Coir Pith/coco peat Blocks Making Business

Overview

COIR PITH BLOCK MAKING BUSINESS

OVERVIEW

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.

coir pith coco peat blocks making business
 
   

   I.        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.

Uses

The coir pith blocks can derive a demand for the following applications:

·       As a potting mix, with the required fertilisers and nutrients according to the type of plant to be grown

·       For mushroom growers

·       For generating seeds

·       As a soil supplement and prevents regular watering

·       For tissue cultured plant

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II.        License required

The documents required to run a coir pith block making business are as follows :

·       Registration under the Coir industry ( registration and licensing ) rules 1958

·       Udyog Aadhar MSME registration

·       A certificate regarding financial status from a nationalised/scheduled bank

·       PAN and Aadhar card 

III.        Investment required

The coir pith block making business requires and investor ₹25 lakhs to ₹60 lakhs

IV.        Profits made

The profit estimate for a small scale unit can be made on the estimation of a plant based unit

CONTENT AMOUNT  
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  


V.        
Target consumers

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. 

VI.        Raw material required :

The raw material required in producing coir pith blocks are as follows :

·       Coir pith

·       Water and electricity supply

·       Packaging material 

Specifications for coir pith blocks

·       Weight 5kg +/- 0.3 kgs

·       Size 30 x 30 x 13 cm

·       Moisture content less than 20%

·       Compression ratio 5:1

·       Expanded volume 13 to 14 litres per kg

·       Electricity conductivity less that 0.5 mS/cm

·       Loadability 20 pallets / 22 MT in one 40 feet HC container

·       Packing 210-220 blocks per pallet

VII.        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.

VIII.        Machine required

The machine required for sweating up a coir pith block business is as follows :

·       Coir pith block making machine

·       Screener

·       Compressor

IX.        Profit margin

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% 

X.        Business model and growth

The business model consists of 4 main constituents and the constituent make up for a coir pith block making business is as follows :

A. 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

·       has increased its demand extensively in the horticulture industry,

·       And it’s moisture providing abilities in plants has increased its demand in countries like USA, UK, Netherlands, Korea, Japan and gulf  

B.   Target consumers : This coir pith block making business targets the nurseries, green houses, horticulture industry, government, outdoor playing courses, gardener’s etc

C.  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

D. 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

Growth

A recently discovered fibre witch still emerging applications has a tremendous scope of growth in the Indian market :

·       Firstly, because of the quality coir pith available online India the coir pith export has contributed ₹906 crore to the Indian exports in FY 2016-2017, so its fruitful to become a part of this business

·       Secondly, the applications of coir pith blocks are still unknown to many people so within a span of 2-3 years it’s increased awareness is likely to support the environmental-saving policies taken up by every commercial space

XI.        Final words

If you are still thinking of reasons to get into this coir pith block making business we have exclusively have them for you :

·       Firstly, it requires minimal investment and handful of manpower and the consumers of these products are larger industries like horticulture and nurseries, which are as emerging as coir is

·       Secondly, the applications of coir pith block are still in the discovery stage and with the eco friendly perk it provides it will be used by my both residential and commercial purposes as a part of their routines operations

·       Lastly, the export of coir pith blocks opens gates for your business to the global market like USA, UK which require Coir pith blocks in tremendous quality.

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