PROJECT PROFILE FOR PVC/ LATEX BACKED COIR TUFTED DOOR MATS MANUFACTURING UNIT
Summary:
PVC/Latex backed Coir tufted Door Mats
1
Project
2
Proposed Location
3
Proposed capacity
4 lakhs SqM per annum
4
Project Cost
Rs.500 lakhs
5
Sales Turnover (At optimum capacity utilization)
Rs.850 lakhs
6
Major Raw materials
Coir, PVC & Latex
7
Land Requirement
8
Man Power
9
PBT (At optimum capacity)
Rs.135 lakhs
10
PAT
Rs.110 lakhs
KSIDC’s Industrial Growth Centre, Pallipuram, Cherthala, Alappuzha District.
2 acres 20 Nos.
Product and Application
The proposal is to set up a PVC or Latex backed Coir tuffed Door Mats manufacturing unit in 2 acres of land at KSIDC’s Industrial Growth Centre, Pallipuram, Cherthala, Alappuzha District. The products proposed have high export market opportunities. The plant will have a capacity to manufacture 4 lakhs Square Meter of finished goods.
The product is formed by tufting coir yarn over PVC/Latex Rubber using automatic device. Mats with varying brush pile (pile heights range from 12 mm to 30 mm) can be manufactured and the mats can be cut in to any shape, size and in rolls which are used as wall to wall carpeting material. Shaped mats, Stencilled designs, Flocked designs are also available. The current trend of the market is towards Latex backed Mats due to its versatility, finish, durability and competitive costing and environmental concern.
Market
The coir industry, one of the major traditional industries in the state, is second only to agriculture as a source of employment in Kerala. It provides employment to around 43 lakhs persons of which 84% are women .Kerala produces about 5641 million coconuts per year from about 818.80 hectares of land under cultivation. Coir is produced from out of processed coconut husk. A study reveals that more than 63% of coconut husk produced in the state has been used for purposes other than coir manufacturing. In Kerala the major coir industrial units are located at Cherthala and Alappuzha area. State Government has identified coir industry as the premium industry in traditional sector and declared its intention to extend all assistance to promote it further.
Coir industries in India have a strong export orientation with the sale of traditionally made yarn, mats, matting rugs and carpets. Since the mid 1970’s export markets have begun to decline because of severe competition from synthetic fibers. A gradual recovery during last decades can be attributed partially to increasing ecological awareness on the part of consumers in the industrially advanced countries.
Indian exports are mainly to USA, European Union, Canada, Japan, New Zealand and United Arab Emirates. The major chunk of Indian coir export is to USA. Kerala based units account more than 90% of India’s exports of all coir products. The ability to explore overseas markets and marketing tie-up is the key factor to success of this industry.
Product
The proposal envisages setting up of one Plant with production capacity of 4 lakhs Sq Metre for the manufacture of PVC & Latex backed Coir Mat.
Technical Aspects:
1. Installed Capacity
4 lakhs Square Meter per annum
2. Location
KSIDC’s Industrial Growth Centre, Pallipuram, Cherthala, Alappuzha District.
3. Technology
Indigenous sources
4. Plant & Machinery
The major item of plant & machinery for the project is “Coir Tufting Machine”, which is used for tufting operations,
i.e.
fixing
Coir
fibre
on
PVC
surface/Rubber Surface. 5. Manufacturing Process
Batch
production method is
employed in
manufacture of coir tufted PVC backed doormats and coir tufted Latex backed doormats. Production process consists of the following four stages. Stage – I Preparation
of PVC mixture/ Latex
Compound :A standard
mix for
a batch (for 98 M2 output
for PVC based door mats and 75 M2 for Latex based doormats) consists of the following
ingredients in
pre -determined quantities) •
P.V.C / Latex compound
•
DOP
•
Stabilizer
•
Filler
•
Dye
The basic characteristics of mix are: •
Chemically inert
•
Water corrosion and weather resistant
•
High strength - to -weight ratio
•
Tough
•
Dent- resistant and
•
An electrical and thermal insulator
Stage - II - Preparation & Feeding of Coir Raw Vaikom 2 ply coir procured from open market is sorted first for prescribed shade and quality using skilled labour force. The sorted coir is then coiled in spools for feeding the same to tufting machine. Stage - III Tufting machine operations Tufting
machine
is
equipment which
a
very
sophisticated
requires specialized scientific
knowledge to understand its functioning. However for layman’s understanding, it can be described as a set of machines of length about 25 to 30 mts over
which
mtr/hour) just
a Teflon like
belt is moving
a conveyor.
Above
(0.78 the
Teflon belt, equipments for tufting coir to melted PVC compound/Latex Compound knives for shaping
and blades and
the finished products are
arranged. Stage – IV : Quality control & Finishing works:The finished output is check on random ensure
then subject to quality
basis using spring balance to
tensile strength
of 16 kg to 18 kg and
bonding strength of 4 kg.
Manual drying work
using moulds and spray painters will be done in out puts which passes quality check.
6. Equipment Suppliers
M/s Wheels Free is an established supplier for machinery items for industries such as Plywood , Rubber and Coir products. M/s Wheels free, Calicut had so far supplied 10 Tufting machines to various clients. Sourcing of Plan & Machinery is an easy process for this industry.
8. Technical Tie-up
Technical tie-up is not necessary for this kind of
project as the technology is well known and well established. 9. Power Requirement
70 KVA
10. Water Requirement
2 KL per day, one open well or bore well would be sufficient to cater the water requirements.
Project cost
The total cost of the project is estimated at Rs. 500 lakhs. The details of the cost are as follows: Sl. No.
Particulars
Rs. Lakhs
1
Land
50.00
2
Land Development
10.00
3
Civil Works (12500 sqft X Rs.1000/-per Sqft)
125.00
4
Plant and Machinery
240.00
5
Utilities
6
Miscellaneous Fixed Assets
8.00
7
Deposits
2.00
8
Preliminary & Pre-operative Expenses
10.00
9
Contingencies
15.00
10
Margin Money for working capital
25.00
Total
15.00
500.00
Working Capital Requirements
On commercial operation of the proposed project, the initial working capital requirement will be to the tune of Rs. 100 lakhs. Packing credit with minimum margin would be available from Banks for Export business. An amount of Rs. 25 lakhs is provided towards margin money for working capital.
Preliminary & Pre-operative expenses
The loan processing charges, preliminary travelling expenses, pre-operative interest etc. are estimated at Rs.10 lakhs.
Contingency
An amount of Rs.15 lakhs is provided towards contingency @4% of the fixed assets excluding land. Proposed Means of Finance
(Rs. lakhs) Promoters Contribution
250.00
Term Loan from KSIDC
250.00
Total
500.00
Major Financial Indices
DER
1:1
ROI
29..85%
Pay Back Period
4.2 Years
IRR
23.7 %
Conclusion & Recommendation
The proposed project is basically to make use of the abundant raw materials available locally as well as skilled labour. Time tested high quality plant & machinery is also locally available. The products have excellent export market opportunities. The domestic market is also vibrant. The project cost is affordable to be in the range of medium scale and offers excellent returns over the investment. The project is technically feasible and economically viable ***
Disclaimer : The findings contained in this Project Profile are based on the initial information collated through primary and secondary research, which is indicative in nature. Reference herein to any specific commercial product, process, service by trade name, trademark, manufacturer, or otherwise, does not constitute or imply its endorsement, recommendation, or favoring by KSIDC or any entities thereof.
