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a starters guide

'Venture'

out with ewes


How to get
started in

sheep farming

EDI

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding
viable business opportunities in the state.

Starting pointers to help those


Sheep farming is a rewarding activity particularly for livelihood. However, it requires good planning and
persistent management of the farm to fetch you a decent earning.
Thanks to its agro-climatic conditions, rich alpine pastures and host to other natural endowments, the state
of Jammu and Kashmir is ideally suited for sheep rearing. Sheep has multifaceted utility for wool, meat,
skin and manure.
Market Snapshot:

1.
2.
3.
4.
5.
6.

Demand/consumption of Meat: 600 lakh kg


Local production : 310 lakh kg
Deficit/ imports: 290 lakh Kgs
Supply sources (local): chopans, Gujars, Bakerwals etc
Increase in demand (2 years) : 5-7%
Future projections: Will continue to grow at 5-7%

So, you think you are game for the trade? But be sure you are strong enough to raise sheep. Or,
have someone employed who is strong enough to flip sheep over for various activities such as
checking feet, trimming feet, shearing, vaccinating, birthing etc.

The activity is loaded with huge challenges and advantages as well


Take a look at opportunities

1.
2.
3.
4.
5.

Sheep farming is considered one of the most vibrant sectors for economic development
The market for meat is readily available
The production of wool, meat and manure provides three different sources of income
Sheep waste is a better garden fertilizer than horse or cow manure
Wool and manure have tremendous market within and outside the state. 75% of locally sheared wool
is exported
6. It has a good scope for expansion as foundation stock and flock can be multiplied rapidly
7. Construction cost for pen is low as compared to other similar activities
8. Equipments are provided by the department at subsidized costs
There may be some hiccups also

1.
2.
3.
4.

Pasture fields have shrunk due to illegal encroachment and occupation


Shearing machines are difficult to procure
No skilled manpower for wool extraction is readily available
Harsh winters may pose extra challenge to farmers

e interested in raising sheep

Money matters...
Capital Expenditures:
Capital Cost

Rs.11.95 lakh

a) Land

Owned/leased

b) Building

Rs. 4.90 lakh

c) Machinery/Equipments

Rs. 0.23 lakh

c) Livestock

Rs.6.82 lakh

Financials for setting


up a sheep farm 100
ewes and four rams
Returns (from sale of stock, wool and manure)
First year

Operational Cost
Grand Total

Rs.2.60 lakh
Rs.14.55 lakh

Rs.26,000

nd

Rs.4 lakh

rd

Rs.5 lakh

2 year
3 year

There are certain strict dos and don'ts


Do

1. Ensure the availability of land at a place having adequate green pastures around
2. Build mud sheds and take expert help
3. Ensure your farm has good road accessibility so that timely transportation of raw materials and stocks
is made
4. Meet people around to know if there are any apprehensions of hostility towards such kind of activity
5. Look for support in respect of availability of veterinarian in or nearby the area
6. Ensure a steady supply of fresh water and electricity
7. Get building permission from concerned local body
8. Get a pollution free certificate from State Pollution Control Board

Don't

1.
2.
3.
4.

Start the venture without proper planning and experience


Start with a flock of more than 100 ewes
Leave everything to the people or caretaker, your timely presence is must
Hire or purchase land without proper legal documentation

Relevant government departments to approach for

1.
2.
3.
4.
5.
6.
7.

Department of Sheep Husbandry for registration and expert advice


Department of agriculture for cultivation of green fodder to check fodder availability
Sher-e-Kashmir University of Agricultural Science and Technology for improved livestock
State Pollution Control Board for no objection certificate
Power Development Department (PDD) for electricity connection
Public Health Engineering (PHE) for water connection
Revenue department tehsildar, local body for land rent or lease purpose

Checklist:
Land

2.

Building

3.

Check various schemes at JKEDI

Buyers

6.

Hard coke iron bukharis


Feeding troughs
Waterers for drinking
Electric and water fitting appliances

Money

5.

Size: 1400 sq feet (Shed 1200 sq feet and two stores with 10X10 sq feet dimension)
Structure: Concrete with east-west orientation
Permissions: Revenue department, NoC from PCB, Electricity permission, water connection
permission, registration with Sheep Husbandry Deptt.

Equipment

4.

Area: 2 kanal
Nature: Hard
Legal documentation: Lease deed, no-objection from PCB

Households (on special occasions like Eid-ul-Azha, marriages)


Wholesale dealers
Retailers
Hotels and restaurants

Suppliers

Registered dealers of
Feed
Medicine
Equipments

designs /b9/info/p

1.

EDI

JKEDI
Business Assistance & Support Services

JAMMU & KASHMIR


ENTREPRENEURSHIP DEVELOPMENT
INSTITUTE

Disclaimer: Users of this document should not solely rely on the information contained here and are advised

to consult domain experts prior to the start of their venture based on the identified market opportunity.

a starters guide

White revolution
A possible dream in Kashmir

EDI

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding viable business opportunities in the state.

here is a great demand for establishing dairy farming units in Jammu and Kashmir
because the state is still miles away from attaining self-sufficiency in milk and milk
products.
According to an estimate, presently some 1,700 dairy units are required in the Kashmir so
the dependence on imports from neighbouring states is cut permanently.
Owing to its profitability and increase in demand, the sector has attracted a number of
educated youth who have set out their ventures and are running them relatively successfully.
Fundamentals of setting up a dairy farm

Market Snapshot

Demand/consumption for milk :


Local Production:
Imports from other states :
Liquid milk:
Skimmed Milk 5,000 tonnes (mixed in the ratio of 1:9) =

12.85 lakh tonnes per year


12.34 lakh tones per year
51,000 thousand tonnes per year
6,000 tonnes
45000 tonnes

Costs involved to set up a 10-cow unit

Approximate sales per year


By sale of 36000 litres of milk

Rs.9.0 lakh

By sale of gunny bags and manure

Rs. 0.3 lakh

Total Returns/Earnings

Rs.9.30 lakh

But, look before you leap into the trade


Do

Ensure the availability of land at properly raised place and away from residential area(300 m)/ water
bodies(250 m)
Build sheds with mud. This will keep them warm.
Purchase cross bred cows.
Choose from Jersey and Holstein Friesian breed because only they thrive in the moderate climate
of the Kashmir Valley. Jersey more preferable because of low green food requirements and high fat
content in milk
Select healthy, high yielding cows with the help of veterinary/animal husbandry officer of state
government, experts etc.
Purchase freshly calved cows/in late pregnancy. Age should be 3-4 years or should be in 2nd or 3rd
lactation.
Get the building permission from the local body

Don't

Construct concrete sheds because low temperature will threaten the survival of animal
Hire or purchase land without proper legal documentation
Construct sheds on marshy or swampy land
Purchase cows without expert help
Get tempted to purchase pure breed with high milk yield
The trade though fraught with risks has a great potential
to become a money spinner with quick returns

Opportunities

Continuous surge in domestic demand because consumption of milk and milk products is ever
increasing
Milk processing are rapidly coming up in the valley and the industry also needs good quality milk
New hotels, restaurants and small eateries are being set up in great numbers
Profit margin is significant

Challenges

It is a capital intensive activity and its profitability is influenced by a number of factors including nonavailability of owned land
Procurement of quality cross bred cows
Skilled labour charges are very high
Feed and Fodder costs are very high as the state battles fodder deficiency of 66 per cent and 80 per
cent of feed is imported

Relevant government departments to approach for

Department of Animal Husbandry, Kashmir for expert advice on breed selection


Sher-e-Kashmir Agricultural University of Science and Technology (SKUAST) for technical expertise
Revenue department (tehsildar, local body) for land registration
State Pollution Control Board for no pollution certificate
Power Development Department (PDD) for electricity connection
Public Health Engineering (PHE) for water connection

Checklist:
Land (pre-owned, leased or hired)

Area: 10 kanals
Nature: Raised land, ideally with adequate grazing area

Building

Shed for cows : 40 X 14 sq ft


Calf shed : 10 X 10 sq ft
Heifer shed : 10 X 10 sq ft
Feed Store : 10 X 10 sq ft
Structure: Muddy with concrete flooring
Permissions: Revenue department (tehsildar), Electricity permission, Water Connection permission

Equipment

Dairy Utensils(bucket, milk pails)


Milk cans (40 litres)
Motor driven chaff cutter
Hand pump with motor (Optional)
Milking machine
(Optional)

5 No.
5 No.
1 No.
1 No.
1 No.

Finances

Check various schemes at JKEDI

designs /b9/info/p

Suppliers
Registered Dealers of
Livestock
Feed
Medicine
Equipments
Buyers
Cooperatives
Milk Processing Plants
Households
Hotels & Restaurants
Milkmen
EDI
JKEDI
Business Assistance & Support Services

Source: Department of Animal Husbandry


Disclaimer: Users of this document should not solely rely on the information contained here and are advised
to consult domain experts prior to the start of their venture based on the identified market opportunity.

Count your
own

Broiler poultry farming in Kashmir at a glance

A huge gap between supply and demand of


poultry products in Jammu and Kashmir
makes the sector potentially a great
income generator for youth of the jobstarved state.
Poultry worth Rs.400 crore is imported
annually into the state. The Kashmir Valley
alone needs some 1,800 poultry farms with
a crop size of at least 1,000 birds per hatch
to attain self sufficiency. This will not only
create thousands of jobs but also help
reduce the capital outflow from the state.

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding
viable business opportunities in the state.

EDI

A quick look at the fundamentals


of setting up a poultry farm

Dos and Don'ts


Do

Ensure the availability of land at a well raised place


Select the location that is about one kilometer away from a residential area
Make sure it has a good road accessibility for raw material, stock transportation
Learn about any possible hostility apprehensions towards such kind of activity
Look for support in respect of availability of veterinarian in or nearby the area
Ensure your farm has adequate availability of water and electricity
Get building permission from concerned local body
Get the pollution free certificate from the Pollution Control Board
Avail facility of solar power if electricity connection not feasible

Don't
Compromise on the quality of land, it should not be marshy or swampy
Hire or purchase land without proper legal documentation
Setup a farm near to other poultry establishments
Setup a farm near a water body

Opportunities and Challenges


The road is laden with huge advantages

Huge market potential


Few players and untapped market
Good profit margin
Lesser investment than other livestock products
Quick returns from the stock/ hatch
Great scope for expansion

However, you may face stumbling blocks also

Less availability of suitable land


Stiff competition from imports as their production costs are low
Non availability of skilled manpower
No agricultural or industrial status to the sector
Limited availability of raw material like day old chicks, medicine, feed
Greater risk of diseases & infections outbreak

designs /b9/info/p

EDI

Disclaimer: Users of this document should not solely rely on the information contained here and are advised
to consult domain experts prior to the start of their venture based on the identified market opportunity.

a starters guide
EDI

Walnut

not a tough nut to crack

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding
viable business opportunities in the state.

Jammu and Kashmir produces some 3.5 lakh quintals of walnut every year, thus
contributing around 98 per cent of the total walnut output in India. Of this, the Kashmir
Valley alone produces 95 per cent and the rest is grown in Doda and Kishtwar districts
of the Jammu region.
The fruit also earns huge revenue in terms of foreign reserves as it is exported to
Europe where India has a close to 20 per cent of the market share.
Total requirement for walnut in India is projected to increase from 3.6 lakh quintals
produced currently to 7.25 lakh quintals by 202021. (source APEDA)

Picture this

Market snapshot

The state enjoys a near monopoly in the


fruit production. But it has only 136
processing units for the crop against a
total demand of at least 6,200 plants of
varying sizes. Isn't the market up for
grabs?

Total walnut production in the state: 3.5 lakh quintals


Major areas of production in the state: Kupwara, Pulwama,
Anantnag, Ganderbal, Budgam

Market scenario for Kashmiri walnuts (For raw and processed kernels)

Local consumption (including tourists):


Exports:
Major markets outside the state:
Processed in local industries:
Total unprocessed export:

10-15 per cent of the total production.


85-90 of the total production
Delhi and Mumbai
60-65 per cent
35-40 per cent

Walnut processing units needed in the state:

According to a survey, there are a total number of 136 walnut processing units of varying capacity in the state. The
actual demand of such units of different capacity (see the chart) as per the crop production is 6,181.

investments

Rs.10 lakh
Rs.25 lakh
Rs.50 lakh
Rs.1 crore
Rs. 3 crore
Rs. 6 crore

units needed

cumulative

Rs.10 lakh

5000

Rs.25 lakh

1000

6000

Rs.50 lakh

100

6100

Rs.1 cr

60

6160

Rs. 3 cr

20

6180

Rs. 6 cr

6181

Total capital cost


Land

Owned/leased/hired

Building

Pre-owned, leased or hired

Machinery/Equipments

Rs.600,000/

Operational Cost

Rs.400,000

What are the costs and


returns for a unit with
processing capacity of
30-35 tonnes
per year?
Returns
By sale of processed kernels

Rs.13,00,000/

Grand Total: Rs.10 lakh


By sale of (any other item)
Check list for setting up a unit with
an investment Rs.10 lakh

Building

Land
(owned or leased)

Size = one kanal


Nature = preferably in a non-residential area

Finances

Check various schemes at JKEDI

NA

Seed Capital Fund Scheme


Youth Start-Up Loan Scheme

Suppliers

Local farmers, local vendors,


Imports: All machinery and equipments

Buyers

Local: Vendors or people associated


with tourist trade
Exports: To pharmaceutical, food companies
or wholesale markets

Parameters: 50 feet by 30 feet by 13 feet (LxBxH)


Permission: Revenue, local bodies, communities and
the State Pollution Control Board

Equipment
1.Nut crackers (optional: manual cracking is preferred)
2.Crates (for storing kernels)
3.Trolley (for shifting material)
4.Dryer and separate trays
5.Size grader (for kernel grading)
a. Half big size
b. Half Small Size
c. 3 Piece
d. 4 piece 1/8
6.Colour grader (for final inspection belt)
7.Air Conditioner (to maintain temperature below 20
degrees Celsius for finished products)
8.Digital weighing Machine
9.Vacuum packaging machine
10.Generator (at least 20 horse power)

Challenges and opportunities

Like any other business, the road to success in the walnut industry may not be all rosy but at the
end what matters is financial returns. You guarantee your efforts, the trade promises you good profits
Here are some of the challenges the trade tests you with

Machines are to be imported from outside the state. 100% dependency.


Remember you are dealing with a delicate product. Kernel colour may degrade soon
Rates keep fluctuating in the absense of a defined regulation
There is rampant deforestation of the walnut trees in Kashmir
No significant local market for processed kernel
Stiff competition from outside the country

But there is brighter side to it also

Raw material is available in abundance locally


Climate is suitable for setting up the unit
Cheap labour
No specific skills needed
Demand is ever increasing because major portion of the product goes into medicinal use

Relevant departments

Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) - for training and financial
support
National Horticulture Board (NHB) - for expert advice
Indian Centre of Agricultural Research (ICAR) - for expert advice
Ministry Of Food Processing Industries (MOFPI) - for product safety certification
Agricultural and Processed Food Products Export Development Authority (APEDA)

Please ensure the following before stepping into the trade

Establish the unit outside of a residential area


Meet people around to know if there is any hostility for such kind of activity
Get necessary permissions from local bodies like panchayat, municipal committees or Pollution Control Board
Get TIN (Tax Information Network) for importing machines and exporting your products to other parts of the
country
Register your unit with the district office of Department of Industries and Commerce for various incentives offered
Get a certificate from Food Safety and Standards Authority of India (FSSAI) that certifies your product is
standardised. Department of health or Consumer Affairs and Public Distribution (CAPD) are local nodal agencies
Get pollution free certificate from SPCB particularly if you are using a high power generator or any other
machinery

Sources:
APEDA, National Horticulture Bureau and ICAR
Interviews: Dr Munazah, Research Associate, SKUAST

Disclaimer: Users of this document should not solely rely on the information contained here
and are advised to consult domain experts prior to the start of their venture based on the
identified market opportunity.

EDI

JAMMU & KASHMIR


ENTREPRENEURSHIP DEVELOPMENT
INSTITUTE

A starters guide to
mushroom cultivation

Your

EDI

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding
viable business opportunities in the state.

Introduction
Mushroom cultivation has been a great source of income for centuries even as the farming took
its organized shape in India only recently. The cultivation of this nutritious vegetarian delicacy -rich in protein, vitamins, minerals, folic acid and iron in controlled conditions started recently in
India.
The much-in-demand vegetable can be grown in a temperature between 20 and 30 degrees
Celsius and required relative humidity is 55-75 per cent. This makes Jammu and Kashmir a
suitable place for mushroom cultivation and processing.
Mushrooms are of different types:
a) Button Mushroom
b) Dhingri (Oyster)
c) Paddy Straw Mushroom
Market Potential
Market for mushroom is growing rapidly owing to nutritious values and special tastes. The main
consumers of mushrooms are Chinese food restaurant, hotels, clubs and households as well. The
growing domestic and export market as also the delicacy and food value provides extensive and
good potential for cultivation of mushroom. There is also growing market for processed, dried
and packed mushrooms as their shelf life is longer.
In 2011-12, the production of mushrooms was at 6,983.23 quintals, out of which 5,442 quintals
were from Jammu division and 1,541.23 quintals from Kashmir.
Steps to mushroom cultivation
For successful cultivation, careful attention has to be paid to three aspects good compost,
mushroom seeds and right temperature during growing period.
Natural compost is prepared from horse dung and wheat or barley straw. Some quantity of
chicken manure and three kilograms of urea per ton of compost can be added.
Mushrooms are grown in wooden trays or boxes of 100 cm x 50 cm x 15 cm. They are lled well
with the compost and pressed rmly leaving 3 cm clear space on top of the tray. The seed is
scattered on the surface of the compost which is then covered with a thin layer of compost.
After that the trays are covered with old newspaper sheets and water is sprayed to provide
humidity. The trays are then stacked vertically. At a temperature of around 24 - 25 degrees Celsius
white cottony mycelium (fungus) spreads and permeates through the compost.
It takes around 12 to 15 days for the complete spawn running.
Ultimately, the surface of the compost is covered with half to one inch level
of casing soil. It is sterilized to kill insects, nematodes and molds. The casing
soil is spread over plastic sheets and treated with formalin and stirred
frequently for a week to remove formation fumes. After casing, the
temperature has to be maintained at 24-25 degree Celsius for three
days after which it must be lowered to 18 degree Celsius. Thus, batches of
trays must be arranged in such a way that there is a regular production.

Mushroom Processing
Fresh mushrooms are washed in cold water and then blanched in boiling water for around 34
minutes. Then they are dehydrated in drier and packed. It is advisable to pre-treat fresh
mushrooms in a solution containing salt water to prevent discoloration.
Packing is very critical as formation of moisture contaminates mushrooms very quickly. Hence
plain cans and water of 2 percent salt and 0.2 percent citric acid are used for packing.

The cans are exhausted at 19O degree Celsius for 7-8 minutes, sealed and processed under
pressure for around half an hour. Yield of nal product depends up on the quality of dryer,
manufacturing process employed, moisture content in fresh mushrooms and moisture required
in the nal product. Hence, average yield is taken at 25 percent.
Costs for establishing 400 trays mushroom cultivation unit or four batches in a year
(in Rs)

Total Capital Cost


a) Land
b) Building (1000 sq ft)
c) Machinery/Equipments

9.77 lakhs
Leased/owned/hired
5.00 lakhs
4.77 lakhs

Operational Cost
Grand Total

1.80 lakhs
11.57 lakhs

Earning
Returns per batch from mushrooms
Returns per batch from compost used as manure (4 quantals)
Total returns per batch (mushroom + compost)
Returns from mushrooms/year (4 batches)
Returns from compost per year (4 batches)
Total returns per year (4 batches)

2.40 lakhs
0.04 lakhs
2.44 lakhs
9.60 lakhs
0.16 lakhs
9.76 lakhs

Yield Per batch: 4 kg/tray


Total mushroom yield from 400 trays: 1,600 kgs
Relevant Departments to approach for:
1) Department of Agriculture
2) Sher-e-Kashmir University of Agricultural science and Technology, Kashmir.
3) Center of Research and Development, University of Kashmir.
4) Krishi Vigyan Kendras

Jammu and Kashmir


amoung the best
places for mushroom
cultivation
and processing

Checklist:
Land
Area: kanals
Lease deed, No Objection Certicate from Pollution Control Board.
Building
Size of different sheds: 25 X 20 (2 Rooms)
Equipment
1. Stacking Trays/Wooden Trays
2. Spray Pump with two attachments
3. Water Tank
4. Thermometer
5. Weighing Scale
6. Hot and Cold AC
7. Disposable Gloves

400
1
1
1
1
2
5

Raw Materials:
1.
Wheat/ rice bran
2.
Poultry waste
3.
Urea
4.
Potash
5.
Choker
6.
Oil cakes
7.
Molasses
8.
Gypsum
9.
Peat soil
10.
Soil
11.
Spawn
12.
Waste paper/newspapers
Investment
Check various schemes at JKEDI
Buyers
Domestic Market like Households, Hotels and Restaurants.
National Market
Export Markets

designs /b7/info/p

Suppliers
-Registered dealers of:
- Equipments
- Chemicals
- Spawn
- Peat soil
- Molasses
- Gypsum

EDI

JKEDI
Business Assistance & Support Services

Disclaimer: Users of this document should not solely rely on the information contained here and are advised
to consult domain experts prior to the start of their venture based on the identified market opportunity.

Starter's guide to beekeeping

Honey
you can do it

EDI

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding
viable business opportunities in the state.

Jammu and Kashmir is said to be one of the most important and suitable beekeeping
places in India. Thanks to its vast diverse natural resources and favourable climatic
conditions that make the state as it should be for stationary as well as migratory bee
keeping.
Despite this, the state imports honey worth over Rs. 8.5 million from other states
annually because the potential for beekeeping in Jammu and Kashmir has not been
utilized fully. The state with a huge resources has a great potential for exporting honey
to the rest of India.

Here is a starter's guide for those who


want to taste this sweet success.
Market snapshot

Potential market size (Kashmir):


Rs. 77 crore or 770 metric tonnes
Potential market size (national):
Rs.190 crore
Local Production of raw honey in the Kashmir Valley:
250 metric tonnes
Honey processed locally:
75 metric tonne's (rest is sold outside for processing)
Imports:
Worth Rs 8.6 million (Processed honey)
Registered bee keepingcolonies in the Kashmir Valley:
25,000
Potential no of colonies in the valley:
250,000
Apiculturist:
200

Primary products:

High quality honey from hives


Non-pasteurized liquid and creamed honey

Secondary Products:

Bee wax
Candles
Chapsticks
Cosmetics etc

Financials involved for a hive of 20 colonies:

Sales rst year

Do

Speak to experts or beekeepers for an advice before setting up the venture


Start you business at an appropriate seasons not too early, not too late
Procure strong colonies and all the tools required to look after bee hives
Purchase quality wooden boxes for colonies
Select location with abundant flora
Avoid jerks and unnecessary noise in the area
Keep your initial purchases to the things you absolutely need to get started: hives, bees, a smoker and
protective gear

Don't
Hire or purchase land without proper legal documentation.
Construct colonies on marshy or swampy land
The place should not be crowded with people
Use excessive sugars
The trade by its nature is very sweet with low start-up cost and quick returns. However, it may cause some
bitterness if proper care is not taken.
Challenges you may face include
Extreme weather conditions can pose a significant threat as it can affect the rearing and production process.
Bee keeping is prone to diseases and attacks from mites and other insects. This can eventually destroy the

whole colony.
Opportunities
Lower start-up costs
Demand for quality honey especially Kashmir brand in the country is huge and increasing
High quality Kashmiri honey has major competitive advantage over other producers and greater scope for

export

Product diversification chances are high with bee wax, chapsticks, cosmetics and candles

Checklist:
Land

Area: Two kanals


Nature: Agricultural Land (area rich in fauna is ideal)
Land if not owned, legal Documentation required: Lease deed

Building

Shed 12X10 sq ft

Relevant government departments to


approach for

Equipment
Hive Tool

Smoker
Bee hive and veil

Department of Agriculture, Kashmir for expert


advice
Revenue department (for land documentation)

Hive stand
Comb Foundation Roller
Honey extractor
Wax sheet
Protective gear
Gloves
Frame gripper
Money

Check various financial schemes at JKEDI

Buyers

Households
Whole sellers & dealers
Mainly exported to outside market for further processing of honey products.

Suppliers

Registered Dealers of
Bee hive colonies
Medicine
Equipments
JKEDI
Business Assistance & Support Services

(Sources: Market survey done by Mercy Corps and interviews with beekeepers by JKEDI)

EDI

JAMMU & KASHMIR


ENTREPRENEURSHIP DEVELOPMENT
INSTITUTE

Disclaimer: Users of this document should not solely rely on the information contained here and are advised

to consult domain experts prior to the start of their venture based on the identified market opportunity.

a starters guide

Leather

A starter's guide to leather tannery


in the Kashmir Valley

EDI

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding viable business opportunities in the state.

People in the state of Jammu and Kashmir, particularly from the valley, are known to
be voracious meat eaters. Every year the state consumes around five million animalssheep, goats and cattle (as per the industry figures). This also generates a pile of raw
material for leather industry in the form of skins and hides.
But the raw material is not used to its full potential because the state doesn't have a full
fledged leather industry. That forces people in the trade to sell off these hides at
throwaway prices outside the side.
Market Snapshot

According to industry estimates, Kashmir leather industry has the potential to generate Rs.600 crore
annually to the state economy. But the potential has not been exploited fully.
On an average 3.5 million sheep and goat skins plus 1.2 million cattle hides are produced in the
market every year. These hides go out from Kashmir at an average price of about Rs.175 each and
return processed at the rate of Rs.700 per skin.
There are only a few tanneries in the state. Therefore, the market is primarily untapped.
Financials involved
How much does it cost to set up a leather tannery with processing capacity of
2,800 sq ft or 140 animal skins per day

Sales/earning

Note: The cost may vary with market fluctuations. The above costing has been done for a minimum capacity leather tanning unit (2800 sq ft)
which require four drums for soaking, liming and tanning of 1,100 kg each.

So you are up for having a leather tannery ?


Take a look at must dos and don'ts rst.
Do

Ensure adequate and suitable water, sewage, electrical, and transportation facilities at the plant site
Be sure that necessary raw materials are available in suitable quantity, quality
Check market prices as they fluctuate quite often

Don't

Open the unit near a residential area


Hire or purchase land without proper legal documentation
Construct building structure on marshy or swampy land

Opportunities

Huge availability of land for leather tannery activities at state industrial areas
Hides sent outside to the state for tanning which results in loss of crores of rupees
Leather products are used across different industries like sports, furniture, garments and
accessories, shoes, automobile etc and therefore has a huge potential for employment and revenue
generation

Challenges

Skilled labour scarcity


Can cause environmental hazards in the absence of a proper effluent treatment plant
Is highly capital intensive activity and finances may pose a challenge
Getting people to tan the leather is difficult because it has perceived health issues
Spare parts for machinery are not easily available in the local market

Relevant Govt. departments to approach for


Industry and Commerce Department for tannery licensing
State Pollution Control Board for pollution free certificate
Power Development Department (PDD) for electricity connection
Public Health Engineering (PHE) for water connection
State Industrial Development Corporation (SIDCO) for land allotment in an industrial area

Checklist:

Land

Area: 05 kanals
Nature: Industrial area
Lease deed with SIDCO

Building
Size of different sheds

Shed for machinery


Raw material (sheep)
Raw material (cow)
Storage for wet blue leather
Office

: 35 X 25 sq ft
: 20 X 20 sq ft
: 20 X 20 sq ft
: 30 X 20 sq ft
: 10 X 10 sq ft

Equipment

Soaking drum
Liming drum
Tanning drums
Flashing machines

1 No
1 No.
2 No.
2 No.

Money

Check various finance schemes with JKEDI

Buyers

Leather and leather product manufacturing industries


designs /b9/info/p

Suppliers

Registered dealers of
Chemicals (from outside the state)
Machinery and equipments (from outside the state)

JKEDI
Business Assistance & Support Services

EDI

JAMMU & KASHMIR


ENTREPRENEURSHIP DEVELOPMENT
INSTITUTE

Disclaimer: Users of this document should not solely rely on the information contained here and are advised

to consult domain experts prior to the start of their venture based on the identified market opportunity.

A starters guide to
manufacturing of Corrugated boxes

Corrugated Packaging
An out of the box
business opportunity

EDI

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding
viable business opportunities in the state.

Introduction
Industrially pre-fabricated boxes are primarily used for packaging goods and materials. It is one of
the fast growing industries in all over India and also in our state. The business has witnessed a
signicant jump in the last decade because of huge growth in processed food, fruits and
vegetables, electronic and consumer durables industries.
Market snapshot: India is the world's third largest apple producing country only behind China and
the United States. The major portion of the produce comes from our state.
However, rude packaging in wooden boxes is telling upon the industry that forms the backbone
of the state's economy.
Other states where apples are grown are using corrugated cardboard boxes. However, most of
growers in Jammu and Kashmir still use wooden boxes to pack the fruit, even as the trend has
started shifting.
The packaging tool has turned out to be the most popular goods transporting container. Industry
experts in the state are of the view that it will soon become indispensable for the Rs.4,500 crore
horticulture industry of Jammu and Kashmir, which houses Asia's second largest fruit market
and employs thousands of farmers and people related to the sector.
Opportunities
-

It's a huge industry and growing: Corrugated packaging is a Rs.2 billion a year
industry in India. In another ve years, over 90 percent of all products in India would
be delivered or displayed in corrugated. It is an industry that will survive well into the
next century, and beyond.

It's everywhere and everybody needs it: People outside the state have occupied the
space but in Jammu and Kashmir the vacuum remains unlled. Everybody wants it
because it is cost-effective, lightweight, functional, versatile and sustainable.

Corrugated is "green": Corrugated is the most recovered form of packaging, with


91 percent of all containers produced being reclaimed for recycling.

The process
The process of manufacturing boxes or containers constitutes ve operations.
i)

Slitting and longitudinal cutting

ii)

Creasing

iii)

Slotting

iv)

Flap or corner cutting

v)

Stitching

After passing the sheet through these operations, a box or container is ready. Slitting and creasing
operations can be simultaneously carried over a four bar rotary cutting and creasing machine.
The trimmed and creased sheet is slotted and ap cut on an eccentric slotted machine. Finally, it is
either stitched over a stitching machine or glued/taped manually. For partition boxes the half
slotted boards are used which can conveniently be produced over a partition spotter machine.
Types of corrugated board:
1.

Single face/two ply

2.

Single wall/3-ply

3.

Double wall/5-ply

4.

Triple wall /7-ply

Raw materials used:


1.

Kraft paper/duplex paper

2.

Gum/adhesive

3.

Binding cloth

4.

Adhesive tape

5.

Stitching wire

6.

Printing ink

Economics of the project


Basis & Presumptions:No. of working days/year

300

No. of shifts/day

Single

No. of working hours/shift

Production capacity per annum

450,000 Boxes

Total Capital Cost


a) Land
b) Building (5800sq.ft)
c) Machinery/Equipments

Rs. 57.00 lakh


Owned/Leased/Hired
Rs. 22.00 lakh
Rs. 35.00 lakh

Operational Cost (For 1 Month)


Grand Total

Rs.10.00 lakh
Rs. 67.00 lakh

Relevant government departments to approach for

Revenue department (Tehsildar, Local Body)

District Industries Centre (DIC)

State Industrial Development Corporation(SIDCO) for Land Allotment

Small Scale Industrial Development Corporation Limited (SICOP)

State Pollution Control Board

Power Development Department (PDD)

Public Health Engineering (PHE)

Bureau of Indian Standards

Checklist:
1.

Land (pre-owned, leased or hired)


Area: 1.5 - 2 kanals
Nature: Industrial Estate is usually preferred

2.

3.

Building
Processing hall

50 X 70 ft.

Raw material store

20 X 40 ft

Finished goods store

50 X 30 ft.

Machinery Required:
1.Heavy Duty H/S Single Facer Paper (Oblique Type) Bearing Mounted . (Size: 52)
2.Reel to Sheet Cutter Machine. (Size: 54)
3.Sheet Pasting Machine. (Size: 75)
4.Sheet Pressing Machine. (Size: 65x75)
5.4 Bar Rotary Slittering & Creasing Machine.(Size: 75)
6.Eccentric Slotting Machine. (Size: 75)
7.Box Stitcher Straight/ Angular Machine. (Size: 42)
8.Die, Punching and Creasing Machine. (Size: 39x52)
9.Double Colour Paper Flexo Printer Machine. (Size: 52x72)

4.

1 no
1 no
1 no
1 no
1 no
1 no
1 no
1 no
1 no

Finances
Check various schemes at nancial institutes like J&K Bank and DIC and JKEDI

5.

Suppliers
Registered dealers of
Equipment
Machinery
Raw materials

6.

Buyers
Dealers
Manufacturing units
Packaging units

designs /b9/info/p

Exporters of fruits like apple, strawberry and walnut

EDI

JKEDI
Business Assistance & Support Services
Disclaimer: Users of this document should not solely rely on the information contained here and are advised
to consult domain experts prior to the start of their venture based on the identified market opportunity.

A starters guide to
Hollow Block manufacturing

EDI

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding
viable business opportunities in the state.

Introduction
Hollow concrete blocks are substitutes for conventional bricks and stones in
building construction. They are lighter than bricks, easier to place and also
confer economics in foundation cost and consumption of cement. In
comparison to conventional bricks, they offer the advantages of uniform
quality, faster speed of construction, lower labour involvement and longer
durability. In view of these advantages, hollow concrete blocks are being
increasingly used in construction activities.
Market Snapshot
Hollow concrete blocks can be used for (a) exterior load bearing walls, (b)
interior walls, (c) Panel walls, (d) columns, (e) retaining walls and (f)
compound walls. In view of their versatile uses and properties, hollow
concrete blocks are in demand not only for household constructions but
departments/agencies engaged in construction including PWD, Housing
Boards and Urban Development Corporations, RoadTransport
Corporation and Forest Departments use hollow blocks because of cost
effectiveness.
Plant Capacity:
A small unit with a production of 800 blocks per day
The standard size of hollow concrete blocks is
(a) 4X8X16 inches
(b) 6X8X16 inches
(c) 8X8X16 inches
Production: 100 blocks /Hr
Duration of shift: 8 hours/day.
Daily production: 100*8= 800 blocks
Working days/year: 260
Annual production: 20.08 lakh blocks
Raw Materials:
The required raw material for such unit is:
1. Cement
2. Crusher Bajre and
3. Crusher dust

The annual requirement of raw materials for the production of


2.08 lakh hollow concrete blocks per year is as follows:
1. Cement: 270 tons
2. Bajre: 6 lakh sq feet
3. Crusher Dust: 4.8 lakh sq feet

Opportunities
1.
2.
3.
4.

The product demand is high


Units are eco friendly as compared to brick kilns
Future belongs to hollow blocks and can replace bricks because of
low cost and high strength
?????

Challenges
1. To keep up with the fast changing technology and machinery
2. Stiff competition in the market as more and more hollow block
units are being established in the market
3. Product designs are highly dependent upon machinery
4. Lack of skilled labourers
Relevant Govt. departments to approach for

Industries and Commerce Department


Pollution Control Board
Power Development Department (PDD)
Public Health Engineering (PHE)
State Industrial Development Corporation (SIDCO)

Financials of a unit with a production capacity of 800 blocks per day


Total capital cost
a) Land
b) Building
c) Machinery/equipments

(in Rs)

Owned/leased
Rs. 2.80 lakh
Rs.7.72 lakh

Operational cost per month Costs for


Production of 2,4000 blocks
Grand Total

1.11 lakh
11.63 lakh

Sales/Earning
Total Returns/Earnings
Sale of Blocks (24000 blocks) @ Rs 30

7.2 lakh
7.2 lakh

Checklist:
1. Land
Area: 1 kanal land for production purpose with concrete bed for laying
hollow Blocks.
Nature: Industrial area
Lease deed, No Objection Certicate from Pollution Control Board.

3.

Building
Size of different sheds
Shed
Open Storage area
Equipment
Concrete Block Making Machine
Cement Mixer with motor
Ramming moulds of following sizes
(a) Cavity 100 x 200 x 400mm
(b) Cavity 150 x 200 x 400mm
(c) Solid 200 x 200 x 400mm
Tipping Borrows
Generator
Water motor

2000 sqt feet


400 sqt feet
1 No
1 No.

4.

Money
Check various schemes at JKEDI.

5.

Buyers
Locals: - Local population consists of major portion of the sales.
construction companies
Exports: - till date we are not exporting anything from it but we import
the heavy items of concrete nature like Cement Pole, Cement Tiles
(Finished and Un Finished), Cement Bricks

6.

Suppliers
Locals: - Main Suppliers are cement Manufacturers like SAIFCO,
TCI MAX, KHYBER, CEMTAC, JK CEMENT, STAR Cement etc and Crusher
machines are supplying the BAJRE and DUST.
Imports: - cements like ACC, AMBUJA
Others: - 100 % Machines are imported but are available at local with
their distributors.

EDI

JKEDI
Business Assistance & Support Services

Disclaimer: Users of this document should not solely rely on the information contained here and are advised
to consult domain experts prior to the start of their venture based on the identified market opportunity.

designs /b8/info/p

2.

A starters guide to
manufacturing of wire nails

YOUR SUCCESS

EDI

The document is part of a series of information products providing


snapshots to young aspiring entrepreneurs regarding
viable business opportunities in the state.

Introduction
Jammu and Kashmir, particularly the valley, is witnessing a construction boom particularly in
suburban areas. This has hugely increased the demand for building materials, including wire nails,
which is expected to keep up with the upward trajectory for many decades to come.
According to industry inputs, only four percent of the total demand in met by local production
and for the rest, the state depends on outside produce for the unsatised demand.
There are about 300 designs of nails around the world but in our state square nails are in vogue.
They nails are made from coils of metal wire which is fed into a nail-making machine that
produces up to 700 nails per minute. The nails are then further twisted or formed, cleaned,
nished, and packaged.
Market snapshot for Kashmir
According to the industry, the Kashmir Valley, where people popularly use wood frames for door,
windows and cupboards, alone consumes nails worth Rs.30 crore every year. Of this, the domestic
production accounts for just Rs.1 crore. That leaves a huge gap for new players to foray into.
In the valley, there are industries barbed wire, chain link fencing, crate mesh and wire nails. There
are thirty units across the Valley producing these items, out of which only few units manufacture
wire nails.
Opportunities:

There is a yawning gap between demand and supply


Corrugated tin roong in the valley has no alternative
A huge wood work is prevalent
Since construction in the valley is at a boom nails are also required for shuttering purposes

Challenges:

Less availability of raw material


It is a capital and labour intensive industry
Management of scrap and waste material is difcult
Dearth of highly technical people to run the unit
Retention of technical people

Investment cost for setting up a of 32-ton per month capacity unit


Capital Cost
a) Land
b) Building
c) Machinery/equipments

Rs.20.00 lakhs
Leased/rented
Rs.8.10 lakhs
Rs.11.90 lakhs

Operational Cost
Grand Total

Rs.17.20 lakhs
Rs.37.20 lakhs

Sales per month


By sale of 30.4 ton @ Rs.75000/ton(with 2%-5% wastage) (current market rate) Rs.22.80 lakhs
Total Returns/Earnings
Rs.22.80 lakhs
Relevant government departments to approach for

Revenue department (Tehsildar, Local Body)


District Industries Centre (DIC)
State Industrial Development Corporation(SIDCO) for Land Allotment
Small Scale Industrial Development Corporation Limited (SICOP)
State Pollution Control Board
Power Development Department (PDD)
Public Health Engineering (PHE)

Checklist:
1.

Land (pre-owned, leased or hired)


-Area: 1 kanal
-Nature: Industrial Estate is usually preferred.

2.
-

Building (Civil engineering)


Processing shed
Finished goods shed
Raw material shed
Washroom

40X30 ft.
20X20 ft.
20X20 ft.
10X10 ft

3.
-

Machinery and Equipments


Nail making machine
Polishing drum
Tools and dies
Nail cutter grinder

5
1
10
1

4.
-

Finances
Check various schemes at JKEDI

5. Suppliers
-Registered Dealers of
Equipments
Machinery
Raw Materials
Jute Bags
Buyers
Dealers
Retail hardware stores
Contractors and suppliers

designs /b8/info/p

6.
-

EDI

JKEDI
Business Assistance & Support Services

Disclaimer: Users of this document should not solely rely on the information contained here and are advised
to consult domain experts prior to the start of their venture based on the identified market opportunity.

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