A
journey of facilitation
Edition: #4
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About FaMeTN:
We are the Bureau for Facilitating MSMEs of Tamil Nadu (FaMeTN), an organisation under the MSME Department, Government of Tamil Nadu. We support MSMEs with access to finance and markets, and nudge them along the path of sustainability. The FaMe Newsletter is a quarterly one, and through this newsletter we hope to create a greater conversation with you.
A word from the MD
Thiru L. Nirmal Raj, I.A.S.
Managing Director, FaMeTN
I am pleased to present the fourth edition of the FaMe Newsletter, which highlights the Government of Tamil Nadu’s commitment to sectoral transformation within the MSME ecosystem. This edition focuses on two pivotal organisations under the aegis of the MSME Department: the Tamil Nadu Food Processing and Agri Export Promotion Corporation (TNAPEx) and the Tamil Nadu Electric Vehicle Task Force (TNEVTF).
Sectoral transformation is central to our vision of inclusive growth and economic resilience. We aim to drive growth in vital sectors across the state. This aligns with initiatives like One District One Product (ODOP), which contribute to the holistic advancement of our MSME ecosystem. In the bigger picture, our department prepares MSMEs for the future across all sectors, from providing basic needs to leading innovation worldwide.
Our collaborative approach with national and international institutions ensures that Tamil Nadu attains development in all sectors through industrial innovation without compromising its cultural diversity. TNEVTF, developed in partnership with the Industries, Investment Promotion & Commerce Department, CODISSIA, and the World Resources Institute, represents our forward-looking strategy in electric mobility. TNAPEX works with various departments nationwide, such as APEDA and NABARD, to promote food processing and agri-product export in Tamil Nadu.
Please explore the insights within this newsletter, which detail the transformative initiatives in Electric Mobility and Food Processing sectors. These interventions signify our commitment to nurturing a future-ready industrial ecosystem, adhering to our Hon’ble Chief Minister’s goal of making Tamil Nadu a $1 trillion economy.
Thank you for the continued efforts of our MSMEs to drive Tamil Nadu’s growth.
Driving Sectoral Transformation: Empowering Tamil Nadu’s MSMEs
for a Trillion Dollar
Economy
Tamil Nadu has been a forerunner in implementing sector-specific industrial ecosystems since time immemorial. The pearl fishing industry of the Neidhal Nilam people, the honey extraction practices of the Mullai Nilam people during the Sangam era, and terracotta pots unearthed in the Keeladi excavation bear testimony to Tamil Nadu’s early adoption of a sector-specific growth approach.
Following the footsteps of our ancestors, the MSME Department, the Government of Tamil Nadu has embraced a pluralist approach to foster sectoral transformation across the state. For instance, textile industries may benefit from targeted schemes to upgrade power looms, while the tea-processing sector may require advanced tools and a cooperative society model to enhance growth. This highlights the necessity of tailoring policies to the unique requirements of diverse industries. Our strategies aim to develop all three key sectors—primary, secondary, and tertiary— as well as the fourth, knowledge-driven sector.
Post-COVID-19, the MSME sector faced unprecedented challenges in sustaining their business. Recognising this, a committee of eminent experts conducted an in-depth study of Tamil Nadu’s sectoral landscape and provided actionable recommendations. The Government of Tamil Nadu has created a roadmap for implementing these suggestions, ranging from land allocation to technology transformation and establishing dedicated organisations for selected industrial sectors. The initiative involves incorporating new resources into the established industries and also bringing up innovative new industries through technology. This approach provides a holistic framework to help MSMEs gain a competitive edge.
Organisations like Tamil Nadu Food Processing and Agri Export Promotion Corporation (TNAPEx),
Tamil Nadu Coir Business Development Corporation (TANCOIR), Salem Starch and Sago Manufacturers Service Industrial Cooperative Society (SAGOSERVE), Tamil Nadu Electric Vehicles Task Force (TNEVTF), Tamil Nadu Small Tea Growers’ Industrial Cooperative Tea Factories’ Federation (INDCOSERVE) and the 164 other industrial cooperative societies under the ambit of the MSME Department, address sector-specific challenges for MSMEs and work towards technological transformation and sustainable development, with expertise and precision. For example, TNEVTF exemplifies Tamil Nadu’s pioneering approach as the first state to establish a dedicated organisation to promote electric vehicle transitions among MSMEs manufacturing automobile components. TNAPEx empowers farmers, Farmer Producers Organisations (FPOs) and food-processing MSMEs to access the International markets. To assist MSMEs from different sectors with access to new markets, FaMeTN conducts Reverse Buyer-Seller Meet, exhibitions and expos. These events ensure new business opportunities for MSMEs belonging to the particular sector. The aforementioned initiatives create a level playing field for MSMEs in the prescribed sectors to thrive globally. To support the sectoral growth among MSMEs, FaMeTN conducted a Reverse Buyer-Seller Meet in Coimbatore in November 2024, for MSMEs belonging to the engineering sector. The event comprised more than 300 MSMEs and 28 buyers from 15 countries.
Turn through the pages of this newsletter to understand the interventions provided by the MSME Department, Government of Tami Nadu for facilitating MSMEs in the food processing and the electric vehicles sector that align towards the Hon’ble Chief Minister of Tamil Nadu’s goal of making Tamil Nadu a $1 trillion economy.
REVERSE BUYERSELLER MEET
FaMeTN, in collaboration with the Federation of Indian Export Organisations (FIEO), organised a Reverse Buyer-Seller Meet (RBSM) in November 2024 for MSMEs in the engineering sector to sell their products to International buyers. This event provided new opportunities for MSMEs to gain the following opportunities:
• Direct interaction with the International Buyers.
• In-depth understanding of the buyers’ requirements.
• New business opportunities with buyers.
This event took place in the CODISSIA Trade Fair Complex, Coimbatore. Around 300 MSMEs participated in the RBSM, interacting with 28 International buyers from 15 countries. 48 MSMEs have signed MoUs worth Rs 90.16 crore with buyers, out of which Rs 1.85 crore is from 18 first-time exporters. Additionally, buyers were interested in collaborating with other MSMEs to make business worth Rs 35.4 crore, with a total potential of Rs 125.56 crore worth of business. The Hon’ble Minister for MSME presented the interventions of the MSME Department, Government of Tamil Nadu and interacted with the International buyers.
As a part of our initiativees for the FY 2024-2025 FaMeTN has facilitated MSMEs to attend international and National Expos to gain new access to markets. Explore some of the expos listed below.
VENDOR DEVELOPMENT PROGRAMMES
Around 220 MSMEs attended the Vendor Development Programmes organised by FaMeTN in July & November 2024. The experts from Public Sector Enterprises shared their insights on their procurement policies. An additional session on the awareness of the Government e-marketplace (GeM) was created for MSME.
EV - B2B MEETS
Around 84 MSMEs participated in the Vendor Development Programmes on Electric Vehicles conducted by FaMeTN and the Tamil Nadu EV Task Force in October and November 2024. Thought leaders from the international EV industry shared their insights with MSMEs into adopting the EV ecosystem.
INDIA - EUROPEAN UNION BATTERY RECYCLING TECHNOLOGY EXCHANGE
14 MSMEs participated in the Vendor Development Programme organised by FaMeTN and Tamil Nadu EV Task Force on 8 October 2024 at the SIDCO Corporate Office, Chennai. Startups from the European Union, Ecomet Refining (Italy), and Eneris (Poland) presented their cutting-edge recycling and upcycling processes.
July 2024
SIDCO Corporate office, Chennai
June 2024
CODISSIA, Coimbatore
October 2024
CODISSIA, Coimbatore
October 2024 | SIDCO Corporate office, Chennai
November 2024 - Hilton, Chennai
TN APEx: Foundation to the Future of Tamil Nadu’s Food Processing Sector
Tamil Nadu has long been renowned as a global hub for spices, fisheries, and honey. References from Sangam literature and historical accounts from Greek and Egyptian travellers affirm the state’s advanced maritime trade. Today, Tamil Nadu leads India’s food processing sector in hosting the highest number of micro and small food processing enterprises, contributing 7.9% to the nation’s food processing output.
To further strengthen the state’s pivotal role in national food production and align with the Hon’ble Chief Minister’s goal of making Tamil Nadu a $1 trillion economy, the MSME Department has established the Tamil Nadu Food Processing and Agri Export Promotion Corporation (TNAPEx). This initiative supports farmers, FPOs, and food processing enterprises in accessing global markets and solidifying Tamil Nadu’s position as a leader in the food processing sector.
VISION
To make Tamil Nadu, a global leader in the food processing sector.
Initiatives of TN APEx
Food Processing Clusters
To provide farmers with state-ofthe-art common facilities for crop pre-production, production, and
MISSION
To set up food export zones, incorporate food processing clusters, market new crops, analyse global trends to support farmers, FPOs and food processing enterprises to reach global success and contribute to the Hon’ble Chief Minister of Tamil Nadu’s goal of making Tamil Nadu, $1 trillion economy.
Tamil Nadu Agro-Industrial Corridor (TNAIC)
To address infrastructural gaps, create robust sectoral linkages, and
B2B Meets
To provide a platform for direct interactions between farmers, FPOs, food processing enterprises, and global buyers. These events open new market opportunities and facilitate long-term collaborations, driving growth and global competitiveness.
Prime Minister’s Formalisation of Micro Food Processing Enterprises (PMFME)
The PMFME scheme is designed to empower micro-food enterprises by improving their access to finance, enhancing competitiveness, and providing comprehensive branding and marketing support. Additionally, the scheme offers infrastructure assistance, creating a conducive environment for microfood enterprises to thrive.
Events
International Hub for Agricultural Exports
TNAPEx conducted the international hub for Agricultural Exports to emphasise high-value value-added food products with a special focus on perishable food.
Export Facilitation Centres
To develop new export potential of value-added agricultural products with global demand. These centres connect farmers, FPOs, and food processing enterprises with national and international traders, enabling access to international markets and enhancing their value.
Integrated Food Parks
To boost agro-processing and facilitate seamless operations for farmers, FPOs, and enterprises, guide them to a streamlined production approach and market access.
B2B MEET
Around 261 stakeholders (farmers, FPOs, and food-processing enterprises) attended the B2B meeting conducted by TNAPEx on agricultural, horticultural, processed food products, and traditional rice.
Workshop on Agri Export Promotion and Product Development
Around 100 stakeholders (FPOs, Food Business Operators, domestic traders and Exporters) attended the Capacity Building Training Program for Food Business Operators conducted by TNAPEx. The subject matter experts provided insights on phytosanitary measures and export norms for MSMEs
Redefining the Concepts of Food Processing for Transformative Growth
Article by - Dr K Alagusundaram, MD/CEO, TNAPEx
The Government of Tamil Nadu, under the leadership of the Hon’ble Chief Minister, envisions a trillion-dollar economy by 2030. Achieving this ambitious goal is feasible if every sector, including agriculture and allied sectors, fully realises its growth potential. Agriculture currently contributes 5.2% to the GSDP, and to meet the target, it must contribute a similar or greater share. If this growth is achieved, it will benefit all stakeholders, especially farmers, improving livelihoods and transforming Tamil Nadu’s socio-economic landscape.
Tamil Nadu, blessed with diverse agro-climatic zones and abundant agricultural production, contributes 3% of India’s food grains, 12% of fruits, and 7% of vegetables. Despite this, only 2% of fruits and vegetables, 10% of food grains, and 35% of milk are processed. Traditional food processing, like ready-to-eat and ready-to-cook products, adds value, but the economic returns are limited, ranging from 3 to 7 times the raw
Rice Husk Silica:
Tamil Nadu produces nearly 8 million tons of paddy every year, and the remaining husk of paddy is 20%, yielding about 1.6 million tons of rice husk. The husk is generally burnt in the rice mills for the production of steam and heat for parboiling. The leftover is called Rice Husk Ash (or RHA). Tamil Nadu produces about 3,20,000 tons of RHA annually. The RHA is a rich source of amorphous silica and contains about 85 to 90% of it. The silica produced from RHA has numerous industrial applications such as for the production of biofuels, in ceramic industries, as a reinforcing agent in rubber and plastics, as a filler in paint and coatings, additives in food beverages, in drug delivery and tissue engineering, wastewater treatment plants, and in a purified form in solar collectors among other applications. The market values of RHA silica are around Rs. 75 per kg in an impure form and shall go as high as Rs. 250 in a purified form. A raw material which sold at a paltry Rs. 1.5 to Rs. 2.0 per kg is a value-added about 40 to 120 times, which can never happen in the production of consumer-preferred food products. If 50% of the available RHA is converted to silica, then the total economic return to the state will be Rs. 4,000 crores per annum.
Rice bran protein extraction:
Tamil Nadu produces approximately 6.5 lakh tons of rice bran annually. If the entire rice bran undergoes oil extraction, it yields around 5 lakh tons of De-Oiled Bran (DOB) per year. Currently, DOB primarily caters to the production of animal nutrition products for industries such as cattle, poultry, aquaculture, pet care, and swine.
DOB contains 12-15% protein and an equivalent amount of dietary fibre. Extracting these high-value compounds can significantly enhance economic returns. For instance:
The market price of raw de-oiled bran ranges from Rs 12 to Rs 25 per kg.
In contrast, protein extracted from rice bran fetches Rs 700 to Rs 1,000 per kg—a value addition of 30 to 40 times.
If 50% of the available protein and dietary fibre from DOB is extracted, the economic returns could exceed Rs 5,000 crore annually.
These are just two examples of the vast potential in extracting high-value, low-volume (HVLV) compounds from agricultural produce, biomass, and food industry by-products. Tamil Nadu’s abundant agricultural resources and food processing wastes hold the potential for transformative economic growth. Leveraging these opportunities can contribute significantly to achieving the Hon’ble Chief Minister’s vision of making Tamil Nadu a one-trillion-dollar economy by 2030.
TAMIL NADUEMBRACING ELECTRIC MOBILITY FOR THE PRESENT TO LEAD THE FUTURE
Tamil Nadu has consistently been at the forefront of industrial transformation, incorporating modern ecosystems into its economic framework. Under the visionary leadership of the former Hon’ble Chief Minister of Tamil Nadu, Muthamizharaignar Dr. Kalaignar, the state pioneered the establishment of the Small Industries Development Corporation (SIDCO) in 1970 to empower MSMEs.
The emergence of Electric Vehicles (EVs) marks a paradigm shift in global mobility, driven by the need to address the finite availability of fossil fuels. Staying ahead of the curve, Tamil Nadu became the first state in India to introduce a dedicated Electric Vehicle Policy, laying the foundation for innovation and enterprise in the EV sector.The Tamil Nadu Electric Vehicles Task Force (TNEVTF) is an expert committee set up by the Government of Tamil Nadu to accelerate the growth of the Electric Vehicle (EV) industry in the state.
The task force aims to promote the adoption of Electric Vehicles across various sectors. It seeks to attract investments from domestic and international sources. Another key objective is to create employment opportunities through the EV ecosystem. The committee also focuses on positioning Tamil Nadu as a global leader in EV manufacturing and exports.
The TNEVTF addresses key sectoral challenges, including infrastructure gaps, investment bottlenecks, and skill shortages, through targeted interventions in policy, infrastructure, and talent development.
Role of the MSME Department, Govt of Tamil Nadu in TNEVTF
The MSME Department is the foundation of TNEVTF, enabling small businesses to transition towards EV component manufacturing and innovation. Tamil Nadu’s MSMEs are evolving into essential suppliers for OEMs, producing everything from traditional engine components to advanced battery technologies. This inclusivity empowers MSMEs to participate in the supply chain of EV OEMs.
VISION
MISSION To establish Tamil Nadu as a global leader in EV manufacturing and innovation. To create an enabling environment for EV adoption, attract strategic investments, and integrate MSMEs into the EV supply chain.
Stakeholders of TNEVTF
The state’s focus on the EV sector represents not just an industrial initiative but a pathway towards a prosperous future. TNEVTF will work towards making Tamil Nadu attain the status of global EV leader, thereby catering to the more significant trajectory of the Hon’ble Chief Minister’s vision of a $1 trillion economy.
Offers skill development and vocational training tailored for EV jobs.
Attracts investments and promotes EV exports. Manages financial resources for infrastructure development in emerging sectors.
Advances R&D in EV technology and innovation.
Supports academic and professional training in EV engineering.
Directs investment strategies and policy frameworks.
Allocates land and infrastructure for EV manufacturing units. Provides funding, mentorship, & networking support to EV startups.
Strengthens EV supply chains through strategic partnerships.
Develops specialised industrial infrastructure for EV needs.
Debunking the EV myth
Why EVs?
Electric vehicles (EVs) offer several advantages over Internal Combustion Engine (ICE) vehicles. The total cost of ownership for EVs is lower, with two-wheelers costing Rs 1.55/km and three-wheelers Rs 1.34/km, compared to Rs 2.87/km and Rs 2.61/km for ICE vehicles, respectively. Additionally, EVs produce zero tail-pipe emissions, ensuring cleaner air, and possess advanced technology, making them a modern choice for transportation.
How difficult is it for MSMEs to transition to an EV ecosystem?
Challenges That MSMEs Might Face in the EV Transition:
Technological Challenges: Transitioning from traditional ICE vehicle components to EV components involves a significant technology gap. EV manufacturing leans towards software and semiconductors, unlike the mechanical focus of ICE vehicles, making it difficult for traditional MSMEs to adapt.
Skilling Challenges: The EV sector demands highly skilled manpower, and the current workforce may require upskilling to meet these new technological requirements.
Market Uncertainty: The EV market is still developing, making projections uncertain. MSMEs face risks in investing without clarity on returns, causing hesitation in committing to the transition.
Government Support: MSMEs require robust government support in terms of incentives, infrastructure, and policy to effectively establish their presence in EV manufacturing.
What is Tamil Nadu’s target in the EV industry?
Tamil Nadu has set an ambitious goal of achieving $69 billion in revenue from the EV industry by 2030. Additionally, the state aims to generate 35 lakh employment opportunities in the EV sector over the next five years, underscoring its commitment to becoming a global hub for electric vehicle innovation and manufacturing. This vision aligns with Tamil Nadu’s broader economic growth and sustainability objectives.
‘EVs are sustainable’. Is this statement a myth or a reality?
Electric vehicles (EVs) are environmentally safer than ICE vehicles. They produce zero tail-pipe and sound pollution, significantly reducing their impact on air and noise quality. An EV is made with fewer components than ICE vehicles, and hence the manufacturing energy required for EVs is less. When EVs are powered by a renewable energy source, they operate without any negative environmental side effects.
Challenges in the battery technology for EV adoption.
Battery technology in EVs faces several challenges. Limited range per charge (measured in kWh) remains a critical concern for users. Afterlife applications, such as recycling, are underdeveloped, leading to a “use and discard” approach. The lack of standardisation hinders serviceability across agencies. Technological limitations, especially with lithium LFP and NMC batteries, restrict efficiency and performance. Moreover, power efficiency needs significant improvement to optimise energy usage and extend battery life. Addressing these issues is essential for advancing EV adoption and sustainability.
What are the Government of Tamil Nadu’s initiatives to address the lack of charging infrastructure?
The Tamil Nadu Government has established the Tamil Nadu EV Task Force to build a robust charging ecosystem across the state. The task force aims to set up charging stations in all government buildings, institutions, and six key cities, including Chennai, Coimbatore, Hosur, Madurai, Tiruchirappalli, Tirunelveli, and Salem. This initiative is targeted for completion by the end of 2025, fostering seamless EV adoption and enhancing accessibility.
Thiru Srinivasan, with 30+ years in mechanical engineering, has witnessed industries reshape regions. Opting for an MS at Ohio State over Boston University to pursue his passion, he has advised top EV companies, including Ather. Now, he leads Tamil Nadu’s EV Taskforce, driving the state’s future of transportation and mobility. About our expert:
Kalaignar Kaivinai Thittam
Fuelling the growth of artisans & craftspersons of Tamil Nadu.
Scheme Benefits
Access to Finance: Provide collateral-free loans for artisans up to Rs. 3 lakh, with a subsidy of up to Rs. 50,000 and an interest subvention of up to 5%.
Skill Development: Curated training programs to upskill and upscale artisans.
Access to Technology: Facilitate access to modern technology and equipment.
Access to Markets: Empower artisans to participate in exhibitions and B2B meets and export their products.
Eligibility Criteria
Minimum Age: 35 years.
Prior Experience: 5 years & above.
Eligible trades under Kalaignar Kaivinai Thittam
