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India By State - Bihar - Business Opportunities

Business Opportunities


Key Industries

The key industries indentified in the state of Bihar are; sugar, food processing, leather, minerals, tourism, and textiles/handlooms.

Sugar occupies a large role in the economy, sugarcane accounts for over 4% of total cultivable land in Bihar. Over 0.55 million farmers and unskilled and skilled personnel (including trained technologists) are estimated to be engaged in the sugar industry, either through cultivation or other means.

The announcement of a state sponsored incentive package has resulted in the state receiving investments worth US$1.1 billion in the sector. Investment of this amount represents an additional crushing capacity of 100 000 tonnes/day and a distillery capacity of 235 KL/day, with direct and indirect employment potential of 0.21 million.

Expansion is underway on facilities to help tap into ethanol manufacturing opportunities.

The availability of Kendu leaves and low-cost labour makes the tobacco industry another important cash agro-based product.

Bihar also has a growing Non-agro sector which is based mainly around the leather and textiles industry.

The strong Cattle population means there is a lot of potential for leather based industries. With over 50000 artisans and 90 leather units and tanneries, both private and under the Bihar leather development corporation, Bihar is an attractive proposition for any company with leather based products.

The presence of an immense work force of over 10 million weavers and 20 000 handloom units make Bihar an excellent location for the textile industry.

Petroleum remains a huge contributor to the state's GSDP and the state has one of the largest public sector refineries.

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Key Players

K.K. Birla Group

K.K. Birla Group's sugar company Upper Ganges sugar (UGSIL) has two units in Bihar- Bharat sugar mills, Sidhwalia. District Golpalganj, with a crushing capacity of 2,500 tonnes/day and Hasanpur sugar Mills, Hasanpur, District Samatipur with a crushing capacity of 1750 tonnes/day.

UGSIL is investing US$ 88.4 million for expansion of both units to each crush 5000 tonnes/day.

Indian Gasohol

The state has cleared investment of US$299 million for the set up of 10 distilleries for the production of ethanol from sugarcane, with a combined capacity of 5.4 million tonnes annually.

The crushing capacity of 25000 tonnes crushed daily, also co-generates 2000 MW of energy from bagasse, 70% of which will be used by state of rural electrification.

Also proposing to invest US$ 600 million in four Maize based processing units.


India's largest cigarette manufacturer also a leading diversified business conglomerate has its first plant for cigarettes located in Munger in Bihar.

Bata Industries

Promoted by the Toronto-based Bata Shoes, Bata is India's largest manufacturer and marketer of footwear products. The company has a tannery for its leather supply in Mokamehghat (Bihar) along-with a leather footwear factory at Bataganj (Patna).

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Bharat Wagon and Engineering Company

Part of Bharat Bhari Udyog Nigam - a Govt. of India undertaking, it has rich experience in heavy steel fabrication of over half a century. It has two units at Mokama and Muzaffarpur, which are ISO 9001 certified for manufacture of Wagons; third unit at Muzaffarpur manufactures Gas Cylinders.

IDL Industries Ltd

Part of the Hinduja Group, IDL Industries Limited is the second largest detonator manufacturer in the world. IDL Industries, in Bihar, manufactures detonators and slurry explosives for commercial use. It has a production facility at Rajarappa and support bulk unit at Rajmahal.

IDL Industries, in Bihar, manufactures detonators and slurry explosives for commercial use. It has a production facility at Rajarappa and support bulk unit at Rajmahal.

Sonalika Group

International Tractors Limited, part of the US$ 220 million Sonalika Group, is among the top five tractor and farm equipment manufacturers in India.

Company is investing US$ 28.7 million to set up a tractor manufacturing plant at Fatuha Industrial area in rural Patna, with an eventual annual capacity of 40,000 units.

Indian Oil Corporation

Indian Oil Corporation IOCL is India's leading petroleum company and a Fortune 500 giant.

The 943-km long Haldia-Barauni Crude Oil Pipeline (HBCPL) receives crude oil at Haldia oil jetty and transports it to Indian Oil's Barauni Refinery.

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Export profile

There are several Industry Centres. Patna is a major Agricultural centre of trade exporting Grain, Sugarcane, Sesame and Medium-Grained Rice. It has also emerged as a big and rapidly expanding consumer market and it has the highest number of industrial units in Bihar. Recent improvements to the law and order system have made Patna an attractive proposition for external companies to come and take advantage of.

Tirhut has the second highest number of industrial units in the state. Muzaffarpur is the administrative headquarters of Tirut and is the centre of several industries and an important trade centre for Clothes and famous for exporting Mango and Litchi. It is largely an agricultural based economy with mass production of crops such as rice, wheat, pulses, jute, maize and oil seeds, cauliflower, cabbage, tomato, radish, carrot, and beet-root.

Barauni has major industrial units including those of the Indian Oil Refinery, apart from a proposed thermal power station.

Bhagalpur is Famous its worldwide silk production and is renowned as a place where the trades in Agricultural produce and Cloth take place. Other major industries include Rice and Sugar, and Milling and woollen weaving.

Gaya is the major weaving centre having around 8000 power looms operational.

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More Information on Bihar

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