Market Need Analysis and Supply Chain Strategy for JGT NJB - CFC/IJSG/21 Strictly Private and Confidential September 2013 Submitted by PwCPL

Market Need Analysis and Supply Chain Strategy for JGT

NJB - CFC/IJSG/21

Strictly Private and Confidential

September 2013

www.pwc.com

Submitted by PwCPL

PageSection Overview

Table of Contents

This proposal does not constitute a contract to perform services. Final acceptance of this engagement by PricewaterhouseCoopers is contingent upon successful completion of PricewaterhouseCoopers' acceptance procedures. Any engagement arising out of this proposal will be subject to the execution of our formal engagement contract, including our standard terms and conditions and fees and billing rates established therein.

1 Background 1

2 Key Findings 7

3 Recommendations 27

PwCSeptember 2013

Section 1Background

1NJB - CFC/IJSG/21 • Market Need Analysis and Supply Chain Strategy for JGT

PwCSeptember 2013

• PwC has been assigned the responsibility of identifying the market need of Jute Geotextiles (JGT) for three specific uses – erosion control of river bank, erosion control of hill slopes and construction of rural roads. In addition, this engagement aims to identify improvement opportunities in the JGT supply chain to meet the market need.

• Key Outputs:

- Strategy option report to address the market needs for JGT

- Analysis of current supply chain situation and identification for opportunity for improvement.

Objective

2

Section 1 – Background

NJB - CFC/IJSG/21 • Market Need Analysis and Supply Chain Strategy for JGT

PwCSeptember 2013

• To achieve the objective following approach was taken:

- Domestic and international field study undertaken to assess the market and potential application of JGT

- Interaction with key stakeholders to get inputs with respect to opportunities and challenges faced by the sector

- Demand side analysis of JGT in domestic and international market

- Industry analysis and future potential for JGT

- Submission of Strategic Option Report, highlighting the action plan for the sector

Approach

3



PwCSeptember 2013

• The information collection was aimed at :

- Estimating the demand for Geotextile segment (both domestic and global, present as well as growth trends)

- Estimate the present market for Geotextile and the its sub segments which include Jute Geotextiles as well their growth trends

- Estimate the demand for three focus usages – convert the same to JGT usage

- Local policies and their relevance

- Gain insights into technical issues

- Case-studies on previous experiences of JGT applications and profile of the users

- Awareness and users perception and feedback about JGT

- Primary discussion with stakeholders to arrive at an estimation of JGT contribution in the entire natural geotextile segment which would give a rough estimate of the supply side projection for JGT

Methodology of the research

4



The assignment is divided into three phases: (i) secondary information collection; (ii) primary survey; (iii) assessment of market potential.

PwCSeptember 2013

• Strategy option report - PwC submitted the “Strategy Option Report” on 4th April, 2011 which included the following:- Domestic and global technical geotextile consumption and projections

- Value drivers for JGT based on stakeholder interviews

- Analysis and structure of the JGT industry

- Potential and sectoral opportunities for JGT Industry (India, Bangladesh and Export markets)

- SWOT for JGT and strategy plan for promoting JGT

• Interim report - PwC submitted the “Interim Report” on 2nd February, 2012 which included the following- Estimation of market potential for JGT in the domestic and international markets

- JGT supply chain analysis

- Supply chain issues and recommendations

- International marketing strategy for JGT

- Recommendation and implementation roadmap for strategy options

What we delivered

5



PwCSeptember 2013

Ongoing activities

6



No. Activities to be Implemented Plan Output

1

Documentation of the modus operandi regarding standardization of the product in European countries and suggest options for JGT to get access to these committees.

Discuss with stakeholders like NSRI

Reach out to international standards experts and understand the standard setting process

Study to provide information on how options for jute manufacturing countries or otherwise natural GT champions to get access to these committees

Suggest the way forward for JGT in international markets

JGT standardization approach for international markets

2Other international markets for JGT

PwC to conduct a high level assessment of other potential international markets for JGT

List of other potential markets

3 Final report preparationConsolidation of findings and final report preparation

PY4 report

PwCSeptember 2013

Section 2Key Findings


PwCSeptember 2013

Global Market Scenario

• Demand for natural geotextiles is expected to reach a figure of 480 million sqm in 2018 against the projected global geotextiles demand of 4760 million sqm.

• The major share of the global demand will generate in Asia Pacific region (53%) in 2018 followed by North America (19%) and Western Europe (15%)

• Coir geotextiles is the major competitor to JGT in natural geotextiles sector

• Present consumption of JGT is around 50-55 million sqm globally.

PwC has submitted PY I -III activity reports suggesting strategy options. The salient features of the strategy options are as follows……. 1

8

Section 2 – Key Findings


Item 1998 2003 2008 2013 2018Geotextiles Demand 1370 2030 2810 3680 4760Synthetic Geotextile Demand 1318 1890 2600 3345 4280

% Share 96% 93% 93% 91% 90%

Natural Geotextile Demand 52 140 210 335 480% Share 4% 7% 7% 9% 10%

PwCSeptember 2013

Domestic scenario - India

• Given a scenario that JGT captures a mere 10% of the total potential market which includes rural road, river bank erosion, hill slope erosion and railways embankment, this would translate to a consumption of:

- Yearly demand of 97 million sq.m valued at around INR 387 crores per annum (USD 81 million) and will benefit the Jute industry and farmers.


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Volume/ yr (Mn Sq.m) Value/ yr (INR Cr.) Value/ yr (USD Mn)Rural Roads - PMGSY 39 156 33River Bank Erosion 19 76 16Hill Slope Erosion 10 39 8Railways 29 116 24TOTAL 97 387 81

Potential J GT UsageSectors

PwCSeptember 2013

Domestic scenario - Bangladesh

• Given a scenario that JGT captures a mere 5% of the total potential market which includes rural road, river bank erosion and railways embankment, this would translate to a consumption of:

- Our estimates of potential sector-wise usage are also shown in the table below. Even the most conservative estimates projects a yearly demand of 24 million sq.m valued at around BDT 180 crores which is equivalent to USD 22 million.


10



Volume/ yr (Mn Sq.m) Value/ yr (BDT Cr) Value/ yr (USD Mn)Rural Roads 23.0 172.0 21.0River Bank Erosion 0.8 6.0 0.7Railways 0.2 2.0 0.2TOTAL 24.0 180.0 21.9

SectorsPotential J GT Usage

PwCSeptember 2013

• Existing share of natural geotextile in India is estimated at 10%-11% based on Ministry of Indian Textiles estimates. The natural Geotextile market is dominated by coir and jute geotextiles and current market share of JGT is around 4-5%.

• The promotional efforts being made by National Jute Board are sure to yield results and take the market share of JGT from the existing 4-5% to a moderate 10% share of the projected demand.

• Inclusion of JGT in the Schedule of Rates published by various departments has lead to greater visibility of JGT and therefore greater demand.

• Standardization and normative references has also helped in establishing JGT as a tried and tested material for application in stabilization of soil through vegetation against erosion of landscape and soil slopes as well as protection of river bank against erosion and similar application involving separation and filtration.

• Based on our discussion with sector experts, it was concluded that the share of natural fibres in the geotextile market has increased dramatically due to considerations of sustainability and biodegradability. But within this increased share for natural fibres jute has gained less than proportionately. Based on discussion it was concluded with proper marketing impetus JGT has the potential to gain more than 10% of the market.

• Based on these findings we have come to the conclusion that the existing market share of 4-5% for JGT can be taken up to 10% given the current efforts and increased visibility of JGT amongst various stakeholders as a positive outcome of the efforts and hard work of NJB and the other project stakeholders.

Underlying assumptions – market share estimation

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PwCSeptember 2013

• Jute Geotextiles is largely exported from India under HS code 63051080 which is categorized as Jute Soil Saver. Exports under the code for the last three years are highlighted below:

• JGT is also exported other than the code provided, which goes unaccounted

International export potential of JGT ..... 1Current scenario

12



JGT Export (India) 2007-08 2008-09 2009-10 CAGR

Value (INR Cr.) 10.44 7.83 6.53 -21%

Volume (MT) 5883 3751 3417 -24%

• Australia accounted for the highest share of exports in the year 2009-10 followed by USA, Greece, Germany and South America. Almost all the export countries witnessed negative growth compared to 2007-08 performance. Exports to USA dropped by nearly 54% compared to 2007-08.

• Like India JGT is exported from Bangladesh under the HS Code-53109010 as “Jute Soil Saver”. Export data not available for exports from Bangladesh

Export Data (MT) 2007-08 2008-09 2009-10 Growth

Australia 343.94 568.16 761.41 49%

USA 3242.39 1542.67 692.47 -54%

Greece 288.36 280.37 408.30 19%

Germany 776.18 311.80 408.03 -27%

South Africa 117.72 403.39 403.41 85%

Peru 0.00 16.65 238.36 278%

Italy 405.88 298.38 121.73 -45%

Spain 17.44 10.00 110.00 151%

France 186.28 113.37 87.63 -31%

Belgium 153.86 39.97 61.20 -37%

Korea 5.36 1.56 53.04 215%

UK 80.36 64.19 25.75 -43%

Czech Republic 36.61 53.47 22.84 -21%

Japan 0.00 9.00 19.80 48%

Others 228.62 38.02 3.03 -88%

PwCSeptember 2013

• Based on Erosion Control Technology Council (ECTC) estimates the consumption share of organic erosion control products by region can be estimated as follows:

• Moreover the world consumption share of organic erosion control products by type can be estimated as follows:

• In contrast to the very limited promotion of jute for geotextiles, there have been a series of efforts to research the market and promote use of coir. It started off with looking at geotextiles as one of the high value export possibilities being looked at for coir. With time it became apparent that it was the most promising area and has taken coir from virtually negligible market share (some white coir netting) to around 22% of the natural products used for soil erosion in the international market.

International export potential of JGT ..... 2Potential international markets

13



Product Type Market Share (%)

Excelsior/ straw 59

Coir 22

Jute 19

Region Market Share (%)

North America 66

Europe 20

Rest of the world 14

PwCSeptember 2013

• The North American geotextile market is famous for its vast opportunities. The region accounts for roughly 21% of the global geotextile market which corresponds to roughly 770 million sq.mt.

• In USA it is a Government mandate that no land area can be left untreated with respect to soil erosion be it private property or public. Hence the market in USA is more customer focused market unlike others.

• Erosion control is the most relevant market segement for potential use of Jute Geotextiles. The market size of this segment is estimated at around 43 million sq.mt.

International export potential of JGT ..... 2US market for JGT

14



Separation & Stabilization. 28%

Ashpalt Overlays. 26%

Lining Systems. 19%

Drainage Applications. 11%

Reinformcement. 6%

Erosion Control. 5%

Silt Fences. 5%

Figure : North American Geotextile Applications • Two of the biggest contributors to erosion are

construction sites and urban runoff.

• As a result, two big consumers of erosion control mats (ECMs) are construction companies and landscape companies.

• Companies that do highway and road construction make up a large sector of the customer base as well.

• Other major markets for ECMs are landfills, urban and suburban drainage areas (for example, ditches, and spillways), building construction, and landscaping.

• The US geotextile market is growing, but the supply continues to outpace the demand due to steady capacity increases by manufacturers of synthetic geotextiles. This is one of the key reasons that natural geotextiles are yet to establish a strong hold in the market.

PwCSeptember 2013

• Europe accounts for approximately 16% of the global geotextile market which corresponds to roughly 590 million sq.mt. Market share of natural geotextile is around 7% of the total geotextile market. Based on this it can be estimated that the potential market for Jute Geotextile in Europe is approximately 41 million sq.mt.

• Europe has imposed an additional fee (as fine) on the usage of synthetics for landscaping purpose, which will make synthetics less price competitive. Keeping in mind these factors, there seem to be a good export potential for Jute Geotextiles.

• JGTs export to European countries is on the rise, mostly due to the increase of its use in hill slope management. As the application of JGT in soil erosion management in European countries proved fruitful, they’re very much optimistic about expanding its use that will open up a big global market for jute geo textiles.

International export potential of JGT ..... 2European market for JGT

15



PwCSeptember 2013

• Jute geotextiles, being technical construction materials, their marketing and distribution is linked to a large extent with specialist engineers, who "specify" the use of a particular geotextile material based on its suitability for the intended application.

• Although a small volume of geotextiles is sold directly to retail buyers, the marketing and distribution of the major portion of such products takes place according to the pattern described below.

- Client: The "client" for geotextiles is the construction supervisor. He is not usually the direct buyer of the product but rather the person responsible for the construction work in which the geotextile is to be used.

- Consultant/ Specialist Consulting Engineer: In the construction industry, the client usually engages an outside consultant, a "specialist consulting engineer," to make a detailed technical design and profile for the construction job. The consultant is the specifier of the product. The marketing effort of a geotextile exporter therefore begins with the consultant

- Contractor/Sub-Contractor: The job is then handed over to one or more contractors, who may decide to subcontract various portions of the work to other companies. The contractor or the subcontractor then buys the materials, as specified by the consultant, from the manufacturer,

- Intermediaries: Agents, distributors and importers make the final sale of the product to the applicator, that is, to the contractor or the subcontractor

International export potential of JGT ..... 3Marketing channels

16



PwCSeptember 2013

• Lack of awareness and poor end users perception

- Natural products show variability in physical properties such as warp and weft density, roughness of the fibers etc. which may be taken as inconsistency of product quality. In spite of the studies that have been carried out to allay these concerns, some end users are yet to be convinced of the true environmental credentials of jute products.

• Inconsistent supply of JGT

- International end users have been disappointed that they are unable to source adequate quantities of jute erosion control geotextiles. The supply side of the market is not very responsive to demands and end users would rather specify competing products than wait for the next consignment of jute geotextiles to be imported.

• Standards for jute geotextile

- For soil erosion control geotextiles, few standards have been formulated or set to date. On the other hand, standards that do exist already concern geotextile properties that actually have no influence on erosion control performance. The standards committees have a tendency to set criteria with which they are familiar, because of this JGT does not comply with most of the standards that has been set for geotextile application world over.

International marketing issues and constraints

17



PwCSeptember 2013

• Commercial interest in formulating geotextile standards

- There is concern in the natural geotextile sector that the synthetics lobby on the Standards Committees is attempting to marginalize natural products, such as jute and coir. This is done by deliberately setting technical specifications that can never be met by the natural products, but that can be met easily by the synthetic products.

• Local manufacturing facilities

- With market going global, a majority of Indian jute industry is still following the primitive methods of manufacturing jute products and hence the products made find it difficult to compete with Synthetic geotextiles.

- Many of the leading Jute manufacturers have taken initiatives to improve existing facilities and ensure compliance with international procurement standards

International marketing issues and constraints

18



PwCSeptember 2013

• Jute Geotextiles (JGT) evidently poses no environmental threat.

• Being biodegradable, JGT ultimately coalesce with the soil on which it is laid, adding nutrients to it and retaining water for quicker growth of vegetation.

• Due to a growing environmental, health and social awareness the demand for sustainable materials, products and services are increasing.

• Besides the protection provided by jute geo-textiles, their biological properties compared to synthetic fibres are a key characteristic. Some important aspects include:

- Improved growing opportunities for vegetation

- Animals can dig through the material

- Greater moisture retention capacity

- No need for post-application waste removal because of the bio-degradability

- When degraded, the geo-textiles form a natural soil for micro-organisms

Value drivers for JGT

19



PwCSeptember 2013

Structure of the JGT sector – Porters five forces

20



There are a lot of factors that new entrants have to overcome if they want to be able to compete successfully with the JGT market in India and Bangladesh. These barriers of entry give a lot of advantage to domestic manufacturers of JGT in terms economies of scale, access to distribution channels, and experience.

Threat of new entrant

• LOW1

Substitute products like Synthetic Geotextiles can provide a higher perceived benefit or value and could possibly reduce the demand for JGT. It can even go that far that the switch to alternatives makes like SGT can even lead to JGT getting obsolete in the market if not positioned well.

Threat of substitutes

• HIGH2

Buyers of JGT have a very high bargaining power since most of the end users are Government departments which can constrain the strategic freedom of manufacturers and their ability to influence higher margins.

Bargaining power of buyers

• HIGH3

Suppliers of JGT have a medium bargaining power mainly because of high dependence on Jute growing countries and low contribution in terms of total product portfolio which can again constrain the strategic freedom of manufacturers and their ability to influence higher margins.

Bargaining power of suppliers

• MEDIUM4

JGT has stiff competition from coir geotextile and needs to urgently strengthen its position or else to be the preferred choice in natural geotextile products

Competitive rivalry

• HIGH5

PwCSeptember 2013

• Decline in raw jute production

- Raw jute production has remained stagnant and acreage declined primarily because of the fact that jute growers have been unable to obtain remunerative returns for raw jute.

• Lack of large scale storage

- Lack of or minimal availability of appropriate storage and warehousing facilities affect the consistent availability, price and quality of raw jute.

• Price fluctuation

- The fluctuating price of raw jute and jute products may result into an adverse impact on both, the domestic and export market as it would make jute products non-competitive vis-a-vis synthetics and ultimately resulting in a loss of market share

Analysis of key supply chain issuesInput supply

21



PwCSeptember 2013

• Lack of production capacity and planning

- The production capacity in India and Bangladesh put together is around 2,700 thousand MT. The total domestic demand for JGT based on the market need assessment report would require a dedicated capacity of around 79 thousand MT.

Analysis of key supply chain issuesOperations

22



- The yearly demand for JGT could be in range of 100 – 120 thousand MT for domestic consumption only. This would require dedicated capacity building activity in the area of JGT production.

- Jute mills in India are characterized with high conversion costs and the industry is not in a position to cater to the potential JGT demand unless the production facilities, equipment, raw jute and store materials and resource skills is not upgraded. As of now the whole process of capacity planning is lacking with JGT production as it is mostly adhoc.

JGT Potential Million Sq.m Thousand MTIndia 97 63.05Bangladesh 24 15.6TOTAL 121 78.65

PwCSeptember 2013

• Investment in technology

- Jute industry in general suffers from technological obsolescence, as there have been only lukewarm response in adoption of new technology developed by international machinery manufacturers and GOI sponsored projects. Jute industry predominantly produces traditional products and a few mills have come forward to take up this challenge..

• Lack of process differentiation

- Manufacturers consider JGT as traditional consumer products classified as Jute Diversified Products (JDP’s) and production process, as a result the supply chain line till production is being flown through same supply chain process as used for traditional jute products. This leads to poor quality of JGT and inconsistent end products


23



PwCSeptember 2013

• Lack of product standardization for international markets

- The demand for export orders are customer specific and varies from customer to customer and order to order or even varies when using for the same purpose. This makes a situation where JGT producers cannot produce the finished goods as “off the shelf item”.


24



PwCSeptember 2013

• The demand for JGT, specific to end users, are not always public to JGT manufacturers as proper marketing network is yet to develop.

• The uniqueness of customer order (in terms of product specification) is always there which is again unpredictable till the order is received.

• Due to lack of scope for prediction, JGT producers are not in a position to supply the goods immediately.

• This issue gets aggravated when the order is a bulk one.

• The other reason for long lead times is the fact that JGT is not a priority item for manufacturers and other production lines takes precedence over JGT order fulfillment.

Analysis of key supply chain issuesOrder fulfilment

25



PwCSeptember 2013

• The industry has been largely operating in silos with limited sharing of market intelligence on type and quantity of jute products required for an export market.

• Marketing efforts have been at best piece meal with no concerted industry wide effort. Key challenges faced on the marketing front are as follows.

• The marketing channel is opaque and the identification of end user challenging, apart from the Government Agencies.

• However during the JGT project period 2010 to date NJB has organized around 67 such seminars to promote the usage of JGT both in the domestic and international market

• Since the purpose / usage of Jute Product and the JGT is different, the market for the products is supposed to be different which was never realised and practiced during marketing effort in the past.

• The value proposition (eco friendliness and social importance) of JGT over SGT is not disseminated to mass and there is very less awareness of economic value calculation for eco friendliness.

Analysis of key supply chain issuesMarketing and sales

26



PwCSeptember 2013

Section 3Recommendations


PwCSeptember 2013

SWOT of JGT

28

Section 3 – Recommendations


OPPORTUNITIES

Strength

s

The low labour costs in India and Bangladesh, among the lowest in the world, combined with the relatively high profit margins on JGT makes this sector very interesting

JGT ‘s advantage over Synthetic Geotextiles – increased interest in environmental products , cost, customization, ease with which it can be laid and the lack of maintenance can help in gaining a stronghold in the overall Geotextile market which has shown positive growth signs in the recent past

Jute attracts international support and cooperation as a natural corollary to the United Nations’ Sustainable Development Programme and Millennium Development Goals for socioeconomic development, protection of environment and reduction of poverty.

Domestic opportunities provide JGT producers to first establish a stronghold in the local market and thereby establishing a firm manufacturing base, and then start exporting.

Weaknesses

Inadequate R&D/ quality management facilities compared to Synthetic Geotextiles resulting in lost opportunity

Lack of or minimal availability of appropriate storage and warehousing facilities affect the consistent availability, price and quality of raw jute.

Undeveloped domestic market for JGT because of limited exposure to engineering projects using geo textiles

A lack of market development knowledge by the exporters leads to ineffective promotion of products in both international and domestic markets resulting in loss of potential market opportunities

Poor awareness in the domestic market about JGT leads to customers opting for available substitutes

Marketing has been another weak point of the JGT sector which has not been able to leverage on the advantages of JGT over other substitutes. International marketing efforts have been at best piece meal with no concerted industry wide effort

PwCSeptember 2013

SWOT of JGT

29



THREATS

Strength

s

JGT would need to defend itself from substitutes like Geotextiles from developed countries which have more sufficient support from their government

JGT’s strength in the infrastructure sectors makes it reliant on government sector and state agencies. Since most the infrastructure projects in developing countries are specification driven (state agencies) and low margin businesses, consequently, major contractors hesitate to use significant quantity of geotextile despite its clear benefits.

Since the product is highly customizable as per specifications, the lack of adequate testing facilities at the manufacturing site could prove to be a major impediment for most end-users.

Some applications are clearly suited to jute, but the material characteristics need more elaboration. Other applications are more easily satisfied by the other types of geotextiles

Weaknesses

Jute industry in general suffers from technological obsolescence, as there have been only lukewarm response in adoption of new technology

Contractors often work on tight timelines and budgets and are unwilling to order material much in advance which requires quick response time and high end machinery

Not enough mills that have the capability to manufacture open weave JGT which again leads to lost opportunities.

For soil erosion control geotextiles and hence for JGT, few standards have been formulated or set to date. In the international markets there are strict technical specifications required of geotextile applications, which natural products cannot attain

Absence of industry representation in the compliance standards committee leads to standards developed in favour of competing synthetic geotextiles.

PwCSeptember 2013

• Improve jute yield and productivity

- This can only be achieved through use of high quality seeds.

- Direct governmental involvement would be required as neither the jute industry has the capability to fund the research nor is the jute seed market big and lucrative enough to attract private research and development companies to invest in research in jute seed development.

• Improve the existing marketing systems and infrastructure to improve farm remuneration

- Organising the growers into self help groups and empowering them to address their issues will go a long way in reducing the volatility in raw jute prices and ensuring better returns to them.

- A special program for formation of Self Help groups of growers and their empowerment may be taken up immediately by NJB through cess fund.

Supply chain – improvement opportunitiesInput supply

30



PwCSeptember 2013

• Develop buffer stock for raw jute

- Considering the high fluctuation of prices of raw jute, it is imperative to develop a buffer stock, which can be used during upward price revision.

- It is suggested that buffer stock should be maintained by JCI and BJMC, and respective Government bodies should compensate both JCI and BJMC for the cost of holding utilizing the jute cess fund.

• Encourage contract farming

- The jute mills should adopt on pilot basis 1–2 villages and enter into legal agreement with the grower in terms of price i.e., market prevailing price and minimum quantity off-take.

- The jute mills should assure higher of MSP or market prevailing price and ensure adherence of the partnership agreement. The mills should also assist in obtaining financial assistance to the grower to buy farm implements and crop loan.

Supply chain – improvement opportunitiesInput supply

31



PwCSeptember 2013

• Creation of a Jute Development Fund for R&D efforts

- A jute development fund may be created to fund the R & D efforts of technology development and commercialization.

• Modernization and adoption of new technology

- Machines should be categorized and a higher subsidy can be decided for mills installing technologically advanced machines.

- Mills have been installing machines without improving their process and quality controls. They should improve processes by implementing Total Quality Management

• Skill development and up gradation of workforce

- Industry should take necessary steps to expand the talent base available with more attractive compensation packages, better working environment etc.

- They may also play a bigger role in operating skill development programmes in collaboration with Institute of Jute Technology.

Supply chain – improvement opportunitiesOperations

32



PwCSeptember 2013

• Protection of existing markets and development of new markets

- Regular market surveys, both for domestic and international markets should be conducted to find new markets for existing products.

• Technical specifications

- Conduct collaborative research and field trials on end use applications of JGT with various national and international research institutes and other agencies like IIT, IIM, BRO etc., and draw out application wise specifications broadly to provide guidance to the manufacturers as also to the users.

• Focal points for domestic and international market

- JGT showroom & sales depots in different parts of the country could be made the focal points for promotion of JGT in India and Bangladesh.

- In the first place a knowledge repository needs to be created which would be equipped with all basic materials like technical/promotion literature, case studies etc.

Supply chain – improvement opportunitiesMarketing & Sales

33



PwCSeptember 2013

• Brochure on technical aspects

- The technical characteristic of JGT should be tested keeping in view the various enduse applications

- The efforts to promote the uses of JGT should be designed in such a way as to capitalise this favourable climate promoting environmentally sound project and the policies of importing countries.

• Effective communication

- Eco-labeling of jute products is necessary to position jute products as environment-friendly, economical and acceptable to developed countries.

- The development in the national and international market for geotextiles should be collected and disseminated on a regular basis.


34



PwCSeptember 2013

• Promotion

- A technically supervised documentary on application of JGT for different applications like rural road construction, soil erosion control, landscaping, river bank and hill slope erosion etc. may be produced in countries, where the products are employed widely with great success.

- Should partner with International/ national TV channels like Discovery Channel/National Geographic Channel/BBC etc. to produce a documentary on JGT and its role in various applications. This will help to provide JGT the much needed global exposure

• Events

- Campaigns and events should be organized with the objective of projecting the eco-friendly nature of JGT which is a natural solution to the growing global problems connected with soil erosion.


35



PwCSeptember 2013

• Promotion

- A technically supervised documentary on application of JGT for different applications like rural road construction, soil erosion control, landscaping, river bank and hill slope erosion etc. may be produced in countries, where the products are employed widely with great success.

- Should partner with International/ national TV channels like Discovery Channel/National Geographic Channel/BBC etc. to produce a documentary on JGT and its role in various applications. This will help to provide JGT the much needed global exposure

• Events

- Campaigns and events should be organized with the objective of projecting the eco-friendly nature of JGT which is a natural solution to the growing global problems connected with soil erosion.


36



PwCSeptember 2013

• Govt Departments/Establishments like Irrigation, Roads and Highways, Port Trust authorities, Water Works, Construction and land scape, hotels and resort projects, Railways, Defence and other similar projects/ organisations should focus usage of JGT for permanent eco-friendly solution to soil erosion and other civil engineering problems.

• The Government in India and Bangladesh may make 10% JGT usage mandatory in all government projects where it deems fit.

• NJB should come out with a draft model policy highlighting the direct and indirect benefits of JGT, mainly looking at socio economic benefits, environmental benefits, tax benefits from global exports

• JGT showroom & sales depots in different parts of the country could be made the focal points for promotion of JGT in India and Bangladesh.

• These focal points can also put in persistent effort in educating the potential users the advantages of JGT .

Strategy PlanGovernment Thrust

37



© 2013 PricewaterhouseCoopers Private Limited. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Private Limited (a limited liability company in India), which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

Thank You

Documents

Market Need Analysis and Supply Chain Strategy for JGT NJB - CFC/IJSG/21 Strictly Private and Confidential September 2013 Submitted by PwCPL