Coir pith is a remnant of the coir industry that is produced after the separation of coir fibre from coconut husk. Cocopeat is the common name for this substance. Coir pith is a very flexible and light material. It tends to hold many times its water content. It can also be compacted into a variety of useful products, such as seed cells and propagating modules.
Guide to The Coir Pith Manufacturer Business
Why has coir pith become increasingly popular in the market? The following are the main properties in coir pith:
- The ability to hold 6-8 times its weight is an indication.
- Excellent ability to retain moisture.
- Due to the sheer lignocellulose bonding, the breakdown is slow.
- High porosity, storage capacity, and long-term nutrition delivery
- Improved root penetration and aeration/oxygenation capacity
- Cation Exchange Capacity, pH levels, and Electrical Conductivity that are acceptable
- Material that is 100 percent biodegradable, natural, & recyclable.
It's better for growing plants, such as in agricultural production. Many greenhouses around the globe use this for the production of flowers, vegetables, fruits, medicinal and decorative plants, and so forth.
Market potential of Coir pith Business
India produces over two-thirds of the world's coir and coir-related goods. Even though India does have a long coastline covered in coconut palms, the rise and economic benefits of the coir industry are evident in significant coconut-growing regions and Territories such as Karnataka, Orissa, Maharashtra, Andaman & Nicobar, Pondicherry, Tamil Nadu, Goa, Lakshadweep, Kerala, Assam, Andhra Pradesh, and others. It employs around 5.5 lakh individuals (mainly part-time). It generates roughly Rs. 70 crores in exports.
The basic raw source for coir products is coconut husk. Coir products account for around half of the accessible coir husk. As a result, the coir business has a lot of potential in the next years. Kerala is the centre of the Indian coir industry, notably white fibre, responsible for 61% of coco output and over 85% of coir items. The market value of husks eaten is estimated to be between Rs 259.36 crore and Rs 315.12 crore. It is estimated that 1,27,824.62 lakh husks will be required to produce the fibre, which will cost between Rs. 913.03 crore and Rs. 1,109.34 crore every year. The country uses 539815-ton fibres locally. The percentage of coir fibre utilized is 28.41%. It has the potential to generate annual revenue of Rupees 3,135.54 - 4,221.44 crore.
The three items Coir pith, fibres, and yarns have a high commercial value, and if adequate branding and marketing development is done, the business may be able to get bookings from major bio fertilizer companies for tonnes of Coir pith before ever getting started. With its market contacts and networks, the company could get a large number of orders soon after its inception. Even just the yarn is popular in Karnataka, Tamil Nadu, Rajasthan, Andhra Pradesh, and other parts of India. As a result, it is critical to forming partnerships with export companies and marketing agencies in other states to increase sales. The fibre, bed & cushion makers and couch makers are all waiting in line for it. Should you wish to enter this market and sell your items, this is an excellent choice.
Read More: Profitable Bio Fertilizer Manufacturing Business Ideas
List of Products Obtained
Coir is thought to provide the following items to the company.
1. Coir pith:
It is an excellent soil enhancer and is widely used as a soilless media alternative, particularly in agriculture and gardening. Coir pith is suitable for the cultivation of orchids and anthuriums for its water-holding properties, therefore, making being coir pith suppliers in India very profitable.
2. Yarn:
Yarn is commonly used in the production of mats, Geo-textiles, rubber-based brush mats, carpets, and other things.
3. Fibre:
This is the stuff that pillows and mattresses are made of. Padding, insulating, and even packaging are all possible uses for this material.
All of the goods listed above are extensively utilized in a variety of markets.
Legal Formalities Required
Licenses, registrations, and approvals are all legal requirements for starting a Coir pith manufacturing business in India. The following is a list:
- Trade Mark
- EPF Registration
- Registration of Firm
- MSME/SSI Registration
- Trade License
- NOC: No Objection Certificate
- Shop act license
- IEC code
- GST Registration
- ESI Registration
Raw Materials Required
The raw material possible to begin a company is inexpensive and plentiful. The primary raw material necessary to begin the company is coconut shells. These would be dried and utilized to get the business up and running. Coconut husk is used to make coir, which is a natural fabric. The number of raw resources in local areas made coir industry famous.
Machinery/Equipment Required
In the next area, we mention the crucial equipment necessary for the business:
- Husk conveyor
- fibre conveyor
- Pith screener
- Pith conveyor
- Willowing machines
- fibre bailing press
- fibre screener
- Beater suit
- Automatic double head machines
- Beater
Manufacturing Process
Coir Fibre:
The basic raw material is procured and kept on farms. Water is used to immerse the aggregated husk. The soaking fabric is then placed in the decorticator, which removes the pith from the fibre. The fibre is now sun-dried and squeezed into 35-Kg bunches by the balling machine before being shipped for purchase.
Coir Yarn:
This product is spun in the same way as cotton yarn. The procedure is broken down into four phases, which are outlined below.
- Spinning
- Slivering
- Winding
- Willowing
Coir fibre is acquired from fibre extraction facilities and sprayed with water to wet it. The wet fibre is transported thru the willowing equipment to remove the impurities after 2-3 hours, and afterward, the fibres are laid parallel to one another. These slivers then are turned into yarn according to the spinning machine's parameters. The thread is now washed and folded into rolls, ready for distribution.
Coir pith Block:
Coir pith is just another product gained from the Coir Fibre Process of extraction. To reduce the EC, raw Coir pith is collected and rinsed with soft water. The lower EC pith now is fully dried in the yard before being transferred to the sieve machine for further treatment. The resulting pith is fed into a compaction machine, in which it is compressed into blocks. The blocks will now be shipped to be packaged before being distributed to customers. Coco peat briquettes, cocopeat tablets, coir pith block, and other items were obtained. Let's go into the specifics of the finances of the business.
Economics of The Business
Land and building:
- Land: Rs. 16,50,000
- Work shed: Rs. 4,50,000
- Total: Rs. 21,00,000
Machinery & Equipment:
- Grow Bag Machine: Rs. 27,70,000
- Vibrator, Conveyor, Screener: Rs. 8,80,000
- 5Kg Machine: Rs. 17,50,000
- Total: Rs. 62,80,000.
Project cost details in total:
- Fixed Capital: Rs. 83,80,000
- Working capital: Rs. 10,00,000
- Preliminary expenses: Rs. 1,00,000
- Total: Rs. 94,80,000.
Means of Finance:
- Own Investment: Rs. 5,69,000
- Term Loan: Rs. 58,66,000
- Working capital loan: Rs. 9,50,000
- Subsidy: Rs. 20,95,000
Sales Revenue:
- Coir pith price per unit: Rs. 11,000
- Production: 900 MT
- Tax: Rs. 11,25,000
Other expenses:
- Salaries/Wages: Rs. 12,36,000
- Repairs and Maintenance: Rs. 75,000
- Selling and Distribution Expenses: Rs. 2,52,00
- Administrative Expenses: Rs. 1,22,000.
The complete coir pith price of the business: Rs. 87,47,000.
Coir Pith Making Business Profit
- Profitability per annum: Rs. 22,78,000
- Depreciation: Rs. 8,47,000
- Income tax: Rs. 1,63,000
- Total: Rs. 10,10,000
- So, Net profit: Rs. 12,68,000.
Conclusion
Is the coir rope industry profitable? Coir yarns may fetch as much as 40 rupees per kilogramme. As a result of the various uses of coco fibre, a Coir business may be profitable provided all of its raw materials are effectively utilized. Which makes the profit that one can make as coir pith suppliers in India, quite substantial. If you wish to start your own business, follow the steps provided. That concludes the coir pith manufacturing business plan, thanks for reading.
FAQs: Coir Pith
Q. How are coir products made?
Ans. It's made from coconut husk using a technique known as defibring. This coir fibre is then brushed using metal combs to cleanse it and eliminate weak fibres. Brush bristles made of bristle coir fibre are utilized for both household and business purposes.
Q. Where does coconut coir come from?
Ans. The Philippines, areas of South America and the Caribbean, Indonesia, Sri Lanka, & Mexico, are the main producers of coir. Exceedingly fibrous coconut shells are peeled, shredded, and filtered into long fibres as well as pith.
Q. What is the purpose of coir pith?
Ans. Coir pith, a spongy substance that connects the coco fibre inside the shell, is discovering new uses. It is a great soil enhancer and is widely used as a soilless media in agriculture and horticulture.
Q. Is coir a biodegradable material?
Ans. Coir is a renewable, biodegradable material that is also safe for animals. Coir materials may be utilized in a variety of settings since there is no plastic involved to harm aquatic life.
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