PROJECT PROFILE FOR COIR FIBER/DUST MOULDING UNIT

PRODUCT : MANUFACTURING OF SCULPTURES

WITH COIR DUST&BIT FIBER

PRODUCTION CAPACITY (P.A)

(100% CAPACITY) : 28800 NOS

VALUE : RS.57.60LAKHS

MONTH & YEAR OF PREPARATION : JUNE 2018

PREPARED BY : COIR BOARD, MINISTRY OF MSME,

GOVT OF INDIA

• INTRODUCTION

Thermoset polyesters, those used in compression molding, are formed from linear,
unsaturated, thermoplastic polyesters which are cross-linked during the cure reaction.
Composite coir articles can be manufactured from polyester and coir fibre/pith. The
composites so produced have high strength, water resistance, durability and transparency.
For curing such unsaturated polyester resins with fibre, organic peroxides such as MEKP
(methyl ethyl ketone peroxide)is used. When the peroxide is mixed with the resin, it
decomposes to generate free radicals, which initiate the curing reaction. Hardeners in these
systems are commonly called catalysts. The common catalyst for polyester resin is cobalt
naphthenate.

The coir reinforcement used are either coir bit fibres or coir pith. The reinforcement
should be dried properly before composite manufacturing. The presence of moisture in the
material leads to the formation of pinholes in the products. The coir bit fibres and coir pith
material is sieved in a standard IS 100 mesh sieve to remove the foreign materials present and to

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ensure a uniform particle size distribution and properly dried before the moulding. 20-25%
coir can be incorporated as the reinforcement.

Mouldreleasing agents are used for the easy release of the product from the mould. If
the releasing agents are not applied, the product will stick on to the mould. Polishing wax is
found to be the most suitable release agent in the production of coir poly ester moulding.

The moulds can be of fibre glass, plaster of Paris, glass or metal moulds. Among the
available mould materials, fibre glass moulds are cost effective for the production of poly
ester mouldings. Hundreds of products can be produced from one mould. The finish of the
product depends upon the finish of the mould. Single piece moulds are used for one side
finished products. Multiple piece moulds are required for three dimensional products.The
composites so produced have high strength, water resistance, durability and transparency.
The production process does not require external pressure, temperature or heavy
equipment. No skilled labour is required for the production. The process could
advantageous to women entrepreneurs without a huge investment.

PROCESS OF MANUFACTURE

Steps involved in the production of coir poly ester mouldings are.

1. Apply suitable release agent to the mould.

2. Weigh the required quantity of resin in to a container
3. Mix the cross linking initiator and catalyst to the resin with continuous stirring.
4. Mix the required quantity of coir reinforcement to the resin with constant stirring
5. Pour the mixture in to the prepared mould.
6. Allow the material to set
7. Eject the product from the mould

The cross linking reaction is an exothermic reaction. As the reaction proceeds the
viscosity of the mix increases and starts setting. The product can be ejected within 15-20

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min of reaction and the product is allowed to set completely. On completion of the reaction
the temperature lowers to room temperature.

Pigments can be incorporated in to the resin for obtaining coloured products. The
pigments should be compatible with the poly ester resin. Painting can also be done to the
product for getting attractive designs and ornamentation of the product. Multiple coloured
products can be produced depending on the design of the mould.

BASIS AND PRESUMTIONS

• The Project Profile is based on 8 working hours for1shift in a day

and 300 days in a year and the Break Even efficiency has been
calculated on 70%, 80%, 90%, 90% and 100% capacity utilization.

• The rate of interest both for fixed asset and working capital have
been taken as 12.5% p.a.

• TECHNICAL ASPECTS

Installed Production capacity per year : 28800 nos of sculptures of

various images depends

upon the demand

Number of Shift per day : 1

Working days p.a : 300 days

Capacity Utilization

-First year : 70%

-Second year : 80%

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 -Third year : 90%

-Fourth year : 90%

-Fifth year : 100%

Rate of Average Sales Realization : Rs. 200 per sculpture

Rate of Average cost of raw material : Rs.60 per
sculpture

Interest on term Loan : 12.50%

Interest on working capital : 12.50%

Manpower requirement

Supervisor : 1

Unskilled worker : 20

Total HP required : 5 HP

• FINANCIAL ASPECTS

i) Cost of Project

Amount

• Land : Lease/owned

• Building : Rs. 300000/-

• Machinery &Equipments : Rs.1174000/-

• Working Capital : Rs.426000/-

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Total : Rs. 1900000/-
----------------------

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 Sl. Description of machines &equipments Amount
No (Rs)
1 Fiber cutting machine 1 Nos
2 Mould 20 Nos
3 Weighing balance 2 Nos
4 Table & other accessories
Total 1900000.00

ii) Means of Finance

• Promoters Capital 5% : Rs.95000/-

• Bank Term loan 95% : Rs.1400000/-

• WC Loan from Bank 95% : Rs.405000/-

-------------------

Total : Rs.1900000/-
----------------------

DETAILS OF THE PROFITABILITY OF THE PROJECT

Rs.in Lakhs
Years 1 2 3 4 5

Installed Production 28800 28800 28800 28800 28800

capacity per year
Number of shift/day 1 1 1 1 1

Working days per 300 300 300 300 300

annum
Capacity utilization 70% 80% 90% 90% 100%

Annual production nos 20160 23040 25920 25920 28800

quantity
Annual Sales Rs. 200 40.32 46.08 51.84 51.84 57.60

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Realization

Cost of Production
Cost of raw material Rs. 60 12.10 13.82 15.55 15.55 17.28

Power cost 0.26 0.29 0.33 0.33 0.37

Wages & salary 18.06 20.64 23.22 23.22 25.80

Cost of Production 30.41 34.76 39.10 39.10 43.45

Gross Profit 9.91 11.32 12.74 12.74 14.15

Administrative & selling 2.00% 0.81 0.92 1.04 1.04 1.15
expenses
Interest on Term Loan 1.45 1.56 1.30 0.45 0.19

Interest on Working 0.51 0.51 0.51 0.51 0.51

capital
Depreciation of 1.17 1.17 1.17 1.17 1.17
machinery
Depreciation of Building 0.15 0.15 0.15 0.15 0.15

Total 4.09 4.31 4.17 3.32 3.17

Net Profit 5.82 7.01 8.57 9.42 10.98

ESTIMATION OF BREAK EVEN POINT

Rs in Lakhs

Particulars 1 2 3 4 5
70% 80% 90% 90% 100%

Break-even point 68% 62% 51% 37% 31%

Break even Production 13641 14239 13320 9714 8833

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• DEBT SERVICE COVERAGE RATIO

Rs in Lakhs

Particulars 1 2 3 4 5
Capacity Utilization 70% 80% 90% 90% 100%

DSCR 3.40 2.70 3.29 4.41 5.49

Average DSCR 3.86

DSCR weighted average 3.70

• WORKING CAPITAL REQUIREMENTS

Rs in Lakhs

Particulars 1 2 3 4 5
70% 80% 90% 90% 100%

Variable Cost 30.41 34.76 39.10 39.10 43.45

Fixed Cost 4.09 4.31 4.17 3.32 3.17

Working capital gap 4.26 4.88 5.50 5.53 6.17