p
p

pp




  
 




!"#

$ 
p% &'
p& & ( )



 (*+(*)
è This sample business plan was prepared by Mansurali , postgraduate student, PSG
Institute Of Management, Coimbatore. The purpose is to provide a format for a simple
business plan to test the feasibility of a business idea.

è The data sources such as Barani Pvt ltd and locations such as Negamam are fictitious and
do not represent any sources of data or actual locations. This information is provided
only to make the plan appear more realistic.

è The financial and other data used in this sample plan may or may not represent industry
practice and are provided to illustrate formats, not actual business operations.

è The financial and other data used in this sample plan may or may not represent industry
practice and are provided to illustrate formats, not actual business operations. This
generally represents a typical plan without the personal financial data and other forms
required in the usual loan package.

è Comments and suggestions for improvement are requested. Please send them to
Dr.R.Swaminathan,Knowledge Facilitator Ph.D. Department of
Management,Coimbatore. E-mail address is ¢


¢ 


.
Ñ
÷


 
 ,&-p

*.
è The purpose of this business plan is to support a request for 20 lakhs, five-year
bank loan to purchase equipment and inventory as part of the financing for a
start-up sole proprietorship, Barani coir pvt ltd.

è The business will be owned by Mr.Siva Entrepreneur and will be located at

Suncity at kondegoundan pudhur .The owner will provide a minimum of 20
lakhs in initial equity.

è The business will provide the brownfibre and coirpith based on the financial
and competitive analysis presented in this plan.

è It is anticipated that Barani coir pvt ltd will become firmly established in
Negamam within two years and will become known throughout pollachi in
five years with the potential of multiple locations.

Î
÷


 
 ,&- p

*.
è The Barani coir pvt ltd distinctive logo plus its slogan, ³Coir for Comfort´ will
provide a distinctive competitive edge.

è The entrepreneur holds an undergraduate business degree and an MBA from

Bharathiar university. Entrepreneur has also received a Diploma of Merit from
the Coir Board Training Institute,Bangalore

è The Barani coir pvt ltd distinctive logo, its reputation for fast service plus its
slogan, ³Coir for Comfort´ will provide a distinctive competitive edge.

è The entrepreneur holds an undergraduate business degree and an MBA from

the Bharrathiar University. Entrepreneur has also received a Diploma of Merit
from the Coir Board Training Institute,Bangalore.


÷
 

 
  &*()&(
è Coir is green business as much as it deals with an eco-friendly, biodegradable natural
fibre for a variety of end uses made out of a renewable resource - the coconut husk

è Coir fibre derived from coconut husks playing a dominant role in making layers for the
matresses.

è Coir fibre derived from coconut husks has become an increasingly popular growing
media component.

è It is all natural, organic, recyclable, and is considered a fully ³sustainable´ growing

media substrate.

è It is used as a complete, stand-alone substrate or as a component in growing media

blends.

/
÷
 

 

pp( 0-p(

pp( 
è Selling fibres and/or composites generates money that can be used to improve
the living conditions of the rural society and increase the personal revenue

è Strengthening the traditional fibre industry.

è Go Green. Place is not a concern for nurture.

è Effectively communicating, to potential customers, our position as a

differentiated provider of the highest quality product in the world.


÷
 

 

pp( 0-p(
-p(
è Expanding the local market towards national and possibly
international size.

è A self-sustaining full grown Natural Fibre and natural

fibre composite industry incorporating design,
manufacturing and trading of coir,composites,pithbricks
guarded by regulations.

â
÷
 

 
 (1&-p ).p&(ppp
(1&-
è Encourage demand for traditional coir products, for example, coir
fibre(Brown & White), yarn and pith bricks by improving quality and
enhancing appeal.
è Providing clean environment through eco-friendly operation.
è To create a habit of plantations and have greenly infrastructure
(through pithbricks)
è Increase in revenue by decrease in wastages.
KEYS TO SUCCESS
è Bringing the new facility to maximum production within three years of
operation.
è Increasing our profit margin with the use of improved technology in the
new facility.


*&(-*-+
%
 &
'
Currently, the global annual production of coir fiber is about 350,000 metric
tons (MT).

Yet, even in the world¶s top two producers, India and Sri Lanka.

which account for about 90% of global coir fiber production, combined, this
renewable resource is utilized.

The coir industry in India has had a strong export orientation since its early
days when the trade was dominated by European business enterprises.

From the level of the fibre and yarn exporter, India became an exporter of
value added goods. This has in turn brought about a major shift in the total
volume and value of exports. During the 1950s the average exports in terms of
volume declined to 73,200 MT per annum.

]
÷
 

 
 %
 &
'
è In the 1960s the volume exported declined to an average of 62,300 MT per
annum. It further declined to an average of 45,700 MT per annum in the 1070s and
26,700 MT in the 1980s.

è But in terms of value there was an upswing all through this period. From an
average annual export realization of Rs.80 million in 1950s it became Rs.120
million in 1960s, Rs.210 million in 1970s and Rs.300 million in 1980s.

è By the mid of 90s it was Rs.1,710 million which was gone up to Rs. 3,500 million
in 2003.

è In the initial years the export was mostly of coir yarn to European countries, for
agricultural purposes in hop and beans cultivation and as a raw - material for
industrial units engaged in the manufacture of coir products.

è Later it extends all over the world.

w
÷
 

 
 2

45564557455/45584559455:455;4535

33 ÷
 

 
  "<  )

Indian coir industry is an important cottage

industry contributing significantly to the economy of the
major coconut growing States and Union Territories, i.e.,
Kerala, Tamilnadu, Andhra Pradesh, Karnataka,
Maharashtra, Goa, Orissa, Assam, Andaman & Nicobar,
Lakshadweep, Pondicherry, etc. About .5.5 lakh persons get
employment, mostly part time, in this industry. The exports
from this industry are around Rs. 600 crores. Coconut husk
is the basic raw material for coir products.

34 ÷
 

 
  "< &
 )
Tamilnadu is the second largest producer of Coir fibre in the country. In the
brown coir fibre sector, Tamil nadu occupies the first place as being the single
largest producer of brown fibre contributing to about 65% of total production in
India. By using coir fibre, coir yarn, coir rope, coir mattings, curled coir and
rubberised coir mattresses, pillows etc. are being manufactured.

`

 




 
   


  
 


 
 



     !"

#
$ %& '$   (!)



    ")

%

    *

 +
$    !

&
' $   (

36 ÷
 

 
 *()&p
÷ (
÷ (
 
÷ (*&=*p

w ÷
 

 
 *()&)p*&(
è Coir bricks in 4kg and 5k, Coir pith are our exporting products.The global
agro-industry has been facing a serious crisis due to steady built up of
biological resistance resulting from an over application of chemical fertilizers
and pesticides. It is here that organic amendments become useful. While
synthetic fertilizers are generally more available, less expensive, and have
quicker results, they have played havoc with our ecosystem.

è Brown coir is harvested from fully ripened coconuts. It is thick, strong and has
high abrasion resistance. It is typically used in mats, brushes and sacking.
Mature brown coir fibres contain more lignin and less cellulose than fibres such
as flax and cotton and so are stronger but less flexible. They are made up of
small threads, each about 1 mm long and 10 to 20 micrometres in diameter.
è White coir fibres are harvested from the coconuts before they are ripe. These
fibres are white or light brown in color and are smoother and finer, but also
weaker. They are generally spun to make yarn that is used in mats or rope. sea
water and fresh water are both used in the production of white coir.

w

÷
 

 
 p(* 

As Tamilnadu is the largest

manufacturer of coir along with Kerala, major part
of raw materials comesfrommajor districts like
Coimbatore,Tirupur,Kollam,Alleppey(Kerala)
etc..,

38 ÷
 

 
 (* &( 
(* &( p'
è Crusher process (drill holes in coconut shells)

è Wetting process (make coconut shell softer for separation)

è Buster OR Retting process (separation of husks)

è Drying

è Feeding into curler

è Spinning or Curling (Automatic by curling machines)

wâ
÷
 

 
 (* &( 
>
 &p'
è `

è 

è `

  
('
è j
 
 
è 
   
è 
  
è 
 
è  


> &.( *('

è `  `  

(+*!36555#

3/(
w
÷
 

 
  *>*
 &p
&=(* )p&*. &3;/6
º NO. 45 of 1953

º ³An Act to provide for the establishment of a Board for the development of the
Coir Industry and for that purpose to levy a customs duty on coir fibre, coir
yarn and coir Products exported from India and for matters connected
therewith´.

º Control of export of coir fibre, coir yarn and coir products: No coir fibre, coir
yarn and coir products shall be exported otherwise than under a license issued
by or on behalf of the Board in the prescribed manner, and the provisions of the
Sea Customs Act. 1878 (VIII of 1878), shall have effect as if the provisions
made by this section had been made by notification issued under section 19 of
that Act.
º Payment of proceeds of cess to the Board- The proceeds of cess levied under
sub-section (1) of section13
º Penalties

º Offences by companies
3; ÷
 

 

*& 
p
  



_
  

è  
   
  !    

 
  "#"
è $   
 "
è %  

è j 
"
m

è   
   "
è &"'() *'
+*  +,&"-')# * +
è .  / 

Ñ ÷
 

 

*& 
*()&'

+  %
? %
 % $@
*
  %"    $ 
   $ 
 % $@"  
  $ 

Ñw
÷
 

 

*& 
 '

$ 0$ %
 " 
  
 $

@  
*(
(&( '
[ ) $""
" " 

 

[

$

 "$$


A  ""

[ ) $


[ &
@ 
ÑÑ
÷
 

 
  "
" "

º % $ <
º  " 
º 

p$
" "
º % $ <
º  " 
º 
º 
$"
46 ÷
 

 

*& p&* &.

º
" A 
 B
 <$"

" $"

º 

 "   %" ""

º$"
 $

?" "?
 $ 
$ 


47 ÷
 

 
p&* &. )

 & &( p

*.

We have clearly defined our target

markets and have differentiated ourselves by
offering a unique solution to our
customers' needs. The primary focus of our
marketing strategy must be to increase sales
and profitability business quickly.

4/ ÷
 

 
 (
&&-)

º Cost

º Organic product

º Recycled

º Elimination of disposal issues

º More effective between application times

48 ÷
 

 

*& .pp
p+(& 
<" "
3#p 

a) Natural Resources

b) Reputed Technical Institutions / Research Institutions

c) Strong Banking Network

d) Eco friendly Industries.

e) Industrial area and Industrial Estate.

49 ÷
 

 
 4#+
@""
V Lack of potential Entrepreneurs.

V Poor infrastructural facilities like.

1. The status of the existing roads is not good.
2. No cold storage.

V Geographically more than 20% of the district

comprises of hilly region.

V Lack of labours.
4: ÷
 

 
 6#(  "
[ Scope for agro Industries.
[ Scope for Tourism Industries.
[ Scope for Ecofreindly Industry.
[ Good scope for Horticulture and Bio
technology Industry.
[ A strong Banking network is available in the
district.
[ The presence of technical institutes, training
institutes and research Institutes.

4; ÷
 

 
 7#&
"
[ & "
 A
     " $ 
<

$ $ <
    
 " $

[ +
  

   
<
$
"

65 ÷
 

 
 p ppp

*.

V ÷ ¢¢¢ O  ¢ Barani coir pvt ltd will be owned by its

founder and president, SivaKumar. Mr. Siva will be an active
participant in management decisions.

V S
  ¢ 
 We will take assistance from ³MSME´ in order

to set up the coir industry provided with the background support the
amount loan of Rs. 20 lakh from your esteemed bank STATE BANK
OF INDIA,Negamam, the rest of the amount will be financed by
own in order to setup the business.

V V
  We will import machinery from Italy,Japan and russia in

order to manufacture the coir mats and other related products .

63
÷
 

 
 p& *& ) & p &(
>
 &p 36
@"

„
 

 „ p

 „p m „

 
 „p„

 
 
 

ÎÑ
÷
 

 
  
$
p
"!
 
$
p
"!C$#
C$#
 
"" $$

 $
" .
 .
 .

p
" 8:55555 :455555 35:55555
) $"p
" 7534555 6:/7555 7645555
( 5 5 5
&
"p
" 7534555 6:/7555 7645555
""

  49::555 7678555 87:5555
""

 D 7355D /655D 8555D
E""
< 339;555 347/555 3633555
p
"


@  
(E"" 39/555 39/555 39/555
)$
  345555 345555 345555
   " 95555 95555 95555
"
$ /8555 94555 ::555
* 475555 475555 475555
( 5 5 5
&
(
  E"" 3:75555 3;44555 4557555
 "
&
E" ;7:555 4747555 7798555
&) ;7:555 4747555 7798555
"E" 345555 345555 345555
&
E"$ 4:7755 949455 3674:55
&*(& /76855 3/98:55 6536455
 Fp
" 9;;D 3;46D 49;5D

) 345555 345555 345555


"?" 886855 38;8:55 6366455
66 ÷
 

 
 

$p
 *& *p .
3 <
4 .
6

pp&p
 """

" 3949555 44:9555 63:5555
p$@ ;;8855 3/:;:55 44/6455
 0"" F$   
 E """


$ < 3455555 35:5555 ;85555
)$
  345555 345555 345555
&
 """ 7576855 /598:55 8/36455

 &p

 
 6/55555 6/55555 6/55555
 0"" F$ /76855 3/98:55 6536455
&

%   " 7576855 /598:55 8/36455
67
÷
 

 
 "


 $
" .
 .
 .

*" *" *"
<3


 3/555 39/55 45555
<4 p " ;555 35555 33555
<6 p " ;555 35555 33555
<7 p " ;555 35555 33555
</ +
+@ 69/5 69/5 69/5
<8 +
+@ 69/5 69/5 69/5
<9 +
+@ 69/5 69/5 69/5
<: +
+@ 69/5 69/5 69/5
<; +
+@ 69/5 69/5 69/5
<35 +
+@ 69/5 69/5 69/5
<33 +
+@ 69/5 69/5 69/5
<34 +
+@ 69/5 69/5 69/5
<36 +
+@ 69/5 69/5 69/5
<37 +
+@ 69/5 69/5 69/5
<3/ +
+@ 69/5 69/5 69/5
<38 +
+@ 69/5 69/5 69/5
<39 +
+@ 69/5 69/5 69/5
<3: +
+@ 69/5 69/5 69/5
<3; +
+@ 69/5 69/5 69/5

<&
 ;:4/5 3569/5 35;4/5
.
<&
 339;555 347/555 3633555
6/
 
*
*
"
 
 
" ?" -
$ 
"?"
886855 5:;6 /;4/;7:
34 38;8:55 59;9 36/467;8
6366455 5934 4465:6:7
&
 739/9:4:
""" 6/55555
- 89/9:4:5
"
 
 
" ?" -
$ 
"?"
886855 5:4 /773/4
44 38;8:55 5894 337547;8
6366455 5//3 39486;64
&
 67359;7:
""" 6/55555
- :;45/4

** 45:6D

68
 
<%
$@ 
.
 
"?" 
 
5 6/55555 6/55555
3 886855 4:68755
4 38;8:55 336;855
6 6366455 3;;6855


<%
$@  "%?406<

6366455 68/
336;855 366


<%
$@  "4<
"
366
<"

69
÷
 

 
 *
  
<" "
!3#  
%  <
 "
&Fp p

.
" & p
" $

3 773985 3//8555 4:6;D
4 96/555 4585555 6/8:D
6 3379:55 48:5555 74:6D

!4# &
 
 &F&

.
"  & & $

3 3:;464 773985 74:7D
4 6;7/55 96/555 /689D
6 8:6785 3379:55 /;//D
6:
÷
 

 
 $" 

& " ?  

    "<

  " 
@ 
"  
 

  
% &   "  "  < ?
 $  
?  

   "<    " $" 
 "$ <  " $
" ?
" 
 
<

6; ÷