Coir pith is a 100% organic and naturally growing multipurpose fibre. Coir is the outside layer of the husk that surrounds the shell of a coconut. It consists of divers which has traditionally been used for making ropes, doormats, carpets etc. Between these fibres, there’s this corky substance called a coir pith which has recently been discovered.
Until the recent year, coir pith was considered as any other by-product and segregated as wastes until in the recent years the scientists recognised its applications in horticulture, organic farming or fruits and vegetables etc.
No doubt coir pith has out to many applications but it’s use as blocks have increased the export potential of coir to USA, Australia etc who cannot manufacture these but need them for various industrial and domestic purposes. So it’s a good time to take advantage of this discovery
Market potential and uses
Coir pith which was considered as a waste, is now an emerging source of livelihood for the farmers in east Godavari, which is rich in coconut cultivation and from where the young entrepreneurs identified using coir pith blocks for putting them into application
Around 1,129 million coconuts produce in Andhra after being de-husked provide with husk equal to 722 million coconuts available for industrial purposes.
The coir pith blocks can derive a demand for the following applications:
The documents required to run a coir pith block making business are as follows :
The coir pith block making business requires and investor ₹25 lakhs to ₹60 lakhs
The profit estimate for a small scale unit can be made on the estimation of a plant based unit
|1. If, Tonnes of coir pith produced for one tonne of coir pith block are||1.09 tonnes|
|2. Gross returns will be||₹ 1,82,57,373 per year|
|3. AverageMarket price will be||₹6192 per ton|
|4. Net returns will be||₹ 21,15,399|
The demand for coir pith blocks is derived by targeting the following consumers :
Commercial nurseries and greenhouses : The coir pith blocks because of its water retention and fibrous quality absorbs water rapidly and holds it’s for longer period avoiding desiccation which is largely required by these nurseries to support their plants in today’s dynamic climate conditions.
Horticulture industry : Coir pith blocks reduce seedling development production cycles and is free from weeds and pathogens making it a desirable component when it comes to horticulture
Indian demand : The typical Indian consumer demands a bungalow with a large veranda which calls for a demand for coir pith blocks for gardening purposes and is also used in golf courses and nursery polybags
Governmental demand: Coir pith blocks acts as an immediate protective barrier when it comes to acting as a fro-fabric agent for controlling land slides or soil erosion.
Also read :
The raw material required in producing coir pith blocks are as follows :
Specifications for coir pith blocks
Area required :
The area required to set up a coir pith block making unit is a 3 acre land
However, The central coir board and the state government had offered a subsidy of ₹42 L and ₹12.5 L respectively for a unit requiring 2.5 hectares of land.
The machine required for sweating up a coir pith block business is as follows :
Since, coir pith block is still searching for its applications and requires a comparatively large investment and comes with a lot of exporting which inclines commission to distributors
One can expect a profit margin of 20%
The business model consists of 4 main constituents and the constituent make up for a coir pith block making business is as follows :
Value proposition : The unique selling point and the value of a coir pith block making business lies in the fact that it can absorb water 5-6 times more of its own weight, it can last up to 4 years which
Target consumers : This coir pith block making business targets the nurseries, green houses, horticulture industry, government, outdoor playing courses, gardener’s etc
Competitor review : The coir pith industry is still an emerging one so it doesn’t have major competitors but competitors from basic coir exporters and traders
Marketing strategy : The water retention, moisture holding, anti-bacterial, high oxidation qualities of Coir pith has created a demand for itself in the global space like USA without any marketing strategy.
But it’s applications are still unknown to many so highlighting them and issuing print ads and promoting eco friendly perks of using coir pith blocks is likely to be the marketing strategy to attract many commercial consumers
A recently discovered fibre witch still emerging applications has a tremendous scope of growth in the Indian market :
If you are still thinking of reasons to get into this coir pith block making business we have exclusively have them for you :
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