DETAILED PROJECT REPORT - Coirboard

1 DETAILED PROJECT REPORTC luster Location: POLLACHI, COIMBATORE DISTIRCT Submitted toCoir Board, Kochi Prepared by:ITCOT Consultancy and Services Ltd.(Joint venture of ICICI, IDBI, IFCI, SIPCOT, TIIC, SIDCO and BANKS)50 - A, GREAMS ROAD, CHENNAI - 600 006. Tel : (044) 42936800-02 FAX : 044 28293512 Web site: Email : No.#EXECUTIVE SUMMARY1##PREAMBLE61 CLUSTER PROFILE82 CLUSTER value chain MAPPING143 MARKET ASSESSMENT AND DEMAND ANALYSIS224 SWOT AND NEED GAP ANALYSIS255 PROFILE OF THE IMPLEMENTING AGENCY286 PROJECT CONCEPT AND STRATEGY FRAMEWORK307 PROJECT INTERVENTIONS (CORE SFURTI)338 SOFT INTERVENTIONS359 HARD INTERVENTIONS3810 PROJECT COST AND MEANS OF FINANCE (CORE SFURTI)4811 PLAN FOR CONVERGENCE OF INITIATIVES5012 ENHANCED PROJECT COST AND MEANS OF FINANCE5113 PROJECT TIMELINE5214 DETAILED BUSINESS PLAN5315 PROPOSED IMPLEMENTATION FRAMEWORK5716 EXPECTED IMPACT61# PROJECT Financials (Statements 1 to 13)EXECUTIVE of the clusterPollachi (South)

2 Coir of ClusterHeritage & Spread of the clusterThe cluster area is located in Coimbatoredistrict, extends over Pollachi South cluster spread includes 26 VillagePanchayats in Coimbatore. The Geographicalspread of the cluster measures about 20-25Km rangeThe existing range of coir products producedin the cluster are: Coir Fibre Coir Yarn Coir Pith Block Curled Coir Rope Rubberized of cluster & Type of unitsThe total number of coir units available in thecluster area is around 264 units of which 145 Nos. are engaged in Fibre Extraction, 13 in Yarn Spinning, 40 Nos. engagedin Curled Coir Rope Making, 1 No. engagedin Rubberized Coir and 65 Nos.

3 Engaged inmanufacturing of Pith Blocks. The totalnumber of beneficiaries estimated to bearound 5600 members which include thelabor force in the cluster. Based on thenumber of cluster beneficiaries, the cluster istypified as Heritage & Turnover of Coir products in the (in MT)Turnover(in Crores)Coir Fibre14581200 Curled Coir Rope409600 Coir Pith 6565000 1blockRubberized & Income levelDIRECT EMPLOYMENT:ActivityMaleFemaleTotalFibre Extraction43514501885 Yarn Spinning39169208 Curled Coir Rope40160200 Pith Block Making1958451040 Rubberized coir Manufacturing81220 Total71726363353 INDIRECT EMPLOYMENT:ActivityNo.

4 Of workersFibre Extraction1300 Yarn Spinning65 Curled Coir Rope50 Pith Block Making575 Rubberized coir Manufacturing5 Total1995 The income level for the labours in the clusteris for male workers and for female Concern areas of the cluster Apparent Stagnancy in Coir Fibre marketperceived. Coir Fibre units suffocate dueto the price rise in raw material (Husks)and stagnancy in Coir Fibre price. Huge Fibre production within the clusterand very limited value addition of fibrewithin the cluster resulting in distressselling of Coir Fibre to China. Diminishing concern for Quality due tothe present practice of supplying lowquality fibres to China (for making lowquality mattresses).

5 The individual investment potential ofcoir entrepreneurs in the region is not2exploited for elevation in the value chain ,due to the defensive attitude of theentrepreneurs, in spite of consistentefforts by the Coir Board and otherdevelopment agencies. Cluster s present production is limited toregular products such as Coir fibre, Coiryarn, 5 Kg. pith block and Curled of common initiatives among theentrepreneurs in the cluster so far, toventure into the production of valueadded finished products of high marketvalue. No common marketing platform,resulting in over dependence ofintermediaries/ agents /traders.

6 Huge market potential noticed for high-end value added products such as Tuftedmats, but lacking required productioninfrastructure which are beyondindividual investment Strategic Interventions Soft Interventions: Capacity Building Market PromotionHard Interventions (Common facilitycreation): Building for Common facility Common facilities PVC Tufted Geo Pith Block 650 Pith Grow cum Training Centre for Coir Yarn SpinningThematic Interventions:Participation in activities such as national andinternational level brand promotioncampaigns, New Media marketing, E-commerce initiatives etc., as DETAILED in theSFURTI implementation for Soft interventionsRs.

7 For Hard interventionsRs. PROJECT cost (including Agencies cost)Rs. of FinanceGrant under SFURTI scheme : Rs. lakhsSPV share : Rs. Intervention Scenario (Expected Impact) Reasonable value realization for qualityCoir Fibre within the cluster itself Multiplied investment, turnover andemployment in Coir Spinning activity Production of value added competitiveproducts and marketing throughstrengthened marketing linkages (bothdomestic and export) Increased value addition of Coir Fibre,resulting in enhanced income for Fibremanufacturers by minimum 20%,consequently increased income level tothe coir workers in Fibre extraction unitsby minimum 10%.

8 Increase in the overall turnover of thecluster by minimum 10%. Additional employment of minimum 300personnel, due to the establishment ofnew Coir yarn units under convergence. Additional investment to the tune of Crores for the establishment of Coiryarn units by entrepreneurs to meet theyarn requirement of CFC. Post interventions, the Cluster s exportearnings increase by 15% Emergence of specialized support serviceproviders and their active involvement inthe development process Strong linkages among the Clustermembers and actors in all levels of thevalue chain and an establishedCollaborative setup in place to undertakedevelopment initiatives & addresscommon issues.

9 Establishment of new units by convergingvarious schemes of State and CentralGovernments (such as Coir UdyamiYojana, PMEGP, UYEGP, etc.) resultingin additional investments in Coir sectorby the cluster members4 100% Coverage of cluster artisans undersocial security schemes Improved access to financial capital forcluster Management The cluster is proposed to be developed underSFURTI (Scheme of Fund for Regenerationof Traditional Industries). The Coir Board isthe Nodal agency (NA) and ITCOTC onsultancy and Services Limited is theTechnical Agency (TA) appointed by Coirboard . The SPV is formed with 52 members andregistered as Private Limited Company underCompanies Act 2013 in the name of ECOCOIR CLUSTER INDIA PRIVATELIMITED as per the Certificate ofIncorporation issued by Registrar ofCompanies, Chennai dated TheCIN of the company isU17226TZ2015 PTC021772.

10 Considering the knowledge base, experienceand managerial capacity of the lead SPVmembers, the SPV, ECO COIR CLUSTERINDIA PRIVATE LIMITED is proposed asthe Implementing Agency for this the SPV has 52 members and theSPV will be strengthened to manage theCluster activities in sustainable nature afterthe PROJECT implementation is over 5 PREAMBLEThe Coir industry has to its credit a tradition and heritage of centuries. Butdevelopment of Coir industry in India has begun in an organized way only in since this humble beginning, Coir products have been improving in quality,quantity and variety. For historical reasons, cultivation of coconuts and extraction ofCoir fibre and its further processing have taken deep roots in the state of Kerala.