The abode of gods



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Himachal Pradesh

THE ABODE OF GODS

For updated information, please visit www.ibef.org

AUGUST


2012

THE ABODE OF GODS

Contents

  • Himachal Pradesh – An

  • Introduction
  • Infrastructure Status
  • Business Opportunities
  • Doing Business in Himachal Pradesh
  • State Acts & Policies

For updated information, please visit www.ibef.org

Himachal Pradesh

AUGUST

2012

    • Being a sub-Himalayan state, Himachal Pradesh has a varied climate that changes with altitude. The climate ranges from warm and sub-humid tropical at low altitudes to cold and icy at high altitudes. There are three main seasons: winter from October to March, summer from April to June and rainy from July to September.
    • Himachal Pradesh is located in the Northern region of India. The state is surrounded by Jammu & Kashmir on the North, Punjab on the West and the South-West, Haryana on the South, Uttar Pradesh on the South-East and China on the East.
    • The common languages spoken are Hindi, Pahari, and Punjabi.


Parameters

Himachal Pradesh

Capital

Shimla

Geographical area (sq km)

55,673

Administrative districts (No)

12

Population density (persons per sq km)*

123

Total population (million)*

6.85

 Male population (million)*

3.47

 Female population (million)*

3.38

Sex ratio (females per 1,000 males)*

974

Literacy rate (%)*

83.8

Himachal Pradesh

THE ABODE OF GODS



Sources: Government of Himachal Pradesh Website, www.himachal.nic.in,

*Provisional Data – Census 2011

For updated information, please visit www.ibef.org

HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh Factfile

AUGUST


2012

Source: Maps of India

Parameter

Himachal Pradesh

All-States

Source

Economy

GSDP as a percentage of all states’ GSDP

0.7

100

CMIE, 2010-11, current prices

Average GSDP growth rate (%)*

13.8

15.9

CMIE, 2004-05 to 2010-11, current prices

Per capita GSDP (US$)

1,599.8

1,324.3

CMIE, 2010-11, current prices

Physical Infrastructure

Installed power capacity (MW)

3,584.9

199,627.0

Central Electricity Authority, as of March 2012

Wireless subscribers (No)

7,846,717

903,727,208

Telecom Regulatory Authority of India, as of January 2012

Broadband subscribers (No)

81,480

13,350,938

Ministry of Communications & Information Technology, as of December 2011

National Highway length (km)

1,409

71,772

Ministry of Road Transport & Highways, Annual Report 2011-12

Airports (No)

3

133

Airport Authority of India

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Himachal Pradesh in Figures … (1/2)

*Calculated in Indian Rupee Terms

HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh

AUGUST

2012


Parameter

Himachal Pradesh

All-States

Source

Social Indicators

Literacy rate (%)

83.8

74.0

Provisional Data – Census 2011

Birth rate (per 1,000 population)

16.9

22.1

SRS Bulletin (www.censusindia.gov.in), 2011

Investment

FDI equity inflows (US$ billion)

1.0*

160.0

Department of Industrial Policy & Promotion, April 2000 to January 2012

Outstanding investments (US$ billion)

70.9

11,318.3

CMIE (2011-12)

Industrial Infrastructure

PPP projects (No)

1

881

www.pppindiadatabase.com

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Himachal Pradesh in Figures … (2/2)

*Including Chandigarh, Punjab and Haryana

PPP: Public Private Partnership; SRS: Sample Registration System

HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh

AUGUST


2012

Advantage Himachal Pradesh … (1/2)

THE ABODE OF GODS

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The state offers a wide range of policy and fiscal incentives for businesses under the Industrial Policy, 2004. Additionally, the state has well-drafted sector-specific policies for biotechnology and IT.

Policy and Fiscal Incentives

The state has a large base of skilled labour, making it a favourable destination for knowledge-based sectors. Further, the state has a large pool of semi-skilled and unskilled labour.

Rich Labour Pool

Himachal Pradesh has attracted investments in the pharmaceuticals, IT and engineering industries. Agriculture also plays a significant role in the state’s economy. The state has a robust food processing sector.

Pharmaceuticals and Food Processing Hub

HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh

AUGUST

2012


Advantage Himachal Pradesh … (2/2)

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The state has well-developed social, physical and industrial infrastructure and virtual connectivity. It has a strong hydro-power base because of its water resources and topography. It is supported by enabling policies.

Facilitating Infrastructure

State’s average GSDP (current prices) growth rate between 2004-05 and 2010-11 was about 13.7 per cent.

High Economic Growth

The state has a stable political environment with a single-party government. The State Government is committed towards creating a progressive business environment.

Stable Political Environment

HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh

AUGUST


2012

Economic Snapshot – GSDP


    • In 2010-11, Himachal Pradesh’s Gross State Domestic Product (GSDP) at current prices was US$ 11.5 billion.
    • Himachal Pradesh’s GSDP grew at a CAGR (Compound Annual Growth Rate) of 13.7 per cent between 2004-05 and 2010-11.

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HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh

CAGR

13.7%


US$ billion

Source: CMIE

Himachal Pradesh’s GSDP

AUGUST

2012

    • The Net State Domestic Product (NSDP) of Himachal Pradesh was about US$ 9.2 billion in 2010-11.
    • The average NSDP growth rate between 2004-05 and 2010-11, was about 11.8 per cent.


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Economic Snapshot – NSDP

HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh

CAGR


11.8%

US$ billion



Source: CMIE

Himachal Pradesh’s NSDP

AUGUST

2012


Economic Snapshot – Per Capita GSDP
    • The state’s per capita GSDP in 2010-11 was US$ 1,599.8 as compared to US$ 823.1 in 2004-05.
    • The per capita GSDP increased at a CAGR of 11.7 per cent between 2004-05 and 2010-11.

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US$

HIMACHAL PRADESH – AN INTRODUCTION



Himachal Pradesh

CAGR


11.7%

Source: CMIE

Per Capita GSDP

AUGUST

2012


Economic Snapshot – Per Capita NSDP
    • The state’s per capita NSDP in 2010-11 was US$ 1,283.5 as compared to US$ 724.4 in 2004-05.
    • The per capita NSDP increased at a CAGR of 10 per cent between 2004-05 and 2010-11.

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HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh

CAGR

10%


Source: CMIE

Per Capita NSDP

US$

AUGUST


2012

Economic Snapshot – Percentage Distribution of GSDP

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    • In 2010-11, the secondary sector contributed 38.9 per cent to the state’s GSDP at current prices, followed by tertiary sector (38.2 per cent) and primary sector (22.9 per cent).
    • Community and personal services are the primary constituents of the state’s tertiary sector.
    • In terms of share within the primary sector, agriculture continues to hold a significant share in the state economy.
    • At a CAGR of 14.9 per cent, the tertiary sector has been the fastest growing sector among the three sectors from 2004-05 to 2010-11.
    • The secondary sector grew at a CAGR of 14.2 per cent between 2004-05 and 2010-11.

HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh



Source: CMIE

Percentage Distribution of GSDP

CAGR

11.6%


14.2%

14.9%


AUGUST

2012

    • In 2011-12, the total food grains production in the state was estimated at 1.5 million tonnes.
    • Maize was the major crop among the food grains, followed by wheat and rice.
    • The state has a prominent horticulture industry. Apple production stood at 275,030 tonnes in 2011-12 (as of December 2011) and accounted for approximately 83 per cent of the state’s total fruit production.
    • Other major fruits grown in the state include peach, apricot, cherry, mango and litchi.
    • Vegetables production in the state was estimated at 1.3 million tonnes in 2011-12.


Crop

Annual Production (Estimated) – 2011-12

(‘000 tonnes)



Vegetables

1,300

Maize

694

Wheat

690

Fruit

328*

Potato

180

Rice

106

Pulses

16

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Economic Snapshot – Agricultural Production

Source: Economic Survey of Himachal Pradesh 2011-12

*As of December 2011

HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh

AUGUST

2012


Economic Snapshot – FDI Inflows &

Investments

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    • According to the Department of Industrial Policy & Promotion, the cumulative FDI inflows from April 2000 to January 2012 amounted to US$ 1,068 million*.
    • Himachal Pradesh had outstanding investments of US$ 70.9 billion in 2011-12.
    • The bulk of the investments were in the electricity (64.7 per cent) and services (14.0 per cent) sectors.

Break up of Outstanding Investments by Sector (2011-12)

HIMACHAL PRADESH – AN INTRODUCTION

Himachal Pradesh

*Including Chandigarh, Punjab and Haryana



Source: CMIE

AUGUST


2012

THE ABODE OF GODS

Contents

  • Himachal Pradesh – An

  • Introduction
  • Infrastructure Status
  • Business Opportunities
  • Doing Business in Himachal Pradesh
  • State Acts & Policies

For updated information, please visit www.ibef.org

Himachal Pradesh

AUGUST

2012

    • Since much of the state is hilly, roads play a vital role in transportation.
    • The state had total road length of 34,000 km as of December 2011.
    • The National Highways length of the state was about 1,409 km as of March 2012.
    • Roads have been assigned a high priority by the Government of Himachal Pradesh. In 2011-12, the government outlay for road development and related activities was US$ 137 million.
    • As of December 2011, 9,709 villages were connected with roads in the state.


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INFRASTRUCTURE STATUS

Physical Infrastructure – Roads

Himachal Pradesh

Source: Maps of India

Sources: Economic Survey of Himachal Pradesh 2011-12

Ministry of Road Transport & Highways, Annual Report 2011-12

AUGUST

2012

    • Himachal Pradesh falls under the Northern Railways network.
    • As of March 2011, Himachal Pradesh had a total railway route length of 296 Km.
    • Two narrow gauge lines connect Kalka with Shimla and Joginder Nagar with Pathankot; with a route length of 96 km and 113 km, respectively.
    • A 33 km broad-gauge line connects the Nangal Dam to Charuru.


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INFRASTRUCTURE STATUS

Source: Maps of India

Himachal Pradesh

Physical Infrastructure – Railways

Source: Economic Survey of Himachal Pradesh 2011-12

AUGUST


2012
    • There are three airports – at Kullu (Bhuntar), Kangra (Gaggal) and Shimla (Jubbar Hatti).
    • In addition, there are 57 operational helipads and another 12 new helipads are being planned.
    • An airport has been proposed for Sunder Nagar, to match international standards (which can accommodate landing of an Airbus A-320 or a Boeing 747 aircraft).
    • Night landing facilities are proposed to be given for all the three existing airports.

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INFRASTRUCTURE STATUS

Himachal Pradesh

Domestic airport

Physical Infrastructure – Airports

AUGUST

2012


Physical Infrastructure – Power … (1/2)

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INFRASTRUCTURE STATUS


    • In 2011-12, the state had a power generation installed capacity of 3,584.9 MW.
    • Himachal Pradesh is naturally suited for hydro-power generation and accounts for around 27 per cent of India’s total hydro-power potential.
    • The state has a high level of village electrification; about 17,466 of 17,495 villages had been electrified by the end of February 2012.
    • In order to provide electricity to all the households in the state, under the Rajiv Gandhi Gramin Vidyutikaran Yojna (RGGVY) scheme, an amount of US$ 75 million has been sanctioned.

Installed Power Capacity (MW)

Source: Central Electricity Authority

Himachal Pradesh

AUGUST

2012


Physical Infrastructure – Power … (2/2)

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INFRASTRUCTURE STATUS


    • State-owned power generation in Himachal Pradesh is managed by the Himachal Pradesh Power Corporation Limited (HPPCL).
    • Power transmission is overseen by the Himachal Pradesh Power Transmission Corporation Limited.
    • Himachal Pradesh’s power sector was ranked seventh in the country by the State Power Sector Performance Ratings study conducted by the Power Ministry of India in 2006.
    • It is one of the few states in India where power delivered to consumers is 100 per cent metered and its distribution system has 97.4 per cent availability.

Himachal Pradesh

Source: Asian Development Bank report on “India, Capacity Building for Himachal Pradesh Power Sector Agencies,” November 2008

AUGUST


2012

Physical Infrastructure – Telecom

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INFRASTRUCTURE STATUS

    • According to Telecom Regulatory Authority of India (TRAI), Himachal Pradesh had nearly 7.84 million wireless subscribers and 312,308 wire-line subscribers as of January 2012.
    • The state has a high tele-density of 119.1 per cent (as of January 2012), compared to the all-India average of 77.57 per cent.
    • As of December 2011, the state had 7,206 Public Call Offices (PCOs) and 1,170 telephone exchanges.

Telecom Infrastructure (January 2012)

Wireless Subscribers

7,846,717

Wire-line Subscribers

312,308

Broadband Subscribers

81,480*

Tele-Density (in per cent)

119.1

Public Call Offices (PCOs)

7,206*

Sources: Telecom Regulatory Authority of India,

Department of Telecommunications, Annual Report 2010-11,

Ministry of Communications & Information Technology

*As of December 2011

Himachal Pradesh

Some of the Major Telecom Operators in

Himachal Pradesh



Bharat Sanchar Nigam Limited (BSNL)

Bharti Airtel

Tata Teleservices

Reliance Communications

Vodafone Essar

Aircel Limited

IDEA Cellular Services


AUGUST

2012


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INFRASTRUCTURE STATUS

Development Projects: Urban Infrastructure


    • Shimla is one of the 65 cities that have been identified under the Jawaharlal Nehru Urban Renewal Mission (JNNURM) for local infrastructure development.
    • Under JNNURM, five projects costing US$ 35.2 million have been sanctioned for Shimla.
    • The projects have been sanctioned between 2006-07 and 2011-12. The key areas of development are roads and flyovers, water supply, solid-waste management and sewerage.
    • The Government of Himachal Pradesh has constituted a state-level steering committee under the chairmanship of the Chief Minister and has nominated Himachal Pradesh Housing and Urban Development Authority (HIMUDA) as the state-level nodal agency for implementing the planned projects under JNNURM.

Sources: JNNURM, Ministry of Urban Development, www.urbanindia.nic.in; Municipal Corporation, Shimla

Himachal Pradesh

AUGUST

2012


Development Projects: Public Private Partnership Project

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INFRASTRUCTURE STATUS



Contract Authority

Project

Investment

(US$ million)



PPP Type

Stage

Roads

National Highway Authority of India

Zirakpur-Parwanoo Road

100.2

BOT -Toll

Under Construction

Himachal Pradesh
    • Himachal Pradesh has one project being implemented under the Public-Private Partnership (PPP) mode; it has a project cost of US$ 100.2 million.

Source: http://www.pppindiadatabase.com

BOT: Build-Operate-Transfer

AUGUST

2012


Social Infrastructure – Education … (1/2)

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INFRASTRUCTURE STATUS


    • The state has a literacy rate of 83.8 per cent according to the provisional data of Census 2011; the male literacy rate is 90.8 per cent and the female literacy rate is 76.6 per cent.
    • Sarva Shiksha Abhiyan, a programme to ensure universalisation of elementary education, is being implemented in the state on a priority basis.
    • The state is also planning to establish 16 new universities, in an effort to give a boost to vocational and higher education.
    • Two engineering colleges, one at Pragatinagar in Shimla district and one at Bandla in Bilaspur district and five government polytechnics one each in district; Bilaspur, Kullu, Kinnaur, Sirmaur and Lahaul & Sptiti are proposed to be opened.

Himachal Pradesh

Literacy Rates (%)

Literacy Rate

83.8

Male Literacy

90.8

Female Literacy

76.6

Source: Census 2011 (provisional data)

AUGUST


2012

Social Infrastructure – Education … (2/2)

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INFRASTRUCTURE STATUS

    • Private participation is being encouraged in technical and vocational education.
    • With the introduction of new Industrial Training Institutes/Centres (ITI/ITC), annual seats for vocational training stand at 29,164 in the state.

Sources: Economic Survey of Himachal Pradesh 2011-12,

Ministry of Human Resource Development



Himachal Pradesh Education Statistics

(As of December 2011)



Number of Schools

Primary: 10,768

Middle: 2,269

High school: 850

Senior Secondary Schools: 1,276



Pupil-Teacher Ratio (2010-11)

16:1 (all schools)

Himachal Pradesh

Educational Infrastructure
  • Engineering Colleges: 20
  • Medical Colleges: 2
  • Dental Colleges: 5
  • Polytechnics: 29
  • ITI/ITC: 200

Source: Economic Survey of Himachal Pradesh 2011-12

AUGUST


2012

Social Infrastructure – Health

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INFRASTRUCTURE STATUS

    • There are 53 Civil Hospitals, 76 Community Health Centres, 456 Primary Health Centres, 23 Civil/ESI Dispensaries and 2,065 Sub-Centres in the state.
    • The State Government has launched Himachal Health Vision 2020, to provide effective and efficient health services.

Himachal Pradesh’s Health Indicators (2010)

Birth Rate*

16.9

Death Rate*

6.9

Infant Mortality Rate**

40

Life Expectancy at Birth (years)

Male (2002-06)

66.5

Female (2002-06)

67.3

Sources: Sample Registration System (SRS) Bulletin 2011 (www.censusindia.gov.in),

Planning Commission, Government of India

*Per thousand persons

**Per thousand live births



Health Infrastructure
  • Civil Hospitals: 53
  • Community Health Centres: 76
  • Primary Health Centres: 456
  • Sub-Centres: 2,065
  • Civil/ESI Dispensaries: 23

Source: Economic Survey of Himachal Pradesh 2011-12

Himachal Pradesh

AUGUST

2012


Cultural Infrastructure

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INFRASTRUCTURE STATUS


    • The Himachal Pradesh Sports Council oversees the sports-related activities of the state.
    • The Indira Gandhi State Sports Complex provides training for judo, badminton, volleyball, gymnastics, table tennis, boxing, wrestling, and martial arts. The complex also has a fitness and an aerobics facility.
    • Adventure sports, such as river rafting, para-gliding and trekking are also popular given the climate and topography of Himachal Pradesh.
    • The key hotels in Shimla are the East Bourne & Spa, the Wildflower Hall and the Oberoi Cecil. In Dharamshala, the key hotels are the Clubhouse and the Asia Health Resorts, while the Hotel Kullu Valley, the Ambassador in Manali are the most popular hotels at Kullu-Manali.
    • Kangra Valley is considered the cultural capital of Himachal Pradesh; it is home to Dharamshala and Mcleodganj, a hub for Buddhist-Tibetan culture. The district has several Buddhist monasteries and Hindu temples.
    • The S.M. Convention Centre in Palampur, is one of the largest of its kind in the state; it has 25 rooms, five banquet halls, seminar rooms and a board room.

Himachal Pradesh

AUGUST


2012

Industrial Infrastructure … (1/2)

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INFRASTRUCTURE STATUS

Himachal Pradesh



Infrastructure

Description

Industrial Areas

Set up at Baddi, Barotiwala, Parwanoo, Kala Amb, Paonta Sahib, Mehatpur, Tahliwal, Amb, Sansarpur Terrace and Golthai etc.

Baddi Barotiwala Nalagarh

Industrial Area



The industrial area has been promoted by the Ministry of Commerce and Industries, Government of India. It has emerged as a hub for textiles, pharmaceuticals and packaging industries.

Biotechnology Park

The government has proposed to set up a biotechnology park at Nalagarh.

Nanotechnology Park

The nanotechnology park is proposed to come up on a 400-acre area near the Biotechnology Park at Aduwal near Nalagrah .

Inland Container Depot (ICD)

An ICD is being developed at Baddi for the benefit of exporting industries through Container Corporation of India. A Memorandum of Understanding (MoU) has been signed between Himachal Pradesh Government and Container Corporation of India.

AUGUST

2012


Industrial Infrastructure … (2/2)

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INFRASTRUCTURE STATUS

Himachal Pradesh

Name and Location

Primary Industry

Description

Baddi

Pharmaceuticals

/ Textiles



Located in the Solan district, the Baddi industrial area has several pharmaceutical, textile, auto ancillary, paper and printing units.

Barotiwala

Multi-Industry

Located in the Solan district; hub for small scale industries.

Parwanoo

Light Engineering

Located in the Solan district; the city is an industrial cluster for High-Density Polyethylene (HDPE) pipe companies.

Chambaghat

Electronics

Located on the Shimla-Kalka highway in the Solan district, the industrial area has prominent companies such as Himachal Futuristic Communications Limited and Shivalik Bimetal Controls Limited.

Paonta Sahib

Pharmaceuticals/ Chemicals

Located in the Sirmour district, the industrial area has a number of pharmaceutical and chemical companies.

Tahliwal and Gagret

Electronics

Located in the Una district, it has prominent telecommunications companies.

Amb Industrial Area

Engineering/Auto

Amb has prominent engineering and automotive companies such as International Cars and Motors Limited.

Sansarpur Terrace

Engineering

Located in the Kangra district, it has some of the leading engineering companies of North India.

Golthai

Multi-Industry

Located in the Bilaspur district, it has been identified as a mini growth centre.

    • In an effort to provide infrastructure support to entrepreneurs, the Himachal Pradesh Government has developed 41 industrial areas and 15 industrial estates.

AUGUST

2012


THE ABODE OF GODS

Contents

  • Himachal Pradesh – An

  • Introduction
  • Infrastructure Status
  • Business Opportunities
  • Doing Business in Himachal Pradesh
  • State Acts & Policies

For updated information, please visit www.ibef.org

Himachal Pradesh

AUGUST

2012


THE ABODE OF GODS

For updated information, please visit www.ibef.org

BUSINESS OPPORTUNITIES

Key Industries



Key Industries in Himachal Pradesh
  • Textiles
  • Pharmaceuticals
  • Food Procurement and Processing
  • Light Engineering
  • IT and Electronics
  • Cement
  • Tourism
    • The rich natural resources of the state are favourably suited for investments in major sectors such as procurement of agricultural produce, hydroelectric power, cement and tourism.
    • Himachal Pradesh has made significant achievements in the field of industrialisation in the past few years.
    • The districts of Solan, Sirmour, Kangra and Una lead in terms of investments attracted.
    • As of December 2011, there were 474 medium and large scale industries and about 38,409 small scale industries with a total investment of about US$ 2.95 billion operational in the state. These industries provide employment to about 0.26 million persons.

Himachal Pradesh

AUGUST


2012

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BUSINESS OPPORTUNITIES

Key Industries – Agro-based Industry … (1/2)

Some of the Key Players
  • Cremica Group
  • Adani Agri Fresh
  • Nestle India
  • Dabur

    • Agriculture is the main occupation and the major source of employment in the state.
    • Food processing industry is primarily focussed in the areas of traditional processing of agricultural and horticulture raw material.
    • Agri-procurement has lately been an investment area for corporate entities.
    • The area under fruit cultivation increased from 792 hectares in 1950-51 to about 211,295 hectares in 2010-11.
    • Apple is one of the most important crops in the state, constituting about 83 per cent of the total fruit production. The state produced 275,030 tonnes of apples in 2011-12 (as of December 2011).

Himachal Pradesh

AUGUST


2012

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BUSINESS OPPORTUNITIES


    • Cremica Group is a prominent player in both the Indian food retail and the food services industry. The business activities of the company include Cremica Frozen Foods, EBI Foods, Mrs Bector’s Desserts and Cremica Agro India. The company is commissioning a plant at Tahliwal Industrial Area, Una, for manufacturing biscuits and Indian snack foods. It is a 100 per cent automated facility with a monthly manufacturing capacity of 5,000 tonnes of biscuits.
    • Adani Agrifresh, a 100 per cent subsidiary of Adani Enterprises, which had consolidated revenue of US$ 5.88 billion in 2010-11, has set up three controlled-atmosphere storage units at Rewali, Sainj, and Rohru in Himachal Pradesh with an investment of US$ 40 million with a combined capacity of 18,000 metric tonnes of apples per year; involved in procurement, storage and transportation of fresh fruits and vegetables. The company is directly buying fruit from about 4,000 farmers.


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