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Coir Fibre Production Business Plan

This document provides information on a proposed defibering unit project, including its market potential, manufacturing process, production capacity, project costs, means of finance, financial aspects like working capital requirements and fixed costs, cost of production, projected sales and profits. Key details include an annual production capacity of 300 tons with a selling price of Rs. 3750 per ton, total project cost of Rs. 12.6 lakhs to be financed through a term loan (65%), subsidy (20%) and promoter contribution (15%), and expected net annual profit of Rs. 2.06 lakhs with 18% profit on sales and 16% return on investment.

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Arie Mambang
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203 views3 pages

Coir Fibre Production Business Plan

This document provides information on a proposed defibering unit project, including its market potential, manufacturing process, production capacity, project costs, means of finance, financial aspects like working capital requirements and fixed costs, cost of production, projected sales and profits. Key details include an annual production capacity of 300 tons with a selling price of Rs. 3750 per ton, total project cost of Rs. 12.6 lakhs to be financed through a term loan (65%), subsidy (20%) and promoter contribution (15%), and expected net annual profit of Rs. 2.06 lakhs with 18% profit on sales and 16% return on investment.

Uploaded by

Arie Mambang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

NSIC

Project Profiles

DEFIBERING UNIT
1. INTRODUCTION
Coconut consist of water and copra contained in a hard shell covered with fibrous husk
protecting it from damages. Fibre is extracted from coconut husk mechanically and is
used in making several products with wide applications. One of the products is 2-ply
yarn made of coir fibre.
The fibre is used in the production of different products such as yarn, mats, ropes,
mattings, carpets, brushes, etc. The fibre is also used in mattresses making and
upholstry. The fibre finds application as insulating material also against heat and
sound.
2. MARKET
The production of fibre is in adequate quantities in the State but there is demand for
fibre. In view of abundantly available raw material and the demand, some more units
can come up to make the requirements. Since, there is scope for export also either as
fibre or in the form of products- curled coir, yarn, mattings, geo-textiles, furniture,
manufacture of idols, the requirement of fibre production is enormous.

3. MANUFACTURING PROCESS
Dried coconut husks are fed into the crusher in which the husk undergoes the
preliminary operation of getting crushed. The partly crushed husk are wetted b
spraying water for few days and then fed to the decorticator. In this operation, the fibre
is separated from a residuary material called coir pith. The fibre is dried and screened
for removal of traces of pith present. The screened fibre is pressed into bales of 25 to
40 kg.
4. PRODUCTION CAPACITY PER ANNUM
Capacity
Selling Price

Rs.

300 tons
3750 per ton

5. PROJECT COST/CAPITAL INVESTMENT


S.No

1
2
3

Description

Fixed Capital
Working Capital for
Preliminary & Preoperative Expns
Total Project Cost

Amount Rs.

1175000
60500
25000
1260500

month(s)

6. MEANS OF FINANCE
S.No

1
2
3

Description

Promoter Contribution
Subsidy/Soft Loan
Term Loan
Total

%age

Amount Rs.

15%
20%
65%

189075
252100
819325
1260500

NSIC

Project Profiles

7. FINANCIAL ASPECTS
A. FIXED CAPITAL
i. Land and Buildings
S.No

1
2

Description

Land
Buildings

Unit

acre

Area

Rate

Amount Rs.

0.5
LS

200000

100000
250000
350000

Rate

Amount Rs.

Total
ii. Machinery and Equipment
S.No

Description

Qty.

Crusher, Decorticator, Turbo cleaner,


screener and baling press
Total

LS

825000
825000

B. WORKING CAPITAL
i. Salaries & Wages (per month)
S.No

1
2
3

Description

Nos.

Manager/Entrepreneur
Skilled Workers
Unskilled Workers
Total

1
2
4

Sal/mon.

3000
2500
1500

Amount Rs.

3000
5000
6000
14000

ii. Raw Material (per month)


S.No

Description

Coconut husk

Unit

Qty.

Husks

310000

Rate

0.10

Total

Amount Rs.

31000
31000

iii. Utilities (per month)


S.No

1
2

Description

Power
Water

Unit

LS
LS
Total

Amount Rs.

10000
1000
11000

iv. Other Expenses (per month)


S.No

1
2
3
4
5

Description

Postage, Telephones & Stationery Expenses


Transportation & Conveyance Expenses
Consumeble Stores
Reparis and Maintenance Expenses
Miscellaneous Expenses
Total

Amount Rs.

500
2000
500
1000
500
4500

NSIC

Project Profiles

v. Total Working Capital (per month)


S.No

1
2
3
4

Description

Amount Rs.

Salaries and Wages


Raw Material
Utilities
Other Expenses
Total

14000
31000
11000
4500
60500

8. COST OF PRODUCTION (PER ANNUM)


S.No

1
2

Description

Total Working Capital


Depreciation
- Depreciation on Bldgs
@
- Depreciation on Plant & Mach. @
Interest on term loan
@
Total

Amount Rs.

726000
5%
10%
12%

12500
82500
98319
919319

9. TURNOVER (PER YEAR)


S.No

Description

Sales revenue

Unit

Qty.

tons

300

Rate Rs.

3750

Total

Amount Rs.

1125000
1125000

10. FIXED COST (PER YEAR)


S.No

1
2
3
4

Description

Depreciation
Interest
Salaries & Wages
@
Other Expenses incl. Utilities @
Total

Amount Rs.

95000
98319
67200
74400
334919

40%
40%

11. PROFIT ANALYSIS & RATIOS


1
2
3
4

Net Profit
Percentage of Profit on Sales
Percentage of Return on Investment
Break Even Point

Rs.

205681
18%
16%
62%

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