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Agro Industry Scenario | An Introduction
The agro industry is regarded as an extended arm of agriculture. The development of the agro industry can help stabilise and make agriculture more lucrative and create employment opportunities both at the production and marketing stages. The broad-based development of the agro-products industry will improve both the social and physical infrastructure of India. Since it would cause diversification and commercialization of agriculture, it will thus enhance the incomes of farmers and create food surpluses.

The agro-industry mainly comprises of the post-harvest activities of processing and preserving agricultural products for intermediate or final consumption. It is a well-recognized fact across the world, particularly in the context of industrial development, that the importance of agro-industries is relative to agriculture increases as economies develop. It should be emphasized that ‘food’ is not just produce. Food also encompasses a wide variety of processed products. It is in this sense that the agro-industry is an important and vital part of the manufacturing sector in developing countries and the means for building industrial capacities. | | | The agro Industry is broadly categorised in the following types:

(i) Village Industries owned and run by rural households with very little capital investment and a high level of manual labour; products include pickles, papad, etc.
(ii) Small scale industry characterized by medium investment and semi-automation; products include edible oil, rice mills, etc.
(iii) Large scale industry involving large investment and a high level of automation; products include sugar, jute, cotton mills, etc. | The development of agro-based industries commenced during pre-independence days. Cotton mills, sugar mills, jute mills were fostered in the corporate sector. During the post-Independence days, with a view to rendering more employment and using local resources, small scale and village industries were favored. | | | The increasing environmental concerns will give further stimulus to agro based industries. Jute and cotton bags, which have begun to be replaced by plastic bags, have made a comeback. It is the right time to engage in mass production of low cost jute/cotton bags to replace plastic bags. | | The agro industry helps in processing agricultural products such as field crops, tree crops, livestock and fisheries and converting them to edible and other usable forms. The private sector is yet to actualize the full potential of the agro industry. The global market is mammoth for sugar, coffee, tea and processed foods such as sauce, jelly, honey, etc. The market for processed meat, spices and fruits is equally gigantic. Only with mass production coupled with modern technology and intensive marketing can the domestic market as well as the export market be exploited to the fullest extent. It is therefore imperative that food manufacturers understand changing consumer preferences, technology,With modernization, innovation and incorporation of latest trends and technology in the entire food chain as well as agro-production, the total production capacity of agro products in India and the world is likely to double by the next decade. | India is the second largest producer of food in the world. Whether it is canned food, processed food, food grains, dairy products, frozen food, fish, meat, poultry, the Indian agro industry has a huge potential, the significance and growth of which will never cease.

Sea fishing, aqua culture, milk and milk products, meat and poultry are some of the agro sectors that have shown marked growth over the years. linkages between members of the food supply chains and prevailing policies and business environments to take advantage of the global market. | | Processed Food Segment
The processing level of the agro industry may be at the primary, secondary or tertiary stage. In the case of hides and skins, India exports largely semi-processed items whereas in coffee/tea, the exports are mostly in secondary stage by way of fully processed bulk shipments without branding/packing. Exports at the tertiary stage mean branding and packaging the product that are ready for use by the consumer. | A few years ago, companies struggled to sell packaged foods. But now it is much easier to break into the Indian market because of a younger population, higher incomes, new technologies and a growing middle class, estimated at 50 million households. An average Indian spends around 53 per cent of his/her income on food. The domestic market for processed foods is not only huge but is growing fast in tandem with the economy. It is estimated to be worth $90 billion. Processed Food Manufacturing companies are required to be persistent and must adapt products to the Indian cultural preferences. | | Many big companies like ITC, HLL, Nestle entered the Indian market a long time ago and have made a deep penetration in the market. From these success stories we can learn some lessons in order to capture the higher end of the local market and get a fair share of the export market. The model is structured around the following:- | | * Large scale investment and adoption of the latest technologies * Intensive marketing efforts * Perhaps, a foreign tie-up can be beneficial * Brand name. | | The levels of processing and manufacturing can be classified into three groups, namely manual, mechanical and chemical or a combination thereof. In choosing the process, the main considerations are the nature of the raw materials, technology of processing, and packing. | | | Other Segments
Dairy product is another area where there is enormous potential. No doubt the country has made tremendous strides in the last 20 years in production and processing of milk and milk products. But the fact remains that only 15 per cent of all the milk produced is processed. Today, a large number of people suffer from diabetic or cardiac ailments and availability of fat free milk, fat free curd and sugar free food is poor. A simple product like soya milk is not produced in adequate quantity. | Fish and shrimp have good export potential but there is an immense lack of cold storage and modern processing facilities. For instance fish production is around six million tonnes a year and the frozen storage capacity spread over 500 units is only one lakh tonnes. | | Another area is herbal medicine. It is being increasingly realized the world over that herbal drugs do not have any side effects. India has a good number of tried and tested herbal products in use and what is required is rigorous quality control, proper packaging and a brand name.

The government and modern retailers are addressing these issues with new laws on packaging and labeling as well as greater investment in the supply chain. | The Progress Ahead*
With modernization, innovation and incorporation of latest trends and technology in the entire food chain as well as agro-production, the total production capacity of agro products in India and the world is likely to double by the next decade.

India is the second largest producer of food in the world. Whether it is canned food, processed food, food grains, dairy products, frozen food, fish, meat, poultry, the Indian agro industry has a huge potential, the significance and growth of which will never cease.

Sea fishing, aqua culture, milk and milk products, meat and poultry are some of the agro sectors that have shown marked growth over the years. | | | |
Agro-Based Industries
Sugar Industry The sugar industry is the most important industry among the various agro-based industries in Maharashtra. The life of approximately 2.5 crore of people in the rural areas is dependent on this industry. Almost Rs. 2200 crore worth revenue is collected from the sugar industry alone. In the process of sugar production, almost 5000 people are involved, right from the cultivation of sugarcane to the delivery of sugar in the market. One sugar factory means employment for 5000 personnel. These figures substantiate the importance of sugar industry in Maharashtra. There are total 202 registered sugar factories (including some that are either closed or in financial difficulties), with a turnover of approximately 12,000 crore of rupees. There is an increase in the production of sugar every year and in 2007, it reached an all-time high of almost 850 lakh tonnes.
The sugar factories in Maharashtra have a 60-year old tradition. Dr. Vitthalrao Vikhe-Patil established the first co-operative sugar factory in Ahmednagar district. Dhananjayrao Gadgil, the senior expert in co-operative sector, Vasantdada Patil, Tatyasaheb Kore to name a few and many others have also contributed to the growth of cooperative sector in Maharashtra.
The cooperative sugar factories in the State have not just remained an industry, but they have become a movement. This movement not only led to the industrial development of the State but also gave Maharashtra many of its social and political leaders. The establishment of sugar factories led to speedy development of basic amenities in its neighbourhood. It also led to the tradition of starting major educational complexes just next to the sugar factories. Many irrigation schemes, lift irrigation as well as many schools, colleges, hospitals and other social-welfare schemes were implemented by these sugar factories. This led to social as well as educational development along with industrial progress of the State.

Allied Products

The sugar industry also creates many by-products. Approximately 28-30 tons of crushed sugarcane, 4 tons of scum, 3 tons of distilled mess and almost 0.3 tons of ashes are the by-products after crushing 100 tons of sugarcane. These secondary by-products become the raw material for other industries.
Sugarcane and sugar production in Maharashtra

Year | Area cultivating sugarcane
(’000 hectares) | Production of sugarcane
(tonnes per hectare) | Sugar production
(lakh tonnes) | Sugar (%) | Sugar Factories (Number) | 1980-81 | 256 | 92.00 | 28.85 | 11.07 | 82 | 1990-91 | 440 | 96.52 | 41.17 | 10.76 | 102 | 2000-01 | 590 | 576• | 67.2 | 11.7 | 140 | 2001-2002 | Not available | 480• | 55.8 | 11.2 | 127* | 2002-2003 | Not available | 534• | 62.0 | Not available | 159 |
1999 – 2000 figures. • Sugarcane Production (lakh tons) *13 Factories closed
(Reference – Vasantdada Sugar Institute, Pune Handbook and Maharashtra Times)
The sugar factories in Maharashtra are also concentrating on diverse fields like alcohol, chemicals and paper industries. 6 sugar factories in the State have used crushed sugarcane, while two other sugar factories have used bio-gas to produce electricity through cogeneration.
The sugar factories in the State have also contributed to an all round development in the rural areas by encouraging and engaging in various activities like building machines to produce bio-gas, digging wells, building public lavatories, producing animal-feed, poultry and horticulture.

Textile Industry

The textile industry using modern methods started in Maharashtra 150 years ago. The first cotton mill was started in Mumbai in 1854. This cotton mill is considered the first mill in the country.

Mumbai is the biggest centre of the textile industry in Maharashtra. As the city is close to the sea, its humid climate is suitable for the production of textiles. This is why the textile industry has centred in Mumbai on a large scale. Specific types of textiles are also produced in Nashik, Kolhapur, Sangli, Solapur and Nagpur. For example, Paithani Saris and Peetambars from Yeole (Nashik), blankets from Solapur, as well as cotton textiles from Nagpur. Ichalkaranji (Kolhapur) and Malegaon (Nashik) are also famous for handloom and machine loom.

Animal Husbandry

Animal husbandry plays an important role in the rural economy of Maharashtra. Animals like cows, buffaloes, bullocks, goats, sheep and hens have an important place in rural economics. In the year 2007-08, this sector had 24% share in the agricultural income of the gross State product. The density of animal resources is 120 per sq km (according to the 2007 livestock census).

Other agro-based industries include the dairy industry. The dairy industry has become a regular source of income throughout the year, which is why it has been accepted as a supplementary industry to farming. 65% of farmers in the State are involved in the dairy industry. Mahanand, Gokul and Warana are some of the major as well as popular names in this sector. This sector creates opportunities for employment in the aspects of production, processing, transport and cattle rearing.
Animal Husbandry and Poultry Production | Measure | 2006-07 | 2007-08* | Percent Growth | Milk | 000 Metric tonnes | 6,978 | 7,187 | 3.0 | Eggs | Crore | 340 | 351 | 3.2 | Meat | 000 Metric tonnes | 243 | 250 | 2.9 | Wool | Lakh kg | 16.67 | 16.96 | 1.7 |

* provisional
In the year 2006-07, this sector had 21% share in the agricultural income of the gross State product. According to the 2003 livestock census, there were 3.71 crore animals in the State.

Silk Industry

The climate in the State is suitable for the silk industry and there is great scope for further development in this sector leading to greater employment generation. Maharashtra ranks first in the country in the production of silk using non-traditional methods and 5th in the total production of silk. Mulberry silk development programme is being run in 23 districts while the Tussar silk development programme is being run in four districts, namely, Gadchiroli, Chandrapur, Bhandara and Gondia.


Maharashtra has the benefit of the Konkan coastline that extends up to 720 km. Salt water fishery is an important business of Konkan. Dahanu, Mahim, Vasai, Versova, Alibaug, Murud-Janjira, Shrivardhan, Dabhol, Ratnagiri, Shirod, Harne and Vengurle are important fisheries centres. The Surmai, Pomfret, Prawns, Bangda, Ravas and Halva type of fish are found off the Konkan coastline. Besides this, fresh water fishing is carried out in rivers, lakes and the backwaters of dams. Fish is an important food item of the diet of people in the State. Fish is also used for production of oil, cosmetics and fertilizers.

Salt water fishing is carried out over an area of 9.12 lakh sq km, fresh water fishing over an area of 3.01 lakh hectares while semi salt water fishing is over an area of 0.19 lakh hectares.
Significant Particulars Regarding Fisheries Factors | Unit | 2008-09 | 2007-08* | 2006-07 | Total fish production: | Salt-water | Lakh metric tonnes | 3.6 | 4.1 | 4.6 | Fresh-water | Lakh metric tonnes | 1.0 | 1.3 | 1.3 | Total | | 4.6 | 5.4 | 5.9 | Value of fish produce: | Salt-water | Rupees in Crore | NA | 1,506 | 1,423 | Fresh-water | Rupees in Crore | NA | 755 | 622 | Total | | NA | 2,261 | 2,045 | Exports: | Units | Lakh metric tonnes | 0.5 | 1.0 | 1.40 | Value | Rupees in Crore | 686 | 1,237 | 1,347 | Fishing boats | Numbers | 27,812 | 26,195** | 24,644 | Mechanized boats | Numbers | 14,469 | 14,666** | 14,554 | Fish collection centres | Numbers | 184 | 184 ** | 184 |
*: Till December 2007, **: temporary, NA: Not Available

India is one of the world's largest producers of food, and is the largest producer of milk, sugarcane and tea, as well as the second largest producer of rice, wheat, fruits, and vegetables. Nearly 70% of the population depend on agriculture and agro-based industries.

Mott MacDonald in India has significant experience in business case planning, engineering design and project management for dairy, fruit and vegetable pulp, fruit juice, IQF (Individual Quick Freezing), MDF (Medium Density Fibre), pulp and paper, sugar, vegetable oil (edible and non-edible) production, flavour and fragrance manufacturing facilities.

We have undertaken a wide range of studies of agribusiness, food processing and allied sectors. We have worked with State Government Undertakings and Corporate clients on assignments covering all aspects of crop production, animal husbandry and fisheries, horticulture, post-harvest management, processing and marketing.

We are also involved in the improvement of agricultural inputs, designing plant for the production of agro-chemicals (fertilizers, herbicides and pesticides), and extending and improving irrigation.

We have also rendered advisory services to agro industry which varied from market assessment, benchmarking, techno economic feasibility studies, technical due diligence, asset valuation to benefit monitoring and evaluation.

India's first port based edible oil refinery and hydrogenation complex at Mundra, Gujarat

Adani-Wilmar Limited (AWL) - a joint venture between Adani Group of India and Wilmar Holdings Pte. Limited, Singapore - appointed Mott MacDonald to provide engineering and project management ser-vices to set up India's first port based edible oil re-finery at Mundra, Gujarat. AWL's largest state-of-the-art refinery has a consolidated refining capacity of 2200 TPD and hydrogenation capacity of 350 TPD. The quality of oil is at par with the best in the world, meeting U SFDA standards. The plant facilities also include an integrated packaging plant which includes HDPE blow moulding facility, PET Preform/blow moulding facility and Tin manufacturing facilities. It also includes a fully automated corrugated box manufacturing facility along with a facility for multi-layer multi-coloured film for pouch packing. The refining complex has a coal based captive power plant of 4 MW.

We were the promoters' independent technical consultant undertaking design, detailed engineering, procurement assistance, site supervision and project management services.

Grain silo facility, India

Mott MacDonald was commissioned as the design engineer, developing facility infrastructure, foundations for all the civil work, fire protection and electrical installations for construction of 66 grain silos amounting to 593,000 metric tonne storage capacities along with ancillary facilities such as wagon and truck loading and unloading structures, material handling systems and ground infrastructure for Adani Agro Logistics Limited. The project is developed for collection, storage, handling and distribution of bulk food grains both wheat and paddy across India. The two base depots are located at Mogha Kaithal, Punjab and five field depots are located at Bangalore, Chennai, Coimbatore, Hooghly and Mumbai.

Stackable potato chips plant

Mott MacDonald was engaged by Pepsico for its brown field project for stackable potato chips production at Howrah, West Bengal. The project was set up with a capital outlay of INR 500 million. The main plant was designed using pre-engineered building in a 5,000 sq.m area in a controlled air-conditioned environment. Being a brown-field project, the designers faced a challenge of integrating the expansion with the existing facility and also meeting the GMP norms. The project was engineered for a connected electrical load of 2 MW.

The scope of services included detailed engineering, construction supervision, project schedule monitoring and control.
Spice processing business case

Shrichakra Udyog Private Limited (SUPL) is a Government of India (GOI) recognised Two Star Export House dealing in International Trading of Agro Commodities and Building Materials. SUPL has been awarded with the status of holder of Exporters Gold Card under the RBI Scheme from all its Bankers. SUPL started operations in 1998 and within a span of 9 years has achieved a turnover of about Rs 1,000 million (US$ 25 million).

Mott MacDonald assisted SUPL to conceptualise and develop a Spices Processing Project as a backward integration to its existing operation. Mott MacDonald also supported SUPL in achieving Financial Closure of the Project.
Agro industry restructuring

West Bengal Agro Industries Corporation (WBAIC) was established within the State of West Bengal in mid 1950’s to increase agricultural production through use of technology and create employment. The corporation undertook the execution of various schemes in agriculture thereby fulfilling its social obligation at the instance of the Government.

With changing economic and social scenario, the Government of West Bengal appointed Mott MacDonald to prepare a detailed business, administrative and financial restructuring plan for the corporation.
Bio - ethanol plant, USA

E85 Inc. was established specifically to develop bio-ethanol projects aiming to become a world leader in ethanol production and distribution through developing bio-ethanol plants in multiple states through USA.

Delta-T has two decades of experience in designing, engineering, procuring high-tech alcohol plants, and refining systems with a track record of 120 ethanol projects worldwide in other various roles.

The project developer E85 Inc. has engaged Delta-T to provide detailed engineering, procurement assistance, project and construction management overview and technology license services for the three plants proposed. The financial advisor for the project is Siva Ventures Limited (SVL).

Mott MacDonald has been contracted by the State Bank of India to act as Independent Technical Adviser for the development of three bio ethanol plants in the mid-western region of the United States of America (USA).
Agro waste to energy project

Turboatom TPS Projects Limited has approached State Bank of India (SBI) with a proposal to set up two 15 MW bio-mass based thermal power plants at Talegaon, district Wardha and Inzhuri, district Washim in Vidharbha region of Maharashtra. The Company has entered into a MoU with Wuxi Huaguang Electric Power Engineering Company Limited (WHEPECL) for the design and supply of major components of plant and machinery for a contract price of RMB 65.638 million (INR 339 million) for 30 MW unit.

SBI has appointed Mott MacDonald to undertake a techno-commercial appraisal of the project across the two locations.

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...Review article: 1 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 2 The Competitive Imperative of Learning 10 Further Reading A list of related materials, with annotations to guide further exploration of the article’s ideas and applications This document is authorized for use only by Suzi Tack (ST@STRATHSPEYCROWN.COM). Copying or posting is an infringement of copyright. Please contact or 800-988-0886 for additional copies. Reprint R0807E The Competitive Imperative of Learning The Idea in Brief Most managers believe that relentless execution—the efficient, timely production and delivery of offerings—is vital to corporate performance. Execution-as-efficiency is important. But focusing too narrowly on it can prevent your company from adapting effectively to change. Consider General Motors: Managers’ confidence in GM’s famously efficient control systems blinded them to big shifts in the market, including customers’ preferences for fuel-efficient cars. GM posted a $38.7 billion loss in 2007. Edmondson recommends widening your lens to include execution-as-learning. Companies that use this approach focus not just on carrying out key processes more efficiently than rivals—but also on learning faster. To foster execution-as-learning, make it safe for employees to ask questions and fail. Then: • Provide process guidelines, using the best available knowledge. COPYRIGHT © 2008 HARVARD......

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...SEAN PATRICK O’BRIEN 30 Schaefer St • Huntington Station, NY 11746 (H) 631-683-4617 • (C) 631-455-1522 Over twelve years experience in the food service industry as brokerage salesperson, warehouse manager, event manager, trade show manager, and restaurant manager for front- and back-of-the-house EMPLOYMENT Event Manager 2011- 2013 Club Demonstration Services Westbury, NY • Responsible for all product demonstrations for one of the five highest grossing Costco locations nationwide • Manage up to 20 different events on a daily basis • Plan, organize, coordinate, promote, and facilitate onsite road shows and special events • schedule and maintain communication with vendors and participants • coordinate and monitor event timelines • act as prime source for promotion of activities and special events • Aggressively gather information on each project to achieve quality event productions • Propose new ideas to improve the event planning and implementation process • recruit for and oversee hiring process and review and analyze staff evaluations • Successfully manage more than 50 staff members • assisted in the coordination of recent grand opening of new Costco location Food Service Sales......

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...Expert Reference Series of White Papers Tips and Techniques to ® Pass the PMP Exam Tips and Techniques to Pass the PMP® Exam Dan Stober, PMP Introduction Passing the Project Management Professional (PMP)® certification exam can seem like a daunting task when project managers first decide to take the leap. Just like a project management plan, if you carefully map out your study plan, you will be successful. You must understand several key concepts, be intimately familiar with the five process groups and ten knowledge areas, understand project management terminology, and learn to think like PMI. It is also important to set study goals, create a schedule for success, and commit fully to passing the exam in order to obtain your PMP® credential. Following the best practices outlined here can put you on the road to certification and will have you prepared for your PMP® Boot Camp. Everything that you need to understand prior to Boot Camp is listed here. Terminology There is a large volume of terminology associated with project management, but there are some key terms that you must be aware of as you are preparing for your exam. Learning these terms before your PMP® Boot Camp will have you ahead of the game and not playing catch-up (these definitions are not taken word for word from the PMBOK Guide®, 5th Edition): Analogous Estimating: Estimating based on a previous, similar activity or project. Think of it as......

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...Definition of Management & Management Theory Management is ‘The art of getting things done through people’. (Follett et al., 1973) ‘Managers give direction, provide leadership & decide how to use resources to accomplish goals’. (Drucker, 1954) ‘Management is the attainment of organizational goals in an effective and efficient manner through planning, organising, leading and controlling organisational resources’. (Daft and Marcic, 2009) There are many definitions of management. Classical theorists such as Fayol and Taylor believed in applying universal principles to achieve ‘one best way’ of management. Henri Fayol emphasised ‘command and control’ and taught the five functions of management as; planning, organising, commanding, co-ordinating and controlling. Taylor in the Principles of Scientific Management (Taylor, 1911) taught that there was ‘one best method’ of management based on the scientific study of each task. Taylor would not have approved of the focus on the individual, as later developed by Elton Mayo using the Hawthorne experiments which highlighted the importance of social interaction (Mayo, 1949). The work of Mayo was a radical concept in its timeframe. In a review of approaches to management Crainer states that Mayo’s studies ‘were important because they showed that views of how managers behaved were a vital aspect of motivation and improved performance’ (Crainer, 1998). Given Taylor’s obsession with control and self-discipline, it is unlikely that he would......

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