district export action plan

Draft District Export Action Plan: Shivamogga

September 2021

Contents

1. Introduction ............................................................................................................. 3 2. District Profile ......................................................................................................... 4

2.1 Geography ............................................................................................................. 4 2.2 Flora and Fauna ................................................................................................. 4 2.3 Natural Resources of the District ........................................................................ 5 2.4 Demography ....................................................................................................... 6 2.5 Handicraft ........................................................................................................... 7

3 Tourism ................................................................................................................... 8 4 Economic Indicators of the District .................................................................... 10

4.1 Primary, Secondary & Tertiary Sector .............................................................. 10 4.2 Land Utilization ................................................................................................. 11

5 Industrial Profile ................................................................................................... 11 5.1 Infrastructure ........................................................................................................ 11 5.2 Industry ................................................................................................................ 12 5.3 Key Players .......................................................................................................... 13

6 Industrial Areas/ Estates ...................................................................................... 14 6.1 Industrial Areas .................................................................................................... 14 6.2 Industrial Estates ................................................................................................. 14 6.3 Proposed Industrial Park ...................................................................................... 15

7 SWOT Analysis of Shivamogga........................................................................... 15 8 District as Export Hubs: An initiative by Government of India ......................... 16 9 Institutional Mechanism & Responsibility for district as export hubs ............. 16 10 Exports Scenario .................................................................................................. 18

10.1 One District One Product (ODOP) ..................................................................... 19 10.2 State’s Export Performance ............................................................................... 19 10.3 Identification of District Export Basket ................................................................ 21 10.4 Product Promotion and Export Strategy ............................................................. 22 10.5 Promising Sector ................................................................................................ 23

11 Potential Investment Opportunities .................................................................... 24 11.1 Opportunities in Agro-Based Industry: ............................................................... 24 11.2 Opportunities in Auto Component Industry: ....................................................... 24 11.3 Opportunities in Textiles and Apparel ................................................................ 25 11.4 Opportunities in Tourism .................................................................................... 25 11.5 Opportunities in BioPharma and wellness .......................................................... 25

12 Strategy and Action Plan ..................................................................................... 26

1. Introduction

Shimoga, officially known as Shivamogga, is a city and the district headquarters of

Shivamogga district in the central part of the state of Karnataka, India. The city lies on the

banks of the Tunga River. Being the gateway for the hilly region of the Western Ghats,

the city is popularly nicknamed as "Gateway to Malnad".

The city is 569 m above sea level and is

surrounded by lush green paddy fields, arecanut

and coconut groves. It is located 267 kms from the

state capital Bangalore and 195 kms from the port

city Mangalore.

The name of the city is derived from the term

"Shivmoga". A version of etymology is due to the

story that Lord Shiva drank the Tunga river water

using "Mogge", hence the name Shiva-mogga".

Another version of etymology is that

the name is derived from the term "Sihi-Mogge",

meaning "sweet pot".

The district formed the southern tip of the Emperor

Ashoka's Mauryan Empire in the third century BC. It was ruled during later centuries by

the Kadambas (4th century), Chalukyas (6th century), Ganges, Rashtrakutas (8th

century), Hoysalas (11th century), and the Vijayanagara rulers (15th century). The city

got an independent identity under the KeladiNayakas' rule during the 16th century. From

the late 17th century, the city became a part of the Kingdom of Mysore until the

independence of India in 1947, when the Mysore state was merged into the Republic of

India.

Shivamogga comprises of the 7 taluks namely Soraba, Hosanagara, Shikaripura, Sagar,

ThirthahaIli, Shivamogga and Bhadravathi.

Figure 1 - Constituency Map of Shivamogga District

2. District Profile 2.1 Geography Shivamogga is a district in the central part of the state of Karnataka, India. The city lies

on the banks of the Tunga River. Being the gateway for the hilly region of the Western

Ghats, the city is popularly nicknamed as "Gateway of Malnad". The area covered by

Shivamogga is 12,805 Sq Km1

Table 1: Latitude and Longitude of the Taluks

S. No. Taluks Latitude Longitude

1 Soraba 14.38° 75.1°

2 Hosanagara 13.92° 75.07°

3 Shikaripura 14.27° 75.35°

4 Sagar 14.1667° 75.0333°

5 ThirthahaIli 13.7° 75.23°

6 Shivamogga 13.9299° 75.5681°

7 Bhadravathi 13.8276° 75.7064°

Source: Google maps

2.2 Flora and Fauna The Malnad region is a biodiversity hotspot with a rich diversity of flora and fauna. The

region has protected areas classified as wildlife sanctuaries to ensure the protection of

the wildlife.

The Gudavi Bird Sanctuary is located in Soraba Taluk of Shivamogga District in the state

of Karnataka and is one of the most picturesque and well-known bird sanctuaries of India.

Sharavathi Valley Wildlife Sanctuary is in Sagar Taluk. It has evergreen and semi-

evergreen forests with its eastern portion adjoining the Linganamakki reservoir.

1 District website and secondary sources

https://en.wikipedia.org/wiki/Karnataka

https://en.wikipedia.org/wiki/Tunga_River

https://en.wikipedia.org/wiki/Western_Ghats

https://en.wikipedia.org/wiki/Western_Ghats

https://en.wikipedia.org/wiki/Malenadu

Shettihalli Wildlife Sanctuary lies adjacent to Shivamogga city and has forests ranging

from dry deciduous to semi-evergreen and is spread over an area of 395.6 km22.

2.3 Natural Resources of the District The detailed natural resources present in Shivamogga is given below in Table 2:

Table 2: Natural Resource of the District3

2 Secondary sources 3 https://shimoga.nic.in/en/horticulture-department/

Natural Resources Key Features

Crops The main crops grown in the district are paddy, ragi, jowar,

maize, cotton, chilly, groundnut, pulses, horse-gram,

sugarcane, areca nut and sunflower

Land The district has 2768.55 sq. km of forest, which constitutes

32.66 % of the total geographical area of the district.

Mineral resources China clay, fireclay, iron ore, iron ore (magnetite), kyanite,

limestone, manganese ore, quartz/silica sand, asbestos,

copper, titanium minerals, vanadium

Horticulture

Horticulture crops are growing in 121281.00 ha area in

Shivamogga district, i.e, 43.03% of the net cultivating area in

the district and more than 15% in the state. Cultivation of

plantation and spice crops are more in malnad regions where

in semi malnad regions farmers are cultivating fruits and

vegetables along with plantation and spice crops.

https://shimoga.nic.in/en/horticulture-department/

2.4 Demography

i. Population As per the census 2011, male and female population constitutes the same

population the total population of the district4 This highlights the prevalence of

gender equality in the district. The details of population is given below:

Table 3: Population

Population 2011 20215

Total Population 17,52,753 18,86,136

Male Population 8,77,415 NA

Female Population 8,75,338 NA

Source: 2011 census

ii. Demography at a Glance

Below Table (Table 4) gives you glance of the demography in Shivamogga like

details about area, revenue divisions, taluks, hobli’s municipalities, villages,

literacy rates, sec ration etc.

Table 4: Demography of Shivamogga

Demographic Label Value Area 12,805 Sq Km

Number of Revenue Divisions 2

Number of Taluks 7

Number of Hobli’s 37

Number of Gram Panchayats 271

Number of Municipalities 9

5 https://www.indiagrowing.com/Karnataka/Shimoga_District

Demographic Label Value Number of Villages 1681

Sex Ratio 991 per 1000 males

Literacy rate 87.78 percent

Child Sex Ratio 960

Source: Shivamogga District website

2.5 Handicraft Gudigars, hereditary crafts persons are working in the districts of Shivamogga who carve

exquisite figurines of gods and goddesses from the soft wood which is known as

Sandalwood Carving. There are several handicrafts items which are being made from

carvings like Photo frames, paper knives, jewellery caskets and garlands amongst many

others.

Figure 2 Sandalwood Articles of Shivamogga

Pic Courtesy – Shivamogga online

3 Tourism

Shivamogga is a true gem of nature and scenic landscapes. The stunning hill station

getaway has something to offer for everybody. It is truly a paradise and a treat to one’s

eye. Places to visit in Shivamogga are as varied and diverse as the landscape itself.

Some of the major attractions in Shivamogga are mentioned below:

Jog Falls - Wondrous sight is that of river Sharavathi

taking a spectacular leap into the chasm from a height

of 900 feet to form the highest waterfalls in India

Vanake-Abbey Falls -The falls are situated 4 Kms

away from Agumbe, the sunset point in Thirthahalli

Taluka. The falls are surrounded by lush green trees

and natural beauty.

Achakanya Falls - 10 Kms from Thirthahalli on the way

to Hosanagar near Aralsuruli you can find this eye

catching waterfall. The river Sharavathi takes a

spectacular leap here to form this wonderful fall.

Figure 3 Jog falls

Figure 4 Vanake-Abbey Falls

Figure 5 Achakanya Falls

Hidlamane Falls – It is situated near Nittur in

Hosanagar Taluka. To reach the falls you have to trek

by the rocky hills surrounded by dense lush trees.

Linganamakki Dam 6 Kms from Jog falls this dam is constructed across river

Sharavathi. The height of the dam is 1819 ft above sea

level. Linganmakki dam is the main feeder reservoir for

the Mahatma Gandhi Hydro Electric Power unit.

Agumbe - Spectacular sunset point, also known as the Cherrapunji

of South India

B. R. P. Dam - Located 28 Kms from Shivamogga city near

Kuvempu university. The dam is constructed across river bhadra

and the height of the dam is 194 ft. There are a number of islands

created by the Bhadra river and you can enjoy the boat ride around

this island.

Figure 6 Hidlamane Falls

Figure 7 Linganamakki Dam

Figure 8- Agumbe

Figure 9 B. R. P. Dam

4 Economic Indicators of the District

Shivamogga contributes 2.9% in Karnataka’s total GSDP and 2.9% in Net State Domestic

Product (NSDP) during 2018-19. Pere capita income of the district is Rs. 205368 during

2018-196.

Table 4: Economic Profile of the District

Particulars Current Prices

(2018-19) INR Cr. Constant Prices

(2011-12) (INR. Cr.)

Gross District Domestic Product (GDDP) 43283 29916

Net District Domestic Product (NDDP) 38638 26277

Per Capita Income (Per Capita NSDP at Current Prices)

*205368

Source: Directorate of Economics and Statistics, Government of Karnataka * In Rs.

4.1 Primary, Secondary & Tertiary Sector Tertiary sector contributes 52%, followed by Secondary sector contributing 25.9% and

20.9% respectively to the total contribution as per the current prices. The sectoral

bifurcation of Net District Income at current and constant (2011-12) prices for the year

2018-19 is highlighted in Table 6:

Table 5: Sectoral Bifurcation of Shivamogga

Sector Current Prices Constant Prices Contribution

2018-19 (INR Cr.) (2011-12) (INR Cr.) 2018-19 (%) Primary 8050 3762 23.4

Secondary 8469 6751 24.6

Tertiary 17908 12298 52.0

Total 34427 22811 100.0

Source: Directorate of Economics and Statistics, Government of Karnataka

6 https://planning.karnataka.gov.in/storage/pdf-files/Reports/Economic%20Survey%202020-21_Eng_Final_R.pdf

https://planning.karnataka.gov.in/storage/pdf-files/Reports/Economic%20Survey%202020-21_Eng_Final_R.pdf

4.2 Land Utilization Shivamogga has land utilization of 33% for forest, 29% for cultivation and 38% for others,

making Shivamogga a perfect destination for investment in all the major sectors like

tourism, agriculture and industries like garment, auto components etc.

Figure 10 Land Utilization of Shivamogga

5 Industrial Profile 5.1 Infrastructure

i. Connectivity o Rail: Railway route length of 131 km passes through the district. Further,

for the development of connectivity, Shivamogga-Shikaripur– Ranebennuru

new railway line projects are under progress.7

o Road: There is a 221 km of National Highway and 980 km of State Highway

which passes through the District which makes the district well connected

with other districts

o Air: The nearest airport located to Shivamogga is Mangaluru International

Airport, Mangaluru which is at a distance of 190 Km. The Government of

Karnataka is planning to develop a new airport at Shivamogga which will

improve its connectivity and enhance the local industries, MSME amongst

others

7 Secondary research & Economic Survey of Karnataka

33%

29%

38%

Land Utilization of Shivamogga

Forests

Cultivableland

Other land

o ICD: Nearest ICD located to Shivamogga is Inland Container Depot (ICD)

Kadakola (260 km.) & ICD, Bangalore (320 Km)

o Port: Nearest seaport is Mangaluru, 200 km away from Shivamogga city.

Other seaports include Chennai, Karwar and Goa

ii. Water Supplies: Seven major rivers - Tunga, Bhadra, Kumudwathi, Varada, Kushawati,

Dandavati and Sharavathi, and nine major reservoirs including Linganamakki,

Ambligola and Tunga account for the water supply to the district.

iii. Power Supply: Mangalore Electricity Supply Company Limited (MESCOM) supply electricity in

Shivamogga. Projects like Sharavathi Hydro Electric Project installed with

capacity of 1,035 MW, Linganamakki Dam (installed capacity of 55 MW),

Varahi Hydro Electric Project (Installed capacity 460 MW), Gerusoppa Dam

Project (installed capacity of 240 MW) are other Hydro Projects in the District.

District account for 30% of the power generated in Karnataka. This shows that

there is no dearth of power in Shivamogga making it even more lucrative for

industries to invest.

5.2 Industry i. Large and Medium Industries - There are 16 Large and Medium Scale Industries

with an aggregated investment of INR 1671 crores and employment of 103138

ii. Coverage of MSME – There are 4715 MSME registered under Udyam Registration

till 9th August, 2021 in which Micro industries constitutes 4497, Small Industries

constitutes 199 and Medium Industries constitutes 199.

8 Secondary Research 9 MSME Udyam registration

5.3 Key Players India’s biggest garment exporter M/s Shahi Exports has invested and has a garment

factory in Shivamogga. Shivamogga has attracted players like M/s Mysore paper mills

ltd., M/s Visvasvaraya Iron & Steel Ltd., M/s Exchange technologies etc. who are

operating in the district, clearly indicating the potential for investment in Shivamogga.

Some of the key players in the district are:

i. Mysore Paper Mills Ltd. Visvasvaraya Iron & Steel Ltd.

ii. Shahi Exports Pvt. Ltd.

iii. English India Clay Ltd.

iv. Malenadu Alloy Castings Pvt. Ltd.

v. Paper Packaids Pvt. Ltd.

vi. Perfect Alloy Components Ltd.

vii. M.N, Pickles Industry

viii. Exchanging technologies

ix. Pealite Liners Pvt. Ltd.

x. Shivamogga Cooperative Milk Producers Societies Union Limited

xi. Shanthala Spherocast Pvt. Ltd.

xii. Auto Machine Shop & Pearlite Liners Pvt. Ltd.

xiii. Paper Packaging Pvt. Ltd.

xiv. Ambuthirtha Power Pvt. Ltd

xv. Bharath Starch Industries

4,497

199 19

4,715

0

1,000

2,000

3,000

4,000

5,000

Micro Small Medium Total

Shivamogga MSME Coverage

Figure 11 Shivamogga MSME Coverage

6 Industrial Areas/ Estates

6.1 Industrial Areas There are 4 major industrial areas in Shivamogga. The details are given below:

Industrial Areas Name Extent (acres)

Auto complex 19

Mandli – Kallur 42

Shivamogga/ Bhadravathi 438

Sanda, Shikaripura 208

Devakathikoppa 250

6.2 Industrial Estates

There are 9 major industrial estates in Shivamogga. The details of which are given

below:

Industrial Estates

Name Extent (acres)

Shivamogga 30

Mandli 10

Bhadravathi 5

Sagar 14

Shiralkoppa 5

Hosanagara 5

Soraba Proposed 20

Sagar Proposed 20

Ripponpet Proposed 5

6.3 Proposed Industrial Park The State has announced the establishment of IT SEZ and IT Park in Non-SEZ

areas in Shivamogga. KEONICS has been mandated to establish and develop IT-

SEZ and IT Park in KIADB Industrial Estate, of Shivamogga, Bhadravathi Highway.

Out of 33 acres land available 6 acres had been allotted to SEZ entrepreneurs.

7 SWOT Analysis of Shivamogga

Strength - Developed Infrastrucure Connectivity

- Industrial Parks & Estates - Presence of Natural Resources- Presence of Skilled workforce - Presene of Big export houses

Weakness- Lack of Awareness among producers about export opportunities, markets etc.

- No Inland Container Depot (ICD)

Opportunities- Huge opportunity for Agro industries,

auto components industries and garment industries, bio-pharma and wellness - Presence of sector polices to back

invesments in the district- Connectivity will increase with

developemnt of new propsed airport in the district

Threat- Every state is offering textile and

garment policy making it competiitive for the district to attract the investment

SWOT

8 District as Export Hubs: An initiative by Government of India

During Independence Day speech in 2019, Hon’ble Prime Minister Shri Narendra Modi

stated that each district of our country has a potential equal to that of one country.

Every district has products and services which are being exported, and can be further

promoted, along with new products / services, to increase production, grow exports,

generate economic activity and achieve the goal of AtmaNirbhar Bharat and Make in

India.

The objective to develop Shivamogga as an export hub is to enable MSMEs, farmers

and small industries to get benefit of export opportunities in the overseas markets and

shift focus on district led export growth for self-sufficiency and self- reliance. This shall

attract investment in the district to boost manufacturing and exports and provide

ecosystem for innovation/ use of technology at district level to make the exporters

competitive. It should also help reduce transaction cost for the exporter at various

stages of export cycle and generate employment within the district.

Moreover, to enable local artisans, access overseas buyers for their craft, the

government has identified Shivamogga as an ‘Export Development Center’ (EDC).

The objective is to provide support in terms of skill development, branding and

accessing markets through online platform and ensure first and last mile connectivity

through India Post.10 It is imperative to set up an EDC which would provide a platform

to the artisans and other MSMEs for onboarding their products on various e-

commerce platforms. A grievance redressal mechanism also needs to be set up at the

EDCs

9 Institutional Mechanism & Responsibility for district as export hubs To ensure smooth functioning of district as export hubs, District Export Promotion

Committees (DEPCs) need to be constituted in Shivamogga. These DEPCs shall be

headed by DM/Collector/DC/District Development Officer of the district and co-chaired

10 https://economictimes.indiatimes.com/industry/services/retail/export-development-centres-in-karnataka-to-help-craftsmen-access-e-marketplace/articleshow/81462630.cms?from=mdr

https://economictimes.indiatimes.com/industry/services/retail/export-development-centres-in-karnataka-to-help-craftsmen-access-e-marketplace/articleshow/81462630.cms?from=mdr

https://economictimes.indiatimes.com/industry/services/retail/export-development-centres-in-karnataka-to-help-craftsmen-access-e-marketplace/articleshow/81462630.cms?from=mdr

by designated officer from DGFT. The composition of the committee is illustrated

below (Table 7):

Table 7: Composition of the DEPC

S. No. Representative from the respective departments Position

1 DM/Collector/DC/District Development Officer of the

District Chair

2 Designated DGFT Regional Authority Co-Chair

3 Agriculture Department Member

4 Horticulture Member

5 Livestock Member

6 Fisheries Member

7 Handicrafts Member

8 Handlooms Member

9 Industry Member

10 Lead Bank Manager Member

11 Export Promotion Councils Member

12 Quality and Technical Standards Bodies Member

13 MSME, GoI Member

14 Heavy Industry, GoI Member

15 Revenue, GoI Member

16 Textiles, GoI Member

The roles and responsibilities of DEPC is illustrated below:

10 Exports Scenario

The Government of Karnataka’s initiative on the subject is aligned with the Government

of India’s vision to develop each district as an export hub in the country. Major products

that are exported from Shivamogga district are as follows11:

Category Products Agriculture Ginger, Banana, Pineapple, maize and value-added

products

Spices Pepper and Cardamom

11 Primary Research

Figure 12 Roles & Responsibilities of DEPC

Category Products Others Arecanut value added products, Areca leaf cup/plate

Auto Auto Components/castings

Textiles Readymade garments

Handicraft Handicraft items

The above-mentioned products are mainly exported to countries like USA, European

Countries like UK, Germany, Spain, France, Italy, South-East Asian counties like

Thailand, Vietnam , Malaysia, Indonesia, Other Asian countries like Japan, Bangladesh,

Gulf Countries like UAE, Saudi Arabia etc.

10.1 One District One Product (ODOP) The crop identified by Karnataka State Agricultural Produce Processing and Export

Corporation Limited (KAPPEC) for One District One Product of Karnataka is Pineapple.

The export performance of Pineapple and major markets and opportunities is given in

subsequent sections. The product identified by Dept. of I & C, Karnataka under ODOP is

BioPharma and Wellness.

10.2 State’s Export Performance Export Performance of the above identified products from Karnataka to world is given

below:

Karnataka's Exports to world (In USD Mn.) S. No. Product 2020-21 Major markets

1 Readymade garments 1355.0

USA, UK, Germany, Spain,

France & Japan

2 Auto Components/castings 236.5

USA, Thailand, Japan,

Germany & Italy

3 Maize and value added products 99.0

Vietnam, Indonesia,

Bangladesh, Malaysia,

Myanmar & UAE

Karnataka's Exports to world (In USD Mn.) S. No. Product 2020-21 Major markets

4 Ginger 6.8

Bangladesh, Morocco, Egypt.

Germany & Indonesia

5 Banana 1.8

UAE, Qatar, Germany, USA &

Iran

6 Pepper 1.7

Germany, Vietnam, Canada,

Bangladesh & USA

7 Cardamom 1.5

Canada, Saudi Arabia, Japan,

Israel & UK

8 Arecanut 0.5

Sri Lanka, Maldives, Bhutan,

USA & Canada

9 Pineapple* 0.1

Belgium, France, Maldives,

Qatar & Saudi Arabia

Source: DGCI&S, Kolkata, 2021 * ODOP Product

It is evident from the above table that exports of RMG, Auto Components, Maize and

value-added products, Ginger etc. has good export potential from Shivamogga.

10.3 Identification of District Export Basket To promote exports from the State, there is a need to diversify district’s export basket,

destinations and boost high value and value-added export products. For this study,

following is the structure based upon the Ansoff Matrix, which is a strategic planning tool

that provides a framework to help marketers devise strategies for future growth:

1. Readymade garment – USA, UK, Germany, Spain, France & Japan

2. Auto Component - USA, Thailand, Japan, Germany & Italy

3. Maize and value added products - Vietnam, Indonesia, Bangladesh, Malaysia, Myanmar & UAE

1. Readymade garments – South Korea, Brazil, Poland, Hong Kong & Russia

2. Automobile – China, Mexico, Spain, Canada, France

3. Maize and value added products – Japan, Mexico, China, Korea, Egypt

1. Pineapple - Belgium, France,

Maldives, Qatar & Saudi Arabia 2. Bio Pharma & Wellness – USA,

South Africa, UK, Russia & Nigeria 3. Banana - UAE, Qatar, Germany,

USA & Iran 4. Pepper - Germany, Vietnam,

Canada, Bangladesh & USA 5. Cardamom - Canada, Saudi Arabia,

Japan, Israel & UK 6. Arecanut - Sri Lanka, Maldives,

Bhutan, USA & Canada

1. Pineapple – USA, Netherland, China,

Japan & Spain 2. Bio Pharma & Wellness – Germany,

Switzerland, China, Belgium & Japan 3. Banana – Russia, Japan, China,

Netherlands, UK & France 4. Pepper – China, Thailand, Malaysia, UK,

Bangladesh & Japan 5. Cardamom – UAE, Bangladesh, China,

Netherlands & Egypt 6. Arecanut – Iran, Singapore, Thailand,

Bangladesh & UAE

Division of Products

Existing Market New Market

Existing Product

New Product

10.4 Product Promotion and Export Strategy i. Organize training programmes/seminars to create awareness among exporters on

importance of value addition, competitiveness and quality

ii. Design industry specific courses and implement the same for the identified sectors

by RA Bangalore, such as Automotive and Auto Components, Textiles and

Apparels, etc.

iii. Leverage the Agri universities present in Shivamogga for boosting exports

iv. Export Facilitation Center (EFCs) to provide end-to-end on-ground facilitation and

handholding support to exporters who are already trading overseas or are trying

to access foreign markets

v. Technological developments in communications will make it easier for smaller

firms to enter international markets

vi. The large corporate players in the district, should promote the district MSME

suppliers in foreign markets as a part of their CSR activities.

vii. Organize Trade Fairs and Buyer-Seller meetings in emerging markets and non-

traditional products

viii. Marketing techniques to be used to focus on value addition and diversification of

products

ix. Set up a professionally managed apex Public Institution (like EXIM Bank), with

capabilities to provide strategic guidance to support Private & PPP initiatives

x. Incubation cells and hubs within clusters must be developed in collaboration with

academia / regional institutions to provide district with mentoring and technology

support, and shared R&D facilities

xi. Provide financial assistance to the exporters with respect to both pre-shipment and

post-shipment credit to sustain the expenses, term loans, subsidies etc.

xii. A District coordination cell to be established for easing out the various

cumbersome procedures that an exporter faces on regular basis and to link all the

stakeholders in the export eco-system

xiii. To establish a dedicated PDC (Project Development Cell) to facilitate the investors

in the district

xiv. To provide marketing and branding support to the artisans, MSME’s,

entrepreneurs, exporters in terms of promotion of their products on Social media,

e- commerce platforms and packaging of the products.

10.5 Promising Sector To promote the district, it is important to identify promising and upcoming sectors based

on the strengths of the district.

• Agro-Based Industry: There is a huge opportunity in Shivamogga pertaining to

Agri based products. The opportunities are available in the areas like Processing

Units (Pickle making, juice extraction, floriculture-based units), establishing

nurseries to provide good quality saplings and seeds, inter cropping in areca nut

and coconut plantations & introducing floriculture in open field and under protected

conditions.

• Auto Component Industry: Karnataka is the auto innovation hub of India, being

home to leading global companies such as Mercedes (Daimler), Bosch, Toyota,

Volvo, Scania etc. There is already presence of Auto Components clusters in

Shivamogga which indicate that there is a presence of skill manpower resources

and infrastructure facilities.

• Opportunities in Textiles and Apparel: Bangalore is the garment hub of the

country with the presence of major brands like Raymonds, Aditya Birla among

other notable players. Shivamogga has also attracted India’s largest apparel

exporter M/s Shahi Exports Pvt. Ltd

• Tourism: Shivamogga provides huge investment opportunity in tourism with

presence of beautiful landscape and numerous water falls.

• BioPharma and wellness: One of the most upcoming sectors in the Indian and

global commercial context is that of BioPharma & Wellness. One of the most

upcoming sectors in the Indian and global commercial context is that of BioPharma

& Wellness. The reason behind this is growing consumer awareness, increasing

disposable incomes and a desire among the millennial population to transform their

lifestyles has given the wellness sector across the world an unprecedented boom.

In India, the wellness industry for a long time flourished by banking on the demand

for traditional and alternative healing practices such

as Ayurveda, Yoga, Naturopathy. Shivamogga provides huge opportunity in

BioPharma and wellness.

11 Potential Investment Opportunities

Government of Karnataka’s is taking many key initiatives to promote exports from

Shivamogga and attract investment. For Example:

• With an aim to encourage spirit of Innovation and Entrepreneurship, the “New Age

Incubation Network” has been established in Shivamogga

• Strengthening of Center Of Excellence For Floriculture at Tunga Horticulture Farm,

Shivamogga. The main objectives of programme are to impart training and create

awareness among farmers on flowers and high tech cultivation of flower crops

• Department of Horticulture has developed Biotechnology Centre Shivamogga

11.1 Opportunities in Agro-Based Industry:

The key enablers for investment in this sector are water resources, soils are suited for

different crops with varied agro- climatic conditions, suitable irrigation sources,

presence of state warehouse APMC yards in the district. Further, there is the proposed

100 Acres Food Park and Animal Feed Unit.

11.2 Opportunities in Auto Component Industry:

With 390 Auto component units in Shivamogga, Auto-complexes and Industry Parks

coupled with robust Karnataka’s Industrial Policy 2020-2025, makes it a very potential

district for investment in Auto components industry

11.3 Opportunities in Textiles and Apparel Shivamogga has presence skilled manpower, available resources, industrial parks

and connectivity makes a very prominent for district for investment. Further, to

compliment the investment in the textiles and apparel sector the Karnataka’s Textile

and apparel policy, 2019-24 provides subsidies like capital subsidy, interest subsidy,

power subsidy, ESI & EPF subsidy, stamp duty exemption, ETP, wage subsidy to

mention a few.

11.4 Opportunities in Tourism

Shivamogga provides huge investment opportunity in tourism:

• For an adventure lover, Shivamogga offers everything to enjoy in adventure

related activities. Adventure tourism is rapidly gaining its popularity. Due to

varied landscape and rich biodiversity Shivamogga provides opportunity in

adventure tourism.

• Shivamogga provides opportunity in development of ecotourism destination

which is the fastest growing marketing industry of tourism in today’s era.

• Agritourism is the latest concept in the Indian tourism industry, which

normally occurs on farms and Shivamogga which is also popularly known

for its Agro industry, provides plethora of opportunities in agritourism. The

concept of Agritourism is very simple one, the urban tourists go to the

farmers’ home, stay there like a farmer, experience the agricultural

activities, eat the local rural food, wear traditional clothes, get the knowledge

of the local culture, traditions. Shivamogga is the perfect destination for

Agritourism.

11.5 Opportunities in BioPharma and wellness Shivamogga has 2768.55 sq. km of forest (33%) which gives ample of

opportunities to Bio pharma and wellness industry to invest. In line with this

BioParma and Wellness has been chosen for “One District One Product” by Dept.

I & C, Karnataka for Shivamogga.

Following are the key highlights why to invest in BioPharma and wellness:

• MAHE, Manipal, Bengaluru has been sanctioned Rs. 4.26 crore for

establishment of Technology Business Incubator in the areas of Biopharma

and Biomedical and related areas for the period of 5 years.

• Biotech startups growing at 30% annually in the state.

• First state in the country to bring out biotech policy.

• Department of Horticulture has developed Biotechnology Centre at

Shivamogga

• 10 new New 'C' and 'D' Type Sheds are being constructed in Shivamogga

12 Strategy and Action Plan

Major initiatives and strategies, which will enhance exports from Shivamogga are detailed

below:

Schedule Categories Strategies Action Plan

Short &

Medium

Term

Skill

Development

• Organize outreach

programs/ workshops for

the exporters

• Work towards continuous

feedback from the industry

for understanding their

perspective

• Encourage youth to take up

this profession by

generating awareness

among them

• Upskill the existing workers

& exporters

• Concerned stakeholders to be

invited to business

events/workshops to help

provide market linkages to

exporters

• DICs must make effective use of

existing training institutes

established by the State Govt. at

district & state level for imparting

skill training

• Conducting dedicated

workshop/webinar for the skill

development in identified sectors

by the experts on the topics such


• Workshop on the

opportunities and

challenges in Skill

Development in Auto

components, textile etc.

• Conduct skill training

programmes for logistics

sector

as: training needs and skill gaps

of the Automotive and apparel

industry.

• Establishment of a portal with

database of trained personnel

linking to the job opportunities

Financial

Assistance

• Provide term loans to small

and medium enterprises to

enable them to upgrade

export production capability

• Assist exporters with pre-

shipment and post-

shipment credit

• Smooth functioning of the

exporters

• Encourage and refund the

course fees paid by

individual entrepreneurs for

acquiring certification

courses on Export -Import

Management conducted by

IIFT, New Delhi and FIEO

and other recognized

institutions

• Information Dissemination about

existing financial schemes which

the MSMEs, exporters and other

relevant stakeholders can avail

which would facilitate in export

promotion

• Support smaller units in

establishing their business

through financial assistance


Marketing &

Packaging

Support &

Grievance

Redressal

• Adopt modern packaging

technology which would

reduce the packaging cost

of the products

• Marketing techniques to

promote the exports of

Pineapple, maize, pepper

and other Agri Products

• Organizing and facilitating

participation in international

trade fairs and exhibitions

• Grievance Redressal

Mechanism

• The district, with the help of

Indian Institute of Packaging

(IIP), to work towards improving

the quality standards &

manufacturing compliances,

learning new techniques &

technology and market

intelligence. Parallelly, tie up with

NGO’s to help the artisans in

packaging and other activities

• To enhance exports, it is

imperative to provide training to

the farmers for the adoption of

innovative methods in the growth

of quality Agri products. Also,

Pineapple is an identified ODOP

product, on which the district

must focus with a vision to

promote it at a global level.

• Regularly conduct Trade

Fairs/exhibition both at the

National and International

Levels; sponsor trade

delegations abroad

• Set up a grievance redressal

mechanism to resolve

grievances of exporters within a

stipulated time frame


• Cooperate with FIEO, ITPO and

Export Promotion Councils

Commodity Boards

Quality

Enhancement

• Collaboration with QCI

• Service Quality

Improvement

• MoU with (Quality Council of

India) QCI for defining quality

standards of the products so

that their quality shall be

maintained/ improved, and they

shall be exported across the

globe with brand logo which

ensures its authenticity

• Invest in service training of the

staff. Identify the gaps in service

training in the current workforce.

Ensure that the employees take

a customer service seminar,

online, or in person, as part of a

performance improvement

requirement. Organize training

sessions that target specific

issues or gaps, such as how to

interact with exporters

Long

Term

Branding and

Promotion

• Design logos for Agri

products goods

• Leveraging the power of

social media

• Leveraging e-commerce

facilities

• Appoint an agency for designing

of the logo and ensure only quality

products use this logo which will

ensure product differentiation

• Tie up with various e-commerce

players to market the products on

their online platforms


Infrastructure

• Agri Export Zones

• Centre of Excellence for e-

mobility (Create an

ecosystem for research,

innovation & skill

development for green

mobility)

• Project Development Cell

(PDC)

• Quality testing and

certification labs for exports

• Uninterrupted Power

Supply

• Mega Food Parks

• Logistical infrastructure

should be developed

• Set up an Agri Export Zone in

Shivamogga district for

Pineapple, Spices, maize and

other Agri products

• Under PDC, the district shall

facilitate investments in a timely

and targeted manner. Provide

necessary support on the issues

faced by investors to finalize their

investment plans

• Development of Inland Container

Depots (ICDs) Shivamogga since

there are nearby ICDs. This will

also reduce Container handling

and Freight charges and provide

concession to the districts

• Possibility of providing

independent feeders for power

supply for such clusters shall be

examined, in consultation with the

State Governments, so that

uninterrupted power supply could

be ensured

• Encourage local industry players

to become exporters by providing

a conducive environment in the

district

• Mega food parks should include

creation of processing


infrastructure near the farm,

transportation, logistics and

centralized processing centers.

This would facilitate food

processing units to meet

environmental and safety

standards

Policy/

Regulatory

Reforms

• Capitalizing on the existing

ASIDE & TIES scheme to

support the export logistics

• Online single window

system (No physical

touchpoints between the

applicant and department

from the time of application

process till the final

decision)

• Identification of relevant projects

to address the gaps in

infrastructure which are not

addressed by any other scheme.

• Encourage investor/ entrepreneur

to apply for all the

licenses/approvals through the

online single window portal.

Single Window System should be

integrated with SMS gateway/

emails so that applicant gets

notification at every critical stages

of application processing

Annexures a. List of Exporters

b. List of MSMEs

c. List of Warehouse

d. List of Cold Storages

district export action plan

Documents