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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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Agarbatti (Incense Sticks) Manufacturing

Incense is aromatic biotic material which releases fragrant smoke when burned. The term refers to the material itself, rather than to the aroma that it produces. Incense is used for aesthetic reasons, and in therapy, meditation, and ceremony. It may also be used as a simple deodorant or insectifuge. Incense is composed of aromatic plant materials, often combined with essential oils. The forms taken by incense differ with the underlying culture, and have changed with advances in technology and increasing diversity in the reasons for burning it. Incense can generally be separated into two main types: "indirect-burning" and "direct-burning". Indirect-burning incense (or "non-combustible incense") is not capable of burning on its own, and requires a separate heat source. Direct-burning incense (or "combustible incense") is lit directly by a flame and then fanned or blown out, leaving a glowing ember that smoulders and releases fragrance. Direct-burning incense is either a paste formed around a bamboo stick, or a paste that is extruded into a stick or cone shape. Incense sticks also called agarbattis are fragranced sticks used from ancient period by people all over the world. The evolution of incense stick could be from the burning of aromatic woods in the primitive period. As mankind gained civilization and became more religious, these fragranced agarbattis played important role in daily rituals. India is largest incense stick maker and currently the export market for the sector is about Rs 450 crore. With the demand for branded agarbatti (incense sticks) growing at nearly 15 per cent every year. Kolkata has the largest market for sale of incense sticks or agarbattis by volume in the country at Rs. 150 crore or so, in the Rs. 1,000 crore national agarbatti market. As a large portion of the market was still unorganised but conservative estimates complied for last fiscal indicated that incense stick sales were growing at 7-8 per cent per annum.
Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: 1.00%Break even: N/A
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Wood Pellets From Sawdust

In general, any biomass is suitable as raw material for pelletizing. Currently woody biomass is the predominant raw material for fuel pellet production. The main constituents of wood are the elements carbon (C), hydrogen (H) and oxygen (O). Other important elements are nitrogen (N), sulfur (S), magnesium (Mg), chlorine (Cl) and potassium (K) which are present in varying amounts. The density of logged wood is between 400-750 kg/m3. The ash content is around 1% or less but is strongly dependent on bark and needle portion as well as the level of secondary contamination like adhering soil. Pelletizing of hardwood is more difficult and requires the adaption of the pelletizing process. Thus, softwood is most commonly used with spruce, fir and pine being the most common woody raw materials. Wood has been used for heating and fuel purposes for thousands of years. The wood industry has found itself on the verge of a revolution, however, because of the rapid increase in development and utilization of new wood-based solid and liquid fuels. Wood pellets represent an alternative to the use of coal, gas and even traditional wood logs and chips. Pellets in the U.S. are sold in bags by retailers, adding about $20 per ton in packing, Pellets and wrapping material. With an average price of $276 per ton as of November, pellets can be found for as low as $176 per ton, or as high as $600 per ton in the Northern U.S. approximately 35 new facilities, in addition to the previously existent 15 plants, have started operations. With an average capacity of 66,000 tons per year, and several new facilities planned for 2018 and 2019. As a whole there is a good scope for new entrepreneur to invest in this business.
Plant capacity: 16.0 MT/day Plant & machinery: 80 lakhs
Working capital: -T.C.I: Cost of Project : Rs 350 lakhs
Return: 26.00%Break even: 51.00%
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uPVC Profiles for Doors and Windows

The uPVC profile is basically an extruded section of a mixture of PVC with certain additives to make it suitable for making uPVC Windows and Doors. So, this very formulation technology is the key to make a Quality profile to make the Premium Windows. This formulation varies according to the climates. That's why the formulation for High UV Sensitive India requires a formulation combination of 2.5 mm. Wall Thickness & 8 Parts of Titanium Dioxide. Casements are widely popular for many reasons. Their design easily adopt to any style of home, providing operation and performance features that can't be matched by other operating windows. Doors are a must for everyone who likes the idea of keeping up with the time. Very elegant yet functional, these are made out of high-tech rust proof frames and rigid, extruded uPVC profiles. The Indian uPVC doors and windows market is expected to grow at a CAGR of 7.0% during 2015-2020. The major drivers of the Indian uPVC doors and windows market are increasing new housing construction and replacement activities Massive construction is underway to respond to this urbanization. It has been estimated that the total built space in India would increase five-fold from 2005 to 2030, and by then more than 60% of the commercial built space would be air-conditioned. Over the next 10-15 years, the share of uPVC is expected to grow over 30% in both new and replacement sales, majorly fueled by the large, high rise apartment projects in urban cities. As a whole entrepreneur can venture in this field will be successful.
Plant capacity: 8.3 MT/Day Plant & machinery: 126 lakhs
Working capital: -T.C.I: Cost of Project: Rs 654 lakhs
Return: 28.00%Break even: 57.00%
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Wood Plastic Composite (WPC)

WPCs are composites containing a wood component in particle form (wood particles/wood flour) and a polymer matrix. They are used in a variety of structural and non-structural applications ranging from component and product prototyping to outdoor decking. Wood plastic composites (WPCs) are roughly 50:50 mixtures of thermoplastic polymers and small wood particles. WPC can be manufactured in a variety of colors, shapes and sizes, and with different surface textures. WPCs made with wood-polypropylene are typically used in automotive applications and consumer products, and these composites have recently been investigated for use in non-structural building profiles. The Indian market for particle board and plywood is estimated in value terms, at over Rs. 37 bn. Of the total market The wood-plastic composites market is projected to reach US$2.6 bn in 2012. Analysts anticipate the market to expand at a CAGR of 10.80% during the period from 2013 to 2019 and attain a value USD 5.84 Billion by 2021, at a CAGR of 12.4% from 2016 to 2021. Market is poised to grow at a CAGR of around 13.2% over the next decade to reach approximately $9.7 billion by 2025. Based on application, the wood-plastic composites market has been segmented into building & construction products, automotive components, industrial & consumer goods, and others. Thus, due to demand it is best to invest in this project. Few Indian major players are as under • Aryan Enterprises Pvt. Ltd. • Bajaj Eco-Tec Products Ltd. • Best Board Ltd. • Divine Board Pvt. Ltd. • Mangalam Timber Products Ltd. • Nuchem Ltd.
Plant capacity: 10,000,000Sq.Ft./AnnumPlant & machinery: 144 lakhs
Working capital: -T.C.I: Cost of Project: Rs 558 lakhs
Return: 31.00%Break even: 63.00%
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Hydraulic Hose with Crimping Facility of Hose End Fittings

A hose is a flexible hollow tube designed to carry fluids from one location to another. Hoses are also sometimes called pipes (the word pipe usually refers to a rigid tube, whereas a hose is usually a flexible one), or more generally tubing. The shape of a hose is usually cylindrical (having a circular cross section). Hose design is based on a combination of application and performance. Common factors are size, pressure rating, weight, length, straight hose or coilhose, and chemical compatibility. Hoses are made from one or a combination of many different materials. Applications mostly use nylon, polyurethane, polyethylene, PVC, or synthetic or natural rubbers, based on the environment and pressure rating needed. Development in rubber and plastic technology led to substantial growth of hose pipe and almost all the hose pipe manufactured has components of rubber and plastic. The market was estimated at USD ~ billion during 2016 which has increased from USD ~ billion in 2011 registering a five year CAGR of ~% in 2011-2016. The resultant effect on the global market for hydraulic rubber hoses is a CAGR of 4.2% from 2014 to 2022. This market is expected to be valued at US$779.8 mn by the end of 2016 and US$1 bn by 2022. Entrepreneurs who invest in this project will be successful. Few Indian major players are as under • Bhagawati International Ltd. • Cosmos India Rubber Works Ltd. • Finolex Industries Ltd. • Finolex Plasson Inds. Pvt. Ltd. • Jain Irrigation Systems Ltd. • Kimplas Piping Systems Ltd. (1996)
Plant capacity: 1,000Pcs./DayPlant & machinery: 74 lakhs
Working capital: -T.C.I: Cost of Project : Rs 211 lakhs
Return: 27.00%Break even: 66.00%
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uPVC Pipes

uPVC pipes remain neutral to all transported fluids. uPVC is completely inert and is widely used for transporting liquids made for human consumption. Because of their mirror-smooth inside surface, uPVC pipes have minimum flow head loss. There is also no buildup of inside deposits. uPVC Pipes as per IS: 4985 being used in all conceivable applications ranging from Agriculture to sanitation, bore well to electrical ducts because of low cost, Low pressure features they became favorites of all farmers, builders and government departments. Unplasticized Polyvinyl Chloride (uPVC) Pressure and non pressure pipe system for cold potable water and other industrial uses. In India, the government is focused on developing pipeline network by increasing the availability of city-based gas distribution (CGD) and is aiming to cover approximately 200 cities by 2015. Also, with the pipeline network of India for oil & gas transport being lower at 19,103 kms as on April 2010, (32% penetration level) it represents a huge scope for growth for the pipe industry. Worldwide demand for plastic pipe is forecast to increase 4.6 percent annually through 2012 to 8.2 billion meters, or 18.2 million metric tons. Gains will be based on continued strong prospects in developing nations, particularly in China. In fact, China will account for 30 percent of overall length demand gains for plastic pipe between 2009 and 2020. Thus, as an entrepreneur this project offers an exciting opportunity to you. Few Indian major players are as under • Anant Extrusions Ltd. • Apollo Pipes Ltd. • Ashirvad Pipes Pvt. Ltd. • Ashish Polyplast Ltd. • Captain Pipes Ltd. • Duke Plasto Technique Pvt. Ltd.
Plant capacity: 4,302Meters/DayPlant & machinery: 189 lakhs
Working capital: -T.C.I: Cost of Project: Rs 632 lakhs
Return: 27.00%Break even: 58.00%
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Disposable Surgical Masks

A surgical face mask is also known as a procedure mask and purposely to be worn by health care professionals during operation procedures. It helps to catch the bacteria shed in liquid droplets and aerosols from the wearer's mouth and nose. A surgical mask is not to be confused with a respirator and is not certified as such. Surgical masks are not designed to protect the wearer from inhaling airborne bacteria or virus particles and are less effective than respirators. The TMR report reveals that the global sheet face masks market is expected to reach US$336.7 mn by the end of 2024. The global anesthesia face masks market is forecast to grow at a CAGR of 3.73% during the period 2016-2020. One trend that will boost market growth is the rising demand for disposable devices. Medical personnel worldwide are opting for disposable anesthesia face masks over traditional reusable masks. Reusable electrodes present risks of cross contamination, resulting in hospital-acquired infections or nosocomial infections. The CDC estimated that about 1.7 million people in the US have these infections every year, of which about 99,000 individuals die. which facilitates the development of new technologies and ensure a high quality product.
Plant capacity: 3,000Pcs. /DayPlant & machinery: 43 lakhs
Working capital: -T.C.I: Cost of Project: Rs194 lakhs
Return: 14.00%Break even: 51.00%
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Adhesive (Fevicol Type) Water Proofing Grade

Fevicol type adhesives come under the category of synthetic resins and latex adhesives are made from polyvinyl acetate is a thermoplastic, odorless, tasteless, non-toxic, essentially clear and colorless resin. WPA is the highest level of “wet strength.” This in itself is a misnomer in that all starch is water soluble. This type of adhesive would typically be used in the most demanding applications. In addition to using 1.5% to 2% “wet strength” resin in relation to the liquid volume of the batch, it is essential that additional starch be applied to the board. These are formulated from compounds like vinyl acetate polymers and copolymers (PVAC), ethylene vinyl acetate (EVA), acrylics, styrene-butadiene rubber (SBR), natural rubber latex and synthetic elastomers, and polyurethane (pur). Thus, as an entrepreneur this project offers an exciting opportunity to you. Few Indian major players are as under • Anabond Ltd. • Arofine Polymers Ltd. • C I C O Technologies Ltd. • Century Ply boards (India) Ltd. • D I C India Ltd. • F C L Technologies & Products Ltd.
Plant capacity: 3MT/DayPlant & machinery: 38 lakhs
Working capital: -T.C.I: Cost of Project : Rs 183 lakhs
Return: 27.00%Break even: 59.00%
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Pan Masala

Pan Masala is a balanced mixture of betel leaf with lime, areca nut, clove, cardamom, mint, tobacco, essence and other ingredients. It is an agricultural product with herbal properties, also available in hygienic pack and pouches. The ingredients in pan masala vary widely, depending on personal taste and region. the paan masala is consumed by all age groups and social classes. Most people across the world eat some mouth freshener after their meal or during leisure time. Meetha Pan Masala is an Indian sweet made with betelnuts, dry date, anise seed, cardamoms, saccharine menthol and artificial flavors. Indians are so addicted to flavoured tobacco — pan masala and gutkha to be precise — that despite the ban on its manufacture and sale in 11 states so far, consumers are still getting hold of their daily fix, courtesy contraband sales. Factors like its immense popularity, constantly increasing disposable incomes, convenient packaging, aggressive advertising campaigns by manufacturers and the large-scale switching of consumers from tobacco products to pan masala are currently encouraging the growth of pan masala market. According to IMARC group, the pan masala market has reached values worth around INR 35,459 Crores in 2016 growing at a CAGR of 16.5% during 2009-2018. We actively encourage a culture of innovation, which facilitates the development of new technologies and ensure a high quality product. Few Indian major players are as under • Alliance One Inds. India Pvt. Ltd. • Ashok & Company Pan Bahar Ltd. • Baba Global Ltd. • Dharampal Premchand Ltd. • Dharampal Satyapal Ltd. • Dhariwal Industries Pvt. Ltd.
Plant capacity: Sada Pan Masala: 165 Kgs/Day Meetha Pan Masala: 165 Kgs/Day Zarda Pan Masala : 170 Kgs/DayPlant & machinery: 12 lakhs
Working capital: -T.C.I: Cost of Project: Rs 191 lakhs
Return: 27.00%Break even: 54.00%
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Cotton Ball (Hospital and Cosmetic Use)

A cotton ball is a ball of soft fiber that is primarily used for medical or cosmetic purposes, but can be used for other purposes such as arts and crafts or cleaning. They originate from the cotton plant, which is a shrub that is found in sub-tropical and tropical regions throughout the world. Cotton grows in bolls which are located around the seeds of the plants. Although the cotton can be used in its natural form, the fibers can be spun into other products such as bed sheets and clothing or refined and sterilized for everyday and medical uses. Cotton balls have many uses in the home and in the world of beauty. Cotton is soft and can be used for delicate applications and for making your home smell fresh and clean. One bag of cotton balls in the home could be used for many different purposes, but here are a few of the most popular uses of cotton balls. Thus, due to demand it is best to invest in this project.
Plant capacity: 1,200 Pkts/DayPlant & machinery: 43 lakhs
Working capital: -T.C.I: Cost of Project: Rs 86 lakhs
Return: 29.00%Break even: 72.00%
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Information
  • 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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