Agri Business Opportunities in Sindh Mukesh Kumar Provincial Chief SMEDA Sindh January 26, 2016 SMEDA Introduction 2 SMEDA Introduction Established through Prime Minister’s Notification in October, 1998 SMEDA is an “Autonomous Body” under the SMEDA Ordinance, 2002 3 www.smeda.org Mandate & Mission Initiate, Take, Continue, Implement & Perform Any & All Activities for Encouraging and Facilitating Growth & Development of SMEs To assist in Employment Generation and Value Addition to the National Income, through Development of the SME Sector, by helping Increase the Number, Scale and Competitiveness of SMEs 4 www.smeda.org SME Density & SMEDA Outreach Mingora 14.21% 2.18% Issues 65.26% Ghotki 17.83% Hub Provincial Offices (4) RBCs Operational (10) RBCs Vacant (15) Source: Census of Economic Establishments 2005 www.smeda.org SMEDA Provincial Office Sindh Provincial office in Karachi Regional Business Centers: Hyderabad Sukkur Larkana Dadu Ghotki RBCs are developed in collaboration with CCIs and other Business Associations etc. RBCs Provide Guidance to New & Existing SMEs www.smeda.org Evolutionary Phases of SMEDA Phase II Nov 02 - Oct 04 Phase I Dec 98 - Oct 02 Sector Strategy Dev. & Facilitation Textile Vision 2005 Fisheries Transport HEXPO 2000 Dairy Leather Outlook Engineering Vision Mining Industries Helpdesks OTC Products Website launched Training Services Publications Research, Cluster Dev. Outreach & BDS Research Studies (WB, ADB, ILO) Cluster Dev. For : • Bangles • Auto Vendors • Ginning • Power Looms • Ceramic • Agri-business • Cutlery • Leather Garments Outreach – RBCs Shell Tameer Business Dev. Services (BDS) Phase III Nov 04 - Jun 06 Sect. Strategy BDS & Facilitation PISDAC • Dairy • Marble & Granite • Gems & Jewelry • Furniture • Surgical • Hunting & Sporting Arms Ind. Info. Network Info. Resource Centre AHAN Women Info. Network CFCs ISP –Textiles BDS Phase IV Jul 06 – Dec 12 Project Impl. Sect. Strategy, Policy & BDS Public Sector Dev. Programme SME Policy 2007 ICA • Baseline Survey Sector Strategy Development for: • Leather • Sports Goods ISP – Auto sector, Energy Efficiency Southern Punjab Projects 7 Business Dev. Service Phase V Jan 13 - onwards 5 Years SME Development Plan & PM Youth Initiative 13 Sector Dev. Plans Improving Policy & Regulatory Environ. Developing Entre. Ecosystem PM’s Youth Dev. Initiatives • PMYBL • HR & Skills Dev. Intr’l Dev. Partners • ERKF • IPU Industry Support through: • JICA, (Auto) • Giz, Bfz (Energy & Productivity) Implem. Of 5 Yr. SME Dev. Plan • PCI – Value Addition through Cluster Dev. PSDP Projects BDS. Support Operational Strategy Building a Conducive Environment Proposing and facilitating changes in Policy and Regulatory Environment Reducing the Cost of Doing Business Facilitating Government-SME Interface Developing Sectors and Clusters Sector Strategies Development and Implementation Cluster Development Common Facility Centers (CFCs) Provision and Facilitation of Services 8 Investment Facilitation (Helpdesk, Pre-feasibilities, Business Plans etc.) Technical services, Training, Finance, Business Information, Marketing, and legal support Productivity and Competitiveness Improvement www.smeda.org Categories of Support SECTOR DEVELOPMENT STRATEGIES SUPPORT OVER THE COUNTER PRODUCTS & SERVICES LEGAL ADVICE & SUPPORT HRD SUPPORT TO SMEs RESEARCH & POLICY SUPPORT COMMON FACILITY CENTERS INDUSTRY SUPPORT – PRODUCTION EFFICIENCY IMPROVEMENT ASSISTANCE IN ACCESS TO FINANCE 9 www.smeda.org SMEDA’s Key Achievements (1998-2015) 10 Key Achievements Over 91,311 walk-in SMEs facilitated 356 Business Plans prepared • SMEDA Web Portal Total number of Visitors: 9.95 Million Avg. Visitors per day: 2,476 Development & Downloads of: 170 Pre-feasibility Studies – 2.26 Million Downloads 54 Regulatory Procedures – 353,331 Downloads 319 Commercial Contracts – 106,966 Downloads Sector Briefs / Sectoral Information – 24,303 Downloads SMEDA Accounting Package (SMAP) – 30,793 2,335 training programs organized with 100,290 participants Investment facilitation of over Rs. 28 billion 11 Industry Support to over 495 firms www.smeda.org Key Achievements Projects with International Development Partners: Economic Revitalization of Khyber Pakhtunkhwa and FATA - Multi Donors Trust Fund (MDTF) Early Recovery & Restoration of Flood Affected Communities - UNDP Investment Promotion Unit (IPU) – UNIDO/Italian Govt. 28 Sector Strategies developed and updated Demonstration Projects undertaken through PSDP Funding (27) 12 www.smeda.org Key Achievements Prime Minister’s Youth Business Loan Scheme Information Resources and tools developed: – 85 Pre-feasibility Studies developed (Also translated into Urdu) – Financial Calculators - 4 – Training Video Documentaries - 7 Over 14.31 million downloads of information Resources & Tools Over 23,167 walk-in loan applicants facilitated at SMEDA Helpdesks SMEDA’s Media Participation – 29 programs Training to Partner Organizations – 6 Training Provided - 294 participants from 38 cities Capacity building support to 21 organizations for prefeasibility development, helpdesk operations and website revamp 60 new Pre-feasibilities developed by Ministries / Organizations 17 Websites of MoIP and its Organizations revamped to cater for the requirements of PMYBL Beneficiaries 13 www.smeda.org Key Achievements Research, Policy & Publications 14 SME Policy 2007 SME Development Report 2008-10 SME Baseline Survey 2009 SME Genesis, Challenges & Prospects SME Development Report 2007-08 in Urdu SMEDA: Journey Through The Decade-An Organizational Biography SMEDA Research Journal SMEDA Research Report Series New Framework for Cluster Development SMEDA Newsletter – Quarterly SME Observer – Quarterly (Over 75 Research articles published) Intellectual Property Rights Series (5 WIPO’s Booklets) Investment Guides – Balochistan, Punjab and KPK Secrets of E-Commerce - A Guide for Small & Medium Entrepreneurs Trade Secrets – The Export Answer Book for SME Exporters Trade in Services – An Answer Book for SME Exporters How to Approach Banks SMEDA Annual Reports www.smeda.org Accounting Handbook for SMEs Development Partners Multilateral Donors • Asian Development Bank – – • – – Cluster Development Program Investment Promotion Unit ILO – • Pro-Gole Early Recovery UNIDO – – • Pakistan Initiative for Strategic Development and Competitiveness (PISDAC) EP- Firms ASP-RSP UNDP – – • ICA I & II • • – 15 Export Coaching Programs , Productivity Enhancement Programs , CSR for Industry ECO – • Trade Delegations CBI, Netherlands – • Investment & Trade Promotion SEHDA, Mauritius – • Energy Efficiency & Renewable Energy KOSGEB, Turkey – • Adaptation of Publications Seminars SES, GIZ, Bfz, Germany – • Senior volunteers ITC, Geneva – – • IPR publications & awareness JICA – Research Studies European Union WIPO – USAID – • • The World Bank – • SME Sector Development Program Rural Modernization Project International Agencies Proposals & Conferences D-8 Seminars/Conferences www.smeda.org Collaboration with International Development Partners On-Going Initiatives Energy Efficiency Management Project – JICA, GiZ, Bfz Biomass Gasification Technologies - UNIDO Senior Experts Services Program - SES, Germany Knowledge Sharing Program (KSP) – Republic of Korea New Initiatives Technical Support to Auto Parts Manufacturing Industry of Pakistan – JICA Strengthening CFCs & Establishing ICT Business Incubation Center – KOICA 16 www.smeda.org Collaboration with International Development Partners On-Going Initiatives Investment Promotion Unit – UNIDO Feasibility Study prepared on Establishing Credit Guarantee Fund for SMEs Consultative workshops with key stakeholders organized in April & May 2015 SPX Program - Joint Project of UNIDO and SMX SMEDA expected to be operational from July 2015 28 Investment Profiles developed & Uploaded on UNIDO ITPO Network 4 Training Programs conducted by international Trainers, where 130 staff from Partner Organizations participated Facilitated B2B for Pakistani trade delegation in “EIMA 2014”- The largest Italian show of Agri & Food Processing Machinery Facilitated B2B Pakistani trade delegation in “ECOMONDO 2014”, the waste management & Technologies Fair Facilitated B2B Pakistani trade delegation in “MACFRUT 2014”, the Fruit & Vegetable Processing & Technologies Fair 17 www.smeda.org Future Outlook SME Development Plan (2013-18) 18 SMEs and Government Priorities Focus on Infrastructure, Governance and Conducive Regulatory Regimes for Industrial Sector Vision 2025 approach paper highlights “SME sector has huge potential and need more focus not directly supporting but indirect policy interventions... This would require the establishment of Common Facilities Centres (CFCs) that would enable smallscale industries to improve value-added production and quality control facilities”. cont… 19 www.smeda.org Proposed Intervention Model Developing Entrepreneurial Ecosystem Sectoral Development SME Sector Punjab 20 Sindh Balochistan Khyber Pakhtunkhwa FATA Azad Jammu Gilgit&www.smeda.org Kashmir Baltistan SMEDA’s SME Development Plan Regional Strategic Thrust Plans Region/ Gems & Dairy & Fisheries Light Logis. ICT Hort. Energy Const Leather Textile Mineral Tour Sector Jewelry livestock (Marine) Engg. Punjab Sindh KPK Bal. GB AJK FATA Total 6 3 6 7 5 3 4 2 3 3 2 7 3 Complete Value Chain Analysis & Identification of Interventions across Sectors 21 www.smeda.org Development Projects - Objectives • SMEDA initiated a set of development projects in various SME clusters to: Catalyze induction of new technologies in private sector through on ground demonstration Extend common facilities such as design and prototype development to SMEs Safeguard and enhance exports amidst increasing global competition • Projects planned in close consultation with private sector (Chambers / Associations) • Implementation of majority of the Projects being overseen by Boards of Management led by private sector Cont… 22 www.smeda.org SMEDA’s PSDP Portfolio (Since 2006) PKR Million Completed Projects (11) 1,464.48 Operational/ Under Execution Projects (05) 852.20 Non funded / closed Projects (11) 456.29 Total (27 projects) 2,772.97 Contribution by Private Sector & Provincial Govt. 1,047.15 Total Portfolio PKR 3.82 Billion Cont… 23 www.smeda.org Interventions 1 Government Priorities Revival of Hyderabad Leather • Value addition Footwear Centre, Hyderabad • Common Facility Center Cost (Rs. Mil) 58.89 Glass product Design and 2 Manufacturing Centre, Hyderabad • Value addition • Common Facility Center 59.27 Women Business Incubation 3 Center - Karachi • Women Entrepreneurship Dev. • Common Facility Center 58.84 • Agriculture Sector Dev. Red Chilies Processing Centre, 4 • Technology Up-gradation Kunri • Common Facility Center 244.70 www.smeda.orgcont… Interventions 1 2 3 4 Introduction of 10 Mid-sized Fiber Re-inforced Pastic • (FRP) Vessels at Korangi Fish • Harbour Mango Processing & Pulping • at Tando Allayar/ Mirpur • Khas • • Vegetable Dehydration at • Noshero Feroz/ Nawabshah • Rice Mills Up-gradation in • Upper Sindh to increase • Processing Profitability Government Priorities Fisheries Sector Dev. Technology up-gradation Horticulture Sector Dev. Common Facility Center Technology up-gradation Horticulture Sector Dev. Common Facility Center Technology up-gradation Agriculture Sector Dev. Technology up-gradation Establishment of 02 REACH • Leather Sector Dev. 5 testing Labs at Karachi & • Exports Sialkot • Common Facility Center Indicative Cost (Rs mil) 350.00 500.00 400.00 450.00 279.50 www.smeda.orgcont… SME Definition (Current) SME Policy 2007 Enterprise Category Employment Size Paid Up Capital Annual Sales SME Up to 250 Up to Rs. 25 Million Up to Rs. 250 Million State Bank of Pakistan Enterprise SE* ME* Employment Size Up to 20 21-250 (Manu. & Service MEs) 21- 50 (Trading MEs) Annual Sales Turnover Up to Rs. 75 million Above Rs. 75 million and up to Rs 400 million * Business entity that meets both parameters Other Organizations have also developed their own SME definitions, as per26requirement www.smeda.org Agro Food Processing Progress/Impact Italian machinery installed and commercial processing started after successful trial production Centre inaugurated by Honorable PM of Pak. on Aug 25, 2009 AFP Produce certified by Euro Fins and HACCP Certified Total Fruit & Vegetable Processing - 8,642.10 Tons Seasonal processing of mango resulted in Value addition of atleast Rs.30/kg and a total Value Addition of Rs. 300 million Milestone of processing 200 tons of fruit in a single day in 2014 achieved First time exports of Citrus to Russian States and Mango Pulp to Libya Direct employment generation for 36 persons as full time and more than 200 as contractual basis. 2 other food-processing plants have been established by the private sector entrepreneurs in Multan Indirect employment opportunities in allied industries including transportation, packing (wooden crates, drums etc.) Consultancy services to local growers and processors by conducting seminars/meeting and training sessions. Help farmers and processors to go for value addition especially for Mango crop. www.smeda.org New Pre-Feasibilities in Agro Processing, Livestock & Food Sector for Small Scale Investment (2014-15) • • • • • • • • • • • • Cut Flower Farm - Gladiolus, Marigold, Statice and Chrysanthemum Off Season Vegetables - High tunnel Off Season Vegetables - Low tunnel Calf Fattening Farm Camel Farming Dairy Farm Goat Fattening Farm Inland Fish Farming Layer Farming - 5000 Birds Meat Shop - Mutton and Beef Poultry Farm Sheep Fattening Farm www.smeda.org New Pre-feasibilities in Agro Processing, Livestock & Food Sector for Small Scale Investment (2014-15) • • • • • • • • • • • • Shrimp Farming Veterinary Clinic Fodder Production & Trading Company Fruit Grading & Packing Honey Production, Processing, Packaging & Marketing Pickle Production, Processing, Packaging & Marketing Rose Water Seed Oil Extraction Unit - Rape Seed Spices Processing, Packing & Marketing Bakery & Confectionery Catering & Decorating Services Restaurant Cum Fast Food www.smeda.org Standard Pre-feasibilities in Agro Processing, Livestock & Food Sector • • • • • • • • • • • • • • • • • • • Agriculture Cut Flower Farm (Rose) Green/Poly House Farm (Export of Fresh Cut Roses) [August- 2015] Off-season Vegetables Farming (Low Tunnel) [Feb-2012] Off-season Vegetables Farming (Walk-in Tunnel) [April-2012] Seed Processing Unit (Wheat & Rice) Off-season Vegetables Farming (High Tunnel) [April-2012] Animal Feed Mill Maize Starch and Related Products Aloe Vera Processing Rose Water Fodder Production & Trading Cut Flower Farm (Gladiolus, Marigold, Statice and Chrysanthemum) Seed Oil Extraction Unit [Jan-2012] Olive Cultivation (Fruit Only) [Dec-2011] Refined Guar Split [Feb-2012] Seed Processing Unit (Wheat & Rice) [Sep-2014] Grapes Farm [Feb- 2015] Strawberry Cultivation [July-2015] www.smeda.org Standard Pre-feasibilities in Agro Processing, Livestock & Food Sector • • • • • • • • • • • • • • Live Stock Environment Controlled Layer Farm - 30,000 Birds [Mar-2012] Calf Fattening Farm Poultry Farm (7,500 Broiler Birds) Livestock Semen Production Unit (Cattle & Buffalo) Layer Farming (10000 Birds) [June-2013] Semi Intensive Sheep Farm [May-2011] Environmental Controlled Poultry Farm (30,000 Birds) [Mar-2012] Poultry Breeder Farm Sheep fattening farm Quail Breeder Farm & Hatchery Farming [Feb-2012] Intensive Goat Breeding Environmentally Controlled Poultry Farm (60,000 birds) Camel Farming (Aug-2012) www.smeda.org Standard Pre-feasibilities in Agro Processing, Livestock & Food Sector • • • • • • • • • • • • • • • • • • • Agriculture Cut Flower Farm (Rose) Green/Poly House Farm (Export of Fresh Cut Roses) [August- 2015] Off-season Vegetables Farming (Low Tunnel) [Feb-2012] Off-season Vegetables Farming (Walk-in Tunnel) [April-2012] Seed Processing Unit (Wheat & Rice) Off-season Vegetables Farming (High Tunnel) [April-2012] Animal Feed Mill Maize Starch and Related Products Aloe Vera Processing Rose Water Fodder Production & Trading Cut Flower Farm (Gladiolus, Marigold, Statice and Chrysanthemum) Seed Oil Extraction Unit [Jan-2012] Olive Cultivation (Fruit Only) [Dec-2011] Refined Guar Split [Feb-2012] Seed Processing Unit (Wheat & Rice) [Sep-2014] Grapes Farm [Feb- 2015] Strawberry Cultivation [July-2015] www.smeda.org Standard Pre-feasibilities in Agro Processing, Livestock & Food Sector Fisheries • Shrimp Farming • Commercial Fishing Trawler • Sea Food Processing Plant • Net Manufacturing Unit • Fiber Glass Boat • Inland Fish Farming [Mar-2011] • Dairy • Dairy Farm (25 Animal) • Environmentally Controlled Dairy Farm (50 American Cows) • Dairy Farm (100 Animals) www.smeda.org Standard Pre-feasibilities in Agro Processing, Livestock & Food Sector Food Rice Husking & Polishing Unit [April-2015] Slaughter house [Nov-2014] Fresh Fruits Processing Unit (Mango, Citrus & Apple) [Sep-2014] Kinnow Processing Unit Milk Pasteurizing Unit [Jun-2011] Tomato Paste and Fruit Pulp Ice Plant (15 tons) Ice Plant (30 tons) Ice Plant (50 tons) Tea Company Bakery & Confectionery [Feb-2015] Hard Candy Manufacturing Fresh Fruits Processing Unit(Mango, Citrus & Apple) [Sep-2014] Parboiled Rice Plant Canned Food www.smeda.org -Continued • • • • • • • • • • • • • • • • • • • • Potato Chips Manufacturing Unit Dehydration Plant [Sep-2011] Fast Food Restaurant Spices Processing, Packing & Marketing Pickle Production, Processing, Packaging & Marketing Soft Candy Honey Processing Dates Processing Plant Apple Processing Unit Sausage Production Unit Raisin Production Unit Flour Mill [Jan-2011] Mini Flour Mill [Jan-2011] Meat Shop (Mutton and Beef) [Jan-2012] Ice Cream & Juice Parlor [June-2015] Mineral Water Distribution Model [June-2015] Mineral Water Processing Unit [may-2015] Mineral Water Smart Shop [June-2015] Rice Husking & Polishing Unit [April-2015] Home Made Food Products (Pizza & Cakes) [Oct-2015] www.smeda.org SEDF Approved Projects (Feasibilities prepared by SMEDA) Serial # 1 Sector Fruit Pulping Plant M/s Farooq Pakages Project Name Contact person Mr. Muneer Ahmed Godil 2 Rice Mill M/s Haq Bahu Sultan Rice Mill Mr. Khadim Hussain Channa 3 Rice Mill M/s Halal Rice Mill Mr. Sarfaraz Jamali 4 Poultry ECH Poultry Farm Mr. Fahad Ghaffar Soomro Contact details 1st floor, Sheikh Arif Buliding, Daryalal Street, Jodia Bazar, Karachi. Contact# (0333-2104093-4) P.P.L road, Kashmore, Sindh. Contact # (0333-7361915) Halal Rice Mill, Ghari khero,Jacobabad, Sindh. Contact # (0300-5260042) shop # 46, Bismillah Square, Poultry Market, Latifabad#7, Taluka Nasarpur, Hyderabad,Sindh. Contact# (03002273832) 5 Poultry Poultry Man Mr. Liaquat Ali Malik 6 poultry AMSKA Environmetally Controlled Poulty Farm Mr. Mustafa Kamal Kazi 7 Rice Mill M/s Meskay & Femtee (Pvt)Ltd Mr. Teka Mal 8 Rice Mill M/s Leghari Rice Mills Mr. Razzaq Ahmed Laghari 9 Rice Mill M/S Israr Rice Mills Mr. Israr Ahmed Plot# 12 Sector 15, Korangi Industrial Area, Karachi. Contact # (0300-82395884) Deh Kalu Kahar, Thana Bola Khan, District Jamshoro. Contact# (0300-8258640) Suite#708, 7th floor, Progressive Plaza, PIDC Karachi. Contact # (0300-8208034) Village Raees Ghulam Gadir Laghari,P.O, Sita Road, Dadu. Contact# (0345-2434304) Khosa House Kashmore. Contact# (0333-3011463) www.smeda.org Summary of Investment Facilitation & Capital Asset Formation For the Period October 1998 to June 2015 Sector Construction 1998-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-2015 225 - - - - Petrol Pump & CNG Station 1,107 31 - - - Fisheries, Livestock & Dairy 610 25 400 499 106 Textile 150 - - 487 285 Auto & Engineering Parts 228 - - - - Food, Agriculture & Flower 555 105 161 192 503 3,590 - - - - 245 - 111 28 158 104 37 6,710 161 672 1,206 1,052 1,543 1,043 Transport Services & Other sector Total 21 Total 246 1,138 424 728 107 63 2,899 985 228 1,015 194 24 2,749 3,590 683 131 www.smeda.org 12,387 SMEDA Training Services • Vision To enhance access to sustained and high value training services for growth & development of SMEs. • Mission To facilitate delivery & provision of affordable, appropriate and effective SME training services through training service providers. 38 www.smeda.org SMEDA Training Services HRD Cycle Training Plan TNA Feedback Evaluation Identify TSP Develop Training Material Execute Training Advertise Program 39 www.smeda.org Major Areas Focused for HRD of SMEs • Management – Entrepreneurship, Small Business Management – Marketing, SME Financing, Taxation • Technical – Compliance, 7 QC Tools, 5S & Kaizen – Quality Foundry Practices • Agri Business, Livestock & Dairy – Tunnel Farming – Dairy Farm Management 40 www.smeda.org SMEDA & TSP Partnerships • • • • • • • • • • • • • Directorate General Training & Research (FBR) Institute of Business Administration (IBA) Women Development Department, GoS Sports & Youth Affairs Department, GoS Pakistan Association of Printing & Graphic Arts Industry (PAPGAI) Intellectual Property Organization (IPO), GoP Quality & Productivity Society of Pakistan (QPSP) PIQC Institute of Quality Shell Tameer Program Association of Certified Chartered Accountants (ACCA) Income Tax Bar Association Pakistan Dairy Development Company (PDDC) Various Chambers of Commerce & Associations 41 www.smeda.org Training Services Data 2001-2015 Total Programs Conducted Overall in Pakistan (July 2001-June 2015) Number of Participants Trained in Pakistan 2,332 103,661 Total Programs Conducted in Sindh Region (July 2001-June 2015) Number of Participants Trained in Sindh Region 690 31,094 42 www.smeda.org Thank You Contact Details Regional Office Sindh 5th Floor Bahria Complex 2 M.T. Khan Road Karachi UAN 111-111-456 Email: helpdesk.sindh@smeda.org.pk www.smeda.org