PVC/LATEX BACKED COIR TUFTED DOOR MATS KSIDC

PROJECT PROFILE


ON


PVC/LATEX BACKED COIR TUFTED DOOR MATS






Prepared by:


Kerala State Industrial Development Corporation





September 2012
PVC/LATEX BACKED COIR TUFTED DOOR MATS KSIDC
PROJECT PROFILE FOR PVC/ LATEX BACKED COIR TUFTED DOOR MATS
MANUFACTURING UNIT

Summary:

1 Project

PVC/Latex backed Coir tufted Door
Mats

2 Proposed Location

KSIDCs Industrial Growth Centre,
Pallipuram, Cherthala, Alappuzha
District.
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

2 acres
8 Man Power

20 Nos.
9 PBT (At optimum capacity)

Rs.135 lakhs

10 PAT

Rs.110 lakhs



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 KSIDCs 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.

PVC/LATEX BACKED COIR TUFTED DOOR MATS KSIDC
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 1970s 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 Indias 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.
PVC/LATEX BACKED COIR TUFTED DOOR MATS KSIDC

Technical Aspects:

1. Installed Capacity 4 lakhs Square Meter per annum
2. Location KSIDCs 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

PVC/LATEX BACKED COIR TUFTED DOOR MATS KSIDC
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 a very sophisticated
equipment which requires specialized scientific
knowledge to understand its functioning. However
for laymans understanding, it can be described as
a set of machines of length about 25 to 30 mts
over which a Teflon belt is moving (0.78
mtr/hour) just like a conveyor. Above the
Teflon belt, equipments for tufting coir to melted
PVC compound/Latex Compound and blades and
knives for shaping the finished products are
arranged.
Stage IV : Quality control & Finishing works:-
The finished output is then subject to quality
check on random basis using spring balance to
ensure 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
PVC/LATEX BACKED COIR TUFTED DOOR MATS KSIDC
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 15.00
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 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.
PVC/LATEX BACKED COIR TUFTED DOOR MATS KSIDC

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

For further details please contact Kerala State Industrial Development Corporation Ltd.


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.