RUBBERISED COIR SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS
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1 RUBBERISED COIR CONTENTS SECTION I PRODUCT CHARACTERISTICS SECTION II PRODUCT APPLICATIONS SECTION III INDIAN MANUFACTURERS SECTION IV IMPORT/EXPORT LEVEL SECTION V PRICE SECTION VI INDIAN DEMAND SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY SECTION IX GLOBAL SCENARIO SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS SECTION XI SWOT ANALYSIS SECTION XII FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATIONS 1
2 SECTION - I PRODUCT CHARACTERISTICS Rubberised coir is a versatile product used largely as a less expensive substitute cushioning material for foam rubber in furniture, upholstry, mattresses. Rubberised coir is made from curled fibre, which should be free from dust. The coir is made into endless fleece which is conveyed to the first set of rubber latex spray gums. Thickness of sheets are built by fixing multilayers fleeces and spraying is repeated to get a good bonding of layers. Then the sheet is hydraulically pressed and vulcanised to set the fibres. 2
3 SECTION - II PRODUCT APPLICATIONS The mats, mattings and rugs made of rubberised coir are popular household items because of the its durability and easy maintenance. Rubberised coir is a versatile product used largely as a less-expensive substitute cushioning material for foam rubber in furniture, upholstry, mattresses etc. Rubberised coir has a good elasticity and springiness. Rubberised coir also finds use in packaging, sound insulation and air filtration. 3
4 SECTION - III INDIAN MANUFACTURERS There are reported to be more than 150 units producing rubberised coir in Kerala, Karnataka and Tamil Nadu.. Important manufacturers include the following * Kurlon Ltd., Bangalore * Rice Park P.B.No.4, Chelakkara Thrissur, Kerala * Eastern Mattresses Pvt. Ltd., G-307, Main Avenue, Panampilly Nagar, Cochin * Kerala State Rubber Co-operative Ltd., RUBCO Sales International Ltd. K.V.R. Tower, 4th Floor, South Bazar, Kannur * Sherlon Rubberised Coir Mattresses Phase II, Industrial Development Plot, Parassinikadavu Kannur Dist., Kerala * Rubco Huat Woods (P) Ltd., Rubco Sales International Ltd. Regd. Office : K.V.R. Towers, 4th Floor, South Bazar Kannur, Kerala * All India Rubberised Coir Manufacturer's Association Bharat Motors Industrial Estate Petta, Thirunelveli 4
5 SECTION - IV IMPORT EXPORT LEVEL Import level : The product is not presently imported. Export level : Around 324 tonnes per annum 5
6 SECTION - V PRICE Pillows, cushions, passenger seats : Rs.70 per kg Matress of common sizes : Rs.835 per unit Taxes and duties : Extra as applicable 6
7 SECTION VI INDIAN DEMAND With the present growth of furniture industry and the high cost of foam rubber, there is a tremendous scope for the use of rubberised coir as a total substitute for foam rubber. For mattresses and in upholstry, it can be used in combination with foam rubber. The total production of coir around 3 lakh tonnes valued at Ra.1000 crores.there is a huge potential to expand coir production because only 28% of the raw material is available for production. Coir geotextiles have been used by Konkan Railways on the rail embankments. They have been used in some of the Kerala districts road embankments in Idduki, bunds in Kuttanad, irrigation canals in Muvatuppuzha and for hardening the marshy land in the NH-bypass in Kozhikode. Driving factors for demand The present growth of furniture industry and the high cost of foam rubber For mattresses and in upholstry, it can be used in combination with foam rubber. 7
8 SECTION - VII BROAD OUTLINE OF MANUFACTURING PROCESS The coir twisted ropes is treated with open steam. By this process, the fibre is moisturised by the steam and heated. This is done, so that the fibre acquires the permanent curved shape. The steam treated fibre is stored for a fortnight to dry up the moisturised fibre. The completely dried and tempered fibre ropes are fed into untwisting machine to untwist the rope and this machine throws out the fibre in carded firms. This untwisted fibre is now fed into sheet machine. This machine further untwists the fibre and gives out on the conveyor belts, the fibre in continuous sheet forms of required width and density. The sheet is now sprayed with the rubber latex and chemicals such as sulphur, sodium silico fluoride, Diphenyl Guanidine, ZMBT, ZDC and Zinc oxide. The conveyor belt passes through a drying chamber, when the water part of the rubber latex evaporates and the fibre gets bonded with rubber. The sheet comes out on the other end of the drying chamber. One side sprayed sheet is turned to another following conveyor belt, which further enters into the drying chamber. Before entering into the chamber, the unsprayed side of the sheet is sprayed and dried up in dryer chamber, which is a repeat process. A continuous sheet of required width and completely bonded with rubber comes out from the sheet machine. Rubberised coir formulation:- Basis : for 100 kgs DRC (dry rubber contents) or 167 kg rubber latex. Chemicals % Chalk powder 12 Zinc oxide 3 Sulphur 2 Accinex B.Rods or HSL beads 1 Accinex ZDC or vulkacit LDA 1 Accicure ZMBT or vulkacit 2M 5 Dispersal F or Balloid Td 4% of total chemical weight Emulvin T 1.5 Calsolune oil 5 8
9 Source of technology * The Rubber Board (Ministry of Commerce, Government of India) Department of Processing and Product Development, Kottayam , Kerala. Major plant and machinery and suppliers Name of the equipment Boiler Name of the company Cethar Vessels Ltd., No.4, Dindigul High Road, Trichy Firetech Boilers Pvt. Ltd. No.211, 2nd Cross, 38th Main, B.T.M. Layout 2nd Stage, Bangalore-68 Dryer The Anup Engineering Ltd., Behind 66 KV Electric Sub Station Odhav Road, Ahmedabad ATRE Thermal Products Pvt. Ltd., Pushpa Heights, 1st Floor, Bibwewadi Corner, Pune Conveyor Texel Fabricators Pvt. Ltd., 335, Sidco Industrial Estate, Ambattur, Chennai , Tamil Nadu Trans Asian Trades and Services Bankers India Bank W-100, Second Avenue Anna Nagar, Chennai
10 SECTION - VIII RAW MATERIAL REQUIREMENTS, UTILITY AND AVAILABILITY The major raw materials required are coir fibre and compounded latex ready for spraying. Coir fibre is extracted from coconut flex, the outer fleshy part of the coconut. It is available abundantly, throughout the coastal parts in India particularly in Kerala State. Rubber is mainly of two finds, natural and synthetic rubber. Natural rubber is a latex of the rubber plant, which is cultivated in South India on large scale, particularly in Kerala. The rubber latex collected from the rubber plants is very dilute and roughly contains only 25% solid rubber and rest is water. This latex is concentrated by centrifugation, electrolysis and several other methods. The former method is most commonly used and concentration of latex upto 60% can be obtained by this method. Rubber production In tonnes in million tonnes (Est.) Year 10
11 SECTION IX GLOBAL SCENARIO Since India, Sri Lanka and Philippines have the large coconut plantation in the world, the focus of the rubberised coir industry is only in the regions The export thrust for the product has to come from India, in view of the several advantages that the country has in the field. 11
12 SECTION X DISCUSSIONS ON ECONOMIC CAPACITY, PROJECT COST AND PROFITABILITY PROJECTIONS Economic capacity Matresses 2 inches 937 unit 3 inches unit 4 inches unit Pillow 90 tonnes per year Project cost Rs.262 lakhs Assessment of project cost 1. Land S.No. Description Cost Rs.in lakhs 1.1 Cost of land of one acre at Rs.5.5 lakh per acre Cost of levelling, laying internal roads/fencing and compound wall
13 Subtotal Building S.No. Description Cost Rs.in lakhs 2.1 Factory building of area 640 sq.m. at Rs.3200/sq.m Non-factory building of area 100 sq.m.at 4.5 Rs.4500/sq.m. Subtotal Cost of Plant & Machinery S.No. Description Cost Rs.in lakhs 3.1 Cost of basic plant and machinery Instrumentation and control Pipelines and valves Structurals for erection 4.75 Subtotal Octroi, excise duty, sales tax, etc.at 12% Packaging and insurance charges (2%) Transportation charges (2%) Machinery stores and spares (2%) Foundation charges (2%) Installation charges (2%) 2.33 Total cost of plant and Machinery Technical know-how fees Rs.4 lakhs 5. Miscellaneous fixed assets S.No. Description Cost Rs.in lakhs 5.1. Electrification 4 13
14 5.2. Steam boiler and auxillaries Water storage tank, borewell etc Fuel storage tank Laboratory equipment Office machinery & equipment Material handling equipment, packaging machinery, 2.0 weigh balance, etc Diesel generator Effluent treatment 1.5 Total Preliminary & Pre-operative expenses: S.No. Description Cost Rs.in lakhs 6.1. Preliminary expenses Pre-operative expenses: Establishment Rent rates and taxes Travelling expenses Interest and commitment charges on borrowings Insurance during construction period Other preoperative expenses and deposits Interest on deferred payment - Total Provision for contingency Rs lakhs 8. Working capital margin Rs lakhs 9. Total project cost Rs.262 lakhs 10. Means of finance (Rs. in lakhs) 14
15 Promoter's contribution 105 Term loan from financing institutions 157 Total project cost Financial statements Cost of production A Variable cost Rs. in lakhs Raw material and utilities Spares and maintenance 8.52 Selling expenses Total variable cost (A) B Fixed cost Salaries and wages 9 Interest on term loan and working capital loan Depreciation Administrative expenses Total fixed cost (B) C. Total cost of production (A+B) D. Selling price per kg. (in Rupees) 15
16 Matresses Rs.835 per unit Pillows Rs.70 per kg E. Annual sales turnover F. Net profit before tax (E-C) G. Breakeven point in % 55 SECTION XI SWOT ANALYSIS Strength Weakness Opportunity Threat Large availability of the raw material Lack of R&D thrust Export in view of the eco friendly nature of the product Competition between local units 16
17 SECTION XII FACTORS INFLUENCING THE POSITION FOR A NEW INDUSTRY AND RECOMMENDATION Rubberised coir and coir geotextiles possess tremendous potential to be foreign exchange earners for the country and require added focus. Even in domestic sales,40% has been realised from rubberised coir through the value addition in the item. Exports of coir geotextiles make up only two percent of the total international market. If an awareness campaign is created, an increase in exports could be achieved by atleast three to four times. Its usage and application has an environment friendly approach, which is likely to give coir a distinct edge over geosynthetic textiles. However, the coir faces challenge from the powerful geosynthetic lobby abroad. 17
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