DETAILED PROJECT REPORT FOR MARINE MEGA FOOD

PARK
AT
CHERTHALA, KERALA
 

UNDER THE MEGA FOOD PARKS SCHEME, MINISTRY OF FOOD PROCESSING INDUSTRIES
GOVERNMENT OF INDIA

SUBMITTED BY
Kerala State Industrial Development Corporation Ltd.
T.C. XI/266, Keston Road, Kowdiar,
Thiruvananthapuram-695 003

Prepared by

 
  

Table of Contents
1. Introduction ........................................................................................................................................... 1
1.1 The Indian Food Processing Industry - Status and Significance ................................................... 2
1.2 Segments in the FPI ...................................................................................................................... 4
1.3 Food Processing Segment & Their Share ..................................................................................... 4
1.4 Segmental Analysis ....................................................................................................................... 4
1.5 Growth Drivers ............................................................................................................................. 7
1.6 Government Initiatives .................................................................................................................. 7
1.7 Key Thrust Areas .......................................................................................................................... 8
1.8 The Mega Food Parks Scheme...................................................................................................... 9
1.9 Need for Mega Food Park in Kerala ........................................................................................... 10
1.10 Project objectives ........................................................................................................................ 13
1.10.1 Key Objectives of the project include: ................................................................................ 13
1.11 1.10 Brief outline of the project .................................................................................................. 13
2 Global Sea Food Processing Industry ................................................................................................. 17
2.1 Global Trade ............................................................................................................................... 19
2.2 Supply Chain and Distribution .................................................................................................... 20
2.3 Indian Seafood processing Industry ............................................................................................ 21
2.3.1 Indian Seafood Industry - An Overview ............................................................................. 21
2.3.2 Major export markets .......................................................................................................... 24
2.3.3 Major Port wise Exports ..................................................................................................... 25
3 Kerala: The State profile ..................................................................................................................... 30
3.1 Demography ................................................................................................................................ 30
3.2 Economy ..................................................................................................................................... 30
3.2.1 Sectoral Growth .................................................................................................................. 31
3.3 Physical infrastructure................................................................................................................. 33
3.3.1 Connectivity ........................................................................................................................ 33
4 The Kerala Sea Food Industry ............................................................................................................ 36
4.1 District Wise distribution of Coastal Lines in Kerala ................................................................. 36
4.2 Fishing Harbours in Kerala as on 31-03-2013 by Harbour Engineering Department................. 36
4.3 Export of Marine Products from Kerala...................................................................................... 37
4.4 Understanding the Value Chain for Marine/Inland Fish Sector in Kerala .................................. 38
5 Cluster Mapping.................................................................................................................................. 42
  

5.1 Rationale for selection of cluster ................................................................................................ 42

5.2 Details of catchment districts in the Park .................................................................................... 44
5.3 Identification of CPC and PPC ................................................................................................... 45
5.3.1 Identified location for CPC ................................................................................................. 45
5.3.2 Other available Infrastructure ............................................................................................. 46
5.3.3 Identified PPCs ................................................................................................................... 46
5.4 Potential Location of Collection Centers (CC) ........................................................................... 47
5.5 Availability of Major marine Produce ........................................................................................ 47
5.5.1 Major Marine Fishes found in the Project zone .................................................................. 49
5.6 Assessment of Surplus of Various Marine Produce .................................................................... 57
5.7 Estimated Raw Material Availability to the Food Park .............................................................. 57
5.8 SWOT Analysis of the Cluster.................................................................................................... 58
5.9 Generalizing the Margins in the Value Chain ............................................................................. 80
6 Promoter’s Profile ............................................................................................................................... 81
6.1 Single Window Clearance ........................................................................................................... 82
6.2 KSIDC-Industrial Growth Centers (IGCs) & Industrial Parks ................................................... 82
6.3 Financial Strength of the Promoter ............................................................................................. 82
6.4 Management Team of the Promoter............................................................................................ 83
7 Project Description.............................................................................................................................. 86
7.1 Identification of Major Activities/Operations ............................................................................. 86
7.2 Project Components .................................................................................................................... 86
7.2.1 Central Processing Centre ................................................................................................... 86
7.2.2 Primary Processing Centers ................................................................................................ 91
8 Site Analysis, Master Plan .................................................................................................................. 96
8.1 Site Location ............................................................................................................................... 96
8.1.1 Land Ownership .................................................................................................................. 96
8.1.2 Land Conversion and Approval .......................................................................................... 96
8.2 Site Configuration ....................................................................................................................... 96
8.2.1 Climatic and Meteorological Conditions ............................................................................ 97
8.2.2 Topography and Ground Profile ......................................................................................... 97
8.3 Existing On-Site Features ........................................................................................................... 99
8.4 Master Plan for the Park............................................................................................................ 100
8.4.1 Planning Concept .............................................................................................................. 100
  

8.4.2 Master Plan ....................................................................................................................... 100

8.4.3 Land Use Plan ................................................................................................................... 101
8.4.4 Development Guidelines ................................................................................................... 102
9 Proposed Enabling Infrastructure...................................................................................................... 104
9.1 Site Development & Road Network ......................................................................................... 104
9.1.1 Site Development, Boundary Wall and Gate House ......................................................... 104
9.1.2 Road Network ................................................................................................................... 105
9.1.3 Estimated Cost .................................................................................................................. 109
9.2 Effluent and Sewage Conveyance & Treatment System .......................................................... 120
9.2.1 Sewage Flows, Pipes and Manholes ................................................................................. 120
9.2.2 Sewage Treatment System ................................................................................................ 121
9.2.3 Effluent Collection System ............................................................................................... 123
9.2.4 Cost Estimates ................................................................................................................... 123
9.2.5 Electrical Transmission and Distribution .......................................................................... 126
9.2.6 Proposed Power Transmission & Distribution .................................................................. 127
9.2.7 Estimated Cost .................................................................................................................. 129
9.2.8 Signage & Landscaping .................................................................................................... 131
9.2.9 Telecommunication Infrastructure .................................................................................... 131
9.2.10 Solid Waste Management ................................................................................................. 131
9.2.11 Aggregate Cost of Common Infrastructure ....................................................................... 131
9.3 Core, Non-core Processing facilities & SDF ............................................................................ 132
9.3.1 Core Processing Facilities ................................................................................................. 132
9.4 Non Core Processing Facilities ................................................................................................. 133
9.4.1 Planning Concept .............................................................................................................. 133
9.4.2 Design Criteria .................................................................................................................. 133
9.4.3 Spatial Requirements & Areas – Administrative Components ......................................... 134
9.5 Area Analysis ............................................................................................................................ 134
9.5.1 Estimated Cost for Non Core Processing Facilities .......................................................... 135
9.5.2 Standard Design Factories (SDF) ..................................................................................... 135
10 Project Cost ................................................................................................................................... 138
10.1 Land Development and Basic Infrastructure............................................................................. 138
10.1.1 Civil Construction – Buildings ......................................................................................... 138
10.1.2 Plant and Machinery ......................................................................................................... 140
  

10.1.3 Miscellaneous Fixed Assets .............................................................................................. 142

10.1.4 Pre-operative Expenses ..................................................................................................... 143
10.1.5 Margin money for working capital ................................................................................... 144
10.2 Means of Finance ...................................................................................................................... 144
11 Project Financial Analysis ............................................................................................................ 145
11.1 Business plan ............................................................................................................................ 145
11.2 Operating Cost Assumptions .................................................................................................... 145
11.3 Power Cost ................................................................................................................................ 145
11.4 Fuel Cost ................................................................................................................................... 146
11.5 Water Cost ................................................................................................................................ 146
11.6 Employee Cost .......................................................................................................................... 146
11.7 Cost of Maintenance ................................................................................................................. 147
11.8 Cost of Insurance ...................................................................................................................... 147
11.9 Admin Overheads ..................................................................................................................... 147
11.10 Provision for Crates Replacement......................................................................................... 148
12 Financial Assumptions .................................................................................................................. 149
12.1 Taxes ......................................................................................................................................... 149
12.2 Depreciation Rates .................................................................................................................... 149
12.3 Interest....................................................................................................................................... 149
12.4 Revenue Assumptions ............................................................................................................... 149
12.4.1 Revenue from Standard Design Factory Sheds:................................................................ 150
12.4.2 Revenue from Deep Freezer ............................................................................................. 151
12.4.3 Revenue from Cold Storage .............................................................................................. 151
12.4.4 Revenue from pre-processing, sorting, grading facility at PPC ........................................ 152
12.4.5 Revenue from Dry Warehouse .......................................................................................... 152
12.4.6 Revenue from Deboning and Canning .............................................................................. 152
12.4.7 Revenue Quality Control & Food Testing Lab ................................................................. 152
12.4.8 Revenue from Crates ......................................................................................................... 153
12.4.9 Revenue from Reefer Vehicles ......................................................................................... 154
12.4.10 Revenue from Ice Flake Units at the PPCs ................................................................... 154
12.4.11 Revenue from Non-core infrastructure ......................................................................... 154
12.4.12 Basic Enabling Infrastructure........................................................................................ 155
12.4.13 Revenue for Effluent Treatment Processing ................................................................. 155
  

12.5 Infrastructure Management Fee ................................................................................................ 155

12.6 Capacity Utilization .................................................................................................................. 156
13 Financial Projections ..................................................................................................................... 157
13.1 Proposed Units in the Sea Food Park ........................................................................................ 160
14 Proposed Backward Integration Mechanism ................................................................................ 162
15 Project implementation framework and O&M ............................................................................. 164
15.1 Role of Implementing Agency .................................................................................................. 164
15.2 Role of Project Management Consultant (PMC) ...................................................................... 164
15.2.1 Project Planning, Engineering and Procurement .............................................................. 164
15.2.2 14.2.2 Project Management and Supervision during Project Construction ...................... 165
15.2.3 14.2.3 Release of Grant Funds .......................................................................................... 165
15.2.4 14.2.4 Liaison for External Infrastructure ......................................................................... 165
15.2.5 14.2.5 Other assistance to KSIDC..................................................................................... 165
15.3 Proposed contractual framework .............................................................................................. 166
15.4 Project implementation schedule .............................................................................................. 166
15.5 Proposed framework for O&M ................................................................................................. 167
15.6 14.6 Proposed framework for recovery of charges ................................................................... 168
16 Risk analysis and mitigation framework ....................................................................................... 170
16.1 Project development/construction risk ...................................................................................... 170
16.2 Operating period risk ................................................................................................................ 173
17 Quotation Summary Sheet ............................................................................................................ 176
18 List of Annexure provided ............................................................................................................ 178 
 

 
Table 1: Processing Levels across Various Segments .................................................................................. 3
Table 2 Segment Analysis ............................................................................................................................ 4
Table 3: Port wise Exports from India ........................................................................................................ 26
Table 4: Types of processors in India for Sea Food.................................................................................... 28
Table 5: Economic Stattus .......................................................................................................................... 31
Table 6: Distroct wise contribution ............................................................................................................. 32
Table 7: District wise Annual Fish Production in Kerala 2013-14 ............................................................. 37
Table 8: Shrimp Value Chain ..................................................................................................................... 40
Table 9 Details regarding PPCs ................................................................................................................. 46
Table 10 District wise Marine Fish Annual Production 2013-14 ............................................................... 48
Table 11: Raw Material availability for the park ........................................................................................ 57
Table 12: Civil Works for CPC .................................................................................................................. 87
  

Table 13: Civil Works for Non-Core infrastructure at CPC ....................................................................... 90

Table 14: PPC Area .................................................................................................................................... 91
Table 15: Core Processing at PPC .............................................................................................................. 92
Table 16: Infrastructure Components ....................................................................................................... 101
Table 17: Land Use Distribution............................................................................................................... 101
Table 18: Estimated Cost of Site Development and Boundary Wall ........................................................ 104
Table 19: Thickness of Pavement Layers ................................................................................................. 105
Table 20: Cost Estimate for Road Network .............................................................................................. 109
Table 21: Percentage of Imperviousness .................................................................................................. 110
Table 22: Cost of Storm Water Drainage Works ...................................................................................... 112
Table 23: Calculation for Water Requirement .......................................................................................... 114
Table 24: Water Demand .......................................................................................................................... 115
Table 25: Design Parameters for Distribution System.............................................................................. 117
Table 26: Estimated Cost of Water Supply System .................................................................................. 118
Table 27: Details of Inspection Chamber/Manhole .................................................................................. 121
Table 28: Expected Characteristics of Sewage ......................................................................................... 121
Table 29: Estimated Cost of Sewage Collection System .......................................................................... 123
Table 30: Estimated Cost of Electrical Distribution & Street Lighting .................................................... 129
Table 31: Estimated Cost of Sewage Collection System .......................................................................... 131
Table 32: Block Cost Estimates for Common Infrastructure .................................................................... 132
Table 33 Core processing facilities ........................................................................................................... 133
Table 34: Details of Built up Areas for Non Core Processing Facilities .................................................. 134
Table 35: Estimated Cost for Non Core Processing Facilities .................................................................. 135
Table 36: Block Cost Estimates for Standard Design Factories ............................................................... 136
Table 37: Estimated Cost for Primary Processing Centers ....................................................................... 137
Table 38: Project Cost Details .................................................................................................................. 138
Table 39 Total Cost of Civil Construction ................................................................................................ 138
Table 40: Cost of Civil for CPC and PPC ................................................................................................. 139
Table 41: Cost of Plant & Machinery at CPC & PPC............................................................................... 141
Table 42: Miscellaneous Fixed Assets ...................................................................................................... 142
Table 43: Pre-operative Expenses ............................................................................................................. 143
Table 44: Margin Money Calculation ....................................................................................................... 144
Table 45: Means of Finance ...................................................................................................................... 144
Table 46: Annual Power Consumption Cost at Full Capacity .................................................................. 145
Table 47: Annual Water Cost.................................................................................................................... 146
Table 48 Employee Cost .......................................................................................................................... 146
Table 49 Admin Overhead ........................................................................................................................ 147
Table 50 Crates Replacement Rate ........................................................................................................... 148
Table 51: Rates of Depreciation................................................................................................................ 149
Table 52: Revenue from lease rentals ....................................................................................................... 149
Table 53: Revenue from SDFs .................................................................................................................. 150
Table 54: Revenue from Deep Freezer ..................................................................................................... 151
Table 55: Revenue from Cold Storage ...................................................................................................... 151
Table 56: Revenue from Pre-Processing at PPC ....................................................................................... 152
  

Table 57: Revenue from Dry Warehouse ................................................................................................. 152

Table 58: Revenue from De-boning & Canning ....................................................................................... 152
Table 59: Revenue from Lab at CPC ........................................................................................................ 153
Table 60: Revenue from lab at PPCs (3 Nos.) .......................................................................................... 153
Table 61: Revenue from Crates ................................................................................................................ 153
Table 62: Revenue from Reefer Vehicles ................................................................................................. 154
Table 63: Revenue from Ice flake units .................................................................................................... 154
Table 64: Revenue from Non-core Infrastructure ..................................................................................... 154
Table 65: Revenue from Basic enabling Infrastructure ............................................................................ 155
Table 66: Revenue from ETP ................................................................................................................... 155
Table 67: Management Fee ....................................................................................................................... 155
Table 68: Capacity Utilization .................................................................................................................. 156
Table 69: Projected Profit and Loss Account ........................................................................................... 157
Table 71: Projected Cash Flow Statement ................................................................................................ 158
Table 72: Projected Balance Sheet............................................................................................................ 159
Table 73: Projected Key Performance Indicators ..................................................................................... 159
Table 74: Types of Units........................................................................................................................... 160
Table 75: Project Risk & Mitigation Framework ..................................................................................... 170
Table 76: Operating Risk Mitigation & Framework ................................................................................. 173 

LIST OF FIGURES
Figure 1: Size of Indian Food Industry .......................................................................................................................... 3
Figure 2 Indian Food Processing Industry Size (US$ Bn) ............................................................................................. 3
Figure 3: Segments in India Food Processing Industry ................................................................................................. 4
Figure 4: Demand Drivers of Indian Food Processing Industry .................................................................................... 7
Figure 5: Project Architecture ..................................................................................................................................... 16
Figure 6: Top 10 Seafood consuming countries .......................................................................................................... 18
Figure 7: Percentage Growth in Consumption............................................................................................................. 18
Figure 8: Fishery Consumption and Market size ......................................................................................................... 19
Figure 9: Trend in exporting countries ....................................................................................................................... 20
Figure 10: Trend in Importing Countries ..................................................................................................................... 20
Figure 11: Global Seafood Value Chain Structure ...................................................................................................... 21
Figure 12: Comparison by items between 2012-13 and 2013-14 ................................................................................ 23
Figure 13: Price trend item wise .................................................................................................................................. 24
Figure 14: Major Export Markets ................................................................................................................................ 25
Figure 15: State wise distribution of processing units ................................................................................................. 29
Figure 16 State Economy CAGR ................................................................................................................................ 31
Figure 17: Primary sector CAGR ................................................................................................................................ 32
Figure 18 Secondary Sector CAGR ............................................................................................................................. 32
Figure 19 Tertiary Sector CAGR ................................................................................................................................. 33
Figure 20: Overall Value Chain of Marine/Fish product in Kerala ............................................................................. 39
Figure 21: Export percentage of various sea foods from Kerala ................................................................................. 41
Figure 22: EU approved sea food processing units in Kerala ...................................................................................... 41
Figure 23 District wise Elasmobranchs ....................................................................................................................... 50
Figure 24 District wise oil sardines Production ........................................................................................................... 50
Figure 25 District wise lesser Sardiness Production .................................................................................................... 51
  

Figure 26 District wise Anchoviella Production .......................................................................................................... 51

Figure 27 District wise Other Clupeids Production ..................................................................................................... 52
Figure 28 District wise Perches Production ................................................................................................................. 52
Figure 29 District wise Sciaenids Production .............................................................................................................. 53
Figure 30 District wise Ribbon Fish Production.......................................................................................................... 53
Figure 31 District wise Caranx Production .................................................................................................................. 54
Figure 32 District wise Mackerel Production .............................................................................................................. 54
Figure 33 District wise sole Production ....................................................................................................................... 55
Figure 34 District wise Penaeid Production................................................................................................................. 55
Figure 35 District wise Stomatopodes Production....................................................................................................... 56
Figure 36 District wise Cephalopodes Production....................................................................................................... 56
Figure 37: Organogram of Promoter's Organisation .................................................................................................... 85
Figure 38: Processing of Deboning ............................................................................................................................. 89
Figure 39: Benefits of Ice Flakes ................................................................................................................................. 94
Figure 1 Location of the Proposed Mega Food Park ................................................................................................... 96
Figure 41 Survey Plan of the Food Park ...................................................................................................................... 98
Figure 42 Existing onsite features ............................................................................................................................... 99
Figure 43 Master Plan Layout of the Food Park ........................................................................................................ 103
Figure 44: Layout Plan of Roads ............................................................................................................................... 107
Figure 45 Typical Cross sections of the proposed Roads .......................................................................................... 108
Figure 46 Storm Water Drain Layout ........................................................................................................................ 113
Figure 47 Water Distribution Network ...................................................................................................................... 119
Figure 48 Sewage Network Layout Plan ................................................................................................................... 122
Figure 49 Industrial Effluent Collection System Layout Plan ................................................................................... 125
Figure 50 Layout of Power Distribution System ....................................................................................................... 130
Figure 40: A diagrammatic summary of the various procurement channels to be explored and adopted by KSIDC 162
Figure 41: PMC Role ................................................................................................................................................. 165
Figure 42: Project Implementation Schedule............................................................................................................. 166
Figure 43 Proposed management structure ................................................................................................................ 168 

  

1. Introduction
Agriculture and allied activities form the core of the Indian economy. Approximately two-third of the
country’s population is dependent on agriculture either directly or indirectly. This strong agricultural base
coupled with economic growth holds significant potential for the Indian food processing industry, an
industry that provides a strong link between agricultural produce and end consumers. The total Share of
Agriculture & Allied Sectors (Including agriculture, livestock, and forestry and fishery sub sectors) in
terms of percentage of GDP was 13.9 percent during 2013-14 at 2004-05 prices. The country is also the
largest producer, consumer and exporter of spices and spice products in the world and overall in farm and
agriculture outputs, it is ranked second. From canned, dairy, processed, frozen food to fisheries, meat,
poultry, and food grains the Indian agro industry has plenty of areas to choose for business. There are
multiple factors that have predominantly worked in tandem leading to the growth of the Indian agriculture
sector in recent years. These include growth in income and consumption, growth in food processing
sector and increase in agricultural exports. Also, increasing private participation in Indian agriculture,
growing organic farming and usage of information technology are the trends that are being witnessed by
the agriculture industry. Recognizing the importance of Agriculture Sector, there have been many steps
taken by Government including the allied sector also. In these, the Fishery sector including Marine
Fishery also has invited attention of the Government. Some of the schemes focusing on the Fisheries
including Inland, Aquaculture and Marine are as follows:

1. Centrally Sponsored Scheme on Development of Inland Fisheries and Aquaculture in states/UTs

during 2015-16.
2. Centrally Sponsored Scheme on Development of Marine fisheries, Infrastructure and Post
Harvest Operations as Central Sector Scheme during 2015-16.
3. Central Sector Scheme on Strengthening of Database and Geographical Information System of
the Fisheries Sector during 2015-16
4. Central Sector Scheme "National Scheme of Welfare of Fishermen" in states/UT during 2015-16.
5. Implementation of central Sector Scheme "National Scheme of Welfare of Fishermen" in
states/UT during 2015-16
1
The Fishery sector in India is expected to touch a figure of around Rs. 68,000 Crore by 2015. It is
growing at a compound annual growth rate (CAGR) of about 7%. India's marine and fish industry is
likely to reach Rs 67,800 crore by 2015 from the current level of nearly Rs 53,000 crore. The processed
segment comprises of about Rs 8,000 crore which is over 15% of total size of the domestic marine and
fish industry, according to a study titled 'Indian Marine & Fish Industry'. The fish production in India is
likely to cross 12 million tonne by 2015 from the current level of about 9.3 million tonnes. Captured fish
accounts for about 65% of total fish production, while aquaculture accounts for over 30% of annual fish
production, said the study. India is the second largest fish producer in the world after China and accounts
for nearly 6% of global fish production. Over 8,000 kilometers of coastline, 4 million hectares of
reservoirs, 2 million hectares of brackish water and nearly 51,000 square kilometers of continental shelf
area offers a plethora of opportunities for the growth of marine and fish industry of India. There is a huge
scope for investments in packaged marine processing plant, operations in preservation, processing and

                                                            
1
 http://economictimes.indiatimes.com/industry/cons-products/food/marine-and-fish-industry-to-reach-rs-68k-crore-by-2015-
assocham/articleshow/10841151.cms 

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export of coastal fish for the private sector as it holds vast, untapped marine resources with a great export
potential. Nearly 30% of marine and fish produced domestically is exported annually. Processing of fish
into canned and frozen forms is carried out almost entirely for the export market. The export earnings in
2010-11 reached nearly 3 billion dollars (about Rs 15,000 crore), recording a growth of about 20%
compared to the previous year. Vannamei shrimp, black tiger shrimp, cuttlefish, lobster, clams, fish fillets
and squid are certain products that provide opportunities for export of marine items from India. The
seafood exports from India are likely to touch 4.7 billion dollars (about Rs 23,500 crore) by 2013 from
2.8 billion dollars (about Rs 14,000 crore) in 2010-11 through value addition, expansion of aquaculture,
technological upgradation and by tapping unexplored resources, according to an Assocham study titled
'Indian Seafood Exports Market: 2014.' The units in the fish processing sector are largely small scale
proprietary, partnership firms and fishermen co-operatives. There has been spectacular growth in the
marine fisheries sector due to well developed harvest and post harvest infrastructure and increased
demand for seafood both in the domestic and export markets. There is scope for developing technology
for value addition and infrastructure for exports in the form of marine products based food parks through
public private partnership. Besides, there is an increased demand for processed and ready-to-eat marine
products in the domestic market and as such Assocham suggests the government to encourage foreign
investment in infrastructure for distribution and storage. Andhra Pradesh, Gujarat, Karnataka, Kerela,
Maharashtra, Odisha, Tamil Nadu and West Bengal are certain key states that have huge potential to
enhance India's seafood export potential.

1.1 The Indian Food Processing Industry ‐ Status and Significance

Food Processing Industry (FPI) in India is a sunrise sector that has gained prominence in the recent years.
Easy availability of raw materials, changing lifestyles and favourable fiscal policies has given a
considerable push to the industry’s growth. FPI serves as a vital link between the agriculture and
manufacturing sectors of the economy. Strengthening this link is critical to reduce wastage of agricultural
raw materials, improve the value of agricultural produce by increasing shelf-life as well as by fortifying
the nutritive value of the food products and ensure remunerative prices to farmers as well as affordable
prices to consumers. India has a population of one hundred crore plus and feeding this large a population
calls for a strong FPI. The industry also assumes importance in the national economy due to the immense
employment generation opportunities it offers and the export revenue it earns. India is one of the leading
exporters of the processed food products. It has a competitive edge over other countries due to the wide
variety of crops cultivated as a result of geographical and climatic diversity. Government too is trying to
support the industry by formulating favourable policies. With adequate government focus on the
infrastructural support, research and development and technological innovation in this sector, India could
alleviate its domestic concerns on food security, malnutrition and food inflation.

The sector is poised for enormous growth and already contributes about 12.7 percent of the country's
GDP and provides nearly 60 percent of all job opportunities by directly employing around 1.6 million
workers. The industry is the 5th largest sector in the country in terms of production, consumption, export
and growth. The worth of the Indian processed foods industry was USD 99 billion in 2010 and it is
growing at the rate of 13 percent per annum. .

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Figure 1: Size of Indian Food Industry

CAGR 10%

Source: Websites of Ministry of Food Processing Industries and India

Brand Equity Foundation
Figure 2 Indian Food Processing Industry Size (US$ Bn)

According to the Ministry of Food Processing Industries, the industry contributes ~9% to India’s GDP
and had a share of 6% in the total industrial production. The share of food and agro-processing industries
in total number of enterprises was a huge 19%.

The role of the Indian government has been instrumental in the growth and development of the industry.
The government through the Ministry of Food Processing Industries (MoFPI) is making all efforts to
encourage investments in the sector. It has approved proposals for joint ventures (JVs), foreign
collaborations, industrial licences and 100% export oriented units.

Between 1980 and 2007, India’s share of the global food exports has increased from 1.1% to 1.4%, with
most of the increase coming in the last decade. India exports to proximate geographies like South Asia
(34%), Middle East (29%), East Asia (17%), Western Europe (10%) and US and Canada a paltry 1%.

According to the data reported, the Indian food and grocery market is the world’s sixth largest, with retail
contributing 70 per cent of the sales. It is projected to grow at the rate of 104%, touching US$ 482 billion
by 2020. Indian food service industry is expected to reach US$ 78 billion by 2018.

Despite having several advantages, the level of food processing across various segments is very low in
India which means that India accounts for only 1.5% of the global processed food trade. The table below
shows the processing levels across segments.

Table 1: Processing Levels across Various Segments

Processing
Segment Comments
% in India
Fruits and Vegetables 2.2% USA (65%), China (23%)
Poultry 6% 60-70% in developed nations

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Milk 35% 60-75% in developed nations
Source: Websites of Ministry of Food Processing Industries and India Brand Equity Foundation

1.2 Segments in the FPI

The food processing sector comprises of three segments based on the levels of processing

Primary processing of food: Primary processing of food comprises of sorting, grading and packaging of
fruits and vegetables, milk, rice, spices, etc.

Secondary Processing of Food: Secondary processing of food comprises of re-shaping of food for ease
of consumption. It includes flour, oil cakes, tea leaf and beverages powder etc. Together with primary
processing, the two segments constitute around 62% of the processed foods in value terms.

Tertiary Processing of Food (or) Value Added Food Segment: Value added food segment includes
processed fruits and vegetables, juices, jam & jelly etc and holds around 38 % share in the total processed
food market

1.3 Food Processing Segment & Their Share

Based on the raw material used the industry further divided in various sector are mentioned below

Figure 3: Segments in India Food Processing Industry

Source: Websites of Ministry of Food Processing Industries and

India Brand Equity Foundation

1.4 Segmental Analysis

Table 2 Segment Analysis

S.
Segment Opportunities Market Structure Key Players
No.

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An almost equal
India is the world’s 2nd division of the market
largest producer of fruits between organized
and vegetables and unorganized
players
Mostly SMEs are
Presently 10% of the
operating in both the
products in this segment are Organized players
organized and
processed. It is expected mostly produce juices
Fruits and unorganized
1 that the processing will and pulp products;
Vegetables segments. Some
grow to 25% by 2025 while unorganized
brands include
players have a foothold
Mothers Recipe, Tops
Highly export oriented in traditional areas like
etc.
segment as the domestic pickles, sauces and
penetration is low. splashes
Domestic demand is
expected to grow Pickles hold the major
share in this segment
Third largest producer of The units are largely
fish Small scale organized small scale
Second largest inland fish sector rules this proprietary/
2 Fisheries
producer segment partnership firms, or
An entirely export oriented fishermen
segment cooperatives
Largest producer of buffalo Brands such as
meat Venky’s and Godrej’s

Second largest producer of Real Chicken are

goat meat. Only 1-2% of popular in India
the raw meat is
converted into value added
products, remaining
purchased in raw form for
The unorganized
Meat and domestic consumption
3 sector dominates this
Poultry
segment
The processed food is
mainly exported to
Maldives and Oman.

Eggs and Broilers are

leading the growth in this
segment with a growth rate
of 16% and 20%
respectively
Largest Producer of Milk This segment is Mostly cooperatives
and Milk Products controlled by the such as AMUL, Nestle
unorganized market and Britannia
Milk & India shelters the maximum have shifted their
4
Dairy number of cows and Organized market holds focus on this segment
buffaloes across the world less than 15% of the
share

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Estimated size of
market is ` 100 crore

India is a self sufficient

country in terms of grain
production Most of the milling
Approx. 80% of the
happens in the SME
market is controlled by
Largest producer of rice in segment and is
the unorganized sector
the world, but most of it is unorganized
Grains and
5 consumed domestically
Cereals his sector also lacks
Some of the big
the technological up
Rice, wheat and pulses players in this industry
gradations resulting in
milling is the most are R S Rice Mill, LT
higher wastages
important food Foods Limited etc.
processing activity in this
segment
The fastest growing
segment in India, which
include

Packaged Food
Aerated Soft Drinks
Packaged Drinking Water
Alcoholic Beverages
A highly organized
The packaged food consists
segment
of snacks, chips, namkeens
and bakery foods Pepsi, Coca Cola,
Consumers World market leaders
6 Nestle, Britannia,
Goods operate in the aerated
The segment is growing at Dabur, ITC
soft drinks segment and
approx. 6-7% annually
alcoholic beverages
segment
The largest component of
the segment is tea followed
by packed biscuits and then
by
aerated drinks

India is the third largest

market of alcoholic
beverages
Source: Onicra Credit Rating Agency of India

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1.5 Growth Drivers
Rapid increase in disposable income in India coupled with changed attitudes towards health and hygiene
is driving growth of processed food in India. Today, there is higher affordability and greater willingness
amongst consumers to pay for various needs originating from modern living. Increasing urbanization,
hectic lifestyles, rising number of nuclear families and increasing proportion of working women is
leading to an increased demand for convenience. Indian consumers in larger numbers are opting for
greater brought-into-home food consumption.

Simultaneously, growing brand consciousness, exposure to Western products, introduction of food

categories that are new to the Indian palate and new product variants catering to diversified tastes are
ensuring higher acceptability of processed food products. All these factors create a strong case for the
accelerated growth of processed foods.

Figure 4: Demand Drivers of Indian Food Processing Industry

This is indicate that the Indian processed food industry’s growth drivers are robust and indicate that the
sector holds strong potential to improve on its current growth in the future, provided affordability is
further improved and a consistent export policy is adopted.

1.6 Government Initiatives

In order to promote food processing industries, increase level of processing and exploit the potential of
domestic and international market for processed food products, there have been many initiatives have
been taken by the Government. Some of the major initiatives taken by the Government of India to
improve the food processing sector in India are as follows:

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• Inaugurated the first of its kind Rs 136 crore (US$ 21.76 million) mega international food park at
Dabwala Kalan, Punjab.

• Introducing a scheme for human resource development (HRD) in the food processing sector. The
HRD scheme is being implemented through State Governments under the National Mission on
Food Processing. The scheme has the following four components:

• Creation of infrastructure facilities for degree/diploma courses in food processing sector

ƒ Entrepreneurship Development Programme (EDP)

ƒ Food Processing Training Centres (FPTC)

ƒ Training at recognised institutions at State/National level

• The Food Safety and Standards Authority of India (FSSAI) under the Ministry of Health and
Family Welfare has issued the Food Safety and Standards (Food Product Standards and Food
Additives) Regulations, 2011 and the Food Safety and Standards (Contaminants, Toxins and
Residues) Regulations, 2011 which prescribe the quality and safety standards, respectively for
food products.

• The Ministry of Food Processing Industries has taken some new initiatives to develop the food
processing sector which will also help to enhance the incomes of farmers and export of agro and
processed foods among others. The government has also approved the setting up of five numbers
of Mega Food Parks in the states of Bihar, Maharashtra, Himachal Pradesh and Chattisgarh.

• Special fund of Rs. 2000 crore set up in NABARD, which was announced in the Budget of 2014-
15 to provide affordable credit to Agro-processing units.

• Reduction in excise duty from 10% to 6% for Food Processing machinery announced in the
Budget 2014-15

• Identifying APMC issues affecting food processing for appropriate amendments in APMC Act

• Help desk “Investors Portal” has been set up to assist the prospective investors/ entrepreneurs to
facilitate investments in the Food Processing sector.

• A Food map of India identifying surplus raw material has been prepared and uploaded on the
Ministry website. Idea is to identify the surplus and deficient areas in the country of various
agricultural and horticultural produce so as to plan processing clusters by means of setting up
processing facilities under current schemes. (xii) Sectoral Skill Council on Food Processing
working in Federation of Indian Chamber of Commerce and Industry (FICCI).

1.7 Key Thrust Areas

Enhance and stabilize the income level of the farmers, providing greater assurance in terms of safety and
quality of food to consumers, Promote growth and competitiveness within the food processing industry,
Achieve integration of the food processing infrastructure from farm to market and Have a transparent and
industry friendly regulatory regime.

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The 11th Plan of the Ministry of Food Processing Industries, Govt. of India saw significant progress of
the food processing sector in terms of both approach and scale of the Government programmes, with
sufficient stress on appropriate backward linkages and emphasis on synergy between production and
processing. Infrastructure creation specific to the sector was the underlying philosophy of the 11th Plan.

The 12th Plan Document (period: 2012-2017) borrows heavily from the learning of the 11th Plan period.
While the emphasis on infrastructure development shall continue in this plan period too, the driving
principles would be inclusiveness of growth, food security, innovation, food safety and quality, enterprise
promotion and skill development.

Above all, the central theme of the 12th Plan has been the decentralization of MoFPI’s initiatives with an
aim at making food processing a truly national initiative and ensuring maximum participation from State
Governments. It is envisaged that decentralization would help to create better awareness for need and
significance of food processing sector in rural areas, facilitate necessary linkages between initiatives in
agricultural sector and promotion of food processing units and ensure greater participation of state
governments and district administrations in various programmes..

To conclude, it has been observed that the Govt. and its efforts have been proactive so as to ensure faster
growth of the sector.

1.8 The Mega Food Parks Scheme

The Mega Food Parks Scheme (MFPS), a flagship program of the Ministry of Food Processing Industries
(MFPI), Govt. of India, approved during the 11th five year plan, aims at accelerating growth of food
processing industry in the country through facilitating establishment of strong food processing
infrastructure backed by an efficient supply chain. It is also targeted towards achievement of the Vision
2015 of MFPI, which proposes to increase the processing of perishables from 6% to 20%, value addition
from 20% to 35% and share in global food trade from 1.5% to 3% by the end of year 2015.

The key objectives of the scheme are outlined as follows:

• Provide state of the art infrastructure for food processing in the country in selected clusters to be
identified in a demand driven manner.
• Ensure value addition of agricultural commodities including poultry, meat, dairy, fisheries etc.
• Establish a sustainable raw material supply chain for each cluster
• Facilitate induction of latest technology
• Address issues of small farm size and small and medium nature of processing industries through a
cluster approach with stakeholders managing the supply chain.
• Provide an institutional mechanism for producers, processors, and retailers to work together to
build in integrated supply chain from farm to retail.

The salient features of the Scheme are outlined as follows:

• The MFPS envisages a cluster-based demand driven approach for developing decentralized
infrastructure including farm proximate facilities such as primary processing centers (PPC) and

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collection centers (CCs) and a Central Processing Centre (CPC). The CPC would have need-
based common infrastructure like warehouses, cold storage including CA & MA, IQF, Tetra
Pack, ripening chamber, Quality Control Labs and R&D Facility including incubation center etc.
It would also have basic enabling infrastructure like road, water, power, ETP & STP etc. The
grant assistance shall be utilized exclusively towards creation of common infrastructure in CPC
and PPCs in the park. Such facilities are expected to complement the processing activities of the
units proposed to be set up at the CPC in the park.
• The supply chain will establish on-farm Primary Processing Centre cum cold chain facilities for
aggregation of the produce at village level, which will be linked to the retail as well as to CPC
through appropriate produce aggregation facility and collection centre cum cold chain and reefer
transportation net works.
• The food processing units would be located at CPC. The developed plots at the CPC shall be
leased out to them on a long term lease basis. The processing units that can be set up in the Parks
are expected to be in line with the availability of various processable raw materials in the zone of
influence. Such units can avail the benefits of common facilities on a user fee basis.
• The Mega Food Park is proposed to be owned by the Special Purpose Vehicle who own, operate
and manage common infrastructure established within the Park and will also provide requisite
technical and extension services. Thus, the Central Processing Centers, Primary Processing
Centers and Collection Centers, backward linkage mechanism and front end linkages will be
owned and managed by the promoter.

1.9 Need for Mega Food Park in Kerala

The coast of Kerala constitutes approximately 10 percent of India’s total coastline which provide
opportunities in traditional fishing in inshore waters from ages. The coastline of Kerala, considered as the
Exclusive Economic Zone (EEZ) which extends up to 200 nautical miles 2 i.e around 370 kms far beyond
the continental shelf offering huge potential for captive fishery industry for Kerala. The maximum
utilization of this continental shelf is only in 50m depth ie. around 22 km from the coastline which is only
around 6% currently. It may be noted here that presence of large Marine Processing Infrastructure in the
state would further provide an impetus to this sector.

The Southwest coastal (SWC) has certain unique features that influence the fishery fluctuations of the
important commercial species to a great extent. The area is subjected to two monsoons viz. the south-west
monsoon (Edvapathi) and the north-east monsoon (Thulavarsham). The southwest monsoon coincides
with the period of upwelling and phytoplankton bloom, which results in a large number of fish and
crustaceans in the area. The South – west monsoon coupled with northwesterly winds and the oceanic
currents cause upwelling along the coast brings the nutrient rich deep waters to the surface, which
flourishes the primary production and followed by a good fishery. Kerala coast have major fisheries of the
elasmobranches, cat fish, shrimps, cuttle fish, sardines, anchovilla, saurida&saurus, perches, sciaenids,
mackerels, ribbon fish, seer fish, tunis, prawn, anchovies, soles, sharks, rays, etc. Kerala ranks second in
marine fish production of India forming nearly 25% (average 5.75 lakh tonnes) of the total annual
production. Currently the annual export of marine products from the state yields to the nation a foreign
exchange of Rs. 1,100 crores. There has been spectacular growth in the marine fisheries sector of the
state due to fisheries friendly government policies, well developed harvest and post harvest infrastructure
                                                            
2
 1 Nautical Mile = 1.8 Km 

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and increased demand for seafood both in the domestic and export markets. Kerala has been in the
forefront in absorbing innovative and new technologies in fishing practices and adoption of these
technologies has led to marine fisheries to take a complex structure.

The growing demand resulted in fishing intensification, extension of fishing grounds, increase in overall
length, fish holding capacity of the trawlers, fishing effort in terms of fishing hours through multi-day
fishing by the mechanized sector and enhanced fishing operations by the motorized sector especially the
ring seiners. The intensification of mechanized fishing, perceived as a threat to the sustenance of
traditional fisheries sector and resource sustainability, culminated in the regulation of mechanized fishing
activities through the Kerala Marine Fisheries Regulation Act 1980, and thereby enforced a ban on
bottom trawling during the monsoon season since 1988.

And also the introduction of ban on trawling coincided with introduction of the highly efficient mass
harvesting gear, namely the ringseine, by the traditional motorised sector, which resulted in a quantum
leap in the total pelagic fish production. In the context of globalization of trade, growing demand for
seafood, enormous pressure on the resources and increased awareness of ecosystem-based management
and eco-labeling, there is an urgent need for developing a management regime based on the principles of
responsible fishing for ensuring livelihood security, resource sustainability, economic efficiency and
ecosystem integrity.

Fishing industry which has grown substantially in the last four decades with the continuous intensification
of fishing effort, contributes significantly to economic, social and nutritional well being of the people.

Major technological advancements in fishing crafts and gears during the past four decades of Kerala are
as follows:

1. developments in craft technology and mechanization of propulsion, gear and catch handling

2. introduction of synthetic gear materials

3. developments in acoustic fish detection and satellite-based remote sensing techniques

4. advances in electronic navigation and position fixing equipment

5. Awareness of the need for responsible fishing to ensure sustainability of the resources, protection
of the biodiversity and environmental safety and energy efficiency.

Major technological changes that have taken place in the capture fisheries of Kerala are the

1. Introduction and popularization of synthetic fishing gear materials.

2. Introduction of trawling in mid1950s

3. Improvement in efficiency and diversification of trawls, purse seines, gillnets and lines, for
mechanized sector.

4. Expansion of fishing grounds for harvesting deep sea fishing for deeps sea prawns, lobsters and
cephalopods.

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5. Continuous improvement in size, endurance, installed engine power, winch capacities, fish-hold,
freshwater and fuel capacities of mechanized trawlers to enable multi-day fishing, since mid
1980s.

6. Improvement in size, endurance, installed engine power, fish-hold, freshwater and fuel capacities
of mechanized gillnetters/liners to enable multi-day, distant water fishing.

7. Adoption of modern technologies such as echo sounder and GPS in a wider scale over the last
decade.

8. Motorization of traditional fishing crafts and expansion in fishing grounds

9. Improvement of traditional fishing units, in terms of craft modernization, gear materials, gear
efficiency and dimensions.

10. Introduction of ring seines in commercial fishing in 1986

11. Displacement of traditional boat seines by ring seines.

12. Introduction of mini-trawling in mid-1987 and its subsequent proliferation, targeting near-shore
shrimp and fish resources.

13. Introduction of ring seines with inboard engines and purse line haulers in 1999 and continuous
increase in numbers.

Fishing industry occupies an important role in the economy of Kerala. According to the available
estimates of the potential fishery resources of the west coast, particularly in South West coasts, Kerala
possesses the richest fishing grounds in the area. The state exports fish products worth approximately
Rupees 1,100 Crores and has domestic sales worth Rupees 600 crore annually, accounting for roughly
three per cent of the state revenue. Kerala’s share in the national marine fish production is about 20
%.The total registered fishing fleet in the state consists of about 23129 motorised crafts, 2986 mechanised
and 1673 non-motorised crafts.As against the estimated maximum sustainable yield of about 7.5 lakh
metric tonnes, the present level of fish production in the state is about 5.53 lakhs metric tonnes. (2011-
12). It is a fact that, the socio-economic condition of the fisher folk in the State is pitiable, when
compared to the general section of the population. Backwardness is the hall mark of fishermen. They are
in the grip of subsistence economy and indebtedness in the normal aspects of their life. Many reasons
could be accounted for this state of affairs. Among social, economic and educational and such other
reasons, the depletion of fishery wealth is a major cause.It is also added that 79% of fish worker families
have an annual income of less than Rs 6000/-. Hence almost all fisher folk are poor. In addition to
economics, poverty is something which is related to the feeling of lack of power and resources.

Thus in the view of above, The implementation of the Mega Food Park project in Kerala shall go a
long way in ensuring the above objectives are met and also help the state realize its potential in terms
of growing consumer base and the advantages it possesses in terms of its geographical location and
easy accessibility.

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1.10 Project objectives
1.10.1 Key Objectives of the project include:

• To create integrated modern infrastructure leading to an ideal ecosystem to facilitate diverse sea
food processing operations and encourage entrepreneurship in food processing in the region.
• To create state of the art enabling infrastructure in the spirit of an industrial park model. Such
enabling infrastructure components would support diverse processing operations in the Park and
would lead spatial clustering of processors in the region.
• To provide the requisite backward integration support for sea food processors in the Park and
assure sustained supply of various raw material both from within and outside the region.
• To provide the requisite forward integration support to processors so as to reduce marketing and
off-take risk.
• To work closely with fishermans in the zone of influence and undertake various possible
interventions in existing harvest practices to improve production
• To create significant direct employment opportunities in the zone of influence of the project
• The project will contribute towards the food processing industry in the region through:

ƒ Ensuring low operating cost for the units present in the park through clustering and
sharing of infrastructure thus enhancing economies of scale
ƒ Reducing losses for the fishermen in the region through creation of infrastructure such as
ice units, cold storages etc. Facilitating ease of linkage between farmers and operators
through farm proximate infrastructure
ƒ Increasing the knowledge and information capital of fishermen and processors through
provision of extension services, technology centre etc.
ƒ Facilitating forward linkage of sea food processors with organized retail and exporters etc

In tune with the aforesaid goals and objectives, the Sea Food Park aims to meet the growing demand for
quality food by consumers and provide infrastructure facilities for sea food processing units (along the
food value chain from the farm to market)

The KSIDC Sea Food Park envisages supporting the industry in processing, value addition, post harvest
facilities and technical assistance to fishermen and entrepreneurs. In summary, the expected outcomes are
improved realization to fishermen, creation of high quality sea food processing infrastructure, reduction in
wastage, capacity building of the fishermen and processors and creation of an efficient supply chain along
with significant direct and indirect employment generation.

1.11 1.10 Brief outline of the project

The Sea Food Park project in the Kerala state, to be set up by Kerala State Industrial Infrastructure
Development Corporation., is based on the demand-driven hub and spoke model with provisions of strong
backward and forward linkages that create a sustainable marine fishery value chain. It contains three vital
components viz. the Central Processing Centre (CPC), Primary Processing Centers (PPCs) and the
integrated cold chain network that connects the CPC with the PPCs. It would also connect the CPC and
PPCs with demand centers.

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Figure 5 Demand driven Hub and Spoke Model

Considering the advantageous position of Kerala in the marine products segment, Kerala State Industrial
Development Corporation (KSIDC) proposes to establish a Marine Mega Food Park with major thrust to
the processing and export of seafood items in 65 acres of landowned by it at Pallippuram, Cherthala in
Alappuzha District. It would have basic infrastructure which would include road, water and power
including captive power plant, Sewage Treatment Plant, Effluent Treatment Plant and other utilities. The
total cost of land, land development and enabling infrastructure have been divided proportionately
between KSIDC and units. The grant equivalent to 35% of cost of enabling infrastructure and land
development has also been considered while calculating the proposed lease rentals. The entire allot-able
land is assumed to be leased out to units over a period of two years and recovery of land lease rentals
from the same would be recovered over a period of seven years. Based on need assessment and proposed
product mix to be handled in the Park, it is proposed to set up common core processing infrastructure
components such as Dry warehouse, SDF building with R&D with Testing and Quality checking centre
and MSM enterprises, Effluent Treatment Plant, Cold Storage, Common Weigh Bridge, R&D Building
and Testing lab etc. These facilities will be available to the prospective entrepreneurs on user fee basis.

The principal objective of the project will be to provide adequate infrastructure formarine food processing
industry along with the value chain from the fishing harbour tothe market. This will enable fresh
investments into the marine food processing sector, increased realization for fishermen and employment
generation.The proposed Mega Food Park at Pallipuram, Cherthala, AlappuzhaDist would facilitatethe
qualitative and quantitative development of the Marine Food Processing industry inthe state by way of
meeting the following objectives:

1. Integration of the supply chain to provide fishermen- market linkages that allow efficient flow of
produce/harvest
2. Showcase State’s potential and investment opportunities in the Marine Culture and Food
processing sectors
3. Demonstrate best management practices (benchmarked nationally and internationally)
4. Highlight successful business models operating in India and globally

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5. Address supply chain and infrastructure- related issues in the State of Kerala for procurement of
fresh and properly handled marine produce.
6. Increase the income levels of fishing community by linking them with the demand side of the
food chain and reducing the wastages.
7. Provide a platform for industry interaction and trade facilitation through year-round workshops,
seminars and conferences inviting participation from foreign companies and domestic
organizations and would aim to provide traders/exporters with market intelligence and
information.
8. Train and update processors on intern standards for processing methodology
9. To develop new value added products.
10. Enhance customer relationships and provide forward linkages for future business

In addition, the project also proposes to operate 5 Primary Processing Centers at Aroor, Neendakara,
Thoppumpady harbour, Vypeen and Munambam Harbour.

Out the above, a state government agency namely Kerala Industrial Infrastructure Development
Corporation (KINFRA)along with Marine Products Export Development Authority (MPEDA) and
Seafood Exporters association has established a PPC and quality control laboratory at Aroor,which is
about 14 Kilometers away from the proposed Mega Food Park. The MATSYAFED also operates a PPC
at Neendakara in Kollam District. This is nearly 100Kilometers away from the Mega Food Park. These
agencies have wholeheartedlywelcomed the Mega Food Park proposal focusing the seafood sector.
KSIDC will establish 3 additional PPCs in addition to this at Thoppumpady harbor, Vypeen and
Munambam Harbour. It is proposed to take 50 cents to 1 acre of land at these locations on a long lease
basis.

The distance of each PPC from the Mega Food Park is as follows:

Sl. No. PPC Distance (KMs)

1 Neendakara 100
2 Aroor 14
3 Thoppumpady 25
4 Vypeen 35
5 Munambam 60

These PPCs will be further supported by 30 collection centers which will be operated by fishermen
societies and groups like Matsyafed etc. KSIDC will enter into required contractual arrangements (for a
period of at least 15 years) in case of those PPCs which is being hired
The overall project architecture is provided in the following section:

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Figure 5: Project Architecture
Project Facilities
Central Processing Centre
Primary processing
Centres
Collection centres
Identified Locations
Pallipuram, Alappuzha Dist
Munambam, Vypeen and Thoppumpady in
Ernakulam District, Aroor and Pallippuram in
Alappuzha District and Neendakara of Kollam
District
30 collection centres
Identified Area
68.19 acres
1.5 acres (approx). Two existing facilities, and three to be
established in leased premises
Collection centres shall be owned and operated by local
fishermen co-operatives/ Self Help Groups
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2 Global Sea Food Processing Industry

The Seafood industry comprises activities relating to the culturing, catching, preserving, processing,
selling and distribution of fish or fishery products.

The world seafood industry plays a significant role in the economic and social wellbeing of nations, as
well as in the feeding of a significant part of the world’s population. Fishing and fish farming has
emerged as one of the major food processing occupations of mankind. In ancient times, economically and
socially backward people were employed in this profession. The advent of modern mechanized fishing
vessels has brought vast changes in the attitude of the public fishing and seafood processing. From low
income and socially backward communities the profession has shifted to the hands of industrialists and
technologists. Today fishing and processing activities provide employment to millions of people around
the world.

As per the Department of Economic and Social Affairs, Population Division, United Nations (UN) report
on global population projection, it is expected to be around 8 billion by 2030 from the current 6.9 billion.
Global human consumption of seafood has increased steadily over the last few years. It grew from 114.9
million tonnes in 2006 to 135.6 million tonnes in 2012, representing a CAGR of 2.8%. According to
estimates by the OECD–FAO, consumption will reach 160.5 million tonnes by 2022, representing a
CAGR of 1.7% during 2012–2022. Food and Agriculture Organisation(FAO) estimates that the Seafood
Industry is worth around US Dollar 400 Billion annually. Seafood demand continues to increase globally
and significant population growth in countries such as China, India and Brazil is an important demand
driver for the seafood industry. China is currently the largest producer, consumer and exporter of seafood,
and also ranks among the top importers

The major factors driving seafood demand are as follows:

1. Diet diversification in industrialized countries due to people becoming more health-conscious

2. Increasing per capita consumption, rising income and changing diet preferences in developing
countries
3. The development of modern distribution channels along with technological improvements in
processing, packaging and storage of seafood products

The top six countries with the highest per capita consumption are in Asia. Demand in these countries is
largely met through local production, with the exception of Japan, which is one of the leading seafood-
importing nations. In 2012, world per capita seafood consumption was 19.2 kg, and it is expected to rise
to 20.6 kg by 2022. As per the OECD–FAO outlook, Korea and Japan (with per capita consumption of
61.5 kg and 55.3 kg, respectively, in 2022) are expected to remain the highest seafood-consuming nations.
Brazil, China, India and Australia are forecast to demonstrate the highest growth in per capita
consumption of seafood during 2012–2022. Global seafood production is characterized by an increased
share of aquaculture products compared with products from commercial fishing. Total seafood production
stood at 156.9 million tonnes in 2012 and posted a CAGR of 2.2% during 2006–2012. China dominated
production in 2012 with a 36.5% share of the total global production. Furthermore, China is expected to
remain the largest seafood-producing nation with production forecast to post a CAGR of 1.8% during
2012–2022. Overall, seafood demand is likely to surpass production in the future, primarily due to
increasing human consumption.

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Figure 6: Top 10 Seafood consuming countries

Figure 7: Percentage Growth in Consumption

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Figure 8: Fishery Consumption and Market size

Human seafood consumption is expected to see a CAGR of 1.7% during 2012–2022, compared with a
CAGR of 1.4% in global seafood production during the same period. The growing demand may lead to a
rise in seafood prices. This highlights the growth potential of the industry and increases the attractiveness
of the sector to strategic and financial investors.

2.1 Global Trade

Sustained demand, development in processing technologies, improved logistics and trade liberalization
has all contributed to expanding the international seafood trade. China plays an important role in the
global seafood trade. In 2012, it accounted for over one-third of the global seafood production (through
both commercial fishing and aquaculture). Apart from meeting its local demand for seafood, it also
exports a significant quantity of its produce to the EU, the US and Japan. These three regions jointly
accounted for an approximately 17.8% share of total seafood consumption in 2012, and were also the
largest importers of seafood. The EU accounted for 20.5% of total imports, followed by the US (13%) and
Japan (10.5%) in 2012. According to the OECD-FAO’s Agricultural Outlook for 2013–2022, the global
seafood trade is expected to reach 45.1 million tonnes by 2022, from 37.2 million tonnes in 2012. China
is expected to maintain its leading position as the primary international exporter. The EU and the US are
likely to continue being the largest seafood importers based on meeting their growing seafood
consumption demands.

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Figure 9: Trend in exporting countries Figure 10: Trend in Importing Countries

2.2 Supply Chain and Distribution

The Seafood value chain, which comprises the following three primary activities:
1. Harvesting: this involves the collection of seafood species through commercial fishing or
aquaculture.

2. Processing:
a. Primary processing involves the shucking, cleaning, sorting, freezing, filleting and packing of
fish and other seafood.
b. Secondary processing involves the creation of processed seafood for ready meals or meal
components.
 
3. Distribution: this involves the marketing and distribution of fish or processed seafood products.

The commercial fishing and aquaculture businesses are subject to large variations in seafood prices based
on ever-changing supply and demand trends. Sustainable profitability in these businesses is largely
achieved through cost control.

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Figure 11: Global Seafood Value Chain Structure

2.3 Indian Seafood processing Industry

2.3.1 Indian Seafood Industry ‐ An Overview
India is blessed with a coastline of over 8,129 kms, 2.02 million sq. km of EEZ, 0.5 million sq. km.
Continental shelf estimated to have exploitable resources to the tune of 4.42 million tons of which about
3.22 million tons are presently exploited. The estimated potential brackish water area suitable for shrimp
farming is about 1.24 million hectare of which around 15% is utilized for farming, producing about 2.78
lakh tons of shrimp, scampi, mud crab and seabass which is going to the export basket. India’s total
fishery production is about 8.88 million tons from both capture and aquaculture (FAO, 2011).

India’s seafood industry has become one of the leading suppliers of quality seafood to all the major
markets of the world. India has world class seafood processing plants that follow quality control regimes
complaint to stringent international regulatory requirements.

2.3.1.1 Processing Infrastructure

With the growing demand for Indian seafood products across the world, the dynamics of the seafood
business in India is changing fast. There is a tremendous growth in the resources and infrastructure of the
Indian seafood industry today.

India has an installed processing capacity of 18,520 M.T with 447 state-of-the-art processing plants, out
of which 60% are EU approved plants. Almost every plant has put in HACCP and Quality control system
on par with the best in the world to ensure highest quality output.

2.3.1.2 Seafood Exports from India

During the financial year 2012-13, exports of marine products reached an all-time high of Rs 18,856
crores. Marine product exports, crossed all previous records in quantity, rupee value and US $ terms.
Exports aggregated to 9,  28,215tonnes valued at Rs. 18,856.26 crores and USD 3511.67 million.
Compared to the previous year, seafood exports recorded a growth of 7.68% in quantity, 13.61% in rupee

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and 0.1% growth in US$ earnings respectively. Frozen Shrimp continued to be the major export value
item accounting a share of 51.35% of the total US $ earnings. Fish, has retained its position as the
principal export item in quantity terms and the second largest export item in value terms, accounted for a
share of about 37.05% in quantity and 17.59% in US$ earnings. Frozen cuttle fish, squid, dried fishery
products and chilled fish exports shown positive growth this year.South East Asia continued to be the
largest buyer of Indian marine products with a share of 23.12% in terms of US $ value realization.
European Union (EU) is the second largest market with a share of 22.14% followed by USA (21.29%),
Japan (10.61%), China (7.67%), Middle East (5.96%) and other countries by 9.22%. Continuing it’s
phenomenal performance in the exports sector for Seafood, Indian exports of marine products reached an
all-time high of US $ 5007.70 million during 2013-14. The total exports aggregated to 9,83,756 MT
valued at Rs. 30,213.26 crores and US $ 5,007.70 million. Compared to the previous year, seafood
exports recorded a growth of 5.98 % in quantity, 60.23% in rupee and 42.6 % growth in US $ earnings
respectively. The unit value realization also reached to record high from USD/Kg 3.78 during 2012-13 to
USD/Kg 5.09 during 2013-14 and recorded growth of 34.55%. Continuing with its vision to further
enhance exports from India, Marine Products Exports Development Authority (MPEDA)has envisaged an
ambitious target of US$ 6.0 Billion for the year 2014-15. Increased production of L.vannamei shrimp,
increased productivity of Black Tiger shrimp and increase in infrastructure facilities for production of
value added items are considered to be the helping factors to achieve this target.

2.3.1.3 Major Items for Exports

Frozen shrimp continued to be the major export value item accounting for a share of 64.12% of the total
US $ earnings. Shrimp exports during the period increased by 31.85%, 99.54% and 78.06% in quantity,
rupee value and US $ value respectively. There was all time high growth in unit value realization of
frozen shrimp at 35.05%.The overall export of shrimp during 2013-14 was to the tune of 3,01,435 MT
worth US $ 3210.94 million. USA is the largest market (95,927MT) for frozen shrimps exports in
quantity terms followed by European Union (73,487 MT), South East Asia (52,533MT) and Japan
(28,719 MT).The contribution of cultured shrimp to the total shrimp export is 73.31% in terms of US $.
The export of cultured shrimp has shown tremendous growth of 36.71% in quantity and 92.29% in dollar
terms. The export of Vannamei has shown tremendous growth to 1,75,071 MT from 91,171 MT and US $
1,994.27 million from 731.01 million compared to 2012-13. The export of Vannamei recorded a growth
of 92.03% in quantity and 172.81% in dollar terms. 44.59 % of total Vannamei shrimp was exported to
USA followed by 17.07% to EU, 16.54% to South East Asian countries and 4.01 % to Japan in terms
US $. The export of Black Tiger shrimp reduced from US $521.33 million to 435.79 million and 61,177
MT to 34,133 MT compared to last year. Fish, has retained its position as the principal export item in
quantity terms and the second largest export item in value terms, accounting for a share of about 32.97%
in quantity and 14.15% in US $ earnings. The unit value realization of fish also increased by 21.65%. The
export of Fr. Squid has shown growth of 15.98%, 25.68% and 10.78% in terms of Quantity, Rupee Value
in and US $ terms. However it has shown decrease in unit value realization by 4.48%. Fr. Cuttlefish
recorded a growth of 8.34% in quantity. Dried items have shown a positive growth in terms of rupee
value by 21.72% and in dollar terms by 9.86%. Live items exports shown a growth by 16.17%, 42.43%
and 26.81% in quantity, rupee value and US $ realization respectively compared to the previous year.

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Figure 12: Comparison by items between 2012-13 and
2013-14

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Figure 13: Price trend item wise

2.3.2 Major export markets

South East Asia continued to be the largest buyer of Indian marine products with a share of 26.38% in
terms of US $ value realization. USA is the second largest market with a share of 25.68% followed by
European Union (EU) (20.24%), Japan (8.21%), other countries (8.20%), China (5.85%) and Middle East
(5.45%).The export  to  South  East  Asian  Countries  has shown positive growth by 11.47%, 84.67% and
62.72% in terms of Quantity, Rupee value and US dollar terms respectively.  The  exports to US had
registered a tremendous growth of 19.94% in quantity and 72.06% in US$ realization and is mainly 
attributed  to  the  export  of  Frozen Shrimp which showed a growth of about 34.81% in volume
and 92.40% in US$ terms. The exports of Vannamei shrimp showed a tremendous increase in US market
by 59.63 % in quantity and 135.71% in US $ realization.  The  export to Japan registered increase in
terms of US $ by 10.30%. Export of Frozen Shrimp increased by 7.38% in quantity terms and 28.23 % in
dollar terms. Finally, the export to Middle East countries has shown good growth of 40.13%, 43.65% and
30.29% in terms of Quantity, Value and Dollar terms respectively.

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Figure 14: Major Export Markets

 
 
2.3.3 Major Port wise Exports

Marine products were exported through 26 sea/air/land ports. Exports improved from Vizag, Chennai,
Krishnapatnam, Tuticorin and Mangalore compared to the corresponding period during the lastyear.
Pipavav is the major port in terms of quantity (25.27%) and Vizag is the major port in terms of dollar
value (22.59%).

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Table 3: Port wise Exports from India

PORT-WISE EXPORT PERFORMANCE FROM INDIA IN SEAFOOD

PORTS Apr-2009 - Mar-2010 Apr-2008 - Mar-2009 Variation (%)
Pipavav Q: 182052 163866 18186.02 11.10
V: 1673.74 1408.35 265.40 18.84
$: 361.21 307.69 53.52 17.39
Kochi Q: 104281 98537 5743.73 5.83
V: 1576.19 1504.98 71.20 4.73
$: 333.02 335.35 -2.33 -0.69
JNP Q: 129318 126853 2465.68 1.94
V: 1564.42 1487.28 77.14 5.19
$: 331.46 329.52 1.94 0.59
Chennai Q: 45991 39043 6947.93 17.80
V: 1314.10 1078.44 235.67 21.85
$: 277.80 240.80 37.00 15.37
Vizag Q: 31863 32277 -413.73 -1.28
V: 943.29 897.93 45.37 5.05
$: 199.24 199.85 -0.61 -0.31
Calcutta Q: 46901 33625 13275.63 39.48
V: 892.48 720.36 172.12 23.89
$: 188.10 159.96 28.14 17.59
Tuticorin Q: 27782 29354 -1571.80 -5.35
V: 686.45 693.76 -7.32 -1.05
$: 145.22 153.59 -8.38 -5.45
Mumbai Q: 2349 2319 30.19 1.30
V: 462.67 176.56 286.11 162.04
$: 97.97 38.60 59.38 153.83
Mangalore/Icd Q: 59000 33083 25917.07 78.34
V: 400.33 238.44 161.89 67.89
$: 85.43 52.81 32.62 61.78
Goa Q: 29409 21146 8263.22 39.08

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V: 219.24 185.16 34.08 18.40
$: 46.49 42.04 4.44 10.57
Ahmedabad Q: 1145 123 1022.35 830.17
V: 153.98 65.97 88.01 133.42
$: 32.80 14.96 17.84 119.22
Trivandrum Q: 2985 2209 775.25 35.09
V: 92.66 66.16 26.50 40.06
$: 19.66 14.69 4.96 33.79
Mid Sea Q: 6289 5482 806.33 14.71
V: 36.82 46.08 -9.26 -20.10
$: 7.86 10.27 -2.42 -23.51
Hill Land Customs Q: 8236 13960 -5724.13 -41.00
V: 19.12 25.16 -6.05 -24.03
$: 3.83 5.48 -1.65 -30.10
Mundra Q: 671 661 10.71 1.62
V: 11.02 11.00 0.02 0.20
$: 2.34 2.50 -0.16 -6.55
Calicut Q: 28 33 -5.42 -16.20
V: 1.16 1.03 0.13 12.80
$: 0.24 0.21 0.03 14.50
Agartala Q: 18 13 5.04 38.89
V: 0.52 0.40 0.12 30.23
$: 0.11 0.09 0.01 14.47
Karimganj Q: 117 173 -56.00 -32.37
V: 0.25 0.36 -0.11 -31.85
$: 0.05 0.08 -0.03 -35.18
Delhi Q: 0 1 -0.80 -79.55
V: 0.07 0.07 0.00 0.55
$: 0.02 0.02 0.00 -8.34
Total Q: 678436 602835 75600.73 12.54

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V: 10048.53 8607.94 1440.59 16.74
$: 2132.84 1908.63 224.21 11.75

The industry overview of the Seafood industry in India is presented in the following table:
Table 4: Types of processors in India for Sea Food

De-
Registered as on Registration Registered as on 31-
Category Registration Cancellation done Capacity in M.T.
01-04-2009 done 03-2010
done
Manufacturer Exporter 385 54 24 12 403 NA
Merchant Exporter 422 94 60 28 428 NA
Route Thro Merchant Exporter 25 6 3 1 27 NA
Ornamental fish Exporter 42 12 2 2 50 NA
Fishing Vessels 5587 1415 177 16 6809 NA
Processing Plants 414 25 27 1 411 15113.03
Ice Plants 62 5 2 0 65 1858.8
Peeling Sheds 599 23 35 1 586 5387.47
Conveyance 130 51 19 8 154 1056.34
Storages 491 28 28 1 490 162859.6
Fresh/Chilled fish 24 7 4 0 27 1372.4
Live Fish Handling Centre 22 3 1 0 24 2371.63
Salted/Dried Fish Handing Centre 43 5 5 0 43 646.48

Page | 28 
 
  
Figure 15: State wise distribution of processing units

Page | 29 
 
  

3 Kerala: The State profile

3.1 Demography

The state of Kerala was formed on November 1st, 1956. It covers an area of about 38,863 sq. km. The
state has been divided into 14 districts for administration purpose.

According to the 2011 census, Kerala's

population was 33.40 million which 2.76 %
of the Indian population is. Of this, 16.02
million are male and 17.38 million female.

The State boasts the highest Physical

Quality of Life Index in the country with
around 93.91% literacy, the lowest
birthrate in the country - 15 %per 1000, a
death rate of 6.4% per 1000 and infant
mortality rate of 12 per 1000.

The vast majority, 52.3% i.e. 17.5 million,

live in rural areas while 47.7%, i.e. 15.9
million, populate the cities.

Malappuram has the highest population of

4.1 million followed by
Thiruvananthapuram with 3.3 million.
Wayanad is the least populated district with
a population of 0.81 million

3.2 Economy

The economy of Kerala has registered a CAGR of about 8.4% (estimated at constant prices 2004-05)
between 2004-05 and 2011-12 and grown from Rs 1,19,2.6 billion cr. to Rs 2,101.1 billion cr. In
terms of income distribution, the state per-capita income has increased from Rs. 36,278 in 2004-05 to
Rs. 60,536 in 2011-12.

Page | 30 
 
  

Source: CSO State Series

Figure 16 State Economy CAGR

Kerala - Economic Indicators

Table 5: Economic Stattus

Kerala - Economic Indicators

State Income at current prices in 2011-12 Rs. 276996.70 crore
State Income at Constant price in 2011-12 (Base year 1999-
Rs. 232381.05 crore
2000)
Growth Rate (2010-11) 9%
Per capita Income at current prices in 2009-10 Rs. 67312 crore
Per capita Income at constant prices in 2009-10 (Base year
Rs. 52984 crore
1999-2000)
Output of important commodities during 2009-10 (in 1000 tonnes)
Rubber 745.51
Tea 57.809
Coffee 59.25
Pepper 37.9
Rice 598
Coconut 5667
Cashew 36.45
Ginger 28.6
Cardamom 7.8
Banana 408.41
Plantains 381.11
Tapioca 2525.38

3.2.1 Sectoral Growth

3.2.1.1 Primary Sector

In terms of sector level contribution to GSDP, the primary sector’s contribution has declined from
17.9% in 2004-05 to 9.5% in 2011-12, as indicated in the figure below.

Page | 31 
 
  
Figure 17: Primary sector CAGR

Source: CSO State Series

Table 6: Distroct wise contribution

District Contribution of district to

overall state primary output
Ernakulam 10.50%
Kottayam 9.60%
Kollam 9.30%
Malappuram 9.10%
Idukki 8.90%
Palakkad 8.20%
Thiruvananthapuram 6.70%
Source: CSO State Series

3.2.1.2 Secondary sector

As Figure 9 indicates, the secondary sector contribution has declined from 22.5% in 2004-05 to
20.2% of GSDP in 2011-12. In real terms, the sector has seen growth of 6.8% during this time period,
primarily due to increasing contribution of construction and manufacturing activities.

Source: CSO State Series

Figure 18 Secondary Sector CAGR

Page | 32 
 
  
In 2011-12, construction comprised 58% of the secondary sector, followed by registered
manufacturing (20%), unregistered manufacturing (16%) and electricity, gas & water supply (6%).

3.2.1.3 Tertiary sector

It is important to note that the share of tertiary sector has steadily increased from 59.6% to 70.3%,
primarily due to increased contributions from sectors such as Transport, Storage and Communication,
and Banking and Insurance.

Source: CSO State Series

Figure 19 Tertiary Sector CAGR

3.3 Physical infrastructure

3.3.1 Connectivity
Road

There are at present eight national highways

that connect Kerala to the rest of India. It is  
one of the most connected states in India
with 2,19,805 km of roads linking its
villages, towns and cities.

Kerala's road density is 417 km/100 sq km

and it is far ahead of the national average of
10.39 km/100 sq km. The length of road per
lakh population is 509.23 km; much higher
than the national average of 321.3 km.

Page | 33 
 
  

Railways

Railways are essentially the cause for Industrial

upsurge in the nation and it still remained the
largest employment provider for the huge
population of the country.

The total length of track used by Indian Railways

is about 111599 Km and the total route length is
64215 kms.

The State total Railway route has a length of 1257

Km and covers 13 Railway routes.

Air Transport:

Kerala occupies a unique position on the aviation map of India with three international airports at
Thiruvananthapuram its capital city and then at Kochi in central Kerala and Kozhikode in the north.
And the work on the fourth one has started in the form of the Kannur International Airport.

The Cochin International Airport Limited (CIAL)

is the fourth busiest airport in India in terms of
international traffic with about 179 departures a
.
week with total number of weekly departures
standing at 436.

With 16 international carriers, CIAL has direct

connectivity to most countries in the Middle East,
Singapore and Malaysia, besides onward
connections to various destinations in Europe and
the Far East.

It is well connected to all metros and non-metro

airports in India.
Sea connectivity
Cochin International Airport is the first green-field
Kerala with a coastline of 590 km has a major
airport built through public-private partnership in
port at Kochi and 16 smaller ports along the
India.
coast. The port at Kochi is an all-weather port
on India's west coast and has one of the best  
Turn-Around-Times (TAT) among ports in

Page | 34 
 
  
India.It is now the least congested port in India with containerized traffic moving to the International
Container Transshipment Terminal since 2010.

The Kochi port is also a favourite port-of-call for luxury cruise liners from across the world. Kerala
has 16 other ports, which are mostly seasonal. Of them developments are taking place in Vizhinjam,
Thankassery, Alappuzha, Munambam, Ponnani, Beypore and Azhikkal.

Power

The Kerala State Electricity Board has an installed capacity of 2087.23 MW on its own with another
570.016 MW contributed by NTPC and private sector producers, taking the total installed capacity to
2657.24 MW.

The average peak load is 2800 MW with the difference being met by drawing from the central power
grid. However, Domestic and commercial electric consumption charges in Kerala are one of the
lowest in India.

Communication

Internet: Kerala realizes the importance of high-speed communication through Internet. Almost every
one in the state is well versed with Internet. There are many Internet cafes in Kerala that provide
facilities of surfing the net at minimal costs.

Telephones: Kerala has telephone facilities all through the state. Even the remotest village will have a
phone booth that provides local calls, trunk calls as well as international calls.

Postal Services: The total number of post offices in Kerala is almost 5000! Every remote village, town
and district has postal services.

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4 The Kerala Sea Food Industry

General Profile

¾ Area of Kerala : 38863 Sq. Km

¾ Population (2011 Census) : 334.06 Lakh
¾ Fisherman Population(Estimate) : 10.13 Lakh
¾ Active Fishermen Population (2013-14) : 233206 Nos
¾ Allied Workers : 76510 Nos
¾ Primary Fishermen Co-operative Societies : 780 Nos
¾ Fishermen Villages (1) Marine : 222 Nos

(2)Inland : 113 Nos

4.1 District Wise distribution of Coastal Lines in Kerala

Length of Coastal Line
Sl No District
Length (in KM) Percentage to Total
1 Thiruvananthapuram 78 13.22
2 Kollam 37 6.27
3 Alappuzha 82 13.90
4 Ernakulam 46 7.80
5 Thrissur 54 9.15
6 Malappuram 70 11.87
7 Kozhikode 71 12.03
8 Kannur 82 13.90
9 Kasargode 70 11.86
Total 590 100.00

4.2 Fishing Harbours in Kerala as on 31‐03‐2013 by Harbour Engineering

Department
Proposed to be
Sl No Completed Sl No Under Construction Sl No
Constructed
1 Thankassery 1 Vizhinjam 1 Poonthura
2 Neendakara 2 Muthalappozhy 2 Valiyathura
3 Kayamkulam 3 Chethi 3 VarkalaChilakkoor
4 Thottappally 4 Arthunkal 4 South Paravoor
5 Munambam 5 Chellanam 5 Punnapra
6 Ponnani 6 Chettuva 6 Parappanangadi
7 Beypore 7 Koyilandi 7 Thanur
8 Puthiyappa 8 Thalai 8 Vellayi
9 Chombal 9 Cheruvathoor 9 Puthiyangadi
10 Mopla Bay 10 Kasargode 10 Manjeswaram
11 Azheekal 11 Pathiyankara

Page | 36 
 
  
12 AjanoorKadappuram

4.3 Export of Marine Products from Kerala

Year Quantity Value % Share of all India
(In MT) (Rs. In Cr.) Quantity Value
2009-10 107293 1670.02 16 17
2010-11 124615 2002.10 15 16
2011-12 155714 2988.34 18 18
2012-13 166399 3435.85 18 18
2013-14 165698 4706.36 17 16

¾ Number of Registered Vessels

(a) Motorised Non Mechanical : 26382
(b) Motorised Mechanical : 3548
(c) Non Motorised : 1878
Total : 31808

Table 7: District wise Annual Fish Production in Kerala 2013-14

Annual Production 2013-14

Marine Inland Total
Sl
District Value Value Value
No Quantity Quantity Quantity
(In Rs. (In Rs. (In Rs.
(in MT) (in MT) (in MT)
Lakh) Lakh) Lakh)
1 Thiruvananthapuram 41836 44199 3705 3042 45541 47241
2 Kollam 105009 111375 21877 21325 126886 132700
3 Pathanamthitta -- -- 2025 2337 2025 2337
4 Alappuzha 116159 96657 24828 32216 140987 128873
5 Kottayam -- -- 8756 9166 8756 9166
6 Idukki -- -- 1344 3163 1344 3163
7 Ernakulam 51997 69025 41449 70158 93446 139183
8 Thrissur 63905 80493 25564 24976 89469 105469
9 Palakkad -- -- 22036 16693 22036 16693
10 Malappuram 25155 32303 3543 3352 28698 35655
11 Kozhikode 80050 94347 4561 3788 84611 98135
12 Wayanad -- -- 1005 1659 1005 1659
13 Kannur 22320 29934 3139 2662 25459 32596
14 Kasargode 15877 18342 22505 10169 38382 28511
Total 522308 576675 186337 204706 708645 781381
   

It may be observed from the above table that Alappuzha is the highest in terms of annual production;
Kollam, Ernakulam and Thrissur are on the 2nd, 3rd and 4th Spot Respectively. This is been one of

Page | 37 
 
  
the main reasons for selecting the district Alappuzha as our Central Processing Cente (CPC) for
Marine Food Park. Kollam Ernakulam and Thrissur are the adjoining districts and can form a cluster
for the Marine Park.

4.4 Understanding the Value Chain for Marine/Inland Fish Sector in

Kerala
Understanding the value chain is an important aspect of such projects. Where the purpose of such
Government sponsored projects are to benefit the overall sector, the primary objective is benefit the
producers as well as the end users/consumers. Thus, undertaking a value chain analysis helps in
understanding the issue of who controls the grade and industry and how agents are locked into lower
value segments of trade and industry. Channel management, between the fishermen and the end-user,
influences both the effectiveness and flow of the product through the chain. The major supposition is
that improvements in the market system will amplify the opportunities by retaining and adding value
in the fisheries sector within the rural regions. Simultaneously, this will help to improve product
quality and continuity of supply, benefiting the consumers. The following figure helps us in
understanding the material flow chain of the fishery sector in Kerala 3.

                                                            
3
Fishery Commodity Chain Trap vis‐à‐vis Global Quality Standards: An Analysis of the Kerala Marine Fishery 

Page | 38 
 
  
Figure 20: Overall Value Chain of Marine/Fish product in Kerala

The value chain analysis has been undertaken for Shrimp which is a major item for Sea Food Sector
constituting around 64% of exports from India. The following table provides the analytics of the
same.

Page | 39 
 
  
Table 8: Shrimp Value Chain

Price as
Value chain Price (Indian proportion of
Price (Indian rupees/kg)
node rupees/kg) retail price
(%)
Landing site Price paid to the fisherman/boat owner 140.50 23.35

Price paid by peeling shed

Auction agent 146.50 24.35
owner/commission agent

Peeling shed Price paid by exporter/agent (A) 156 25.93

Exporter 1.55
a) Conversion cost 9.3 2.31
b) Overhead cost 13.9 3.86

c) Total cost of production (B) 23.2 0.00

Selling expenditure 0.54

a) Packing charges 3.25 1.66
b) Freight charges 10.01 0.93
c) Interest on working capital 5.62 0.00
d) Interest on term loan 0.52 0.09
e) Other selling expenses 3.9 0.65
Total selling expenditure (C) 23.3 3.87
Total cost of export (B+C) 46.5 7.73

Exporters margin D-(A+B+C) 25.9 4.30

Importer/agent Price paid to the exporter (D) 228.4 37.96

Cold chain transport and other expenses (E) 22.4 3.72

Importer/Importers agent’s margin F-

38.6 6.41
(D+E)

Whole sale
Price paid to the importing agent(F) 289.4 48.10
importer

Value addition(G) 32.1 5.33

Importer re-processors margin H-(F+G) 70.10 11.65

Supermarkets Price paid to the importer-reprocessor (H) 391.6 65.08

Value addition and branding(I) 60.12 9.99

Supermarkets margin J-(H+I) 150.00 24.93

Page | 40 
 
  

Consumer Price paid at retail outlet (J) 601.72 100.00

Figure 21: Export percentage of various sea foods from Kerala

Approved units - Fish & Fishery Products (EU) 4

Figure 22: EU approved sea food processing units in Kerala

                                                            
4
http://eicindia.gov.in/eicold/eic/units/fish-eu-kochi.htm 

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5 Cluster Mapping
5.1 Rationale for selection of cluster
The Mega Food Park zone may be defined as a geographic region where identified commodity are
sourced, processed and transformed into finished products for marketing. From sourcing to finished
product, a region without any physical boundary would be required, which would consist of several
Collection Centers for sourcing of raw produce, a number of Primary Processing Centers and a
Central Processing Unit where produce is not only transformed to finished products but are also stored
for marketing during off season. The entire zone can be termed as the project zone (PZ).

The zone would typically include similar business units operating in similar industrial sectors. They
will be located near each other and will compete among themselves only if catering to the same end-
product category, in similar markets, and they will also share common inputs such as raw materials,
labor with specific skills sets. Thus, it can be said that clusters can encompass the entire value chain
of a broadly defined sector from raw produce to end products. Based on the availability of raw
material within the Zone and the processing opportunities, a number of focus spices have been
identified for the Mega Food Park.

Development of Mega Food Parks (MFP) needs a diverse and sustainable raw material supply region
serving as a catchment area for sourcing of marine fish. Based on the supply strengths of the zone, it
is important to identify primary processing centers and collection centers within the catchment area so
as to secure raw material for the processing units in the MFP. This chapter presents a detailed study of
the potential of the zone to supply marine produce to processing units in the Mega Food Park at
Pallippuram, district Alappuzha in Kerala. It also maps the cluster and identifies tentative PPC and
CC locations, analyses the existing marketing system and value chains to identify the flow of marine
produce and identify critical gaps so as to identify key interventions that would be taken up by KSIDC
Food Park to build an efficient supply chain for various units in the Mega Food Park.

The geographical limit of the identified zone has been delineated based on the diversity and quantity
of raw material available and contiguity of the potential area for future expansion. Also, comparative
advantage of marine spices in terms of processing ability, marketing opportunities, seasonal
advantage, local consumption, export/import substitution, scope for intensification and productivity
improvement has been duly taken into consideration. Since the Mega Food Park would require
continuous supply of large volume of raw material, this would necessitate investment in food
processing infrastructure, strengthening of supply chain to reduce wastage, prevent quality
deterioration and ensure timely availability of various focus commodities. Appropriate product mix
has been chosen based on raw material available in the project zone and their scope for processing and
value addition. The project zone produces significant quantities of marine fish which are necessary
raw materials required to undertake various food processing activities in the Mega Food Park. The
cluster also enjoys relatively better infrastructure in terms of connectivity, power supply etc, which
will enable the Mega Food Park in attracting prospective entrepreneurs for setting up of their units in
the proposed Mega Food Park.

The cluster that has been identified includes three districts of the project zone i.e. Ernakulam(3),
Alappuzha(1) and Kollam(1).

Page | 42 
 
  
Fishermen
Coastal Fishermen Population
Sl No District population per km
Length (Km) (*000)
length
1 Thiruvananthapuram 78 163.5 2096
2 Kollam 37 89.47 2418
3 Alappuzha 82 107.20 1307
4 Ernakulam 46 70.96 1543
5 Thrissur 54 70.95 1314
6 Malappuram 70 77.90 1113
7 Kozhikode 71 94.86 1336
8 Kannur 82 53.99 658
9 Kasargode 70 44.42 606
Total 590 771.25 1307

Fishermen impacted 267 thousand

Total Costal Length: 165 Kms

Fisherman population per Km: 5269

The Zone of Influence has various advantages-

• Availability of varied raw material viz.

Marine fish and inland fish
• Excellent connectivity through road and rail,
almost equidistant from major cities of India
• Zone is well developed in terms of water,
electricity and other physical infrastructure
requirements.
• In view of the above advantages, the proposed
zone is highly suitable as a potential location for
the development of a Mega Food Park.

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5.2 Details of catchment districts in the Park
Ernakulam district possess geographically distinct regions such as highland, midland and coastal
areas. The Periyar River, Kerala's second longest, flows through all the taluks except Muvattupuzha.
The Muvattupuzha River and a
branch of Chalakkudy River also
flow through the district. The
average yearly rainfall in the district
is 3432mm. It covers a coastline of
46.2 km of the Arabian Sea on the
west and the districts of Kottayam
and Alappuzha to the south. Fishing
and Aquaculture is the one of the
main income generating activity of
the coastal community. Shrimp
farming is extensively practicing by
the traditional shrimp farmers of the
district where the backwater
resources available. Small scale
ornamental fish farming and other
fresh water food fish culture is getting momentum in most of the eastern areas of the district since the
last two decades.

Alappuzha is a Land Mark between the broad

Arabian Sea and a net work of rivers flowing
into it. The presence of a port and a pier, criss -
cross roads and numerous bridges across them, a
long and unbroken sea coast given the district a
comparative advantage. The district is a widely
known tourist destination and is well known for
its coir factories. Most of Kerala's coir industries
are situated in and around Alappuzha.

Kollam District is situated on the South west

coast of kerala. The District is bound on the
north by Alappuzha and north east by
Pathanamthitta Districts on the east by
Thirunelveli District of Tamilnadu, on the
South by the Thiruvavanathapuram District
and on the west by Arabian Sea.

Kollam is an old sea port town on the

Arabian coast, stands on the Ashtamudi
Lake. Two rivers Kallada and Ithikkara
flows through this District. The
Sasthamcotta Lake, the only major fresh

Page | 44 
 
  
water lake in the state is in Kollam District. It is also an important hub for the State's marine products
industry, with the port of Neendakara being the centre for trawlers and ice plants.

5.3 Identification of CPC and PPC

Inadequate infrastructure is one of the major constraints standing in the way of development of fish
processing industries in the state. There is a need for improvement in the post harvest management
system, marketing infrastructure and processing facilities. One of the major constraints experienced in
the post harvest handling of all perishable commodities is the absence of an efficient cold chain. This
not only leads to wastage of perishable produce but also adversely affects the supply of raw material
to food-processing industries. The wastage adds to the cost of raw material, ultimately affecting the
competitiveness of food processing industries. Inadequate and fragmented supply chain prevents
linkages of fisher man to the market. It is increasingly becoming evident that only a vibrant food-
processing sector can lead to increased prices and thus enhanced income levels, reduction in wastages
and increasing employment opportunities.

The Mega Food Park would be backed up by an efficient and sustainable supply chain. Based on
surplus raw material available and infrastructure assessment, potential locations for Primary
Processing Centers (PPCs) have been identified and mapped which would be further supported by
cold chain infrastructure to reduce wastages and check quality deterioration. Strong backward
linkages would be established by involving fisher men groups/traders/CA and federating them into
appropriate entities wherever possible.

PPCs will have modular needs-based sorting, grading, packing and transit storage facilities. These
centers may also have facilities for transfer of technology, information kiosks, supply of inputs etc.
They will be linked to the Central Processing Center of the Park as well as with potential retail
markets for procuring raw material for processing and catering to fresh segment as well.

5.3.1 Identified location for CPC

Based on the availability of raw material, seasonality of produce, product mix, potential for
processing and nearness to the markets, it has
proposed that the CPC would be located at
Pallippuram Village, Alappuzha district. The land
measuring 65.98 Acres is under the possession of
KSIDC for establishment of Mega Food Park.

The site is located 5 kilometres (3.1 mi) from

Cherthala in the Alappuzha district of the Indian
state of Kerala. The settlement is surrounded by
water on three sides - in the east and west by
Vembanad Lake and in the south by the Chenganda
River. The nearest seaport is located at the distance
of 30 km (Kochi). The nearest airport (Kochi
Airport) is at a distance of around 70 km. The nearest railway station is located at Cherthalaa radial
distance of 6-8 Kms.

110KV electrical lines are passing through the proposed project site and the feasibility for a 110KV
substation at the site has been established and it is proposed to set up the substation. Water supply
scheme will have to be devised and executed. The pipelines of Kerala Water Authority (KWA) are

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passing through the location and internal water supply scheme will have to be established from the tap
off point in this pipeline.

The Aroor/Cherthala belt is well known for seafood industries. There are also many pre processing
centres in the locality catering the seafood sector

5.3.2 Other available Infrastructure

1. Power by KSEB.
2. Roads - 15 Mts wide Internal road within the Growth Centre
3. Communication-Telephone & Internet connectivity available.
4. Single Window Clearance Support for obtaining various licences

5.3.3 Identified PPCs

Five PPCs are proposed at the following locations based on product mix, quantities of various raw
materials, connectivity and other physical infrastructures. Details regarding PPCs are given in the
following table:

Table 9 Details regarding PPCs

S.No PPC Locations District Approximate distance Major Produce

from MFP site in km to be Handled

1 Neendakara Kollam 104.4 Marine Fish

2 Aroor Alappuzha 19 Marine Fish

3 Thoppumpady Ernakulam 24.8 Marine Fish

4 Vypeen Ernakulam 49.7 Marine Fish

5 Munambam Ernakulam 62.7 Marine Fish

PPC 1. – Neendakara, Kollam District

This is an established PPC operated by MATSYAFED. KSIDC has entered into an MOU with
MATSYAFED for utilization of the PPC towards the Mega Food Park. The MOU is the same in
which the arrangements for supply of raw materials are entered in to.

PPC 2. – Aroor Alappuzha

This PPC is also established by KINFRA and MPEDA. KSIDC is in discussions with M/s Seafood
Park (India) Ltd., the company operating the PPC for facilitating their PPC and Quality Control
Laboratory for the Mega Food Park.

PPC 3. – Thoppumpady

Thoppumpady is a fishing harbor in Ernakulam District. Many fishing boats dock at this harbor on a
daily basis. It is proposed to take 50 cents to 1 acre of land in this harbor area on long lease basis.
Sheds will be constructed in the PPC to facilitate cleaning, peeling and sorting activities. KSIDC will

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also ensure chilled water supply and block ice at the PPC. Quality control laboratory will be provided
in this PPC.

PPC 4. – Vypeen

Vypeen is another fishing harbor in Ernakulam District. It is proposed to take 50 cents to 1 acre of
land in this harbor area on long lease basis. Sheds will be constructed in the PPC to facilitate cleaning,
peeling and sorting activities. KSIDC will also ensure chilled water supply and block ice at the PPC.
Both Thoppumpady and Vypeen are in the vicinity of Kochi Port.

PPC 5. – Munambam

Munambam is also a fishing harbor in Ernakulam District. At Munambam also, it is proposed to take
50 cents to 1 acre of land in this harbor area on long lease basis. Sheds will be constructed in the PPC
to facilitate cleaning, peeling and sorting activities. KSIDC will also ensure chilled water supply and
block ice at the PPC. A quality control laboratory will also be provided in this PPC.

5.4 Potential Location of Collection Centers (CC)

Collection Centers will serve as aggregation points in the catchment areas of each of the PPC,
from where produce will be aggregated for onward dispatch. It is envisaged that collection
centers would not have any brick and mortar structure and aggregation points at village level
would be identified in consultation with Gram Sabha and Panchayat. Sea produce will be
brought at these collection centers by the producers or village aggregators. From here,
depending upon the type of item, it will either be taken directly to the CPC for storage, value
addition and processing or to the nearest PPC for intermediate processing like sorting and
grading after which it will be sent to the CPC or to the fresh retail markets. From preliminary
estimates, it appears that around 15 such centers will need to be set up for 5 PPCs. Most of
the CCs shall be located within a distance of 10-15 km from the PPC. Each CC will directly
source raw materials from the fisher men in the catchment of 10-15 km. Such CCs will be
identified in consultation with the units coming into the park

5.5 Availability of Major marine Produce

To understand the marketable surplus in the project zone, in-depth analysis has been done which
shows the available produce in the raw form which can be transported to the CPC, PPC and CC
proposed in the Mega Food Park. Detailed analysis and major findings are mentioned below:

Coastal Fishermen Fishermen

S. No. District Length Population population per km
(Km) (*000) length

1 Thiruvananthapuram 78 163.5 2096

  2 Kollam 37 89.47 2418

3 Alappuzha 82 107.2 1307

4 Ernakulam 46 70.96 1543

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5 Thrissur 54 70.95 1314

6 Malappuram 70 77.9 1113

7 Kozhikode 71 94.86 1336

8 Kannur 82 53.99 658

9 Kasargode 70 44.42 606

Total 590 773.25

The proposed zone offers a wide range of marine and inland fish produce. The information and tables
below provide description of various potential fishes cultivated in the Project Zone.

It may be noted that Marine waters offer a very lucrative fishery. South-west monsoon coupled with
north-westerly winds and the oceanic currents cause upwelling along the coast which brings the
nutrient rich deep waters to the surface, with flourishing primary production and followed by a good
fishery. Kerala coast has major fisheries of the shrimps, cuttle fish, sardines, mackerels, anchovies,
soles, sharks, rays, etc. On an average 6.02 lakh tones of marine fish is produced annually by the
State, which accounts for about 25% of the Country’s total marine fish production. Main fish species
of Kerala and project zone are mentioned below:

• Elasmobranches
• Cat fish
• Sardine
• Anchovilla
• Saurida&saurus
• Perches
• Scianids Ribbon Fish
• Caranx
• Mackerel
• Seer fish
• Tunnica
• Prawn

The proposed cluster is a leading area in marine fish production. The data reported that Alappuzha
(22.2 % of total marine fish production in the state) has been ranked number one followed by Kollam
(20% of total marine fish production in the state) in 2nd position in terms of production.

Table 10 District wise Marine Fish Annual Production 2013-14

Annual Production 2013-14

% Contribution in total
S. Marine
District
No.
Value (In State
Quantity (in MT) State Value
Rs. Lakh) Productio

Page | 48 
 
  
n

1 Thiruvananthapuram 41836 44199 8.0 7.7

2 Pathanamthitta -- -- -- --

3 Alappuzha 116159 96657 22.2 16.8

4 Kollam 105009 111375 20.1 19.3

5 Ernakulam 51997 69025 10.0 12.0

6 Kottayam -- -- -- --

7 Idukki -- --

8 Thrissur 63905 80493 12.2 14.0

9 Palakkad -- -- -- --

10 Malappuram 25155 32303 4.8 5.6

11 Kozhikode 80050 94347 15.3 16.4

12 Wayanad -- -- -- --

13 Kannur 22320 29934 4.3 5.2

14 Kasargode 15877 18342 3.0 3.2

Total 522308 576675 100.0 100.0

It may also be noted that the project zones contribute more that 52% to the state total marine
production which is significant percentage. Hence, based on the availability of raw material and, the
Central Processing unit has been proposed at Alappuzha which is the major contributor of the project
zone. The CPC will be supported by the PPC which will be established in Kollam and Ernakulam, 2nd
and 5th major contributors to total state production.

5.5.1 Major Marine Fishes found in the Project zone

They are as follows: 

5.5.1.1 Elasmobranchs

Elasmobranch is a subclass of Chondrichthyes or Cartilaginous fish that includes the sharks, rays,
skates and sawfish. They resemble the true fishes in external form, but differ from them so widely in
the structure. This speices is one of the marine fish species in the project zone.

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On comparing the data, it is has been found that the project zones contribute more that 59.22% to the
state total Elasmobranch production which is significant percentage. Alappuzha is the district which is
finalized as CPC and has been ranked in top position in production in the state followed by Ernakulam
which are the finalized as PPC Location for the proposed project.

Figure 23 District wise Elasmobranchs

5.5.1.2 Oil Sardines

Oil Sardines is a species of Ray finned fish in the genus Sardinella. It is one of the two most important
commercial fishes in project zone (Other being Mackerel). The Oil Sardines are commonly called as
Mathi or Chaala in project zone.

Figure 24 District wise oil sardines Production

It may be noted from the above table that that the project zone contributes more that 60% to
the state total state oil sardiness production. Further, it can be see that Alappuzha which has been
identified as the CPC ranked as 1St followed by Kollam and Ernakulam. Both the locations have been
identified as the supporting PPC locations. However, as and when required, raw material will also be
procured from the nearby districts like Thrissur and Malappuram to meet the demand which are
adjacent to the CPC location.

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5.5.1.3 Lesser Sardines

Lesser Sardines comes under two families: family clupeidae and family dussumieridae. This is second
largest fish produce in the project zone. On comparing the data, it has been found that project zone
contributes more that 81% to the state total fish production which is significant percentage and
ensures the availability of enough raw materials for proposed Food Park.

Figure 25 District wise lesser Sardiness Production

It can be seen from the figure that Kollam (PPC) and Alappuzha (CPC) ranked in position one and
two in the production respectively.

5.5.1.4 Anchoviella

An Anchovy is a small, common salt-water forage fish of the family Engraulidae. They range from
2cm to 40cm in adult length. It is the most commonly consumable produce.

Figure 26 District wise Anchoviella Production

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It may be noted from the above table that that the project zone contributes more that 61% to the state
total state Anchoviella production. Further, it can be seen that Kollam which has been identified as the
PPC ranked 1St followed by Alappuzha. However, raw material will also be procured from the nearby
district like Thiruvananthapuram which is adjacent to the CPC location and ranked at 3rd position in
the total production.

5.5.1.5 Other Clupeids

Other Clupeids includes the Herrings and the Shads. They include many of the most important food
fishes in the world, and are also commonly caught for production of fish oil and fish meal of Kerala.

Figure 27 District wise Other Clupeids Production

It can be reflected from the above figure that Alappuzha ranked as 1st, followed by Kollam in
production. Total project zone contributes more that 63% to the state total other clupeid production.
Due to contiguous area, raw material can also be transported from Thiruvanthapuram to nearest PPC.

5.5.1.6 Perches
Perch is a common name for fish of the genus perca, fresh water game fish belonging to the family
Percidae. The Perch, of which there are three species in different geographical areas, lend their name
to a large order of vertebrates: the Perciforms, from the greekperke meaning Spotted, and the Latin
forma meaning name. Many Species of fresh water gamefish more or less resemble the perch, but
belong to different genera. Fish mainly distributed in Sri Lanka, South-East Asia including southern
China.

Figure 28 District wise Perches Production

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On analysis it is has been found that the project zone contributes more that 38% to the state total
Perches production. Kollam and Alappuzha ranked 1st and 2nd respectively which are finalized as CPC
and PPC locations.

5.5.1.7 Sciaenidae
Sciaenidae are a family of fish commonly called drums or croakers for the repetitive
throbbing or drumming sounds they make. The family includes the weakfish, and consists of about
275 species in about 70 genera; it belongs to the order Perciformes. A Scaienid has a long dorsal fin
reaching nearly the tail, and a notch between the rays and spines of the dorsal, although the two parts
are actually separate. 

Figure 29 District wise Sciaenids Production

It can be seen that the project zone contributes more that 37% of the total state sciaenids production.
However, raw materail can also be procured from the adjacent area like Thrissur which contrbutes
20.26 % of sciaenids to total state production.

5.5.1.8 Ribbon Fish

Ribbon fish is national Seafood. The fish is exported intact, without being cleaned or
processed. Apart from China, the other major importers of the ribbon fish are Japan and Thailand.

Figure 30 District wise Ribbon Fish Production

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The project zone contributes more that 37% of the total state ribbon fish production. However, raw
material can also be procured from the adacent area like Thrissur which contrbutes 20.26 % of Ribbon
Fish of total state production.

5.5.1.9 Caranx
Caranx is a genus of tropical to subtropical marine fishes in the jack family carangidae,
commonly known as Jacks, Trevallies and King Fishes. They are moderate to large sized, deep-bodied
fishes which are distinguished form other carangid genera by specific grill raker, fin ray and dentition
characteristics. It is a widely consumed fish in the state of Kerala.

Figure 31 District wise Caranx Production

It can ben seen from above figure that major production contribution is coming from the
project zone. Kollan shich is a proposed PPC and solely contrbutes more than 28% of the total
production. In totalilty the zone contrbutes more than 48% of total state caranx production. However,
supply of raw material will also be procured from nearby districts like Thrivanthapuram and Thrissur
based on the requrement.

5.5.1.10 Mackerel
Mackerel is a common name applied to a number of different species of pelagic fish, mostly,
but not exclusively, from the family Scombridae. They are found in both temperate and tropical seas,
mostly living along the coast or offshore in the Oceanic environment. Mackerel typically have vertical
stripes on their backs and deeply forked tails. Mackerel is the most likeable table fish in Kerala.

Figure 32 District wise Mackerel Production

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On comparing the data, it is has been found that the project zone contributes more that 42% to the
state total Mackerel production. Kollam ranked 1st followed by Kozikode and Ernakulam in
production figures.

5.5.1.11 Soles
Sole is a fish belonging to several families. Generally speaking they are members of the family
Soleidae, but, outside Europe, the name Sole is also applied to various other similar flatfish. On
comparing the data, it is has been found that the project zone contributes more that 42% to the state
total Soles production. Kollam ranked 1st followed by Kozikode and Ernakulam in production figures.

Figure 33 District wise sole Production

5.5.1.12 Penaeid Prawns

Panaeidae is a family of marine crustacean in the suborder Dendrobranchiata, which are often referred
to as penaeid shrimp or penaeid prawn. Many prawns are the subject of commercial fishery and
farming both in marine settings and in fresh water farms.

Figure 34 District wise Penaeid Production

It can ben seen from above figure that major condtrcution is coming from project zone.
Kollam which is a proposed PPC solely contrbutes more than 19.21% of the total penaeid production.
In totalilty the zone contrbutes more than 49.36 % of total state penaid production. However, supply
of raw material will also be from contigous districts likeThrissur.

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5.5.1.13 Stomatopodes

Mantis Shrimp or Stomatopods are Marine Crustaceans, the members of the order Stomatopoda. Most
Species can grow to around 10 cm in length, though few reach upto 38 cm. There are more than 450
Species of Mantis Shrimp.

Figure 35 District wise Stomatopodes Production

Project Zone is the major contributor of total state Stomatopodes production. It may be noted that
project zone contributes more that 66% of total Stomatopodes production wherein Kollam is ranked
1st with a contribution of 42% and Ernakulam ranked 3rd with contribution of 18%. However, raw
material can also be taken from nearby district.

5.5.1.14 Cephalopodes
Cephalopod is any member of the molluscan class Cephalopoda. These exclusively marine
animals are characterized by bilateral body symmetry, a prominent head and a set of arms or tentacles
modified from the primitive molluscan foot. Fishermen normally call them the ink fish, referring to
the common ability to squirt ink.

Figure 36 District wise Cephalopodes Production

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It can ben seen from above figure that major contribution is coming from project zone. Kollam which
is a proposed PPC solely contrbutes more than 22.14% of the total production. In totalilty the zone
contrbutes more than 48% of total state Cephalopodes production. However, supply of raw material
will also be from contigous districts likeThrissur.

5.6 Assessment of Surplus of Various Marine Produce

As already mentioned, the cluster is a leading producer of marine Fish Production. Major spices
available in the cluster include:

• Elasmobranchs
• Oil Sardines
• Lesser Sardines
• Anchoviella
• Other Clupeids
• Perches
• Sciaenids
• Ribbon Fish
• Caranx
• Mackerel
• Soles
• Penaeid Prawns
• Stomatopodes
• Cephalopod

5.7 Estimated Raw Material Availability to the Food Park

The following table shows the raw material available to the CPC at Alapuzzah and 5 PPCs.
Estimation of quantities that would be available to the CPC and PPC has been made on the basis of
production in the catchment areas, marketable surplus and the potential of the food park to capture the
market share; some of these factors are listed below:

• Area and production of marine fish in the catchments of all PPCs

• Available marketable surplus in the area under PPCs
• Existing volume of trade in the catchments under various PPCs

Table 11: Raw Material availability for the park

Total Total % Estimated

Marketable
Production in Production Prod. Arrival at the
S.No Raw Materials Unit Surplus (95% of
state in 2013- in the In Park (10% of
cluster prod.)
14 Cluster in Cluster MS)
1 Elasmobranchs MT 2,884.00 1,708.00 60.00% 1,622.60 162.26
2 Oil Sardines MT 1,43,585.00 87,160.00 61.00% 82,802.00 8,280.20
3 Lesser Sardines MT 59,230.00 48,146.00 81.29% 45,738.70 4,573.87
4 Anchoviella MT 31,511.00 19,421.00 62.00% 18,449.95 1,845.00
5 Other Clupeids MT 14,481.00 9,113.00 62.93% 8,657.35 865.74

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6 Perches MT 29,358.00 11,155.00 38.00% 10,597.25 1,059.73
7 Sciaenids MT 8,613.00 3,217.00 37.35% 3,056.15 305.62
8 Ribbon Fish MT 14,776.00 6,886.00 46.60% 6,541.70 654.17
9 Caranx MT 26,595.00 11,254.00 42.32% 10,691.30 1,069.13
10 Mackerel MT 42,696.00 14,674.00 34.37% 13,940.30 1,394.03
11 Soles MT 26,595.00 11,254.00 42.38% 10,691.30 1,069.13
12 Penaeid Prawns MT 44,597.00 22,012.00 49.36% 20,911.40 2,091.14
13 Stomatopodes MT 9435 6187 65.57% 5,877.65 587.77
14 Cephalopod MT 13607 6555 48.17% 6,227.25 622.73
Total 24,580.49

Following assumptions have been made while estimating the raw material availability:

• Marketable surplus has been assumed to be 95% taking into consideration self-consumption
by the farm family and certain losses.
• It has been assumed that the Mega Food Park will be able to capture a share of 10 of the
marketable surplus

As estimated above, the proposed Mega Food Park would target around 24,580.49MT of marine fish
annually in the initial years of operation. This volume is likely to increase as the Mega Food Park will
be able to build a robust supply chain and backward linkages with the fisher men groups thereby
offering an increased value to all its stakeholders.

5.8 SWOT Analysis of the Cluster

The SWOT analysis of the cluster is represented below:

Strength Weakness

• Easy access to road, rail & airways
• Availability of land under possession
• Investment friendly environment
• Single window clearance facility by
Government.
• Strong technical and engineering capability
backed by top-notch scientific and
technical institutes.
• No extreme climatic conditions.
• Scarcity of land for industrial
development.
• The latest machineries are of high cost
and a single entrepreneur finds it
difficult to install the machinery.
• Unorganized sector finds it difficult to
meet the market requirement

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Opportunity Threat

• Export can be easily done through • Fragmented supply of raw materials

seaports like Kochi, Tuticorin,
• Water scarcity
• Food processing industries development
schemes from central government.

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LIST OF RAW MATERIAS TO BE PROCESSED AT THE SEA FOOD PARK
Sting Rays Skates Electric Rays Saw Fish

Oil Sardines Lesser Sardines Anchoviella Cephalopodes Soles

Herrings Shads Perches Stomatopodes Mackerel

Sciaenids Ribbon Fish Caranx Penaeid Prawns

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Supply Chain of Shrimp/Prawns, Squids & Fishes  
 

Page | 61 
 
  
Tasks & People involved at each stage in a supply chain of Shrimp/Prawns, Squids & Fishes 

¾ Shrimp/ Prawns 

Major Stages in  Tasks at each stage  People involved 

Supply Chain 

Capture and  • Washing to remove Filth  • In Case of Mechanized 

storage onboard  Trawl Boats fishing crew of 
• Sorting by variety  6‐7 per boat 
• Icing in 1:1 ratio  • In case of Motorized Boats 
fishing crew of 4 per boat 
• Storage in onboard containers 
• In case of traditional Boat 
1‐2 people 

Landing and  • Washing of the catch and  • Fishing Crew 

Auctioning  checking for colour change/foul 
odour  • Financier Middlemen 

• Presenting it at the auction site  • Buyers 
at the landing centre  9 Company Agents 
• Public auction conducted by  9 Agents of Peeling 
financier middleman  Shed 
• Icing and transportation to the  9 Peeling shed 
peeling shed/pre‐processing  owners 
unit 
9 Individual Peelers 

Peeling/Pre‐ • De‐heading and Deveining (if  • Peelers and Sorters 

processing  Required) 
• Supervisors 
• Sorting, Grading and Washing 
• Head load workers 
• Icing and storage in plastic 
crates  • Truck Drivers 

• Transportation to processing 
plants in vans (either open or 
insulated) 

Processing and  • Checks for quality  • Quality control personnel 

packaging  
• Washing, sorting and grading  • Sorters, Graders, Peelers, 
Supervisors and Machine 
• Processing into BF or IQF as the  Operators 

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case may be 

• Packaging and transfer to 
freezers 

Export  • Transport to port of dispatch in  • Head load workers at the 

insulated containers  plant and the port 

• Truck Drivers 

     

BF‐Block Frozen 

IQF – Individual Quick Frozen 

¾ Squids 

Major Stages in  Tasks at each stage  People involved 

Supply Chain 

Capture and  • Icing in 1:1 ratio  • In Case of Mechanized 

storage onboard  Trawl Boats fishing crew of 
• Storage in onboard containers  6‐7 (Minimum) per boat  

• In case of Motorized Boats 
fishing crew of 4 
(Minimum) per boat 

• In case of traditional Boat 
1‐2 (Minimum) people 

Landing and  • Washing of the catch and  • Fishing Crew 

Auctioning  checking for colour change/foul 
odour  • Financier Middlemen 

• Presenting it at the auction site  • Buyers 
at the landing centre  9 Company Agents 
• Public auction conducted by  9 Agents of Peeling 
financier middleman  Shed 
• Icing and transportation to the  9 Peeling shed 
peeling shed/pre‐processing  owners 
unit 
 

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Peeling/Pre‐ • De‐Skinning, filleting or slicing (if  • Peelers  
processing  required) 
• Supervisors 
• Icing and storage in plastic 
crates  • Head load workers 

• Transportation to processing  • Truck Drivers 
plants in vans (either open or 
insulated) 

Processing and  • Checks for quality  • Quality control personnel 

Packaging 
• Washing  and grading  • Graders, Peelers, 
Supervisors and Machine 
• Processing into BF or IQF as the  Operators 
case may be 
 
• Packaging and transfer to 
freezers 

Export  • Transport to port of dispatch in  • Head load workers at the 

insulated containers  plant and the port 

• Truck Drivers 

     

BF‐Block Frozen 

IQF – Individual Quick Frozen 

¾ Fish 

Major Stages in  Tasks at each stage  People involved 

Supply Chain 

Capture and  • Washing to remove Filth  • In Case of Mechanized Trawl 

storage onboard  Boats fishing crew of 6‐7 
• Sorting by variety  (Minimum) per boat 
• Icing in 1:1 ratio  • In case of Motorized Boats 
fishing crew of 4 (Minimum) 
• Storage in onboard containers  
per boat 

• In case of traditional Boat 1‐
2 (Minimum) people 

Landing and  • Washing of the catch and  • Fishing Crew 

Page | 64 
 
  
Auctioning  checking for colour change  • Financier Middlemen 

• Presenting it at the auction site  • Buyers 
at the landing centre 
9 Company Agents 
• Public auction conducted by 
financier middleman   

• Icing and transportation to the 
pre‐processing unit 

Peeling/Pre‐ • Check the quality and freshness  • Supervisors 

processing 
• Washing and grading  • Pre‐processors and graders 

• Removal of gut, trimming,  • Quality Inspectors 
filleting, deboning, cutting into 
portions or loins (based on the 
nature of the order) 

Processing and  • BF or IQF as the case may be  • Machine operators at 

Packaging  processing units 
• Packaging and transfer to 
freezers  • Packers at the processing 
plant 
 

Export  • Transport to port of dispatch in  • Head load workers at the 

insulated containers  plant and the port 

• Truck Drivers 

     

BF‐Block Frozen 

IQF – Individual Quick Frozen 

Page | 65 
 
  
Value Chain of Selected Species 
1 Elasmobranchs (Sharks, Rays) 

     
Capture and Storage 
onboard
 

                                                         (Shark –INR 200‐250) 
  (Rays – INR 140‐180) 

Landing and 
 
Auctioning 
 
(Shark –INR 210‐265)  (Shark –INR 210‐265) 
(Rays – INR 150‐190)  (Rays – INR 150‐190)
 

Local Markets &    Peeling/Pre‐
Fish Sellers  Processing 
 
(Shark –INR 250‐315) 
 
(Rays – INR 180‐230)
  (Shark –INR 265‐330) 
  (Rays – INR 190‐240)
 
Hotels/Restaurants 
 
Processing & 
  Packaging  
Retail 
  Outlets 

 
(Shark –INR 385‐480) 
  (Rays – INR 275‐350)
(Shark –INR 250‐315) 
 
(Rays – INR 180‐230)     
 
Consumers  Export 
 

Page | 66 
 
  
2 Oil Sardines  

 
Capture and Storage 
 
onboard Oil Sardine – INR 80‐100 
 

 
Landing and 
 
Auctioning 
 
Oil Sardine – INR 85‐105 Oil Sardine – 
  INR 85‐105

Local Markets &    Peeling/Pre‐
Oil Sardine – INR 
Fish Sellers  Processing 
  100‐125 

  Oil Sardine – 
INR 105‐130
 
 
 
Hotels/Restaurants 
 
Processing & 
  Packaging  
Retail 
  Outlets 
Oil Sardine – 
Oil Sardine – INR 100‐125    INR 150‐190
 
 
 
  Export 
 
Consumers 
 

Page | 67 
 
  
3 Lesser Sardines 

 
Capture and Storage 
onboard
 

 
Landing and 
Auctioning 
 

 
Local Markets &  Peeling/Pre‐
Fish Sellers    Processing 

   

Hotels/Restaurants  

  Processing & 
Retail  Packaging  
 
Outlets 
 

 
    

Consumers 
  Export 

Page | 68 
 
  
4 Anchoviella (Anchovy, Indian Anchovy) 

 
Capture and Storage 
 
onboard
 
Anchovy – INR 60‐70 
  Indian Anchovy – INR 70‐80 

Landing and 
 
Auctioning 
 

 
Anchovy – INR 65‐75 
Indian Anchovy – INR 75‐85   

Local Markets &    Peeling/Pre‐
Fish Sellers  Processing 
 
Anchovy – INR 85‐
95 
 
Indian Anchovy – 
INR 95‐110
 
 
 
Hotels/Restaurants 
 
Processing & 
 
Retail  Packaging  
 
Outlets 

 
Anchovy – INR 80‐90 
Indian Anchovy – INR 90‐100   
   
 
Consumers  Export 
 

Page | 69 
 
  
5 Other Clupeids (Herrings) 

 
Capture and Storage 
 
onboard
  Herrings – INR 60‐90
 
Landing and 
 
Auctioning 
 
Herrings – INR 65‐95   

Local Markets &    Peeling/Pre‐
Fish Sellers  Processing 
 
Herrings – INR 80‐
  115

 
 
 
Hotels/Restaurants 
 
Processing & 
 
Retail  Packaging  
Outlets 
 

 
Herrings – INR 80‐115 
 

    
 
Consumers  Export 
 

Page | 70 
 
  
6 Perches (Perch, Snappers) 

 
Capture and Storage 
onboard
 

 
Landing and 
Auctioning 
 

 
Local Markets &  Peeling/Pre‐
Fish Sellers    Processing 

 
   
Hotels/Restaurants 
 

  Processing & 
Retail  Packaging  
 
Outlets 
 

 
   
 
Consumers  Export 
 

Page | 71 
 
  
7 Sciaenids (Yellow Croaker) 

Capture and Storage 
 
onboard
 

Landing and 
 
Auctioning 
 

Local Markets &   
Peeling/Pre‐
Fish Sellers    Processing 

 
 
 
Hotels/Restaurants 
 
Processing & 
 
Retail  Packaging  
 
Outlets 

 
   
 
Consumers  Export 
 

Page | 72 
 
  
8 Ribbon Fish  
Capture and Storage 
 
onboard
 
Ribbon Fish – INR 
  100‐150

 
Landing and 
Auctioning 
 

 
Ribbon Fish – INR  Ribbon Fish – INR 
110‐160   110‐160

 
Local Markets &  Peeling/Pre‐
Fish Sellers    Processing 

Ribbon Fish – INR 
 
130‐190
 
Ribbon Fish – INR 
    140‐200
Hotels/Restaurants 
 

  Processing & 
Retail  Packaging  
 
Outlets 
 
Ribbon Fish – INR 
 
205‐290
Ribbon Fish – INR   
130‐190     
 
Consumers  Export 
 

Page | 73 
 
  
9 Caranx (King Fish, Trevally) 

 
Capture and Storage 
 
onboard

 
Landing and 
 
Auctioning 
 

 
Local Markets &    Peeling/Pre‐
Fish Sellers  Processing 
 

 
 
 
Hotels/Restaurants 
 
Processing & 
 Retail  Packaging  
Outlets 
 

 
 
 
Export 
   

 
Consumers 

Page | 74 
 
  
10 Mackerel  

 
Capture and Storage 
 
onboard
 
Mackerel – INR 120‐
  150

Landing and 
 
Auctioning 
 
Mackerel – INR 125‐
Mackerel – INR 125‐  
160
160 
 

Local Markets &    Peeling/Pre‐
Fish Sellers  Processing 
 
Mackerel – INR 150‐
 200

 
  Mackerel – INR 155‐
  205
Hotels/Restaurants 
 
Processing & 
  Packaging  
Retail 
Outlets 
 

Mackerel – INR 150‐  
Mackerel – INR 225‐
200 
  300

 
   
 
Consumers  Export 
 

Page | 75 
 
  
11 Soles 

 
Capture and Storage 
onboard
 
Soles – INR 130
 

 
Landing and 
Auctioning 
 

Soles – INR 135   
Soles – INR 135
 

 
Local Markets &  Peeling/Pre‐
Fish Sellers    Processing 

Soles –
  INR 160

 
    Soles – INR 170
Hotels/Restaurants 
 

  Processing & 
Retail  Packaging  
 Outlets 

  Soles – INR 245
Soles – INR 160 
 
   
 
Consumers  Export 
 

Page | 76 
 
  
12 Penaeid Prawns 

 
Capture and Storage 
 
onboard
 
Prawns – INR 50‐200 
 

Landing and 
 
Auctioning 
 

 
Prawns – INR 55‐210  Prawns – INR 55‐210
 

Local Markets &    Peeling/Pre‐
Fish Sellers  Processing 
 
Prawns – INR 65‐260
 

 
  Prawns – INR 70‐265
 
Hotels/Restaurants 
 
Processing & 
 
Retail  Packaging  
 Outlets 

 
Prawns – INR 100‐
Prawns – INR 65‐260    385
 
   
 
Consumers  Export 
 

Page | 77 
 
  
13 Stomatopodes (Lobsters, Crabs) 

 
Capture and Storage 
  onboard
  Lobster– INR 350‐400 
Crab – INR 130‐150 
 
Landing and 
 
Auctioning 
 
Lobster– INR 365‐
Lobster– INR 365‐420    420 
Crab – INR 135‐160 
 

Local Markets &    Peeling/Pre‐
Fish Sellers  Processing 
 
Lobster– INR 435‐500 
  Crab – INR 160‐200 

  Lobster– INR 450‐
  525 
 
Hotels/Restaurants 
 
Processing & 
  Retail  Packaging  

  Outlets 

 
Lobster– INR 435‐500  Lobster– INR 650‐
Crab – INR 160‐200  750 
 

   
 
  Export 
Consumers 
 

Page | 78 
 
  
14 Cephalopodes (Cuttle Fish, Squids, Octopus) 

 
Capture and Storage 
onboard
 

  Cuttle Fish– INR 110‐120 
Squid – INR 160‐240 
 
Landing and 
 
Auctioning 

 
Cuttle Fish– INR 120‐130  Cuttle Fish– INR 120‐130 
Squid – INR 170‐255    Squid – INR 170‐255 
 
Local Markets &  Peeling/Pre‐
 
Fish Sellers  Cuttle Fish– INR  Processing 
145‐155 
 
Squid – INR 205‐
320
 

    Cuttle Fish– INR 150‐165 
Squid – INR 215‐330 
Hotels/Restaurants   
  Processing & 
Retail 
  Packaging  
Outlets 
 

  Cuttle Fish– INR 220‐240 
Cuttle Fish– INR  Squid – INR 310‐‐475 
145‐155   
Squid – INR 205‐
320       

        
Consumers  Export 

Page | 79 
 
  
 

5.9 Generalizing the Margins in the Value Chain

Fishermen 
(Price as received in the 
Auction) 

Middleman/Agent 

(Up to 5%) 

Local Fish Markets/  Pre‐Processors 
Fish Sellers 
(Up to 25%) 
(Up to 20%) 

Processors/Exporters 

(Up to 45%) 

Page | 80 
 
  
6 Promoter’s Profile
Kerala State Industrial Development Corporation (KSIDC) is the premier Government agency
working for industrial and investment promotion in Kerala. Formed in 1961, KSIDC started with the
objective to promote, facilitates and finance large and medium scale industries and catalyses the
development of physical and social infrastructure required for industrial growth in the state.

A one stop-shop to set up an industry in Kerala and a single point contact for investments to the State,
KSIDC offers a comprehensive set of services that include developing business ideas, identifying
viable projects, feasibility study and providing financial assistance and guidance for implementation.

A nodal agency for foreign and domestic investments in Kerala, KSIDC facilitates clearances,
approvals and processes various incentive schemes for starting a new business ventures. KSIDC acts
as a spokesman of the State who spreads its industrial ethos besides being an interface between the
Government and the Industry.

KSIDC has over 5 decades of proven track record of attracting a commendable volume of investment
to the State. The corporation has so far promoted more than 750 projects in the State which include
pioneering organisations such as Cochin International Airport Limited, KELTRON, Hindustan Latex
Ltd, Kerala Minerals & Metals Ltd, Tata Tea Ltd, Harrisons Malayalam Ltd, BrahMos Aerospace
Trivandrum, Nitta Gelatin India Ltd., Geojit BNP Paribas Financial Services Ltd., Regional Cancer
Centre, Malabar Cements Ltd, Kerala State Drugs & Pharmaceuticals Ltd, Cochin Stock Exchange
Ltd, BSES Kerala Power Ltd, Kerala Ayurveda Pharmacy Ltd, Lakeshore Hospital & Research
Centre Ltd, Kerala Enviro Infrastructure Ltd, Kerala High Speed Rail Corporation Ltd and Kerala
Gail Gas Ltd. Etc.

KSIDC is also a forerunner in the industrial infrastructure development in the State of Kerala. It owns
and manages various Industrial Growth centers and Industrial Parks in the State. In a nutshell, KSIDC
is a single point contact for investments to the State and acts as a brand ambassador of the State
spreading its industrial ethos besides being an interface between Kerala and outside world. KSIDC is
led by a core group of seasoned professionals from various fields including Engineering,
Management, Finance and Law. The expertise of these professionals in planning and management of
various kinds of projects help the Corporation to provide comprehensive assistance for investors.
KSIDC, as a facilitator and financier for industries, offers wide ranging assistance in industrial
promotion. The key areas of KSIDC include the following:

• Identification of Investment Ideas

• Translating ideas into concrete proposals
• Feasibility Study, Project Evaluation
• Financial Structuring, Loan Syndication
• Assisting in Central and State Govt. Clearances
• Development and Administration of Growth Centers
• Industrial and Infrastructure development

So far, KSIDC has promoted more than 750 projects in the State with an investment outlay of Rs.5155
crores providing employment to approximately 72500 persons. KSIDC offers financial assistance and
support to medium and large scale industries in the State including service sectors like tourism, star
category hotels, resorts, hospitals, infrastructure projects, etc and where the constitution of assisted
unit is in the nature of Private/ Public Ltd Company.

Page | 81 
 
  
Usually assistance is extended to projects with an investment of Rs.200 Lakh and above and the term
loan assistance is limited to a maximum of Rs.2000 Lakh in a project and it can go up further in a
single project with State Government's permission. The definition of the medium and large scale
manufacturing industries as defined by the Central Government is applicable to Corporation also.

KSIDC, the premier promotional agency of the State has been undertaking different types of industrial
investment and promotional efforts like Entrepreneur Meets, Industrial Festivals, Seminars,
Symposiums, Workshops, NRI Meet, Road Shows, Industrial visits to foreign countries, Exhibitions,
etc.

6.1 Single Window Clearance

The Government of Kerala has introduced the Single Window Clearance System in the State, with the
intention of expediting the issue of various clearances for new Industrial Projects, effective from 1st
June 2000. A final clearance for all new projects, either approval or rejection, is to be given within a
specific period from the date of submission of application, as per the system. This has been made a
statutory requirement under the Kerala State Single Window Clearance Boards and Industrial
Township Area Development Act 1999.A State Level Board for aiding medium and large-scale
industries has been constituted in this regard, headed by the Chief Secretary, which shall issue
clearances within a timeframe of 45 days. Kerala State Industrial Development Corporation has been
designated as the Single Contact Point and the Convenor of the State Board. In a similar manner,
District Level Boards have been constituted for clearing small scale industrial undertakings, with the
District Collector as the Chairman and General Manager, District Industries Centre as the Convenor;
the stipulated time frame being 60days.Industrial Area Boards have also been set up in the various
industrial areas of the state for the clearance of projects being set up in these areas. An officer not
below the rank of District Collector is the Chairman in each Board, with the Designated Authority of
the Industrial Area as Convenor, to issue clearances within a period of 30 days. A composite
application form has also been formulated, which the entrepreneur need to submit only at the
designated contact points. With the introduction of the Single Window Clearance System, setting up
of Industrial projects in the State is expected to become a hassle free operation.

6.2 KSIDC‐Industrial Growth Centers (IGCs) & Industrial Parks

KSIDC has already implemented full-fledged Industrial Growth Centres in Alappuzha,Kozhikode and
Kannur Districts. All the three IGCs are multi-product Industrial Parks. Atthe Kannur IGC, an SSI
Park is also envisaged, in addition to large number of industries inthe medium & large scale sector. At
Kozhikode IGC, a food processing park, a plastic engineering park and industrial units in medium &
large scale sectors are envisaged. KSIDC is also promoting a Light Engineering in Palakkad.The
Corporation is establishing a Life Science Park in Thiruvananthapuram to promote bio-technology,
nano-technology and other sunrise industries. An Electronic Hub is being promoted in Kochi to
establish electronic hardware industries, R& D centres, design centres and supporting infrastructure.
At Kuttiyadi, in Kozhikode District, KSIDC is promoting a Coconut Industrial Park to establish
various value added coconut based food products and coconut wood based units. In Thrissur District,
KSIDC intends to promote a Food and Natural Fibre Park at Kodungallur.

6.3 Financial Strength of the Promoter

2013-14 2012-13 2011-12
Turnover( Rs. Lakhs) 54.78 59.66 46.71
Profit before tax( Rs. Lakhs) 43.51 57.55 39.33

Page | 82 
 
  
Profit after tax( Rs. Lakhs) 30.49 18.97 26.16
Net Worth( Rs. Lakhs) 5 530.29 501.91 484.99
 
The annual reports of KSIDC for the years 2013-14, 2012-13 and 2011-12 along with the Auditor’s
Certificate certifying the net worth of KSIDC are annexed. With its vast experience in the industrial
and infrastructural arena, KSIDC is well equipped to carry out the Mega Food Park proposal focusing
the marine products sector.

6.4 Management Team of the Promoter

KSIDC team includes a core group of skilled professionals from various fields like Engineering,
Management, Finance and Law. The following table showcases the management team of KSIDC.

Dr. M. Beena IAS

Managing Director
(O): 0471-2318189, 2318922
mdksidc@vsnl.net

Shri. B. Jyothikumar
Executive Director
(O): 0471-2318922
Cell: +919544098891
jyothikumar@ksidcmail.org

Smt. A. Malini Shri. Anand Sarma

General Manager General Manager
(O): 0471-2318922 (O): 0471-2318922
Cell: +919447128072 Cell: +919947033420
malini@ksidcmail.org asarma@ksidcmail.org

Shri. K. G. Ajithkumar Shri. J. J. Ranjith

Dy. General Manager Dy. General Manager & CFO
(O): 0484-2323010 (O): 0471-2318922
Cell: +919447326499 Cell: +919387494436
ajith@ksidcmail.org ranjith@ksidcmail.org

Shri. K. Padmanabhan Shri. G. Asoklal

Nair Dy. General Manager
Dy. General Manager (O): 0471-2318922
(O): 0471-2318922 Cell: +919447004971
Cell: +919447030957 asoklal@ksidcmail.org
kpnair@ksidcmail.org

                                                            
5
 Formula: Share Capital + Reserves & Surplus 

Page | 83 
 
  

Shri. G. Unnikrishnan Shri. K. Sureshkumar

Dy. General Manager Company Secretary & Dy. General Manager
(O): 0471-2318922 (O): 0471-2318922
Cell: +919387736309 Cell: +919446038922
unni@ksidcmail.org sureshkumar@ksidcmail.org

Shri. R. Prasanth Shri. R. Ravichandran

Dy. General Manager Dy. General Manager
(O): 0484- 2323010 (O): 0471- 2318922
Cell: +919847340444 Cell: +919847351444
pransanth@ksidcmail.org ravichandran@ksidcmail.org

Shri. M.T. Binilkumar Shri. Jose Kurian Mundakkal

Asst. General Manager Asst. General Manager
(O): 0484- 2323010 (O): 0484- 2323010
Cell: +919846280886 Cell: +91944658005
binil@ksidcmail.org josekurian@ksidcmail.org

Shri. K. Aravindakshan Smt. V. R. Usha

Asst. General Manager Asst. General Manager
(O): 0484- 2323010 (O): 0484- 2323010
Cell: +919847005367 Cell: +919446066361
aravind@ksidcmail.org ushasanju@ksidcmail.org

Shri. Sebastian Thomas Shri. Rajesh Jacob

Asst. General Manager Asst. General Manager
(O): 0484- 2323010 (O): 0484- 2323010
Cell: +919447014411 Cell: +919249731042
thomas@ksidcmail.org rajesh@ksidcmail.org

Shri. Biju. B. G.
Asst. General Manager
(O): 0471-2318922
Cell: +919847936409
bijubg@ksidcmail.org

 
 
The organogram for the management team for the proposed Sea Food Park is as follows:
 

Page | 84 
 
  
Figure 37: Organogram of Promoter's Organisation

 
 

Page | 85 
 
  
7 Project Description
The KSIDC Marine Mega Food Park has been conceptualized, planned and designed based on the
demand driven hub and spoke model with strong backward and forward linkages with the objective to
create modern enabling infrastructure for setting up food processing industry. It contains three vital
components namely the Central Processing Centre (CPC) at its Hub and Spokes are in the form of
Primary Processing Centres (PPC) and Collection Centers (CC) linked by the agro-logistics network.
The network would also connect the CPC and PPCs with demand centers major retails markets in tier
1 and tier 2 cities.

7.1 Identification of Major Activities/Operations

As mentioned in the previous chapters, catchment area of the proposed Sea Food Park is ideally
located in the major marine landing cluster of the state. On the basis of cluster strengths of the cluster
such as proximity to major consumption centers, processing centers, ports, availability of a wide
product mix etc., following activities have been identified to be undertaken in the proposed Sea Food
Park;

1. Introduction of efficient backward linkages to get desired quality and optimum volume of
produce
2. Collection of various sea food species
3. Movement of produce through cold chain, wherever required, in order to enhance shelf life
and thereby reduce losses
4. Processing operations such as deep freezing and cold storage etc.
5. Training and Skill Development
6. Establishment of forward linkages (common marketing and branding)

7.2 Project Components

The project would have following components in order to cater to the above mentioned activities;

• Central Processing Centre (CPC)

• Primary Processing Centres (PPCs) and Collection Centres

Description of the facilities proposed under each of the above components is described in the
following sections.

7.2.1 Central Processing Centre

The CPC is the hub of value addition and combines processing, collection, quality control and food
testing, trade and other related activities. These functions are spatially and ecologically clustered to
create economies of scale through mutually beneficial use of infrastructure. To augment the
efficiencies of processing within the CPC, adequate basic infrastructure will also be developed such as
roads, power, water supply, waste management etc. along with specialized storage and value added
processing infrastructure like cold storage, deep freezing unit, deboning & canning unit etc. Along
with this a training and skill development center is also proposed in the sea food park.

7.2.1.1 Core Processing Infrastructure

KSIDC proposes to provide a number of core processing facilities which would be used as common
infrastructure for all the end users of the park. Following are the proposed core processing facilities in
the park:

Page | 86 
 
  
Table 12: Civil Works for CPC

Sr. Built Up
Components Capacity
No. (In Sq.m)
A. Central Processing Centre (CPC)
1. Core Processing Facilities
1 Warehouse 1000 MT 800
2 Cold Storage 3000 MT 2142
3 Deep Freezer 3000 MT 3000
4 Deboning and Canning Unit 50 tons/day 1000
Quality Control & Food Testing
5 300
Lab
Total (1) 7,242
 

Considering such production and the proximity and good connectivity of the proposed Sea Food Park
to major consumption areas, it is expected that several processing units would come up in the Park
that would use these raw materials for processing. It is estimated that around 20-25 processing units
would be able to come up in the park.

It may be noted that the facilities have been proposed based on inputs and suggestions of the
implementing agency and field studies conducted by the PMC. Further, the proposed facilities have
also been arrived at based on the Mega Food Parks Scheme Guidelines under which this project has
been approved.

Further, the components under common core infrastructure have been arrived at keeping in view the
prospective potential units under sea food processing segment that are expected to be established in
the Park. It has also been taken into account that the common infrastructure components shall be made
available to these units under a User Fee basis model or could also be leased out to them under
requisite arrangements.

Based on the above, following components are being proposed along with the rationale, proposed
capacities and indicative area requirement, etc.

Proposed Facility: Dry Warehouse

Proposed Capacity: 1000 MT
A dry warehouse is proposed for storing ancillary products like packaging materials, crates, forklifts
etc. which would be needed for the operations of the park.

Proposed Facility: Cold Storage

Proposed Capacity: 3000 MT
(a) Common cold storage of 3000 MT with a capacity of about 3, 45,000 cartons capacity shall be
provided in park. It will be developed with expandable multi chamber to meet to the periodic
requirements. A separate approval shall be acquired from EIC so that it can have multiple uses
for other trades also when seafood season is at lowest. Off season the cold store can still cater to
growing needs of other industries like ice cream, fruits, and other perishable items in retail chain.
The IQF products would be stored in pallets to minimise the damage to cartons. The location of
the cold store shall be placed with sufficient for multiple loading decks and vehicle parking.
(b) Design Aspects –

Page | 87 
 
  
(i) Configuration – Multi chamber cold storage having multiple chambers with each
chamber entailing anterooms, docking area, grading/ sorting area, crates/ palletized
storage system
(ii) Construction guidelines –
• Floor would comprise of base concrete that will be 30 cm high from ground
level
• The cold rooms should be provided with at least one common ante room to
avoid direct infiltration of warm ambient air in to the cold rooms
• The process grading and sorting area should be maintained at comfortable
conditions by using evaporative cooling particularly in dry environment. In
high humidity condition, air-conditioning with humidifier control to maintain
the required temperature can be provided. Dock shelters can be provided in
the dispatch areas of the pre-cooled or chilled product.
• Rodent proof civil structure and proper drainage of water is to be ensured.
(iii) Thermal insulation – Cold chambers have to be insulated on walls, ceilings/ roofs and
floors with proper insulating material of adequate thickness with provisions for vapour
barrier on outer side and proper cladding or cover on inner side. The commonly used
insulation materials are expanded polystyrene, rigid polyurethane foam, rigid phenolic
foam, mineral wool/ glass wool, extruded polystyrene.

(iv) Refrigeration – Designing of a cold store and choosing suitable cooling system
elements are important for effective cooling and creating suitable storage conditions
for various commodities to be stored. The load of the heat consists of the transmission
heat, infiltration heat, product heat, other heat sources for calculation of the cooling
load. The specific heat load and capacity of the evaporator, amount of the cooling gas,
specific heat load of condenser and capacity of condenser, pressure heat, power of the
compressor, cooling effect must be calculated for choosing the cooling element.

Proposed Facility: Frozen Storage

Proposed Capacity: 3000 MT

It is known that seafood being highly perishable in nature is processed in IQFs for lengthening their
shelf life and sale ability. As the proposed units in the sea food park will be involved in sea food
processing only, a deep freezer facility would be required for storing the processed and packaged
products. The deep freezer will operate at -24 degree centigrade or lower. Fish are highly perishable
with process of decomposition starting almost as soon as it is taken out of the water. Most fish farms
kill the fish by putting the fish in ice slurry. This serves two purposes. First, the low temperature
immobilizes the fish instantly and prevents it from getting damaged as it trashes about. Secondly, the
low temperature effectively keeps the fish fresh before it can be packed or processed for marketing.
After harvest, fish should be iced, chilled or subject to freezing to maintain its freshness and quality.
The frozen fish products maybe whole (excluding livers and roes) or deboned. It may also be
available in prime cuts, bellies, backs, heads and tail. Freezing hinders the deteriorative activities of
microorganisms, either partly or entirely. In India, bulk of frozen fish products goes to the export
market (USA, Canada, Japan) as the local market prefers fresh-chilled fish. Quick freezing is done
using blast freezers for frozen, whole bangus that are exported to Guam and the USA. Contact plate
freezing is also used for boneless and smoked boneless fishes. It is recommended that freezing

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temperature of -40°C. to -18ºC/ -20ºC is required to maintain its quality. The recommended freezing
temperature of -40°C can be attained only in industrial freezers.

Proposed Facility: Deboning & Canning Unit

Proposed Capacity: 50 Tons per day

Deboning and Canning Unit is seen as a value added process for the sea food sector. Deboning makes
fish more acceptable to a wider range of consumers so it is one way of value adding. These are sold
fresh-chilled, smoked, marinated and chilled, or individually packed and frozen. The process is
explained below:
1. The fish is washed in chilled 30 to 50 ppm chlorinated water
2. The fish may or may not be scaled and trimmed. The anal fin may be removed by making a
small cut around the base of the large fins and then pulled forward to remove the fin bones
and other nuisance bones. Thereafter the fish is split down the dorsal side. Then the knife is
tunred flat and the cut is extended from the tail to the head by running the edge of the knife
along the backbone. Finally, the fish is laid open like a butterfly fillet and then the gills and
internal organs are removed.
3. In this step, the fish is laid flat on its skin and the backbone is removed.
4. The fish is then put flat on a shallow tray and then the rib bones are pulled out with the aid of
forceps. Afterwards, a superficial cut is made along the dent of the dorsal muscle from the
head to the tail.
5. The spines are then removed on the ventral side in the same manner and the filamentous y-
shaped spines are taken out along the lateral line
6. Then the deboned fish is dipped in chilled 1% brine to remove the excess blood
7. In this step, it is pack in plastic bag, and kept in deep freeze. (Deep freezing in a blast freezer
at -40°C is recommended for longer shelf life and is necessary to meet export standards)
8. Alternatively it can be also sliced into different cuts (belly, etc) before being packed and
frozen. It may also be brined and smoked, or marinated prior to packing and freezing

The process of Canning involves the application of sufficient amount of heat to the food material
contained in hermetically sealed containers with the aim of destroying spoilage agents that would
otherwise spoil the fish at normal storage conditions. Canning remains as one of the best methods of
preventing spoilage that result from microbial action. The process must be adequate to eliminate heat
resistant spores of Clostridium botulinum or other heat resistant spores. Strict monitoring should be
implemented to be assured that adequate processing is given to the product to ensure that health risk
organism (pathogenic) are destroyed.

The deboning process is as follows:

Figure 38: Processing of Deboning

1  2  3 

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4  5  6 

     

7  8  9 

     

7.2.1.2 Basic Enabling Infrastructure

Following are the basic enabling infrastructure components proposed in the park:

• Bituminous roads and foot paths

• Site development, compound wall and gate complex
• Common parking facility
• Water treatment plant and supply system
• Storm water drains and sewerage collection network
• Sewerage treatment plant
• Recycle water system
• Electrical substation and Internal Electrical distribution system
• Internal Communication network
• Street lighting
• Fire fighting system and security
• Weighbridge

7.2.1.3 Non-core Infrastructure

Following are the components of enabling non-core infrastructure proposed in the park:
Table 13: Civil Works for Non-Core infrastructure at CPC

Built Up
Sr.
Components
No. (In Sq.m)

A. Central Processing Centre (CPC)

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1. Non-Core Processing Facilities
1 Administrative Buildings 1000
2 Canteen 500
3 Creche 500
4 Workers amenities 1000
5 Training and Skill Development Center 800
Total 3800
 

7.2.1.4 Developed Plots for Setting up Units

A total of 30 acres have been demarcated for development of plots for entrepreneurs to set up food
processing facility at the Central Processing Center. The details of area allocated to these plots are
given in later sections.

7.2.1.5 Standard Factory Design Sheds for SMEs

An area of around 2 acres has been allocated for development of standard factory design sheds for
SME’s to set up plug and play manufacturing facilities. It has been planned to provide for setting up
around 40 nos. of SMEs in SDF facility. These factory sheds would be built in line with the
requirements of a modern and efficient food processing unit. The building would be built with RCC
structure and food grade finishes as per the requirements of the industry.
 

7.2.2 Primary Processing Centers

The Central Processing Center would be backed up by an efficient and sustainable supply chain.
Based on surplus raw material available and infrastructure assessment, potential locations for Primary
Processing Centers (PPCs) have been identified and mapped which would be supported by cold chain
infrastructure to reduce wastages and check quality deterioration. Strong backward linkages would be
established by involving fishermen socities/groups and federating them into appropriate entities
wherever possible.
PPCs would provide for primary processing facilities such as peeling, cleaning, sorting and grading
activities, mechanical weighing and crating of produce. While they would be directly linked to the
CPC, they would also be linked to fresh retail markets in major consumption centers in neighboring
states. Produce collected at the PPCs would be transported using reefer vans for perishable produce
while all produce shall be transported in ambient condition. PPC will also serve as main interface
point with fishermen and would be the points of price discovery for the farmers. These centers may
also have facilities for transfer of technology, information kiosks, supply of inputs etc. A total of 5
PPCs have been proposed to serve the CPC of KSIDC. The locations of PPCs are depicted in the table
below:
Table 14: PPC Area

S. No. PPC Location Area

1 PPC-Thoppumpady 0.5 Acre
2 PPC-Vypeen 0.5 Acre
3 PPC-Munambam 0.5 Acre

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The PPCs at Aroor and Neendakura not required since they are already established by KINFRA and
Matsyafed. It is proposed to use them on rental basis.
Thus, each of the PPCs is located in different districts but within a periphery of 14-100 km from the
CPC to leverage the production potential of the area as well as to provide better infrastructure to local
farmers. The prime considerations for selecting the locations of PPCs within the ‘Zone of Influence’
of the project are as follows:

• PPCs should be located in such a way so as to ensure uniform distribution over the ‘Zone of
Influence’ as this will balance the collection of raw materials.
• PPCs should be selected in order to have an optimum area under Zone of Influence to ensure
a wider product mix to support round the year processing operations at the CPC
• PPCs should be located in areas commanding adequate availability of processable surplus.
• The selected locations should have good road and/ or rail connectivity.

7.2.2.1 Core Processing Infrastructure

Core processing infrastructure proposed at PPCs is represented in the table below:

Table 15: Core Processing at PPC

Built Up
Sr. No. Component Capacity
(In Sq.m)
B.1: Core Processing Infrastructure
1. PPC-Thoppumpady
Pre-Processing for cleaning, Sorting,
1 LS 20
Grading
2 Flake Ice Plants 10MT/day 900
3 Quality Testing lab 100
4 Cold Storage 100
I Total at PPC-1 1120
2. PPC-Vypeen
Pre-Processing for cleaning, Sorting,
1 LS 20
Grading
2 Flake Ice Plants 10MT/day 900
3 Quality Testing lab 100
4 Cold Storage 100
II Total at PPC-2 1120
3. PPC-Munambam
Pre-Processing for cleaning, Sorting,
1 LS 20
Grading
2 Flake Ice Plants 10MT/day 900
3 Quality Testing lab 100
4 Cold Storage 100
III Total at PPC-3 1120
Total (B.1 =I + II + III) 3360

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Proposed Facility: Pre-processing, Sorting, Grading
Proposed Capacity: 6 Ton/Hr at PPC
Once the fish is purchased, it will be transferred to plastic crates, iced, transported to pre-processing
centers. The following activities will be carried out at the pre-processing centres for fishes, squids
etc.:
ƒ De-skining
ƒ The fish is washed, tails and fins are removed, graded, gut is removed and stored in ice and
salt water for weight gain
In case of prawns/shrimps, the following activities will be undertaken here:
ƒ De-heading and deveining ( if required)
ƒ Sorting, grading and washing
ƒ Icing and storage in plastic crates

Proposed Facility: Flake Ice Plants

Proposed Capacity: 10 Ton/day at PPC
Flake ice is small ice in flat pieces. 
It is used in cooling seafood, in meat processing and in a whole
range of industrial processes. It is briefly explained below:

Flake ice production

The classical flake ice of high quality is produced on refrigerated drums by spraying water onto the
drum’s ice cold surface where it freezes immediately. After sub-cooling to -7 °C the ice is sheared
from the surface by the ice removal tools and it falls out of the bottom of the ice maker into a
refrigerated ice storage located below the ice plant.

Benefits of flake ice: The benefits of flake ice are as follows:

1. Flake ice has the highest surface area per ton of ice, providing a greater cooling efficiency
than any other ice.
2. Short melting time by the use of flake ice compared to any other ice
3. Shortest mixing times of the batching plant compared to any other ice as flake ice melts
rapidly.
4. Higher lifespan of the batching plant equipment and cost savings due to the short mixing
times
5. The latent heat, the principal source of the cooling energy is 100 % or even higher as the flake
ice is sub-cooled (-7 °C).
6. Due to the dryness, the cooling input of flake ice can be accurately calculated and its effects
on the mixtures temperature are quickly apparent.
7. Flake ice is free flowing, its flakes remain crisp and do not stick together nor do they form
blocks.
8. Easy to be stored and levelled inside a refrigerated ice storage with a fully automatic ice rake
system
9. Easy to transport via screw conveyors or blowing system to any location required
10. No losses due to hot gas defrosting of the freezing surface. Flake ice is sheared from the
freezing surface by the ice removal tools.

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Figure 39: Benefits of Ice Flakes

Vertical Crate Washing

This pertains to methods and apparatus for washing and drying collapsible plastic crates. In the
project, the plastic crates will be used. One particularly popular form of plastic crate has hinged sides
which fold flat or knock-down to save space when the crate is handled, shipped or stored whilst
empty. Because such knock-down crates are re-used to ship food products, they must be clean before
every use. Crates of this kind will be used in large numbers, making the operational speed of the
washing machine very important. Further, the machines previously used to wash crates occupy a large
amount of floor space.

In general, the conventional machines used for crate washing position the crate on a conveyor in the
same orientation as when the crate is in use, with the bottom portion of the crate parallel with the
ground. In this orientation, the width of the machine is larger than it needs to be. In addition, the
hinges are not accessible to water spray nor properly cleaned.

Water and dirt are trapped in recesses formed in the crate. Both washing and drying are hindered
because gravity has no effect on the flow of water formed on the large upwardly facing surfaces
which the crate presents in this orientation. Further, conventional machines require mechanical
adjustment each time crates of different sized are loaded. The washing device comprises of an
overhead conveyor extending from a loading station to an unloading station along a path. The path is
functionally subdivided. The path being, in part, defined by guide rails on both sides of the path,
which are spaced apart to allow a collapsible plastic crate to be suspended there between from the
overhead conveyor and conveyed from the loading to the unloading station. There is at least one
functional subdivision having vertical rows of nozzles which discharge horizontally into the path.

There is also provided a method of washing collapsible crates. The method comprises hanging an
open crate vertically from a conveyor and passing the crate along the conveyor with a base of the
crate perpendicular to the ground and generally parallel with the conveyor and passing the crate
through functional subdivisions of a washing device. To implement the objects of the invention,
collapsible plastic crates are laid out into the fully open position and washed in a vertical orientation.
When the crates are impacted by pressurized liquids and gasses, the sides 12 will pivot about their

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hinges. Rather than suppress this motion entirely, guide rails 50 are provided down the length of the
machine. The guide rails 50 limit the travel of the pivoting sides but allow the sides to pivot to some
degree. This pivoting motion exposes different areas of the hinges and promotes more complete
washing and drying than would be obtained.

Reefer vans

Refrigerated vans are proposed for transportation of raw material/semi-processed goods from PPCs to
CPCs and from CPCs to consumption markets. Based on the availability and processing levels, 1
reefer van each has been proposed at each CPC for transportation of raw material/semi-processed
goods from PPCs to CPC and then to consumption markets.

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8 Site Analysis, Master Plan
 

8.1 Site Location

The proposal to establish the Mega Food Park is in 65.98 acres of land in Pallippuram, Cherthala in
Alappuzha District.

Figure 40 Location of the Proposed Mega Food Park

8.1.1 Land Ownership

The said land for the CPC has already been registered in the name of the Government Agency
namely “M/s Kerala State Industrial Development Corporation (KSIDC)”. Copy of the
registered title deed has been enclosed as Annexure.

8.1.2 Land Conversion and Approval

KSIDC has received the permission from Govt. Kerala for Industrial purposes.

8.2 Site Configuration

The entire extent is owned by KSIDC. The land was acquired for establishing industrial park by
KSIDC. An extent of 68.19 acres of land in Pallippuram Village in Cherthala Taluk in Alappuzha
District is proposed for establishing the Mega Food Park by KSIDC.

The proposed Mega Food Park is well connected with adequately wide road which can cater 40 foot
container trucks. The nearest Highway is at Aroor and the distance to the NH is 15 KMs. The nearest
railway station is Cherthala situated at a distance of 10 KMs. The distance to the Kochi International
Airport is 50 Kms and the seaport at Kochi is 35 KMs.

110KV electrical lines are passing through the proposed project site and the feasibility for an 110KV
substation at the site has been established and it is proposed to set up the substation. The pipelines of

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Kerala Water Authority (KWA) are passing through the location and internal water supply scheme
will have to be established from the tap off point in this pipeline. The Aroor/Cherthala belt is well
known for seafood industries. There are also many preprocessing centres in the locality catering the
seafood sector. Considering all these factors, the selected site is ideal for establishing the Mega Food
Park.

The following table provides the basic site features:

Place Pallippuram, Cherthala

Extent of land 68.19 acres
Village Pallippuram
Taluk Cherthala
District Alappuzha
Nearest Town Cherthala (7 km)
Nearest Railway Station Cherthala (8 km)
Nearest Airport Kochi (70 km)
Nearest Seaport Kochi (30 Kms )

8.2.1 Climatic and Meteorological Conditions

Pallipuram has a tropical climate. At an average temperature of 33.1 °C, May is the hottest month of
the year. In January, the average temperature is 24.4 °C. It is the lowest average temperature of the
whole year. At an average temperature of 33.1 °C, May is the hottest month of the year. In January,
the average temperature is 24.4 °C. It is the lowest average temperature of the whole year.
Precipitation here averages 1118 mm. Precipitation here averages 1118 mm. Between the driest and
wettest months, the difference in precipitation is 309 mm. The average temperatures vary during the
year by 8.7 °C.

8.2.2 Topography and Ground Profile

There is very general slope in the site and it is mostly towards the north. There is a considerable
amount of vegetation in the site and the same shall be removed before commencement of works.
There is an kutcha road passing through the site and a temporary structure which shall be removed
in due course.

Common amenities including treatment plants and water supply infrastructure have been proposed
near the northern periphery of the plot.

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Figure 41 Survey Plan of the Food Park

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8.3 Existing On-Site Features

Figure 42 Existing onsite features

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8.4 Master Plan for the Park

8.4.1 Planning Concept

i. The total site area is 68.19 acres, within which the park is to be set up

ii. The concept of the proposed Mega Food Park is derived based on the requirements
of the entrepreneurs, functionality with self contained facilities. The Food Park shall
be environment friendly facility comprising of physical and common infrastructure
components interwoven with green spaces. The master plan has been conceptualized
considering the opportunities and constraints of the site

iii. The concept is guided by the applicable development guidelines of the Kerala Town
and Country Planning Department. The design philosophy revolves around
prioritizing various aspects viz., circulation, land suitability, environmental
sustainability and topography to optimize various land uses

iv. The master plan is based on modern planning concepts of providing good and
efficient internal movement with supporting infrastructure and facilities in an
aesthetic environment. The concept is to maintain a favorable orientation which
shall provide good functionality to all the components of the Mega Food Park.
Provisions of National Building Code and prudent engineering practice have been
followed in preparing the Master Plan.

8.4.2 Master Plan

(a) The guiding principle of the master plan is to incorporate the principles of an
eco-industrial city by maximizing green space and open spaces, and provision
of green belts. The design envisages functional and accessible work places by
incorporating prudent and scientific planning principles and includes the
following:

(i) Rectangular plots, wherever possible, with ratio of plot width to

length of 1: 1.5 to 1:2
(ii) Location of Industrial and other Basic enabling, core & non-core
infrastructure
(iii) Providing efficient access to the main road
(iv) A central common facility center interwoven with green spaces
(v) Provision of infrastructure facilities based on the site characteristics,
topography and functionality

(b) The design brief specifies provision of all plots with supporting physical and
common infrastructure. Various infrastructure components planned in the Park
are presented in the Table below:

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Table 16: Infrastructure Components

S. No Infrastructure
1 Basic Enabling Infrastructure
2 Non Core Infrastructure
3 Core Infrastructure
4 MSMEs
Components
• Roads and Parking
• Water Supply System
• Storm Water Drainage System
• Sewage Treatment Plant
• Effluent Treatment Plant
• Electrical Distribution System
• Street Lighting System
• Common Facilities such as
Administrative Block, Bank/ATM,
etc.
• Canteen
• Creche and workers’amenities
• Training Centre etc
• Warehouse
• Cold Store and Deep Freezer
• Deboning and Canning Unit
• Quality Control and Food Testing
Lab
• Standard Design Factories

8.4.3 Land Use Plan

The land use plan places strong emphasis on open and green spaces and henceforth
area under industrial use is about 64.98% of the aggregate area. The proposed land use
distribution pattern is presented in the Table below:

Table 17: Land Use Distribution

Land Use Area (Acre) Percentage

Plots 46.60 68.35
Common Facilities 2.32 3.41
Green/Open spaces 2.52 3.70
Roads 6.87 10.08
Production support
facilities and SDFs 9.87 14.47
Total 68.18* 100.00
*Total area: 68.19

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8.4.4 Development Guidelines

The development guidelines laid out by the Kerala Town and Country Planning
Department, for industrial land use have been followed as the development guidelines
for the proposed Park as described below:

(a) Leasable Area

The net area for plots or building sites (i.e. the leasable area) in the proposed
Mater Plan has been arrived at after providing for essential basic infrastructure
facilities as per the master plan philosophy followed as above and is around
64.98% of the total site area. Accordingly, the total leasable area in the Mega
Food Park is about 46.60 acres.
(b) Open Area
The extent of open space has been provided at about 10.06% of the total area
of the Park
(c) Rules pertaining to Roads
• The proposed access to the Park shall connect with the existing access
roads with a well-defined access to the development
• All roads shall be of minimum 8 meters width for lengths up to 226 meters
• Road width shall be 24 meters for lengths up to 843 meters, 18 meters for
lengths 458 meters and 15 meters for lengths 561meters
• Corners of two streets shall be chamfered with a 9-meter chamfer
• All roads shall be provided with marginal trees planted alternately on the
opposite sides at a distance of not less than 9 meters from each other and at
a distance of not less than 1 meter from the road edge

(d) Building Regulations for Industrial Buildings

• The building design would follow the building regulations as per Kerala
Town and Country Planning Department.

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Figure 43 Master Plan Layout of the Food Park

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9 Proposed Enabling Infrastructure
9.1 Site Development & Road Network

9.1.1 Site Development, Boundary Wall and Gate House

(i) Development of ground including site grading is a prerequisite for starting of
any construction activity at site. Site preparation shall consist of cutting,
removing and disposing of all materials such as bushes, shrubs, stumps, roots,
grass, weeds, top organic soil, rubbish, ordinary rock and hard rock etc., from
the area of works so that the sub base on which the infrastructure is developed
is well prepared for site grading works. The task shall include necessary
excavation, backfilling of pits resulting from uprooting of trees and stumps to
required compaction, handling, salvaging, and disposal of cleared materials
etc. Site grading will include cutting, filling and compacting the filled up earth
so as to integrate the micro drainage pattern of the site to the proposed storm
water drainage system.
(ii) It is proposed to demarcate the entire site of the Park by providing an
aesthetically designed and structurally safe boundary wall, in brick works with
RCC columns. The site shall be accessible by a Gate House structure with
entry/exits and a security office.
(iii) Estimated Cost
For the purpose of estimating the block costs, CPWD norms for quantities and
prevalent market rates have been assumed. Based on the above, the cost of site
development, gate house and the boundary wall is estimated at Rs 572.25 lacs
as presented in the Table below:

Table 18: Estimated Cost of Site Development and Boundary Wall

Unit Rate Amount

# Description Quantity Unit
(Rs.) (Rs. Lacs)
1 Compound Wall 3125.00 Rmt 8000.00 250.00
2 Site Development 34.00 Acre 750000.00 255.00
3 Gate House 1 LS 4000000.00 40.00
Contingencies @
4 27.25
5%
Total 572.25

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9.1.2 Road Network

(i) The proposed road network in the Park would comprise of the following
components:
• 653 m of main carriageway with a 14 m ROW for main roads
• 71 m of main carriageway with a 12 m ROW for internal roads
• 790 m of main carriageway with a 10 m ROW for internal roads
• 1192 m of main carriageway with a 9 m ROW for internal roads
• 179 m of main carriageway with a 7 m ROW for service roads
• 296 m of main carriageway with a 4 m ROW for service roads

(ii) The layout plan of the road network is enclosed as Figure 44. A Panchayat Road
passes through the site which needs to be resurfaced and improved for movement
of trucks, trailers, reefers etc. dedicated to the food park
(a) Pavement Structure

The pavement structure for all categories of roads would be similar and is proposed with
bituminous roads and MSA of 10 million standard axles. Pavement layers have been
provided as per IRC 37, 2001, and presented in the Table below:

Table 19: Thickness of Pavement Layers

S. No Characteristics Thickness
1 Bituminous Concrete 40 mm
2 Dense Bituminous Macadam 60 mm
3 Wet Mix Macadam 250 mm
4 Granular Sub Base 200 mm

Pursuant to detailed ground investigation, the existing soil in the sub-grade may be
replaced with material with a CBR in excess of 7%

(b) Junction Details

All the junctions would be designed to ensure free movement for vehicles travelling
on the Main Roads and Internal Roads. Turning radii at junctions would be designed
to facilitate free movement of fire tenders and large sized trailers

(c) Design Parameters

Roads would be designed to MoRTH Specification Rev-4 and IRC Standard
guidelines

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(d) Service Lines
Provision would be made for water distribution mains, sewer lines,
telecommunication lines and electrical cabling by the side of carriageway all
along the road. Adequate space shall be reserved for each one of these utilities.

(e) Foot Path

Covered storm water drains slabs proposed along all the roads will serve as
pedestrian footpath. The costing for the same is included in the section detailing
the storm water drainage system. The proposed drains are planned abutting all the
proposed roads.

(f) Parking areas

The areas demarcated for parking is proposed to be paved with heavy duty paver
blocks with appropriate surface drainage facility and sanitation facilities for the
truck drivers

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Figure 44: Layout Plan of Roads

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Figure 45 Typical Cross sections of the proposed Roads

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9.1.3 Estimated Cost

Block cost estimates are prepared based on CPWD norms for quantities and prevalent
market rates. The cost of the proposed road network including the approach road is
estimated at Rs. 450.36 lacs as presented in the Table below:

Table 20: Cost Estimate for Road Network

Unit Unit Amount

S. No. Description Quantity
Rate (Rs. Lacs)
1 Main Roads (BT) – 14 Mts ROW Sqm 4571.00 2200.00 100.56
2 Other Roads Sqm 12912.00 1900.00 245.34
3 Junction Improvements Sqm 875.00 1900.00 16.63
4 Improvement of panchayat road Sqm 2880.00 1000.00 28.80
5 Parking Areas Sqm 3007.00 1250.00 37.59
Contingencies @ 5% 21.45
SUB TOTAL 450.36

9.1.3.1 Storm Water Drainage System

The entire storm water drainage system for the Park has been planned utilizing the
natural slopes wherever possible and an economically graded slope in other locations,
to design an economical and sustainable surface drainage system with integration of
rainwater harvesting. The disposal points are planned at different strategic locations as
rainwater storage well or recharging well and the overflow is planned to be drained into
the existing natural water courses through a lead off drains.

(a) Design Parameters

The following factors are taken into consideration for planning of the drainage
system
• The pattern of natural / graded slope of the site, its extent and direction
• The natural drainage system in the downstream area
• The road network system envisaged and level of the roads
• The rain fall run off from plots/units, and other covered areas into catch
basin connected to branch drain laid along the road adjacent property line.
The branch drain carries the water into lateral, which in turn carries it to
the trunk drain.
• The rainwater from open spaces and from isolated places, flow over the
ground following the natural slope and get into the nearest drain through
the vertical grating.

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• As a camber of 2.0% on the pavement is provided, the runoff from the
ROW shall flow towards the drains provided at either side of road
• For design of storm water drainage system for the park, following design
parameters are considered:
o Rainfall Intensity: 30mm / hr for a return period of 2 years
o Runoff factor: 60% runoff factor from the total area
o Minimum gradient: 1 in 300
o Minimum velocity: 0.6 m /sec

(i) Intensity of precipitation

Analysis of the observed data on intensity duration of rainfall of past

records over a period of 2 years in the area is necessary to arrive at a
fair estimate of intensity-duration for given frequencies. Maximum
hourly rainfall for a return period of 2 years is estimated as 40mm/hr
from secondary data.

(ii) Runoff Factor

The portion of rainfall, which finds its way to the drains, is dependent
on the imperviousness and the shape of the tributary area apart from
the duration of storm.
The percent imperviousness of the drainage area can be obtained from
the records of a particular district. In the absence of such data,
following serve as a guide.
Table 21: Percentage of Imperviousness

Type of Area % of imperviousness

Commercial and industrial area 70 to 90
Residential area:
High density 60 to 75
Low density 35 to 60
Parks and undeveloped areas 10 to 20

The weighted average imperviousness of drainage basin for the flow

concentrating at a point has been estimated as 0.55

(iii) Roughness coefficient

Roughness coefficient for lined masonry drains has been taken as

0.015

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(iv) Catchment Area

The catchment area for internal drainage of proposed park has been
considered as 69.19 acres

(v) Rational formula for Runoff Estimation

Rational formula has been adopted to estimate the runoff from the Park

(b) Design of Drains

The section of the drain designed is of rectangular in shape. Each node

is designed for the storm water runoff from the area draining in to that
node plus cumulative discharge from the corresponding upstream
node. Manning’s equation has been used to calculate the velocity of
water. The value of Manning’s coefficient is taken as 0.015 for
masonry / concrete with cement –sand plaster
The layout plan of Storm Water Drainage system is presented in
Figure 46.

(c) Proposed Drainage System

(i) The drains shall be located next to the carriageway along either side of
the roads for 24m, 18m and 15m.8m ROW will have one side drain
with covered footpath. Taking the advantage of road camber and
embankments, the rainfall run off from road shall flow towards the
road edge and get into the drains through the openings in the drain
sides.
(ii) The drains have been designed as a rectangular cement concrete (cc)
open drain. The RCC Cover slab has been proposed so that this can
also function as a pedestrian footpath.
(iii) For road crossings, RCC culverts are proposed as per IS Specification.
(iv) Total length of internal Storm Water Drains is about 3,950 metres for
the entire park

(d) Estimated Cost

For the purpose of estimating the block costs, CPWD norms for quantities
and prevalent market rates have been assumed. Based on the above the cost of

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the proposed storm water drainage network is estimated at Rs. 366.29 lacs as
presented in the Table below:

Table 22: Cost of Storm Water Drainage Works

S. Amount
Drains Qty Unit Rate (Rs)
No (Rs. Lacs)
1 CC drains with cover
3905 Metre 7,000 273.35
slab
2 Cross Drainage Works 8 Nos. 250,000 20.00
3 Rain Water Collection
800 KL 6000 48.00
Tanks
4 Recharging Wells 3 Nos. 250,000 7.50
5 Contingencies @ 5% 17.44
Total 366.29

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Figure 46 Storm Water Drain Layout

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9.1.3.2 Water Supply System & Fire Fighting

The proposed park comprises units for food processing upto one acre, two acre plots
apart from the core processing units and noncore units. The water requirement is
calculated based on the requirement for the processing and domestic usage.

The source of water in mainly from the proposed bore wells located within the park
premises. The calculated aggregate water requirement for the Park is about 9.40 MLD.
It is proposed to draw the water from a nearby source.

(a) Estimation of Water Demand

The demand for water in the Park would arise from production and processing
units, potable water requirement for the workers, and for landscape irrigation. In
addition, the Park would also require adequate provision of water for fire fighting.
The total water demand is estimated at 2.30 MLD.

Table 23: Calculation for Water Requirement

Mega Food Park Total Water Requirement

Domestic Water Requirement per Day
  
No of People No of Shifts Liters/Person Total
700 3 45 94,500.00
For floating
10,000.00
population  
Total 104,500.00
Industrial Usage         
Type of Plot No of plots/Area In Acre Litrs/Plot Total
Upto 1 acre plot 31 96,256.68 2,983,957.22
1-2 acres plot 16 240,641.71 3,850,267.38
More than 2 acres plot 1 433,155.08 433,155.08
Factory Shed 10 33,689.84 336,898.40
Core Infra 1,395,721.93
Total 9,000,000.00
Fire fighting 300,000.00
Grand Total 9,404,500.00

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(b) Water demand for Process

The water demand for the process units within the park is estimated at 9 MLD.
Out of which, the requirement for processing units is considered at 7.6 MLD and
for core infrastructure, it is considered to be 1.39 MLD.

(c) Fire Fighting Water Demand

The fire fighting water demand in the Park is estimated at 0.03 MLD.

(d) Aggregate Water Requirement

The total water requirement of the Park would aggregate to 9.0 MLD.

Table 24: Water Demand

Use Demand (MLD)

Domestic Demand 0.10
Industrial Demand 9.00
Fire Fighting Requirement 0.30
Total Demand 9.40
Say 9.40

(e) Water Management System

The water supply to the Park shall be through a Water Supply System, which shall
comprise of a underground storage tank, a Water Treatment Plant an Elevated
Service Reservoir (ELSR) and a Distribution System

(f) Water Supply System

The details of proposed water supply system are given below:

i. Water shall be pumped from the existing water sources located about 1
Km from the park to a Raw Water Sump and would be treated by a
treatment plant of capacity 0.80 MLD. A 1.50 ML capacity of
underground storage tank is proposed for the storage of raw, treated
and fire-fighting water. The treated water from the underground sump
is then pumped to the Elevated Service Reservoir (ELSR) located in
the park.

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ii. A distribution network has been designed for the park to supply water
for industrial and drinking water use from the ELSR to all the units and
core infrastructure facilities

iii. Water for fire fighting water shall be stored in the underground sump
in a separate compartment and will be replenished on as required basis
periodically. This will be pumped through a parallel fire hydrant
system proposed in the park.

9.1.3.3 Elements of the Water Supply System

The water supply system shall comprise the following:

(a) Pump House and Pumps

Separate pumps would be proposed near the source drawl to pump the raw
water from the source to proposed Raw Water Sump. Two pump sets (one
working and one stand by) shall be provided for pumping the raw water from
the source to the proposed Raw Water Sump at park.

(b) Underground Sump

The water from the source would be pumped to the proposed raw water
underground sump having a storage capacity of 1.50 ML. The sump shall be
compartmentalized as having 0.60 ML for raw water; 0.60 ML for clean water
and 0.30 ML for fire fighting.

(c) Water Softening Unit (WSU)

(i) The water from raw water underground sump would be pumped to the
water-softening unit for softening purpose. Raw water will be softened
by passing through resins would be collected in a separate clear water
underground sump for industrial and drinking purposes. The water-
softening unit shall have a capacity of 0.80 MLD with 20 hours of
operations.

(ii) Multi-grade sand filters would be used prior to the water softening to
remove suspended impurities. The area required for the filtration and
softening plant is estimated at approximately 15 x 20 m including the
necessary operating space.

(iii) Treated water shall be pumped back to the underground sump.

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(d) Pump House near Underground Service Reservoir

A pump house near clear water sump is proposed to accommodate the pumps
as mentioned below:
(i) For accommodating the pumps domestic requirements (to pump the
water from clear water sump to ELSR
(ii) For accommodating the pumps to pump the water from raw water
sump to softening unit.

(e) Elevated Service Reservoir

Elevated Service Reservoir (ELSR) of 0.80 ML capacity is proposed in the

park near proposed clear water sump. The reservoir shall have a staging height
of 18 m, which would ensure a minimum of 7 m head at the farthest water
distribution node.

The water from the treated and raw water sump will be pumped to Elevated
Service Reservoir. The water from the ELSR will be distributed throughout
the park through distribution network to meet the requirements of domestic as
well as industrial demands.

(f) Design Parameters

Choice of Pipe Material

For the choice of pipe material, three options i.e. DI, PSC and HDPE pipes
were considered. Weighing the pros and cons of the above alternatives and
after a thorough evaluation of the same, the HDPE pipes have been selected
since these pipes have better mechanical properties, better load and impact
qualities, higher flexibility, speedy laying and easier handling and
transportation as compared to other pipes. HDPE pipes are also cheaper as
compared to CI/PSC/HDPE pipes. Hence, the distribution network would be
proposed with HDPE Pipes of PN 6.0/ PN 8.0, PE 80 Grade / PE 100 Grade.
Distribution network will be designed for sixteen hours continuous supply.

The parameters considered for design of distribution network is presented in

Table below:
Table 25: Design Parameters for Distribution System

Parameters Design Variable

Peak Factor 3.0 x Average flow
Hazen and William’s Co-efficient HDPE pipe 140
(PN 6.0/PN 8.0, PE 80/PE 100)
Minimum size in distribution system 75 mm

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(g) Distribution Lines

Distribution pipelines will be located within the Right of Ways of roads

between the drain and the RoW edge. Total length of distribution network in
the Park is estimated at 4955 meters and the layout of the Water Supply
System and Treated Water system are presented in Figure 47. Total length of
line proposed from the source drawl to the Park will be about 1000 meters.

9.1.3.4 Estimated Cost

For the purpose of estimating the block costs, CPWD norms for quantities and
prevalent market rates have been assumed. Based on the above the cost of
Water Supply System is estimated at Rs. 539.45 lacs as presented in the Table
below:

Table 26: Estimated Cost of Water Supply System

Amount
S. No Item Qty. Unit Rate (Rs)
(Rs. Lacs)
Raw Water Sump with
1 1500 KL 12,000 180.00
Pumping Machines
2 Elevated Storage Reservoir 800 KL 17,000 136.00
3 Water Treatment System 800 KL 7,500 60.00
4 Pump house with Pumps 2 Nos 10,00,000 20.00
Distribution Network and
5 service connections 4955 Rmt 1,800 89.19
(HDPE)
6 Source Drawl 1000 Rmt 3,000 30.00
7 Contingencies @ 5% 24.26
Total 539.45

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Figure 47 Water Distribution Network

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9.2 Effluent and Sewage Conveyance & Treatment System

An underground sewerage network has been designed to collect sewage from each plot
and convey it to a sewage treatment plant. At the STP, the sewage would be treated to
acceptable standards and the treated sewage could be used for irrigation purpose within
the park for green belt development. Layout of the proposed sewerage network is
presented in the DPR.

9.2.1 Sewage Flows, Pipes and Manholes

(a) Sewage Flow

80% of the design water demand is assumed as the sewage flow. The domestic
water demand of the park has been considered as 0.10 MLD. The sewage flow
has therefore been assumed to be 0.08 MLD. The network has been designed
with a peaking factor of 3

(b) Sewer Pipes

(i) Considering the type and characteristics of flow, the strength and
durability of the pipe material, availability of pipe sizes and jointing
methods, For collection of sewage and effluent from individual plots to
Common Sewage and effluent Treatment Plant HDPE pipes shall be
used.

(ii) To enable smooth flow it is proposed to have a minimum pipe size of

150 mm to ensure easy cleaning flow. Minimum clear cover of 1.00
metre below the formation level of the road/access shall be adopted for
pipes.

(iii) Sewers shall be designed to maintain flow velocities of more than 0.6
m/sec to avoid silt deposition and also to ensure self-cleansing

(c) Manholes

Manhole providing access to sewers for inspection and cleaning shall be

provided at 30 m intervals as well as at points of change in direction, change
in pipe sizes, changes in gradient and at junction points. The manholes shall
be of brick masonry. The shape and size of the manholes for different depths
are presented in the following Table:

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Table 27: Details of Inspection Chamber/Manhole

S. No Depth Range (m) Shape Int. Dim. (mm)

1 d <= 0.90 Rectangular 900 x 800
2 0.90 < d <= 2.50 Rectangular 1,200 x 900
3 2.50 < d <= 9.00 Circular 1,500 dia

9.2.2 Sewage Treatment System

A sewage treatment plant of 60 KLD capacity using attached growth activated sludge
process has been proposed for the park. The STP shall have a screen and grit removal
mechanism followed by an equalization tank, aeration tanks with extended aeration and
sludge recycling facility, secondary clarifier with sludge removal mechanism, sand and
activated carbon filters and a treated sewage tank. Bleaching powder doses will be used
for chlorination before disposal of the treated sewage. It is proposed that treated
sewage will be used to the extent possible for landscaping and flushing of toilets. The
expected characteristics of wastewater are presented in the Table below:

Table 28: Expected Characteristics of Sewage

S. No Parameters Characteristics
1 PH 7.02
2 Color (Pt – Co Unit) 500
3 Oil & Grease 5.35 mg/lt.
4 Total Suspended Solids 179.00 mg/lt.
5 TDS 3200 mg/ lt.
6 BOD 300 mg/ lt.
7 COD 1875 mg/ lt.

The schematic diagram of the sewage treatment system is presented in the figure
below.
EQUALISATION
UASB PLANT
GAS
EFFLUENTEFFLUENT
LAUNDERLAUNDER COLLECTORS
SETTLER
TRICKLING
FILTER
SECONDARY
CLARIFICATION  
PUMPING   BAR SCREEN
PUMPING

UASB
PLATES
TO TRICKLING
FILTERS
SEWAGE

COLLECTION WELL
CHAMBER
TANK
TO SLUDGE DRYING BEDS
 
     
   
 
FILTRATE
 

  ON LINE
CHLORINATION
PSF
SLUDGE
DRYING BEDS  
FFP TREATED WATER
SP SLUDGE PUMP
FFP FILTER FEED PUMP
  PSF PRESSURE SAND FILTER  GARDENS

SUMP
FFP

    

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Figure 48 Sewage Network Layout Plan

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a. Network Layout

The waste water so generated will be conveyed through pipes and discharged
into the sewerage treatment plant. The sewerage collection network would be
of 4,955 m in length. The treated water from the STP will be distributed to the
landscaping purpose. The Irrigation conveyance system network would be of
1,239 m in length.

9.2.3 Effluent Collection System

b. Effluent Collection and Treatment

The park is expected to generate about 9 MLD of effluent from the processing
units. The treatment process proposed is a biological treatment.

Effluent shall be processed using extended aeration technology with aeration

tanks and secondary clarifiers with sludge handling and processing units.

c. Network Layout
The Park shall have processing units that are expected to discharge wastewater
of 9 MLD when fully operational. The waste water so generated will be
conveyed through pipes and discharged into the effluent treatment plant. The
effluent collection network would be of 4,955 m in length and would be
separated from the domestic sewerage collection system.

9.2.4 Cost Estimates

The cost of sewage collection system is estimated at Rs. 2683.31 lakh as presented in
the Table below:

Table 29: Estimated Cost of Sewage Collection System

Rate Amount
S.
Item Qty. Unit
No (Rs.) (Rs Lacs)

1 Sewerage Collection System 4955 Mts 1,800.00 89.19

2 Sewage Treatment Plant 84 KLD 85,000.00 71.4

3 Irrigation Water Conveyance 1239 Rmt 1,500.00 18.59

4 Effluent Collection System 4955 Mts 1,800.00 89.19

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5 Effluent Treatment Plant 9 MLD 25,000,000 2250

Recycled Effluent
6 2478 Rmt 1,500.00 37.17
Conveyance

7 Contingency @ 5% 127.78

Total 2683.3
 

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Figure 49 Industrial Effluent Collection System Layout Plan

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9.2.5 Electrical Transmission and Distribution

a) Power Demand

The aggregate power demand of the Park is estimated to be approximately in

the order of 6.00 MW for the processing, core and noncore activities including
common infrastructure. For the purpose of estimation the internal distribution
of the complete park is considered, including the cost of distribution
transformers. The demand for each 1 acre plot is considered at 63 KW, 1-2
acre plot as 135 KW, and 360 KW for 2 acre plot. Power for the common
infrastructure is budgeted as 650 KW and for core infrastructure it is 1000
KW.

It is presumed that HT supply at 110 KV shall be made available by the SEB

through conductors in the 110/ 33 or 22KV substation proposed to be set up in
the park. Power shall be stepped down to 11KV by ONAN/ONAF
transformers with OLTC and supplied to the 11/433V substations within the
industrial units through overhead ACSR conductor. 11KV/433V substations
with ONAN cooled transformers. Off load tap changers for smaller loads and
dry type transformers with off load tap changer for larger loads are planned at
different locations to feed power supply to respective units restricting voltage
drop within acceptable limits

b) Transmission of Power

The power demand of each plot and the respective facilities has been
estimated based on the machinery and lighting requirement and all the plots
and facilities will have independent connections with metering.

c) Primary Distribution

The overhead HT cable from the 33 KV substations is connected to the

distribution system in the park consisting of a 1250 KVA (11KV/433V)
distribution transformers through two pole structures/VCB. Electrical
distribution within the park is proposed through overhead lines to the
individual plots. From the distribution network, connections are given to the
individual plots and facilities.

d) Metering and Service Connections

Each connection shall be provided with independent metering panel and a HT

switch.

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e) Road/Street Lighting

Road lighting is planned as double and single armed single pole structure with
metal halide lamps at a spacing of 30 m along the road.

9.2.6 Proposed Power Transmission & Distribution

a) Proposed System

From the point of power connection point a radial 11 KV network will be

formed inside the park and at convenient load centre locations substations with
11KV/433 V transformers installed and power stepped down to the working
voltage of 433V, 3 phase and neutral system to each plot or facilities of the
park.
b) Sub-Stations & Sub-transmission

All these 11kV/433 V sub-stations which shall be located within the Park in
load centers shall be equipped with a transformer of rating of 1.25 MVA,
where the voltage would be stepped down from 11kV to 433V for further
distribution to various plots and utility centers.
11 kV lines of double circuit shall be strung on the rail RSJ/PCC poles. This
circuit shall start from the main substation and pass through the park and then
shall get terminated in the same substation. Power supply thus will be
available in dual mode.
c) Distribution Lines

11V lines shall be strung on 11 m long PCC/RSJ poles. V-shape cross arms
shall be used at tangent locations with Pin Insulators for supporting conductors
to minimize transient tripping. At angle locations more that 10 deg straight X-
arms with Disc Insulators would be installed. If required, conductor jumpers
shall be supported on pin Insulators for maintaining adequate clearances.
Feed to the 11 kV lines shall be through 11 kV conductors controlled by
switchgears.
d) Transformers

Transformers of rating 1250 KVA capacities are proposed to be installed in

plinth mounted. The 11kV sides of these transformers shall be controlled by
11 KV Vacuum breakers. The LT side of the transformers shall have ACBs /
Molded case circuit breakers. Outgoing service lines shall be controlled by
MCCBs. Pole/plinth mounted sub-stations would have adequate fencing with
inside access through a lockable gate.

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e) Power supply distribution to each shed from the LT board located in the
substation

The power at 433 V from the transformer is fed into a main power distribution
board of industrial units or cluster or units, as the case may be, with power
monitoring system equipments. Power factor of the main electrical system and
that of each shed will be maintained to 0.97/0.98 by means of Automatic
power factor capacitor banks located in each substation and in each shed.

f) Earthing system of the electrical system

The earthing system considered for the electrical system of the park shall be
conforming to IS-3043 and rules as well as regulations of the statutory
authorities.
g) General

The electrical installations inside the park shall be conforming to the rules and
regulations of the statutory authorities.

h) Street Lighting

Design Criteria

Roads in the park shall generally be used for:

ƒ Movement of goods/ machinery/ finished products through heavy vehicles

ƒ Movement of persons through light vehicles including cyclist/pedestrian.

Other roads around shopping area, and residential area/ parking area shall be
considered for aesthetic and pleasing lighting systems

Basic requirement of road lighting shall be as follows:

ƒ Adequate level of illuminations as suggested by the regulations mentioned the

illumination engineers handbook for heavy vehicles/light vehicles/ cyclist

ƒ Uniform illumination level over the carriage way with minimum glare

ƒ Safety of movement

ƒ Minimum disturbance during fog condition/dust conditions

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ƒ Use of high efficiency lighting fixtures with high lumen output and low power
consumption

ƒ Aesthetic appearance

Power Supply & Control System for the road /street lighting system

Power supply to the road lighting system shall be fed through underground PVC
insulated, armored, aluminum conductor cables. Distribution of power shall be
through 415V, 3 Phase 4 wire system and controlled through a self-powered
synchronous timer. Power supply for road lighting system shall be made available
from the proposed LT substations located at various places in the Park.
The proposed layout of street lighting has been depicted in Figure 50.

9.2.7 Estimated Cost

Based on the power demand calculations, the cost estimates for electrical
transmission and distribution network and street lighting is Rs. 584.12 lacs as
presented in the Table below:
Table 30: Estimated Cost of Electrical Distribution & Street Lighting

Amount
S No. Item Unit Quantity Rate
(Rs lacs)
1. Providing electrical substation
and distribution with the MW 6.00 8,500,000.00 510.00
transformer
2. Street light Double arm with
Nos. 31.00 50,000.00 15.50
cable & panel
3. Street light Single arm with
Nos. 77.00 30.80
cable & panel 40,000.00
4. Contingency @ 5% 27.82
Total 584.12

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Figure 50 Layout of Power Distribution System

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9.2.8 Signage & Landscaping

Purpose

An attractive landscape of international standards would not only improve the image
of the Park but would also provide an aesthetic environment to the work force

Scope

The proposed landscaping would integrate hard and soft landscapes. The proposed
hard landscapes will include Main entrance gateway, roadscapes, street furniture,
signage and building fronts, etc whereas the soft landscapes would consist of open
spaces, rotundas, areas within the right of way, etc.

Estimated Cost

The cost of the aforesaid landscaping is estimated at Rs. 50 lacs

9.2.9 Telecommunication Infrastructure

Success of modern day business depends upon communication infrastructure.

Internet connectivity through broadband connection, close circuit video network are
some of the likely requirements of the proposed park. Considering these, a lump
sum amount of Rs. 25 lacs has been provided towards data cabling, etc.

9.2.10 Solid Waste Management

Collections pits shall be made at all appropriate locations in the mega food park.
The cost of the aforesaid Solid Waste Management is estimated at Rs. 25 lacs

Table 31: Estimated Cost of Sewage Collection System

Rate Amount
S. No Item Qty. Unit
(Rs.) (Rs Lacs)
1 Solid Waste Management LS 25.00
Total 25.00

9.2.11 Aggregate Cost of Common Infrastructure

The cost of various components of the Common Infrastructure is estimated at Rs.

3424.16 lacs as presented in the Table below:

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Table 32: Block Cost Estimates for Common Infrastructure

Amount
S. No Item
(Rs. Lacs)
1 Site Development & Compound Wall 572.25
2 Roads 450.36
3 Storm Water Drainage System 366.29
4 Water Supply Distribution System 539.45
5 Sewage, Effluent Conveyance and Treatment System 2683.31
6 Electrical Distribution System & Street Lighting 584.12
7 Signage & Landscaping 50.00
8 Telecommunications 25.00
9 Solid Waste Management 25.00
Total 5295.78

9.3 Core, Non-core Processing facilities & SDF

9.3.1 Core Processing Facilities

The core process facilities at the CPC include the following

Description Capacity
Warehouse 1000 MT
Cold Store 3000 MT
Deep Freeze Unit 3000 MT
Deboning and Canning Unit 50 MT/day
Quality Control and Food Testing Lab

i. Dry Ware & Finished Warehouse

The total capacity of the warehouse is 1000 MT. The total built up area
required is 800 sqm. The proposed building is PEB structure.

Based on the quotes received from suppliers and other prevalent market
rates, the cost of Raw Material and Finished Warehouse including PEB and
PUF paneling is around Rs. 14,000 per sqm.

ii. Cold Storage

The total capacity of the Multi product cold storage is 3000MT. The
total BUA required is 2142 sqm. The cost of works for Multi Product
Cold Storage as per the prevalent market rates are proposed as Rs.
14,000 per sqm.

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iii. Deep Freezer

The total capacity of the Multi Deep Freezer is 3000MT. The total
BUA required is 3000 sqm. The cost of works for Deep Freezer as per
the prevalent market rates are proposed as Rs. 16,000 per sqm.

iv. Deboning & Canning Unit

The total capacity of the Deboning and Canning Unit is 50 MT/day.
The total BUA required is 1000 sqm. The cost of works for Deboning
and Canning Unit as per the prevalent market rates are proposed as Rs.
14,000 per sqm.

v. Quality Control & Food Testing Lab

The total BUA required is 300 sqm. The cost of works for Quality
Control & Food Testing Lab as per the prevalent market rates are
proposed as Rs. 14,000 per sqm.

The Total Core Processing Facilities at the CPC is estimated at Rs. 1073.88 Lakh.

Table 33 Core processing facilities

Sr. Amount (Lacs

Description Unit Quantity Unit Rate
No. Rs)
1 Ware house Sq Mt 800.00 14,000 112.00
2 Cold Storage Sq Mt 2142.00 14,000 299.88
3 Deep Freeze Unit Sq Mt 3000.00 16,000 480.00
4 Deboning and Canning unit Sq Mt 1,000.00 14,000 140.00
5 Quality control & Food testing lab Sq Mt 300.00 14,000 42.00
Total 7,242.00 1073.88

9.4 Non Core Processing Facilities

9.4.1 Planning Concept

The concept envisages presenting an impressive façade from the main entry and shall
be a stand out building in the whole park. There shall be a separate entry and exit into
the park for non-core process facilities only.

9.4.2 Design Criteria

a. The components of non-core processing facilities are derived from the standards laid
down in the Time Saver’s and National Building Code for such facilities. The spatial
requirements have been derived based on the population to be served by each of the
facility

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b. The design philosophy is based on the aesthetic and equitable distribution of the
programmatic components of the buildings around courtyards and open spaces. The
central square would be left open to sky as a courtyard – to ensure adequate light and
ventilation within the building. Green spaces within the plot areas have been
emphasized and maximized. The proposed building is designed as a G+3 structure.

9.4.3 Spatial Requirements & Areas – Administrative Components

Non-core processing facilities as proposed in the mega food park form the hub
of all the activities.

Administration Block

The administrative block having an area of 1000 sqm shall be provided to

house the office of the SPV.

Workers Amenities

Workers Amenities would be provided with an area of 1000 Sq mt.

Training and Skill Development Center

The park would have a training, class rooms, demo hall and auditorium where
there would be facilities for product development and training of new
workforce. The facility would cover an area of 800 sqm

Miscellaneous

The other facilities which are proposed are Cantee, Crecje post office, agri
shops, Bank and ATM, Communication rooms etc. Provision for office space
for other enterprises is also proposed.

9.5 Area Analysis

The facilities in the Park have been designed keeping in mind the activities and capacities of
the proposed units being set up in the Park. The details of the proposed common facilities are
presented in the following Table.

Table 34: Details of Built up Areas for Non Core Processing Facilities

Built-up Area
S. No Description
(Sqm)
A Administrative Building

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1 Reception Area 100
2 Bank & ATM 200
3 Dispensary 150
7 Super store 200
8 Agri Shops (4 shops) 100
9 Common Toilets 50
11 Office SPV 200
Total 1,000
B Canteen 500
C Creche 500
D Workers Amenities 1000
E Training Centre 800
Grand Total 3,800

9.5.1 Estimated Cost for Non Core Processing Facilities

The cost of the buildings of common facilities is estimated at Rs. 602.00 as presented in the
Table below:

Table 35: Estimated Cost for Non Core Processing Facilities

Built up
Amount
Sr. No. Description area Rate (Rs.)
(Rs. Lacs)
( Sq Mt.)
1 Administrative Block 3800 21000 210.00
2. Canteen 500 14000 70.00
3. Crèche 500 14000 70.00
4. Workers amenities 1000 14000 140.00
5. Training and Skill development 800 14000 112.00
Total Cost 602.00

9.5.2 Standard Design Factories (SDF)

Factory buildings for MSMEs have been envisaged to house the Medium, Small &
Micro Enterprises (MSME) in the Food Processing Center. The infrastructure shall
be provided to the MSMEs where the entrepreneurs will have to make the
investments related to plant and machinery. The total land area allotted for MSMEs
is 2500 sqm. It is proposed to provide facilities for 10 MSEs having an area of 250
sqm each in a single building. With F.A.R of 0.5, the building consists of a multiple
floor. The building is of RCC roof in structure with minimum columns and long
spans. The main function is based on the concept of plug and play facility.

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For the purpose of estimating the block costs, CPWD norms for quantities and
prevalent market rates have been assumed. Based on the above the cost of SDF is
estimated at Rs. 350.00 lacs as presented in the Table below:

Table 36: Block Cost Estimates for Standard Design Factories

Amount
S. No Item Built up Area Unit Rate (Rs.)
(Rs Lacs)
1 Standard Design Factories 2500 Sqm 14,000.00 350.00
Total 350.00

9.5.2.1 Primary Processing Centre

Five Primary Processing Centers (PPCs) have been envisaged to be created and these
will be an integral part in the concept of Mega Food Parks for sourcing the raw and
primarily processed produce respectively to the Central Processing Park.
The PPCs are located at
• Thoppumpady
• Vypeen
• Munambam
• Aroor
• Neendakura

The Primary Processing Centers are envisaged to be spread over an area ranging 2-3
acres and will have the following facilities
o Pre-processing facility for cleaning, sorting and grading
o Flake Ice Plants
o Quality Testing Lab
o Cold Storage
o Office
The total cost of setting up PPCs is estimated at Rs. 456.90 lacs and the table is presented
below:

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Table 37: Estimated Cost for Primary Processing Centers

Sr. Primary Processing Unit Amount

Capacity Unit Quantity
No. Center Rate (Lacs Rs)
PPC at Thoppumpady
Pre-processing for cleaning,
1 LS
Sorting, Grading Sqm 20 14,000 2.80
10
2 Flake Ice Plants
MT/day Sqm 900 13,000 117.00
3 Quality Testing Lab Sqm 100 14,000 14.00
4 Cold Storage 100MT Sqm 100 14,000 14.00
Total at Thoppumpady (1) 1120 148.00
PPC at Vypeen
Pre-processing for cleaning,
LS
1 Sorting, Grading Sqm 20 14,000 2.80
10
Flake Ice Plants
2 MT/day Sqm 900 13,000 117.00
3 Quality Testing Lab Sqm 100 14,000 14.00
4 Cold Storage 100MT Sqm 100 14,000 14.00
Total at Vypeen (2) 1120 148.00
PPC at Munambam
Pre-processing for cleaning,
LS
1 Sorting, Grading Sqm 20 14,000 2.80
10
Flake Ice Plants
2 MT/day Sqm 900 12,000 108.00
3 Quality Testing Lab Sqm 100 14,000 14.00
Cold Storage 100MT
4 Sqm 100 14,000 14.00
Total at Munambam (3) 1120 139.00
Total B1 for 3 PPCs (1+2+3) 3360.00 434.40
Non-core Infrastructure
1 Office- Thoppumpady PPC Sqm 50 15,000 7.50
2 Office- Vypeen PPC Sqm 50 15,000 7.50
3 Office- Munambam PPC Sqm 50 15,000 7.50
Total B2 {all PPCs} 150.00 22.50
Total ( B1 + B2 ) 3510.00 456.90
 

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10 Project Cost
The total estimated cost for the project is Rs12915.86 lakhs. The component wise cost has been
estimated on the basis of quotations received for plant and machinery from various manufacturers and
on the basis of industry and engineering estimates for civil work. The Project cost details are provided
in table below.

Table 38: Project Cost Details

S No. Description Amount (Rs Lakhs) Share (%)

1 Land 770.9 5.97%
2 Land & Infrastructure Development 5569 43.12%
3 Buildings 2482.78 19.22%
4 Equipment 2854.92 22.10%
5 Utilities & other fixed assets 293 2.27%

6 Preliminary and Pre-Operative Expenses 356.3 2.76%

7 Contingencies 559.99 4.34%

8 Margin Money for Working Capital 28.97 0.22%
Total 12915.86 100%

10.1 Land Development and Basic Infrastructure

The total land allotted for the food park project is 68.19 acres. The total cost of land for the 68.19
acres (earmarked for MFP) is estimated at Rs. 673 lakhs. The total land area of 1.5 acres has been
considered for all 3 PPCs based on assumption of 0.5 acre for each PPC at Thoppumpady, Vypeen,
and Munambam. The land at PPC will be taken on lease at the rate of Rs. 107.60 per square meter.
The lease amount has been calculated for total 15 years. It is Rs. 97.90 lakhs. Therefore, the total
value of land for the MFP project, including PPCs is estimated at Rs. 770.90 lakhs. The construction
of basic enabling infrastructure/utilities such as boundary wall, gate, security cabin at gates, green
area development, roads, water treatment & supply, storm water drains, sewage collection and
treatment, electrical supply and distribution system, parking etc. is Rs. 5,569.00lakhs.

10.1.1 Civil Construction – Buildings

The civil construction involves construction of core processing infrastructure components, non-core
facilities and Standard Design Factory sheds for MSMEs. The major core processing facilities are Dry
Warehouses, Deep Freezer, Deboning and Canning Unit, Cold Storge, Quality Control and Food
Testing & Product Development Lab, Training and Development Center etc. Non-core facilities
include mainly admin block, worker’s amenities, guest house etc. The estimated cost of civil work for
core processing facilities is Rs. 1508.28 lakhs. The estimated cost of buildings for non-core
infrastructure is Rs 624.50.lakhs (Rs 602 lakhs at CPC and Rs 22.50 lakhs at PPCs). The cost of
Standard Design Factory Sheds (SDFs) for MSMEs is estimated at Rs 350 lakhs. The location and
category wise summary of civil work is given in the below table.

Table 39 Total Cost of Civil Construction

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Built Up Civil Cost

Categories
(In Sq.m) (Rs. In Lacs)

A. Core Processing Facilities

at CPC 7,242.00 1,073.88
at PPCs 3,360.00 434.40
Sub Total (A) 10,602.00 1,508.28
B. Standard Design Factories 2,500.00 350.00
C. Non-Core Processing Facilities
at CPC 3,800.00 602.00
at PPCs 150.00 22.50
Sub Total (C) 3,950.00 624.50
Grand Total Building Costs (A+B+C) 17,052.00 2,482.78

The total cost of civil work for buildings is estimated to be about Rs 2,482.78 lakhs. The construction
rates are as per industry standards, the details of facilities, categories and location wise built-up areas
and construction rates are provided in the table below:

Table 40: Cost of Civil for CPC and PPC

Built Up Civil Cost

Sr. Rate
Components Capacity (In (Rs. In
No. (Rs./Sq.m)
Sq.m) Lacs)
A. Central Processing Centre (CPC)
1. Core Processing Facilities
1 Warehouse 1000 MT 800 14,000 112.00
2 Cold Storage 3000 MT 2142 14,000 299.88
3 Deep Freeze Unit 3000 MT 3000 16,000 480.00
Deboning and Canning
1000 14,000
4 Unit 50 tons/day 140.00
Quality Control & Food
300 14,000
5 Testing Lab 42.00
Total (1) 7,242 1073.88
2. Standard Design Factory Sheds
1 SDF For SME (2) 2500 14,000 350.00
3. Non-core Infrastructure Facilities
Administrative
210.00
1 Buildings 1000 21000
2 Canteen 500 14000 70.00
3 Creche 500 14000 70.00
4 Workers amenities 1000 14000 140.00
Training and Skill
5 800 14,000 112.00
Development
Total (3) 3800.00 602.00
Sub Total (A = 1+2+3) 13,542 2025.88
B. Primary Processing Centres (PPCs)

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Built Up Civil Cost
Sr. Rate
Component Capacity (In (Rs. In
No. (Rs./Sq.m)
Sq.m) Lacs)
B.1: Core Processing Infrastructure
1. PPC-Thoppumpady
Pre-Processing for
1 cleaning, Sorting, LS 20 14000 2.80
Grading
2 Flake Ice Plants 10 MT/day 900 13000 117.00
3 Quality Testing lab 100 14000 14.00
4 Cold Storage 100 MT 100 14000 14.00
Total 1,120 148
2. PPC-Vypeen
Pre-Processing for
1 cleaning, Sorting, LS 20 14000 2.80
Grading
2 Flake Ice Plants 10 MT/day 900 13000 117.00
3 Quality Testing lab 100 14000 14.00
4 Cold Storage 100 MT 100 14000 14.00
Total 1,120 148
3. PPC-Munambam
Pre-Processing for
1 cleaning, Sorting, LS 20 14000 2.80
Grading
2 Flake Ice Plants 10 MT/day 900 12000 108.00
3 Quality Testing lab 100 14000 14.00
4 Cold Storage 100 MT 100 14000 14.00
Total 1,120 139
Total 3,360 434
B.2: Non-core Infrastructure
8. At each PPC
1 Office-Thoppumpady Sqm 50 15000 7.50
2 Office-Vypeem Sqm 50 15000 7.50
3 Office-Munambam Sqm 50 15000 7.50

Total B.2 {all PPCs} 150 22.50

Sub total (B =
456.90
B.1+B.2) 3510
Grand Total (A+B) 17052 2482.78

10.1.2 Plant and Machinery

The total estimated costs of plant and machinery is Rs. 2854.92 lakhs. Major components include
refrigeration systems for Deep Freezer, Multi Chamber Cold Storage, Deboning & Canning Unit,
Refeer vehicles, Flake Ice Plants, Pre-processing, sorting & grading line and Quality Control Food
Testing and R&D Lab etc. The cost of plant & machinery is based on the quotation received from

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reputed suppliers. The quotations indicates prices including taxes. The location and facility wise
details of the plant and machinery are provided in the table below:

Table 41: Cost of Plant & Machinery at CPC & PPC

Base Taxes @
Amount
Sr. Cost 15.30%
Components Capacity (Rs. In
No. (Rs. In (Rs. In
Lacs)
Lacs) Lacs)
A. Central Processing Centre (CPC)
1. Core Processing Facilities
1 Warehouse 1000 MT 0 0.00 0.0
2 Cold Storage 3000 MT 260.19 39.81 300.0
3 Deep Freeze Unit 3000 MT 563.74 86.25 649.9
4 Deboning and Canning Unit 50 tons/day 176.00 26.93 202.9
5 Training and Skill Development Center LS 17.35 2.65 20.0
6 Quality Control & Food Testing Lab LS 325.00 49.73 374.7
Total (1) 1547.6
B. Primary Processing Centres (PPCs)
Base Taxes @
Amount
Sr. Cost 15%
Component Capacity (Rs. In
No. (Rs. In (Rs. In
Lacs)
Lacs) Lacs)
B: Core Processing Infrastructure
1. PPC-Thoppumpady
Pre Processing for cleaning, sorting,
1 LS 64.2 18.62 82.82
grading
2 Flake Ice Plants 10 MT/day 150 22.95 172.95
3 Quality Testing lab LS 14.455 2.21 16.67
2 Nos @ 10 MT
Refeer Vehicles 69.38 10.62 80.00
4 each
5 Cold Storage 100 MT 26.0191 3.98 30.00
Total 324 382
2. PPC-Vypeen
Pre Processing for cleaning, sorting,
1 LS 64.2 18.62 82.82
grading
2 Flake Ice Plants 10 MT/day 150 22.95 172.95
3 Quality Testing lab LS 14.455 2.21 16.67
2 Nos @ 10 MT
Refeer Vehicles 69.38 10.62 80.00
4 each
5 Cold Storage 100 MT 26.0191 3.98 30.00
Total 324 382
3. PPC-Munambam
Pre Processing for cleaning, sorting,
1 LS 64.2 18.62 82.82
grading
2 Flake Ice Plants 10 MT/day 150 22.95 172.95
3 Quality Testing lab LS 14.455 2.21 16.67

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2 Nos @ 10 MT
Refeer Vehicles 69.38 10.62 80.00
4 each
5 Cold Storage 100 MT 26.0191 3.98 30.00
Total 324 382
4. PPC- Aroor
2 Nos @ 10 MT
Refeer Vehicles 69.38 10.62 80.00
5 each
Total 69 80

5. PPC-Neendakara
2 Nos @ 10 MT
69.38 10.62 80.00
5 Refeer Vehicles each
Total 69 80

Total (B = 1+2+3+4+5) 1110.92 0.00 1307.2

Grand Total (A+B) 1110.92 0.00 2854.9
Note: PPC at Aroor and Neendakara is already built and proposed to be taken on lease. The Plant & Machinery is not required except
Reefer vehicles at these locations.

10.1.3 Miscellaneous Fixed Assets

The cost of misc fixed assets for the project is estimated at Rs 293.00 lakh. The major components
included under MFA are MIS and IT system, office equipments and furniture etc. The component
wise cost details are given as below:
Table 42: Miscellaneous Fixed Assets

Amount
Sr.
Components Capacity (Rs. In
No.
Lacs)
A. Central Processing Centre (CPC)
Fork -lifts, crates, pallet movers, IT System, LS 193
1 Software and office equipments
2 Furniture fixtures etc. LS 50
Total (A) 243.00
B. Primary Processing Centres (PPCs)
For all PPCs
1 Computers and office equipments LS 30.0
2 Furniture fixtures etc. LS 20
Total (B) 50.0
Grand Total (A+B) 293

Particulars Number of Units Rate/Unit Total( Rs. Lakh)

Plastic Pallets 1200 4,200.00 50.40
Electric Forklift 6 1,685,000.00 101.10
Crates 4000 295.00 11.80
IT System, Software, Office equipments LS 30.00
Total 193.00
 

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Calculation for the above:

1. Load factor for 1 plastic pallet: 12 crates x 200 Kg = 2.4 tons.

2. We have already assumed 50% usage for Deep Freezer and Cold Storage together; hence total
usage is roughly around 3000 MTs. Thus. 3000/2.4 = 1250 pallets (say 1200).
3. Total units envisaged in the park are minimum 15 units. The per day processing capacity
would be 50 tons per day( in line with deboning & canning unit). Therefore, the total tonnage
= 15 x 50 MT = 750 Tons. The capacity of per crate in 200 kg, hence total crates required will
be 3750 crate (say 4000 crate).

10.1.4 Pre‐operative Expenses

The provision towards preliminary and pre-operative expenses includes expenditure towards
preliminary expenses such as engineering design, construction supervision, and interest during
construction period, business development expenses, site insurance, security, salary & wages during
construction period etc. It is envisaged that the project will be completed over a period of two years
and the interest during construction period of 2 years is capitalized in the project cost. The total
estimated pre-operative expense is Rs356.30 lakhs, details are given as below:

Table 43: Pre-operative Expenses

Pre-operative Expenses
Amount (Lakh
Particulars Unit Rs) Basis
A. Consultancy Fee during Construction
PMC LS 94.10
Web Site Development LS 5.00
Marketing Consultant LS 5.00
Sub Total (A) 104.10
B. Administrative
Security Expenses LS 10.00
Salaries & Wages LS 36.00 1.5 lakh p. m
Traveling LS 12.00 0.5 lakh p.m.
Misc Expenses LS 12.00 0.5 lakh p.m.
Power & Fuel Cost LS 12.00 0.5 lakh p.m.
Rent, Taxes Etc. LS 12.00 0.5 lakh p.m.
Insurance etc. 0.50% 15.74 of equipments
Bank Processing & Upfront fees 0.50% 5.00 of loan amount
Business Development Expenses LS 20.00 Lakh Rs
Trial Runs Expenses LS 5.00 Lakh Rs
Sub Total (B) 139.74
C. Interest During Construction
Quarter-1 2.73
Quarter-2 5.47
Quarter-3 8.20
Quarter-4 10.94
Quarter-5 15.08

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Quarter-6 19.22
Quarter-7 23.36
Quarter-8 27.50
Sub Total (C) 112.50
Grand Total (A+B+C) 356.34

10.1.5 Margin money for working capital

The project will generate revenue by charging rental from the users of the facilities. Rentals will be
charged from users on monthly basis. Once the project commences operation, it would incur major
operational expenses on monthly basis towards electricity bills, manpower expenses, and other
administrative expenses. Therefore, the project would require cash flow on monthly basis to meet the
requirement of working capital. The total estimated working capital for first year of operation would
be Rs. 115.86 lakhs, 25 % of the estimated working capital required has been assumed as the margin
money, which comes to around Rs. 28.97 lakh

Table 44: Margin Money Calculation

Credit Requirement- 1st

Particulars
Cycle Year (Rs lakh)
Other
30 115.86
expenses
Margin
25% 28.97
Money

10.2 Means of Finance

The cost of the project is proposed to be financed through a mix of equity, Grant from MoFPI under
the Mega Food Parks Scheme of 12th Five Year Plan and term loan from Bank. The promoter would
contribute about 53.65 % of the cost of project. The grant from MoFPI would be 50% of eligible
project cost excluding cost of land, margin money for working capital and pre-operative expenses or
Rs 5000.00 Lakh, whichever is lower. However; interest during construction (IDC) and PMC charges
would be considered while calculating the eligible project cost. In this case the estimated grant
amount is Rs 5000.00 Lakh. The remaining funds of Rs. 1000.00 lakh would be arranged as term
Loan from Bank.

Table 45: Means of Finance

Proportion
Means of Finance Amount (Lakhs Rs)
(%)
Promoters Contribution 53.55% 6,915.90
Grant from MoFPI 38.71% 5,000.00
Debt 7.74% 1,000.00
Total 100.00% 12915.90
Note: It may be noted that the rate of interest has been assumed as 11 % as per HDFC Bank submission

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11 Project Financial Analysis
11.1 Business plan
The business plan of KSIDC Sea Food Park has been prepared taking into account the proposed
business model in line with the Mega Food Parks Scheme:

• Agency would provide developed land plots and SDF sheds to various units in the park on
long term lease
• The project will provide warehousing facility, cold storage and deep freezer facilities. The
project will generate revenue by charging rental from the users.
• Deboning and Canning facility will be utilized by the processing units in the park
• Agency will provide facilities such sorting/grading/packing lines on rental to the users on job
work basis
• Agency would provide material handling and logistics facilities and equipments (crates and
refer vans) on rental basis to user.
• Agency would also be supplying power and treated water to units in the CPC. Agency would
be recovering the supply cost with a mark-up of about 15% (mainly to recover the
transmission and distribution losses) on the cost.
• Non-core facilities would also be given on rental basis to various users by the agency
• Agency will also be recovering infrastructure management fee from the units on annual basis.

The key operating assumptions underlying the business plan are described below:

11.2 Operating Cost Assumptions

• It is assumed that the project will operate for 365 days in a year. In some cases like deep
freezer and cold storage will operate for around 9 months.
• It is assumed that all cost and revenue heads will escalate by 10 % per annum

11.3 Power Cost

The total connected load of the project is estimated at about 6 MW (CPC 1.5 MW, PPCs 0.50 MW
and units 3.0 MW). The power tariff has been assumed as Rs. 7.00 per unit for industries. Although
the DPR has indicated conventional power use for now, however KSIDC will suitably include Solar
Power generation system for around 1 MW to 2 MW within the park which will be planned after
commencement of the project.

The table below explains the annual power consumption cost of common infrastructure at CPC (1.50)
at full capacity:

Table 46: Annual Power Consumption Cost at Full Capacity

Rate/KW (Rs) 4.7

Load (MW) 1.5
Proportion-running on power 90%
Avg. Load Factor (%) 70%
Annual Consumption (KWH) 8278200
Annual cost of Power (Lakhs Rs) 389.08

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If the project runs at full capacity, the power consumption cost would be about Rs. 389.08 lakh,
though the actual consumption would depend on the utilization of the facilities.

11.4 Fuel Cost

Fuel cost for DG set has been calculated on the basis of per unit cost of production of power by DG
sets. It is estimated that the average running of DG set would be for 2 hrs/ day throughout the year.
The cost of power generation by using diesel as fuel has been taken at Rs 15 per unit and thus the
annual power cost comes to around Rs. 262.80 lakh at full capacity utilization.

11.5 Water Cost

Water cost for the project is based on the daily water requirement (for both domestic and industrial
purposes) of 9.2 MLD in the ration of 90:10. The water treatment & supply cost has been assumed as
Rs 25000 per ML for drinking purpose and Rs 40000 per ML for industrial purpose.

Table 47: Annual Water Cost

Daily water requirement 9.2 MLD

No. of Days 365
Total Water requirement/annum 3358 ML
Water treatment and supply cost 25000 + 40000 Rs/ML
Annual Cost 1337.73 Lakh Rs

The annual water cost comes to around Rs. 1337.73 Lakh at full capacity utilization.

11.6 Employee Cost

The employee cost has been assessed on the basis of organizational structure proposed by the
implementing agency, which takes into account the managerial and the support staff required for
operating the warehouses, cold storage, Sorting/grading/packing line and other facilities.

Table 48 Employee Cost

Grade/ Employee Number Salary/month Total/ Month (Rs)

(Rs)
CEO 1 100000 100000
VP- Operations 1 100000 100000
VP-Commercial 1 100000 100000
Manager Supply Chain & 1 60000 60000
Backward Linkages
Manager Operations 3 40000 120000
Managers Business Dev. 1 60000 60000
Managers Utilities 1 60000 60000
Managers Estate & 1 60000 60000
Maintenance

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Managers Quality Assurance 1 60000 60000
Managers HR& Admin 1 40000 40000
Managers Commercial 1 40000 40000
(Finance, Account etc.)
Food Technologist 1 50000 50000
Operation Staff 40 15000 600000
MIS and IT Staff 2 30000 60000
Total 56 1510000

At all PPCs
Supervisior 3 20000 60000
Operator 6 15000 90000
Account Assistant 3 12000 36000
Total At PPCs 12 186000
Total Employee Cost (Per 68 1696000
Month)

Manpower planning for the proposed project has been done after analyzing business operations of
similar projects. Other than the above list of employees, about 500 more people will be employed as
unskilled labor on daily wages basis for loading/ unloading purpose. As all the facilities would be
given to users on rental/job work basis the cost of loading and unloading, handling etc. would be
borne by the user, hence it has not been considered for calculation of operating expense.

11.7 Cost of Maintenance

The annual cost of maintenance has been assumed at 1.0% of the value of buildings, plant &
machinery and infrastructure.

11.8 Cost of Insurance

The cost of insurance has been assumed @ 1% of capital cost of plant & machinery, misc fixed assets
and buildings.

11.9 Admin Overheads

It includes cost towards travelling, business development, and stationary and to meet day to day
administrative expenses. The detail of administrative overheads is given in table below:

Table 49 Admin Overhead

Particulars Amount (Lakh Rs) Basis

Security and House Keeping Expenses 12.00 Rs 1 Lakh Per Month
Travelling 6.00 0.50 lakh p.m.
Stationary and Consumables 6.00 0.5 lakh p.m.
Business Development Expenses 20.00 Lakh Rs
Total 44.00 Lakh Rs/ Annum

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11.10 Provision for Crates Replacement

The crates to be used for handling of raw material may need replacement periodically. The table
below shows the schedule of crate replacement for the project.

Table 50 Crates Replacement Rate

Year Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9 Y-10
Number of
4000
crates
Rate/ Crate
250.00 275 303 333 366 403 443 487 536 590
(Rs)
Residual
Value/ crate 30.00 33 36 40 44 48 53 58 64 70
(Rs)
Replacement
Period 1.50
(Years)
Annual
66.7%
depreciation

Amount in Lakh Rs
Year Y-1 Y-2 Y-3 Y-4 Y-5 Y-6 Y-7 Y-8 Y-9

Opening
10.00 10.00 9.79 10.38 11.27 12.34 13.58 14.93 16.42 18.06
Balance
Depreciation 0 6.67 6.52 6.92 7.52 8.23 9.05 9.95 10.94 12.04
Provision for
Crate
Replacement 0 6.45 7.12 7.81 8.59 9.47 10.40 11.44 12.59 13.87
@ 100%
utilization
Closing
10.00 9.79 10.38 11.27 12.34 13.58 14.93 16.42 18.06 19.89
Balance

It has been assumed that such replacement may be necessary every 18 months. To meet the
requirement of crates replacement the provision has been made based on the annual depreciation cost
and residual value of the crates. Considering the life of 1.5 years for crates the depreciation rate has
been assumed as 66.7.

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12 Financial Assumptions
12.1 Taxes
The income tax has been taken @ 32.45% as per the prevailing rate of income tax for
corporate/industry players. The Minimum Alternate Tax (MAT) rate is taken as 18.5% plus service
tax( ~ 20.90%) as applicable as per the prevailing rate.

12.2 Depreciation Rates

Depreciation has been calculated using straight-line method for book purpose, whereas for tax
purpose written down value method has been used. The rate of depreciation for plant & machinery,
Misc fixed assets, buildings and enabling infrastructure has been given in the table below:

Table 51: Rates of Depreciation

Assets Category Book Depreciation Tax Depreciation

One shift Two shift Three Shift
Plant & Machinery 4.75% 7.42% 10.34% 15.00%
Miscellaneous Fixed Assets 4.75% 7.42% 10.34% 15.00%
Buildings 3.34% 3.34% 3.34% 5.00%

12.3 Interest
Interest has been calculated @ 11 % per annum for term Loan without the government guarantee. The
repayment period has been kept at 6 years over & above the moratorium period of 8 quarters. The
term loan has been assumed as Rs. 1000.00 Lakh.

12.4 Revenue Assumptions

The developed land would be offered to units in the CPC on long term lease rentals. The lease rentals
to be charged from the units are calculated by loading the cost of basic enabling infrastructure on the
cost of land. The grant equivalent to around 42% of cost of enabling infrastructure and land
development has also been considered while calculating the proposed lease rentals. The entire allot-
able land is assumed to be leased out to units over a period of two years and recovery of land lease
rentals from the same would be recovered over a period of two years.

Table 52: Revenue from lease rentals

Land lease
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11
schedule
Leased
75% 25% 0% 0% 0% 0% 0%
proportion
Leased
34.95 11.65 0.00 0.00 0.00 0.00 0.00
Acres
Rate/ Sqm
(Rs) @
2342 2342 2577 2834 3118 3429 3772
25%
margin

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Land
Lease
3312.90 1104.30 0.00 0.00 0.00 0.00 0.00
Rent
(Lakh Rs)
Recovery
of land
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
lease
rentals
Annual
Lease
Rentals
per
331.29 331.29 331.29 331.29 331.29 331.29 331.29 331.29 331.29 331.29
Annum
(% of
Lease
Premium)
Lease
Rentals
per 110.43 110.43 110.43 110.43 110.43 110.43 110.43 110.43 110.43 110.43
Annum
(Lakh Rs)
Total
Proceed 331.29 441.72 441.72 441.72 441.72 441.72 441.72 441.72 441.72 441.72 110.43
(Lakh Rs)
 

In order to arrive at the above lease rentals, mark up of 25% has been taken on per sq m cost of Rs
1874 and accordingly, the lease rental for the developed plots is estimated at Rs 3312.90 per sq m
increasing at the rate of 10% per annum, which may be considered reasonable in view of the facilities
provided and the prevailing market rates in developed industrial estates in the state. The revenues
have been appropriated over 11 years. However the revenue collection has been staggered over the
period at the rate of 10%.

12.4.1 Revenue from Standard Design Factory Sheds:

Allot-able area of SDFs is assumed to be leased out to units and recovery of lease charges from the
same would be recovered. There will also be 10% increment every year, which may be considered
reasonable in view of the facilities provided and the prevailing market rates in developed industrial
estates in the state:

Table 53: Revenue from SDFs

Revenue from SDF Sheds

Area of SDF Sheds
2500
(Sqm)
Lease schedule for
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11
SDFs
Leased proportion 50% 50% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Area Lease (Sqm) 1250 1250 0 0 0 0 0 0 0 0 0
Rate/ Sqm (Rs) 3513 3865 4251 4676 5144 5658 6224 6847 7531 8285 9113
Land Lease Rent 43.92 48.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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(Lakh Rs)
Recovery of SDF
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
lease rentals
For Sheds leased in
4.39 4.39 4.39 4.39 4.39 4.39 4.39 4.39 4.39 4.39
Year-1 (Lakh Rs)
For Sheds lease in
4.83 4.83 4.83 4.83 4.83 4.83 4.83 4.83 4.83 4.83
Year-2 (Lakh Rs)
Total Proceed
4.39 9.22 9.22 9.22 9.22 9.22 9.22 9.22 9.22 9.22 4.83
(Lakh Rs)

The lease rental for the SDFs is estimated at Rs 3513 per sq m during 1st year of operation with 10%
increment every year, which may be considered reasonable in view of the facilities provided and the
prevailing market rates in developed industrial estates in the state.

12.4.2 Revenue from Deep Freezer

The rental charges for the deep freezer will also depend on product stored in the chamber. The
charges vary due to different volume, density and storage requirements (temperature, humidity etc.) of
different products. Around nine months of operations has been assumed. The table below provides
details about capacity, rentals and revenue.
Table 54: Revenue from Deep Freezer

Deep Freezer Capacity Rate/ MT(Rs) Months of Amount (Lakh

(MT/Day) operation Rs)
CPC at Cherthala 3000 1100 9 297.00

Revenue @ 100%
30 297.00
capacity utilization

12.4.3 Revenue from Cold Storage

The rental charges for cold storage will also depend on product stored in the chamber. The charges
vary due to different volume, density and storage requirements (temperature, humidity etc.) of
different products. The table below provides details about capacity, rentals and revenue.
Table 55: Revenue from Cold Storage

MA Cold Storages at: Capacity Rate/ MT/month Months of Amount (Lakh

(MT) (Rs) operation Rs)
CPC& PPCs
Cold Storages(3000 + 3300 1000 9
297.00
100x3)

Total 3300 297

Revenue @ 100% 3300 297.00

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capacity utilization
 

12.4.4 Revenue from pre‐processing, sorting, grading facility at PPC

Pre-processing, sorting, grading has been proposed at three 3 PPCs namely Thoppumpady, Vypeen
and Munambam. 9 months of operating period has been proposed for these PPCs.

Table 56: Revenue from Pre-Processing at PPC

Sorting, grading, Capacity Months of Amount

Rate/ MT (Rs)
packing facilities (MT/ Hr) operation (Lakh Rs)
PPC 6 700 9 30.24
PPC 6 700 9 30.24
PPC 6 700 9 30.24
Revenue @ 100%
capacity 90.72
utilization

12.4.5 Revenue from Dry Warehouse

A small dry warehouse has also been proposed for storing materials which would be ancillary in
nature. In this case also 12 months of operation has been taken.

Table 57: Revenue from Dry Warehouse

Capacity (S Rate/ Sqft/month Months of Amount (Lakh

FT) (Rs) operation Rs)
At CPC 8611.12 14 12 14.47

Revenue @ 100% 14.47

capacity utilization

12.4.6 Revenue from Deboning and Canning

The bulk of the revenue would come from the deboning and canning center. With a capacity of 50
Tons per day and 12 months of operations, it would generate revenues of around Rs. 360 lakhs per
annum.

Table 58: Revenue from De-boning & Canning

Capacity Rate/ MT (Rs) Months of Amount (Lakh

(MT/Day) operation Rs)
CPC 50 3000 12 540.00
Revenue @ 100%
capacity 540.00
utilization

12.4.7 Revenue Quality Control & Food Testing Lab

The Quality Control & Food Testing lab would address issues relating to food testing, safety, quality,
inspection, certification and standards. Sea food/Fish being a higher perishable and sensitive

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commodity, it is necessary for strict quality monitoring. Moreover, most of the products are envisaged
to be exported from the Sea Food Park, hence it would be of paramount importance to have a state of
the art testing laboratory. Along with a lab at the CPC, three other smaller labs are also proposed at
the PPCs. The revenue calculations for the facility are given in the following table.

Table 59: Revenue from Lab at CPC

Facility at CPC Sample nos. in Rate/sample (Rs) Amount (Lakh Rs)

1st Year
Test Type
Physical Testing 4500 500 22.50
Microbiological
2000 550 11.00
Testing
Chemical Testing 1500 500 7.50
Hazardous
200 2500 5.00
Testing
Miscellaneous 1800 500 9.00
Revenue @ 100%
10000 55.00
capacity utilization

Table 60: Revenue from lab at PPCs (3 Nos.)

Facility at PPC(3 Sample nos. in Rate/sample (Rs) Amount (Lakh Rs)

Nos) 1st Year
Test Type
Physical Testing 4500 500 22.50
Microbiological
2000 550 11.00
Testing
Chemical Testing 1500 500 7.50
Hazardous
200 2500 5.00
Testing
Miscellaneous 1800 500 9.00
Revenue @ 100%
10000 55.00
capacity utilization

Assuming equal sample rates at both the CPC and PPCs, cumulative revenue of Rs. 110 lakh is
projected for the first year of operation.

12.4.8 Revenue from Crates

The daily user charge for crates has been assumed at Rs 0.5 per crate. The table provides revenue
calculation details for crates.

Table 61: Revenue from Crates

Rate/day/crate Amount
Number of crates Days of Use
(Rs) (Lakh Rs)
4000 365 0.5 7.3
Revenue @ 100% capacity utilization 7.3

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The crates would be able to contribute about Rs 7.3 lakh to the total revenue at full capacity
utilization.

12.4.9 Revenue from Reefer Vehicles

The user charges for vehicles have been taken as an average of Rs 50000/ month per vehicle. All the
operating expenses would be borne by user. The table provides revenue calculation detail of reefer
vehicles.

Table 62: Revenue from Reefer Vehicles

Number of Vans/ trucks Months of Use Rate/Month/Vehicle Amount (Lakh

(Rs) Rs)
10 12 50000.0 60.00

The annual expected revenue from logistics facility is estimated to be Rs 60.00 lakh at full capacity
utilization.

12.4.10 Revenue from Ice Flake Units at the PPCs

3 Ice Flakes units have been proposed at Thoppumpady, Vypeen and Munambam. Flaked ice is very
necessary as it acts as storage support form fishes/sea food both for domestic as well as out-state
market. It is expected that these units would have a high operability in terms of usage.

Table 63: Revenue from Ice flake units

Capacity Months of Amount

Rate/ MT (Rs)
(MT/Day) operation (Lakh Rs)
PPC-
10 1000 12 36.00
Thoppumpady
PPC-Vypeen 10 1000 12 36.00
PPC-
10 1000 12 36.00
Munambam
Revenue @ 100%
capacity 108.00
utilization

12.4.11 Revenue from Non‐core infrastructure

The non-core facilities such as offices, Training centers etc would be given on rental basis to the
users.
Table 64: Revenue from Non-core Infrastructure

Facility at CPC Area for Rent Rate/Sq.m Months for Amount

(Sqm) (Rs) rental (Lakh Rs)
Facility
Offices & Guest house 3000 250 12 90.00
Training Centre 800 400 12 38.40

Revenue @ 100% capacity

128.40
utilization

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12.4.12 Basic Enabling Infrastructure
The basic enabling infrastructure would also act as a revenue source and would be offered on lease.
The following table provides us with the revenue projections.

Table 65: Revenue from Basic enabling Infrastructure

Revenue from Parking

No of Days of Amount
Type of Trucks Rate/ Truck
trucks/ day operation (Lakh Rs)
Large trucks 80 100.00 330 26.40
Small trucks etc. 50 60.00 330 9.90
Revenue @ 100% capacity
utilization 36.30

Revenue from Weighbridge

No of Days of Amount
Type of Trucks Rate/ Truck
trucks/ day operation (Lakh Rs)
Large trucks 80 60.00 330 15.84
Small trucks etc. 50 50.00 330 8.25
Revenue @ 100% capacity
utilization 24.09

12.4.13 Revenue for Effluent Treatment Processing

 

The revenue from effluent treatment processing is provided in the following table:

Table 66: Revenue from ETP

Revenue from Process Water Charges

Treatment
Users Capacity (MLD) Share in total Cost Amount (L
Charges (Rs)
SPV 1.39 15% 0 202.9
Units 7.71 85% 15% 1294.5
Total 9.10 100% 1497.4
ETP Charges collected from units 1294.5
 

12.5 Infrastructure Management Fee

The Implementing Agency would be managing (operation, management, maintenance, security,

insurance etc.) the entire common infrastructure provided in the park. For these services the agency
would collect an infrastructure management fee from the units based on the area allotted to individual
unit. The management fee would be a percentage of value of total common infrastructure managed by
agency.

Table 67: Management Fee

Infrastructure Management Fee

Management fee for infrastructure 6.0% of infra cost
Cost of enabling infrastructure at CPC 5463.50 Lakh Rs

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Total common infrastructure 5463.50 Lakh Rs
Total area for units and buildings 49.90 Acres
Area used by Units 46.60 Acres
Area used by SPV 3.30 Acres
Proportionate recovery from units/ annum 306.13 Lakh Rs
Proportionate recovery from units/ annum 162.33 Rs/ Sqm

12.6 Capacity Utilization

It is estimated that the capacity utilization of the project will be 50% in the first year of operation. As
the implementing agency would be able to attract units in the proposed Mega Food Park through its
well established linkages and trade network, the project would be able to use 80% of capacity by the
fifth year of operation.

Table 68: Capacity Utilization

Year Capacity utilization

Year I 50%
Year II 60%
Year III 70%
Year IV 80%
Year V 80%

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13 Financial Projections

The projected profitability statement, cash flow and balance sheet for the project are given below:

Table 69: Projected Profit and Loss Account

Year 1 2 3 5 10 15
Capacity Utilization 50% 60% 70% 80% 80% 80%
(Lakhs Rs)
Revenue
CPC
Land Lease Rentals 331.29 441.72 441.72 441.72 441.72 0.00
Rentals from SDF Sheds 4.39 9.22 9.22 9.22 9.22 0.00
Core Infrastructure 798.96 1061.89 1373.01 1931.41 3296.04 5789.37
Non Core Infrastructure 64.20 84.74 108.75 150.39 242.21 390.08
Enabling Infrastructure 677.45 894.23 1147.60 1586.97 2555.82 4116.18
Management Fee 162.33 178.57 196.42 237.67 382.77 616.46
Total CPC 2038.63 2670.38 3276.73 4357.39 6927.78 10912.08
Revenue PPC
PPC-Thoppumpady 18.00 23.76 30.49 42.17 67.91 109.37
PPC-Vypeen 18.00 23.76 30.49 42.17 67.91 109.37
PPC-Munambam 18.00 23.76 30.49 42.17 67.91 109.37

Total PPCs 54.00 71.28 91.48 126.50 203.73 328.10

Revenue 2092.63 2741.66 3368.20 4483.88 7131.51 11240.19

Expenses
Power 194.54 256.79 329.55 455.72 733.94 1182.01
Water 4.35 5.27 6.21 7.16 7.16 7.16
ETP 603.91 724.69 845.47 966.25 966.25 966.25
Fuel 131.40 173.45 222.59 307.81 495.73 798.39
Employee Cost 203.52 223.87 246.26 297.97 479.89 772.87
Maintenance 112.00 123.20 135.52 163.97 264.08 425.31
Insurance 56.31 56.31 56.31 56.31 56.31 56.31
Admin & Selling Overheads 44.00 48.40 53.24 64.42 103.75 167.09
Provision for Crates 3.23 4.27 5.47 7.57 12.20 19.65
replacement
Lease Expenses at PPC 6.53 7.18 7.90 9.56 15.40 24.80
Total Expenses 1353.25 1616.25 1900.61 2327.19 3119.32 4395.03

EBITDA 739.38 1125.41 1467.59 2156.69 4012.19 6845.15

Interest Long Term Debt 104.96 90.65 74.69 37.07 0.00 0.00
(LTD)
Interest Working Capital 9.30 11.11 13.07 13.07 13.07 13.07
borrowing
Depreciation 540.88 540.88 540.88 622.19 622.19 289.47
PBT 84.23 482.77 838.96 1484.36 3376.93 6542.62

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Tax 17.60 100.90 175.34 482.95 1170.89 2131.49
Net Profit (PAT) 66.63 381.87 663.62 1001.41 2206.04 4411.13

The above table indicates that the project will be able to achieve profit from first year of operation,
which will reach to Rs 1001.41 lakh in the fifth year of operation and to Rs. 4411.13 lakh in the 15th
year of operation.

Table 70: Projected Cash Flow Statement

Year -1 0 1 2 5 10 15
Sources
Cash from Operations
PAT 0.00 0.00 66.63 381.87 1001.41 2206.04 4411.13
Add Depreciation 0.00 0.00 540.88 540.88 622.19 622.19 289.47
Net Cash from Operations 0.00 0.00 607.51 922.75 1623.60 2828.23 4700.60

Cash From Financing

Equity 2750.53 4164.59
Grant from MoFPI 1988.78 3011.22
Grant from GoB 0.00 0.00
Term Loan 397.76 602.24
Margin Money for Working 28.19
Capital
Increase in Working Capital 0.00 0.00 84.58 16.44 0.00 0.00 0.00
Borrowing
Total Cash inflow 5137.07 7778.05 720.28 939.19 1623.60 2828.23 4700.60

Uses
Capex on Land 673.00 97.90
Capital expenditure excluding 4452.86 7663.17
land
Increase in Working capital 0.00 0.00 112.77 21.92 9.83 15.83 25.50
Repayment of principal 0.00 0.00 124.91 139.23 192.80 0.00 0.00
Total Uses 5125.86 7761.07 237.68 161.14 202.63 15.83 25.50

Opening Cash Balance 0.00 11.21 28.19 510.79 3586.45 13392.30 30122.43
Surplus/ Deficit 11.21 16.98 482.60 778.05 1420.97 2812.40 4675.10
Closing Cash Balance 11.21 28.19 510.79 1288.84 5007.42 16204.70 34797.53

It is evident from the above table that the project will be able to generate cash from 1st of its
operations.

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Table 71: Projected Balance Sheet

Year -1 0 1 2 5 10 15
Liabilities
Long Term Liabilities
A. Net Worth
Equity Capital 2750.53 6915.12 6943.32 6943.32 6943.32 6943.32 6943.32
Grant from MoFPI 1988.78 5000.00 5000.00 5000.00 5000.00 5000.00 5000.00
Grant from GoB 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Reserve & Surplus 0.00 0.00 66.63 448.50 2944.26 11311.50 28258.28
Net Worth 4739.32 11915.12 12009.94 12391.81 14887.58 23254.81 40201.59
Term Loan 397.76 1000.00 875.09 735.86 214.90 0.00 0.00
Total Long Term Liabilities 5137.07 12915.12 12885.03 13127.68 15102.48 23254.81 40201.59
(1)

Current Liabilities
Short term borrowing 0.00 0.00 84.58 101.02 118.79 118.79 118.79
(W.C.)
Total Current Liabilities 0.00 0.00 84.58 101.02 118.79 118.79 118.79
Total Liabilities 5137.07 12915.12 12969.61 13228.69 15221.26 23373.60 40320.38

Assets
Fixed Assets
Gross Fixed Assets 5125.86 12886.93 12886.93 12886.93 12886.93 12886.93 12886.93
Less Accumulated Dep. 0.00 0.00 540.88 1081.76 2867.02 5977.97 7730.33
Net Fixed Assets 5125.86 12886.93 12346.05 11805.17 10019.91 6908.96 5156.60
Total Fixed Assets 5125.86 12886.93 12346.05 11805.17 10019.91 6908.96 5156.60

Current Assets
Working Capital 0.00 0.00 112.77 134.69 193.93 259.94 366.25
Cash Bal 11.21 28.19 510.79 1288.84 5007.42 16204.70 34797.53
Total Current Assets 11.21 28.19 623.56 1423.52 5201.36 16464.64 35163.78
Total Assets 5137.07 12915.12 12969.61 13228.69 15221.26 23373.60 40320.38

Key Performance Indicators: The key performance indicators are as follows:

Table 72: Projected Key Performance Indicators

Year 1 2 3 4 5 10 15
EBITDA Margin 35.33% 41.05% 43.57% 46.14% 48.10% 56.26% 60.90%
PAT margin 3.18% 13.93% 19.70% 20.25% 22.33% 30.93% 39.24%
Debt-Equity Ratio 0.07 0.06 0.04 0.03 0.01 0.00 0.00
Debt to EBITDA 1.30 0.74 0.48 0.28 0.15 0.03 0.02
ratio
Interest Coverage 6.47 11.06 16.72 27.05 43.01 307.05 523.86
Ratio
DSCR 3.10 4.41 5.56 6.57 7.22
Average DSCR 8.93

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Max. DSCR 7.98
Minimum DSCR 3.10
Project IRR 13.20%
Equity IRR 21.4%

From the analysis of the above indicators, it is evident that the financial health of the projects seems to
be good. The project is earning good returns and profit margins. The average DSCR is about 8.93,
which indicates that the project would be able to repay its debt liabilities. Moreover, the time series
analysis of debt-equity ratio shows that project will be able to reduce its debt burden from its capital
structure. The project IRR is coming around 13.20 % and equity IRR is coming around 21.40 %;
which seems attractive from an investment point of view.

13.1 Proposed Units in the Sea Food Park

In accordance with the guidelines of the MoFPI, leveraging of investment through food processing
units will be done by the KSIDC. The common infrastructure proposed is such that investment in the
core processing facilities will be justified by the potential investment units. The proposing of potential
units also takes into account the raw material, processable nature of the product and marketable
surplus of the same in the cluster. The cluster is rich with huge availability of marine products. The
units are proposed in a manner to benefit from the location advantage which would also form part of
the marketing strategy to attract these units. The proposing of processing units is based on a scientific
approach:

ƒ Selection of raw material in the region

ƒ Identification of processing opportunities for raw material availability
ƒ Identification of investment units based on processing opportunities

Overall the following types of fish processing units may be established in the park:

1. Freezing & Processing of Raw Fish & Fishery Products

2. Freezing of Raw / Blanched Fish &Fish Products
3. Freezing of Raw and Cooked Fish & Fishery Products
4. Manufacturing of Canned Pasteurized and Chilled Crab Meat
5. Packing of Fresh / Chilled Fish and Fishery Products and Freezing of Raw and Cooked Fish
and Fishery Products
6. Ready to Eat Fishery Product in Hermetically Sealed Pouches
7. Processing & Packing of Fish Oil Filled in Soft Gelatin Capsules.

The following table provides a list of units that are proposed to come up in the park:

Table 73: Types of Units

Proposed
Sl No Industrial Plots/MSME Units Common Facility used Capacity( Tons
per Annum)
Fish and Shrimp Processing and
1 Pre Processing, Ice Plant 6000
exporting unit
Basa processing and domestic
2 Pre processing, Cold Storage 6000
marketing unit

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Freezing, Cold Storage,
3 Sea fish cooking unit 10000
Vehicles
Freezing, Cold Storage,
4 Tilapia filleting unit 5000
Vehicles
Pre Processing, Freezing,
5 Basa fillet cooking unit -1 12000
Testing Lab
Freezing, Cold Storage,
6 Basa fillet cooking unit -2 12000
Vehicles
7 Fish canning unit Pre processing, and ICE, Steam 6000
Fish Sashimi and Shrimp other
8 Pre Processing, Ice Plant 2000
minced ready to eat production unit
Freezing, Cold Storage,
9 Sea fish and Shrimp Breading unit 10000
Vehicles
10 Basa fillet Breading unit – 1 Freezing, Cold Storage 10000
Freezing, Cold Storage, Ice
11 Basa fillet Breading unit -2 2000
plant
12 Shrimp meal production unit Freezing, Cold Storage 6000
Fish intestine suture thread
13 Freezing, Cold Storage 10000
manufacturing unit
Squid, Cuttle fish, crab processing Freezing, Cold Storage, Ice
14 10000
and exporting unit Plant
Shrimp preprocessing and Freezing, Cold Storage, Ice
15 5000
exporting unit Plant
Pre Processing, Freezing,
16 Shrimp cooking unit 50
Testing Lab
Pre Processing, Freezing,
17 Shrimp battering unit 6000
Testing Lab
Fish and shrimp noodles Dry Warhouse, Pre-
18 6000
manufacturing unit processing
19 Polybag sealing Units
20 Label printing Units

In this regard, KSIDC has already allotted land to units for setting up manufacturing facilities in the
park. They are as follows:

1. Friend's Marine Industries

2. Aqua Sea Food (India) Pvt Ltd
3. Sait Sea Foods,
4. Premier Marine Foods
5. Premier Innovative Foods,
6. Ghan Marine Exim
7. Busthan – Alwathaniya
8. Monto Marino P Ltd,
9. Keshodwala Foods
10. Nasfood Exim
11. GRAND POLY PACK (Cartons & Polypack)
12. Grand Marine Exim
13. Mira Marine Foods

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14 Proposed Backward Integration Mechanism
To establish the viability and round the year supply of raw material, KSIDC would make all possible
effort to establish the backward linkages with the fishermen groups, societies etc. The established
sourcing linkages would help in attracting the food processing units in the CPC and would also be
crucial for achieving the economies of scale.

Figure 51: A diagrammatic summary of the various procurement channels to be explored and adopted
by KSIDC

There are various models for linkages that can be established for supplies of fresh seafood produce to
the Sea Food Park, as indicated in the diagram.

Following models would be explored by KSIDC for procurement of various raw materials in the
cluster:

Direct supplies by fishermen/fishermen’ society

The fishermen can directly supply to the food park. Currently, fishermen are supplying to processors
directly as and when the requirement arises. This linkage can be extended to a sustainable long term
supply chain mechanism since the Sea Food Park is targeted to be operational for at least 300 days per
year.

Existing middlemen/agents

Based on the requirements of the food park, the middlemen may procure the fishes and supply to the
Sea Food Park. However, it would be preferable by the Sea Food Park to establish direct linkages
between with the growers.

Contractual arrangement with the fishermen/ fishermen societies

In order to engage the fishermen on a long term basis to ensure regular and uninterrupted supply of
raw materials, necessary contractual arrangements with the fishermen or the fishermens’ society may
be entered into.

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While it will take some time to set up the new institutions, build up confidence with the fishermen
about the Sea Food Park operations, and attain the high volume of production to sustain the linkages,
it will be imperative to continue with the conventional procurement chain, so that the F&V supply for
the operations is not disrupted during the interim period. The development of the new linkages can be
done simultaneously with the procurement undertaken through existing means.

It may also be possible to involve the old linkages in the new institutional set up so that their role and
experience can be put to use advantageously in the Sea Food Park such as

• Engage the middlemen as procurement agents in the food park

KSIDC proposes to set up support services that would enable processors to build efficiencies both in
their forward as well as backward linkages. Following are the support services proposed:

• Extension Cell: While processing activity initiates in the region, there would be a need to
educate fishermen in the catchment area on various aspects of fishing and post harvest
handling of produce. This would include education on suitable varieties for processing. A
separate cell would be formed to address these extension needs of various processors. This
facility would be available to fishermen, processors and traders outside the park also.

• Quality Control Cell: This division would form the common platform that would take care
of quality control requirements of various processors both for raw material as well as end
products. This facility would be available to fishermen, processors and traders outside the
park also and be supported by a food testing laboratory.

• Logistics and Distribution Cell: A Common logistics and distribution cell will be set up at
the CPC that would take care of both inward and outward logistics requirements of the
processors. This team would also facilitate in distribution of end products of each processor.
This facility would be available to fishermen processors and traders outside the park also.

• Liaison and Marketing Cell: A common marketing cell would be formed that would support
various processors in marketingof their end products. This would include facilitating
processors in market studies, marketingstrategies as well as facilitating linkages with various
touch points including governmentagencies, export and certification agencies, documentation
agencies, retailer touch points, C&Fagents etc. This facility would be available to fishermen,
processors and traders outside the parkalso.

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15 Project implementation framework and O&M
15.1 Role of Implementing Agency
The roles of KSIDC Food Parks for the project are envisaged as below:

• KSIDC shall bring necessary capital for the project

• KSIDC would obtain from concerned statutory authorities necessary sanction / approval etc
requisite for commencement and operation of the project.

• KSIDC will also be responsible for marketing of the project and will put in concerted efforts
to bring in potential units and investments in the park.

15.2 Role of Project Management Consultant (PMC)

PMC would assist KSIDC in development and implementation of the Project. Towards this effect
IL&FS Cluster Development Initiative Ltd. has been appointed by KSIDC as the PMC for project
implementation. The PMC has been working in close association with the team from the KSIDC for
implementation of the SEA FOOD PARK project. PMC shall be providing following services during
the project implementation period.

15.2.1 Project Planning, Engineering and Procurement

Technical services to KSIDC for carrying out surveys/studies and getting statutory clearances from
concerned government agencies required before start of project construction as follows:
ƒ Assistance in preparation of application to State Pollution Control Board for Consent to
Establish‘ for submission by KSIDC
ƒ ToR for consultant to be appointed for Environmental Clearance (If applicable)/Other ToRs
for technical surveys/studies required for the Project
ƒ Assistance in preparation of application to SEB for power supply and distribution for
submission by KSIDC
ƒ Assistance in preparation of final version of Master Plan and assist KSIDC in getting requisite
approval from local Town and Country Planning Authority
ƒ Preparation of Project Implementation Schedule in line with approval for the Project given by
SEA FOOD PARKI

Detailed engineering of the Project including designing, detailed drawings, preparation of

detailed cost estimates of the various infrastructure and other facilities, estimation of item
wise quantities (BOQ), preparation of bid documents, bid process management, assisting
KSIDC in selection and appointment of consultants/contractors/equipment suppliers,
preparation and execution of construction/supply contracts to facilitate commencement of
Project construction as per the Project Implementation Schedule. The detailed engineering
design and preparation of tender would include following tasks:

ƒ Understanding requirements of the KSIDC, preparation of plans

ƒ Discussion with KSIDCon specifications of Core processing facilities, basic infrastructure,
factory sheds and other items
ƒ Based on the plans and specifications approved by the KSIDC, engineers‘ cost estimates
would be prepared, based on prevailing Schedule of Rates (SoR) for the districts

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ƒ After approval of costing by KSIDC, Tender document would be prepared by respective team
with the inputs from PMC and the terms and conditions of the tender would be decided in
consultation with the KSIDC
ƒ Accordingly, tender would be floated, bids would be received and opened as per the
transparent procedure laid down by the KSIDC, PMC shall provide assistance to KSIDCin
negotiation and finalization of the tender
ƒ Preparation of cost estimates and tender largely depends upon the flow of information from
KSIDC. Therefore, KSIDCshall be responsible for providing details of their requirements to
PMC which would be critical to ensure early completion of design, engineering and tendering
process
ƒ To ensure efficiency of operations, following tender packages may be considered.

15.2.2 14.2.2 Project Management and Supervision during Project Construction

After appointment of the contractors/suppliers, PMC will supervise along with the operations team of
KSIDC, the work output of the contractors/suppliers/consultants with the objective to ensure
compliance of quality, completeness and compatibility of the work output with the
construction/supply contracts.

15.2.3 14.2.3 Release of Grant Funds

PMC will prepare all necessary documentation for submission to MOFPI in order to facilitate release
of funds sanctioned under the SEA FOOD PARKS.

15.2.4 14.2.4 Liaison for External Infrastructure

PMC will assist the KSIDC in its meetings/interactions with Government agencies, consultants, and
other external agencies for the purpose of successfully developing the Mega Food Park.\

15.2.5 14.2.5 Other assistance to KSIDC

PMC will along with KSIDC would attend all the meetings convened by MOFPI, State Government
and other relevant authorities during the project implementation process and address relevant queries
and provide clarifications as sought.

Figure 52: PMC Role

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15.3 Proposed contractual framework

• On selection of construction contractor and equipment supplier through transparent bid

process management process, KSIDC will enter into an agreement with such selected
contractors and equipment suppliers which would include detailed terms and conditions laid
out in the Bid Document.

• KSIDC shall also enter into a Lease /Leave and License Agreement with each of the
potholders/ unit holders in the Park providing those rights to set up food processing units.
This agreement will contractually bind the users to pay all such charges as may be levied by
KSIDC SEA FOOD PARK for development and maintenance of infrastructure assets.

15.4 Project implementation schedule

The proposed project implementation schedule is shown below:

Figure 53: Project Implementation Schedule

Activities Year 1 Year 2 Year 3

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Possession of land and Appointment of PMC etc has been completed
Environmental Impact Assessment
Study and Approval from State PCB
Appointment of Human Resources
Allotment of water and electricity
Finalization and approval of Master
Plan
Preparation of detailed engineering
and architectural drawings
Preparation of detailed cost estimates,
BOQ Etc
Finalization of Tender Packages and
Preparation of Tender Documents
Award of work for land and site
development and select components of
basic enabling and core infrastructure
Completion of site development with
demarcation of developed plots
Civil works for basic enabling
infrastructure- Roads, Water, power
etc
Laying of water supply, sewarage,
storm water, WTP, STP and fire
fightingequipmentsetc
Installation of electricity lines and
telecommunication lines
Construction of core infrastructure
components

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Construction of non-core infrastructure
components
Landscaping
Plant & Machinery
Finalization of specifications,
capacities and type of equipments for
P&E of basic enabling infrastructure
components
Completion of tendering process and
selection of suppliers for P&E of basic
infrastructure components
Finalization of specifications,
capacities and type of equipments for
P&E of core infrastructure components
Completion of tendering process and
selection of suppliers for P&E of core
infrastructure components
Installation/Erection of Plants and
Equipments
Project Marketing and Promotions
Mass communication campaign
Organizing road shows and awareness
about project
Identification of potential investors
Finalization of allotment of plots
Trial Runs
Inauguration of the Park
 

15.5 Proposed framework for O&M

The Mega Food Park is proposed to be owned by KSIDC. KSIDC will own and manage common
infrastructure established within the Park and will also provide requisite technical and extension
services. Thus, the Central Processing Centers, Primary Processing Centers and Collection Centers,
backward linkage mechanism and front end linkages will be owned and managed by KSIDC. In case
of PPCs, KSIDC may consider leasing out operation and management of these to interested
professional agencies or entrepreneurs in the region.

Since the O&M management is a critical component of the overall functioning of Mega Food Park
(SEA FOOD PARK). The overall O&M management would be broadly coordinated through distinct
functions namely Operations & Maintenance, Sales & Marketing, Finance and Administration. The
key lies in the well-defined functions and the linkages between organizations and how well the
operations department and the outsourced agencies, as the case may be, take this forward for efficient
functioning of the SEA FOOD PARK. The proposed team along with structure for operations and
management of the Park is as follows:

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Figure 54 Proposed management structure

15.6 14.6 Proposed framework for recovery of charges

Charge I – Lease rentals through long term lease of developed plots to units in the Park and rentals
from MSME units for usage of Plug n’ Play facility

Charge II – Charges based on usage of the facilities like

• Warehouse
• Parking
• Weighbridge
• Cold storage facilities
• Deboning & Canning
• Deep Freezer & Cold Storage
• Rentals of plastic crates

Charge II – Monthly variable Utility charges will be based on monthly consumption of utilities such
as water, power, effluent treatment, steam, will be charged from the member units as per actual
consumption and on cost basis.

Charge III – Monthly Rentals from other Facilities

The KSIDC will outsource common facilities like shops, canteen, banks and other space to different
agencies for providing requisite facilities. These agencies / individuals will be charged on actual for
the facilities like water, electricity utilized by them.

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The operations of the units will be adequately supported by requisite capacities to absorb the cost of
the infrastructure as proposed to be charged by KSIDC to recover the capital and operational costs as
briefly described above.

KSIDC shall enter into an Agreement with the units. The Agreement shall provide rights to the units
for setting up food processing facilities in the park. The Agreement shall also contractually bind the
Industrial Units to pay all such charges as may be levied by KSIDC for the allotment, development
and maintenance of infrastructure assets and provide recourse by way of rights to replace units that
have defaulted in respect of payments to KSIDC or which do not commence operations within 6
months from the date of commencement of commercial operations of the KSIDC.

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16 Risk analysis and mitigation framework
The Mega Food Park projects, in this case Sea Food Park projects, involve certain challenges and
complexities during implementation phase as well as during operational phase. Such challenges and
complexities may lead to certain risk factors during implementation which are needed to be analyzed
and mitigation framework to be arrived at. Mechanisms for minimizing such risks include: (a)
conducting due diligence as to the possibility of the relevant risks; (b) allocating such risks to other
parties as far as possible and (c) requiring adequate insurances which note the financier’s interests to
be put in place.

Financiers are concerned with minimizing the dangers of any events which could have a negative
impact on the financial performance of the project, in particular, events which could result in the
project not being completed on time, on budget, or at all; the project not operating at its full capacity;
the project failing to generate sufficient revenue to service the debt; or the project prematurely coming
to an end.

Every project is unique and it is not possible to compile an exhaustive list of risks or to rank them in
order of priority. What is a major risk for one project may be quite minor for another. Therefore, it is
important to categorize the risks according to the phases of the project within which they may arise
(1) The design and construction phase; and (2) The operation phase. It is useful to divide the project in
this way when looking at risks because the nature and the allocation of risks usually change between
the construction phase and the operation phase.

16.1 Project development/construction risk

Mitigation measures for risks during construction phase are as follows:

Table 74: Project Risk & Mitigation Framework

Risk Mitigation Framework

Project Development/Construction risk

Land Development Developed land with all clearances available with KSIDC

The park site is only 35 Kilometres distant from Kochi Port and the area
is
famous for seafood processing activities including pre-processing,
secondary processing,freezing and export oriented business. The
Site Connectivity proposed Mega Food Park is well connected with adequately wide road
which cancater 40 foot container trucks. The nearest Highway is at Aroor
and the distance to theNH is 15 KMs. The nearest railway station is
Cherthala situated at a distance of 10 KMs.The distance to the Kochi
International Airport is 50 Kms and the seaport at Kochi is 35KMs.
Project Design
Approvals, bid KSIDC has appointed IL&FS Cluster Development Initiative Limited
management and (IL&FS Clusters) as its PMC, which will assist KSIDC in Project
construction Development, Approval Process, Bid Process Management and
supervision of the Construction Supervision of the Project during implementation. Given
Project rich experience of IL&FS Clusters in implementation of large scale

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cluster based projects across sectors and its association with MOFPI as
the Program Management Agency for Mega Food Parks, it is expected
that project will undergo smooth implementation in a timely manner duly
leveraging wide experience of IL&FS Clusters.
Promoters are Kerala State Industrial Development Corporation having
Promoter Risk significant experience in developing industrial infrastructure. They also
have adequate net worth to support the project

In food processing industry, financing of projects is primarily done on a

stand-alone basis, with banks and financial institutions adapting the same
risk models which are applied to the manufacturing sector. The key
parameters of evaluation of risk rating of companies involve assessment
of the following:

Financial risk: Evaluation of the financial position of the company,

turnover, profitability, liquidity, debt burden, debt service capability and
repayment, asset quality, financial flexibility and cash flow adequacy
Financing Risk

Industry risk: Industry characteristics, size, growth potential, cyclicality,

Government policies (duties, price controls, licensing etc.), competition,
threats of imports/substitutes/unorganized sector, technology risk, entry
barrier/s, bargaining power with supplier/s

Business risk: Market position, product range, quality, brand equity,

operating efficiencies, availability of raw material

Given the financial strengths of KSIDC, financing risk may not be

considered a potential risk and a challenge to the project.

The implementing agency will enter into date certain fixed price contracts
with contractors and suppliers of the equipments. The risk of delay and
Delay in project
cost overrun would be passed on to the contractors/suppliers. Such
completion and / or
clauses would be suitably provided for in the TOR/MOU to be entered
construction cost
into with various contractors and equipment suppliers.
overrun
The technical consultant would periodically submit progress reports on
the project construction and would bring any time slippages to the
attention of the Board of Management.
The source of water would be from external water supply at CPC and
Availability of Water
PPC

The implementing agency would route project funds through Trust &
Utilization of the money
Retention Account to ensure that the money raised by KSIDC from the
by KSIDC for
promoters as equity contribution, from the units by the way of long term /
unauthorized payments
non refundable deposits, GoI’s grant and debt are utilized in a transparent
manner for authorized expenditure during the project implementation and

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operational phase. A suitable Trust and Retention Account Framework
would be put in place and agreement with TRA agent would be entered
into for safeguarding project funds and its transparent and proper
utilization.

The implementing agency shall open and maintain Trust and Retention
Account (TRA) with a bank designated as TRA agent for escrowing all
funds flows / cash flows of KSIDC during the project implementation
stage.
The proposed Trust and Retention Account Framework has been given
below
Receipts of Funds - Trust and Retention Account
Receipts of all money by KSIDC, including but not limited to the
following sources shall be credited to the TRA –
• Equity Draw downs from Promoters of KSIDC
• Grant from the Govt.
• Term loan from Banks/FIs
• Monthly charges from the units, rented facilities
• Any other source of funds

Utilization of Funds – Expenditure Accounts

Funds would be permitted to withdraw from the TRA account for the
purpose of utilization in and order of priority laid out below –

• For the construction of the project – Payments to be made to

contractors and equipment suppliers for various components of
project. The invoices would be duly verified by the various
technical consultants/engineers for the specific areas appointed
by KSIDC under the advice of the PMC. Any payment to
contractors and equipment suppliers will be made upon
recommendation of PMC to TRA Agent. The contractors and
equipment suppliers will be selected through prescribes and
defined guidelines for procurement of goods & services for which
a procurement policy approved by Board shall be followed.

• Operating expenses like

ƒ Payments towards salary and other administrative
expenses during the project construction as well as O &
M expenses incurred by KSIDC directly through the
O&M contractor(s), if appointed for the operations

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assistance. Such expenses should not exceed beyond 5
% of the projected monthly expenses in the annual
budget approved by the Board of Directors of the
implementing agency. All exceptions in this regard have
to be cleared by the Board of directors through passing
resolution on the same.

ƒ On approval of the Board of Directors for budgeted

operating expenses for specific period, the TRA will re
the requisite amount in a current account maintained at
the Escrow Bank at the beginning of each calendar
month. The red fund would be utilized by KSIDC by
way of cheques drawn on the current account by two or
more approved Authorized Signatories of KSIDC.

ƒ Payments of Dividends to the shareholders of KSIDC

shall be approved by the Board of Directors and the
Shareholders of KSIDC. Such approved funds would be
utilized by KSIDC by way of cheques drawn on the
current account by two or more approved Authorized
Signatories of KSIDC.
• Suitable Insurance Cover would be obtained for insurable
Force Majeure Events
items/events

16.2 Operating period risk

Mitigation measures for risks during operation phase are as follows

Table 75: Operating Risk Mitigation & Framework

Risk Mitigation Framework

Operating Period Risk

KSIDC proposes to recover the O & M charges from the entrepreneurs by

way of following charges
Recovery of charges
• Charge I – Lease rentals through long term lease of developed plots
to units in the Park and rentals from MSME units for usage of Plug n
Play facility

• Charge II – Charges based on usage of the facilities like

a. Parking for trucks (both inward and outward)

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b. Weighbridge
c. Cold storage facilities
d. Dry warehouses
e. Rentals of plastic crates
• Charge II – Monthly variable Utility charges will be based on
monthly consumption of utilities such as water, effluent treatment,
steam, will be charged from the member units as per actual
consumption and on cost basis.

• Charge III – Monthly Rentals from other Facilities

The KSIDC will outsource common facilities like Parking for trucks (both
inward and outward) and other space to different agencies for providing
requisite facilities. These agencies / individuals will be charged on actual for
the facilities like water, electricity utilized by them.

KSIDC shall enter into an Agreement with the units. The Agreement shall
provide rights to the units for setting up food processing facilities in the park.
The Agreement shall also contractually bind the Industrial Units to pay all
such charges as may be levied by KSIDC for the allotment, development and
maintenance of infrastructure assets and provide recourse by way of rights to
replace units that have defaulted in respect of payments to the KSIDC or
which do not commence operations within a given time period.

The agreement would provide for re-possession of the factory shed / plot by
KSIDC in the event a unit does not commence production within a given
Units do not commence time period or such time may be extended by KSIDC.
production

The Park will enter into suitable O & M contracts for the operation and
maintenance of Project assets.
O & M risks

Availability of skilled manpower in the project area is an element with

moderate risk. To address this requirement, KSIDC shall take necessary
Availability of
steps to organize training programs for unskilled manpower. The training
manpower
programs shall be designed and undertaken in consultation with professional
agencies having requisite competency.

If any unit commits breach of the agreement and fails to pay the Charges,
the Licensor would be entitled to terminate the Agreement and take the
following steps:

Breach of agreement by • The Lessee shall, without any notice, be entitled to enter upon the
the Units Plot of the Land and / or Work shed given on and license basis
(“Demised Premises”) and / or evict the member from the Demised
Premises and take possessions of the same.
• The Lessee shall have the right to stop and cease provision on any or
all of the utilities like power and water to the Demised premises and
/ or take other such actions at its sole discretions.

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• In addition to the member’s rights provided in Clause (A)
hereinabove , the member shall also be entitled to recover from the
Lessee and the Lessee shall be bound to pay to KSIDC the following
amounts:
o The cost incurred toward repair and maintenance of the
Demised Premises to render and maintain it in good working
order and condition and all costs charges and expenses
incurred by KSIDC and in re possessing the Demised
premises and in enforcing its remedies howsoever
occasioned.
o All other sums which have become due and payable by the
Licensee under the Agreement along with interest
o Allot the Demised Premises to a third party.
 

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17 Quotation Summary Sheet

CENTRAL PROCESSING CENTER
SL Quotation received In favor
Quotation received from
No Particular on of Comments Quoted Amount
In Euros In Rs.Lakhs
Quotations are all inclusive of
1 Cold Storage 23-Jul-15 RINAC India Limited KSIDC 300
taxes.
2 Deep Freeze Unit Quotation are all inclusive of
23-Jul-15 RINAC India Limited KSIDC 650
taxes
09/September/2015
Quotations are not inclusive
3 Deboning & Canning Unit* and BAADER KSIDC 239282 176
of taxes.
22/September/2015
4 Quotations are not inclusive
Quality Control & Food Testing Lab 20-Jul-15 SGS India IL&FS of taxes. 325

PRIMARY PROCESSING CENTER

KSIDC Quotations are not inclusive
1 Pre-processing, Sorting & Grading 18-Sep-15 RAC Global India of taxes. 64.2
KSIDC Quotation are all inclusive of
2 Flake Ice Plant 29-Jul-15 RAC Global India taxes 173

Quotation are all inclusive of

3 Reefer Vehicles 23-Jul-15 RINAC India Limited KSIDC 40
taxes
Quotation are all inclusive of
4 Cold Storage(100 MT x 3) 03-Aug-15 RINAC India Limited KSIDC 90
taxes
Based on the quotation
received for QC & Lab for
CPC, the list of equipments
required for PPC level lab
5 Quality Control & Food Testing Lab 20-Jul-15 SGS India IL&FS have been finalised after 14.45
discussion with sea food
expert. The list of selected
equipments has been given as
Annexure.
MISCELLENOUS ASSETS

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IL&FS Rs.
1 Pallets
4200/Unit**
IL&FS Quotation are all inclusive of
2 Forklifts 16.85
taxes
Quotation are all inclusive of Rs.
3 Crates NA Nilkamal Ltd. NA
taxes 295/Unit**
* Quotations have been received in Euros. Conversion rate of 1 Euro = Rs. 76.30/- has been taken
** Per unit basis
 

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18 List of Annexure provided

SL NO PARTICULARS
Annexure I: Engineering Details
1 Master Plan
2 Road Network
3 SWD Network
4 Water Supply Network
5 Sewerage Network
6 Effluent Network
7 Treated Water Network
8 Electrical Network
9 Road Network
10 SWD & Culvert Section
11 Soil Investigation Report
12 Contour Survey
13 Bore Hole Locations
14 Chartered Engineer Certificate
Annexure II: Quotations
1 Separator
2 Filleting
3 Ice Flakes
4 Cold Storage, Deep Freezer, Reefer Vehicles
5 Crates
6 Pallets & Forklift
7 Sorting & Grading
8 QC Lab
Annexure III: Financial Statements
1 Balance Sheet FY 2011-12
2 Balance Sheet FY 2012-13
3 Balance Sheet FY 2013-14
Annexure IV
1 Land Possession Certificate
Annexure V
1 Expression of Interest from HDFC bank for term loan
Annexure VI
1 MoU between KSIDC and Matsyafed
Annexure VII
1 Government Order: Single Order Clearance
Annexure VIII
1 Lease rental basis for land, SDF, cold storage and deep freezer
Annexure IX
1 List of Documents and websites referred for secondary research
 

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Page | 179 
 
 

ANNEXURE I: ENGINEERING
DETAILS

 
 

ANNEXURE II:
PLANT & MACHINERY
QUOTATIONS

 
 

ANNEXURE III: FINANCIAL

STATEMENTS

 
 

ANNEXURE IV:
LAND POSSESSION
CERTIFICATE

 
 

ANNEXURE V
EXPRESSION OF INTEREST
FROM HDFC

 
 

ANNEXURE VI
MEMORANDUM OF
UNDERSTANDING BETWEEN
KSIDC AND MATSYAFED
FOR BACKWARD LINKAGE

 
 

ANNEXURE VII
GOVERNMENT ORDER: SINGLE
WINDOW CLEARANCE

 
 

ANNEXURE VIII
LEASE RENTAL BASIS FOR
LAND, SDF, COLD STORAGE
AND DEEP FREEZER

 
  

IL&FS Clusters undertook several stakeholder consultations for determining the rate of lease rentals
for Land and SDF sheds in the Marine Mega Food Park. Finally, after several rounds of discussions
with KSIDC and other Government organizations, it was decided that the scale of rates used by
Cochin Port Trust (CPT), a Government of India establishment may be used for calculating lease
rental basis for plots and SDF sheds. The following is the Scale of Rates published by CPT for the
duration of 01.04.2015 to 31.03.2016 with annual cumulative escalation of 2%.

(Rs./Sq. Meter per (Rs./Sq. Meter per

Licence Rate for Port Owned (Rs./Sq. Meter
Annum) Annum)
Buildings & land per Month)
2015 2016
Open Space 38.43 461.20 470.42

Godown Space 49.41 592.97 604.83

Office Space 164.71 1976.50 2016.11

The above rates may be viewed at http://www.cochinport.com/index.php?opt=est.

Land lease schedule Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11

Leased proportion 0.75 0.25 0.00 0.00 0.00 0.00 0.00
Leased Acres 34.95 11.65 0.00 0.00 0.00 0.00 0.00
Rate/ Sqm (Rs) @
2342.31 2342.31 2576.54 2834.19 3117.61 3429.37 3772.31
25% margin
Land Lease Rent
3312.90 1104.30 0.00 0.00 0.00 0.00 0.00
(Lakh Rs)
Recovery of land
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
lease rentals
Annual Lease Rentals
per Annum (% of 331.29 331.29 331.29 331.29 331.29 331.29 331.29 331.29 331.29 331.29
Lease Premium)
Lease Rentals per
110.43 110.43 110.43 110.43 110.43 110.43 110.43 110.43 110.43 110.43
Annum (Lakh Rs)
Total Proceed
331.29 441.72 441.72 441.72 441.72 441.72 441.72 441.72 441.72 441.72 110.43
(Lakh Rs)
Rate/ Sq Meter (Rs.) 234.23 234.23 234.23 234.23 234.23 234.23 234.23 234.23 234.23 234.23 58.56

Revenue from SDF Sheds

Area of SDF Sheds
2500
(Sqm)
Lease schedule for
Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15
SDFs
Leased proportion 50% 50% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Area Lease (Sqm) 1250 1250 0 0 0 0 0 0 0 0 0 0 0 0 0
Rate/ Sqm (Rs) 3513 3865 4251 4676 5144 5658 6224 6847 7531 8285 9113 10024 11027 12129 13342
Land Lease Rent
43.92 48.31 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(Lakh Rs)
Recovery of SDF
10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
lease rentals
For Sheds leased in
4.39 4.39 4.39 4.39 4.39 4.39 4.39 4.39 4.39 4.39
Year-1 (Lakh Rs)
For Sheds lease in
4.83 4.83 4.83 4.83 4.83 4.83 4.83 4.83 4.83 4.83
Year-2 (Lakh Rs)
Total Proceed
4.39 9.22 9.22 9.22 9.22 9.22 9.22 9.22 9.22 9.22 4.83 0.00 0.00 0.00 0.00
(Lakh Rs)
Rate/Sq Meter(Rs.) 175.67 368.91 368.91 368.91 368.91 368.91 368.91 368.91 368.91 368.91 193.24

 
 

Therefore it may be seen that the rates are lower than prevailing markets and there is scope for higher
income.

 
 

 
 

Cold Storage rentals for potatoes for the current year 2015 have been prevailing at Rs. 250/quintal i.e.
Rs. 2.50/Kg per month. In our revenue assumptions we have only taken Rs. 1.1/Kg for Deep Freezer
and Rs. 1.00/kg for Cold Storage.

 
 

ANNEXURE IX
LIST OF DOCUMENTS AND
WEBSITES REFERRED FOR
SECONDARY RESEARCH

 
 

LIST OF DOCUMENTS
1. Marine Fisheries Profile, Kerala, CMFRI, Cochin
2. UK Sea Food Processing Industry report
3. Chapter I : Marine Products Export Development Authority (Ministry of Commerce and
Industry), Report No. 17 of 2011-12
4. Preparation of strategy road map cum action plan for development of coastal shipping in
Kerala, Deloitte
5. Future of the Global Seafood Industry, Irish Food Board
6. An Over View of Kerala Fisheries – with Particular Emphasis on Aquaculture
7. ED78.20 Industrial Waste Abatement and Management, Asian Institute of Technology
8. Restructuring the value chain governance: the impact of food safety regime on fishery sector
of Kerala, India by Jayasekhar Somasekharan Central Plantation Crops Research Institute
9. Marine Fisheries Census, Kerala, 2010
10. Manual on energy conservation Opportunities in Seafood processing industries Kochi,
Bureau of Energy Efficiency (BEE), Ministry of Power, Government of India
11. The Seafood Industry: A Sea of Buyers Fishing for M&A Opportunities Across the Entire
Value Chain, M&A International Inc.
12. Press Release, Marine Products Exports
13. The present status of sea food pre-processing facilities in Kerala with reference to Alleppey
district Naveen Sathyan, Afsal V. V. and Joice V Thomas*. Network for Fish Quality
Management & Sustainable Fishing (NETFISH)
14. Present And Future Scenario Of Indian Marine Fisheries, Dr. P.U. Zacharia Head, Demersal
Fisheries Division CMFRI, Cochin
15. Fishery Harbor Development And Its Modernisation In Kerala

WEBSITES
1. Department of Fisheries, Government of Kerala: http://www.fisheries.kerala.gov.in/
2. Seafood exporters Association of India: http://seai.in/
3. Marine Exports Development Authority of India, Ministry of Commerce & Industry, Government of India:
http://164.100.150.120/mpeda/#