Report for Manufacture of Coir panel Board

Introduction:

Coir medium density fibre board is the product innovated by Central Institute of Coir
Technology, COIR BOARD, Govt. of India, No. 3A, Peenya Industrial Area, II Phase, Bangalore
– 560 058. The product is 100% wood free material made out of natural fibres such as coir and
jute fibres. The fibres are used as raw material with thermosetting adhesive as binder. Indian
standard for the product has been evolved and the corresponding number is IS 15491 : 2004.
Coir fibre manufactured as per IS 9308(part 2) or IS 9308(part 3) are processed through needled
felt plant(non woven system) to make uniform mat in densities according to the requirement. To
give a smooth finish on the surface, finer fibres such as jute fibres are carded and spread to give a
uniform layer on a suitable carrier like paper. These fibre mats thus produced are impregnated
with thermosetting adhesive and pressed in to panels under controlled temperature, pressure and
time to form coir medium density fibre boards. There are three grades of coir medium density
fibre boards as per the Indian standard grade 1, grade 2 and grade 3.
The word ‘coir’ is derived from kayar which in Malayalam means a rope. The word seems to
have been introduced into the European literature by Marcco polo, the Italian traveler, in thirteen
century.

Coir is stiff coarse fibre and is being found between the husk and the outer shell of a
coconut. The individual fibre cells are narrow and hollow, with thick wall made of cellulose.
There are two varieties of coir; (i) brown coir extracted from a varieties ripe coconut which
contains more lignin and less cellulose and are stronger but less flexible. (ii) White coir extracted
from coconut before they are ripe, which are white or light brown in colour and are smoother
and finer, but also weaker.
The physical and chemical properties of coir are as follows:

Physical properties of coir fibre:

Coir length : 10-30 cms

Fibre length : 0.6 mm
Diameter : 16 micron
Density : 1.4 g/cc
Tenacity : 10 g/tex
Breaking elongation : 30%
Moisture content at
65% RH : 10.5%
Swelling in water : 5% in diameter

Chemical properties (composition)

Water soluble : 5.25%
Pectin & related Compounds : 3.3%
Hemi cellulose : 0.25%
Cellulose : 43.44%
Lignin : 45.84%
Ash : 2.22%
Although coconut palms grow throughout the world’s tropical regions, the vast majority of the
commercially produced coir comes from India and Sri Lanka. India produces about one-fourth of
the world’s 55 billion coconuts each year, out of which only 15% of the husk fibre are actually
recovered for use. India annually produces about 2, 80,000 metric tons of coir fibre.

Brown coir is used in floor mats and door mats, brushes, mattresses, floor tiles and sacking. Pads
of curled brown coir fibre, made by needling–felting are shaped and used to fill mattresses. A
major portion is sprayed with rubber latex to be used as upholstery padding for the automobile
industry in Europe. Major use of white coir is rope manufacture. Geo-textile from coir fire such
as meshes and netting, needled felt and pads, erosion control blankets and mulch blankets, geo-
cushions and geo beds branded ropes anti weed blankets are effectively used in soil bio
engineering applications.

For the manufacture of sheet, coir in loose mass can not be used. It requires uniform layer of coir
in the form of mat. Needled coir felt in suitable thickness was found to form required raw
material for making sheet.

COIR COMPOSITE PANEL BOARDS

Wood can never be replaced in its entirety. Considering the depletion to tropical forest and
wood, using renewable material like Coir will keep up the ecological balance. Usually substitute
like plywood are manufactured with imported logs. These logs are over 90 years old from
tropical forest. Coir Board at its Research Institute developed the following coir composite panel
products, which are very suitable for building industries.
Coir Veneer Board, Coir Medium Density Fiberboards, Coir Block Boards, Coir Hard
Board
Usually substitute like plywood are manufactured with imported logs. These logs are over 90
years old from tropical forest. Whereas, in Coir is a renewable resources (renew ability is only
45-60days). This will help the cultivation of the coconut trees to be improved and would create
direct impact on economy of the rural sector. This would help the rural sector to generate wealth
from the waste. . These industries will increase the direct employment to the rural sectors. The
Coir composites panel products manufactured from natural fibers will be a good alternate to
wood panel products.

Coir Veneer Board .

An Indian standard specification has brought out with Bureau of Indian standards on Coir
Veneer board. IS 14842-2000 Specifications for Coir Veneer Board for General Purposes.

Coir Medium Density Fiberboards

An Indian standard specification has brought out with Bureau of Indian standards on Coir
Medium Density Fiberboard. IS 15491:2004 Specification for Coir Medium Density Fiberboard
for General Purposes

Coir Block Boards

. A draft Indian standard specification has brought out with Bureau of Indian standards on Coir
Faced Block Boards.
 Coir Hard Board

A draft Indian standard specification has brought out with Bureau of Indian standards on Coir
Hard Boards for general purposes.

Characteristic

 Coir-composites are Phenol Bonded Board.

 Stronger as it is made of Fibre known for its strength and load bearing properties.
 Attractive natural look and can be used as it is.
 Painted, polished or laminated.
 Water proof with minimum surface absorption
 More economical than other phenol bonded boards.
 Good smooth appearance on both sides.
 Strong and rigid.
 Termite and insect resistant.
 Flame Retardant.
 Can be Nailed, Screwed and Cut Sharply.
 Interior of furniture and cabinets made with Coir ply need not be painted or polished.
 Environment friendly
 Low Paint consumption.

Production Cost of Non-woven Coir Felt

Sl. Particulars Amount (in Rupees)

No.
I Cost of the Project
1. Land 5000 sq. ft @ Rs 70.00 per sq. ft. 350,000.00
2. Building 2500 sq. ft. @ Rs. 500.00 per sq. ft. 1250,000.00
3. Machinery 2000,000.00
4. Electrical installations 20,000.00
5. Installation and other miscellaneous 15,000.00
6. Working capital 444,650.00
Total 4079,650.00
II Operation cost (25 days) 25,000.00
1. 200 needles/day @Rs. 5.00 per needle
2. Fibre 1008 kgs @ Rs. 12.00/kg 302,400.00
3. Wages -7 person @ Rs.5000.00 per month 35,000.00
4. Labour benefit @35% 12,250.00
5. Repairs & maintenance 35,000.00
6. Electricity 25,000.00
7. Admin expenses 10,000.00
Total operation cost 444,650.00
III Annual Expenses
1. Operation cost per month x 12 5,335,00.00
2. Depreciation– building @ 5% 62,500.00
3. Depreciation – machinery @10% 200,000.00
4. Interest on bank loan @16% 522,195.00
Total 6,120,495.00
IV Sales proceeds
1. Annual production of coir felt 252000 sq mts
2. Annual expenses 6,120,495.00
 3. Cost of production per sq. mt. 24.29
4. Sale value per sq. mt. 30.00

MATERIALS AND METHODS FOR THE MANUFACTURE OF COIR PANNEL BOARD

Coconut coir non-woven felt

Phenol Cardanol Formaldehyde or Phenol Formaldehyde Resin Adhesive
BOPP film as releasing agent
Preservative Chemicals

Flow chart for the manufacture of Coir Sheets is given in Fig .1.

NEEDLED CROSS CUT TO COMPRESSED IN

COIR FELT REQUIRED LENGTH HOT PRESS

BAMBOO MATS

PROPHYLACTIC
TREATMENT

ASSEMBLING & RESIN &

STABILISATION &
HOT PRESSING PRESERVATIVE
DRYING
APPLICATION

PACKING
DIMENSIONING &
DESPATCH

CONSUMER
PRODUCTS
1. Coconut coir non-woven felt:
Non-woven coir felt was supplied by the
sponsor, M/s. Coir Board, Bangalore.
Felts were obtained in rolls of about 4
feet width. The thickness of the non-
woven felt varied from 4.25 cm to 4.78
cms with an average thickness of 4.5 cm.
The felt is light weight porous material
weighing about 1100 gm/m2.

2. Resin:

Since corrugated roofing sheets are meant to use under exterior condition, the bonding material
must be water and weather resistant. Two types of resin were attempted to make coir based
corrugated sheets.
Phenol Formaldehyde resin (conventional).
Phenol cardanol formaldehyde resin (PCF).

Although initial trials were carried out with both the resins, the final pilot scale trials were done
with PCF resin keeping in view of the eco friendly nature of the final product.

The main constituents of PCF resol resins are phenol, cardanol, formaldehyde and a catalyst.
Properties of resins depend upon the proportion of chemical ingredients used and method applied
to synthesize the same

Raw materials for resin manufacture:

Phenol: is available either in crystal form or in liquid form. If crystalline phenol is used it has to
be melted either by keeping the drum in a steam pit or by heating electrically to around 65°c and
then loaded into kettle. Another way of melting phenol is to add water or formaldehyde (10%)
on the wt. of phenol and allow for 3-4 days in the drum, slowly the phenol gets liquefied

Phenol is highly corrosive and will cause injury to the skin on contact. Handling of
phenol must be done carefully.
Workers should be provided with rubber gloves, rubber shoes and goggles while handling
phenol. In case if it comes in contact with skin, it should be thoroughly washed with water
followed by washing with sodium bicarbonate.

Formaldehyde: Is a gas dissolved in water to form formaldehyde solution. Formaldehyde

solution is commercially available as Formalin of 37% HCHO concentration (w/w). Percentage
purity of formaldehyde is very important in order to use optimum proportion of formalin for resin
manufacture. Formaldehyde is highly irritating to eyes and has pungent odour. If too much
formaldehyde is inhaled, it affects the lungs and long contact with skin leads to dermatitis.
Workers should be provided with gloves, rubber shoes, goggles and nose guard. If formalin
comes with contact with skin or any part of the body, it should be washed thoroughly in running
water.

Cardanol: Cashewnut Shell Liquid (CNSL) is one of the few economic sources of naturally
occurring phenols. The main constituents of CNSL are anacardic acid and cardol in the
approximate ratio of 90:10. When commercial CNSL is distilled, the main decarboxylated
product is cardanol which is a monohydroxy phenol with a linear side chain in the meta position.
The side chain contains on an average two double bonds.

General properties of cardanol and the test methods to find out its suitability as a partial
substitute for phenol in PF resin adhesives are given below.

TEST METHODS TO ASSESS THE QUALITY OF CARDANOL

SL METHODS OF
PROPERTIES REQUIREMENTS
NO. TEST
1. Specific gravity 0.9272 – 0.9335 IS: 840-1964, A-2
2 Volatile losses including moisture Maximum 25 IS: 840-1964, A-3
Iodine value
3 Wij’s method Minimum 220 IS: 840-1964, A-8.1
Catalytic method Minimum 3301 IS: 840-1964, A-8.2
4 Polymerisation time Should not gel IS: 840-1964, A-9
5 Viscosity by polymerisaation 20-25 cp IS: 840-1964, A-10
ASTM-D1084-63
6 Viscosity 45-52 cp
(76) Part-22
ASTM D 2849-69
7 Acid value Maximum 5
(75) PART 36.
ASTM D 2849-69
8 Hydroxyl value 180-200
(75) PART 36.

ADDRESSES OF CARDANOL AVAILABILITY

KARNAS ENTERPRISES,
Bangalore.

2. Cardchem Industries,
Hyderabad.

Sodium hydroxide: is a strong alkali and generates lot of heat when dissolved in water. It is
soapy to touch. Sodium hydroxide should not be touched directly with hands. Always it should
be handled with gloves.
As far as possible care should be taken to avoid any spillages of phenol, formalin or
sodium hydroxide near the kettle. If spillage occurs then the place should be thoroughly washed
with running water. Working place should be clean and tidy.
Resin kettle or Batch resin reactor
Normally resin kettle is made up either of stainless
steel or mild steel. It is advisable to use stainless steel kettle
for longer life and to avoid iron contamination in the resin. It
consists of a cylindrical vessel made up of stainless steel
which is provided with a stirrer, jacket for steam heating and
water cooling, an inlet for the reactants, a pressure relieving
valve and a sight glass for visual observations. A condenser
which may be operated either under vacuum or at
atmospheric pressure is provided for refluxing the volatile
constituents. The stirrer is coupled to a control speed
regulator through a rectangular frame. The jacket is provided
with an inlet and outlet together with a drain vent. The
temperature of the reaction mixture is measured by probe and
is connected to an electronic relay for semi automatic control.
Outlet value is provided by emptying the kettle. Sampling of
the contents of the kettle during reaction is carried out with
the help of the sampling chamber. Photograph of the resin
kettle is shown below.

1. Preparation of phenol formaldehyde resin:

100 parts of molten/liquid phenol and 160 parts by weight of Resin Kettle
formalin (37% formaldehyde content) are charged into resin
reactor and 6 parts of sodium hydroxide in 12 parts of water was added to the reactor. Stirring of
the mixer was done throughout the reaction period until the final cooking of the resin is
completed. Initially the mixture is heated to raise temperature 550-580C and then allowed for self
heating. Heat is generated due to exothermicity of the reaction. The reaction mixture is kept at
820-850C for about 90 minutes till the flow time of the resin reaches 14 – 15 seconds(Depending
on the cooling efficiency of the resin reactor) in hot condition when measured in B-4 flow cup of
IS 3944 and water tolerance is 1:10-14. The flow time at ambient temperature is targeted to 27 ±
5 secs in B-4 flow cup (IS:3944). The product is cooled. Flow chart of resin preparation is given
in fig 2

After complete cooling the resin will have following properties.

Viscosity: Flow time of 27 ± 5 sec, at 250C when
measured in B-4 flow cup of IS:3944
80 ± 10m Pa.s at 250C
Solid content: 50% resin solids
Water tolerance: 1:12 ± 2.5 at 250C
The resin is thereafter discharged and stored in air tight container at room temperature.
Shelf life of this resin when stored at 25 ± 20C is upto 2-3 weeks.
 Charge Cold NaOH
Charge Phenol Charge Formalin
Solution(6% on Start stirring
and Cardanol (0.6part on phenolics wt)
phenolics wt)

Condensation until
Charge Cold NaOH Condensation done
required flow time Charge Formalin
Solution(10% on for 90 minutes
is achieved (1.0 on phenolics wt.)
phenolics wt)

Cooling Resin discharged to

closed containers/resin
applicators
Fig 2: Flow Chart for preparation of PF Resin

Charge Phenol Charge Cold

Charge Formalin NaOH Solution Start stirring
and

Resin discharged to
Condensation until
closed containers/resin
required flow time is
applicators Cooling achieved

2. Preparation of Phenol Cardanol Formaldehyde resin:

80 parts by weight of phenol (molten or liquid) and 20 parts by weight of cardanol are charged
into the resin reactor followed by 60 parts by weight of formalin (37% formaldehyde content). To
the reaction mixture 6 parts of sodium hydroxide in 35 parts of water is added and the mixture is
heated to 900C stirring is initiated at the beginning of the process and continued till the product is
cooled. The reaction mixture is kept at 900±20C for about 90 minutes. The product formed in the
1st stage is cooled to 550C.
10 parts of sodium hydroxide in 45 parts of water is added next to the reaction mixture followed
by 100 part of formalin (37% formaldehyde). The reaction is carried out in 2nd stage at 800 –
820C. Maintain the temperature at 800 -820C till the flow time when measured in B-4 cup of IS:
3944 gives 14-15 seconds in hot condition. Then start cooling to room temperature. Flow chart
of resin preparation is given in fig 3. After complete cooling the resin will have following
properties.

Viscosity: Flow time of 27 ± 5 sec, at 250C when

measured in B-4 flow cup of IS:3944
80 ± 10m Pa.s at 250C
Solid content: 42% resin solids

The resin is thereafter discharged and stored in air tight container at room temperature.
Shelf life of this resin when stored at 25 ± 20C is upto 2-3 weeks.
The resin at this stage becomes completely water soluble when the flow time measured in B-4
flow cup is 22-24 secs (cold) the resin is cooled to room temperature and stored
If the resin becomes thick and loading of resin in the felt / bamboo mat is too high, then the
resin can be diluted with water before dipping. In such event, care should be taken about the
moisture content in the dried and glued felt/ mats.
Consolidation of non-woven coir felt:

The non-woven coir felt, however compact it may be made; the individual coir will not come so
close to each other that it would resist water penetration. Resin which is used as binder, not only
hold the coir in place, but also fill up gaps between them to make the corrugated sheet
unpenetratable. CPF resin which is being used as binder does not have highly gap filling
properties. Hence, closeness of the individual coir will help the resin to bridge the gap between
them. The distance between two coir fibre can be minimized by application of high pressure on
the coir felt.

To overcome this problem the loose felt was pre pressed before glue application. Pre pressing of
felt is done in platen press whereby the loose felt get compressed into compact sheet. A 75%
compression in thickness has been found to work well during gluing of the felt. It has also been
found that pressing under heated platen produces better felt for gluing compared to cold pressing
of felt. Compact felt thus produced retains resin uniformly while resin applied by dipping the felt
into resin contained in tray.

Machinery/ equipment:

 Guillotine Jointer: For cross cutting of coir felt to desired length

 Flat platen hydraulic hot press: For consolidation of the coir felt into compact sheet
 Resin treatment tank: Steel tank 2.75 m x 1.50m x 0.4m. should have draining outlet at
the bottom
 Perforated bed with resin collection tray at below : This should be fixed on a movable
trolley
 Resin squeezing machine: Similar to glue spreader for veneer but without doctors roll
 Jet dryer with conveyor belt
 Assembly Table
 Hydraulic hot press with capacity to attain 50 kgs/cm2 specific pressure and fitted with
mould dies.
 Trimming saws (DD saws)
 Spraying booth

Salient feature in manufacture of coir felt sheet:

1. Coir felt: Uniformity in the coir felt is very important. It has been found that coir felt has
non uniform distribution of coir and in place where density or total coir content in the felt is less,
becomes a vulnerable point in the corrugated sheet for water leakage.

Non woven coir felt is loose mass of coir which can hold very little liquid resin. If non woven
felt, as it is being received, is treated with resin, large quantity of resin remains in the gap in the
felt and has to be squeezed out. Further, resin coated felts become so bulky that these are difficult
to handle for further processing. It has been observed that if the felts are made into compact sheet
by hot pressing under high pressure, all the above mentioned difficulties are overcome.

The colour of the coir determines the final colour of the sheets. It has been observed that white
coir felt looks better than the brown coir felt.

Since coir felt is porous material, it holds enormous quantity of resin during resin application by
dipping. Unless excess resin is not removed by squeezing this extra resin will be waste as, this
resin would be squeezed during hot pressing. Resin content of 70-100 gm/ sq ft (42% liquid) is
good enough for requisite bonding.

Moisture content of coir felt and mats:

Both the coir felt and bamboo mat are available in dried condition of equilibrium moisture
content, further drying of the raw materials are not necessary. However, moisture content of glue
coated felt and mats are more important. Higher moisture content will create blister during hot
pressing and very low moisture content will result in inadequate bonding. Ideal moisture content
for glued coir felt is 12-14% and that of glue bamboo mat is 10 ± 2%.

PCF Resin Adhesive Formulation [for bonding]

The economical feasibility of coir corrugated sheets manufacture depends to a large extent on the
quantity of synthetic resin employed as resin cost is a major component in this products. The
method of resin application is equally important to ensure good bonding throughout as bamboo
mat which is characterized by overlapped slivers inter spread with intersliver spaces resulting in
rough and non-continuous layer of uneven surface.

About 200 kgs of PCF resin is poured into resin applicator. Two kgs sodium pentachlorophenate
dissolved in 200 kg of water is added to the resin applicator.

The concentration of sodium pentachlorophenate is one per cent by weight of liquid PCF
resin. This preservative compound incorporated in the adhesive penetrates into the felts along
with resin and gets fixed during hot pressing and makes Coir corrugated sheets resistant to
fungus and insect attack. About 10 coir felts are dipped into the resin solution at a time. For
adequate soaking the felt/mats are given 3- 5 minutes of dipping time. After the stipulated time
the resin soaked felts are passed through a glue spreader to squeeze out the excess resin from the
felts and layed horizontally for open air drying.

Requirement of PCF resin

The quantity of PCF resin required per unit area of coir sheets depends on its viscosity.
Average quantity of resin required will be around 700 - 1000 gms per sq.mt(42% resin solids) for
a single layer of felt.

STABILIZATION AND DRYING OF RESIN COATED MATS

Resin coated felts and mats are dried in either a drying chamber or industrial dryers
such as band dryer at a temperature of 90 ± 5oC till the m.c. comes down to 14 ± 2 percent.

ASSEMBLY OF COIR FELTS/MATS

Resin coated coir felt were assembled on the metal caul plate with BOPP film on either sides of
the assembly which facilitates the movement of felts/mats to form corrugation as well as to act as
a releasing agent to prevent the sheets from sticking to the platens.
Hot pressing:

The assembled coir felts on a metal caul plate were then loaded into profiled platen fixed to the
hot press and the metal caul plate was withdrawn before applying the pressure. Specific pressure
of 40 kg/cm2 were employed for making corrugated roofing sheets for a period of 8-10 minutes
including 2 breathings given within 90 seconds of loading at a temperature range of 145+5°C.
Photograph of loading and hot pressing is shown below. After stipulated period the hot press is
released and the corrugated sheets are unloaded from the hot press. These sheets are then stacked
horizontally on a uniform platform for a period of about 2-3 days for conditioning.

It has been observed pressure as high as 40 kg/cm2 is enough to make smooth and glossy surface.
Under this pressure the corrugated sheets become almost impervious and water penetration in 5
layer sheet becomes zero and almost negligible in 3 layered sheets.

Note:
Loading of assembly into hot press should be done only after platens have attained required
temperature uniformly.
During removing of the aluminium carrier platen, care should be taken to see that BOPP film
remains uniformly spread on either side of the assembly.
Opening of hot press should be slow process during breathing.

Conditioning of Coir Sheet : Coir sheets should not be taken for trimming immediately after
removal from hot press. After hot pressing, the sheets should be stacked on plain platform and
kept for 2-3 days till the sheets attain room temperature.

DIMENSIONING AND FINISHING

The coir sheets after conditioning to room temperature are taken for dimensioning to
required size by using Double Dimensioning saw.
MECHANICAL REQUIRMENTS OF COIR MEDIUM DENSITY FIBRE BOARDS

Grade 1 Grade 2 Grade 3

Density, kg/mt³ 650-900 500-900 500-900
Variation from mean density, % ±10 ±10 ±10
Moisture content % 5-15 5-15 5-15
Variation for mean moisture content, % ±3 ±3 ±3
absolute
Water absorption percent Max
After 2 h soaking 6 6 9
After 24 h soaking
Up to 6 mm 30 30 45
8 – 12 mm 20 20 30
13 – 19 mm 13 13 20
20 mm & above 12 12 18
Linear expansion(swelling in water)%
Due to general absorption after 24 h soaking
Thickness
Length 4 4 7
Width 0.3 0.3 0.4
Due to surface absorption(in thickness) after 2 h 0.3 0.3 0.4
soaking
4 4 5
Modulus of rupture, Min, N/mm²
in dry condition
up to and incl 20 mm thickness
average 31 29 29
minimum individual 27 25 25
above 20 mm thickness
1) average 27 25 25
2) minimum individual 23 22 22
2) after 8 h boiling
a) up to and incl 20 mm thickness
1)average 17 NA NA
2)minimum individual 15 NA NA
b) above 20 mm thickness
1) average 15 NA NA
2) minimum individual 13 NA NA
Modulus of elasticity, N/mm²
up to and incl 12 mm thickness
1)average 2800 2800 2800
2)minimum individual 2500 2500 2500
above 12mm thickness
1) average 2500 2500 2500
2) minimum individual 2300 2300 2300

Tensile strength perpendicular to

surface(internal bond) Min, N/mm²
up to and incl 20 mm thickness
1)average 0.9 0.9 0.8
2)minimum individual 0.8 0.8 0.7
above 20 mm thickness
1) average 0.8 0.8 0.7
2) minimum individual 0.7 0.7 0.6

Tensile strength perpendicular to

surface(internal bond) Min, N/mm²
After accelerated water resistance
1)average 0.45 0.45 -
2)minimum individual 0.40 0.40 -

Screw withdrawl strength N

a) face
1)average 2300 1725 1725
2)minimum individual 2000 1500 1500
b) edge(for thickness > 12 mm)
1)average 1700 1400 1400
2) minimum individual 1500 1250 1250
Nail holding strength N
a) face
1)average 1400 1400 1400
2)minimum individual 1250 1250 1250
b) edge(for thickness > 12 mm)
1)average 1400 1400 1400
2)minimum individual 1250 1250 1250
Resistance to spread of flame To pass the - -
test

Average and Minimum Individual Glue Shear Strength for Coir Veneer Board

Sl Grade Shear Strength, Min (N)

No.
Dry Mycological Water
State Resistance

(1) (2) (3) (4) (5)

i) BWR
Average 1350 1000 1000
Minimum individual 1100 800 800
ii) MR
Average 1000 800 800
Minimum individual 800 650 650
Investment Required for Establishment of Manufacturing Unit

A. Land and Building

Sl. No. Name of Item/ work Cost(Rs. In lakhs)

I Land and Land Development
1. Land cost of 2200 sq mt,@ Rs 2000/ sq.mt 44.00
2. Development cost @ Rs. 80,000/ha. 0.80
Sub- total I 44.80
II Civil Work
1. Cement compound wall with barbed wire fencing @ Rs. 2.10
525/mt (100m x 100m)
2. Two gates with RCC pillars @ Rs.75,000/- per gate 1.50
3. Building, warehouse of 1250 sq metre @ Rs.7000/sq mtr 87.50
4. Water storage, distribution/drainage and general piping 5.50
5. Electrification 5.00
Sub- total II 101.60
III Administrative Building 200sq. m. @ Rs. 10000/sq.m. 20.00
Vehicle (2 nos.) 14.00
Grand Total (I – III) 180.4

B. Machinery and Equipment

Sl. No. Name of the machine/ equipment Quantity Cost (Rs. in

lakhs)
1. Resin Applicator (2.6MX1.4MX0.5M) 1 no Local make
2. Band Dryer 1 no 40.00
3. Hydraulic Hot Press with platen size 2.44mx1.22m – 10 1 no 40.00
Daylights opening with flat platens.
4. Hydraulic Hot Press with platen size 2.44MX1.05M 1 no 60.00
with 6 Daylight openings and having sinusoidal pattern
moulded dies (corrugated)
5. Guillotine Jointer with 1.22M Knife 1 no 6.00
6. Squeezing Machine (Glue Spreader without Doctors 1 no 3.00
roller) – 1.22M
7. Air Drying Chamber with racks (optional) 2 nos 5.00
8. Trimming Machine (D D Saw) 1 Set 3.00
9. Spray Booth for Surface Coating 1 Station 1.00
10. Resin Kettle (1 ton capacity) 1 no 8.00
11. Thermic fluid Heater ( Boiler) 15 lakh Kcals 1 no 20.00
12. Dust Extraction System 1 no 2.00
13. Scissor Lift 2 sets 3.00
14. Alluminium Caul - 2.44mx1.22m 60 nos. -
15. Blower for cooling 1 no 0.25
16. Air Compressor 1 no 0.25
17. Transformer 500 KVA 1 no 10.00
18. Generator 500 KVA 1 no 20.00
19. Weighing Machine (one ton capacity) 1 no 0.50
20. Storage Tanks for formalin, phenol and cardanol 3 nos 6.00
10,000 litre capacity each
21. Trolley, Knap-sack sprayer and small hand tools As 1.00
 required
Total 189.00

C. RECURRING COSTS (size 2.44 x 1.05m x 3.5mm) 3 ply [for 2 shifts]

(Rs. In lakhs)
Coir
Sl.
Item corrugated
No.
sheets
I Raw Material
1 Coir felts (540 boards per day) 340.20
1080 coirs per day @ Rs.30 /sq mt
1 Felt of 3.5 sq m will cost Rs.105= 1080 x 300 x 105
2. Mats @ Rs.70/- per mat 113.40
No. of mats required per day 540 for 300 days: 540 x 70 x 300
3. PCF resin liquid (42% solids) required per Annum @ Rs.26 per kg 235.12
900 gms/sq m- 2.3 kgs per coir felt
1080x2.3x300 x26 =Rs. 193 lakhs
mats 1kg for 1 mat
: 540x 1 x300 x 26 = Rs.42.12 lakhs
Total adhesive cost =193 + 42.12 =235.12 lakhs
4. Cost of preservative chemical @ Rs.150/kg 17.73
11,820 x 150 (1% on liquid resin)
5. Releasing paper @ Rs.175/kg 31.50
6. Aluminium cauls of 2 mm thick of size 2.5m x 1.25m after accounting for 3.00
scrap value [one time investment]
Total cost of Raw materials 740.95
II Energy requirement
1. Electricity coverage 800 kwh/day @ 4.5/Unit = 800x 4.5 x 300 10.80
2. Fuel 8.80
Total cost of energy 19.60
III Maintenance
Maintenance cost of machinery & equipment.(4% on Machinery cost) 7.47
IV Management and Labour
A Managerial staff
1. General Manager 1 No.@ Rs.25,000 3.00
2. Manager Production & Sales Manager – 2 Nos.@ Rs.15000 3.60
3. Chemist and Quality Controller – 2 Nos.@Rs.10,000/- 2.40
4. Maintenance Engineer – 1 No. @ Rs.8000 p.m. 0.96
5. Machine operator– 3 Nos. (3 x Rs.6000/-) 2.16
6. Boiler operator 3 Nos. (3 x Rs.4000) 1.44
Sub-Total 13.56
B Administrative staff
1. Accountant – 1 No.@Rs.5,000 0.6
2. Clerk/Typist – 2 Nos. (2 x Rs.3000) 0.72
3. Attendant – 1 No. (1 x Rs.2000) 0.24
4. Driver – 1 No. (1 x 2500) 0.30
5. Security guards – 4 Nos. (4 x 2000) 0.96
TOTAL 2.82
C Labour
Semi-skilled labours 45 Nos. Rs.100 x 300/day 13.50
D Social Overheads
 Social overheads like Bonus, P.F., LTC, Medical benefits, Production 7.47
incentives @ 25% of total management and labour cost
Total cost of Management and Labour (A to D) 37.35
Production cost of 162000 coir corrugated sheets(without sales 805.37
promotion and commission cost
Production cost per board in Rupees 497.14
Sales promotion and commission 25.00
E Total Production cost of 845.87
162000 coir corrugated sheets
F Production cost per board in Rupees 522.14
G. Add Depreciation
Buildings 3.07
Machineries 10.52
Total Manufacturing cost 859.46
Production cost per sheet in Rupees 530.53
Production cost per square meter in rupees 207.08