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MANUFACTURING UNIT
Summary:
Project
Proposed Location
Proposed capacity
Project Cost
Rs.500 lakhs
Rs.850 lakhs
Land Requirement
Man Power
Rs.135 lakhs
10
PAT
Rs.110 lakhs
2 acres
20 Nos.
The proposal is to set up a PVC or Latex backed Coir tuffed Door Mats manufacturing unit in
2 acres of land at KSIDCs Industrial Growth Centre, Pallipuram, Cherthala, Alappuzha
District. The products proposed have high export market opportunities. The plant will have a
capacity to manufacture 4 lakhs Square Meter of finished goods.
The product is formed by tufting coir yarn over PVC/Latex Rubber using automatic device.
Mats with varying brush pile (pile heights range from 12 mm to 30 mm) can be manufactured
and the mats can be cut in to any shape, size and in rolls which are used as wall to wall
carpeting material. Shaped mats, Stencilled designs, Flocked designs are also available. The
current trend of the market is towards Latex backed Mats due to its versatility, finish,
durability and competitive costing and environmental concern.
Market
The coir industry, one of the major traditional industries in the state, is second only to
agriculture as a source of employment in Kerala. It provides employment to around 43 lakhs
persons of which 84% are women .Kerala produces about 5641 million coconuts per year
from about 818.80 hectares of land under cultivation. Coir is produced from out of processed
coconut husk. A study reveals that more than 63% of coconut husk produced in the state has
been used for purposes other than coir manufacturing. In Kerala the major coir industrial units
are located at Cherthala and Alappuzha area. State Government has identified coir industry as
the premium industry in traditional sector and declared its intention to extend all assistance to
promote it further.
Coir industries in India have a strong export orientation with the sale of traditionally made
yarn, mats, matting rugs and carpets. Since the mid 1970s export markets have begun to
decline because of severe competition from synthetic fibers. A gradual recovery during last
decades can be attributed partially to increasing ecological awareness on the part of
consumers in the industrially advanced countries.
Indian exports are mainly to USA, European Union, Canada, Japan, New Zealand and United
Arab Emirates. The major chunk of Indian coir export is to USA. Kerala based units account
more than 90% of Indias exports of all coir products. The ability to explore overseas markets
and marketing tie-up is the key factor to success of this industry.
Product
The proposal envisages setting up of one Plant with production capacity of 4 lakhs Sq Metre
for the manufacture of PVC & Latex backed Coir Mat.
Technical Aspects:
1. Installed Capacity
2. Location
3. Technology
Indigenous sources
i.e.
fixing
Coir
fibre
on
PVC
surface/Rubber Surface.
5. Manufacturing Process
Batch
DOP
Stabilizer
Filler
Dye
Chemically inert
Tough
machine
is
equipment which
very
sophisticated
which
mtr/hour) just
a Teflon
belt is moving
like a conveyor.
Above
(0.78
the
arranged.
Stage IV : Quality control & Finishing works:The finished output is
check on random
of 16 kg to 18 kg and
6. Equipment Suppliers
8. Technical Tie-up
70 KVA
Project cost
The total cost of the project is estimated at Rs. 500 lakhs. The details of the cost are as
follows:
Sl. No.
Particulars
Rs. Lakhs
Land
50.00
Land Development
10.00
125.00
240.00
Utilities
8.00
Deposits
2.00
10.00
Contingencies
15.00
10
25.00
Total
15.00
500.00
On commercial operation of the proposed project, the initial working capital requirement will
be to the tune of Rs. 100 lakhs. Packing credit with minimum margin would be available from
Banks for Export business. An amount of Rs. 25 lakhs is provided towards margin money for
working capital.
The loan processing charges, preliminary travelling expenses, pre-operative interest etc. are
estimated at Rs.10 lakhs.
Contingency
An amount of Rs.15 lakhs is provided towards contingency @4% of the fixed assets
excluding land.
Proposed Means of Finance
(Rs. lakhs)
Promoters Contribution
250.00
250.00
Total
500.00
DER
1:1
ROI
29..85%
4.2 Years
IRR
23.7 %
The proposed project is basically to make use of the abundant raw materials available locally
as well as skilled labour. Time tested high quality plant & machinery is also locally available.
The products have excellent export market opportunities. The domestic market is also vibrant.
The project cost is affordable to be in the range of medium scale and offers excellent returns
over the investment. The project is technically feasible and economically viable
***
Disclaimer:
The findings contained in this Project Profile are based on the initial information collated through primary and
secondary research, which is indicative in nature. Reference herein to any specific commercial product, process,
service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement,
recommendation, or favoring by KSIDC or any entities thereof.