Tourism goes up the hills

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Kerala is hosting an investor meet after a gap of nine years. Emerging Kerala is conceived as a

global connect of people who have a stake in the development of the State. There will be businessmen, bankers, diplomats, consultants, academics, thinkers, journalists etc., converging in Kochi to figure out what is in store for the State in the years to come. They will help the government chart out a course that could secure our future. We believe that such events help attract attention of decision-makers to our State and the opportunities we offer. The perception of most industrialists of Kerala is limited to this: a beautiful State in which highly literate people live. Some may add Ayurveda also to it, period. Most are oblivious of the fact that Kerala has unmatched physical and digital connectivity. Our airports and ICTT have seldom been counted when people sitting in boardrooms chart out investment plans. By making some of them visiting us and understand the strengths that we have, we can hope for a better deal in the future.The meets also helps create a better image for entrepreneurship in the State. It’s a fact that Keralites are not known for great entrepreneurship within the State. We have very many reasons, and some of them may be valid. But the presence of the prime Minister and a host of dignitaries, who would obviously refer to entrepreneurship as the engine of growth for an economy, would definitely catch the imagination of a lot of yioung people in our State. Even while filling up application form for a job, or signing an acceptance letter form an MNC, they would think for a moment that being an entrepreneur was also a choice. Some of them would later come back to it. In this issue, we have highlighted the potential of five of the 26 focus sectors being presented in Emerging Kerala. We feel every sector holds potential, but these five can act as the bulwark. We are sure that the Kerala that is emerging will be a knowledge economy, making full use of the human resources that we have. Let’s be prepared for that.

Vol 2, Issue 8 September 2012

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Let entrepreneurship emerge

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ContentsCOVER STORY

30 Aiming high The government has identified 26 focussectors to be presented before investors at Emerging Kerala. Each of them has something unique that Kerala has to offer. However, there are certain sectors such as tourism, knowledge industry, IT, manufacturing and food processing on which the future economy of the State will be built on

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Contents

18 Mooing to prosperityThe women self groups form milk societies in villages and sell fresh milk in towns

The Other Side

50 Land for the tillerIt is time the government returned the farmland to the tiller

24 Piping it up

The wait is over. Kerala’s tryst with natural gas is all set to begin. It will change the way the State lives its life, for the better

21 The hills are alive The new law to allow diversion of part of plantation for other farm-related purposes and tourism activities will re-energise the tourism sector in the hilly regions of the State

27 Setting sailThe Centre has decided to relax the cabotage law for ICTT Vallarpadam. The move will help the terminal attract more cargo and international liners

48 Entrepreneurship, ahoy Kerala must start recognising, encouraging and celebrating entrepreneurship, writes S R Nair

52 Mind your spineSpine-related issues haunt a lot of professionals. Most of them originate in the sheer negligence of one of the most important parts of the body. It pays to take care of it

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While Kochi is getting ready to receive more investment across sectors including information technology, Infopark, which began it all, stands as a proof to the fast growth of the city. Infopark was launched in 2004 with a standard design module of about 1.25 lakh sq ft; by the end of 2012, the total built up area will be 4 million sq ft. The second phase of the project seeks to build 8 million sq ft. It hosts most top names in Indian IT industry including Tata Consultancy Services, Wipro, Cognizant Technology Services, Affiliated Computer Services, OPI Global, IBS Software Services and US Technology.

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After going through your magazine, I often wonder whether so much is happening in the industrial space of our State. I have returned to Kerala after more than 25 years of service in the armed forces. I have never got the impression that State would be able to match the development in other States. At best, I used to think that we shall do well in tourism and Ayurveda. Initiatives like that of the Coconut Development Board must be wholeheartedly welcomed, as it has the potential to change the economy of Kerala villages. It would also promote entrepreneurship among our young men and women

Lt Col JP George (Rtd),Kochi

I follow the news on Emerging Kerala that appear in your magazine. It is time Kerala made its advan-tages known to the while world through an appropriate means, and Emerging Kerala must fit that Bill. It looks like the government is well prepared to present itself before the investing community who will con-verge in Kochi. I am sure that there will be many successful industrial-ists attending the event, spread over three days. I request the authorities to create an avenue for our young entrepreneurs to meet and interact with them. It will sure inspire them to give their best at entrepreneur-ship.

M P Praveen, Kochi

Your magazine often covers the potential Ayurveda holds. How-ever, I am of the opinion that the State is not yet ready to welcome a big flow of tourist-patients to the

does not involve huge expenditures, and the result can be tracked with some precision, such strategies work, especially for low budget movies. I am sure that these filmmakers will be able to overcome the constraints of money and bring glory to the Malayalam cinema, once again.

Vinod Narayanan,Thiruvananthapuram

I carefully read the column of Mr S R Nair, in which he often illus-trates how technology can be a big booster for businesses. At the same time, I also get the feeling that the businessmen in Kerala are not open to the changes happening in the cyberspace. Is it that the people, despite their wide exposure to the world outside, do not allow technol-ogy to enter their premises? Do they think that such a move would make them lose control of their compa-nies? Don’t they understand that flat managements can act fast and right take decisions? They must take a cue from the examples that Mr Nair gives. That is the only way for them to be able to remain competitive and grow fast.

K V Babu,Kozhikode

State. There are hardly any big Ayurveda hospitals in the State which can accom-modate hundreds of foreign patients. On the other hand, Sri Lanka is making big investment in the sector, and are attract-ing more tourists there, though we claim that we are the cradle of Ayurveda. I suggest that the govern-ment study the Lankan model and see what we can adopt there. Unless we make timely movement, we will have to settle for the crumbs when our neighbor enjoys the big spread.

T Raman Menon,Thrissur

I have a complaint that Update seldom covers the manufacturing sector in Kerala. True, the State does not have big industries, but that does not mean that we are just a service sector economy. There are smart and nimble companies which do well in value-added manufactur-ing. The service sector, of course, creates a lot of jobs but the long-term sustenance of an economy must also factor in the health of the manufacturing sector also. If the media keeps its eyes shut on them, then there is no hope of them mak-ing it big.

Ramesh G,Thrissur

I follow your updates on the film industry. Of late, we celebrate a new wave in Malayalam cinema, which is made possible by the efforts of a generation of brave hearts. Kudos to them. I understand that they also follow very innovative marketing strategies, involving the new media including the social media. As it

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I Say!

It is true that TUs have changed their attitude. But

that is not enough to encourage people to come

to Kerala. Look at us. We came from Punjab to start

a venture here. Will a Keralite, who has been living abroad, willingly

invest in his home? Only when he doesn’t fear will

others be assured of a safe proposition in Kerala

Onkar S. Kanwar, chairman, Apollo Tyres,

about investing in Kerala

“Failure is the cost of success. It is akin to solving a prob-lem and getting a wrong answer. But that doesn’t mean that we quit, but instead we should reiterate ourselves and continue till we get right answer”

Esther Dyson, legendary angel investor, interacting with the budding entrepreneurs at Startup Village

“Akshaya, the Internet learning community initiative which started in one district and later moved to other 13 districts, has trained 1 lakh people by the end of 2011. IT at school is another initiative which we are trying to replicate in other places”

S Ramaprasad, director MNC OEM Business, Intel Technology India Pvt Ltd, outlining Intel’s plans to repli-

cate Kerala IT model

“This is going to be a meet where we once again try to showcase Kerala. We will have discussions on opportuni-ties, our strengths such as ITeS, healthcare, BT, tourism and hospitality and food-processing. It will be all about the potential and opportunities”Alkesh Kumar Sharma, KSIDC Managing director, on

Emerging Kerala 2012 meet

“I have a great respect for what Mahindra & Mahindra has been able to do. I also have a certain degree of sad-ness and shame that we have let that happen”

Ratan Tata, chairman, Tata Sons, addressing shareholders of Tata Motors.

M&M overtook Tata Motors in the car segment in the first quarter this fiscal

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mittee members and key spokesperson, as its CEO. Ms Mayer was in charge of Google’s location and local services, including

Google Maps, and was earlier responsible for the look and feel of Google’s most popular products, in-cluding that of its search page. The appointment makes Ms Mayer, 37, the youngest CEO of a Fortune 500 company. The number of fortune 500 firms with woman CEOs has now reached a record figure of 20.

Google driverless cars clock 3 lakh miles Google’s driverless cars have together completed more than 3,00,000 miles of on road testing, without even a single accident under computer control. The cars have successfully handled a wide range of traffic conditions. While testing, Google’s crew occupies the driving seats of the cars and will take control of the vehicle when needed. The vehicles will now be put to test on snow-covered roadways and made to handle other tricky situations.

Desperate China sees price warChina’s efforts to revive its slowing down economy are being thwarted by a huge build up of inventory of finished goods. The sit-uation is leading to price wars and manufacturers are desperately seeking export markets to sell products. Factories would be forced to cut produc-tion, forcing the economy to a grinding halt, if the situation fails to improve. China, the world’s second largest economy, has been a glimmer of hope for the recession hit world economy. A slowdown in China would push other recession hit economies around the world to a much deeper crisis.

Apple, the most valuable co everApple became the most valuable company in world history, with its market capitalisation touching $622 billion, as its share price struck a new high of $664.75 on Aug 20th. It dethroned Microsoft, which had a market capitalisation of around $619 billion in 1999. Apple’s share price was boosted by expecta-tions that the company is about to release new versions of iPhone, iPad and Apple TV.

Mayer, 37, is Yahoo CEOThe troubled internet giant Yahoo has roped in Ms Marissa Mayer, one of Google’s operating com-

recorded in 2006, at the peak of the bubble.

Gazprom shelvesArctic plansSoaring costs, falling de-mand in recession hit Eu-rope and cheap shale gas in the US have together forced Gazprom, the Russian energy giant, to drop its $15bn Shtokman gas production scheme in the Arctic region. Its Norwegian partner Statoil had a week before handed back its 24 per cent stake in the field and wrote off $336m citing commercial unviability. Shtokman, one of the world's largest gas fields with estimated reserves of 3.8 trillion cubic metres, was discov-ered a couple of decades back. The recent surge in gas prices had triggered interest in the field. But the discovery of shale gasin America has led to a fall in prices from $10 per million British thermal units to below $3 now, forcing Gazprom to shelve the scheme for now.

AT A GLANCE

World slows, Africa robust The International Mon-etary Fund (IMF) has cut its forecast for global economic growth and warned that the outlook could dim further if the Euro Zone did not quell its debt crisis. The IMF shaved its 2013 forecast to 3.9 per cent from the 4.1 per cent it projected in April. It left its 2012 forecast un-changed at 3.5 per cent. It said advanced economies would grow only 1.4 per cent this year and 1.9 per cent in 2013. It also trimmed its forecast for emerging economies, pro-jecting they will expand 5.9 per cent in 2013 and 5.6 per cent in 2012. Af-rica's growth is still seen at a robust 5.4 per cent this year and 5.3 per cent in 2013.

US housing looks upThe US housing market, whose collapse led to the economic crisis, is show-ing signs of a rebound. House prices showed an increase of 0.5 per cent on a year-on-year basis in June, the first increase in nearly two years, as per the S&P/Case-Shiller home price index. More good news followed with home sales rising by 10.4 per cent in July over the year ago period. The number of applications for building permits also hit a four-year-high in July. US home prices are still a third lower than the highs

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AT A GLANCE

India plans SEZ in Sri Lanka Trade Minister Anand Sharma has said a special economic zone is planned for Sri Lanka’s eastern port city of Trincomalee as part of an effort to double bilateral trade to $10 billion by 2015. India accounted for just 4.9 per cent of Sri Lanka’s total exports in 2011, led by machinery and equip-ment, animal fodder, spices and garments. Trade between the two countries was worth $4.8 billion in 2011.

CTS dislodges Infosys as no: 2

Cognizant Technol-ogy Solutions (CTS) has dislodged Infosys from the second position among the IT firms in the country, even as Infosys retained its slot as the sec-ond largest profit-making company. CTS posted revenues of $1.795 bil-lion for the June quarter against the $1.752 billion of Infosys. The company reported a 20.9 per cent year-on-year growth in revenue for the quarter compared to Infosys’s 4.8 per cent. Infosys, however, reported a quarterly profit of $416 million compared to Cognizant’s $252 mil-lion. TCS which clocked revenues of $2.73 billion for the quarter occupies

the top position.

60 lakh transactionsin 1 lakh ATMsThe 1,01,400 ATMs in the country conduct around 60 lakh transac-tions daily, which involves withdrawal of `1500 crore, says the National Payment Corporation of India. The State bank group has the most num-ber of ATMs (27,778) followed by Axis Bank (10,729) and HDFC Bank (10,079). Banks add around 1000 machines a month, as the country requires around 2 lakh ATMs.

ONGC hits oil in East and WestONGC has made a huge oil discovery off the West coast, in the D1 oilfield situated about 200 km west of Mumbai in the Deep Continental Shelf at a water depth of 85 to 90 metres. The find will catapult D1 to become the third largest field in western offshore after Mumbai High and Heera. The peak output of the field will jump from 36,000 bpd to 60,000 bpd as a result of the discovery. ONGC has also made a crude oil discovery in the Cauvery basin block in Tamil Nadu.

Expat Karl Slym to steer Tata MotorsKarl Slym has been appointed Managing Director of Tata Motors. Mr Slym, an alumnus of Stanford University and a Sloan Fellow, was the CEO of GM’s Indian arm

when the parent company declared bankruptcy in 2009. He is credited with steering the company successfully through those difficult times. Mr Slym will be respon-sible for Tata Motor’s Indian operations as well as those in Spain, South Africa and Asean.

Delhi-Agra drive is 2.5 hours now The newly-opened 165 km Yamuna expressway connecting Agra and Delhi has reduced the travel time between the cities to 2.5 hours. The `13,300 crore, six-lane ac-cess controlled expressway, built by Jaypee Infratech, provides an alternative to NH-2. The toll will be `2.10 per km for cars and jeeps, `6.60 for buses and trucks, `3.23 for minis and `10.10 for heavy vehicles.

RPower rushes to mine coal Even as the controversy over the allocation of coal blocks rages, Reliance Power Limited has an-nounced the start of coal production at two captive coal mines—Moher and Moher Amlohri exten-sion - of the Sasan power project. The company has been allotted 3 cap-tive coal mines for the 4,000MW project. A CAG report had said that the permission to use the surplus coal in the blocks had given RPower an undue benefit of `29,033 crore and recommended a review of the allocation of Chhatrasal mine.

Dreamliners to join AI fleet The government has given a formal go-ahead

to state-run Air India to start taking deliveries of 27 Boeing Dreamlin-ers. Deliveries of the 787 Dreamliners are caught up in a dispute between the US planemaker and India over compensa-tion to the carrier, after production of the planes was delayed by four years. The government will take a decision on the compen-sation package later.

McDonald’s goes vegetarian Fast food giant McDon-ald’s will open its first non-meat restaurant in Amritsar next year. The chain which runs about 300 branches in India has already in-troduced dishes which contain much less meat than in the chain’s stores in other countries. A vegetarian offering, McAloo Tikki burger, which features a fried potato patty, is responsible for a quarter of its Indian sales. The company has long customised menus to its host country. There are kosher McDonald’s in Israel and Buenos Aires, McBaguettes in France, McArabia pita-style sand-wiches in the Middle East and more.

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Kerala Travel Mart tobe held in September

The seventh edition of Kerala Travel Mart – KTM 2012 - the bien-nial event that showcases Kerala tourism will be held from 27th to 30th September, 2012, at Le Meridien Convention Centre, Kochi. The meet is today the largest gather-ing of the stakeholders in tourism in the State. It fa-cilitates meetings involv-ing Buyers, Sellers, Media, Government Agencies and others and gives the participants a first-hand experience of the destina-tion. KTM 2012 will have 108 Tables, 296 mod-ules and 12 Houseboat parking bays, for sellers to display their products. Around 900 buyers from 50 countries are other State in the country are expected to participate in the meet.

It’s complimentarypension from nowThe State government will implement contributory pension scheme for its employees who join the service from April, 2013. The existing employees and those joining before the set date will continue in the defined pension scheme. The govern-ment expects its pension

bill for 2012-13 to be `8178.05 crore. Salaries and pensions together will account for 51.8 per cent of the total revenue receipts of the State for the year, according to the State budget.

SBT, Federal Bank open 1000th branch Federal Bank and State Bank of Travencore, two Kerala-based banks, have crossed the 1,000-mark in their branch network. Federal Bank opened its 1000th branch in Mut-hoor, Thiruvalla while a ‘Gold Point' branch of the SBT started function-ing in Palakkad, touching the figure. ‘Gold Point' branches handle gold loans exclusively.

Birla plans training centre in Mavoor

Aditya Birla Group is planning to set up a vocational training centre on the premises of the defunct Mavoor Gwalior Rayons. The `100 crore centre will be set up by the Aditya Birla Centre for Community Initiatives and Rural Development. The centre plans to train 10,000 people a year in areas such as hospitality, computer related jobs, plumbing and electrical works.

IBS software to manage polish fleetPolish airline Eurolot has

zeroed in on ‘iFly Res’, a software developed by Kerala-based IBS to man-age passenger reservations of its entire fleet. “We strongly believe that iFly Res will help increase Eurolot sales during this period of expansion. We are sure that our passen-gers will benefit from the enhanced and customer-friendly booking process,” said Mateusz Kokosiski, Eurolot commercial man-ager.

NRK group to invest `2000 crorePravasi Investment Consortium & Equity Holding Ltd (PRINCE Holding), a Dubai-based grouping of non-resident Keralites, plans to invest over `2,000 crore in Kerala to set up IT/ITES business parks and life spaces projects. The Prince GATES (Global Advanced Technology Enabled Society) project is proposed to be set up in about 100 acres in Kochi. Prince GATES aspires to be a common platform for the NRI community, facilitating interaction, technology development, economic growth, and new venture creation. The project aims at using the knowledge of the return-ees for the benefit of their home states.

Apollo Tyres to invest `300 crore Apollo Tyres, the coun-try’s premier tyre maker, will invest `300 crore in its Kalamassery unit in Kerala in the next two years, making it an

export unit for industrial tyres. “We have inten-tions to build it truly as

an industrial tyre unit,” said Mr Onkar S Kanwar, chairman, Apollo Tyres. The unit will manufacture industrial tyres for export to Europe, South America and North America.

Trade Fair complex in Kakkanad The State government has approved a proposal to build a trade fair complex and convention centre of international standards at Kakkanad. The proj-ect will be developed by Kerala Industrial Infra-structure Development Corporation (KINFRA) in association with the India Trade Promotion Organisation. It would be located next to Infopark, SmartCity and the KINFRA Export Promo-tion Industrial Park. The project is expected to cost `112.5 crore. It would host industrial exhibitions, conferences, and trade fairs. KINFRA hopes to make the complex a per-manent venue for major trade fairs, industrial exhi-bitions and conferences in the region. A food court, shopping mall and VIP lounge would also be part of the complex.

AT A GLANCE

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Elias George, Principal Secretary (Power) will be the new Managing Director of KMRL. Chief Secretary K Jayakumar, Principal Secretary

(Finance) VP Joy and Principal Secretary (Water Resources) VJ Kurian will be the other members of the board. One more member will be nominated later.KMRL had to be restructured into a joint venture between the Central and State governments, after the centre gave its nod for the Kochi Metro and agreed to fund the project. The company director board was to have five representatives each from the Central and State govern-ments, with the Centre nominat-ing the chairman and the State, the managing director. The Centre had earlier nominated Mr Sudhir Krishna, Union Urban Develop-ment Secretary as the ex-officio chairman.

New alignment for Hill HighwayThe new alignment of the proposed hill highway from Kasaragod to Thiruvananthapuram has been almost finalised. The hill highway will extend from Nandarappadavu in Kasaragod district to Parassala in Thiruvananthapuram district. Num-bered as State Highway 59, it will pass through districts except Alap-puzha. The highway would have a standard two lane width of 18 to 24 metres. The 1,195-km long highway is expected to be the longest high-way in the State. The new alignment drawn up by NATPAC uses the ex-isting road network in the region to a large extent. The implementation of the hill highway will be taken up in stages, district-wise in view of the high costs of the project.

LNG terminal to go on stream in OctoberThe LNG terminal at Puthuype, Kochi will be commissioned in Oc-tober. According to Dr AK Balyan, managing director of Petronet LNG Ltd, 97 per cent of the works relat-ing to the project has been com-pleted. The company plans to com-mission the first two phases of the terminal, with a combined capacity of 5lakh mmtpa together. Industries in an around Kochi would start getting gas from next year, once the first phase is completed. In addi-tion, PLL also plans to supply gas in tankers to customers who do not have pipeline connectivity.PLL has offered to supply gas to industries in the region at a price

of $14/unit. But it is yet to finalise agreements with customers for the gas.

Railways takes over Kanjikode land The Railways has taken possession of 230.10 acres of land at Kanjik-ode near Palakkad to set up the coach factory. Mr Piyush Agar-wal, Divisional Railway Manager, Palakkad, handed over a cheque of `32.44 crore to Mr PM Ali Asgar Pasha, Palakkad District Collector, as the price for the land. Railways

will soon build a boundary wall and other basic support infrastructure designed to secure the land. It has also requested 90 more acres of land for the second phase of coach factory.The State government and the Rail-ways had in June jointly surveyed the land and demarcated the portion of land to be handed over to the railways for setting up the factory. It is hoped that the Railways would expedite the project as it has got possession of the land.

Master plan for Technocity readyThe master plan for Technocity – Phase 4 of Technopark, Trivandrum – is ready. The project will have 30-million-square-feet built-up space, entailing an investment of `5,000 crore. It will be developed

in the Public Private Partnership (PPP) Model.Technocity has been conceived as an integrated township, offering busi-ness spaces well as social infrastruc-ture. It would offer state-of-the-art IT/ITes infrastructure along with social infrastructure in the form of residential apartments, shopping malls, multiplexes, hospitals, hotels, educational institutions etc. It would also cater to high growth sectors other than IT such as biotechnol-ogy, nanotechnology, high-end manufacturing and research and development. Major companies such as TCS and Infosys, have already taken up space in the park.

Elias George is metro chiefThe State Cabinet has reconstituted the director board of the Kochi Metro Rail Limited (KMRL). Mr

PROJECT TRACKER

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Once upon a time, the Malayali depended on the neighbourhood milkman for his daily supply of milk. Then came MILMA with its packet milk, and pushed the

milkman into oblivion. Now they are making a comeback, at least in some villages, under the ‘Nature Fresh’ brand, under

the tutelage of Kudumbashree. And consumers don’t mind paying a premium, too!

Mooing to prosperityagRICulTuRE

The success of the scheme lies in reaching the homes of the consumers with farm fresh milk everyday

Aby Abraham GK

Some ideas are such. They refuse to die down even when sup-pressed for long. Their inherent

advantages make them a natural in their environment. Neighbourhood milk distribution is one such idea in Kerala.

Amply demonstrated by the likes of the Ponpulari Nature Fresh milk society in the remote hilly area of

Uppukunnu, 30 km off Thodupu-zha. The society sells milk branded as ‘Nature Fresh’ at `38 a litre. That too in Thodupuzha, where milk pouches from MILMA are available for `30 a litre.

So why do consumers prefer ‘Na-ture Fresh’ milk? “We get fresh milk within one or two hours of milking,” says Dr K Prabhakaran, a veterinary doctor, and one of the first customers of the society’s Nature Fresh milk.

“The milk is free from additives and preservatives that are added to pro-long its shelf life, adding to its qual-ity.” Mr KV Mathai, an Assistant Sub Inspector of Police, too, is vocal in his support for the initiative. “The milk we used to get earlier produced a foul smell when boiled. The Na-ture Fresh milk has no such prob-lem. It tastes good too,” says he. Mr Mathai even introduced the product to his neighbours, who too fell for its charms.

The good word has spread fast, and so has the demand. The society today supplies Nature Fresh milk to around 600 customers, up from the 28 customers that it had at the start two years back. “We are unable to meet the demand at present,” beams Ms Jalaja Ramakrishnan, president of the society.

The society has six members to-day who together raise 35 cows. Says Ms Tiji Ananthan, secretary of the society, who rears seven cows. “I sold milk worth `79,000 last month. The expenses come to around `35000, and the rest is profit.”

A hard earned one, though. The members themselves do all the work – from fetching fodder to milking, packing and processing and even marketing and distributing the milk. Their day starts at 4 in the morning

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and extends to late evening. The milk is distributed in 650 ml glass bottles; a full bottle is priced at `25 while half a bottle is sold for `15. The so-ciety members take turns to distrib-ute the milk in a jeep hired for the purpose.

But isn’t the price a bit high? The price is only for the milk that is sold under the Nature Fresh label (see box). “We charge a premium for the high quality Nature Fresh milk that we supply to households,” says Ms Tiji Ananthan. “We ourselves decide the price of the milk, based on our costs and the effort we put in. The producer should have the right to fix the price of the product.” The society also refrigerates and sells the milk that is produced in the afternoon to hotels for `27 a litre. Value-added products such as ghee and curd are also produced and marketed among the customers for milk.

The customers though seem will-ing to pay the price. Says Ms Anan-than, “We were apprehensive when we increased the price from `20 to `25 last September, but only three customers left us.” Adds Ms Ra-makrishnan, “Some people switched to other sources when the price was increased, but they soon came back,” For sure, the consumer is ready to pay extra for quality products.

It was out of desperation that the members of the society took to

rearing cows. The pepper wines that sustained the remote hilly region had succumbed to diseases. And people had to look for alternatives. The availability of fodder in the lush

The consumer is ready to pay extra for quality products. Only three

customers left us when we increased the price from

`20 to `25 last September but they came back later, said Ms Jalaja

Ramakrishnan, president of the society

Nature Fresh is a brand of the Ku-dumbasree Mission in the State. Fresh wholesome milk that small holder Kudumbasree diary entre-preneurs produce as per the speci-fications set by the mission can be sold under this brand.

Cows are to be reared in spe-cially-designed cattle sheds to ensure hygienic milk production. Each shed can hold 2-3 milch cows. The design gives cleanliness a priority; it has a specific area for catching the dung and the urine, without spoiling the whole shed. Ample ventilation and sunlight ensures that the shed remains dry, thereby preventing diseases.

Cleanliness is ensured in the milking process also. The shed has to be cleaned before milking. The utensils and glass bottles are also cleaned with detergents and hot water. The udders are cleaned with potassium permanganate lotion, and the hands with anti-septic lo-tion, before milking. Each cow is tested for ‘akiduveekkam’ by taking the first splash of milk in a strip cup and examining it for colour change or solid particles. Milk

from cows treated with antibiotics are distributed only after 72 hours of the last dose.

Once milking is completed, the milk is packed in glass bottles. The milk should also have at least 12 per cent solids and 3.5 per cent fat. Only 70 per cent of the milk produced in the morning is to be distributed as ‘Nature Fresh’ to ac-count for variability in production. The rest, and the production in the afternoon, are used for making val-ue added products. The milk from different cows are not mixed. A sticker with a number identifying the cow from which the milk came is placed on the bottle cap ensur-ing traceability of the milk. This is done to pinpoint the source, in case of problems, and to take cor-rective measures.

The bottles will be collected for delivery before 6 am everyday. The milk is then delivered to customers directly within 1-2 hours of milk-ing, latest by 7.30 am. Apart from self certification by the units, at least one sample of milk from each member will be sent for testing ev-ery month to ensure the quality.

Milk, nature fresh

Everything, from cattle shed to milk delivery schedule, is pre-planned

Fresh milk is filled in bottles, sealed and delivered before 7.30 everyday.

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green region opened up the possibil-ity of dairying. The grass was green and the milk pure and white, but the enterprise bordered on the red. “When we turned to rearing cows 6 years back, milk fetched us just `8 a litre,” recalls Ms Ananthan.

Then they formed the ‘Pulari’ neighbourhood activity group under the auspices of Kudumbasree. The group would collect the milk and sell it to a local milk society in the foothills for `13 a litre. That was all that the society could afford to pay them. Not surprising, when one con-siders the price fixed for milk by the government then and the inefficient distribution system that cost the farmers dear.

Kerala had tried to replicate the highly successful ANAND model of milk distribution, perfected in Gujarat – a State that has isolated villages, far away from the cities. A centralised system that collects milk from the interior villages, transports it in cans to cold storages and then in tankers to diary plants, where they are processed and packed for distribution in cities, was ideal for Gujarat. But Kerala, with its con-tiguous towns and villages, doesn’t need such a system that needs 3-4 days for reaching the milk to the end consumer. “In Kerala, it is pos-sible to supply fresh milk produced in the suburbs to the cities within 1-2 hours, eliminating the need for processing, storing, packaging and transporting milk that just adds to the cost,” says Dr GS Madhu, then District Mission Coordinator, Ku-dumbasree and currently Asst Direc-tor, Animal Husbandry Department and honorary consultant to Kudum-basree. In addition, big dairy farms are not practical in Kerala which has problems of land and labour avail-ability and waste disposal.

At the same time, Kerala which consumes 80 lakh litres of milk a day is importing a quarter of that from neighbouring States. It was this situ-ation which spawned the idea of a regional milk producing – distribut-ing system suited for the State. With this aim in mind the Kudumbasree Mission proposed setting up Nature

Fresh milk societies in different parts of the State.

Each society would be a joint li-ability group of 5-10 individuals in the neighbourhood, interested in cattle rearing and willing to adhere to the specified norms. The groups would have to bring in part of the investment on their own, while the Kudumbasree CDS would pro-vide them subsidies and help them avail bank loans. The group mem-bers would also be provided entre-preneurship training and technical training in cattle rearing at the rec-ognised centres of the Kerala Live-stock Development Board.

Nature Fresh units were first started in Edavetty Grama Panchay-ath in Idukki district in 2007. Units were also set up in Kannadi, Alagap-paNagar, Thidanad, Shasthamkotta, Poonkulam and Sreekaryam pan-chayaths. Inspired by the success, of the Ponpulari society, other units such as the ‘Deepam’ at Udumpan-noor and ‘Anugraha’ at Cheruthoni have also sprung up.

But after initial successes, many of these units fail to live up to their promise. The units need continued support till they establish them-selves and learn the tricks of the trade. A challenge that these units face initially is identifying custom-ers, that too in a contiguous area so that milk can be delivered within the prescribed time efficiently. At least 60 litres of milk have to be sold a day to breakeven. The units tie up with residence associations, circulate pamphlets, and conduct door-to-door campaigns to find customers.

“We have been able to increase our customer base from 15 to 52 in the two months of operations,” says Ms Shajitha Hameed of the Deepam society. She is confident of making profits soon.

But for the members of the Pon-pulari society, which sells around 400 litres of milk a day to 600 custom-ers, availability is the issue now, not marketing. “Once people start using the milk, more customers come in through word of mouth publicity,” says Ms Ramakrishnan. According to Ms Bindu Surendran, a member who has three cows, “We are not able to expand the number of cows as fetching enough grass to feed them is a problem. We will have to employ labourers if we are to increase the number of cows.”

“But that is not the idea,” says Dr Madhu. “The aim is to provide an income source to a large number of people through homestead farm-ing, rather than concentrating the production among a few. Increasing the number of cows will also lead to diseconomies of scale, and also affect the quality of milk. It is ideal if each member rears 2-3 cows.”

“One reason for our success is that we ourselves undertake all the activities from production to dis-tribution,” says Ms Ananthan. The society had earlier outsourced distri-bution, but the distributors wouldn’t turn up on special occasions such as Onam, when milk is a must for cus-tomers. The producers also suffered as they cannot avoid milking the cow. “Now we take turns to distrib-ute the milk and we haven’t avoided distributing milk even for one day,” says she. “The challenge though is to institutionalise the movement,” says Dr Madhu. He suggests formation of a producer company to support the small holder units. It could in-volve in activities such as fodder cul-tivation, cattle feed production, cat-tle-shed/biogas plant construction, production of value-added products, branding and market expansion.

Big dreams at that. But for now, you and me can at least hope to get milk in its pure form – fresh, natu-rally.

A centralised system for milk collection,

preservation and distribution is ideal for

States like Gujarat which are sparsely populated.

But Kerala, with its contiguous towns and villages, doesn’t need

such a system

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The new law to allow diversion of part of plantation will boost tourism

The plantations in Kerala, which have been facing tough times of late have got

a lifeline. The President of India has given the assent to the amendment to the Land Reforms Act, which al-lows 5 per cent of land in recognised plantations to be used for cultivating non-plantation crops and tourism.

The Bill was passed by the State Assembly in 2005, at the instance of the plantation owners as well as trade unions, as the sector was hit by a fall in prices of the produce. But it was kept in abeyance till now due to differences of opinion in the gov-ernment that came to power subse-quently. With the new government taking charge, the Bill was once again resurrected.

The State Cabinet, however, has decided to impose conditions on the use of land that would be diverted under the provisions of the Bill to prevent its misuse and damage to the environment. The permission to di-

vert land would be a one-time allow-ance. Even if the plantation is por-tioned among heirs or sold in parts, further diversions would not be per-mitted. The diverted land would also not be transferable.

As per the guidelines, 90 per cent of the five per cent land being di-verted will have to be used for mixed farming, dairying, cultivation of veg-etables, fruits, ornamental flowers, and medicinal plants, diversification of agriculture products, and setting up ancillary facilities. The cultiva-tion would have to be in the organic mode.

The remaining 10 per cent could be used for farm tourism, subject to a maximum of 10 acres. The construc-tion of tourism facilities on estates would have to be conducted in an environment-friendly manner, with-out altering the landscape. Buildings could have only up to two-storeys. It also allows renovation of bungalows and heritage buildings for tourism purposes.

The move is expected to revive the plantation sector which has been in trouble in the State for some time now. It would also provide a new employment avenue to the popula-tion of the region, which has been hit by the downturn in the planta-tion sector. The local people would be given preference for the new jobs that come up.

While it offers a lifeline for the plantation sector, the tourism in-dustry gets an additional segment

to showcase for the visitors. Kerala’s hills stations, where most of the plantations are, are already a favou-rite spot for tourists. However, lack of tourism infrastructure has limited its growth. With the new law, a plan-tation of at least 2000 acres can ear-mark 10 acres for tourism, on which new facilities can come up.

The farm tourism sector is also in for big growth as a result of the new law. There is already a move to convert the hill district of Idukki, which also hosts big plantations, an organic-only area. Should it happen, it would add to the tourist attrac-tions of the region.

To make sure that the move benefits the whole of the region, the State government has stipulated that a part of the income from farm tourism should be should be used for projects aimed at fulfilling their so-cial responsibility. The estates would be required to contribute part of the income to a biodiversity fund. A share would go for the welfare of the tribal population too.

The hills are alive

As per the guidelines, 90 per cent of the five per

cent land being diverted in a plantation must be

used for various forms of farming. The rest can be

used for setting up tourism facilities

Kerala’s hills stations, where most of

the plantations are, are already a favourite spot

for tourists.The new will help the creation of

more facilities

22

When my information changes, I change my opinion.What do you do, sir?

John Maynard Keynes (1883-1946)

The most influential economist of the 20th century.

23

Everybody knows that technology changes business. Today, the change flows through the net.

And the fact is, Kerala is the most networked State in India.

Information changes

Be updated

For subscription: 0484-2421916, +91 9947539023 or subscription@economic-update.in

----------------------------------------------------------------------------------------------- After all, our opinions ought to change!

Of the 978 Panchayats in Kerala, 99% have broadband connectivity.

24

The wait is over. Kerala’s tryst with natural gas is all set to begin. It will change the way the State lives its life, for the better

Piping it up

The pipelines are ready. GAIL India Ltd, the country’s pre-mier gas utility, has complet-

ed laying the pipeline to carry gas from Petronet LNG Ltd’s (PLL) ter-minal at Puthuvype to the industrial centre of Udyogamandal and further to Ambalamugal, on the outskirts of Kochi. The 43 km long pipeline – the first phase of the 1,114km long pipe-line being laid to evacuate liquefied natural gas (LNG) from the terminal was inaugurated on September 10th.

And the LNG terminal which will receive the gas shipments is ex-pected to be commissioned by the end of the year. The terminal which was to be completed in March this year got delayed a bit due to the de-cision to double its capacity from the 2.5mmtpa to 5mmtpa. Once work on the terminal is completed, com-panies in and around Kochi will be able to shift to gas – the cheaper and more environment-friendly fuel – for their energy needs.

It is estimated that around 700 industrial units in the region can make use of the gas. Initially though, only seven of them – BPCL Kochi Refinery, the divisions of FACT at Udyogamandal and Ambalamugal, the BSES power plant at Pathalam, Travancore Cochin Chemicals, Nitta Gelatin and Hindustan Organic Chemicals – will get gas through the pipeline.

GAIL has used a 30-inch pipe-line from Puthuvype to Udyogaman-dal, and an 18 inch pipeline from Udyogamandal to Ambalamugal. The LNG pipelines are laid in spe-

cially dug trenches which are more than a metre deep. In water bodies the pipelines are placed at a depth of 3 to 20 metres from the water bed. Unlike the usual practice where a 30 metre wide stretch is acquired for laying the pipeline, in Kerala, only a 20 metre stretch has been acquired. This was further reduced to 10 me-tres in the case of fertile agricultural land under intensive cultivation.

The gas pipeline passes through the land of different institutions such as the Cochin Port Trust, the Indian Navy, the Kerala State Electricity Board, KINFRA, Kochi Corpora-tion and even SmartCity, Kochi. In addition, 6km of the pipeline passes through the land belonging to pri-vate individuals. For laying the pipe-line, GAIL has acquired only the right to use the land, after paying the market rate. The ownership rights of the land remains with the land owner and they are free to sell it if needed. The agricultural land on which the pipelines are laid can be used again for farming. GAIL will also bear the expenses to make the land suitable

for agricultural use again.In the next phase, a 1,171-km

long pipeline will be laid from Alu-va to Koottanad, and from Koot-tanad to Mangalore and Bangalore. The pipeline will pass through Er-nakulam, Thrissur, Palakkad, Malap-puram, Kozhikode, Kannur and Kasaragod districts in the State. The work on the 505 km stretch from Kochi to Mangalore will start soon. Industries on the route of the pipe-line could tap gas through feeder lines. The industries in the proposed Kochi-Coimbatore industrial corri-dor are expected to benefit from the availability of gas once the pipeline is completed. PLL also plans to supply gas in tankers to customers who do not have a pipeline connection.

In addition, a 120km-long Ko-chi-Kayamkulam sub-sea pipeline is also being planned to supply gas to the thermal power plant of National Thermal Power Corporation. The pipeline would be extended to the Thiruvanathapuram in future, ensur-ing gas availability across the length of the State.

Natural gas occupies 24 per cent of the global energy basket, as against just 9 per cent in India. Its use in the country has been limited by avail-ability, but with huge reserves iden-tified in different parts of the world and the emergence of ships which carry it in liquefied form, availability is not much of an issue today. Ker-ala’s gas demand is estimated to be 5.58 million metric standard cubic metres of gas per day (mmscmd) and is projected to grow to 36 mmscmd

For laying the pipeline, GAIL has acquired only the right to use the land, after

paying the market rate. The ownership rights of

the land remains with the land owner and they are free to sell it if needed

25

by 2025. FACT, BSES and BPCL account for most of the gas demand in Kerala today. FACT’s two divi-sions together have a demand of 1.2 mmscmd. BSES is projected to have a demand of 0.9 mmscmd and BPCL Kochi refinery, 0.6 mmscmd.

PLL has signed a 20-year gas supply deal with the US energy gi-ant Exxon Mobil. The deal will en-sure the Kochi terminal and assured supply of 1.5 mmtpa gas from the Gorgon gas field in Australia. The gas from the field is expected to start flowing from 2014, by which time the terminal will be fully func-tional. In the interim, PLL will buy gas from the spot market to meet the demand.

The availability of gas is expect-ed to change the economics of

industries in the region. The advan-tages of natural gas over other fuel sources are many. Natural gas is much cheaper than other fuels, and using it for their energy needs would help them become more competitive. It has the lowest carbon footprint among fossil fuels, leading to lesser pollution. Supply of natural gas is also not much of an issue as with other fossil fuels. Discovery of shale gas reserves in many regions of the world have cooled natural gas prices in the world. It is also much safer than other fuels such as LPG. As it is lighter than air, it rises and dissi-pates faster on leakage. LPG on the other hand is heavier and so it stays and accumulates at the ground level.

Gas could be used as both an en-

ergy source and also as a feed stock in many industries such as fertilisers, polymers, glass and plastics. Hence the arrival of natural gas at the State’s shores throws up many opportunities in the State.

Setting up the supply chain — the storage facilities, gas outlets, the transportation infrastructure — itself offers big investment op-portunities. Businesses that support the pipeline network, supplying the valves, fittings, meters and safety devices for it have a lot of potential. Managing fleets of tankers that sup-ply the LNG hubs is also a promis-ing business.

The thermal power plants in Ker-ala could switch to gas from other fossil fuels. Gas-based generators are more economical than diesel-based ones and backup devices like invert-ers, offering a convenient backup power solution to commercial es-tablishments. Gas-based fuel cells have the potential to deliver clean, dependable electricity wherever it is needed.

The industrial establishments can use it for distributed power gen-

eration, using combined heating, cooling & power (CHCP) systems. Apart from their use in boilers and furnaces, natural gas can be directly used in geysers, air-conditioners and refrigerators also. Gas-based ap-pliances are more efficient, require lesser maintenance and last longer than their counterparts which run on electricity. The switch to LNG will also help them reduce their carbon emissions by half.

CNG outlets for vehicles could become ubiquitous in the State, just as petrol pumps. The high octane levels of natural gas make it a much more efficient fuel for vehicles. It helps lower fuel costs and is environ-ment friendly. So much so that major cities in the country are making its use mandatory in vehicles.

City Gas Distribution projects are another opportunity. Supply-ing piped natural gas to households ensures availability of gas and avoids the hassle of booking cylinders and transporting them. KSIDC has al-ready formed a joint venture with GAIL Gas to bid for city gas distri-bution projects in the State.

As the availability and accessibil-ity of gas increases, the market for gas-based appliances will also boom. Developing such appliances catering to specific industries could be a re-warding business. The State can take full advantage of the availability of gas, only it develops high end appli-cations that use gas. The widespread use of gas in such applications could usher in the gas-based economy in the State.

Once work on the terminal is completed, companies in and around Kochi will

be able to shift to gas – the cheaper and more

environment-friendly fuel – for their energy needs

26

27

Centre decides to relax cabotage law for the Vallarpadam ICTT

Setting sailSetting sail

INfRaSTRuCTuRE

Kochi could soon witness huge cargo ships lining up on its shore. The Central cabinet

has decided to relax the cabotage law under the Merchant Ship-ping Act, 1958, for transshipment of export-import containers at the Vallarpadam International Con-tainer Transshipment Terminal, in the city. The relaxation for a period of three years, after which it will be reviewed, should help the ICTT at-tract enough customers.

The cabotage law stipulates that only Indian flag-bearing vessels can operate between domestic ports in the country. This puts foreign ves-sels at a disadvantage as they have to depend on a domestic feeder ves-sel for transporting the cargo after transhipment from huge mother ships at an international container terminal such as the one at Vallar-padam. Consequently, foreign liners prefer transshipping their contain-ers at nearby foreign ports such as Colombo, and then using their own feeder vessels to transport the cargo to smaller ports in India.

Unlike other ports in the country, the Vallarppadam ICTT lies near the international shipping channel and hence has the potential to attract container transhipment business. Transshipment at Indian ports could save traders `10,000 per container and a delay of 10 days.

In spite of these obvious advan-tages, the terminal built at a cost of around `3,000 crores and commis-sioned two years ago, could not at-tract many foreign shipping lines.

And the bulk of India’s container transhipment business, estimated at 7.5 million TEUs per annum, still happens through foreign ports, while the ICTT with a capacity to handle 1 million TEUs a year, operates at just a third of its capacity.

The relaxation of the cabotage law is expected to help the ICTT attract more foreign vessels. DP World, the operator of the terminal, has extensive experience in the field and connections with major global shipping lines. This is expected to help the ICTT attract large shipping lines.

The presence of global ship-ping lines will attract more cargo to the ICTT. Industries in the region which currently ship their contain-ers through Tuticorin port and tran-ship them at Colombo could find transhipment at Kochi an attrac-tive proposition. The fact that Val-larpadam is well-connected by rail and road makes the shift easier. The congestion at major ports such as Chennai and Mumbai also could see cargo moving to the city. In addition, the ICTT expects cargo to come by

sea for transhipment from as far as Gujarat.

The domestic shipping lines were resisting the relaxation of the cabo-tage law, fearing competition from foreign operators. They fear that In-dian lines which are subject to vari-ous taxes and other regulations will have to compete with foreigners who are not subject to such regulations. But earlier experiences do not war-rant such pessimism. The Central government had earlier relaxed the cabotage law for the JNPT when it was privatised. Very little tranship-ment takes place in India at pres-ent, and hence the effect could be minimal. In fact some feel that it will benefit the industry as more cargo will be moved through the coast.

Anil Singh, head of DP World in India, is quoted as saying that the move will help build business confi-dence. He also expects cargo to come from Hyderabad, Nagpur and other central parts of the country, as also from down south.

Even though the cabotage law has been relaxed, there are still some issues that hinder the terminals growth. It is yet to have 14.5 metres draft, with just one berth having a draft of 13.5 metres. This will pre-vent huge ships from docking at the terminal. The traders complain that the handling charges at the terminal are also higher than that of compet-ing ports such as Colombo. Now that the government has done its part, it is the duty of the ICTT to attract customers by providing better services at competitive rates.

Industries in the region which currently ship

their containers through Tuticorin port and

tranship them at Colombo could find transhipment

at Kochi an attractive proposition

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BuSINESS CallED lIfE

Pulikali is an integral part of the Onam celebration inThrissur. Participants, their body painted in tiger-skin designs with yellow,white and black stripes take to the streets, as thousands of onlookers revel inthe play of colours. It takes almost an

hour to get one ‘tiger’ ready for theperformance, according to a veteran Mr K K Raveendran. There are around six toeight teams consisting of around 40 people, who go around the Siva temple atthe city centre. In the past, both the artists and the performers got nomonetary benefit for their participation in the annual ritual. But now-a-days,the artists get up to `250 per person. And some

of the participants with big bellies get up to `4,000!

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Photo: Sivaram V.

30

CoVER SToRy

31

Aiming high In this land of green, it happens once in a blue moon. Kerala is getting ready to showcase its wares for the visitors. Visitors with deep pockets, the contents of which will change its face forever. Nine years after it organised Global Investor Meet, the State is rolling out the red carpet once again. But this time, it will not be just the investors who will be in attendance. There are think-tanks, intellectuals, planners and academics, too, mulling over creating a knowledge-based, green and sustainable economy for the State. Conceived as a biennial event, Emerging Kerala will give them platform to brainstorm and forge initiatives and frameworks that will help the

emergence of a sustainable economy. The State has a lot to

offer its suitors: its green and clean environment, its abundant human resource, its impeccable history in law and order and its famed hygiene. Over the

past decade, the State has considerably built on its

infrastructure, the most important being the International

Container Trasnsshipment Terminal, Kochi. With the Central government relaxing the cabotage law, the ICTT will be a big draw for investors in a lot of sectors such as manufacturing, packaging, food processing etc. The IT infrastructure in the State also has taken a big leap: there was only Technopark Thrivananthapuram in 2003, but there are about 2000 acres of land under development for the industry now, spread across the State. The education sector saw a revolution unfolding, with the coming up of professional educational institutions in the private sector. Tourism has grown from strength to strength, with northern Kerala also coming up on the radar screen of investors and tourists. The government has identified 26 focus sectors which offer potential for growth. They are spread across various sectors. Of them, we are presenting here detailed reports on five: tourism, knowledge industry, IT, manufacturing, and food processing. While all sectors bring in their strengths, we think these five will be the main pillars on which the future economy of the State will be built.

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INfoRMaTIoN TECHNology

The best of both worldsKerala offers the best human resources and infrastructure for IT at considerably lower cost compared with other States

Kerala is one long city, they say. The State’s IT infrastructure has also spread out to its smaller towns. (In pic) Infopark, Cherthala

Somewhere in the middle. That is where Kerala lies on the IT map of the country today.

Thiruvananthapuram is the biggest software exporter among tier-2 cities as per a PWC report on Indian IT industry published last year. It is not yet a tier-1 IT destination yet. But it has grown bigger than a tier-2 des-tination.

This means IT firms that set up shop here enjoy the best of both worlds, without the problems as-

sociated with them. Kerala is not as expensive or crowded as a tier-1 des-tination. Attrition does not trouble the IT companies here. Nor do they face the myriad problems that tier-2 cities present such as lack of connec-tivity, poor business infrastructure, scarcity of talent, especially in middle management, poor English language skills and unfriendly regulations.

Arbitron, a media and marketing research firm headquartered in Co-lumbia, Maryland, US, is an MNC

which set up its office in Infopark Kochi, a couple of years back. “We had two concerns when we first started our office here - whether we would get the right talent and the availability of support services such as security, maintenance, account-ing, etc,” says Mr Shilen Sagunan, managing director of Arbitron India. “We started by bringing profession-als from outside to get the culture right. Later we started recruiting from the engineering colleges in the

33

State.” And the going has been good.

The company has now grown to 300 people; it recruited 50 freshers from the engineering colleges in the State this year. It even offers paid intern-ships to sixth semester students, for doing actual work for the company. That way the students come to know of the company and vice-versa. The company even went ahead and re-cruited four students from an engi-neering college in a rural area in the State on an experimental basis last year. “After training we don’t find much of a difference between them and recruits from urban areas. The important thing is to put them in the right environment,” says Mr Sagu-nan.

Mr Sagunan also doesn’t find them lacking in communication skills. “People often confuse com-munication with accent. But that is not correct. I have seen people with a heavy Indian accent succeed even in the sales field in the US. We need people who have the guts to speak with our colleagues in the US on equal terms. We need people who can absorb diversity and work in a team,” says he, adding that a ques-tioning attitude is necessary for the success of the organisation. “Organ-isations should create an environ-ment that fosters ideological conflict. But at the same time they should take care that it does not degenerate

into a personality conflict. The senior management has to set examples of such behaviour.”

The social infrastructure in Kera-la can match those in many metros. Kerala is an open society with a his-tory of welcoming outsiders. People from different regions in the world, and different religions have thrived here. The law and order situation is the best in the country. So too are its human development indices. In-ternational schools are springing up in its cities and towns, alongside en-gineering colleges and management institutes. 27 multi/super speciality hospitals, including 15 medical col-leges, take care of its health and that of many foreigners too.

The State also has people to man the middle levels of management. Its long innings in the IT sector – Technopark is the first IT park in the country, started in 1990 – has ensured that people have grown into middle management levels. It has also become a favourite destination for expats, with its high living stan-dard and social infrastructure. Add to that the experienced folks from around the world who long to return to their home State. And your plate is full.

The physical infrastructure and support services are also second to none. The government is building IT infrastructure throughout the State using the Hub & Spoke model. The Technopark at Trivandrum, In-fopark at Kochi and the CyberPark at Kozhikode form the three IT hubs in the State, with the parks in the districts forming the spokes. The SmartCity project has also taken off and it is expected to put the State on the global IT map. The Technopark is in its fourth phase of expansion, while Infopark is building its second phase at Kochi. The State currently has 1,500 acres under IT parks (see box). Support services are also not an issue as Mr Sagunan found out. “If you set expectations and build trust, people are willing to provide quality service on time,” says he.

The State also boasts of un-matched bandwidth. Two submarine

cables – South-East Asia - Middle East - Western Europe 3 (SEA-ME-WE3) and South Africa Far East (SAFE) – land in the State. Tele-density is twice the national average. And 99 per cent of its panchayaths have broadband connectivity.

If cruising on the net is not enough, it also offers unmatched physical connectivity. Three interna-tional airports – and a fourth one in the making – act as its gateway to the world.

All this comes at a cost that is much lesser than that of the bigger cities. Rentals are 30-40 per cent cheaper than tier-1 cities, so are power costs. Salary costs are also lesser, but even then attrition is low-er. The State with just 3 per cent of the total population of the country, supplies 7 per cent of the country’s IT professionals, many of whom long to come back to the State. For them, staying in their home turf does have its advantages.

No wonder, MNCs make a bee-line for the State. 40 per cent of the companies in Technopark are MNCs, while the figure is in single digits in most other tier-2 cities. CapGemini and Oracle are the latest in the list to land in the State.

It is not just the MNCs that have set up shop here. The major Indian IT companies, TCS, Cognizant, In-fosys and Wipro - have a presence in the State. And they are expanding it too. TCS has taken up 82 acres of

People often confuse communication with

accent, says Shilen Sagunan of Arbitron.

“I have seen people with a heavy Indian accent

succeed even in the sales field in the US. We need

people who have the guts to speak with our

colleagues in the US on equal terms”

Kerala tops all others States in connectivity—

both digital and physical. The landing points in Kochi of two

undersea cables put Kerala in a unique position; the three

international airports offer it unmatched air

connectivity

34

land in Technocity to start its Global Training Centre capable of training 15,000 people. Infosys too is setting up its second campus in Thiruvana-thapuram, its fastest growing centre, on 50 acres of land in Technocity. Cognizant is expanding its opera-tions in Infopark Kochi, by build-ing a campus that can house 12,000

people. The State is a paradise for start-

ups too. As Mr Sagunan says, “Ker-ala is developing into a society of innovation. The current generation is willing to take risks as their par-ents are not financially dependent on them, unlike the case of previous generations.” Technopark Technol-

ogy Business Incubator has already incubated over a 122 companies. And its first incubate has gone ahead and set up the Startup Village in Ko-chi, the first incubator in the country exclusively for the telecom sector.

Few States in the country are at such a sweet spot. Its time to move in.

SmartCity Kochi, when complete, is expected to be one of the largest IT parks in the country. The

`2,000-crore project is expected to have 8.8 lakh sq ft of built up space with a minimum of 6.2 lakh sq ft (70 per cent of the total) set aside for IT/ITES/allied services. The director board of SmartCity Kochi has approved the concept master plan for the project. The concept master plan envisages facilities including education, health care, shopping boulevards and residential units. The project is expected to change the investment profile of the State by bringing global IT firms to the State which already boasts of marquee names of the Indian IT industry. It brings a number of opportunities to investors, business-men and job seekers in Kerala. The first phase of the proj-ect with a built up space of over 3.5 lakh sq.ft is expected to be complete in 18 months.

IT Infrastructure in Kerala

Park Area (acres) Built up space StatusTechnopark, Thiruvanathapuram 300 4 million sq ft OperationalTechnopark Phase III, Thiruvanathapuram 92 1 million sq ft Under constructionTechnocity, Thiruvanathapuram 431 30 million sq ft Master Plan readyTechnopark Kollam 44.46 1,00,000 sq ft Under constructionInfopark 100.86 5,00,000 sq ft OperationalInfopark Phase 2 160 8 million sq ft Under constructionInfopark Cherthala 66 2,40,000 sq ft OperationalInfopark Ambalappuzha 100 1,00,000 sq ft Under constructionInfopark, Koratty 30 40,000 sq ft OperationalCyber Park, Kozhikode 70 4,00,000 sq ft Under constructionCyber Park Kannur 30 1,50,000 sq ft Under constructionCyber Park Kasaragod 100 1,50,000 sq ft Under constructionSmartCity, Kochi 250 8.8 million sq ft Under construction UL Cyberpark 25.11 3.1 million sq ft Under constructionKINFRA Neo Space, Kozhikode 30 85,000 sq ft OperationalMuthoot Technopolis 3,55,000 sq ft Operational

SmartCity Kochi pavilion which was recently inaugurated

SmartCity chugs on

35

MaNufaCTuRINg

Kerala excels in high value manufacturing

The silent performer

If tourism is the poster boy of the Kerala economy, manufacturing is the underdog. With a potential

to become the black horse. If you have doubts, then take a

look at some of the companies which foreign majors have lapped up from the State: Guardian Controls, OEN, Nitta Gelatin and Terumo Penpol. They were all started by home-grown entrepreneurs, met global quality standards and built their own busi-ness. And when the big boys came shopping for quality stuff, they picked them up.

Terumo Penpol was started as Peninsular Polymers (Penpol) by bureaucrat-turned entrepreneur Mr C Balagopal in 1983, manufacturing blood bags using technology provid-ed by Sree Chitra Thirunal Institute for Medical Sciences and Technol-ogy. It expanded to manufacturing blood transfusion and allied equip-ment in 1996. Today, it is part of the $3.8 billion Terumo Corporation, a Japanese company with presence in over 150 countries. Or Nitta gelatin, which was started as Kerala Chemi-cals and Proteins Ltd. A public sec-tor company with financial aid from KSIDC, it later became part of the Japanese major Nitta Gelatin. Or Guardian Controls, manufacturing electronic controls, which is now part of Tyco. Or OEN, again into electronic hardware manufacturing, which was taken over by French gi-ant FCI.

“If you are looking at high-end manufacturing, then Kerala is the place to be in,” says Mr Neraj Balan, who set up his A&B Toolers in Ko-

chi 10 years ago. “But Kerala is not an ideal place for setting up manufac-turing industries that might require a lot of land and people with low or no skills.” Mr Balan’s company offers tooling solutions and customised machines. “We work on global stan-dards, and cater to global brands,” he said. “When Europe slowed down recently, Africa emerged as a good alternative.”

No wonder, though it is not cel-ebrated, the manufacturing sector, which primarily consists of elec-tronic hardware, light engineering,

steel, wood, fertilizer, rubber and agro-based products and traditional industries such as coir and handloom contribute 8.28 per cent to the State’s GDP. Big manufacturing units such as those of Apollo Tyres also add to the share. The other home-grown companies such as V-Guard and Ki-tex have also proved that a manage-ment with an understanding of the social realities can make the State a successful ground to play on. NeST, a Kerala-based company, is a manu-facturing partner for several global giants including Fortune 100 com-

36

panies. And there is no dearth of en-

trepreneurship as well. Most of the industrial parks in Kerala set up by government agencies are full. Kin-fra, the major player in preparing industrial infrastructure that runs more than 25 parks across the State, sees a big rush of people. “Most of our parks are full, and even the ones which are under development at-tract investor interest,” a Kinfra spokesperson said. A major chunk of the Kinfra parks hosts manufac-turing units which vary from light

engineering to solar panels to wood and agro-based products. The four Industrial Growth Centres KSIDC runs host industries mostly in the manufacturing sector.

And realising this potential, the government is moving in with spe-cial schemes. One of the most im-portant projects the government is now working on is an electronic manufacturing hub in Kochi. The Electronic Industries Association of India expects the market for elec-tronic products in India to grow at 30 per cent a year. This growth has

attracted global players to India, with many of them setting up manufac-turing and R&D centres here.

The Draft National Policy on Electronics aims to achieve a turn-over of about $400 billion by 2020, involving investment of about $100 billion and employment to around 28 million people at various levels. Ac-cording to Union IT Minister Kapil Sibal, domestic manufacturing of electronic goods in the current sce-nario could cater to only $100 billion worth of products by 2020 against a demand of $400 million and the rest

PETRo-CHEMICalS

BPCL Kochi Refinery has proved that Kerala can take up huge projects involving thousands of people

It’s possible

The BPCL Kochi Refinery is rewriting Kerala’s industrial climate with mega projects. It

has already completed a ̀ 4000 Crore project in 2011 by which it expanded the crude oil refining capacity from 7.5 to 9.5 million tonnes per annum and upgraded the quality of Pet-rol and Diesel to meet Euro III/IV norms. It is now undertaking anoth-er `14,000 Crore investment which will enhance the refining capacity to 15.5 million tonnes per annum and also produce 5 Lakh tonnes of Pro-pylene, a key raw material for petro-chemical industries. Further, BPCL has a proposal to form a Joint Ven-ture with a major international Pet-rochemical Company for the manu-facture of Propylene based products which would entail an investment of about `6000 crore.

The JV will, in turn, provide raw

The BPCL management has decided to invest in Kochi not because it has no options, but it had the confidence

in us, says Mr John Minu Mathew, Executive Director

37

of the requirements would therefore have to be met by imports.

The Electronic Hardware Park, proposed to be set at Mulanthuruthy, near Kochi, hopes to capitalise on this potential for growth. The proj-ect will offer world class facilities for units in the electronic sector. The park will focus on OEMs, contract manufacturers, R&D firms, and an-cillary units.

The electronic park will be part of the larger Kochi-Palakkad National Investment and Manufacturing Zone (NIMZ). “The Centre has now asked some more details from the State government in the prescribed

format for giving clearance to the project. This has been prepared and is being submitted to the Centre,” said Minister for Industries and IT PK Kunhalikutty.

The NIMZ with a capital outlay of ̀ 53,825-crore is expected to give a thrust to the industrialisation of the State. The NIMZ, to be executed in PPP mode, is expected to attract in-vestment of around `1,00,000 crore over 10 years. It will provide direct employment to five lakh people over five years, and indirect jobs to 25 lakh people in 10 years.

KSIDC has proposed that 20 in-dustrial nodes be created as part of

the NIMZ. Each node will be devel-oped as a self-contained industrial township, with infrastructure facili-ties such as drainage, water supply, sewage and effluent treatment plants, rainwater harvesting, solid waste management and green buffers. The NIMZ proposed on 5200 hectares would comprise six industrial zones - two food and agro processing zones, three engineering and electronic zones, and one chemical and petro-chemical zone.

Its time entrepreneurs with an idea of global quality standards in manufacturing looked at Kerala seri-ously.

material for downstream products, which would attract further invest-ments. It is estimated that the proj-ects could attract an investment of up to `5,000 crore. That means, BPCL is laying the ground for an investment of 25,000 crore at Kochi in the petrochemical sector.

An investment that could surpass any other in the recent economic history of the State.

“BPCL management has decid-ed to invest in Kochi not because it has no other options. But it had the confidence that mega projects can be executed in Kerala without a hitch,” said Mr John Minu Mathew, Execu-tive Director. “Implementation of the `720 crore SBM Project with Shore Tank Farm at Puthuvype and laying of the 43 km pipeline which brings crude oil to the refinery has proved that if properly managed, projects of any size can be implemented in Kerala smoothly.” The company used the best technology and managed it well, so that it caused minimum dis-ruption to the public, he said. The point is, “how you manage it,” said Mr Mathew.

The industrial environment has seen dramatic changes in the last decade or so, according to him. “We never had a major labour unrest in the

plant for the last couple of decades”, says Mr Mathew. “This is because people at both the ends understand the changed situation. The manage-ment and the labour unions have a very good assessment of the realities. It is not that the trade unions are si-lent here. If you can convince them by your actions that you are not there to exploit them, if you can create the trust, then it’s a smooth sail,” he said.

The refinery has been successful in creating lasting impression among all the stakeholders-the employees, the government, the people-that it is able to press ahead with other proj-ects.

The company has already formed a team for conducting a detailed fea-sibility study and environmental im-pact study of the propylene deriva-tives project.

The JV will produce about 7 petrochemicals from which more value added products can be made. “We have shortlisted environment-friendly products for the down-stream manufacturers, given the sensitivity of Kerala. The JV will start production by 2016, and it will be a good opportunity for investors to set up units to make products with the raw materials,” he said.

The spare power capacity avail-

able from the 220 kv substation of KSEB at Ambalamugal will ensure steady supply of power for the units, he said.

A delayed coker plant is being installed as part of the expansion project that will provide petcoke. The State government is planning to set up a 400 MW power plant using petcoke, which is one of the last products of petroleum refining. “Petcoke gasification will provide a non-polluting route for power gen-eration,” he said. “A preliminary fea-sibility study was carried out for the proposal.” This is an area for poten-tial investment by the private sector.

The refinery is looking up to par-ticipation from companies in certain other sectors also. “We need indus-trial gases such as hydrogen and nitrogen and plan to source it from an experienced gas utility manufac-turer who can set up facility in the campus,” he said. “We shall give them land, raw material and then will buyback the products. It will be a good opportunity for experienced players to come and set up shop here. Besides, such “across the fence” availability of industrial gases will encourage other investors who need such utilities to invest here and make use of this site advantage.”

38

TouRISM

A beauty with brainsKerala Tourism is a super brand, but it has a lot more to go

That tourism should do well in Kerala is a no-brainer. Sell-ing the State blessed with

unmatched natural beauty to tour-ists isn’t a difficult job. And Kerala has done reasonably well in it. The number of tourists visiting the State has crossed 1 crore, including over 7.3 lakh foreigners, in 2011. Earn-ings from tourism increased from `4,500 crore in 2001 to ̀ 19,037crore in 2011.

That the State has achieved this growth through home-grown play-ers, without much help from the biggies in the sector, is proof enough that it knows the game. The home-grown players haven’t tried to match their offerings with that of the well-known destinations in the country and abroad. Instead, they based their offerings on the unique strengths of the State, such as its nature, cul-

ture and Ayurveda. They showcased the unique way of life in the State. And in the process they provided the tourists with memorable experi-ences, while preserving the culture and ecology of the region. The State today caters to the premium segment of tourists – the alert, intelligent, traveller.

But the fact remains that Kerala is still some distance away from its potential. The State that made it

to National Geographic’s list of 50 must see locations gets just 0.06 per cent of international tourists in the world. That each of the South East nations receives 10 times the number of international tourists than Kerala a year should be an eye-opener to the State.

The way to do that is to enhance the experience provided by the State to tourists, by developing new desti-nations and products.

The State offers a huge potential to develop new destinations. Tour-ism activities have concentrated in the southern regions of the State, leaving much of the State’s north un-explored. Opportunities exist for in-vestors to develop new destinations in these regions. Houseboat opera-tions that are currently concentrated in the Vembanad lake in South Ker-ala, could also be expanded to other

The State that made it to National Geographic’s list of 50 must-see locations gets just 0.06 per cent of international tourists in

the world

North Kerala can more than match the south, and has breathtaking locales.

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Wanted: bold decisionsGovernment must be an enabler; entrepreneurs must work with the community

regions of the State. A factor that limits the expansion

of tourism to the northern regions is the poor connectivity. Even though the State is well connected with three international airports, only one of them serves the north. The completion of the Kannur Interna-tional Airport, expected by 2015, will open up the region to tourists. In ad-dition the State is building airstrips at Kannur and Wayanad to increase

connectivity to these destinations to boost tourism. Heli-taxi services have already started from the Kochi airport, adding a new way to reach remote locations easily. The proposal to start seaplane services will also boost connectivity across the State and open up new tourism segments.

The Ministry of External Af-fairs has approved the tourist Visa on arrival facility at the Thiruvana-thapuram airport. The airport is only

the fifth one in the country after Delhi, Mumbai, Chennai and Kolk-ata airports to get this facility, which is expected to boost the tourist in-flow into the State. Tourists from 11 countries can get visa on arrival with a maximum validity of 30 days. The facility might be extended to the Ko-chi airport also soon.

The Kochi port receives around 50 cruise vessels a year, and the port trust is planning a cruise terminal.

After 54 years of its forma-

tion, Kerala is now looking at a re-emergence. For me, this is a time for us to look back and see what steps that we took in

the past helped us reach here. And identify the steps that will take us forward.

The first government in the State took some revolutionary steps. By introducing the Land Reforms Act, it chose to restore dignity to a large section of people in the State. It also underscored our faith in equality. That government also gave utmost importance to universal healthcare and education, areas in which Kerala was already way ahead of its neigh-bours. Successive governments went further up, stopped exploitation of labour and ensured that every child goes to school and every labour gets his due.

In fact, this Onam, after sharing the noon meal, the man who taps my small rubber plantation told me that labourers like him never had it so good. He comes in his Maruti 800, finishes the work by 1 pm, and then works part-time as a plumber

and electrician. He earns on an av-erage `800 a day. His son, who has just completed a BCA, found a job in Kochi. The boy does not earn enough there, and so the father sends him some money, with the hope that one day, he will land a very remunerative job.

So, this is where we stand to-day: we have prospered and we now share prosperity. And whether one is in total agreement with the steps those governments took or not, one will have to agree to the fact that the governments in the past were courageous enough to take decisions which they thought will help the people of the State.

At this juncture, I would like the government of the day also to do the same: identify the areas in which we have a potential to grow and then take decisions. Decisions which are bold, deliberate and purposeful. De-cisions that will help us make a leap from where we are now.

I have been working in the tour-ism sector. It has undoubtedly grown in the past couple of decades. It was a joint initiative of the government and the private sector. Both invested heavily into it, and the State as a whole has benefitted. And now, it is time for us to look to the future.

The government need not shower entrepreneurs with freebies. But put in place regulations and rules which clearly stipulate the goals. The gov-ernment must be realistic and an en-abler while doing so. I can refer to a specific example in which the gov-ernment must act: relax rules govern-ing availability of liquor, at least wine and beer. People don’t come here to drink; it just adds to the taste of the time they spend here. If the govern-ment wants the sector to grow, then it must play the role of an enabler. It should not be scared by the ghosts of the past. There is very little to achieve by holding on to slogans that are not in step with our times. Instead, they should help us exploit the potential of the sector.

My understanding is that we have over 20 lakh serious tourists a year, even though the total number of visitors would be manyfold. This is not enough: we have not even scratched the surface of the opportu-nities the sector offers.

Entrepreneurs who have their eyes on Kerala must understand one thing: there is an open transparent system in the State. You won’t ben-efit by knowing a minister or two. You will be working in a society which has clear ideas about its rights. It pays to work with the community and be the reason for it to celebrate success. Harness the assets of the place so that you spread the cheer around.

(The writer is managing director, CGH Earth. As told to K J Jacob)

40

The presence of the seaport and the airport helps tour operators conduct multimodal tours, where tourists ar-rive on ships and leave via the air-port, and vice versa.

Kerala is the cradle of Ayurveda, India’s indigenous medicine sys-tem that offers a lasting solution to many a health problem. Realising its potential, many of India’s top busi-ness houses such as Tata and Birla, are entering the sector. The ayurvedic practitioners in the State have also started packaging their services bet-ter, without compromising on their authenticity to attract high end cus-tomers.

Attracted by these advantages, global hospitality majors have turned their attention to the State in recent years, but there is still room for more.

Kerala has a variety fair to offer tourists. From hill stations to beaches and backwaters, from heritage tour-ism to health tourism, from festivals to adventure, from wildlife to home stays and much more. The possibili-ties offered by the State are limited only by our imagination.

Tourism PolicyThe new tourism policy of the State, unveiled this year, aims to attract 30 lakh foreign and 1.8 crore domestic tourists to the State by 2021. The policy proposes to give equal impor-tance to domestic and international markets in view of the recessionary trends that exist in the major foreign markets. In addition to increasing the number of tourists; the depart-ment also plans to increase the du-ration of their stay in the State. It plans to partner the industry to de-velop multi-experience packages and products to increase average length of stay of a foreign tourist from the current 16 days to 21 days.

To ensure a world class local visitor experience, the tourism de-partment will ensure provision of basic amenities in all destinations, constant improvement of services in hotels, restaurants and visitor points, upgradation of visitor facili-ties in places of interest and overall improvement in upkeep and main-

tenance of local attractions at des-tinations. Infrastructure will also be given due importance.

The policy aims at ensuring the sustainability of tourism activities and emphasises responsible tourism. It plans to devise a new classification scheme – Resposible Tourism (RT) Classification - based on the prin-ciples of Global Sustainable Tour-ism Criteria. The incentives given to players will be linked to RT practices.

It also encourages private in-vestment in tourism. A fast-track clearance of tourism projects with investment above `10 crore will be introduced. The department will bear 25 per cent of the travel fare and pro-motional materials subject to a max-imum of `75,000 for international fairs and `50,000 for domestic fairs for one international fair and one domestic fair in a year, for the first 3 years. Tour operations, home-stays, serviced villas, ayurveda centres, new accommodation units of less than 30 rooms located in Kasaragod, Kannur, Wayanad, Kozhikode, Malappuram and Palakkad districts, and new houseboat operators in backwaters other than Vembanad Lake will be eligible for the assistance.

StatisticsDomestic Foreign

No: of tourists in 2011

93,81,455 7,32,985

% growth over 2010

9.15 % 11.18 %

% share in India

11.65%

Top 10 Destinations for foreign tourists in Kerala in 2010

Kochi City - 116536 Kovalam - 108639 Fort Kochi - 65396 Varkala - 45545 Thiruvananthapuram - 43032 Alappuzha - 39531 Maradu - 37881 Thekkady - 27537

Kumarakom - 26599 Munnar – 19690 Peak tourist season - Oct – March

Tourism Infrastructure in KeralaHotel Rooms in Kerala

Type No: of Hotels

No: of rooms

5 star deluxe 4 5125 star 14 11844 star 31 17933 star 305 74802 star 98 18881 star 8 273Apartment Hotel 1 58

Heritage 22 372Silver & Gold B &B 1 2

Total 484 13562

No: of houseboats in Kerala backwaters : 1000

Country wise foreign tourist arrivals to Kerala UK (23.7%), USA (10.8%), France (9.8%), Germany (7.6%) Australia (5.6%).

1.2 lakh(2.0%) international tourists coming to India, enter the country through the Trivandrum Airport and 1.1 lakh (1.9%) through CIAL.

The launch of visa-on-arrival facility

at the Thiruvanathapuram airport, the only one other

than the metros, is expected to boost the tourist inflow into the

State. The facility might be extended to the Kochi

airport also soon

41

fooD PRoCESSINg

Demand from the Kerala dispora and tightening food safety norms make the future bright for the industry

Hungry for growth

It is an industry in which Kerala has traditional strengths. The State was known for its spices,

from long ago. Traders from across the seven seas came here in search of its exotic flavours. And went back with ship loads of it. Only to be back for more. Apart from spices, its sea-food, and cashew nuts, and its varied cuisine, also made a name for it.

The days when Kerala just pro-duced and sold spices are long gone. Today players in the State import them from across the world, pro-cess them here and sell it across the globe. And they are in the process of upgrading themselves into flavour houses that produce value added products rather than sell commodi-tised products. That multinational giants are regular customers of those

companies and some of them have even formed joint ventures with them is proof of the quality and ex-pertise of the State in the field.

Kerala accounts for 20 per cent of the food exports from the coun-try. Processed food exports valued at `5,000 crore, accounts for more

Investors with global expertise are setting up modern processing plants. A view from Ames Food Processors, Ernakulam

than half of Kerala’s export income. And it has an appetite for more. It is estimated that food processing has the potential to become a `30,000 crore industry in the State. More than 1200 units operate in the space in the State; titillating the palates of not just the residents of Kerala, but also of the Malayali diaspora spread across the world, and even that of foreigners.

Its unique climatic conditions ensure that exotic crops grow well here, ensuring the availability of raw material. Kerala accounts for almost 10 per cent of the total coconut pro-duction of the world. The State pro-duces for 97 per cent of the country’s pepper, 70 per cent of its cocoa and 25 per cent of its coffee. 16 per cent of cashew production and 35 per cent of cashew nut processing units in the country are in Kerala. The Nendran variety of banana from the State is being exported to many countries. The State meets the entire pineapple demand of South India and part of the North. Special varieties of rice such as Navara and Pokkali with high nutritive and medicinal proper-ties also grow in the State.

Not to mention the availability of water. The State could serve as a source of packaged drinking water to much of the country.

Its long coastline and inland wa-ter bodies are the source of a wide variety of fishes and other foods such as crabs, shrimps, mussels, etc.

Cashews, spices, and seafood have been the major export earners for the State in the sector. But with the world realising the goodness of coconut, this could soon change. Opportunities exist for making value

Kerala accounts for 20 per cent of the food exports

from the country. Processed food exports valued at `5,000 crore, accounts for more than half of Kerala’s export

income

42

added products from coconut such as tender coconut water, virgin co-conut oil, coconut milk, sugar and jaggery, dessicated coconut, tender coconut chips etc. The Coconut De-velopment Board is taking steps to organise the small-scale farmers and achieve the scale and assured supply of raw material needed to sustain coconut-based industries.

It is not just the exports that are booming. The domestic market too is on a high. Kerala is at a stage where the demographic transition is play-ing out in the country. Nuclear fami-lies with both parents working have become the norm in the State. This translates to lesser time for cooking, and also higher disposable income. Both these are expected to drive the consumption of processed food in the State. Ready-to-eat/ready-to-cook segments are expected to boom in the State as a result of this shift. Not to mention the urge to experi-ment with new flavours and foods.

The State also offers a varied fare, when one comes to its cuisine,

reflecting its cultural diversity. With people showing an urge to experi-ment with new foods and flavours the world over, demand for ethnic foods is on the rise. Kerala with its huge diaspora spread across the world is well set to capitalise on this trend.

Keralites are known for the im-portance they give to health and per-sonal hygiene. And with food stan-dards becoming stringent by the day, across the world, the State stands a good chance to increase its share of the market.

A well developed retail sector also exists in the State, which pro-vides a marketing channel for food processors in the State. Keralites have embraced the supermarket cul-ture so well in so short a time. The entry of organised players in the re-tail sector, with adequate cold stor-age and transportation facilities is also expected to provide a fillip to the industry.

The State government has also been very proactive in encouraging the industry in the State. Kerala was the first State to set up a food park and an SEZ for food processing in-dustries in the country.

Connectivity is also an added advantage of the State. It has the highest per capita road density in the country which facilitates easy move-

Kerala’s strengths in food processing1. Availability of raw material – spices, sea food, fruits, vegetables, water 2. Cleanliness and personal hy-giene3. Connectivity – highest per capi-ta road density. 4. Perishable cargo centres at Thiruvanathapuram and Kochi airports5. Vallarpadam ICTT, located near the international shipping channel6. Huge domestic market 7. A vibrant retail chain and a su-per-market culture8. research institutes that develop food processing technology 9. Availability of skilled labour10. Infrastructure in the form of food parks

Infrastructure facilities

Food parks1. KINFRA Food processing Park Adoor,Pathanamthitta on 25 acres2. Seafood Park at Aroor, Alap-puzha – JV between, KINFRA, MPEDA and Seafood Exporters3. Kinfra Food Processing Park, Kakkancherry, Malappuram - Special Economic Zone (SEZ) on 30 acres – first food park and SEZ for food processing in the country4. Kinfra Food processing Zone, Mazhuvannur.5. Kinfra Herbal Park, Wayanad6. Kinfra Small Industries Parks at Thiruvananthapuram, Thrissur, Ernakulam, Kannur, Kasaragod, Wayanad and Thrissur also host food processing units

Proposed parks7. Food Park in five acres of land at Vithura, near Thiruvanathapuram8. A food processing unit at Pallip-puram near Cherthala9. KSIDC is setting up a coconut park at Kuttiyadi10. 3 more coconut parks to be set up in the State

The Centre for Perishable Cargo in Kochi and Thiruvananthapuram airports make exports less cumbersome

Opportunities exist for making value-added

products from coconut as the global demand soars

43

George Paul

Food processing is a fast grow-

ing sector, world-wide. There are many reasons that

make it happen. And those reasons hold good for Kerala, too.

World over, people love ethnic food. They crave for the dishes they savoured while young, even when they grow up and move out of their homeland. At the same time, they also want to experiment with new tastes. They find it easy to get pro-cessed, and call it convenience food!

Of late, governments have been tightening food safety norms as they can ill-afford people suffering from avoidable ailments contracted due to unhygienic food. The more a society develops, the more it be-comes conscious of the quality of the food. The romance of the road-side eating is all fine; but when it comes to a health-conscious peo-ple, the governments have little option but to put in place norms. For the food to meet the norms, it must have quality ingredients. This means food processing and food in-gredients industries are in for some

good time. However, I would like to point

that industrial growth is not a func-tion of the smartness of the indus-tries alone. The government has an in important role to play in making things happen. I do not think in-dustries now hunt for freebies from the government; at least in Kerala, this is not the case. We are, instead, looking for proactive policy formu-lation and their strict implementa-tion.

As for the food processing in-dustry, I feel the government must realise its potential and think of a comprehensive promotion plan, starting with a new farming policy. Synthite Industries has been the pioneers in spice oleoresins, and today we command the leadership position. But the fact is that we have to import a substantial share of the raw materials. We even im-port spices from as far away a place as Nigeria. It is not because these spices don’t grow here; but we find it hard to get the sufficient quantity of material that meet the quality norms.

It is not because Kerala has no land or people for cultivating them. We simply have not realised the

potential of high value farming. We need a more scientific approach to farming. We need to produce more from less resources and must care for the ecology and environment. Gone are the days when you can use pesticides and fertilizers at your will; today, there are strict guide-lines for them all. Gone are also the days when you can be easy with water; today, it has become a very precious input.

Kerala, with its educated people and a conducive climate can be reap big benefits if we use scien-tific knowledge into farming. For this, the government must come forward with a policy to promote technology-assisted farming such as precision farming. Our Krishi Bhavans must transform into sta-tions where farmers can avail the latest in farm technology. This will make farming a profitable voca-tion, and ensure raw material avail-ability for the food industry. And a reduction in cost would benefit the consumer, too. It will be a win-win situation for all.

The writer is director, Synthite Industries Ltd

Reform farming

ment of agricultural products from farmland to processing centres and markets. The Urban-rural divide too is very small in the State allowing for savings in storage and transporta-tion.

The perishable cargo centres at Thiruvanathapuram and Kochi air-ports facilitate export of perishable items such as vegetables and fruits, ready to eat items, etc. In addition the ICTT at Kochi, located near the international shipping channel, al-lows for easy import of raw materials and export of processed food prod-ucts.

The State also has a fair share of research institutions that develop

food processing technology. Institu-tions such as the Coconut Develop-ment Board and Spices Board help

in transfer of technology and in put-ting them into production. In addi-tion there are a number of colleges in the State that train people in food technology, ensure an adequate sup-ply of human resources.

In short Kerala has built an eco-system that enables the food processing industry, over the years. Raw material, human resources, in-frastructure, markets, quality certi-fication centres, and a large number of enterprises – big and small – add depth and breadth to it. Food pro-cessing is an industry with much go-ing for it in the State. The question is only whether we are hungry enough for growth.

The demographic transition, in which

nuclear families with both parents working,

translates to lesser time for cooking. Ready-to-eat/

ready-to-cook segments are expected to boom as

a result of this shift

44

KNowlEDgE INDuSTRy

On the frontiers The State must break new paths if it were to sustain the growth in the past

There is hardly a State which attaches so much importance to education other than Ker-

ala. A number of factors have played in creating this situation: the impor-tance rulers here historically gave the topic, the egalitarian notions that work as the bedrock of society, the opportunities it has opened for Keralites for generations, mostly outside the State and abroad. In fact, the State’s economy depends majorly on the remittances from the people it had sent abroad.

In the last five decades of its ex-istence, the State has ensured mass literacy but failed to ensure that the quality matches the leap in quantity. True, in the period, the State has seen premier educational institutions such as an Indian Institute of Man-agement and an Indian Institute of Space Science and Technology com-ing up in the State. It also hosts some top institutions in medical research and life sciences (see list). But they are hardly in a position to take the State forward in a direction that it

has travelled this far. “We cannot continue as we have

travelled till now,” said Dr GPC Nair, chairman, SCMS group in Kochi. “We need to understand the changes and challenges the world of-fers and move accordingly. We need to impart education and training which the world asks of its youth.” (See box). Dr Nair is the pioneering presence in the private professional educational sector in the State.

Most experts agree that the State must set up institutions in areas that are in the frontiers of knowledge: biotechnology, nanotechnology, in-formation technology, life sciences, management etc. As competition hots up and the world becomes one single village, the attributes that saved students from Kerala are un-likely to save them further. The State needs to produce human resource of the best quality if it were to sus-tain the momentum of its economic growth.

Biotechnology is one focus area experts suggest for the State. Kera-

la hosts the Western Ghats, one of the 25 bio-diversity hotspots in the world. Its flaura and fauna are yet to be studied academically, leave alone commercially exploited. Bio-technology is no more an academic subject. It is in fact revolutionising agriculture, healthcare and indus-trial applications, and has become a multi-billion dollar industry today. And Kerala recognised this early and set up the Rajiv Gandhi Cen-tre for Biotechnology (RGCB) in Thiruvananthapuram. An early bird in the sunrise sector, RGCB is now a pre-eminent name in biotechnol-ogy research. The State followed up the subject by setting up one of the earliest biotechnology incubators in the country, at Kinfa Hitech Park at Kalamasserry in Ernakulam.

The government is planning to set up more such facilities for re-search and application in the life sci-ences sector. The proposed Life Sci-ence Park, Thiruvanathapuram is one such move. KSIDC, the industrial promotion arm of the State govern-

The State is setting up facilities for entrepreneurs in the knowledge industry. (In pic): The biotechnology incubation centre at Hitech Park, Kalamasserry

45

ment, is developing the park to ca-ter to the requirements of biotech companies. It is envisaged as a facility to host biotech companies, drug discovery companies, con-tract research outsourcing firms, bio informatics centres, agri-busi-ness firms, super specialty hospi-tals and research institutions. It will also have an incubation centre for start ups. The presence of the RGCB in the neighbourhood is expected give the facility a major fillip to the facility.

While the life sciences park will be an infrastructure facility for academic and industrial proj-ects, the government is planning to set up an Indian Institute of Information Technology (IIIT) on a Not-for-profit Public Private Partnership (N-PPP) basis. To be set up in Kottayam as part of a scheme of the union Ministry of Human Resources Development, the IIIT will have participation from the Centre, the State gov-ernment and a private partner. It

will help train students in the ad-vanced areas of information tech-nology and raise the standards of IT education in the State further.

The government is also plan-ning to set up a unique facil-ity which will house advanced centres in education and health. The Edu Health City project, to come up on 183 acres in Malap-puram district, will host two hubs catering to the two sectors. The education hub will have an Inter-national Institute of Technology, International Institute of Man-agement Studies, School of De-sign & Creative Arts, School of Natural Sciences, School of Law, School of Humanities and Social Sciences, School of Bio Technol-ogy and Life Sciences, School of Travel & Tourism.

The health hub will have med-ical, dental, nursing and pharmacy colleges, a super specialty hospi-tal, a diagnostic center and a well-ness centre which offers ayurveda, unani and sidha treatments.

Central institutions* National Institute of Technology - Kozhikode* Indian Institute of Space Science and Technology-Thiruvananthapuram* Indian Institute of Management – Kozhikode* Sree Chitra Institute of Medical Science and Technol-ogy Thiruvananthapuram,* Rajiv Gandhi Centre for Biotechnology, Thiruvanan-thapuram.

Universities* The Central University of Kerala* Cochin University of Science and Technology* Kerala Agricultural University* Kerala University of Health and Allied Sciences* University of Kerala* Mahatma Gandhi University* University of Calicut* Kannur University* Sree Sankaracharya University of Sanskrit* Indian Institute of Information Technology and Man-agement-Kerala

* National University of Advanced Legal Studies * Amrita Deemed University

Research Institutions* Vikram Sarabhai Space Centre, Thiruvananthapuram. * Indian Institute of Spices Research (IISR), Calicut. * Regional Cancer Centre (RCC), Thiruvananthapuram. * Central Plantation Crops Research Institute (CP-CRI), Kasaragod. * Central Tuber Crops Research Institute (CTCRI), Thiruvananthapuram. * National Institute of Interdisciplinary Science & Technology (NIIST),Thiruvananthapuram. * Centre for Cardamom Research Institute (CCRI), Idukki. * Rubber Research Institute of India (RRII), Kottayam. * Tropical Botanical Garden and Research Institute, Palode, Thiruvananthapuram. * Regional Research Laboratory, Thiruvananthapuram. * Kerala Forest Research Institute, Peechi, Thrissur.* Central Marine Fisheries Research Institute, Er-nakulam, Kochi.

We are hereIIM Kozhikode

46

Liberalise, pleaseDr GPC Nair

Of late, Kerala h a s

started feel-ing the ben-efit of hav-ing liberalised education. The

amount that non-resident Keral-ites send home was around `20,000 crore in 2005; it is today close to `70,000 crore. I would attribute this to one single factor: the quality of manpower we send abroad. The gov-ernment in Kerala which came to power in 2001 started sanctioning self-financing professional colleges. And the first batch of students with a professional degree in areas such as engineering, nursing, hotel manage-ment and business administration started passing out in 2005. And great many of them sought, and got, jobs abroad, particularly in the Gulf. Their earnings were remarkably better than the unskilled and semi-skilled men and women we used to send earlier. I believe the quantum jump in their earnings is reflected in the remittances.

These remittances form as much as a quarter of Kerala’s total income. And it is in fact on this income that we survive. It could stop one day, and could send our State into utter chaos. If we are to prevent it from happen-ing, then we must innovate ourselves, train our young men and women in the fields of knowledge and equip them to take up assignments any-where in the world. This is the most important task I see for our society.

This task can be taken up best by the private sector, under government guidance. For this, the attitude of politicians as well as society towards

private involvement in education must change. Instead of branding every person who sets up an educa-tional institution as a profiteer, the government must put in a system to distinguish the wheat from the chaff and encourage the former. We ask for no doles; instead, we demand clear policy guidelines from the gov-ernment.

World over, private universi-ties foster innovation. It’s time that we also allowed that to happen in Kerala. The government must create a transparent mechanism to encour-age good, quality institutions. Giv-ing them more power will not spoil them; rather, it would make them more responsible. If they feel that only quality survives, and their suste-nance depends solely on deliverables, then no one would dare tinker with quality.

At present, there are several re-strictions that smother the growth of institutions. As much as 70 per cent of the students in the PGDBM course we conduct come from out-side Kerala. They come seeking quality and reach us. But this is not the case with other courses such as engineering. The best colleges in the State often don’t get the best stu-dents. If it is liberalised, we will get better quality students, which will

help us in our endeavour to become a world class institution.

In my experience, there are four essential ingredients that make

an educational institution a success. The first is the management with the vision and zeal for moulding young men and women into good, pur-poseful citizens. It demands a lot of mentoring and patience. If you don’t have them, or if you are looking for making quick money, education is not the sector you must step into. At the same time, if you can patiently nurture the institution, and make it a success, then money will come to you.

The faculty comes next. Every-body cannot be a good teacher. It’s for the management to pick the right people with right attitude towards mentoring students. Only if you have a motivated team of people will you succeed. The students come next. They should be aware of the chal-lenges they face in the future, must learn the skills that will stand them in good stead. I find these days most students lack self-confidence. They cannot take decisions, for their par-ents do it for them. Our society must think seriously about this and dis-courage the trend. The academic at-mosphere is the next. At SCMS, we ensure that there is no stress on the students. From imparting soft skills to ensuring availability of books and journals in the library to the quality of food the canteen, a student does not have to worry about the avail-ability of resources. All they have to do is to tap them.

(The writer is chairman, SCMS group, Kochi. As told to K J Jacob)

We must innovate our educational sector, train

our young men and women in the fields of knowledge and equip

them to take up assignments anywhere

in the world

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Kerala per say is not all that business friendly a State. The attitude of a section of the

policy makers, bureaucrats and the citizens of the State to businessmen and entrepreneurs within is plain negative. In their eyes, businessmen and entrepreneur engage in man-power exploitation, tax evasion and profit-making, and therefore should be kept at arm’s length. While the first two things have no scope to ex-ist in the State now due to increased

Celebrating entrepreneurship

Mr S R Nair

awareness of its denizens and over-view of the media, the last (profit-making) is the crux of wealth gener-ation. No wealth can be distributed if it cannot be generated. But still there are people in Kerala who looks down upon profit-making!

The policy-makers and execu-tives often conveniently forget the economic principle that entrepre-neurship is the foundation stone of economic progress. A society which is not entrepreneurial will find it dif-ficult to grow and the present eco-nomic ambience of the State is a testimony to this fact. For a consum-ing State that is living on remittance economy, how long will it sustain, is the moot question.

I am sad that entrepreneurship is seldom celebrated or recognized. While there is some change on the

recognition part lately, it is grossly inadequate to encourage potential entrepreneurs to get into business.

For a state like Kerala with limitations of space, with no major manufacturing industries around, with people aspiring for only white collar jobs, with so many NGOs and cultural leaders clamouring to main-tain the pristine nature of the State, the only possibility is to focus on the tertiary (service) sector as the major industrial activity.

With this in mind we should make Kerala a technology centred economic activity place. And, the government must focus on skill de-velopment of its people and do pro-motional measures to set up knowl-edge-based industries in the State.

Though the large footprint con-gregations like Technocity at Thiru-

The State must find ways to promote entrepreneurship. (In pic): The Start-Up Village at Kinfra Hitech Park in Kalamasserry

49

area and large BPO companies such as Accenture, IBM, Sodexho, Cap Gemini etc. in the ITES sector to set their base in the infrastructure. These companies will take care of the large employment requirement of the State, year on year.

People working in new genera-tion companies aspire for enough of entertainment facilities around the place of their working. Attitudinally, the policy-makers turn their eyes away from these realities. The re-quirement is genuine and by closing the eyes on this, authorities will only forbid the arrival of such companies to set base in Kerala.

Other major business segments to be focussed are financial services, hospitality and healthcare. The State must promote institutions of excel-lence in these areas to train the job seekers for these sectors.

Next in line could be educa-tional services, biotechnology, media, R&D and design services. All these are well suited to the white collar aspirations of Malayali. Addition-ally, his employment temperament in knowledge and information area will get accommodated too. Institu-tions of higher studies that had now come to get established in Kerala will have the flow its student output into these sectors. Cerebral employment will not only redeem the Malayali psyche but also will give him large remunerations as compared to jobs in lower end segment in the career value chain.

Major hindrance to our growth is the lack of infrastructure, par-ticularly roads and transportation facilities. The State has to build up high speed highways in addition to widening of existing highways and getting the same into good shape, as also the roads inside the city corpo-ration limits.

Better transportation facilities round the clock are required for cities such as Kochi, Thiruvananthapuram and Kozhikode. All these cities also must plan their MRTP system. It is good to know that Kochi Metro will become a reality soon, other cit-ies must follow suit. Within cites like Kochi, alternate speed water trans-portation facility must be immedi-ately implemented. It could be on a PPP model so that the State is not burdened on the capital expenditure required for them.

In a state like Kerala where large industries are not favoured due to constraints of space and population, Small and Medium Establishments (SME) must be focussed. For this purpose, a new SME industrial poli-cy should be incorporated for specific interventions by the government for the development of small & medium enterprises which undoubtedly con-tribute significantly to the economic growth of any state. SMEs must get interest subsidy, loan disbursement, quality certification, marketing assis-tance and awards and recognitions.

To promote venture capital fund-ing for SME projects for adopting innovative technologies such as nano technology, information technol-ogy and bio-technology, the govern-ment should encourage FIs/banks who have the necessary expertise in operating VC funds. The minimum amount available to each such fund to disburse should be `100 crore.

Though these are perspectives on the focus areas or areas of business, the basic aspect of the attitudinal change required in malayali towards entrepreneurship is something that needs immediate attention. Unless that comes through, any plan that we make in Kerala to accelerate its in-dustrial output will not come about.

vananthapuram and Smartcity at Kochi are there in the making, our techno parks are slated to establish only small companies within. This will not boost employment in large numbers in the State.

We need to take into account of the fact that every year the State produces about 30,000 or more fresh graduate engineers, 10,000 diploma engineers, 10,000 MBA/MCAs and another 30,000 graduates who aspire to make it big through white collar employment. For close to 75,000 employment-seekers per annum, do we have world’s top IT and services companies working in Kerala for providing jobs? Sadly, no!

Though the Technopark was the country’s first endeavour of concen-trated IT services cluster, it never grew to bring in big time IT/ITES players to the State. IT Infrastruc-tures built well after Technopark in cities like Bangalore, Hyderabad, Chennai etc. had already started overflowing and still the Kerala parks could not bring the global players into it. Thus, we had missed the IT bus coming to the State at least in three instances, over 15 years of timeframe in the past.

Infrastructures like Smartcity, Technocity etc. must persuade global giants like IBM, Microsoft, HP, Oracle, SAP etc. in IT development

A society which is not entrepreneurial will find

it difficult to grow and the present economic

ambience of the State is a testimony to this fact. For

a consuming State that is living on remittance

economy, how long will it sustain, is a moot question

50

Kerala is one of the few states in India to implement land reforms. It elevated a large

section of society from poverty. It provided the landless farmers with land. It freed them from the clutches of the landed gentry, which leased them land, for a share of the yield that was often exorbitant, and left them with a pittance. Land reforms brought an end to the practice.

‘Land for the tiller’ was the slo-gan of the land reforms movement. In the years after the land reforms, Kerala has moved from an agrarian society to a service oriented one. The increase in education levels opened new opportunities for the people, in other sectors of the economy. Consequently, large sections of the population have moved away from agriculture. The share of the work-ing population in agriculture and al-lied sectors, has declined from 47 per cent in 1991 to 23 per cent in 2011. The share of the State’s income from

agriculture also showed a similar de-cline from 26.23 per cent in 1993-94 to 10.59 per cent in 2010-11.

Large swathes of agricultural land is currently being laid waste in the State. The extent of cultivable land that has been laid waste, that had been decreasing since 1960, showed an increase in the last decade from 62710 hectares at the turn of the century to 91665 hectares in 2010-11. Land put to non-agricultural uses also showed an increase of around 50,000 hectares in the period, while the net area sown fell by around 1.8 lakh hectares.

This shift has been aided by the dwindling returns from agriculture, especially when compared to other sources of livelihood. The land re-forms scattered the land into small holdings, robbing the sector of the advantages of scale. It robbed the farmers of the bargaining power with raw material suppliers. Marketing the produce was also a problem and they were often left to the mercy of middlemen. Mechanisation couldn’t happen due to lack of scale even as labour shortages hit the sector. The increase in productivity could not keep pace with the increase in costs and conventional farming became unviable.

As a result of this shift, land is no more a productive resource for many of the owners. Agriculture is at most an additional, secondary source of income for them. At the same time, the prices of land have increased many fold during these years. Land has become a speculative asset, rather

Today landowners can earn more by selling the land and depositing the proceeds in a bank, than by pursuing agriculture

The slogan raised half a century back is even more relevant today

Land for the tiller

51

than a productive one. It has become the main repository of black money in the State. Hence the relation be-tween the price of land and the yield from it has been broken. Today land-owners can earn more by selling the land and depositing the proceeds in a bank, than by pursuing agriculture.

And the sons of the soil have come to see it as a way of making a quick buck. Selling the soil is often the easiest way of doing that. The State is today dotted with hills that have been flattened for their soil, which is used for filling up paddy fields so as to use them for purposes other than farming, with disastrous consequences for the environment. As hills are excavated, the water ta-ble in the region drops, affecting the drinking water supply and irrigation facilities in adjacent areas. The fertile top soil which sustains plants, is also lost in the process. Filling up of pad-dy fields, often cause water-logging in adjacent fields rendering them un-cultivable.

Not surprisingly, the production of almost all major crops, except rub-ber has declined in the State in the last decade. Kerala today is depen-dent on its neighbours for most of its staple food. The situation is not

much different in the case of cash crops too, with production showing a decrease in the case of pepper, ca-shew, and even coconut. (see figures).

On the other hand, people who are interested in agriculture and take it up in spite of the many challenges face much more of them. Since the land reforms act limits the acreage that can be held by a person, they are not able to buy land and expand cultivation. The high price of land also prohibits such a move. They take land on lease from landowners who often reside abroad or in other parts of the country, even though leasing farmland is prohibited in the State.

That the State government tolerates and even encourages the practice, should act as an eye opener to the need for reforms.

The demographic changes are set to hasten the trend. The younger generation is migrating to other parts of the world. Studies show that the number of migrants returning to the State is decreasing. The latest census figures show a dramatic increase in urbanisation in the State. All these are set to increase the amount of agricultural land put to waste in the State.

The governments at the State and Centre, are making big efforts to revive agriculture in the State. The proposal to set up Special ag-ricultural zones and the packages to improve the infrastructure in the regions are all welcome. But unless the bottlenecks in the sector are re-moved, these measures will not be of much use.

It is time the government took steps to return the farmland to the tiller. For at this rate, there won’t be much of it remaining in the State for long. The other side is suicidal. As former American Presdent Franklin D Roosevelt said, “A nation that de-stroys its soils destroys itself.”

The production of almost all major crops, except

rubber has declined in the State in the last decade

People who are interested in

agriculture and take it up in spite of the

many challenges face much more of

them. Since the land reforms act limits

the acreage that can be held by a person, they are not able to

buy land and expand cultivation. The

high price of land also prohibits such a

move

Sl. No Crop Area (Ha) Production(Tonnes)

2001-02 2010-11 % change 2001-02 2010-11 %

change1 Paddy 322368 213187 -34 703504 522738 -262 Tapioca 111189 72284 -35 2455880 2408962 -23 Coconut 905718 770473 -15 5479 5287 -44 Pepper 203956 172182 -16 58240 45267 -225 Cashew 89718 43848 -51 65867 34752 -476 Rubber 475039 534230 12 580350 770580 33

7 Ginger (Dry) 10706 6088 -43 40181 33197 -17

8 Banana 50871 58671 15 375903 483667 299 Arecanut 93193 99834 7 84681 99909 1810 Coffee 84795 84931 0 66690 65650 -211 Tea 36899 36965 0 66090 57291 -13

52

It pays to take care of the spine, one of the most neglected body parts

Mind your spine HEalTH

“Difficulty to bend. Back pain.”“Not able to sit for more than 10 minutes. Back pain.”“Severe back pain that goes down to leg while walking.”

These are very common com-plaints a general physician encounters almost every day.

Lifestyle diseases have become so common that people are even forced to change their way of life from what their parents did. It includes the quality and variety of food they eat, the share of physical and mental exercises they perform and the stress levels they endure.

The share of people who make a living by hard physical labour has

come down as machines have to some extend replaced them. The only worsening part is about the stress levels, which have gone up for most people.

The irony of the whole develop-ment is that the body, the beneficiary of all the betterment in the physi-cal quality of life, has not taken very kindly to the apparent improvement. Spine included.

Our habits greatly influence the health of the spine as well. You may not realise it, but how you sit, stand, sleep, move, walk, eat, drink and even think all have an impact on your overall health, including the condi-tion of your back.

Spine is the main supporter of the body. It is so strong, so flexible. This quality allows you a wide range of movements. Unfortunately, spine is also one of the most neglected body parts. Once it sustains some damage, then all the hell breaks loose, and the body just can’t move. A better under-standing of the spine helps one to treat it well before it gets damaged.

It is your posture that mattersNormally, people are not conscious

about their postures in daily life ac-tivities. For example, most of people do not pay much attention how they stand. In most cases, it is like stand-ing with the body weight thrown only on one leg or one leg turned completely sideways. Some bear all the weight on the heels, or on the in-ner or outer edges of the feet.

The vertebral column of a stand-ing person has two convex curves and two concave curves into the neck and hip regions. These curvatures help the body distribute its weight equally into the ground. This preci-sion is possible only when you stand and sit erect. That is why it is always advised to adopt an erect posture while standing or sitting.

In a bad posture, the body con-tinuously struggles and uses extra energy to keep itself against earth’s gravitational pull. This causes extra burden on the muscles and liga-ments, leading to oedema and pain.

Control your body weightAs you put on additional weight, the spine begins to distort and to com-press, causing pain. It can also have an effect on the pelvis, tilting it for-ward and perhaps causing it to pinch the sciatic nerve. That is one of the main reasons why people who are overweight tend to have problems with their lower back, either because of sciatica or because of the distor-tion of the spinal column.

Take a break, energiseIf you are sitting in one posture for long, like before a computer, it in-dicates nothing but you have little awareness (or carefulness) about your spine. One has to be careful that

Even persons having back injuries can do yoga with

the help of an experienced yoga therapist. A little

bit of yoga can go a long way in helping one to be more comfortable and

even to overcome the back problem

53

whether one’s postures and even the chair or bed gives proper support to the spine. Stretching the body, stand-ing up, doing some simple twists and breathing well can relieve the spine.

Be at peace If you have big worries for days, that may develop as a dull back ache. In fact, strong emotions will tighten your muscles. If your muscles are mildly tensed for several days, it reduces blood circulation and causes inter cel-lular fluid accumulation and internal swelling.

This adversely affects oxygenation of blood, which blocks the proper sup-ply of nutrition. Simply because of these things, your muscles announce a dull back pain to warn you. So stop worrying, your back will be free and healthy. Daily meditation can help a lot in this regard.

Regular exercisesExercises like yoga help the body and the muscles with hassle-free move-ments. There are a number of different yogic postures which can help the back in amazing ways. Even persons hav-ing back injuries can do yoga with the help of an experienced yoga therapist. A little bit of yoga can go a long way in helping one to be more comfortable and even to overcome the back pain.

An oil massage a dayAyurveda suggests everyday abhy-anga for the total health of the body, especially the back. If you could spent 15-30 minutes a day for doing an ab-hyanaga- medicated oil massage- on your body, it will help a lot. Oils sug-gested for spine are murivenna, sa-hacharadi, mahanarayana, karpooradi and dhanwantharam oils. These oils can provide much relaxation to spine, especially on the lower back- lumbar region.

Regular healthy dietA wholesome diet including more fibrous food items will help a lot. As you grow older, you may face calcium deficiency and the diet can be ar-ranged accordingly with the help of a physician.

Know your spine

Ever wondered about your spine’s structure? It is really

an engineering marvel. It is a quite versatile pole that can bend, twist, hold and support most of the body’s weight.

Spine is a chain of 33 vertebrae. In between each pairs of vertebra is a disc which is elastic in nature. These discs help the spine move to all sides. Discs also act as a shock absorber protecting the spine from heavy impact.

Of the 33 vertebrae, the seven in the neck (cervical) and five in the

back (lumbar) are the most mobile. The lumbar vertebrae move while carrying more weight (e.g. when we stoop to pick up weight). This ex-plains why back pain is experienced most in the area called the lumbar. Starting from top, there are seven cervical vertebrae. Its discs permit 180 degrees of motion.

Spine has a specially curved shape, which is actually a boon; for the arcs are better shock absorbers. When you walk with your body of seventy kg, your spine’s vertebrae absorb jolts of 70 kg with each step!

Spine protects your spinal cord, which is around 45 centime-tres long. Millions of messages fly back and forth along it to direct all your activities below the neck. If anything serious happened to this whitish one centimetre-thick cable, alas, you have to spend the rest of your life in a wheel chair.

Spine discs are susceptible to several kinds of injury. A really se-vere jolt, an auto accident, a serious fall, can simply squash a disc, which often calls for major surgery, involv-ing removal of the remnants of the disc and fusion of the two vertebrae.

A less severe injury can rupture the disc’s tough envelope, permit-ting the enclosed jelly to ooze out. This can cause acute misery.

Back pain mostly occurs in connection with the nature of

one’s job. So it can also be called an occupational disease. Among various types of workers some are more prone to it:• Those who do physically strenu-ous jobs.• Those who do sedentary jobs without much exercise to the back (e.g. clerks).

• Workers continuously bending forward and sideward.• Those who work with the same repeated movements continu-ously.• Those who need to do work with vibrating machines such as drillers. Among them those with smoking habits and who are mal-nourished tend to experience back pain more.

Back pain- an occupational disease

54

55