one day seminar on challenges and opportunities …one day seminar on challenges and opportunities...

23
One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers India Kollam chapter conducted seminar on Challenges and opportunities of Entrepreneurs” on 25 th April, 2015 at Kollam Beach Hotel. Inaugural Function Sri Shibu baby John, Hon’be Mininster for Labour and Rehabilitation of Kerala inaugurated the seminar and Sri K.P Ramachandran nair . Chairman Key Pee group and President KeralaState Small Industries Association given Key note address. Dr. S Retnakumar, Managing Director, Rubben address. Mark given felicitation address. The meeting was presided by QMA president Sri K G Jacob and Sri Rajendra Prasad, Secretary, IEI welcomed the gathering. The seminar organizing committee chairman Dr. P G Mathews given vote of thanks.

Upload: others

Post on 12-Apr-2020

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

One Day Seminar on Challenges and Opportunities of Entrepreneurs

The Quilon Management Association Jointly with Institution of engineers India Kollam chapter

conducted seminar on Challenges and opportunities of Entrepreneurs” on 25th April, 2015 at Kollam

Beach Hotel.

Inaugural Function

Sri Shibu baby John, Hon’be Mininster for Labour and Rehabilitation of Kerala inaugurated the

seminar and Sri K.P Ramachandran nair . Chairman Key Pee group and President KeralaState Small

Industries Association given Key note address. Dr. S Retnakumar, Managing Director, Rubben

address. Mark given felicitation address. The meeting was presided by QMA president Sri K G Jacob

and Sri Rajendra Prasad, Secretary, IEI welcomed the gathering. The seminar organizing committee

chairman Dr. P G Mathews given vote of thanks.

 

   

   

 

 

Page 2: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

Session -1 Rubber- Abusiness harmonizing Potential Investment opportunities and Technical

Challenges.

The speech by Dr S. Retnakumar , Managing Director Rubber Mark was regarding the rubber

industry. Prof. Madhusoodhanan Pillai, professor, TKM Institute of Technology, introduced the

speaker to the audience.

The history of rubber - Collected Rubber seeds from Brazil, deposited in UK, partly send to Ceylon and

balance sent to Malaya and other Asian countries In 1873; Calcutta, 1902; Thattekkad, in 1921 set up

Factory, in 1947 Rubber Act &Indian Rubber Board in 1954;Rubberboard. The global rubber

production ranking in 2013 is 1st Tahiland 2nd Indonasia, 3rd Vietnam 4th China and 5th India.

The production of natural rubber in Kerala during 2012-13 is 8,40,604 MT and the vale is Rs. 16,150

Crore. The consumption is 972705 MT and the value is Rs. 17,192 Crore. The quantity exported is

30594 MT with value 468.5 Crore and quantity imported is 217364 MT with value Rs. 3887.90 crore.

The major opportunities are: Growing demand- The Population is growing, GDP is related to

consumption of natural rubber –so– there will be growing demand as GDP increase. Natural rubber

needed in tyre – SR/NR substitution only 10%. Non-tyre Industry is growing. In 2011-Rs 19,000cr,

2014- Rs 25,500 cr. Expecting in 2020-Rs 54,000 cr and in 2025-Rs 97500 cr . 70% of natural rubber

consume in tyre production. There is Scope for carbon trading. 7,78,000 Ha rubber area sequesters

17.11Million tonnes Co2 to synthesize 8,44,000 tonnes of Rubber (all parts including rubber ). NR is

a strategic industrial product.

 

     

Page 3: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

NR availability(92%) - Potential for value addition and employment. Export potential - (2000-01 ,Rs

21,000 million,2010-11 Rs 79,266 million). We have Best infrastructure facilities and Technical and

Marketing support(Rubberpark). GOI support for Clusters. Common facilities -Make in India Projects -

Branding as Indian Natural Rubber -Certification will be done by Rubberboard regarding QA which

will fetch high value. Liberalised Policy& Fiscal incentives

In 1957- first bridge in the world constructed on laminated rubber bearings – Lincoln, UK and in 1966-

first building in the world constructed on laminated rubber bearings – Albany Court, London, above St James’

tube station.

WIDE PRODUCT RANGE ESTIMATED AS AROUND 50,000 NOS

Latex based goods : Gloves, Foam, Thread, Catheters and other medical devices, Band, Condoms,

Balloons etc

Dry rubber based goods : Tyres and Inner Tubes of Cycles, Cars, Trucks and other vehicles; Aero

tyres, other vehicle parts; Tubes & Pipes; Belts & Hoses, Slippers etc

In Non-Tyre rubber industry the total turn over in 2014 is Rs. 25,500 crores and expecting Rs.

54,000 crore in 2020 and Rs. 97500 crores in 2025.

Rubber park India (P) Ltd., Joint venture of Rubber Board &KINFRA (1997) , Project cost Rs 28 cr ,

Airapuram(107 acre), 41 lessees, 31 started, 8 under construction, Employment for 1100 persons,

Land on lease (90 yr), Rent Rs 13.23/cent/yr, Maintenance Rs 13.23/cent/yr, Development cost(DC)

Rs 60000/cent, Regn.charge 5% of DC.

Rubberpark helps in Project identification, Feasibility Studies, Clearance, Technology sourcing,

Venture Capital, Selection of Plant and machinery, Subsidy schemes. Major units -

Balloons,Condoms,gloves , Moulded rubber products, Air & abrasive hoses, Compounds &

PC.treads.

     

Page 4: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

RUBBERPARK II(PIRAVANTHUR): Project cost Rs16.25cr , Rubber Board & KINFRA with GOI, 40

Acres , Value added non tyre produts thrust to Export, Quality Infrastructure, Meet regional

Requirements, Export earning:1278cr. Target industries - Latex based, Surgical,industrial,household

gloves/condoms, Dry Rubber Products- Automobile components, Rubbermats , Transmission belts,

Hoses and tubings, Tread rubber, Gaskets and Seals, Industry Rub component.

MAJOR CHALLENGES:

Threats from imports (Latex dip goods ,NR ,Rubber chemicals), Volatile Raw Material Prices (N

R,SR,Rubber cables,Rubber hoses), Technology gap, New technology expensive, Lack of R& D

facilities, (Auto components, conveyer belts,bicycle tyres), SME constraints, 80% units in SME

category. Inverted duty structures (Duty of product is lower than raw materials .Raw material duty varies ,5%-

70% but end product varies -0%-10%)), Un Skilled Labour , (Auto components , Rubber cables,Tyre

tubes, gaskets ), High cost of finance (India -10.6%,China-6%, singapore 5.4% ,Russia 9.1%) - Lack

of fiscal incentives.

Even though NR availability is 92%,value added units are few and hence potential for value added

rubber products. Growing demand for tyre and non tyre products and export potential. Emerging

excellent infrastructure facilities in Rubber park II , Kollam for rubber industries focussed on export.

Scope for Energy Efficiency enhancement and carbon trading Support initiatives of Rubber board.

Er. Pratap Kumar, of IEI, Principal, MES Institute of Technology and Management concluded the

session and presented memento to the speaker by Prof. Madhusoodhanan Pillai.

Session 2 – Issues and Challenges in cashew business.

Dr Rathessh, Managing Director, Kerala State Cashew Development Corporation(KSIDC) was the

speaker for the subject Issues and challenges in cashew business.

     

Page 5: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

Er. Sreekumar of IEI, introduced the chief guest.

Cashew, the most delicious amongst nuts whose native is Brazil. In the 15th century, Portuguese

explorers took cashew trees from this South American country and introduced them into India and

some African countries. The first introduction of cashew in India was made in Goa, from where it

spread to other parts of the country. Cultivation of cashew in India is mainly in Maharastra, Kerala,

Orissa, Andra Pradesh, Goa, Tamil Nadu, Karnataka etc. The cashews, botanically known as

Anacardium occidentale . India is the largest Producer, Processor, Consumer and exporter of cashew in the

world. Ministry of commerce, Government of India confered Kollam as “CASHEW TOWN OF EXPORT

EXCELLENCE”.

India needs 2.2 Million MT cashew for processing. We produces only 0.75 Million MT and imports

0.75 Million MT from Tanzania, Guinea Bissau, Ivory Coast, Indonesia, Mozambique, Kenya, Nigeria,

Senegal, Ghana, Gambia and Madagascar. There is a gap of about 0.7 Million MT. The non

availability of good quality raw nut is also a major problem faced by this industry . There is no parity

between raw nut price and kernel price. The bank finance is not easily available and high interest rate is an

important problem in this industry. Severe labour shortages and non availability of skilled labour are forced to

think about mechanization . The legal issues are: Non availability of export subsidy from Government, Labour

problems related to trade union , Imposition of purchase tax, Heavy investment required for purchase of raw-

material.

Challenges: India is competing with Vietnam for number one position exporter. The bank and financial

institutions are providing small amount of loans and advances at high rate of interest basis. They are asked

high securities and not giving this loans and advances at correct time. This leads to the shortage of production.

Hence bank finance should be easily available and Interest rate should be low. The exchange rate fluctuation

directly affects the profitability of cashew exporting companies.

OPPORTUNITIES IN CASHEW SECTOR: According to an export potential survey conducted by the Indian

Institute of Foreign Trade(IIFT) over an above the conventional market China and Russia are the good

International markets of cashew products. India has started to make and launch different value added

products to market. Cashew is known as “POOR MAN’S CROP AND RICH MAN’S FOOD” . Cashew

     

Page 6: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

industry is a labour oriented industry, which employs mainly women from economically backward classes of

society and about 95% of workers are women. Thus this industry is a source of money earning to the women

from backward classes .

In India cashew industry is developed and introduced new value added products such as chocolate-coated

cashews, flavored cashew, cashew soups and cashew drinks. This changed the existing place of plain, roasted

and salted cashews. Growing appreciation of value-added products in both domestic and global markets has

attracted even foreign players to the Indian cashew industry.

Cashew industry is a sustainable model of development. Agricultural output is used as raw material to industry

and product have international demand. If we are able to produce required raw material India will be able to get

maximum foreign exchange to tune 5000 crores. Thus we can address the issues and challenges faced by

Industry.

Sri K. G. Jacob president QMA concluded the session and memento presented to Dr. Ratheesh by Er.

Sreekumar.

Session-3 . Coir – The Twisting Destiny.

Mr. K M Muhammed Anil, Director GKSF and Former managing Director of Coir Fed have given an interesting

speech on the 3rd session of the seminar on the topic coir industry. Prof Muhammed Sakhir, Secretary Public

Relation of QMA introduced the speaker to the audience.

Story of coir starts from Hindu mythology …..Kalpa Vriksham-katisharkara yogam[salagram]-anantha

shayanam-malarnedyam - Golden fibre of Gods own country-GIR - White fibre[Green Nuts] Brown fibre[

     

    

Page 7: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

Ripe/dry ] Its 150 yrs of traceable history . Mentioned in Marco polo's Book –using coir in Arabian Ships ..[13th

century-1237] Uniqueness of the gods own country patronage this rural livelihood activity

100 percnet bio-degrdable -More lignin and less cellulose content makes it more durable. It is relatively

waterproof and resistant to damage by saltwater. More than hundred different varieties of Coir yarn are

available in Coirfed with different Diameter, Twist and grades. Coir can be used in making an alluring range of

Mats, Mattings, Rugs, Carpets, Floor tiles, Mattress, Pillows, and cushions. It is used in manufacture Geo-

textiles and is widely used in farms as trailers for hops and other creepers. Its boom starts with arrival of British

in 19th Century. They had done survey in 1801 about the exportable quality and quantity of Coir. Daragh and

Smail the British businessmen who established the first mechanized coir mat manufacturing unit in Kerala in

1885. After Karthikappally in Alappuzha District Came Chavra-Panmana –Thevalakkara came as ideal place

for export. First export was done in November 3rd 1804 from Cochin. 1225 Tons Coir in 1900-01 – 39686,

1935-36 --- 83000. All thses are basically Fibre and Coir Yarn. Later Mats and Mattings too came in to the

seen.

Government and co-operatives - Coir Directorate- 11 POs - COIRFED-Yarn Spinning Societies-ICS - Coir

Corporation-PMS ,Formattings-NCRMI-Machine F, Coir Board, GOI, Private Small Scale Industries, Private

Corporate .

Challenges /story of declining - Loosing Monopoly of Raw material and lifestyle -Timely integration of

Technology -Over Politicization of co-operatives -Lack of professional management -3000 PM -Corruption

[Runnage / wastage/mismangment] - Unique pricing system Domestic and international threats - Costly

employment. Protection through un healthy practices. No product diversification Other states moved fast un

attractive. sector absence of non imaginative – visionless programs. 120 Crores Vs 25000 workers. Still

chance to grow Coconut production status.

Product diversification: Oonjaal, Sneha kidakka for ICDS, Mutham kidakka for new borns

Grow Bag , Terrace farming Net , Coco-tree mat, Pookalam frame, Hostel mattress. from 43 Showrooms to

108 including one in Duabi Export from 13 Lakhs to 1.82 crores. Reached 23 lakhs audited working profit after

1986.

    

Page 8: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

The whole world is coming back to natural products-CGT, CoCo log-CPB, Multipurpose societies –Tourism,

Professionalization of apex organizations, Product diversification-Mechanisation-Standardization –Packing

classification of societies PPP projects Integrated Plans /Convergence. Proper utilization of asset is another

scope to increase the profit of coir fed.

Prof Sunitha Beevi Executive committee member concluded the session and memento presented to the

speaker by Prof. Mohammed Sakheer.

Session 4 Strength Weakness Opportunities and Threats of fisheries.

Mr Manoj T Varghes, CEO, Kings marine Fisheries, Kollam was the speaker for the subject Strength weakness

opportunities and threats of fisheries. Prof. sheeba of IEI introduced the speaker to the participants.

Distinguished dignitaries & guests on and off the diaz , all the established and aspiring entrepreneurs and

fellow engineers gathered here ..... A very good morning to you all!! It is indeed a great honour to stand before

you all and share with you an insight into my world of marine export through the topic of the day...

Opportunities and Challenges in the field of Fisheries.

There is a famous Chinese proverb that goes "Give a man a fish and he will eat for a day... Teach a man to

fish and he will eat for a lifetime".

I would like to give all of you gathered here some idea of the different pros and cons of making this fish a

source of livelihood and entrepreneurship. I would like to separate this topic into The opportunities and

challenges of Fisheries sector per se and those of doing this business in Kerala.

     

    

Page 9: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

OVERVIEW OF THE FISHERIES SECTOR

Fishing has been around from time immemorial in India. First the Dried and later Frozen Fisheries export

business in India itself has a long history of growing from a few consignments in1950s to a few countries to

crossing 1million tons worth almost 5Billion US$ in 2014 which could be almost nearing 6billion in 2015 or

Rupees 35,000crore TO 100 COUNTRIES IN 2015. The overall market share of these exports in 2014-15 was

about 25-26% to SE Asia & USA, E.U. about 20+% Japan 8+% Others 8+%, China <8% & middle east about

5%. At the same time considering this in comparison to a world trade of 143 billion$ growing at 4.5% we still

are a long way off.

Fisheries can broadly be classified as Capture fisheries and Aquaculture. India with an extremely long

coastline of over 8100KMs, OVER 2MILLION SQUARE KMs of Exclusive Economic Zone and over 1.2 million

hectares of brackish water bodies has huge potential to develop capture and aquaculture fisheries in a big

way. India's capture fisheries potential is estimated at 3.9million tonnes of which only about 2.6million tons is

exploited. It employs 30 lakh people and contributes to 1% of India's GDP.

Aquaculture is blossoming in India and is the single driving force behind the 6billion US$ figure that you just

heard. From the 1.24 million hectares of Brackish water India utilises hardly 15 % brackish water potential. To

the export basket Aquaculture contributed about 278 thousand tons of Shrimps and other items. Fresh water

aquaculture contributes to 95% of our aquaculture and the carps Rohu Cutla and Mrigal contribute to about

87% of the aquaculture by volume and primarily go into the domestic market.

India has 447 state of the art processing plants of which 60% are EU. approved with an installed capacity of

18520MT.

OPPORTUNITIES IN FISHERIES PER SE ARE MANY AND I'M LISTING A FEW AS FOLLOWS:

1.IDEAL PROTEIN:

As the world grows more and more health conscious this is an excellent field of business to be in. Fish is

the cheapest and most abundant natural source for Omega-3 fatty acids which are good for the HEART and

many other diseases like ADHD,CANCER, ECT. Also as the world recognises the ill effects of red meat, fish is

an excellent protein replacement for Red meat.

2.VALUE ADDITION THE KEY TO INDIA BECOMING A GLOBAL POWER HOUSE.

Value added seafood like breaded, battered, cooked,surimi, stretched shrimps, ect, is a growing market and

has a huge potential in the future. Newer technologies are today available to make the next generation of

     

Page 10: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

ready to eat cooked products and India is already doing this in a small way. If we account for the fact that most

of our seafood is exported raw for being reprocessed by other developing and developed countriesb then we

can easily see that the Indian seafood scene is just about to break out and become a global fishery power

house.

3.AQUA CULTURE CAN ENSURE STEADY RAW MATERIAL SUPPLY.

Aqua culture of various species can now ensure a steady supply of raw materials of the highest quality. As

Vannamei shrimp production picks up and replaces the existing Black Tiger Shrimp culture the raw material

availability will increase at least 4 fold even without expansion of area. So if we account for the unleashing of

the vast untapped potential and the increase and addition of various other crab and fish species to the culture

basket, the supply side looks extremely rosy. Cage culture too is at its infancy in India and has a huge potential

for the future.The Aquaculture scene has got boost and is brimming with confidence in the last few years with a

change of shrimp specie from BT to Vannamie. The silver lining is the advent of technologies for farming new

species like Tilapia, Cobia, Asian Seabass, Pompano, mud crabs and bivalves and these will further boost the

culture front in a big way.

4.MECHANISATION HAS MADE DIFFICULT PROCESSES EASY:Mechanisation is at its peak and can offset

any difficulties on account of manual labour shortages like never before in history.

5.THE INDIAN DOMESTIC MARKET IS THE DARK HORSE IN THE RACE:

The domestic frozen market has a huge potential to open up as India grows and more and more malls and

Super markets open up. As a proper cold chain gets established all over the country there will be a slow but

dramatic shift from fresh seafood to frozen seafood. This is because as already evident from the metros of the

country, as the urban population gets busy and gelled to the urban lifestyle they will loose the existing stigma

for frozen fish and instead develop an aversion to cleaning and dealing with fresh fish. The frozen value added

fishery products will be the preferred choice of the urban consumer of the future. This will open up a huge local

market.

6. THE CHILLED, LIVE AND AQUARIUM FISH MARKETS POISED TO TAKE OFF IN A BIG WAY:

The live, chilled, and Aquarium fish markets are increasingly being captured by India and as air connectivity

improves we can see a dramatic rise in the Indian share of these markets.

7.MODERN QUALITY SYSTEMS ARE CAPABLE OF HANDLING SYSTEMIC THREATS LIKE NEVER

BEFORE:

     

Page 11: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

Even though the quality standards have risen, modern quality systems and technology are available like never

before to ensure safe seafood is produced. Most of the Indian Seafood processors now implement a seafood

HACCP successfully.

THE WEAKNESS, THREATS AND CHALLENGES TO THE FISHERIES SECTOR PER SE ARE AS

FOLLOWS.

1.NATURAL AND INTRODUCED CHEMICAL CONTAMINATION FROM THE ENVIRONMENT:

As today's health conscious world recognises Fish as an excellent protein source it is also increasingly

becoming aware of the possibilities of contamination of this protein source. In the capture fisheries side the

common culprits are 1.radioactivity like from the Fukushima disaster, 2. Heavy metal contamination with

Mercury, Cadmium, Lead, Arsenic ect. from polluted waters especially in the case of Cephalopods and big

fishes like Tuna, Swordfish,Marlin ect. 3.Histamine contamination in the case of Histamine producing species

like Tuna, Kingfish, Mackerel etc. 4. Dioxins in case of all fish species is an upcoming threat.

On the aquaculture side of the fisheries spectrum Antibiotics have become a big menace and even a big threat

to the industry itself. Excessive use of antibiotics causes the consuming population to grow resistant to these

drugs resulting in the increase in virulence of many a micro organism and the emergence of many anti-biotic

resistant strains of bacteria.

2.BACTERIOLOGICAL CONTAMINATION:

Adhering to the bacteriological standards for the fishery product has been an age old problem of considerable

nuisance value to the trade which is capable of making huge financial loses. We live in a tropical country with

hot weather and bacteria multiply with ease here. It is therefore extremely important to prevent contamination

at every stage of trade from catch to fork. This is where the Indian fishery faces a stiff challenge. The stake

holders are many from the fishing point to the processor and the hygienic environment is pretty pathetic in

many landing centres and fishing crafts. Often even the ice used to preserve the fish is contaminated.

Contaminated consignments if detected by importing countries can lead to huge financial losses.

3.INVISIBLE TRADE BARRIERS AND FOREIGN COUNTRY REJECTION:

Chemical and Bacterial contamination just mentioned, together present ample ammunition to the importing

countries to set difficult sanitary and phyto sanitary standards for importing these fisheries into their respective

territories. Often these standards although presented as importation standards are in reality invisible trade

    

Page 12: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

barriers for developing countries like us. Most of the time the Indian product passes through these barriers

smoothly but there can be trying times when a specific product from a specific country is targeted. Just to paint

a layman kind of extreme picture, buying more Boeings and ignoring Airbuses could trigger an invisible trade

barrier which would pass off as a legitimate trade action taken for want of adherence to standards prescribed in

E.U. or vica versa. The US anti dumping duties on shrimps are a classic example. They don't have any

substantial quantity of aqua culture to provide their shrimp eating population but have imposed anti dumping

duties on many foreign countries' shrimps saying a few farmers in Louisiana are affected by the cheap shrimps

flooding the country. This is an important area in which the Indian think tank has to do some serious brain

storming. In my opinion today India has reasonably good imports from the E.U, U.S, & China which are the

likely countries to put up these barriers and so we need to systematically study what are the suitable barriers

that we can erect and when these need to be put into over-drive. I am not for a second advocating tit for tat but

just advocating the need for a balance protective mechanism to be ready for any contingencies.

4.AQUACULTURE PRONE TO DISEASES:

Diseases like EMS (Early mortality syndrome) the white spot virus the red gill disease and many such diseases

are very common threat to Aquaculture and have been known to even wipe out the entire the entire Aqua

culture of the country from coast to coast. In such contingencies there may be heavy stress on the system at

large and cash flow in particular. Although I must admit in certain years like 2014 the diseases were in other

Asian countries leading to a spike in Indian Shrimp prices and demand. In certain years it is possible that all

the countries are disease free and report huge harvests resulting in excess production, excess accumulated

stock and thereby a crash in prices all round.

5.THE ENEMY WITHIN:

Often we Indians are our own biggest enemy when it comes to world trade. Greed, systematic over fishing,

lack of net sizing, excessive unhealthy competition, illegitimate ways adopted in farming and lack of a scientific

approach are all domestic man made threats for which only we are to blame.

LOCATIONAL (KERALA) OPPORTUNITIES:

Locational Opportunities are basically 1.availability of skilled literate work force although much reduced when

compared to earlier times, 2.availability of sea material combined with aqua culture material from Kerala,

Karnataka, Tamil Nadu and Andhra Pradesh.

3.A long coast line with reasonably uncontaminated waters and a huge brackish water lake area is an ideal

location for this industry.

4.The clam fishery of Ashtamudy Lake was recently awarded the MSC certification for the short necked clam

which is a rare occurrence.

5.The traditional country crafts that bring in fresh material from shallow waters are of exceptionally high quality

and can often be put up for sale with the very best in the world.

6.Reasonably uninterrupted power which unfortunately is costlier than it should be considering it to be from a

hydel source is still cheap compared to other states.

Page 13: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

7.Labour shortages and high labour cost have recently been well complimented by the availability of cheaper

migrant labour.

8.Kerala has a huge potential for improving its dismal Aquaculture performance so far and if that happens

Kerala can regain some of the lost glory of its fishery past.

LOCATIONAL (KERALA) CHALLENGES

The locational challenges of setting up new projects in the fishery sector in Kerala has its own set of difficulties.

Here I'm not going to tow the old classical line of Kerala being a volatile place where new projects find it hard

to survive. Yes the mindset needs to change a lot still further but today's Kerala is a lot better off when

compared to yester years.

1.CRZ AND ZONING BAD URBAN AND RURAL PLANING A HINDERANCE TO THE

NEW ENTREPRENEUR: One of the most critical areas that I find impeding the growth of the fisheries sector is

the lack of Urban and rural planning. There are no areas that are legally suitable for a new entrepreneur to

establish a big project in. Although we have a long coastline the entire coastline is a no go zone due to the

enactment of the CRZ now called CMA. To my mind these acts have broken the back of any Kerala industry

that needs access to the water bodies. Kerala has abundant in-land waterbodies but to the discerning

entrepreneur it means a lot more areas become no go zones as the set backs to be left from the water body

while building makes it pretty stiff for his pocket as huge tracts of un utilised land will be wasted on account of

this law. Access to a water body is a must for any seafood project as the treated effluent water needs to be

discharged into it. To add to these central acts there are local state urban planning zonings that often prevent

any development from coming up. A suitable case in point is Kollam. There are virtually no Industrial areas left

on the map for a new project to come up. Whatever once existed have all been exempted for other purposes

and houses have come up and new Industrial Zones haven't been provided. So without the land how will new

entrepreneurs really start their projects? Similar is the case of rural roads which often cannot carry the 40'ft

containers on it. So in the interest of Seafood and other such industries dependant on access to water bodies

and wider roads I hope the government comes out with a suitable comprehensive master plan for the state as

a whole ear marking suitable areas for such industries in all the districts.

It is important to note that existing marine freezing plants have not moved from Kerala to neighbouring states

like the Cashew industry but I think this is only because the local entrepreneurs are heavily invested here with

plant and machinery already and have no choice other than to continue. Most of the culture materials are being

transported from far away Andhra Pradesh and Tamil Nadu to be processed here. This brings us to the point of

improving the Culture business in Kerala.

Kerala unfortunately missed the bus on the Aquaculture revolution and indeed its share has shrunk when other

states have leaped forward. The government needs to step forward and remove the bottle necks on the culture

front and at the same time needs to start a cage culture revolution which I'm sure the fishing communities will

be only too happy to embrace if they are involved in a cooperative model with revenue sharing.

Summing up I feel the Opportunities are way too attractive to not take on the risk, the Challenges pose and its

only a matter of time when India becomes a global seafood power house. I really hope, Kerala which was

Page 14: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

once the torch bearer of Indian traditional seafood export returns to its past glorious leadership role in this

Marine capture & culture revolution.

That was a sneak peek into the handsome, the good the bad and the ugly part of the fishery industry. I hope I

have been able to give you all a small idea of the incredible opportunities and the equally daunting challenges

in the fishery industry. Thank you all for your very patient attention!! Thank you!!

Sri Rajan nair, Vice-President of QMA concluded the session and memento presented to Sri Manoj T

Varghese by Prof, Sheeba of IEI.

Session 1: (After Noon ) Innovation and Incubation in IT as well as Non-IT sector in Kerala.

Sri K V Aravindakshan, Executive committee member of QMA introduced the speaker of the subject Innovation

and Incubation in IT and Non-IT sector in Kerala, Dr K C Chandrasekharan former CFO of Technopark,

Former MD & Registrar of Techno Park & Technology Incubator was the speaker of the session.

A business incubator is a company that helps new and startup companies to develop by providing services

such as management training or office space.

Business incubators differ from research and technology parks in their dedication to startup and early-stage

companies. Research and technology parks, on the other hand, tend to be large-scale projects that house

everything from corporate, government or university labs to very small companies. Most research and

technology parks do not offer business assistance services, which are the hallmark of a business incubation

program. However, many research and technology parks house incubation programs.

Under ‘MyEnterprise’, KITCO has decided to provide the entrepreneurs with space, shared resources,

business infrastructure and training market access. The initiative is open to anyone and everyone who is

passionate enough to work hard towards fulfilling their dreams of owning a successful business. KITCO is

also in the midst of setting up a KITCO Innovation fund, which is a crowd funding initiative. The KITCO

innovation fund will work towards providing support to emerging startups. It will be formed with the help

and support of successful businessmen, organisations and institutions based in Kerala who are eagerly

interested in innovation and entrepreneurship development in the state.

     

Page 15: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

An IT initiative was launched in Kerala which will incubate, mentoring of non-IT entrepreneurs, right from an

idea to a sustainable business venture.

Dr K C Chandrasekharan explained that many students have become successful entrepreneurs under his

guidance and mentor in techno park and other side of the country and other countries.

Sri K G Chitharanjan of IEI concluded the session and memento presented by Sri K V Aravindakshan to Dr K C

Chandrasekharan Nair.

Session 2: (After Noon )Scope of Financial Backing to Emerging Business:

Mr. Abdul Shukhur Secretary Program of QMA introduced the speaker Mrs. Salamma Skaria, Zonal Manager

of State Bank of Travancore. Mrs Salamma Skaria described the facility available for your entrepreneurs.

Successful long-term growth for most businesses is dependent upon the availability of equity capital. Lenders

generally require some equity cushion or security (collateral) before they will lend to a small business. A lack of

equity limits the debt financing available to businesses. Additionally, debt financing requires the ability to

service the debt through current interest payments. Cash Credit / Overdraft, Term Loan (TL), Letter of Credit

(LC) etc are available for business.

     

     

     

Page 16: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

In a business different types of funding are there. Funds from partners as working capital, funds from friends

and relatives – thanks fund, angle fund etc. Business “angels” are high net worth individual investors who seek

high returns through private investments in start-up companies. Private investors generally are a diverse and

dispersed population who made their wealth through a variety of sources. But the typical business angels are

often former entrepreneurs or executives who cashed out and retired early from ventures that they started and

grew into successful businesses.

These self-made investors share many common characteristics:

They seek companies with high growth potentials, strong management teams, and solid business plans to aid

the angels in assessing the company’s value. (Many seed or start ups may not have a fully developed

management team, but have identified key positions.)

They typically invest in ventures involved in industries or technologies with which they are personally familiar.

They often co-invest with trusted friends and business associates. In these situations, there is usually one

influential lead investor (“archangel”) those judgment is trusted by the rest of the group of angels.

Because of their business experience, many angels invest more than their money. They also seek active

involvement in the business, such as consulting and mentoring the entrepreneur. They often take bigger risks

or accept lower rewards when they are attracted to the non-financial characteristics of an entrepreneur’s

proposal.

Er E J Alexander, IEI concluded the session and memento presented by Abudul Shukur to Mrs. Salamma

Skaria.

     

     

Page 17: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

Session 3 (After Noon) NIIST-DSIR Common Research and Technology Development Hub for

Environmental Interventions in MSMEs

Dr V B Manilal, Senior Principle Scientist NIIST, presented an interesting subject regarding the waste

management in industries.

CRTDH (Common Research & Technology Development Hub) for Environmental Interventions in MSMEs

A joint venture By Department of Scientific and Industrial Research (DSIR) & CSIR-National Institute for

Interdisciplinary Science & Technology (NIIST),

MSME Sectors Facing Environmental Issues.

Minerals and mining sector Clay, beach sand, tile, brick, cement, glass

Agro processing sector Spices, coconut, oil seeds, herbal products, paddy, fruit & vegetable processing,

sugar, tea, dairy Marine products sector Fish products, fishmeal, fish oil

Traditional industries sector Coir, cashew, handloom, textiles Process industries sector Paper, rubber,

polymer, drugs, petroleum, distillery Environmental management companies Wastewater, Solid wastes and

Waste Air treatment Tourism, ports & harbors Municipal authorities and local bodies Large scale: better

environmental performance Why? Economy of scale allows investment in well designed treatment systems,

competent and trained specialist staff for environmental management Regulatory checks are easier in large

scale. Generally, MSME do not meet regulations. Individual treatment plants are costly and difficult to operate

and maintain. Tend to reduce capex, increase opex and save by not operating except during inspection.

Expected rapid growth of MSMEs in India

Environmental problems needs tailor made solutions Solutions are, therefore not readily available Less

resourceful for developing solutions/ technologies in-house Unable to comply with pollution control standards

Identified unmet R&D needs of MSME Rice Mills: No cost effective secondary treatment process Mango pulp

cluster: value recovery from waste Iced fish transport: Prevention of pollution by discharge Fish landing sites:

    

Page 18: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

Water pollution control MSW composting: Odour emissions control SME lime shell kilns: energy efficiency and

emissions controls Small towns MSW biodrying, transport to incineration centre: Technology development

Poultry farms, pig farms, dairies: anaerobic digestion standard design, performance criteria development

Slaughterhouses: waste utilization and disposal R&D Lubricating oil reclaim and distillation: VOC emissions

Vegetable oil extraction and refining: VOC emissions and wastewater treatment Thermal power: cooling pond

algae removal Fish meal factories: Emission factors for odour emissions and standard design of odour control

system Bone meal, bone crushing, tallow, ossein, gelatine units: Emission factors, treatment system design

Latex processing: effluent and air emissions treatment Plywood MSME cluster: VOC emissions and treatment

Recycle paper mills: Zero discharge treatment Clay processing: Zero discharge treatment Spice drying,

extraction and milling: process intervention to prevent smell emissions Apartment complexes: Modular

wastewater treatment and recycle units, Odour control systems Recycle rubber: Control of VOC emissions and

emission factors

Objectives of CRTDH : Process development and plant design for treating and managing pollution from

wastewater, wastes air and solid wastes from MSMEs Assisting quantification pollution factors Developing

modular systems and devices Testing facilities for environmental analysis Reducing resource consumption and

production cost CRTDH sustainability Provides Technologies and services to MSMEs at reasonable cost

CRTDH develops technologies for identified sectors with grants / plan projects for meeting development

expenses Revenue is ploughed back into technology development , maintenance and renewal of capital

equipment. National Institute for Interdisciplinary Science and Technology, Thiruvananthapuram, carries out

multidisciplinary R&D for regional industrial development. It has contributed to the development of technology

for spices, oilseeds, beach sand minerals, clay, brick, tile industries. Works on Technological solutions to

industrial wastewaters, household waste waters, MSW and household biowastes, air pollution. Process

development and engineering design for industrial environmental management Biological waste treatment

Anaerobic reactors, digesters Odour and VOC control EIA

Environmental Technology Infrastructure : 1.Engineering hall for carrying out pilot plant studies in wastewater

and solid waste treatment 2. Laboratory for chemical analysis 3. Microbiology and molecular biology

laboratory 4. Process Engineering laboratory 5. Dioxin analysis laboratory 6. NABET accredited facility for

chemical analysis

    

Page 19: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

Exclusive Facilities : Epifluorescent, microscope. Stereo microscope. Refrigerated centrifuge. High volume

sampler. Stack sampler. VA-Trace analyzer, Ion analyzer, HPLC,. UV-VIS, spectrophotometer, Flame

photometer, Micro GC, Thermocycler (PCR machine), Isothermal Calorimeter, Effluent sampler, COD analyser

, GC- packed column, Field multiparameter analyser, Ion Chromatographic system, Microwave digester, Open

channel flowmeter, TOC analyser , Fine particulate samplers 5 nos, Multiparameter water analysis meter .

NIIST provides pollution control technologies and environmental management guidance for regional industries.

NIIST has developed processes for odor control, anaerobic treatment of solid waste, industrial water

purification, bioremediation of toxic species in water waste. NIIST carries out Environment Impact Assessment

(EIA) studies.

Developments in the Relevant Field : 1) Odour control , 2) Household and Municipal Wastes treatment , 3)

Industrial effluent treatment , 4) Environmental impact analysis , 5) Water quality analysis, 6) Analysis and

remediation of perchlorate in water, 7) Anaerobic technology application in retting for extraction of plant fibres

, 8) Anaerobic technology application in production of white pepper from black and green pepper, 9)

Beneficiation and value addition of clay minerals

Microorganisms in the filter consume the odor molecules : Installed in:Fish meal factory, Ossein Factory,

Kochi Airport, To be installed in Municipal solid waste treatment plants,

In the current five year plan in CSIR network - Project, a Nation wide water sample testing - Will be done to

monitor this chemical.- In the same project the high incidence of - Hypothyroidism in Kerala will be studied - in

relation to perchlorate contamination -of ground water. - CSIR-NIIST has developed a bacterial process for

decontaminating this compound. Scale up. studies are in progress. Previous experience with market driven

R&D - Multi-disciplinary expertise - Process engineering capability to intervene in process - Cross-sectoral

knowledge fertilize.

Dr S Jose, IEI (Kollam) Chairman concluded the session and memento presented by Sri Sreeraj to Dr V B

Manilal.

    

Page 20: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

Session 4 (After Noon) Openings in Tourism and Port at Kollam

Rajendra Prasad, Secretary IEI introduced the speaker Mr P I Sheik Pareeth IAS, Director Tourism and Port,

Govt. of Kerala.

The history of 2nd largest port in Kerala dated back since it was founded by Mar Abo with sanction

from Udayamarthandavarma the Tamil king of Venad Kingdom in the year 825 AD. Once Kollam was

the most famous port city in India which served as the business hub of people

from China, MiddleEast, Deutch, Portugal, Brazil and other Eastern Mediterranean countries.

The Port is operational Since 9th November 2013 & 44 vessels called the port., Regular Coastal

Shipping Operation is happening between Gujarat- Kollam, Kolkata- Kollam & Kochi- Kollam Sector.

Handled Foreign O D cargo for Vikram Sarabhai Space Centre. The cargo mainly handled includes

sand, soda ash, tiles & sanitary wares. Total Cargo handled in 2013-14 is 6072 tonnes and 2014-15

is 17397 tonnes.

Wharf: 177m x12 m, Break Water: Leeward – 500m & Seaward – 2100m. Transit Shed : 2x 1450

Sq.Meters. Land area 10.6 acres. Basin – 100 Hector, basic depth : 8.5 m Entry Channel 8.5m.

Concrete yard – 16000 Sq Meters. Equipments 1. Cargo Handling Crane – LHM 120 2. Multi purpose

fork Lift 3. Reach stacker, 4 600 HP tug. Capacity: 50000 TEUs per annum.

Connectivity - -Roads -The Kollam district is well connected to other parts of Kerala and India through

the NH-47, NH-220 and NH-208. The National Highway 47 covers a distance of 57.4 km in the district

     

  

 

Page 21: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

and is only 2kms from the Thankassery port. The National Highways NH-208 (Kollam - Shencottai)

and NH 220 (Kollam - Theni) originate from Kollam.

Rail - The Kollam district is well connected to other parts of Kerala and India through the NH-47, NH-

220 and NH-208. The National Highway 47 covers a distance of 57.4 km in the district and is only

2kms from the Thankassery port. The National Highways NH-208 (Kollam - Shencottai) and NH 220

(Kollam - Theni) originate from Kollam. Kollam is an important railhead of the Southern Railways. The

Kollam railway station is considered to be one of the biggest railway stations in Kerala state. The

Trivandrum-Ernakulam line, which goes via Kottayam and Alappuzha, passes through Kollam. Kollam

is the terminal junction of Madras-Egmore-Kollam metre gauge line. The Chamber of commerce

has proposed a rail connectivity along with the port and the government has taken up this proposal in

a serious note.

Inland water ways : Kollam is well-connected through waterways with other parts of Kerala and this

stands to the advantage of the Thankassery port. The Centre has declared the Kollam-Kottapuram

stretch of West Coast Canal, along with Champakara and Udyogmandal Canals (205 km) in Kerala,

as National Waterway No 3 (NW3). The extension of the NW3 to Kovalam and further to Colachel is

under its active consideration.

Future of Kollam Port: Passenger cum Container Berth : Additional Berth for an estimated cost of

21 crores for passenger terminal. Cement Terminal: ABG cements has proposed to establish a

dedicated cement terminal at an estimated cost of Rs. 20 crores LPG Terminal : A feasibility study

for LPG terminal facility is progressing. Coastal Tourism Promotion: Coastal Passenger

transportation, Water sports centre and floating hotel is proposed. Bunkering service : Middle East

based M/s Horizon Energy Co has proposed to establish a bunkering facility at Kollam Port. Crew

Change Service: Crew Change and other supply services will be provided on PPP basis. Kollam-

Tuticorin Service: Discussions are on with Tuticorin Port Trust to initiate a coastal service to Kollam

to facilitate cashew container movement, which will come to the tune of 4000 TEUs per annum.

    

Page 22: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers

Cruise Tourism Prospects - Proposed Passenger Services: Kollam – Colombo Service - Aims at

diverting 50% of the 2.25 lakhs annual passenger movement in the sector through Cruise service to

Kollam & Kochi., Kollam – Lakshadweep Islands (Minicoy), Kollam – Maldives. Future Passenger

Service Routes Middle East, Europe, Scandinavian Nations

Sri Sreeraj C concluded the session and memento presented to Mr. P I Sheik Pareeth ny Mr Rajendra Prasda.

Valedictory Session

Dr. S Jose Chairman, IEI chaired in the valedictory session and Dr. Sasidharan Pilai Secretary General

welcomed the guests and audience. Sri Sheik Pareeth I A S delivered the Key note address. Certificates to the

participated students where distributed and Mr Rajendra Prasad given vote of thanks.

The sponsors of the seminar are: 1. Union bank, 2. Africa Products Limited, 3. Muthoot finance, 4. Canara

bank, 5. DORF KETAL, 6. Chungath Jewllers, 7. State Bank of Travancore.

The Co-Sponsors are: 1. Sharp Large & 3D, 2. The Kerala State Cashew Development Corporation Ltd, 3.

Capex, 4. Quilon Beach Hotel, 5. United Electrical Industries Ltd, 6. HLL Life care Limited, 8. State Bank of

India, 9. Central Bank, 10. MES College of Engineering and Management, 8. Corporatoion Bank, 11. Punjab

National Bank, 12. Syndicate Bank, 13. Bank of India, 14. Kerala Agro Machinery corporation, 15. Bank of

Baroda, 16. Federal Bank, 17. Quality Palace, 18 Rahbilitation Plantetion, 19. Wellworth Pipes.

*************** ****************

     

     

Page 23: One Day Seminar on Challenges and Opportunities …One Day Seminar on Challenges and Opportunities of Entrepreneurs The Quilon Management Association Jointly with Institution of engineers