How to develop entrepreneurship in Eastern India with focus on Odisha and

new ventures in plastics and textiles

Coordinated by

Presented by:

Indian Oil

Presentation - Outline

Start-up India and Start-up Odisha

About Eastern India and Odisha

Textile Industry

Q&A

Suggestions to Start-up Odisha

Petrochemical Industry

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What problems did you face in the initial days?

• “Investors didn’t believe that a common man can do this” • Many politicians from Odisha approached and promised to support but didn’t

deliver • “If Tesla would have asked, there would have been over funding”

Being an Odia, what made you set-up your company out of Odisha?

• No start-up culture in Odisha • “Start-up ecosystem is not welcoming” • Other state Government officials approached and provided necessary support to

set-up the business

What factors will boost start-up culture in Odisha?

Anecdote of a start-up

Eastern India Huge potential for investors in Petrochem and Textile sectors

Endowed with vast natural resources in terms of minerals, hydroelectricity,

coal, vast coast line with ports

Petrochemical producers serve as

raw material suppliers for

Petrochemical downstream

industries

Blessed with rich minerals including

coal, has hydropower

generating units and hence is

electricity surplus

Availability of employable and affordable work

force

Why Eastern India?

About Odisha

Odisha is also one of the top FDI destinations in India.

According to Dun & Bradstreet, the GSDP is expected to grow at a rate of 8.1% during 2015-2020

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01 The economy of Odisha is one of the fastest growing state economies in India.

Source: Wikipedia

Why Odisha?

Huge potential in Paradip Plastic Park for the development of Polypropylene based downstream industries such as PP Raffia, BOPP, Furniture based applications, PP Cast Film, PP Thermoforming, PP Non-Woven etc.

Potential

The Paradip Plastic Park Limited (PPPL) has been formed by IDCO, Odisha in 120 acres of land opposite to IndianOil refinery

Plastic Park

IndianOil is constructing a world class Polypropylene Plant To augment the energy requirements of Industries in Eastern India, a 5 MMTPA LNG terminal is jointly developed by IOCL, GAIL and Adani at Dhamra

Plants

Odisha PCPIR (Petroleum, Chemicals, Petrochemicals Investment Region) at Paradeep houses 15 MMT world class refinery of IndianOil, Fertilizer plants of Paradip Phosphates and IFFCO

PCPIR

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2012-13 2013-14 2014-15 2015-16 2016-17

Trends in Real Growth Rate

India

Odisha

49241

54241

56768

52516

61678

0 10000 20000 30000 40000 50000 60000 70000

2012-13

2013-14

2014-15

2015-16

2016-17

Per Capita Income

Per Capita Income

Overall Macro Scenario - Odisha

Increasing State Economic Growth indicates higher output & increased demand

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Increasing per capita Income reflects higher buying power 02

Share of Industries and Services – 80.09% (2016-17) 03

Source: Economic Survey 2016-17

THE COMPETITIVE ANALYSIS

SWOT ANALYSIS

• MSMEs can be started at a very low cost

• Vast Coastline, hence Exports

• Ability to innovate rapidly and creatively

• Good Bargaining power

• Bangladesh’s outsourcing

• Fewer Downstream industries

• Polyester is cheap, hence, rural market of Eastern India stands as a good market

• Difficult to reach enough potential customers to establish a successful base of customers

• Lack of skilled personnel

• Lack of eco-system

• Changing customer needs

• Economic downturn

• Change in Central Government Regulation

• Entry of Rival firm(s)/big companies

Positive Negative

Exte

rna

l In

tern

al

Strengths Weaknesses

Opportunities Threats

Self Certification

Key Incentives by Startup India Scheme

Mobile App

Startup India Hub

Credit Guarantee Fund

Tax Benefits

Patent Registration

Faster Exits

Extending Support with a Fund of Funds

Support in Public Tender

Key Incentives by Startup Odisha Scheme

Product Development and Marketing/Publicity assistance

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03 Need based assistance

Monthly allowance

Start-up Ecosystem in Odisha

Monetary assistance up to Rs 15 lakh for new product development and marketing

Sustenance allowance of INR 20,000 per month

Strict timeframe-based assessments and disbursal of benefits

Team from Invest India with experience of the global start-up ecosystem has been extending critical knowledge support

24 incubators in the state

Simple one-page registration form

Petrochemical Industry: Current Scenario

• The global chemical and petrochemical demand is currently estimated to be around 590 MMT and is expected to reach 700 MMT by 2020

• The demand growth of Indian chemical and petrochemical industry is growing at around 1.5 times the GDP growth rate

• Despite this high growth, average domestic per capita consumption of Polymers is only about 10 Kg/capita and that of Polyester is 5 kg/capita

• The current level of import of chemical and petrochemicals in India is estimated to be around 10 MMT and is expected to reach a gargantuan figure of 45 MMT by 2030

700 MMT by 2020 1.5 times of GDP growth rate Polymer – 10Kg/capita 45 MMT by 2030

Fiction v/s Fact

Many believe that paper bags are more environmentally friendly than plastic bags because they are made from a renewable resource, can biodegrade, and are recyclable.

Plastic shopping bags outperform paper bags environmentally – on manufacturing, on reuse, and on solid waste volume and generation.

Paper v/s Plastics

S

• Vast deforestation

• Causes 70% more air pollution than Plastic bags

• Water consumption in production is 3 times that of Plastic

• 80% more solid waste

• Energy consumption is 4 times that of plastic

• Strong, odorless and water proof

• Excellent adhesiveness

• Moldable and have quality finishing

• Bioplastics are BPA-free products

• Bioplastics are biodegradable and smaller energy footprint

Paper Plastics

In India, consumption of plastic is 12 MMTPA in 2017, and would touch 20 MMPTA by 2020

Plastic granules produced from recycled plastics are used in road tarring works to enhance the strength and durability of the material

Wood plastic composite are more environment friendly and can be made using recycled plastics and the waste products of the wood industry

3D printing is an emerging technology and plastic fibres of different strengths and density are used as the construction material

Scope for Plastics

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Plastic offers a variety of practical, cost effective alternatives as well as advantages over traditional automotive production materials. •Light Weight •Easier to Produce •Design Flexibility •Parts Consolidation

Plastic Ventures

Venture Plastics supplies custom injection molding services and provide a consistent flow of good parts, eliminating the cost of scrap and rework

OK Play the manufacturers of India's first 100% indigenously designed and developed pollution free plastic body E-Vehicles, now drives into E- Two Wheeler segment

Gravita India Ltd one of the largest lead producer in the country, has forayed into plastic business by setting up a PET recycling plant in Nicaragua in Central America

The Plastic Bank acts as a broker for recycling companies that receive discarded plastic bottles from individuals in underprivileged communities, encouraging recycling and creating jobs

Textile Industry: Current Scenario

• India is the world’s second largest producer of textiles and garments after China

• The Indian apparel and textiles industry, currently estimated at around US$ 125 billion which is expected to reach US$ 230 billion by 2030

• Polyester fiber market demand in India is expected to grow at 6-7%

• Polyester is fast replacing conventional cotton fiber/viscose due to its cost competitiveness, ease of availability etc.

2nd largest producer US$ 230 billion by 2030 6-7% growth

Polyester- most prominent fiber amongst all man-made fibers

2nd $

Textiles of Odisha

Sambalpuri Sari is a traditional handwoven ikat or sari or saree wherein the warp and the weft are tie-dyed before weaving

Berhampuri Pata are heavy silk sarees with narrow borders, generally woven without any intricate motifs

Saktapar Sari, from the weaving looms of Sambalpur, Bargarh and Sonepur are identifiable by the double ikat checkerboard pattern (passapalli) and brocade border

Bomkai Cotton Saris from Ganjam district, named after a tribal village, have been influenced by tribal art, and are embroidered with temple spire patterns on the border

Sambalpuri Sari Berhampuri Pata Saktapar Sari Bomkai Sari

Why we fell?

Orissa handloom has fallen on bad days due to a variety of reasons like rising cost of inputs and materials, prevalence of age-old techniques, lack of proper marketing network and little scope for skill development

Less export orders due to reductions in inventories by global retail giants like Wal-Mart

Prices of raw materials like cottons increased

Indian textile industry put majority of its stock in spinning sector, ignoring other value adding sectors such as weaving and finishing; evident in the utilization of Technology Upgradation Fund Scheme

Infrastructure bottlenecks such as power

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Ventures in Textile

Two Apparel parks will be established near Bhubaneswar, Odisha as per the Odisha Apparel Policy

Fashion designers like Sabyasachi Mukjerjee and Rajesh Pratap Singh have been invited by the state government to work on a project with Orissa State Handloom Weavers' Cooperative Society and Sambalpuri Bastralaya

In Vogue Vari produces customised bags of all sizes and types in India and has a brand market in London, UK

Textile products for the vast festivals in India

Tribal population for cheap and indigenous labour

Employment opportunities for local weavers

Polyester foam and insulators

Wood Fiber Yarn Technology (avoids complex chemical processes and is environment friendly)

Where can start-ups target?

Our Suggestions to Start-up Odisha

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Skill Development Assistance

Tax Exemptions

Subsidy on Uninterrupted Electricity

Land Holdings

Collaboration with Skill Development Institutes to supply pre-trained skilled labors. Thus, saving opportunity cost and time invested in training

Providing tax exemptions in initial years, thus allowing firms to divulge more funds in research and development

Facilitating electricity subsidies and ensuring constant electricity supply to meet the dynamic technological requirements in a price sensitive manner

Providing land space to set up plant/ offices/ development center/ warehouse on lease. This will reduce capital requirement burden on the start-ups

Results

Efficient Workforce

Reduction in startup tax bill

Hassel-free production

Faster base set-up

Contact us Xavier Institute of Management

Xavier Square,

Bhubaneswar-751013, India

+91 - 674-6647777

facebook.com/XIMBhubaneswar

@ximbee

Thank You