PESTEL ANALYSIS:

Political:

APEDA offers financial assistance under various schemes, which seek to promote and develop
agro-exports. Financial assistance under these schemes is available to exporters, growers, trade
associations, governmental agencies. Some of the activities, which are eligible for financial
assistance, are:

a. Strengthening of market intelligence and data base through studies and surveys

b. Quality up gradation

c. Development of infrastructural facilities

d. Research and development

e. Development of packing quality

APEDA undertakes various projects for bolstering the exports of processed foods from the
country. Some of the projects currently undertaken by APEDA are setting up of cold storage for
perishable and cargo handling facilities at international airports, setting up of wholesale market
cum auction centers for flowers, quality management centre, vapour heat treatment lab and CA
container and stationary CA container experiment. It also provide the transport assistance to the
mango pulp exporter (refer annexure) The Government of India (GOI) had announced the
creation of Agri Export Zone (AEZ) in the EXIM POLICY 2001-02 with the objective of
promoting greater exports of fresh and processed agricultural produce from the country The
scheme is implemented by the Ministry of Commerce, GOI, through APEDA (the Agriculture
and Processed Food Export Development Authority), New Delhi – the nodal agency for AEZ.
( [Link]

Under AEZ all aspects of agriculture such as production, research, development, extension, post
harvest management and marketing are addressed in a focused manner for successful
implementation. For instance, modern production practices are introduced for production of
exportable quality produce and improved productivity. Similarly there is an emphasis on setting
up of appropriate produce-specific post harvest infrastructure and introduction of post harvest
practices, right from farm all the way to market.

AEZ are to be identified by the State Government, who would evolve a comprehensive package
of services provided by all State Government agencies, State agriculture universities and all
institutions and agencies of the Union Government for intensive delivery in these zones.
Corporate sector with proven credentials would be encouraged to sponsor new Agri export zone
or take over already notified Agri export zone or part of such zones for boosting agri exports
from the zones. Services which would be managed and co-ordinated by State
Government/corporate sector and would include provision of pre/post harvest treatment and
operations, plant protection, processing, packaging, storage and related research & development
etc. APEDA will supplement, within its schemes and provisions, efforts of State Governments
for facilitating such exports. Units in AEZ would be entitled for all the facilities available for
exports of goods in terms of provisions of the respective schemes. Government scheme under
National horticulture mission action plan for Andhra Pradesh too is boosting the mango
production in AEZ.

Technical Services Department of NABARD functions as a nucleus of experts to provide

Economic:

Economic prosperity of any developing country depends on the integration of agriculture with
industry. The dominance of farming can be enlarged from grain production to food processing.
The state is a leading producer of fruits (mango) and vegetables etc. Further, the State has the
second leading position in the production of horticulture crops and the production is expected to
reach 22.90 million tonnes by 2020. In addition, the State produces some of the finest varieties of
mangoes, sweet lime, grapes, pineapple, papayas, banana and guava. To achieve the targeted
growth in agri- sector, the State intends to promote investment of around US$ 17.07 billion by
2010, while the total investment until 2020 would be around US$ 39.02 billion. Hence future
prospects of the sector are bright. Availability of laborers in the area is another great opportunity
for the processing unit which will create employment in the given area.

SOCIAL:

The location of plant in Chittoor which is AEZ prevents or reduces the chances of any social
obligation to set up the processing unit. The setting up of processing unit will lead to the
employment generation in that particular area. It will also contribute to infrastructure
development of that area.

TECHNICAL:

The technical parameters are examined critically while preparing the project. Technical
judgment is made on the adequacy, availability resources. Locational advantage (AEZ) of the
processing plant justifies the technical feasibility and viability of the project in the following
aspects:

1. Consistent supply of raw material (mango) as Chittoor is agro –climatic zone of the mango

2. Availability of skilled and semi-skilled laborers since Chittoor is hub of processing units.

3. Good keeping quality of the product i.e shelf life (18months) ensures its availability
throughout the year for supply with in increase in capacity and production in due course of time.

4. Automized pulp production plant will assure quality as well as scaling up of production unit
which provide flexibility to increase capacity and hence allows expansion in future.
LEGAL:

Since project is located in AEZ, its easy to approach for certification like HACCP and ISO-
22000 Location has advantage of numerous mango farmers with whom company can enter into
contracts for procurement of raw material as per their requirement of production at reasonable
price .In addition firm has conducive environment to get registered as small scale industrial
undertakings.