1

Madhya Pradesh: Means Business

Forest, Environment & Herbal

2

Overview

MP is the second largest State in the Country stretching over 308,000 sq kms.

The State is blessed with large mineral resources of coal, diamond, limestone, methane etc.

MP is among the top 4 states of the Country for industrial investments.

Per capita GSDP USD 369**

Manufacturing sector USD 8.5 bn**

(Registered & Unregistered)

Gross state domestic product (GSDP) USD 23,983.63 Mn**

Average growth rate 5.5% per annum

Advantage MP

Total electricity generation capacity 6,449.25 MW*

India’s first greenfield SEZ Indore SEZ

Industrial Centers 8

The State is centrally located

Investor friendly Government policies

Madhya Pradesh has one of the upcoming industrial base in India

Economic Snapshot Madhya Pradesh is emerging as a key growth center for the Country

Madhya Pradesh (MP) – State that means businessOverview

MP is rich in low grade coal suitable for power generation. Potential of hydro-energy generation. Installed power capacity (MP’s share)

Hydel Power Generation: 852.7 MW* Thermal Power Generation: 2,147.5 MW*

Power Electricity generation capacity at present is 6,449.25 MW and estimated to rise to a surplus in 2008-09

*Ministry of Power (powermin.nic.in) **Source: Indiastat.com (as on 23 Feb 2006)

3

RO

AD

NE

TW

OR

KA

IRP

OR

TS

RA

ILW

AY

NE

TW

OR

K

• The State is well connected with the rest

of India with almost 425 trains passing

through the State on a daily basis. Of

these 175 trains pass through the State

capital Bhopal alone.

• The total length of roads spanning MP is 67,600 kms.**

• National highways of 5,200 kms run through the State.*

• 18 National highways including trunk routes of Delhi-Mumbai, Delhi-Chennai, Delhi-Bangalore, Delhi- Hyderabad.

• The total length of State highways in the State is 9,885 kms.**

• Convenient linkages to western ports i.e. Kandla Port, Jawahar Nehru Port Trust.

• 25 airstrips.**

• Convenient air links from key Indian cities like Delhi & Mumbai to Bhopal, Jabalpur, Gwalior, Indore and Khajuraho.

• 5 operational airports.

• Indore airport has the capability of handling international cargo.

• An international airport proposed in Bhopal.

Enabling Infrastructure

MP IS CENTRALLY LOCATED AND WELL

CONNECTED WITH ALL MAJOR CITIES IN INDIA

*Source: Department of Road Transport & Shipping (morth.nic.in) **Source: www.destinationmadhyapradesh.com

INDORE BHOPAL

JABALPUR

GWALIOR

KHAJURAHO

4

Third largest producer of

cement in India*

12 blocks with reserves

totalling 2,585 million tons

of coal has been identified

Largest producer of pulses

and oilseeds in the Country

(~75% of soyabean

production)

31% of the State under forest

cover with a largely unexploited

species of rare, valuable

medicinal- herbal plants

Over 2,000 kms of roads

being developed with

Private Partnership (BOT)

Over 18,000 technical

graduates and 230,000

graduates add to workforce

each year

Over 144 BCM of coal bed

methane reserves available

Over 100 agricultural farms with

an area of over 20,000 acres is

available on lease to investor

India’s 1st operational

Greenfield SEZ at Indore

Favourable climatic

conditions for cotton

and over 40,000 power-

looms are driving the

textile industry

Availability of coal and natural gas

(G.A.I.L pipeline) along with support

from Government to make investment

in Thermal Power Plants lucrative

Offers diverse tourists destinations

catering to various segments of

tourism such as religious (Bhojpur),

eco/ adventure (Panchmari), heritage

(Sanchi, Khajuraho) tourism etc.

Madhya Pradesh: A Preferred Investment Destination

Various blocks available

for power, cement, iron

and steel units

*Source: www.mpsidc.org & Brochure: MP Means Business

5

0%

20%

40%

60%

80%

100%Vishakapatnam

Chennai

Greater Noida

Chandigarh

Jaipur

Indore

0

50

100

150Mumbai

Delhi

Bangalore

Chennai

PuneHyderabad

Indore

Bhopal

Ahemadabad

Mumbai(780 Kms)

(MPV - 1000) Pune(800 Kms)

(MPV - 206.51)

Bangalore(1400 Kms)

(MPV - 254.52)

Chennai(1430 Kms)

(MPV - 362.84)

Hyderabad(840 Kms)

(MPV - 257.9)

Delhi(740 Kms)

(MPV - 789.5)

Ahmedabad(570 Kms)

(MPV - 220.63)

Kolkata(1350 Kms)

(MPV - 613.19)

Key Markets

(Distance From Bhopal)

MPV – Market Potential Value

Source: (Reference: RK Swamy)

MP: The Right Place with the Right Environment

MP is centrally located. The State is at an easy distance from

all the key consumer markets in the Country.

DESTINATION MADHYA PRADESH

- Distances rounded off**Source: India Today (September ‘06 Issue)

Fastest mover* in overall

performance among the

big States in the Country.

Fastest mover in agriculture

Fastest mover in

infrastructure development.

Ranks 2nd in terms of

governance.

Ranks 3rd in terms of law &

order

Cost of skilled labour is USD

2.4/day vis-a-vis USD 3.5 –

USD 4.0/day in metros

* Fastest mover is the State where the rate of improvement between 2003 & 2006 was greater than that between 1991 & 2003

Bhopal and Indore have substantial cost

advantages, even when compared to other Tier

III and IV cities.

Savings in Office Space Rates

(A comparison of rates in Central Business Districts)

The cost of land is one of the lowest in the Country. Even central hubs such as Indore and Bhopal fare well against other cities in terms of low land cost.

(Estimated Values for Multi-product SEZs)

Savings in Land Cost

6

Industrial Policy: Catalyst for the InvestmentsThe Government of MP has devised an investor friendly industrial policy,

which is aimed at achieving global competitiveness. The policy emphasizes

on industrial growth in the state through adopting cluster approach,

establishing specialized infrastructure and offering favourable incentives.

The main thrust of this policy is:

• Establishment of a Madhya Pradesh Trade and Investment

Facilitation Corporation which would take decisions about

rationalization of taxes, facilities of mega projects and other related

matters.

• Enacting an Industrial Facilitation Act and to change the rules of

business with a view to make single window system decisive and result

oriented.

• Developing infrastructure for supporting the identified industrial

clusters

• Reviving closed down/ sick industrial units by granting special packages.

• Attractive incentive schemes.

CLUSTER APPROACH

• Indore – Pharmaceutical, Textile, Food Processing, IT, Auto Components

• Bhopal – Engineering, Biotechnology, Herbal, IT, Food Processing

• Jabalpur – Garment, Mineral, Forest & Herbal, Food Processing

• Gwalior – Electronics, IT, FMCG, Engineering, Food Processing

• Rewa – Refractories, Lime Stone, Forest Based

• Sagar – Mineral Processing

• Special package for Mega Projects on project basis by apex level investment promotion empowered committee headed by the Chief Minister.

• Industrial investment promotion assistance – 50% to 75% of commercial tax for 3-10 years

• Concessional registration charges and stamp duty exemption for Term Loans.

• Interest subsidy on term loan for 5 – years @ 3% to 5%.

• For thrust sector industries, 25% capital subsidy would be provided limiting up to a maximum of USD 56,000

• Land on 75% concessive rate for Mega Projects limited to USD 4.4 million.

• Entry tax exemption for 5 years.

• 5 years electricity duty exemption on captive power generation

• 15% capital subsidy to SSI up to USD 33,000 in backward areas

• Infrastructure grant up to USD 0.22 million crore for developing private sector industrial parks

• Partial reimbursement for Project report, ISO Certification, Patent and Technology Purchase cost

SPECIAL INCENTIVES

SP

EC

IALI

ZE

D I

NF

RA

ST

RU

CT

UR

E Crystal IT Park Indore

Food ParksMandsaur, Khargone, Chhindwara, Hoshagabad, Mandla and Bhind

Stone Park Katni

Herbal Park Rewa

Granite Park Chhatarpur

Life Sciences Project Bhopal

Apparel Park Indore (SEZ)

Gems & Jewellery Park Indore

7

Area Developed: 2,492 Hectares

Allotted: 1431 Hectares

Units established: 575

Major Groups: Tata, Ranbaxy, Eicher,

Bridgestone, Hindustan Motors, Kinetic,

SRF, S Kumars, Gajra, Nicholas Piramal,

Indorama, IPCA, Bhilwara

Special Infrastructure: SEZ, Crystal IT

Park, Food Park, Apparel Park

In a bid to build a competitive environment; industries and their ancillaries would be promoted in clusters based on the availability of raw materials,

skilled labour and market potential. Under this Industrial Policy through Madhya Pradesh Audyogik Kendra Vikas Nigam Ltd (MPAKVNs)

scheme, the State Government, has identified industrial clusters. Many of the industrial giants have their establishments in these areas, however 44% of

developed area is still untapped and open for investment.

Total developed area

7,147 Hectares

Total allotted area3,089

Hectares

Total units established

1,360

Growth centres 19

Doing Business Made Easy Through MPAKVNIN

DO

RE

AK

VN

Area Developed: 1,330 Hectares

Allotted: 618 Hectares

Units established: 286

Major Groups:HEG, Crompton

Greaves, P&G, Godrej, Lupin, IFB,

Oswal, Nahar

Special Infrastructure: ICD, Food

Park

Area Developed: 2,262 Hectares

Allotted: 800 Hectares

Units established: 326

Major Groups: JK, Surya Roshini,

Godrej, Grasim, Cadbury, Hotline,

Crompton Greaves

Special Infrastructure: ICD, Food

Park

Area Developed: 273 Hectares

Allotted: 115 Hectares

Units established: 121

Major Groups: Birla, Jaypee

Special Infrastructure: Integrated

infrastructure development centres

(IIDC)

Area Developed: 790 Hectares

Allotted: 125 Hectares

Units established: 52

Major Groups: Raymond, Hindustan

Petroleum, PBM, Ayur

Special Infrastructure: Stone Park,

Food Park

BH

OP

AL

AK

VN

GW

AL

IOR

AK

VN

JAB

AL

PU

R A

KV

N

RE

WA

AK

VN

Pithampur, Kheda, Dewas, Maksi, Megh Nagar

Malanpur, Malanpur Phase II, Banmore, Chainpura, Siddhgawan, Pratappura

Rewa, Waidhan

Borgaon, Maneri, Purena

Mandideep, Pillukhedi,

Mandideep Phase II

Source: MPSIDC

Sector Profile

Forest, Environment & Herbal

9

MP: Forest Capital of India

MP : Forest Snapshot

Herbal Market Scenario

MP : Herbal Potential

Concessions and Facilities for Herbal Industry

Investment Destination - Opportunities in Herbal

Investment Destination - Opportunities in Forest & Environment

MP: An Investment Destination

Way Forward

Sector Profile : Forests, Environment & Herbal

10

Madhya Pradesh has a forest area of 94689.38 sq. km which

constitutes nearly 31% area of the state. With a share of nearly 13% of

the total forest area of the country, MP has the largest forest covered

area among all the States in India.

The state has a diverse range of forest. The four key types are Tropical

Moist, Tropical Dry, Tropical Thorn, Subtropical broadleaved Hill forest.

There are three key forest formations, namely Teak Forest, Sal Forest

and Miscellaneous Forests. Further, Bamboo bearing areas are

widely distributed in the State.

Forest based industries are key contributor to the State’s economy and

provide employment to a large part of the population.

In 2004-05 forests and logging contribute 2.1% to the State GDP.

The total growing stock (volume of timber / wood) in MP is 50 mn cu.

m valued worth USD 55.5 bn.

Reserved 65.36%

Protected 32.84%

Unclassified 1.7%Non Forest

69%

Forest 31%

India 90.62%

MP: Forest Capital of India

MP 9.38%

MP

Forests are valuable sources of various medicinal herbs and aromatic plants

and are sole source of woody and non woody products such as timber, gums

and resins etc.

Forest Map of MP

Classification of MP land Mass

11

MP: Forests Snapshot

113

107

122

109

95

100

105

110

115

120

125

2002-03 2003-04 2004-05 2005-06

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

2001-02 2002-03 2003-04 2004-05 2005-2006 (till5/06)

0

0.5

1

1.5

2

2.5Timber

Fuel wood

Bamboo

Key Tree Species

Tinsa (Ougeinia Ogeinensis)

Lendia (Lagerstroemia parviflora)Khair (Acacia catechu)

Haldu (Adina cordifolia)Bija (Pterocaropus marsupium)

Saja (Terminalia)Sal (Shorea robusta)

Salai (Boswellia serrata)Teak ( Tectona grandis)

Production of Timber, Fuel wood and Bamboo

Lak

h C

u M

Lakh

nt

Revenue From Sale of Forest Products

*One standard bag of Tendu Leaves in Madhya Pradesh means 1000 bundles of 50 leaves each.

• MP’s forest reserves are a rich source of Timber, Fuel wood and

Bamboo. They are also a key source of minor forests products such

as Tendu, Harra, Sal Seed and Gums.

• MP is the largest producer of Tendu leaves in the country which is

the key raw material used for the production of “Biddi”. The average

annual production of Tendu Leaves in the state is around 2.5 mn

standard bags*.

• MP accounts for nearly 25% of all the Tendu Leaves produced in India

US$ Mn

Key Forest Products

Woody Products Nationalised Minor Forest Products Non-Nationalised Minor Forest Products

TimberSmall TimberFuel WoodBamboo

Tendu PattaSal Seeds Kullu Gum

Harra, All other gums, Satawar, Kalmegh, Giloe, Achar, Arjun Bark, Aonla, Gudnar, Chiratia, Nagarmocha, Beheda, Bael, Bhilwa, Mahua, Van, Tulsi, (more than 155)

12

Herbal Market Scenario As per the estimates of the WHO, nearly 80% of the world’s population depends on herbal

medicine for their primary health care requirements.

Global trade in medicinal plants is over USD 60bn in 2004 with an annual growth rate of

15%.

India is rapidly emerging as a key player for supplying medicinal plants to the world.

Estimated total value of products from Ayurvedic production in India is nearly USD 1 bn.

Exports of Ayurvedic medicines have reached a value of USD 100 million a year. Of the

total exports, about 60% is crude herbs, 30% finished product shipped abroad for direct

sales to consumers, and the remaining 10% is partially prepared products to be finished in

the foreign countries.

The Ayurvedic industry in India is dominated by around 30 companies. Key suppliers like

Dabur, Baidyanath, and Zandu, together contribute about 85% of India's domestic

market. Charak Pharmaceuticals, Vicco Laboratories, Emami Group, Aimil

Pharmaceuticals Ltd, Viswakeerthy Ayurvedic Pharmacy etc are few of the well-known

names in this sector.

Of late, leading players in the FMCG segment like the Hindustan Lever Limited (HLL)

are increasing their focus on Ayurveda.

Contract farming of medicinal plant species which are in demand in the foreign market is

seen as the key growth driver of the domestic herbal industry.

20502004

USD 60 bn

USD 5 Tn

Global Demand of Medicinal Plant

Source: WHO Estimates

With demand of herbal products increasing globally, the market presents substantial business opportunities for herbal companies in India.

Partially Prepared

10%

Finished Products

30%

Crude herbs60%

Break up of Ayurvedic Export Market

13

50

50

50

50

50

100

100

100

200

200

200

500

500

1000

1000 2000

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Bach

Sarpagandha

Gudmar

Nagarmotha

Giloy

Shatawar

Keokand

Essential Oils

Chandrashur

Kalmegh

Aloe Vera

Ashwaganda

Isabgol

Bel

Safed Musli

isabgol

Estimated Production Potential of key Medicinal Plants

MP: Herbal Potential With 11 Agro-climatic zones out of the total 16 in the country, MP is

well suited for cultivation of a large number of Medicinal and Aromatic

plants (MAPs).

The production of MAP’s in the State in 2004-05 was 20,000 tonnes

and is estimated to rise to 40,000 tonnes by the year 2009.

MP’s share in the national production of MAPs was 6.25% in 2004-05

and is expected to rise to 8.63% till 2009.

30% of the demand of Indian herbal industry is met by the herbal

collections centers of Madhya Pradesh.

MP is the natural habitat for over 50% of the herbs used in the

pharmaceutical industry and is the key source of raw material to

various herbal processing units across the country. The Government is

keen to develop MP as the key processing center for herbal products.

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

1999-2000 2004-2005 2008-2009

Tonnes

Increasing Annual Production of MAPs in MP

5.76%6.25%

8.63%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

1999-2000 2004-2005 2008-2009

MP’s Rising Share in National Production of MAPs

MT

14

Concessions and Facilities for Herbal IndustryTo facilitate the development of herbal industry, the Government of MP

extends various concessions and facilities to industries.

The key concessions offers are capital investment subsidy, interest

subsidy, concessional land rates, industrial investment promotion

assistance and entry tax exemption etc.

Exemption from electricity duty for 5 years

Exemption from stamp duty/registration charges

New industries are exempted from paying entry tax for five years from

the date of first purchase of raw material

Partial reimbursement of expenditure incurred on quality certifications,

ISO-9000, patent filing, BIS etc by the industries in the state.

Units with fixed capital investment of USD 2.2 million and above would

be treated as mega projects. 5 to 20 acres of land would be allotted to

such units at a concessional rate of 25% of the stipulated rate. Further

all such mega projects shall be eligible for special incentive package on

case to case basis

An industrial investment promotion assistance equivalent to 50%

amount of Commercial tax and Central Sales Tax (excluding

Commercial Tax on the purchase of raw materials) deposited by the unit

in the preceding year, would be given to the industry having fixed capital

investment between USD 0.2 million to USD 2.2 million for 3 years in

advanced district and for 5 year in backward district. The rate of

assistance is 75% for investment above USD 2.2 million.

Capital Investment Subsidy

Category of district % of subsidy on fixed Investment

Upper limit of subsidy (USD)

Backward A 15% 11,000

Backward B 15% 22,000

Backward C 15% 33,000

Special capital subsidy at 25%. To a maximum of USD 0.02-0.05 as per category, if the investment is more than USD 0.11mn

Interest Subsidy

Category of district Duration (Years)

Interest Subsidy

Upper limit of subsidy (USD)

Backward A 5 3% 22,000

Backward B 6 4% 33,000

Backward C 7 5% 44,000

No Industries Blocks 7 5% 44,000

Industrial Investment Promotion Assistance

Category of district Minimum eligible fixed capital investment (USD)

Duration (Years)

Advanced 5.5 million 3

Backward A 4.4 million 5

Backward B 3.3 million 7

Backward C 2.2 million 10The Government is keen to harness the natural riches of MP and is

vigorously promoting the development of herbal industry in the State.

15

Investment Destination- Opportunities in Herbal

Key Drivers for Herbal Industry

Abundant availability of raw herbs

Abundant cultivable land available

Mass scale cultivation of large number of species already initiated

Land available for industrial operations at economic rates

Single window clearance system for drug license

Lack of competition in herbal processing

Viable Herbal Processing Industrial Opportunities in MP

Aloe Vera gel extraction and spray dried powder manufacturing units

Herbal extraction units

Fractional Distillation units for essential oil production and refining

Ayurvedic drug formulation units

Food and vegetable colours and dyes

Production of concrete and absolute from flowers

Primary processing centers for raw herbs

Isabgol dehusking units

Herbal cosmetics production units

Perfume production units

Expeller units for producing Bio-diesel and Neem oil

Reimbursement of 50% of the total fees incurred on hiring

technical consultancy for getting GMP certification. With an upper

limit of USD 22,000 per project.

For participation in the international trade fairs and exhibitions,

entrepreneurs of herbal industries will be given financial assistance

of 50% on one half of the stall charges.

Registration fees charged by the importing countries for import of

herbal products will be reimbursed up to a maximum of USD 1100

and air fare to a maximum of USD 1100.

All concessions and facilities that are available to industrial units in

the backward districts will also be extended to units located in the

developed and advanced district such as Indore and Bhopal.

Relevant provisions of labour laws applicable in Special

Economic Zones will be applicable for existing and upcoming

herbal parks as well as the herbal and Ayurvedic industries.

Stamp duty waiver for Herbal and Ayurvedic industries in case

of change in name, collaboration, inclusion of partners,

reorganizations and for amendment in the lease deed for the next 3

years and also for entering into agreement with financial institutions

for getting financial assistance.

Small scale pharmaceutical industries will be given priority under

store purchase rules

Fast track clearances for setting up pharmaceutical and herbal

industries.

Special incentive Package for Herbal Industry• MP is the key supplier of raw material to the herbal industry across the

country. While MP has several success stories in the cultivation and

collection steps of the value chain; substantial opportunities now exist

for entrepreneurs in the post harvest process such as

manufacturing/processing, quality testing as well etc.

• To promote the growth and development of herbal industries in the

State, the Government of MP has announced a special incentive

package for the herbal industry.

16

Being the largest producer of Tendu leaves; MP is strategically the most

suitable location in the Country for manufacturing/ processing of tobacco

based products. The companies located in the State can save substantial

costs on raw material and transportation by establishing processing units for

the production of Biddi and related products.

The forests in the State are a key source of high quality timber yielding

variety of Teak and Sal which forms the backbone of the furniture industry.

Companies can set up the furniture units in the State and leverage following

key location advantages:

– 1) Proximity to raw material

– 2) Proximity to target markets

– 3) Proximity of ports for exporting products

Given its vast forests landscape and scenic vistas, eco-tourism and

adventure tourism opportunities are abound in MP. The State has nine

natural parks and 25 sanctuaries, which present an immense potential for

tourism and hospitality industry to flourish.

Significant opportunities exists for the development of handicraft industry

specially for the production of Bamboo based goods . Opportunities for

private participation are immense as there is a high demand for handicrafts

products in the foreign countries as well as in the domestic market. Further,

companies can leverage the availability of local inexpensive labour with high

skill sets in production of various forests goods.

Nagpur(350 Kms)

Lucknow(680 Kms)

Kanpur(600 Kms)

Mumbai, JNPT(780 Kms)

Pune(800 Kms)

Bangalore(1400 Kms)

Chennai(1430 Kms)

Bhubaneshwar(1200 Kms)

Hyderabad(840 Kms)

Delhi(740 Kms)

Jaipur(580 Kms)

Ahmedabad(570 Kms)

Kolkata, Haldia(1350 Kms)

Patna(910 Kms)

Key Markets

(Distance From Bhopal)

Vishakapatnam

(1310)

Kandla

(933)

Key Ports

(Distance From Bhopal)

Sanctuaries

Madhya Pradesh is Strategically

Placed for Forest Based Products

The forests resources of MP provides immense business opportunities for forests based product manufacturing.

Investment Destination- Opportunities in Forests & Environment

17

Environment protection and conservation is one of the key concerns of the

State Government. All the envisaged development plans in the state would

result in heightened commercial activities which is likely to put severe stress

on the State environment.

Due to the rapid industrialization of the State, the effluents discharge from the

companies specially chemicals & pharmaceuticals, will be a key

environmental concern.

Per capita waste generation in major cities in MP ranges from 0.20 Kg to 0.60

kg. The urban local bodies spends between USD 11 to USD 33 per ton on

solid waste for collection, transportation, treatment and disposal.

60-70% of the total amount is spent on collection, 20-30% on transportation

and less than 5% on final disposal. Most of the methods used by the

municipal corporation are unscientific and lack safe disposal techniques.

The State Government is keen on implementing key environmental protection

plants Which includes building up of collection stations for solid waste.

Significant opportunities exists for the commercial waste management

companies in the State both for solid waste management and also for the

effluent treatment plants.

Tobacco Industry

Timber Production

Paper Pulp

Eco-Tourism

Furniture Industry

Handicrafts

Bamboo products

Bio-diesel

Solid Waste Management

Recycled Goods Industry

Ke

y I

nv

es

tme

nt

Op

po

rtu

nit

ies

To utilize the large amount of waste land in

the State, the Government of MP has drawn

up plans to convert them into plantation

center.

Paper pulp producing trees would be planted

in next 5-7 years over one million hectares of

waste land.

The opportunities for commercial paper

production in the state is pegged at USD 1.5-2

bn.

Investment Destination- Opportunities in Forests & Environment

18

Way Forward

In collaboration with the international FMCG major Hindustan Lever Ltd , the

Government of MP has initiated efforts to promote the herbal industries of the

State. It has launched its proprietary brand “Vindhya Herbal” to market various

herbal formulations that are being produced in the state. All products are

processed employing current Good Manufacturing Practices.

Aonla Murabba Aonla Supari Aonla Powder Ashwagandha powder

Aonla Candy Aonla Aschar Aonla sherbut Amaltas powder

Arjun Powder Apamarg powder Bael Pulp Brahmi

Baichandi Bhringraj powder Bavachi Ayurvedic face packs

Banjira Baibidang Baheda Bach

Bijasar Bark powder

Bija glass (Tumbler) Babul Pods Powder Bhui Aonla Powder

Chiroji ( Achar fruit)

Dronpushpi powder Dhaora Gum Triphala

Gorakhmundi Giloy Gokharu Powder Gudmar powder

Gulbakavali ark Honey Hadjod powder Indrajau

Imli Kalmegh Karanj bark powder Jamun seed powder

Keoti Bark Konch powder Kamarkas Kulanjan

Maha Neem Bark Nirgundi Punarnava Mulethi

Palas Flower Rosha oil Shatawari pppowder Safed Musli powder

Senna Shankhpushpi powder Tulsi Cosmetic oil/ shampooKey

Pro

du

cts

Pro

mo

ted

un

der

Vin

dh

ya H

erb

al B

ran

d

Success Story : Vindhya Herbal The Government is keen to develop MP as the

key processing center for herbal products. The

natural advantage of the State coupled with

government initiatives makes MP an ideal

destination for investment.

The success of “Vindhya herbal” has

generated ample confidence among the

privates players to invest in the business

opportunities presented by the herbal

industry.

The key opportunities of investments are in

contract farming, contract collection centers,

herbal processing units, collaborative

manufacturing and setting up high quality

testing laboratories for testing medicinal plants

and products.

MP provides ample opportunities across the value chain of Herbal Industry

Contract Farming

Setting Big Processing Units

Collaborative Manufacturing

Government 3-tier Strategy

for Development of Medical &

Aromatic Plants Industry

19

Way Forward

MP has been successful in attracting several large

companies in the forest & forest based products segment.

By investing in the MP an investor can join the club of

companies such as Dabur, HLL, Baidyanath, Lupin, ITC

etc. This truly reflects upon the bio-diversity of the state

and the investor confidence.

There are over 32 contract farming companies operating in

the state and this figure has been rising substantially in the

recent past.

The increased production of certain products is the

indicator of increased activity in the state. For instance, the

production of lac has increased from 3,000 quintals in 2003

to 40,000 quintals in 2005.

There is also scope for teak and sal based furniture

business in the state.

The growth of the sector is likely to continue as a result of

increased demand for derived products of forest produce.

MP is the land of opportunities for Forest & Forest Based Products

KeyKeyInvestmentInvestment

OpportunitiesOpportunities

Jo

in T

he

Clu

b

Vijay Herbals & Essential Oils

Kasturi Herbal Farm

Sanwaria Herbal Farm

Devika Herbal

Omni Pharmaceuticals

Gewit Herbal EH

He

rba

l

Fo

res

t &

En

vir

on

me

nt

Opportunity Key Locations

Lac Processing

Seoni

Annupur

Honey Processing

Sheopur

Kalan

Wild MAPS Jabalpur

Katni

Opportunity Key Locations

Teak & Sal

(Furniture factory)

Chattarpur

Bamboo Balaghat

Jetropa -Bio-diesel Plantations

20

Madhya Pradesh Minor Forest Produce Co-operative Federation

Center for Entrepreneurship Development

Government of Madhya Pradesh

www.mfpfederation.com

www.cedmapindia.com

http://www.mpgovt.nic.in

Forest Department MP http://www.forest.mp.gov.in

Connecting Further