Entrepreneurship Development Institute of India  :: Food Processing Project ::

Food Processing Project

Entrepreneurs are central to a country's economic growth and bear the onus of defining the contours of development. But entrepreneurship is rarely an automatic phenomenon. It has to be nurtured, entrepreneurs have to be developed, and a conducive environment is to be created. This entails equipping the people with entrepreneurial attitudes and skills and also building of an environment where entrepreneurship flourishes and sustains itself. The model which provides broad-based understanding on creation of enterprises is termed as the 'Entrepreneurship Development Programme' (EDP). Pioneered by EDII, it imparts knowledge on how to set up a venture and also inculcates a sense of business acumen and achievement orientation in individuals.

EDI was assigned the project to introduce and implement EDPs in six states viz., Gujarat, Maharashtra, Uttar Pradesh, Uttaranchal, Bihar and Jharkhand during 2003-04. all the eight states of north eastern region during 2004-05. ten states viz., Gujarat, Maharashtra, Uttar Pradesh, Uttaranchal, Bihar, Jharkhand, Jammu & Kashmir, Punjab, Haryana and Himachal Pradesh inthe year 2005-06. Andhra Pradesh, Karnataka, Rajasthan, Biharand Jammu & Kashmir in 2008-09. Andhra Pradesh, Karnataka, Rajasthan,Jammu & Kashmir and Bihar in 2009-10. Arunachal Pradesh, Mizoram, Nagaland, Jammu & Kashmir, Rajasthan, Assam and Meghalaya in 2010-11. Rajasthan, Jharkhand, Jammu & Kashmir, Punjab, Himacha Pradesh in 2011-12. Kerala, Assam, Karnataka, Meghalaya in 2012-13. Bihar, Himacha Pradesh in 2013-14.

A 'Fauji' all the way

Rajinder had lived a life replete with challenges that beckoned him to confront tribulations headlong. He was in the army and had learnt to take pride in the thorns that pricked him everyday in serving India. He couldn't imagine a life without feats that made his nerves freeze. He enjoyed his days packed with activities. He was used to such circumstances but even before he realized, his retirement knocked the door. Retirement set in boredom, he started rema ining irritated and appeared frenzied all the time. He wanted to do something but could not settle on something concrete. After his retirement he wasn't the same hale and hearty Rajinderthat people had known. But God knew he deserved better.

Ask Rajinder and he raises his head as if recall ing the fortunate moment when he had spotted an advertisement in a local daily on Entrepreneurship Development Programme. Rajinder remembers not having really got excited about undergoing a programme and setting up a business. He says, "I was confused butsince I wasn't into anything, I decided to give ita shot."

Little did Raj inder know that he was going to get a purpose in life. He underwent training by EDI tra ined trainers at the Regional Centre for Entrepreneurship Training in Jammu and Kashm ir. Rajinder says that everyday as he gained knowledge, his resolve soared. He had inhibitions about setting up a business and always thought he was not a cut out for it but by the end of the programme, says Rajinder, "I knew I could also be a successful businessman. I never knew that doing business could be learnt."

Hisfondness for pickles made him consider the business of manufacturing and marketing pickles. Being an ex-army man the name that fascinated him for his enterprise was Fauji and within no time Rajinder became an entrepreneur, owningthe unit, 'Fauji Pick les.' Rajinder says that applying for loan did bringin that little sense of insecurity for a moment in the garb of questions like - 'What if I fail, ' ' Am I on the right track'. But then, immediately his shakes his head to add that those fears were momentary. He credits EDI trainers for constantly monitoring his progress and helping him at the critical junctures of identifying the business opportunity and procuring loan of< 2 lacs from Jammu and Kashmir Gramin Bank. Once the loan was approved, he started his enterprise. He had been taught all about setting up and managing an enterprise and he was, therefore, sure about his business moves. His first month profit was< 5000. Although the figure wasn't very striking, Rajinder was convinced to move ahead. He focused on marketing his pickles and packing them better. He tried to take criticism in his stride and improved the product tremendously. Today after four years of starting his business, his investment in the project is to the tune of< 6 lac and his profit is close to< 45,000. But what Rajinder values over every other thingis, as he puts it, 'contentment'. He says, "I am doing well; I am happy and am enlightened enough to make realistic growth plans in a state which is fighting its own set of problems." Rajinder did face problems in marketing his product. Although he had proper planning to guide him, the state's confused state of affairs did become a major limitation. But being a f ighter all through, Rajinder decided to put up a brave fight and remained in constant touch with EDI tra iners to deal with his problems. He has now decided to market his products in a big way outside Jammu and Kashm ir, and as an immediate strategy, has his eyes set on state level exhibitions.

He is determined to grow further. As he says, "There is always an opportunity waiting for us; all we must do is keep our eyes wide open."

Where there is a will, there is a way

Lakshmi hails from a business family of Ferozepur in Punjab. Obviously he grew up seeing business as a fruitful career and, therefore, never had any doubt about the potential of business as one's profession. Rather, he had always harboured the dream of becoming a notable businessman. His father was into manufacturing ayurvedic medicines and wanted his son to join him but it is here that Lakshmi thought differently and dreamt of 'something of his own.' But what? - This question always bothered him. He did not have education in any specialized area and, therefore, finalizinga business opportunity was becoming his greatest worry.

During this time itself, through a friend, he came to know about an Entrepreneurship Development Programme on Food Processing to be conducted at Abohar. Being an out and out optimist, Lakshm i decided to give it a try. He joined the programme. Lakshmi calls it the 'best decision of his life.' Just two days later, he recalls sharing with a friend, "This opportunity is God send and I think my life will take shape from here." He regularly and with all focus attended the classes and tried to be in regular touch with his trainers. Within no time he was discussing marketing techniques, legal systems, management and financial aspects in business with his trainers. Practical training is what Lakshmi terms as exceedingly valuable for him. He learnt the skills of manufacturing world class squash, amla candy and juice, different kinds of pickles etc. This instantly agreed with his bent of mind and he decided to get into this business. He set up his unit in July 2006 under the name of M/s. Sweet and Spicy Food. From his own savings, Lakshmi pitched in around t 3 lac towards basic machinery, ingredients and renting of a shed. The growth was phenomenal and within three years, his investment rose to 20 lac. Throughout this period, Lakshm i was in constant touch with EDI trainers to whom he thoroughly owes his success. He coped with all starting crises from managing loan to making a dent in the market by strategising on the lines that he had learnt in the training. One major problem that could have deterred any other person was that of giving a standing to his products among other known brands in the market. He wanted to develop a certain credibility of his products in the eyes of the consumers. Lakshmi implemented the measures carefully and achieved his dream. No wonder, within very litt le time, his profits scaled up from t 5000 inthe first month to around t 30,000 a month.

Today Lakshm i is a happy man, doing business his way and confident enough of getting it right. Acknowledging EDI for what he is today, Lakshmi says, "Had EDI not come in the picture, I would have perhaps joined my family business and satthere without making any meaningful contribution as my soul was never into it. Today what I am doing is backed by knowledge that I have gained, it's my passion and I will go veryfarfrom here, I am sure."

"There are always reasons to celebrate, we just have to look around"

Sarang Ranade from Yavatmal, Maharashtra always wanted an identity for himself; he wanted people to know him for his qualities, determination and resolve. He remembers admiring entrepreneurs as a child and imagining himself as a known entrepreneur. Sarang was into reading a lot of biographies of entrepreneurs and was quite familiar with the charms of becoming one. Yet, despite all his inclination, he couldn't escape the clutches of parental pressure to look for a job thataccordingtothem guaranteed a secured life.

Sarangjoined Stantec Consulting Inc. and had almost given up his yearning to become an entrepreneur, when one morning, over a cup of tea, flipping over the pages of the newspaper, he spotted an advert isement of Entrepreneurship Development Programme on Food Processing. Something tickled him and rekindled his almost lost ambition. Food processing......it inte rested him immediately and reminded him of the umpteen compliments that he always received from family and friends whenever he tried a hand at his culinary skills. Sarang felt confident and decided to explore more. He immediately called the number mentioned in the advertisement and tried to know about the programme. The details interested his. He consulted his family also. They initially showed their apprehensions but Sarang convinced them to think about all the positive aspects associated with his decision.

Sarang says that from that day on he felt a bounce in his steps. Next day he applied for the training and was very soon diligently attending classes. He credits the training for his growth and motivation to move ahead despite hindrances and bouts of depression. Sarang makes a special mention about how he benefited in the areas of Business Opportunity Identification, Business Management and Market Survey, Legal Aspects, Project Report Preparation and the New Techn ologies of Production. From August 2008, Sarang 's life took a turn towards all things rosy and bright. He launched M/s. Ranade Brothers Dairy Products and Snacks that manufactured all types of Bengali and Maharashtrian Sweets, Namkeen, and Milk Products like, Shreekhand, Paneer and Khowa. Sarang managed 8 lac from own sources and 10lac as bank loan towards investment in plant and machinery. His family owned a 15 acre agricultural land in Yavatmal, which he decided to use as space for the unit. He did face problems of skilled labour and finance to procure modern advanced machinery. "Undergoing the cumbersome procedures of obtaining food licenses was also quite a task," says Sarang. But he did not lose his motivation for even one moment; he kept reminding himself how all great entrepreneurs had undergone their share of problems. Sarang also did not have good packaging technology and lacked knowledge of the market. Under direction of his trainers, he undertook a market survey and focused on improving his packaging.His hard work and perseverance paid. Today his unit employs 15 skilled and unskilled workers and his brand 'Ranade Bandhu' has started carvinga niche for itself in the market.

A profit of 15,000 in the first month of production did not deter him. He knew he was working under limitations and had strategies in place to combat these. He had learnt about calculated risks that every entrepreneur had to take at some point or the other and, therefore, thought about diversifying the business. He moved up step by step. And very soon reached 43,000 profit per month, and this upward journey has cont inued since. Today Sarang has plans in place to expand, by procuring latest machinery and technology to set up a dehydrated and instant food products unit, ice-cream manufacturingunit and also launch a restaurant. Sarang planned every move strategically under the guidance of his trainers and within a short period he has come a longway.

There is no looking back for Sarang. He says, "I couldn't have done it alone. Actually I would have never known that I had this confidence and ability to do something so big had it not been for this entrepreneurship development programme. If I am something today, I give the credit of it to my training and the trainers. There are always reasons to celebrate; we just have to look around".

Sr. No. YEAR Programme Conducted So far Trainees Trained Unit Started Total Investment Made (Rs. In Lac) Employment Generated
1 2003 - 04 100 2537 1489 5662.95 6009
2 2004 - 05 50 1260 428 345.92 1394
3 2005 - 06 100 2697 1350 3560.78 4665
4 2008 - 09 50 1345 708 2008.02 2664
5 2010 - 11 35 908 516 598.475 1377
6 2011 - 12 25 656 363 1046.60 1172
7 2012 - 13 63 1697 609 1838.24 1940
8 2013 - 14 20 559 178 685.52 620
  GRAND TOTAL 443 11100 5463 15060.99 19221
Sr. No. State Programmes Conducted Trainees Trained Unit Started Total Investment Made (Rs. In lacs) Employment Generated Success Rate %
1 BIHAR 10 279 63 408.47 399 22.58
2 HIMACHAL PRADESH 10 280 115 277.05 221 41.07
    20 559 178 685.52 620 31.84
Sr. No. State Programmes Conducted Trainees Trained Unit Started Total Investment Made (Rs. In lacs) Employment Generated Success Rate %
1 KERALA 10 267 81 166.15 221 30.34
2 ASSAM 4 120 53 21.26 91 51.96
3 KARNATAKA 20 533 289 419.57 847 54.22
4 MEGHALAYA 5 129 0 0.00 0 51.96
5 ASSAM 4 120 53 21.26 91 51.96
6 ASSAM 4 120 53 21.26 91 51.96
7 ASSAM 4 120 53 21.26 91 51.96
6 ASSAM 8 120 53 21.26 91 51.96
9 ASSAM 4 120 53 21.26 91 51.96
    20 559 178 685.52 620 31.84
Sr. No. State Programmes Conducted Trainees Trained Unit Started Total Investment Made (Rs. In lacs) Employment Generated Success Rate %
1 RAJASTHAN 5 125 67 179.35 177 53.60
2 JHARKHAND 5 145 84 198.20 174 57.93
3 JAMMU-KASHMIR 5 125 81 425.15 552 64.80
4 PUNJAB 5 125 65 78.30 90 52.00
5 HIMACHAL PRADESH 5 136 66 165.60 179 48.53
    25 656 363 1046.60 1172 55.34
Sr. No. State Programmes Conducted Trainees Trained Unit Started Total Investment Made (Rs. In lacs) Employment Generated Success Rate %
1 ARUNACHAL PRADESH 5 147 77 71.20 102 52.38
2 NAGALAND 5 124 64 37.35 81 51.61
3 JAMMU-KASHMIR 5 125 79 140.00 607 63.20
4 MIZORAM 5 125 75 21.82 93 60.00
5 RAJASTHAN 5 126 56 181.25 195 44.44
6 ASSAM 5 136 105 44.04 171 77.21
7 MIZORAM 3 75 46 39.42 110 61.33
8 MEGHALAYA 2 50 14 63.4 18 28.00
    35 908 516 598.48 1377 56.83
Sr. No. State Programmes Conducted Trainees Trained Unit Started Total Investment Made (Rs. In lacs) Employment Generated Success Rate %
1 ANDHRA PRADESH 10 276 145 314.40 575 52.54
2 BIHAR 10 263 140 360.35 529 53.23
3 JAMMU & KASHMIR 10 267 133 779.92 810 49.81
4 KARNATAKA 10 283 155 164.75 347 54.77
5 RAJASTHAN 10 256 135 388.60 403 52.73
    50 1345 708 2008.02 2664 52.64
Sr. No. State Programmes Conducted Trainees Trained Unit Started Total Investment Made (Rs. In lacs) Employment Generated Success Rate %
1 GUJARAT 10 256 164 353.45 530 64.06
2 MAHARASHTRA 10 284 168 321.61 581 59.15
3 UTTAR PRADESH 10 271 128 211.83 408 47.23
4 UTTRAKHAND 10 254 115 199.13 272 45.28
5 BIHAR 10 257 164 674.12 790 63.81
5 JHARKHAND 10 266 141 268.33 472 53.01
5 JAMMU-KASHMIR 10 289 60 573.00 341 20.76
5 PUNJAB 10 256 138 537.40 615 53.91
5 HARYANA 10 284 158 233.02 378 55.63
5 HIMACHAL PRADESH 10 280 114 188.89 278 40.71
  Total 100 2697 1350 3560.78 4665 50.06
Sr. No. State Programmes Conducted Trainees Trained Unit Started Total Investment Made (Rs. In lacs) Employment Generated Success Rate %
1 Assam 23 575 225 170.08 895 39.13
2 Manipur 4 110 69 10.22 70 62.73
3 Meghalaya 5 125 25 28.02 63 20.00
4 Mizoram 3 75 43 48.04 112 57.33
5 Nagaland 3 75 14 2.24 27 18.67
5 Arunachal Pradesh 4 100 7 11.27 19 7.00
5 Tripura 6 150 23 54.05 116 15.33
5 Sikkim 2 50 22 22.00 92 44.00
  Total 50 1260 428 345.92 1394 33.97
Sr. No. State Programmes Conducted Trainees Trained Unit Started Total Investment Made (Rs. In lacs) Employment Generated Success Rate %
1 GUJARAT 24 598 377 1218.74 1502 63.04
2 MAHARASHTRA 26 646 432 1277.77 1710 66.87
3 UTTAR PRADESH 18 463 195 840.44 758 42.12
4 UTTARANCHAL 6 171 109 427.30 241 63.74
5 BIHAR 8 200 106 320.44 633 53.00
5 JHARKHAND 18 459 270 1578.26 1165 58.82
    100 2537 1489 5662.95 6009 58.69

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