COCONUT SHELL POWDER
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- Alfred Blaise Walsh
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1 COCONUT SHELL POWDER A. INTRODUCTION Coconut shell powder has various uses. The shell powder is manufactured from the coconut shell which is obtained as by-product from coconut oil industries and individual households. The powder has various uses as a filler in synthetic resin glues, filler and extender in phenolic moulding powders, mosquito repellent coils, mastic adhesives, resin casting, bituminous products etc. The coconut shells are available from all coconut producing States in India namely Kerala, Tamilnadu, Karnataka and Andhra Pradesh, which contribute more than 90% of the production in the country. B. PRODUCT SPECIFICATION & USES There is no specification prescribed by Bureau of Indian standards for coconut shell powder. This is manufactured as per customers requirement and the particle size varies depending upon its end uses in different industries. The products are manufactured from a) 80 mesh to 100 mesh and b) 200 mesh to 300 mesh. The following specification is normally followed. Appearance : Clear light brown free flowing powder Moisture : Maximum 10% Apparent Density : 0.6 to 0.7 gm/cc Ash : Shall not exceed 1.5% Sieve analysis : Amount retained in a 200 mesh B.S. Sieve shall not exceed 0.1% Microns Mixed Particle size : Shall not exceed 6 microns and 10 microns. of fraction passing a 200 mesh sieve 1
2 C. MARKET POTENTIAL Coconut shell powder finds its applications in manufacturing Mosquito coils as a burning medium. The size of the mosquito repellent market in India at present is about Rs 1600 crores per annum and it growing at the rate of 15% per annum. About 40% is held by Coil products. Coconut shell powder is used as thermoset moulding powder such as phenol formaldehyde moulding powder or bakelite and synthetic resin glues. Coconut shell powder of a particle size of mesh is suitable as a filler in the thermoset moulding powder and powder of mesh size is used for synthetic resin glues. The demand in this sector is always on the increase. D. TECHNICAL ASPECTS 1. Installed capacity The installed capacity of the unit proposed is 250 kgs of coconut shell powder per hour. At this rate the annual installed capacity works out to 600 MT for single shift working of 8 hours per day for 300 days in a year. About 50% of this 300 MT is proposed as Coconut shell powder of mesh and balance 50% is proposed as coconut shell powder of mesh. 2. Plant & Machinery The following items of plant & machinery are required. Sl Item Value Rs. a. Impact Pulveriser Heavy duty 42 chamber size 1050 mm with 5,00,000 Hammers whizer classifier to obtain fire powder cyclone dust collector with 120 HP motor capacity 250 to 275 kgs per hour b. Beater Box 25 x 12 with feeding hopper to get desired size with 40, HP motor c. Rotary sieving machine 8 x 2.5 with 3 HP motor 80,000 d. Electricals, Starters, Switches, Slide Rails, foundation bolts 2,80,000 motor V belts, Cotton dust bags & balloons, Dust collector agents & installation. Total 9,0,00,000,000 2
3 3. Manufacturing Process Collection /Procurement of coconut shells (fully matured coconuts) Removing pithy matter remnants form shell by hand Breaking down shell into pieces of 2.5 sq cm. size by using Beater Box (Shell breaker) Broken shells are fed into impact pulveriser which converts shell into powder Feeding ground coconut shell powder to centrifugal sieve (Rotary sieving machine) to obtain powder of required mesh. Reject will be again pulverised by recycling Packing pulverised powder of different mesh in HDPE woven sacks 4. Raw Materials Qty. Rate Value (Rs.) Coconut shell (10% waste considered) 660 MT Rs ,40,000 HDPE woven sacks bags Rs ,000 At 100% utilization Total 27,24,000, Land & Building The Building requirement is about 2000 sq. ft. for factory shed and 1000 sq. ft. for storage area and office. A shed of 3000 sq. ft. can be hired at a monthly rent Rs.24,000. The advance will be in the range of Rs.2.40 lakhs. 6. Utilities Power: The total power requirement of the unit will be about 140 HP. Water: Water is not required for process. Water for human consumption is estimated 1000 litres per day. Pollution: The process does not discharge any effluents. 3
4 Man power: Category Nos Monthly Total Manager Assistant Watch & Ward Supervisor Skilled workers Unskilled workers Total Add : 20% benefits 8400 Total Total salary per annum (Rs. lakhs) Rs.6.05 lakhs 7. Implementation Schedule As the machineries are available easily, if financing arrangements are made, the project can be implemented in 3 months time. 8. ASSUMPTIONS Installed capacity is 600 MT of coconut shell powder per annum Selling price is assumed at Rs per MT. Cost of materials is estimated at Rs.4539 per MT. Rs lakhs p.a Power charge is estimated at the current rate which works out to Rs lakhs per annum. Wages & Salaries is estimated at Rs.6.05 lakhs per annum. Repairs & Maintenance is estimated at Rs per month. 4
5 Depreciation is calculated on WDV method Selling, General & Adm. expenses is Rs per month. Interest on Term Loan & working capital borrowings are estimated at 12% p.a Income tax is provided at 33.99% on taxable income. LIST OF MACHINERY SUPPLIERS 1. Ohm Sakthi Engineering Industries, 52 Kapagambal Nagger-Third Street Thiruvanmiyur, Chennai Naveen chandra & Co., 284, Linghi chetty Street, Chennai Kaps Engineers, 831, G. I. D. C. Makarpur, Vadodara Pilots India, Kalletumkara , Irinjalakuda Dist. Kerala 5. Universal Enterprises, 99/77/1B Sri Rampura, H. O. Court Road, Mysore LIST OF RAW MATERIAL SUPPLIERS 1. Several coconut oil manufacturers located in Kangeyam, Erode District. 2. Several coconut shell suppliers in Pollachi area. 5
6 HDPE WOVEN SACKS All major HDPE bag suppliers in Chennai as listed in Chennai yellow page. FINANCIAL ASPECTS 1. COST OF PROJECT Rs.lakhs Land and Building (Advance) 2.40 Plant & Machinery 9.00 Other Misc. assets 0.50 Pre-Operative expenses 1.00 Margin for WC 2.04 Total MEANS OF FINANCE Capital 8.19 Term Loan 6.75 Total COST OF PRODUCTION & PROFITABILITY STATEMENTS Years Installed Capacity (MT) Utilisation 60% 70% 80% Production/Sales (MT) Selling Price Rs.11,500 per MT Sales Value Raw Materials (including packing materials) Power Wages & Salaries Repairs & Maintenance Depreciation Cost of Production Selling & Admin. expenses Interest on Term Loan Interest on Working Capital Total Profit Before Tax
7 Provision for tax Profit After Tax Add: Depreciation Cash Accruals WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Raw Materials % Finished goods % Debtors % Expenses % PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax % Sales Profit before Interest and Tax % Total Investment Profit after Tax % Promoters Capital BREAK EVEN LEVEL Fixed Cost (FC): Rs.lakhs Wages & Salaries 6.67 Repairs & Maintenance 1.32 Depreciation 0.98 Admin. & General expenses 6.62 Interest on TL Profit Before Tax (P) 6.48 BEP = FC x x 80 x 100 FC +P % of installed capacity 7
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