DIAGNOSTIC STUDY REPORT

ON
GINGER & GARLIC
PROCCESSING UNIT

(DSR)
UNDER
MAHARASHTRA STATE INDUSTRIAL
CLUSTER DEVELOPMENT PROGRAMME
 (MSI-CDP)
SUBMITTED TO
THE DEVELOPMENT
COMMISSIONER (INDUSTRIES)
DIRECTORATE OF INDUSTRIES,
MUMBAI GOVERNMENT OF
MAHARASHTRA
SUBMITTED BY
GAON MAJHA UDYOG FOUNDATION
AWALA
(PROPOSED COMPANY NAME)

LOCATION: DISTRICT:
PREPARED BY

GAON MAJHA UDYOG FOUNDATION

 INDEX
REPORT SERIAL CONTENT PAGE
STATUS
No. NO.
- Abbreviations 5
1 Summary Report 6-9
2 Executive Summary 10-11
3 Introduction 12-15
3.1 Preamble 13
3.2 Vision 14
3.3 Mission 14
3.4 Values 14
3.5 Methodology 15
4 History, Background and Turning Points 16-26
5 Cluster Scenario 27-32
6 National and International Scenario 33-37
7 Future 37-39
8 Cluster Actors 40-44
9 Business Process 45-48
10 Gap Analysis 49-51
11 Distribution Channel 53
12 Analysis of Business Operations 54-56
13 Cluster Map 57-59
14 SWOT Analysis 60-65
14.1 Strengths 61
14.2 Weaknesses 61
14.3 Opportunities 62
14.4 Threats 62
15 Strategic Interventions 63
15.1 Soft Intervention 64
15.2 Hard Intervention 65
16 Impact, Measurement and Analysis 66-68
17 Action Plan 69-72
18 Conclusion 73-74
19 Annexures 76-104
19.1 Annexure–I (List of Cluster Members) 79
19.2 Annexure–II (Details of SPV/List of 81
entrepreneurs who have consented to
implement the cluster program)

19.3 Annexure–III (DSR Validation Report with 83-86

minutes, photographs and attendance sheet)
19.4 Annexure–IV (DSR Scrutiny by G.M., DIC) 87-92
19.5 Annexure–V (Minutes of DLCCC along with 94
recommendation of G.M., DIC)
19.6 Annexure–VI (Proposed Soft Intervention 95-98
Action Plan as per prescribed norms)
19.7 Annexure–VII (Name of the Technical 100
Institute, Expert Person)
19.8 Annexure–A (Certification of G.M., DIC 102
regarding eligibility of proposal under MSI-
CDP)
- Photos 103
Abbreviations:
Abbreviation Description
SSC Scheme Steering Committee
DIC District Industries Centre
DSR Diagnostic Study Report
MSI-CDP Maharashtra State Industrial Cluster Development
Programme
NA Nodal Agency
SPV Special Purpose Vehicle
MSME Ministry of Micro, Small and Medium Enterprises
MIDC Maharashtra Industrial Development Corporation
KVIB Khadi & Village Industries Board
R&D Research & Development
CFC Common Facility Centre
GOM Government of Maharashtra
CDE Cluster Development Executive
IMARC International Market Analysis Research and
Consulting
SUMMARY REPORT
 SUMMARY REPORT PRESCRIBED UNDER MSICDP
Name of Cluster: - M/s. TUMSAR, MAJHA MAHILA UDYOG ASSOCIATION.
Ginger and garlic Processing Cluster
Tal: Tumsar, Mohadi Dist.: Bhandara
Date of preparation: - \ \

1 Location (Maharashtra)
2 Presence of the industrial M/s. TUMSAR GAON MAJHA MAHILA UDYOG
association / consortium, ASSOCIATION.
Address Ginger and garlic Processing
Name of the key person Tal: Tumsar, Mohadi Dist Bhandara
Contact No

3 Name of the Products Products Viz: Ginger and Garlic paste, Ginger and Garlic
oil, Ginger and Garlic powder
4 Cluster’s Age About 10 years
5 Nature of Cluster a) Total no. Micro & small enterprises- 60(regd.)

b) No. of

enterprises of each category: Woman

enterprises 60
SC -
OBC -
General 00
Minority 00
Total 60

c)Total Turnover: 2.5 crores

d) Employment Details
Total Employment: 300

e) Average yearly turnover of the unit owner:

Rs 4 Lacs

f)Pollution angle: Non-Polluting

6 Unit details TYPE REGISTERED UNREGISTERED TOTAL

MICRO 60 0 60
SMALL - - -

7 Major Cluster Problems 1) Presently units are running with traditional

way.
2) Advanced machineries are not available.
 3) Hence could not maintain cost
competitiveness and quality.
4) Could not satisfy the present demand of market in
absence of common facility center (advanced
P/m)
5) Skilled workers are not easily available due to lack
of training facilities. They are not acquainted to
new machineries.
6) Operational cost is high due to individual
procurement of materials and independent
post processing of
8 Interventions proposed Soft Intervention (SI): Training, Awareness Programme,
. with reason Skill up gradation, Industrial tours, consortium
working.

Common facility Centre with advanced machines for

Peeling, Washing, etc. are must.
9 Key Intervention SOFT INTERVENTION
expected under proposed
Cluster Development 1) To get acquainted to new & advanced
(Technology/Products/M technology.
arket/Export quality etc.) 2) Exposure visits to developed industrial areas &
established cluster
3) Marketing management systems awareness
through training, exhibitions etc.
4) Seminar and workshops on export marketing,
advance technology etc.

HARD INTERVENTION

1) Quality upgradation through advanced

machinery
2) Training center
1 Proposed Impact of a) Increase in income of the cluster members &
0 interventions suggested in develop standard of living
terms of turnover, exports, b) Rural Employment generation
employments quality up- c) Expected Turnover of Cluster –30 crores
gradation, environment d) Export –Nil
protection, energy e) Expected Employment- 300 Nos
conservation f) Standing in open market against big
entrepreneurs with self-respect.
g) Quality Upgradation: Quality Products will be
manufactured
h) Environment: To keep the lowest pollution
1 Proposed source of funds 1) Owners Contribution: 10%
1 including mandatory 2) Govt. Contribution : 90%
contribution from stake 3) 100% women entrepreneurs
holders
12 Extent of competition Bhandara, a city in the state of Maharashtra, India, is
indeed known for its potato chips and snacks. The city
has a thriving industry that produces various snacks,
including potato chips, which are popular not only
locally but also in surrounding regions. These snacks
often reflect the local flavors and culinary traditions,
making them distinctive and sought after by visitors and
locals alike
13 Who will conduct Gaon Majha Udyog Foundation
diagnostic study along
with the credentials of
the organization/
institute / past
experience
14 Why / How chosen for All members in the cluster are untrained and semi-
study skilled. Training is required to be given to cluster
members for proper utilization of their resources and
achieving the higher profits by cost saving (due to
availability of CFC) and making aware of up gradation
and technological process instead of traditional
processes.
15 Selection procedure Yes
followed
EXECUTIVE SUMMARY
 EXECUTIVE SUMMARY

Sr. No. Particulars Description

M/s. TUMSAR GAON MAJHA MAHILA UDYOG
1 Name of the Cluster
ASSOCIATION
Tal: Tumsar, Mohadi Dist
2 Location Bhandara

Products Ginger and Garlic paste, Ginger and

3 Product Range Garlic oil, Ginger and Garlic powder

Existing - ₹ 2.50 crores

4 Turnover of the Cluster
Expected -₹ 40 crores
Existing Employment – 300 Expected
5 Employment
Employment – 2000
7 Budget for Soft ₹ 10.00 Lakhs
Interventions
₹ 995.00 Lakhs (HI)+ ₹ 10.00 Lakhs (SI)
9 Total Project Cost
=1005.00 Lakhs
Grant under MSI-CDP Scheme - ₹ 895
10 Means of Finance Lakhs
SPV Share - ₹ 110 Lakhs
1. Increase in the overall turnover of the cluster
by around 3 times of the existing turnover.
2. Increase in employment generation by around
2 times of the existing employment.
3. Emergence of specialized support service
Post Intervention providers and their active involvement in the
11 development process.
Scenario (Expected
Impact) 4. Improved access to financial capital for cluster
members.

The cluster is proposed to be developed under

MSI-CDP. The DIC is the Nodal agency. A SPV will
be formed and registered as Sec 8 Company
Cluster Management – (under section 8 of the Companies Act 2013 and
12
Post rule 8 of the Companies
Interventions (Incorporation) Rules, 2014) with Registrar of
Companies.
INTRODUCTION
 PREAMBLE

The garlic and ginger processing industry plays a crucial role in

transforming these two widely used and highly valued ingredients
into a variety of consumer-ready products. Garlic and ginger are not
only essential in kitchens across the globe due to their distinctive
flavors and health benefits, but they also hold cultural and medicinal
significance in many regions. The processing of these ingredients into
forms such as pastes, powders, oils, and extracts has made them more
accessible, convenient, and versatile for both consumers and food
manufacturers.
This industry is driven by several factors, including the increasing
demand for convenience foods, the growing awareness of the health
benefits of garlic and ginger, and the globalization of culinary tastes.
The industry has evolved significantly over time, from traditional
methods of drying and grinding to modern, large-scale processing
using advanced technologies that preserve the natural properties of
these ingredients.
Garlic and ginger, known for their anti-inflammatory, antioxidant, and
immune-boosting properties, are integral not only to culinary
applications but also to the wellness and pharmaceutical sectors. As
consumers continue to seek healthier, more sustainable products, the
garlic and ginger processing industry has adapted, introducing
organic, fair-trade, and eco-friendly options to meet changing
consumer preferences.
With a strong presence in regions like Asia, Africa, and Latin America,
the garlic and ginger processing industry has become a key player in
the global food and health markets, continually innovating to meet the
needs of a diverse and health-conscious population..
VISION
To become a leading global provider of high-quality, sustainably
produced ginger and garlic products, enriching culinary experiences
and promoting healthier living through the natural goodness of these
time-honored ingredients.
MISSION
Our mission is to process and deliver premium ginger and garlic
products, ensuring consistency, freshness, and flavor in every batch.
We aim to support both the food industry and home cooks by
providing accessible, innovative, and health-conscious solutions while
 maintaining ethical sourcing and sustainable practices.
VALUES
1. Quality: We are committed to delivering only the best products that
meet the highest standards of taste, safety, and freshness.
2. Sustainability: We prioritize environmentally friendly practices and
work with farmers who follow sustainable agricultural methods to
reduce our carbon footprint.
3. Innovation: We strive to innovate and adapt to emerging trends in
food processing, packaging, and customer needs, ensuring our
products remain relevant and competitive in a fast-changing market.
4. Integrity: We operate with transparency and honesty in all our
dealings, building trust with customers, partners, and stakeholders.
5. Health and Wellness: We are dedicated to promoting the health
benefits of garlic and ginger, offering products that support well-being
and are made with natural, wholesome ingredients.
6. Community Impact: We work to empower local farmers and
contribute to economic development by sourcing raw materials
directly from trusted suppliers and supporting fair trade practices.
METHODOLOGY
1. Sourcing: We partner with local farmers who cultivate garlic and
ginger using sustainable and organic methods, ensuring the highest
quality raw materials.
2. Processing: Using advanced equipment, we process garlic and ginger
into paste, powder, and other forms while retaining maximum flavor,
aroma, and nutritional value. Our methods ensure minimal waste and
maximize efficiency.
3. Quality Control: Every batch undergoes rigorous quality testing to
ensure consistency, safety, and purity. We employ state-of-the-art
technology to monitor production and maintain high hygiene
standards.
4. Packaging: We utilize eco-friendly packaging materials to reduce
environmental impact, ensuring our products remain fresh and retain
their peak flavor.
5. Distribution: We focus on efficient distribution networks to provide
timely deliveries, making our ginger and garlic products readily
available to customers around the world.
History and Background,
Turning Points
 History and Background of the Ginger and Garlic
Processing Industry
The ginger and garlic processing industry has rooted that trace back
thousands of years, as both ginger and garlic have been integral to
culinary traditions and medicine in many cultures. The history of
processing these ingredients into usable forms—such as pastes,
powders, and oils—has evolved significantly over time.
1. Early Uses and Traditional Processing:
o Ginger: Ginger, native to Southeast Asia, has been used for over
5,000 years, primarily for medicinal purposes. Ancient civilizations,
including the Greeks and Romans, recognized ginger’s digestive and
medicinal properties. In early times, it was dried, ground, or
preserved in various forms for use in cooking and medicine. Ginger
was traded along the ancient spice routes, with merchants in India
and China playing a major role in its distribution.
o Garlic: Garlic has been cultivated for over 6,000 years, with origins
in Central Asia and parts of Europe. Ancient Egyptians, Greeks, and
Romans valued garlic for its health benefits, particularly for its use as
an antibiotic and its ability to boost immunity. Like ginger, garlic was
traditionally processed through drying, fermentation, and grinding.
2. Industrialization and Modern Processing:
o The industrialization of the ginger and garlic processing industry
began in the 19th and early 20th centuries. The need for processed
ginger and garlic increased as global trade expanded and these
ingredients became staples in many kitchens worldwide.
o Increased Demand: The expansion of international trade networks,
the rise of convenience foods, and the growing popularity of various
cuisines in Europe, North America, and the Middle East in the 20th
century led to a surge in demand for ready-to-use ginger and garlic
products.
o Mechanization: With the advent of industrial machinery in the 20th
century, the processing of ginger and garlic became more efficient.
Mechanized drying, grinding, and packaging systems allowed for
large-scale production of ginger powder, garlic powder, and garlic
paste. This shift helped meet the growing demand of both domestic
and international markets.
o Globalization: As the world became more interconnected, the use of
ginger and garlic in packaged products (such as sauces, soups, and
spices) expanded. Convenience in the form of pre-processed garlic
and ginger paste became increasingly popular among home cooks
and chefs.
3. Technological Advancements:
o In recent decades, advancements in food preservation and
processing technologies, including vacuum sealing, freeze-drying,
and cold storage, have allowed ginger and garlic products to retain
their flavor, aroma, and nutritional value for longer periods.
o Automation: The rise of automation in processing plants has
improved product consistency and hygiene standards. Automated
systems ensure uniform grinding, paste-making, and packaging,
which are crucial for mass production and distribution.
o Packaging Innovation: Packaging innovations, such as resealable
pouches and air-tight containers, have helped extend shelf life and
make ginger and garlic products more accessible.

Turning Points for the Ginger and Garlic Processing

Industry
The ginger and garlic processing industry has undergone several key
turning points that have shaped its evolution and helped it adapt to
changing consumer demands and market conditions:
1. Introduction of Convenience Foods (Mid-20th Century): The rise
of the processed food industry in the 1950s and 1960s marked a
major turning point for the ginger and garlic processing industry.
With the growing preference for convenience and ready-to-use
ingredients, there was an increasing demand for ginger and garlic in
 paste and powder forms, leading to the mass production of these
products. The widespread use of ginger and garlic in pre-packaged
sauces, ready-to-eat meals, and instant foods further solidified the
industry’s growth.
2. Health and Wellness Trends (Late 20th Century - Early 21st
Century): The growing global interest in health and wellness in the
late 20th century had a profound impact on the ginger and garlic
processing industry. Consumers began to prioritize fresh, natural
ingredients with potential health benefits, such as anti-inflammatory
properties and digestive aids. This led to a shift toward organic and
preservative-free products. Additionally, the popularity of ginger and
garlic in dietary supplements, teas, and natural health products led
to a diversification of processing methods, including freeze-drying
and encapsulation.

3. Emergence of Sustainable and Ethical Sourcing (21st Century):

As sustainability and ethical sourcing practices became more
important to consumers, the ginger and garlic processing industry
responded by prioritizing environmentally friendly practices and
fair-trade initiatives. Producers began seeking out sustainably grown
ginger and garlic, with an emphasis on supporting local farmers and
reducing the environmental impact of processing. This also led to the
increased popularity of organic and eco-friendly ginger and garlic
products in the marketplace.
4. Innovation in Packaging and Storage (21st Century): In recent
years, innovation in packaging technology has become a crucial
turning point for the industry. Advances in vacuum-sealing, modified
atmosphere packaging (MAP), and glass jars have allowed ginger and
garlic products to maintain freshness and shelf life for longer periods
without the need for chemical preservatives. Consumers increasingly
demand products with clean labels, which has led to greater
innovation in the way ginger and garlic products are packaged and
marketed.
5. Globalization and Cultural Influence (21st Century): The ongoing
globalization of food culture, particularly through social media and
food influencers, has contributed to the worldwide popularity of
ginger and garlic-based cuisines. International exposure to Asian,
Middle Eastern, and African cuisines has fueled demand for ginger
and garlic in pre-processed forms, further driving growth in the
 industry. The need to cater to global markets, including catering to
regional preferences, has led to the introduction of a wider variety of
ginger and garlic products, from pastes to extracts to frozen
varieties.
In summary, the ginger and garlic processing industry has
experienced significant changes over the years, from traditional
methods of drying and grinding to modern mass production
techniques. The key turning points, such as the rise of convenience
foods, the focus on health and wellness, and the adoption of
sustainable practices, have all contributed to shaping the industry
into what it is today—an essential part of the global food supply
chain that continues to evolve and innovate.

OVERVIEW, SIZE, GROWTH OF GARLIC AND GINGER

PROCESSING

The garlic and ginger processing industry encompasses the

transformation of raw ginger and garlic into various processed forms,
such as pastes, powders, oils, and extracts. These processed products
are used in a wide range of applications, including culinary, health and
wellness, and cosmetic products. The industry is integral to many food
production sectors, particularly in the preparation of sauces, soups,
spice blends, marinades, and ready-to-eat meals.
The main products derived from the processing of garlic and ginger
are:
 Garlic Paste and Powder
 Ginger Paste and Powder
 Ginger Oil and Extracts
 Garlic Oil and Extracts
 Frozen Ginger and Garlic Products
The industry is driven by the growing demand for convenience foods,
health-conscious consumers, and the increasing popularity of both
ginger and garlic in global cuisines, especially those of Asian, Middle
Eastern, and African origin.
Size of the Garlic and Ginger Processing Industry
The garlic and ginger processing industry is a significant part of the
global food processing sector. The industry includes a range of
operations from small-scale local processing to large multinational
 companies involved in the mass production of processed garlic and
ginger products.
 Global Market Size: As of recent reports, the global garlic market was
valued at approximately USD 15 billion in 2023, and it is expected to
grow at a CAGR of 4% from 2023 to 2030. The ginger market, on the
other hand, is also a major sector, valued at about USD 5 billion
globally in 2023, with expected growth in the range of 5-6% annually
during the same forecast period. The processed products segment of
both garlic and ginger (including pastes, powders, and oils) represents
a significant portion of the overall market.
 Regional Insights: Asia-Pacific, particularly India and China,
dominates the garlic and ginger processing industry, as both regions
are the largest producers and consumers of these ingredients. India is
the world's largest producer of garlic and the second-largest producer
of ginger. Additionally, garlic and ginger processing is prevalent in
countries like the United States, the European Union, and other
regions, as the demand for processed foods and ethnic cuisines grows
globally.
Growth of the Garlic and Ginger Processing Industry
The garlic and ginger processing industry has experienced steady
growth over the past few decades and is projected to continue
growing. Key factors driving this growth include:
1. Rising Demand for Convenience Foods: The increasing consumer
preference for convenience foods, ready-to-eat meals, and pre-
packaged ingredients has been a major growth driver. Processed
garlic and ginger in the form of pastes, powders, and frozen products
have become essential in catering to the demand for quick, easy-to-
prepare meals.
2. Health and Wellness Trends: Both garlic and ginger are widely
recognized for their health benefits, including anti-inflammatory,
antioxidant, and immune-boosting properties. As consumers become
more health-conscious, they are increasingly turning to natural
ingredients like garlic and ginger. This has expanded the market for
garlic and ginger extracts, oils, and dietary supplements.
3. Increased Globalization of Cuisines: The growing interest in global
cuisines, particularly those of India, China, Southeast Asia, and the
Middle East, has increased the use of garlic and ginger in processed
forms. As international cuisines gain popularity, the demand for
ginger and garlic-based products in sauces, curries, soups, and spice
 mixes continues to rise.
4. Technological Advancements: Innovations in processing
technologies, including freeze-drying, vacuum-sealing, and cold-press
extraction, have improved the quality and shelf life of garlic and
ginger products. These advancements have helped companies scale up
production and meet global demand more efficiently.
5. Sustainability and Organic Trends: As consumers increasingly seek
organic and sustainably sourced products, the garlic and ginger
processing industry is shifting towards environmentally friendly and
ethically sourced production methods. This shift includes the growth
of organic garlic and ginger processing and the adoption of green
practices in farming and manufacturing.
6. Expanding Demand in Emerging Markets: As emerging markets
like Africa, Latin America, and Southeast Asia experience economic
growth, the demand for processed garlic and ginger products is also
rising. This trend is further supported by growing urbanization,
changing dietary patterns, and an expanding middle class in these
regions.
Challenges and Opportunities for Growth
While the garlic and ginger processing industry is experiencing
growth, several challenges and opportunities exist:
 Challenges:
o Supply Chain Issues: The garlic and ginger industry is vulnerable to
weather fluctuations, crop diseases, and geopolitical challenges. For
instance, droughts or pests can significantly affect crop yields,
impacting both raw material availability and costs.
o Price Volatility: Prices for garlic and ginger can be volatile due to
supply chain disruptions, fluctuations in production levels, and
changes in global demand.
Opportunities:
o Product Diversification: Companies have the opportunity to
diversify their product offerings by creating value-added products,
such as garlic and ginger-based health supplements, sauces, snacks,
and beverages.
o E-commerce Growth: The rise of e-commerce platforms has opened
up new distribution channels for garlic and ginger products, allowing
small and large producers to reach a global customer base.
o Sustainability Initiatives: There is a growing market for eco-friendly
and organic garlic and ginger products. By investing in sustainable
 farming practices and environmentally friendly processing, companies
can tap into a more environmentally conscious consumer segment.
Conclusion
The garlic and ginger processing industry is poised for continued
growth, driven by changing consumer preferences, the global demand
for convenience foods, and increasing awareness of the health benefits
of these ingredients. As technology advances and new markets
emerge, there are substantial opportunities for innovation,
particularly in the organic and sustainable product segments.
However, industry players will need to navigate challenges such as
supply chain fluctuations and competition from substitutes to ensure
long-term success.

Characteristics of Garlic and ginger processing

The characteristics of garlic and ginger processing reflect the
unique qualities of both ingredients and the methods used to
transform them into various consumer-ready products. Processing
these aromatic roots requires careful handling to preserve their
flavors, nutritional value, and health benefits while ensuring the
final product is safe and convenient for use in food and other
applications. Here are some key characteristics of garlic and ginger
processing:
1. Freshness and Flavor Preservation
 Garlic and Ginger Flavor: One of the most important aspects of
processing garlic and ginger is retaining their distinct, pungent, and
spicy flavors. This is achieved through gentle handling and specific
processing techniques, such as freezing, vacuum-sealing, or freeze-
drying, which help maintain the raw flavor while extending shelf
life.
 Aromatic Compounds: Both garlic and ginger contain sulfur
compounds (like allicin in garlic and gingerol in ginger) that
contribute to their distinctive smells and health benefits. Proper
processing techniques ensure these compounds are preserved,
particularly in fresh and minimally processed products like pastes
and oils.
2. Nutritional Retention
 Vitamins and Minerals: Garlic and ginger are rich in vitamins (e.g.,
vitamin C, B6) and minerals (e.g., manganese, calcium, potassium).
Effective processing methods aim to retain these nutrients by using
low-heat techniques or cold-processing methods.
 Bioactive Compounds: Both garlic and ginger are prized for their
bioactive compounds, such as antioxidants and anti-inflammatory
agents. Advanced processing technologies like freeze-drying or
cold-press extraction help maintain these compounds, ensuring
that the health benefits of garlic and ginger are preserved in the
final product.

DISTRICT MAP
CLUSTER SCENARIO
 BASIC INFORMATION

Maharashtra State Industrial Cluster Development Programme

(MSICDP)has been announced by Department of Industries,
Government of Maharashtra for the upgradation of Micro & small
Industries especially operating from D & D+ Industrial zones in
Maharashtra. Under the scheme financial assistance of maximum
80% of project cost with a ceiling of Rs.10 Crore will be provided by
Government of Maharashtra for setting up need based Common
Facility Center (CFC) for the Cluster.

The Financial Assistance will be upto90 % in case cluster having 100

% SC/ST units or 100% units of women entrepreneurs. The
financial assistance could be given considering the requirement of
the particular Industrial cluster and pertinent policy of Govt. of
Maharashtra.

Ginger and garlic processing Dist. Nagpur a group of Ginger and

garlic processing manufacturers has decided to take advantage of
this Scheme & approach District Industries Center (DIC) Nagpur,
Govt. of Maharashtra with their initial proposal.

After assessing the requirement, District Level Cluster Co-

Ordination Committee (DLCCC) under the Chairmanship of General
Manager, DIC. Nagpur Govt. of Maharashtra has selected Ginger and
garlic processing Cluster at Nagpur to be developed under MSI-CDP.

About Cluster
o M/s Ginger &Garlic Processing is located in the Katol, Narkhed
,Nagpur District in Maharashtra.
o The major products of cluster are Ginger &Garlic

o Processing Unit etc. and other domestic Ginger &Garlic

Processing which are sold in nearby Talukas. Few units are
engaged in manufacturing of Ginger & Garlic Processing item.

o Existing turnover of the cluster is ₹ 1.5 Crores (approx.) which

is expected to increase to ₹ 4 Crores (approx.) after set up of
CFC.

o Currently there are 43 units gathered providing 300 employees,

out of which 250 employees are directly and 50 employees are
indirectly employed with the cluster. The number of
employments is expected to increase to 500.

o The Cluster is using traditional methods of production due to

lack of awareness of modern processes. Also due to non-
availability of common facilities like testing lab, etc. there are
some quality issues which needs to be taken care of. Further,
Training is required to be given to the cluster members
involved in the production process to enhance their skills for
making optimum utilization of resources available to them.

o The cluster is proposed to be developed under MSI-CDP. The

DIC is the Nodal agency. A SPV is formed and registered as Sec 8
Company (under section 8 of the Companies Act 2013 and rule
8 of the Companies (Incorporation) Rules, 2014) with Registrar
of Companies. The registration will be carried out with 20
members. The SPV will be strengthened to manage the cluster
activities in sustainable nature after the project implementation
is over.
 Cluster Units:
There is total 60 units involved in production of various Ginger
&Garlic Processing. All units are micro units and registered under
MSME.

o Employment:
The cluster employs around 300 persons directly and 50 persons
indirectly.
o Investment in Plant & Machineries:
The total investment in Plant & Machineries of the cluster is
around ₹ 1005 Lakhs
o Turnover:
The total turnover of the cluster is ₹ 2.5 Crores (approx.).
o Export:
At present the cluster has no export opportunities but there is a
good scope for the cluster to export different Ginger &Garlic
Processing.
 DIMENSION OF THE CLUSTER
As mentioned above the cluster is spread over Katol,Narkhed Taluka of District Nagpur.

The Table below shows categorization of the units came together to

form SPV:

No. of No. of
No. of
Sr. No. No. of Total No. units by Units by
Units by
No Type of Unit of Small Of Units Women Minoriti
SC/
. Mic Units Entrepren es
ST
ro eurs
Uni
ts

Ginger 00 60 00 00
01 6 60
&Garlic 0
Process
ing
PHOTOS OF UNITS IN CLUSTER
NATIONAL AND INTERNATIONAL SCENARIO
 National Scenario: India:
India is the largest producer of both garlic and ginger in the world, and
it plays a dominant role in the global garlic and ginger processing
industry.
 Production: India is the world’s largest producer of ginger, accounting
for about 35-40% of global production, and the second-largest producer
of garlic after China. Key producing states include Kerala, Karnataka,
and West Bengal for ginger, and Gujarat, Uttar Pradesh, and Madhya
Pradesh for garlic.
 Processing Industry: The domestic processing of garlic and ginger in
India focuses on making value-added products such as garlic and ginger
paste, powder, and oil. Small-scale and cottage industries dominate this
sector, although large processing units are expanding.
 Domestic Consumption: Garlic and ginger are staple ingredients in
Indian cuisine, integral to the preparation of curries, chutneys, pickles,
and other traditional dishes. The demand for processed ginger and
garlic products is rising as consumer preferences shift toward ready-to-
use, convenient products. This has led to increased production of ginger
garlic paste and powder for both domestic and international markets.
 Export: India is a major exporter of processed ginger and garlic
products, particularly to markets in the Middle East, Southeast Asia, and
Western countries. However, the export of fresh garlic and ginger faces
challenges such as price fluctuations and supply chain issues due to the
perishable nature of these crops.
 Government Support: The Indian government has introduced various
initiatives to promote the processing industry, including subsidies for
food processing units, export incentives, and the development of
agricultural infrastructure. Programs to support organic farming and
sustainable practices are also gaining traction.
China:
China is the world’s largest producer and exporter of garlic, and it holds
a significant share of the global ginger production as well.
 Production: China is the dominant player in the global garlic market,
 producing around 80% of the world’s garlic. The major garlic-growing
regions in China include Shandong, Henan, and Xinjiang. In terms of
ginger, China is the second-largest producer after India, with major
cultivation areas in Yunnan and Guangxi.
 Processing: China has a highly developed garlic and ginger processing
industry, with a significant presence of both small-scale and large
processing units. These units focus on producing garlic paste, powder,
oils, and ginger extracts. With vast manufacturing capabilities, China
leads in the export of these processed products.
 Domestic and Global Demand: Garlic and ginger products are essential
in Chinese cuisine and have a widespread domestic market.
Additionally, China exports processed products to numerous countries
worldwide, including the U.S., Japan, and Europe. Its vast network of
processing plants, cheap labor, and efficient logistics contribute to its
dominance in the global market.
 International Scenario:
Global Demand and Trends:
The international garlic and ginger processing industry is growing
steadily, driven by increasing demand for convenience foods, ethnic
cuisines, and health-conscious products. There are several key trends
shaping the international market:
1. Growing Health Awareness: Both garlic and ginger are highly valued
for their health benefits, such as anti-inflammatory properties, immune-
boosting effects, and digestive health benefits. As consumers
increasingly seek natural and functional foods, the demand for garlic
and ginger in processed forms (such as supplements, extracts, and oils)
is growing worldwide.
2. Rise of Convenience Foods: The global demand for ready-to-use
ingredients, such as ginger and garlic pastes, powders, and frozen
products, is rising. Convenience foods are becoming a significant driver
for garlic and ginger processors, as these ingredients are essential for
creating quick, flavorful meals.
3. Ethnic Cuisine Popularity: The global popularity of Asian, Middle
Eastern, and Latin American cuisines, in which ginger and garlic are
staples, is fueling the growth of the processing industry. Processed
garlic and ginger products, such as pastes and powders, are increasingly
used in commercial food production, including in the restaurant and
fast-food sectors.
4. Sustainability and Organic Products: Consumers are showing a
growing preference for organic and sustainably sourced garlic and
ginger products. This trend is prompting suppliers to invest in organic
farming practices and environmentally friendly processing methods to
cater to the demand for cleaner, greener food options.
Export Markets:
 Europe and North America: Both garlic and ginger products are widely
consumed in Europe and North America. The market for processed
garlic and ginger (including pastes, powders, and oils) has expanded
with the increase in demand for international cuisine and natural health
products. The U.S. and Europe are major importers of processed garlic
 and ginger, especially from countries like China, India, and Thailand.
 Middle East and Africa: The Middle East and North Africa (MENA)
regions are important export markets for garlic and ginger, with
increasing consumption due to both culinary and medicinal uses. In
these regions, ginger is also used extensively in beverages like tea, while
garlic is a crucial component of traditional dishes.
 Southeast Asia: Southeast Asia is a significant consumer and producer
of ginger and garlic. Many countries in the region have a long tradition
of using fresh and processed forms of these ingredients in their daily
diets. Additionally, Southeast Asia is a growing exporter of processed
garlic and ginger, especially to markets like Japan, Korea, and China.
Global Challenges:
 Price Volatility: Prices for raw garlic and ginger can fluctuate
dramatically due to factors like crop yields, weather conditions, and
geopolitical issues, making it difficult for processors to maintain stable
pricing for their products.
 Supply Chain Disruptions: The processing and global trade of garlic
and ginger are often subject to supply chain disruptions, particularly in
light of factors like transportation bottlenecks, pandemic-related labor
shortages, and seasonal variations in crop production.
 Quality Control and Safety Concerns: Ensuring product quality and
safety in the global market is crucial. The use of pesticides and
contamination in garlic and ginger imports can be a concern for
consumers and governments, requiring stringent quality control
measures and certifications (e.g., organic certification) to ensure
compliance with international standards.
Conclusion:
The garlic and ginger processing industry, both nationally and
internationally, is characterized by a growing demand for convenience,
health benefits, and ethnic cuisine products. Major producers such as
India, China, and Thailand dominate the global market, but emerging
players are also tapping into the growing demand for processed ginger
and garlic. While challenges like price volatility, supply chain issues, and
quality control persist, the industry's future looks promising with
continued growth driven by health trends, sustainable practices, and
increasing consumer interest in global flavors.
Future Of Garlic and Ginger Processing
Industry
Future of the Garlic and Ginger Processing Industry
The garlic and ginger processing industry is poised for significant growth in
the coming years, driven by various factors such as health-conscious
consumers, the increasing demand for convenience foods, innovations in
processing technologies, and the global popularity of both ingredients in
culinary and medicinal applications. Below are some key trends and
developments that are expected to shape the future of the garlic and
ginger processing industry:
1. Growing Demand for Health and Wellness Products
Both garlic and ginger have long been associated with numerous health
benefits, such as anti-inflammatory, antioxidant, and immune-boosting
properties. As consumers become more health-conscious, the demand for
natural, functional foods and supplements is expected to increase,
benefiting the garlic and ginger processing industry.
 Nutraceuticals and Supplements: Garlic and ginger are already used in

various dietary supplements and nutraceutical products, ranging from

capsules and tablets to oils and extracts. With the increasing interest in
plant-based and natural health remedies, the demand for processed garlic
and ginger in the form of supplements is expected to rise.
 Herbal and Medicinal Products: The rising popularity of herbal

remedies, teas, and natural health products will drive further demand for
ginger and garlic extracts, oils, and powders. This segment will likely see
significant growth as more consumers turn to these ingredients for their
purported health benefits.


2.Demand for Convenience and Ready-to-Use Products

The increasing preference for convenience foods, driven by busy lifestyles

and the growing trend of home cooking, will continue to fuel the demand
for processed garlic and ginger. Consumers are increasingly looking for
products that are easy to use without compromising on quality or flavor.

 Garlic and Ginger Pastes: Ready-to-use garlic and ginger pastes are
already popular, and this trend is expected to continue, as they offer
convenience without requiring time-consuming preparation. The demand
for frozen garlic and ginger pastes in convenient packaging (such as cubes
or pouches) is likely to grow.
 Pre-Mixed Spice Blends and Sauces: Garlic and ginger are key
ingredients in many spice blends, marinades, and sauces. The demand for
ready-made sauces, dressings, and spice mixes incorporating these
ingredients will drive growth in the processed product market.
 Packaged Frozen Products: Frozen ginger and garlic products will likely

see expanded availability, offering consumers the ability to store and use
these ingredients without worrying about spoilage.
 The future of the garlic and ginger processing industry looks promising,

with opportunities for growth driven by health trends, technological

advancements, sustainability, and evolving consumer preferences. As the
global demand for convenience, health-oriented, and sustainably sourced
products continues to rise, processors will need to innovate and adapt to
meet these changing demands. By focusing on quality, convenience, and
sustainability, the garlic and ginger processing industry can capitalize on
emerging trends and continue to thrive in the years to come.
CORE CLUSTER ACTORS
 Raw Material Suppliers
The raw materials for garlic and ginger processing are, of course, the
fresh garlic and fresh ginger roots, along with any additional ingredients
that may be used for flavor enhancement, preservation, or packaging. The
quality and type of raw material directly influence the flavor, nutritional
content, shelf-life, and overall quality of the final processed products.
Here's an in-depth look at the key raw materials involved in the
processing of garlic and ginger:
Repairs & Maintenance Personnel
The services of Repairs and Maintenance personnel plays a supportive
role in the cluster. This mainly includes repairs of the tools and
machineries, servicing the machineries, modification, and assembly.
These services are locally available.
Supporting Institutions
There is a well-established network of support institutions and
development functionaries aimed to address the critical issues of the
cluster. Some important Institutions / Organizations are as follows:
Tools and Machinery Suppliers
The processing of garlic and ginger involves a series of steps that convert
raw materials into usable, value-added products like pastes, powders,
oils, and extracts. Depending on the scale of production (small-scale or
industrial), the equipment used can vary from manual tools to large
automated machinery.
District Industries Centre, Nagpur (DIC)
The DIC was set up under Central Scheme in the year 1978 in order to
provide single window facilities to the entrepreneurs at each district in
the country. The DIC, Nagpur is working under the Department of
Industries, Govt. of Maharashtra and implements the Central & State Govt.
policy & programmes at district level for the development of Industries.
The DICs have linkages with the cluster units. The powers to implement
the Schemes are completely decentralized and are vested with the
District Industries Centers for effective delivery mechanism at district
level. Besides, the DICs are the first link of the industry – Government
interface for resolving various issues of industry for its all-round.

Ministry of Micro, Small and Medium Enterprises (MSME)

MSME provides a great support to the various clusters in India
through its MSE-CDP. In October 2007, the erstwhile cluster
development scheme ‘Small Industries Cluster Development
Programme (SICDP)’ was renamed as ‘Micro and Small Enterprises –
Cluster Development Programme (MSE- CDP)’. The Ministry of Micro,
Small and Medium Enterprises (MSME), Government of India (GoI)
has adopted the cluster development approach as a key strategy for
enhancing the productivity and competitiveness as well as capacity
building of Micro and Small Enterprises (MSEs) and their collectives in
the country. A cluster is a group of enterprises located within an
identifiable and as far as practicable, contiguous area and producing
same/similar products/services. The essential characteristics of
enterprises in a cluster are: Similarity or Complementarily in the
method of production, quality control and testing, energy
consumption, pollution control, etc. Similar level of technology and
marketing strategies/practices channel for communication among the
member of the cluster Common Challenges and opportunities. A
comprehensive MSE-CDP is being administered by the office of
development commissioner {MSME}, The Ministry of MSME
 Similarity or complementarily in the methods of production, quality
control and testing, energy consumption, pollution control, etc.
 Similar level of technology and marketing strategies/practices
 Channels for communication among the members of the cluster
 Common challenges and opportunities. A comprehensive MSE-CDP is
o being administered by the office of Development

Commissioner (MSME), the Ministry of MSME

o Lead Bank, Finance and Working Capital
Central Bank of India is the Lead Bank for financial assistance.
 There is a good network with Co-operative Banks so the day-
to-day funding
Directorate of Industries, Government of Maharashtra

It is a state level organization. The Directorate has a presence in every

district, through the District Industries Centers. These offices are the
focal point at the district level to facilitate industrial development in
coordination with the other departments/agencies of the government.
The plan schemes and the activities under various policies of the state
government are implemented by the District Industries Centers. The
power to implement the Schemes are completely decentralized and
are vested with the District Industries Centers for effective delivery
mechanism at district level.
Besides, the DICs are the first link of the industry – Government
interface for resolving various issues of industry
for its all-round and healthy growth.
The Regional Offices supervise and monitor the activities of the
District Industries Centers. They are mainly responsible for effective
coordination between the Industry and Government
Departments/Agencies for speedier industrial development.
BUSINESS PROCESS
 Ginger and garlic Processing
Main Raw Material Required:
01. Ginger
02. Garlic
03. Preservative

Procure raw materials – The food product

development must ensure that all the procured raw
ingredients meet the desired quality parameters.
2. Cleaning – Ginger and garlic should be thoroughly
washed.
3. De-Skinning – The next step is to de-skin ginger and
garlic using skin peeling machine
4. Crushing & Pulping – Use crushing machine to crush
the de-skinned ginger and garlic. The crushed material
is then put into a pulping machine to obtain a paste of
uniform consistency. Add required quantity of turmeric,
salt, water and remaining powder ingredients.
5. Adding Preservatives – Transfer the material into a stainless-steel
vessel and add preservative to it. This is done to enhance the shelf life of
the finished product.
6. Packaging – The product is vacuum packed into pouches or other
suitable packaging material.
 Machinery for Garlic and Ginger Processing

The processing of garlic and ginger involves a series of steps that convert raw
materials into usable, value-added products like pastes, powders, oils, and
extracts. Depending on the scale of production (small-scale or industrial), the
equipment used can vary from manual tools to large automated machinery. Below
is an overview of the tools and machinery used at various stages of garlic and
ginger processing:
1. Cleaning and Sorting Machinery
Before processing, it’s essential to clean and sort the garlic and ginger to remove
dirt, debris, and any damaged or substandard pieces.
 Washing Machine:
o Used to wash fresh garlic bulbs and ginger rhizomes. These machines often use
high-pressure water jets to clean dirt and impurities from the surfaces of the raw
materials.
o Types: Brush washers, rotary washers, or ultrasonic washing machines.
 Sorting Machine:
o Sorting machines help separate high-quality garlic and ginger from damaged or
overripe ones. These machines can use sensors or manual sorting based on size,
color, or condition.
o Types: Vibrating conveyors, air classifiers, or manual sorting tables.

2. Peeling and Skin Removal Machines

Garlic and ginger need to be peeled before further processing, especially when
creating products like garlic paste or ginger paste.
 Garlic Peeling Machine:
o Peels garlic cloves by either using abrasive surfaces or mechanical peeling
mechanisms.
o Types:
 Mechanical Peeling Machines: Use friction to remove the skin.
 Air Peeling Machines: Use air pressure to loosen and remove the skin.
 Ginger Peeling Machine:
o Removes the skin of ginger rhizomes. Machines can use abrasive rollers or
scrapers to peel the ginger, reducing manual labor and increasing efficiency.
o Types: Scraper-based peelers, abrasive peelers, or steam peeling machines (using
 steam to loosen the skin).
3. Grinding and Crushing Machinery
After peeling, the next stage in the processing of garlic and ginger is grinding or
crushing to create pastes, powders, or other products.
 Garlic Grinder/Crusher:
o A device used to crush garlic cloves into a paste or fine mash. Grinders help
release the natural oils and flavor compounds in garlic.
o Types: Hammer mills, blade grinders, or rotary crushers.
 Ginger Grinder/Crusher:
o Used for grinding peeled ginger into fine paste or pulp. The machinery can be
used to create ginger juice, which is then used in ginger extracts or concentrates.
o Types: Hammer mills, wet grinders, or colloid mills (for finer paste).
 Blenders (For Paste Creation):
o High-speed blenders are used for blending garlic and ginger into smooth pastes.
These blenders ensure uniform consistency and smooth texture.
o Types: Industrial blenders or high-shear mixers.
4. Drying and Dehydration Equipment
For products like garlic and ginger powder, drying is an essential step to remove
moisture and extend shelf life.
 Dehydrators:
o These are used for drying garlic and ginger to produce powdered forms. The
drying process is critical to preserve flavor, nutrients, and ensure long-term
storage.
o Types:
 Tray Dryers: Used for drying garlic cloves and ginger slices at a low temperature
to preserve nutrients.
 Rotary Drum Dryers: Used for large-scale drying, typically for ginger and garlic
slices.
 Freeze Dryers: More advanced equipment for dehydrating that preserves the
flavor and nutrients better than conventional drying methods.
 Oven or Hot Air Dryers:
o These are common for dehydrating both garlic and ginger to produce powders.
They use heated air to remove moisture from the raw material.
o Types: Hot air dryers, tunnel dryers, and tray dryers.
5. Grinding Mills and Pulverizes
Once dried, the garlic and ginger must be ground into powder. This requires
specialized grinding mills that break the dried material into fine particles.
 Grinding Mills:
o Mills that grind dried garlic or ginger into powder. They are designed to handle
the hardness of garlic and ginger and produce a consistent fine powder.
o Types: Hammer mills, ball mills, or air classifier mills.
 Pulverizes:
o These machines are specifically designed to pulverize or crush dried ginger and
garlic into very fine powders.
o Types: Micro-pulverizes, fine grinders, or impact mills.
6. Oil Extraction Machinery
Garlic and ginger oils are produced by extracting the essential oils from these
ingredients. The extraction process varies depending on the desired oil type
(garlic oil, ginger oil, or mixed essential oils).
 Cold Press Oil Extractor:
o Used for extracting garlic and ginger oils by pressing the raw material without
using heat, preserving the oil’s natural properties.
o Types: Screw presses or hydraulic presses.
 Steam Distillation Units:
o Common for extracting essential oils from garlic and ginger. Steam distillation
involves steaming the plant material and condensing the steam back into liquid,
separating the essential oils.
o Types: Steam distillation units or fractional distillation columns.
 Solvent Extraction:
o In some cases, solvents may be used to extract oils, though this is less common for
garlic and ginger due to the desire for more natural products.
7. Pasteurization and Sterilization Equipment
To ensure the safety and longevity of processed garlic and ginger products,
pasteurization or sterilization is required.
 Heat Exchangers:
o Used for pasteurizing garlic and ginger paste to kill harmful bacteria and extend
shelf life.
 Autoclaves:
o Sterilization vessels that use high-pressure steam to sterilize garlic and ginger
products, ensuring they are safe for consumption and free from pathogens.
8. Packaging Machinery
Once the garlic and ginger products are processed, they need to be packaged
properly to ensure freshness, convenience, and shelf stability.
 Filling Machines:
o These machines fill containers (such as jars, pouches, or bottles) with processed
garlic and ginger products like paste, powder, or oils.
o Types: Volumetric filling machines, piston fillers, or gravity fillers.
 Sealing Machines:
o Sealing machines ensure that packages are securely sealed, protecting the
contents from contamination and moisture.
o Types: Heat sealers for pouches, induction sealing machines for jars.
 Labeling Machines:
o Used for labeling the packaged products with brand information, nutritional facts,
and other details.
9. Freezing and Cold Storage Equipment (for Fresh Products)
If processing involves frozen garlic or ginger (such as frozen garlic cubes or
paste), specialized freezing equipment is required.
 Blast Freezers:
o Used to rapidly freeze garlic or ginger paste, maintaining the integrity and flavor
of the product.
 Cold Storage Units:
o To store frozen or chilled garlic and ginger products, cold storage units are
essential, ensuring that the products remain at the desired low temperature.
Conclusion
The machinery and tools required for garlic and ginger processing depend on the
type of product being produced (paste, powder, oil, etc.) and the scale of the
operation. Cleaning, peeling, grinding, drying, and packaging are the primary
stages of garlic and ginger processing, and specialized machinery is used at each
step to ensure high efficiency, consistency, and quality of the final product.
Advances in technology continue to make these processes more efficient, offering
processors the ability to meet growing consumer demand for high-quality, value-
added garlic and ginger products.
Machinery
 GAP ANALYSIS
The gaps identified in the cluster during the study are as below:

 Now a days there are number of Ginger and garlic processing

 at Katol, Narkhed and facing following problems

 Non availability of Multi machine for making required critical shape

products.

 Non availability of modern Machine causes similarities in thickness does not

match

 Firstly, the COVID-19 pandemic has severely impacted Ginger and garlic
processing, with a sharp decline in demand, crashing prices, and reduced
investment in plant

 Cluster beneficiaries required to witness & undergo Soft Intervention phase

so as to acquire necessary inputs with respect to Capacity Building,
Technology Up gradation, Market Development assistance &
strengthening associations.

 Non availability of wider market access. Need to create website of cluster

for e-commerce and to increase customer base and enhance capacity of
cluster to cater the increasing Demand.
 To address the issues & concerns creation of State of Art Common Facility
Centre (CFC) consisting of awala processing machine types include
DISTRIBUTION CHANNEL
DISTRIBUTION CHANNEL
ANALYSIS OF BUSINESS
OPERATIONS
STRATEGIC INTERVENTION

Advanced Trainings are recommended in order to provide

services of high skilled, updated labor for providing the quality
services to the customers. Ginger and garlic processing cluster
at Katol,Narkhed has enough growth potential, provided
strategic intervention is made in these key areas. The key areas
in which the strategic interventions are needed are as below:

o Programme on Quality Standards

o Building Awareness
o Awareness programme on advance Technology
o Awareness programme on Training Centre
o Awareness on Export Procedures and Documentation
o Market Development Programme with
Advance Marketing techniques
o Banking, Taxation and Accounting Procedure
o Programme on Personality Development,
Management and Communication Skill
o Exposure Visit to Cluster
o Designing common website and brochure.
o Developing and activating the Business Development
Services (BDS)
o Infrastructure improvement - Resource Management.
o Skill Development and Training
These are discussed in detail in the Action Plan.
 LINKAGES

BACKWARD LINKAGES
1. Ginger and garlic processing
2. Plant and Machinery Suppliers

FORWARD LINKAGES
3. Retail chain of outlets of Ginger and garlic processing
4. Distribution center associated with the retail chain of outlets.

QUALITY CHECK
Quality control is a set of steps or guidelines designed to guarantee
that a product or service meets certain performance standards. The
goal of quality control at this cluster is to ensure that an item
meets the needs and specifications of the consumer population.
Good quality control will also help us to more efficiently navigate
production processes to cut down on mistakes and waste and
maximize profit.
BRANDING
The basic needs of customers can be catalogued to only a handful
of properties and can be defined as, “A customer requires a
product that reflects quality, is durable, is likeable and fits his
desired price point”. However simple the definition may sound; the
interpretations of this statements could be infinite, and brands
have to tweak their strategies to cover most of the permutations of
the same.
To tackle the customer needs, brand of this cluster will offer a
promise of belief that they are purchasing quality every time they
make a transaction with the brand and gives birth to branding.
SPV has decided to sale products under brand name. As consumer
buy the product according to brand.
CLUSTER MAPS
PRE-INTERVENTION MAP
POST INTERVENTION MAP
SWOT ANALYSIS
 SWOT ANALYIS

Strengths:
1. High Demand: Both ginger and garlic are essential ingredients in
various cuisines worldwide, leading to consistent demand.
2. Health Benefits: Both ginger and garlic are known for their
medicinal properties (e.g., anti-inflammatory, antioxidant), which
enhances their marketability in the health-conscious consumer
sector.
3. Diverse Product Range: The industry can produce a variety of
products such as ginger powder, garlic paste, ginger garlic paste,
dried ginger, and garlic oil, catering to different consumer needs.
4. Export Potential: Both ginger and garlic are exported globally,
especially to markets like the Middle East, the United States, and
Europe, providing strong growth prospects for international sales.
5. Natural and Organic Trends: With the rise in demand for natural
and organic products, ginger and garlic processing fits well into
these consumer trends.
6. Sustainability Potential: Ginger and garlic can be cultivated in
various climates, providing a reliable supply chain, particularly in
countries like India, China, and Indonesia.

Weaknesses:
1. Perishability: Both ginger and garlic are perishable products,
which require efficient processing and preservation methods to
avoid spoilage.
2. High Processing Costs: Processing involves labor-intensive steps
(peeling, grinding, drying), which increases production costs.
3. Supply Chain Vulnerabilities: The reliance on a specific
geographic region for raw material (e.g., India for garlic, China for
 ginger) can lead to supply disruptions due to climate issues, pests,
or political factors.
4. Quality Control Issues: Maintaining consistent quality during
processing can be challenging, especially for small-scale producers
who may lack advanced technology or expertise.
5. Competition: The industry faces significant competition, both
from domestic producers and international markets, driving price
pressures.

Opportunities:
1. Value-added Products: There’s potential to create high-value
processed products such as organic ginger and garlic powders,
pickles, sauces, and oils, which can command premium prices.
2. Rising Health Consciousness: Increasing awareness of the health
benefits of ginger and garlic could expand demand for both fresh
and processed forms.
3. E-commerce Growth: Online retailing provides a platform for
selling niche products such as organic or specialty ginger and
garlic-based products to global markets.
4. Expanding in Emerging Markets: Growing middle-class
populations in developing economies are becoming more
interested in processed food and spices, creating new markets.
5. Research and Development: Innovations in preservation
techniques (e.g., freeze-drying or advanced packaging) can help
improve shelf life and quality, opening doors to new product
categories.
6. Sustainability Initiatives: As consumers and companies alike
focus on sustainable sourcing, there is a growing opportunity to
develop eco-friendly practices in both production and packaging.

Threats:
1. Climate Change and Environmental Risks: Adverse weather
conditions (droughts, floods, or pests) can negatively impact the
raw material supply, leading to price volatility.
2. Fluctuating Raw Material Prices: The price of raw ginger and
garlic may fluctuate due to supply-demand imbalances, increasing
production costs.
3. Regulatory Challenges: Stringent food safety regulations and
quality standards in key markets (e.g., the European Union or the
U.S.) may create barriers to entry or increase operational costs.
4. Substitution by Alternatives: Competitors or substitutes such as
artificial flavorings or synthetic ingredients may reduce demand
for fresh or processed ginger and garlic in certain segments.
5. Supply Chain Disruptions: Global supply chain issues, such as
logistics bottlenecks, political instability, or pandemics, could lead
to delays or price hikes in sourcing raw materials or distribution.
6. Health Risks and Safety Concerns: Contamination or
adulteration of processed products, such as pesticides or microbial
contamination, could harm the brand’s reputation and lead to
regulatory scrutiny.

Strengths:
7. High Demand: Both ginger and garlic are essential ingredients in
various cuisines worldwide, leading to consistent demand.
8. Health Benefits: Both ginger and garlic are known for their
medicinal properties (e.g., anti-inflammatory, antioxidant), which
enhances their marketability in the health-conscious consumer
sector.
9. Diverse Product Range: The industry can produce a variety of
products such as ginger powder, garlic paste, ginger garlic paste,
dried ginger, and garlic oil, catering to different consumer needs.
10. Export Potential: Both ginger and garlic are exported
globally, especially to markets like the Middle East, the United
States, and Europe, providing strong growth prospects for
international sales.
11. Natural and Organic Trends: With the rise in demand for
natural and organic products, ginger and garlic processing fits well
into these consumer trends.
12. Sustainability Potential: Ginger and garlic can be cultivated
in various climates, providing a reliable supply chain, particularly
in countries like India, China, and Indonesia.

Weaknesses:
6. Perishability: Both ginger and garlic are perishable products,
which require efficient processing and preservation methods to
avoid spoilage.
7. High Processing Costs: Processing involves labor-intensive steps
(peeling, grinding, drying), which increases production costs.
8. Supply Chain Vulnerabilities: The reliance on a specific
geographic region for raw material (e.g., India for garlic, China for
ginger) can lead to supply disruptions due to climate issues, pests,
or political factors.
9. Quality Control Issues: Maintaining consistent quality during
processing can be challenging, especially for small-scale producers
who may lack advanced technology or expertise.
10. Competition: The industry faces significant competition, both
from domestic producers and international markets, driving price
pressures.

Opportunities:
7. Value-added Products: There’s potential to create high-value
processed products such as organic ginger and garlic powders,
pickles, sauces, and oils, which can command premium prices.
8. Rising Health Consciousness: Increasing awareness of the health
benefits of ginger and garlic could expand demand for both fresh
and processed forms.
9.E-commerce Growth: Online retailing provides a platform for
selling niche products such as organic or specialty ginger and
garlic-based products to global markets.
10. Expanding in Emerging Markets: Growing middle-class
populations in developing economies are becoming more
interested in processed food and spices, creating new markets.
11. Research and Development: Innovations in preservation
techniques (e.g., freeze-drying or advanced packaging) can help
improve shelf life and quality, opening doors to new product
categories.
12. Sustainability Initiatives: As consumers and companies
alike focus on sustainable sourcing, there is a growing opportunity
to develop eco-friendly practices in both production and
packaging.

Threats:
7. Climate Change and Environmental Risks: Adverse weather
conditions (droughts, floods, or pests) can negatively impact the
raw material supply, leading to price volatility.
8. Fluctuating Raw Material Prices: The price of raw ginger and
garlic may fluctuate due to supply-demand imbalances, increasing
production costs.
9. Regulatory Challenges: Stringent food safety regulations and
quality standards in key markets (e.g., the European Union or the
U.S.) may create barriers to entry or increase operational costs.

10.Substitution by Alternatives: Competitors or substitutes such

as artificial flavorings or synthetic ingredients may reduce demand
for fresh or processed ginger and garlic in certain segments.

11.Supply Chain Disruptions: Global supply chain issues, such as

logistics bottlenecks, political instability, or pandemics, could lead
to delays or price hikes in sourcing raw materials or distribution.
 12.Health Risks and Safety Concerns: Contamination or
adulteration of processed products, such as pesticides or microbial
contamination, could harm the brand’s reputation and lead to
regulatory scrutiny.

STRATEGIC INTERVENTION

 DSR is based on the information & data generated from sample

Cluster units through Field Survey

 Interaction with, Officials from local District Industries Center,

Lead Bank Manager (LDM) & Local Institutes

 Collected Secondary information from various sources like Digital

sources, Web sites, Books etc.

 DSR covers the present Scenario of the Cluster, the difficulties

faced by the Micro & Small units in the Cluster. The Gaps at
present, Problems faced by entrepreneurs etc.

 Proposed Action Plan for Soft interventions containing the

program for Capacity Building, Technology up gradation, Market
Development, Networking etc. & need of Common Facility Center
for capacity enhancement.
SOFT INTERVENTION PROGRAM

The Soft Intervention Program is aimed towards Networking,

Capacity Building, Technology upgradation & Market Development
of Ginger and Garlic Processing Cluster at Kotal,Narkhed. The Ginger
and Garlic Processing from this region is in the process of forming
Special Purpose Vehicle (SPV) to carry out soft interventions in
awala processing Cluster, Katol, Narkhed under MSI- CDP Scheme of
Department of Industries, Government of Maharashtra.
The programmer will include awareness program, workshop &
seminar related to branding, packing, marketing, technology
upgradation & advance techniques, etc. field visit & visits to Ginger
and Garlic Processing exhibitions.
HARD INTERVENTION PROGRAM

Hard Interventions required to be undertaken in the Cluster

through Common Facility Center (CFC)

 Common Designing Center

 Common Seasoning & Treatment Facility
 Common Processing Center with
IMPACT MEASUREMENT &
ANALYSIS
SR NO ISSUE QUALITATIVE IMPACT
01 Technical Feasibility Common Facility Centre will be
Outdated Production Process equipped with modern machines,
Lack of Technical Know-how learning center and support facilities.
Inadequate Facility Support
02 Economic Feasibility Expert Team can be deployed to
High-Cost Inputs ensure the proper financial discipline
Uneconomic way of executing the order and cost control through scale of
economies.
Underestimation of financial
requirements
03 Implementation Support Infrastructure will be
Lack of Basic and support infrastructure available.
04 Production Professional Management Team
Production Management, Poor Quality will implement proper
Control, Poor Capacity utilization, Poor utilization of resources.
inventory management, High Wastage
05 Labour Management Economic Work practices and
Inefficient handling of labour problems adherence to labour laws will be
Lacked skilled/trained manpower ensured.
06 Marketing Management Institutional Sales can be initiated.
Dependence on Small or single group of Big customers can be influenced
customers positively with capacity backup.
Erroneous Pricing Policy
Lack of Market Research
07 Financial Management State sponsored facility center will
Inadequate Working capital take care of capital investments.
Paucity of fixed capital to raise the technology
standard
08 Administrative Management Proper Administrative Mechanism
can be installed for centralized
Lack of Professionalism
control.
Lack of Feedback Management
Incompetency
09 Infrastructure Bottlenecks Bulk Common Purchasing and Storage
Facility will resolve the issue.
Irregular supply of Raw Material
Transportation Bottlenecks
10 Political Situation United Group of Industrialist can act
as pressure groups.
No Representation in Government for
pursuance
 A

ACTION PLAN
 Proposed Action Plan of Soft Intervention Programme in Akot Gaon Majha Mahila Udyog
Association Mini Dal Mill, Ta. Akot, Telhara, Dist. Akola

Sr. Description Funding Details (Rs. In Lakhs) No. of Target fixed

No. Beneficiarie
Total GoM Beneficiaries' s
Grant Contribution
Amount
1 Trust Building & It would create awareness
Building Awareness amongst Entrepreneurs about
Programme 1 the advantages of Cluster
approach & result into trust
building amongst them.

2 Technology Up- Cluster units will acquire the

gradation & detail knowledge about best
Quality Control, Manufacturing Practices and
Marketing and technologies, Know how about
Packaging Advanced Machineries
Techniques.
Quality Control & Cluster units will acquire the detail
Value Addition knowledge about quality
manufacturing practices and
technologies, and regulatory
procedures in Chickpea And namkeen
manufacturing

3.a Study Tour Visit

3.b Visit to
INDUSTRY
4 Visit to Will understand the advance
Machineries required at CFC in
cluster
5 DSR preparation Will help in identifying
Cluster Gaps &
Interventions
required overcoming these
gaps.
Local traveling To meet inhouse expenses
cluster of in-house for local travelling for cluster
staff & members.
telecommunication
expenses
7 Administrative To meet administrative
expenditure for the expenses/office
CDE requirements for regular
/ DIC working of DIC in respect
to
cluster scheme.

Total
CONCLUION
From the various elaborate study and analysis of the cluster, we conclude that:
The competitive challenges faced by the cluster would require interventions under
MSI-CDP from the government of Maharashtra. There are certain areas where the
government and the cluster association would need to put efforts together
preferably with a well-designed action plan in order to enhance productivity &
competitiveness within the enterprises.
The technology up gradation is the key for breeding competitiveness in the cluster.
The government should incentivize the expenditure incurred on research and
development by the micro and small enterprises of the cluster.
Cluster Beneficiaries need to undergo various programs like Awareness about
Cluster approach, Technology Up gradation, Common Brand Promotion & Export
Marketing etc. in order to gain marketing development assistance.
 Annexures

Annexure No. Description

I List of Cluster Members

Details of SPV /List of Entrepreneurs who
II have consented to implement the cluster
programme, certified by G.M. DIC
DSR Validation Report with minutes and list
III of the participants attendance sheet and
photographs of validation programme
IV DSR Scrutiny by G.M., DIC
Minutes of DLCCC along with
V
recommendation of G.M., DIC
Proposed Soft Intervention Action Plan as
VI
per prescribed norms
Name of the Technical Institute, Expert
VII
Person
Certification of G.M., DIC regarding
A
eligibility of proposal under MSI-CDP
Photos
 ANNEXURE-I

LIST OF CLUSTER MEMBERS

 ANNEXURE-II
DETAILS OF SPV/LIST OF ENTREPRENEURS WHO HAVE
CONSENTED TO IMPLEMENT CLUSTER PROGRAM
Attendance sheet of Validation Meeting
Photos of validation meeting
ANNEXURE-IV
 DSR SCRUTINY BY G.M., DIC

DATE OF SUBMISSION OF DSR BY

PROMOTING ORGANIZATIONS TO DIC
WHETHER PROPOSAL UNDER (MSE-
2 MSICDP
CDP/MSICDP)
IF UNDER MSICDP, THEN PLS.
 SPECIFY
(A)ZONE OF THE CLUSTER COVERAGE
(A) ZONE - D+ INDUSTRIAL ZONE
AREA
(D, D+, NO INDUSTRY, NAXAL
3
AFFECTED AREA)
(B) YES, THE PROPOSAL FULFILS THE ELIGIBILITY
CRITERION OF MSICDP
(B)WHETHER THE PROPOSAL
FULFILS THE ELIGIBILITY
CRITERION OF
MSICDP
RECOMMENDATION OF DISTRICT
4 LEVEL CLUSTER COORDINATION YES
COMMITTEE
COMMENT WITH THE FOLLOWING DETAILS
NO OF PERSONS PRESENT:
DATE:
5 VALIDATION OF DSR
TIME:
VENUE:

WHETHER MINUTES OF VALIDATION

6 YES
ARE ENCLOSED
7 NAME OF THE PROPOSED CLUSTER M/s. TUMSAR GAON MAJHA MAHILA UDYOG
ASSOCIATION.
8 LOCATION Tumsar, Mohadi , DIST. Bhandara
COVERAGE AREA OF THE CLUSTER,
NAME OF THE SUB AREAS THAT ARE
9 THE CLUSTER SPREAD OVER TEHSIL
CONSIDERED UNDER CLUSTER
PROPOSAL
TYPE REGISTERED UNREGISTERED
NO. OF UNITS UNDER CLUSTER MICRO 60 00
10 SMALL 00 00
COVERAGE AREA
TOTAL 60 00
 NAME OF THE SPONSORING AGENCY
11 GAON MAJHA UDYOG FOUNDATION
(ASSOCIATION/SPV)
CLUSTER SECTOR (E.G. TEXTILE,
12 Garlic and Ginger Processing
ENGG., FOOD PROCESSING ETC.)
13 TOTAL TURNOVER OF THE CLUSTER RS. 2.5 CRORES
DIRECT: 300NOS.
14 EMPLOYMENT
INDIRECT: 50 NOS.
DIRECT: NIL
15 TOTAL EXPORT
INDIRECT: NIL
ALL TYPES OF POTATO CHIPS & SNACKS
PRODUCTS/SUB PRODUCTS
16 CLUSTERPRODUCTS VIZ: Skin Care Cream
MANUFACTURED IN THE CLUSTER

NO. OF UNITS GIVEN CONSENT OF

60 NOS. (ANNEXURE II)
17 PARTICIPATION IN THE CLUSTER
PROGRAMME

18 CLUSTER AGE CLUSTER IS OPERATING SINCE LAST 01 YEARS.

TUMSAR Garlic and Ginger Processing CLUSTER IS
FORMED BY MINORITYCATEGORY ENTREPRENEURS
SINCE LAST 01 YEARS.
19 CLUSTER HISTORY ENTREPRENEURS ARE ENGAGED IN THE
PRODUCTION OF SNACKS PRODUCTS.
SPECIALTY OF THE CLUSTER
ALL THE UNITS PRESENT IN THE CLUSTER ARE
20 (MICRO/WOMEN/MINORITY/RURAL
MICRO UNITS.
ORIENTED CLUSTER), PLS. SPECIFY
BRIEF MANUFACTURING
21 PROCESS/MAJOR ACTIVITIES OF THE REFER
UNITS
GAPS IDENTIFIED:
GAPS IDENTIFIED IN THE DSR - USE OF TRADITIONAL PRODUCTION PROCESSES
(RELATED TO TECHNOLOGY, QUALITY, DUE TO NON-AVAILABILITY OF ADVANCED
ENERGY CONSUMPTION PATTERN, MACHINERIES
22
POLLUTION EMISSION, PROCESS - TRANSPORTATION ISSUE
MODIFICATION, MARKETING, EXPORT, - STORAGE FACILITY
SKILL DEVELOPMENT ETC (1-2) - BRANDING AND MARKETING
- SKILL DEVELOPMENT AND TRAINING
23 INTERVENTION PROPOSED IN THE
DSR
SOFT INTERVENTION (SI) YES
(PLS MENTION WHETHER SOFT TOTAL COST - RS. 10.00 LAKHS
A
INTERVENTIONS ARE PROPOSED WITH GOM CONTRIBUTION - RS. 9.00
GRANT SUPPORT) LAKHS SPV CONTRIBUTION - RS.
1.00 LAKHS
WHETHER CLUSTER BENEFICIARIES
I) HAVE CONSENTED 10% YES
CONTRIBUTION FOR SI
ORGANIZATIONS/INSTITUTES
II) PROPOSED AS RESOURCE AGENCIES IN
THE DSR
WHETHER ACTION PLAN FOR SI GIVEN
III) YES
IN THE DSR
TOTAL PROJECTED COST OF PROPOSED
IV) RS. 10.00 LAKHS
SOFT INTERVENTION
B HARD INTERVENTION
IF HARD INTERVENTION (CFC) IS
I) SUGGESTED AS FURTHER YES
INTERVENTIONS
COMMON DESIGNING CENTRE
IF YES, BRIEF OF PROPOSED CFC COMMON SEASONING & COMMON PROCESSING
II)
COMPONENTS CENTRE

WHETHER SUGGESTED ANNEXURES

24 YES
WITH UPDATES ARE ENCLOSED
I COPY OF DSR YES
II ANNEX-I: PROFILE OF THE CLUSTER YES
ANNEX-II: DETAILS OF SPV/LIST OF
ENTREPRENEURS WHO HAVE
III CONSENTED TO IMPLEMENT THE YES
CLUSTER PROGRAMME, CERTIFIED BY
G.M. DIC
ANNEX-III: THE LISTOF THE
PARTICIPANTS IN PRESCRIBED
IV YES
FORMAT WHO ATTENDED THE
VALIDATION PROGRAMME
ANNEX-IV: SCRUTINY OF PROPOSAL
V YES
BY G.M. DIC
 ANNEX-V: VALIDATION REPORT WITH
VI YES
MINUTES & PHOTOGRAPHS
VII ANNEX-VI: MINUTES OF DLCCC YES
ANNEX-VII: PROPOSED SOFT
VIII YES
INTERVENTION ACTION PLAN
ANNEX-VIII: NAME OF TECHNICAL
INSTITUTES, PERSONS PLANNED TO BE
IX YES
ASSOCIATED FOR TECHNICAL KNOW-
HOW & GUIDANCE
ANNEX-IX: COMMENTS OF
X YES
TECHNICAL/EXPERT INSTITUTE
ANNEX-X: COLLABORATIVE EFFORTS
XI UNDERTAKEN BY SPV, PROGRAMMES YES
TAKEN ETC.
ANNEX-XI: EXCLUSIVE THINGS IF ANY
ABOUT THE CLUSTER, CONCRETE
XII YES
STEPS TAKEN BY THE PROMOTERS,
NEW INITIATIVES ETC
ANNEX-A: CERTIFICATION OF G.M.
DIC REGARDING ELIGIBILITY OF
PROPOSAL UNDER MSICDP
XIII YES
*(APPLICABLE FOR THE PROPOSALS
UNDER GOMS MSICDP SCHEME
ONLY)
EFFECTIVE STEPS TAKEN BY
PROMOTERS TO IMPLEMENT THE
XIV
CLUSTER SCHEME UNDER MSE-CDP
TO CONFIRM COLLABORATIVE EFFORTS
RECOMMENDATIONS/OBSERVATIONS
OF DISTRICT LEVEL CLUSTER MEMBERS OF CLUSTER REQUIRED GOOD
XV
COORDINATION COMMITTEE TECHNICAL AND MARKETING KNOWLRDGE
(DLCCC)
A) DATE OF THE DLCCC
IT IS RECOMMENDED FOR SANCTION BEFORE STATE
B) DECISION OF DLCCC
LEVEL COMMITTEE
COMMENTS OF G.M. DIC WITH RESPECT TO FURTHER
ACTIONS/SUGGESTIONS/RECOMMENDATIONS:

DSR PREPARED NICELY WHICH COVERS ALL ASPECT OF CLUSTER GROUP AND THEIR REQUREMENT
FOR COMPETTIVENESS AND FURTHER DEVELOPMENT. IT IS ACCORDING TO MSICDP GUIDELINES
ISSUED BY STATE GOVT. CONSIDERING THE NECESSITY OF ENTERPRENEURS, IT IS RECOMMENDED
FOR SANCTION BEFORE STATE LEVEL COMMITTEE.

SIGNATURE
&
SEAL OF G.M. DIC
 ANNEXURE-V

MINUTES OF DLCCC ALONG WITH RECOMMENDATION OF G.M., DIC

 ANNEXURE-VI

PROPOSED SOFT INTERVENTION ACTION PLAN AS PER

PRESCRIBED NORMS
Sr. Description Funding Details (Rs. In Lakhs) No. of Target fixed
No. Beneficiaries
Total GoM Beneficiaries'
Grant Contribution
Amount
1 Trust Building & It would create
Building Awareness awareness amongst
Programme 1 Entrepreneurs about
the advantages of
Cluster approach &
result into trust
building amongst
them.

2 Technology Up- Cluster units will

gradation & acquire the
Quality detail
Control, Marketing knowledge about best
and Packaging manufacturing
Techniques. practices and
technologies, Know
how about advanced
Machineries

Quality Control &

Value Addition
3.a Study Tour

3.b Visit to

4 Visit to Industries Will understand the

advance Machineries
required at CFC in
cluster.

5 DSR preparation

6 Local traveling cluster To meet inhouse

of in-house staff & expenses for local
telecommunicatio travelling for cluster
n expenses members.
7 Administrative To meet
expenditure for the CDE administrative
/ DIC expenses/office
requirements for
regular working of
DIC in respect to
cluster scheme.

Total
 ANNEXURE-VI
NAME OF THE TECHNICAL INSTITUTE
 Dr. Panjabrao
Deshmukh Krishi
Vidyapith (PDKV)
 ANNEXURE-A

CERTIFICATION OF G.M., DIC REGARDING ELIGIBILITY OF PROPOSAL UNDER

MSI-CDP
PHOTOS