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BUSINESS PLAN DISHA PROJECT
NATIONAL INNOVATION FOUNDATION (NIF)
Mr. R. JEYASEELAN
BUSINESS PLAN DISHA PROJECT
Team Coordinator: Surabhi Rastogi Members : Samrat Ghosh Avijit Sarkar Vinny Bedi
Institute of Finance and International Management
#8P & 9P, KIADB Industrial Area, 2nd Phase Electronics City, Bangalore – 560 100, Karnataka
BUSINESS PLAN DISHA PROJECT
This project has been written in simple and lucid style for the better understanding and appreciation of study. It has been compiled systematically to enable sure one to evaluate detail of the project. Needless to say we are deeply indebted to our innovator Mr. R. Jeyaseelan for providing us the required information and timely help during the course of this investigatory work. We are very much grateful to NIF for giving us an opportunity to develop this innovation and be a part of this business plan competition. This acknowledgement would fall short of completion if we fail to mention Mr. P Vivekanandan, SEVA. We would like to express our deep sense of gratitude for his constant and cheerful encouragement. No words can crystallize in expressing our respect and gratitude towards our parents and siblings.
Business Description 2.1.3 Functional and Operational Performance 4.2 Developing the innovation 1.1.3 Recognition and Awards 1.6 Technical Specification 16 20 20 20 20 21 21 22 23 4 .5 Target Market 1. Evaluation Document 4.2 Salient features of the machine.1 About the Business 2.7 Entry Barrier 9 9 11 12 12 12 13 13 2. Executive Summary 1.1 Innovators Detail 1.4 The Product 1.1 General Description of Innovation. 4.3 Product Description 2.1.4 Working Principle 4. 4.5 Construction 4.6 Price 1.1.4 Features and Benefits 14 14 14 14 15 184.108.40.206 Business idea 2.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT CONTENTS Mission Objective Positioning Statement 8 8 8 1.1 The Product and Technology 4. Scouting Document 4.
6 Cost Benefit Analysis 6.18 Rights on Know-How and related Matter 35 35 36 36 37 38 40 41 42 43 44 45 47 47 47 48 49 50 50 5 .3.7 Sales Strategy 5.9 Projected Profit & Loss Account 6.3 Demand estimation – Market Research 5. Market Analysis Summary 5.1.13 Internal Rate of Return (IRR) 6.1 Marketing Strategy 5.17 Successful declaration of the Project 6. 5.12 Return on Investment (ROI) 6.1 Bill of Material 6.10 Projected Balance Sheet 6.1.14 Net Present Value (NPV) 6.9 Competitive analysis 6.4 Pricing Strategy 5.8 Projected Trading Account 6. Financial Plans and Analysis 6.16 Gannt Chart – Implementation Schedule 6.8 Location Plan 5.3 Costing 6.4 Estimate of working capital requirement 6.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 5.1 Target Market 5.2 Total overheads of the workshop 6.6 Distribution Strategy 5.11 Ratio Analysis 6.2 Product Positioning 5.2 Mass diffusion in coastal areas.5 Financial Projections 6.1 5.2 Customer Feedback/Perception Feedback of organizations contacted personally 24 24 24 24 27 28 28 28 29 29 30 30 31 33 34 5.3 Other Parts of the world 5.15 Break-Even Analysis 6.7 Operating Costs 220.127.116.11 Promotion Strategy 5.
1 Advantages of our location 7.5 Risk Analysis 8.1 Internal Strengths 8. Future Products 57 58 Annexure: Annexure I: Annexure II: Annexure III: Annexure IV: Annexure V: Annexure VI: Innovation Catalogue List of organizations contacted through Email List of organizations/customers contacted over phone/direct People contacted for the successful completion of the Bplan.2 Production needs 7. Layout. floor plan for the manufacturing area Technology Transfer document 60 63 66 67 69 70 Conclusion 73 Bibliography 74 6 . Manufacturing Section 7. Strategy for Technology Licensing 10.4 External threats 8.2 Weaknesses 8.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 7.3 Opportunities 8.6 Business Risks 54 54 54 54 54 55 55 9.4 Availability and reliability of the suppliers 51 51 51 52 53 8. Critical Risks Section 8.3 Quality Control 7.
COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT List of Pictures #1 Mnaual Coconut Dehusker #2 Innovator at Work #3 Opportunity for Women #4 Labour at Work #5 Future Products 10 11 19 22 58 List of Figures #1 State wise production of coconuts #2 Operating costs per thousand Coconuts #3 Break-Even analysis #4 Layout of the Manufacturing Area 25 41 48 69 List of Tables #1 Production of coconuts in Kerala #2 Production of coconuts in Tamil Nadu #3 Production of coconuts in the World #4 Sales forecast for two years #5 Cost of production #6 Risk Analysis 25 26 27 33 38 55 7 .
which has substance to do with the success or failure of the business.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT MISSION The primary value of our business plan is to create a written outline that evaluates all aspects of the socio-economic viability of our business venture (manufacturing a coconut dehusking machine) including a description and analysis of all business prospects. OBJECTIVE To develop a promotional strategy for a new innovation to generate public awareness for the availability of such type of coconut dehusking machine in the market at a very reasonable cost. POSITIONING STATEMENT The ‘Coconut Dehusker’ is a mechanical device that efficiently and conveniently dehusks coconuts to get rid off labour problem and also to 8 . Endeavor has been put to create a Business Plan.
After finishing his studies he has been looking after his 7-acre coconut and mango garden. Later he has been selected for the District level Kabadi team for the Virudhunagar District. Jeyaseelan as Captain of District Level Kabadi Team Mr. R. 1. felt that too. He sends lorry load of husked coconuts through agents at Madurai and from there to Maharashtra. from Ramasamiapuram (Taluka: Srivilliputhur. Forty four year old Mr. District: Virudhanagar). He performs dehusking and packs the coconuts in gunny bags. EXECUTIVE SUMMARY 1. All the coconuts collected were given to local merchant who in turn will sell it to other states. he collects coconuts from other farmer’s field on contract basis i. Jeyaseelan like others involved in coconut farming. He started dehusking coconut through manual methods by hiring labourers. During festival times he will be representing Kabadi team to nearby villages and help his team to win many matches.. Gujarat and Andhra Pradesh.1 Innovators Detail Mr. Jeyaseelan in his leisure time plays “Kabadi” and he earned good name in his village in this game. In addition to his own land. Jeyaseelan.R. Problems usually faced by coconut dehuskers are: 9 . By seeing his talent he has been chosen as captain for the district level team. he is entitled to harvest coconuts from other farmers on annual lease basis. Problems Anybody involved in growing and selling coconuts would vouchsafe for the fact that husking them is certainly one of the more tedious part of the job. Jeyaseelan wanted to dehusk coconuts by himself and promote direct selling to other states. Virudhunagar District. This machine is extremely beneficial for coconut traders and industries. employed daily wage labourers to husk the coconuts. His Job Mr.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT enhance the productivity.e. Jeyaseelan (44) has studied up to SSLC and owns a coconut garden and mango orchard in Koomapatti village.
Jeyaseelan with the tenacity that he often showed while playing Kabadi continued to focus on his ideas of devising a coconut-husking machine. His expenses mounted and he ended up spending more than Rs.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 1) It became increasingly difficult to get people to dehusk nuts 2) Injuries sustained by dehuskers to their hands and other parts of their body were very common 3) It is more time consuming 4) Productivity gets affected. between 1991 – 2000. he had good experience in all aspects of dehusking coconut.000. He would spend all his leisure time thinking about probable designs and mechanisms. He used to go to the weekly market at Tilagarthidal. He began to make frequent trips as he started spending more time there to pursue his ideas. 1.00. Over the last 9 years. This search for a solution became a passion for him. 10 . 80 kms away from his village to sell his coconuts. Pic -1: Manual Coconut Dehusking Origin of Idea He felt that there must be some way of making coconut dehusking less time and labour consuming.
Efficiency increased and he decided to standardize this model. He devoted eight months to the problem of developing a mechanical husker. The blades were three quarter of an inch long and placed one inch apart. cylindrical metal rod. The rotating motion of the blades would husk the coconuts easily. the switch could be turned only by hand. A switch was used to operate the machine. He fitted a 1. Initially.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT engaging laborers in such a way so as to get maximum efficiency and output from this venture.5 hp motor that was coupled through a belt to a long. Pic – 2: Innovator at Work 11 . He worked on it further and feet could then operate it.2 Developing the Innovation Initially he developed a three-blade model where one blade would be inserted inside the husk of the nut and the other two blades would help in the process of peeling. 1. Two sharp blades were fixed at the tip of the rod. However. the entire process was time consuming and Jeyaseelan switched to a two-blade model.
3 Recognition and Awards • • • Jeyaseelan learnt about the National Grassroots Technological Innovation and Tradition Knowledge awards 2001 organized by the National Innovation Foundation (NIF) from SEVA. USP of the product Low price. His machine was featured in the local media. coconut shop owners and industries using coconut as their raw material to obtain the finished coconut based products i. a local NGO. 1.000. 25. This product will be a great help to dehuskers who have been seeking better options then the conventional manual ways for dehusking coconuts. low operational and low maintenance cost offering to dehuskers that 12 .4 The Product A low price. The award and the recognition made him a popular and respected figure in his village and surroundings areas. low operational and low maintenance cost offering for coconut traders. He won the Tamil Nadu state prize of Rs. to all those who dehusk the coconuts in a large amount mostly in the Southern region and other parts of India.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 1.e.
coconut biscuits. industries. The next important sector is the coconut shops (ex. 13 . Since he was a member of the coconut merchants association. Labourers are more comfortable with the existing method of dehusking and may take some time to get familiarized with this innovation. 1. he could convince many others to buy the machine. 1.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT will increase efficiency and productivity. He sold 30 pieces.5 Target Market This product is targeted mainly for the coconut traders in the southern region of India where coconuts are grown in a large quantity and dehusking is a must for their business. 13. 1. Nobody tried to copy his design as he got his innovation patented with the help of SEVA.000 shops in Tamil Nadu itself).500. They transport huge quantities of coconut to the northern and various part of India.6 Price He fixed the selling price of the husker at Rs. 30. This product is easy to use and effort required as compared to the conventional manual way of dehusking is very less. cooking oil. Coconut dehusking is mostly a family business and so old traders may be reluctant to accept this product and hence may not invest. and Coir pith etc. which use coconut as their raw materials to produce coconut.7 Entry Barrier The conventional way of manually dehusking the nuts dominates the market in the concerned regions. Risk factor and health problems as injuries in hands and other parts of the body are minimized. based products like hair oil. Finally.
This machine helps to eliminate the labour problem.1 About the Business Coconut Dehusking is an important aspect in a coconut industry. The business lies in manufacturing of the “Coconut Dehusker”. The dehusking is done with the help of a motor and blades that on rotation helps to dehusk the coconut easily to the desired level. and so the prospects of this product seem to be huge. dehusking mainly faces labour problems.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 2. finding target markets and prospective customers and selling the product. 2. Mr. The husk of the nuts is not only used for making ropes & mats but also as a fertilizer in the fields. Coconuts are usually dehusked manually where the labourers faces a lots of problems as it is tiring and also causes injuries in hands and other parts of the body. reduces the risk and also increases the productivity to a considerable extent. Dehusked nuts are sent to various large scale and small-scale industries using coconuts as their raw materials for the final products. Jeyaseelan has developed a simple labour saving mechanical device called 'Coconut Dehusker'. BUSINESS DESCRIPTION 2.2 Business Idea India is having a huge coconut industry. 14 . Thus.
2.500 nuts per day per unit is feasible. At 8 hr per day operation. Safe and reliable. Its speed of operation and simplicity is impressive as it takes only about six seconds to dehusk a nut with 100% husk removal. Portable .24-hr/day Operation providing full production with minimal downtime.All parts are built to the highest quality standards with long life foremost on our mind.Dehusks a Nut in approx 15-20 seconds. which is practically impossible to break. Robust Construction .COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 2.3 Product Description The dehusker is of extremely robust construction with a bare minimum of moving parts. production of over 2. 15 . The machine has been modified with provision to dehusk all size nuts. Hi-tensile Steel Blades Features a two-blade separator made of high tensile steel. 250 per hour. Duration of operation .Great for use in factory or field.4 Features and Benefits Fast and efficient .
Blade sharpening is not necessary .R. Jeyaseelan 3. and oiling twice a day.All of the above adds up to greatly reduced downtime. 2. After finishing his studies he has been looking after his 7-acre coconut and mango garden. Frees Staff for Other Duties Valuable employees can be assigned to other tasks. Category: Agricultural and Coconut business. not to mention cuts from machetes and spikes. Occupation of the Innovator: Owner of a coconut garden and mango orchard.e. Jeyaseelan (44) has studied upto SSLC and owns a coconut garden and mango orchard in Koomapatti village. he is entitled to harvest coconuts from other farmers on annual lease basis.they should last for years. the unit eliminates repetitive strain.R. personnel can be trained to operate the unit within half an hour. Title of the Innovation: Coconut Dehusking Machine 4. Background of the Innovator: Mr. Powered by Electricity . gnarled hands. Virudhunagar District. making the organization’s operations more efficient.Easy to Operate Once installed.The only required maintenance takes about 10 minutes: daily check of all nuts and bolts.The De-husker is powered by a mounted electric motor. Name of the Innovator: Mr. In addition to his own land he collects coconuts from other farmers field on contract basis i. coconut merchant. 5. Reduces Bodily Harm .Compared to the old manual methods. Reduces Down Time .COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Low Maintenance . 9 SCOUTING DOCUMENT (SD) 1. All the coconuts collected were given to local 16 . Easy and efficient ..
more productivity. Educational qualification: High School dropout. Summary: This innovation relates to a device that is used by the coconut merchants and also in coconut industries for continuous dehusking of the nuts in large quantities. It is a specialized machine that is used by the feature or subsystem. The tip of the rod is fixed with two sharp blades at one side. Jeyaseelan in his leisure time plays “Kabadi” and he earned good name in his village in this game. 15.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT merchant who in turn will sell it to other states. With this machine. Jeyaseelan has been working in the idea of developing mechanical device for 8 months during 1999 and he came out with few models. Initially he developed 3knife model. Features of the Entry: 1.000 per month. Comparison to current conventional alternative by a) Functioning Easier in operation. He has developed a simple labour saving mechanical device called 'Coconut Dehusker'. Through the rotation of the input shaft. easier in maintenance. Mr. The blades are at 3/4' length. 2. labour efficient. A 1. 17 . Total Income: Rs. Another feature of this machine is that it is easy in operation and maintenance. This machine consists regulatory method used in the conveying system and peeling system to make the coconut to be allowed to be dehusked one by one. energy efficient. the coconut is being dehusked in a uniform manner and is neatly and conveniently collected and recovered. Novelty of the innovation. the entire coconut is dehusked. coconut merchants and also in coconut industries for continuous dehusking of the nuts in large quantities.5 HP Electric motor is coupled through a belt to a long cylindrical metal rod. 6. Mr.
Patent filed (with the help of SEVA) SEVA Mr. Ph No. Madurai-625010. Dehusking huge amount (more than 10. Since he is a member of the Coconut Merchants Association.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT b) Cost Cost of the machine is high but output in terms of cost per kg reduces considerably. 8. Nagar. c) Removal of drudgery 3 Limitations 4. 48*48*30 inches 5. Commercialization Significance to women. Virattipathu. 135 kgs. he a) How many has been could convince many others to buy the machine.P.000) nuts a day in this machine (i. IPR considerations References as provided by the innovator/NIF. P.5 H. Current and future This machine to be used in the coconut industries application areas. So the innovator is into developing a new product described under Future Products. Specification Capacity Shaft rotating speed Motor Power Weight Outside dimensions 250 nuts /Hr. Tamil Nadu. 1420r/min 1. Email: numvali@vsnl.M. 6. 04522380082. 18 . made/sold/used locally? Very high for the coconut traders and industries b) What is the diffusion where dehusking of coconut is required especially in Kerala and Tamil Nadu where the concentration potential? of coconuts is maximum. handicapped and other marginalized sector.com 7. 6 such sets) is not advisable since it is not economical. Scout/ Nodal Officer/ Collaborator This innovation can provide opportunity for the women employment as they can work in the coconut industries. Removes drudgery of cutting coconuts efficiently at fast rate in coconut industries.Vivekanadan 43-T.e. is related to continuous dehusking of large quantities of coconut in a continuous fashion. 9. Innovator has sold 30 machines.P.
Scout’s assessment of Quite convinced. 10. 04563 226208 SEVA Any other reputed person of the village/town/city. Raghuram – Rajapalayam Ph: 09843062898 Res.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Mr. innovator’s competence in augmenting the innovation. innovator’s keenness in augmenting the innovation. Pic –3: Opportunity for women 19 . He has already sold 30 machines. Details of the scout: Scout’s assessment of This proposal was initiated from SEVA only.
which is coupled through a belt to a long cylindrical metal rod. The blades are at 3/4' length and at 1" interval.1 General Description of the Innovation A mechanical device to dehusk coconuts is developed by Mr.1 The Product and Technology 4.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 4. The machine consists of a 1. The tip of the rod is fixed with two sharp blades at one side. With the 20 . EVALUATION DOCUMENT (EV) 4. It is a simple labour saving mechanical device called “Coconut Dehusker”. Each set is coupled to a 1. Jeyaseelan.5HP electric motor.1. These blades and rotation help to dehusk the coconut easily to the desired level. He invented this machine when he came across some labour problems in dehusking coconuts and also to increase the productivity.5 HP Electric motor. In the innovators work spot there are six such sets.
efficiency. provision for dehusking the coconuts could also be incorporated without many changes in the power transmission and feeding and dehusking system. (Dehusking one Nut – 20 Secs. In an average about 12. Machine is compact and made of iron. safety considerations. Less manpower to operate (6 labourers are needed per shift) Less risky. Rotation of machine blades facilitates dehusking the nuts easily. 21 . Saves time on extra efforts to be put in dehusking the nuts manually. This parameter not only saves manpower cost but also improves productivity.2 Salient Features of the machine Coconut is dehusked into four or eight uniform pieces with 100% yield.1. Low initial Cost (Rs.000 could be dehusked in a shift of 8 hours. Processing Cost is less.) A novel machine in terms of its cost effectiveness. A better grip on the coconut is provided by the Iron Plate. 13.1. time saving and power transmission system. which acts as the stopper that prevents the nut to slip away vertically.000 – 13. 4. 4. Well-optimized power transmission.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT use of this device the husk could be separated into 4 pieces still leaving some coir fibers in the coconuts. The machine is fabricated in such a way that wastage of raw materials is minimized.3 Functional & Operational Performance • • • • • • The two edged blade which are at 3/4' length and at 1" interval ensures dehusking of the nuts to the desired level with minimum effort.500/-) 200 – 250 nuts can be dehusked per hour. new design of feeding. which ensures less consumption of electricity. The coconut dehusking capacity of this machine is 200-250 nuts per hour. If customer’s demand.
1. 22 . works on the principle of conversion of electrical energy from electrical motor into mechanical energy in terms of rotation of the centrally mounted iron shaft. The power is being transmitted to the rotating shaft from the electric motor through the Belt-drive.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 4. A better grip on the coconut is provided by the Iron Plate. which acts as the stopper that prevents the nut to slip away vertically.4 Working Principle The coconut-dehusking machine. This rotation of machine blades facilitates the dehusking process.
Iron frame l. f. Flywheel & V belts. c. Electrical motor. Shafts.5 Construction This machine consists of the following main parts: a. Motor Starter k.Belt drive. which is attached to another shaft through the V. Welder. Pulley.5 HP) having a Pulley attached to the flywheel. Foundation. Steel cover. Bolts and nuts. Condenser j.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Pic – 4: Labour at Work 4. The pulley is mounted on the other end of the motor shaft and is attached with the flywheel through the V-belt such that the power from the motor shaft is transferred to the driven shaft through the V-belt. d. which acts as the cutter. Electrician and a Painter are employed to assemble the machine parts to make the machine ready for sale. A fitter. h. Handle pipe m. i. Power Transmission The machine consists of Electric motor (1. Centrally mounted rod. Feeding and Dehusking Mechanism 23 . Iron Plate support. Bearings with box e. b. g.1.
The innovator targets “ J J Coconut Dehusker” in all parts of India.1 Marketing Strategy 5. In Tamil Nadu itself there are around 3. 4.5 RPM – 1420 Ampere – 8. The person stands in front of the machine’s double-edged blade and feed the coconut into the blade.5 Power consumption. 24 .1 Target Market Coconuts are mostly found in the coastal areas of India. Generally four passes are made to totally dehusk the coconut.6 Technical Specification • • • • • • • Electrical Motor Volts – 200/220 Single Phase – 50 Hz.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT The coconuts are fed into the machine manually by the labourer itself. The motor is started through the starter and the coconut is being dehusked by the rotation of the rotating shaft. KW/HP . These shops sell dried dehusked coconuts to end consumers. 5. 1.000 coconut shops. mainly in states of Tamil Nadu & Kerala. but initially to start with it is targeted in states of Tamil Nadu and Kerala. MARKET ANALYSIS SUMMARY 5.1.12-units/ shift.1.1.
These companies for dehusking coconuts in large numbers can use this product.000 nuts on a daily basis. copra bazaars etc.2 Mass diffusion in the coastal areas of India Coconut is usually grown in the coastal areas of India in the states of Tamil Nadu. These types of traders constitute of most of the market for this product. West Bengal. cooking oil etc. Since Kerala is the major producer of coconuts. where he collects coconuts from all parts of his and nearby villages. next comes Tamil Nadu having 25%.1. 25 . The comparative figures are shown below. The leader in the coconut industry is Kerela.COCONUT DEHUSKER 2. the whole coconut industry is based mainly in Kerala like the oil producing industries. dries them under the sun. mattresses. BUSINESS PLAN DISHA PROJECT To Coconut traders who sell dehusked coconuts in a large amount to large scale and small-scale industries across India. Orissa. He dehusks around 15. Some Large-scale industries like those producing coconut hair oil. The innovator Mr. then dehusks them and finally sells them to many parts of India. coir. coconut biscuits and sweets. 5. 3. Kerala and Karnataka. Jeyaseelan is himself into this business. Some production is also there in the other states including Andhra Pradesh. use huge quantities of coconuts for their raw material. Goa and Maharashtra.
Production of coconuts in Kerala.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Fig . Sl No.1: Statewise Production of Coconuts So the main market for this dehusker is these two states. 1 2 3 4 5 6 7 8 Place Ernakulam Thiruvananthapuram Pallakad Alappuzha Kozhikode Malappuram Kannur Kasaragod Production in Tonne 358 million 635 million Nuts 252 million 288 million 903 million 626 million 621 million 469 million Table .1: Production of Coconuts In Kerala Production of coconuts in Tamil Nadu 26 . The dehusker also finds a potential market in Karnataka and Andhra Pradesh having 14% and 9% share in production.
1.3 Other Parts of the world 27 . these two areas are the target market for the “Coconut Dehusker” 5.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Table –2: Production of coconuts in Tamil Nadu Since majority of the market is in Kerala and Tamil Nadu.
00 196.35 2.65 9.27 0.00 70.12 2.27 100.83 1.00 160. but is not used to the optimum.64 0.00 13595.43 100.62 3.00 6576. Micronesia Fiji India Indonesia Malaysia Papua Papau New Guinea Philippines Solomon Islands Sri Lanka Thailand Vanatu Vietnam West Samoa Others Total Table .65 1.56 15.00 2546. much different from the one under study exists there. Some dehusking machines. Philippines.00 346. if marketed properly.55 53597.07 0. Country Area (in 000' ha) 17 65 1796 3745 280 14 260 3093 59 416 377 96 190 75 1092 11578 Percentage share 0.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Area and production of coconut in different coconut growing countries of the world.25 26.75 2.55 0.42 0.99 0.13 1.00 287.00 Production Percentage million share nuts 40. 28 .54 4.51 32.37 26.00 F.S.00 960.26 0.40 13968.35 0.00 722.00 1065.79 22. Sri Lanka and Thailand.06 25.00 1130.30 12.51 3.15 0.36 1.71 0.3: Production of Coconuts In the World Coconuts are grown in other parts of the world but the maximum growth from countries other than India are from Indonesia.11 0. Hence.00 11935. this product can gain considerable ground in the foreign market.
By highlighting its USP and showing live demonstrations the customers will be made to realize the products benefits.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 5. Thereafter efforts will be made to inform the customers about the dehusking machine by different advertisement and promotional strategies. After specifying our target as the coconut industries and traders mainly in South India. and solving them through R & D.3 Demand Estimation – Market Research Over more than 45 organizations and coconut traders using the manual procedure to dehusk coconuts were contacted through these means: 1. email and snail mail 3.1 Customer Feedback or Perception The organizations contacted personally (ref: List of organizations contacted personally) were asked different questions to ascertain their interest and willingness to buy the machine.2 Product Positioning Positioning is an important method that focuses on positioning the product in customers mind. Their inputs. This will be done by considering upon the complains and difficulties faced by consumers. One to one meeting 2. 5. Telephonic conversation An innovation catalogue along with a covering letter (Annexure I) was sent to some of them in order to create awareness about the new technology and generate interest. 5.3. Post selling is an important phase that stresses on the customer retention process. Subsequent technology related queries were answered with the help of the innovator. A stringent analysis will be done to understand the way the product could be made attractive to them. we will first try to understand their psychology. after showing them the video of the machine were collected and analyzed under certain parameters listed below: o o o o o o o o Price Maintenance cost Technical reliability Effectiveness of dehusking Operating cost Operating life Size Labour charges 29 .
The companies from Kerala eg. The break-up is given later in this report.4 Pricing The innovator prices the product at Rs.COCONUT DEHUSKER o Ease of use o Effort required o Health Problems BUSINESS PLAN DISHA PROJECT 5. Will the proximity of m/c making any difference? The companies by talking to our team and having the Innovation Catalogue became got convinced. 5.500. 30 .2 Feedback of organizations contacted personally Most of the organizations gave a positive response. Panniankara Oil Mills. Address and Contact are listed in Annexure II & III. factory overheads and the profit. So during sales. as it will increase the profits by decreasing the cost of production. The companies expressed that this type of machine will be of a great demand and will capture the future coconut dehusking industry if marketed properly. the working of the machine has to be demonstrated to the customers for their better understanding and judging. Their Name. but it is recommended based on the market study that an upward price revision could be considered.3. The pricing is done taking into consideration the cost of raw materials. What did companies comment about the future selling of the m/c? The companies contacted personally were very much convinced and some even wanted to buy the machine immediately. told that labour is very costly in Kerala and this machine will be a boon for traders like them. 13. but they wanted to have a view of the working of the machine.
one shop is made available for each village for storing one machine and keeping 2 to 3 extra depending on the demand.5 Promotion Strategy Promotion The target markets and the prospective customers will be reached through promotional strategies and advertising. the dehusker is sent to the customers by the following means: Distribution centers For remote villages. For the industries using coconuts as their raw material. Hindi and newspapers in local languages. village fairs. Personal Visit and demonstration Local channel advertisements Industrial tidings. For a cluster of villages. and awareness programs. - 31 . advertising in magazines.6 Distribution Strategy After the customers have paid their advance or are ready to buy. Sector wise: Villages Local Newspapers Rural Fairs Personal visit with demonstration Local cable channels Pamphlets Also by word of mouth Industries and urban coconut shops English. promotion has to be done through personal selling. Since most of the customers are farmers and from the rural segment of India.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 5. 5. Concentrating on Tamil Nadu & Kerala. one common shop is to be established to the nearby market well connected to the villages. the advertising has to be done in local dailies.
Marketing 32 . Targeting villages for the coconut traders and shops.COCONUT DEHUSKER Distribution to customers - BUSINESS PLAN DISHA PROJECT From factory to distribution centers: Only spare parts are taken to the distribution centers for the ease and economical transportation of the product.From distribution centers to customers: If customer is situated near to the distribution center.Machine . they are allowed to pay in installments.7 Sales Strategy De-husking Machines are priced to be cost effective in the short as well as the long-term. After sales service will also be provided. Manpower needed: Per village – 2 Total number of targeted villages in Tamil Nadu and Kerala – x Total number – 2x Skills required from the sales people: 1. Proper distribution channels will be set up and sales force will be given the required training. a trained mechanic is sent for the proper assembling. Fluent in local language. the machine is assembled in the center itself. Since our main target market are the farmers and taking the fact under consideration that they cannot make the full payment at a single go. then the partial assembling is done in the center and rest is left for the customers place. functioning and training the people who are involved in using it. . If customer is situated far away from the distribution center. - In both the cases. then transported to the customer. Training required: About . This is for the ease and economical transportation of the product. 5. 2. Convincing skills.
they should last for years.Convincing skills . and oiling twice a day.230 /-) After Sales service: Maintenance of this product is very low except for daily check of nuts and bolts. Blade sharpening is not necessary . since farmers are not likely to pay any amount before the real use of the machine starts.000/Rest half in a period of 6 months. per month Rs. 14.Good communications .e.e. # Scenario 1 Full payment after receiving the machine i.COCONUT DEHUSKER . Installment schemes: Considering no advance payments. i.Fluency in Local languages Things required to be carried by the sales personnel: - BUSINESS PLAN DISHA PROJECT Video clips One machine for demonstration (in fairs and in distribution centers) Pamphlet Price catalogue with installment schemes. 7.000/So no installments # Scenario 2 Half Payment i. Rs. 33 . 1.170 + 60 = 1.e.230 (1. Still trained personnel will be sent for any technical problem for a period of six months after installation. Rs.
Availability of cheap labour.744 8 10 16. which should be kept in mind while selecting a location for starting this kind of coconut dehusking business: • • • • • • A coastal area.744 7 10 16.8 Location Plan Location plan refers to the site that perfectly suits the business in terms of establishment and growth.016 5 10 16. The location of the innovator’s village was fulfilling all the above-mentioned requirements to start the business. The following are the suitable requirements.744 Year Two 6 10 16. Therefore he has chosen his village site itself to manufacture the machine.744 Table . 34 .016 4 8 16.4: Sales Forecast for Two Years The prior analysis has been made based on the current market survey.016 3 8 16. Adequate knowledge about the market. Availability of raw materials at nearby places to minimize the transportation cost. More coconut concentration. 5. his established goodwill and relevant experience regarding coconut trading helped him to step into this venture.560 2 8 16. Besides all this. Of Machines) Price 1 8 14. Low cost of land.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Sales Forecast Year One Quarter Sales (No.
since there are no other manufacturers of a mechanical coconut dehusker in the region. there is an indirect competition from the cheap labour available across the country.9 Competitive Analysis In the present scenario. Although several machines have been patented over the last 70 years or so. there is no direct competition from other manufacturers. However.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 5. 35 . it appears that none have been successful. This innovation has got a bright prospect and will prove to be a great help for the coconut dehuskers.
800 200 100 213 150 100 50 6.350 250 1.350 250 1. Starter) Fabrication work with workers salary (Each Machine) Current Office work.25 125 1.6” b) Small 1.000 1.800 200 100 213 150 100 50 250 250 1.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6 FINANCIAL PLAN AND ANALYSIS SL. Erection.350 650 900 10. Particulars Unit Rate (Rs.32” Bearing & Box Shaft Inside Pipe Handle pipe Handle Nuts & Bolts Blade Steel cover Condenser Starter (3 Pt. TOTAL RM Cost 1 1 1 1 1 1 1 1 40 2 1 1 1 - 3.350 - Qty. Promoting etc.) 3. No.000 1. Cost (Rs.1 Bill Of Material 36 .) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Motor Iron frame Pulley Wheel Radius a) Flywheel 5.613 6. Ordering. Or 2Pt.
Workshop overheads as above – Apportioned on 8 machines (monthly capacity) Price as suggested by innovator is Rs.2 Total Overheads of the Workshop Overhead Wages Rent for the workshop Electricity Telephone Salaries of sales force Miscellaneous expenses Total Overheads Amount 5. Raw Material Cost Factory overheads Total Cost Margin Ex – Factory Price 11.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6.000 1.3 Costing of a “Coconut Dehusker” Head Cost 10.250 1.100 14. 13500 but it is recommended based on the market study that an upward price revision could be considered. 10. Jeyseelan’s remuneration One month Monthly bill validated Monthly bill validated One Month Monthly bill validated Rs.900 2.613 1.000 37 .300 6.450 600 1.287 Reference Detailed Bill of Material (BOM) as above.600 400 Remarks Does not include Mr.
712 Remarks For eight machines @ 50% advance For 1st Quarter (for 24 machines) # Scenario Two: Advance order for only one Machine Head Advance Total Cost Working Capital Gap Price/Cost(Rs).54.47. 56.712 1.712 Remarks For one machine @ 50% advance For 1st Quarter (for 24 machines) # Scenario Three: No Advance order Head Advance Total Cost Working Capital Gap Price/Cost(Rs.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6.000 2.4 Estimate of Working Capital requirements # Scenario One: Advance orders are available (For calculation the price is taken as Rs.) 0 2.712 2.54. 14000 per unit) Head Advance Total Cost Working Capital Gap Price/Cost in Rs. 7.712 2.712 Remarks For one machine @ 50% advance For 1st Quarter (for 24 machines) 38 .98.54.000 2.54.
900 11. a tax of intra-state sales tax @4% is considered. as suggested by the market study that there is scope of upward price revision.560 16.744 39 .900 11.The price of the machine is initially set as Rs.500). it is estimated that the sale in the first quarter would be of 24 machines and thereon-same pace would continue for at least next three quarters.744 16.016 16.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6.900 14.016 4 11.016 Year Two 5 6 7 12. . Quarter Cost of Production Price Year One 1 2 3 11. price would be revised by 10% plus tax and after one year another 5% plus tax. which will be passed on to the buyer. 14.495 16.495 12.744 16.The cost of production is assumed to be growing with a rate of 5% pa.900 16.000 per unit (original pricing indicated by the innovator was Rs. In addition.5 Financial Projections Based on a conservative estimate.744 8 12. Therefore it is recommended that after the first quarter.495 16.495 12. . 13. However.
67.24. which is a bit higher.490 6. Making provision with higher rates would provide a cushion against the unforeseen sales and cost variations.738 25.67.440 1.698 10.490 6.67.950 42.054 Note: The income is assumed to be subjected with an average rate of 30%.24.24. Of Machines) Revenue Cost of production Total profit NO Excise & Sales Tax @ 4% Tax 30% Net Profit 1 10 2 10 3 10 4 10 1.950 42.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Table – 5: Cost of Production Projections: For Second Year (Four Quarters) Year Two Quarter Sales (No.24.738 25.054 10.054 10.054 10.490 6.440 1.950 42.738 25.440 1.698 1. 40 .490 6.440 1.67.950 42.698 1.698 1.738 25.
BUSINESS PLAN DISHA PROJECT
6.6 Cost Benefit Analysis
Objective: To dehusk Quantity (Nos.) Dehusking Speed (Rate in Quantity per Hour)
150 Nuts ph. (an average estimate since rate goes down with time due to fatigue and injuries) 6.6 Man-Hrs Rs. 10 Rs. 66
200 Nuts ph. (Given by Mr. Jayaseelan, also live demo seen when the team visited site) 5 Hrs. Rs. 6.25 Rs. 31.25
Time Reqd. to dehusk 1000 Nuts. Labour Charge per man-Hrs A) Total labour cost for dehusking 1000 nuts Power consumption for dehusking 1000 nuts B) Power Charges for 1 Hr. Initial Fixed Investment
Nil Rs. 500
Rs. 5 (12 units @ Rs. 3) Rs. 14,000
BUSINESS PLAN DISHA PROJECT
Financial Cost per hour (with Interest of 12% p.a)
Rs. 0.72 per hour of processing (apportioned on 12*24*8) Rs. 3.6
C) Capital cost for dehusking 1000 nuts. D) Maintenance for 1,000 nuts
Rs. 6.25 (Rs. 2,880 p.a.) Rs. 3 (1,400 p.a.) Rs. 49.10
E) Depreciation Cost (Operating life of 10 Years) Total Operating Cost for 1000 Coconuts = A+B+C+D+E
Note: Dehusking quantity as given by the innovator.
6.7 Operating Costs
The operating cost as calculated in the above table of Cost Benefit Analysis is Rs. 49.10 for 1000 coconut, which is much better than the conventional manual method of dehusking which comes to around Rs. 66.13.
R U P E E S
70 60 50 40 30 20 10 0 Manual Coconut Dehusker
Fig - 2 - Operating Cost Per 1000 Coconuts
BUSINESS PLAN DISHA PROJECT
The innovator is not taking any loan and is investing the amount to set up the business of his own. So he saves on paying the interest. The only source for him is the advance collected. The fund is utilized to manufacture the machine. The expense is on raw materials, paying the over heads like electricity charges, welding and cutting, fitting and painting, rent, wages and salaries, telephone and miscellaneous expenses.
6.8 PROJECTED TRADING ACCOUNT
Amount 3,62,520 10,440 1,000 9,000 60,000 5,000 2,48,545 6,96,505
Cr. Amount 5,12,512
Purchases Power Carriage Inwards Manufacturing Expenses Wages Insurance on Raw Materials To Gross Profit
Sales Closing Stock -Raw Materials -Work in Progress -Finished Goods
90,630 45,315 48,048
500 1.200 7.105 2.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6.880 7.545 Date Particulars To Advertisement Provision for Doubtful Debts Salaries to Sales Force Telephone Charges Legal Charges Repairs & Maintenance Depreciation On Shade Provision for tax Electricity Printing & Stationary General Expenses Net Profit Total By Gross Profit b/d 2.600 19.545 44 .000 1.960 1.48.9 PROJECTED PROFIT & LOSS ACCOUNT Date Particulars Amount 18.104.22.1680 9.200 5.545 Total 2.76.000 7.300 6.000 2.
10 PROJECTED BALANCE SHEET 45 .COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6.
7.585 6.000 25.92.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Liabilities Capital Creditors Overdraft Profit after Tax Outstanding Expenses Amount 1.000 1.82.192 Less prov: 9.000 1.50.315 48.000 1.310 1.630 45.275 5.592 90.48.000 Assets Fixed Assets Shade 70.600 Closing stock Raw Materials Work in Progress Finished Goods Total Amount 63.048 5.82.000 Loose Tools Welding Machine Current Assets Prepaid Expenses Cash Bank Debtors 1.84.000 Less Dep.11 RATIOS ANALYSIS Gross Profit Ratio Gross Profit Ratio = Gross Profit * 100 Sales = 2.82.000 15.545 * 100 46 .20.000 1.585 Total 5.000 2.000 11.23.00.
36 % Fixed Asset Turnover Ratio Fixed Asset Turnover Ratio = Sales Fixed Asset = 5.5 times (approx) 47 .000 = 5.COCONUT DEHUSKER 5.12.967 1.63.512 BUSINESS PLAN DISHA PROJECT = 48.105 * 100 5.75 times (approx) Stock Turnover Ratio Stock Turnover Ratio = Cost of Sales Average stock = 2.76.512 89.4 % Net Profit ratio Net Profit Ratio = Net Profit * 100 Sales = 1.993 = 1.83.512 = 34.12.12.
5 (approx) 6.25.592 1.12 Return On Investment (ROI) Return on Investment = Net Profit before Interest.105*100 5.25.585 1.000 = 2.585 30 % = = 48 .82.000 = 4 (approx) Quick Ratio Quick Ratio = Current Assets – [Prepaid Expenses + Stock] Current Liabilities = 3. Tax and Dividend *100 Capital Employed 1.93.07.76.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Current Ratio Current Ratio = Current Assets Current Liabilities = 4.
14 Net Present Value(NPV) Year-end cash inflows are – Rs.13 Internal Rate of Return (IRR) Internal Rate of Return = Capital .000 14.093 16 units (approx) = = 49 . 2.6 % (approx) 6.000 + 50.10)5 6.000 .10) = 22.76.15 Break-Even Point (B.000 + 1.1.000 + 1.00. Rs.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6.82.10)4 (1 + .50.50.310.000 . Rs.00.000 .560-9.76.E.500 + 2.P) Break-Even Point = Fixed Costs Sales Price – Unit Variable Cost 89.00.10)2 (1 + . NPV = 2.Net Profit Net Profit = 1.105 = 4.000 .000 . Rs.84. 1.5. Rs.00. 1.000 in years 1 through 22.214.171.124* 100 1.585 (1 + . 50.000 (1 + . The opportunity cost of the capital may be assumed to be 10 percent. 2.10)3 (1 + .
16 Gannt Chart – Implementation schedule 2004 2005 50 . R e v e n u e & C o s t s 60 48 Sales Line Total Cost Line 36 244608 24 12 BEP Fixed Cost 8 16 Number of Units 24 32 40 Fig – 3: Break Even Analysis 6.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT In ‘000 Rs.
potential customer. licensee. target market) Select Location Setting up of Manufacturing Unit Recruiting sales force and trained labour Begin Mfrng. till the Final Review Analysis Project Assigned Product Study (FAB) Planning 14 Market survey (Mass diffusion. (1st Qtr) Batch – 1 Review Analysis-I Batch – 2 5 Review Analysis-II Batch – 3 Review Analysis-III 5 10 14 14 14 14 6 6 15 15 15 15 5 51 10 10 15 .COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Oct Nov Dec Jan Feb Mar April May June July Aug From Project Asgn.
it may change as per the agreement signed by Mr. it shall also be treated as success. Non-exclusive.18 Rights on Know-How and related Matter The rights on the technology as claimed in the patent application would be with the innovator. Exclusive vs. However. If technology is licensed during the currency of the project agreement. Jeyaseelan. Regional licensing etc.17 Successful declaration of the Project Sales of 96 machines per year would be considered as excellent success. 6. there could be several ways. 52 . Only in case of technology licensing.g.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6. Jeyaseelan and the licensee. in which technology could be licensed e. Mr.
Shafts.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 7. he has acquired sufficient knowledge about the market and also created goodwill for himself. As it is a rural area. MANUFACTURING SECTION 7. Handle pipe 14. 9. cheap labour is available to him. The land purchased for his manufacturing unit was lesser as compared to that of urban areas. The raw material required for manufacturing the machine was available at nearby places. 10. Bolts and nuts. Iron frame 13. Electrical motor. which acts as the cutter. Paints 53 . Foundation. 3.1 Advantages of the Location • • • • • The innovator’s village is near to the coastal area. it in turn reduces the transportation cost. 7. V belt. hence having more coconut concentration. Condenser 11. Pulley and flywheel. 2. Components for production 1. 7. Raw Materials 1.2 Production Needs Components required for production 1. 2. Centrally mounted rod. Steel cover. Welding machine 2. 5. 8. 4. Bearings with box 6. Motor Starter 12. Iron Plate support. Since he was already engaged in the same occupation of coconut trading.
Electrical wires 5. d. fitting and painting. Space for shade. good amount of inventory must be available to meet sudden demand. So this should be the first priority before launching the product commercially. Experienced personnel in welding. f. sunlight and rain. Cutting tools 4. b. 54 . General Requirements: a. For this. To get the certification from BIS the product should meet certain requirements recommended by BIS. which is required for some fabrication. Also.3 Quality Control ISI certificate for the product has to be obtained from BIS (Bureau of Indian Standards).COCONUT DEHUSKER 3. Proper Structure: It should maintain its structure according to the specifications Proper Standard Its other components should also maintain a minimum level of standard. People having general idea about lathe machines. g. Electricity. Semi skilled labour. Full Protection: The machine should be placed in such a way that the electric motor and the power transmission system get protected from water. Electrical testing equipment BUSINESS PLAN DISHA PROJECT 3. c. we should modify and develop the product to raise it to the level of BIS standards. 7. The requirements include: Rust Prevention: The iron parts should be well painted so as to prevent it from getting rusted. Warehouse. e.
55 . 7. The innovator has good terms and contacts with the suppliers because of his prior occupation in the same field.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT We would also work towards getting an ISO certificate for the organization.4 Availability and reliability of the suppliers For the production of machines. the components to be used as their raw material are available to the manufacturer by the suppliers that are present in nearby villages and markets within reach. For this. the working environment and the labour treatment should meet the requirements. which makes him known about the nature of market suppliers.
. 8.1 Internal strengths - - It’s a new and unique invention in its own field.The market may get saturated after a long period of time.Lack of appropriate advertising to reach the target market may lead to early death of the product. then this machine can be made into a composite one by using six sets together which has added advantages over this machine.Some other new innovations having better productivity & cost efficiency may enter the market.3 Opportunities . .When the production will be very high. Less labour consuming. 8. More investment is required as compared to manual operation.4 External threats . Saves effort & time. High productivity. 56 .The power supply becomes more costly. . It requires minimal of maintenance. The machine is quite bulky & requires lot of space for installation & operation.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 8 CRITICAL RISKS SECTION 8. 8.Proper education about the product & spread of word of mouth is very important for the formation of good perception of the product. It has very low operating cost. . Doesn’t require any sort of repairing for a long period.The machine may acquire a better & sophisticated design & look.2 Weaknesses .Others may also start manufacturing similar machine with little variations. .With the bulk production at the later stage the cost of production will go down. . .
In the eventuality that demand doesn’t grow and it is not profitable even to carry on the business with the existing capacity. Demand will be properly studied and evaluated in every six months.000 2.50.310 Table – 6: Risk Analysis 8. The plan is for the manufacturing of 8 machines per month for the first period and then increasing it by an increment of 1 machine in every successive period.80 0 0 0 5. Competitors At present there are no competitors that offer the same benefits as the product offer.000 6.000 0.000 9.150 47.84.500 14.450 66.20 1.50.585 3 3 3 1.000 5. It is unlikely 57 .00.00.500 14. Per unit) FC (in Rs.6 Business Risks The possible business risks are: Poor demand Effort has been made to minimize any risk of poor demand especially in the initial period. Poor demand is an unlikely scenario as the production capacity for the first two and half years as planned is very minimal.) Depreciation (in Rs. therefore in this regard the product is safe from any potential competitors offering the same benefits like a manual system for dehusking coconuts.) Tax (in percent) Cost of capital (%) Project life (period in years) Preliminary + pre operating expenses Initial investment (in Rs.00.000 1.) 10 70 50 13.40 0.82.000 1. the unit shall be closed down and all assets that can be sold will be disposed of accordingly.000 89.5 Risk Analysis Variables Range (Min) Range (Max) Most likely value Quantity (per year) Price (in Rs.) VC (in Rs. Since this is a completely new venture with a completely new product such risk will have to be taken up.250 75. Any future plan for expansion will be based on the interest generated and future orders that will be received.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 8.
The only risk is new players copying the design and giving the same offering in the market. 58 . . Practically no customer would be willing to let another party blatantly copy and fabricate the machine for which he has paid a price. The Selling price is projected at around Rs. 2000. engaging laborers in such a way so as to get maximum efficiency and output from this venture. Raw materials are easily available both in the rural areas and smaller towns and even in bigger towns. Study of the machine by the prospective fabricator is bound to elicit interest from the purchaser. Manufacturing for own use There is always a danger that traders may try to imitate the product and construct the same for their own personal use. This would probably be a product purchased and installed by a trader. Expertise of the innovator: The innovator has perfected the innovation in a trial and error method. Though simple in design. nearest to him. Therefore sacrificing the time coupled with a big margin to make errors would also act as a deterrent to the most skillful labourer. However this issue can be dealt with by filing design patents for the various variants. which is a margin of around Rs. This argument is supported by detailed prior art that has shown there are no other manual systems existing anywhere else. 13500. 11500. Cost of the raw materials The total cost of the raw materials for construction of the coconut dehusking machine comes to around Rs. Over the last 9 years between 1991 – 2000 he had good experience in all aspects of dehusking coconut.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT that in the near future there will be players in the market offering manual coconut dehusking machines. he would still require some reference. Help from purchaser: Even if a person decides to imitate the product. One possible reason being that the cost involved with purchasing the machine from the innovator is too high. fabricating the machine still involves a lot of skill.
com Website: http://www. India Ph: +91-495-2366681. The detail is as follows: a. sales@lakshmioil. Krishnadas 9/622 B. STRATEGY FOR TECHNOLOGY LICENSING The innovation catalogue has already been mailed to the coconut traders and coconut oil industries willing to buy the machine for a considerable reduction in the processing cost.lakshmioil. Cherooty Road Calicut-673001 Kerala.com 59 . email@example.com. The response has been quite encouraging. Panniankara Oil Mills Mr.com.B. 2365244 Email: nideesh@lakshmioil. T.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 9.
which has been discussed here. Attaching 2 hp motor and 2 flywheels he designed a composite unit. which passed through a pulley.000 nuts per hour. Manoharan.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6 FUTURE PRODUCTS The coconut dehusker. the motor was attached to the dehusking rod by a belt. the belts had to be changed frequently which was not very economical. two flywheels and a gear mechanism. The speed of the shaft was stabilized through the two flywheels. A central shaft rotated the peeling blade. All these problems led to high recurring expenses. Unfortunately the Tamil Nadu government has not yet officially recognized the innovation. The switch and the coil in the motor were also subject to a lot of wear and tear. In each unit. Organization with 60 members promoted by SEVA). He discussed these problems in the innovators association meeting (Regd. The improved dehusker could dehusk 1. using a single machine will not be very economical. but when a huge quantity of nuts needs to be dehusked. another innovator suggested that 8 units could be clubbed into a composite unit. 60 . is having numerous advantages on its own. A gear and clutch mechanism was incorporated. He had been using six dehusker units. Since the motor was frequently switched on and off. This idea drove Jeyaseelan to think of something innovative to improve the machine. Pic – 5: Future Product Two innovators Manoharan and Balan worked with Jeyaseelan on improving the dehusker. This model did not involve a separate switchboard and a belt. which could be operated through a single motor of 1.5 hp or 2 hp capacities by using a shaft.
Diffusion of this innovation would be invaluable as millions of coconuts are dehusked (and all manually) all over the world. We wish that the workers’ cooperatives or groups own the new dehuskers so that benefits of the improved productivity reach the working class. 60. He plans to sell this machine having eight units at about Rs. which incorporates 8 units.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Jeyaseelan is now in a process of standardizing the improved design of the dehusker.000.000 to Rs. 50. He wants to patent this model. 61 .
time saving and power transmission system. Ahmedabad) Bungalow No. (Dehusking one Nut – 20 Secs.com 62 . R. Less manpower to operate (6 labourers are needed per shift) Less risky. Satellite Complex. In an average about 12000 – 13000 could be dehusked in a shift of 8 hours.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Annexure I INNOVATION CATALOGUE Innovator: Product Development: Incubation Assistance Mr.org Product Features: This Innovation is a simple labour saving mechanical device called 'J J Coconut Dehusker'. (Eliminates injuries in their hands and other parts of the body) Machine is compact and made of iron. Rotation of machine blades facilitates dehusking the nuts easily. Weight – 135 Kgs. Govt. Ahmedabad – 380015. Jodhpur Tekra. Jayasheelan Innovator & Proprietor National Innovation Foundation (A body supported by Dept. 1. Samrat Ghosh Mob: 09886229781 Product Enquiries: email: samrat_urs@rediffmail. R. of Science & Technology. Jayasheelan Mr. Website: www. Saves time on extra efforts to be put in dehusking the nuts manually. Low initial Cost (Rs. This machine helps to eliminate the labour problem. 13500/-) 200 – 250 nuts can be dehusked per hour. reduces the risk undertaken while dehusking large quantities of coconuts and also increases the productivity to a considerable extent. Unique Features: Coconut is dehusked into four or eight uniform pieces with 100% yield. Premchand Nagar Road.nifindia. Processing Cost is less. efficiency. safety considerations. new design of feeding.) A novel machine in terms of its cost effectiveness. of India & IIM.
Bangalore) Comparison between Manual and Machine Dehusking Particulars Quantity per hour Time Taken per coconut Risk Factor Electricity charges Health Problems Manual 150 – 200 19 .24 secs. Nil 12 units @ Rs.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Avijit Sarkar Mob: 09886169135 email: avi4u_02@rediffmail. Changing of belts depending on the use. 250). Replacing switch and coil after regular intervals.com (Student: IFIM Business School. 63 . changing of the condenser when problem arises (Cost Rs.3 = 36 /unit Nil No of labours involved Labour Charges Total labour cost Ease of use Effort required Wastage in coir 6 for 15000 nuts 60 / day 60 x 6 = 360 Easy Very less Nil Other Features: Robust and reliable Warranty of 3 yrs Maintenance cost – greasing of the moving parts. Very High Nil Injuries in hands and other parts of the body 40 for 15000 nuts 60 / day 40 x 60 = 2400 Difficult Very high Few Coconut Dehusker 250 15 – 18 secs.
Value Addition and Research Development Email: mvaidya@nifindia. Contact: DISHA – Shaping Innovations National Innovation Foundation Manish Saxena National Coordinator. 13500/(One time or else part payment through installment schemes) For further information. 98253.16994 Manish Vaidya National Coordinator.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Cost: Price Rs.org Ph. Business Development Email: firstname.lastname@example.org Ph: 98253-16992 64 .
600 026.com abriformulations@touchtelindia. Jai Krishnan Sambasivan P. Vadapalani Chennai . Kalkaji New Delhi . Amirtha Impex amirtha_impex@yahoo.O. (India) Tel : +(91)-(11)-51604333 Fax : +(91)-(11)-51604334 Mr. NAME Abri Formulation Pvt. Bag No.688 012. Lodhi Colony .No 1. Ltd EMAIL abrienterprises@rediffmail. 24643031 Contact Person: Mr. email@example.com cochinayurvedic@vsnl. Monica Malhotra G-115. Cullen Road Bazaar P. 24691123 Fax : +91-11-24691735.110 019. Alappuzha (Alleppey) .com 65 .net ADDRESS Contact Person : Ms. BASTIAN SURESH COCHIN AYURVEDIC CENTER suresh@cochinayurvedic. New Delhi-110003 Phone : +91-11-24619367.4803. India Tel : +(91)-(44)24800588/31035577/9444123036 No. INDIA 2.com 3. Palani Andavar Koil Street. Natarajan D 55/44.O.net 4.33.com.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Annexure II List of organizations contacted through Email S. Gunbow Trading Company ceo@gunbowmail. Tamil Nadu. New Municipal Double Storey Market. Ist Floor. Kerala.
Neptune Equipment coconut fibres firstname.lastname@example.org 66 . Theo Sukianto (Director) Jalan Raya Semarang-Demak KM 16 Semarang .org 10.6511865 42/9. P Prabhakara Nadar.641 015. Dediasan. Box 16353.net.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Tel: +(91)-(477)2244133/2244979 Tel.24 . 9. (India) Tel : +(91)-(422)-2572591 Contact Person : Mr. (Indonesia) Phone: + 62 .net 7. Mr.id Mr.net info@neptuneengg.. 8.net. (India) Tel : +(91)-(33)-3095 9815 Fax : +(91)-(33)-24553238 Pullikede Kollam – 691001 Tel : 0474 – 742176/741776 6. Ganges ganges_7@vsnl. Kamarajar Road Coimbatore . N. mansarovar farms food@manasarovar. Alamelu Nagar.com P. Central Java. R. Janata Industrial Estate Lower Unit No. Sandeep Dave Address : 297. sunjaya coconut shell powder hindi@pacific. Senapati Bapat Marg.vsnl. Phase-II. Frigmaires International fe@vsnl.O. Ramesh 39.East End Park Kolkata-700039.24 . Fax: +(91)-(477)-2244550 5. Opposite Pheonix Mill Maharashtra-400 013. Tamil Nadu. West Bengal.in 8. V.6511864 Fax: + 62 . Mr. Panchal. Swamy Oil Induatries arjun@md3. (India) Tel : +(91)-(22)24944108/24945624/24926159 Fax: +(91)-(22)24944108/22186046/22187750 Mr.
email@example.com 13. Calcutta.98245 00979 Fax : +(91)-(2762)-252070 11. gem.in. 22177330 TeleFax.West Bengal .384 firstname.lastname@example.org@gems. HLL Debasis. Dabur 67 . 3rd Floor. 22827411 Bangalore Ph : 080-25592544. India Tel No.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Mehsana .com Mr. 25091103. 22469130 Mumbai office Ph : 022-22870622.700071. :+(91)-(33)-22177328. Middleton Row. Gem Forgings Private Limited gem.vsnl. 25592570. 22177329. 25091104 12.net. :+(91)-(33)-22177333. Gujarat INDIA Phone no : +(91)-(2762)-259331 Mobile no :(+91) . Shashank Garg Address :10/C.com yashmi email@example.com.
Kozhikode673032. K. Brothers 366981/306662 68 . South Beach Road. Moosakoya & Co.673001 9/526. Near Madurai. Koyassam Koya Road. No 1. NAME Mr.Court Road. 4. Kozhikode. Pullikede Kollam .Achrekar & Sons. 6. P Prabhakara Nadar. C. 2.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Annexure III List of organizations/customers contacted over phone/direct Sl. 9/282. 365562 8. Raghuram PHONE NO 04563 – 226208 09443162878 64155 0474 – 742176 741776 61129/62424 ADDRESS Rajapalayam. 3.B. Swamy Oil Induatries K. . Copra Bazaar. Mr. 5. Kozhikode-673001. V. 6 South Beach Road. Tamil Nadu . Gujarati Street.691001 P. Kozhikode673001 11/317-A. 156. Parmanand Gulab Chand & Co 366216/301834 82847/61871 7. Solar Products traders.K.B.626133 Gujarati street. 9/494. Hemaraj Ookeda & Co. NO. Copra Bazaar. Kozhikode673001. Kozhikode-673001.
R. Koomapatti Taluka: Srivilliputhur Dist.O. Business Development Email: manish@nifindia. 69 . – Virudhunagar – 626133 Tamil Nadu Ph: 04563 – 82239 Mob: 09443556966 Collaborator – Mr. Ramasamiapuram. Virattipathu.J.16994 Manish Vaidya . 5. B. J.com Swati Chadha – Fellow.org Mr. ILLAM. 98253. Value Addition and Research Development Email: mvaidya@nifindia. Madurai 625010 Tamil Nadu. P. Business Development NIF Email: swati@nifindia.National Coordinator. 4.134.M Nagar.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Annexure IV Important contacts for the successful completion of the Business plan 1.org Ph: 98253-16992 2. Kulalar Street. Jeyasaleen S/O Ramiah Nadar. Manish Saxena . P.P.National Coordinator. Vivekanandan SEVA 43 – T.org Ph. Innovator – Mr. Ph: 0452 – 2380082 Email: numvali@vsnl. 3.
70 . Nehru Park Vastrapur. 2377266. of India . Ranjan – Fellow. Ahmedabad 380 015 Gujarat.Registered Office National Innovation Foundation. 12. Kochi . Kerala Tel – 0471 – 2324287 / 311882 Email – firstname.lastname@example.org 7.626133 Ph: 04563-226208 Mob: 09443162878 7. Mr.com Coconut Development Board: Govt. Raghuraman – Ist Customer Rajapalayam. 11. India B4. NIF email: ranjan@nifindia. Kerala Bureau of Industrial Promotion Nandavanam Palayam Thiruvananthapuram.682 011 Kerala Ph: 0484-2376265. 2377267 NIF . Kera Bhavan. Business development.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT 6. Ravi Niketan. Tamil Nadu .Ministry of Agriculture.
COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Annexure V Layout and Floor plan for the Manufacturing Area WELDING MACHINE 8 Feet 20 Feet E N T R A N C E PAINTING FITTING SHOP T O O L S 18 Feet 30 Feet FINISHED GOODS RAW MATERIALS P O W E R 11 Feet 14 Feet 20 Feet 8 Feet 42 Feet 71 .
business plans. a university member discussing his/her invention with an interested company. and/or confidential to that party (the "Information"). documents. Representative of Mr. for example. samples. by the disclosing party 72 . certain internally generated data. including new product development initiatives.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Fig – 4: Layout of the Manufacturing Area Annexure VI TECHNOLOGY TRANSFER DOCUMENT Warning: The purpose of this document is to protect parties that wish to exchange information and maintain confidentiality. the parties agree as follows: Each receiving party agrees to accept in strict confidence any and all Information disclosed orally and/or in writing. or made available to it. The agreement binds both parties to secrecy and it is used to allow the parties to evaluate the intellectual property for potential licensing without obligation. Jeyaseelan (hereinafter "Innovator") and_____________________________ (hereafter the "undersigned") have disclosed and plan to continue to disclose to each other certain data. (the "Information") regarding new product development work involving: _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ In the course of the parties' discussion. In consideration of the disclosure of such information by each party to the other. research and information. and business objectives. materials. materials. Innovator has and may disclose to the undersigned for evaluation purposes only. samples. specifications. R. and the undersigned may disclose to Innovator for purpose of negotiating mutual development contracts. and/or other information which is competitively sensitive. specifications. proprietary.
or access to. each receiving party hereby agrees not to chemically analyze. agents. It will make reasonable efforts to transmit the Information to and receive the Information from a representative to be designated by Innovator and the undersigned. press releases. approved. without the use of. The confidentiality obligations outlined in this Agreement shall not be binding on each receiving party with respect to any Information which: Is rightfully in the possession of the receiving party at the time of disclosures. or representatives of the receiving party independently and as a result of its own efforts. or otherwise reverse engineer any materials or samples provided by the other disclosing party pursuant to this Agreement. without first obtaining the written consent of the disclosing party. and any discussions respecting a future business relationship. or consented to by either party hereto which discusses a possible relationship with the other party or any of the Information. Is obtained lawfully by the receiving party. each receiving party agrees to the following: It will limit disclosure of the Information only to its employees. In addition. the parties hereby agree to hold in strict confidence the terms of any agreement. by the disclosing party as proprietary and confidential. Is or becomes known to the public generally through no fault or other action of the receiving party. agents or consultants who require the information for the performance of their duties and in any event. unless otherwise signed. the Information received from the disclosing party. other than as required for quality evaluation purposes and any information resulting from such analysis shall be considered confidential Information subject to the terms of this Agreement. other than Information subject to an obligation by the third party to keep such Information confidential. Without limiting the foregoing in any way. 73 . The reviewing party shall not disclose it to any third party. or Is developed by the employees. formal or otherwise. release or broadcast. shall mutually be agreed to by both parties prior to publication. made. directly or indirectly. or broadcasts prepared. disclosure to consultants shall only be made pursuant to a confidentiality obligation respecting such disclosures to said consultants.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT respecting the Information and which is designated. representatives. In order to minimize the inadvertent disclosure of the Information. either on its face or in a separate writing mailed or otherwise provided by the disclosing party to the receiving party within ten (10) days of any non-written disclosure. Any public statements.
This Agreement contains the entire understanding hereto relative to confidentiality of the Information. except as specified in this Agreement. R. each receiving party agrees not to use any Information of the disclosing party for its own benefit for a period of five (5) years after disclosure of such Information. This Agreement shall be retroactively effective to the earlier of either a) The date of first disclosure of Information by either party to the other party hereunder. without the necessity of proving actual damages. Or b) The first disclosure by Innovator of the same Information. by license or otherwise. Each receiving party recognizes and agrees that nothing in this agreement shall be construed as granting any rights to a receiving party. The parties hereto acknowledge that no remedy at law for damages may be adequate to compensate for a breach of the provisions set forth in this Agreement and that any party injured by such breach may be entitled to temporary or permanent injunctive relief against any such breach.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT It will destroy all written Information received from the disclosing party or which incorporates or references any Information of the disclosing party at the request of the disclosing party. The terms and conditions contained in this Agreement shall be governed by and construed in accordance with the Innovator – Mr. ACCEPTED AND AGREED TO: Company: _____________________________ Signature: ____________________________ Name: _________________________________ Title:________________________________ Date: ________________________ 74 . Jeyaseelan. the parties have signed this letter I the space herein provided by an officer duly authorized. Unless otherwise agreed in writing signed by both parties. The parties agree that permanent or temporary injunctive relief shall in no way limit any other remedies to which the injured party may be entitled as a result of any such breach. In order to indicate acceptance of this above-mentioned terms and conditions. to any Information of the disclosing party. This Agreement may not be amended or supplemented except in a written agreement signed by both parties.
Government of India aims to recognize. A great amount of encouragement should be there from the government of our country to help these types of innovations. respect and reward grassroots technological innovators and outstanding knowledge 75 . R. Along with a greater share of increased productivity.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT INNOVATOR – Mr. there is a chance for higher income being given to workers. NIF. Jeyaseelan Subject: Technology Transfer Signature: ____________________________ Date: ________________________ 3340% CONCLUSION Impact of this innovation on workers who dehusk millions of coconuts manually all over the world can be tremendous. is an issue that needs further exploration. Involvement of women is appreciable but whether opportunities for them will arise only when piece rate wages go down. established by the Department of Science and Technology.
com www.coconutdehusking.com www.org. Maheshwari. BIBLIOGRAPHY Books: Philip Kotler.COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT experts.in www.disha.N.nifindia.google. in turn.co. which finally leads to the growth in the GDP of our country.businessplan. This. Financial Management S.org www. Marketing Management Khan.com Magazines: Honeybee – Vol 15(2) June 2004 76 . will help the production with ease.scai. Managerial Accounting Jain & Narang. Management Accounting Websites: www.lakshmioil.in www.
COCONUT DEHUSKER BUSINESS PLAN DISHA PROJECT Husking Millions of Coconuts Jeyaseelan’s Way 77 .
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