ernet.in/potatostatistics.html) the total potato seed requirement is 2000 kgs of potato seed per hectare (Potato CultivationPlanting, http://www.potato2008.org/en/potato/cultivation.html) which means the total demand for potato seed in India is 3621600000 Kgs per year, multiplied by price per Kg of potato seed Rs. 25 (Mercy Corps Kashmirs Seeding Entrepreneurship Proposal Document, Phoenix Fund) 33 The total production of potatoes in the world is 325.30 million tons -325300000000 kgs, (World Potato production, 2007, http://www.potato2008.org/en/world/index.html) cultivated on 19327731 hectares of land(World Potato production, 2007, http://www.potato2008.org/en/world/index.html , multiplied by the total potato seed requirement is 2000 kgs of potato seed per hectare (Potato Cultivation- Planting, http://www.potato2008.org/en/potato/cultivation.html) which means the total demand for potato seed globally is 38655462000 kgs, multiplied by price per kg of potato seed Rs. 25 (Mercy Corps Kashmirs Seeding Entrepreneurship Proposal Document, Phoenix Fund) 34 (Potato seed production in Kashmir valley, http://www.diragrikmr.nic.in/Potatodev.pdf) 35 (JK improving on seed replacement, August 2011, http://www.greaterkashmir.com/news/2011/Aug/24/-jk-improving-on-seedreplacement--18.asp)

18 Onion Cultivation
Market Opportunity Geographical Location Potential Market Size Onion Cultivation Rural areas Local market Rs. 161.28 crore36 National market Rs. 32,524.80 crore37 International market Rs. 48,510.04 crore38 Key Customer Segments Advantage Kashmir Local and national consumers, traders and wholesalers The total area of land under onion cultivation in Kashmir is 835 hectares with a production of 18,000 tonnes annually39. In addition to favourable climate conditions, aspiring entrepreneurs also benefit from the higher land area under vegetable cultivation (5000-8000 ft. altitude), ample availability of a skilled agriculture labour force, government support services, low cost inputs and high local and even national/international export demand. The state agriculture department has many schemes to support the cultivation of various crops these include the Soil Survey, Seed Analysis, Quality Control and Farmers Education and Training40; the government also provides centrally sponsored schemes like the National Agriculture Insurance Scheme, the Seed Village Scheme and Post Harvest Technology Management41 which favours cultivation of crops and development of the agriculture sector in J&K.

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per capita national onion consumption 7.68 Kgs annually (Household consumption of various goods and services in India, 2004-05, National Sample Survey Organisation, Government of India, Report # 509, http://mospi.nic.in/press_note_509_30april07.htm ), multiplied by the total population of Kashmir, 7000000, multiplied by the local price per kg of onion Rs. 30 (Aslam Faheem, Onion Prices stay sweet in JK, Greater Kashmir, 2010, http://www.greaterkashmir.com/news/2010/Dec/27/onion-prices-stay-sweet-in-jk-39.asp) 37 per capita national onion consumption 7.68 Kgs annually (Household consumption of various goods and services in India, 2004-05, National Sample Survey Organisation, Government of India, Report # 509, http://mospi.nic.in/press_note_509_30april07.htm) multiplied by total population of India, 1,21,01,93,422, multiplied by average national price per Kg of Onion Rs. 35(Gargi Parsai, Wholesale price of onions not reflected in retail market, The Hindu, January, 2011, http://www.thehindu.com/news/national/article1138086.ece) 38 per capita international consumption of onion is6.2kgs annually(The national onion association http://onions-usa.org/all-aboutonions/consumption) Multiplied by total world population 7.1 billion multiplied by average world price per Kg of Onion Rs 11.02 (The financial express , Feb 2011, http://www.financialexpress.com/news/price-cut-fails-to-fuel-onion-exports/765954/ ) 39 (Faheem AslamOnion prices stay sweet in JK, Greater Kashmir, December 2010, http://www.greaterkashmir.com/news/2010/Dec/27/onion-prices-stay-sweet-in-jk-39.asp) 40 (Schemes of the department, department of agriculture Kashmir division, http://diragrikmr.nic.in/schemes.html) 41 (Centrally sponsored schemes, http://diragrikmr.nic.in/seedVillage.html)

19 Branded Kashmiri Honey


Market Opportunity Geographical Location Potential Market Size Branded Kashmiri Honey Rural and urban areas Local market - Rs. 77 crore42 National market - Rs. 190 crore43 International market - Rs. 4,900 crore44 Key Customer Segments Advantage Kashmir Local, national and international consumers

There is a high demand for honey in local, regional and export markets. Also, Kashmir currently has limited production; therefore, low levels of competition prove to be a great advantage. Kashmir imports honey worth Rs. 8.6 million from other states45. As a result, local honey branding offers massive growth potential in local production which can successfully compete with imports due to reduced transport costs. In 2011, Kashmir local honey production was 24 tonnes46. Kashmir is a traditional beekeeping area due to its rich and diversified bee flora ideal for high quality honey production. Despite its potential, beekeeping has remained rudimentary and un-exploited in this area thus far. Honey businesses which follow Good Agriculture Practices (GAP) and Good Handling Practices (GHP) would have a major competititve advantage over other local producers and greater ability to export. Entrepreneurs should also consider value addition products such as beeswax, chapsticks, cosmetics products and candles.
The Secret Lives of Kashmirs Beekeepers Mercy Corps, 2010 http://www.mercycorps.org/inthenews/20805 Mercy Corps launches products under Bees for Business project Greater Kashmir, 2011 http://www.greaterkashmir.com/news/2011/Nov/19/mercy-corps-launchesproducts-under-bees-for-business-project-26.asp Honey Sweet Success, Kashmir Life, Vol 03, Issue 40, 2011
http://www.kashmirlife.net/index.php?option=com_content&view=article&id=2139:hon ey-sweet-success&catid=30:business&Itemid=173

News Links

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Calculation based on J&K State Census Department for 2011 that annual consumption is 50g per capita with population size of 7,000,000; additionally, the census stated that cost is 2.2 Rs per gram. Mercy Corps Kashmir Bees for Business Value Chain Assessment, 2009 - (MCK carried out a market survey under its Bees for Business pilot project to identify the demand and preference for local honey. About 90% of the respondents mentioned that they would prefer Kashmiri honey more than the outside brands and showed willingness to buy the locally produced honey at higher prices.) 44 IBID 45 IBID 46 Farooq, Shafat, 500% increase in honey production in 2011, Rising Kashmir, 17 Jan 2012
43

20 Mushroom Cultivation, Processing and Packaging


Market Opportunity Mushroom Cultivation, Processing and Packaging Geographical Location Rural areas Potential Market Size Local market Rs. 2.52 crore47 National market Rs. 136.12 crore48 International market Rs. 22,140 crore49 Key Customer Segments Local and national households, traders and wholesalers

Advantage Kashmir The government of J&K has identified mushroom cultivation as a key area of focus under the Rashtriya Krishi Vikas Yojana (National Agriculture Development Programme) scheme. Mushroom growers in Kashmir are supported by the government through the supply of quality seeds and the provision of technical training involved in cultivation.7 The Economic Survey 2010-11 also highlights the National Horticulture Technology Mission: Mini Mission II for the purpose of establishing an Integrated Mushroom Development Centre for mushroom production. Youth entrepreneurs will benefit from the governments current attention to this sector offered through helpful incentives, trainings and provision of resources. In 2009-10, 79,277 spawn bottles were distributed, 150,000 trays/polybags were laid and mushroom production was reported at 5051.61 quintals. Youth entrepreneurs also benefit from the fact that mushrooms prove easy to cultivate in the valley due to their ability to thrive on mule dung and paddy straw which are locally available raw materials. News Links Mushroom Villages Offer Employment to Women in Rural Kashmir Global Press Institute, 2011 http://www.globalpressinstitute.org/globalnews/asia/india/mushroom-villages-offer-employment-womenrural-kashmir

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The annual production of mushroom for the year 2011 was 5616 quintals. (Mir for mushroom cultivation units in every village , Rising Kashmir, Dec. 2011, http://www.risingkashmir.com/news/mir-for-mushroom-cultivation-units-in-every-village-18920.aspx) multiplied by the average price of 1 kg of mushroom RS. 45 ( Problems in Mushroom Farming, Agriculture and industry Survey, Feb 2006, http://www.agricultureinformation.com/mag/2006/02/problems-in-mushroom-farming/) 48 The per capita consumption of Mushroom in India is 25grams per annum ( Focus on Mushroom: A source of additional income, The Business Line , http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article2021529.ece) Multiplied by 1.21 billion population of India, multiplied by average price of 1 kg of mushroom, RS. 45( Problems in Mushroom Farming, Agriculture and industry Survey, Feb 2006, http://www.agricultureinformation.com/mag/2006/02/problems-in-mushroom-farming/) 49 the world market for the mushroom industry in 2005 was valued at over $45 billion. ( Shu Ting Chang, The World Mushroom Industry: Trends and Technological Development, International Journal of Medicinal Mushrooms, 2006) 7 Jammu and Kashmir Govt.s aid to mushroom cultivators yields bumper crop, (ThaIndian News online), 2010 http://www.thaindian.com/newsportal/india-news/jammu-and-kashmir-govts-aid-to-mushroom-cultivators-yields-bumpercrop_100311720.html#ixzz1LH4jeq9O

21 Supply, Processing and Grading of Saffron

Market Opportunity Supply, Processing and Grading of Saffron Geographical Location Potential Market Size Rural areas Local market Rs. 400 crore50 National market Rs. 193.80 crore51 International market Rs. 4100 crore52 Key Customer Local, national and international consumers, traders and wholesalers. Segments Advantage Kashmir Kashmir is known to produce the worlds best saffron. The region is the
leading cultivator of saffron in India and one of the few places in the world where saffron is grown in bulk. Saffron thrives in Kashmir due to its ability to thrive in soils heavily textured with silty clay loam53. Kashmirs favourable agro-climatic conditions, deep soil with excellent drainage and rich organic content provide entrepreneurs with easy access to raw materials and potential for enhanced productivity. Kashmiri saffron is known for its aroma and color in the market and is in high demand both nationally and internationally. In order to open up more export opportunities for Kashmiri saffron and to secure a higher price in the market, Kashmiri saffron needs to be processed and graded as per the needs, preferences and quality demanded in the export market. Cultivation of saffron is presently confined to Pulwama, Budgam, Srinagar and Doda districts. The government has established the National Mission on Saffron54 in order to boost development and ensure productivity. The area, production and productivity of saffron in J&K for 2009-10 was 3675 ha, 91.88 quintals and 2.5 kg/ha. Youth entrepreneurs benefit from high demand in local and export markets, easy access to raw materials, low levels of competition in the export market and low startup costs in relation to income generated returns.

News Links J&K to Get Saffron Park Soon, The Development Channel, 2011

http://www.developmentchannel.org/agriculture/agribusiness/2593-jak-to-getsaffron-park-soon National Saffron Mission to Revive Kashmir Saffron Northern Voices Online, 2010 http://nvonews.com/2010/12/31/national-saffron-mission-to-revive-kashmirsaffron/

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Paul, Rashid, Challenges to Saffron Cultivation and Industry in Kashmir- Government clueless on saffron production, KashmirForum, http://kashmirforumorg.blogspot.in/2010/01/challenges-to-saffron-cultivation-and.html The annual production of saffron in India is 6460 kgs (Giri, R.K., Attri, Verma, Siddhartha Singh,Saffron productivity and weather, Indian Meteorological Department, New Delhi, Central Institue of Temperate Horticulture, Srinagar, Jammu and Kashmir, http://www.indianmetsoc.com/Page40-47.pdf) multiplied by the price is saffron INR 300000 (Saffron price in Kashmir surge on low production and high demand, Andhra News, 2009, http://www.andhranews.net/India/2009/February/11-Saffron-price-89130.asp) 52 World Production of saffron is 205000 kg annually (Why Saffron, Crocus Bank Project, http://www.crocusbank.org/Index18En.htm) multiplied by the Global price of saffron INR 200000 per kilogram (High price of saffron in international market leaves Kashmir Valley farmers delighted, Andhra News, 2009, http://www.andhranews.net/India/2009/November/10-High-price-saffron-38710.asp) 53 Economic Survey 2010-11, Directorate of Economics and Statistics, Government of J&K, 2011 54 Progress Report under CSS National Mission on saffron http://diragrikmr.nic.in/saffron%20progress%20report.htm
51

22 Production of Vegetable Seeds


Market Opportunity Production of Vegetable Seeds Geographical Location Rural areas Potential Market Size Local market Rs. 15.40 crore55 National market Rs. 582.03 crore56 International market Rs. Rs. 19,680 crore57 Key Customer Segments Local and national vegetable growers and seed suppliers Advantage Kashmir The Ministry of Agriculture currently seeks to increase certified seed production in the state through provision of the Seed Village Scheme, which includes farm infrastructure development, seed treatment, and the creation of irrigation resources. Additionally, state agriculture universities are being consulted to develop short duration, high yielding varieties including hybrids while also focusing on the productivity of crops in areas faced with excessive rain58. In January 2012, the director of agriculture convened a meeting with progressive vegetable seed growers in order to identify feasible zones in the valley for quality seed production59. In the meantime, the Agriculture Department has agreed to make allowance for breeder, foundation and certified seed to enthusiastic growers. Incentives will be offered to seed growers under the Seed Act and Seed Certification Agency in order to encourage quality certified vegetable seed. The aim of this initiative is to boost the economic status and livelihoods of vegetable seed growers. Therefore, youth entrepreneurs pursuing a vegetable seed startup would benefit from the governments participation in the development of vegetable seed production and its overall concern for the industry.
Hybrid Seed Technology Key to Raise Vegetable Production Greater Kashmir,

News Links 2010

http://www.greaterkashmir.com/news/2010/Apr/6/hybrid-seed-technology-key-toraise-vegetable-production-34.asp

55

The average price of vegetable seeds is INR 1313 per kg (TNA AgriTech portal, Sale price of plants and allied products at TNAU sales centre, Prices of vegetable seeds grown in Kashmir are taken into consideration.) The export of vegetable seeds is 117300 kg annually. (National Conference on Agriculture for Rabi Campaign 2004-2005, http://www.google.co.in/url?sa=t&rct=j&q=vegetable+seeds+kashmir&source=web&cd=25&ved=0CIEBEBYwDjgK&url=http%3A%2F%2Fag ricoop.nic.in%2FRabi2004-05%2FJ%26K.ppt&ei=MwZLT5G4Fc_nrAeUr6GoDw&usg=AFQjCNHDuyxoI-qsMZ36tBFwqVKA8aPm2A) 56 The open pollinated seed market in India is $118.299 million (Vegetable Seed Industry in India-Vibrant and looking ahead, by Dr. N. Nanda, Uday Singh and Dr. O.P.Dutta, Deepak Fertilizers and Petrochemicals Corporation Limited, http://www.dfpcl.com/dfpcl/knowledge/Vegetableseed.asp) 57 The global vegetable seeds market is worth $4 billion (Annual Report 2010-Our Offer-Vegetables, Syngenta, http://annualreport2010.syngenta.com/en/our-offer/Vegetables.aspx) 58 Economic Survey 2010-11, Directorate of Economics and Statistics, Government of J&K, 2011 59 Agri Dept Promotes Vegetable Seed Production Greater Kashmir, 2012 http://www.greaterkashmir.com/news/2012/Jan/8/agri-deptt-promotes-veg-seed-prod-33.asp

23 Trout Farming and Processing (Smoked Trout)


Market Opportunity Trout Farming and Processing (Smoked Trout) Geographical Location Rural areas Potential Market Size Local market Rs. 3.38 crore60 National demand 9.74 million tonnes61 International market Rs. 501,840 crore62 Key Customer Segments Local, national consumers and exporters Advantage Kashmir According to Sher-e-Kashmir University of Agricultural Sciences and
Technology of Kashmir (SKUAST), the fishery sector serves as a crucial contributor to socio-economic development in Kashmir. In 2009-2010, fisheries contributed to 0.43% of the GSDP. The availability of raw materials in Kashmir provides ample opportunitiy for youth entrepreneurs to revolutionize this sector, particularly through trout farming and smoked trout for domestic consumption as well as for export potential. This market opportunity offers self-employment in rural areas which would improve the standards of living for fishing families, enhance the nutritional diets of local communities and accelerate rural development by expanding the local industry. The trout fish is in huge demand as Kashmir produces the best feed for the production of trout fish. The local production of trout has increased to 169 tonnes during 2009-1012. The length of 27,781 km of rivers/streams serves as a further advantage by supporting the farming of more than 400 lakh quintals of fish. Out of the total 27,781 km of area under fisheries, the state has only 0.07 lakh hectares area under reservoir13. The 11th year plan allotted Rs. 49.08 crore for the development of the fisheries sub sector with Rs. 12.38 crore spent by the government in 2010-11. Under the centrally sponsored government scheme for the welfare of fishermen, the government provides free insurance coverage to fishermen, Rs. 1 lakh paid to the beneficiarys family in case of death, Rs. 0.5 lakh for permanent disability while fishing, and low cost houses to houseless fishermen. As of 2010, 208 claims were settled and Rs. 67 lakh was distributed to beneficiaries63. Rearing Trout for Export Kashmir First, 2009 http://www.kashmirfirst.com/articles/other/091210-rearing-trout.htm

News Links

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production of trout fish was 169 tonnes during 2009-10 ( Economic survey 2010-11, Directorate of economics & Statistics, J&K ) Multiplied by INR 200, The rate of 1 kg of trout fish (Trout available at Sheikh Pora from today Greater Kashmir, Feb. 2012 http://www.greaterkashmir.com/news/2012/Feb/17/trout-available-at-sheikhpora-from-today-35.asp) 61 The projected India demand for fish by 2012 is 9.74 million tonne (Rajesh Ravi, Rising domestic demand for fish cuts into exports , The Financial Express, July 2011 http://www.financialexpress.com/news/rising-domestic-demand-for-fish-cuts-into-exports/814894/2) 62 Fish is one of the most traded food commodities worth US $ 102 Billion ( Mark Kinver, Global fish consumption hits record high, BBC News Feb. 2011, http://www.bbc.co.uk/news/science-environment-12334859) 12 Jammu and Kashmir Economic Survey, (Directorate of Economics and Statistics, Governemnt of Jammu and Kashmir), 2009-10 13 IBID 63 J&K Economic Survey 2010-11, Directorate of Economics and Statistics, Govt of J&K, 2011

24 Cut Flowers and Foliage


Market Opportunity Cut Flowers and Foliage Geographical Location Rural areas Potential Market Size Local market Rs. 295.2 crore64 National market Rs. 500 crore65 International market Rs. 20,172 crore66 Key Customer Segments Local households, hotels, restaurants, gift shops, event management companies, etc.; export market also exists. Advantage Kashmir Temperate agro-climatic conditions in J&K prove highly suitable for growth
and development of various types of cut flowers. Cut flowers such as carnations, gladiolus, lillium, and marigolds which are produced in Kashmir now experience heavy demand in the country. The flowers are grown to meet domestic and export demand. The Valley also maintains the advantages of a wide availability of germ plasm, existence of wild flora appropriate for the dehydrated flower market, low production costs and high availability of sufficient, skilled human labour67. Annual turnover from floral trade reached Rs. 10 crore in 2009-10 with 250 hectares of land under flower cultivation. Registration with the Department of Floriculture entitles flower growers to benefits under various schemes like the Rashtriya Krishi Vikas Yojana (RKVY) and the Technology Mission (TM). Under RKVY, in Anantnag district, the government is providing Rs. 13,000-26,000 for unemployed youth who have 0.5-49.5 hectares of land for flower cultivation68. The department provides free seeds as well. Under both schemes, many floral nurseries and polygreen houses have been constructed for further development of the industry in the past three years. Cold storage walk-in units at a cost of Rs. 4 crore are also being established at the Tulip Garden and even Srinagar airport for all cut flowers in order to boost cut flower production, increase sales and to contribute to the regulation of market supply as per demand to guarantee greater returns to producers.

News Links Kashmiri Youth Turning to Floriculture One India News, 2010
http://news.oneindia.in/2010/04/19/kashmiriyouths-turningtofloriculture.html

64

The local market of cut flowers in Kashmir is around $6 million (Flower power for Kashmiri Youth, by Athar Parvez, New Agriculturist, March 2011, http://www.new-ag.info/en/focus/focusItem.php?a=1907) 65 The production of flowers is estimated to be nearly 300,000 metric tonnes of loose flowers and over 500 million cut flowers with stem. (Cut Flowers production in India, by Narendra K Dadlani, http://www.fao.org/docrep/005/ac452e/ac452e04.htm) The average price of cut flowers is INR 10 per flower (IBID) 66 Total import/export trade of cut flowers in the world is estimated at US $ 4100 million (Export of Cut flowers from India- World Trade, India: Agricultural Knowledge by India Agronet, Agri-Knowledge, Agricultural marketing, http://www.indiaagronet.com/indiaagronet/Agri_marketing/contents/Export%20of%20cut.htm) 67 Economic Survey 2010-11, Directorate of Economics and Statistics, J&K Government, 2011 68 Kashmiri Youth Turning to Floriculture One India News, 2010 http://news.oneindia.in/2010/04/19/kashmiriyouths-turning-tofloriculture.html

25 Flower Seeds/Lillium and Tulip Bulbs


Market Opportunity Flower Seeds/Lillium and Tulip Bulbs

Geographical Location Rural areas Potential Market Size Local market Rs. 2.5 crore69 National market Rs. 1,000 crore70 International market Rs. 4,920 crore71 Key Customer Segments Local households and flower growers, floriculture deparments and flower
exporters

Advantage Kashmir In recent years, the state of J&K has made great efforts to revive the floriculture industry and beauty of the gardens originally established by the Mughal Kings. Concentration has been focused primarily on the cultivation of tulip bulbs and cut flowers in the region in an effort to disband Hollands monopoly on the flower72. According to the Economic Survey 2010-11, the state holds vast potential for seeds and bulb production due to favourable agro-climatic conditions, low production costs and high availability of skilled, human labour. Under the floriculture departments Technology Mission scheme (TM), 50,000 lillium/tulip bulbs were provided to selected commercial flower growers. Also under this scheme, the Model Floriculture Centre at Nuner was developed in 2006 for lillium bulb production, additional assistance to growers and increased access to resources. The bulbs produced at the centre are being distributed among commercial growers. The state also offers trainings for potential growers in an effort to establish public-private partnerships for increases in pre and post-harvest production in the state. Youth entrepreneurs would benefit from pursuit of businesses in flower seeds and lillium bulbs due to the governments current development and training provided in the sector. With the aid of incentives and low production costs, this venture proves highly profitable due to the growing demand in the local and export markets. News Links Jammu and Kashmir Update, 2012,
High-tech poly houses being used to boost tulip production in Kashmir, http://jammuandkashmirupdate.com/news/newsdetail%20459.html Trying to become a tulip hub, J&K seeks public-private partnership, Floriculture Today http://floriculturetoday.in/Tulip-in-Jammu-Kashmirfloriculture.html

69 70

Flowers Market on boom in Kashmir, PRLOG, http://www.prlog.org/10568369-flowers-market-on-boom-in-kashmir.html Indias domestic flower market expected to reach Rs. 10,000 crore,The Indian Express, http://www.indianexpress.com/news/indias-domestic-flower-market-expected-to/365683/ 71 http://media.wiley.com/product_data/excerpt/06/04705052/0470505206.pdf 72 Economic Survey 2010-11, Jammu and Kashmir Directorate of Economics and Statistics, Government of J&K, 2011

26 Geranium Oil
Market Opportunity Geranium Oil Geographical Location Rural areas

Potential Market Size Local market - Rs. 0.0195 crore73 National market - Rs. 2 crore74 International market Rs. 304.43 crore75 Key Customer Segments Antiseptic, cosmetic, herbal companies local and national level Advantage Kashmir Kashmir Valley produces Rose Geranium, which is a unique flower species known worldwide76. The cultivation of geranium in Kashmir is highly favourable due to the availability of a suitable temperate climate, rich soil and availability of land cultivation. Entrepreneurs will also benefit from low levels of competition in geranium oil production in the state, low input costs and high demand in local, national and international markets. Entrepreneurs should also focus on opportunities for value addition, utilizing the oil for medicines, cosmetics and luxury soaps. In addition, expert guidance and institutional support is provided by SKUAST, the Department of Floriculture, the Department of Agriculture and the IIIM (Indian Institute of Integrative Medicine) through provision of trainings and incentives for the development of this industry. The Department of Horticulture, specifically, has many promotional schemes and incentives for aspiring entrepreneurs to cultivate medicinal and aromatic plants in Kashmir. News Links Sweet Smell of Success New Agriculturalist, 2011 http://www.new-ag.info/en/focus/focusItem.php?a=2014 Cultivating an Aromatic Industry Kashmir Life, Vol. 2, Issue 5 http://kashmirlife.net/index.php?option=com_content&view=article&i d=666%3Acultivating-an-aromatic-industry&Itemid=175

73 74

Annual production in Kashmir is 12-14 kg multiplied by annual price Rs. 15,000 per kg Annual production in India is 5000 kg multiplied by annual price Rs 4000 per kg (Primary Information Services for Small Industries Service Enterprises and Business Entrepreneurs, http://informer11.tripod.com/geranium.htm) 75 Annual global production is 750,000 kg (Essential Oil Quick Details Geranium, http://www.alibaba.com/productfree/107846296/Geranium_Oil.html) multiplied by the global price average between $55-110 per kg 76 Sweet Smell of Success New Agriculturalist, 2011 http://www.new-ag.info/en/focus/focusItem.php?a=2014

27 Lavender Oil
Market Opportunity Lavender Oil Geographical Location Rural areas Potential Market Size Local market - Rs. 1.125 crore77 National market Rs. 3.75 crore78 International market Rs. 59.04 crore79 Key Customer Segments Perfume, deodorant, room freshener manufacturers and other such scented producers at local and national levels Advantage Kashmir The geography and climate in Kashmir is highly favourable for
the cultivation of lavender plants. The lavender farms are established usually on fallow (or unseeded) land and Kashmir has large areas of fallow land available which involves reduced input cost for lavender seedlings. Lavender is a versatile cash crop from the temperate region of Kashmir and can be integrated with apple as an intercrop, which can increase the production per unit, resulting in better economic productivity. Lavender is being sold in the international market, but must maintain its quality through appropriate cultivation and processing. It has increasing demand in local and national markets as well. Entrepreneurs should also focus on opportunities for value addition, utilizing the oil for medicines, cosmetics and luxury soaps. It also has substantial application in alternative health care practices of aromatherapy. Total herbage yield is 60-70 qt/hac and oil recovery on plant scale is 1-1.6%. Oil yield in is 60-70 kg/hac with retail price of 2500 INR per kg. The net return per hectare is 1.15 lakh INR respectively80. The production value of lavender flower is Rs.15 crore81. Expert guidance and facilities are easily available from reputed institutes like IIIM (Indian Institute of Integrative Medicine), SKUAST, the Department of Floriculture, Department of Agriculture. The Department of Horticulture offers many schemes and subsidies for aspiring entrepreneurs for starting a cultivation of medical and aromatic plants.

News Links Facing Climate Change with Flower Power Inter Press Service News, 2011
http://ipsnews.net/news.asp?idnews=105271

77

Annual production 4000-5000 kg (Cultivating an Aromatic Industry, Kashmir Life Vol 2, Issue 15, http://kashmirlife.net/index.php?option=com_content&view=article&id=666%3Acultivating-an-aromatic-industry&Itemid=175) multiplied by the local price Rs 2500 per kg (Manzoor, Ovais and Sheikh, Muzammil Ahmed, Least Explored Economy Medicinal and Aromatic Plants of Kashmir, The Greater Kashmir, 2012 http://www.greaterkashmir.com/news/2012/Jan/9/least-explored-economy-12.asp) 78 Annual production India 15,000 kg multiplied by price of Rs. 2500 per kg (IBID Cultivating an Aromatic Industry) 79 Annual global production is 200,000 kg multiplied by global price average Rs 2952 per kg (Bienvenu, Fred, Agriculture Notes, Lavender Growing for Oil Production World Distribution and Production Areas, Ovens Research Station http://platypuscountry.org.au/fileadmin/bombala/registrations/business/Lavender/Growinglavenderforoil.pdf ) 80 Cultivation of Aromatic and Medicinal plants, https://docs.google.com/viewer?a=v&q=cache:WDbqmV94kbEJ:www.csir.res.in/csir/external/heads/aboutcsir/announcements/ngo/csir800_ aromatic.pdf+land+under+lavender+oil+cultivation+in+kashmir&hl=en&gl . 81 Greater Kashmir, http://www.greaterkashmir.com/news/2011/Feb/18/investment-key-to-boost-agriculture-mir-43.asp

28 Rose Oil
Market Opportunity Rose Oil Geographical Location Rural areas Potential Market Size Local market Rs. 0.28 crore82 National market Rs. 7 crore83 International market Rs. 149.96 crore84 Key Customer Segments Rose oil processors, perfume, deodorant, and room freshener manufacturers at local and national levels Advantage Kashmir The total rose flower yield is 35-40 quintals per hectare with oil yield of one kg per hectare; and the price per kg of rose oil is Rs. 225,00085. The cultivation of rose oil in Kashmir is highly favourable due to the availability of a suitable climate, rich soil and availability of cultivated land. Entrepreneurs also benefit from low levels of competition in rose oil production in the state, low input costs and high demand in local, national and international markets. Entrepreneurs should also focus on opportunities for value addition for the purpose of medicines, cosmetics, perfumes, flavourings and luxury soaps. Expert guidance and institutional support is offered for producers of aromatic oils by SKUAST, the Department of Floriculture, the Department of Agriculture and the IIIM (Indian Institute of Integrative Medicine), through trainings and incentives for the development of this industry. Also, the Department of Horticulture has many promotional schemes and incentives for aspiring entrepreneurs to cultivate medicinal and aromatic plants in Kashmir. News Links Valley Lags Behind in Commercial Rose Cultivation: Produces small quantity of rose oil despite huge markets Greater Kashmir, 2009 http://www.greaterkashmir.com/news/2009/Jul/11/valley-lagsbehind-in-commercial-rose-cultivation-87.asp

82

Annual Production is 10-15 kg (Shawl, A. and Adams, Robert, Rose Oil in Kashmiri India An Emerging Cash Crop Benefitting Industry and local Agribusiness, Juniperus, Vol. 34, 2009 - http://www.juniperus.org/AdamsPapersPDFFiles/223-2009PerfFragJ34Apr25ShawlAdamsRoseOil.pdf) multiplied by price Rs. 2.25 lakh per kg (Manzoor, Ovais and Sheikh, Muzammil Ahmed, Least Explored Economy Medicinal and Aromatic Plants of Kashmir, The Greater Kashmir, 2012 http://www.greaterkashmir.com/news/2012/Jan/9/leastexplored-economy-12.asp) 83 Annual production in India 200 kg (IBID Shawl, A and Adams, Robert) multiplied by average price 300,000-400,000 ((Cultivating an Aromatic Industry, Kashmir Life Vol 2, Issue 15, http://kashmirlife.net/index.php?option=com_content&view=article&id=666%3Acultivatingan-aromatic-industry&Itemid=175) 84 Annual global production 5000 kg (IBID Shawl, A and Adams, Robert) multiplied by average price Rs. 299,920 (Rose Oil Price in Bulgaria to Reach 5000 Euro per kilogram, The Sofia Echo, 2007 - http://sofiaecho.com/2007/06/26/650374_rose-oil-price-in-bulgaria-toreach-5000-euro-per-kilogram, http://coinmill.com/EUR_INR.html) 85 Cultivation of aromatic and medicinal plants genesis and extension, http://www.csir.res.in/csir/external/heads/aboutcsir/announcements/ngo/csir800_aromatic.pdf

29 Handcrafted Luxury Soaps


Market Opportunity Handcrafted Luxury Soaps

Geographical Location Rural areas Potential Market Size National market Rs. 72,816 crore86 International market Rs. 393,600 crore87 Key Customer Segments Local, national and international consumers; Kashmir hotels Advantage Kashmir Handcrafted luxury soaps are in demand. Kashmir imports these luxury soaps from outside the state; however, there is a good market opportunity for young entrepreneurs in Kashmir since all the raw materials required for manufacturing these soaps is available within the state. These raw materials include natural herbs, spices and clay, which are scented with pure essential oils such as lavender oil, rose oil, germanium oil and etcetera. Young entrepreneurs benefit from high market demands nationally and internationally; however, marketing of these products will require innovation and creativity in order to maximize potential for reaching the largest audience.

86

Indian market demand for soap and cleansers is $14.8 billion in 2012 (India: Consumer Goods and Retail Report, 2011 The Economist, http://www.eiu.com/index.asp?layout=ib3Article&article_id=1688635153&pubtypeid=1122462497&country_id=1570000157 &category_id=775133077) 87 The global market for soaps, 2000, The London School of Hygiene and Tropical Medicine, http://www.bvsde.paho.org/bvsacd/cd27/globalmarketsoap.pdf

30 Processing and Packaging of Walnuts and Almonds


Market Opportunity Processing and Packaging of Walnuts and Almonds

Geographical Location Rural and urban areas Potential Market Size Local walnut market Rs. 400 crore88 Local almond market Rs. 97.5 crore89 National walnut market Rs. 385.25 crore90 International walnut market Rs. 15,479.94 crore91 Key Customer Segments Local and national dry fruit processing units, retailers and export traders Advantage Kashmir Jammu & Kashmir is the sixth largest producer of walnut in the world and
serves as the largest producing state in India accounting for 92% of production at 126,000 metric tonnes in 2011. Additionally, the state produced 1,200 tonnes of almond92. Therefore, high production rates provide potential entrepreneurs with confirmation of market demand; however, greater capacity still exists for market expansion. Through value addition of processing and packaging walnuts and almonds, entrepreneurs will be able to expand their market to maximize export potential. According to the J&K Economic Survey 2010-11, the Department of Agriculture has recently introduced innovative techniques of budding and grafting for walnut cultivation which reduces the gestation period of the crop. Hi-tech greenhouses are also being used in Zakura and Siot, Rajouri for increased access to resources. Enrepreneurs will benefit from the training and information provided by the agriculture department in an effort to increase overall production and economic status in the state. Walnut and almond processing greatly benefits entrepreneurs living in hilly areas and can highly contribute to the economic status of the local community.

News Links India:

Walnut Production Up in Kashmir, Fresh http://www.freshplaza.com/news_detail.asp?id=87319

Plaza,

2011,

88

40000000 kg of walnuts are produced annually in Kashmir, The average price of walnuts is INR 100 per kg (Kashmir Walnut in great demands by the Indian markets, October 2010, Greater Kashmir) Total Market = 97.5 crores, Around 16,000 to 18,000 hectares of land is under almond cultivation, ( Sep 12 2008, The Indian Express http://www.indianexpress.com/news/almond-cracks-record/360311/), Production = 15000000 kg (Almond Cracks record, The Indian Express, http://www.indianexpress.com/news/almond-cracks-record/360311/) Price per Kg = INR 65 (MASOODI DRY FRUIT PROCESSINGS CENTRE, Tradeindia.com, http://www.tradeindia.com/fp89017/Kashmiri-Almond.html) 90 The total production of in-shell walnuts ranges from 32000 to 35000 metric tones per year i.e. an average of 33500000 kg (Walnut Inshell, Kashmir Walnut Group, http://www.kashmirwalnut.com/inshell_walnuts.htm) The national average price of walnuts rose to an average of INR 115 per kg (Walnut, http://www.business-standard.com/india/news/walnut-risesfresh-buying-support/16/46/97333/on) 91 The annual global production of walnuts was 1491152000 kg in 2004. (Walnuts- Juglans SPP- Production, http://fruit-crops.com/walnut/ ) The price of walnuts in 2010 was INR 103.812 per kg (Agricultural Marketing Resource Centre, English Walnuts profile, http://www.agmrc.org/commodities__products/nuts/english_walnuts_profile.cfm) 92 Jammu and Kashmir 2012, CII, http://www.cii.in/States.aspx?enc=5WcSaM0yzEfRFlFUNeIvYGPI9xL9HypQH+qrcmYEmb76eMXlnBGI054c+8rEqE7onHhlPNA7wHuBKby +wCam9A
89

31 Cultivation and Processing of Strawberry


Market Opportunity Geographical Location Cultivation and Processing of Strawberry Rural and urban areas

Potential Market Size

Local market Rs. 39.6 lakh93 National market Rs. 819.47 crore94 International market Rs. 370,620,000 crore95

Key Customer Segments

Local rural and urban consumers and fruit processing unit wholesalers and exporters According to the J&K Horticulture Department, strawberry fruit production produced a bumper yield in 2009 due to the advantage of timely rain. Though Kashmir is most famous for its apple fruit production, the state is emerging as a leader of strawberry production in India. The temperate agro-climate proves highly suitable to the necessary growth conditions for the fruit since the soil provides sufficient moisture and roots are able to spread out close to the surface. The Horticulture Department also encourages entrepreneurs to consider processing, packaging and marketing of strawberries through jams, jellies and juices production. In 2011, SKUAST established an organic agriculture programme in order to educate local farmers and fruit growers of the benefits of organic farming. The agro-university highly believes that organic certification will double the value of fruits in national and international markets96.
Sowing Fruitful Success, Kashmir Life Vol 03, Issue 22, 2011, http://www.kashmirlife.net/index.php?option=com_content&view=article& catid=30%3Abusiness&id=1830%3Asowing-fruitful-success&Itemid=173

Advantage Kashmir

News Links

93

Annual yield 36,000 kg (Sowing Fruitful Success, Kashmir Life, Vol 3, Issue 22, 2011 http://www.kashmirlife.net/index.php?option=com_content&view=article&catid=30%3Abusiness&id=1830%3Asowing-fruitfulsuccess&Itemid=173 ) multiplied by average price Rs. 110 per kg (India: Strawberry fields Boom, Price Dips to Rs. 100 a kg, Fresh Plaza, 2010 - http://www.freshplaza.com/news_detail.asp?id=57124) 94 Annual production India 22,500 kg per hectare (India: Crop Information by Agronet Strawberries, http://www.indiaagronet.com/indiaagronet/crop%20info/strawberry.htm) area under strawberry cultivation is 3311 hectares (Horticultural Statistics 2010 Hot Summer Hampers Open Field Horticulture, 2011 - http://www.maataloustilastot.fi/en/node/2132) average price Rs. 110 per kg (IBID India: Strawberry fields Boom) 95 Average annual consumption per person was 6000 kg (Tronstad, Russel, Evaluation of Market Size, University of Arizona http://ag.arizona.edu/arec/wemc/nichemarkets/2_MarketSize.pdf) average price Rs. 87 per kg (Geisler, Malinga Commodity Strawberry Profile, Agricultural Marketing Resource Centre, http://www.agmrc.org/commodities__products/fruits/strawberries/commodity_strawberry_profile.cfm) world population until 2011 is 7,100,000,000 96 Ehsan, Mir, Kashmirs Organic Farms: 32,000 Hectares and Growing, The Indian Express, 2011, http://www.jammukashmir.com/archives/archives2011/kashmir20111020d.html

32 Fruit Jams
Market Opportunity Fruit Jams

Geographical Location Urban areas Potential Market Size Local market Rs. 69.3 crore97 National market Rs. 11,979 crore98 International market Rs. 109,933.56 crore99 Key Customer Segments Local and national food processing units, wholesalers and export traders Advantage Kashmir Kashmir is very rich in production of fruits such as apple, pear, mulberry, cherry, strawberry and etcetera. The total production of fruits in the valley is equal to 1,373,948 MT. The fruits are easily available at relative low prices, which creates a good market opportunity for young entrepreneurs who seek value addition by manufacturing and distributing fruit jams. Due to a high shelf life of processed and packaged jams, entrepreneurs possess the ability to meet the high demands of national and international markets as well. The Horticulture Department encourages entrepreneurs to enhance local processing and packaging of fruit jams and jellies by offering training, incentives and schemes. News Links 2-month training programme on ACABC begins at SKUAST, Greater Kashmir, 2011, http://www.greaterkashmir.com/news/2011/Feb/2/2-monthtraining-programme-on-acabc-begins-at-skuast-18.asp

97

The global per capita consumption of fruit jams is 0.99 kg per annum (Jam and Jelly guide, Armadillo Pepper.com http://www.armadillopeppers.com/Jam_and_Jelly_Guide.html) The average selling price is INR 100 per kg (Jam and JellyProfitability calculations, http://mofpi.nic.in/images/pdf/fruits/jam_jelly.pdf) The population of Kashmir is 7000000 as per census 2011 98 The average global per capita consumption of fruit jams is 0.99 kg per annum (Jam and Jelly guide, Armadillo Pepper.com http://www.armadillopeppers.com/Jam_and_Jelly_Guide.html) The average selling price is INR 100 per kg. (Jam and Jelly- Profitability calculations, http://mofpi.nic.in/images/pdf/fruits/jam_jelly.pdf) Population of India is 1210000000 as per census 2011 99 The global per capita consumption of fruit jams is 0.99 kg per annum. (Jam and Jelly guide, Armadillo Pepper.com http://www.armadillopeppers.com/Jam_and_Jelly_Guide.html) The world population is 7100000000, The average price for fruit jams is INR 156.40 (Interdisciplinary Journal of contemporary research in Business,Estimation for demand for processed fruit and vegetable products in professor colony, by Bibi Taiba, Dr. Munir Khan, Muhammad Nazir, Muhammad Sajjad, Dr. Dawood Jan, Dr. Abbas Ullah Jan, December 11, Volume 3 No. 8)

33 Kashmiri Pickles
Market Opportunity Kashmiri Pickles

Geographical Location Rural and urban areas Potential Market Size Local market Rs. 16 crore100 National market (pickles) Rs. 307.2 crore101 Key Customer Segments Local and national consumers Advantage Kashmir Kashmirs pickle industry finds users in both local and national markets. Youth entrepreneurs should employ innovative and creative marketing strategies to expand export potential. Access to raw materials, availability of skilled human labour, low input costs in relation to market returns and low levels of competition in the valley prove to be strong advantages of producing and processing Kashmiri pickles. Aspiring entrepreneurs should consult government resources for training, incentives and schemes as well as J&K Bank schemes aimed at enhancing the development of this industry in the state. News Links Investment Opportunity Profile for Pickle Production, Processing and Packaging Plant in NWFP, Community Based Livelihoods Recovery Program (CBLRP) for Earthquake Affected Areas of Azad Jammu and Kashmir and NWFP, 2007 http://www.unido.org/fileadmin/user_media/UNIDO_Worldwide /Offices/UNIDO_Offices/Pakistan/pickling_plant.pdf

100

The average annual consumption of pickles in India is 2 kgs per household (Pickles and Chutney, Ministry of food processing India, http://mofpi.nic.in/images/pdf/fruits/pickles_chutney.pdf) multiplied average price per kg of kashmiri pickle is Rs. 80 ( Unrest brings dip in Kashmirs pickle business, August 2010 http://news.oneindia.in/2010/08/20/unrestbringsdip-in-kashmirs-picklebusiness.html) multiplied by total households in Kashmir 1000000. 101 Average annual consumption of pickles is 2 kgs per year(Pickles and Chutney, Ministry of food processing India, http://mofpi.nic.in/images/pdf/fruits/pickles_chutney.pdf) multiplied by number of households in India 19, 20,00,000 (census of India, 2001) multiplied by average cost of one Kg of pickle Rs.80 (Pickles and Chutney, Ministry of food processing India, http://mofpi.nic.in/images/pdf/fruits/pickles_chutney.pdf)

34 Canned Wazwan
Market Opportunity Canned Wazwan

Geographical Location Urban areas Potential Market Size Projected export value Rs. 5000 crore102

Key Customer Segments Local, national and international consumers, processors and suppliers Advantage Kashmir Kashmiri wazwan is a highly celebrated local tradition. Wazwan recipes preferred over generations are now available in cans, expanding the market potential and meeting national and even international demands. Youth entrepreneurs benefit from local recipe knowledge, availability of skilled human labour and low levels of competition as current production capacity is not reaching its full potential. Easy and ample access to raw materials of mutton in Kashmir also proves a strong advantage for the production of canned wazwan, which includes up to 36 different types of this meat product. With a shelf life of three months, the canned wazwan business could be started with the support from the local government and the traders federation schemes. SIDCOs brand promotion schemes also provide incentives for local production, branding and development of the canned wazwan industry103. News Links A Vaswani, History in a can, 2012, http://www.midday.com/lifestyle/2012/feb/050212-History-in-a-can.htm

102

The projected export value of Kashmiri canned wazwan is Rs. 50 billion (Kashmiri wazwan available in packed tins, May 2009, http://news.oneindia.in/2009/05/06/kashmiriwazwan-available-in-packedtins.html) 103 J&K SIDCO Activities Brand Promotion, http://www.jksidco.org/activities.html#bra_pro

35 Butter and Ghee

Market Opportunity Butter and Ghee Geographical Location Rural areas

Potential Market Size Local market Rs. 542.959 crore104 National market Rs. 654 crore105 International market Rs. 521,520 crore106 Key Customer Segments Local and national households, hotels and restaurants, wholesalers and exporters Advantage Kashmir Kashmir possesses huge market potential of butter/ghee products due to high domestic demand for commercial use. The average consumption of butter/ghee per capita in Kashmir is 1.52 kg107. With a population of 7,000,000, this figure shows the high domestic demand for the butter/ghee manufacturing industry. Due to high dairy production in the state, youth entrepreneurs benefit from easily available access to raw materials for manufacturing. In order to reach the highest levels of productivity and to meet the greatest market potential, entrepreneurs should focus on wholesale retailing of this market opportunity. Raw materials, ample availability of skilled human labour and low levels of input costs enable production; therefore focus and attention should turn to innovative and creative marketing strategies. There are currently low levels of competition resulting in high imports of butter/ghee in Kashmir. Therefore, local production would reduce the outflow of capital from the state while improving the quality of local butter/ghee consumption. Opportunity for branding also exists with this market opportunity. Entrepreneurs should consult SIDCOs incentives and schemes offered for branding development.

104

Based on consumption - The per capita consumption of butter is 1.52kg annually (Butter Consumption Per Capita, FAS Online, http://www.fas.usda.gov/dlp2/circular/1997/97-07-dairy/butterpc.htm) multiplied by the price of butter Rs 270 per kilogram (Rising input cost pushes KMF to hike butter prices, Arun Iyer, Bangalore, The Times of India Publications, http://lite.epaper.timesofindia.com/mobile.aspx?article=yes&pageid=17&edlabel=ETBG&mydateHid=15-012010&pubname=&edname=&articleid=Ar01702&format=&publabel=ET) multiplied by the population of Kashmir is 70,000,00. 105 The national butter market is $133million (Food Processing in India, Processed Food scenario with respect to specific sectors, http://www.cci.in/pdf/surveys_reports/food-processing-india.pdf) 106 Based on Production - The production of butter in 2010 was 10,000,000,000 kgs (Research and Markets: The 2006 to 2015 Outlook for Global butter market: France, Russia and Germany are the top importers, Press Release: Research and market on 2012, Yahoo Finance, http://finance.yahoo.com/news/research-markets-2006-2015-outlook-154000778.html) multiplied by the Global price of butter is INR 521.52 per kilogram (International Dairy product prices-International butter prices,Understanding Dairy Markets, http://futuredev.aae.wisc.edu/data//weekly_values/by_area/1701) 107 Butter Consumption Per Capita, FAS Online, http://www.fas.usda.gov/dlp2/circular/1997/97-07-dairy/butterpc.htm)

36 Dairy Farming (Direct Consumption of Milk)


Market Opportunity Dairy Farming (Direct Consumption of Milk) Geographical Location Rural areas Potential Market Size Local market Rs. 2,391.5 crore108 National market Rs. 292,045.5 crore109 International market Rs. 1,637,118 crore110 Key Customer Segments Local urban and rural consumers, restaurants and hotels Advantage Kashmir Jammu & Kashmir currently imports the vast majority of milk from outside the state with the organised sector only handling 5 percent of the marketed surplus of milk. However, there is vast potential for domestic production. Youth entrepreneurs have a great opportunity to expand the local market through integration of dairy farming through processing and value-addition opportunities to boost milk production. These pursuits will also increase income and employment within local communities while upgrading the quality of milk production and distribution within the state111. In 2010, the Department of Animal Husbandry, Ministry of Agriculture modified the Dairy Entrepreneurship Development Scheme to have a target of 100 units per district with the unit cost at Rs 5 lakh and unit size of 10 animals. The aim of the scheme is to generate employment in the dairy sector in the state through enhanced productivity and development. News Links Milk Processing: Model Bankable Projects, National Bank for Agriculture and Rural Development, 2012, http://www.nabard.org/modelbankprojects/animal_milkprocess.asp

108

Daily consumption per capita is 360 grams (S.A. Wani and M.H. Wani, Marketing of Milk in Various Agro-Climatic Zones in J&K, University of Agriculture Sciences and Technology, 2010- http://ageconsearch.umn.edu/bitstream/92098/2/9-SA-Wani.pdf) multiplied by total population of 7,000,000 multiplied by average price Rs. 26 per kg (Div Com Reviews Price of Packed Milk with Manufacturers, Rising Kashmir, 2011, http://www.risingkashmir.com/news/div-com-reviews-prices-of-packed-milk-with-manufactures-15168.aspx ) 109 Daily consumption per capita is 214 (Live Stock and Indian Economy Dairy/Milk Production, http://www.fao.org/DOCREP/ARTICLE/AGRIPPA/657_en.htm) multiplied by population 1.21 billion multiplied by price Rs. 30.9 per kg (Cost of living in India, Prices in India, 2012 http://www.numbeo.com/cost-of-living/country_result.jsp?country=India&displayCurrency=INR 110 Annual consumption per capita average 108 kg (Current world total milk consumption per capita, 2007, http://chartsbin.com/view/1491 multiplied by world population of 7.1 billion, multiplied by price per kg Rs.21.35 (Milk Prices January 2011,LTO Nederland, 2011 http://www.milkprices.nl/Reviews/additional_201101.pdf 111 IBID S.A. Wani

37 Ice Cream
Market Opportunity Ice Cream

Geographical Location Rural and Urban areas Potential Market Size Local market Rs. 70 lakh112 National market Rs. Rs. 2000 crore113 International market Rs. 303,072 crore114 Key Customer Segments Local consumers, tourists, hotels and restaurants. Advantage Kashmir The main advantage for starting an ice cream enterprise in Kashmir is the easy availability of raw materials like milk, dry fruit, and etc. The milk production in Kashmir reached 846.25 thousand tonnes in 2009115. Ice cream industry growth is primarily due to strengthening of the distribution network and cold chain infrastructure. Ventures such as ice cream kiosks have been increasing annually116. Due to the effect of global warming, Kashmir endures hot summers in the last decade. Therefore the demand for ice creams as a refreshing treat is at its peak. There are many brands like Baskin Robbins117, Mother Dairy, Amul and etcetera who are already vending in Kashmir, but most of them are concentrated in Srinagar with presence in few other urban areas. Rural Kashmir serves as a great potential market for budding entrepreneurs. The only competition exists from local vendors, but if consumers are being provided with good quality ice cream at reasonable rates, then the entrepreneurs possesses huge potential for profit. Youth entrepreneurs pursuing ventures in ice cream production are also eligible for Government of India Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Upgradation of Small Scale Industries (SSI)118.

112

First ever Ice Cream factory in Kashmir Valley, One India News, 2008, http://news.oneindia.in/2008/06/24/ice-cream-factory-kashmir-1214294820.html Ice Cream Industry in India, by Aswathi Muralidharan, 2009 http://dare.co.in/opportunities/other-business-opportunities/ice-creamindustry-in-india.htm 114 IBID 115 http://www.greaterkashmir.com/news/2009/Feb/7/milk-production-in-valley-crosses-846-25-thousand-tons-6.asp 116 http://dare.co.in/opportunities/other-business-opportunities/ice-cream-industry-in-india.htm 117 http://www.risingkashmir.com/news/baskin-and-robbins-enters-kashmir-10562.aspx 118 http://dcmsme.gov.in/schemes/sccredit.htm
113

38 Feed for Poultry


Market Opportunity Feed for Poultry Geographical Location Rural and urban areas Potential Market Size Local market Rs. 8.32 crore119 National market Rs. 16,800 crore120 International market Rs. 2,16,630 crore121 Key Customer Segments Local poultry farms Advantage Kashmir The demand for feed is already present but is expected to increase significantly as the poultry, dairy and animal husbandry sectors demonstrated huge growth in recent years. Since feed imported from India imposes huge transport costs, local production will cut the cost of production for the end user and provide greater access and availability. Under a Centrally Sponsored Scheme for Fodder and Feed Development, the government of India has sent proposals for Rs. 923.70 lakh contributing to grassland development, hand-driven and power-driven chaffcutters, fodder block construction units and hay bailing machines122. The purpose of these proposals is to strengthen the overall production and cultivation of feed and fodder in the state. Due to favourable agro-climatic conditions, feed for poultry proves advantageous for Kashmiri entrepreneurs due to the high demand, cooperation with the animal husbandry department, government schemes and access to raw materials. News Links Setting up an Animal Feed Manufacturing Company: Basic Guide to Animal Feed
Production, Startupbizhub: Simply Business, http://www.startupbizhub.com/settingup-an-animal-feed-manufacturing-company.htm

119

An average of 10.95 million poultry birds are consumed in valley annually, (JK imports mutton, milk, poultry, worth Rs 16000 cr annually, Greater Kashmir, June 2007, http://www.greaterkashmir.com/news/2007/Jun/19/jk-imports-mutton-milk-poultry-worth-rs-16000cr-annually-44.asp) multiplied by price per kg of poultry feed is Rs.10 (P P Singh, Punjab poultry feed units stop supply to J&K, Business Standard, May 2006, http://www.business-standard.com/india/news/punjab-poultry-feed-units-stop-supply-to-jk/237711/) with an average consumption of 3.50 Kgs of feed for six weeks as finisher, (Poultry Nutrition, Central poultry development organisation northern region, http://cpdonrchd.gov.in/faq.htm#p1) 120 India consumes all the broiler chicken it produces and the total consumption is 3.2 million tons which is 3200000000 kgs (India Poultry and Products annual report 2011, December 2011, http://www.thepoultrysite.com/articles/2267/india-poultry-and-products-annual-report2011) multiplied by average price per kg of poultry feed Rs. 15 (Sandip Das Bumper corn crop in Bihar pulls down poultry feed prices, Financial express, May 2011, http://www.financialexpress.com/news/bumper-corn-crop-in-bihar-pulls-down-poultry-feed-prices/788566/) multiplied by average consumption of 3.50 kg feed for six weeks finisher broiler chicken. 121 The total production of poultry meat in eth world is 83 million tons in 2005 and may go upto 103. 2 million tons by 2015, (H W Windhorst, The dynamics of poultry meat production and trade present situation and perspectives, July 2007, http://www.zootecnicainternational.com/article-archive/marketing/542-thedynamics-of-poultry-meat-production-and-trade-present-situationandperspectives-.html) multiplied by average price per kg of poultry feed Rs. 26.10 (Poultry feed prices will rise more, March 2008, http://www.worldpoultry.net/news/poultry-feed-prices-will-increase-more-2327.html ) multiplied by feed consumption of 1.75 Kgs per kg of broiler chicken (Broiler performance criteria, http://www.venkys.com/vh-breeds/vencobb-broiler-broiler-breeder/vencobb-broilermanagement-guide/broiler-performance-criteria/ 122 Economic Survey 2010-11, Directorate of Economics and Statistics, Government of J&K, 2011

39 Poultry Farming (live chickens)

Market Opportunity Poultry Farming (live chickens) Geographical Location Rural areas Potential Market Size Local market Rs. 654.5 crore123 National market Rs. 4,442.4 crore124 International market Rs. 424,806.49 crore125 Key Customer Segments Local end consumers, restaurants and fast food shops Advantage Kashmir Poultry production has assumed importance as a major agro-based industry able to provide part-time/full-time employment to youth as well as providing the community with highly nutritious animal protein from quality poultry meat and eggs. The Poultry Development Organization in the state provides necessary technical guidance, health coverage and vaccination facilities to private poultry farmers. Additionally, the Department of Animal Husbandry, Ministry of Agriculture sanctioned the Rural Backyard Poultry Development Scheme at a cost of Rs. 778 lakh for 36,000 families. The implementation of this scheme began in 2010-11. Under the scheme, 45 birds are provided to the most vulnerable families in the state, free of cost with an additional Rs. 750 provided per beneficiary family for cages/night shelters126. Overall the department of animal husbandry aims to increase poultry development by encouraging private enterprises through technical guidance. It also wishes to provide fast and specific diagnosis of poultry diseases in order to reduce risk of loss for farmers. Therefore, youth entrepreneurs possess the opportunity to coordinate with government initiatives in order to expand the quality and quantity of poulty farming in Kashmir.

123

per capita consumption of poultry in Kashmir alone is 11 kg poultry meat per person per year(Bird Flu: New mechanism of circulation th and transmission found, July 2010,Poultry News, April 17 (TPC sources):, http://www.thepoultryconsultancy.com/index.php?option=com_content&view=article&id=70&Itemid=69 ) multiplied by total population of 7000000 multiplied by average price per kg of poultry meat Rs.85 (Rising prices pinching aam aadmi,Greater Kashmir, January 2012 http://www.greaterkashmir.com/news/2012/Jan/19/rising-prices-pinching-aam-admi-6.asp ) 124 annual per capita consumption of poultry in India is 633 grams(Poultry production, http://www.fao.org/DOCREP/ARTICLE/AGRIPPA/657_en-04.htm ) multiplied by total population of 1.21 billion multiplied by price per kg of poultry in India(chicken breast) is Rs. 58 (India Poultry industry suffering from low prices, high production cost,WattagNet.com,April 2011 http://www.wattagnet.com/India_poultry_industry_suffering_from_low_prices,_high_production_costs.html 125 Average per capita consumption of poultry annually at Global level is 5.9 kg per person per year(Poultry Production, http://www.fao.org/DOCREP/ARTICLE/AGRIPPA/657_en-04.htm ) multiplied by total world population of 7.1 billion multiplied by average price per kg of poultry meat at global level Rs.101.41(Poultry(chicken) Monthly price Indian Rupee Per pound, January 2012, http://www.indexmundi.com/commodities/?commodity=chicken&currency=inr ) 126 Economic Survey 2010-11, Directorate of Economics and Statistics, Government of J&K, 2011

40 Chicken Processing/(Frozen) Packaging


Market Opportunity Chicken Processing/(Frozen) Packaging

Geographical Location Urban areas Potential Market Size Local market Rs. 6.48 crore127 National market Rs. 288.96 crore128 Key Customer Segments Local consumers, retailers, national and international traders and wholesalers. Advantage Kashmir Kashmir consumes 30,000 poultry birds everyday imported from neighbouring states of Delhi, Haryana, Punjab, and Rajasthan129. Presently, Kashmir has one chicken processing unit (Shahi Murg) with a processing capacity of 1,000 birds130. Once hygenically processed, frozen/processed chickens will cater not only to the local market demand, but also, through quality sufficient cold storage units and transfers, will meet national demands as well. The Ministry of Food Processing Industries in India has planned various schemes to encourage development of the food processing industry131. However, youth entrepreneurs should also consult the local government schemes, such as the Venture Capital Scheme for Poultry, as well as J&K Bank specialized finance schemes related to branding and processing ventures.

127

As per the local chicken processing unit, average 750 birds processed daily in Kashmir (Nazia Akhter Shahi Murg gains good market in just four months, Greater Kashmir, 2010, http://www.greaterkashmir.com/news/2010/Jan/10/shahi-murggains-good-market-in-just-4-months-23.asp) means about 270,000 are processed in a year, multiplied by national price Rs. 240.80 per KG (Price Chicken Items, Meat Products of India Limited, http://www.meatproductsofindia.com/products.htm) 128 consumption is India is about 12,000,000 Kg annually (Indias Poultry Sector Development and Prospectus - Poultry marketing and Price Poultry Processing, Economic service research USDA, http://www.ers.usda.gov/publications/WRS0403/WRS0403f.pdf) multiplied by average price per kg in India is Rs.240.80 (Price Chicken Items, Meat Products of India Limited, http://www.meatproductsofindia.com/products.htm) 129 (Non veg consumption in Kashmir among highest, One India news, April 2007, http://news.oneindia.in/2007/04/03/non-veg-consumption-in-kashmir-among-highest-1175587860.html) 130 (Nazia Akhter, valley gets first chicken processing unit, Greater Kashmir, September 2009, http://www.greaterkashmir.com/news/2009/Sep/13/valley-gets-first-chicken-processing-unit-36.asp) 131 (Plan schemes, special component plan and tribal sub plan Plan schemes, http://mofpi.nic.in/ContentPage.aspx?CategoryId=1084)

41 Poultry Farming for Eggs


Market Opportunity Poultry Farming for Eggs

Geographical Location Rural areas Potential Market Size Local market Rs. 18.8 crore132 National market Rs. 11,434.5 crore133 International market Rs. 31,057.3 crore134 Key Customer Segments Local end consumers Advantage Kashmir There is a huge gap between supply and demand regarding poultry in Kashmir. Poultry worth Rs. 400 crore is imported annually from neighboring states135. The domestic supply gap is a lucrative opportunity for enterprising, educated youth to establish new poultry farms. Not only will this create thousands of jobs in the Valley, it will also help to reduce the capital outflow from the state. Under the Poultry Development Program of the J&K Animal Husbandry Department, the government supports poultry development by supplying chicks, technical assistance, vaccination facilities, marketing support to the poultry farms and other support in terms of training to entrepreneurs. This assistance is intended to help determined entrepreneurs to set up poultry units, feed supply and testing facilities136. Other schemes like the Rural Backyard Poultry Development scheme and the Venture Capital Fund for Poultry137 will also provide aid for entrepreneurs pursuing poultry farming for eggs.

132

Poultry department in Kashmir Technical Programme, J&K Animal Husbandry Department, http://www.jkanimalhusbandry.net/poultry.htm) 133 per capita consumption of eggs annually in India is 42, (Indian Agriculture Industry, 2006-07, http://mofpi.nic.in/images/File/FICCI%20Data/INDIAN%20FOOD%20PROCESSING%20INDUSTRY/INDIAN%20AGRICULTURE%20INDU STRY%20SOME%20FACTS.pdf) multiplied by total population India 1.21 billion, multiplied by price Rs.2.25 per unit, (India: prices of Eggs highest in 25 years, World Poultry.net, November 2008, http://www.worldpoultry.net/news/india-price-of-eggs-highest-in-25-years3315.html) 134 per capita consumption of eggs in the world is 8.57 per year, ( Global Poultry Trends _ Egg consumption in Asia grows faster than world average, January 2011, http://www.thepoultrysite.com/articles/1913/global-poultry-trends-egg-consumption-in-asia-grows-faster-thanworld-average) multiplied by world population of 7.1 billion, multiplied by price Rs. 61.25 per dozen (Our Basket price for 2008-2011, 2011, http://www.thepeoplehistory.com/pricebasket.html) 135 (Poultry in the valley, http://www.thepoultryconsultancy.com/index.php?option=com_content&view=article&id=59&Itemid=1) 136 (Poultry development programs , http://www.jkanimalhusbandry.net/poultry_development.htm) 137 (Schemes, http://www.jkanimalhusbandry.net/schemes.htm)

42 Sheep Farming (live sheep)


Market Opportunity Sheep Farming (live sheep) Geographical Location Rural areas

Potential Market Size Local market Rs. 1,206 crore138 National market Rs. 27,225 crore139 International market Rs. 8,967,960.3 crore140 Key Customer Segments Local end consumers, restaurants and suppliers

Advantage Kashmir Kashmir consumes 51,000 tonnes of mutton every year. Out of this annual consumption, 21,000 tonnes is imported from outside the state. Therefore, local entrepreneurs would benefit exponentially by replacing these imports with local produce. The demand for quality mutton is increasing in Kashmir due to acute awareness of the need for organic quality production. The agro-climatic conditions of the valley are highly suitable for sheep farming and good quality meat production and processing; however, the majority of imported mutton comes from Rajasthan which has some of the most arid deserts in the country that are not as suitable for quality meat production. Therefore, local sheep farming would highly benefit the Kashmir community by reducing costs on imports and increasing the quality of meat consumed.141 J&K Bank, in coordination with the Ministry of Agriculture, offers the Establishment of Mini Sheep Farms in the Private Sector Scheme. The aim of the scheme is to improve livelihoods and economic conditions of local sheep farming. The scheme also aims to increase production for farm sizes of 50 crossbred ewes, with two quality breeding rams to be provided free of cost by the Directorate of Sheep Husbandry for breeding coverage with a margin from borrowers of 15% of unit cost142.

138

Kashmiris love mutton, gulp 51,000 tonnes annually!, Greater Kashmir, 2011, http://www.greaterkashmir.com/news/2011/Jul/28/kashmiris-love-mutton-gulp-51-000-tonnes-annually--23.asp 139 Indian Market- Rs. 27225 crores per capita consumption of mutton in India is 0.9 kg/ year per person(Mutton Processing and Lamb Processing, Market Opportunities, https://docs.google.com/viewer?a=v&q=cache:A4cj_QxeZXcJ:www.mpstateagro.nic.in/Project%2520Reports%2520pdf/MUTTON%2520AN D%2520LAMB%2520PROCESSING.pdf+per+capita+consumption+of+mutton+in+india&hl=en&gl=in&pid=bl&srcid=ADGEESi4CuOr2d9Da yaqj8cddq5vOmONd3H0Y2uzKnt2tQdySy98py3KVO7Braxb8o2UaVcVuuIzYvmDly3wfnA3fL_a0_EQifLn9aAEaS_PCYKABIB0vWeNrU5UTFFazSuybWH8fg&sig=AHIEtbQXIG0hoBEx8b_xkNPZ-dv8NVV77w&pli=1 ) multiplied by total population of India which is 1.21 billion multiplied by price per kg of mutton which is Rs. 250(Mutton demand is rising in India, Economic Times ,November 2010, http://articles.economictimes.indiatimes.com/2010-11-30/news/27582761_1_goat-mutton-bakr-id ) 140 per capita consumption of mutton in World which is 46.6 kg per person per year(Current Worldwide Annual Meat Consumption per Capita, ChartsBin, http://chartsbin.com/view/bhy) multiplied by total population of 7.1 billion multiplied by price per kg meat at Global level that is Rs. 271 (The Evolution of SHEEP MEAT products, balnimalcon.nku.edu.tr/romanya(2011)/4/Raducuta.I.2.pdf ) 141 IBID Kashmiris love mutton
142

J&K Bank, http://www.jkbank.net/specialisedLoans.php#sheep

43 Mutton Processing/(Frozen) Packaging


Market Opportunity Mutton Processing/(Frozen) Packaging

Geographical Location Urban areas Potential Market Size National market Rs. 6,611.66 crore143 National export market Rs. 75.15 crore144 Key Customer Segments Local consumers, retailers and national and international traders and wholesalers. Advantage Kashmir The food processing industry is an emerging industry in the Indian economy in recent years. Meat produced both locally and at the national level is processed by butchers individually and sold in retail shops. However, with recent changes in the standard of living in the state, consumers prefer to purchase organic, quality choices of meat products. In India there are 90 factories dealing in processing and preservation of meat. At the local level, the mutton processing industry has not yet been explored. Locally about 51,000 tonnes of mutton is consumed in Kashmir annually, 21,000 tonees of which is imported from outside the state145. In order to boost local processing and distribution, the government offers various schemes for establishing such industrial units. These schemes include the Capital Investment Subsidy, the Interest Subsidy Scheme, the Comprehensive Insurance Scheme, and the Transport Subsidy Scheme146. In addition, JK Entrepreneurship Development Institute (JKEDI)147 offers further support for youth entrepreneurs in terms of proposal development, access to finance and training in the related sector.

143

The total value of processed meat industry in India is Rs. 661,166 lacs in 2008-09 (S Rehman, The bones and flesh of an industry, http://www.tehelka.com/story_main51.asp?filename=Ws230112bones.asp) 144 The total export of processed/chilled/frozen mutton from India is 4973600 kgs (Mutton and lamb processing project profiles, Global agri system, http://www.mpstateagro.nic.in/Project%20Reports%20pdf/MUTTON%20AND%20LAMB%20PROCESSING.pdf) multiplied by price per kg of mutton Rs. 151.10 (Lamb monthly prices, January 2012, http://www.indexmundi.com/commodities/?commodity=lamb&currency=inr) 145 (Kashmir eats 51,000 tons of mutton a year, NDTV, July 2011, http://www.ndtv.com/article/india/kashmir-eats-51-000tons-of-mutton-a-year-122403) 146 (Schemes, J&K development Finance Corporation Limited, http://jkdfc.org/schemes.htm) 147 (Aims and Objectives, JKEDI, http://www.jkedi.org/aims.asp)

44 Leather Tanning
Market Opportunity Leather Tanning

Geographical Location Rural and urban areas Potential Market Size Local market Rs. 329 crore148 National market Rs. 19,680 crore149 Key Customer Segments Local and national leather goods manufacturers and leather tanning exporters Advantage Kashmir Kashmirs leather industry has the potential to generate revenue of US$1 billion per year. On average, 3.5 million sheep and goatskins plus 1.2 million cattle hides are present in the market annually150. The absence of a tannery in Kashmir, however, forces producers to sell these skins at reduced prices to traders from outside the state151. Youth entrepreneurs would benefit from great access to raw materials due to the amount of animals slaughtered for meat consumption in Kashmir every year. Goats, sheep and even cowhides are widely available for leather tanning purposes in the Valley. Entrepreneurs would also benefit from manufacturing/marketing leather tanning value addition products such as shoes, jackets, purses and other fashion accessories (leather wrist cuffs engraved with designs have become highly popular in the international market). The State Industrial Development Corporation, (SIDCO) has reserved 1500 kanals of land for the development of a leather park in its 5,000 kanal industrial estate at Lassipora, Pulwama. News Links Tanning a Fortune, Kashmir Life, Vol 01, Issue 33, http://www.kashmirlife.net/index.php?option=com_content&view=article&id =923%3Atanning-a-fortune-&Itemid=207

148

The number of skins produced each year from Kashmir is 4700000 (Loosing to tanneries, Kashmir News, April 2006, http://www.kashmirnewz.com/story02d16042006.html ) multiplied by processing price per skin Rs. 700, (Loosing to tanneries, Kashmir News, April 2006, http://www.kashmirnewz.com/story02d16042006.html) 149 The financial year 2007-08 was auspicious for India's leather industry. Exports stood at $3.47 billion, up 13.67% over the previous year(Leather industry battles price hike, input shortage, The Economic times, September 2008, http://articles.economictimes.indiatimes.com/2008-09-04/news/27718704_1_leather-manufacturers-leather-industrymukhtarul-amin) 150 (Haroon Mirani Losing to tanneries, Kashmir News http://www.kashmirnewz.com/story02d16042006.htm) 151 IBID

45 Wool Processing
Market Opportunity Wool Processing Geographical Location Rural and urban areas Potential Market Size Local market Rs. 300 crore152 National market Rs. 5,910.4 crore153 International market Rs. 76,042.29 crore154 Key Customer Segments Local handicraft units, government, and private firms

Advantage Kashmir Kashmir Valley produces 67 lakh kgs of wool every year, however, the majority of this production is not processed in J&K state; instead the wool produced in Kashmir is processed in Punjab and Haryana155. Out of 67 lakh, only one lakh kg is processed for making woolen cloths in both private and government sectors in Kashmir. However, ironically, after wool is produced in Kashmir it is sent to other states to be processed, the state then imports wool products such as blankets, crewel yarn and etcetera at higher costs. In addition in 2009 400,000 kg of wool was imported from other states. Sources said the state produces wool worth Rs. 25 crore annually but the farmers and sheep breeders are not getting even Rs. 5 crores as most of the wool is getting damaged during the storage stage.156 Due to the lack of basic infrastructure, many people have been reluctant to invest in this sector157. There are very few businessmen who have endeavored to take full advantage of potential wool productivity in Kashmir. Yet, the state has the potential to produce woolen cloths worth Rs 300 crores annually158. Therefore, youth entrepreneurs would radically change the face of the wool market in Kashmir by reducing the outflow of capital from the state and processing wool locally. News Links Warming up to wool, Kashmir Life, Vol 03, Issue 47, 2012, http://www.kashmirlife.net/index.php?option=com_content&view=a rticle&id=2282:warming-up-to-wool&catid=16:specialreport&Itemid=164

152

Total production of raw wool is about 67 lakh kgs(Kashmir Wool industry suffers for want of Infrastructure, Greater Kashmir, January 2012, http://www.greaterkashmir.com/news/2009/Jan/2/kashmir-wool-industry-suffers-for-want-of-infrastructure-23.asp) In India, wool consumption in 2011/12 is forecast to total 82,000 tonnes, multiplied by $14,650 per tonne (World consumer products: EIU's December wool outlook, 2011, The Economist, http://www.eiu.com/index.asp?layout=ib3Article&article_id=38602988&pubtypeid=1122462497&country_id=1510000351&page_title=&rf=0) 154 World wool consumption in 2011/12 (July-June) is forecast at 1.055million tones, multiplied by $14.650 per tonne (World consumer products: EIU's December wool outlook, 2011, The Economist, http://www.eiu.com/index.asp?layout=ib3Article&article_id=38602988&pubtypeid=1122462497&country_id=1510000351&page_title=&rf=0) 155 Kashmir Wool Industry In Shambles, Greater Kashmir, 2009, http://www.jammu-kashmir.com/archives/archives2009/kashmir20090215d.html 156 Kashmir Wool Industry In Shambles, Greater Kashmir, 2009, http://www.jammu-kashmir.com/archives/archives2009/kashmir20090215d.html 157 (Billal HussainKashmir wool Industry Suffers for the sake of infrastructure,Greater Kashmir,2009 http://www.greaterkashmir.com/news/2009/Jan/2/kashmir-wool-industry-suffers-for-want-of-infrastructure-23.asp) 158 IBID
153

46 Cold Storage
Market Opportunity Cold Storage

Geographical Location Rural and Urban areas Potential Market Size Local market example a Kashmir enterprise with a 500 tonne integrated cold chain facility for storage ripening and primary processing for fruits and vegetables can expect an annual turnover of Rs. 1.9 crore159 Natonal market Rs. 12,792 crore160 International market Rs. 61,008 crore161 Key Customer Segments Local producers and domestic/export marketers of fish, chicken and mutton, fruits and vegetables Advantage Kashmir Cold storage facilities offer massive business potential given the current lack of availabile facilities and the large quanitity of items produced/imported that require cold storage facilities. For instance, 19,230 tonnes of fish is produced annually (2008-2009); 273,750 chickens are processed annually (2008-09); 15.3 lakh metric tonnes of fresh fruit are produced annually; and 8.2 lakh of fresh vegetables are imported each year162. Therefore, aspiring entrepreneurs should consider this large market for cold storage to hold strong potential for a startup company with high scalability. Furthermore, India currently reports post-harvest losses of Rs. 50,000 crore in 2011 due to poor cold storage practices. In the Valley, 400,000 tonnes of apple are ruined every year due to spoiling and growers are often forced to sell their produce at cheaper rates. The country annually loses 30% of its 200 million tonne vegetable and fruit production as a result of improper storage techniques. The estimated investment gap of well over Rs. 10,000 crore for a 32 MT storage capacity shortage displays the markets fragmented supply chain and infrastructure163. This gap offers great potential for aspiring entrepreneurs to make great financial gains quickly in the cold storage industry. As a response to this gap, the Indian government provides incentives for the cold storage sector which offer linked tax incentives, increased investment and a hike in income-tax ceilings in order to attract new entrepreneurs to the industry.

159

In Kashmir, India's economic surge brings hope, Aug 08, 2011, IBN Live, http://ibnlive.in.com/news/in-kashmir-indias-economic-surge-brings-hope/174018-3.html 160 Indian Government Provides Incentives To Cold Storage Industry, 2009, FBR, http://www.food-businessreview.com/news/indian_government_provides_incentives_to_cold_storage_industry_090713 161 IBID 162 Digest of Statistics, Directorate of Economics and Statistics Government of Jammu & Kashmir, 2009 163 SBI likely to reduce interest rate on cold storage loans, The Economic Times, 2011 http://articles.economictimes.indiatimes.com/2011-03-03/news/28650721_1_cold-storage-cold-chain-food-processingsector)

47 Mineral Water Bottle Plants


Market Opportunity Mineral Water Bottle Plants

Geographical Location Rural and urban areas Potential Market Size Local market Rs. 700 crore164 National market Rs. 9,075 crore165 International market Rs. 1,509,062 crore166 Key Customer Segments Local and national retailers, wholesalers and exporters Advantage Kashmir The bottled water industry in India is worth nearly Rs. 1,000 crore and is growing at a rate of 40% per year. With mineral water distribution accounting for one-third of the entire sector, entrepreneurs should focus their attention on making the best use of easy access to Kashmir mineral water for increased production and higher rates of return. The Kashmir Valley is bestowed with fresh water springs and rivers walled within high mountains, which are the main sources of water for drinking and irrigation. Therefore, entrepreneurs experience the advantage of this great access to this primary raw material in the state. Additionally, by pursuing the branding of mineral water/bottled water, entrepreneurs gain access to the state government scheme which provides support for brand promotion with a subsidy rate of 50% of expenses incurred to a limit of Rs. 20,00,000 in the first year167. This venture also experiences potential for export nationally and internationally due to high market demand.

164

Kashmir imports water bottles worth 700 Crores (Govt apathy turns J&K into a consumer State: Traders Rising Kashmir, Jan. 2012, http://www.risingkashmir.com/news/govt-apathy-turns-jk-into-a-consumer-state-traders-20286.aspx) 165 The per capita consumption of bottled water in India is 5 litres/year. ( Archana P Prasana, USL may spin off bottled water biz into separate subsidiary Business Standard, May 2010 http://www.business-standard.com/india/news/usl-may-spin-off-bottled-water-biz-intoseparate-subsidiary/393597/) Multiplied by 1.21 billion population of India, multiplied by RS. 15, the average price of 1 litre of bottled water. ( Aadati J. Lakade, Hotel cant sell bottled water at higher price: Consumer forum The Indian Express, Feb 2012, http://www.indianexpress.com/news/hotel-cant-sell-bottled-water-at-higher-price-consumer-forum/915101/) 166 The global per capita consumption of bottled water is 24 litres per year (Archana P Prasana, USL may spin off bottled water biz into separate subsidiary Business Standard, May 2010 http://www.business-standard.com/india/news/usl-may-spin-off-bottled-water-biz-intoseparate-subsidiary/393597/) multiplied by 7.1 billion global population, multiplied by global average price of 1 litre of bottled water. $1. 80 (INR 88.56) ( Richard Wilk, Bottled water, Demonstrating the difference between value and price May 2011 http://indiana.academia.edu/RichardWilk/Talks/42424/BOTTLED_WATER_Demonstrating_the_Difference_between_Value_and_Price) 167 (J&K SIDCO Activities - Brand Promotion, http://www.jksidco.org/activities.html#bra_pro)

48 Apple Juice Concentrate and Packaged Juice


Market Opportunity Apple Juice Concentrate and Packaged Juice

Geographical Location Urban areas Potential Market Size Local market Rs. 92.4 crore168

Key Customer Segments Local and national juice manufacturers, wholesalers and export traders Advantage Kashmir The raw material for production of apple juice concentrate is cheaply and readily available in Kashmir. Kashmir produced 1,150,590 tonnes of apples in 2008-09169 of which grade A and B apple is exported to other states of India. The C grade apple produced is used as a raw material for production of apple juice concentrate with the support from the local government under the Market Intervention Scheme introduced in 2004-05. Under this scheme, the C grade apple is procured for processing at the rate of Rs. 3 per kg170. Presently, Kashmir has a larget apple juice concentrate manufacturing unit with a production capacity of 8,000 tonnes annually171. Youth entrepreneurs would benefit from investment in this market opportunity due to current government assistance and attention to the enhanced productivity of the industry. Additionally, this industry offers advantages of ample availability of human labour and potential to boost the local economy through greater utilization of locally produced apples. The J&K Bank also introduced the JK Bank Apple Advance Scheme in 2011 to ensure timely and adequate credit catering to all requirements of apple growers172. News Links Soz seeks market intervention scheme for C-grade apple, Greater Kashmir, 2011, http://www.greaterkashmir.com/news/2011/Aug/9/soz-seeks-marketintervention-scheme-for-c-grade-apple-22.asp

168

Kashmir is expected to produce up to 8000 MT of clear apple juice concentrate each year multiplied by the average international price of Rs. 115.5/kg (115,500/MT), Kashmir houses Indias largest apple juice concentrate manufacturer, http://knol.google.com/k/omar-wani/kashmir-houses-india-s-largest- apple/36ekp2ejxlcss/3#) 169 (Digest of statistics, 2008-09, directorate of economics and statistics, government of J&K) 170 Kg (Department of horticulture J&K, Achievements, http://www.indiamart.com/department-of-jandkgovt/) 171 (Afsana Rashid FILs juice plant hallmark of technological excellence, Tribune India, December 2008, http://www.tribuneindia.com/2008/20081210/jkplus1.htm) 172 JK Bank launches Apple Advance Scheme in new form, Greater Kashmir, 2011, http://www.greaterkashmir.com/news/2011/Jan/23/jk-bank-launches-apple-advance-scheme-in-new-form-22.asp

49 Silk Cocoon and Silk Thread Production


Market Opportunity Silk Cocoon and Silk Thread Production Geographical Location Rural areas Potential Market Size Local market Rs. 8.46 crore173 National market Rs. 29.21 crore174 Key Customer Segments Local and national silk processing units Advantage Kashmir Sericulture is a long-standing tradition in Kashmir as the Valley is known for its silk-weaving industry. In Srinagar, the manufacturing factory produces 300,000 meters of various types of silk fabrics, georgette, parachute and suiting annually175. According to the Economic Survey 2010-11, J&K state leads the north-western states of the country in bivoltine cocoon production with 860.00 MT and 101.00 MT of raw silk. However, with a national domestic demand of 27,000 MT a great deal of silk is still being imported from China, roughly 31%. The gap in production and consumption presents a great opportunity for youth entrepreneurs to expand the domestic production. Recognising the importance of sericulture in the state, the government has a special package which offers US$3 million for the development of sericulture which includes price stabilisation, procurement of cocoons, and cultivation of mulberry plantation in private land. In 2010-11, cocoon growers in the state got remunerative prices for their silk produce with some fetching record high prices of Rs. 700/kg. Additional schemes introduced by the state include the Health Insurance Scheme for women rearers and the Catalytic Development Programme under which 200 silkworm rearers are being provided rearing kits worth Rs 0.20 lakh176. News Links Living in a Cocoon, Kashmir Life, Vol 03, Issue 14, 2011 http://kashmirlife.net/index.php?option=com_content&view =article&id=1710%3Aliving-in-a-cocoon&Itemid=155

173

Annual production of silk 860 MT 2011 (International Trade in Non-wood Forest Products An overview, FAO Corporate Document Repository, 2011 http://www.fao.org/docrep/x5326e/x5326e0c.htm#3.%20beeswax) , average price per kg US$2 174 IBID 175 Jammu and Kashmir, April 2010, India Brand Equity Foundation, http://www.ibef.org/download/Jammu_&_Kashmir_060710.pdf 176 Economic Survey 2010-11, Directorate of Economics and Statistics, Government of J&K, 2011

50

Green Business

Climate change is a dangerous reality that is largely becoming accepted and addressed by governments across the globe. Due to many research studies, it is evident that Jammu and Kashmir state is highly vulnerable to these issues as well. In 2007, ActionAids study, On the brink? A Report on Climate Change and its Impact in Kashmir177 reported that the average temperature in the Kashmir region had already exampled a rise of 1.45 degrees celsius and a rise of 2.32 degrees celsius in Jammu, with a progressive increase of 0.05 degrees celsius per year. In 2010, the Ministry of Environment and Forests (MOEF), Government of India, conducted research regarding the future impacts of climate change on Kashmir. One of the projected effects, glacier melt in the Himalayas, will eventually increase flooding, rock avalanches and will have a negative impact on water resources, decreasing river flows as the glacier withdraws. Additionally, there will be a dangerous decrease of freshwater availability. The state will also experience negative social impacts as climate change is expected to hinder sustainable development through limiting natural resources and reducing quality of life through further restrictions placed on urbanization, industrialization and economic development178.
177

Talib, Arjimand Hussain, On the brink? A Report on Climate Change and its Impact in Kashmir, ActionAid, http://actionaidindia.org/download/Kashmir_climate_change_report_On%20the%20brink.pdf 178 Jammu and Kashmir: Climate Change Issues, Implications & Activities, Ministry of Environment and Forests, Government of J&K, 2010, http://moef.nic.in/downloads/others/States-SAPCC-JK.pdf

51
Currently, agriculture and horticulture serve as high contributors to the states GDP; however, the study also states that these sectors will see great decline as increased rains hamper paddy production and some areas are converted to dry lands. Additionally, the state will see a high deficit in food production resulting in increased dependence on imports for products such as mutton, milk and poultry. Therefore, now is the time to seek solutions and implement alternative strategies for development. The study conducted by MOEF offers the following suggestions for climate sensitive development strategies: cleaner fuel, clean energy through solar or wind energy, sustainable forest management, integrated watershed management approach, promotion of dry land agriculture and sustainable tourism. Effective response to climate change requires urgent and collective cooperation both socially and economically. Therefore, in the next few decades it is predicted that green businesses will become more predominant and beneficial to society. Initially, the change will be costly; this is an unfortunate yet unavoidable reality. However, as green business opportunities increase and the awareness of the need for change becomes more prevalent, the financial gains will increase as well. The result of a low-carbon, resource efficient economy serves not only as a reason for change but a requirement for local, national and international governments to conduct environment friendly shifts both socially and economically179. According to a study conducted by the UK based company Ernst & Young on the comparative advantages of green business, [t]he key success factors in a green business model are entrepreneurship and innovation which seems to enable the development of green businesses that are likely to be more sustainable than through direct policy support, seeking to bestow comparative advantage in green business where no such advantage naturally lies180. The study offers advice for a successful green business model for aspiring entrepreneurs. The four most obvious basic requirements are access to capital and investment, high investment in new technology, a skilled workforce/team, and existing or developing knowledge clusters and transferable technology (including property rights). Aspiring entrepreneurs wishing to pursue green business opportunities should possess determined, passionate resolve for the cause and mission of preserving the quality of life in the community through energy-efficient strategies. As in all business startups, there will be obstacles along the way; however, the need for green business alternatives in Kashmir is too strong to ignore. Therefore, youth entrepreneurs possess a remarkable opportunity to benefit the community of Kashmir, as well as generations to come, by initiating innovative, technologically advanced green business enterprises aimed at preserving the beauty, sustainability and quality of life in the state.

179

Comparative Advantage and Green Business, Ernst & Young/Department for Business Enterprise and Regulatory Reform, 2008, http://www.bis.gov.uk/files/file46793.pdf 180 IBID

52 Recycled Paper Products


Market Opportunity Recycled Paper Products: (recycled paper carry bags, notebooks, cardboard
boxes, and etc.)

Geographical Location Rural and urban areas Potential Market Size National market Rs. 2,500 crore181182
International market Rs. 2,602,680 crore

Key Customer Segments Local and national retailers, wholesalers and exporters Advantage Kashmir Paper produced by recycling is generally of four kindswriting/printing
paper, newsprint paper, duplex boards, and craft paper. Recycled paper is often made into the same grade of paper that it was originally. Production costs can be down by about 40% with recycled paper183. Currently, the recovery of waste paper in India is low at 26% compared to say Germany at 80%, Thailand at 45%. So out of Indias consumption of 8.3 million tonnes of paper, only about 2 million tonnes is recovered for reuse. 184 In Kashmir, there are currently low levels of competition for the recycling of paper and production of standard recycled paper products (e.g writing paper, cardboard boxes, etc), however, there is significant competition for the production of handicrafts from recycled paper (papier mache). There is no shortage of paper to be recycled in Kashmir with Srinagar alone producing 200,750 tonnes of waste per year, which includes a large share of paper. However, the challenge is that this waste is not separated properly to allow for easy collection and recycling185. In addition, garbage disposal has long been inefficient in Kashmir and contributes to increased pests, the boom in the stray dog population and associated health risks for the public. Recycling of waste remains rare and as such most goes into landfills, including paper, bottles and cans. Therefore the recycling of paper is an incredible opportunity to reduce the overall quantity of waste that is produced and contributes to the reduction of problems associated with it such as health risks to the public and overflowing landfill sites186. A scheme to encourage the public to separate recyclable waste and non-recyclable waste would be very beneficial. Unfortunately such a scheme does not currently exist.

News Links Start Your Waste Recycling Business, Business Manual, 2007, International Labour
Organisation (ILO) http://www.ilo.org/public/english/employment/recon/eiip/download /waste_recycle/business_manual.pdf

181

Indian paper production is worth Rs 25 billion- Indian Paper Industry, J Singh, 2008, http://www.slideshare.net/jaaaspal/indian-paperindustry-presentation 182 Global paper market is worth $529 billion- Global Paper & Pulp Mills: Market Research Report, 2011, IBIS World, http://www.ibisworld.com/industry/global/global-paper-pulp-mills.html 183 Business from Waste paper, 2008, A. MURALIDHARAN http://dare.co.in/opportunities/energy-environment/business-from-waste-paper.htm 184 IBID 185 SRINAGAR: Greater Waste! 2011, A. Fazili, http://www.greaterkashmir.com/news/2011/Sep/12/srinagar-greater-waste--41.asp 186 Lack of garbage disposal poses environmental, health risks in Kashmir, 2011, N.Ara, http://www.globalpressinstitute.org/globalnews/asia/india/lack-garbage-disposal-poses-environmental-health-risks-kashmir#ixzz1nUD6FPIQ

53 Jute Bags
Market Opportunity Jute Bags Geographical Location Rural areas Potential Market Size National market Rs. 3008.5 crore187 International market Rs. 4,377.2 crore188 Key Customer Segments Local and national retailers and wholesalers Advantage Kashmir The ban on the manufacture and use of plastic bags in Kashmir provides a
great opportunity for the production of environmentally friendly alternatives. Jute bags are one such alternative. They are 100% biodegradable and recyclable and made from Jute which is a natural material produced largely in India. The production of the fibre in India produced 2,041 metric tonnes of jute and jute-like fibers in 2006 and about 73 jute mills are operating in the country at present. Within India, the major jute producing areas are West Bengal, Bihar, Assam, Orissa, Andhra Pradesh and Tripura. These areas can provide Kashmir jute bag manufacturers with a reliable supply of raw materials189. According to Muralidharan (2008), Manufacturing jute bags is highly labour-intensive, and a skilled artisan can make up to 50-80 bags in a single day. A jute entrepreneur would require approximately 10,000-12,000 sq feet of land, and equipments such as sewing machines, screens for printing, and cutting equipments. The operating cost of such a unit would be near about 2-2.5 lakhs. Currently a large number of units exist producing jute products in India. However they are mostly very small and situated in rural areas. According to Muralidharan (2008), These small production units run on small capital investments, and depend on local raw materials, inherited artistic skills and indigenous technology. They generally earn a profit margin of approximately 20%-30%, catering to the domestic market. However, the biggest disadvantage is that even though they know how to make the products, they are generally unaware of advanced marketing techniques190. Therefore there is great potential in Kashmir for entrepreneurs to enter this sector making full use of modern marketing to reach consumers locally, nationally and globally where the export potential for such products is high.

187

Calculation for jute bags market in India total production of sacks in 2008-2009 was 1066.7 (000 tonnes) multiplied by the price of Rs. 28,203.9 per tonne (International Jute Study Group Online, Ministry of Textiles, Government of India, copyright 2003 http://www.jute.org/index.php ) 188 Calculation based on combined production rates (2008-2009) for Bangladesh 180.6, India 1066.7, Pakistan 54.34 and Myanmar 1.12 (all 000 tonnes) multiplied by the average price $682.92 USD per tonne converted to INR (IBID) 189 Start a Jute Sacking Bags Manufacturing Business, 2011 http://365days365businessideas.blogspot.com/2012/02/start-jute-sacking-bags-manufacturing.html 190 Muralidharan, A, Jute Diversified Products: A Golden Opportunity, 2008, http://dare.co.in/opportunities/manufacturing/jute-diversifiedproducts-a-golden-opportunity.htm

54 Solar Power/Solar Heating


Market Opportunity Solar Power/Solar Heating Geographical Location Rural and urban areas Potential Market Size Local market Rs. 78.75 crore191 National market Rs. 2045.5 crore192 International market Rs. 98,700 crore193 Key Customer Segments Local consumers, business establishments, hotels, hospitals, government departments Advantage Kashmir Renewable energy like solar power has great potential in Kashmir to fill the
gap in supply and demand of electricity and reduce the impact of frequent power cuts. In Kashmir the production and use of renewable energy is negligible and in India only 4% of electricity comes from renewable sources194. However one of the current schemes of mention is the supply of 15,000 solar home lighting systems to various districts of J&K by the J&K Energy Development Agency195. The J&K government is promoting solar thermal systems by sanctioning the setting up of 10 Akshay Urja shops in J&K to sell and repair renewable energy and energy saving devices. For solar cooking one of the best places in J&K is Ladakh as it receives around 320 days of sunshine per year and the market of solar cooking is so far an untapped market. The Central Electricity Regulatory Commission has passed new regulations, which includes J&K to encourage businesses to increase investment in renewable energy by providing higher returns on their investments. Its therefore now estimated that returns will increase from 19 to 24%. Furthermore the J&K Government has an incentive package for private power producers that include planning permission, tax holidays, easy availability of cheap loans, reduction of custom duty for the import of equipment and favourable debt equity ratio. Specifically for solar power, the Solar Photovoltaic (SPV) programme provides financial assistance in the form of grants-in-aid and subsidies resource assessment, feasibility studies, research and development and to design, install and operate Solar Photovoltaic Power Plants. The financial assistance for Jammu & Kashmir covers up to 90% of the project cost with maximum of Rs.1.62 crore per 100 kWp196.

191

Per capita consumption of electricity in J&K is 750 units (Talib, A.H., Three Gentlemen, Three Stories, Greater Kashmir, 2011, http://www.greaterkashmir.com/news/2011/Sep/25/three-gentlemen-three-stories-38.asp) multiplied by total population of Kashmir 7,000,000 multiplied by price per unit of solar power, 15 paise (Supriya Gorphade, 1 unit of solar power costs only 15 paise, DNA, 2011, http://www.dnaindia.com/bangalore/report_1-unit-of-solar-power-costs-only-15-paise_1604188) 192 Per capita consumption of electricity in India is 112.7 KW, (Jammu and Kashmir Economic Survey 2010-11, Planning Commision Department, Government of India, 2011) multiplied by 1.21 billion population, multiplied by price per unit of solar power, 15 paise (IBID) 193 Market size for solar power is 20 billion dollars. (Ambrish Jha, Solar Photovolatic Cells: A Growing Industry Dare, August 2009 http://dare.co.in/opportunities/energy-environment/solar-photovolatic-cells-a-growing-industry.htm) 194 J&K: Investment in the New and Renewable Energy Sector, 2012 Arjun Vachani, http://theviewspaper.net/jk-investment-in-the-new-and-renewable-energy-sector/ 195 Rs 8 cr solar energy project inaugurated in Jammu & Kashmir, 2011, Panchabhutha, http://panchabuta.com/2011/09/27/rs-8-cr-solar-energy-project-inaugurated-in-jammu-kashmir/ 196 Renewable Energy and Energy Efficiency Status in India, 2007, ICLEI South Asia, http://localrenewables.iclei.org/fileadmin/template/projects/localrenewables/files/Local_Renewables/Publications/RE_EE_report_India_final_sm.pdf

55

Micro-Hydro Power Projects


Market Opportunity Micro-hydro Power Projects (MHPs)

Geographical Location

Rural areas

Potential Market Size

Local market Rs. 1,575 crore197 National market Rs. 23,864.22 crore198

Key Customer Segments

Local population consumers of MHP power/electricity

Advantage Kashmir The state is in a prime position to harness micro-hydro power electricity due
to the availability of suitable rivers and river basins. The state also has a well developed transmission network for the supply of power to the national grid. However, J&K currently exports the majority of electricity produced. This results in J&K needing to import up to 70% of its power from outside the state199. Therefore, the potential for a vast expansion in the states production of electricity can be easily seen. The implementation of MHP projects is especially important for rural areas of Kashmir where well over a third of the population have no access to electricity200. This increase in electricity can stimulate economic development by providing increased access to electricity to businesses and households. In 2010, the J&K government established the Policy for Development of the Micro/Mini Hydro Power Policy in order to attract investors for the development of the states water resources in an environment friendly manner201. Incentives and concessions under this policy include the following: no entry tax will be levied by the state government on power generation or transmission equipment used for MHPs; 3% interest subsidy available to implementing partners for working capital facilities from banks for an initial period of 5 years; 10% additional subsidy on working capital power projects with a ceiling of $13 million USD; exemption of court fee for registration of documents relating to lease of land, mortgage deed exempt from stamp duty payment; government land allotted on lease for 40 years at a premium of $0.02 US per squre metre; no royalty to be paid for hydro electric projects up to 2 Mega Watts capacity.
From Mega to Small Hydro Projects, Greater Kashmir, 2011,

News Links http://www.greaterkashmir.com/news/2011/Oct/20/from-mega-to-small-hydroprojects-30.asp

197

per capita consumption of electricity in J&K is 750 units, (A H Talib, Three Gentle men, three stories, Greater Kashmir, September 2011, http://www.greaterkashmir.com/news/2011/Sep/25/three-gentlemen-three-stories-38.asp) multiplied by total population of Kashmir 7000000, multiplied by price per unit of electricity Rs. 3, (Inam ul Rehman, where does it go, Greater Kashmir, January 2012, http://www.greaterkashmir.com/news/2012/Jan/13/where-does-it-go--33.asp) 198 Per capita consumption of electricity in India is 112.7 KWh, (Economic Survey 2010-11, planning commission department, Government of India,) multiplied by 1.21 billion population of India, multiplied by price per kwh Rs.1.75 (Electricity In India, International Energy Agency, 2006, http://www.iea.org/work/2006/gb/publications/india_electricity.pdf) 199 J&K Investment in the New and Renewable Energy Sector, 2012, Vachani, http://theviewspaper.net/jk-investment-in-the-new-andrenewable-energy-sector/ 200 "Technology development prospects for the Indian power sector", 2011, Uwe Remme et al, International Energy Agency France; OECD. 201 For more information, please see Policy for Development of Micro/Mini Hydro Power: Energizing the State by Hydro Power, Jammu and Kashmir Energy Development Agency, Government of J&K Civil Secretariat, 2011

56 Biomass Fuel Briquettes

Market Opportunity Biomass Fuel Briquettes Geographical Location Rural areas Potential Market Size National market Rs. 330 crore202 International market Rs. 9,732 crore203 Key Customer Segments Urban and rural households Advantage Kashmir The world is striving to find alternatives to the use of fossil fuels and Kashmir is no different. Kashmir consumes a huge amount of wood and coal with more than 70% of people in J&K burning solid fuels such as coal and wood in their homes204 . Biomass briquettes offer a viable alternative to the use of these fuels. Biomass briquettes are compressed compounds that contain various organic materials including rice husk, groundnut shells, solid waste and agricultural waste. In fact any organic material that contains high nitrogen content can be used. These raw materials are widely available in Kashmir and as there is little to no current production of these briquettes in Kashmir, the competition for these materials as well as in the market is minimal. The great potential for biomass briquettes is not only in their benefits to the environment by reducing the need for deforestation and production of less greenhouse gas emissions but also in the fact that they offer cost savings to the consumer. These savings can reduce up to 40% of boiler fuel costs compared to using coal205. Biomass briquettes have a large domestic market as they can be used for heating homes, offices, schools, kilns and even mosques. Fuel briquettes can also be supplied to the Kiln owners in Kashmir. Mosques in Srinagar currently consume 40,000 quintals of wood per year. The government of India is also encouraging the use of alternative source of energy, and several states like Uttrakhand, Gujarat, and Tamilnadu governments are already providing subsidies to biomass fuel briquette manufacturers.

202

The average price of Briquettes is INR 4400 per tonne ( Biomass briquetting : An Overview Magazine For Biomass Energy, December 2009) Multiplied by The annual production in India ( Dr David Fulford and Dr Anne Wheldon, Biomass briquettes and pellets Ashden http://www.ashden.org/briquettes) 203 The annual production of Biomass Briquettes of few countries ( Europe 5 million Tonnes, India 750000 Tonnes, China 1000000 Tonnes, Bangladesh 219000 Tonnes, Brazil 1000000 Tonnes, USA and Canada 680000 Tonnes, Austria 41000 Tonnes, Denmark 150000 Tonnes, Norway 20,000, Finland 90000 Tonnes, Sweden 470000 Tonnes) ( S.C. Bhattacharya, Biomass energy and densification: A Global Review with Emphasis on Developing Countries http://cenbio.iee.usp.br/download/documentos/apresentacoes/swedendensificationpaperfinal.pdf) Multiplied by average rate in international market $210 dollars per tonne (INR 10332 ) ( Dr David Fulford and Dr Anne Wheldon, Biomass briquettes and pellets Ashden http://www.ashden.org/briquettes) 204 (Salman Nizami, Smoke, the Killer in the Kitchen, Greater Kashmir, December 2011 http://www.greaterkashmir.com/news/2011/Dec/15/smoke-the-killer-in-the-kitchen-3.asp) 205 Biomass briquettes, 2012, Wikipedia, http://en.wikipedia.org/wiki/Biomass_briquettes

57 Energy-Efficient Stoves
Market Opportunity Geographical Location Energy-Efficient Stoves Urban and rural areas

Potential Market Size Local market Rs. 138.62 crore206 National market Rs. 47,200 crore207 International market Rs. 24,600,000 crore208 Key Customer Segments Local rural population Advantage Kashmir There is great potential in Kashmir for the production of energy efficient stoves and expanding the use of these stoves. Currently the use of such stoves is minimal mainly due to the lack of knowledge, socio cultural barriers and the lack of availability of reasonably priced energy efficient stoves in the market. The Energy Research Centre (ERC) is an NGO that has been working in Jammu and Kashmir in providing training as part of the implementation of the National Programme on Improved Cookstoves to increase awareness of the stoves use, their benefits and reduce socio cultural barriers. The ERC has also developed various models of cooking stoves suitable for use in Jammu and Kashmir209. In addition as part of the National Programme on Improved Cookstoves targeted households are eligible for a subsidy on the purchase of a stove. The unit cost of a fixed-type mud improved stove varies from Rs 110 to 190 and the central subsidy accounts for 50% of the stove cost in most states210. The demand for this product could be very large once the public become aware of the great benefits the product can offer them which include a reduction in the quantity of fuel (firewood or coal) required, which in turn has economic benefits and can have a favourable environmental impact by helping reduce deforestation in the state. Also the use of these stoves reduces the output of toxic soot and smokes which can increase the risks of developing respiratory illness, lung cancer, pneumonia, cataracts, and tuberculosis211.

206

Number of rural households in Kashmir is 469929 (Digest of statistics 2008-09, directorate of economics and statistics. Government of Jammu and Kashmir) Multiplied by Average price of energy efficient stoves INR 2950 (Prince Mathews Thomas, N.S. Ramnath, Why Is Hillary Clinton Peeping into Indian Kitchens? Forbes India, April 2006 http://forbesindia.com/printcontent/23752) 207 The Average price of the domestic energy efficient stoves is INR 2950 Multiplied by 160 million households across India where traditional stoves are used everyday. (Prince Mathews Thomas, N.S. Ramnath, Why Is Hillary Clinton Peeping into Indian Kitchens? Forbes India, April 2006 http://forbesindia.com/printcontent/23752) 208 The world market for energy efficient stoves is $5 trillion. (SEWA to provide solar lanterns and energy-efficient stoves to its members The Hindu, November 2011 http://www.thehindu.com/news/national/article2642439.ece) 209 The Energy Research Center, 2012, Partnership for Clean Indoor Air http://www.pciaonline.org/node/135 210 Improved Cook Stoves 2011, Climate tech Wiki, http://climatetechwiki.org/technology/imcookstoves 211 India Announces Improved Cook Stove Program B.Block, 2012 http://www.worldwatch.org/node/6328

58 Bio-diesel
Market Opportunity Bio-diesel Geographical Location Rural areas, fallow/wastelands Potential Market Size Local market 1450.87 crore212 National market 149,248 crore213 International market Rs. 629,050 crore214 Key Customer Segments Local vehicles, offices and business establishments using diesel for fuel Advantage Kashmir The promotion of Bio-Diesel is not only due to the need to reduce greenhouse gas emissions, but also to find cheaper alternatives to standard diesel. The daily consumption of diesel in Kashmir is 15 lakh litres and all of it is imported. Therefore, the production of biodiesel within Kashmir has massive potential and can offer customers both a cheaper and cleaner alternative to diesel. The cultivation of Jathropha plants can be used to produce bio-diesel, which can be grown on 1.47 lakh hectares of cultivable wasteland, in J&K215. One hectare of land yields 7.5 tonnes of jatropha seeds or 2.5 tonnes of bio-diesel oil216. The government of India has already started a project to promote the biodiesel allover India and expects production of bio-diesel to reach 2 million tones in 2012 with a target of 5% of its current 40 million tones of annual diesel consumption coming from bio-diesel within the next 5 years217. The program is encouraging the plantation of jatropha plants all over India.

212

Daily consumption of Diesel in Kashmir is 15 lakh litres ( Mukeet Akmali, Valley shells out 1.5 Cr on petrol Daily , Greater Kashmir, December 2011, http://www.greaterkashmir.com/news/2011/Dec/13/valley-shells-out-1-5-cr-on-petrol-daily-25.asp) Multiplied by 365 days, multiplied by price of one Litre of Bio diesel Rs. 26.50/litre (Raise price of Jatropha bio-diesel to Rs 36/lit: CII, The Times Of India, Jan. 2011) 213 consumption of diesel in India was around 56.32 million metric tons (MMT) ( Shashi K jain, Sunil Kumar, Alok Chaube , Jatropha biodiesel: Key to attainment of sustainable rural Bio energy regime in India 2011 http://scholarsresearchlibrary.com/aasr-vol3-iss1/AASR2011-3-1-425-435.pdf) multiplied by the price of one Litre of Bio-diesel 26.50/litre (Raise price of Jatropha bio-diesel to Rs 36/lit: CII , The Times Of India, Jan. 2011) 214 Biofuel Consumption: Global Industry Guide 2011, Datamonitor, 2011 215 http://www.greaterkashmir.com/news/2011/Jun/9/guarding-the-green-wealth-12.asp 216 http://www.greaterkashmir.com/news/2008/Oct/28/cultivation-of-jatropha-the-wonder-plant-15.asp 217 http://www.livemint.com/2007/08/30181006/India-pins-biofuel-hope-on-jat.html

59

60

Handicrafts

Kashmiri handicrafts production and distribution offers great market potential for aspiring entrepreneurs due to the high demand for products and high local economic returns. Furthermore, Kashmiri handicrafts have proven to be highly lucrative products in local, domestic and international markets. However, the sector is in great need of passionate, determined youth entrepreneurs to take Kashmiri handicrafts to new heights. Kashmiri handicrafts are rare treasures due to their aesthetically pleasing, often handmade craftsmanship. Also, they are sourced from organic raw materials such as cotton, silk, wool and wood making them even more unique in the international

61
market. The traditional embroidered designs are exquisite and intricate, having been passed down through the generations maintaining such beauty which often reflects Kashmirs natural landscape and rich cultural history. As the market continuously evolves to cater to technological advances and generational trends, traditional handicrafts are in danger of becoming outdated and redundant. Therefore, youth entrepreneurs hold a great advantage in the handicrafts market as they possess the ability and opportunity to revamp the sector. Through innovative manufacturing and creative, modern designs, strong-minded entrepreneurs will revitalize the industry and preserve the states cultural heritage of artistic beauty and design. The total export value of Kashmirs handicrafts industry during 2006-07 was Rs. 16,117.38 crore218, while the total export market for India in 2011 (mainly exporting to the US and EU) was Rs. 8,364 crore219. From Kashmiri carpets and shawls to woodwork, papier-mache, and etc., the beauty of Kashmirs cultural and ethnic diversity attracts consumers from across the globe. This sector serves a unique advantage for export potential due to the local talent of weavers, designers and carpenters in intricate workmanship. In addition to being environment friendly, these activities are best suited to the state as they are more labour intensive and less capital intensive; therefore, they have scope for employment generation at a large scale. The sector engages approximately 3.74 lakh artisans in manufacturing handicraft products in the state. Therefore, local skilled weavers and designers of textile products can provide basic insight to set up textile units catalyzing the startup of a young entrepreneur. As a traditional industry in the state, handicrafts has received priority attention from the government due to its large employment base and export potential. The J&K Planning Commission describes handicrafts as a cottage-based industry that does not require heavy capital investment or heavy infrastructure of machinery, buildings and power such as other market opportunities might require. Additionally, the state considers this sector to be of great importance due to the fact that it has enormous employment potential, it does not consume scarce resources, does not cause pollution and is environment friendly. Therefore, not only would youth entrepreneurs personally benefit, but pursuit of handicraft businesses would also benefit the Kashmir community both socially and economically. In 1978, the government instituted the Quality Control Act in order to maintain the quality of the handicrafts sector. Since then, the government of J&K continues to increase market access to handicrafts producers through effective training in marketing strategies and appropriate incentives. The state has established the J&K Handicraft Sales and Export Promotion Corporation and the J&K Handloom Development Corporation to promote development and growth of this vital sector220. According to the J&K Economic Survey 2010-11, the state sustains 478 Handloom Cooperative
218

Annual report 2006-07 CHAPTER XI HANDICRAFTS, 2007, Ministry of Textiles, http://texmin.nic.in/annualrep/AR0607-11.pdf 219 India's handicraft exports up 9 per cent in December, 2012, The Economic Times, http://articles.economictimes.indiatimes.com/2012-01-17/news/30635824_1_major-handicraft-hubs-crocheted-goodshandicraft-exports 220 Jammu and Kashmir, 2010, India Brand Equity Foundation (IBEF), http://www.ibef.org/download/Jammu_&_Kashmir_060710.pdf

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Societies, 37,000 handlooms, and offers access to 100 training centres in order to increase skill development and enhanced productivity of artisans and weavers. self-employment programme. Newly trained artisans, an estimated 750 annually, are organised into these cooperative societies as part of the governments Their goods are then marketed through the Apex Marketing Federation, which also provides raw materials to these organised societies. J&K Bank offers several specialised finance schemes including Craft Development Finance, Khatamband Craftsman Finance, J&K Bank Handicrafts Sustenance Finance and J&K Bank Craftsmen Livelihood Finance221. However, the government has also established the Handloom Development Scheme which incorporates four sub-schemes: Workshed Housing Scheme, Deen Dayal Hatgara Protsahan Yojna, Integrated Handloom Cluster Development Scheme, and the Integrated Handloom Training Programme. This scheme contributes to the sustainable development of the handicrafts sector by encouraging professional development of handicraft clusters as cohesive, selfmanaging and competitive socio-economic units222. distributed Rs. 15.11 lakh under this scheme. The export-oriented industry of handicrafts remains open to innovative ideas and changes in basic infrastructure and designs. Youth entrepreneurs will benefit from the following market opportunities by acknowledging the evolving demand of trendy designs and product diversification while maintaining the significance and beauty of Kashmiri culture. In 2009-10, the government allotted and

221 222

J&K Bank, http://www.jkbank.net/specialisedLoans.php J&K Economic Survey 2010-11, Directorate of Economics and Statistics, Government of J&K, 2011

63 Chain Stitch Rugs

Market Opportunity Chain Stitch Rugs Geographical Location Rural and urban areas

Potential Market Size Local market Rs. 51.01 crore223 National market Rs. 81 crore224 International market Rs. 972,192 crore225 Key Customer Segments Local consumers, national and international tourists, commercial offices and government departments, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12 chain stitch production in Kashmir was Rs. 231.18 crore, export production was Rs. 154.00 and the industry employed 37,429 artisans directly. Raw materials of silk and cotton are easily accessible and a large number of skilled and semi-skilled workers are available for production/manufacturing of these handicraft goods in Kashmir. Therefore, human labour is readily available. Entrepreneurs should rejuvenate the chain stitch rugs industry through innovative, modern designs and creativity. The state government provides loans of up to Rs. 100,000 with 10% interest subsidy for a period of 5 years. The Handicraft Deparment also provides a state award scheme which rewards master craftsmen for excellent performance and production. Additionally, entrepreneurs should consult the specialized finance schemes for the handicraft sector offered by the J&K bank. News Links Kashmir Handicraft Exports Touch All-time High, Kashmir News Live, http://www.kashmirnewslive.com/Business-News/kashmirhandicraft-exports-touch-all-time-high.html

223

Kashmir chain stitch production Rs 51.01 crore 2008-2009 Digest of Statistics 2008-2009, 2009, Directorate of Economics & Statistics Government of Jammu & Kashmir 224 Kashmir chain stitch export- 81 crore 2008-2009, (IBID) 225 $197.6 billion global demand for flooring and carpet (World Flooring and Carpets Market, 2011, Report Linker, http://www.reportlinker.com/p099484-summary/World-Flooring-and-Carpets-Market.html)

64 Copperware
Market Opportunity Copperware Geographical Location Rural and urban areas Potential Market Size International market Rs. 2,199.92 crore226 Key Customer Segments Local consumers, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12 copperware production in Kashmir was Rs. 37.33 crore and the industry employed 6,218 artisans directly. The beauty of Kashmirs copperwork is well known locally, nationally and internationally. Samovars, bowls, plates and trays serve as traditional copperware objects. Youth entrepreneurs can boost the declining copperware market through improved marketing strategies using online web portals and even social networking media. Over the years, the copperware industry has declined in Kashmir due to poor working conditions for artisans and unfair salaries issued for labour. Youth entrepreneurs can revitalize this industry by offering fair wages for skilled labour and improving the standards of work conditions. By using local skilled artisans, entrepreneurs can employ the traditional intricate handiwork of Kashmir while also incorporating modern designs. Additionally, the state government offers schemes, trainings and incentives as well as loans of up to Rs. 100,000 with a 10% interest subsidy for a period of 5 years. The state government is also providing health insurance coverage to handicraft artisans in order to enhance development of the industry.

226

India Artmetal Wares Exports 2011-2012 2199.92 crore Review Exports During 2011-2012 (April-January), 2012, Export Promotion Council for Handicrafts, http://www.epch.in/EXPORTData.pdf

65 Embroidery (Kurties and Overcoats)


Market Opportunity Embroidery for Kurties and Overcoats Geographical Location Rural and urban areas

Potential Market Size Local export market Rs. 4,117.84 crore227 National export market Rs. 3,570.12 crore228 Key Customer Segments Local consumers, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12 production of embroidery for kurties and overcoats in Kashmir was Rs. 41.63 crore. Embroidered kurties and overcoats are considered to be classic pieces of fashion evergreens that are always valued highly in Kashmiri culture and will never go out of style. However, Bollywood films like Rockstar have recently propelled Kashmiri fashion back onto the catwalk simultaneously placing Kashmiri fashion in high domestic and international demand. With more films due to be filmed in Kashmir, this demand will only increase and become more sustainable. Entrepreneurs should update their fashion designs to keep this handicraft industry in current alignment with the latest fashion trends. The Credit Guarantee Fund Scheme (CGFS) covers credit facilities extended to small-scale industries, handicrafts included, by the J&K banks229. The scheme is in place to alleviate the problem of collateral security and impediment to flow of credit to artisans associated with the handicraft sector. The guarantee cover under the CGFS is available, in respect of a single eligible borrower, not exceeding Rs. 50 lakh by way of term loan. Additional services are provided by the Women Development Corporation (WDC) that trains women and also provides them with financing at a substantially lower interest rate, at 4 percent. News Links KVIB schemes benefit 50,000 artisans, Greater Kashmir, 2011, http://www.greaterkashmir.com/news/2011/Apr/4/-kvibschemes-benefit-50-000-artisans--21.asp

227

Kashmir Embroidered goods exports 4117.84 crore Rs (2006-2007) (Annual report 2006-07 CHAPTER XI HANDICRAFTS, 2007, Ministry of Textiles, http://texmin.nic.in/annualrep/AR06-07-11.pdf) 228 India embroidered and crocheted goods exports Rs 3570.12 Crore in 2011-2012 (Review Exports During 2011-2012 (April-January), 2012, Export Promotion Council for Handicrafts, http://www.epch.in/EXPORTData.pdf) 229 J&K Bank to act as nodal agency for credit to artisans, J&K Bank

66 Embroidery (Tilla)
Market Opportunity Embroidered Tilla gold or silver thread embroidery on womens garments, traditionally for the purpose of weddings) Geographical Location Rural and urban areas Potential Market Size Local export market Rs. 4,117.84 crore230 National export market Rs. 3,570.12 crore231 Key Customer Segments Local consumers, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12 the production of embroidery for tilla in Kashmir was Rs. 7.62 crore. Youth entrepreneurs benefit from access to raw materials, availability of skilled human labour, low input costs, high market demand as well as government trainings, incentives and schemes. However, as with all Kashmiri craftmanship, youth entrepreneurs will return their greatest advantage by incorporating both tradition and innovation in their creative designs. The Craft Development Institute (CDI) is a government program sponsored by the Ministry of Textiles which trains individuals in embroidery work done by hand232. The Women Development Corporation (WDC) also trains women in this handicraft and provides them with financing at substantially low interest rates of 4 percent.

230

Kashmir Embroidered goods export 4117.84 crore Rs (2006-2007) (Annual report 2006-07 CHAPTER XI HANDICRAFTS, 2007, Ministry of Textiles, http://texmin.nic.in/annualrep/AR06-07-11.pdf) 231 India exports of embroidered and crocheted goods Rs 3570.12 Crore in 2011-2012 (Review Exports During 2011-2012 (April-January), 2012, Export Promotion Council for Handicrafts, http://www.epch.in/EXPORTData.pdf) 232 http://www.kashmircorps.org/reports_files/2009-2010%20Vocational%20Opportunities.pdf

67 Kashmiri Wool Carpets

Market Opportunity Kashmiri Wool Carpets Geographical Location Rural and urban areas Potential Market Size Local market Rs. 561.27 crore233 National export market Rs. 3,674.86 crore234 International market Rs. 972,192 crore235 Key Customer Segments Local consumers, local commercial businesses and government departments, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, local production for 2011-12 was Rs. 580.27 crore, the export of Kashmiri carpets was Rs. 412.45, and the sector employed 96,580 artisans directly. The advantage of producing carpets in Kashmir is that raw materials of silk and wool are easily accessed and are also organic and eco-friendly. A large number of skilled and semi-skilled workers are associated in production/manufacturing of these handicraft goods in Kashmir. Therefore, human labour is readily available. The state government provides loans of up to Rs. 100,000 with 10% interest subsidy for a period of 5 years. With the help of the state government, the traditional carpet looms are being replaced with modern carpet looms as well. As of 2011, the state replaced 39 looms with modern looms and expected to replace the remaining 35 looms by summer 2011236. Additionally, entrepreneurs should consult the specialized finance schemes offered by the J&K bank.

233

Kashmir carpet production 2008-2009 Rs 561.27 Crore (Digest of Statistics 2008-2009, 2009, Directorate of Economics & Statistics Government of Jammu & Kashmir) 234 Indian exports of carpets, rugs (including namdas), (CPECs Role,2012, Carpet Export Promotion Council, http://www.indiancarpets.com/node/11) 235 $197.6 billion global demand for flooring and carpet (World Flooring and Carpets Market, 2011, Report Linker, http://www.reportlinker.com/p099484-summary/World-Flooring-and-Carpets-Market.html) 236 Handicraft exports from J&K touch all-time high, The Financial Express, 2011, http://www.financialexpress.com/news/handicraft-exports-from-j&k-touch-alltime-high/796250/

68 Kashmiri Crewel Curtains


Market Opportunity Kashmiri Crewel Curtains Geographical Location Rural and urban areas Potential Market Size Local market Rs. 166.49 crore237 Key Customer Segments Local consumers, local commercial businesses and government departments, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12 Kashmiri Crewel overall production was Rs. 231.18 crore, export was Rs. 154.00 crore and the industry employed 37,429 artisans directly. Crewel is a unique type of embroidery specific to the Kashmir culture implemented with a pointed hook used for drapery and upholstery. Crewel is embroidered on thick materials for furnishings and usually employs flowing, floral designs. There is a high demand in the export market for crewel embroidery; yet, youth entrepreneurs should pay attention to the ever-changing tastes of the international market and market their designs appropriately. Entrepreneurs should remain innovative by reinvigorating this beautiful Kashmiri craftmanship through fashionable colours, fabrics and designs. Kashmir Crewel designs face the advantage of low raw material costs and availability of skilled human labour. Additionally, the state government provides trainings and skill development through organised corporations. Youth entrepreneurs should also consult the Handicrafts Department for government schemes as well as specialized financial schemes offered by J&K Bank for the development of the handicrafts sector. News Links KVIB to train Kashmir women in crewel and Namda crafts, OneIndia News, 2008, http://news.oneindia.in/2008/09/06/kvib-totrain-kashmir-women-in-crewel-and-namda-crafts-1220684826.html

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Kashmir Crewel production Rs 166.49 Crore 2007-2008 Digest of Statistics 2008-2009, 2009, Directorate of Economics & Statistics Government of Jammu & Kashmir

69 Kashmiri Wool Scarves, Socks, Sweaters, Tweed Blazers, and etc.


Market Opportunity Kashmiri Wool Scarves, Socks, Sweaters, Tweed Blazers, and etc. Geographical Location Rural and urban areas Potential Market Size Local market Rs. 100 crore238 International market Rs. 393,600 crore239 Key Customer Segments Local consumers, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12 production of Kashmiri organic wool products as a whole was 67 lakh kilograms. In Kashmir, only one lakh kg out of 67 lakh kg are processed for making woollen clothes (i.e. scarves, socks, sweaters, tweed blazers, and etcetera) in both private and government sectors. Therefore, there are only a small number of businessmen taking advantage of the access to raw materials and skilled human labour in the region. The state has the potential to produce woolen cloths worth Rs. 300 crore annually, but it still lacking in productivity currently reaching only Rs. 100 crore annually240. Youth entrepreneurs will experience great advantages due to low startup costs, access to raw materials, skilled human labour and a high, yet unmet, potential market size. Additionally, government training, schemes and incentives as well as J&K specialized finance schemes aimed at development of the handicraft sector provide greater advantage for entrepreneurships in production of wool products.

238

Every year the state imports woolen and textile fabrics like tweeds, blankets, blazers made of the state raw material from Punjab and Haryana for Rs 100 crore. He said, If the state government takes concrete steps to utilize the raw wool it would create jobs both in private and public sector. Sources said the state annually purchases woolen textiles, which could have been easily manufactured here in the valley both in private and public sector. (Kashmir Wool Industry In Shambles, 2009, Greater Kashmir http://www.jammu-kashmir.com/archives/archives2009/kashmir20090215d.html) 239 Total retail value of sales of wool products is around US$80 billion yearly (International Wool Textile Organisation, 2012, IWTO, http://www.iwto.org/objectifs/) 240 http://www.greaterkashmir.com/news/2009/Jan/2/kashmir-wool-industry-suffers-for-want-of-infrastructure-23.asp

70 Namdas and Gabbas

Market Opportunity Namdas and Gabbas Geographical Location Rural and urban areas

Potential Market Size Local market (namdas) Rs. 4.69 crore241 Local export market (namdas) Rs. 2.6 crore242 National export market (carpets) Rs. 3,674.86 crore243 International market Rs. 972,192 crore244 Key Customer Segments Local consumers, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12 production of namdas and gabbas in Kashmir was Rs. 7.70 crore and the sector employed 3,196 artisans directly. This cottage industry is concentrated in Anantnag, Rainawari and Baramula districts. Though the demand in export markets for these products is waning, youth entrepreneurs possess access to raw materials, availability of local, skilled human labour and capacity to revitalize the industry through modern designs and innovative marketing strategies. The state government provides opportunities to participate in selected international fairs and exhibitions on a regular basis which helps the sector to expand its market base. Youth entrepreneurs should consult the department of handicrafts as well as the J&K Bank for incentives and schemes directed for the development of the handicraft sector.

241

Kashmir Namda production Rs 4.69 Crore in 2007-2008, (Digest of Statistics 2008-2009, 2009, Directorate of Economics & Statistics Government of Jammu & Kashmir) 242 IBID 243 Indian exports of carpets, rugs (including namdas), (CPECs Role, 2012,Carpet Export Promotion Council, http://www.indiancarpets.com/node/11) 244 $197.6 billion global demand for flooring and carpet (World Flooring and Carpets Market, 2011, Report Linker, http://www.reportlinker.com/p099484-summary/World-Flooring-and-Carpets-Market.html)

71 Papier-Mache Products (boxes, bangles, Christmas ornaments, table lamps and etc.)
Market Opportunity Papier-Mache Products (boxes, bangles, Christmas ornaments, table lamps and etc. Geographical Location Rural and urban areas Potential Market Size Local market Rs. 34.86 crore245 Local export market Rs. 41 crore246 International market Rs. 16,236 crore247 Key Customer Segments Local consumers, national and international tourists, national and international traders and wholesalers Advantage Kashmir In 2011-12 the overall production of papier-mache products was Rs. 87.22 crore, export was Rs. 66.5 and the industry employed 4,862 artisans directly, according to the Directorate of Handicrafts, Government of J&K. Though the current demand for papier-mache is waning due to outdated designs and lack of interest, youth entrepreneurs possess great potential for success through appropriate marketing startegies. The international demand for papier-mache boxes, bangles, Christmas ornaments, table lamps, and etc. would be very high if designs catered to modern tastes. Therefore, entrepreneurs should research growing trends to bridge the generational gap between the rich, cultural tradition of papier-mache products and the current modern market. Due to availability of raw materials and skilled human labour, entrepreneurs face the advantage of minimal startup costs and can focus their business plan on innovative marketing strategies. The Department of Handicrafts and J&K Bank should also be consulted regarding incentives, training and schemes offered for the development of the handicrafts sector.

245

Kashmir Papier mache production Rs 34.86 crore in 2008-2009 (Digest of Statistics 2008-2009, 2009, Directorate of Economics & Statistics Government of Jammu & Kashmir) 246 Kashmir Exports of Papier Mache, 41 crore in 2008-2009 (IBID) 247 Paper and memory crafts sales valued at $3.3 billion in 2010 (CHA Announces 2010 Craft Industry Statistics, Craft PR, 2011, http://craftandhobby.wordpress.com/2011/04/06/cha-announces-2010-craft-industry-statistics/)

72 Shawls Pashmina, Woollen

Market Opportunity Shawls Pashmina, Woollen Geographical Location Rural and urban areas Potential Market Size Local market Rs. 254 crore248 Local export market Rs. 152.62 crore249 International market Rs. 181.98 crore250 Key Customer Segments Local consumers, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12, local production of shawls was Rs. 560.58 crore, export was Rs. 302 crore and the sector employed 103,430 artisans. Pashmina/woolen shawls are made from the finest cashmere wool in the world. It is combed from the underside of the Himalayan mountain goat, which is indigenous to the mountains of central Asia.251 Kashmiri shawls are well known for their luxurious quality and beautiful embroidered designs which adorn the pashmina. There is great opportunity for youth entrepreneurs to make use of innovative technology and creative, modern designs in order to cater to the international market. Artisans usually weave a carpet or a shawl during the winter season due to long periods of indoor confinement. Youth entrepreneurs can use this time to contemplate the best marketing strategies as well as to perfect their designs. J&K Bank and the State Handicraft Department offer various schemes and incentives for artisans in this sector, one of which offers health/group insurance coverage to artisans. Kashmiri shawls are eco-friendly, made from organic, raw materials and are in high demand both nationally and internationally. News Links RFIT to emboss Kashmiri Shawls smarter, Fibre2Fashion, 2010, http://www.fibre2fashion.com/news/handicraftsnews/newsdetails.aspx?news_id=94001

248

Kashmir woollen shawl production Rs 254 crore in 2008-2009 (Digest of Statistics 2008-2009, 2009, Directorate of Economics & Statistics Government of Jammu & Kashmir) 249 Shawls Kashmir Export 152.62 crore (2006-2007) (Annual report 2006-07 CHAPTER XI HANDICRAFTS, 2007, Ministry of Textiles, http://texmin.nic.in/annualrep/AR06-07-11.pdf) 250 India Shawls Export Rs 181.98 Crore 2011-2012 (Review Exports During 2011-2012 (April-January), 2012, Export Promotion Council for Handicrafts, http://www.epch.in/EXPORTData.pdf) 251 Pashmina, Pashmina Golden, http://www.pashminagolden.com/pashmina/PASHMINA/Pashmina_cashmere_pashmina.htm

73 Wood Carving
Market Opportunity Wood Carving Geographical Location Rural and urban areas Potential Market Size Local market Rs. 33.59 crore252 Local export market Rs. 803.72 crore253 National export market Rs. 1,021.05 crore254 International market Rs. 16,344.24 crore255 Key Customer Segments Local consumers, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12 the wood carving industry produced Rs. 52.19 crore, export was Rs. 36.75, and 4,308 artisans were employed directly. Youth entrepreneurs in Kashmir possess great access to local raw materials, specifically walnut wood, that remains unique to the state of Kashmir. Additionally, the availability of skilled human labour with knowledge of traditional carvings can be utilized in order to expand the enterprise. Many products can be created using wood carvings including household items, decorations and furniture. Though many wood manufacturers are using machinery for mass production, the demand for skilled hand-craftsmanship remains in high demand in the local, national and international markets. Hand-crafted wood carvings are also greater eco-friendly alternatives for manufacturing. Entrepreneurs can save the art of hand-crafted wood carvings in Kashmir by combining traditional designs with modernised marketing strategies in order to expand the handicraft market size. By conducting online research of the current highest selling products in the wood carving industry, entrepreneurs will be able to cater to the local, national and international market more appropriately. The Department of Handicrafts and J&K Bank should also be consulted regarding incentives, training and schemes offered for the development of the handicrafts sector.

252

Kashmir Wood carving production Rs 33.59 crore, 2007-2008 (Digest of Statistics 2008-2009, 2009, Directorate of Economics & Statistics Government of Jammu & Kashmir) 253 Woodware Kashmir export 803.72 crore Rs (2006-2007) (Annual report 2006-07 CHAPTER XI HANDICRAFTS, 2007, Ministry of Textiles, http://texmin.nic.in/annualrep/AR06-07-11.pdf) 254 India Woodwares export Rs 1021.05 Crore 2011-2012 (Review Exports During 2011-2012 (April-January), 2012, Export Promotion Council for Handicrafts, http://www.epch.in/EXPORTData.pdf) 255 International woodworking sales $3.322 billion in 2010 (CHA Announces 2010 Craft Industry Statistics, Craft PR, 2011, http://craftandhobby.wordpress.com/2011/04/06/cha-announces-2010-craft-industry-statistics/)

74 Silverware and Silver Jewellery


Market Opportunity Silverware and Silver Jewellery Geographical Location Rural and urban areas Potential Market Size National export market Rs. 359.47 crore256 International market Rs. 6,888 crore257 Key Customer Segments Local consumers, local commercial businesses and government departments, national and international tourists, national and international traders and wholesalers Advantage Kashmir According to the Directorate of Handicrafts, Government of J&K, in 2011-12 production of silverware and imitation jewellery was Rs 0.05 crore. Youth entrepreneurs benefit from access to raw materials, availability of skilled human labour, low input costs, high market demand and the long-standing tradition of production/manufacturing of silverware and silver jewellery in the region. By combining the traditional handicraft skills of Kashmir with modern, alternative marketing and designs, youth entrepreneurs can enhance productivity in Kashmir and cater to the growing international market.

256

India export jewelry Rs 359.47 crore 2011-2012 (Review Exports During 2011-2012 (April-January), 2012, Export Promotion Council for Handicrafts, http://www.epch.in/EXPORTData.pdf) 257 International jewelry sales $1.440 billion in 2010 (CHA Announces 2010 Craft Industry Statistics, Craft PR, 2011, http://craftandhobby.wordpress.com/2011/04/06/cha-announces-2010-craft-industry-statistics/)

75

76

Information Technology

Information technology (IT) is emerging as a crucial and transformative sector in the socioeconomic development of Kashmir. Realizing the growing importance of this fast means of service, the government of Jammu and Kashmir [aims] to promote the use of information technology to make all the government services accessible to the citizens and to ensure its efficieny, transparency and stability to meet the basic needs of the common man.258 In 2004, the J&K IT Policy259 entitled all IT, hardware, software and service industries to Industry status. The purpose of this government policy is to increase the use of IT in all sectors and to make it a sunrise industry. Initiatives of the policy strive to increase the use of IT in government functioning and local industries to increase
258

Jammu and Kashmir Economic Survey, (Directorate of Economics and Statistics, Government of Jammu and Kashmir), 2010-11 259 Jammu and Kashmir, April 2010, India Brand Equity Foundation, 2010 http://www.ibef.org/download/Jammu_&_Kashmir_060710.pdf

77
competitive advantages and transparent governence to citizens. In order to expand the local job market and capacity of unemployed, educated youth, the policy encourages IT use in schools, colleges and educational institutions. Localisation of software development will percolate benefits of the IT sector in local languages as well as English. health and e-commerce in the state. The J&K IT Policy (2004) offers interest subsidy schemes applicable for both computer hardware and software sectors as available to other industries. The IT software and services industry is now treated as industrial consumers and therefore, electricity tariff applicable to the industrial consumers is to be levied. Additionally, the policy permits IT software units to be set up in residential areas, subject to electricity load restrictions. In order to increase financial availability for entrepreneurs, the policy mandates that state financial institutions and banks treat the IT hardware, software and IT services as priority sectors. Furthermore, the government agreed to create a venture capital fund of $5.4 million USD in association with financial institutions to meet equity requirements of small and medium enterprises/IT startups. A special incentive package is offered to projects whose total investment exceeds $2.2 million USD. Finally, the state government agreed to fix uniform sales tax on all IT products including computers and accessories. As a result of this policy and other government schemes, numerous business opportunities arise daily for aspiring entrepreneurs in Kashmir. The following market opportunities for IT aim to generate knowledge of youth entrepreneurs in regards to the vast range of business enterprises in the IT sector. And through government subsidies and incentives, adequate infrastructure for IT development holds the potential to improve e-tourism, e-

78 Business Process Outsourcing/IT Outsourcing


Market Opportunity Business Process Outsourcing (BPO)/IT Outsourcing (ITO) Geographical Location Urban areas Potential Market Size National market Rs. 431,690 crore260 International market Rs. 521,679 crore261 Key Customer Segments Publishing houses, educational institutes, libraries, government departments, domestic telecom service providers, financial institutions serving national and international clients Advantage Kashmir The IT-BPO sector has become a significant catalyst in the growth of Indias economy and holds the same promise for advancing the economic status of Kashmir. The ITO/BPO sector makes intensive use of human capital which is abundantly available in Kashmir which currently has over 400,000 unemployed college educated youths. In addition, an estimated 4 million people will enter the job market in J&K between 2012-2022262. These Kashmiri youth are often multilingual, possessing a range of languages including English, Kashmiri, Urdu, Hindi, Arabic and Persian. This makes Kashmir an attractive destination for language translation and transcription services. These advantages coupled with the ever-increasing internet/broadband penetration and government support makes ITBPO a very promising market opportunity in Kashmir. News Links IT-BPO industry sees strong growth: NASSCOM, CIOL Making IT Your Advantage, 2011 http://www.ciol.com/news/bpo/newsreports/it-bpo-industry-sees-strong-growth-nasscom/146342/0/

260

The IT-BPO Sector in India: Strategic Review 2011, Nasscom, 2011; natl market size IT-BPO sector $88.1 billion USD in 2011 http://www.nasscom.in/sites/default/files/researchreports/Exec%20Summary_0.pdf 261 Indian IT-BPO Industry FY2011 Performance and Future Trends, Nasscom, 2011; intl market size IT-BPO sector $106 billion USD in 2010 262 Youth see unemployment as revolting challenge, 2011, F.Aslam, http://greaterkashmir.com/news/2011/Mar/24/youthsee-unemployment-as-revolting-challenge-56.asp

79 E-commerce Solutions

Market Opportunity E-commerce Solutions for Businesses

Geographical Location Urban areas Potential Market Size National market Rs. 29,520 crore263 International market Rs. 3,498,120 crore264 Key Customer Segments Local, national and international businesses (including hotels, realestate, retail stores, handicraft industries) Advantage Kashmir E-commerce has not yet taken off in Kashmir, but the government's commitment to the creation of "back-hall" broadband infrastructure would give a significant boost to e-commerce. Kashmir has a large number of products and services that interest people from all parts of the world. Developing business models, particularly for handicrafts, tourism and agribusiness in Kashmir, by integrating e-commerce can significantly help these businesses reach the global market. "The coming years will see the emergence of new retailers in Kashmir, including hypermarkets, department stores, supermarkets, cash and carry, and specialty stores. However, these retailers shall be 'virtual' ones rather than physical ones."265 This market opportunity requires relatively small amounts of startup capital and can tap into the wealth of unemployed college graduates that currently number over 400,000266.

263

Shetty, Vhaibhav, Where does eCommerce Stand in India?, Chilli Breeze, 2011 (data estimated in article from combined sources on eCommerce statistics for 2011) http://www.chillibreeze.com/articles_various/ecommerce-India.asp 264 Badran, Souheil, What Merchants Need to know about Cross Border eCommerce, First Data White Paper, 2008 (data estimated in paper from combined sources on eCommerce statistics forecast for 2011) 265 E-tailing in India to touch USD 70 billion by 2020: Technopack, The Financial Express, 2012, http://www.financialexpress.com/news/etailing-in-india-to-touch-usd-70-billion-by-2020-technopak/909608/0 266 Youth see unemployment as revolting challenge, 2011, F.Aslam, http://greaterkashmir.com/news/2011/Mar/24/youthsee-unemployment-as-revolting-challenge-56.asp

80 E-Learning
Market Opportunity E-Learning Geographical Location Potential Market Size Urban areas National market Rs. 1771.2 crore267 International market Rs. 157,932 crore268 Key Customer Segments Local, national and international schools, colleges, universities and businesses and individual students and professionals Advantage Kashmir The e-learning market is growing at an annual rate of 12.8%. From this growth rate, one can easily imagine the growth potential of an Elearning business. According to other estimates, by 2014, E-learning professionals are going to be the highest paid professionals in the IT industry. A large number of schools and colleges in the Kashmir Valley are establishing E-learning enabled virtual classrooms. It includes multimedia assistance and IT-supported learning solutions. Poor infrastructure in Kashmir has proved to be an advantage for companies offering e-learning courses and solutions and its growth can steadily pick up the pace owing to certain key drivers. These include the expansion of e-learning in schools and universities who are increasingly offering web-based learning and greater access to the national and international markets. The Indian market is huge with internet users numbering over 4 crore269. In the global market twothirds of the market is for off-the shelf products, with the main markets being in the US and the UK270. Like other IT businesses, entrepreneurs founding an e-learning enterprise will have no shortage in finding an adequate labor force with over 400,000 college graduates currently employed in Kashmir271.

267 268

269
270

e-Learning India, Research on India, 2009 The Worldwide Market for Self-paced eLearning Products and Services: 2010-2015 Forecast and Analysis, Ambient Insight, 2010 http://www.ambientinsight.com/Reports/eLearning.aspx - market size for 2010 but global eLearning market expected to reach Rs. 245,508 crore by 2014

Corporate E-learning Market to Touch $23 billion by 05: Nasscom, The Financial Express, 2003, http://www.financialexpress.com/news/corporate-elearning-market-to-touch-23-b-by-05-nasscom/91422/0 271 Jose, Reema, C Jayanthi, Investing in e-learning proves to be lucrative, The Financial Express, 2008, http://www.financialexpress.com/news/investing-in-elearning-proves-to-be-lucrative/314400/0

81 Graphic Design

Market Opportunity Graphic Design Geographical Location Urban areas Potential Market Size International market Rs. 203,688 crore272

Key Customer Segments Local, national and international businesses Advantage Kashmir Outsourcing is equally applicable to the graphic arts industry. Graphic Process Offshoring (GPO) will enable emerging Kashmiri entrepreneurs in graphics art industry to deliver solutions across geographies and compete globally. While the significant reduction in process costs out of an Kashmir-based operation can prove to be an initial driver for offshoring, the availability of skills, the emergence of hi-speed internet and telecom infrastructure and the coming-of-age of digital workflow platforms and standards in the graphics production environment will all contribute to creating a mature environment for the development of GPO in Kashmir.

272

Global Graphic Designers: Market Research Report, IBISWorld, 2011 - http://www.ibisworld.com/industry/global/globalgraphic-designers.html

82 IT Hardware Service Centres


Market Opportunity IT Hardware Service Centres

Geographical Location

Urban areas

Potential Market Size National market Rs. 69,864 crore273 International market Rs. 4,172,160 crore274 Key Customer Segments Local commercial businesses and computer owners and public computer service centres Advantage Kashmir As the use of IT is becoming indispensable across all business sectors and with the growing complexity of computer networks, hardware support services can be seen as a huge market opportunity in the IT sector of Kashmir. According to Samir Ahsan, CEO of Infinity Access in Kashmir, there are already around 30,000 enterprises registered in Kashmir. Besides these, every new entrepreneur who registers his business in Kashmir is seen as a potential customer in terms of hardware support services275. With the digital revolution and an ever-increasing preference for IT systems and solutions, aspiring entrepreneurs can provide hardware support services to a large number of Kashmir organizations like banks, government departments and universities, as well as to the computer owning public.

273

Calculation for 2009-2010 - Information Technology Annual Report 2010-2011, Government of India, Ministry of Communications & Information Technology, Department of Information Technology, 2011 274 Estimate based on global spending on IT Services in 2011 - Forecast Alert: IT Spending, Worldwide, 2008-2015, 4Q11 Update: 1886414, Gartner Research, 2012 - http://www.gartner.com/technology/research/it-spending-forecast/ 275 Samir Ahsan, CEO Infinity Access, a leading Kashmir-based Hardware support services enterprise

83 Internet Portals

Market opportunity Internet Portals Geographical Location Rural and urban Areas

Potential Market Size Data not available Key Customer Segments Internet consumers and advertisers Advantage Kashmir As Kashmirs tourism industry is on the rise, a significant market size exists for vertical internet portals dealing with travel and tourism. Other potential market segments include vertical portals for jobs and shopping. Shopping portals can be customized to leverage the local handicrafts, agribusiness and retail industries. Internet portals able to tap the national and international audience advertising local market products are sure to register success and growth in Kashmir. Due to small input costs and seed capital, this venture will prove highly beneficial for an aspiring entrepreneur.

84 IT Education and Training

Market Opportunity IT Education and Training Geographical Location Urban areas Potential Market Size International market Rs. 20,172 crore (2005)276 Key Customer Segments Local businesses and secondary schools, university and college students Advantage Kashmir Developing innovative IT training curriculum with the use of multimedia-supported classrooms and online platforms can really enhance the employability of the youth in Kashmir. The states youth population numbers over 6 lakh, 4 lakh of which are college educated277. The seven universities and hundreds of colleges across the valley offer a great market for the delivery of customised IT trainings. In addition, the development of off-the shelf products and On-Job IT trainings can be successfully marketed to government departments and the 30,000 registered businesses that make up the private sector.

276

Foote Partners IT Skills Pay Research: Methodology, Research Demographics, Geographical Scope, and Definitions: 2005 Quarterly IT Insider Compensation Series, Foote Partners, LLC: Foote Research Group, 2006 277 Youth see unemployment as revolting challenge, 2011, F.Aslam, http://greaterkashmir.com/news/2011/Mar/24/youthsee-unemployment-as-revolting-challenge-56.asp

85 Knowledge Process Outsourcing (KPO)


Market Opportunity Knowledge Process Outsourcing (KPO) Geographical Location Urban areas National market Rs. 58,800 crore278 International market Rs. 83,640 crore279 Key Customer Segments Local, national and international firms working in the sectors of Information Technology (IT), Information Technology Enabled Services (ITES), Legal Processes, Intellectual Property and Patent related services, Engineering services, Web Development application, CAD/CAM applications, Business Research and Analytics, Legal Research, Clinical Research, Publishing, Market Research and etcetera

Potential Market Size

Advantage Kashmir Knowledge Processing Outsourcing (KPO) is emerging as a new sector that promises to provide long-term jobs for intellectual, analytical and knowledgeable people with pay scales much higher than the BPO sector. Skilled, educated labor is available across Kashmir with over 45,000 professionals presently unemployed280. This skilled, trained manpower is accessible at relatively low costs. The most potential KPO activities holding the most potential include: medical services, legal services, data analytics, Business & Market Research etc. News Links Legal Process Outsourcing, Greater Kashmir, 2011, http://www.greaterkashmir.com/news/2011/Jul/8/legal-processoutsourcing-29.asp

278

Ray, Rupsa. Higher Margins makes KPO Biz Hot Avenue, Financial Express Online, 2009 http://www.financialexpress.com/news/higher-margins-makes-kpo-biz-hot-avenue/432438/2 - estimate based on Nasscom predictions for 2010 market size. 279 IBID
280

Over 45,000 professionals unemployed in J&K , http://articles.economictimes.indiatimes.com/2010-1005/news/27610427_1_unemployed-youth-professionals-engineers

86 VLSI Design and Development Training

Market Opportunity VLSI Design and Development Training Geographical Location Urban areas Potential Market Size National market Rs. 36,900 crore (2010)281 International market Rs. 838,860 crore (2008)282 Key Customer Segments Local engineering students and IT professionals

Advantage Kashmir Offering VLSI Design & Development training to young Kashmiri engineers and IT professionals can facilitate their entry into a very lucrative job market of embedded system and VLSI design. Young entrepreneurs can also take advantage of the Special Manpower Development Programme in VLSI Design & related Software of the Department of IT which aims at setting up high-end VLSI design destinations.

281

India's VLSI and embedded systems design market to reach $10.2B in 2012, EE Herald, 2011 http://www.eeherald.com/section/news/nwss201104053.html Expected to reach Rs. 50,184 crore in 2012 282 nd Parmar, Jayesh. VLSI Market in India, 22 International Conference on VLSI Design (New Delhi, India), 2009. http://vlsiconference.com/vlsi2012/

87 Software Development
Market Opportunity Software Development Geographical Location Urban areas Potential Market Size National market Rs. 55,596 crore283 International market Rs. 1,313,640 crore284 Key Customer Segments Local, national and international businesses and organizations

Advantage Kashmir Inspite of an ever-increasing domestic and global demand, Kashmirbased software development companies that deliver well-designed, manageable software development solutions including, planning, design, coding, release management, quality assurance testing, training, deployment, and support are very rare. Young IT entrepreneurs can also focus on highly qualitative, timely delivered and cost-effective offshore software development. SaaS (software as a service) has become a common delivery model for most business applications, including accounting, collaboration, customer relationship management (CRM), enterprise resource planning (ERP), invoicing, human resource management (HRM), content management (CM) and service desk management285. Software as a Service (SaaS) should be incorporated into the strategy of all existing and upcoming enterprise software companies in Kashmir. "IT Software and IT Services shall be deemed as manufacturing activities for the purpose of incentives for the industry in line with the approved policy of the Government of India. Depreciation norms and loans for capital investments and working capital requirements would be made attractive. All promotional and liberalized policy instruments available to the IT Software and IT Services would also be made available to the IT enabled Services including the Information Content Industry."286 News Links Software parks will create 10,000 jobs in JK, Greater Kashmir, 2011, http://www.greaterkashmir.com/news/2011/May/16/-softwareparks-will-create-10-000-jobs-in-jk--17.asp

283 284

Indian IT-BPO Industry FY2011 Performance and Future Trends, NASSCOM, New Delhi, 2011 Information Management Driving Global Software Market, Information Age: News, Analysis & Insight for IT & Business Leaders, 2011 - http://www.information-age.com/channels/information-management/perspectives-andtrends/1635088/information-management-driving-global-software-market.thtml 285 "Software as a Service (SaaS)" Cloud Taxonomy. OpenCrowd. http://cloudtaxonomy.opencrowd.com/taxonomy/software-as-a-service/ 286 IT Policy, 2004, Govt. of J&K

88 Mobile Apps
Market Opportunity Mobile Apps Geographical Location Urban areas Potential Market Size National market Rs. 560 crore (2009)287 International market Rs. 86,100 crore (2012)288 Key Customer Segments Smart phone users, national and international mobile phone companies and other web platforms

Advantage Kashmir Technology forecasters are predicting that laptops and PCs will be replaced by mobile phones in coming years and to fulfill that mobile application development is highly necessary. The number of smart phones being used around the world will grow to 1 billion by 2016289 and the number of apps available is ever-increasing, with 225,000 presently available on Apples app-store alone290. Apps can be produced relatively inexpensively for as little as Rs. 77,000291. Kashmir has an ever-increasing number of developers and programmers. And picking a great team is one of the key ingredients to building a successful App business. The strategy is to hire programmers who are hungry to learn and adapt to the mobile space. This will take some time though, so the plan should be to hire people now for an app you are planning on delivering by this time next year. By following this mode a sustained pipeline of skilled workforce can be maintained.

287

Chawla, Mehak. Enterprise Mobile Applications: Not Yet Upwardly Mobile, Dataquest India, 2009. http://dqindia.ciol.com/content/dqtop20_09/IndustryAnalyses/2009/109081308.asp 288 Sharma, Chetan. Sizing up the Global Mobile Apps Market, Chetan Sharma Consulting, 2010. 289 http://www.siliconindia.com/news/techproducts/2016-to-Have-A-Billion-Smartphone-Users-nid-105895-cid-31.html 290 Start Ups, Start your own: Mobile Apps business, 2012, http://www.startups.co.uk/mobile-apps-business_1.html 291 IBID

89 Website Design and Development


Market Opportunity Website Design and Development Geographical Location Urban areas

Potential Market Size National market Rs. 4,920 crore International market Rs. 492,000 crore292 Key Customer Segments Local, national and international businesses and organizations

Advantage Kashmir In a modern business scenario, having a website is an indispensable part of a business corporate identity. There are around 30,000 businesses registered in Kashmir and around 130 lakh medium and small enterprises in India293. Delivering cost effective custom websites, customized high-quality content development and other support services can really open up a whole new BoP (Bottom of Pyramid) market in the IT sector for young tech-entrepreneurs in Kashmir.

292 293

The Animation and Gaming Industry in India, NASSCOM, 2009 market sizes predicted for 2012 http://www.smeindia.net/export_schemes/OverviewofMSME.html

90 Social Networking (PR 2.0)/Advertising and PR


Market Opportunity Social Networking (PR 2.0)/Advertising and PR Geographical Location Urban areas Potential Market Size International market Rs. 1,057,800 crore294 Key Customer Segments Local, national and international businesses and organizations

Advantage Kashmir PR 2.0 is a new approach to public relations effectively using websites, search engines, social networking platforms, blogs, RSS feeds, YouTube, etc. It is created with appropriate keywords sprinkled liberally throughout in order to enhance accessibility to greater markets. Once the marketing strategy has been composed, the PR is distributed via an online release service, which allows for tags and hyperlinks. The release is also posted to a news section of the client website so that the release can be linked back to the original site. Tech-entrepreneurs and convergent journalists in Kashmir PR 2.0 start-ups can serve the ever-increasing businesses and help them to better reach their clients, creating stronger and more credible customer relations. As a result of the continuously improving access to high speed internet in Kashmir, the availability of a large, highly skilled workforce and low start up costs youth entrepreneurs are provided with advantages for setting up PR 2.0 businesses.

294

Wealth-X Finds Combined Net Worth of Social Media Tycoons Near $100 Billion, PR Newswire: United Business Media, 2011

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92

Tourism

Tourism plays an important role in the economy of the state and has recently been declared as a major industry and a priority sector for the 11th Five Year Plan by the government of J&K. Tourism proves vastly important in the state of Jammu and Kashmir due to its ability to conserve the cultural heritage, boost the economy and provide market opportunities for women and youth through vocational skills training and development. Considering the economic returns and comparatively light investments, tourism market opportunities offer great potential for aspiring entrepreneurs. In 2008, 572,630 tourists visited the state295 to visit the picturesque beauty, snow-covered mountains and natural lakes surrounded by beautiful pine forests and flowing rivers. Jammu is famous for its temples while Kashmir Valley is known for its lakes and gardens. The government of J&K has declared tourism as a priority sector with the promise of an earmark investment of Rs. 396.77 crore in the 11th Five Year Plan. According to the Economic Survey of J&K in 2010-2011, tourism generates employment, providing direct or indirect employment for 30% of the population. As one of the key revenue earning sources, it ranges from Rs. 21 Rs. 22 crore which records an increase of 57% from 2004-2010. The government has created centrally sponsored schemes in coordination with the tourism sector; however, J&K Bank also offers the Help Tourism Scheme in order to boost

295

Jammu and Kashmir Digest of Statistics, (Directorate of Economics and Statistics, Government of Jammu and Kashmir), 2008-09.

93
development of the sector. This scheme provides hassle free credit for renovation and refurbishment of residential properties converted into tourist guest houses296. The following tourism market opportunities aim to inspire youth entrepreneurs to not only expand upon limited availability of existing tourism enterprises in Kashmir, but to also ignite the expansion of the tourism industry through innovative hospitality and business.

296

J&K Bank, http://www.jkbank.net/specialisedLoans.php#tourism

94 Adventure Tourism
Market Opportunity Adventure Tourism (i.e. renting mountain bikes; renting fishing equipment; renting golf gear; ski instruction; renting rock climbing gear; trekking guides; and etc.) Geographical Location Rural and urban areas Potential Market Size International market Rs. 437,880 crore (associated gear, apparel and accessories sales add additional Rs. 260,760 crore297 Key Customer Segments Local, national and international tourists Advantage Kashmir According to the J&K Development Report, the government has declared tourism to be an official industry as it largely contributes to the economy. Concessions and incentives to increase the industry have been expanded and developments such as high altitude golf courses have been made, but there is even greater potential for increases in adventure tourism. Adventure tourism serves as a major attraction for tourists. Popular places to visit for adventure sports include Gulmarg, Sonmarg, Pahalgam, Drass and etc. The local surroundings of high mountain ranges and flowing rivers through the valley offer great opportunities for fishing, golf, mountaineering, skiing, trekking, river rafting, paragliding, aero sports, backpacking, canoe trips, camping, kayaking and etc. Aspiring entrepreneurs would benefit from this opportunity due to low input costs of equipment and advertising while benefiting from ongoing financial returns on their investment. Tourists seek reliable tourism guides and businesses to provide guaranteed entertainment during their stay. Therefore, entrepreneurs should ensure credibility and quality through their advertising. To market adventure tourism, entrepreneurs should consider creating websites and additional advertising through social networking sites since most tourists will plan their trips prior to arrival in Kashmir. News Links Rock-climbing wall set to boost adventure tourism in Kashmir, SifyNews, 2011,
http://www.sify.com/news/rock-climbing-wall-set-to-boost-adventure-tourism-inkashmir-news-national-lmppkggdfgh.html

J&K Tourism Dept bags award in adventure tourism, Rising Kashmir, 2012, http://www.risingkashmir.com/news/jk-tourism-dept-bags-award-in-adventuretourism-22724.aspx

297

Estimate based on 2009 study surveying representative countries of Latin America, North America and Europe, regions which account for 72.8% of all international tourism expenditure Adventure Tourism Market Report, George Washington School of Business, Adventure Travel Trade Association, and Xola Consulting, 2010 http://www.platma.org/index.php/mod.publicaciones/mem.descargar/fichero.publicaciones_adventure_travel_market082610 _c1f8b584%232E%23pdf/chk.00d11cbf21fe02b3416ff2a2b8b14b11

95 Boutique Hotels/Bed & Breakfasts/Youth Hostels

Market Opportunity Boutique Hotels/Bed & Breakfasts/Youth Hostels Geographical Location Rural and urban areas

Potential Market Size Local market Rs. 296 crore298 National market - Rs. 84,870 crore299 Key Customer Segments National and international tourists

Advantage Kashmir In 2008, 572,630 tourists visited the Kashmir Valley with a total number of
only 451 registered huts/bungalows and hotels300. Additionally, when conducting an online search there is only one youth hostel advertised in the Valley located in Srinagar. There is great growth potential for tourist accommodations in Kashmir Valley. According to the J&K Planning Commission, there is a Hotel Management Institute that is available to train hard-working individuals to build specialized skill capacity and technical education. Additionally, the government offers packaged incentives to boost the tourism industry. For instance, 30% capital outright investment subsidies will be granted on fixed assets including cost of land for new tourism units as well as for the expansion of existing units. If a new unit invests Rs 25.00 crore or more in fixed assets then a capital outright investment subsidy of Rs 60 lakh would be give to it at the time of commission. Subsidy qualifiers include: cost of land and development; civil works (plumbing and internal electrification); modern kitchen equipment/refrigeration units; sewage disposal systems; air conditioning and central heating units; geysers and boilers301. Entrepreneurs should also consult the J&K Banks Help Tourism scheme which provides hassle free credit for the conversion of residential properties into tourist guest houses (renovation/refurbishment only). With skilled, cost-effective labour, as well as industry incentives such as tax exemptions/incentives, investment subsidies, finance availability at costeffective terms, and industry profitability, determined aspiring entrepreneurs could reap great reward through tourism accommodation enterprises.

News Links Jammu and Kashmir, April 2010, India Brand Equity Foundation, http://www.ibef.org/download/Jammu_&_Kashmir_060710.pdf

298

Calculation based on availability of 2200 beds per night in J&K (J&K Tourism Development Corporation: Best Place to Stay http://jktdc.co.in/about_us.php) multiplied by 365 days multiplied by average price per night of Rs. 3,690 India hotel market valued at $17.25 billion USD in 2009 representing 75% of overall hospitality industry market value of $23 billion USD KIT: The Indian Hospitality Industry, Business Standard, New Delhi, 2009 - http://www.business-standard.com/india/news/kitindianhospitality-industry/357714/ 300 Digest of Statistics 2008-09, Jammu and Kashmir Directorate of Economics and Statistics, Government of J&K, 2009 301 For more information and further incentives please visit the J&K Government Planning Commission State Plan http://planningcommission.nic.in/plans/stateplan/sdr_jandk/sdr_jkch4.pdf
299

96 Small Restaurants/Fast Food Kiosks

Market Opportunity Geographical Location Potential Market Size

Small Restaurants/Fast Food Kiosks Rural and urban areas National market Rs. 8,000 crore302 International market Rs. 3,321,000 crore303

Key Customer Segments Advantage Kashmir

Local end consumers in rural and urban areas, national and international tourists Fast food kiosks prove to be a compelling opportunity for Kashmiri entrepreneurs due to the advantages of small capital, few overheads and basic infrastructure requirements. While offering food on-the-go, there is no need to invest in seating space or great operational costs such as excess staff and large menus. The typical price of a kiosk values around Rs. 1 lakh and offers a great advantage of limited consumption of fuel, water and electricity304. Due to limited space, food will need to be precooked in a kitchen and then merely heated and served in the kiosk. As the number of national and international tourists to Kashmir continues to rise, these visitors serve as ideal customers for a fast food kiosk as their schedules will be busy, but they will be searching to taste the local cuisine. Raw materials are also easily at hand, depending on the type of food chosen to sell. The estimated overall investment is Rs. 13 lakh; therefore, the fast food kiosk model returns high profits and proves scalable and replicable. With simple menus and easy food preparation requirements, an aspiring entrepreneur could turn Kashmiri delicacies into a fast food franchise. Good Profits Come in Small Kiosks, Franchise India, 2009, http://www.franchiseindia.com/articles/Opportunity/Low-CostFranchise/Good-Profits-Come-In-Small-Kiosks-233/ Kannan, Swetha and Prayag, Anjali, Street food spruced up, The Hindu Business Line, http://www.thehindubusinessline.com/features/brandline/article2201 173.ece

News Links

302

Growing at CAGR of 35-40% annually - Destination Campus for F&B Brands, Franchise India, 2011 http://www.franchiseindia.com/articles/Franchise-Insights/Franchise-Trends/Destination-campus-for-F-B-brands-475/ 303 Global Fast Food Restaurants: Market Research Report, IBISWorld, 2011 http://www.ibisworld.com/industry/global/global-fast-food-restaurants.html 304 Kannan, Swetha and Prayag, Anjali, Street food spruced up, The Hindu Business Line, http://www.thehindubusinessline.com/features/brandline/article2201173.ece

97 Fresh Fruit Juice Stalls


Market Opportunity Fresh Fruit Juice Stalls Geographical Location Rural and urban areas

Potential Market Size National market Rs. 300 crore305 International market Rs. 310,944 crore306 Key Customer Segments Local population, targetting key locations outside of hospitals, gymnasiums, office spaces, universities, and etc. National and international tourists also serve as potential customers. Advantage Kashmir Similar to fast food kiosks, fresh fruit juice stalls require limited capital, few overheads and basic infrastructure, which offers the promise of high returns on investment. The typical kiosk/stall cost is Rs. 1 lakh; additionally, the start-up costs for juicing equipment and supplies remains small. With Kashmirs fruit production set to reach 40 lakh tonnes by 2014307, abundant availability of raw materials will reduce input costs on imports and increase overall output and returns. Kashmir fruit production includes apples, pears, cherries, apricots, strawberries and etc. In order to guarantee a large customer base, entrepreneurs should carefully consider the location of the juice stall. Health conscious customers as well as local passersby should be targeted outside of hospitals, gymnasiums, office spaces, universities, shopping areas and etc. According to a Bloom Juices market study in 2008, the average price per glass of juice at a roadside stall is Rs 20 Rs 40 with average sales per day ranging from 230 420 glasses. With determination and an organised business plan, an aspiring entrepreneur holds the potential to squeeze a great profit out of the fresh fruit juice stall market. News Links Kutty, Binesh, Juice bars chain: the coming of age, DARE Because Entrepreneurs Do, 2008 - http://dare.co.in/opportunities/retailfranchising/juice-bars-chain-the-coming-of-age.htm

305

Predicted steady growth of 35-40% per year - Kutty, Binesh, Juice bars chain: the coming of age, DARE Because Entrepreneurs Do, 2008 - http://dare.co.in/opportunities/retail-franchising/juice-bars-chain-the-coming-of-age.htm 306 Overall market for fresh fruit juice globally was US$79 billion in 2009 with fresh fruit juice bars/stalls accounting for 80% of that market Barkla, Charles, Fruit Juices Market News Service: Quarterly Edition Bulletin, Issue No. 1 2011, International Trade Centre, March 2011 307 Kashmirs fruit production to touch 40 Lakh Tons by 2014, Kashmir News Live http://www.kashmirnewslive.com/Business-News/kashmirs-fruit-production-to-touch-40-lakh-tons-by-2014.html

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Others
The following market opportunities could not be categorized in any of the above sections.

99 Hollow Cement Blocks


Market Opportunity Hollow Cement Blocks

Geographical Location

Rural and urban areas

Potential Market Size National market Rs. 72 lakh308 Key Customer Segments Local and national construction companies to be used for building new houses, boundary walls, shops, malls, hotels, government buildings and other construction works. Advantage Kashmir Hollow, cement/concrete blocks present an alternative to traditional and more expensive bricks. Widely used in construction, hollow bricks serve as lighter and more efficient sources for building. Due to their hollow nature, the blocks use less cement/concrete while still providing the same utility as a traditional brick. Therefore, the production cost is minimized while distribution reaps a greater profit. Hollow blocks are cheaper than bricks because they are made of stone dust, chips and cement; additionally, they serve as thermal insulators within the walls due to their hollow nature. There is abundance of raw material available in our valley and setting up a Hollow Cement Block manufacturing unit will provide employment avenues to numerous aspiring youths of the valley. The construction market in Kashmir is a very active sector and there is a constant demand for construction materials. In 2011, the Building Center Srinagar organised a 3 day training and awareness program for local construction tradesmen to promote alternatives for low-cost technology building materials. Hollow blocks were highlighted at this conference to present the advantages of being cost-effective, ecofriendly and beneficial for thermal insulation in Kashmir309.

News Links LCT awareness program concludes: Use new technology for ecofriendly, quake resistant buildings, Rising Kashmir News, 2011, http://www.risingkashmir.com/news/lct-awareness-programconcludes-9406.aspx

308

Project Profile on Cement Concrete Hollow Blocks, 2011 http://www.dcmsme.gov.in/reports/glass/HollowConcreteBlocks.pdf 309 LCT awareness program concludes: Use new technology for eco-friendly, quake resistant buildings, Rising Kashmir News, 2011, http://www.risingkashmir.com/news/lct-awareness-program-concludes-9406.aspx

100 Cement Tiles


Market Opportunity Cement Tiles Geographical Location Rural and urban areas Potential Market Size National market Rs. 2,200 crore310 International market Rs. 29,520 crore311 Key Customer Segments Local tile manufacturers, local end consumers, national tile manufacturers Advantage Kashmir Cement tiles prove advantageous for an aspiring entrepreneur due to simple manufacturing procedures, cheap input costs and easy access to raw materials. The process of manufacturing cement tiles is not complicated and requires only basic knowledge regarding cement mixtures and tile assembly. Cement tiles, comprised of simple materials such as stone dust and stone chips, serve the same purpose as ceramic tiles but offer a cheaper alternative. In addition to reduced input costs, cement tiles offer enhanced productivity due to ample access to raw materials, reduction in energy costs as well as lower logistics expenses. Therefore, with minimised input costs and potential for increased outputs, entrepreneurs could greatly expand the tile market in Kashmir. In 2011, the Building Center Srinagar organised a 3 days training and awareness program for local construction tradesmen to promote alternatives for low-cost technology building materials. Cement tiles were also highlighted at this conference to present the advantages of being cost-effective and eco-friendly312.

310 311

An Industry Profile from McG, Building Material Sectors in India, Madras Consultancy Group, Chennai, 2004 Based on tile installation industry as a whole - Tile Installers in the US: Market Research Report, IBISWorld, 2011 http://www.ibisworld.com/industry/default.aspx?indid=193 312 LCT awareness program concludes: Use new technology for eco-friendly, quake resistant buildings, Rising Kashmir News, 2011, http://www.risingkashmir.com/news/lct-awareness-program-concludes-9406.aspx

101 Cricket Bat Production


Market Opportunity Cricket Bat Production Geographical Location Rural and urban areas Potential Market Size Local market Rs. 10 crore313 National market Rs. 6,600 lakh314 International export market Rs. 9,700 lakh315 Key Customer/Partner Local, national and international tourists visiting Kashmir; local Segments sports teams and sporting goods stores/markets; national and international sporting goods sellers Advantage Kashmir The cricket bat sector in Kashmir Valley has more than 200 units, both registered and unregistered employing an estimated 10,000 Kashmiris and adding 500,000 bats to the Indian and international market annually316. Kashmir Willow is known worldwide to be the best material for cricket bat manufacturing and is also cheaper in comparison to the English willow. Access to raw materials of willow cleft in Kashmir Valley proves to be a high advantage; additionally, there is ample access to local skilled craftsmen able to contribute human labour for increased outputs. According to the DIC, the J&K government is setting up a cluster for manufacturing cricket bats in South Kashmir in which manufacturers will be able to utilize common facilities in order to modernize and promote the industry in the state. The government of India, under the Central Assistance Scheme, sanctioned the unit and the CBC is being constructed in Anantnag district. The DIC also inaugurated a Common Facility Center (CFC) in Sether, Bijbehara in the south to provide cleft seasoning to bat manufacturers. Here, clefts can be dried in just 15 days whereas typically it could take up to a year317. This industry provides large employment for local communities and skilled craftsmen, offers ample access and availability of raw materials, and guarantees high scalability for national and international export markets due to reduced competitive costs in local production.

313

Bat industry banks on Indias WC showing, RisingKashmir, 2011, http://www.risingkashmir.com/news/bat-industrybanks-on-indias-wc-showing-6409.aspx 314 Estimated Domestic Market for Sports Goods, IndiaMarkets: Empowering Business, 2012, http://www.indiamarkets.com/imo/industry/sports_goods/market.asp?display_content_link=0&search_link=0 315 IBID 316 http://www.aljazeera.com/indepth/spotlight/kashmirtheforgottenconflict/2011/07/20117241272505737.html
317

http://www.greaterkashmir.com/news/2011/Sep/23/cfc-to-promote-cricket-bat-industry-in-kashmir-13.asp

102 Wedding Planning Services


Market Opportunity Wedding Planning Services Geographical Location Rural and urban areas Potential Market Size National market Rs. 3000 crore318 Key Customer Segments Local population/families planning weddings

Advantage Kashmir As the wedding industry in J&K, as well as in India, grows with every year, wedding planners have started to become a requirement as opposed to a bonus in the planning process. Kashmirs vast marriage celebrations require meticulous planning and attention to detail. Therefore, wedding coordinators who are skilled managers, negotiators and mediators serve families by relieving their stress and worry over the wedding events. Low levels of competition in the state provide youth entrepreneurs with a market primed for the taking. Currently, the wedding planning industry in India is estimated at US$10 billion. Though the industry in Kashmir would begin relatively smaller, the great need for wedding coordination in the state provides ample opportunity for organised business. There are no specific educational qualifications required to get into this profession; however, it would be helpful to begin forming a portfolio of wedding and event planning experience. A good wedding planner requires excellent organisational and planning skills, good communication and negotiation skills, knowledge of fashion with a sense of color and decoration, as well as knowledge of local wedding customs and rituals. Additionally, strong leadership skills, the ability to work in a team, good time management, and the ability to multitask is necessary. News Links Bajpai, Vimarsh, Planning Someones Big Day, DARE: Because Entrepreneurs Do, 2008, http://dare.co.in/opportunities/services/planning-someones-bigday.htm Nizami, Salman, The Marriage Market, Greater Kashmir, 2011, http://www.greaterkashmir.com/news/2011/Jul/28/themarriage-market-94.asp

318

The estimated wedding market for India is Rs 60,000 crore and the wedding planning market is estimated as 2.5-5% of that industry (Bajpai, Vimarsh, Planning Someones Big Day, DARE: Because Entrepreneurs Do, 2008, http://dare.co.in/opportunities/services/planning-someones-big-day.htm)

103 Event Management Services


Market Opportunity Geographical Location Potential Market Size Event Management Services Urban areas National market Rs. 5,000 crore319 International market Rs. 24,60,000 crore320 Key Customer Segments Advantage Kashmir Local population for parties, corporate offices and small businesses for conferences and business gatherings In the early 1900s, the event management industry in India was worth Rs. 20 crore per annum321. The massive growth experienced this century will only continue to sky-rocket through technological advances. The event management industry in Kashmir has yet to be tapped which offers aspiring entrepreneurs a great advantage to create a strong business. Local business professionals would benefit from an event management service willing to coordinate conferences and large meetings; while the local population as a whole would benefit from an event management service willing to organise large parties, reunions and other gatherings. Though no specific educational certification is required, a successful event manager should possess: organisational skills; technical knowledge of various industries; public relations abilities; marketing/advertising skills; catering, logistics, dcor and fashion knowledge; networking and communication skills; knowledge of local laws and license requirements; budgeting skills.

319

the events management industry is worth Rs 5,000 crore and is growing at the rate of 50% per annum (faster permission needed to facilitate growth of business, The Financial Tribune , May 2006 http://www.financialexpress.com/news/faster-permission-needed-to-facilitate-growth-of-business/97473/0) 320 the annual spending for special events worldwide is $500 billion (The Event Planning Industry Certified Special Event Professional{CSEP}, A historical Background https://docs.google.com/viewer?a=v&q=cache:lgZm4962rFgJ:www.entrepreneur.com/downloads/guides/1313_Event_Plann ing_ch1.pdf+event+mangement+money+total+figures+only&hl=en&gl=in&pid=bl&srcid=ADGEESgdFozQ2cTuGlw_Z1yOTfv tUjSVlTll3A0OWIRw66XKrLmTFV0JGTpsyjlaYMdspKZEd7owrsIs3sfV5xEN_nH1VkP4PanEMiJp4wlZRzcJPqeNbe6bozLX5mhTRn0bpx7bx-&sig=AHIEtbSAB-an8QvhOgRGlmsPGUQ9aaj7DA) 321 Event Management Industry in India, Event Management, http://www.eventmanagement.in/event-managementindustry-in-india.htm

104 Small Healthcare Clinics


Market Opportunity Small Healthcare Clinics Geographical Location Rural and urban areas Potential Market Size Local market Rs. 18.75 crore322 National (total healthcare) market Rs. 167,280 crore323 Key Customer/Partner Local population in need of healthcare services Segments Advantage Kashmir While 70% of India lives in semi-urban and rural areas, 80% of Indias healthcare facilities are located in urban areas. In Kashmir there is a need of bridging this gap by building and managing hospitals in semi-urban areas and rural areas and therefore bringing healthcare services where it is needed most. In coordination with JKEDI, the J&K Bank offers a Seed Capital Fund Scheme under Sher-e Kashmir Employment and Welfare Programme for the Youth (SKEWPY)324 in order to provide finance to trained and registered first generation entrepreneurs. Health services and dental care units set up by doctors serves as one of the eligible industries included in this scheme. Therefore, due to high demand for rural and semi-urban healthcare clinics and availability of startup finances, aspiring entrepreneurs could make great use of the large number of certified, unemployed healthcare physicians in the area in order to create social enterprises providing greater services to the community.

322

average per capita treatment cost in India is Rs. 1672.8 (Health care in India Emerging market report 2007, http://www.pwc.com/en_GX/gx/healthcare/pdf/emerging-market-report-hc-in-india.pdf) multiplied by number of patients treated annually through operation is 1,12,097 (Jammu and Kashmir Government Digest of Statistics, J&K Government, 2008-2009) 323 Express Health Care, 2012, http://www.expresshealthcare.in/201202/market04.shtml - by 2012, Indias healthcare sector is projected to reach nearly $40 billion 324 J&K Bank, http://www.jkbank.net/specialisedLoans.php

105 Dental Clinics


Market Opportunity Dental Clinics Geographical Location Rural and urban areas Potential Market Size National market Rs. 3,247.2 crore325 International market Rs. 78,222 crore326 Key Customer Segments Local population in need of dental services Advantage Kashmir In 2008-09, 316 medical professionals graduated from medical and dental colleges in J&K327; however, with unemployment rates as high as 65% per year, it is unfortunately evident that sufficient training does not always guarantee a job. Therefore, a great demand exists for certified, employable dentists in the area. In coordination with JKEDI, the J&K Bank offers a Seed Capital Fund Scheme under Shere Kashmir Employment and Welfare Programme for the Youth (SKEWPY)328 in order to provide finance to trained and registered first generation entrepreneurs. Health services and dental care units set up by doctors serves as one of the eligible industries included in this scheme. Therefore, ample access to human resources, large market demand and financial aid for seed capital serve as great advantages for dental clinic entrepreneurship in Kashmir.

325

Indian dental care services market, constituted by dentists and dental ancillary services, is estimated at US$ 660 million (Industry Insight Indian dental Industry, Research and Market,2009 http://www.researchandmarkets.com/reports/1266161/industry_insight_indian_dental_market) 326 Market size for 2010 - Reportlinker Adds Global Markets for Dental Consumables and Prosthetics, PR Newswire, 2011, http://www.prnewswire.com/news-releases/reportlinker-adds-global-markets-for-dental-consumables-and-prosthetics121693568.html 327 Digest of Statistics 2008-09, Directorate of Economics and Statistics, Government of Jammu & Kashmir, 2009 328 J&K Bank, http://www.jkbank.net/specialisedLoans.php

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Annexure: Funding Schemes/Programmes & Financial Incentives (State Government)


A. For achieving the objectives of the industrial policy, the State Government extends the following incentives:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Allotment of land/Industrial plots/Sheds and Flats Pre-investment studies/Feasibility reports Power tariff/DG Sets Price preference Earnest money/security deposit Stamp duty Toll Tax General Sales Tax Central Sales Tax Special provision for prestigious units Capital Investment Subsidy (CIS) Interest Subsidy Testing equipment Substantial Expansion Air Freight Subsidy Research and Development (R&D) Interest Subsidy for Technocrats Transport Subsidy Sick units

1) Allotment of land/Industrial plots/Sheds and Flats a. the allotment of land/industrial plots/Sheds and Flats shall be on lease basis for a period of 90 years. b. the rent charged for the period of lease shall be invested in maintenance of the facilities in the industrial estate. In case of land outside the industrial estates, where no maintenance is required to be done by any Governmental agency, only a nominal lease rent shall be chargeable if the entire expenditure on the cost of land has been incurred by the promoter. c. Premium rates shall be notified by the Government from time to time and shall not change after land has been allotted to the promoter and a lease deed signed by him after paying the amount of premium. d. Land allotted on lease shall be transferable subject to some stipulations and also subject to the condition that the transferee shall not use the land for purposes other than setting up or running another industrial unit in the area with due clearances from the angle of pollution etc. 2) Pre-investment studies/Feasibility reports a. project profiles shall be prepared by the Directorate of I&C SIDCO and SICOP and shall be available off the shelf to the promoters at nominal price only to cover the cost of printing. b. the promoter may get a project feasibility report prepared from J&K ITCO, SIDCO, SIST or any other agency as may be approved by the Director I&C from time to time. The entire expenditure incurred on such feasibility reports shall qualify for hundred percent subsidy at the time of execution of the project. The promoter may get a report prepared also from any other specialist agency/ reputed consultants. c. the detailed feasibility report/detailed project report shall qualify for capital investment subsidy at the rates applicable to other items of capital investment, at the time of release of capital investment subsidy. d. the cost of obtaining technical know-how from abroad shall be treated as part of the capital

107 investment subject to the clearance of the Central government. In case of the indigenous technology/technical know-how, the same shall also qualify for capital investment subsidy if obtained from any reputed national or regional Organisation. e. provided that if the cost of such technical know-how exceeds 10% of the total capital cost only such amount as is within 10% of the total capital investment shall qualify for working out capital investment subsidy. 3) Power tariff/DG Sets a. power tariff for the industrial sector is subsidised. The Power Development Department (PDD) shall revise and announce the tariff from time to time, keeping in view the Government policy to encourage the development of industry in the State and the power tariff prevailing in the neighbouring states. b. 100% subsidy shall be allowed on new DG Sets of I0 KWs to 1000KWs capacity purchased from reputed/standard companies. The subsidy shall be available to the unit after it has been verified that the diesel set has been actually installed. c. the amount of subsidy on purchase of DG sets shall be paid only through a bank (or the concerned financing agency, if any) even if the promoter may not have taken any loan for purchase of the DG set. d. subsidy on DG set shall be paid on verification of installation and the remaining 50% shall be paid after expiry of period of one year of installation. e. the DG set shall not be shifted from the State for a period of ten years counted from the date of installation or to any other unit except with the approval of the Director I&C. If the unit makes any such request to shift the DG set to outside the State, the same shall be considered only in case the unit deposits the entire amount of the subsidy availed of together with interest thereon at the prevailing rate of interest on term loans. f. government shall allow setting up of captive Thermal Power Generating Stations (subject to Pollution Control measures to be adopted by the promoter) and also Hydel Generating stations. There shall be no electricity duty/state excise on generation of electrical energy through such captive Power Generating Stations for a period of 25 years. The station may be set up by an individual promoter or a group of promoters and the energy thus generated may be shared by them or sold to other consumers. 4) Price preference a. up to 15% price preference shall be available to the SSI units in all government purchases except in case of items brought on the negative list. The price preference shall also apply in case of any goods purchased by the public sec- tor undertaking/ boards purchased for their own non-commercial use. The price preference shall not cover items purchased by the public sector undertakings and boards who may use such goods as raw material, consumables, packing of their products which are, in turn, meant to be sold on commercial basis either to the government departments or to the private consumers or in the open market. b. nothing contained in the preceding para shall mean to restrain the Government from purchasing or allowing any of its departments/boards corporations to purchase any consumption/commercial goods from another manufacturing Organisation of Government such as JKI, JKM, SIDCO, Agro Industries Corporation, J&K Handloom Development Corporation, KVIB etc. without inviting tenders or after inviting tenders. c. In all other cases where the price preference applies, the following procedure shall be followed, in super cession of any other government or depart- mental instructions, if issued to the contrary, to regulate the purchases of the Government departments: Every purchase committee of the government departments shall include a member from the Directorate of the I&C, not below the, rank of a General Manager. Any Committee constituted without any such representative of DIC shall be void ab initio. If the goods offered by a registered SSI unit carry quality mark, for example of BIS, FPO etc. or if the goods otherwise are of standard quality, and if the rate quoted by the SSI unit is within 15% of the lowest rate quoted by the SSI unit is within 15% of the lowest rate quoted by any other tenderer not being another local registered SSI unit, the Purchase Committee shall decide

108 to place order on such local registered SSI unit, if the local SSI unit has the requisite registered capacity to meet the tendered requirement. If the rate quoted by the local registered SSI unit is not within 15% , the Committee shall negotiate the rate with the local registered SSI unit and place order on such negotiated rate. No tender from a local registered SSI unit shall be rejected in contravention aforementioned instructions. In case the Committee faces any difficulty in these instructions, it will refer the I&C Department in the secretariat decision in the matter shall be final on the purchase committee/the department If a local registered SSI unit is on r, with the DG SandD, DG QA, NSIC particular item needed by a Government department, it shall purchase the item from such SSI unit without inviting tenders. It would be lawful for a local registered SSI unit to quote through SICOP/SIDCO or to seek supply order through SICOP/SIDCO, or to request/authorise SICOP/SIDCO to represent its case before the purchasing department. In all such cases, SICOP/SIDCO shall be treated at par with the SSI unit or units whose case it may be representing, for all matters connected with the finalisation of the contract, delivery of supplies and the price preference. No purchasing department shall force or cause any local registered SSI unit to get more quality tests conducted at its own cost if such unit is registered with the BIS, DGS&D, DG QA, etc. for ISI/ISO 9000/FPO mark. No purchasing department shall tender for purchase of any item with a branded/patented name of any manufacturer or supplier. If the department supplies raw material to a local registered SSI unit, directly or through SICOP, such as Steel billets, Wire/Rods, for conversion into the end product required, such as structural steel, crate-wire etc., the conversion rate may be worked out by the concerned administrative department (such as PWD) and a rate contract be sanctioned for conversion only after taking into account the component of price preference. For any item where the market price for the goods manufactured by mills are controlled by statutory orders, which are not applicable to the SSI units, the price preference may be negotiated on the basis of such statutory rates.

5) Earnest money/security deposit a. SSI units shall be required to pay only 50% of the amount of earnest money prescribed by the tendering authority or Rs. 5000 whichever is lower. b. tender documents shall also be supplied to the SSI units @ 50% of the price of the documents or Rs. 100 whichever be lower. c. SICOP/SIDCO shall be treated at par with the SSI units for the purposes of the aforementioned provisions. 6) Stamp duty Mortgage deeds in favour of the financing institutions required to be signed by the promoters shall be exempt from payment of Stamp Duty. 7) Toll Tax a. there will be no additional or special toll tax on the raw material, fuel and consumables procured from outside the State by the existing local SSI units till 31.3.2003 and by new units for a period of 5 years from the date of production, except on items brought on the negative list from time to time. b. there will be no additional or special toll tax on finished goods manufactured by the existing local SSI, Medium and Large units and sent outside the State up to 31.3.2003 and by the new SSI Medium and Large units for a period of 5 years from the date of production, except on items brought on the negative list from time to time. c. there will be no additional or special toll tax on the raw material, fuels and consumables brought from outside the State by the existing Medium and Large units up to 31.03.2003 and for a period of 5 years from the date of production in case of new units except in case of items brought on the negative

109 list from time to time. For items on the negative list, this concession shall be available on the component, which is used in manufacturing of finished goods which are subsequently sent outside the State. For this purpose the Medium and Large units shall initially pay additional or special toll tax when bringing the raw material, fuels and consumables and the amount shall be refunded/adjusted against fresh procurement of raw material/fuel/consumables when the goods leave the State. d. There will be no additional or special toll tax on components, machinery, plant, building material and other equipment procured from outside the State for buildings the factory, for a period of 5 years from the date of registration of the unit in SSI, Medium or Large Sector. e. There will be no additional on special toll tax on 100% export oriented units on the goods exported under proper export documents from the State to any foreign country. f. SICOP/SIDCO/JKHC/JKHDC/HHRO shall not be required to pay additional or special toll tax on raw materials, fuels, consumables procured from outside the state for exclusive use of the SSI/Handicrafts/Handloom units as also while transporting goods manufactured by the local SSI/Handicrafts/Handloom units for sales or exhibition outside the State. 8) General Sales Tax a. There will be no GST on sales of finished goods by the existing local SSI units till 31.03.2003 and for a period of 5 years from the date of production in case of new SSI units except on items brought on negative list. b. There will be no GST on the raw material procured by the local SSI, Medium and Large units except on items brought on the negative list, c. There will be no GST on the sale of finished goods manufactured by the new Medium and Large industrial units up to a ceiling on such amount of GST which would have been otherwise payable equivalent to 150% of the total capital investment made in the unit or for a period of 5 years from the date of production whichever occurs earlier except on items brought on the negative list. d. There will be no GST on purchase of machinery and equipment for construction of the factory for a period of 5 years from the date of provisional registration by the SSI units. e. The above concessions shall also be available to SICOP while acting on behalf of local registered SSI units. 9) Central Sales Tax The local existing SSI units shall be exempt from charging and payment of CST on sale of their finished goods outside the State up to 31.03.2003 and the new SSI units for a period of 5 years from the date of production. 10) Special provision for prestigious units Notwithstanding anything contain capital investment of Rs. 25 crores or above, shall have the option to avail of full exemption from payment of GST, CST and special/additional toll tax for a period of 5 years from the date of production or until such amount of exemption reaches the level of 150% of capita investment in the project whichever occurs earlier. prestigious units i.e. those having Notwithstanding anything contained in para 7, 8 and 9 above, those prestigious units which come into commercial production in the year 1998, shall have the option to avail a power tariff freeze at the rate of Rs. 1.50 per unit for a period of five years from the date of commercial production. For purpose of paras 7,8,9 and IO above all the new units shall also have the option to count the period of 5 years from the date of production or from the succeeding financial year. 11) Capital Investment Subsidy (CIS) a. CIS shall be available if the item for manufacturing has not been brought on the negative list b. CIS shall be available to the new SSI, Medium and Large units @ 30% of the capital investment subject to an upper limit of Rs. 30 lakh. c. in case of a prestigious unit which is hereby defined as a unit with capital investment of Rs. 25 crores and above the limit of CIS shall be Rs. 60 lakh. d. In case of the following thrust areas the upper limit of the CIS shall be Rs. 45 lakh and Rs. 75 lakh

110 in case the unit also falls in the prestigious category: Food processing and agro-based industry, electronics including computronics and software, leather processing and leather-goods, sports goods forest based in- dustry excluding saw mills and joinery, processing of aromatic plants and herbs, pharmaceuticals based on herbs, bulk drugs, silk reeling, weaving, processing printing and textiles including spinning, weaving, processing, hosiery and made ups, cutting and polishing of precious stones, gems and jewellery precision engineering and other areas identified as thrust areas. e) 75% subsidy to be included for original. 12) Interest Subsidy 5% subsidy shall be payable on the working capital facilities available from the commercial banks to all existing units upto 31.03.2003 and to all new units for a period of 5 years from the date of production or from the subsequent financial year as may be decided by the unit subject to the following conditions: a. the item for manufacturing is not on the negative list. b. the subsidy shall be passed on to the commercial bank at the end of the financial year c. after the first year of entitlement, the subsidy shall be released only if the unit has increased its production and the same condition shall be applicable to the remaining years of entitlement, in reference to each preceding year. d. This aforementioned condition shall not be applicable for subsequent years if the unit attains 95% production capacity utilisation before completing its period of entitlement for 5 years and the same does not go down during the subsequent years of entitlement. 13) Testing equipment 100% capital subsidy shall be provided by the Government on installation on the testing equipment subject to a maximum amount of Rs. 50 lakh and also restrict- ed to 25% of the total capital investment if the cost of testing equipment exceeds 25% of the total capital investment, provided that in case of the existing units the same is installed within 31.03.2003 or in case of the new units the same is installed within 5 years of its going into production 70% of the amount shall be disbursed on installation and the balance 30% shall be disbursed after one year. The condition of 25% of the capital investment shall not apply in case the amount of subsidy involved does not exceed Rs. 5 lakh. The units which obtain ISO 9000 certification shall be entitled to a lump sum award of Rs. One lakh or 100% of cost paid for such registration whichever be higher subject to a maximum of Rs. 2.5 lakh provided that such certification is obtained before 31.03.03. 14) Substantial Expansion An existing unit which increases its installed capacity by at least 25% or adds additional line of manufacturing so. as to increase its capacity of turn-over by 25% in terms of volume or value of finished goods shall be deemed to have gone for substantial expansion and shall be entitled to the benefits on capital investment on such expanded capacity as if the investment would have been made in a new unit. 15) Air Freight Subsidy Air freight subsidy shall be available on finished goods for any destination at 50% subject to a maximum of Rs. 5 lakh for new units for a period of 5 years from the date of production. 16) Research and Development (R&D) 50% subsidy shall be available for expenditure incurred on R&D through any reputed Organisation for any project undertaken on the sponsorship of any exist- ing or new unit subject to a maximum of Rs. 5 lakh for each such project duly approved by the government. 25 % subsidy shall be available on R&D expenditure of any unit, on non-recur- ring items of expenditure, subject to prior approval of the project by the govern- ment, upto a maximum limit of Rs. 5 lakh. 17. Human resource development 50% of the cost of training shall be borne by the government, subject to Rs. 5000 per course per trainee and subject to Rs. One lakh per annum, for any

111 unit for a period of 5 years. In case of women trainees, the corresponding figures shall be 75% Rs. 7500 and Rs. 1.50 lakh respectively. For programmes of skill-develop- ment leading to employment of the trainees into employment, 50% of the cost of training shall be borne by the government, on approved programmes subject to a maximum of Rs. 5 lakh per unit. In case of women trainees the corresponding figures would be 75% and Rs. 7.50 lakh. 17) Interest Subsidy for Technocrats 5% interest subsidy on term loan shall be available for the technocrats (engineering graduate/MBAs) on term loan availed from the financing institutions. 18) Transport Subsidy This is a GOI scheme and shall continue as such. 19) Sick units A fund shall be constituted for providing financial assistance for revival of sick units. Assistance to the extent of 30% of the total additional loan requirements of the sick unit may be provided to the sick unit provided that the amount of such assistance shall not exceed 30% of the capital cost of the project worked out after conversion of any outstanding liabilities of financing institutions into term loan. The assistance shall be in the form of a soft term loan with I % rate of interest per annum. The amount may be used for meeting margin money needs of the sick unit also as for liquidating liabilities of government departments.

112

B. SCHEMES IMPLEMENTED BY JKEDI


(Source: www.jkedi.org) 1) SEED CAPITAL FUND SCHEME (SCFS): (Scheme under Sher-e-Kashmir Employment and Welfare Programme for the Youth (SKEWPY) announced by Government of Jammu and Kashmir) OBJECTIVES: To motivate, train and facilitate educated youth to take up entrepreneurship as a career option and create employment opportunities not only for themselves, but also for others. To invest in various areas of economy to optimally exploit the resources CORE AREAS: Horticulture, floriculture, cultivation of medicinal and aromatic plants; Food-processing at the household/village level; Food storage establishment, particularly cold chains; Handloom, handicrafts and other artisan products: particularly design improvement, technology-transfer and marketing; Ventures in poultry, sheep-breeding and production, collection, storage and marketing of milk: aimed at import substitution; Setting up of computer literacy/training institutes in villages/habitations particularly with a population of less than 3000 souls; Health services unit/dental care units set up by doctors; Pathological labs including diagnostic facilities set up by doctors/trained professionals; Tourism-related enterprises covering houseboat owners, setting up of Paying Guest facilities, small dhabas and restaurants with capacity of 20 seats. ELIGIBILITY: One should be the state subject of J&K Fall in the age group of 18 to 37 years of age Qualification of 10+2 or above Unemployed No income ceiling for coverage under the scheme; Beneficiaries must be registered with the concerned District Employment and Counselling Centre. They can also be registered with other departments and institutions like DICs etc. wherever required so as to take advantage of the benefits which may accrue through such registrations. Any person or any existing units and the units which have already availed of any incentive or subsidy under any scheme of the Government of India or the State Government shall not be eligible for assistance under that scheme; No institution, corporate body, society or an NGO shall be eligible for assistance under the scheme. FUNDING PATTERN: Undergraduates/Graduates: 35% of the project cost subject to a maximum of Rs. 3 lakh Post-Graduates: 35% of the project cost subject to a maximum of Rs. 5 lakh Technically qualified persons (engineers, doctors, computer science and technology graduates, MBAs, etc): 35% of the project cost subject to a maximum of Rs. 7.5 lakh For Group Initiatives: the upper limit shall be relaxable up to Rs. 10 lakh In Individual Cases where costlier technologies are involved, the upper limit shall be Rs. 10 lakh (the screening committee shall decide as to which case falls in this category. Moratorium period: maximum up to 2 years)

113 2) TERM LOAN SCHEME: Rate of interest: 6% Projects considered: projects costing up to Rs. 5 lakh Loan extent: 85% of the project cost (maximum of Rs. 4,25,000/-) Beneficiarys Contribution: minimum 5% of the project cost ELIGIBILITY CRITERIA: Age: no bar Permanent resident of Jammu and Kashmir state Applicant should belong to minority community (Muslim, Sikh, Christian, Buddhist, Parasi) Family income less than 40,000/- (rural areas) and 55,000/- (urban areas) Assistance under Term Loan Scheme is available for any commercially viable and technically feasible venture which for the sake of convenience has been divided into the following sectors o Agriculture and allied sectors o Artisans sector o Small business sector o Technical trade sector o Transport sector

C. JAMMU AND KASHMIR STATE SELF-EMPLOYMENT SCHEME (JKSES)


(Source: http://www.jakemp.nic.in) OBJECTIVES: The main objective under these SESs is to address the unemployment problem; The SES aims at establishing large number of small units; The entrepreneurs may be individuals or joint ventures/groups; The Project Reports is prepared in respect of viable schemes; The effort under SES is to cover maximum number of educated, unemployed people These schemes are credit cum subsidy programmes and envisage greater involvement of banks; Those who will be sanctioned loans will be given necessary training wherever necessary. PROJECT COST: An activity covered under Retail Trade shall qualify for assistance provided the total cost of the scheme does not exceed Rs. 2 lakh; An activity covered under Industries/Services etc. shall qualify for assistance provided the total cost of the scheme does not exceed Rs. 300 lakh; In case of Joint Ventures maximum limit of the cost of the scheme shall be Rs. 10 lakh (Joint Venture consisting of at least 2 candidates)

D. SCHEMES IMPLEMENTED BY JAMMU & KASHMIR STATE WOMENS DEVELOPMENT CORPORATION


(Source: www.jkwdc.com) 1. National Minorities Development and Finance Corporation (NMDFC) Government of India has identified five communities viz, Muslims, Buddhists, Sikhs, Christians, Zoroastrians as Minorities at the National level. The Corporation provides long term loan at a concessional rate of interest to assist the poor women of these communities for setting up of their own Income Generating Units. ELIGIBILITY CRITERIA Individual beneficiary from minority community (18-45 years age group)

114 HOW TO APPLY The beneficiary will fill up the form prescribed by the Womens Development Corporation ANNUAL FAMILY INCOME Rs. 55,000/- for urban areas and Rs. 40,000/- for rural areas TERMS AND CONDITIONS OF NMDFC LOAN TO INDIVIDUALS: Project Cost Beneficiary NMDFC Share WDC Share Interest Rate (in Rupees) Share 25,000 to 85% 10% 5% 6% 1,00,000 **Note: Repayment of 5 years at simple interest rate and after 5 years, interest will be charged at 12% TERMS AND CONDITIONS OF NMDFC UNDER MICRO CREDIT TO SHG: Project Cost Self Help Interest Rate (in Rupees) Group (SHG) 15-20 5,000 to 25,000 beneficiaries in 5% per beneficiary a group **Note: (1) NGO can avail Micro Credit facility from JKWDC at 2% and can inturn lend to SHGs at 5% (2) Repayment period of 3 years at simple interest rate

2. EMPOWERING SKILLED YOUNG WOMEN (ESW):


Under this scheme loan is available for skilled/qualified young women irrespective of caste, creed, religion and income ELIGIBILITY CRITERIA: 18-45 years of age Should be J&K state subject holder Should be matriculate or above Should not be a defaulter with any other financial institution MAXIMUM LOAN LIMIT: Rs. 50,000 to 3 lakhs RATE OF INTEREST: 6% TERMS AND CONDITIONS: Maximum Loan Rs. 50,000 to Rs. 3 lakhs WDC Share 90% Beneficiary Share 10% Interest Rate 6% Repayment Period 5 years

Rs. 0.10 lakh for municipal areas and Rs. 1.25 lakh for Municipal Corporation areas may be added to the maximum limits for loan **Note: Repayment period of 5 years at a simple rate of interest and after 5 years, interest will be charged at 12%. In all above loan schemes loan can be utilized for Jute accessories, toy making, flower making, tye and dye, DTP, software development, horticulture, agriculture, aquaculture, cut flowers, aromatic plants food products or any other viable project.