Best Business Opportunities in Bhutan - Identification and Selection of right Project, Thrust areas for Investment, Industry Startup and Entrepreneurship Projects

The economy of Bhutan, one of the world's smallest and least developed countries, is based on agriculture and forestry, which provide the main livelihood for more than 60% of the population. Agriculture consists largely of subsistence farming and animal husbandry. The economy is closely aligned with India's through strong trade and monetary links and dependence on India's financial assistance. Most production in the industrial sector is of the cottage industry type. Most development projects, such as road construction, rely on Indian migrant labour. Model education, social, and environment programs are underway with support from multilateral development organisations.

The industrial sector is in a nascent stage, and though most production comes from cottage industry, larger industries are being encouraged and some industries such as cement, steel, and ferroalloy have been set up. Most development projects, such as road construction, rely on Indian contract labour. Agricultural produce includes rice, chilies, dairy (some yak, mostly cow) products, buckwheat, barley, root crops, apples, and citrus and maize at lower elevations. Industries include cement, wood products, processed fruits, alcoholic beverages and calcium carbide.

Bhutan’s hydropower industry accounts for 32% of the nation’s economy. The dependency on a single sector is a potential risk factor, the report states. As an alternative revenue generation sector, the government is promoting tourism, which also hopes to generate employment. Like in most countries, the Cottage and Small Industry (CSI) play a pivotal role in the overall industrial economy of Bhutan.


Business Sectors

Agriculture Industry

Agriculture in Bhutan has a dominant role in the Bhutan's economy. Approximately 80% of the population of Bhutan are involved in agriculture. Over 95% of the earning women in the country work in the agricultural sector. Majority of the refugees in this Himalayan nation are also employed in the agricultural sector. Agriculture in Bhutan is characterized by its labor-intensive nature with relatively low intensity of farm inputs.

Major crops cultivated in Bhutan are maize and rice. Maize accounts for 49% of total domestic cereal cultivation, and rice accounts for 43%. Rice is the major staple crop. Agriculture in the country includes cultivation of wheat and other minor cereal crops. Paddy is the primary crop in those regions where proper irrigation is available. Apart from paddy, other crops like wheat, barley, oil seeds, potato and different vegetables are also cultivated in these lands. The primary goals of agriculture in Bhutan are to raise the per capita income of the people living in rural areas, to enhance self-sufficiency in staple crops, and to increase the productivity per unit of farm labor and agricultural land.

There may be investment opportunities in:

  • Dall Mill (Split Dalls/ Pulses for Chhilke-wali Moong, Urad, Arhar, Channa, Masoor)
  • Poha (Rice Flakes)
  • Atta, Maida Suji & Wheat Bran (Wheat Flour Plant) Roller Flour Mill
  • Rice Powder, Puttu and Wheat Powder
  • Biscuits & Candy
  • Rice Mill(Parboiled Rice)
  • Bakery industry, etc.

Minerals and Mining

The country’s mineral industry was small and insignificant to its economy and was dominated by the production of cement, coal, dolomite, gypsum, and limestone. Known resources included deposits of beryl, copper, graphite, lead, mica, pyrite, tin, tungsten, and zinc. Mining is one of the fastest growing industries in Bhutan generating average revenue of 54 million U.S. dollars or contributing 3 percent to country's GDP.

Industrial mineral products were the primary output of Bhutan’s mineral industry and included dolomite, graphite, marble and slate, and sand and stone. The production of a variety of stone materials and energy fuels had been increasing steadily in recent years and corresponded to the increased demand for these commodities in the construction sector. While major exports of minerals are made in raw form, Bhutan processes some of its minerals into value-added products such as calcium carbide, cement, and ferrosilicon.

Accordingly, Bhutan’s policies on mining and quarrying consider inter-generational equity. This is important since minerals constitute vital raw materials for the mineral based manufacturing industries and are a major resource for economic development of a country. Bhutan is endowed with rich mineral resources that has allowed for the sustainable growth of a mineral based industry and export base. This mineral resource exploitation and value addition has helped generate employment and can contribute towards poverty alleviation.

There may be investment opportunities in:

  • Artificial Marble Tiles
  • Granite (Marble) Polishing Batti (Bar)
  • Granite Marble Cutting and Polishing Unit
  • Calcium Carbonate from Marble Chips
  • Coal Washing Unit
  • Ferro Silicon Manufacturing
  • Gypsum plaster boards
  • Beneficiation of chromium, nickel and manganese ore
  • Integrated production unit of gypsum powder, gypsum board
  • P.V.C. laminated gypsum ceiling tiles, etc.

Livestock Industry

Livestock farming practices continue to evolve in response to rapid modernization and growing economic opportunities in the Bhutan Himalaya. Animal husbandry is an integral part of farming activities in Bhutan and, especially in the high altitude or alpine regions, animal husbandry forms virtually the sole economic activity. The consumption of animal products is an important element of the Bhutanese diet.

Livestock is an integral part in all Bhutanese farming systems. While most households rear livestock for home consumption, livestock farming and nomadic herding are the predominant activities in the alpine and cool temperate zones. Over 80 per cent of rural households own cattle. Other significant livestock include poultry (reared by about 65% of rural households), pigs (38%), horses (23%), goats (15%) and yaks (2%). Inadequate pasture land and poor access to markets are significant constraints to improving production, but increasing urban demand for livestock products is encouraging farmers near urban areas to keep better breeds and improve feed and fodder management. In the livestock sector artificial insemination covers not only Jersey breeds that are high yielding but also for the production of Jatsa and Jatsam that are local high yielding varieties.

The indigenous cattle are the most important livestock genetic resources for food, animal energy and household income in Bhutan. Poultry farming is one of the important livestock farming components in Bhutan.

There may be investment opportunities in:

  • Aquaculture Fish Farming
  • Prawn/Shrimp Farming
  • Poultry & Broiler Farming
  • Management of Rabbits/Angora Rabbit Farming
  • Goat & Sheep Farming
  • Poultry Farm for Producing Eggs
  • Animal Feed Using Date Pits, Discarded Dates and Other Ingredients
  • Pig Farming
  • Cattle Feed, etc.


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Medium Density Fiberboard (MDF)

Fiberboard is a type of engineered wood product that is made out of wood fibers. Types of fiberboard (in order of increasing density) include particle board, medium-density fiberboard, and hardboard. Fiberboard, particularly medium-density fiberboard (MDF), is heavily used in the furniture industry. MDF does not contain knots or rings, making it more uniform than natural woods during cutting and in service. However, MDF is not entirely isotropic, since the fibres are pressed tightly together through the sheet. Like natural wood, MDF may split when woodscrews are installed without pilot holes. The Indian market for particle board and plywood is estimated in value terms, at over Rs. 37 bn. Of the total market, particle board including medium density fiberboard (MDF) accounts for nearly a quarter of the market. Nearly 85% of the particle board is supplied by the organized sector. Western India has emerged as the leader in the particle board segment.Thus, as an entrepreneur this project offers an exciting opportunity to you. Few Indian major players are as under • Bajaj Eco-Tec Products Ltd. • Best Board Ltd. • Century Plyboards (India) Ltd. • Greenply Industries Ltd. • Mangalam Timber Products Ltd. • Nuchem Ltd. • Shirdi Industries Ltd.
Plant capacity: 150,000CBM/annumPlant & machinery: Rs 5624 lakhs
Working capital: -T.C.I: Cost of Project : Rs 8236lakhs
Return: 28.00%Break even: 47.00%
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Calcium Silicate Insulation Board

Calcium silicate board is an asbestos-free thermal insulation product that can withstand continuous high operating temperatures. It is a light weight, low thermal conductive, high strength, easy to install, reliable and durable product. Calcium Silicate Insulation Boardis a medium density fiber reinforced calcium silicate board which has been formulated without inorganic fiber. It is suitable as direct render carrier for a variety of thin coat polymeric renders, external uses for fascias, bargeboard and sheathing applications, and suitable for internal wall linings. Demand for high-temperature insulating materials is expected to increase due to industrial development, thus boosting the market for calcium silicate. Growth in the construction sector has bolstered demand for calcium silicate as it is the major end-user of calcium silicate. Increasing demand for calcium silicate has compelled producers to undertake expansion and acquisition of projects to meet global demand. Numerous producers are shifting their plants to countries such as China and India due to various factors such as low raw material and labor costs.Thus, due to demand it is a good project for entrepreneurs to invest. Few Indian major players are as under • Varsha Refractories Private Limited • Lanexis Enterprises Private Limited • Heetanshu Installations & Engineers • CK Birla Group
Plant capacity: 50,000Sq.MT/annumPlant & machinery: Rs 74 lakhs
Working capital: -T.C.I: Cost of Project : Rs 316 lakhs
Return: 24.00%Break even: 68.00%
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Cattle Farming (500 Cows)

Dairy farming has been part of agriculture for thousands of years, but historically, it was usually done on a small scale on mixed farms.But today, India derives nearly 33% of the gross Domestic population from agriculture and has 66% of economically active population, engaged in agriculture. The share of livestock product is estimated at 21% of total agriculture sector. Milk production alone involves more than 70 million producers, each raising one or two cows/buffaloes primarily for milk production.Milk is used as a food. It is used prepare curd, butter, ghee cream and ice cream etc. India is the world's largest producer of milk, and is the leading exporter of skimmed milk powder, yet she exports very few other milk product. There has been tremendous growth in dairy farming equipment that helps modern dairy farms to manage thousands of dairy cows and buffaloes. In the present situation of world market, the milk and dairy market landscape is a dynamic entity within the food industry new opportunities in emerging markets, increasing globalization, changes in consumer demand, nutritional policy and the regulatory environment are among top issues facing the industry.As a whole it is a good project for new entrepreneurs to invest. Few Indian Major Players are as under • Amrut Industries Ltd. • Anmol Dairy Ltd. • Britannia Industries Ltd. • G R B Dairy Foods Pvt. Ltd. • Haryana Milk Foods Ltd. • Indiana Dairy Specialities Ltd. • Industrial Progressive (India) Ltd. • Mahaan Foods Ltd. • Milkfood Ltd. • Nikumbh Dairy Products Ltd.
Plant capacity: Cow Milk (Ltrs.): 2,268,000 units/annum Manure (MT):2,160 units/annum Calf (Nos.) : 252 units/annumPlant & machinery: Rs 144 lakhs
Working capital: -T.C.I: Cost of Project : Rs 727 lakhs
Return: 21.00%Break even: 50.00%
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Ginger Oil

Ginger products, such as ginger oil is internationally commercialized for use in food and pharmaceutical processing. To improve their appearance some grades of ginger are bleached by various means by liming. Ginger oil can vary in color from pale yellow to a darker amber color and the viscosity also ranges from medium to watery. The main Application for the ginger oil is confectionery, beverages and baked products.There is also a minor outlet in the perfuming industry particularly in certain Cosmetic products for men Limited amount of ginger oil are some time added to the oleoresin to produce the required balance between odour and pungency. Essential Oil Market is expected to reach $11.5 billion by 2022, with a CAGR of 10.1% from 2016 to 2022. Essential oil is obtained from various herbs and plants, such as orange, eucalyptus, corn mint, peppermint, citronella, lemon, lime clover leaf, ginger and spearmint, using distillation methods such as steam and water distillation. The major factor boosting the market growth is the increasing consumer preference for natural and organic products be it cosmetics, food or similar other product categories. Thus, as an entrepreneur this project offers an exciting opportunity to you. Few Indian major players are as under • A V T Natural Products Ltd. • AkayFlavours& Aromatics Pvt. Ltd. • Enjayes Natural Flavours Ltd. • Enjayes Spices & Chemical Oils Ltd. • Kancor Ingredients Ltd. • Plant Lipids Pvt. Ltd. • R K S Agrotech Ltd. • South East Agro Inds. Ltd. • Synthite Industries Ltd.
Plant capacity: 45,000 Kgs/annumPlant & machinery: Rs 103 lakhs
Working capital: -T.C.I: Cost of Project: Rs 274lakhs
Return: 27.00%Break even: 62.00%
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Sanitary Napkin & Baby Diapers

A diaper or nappy is a kind of underwear that allows one to defecate or urinate in a discreet manner.Diapers are primarily worn by children who are not yet potty trained or experience bedwetting.Thus, due to this property, the diapers are gaining huge consumption amongst the baby as well as adult population. Sanitary napkins are designed to absorb and retain menstrual fluid discharges. When used they are applied inside an undergarment with a press-on adhesive fixing strip. Today, the global market for absorbent hygiene products is over US$ 50 bn (including wipes).India feminine hygiene market grew with a CAGR of about 16.05% in the period of five years from 2010 to 2015. In the current scenario, sanitary napkin segment is generating the largest revenue within feminine hygiene market. The Baby Diaper Industry has revolutionised the FMCG industry.Thus, due to this property, the diapers are gaining huge consumption amongst the babies. P&G’s Pampers dominates the overall diaper industry, followed by Huggies and MamyPoko.Thus, due to demand it is a good project for entrepreneurs to invest. Few Indian major players are as under • Carewell Hygiene Products Ltd. • Centron Industrial Alliance Ltd. • Diapers India Ltd. • Godrej Hygiene Products Ltd. • Gufic Biosciences Ltd. • H L LLifecare Ltd. • Kimberly Clark Lever Pvt. Ltd. • Mediklin Healthcare Ltd. • MirahDekor Pvt. Ltd. • Regency Diaper Inds. Ltd.
Plant capacity: Sanitary Napkins (8 Pcs/Pkt) : 4,500,000 packets/annum Baby Diapers (4 Pcs/Pkt) : 6,000,000 packets/annumPlant & machinery: Rs 658 lakhs
Working capital: -T.C.I: Cost of Project : Rs 1184 lakhs
Return: 29.00%Break even: 50.00%
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Aloe Vera Gel and Powder

Aloe Vera Gel is one of the product prepared from aloe vera itself. Aloe vera Gel has very good medicine for external use for sun burning and pain killer. It has various medicinal values which makes very good commercial value. Aloe Vera Powder is composed of the freeze-dried inner "gel" of aloe leaf plant.Spray drying and freeze drying are the most common methods of producing aloe vera powder from gel. The global aloe vera extracts market revenue is anticipated to expand at a CAGR of over 7.7% in terms of value and 7.4%, in terms of volume during the forecast period. Factors such as increasing trend of consumers towards healthy lifestyle, coupled with increased usage of aloe vera extracts as an ingredient by food, pharmaceutical and cosmetics industries is fuelling market growth across the globe. Cosmetics, the largest end-use sector for aloe vera extracts, will account for over 45% of global demand in 2016, with annual volumes totalling 27,458.5 tonnes - an increase of 6% over 2015.Thus, due to demand it is a good project for entrepreneurs to invest. Few Indian major players are as under • Maple Biotech Pvt. Ltd. • Anwel Life Sciences Private Limited • Green Earth Products Pvt. Ltd • MDC Pharmaceuticals Pvt Ltd • LipsaImpex
Plant capacity: Aloevera Gel : 90,000 Kgs/annum Aloevera Powder: 15,000 Kgs/annumPlant & machinery: Rs 42 lakhs
Working capital: -T.C.I: Cost of Project : Rs 164lakhs
Return: 27.00%Break even: 49.00%
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Drumstick Powder

India has a major agribusiness sector which has achieved remarkable successes over the last three and a half decades.Drumstick is a tropical vegetable, which is very popular in South India and other parts of country. It gives a very distinct palatable taste and is one of the richest sources of glutamic acid among vegetable kingdom.The powder prepared from drumstick can be used as a flavoring agent for various non-vegetarian dishes to enhance the flavour of chicken or meat and can also be used for drumstick soup preparation by adding spice powder and other ingredients. Dehydrated drumstick powder is an integral part of Indian cuisine and is extensively used in manyfood and curry preparations.There is ample market for drumsticks and drumstick powder inmetro cities like Hyderabad, Mumbai,Pune, Nasik, Surat and others.Drumsticks and drumstick powder also have demand inRajasthan.The key Moringa producing country is India meeting 80% of world demand.As a whole it is a good project for new entrepreneurs to invest. Few Indian major players are as under • Thylakoid Biotech Pvt. Ltd. • Daehsan Trading India Pvt. Ltd. • Earth Expo Company • G.B.S. Flour Mills And Food Products • Herbs & Crops Overseas
Plant capacity: 600,000 Kgs/annumPlant & machinery: Rs 57 lakhs
Working capital: -T.C.I: Cost of Project : Rs 110 lakhs
Return: 28.00%Break even: 70.00%
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Baby Cereal Food

The Baby-cereal-foods is that enriched food which has a requisite level of nutrition. This requisite level is prescribed by various dietitians & physicians for children. Various experts fixed a definite calorific value for infant food & based on this the various mixtures or formulae of foods are developed. Food products are derived from single grains or blends of mixed grains combined with other ingredients for flavour and nutritional fortification. Materials used by various manufacturers in addition to the grains include malt, milk powder, vegetable oil, wheat germ, sugar, cotton seed flour, tri and dicalcium phosphate, dried yeast, a form of iron such as sodium iron pyrophosphate and the vitamin B1 (thiamin), riboflavin and niacin. The baby food market in India is witnessing rapid growth and is growing by 10-12% a year. India has the largest population of 0-4 year old in Asia. Additionally, due to the increasing number of working women, and the increasing parental concerns about nutrition have lead to its growth. Professionally-made food designed to meet the nutrition requirements of babies also address the problems of paucity of time for preparing baby food at home.As a whole it is a good project for new entrepreneurs to invest. Few Indian major players are as under • Continental Milkose (India) Ltd. • Glaxosmithkline Consumer Healthcare Ltd. • Hindustan Foods Ltd. • Kaira District Co-Op. Milk Producers' Union Ltd. • Narayan Agro Foods Ltd. • Natureland Organic Foods Pvt. Ltd. • Nestle India Ltd.
Plant capacity: Baby Cereal Food (Packing in 225 gms Size Packet): 600,000 Kgs/annumPlant & machinery: Rs 35 lakhs
Working capital: -T.C.I: Cost of Project : Rs 82 lakhs
Return: 32.00%Break even: 72.00%
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Fusion Bonded Epoxy Coating (FBE) on TMT Bars

Fusion bonded epoxies are one part, heat curable, thermosetting epoxy utilized for corrosion protection. FBEs are applied to heated parts in a powder form that rapidly gels from liquid to a solid and have remarkable adhesion to the steel surface. Fusion bonded epoxy coating, commonly referred as FBE coating is widely used to protect concrete reinforcing TMT bars, steel pipes, piping connections, etc used in construction. The domestic demand is based on the per capita consumption in the urban sector increasing from 77 kg to 165 kg in 2019-20 at an annual growth of 5%. Likewise the per capita consumption in rural areas was expected to rise from 2 kg per annum to 4 kg by the terminal year (a CAGR of 4.4%). India has one of the lowest consumption rate in the world - around 33 kg per person to China's 200 kg, and South Korea's 900 kg. The thrust to an increased growth of over 7% is expected to be realised by a 13% annual increase in exports.Thus, due to demand it is a good project for entrepreneurs to invest. Few Indian major players are as under • Amba Shakti Ispat Ltd. • B M MIspat Ltd. • Bildon Steels (India) Ltd. • Brilliant Steel Products Ltd. • Durgapur Steels Ltd. • Electrosteel Castings Ltd. • Hans Ispat Ltd. • J S W Steel Ltd. • Kamdhenu Ltd.
Plant capacity: Fusion Bonded Epoxy Coating of TMT Bars: 72,000 MT/annumPlant & machinery: Rs 768 lakhs
Working capital: -T.C.I: Cost of Project : Rs 2932 lakhs
Return: 1.00%Break even: 1.00%
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Fruit Processing

It could be said that freshly pressed fruit juice provides the truly natural answer to all the requirements of a soft drink: thirst quenching, fresh, healthy, flavor some, nutritional and, of course, natural.Changes in lifestyles and awareness regarding the consumption of a healthy and balanced diet have steered the growth of the global juice market. As a result of the growing consumption of vegetable and fruit juice, the global market for juice is likely to witness strong growth over the forthcoming years. However, the growth of the global juice market is entirely dependent on the geographical distribution and availability of vegetables and fruits. In the beverage industry, juices constitute the most competitive segment. To meet the requirements of consumers, manufacturers of juice products are focusing on introducing different varieties and flavors of juices along with innovative packaging, and product development. As dietary and health concerns are rising among consumers, the demand for vegetables and fruit juices is also rising.As a whole it is a good project for new entrepreneurs to invest. Few Indian Major Players are as under • Canfruit Export India Ltd. • Capricorn Food Products India Ltd. • Dabur Foods Ltd. • Foods & Inns Ltd. • Fortune Foods Ltd. • Galla Foods Pvt. Ltd. • Has Lifestyle Ltd. • Jagdale Industries Pvt. Ltd. • Maa Fruits India Pvt. Ltd. • Manpasand Beverages Ltd.
Plant capacity: Mango Juice (250 ml in PET Bottle) : 300,000 ltr/annum Pomegranate Juice (250 ml in PET Bottle): 300,000 ltr/annumPlant & machinery: Rs 61 lakhs
Working capital: -T.C.I: Cost of Project: Rs 109 lakhs
Return: 27.00%Break even: 69.00%
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  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
  • We can modify the project capacity and project cost as per your requirement.
  • We can also prepare project report on any subject as per your requirement.
  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.

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