Manufacture The Coir Products Needs Project Report

EXECUTIVE
SUMMARY
Kind of Business : Manufacture the Coir Products
Coir Pith Grow Bags
Coir Pith 5Kg Blocks

Introduction:
The full‐fledged production facility to be situated in Vadipatti, near
Madurai, South India, is one of the heart of the long and flourishing coconut
belt in Tamilnadu, the Indian Sub‐Continent. It’s strategic location enables it to
avail the wealth of resource in the form of superior coconut husk, which forms
part of our raw material.
Our Finished Goods, COIR PITH GROW BAG & 5 KG BLOCKS.

Profile of Management / Promoter:
Rm.Dheivanai.,D.Pharm.,

Location:

The Administrative Office Factory site

No.15,Mahal Vadampokki Street, No.213/2C, Pallapatti Main
Madurai ‐ 625 001. Road,Mattapparai Village,
Nilakottai Tk. Dindigul Dt.624 213.

Resource Needs:
The Prime reason to set up the manufacturing unit in this particular
location is, the surplus availability of Raw Material. In this location we can get
more than enough raw material at cheaper rate and also having almost nil
transport cost which will enable us to produce the Finished goods at lower
rate.
Page 1
Eventhough there is lot of raw material suppliers in our area (around 1
km distance) We make contract with M/s.Sri Hari Coirs & Anusiya Fibres to
supply the adequate raw materials.
Further, the another main advantage is, in our location we are having
Industrial Feeder of Electricity Supply, Enough water source & the labour at
cheaper rate.
Volume of Business:
Rs.99,00,000/‐ (Rupees Ninety Nine Lakhs only) per year
Profit note in:
(i) Market
The Business Coordinator & Consultant of Grow Rich Coco
Manufacturing Company, Mr.P.Balasubramanian., M.Com, A.C.S.(Inter) a
well experienced in the coir pith manufacturing & export. He is having
knowledge and contact with Overseas & Local Market of coir products,
also will assist & guide us to setup & to running the coir pith grow bag &
5 kg block manufacturing company in a successful manner.

(ii) Customer
Our Finished Goods of Coir pith Grow Bags & 5 kg Blocks are having
international market. We are also having a good contact with the
International buyers of cocopeat such as Dutch Plantin of Netherlands,
Espa fibra of Spain, Bombunova of Spain, Steadygrow of Australia.

And also having contact with the local exporters such as Eco coir of
Tuticorin, vandana Coir of Udumalai. To ensure the regular sale of our
Finished goods‐ Grow bags & 5 kg blocks, we made a contract with M/s.
Eco Coir,of Tuticorin, the leading Exporter of Coir pith.

(iii) Financial Highlight
Loan amount : Rs.68.16 Lakhs
Own contribution : Rs. 5.69 Lakhs
Page 2

BUSINESS PLAN FORMAT FOR MSMEs
(Manufacturing Industries)

1.0
Name of the Firm GROW RICH COCO MFG COMPANY
Name of COIR PITH GROW BAGS
Business/project
Location MATTAPARAI, NILAKOTTAI, DINDIGUL
Type of organization PROPRTRIX
(Proprietary/Partnership)
Address 213/2C, GROW RICH COCO MFG. COMPANY, MATTAPPARAI,
(With Phone, e‐mail) PALLAPATTI MAIN ROAD, NILAKKOTTAI TALUK, DINDIGUL DIST.
E‐mail: growrichcoco@gmail.com
Name of the Chief RM. DHEIVANAI
Promoter(s)
Date of Birth 10.05.1975
Name of Partners ‐Nil‐

1.1 Educational Qualification:

Course (From Major
School/University/Institute Year of Passing
SSLC/Diploma) Subject
Diploma in Periyar College of Pharmacy 1992
Pharmacy Pharmacy, Trichy

1.2 Special Training:

Training In Institute Duration Achievement/Remark
Medical Shops & Dena Medical 5 Years
Govt. Hospital

Page 3
1.3. Works experience (Past & Present):
Organization Position Nature of Work Duration
Pelicon Bio Tech Pvt. Ltd., Supervisor Production 02/2011 to 11/2012

1.4
Promoter’s Annual Income (Last Year) Rs.25,000/‐
Asset Owned by the promoter (s) Movable ‐Nil‐
Immovable ‐Nil‐

1.5 COMPANY’S MAIN OBJECTIVE (Why does the company exist?):
To Manufacture the Coin Pith Grow Bags, Coir Pith 5 Kg Blocks.

1.6 FINANCIAL GOALS:
a. To have a sales revenue amounting to Rs. 99,00,000 By
b. To obtain a profit margin of 7.7%
c. To obtain a profit per business partner of ‐Nil‐

1.7 DESCRIPTION OF THE PRODUCT or SERVICE:
Our product is Coir Pith Grow Bag and Coir Pith 5 Kg Block

This is a Compressed form of Coir Pith / Coir Dust

1.8 IDENTIFICATION OF THE CUSTOMERS:
Our main customers are Green Houses, Nurseries and Vegetable Growers.
Needs satisfied by the product of service:
Soilers planting media
Page 4
1.9 IDENTIFICATION OF THE COMPETITION (Major competitors):
Since there is a huge market in International level, there is no worry about the
competition.
Strengths/weakness of the competition:
Strength Weakness
No Competition No Competition

1.10. ADVANTAGES AND DISADVANTAGES OF THE PRODUCT AND YOUR COMPANY
Price Rs.11,000/‐ Per Metric Ton
Quality Low E.C.
Terms of Delivery Packed and Delivered to their factory
Payment Methods 20 days after delivery
Customer Service Door delivery
Others: Friendly approach

1.11 MESSAGE TO BE COMMUNICATED TO THE CUSTOMERS:
Use Eco Friendly for all make value from waste

1.12 MARKETING AND MEANS OF COMMERCIALIZATION:
Present of demand & supply Compare to demand supply is too small
Competition ‐Nil‐
Target Clients Green House owners & Nurseries
Marketing Strategy (USP) ‐Nil‐

Page 5
1.13 Manufacturing Process:
Technical know‐how
Availability
Step‐by‐step description Purchase of Raw Coir Pith
Of the manufacturing Washing
Process (raw material‐ Drying
Finished goods) Sieving
Compacting & Packing

1.14 Production Programme:
No. of working days/annum ‐ 300
No. of working shifts (8hrs)/day ‐ One
Installed capacity (annual) ‐ 4200 MT / Year
Utilized capacity (%)

Year‐I ‐ 900 MT
Year‐II ‐ 990 MT
Year‐III ‐ 1089 MT
S. No Item(s) Quantity Capacity
Produced/Yr Utilization (%)
1. Coir Pith Grow Bag 600 34%
2. Coir Pith 5 Kg Block 300 12.5%

2.0 Details of the proposed project:
2.1 Land and Building:
S. No Particulars Area required Total value Remarks
1 Land 50 Cents Own
2 Building 3000 Sq.Ft. Rs. 21 Lacks By Loan
TOTAL

2.2 Machineries Equipments:
S. No. Description Nos. required Rate (Rs) Total value (Rs)
1. Grow Bag Machine 1 27.7 Lakhs 27.7 Lakhs
2. Screener, Conveyor,
1 Set 8.8 Lakhs 8.8 Lakhs
Vibrator
3. 5Kg Machine 1 17.5 Lakhs 17.5 Lakhs
4. Screener, Conveyor,
1 Set 8.8 Lakhs 8.8 Lakhs
Vibrator
Total 62.8 Lakhs 62.8 Lakhs

Page 6
2.3 Misc. Fixed Assets:

S. No. Particulars Nos. required Rate (Rs) Total value (Rs)

2.4 Preliminary and Pre – operative Expenses:
S. No Particulars Amount (Rs) Remarks
1 Interest during Implementation ‐Nil‐ ‐‐
2 Establishment expenses ‐Nil‐ ‐‐
3 Start – up expenses 1 Lakhs ‐‐
4 Misc. expenses ‐Nil‐ ‐‐
TOTAL 1 Lakhs ‐‐

2.5 Working capital: 10 Lakhs

S. No Item Duration Total value (Rs)

1 Yr 2 Yr 3 Yr 4th Yr 5th Yr
st nd rd
1. Raw‐material stock 58.5 51.97 57.17 62.88 69.17

2. Semi‐finished goods ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
3. Finished goods Stock 2.20 2.2 2.2 2.2 2.2
4. Sales on credit 2.20 2.2 2.2 2.2 2.2
5. Production Expenses 19.53 32.67 35.89 39.42 43.31
6 Total 82.43 89.04 97.46 106.7 116.88

2.6. Total cost of the Project: Rs.94.80 Lakhs

S. No. Particulars Total value (Rs)
1 Fixed Capital (Sum of 2.1+2.2+2.3) 83.80
2 Working Capital (Sum of 2.5) 10.00
3 Preliminary & Preoperative Expenses 1.00
(sum of 2.4)
Total 94.80

Page 7
2.7 Means of Finance:

S. No. Particulars Amount (Rs) Remarks
1 Own Investment/Equity 5.69
2 Term Loan 58.66 B.O.I
3 Working capital Loan 9.50 B.O.I
4 Any other source (subsidy etc) 20.95 SUBSIDY
Total 94.80

3.1 Sales Revenue: (Please refer item No. 5.1 (Pricing)
S. No Item (s) Quantity Rate/Unit (Rs) Sales
Sold/Yr Realization
(Rs)
1. Coin Pith Grow Bag 900 MT 11,000 MT 99,00,000/‐

Total 900 MT 11,000 MT 99,00,000/‐

4.1 Raw material (annual) Requirement:
S. No. Item (s) Quantity Rate (Rs) Total Value (Rs)
1. Coir Pith 1300 MT 4,500/‐ 58,50,000/‐

Total 1300 MT 4,500/‐ 58,50,000/‐

4.2 Utilities:
S. No. Particulars Annual Remarks
Expenditure
1 Power/electricity 1,95,000
2 Water 12,000
3 Coal/Oil/Stream ‐‐
4 Transport 60,000
5 Any other item ‐‐
Total 2,67,000

Page 8
4.4 Man Power (Salaries/Wages):

S. No. Particulars No. Wages/Salary Annual
P.m. (Rs) Expenses (Rs)
1 Skilled 2 16,000 1,92,000
2 Semi‐skilled ‐‐
3 Unskilled 15 75,000 9,00,000
4 Office staff 2 12,000 1,44,000
5 Any other ‐‐
Total 19 12,36,000

4.5 Repairs and Maintenance:
S. No. Particulars Amount (Rs)
1. Machinery Maintenance 75,000/‐

4.6. Selling and Distribution Expenses:
S. No Particulars Amount (Rs) Remarks
1 Publicity expenses ‐‐ ‐‐
2 Travelling 12,000 ‐‐
3 Freight 2,40,000 ‐‐
4 Commission ‐‐ ‐‐
5 Misc ‐‐ ‐‐
Total 2,52,000 ‐‐

4.7. Administrative Expenses:

S. No. Particulars Amount (Rs) Remarks
1 Stationery & Printing 12,000
2 Post/telephone 48,000
3 Entertainment Expenses ‐‐
4 Miscellaneous 62,000
Total 1,22,000

Page 9
4.8 Interest:

Year Loan amount Interest (Rs) Installment (Rs) Balance (Rs)
Outstanding (Rs)
I 68.23 12.48 11.37
II 56.86 10.78 11.37
III 45.49 9.07 11.37
IV 34.11 7.37 11.37
V 22.74 5.66 11.37
Total 56.85

4.9. Depreciation:

S. No. Type of Asset Cost of Asset Expected Life Depreciation
1. Machinery 62.8 Lakhs 20 Years 15%

5.1. Pricing:

Product1 Product 2 Product 3
Amount Amount Amount
Total product cost per 32.50
Unit (fixed Cost/unit +
variable /unit) + tax
Desired Profit
Sale Price (Including 42.50
tax)

Page 10
Profitability Projections:

S. No Particulars Amount (Rs) in Lakhs
Year‐ Year‐ Year‐ Year‐ Year‐
1 2 3 4 5
A Sales realization 110.25 121.27 132.6 145.9 161.4
B Cost of producing
1 Raw materials 58.5 63.22 69.54 76.49 84.14
2 Utilities 2.67 2.94 3.23 3.55 3.91
3 Salaries/wages 12.36 13.59 14.9 16.3 17.93
4 Repairs & maintenance 0.75 3.0 3.3 3.6 4.0
5 Selling & distribution expenses 2.52 2.77 3.0 3.3 3.7
6 Administrative expenses 1.22 1.34 1.47 1.61 1.76
7 Interest 9.45 7.7 6.0 4.33 2.62
8 Rent ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
9 Misc. expenses ‐‐ ‐‐ ‐‐ ‐‐ ‐‐
TOTAL – B (1 TO 9) 87.47 94.56 101.44 109.18 118.06
C Gross Profit/Loss (A‐B) 22.78 26.71 31.16 36.72 43.34
D Less: Depreciation 8.47 7.31 6.32 5.48 4.75
E Income – tax 1.63 3.55 5.1 6.8 8.6
F Net profit/Loss (C‐ (D+E) 12.68 15.85 19.74 24.44 29.99
G Repayment 9.71 9.71 9.71 9.71 9.71
H Retained surplus 2.97 6.14 10.3 14.73 20.28

Attach P/L Projections, Balance Sheet Projections, Cash Flow Projections generated
through software
Page 11
Application Form - Business Details
Name of Business Enterprises : GROW RICH COCO MANUFACTURING COMPANY
Office Address
Door No 15
Street mahal vadampokki street
Area vilakkuthoon
City madurai
District Madurai
State TamilNadu
Pincode 625001
Factory Address
Factory Door No 213/2c
Factory Street pallapatti main road
Factory Area mattaparai
Factory City nilakottai
Factory District Dindigul
Factory State TamilNadu
Factory Pincode 624213
Type of Industry Manufacturing
EM no 330131215849E
Product Name coir pith grow bag
Consitution Proprietary
No of key persons involved 1
Page 12
Key Person 1
Title Thirmathi
Name DHEIVANAI RM
Father/Husband Name RAMANATHAN N
Age 39
Address 15
mahal vadampokki street Personal Finance

vilakkuthoon Permanent Account Number BYXPD5699G
Telephone number 9994918108 Do you have Bank account Yes
Mobile number 9500969868 Bank name Bank of India
Educational background diploma in pharmacy Branch madurai main
Whether ration card available Yes Bank address east avani moola street
Whether voter identity card available Account number 825010110011694
Social status FC Account type Savings Bank
Employment of spouse Self employed IFSC code BKID0008250
Qualification of spouse MSc Credit card No
Networth Statement
Assets (Rs.Lakhs)
Immovable Properties( Including Land and Building ) 0.00
Investment in Business Capital 0.00
Deposits with Banks/institutions 0.00
Gsecs/Bonds/NSC/NSS 0.00
Shares/Debentures ( Market Value ) 0.00
Life Insurance Policies ( Surrender Value ) 0.00
Value of Vehicles ( Market Value ) 0.00
Other Assets ( Incl. Jewellery ) 0.00
Total Assets 0.00
Liabilities 0.00
Loans Availed from Banks (Total Outstanding) 0.00
Other Liabilities 0.00
Total Liabilities 0.00
Networth 0.00
Property Location
Page 13
Project Cost (Rs.lakhs)
Land 0.00
Building 21.00
Plant and Machinery
Imported 0.00
Indigenous 62.80
Vehicles 0.00
Furniture and Fittings 0.00
Computers and office automation 0.00
Testing equipment 0.93
Other fixed assets 0.00
Erection/installation charges 1.00
Pre-operative expenses 4.00
Provision for contingencies 1.00
Working capital margin 4.07
Total Cost 94.80
Means of finance
Owners contribution 5.00%
Owners contribution 4.74
Loan from bank/other institutions 90.06
Total 94.80
Fullfillment of statutory requirements

Requirements Status
1.Approval from Local Authority / body Obtained
2.Approval for Building Plan Obtained
3.Approval from Inspector of Factories To be Obtained
4.Approval from Electricity Board To be Obtained
5.Have you obtained Import and Export Code? To be Obtained
6.Sales Tax Registration To be Obtained
7.Service Tax Registration Not Applicable
8.Pollution Control Board Clearence Not Applicable
9.Registeration for Partnership/Company/Co-operative Society Not Applicable
Personal strengths in the area of business

I have 2 years of relevant experience. I have handled production in my previous assignment. My family members possess experience in this business and they
would be involved. The raw material required for the business are 1050 Metric_Tonnes of RAW COIR PITH and the value is 47.25 lakhs. Raw materials are
available in the local market. No raw materials are available for credit. The suppliers of the raw materials are 1. SREE HARI COIRS2.ANUSIYA FIBRES. The
processes involved in manufacturing the final product are PURCHASE OF RAW MATERIALSWASHINGDRYINGSIEVINGCOMPACTINGPACKINGLOADING.
For this business semiskilled manpower are required. I am confident of having necessary manpower for the business. power requirement is 58 horse power per
day. I do not have any backup. I require 1000 liters of water. I have adequate facility to draw water. I have approval for the land and building . I conducted survey
and based on the findings only and I am trying to get into this business. I sell the product through directly to customers. I do not have showrooms. I will take 5
months to deliver the first order. I will get repeat orders from the following companies: ECO COIR. We expect an order size to the extent of Rs. 8.25 lakhs from
them. I am confident of generating rupees 108 lakhs sales in next three years. Page 14
The unfinished product does not have any market. The business potential for this
product is growing at higher rate in exports. The current market volume in Tamilnadu is 0 lakhs and in India is 0 lakhs.
Projected Profit & Loss Statement (Rs.Lakhs)

Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020
Sales 99.00 118.80 138.60 158.40 178.20
Other Income 0.00 0.00 0.00 0.00 0.00
Closing Stock 29.48 35.37 41.27 47.16 53.06
Total Income 128.48 154.17 179.87 205.56 231.26
Raw Material Consumed 42.52 55.76 65.20 74.66 84.10
Wages 0.36 0.43 0.50 0.58 0.65
Power & Fuel 0.98 1.17 1.36 1.56 1.76
Rent 0.00 0.00 0.00 0.00 0.00
Other Manufacturing
9.90 11.88 13.86 15.84 17.82
Costs
Administration Expenses 3.85 4.63 5.40 6.17 6.94
Selling & Distribution

1.98 2.38 2.77 3.17 3.56
Expenses
Excise Duty 0.00 0.00 0.00 0.00 0.00
Depreciation 7.33 6.65 6.04 5.48 4.98
Finance Charges 5.04 8.83 6.31 3.78 1.26
Total Expenditure 71.96 91.73 101.44 111.24 121.07
Profit & Loss 56.52 62.44 78.43 94.32 110.19
Projected Balance Sheet (Rs.Lakhs)

Capital 4.74 4.74 4.74 4.74 4.74
Reserves & Surplus 56.52 118.96 197.39 291.71 401.90
Loan from Bank 72.05 54.04 36.03 18.02 0.01
Sundry Creditors 3.94 4.73 5.51 6.30 7.09
Total Liabilities 137.25 182.47 243.67 320.77 413.74
Fixed Assets 77.40 70.75 64.71 59.23 54.25
Sundry Debtors 16.50 19.80 23.10 26.40 29.70
Stock 29.48 35.37 41.27 47.16 53.06
Loans & Advances 0.00 0.00 0.00 0.00 0.00
Cash & Bank Balance 13.87 56.55 114.59 187.98 276.73
Total Assets 137.25 182.47 243.67 320.77 413.74
Page 15
Projected Cash Flow Statement

Net Profit as per Tax 56.52 62.44 78.43 94.32 110.19
Add: Depreciation 7.33 6.65 6.04 5.48 4.98
Add: Capital Contribution 4.74 0.00 0.00 0.00 0.00
Add: Loan from Bank 90.06 0.00 0.00 0.00 0.00
Add: Increase in Sundry

3.94 0.79 0.78 0.79 0.79
Creditors
Add: Decrease in Sundry

0.00 0.00 0.00 0.00 0.00
Debtors
Add: Decrease in Stock 0.00 0.00 0.00 0.00 0.00
Total Inflow 162.59 69.88 85.25 100.59 115.96
Less: Purchase of Fixed

84.73 0.00 0.00 0.00 0.00
Assets
Less: Repayment on
18.01 18.01 18.01 18.01 18.01
Loan to Bank
Less: Increase in Sundry

16.50 3.30 3.30 3.30 3.30
Debtors
Less: Decrease in Sundry

0.00 0.00 0.00 0.00 0.00
Creditors
Less: Increase in Stock 29.48 5.89 5.90 5.89 5.90
Less: Loans & Advances 0.00 0.00 0.00 0.00 0.00
Total Outflow 148.72 27.20 27.21 27.20 27.21
Opening Balance 0.00 13.87 56.55 114.59 187.98
Surplus/Deficit 13.87 42.68 58.04 73.39 88.75
Closing Balance 13.87 56.55 114.59 187.98 276.73
Ratios
Usual Norms Mar-2016 Mar-2017 Mar-2018 Mar-2019 Mar-2020
Current Ratio >1.33 15.19 23.62 32.48 41.51 50.70
Debt-Equity Ratio <2.00 1.18 0.44 0.18 0.06 0.00
Debt Service
>1.5 2.67 2.66 3.48 4.50 5.78
Coverage Ratio
TOL / TNW <3.00 1.24 0.48 0.21 0.08 0.02
Interest Coverage
>2.00 12.21 8.07 13.43 25.95 88.45
Ratio
Net Profit Margin(%) >5.00 57.09 52.56 56.59 59.55 61.84
Page 16
Interest & Loan Repayment Schedule (Rs.Lakhs)

Opening Balance 0.00 72.05 54.04 36.03 18.02
Receipt 90.06 0.00 0.00 0.00 0.00
Total 90.06 72.05 54.04 36.03 18.02
Repay 18.01 18.01 18.01 18.01 18.01
Closing Balance 72.05 54.04 36.03 18.02 0.01
Average 36.03 63.05 45.04 27.03 9.02
Interest 5.04 8.83 6.31 3.78 1.26
Working Capital (Rs.Lakhs)

Stock 29.48 35.37 41.27 47.16 53.06
Sundry Debtors 16.50 19.80 23.10 26.40 29.70
Loans & Advances 0.00 0.00 0.00 0.00 0.00
Cash & Bank Balance 13.87 56.55 114.59 187.98 276.73
Total Current Assets 59.85 111.72 178.96 261.54 359.49
Sundry Creditors 3.94 4.73 5.51 6.30 7.09
Salaries & Wages 0.03 0.04 0.04 0.05 0.05
Power & Fuel 0.08 0.10 0.11 0.13 0.15
Working capital 55.80 106.85 173.30 255.06 352.20
Page 17
MARKET SURVEY
1. DESCRIPTION OF THE PRODUCT WHICH WE INTEND TO MANUFACTURE.
COIR PITH
Cocopeat is a natural fibre made out of coconut husks. The extraction of the coconut
fibre from husks gives us this by‐product called cocopeat. Cocopeat is a 100% natural growing
medium. This cocopeat dried in the natural sun, are processed to produce different items
namely cocopeat block, cocopeat briquettes, cocopeat tablets etc. This makes an excellent
growing medium for hydrophonics or container plant growing. Clean coir has natural rooting
hormones and anti‐fungal properties.
The various usages of coir pith is given below :‐ How does Coir pith do this?

The properties of Coco Peat make it resistant to bacterial and fungal growth.

Coco Peat holds water rather than shedding it like traditional peat does! It holds 8‐9 times it's
weight in water.

Coco Peat has the ability to store and release nutrient to plants for extended periods of time.
It also has great oxygenation properties which is important for healthy root development.

It has a pH of 5.2‐6.8 which is neutral to slightly acidic. This makes it great for alkaline garden
soils.

Easy to use! Just put your compressed Coco Peat brick in a container, add 4 quarts of warm
water and let it sit until the water is absorbed, fluff it up and you are ready to use Coco Peat!

Coco Peat can even be reused for up to 4 years!

It makes a great bedding material for worm bins! It's actually good for them and increases
worm growth by 25%.
Page 18
Coco Peat is very slow to disintegrate; it only begins to break down when it is 10 years old,
long term benefits.

It is very light and easy to handle. Coco Peat has the ability to store and release nutrient to
plants for extended perameters. It can be combined with any of the normal ingredients and use
as a mixer or a stand‐alone product.

An affordable price for a quality product with an environmentally sustainable future.

THE VARIOUS FORMS OF COIRPITH:‐
1. Coir pith grow bag
Coir pith grow bags are manufactured by blending Coir pith with adequate quantity of short
Coir fibre. This is then compressed and packed loosely in a UV stabilized Black and White
Polythene bag. At the user end suitable holes are to be cut for planting as well for drainage.
Coir pith grow bags enable you to enjoy delicious crop such as tomatoes, strawberries and
cucumbers. The bags are ready to use as planting containers. Simply transplant plants into the
Coir pith grow bags during the planting season.

2. Coir pith block (5KG )
Coir pith block is specially designed for commercial Nurseries and greenhouses. This soil
conditioner is suitable for all types of garden plants, lawns, flowers, orchids, bonsais and
vegetables in pots or on the ground.

3. The market segment being focused :‐
Quality Conscious Segment
Our Product, coir pith is mainly focused on the Quality Conscious Segment. Since It is being
used to agriculture, horticulture and nurseries, we have to concentrate, focus and ensure on
Quality to sustain the market, then only we can overcome our competitors.
Further Our Product, is ensure the ECO‐Friendly.
Page 19
3.Demand for the product:
Our product, coir pith is having huge international market in various countries like,
Korea, Australia, Netherland,USA and European countries etc.,The Export statistics for the last
five years is reveal the truth.(attached).

4. The demand and supply:‐
Even though there is a huge demand for our product in international level, the local
market is not as much as Export. Further the product is not up to the level to meet the
international demand.
So, To match the demand and supply our COIR BORAD , Introducing and implementing ,
the strategy called “VISION 2025” (attached)

5. The manufacturer in our district producing the same product:
M/s. Sai Coco Products, Pallapatti, Dindigul.

6. Pricing method adopted by competitors:‐
For our Product, coir pith, the pricing method by not only by competitors but also all
manufacturer of our product is always depends upon the quality, and it is being fixed by the
international market .

7. The Distribution method adopted by the competitors:
Since the product is having huge international market, our competitors are trying to
export the product whether directly or thru the existing reputed exporters.

10. Market opportunities in other districts and states for our product:
To increase the demand and usage of our product in India, our coir board is taking
necessary steps by implementing the “VISION 2025”.

Page 20
11. Export opportunities for the product:
As per the last five years Export Performance Statistics , we are aware that there is a
huge international market for our product.

12. Issue/challenge to be address in the business in terms of :‐
Manufacturing: It is difficult to manufacture in Rainy season. Because the during rainy
days one of our manufacturing process , drying process will affect.
Page 21
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A total quantity of 5,37,040.38 MT of coir and coir products valued at Rs.1476.04 crores was
exported from the country during the period April 2013 to March 2014 as against an export of
4,29,500.92 MT valued at Rs. 1116.02 crores achieved during the corresponding period of previous
year. There is an overall increase of 25% in quantity and 32% in value over the export achieved
during the corresponding period of the previous year. The target fixed for coir & coir products for
the year 2013-14 by the Ministry of MS&ME, Govt. of India, New Delhi, is Rs.1000 crores. The
achievement upto March 2014 during the year is 147% of the target fixed by the Govt. of India
which is an all time high in the history of coir industry.
E
Exxppoorrtt T
Trreenndd iinn G
Geenneerraall
During the period April 2013 to March 2014 export of Coir Fibre, Coir Yarn, Powerloom
Mat, Handloom Matting, Geo-Textiles, Coir Rope, Curled Coir, Rubberized Coir, Coir Pith and
Coir other sorts have shown an increase both in terms of quantity and value when compared to the
previous year. The item Coir Rugs & Carpet has shown negative growth both in terms of quantity
and value when compared to the figures of the previous year. Handloom mat have shown decrease in
terms of quantity and an increase in terms of value. During the year 2004-05 the export was valued at
Rs.473.40 crores and now the export has increased by more than three times and reached 1476.03
crores during the year 2013-14.
Page 22
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VISION 2025
NATIONAL COIR POLICY

OVERVIEW
Coconut palm is also known as „Kalpavriksha‟ as each and every
part of it can be of use for the mankind. The trunk can be used for
furniture making, leaves for thatching roof of village houses, nut in the
tender form as a nourishing drink, shell for making handicrafts, kernel
for extraction of oil and for cooking. Finally the husks can be used as
a raw material for extraction of coir fibre and pith, which sustains large
number of people in the coastal belts of the country.
1.1 Coconut – the source of raw material for coir sector
Even in the traditional States where coconuts are grown, the
farmers have been neglecting the cultivation due to the uncertainty in
price, variety of pests and diseases affecting the coconut palms etc.
Value addition in coconut products has been least where coir sector is
an exception.
1.1.1 Utilization of Coconuts in India
Page 25
Coconut is relatively a sturdy crop and not easily perishable. Still
the gap between consumer price of coconut in urban centers and farm-
gate price at which farmers are forced to sell their coconut is very big.
Inefficiencies in aggregation, transportation, storage and distribution,
coupled with multiple levels of intermediation result in such a huge
gap. The modern concepts of supply chain management have to be
introduced to improve the situation.
1.2 Value chain of coconut and Neera
1.2.1 The Anand pattern value chain has the potential to be replicated
in the case of coconut also. Coconut farmers are not getting stable
prices for their produce. The price of coconut fluctuates in tune with
the price of coconut oil which again is dictated by the price of
substitutes, demand-supply dynamics and; import policy of the
Government. The age old product mix of the sector viz., coconut-
copra-coconut oil is still predominating the value chain of coconut even
Page 26
today without much differentiation. Though, several other coconuts
producing countries, smaller than India, like Philippines and Sri Lanka
have diversified their product mix and captured international markets
for value added products, India‟s record in value addition is not that
encouraging. Unless we are able to decouple coconut price from
coconut oil price and link to value added products, the future of
coconut farmers will remain bleak.
1.2.2 The pioneering efforts made by the Coconut Development Board

to produce and market Neera through Coconut Producer Companies
will be a game changer in the coconut sector. Neera is the new ray of
hope for the coconut growers of the country who are often destined to
bear the brunt of fluctuating and falling prices. The objective of the
Neera value chain must be to enhance the income of the farmers by
creating and delivering value to the consumers. Producing what the
consumer demands is totally a different ball-game from consuming
whatever is produced. It is a departure from production driven supply
chains to market driven value chains and will entail huge investments
in creating appropriate marketing ecosystem like post-harvest
logistics, processing, packaging, retailing and information systems.
The creation of an integrated value chain will promote healthy
relations among the various actors, eliminate value sucking activities,
bring in coir reduction, accelerate responsiveness, magnify the returns
of farmers and provide value for the money paid by the consumers.
The value chain models of coconut and Neera and Neera products are
given below.
Page 27
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ESSAR ENGINEERS
Manufacturers of Coir & Coconut processing Machinery. TIN No : 33742203185
Specialists in Coir-Pith Processing, Drying & Compacting Machineries CST No : 855382dt.01-04-2004
519/1A, Athipalayam Road, Phone : + 91 422 2012617

Chinnavedampatti, Ganapathy, E-mail : essareng@yahoo.com
Coimbatore –641 006. info@essarengineers.com
Tamil Nadu. INDIA web: : www.essarengineers.com
QUOTATION
TO REFERENCE No DATE
Ms – Rm .DHEIVANAI 368 - GS 29/11/14
PROPERITOR
GROW RICH COCO MANUFACTURING COMPANY
15 – MAHAL VADAM POKKI STREET,
MADURAI – 625 001
Coir - Pith Grow Slab making Machine
It Consists of Hydraulic Power unit, Dust proof Electrical

Control panel, Forming Chambers & Forming Chamber lifting
Arrangements. It consists of three forming cylinders for
forming the grow slab and two cylinders for lifting the forming
chamber to eject the formed slab. The forming chamber is of
adjustable type to accommodate all sizes. It is a semi-
automatic model.
MACHINE SPECIFICATIONS:
120 x 15, 100X15, 90X15, 80X15,
Grow Slab sizes possible 120 x 18, 100X18, 90X18, 80X18,
120 x 20, 100X20, 90X20, 80X20
Moulds supplied with the Machine 100X20, 100X18 & 100X15
75 to 100nos / Hour (For Single Slab)

Production Capacity OR
150 to 200nos / Hour(For Double Slab)
Press Capacity 250 TONS

Press Arrangement VERTICAL
HYDRAULIC POWER UNIT
Reservoir (Oil Tank) 900 Ltrs Capacity
Motor 25H.P
Oil Cooler Copper Tube Cooler
MACHINE STRUCTURE
Machine Structures Are Made Of Mild Steel Plates
Page 30
ESSAR ENGINEERS

COMMERCIAL TERMS AND CONDITIONS
BASIC PRICE- INCLUDED

HYDRAULIC OIL 5 BARRELS INCLUDED
1 TOTAL PRICES
TRANSPORT , ERECTION AND COMMISIONING INCLUDED
TOTAL
ADD 5% AGAINST TIN No,. OR 14.5 % INCLUDED
TOTAL 27,70,000
TAXES:VAT @ 5% OR
2 INCLUDED
14.5 %
3 VALIDITY : 30 DAYS W.E.F. ISSUE OF THIS OFFER.
4 EXPECTED DELIVERY 60 DAYS
TO BE PROVIDED BY ERECTION EQUIPMENTS AND SEMISKILLED MANPOWER AS REQUIRED AT SITE. CHARGES OF

5
CUSTOMER : LODGING & BOARDING TO OUR TECHNICIAN DURING THE ERECTION AND COMMISSIONING
6 TERMS OF PAYMENT 50 % ADVANCDE , BALANCE BEFORE DELIVERY
ABOVE PRICE DO NOT INCLUDE,STARTER FOR ELECTRIC MOTOR, MOBILE CRANE, , CABLING
7 EXCLUSIONS : ,EXTERNAL PIPING TO COOLING TOWER, PUMPS, CONTROLS, FOUNDATION BOLTS, CIVIL
WORKS, INSTRUMENTS AND ANY ITEMS NOT SPECIFIED IN OUR OFFER.
ONE YEAR AGAINST ANY MANUFACTURING DEFECTS (EXCLUDING ELECTRICAL & BOUGHT OUT
8 WARRANTY :
ITEMS)
WARRANTY REPLACEMENT OF DEFECTIVE MATERIAL CAN BE ENTERTAINED ONLY AFTER RECEIPT OF THE
9
REPLACEMENT : SAME AT OUR END DURING THE WARRANTY PERIOD.
NOTE: Additional Moulds can be supplied as per your requirement at extra cost.
FOR ESSAR ENGINEERS,
Authorized Signatory
Page 31
ESSAR ENGINEERS


QUOTATION
Mrs .Rm .DHEIVANAI 368– 5 Kg 29/11/14
PROPERITOR
MADURAI – 625 001 MAIL

Coir - Pith 5Kg Block making Machine
ConsIsts of Hydraulic Power unit, Dust proof Electrical

Control panel, Forming Chambers & Holding Chamber with
20 blocks capacity mounted on sturdy structure. The forming
chamber consists of a main compacting cylinder for forming
the block and three Holding cylinders to hold the block
formed. It is a fully automatic model.
We are a registered machinery manufacturer of Coir-board,

INDIA
Block size 30 X 30 X 9 to 12 Cm
Compaction Ratio 6:1
Block Weight 4.5 to 5 Kgs
Production Capacity 100 to 110 Blocks / Hour
Press Capacity 100 TONS
Press Arrangement Horizontal

HYDRAULIC POWER UNIT
Reservoir (Oil Tank) 600 Ltrs Capacity
Motor 20H.P
Oil Cooler 110 Copper Tube Cooler
MACHINE STRUCTURE
Page 32
ESSAR ENGINEERS

BASIC PRICE- INCLUDED

HYDRAULIC OIL 3 BARRELS INCLUDED
1 TOTAL PRICES TRANSPORT , ERECTION AND COMMISIONING INCLUDED
TOTAL
ADD 5% AGAINST TIN No,. OR 14.5 % INCLUDED
TOTAL 17,50,000/-
2 TAXES:VAT @ 5% OR 14.5 % INCLUDED
ERECTION EQUIPMENTS AND SEMISKILLED MANPOWER AS REQUIRED AT

TO BE PROVIDED BY CUSTOMER :
5 SITE. CHARGES OF LODGING & BOARDING TO OUR TECHNICIAN DURING
THE ERECTION AND COMMISSIONING
ABOVE PRICE DO NOT INCLUDE,STARTER FOR ELECTRIC MOTOR, MOBILE

CRANE, , CABLING ,EXTERNAL PIPING TO COOLING TOWER, PUMPS,
7 EXCLUSIONS :
CONTROLS, FOUNDATION BOLTS, CIVIL WORKS, INSTRUMENTS AND ANY
ITEMS NOT SPECIFIED IN OUR OFFER.
ONE YEAR AGAINST ANY MANUFACTURING DEFECTS (EXCLUDING

8 WARRANTY :
ELECTRICAL & BOUGHT OUT ITEMS)
REPLACEMENT OF DEFECTIVE MATERIAL CAN BE ENTERTAINED ONLY

9 WARRANTY REPLACEMENT : AFTER RECEIPT OF THE SAME AT OUR END DURING THE WARRANTY
PERIOD.
FOR ESSAR ENGINEERS

We trust the above information will meet your kind
consideration and look forward to receive your order.
Page 33
ESSAR ENGINEERS

QUOTATION
Ms – Rm .DHEIVANAI 368 – CLEANING SYSTEM 29/11/14
PROPERITOR
MADURAI – 625 001
MAIL
COIR PITH SCREENER ,VIBRATOR AND CUTTING MACHINE
IT CONSISTS OF CONVEYOR , VIBRATOR AND SCREENER TO

REMOVE THE WASTE FIBER AND FOREIGNMATTERS
CUTIING MACHINE – TO CUT INTO DIFFERENT SIZES
CAPACITY 1000 TO 1500 Kgs PER Hr
MOTOR 4 HP - + 2 + 2 – 8 HP
CONVEYOR LENGRH APPROXIMATE 70 *Ft
MACHINE STRUCTURE
Page 34
ESSAR ENGINEERS

Screener Set for 5KG Machine

PITH SCREENER 1 No
VIBRATOR 1 NO
CONVEYOR SYSTEMS 1 No
1 TOTAL PRICES
CUTTING MACHINE 1 No
TOTAL 8,80,000


7 EXCLUSIONS :

8 WARRANTY :

PERIOD.
FOR ESSAR ENGINEERS

Page 35
ESSAR ENGINEERS

QUOTATION
Ms – Rm .DHEIVANAI 368 – CLEANING SYSTEM 29/11/14
PROPERITOR
MADURAI – 625 001
MAIL
COIR PITH SCREENER ,VIBRATOR AND CUTTING MACHINE
IT CONSISTS OF CONVEYOR , VIBRATOR AND SCREENER TO

REMOVE THE WASTE FIBER AND FOREIGNMATTERS
CUTIING MACHINE – TO CUT INTO DIFFERENT SIZES
CAPACITY 1000 TO 1500 Kgs PER Hr
MOTOR 4 HP - + 2 + 2 – 8 HP
CONVEYOR LENGRH APPROXIMATE 70 *Ft
MACHINE STRUCTURE
Page 36
ESSAR ENGINEERS

Screener Set for Grow Bag Machine

PITH SCREENER 1 No
VIBRATOR 1 NO
CONVEYOR SYSTEMS 1 No
1 TOTAL PRICES
CUTTING MACHINE 1 No
TOTAL 8,80,000


7 EXCLUSIONS :

8 WARRANTY :

PERIOD.
FOR ESSAR ENGINEERS

Page 37
RAW MATERIAL PRICE EVIDENCE

There is a surplus availability of raw material from local, and also large number
of suppliers of our raw material , coir pith. Most of the suppliers are individuals
and local village peoples, uneducated. So there is no written documental
evidence for pricing and billing etc., Approximate Price of Raw Material is
Rs.4,500/‐ Metric Ton.

SELLING PRICE EVIDENCE
We are deemed exporter. Since to maintain the confidential of the business, we
are sorry to say , and unable to publish our buyer details. Grow Bag Rs.11,000/‐
Per Metric Ton and for 5 Kg Rs.8,000/‐ Per Metric Ton.

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Manufacture The Coir Products Needs Project Report

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EXECUTIVE

1. Raw‐material stock 58.5 51.97 57.17 62.88 69.17

Street mahal vadampokki street

Factory Street pallapatti main road

Factory Area mattaparai

Factory City nilakottai

Factory District Dindigul

Factory State TamilNadu

Factory Pincode 624213

Type of Industry Manufacturing

Product Name coir pith grow bag

No of key persons involved 1

Father/Husband Name RAMANATHAN N

mahal vadampokki street Personal Finance

Telephone number 9994918108 Do you have Bank account Yes

Mobile number 9500969868 Bank name Bank of India

Educational background diploma in pharmacy Branch madurai main

Whether voter identity card available Account number 825010110011694

Social status FC Account type Savings Bank

Employment of spouse Self employed IFSC code BKID0008250

Qualification of spouse MSc Credit card No

Immovable Properties( Including Land and Building ) 0.00

Investment in Business Capital 0.00

Deposits with Banks/institutions 0.00

Shares/Debentures ( Market Value ) 0.00

Life Insurance Policies ( Surrender Value ) 0.00

Value of Vehicles ( Market Value ) 0.00

Other Assets ( Incl. Jewellery ) 0.00

Total Assets 0.00

Loans Availed from Banks (Total Outstanding) 0.00

Other Liabilities 0.00

Total Liabilities 0.00

Project Cost (Rs.lakhs)

Plant and Machinery

Furniture and Fittings 0.00

Computers and office automation 0.00

Testing equipment 0.93

Other fixed assets 0.00

Erection/installation charges 1.00

Pre-operative expenses 4.00

Provision for contingencies 1.00

Working capital margin 4.07

Total Cost 94.80

Owners contribution 5.00%

Owners contribution 4.74

Loan from bank/other institutions 90.06

Name of Business Enterprises : GROW RICH COCO MANUFACTURING COMPANY

Fullfillment of statutory requirements

1.Approval from Local Authority / body Obtained

2.Approval for Building Plan Obtained

3.Approval from Inspector of Factories To be Obtained

4.Approval from Electricity Board To be Obtained

5.Have you obtained Import and Export Code? To be Obtained

6.Sales Tax Registration To be Obtained

7.Service Tax Registration Not Applicable

8.Pollution Control Board Clearence Not Applicable

9.Registeration for Partnership/Company/Co-operative Society Not Applicable

Name of Business Enterprises : GROW RICH COCO MANUFACTURING COMPANY

Personal strengths in the area of business