Introduction

Project report for coir based products is as follows:

India accounts for more than two-thirds of the world production of coir and coir products. Although India has a long coastline dotted with coconut palms, the growth of the coir industry in other coastal States has been insignificant. Indian coir industry is an important cottage industry contributing significantly to the economy of the major coconut growing States and Union Territories, i.e., Kerala, Tamilnadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Orissa, Assam, Andaman & Nicobar, Lakshadweep, Pondicherry, etc. About .5.5 lakh persons get employment, mostly part-time, in this industry. The exports from this industry are around Rs. 70 crores. Coconut husk is the basic raw material for coir products. Around 50 percent of the available coir husk is used to produce coir products. Hence, there is scope for growth of the coir industry. India accounts for more than two-thirds of the world production of coir and coir products. Kerala is the home of Indian coir industry, particularly white fiber, accounting for 61 percent of coconut production and over 85 percent of coir products. Although India has a long coastline dotted with coconut palms, the growth of the coir industry in other coastal States has been insignificant. The market value of husks consumed is between Rs 259.36 crore to Rs 315.12 crore. It is estimated 127824.62 lakh husks can be used for fiber generation and estimated market value will be Rs 913.03 crore to Rs 1109.34 crore per annum.

Product / Services & process

The firm is planning to produce the following product from coir.

1) Coir Pith - It is an excellent soil conditioner and is being extensively used as a soil-less medium for agri-horticultural purposes. With its moisture retention qualities, coir pith is ideal for growing anthuriums and orchids.

2) Yarn (with different sizes) - It is used for Manufacture of mats/matting and carpets, rubber based brush mats/matting's, nettings / Geo-textiles (land – scalping and on embankments of road construction for prevention of soil erosion).

3) Fibre - It is normally used in mattress and pillows/cushions. The material is also used for insulation and packaging.

The three product has different utility and used in different markets.

Plant & Machinery / Equipments

The following are the list of machineries used in the firm

1) Beater

2) Pith screener

3) Fiber screener

4) Pith coveyor

5) Fiber conveyor

6) Husk conveyor

7) Beater suit

8) Fiber bailing press

9) Automatic double head machines

10) Willowing machines

Market potential & Strategy

The market value of husks consumed is between Rs 259.36 crore to Rs 315.12 crore. It is estimated 127824.62 lakh husks can be used for fiber generation and estimated market value will be Rs 913.03 crore to Rs 1109.34 crore per annum. 539815-ton fibres are being consumed in India. The market value of the consumed fibers is Rs 890.69 to Rs 1199.16 crore. The utilization of coir fiber stands at 28.41 %. It has the potential to generate revenue of Rs 3135.54to Rs 4221.44 crore per annum. The Indian coir industry is an important cottage industry contributing significantly to the economy of the major coconut-growing States and Union Territories such as Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Orissa, Assam, Andaman & Nicobar, Lakshadweep, and Puducherry. About 5.5 lakh get employment, mostly part-time, from this industry. Exports from the coir industry are around Rs 3000 crore. Coconut husk is the basic raw material for coir products. At least 50 percent of the available coir husk is used to produce coir products. The rest is used as fuel in rural areas. Hence, there is scope for growth of the coir industry.

The firm is planning to produce Coir pith, yarn ( with different sizes) and fibers. These three products have a huge demand in the market and before starting the firm itself, the company has an order from a biofertilizer company to supply tons of coir pith. With the contacts and connections in the market, the firm is looking to leverage more orders. Also regarding the yarn, there is good demand for the same in states like Tamilnadu, Karnataka, Andhra Pradesh, Rajasthan and even good demand abroad too. So need to tie up with exporting firms and marketing firms in different states to promote the product. Regarding the fiber, there are growing demand from bed and pillow manufactures and also sofa manufacturing companies. So planning to organize the production, quality and timely delivery of our products to the veterans in the industry and newcomers in the respective field.

Project at a glance

Name & Address of Unit

Coir based products

Address

Details of unit

Email	:	[email protected]
Phone	:	00000
Constitution	:	Proprietership
Total project cost	:	*******
Fixed Capital	:	*******
Working Capital	:	*******
Total Bank loan	:	*******
Promoter(s) contribution	:	*******
Term loan	:	*******
Working capital loan	:	*******

Name & address of promoter(s)

Name		: Your name
Address		: Address
Phone		: 00000
Designation		: Proprietor
E-mail		: [email protected]

Project Feasibility Ratios

Debt Service Coverage Ratio (Average)

:1.87

Current ratio (Average)

:2.63

	Year 1	Year 2	Year 3	Year 4	Year 5
Current ratio	1.53	2.06	2.62	3.19	3.76
Quick ratio	1.13	1.56	2.10	2.64	3.18
Interest coverage ratio	3.87	5.55	7.00	9.48	14.71
Debt equity ratio	2.863	2.080	1.528	1.020	0.542
TOL/TNW	3.02	1.45	0.79	0.43	0.21
DSCR	1.65	1.86	1.90	1.94	1.97
Gross profit Sales Percentage %	29.23 %	28.54 %	28.18 %	27.86 %	27.50 %
Net profit Sales Percentage %	10.84 %	10.56 %	11.10 %	11.57 %	11.90 %
BEP in % of installed capacity %	49.90 %	27.12 %	27.12 %	27.12 %	27.12 %
BEP in sales of Rs	2,620,800.00	1,840,695.65	1,972,173.91	2,103,652.17	2,235,130.43
Return On Capital Employed	0.26	0.34	0.34	0.33	0.33

Project Feasibility graph

Net profit Sales %

Quick ratio

Revenue v/s Expense

Expense Splitup

Project Cost

Sl. no	Item	Amount Rs
1	Building advance	*******
2	GST	*******
3	Willowing machines	*******
4	Automatic double head machines	*******
5	Fiber bailing press	*******
6	GI sheet	*******
7	Beater suit	*******
8	Husk conveyor	*******
9	Fiber conveyor	*******
10	Pith conveyor	*******
11	Fiber screener	*******
12	Pith screener	*******
13	Beater	*******
14	Racks and storage units	*******
15	CCTV, office furnitures	*******
16	Computer & printer	*******
17	Electrification and cabling	*******
18	Preliminary expenses	*******
19	contingencies	*******
20	Interior work	*******
21	Generator	*******
22	Working Capital	*******
	Total	*******

Working Capital Computation

Sl. no	Item	Amount Rs
1	Consumables / stock in hand	*******
2	Work in progress	*******
3	Finished goods	*******
4	Working expense.	*******
5	Receivables/Sundry debtors	*******
6	Payables	*******
7	Total working capital	*******
8	Own Contribution	*******
9	Working capital loan	*******

Annual Sales / Revenue

Sl. no	Item	Rate		Quantity	Unit	Total Rs
1	Coir pitch	*******	X	120000	Square feet	*******
2	Yarn	*******	X	26400	Kilogram	*******
3	Fiber	*******	X	234000	Kilogram	*******
	Total					*******

Total Yearly Expense

Sl. no	Item	Amount Rs
1	Rent	*******
2	salary	*******
3	Repairs & Maintanance	*******
4	Electricity	*******
5	Office expense & utilities	*******
6	Raw materials	*******
7	Marketing/Advertisement	*******
	Total	*******

Application of Fund

Sl. no	Item	Subsidy %	No.	Rate	Amount Rs
1	Building advance	*******	1	*******	*******
2	GST	*******	1	*******	*******
3	Willowing machines	*******	1	*******	*******
4	Automatic double head machines	*******	2	*******	*******
5	Fiber bailing press	*******	1	*******	*******
6	GI sheet	*******	1	*******	*******
7	Beater suit	*******	1	*******	*******
8	Husk conveyor	*******	1	*******	*******
9	Fiber conveyor	*******	1	*******	*******
10	Pith conveyor	*******	1	*******	*******
11	Fiber screener	*******	1	*******	*******
12	Pith screener	*******	1	*******	*******
13	Beater	*******	1	*******	*******
14	Racks and storage units	*******	1	*******	*******
15	CCTV, office furnitures	*******	1	*******	*******
16	Computer & printer	*******	1	*******	*******
17	Electrification and cabling	*******	1	*******	*******
18	Preliminary expenses	*******	1	*******	*******
19	contingencies	*******	1	*******	*******
20	Interior work	*******	1	*******	*******
21	Generator	*******	1	*******	*******
	Total Investment				*******
	Total Subsidy				*******
	Net Investment				*******

Means of Finance

Sl. no	Item	Amount
1	Term Loan	*******
2	Working capital Loan	*******
3	Total loan	*******
4	Term Loan contribution	*******
5	Working capital contribution	*******

Profitability Statement

		Year 1(!*)	Year 2	Year 3	Year 4	Year 5
Revenue from operation
Sales	15.93	*****	*****	*****	*****	*****
Add :
Closing stock		*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Less :
Opening stock		*****	*****	*****	*****	*****
Stock purchase	7.20	*****	*****	*****	*****	*****
Salary	3.60	*****	*****	*****	*****	*****
Repairs and maintenance charges	0.24	*****	*****	*****	*****	*****
gas	0.12	*****	*****	*****	*****	*****
ELECTRICITY bill	0.12	*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Gross profit		*****	*****	*****	*****	*****
Less :
Rent	0.12	*****	*****	*****	*****	*****
Telephone/Postal &internet charge	0.12	*****	*****	*****	*****	*****
Total		*****	0*****	*****	*****	*****
Depreciation		*****	*****	*****	*****	*****
Interest on TL		*****	*****	*****	*****	*****
Interest on WC		*****	*****	*****	*****	*****
Total		*****	*****	*****	*****	*****
Profit before tax		*****	*****	*****	*****	*****
Income Tax		*****	*****	*****	*****	*****
Profit after tax		*****	*****	*****	*****	*****

Cash flow statement

Cash Inflow	Pre operative period	Year 1	Year 2	Year 3	Year 4	Year 5
Capital	0.63	*****	*****	*****	*****	*****
Subsidy	*****	*****	*****	*****	*****	*****
Termloan	*****	*****	*****	*****	*****	*****
Profit before tax with interest	*****	*****	*****	*****	*****	*****
Increase in WC loan	*****	*****	*****	*****	*****	*****
Depreciation	*****	*****	*****	*****	*****	*****
Increase in Current liability	*****	*****	*****	*****	*****	*****
Total Cash Inflow	*****	*****	*****	*****	*****	*****
Cash Outflow
Fixed Assets	*****	*****	*****	*****	*****	*****
Increase in Current asset		*****	*****	*****	*****	*****
Interest on TL	*****	*****	*****	*****	*****	*****
Interest on WC	*****	*****	*****	*****	*****	*****
Income Tax	*****	*****	*****	*****	*****	*****
Decrease in Term loan		*****	*****	*****	*****	*****
Drawing	*****	*****	*****	*****	*****	*****
Total Cash Outflow	*****	*****	*****	*****	*****	*****
Opening balance	*****	*****	*****	*****	*****	*****
Net Cashflow	*****	*****	*****	*****	*****	*****
Closing balance	*****	*****	*****	*****	*****	*****

Balance sheet

Liability	Pre operative period	Year 1	Year 2	Year 3	Year 4	Year 5
A. Share holders funds
Capital	*****	*****	*****	*****	*****	*****
Reserve & Surplus	*****	*****	*****	*****	*****	*****
B.Non current Liabilities
Termloan	*****	*****	*****	*****	*****	*****
C.Current Liabilities
Working capital loan	*****	*****	*****	*****	*****	*****
Account payable		*****	*****	*****	*****	*****
Total Liability	*****	*****	*****	*****	*****	*****
Asset
A. Non current Assets
Fixed Assets	*****	*****	*****	*****	*****	*****
B. Current Assets
Inventory	*****	*****	*****	*****	*****	*****
Trade receivables	*****	*****	*****	*****	*****	*****
Cash and cash equivalence	*****	*****	*****	*****	*****	*****
Total Asset	*****	*****	*****	*****	*****	*****

Repayment of Term loan

Year	Installment	Outstanding at the beginning	Principal repayment	Interest	Amount paid	Outstanding at the end
1	1	*****	*****	*****	*****	*****
1	2	*****	*****	*****	*****	*****
1	3	*****	*****	*****	*****	*****
1	4	*****	*****	*****	*****	*****
1	5	*****	*****	*****	*****	*****
\|	\|	\|	\|	\|	\|	\|
\|	\|	\|	\|	\|	\|	\|
5	56	*****	*****	*****	*****	*****
5	57	*****	*****	*****	*****	*****
5	58	*****	*****	*****	*****	*****
5	59	*****	*****	*****	*****	*****
5	60	*****	*****	*****	*****	*****

Debt Service Coverage Ratio

Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
Receipts
a).Net Profit	*****	*****	*****	*****	*****
b).Depreciation	*****	*****	*****	*****	0.30
c).Interest on termloan	*****	*****	*****	*****	*****
Total	*****	*****	*****	*****	*****
Repayments
a).Loan Principal	*****	*****	*****	*****	*****
b).Interest on termloan	*****	*****	*****	*****	*****
Total	*****	*****	*****	*****	*****
DSCR	*****	*****	*****	*****	*****

Depreciation

Particulars	Rate	Year 1	Year 2	Year 3	Year 4	Year 5
Building	*****	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Computers/ Printers /Photocopier/Electronic gadget	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Furniture & fixtures	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Racks & storage/Interior works	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
new item	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
new	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Air-conditioning	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Other investments	00	*****	*****	*****	*****	*****
Less Depreciation		*****	*****	*****	*****	*****
Written down value		*****	*****	*****	*****	*****
Total less depreciation		*****	*****	*****	*****	*****
Total written down value		*****	*****	*****	*****	*****

Conclusion

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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