ImphalDPR PDF

Draft Detailed Project
Report
New Technology Centre at Imphal
(Aromatic & Medicinal Plant Sector)
Report No.: 2016-Delhi-0268
Submitted to
The Office of Development Commissioner - MSME

Ministry of MSME, Govt. of India
Maulana Azad Road, New Delhi -110008
Technology Centre Systems Program – Draft DPR for New TC at Imphal
05 August 2016
Director (Tool Room)

Office of Development Commissioner, MSME
Ministry of MSME
Nirman Bhawan, Maulana Azad Road,
New Delhi -110108
Dear Sir,
As part of our engagement to provide Consulting services for establishment of Program Management
Unit (PMU) for designing the project, undertaking the pre-project activities and providing
implementation support during the course of the Technology Centre Systems Program (TCSP), we
hereby submit the Draft Detailed Project Report for setting up of Technology Centre at Imphal for
your kind perusal. The deliverable has been prepared in accordance with our engagement agreement
dated 07 November 2013, and our procedures were limited to those described in that agreement.
This Detailed Project Report is based on inquiries of and discussions with:
► O/o DC MSME
► PSC
► Industry experts
► Officials of FFDC Kannauj
► MSME-DI Imphal
► Sector experts in Manipur
► World Bank Mission
We have not sought to confirm the accuracy of the data or the information and explanations provided
by the O/o DC MSME. Our work has been limited in scope and time and we stress that more detailed
procedures may reveal other issues, not captured here. The procedures summarized in our Draft
Detailed Project Report do not constitute an audit, a review or other form of assurance in accordance
with any generally accepted auditing, review or other assurance standards, and accordingly we do
not express any form of assurance. This Draft Detailed Project Report is intended solely for the
information and use of the Office of DC-MSME and is not intended to be and should not be used by
anyone other than this specified party.
We appreciate the cooperation and assistance provided to us during the preparation of this report. If
you have any questions, please contact the undersigned.
Very truly yours,
Amar Shankar, Partner – Advisory Services
Page 1 of 238
Disclaimer
This Final Detailed Project Report for development of technology centre at Imphal as part of
consulting services to establish a Programme Management Unit (PMU) for designing the project,
undertaking the pre-project activities and providing implementation support during the course of the
Technology Centre Systems Program (TCSP) has been prepared by Ernst & Young LLP (hereinafter
referred to as ‘EY’ or ‘Ernst & Young’ or ‘Us’) and delivered to the ‘Office of Development
Commissioner - Ministry of Micro, Small & Medium Enterprise (O/o of DC-MSME)’ (hereinafter
referred to as ‘the Client’).
The inferences and analyses made by EY in this report are based on information collated through
primary research, secondary research, discussions with the client personnel and key stakeholders
and our knowledge about the program and its objectives. EY has taken due care to validate the
authenticity and correctness of the information from various sources, however, no representations
or warranty, expressed or implied, is given by EY or any of its respective partners, officers,
employees or agents as to the accuracy or completeness of the information, data or opinions
provided to EY by third parties or secondary sources.
Nothing contained herein, to the contrary and in no event shall EY be liable for any loss of profit or
revenues and any direct, incidental or consequential damages incurred by the Client or any other
user of this report.
In case the report is to be made available or disclosed to any third party, this disclaimer along with
all the limiting factors must be issued to the concerned party. The fact that EY assumes no liability
whatsoever, if for the reason any party is led to incur any loss for acting upon this report, must be
brought to the notice of the concerned party.
© EY, 2016
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Acknowledgement
We would like to express our sincere gratitude to MoMSME and its officials for their involvement and
valuable inputs during the preparation of this DPR. Special thanks to Shri S.N. Tripathi (AS & DC,
MoMSME) and Shri R.K. Rai (Director-TR, MoMSME) for their proactive support and guidance to the
team during the entire process.
We would like to thank Shri SV Shukla, PD FFDC Kannauj and Shri Arvind Mudgal for their guidance
and valuable inputs during preparation of the DPR.
We would like to convey our sincere thanks to officials of MSME DI-Imphal for their support during
the on site visit for the proposed Technology Centre at Imphal. Further, we would also like to thank
officials of Commerce and Industries Department, Govt. of Manipur for their assistance in
conducting a workshop with representation from various stakeholders for discussion and inputs.
We must extend our sincere thanks to all the stakeholders like cultivators, industry players, and
master trainers who gave us their valuable time and insights with respect to various dimensions of
the aromatic and medicinal plant industry and its support requirements. Without their help, capturing
of the industry insights would not have been possible.
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Abbreviations
AICTE All India Council for Technical Education

CAD Computer Aided Design
CAGR Compound Annual Growth Rate
CAM Computer Aided Manufacturing
CCRAS Central Council of Research in Ayurveda and Siddha
CDGI Centre for Development of Glass Industries
CFTI Central Footwear Training Institute
CIHT Central Institute of Hand Tools
CIMAP Central Institute of Medicinal and Aromatic Plants
CITD Central Institute of Tool Design
CMC Construction Management Consultant
CNC Computerized numerical control
CNM Cluster Network Manager
CSIR Council of Scientific and Industrial Research
CST Central Sales Tax
CTR Central Tool Room
CTTC Central Tool Room & Training Centre
DIC Department of Industries and Commerce
DoNER Development of North Eastern Region
EHS Environment, Health, and Safety
EOAI Essential Oil Association of India
F&F Fragrance and flavours
FAFAI Fragrance and Flavours Association of India
FEMA Flavour & Extract Manufacturers Association
FFDC Fragrance and Flavour Development Centre
FMCG Fast Moving Consumer Goods
FRLHT Foundation for Revitalization of Local Health Traditions
FSSAI Food Safety and Standards Authority of India
FSSP Full Social Screening Process
FTIR Fourier Transform Infrared Spectroscopy
GAP Good Agricultural Practices
GC Governing Council
GC-MS Gas Chromatography-Mass Spectrometry
GDP Gross Domestic Product
GESIP Gender, Equity and Social Inclusion Plan
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GFCP Good Field Collection Practices

GLC Gas Liquid Chromatograph
GM General Manager
GoI Government of India
GSDP Gross State Domestic Product
GT&TC Government Tool Room and Training Centre
HPLC High Performance Liquid Chromatography
HPTLC High Performance Thin Layer Chromatography
HR Human Resource
IDTR Indo Danish Tool Room
IFRA International Fragrance Research Association
IIIM Indian Institute of Integrative Medicine
IIIP Indian Institute of Packaging
IPSSP Indigenous People’s Social Screening Process
IRR Internal Rate of Return
ITI Industrial Training Institute
JERC Joint Electricity Regulatory Commission
LA Location Attractiveness
LBI Livelihood Business Incubators
LC-MS Liquid Chromatography-Mass Spectrometry
MANIDCO Manipur Industrial Development Corporation Limited
MAP Medicinal and Aromatic Plants
MCX Multi Commodity Exchange
MoU Memorandum of Understanding
MPCB Manipur Pollution Control Board
MSME Micro, Small and Medium Enterprises
MTP Manufacturing Technology Partner
NABARD National Bank for Agriculture and Rural Development
NBRI National Botanical Research Institute
NCVT National Council on Vocational Training
NEDFi North Eastern Development Finance Corporation Limited
NEIAH North Eastern Institute of Ayurveda & Homoeopathy
NER North East Region
NMPB National Medicinal Plants Board
NPSP National Portal Service Provider
PAH Polycyclic Aromatic Hydrocarbons
PMU Program Management Unit
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PPDC Process and Product Development Centre

QA Quality Assurance
QCI Quality Council of India
R&D Research and Development
RFD Results Framework Document
RFP Resettlement Policy Framework
RIFM Research Institute for Fragrance Materials
SFAC Manipur Small Farmers Agri-Business Consortium
SFC State Financial Corporation
SIDBI Small Industries Development Bank of India
SIDC State Industrial Development Corporation
SIIDC State Industrial Infrastructure Development Corporation
TC Technology Centre
TDC Technology Development Centre
TCSP Technology Centre Systems Program
TR Tool Room
TRTC Tool Room & Training Centre
UPS Uninterrupted Power Supply
UV-VIS Ultraviolet-Visible
VAT Value Added Tax
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Revision History
Amendment
Version Issue date Prepared by Reviewed by
description
Aliya Bhandari
1.1 05 June 2016 - Dr. Milind Mujumdar
Rajkumar
Deegwal
Changes Aliya Bhandari

incorporated as
1.2 15 June 2016 Dr. Milind Mujumdar
discussed with Dr. Rajkumar
Milind Mujumdar Deegwal
Changes Aliya Bhandari

incorporated as
1.3 29 June 2016 Dr. Milind Mujumdar
suggested by Shri Rajkumar
S.V. Shukla Deegwal
Changes to financial Aliya Bhandari

model incorporated
1.4 18 July 2016
as discussed with Dr. Rajkumar
Milind Mujumdar Deegwal
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Table of contents
Executive summary ............................................................................................................... 15
1. Introduction................................................................................................................... 18
1.1 Background and project rationale ............................................................................. 18
1.1.1 Demographic overview and challenges ............................................................... 19
1.1.2 Country’s manufacturing objectives ................................................................... 20
1.1.3 Recommendations of XII plan Working group & Parliamentary Standing Committee 21
1.1.4 Technology Centres Systems Program ............................................................... 22
1.1.5 Key TCSP stakeholders ..................................................................................... 24
1.1.6 RFD of TCSP .................................................................................................... 27
1.2 Overview of existing MSME TCs ................................................................................ 29
2. DPR objective and approach ............................................................................................ 35
2.1 Objective ................................................................................................................ 35
2.2 Approach ............................................................................................................... 35
3. Framework for selection of industry/ clusters/ systems/ location for new TCs ..................... 38
3.1 Location selection framework .................................................................................. 38
3.2 Selection of Imphal location for setting up of new TC.................................................. 42
4. Fragrance and Flavour Industry Overview......................................................................... 45
4.1 Industry Overview ................................................................................................... 45
4.2 Global Value Chain .................................................................................................. 48
4.3 Research Institutions and Associations Associated with the F&F Industry ..................... 49
4.4 Case Study: Indian Mint Success Story ...................................................................... 49
5. Location brief ................................................................................................................ 54
5.1 Regional overview ................................................................................................... 54
5.2 Demographic profile of the district............................................................................ 58
5.3 Regional stakeholders ............................................................................................. 62
5.3.1 Government bodies.............................................................................................. 62
5.3.2 Industry associations and NGOs ............................................................................ 66
5.3.3 Leading manufacturers ........................................................................................ 67
5.3.4 Raw material suppliers ......................................................................................... 67
5.3.5 Financial institutions ............................................................................................ 68
5.3.6 Research Institutes .............................................................................................. 68
6. Opportunity and need assessment ................................................................................... 73
6.1 Global Market Scenario ............................................................................................ 73
6.2 Indian Market Overview ........................................................................................... 75
6.3 Opportunity for establishment of the TC.................................................................... 77
6.4 Opportunity in Imphal and the North East Region ....................................................... 79
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6.4.1 Primary Research ................................................................................................ 81

6.4.2 Supply, Demand and Potential for the TC ............................................................... 82
6.4.2.1 Supply............................................................................................................. 83
6.4.2.2 Demand .......................................................................................................... 85
6.4.2.3 Potential for the TC .......................................................................................... 86
6.4.3 Challenges and Opportunities ............................................................................... 90
6.5 Opportunities associated with other mega projects planned in the sector ..................... 95
7. Focus area for Imphal TC ................................................................................................ 97
7.1 Innovation and Development Centre ......................................................................... 99
7.1.1 Cultivation Support .............................................................................................. 99
7.1.2 Aromatic & medicnal plants value chain ............................................................... 100
7.1.3 Tissue Culture Lab ............................................................................................. 100
7.1.4 Process Advisory ............................................................................................... 101
7.1.5 Business Incubation ........................................................................................... 102
7.2 Processing and Value Addition Centre..................................................................... 103
7.2.1 Distillation ........................................................................................................ 103
7.2.2 Solvent Extraction ............................................................................................. 104
7.2.3 Fractionation .................................................................................................... 104
7.2.4 Stevia Processing .............................................................................................. 104
7.2.5 Honey Processing .............................................................................................. 105
7.3 Testing & Quality Assessment Centre ...................................................................... 105
7.3.1 Essential Oil Content .......................................................................................... 106
7.3.2 Physical Analysis ............................................................................................... 106
7.3.3 Chemical Analysis .............................................................................................. 107
7.3.4 Instrumental Analysis (Qualitative & Quantitative) ................................................ 107
7.3.5 Other Analysis................................................................................................... 108
7.4 Post Production Services Centre ............................................................................ 109
7.4.1 Packaging ......................................................................................................... 109
7.4.2 Certification ...................................................................................................... 110
7.4.3 Marketing ......................................................................................................... 110
7.5 Training Centre ..................................................................................................... 111
7.6 Industry collaborations and associations ................................................................. 115
7.7 Technology collaboration ....................................................................................... 118
8. Social and environmental safeguards ............................................................................. 122
8.1 Socio-economic profile of district............................................................................ 122
8.2 Social and environmental screening ........................................................................ 125
8.2.1 Social screening ................................................................................................ 125
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8.2.2 Environmental screening .................................................................................... 127

8.3 Gender equity and social inclusion strategy ............................................................. 130
8.4 Sample monitoring and reporting template .............................................................. 132
9. Clearances required and respective authorities ............................................................... 134
10. Manpower and human resource development.............................................................. 137
10.1 Proposed organisation structure ............................................................................ 137
10.2 Phase wise induction of human resources................................................................ 140
10.3 Roles and responsibilities ....................................................................................... 145
10.4 Governance structure ............................................................................................ 147
10.4.1 Selection of the Governance Model for the new TCs .............................................. 147
10.4.2 Composition of the Governing Council ................................................................. 150
11. Marketing plan of Imphal TC ...................................................................................... 155
12. Quality system ......................................................................................................... 163
13. Infrastructure and facilities ....................................................................................... 167
14. Expenditure pattern .................................................................................................. 177
14.1 Capital expenditure ............................................................................................... 177
14.1.1 Plant and machinery .......................................................................................... 177
14.1.2 Land & building cost........................................................................................... 178
14.2 Operating expenditure ........................................................................................... 178
14.2.1 Variable operating expenditure ........................................................................... 178
14.2.2 Fixed Operating expenditure ............................................................................... 179
15. Financial analysis...................................................................................................... 183
15.1 Key assumptions ................................................................................................... 183
15.1.1 Income assumptions .......................................................................................... 183
15.1.2 Project cost and financing .................................................................................. 189
15.1.3 Other financial assumptions ............................................................................... 190
15.2 Working capital and cash flow statement ................................................................. 191
15.3 Income & expenditure statement ............................................................................ 194
15.4 Balance sheet ....................................................................................................... 197
15.5 Profitability .......................................................................................................... 199
15.6 Sensitivity analysis ................................................................................................ 200
16. Environment, health and safety ................................................................................. 203
16.1 Proposed Activities ............................................................................................... 203
16.2 Management......................................................................................................... 203
16.3 Planning and design .............................................................................................. 203
16.5 Operation and maintenance ................................................................................... 209
16.5.1 Testing and calibration activities ......................................................................... 210
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16.5.2 Maintenance of the TC ....................................................................................... 211

16.6 Basic requirements for EHS management ................................................................ 211
16.6.1 Storm Water Management .................................................................................. 211
16.6.2 Fire risk management ........................................................................................ 212
16.6.3 Rain water harvesting ........................................................................................ 213
16.6.4 Sewage treatment plant ..................................................................................... 213
16.6.5 Ventilation system ............................................................................................. 214
16.6.6 Monitoring ........................................................................................................ 214
17. Key risks and mitigation ............................................................................................ 216
18. Conclusion ............................................................................................................... 224
19. Annexure ................................................................................................................. 227
19.1 Social screening for establishment of new TCs ......................................................... 227
19.2 Environmental Screening ....................................................................................... 230
19.3 List of Medicinal plants in Manipur .......................................................................... 233
19.4 Details of Stakeholder Discussions .......................................................................... 234
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List of Figures
Figure 1: TCSP eco-system..................................................................................................... 23
Figure 2: Location of existing and planned TRs & TCs ............................................................... 30
Figure 3: Global Supplier Hubs................................................................................................ 47
Figure 4: Location of Imphal................................................................................................... 54
Figure 5: Decadal Growth of population in Imphal West district .................................................. 58
Figure 6: Categories of Workers ............................................................................................. 59
Figure 7: Stakeholders of Imphal TC........................................................................................ 62
Figure 8: Indian Fragrance and Flavour Market Analysis............................................................ 76
Figure 9: Distribution of Medicinal Plants in India ..................................................................... 84
Figure 10: Hub and Spoke Model ............................................................................................ 87
Figure 11: Focus Areas of the TC ............................................................................................ 97
Figure 12: Key areas of incubation support ........................................................................... 102
Figure 13: Potential areas for collaboration or association with key stakeholders...................... 116
Figure 14: Manipur GSDP at Current Prices ........................................................................... 122
Figure 15: Sectoral Composition of GSDP .............................................................................. 123
Figure 16: Proposed organisation structure........................................................................... 140
Figure 17: Suggestive framework for marketing of TC ............................................................ 155
Figure 18: Positioning of marketing mix for proposed TC ........................................................ 156
Figure 19: Layout of Existing Building ................................................................................... 170
Figure 20: Net working capital requirement ........................................................................... 191
Figure 21: Cash flow closing balance ..................................................................................... 191
Figure 22: Net free Cash flows and Cumulative Cash flows ...................................................... 199
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List of Tables
Table 1: Result indicators of the RFD ...................................................................................... 28

Table 2: Existing TCs & TRs with focus sectors ......................................................................... 29
Table 3: Fragrance & Flavours Industry Components ................................................................ 46
Table 4: Imphal West district snapshot .................................................................................... 55
Table 5: Status of power, water, wind and rainfall in the region ................................................. 56
Table 6: Age distribution of Rural Population, 10 years and over ............................................... 59
Table 7: Age distribution of Urban Population, 10 years and over .............................................. 60
Table 8: Distribution of Rural Population, 10 years and over, by level of education ..................... 60
Table 9: Distribution of Urban Population, 10 years and over, by level of education .................... 61
Table 10: Prominent financial institutions in the region ............................................................ 68
Table 11: Total Global Consumption of Flavours and Fragrances by Region, 2012 – 2017 (US$
Millions) ............................................................................................................................... 73
Table 12: Climatic Condition and Plant Diversity in North East Region ........................................ 83
Table 13: Proposed list of machines for tissue culture ............................................................ 101
Table 14: Proposed list of machines for process technology and value addition ........................ 105
Table 15: Proposed list of machines for testing and quality assurance ..................................... 108
Table 16: Proposed list of machines for Packaging ................................................................. 110
Table 17: Details of specialisation, courses, duration and capacity intake ................................. 113
Table 18: Proposed list of machines for training..................................................................... 115
Table 19: Potential Areas for Industry Collaborations and Associations .................................... 117
Table 20: Educational institutions in the district ..................................................................... 124
Table 21: Health infrastructure in the district ........................................................................ 124
Table 22: Sample monitoring and reporting template ............................................................. 132
Table 23: Clearances required and respective authorities ....................................................... 134
Table 24: Sanctioned strength of key resources ..................................................................... 139
Table 25: Summary of phase wise induction of resources ....................................................... 143
Table 26: Department wise induction of fulltime resources ..................................................... 143
Table 27: Roles and responsibilities of proposed positions ...................................................... 145
Table 28: Comparison of Society Registration Act and Companies Act ..................................... 147
Table 29: Governing Council of Imphal TC ............................................................................. 150
Table 30: Suggestive marketing activities, ownership and timeline .......................................... 159
Table 31: Indicative certifications of quality systems .............................................................. 163
Table 32: Details of proposed infrastructure for Operations .................................................... 168
Table 33: Details of proposed infrastructure for hostel ........................................................... 171
Table 34: Details of proposed infrastructure for staff accommodation ..................................... 171
Table 35: Total built up area including circulation and stairs & walls......................................... 172
Table 36: Cost for development of TC infrastructures............................................................. 172
Table 37: Details of other infrastructure ............................................................................... 173
Table 38: Capital expenditure ............................................................................................... 177
Table 39: Plant & Machinery................................................................................................. 177
Table 40: Land & building cost.............................................................................................. 178
Table 41: variable cost assumptions ..................................................................................... 179
Table 42: Fixed Operating Cost assumptions.......................................................................... 180
Table 43: Manpower and salary assumptions ......................................................................... 181
Table 44: Key assumptions .................................................................................................. 183
Table 45: Production assumptions ........................................................................................ 183
Table 46: Training revenue assumptions ............................................................................... 186
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Table 47: Consultancy revenue assumptions ......................................................................... 188

Table 48: Project cost and financing ..................................................................................... 189
Table 49: Working capital schedule ....................................................................................... 192
Table 50: Cash flow statement ............................................................................................. 193
Table 51: Income and expenditure ........................................................................................ 194
Table 52: Balance sheet ....................................................................................................... 197
Table 53: Profitability with investment plant & machinery ....................................................... 199
Table 54: Sensitivity of IRR .................................................................................................. 200
Table 55: Potential environmental issues during planning phase.............................................. 203
Table 56: EHS issues during construction phase..................................................................... 205
Table 57: Potential hazards during cultivation and processing................................................. 209
Table 58: Potential hazards during O & M phase..................................................................... 211
Table 59: Risk & mitigation .................................................................................................. 216
Table 60: Environmental screening ....................................................................................... 230
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Executive
Summary
Page 15 of 238
Executive summary
Page 16 of 238
Introduction
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1. Introduction
1.1 Background and project rationale
India is one of the largest and dynamic emerging markets with vast economic potential. India’s GDP
in 2012 was USD 1.8 Trillion ranking 10th amongst all countries1. The objective of the Government
of India’s, 12th Five-Year Plan (FY2012–17) is to return to GDP growth rates in excess of 8 percent,
with strong emphasis on the manufacturing sector. Manufacturing has long been recognized as an
essential driver of economic development for most countries, as it has an important economic and
employment multiplier effect. The manufacturing sector will have to play an important role to take
Indian economy to a high growth rate trajectory and achieve the planned objectives. Micro Small and
Medium Enterprises play an essential role in the overall industrial economy of the country and
account for over 45% of India’s manufacturing output2.
Despite strong potential, India’s manufacturing performance has not been encouraging. The share of
manufacturing in India’s GDP has stagnated at around 16 percent3, compared to more than 30
percent (and growing) in some of the other Asian countries. India’s manufacturing sector has been
facing challenges, such as low value addition, low productivity, and less-than-desirable up scaling.
However, world-class production units that compete in the international market are also present in
India e.g. automotive sector.
The major constraints in the growth and competitiveness of India’s manufacturing sector are:
► access to finance (especially for MSMEs)
► access to technology and skilled manpower
► access to markets (domestic & export)
► infrastructure deficiencies
These constraints impact the competitiveness of MSMEs operating in both upstream and downstream
manufacturing industries.
In downstream industries such as fragrance and flavours, automotive, electronics, glass, leather,
toys etc., there is shortage of skilled labour and limited access to advanced technologies. These
industries include large numbers of MSMEs, often working as part of supplier networks of larger
enterprises and subject to increased international competition. Like other countries, the fragrance
and flavour industry has grown hand in hand with the growth of fast moving consumer goods (FMCG)
industry. The Indian F&F Industry is expected to increase from $800 million in 2013 to $1.2 billion
in 2019, growing at a CAGR of 8.4% from 2014 to 20194.
1
http://unstats.un.org/unsd/snaama/dnltransfer.asp?fID=2
2
http://www.dnb.co.in/Nashik2013/PDF/MSMEsInIndia.pdf
3
The Manufacturing plan - Strategies for accelerating growth of manufacturing in India in the 12th Five Year Plan and
beyond, Planning Commission
4
BCC Research: Global Markets for Fragrance and Flavours
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Upstream industries, such as the tooling industry, which consists of developing and manufacturing
of dies, moulds, casts, as well as testing and prototyping, serves as an interface between product
design and product manufacturing. The constraints to the growth and competitiveness of the Indian
tooling industry mirror the ones affecting manufacturing as a whole, as articulated above. The
scarcity of skilled workers and problems related to their retention, as well as the lack of access to a
high-quality design and prototyping facility has hurt growth.
1.1.1 Demographic overview and challenges
While India stands to benefit from an immense demographic dividend, with the largest youth
population in the world (around 66 percent of the total population is under the age of 35), it has an
overall employment rate of 4.7 percent (under usual principal status approach) and an overall labour
force participation rate of 50.9 percent5. For the country to gain from this demographic dividend,
skilling and up-skilling its youth are key priorities for the Government of India (GoI).
India has a labour force of about 470 million, of which less than 10 percent have received skills
training, either through formal or informal means6. About 13 million young people enter the labour
force annually. Despite the huge expansion of skills training provision during the 11th Five-year plan,
the country’s skills development system requires massive up scaling. In its 11 th and 12th Five-year
plans, India recognized that skill development is critical to achieve faster, sustainable and inclusive
growth on one hand, and to providing decent employment opportunities to the growing young
population, on the other. According to the National Skill Development Policy published in March
2009, India has set a target of skilling 500 million people by 20227. This program will play a bigger
role in the country’s plan by setting a target of skilling 150 lakh people within the next 6 years.
Global experience shows that a workforce with higher schooling and skill levels leads to higher
productivity and personal income. A 2011 study showed that students who attended three-year
vocational training courses at ITIs earned 25 percent more than two-year course students, who
earned 14 percent more than did one-year course students8. These results were also observed in a
2007 study showing that the returns on vocational training in India have been found to be 8 percent,
almost equivalent to the 8.4 percent related to an additional year of education. The same study
showed that, increased educational attainment by one year is associated with 5.8 percent higher
firm-level productivity in India9.
5
Report on the Third-Annual employment & unemployment survey (2012 – 2013) of the Ministry of Labor, Government of
India.
6
11th and 12th Five Year Plan
7
http://labour.nic.in/upload/uploadfiles/files/Policies/NationalSkillDevelopmentPolicyMar09.pdf
8
Vocational Training in the Private Sector (Goyal 2011)
9
The Knowledge Economy and Education and Training in South Asia (World Bank 2007)
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1.1.2 Country’s manufacturing objectives
Development of Indian manufacturing sector calls for deepening and recalibrating of economic
reforms that would strengthen the sector and make it grow faster and become an engine of inclusive
growth. To realize the potential of the manufacturing sector, Government of India has announced
National Manufacturing Policy in 2011 with the objective of enhancing the share of manufacturing in
GDP to 25% within a decade and creating 100 million jobs. It also seeks to empower rural youth by
imparting necessary skill sets to make them employable. Sustainable development is integral to the
spirit of the policy and technological value addition in manufacturing has received special focus.
The National Manufacturing Policy has six objectives:

► Increase manufacturing sector growth rate to 12-14% over the medium term to make it the
engine of growth for the economy. The 2 to 4 % differential over the medium term growth
rate of the overall economy would enable manufacturing to contribute at least 25% of the
National GDP by 2022.
► Increase the rate of job creation in manufacturing to create 100 million additional jobs by
2022.
► Creation of appropriate skill sets among the rural migrants and urban poor to make growth
inclusive.
► Increase domestic value addition and technological depth in manufacturing.
► Enhance global competitiveness of Indian manufacturing through appropriate policy support.
► Ensure sustainability of growth, particularly with regard to the environment including energy
efficiency, optimal utilization of natural resources and restoration of damaged/ degraded
eco-systems.
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1.1.3 Recommendations of XII plan Working group & Parliamentary Standing Committee
At present, the Office of Development Commissioner [O/o DC (MSME)], Ministry of Micro, Small and
Medium Enterprises, operates 10 Tool Rooms (TRs) and 8 Technology Development Centres (TDCs)
(both hereinafter called as TCs) spread across the country. The TCs have been providing technical
and vocational training programmes to more than 1,00,000 trainees annually including AICTE and
NCVT approved certification. The TCs also provide support to entrepreneurs, in the areas, such as
access to technology, testing and quality assurance and certification, consultancy services, etc. The
TCs primary focus is to improve access to advanced technologies and provide technical advisory
support to entrepreneurs and workers, as well as opportunities for technical skill development to the
youth at varying levels.
Considering the performance of existing TCs, the Department related Parliamentary Standing
Committee on Industry, in its 235th report submitted to Rajya Sabha on 4 May 2012 have
recommended as follows:
i) “The committee is impressed with the performance of the TRs established by the MSME
Ministry. These enable the youth to improve their skills and get employment opportunities.
The success of such TRs inspires confidence that establishment of more such institutions will
equip the young people with necessary ability useful in the expanding market and
manufacturing sector”.
ii) “The Committee strongly recommends that more money must be allocated for establishment
of TRs across the country. It is understood that MSME Ministry is also approaching the
concerned organizations within Government to get loan from International Financial
Institutions. If Planning Commission and Finance Ministry cannot allocate more funds for this
purpose, the necessary permission to MSME Ministry to get access to borrowings from
international banks may be given without delay. However, it is strongly recommended that
we must use our own resources for this cause, which is good for the youth of our country and
MSME sector”.
The evaluation of existing ten TRs was undertaken under GIZ–MSME Umbrella Programme during
2011. The experts have appreciated the performance of the existing TCs and have recommended
expansion of skill development activities and introduction of newer technologies in the TCs.
During the budget speech of 2013-14, following announcement was made;
Para 75: “TRs and TDCs set up by the Ministry of MSME have done well in extending technology and
design support to small businesses. I propose to provide with World Bank assistance, a sum of Rs
2,200 crore during the 12th Five Year Plan period to set up 15 additional Centres”.
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In pursuance of (i) the announcement made in the Budget (2013-14), (ii) the recommendations of
the Department Related Parliamentary Standing Committee on Industry in its 235th Report
submitted to Parliament (Rajya Sabha) on 4 May 2012, and (iii) the recommendations of the experts
after evaluating the performance of existing TCs, it was proposed to implement “Technology Centre
Systems Programme (TCSP)” at an estimated project cost of INR2,200 crore including World Bank
assistance of USD 200 million by setting up 15 new TCs and to modernize / upgrade existing TCs by
introducing latest machinery / technologies.
1.1.4 Technology Centres Systems Program
The Technology Centres Systems Program, a national program, seeks to enhance the technological
and skill base of MSMEs in selected manufacturing industries, via upgraded and new TCs (currently
called TRs and TDCs). The TCs will have as their mission to improve the competitiveness of MSMEs
across India – with a strong emphasis on low income states.
This will be achieved by providing an integrated suite of services to MSMEs on a fee basis, ranging
from providing them access to technology, access to skills and access to business advisory services.
TCSP will reinforce the technical capability of the TCs as well as their performance, by further
increasing the participation of the private sector in key decisions at both the national and local levels.
The TCs will support industry clusters across manufacturing value chains, both downstream and
upstream industries. These include fragrance and flavour, leather, glass, automotive, electronics and
tooling industries.
TCSP’s Program Development Objective has been defined to enhance the competitiveness of MSMEs
by improving their access to technology and business advisory services as well as skilled workers
through systems of financially sustainable TCs. The program seeks to establish 15 new TCs and
upgrade capabilities of select existing TCs and develop linkages between MSMEs, Indian and
international research institutes and leading manufacturers. This would include upgradation in
technology, land and building infrastructure and other associated infrastructure of the TC. The
program will connect leading practices contributing to advance technology, knowledge, skilling and
innovation which can be transferred to MSMEs served by each TC.
The competitiveness of MSMEs is impacted by various factors such as entrepreneurial drive of the
leader, market and customer dynamics, their access to technology, finance and business advisory
and availability of skill manpower. The TCs will shape the outcomes of the program by providing
MSMEs access to technology, business advisory and skilled manpower. So it would be possible to
measure the success of this program by measuring the offtake of these paid services of the TCs by
MSMEs. Therefore, the key indicators that will be measured are;
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► Number of enterprises paid for services rendered including placement services

► Number of long term trainees employed by industry, including MSMEs, within six months
after being trained at TCs
► TCs' gross profit before depreciation (not including land)
► Access to Technology
§ Revenue of TCs from access to technology activities (production support and
consultancy)
§ Capacity utilization of machines at TCs
§ Number of technology strategies/roadmaps developed by TPs and endorsed by Industry
Associations and IC
► Access to Skilled Workers
§ Number of trainees trained (direct program beneficiary)
- external trainers trained
- with newly developed contents
- female
- from low income states
- from disadvantaged section of society (SC/ST)
§ Number of skills development contents (e.g. curricula, standards, certification schemes)
developed and adopted by industry associations, and/or certifying agencies
► Access to Business Advisory
§ Number of needs assessment and related business plans developed by CNMs and
endorsed by Industry Associations
§ Value of TCs' businesses generated with support of Cluster Network Managers
In addition, intermediate result indicators are designed to monitor critical progress towards
achievement of the PDO with primary emphasis on market- Figure 1: TCSP eco-system
tested outputs of the TCs supported by Technology Partner
and Cluster Network Manager. Examples of such indicators
include capacity utilization of machines, number of trainees
trained, access to services by MSMEs, number of technology
strategies / roadmaps developed by TPs and endorsed by
industry associations and value of TCs' businesses generated
with support of CNMs.
This program will create an ecosystem to help MSMEs become

more competitive by acquiring improved technology and
employing better skilled workers. This will be done directly
through the services provided to them by the TCs, as well as indirectly through the linkages with
larger firms (e.g. as part of the supplier network of an OEM), which will provide access to the services
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of the TCs under the condition that it benefits their suppliers. The TCs will contribute by providing
inputs to MSMEs on manufacturing technology & business advisory and by improving the skills of
workers/ skill seekers for better employment opportunities. The program will therefore benefit the
Indian MSMEs, students and workers and help establish systems of TCs in the country wherein each
centre will gain from the specialisation and experience of the others and improve the competiveness
of MSMEs.
1.1.5 Key TCSP stakeholders
TCSP has multiple stakeholders who will need to work together to achieve the objective of enhancing
the competitiveness of MSMEs by improving their access to technology and business advisory
services as well as skilled workers through systems of financially sustainable TCs. The key players
who will participate in the program include:
► MSME Units - Beneficiaries
MSME units will be the prime beneficiaries of the program and the overall objective of the program
centres around providing them with access to modern technology, access to business advisory
services and access to skilled workforce.
► Skill seekers
Workers, job and skill seekers will also gain from this program with access to short term and long
term training/skill development courses that will help job seekers to improve their career prospects
and finding livelihood.
► Office of Development Commissioner, Ministry of MSME (DC-MoMSME)
The program would be designed and implemented under the aegis of the O/o Development
Commissioner MSME, Government of India. O/O DCMSME has the mandate to support MSMEs and
TCSP will serve this towards this purpose.
► Technology Centres
The TCs will serve MSMEs with integrated suite of services on a fee basis, ranging from providing
them access to technology, access to skills and access to business advisory services. The program
will focus to upgrade selected existing TCs and development of 15 new TCs that support or will
support industry clusters across manufacturing value chains, including fragrance and flavour,
leather, glass, automotive, electronics and tooling industries.
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► Collaborations with Industry associations, academia, applied research institutes and others
Strategic collaborations between TCs and various other organizations will be critical to foster
research and development, business incubation and strengthen the TCs with regard to manufacturing
services, business advisory and training capabilities. These include:
· Regional / sectorial industry associations representing MSMEs

· Regional / national level engineering/ academic / vocational training institutions
· Applied research institutes
· Local regional colleges
· Autonomous institutes such as CSIR-CIMAP Lucknow, etc.
· Academia
Leading practices from around the world for similar program suggest and underscore the importance
of establishing such linkages. In the Indian context, there are many research oriented projects and
concepts that can provide competitive advantage to Indian industry once the early state research
emanating from applied research institutes and academia can be validated and implemented at the
TC through such collaborations. The TCs will provide a unique environment of bringing the country’s
leading academics, engineering and industry professionals together to develop and demonstrate new
technologies on an industrial scale. This will allow the clients of TCs to develop new manufacturing
processes in a safe, neutral setting, reducing the associated financial risks.
► Program Management Unit (PMU)
Role of PMU is to assist the O/o DC MSME in designing and implementing this program. This includes
developing framework for identifying sites/sectors for the new TCs, developing detailed project
report, support in procurement of services and EPC contracts; developing and implementing
environment and social safeguards, monitoring and evaluation, manage the roll out of the national
portal, deployment of subject matter expertise and overall program management for TCSP over 6
years. EY LLP has been selected as the PMU for the TCSP by the O/o DC MSME via competitive bidding
as per World Bank guidelines.
► Manufacturing Technology Partner (MTP)
Role of MTP is to help enhance the supply side of the TC by augmenting the technologies at the TCs,
assist in their capacity building with respect to the identified technologies and clusters and provide
greater support to the services being offered to the MSMEs by the TCs. These services include being
exposed to the potential impact of new and relevant technologies, learning how to use new
technologies/equipment, providing access to cutting-edge equipment, developing and testing new
products, consultancy, training and deploying efficient techniques and practices that improve the
competitiveness of the MSMEs being served.
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► Cluster Network Manager (CNM)
CNMs for each System (or sub System) of TCs will specialize on specific geographic cluster(s)/
industry(s). The CNM will build capacity of the TC to enhance economic development cooperation
amongst key stakeholders to improve the competitiveness of the cluster. This will include
strengthening market linkages of the TCs with the MSMEs in the cluster it serves, trade and industry
associations, academia, educational institutions, applied research institutions, service providers,
other government support institutions, workers and skill seekers.
The CNM would seek to increase competitiveness of supply chains of large firms by enhancing quality,
reliability and productivity of MSME suppliers by offering services of the TC, thus also helping in
meeting revenue targets of the TC. The CNM will enhance the competitiveness of the cluster business
environment by establishing a network of service providers which will address the needs of the
MSMEs not served by the TC e.g. access to a network of financial services. The CNM will also facilitate
closer cooperation between the TC and MSMEs with key innovation stakeholders such as applied
research institutes, autonomous institutions such as IISc, CSIR, academia, skill seekers, and students
etc. to enhance product and process innovation. TC’s capacity will be further enhanced through
closer cooperation amongst skills development and labour market stakeholders to increase the
number of workers/ trainees from TCs finding long term employment to improve their livelihood.
► National Portal Service Provider (NPSP)
Role of NPSP is to design, develop, set-up, operate and maintain the IT platform for MSMEs. The IT
platform will act as a common platform for services that will be required by an MSME from the start
of their business, to successful operations and closure e.g. access to regulatory services for
entrepreneurs, assistance for financing, access to list of suppliers etc. The platform intends to extend
the reach of the program to its remote beneficiaries well beyond the TCs’ physical location through
access to e-learning solutions, B2B service and product market place, e-recruitment, assistance for
financial services and e-governance services (forum to address grievances, automation of customer
facing operations of the O/o DC MSME) on paid basis.
► Construction Management Consultant
The Construction Management Consultant (CMC) shall be responsible for design, supervision of work
and final closure of construction works for the TC. CMC will prepare concept plans and subproject
appraisal reports, carry out contract planning and detailed engineering designs, prepare schedules
of quantities and specifications. It will support the PMU in preparation of procurement packages, bid
documents, invitation, receipt and evaluation of bids etc. CMC will supervise the construction,
manage the contract, monitor construction activities and will certify contractor’s progress claims,
carry out quality control, testing, and prepare progress and monitoring reports, and certify bills.
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1.1.6 RFD of TCSP
TCSP’s objective is to enhance the competitiveness of MSMEs by improving their access to

technology, business advisory services as well as skilled workers through systems of financially
sustainable TCs. For monitoring the program outcomes, RFD has been defined; which contains the
results indicators at the PDO level and intermediate outcome level together with the baselines and
targets over the life of the program. Intermediate results indicators are designed to monitor critical
progress toward achievement of the PDO with primary emphasis on market-tested outputs of the TCs
and other stakeholders of the TCSP (viz. TPs, CNMs and ITP service provider).
Active participation of General Manager of TCs will be essential for steering the operationalization of
TCSP in line with the envisioned mandate. The key success parameters of the General Manager
include:
► Revenue earned by respective TC from,

· Production
· Training
· Consultancy and others
· Business given for fragrance and flavours / leather / glass / tooling / other focus areas
· Production/training/consultancy with the help of CNM (territory/sectors to be identified
Jointly by CNM and TCs in advance)
► Recovery ratio--Revenue/ recurring expenditure (cash) in percentage
► Profit before depreciation
► Profit after depreciation
► No. of trainees trained in Long term & Short term training programme
► No. of courses identified which are suitable for women employment & courses designed and
started (CNM to assist the identification of courses and TP to design)
► No. of units assisted , out of which how many are MSMEs
► Present technical papers showing successes delivered and how it has aided industry
► Technical incubation centre to start and the long term trainees to be encouraged to register
for starting enterprises
The table below depicts the snapshot of result indicators which form a part of the RFD.
Page 27 of 238
Table 1: Result indicators of the RFD
Number of enterprises paid for services rendered

including placement services
Program development objective Number of long term trainees employed by industry,

indicators including MSMEs, six months after graduating from the
TCs
TCs' gross profit before depreciation (not including

land)
Intermediary Results
TCs revenue from access to technology activities

(production support and consultancy)
Access to
Capacity utilization of machines in TCs
Technology
No. of technology strategies/roadmaps developed by

TPs and endorsed by industry associations and IC
Number of trainees trained (direct program beneficiary)

Component 1- Access to
Technical Skilled
assistance to Number of skills development contents (e.g. curricula,
workforce standards, certifications) developed and adopted by
the existing
and new TCs industry associations, and/or certifying agencies
Number of needs assessment and business plans

developed by CNMs and endorsed by Industry Assocs.
Access to
Business Value of TCs' businesses generated with support of
Advisory Cluster Network Managers
Number of users of IT Platform
Component 2-Investments to
upgrade existing and develop Number of new TCs built
new TCs
Component 3-Technical Establishment of PMU for program implementation and

assistance to MoMSME capacity building of MoMSME
The program aims to have direct and indirect industrial and economic outcomes to the country, such
as enhanced manufacturing competitiveness, improvement in the overall employment rate and
increased GDP growth.
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1.2 Overview of existing MSME TCs
Out of the currently operational 18 Technology Centres (TCs) & Tool Rooms (TRs), 10 are for the
tooling industry and 8 are for other industries such as ESDM (Electronics System Design and
Manufacturing), glass, footwear, sports goods, fragrance and flavour. Half of these eighteen TCs are
located in low income states (Uttar Pradesh, Madhya Pradesh, Odisha, Jharkhand and Assam). The
TCs are self-sufficient institutions that provide design support, training, manufacturing, testing &
calibration and consulting services to MSMEs and other enterprises. They have created a niche in the
market in various fields such as hand tools, plastics, automotive, testing & calibration etc. The list of
the existing TCs & TRs along with their specializations is given below:
Table 2: Existing TCs & TRs with focus sectors
SN Name Focus Sector

Central Tool Room & Training Centre (CTTC), Bhubaneswar General engineering
1
(Odisha) (Precision components)
General engineering (Auto
2 Indo Danish Tool Room (IDTR), Jamshedpur (Jharkhand)
components)
Central Tool Room & Training Centre (CTTC), Kolkata (West
3 General engineering
Bengal)
General engineering
4 Tool Room & Training Centre (TRTC), Guwahati (Assam)
(Training in tool making)
5 Indo German Tool Room (IGTR), Aurangabad (Maharashtra)
components)
6 Indo German Tool Room (IGTR), Indore (Madhya Pradesh)
& Pharma)
7 Indo German Tool Room (IGTR), Ahmedabad (Gujarat)
& Plastic tools)
8 Central Tool Room (CTR), Ludhiana (Punjab) General engineering
General engineering (Hand

9 Central Institute of Hand Tools (CIHT), Jalandhar (Punjab)
tools)
Central Institute of Tool Design (CITD), Hyderabad, (Andhra General engineering &
10
Pradesh) ESDM
Institute for Design of Electrical Measuring Instruments
11 ESDM and tool making
(IDEMI), Mumbai, (Maharashtra)
Electronics Service & Training Centre (ESTC), Ramnagar
12 ESDM
(Uttarakhand)
Process and Product Development Centre (PPDC), Agra (Uttar
13 Foundry and forging
Pradesh)
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SN Name Focus Sector

Process cum Product Development Centre (PPDC), Meerut
14 Sports goods
(Uttar Pradesh)
Central Footwear Training Institute (CFTI), Agra (Uttar
15 Leather & footwear
Pradesh)
Central Footwear Training Institute (CFTI), Chennai (Tamil
16 Leather & footwear
Nadu)
Fragrance and Flavour Development Centre (FFDC), Kannauj
17 Fragrance & flavours
(Uttar Pradesh)
Centre for Development of Glass Industries (CDGI), Firozabad
18 Glassware
(Uttar Pradesh)
Figure 2: Location of existing and planned TRs & TCs
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Several of these were set up through support from German and Danish Government under bilateral
agreements as well as with the UNIDO. These TCs are largely self-sustaining entities that provide
technical and vocational training programs to more than 1,00,000 trainees annually. Some of these
include training programs certified by the AICTE and NCVT. They also provide design and
manufacturing support to entrepreneurs alongside technical consultancies.
The existing TC’s, were set up between 1967 and 1999, with primary focus on improving access to
technologies and providing technical advisory support for entrepreneurs in the given industry cluster
they serve. These TCs also serve workers and youth by offering opportunities for hands-on technical
training and skill development in varied specialisations with a view to improve employability and
livelihood opportunities.
The key services offered by the TCs include design and manufacturing, skill development, and
consultancy. Services offered by FFDC Kannauj, which also focus on the fragrance and flavours
sector include:
► Agro Technology Services

· Consultancy services / technical know-how for cultivation of aromatic and medicinal
plants
· Supply of seeds and planting material
· Preparation of feasibility reports
· Visit to farmers’ fields for on-the-spot consultancy / guidance
· Training to farmers
· Distillation of oil by Field Distillation Unit (FDU) on job work basis
· Production and sale of essential oils
· Consultancy for establishment of aromatic / herbal gardens
► Processing and Value Addition

· Research and development for scaling up the developed processes
· Processing of essential oil through a semi-commercial scale pilot plant
· Development of aroma chemical
· Upgradation of technological status of essential oil and perfumery industry
· Fractionation / Re-fractionation / Extraction / Distillation processing for aroma oils
· Solvent extraction
· Hydrogenation for making aroma chemicals
· Rectification of essential oil
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► Fragrance and Flavour Creation Services

· Creation of natural fragrances and flavours for various products
· Commercialization of fragrances and flavours
· Training-cum-demonstration programme on aroma based products manufacturing
· Trial products development like hair oil, cream, face pack, face wash, incense stick, etc.
· Consultancy services in fragrance creation, flavour creation, and in application areas
· Consultancy on application of fragrance and flavour in end products including
aromatherapy blends
· Consultancy on development of products from oils
► Quality Assessment
· Quality testing and analysis of essential oil, aroma chemicals , fragrances and flavours
· Setting up of a quality assessment laboratory for essential oils and aroma chemicals
including designing of the lab, identification of chemicals, glassware, instruments and
standards required for the lab
· Consultancy for the specific criteria like development of specific test for particular
problems
· Consultancy services to decide the priority of items on different reports
· Consultancy services for the stock verification and assessment of their quality
· Consultancy services for testing of quality assessment lab and analysis of essential oils
and aromatic chemicals
► Training
· Long term and short term training courses in theoretical and commercial processes
· Training on cultivation techniques, processing, value addition, marketing, packaging, and
application of fragrances and flavours, etc.
· Outreach training programme in different parts of country & abroad
► Consultancy
· Consultancy services for cultivation of aromatic and medicinal crops
· Preparation of feasibility reports
· Consultancy in fragrance creation, flavour creation and application areas
· Setting up of quality assessment lab and quality tests
· Field surveys and feasibility studies
· Consultancy on value addition in oils
· Consultancy on development of products from oils
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Over the last few years, financial performance of the TCs has markedly improved. Most of them have
experienced strong revenue growth (mostly due to training activities) and have achieved financial
sustainability (before depreciation and land costs and few TCs even after depreciation). Based on the
recent reports and financial analysis, following are some of the key observations:
► High profitability in recent years: There has been an improvement in recovery ratio of these
TCs, thus allowing them to progress towards their self-sustainability mandate. Majority of
them have become profitable in the last three years.
► Skew towards training: Training and skill developed services have been a key revenue
sources for the TCs. The scope of manufacturing needs to be up-scaled to achieve a balance
in operations and revenues from each TC. Ideally, revenues should be balanced between the
two main sources of income for the TCs. Only IGTR Aurangabad is found to be closely
balanced. CITD Hyderabad and CTTC Kolkata, although profitable, need to perhaps enhance
their production activities.
► Training capacity is well utilized: As reflected in the sources of revenue generation, the scale
of training activities has been growing. All TCs initially reviewed, demonstrated an increase
in training numbers from 2011-12 to 2012-13. The highest increase was observed at IGTR
Ahmedabad. Although this is a positive trend, the staffs at these TCs needs to focus on
production and maintain a balance between these two activities, while also up scaling other
activities like consultancy and product testing. The centres should also seek avenues for
taking advantage of government sponsored schemes and subsequently train more
technicians in welding, machining and in automation.
There is a need to replicate the TCs at more places along with technological up-gradation, improved
training facilities and innovation in the business models etc. This will increase their capacities to train
and strengthen the workforce supply. By improving the competitiveness of these facilities, the MSME
TCs can be better utilized and expected to produce a bigger footprint in the Indian manufacturing
sector.
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· Establishment of modular course structure for advanced training of industry professionals.
All of the above recommendations are valuable not only for the improvement of the existing TCs but
also it serves as an important input for conceptualizing and planning for the new TCs.
DPR Objective and

Approach
Page 34 of 238
2. DPR objective and approach

2.1 Objective
Technology Centre in Imphal has been proposed with the underlying fact and review of the
potential for Aromatic & Medicnal plants sector in India. Imphal and its surrounding areas have a
conducive climate for the growth of medicinal and aromatic plants, which serve as raw materials
for the development of essential oils and medicinal plant extracts. The TC in Imphal will provide
training covering all aspects from cultivation to essential oil extraction, processing and marketing.
The TC will focus on improving access to technology, providing skill up-gradation and offering
advocacy support to the MSMEs with high growth potential. The long term vision is to ensure
competitiveness of MSMEs in the eco-system by strengthening their linkages to the mainstream
manufacturing sector in the region.
The objective of this DPR is to evaluate feasibility of proposed MoMSME TC at Imphal. This includes
assessment of the market need in the region as well as across India, technology and skillset
requirement, amount of investment required, construction needed, its layout and subsequent
requirements for implementation of the green field TC at Imphal. This DPR has been prepared in
consultation with relevant stakeholders including O/o DC-MSME, experts from FFDC Kannauj,
sector experts in Manipur, World Bank, cultivators, industry players, students from Manipur who
trained at FFDC Kannauj, Manipur Department of Industries and Commerce, etc.. This DPR would
facilitate the implementation plan of proposed TC at Imphal. Their suggestions and views were also
taken into consideration during the preparation of this DPR.
2.2 Approach
To start with, a comprehensive secondary research was carried out to understand the requirements
of the fragrance and flavours sector and in particular of the Imphal catchment area. To validate the
facts, the team performed a detailed primary research which included meetings with various key
stakeholders including O/o DC-MSME, units in the sector and others as explained below.
Discussions with various stakeholders were carried out to develop better understanding of the
requirements and expectations from the proposed TC. Cultivators, industrialists and sector experts
involved in Make in Manipur from the region were met to discuss and understand the various insights
with respect to technological requirements. Interactions were also held with master trainers from
Manipur who trained at FFDC Kannauj in order to understand the training requirements and courses
which could be introduced. The objective of this primary research was to understand their
requirements, issues, challenges, and future requirements with respect to skill development and to
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develop a deeper understanding of the requirements for the Aromatic & Medicnal plants value chain
industry that can be served by the TCSP in future.
Based on the outcomes and the results of the discussions, market opportunity assessment was
undertaken to understand the fragrance and flavour demand in medicinal and aromatic plants across
segments across the various stages of the value chain.
Way forward: Post completion of the DPR for the proposed TC at Imphal under TCSP, the on-boarding
of 3 main partners would be very much required to achieve the envisaged outcome in the defined
time frame.
► Construction Management Consultant - For the development of the facility

► Manufacturing Technology Partner – Procurement of machines and adoption of new
technologies
► Cluster Network Manager – Marketing the centre an development of cluster with the right mix
of products and services
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Location Selection
for New TCs
Page 37 of 238
3. Framework for selection of industry/ clusters/ systems/

location for new TCs
3.1 Location selection framework
With the objective of establishing 15 new TC’s to support industry clusters, there was a need to
prioritize and identify high potential growth industries based upon certain selected parameters.
Hence, one of the most challenging and critical aspect of the TCSP was selection of the
Industry/Clusters/Systems/Locations. This required careful consideration of parameters and
consultation with the stakeholders. Preliminary meetings with the O/o DC-MSME were held to discuss
the concept and approach. Subsequently three distinct approaches were finalised to identify the
locations:
a) Manufacturing Competitiveness approach: Key idea for this approach was to identify location
for TC at a place where it can create the most impact on improving the manufacturing
competitiveness. The steps involved were:
► Listing major manufacturing industries creating value across country

► Identifying the clusters which can be catalyst to the manufacturing competitiveness for
respective industry
One key limitation of this approach is that it will select the clusters which are already established and
are among the most competitive across the country, will get shortlisted. A TC at such location will
further improve the competitiveness of this location.
b) Inclusive Growth approach: Approach is based on the assumption that that state which has
higher Net State Domestic Product has better growth and hence the states with lower per capita
state domestic product should be supported. A TC in such states would become catalyst to
improve the manufacturing growth in the state. Following steps were followed:
► Identification of bottom 15 Low Income states on the basis of per capita Net State Domestic
Product10
► Identification of major manufacturing Industries in the State
► Identification of the major clusters for the identified major industries in the state
One of the key drawback of this approach is that clusters identified will not be the most competitive
for the industry in the country. It is possible that by investing in a TC at such a location might improve
the competitiveness of that cluster but may not make this TC a world class centre.
10
2011-12 Current prices
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c) Alignment of Major Economic Projects: As a TC will create value for many years11 and there are
some mega projects in progress which will get completed in 10-15 years. This approach aims to
incorporate the possible future growth areas on the basis of these mega projects. Considering
that such economic growth is based on future development these areas may not get covered in
above two approaches. The steps included are:
► Identification of major Economic projects & timelines (which have been ratified by the
Government)
► Listing the States & Industries getting impacted
► Identifying the emerging clusters for the top industries
Above three approaches resulted in the first list of many locations. It was important to create a
common framework to choose the most appropriate location. In this context “systems approach” was
applied. Systems approach takes in to account the presence of entire ecosystem for a TC in the
catchment area12 and Location Attractiveness Index was created.
A Technology Centre will perform better in achieving its objectives if it is established at a

location with better LA Index.
Construct of LA Index:
LA Index Score= Catchment Score * Presence of TC Score
Catchment Score = ƒx (MSME Unit Score * ITI/PT Score * Presence of Major Firms Score* Presence
of Leading Technical Institute Score)
Presence of TC Score= Presence of state/private technology center in the catchment area
Following data prints were captured and analysed:
► Number of MSMEs, Number of ITIs /Polytechnics, Number of Major Firms, Leading

Technology Institutes for R&D
► Existence of TCs in the Catchment area (inclusive of DC-MSME, State Government , and
Private Tool Rooms)
MSME Units: This reflects the concentration of MSME and it is envisaged that larger the number of
units more opportunity for TC to impact the competitiveness.
11
Existing Technology Centers are more than 25 year old.
12
Catchment Area = District of the location and all neighbouring districts (transcending state boundaries) it is
assumed that maximum value creation will be in the immediate surroundings of the Technology Center.
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Number of ITIs/Polytechnics: This reflects the availability of population seeking skill development
courses. It has also been observed that students from ITI and polytechnic form a large group of
students seeking vocational training at TCs due to lack of such facilities at their respective institutes.
Number of Major Firms: It has been observed that often larger firms take the initiatives to go for
technology upgrades and performance improvements. This leads to cascading effect and firm’s
suppliers, competitors follow up these initiatives in order to stay competitive. If a TC has larger
number of such major firms in the vicinity it will have more opportunity to do technology
collaborations and thus impact the entire ecosystem.
Leading Technology Institutes: Each TC can play a vital role to establish an Industry- Academia
partnership. It has been found that while there are researched ideas available at the academia but
they have difficulty in commercializing same. On the other hand the industries are looking for the
fresh ideas to improve upon their competitiveness in the market. Unfortunately this linkage does not
happen as industry has need of ideas where the proof of concept is ready and unfortunately academia
does not goes beyond research. TC can play a role of bridging this gap and create the platform to link
industry and academia.
State/Private TC: TC can play a vital role in mentoring and improving the performance of the state
government or private sector TCs (tool rooms). If there are such opportunities in the vicinity of the
MoMSME TC it can further increase the reach of TC to improve the competitiveness of MSMEs.
The weightages assigned to each parameter were as below:
In order to further refine the list of locations arrived using the above approach, following additional
criteria for shortlisting the industries were incorporated:
Page 40 of 238
► Prior experience: These are the sectors where O/o DC-MSME has experience of operating
TCs, such as General Engineering, Automotive, Electronics/ESDM, Leather & Footwear,
Glassware, Sports Goods, and Fragrance & Flavours
► Concentration of MSME’s: These are sectors where O/o DC-MSME has limited prior
experience of operating TCs, however there exist a large number of MSMEs in these
industries. Such as Food processing, Textiles (including Handlooms & Handicrafts),
Pharmaceuticals, Wood/Paper/Pulp, and Rubber & Plastics.
► Emerging Sectors: These are upcoming sectors that may be at the forming stage, but will
become major sectors in the near future, such as Bio-technology, Nano -technology, etc.
The sector in which DC-MSME has prior experience have been taken on priority. These sectors are:
auto components, ESDM, general engineering, fragrance & flavour, leather & footwear, glass. Later
the scope can be expanded to include other sectors pertaining to ministries other than MoMSME, if
needed. Such sectors include food processing, pharmaceutical, packaging etc. where presence of
MSMEs is considerable.
The list of locations arrived through the above was further refined and finalised with respect to the
following additional considerations;
During these discussions additional considerations emerged:
► State Classification: The states were classified into two categories as unserved states and
served states. All states of the country were distributed between Un-served states where O/o
DC-MSME did not have an operating TC and served states where an operating MoMSME TC
existed.
► At first unserved states were considered for the new TC in order to spread the coverage of
MoMSME TC which would help in supporting more MSMEs across the country. With the
approval of locations for the unserved states, served states would also be considered for the
technologies for which existing TC cannot support.
► On the basis of MSMEs concentration in prior experience sectors, leading clusters were
identified in each unserved state. This resulted in identifying the industry wise potential
locations in each of these states.
► Some of the unserved states took proactive approach and have allocated or identified land
for the purpose of TC. These locations were mapped to the locations identified in the step
above. Accordingly technology focus was selected for these locations.
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3.2 Selection of Imphal location for setting up of new TC
As per the location selection framework and subsequent approval in the 4 th PSC meeting held on 15th
May 14, Imphal was selected as the location for setting up of new Fragrance and Flavours TC
focussing on cultivation of medicinal and aromatic plants and extraction of essential oils. Imphal
region has been found suitable from multiple perspectives:
► The North East region of India harbours 50% of the India’s flora, and 60% of medicinal plants
found in the country13.
► FMCG companies, which are major consumers of essential oils are growing in India due to
various economic factors. This provides impetus for the growth and development of Medicinal
and Aromatic Plants (MAPs) and essential oils
§ Major FMCGs include – Himalaya, Dabur, Godrej, ITC, Amul, Pidilite Industries, Hindustan
Unilever, etc.
► In Manipur, 49.5% and 50.1% of the total rural and urban population respectively are youths
(13 – 35 years). Further, only 12.8% of the rural population and 23.6% of the urban population
have completed higher secondary schooling14. There is a high rate of unemployment among
educated people in Manipur, with 7,01,987 educated youth seeking employment in the State 15.
This provides scope for technical training of the youth in order to increase their employability
and foster an ecosystem for entrepreneurship development.
► There is a lack of skill development infrastructure in the North-East region to meet the
requirement of the region. There are a total of 80 ITIs in the North-East, of which 72 are
government run. The skill development infrastructure is not sufficient to meet the requirement
of the people in the Region16.
► Mega industrial projects providing further scope for the industry
§ Perfume Park to be set up in Kannauj
§ Food Park to be set up in Imphal
§ The North Eastern Institute of Ayurveda & Homoeopathy (NEIAH) being established in
Shillong, Meghalaya
► Connectivity to other locations
13
http://manipurforest.gov.in/Downloads/Souvenir%20full.pdf
Medicinal and aromatic plants – an underutilized resource in Northeast India for health and livelihood security, by K.
Haridasan (Advisor – FRLHT)
14
North-East Youth Readership Survey report -
15
http://www.thehindu.com/todays-paper/tp-national/tp-otherstates/over-7-lakh-educated-unemployed-in-
manipur/article6021743.ece
16
http://articles.economictimes.indiatimes.com/2015-04-22/news/61417502_1_development-infrastructure-national-skill-
development-corporation-itis
Page 42 of 238
§ Imphal has an international airport connecting it to Delhi, Guwahati, Aizawl, Bangalore,

Kolkata, Silchar Mandalay (Myanmar), and Agartala. Thus it is well connected to other
North Eastern states, as well as major cities in India by air.
§ Rail connectivity up to Guwahati amd Dimapur, and a railway line from Jiribam (on the
Manipur-Assam border) is under construction as a national priority project. This railway
line is expected to connect Imphal with the rest of India by the end of 2016.
§ Road connectivity via national highways from Guwahati, Dimapur and Silchar
Page 43 of 238
Fragrance and
Flavour Industry
Overview
Page 44 of 238
4. Fragrance and Flavour Industry Overview

4.1 Industry Overview
The Fragrance & Flavour (F&F) industry overall includes fragrances, flavours, essential oils, aroma
chemicals and specialty aroma ingredients. The Food, Home and Personal Care Industries are the
largest consumers of fragrances and flavours. The increasing demand for cosmetics, household, and
personal care products drives the fragrance industry, while the beverages and confectionery industry
segment drive the world flavours market.
The global F&F market has grown exponentially in the last few years and growth is expected to
continue. The market is being driven by changing consumer preferences, significant technological
advances, and increasing demand from emerging economies for natural fragrances and flavours due
to health concerns related to synthetic chemicals. The global flavour and fragrance market is facing
various challenges such as the high cost of migration from synthetic to natural sources, lack of
transparency in F&F patent protection laws, and concerns related to synthetic products because
some chemicals have proven to be injurious to health. Potential opportunities exist in the Asian and
Latin American regions due to the low cost of raw materials for natural ingredients and the availability
of labour. Flavours and fragrances also are finding applications in various unconventional products
such as beer shampoo, lime-flavored tea and deodorants with chocolate fragrance.
Fragrances and flavours typically make up 1 – 5% of the cost of a finished product according to
International Flavours and Fragrances (IFF), a major player in the global market. Yet, subtleties in
flavours are often the key reason why consumers prefer one brand over another.
The fragrance and flavour market has the following application based components:
Page 45 of 238
Table 3: Fragrance & Flavours Industry Components
F&F Industry Products

FLAVOURS Food Industry Confectionary (Sweets, Chocolates, Candies, Jam,
Indian Sweets, etc), Dairy Products (Milk, Yoghurt,
Ice creams, Cheese, etc.), Bakery and Processed
Foods, (Cakes, Flavoured breads, Biscuits, Meat,
Soups, etc.), Savoury (Chips, Namkeen, Snacks,
etc.)
Feed Industry Pet Food, Farm Animal Feed
Tobacco Cigarettes, Gutka (Chewing), Gudaku (Oral
application), Pan Masala (Chewing)
Mouth Care Toothpaste, Mouth wash, Mouth Fresheners, Lip gel
Pharmaceutical Industry Medicines, Health Food Supplements, etc
Tobacco Gutka (chewing), Gudaku (oral application), Pan
Masala (chewing)
Ayurveda Ayurvedic medicinal products
FRAGRANCES Personal Care Toilet Soaps, Shampoos, Hand Wash, Shower Gel,
Cosmetics, Hair Oils, Hair Styling Products, Body
Talcum Powder, Shaving Creams / Foams,
Deodorants
Fabric Care Laundry Soaps, Synthetic Detergents (bars, powder,
liquids, etc), Fabric Conditioner
Household Care Household Cleaners (Glass cleaner, Surface cleaner,
Dish wash, Toilet cleaner, etc), Air Fresheners,
Candles, Incense Sticks, Insect Repellents
Ayurvedic & Hair oil, Massage oil, Cream, Shamppo, lotions
Pharmaceutical products
Perfume After shave lotion, splash cologne, Eau de cologne,
Eau de Toilette, Eau de Perfume
Aroma therapy Products Hair care, skin care & wellness related products
Miscellaneous Use Paints, Stationery, Plastic and Polymers, Motor Oils,
etc.
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The following table depicts the key exporting regions of various raw materials and essential oils used
in the F&F Industry:
Crop / Essential Oil Exporting Countries

Cinnamon Bark Sri Lanka, small quantities from Madagascar and Seychelles
Cassia Oil China
Mentha Oil India, China, Brazil
Sassafras Oil China, Vietnam, small quantities from Brazil
Rosewood Oil Peru, Colombia
Eucalyptus Oil China, Portugal, Spain, Australia, Southern Africa (mainly
Swaziland), South America (Chile, Brazil, and small amounts
from Bolivia, Uruguay, Paraguay)
Sandalwood Oil Indonesia, India
Litsea Cubeba Oil China, Indonesia
Turpentine from Pine Resin China, Portugal, small quantities from South Africa, Zimbabwe,
Kenya, Thailand, Greece, Turkey
Olibanum, Myrrh, and Opopanax Somalia, Ethiopia, Kenya
Resins and Oils
Cedarwood Oils China, East Africa, Morocco, India
Figure 3: Global Supplier Hubs
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4.2 Global Value Chain
The global value chain can be viewed broadly as a 4 step process, comprising the following17:
The value chain includes Farming, Essential Oil Production, Fragrance / Flavour Production, and
Consumption.
(a) Farming: This involves growing various crops, based on the regional geography, climate, and
other factors. Key crops include menthe mint, ashwagandha, citronella, lemon grass, and
patchouli.
(b) Essential Oil Production: This involves distillation carried out at the farmer level. The distilled
crude oil is then collected by agents, and further processing is conducted. Some global
players like Givaudan and IFF are also producing essential oils.
(c) Fragrance / Flavour Production: This is done by a few global players including Givaudan, IFF,
Symrise, etc. Major Indian players include SH Kelkar, Ultra International, etc. Fragrance and
flavour production involves chemical synthesis to create aroma chemicals, compounding and
blending of flavours, and synthetic modification.
(d) Consumption: The fragrances and flavours are then consumed in various products, including
mouth fresheners, cosmetics, fragrances, shampoos, detergents, etc.
17
Source: BCC Research; Global Markets for Flavour and Fragrances
Page 48 of 238
4.3 Research Institutions and Associations Associated with the F&F Industry
The leading companies in the F&F Industry play a vital role in research and development. Each of
these companies invests large amounts in R&D. In addition to this, other leading R&D centres include:
a) Research Institute for Fragrance Materials (RIFM): RIFM was formed in 1966 to analyze,
evaluate and distribute scientific data, cooperate with official agencies and encourage safety
standards for the use of fragrance ingredients.
b) International Fragrance Research Association (IFRA): IFRA was founded in 1973 in Geneva
to represent the collective interests of the fragrance industry. Its main purpose is to promote
the safe enjoyment of fragrances worldwide. Together with the industry’s scientific centre,
RIFM, IFRA endeavours make sure that usage standards for fragrance materials are put into
practice according to the available scientific recommendation, and that member companies
comply with those standards. This voluntary approach enables the IFRA standards to be
adopted very rapidly by fragrance houses worldwide and by the industry as a whole.
c) Flavour & Extract Manufacturers Association (FEMA): FEMA is comprised of flavour
manufacturers, flavour users, flavour ingredient suppliers, and others with an interest in the
U.S. flavour industry. Founded in 1909, it is the national association of the U.S. flavour
industry. FEMA works with legislators and regulators to assure that the needs of members
and consumers are continuously addressed. FEMA is committed to assuring a substantial
supply of safe flavouring substances.
d) Monell Research Institute: Monnell Center is an independent, non-profit scientific institute
dedicated to interdisciplinary basic research on the senses of taste and smell.
Key associations in India for fragrance and flavours are Fragrance and Flavours Association of India
(FAFAI) and Essential Oil Association of India (EOAI). Details of these have been provided in section
5.3.2.
Institutes are also present across India, which focus on development of advanced cultivation
techniques and improved agricultural productivity, research on medicinal and aromatic plants, etc.
These include:
► FFDC (Fragrance and Flavour Development Centre), Kannauj

► CSIR – NBRI (National Botanical Research Institute), Lucknow
► CSIR – CIMAP (Central Institute of Medicinal and Aromatic Plants), Lucknow
► CSIR – IIIM (Indian Institute of Integrative Medicine), Jammu
► CSIR-IHBT (Institute of Himalayan Bioresource Technology), Palampur
► Central Council of Research in Ayurveda and Siddha, New Delhi
► Central Agricultural University, Imphal
The details of these institutes are detailed in section 5.3.6.
4.4 Case Study: Indian Mint Success Story

India is the largest producer and exporter of Menthol & Mint allied products in world followed by
China, Brazil, US and other countries. India exports different types of mint oils to countries like
Argentina, Brazil, France, Germany, Japan, UK, USA. These varieties include the Japanese mint oil
Page 49 of 238
(derived from Mentha Arvensis), peppermint oil (Mentha Piperita), dementholised Japanese mint oil,
spearmint oil (Mentha Spicata), water mint oil (Mentha Aquatic), horsemint oil (Mentha Sylvestries),
Bergamont oil (Mentha Citrate) and others.
Mentha arvensis is cultivated in semi- temperate regions namely foothills of Himalayas of Punjab,
Haryana, Himachal Pradesh, Uttar Pradesh, and Bihar. As per the estimate, area under cultivation
for mentha in the country is about 150,000 hectares majorly in northern and eastern India. Dark
green leaves of “Mentha arvensis” are the feedstock for an essential oil that contains menthol, the
substance that finds application in FMCG, pharmaceutical, cosmetic, and other products.”
India cultivates about eight species of mentha; however, only three species namely Mentha Arvensis
, Mentha Piperita and Mentha Spicata have approval and/or recognition for the purpose of quality
standards and international marketing. The natural oil yields on an average 40-50% menthol and 50-
60% dementholised oil, for use in both confectionery and medicine in place of imported peppermint
oil.
What brought the change?
Cultivation of Mentha Arvensis in India is a dramatic success story. Prior to 1964, India did not
produce Mentha Oil or Menthol. Cultivation of Mentha Arvensis started around 1870 in Japan and
extended to Brazil, China, Formosa and some other countries. Col. R.N. Chopra & Dr. I.N. Chopra of
Regional Research Laboratory, Jammu Tawi first brought Mentha Arvensis in India in 1964 and with
the efforts of the Managing Director of Richardson Hindustan Ltd. (VICKS), the commercial
cultivation started in India.
Richardson Hindustan Limited did a survey and found that Tarai region of Uttar-Pradesh and
Uttrakhand was the most appropriate place for the cultivation of Mentha Arvensis. They purchased
15 Hectares of land to setup an agriculture research center for growing and extracting mentha oil by
steam distillation. The project was very successful resulting in Richardson Hindustan Limited
establishing another distillation unit in Bilaspur (district Nanital) for farmers to grow Mentha Herb.
They supplied the planting materials as well as gave technical knowledge to grow the Mentha herb.
As a result the area of mentha crops substantially increased in the entire Tarai and western districts
mainly Nanital, Rampur, Moradabad, Badaun, Bareilly and even extended to eastern districts viz.
Barabanki, Lucknow & Sitapur districts. In addition to the above regions of Uttar Pradesh and
Uttrakhand, mentha crop is also grown in Punjab, Haryana and some parts of MP and Gujarat.
How did it get commercialized?
After 1993, farmers, small scale industries and CSIR laboratories- RRL Jammu (now known as IIIM
Jammu) and CIMAP Lucknow, launched “Improved Technology for Menthol Mint Essential Oil
Project” with continuous up-gradation in technology for mint oil production by promoting the
Page 50 of 238
cultivation of high menthol yielding varieties of mentha arvensis. Under the arrangement, the
growers had a ready market as Richardson Hindustan was willing to buy-back the menthol extracted
out of mentha crop.
Over time, India became the largest producer of menthol mint oil in the world, overtaking China. With
a production of over 17,000 tons, the country now commands 80%18 per cent share of the annual
global output of menthol mint oil.
So, what is doing the trick for India’s mint oil economy?
The answer lies in the four varieties of mentha arvensis (Himalaya, Kosi, Saksham, and Kushal)
developed by CIMAP. These varieties have improved traits and higher content of menthol.
The farmer can grow mentha in combination with regular crops like maize, potato, wheat and paddy.
Maize Potato Mentha

Paddy Potato Mentha
Basil Potato Mentha
Paddy Mustard Mentha
Paddy Wheat Mentha
Time of Plantation No. of

Time of Plantation Oil Yield Per Acre
(Crop) Harvest
Mentha Arvensis Jan. 2nd week to Feb. Last 2 60 kgs to 90 kgs
Mentha Piperita Dec. Last week to Jan. Last 2 40 kgs to 60 kgs
Mentha Spearmint Dec. Last week to Jan. Last 2 40 kgs to 65 kgs
The mint economy has established itself in the farms and marketplaces of the district. Farmers grow
the Kosi variety of mint that has a crop cycle of 90-95 days. They transplant the “suckers” (the
mentha roots that they source once every two years) in March and harvest the crop by the second
week of June. As harvesting progresses, they start putting the crop into the steam distillation unit
installed in the farm to produce the oil. Depending on a number of factors, including cultivar used,
time of planting and harvesting, and climate, 20-40 tons of herbage will produce 125-200 kg of
essential oil.
It is for this reason that farmers in Terai region have found in menthol mint a crop that is ideal for
plugging the gap between the Rabi crop (wheat or potatoes) and kharif crop (rice). Almost 70 per
cent of the total arable land in the district is in use to cultivate the “bonus” cash crop in addition to
18
Multi Commodity Exchange of India Limited
Page 51 of 238
the traditional food crops. Farmers can either sell the oil to traders/ commission agents who visit
the farms looking for the commodity or take it to the nearby Market (mandi). The buyers test the
quality of oil and pay according to the percentage content of menthol present in it.
FFDC Kannauj: Mint Aggregate Benefit Model
Menthol Mint crop was introduced by CSIR- Demonstrational Impact

CIMAP Lucknow in 1980s and subsequently
extension work was done by CSIR-CIMAP, About 5,00,000 farmers, traders,
Lucknow and FFDC, Kannauj for manufactures of menthol crystal and
popularization of this crops among the exporters are involved directly or indirectly
in this business.
Indian farmers. Now this crop is under
cultivation on 5 lakh acres in Northern India. The farmers are cultivating this crop as a
In 2006, FFDC met with Multi Commodity bonus crops in between the main cereal
Exchange (MCX) and made special crops, and earning Rs. 40,000 to 45,000
standards for the mint oil industry which per acre with in the period of 5 months.
were more stringent than BIS. These
Now India is global leader of mint products
standards were accepted by industry. As a
and export, about 40,000 ton mint oil
result, the industry started forward trading produced annually.
this oil as commodity. Due to adoption of
mint by MCX, farmers are have a steady and The export has also increased by 22-23%
transparent market and better profit due to regular supply of mint oil.
margins. Earlier farmers were getting a
Till today, FFDC has tested 20,116 mint
price which nearly 10 -15% less than that of samples for MCX worth Rs. 537.92 crore
market.
Page 52 of 238
Location Brief
Page 53 of 238
5. Location brief
5.1 Regional overview
Imphal West District came into existence in 1997, when the erstwhile Imphal district was bifurcated
into two districts – Imphal East and Imphal West. The city of Imphal, located in Imphal West District is
the capital of Manipur district of India. Imphal is located at 25.82°N and 93.95°E in extreme eastern
India. It is surrounded by Senapati district on the north, on the east by Thoubal, on the south by
Thoubal and Bishnupur and on the west by Senapati and Bishnupur districts. The district consists of
4 (west) sub-divisions.
Imphal west is largely an agrarian district. The district is endowed with a rich variety of vegetation.
The prevailing climactic conditions are favourable for growing a wide variety of herbs, shrubs, and
also flowering and non-flowering trees. In addition, a variety of medicinal plants are also grown in the
district. Several rivers pass through the district, including Imphal river, Nambul river and their
tributaries.
Imphal is the marketing hub of the state. Various products of Manipuri origin like woven goods,
brassware and bronze ware are collected from different parts of the state and marketed in Imphal.
Agriculture and electronics industries are some of the main parts of Imphal’s economy.
Figure 4: Location of Imphal
Page 54 of 238
Table 4: Imphal West district snapshot
Section Quantity/Value
Area
Total geographical area 558 Sq. km
Administration
Tehsil 10
Inhabited Villages 117
Land use pattern
Total area 51,900 Hectares
Land under agricultural use 28,250 Hectares
Population (census 2011)
Total population 5,14,683
Men 2,53,628
Women 2,61,055
Rural population 1,97,699
Literacy (except 0-6)
age)group)
Total literate 86.08%
Men 92.24%
Women 80.17%
Infant mortality rate 14 per 1,000 live births
Connectivity (Road)
National Highway 109 km
State Highway 183 km
Main District Highway 253 km
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Table 5: Status of power, water, wind and rainfall in the region19
Aspect Status Significance for TC

► Public Health Engineering Department is responsible for water
supply in Manipur ► Ensures availability of water on a daily basis TC will also have
► Annual replenishable ground water resources of 86.5 mcm as on to dig a borewell. This would require permission from Central
Water March 2009 Ground Water Board
availability ► Groundwater is suitable for domestic, irrigation and industrial ► The same would be permitted on the condition of
purposes provisioning of a rain water harvesting system of double the
► Several areas in Manipur, including Imphal city face water capacity of consumption of ground water
shortage
Electricity ► Power is being distributed by Manipur State Power Distribution ► Power back-up to be designed keeping emergency and
availability Company Limited (MSPDCL) essential services/equipment’s in mind
► Typically the wind velocity is about 1.8 km per hour
► Mean daily humidity is highest from July – September, which
varies from 80 – 96% ► Would be helpful to maximise natural ventilation during
Wind flow
► The height above the level of sea is around 786 meters in Imphal designing the layout of TC
region
► Wind is generally light except in the rainy season
► The average annual rainfall measured in the region is about 1320
► For estimation of capacity of rain water harvesting system
Rainfall mm
in the TC campus
► Most precipitation falls in June
Contd. Contd. Contd.
19
http://cgwb.gov.in/District_Profile/Manipur/Imphal%20West.pdf
http://www.adb.org/sites/default/files/project-document/151556/47341-002-eia-01.pdf
Page 56 of 238
Aspect Status Significance for TC

► The minimum temperature in Imphal varies from 4 degrees
► For estimation of capacity of AC to be installed for adequate
Celsius in winter to 15 degrees Celsius in summer
Temperature cooling, designing of building as well as estimate the
► The maximum temperature in Imphal varies from 28 degrees
potential for use of solar based equipment
Celsius in winter to 29 degrees Celsius in summer
Imphal is connected to other parts of the country through:
§ Imphal has an international airport connecting it to Delhi, Guwahati, Aizawl, Bangalore,

Kolkata, Silchar Mandalay (Myanmar), and Agartala. Thus it is well connected to other
North Eastern states, as well as major cities in India by air.
§ Rail connectivity up to Guwahati and Dimapur, and a railway line from Jiribam (on the
Manipur-Assam border) is under construction as a national priority project. This railway
line is expected to connect Imphal with the rest of India by the end of 2016.
§ Road connectivity via national highways from Guwahati, Dimapur and Silchar
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5.2 Demographic profile of the district
► Population growth: The total population of Imphal West district is 5.18 lakhs (census 2011). The
district comprises 18.1 percent of the total population of the state of Maipur, and ranks first
position in population size among the 9 districts. The growth of population in Imphal district was
16.65% during the last decade. Out of total population in 2011, around 49% are men and 51%
are women. The density has increased from 847 people per square kilometre in 2001 to 998 in
2011. The graph depicts the growth of population over the last decade of Imphal west district.
Figure 5: Decadal Growth of population in Imphal West district
6
5.17
Population size (in lakhs)
5 4.44
3 2.55 2.62
2.21 2.22
2
0
Male Female Total
2001 2011
Source: Census of India
► Rural-urban population composition: Imphal west district has an urban population of around
62.33% and a rural population of around 37.67% as per census 2011. In total 322,879 people
lives in urban areas of which males are 158,106 and females are 164,773. The total Imphal
West district population living in rural areas is 195,113 of which males and females are 96,948
and 98,165 respectively
► Sex Ratio: Sex Ratio in urban region of Imphal West district is 1042 as per 2011 census data.
In rural areas of Imphal West district, sex ratio is 1013 females per 1000 males.
► Literacy Rate: The literacy rate of Imphal Eest district is around 86.06%. Among male and
female this rate is 92.24% and 80.17% respectively. At the district level, the number of literates
has increased by 5.14% from year 2001 to 2011. The male and female literates increased by
4.04% and 8.13% respectively during this period.
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► Worker Details: The total number of workers in the district are 2.13 lakh persons. Of this, the
number of Main Workers is 1.66 lakh, Marginal Workers is 0.47 lakh, and Non-Workers are 3.04
lakh. The categories of workers (main and marginal) is detailed below:20
Figure 6: Categories of Workers
Category of Workers (Main Number of Persons Composition

& Marginal) (lakhs)
Cultivators 0.37 17.37%
Agricultural Labourers 0.12 5.63%
Workers in Household 0.19 8.92%
Industry
Other Workers 1.43 67.13%
Total 2.13
Thus, cultivators who will be some of the key customers for training and production facilities of
the proposed TC at Imphal contribute 17.37% of the total working persons in the state.
► Youth Population: In Manipur, 49.5% and 50.1% of the total rural and urban population
respectively are youths (13 – 35 years). The table below depicts the distribution of youth
population in rural and urban areas of North East Indian states21.
Table 6: Age distribution of Rural Population, 10 years and over
State Age distribution (Rural Population) in percent

Children Youth (13 Mature Middle Aged Senior
(10 to 12 to 35 years) citizen (36 (51 to 60 citizen
years) to 50 years) years) (Greater
than 60
years)
Assam 7.5 59.0 21.3 6.9 5.3
Arunachal 8.7 60.1 20.6 5.2 5.5
Pradesh
Sikkim 6.2 59.5 19.8 8.3 6.3
Nagaland 5.1 63.3 22.8 5.9 2.9
Manipur 6.9 49.5 23.5 11.4 8.8
Mizoram 10.0 55.0 21.8 8.6 4.5
Tripura 7.1 61.1 18.0 7.7 6.1
Meghalaya 5.2 69.7 18.6 3.8 2.8
All India 7.5 56.5 22.0 8.0 6.1
20
Census 2011
20
North-East Youth Readership Survey report
Page 59 of 238
Table 7: Age distribution of Urban Population, 10 years and over
State Age distribution (Urban population) in percent

Children Youth (13 Mature Middle Aged Senior
(10 to 12 to 35 years) citizen (36 (51 to 60 citizen
years) to 50 years) years) (Greater
than 60
years)
Assam 5.4 54.6 25.7 8.1 6.2
Arunachal 7.0 65.8 21.9 4.0 1.3
Pradesh
Sikkim 8.5 59.8 20.1 6.3 5.3
Nagaland 6.9 61.4 20.4 7.4 4.0
Manipur 3.8 50.1 25.3 11.1 9.6
Mizoram 7.0 52.1 20.7 10.6 9.7
Tripura 5.1 54.43 23.1 10.1 7.4
Meghalaya 8.6 65.2 20.8 4.8 0.6
All India 6.2 55.7 23.7 7.9 6.4
► Level of Skill Development: In Manipur, 12.8% of the rural population and 23.6% of the urban
population have completed higher secondary schooling 22.
Table 8: Distribution of Rural Population, 10 years and over, by level of education
State Education Level (Rural population) in percent

Professional /
Non-Literate
Middle class
Secondary
Secondary
Graduate
graduate
research
Primary
primary
degree
Higher
higher
Below
Post-
Assam 29.5 12.7 16.0 19.7 10.7 8.0 2.9 0.3 0.2
Arunachal 22.2 10.4 22.0 25.6 8.3 8.0 3.5 0.0 0.0
Pradesh
Sikkim 19.9 16.8 22.0 17.2 12.9 5.9 4.6 0.7 0.0
Nagaland 10.9 12.9 23.2 22.5 16.8 8.5 4.3 0.7 0.2
Manipur 11.8 9.0 13.0 23.0 17.3 12.8 11.1 1.7 0.2
Mizoram 19.3 18.7 22.2 22.9 8.3 4.4 2.8 1.5 0.0
Tripura 34.8 26.5 19.1 11.1 4.7 2.1 1.2 0.3 0.3
Meghalaya 34.0 27.9 13.9 10.8 6.3 4.9 1.7 0.4 0.1
All India 36.4 11.4 16.1 14.8 10.9 6.1 2.8 0.7 0.3
22
North-East Youth Readership Survey report
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Table 9: Distribution of Urban Population, 10 years and over, by level of education
State Education Level (Urban) population) in percent
Professional /
Non-Literate
Middle class
Secondary
Secondary
Graduate
graduate
research
Primary
primary
degree
Higher
higher
Below
Post-
Assam 8.5 7.3 12.8 23.8 18.1 15.1 12.1 1.6 0.7
Arunachal 10.6 5.1 18.4 25.2 11.1 18.5 9.3 1.8 0.0
Pradesh
Sikkim 18.9 12.2 24.2 16.4 14.2 5.4 5.9 2.7 0.1
Nagaland 12.7 9.6 17.3 24.6 14.5 9.4 9.5 2.1 0.2
Manipur 5.3 5.3 8.6 17.4 15.0 23.6 20.2 4.5 0.1
Mizoram 4.3 11.2 17.2 33.9 19.9 7.8 3.8 1.7 0.2
Tripura 10.6 12.8 21.1 22.5 9.3 10.2 10.6 2.5 0.4
Meghalaya 14.0 31.8 16.6 12.8 10.6 8.1 4.1 0.9 1.0
All India 16.3 8.2 15.2 17.1 17.9 11.3 9.6 3.2 1.1
► Unemployed Youth: There is a high rate of unemployment among educated people in Manipur,
with 7,01,987 educated youth seeking employment in the State23. The high rate of
unemployment, particularly among the educated youth, is due to the lack of industrial base,
absence of private enterprises, and limited employment opportunities in the government sector.
23
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5.3 Regional stakeholders
Industry associations, leading manufacturers, training institutes, applied research institutes,

academia, thought leaders and above all MSMEs and cultivators would play an important role in
providing the guidance on key aspects including (but not limited to) designing capabilities,
technological requirements, skillset requirement and cluster development.
Key stakeholders for Imphal TC would include; Government bodies, industry body associations,
manufacturers and suppliers (farmers and cultivators.), financial institutions, applied research
institutes etc. in the catchment area as well as across India. The catchment area of the Imphal TC will
include other districts of Manipur, as well as other North Eastern states. The following figure depicts
the stakeholders of the Imphal TC;
Figure 7: Stakeholders of Imphal TC
5.3.1 Government bodies
► Manipur Industrial Development Corporation Limited (MANIDCO)

MANIDCO (formerly Manipur Small Industries Corporation Limited) was incorporated in 1969.
The corporation is a multi-functional company which undertakes the following:
· State Financial Corporation (SFC): This undertakes term loan lending activities and
provides financial assistance to small scale industries. SFC takes support from SIDBI for
its financing activities.
· State Industrial Development Corporation (SIDC): SIDC has participated in a few
subsidiary / joint sector projects (industrial units) in Manipur
· Raw Materials Trading Business: The corporation has been providing scarce raw
materials to small scale industrial units and also assists marketing their products.
MANIDCO has been planning to start export/import trading business activities in food
products and technology transfer with the counterpart i.e. Myanmar &Vietnam under
the Look East Policy of the Government of India.
· State Industrial Infrastructure Development Corporation (SIIDC): As SIIDC, MANIDCO
has been undertaking construction and design services for various civil construction
works in the state of Manipur.
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► Department of Commerce and Industries, Manipur

The department of Commerce and Industries plays a role in the development of industry,
minerals, and commerce with the main objective of generating employment and bringing about
economic development. The key activities of the Department are in the Village and Small
Enterprise Sector. The activities of the Department can be broadly categorized as follows:
· Village & Small Enterprises
· Industries other than Village & Small Enterprises (including PSUs),
· Trade & Commerce,
· Mineral Development,
· Registration of Partnership Firms under Indian Partnership Act, 1932, and
· Administration of the Factories Act, 1948 and the Indian Boilers Act, 1923 and the rules
made there under.
► Ministry of Development of North Eastern Region (DoNER)

The Department of Development of North Eastern Region in September 2001 by the union
government, and upgraded it to a Ministry in May, 2004 underscoring its complete commitment
to ensure development with equity for the North East region to unleash the potential of its
human and natural resources. The Ministry of DONER, as it is commonly known, is a unique
Ministry in the Union Government as its activities are regional and more importantly advocating
the special needs of the region to the other Ministries/Departments and policy makers.
The Ministry of DONER is responsible for the matters relating to the planning, execution and
monitoring of development schemes and projects in the North Eastern Region. Its vision is to
accelerate the pace of socio-economic development of the Region
► Manipur Small Farmers Agri-Business Consortium (SFAC)

SFAC is an autonomous body of the Government that aims at catalysing multidisciplinary agro-
based industrial growth with special emphasis on bridging the gap between forward and
backward linkages. Its core aims and objectives focus on increased production and productivity,
value addition, provision of efficient linkages between producers and consumers, empowerment
of rural people (especially women and disadvantaged sections), availability of credit, access to
technology and assuring remunerative prices for farmers produce. SFAC has been declared a
Financial Institution which acts as a lending bank in setting up agri-business projects by way of
participating in the equity contribution of promoters’ as Venture Capital Assisrance. SFAC also
has a project development facility to provide assistance to farmers, producer group,
agripreneurs, etc. for the preparation of bankable Detailed Project Reports.
Manipur SFAC in addition to its core objectives has taken up various sensitisation programmes
on organic farming systems, organic inputs production technologies, awareness programmes on
conservation and promotion of medicinal and aromatic plants under the aegis of National
Medicinal Plants Board. SFAC has also been also been involved in the show casing of various
activities and products of Manipur on behalf of producer groups and entrepreneurs at State and
National level exhibitions, and sponsoring NGOs in various exhibitions on agro-based activities
under promotional programmes. Manipur SFAC has carried out workshops and training
programmes on organic farming in the state.
SFAC has also initiated a model on contract farming of ginger and turmeric with financial support
from the State Bank of Imphal for ensuring buy-back of farm produces at a pre-determined price.
These activities have motivated producer groups and catalysed them to set up their own
processing units.
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► National Medicinal Plants Board (NMPB)

The National Medicinal Plants Board (NMPB) was set up in November 2000 by the Government
of India, and has the primary mandate of coordinating all matters relating to medicinal plants
and support policies and programmes for growth of trade, export, conservation and cultivation.
The Board is located in the Department of Ayurveda, Yoga & Naturopathy, Unani, Siddha &
Homeopathy (AYUSH) of the Ministry of Health & Family Welfare.
NMPB undertakes activities such as:

· Development of schemes such as certification scheme for medicinal plant produce,
development of scheme for conservation, development and sustainable management of
medicinal plants,
· Medicinal plants research
· Creation of state-wise list of medicinal plants
· Support of state wise cultivation clusters
· Carrying out workshops on certifications
► Manipur Food Industries Corporation Limited (MFICL)

Manipur Food Industries Corporation Limited is a Government of Manipur undertaking. MFICL is
currently establishing a Food Park in Imphal, in order to provide basic infrastructural facilities
such as land, building, cold storage, power, water supply and marketing facilities for the
identified industrial units to be established by the selected entrepreneurs in the food park. The
company will provide assistance and support services in the field of technical, financial,
marketing, etc. to these units.
► Food Safety and Standards Authority of India (FSSAI)

The Food Safety and Standards Authority of India (FSSAI) is an agency of the Ministry of Health
& Family Welfare, Government of India. The FSSAI is responsible for protecting and promoting
public health through regulation and supervision of food safety. The FSSAI has been established
under the Food Safety and Standards Act, 2006 which is a consolidating statute related to food
safety and regulations in India.
The functions of FSSAI include:

· Framing of Regulations to lay down the Standards and guidelines in relation to articles
of food and specifying appropriate system of enforcing various standards thus notified.
· Laying down mechanisms and guidelines for accreditation of certification bodies
engaged in certification of food safety management system for food businesses.
· Laying down procedure and guidelines for accreditation of laboratories and notification
of the accredited laboratories.
· To provide scientific advice and technical support to Central Government and State
Governments in the matters of framing the policy and rules in areas which have a direct
or indirect bearing of food safety and nutrition.
· Collect and collate data regarding food consumption, incidence and prevalence of
biological risk, contaminants in food, residues of various, contaminants in foods
products, identification of emerging risks and introduction of rapid alert system.
· Creating an information network across the country so that the public, consumers,
Panchayats etc. receive rapid, reliable and objective information about food safety and
issues of concern.
· Provide training programmes for persons who are involved or intend to get involved in
food businesses.
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· Contribute to the development of international technical standards for food, sanitary

and phyto-sanitary standards.
· Promote general awareness about food safety and food standards
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5.3.2 Industry associations and NGOs
► Fragrance and Flavours Association of India (FAFAI)

FAFAI is an all India apex body of 800 members in the field of Fragrances, Flavours, Aroma
Chemicals, Naturals, and its ancillaries. FAFAI is unique platform that covers not only the fields
of Fragrances and Flavours but also Essential Oils, Aroma Chemicals, Resinoids, Oleoresins,
Concretes and Absolutes, Spice extracts etc.
The Association has been instrumental in representing grievances of members to the various
government bodies in the matter of Import and Export Policy, Excise Duty, Sales Tax, PFA Rules
and Regulations etc. In addition to this various workshops and symposiums are often organized
in different regions of India to educate members and share latest information on the various
aspects of our trade and industry.
► Essential Oil Association of India (EOAI)

EOAI was founded in 1956 as a premier organization of scientists, researchers, industrialists,
traders, manufacturers, exporters, importers and farmers in the field of essential oils. The
foremost aim of the Association is to promote advancement in the knowledge of science and
technology of essential oils and allied products and to help in production and marketing of
standard quality products.
EOAI aims to create a prominent position for India in many natural essential oils in world markets
by diversifying the portfolio of essential oils manufactured in the country, and adopting various
aromatic crops in different climatic zones of the country.
The association has approximately 600 members from across the country. EOAI has been
creating awareness about aroma bearing crops among farmers, researches and industrialist by
disseminating information by organizing workshops and conferences on essential oils at national
and international levels.
► Manipur State Young Farmers Association

Manipur State Young Farmers Association is an NGO which aims to co-ordinate and utilize the
creative activities of rural youth for improvement of community life and agriculture. This
involves organizing local clubs of rural boys and girls and to help them to adopt methods to
improve farming and home making through specific programmes which will develop leadership,
healthy, competition and cooperative spirit in work and re-creation.
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5.3.3 Leading manufacturers
► Tier 1 players
The Indian flavour market is highly fragmented with both purchasers and suppliers ranging from
multinational companies and large Indian industrial houses to small-scale industrial units and
local manufacturers. In comparison, there is a better consolidation in the fragrance market with
larger players like Unilever, Godrej, Dabur, Reckitt Benkeiser, Wipro, Henkel, ITC, etc. generating
most of the sales. The exceptions are the Agarbatti segment and to some extent, the hair oils
segment, which have a host of small players.
► MSME Units
Imphal West and its surrounding areas currently do not have significant MSME units for the
production of fragrance and flavours. However, there is an abundance of flora and fauna in
Manipur due to the conducive climate, and a large percentage of the working population in the
area are engaged in cultivation. Thus with adequate training these people can expand to value
addition work such as primary and secondary processing, as well as development of fragrance
and flavours.
5.3.4 Raw material suppliers
Raw materials required will be aromatic crops from surrounding areas, and materials which have
undergone primary processing, which will be acquired directly from cultivators or through Livelihood
Business Incubators (LBIs). In addition, one time supply of raw materials for tissue culture will also
be required from other parts of the country. Manipur has an abundance of flora and fauna for the
production of fragrant raw materials.
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5.3.5 Financial institutions
Major financial institutions across the region are as follows;
Table 10: Prominent financial institutions in the region
Financial
institutions
Principal financial institution for the promotion, financing and development
SIDBI
of the MSME sector in India
Credit support and related services to promote equitable agriculture and
NABARD
rural prosperity
NEDFi provides financial assistance to micro, small, medium and large
enterprises for setting up industrial, infrastructure and agri-allied projects
NEDFi
in the North Eastern Region of India and also Microfinance through
MFI/NGOs.
Venture capital to promote investments in agri-business projects with the
Manipur SFAC
participation of nationalized banks, SBI ad subsidiaries / IDBI
Financing in agriculture and MSME sector, especially to workers engaged as
Manipur Rural Bank
cultivators and agricultural labourers
Commercial Banks Presence of commercial banks in the district and surrounding areas
Nationalised Banks Presence of nationalised banks in the district and surrounding areas
5.3.6 Research Institutes
The following applied research institutes within Manipur and in other parts of the country will also
act as key stakeholders for the TC in Imphal. These institutes have expertise in various phases of the
fragrance and flavours value chain – from cultivation of crops to development of packaging materials.
► Central Agricultural University, Manipur

The Central Agricultural University (CAU) was established under Department of Agricultural
Research and Education (DARE) in 1993. The university has unique features of having
jurisdiction over six States of North-Eastern Hilly Region (NEH) of India namely, Arunachal
Pradesh, Manipur, Meghalaya, Mizoram, Sikkim and Tripura. Like other Agricultural Universities
of India, the CAU also has integrated programmes of teaching, research and extension
education.
As per mandate, the CAU is offering seven U.G. Programmes in Agriculture, Agricultural
Engineering, Fisheries, Home Science, Horticulture, Forestry, Veterinary Sciences & Animal
Husbandry and Food Process Engineering. The University offers 25 Post Graduate Degree
Programmes in different subjects. For smooth functioning of various programmes, the
University has established seven constituent colleges in different parts of NEH Region.
► Fragrance and Flavours Development Centre (FFDC) Kannauj
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FFDC Kannauj will serve as the mentor TC for the propsed TC at Imphal. FFDC aims to serve as
an interface between essential oil, fragrance and flavour industry and the research and
development institutions both in the field of Agro Technology and chemical technology. The
main objective of the centre is to serve, sustain and upgrade the status of farmers and industry
engaged in the aromatic cultivation and its processing, so as to make them competitive both in
local and global market. Facilities available at FFDC include:
· Supply of planting materials/seeds.
· Production/Processing Facilities on Jobwork / Loan Basis.
· Quality Assurance & Analytical Services.
· Creation of Fragrances & Flavours for various end uses.
· Application of Fragrances in end-products.
· Sale of Essential Oils and its Fractions resultant to development & training.
· Training in various disciplines of essential oil and perfumery industry.
· Field Surveys and Feasibility Studies.
· Consultancy Services.
► Council of Scientific & Industrial Research - National Botanical Research Institute (CSIR -
NBRI), Lucknow
NBRI is engaged in research and development in botany. It is engaged in the development of
agro-technologies. Key objectives of the institute include:
· Basic and applied research on plant diversity and prospection, plant-environment
interaction and biotechnological approaches for plant improvement.
· Development of technologies for new plant and microbial sources of commercial
importance
· Building up germplasm repository of plants of indigenous and exotic origin, including
rare, endangered and threatened species
· Providing expertise and assistance for identification, supply and exchange of plants and
propagules, garden layout and landscaping
· Dissemination of scientific knowledge and technologies on plants and microbial
resources through publications, training, capacity building and extension activities
► Council of Scientific & Industrial Research – Central Institute of Medicinal and Aromatic Plants
(CSIR-CIMAP), Lucknow
CIMAP is a plant research laboratory steering multidisciplinary high quality research in biological
and chemical sciences and extending technologies and services to the farmers and
entrepreneurs of medicinal and aromatic plants (MAPs). The institute also has scientific
collaboration agreements with Malaysia.
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CIMAP’s contribution to the Indian economy through its MAPs research is well known. Mint
varieties released and agro-packages developed and popularised by CIMAP has made India the
global leader in mints and related industrial products. CIMAP has released several varieties of
the MAPs, their complete agro-technology and post-harvest packages which have revolutionised
MAPs cultivation and business scenario of the country. The functions of CIMAP are:
· To pursue developmental, promotional and related work on cultivation, production,
processing, utilisation and marketing of medicinal and aromatic plants with specific
reference to their practical application and utility;
· To cultivate medicinal and aromatic plants, either in its own farms or through other
agencies, and to process wherever necessary, the plant materials for obtaining their end
products;
· To carry out, in collaboration with other agencies, introduction, acclimatisation
(including measures for prevention and control of pests and diseases) of exotic-species
and also production of authentic high-yielding seeds, leaves and other propagating
materials of medicinal and aromatic plants of economic importance;
· To encourage cultivation of medicinal and aromatic plants in suitable regions of the
country;
· To carry out surveys of resources of medicinal and aromatic plants and to maintain
economic statistics of the raw materials as well as finished products
► Council of Scientific & Industrial Research - Indian Institute of Integrative Medicine (CSIR-
IIIM), Jammu
IIIM is a national Institute of the CSIR of India, with primary focus of research on drug discovery
from natural products (medicinal plants and microbial species). IIIM is a multi-disciplinary
organization encompassing the natural products chemistry, medicinal chemistry, pharmacology,
microbiology, biotechnology and botanical sciences. The mandate of IIIM is to discover new
drugs and therapeutic approaches from Natural Products, both of plant and microbial origin,
enabled by biotechnology, to develop technologies, drugs and products of high value for the
national and international markets. The institute is located in Jammu
► Central Council of Research in Ayurveda and Siddha (CCRAS), New Delhi

CCRAS is an autonomous body of the Ministry of AYUSH (Ayurveda, Yoga & Naturopathy, Unani,
Siddha and Homeopathy), Government of India. It is an apex body in India for the formulation,
co-ordination, development and promotion of research on scientific lines in Ayurveda and Sowa-
Rigpa system of medicine.
In addition to various other activities, CCRAS is engaged in medicinal plant research. A

demonstrative cultivation programme of the Council is being carried out at 5 gardens, including
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one at Ayurveda Regional Research Institute, Itanagar (Arunachal Pradesh). It is also

undertaking in-vitro propagation studies through its Plant Tissue Culture Laboratory in Pune,
and pharmacognosy for identification of drug material.
► Indian Institute of Packaging (IIP), New Delhi

The Indian Institute of Packaging (IIP) is a national apex body which was set up in 1966 by the
packaging and allied industries and the Ministry of Commerce, Government of India, with the
specific objective of improving the packaging standards in the country. The Institute is an
autonomous body working under the administrative control of the Ministry of Commerce.
The Institute endeavours to improve the standard of packaging needed for the promotion of
exports and create infrastructural facilities for overall packaging improvement in India. This is
achieved through the Institute’s multifarious activities which are today, in line with those of
premier packaging institutes the world over. The Institute aims to make India a focal point for
contemporary developments in Art, Science, Technology and Engineering, with respect to the
field of Packaging.
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Opportunity and
Need Assessment
Page 72 of 238
6. Opportunity and need assessment
6.1 Global Market Scenario
The global flavor and fragrance market was worth $23.9 billion in 2013 and is expected to reach
$33.5 billion by 2019, growing at an estimated compound annual growth rate (CAGR) of 5.8% from
2014 to 201924. Of the total world market, flavours account for approximately 52% and fragrances
for the remaining 48%. Of the main global regions, the combined flavours and fragrances market is
largest in North America, followed by Asia-Pacific and Western Europe.
Table 11: Total Global Consumption of Flavours and Fragrances by Region, 2012 – 2017 (US$ Millions)25
Country / Region 2012 (US$ M) 2017 (US$ M) 2012-2017 (% Growth

estimated p.a.)
Western Europe 3,584.6 3,804.4 1.2
Eastern Europe 780.1 909.2 3.1
North America 5,088.3 5,816.0 2.7
South America 1,240.6 1,800.1 7.7
Asia-Pacific 4,783.4 6,645.9 6.8
Middle East & Africa 1,074.6 1,369.7 5.0
Global Total 16,551.6 20,345.2 4.2
The dynamics of the market are gradually changing; as incomes are rising in the world’s emerging
markets, so is consumer spending. Members of the new, and still emerging, middle classes are for
the first time able to afford to buy packaging food and beverages and personal care items. This
change means that many of the top flavour and fragrance companies are placing renewed emphasis
on the emerging markets of Asia-Pacific, South America and the Middle East/Africa. Urbanisation
and changing lifestyles are also boosting market growth in developing regions.
Over the recent past, industry sales of fragrance and flavour have grown in the mid-single digit range
and this is expected to continue as a result of favourable demographic and industry specific drivers.
Specifically, increased consumption in emerging markets, recovery in developed economies, and
innovation are likely to fuel growth going forward.
24
Source: BCC Research: Global Markets for Flavours and Fragrances
25
Source: IAL Consultants
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Global Market for Flavours

The beverages sector was the largest global end-use
market for flavours in 2012 with a share of 34%, followed
by the dairy industry at 13%. The highest annual growth
rates, for a single market, are forecast in the beverages
sector at 5.2% per annum, followed by snacks at 4.3%
p.a., and dairy and ‘others’ (tobacco, animal feed, pet
food etc.), both at 4.1% p.a.
Global Market for Fragrances 2012

The soap and detergents industry is the
largest user of fragrances in the global market at 32.3%
share, followed by the cosmetics and toiletries sector at
26.9% and fine fragrances at 18.4%. The fastest annual
growth to 2017 is forecast for the cosmetics and toiletries
sector at 4.9% p.a., followed by the soaps and detergents
segment at 4.5% p.a.
Three key trends can be seen in the global F&F market26:
(i) Consolidation: There is a growing spread between market share leaders and middle market
companies. The top 10 companies in the industry together account for nearly 77% of the
industry sales today, as compared to 64% in 2004
(ii) Evolving Consumer Tastes and Preferences: Health and wellness is on the minds of
consumers. As a result of the increased focus on food safety and content, organic food sales
as a percentage of overall food sales have gone up from 1.5% in 2000 to 5.6% in 2013.
(iii) Emerging Markets are delivering solid growth: Consumption levels in emerging markets are
catching up with the West. Thus, global consumption is increasing significantly.
Key Players in the Global Market
The global flavor and fragrance market is dominated by a few major companies, including Givaudan
SA (Switzerland), Firmenich International SA (Switzerland), International Flavors & Fragrances Inc.
(U.S.), Symrise AG (Germany) and Takasago International Corp. (Japan). F&F companies are
targeting their activities toward highly populated and fast-growing regions of the world such as Asia,
Latin America, the Middle East and Africa.
26
Source: Tully and Holland: Fragrances and Flavours Industry Update
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The charts below indicate the major players and their value share estimates in % in this industry in
2009 and 201327.
Market Shares of Top 10 Companies: Market Shares of Top 10 Companies:

2009 2013
The aggregate share of the top 10 players in the F&F industry was valued at US$ 23.47 billion in
2013, i.e., almost 80%28 of the world market. Givaudan lead this industry with a market share of
about 20.5% with the 10th player only having a share of about 2.2% market. The remaining 20% of
the market is highly fragmented with numerous players.
The top 10 (MNC’s) are increasing their market share whereas all others i.e., (small & medium
enterprises) worldwide are actually losing market share steadily over the years.
6.2 Indian Market Overview
India’s flavor and fragrance market is expected to increase from $800 million in 2013 to $1.2 billion
in 2019, growing at a CAGR of 8.4% from 2014 to 201929.
The Indian market has witnessed a surge in demand for fragrances compared to flavors. The
country’s hot and humid climate has created an increase in demand for products such as soaps,
deodorants and perfumes. Indian consumers have started purchasing functional foods, preventive
medication and nutraceuticals due to rising concerns about health disorders such as diabetes and
cardiac disorders. This trend will drive the flavor and fragrance market since these products use
flavors extensively to make food more palatable with appealing aromas.
27
Source: Leffingwell.com: Fragrance and Flavours Top 10
28
Source: www.leffingwell.com
29
Source: BCC Research: Global Markets for Fragrance and Flavours
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Figure 8: Indian Fragrance and Flavour Market Analysis30
The Indian F&F market is highly fragmented with both purchasers and suppliers ranging from
multinational companies and large Indian industrial houses to small-scale industrial units and local
manufacturers. This is particularly applicable to the flavour industry and more particularly to
savoury, bakery and confectionary segments where the manufacturing process is relatively simple in
comparison to others. In this case, even local eateries and individual homes contribute significantly
to the increase in market. In comparison, there is a better consolidation in the fragrance market with
larger players like Unilever, Godrej, Dabur, Reckitt Benkeiser, Wipro, Henkel, ITC, etc. generating
most of the sales.
Key Players in the Indian Market
The Indian F&F market has a very competitive landscape, with three sets of players: the global players
or foreign multinational companies (MNC’s), the large Indian players, and regional or small domestic
players. Increasing globalisation has important ramifications for foreign MNCs as well as large Indian
companies with pan-India presence and with small international footprints. International houses
account for about 70%31 of the organized Indian market while Indian companies like M/s., S. H. Kelkar
& Company Pvt. Ltd., Oriental Aromatics Ltd., Ultra International Ltd., Khattri Fragrances & Flavours
30
Source: The Indian Consumer Market: The Pinnacle of the Fragrance and Flavour Industry, by Sant Sanganeria
31
http://insightalpha.com/news_test.php?cid=81&sid=81&nid=154
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Limited, Gupta & Company (P) Ltd. Sachee Aromatics Limited, Aarav Fragrances, etc. cater to the
rest of the market. M/s. S.H. Kelkar & Company Pvt. Ltd. leads the sales among Indian F&F companies
followed by other houses as mentioned above.
The top 6 cities account for 53% of players across 17 locations. The concentration of players is in
NCR, Mumbai, Chennai, Bangalore, Hyderabad regions. Locations near ports or raw material source
are preferred.
Global and Indian Players in Cities across

India
Location Global Indian
Bangalore 1 2
Chennai 3
Daman 2 1
Delhi 3
Mumbai 2 1
Hyderabad 1 1
Bharuch 1
Bhiwadi 1
Coimbatore 1
Ghaziabad 1
Gurgaon 1
Harihar, Karnataka 1
Jammu 1
Kolenchery, Kerala 1
Kozhikode, Kerala 1
Mahad, Maharastra 1
Mangalore 1
Noida 1
Ongole, AP 1
Pune, Maharastra 1
Raigad, Maharashtra 1
Total 11 21
► There are 20 key players in 21 cities, across 32 locations

► Essential oil producers are located near crop production centres
► Fragrance & flavour manufacturers prefer locations near ports
6.3 Opportunity for establishment of the TC
After Brazil, India is the richest country in flora, with 15 agro-climatic zones and nearly 1500
aromatic species available. Kashmir and Himachal are prime locations for exotic aromas, such as
lavender, rose, saffron, clary-sage, lavender, cedarwood, etc. Mint is grown in U.P. & Bihar, which
can be tapped to the extent of meeting 80% of total global need. Spice oil and oleoresin, such as
cardamom, black pepper, nutmeg, and mace can be produced in Kerala and Cochin. Aharwood,
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lemongrass, vetiver, geranium, patchouli, stevia, ginger, turmeric and citronella are present in the
North East.
Currently, there is only one existing Technology Centre focusing on Fragrances and Flavours in India.
This is located in Kannauj. In addition to this, there exist several Flower, Aromatic and Medicinal Plant
production Centres. These have several special equipment, including GLC, HPLC, Densitometer,
Freeze Dryer, Flow Injection Nitrogen Analyzer, Plant Growth Chamber, and Semi Preparative HPLC
with accessories, UV-VIS Spectrophometer, Kryotype Analyzer, HPTLC, Portable Photo Synthesis,
Water Potential Meter, Poly Ploidy Analyzer, LC-MS, GC-MS, PCR Machine, Inverted Microscope,
Spectra Photo Meter, and FTIR Spectra Photo Meter.
There are 5 Technical Assistance Centres in the country. These are Central Institutes for Medicinal
and Aromatic Plants (CiMAP) Regional Research Labs.
The map below indicates the current infrastructure facilities in the country:
Thus, there is potential in India for the development of the F&F sector in India through providing
opportunities for processing and manufacturing of essential oils and related products which can cater
to established FMCG companies. There is scope to capitalize on areas which are hubs for medicinal
and aromatic plants, where there is a lack of centres. One key region is the North East, where there
is an abundance of medicinal and aromatic plants, but there is a challenge in transporting these for
processing due to the perishable nature of raw materials. In this regard, Technology Centres in the
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F&F sector are being proposed in Imphal as well as in Pasighat in order to create an ecosystem for
processing of fragrance and flavours in the North East region.
6.4 Opportunity in Imphal and the North East Region
Opportunity in the Fragrance and Flavours Sector

Northeast India with a huge diversity in flora, vegetation, culture, climate etc, is a known region rich
in aromatic and medicinal plants that have potential in contributing to the economic upliftment and
supporting the health security.
Imphal West is home to several aromatic and medicinal plants, including fruit bearing trees, lemon
grass, citronella, patchouli, turmeric, peppermint, ginger, stevia, vetiver, flowers such geranium, and
spices such as nutmeg. Given the vast presence of aromatic and medicinal plants in the region and
the increased global demand for fragrances, flavours, aroma chemicals, essential oils, herbal
medicines and cosmetics, and trends such as aroma therapy which require the manufacturing of
essential oils, Imphal is at a prime location for the establishment of a Technology Centre in the
fragrance and flavours sector. This TC will be able to cater to the growing domestic and international
demand for essential oils and related F&F products.
The table below depicts the use of agricultural land in the Imphal West district32:
Land use Area / production
Horticultural Potential Area 15267 ha
Area Under Vegetables 1106 ha
Vegetable Production 8490 MT
Area Under Spices 1265 ha
Gross Cropped Area 28241.46 ha
Net Sown Area 21236.40 ha
In addition, initiatives are being taken in the State to promote entrepreneurship development. One
such initiative is ‘Make in Manipur for employment generation’, which is based on three pillars of
Community Mobilisation, Transparency and Universal Coverage. Each phase targets 2.25 lakh
households such that by March 2017, 4.5 lakh households’ income level should be increased by an
additional income of at least Rs. 60,000 per month. Nine Livelihood Business Incubators (LBIs) have
been established in each of the 9 districts of Manipur. The objectives of these LBIs include job
creation, promotion of entrepreneurship, grassroot economic development, and promotion of
innovation. Common items in LBIs are to support major income generating activities including
aromatic and medicinal plant cultivation, stevia cultivation and dehydration, ginger and turmeric
processing, etc. LBIs sign MoUs with cultivators, under which they provide planting materials to
cultivators, and buy back materials from them. They utilize these materials for processing. In turn,
32
http://kvkimphalwest.org/kvk-imphal-west-page.php?pageid=7
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they form agreements with various large companies for the procurement of essential oils and other
fragrant raw materials.
A hub-and-spoke model is proposed between these LBIs and the TC. This model is described in section
6.4.2.3
Opportunity in Other Sectors

There is large scale migration out of the North-East area. This is an important factor which needs to
be considered when planning the TC. The reasons for migration out of the North-East include:
► Push Factors
o Socio-political unrest in the region - This includes the presence of militants, public
strikes, etc.
o Lack of employment opportunities in the North-East region - This is a cause for large
scale migration out of the region. The private sector in the state is minimal, and thus
there is a lack of employment opportunities other than limited government jobs and
agriculture.
o Lack of higher education opportunities and vocational training
► Pull factors
o Availability of job opportunities in major cities
o Better educational opportunities with multiple choices of branches of study
66 percent of people migrate from the North East for education opportunities, whereas 35 percent
migrate for employment opportunities33.
Several people from the North-East migrate to major cities across India and get jobs in sectors such
as BPO, beauty and wellness, IT, hospitality industry, spas, fashion industry, etc. 34. This is facilitated
by the ability to communicate in English, and the hospitality / socially oriented culture in the North
East.
In order for the TC to increase its reach, it must provide skill development in areas which would enable
people to get jobs and improve their livelihood. Thus, areas of CAD / CAM courses are being provided.
33
http://www.thehindubusinessline.com/economy/50-lakh-people-may-migrate-from-northeast-in-5-
years/article2749925.ece
34
http://timesofindia.indiatimes.com/city/guwahati/14mn-to-migrate-from-northeast-by-2021-in-search-of-jobs-as-
demand-fails-to-meet-supply-Study/articleshow/11611220.cms
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6.4.1 Primary Research
As part of the preparation of the DPR, discussions were held with some key stakeholders. This
included cultivators, individuals working towards providing training and employment to cultivators,
stakeholders of LBIs, industrialists, master trainers who trained at FFDC Kannauj, and experts in the
sector in Imphal as well as from FFDC Kannauj. The purpose of the primary research was to
understand the current scenario, issues, challenges and future requirements that the Technology
Centre Systems Program of the O/o DC MSME can serve in the future. The research also included the
support requirements of these key stakeholders in the F&F value chain with respect to skill
development, equipment for processing and consultancy services.
Key inferences drawn from primary research are as follows:
Cultivation:
► There is vast scope for cultivation and processing of aromatic and medicinal plants due to
their large availability in the area
► Initially the TC should focus on the following medicinal and aromatic plants: stevia,
lemongrass, citronella, turmeric, ginger and cardamom. At a later stage it can expand to
other MAPs such as patchouli, geranium, spices, etc.
► The main requirement of cultivators is skill development and planting materials
► Processing of MAPs into essential oils requires a critical volume of the raw materials.
Farmers cannot achieve this volume of production alone.
Processing & Value Addition:
► There is a lost opportunity due to the inability to provide value addition services. Thus, raw
materials are currently sold to larger companies and are processed by them.
► Currently, cultivators are selling their produce as it is for low prices in the market. Primary
processing such as drying will fetch significantly higher prices for their produce. For
example, ginger is sold in the market by farmers at Rs. 5 per kg. Ginger which has been dried
using a dryer can be sold at Rs. 120 per kg.
► There is a lack of facilities available for value addition, such as dryers, etc.
Testing and Quality Assurance:
► There is a requirement for lab skill training in instrumentation, testing and quality assurance.
► There is a need for quality testing in order to export products. This facility is currently not
easily available to cultivators. It would be beneficial for quality certification for export of
dried and processed raw materials.
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► For food processing industries, testing is a challenge as samples are currently sent to big
cities. This is challenging due to the lack of connectivity, particularly for liquid samples.
Entrepreneurship and Marketing:
► Obtaining market linkages are also a challenge, particularly for cultivators in Manipur.
► There is a difficulty in obtaining bank loans due to lack of knowledge on undertaking financial
analysis and preparing technical and financial feasibility reports.
► Export requires a critical volume which cannot be achieved by individual cultivators / small
scale entrepreneurs.
Details of stakeholder discussions can be found in Annexure 19.4.
6.4.2 Supply, Demand and Potential for the TC
Market opportunity can be viewed in terms of supply, demand, and the ability to convert the materials
supplied into products demanded. North East India has an abundance of flora and fauna, which
includes aromatic and medicinal plants. There also exists a domestic and global demand for
fragrances for Fast Moving Consumer Goods (FMCG) companies for use in products requiring
fragrances such as detergents, soaps, etc. as well flavours for use in the packaged food industry,
perfume products, cosmetics, etc. There is also a growing demand under pharmaceuticals for natural
medicinal products, and a growing market for aromatherapy. Thus, there is a requirement for the
processing of raw materials into finished products such as essential oils, and a need for quality
assurance in order to ensure the marketability of these products. The vast potential of Imphal and its
surrounding areas to cater to this market due to the abundance of raw materials can be tapped into
through the establishment of the TC.
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6.4.2.1 Supply
The North East region harbours well over 50% of Indian flora.35 All major forest types of India viz.
Tropical West Evergreen Forest, Tropical Moist Deciduous Forests, Sub-tropical Pine Forest, Tropical
Dry Deciduous Forest and Montane Wet Temperate Forest found in India are also available in Manipur.
These forests are home of very wide range of flora and fauna. Manipur is listed in the top 10 hotspot
biodiversity rich zones of the world.
Out of the 9 most important vegetation types of India, 6 are found in the North East region. Six major
forest types are found in the region, and these forests harbour about 8,000 out of 15,000 species
of flowering plants.
Table 12: Climatic Condition and Plant Diversity in North East Region36
State Forest Climatic Condition Plant Diversity

Cover (%)
Mizoram 91.27% Annual Rainfall: 2160 - Flowering plants around 2200
3500 mm species
Temperature: 11 to
29°C
Arunachal Pradesh 80.43% Annual Rainfall: 1500 - Flowering plants around 5000
3750 mm species, but 238 are endemic to the
Temperature: 0 to 31°C state. The state rich with 500
species of orchids
Sikkim 82.31% Annual Rainfall: 2700 – Flowering plants around 4500
3200 mm species
Temperature: 0 to 28°C
Nagaland 81.21% Annual Rainfall: 2000 Flowering plants around 2250
mm species
Manipur 77.40% Annual Rainfall: 1250 – Flowering plants around 2500
2700 mm species
Temperature: 14.5 to
38°C
Meghalaya 77.23% Annual Rainfall: 4000 - Flowering plants around 3500
11,436mm species
Tripura 76.95% Annual Rainfall: 2250 – Flowering plants around 1600
2500 mm species, of which 14% of species
Temperature:4 to 38°C found is endemic
Assam 35.30% Annual Rainfall: 2000 - Flowering plants around 3010
8000 mm species, from which 102 species are
Temperature: 5 to 32°C endemic. State is rich in bamboo
diversity (42 species)
35
http://manipurforest.gov.in/Downloads/Souvenir%20full.pdf
36
North-East India an Ethnic Storehouse of Unexplored Medicinal Plants – 2012, by Raja Chakraborty (Creative Educational
Society’s College of Pharmacy, Kurnool), Biplab De (Department of Pharmaceutical Science, Assam University), and Saikat
Sen (Oil Technological Research Institute, JNTU Anantapur)
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As per records available in the database of the Foundation for Revitalization of Local Health
Traditions (FRLHT), over 6500 species are used medicinally in the country and North East India has
a large share of this with more than 60% presence. A perusal of the prioritised medicinal plants for
promotion by the National Medicinal Plants Board (NMPB) reveals that over 80% of the listed plants
exists in the region37. There are a large number of unique, narrowly distributed, and endemic species
present in the North East Region. The current trend is to harvest these plants from the wild and trade
them elsewhere. Thus, they move as raw material to other parts of the country where they are
processed. This requires large transportation costs, which is a major bottle neck for the resource
utilisation.
The North East region, particularly Manipur, has a great scope in aromatic and medicinal plant
development. Currently there is not much organised harnessing of the resources. The collections are
from wild and plantations are negligible. Harvesting and management is not undertaken in a
sustainable manner. Further the there is a low presence post-harvest technology, value addition and
manufacturing. Steps are being taken by the government to address the need for primary processing
activities through the establishment of LBIs. However, there is a requirement for secondary
processing activities. The remoteness and difficulty in transportation, lack of know-how and
infrastructure for processing, and absence of marketing centres pose a great hurdle in developing
the sector. However, the availability of waste land for cultivation, availability of manpower, and a
suitable climate provide an opportunity for the establishment of the TC.
Figure 9: Distribution of Medicinal Plants in India38
Geographic Region Estimated no. of medicinal plants

Trans Himalayas 700
Himalayan 2500
Desert 500
Semi-Arid 1000
Western Ghats 2000
Deccan Peninsula 3000
Gangetic Plain 1000
North East India 2000
Islands 1000
Coasts 500
The detailed list of medicinal plants present in Manipur are provided in Annexure 9.3
37
Medicinal and aromatic plants – an underutilized resource in Northeast India for health and livelihood security, by K.
Haridasan (Advisor – FRLHT)
38
Potential and Prospects of Medicinal Plants in North East India and expectations of stakeholders, by R.S. Jat and Jitendra
Kumar – ICAR-Directorate of Medicinal and Aromatic Plants Research
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6.4.2.2 Demand
The demand for aromatic and medicinal plants as well as essential oils produced from these are
rapidly growing due to changing consumer trends ad increased disposable income. This is reflected
in an increased demand for packaged foods, natural and herbal products, as well as the growth of
fields such as aroma therapy and Ayurveda across the world. Growing consumer awareness regarding
health benefits associated with natural and organic personal care products is a key driving factor for
global essential oil market. Growth of organic product industry has prompted major manufacturers
to shift their focus from synthetic to natural additives. Growing use of essential oil in the preparation
of natural fragrances and flavours on account of their increasing demand across key end-use
industries is also expected. The essential oil market size is expected to reach US$ 11.67 billion by
202239. The following sectors encompass the key areas for demand of MAPs, fragrances and
flavours, and essential oils:
a. FMCG Companies
Some of the key Indian FMCG companies include Hindustan Unilever Ltd., Dabur, Marico
Limited, ITC Limited, Nestle India, Parle Agro, Amul, Kwality, Godrej Consumer Products,
Britannia, etc.
· Fragrances: FMCG companies are key demanders of fragrances. Personal wash,
household cleaning materials, fabric care, personal care and haircare products
constitute around 90% of the Indian fragrance market. FMCG companies are rapidly
expanding and catering to an increasing number of people due to increases in
disposable income.
· Flavours: The demand for flavours is increasing due to a growth in the packaged
foods industry, as well as an increase in health consciousness of individuals. This is
increasing the demand for natural flavouring products. The growth forecast of the
Indian food industry in the future is positive and expected to be 8 to 10% CAGR
between 2015 and 2020.
b. Pharmaceuticals
Key suppliers of herbal drugs and cosmetics in India include Dabur, Zandu, Baidyanath,
Himalaya, etc.
· Ayurveda / Herbal Drugs: The Indian ayurvedic drug market is about Rs. 8000 to
9000 crores40.There is a growing global demand for ayurvedic / herbal drugs due to
a growing health consciousness and demand for natural products.
· Cosmetics: There is an increased demand for herbal cosmetics due to customer
consciousness on the potential side effects of chemicals, and growing awareness
about herbal treatments. Himalaya, Forest Essentials, and Biotique, are among some
of the most established brands in the ayurvedic cosmetics sector.
c. Aromatherapy
Aromatherapy refers to the use of aromas for their therapeutic and healing properties. The
primary factor for the growth of the global aromatherapy market is the growing awareness
39
Grand Research Inc.
40
http://articles.economictimes.indiatimes.com/2016-03-30/news/71926463_1_new-drugs-cosmetics-act-such-drugs
Page 85 of 238
about herbal products among individuals. The aromatherapy market is segmented based on
the procedure of usage – aerial diffusion, direct inhalation, and topical application.
d. Agarbatti / Dhoopbatti
Agarbatti and Dhoopbatti are used for religious purposes as well as for diffusing fragrance.
The incense stick industry size is Rs. 5000 crore, of which organized players account for
around 50%. The export sector is growing at 15-20% per year as demand is growing in some
Latin American countries, while the domestic demand is expanding at a rate of 3-4%. The
country wide incense stick market is around Rs. 2000 crores. The industry is highly
fragmented with several regional players41.
6.4.2.3 Potential for the TC
The growing demand for fragrance and flavours in various industries coupled with the abundant
supply of aromatic and medicinal plants in Imphal and surround North Eastern areas provides an
opportunity for the establishment of a TC in the area.
Currently, there are 300 essential oils which are used globally. Of this, only
around 50% are cultivated and the rest are by-products of the primary
industry, or are harvested from natural wild plants. Of these 300 essential
oils, 110 contribute to 95 per cent of the global consumption in the F&F
industry. 10 essential oils are Major Oils which are used maximum in trade,
accounting for 80% of world trade in essential oils. These oils are used in
high quantities and have low prices. 150 essential oils are Minor Oils, and
contribute to 20% of world trade. These have high prices and are used in
small quantities. In terms of countries to which India provides exports, 75%
of India’s exports of MAPs go to France, Germany, Japan, UK, USA and
Switzerland. 25% of the exports go to Pakistan, Spain and Bangladesh42.
The TC will provide assistance to cultivators and entrepreneurs across the value chain through
training and provision of materials and equipment.
Thus, the TC has the potential to support cultivators and entrepreneurs in the fragrance and flavours
industry, particularly in the areas of cultivation methods and essential oil extraction from medicinal
and aromatic plants through:
41
http://articles.economictimes.indiatimes.com/2015-08-09/news/65379696_1_incense-sticks-cycle-pure-agarbathies-
export-market
42
http://www.ffdcindia.org/pdf/global_scenario_19032015.pdf
Page 86 of 238
► Training programmes in cultivation, primary and secondary processing of aromatic plants

and medicinal plants; packaging and marketing of aromatic and medicinal plants and
essential oils; quality assurance and testing of essential oils, etc.
► Consulting services and supply of planting materials to cultivators for crops for cultivation
for the F&F industry. This will include provision of tissue culture plants and information on
sustainable agriculture practices.
► Infrastructure and equipment for production, planting material for cultivators and
equipment for processing and value addition for entrepreneurs to utilize on a pay per use
basis. Equipment will also be provided for product development, packaging and marketing.
► Testing and quality assurance of fragrances, flavour, and essential oils.
CAD / CAM Training

In addition, the TC will provide training in CAD/CAM to students in order to augment their skills and
increase employability. There is a lack of skill development infrastructure in the North-East region
to meet the requirements of the region. There are a total of 80 ITIs in the North East, of which 72
are government-run. The government is taking steps to establish new it is in the region. This
provides opportunity for the TC to provide CAD / CAM courses to enhance the skills of students.
Demand will stem from students training at ITIs, polytechnics and engineering colleges, particularly
during vacation times.
Hub and Spoke Model with LBIs
Under the Make in Manipur Scheme, the government is

Figure 10: Hub and Spoke Model
establishing one Livelihood Business Incubator (LBI) in
each district. These LBIs will undertake primary
processing of MAPs. The TC will operate on a hub-and
spoke model with the nine LBIs in Manipur. LBIs will work
under the mentorship of the Imphal TC for training,
quality control, marketing, research and sustainable
development. The Imphal TC will also procure fragrant
raw materials from the LBIs for further processing.
Thus, LBIs will sign MoUs with farmers, in order to

provide them with planting materials and training for
cultivation of MAPs. Farmers will also be provided with
basic processing equipment such as field distillation
Page 87 of 238
units and dryers. The LBIs will procure the crops (in raw form or partially processed form) and
undertake primary processing of these. Thus, LBIs will serve as a market for farmers.
Similarly, the proposed TC will serve as a market for LBIs. The TC will procure the primary processed
essential oils from LBIs for further processing. They will also undertake testing and quality assurance.
The TC will then market these to various FMCG companies in India and internationally.
Thus, an ecosystem will be formed wherein the TC will provide benefits to LBIs directly, and to
cultivators indirectly through the LBIs.
Case Study: Ginger Processing
There are around 4000 tonnes of ginger available in Manipur alone. Ginger can be sold in its raw
form, after drying, or after processing. Ginger is processed into oil, however the by-products of this
processing process can also be sold. By-products include dry powder and hydrate. The oil is highly
concentrated, and is used for medicines and flavouring. Dry powder is also utilized for flavouring.
Hydrate is leftover after the processing, and is a less concentrated form of flavour, used for food
products.
Currently, locals sell ginger for Rs. 10 per kg. Under the new model of LBIs, the LBIs purchase the
ginger from them for Rs. 20 per kg. LBIs have dehydration machines, and thus undertake dehydration
of the ginger. 1 kg of dry ginger can be sold at Rs. 140 per kg. 330 kg of raw ginger can be processed
into oil, and 1 kg of oil can sell for Rs. 30,000 per kg. In addition, the by-products from processing
can also be sold. The TC can undertake the processing of ginger into oil.
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Requirement for Industry-Oriented Training in the North East Region
There is a high level of educated unemployment in Manipur and in the North East Region. There are
7,01,987 educated youth seeking employment in the Manipur43. The high rate of unemployment,
particularly among the educated youth, is due to the lack of industrial base, absence of private
enterprises, and limited employment opportunities in the government sector.
There is thus a need for strengthening the educational infrastructure, as well as for introducing
application-oriented and industry relevant degree courses. There are a total of 80 ITIs in the North-
East, of which 72 are government run. This skill development infrastructure is not sufficient to meet
the requirement of the people in the Region44. Effective implementation of skill development and
training programmes need to be prioritised, with a focus on industries which can be capitalised on
and promoted in the region. The graduate courses currently available in various colleges within
Manipur are of the traditional nature, which is about learning basic science, or arts, or commerce.
Such degrees do not throw open very many employment avenues outside or within the state, adding
to the already high rate of educated unemployment.
The details of the focus areas and planned activities of the TC have been provided in Section 7.
43
44
http://articles.economictimes.indiatimes.com/2015-04-22/news/61417502_1_development-infrastructure-national-skill-
development-corporation-itis
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6.4.3 Challenges and Opportunities
The F&F industry in India faces several challenges due to a lack of knowledge, infrastructure,
standardization, cost of trade and lack of investment in research and development. These challenges
are further accentuated in the North East region due to the lack of development and integration with
the rest of India, as well as political unrest.
Key challenges faced by stakeholders across the value chain:

► Quality
Aromatic plants are largely a perishable commodity, and thus quality deterioration starts
almost immediately after harvest especially in case of herbs and shrubs. Maintaining Quality
at every step in the value chain is extremely important. This raises issues of capacity
building of all stakeholders in the supply chain starting from, collectors and cultivators to
raw material handlers who are responsible for transport, intermediate storage and
packaging, to retailers in herbal mandis to the manufactures. There needs to be quality
consciousness at every level and strict adherence to quality parameters as laid down in the
concerned pharmacopoeias.
► Lack of knowledge
Cultivators are not aware of value addition methods which they can undertake for aromatic
and medicinal plants. In addition, they do not have information on advanced agricultural
techniques. There is also a lack of processing units available for processing raw materials
and creating essential oils
► Lack of infrastructure
Value addition and processing of aromatic and medicinal plants has the potential of
generating employment. However, there is a lack of value addition facilities and
infrastructure available. Due to the fact that many cultivators and small units cannot afford
equipment for processing, the presence of a common facilities centre would provide
opportunities for players
► Trade
Trade is the biggest driver of overall growth in the sector. Globally there is an increasing
demand for raw material. As per Directorate General of Commercial Intelligence and
Statistics (DGCIS) data, as a net exporter of herbals including medicaments, extracts and
raw herbs, India ranks as the top most exporter in the world45. Even so, the fact remains
that our exports are largely on account of raw material and very little goes out as finished
products, which means that a large part of the revenue accrues to those intermediate
countries who are adding value to the raw material. Further, there are a number of nontariff
barriers being brought in by countries in the guise of excessive quality parameters. This
constant shifting of the goal post has to be taken up in bilateral as well as multilateral trade
forums by India so as to enable domestic companies to get a global foothold.
► Research and Development

The requirement of modern industry is for aromatic and medicinal plants which have the
maximum concentration of the active ingredients. Apart from this, there are global demands
for validation of therapeutic effects of medicinal plants. Hence, there is a need for scaling
up R&D efforts in the sector.
45
Key Issues Facing the Medicinal Plants Sector, by Meenakshi Negi, CEO of NMPB
Page 90 of 238
The proposed TC in Imphal will aim to address various challenges faced across the value chain by
providing training in cultivation, processing techniques and value addition, quality assurance,
packaging and marketing. It will provide planting material to cultivators and equipment for use by
entrepreneurs. It will also provide quality assurance services.
Technology assessment at the India level
Even today, some Indian companies extract essential oils in an unorganized manner. This industry
can grow only by following scientific means and methods of propagation and extraction. Systematic
exploitation of aromatic plants by Indian Industry can bring a great economic advantage to our
country, as we bring more plants that are aromatic under use. Setting up of small-scale essential oil
extraction and processing units can provide ample employment opportunities for the rural youth.
Once these units come into operation, local farmers can be motivated easily for large-scale
cultivation of selected aromatic crops according to the prevalent agro-climatic conditions. During the
initial stages raw material requirement of these industries can be met either through collection from
wild habitats or through intercropping cultivation in agricultural farms. Either way, it will provide
employment to millions of youths from farming communities. The current short comings of several
units in the Indian F&F industry are:
► Lack of research and development, as a result of which new fragrances and compounds are
not developed
► Captive equipment is not available with Indian F&F companies due to high costs of processing
machinery
► Extraction techniques are available but not used due to economic reasons
► There is a lack of quality and safety testing, as well as standardization of products.
Thus, there is an opportunity for the development of a TC which addresses these challenges through
developing new essential oils and aroma chemicals, provide machinery on a pay-per-use basis, and
undertake quality and safety assessment.
Value addition through postharvest technology can also generate further agricultural income and
employment opportunities to many. Conservation of aromatic plants by promoting sustainable
genetic management schemes at the community level is necessary. This can bring equitable
distribution of acquired benefits and improve livelihoods of the rural poor. This can be achieved only
by providing proper training for cultivation, primary processing, grading, packaging, storage and
marketing to rural cultivators.
Sufficient quantity of quality seed and planting material of aromatic plants for cultivators should be
available. Newer agro-techniques (such as new genetic material) and technology should be
developed, assessed, and refined for large-scale cultivation to maintain sustainability and
competitive advantage. Tissue culture transplantation techniques need to be adopted for species
Page 91 of 238
whose propagation through seeding is not easy. Further, analytics laboratories for testing and
maintaining quality controls need to be established.
Thus, priority needs to be given to develop skilled work force to handle all aspects of aromatic plants
through intensive training programs. Evolving a long-term human resource development strategy for
continuous improvement in competence and skills should ensure upgrading technical knowledge for
field personnel. In addition, bio-partnership, networking and providing access to information between
the primary stakeholders namely local communities, R&D scientists and industry is necessary.
The following aspects need to be considered for proper development of the Indian essential oil,
fragrance & flavour industry:
· Substantial investment in Research & Development activities is required in consultation with

Indian industry.
· Well-trained human resource needs to be developed at every level right from worker at
laboratory, field, production, sales, & marketing.
· Promotion and development of quality products with safety and efficacy.
· Non-utilized and underutilized natural resources should be tapped into by promoting farmers to
cultivate aromatic crops with proper market interventions.
· Standardization of number of synthetic & natural aroma products is required.
· There is a need for a platform where farmers, producers, traders, users, exporters, R&D
organizations, educational institutions, and government can meet and share their views.
· Set up of technology diffusion centres in different parts of country according to area specific
needs.
· Create a special task force to gather detail information about Indian natural aromatic plants and
take steps to use them for industry development.
· Set up a specific university to train students to train Indian students to create exotic fragrances
and flavours for the industry, and establish a talent pool for the Indian and the global market.
· Make use of biotechnology and information technology
· Harmonize Indian industry with global safety and regulatory norms.
· Harmonize all chemical classification and communication elements, including labels and safety
data sheets, with global requirements to ensure information on physical hazards and toxicity
from chemicals is available to enhance protection of human health and the environment during
handling, transport, and use at the national, regional, and global level, a very important factor
for trade facilitation.
With the above, in view we propose the establishment of a fragrance and flavour development centre
in Imphal, with a focus on cultivation as well as creation of essential oils and fragrances.
Benefits
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In addition to the above mentioned requirements of the Indian F&F industry which the TC will address,
the following stakeholders will benefit from the establishment of the TC at Imphal:
Environment Cultivators
TC Impact
Consumers MSMEs
Industry
a. Cultivators: Cultivators will benefit through the establishment of the TC as they will be made
aware of technological advances in agri-technology and use of biotechnology for
improvement in crop quality and volumes. In addition, they would gain knowledge of primary
and secondary processing techniques, which would enable them to provide value addition
services and sell higher value products. They would also receive assurance that crops
harvested for the F&F sector would be purchased at fixed rates. By educating cultivators on
advanced cultivation techniques, better quality raw materials will be made available to the
industry.
b. MSMEs: Enterprises engaging in the primary and secondary processing of raw materials into
fragrances, flavours and essential oils will benefit through increased knowledge about
advanced technology and methods in processing and blending. They will also be able to utilize
the equipment available at the TC for processing, value addition, packaging, and testing &
quality assurance. Aspiring entrepreneurs who cannot afford their own machinery will be able
to establish their own enterprises and utilize equipment available at the TC. They will be able
to provide quality assured products to industries and final consumers. They will gain
information on how to market their products, thereby increasing their market reach. They
will also benefit from enhanced research and development offered through the TC.
c. Industry: The industry purchases raw materials and process these themselves, or acquire
them in the processed form of essential oils, fragrances and flavours for use in final products.
The industry will benefit from the establishment of the TC thorugh the development of a
streamlined and sustainable production chain. They be able to acquire quality raw materials
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which have been cultivated through modern agricultural techniques, as well as acquire
quality assured products from MSMEs.
d. Consumers: Consumers will benefit through the development of safe and good quality
products. Raw materials will be cultivated utilising good agriculture practices, and essential
oils will be manufactured while adhering to health and quality standards.
e. Environment: Cultivators will be encouraged to use good agricultural and good field
collection practices. This will ensure that the land is not exploited and is utilized in a
sustainable manner. Proper disposal of chemicals and other raw materials will be undertaken.
Since the industry utilizes several natural products, enterprises engaged in processing will
be encouraged to use the by-products for producing bio gas.
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6.5 Opportunities associated with other mega projects planned in the sector
In Manipur and surrounding areas as well as across India, the following mega projects are planned in
Fragrance and Flavours and related sectors. .
► A Mega food park is being established in Nilakuthi in Imphal East district to promote the food
processing industry in the state. This park will be of significant importance to the TC as by-
products of this industry (such as fruit peels, etc.) could be collected and utilized for by the TC
for manufacturing fragrances and flavours. In addition, industries here may demand flavours for
the manufacturing of packaged foods, etc., and the TC could cater to this demand.
► The North Eastern Institute of Ayurveda & Homoeopathy (NEIAH) is being established in Shillong,
Meghalaya. It is an autonomous institute under the Ministry of AYUSH, Government of India. The
Institute is coming up on a plot of land measuring 20 Acres adjacent to the North Eastern Indira
Gandhi Regional Institute of Health and Medical Sciences (NEIGRIHMS) at Mawdiangdiang,
Shillong, Meghalaya. The institute is to have Ayurvedic and Homoeopathic colleges with the
admission capacity of 60 students each along with a 100 bed Ayurvedic hospital and a 50 bed
Homoeopathic hospital, Documentation-cum-R&D Centre and Pharmacy with Drug Testing
Laboratory. It is being designed to facilitate the promotion of Ayurveda and Homoeopathy, the
expansion of health care facilities, improvement in the doctor-population ratio and R&D on bio-
resources in the North East. This will provide an opportunity for the TC as one of the key focus
areas for the TC is processing of medicinal plants.
► A perfume park and museum is to be set up in Kannauj. This is to provide a world class platform
to ittar (perfume) manufacturers to showcase their skills, as well as to upgrade their skills based
on new technologies. This includes a special perfume manufacturing zone in Kannauj for modern
distillation and extraction units, in addition to the international perfume museum which will
house various varieties of fragrances. This is expected to provide a boost to the industry, with
the establishment of more perfume manufacturing units. This provides an opportunity to the TC
as it will increase the demand for raw materials and fragrances and essential oils.
These mega projects will provide significant opportunities in the fragrance and flavours sector, and
thus will impact the proposed TC.
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Focus Area for

Imphal TC
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7. Focus area for Imphal TC
As mentioned in the previous section, the North East region is a prime location in the country in terms
of the presence of medicinal and aromatic plants. It has areas varying climatic conditions and
temperatures, and thus comprises 50% of Indian flora and 60% of medicinal plant species present in
the country.
The proposed TC in Imphal will address challenges and improve efficiency across the value chain of
Aromatic & Medicinal plants extraction & its value chain. The TC will focus on providing training,
infrastructure and consultancy on methods of cultivation and extraction of essential oils from
aromatic and medicinal plants. The diagram below provides a snapshot of the services to be provided
by the TC:
Figure 11: Focus Areas of the TC
Testing &
Innovation and Processing & Post-Productoin
Quality Training
Development Value Addition Services
Assessment
Cultivation,
Cultivation Essential Oil
Distillation Packaging Processing &
Support Content
Marketing
Herbal Solvent Physical

Certification Value Addition
extraction Extraction Analysis
Chemical
Tissue Culture Fractionation Marketing Quality Assurance
Analysis
Process Stevia Instrumental Entrepreneurship

Advisory Processing Analysis Development
Business Honey
Other Analysis CAD / CAM
Incubation Processing
Consultancy Services
The key services of the TC are divided into five centres:
a) Innovation and Development Centre – This will provide support to farmers to improve the
quality of raw materials,processing & value addition of Aromatic & Medicnal plants , and will
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include a tissue culture lab for plant growth. The centre will provide consultancy services to
existing MSMEs on process improvement and technology advancements, and business
incubation support to entrepreneurs setting up units in the sector.
b) Processing & Value Addition Centre – The TC will provide equipment for extraction of
essential oils through various methods from medicinal and aromatic plants. It will also include
a steviocide extraction line and a honey processing unit.
c) Testing and Quality Assessment Centre - The TC will provide testing and quality assessment
of various aspects, including essential oil composition, physical analysis, chemical analysis,
instrumental analysis, etc.
d) Post Production Services Centre – The Post Production Services Block of the TC will have
equipment for packaging. It will also provide information on market linkages to
entrepreneurs, and provide certification for products after undertaking a quality assessment.
e) Training Centre – The TC will provide a number of short term, medium term and long term
training courses for cultivators as well as entrepreneurs on cultivation, processing and
marketing of aromatic and medicinal plants, value addition, quality assessment, packaging,
etc. It will provide courses in entrepreneurship development and soft skills training. It will
also provide training services in CAD / CAM for students aspiring to gain technical skills and
increase their employability.
Details of each of these centres in provided in the following sub-sections:
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7.1 Innovation and Development Centre
The innovation and development centre will provide support to farmers in order to improve the
quality of raw materials. It will also include a fragrance and flavour development lab for research and
development in the field and a tissue culture lab for plant growth. The centre will provide consultancy
services to existing MSMEs on process improvement and technology advancements, and business
incubation support to entrepreneurs setting up units in the sector.
7.1.1 Cultivation Support
Cultivation support will be provided to farmers through provision of good quality planting material
which can be acquired from the TC. Agreements will be formed with the farmers under which they
will be provided with planting materials, which will be sold back to the TC. The TC will guide cultivators
on profitable crops which can be grown off-season for use in the aromatic & medicnal plants value
chain industry. Cultivators will also be provided with information on Good Agricultural Practice (GAP)
and Good Field Collection practice (GFCP) standards which have been developed by Quality Council
of India (QCI) and NMPB. This will enable cultivators to make their produce internationally competitive
and improving long term sustainability. They can gain information from the TC on advanced
cultivation methods including the latest developments in agri-technology, role of micro-nutrients,
etc. The TC can procure raw materials from cultivators and also link cultivators with entrepreneurs
in the aromatic & medicnal plants value chain sector in order to ensure that their produce is procured
at fixed prices. In addition cultivators can be engaged in primary activities such as washing, drying,
cleaning, sorting and grading through the TC. The following is the value added through these primary
processes:
Good quality planting Awareness on GAP and

Use of biotechnology
material GFCP
Primary activities (washing,

Modern cultivation Assured sale of raw
drying, cleaning, sorting,
methods, agri-technology material at fixed prices
grading, etc.)
The TC will operate on a hub-and-spoke model with the LBIs in the state. Thus, LBIs will procure raw
materials from farmers and undertake primary processing of these. The TC will procure primary
processed materials from the LBIs for further processing, and also acquire raw materials from
farmers. The LBIs currently have a ‘buy back’ system with farmers, wherein they provide farmers
with plants at a low rate and then buy the raw materials back from the farmers for further
processing. They also provide mentorship to farmers in order to grow profitable crops and adopt
good cultivation methods. The TC will also focus on training LBI personnel on advanced agriculture
practices. In addition, the state has set up gene banks and multiplication centres in order to
preserve various species and supply them to farmers.
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The TC will focus on cultivation and processing of medicinal and aromatic plants. Initially, the
aromatic plants which the TC will focus on include lemon grass and citronella. There is a special
focus on medicinal plants given the conducive climatic conditions for their cultivation in Imphal.
Certain medicinal plants have been identified which the TC will focus on. These have a high market
potential in the herbal medicine field. For medicinal plants, the TC will initially focus on stevia,
ginger and turmeric:
a. Stevia: This is widely grown for its sweet leaves. Stevia is becoming a major source of natural
sweetener as an alternate of sugar. It is rapidly replacing the chemical sweetener like Splenda,
Saccharine and Aspartame. Apart from this, Stevia is nutrient rich, containing substantial amount of
Protein, Magnesium, Miocene, Riboflavin, Zinc, Chromium, Selenium, Calcium and Phosphorus. The
market value of stevia is 2-3 times that of regular crops. Stevia can dried and sold, or can be further
processed for extraction of Total Glycocide (TGC) or Rebocide A. Thus, a steviocide extraction unit is
proposed for the TC. Stevia plants in Manipur have the highest steviocide content in the world.
b. Ginger: Ginger oil is frequently used in the flavour industry. Ginger oleoresin is used as an
ingredient in certain digestives, laxatives, carminative and antacid preparations. It is also used in
anti-inflammatory and pain reduction preparations. In addition to these uses, ginger oil finds limited
use in the cosmetic and perfumery industry where it is used as a fragrance component. Ginger can
be dried and sold or processed into oil. In the course of processing ginger, in addition to the oil,
hydrate and dry powder are also produced as by-products. These can also be sold.
c. Turmeric: Turmeric has a vast variety of medicinal uses. It is used to treat liver ailments, ulcers,
parasitic infections, skin problems, joint pain and inflammation, cold and flu symptoms as well as
general digestive aid. Turmeric also aids in breaking down liver toxins, strengthens the functioning
of the gall bladder, aids in lipid (fat) metabolizing, and stops blood clothing. The steps and by-products
of turmeric processing are similar to that of ginger.
7.1.2 Aromatic & medicnal plants value chain

The TC will work on different extraction techniques for aromatic & medicinal plants based on
demand in market. Such as essntial oil, herbal extracts , resinoids & oleoresins form grasses,
medicnal plants, gums & spices respectively. The facility for steam, hydro steam, solvent extraction
will be there at lab & pilot scale to develop the process & also to sclae up for market trial &
industrial sclae productions.
7.1.3 Tissue Culture Lab
Use of bio-technology by cultivators will enable them to improve the quality of their crops, and
thereby improve the quality of raw materials utilized in the industry. The TC at Imphal will have a
tissue culture lab, which will facilitate the use of biotechnology to improve cultivation. This will enable
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artificial growth of plant samples which can be sold to cultivators. Samples will include patchouli,
geranium, and stevia. The tissue culture lab will contain the following equipment:
Table 13: Proposed list of machines for tissue culture
Unit Cost Total Cost

S. No Equipment Name Number
(INR lakh) (INR lakh)
1. Growth Chambers 2 5 10
2. Laminar Flow 2 1.5 3
3. pH Meter 1 0.2 0.2
4. Autoclave 2 0.75 1
5. B.O.D. 2 1 2
6. Refrigerator 1 0.3 0.3
7. -20 Deep freezer 1 1.5 1.5
8. Hot Air Oven 1 0.75 0.75
9. Electronic Balance 1 0.5 0.5
10. Centrifuge 1 1 1
11. Hot Plate 1 0.2 0.2
12. Shaker 1 1 1
13. Homogeniser (50 Kg) 1 1 1
14. Oven 1 0.6 0.6
15. Hot plate 2 0.15 0.3
16. Magnetic stirrer 4 0.1 0.4
17. Pulveriser 2 1.5 3
18. Glassware, Plastic ware & Chemicals 1 2.5 2.5
19. Polyhouse 1 3 3
20. 1 time investment motherplants- 1 2.5 2.5
Total 34.75
7.1.4 Process Advisory
MSMEs in every sector are plagued with bottlenecks and inefficiencies that compromise their
competitiveness and presence in the market. Handholding is required to enable MSMEs to develop
competencies in the areas of product & process development, operation improvement, streamlining
and standardisation of processes through adoption of international norms, new technologies and
capacity enhancement. Quality of products need to be maintained by supporting innovation for
product development processing and value addition technologies, and adherence to quality norms.
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Therefore, the Imphal TC would have a dedicated professional wing to assist MSMEs by providing
consultancy services in the field of fragrance and favour product development, manufacturing
processes and innovations for improved quality and productivity. In addition, it provide consultancy
services on packaging and marketing of products.
The lab will also provide consultancy services for entrepreneurs in the field of testing and quality
assessment. This will include:
· Setting up of a quality assessment laboratory for essential oils and aroma chemicals,
including designing of the lab, identification of chemicals, glassware, instruments and
standards required for the lab
· Consultancy for the specific criteria like development of specific tests for a particular problem
· Consultancy services to decide the priority items on different reports
· Consultancy services for the stock verification and assessment of their quality
The TC will provide process advisory services to existing enterprises on process and technology
improvement.
7.1.5 Business Incubation
Promoting aspiring entrepreneurs is important for development MSMEs. There often exists a lack of
knowledge on how to establish an enterprise as a result of which aspiring entrepreneurs do not set
up enterprises. Entrepreneurial ideas and ventures need to be fostered and developed in a supportive
environment before they become financially sustainable or attractive enough for venture capital.
Hence, the need arises for incubation centres to promote budding individual entrepreneurs and to
assist them to set up their own enterprises. Typical areas of Incubation support include:
► Conceptualisation and business planning of the enterprise, including products, technology

required, target customers, etc.
► Access to finance, including bank loans, loan funds, guarantee programs, investors
► Access to technology, which includes access to processing and value addition machinery,
packaging machinery, quality assessment, etc.
► Access to market, including linkages with customers and strategic partners
► Facilitation of approvals, including regulatory compliances, clearances
The incubation centre also provide support to promote networking and forging of linkages with other
constituents of the value chain, particularly cultivators and customers such as FMCG companies.
Facilitating tie-ups with such companies would provide MSMEs with assurance of essential oil
purchase.
Figure 12: Key areas of incubation support
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Incubation support may be provided for a period of 1 – 2 years.
7.2 Processing and Value Addition Centre
The TC will provide equipment for extraction of essential oils through various methods from medicinal
and aromatic plants.
7.2.1 Distillation
Distillation is the most economical method of extracting essential oil from spices and aromatic
materials. The main advantage of distillation is that it can be carried out with very simple equipment.
Several essential oils and fragrances are steam volatile, i.e. the steam carries appreciable amounts
of the compound with it. There are three types of steam distillation:
► Hydro distillation: This involves mixing plant material directly with water and boiling the water
in order to separate the essential oil. The essential oil passes with the steam into a condenser
and subsequently oil separator where it is separated.
► Hydro-steam distillation: This involves placing plant material above boiling water in order to
separate the essential oil. The essential oil passes with the steam into a condenser and
subsequently oil separator where it is separated.
► Steam distillation: This involves the use of a distillation unit wherein plant material is distilled
with the steam generated outside the unit in a standalone boiler. Essential oil passes with
the steam into a condenser and subsequently oil separator where it is separated.
The acquisition of one large scale 2 ton steam distillation unit and one small scale 25 kg steam
distillation unit are proposed in the Imphal TC.
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7.2.2 Solvent Extraction
The first stage in an herbal extraction process consists of leaching out the impurities (unusable)
portion of the herb by use of a suitable solvent. This must be done to eliminate the unusable matter
namely, cellulose and lignin present in the cell wall of the plant membrane. All herbs whether dry or
fresh have to be broken into smaller particles before extraction. This increases the surface area of
the herbal matter, and ruptures the plant cell walls making extraction easy. The herbs must be
treated with a suitable solvent, after which concrete, absolute, resenoids and oleoresins are
extracted from the flowers, resins, gums and spices.
The acquisition of one large scale 2 ton solvent extraction unit and one small scale 25 kg solvent
extraction unit are proposed in the Imphal TC.
7.2.3 Fractionation
Fractionation is a process used for value addition of some essential oils and isolates. In fractional
distillation, not all of the vaporized material is collected. Some vaporized material is allowed to flow
back down the fractional distillation column (reflux) so that it can be distilled again and again. This
repeated distillation due to refluxing further separates the close boiling materials and produces
higher purities then by simple distillation. Purification is further aided by the fractional distillation
column. Inside the distillation column, packing or a spinning band is used to maximize the contact
between the ascending vapour and the descending reflux. More vapour liquid contact equates to a
better fractionation.
The acquisition of 200 kg fractionation unit and one small scale 25 kg fractionation unit are proposed
in the Imphal TC.
7.2.4 Stevia Processing
One of the target crops being cultivated in Manipur is stevia. This is due to its increasing demand and
high prices. Stevia is a natural sweetener, and is growing as a healthier alternative to sugar and
artificial sweeteners. Further, stevia plants grown in Manipur have some of the highest Total
Glycocide (TGC) content in the world.
Stevia market is segmented on the basis of extract type and application. According to the extracts,
the market is further segmented as liquid, powder, and leaf. The varied applications of stevia as a
food ingredient include bakery, dairy food products, beverages, packaged food products, dietary
supplements, confectionery, and others. Among the extracts type, liquid extracts are expected to
record a higher CAGR as compared to the other extracts from 2014 to 2020. However, by
application, table top sweeteners and dairy food products sub-segments are expected to collectively
witness a substantial growth during the forecast period i.e. 2014–2020.
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The global stevia market is estimated to value at US$ 347.0 million in 2014 and expected to reach
US$ 565.2 million by 2020, reflecting a CAGR of 8.5% during the forecast period. In terms of volume
consumption of stevia it is expected to reach 8,506.9 tonnes by the end of 2020, registering an
annual growth of around 7-8% during the forecast period46.
Stevia can dried and sold, or can be further processed for extraction of TGC or Rebocide A. Rebocide
A has an extremely high commercial value. Thus, a steviocide extraction unit is proposed for the TC.
7.2.5 Honey Processing
The market demand for honey is also very high. LBIs currently have equipment for primary
processing of honey. This produces raw honey, which requires further processing. The TC will have
a honey processing unit for further processing of refined honey. In addition, the TC will undertake
quality control, testing, analysis and certification of honey for domestic and international sale.
The table below provides a list of machinery which will be required for process technology and
value addition:
Table 14: Proposed list of machines for process technology and value addition
S. No Machine No. Unit Cost (INR Lakhs) Total Cost (INR Lakhs)
1. Steam distillation (2 ton) 1 45 45

2. Steam distillation (25 kg) 1 10 10
3. Solvent extraction (2 ton) 1 90 90
4. Solvent extraction (25 kg) 1 10 10
5. Fractionation Unit (25 kg) 1 8 8
7. Stevioside extraction line 1 850 850
8. Honey processing unit 1 25 25
Total 1083
7.3 Testing & Quality Assessment Centre
Testing and Quality Assessment is a critical factor in making fragrances, flavours and essential oils
internationally competitive. There is a growing concern for quality, safety and health assurances,
and thus it is important for the TC to have a Testing and Quality Assessment Lab. The lab will be
46
http://www.futuremarketinsights.com/reports/global-stevia-market
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NABL accredited, and will provide testing services and consultancy services, development and
assistance services and training services.
► Testing Services: The laboratory will undertake testing of various essential oils and aroma
chemicals.
► Soil Testing Certification: The TC will also undertake soil testing activities and provide
certification for this.
► Development and Assistance Services: The lab will extend necessary help to industries in all
technical assistance with facilities available in the laboratory
► Training Services: The Training Centre of the TC will utilize the lab to provide training in
quality assessment of essential oils and aroma chemicals.
The Testing and Quality Assessment lab will be NABL Accredited and will provide the following types
of testing and quality assessment analyses:
7.3.1 Essential Oil Content
This involves the testing of essential oil (concrete and oleoresin) in crude oil material. This shall be
undertaken through hydro distillation and solvent extraction (described in sections 7.2.1 and 7.2.2).
7.3.2 Physical Analysis
This involves an analysis of the physical aspects of the essential oil in order to assess its quality. This
will be undertaken through optical rotation, specific gravity assessment, refractive index, solubility
in ethanol, and pH testing.
· Optical rotation is the turning of the plane of linearly polarized light about the direction of
motion as the light travels through certain materials.
· Specific gravity is the ratio of the density of a substance to the density (mass of the same
unit volume) of a reference substance.
· Refractive index determines how much light is bent, or refracted, when entering a material.
Refractive index is a fundamental physical property of a substance, and is often used to
identify a particular substance, confirm its purity, or measure its concentration. Refractive
index is used to measure solids, liquids, and gases. Most commonly it is used to measure the
concentration of a solute in an aqueous solution.
· Solubility is the property of a solid, liquid, or gaseous chemical substance called solute to
dissolve in a solid, liquid or gaseous solvent. The solubility of a substance fundamentally
depends on the physical and chemical properties of the solute and solvent as well as on
temperature, pressure and the pH of the solution.
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7.3.3 Chemical Analysis
This involves an analysis of the chemical composition of the essential oil, by measuring the acid value,
ester value, and ester value after acetylation.
Acidic constituents: Since Most of the essential oils contain only small amounts of free acids, hence
acid contents are generally expressed as acid numbers instead of acid percentages. Acid number is
the number of mg of KOH used to neutralize the free acids. The acid number usually increases on
aging, especially if stored improperly and also due to oxidation of aldehydes and hydrolysis of esters.
Esters: This method involves saponification of essential oil as most of the esters present in an oil are
esters present in an oil are esters of monobasic acids. The determination of the ester percentage is
of great importance in the evaluation of essential oils. Ester numbers are used for oils containing
small amount of esters. A high ester number in such cases is indicative of adulterations.
Alcoholic constituents in essential oils: the alcoholic constituents of an essential oil are determined
by acetylation. The oil is acetylized with acetic anhydride and the ester content of the resulting oil is
determined: from this value the percentage of alcohol in the original oil may be calculated. For the
evaluation of essential oils, it is often desirable to know the percentage of total alcohol; i.e. the
percentage of free alcohol plus the percentage of alcohol combined as ester present in the original
unacetylized oil.
7.3.4 Instrumental Analysis (Qualitative & Quantitative)
This involves testing through gas-liquid chromatography (GLC). This involves measuring the relative
quantities of compounds present in the sample in order to understand the composition of a complex
material and purity of active components required as per application.
In gas chromatography, the mobile phase (or "moving phase") is a carrier gas, usually an inert gas
such as helium or an unreactive gas such as nitrogen. The stationary phase is a microscopic layer of
liquid or polymer on an inert solid support, inside a piece of glass or metal tubing called a column.
The instrument used to perform gas chromatography is called a gas chromatograph (or "aerograph",
"gas separator"). The gaseous compounds being analyzed interact with the walls of the column,
which is coated with a stationary phase. This causes each compound to elute at a different time,
known as the retention time of the compound. The comparison of retention times is what gives GC
its analytical usefulness.
This technique helps to detect presence of adulterants which if undetected may have a great impact
on the quality / cost of fragrance material.
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7.3.5 Other Analysis
The TC will undertake various other types of testing such as flash point, non-volatile content, water
test, alkali test, colour, odour & appearance, congealing point, etc.
· The flash point of a volatile material is the lowest temperature at which it can vaporize to
form an ignitable mixture in air. Measuring a flash point requires an ignition source. At the
flash point, the vapour may cease to burn when the source of ignition is removed.
· Congealing point is the temperature at which an essential oil congeals. Higher congealing
point is an indication of good quality rose oil.
· Similarly, several other methods are used to analyse essential oils and test their quality and
components.
The following equipment is proposed for the Testing and Quality Assurance Lab:
Table 15: Proposed list of machines for testing and quality assurance
S. Unit Cost (INR Total Cost (INR

Machine No.
No Lakhs) Lakhs)
1. Gas Liquid chromatograph
8
(Indigenous) 1 8
2. Gas Liquid chromatograph
20
(Imported) 1 20
3. Atomic absorption spectro
15
Photometer 1 15
4. Colorimeter 1 0.35 0.35
5. Conductivity Meter 1 0.4 0.4
6. Rotary Shaker 1 0.75 0.75
7. Flame Photometer 1 0.8 0.8
8. LC MS/MS 1 50 50
9. Polarimeter 2 0.5 1
10. Digital Polarimeter 1 15 15
11. pH Meter 2 0.4 0.8
12. Refractometer 2 0.5 1
13. Digital Balance 1 1 1
14. Specific Gravity Meter 2 0.5 1
15. Triple distillation water unit 1 1.5 1.5
16. Computer 5 0.5 2.5
Total 119.1
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7.4 Post Production Services Centre
In the F&F industry, proper packaging of raw materials as well as essential oils is important to ensure
that the quality of products is not compromised. The Post Production Services Centre will ensure that
products are appropriately packaged. It will also provide entrepreneurs with advice on marketing
their products, including market linkages. It will provide information on potential buyers of their
products.
7.4.1 Packaging
The following considerations must be adhered to while packaging materials in order to ensure that
the material does not deteriorate and does not get contaminated:
· All processed plant materials must be packaged as soon as possible in order to prevent
deterioration of the product, and to protect against exposure of pest attacks and other
sources of contamination
· Processed plant materials should be packaged in clean, dry boxes, sacks, bags or other
containers in accordance with standard operating procedures and national and / or regional
regulations of the producer and end user countries.
· Materials used for packaging should be non-polluting, clean, dry and in undamaged condition,
and should conform to quality requirements for the materials concerned.
· Fragile plant materials should be packaged in rigid containers.
· Wherever possible, packaging agreed upon between the supplier and buyer should be used.
· All packaging materials should be stored in a clean and dry place that is free of sources of
contamination
· Continuous in-process quality control measures should be implemented to eliminate
substandard materials, contaminants, and foreign matter prior to and during the final stages
of packaging.
· In the case of leaves and stems, it is essential that all material is dry to below 10% and dried
herbs should be stored in airtight containers, in a cool and dry place away from light. Roots
and rhizomes should be packaged in laminated bags that have low oxygen permeability and
low internal and external diffusion.
· Bottles and containers containing essential oils should be sterile and properly sealed. They
should be kept in a cool, dry place.
· Labels should be affixed on the packaging which clearly details the product name, place of
production, date of harvest / manufacture, and other quantitative information. The label
should also include information on quality approval and compliance with other national or
regional quality requirements. It should also clearly identify the production batch.
For the packaging activities of the TC, two Bottle Sealing Machines, two Container Sealing Machines,
two Carton Sealing Machines and a packaging mode for aromatic and medicinal extracts are
proposed.
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7.4.2 Certification
In order for products to be internationally competitive, a certification of assurance is required that

products are safe, of good quality, and have been appropriately packaged. The TC can form tie ups
with various associations which can provide certification for products. For example, a tie up can be
formed with IIP to provide certification that products have been packaged properly. Similarly, after
the completion of a quality assessment and packaging of essential oils, the TC can provide a
certification of assurance that the products have been tested and are of good quality. This will
increase the marketability of and provide credibility.
7.4.3 Marketing
The TC will provide MSMEs with marketing assistance for their products. They will provide MSMEs
with information regarding potential customers, and also assist them in developing forward and
backward market linkages with cultivators for raw materials as well as customers such as FMCG
companies. Support will also be taken from the Cluster Network Manager (CNM) for marketing the
products of MSMEs as well as of the TC.
In order to export Medicinal and Aromatic plants in raw or processed form, a critical volume is
required. This is difficult for individual farmers to achieve. Thus, The TC will also for export tie-ups
with export houses, and undertake market development activities. Neighbouring countries will be
target, and tie-ups will also be formed with other countries which have market potential. The TC can
procure the raw / processed materials from multiple farmers or enterprises, and then collectively
export these.
Since with processed MAPs and essential oils a critical volume is often required by FMCG companies
for purchase, the TC could form agreements with MSMEs to purchase these from the enterprises and
collectively sell larger volumes to various companies.
The following equipment is proposed for the Post-Production Services.
Table 16: Proposed list of machines for Packaging
Unit Cost (INR Total Cost (INR

S. No Machine No.
Lakhs) Lakhs)
1. Bottle Sealing Machine 2 0.25 0.5
2. Packaging mode for aromatic and
2 0.25 0.5
medicinal plants
3. Container Sealing Machine 2 0.25 0.5
4. Carton Sealing Machine 2 0.25 0.5
5. Computer/ Laptop 5 0.5 2.5
Total 4.5
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7.5 Training Centre
The TC at Imphal will provide professional training in various courses with focus on the Fragrance
and Flavours sector, as well as CAD/CAM training. The TC will be able to produce skilled workforce
with greater prospects in the fragrance and flavours sector – from cultivation to fragrance
development, packaging, marketing and quality assurance. The duration of courses will be both short
and long term, ranging from 1 day to 1 year in various areas:
► Cultivation of medicinal and aromatic plants

► Processing of medicinal and aromatic plants
► Value Addition of medicinal and aromatic plants
► Quality Assessment of essential oils / aroma chemicals / herbal extracts
► Packaging
► Marketing
► Entrepreneurship Development
► CAD / CAM training
The batch size, number of batches per annum and respective fees has been decided on the basis of
capacity of existing TCs. The TC will start training activity from the first year of its operation across
all specialisations.
The following key areas will be covered by the TCs training programs:
Cultivation, processing, and value addition

The TC will provide training on cultivation techniques for medicinal and aromatic plants, and also
provide training on primary and secondary processing of these MAPs. It will include training programs
for farmers on cultivation practices and information on MAPs which can be grown on their land off
season. Courses will also include information on the domestic as well as global scenario of essential
oils, cultivation practices of key focus crops, training on distillation of cops and extraction and value
addition of essential oils, quality assessment, end uses of essential oils and marketing. There will also
be courses on fragrance and flavour development, including blending of essential oils. It will also
include courses on agarbatti and dhoopbatti making. The courses will be practically oriented in order
to provide trainees with hands on experience. Courses will also cover aspects such as packaging and
marketing.
Quality Testing and Assurance

Quality Assurance of products is of key importance, given the growing awareness of health and safety
of products. In addition, quality assurance is required for exports as well as to increase the domestic
marketability of products. Thus, training will be provided on quality testing and assurance in order to
provide trainees with information on processes for quality testing. They will also be given information
on domestic and global quality requirements of different products, and various accreditations which
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they can obtain as manufacturers in order to improve the perception of their products as good quality
products. Courses will also be designed for students to learn instrumentation. This will increase their
employability with large companies, as it is a key requirement.
Entrepreneurship Development
The TC will also provide training in Entrepreneurship Development. This will include training on how
to start an enterprise, including the process to be followed, registration process, clearances required,
etc. It will also include training on developing business plans, technical and financial feasibility
reports, obtaining financing and availing government schemes. It will also include training
programmes for entrepreneurs who are already running business and wish to scale up and improve
their business performance. In addition, it will include training on soft skills such as management,
human resource development, motivating employees, etc.
CAD / CAM
CAD / CAM courses will also be offered by the TC. This will be available to people who wish to enhance
their skills in design and manufacture of products. It will provide them with employment prospects in
manufacturing industries for design of products and CNC machining. This course will attract students
studying at Engineering Colleges, ITIs, and Polytechnics in and around Manipur.
The table below provides a description of the proposed courses, duration of the course, batch size,
number of batches per year, and annual intake of students.
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Table 17: Details of specialisation, courses, duration and capacity intake
Duration No. of batches

SN Course Type Course name Batch size Annual intake
(days) / year
Kisan Gosthi 1 50 2 100
Cultivation processing & marketing of Aromatic Plants 5 20 10 200
Secondary processing of Aromatic Plants 5 20 10 200
Value addition of Aromatic Plant 5 20 10 200
Quality assessment of Natural Fragrant Raw Material 5 20 10 200
Final written / oral exam to award certificate in
Production of Natural Fragrant Raw Material
Technology (on completion of above four courses) 1.5 NA NA NA
Cultivation processing & marketing of Medicinal Plants 5 20 10 200
1. Short Term Secondary processing of Medicinal Plants 5 20 10 200
Value addition of Medicinal Plant 5 20 10 200
Quality assessment of Herbal extracts 5 20 10 200
Agarbatti, Dhoopbatti, Havansamgri & Perfumery 5 20 10 200
Entrepreneurship skill Development programme on
Medicinal plant and related products 5 20 10 200
aroma and related products 5 20 10 200
Finance and Marketing Management 30 20 12 240
CAD / CAM Training 30 20 12 240
Certification Course in Aroma Technology and its
management ( 6 months) with University of Manipur 180 20 2 40
2. Medium Term
Certification course in Medicinal plant extracts ( 6
months) with University of Manipur 180 20 2 40
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Duration No. of batches

SN Course Type Course name Batch size Annual intake
(days) / year
Entrepreneurship & skill development Certification in
Aroma Technology 180 20 2 40
Medicinal Plant Extract 180 20 2 40
Instrumentation 180 20 2 40
Introduction to Tissue culture and application of
BioTechnology 180 20 2 40
Entrepreneurship & skill development PG Diploma in
3. Long Term Entrepreneurship & skill development PG Diploma in
Tissue culture and application of BioTechnology 360 20 1 20
Total 3060
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The TC will have adequate installed capacity of infrastructure like machines, computers etc. required
to provide training to the proposed student capacity under various specialisations. The estimated
cost of these machines is approximately INR 34.25 lakhs. The following table provides the details of
the same:
Table 18: Proposed list of machines for training
Budgeted Cost Total

SN Training Machines Nos.
(INR lakhs) (INR lakhs)
1. Field Distillation Unit (100 kg) 1 2 2
2. Field Distillation Unit (200 kg) 1 3.5 3.5
3. Distillation Unit (25 kg) 1 0.75 0.75
4. Seed Drier (10 trays) 1 1 1
5. Clevenger Apparatus ( 5 & 10 Kg ) 4 0.25 1
6. Soxhlet extractor ( 5 & 10 Kg ) 4 0.375 1.5
7. Seed Germination Unit (4 Trays) 1 2 2
8. Leaf Dryer (500 kg) 2 1.5 3
9. Dryer with humidifier (500 kg) 1 3.5 3.5
10. Computers for CAD/CAM 20 0.5 10
11. Software for CAD/CAM 20 0.3 6
Total 34.25
7.6 Industry collaborations and associations
The objective of this section to understand the potential areas of collaboration and association the
new TC at Greater Noida can form and further support MSMEs. The key stakeholders have been
identified in section 5.3.
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Figure 13: Potential areas for collaboration or association with key stakeholders
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Table 19: Potential Areas for Industry Collaborations and Associations
SN Stakeholder type Potential areas of Collaborations and association for Imphal TC
► The Imphal TC can collaborate with cultivators in order to

promote the cultivation of medicinal and aromatic plants
during off-season.
► The TC can provide information to cultivators on modern
cultivation practices
► Cultivators can be made aware of Good Agricultural Practices
and Good Field Collection Practices in order to improve the
1 Cultivators quality of raw materials used in the industry
► Cultivators can also be made aware of sustainable practices
for environmental conservation.
► TC can become a partner for these cultivators for marketing
their crops
► Farmers can be provided with training from the TC for
undertaking primary processing activities such as cleaning,
sorting, grading, etc.
► Provide handholding in new product development.

Essential Oil ► Facilitate tie ups with MSMEs for production outsourcing etc.
2
Manufacturers ► Support suppliers to meet FMCG requirements.
► Provide tailor made training programmes to MSMEs
► The Imphal TC can tie up with agricultural and F&F research
institutes
Agricultural and ► The TC can collaborate with these institutes on the latest
3 F&F Research
developments in technology
Institutes
► TC can develop courses in collaboration with these institutes
based on the requirement of the industry
► Existing infrastructure of the food park in TCdistrict and of the
perfume park in Uttar Pradesh can be leveraged by the TC by
catering to the industry
Industrial ► TC can further collaborate with the perfume park and other
infrastructure clusters to share technology, produce, skilled labor etc.
4
Initiatives by
► TP can guide them in different high-end technologies for
Government
manufacturing and other process.
► These clusters will have easy access to market. CNM can
collaborate with them in future for different initiatives.
► TC can conduct various initiatives with industry associations

and MSME members
Industry
5 ► During these workshops, TC can educate about the details of
associations
different promotional policies and schemes of DC, MSME,
Govt. of India for benefit and sustainable growth of MSMEs.
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SN Stakeholder type Potential areas of Collaborations and association for Imphal TC
► TC can also provide consultancy services in the areas of

project management, lean manufacturing etc. to these
associations and MSME members.
7.7 Technology collaboration
The proposed TC at Imphal should venture into multiple new areas and to facilitate technology
transfer and improve market linkages. In this regard, the role of TP and a CNM has been planned
under TCSP.
► The TP will help identify and define globally competitive technological capabilities required in
the cluster and assist proposed TC in building this capability through planning and handholding
over a period of five years. The Technology Partner (TP) is required to enhance the capability
and service offerings of TCs such that they transform to become models of manufacturing
excellence for MSME. They need to become a trusted partner for MSMEs to learn how to attain
manufacturing excellence and attain associated excellence in skills development. The services
of the TCs include being exposed to the potential impact of new and relevant technologies,
trainings on use of technologies/equipment, providing access to cutting-edge equipment,
developing and testing new products and patenting. The key objectives of the TP include:
· In conjunction with all stakeholders of the TCSP identify and define the globally
competitive technological capability required by TCs, assist in their execution and
provide handholding during their roll out.
· Supporting the up-gradation of the existing TCs and establishment of new TCs for the
manufacturing sector
· Augment services being offered by the TCs with respect to identified technologies and
clusters with respect to training, production assistance (including optimization of
equipment utilization) and technical advisory, resulting in increase in revenues of TCs
focused at the manufacturing sector
· Support TCs to increase productivity and competitiveness of MSMEs by
§ Exposing them to existing and expected future technologies
§ Develop skills of the workers and students in the identified technologies and clusters
§ Offering advice/recommendations to MSMEs (clients) who directly or indirectly

supply essential oils and fragrance and flavours.
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All investment decisions (technological & other) and work prioritization in TCs must be
intrinsically connected with the market place and efficiently translate market needs to products
and services that (satisfy these needs), & will be enabled by technology and enriched by global
knowledge & expertise of the various stakeholders including the TP, empowered by global
networks and people.
► The CNM will be appointed for a period of five years to facilitate cluster and market development
to realise improved competitiveness. The CNM will work closely with the MSME clusters to
understand their needs and requirements and get small scale units / buyers involved in the
program. The CNM will strengthen market linkages of TC with the MSMEs in the cluster it serves,
trade and industry associations, academia, educational institutions, applied research
institutions, service providers, other government support institutions, workers and skill seekers.
Existing research institutions which could be potential collaborators for specific technologies are
– FFDC Kannauj, NMPB, CIMAP, IIIM, CCRAS, Central Agricultural University, etc. The CNM would
work towards the following key objectives:
· Increase of business opportunity for MSMEs through new market linkages.
· Increase competitiveness of supply chains of large firms by enhancing the quality,

reliability and productivity of MSME suppliers.
· Increase the number of MSMEs utilizing the services of TCs resulting in increase in
revenues of TCs
· Enhance competitiveness of the cluster business environment:
§ Increase access by MSMEs to a network of business development services (BDS)

which address needs not in the domain of TC expertise
§ Increase access by MSMEs to network of financial service providers
§ Increase awareness of opportunities in the public sector to contribute to a more

competitive business environment.
· Establish closer cooperation of key innovation stakeholders to enhance product and

process innovation. This would include linking the research agendas of applied research
and education institutes/organizations to industry and market requirements and
promoting joint research and development projects.
· Facilitate closer cooperation amongst skills development and labor market stakeholders
to increase the number of workers/ trainees from TCs finding long term employment to
improve their livelihood.
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· Establish a business model which ensures financial self-sustainability of the CNM as

before the end of the TCSP funding window.
All investment decisions (technological and other) and work prioritization in TCs must be
intrinsically connected with the market place and efficiently translate market needs to products and
services that (satisfy these needs), and will be enabled by technology and enriched by global
knowledge and expertise of the various stakeholders including the CNM, empowered by global
networks and people.
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Social and
Environmental
Safeguards
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8. Social and environmental safeguards

8.1 Socio-economic profile of district
► Composition of workforce: ‘Other Workers’ is the main constituent of the total workers in
the district accounting for 67.2 percent of the total workers. Cultivators and agricultural
labourers constitute 17.4 percent and 6 percent respectively.
► Sector composition: Manipur contributes 0.12% of India’s GDP. The state’s GSDP decreased
by 0.8% between 2013-14 and 2014-15. The chart below depicts the GSDP of Manipur at
current prices (in US$ billion):
Figure 14: Manipur GSDP at Current Prices
2.5 2.45 2.43

CAGR: 7.77%
2.24 2.21
2
2
1.68 1.74
1.6
1.5 1.36
1.3
1.15
1
0.5
0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
GSDP at current prices (US$ billion)
Source: IBEF
The State’s per capita GSDP increased from US$ 463.9 in 2004-05 to US$ 779.9 in 2014-15.
The CAGR was 5.33%.
The sector wise composition of domestic product in the district over the years has been given in
the following figure:
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Figure 15: Sectoral Composition of GSDP
120
100 CAGR
80 38.6
11.9%
56.2
60
40 36.7 2.6%
22.4
20
24.7 6.2% 21.4
0
2004-2005 2014-2015
Primary Secondary Tertiary
There has been a drastic shift in the sectoral contribution from secondary to tertiary sector. The
overall performance of the economy of the state over the years has been encouraging.
· In 2014-15, the tertiary sector contributed 56.2 per cent to the state’s GSDP at current
prices, followed by the secondary sector at 22.4 per cent. The tertiary sector grew at an
average rate of 11.9 per cent between 2004-05 and 2014-15; driven by trade, hotels, real
estate, finance, insurance, transport, communications and other services.
· The secondary sector grew at an average rate of 2.6 per cent during the period between
2004-05 and 2014-15. Its growth was mainly driven by construction and manufacturing.
· The primary sector grew at an average rate of 6.2 per cent between 2004-05 and 2014-
15.
► Education: Imphal West’s status in literacy was marked higher than the state average. The
literacy rate of the district is 86.1 percent, which is higher than the state literacy rate of 76.9
percent. The literacy rate of the Scheduled Tribes population is 89.8 percent and that of
Scheduled Caste Population is 81.1 percent. The table below provides details of the number of
educational institutions in the district:
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Table 20: Educational institutions in the district47
Education Number
Primary schools 212
Middle Schools 42
Secondary / senior secondary schools 15
Colleges 16
► Health: The healthcare service in the state is primarily under the government sector, although
there are a few private hospitals. The North East Region (excluding Assam) ranked 9th in India in
2008. The following table gives an overview of health infrastructure in the district during 2010-
11.
Table 21: Health infrastructure in the district48
SN Type Numbers
1. Allopathic hospitals 1
2. Beds per allopathic hospitals 1074
3. Ayurvedic hospitals 11
4. Beds per ayurvedic hospitals 50
5. Unani hospitals -
6. Community health centres 3
7. Primary health Centres 79
8. Dispensaries 205
9. Sub health centres 39
10. Private hospitals 15
► Tribal population: As per census 2011, Scheduled Tribes constitute only 4.6 per cent of the
total population in Imphal West, against the state average of 40.8 percent.
47
DC MSME brief industrial profile
48
DC MSME Brief Industrial Profile
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8.2 Social and environmental screening
Environmental and social screening enables the envisaged risks to be addressed at the very beginning
of designing and conceptualizing the implementation of the expansion or the green-field
development. The two main objectives of environmental and social screening are to:
► Enhance the environmental and social sustainability of a proposed project. This aspect of
screening focuses on the environmental and social benefits of a project.
► Identify and manage environmental and social risks that could be associated with a proposed
project. This aspect of screening focuses on the possible environmental and social costs of an
intervention and may point to the need for environmental and social review and management.
8.2.1 Social screening
As per World Bank guidelines TCSP has a two-tier approach49 to Social Screening Process (SSP) as
defined by World Bank which is as follows;
► No Social Screening Process (NSSP) is applicable if,

· Expansion/modernization of an existing TC takes place within its existing complex/campus
and/or within an established and operational sites such industrial estates, industrial parks,
export promotion zones etc.
· New TC is to be established within established and operational sites such as industrial estates,
industrial parks, export promotion zones etc.
► Full Social Screening Process (FSSP) is applicable if a new TC is to be established on land

acquired from private title holders and/or on Government land under different tenure systems
provided by the Government to establish a new Centre
► Indigenous People’s Social Screening Process (IPSSP) will be undertaken

· If a new TC is to be established in an area with high indigenous population comprising tribal
populace and
· If the area is covered by Govt. Policies and Plans such as Tribal Sub Plans and Panchayati Raj
Extension to Scheduled Areas
Further, Resettlement Policy Framework (RPF) applies to all components of Technology Centre
Systems Program that requires acquisition of private land and transfer of Government/public land
and that are likely to have adverse social impact including involuntary resettlement.
49
As per TCSP Environmental management framework - Draft (9 December 2013), MoMSME
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In context of Imphal TC;
► The identified site for the proposed TC at Imphal
· Land has been allocated by Government of Manipur for a period of 90 years to O/o DC-
MSME for the development of the TC by O/o DC-MSME.
· Declaration has been received from the state government to go ahead with the TC
development.
· Clearances received from the department for being free from any kind of encumbrances
and squatter settlements. Further during site visit by PMU consultants the same has been
verified (Social screening documents in respect of land is attached in Annexure 19.1).
► The allocated site for the proposed new TC at Imphal is at the Nilakuthi Food Park. So, FSSP
would not be applicable as ‘the land for the establishment of the TC is not acquired from any
private title holders and/or on Government land under different tenure systems’.
► Hence, in this case NSSP will be applicable since the new TC is to be established within an
established and operational site of an industrial estate,
Also, the proposed location of the TC is not established in an area with high indigenous
population comprising tribal populace and the area is not even covered by any Govt. Policies
and Plans such as Tribal Sub Plans and Panchayati Raj Extension to Scheduled Areas. Hence,
this rules out the undertaking of IPSSP.
The responsibilities related to social management will ultimately reside with the respective TC. The
PMU will facilitate, support the implementation of the Social Management Plans and prepare a six-
monthly report on all aspects of Resettlement Policy Framework and Process.
The detailed social screening certificate can be found in Annexure 19.1.
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8.2.2 Environmental screening
TCs are like mini industries; hence planning, development and management of the TCs involve several
critical environmental, health and safety obligations. Good environment practices and processes are
required to be an integral part of any expansion or development of any green-field TC. The foremost
and most essential stage of environment management is to conduct an environmental screening that
highlights appropriate level and type of Environmental aspects and their likely associated
environmental impact. The screening process aims to quickly identify those projects in which no
potential environmental and social issues exist, so that only those with potential environmental and
social implications will undergo a more detailed screening process. As a consequence, the outcome
of the screening process will be a categorization of the project into one or more of the following
categories:
► No further action is needed, either because no significant environmental impact and risks were
identified, or because sufficient environmental review has already been conducted and
environmental management recommendations have been incorporated into the project;
► Environmental sustainability elements need to be integrated into project design because there are
possible environmental and social benefits, impact, and/or risks associated with the project (or a
project component) but these are limited in nature, predominantly indirect or very long-term and
so extremely difficult or impossible to directly identify and assess.
► Further environmental and social review and management is needed because potential
environmental and social impact or risks are associated with the project (or a project component)
and it is possible to identify these with a reasonable degree of certainty. In some cases,
determining the significance of these impact or risks will require environmental and social
assessment which, in turn, will lead to the identification of specific environmental and social
management measures that need to be incorporated into the project.
The methodology for screening includes desk study, site visit and study of available literature.
► Desk study involves collection and review of the secondary data available in the public domain.
This may involve the seismic activity of the area where new TC is proposed, soil type, land use
pattern, etc. This will enable one to decide the methodology and level of Environment assessment
and distributing the responsibility amongst the team members.
► Site visit/s is/are conducted to collect first hand data/information about the new site. This
enables a cross check of the secondary data available during the desk review and assessing the
likely environmental aspects and health and safety hazards. Also, this involves interaction with
different stakeholder in the region to gauge any possibility of conflict related to TC.
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During the study phase the team conducted a site visit and held discussions with Manipur Department
of Industries and Commerce officials. Based on the discussion, environmental screening was
conducted for the site and has been attached in Annexure 19.2.
The site (approximate area of 5 acres) is located within designated industrial area called as
Nilakuthi Food Tech Park in Imphal East district and is located adjacent to the National Highway 39.
The food tech park is located approximately 8 km north of Imphal city. The site consists of two
parcels of land, 2.3 acres (“Main building”) and 3.0 acres (“Hostel Site”) respectively. The two
portions are at approximately 300 m apart. The site was vacant and unused historically.
The Main Building is located in the eastern portion of the food tech park and consists of a built up
southern portion (consisting of 2 floors) of the land which is planned to be developed as the
processing, quality control laboratory and training classrooms; followed by a vacant portion to the
north. The building was inaugurated in April 2016 and was unused during the visit. The site was flat
and sloped towards south. No trees were observed on the site. The Hostel site is located in the
south western portion of the Food Tech Park and was vacant during the visit. It is planned to be
developed as the residential complex for students and faculty. The land was flat and devoid of any
vegetation.
During the field visit, two units i.e, M/s Likla water and M/s Balaji flour mills were operational within
the food tech park. Other facilities within the food tech park have been allocated but not
operational. Imphal river flows approximately 50 m east of the Food Tech Park and forest orchid
preservation centre is located approximately 150 m east of eastern portion of the Food Tech Park.
The water at the site shall be supplied by the municipality as per the discussion with the site
representatives. As observed during the site visit, Industrial Corporation has installed an overhead
tank to cater to the upcoming industries. As the operations of the tool rooms are not water
intensive, it will not put additional pressure on water source. No clearance will be required in
construction of the TC. No sources of air and noise emissions were recorded during the visit.
Further, the site did not involve chemical handling.
Identified environmental concerns and mitigation

The following potential environmental concerns were observed on/in the vicinity of the site:
► Location of forest are at an aerial distance of 150m to the Food Tech Park; due care should
be taken during construction phase;
► Imphal River is adjacent to the boundary of Food Tech Park. Boundary walls were observed
to be constructed throughout the food park and the water level was approximately 10m
lower than the ground level during site visit. No instances of floods were recorded in the
area. Therefore flooding is not envisaged as a concern on the site; and
► A centralised STP is being established in the western portion of the site. The treated STP
water is planned for being recycled on the Site. Further, based on the discussions with the
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site Representatives, a centralised ETP is also planned for handling the waste water within
the Food Tech Park. Therefore, the site plans to implement zero discharge on the site,
avoiding discharge of effluents into the Imphal River.
Mitigation measures as outlined in the Environmental Management Framework (EMF) needs to be
adopted during construction of TC to avoid any affect to the receptors. The construction design of
the TC should incorporate the factors for earthquake resilience.
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8.3 Gender equity and social inclusion strategy
Gender, Equity and Social Inclusion Plan (GESIP) is an important aspect of the social management
framework. TCSP also aims to create more choices for young people entering labour force (including
women and those who belong to vulnerable sections of society) in terms of providing opportunities
for hands-on-technical skills development at varying levels and types through TCs. This is in
accordance with Government of India’s focus on inclusive growth focusing on poverty reduction and
group equality and also with World Bank’s Country Partnership Strategy with emphasis on
engagement, transformation and inclusion.
GESIP will be formulated for the proposed Imphal TC, during its operational phase which would not
only be an outcome of the participatory process but also be rooted in the national and state policies
for gender and social inclusion. Areas to be considered while preparing GESIP will also be in line with
the RFD of the programme and would comprise the following (but not limited to):
► Criteria for admission into vocational education and training for skills development
► Increased opportunities for employment to women trainees
► Timings of training
► Ease of Location of TC
► User friendly campus infrastructure esp. for differently abled sections. While developing the
infrastructure for training and production sections, special care would be taken to include
facilities for comfort/ ease of access for disabled persons such as;
· Ramp for wheelchairs
· Elevators
· Toilets for disabled
· Parking space
► No. of women rest rooms
► Training Aids and infrastructure
► Any other component
The PMU will prepare and monitor the strategy to help with the preparation and implementation of a
GESIP with particular emphasis on inclusion of young women as well as those who belong to weaker
and underprivileged sections of society. For example, those who belong to SC/STs, backward castes,
minorities and those who are differently abled. Good practices coming out of the GESIP will be
documented and replicated/scaled up further in new TCs.
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GESIP Strategy roadmap (Suggestive)
► Develop a module/ guidance notes for preparing TC specific GESIPs covering the following
aspects:
· Gender gaps
· Importance of gender
· Identification of gender specific issues and constraints that hinder the implementation
of GESIP (human capital, access to information, access to finance, institutional
factors, socio-cultural norms, structural factors, political/ legal)
· Use of gender-disaggregated data to analyse the business environment
· Identify communication channels to reach intended program beneficiaries
· Useful links and tools
· Case studies/ best practices
· Core questions and indicators
► Capacity building of TC focal points identified to work on GESIP. Analysis of existing pool
of potential trainees and their eligibility in terms of gender and social inclusion and in terms
of eligibility criteria as set out in national and State policies
► Hand holding support for planning and implementing GESIP
► Setting up institutional arrangements at TC level for transparent and accountable

implementation and monitoring of GESIP based, among others, on specific and measurable
indicators. Develop reporting and monitoring formats to assess progress every 6 months
► Organize and facilitate monthly meetings (for 6 months) for GESIP coordinators to identify
issues and best practices and synthesize learning’s’ within and across sectors
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8.4 Sample monitoring and reporting template
The monitoring of environmental parameters would be undertaken on quarterly basis. The

responsibility of the same would lie with the concerned TC and a copy of the consolidated
performance will be sent to the O/o DC MSME for their records and recommendations. The suggestive
template for monitoring and reporting for the same to be adopted by the TC’s is given below. Further,
during operation and maintenance of the TC, a number of potential EHS impact may be expected
based on the kind of activities undertaken. These possible aspects are delineated in the EHS section
of this DPR.
Table 22: Sample monitoring and reporting template
Frequency of monitoring and

SN Parameter
reporting
1 Water consumption Quarterly
2 Water Cess Report Quarterly
3 Energy consumption Quarterly
4 Waste generation and disposal Quarterly
- Municipal Solid Waste
- Hazardous waste
- Non-hazardous waste
- Other categories
5 Safety records Quarterly
Near Misses
First Aid cases
6 Training Quarterly
No of students and other trained
7 Air pollution and Noise pollution 6-monthly
8 Internal audit report Quarterly
9 Update of legal register 6-monthly
Page 132 of 238

Clearances Required
and Respective
Authorities
Page 133 of 238

9. Clearances required and respective authorities
The proposed TC at Imphal would include development of physical infrastructure including facilities
like production, training, administration, hostel, canteen, utilities etc. keeping in view the long-term
sustainability. The same would require clearances at different levels during construction such as
approval of layout plan, environmental clearance, electricity and water supply connection, health and
safety clearance and other associated clearances. Obtaining these clearances would be crucial for
timely completion of the project and therefore needs to be planned well in advance. The following
table gives indicative details of the various clearances along with the respective approving
authorities. However, considering that land has already been allotted to O/o DC-MSME for
development of TC, some of these regulations may not be applicable.
Manipur has a single-window clearance system for establishment of industries. Thus, obtaining all
clearances typically takes one month.
Table 23: Clearances required and respective authorities50
SN Required clearance/ approvals51 Department /agency
1. Registration under VAT Act Commercial Taxes Department
2. Registration under CST Act Commercial Taxes Department
3. Tax Clearance Certificate Commercial Taxes Department
Land conversion - Conversion of

4. Revenue Department
land use
5. Land Allotment Revenue Department
Allotment of plots in Industrial Manipur Industrial Development Corporation
6.
Areas Limited (MANIDCO)
Issue of NOC to the authority
Manipur Industrial Development Corporation
7. concerned regarding conversion
Limited (MANIDCO)
of land use
Environmental Clearance
Manipur Pollution Control Board (MPCB) /
8. (Consent of Air and Water
Department of Environment and Forests
Pollution)
9. Clearance for Chemical Hazard Commerce & Industries Department
Electricity Department, Government of
10. Electricity Connection
Manipur / The Joint Electricity Regulatory
50
Source: IBEF
51
Indicative list of clearances/ approvals
Page 134 of 238

SN Required clearance/ approvals51 Department /agency
Commission for the States of Manipur and

Mizoram (JERC)
11. Water connection Public Works Department, Manipur
12. Fire safety Fire Service Department
Approval of place and for
Directorate of Commerce and Industries,
13. permission to construct building
Manipur / Public Works Department, Manipur
under the Factories Act)
Approval of factory layout plan Labour and Employment Department –

14.
under factories Act, 1948 Factories and Boilers Inspectorate
15. License for running the factory Labour and Employment Department
Registration of shops and Labour and Employment Department - Labour

16.
commercial establishments Department
Permission to establishments
Labour and Employment Department - Labour
17. having more than 50 labours
Department
under Industrial Employment
18. Lift Public Works Department
19. Borewell Central Ground Water Authority
20. Society registration Indian societies registration act 1960
Page 135 of 238

Manpower and
Human Resource
Development
Page 136 of 238

10. Manpower and human resource development
The success of an institute or an organization majorly depends upon the skill set and experienced
human resource available with them. Hence, it’s planning, recruitment and development is one of the
most important aspects while designing a new Technology Centre. As a part of the study we have
analysed organizational structures of some of the existing Technology Centres to understand the
major functional areas, number and level of employees, contractual staff and other related aspects.
In continuation, we have also discussed the same with O/o DC-MSME and some of the heads/GMs of
the existing TCs.
10.1 Proposed organisation structure
While analysing the existing organizational structure of FFDC Kannauj and designing the new one
from the Imphal TC, we have taken some considerations into account which have been discussed and
validated with the O/o DC-MSME. Some of the key considerations are as below:
► The total sanctioned strength of the Imphal TC would be 18 employees.

► In the proposed organizational structure for Imphal TC, the main revenue streams are
Production, Quality Assurance, Consulting and Training. Production, Quality Assurance and
Consulting will be headed by a single Assistant Director, and the Training Department will also be
headed by an Assistant Director. The Assistant Directors would report directly to the Director /
Deputy Director.
► Contrary to the existing structure at FFDC Kannauj which has 7 levels, we have proposed only 5
levels. Below these levels, the resources will be hired as contractual employees on need basis.
► In the existing structure, Agro-Technology, Fragrance and Flavours, Quality Assurance, and
Chemicals are separate verticals with their own subsidiary employees. At the Imphal TC, given
the focus on training, improving cultivation, and essential oil extraction, it has been proposed
that the key departments would be Consulting, Production, Quality Assurance, and Training.
Consulting, Production and Quality Assurance would be under the same vertical, whereas
Training would have its individual employees. This has been proposed due to the heavy focus the
centre will have on training.
► A separate department has been proposed for Administration and Accounting. This will consist
of one Office Superintendent and one Accountant. There will also be two Office Assistants, who
will be assigned to tasks related to Production, Quality Assurance & Consulting and Training
respectively.
► To achieve the envisaged objectives of TCSP, equal focus should be given on all the three pillars
namely, production, training and business advisory. Consistent efforts will have to be made to
optimize the revenue from all these areas. With this is in mind, the two Scientific Officers assigned
to the Production, Quality Assurance and Consulting block would also focus on business
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incubation and consultancy services. These experts will be supported by the internal production
and QA team and external experts on need basis.
► The Director or Deputy Director will devote his/her significant time in marketing and sales. Thus,
no individual sales and marketing department has been proposed, given the expected volumes of
production and the ecosystem for marketing. Also, the departmental head will be responsible for
the sales and marketing efforts of the Production, Quality Assurance and Consulting
departments. Moreover, above all TCSP aims to hire Cluster Network Manager to facilitate all the
market linkages for the proposed TC. The role of CNM for marketing would be very crucial and it
will act as an additional arm of the marketing wing of the proposed TC. Considering all the above
factors into account, a marketing department has not been proposed for the proposed Imphal
TC.
► The scientific officers will be a part of the production, quality assurance & consulting and training
departments, and will be supported by technical assistants. The technical assistants will have an
added responsibility to support the maintenance of machines as well.
► The Assistant Director of Training would mainly be responsible for administration, planning,
quality control, issue of certificate to trainees, fee collection and others.
► While estimating the numbers we have considered the following considerations:
· In addition to the regular employees, the training department contractual faculty for
trainings conducted outside the TC and in the form of guest faculty.
· The requirement of staff for the house-keeping and security will be outsourced to a third
party agency on yearly contract basis.
Based on the considerations stated above, the organisational chart in figure 15 demonstrates the
target organizational structure to be achieved in 5 years (by 2020-21) from inception. However, we
have provided the figures till 2075-28 since we are estimating the revenue and expenditures for next
10 years.
As highlighted above, the proposed Technology Centre at Imphal will be divided into three functional
areas/departments for the purpose of staff allocation. These are:
► Production, Quality Assurance and Consulting

► Training
► Administration & Accounting
Production, Quality Assurance and Consulting will be clubbed into one division for the purpose of
efficient staff allocation. It is recommended that the Director and the Deputy Director divide these
areas/departments between them, depending on competency, work-load and previous experience.
Overall Deputy Director would be responsible for the management and financial health of the TC.
The chart consists of 4 levels in addition to the General Manager (GM) and the Deputy General
Manager (DGM).
Page 138 of 238

► The third level consists of Assistant Directors as the departmental heads of Production, Quality
Assurance & Consulting and Training. They will report directly to either the Director or the
Deputy Director, depending upon the division of departments within them.
► The fourth level will consist of Scientific Officers who will be supporting Assistant Directors in
their respective domains. But for admin and accounting department, as explained above there
will not be any staff at this level.
► The fifth level consists of Technical Assistants for the Production, Quality Assurance &
Consulting and the Training departments. In addition, it will consist of an Office Superintendent
and an Accountant in the Administration and Accounting Division.
► The final level consists of Office Assistants, who will be allocated to the Production, Quality
Assurance & Consulting and the Training departments.
The responsibilities of each position and qualifications required to fulfil roles are covered in the
following section. Hence, the recommended final organisational structure for the proposed TC is
based on experience from established MSME technology centres, discussions with O/o DC-MSME and
heads of some of the existing TCs, expert opinion and knowledge and experience with organisational
planning.
Table 24: Sanctioned strength of key resources
S. No. Designation Proposed Sanctioned Strength

1. Director 1
2. Deputy Director 1
Department
3. Production, Quality Assurance & Consulting 7
4. Training 7
5. Administration 2
Total 1852
In addition to the above sanctioned strength, we have recommended additional employees as

contractual employees. Based on the requirement, we have estimated around 15 contractual
employees (5 in training & 10 other employees) by end of FY 2028. The figure for number of
contractual employees have been arrived at by taking various factors into account namely – existing
employees in training and production, the number of courses vis-à-vis the number of trainees, trainee
to teacher ratio, projected revenue numbers over the years, number of shifts in production vis-à-vis
the utilization and others.
While considering the ratio for trainee to teacher, we have used the following assumptions after
discussion with existing GMs and O/o DC-MSME.
52
The details and basis of number of employees is provided in the next section
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§ Trainee to teacher ratio for theory classes – minimum 60:1; with theory classes conducted
for 20% of time
§ Trainee to teacher ratio for practical classes – minimum 20:1; with practical classes
conducted for 80% of time
After calculating the weighted average of the above ratios we got the overall trainee to teacher ratio
of 28:1. Post discussions, we have considered trainee to teacher ratio of 25:1 for calculating the
number of employees in the training department (regular and contractual faculty) keeping in mind
the employees who will be on leave at any given point of time.
Figure 16: Proposed organisation structure
10.2 Phase wise induction of human resources
As discussed in the above sections, the proposed TC will be have 18 employee as sanctioned strength
and the target structure will be achieved within 5 years from 2016-17. Therefore due care have been
taken during the study to phase the recruitment of employees. On the same lines, initially some
positions have been proposed to be vacant when establishing the organisational structure of the TC.
This has been proposed keeping in mind the time it will take to be fully operational. Vacant positions
will also create incentives for high performers to obtain higher positions when the time comes for
fulfilling these.
The phase wise estimated staffing over next few years as part of human resource planning has been
done through the identification and analysis of the various types of activities and skill sets required
for smooth and efficient functioning of the proposed TC. Multiple rounds of discussions with industry
experts, World Bank, O/o DC-MSME and heads of some of the existing MSME TCs have been
undertaken to arrive at the requirement of human resources needed to meet the business objectives
in the short and long term of the proposed TC.
Page 140 of 238

The following provides the details of recruitment in various phases over next few years. This phasing
is suggestive and can be modified based on the need and revenue generating capabilities of the TC
during operations. Some of the considerations which have been taken into account while
recommending the phasing of employees are as below:
► Year 2016-17: 3 staff members

§ The Director will be involved in project implementation and work out the strategy for training,
production, consultancy and marketing with the help of CNM and TP. He will also monitor the
progress of construction and procurement of machines etc. Director will also be responsible
for planning of recruitment of required manpower. In addition, the Director will oversee the
implementation of initial training programs (3 courses to be initiated in Phase I). In addition,
he will be responsible for getting statutory registrations like sales tax and PF, opening of TC’s
bank account, and recruitment of people.
§ Phase I training activities (3 courses) will commence during this period.
§ Scientific officer (training) will undertake development of study material for trainings,
demonstrations and field work. The scientific officer will also undertake quality and testing
activities during this time.
§ Technical assistant will support the scientific officers in undertaking demonstrations and field
work, as well as quality and testing activities.
► Year 2017-18: 4 staff-members

§ The structure will remain the same for the year 2017-18, as Phase I training activities
continue. However, an accountant will also be recruited.
§ Large scale construction and procurement of machinery will take place during this period,
and thus an accountant will be recruited in order to manage finances and accounts of the TC.
► Year 2018-19: 10 staff- members

§ A deputy director will be recruited in order to assist the director in managing the increased
activities of the TC. During this phase he / she will focus largely on production, quality
assessment, and consulting activities of the TC.
§ One Assistant Director will be recruited to oversee training activities.
§ Production will commence during this phase and hence more scientific officers, technical
assistants, and an office assistant will be recruited. The number of staff has been decided
based on estimated number of machines commissioned during this phase and number of
shifts in production.
§ More training activities will also take place. Further, consultancy activities will also
commence during this period.
§ There will be two scientific officers during this period – one to focus on training activities and
one to focus on production, quality assessment and testing activities. More office assistants
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will also be recruited. Two office assistants will be delegated for training activities, and two
for production, quality assurance and consultancy activities.
§ An office superintendent will also be recruited during this time to supervise the
administrative work.

§ As activities increase, two more Technical Assistants will be recruited in order to support the
increased volume in production.
§ Training activities will also increase, thus increasing the requirement for technical assistants
for practical training purposes.

§ An Assistant Director for Production will be hired during this phase, as production is expected
to increase by a large amount by this time. The Assistant Director will oversee all production
activities and assist in marketing of products.
§ An additional office assistant will also be hired to assist with the increased capacity of the TC

§ The proposed TC would be fully operational by this period with activities in production,
training, quality assurance and consultancy etc. Additional staff will be recruited for smooth
undertaking of the gradual increase in the activities across all the departments.
§ Production, training and consultancy activities will increase, thereby posing a requirement
for more scientific officers and technical assistants.
§ Thus, two more scientific officers and two more technical assistants will be recruited. They
will be divided to support training and production, quality testing & consultancy activities
§ The positions will be filled gradually as TC activity escalates and the manpower requirements
increase.
§ The tables below summarise the phasing of the organisational completion within each area;
Administration and Accounting, Training, and Production, Quality Assurance and
Consultancy. 2017 to 2027.
Page 142 of 238

Table 25: Summary of phase wise induction of resources

Year 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27
Full time employees

Total 3 4 10 12 14 18 18 18 18 18 18
Contractual employees
Total 0 0 2 2 4 4 5 5 5 5 5
Below tables depicts the hiring of number resources at each level within each department for every
year starting from 2016-17 to 2026-27. In the year 2021-22, the TC is recommended to hire the
complete sanctioned strength of 18 employees.
Table 26: Department wise induction of fulltime resources
Director
Year 16-17 17-18 18-19 19-20 20-21 21-22 26-27
Director 1 1 1 1 1 1 1
Total 1 1 1 1 1 1 1
Deputy Director
Year 16-17 17-18 18-19 19-20 20-21 21-22 26-27
Deputy Director 0 0 1 1 1 1 1
Total 0 0 1 1 1 1 1
Production, Testing and Quality Assurance
Year 16-17 17-18 18-19 19-20 20-21 21-22 26-27
Assistant Director 0 0 0 0 1 1 1
Scientific Officer 0 0 1 1 1 2 2
Technical
0 0 1 2 2 3 3
Assistants
Total 0 0 2 3 4 6 6
Training
Year 16-17 17-18 18-19 19-20 20-21 21-22 26-27
Assistant Director 0 0 1 1 1 1 1
Scientific Officer 1 1 1 1 1 2 2
Technical
1 1 1 2 2 3 3
Assistants
Total 2 2 3 4 4 6 6
Administration & Accounting
Year 16-17 17-18 18-19 19-20 20-21 21-22 26-27
Office
0 0 1 1 1 1 1
Superintendent
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Office Assistants 0 0 1 1 2 2 2
Accountant 0 1 1 1 1 1 1
Total 0 1 3 3 4 4 4
Page 144 of 238

10.3 Roles and responsibilities
While conducting the study, we had series of discussions with the O/o DC-MSME and some heads/GMs of existing MSME TCs on the prospective roles and
responsibilities of the employees for the Imphal TC. Below is summary of the suggestive roles and responsibilities (including the minimum qualification
levels) of the individual employees which can be referred to while recruiting.
Table 27: Roles and responsibilities of proposed positions
Profile/ Minimum Minimum

Other Skill set/ requirements Key Responsibilities
Designation Qualification Experience
► Over all responsible for the administration
► Experience in fragrance and flavours and financial health of the TC

M. Sc. (Chem./
Life Science / industry ► Key responsibility areas include (but not
Agriculture / ► Understandingof quality assurance
10 years in procedures for the sector limited to); Marketing, Administration, HR,
Director Equivalent) or
relevant field ► Experience in project implementation will Accounts, Production, Quality Assurance &
B. Tech (Chem.
Engg./Technolo be preferred
► Networking skills with industrial consultancy etc.
gy / Equivalent)
associations, key players, etc. ► Responsibility for achieving the target KPIs set
by the Governing Council
M. Sc. (Chem./
Life Science / ► Experience in fragrance and flavours
Agriculture / industry ► Head of Innovation and Development,
Equivalent) or 8 years in ► Understanding of quality assurance
Deputy Director
B. Tech (Chem. relevant field procedures for the sector Consultancy and Training
Engg,/ ► Experience in project implementation will
Technology / be preferred
Equivalent)
M. Sc. (Chem./
► AD Production, Testing, QA - Experience in ► Will be responsible for managing the day-to-
Assistant Life Science / 2 years in day operations of their respective divisions, i.e
fragrance and flavour industry, including
Director Agriculture / relevant field Training and Production, quality assurance
production, establishment of lab, quality
Equivalent) or and consultancy.
control, project implementation
B. Tech (Chem.
Page 145 of 238

Profile/ Minimum Minimum

Other Skill set/ requirements Key Responsibilities
Designation Qualification Experience
Engg,/ ► AD Training - Experience in fragrance and
Technology / flavour industry including training,
Equivalent) practical application of fragrance and
flavours, quality assurance, knowledge of
establishing business
M.Sc.(Chem./life ► Will be delegated to either Training division or
► Production,
testing, quality control – Production, quality assurance and consultancy
Science/Agricult
Experience in utilizing quality testing division
ure/ Bio-
equipment, familiar with equipment for ► In training division, will be responsible for
Scientific Tech/Equivalent 6 months in production of fragrances and flavours, lab undertaking training and developing training
Officer ) or B.Tech relevant field work, research and development materials, demonstrations and field work
(Chem.Engg./Te ► Training – developing study material, ► In production, quality assurance and
chnology/Equiva conducting training courses, consultancy, will undertake lab work and
lent) demonstrations, field work research, quality testing activities, etc.
► They will support the scientific officers on their
Unskilled day to day activities.
Technical ► Experience in doing lab work, using testing ► Will support in undertaking lab work, field
NA
Assistants workers equipment work, quality testing activities and
demonstrations
► Will be responsible for managing
Office Graduate in any ► Experience in human resource and admin administration and accounting, as well as
NA
Superintendent field work human resources
► Will be responsible for administrative tasks
Graduate in any such as typing letters, getting documents
Office Assistant NA ► Experience in admin work
field signed, packaging, etc.
► Will be responsible for bookkeeping and
M. Com., CA or ► Experience in accounting and Tax.
Accountant equivalent in 3 years accounting
► Should be familiar with latest accounting
accounting software ► Handling of cash, banking, etc.
Page 146 of 238

10.4 Governance structure
10.4.1 Selection of the Governance Model for the new TCs
All the existing 18 TCs have been set up under the Societies Registration Act, 1860. The management
of affairs mainly rest with the Governing Council constituted by MoMSME, Government of India with
the Additional Secretary and Development Commissioner of Ministry of Micro, Small and Medium
scale Enterprises (DC-MSME) acting as the President of the Society and Chairman of the Governing
Council (GC).
This arrangement has proved effective as most TCs have supported local MSMEs well and have
performed financially. Each TC has a separate society and has very decentralised authority and
governance structure. DC, MSME being chairman and other two members Director –Tool Room and
representative of IF-wing of MoMSME are common members in all 18 GCs.
During the study and preparation phase of this DPR, we analysed different governance models for
the new TCs. Under Indian law, there are three legal forms that exist for non-profit organisations.
Mainly two forms are relevant for the purpose of the TCSP Program.
► Society as per society Registration Act, 1860

► Section 25 companies as per Companies Act, 1956
The two forms mentioned above have distinguishing features as per their respective acts.
Table 28: Comparison of Society Registration Act and Companies Act
Features Registered Society No-for-profit Company u/s 25
Setting up and running Nominal Comparatively more than the

cost society & trust
Formation Simple Takes 2-3 months, required to
comply with provisions of
Companies Act
Jurisdiction Registrar of society Registrar of companies
Meetings Annual Meeting As per Law. Quite Extensive as per the
Governing Body meeting as per provision of Company Law
the rules of Society.
Governance Vests with governing body as per Vests with Board of directors &
the rules framed by them. Law management committee.
specifies no rules & regulation Specific provisions for quorum,
adoption, ratification and
compliance
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Features Registered Society No-for-profit Company u/s 25
Membership transfer Impossible Free or control as per desire

Statutory Regulations Limited Exhaustive
Transparency Transparent Fully Transparent
(As society act is not so (The Companies Law is quite
exhaustive requiring statutory exhaustive requires specific
compliance for each and every compliance in each activity of
step of business operation) business operation)
Perception commercial Less comfortable More comfortable
lenders
Interest of commercial Less secured, as Act doesn’t More secured, as exhaustive
lenders provide any rules regarding how provisions in companies act
the interest of lenders can be about how the interest of
settled in the case of bankruptcy lenders can be secured by
distributing the assets of the
company in case of liquidation
Accountability More (Can be established, if the More, (As per the statutory
rules, regulation and by-laws of regulations)
the Society are framed in manner
to fix accountabilities)
Financial Management & Best practices can be adopted Exhaustive provisions in
Disclosures through framing regulations. Companies Act providing for
However, Act doesn’t provide financial management and
anything specific on this disclosure policies
Modification of Objects Easy Legal Procedure Complicated legal procedure
Penalties Lesser Higher
External audits Subject to lesser audit Greater degree of control
requirement. As Act doesn’t through Auditing framework as
provide for various kind of audits per companies Act. E.g.
of the Society. However, Statutory Audit, tax audit, cost
generally the society provide for audit etc.
audit regulations and compliance
to audit observations as part of
their bye-laws and rules and
regulations
Basic Document Memorandum of Association Memorandum of Association
Articles of Association with rules Articles of Association
& regulations
Page 148 of 238

The Table above outlines difference in the two prominent governance structures. Generally,
Companies are construed as more reliable legal entity in the commercial world or to attract private
participants because the transparency inherits from the statute itself under which it is incorporated.
However, a society may also bring forward discipline by framing rules and regulations of the society
through the governing body. This fact together with the minimal cost of setting up and running and
simplicity in its formation makes the society a popular model in the case where purpose is not to
finance the cost of the project but optimise the cost and delays.
The existing 18 TCs formed as per society model have made it proven model because of the following
facts:
► Very clear cut authority flow and ownership by other GC members and GMs (as permanent
member secretary). It instils competition among individual TCs to excel.
► The Incentive schemes work better in small groups (individual TCs). It also allowed better
performing and surplus generating TCs to retain surplus fund and deploy them best suited
to them.
► Rules and regulation framed by the societies fix the accountability of various authorities in
organisation.
► Delegation of financial power has been developed which fix the authority of each of the
officer in management body.
► Well established system for procurement is being followed as per GoI guidelines and GFR,
2005
► Matters have been identified on which decision van be taken only by the Governing Body.
► Annual accounts are audited by the statutory auditors well in time and audit report is placed
and adopted by the Governing Body in its annual meeting
► Compliance to audit observations are strictly complied with and observed by the O/o DC-
MSME
Overall the present system is working well and at this stage raising fund is not the sole purpose, it is
recommended to continue with the societies for proposed Imphal TC with following few minor
modifications
► Governing council can make provision for more membership from OEMs
► Provision of membership from state technical University who controls most private
Engineering colleges
► One more sector expert in the GC
► GC usually meets once in six months only and it is suggested to have one executive
committee or advisory committee consisting of local MSME/Cluster association members,
sector experts and other stakeholders who can meet quarterly and can advise TCs and can
also be delegated with powers higher then GMs
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10.4.2 Composition of the Governing Council
As mentioned above, the proposed TC will be set up under the Societies Registration Act, 1860. The
management of affairs primarily rest with the Governing Council constituted by MoMSME,
Government of India with the Additional Secretary and Development Commissioner, Ministry of
Micro, Small and Medium Enterprises (DC-MSME) acting as the President of the Society and Chairman
of the Governing Council of each TC.
The Governing Council of TC will comprise four types of members as explained below:
Table 29: Governing Council of Imphal TC
Representation in the Governing Council Suggestive recommendations

(i) Ex-officio members
Representative from Government of ► Secretary, Industries
India ► Commissioner/Director,
► Development Commissioner, Ministry of MSME as Technical Education &
Chairman, Training
► Industrial Advisor or Director of TR or Program ► Director, FFDC Kannauj
Coordinator,
► Director DI-MSME of the respective States,
► Representative from Integrated Finance Wing of the
Ministry of MSME.
Representative from State Government

► Official from concerned industry department,
► Official from concerned department of technical
education/training.
(ii) Institutional members
► Department of Industries and
► Representative of state level industrial promotion body Commerce, Manipur
► Representative of association of small scale industries ► Member from Ministry of
► Representative of the local chambers of commerce and DoNER
industries/ Industry Promotion Institution/NSIC. ► MANIDCO representative
Contd. Contd.
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Representation in the Governing Council Suggestive recommendations
(iii) Professional and other members
► To be nominated by O/o DC-

► One expert representing the fields of finance & accounts/
MSME
law/management,
► To be identified
► One representative of OEM,
► One representative of major F&F manufacturer in the
region
► Representative for cultivators
Central Agricultural
► Representative from LBIs
University
► Representative of related University in the State
(iv) MD/Executive Director/GM/PD of the Society
On his appointment, the Executive Director or General

Manager of the Society shall automatically become ex-officio
member of the Governing Council during the tenure of his
office, as Member Secretary.
► Role of the governing council
The Governing Council will discharge such duties and responsibilities, exercise such powers and
undertake and carry out such activities as considers essential with a view to attain the aims and
objectives as per the Memorandum of Association of the Society, with particular reference to the
following;
· To prepare and execute plans and programmes for the establishment of the TC based on
the plan of operation and to carry on its administration and management after such
establishment.
· To prepare, consider and approve the policies and strategies of the Society and to
reconsider and amend the said policies and strategies whenever appropriate.
· To receive grants and contributions and to have custody of the funds of the society.
· To prepare, consider and approve the budget estimates of the society every year.
· To prepare and maintain accounts and other relevant records and annual statement of
accounts including the balance sheet of the society.
· To open, conduct and prescribe courses of study, training and research in tool management
and allied subjects.
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· To fix and receive such fees and other charges from persons undergoing training as may be
necessary.
· To prescribe rules and regulation for the admission of candidates to the various courses of
training.
· To lay down standards of proficiency to be demonstrated before the award of diplomas,
certificates and other distinctions to the trainees.
· To institute and award scholarships, prizes and medals.
· To provide for and supervise the residence, health, discipline and the well-being of the
trainees in the Society.
· To create subject to the provisions of Rule 68 supra technical, training, research,
administrative, ministerial and other posts under the Society and to make appointments
thereto on such terms and conditions as deemed appropriate.
· To co-operate with any other organisation in the matters of education, training,
management and allied subjects.
· To enter into arrangements for and on behalf of the society.
· To sue and defend all legal proceedings on behalf of the Society.
· To appoint committee or committees for the disposal of any business of the Society or for
advice in any matter pertaining to the Society.
· To delegate to such extent it may deem necessary any of its power to any officer or
committee of the Governing Council.
· To consider and pass such resolution on the Annual Report, the annual accounts and the
financial estimates of the Society as it thinks fit.
· To make, inform, adopt, amend, vary or rescind from time to time rules and by-laws for the
regulation of and for any purpose connected with the management and administration of
affairs of the Society and for the furtherance of its aims and objectives.
· To make, adopt, amend, vary or rescind from time to time rules and by-laws for
§ For the conduct of the business of the Governing Council and the committee(s) to
be appointed by it,
§ For delegation of its powers,
§ For fixing quorum.
· To sell, lease, mortgage or exchange and otherwise transfer all or any portion of the
properties of the Society.
· To establish a provident fund for the benefit of the employees of the Society.
· To perform such additional functions and to carry out such duties as may from time to time
be assigned to it by the Society.
· To establish procedure in respect of services and technical advice to be rendered to the
industry by the Society and the levy and collection of charges for the same.
· To delegate its powers as may be deemed fit and appropriate but not the powers for:
Page 152 of 238

§ Altering, extending or abridging the purposes of the TC within the meaning of the
Societies Registration Act, 1860.
§ Amalgamating the TC either wholly or partially with any other TC having similar aims
and objectives.
§ Altering, extending or abridging the Rules and Regulations of the TC within the
meaning of the Societies Registration Act, 1860.
§ Shifting the existing location or altering the capacity of the TC.
§ Making capital investment exceeding the approved budget.
§ Borrowing money except for working capital exceeding the approved budget.
§ Transferring by way of mortgage, pledge, hypothecation or otherwise any assets,
moveable or immovable, except as security for working capital.
§ Appointing bankers and auditors.
§ Generally anything extraordinary and of major importance.
► Roles and responsibilities of the member secretary (GM/PD/MD)

· Plan, direct, co-ordinate, organize and supervise day-to-day work of the society.
· Implement policies, strategies and such programs of the society and attend to all statutory
requirements imposed thereon.
· Prescribe the functions, duties and responsibilities for all officers and staff of the society,
give them appropriate instructions and exercise such supervision and disciplinary control
as may be necessary.
► Roles and responsibilities of the O/o DC-MSME in management of the TCs

· Support DC-MSME in executing the responsibilities as the Chairman of the Governing
Council of all TCs.
· Support in implementation of strategic projects and policies from the central to the TC
levels.
· Act as the nodal point of coordination between the TCs and the DC-MSME.
Page 153 of 238

Marketing Plan
Page 154 of 238

11. Marketing plan of Imphal TC
The marketing of Imphal TC would require specific actions in order engage with potential customers
and clients in the catchment area and across India. A series of activities is therefore required to be
planned for effective marketing of the Imphal TC to promote its business, product or services. The
broad suggestive framework for marketing of the Imphal TC would include the following;
Figure 17: Suggestive framework for marketing of TC
In line with the above suggestive framework, a detailed Go to Market plan of the proposed TC will be
prepared subsequently by the Cluster Network Manager (CNM) along with the GM and marketing team
of the TC. The role of CNM for marketing would be very crucial and will act as an additional arm of
the marketing wing of the proposed TC. It will further strengthen its market linkages with the MSMEs
in the cluster it serves. CNM will also market the TC within the trade and industry associations,
academia, educational institutions, applied research institutions, service providers, other
government support institutions, workers and skill seekers.
As part of the marketing initiative, CNM would work closely with MSME clusters in the region to
understand their needs and requirements and involve local players in the region. Based on the
observations, the marketing strategy of the TC would be customized targeting various focus groups
including cultivators, essential oil and fragrance manufacturers, and FMCG companies. Further, the
CNM would be part of the consolidation of the results and recommendations of the diagnostic into a
strategic plan for cluster development. The CNM would also represent the TC in various industry
oriented outreach programmes and workshops. This would help in two ways; promoting the TC and
understanding industry perspective and future areas of focus. The same will help to identify key areas
of focus for the TC and align the future marketing strategies accordingly.
Hence, the CNM would promote the TCs in among the newly developed partnerships for mutual
benefit around identified programmes / initiatives.
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The plan should clearly position the proposed TC’s marketing mix with respect to its four Ps – product,
price, place and promotion. The suggestive points which needs to be taken care while designing the
Go To Market Plan for the Imphal TC has been highlighted below:
Figure 18: Positioning of marketing mix for proposed TC
Product
Place Imphal TC
Price
Positionoing
Promotion
Product
A Fragrance and Flavour TC with focus cultivation of medicinal and aromatic plants and essential
oils is proposed to be developed at Imphal based on the adequate environment for MAPs. The
product and service offering of the proposed TC therefore has been carefully derived keeping in
view the existing gaps to address specific requirements of this sector. Further the shortlisted
specialisations and respective courses to be offered by the proposed TC have been done keeping
in view the shortage in the availability of required skill sets and technology requirements in the
industry.
There is currently only one other TC in the country which is focused on fragrance and flavour
development. There is thus a need to expand the reach in this sector. Given the abundance of
medicinal and aromatic plants in India, particularly in the North East, there is a need to tap into
this potential by providing skill development in cultivation and value addition methods. There is
great potential in the fragrance and flavour sector for the development of essential oils. The
proposed TC would thus provide training and services across the value chain, i.e. from cultivation
to manufacturing of essential oils, packaging and marketing. We have also proposed an
incubation centre for budding entrepreneurs. The centre would encourage trainees to start their
own ventures by providing necessary support like finance, machinery, availing benefits of
Government schemes, etc.
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The summary is provided below:
The key offerings of the proposed TC will be focused on improving cultivation techniques and
development of essential oils from medicinal and aromatic plants. This will include consultancy
services, processing and value addition, testing and quality assurance, packaging and marketing,
and training. Focus areas would include
§ Advanced cultivation techniques and agri-technology for cultivation of MAPs

§ Provision of equipment for processing and value addition such as distillation,
fractionation, etc.
§ Testing and quality assurance of essential oils
§ Provision of a packaging facility and marketing assistance of products
§ Long Term and Short Term Training programmes on cultivation, processing, quality
assurance and marketing of MAPs and essential oils
§ Support too trainees / budding entrepreneurs
§ Consultancy services in F&F development, process improvement, and cultivation support,
etc. This includes sale of planting materials such as tissue culture samples to farmers
Price
As per the study and discussions with officials of some the existing TC, the proposed TC should
adopt the cost plus pricing approach for its products and services during its initial years of
operation and thus ensuring operating profit for sustainability. Most of the existing MSME TCs
follow the cost plus pricing approach only for all of their products and services. The price of
courses is being kept at the same level of those at FFDC Kannauj (with appropriate deductions
made for food and accommodation charges)
As a differentiator from the existing MSME TCs, it is proposed that once the TC strengthens its
brand and credibility in the market it should gradually move towards market-based pricing with
defined margin levels (margin based costing). Then, the TC will have to work towards optimisation
of its processes and operations to sustain its margins in the competitive environment.
The above mentioned pricing models are suggestive and will depend on the detailed analysis while
preparing the Go To Market Plan with the support of the CNM
Promotion
Promotion of TCs products and services is one of the most important components of the Go To
Market Plan for a new set-up. Hence, below are some of the suggestive points which might be
considered while making the final Go To Market Plan for the proposed Imphal TC.
► Increasing visibility to external audience
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· Encourage and execute early communication and promotion of activities by TC which are
relevant to key external audiences including cultivators, industry, media, etc.
· Producing a steady, reliable stream of quality outbound communications that highlights;
§ Research innovations and technology evaluations coming from the TC and its
partnerships.
§ Special events and conferences hosted or supported by TC.
· Working with industry partners to identify projects for joint publicity.
· Develop Facebook/ LinkedIn/ Twitter/ YouTube presence to connect to students.
· Ensure current marketing message is being maintained with all social media platforms
administered by these TC.
► Public Awareness campaign
· Stakeholder such as cultivators may not have access to internet promotions, and thus can
be made aware of the activities of the TC through radio, television, and local newspaper
advertisements
· In-person information dissemination also needs to take place in order to inform and attract
local cultivators
► Engaging internal stakeholders
· Conduct media and website training on a regular basis for all interested faculty and staff.
· Leverage active partnerships with the industry and community, inviting departmental and
staff participation.
· Ensure department faculty and staff are informed of the progress of the TC with respect
to each goal.
► Other Activities
· Website: Develop a website showcasing all highlights of the TC.
· TC fast facts: Fast fact can be a two-page information sheets describing the highlights of
TC. It can be made available online and increase the visibility to external audiences.
· TC online email newsletters: Preparation and delivery of high-quality email newsletters
from TC to MSME units, associations and other partners with the latest research
announcements, news and more of engaging and interesting information to these external
audiences.
· High quality print promotions: High quality print promotions coordinated by TC
communications, which maintains the Imphal TC as a brand to be utilised in outreach
efforts.
· Industry tie-ups: Partner with Industries and other technical education and research
institutes to increase the visibility of TC. Explore opportunities to participate in
publications and other co-branding opportunities with these partners from time to time.
· Maintain consistent social media presence: Ensuring consistent, exciting messaging is
posted on active social media platforms including the TCs Facebook page, Twitter account,
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YouTube channel and others. Promote the presence of TC on these platforms to students,
alumni and supporters while acting as a social media hub for internal departments
Place
Imphal is located in North East India, which is seen as a hotspot for medicinal and aromatic plants.
In addition, the TC is coming up in a planned food park zone, and this can be leveraged while
preparing the detailed marketing plan to establish the proposed TC as a prominent TC catering to
the fragrance and flavour sector.
As a part of developing the go to market plan GM would work with the CNM to prepare a detailed
marketing plan keeping in view the focus areas of the TC. This team, with support from CNM, would
be responsible to conduct the suggestive activities as mentioned in the promotion component and
lead the marketing initiative for the TC.
In view of the above broad framework the following would be undertaken for marketing of the TC
during its inception to start with. It is proposed to keep aside an initial one time marketing budget for
completing most of the below mentioned activities through third party vendors:
Table 30: Suggestive marketing activities, ownership and timeline
Phases Activity Ownership Timeline

· Designing brochure of TC (through
outsourcing)
· Short video film of TC infrastructure and
Construction
Preparation of facilities available (through outsourcing- post Marketing
and Post
promotional completion of the infrastructure/construction) team, GM
construction
materials · Development of TC website (through and CNM
phase
outsourcing)
· Preparation of brochures and pamphlets in
local language
· Preparing list of industrial association bodies in
the Imphal catchment, district, state and across
the country.
· Preparing list of industries in consultation with
DIC. CNM and Construction
Pre marketing
· Shortlisting of perspective players’ with GM phase
activities
respect to product range and process.
· Design a brief questionnaire.
· Preparing list of technical education institutes
and agricultural research institutes
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· Send the brochure along with cover letter and
short questionnaire to the shortlisted units.
· Seek time from large industries and industry
body associations to give presentation on the
capability statement of Imphal TC with respect
to cultivation of MAPs and manufacturing of
essential oils.
· Send representatives to get the filled During
GM,
questionnaire or fill the questionnaire installation and
Manager
Targeting the circulated earlier. commissioning
Marketing,
MSME units · Analyse the questionnaires received with of machines
CNM and
respect to production, consultancy, training for
TP
requirements of units manufacturing
· Meeting the key units identified in the analysis
to further understand their needs with respect
to raw materials, essential oil extraction
technologies, etc.
· Organise as well as participate in industry
oriented outreach programmes/ seminars/
workshops/ boot camps etc.
FMCG companies are important because they
involve many industries including MSMEs in the
manufacturing of a product. The TC will plan for
targeting the same through the following;
· Take appointment and meet relevant FMCG
companies to understand their specific needs
GM,
with respect to raw materials, essential oils,
Manager During
Targeting etc.
Marketing, installation and
FMCG · Presentation on the capability statement of
CNM and commissioning
companies Imphal TC with respect to manufacturing of
TP
essential oils, etc.
· Get their vendor details and understand their
portfolio of product requirement at various
levels
· Plan to Increase product portfolio to cater to
the FMCGs and their vendors
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Contd. Contd. Contd.

Contd.
· Meet the principle/ HoD of the institutes and
present on the capability statement of Imphal
TC with respect to training infrastructure,
faculty, real time learning with on job learning
Targeting During
etc.
technical and Marketing installation and
· Seeking permission and presenting the same to
vocational team (GM) commissioning
final and pre final year students
training and CNM of machines
· Getting permission to display the brochure of
institutes and for training
TC on the notice board of these institutes.
high schools
· Organise as well as participate in industry
oriented outreach programmes/ seminars/
workshops/ boot camps etc.
Page 161 of 238

Quality System
Page 162 of 238

12. Quality system
The TC will facilitate compliance with the Voluntary Certification Scheme for Medicinal Plant Produce
which has been put into place by NMPB in collaboration with Quality Council of India (QCI). This
includes standards for:
► Good Agricultural Practices (GAP): GAP involves requirements on different aspects from site
selection to packaging storage and dispatch of produce for processing
► Good Field Collection Practices (GFCP): GFCP involves requirements on different aspects for
harvesting and post-harvest management of medicinal plants.
The new TC would further aim to obtain various process certificates to enhance its competitiveness
like;
Table 31: Indicative certifications of quality systems
Name of
Area Details
certification
ISO 9001 Quality ► This would help to monitor, control, and improve quality of the
Management TC
System ► It is a series of standards that define, establish, and maintain a
quality assurance system for manufacturing and service
industries
► ISO 9001 deals with the requirements that organizations
wishing to meet the standard must fulfil
ISO 14001 Environmental ► Will help to address various aspects of environmental
Management management of the TC
System ► It provides practical tools to identify and control environmental
impact and constantly improve their environmental
performance
► These standards call for analysis of the entire life cycle of a
product, from raw material to eventual disposal and focus on
awareness of the processes and procedures that can affect the
environment
ISO 29990 Learning ► For quality professional practice, performance and enhance
services for transparency
non-formal ► Allows for comparison on a worldwide basis of learning services,
education and and management standards in the field of non-formal learning
training
Page 163 of 238

Name of
Area Details
certification
ISO 50001 Energy ► Gives requirement for energy management systems
management ► Establishes framework for industrial plants; commercial,
systems institutional and government facilities and entire organisations
to manage energy usage
OHSAS Occupational ► Is an internationally-applied British Standard for occupational
18001 Health and health and safety management systems
Safety ► It provides for the elements of an effective safety management
standard system which can be integrated with other management
systems and help organizations achieve better occupational
health and safety performance and economic objectives
In addition, the TC will work towards obtaining NABL accreditation of its Testing and Quality
Assessment lab.
The TC will also adopt the 5S technique for process improvement to clean and organise its workspace
to improve the workflow. Further trainees will be trained and exposed to 5S process improvement
technique. This would require the TC to do the following;
· Sort: To de-clutter the workspace and prioritise tools and materials used frequently, the TC
will sort everything in the work area so that unnecessary items (tools, parts, equipment,
storage bins, etc) can be removed and either discarded or stored elsewhere.
· Straighten: This will involve creating storage solutions that would facilitate orderly work flow
of everything in the TC by placing more frequently used items for quick and easy access.
· Shine: This will require efforts in the initial phase involving painting and installing better
lighting to make the workspace clean and tidy. Further during ongoing activities at the TC,
the work space and equipment will be cleaned and restored to their proper place at the end
of each shift. Basic preventative maintenance tasks like tightening, oiling, restocking will also
be part of this. The workstation would then be ready for the next user (or the next day) and
the order created in the first two steps will be preserved.
· Standardize: The objective of the same would be to make everyone in the TC familiar about
the current steps in order to follow and establish expectations. TC would conduct training,
create documented procedures, work instructions, use visual guides, checklists, and/or
photos for easy understanding of any changes made. Standardised ways will increase
efficiency and be user friendly for TC employees and others.
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· Sustain: Sustaining the processes would be important to ensure that focus doesn’t drift away
from 5S. TC would adopt strategies like daily meetings, mini-audit and ongoing continuous
improvement efforts to sustain the 5s.
Page 165 of 238

Infrastructure and
Facilities
Page 166 of 238

13. Infrastructure and facilities
The infrastructure of the proposed TC at Imphal has been developed based on the requirements,
recommended norms, capacity data of the existing TCs capacity, discussions with key stakeholders
and the experience of the team in providing professional advice on similar projects. Leading practices
form international training institutes have also been considered. The TC will be built on area of around
5 acres and the layout will have following blocks with required infrastructure:
► Production Block: This block will house the production facility which will include machinery for
distillation, extraction, fractionation, stevia processing, honey processing and packaging
equipment. This block also will contain the testing and quality assurance facility which will
contain equipment for measuring essential oil content, physio-chemical analysis, instrumental
analysis, etc. The equipment in this block will also be utilized for practical training purposes.
Depending on the space required by the machines and equipment, the area for these activities
should be demarcated which would also include other facilities like toilets, washrooms and
change rooms, adequate space for mobility, clean drinking water in their vicinity etc.
► Training Block: This area will have classrooms, labs, conference hall, faculty rooms and
facilities for training / seminars/ workshops etc. It will be located near the production block for
easy access to practical training.
► Administrative Block: This block will have Director’s and Deputy Director’s Office and
secretariat. It will also house office and desk space of all management, professional staff,
administrative and support staff, and other amenities such as conference room with video
conferencing facility, etc.
► Utilities Block: The utilities block comprises of areas that will house main electrical meter,
VCBs, HT panel, distribution panel and power back up. The utilities block will also house water
pumps, purification plant and chilling plant, water treatment plant, etc. At a later stage it will
also house the bio-gas plant. The open areas around the building will also have some utilities
provision such as rain water harvesting pits and panels for the operation of external lighting.
Utility will also include sewage treatment plant at an appropriate location.
► Hostel and staff accommodation: The hostel blocks will comprise of accommodation for the
students (separate for males and females). The staff accommodation will be located near the
girls hostel. This will include accommodation for the Director, Deputy Director, Assistant
Directors, and rooms for Scientific Officers, Technical Assistants and other staff.
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► Open Areas: The open areas comprise of drive way, rain water harvesting pit and landscaped
areas including the facade and main entry of the TC. The size of the open area will depend on
the design strategy adopted by the CMC.
► Others: This will include canteen, parking, security room etc.
► Basic amenities: Apart from the above facilities the campus will have basic amenities with
provision for;
· Drinking water
· Toilets
· Dining room as a hygienic area and place away from the work environment for rest
breaks and the consumption of food
· Change rooms to enable employees to change (e.g. uniforms or dirty work clothing) with
privacy and security. Such facility helps to reduces employee exposure to and potential
spread of contaminating substances used in work processes
· Personal storage for the secure and clean storage of personal belongings or clothing,
lockable where necessary
· Immediate availability of doctors, health supervisors and ambulance and sufficient first
aid kits
· Fire safety with smoke alarms to protect people against death and injury from fires.
Providing fire safety awareness to employees and conduct fire drill from time to time
· Fire assembly area in case of fire or natural calamity
· Dustbins with proper colour coding in green for organic, yellow for glass, white for paper,
grey for metal, blue for plastic, red for hazardous products
The existing building of 370 square meters (300 sq meter built up area and 70 sq meter
circulation) will be utilized as the Administrative Block.
Table 32: Details of proposed infrastructure for Operations
Details Nos. Total Area (Sq. mt.)

Production Block 1660
Processing 1000
Utilities 200
Raw Material Stores 200
Lab Skill Process Room (for demonstrations) 100
Production Office (Cabins, Documentation & Others) 100
Toilet Block 60
Page 168 of 238


Training Block 1145
Placement Office 1 30
Manager Room 1 25
Reception & Counselling 1 50
Faculty Room 1 50
Library with e facility 1 300
Classrooms 4 300
Labs 5 330
Toilets 1 60
Admin Block 300
Director Office & Sect 30
Board Room 20
Dy Director Office 15
Assistant Director 2
Scientific Officer 4 60
Techincal Assistant 6
Office Assistants & Accounts 15
Reception Area 50
Maintenance 10
Pantry 10
Examination Control Office 30
IT Dept / Server Room 10
Toilet Block 50
Conference Rooms 300
Conference Hall 230
Toilet 40
Pantry 10
Store 10
UPS, Electrical, Fire Control Room 10
Others 605
Utilities Room 100
Security Room (incl toilet) 25
Entrance 10
Canteen (incl kitchen) 200
Staircase 40
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Boys common room 100
Girls common room 100
Bank Counter 10
Dispensary 10
Printing / Stationary 10
Circulation and stairs and walls (considered for Training
478.75
Block, Conference Rooms, and Other Facilities) @ 25%*
Total Area 4488.75
Existing Admin Building** -300
Total Area for Construction (Operations) 4188.75
*Circulation has been considered for the Training Block, Conference Rooms, and Other Facilities
(excluding Utilities Room, Security Room and Entrance).
**Existing building of 370 square meter (300 square meter of built up area and 70 square meter of
circulation) will be used as the Admin Block. Thus, this has been reduced from the total area for
construction. The figure below depicts the layout of the existing building:
Figure 19: Layout of Existing Building
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► Hostel and staff accommodation: The hostel block will comprise of accommodation for
students enrolled under fulltime courses along with the hostel warden. Based on discussions
with GMs of existing TCs, it has been estimated that a capacity for 20 boys and 20 girls should
be provided in the hostel. The hostel building has been planned to be G + 1 structures with
provision for further vertical expansion depending on future requirements. Part of the
ground floor of the hostel building will be reserved for use as hostel office, other common
facilities etc. The first floor will be developed as rooms for accommodation of students. In
addition, an Executive Hostel with a capacity of 4 people will also be developed in order to
provide accommodation for visiting faculty, industry members, etc. The details of proposed
hostel infrastructure have been given in the following table. Initially the staff quarters block
will be a G+2 structure with a provision of further expanding it vertically depending on future
requirements. A guest house will also be constructed.
Table 33: Details of proposed infrastructure for hostel
Trainees Number of Area per Total

Hostel Category Floors per trainees / trainees Area
Room occupants (sq. mt.) (sq. mt.)
Hostel No.1 Boys G+1 2 20 12 240
Hostel No.2 Girls G+1 2 20 15 300
Hostel No. 3 Executive G+1 1 4 320
Total 44 860
Note: All viable options will be studied to decide on the design of the proposed block for hostel and
staff quarters. The number of floors for these facility buildings and all other associated details can
be further finalised with the appointment of CMC for development of the campus for TC. Further, the
rooms have been proposed for 2 students each. However, adequate space has been provided to
increase this capacity to 3 if required.
Table 34: Details of proposed infrastructure for staff accommodation

GM Residence 1 170
DGM / Manager 1 110
Assistant Director 1 200
Scientific Officer 1 200
Staff 10 400
Circulation 220
Total 1300
Thus, the total area for staff quarters will be 1300 square meters, including circulation.
Page 171 of 238

Total Proposed Area for Accommodation (Hostel and Staff Accommodation)

Total Area (Sq.
Details
mt.)
Total Area for Hostel (incl. Circulation) 860
Total Area for Staff Accommodation (incl. Circulation) 1300
Total 2160
Total built up area for construction purposes includes total area for operations (excluding the Admin
Block, for which the existing building will be utilized), and the total area for accommodation of
students and staff. The table below provides details of the total built up area for construction
purposes (excluding existing building):
Table 35: Total built up area including circulation and stairs & walls
Total Area (Sq.

SN Particular
mtr.)
1. Infrastructure for Operations (incl. circulation) 4188.75
2. Infrastructure for Hostel and Staff Accommodation (incl. circulation) 2160
Total 6348.75
As per the details of proposed infrastructure given in above tables, the construction of the Imphal TC
will include development of 6348.75 square metre of built up area in total (after considering the
existing building as admin block).
Per square metre cost of construction has been estimated to be INR 35,000. Further, the tentative
cost for development of underground water tank, rain water harvesting system, storm water
drainage network, water treatment plant, sewage treatment plant, street lighting, development of
internal roads, landscaping and grey water treatment plant for entire campus has been estimated to
be around INR 500 lakhs. Further discussion has already been carried out for development of
boundary wall which is estimated to cost around INR 100 lakhs. The detail for development of
infrastructures is as follows;
Table 36: Cost for development of TC infrastructures
Area (sq Cost (in INR

SN Particular
mtrs) lakh)
1. Production Block 1660 581
2. Training Block 1145 400.75
3. Admin Block (Existing building to be used) 0 0
4. Conference Rooms 300 105
5. Others 605 211.75
6. Hostel and staff accommodation (incl. circulation) 2160 756
7. Circulation and Stairs & Walls for Operations 478.75 167.56
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Total cost of development of build-up area @ 35,000

6348.75 2222.06
per sq. mt. for 6348.75 sq. mt.
8. External Electrical, Plumbing, Sanitation, Landscaping,
Internal Roads, Lighting, Treatment Plants, Fire Fighting 500
etc.
9. Boundary Wall Construction Cost Estimation (900 ft) 100
10. Contingency @ 5% 141.10
Total 2963.16
Note: Figures may not match due to rounding
Thus, the total estimated cost of construction is INR 2963.16 lakh including contingency.
Further provisioning towards establishment of other associated infrastructure will be done for the
planned capacity and is listed in the following table;
Table 37: Details of other infrastructure
Unit Cost (INR Total Cost

SN Other Infrastructure Nos.
lakhs) (INR lakhs)
1. Office & Storage Furniture 30 0.5 15
2. Hostel Furniture 200 0.25 50
Canteen and Hostel Dining hall
20 0.6 12
3. furniture
4. Kitchen equipment 2 20 40
5. Other Office equipment 25 1 25
6. Laptop 5 0.6 3
7. Desktop 20 0.5 10
8. Photocopier cum printer 1 2 2
9. Vehicle 2 12.5 25
10. Preliminary and Pre-operative expenses 1 40 40
11. Boiler 1 1 1
12. Thermic Fluid Heater 1 7 7
13. DG Set (20 KV) 1 5 5
14. DG Set (50 KV) 1 7 7
15. Inverter 4 0.2 0.8
16. Others (Miscellaneous) 1 50 50
17. Subtotal 292.8
18. Contingency @ 5% 14.64
307.44
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Above all, the development of campus infrastructure will be done keeping the following guidelines
in mind;
► Campus Layout/ Plan: Campus layout is crucial for successful performance of the TC. At least
30% green area will be maintained and landscaping will be done to improve aesthetics of the
surrounding while maintaining habitats conductive to natural fauna. Also, efforts will be made to
conserve existing vegetation and other rich biodiversity in the premises as well as vicinity. Apart
from this, there will be the following considerations while planning the campus layout:
· Site drainage: Existing drainage pattern of the available site will be studied and the drainage
system required for the TC will be constructed in line with the drainage pattern. Storm water
drain will be constructed separately so as avoid mixing of the fresh and the waste water.
· Heat island effect: Site will be planned properly to mitigate the heat island effect (Thermal
gradient difference between developed and undeveloped areas) by following measures:
§ At least 40% of the non-roof impervious surfaces on the site (including parking lots and
walkways) will be shaded
§ Pavements and walkways should be painted in light colour (solar reflectance index >
0.5)
· Boundary: The campus will be provided with boundary wall in all the directions to avoid
encroachment, theft and safety.
· Trees will be planted in large numbers to provide natural shade in the open areas. This helps
to reduce the temperature on campus in comparison to the vicinity
· Efforts will be made to utilize natural light to the maximum possible extent and provision
should be made for natural ventilation
· Green building codes may be adopted while designing the building layout so as to ensure
following environmental safeguards;
§ Renewable energy in terms of solar water heater, solar panels, solar street light may
be used
§ LED/CFL lights will be used within the premises to reduce the energy consumption
§ Provisioning of water treatment and recycling facility to reduce water consumption
§ Water harvesting arrangement to recharge the ground water and/or reduce
dependency on ground water
§ Provisioning of waste management including practices to minimize waste generation,
etc.
· Criteria mentioned in the National building code will be followed so as to ensure that all the
safety precaution like escape routes/emergency exits, setting of machinery providing
appropriate working space, etc. is maintained
· Hazardous material like asbestos sheets should be avoided in any part of the structure
· Substitutes to natural resources will be encouraged in appropriate ratio so as to decrease
natural resource consumption while maintaining the required strength (example: Fly ash may
Page 174 of 238

be used in small percentage instead of cement for construction, composite material may be
used construction of doors instead of wood, etc.
· Provision of toilets for both men and women will be made in appropriate number so as to
ensure comfortable and hygienic working conditions
· Energy efficient products like 5 star rated air conditioner, refrigerator, energy efficient
motors, etc. will be used in the TC’s
► Detailed building plan preparation: The building design is crucial for sustainable performance of
the TCs. A number of factors including energy efficiency, materials of construction, natural light
and ventilation, insulating, etc. must be kept in mind in order to maintain eco-friendly operations.
Also, adherence to aspects related to safety like, resistant to earthquakes, proper evacuations,
etc. will ensure successful operations of the TC.
Page 175 of 238

► Construction management: Construction at the site involves a number of activities. These

activities may lead to certain EHS impact on the existing natural settings and therefore,
appropriate mitigation measures will be required to be put in place so as to minimize or avoid this
impact. A snapshot of the issues with the basic principles to be kept in mind during construction
is given in the EHS section of this DPR.
Expenditure pattern
Page 176 of 238

14. Expenditure pattern
14.1 Capital expenditure
Total capital expenditure to the tune of around INR 4,877 lakhs is envisaged for the setting up of new
TC at Imphal. Summary of the Capital Expenditure is provided as below:
Table 38: Capital expenditure
Capex Cost (INR Lakhs)

Production Machinery and equipment 1303
Training machines and equipment 45
Other infrastructure 307
Building and construction 2963
Pre-Operative Expenses 258
Total Capex including contingency 4877
The above mentioned Capital Expenditure includes pre-operative expenses to the tune of INR 258
lakhs which will be incurred towards consultancy fees, obtaining clearances and approvals.
14.1.1 Plant and machinery
Total expenditure on machines to the tune of around INR 1,348 lakhs is envisaged for the setting up
of new TC at Imphal.
Table 39: Plant & Machinery
Capex INR Lakhs

Total Plant and Machinery 1284
Contingency @ 5% of capex 64
Total Capex on P&M including contingency 1348
The capital cost estimate for the proposed modernisation project has been prepared jointly by O/o
DC-MSME and EY team based on inputs from the following:
► Discussions with GM of FFDC Kannauj
► Discussions with officials from Manipur Government
► Discussions with proposed staff for the TC
► Inputs from Office of DC MSME
► Inputs as per the World Bank Environment and Safety requirements
Page 177 of 238

14.1.2 Land & building cost
Imphal has around 5 acres of land available for setting up of the facility of the TC.
Table 40: Land & building cost
SN Cost (in
Land / Building Cost
INR lakh)
1. Cost of development of build-up area @ 35,000 per sq. mt. for 6348.75 sq.
2222.06
mt.
2. Underground water tank, rain water harvesting system, storm water
drainage network, water treatment plant, sewage treatment plant, street
600
lighting, development of internal roads, landscaping and grey water
treatment plant and boundary wall
3. Total 2822.06
4. Contingency @ 5% 141
5. Grand total 2963.06
14.2 Operating expenditure
The operating expenditure for the TC has been classified into variable operating expenditure and
fixed operating expenditure.
14.2.1 Variable operating expenditure
Variable operating expenditure has two key heads. Expenditure under each head has been identified
for the key income streams:
a) Raw materials and Consumables

► Raw materials for training
► Raw materials for process technology
► Raw materials for Quality Control
► Raw materials for Agro Technology
b) Utilities
► Electricity & Fuel
► Diesel for gen set
► Printing and stationary
► Miscellaneous
Page 178 of 238

Table 41: variable cost assumptions
Description Unit Norms

Variable operating cost
Raw material and consumables
RM for Training % of revenue from training 60%
RM for Process Technology % of revenue from PT 50%
RM for Quality Control % of revenue from QC 20%
RM for Agro Technology % of revenue from AT 50%
Utilities
Electricity and Fuel % of Revenue 7.0%
Diesel for Gen Set % of Revenue 3.0%
Printing and Stationary % of Revenue 1.0%
Miscellaneous % of Revenue 2.0%
14.2.2 Fixed Operating expenditure
Fixed operating expenditure has four key heads. Expenditure under each head has been identified for
the key income streams:
a) Salary and wages/ establishment expenses

The salary expenses include salary for employees of proposed TC at Imphal. There will be 18
employees on regular contract and ~ 5 will be on temporary contract/honorarium visiting.
b) Repairs and maintenance (R&M)

Cost of repair and maintenance has been calculated for
► Plant and machinery installed
R&M for plant and machinery has been taken as a percentage of plant cost in an operating
year.
► Buildings
R&M for plant and machinery has been taken as a percentage of building cost in an
operating year
c) Training expenses
Training expenses primarily comprise of expenses incurred for external faculty visiting to the TC
from time to time as part of Short term and Long term trainings. These expenses typically
include faculty fees, hotel and transportation.
Page 179 of 238

d) Other production and administration expenses

These include expenditure on heads like transportation/entry tax/ freight, Vehicle expenses,
Printing and stationery, traveling and conveyance, audit, consultancy, advertisement, publicity,
marketing, telephone, internet, bank charges, miscellaneous expenses.
e) Insurance of new plant and machinery

Insurance expense for new plant and machinery includes the insurance cost for the new
machinery to be installed. The same has been calculated as a percentage of the gross block of
new machines.
f) Marketing Expenses
Marketing expenses have been taken as fixed values for first year and second year onward
Table 42: Fixed Operating Cost assumptions
Description Unit Norms

Fixed Operating Cost
Detailed assumptions given in a
Salaries & Wages separate table
R&M (Plant & Mach) % of Plant 0.5%
R&M (Building) per year % of Building 1.0%
Training Expenses % of training revenue 10%
Other Prod. & Admin. Exps % of overall revenue 8%
Insurance cost (New P&M) % of P&M 0.5%
Marketing expenses (1st year) Rs. Lakhs p.a 25
Marketing expenses (2 year onward) Rs. Lakhs p.a 15
Page 180 of 238

► Manpower and salary cost
Manpower numbers have been designed in line with the expansion plan of the TC and ramp up of the production, training and consultancy. Manpower
salary numbers are in line with the salary structure of existing TCs
Table 43: Manpower and salary assumptions
Monthly salary
Designation Nos.
(INR)
Year 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28
Top Management
Director 80,000 1 1 1 1 1 1 1 1 1 1 1 1
Deputy Director 70,000 0 0 1 1 1 1 1 1 1 1 1 1
1 1 2 2 2 2 2 2 2 2 2 2
Management and Support Staff
Assistant Director 59,000 0 0 1 1 2 2 2 2 2 2 2 2
Scientific Officer 46,750 1 1 2 2 2 4 4 4 4 4 4 4
Technical Assistant 37,666 1 1 2 4 4 6 6 6 6 6 6 6
Office Superintendent 38,000 0 0 1 1 1 1 1 1 1 1 1 1
Office Assistants 28,000 0 0 1 1 2 2 2 2 2 2 2 2
Accountant 32,000 0 1 1 1 1 1 1 1 1 1 1 1
2 3 8 10 12 16 16 16 16 16 16 16
Contractual Employees
Training / Other 10,000 0 0 2 2 4 4 5 5 5 5 5 5
Page 181 of 238

Financial Analysis
Page 182 of 238

15. Financial analysis
15.1 Key assumptions
Project construction and commencement of operations
The project construction is expected to start in the financial year 2016-2017. It is assumed that, the
construction period and installation of machines shall be completed in 15 months. Full-scale
operations will commence at the end of the construction period of 15 months. The infrastructure
development will coincide with the arrival of machines to be able to start the operations as planned.
Table 44: Key assumptions
Start of Project 9-Sept-16 (2016-17)

Construction period (Months) 15
Commencement of operation, date 9-Dec-17
Number of years, useful life of machines and
10
equipment (as per depreciation rules)
Maximum days of operation in a year 300
15.1.1 Income assumptions
► Production
Table 45: Production assumptions
Estimated Machine
Machine Shift Hours
Rate/Hour*
Process Technology and Value Addition
1. Steam distillation (2 ton) 2500 1 8
2. Steam distillation (25 kg) 375 2 16
3. Solvent extraction (2 ton) 25000 1 8
4. Solvent extraction (25 kg) 562.5 2 16
7. Stevioside extraction line 98000 2 16
8. Honey processing unit 625 2 16
Quality Assessment
9. Gas Liquid chromatograph (Indigenous)* 700 1 8
10. Gas Liquid chromatograph (Imported) 700 1 8
Page 183 of 238

Estimated Machine
Machine Shift Hours
Rate/Hour*
11. Atomic absorption spectro Photometer 700 1 8
12. Colorimeter* 350 1 8
13. Conductivity Meter* 350 1 8
14. Rotary Shaker* 350 1 8
15. Flame Photometer* 350 1 8
16. LC MS/MS 6000 1 8
17. Polarimeter 350 1 8
18. Digital Polarimeter 350 1 8
19. pH Meter* 350 1 8
20. Refractometer 150 1 8
21. Digital Balance* 150 1 8
22. Specific Gravity Meter 200 1 8
23. Triple distillation water unit* 150 1 8
24. Computer 0 0 0
Agro Technology
25. Growth Chambers
26. Laminar Flow
27. pH Meter
28. Autoclave
29. B.O.D.
30. Refrigerator
31. -20 Deep freezer
32. Hot Air Oven
33. Electronic Balance Machine hour rate is not applicable for
34. Centrifuge agro-technology equipment. Estimated
revenue for his has been considered
35. Hot Plate after discussions with experts from other
36. Shaker TCs.
37. Homogeniser (50 Kg)

38. Oven
39. Hot plate
40. Magnetic stirrer
41. Pulveriser
42. Glassware, Plastic ware & Chemicals
43. Polyhouse
44. 1 time investment motherplants-
Packaging
Page 184 of 238

Estimated Machine
Machine Shift Hours
Rate/Hour*
45. Bottle Sealing Machine
Packaging mode for aromatic and medicinal
46.
plants Revenue from packaging has been
assumed at 5% of revenue from process
47. Container Sealing Machine
technology and value addition
48. Carton Sealing Machine
49. Computer/ Laptop
*These machines will be utilized for quality and testing activities during the construction period of
the project
It has been assumed that machines will operate at 60% of the installed capacity. Steviocide extraction
machine is assumed to operate at 90% of the installed capacity.
Machine utilisation Year

Construction Period – Y1* 2016-17 25% of 1st Year
Construction Period – Y2* 2017-18 25% of 1st Year
1st year of production 2018-19 25%
2nd year of production 2019-20 40%
3rd year of production 2020-21 60%
th
4 year of production 2021-22 70%
5th year of production 2022-23 90%
6th year of production 2023-24 100%
th
Year on increase in machine utilisation 7 year onwards 2024-25 10%
*During the construction phase, training and quality testing activities will take place. Only some
quality testing machines will be utilized. These include the machines highlighted in the Table above.
The revenue for these machines have been assumed at 25% of the 1 st year of full scale production
after the construction period.
Steviocide Extraction Revenue Assumptions:

► It is assumed that 2000 ton of raw material (stevia) will be produced in a year after the TC
achieved its ful capacity in 10th year
► The final processed stevia (steviocide) will be 13% of the raw material = 260000 kg
► Final processed stevia would be sold at Rs. 5,000 per kg. We have considered a conservative
pricing at INR 3150/kg
► Therefore, total revenue from stevia production = Rs. 82,00,00,000 in 10 th year
► Half of the revenue will go to the LBIs and rest will be with the TC. Therefore, revenue to the
TC from stevia = Rs. 41,00,00,000 in 10th year.
Page 185 of 238

► Training revenue assumptions
Table 46: Training revenue assumptions
No. of
Duration
SN Course Type Course name Fee per Student Batch size batches /
(days)
year
Kisan Gosthi 1 20 50 2
Cultivation processing & marketing of Aromatic Plants 5 3000 20 10
Secondary processing of Aromatic Plants 5 3500 20 10
Value addition of Aromatic Plant 5 3500 20 10
Quality assessment of Natural Fragrant Raw Material 5 3500 20 10
Final written / oral exam to award certificate in
Production of Natural Fragrant Raw Material *Not for revenue
Technology (on completion of above four courses) 1.5 purposes NA NA
Cultivation processing & marketing of Medicinal Plants 5 3000 20 10
1. Short Term Secondary processing of Medicinal Plants 5 3500 20 10
Value addition of Medicinal Plant 5 3500 20 10
Quality assessment of Herbal extracts 5 3500 20 10
Agarbatti, Dhoopbatti, Havansamgri & Perfumery 5 3500 20 10
Medicinal plant and related products 5 3500 20 10
aroma and related products 5 3000 20 10
Finance and Marketing Management 30 5000 20 12
CAD / CAM Training 30 3000 20 12
Certification Course in Aroma Technology and its
2. Medium Term
management ( 6 months) with University of Manipur 180 15000 20 2
Page 186 of 238

No. of
Duration
SN Course Type Course name Fee per Student Batch size batches /
(days)
year
Certification course in Medicinal plant extracts ( 6
months) with University of Manipur 180 15000 20 2
Instrumentation 180 15000 20 2
Introduction to Tissue culture and application of
BioTechnology 180 15000 20 2
Entrepreneurship & skill development PG Diploma in
3. Long Term Entrepreneurship & skill development PG Diploma in
Tissue culture and application of BioTechnology 360 30000 20 1
Page 187 of 238

► Consultancy revenue assumptions
Revenue from consultancy is expected to start in 1st year of operation i.e. 2018-19 when the TC is fully operational and all infrastructure is in place.
Table 47: Consultancy revenue assumptions
Number of Projects
S Revenue per
Consulting Areas Year 1 Year2 Year3 Year4 Year5 Year 6 Year 7 Year 8 Year 9 Year 10
N project
Supply of plant and
1 1,00,000 0 1 1 2 2 3 4 5 5 5
machinery
Installation of
2 1,00,000 1 2 3 4 5 5 5 5 5 5
Quality Control
Fragrance/ flavour
3 1,00,000 1 2 2 3 3 4 4 4 5 5
lab
Development of
4 Fragrance 5,00,000 0 1 1 2 2 3 3 4 4 5
Formulation
Development of
5 5,00,000 0 1 1 2 2 3 3 4 4 5
Flavour Formulation
Development of
6 standarization of 2,00,000 1 1 2 2 2 3 3 4 4 5
Process parameter
Page 188 of 238

15.1.2 Project cost and financing
The project construction will be undertaken in a phased manner. In the initial phase, equipment will
be procured to start basic training and testing activities. In the next year, i.e. FY 18, construction
activities will commence and more equipment will be procured. In the final phase, i.e. FY19,
construction and procurement of machinery will be completed and full-fledged TC activities will
commence.
Table 48: Project cost and financing
Project cost and phasing In lakhs

Particulars 2016-17 2017-18 2018-19
Project Cost 34 1146 3696
Total 4877
The Greenfield TC project will be funded by a grant from Government of India which would be sourced
through World Bank loan and equity funding from MoMSME.
Page 189 of 238

15.1.3 Other financial assumptions
Terminal value assumptions:

Discount rate 9.25%
Growth rate in perpetuity 5.0%
Cost of equity 9.25%
Repair & maintenance, (P&M) 0.5% of P & M

Repair & maintenance, (Building) 1.0% of Building
Insurance cost of new P&M (Post of Plant & machinery and
0.5%
commissioning) Building
Working Capital Assumptions

Margin Money % 100%
Cash in Hand Days 60
Accounts Receivables Days 90
Suppliers Credit (A/P) Days 30
Finished goods Storage Days 30
Inventories (RM, Consumables)
Finished goods Days 90
Training Days 90
Days in a year 300
Inflation (Salary etc) 10%
Depreciation Rates
Asset Class WDV Max Depn
Tangible Assets
Plant and machinery 4.75% 95.00%
Buildings & other infra 10.00% 95.00%
Vehicles 15.00% 95.00%
Furniture & fixture 10.00% 95.00%
IT hardware & software 60.00% 95.00%
Page 190 of 238

15.2 Working capital and cash flow statement
Overall net working capital requirement for the TC is expected to grow from about INR 359 lakhs in
2018-19 to INR 1792 lakhs by year 2025-26.
Figure 20: Net working capital requirement
Net Working Capital Requirement (INR. Lakhs)

2,000.0 1,792
1,800.0 1,628
1,600.0 1,427
1,400.0 1,281
In INR Lakhs
1,200.0 1,002
1,000.0 857
800.0 575
600.0 359
400.0
200.0 2.7
-
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
Figure 21: Cash flow closing balance
Cash Flow closing balance

6,000 5,445
5,000
4,230
4,000
In INR Lakhs
3,131
3,000
2,193
2,000
1,401
852
1,000
372
8 119
0
2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27
Page 191 of 238

Table 49: Working capital schedule
Working Capital Schedule

Years 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27
INR Lakhs
Raw Material & Consumable
Storages
R&M Consumables for Training

1.7 1.7 13 19 24 26 29 32 35 39 41
R&M Consumables for Process
Technology - - 124 199 298 347 447 496 546 601 661
R&M Consumables for Quality
Control 0.2 0.2 3 4 6 7 10 11 22 24 27
R&M Consumables for Agro
Technology 0.2 0.2 1 1 1 1 2 2 2 2 2
R&M Consumables for Packaging

- - 0 0 0 0 0 1 1 1 1
Accounts Receivables
1.3 1.3 265 426 637 746 956 1,066 1,224 1,348 1,481
Gross Working Capital

3.4 3.4 406 649 967 1,129 1,444 1,607 1,830 2,014 2,212
Suppliers Credit
0.7 0.7 47 74 110 128 163 180 202 222 244
Net Working Capital

2.7 2.7 359 575 857 1,002 1,281 1,427 1,628 1,792 1,968
Page 192 of 238

Table 50: Cash flow statement
Cash Flow
Years 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27
INR Lakhs
Income post Depreciation -37 -167 -358 -124 135 269 514 658 890 1,044 1,195
Add: Depreciation 16 143 509 451 400 355 315 279 248 221 196
Inflow from Grant/ Capital fund 34 1,146 3,696
Grant to balance -ve cash flows, if any 25 25 210
Total Cash Inflow 39 1,147 4,058 327 535 624 829 937 1,138 1,264 1,391
Investment in Assets 34 1,146 3,696
Net Change in WC 3 356 216 282 145 280 145 201 165 176
Total Cash Outflow 37 1,146 4,052 216 282 145 280 145 201 165 176
Opening Balance 2 2 8 119 372 852 1,401 2,193 3,131 4,230
Surplus/Deficit 2 1 5 111 253 480 550 792 937 1,099 1,215
Closing Balance (Cumulative) 2 2 8 119 372 852 1,401 2,193 3,131 4,230 5,445
Page 193 of 238

15.3 Income & expenditure statement
The income to the proposed centre from training and quality assurance will start accruing from year 2016-17. Basic training courses and quality testing
and assurance will take place during the first two years. Initially an income of INR 13.8 lakhs is expected in year 2016-17 and 2017-18. Once the overall
construction is complete, the TC revenue is expected to grow from INR 956.6 lakhs in 2018-19 to 4,709 lakhs by year 2025-26.
Table 51: Income and expenditure
Income and Expenditure
Year 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27
INR Lakhs
Income
Training Income 9.5 9.5 73.6 103.1 132.5 147.2 161.9 178.1 195.9 215.5 226.3
Production Income 4.3 4.3 879.0 1404.0 2103.6 2454.0 3153.6 3504.0 4029.6 4431.4 4873.4
Process Technology 827.3 1323.7 1985.6 2316.5 2978.4 3309.3 3640.2 4004.3 4404.7
Quality Assessment 2.8 2.8 44.1 70.6 105.8 123.5 158.8 176.4 370.4 407.5 448.2
Agro Technology 1.5 1.5 6.0 7.2 8.4 9.6 10.8 12.0 12.0 12.0 12.0
Packaging 1.6 2.5 3.8 4.4 5.7 6.3 7.0 7.7 8.4
Consultancy Income 4.0 17.0 20.0 33.0 34.0 48.0 49.0 62.0 63.0
Total Income 13.8 13.8 956.6 1524.1 2256.1 2634.3 3349.6 3730.2 4274.6 4709.0 5162.7
Expenditure
Variable Operating
expenditure
Raw materials 7.0 7.0 470.1 742.1 1098.7 1277.3 1625.1 1804.6 2019.7 2221.1 2436.1
RM for Training 5.7 5.7 44.2 61.8 79.5 88.3 97.2 106.9 117.6 129.3 135.8
Page 194 of 238

Year 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27
RM for Process
Technology 413.7 661.9 992.8 1158.3 1489.2 1654.7 1820.1 2002.1 2202.3
RM for Quality
Control 0.6 0.6 8.8 14.1 21.2 24.7 31.8 35.3 74.1 81.5 89.6
RM for Agro
Technology 0.8 0.8 3.0 3.6 4.2 4.8 5.4 6.0 6.0 6.0 6.0
RM for Packaging 0.4 0.7 1.0 1.2 1.6 1.7 1.9 2.1 2.3
Utilities 1.8 1.8 124.4 198.1 293.3 342.5 435.4 484.9 555.7 612.2 671.1
Electricity & Fuel 1.0 1.0 67.0 106.7 157.9 184.4 234.5 261.1 299.2 329.6 361.4
Diesel for Gen Set 0.4 0.4 28.7 45.7 67.7 79.0 100.5 111.9 128.2 141.3 154.9
Printing & Stationary 0.1 0.1 9.6 15.2 22.6 26.3 33.5 37.3 42.7 47.1 51.6
Miscellaneous 0.3 0.3 19.1 30.5 45.1 52.7 67.0 74.6 85.5 94.2 103.3
Variable Operating
expenditure 8.8 8.8 594.4 940.2 1392.0 1619.8 2060.5 2289.5 2575.4 2833.2 3107.3
Fixed Operating
Expenditure
Salary & Wages/
Establishment
expenses 22 26 59 69 81 112 124 137 151 166 182
Repairs and Maintenance 3 3 151 188 248 278 335 366 410 446 482
P&M 0.105 0.105 7 7 7 7 7 7 7 7 7
Buildings 1 1 31 31 31 31 31 31 31 31 31
Training Expenses 1.0 1.0 7 10 13 15 16 18 20 22 23
Page 195 of 238

Year 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27
Other Prdn. & Admin.

Exps 1 1 74 118 175 204 259 289 331 365 400
Marketing expenses 25 15 15 15 15 15 15 15 15
Insurance of new
machines 0.11 7 7 7 7 7 7 7 7 7
Fixed Operating
Expenditure 26 29 211 257 329 390 460 503 561 612 664
Total Expenditure 34.3 38.2 805.0 1196.8 1721.0 2010.0 2520.3 2792.8 3136.3 3444.8 3771.6
Income (Gross Margin) -20.5 -24.5 151.6 327.3 535.1 624.3 829.3 937.4 1138.3 1264.1 1391.0
Depreciation
16 143 509 451 400 355 315 279 248 221 196
Income post Depreciation
and Interest -37 -167 -358 -124 135 269 514 658 890 1,044 1,195
Income TAX
- - - - - - - - - - -
Income after TAX -37 -167 -358 -124 135 269 514 658 890 1,044 1,195
Page 196 of 238

15.4 Balance sheet
Table 52: Balance sheet

INR Lakhs
Balance Sheet
Years 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27
Liabilities
Capital fund
34 1,180 4,877 4,877 4,877 4,877 4,877 4,877 4,877 4,877 4,877
Capital for -ve cash flows

25 50 260 260 260 260 260 260 260 260 260
Reserves & Surplus

(37) (204) (561) (685) (550) (281) 234 891 1,782 2,825 4,020
Total
23 1,027 4,575 4,451 4,586 4,856 5,370 6,028 6,918 7,962 9,157
Assets
Fixed Assets
Gross Block
34 1,180 4,877 4,877 4,877 4,877 4,877 4,877 4,877 4,877 4,877
Less: Accumulated
Depreciation 16 159 668 1,119 1,519 1,874 2,189 2,469 2,717 2,937 3,133
Net Block
18 1,022 4,209 3,757 3,357 3,003 2,688 2,408 2,160 1,939 1,743
Current Assets
Cash
2 2 8 119 372 852 1,401 2,193 3,131 4,230 5,445
Page 197 of 238

Other Current Assets 1,792

3 2.7 359 574.7 857 1,001.6 1,281 1,426.5 1,628 .2 1,968
Total
23 1,027 4,575 4,451 4,586 4,856 5,370 6,028 6,918 7,962 9,157
During the operational period of the Imphal TC, the TC may utilise the accumulated depreciation towards upkeep, maintenance of existing machines or
purchase of new machines to offset any impact of change in technology.
Page 198 of 238

15.5 Profitability
Overall project profitability has been estimated considering phased investment in plant & machinery
and infrastructure. The full-fledged operations are expected to start from the year 2018-19. The
project IRR for a period of 12 years till 2027-28 is 4.8%.
Table 53: Profitability with investment plant & machinery
Project IRR 4.8%

Payback period >10 years
The project is expected to generate positive net free cash flows starting year 2019-20. However
equity of about INR 260 lakhs will have to be infused in first three years to balance the negative cash
flows.
Figure 22: Net free Cash flows and Cumulative Cash flows
Net free Cash flows

2,000
937 1,099 1,215
792
1,000 480 550
(57) (1,171) (3,901)111 253
0
(1,000)
(2,000)
(3,000)
(4,000)
(5,000)
1,000
Cumulative Cash flows
0
(1,000)
(2,000)
(3,000)
(4,000)
(5,000)
(6,000)
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15.6 Sensitivity analysis
Sensitivity analysis of Project IRR has been carried out with respect to the key project parameters.
► Project cost
► Construction period
► Revenue from Training
► Revenue from Finished Goods
► Revenue from Consultancy
The project IRR is most sensitive to changes in Production Revenue, followed by changes in project
cost, consultancy, and training revenue.
Production forms majority of revenue for the TC followed by consultancy and training. 5 percent
increase/decrease in production revenue increases / decreases the project IRR by about 2.91%.
5 percent increase/decrease in project cost decreases/ increases the project IRR by about 0.75%
5 percent increase/decrease in consulting revenue increases / decreases the project IRR by about
0.04%.
Training being the lowest contributor to revenue has the lowest impact on project sensitivity. 5
percent increase/decrease in production revenue increases / decreases the project IRR by about
0.01%.
Sensitivity of IRR to
Table 54: Sensitivity of IRR
Construction
period (Months)
15
Increase in Project -5% 5.6%
cost 0% 4.8%
5% 4.0%
10% 3.3%
Increase in
-7.5% 4.76% Increase in -10% -1.6%
Training revenue
-5% 4.76% Production -5% 1.8%
0% 4.78% revenue 0% 4.8%
5% 4.79% 5% 7.5%
10% 4.81% 10% 10.0%
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Increase in
-10% 4.7%
Consultancy
-5% 4.7%
Revenue
0% 4.8%
5% 4.8%
10% 4.8%
Page 201 of 238

Environment , Health
and Safety
Page 202 of 238

16. Environment, health and safety
16.1 Proposed Activities

The TC will be involved in production of fragrances and flavours via extraction process from plants.
The TC will have its own plantation of these plants and some raw materials will be sourced from
outside. Apart from this, TC will provide consultancy and training to smaller players and services
like testing and other value addition to the associated farmers.
16.2 Management
Effective management of EHS issues entails the inclusion of EHS considerations at various stages of
project implementation. An assessment of the proposed TC operations has been performed based
on the nature of operations and planned activities.
16.3 Planning and design

As per the environmental screening conducted for the Site on 16-17 th March, 2016, the TC is located
in an industrial zone earmarked for development of food park. The land has been allocated to MSME
and does not involve acquisition of land from private players. The Site does not have any trees or
structure on the site. There is no archaeological or cultural/heritage structure in the vicinity of the
site.
The potential environmental issues identified that effect the design of the facility was the presence
of Imphal river in the vicinity of the Site, and location of forest area at an aerial distance of 150
meters to the Foot Tech Park.
Table 55: Potential environmental issues during planning phase
Associated
Activity Mitigation measures
impact
Imphal river is adjacent to Floods ► Building structure will be made strong enough to
the boundary of Food resulting in sustain certain degree of natural calamities like
floods.
Tech park loss of
property
Location of the site in Damage to ► The Construction design of the TC should
incorporate the factors for earthquake resilience.
seismic zone property
16.4 Construction phase

The activities during the construction phase in this project have potential to cause some environment
impacts if they are not managed appropriately. As highlighted in the environmental screening report,
forest area is located at an aerial distance of 150m to the Food Tech Park; therefore due care should
be taken during construction phase of the project to avoid any damage to the flora and fauna of the
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area. Major issues associated with this phase include management of debris waste, the top soil, the
waste generated during the construction activities, the use and storage of diesel for the running of
D.G sets, the concrete mix plant and the labor camps at the construction site. Table 2 provides a
snapshot of various expected EHS issues along with and mitigation measures.
Page 204 of 238

Table 56: EHS issues during construction phase
Activity Associated impact Mitigation measures

Clearing of land (before initiating Loss of green cover ► Planning of the TC should be done in such a way so as to minimize the number of trees
construction work, clearing of the mango required to be cut at the site.
and coconut trees shall be carried out)
Excavation, drilling and levelling for the Air pollution ► Water sprinkling at regular intervals during excavation and drilling activities should be
construction of foundation and base of practiced to avoid generation of dust;
building and roads ► The excavated soil should not be stored in the direction of the wind. Also, the pile of
excavated soil should be covered to avoid dust; and
► Construction machinery should be properly maintained to minimize exhaust emissions.
Soil contamination ► In case fill material are required for the levelling and grading, soil testing can be
performed to ensure the quality of soil and avoid soil contamination.
Loss of Top soil ► The overburden, especially top soil, will be used for cultivation; and
► During levelling, gradation across the land (If any) will be reduced to the extent
possible.
Noise pollution ► Noise prone activities should be planned during day time and shall be avoided, to the
extent possible, during night time.
Occupational health ► Adequate personal protective equipment like safety helmets, face masks, safety
hazards shoes, safety goggles etc. should be provided for the safety of workers;
► The excavated area should be provided with a visible boundary (Usually created using
a tape and sticks) to ensure safety at site; and
► Training should be imparted to workers on occupational safety and technical aspects
of job undertaken by them.
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Disposal of debris and ► The waste and debris should be disposed of at an identified place preferably wasteland
other wastes and appropriate approval should be taken for the same from land owner or revenue
authorities;
► The waste disposal area should not be placed near the identified forest area to
minimise the impact on the surrounding forest area; and
► The disposal site would be at least 1000 meters away from the areas including notified
forest land, water bodies and productive lands.
Establishing labour camp (The labour Health Risks ► Contractor should provide garbage bins to all workers' accommodation for dumping
camps at the project site will be wastes regularly in a hygienic manner in the area;
temporary in nature) ► Awareness program shall be undertaken for the construction workers to make them
aware about diseases including AIDS;
► Adequate drinking water facilities should be provided in the temporary sheds of the
construction workers;
► First aid box would be provided at every construction campsite and under the charge
of a qualified person to provide first aid. Availability of such person should be ensured
at all time.
Water pollution and/ or ► Provision of separate mobile toilet facilities for men and women should be made. The
land contamination effluent from the toilets should be disposed in soak pits.
Movement of vehicles (Vehicle movement Air pollution ► All the vehicles entering the site should be asked to have updated PUC (Pollution under
shall prevail at the site to transfer the control) certificate;
material and workers at site. Apart from ► Trucks/dumpers will be covered by tarpaulin sheets during off site transportation of
this, third party vehicles delivering the friable construction materials and spoil;
► Maintenance of vehicles will be carried out regularly; and
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material and equipment shall also be ► Sprinkling of water will be practiced at the site.
there.) Water contamination ► Proper maintenance of vehicle will be carried out to avoid any leakage of oil or grease
and / or Soil into the Imphal river flowing nearby
contamination ► No effluents / construction waste should be disposed in the Imphal river / the forest
area in the vicinity.
Safety risks ► Vehicle speed will be restricted to 15km/hour at site; and
► Necessary safety trainings will be provided to the drivers.
Use of D.G set (D.G sets shall be used at Air pollution ► D.G should be optimally used with proper orientation and adequate stack height; and
site to provide electricity to labour ► Proper maintenance of the DG should be carried out on regular basis.
camps and construction activity) Noise pollution ► Acoustic enclosures should be provided with the D.G sets to minimize the noise levels.
Storage of diesel Soil contamination ► A covered area should be defined for storage of HSD with concrete flooring.
Safety risks ► The diesel storage area should not be in proximity of the labour camps; and
► Inflammable substance should not be allowed at the project site.
Handling of waste (During construction Land contamination ► Waste will be stored at designated place after segregation on the basis of category
phase there may be generation of both and Water (hazardous and non-hazardous);
hazardous and non-hazardous waste contamination ► Hazardous waste should be disposed of to the authorized vendors only; and
which needs to be carefully handled to ► A waste management plan should be chalked out to properly dispose the debris
ensure environment safeguard) generated from the site.
Safety risks ► Adequate PPE’s should be identified and provided to the workers at site.
Installation and operation of concrete Noise pollution ► Noise shielding will be used where practicable and fixed noise sources will be
mix plants and batching plants (In case, acoustically treated for example with silencers, acoustic louvers and enclosures; and
these are installed on temporary basis at
the project site)
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► Provision of make shift noise barriers near high noise generating equipment will be
made to minimize horizontal propagation of noise in case of residential area in the
vicinity.
Construction labour management Child labour and forced ► Provision of clause in contractor’s agreement will be made that bans child labour and
labour forced labour at project site;
► Adequate procedures to avoid or prevent hiring/entry of child labour at the project
site will be undertaken; and
► Random check will be undertaken at the site to confirm the enforcement.
Health and safety risks ► Temporary crèche facility will be provided in case of migrant labourers children
for children of workers residing in the camps to ensure safety.
Loss of green cover ► Fuel will be made available to construction workers for food preparation; and
► Construction workers will be warned not to cut and use the trees available on the
project site as fuel wood. Random checks will also be done to ensure same.
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16.5 Operation and maintenance
The operations at TC will majorly involve:
1. Production of fragrances
2. Quality assessment
3. Tissue culture
4. Packaging
The TC will be having its own plantation to be used as raw materials. The major EHS hazards that
need mitigation are:
1. Soil contamination due to use of solvents

2. Management of laboratory (tissue culture) waste
3. Chemical handling within the Site
4. Calibration of instruments
The operations should be managed so as to avoid any damage/contamination to Imphal river and
the forest in the vicinity of the Site. Effluents of the operations should be treated in designated
ETP and the sewage from the Site should be treated and recycled on site using the STP. No
wastes/ effluents should be discharged in the Imphal river/ forest area in the vicinity of the Site.
Table 57: Potential hazards during cultivation and processing

Plant cultivation Soil contamination ► Using organic manure for cultivation to the extent
due to use of possible
fertilizer ► Conducting regular monitoring of soil quality
Use of solvents for Land contamination ► Solvents should be kept in small quantities at the
extraction/ workstation.
laboratory Contact with eye ► Eye goggles may be provided to employees and
trainees in case there is a risk of splashing of solvent.
Skin reaction with ► Appropriate gloves must be provided to the operators
solvent and trainees handling the solvent
Use of D.G sets Noise pollution ► D.G sets with acoustic enclosures shall be purchased to
avoid noise pollution.
Land contamination ► Concrete flooring shall be provided under around the
DG and diesel storing area;
► Diesel day tanks shall be provided with secondary
containment to avoid any accidental oil spills; and
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► Diesel should be poured in D.G set using funnel to
avoid land contamination due to oil spillage
Air pollution ► Chimney with appropriate height shall be provided to
minimize air pollution and ensure compliance with the
legislation
Water contamination ► All the waste shall be stored under a closed shed with
due to leakage impermeable flooring so as to avoid contamination and
and/or spill over washing away of waste in nearby water stream or
ground water in case of rain
Generation of Soil/ water ► The waste generated should be segregated as
waste contamination hazardous, non-hazardous and organic waste;
► The hazardous waste (used solvent, oil residues)
should be stored in a designated closed shed with
impervious flooring and disposed to government
approved authority; and
► The non-hazardous waste including organic waste
should be used/ recycled as appropriate.
Generation of Land contamination ► Sewage treatment plant will be installed in the TC to
domestic effluent treat the domestic effluent released from the hostel
and the toilets in the TC;
► Water treated in the STP should be recycled in the
facility.
Canteen Fire incident ► Fire extinguishers should be provided in the canteen;
operations ► Cylinders should be regularly checked for leakage; and
► Hose pipes should be regularly replaced to avoid any
incident of leakage.
Land contamination ► Efforts should be made to reduce food waste; and
to due food waste ► Option of converting food waste into compost shall be
explored.
16.5.1 Testing and calibration activities

Testing and calibration will involve a range of activities. The following section provides some
expected activities during testing and its mitigation.
During the testing and calibration e-waste will be generated that should be disposed to an authorised
e-waste recycler.
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16.5.2 Maintenance of the TC

Some of the environment aspects and health and safety hazards which may commonly arise during
TC maintenance and due to negligence towards appropriate maintenance work in a TC, are
highlighted as follows:
Table 58: Potential hazards during O & M phase
Potential impact Recommendation for mitigation

Deterioration of ► A structural stability certificate would be taken from a chartered engineer
the structure over every 5 years;
the period of time ► Approvals would be taken for any change in the layout of the TC from the
factory inspector; and
► Regular maintenance and repair work shall be undertaken throughout the TC
over the period of time.
Fire risk ► Fire extinguishers shall be placed throughout the TC;
► Fire extinguishers will be checked for pressure on a regularbasis; and
► Electrical wiring in the premises would be regularly checked and repair
should be undertaken wherever required.
The protection of public health, safety and general welfare will also be ensured through adherence
to the building codes since these are related to the construction and occupancy of buildings and
structures.
16.6 Basic requirements for EHS management
The following section outlines the details of the essential measures to be undertaken for sound EHS
management within the TC;
► Storm water management;
► Fire risk management;
► Rain water harvesting, if practical;
► Sewage treatment;
► Ventilation system; and
► Monitoring of EHS performance.
16.6.1 Storm Water Management

Storm water includes any surface runoff and flows resulting from precipitation, drainage or
other sources. Typically, storm water runoff contains suspended sediments, metals,
petroleum hydrocarbons, Polycyclic Aromatic Hydrocarbons (PAHs), coliform, etc. Rapid
runoff, even of uncontaminated storm water, also degrades the quality of the receiving water
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by eroding streambeds and banks. In order to reduce the need for storm water treatment,
the following principles would be applied:
· Storm water would be separated from process and sanitary wastewater streams in order
to reduce the volume of wastewater to be treated prior to discharge;
· Surface runoff from process areas or potential sources of contamination should be
prevented;
· Where this approach is not practical, runoff from process and storage areas would be
segregated from potentially less contaminated runoff;
· Runoff from areas without potential sources of contamination would be minimized (e.g.
by minimizing the area of impermeable surfaces) and the peak discharge rate would be
reduced (e.g. by using vegetated swales and retention ponds);
· Where storm water treatment is deemed necessary to protect  the quality of receiving
water bodies, priority would be given to manage and treat the first flush of storm water
runoff where the majority of potential contaminants tend to be present;
· When water quality criteria allows, storm water would be managed as a resource, either
for groundwater recharge or for meeting water needs at the facility;
· Oil water separators and grease traps would be installed and maintained as appropriate
at refuelling facilities, workshops, parking areas, fuel storage and containment areas; and
· Sludge from storm water catchments or collection and treatment systems will contain
elevated levels of pollutants and would be disposed in compliance with local regulatory
requirements, in the absence of which disposal has to be consistent with protection of
public health and safety , and conservation and long term sustainability of water and land
resources.
16.6.2 Fire risk management

a) Fire alarm system
► Automatic Fire alarm system will be provided in all buildings of the campus excluding student
hostels and emergency staff quarters;
► The system will have appropriate provisioning of smoke detectors and beam detectors with
respect to the sensitivity and probability of fire;
► Fire alarm panels will be provided at appropriate locations with easy and convenient
accessibility for manual activation of alarm in case failure of automatic system;
► A control panel will be provided at control station with a repeater panel in security cabin to
activate, deactivate and reset the fire alarm system;
► The instrumentation, panels, sensors and equipment used will be of certified make confirming
to relevant standards; and
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► Smoke detectors and beam detectors will be installed above and below false ceiling as
applicable.
b) Firefighting system – overview

► Mapping of potential fire risk shall be done across TC and fire extinguishers (CO2 and powder
based) should be placed in relevant areas; and
► Maintenance of fire extinguishers shall be undertaken on regularly, as required.
16.6.3 Rain water harvesting

► The campus will be divided into 4 or 5 areas and the storm water from the roof top of each
building in each area will be collected in the specified area;
► The storm water outlets on building roofs will be checked for adequacy with respect to size
considering maximum rainfall intensity in past 100 years;
► Additional outlets will be provided to the building roof, in case the existing outlets are found
to be insufficient;
► The outlets will be provided with vertical down take pipes, which will be connected to the
existing underground storm water lines through nearby chambers;
► Suitable locations for ground water recharge pit will be identified in each area as mentioned
above;.
► Considering geology, ground water tables, applicable rules and regulations and available
space, ground water recharge pits with bore holes and pipes will be designed with adequate
capacity;
► The ground water recharge pits will be connected to the storm water line through nearest
chamber to fetch storm water (collected on roof) to the pit;
► Overflow will be provided to the ground water recharge pit at suitable level, to take off excess
water back to the storm water network and discharge off;
► The ground water recharge pits will be protected with fence around to prevent ingress of
people, animals etc; and
► Suitable provision will be made to cut off and on the flow to the ground water recharge pits.
16.6.4 Sewage treatment plant

► Sewage Treatment plant with integral effluent treatment will be provided for primary and
secondary treatment; and
► The treated effluent will be used for gardening and/or recycled for use in toilets to the extent
possible.
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16.6.5 Ventilation system
a) Internal buildings
► The TC premises will have provision for sufficient ventilation. This will be done keeping in
view the amount of space in the TC, number of people expected to occupy the space, type
and amount of machines/equipment, and overall size of the space. The designing will be done
keeping in view proper distribution of air for ventilation throughout all occupied spaces
across the TC;
► Natural ventilation - The premises will have adequate openings, such as doors, windows
and/or vent opening to clean environment. Roof vents would be placed wherever applicable
to reduce the reliance on air conditioning systems; and
► Air input, smoke exhaust will also be installed and maintained for proper ventilation.
b) UPS room
► Appropriately designed ventilation system will be provided to the UPS room;

► The ventilation system will mainly comprise of air conditioning units providing cold air at
lower temperature and exhaust system taking out hot air coming out of the UPS; and
► The system will be designed to maintain adequate temperature around the UPS equipment
as per manufacturer’s requirements/ specifications.
16.6.6 Monitoring
EHS monitoring programs would be undertaken to verify the effectiveness of prevention and control
strategies. The selected indicators should be representative of the most significant EHS aspects, and
the implementation of prevention and control strategies. The monitoring program would include;
► EHS inspection/Audits;
► Calibration of the equipment;
► Surveillance of the working environment; and
► Surveillance of workers health.
Page 214 of 238

Key risks and mitigation
Page 215 of 238

17. Key risks and mitigation
The key risks associated with implementation of the project along with possible mitigation measures are e summarized in this section. It must be noted that
risks universe is dynamic and is likely to change periodically. It is recommended that frequent analysis is carried out and mitigation plans are drawn. Below
are risks that may impact this project;
Table 59: Risk & mitigation
Impact on
Key broad area Risk Mitigation
Cost Time Resources
Project Planning Risk of inadequate planning of time, effort and ► Adequate time and cost buffer to be kept to
resources required to complete the project deal with contingencies.
► Appointment of CMC for detail design and P P P
project management during construction of the
TC
Approvals and Risk of delay in clearances from local ► Appointment of PMC firm.
Clearances authorities like ► Timely application of approvals for relevant
► Plan Sanction – Town Planning Authority/ authorities by CMC
Local Body ► Monitoring of status of Approvals.
► Commencement Certificate – Town
P
Planning Authority/ Local Body
► Fire NOC – Provisional and Occupancy –
Local Fire Authority
► Plinth Checking Certificate – Town
Page 216 of 238

Impact on
Cost Time Resources
► Building Completion Certificate – Town
► Consent to Establish and Operate –
Pollution Control Board
► MAP Approval and Factory License –
Directorate of Industrial Health and Safety
► Labour License – Labour Commissioner
► Fuel Storage – Chief Controller of
Explosives
► Tools, Tackles, Pressure Vessels, Hoists –
Competent Engineer
► Electrical Systems – Electrical Inspector
Environmental risk Loss of top soil ► Top soil excavated from the site should be
carefully handled. It should be collected
separately and stored as a heap which is
appropriately covered. The heap should not be P P
put in the direction of wind to avoid dust
generation
► Maximum effort should be made to utilize the
top soil for landscaping within the site
Air pollution due to digging and levelling ► Water sprinkling shall be practiced
P P
activities
Page 217 of 238

Impact on
Cost Time Resources
► Construction machinery shall be properly
maintained to minimize exhaust emissions of
CO, SPM and Hydrocarbons
► These activities shall be avoided in very high
wind and cover should be provided for loose
construction material
Water contamination and health risks ► Toilet shall be earmarked for both men and
associated with setting labour camp for women contractual workers
construction ► Adequate drinking facilities shall be provided at
P P
the construction site;
► Temporary crèche facility may be provided in
case of migrant labourers children residing in
the camps to ensure safety
Land and water contamination due to waste ► Waste shall be stored at designated place after
generated at site segregation on the basis of category
P P
(hazardous and non-hazardous)
► Hazardous waste shall be disposed of to the
authorized vendors only
Air pollution due to use of D.G set. ► D.G set to be optimally used with proper
orientation and adequate stack height
► Stack monitoring carried out on regular basis
Page 218 of 238

Impact on
Cost Time Resources
► Proper maintenance of the DG Set should be
carried out on regular basis
► Acoustic enclosures are to be provided with the
D.G sets to minimize the noise levels
Construction Delay in construction due to cost overrun, ► Appoint a PMC for a design and build contract
management of building contractors. for managing construction.
► Strict timeline will be made and agreed with
P P
PMC.
► Regular M&E, Built in mechanism for penalty
for delays and incentive for timely completion,
ensuring timely payment based on milestones.
Deviation in project Change in project scope ► Clear buy-in on project plan and execution
scope ►initiated by MoMSME, planning.
P P P
►Machinery supplier constraints ► Identification of Machinery suppliers based on
►Product discontinuation the top current suppliers and technology
available.
Maintaining World Construction quality may not be up to the ► Appointment of third party Government quality
Class Construction mark. assurance agency.
quality
On-boarding of Key Delay in on boarding of key project ► Clearly defined scope and incentives for
P P
players stakeholders stakeholders.
· Technology Partner ► Timely contracts with the project stakeholders.
Page 219 of 238

Impact on
Cost Time Resources
· Construction Network Manager
· Construction Management Consultant
Quality Assurance
Procurement of Delay in procurement of machines and goods ► Machines and equipment chosen should be
machinery due to high Lead time and time taken for standard and popular models available in
clearances market. Early release of order confirmation and
advance if any. P
► Appointment of efficient and pre-approved
Clearing & Handling Agency (CHA) to ensure
timely clearances and transportation of
machines.
Variation in Equipment required and finally ► Neutral specifications to be drafted based on
procured. Too stringent specs may lead to high thorough research on TC requirements and P P
price and low competition, loose specs may current models available.
lead to low price but low quality
Trained resource Availability of trained manpower for operation ► Machine specific training programmes to be
P
availability of new machines conducted for training of key personnel and
knowledge sharing.
Market ► Change in product mix ► Expansion of product base.
► Change in customer mix ► Increase in customer base.
► Change in technology ► Develop a backup plan for retiring of obsolete
► Change in product pricing machines.
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Impact on
Cost Time Resources
► Competition from Govt./Public tool rooms
► Lack of cluster development in the target
region
Transportation ► Challenges in transportation due to issue ► Adequate time and cost buffer to be kept to
P P P
of insurgency deal with contingencies.
Policy Change in Government Policy/ Schemes for ► Increase existing customer base.
► Training ► Diversify into new sectors.
► key sectors
P P
E.g. Change in Government space
programme, increase in imports may
affect orders from major clients
Taxation Change in service tax policy on training may ► Institute should keep abreast with policy
adversely affect training revenue changes and the same should be considered
while designing the course and fee structure.
Human resource ► Labour availability ► Planning for holidays and lean periods.
► Retention of key employees (Flight of key ► Good incentive scheme and career P P
talented people can make it difficult to development plans.
achieve centre’s growth plans)
Management risk Lack of capable management to run the TC ► Leadership training.
P
► Succession planning.
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Impact on
Cost Time Resources
Maintenance risk/ Delay in availability of spares and service ► Procure models that are likely to continue for
spares - Availability support at a reasonable cost at least next 5 yrs. to ensure better availability
P
of spares & services of spares and services.
Performance of key Poor performance of Outsourced agencies like ► Establishment of KPIs

stakeholders TP, CNM and PMC ► Periodic review of performance. Suitable P
penalty clauses to be added in the ToRs.
Weather Delay in construction due to monsoon season ► Planning for lean periods and periods of low
P P
construction activity.
Dependencies Skewed towards stevia ► Stevia is already being planted on 1000 acres
of land, and is proposed to increase
P P P
► Extraction will be dependent on the TC
► There are very few players in this field
Dependencies Dependent on success of LBIs ► LBIs have been running in the state for the past
P P
1 year
Page 222 of 238

Conclusion
Page 223 of 238

18. Conclusion
The TC at Imphal is proposed in the Aromatic and Medicinal Plant sector, with an emphasis on
cultivation and processing, including extraction of fragrant raw materials. The focus areas of the TC
will include Innovation and Development, Processing and Value Addition, Quality Testing and
Assurance, and Training. The TC will provide consulting services across these verticals to cultivators,
aspiring entrepreneurs, and MSMEs. The TC will make a concerted effort to reach out to potential
entrepreneurs and MSMEs for providing these services.
TC will contribute towards skilling youth to make them employable in industry by designing courses
relevant to them. Courses will be in various aspects of cultivation and processing of fragrant raw
materials. In addition, the TC will also provide training in CAD / CAM to students in the area in order
to hone their skills in design and manufacturing, thereby increasing their employability. The focus
areas for the proposed TC are in line with objectives of the program. This will further be
complemented by the proposed innovative ideas for the TC like;
► The TC will take steps to facilitate a hub-and-spoke model with LBIs in Manipur. This will create a
sustainable ecosystem wherein farmers and cultivators will receive quality planting materials,
LBIs will engage in undertaking primary processing activities, and the TC will undertake further
processing for the extraction of essential oils and medicinal plant extracts.
► The TC will provide training to cultivators and undertake workshops on medicinal and aromatic
plants which can be grown on the land off season. They will also be trained on cultivation
techniques and cultivation quality standards such as Good Agriculture Practices (GAP) and Good
Field Collection Practices (GFCP). They will also be provided information on sustainable cultivation
practices in order to preserve the environment and ecosystem. Farmers will also be trained on
primary processing techniques in order to increase their role in the F&F value chain.
► The TC will provide hand holding support to aspiring entrepreneurs. They will have access to
processing equipment and testing equipment. They will also be assisted in preparing a road map
for the next 3-5 years to ensure that these MSMEs can develop the expertise to become more
competitive. It will also help aspiring entrepreneurs to gain financing and required clearances for
establishing their enterprises.
► The TC will undertake workshops for entrepreneurs on value addition, packaging and quality
systems which should be adhered to in order to make products nationally and internationally
competitive.
All these initiatives of the TC would not only strengthen the expertise of cultivators and MSMEs in
manufacturing but also help to develop a sustainable ecosystem for MSMEs in the region in the long
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run. On the same line, even investments have been proposed keeping the focus area and adherence
to EHS guidelines in mind.
Above all, TCSP program will enable TC to showcase the best practices not only in the adoption of
technologies and skilling the youth but also managing all the associated environmental and social
aspects.
Page 225 of 238

Annexure
Page 226 of 238

19. Annexure
19.1 Social screening for establishment of new TCs
In RPF, particular attention will be paid to the needs of vulnerable groups among the affected
especially those living Below the Poverty Line (BPL), the landless, the elderly, women and children.
The Entitlement Matrix that is a part of this RPF has provisions for compensation and resettlement
assistance to all Project Affected Persons as categorized above in broad terms. This Resettlement
Policy Framework and its Entitlement Matrix are based on World Bank’s social safeguard policy that
consists of OP 4.12 – Involuntary Resettlement and OP 4.10 – Indigenous Peoples and also
Government of India’s The Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation and Resettlement Act, (RFCTLAR&R Act) 2013.
► The World Bank’s Social Safeguard Policy consists of OP 4-12 – Involuntary Resettlement and
OP 4.10 – Indigenous Peoples. The OP on Involuntary Resettlement has clearly stated policy
objectives, impact covered, mitigation measures and eligibility criteria. It also has guidelines for
preparing Resettlement Policy Framework and this RPF is in accordance with these guidelines.
► As far as OP 4.10 – Indigenous people are concerned; it uses the term Indigenous people in a
generic sense to refer to a distinct, vulnerable, social and cultural group possessing certain
characteristics in varying. The RPF uses the term Scheduled Tribes (ST) rather than Indigenous
people.
► The social screening process as set out in this document would help to determine whether or not
Bank’s social safeguard policy either on Involuntary Resettlement or Indigenous Peoples will be
triggered.
Following is the social screening certificate for the Imphal TC:
Page 227 of 238

Page 228 of 238

Page 229 of 238

19.2 Environmental Screening
The table below provides an overview of the environment screening:

Table 60: Environmental screening
SN Issues Yes/No Remarks

Will the expansion or new tool The allotted land is in a designated industrial
room affect the land use No area earmarked for development of Food
1
pattern? Tech Park. Therefore expansion will not
affect the land use pattern of the area.
Will the development include As the Site is devoid of tress, no clearance
2 significant land disturbance No will be required in the development of the
or site clearance? Site.
The Site is in the name of Ministry of
Will the project involve Commerce and Industries and has been
3 acquisition of land from No leased to DC-MSME. Therefore, the project
private players? does not involve acquisition from private
players.
The selected site is defined as
4 industrial / commercial / No Site is within an Industrial zone.
residential?
Forest land is located at an aerial distance of
Is there any protected area 150m and Imphal river flowing adjacent to
or biodiversity sensitive area the eastern and southern boundary of the
5 in the vicinity which is likely No Food Tech Park. The water level was
to be affected by the observed to be 10m lower than the ground
operations of the tool room? level during the Site visit. No instances of
floods were recorded in the area.
Is there any archaeological or There is no archaeological or
6 cultural/heritage structure in No cultural/heritage structure in the vicinity of
the vicinity of the site? the sites.
Is there any group of
No indigenous communities were observed in
7 indigenous people in and No
and around the Site.
around the selected site?
What is the source of water The water at the Site shall be supplied by the
available at the site (Ground municipality as per the discussion with the
8 water, surface water, No Site Representatives. As observed during the
municipal supply, etc.)? Is the Site visit, industrial corporation has installed
water requirement envisaged an overhead tank to cater to the upcoming
Page 230 of 238

SN Issues Yes/No Remarks

to put additional pressure on industries. As the operations of the tool
the water sources? rooms are not water intensive, it will not put
additional pressure on water source.
What were the sources of air
No sources of air emissions were observed
9 emissions observed on the No
during the Site visit.
Site?
What were the sources of No sources of noise were identified on/ near
10 No
noise identified on the Site? the Site during the Site visit.
Were any chemicals used on No chemicals were being used on the Site
11 No
or in the vicinity of the Site? during the Site visit.
Does the Site involve
handling, storage and
disposal of hazardous waste? The Site did not involve use/ handling/
12 No
If yes, what are the different storage of chemicals.
types of waste envisaged
from the TC?
Is the project located in the
The area falls in the Seismic zone – V. This
area of seismic faults? In case
13 No factor should be considered when designing
yes, in which seismic does the
the TC.
location lie?
Is there any record of natural Natural calamities like earthquakes are
calamity in the area in the evident looking at the historical data. Largest
past? If yes, what is the instrumented earthquake in Manipur was in
14 Yes
probability of the same 1987 (magnitude 6.2). Most recent
effecting the operations of earthquakes in the region have occurred in
TC in the future? 2011, 2015 and 2016.
The following potential environmental concerns were observed on/in the vicinity of the Site:
► Location of forest are at an aerial distance of 150m to the Food Tech Park; due care
should be taken during construction phase.
► Imphal River is adjacent to the boundary of Food Tech Park. Boundary walls were
observed to be constructed throughout the food park and the water level was
approximately 10m lower than the ground level during site visit. No instances of floods
were recorded in the area.
► Therefore flooding is not envisaged as a concern on the Site.
Page 231 of 238

► A centralised STP is under construction in the western portion of the Site. The treated
STP water is planned for being recycled on the Site. Further, based on the discussions
with the Site Representatives, a centralised ETP is also planned for handling the waste
water within the Food Tech Park. Therefore, the Site plans to implement zero discharge
on the Site, avoiding discharge of effluents into the Imphal River. EY has requested
Ministry of Commerce and Industries to provide details of Environmental clearance, STP
and ETP design parameters for review.
Mitigation measures as outlined in the Environmental Management Framework (EMF) needs to be

adopted during construction of TC to avoid any affect to the receptors. The construction design of
the TC should incorporate the factors for earthquake resilience.
Page 232 of 238

19.3 List of Medicinal plants in Manipur
S. No. Botanical name Common name Part Used

1 Abroma augusta Linn. f. Ulat kambal Root, Fruits
2 Aconitum ferox Wall. Vatsnabh/ Vish Root
3 Aconitum heterophyllum Wall. ex Royle Atis Tuber
4 Acorus calamus Linn. Bach, Sweet flag Rhizome
5 Aegle marmelos Corr.ex Roxb. Bel/Bilva Fruit/ Leaves
6 Aloe barbadensis Mill. Ghrit Kumari/ Leaves
Aloevera
7 Aquilaria agallocha Roxb. Agar Wood
8 Asparagus raecemosus Willd. Satavari Tuber
9 Azadirachta indica A.Juss. Neem Stem Bark, Leaves,
Fruit, Oil
10 Bacopa monnieri (Linn.) Penn. Brahmi Whole plant
11 Bixa orellana Linn. Sinduri/ Annto Fruit, Flowers
12 Coptis teeta Wall. Mamira Root
13 Dioscorea bulbifera Linn. Varahi Corm
14 Embelia ribes Burm. f. Vai Vidang Fruits
15 Gloriosa superba Linn. Kalihari Tuber
16 Glycyrrhiza glabra Linn. Mulethi Rhizome
17 Homomelia ipecacuanha Ipecac Root
18 Panax pseudoginseng Wall.. Ginseng Whole plant
19 Phyllanthus emblica Linn. Syn. Emblica Amla Fruit
officinalis Gaertn.
20 Picrorhiza kurroa Benth.ex Royle Kutki Root
21 Piper griffithii Long Pepper Fruit
22 Piper longum Linn. Pippali Fruit Root
23 Podophyllum hexandrum Royle Bankakri Root
24 Rauvolfia serpentina Benth.ex Kurz Sarpagandha Root
25 Stevia rebaudiana (Bert.) Bertoni Stevia Leaves
26 Swertia chirayita Buch-Ham Chirata, Charayatah Whole plant
27 Taxus wallichiana Linn. Talishpatra Leaves
28 Terminalia chebula Retz. Haritaki Fruits
29 Tinospora cordifolia (Willd.) Miers ex Guduchi Stem
Hook.f. & Thoms.
30 Withania somnifera Dunal Ashwagandha Root
Source: Ministry of Ayush, 2012
Page 233 of 238

19.4 Details of Stakeholder Discussions
Sr. No. Industry Representative Key points discussed during the meeting
Name Designation
Meetings at Nilakuthi on 16 May 2016
1 Vivek Commissioner, ► Make in Manipur scheme has been
Dewangan Department of designed in order to promote training and
Commerce & entrepreneurship development
Industries, Manipur ► Livelihood Business Incubators (LBIs) have
2 Dr. Lohro S. Intouch Naturals been formed which provide farmers with
Pfoze Private Limited cultivation material and training, and then
3 Joykumar Likla Water, buy back crops from them and undertake
Thangjam To set up food primary processing
processing unit in ► The TC should operate on a hub-and-spoke
Nilakuthi Food Park model with the LBIs
for fruit based drinks ► Stevia is a key crop which is being
4 K.N. Singh Developed model for cultivated in Manipur
training farmers ► Income from stevia is 2-3 times more than
income from normal crops, and the stevia
in Manipur has the highest content of
steviocide in the world
► The TC should focus on extraction of TGC
and Rebocide A (the TC will be a pioneer in
the country for this)
► Other focus areas should include turmeric,
ginger, lemon grass, citronella, cardamom,
honey etc.
► The TC should focus on upgradation of
skills for farmers, entrepreneurship
development, value addition services,
quality testing
► The TC can collaborate with units in the
food park to utilize by-products (such as
orange / lemon peels) for production of
essential oils
► Some industrialists in the food processing
industry currently send samples to other
parts of the country, which is challenging
as they have to arrange their own
transportation for liquid samples. The TC
can address this issue by providing testing
services
► Lab skill training in quality assurance and
testing is also required
► In addition, obtaining market linkages is a
problem for some industrialists. The TC
can assist in this
► For processing of Medicinal and Aromatic
plants into essential oil, a critical volume of
raw materials is required. This cannot be
achieved by single farmers.
► Similarly, for export of Medicinal and
Aromatic Plants, a critical volume is
required. This cannot be achieved by a
single cultivator or small scale
entrepreneur. The TC can buy these raw
Page 234 of 238

materials from multiple farmers and form

MoUs with other countries for export.
Meetings at Imphal on 17 May 2016

1 Arvind Working on Make in ► TC should focus on stevia, lemon grass,
Mudgal Manipur Scheme; citronella, ginger, turmeric, honey,
2 Nidhi Proposed staff for TC cardamom
Chaturvedi ► At later stage, other MAPs and spices will
3 be focused on, including geranium,
4 patchouli, etc.
5 ► Currently, LBIs undertake primary
6 processing. However, secondary
processing is required and this can be met
by the TC
► Quality assurance and certification is
required for national sales as well as
exports
► There is large scale value addition from
processing raw materials into essential
oils. For example, locals sell raw ginger for
Rs. 10 per kg. 330 kg of raw ginger can be
used to make 1 kg of ginger oil. This sells
for Rs. 30,000 per kg.
► Training should not only be for skilling in
the sector, but also for entrepreneurship
development, obtaining loans, preparing
project reports, marketing
► The TC can form tie-ups with export
houses as well as with other countries
► Industry tie-ups can be formed for training
► Transportation will be one challenge for
the TC in terms of sale of products, due to
bunds and blockades in Manipur
► Tie-ups can also be formed with the forest
department for valuable herbs for drugs,
as well as with the proposed biotech park
► In addition to this, the manpower
requirement and training courses for the
TC were discussed
Meetings on 18 May 2016

1. Students who ► Challenges faced by aspiring
undertook course at entrepreneurs include difficulty in availing
FFDC Kannauj to bank loan
become Master ► In addition, there is lack of know-how on
Trainers how to establish an enterprise
► There is scope for the TC in Manipur due to
the abundance of medicinal and aromatic
plants in the area
► There is a need for training in
aromatherapy as several people from the
region open spas
► There is also scope for courses in CAD /
CAM
Page 235 of 238

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Draft Detailed Project

The Office of Development Commissioner - MSME

Director (Tool Room)

This Detailed Project Report is based on inquiries of and discussions with:

► Officials of FFDC Kannauj

► Sector experts in Manipur

► World Bank Mission

Very truly yours,

Amar Shankar, Partner – Advisory Services

AICTE All India Council for Technical Education

GFCP Good Field Collection Practices

PPDC Process and Product Development Centre

Changes Aliya Bhandari

Changes Aliya Bhandari

Changes to financial Aliya Bhandari

6.4.1 Primary Research ................................................................................................ 81

8.2.2 Environmental screening .................................................................................... 127

16.5.2 Maintenance of the TC ....................................................................................... 211

Table 1: Result indicators of the RFD ...................................................................................... 28

Table 47: Consultancy revenue assumptions ......................................................................... 188

1.1.1 Demographic overview and challenges

1.1.2 Country’s manufacturing objectives

The National Manufacturing Policy has six objectives:

During the budget speech of 2013-14, following announcement was made;

1.1.4 Technology Centres Systems Program

► Number of enterprises paid for services rendered including placement services

This program will create an ecosystem to help MSMEs become

1.1.5 Key TCSP stakeholders

► MSME Units - Beneficiaries

► Office of Development Commissioner, Ministry of MSME (DC-MoMSME)

· Regional / sectorial industry associations representing MSMEs

► Program Management Unit (PMU)

► Manufacturing Technology Partner (MTP)

► Cluster Network Manager (CNM)

► National Portal Service Provider (NPSP)

► Construction Management Consultant

1.1.6 RFD of TCSP

TCSP’s objective is to enhance the competitiveness of MSMEs by improving their access to

► Revenue earned by respective TC from,

Table 1: Result indicators of the RFD

Number of enterprises paid for services rendered

Program development objective Number of long term trainees employed by industry,

TCs' gross profit before depreciation (not including

TCs revenue from access to technology activities

No. of technology strategies/roadmaps developed by

Number of trainees trained (direct program beneficiary)

Number of needs assessment and business plans

Number of users of IT Platform

Component 3-Technical Establishment of PMU for program implementation and

1.2 Overview of existing MSME TCs

Table 2: Existing TCs & TRs with focus sectors

SN Name Focus Sector

General engineering (Hand

SN Name Focus Sector

Figure 2: Location of existing and planned TRs & TCs

► Agro Technology Services

► Processing and Value Addition

► Fragrance and Flavour Creation Services

· Establishment of modular course structure for advanced training of industry professionals.

DPR Objective and

2. DPR objective and approach

► Construction Management Consultant - For the development of the facility

3. Framework for selection of industry/ clusters/ systems/