PROJECT PROFILE FOR COIR GARDEN ARTICLES PRODUCTION

UNIT

PRODUCT : GARDEN ARTICLES

QUALITY & STANDARD : a) MOULDED RUBBERISED COIR

FIBRELINERS
b) MOULDED RUBBERISED COIR FIBER
POTS FOR TISSUE CULTURE
c) DECORATIVE ARTICLES
PRODUCTION CAPACITY (P.A)

(100% CAPACITY) : 1000 PIECES

VALUE : RS.63 LAKHS

MONTH & YEAR OF PREPARATION : JUNE 2018

PREPARED BY : COIR BOARD, MINISTRY OF MSME,

GOVT OF INDIA

• INTRODUCTION
The raw materials used for the manufacture of garden articles are coir needle
felt coir fibres and compounded natural rubber latex. The fibre liners can be used for
cultivating bitter gourd/snake gourd. The shaped fibre pots are supported by welded
iron wire mesh, which can be kept in air by hanging it from GI wires with the help of
hooks for cultivation of seasonal vegetables.
Advantages:
1. Useful for cultivation of seasonal vegetable plants.
2. No loss of manure applied in pots.
3. No chance of growth of weed/ grass in pots.
4. Retains moisture for long period.
5. Replaces non-biodegradable PVC support.

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 6. 100 % natural and eco-friendly.
7. Suits growth of climbers and hanging plants.
8. Available in various size and shape.

• PROCESS OF MANUFACTURE
The process of manufacture involves cleaning of coir fibre in willowing machine for
the removal of husk particles, nose fibres and coir pith. The fibres are then fed to the
sheeting machine to make it in a sheet form of required thickness. A light coating of
compounded natural rubber latex is applied to the coir fibre sheet by hand or automatic
spraying to get coated fiber liners or sheets.
It is then shaped to pot size of required shape manually with the help of mould and
sprayed with latex compound and cured by hot pressing in a electrically or steam heated
hydraulic press. The semi cured fibre pots may be kept in a vulcanization chamber for a
specified period so as to get a product of desired degree of vulcanization and to acquire non
sticky property. The heating in vulcanization chamber could be effected by circulating hot
air through the semi cured fibre pots.
Moulded rubberized coir fiber baskets

These are made from latex coated sheets of coir fiberliners moulded in hemi spheres
(baskets) of varying diameter of 10”, 12”, 14”, 16”, 18” and 20” keeping the height at 5”. 16”
quarter spheres are also made. They are also available in “U” shape and conical shape.
They are used in roof gardens.
The shaped fiber baskets are supported by welded iron wire mesh, which can be kept in
air by hanging it from GI wires with the help of hooks for the cultivation of seasonal
vegetables and climbers.
Moulded coir fibre pots

The moulded coir fiber pots are usually used as nursery bag for the seedlings and
the wall thickness varies from 2mm to 6mm and the 2mm thick pots are porous, the
seedlings grown in these pots can be directly planted without removing the ‘nursery bag’.

Coir Fiber tissue culture pots

Coir fiber tissue culture pots are available in size of 3” diameter x 2 5/8”
heights and 4” diameter x 31/2”height.

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 BASIS AND PRESUMTIONS
• The Project Profile is based on 8 working hours for1shift in a day and 25 days
in a month and the Break Even efficiency has been calculated on 70%, 80%,
90%, 90% and 90% capacity utilization.

• The rate of interest both for fixed asset and working capital have been taken
as 12.5% p.a.

• TECHNICAL ASPECTS
Installed Production capacity per day : 1000 pieces of different

Varieties in tune with the

market demand

Number of Shift per day : 1

Working days p.a : 300 days

Capacity Utilization

-First year : 70%

-Second year : 80%

-Third year : 90%

-Fourth year : 90%

-Fifth year : 90%

Rate of Average Sales Realization : Rs. 21per piece

Rate of Average cost of raw material : Rs.155000

Interest on term Loan : 12.50%

Interest on working capital : 12.50%

Manpower requirement

Supervisor : 1

Skilled worker : 8

Unskilled worker : 6

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 • FINANCIAL ASPECTS

i) Cost of Project
Amount

• Land : Lease/owned

• Work shed : Rs. 500000/-

• Machinery &Equipment : Rs.1754000/-

• Working Capital Rs. 246000/-

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Total : Rs. 2500000/-

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Sl. Description of machines &equipment Qty Amount

No (Rs)
1 Willowing machine 1 40000.00
2 Sheeting machine 1 500000.00
3 Latex compounding unit 1 400000.00
4 Air compressor with spray gun 1 20000.00
5 Ball mill 1 60000.00
6 Moulds (depending upon the requirement) 3 300000.00
7 Hydraulic press of40”x40” 1 400000.00
8 Weighing balance 1 34000.00
Total 1754000.00

ii) Means of Finance

• Promoters Capital 5% : Rs. 125000/-

• Bank Term loan 95% : Rs.2141000/-

• WC Loan from Bank 95% : Rs. 234000/-

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Total : Rs.2500000/-

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 DETAILS OF THE PROFITABILITY OF THE PROJECT
Rs.in Lakhs

Years 1 2 3 4 5

Installed Production piece 1000 1000 1000 1000 1000

capacity per day
Number of shift/day 1 1 1 1 1

Working days per 300 300 300 300 300

annum
Installed production 300000 300000 300000 300000 300000
capacity per annum
Capacity utilization 70% 80% 90% 90% 100%

Annual production Tons 210000 240000 270000 270000 300000

quantity
Annual Sales Rs. 21 44.10 50.40 56.70 56.70 63.00
Realization
Cost of Production
Cost of raw material Rs.
155,000 13.02 14.88 16.74 16.74 18.60

Power cost 1.02 1.14 1.14 1.27 0.89

Wages & salary 16.72 19.10 21.49 21.49 23.88

Cost of Production 30.62 35.00 39.37 39.37 43.75

Gross Profit 13.48 15.4 17.33 17.33 19.25

Administrative & selling 2% 0.88 1.01 1.13 1.13 1.26
expenses
Interest on Term Loan 2.29 2.36 1.94 0.74 0.32

Interest on Working 0.29 0.29 0.29 0.29 0.29

capital
Depreciation of 1.75 1.75 1.75 1.75 1.75
machinery
Depreciation of building 0.25 0.25 0.25 0.25 0.25

Total 5.46 5.66 5.36 4.16 3.87

Net Profit 8.01 9.74 11.96 13.16 15.38

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• ESTIMATION OF BREAK EVEN POINT

Rs in Lakhs

Particulars 1 2 3 4 5
70% 80% 90% 90% 100%

Break-even point 70% 62% 50% 34% 26%

Break even Production 146466 148574 133928 93094 78644

• DEBT SERVICE COVERAGE RATIO

Rs in Lakhs

Particulars 1 2 3 4 5
70% 80% 90% 90% 100%

DSCR 3.04 2.42 2.95 3.81 4.73

Average DSCR 3.39

DSCR weighted average 3.27

• WORKING CAPITAL REQUIREMENTS

Rs in Lakhs

Particulars 1 2 3 4 5
70% 80% 90% 90% 100%

Variable Cost 30.62 35.00 39.37 39.37 43.75

Fixed Cost 5.46 5.66 5.36 4.16 3.87

Working capital Gap 2.46 2.81 3.18 3.21 3.59