ARECA PALM LEAF PLATE- A BUSINESS

MODEL
SRP Submitted in partial fulfilment of the requirements for the award
of the Degree

Of

MASTER OF BUSINESS ADMILISTRATION

OF

ACHARYA BANGLORE BUSINESS SCHOOL

By

Kavya D N

19YUCMD081

Under the Guidance

Of

DR.V P SRIRAM
ASSOCIATE PROFESSOR

ACHARYA BANGLORE BUSINESS SCHOOL

2020

1
 DECLRATION BY THE STUDENT

I hereby declare that ‘‘ARECA PALM LEAF PLATE- A BUSINESS MODEL’’

is the result of the project work carried out by me under the guidance of Dr.V P
Sriram in partial fulfilment for the award of Master’s Degree in Business
Administration by Acharya Banglore B School.

I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any other or institute for the award of any other Degree or
Diploma or Certificate.

Place: Signature:

Name: Kavya D N

Date: Register Number:

19YUCMD081

2
 CERTIFICATE OF ORIGINALITY

(To be given by the Institution on its letterhead)

Date :

This is to certify that the SRP titled ‘‘ARECA PALM LEAF PLATE- A
BUSINESS MODEL’’ is on original work of Ms Kavya Durgappa Nagannanavar
being submitted in partial fulfilment for the award of Master’s Degree in Business
Administration of Banglore University. The report has not been submitted earlier
either to this Institution for the fulfilment of the requirement of a course of study.

SINGATURE OF GUIDE SIGNATURE OF

DIRECTOR

Date : Date :

3
 ACKNOWLEDGMENT

I take this opportunity to convey my sincere thanks and gratitude to all those who
have directly or indirectly helped and contributed towards the completion of this
project.

The success of any project study depends upon a number of factors among which
the proper guidance received from the experts in the industry and teachers play an
important role.

I take here a great opportunity to express my sincere and deep sense of gratitude
Dr.V P Sriram. for giving me an opportunity to work on his project. The support
and guidance from sir were of great help and it was extremely valuable. I would
like to express my gratitude to sir for his constant support and encouragement. I
would like to express my gratitude and thanks to DR. HR VENKATESHA
(DIRECTOR), for his constant and encouragement without his outright and
energetic motivation, support and prompt response. It would not have been possible
to do any justice as well as bring authenticity to the project.

Finally, I want to thank everyone for their constant support and encouragement.

4
 TABLE OF CONTENTS

CHAPTER. PARTICULAR PAGE.NO

NO

01 INTRODUCTION 6-13

02 SOCIAL RELEVANCE 14-15

03 ENTREPRENEURIAL OPPORTUNITIES
AND BUSINESS PLAN 16-38

04 REVIEW OF NATIONAL AND

INTERNATIONAL SCENARIO 39-42

05 CHALLENGES 43

06 CONCLUSION 44

07 BIBLIOGRAPHY 45

5
CHAPTER 1

INTRODUCTION

India is land of agriculture where it provides employment opportunities as well as

it is a supplier of raw materials to the manufacturing industry. Now days,
Government has banned the use of plastic and polymer products. Therefore there is
a greater demand for eco-friendly products. By seeing all these aspect, we as a small
scale manufacture focused on eco-friendly products like "Areca palm leaf plate-as
a business opportunity". This Enterprise is a proposed micro enterprise for the
manufacture of Palm plates. It is a sole proprietary concern.. Now a day the
importance of biodegradable materials is very high since polyethylene wastes poses
severe threat to the universe. The disposable plates and food packing materials
manufactured from easily available areca nut palm leaves is a better substitute for
disposable polythene and paper plates. There is an ever increasing demand for these
items.

The business opportunity is considered as eco-friendly because, In India almost 4

hectare of areca crop has been cultivated, nearly about 5400 million areca leaves
are shredded and treated as agro waste. One areca leaf plate manufacturing unit
needs 70,000 leaves per year. In this scenario near about 80,000 plates
manufacturing units can be established all over India. 3 lac fresh employments can
be given in 80,000 units.

This Particular project can create “A Rural employment revolution” in India. so

for this reason leaves can be converted as a value added product where there is a
high demand for the eco-friendly product so we started with the manufacture of
areca palm leaf plates because they are the replacement of thermal coal plates, paper
plates and plastic plates. Areca plates are eco-friendly, they are completely made
up of organic materials, which is a fallen leaf collected from areca palm tree. The
use and throw areca leaf plates are made up of areca leaf are 100% biodegradable
and compostable. These are hygienic, non-odorous, non toxic, light weight Plates
are made up of areca leaf and these are environmental friendly. An economical

6
disposal alternative for all catering occasions.

Utensils like dishes, glasses are made from plastic-thermocol these days which are
used in various functions like marriages, birthdays etc. However, these plates and
glasses are not environment friendly at all. But recently, dishes made
from sugarcane waste and Areca nut leaves are getting attention in the market
because of their environment friendly nature. These elegant, disposable party plates
made from Areca leaf are an eco-friendly alternative to conventional disposable
plates. These biodegradable areca leaf plates are a natural and renewable
resource. Areca Leaf that are naturally discarded from the areca tree are collected
from the forest floor and no trees are cut.

These eco-friendly dishes are 100% disposable and not harmful for the cows and
buffaloes. They are easy to wash and comfortable while traveling. The disposable
plates and bowls are an alternative to plastic and paper plates. The products are
natural, compostable and biodegradable yet look stylish. The demand is high within
the country too.

Until the end of the last decade, environment-friendly and sustainability were not a
deciding factor in our purchases. But now we’ve started realizing the devastating
effects of plastic products and day-by-day becoming more environmentally
conscious.People thinking has changed in consumption. They want to keep up our
earth free from plastic pollutants. So, they want to make a more eco-friendly choice
over unsustainable options. ecofriendly disposable plates are easy to handle and
dispose of after use. As, There is a large scope for eco-friendly products, where
these products fall under the small scale manufacturing sector where it can be done
with small amount of capital investment with the higher profits.

The Biodegradability Myth

Manufacturers of most biodegradable and compostable dinnerware market their

7
products on the premise that users will compost their used products in their home
composters or will have access to commercial composting facilities. The majority
of such consumers dispose of the used plates into regular trash with the
understanding that it will decompose in the landfills- although the fine print in the
product packaging provides only the potential biodegradability qualities of the
product in controlled conditions. This green washing and misinformation has
perhaps used the confusion of the growing environmentally-conscious consumer to
benefit the manufacturers, while having done nothing for the environment.

Manufacturing process

Our products are manufactured from fallen dry sheaths of Betel nut trees. The areca
sheath when dried will fall from the tree and it is collected from the farms fresh and
used for making products. These sheaths are available in plenty in the South India
region. The usage of these leaves was started from our ancestors. We are only
making them into attractive shapes to meet the different customer requirements .

The arduous specialty would now be able to be changed over into a machine task
to make these holders in exquisite shapes and sizes. With the ban in the use of

8
plastics, there is an increase in the production of areca plates. Existing machine's
tasks devour a great deal of labor, vitality and time. The existing pedal-type
machine, which is used to manufacture bowl/plate from areca leaf sheath, consists
of a set of die-punch, cutter, a foot lever (to lift die), and a frame. It has following
drawbacks: Performance of cutter is unsatisfactory; High manpower is required to
operate machine; Structure of the machine is large; Operation in standing position
is inconvenient especially for physically handicapped persons; Excessive operation
leads to back pain and fatigue; and Die shapes are not standardized. To overcome
all these drawbacks we have proposed Automatic Areca Nut Plate Making
Machine. This machine is essentially proposed for expanding the efficiency and
diminishing labor in the generation of areca leaf plates. Furthermore, the
manufacturing of plate is automatic and the owner likewise gets the tally of the
aggregate sum of plates produces on his cell phone via Android Application and
the owner could also control the cylinder using that application in case of any error
occurred. Android Application also provides customer support to contact the
manufacturers in case of any failure.

Machine Operation

New hand-operated machine is clamped on a bench using 4 nuts and bolts, and
machine becomes ready for use. It is recommended that before start of operation,
heating of die-punch has to be done. Die-punch set can be changed depending upon
availability of raw material and market demand.

Electricity-based Machine

In electricity-based machine, to produce a single product, initially thermostat for

both die and punch must be adjusted to required temperature. Temperature and time
of production required to produce a single product varies with product size. After
cutting raw material in a predefined size, product has to be put in machine for
shaping. After placing raw material, punch has to move with hand wheel and to hold
punch for a particular time, one lock is fitted at upper supporting plate.

9
Advantages of palm leaf plate:

• Extra Income to areca nut farmers

• Made from the leaves and sheath of palm trees which are considered as
waste product of product. Therefore no cost incurred on its raw material.

• Alternative of plastic plates which are non biodegradable

• Save the environment from the pollution as plastic is non biodegradable.

Eco Friendly

• Plates can be used as fertilizers as these are biodegradable

Development of a suitable technology has been one of the biggest achievements of

Areca-nut Leaf Plate Manufacturing Project (ALPMP). The technology developed
for and employed in the project has negated the issues of production challenges that
occurred due to humid weather conditions, and low quality and fungus prone
products. A major attraction of this initiative is the innovative and environment
friendly product, which is also available in multiple sizes and in smart designs. In
order to expand the scope of the project and to 4 ensure smooth operation of the
units, the project invested extensively in training and workshops for the
entrepreneurs. The most distinguished achievement of the project lies in its ability
to develop entrepreneurial spirit among the rural unemployed youth, by providing
them a dignified livelihood generation activity. It is providing a subsidiary
occupation along with farming, ensuring year long employment for the rural
population since agriculture is a seasonal activity in the state.

Features:
• Unique
• Variegated sizes
• Intricate designs
• Hygienic & Odourless
• Do not alter taste of the food on the plate

10
 • Freezer, Microwave & Oven Safe
• Leak Proof
• The strongest and most heat tolerant disposable plate
• Economical & Commercially Viable
• Biodegradable, Compostable & Sustainable
• 100% Natural, Non-Toxic & Organic
• Naturally biodegrade within 6-8 weeks
• After use, it can be utilized as cow fodder

Areca leaf plates are made from the naturally shed leaf sheaths of Areca Nut Tree.
The areca leaves are simply collected, pressure washed, scrubbed, sun dried and
then with the application of heat and pressure formed into appropriate shaped
plates. Plates once used can be used as a good fertilizer which enhances plants
growth, a good source of organic manure. The disposable plates and bowls are an
alternative to plastic and paper plates. The products are natural, compostable and
biodegradable yet look stylish. The demand is high within the country too.
Areca leaf plates are good replacement of thermocol plates, paper plates and plastic
plates as they are eco-friendly. They are made in India and exported all over the
world. So, there is a large export market for areca plates. Areca Leaf Plate exporters
in India supply these plates which are in supreme demand owing to their low cost
and solid construction on top of it environmental friendly nature. The products are
made from high-quality leak proof and defect free palm sheath.

Literature Review

1. Kalita, P,Dixit U S, MahantaP, Saha, U K (2008)

An efficient, high performance and user-friendly hand-operated machine for bowl

and plate manufacture from areca palm leaf sheath has been designed. New
machine is very effective, as production time of bowl (15 cm diam) has reduced by
50% and that of plate (30 cm diam) by 30% in comparison to existing pedal-type
machine. Cost of new machine is 50% less than existing machine

11
 2. Chowdhury, Kirti (2020)

With the ever-expanding awareness of biodegradable tableware, exporting Areca

leaf plates to build an eco-friendly environment is our primary initiative. These
plates are excellent substitutes for glassware or plastic ware. The present study
makes an effort to understand and know the process of preparation of utensils from
the sheath of areca nut tree and to identify the advantages of areca leaf made utensils
compared to plastic made plates. Further, an assessment of the recent trend of
export of areca leaf-made utensils along with related aspects and benefits associated
with encouragement of areca industry has been done as part of the study. Findings
indicate that Areca leaf made utensils have very high environmental and aesthetic
value. However, inspite of having multiple benefits of areca leaf made utensils it
does not occupy a satisfying market position. Promotion of areca industry can help
to create employment opportunities for the local people and it indirectly helps to
develop craft skills of the local people. Therefore, the present study will help
support further research studies and policymaking in this sector that combines both
environmental sustainability and rural economy.

3. Sreevalsa Kolathayar, C. A. Aravind & Sitharam TG (2019)

In this paper, the possibility of using naturally available low-cost areca leaf sheaths
as an alternative to the commercially available HDPE geocell has been explored by
conducting the laboratory model footing tests on soft soils. The experimental results
proved that the provision of areca leaf sheath as an alternative to the HDPE geocells
as soil reinforcements improved the bearing capacity of the soil considerably. The
bearing capacity of the soil reinforced with areca cell and areca grid was found to
be increased by approximately 1.25 times compared with that of the soil reinforced
with commercially available geocell and geogrid. The increase in bearing capacity
of the soil reinforced with areca cell and areca grid was almost four times compared
with that of unreinforced soil. The experimental results were found to be in accord

12
with the analytical formulation considering the factors such as lateral support
reaction, vertical stress distribution reaction and grid reaction.

4. Oi Ka Jong, Tze Mi Yong and Muharam Rafidi Jaafar

Areca leaf sheath has been used traditionally to produce disposable plates and
bowls in India for decades. This project aims to produce disposable takeaway food
containers by using the fallen Areca leaf sheath. In order to achieve the aim, a press
mold is self-designed and fabricated, and installed into a disposable paper plate
press machine to form the sheath into container shape. The density of the sheath is
0.423 g.cm−3 and 0.391 g.cm−3 before and after press respectively. The moisture
content percentage obtained before heat press is 19.19%, while after press is 5.01%.
The sheath at its sheath line direction shows higher stiffness, which is 416.9g.cm,
compared to the perpendicular sheath direction of 65.1g.cm. The sheath has a water
absorption rate of 0.021g.min−1, which fulfils the purpose of disposable food
packaging to contain foods with soup or sauce.

5. Sreevalsa Kolathayar ,CA Aravind &Sanjay Kumar Shukla (2019)

This paper presents the suitability of geogrids made from areca leaf sheaths, as soil
reinforcement. The performance of areca geogrids was evaluated through the model
footing tests and the same has been compared with the performance of synthetic
polymer geogrids as well as coir geotextiles. The effect of embedment depth of
areca geogrid within the sand bed on its bearing capacity was presented along with
the behavior of multilayered areca geogrid-reinforced sand beds. The performance
comparison of areca geogrid-reinforced sand beds with coir geogrid and polymer
geogrid-reinforced sand beds showed that the areca grids provided improved
performance

13
CHAPTER 2

SOCIAL RELEAVANCE
Manufacturing of areca plam leaf plate are not only an business opportunity but
also its an social relevance. The Mechanism followed for manufacturing is 100%
natural and they do not contain any artificial additives or chemical ingredients so
that it has created new trend in catering sector because its vey natural, eco-friendly,
bio-degradable , Hygienic and heat resistant to serve the food .

In manufacturing of plates only fallen leaves are used, thus there is no harm to cut
a trees in the process, which helps in maintaining environment and it is also an
green marketing process. This areca plates are made for use and throw purpose.
Hence areca leaf plates have additional values even after using. Disposal products
can be a good source of organic nature. They can be used as good fertilizer enhances
plant growth they can also be used as a good animal folder. By eating food in these
bio-degradable products helps in avoid the cancer and solves global warming
issues.

By considering all these aspects it can be concluded that areca palm leaf is socially
relevant because it reduces some of the health issues; along with that it create the
entrepreneurial and employment opportunity with the low investment and makes
higher profit

HARMFUL NATURE

14
Disposable plastics used in packaging foodstuff meant for human consumption
contain harmful compounds. Improper disposal of these packaging products leads
to these harmful compounds finding their way to water bodies, where they dissolve
over a long time due to their non-biodegradable nature. Littered plastics are also
harmful to animals because they occasionally eat them and die. Additionally,
plastics fabrication involves the use of potentially dangerous chemicals, which are
added as stabilizers or colorants. Most of these chemicals have not undergone an
ecological risk appraisal, and their impact on human well-being and the
environment is presently vague. One example is phthalates, which are used in the
manufacture of PVC.

ENVIRONMENTAL DEGRADATION

Plastics are generally non-biodegradable; hence, they may take centuries to decay.
This is due to the intermolecular bonds that constitute plastics, whose structure
ensures that the plastics neither corrode nor decompose. Plastics disposed of
indecently get washed away to water reservoirs. They clog waterways and float on
reservoirs, polluting and making them unsightly.

LOW MELTING POINT

Plastics generally have a low melting point, so they can’t be used where heat levels
are high. This also means they cannot be used as protective barrier for furnaces.
Some plastic products are highly flammable — polystyrene, acrylics, polyethylene
and nylons commonly used in packaging, home and office appliances. This makes
them a fire hazard.

DURABILITY

Plastics generally have a short useful life compared to metals. This short life cycle
results in pile-ups of unwanted garbage in the office, home or waste yards.
Although some of the plastics are recycled, most remain uncollected in dump sites

15
and pollute the environment. Additionally, polythene bags are easily carried by
wind, something that makes them almost impossible to collect for recycling.

CHAPTER 3

ENTREPERNEURIAL/ EMPLOYMENT
OPPORTUNITY INCLUDING BUSSINESS PLAN
Employment Opportunity Each Areca leaf plate manufacturing unit provides direct
employment to 3 persons and there is an indirect impact of creating employment
for 2 other persons. Rural area is selected to create employment. Also work shed &
labor will be at low cost

Major markets For Areca Leaf Plates

• First quality plates will be targeted for International market

• Second quality plates will be targeted to local markets like dealers, super
market, restaurants and caterer

These plates act as the best alternative for plastics and because of this reason it has
a good market in international market.

Waste Disposal:

1. Food plates thrown after eating will be naturally degraded within 60 days of
time like any plant matter.

2. Manufacturing waste of Areca sheaths will be used for vermin compost, dry

16
 fodder for animals, bio-fuel bricks.

Marketing

The product has a supply constraint in the market and the demand is very high.
The market is expected to have a sustained higher growth for the coming years.
The Govt. policies, changing trend and sustainable development concept will
increase the importance of the product and its marketability.

Vision & Mission Statement

• Mission: To provide different sizes of processed and good quality fiber

plates as a substitute of plastic which is bio degradable product at
reasonable prices

• Vision: To establish itself in a good condition financially, creating

employment opportunities for our people and save the environment from
the pollution by increasing the production of fibre plate by which customers
will stop the use of plastic plates.

Purpose of the Project

• Extra Income to areca nut farmers

• Made from the leaves and sheath of palm trees which are considered as
waste product of product. Therefore no cost incurred on its raw material

• Alternative of plastic plates which are non biodegradable v. Provide gainful

employment to its members.

• Provide assured quality to consumers at a very competitive price

• Save the environment from the pollution as plastic is non biodegradable.

• Plates can be used as fertilizers as these are biodegradable.

17
 MARKET POTENTIAL:

There is a good market for Areca plam leaf plates as they are disposable and do
not require any maintenance and cleaning. This product is not only useful in
marriages and other social functions, but also in hotels and road side eating
houses. Since the demand is increasing, with the increase in different types of
functions and ceremonies at establishment of hotels, messes and road side
eating houses, there is no difficulty in marketing the product.

Business Model and Strategies:

Raw material from own
areca nut palm plant

Extraction of sheath and

manufacturing of Products

Product for sale in the Product for sale in the

premises of the Society. local market.

SWOT Analysis

1. Strengths:

18
 • Shifting of people from plastic products to bio degradable products.

• Market readily available for product.

• Support from all state as well as from Central Government for production
of substitute of plastic and will save the environment from pollution.

• Can produce good quality of fiber plates as raw material used for its
production is considered as waste for existing plant

• Plates can be used as fertilizers after use.

2. Weakness

• Small working capital available and new product in market so cannot

grow high price fiber plates in a short span of time.

• Own transport facility not available.

• Low margin as manufacturers cannot sell directly in market.

3. Opportunities

• India looking for the substitute of plastic.

• Good profit margin in fish export.

• Good market for these biodegradable plates.

• Support from Central and State Government.

4. Threats

• No favorable temperature for the cultivation of areca nut palm tree.

• Low cost and low quality of plastic plates.

Manufacturing Process:

19
One unit consists of 2 Hydraulic Machine based heat-press machines replaceable
dies of different sizes, and one gas based dryer. Store rooms (office rooms) are used
for the purpose of stocking up raw materials and finished products. There is also a
requirement for water tanks in order to clean up the sheaths prior to initiating the
production process.

Economic Feasibility:

• Extra Income to areca nut farmers

• Alternative of plastic plates which are non biodegradable.

• Save the environment from the pollution as plastic is non

biodegradable.

• Eco Friendly.

• Plates can be used as fertilizers as these are biodegradble.

20
 • The product has a supply constraint in the market and the demand is
very high. The market is expected to have a sustained higher growth
for the coming years

Organizational Feasibility:

• The Organization has sufficient infrastructure for this project like

land as they are already doing the cultivation of Areca palm tree.

• Organization has 30 members who are already working for the other
projects and their revenue is around 15.00 lakhs per annum.
Therefore project seems to be viable.

• Organization has recruited staff of 3 trained members for this project

that is sufficient for the proper working of this proposal.

• As the recruited staff is already trained. Therefore in future they will

treated as a master trainer for the future staff trainer.

Financial Feasibility:

• Total project cost estimated is to be Rs.6.52 lakh, which does not include
the cost of the land as project members have their own land.

• Total Fixed Capital-Rs.3.61 lakh

After observing its profit and financing sheet through annexure project seems to
viable.

Technical Feasibility:

• As there will be no shortage of raw material as it is easily available from

the owner of this project. Therefore from this point it is viable.

• Machine for processing of Palm tree sheaths are easily available. Therefore
from this point it is also viable. 12

21
 • The product has a supply constraint in the market and the demand is very
high. The market is expected to have a sustained higher growth for the
coming years. The Govt. policies, changing trend and sustainable
development concept will increase the importance of the product and its
marketability.

• Therefore it is technical feasible and we can run this project

Plan, Implementation, Monitoring And Evaluation Marketing (PIME)

Land & Building

The unit will be set up in a owned land of the society which will be used for the
cultivation of areca palm tree, for setting of water tank and its office area is used
for storage. The power, Communication facility etc. are available. Hence without
doubt one can say that the site selected is very suitable for these types of units.

Plant & Machinery

The plant & machinery are enlisted in the economics of the project. They include
sewing machines, embroidery machines, furniture, cutting table etc. The selected
machinery can be made available from authorized suppliers of these items. Machine
spare parts and maintenance will be available on demand. Each machine has 3 dies
of different sizes, which can be easily interchanged and attached to any machine.
The parts of the machine are also flexible and can be easily replaced or repaired. A
dryer was developed recently in order to support the production processed during
even in the rainy season. The basic units have a capacity to process 1,74,000 pieces
of areca-nut sheaths per annum.

22
Storing facility:

The sheaths need to be sun dried and stored before production. The sheaths can be
stored for 9-12 months in a room with concrete posts, sand floor, bamboo based
wall and platforms for keeping the raw materials. TPMPL also has good storing
facility for finished products. After proper packaging, those can be stored for more
than 6 months.

Cleaning of sheaths: Just before starting the production process, the sheaths are
carefully cleaned in the water tanks and dried while taking care to retain their
moisture content. A specially designed bio gas based dryer is used for this purpose
during rainy seasons.

Raw Material

The raw materials needed include sheath of areca palm tree of different sizes. They
are easily available and care will be taken on the quality of the same.

Staff Labour:

The unit will be operated in one shift. The staff and labors needed for the unit will
be selected from locally and all those employees are trained.

Other Expenses:

23
The probable other experiences are considered in the economics of the project.
They include water, electricity charges, communication, maintenance, postage &
stationery etc.

Project Cost and Financing

Total project cost has been estimated to be Rs. 6.52 lakhs.

Detailed breakup is given below:

S.No Particulars Quantity Amount

1 Machine(including dryer) 1 250000
2 Water Tank, Pump Set and Plumbing works L 25000
3 Building 50000
(a) Machine Room 18000
(b) Storage Room 0
4 Other equipment and material 8000
5 Misc Furniture and fixture 3000
(a) Preliminary and pre-operative expenses 5000
(b) Electricity Connection 2000
Total Fixed capital 361000

Working Capital (In Rs.):

S.No Salary /Month(Rs) Salary/An num

Proprietor cum Manager 8000 8000 96000
Skilled labour 6000 12000 144000
Total 20000 240000

24
Utilities and contingencies

Project Viability

S.No Utilities and contingencies Per Month Per annum

1 Power charges 1000 12000

2 Travel exp / Transport 500 6000
3 Repairs and Maintenance 800 9600
4 Insurance 400 4800
Based on
5 Telephone charges 300 3600
certain realistic

6 Stationary and postage 600 7200

7 Miscellaneous expenses 400 4800
8 Water Charges 300 3600
Sub Total 4300 51600
assumptions the future cash flow of the project has been also worked out. The
Internal Rate of Return (IRR) worked out to be healthy 32 % signifying that the
Project will be able to generate the revenue to cover all the costs incurred in project.
Also average Debt Service Coverage Ratio (DSCR) is worked out to be 1.95 which
signifies that project will be able to generate significant revenue to easily repay its
debt/ loan. Hence, the project is financially viable.

25
DATA ANALYSIS AND INTERPRETATION

Resulting to social event the basic discretionary data huge with the ultimate
objective of this endeavor work, it was planes to accumulate the basic data
furthermore on the themes/subject to a
model examination. Along these lines a proper survey was arrangement to get the
viewpoints impression of respondent on significant edges. A copy is set at
annexure.
QUESTIONNAIRE DESIGN
The review was arranged so the underlying five choices are identifying with the individual
data which are Strongly Agree, Agree, Neutral, Disagree, Strongly Disagree

No. of Respondents based on Gender

Sex Total Percentage %

Male 61 61%
Female 39 39%
Total 100 100%

Gender

Female
39%

Male
61%

Interpretation

26
From the above table it can be inferred that 61% of the respondents are male and
39% of the respondents are female. It is inferred that majority 61% of the
respondents are male.

No. of Respondents based on Profession

Profession Total Percentage %

Businessman 23 23%
Employee 24 24%
Student 52 52%
Others 1 1%
Total 100 100%

Profession
Businessman Employee Student Others

1%

23%

52%

24%

Interpretation:

From the above graph, it can be inferred that,23% of the respondent are
businessman, 24% are employee, 52% respondent are students and 1% are from
other profession. It is inferred that majority 52% respondents are students.

27
 Location of respondents

Location Total Percentage %

Rural 38 38%
Urban 36 36%
Metropolitan 26 26%
Others 0 0
Total 100 100%

Location
Rural Urban Metropolitan

26%
38%

36%

Interpretation:

From the above graph, it can be inferred that,38% of the respondents are from Rural
area, 36% are from Urban and 26% respondents are from Metropolitan. . It is
inferred that majority 38% are from Rural area

28
 Family Income

Family income Total Percentage %

Below 10,000 14 14%
11,000 to 20,000 17 17%
21,000 to 30,000 32 32%
More than 30,000 37 37%
Total 100 100%

Family Income
Below 10,000 11,000 to 20,000 21,000 to 30,000 More than 30,000

14%

37%
17%

32%

Interpretation:

From the above graph, it can be inferred that, 14% of the respondents Income
belongs to below 10,000, 17% of the respondents belongs between 11,000 to
20,000, 32% of the respondents belongs to 21,000 to 30,000, 37% of the
respondents belongs to more than 30,000. It is inferred that majority 37% of the
respondents belongs to more than 30,000

29
 Do you aware of Eco-friendly products like areca leaf plates?

Aware of areca leaf plates Total Percentage %

Yes 63 63%
No 22 22%
May be 15 15%
Total 100 100%

Aware of areca leaf plates

May be
15%

No
22%
Yes
63%

Interpretation:

From the above graph it can be explained that 63% of the respondents are aware of
areca leaf plates, 22% are not aware of it and, 15% respondents are may be aware
or no. It is inferred that majority 63% of the respondents are aware of areca leaf

30
 Do you agree that areca leaf plates are Eco-friendly?

Areca leaf plates are Eco-friendly Percentage %

Total
Yes 71 71%
No 10 10%
May be 19 19%
Total 100 100%

Areca leaf plates are Eco-friendly

Yes No May be

19%

10%

71%

Interpretation:

Found nearly 71% of the respondents agrees that areca leaf plates are Eco-friendly,
10% of the respondents says No and 19% are may be agree or no. It is inferred that
majority % of the respondents agrees that areca leaf plates are Eco-friendly

31
 Which type of plates do you prefer occasionally?

Plates Responses prefer occasionally

Total Percentage %
Plastic plates 33 33%
Polymer plates 17 17%
Areca leaf plate 45 45%
Others 5 5%
Total 100 100%

Plates Responses prefer occasionally

Plastic plates Polymer plates Areca leaf plate Others

5%

33%

45%

17%

Interpretation:

Found nearly 33% of the respondents prefer Plastic plates occasionally. 17% of the
respondents prefer Polymer plates occasionally, 45% of the respondents prefer
Areca leaf plate occasionally, 5% of the respondents prefer other plates. It is
inferred that majority 45% of the respondents prefer Areca leaf plate occasionally

32
 Are you interested to buy areca palm leaf plates?

Respondents Interested to buy areca leaf plates

Total Percentage %
Yes 61 61%
No 13 13%
May be 26 26%
Total 100 100%

Respondents Interested to buy areca

leaf plates
Yes No May be

26%

13% 61%

Interpretation:

Found nearly 61% of the respondents are interested in buying areca leaf plates,
26% are not interested in it and 26% may buy or may not. It is inferred that majority
61% of the respondents are interested in buying areca leaf plate

33
 In functions, which type of plates prefer most?

Type of plates respondents prefer

Total Percentage %
Use and throw 25 25%
Washable 16 16%
Eco-friendly 29 29%
Both 1&3 30 30%
Total 100 100%

Type of plates respondents prefer

Use and throw Washable Eco-friendly Both 1&3

25%
30%

16%

29%

Interpretation:

Found nearly, 25% of the respondents prefer use and throw plates in functions,
16% prefer washable, 29% prefer eco-friendly and 30% of the respondents prefer
both use and throw plates and eco-friendly plates. It is inferred that majority 30%
of the respondents prefer both use and throw plates and eco-friendly plates in
functions.

34
Kindly rate the below mentioned statements from 1 to 5 wherein; 1-Strongly
agree, 2-Agree, 3-Neutral, 4-Disagree, 5-Strongly disagree

Do you agree that, buying rate of areca leaf plate increases according to
season?

Ratings Total Percentage%

Strongly agree 20 20%
Agree 27 27%
Neutral 28 28%
Disagree 17 17%
Strongly disagree 8 8%
Total 100 100%

Ratings
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly
disagree

Interpretation:

From the above graph it can be explained that 20% of the respondents strongly
agrees, 27% respondents agrees, 28% are neutral, 17% of the respondents disagrees
and 8% of the respondents strongly disagree.

35
Do you agree that, Sales of Eco-friendly plates are higher than that of plastic
or Other plates?

Ratings Total Percentage%

Strongly agree 12 12%
Agree 28 28%
Neutral 36 36%
Disagree 17 17%
Strongly disagree 7 7%
Total 100 100%

Ratings
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly
disagree

Interpretation:

From the above graph it can be explained that 12% of the respondents strongly
agrees, 28% respondents agrees, 36% are neutral, 17% of the respondents disagrees
and 7% of the respondents strongly disagree.

36
Do you agree that, both hot and cold food can be served through eco-friendly
plates?

Ratings Total Percentage%

Strongly agree 21 21%
Agree 21 21%
Neutral 37 37%
Disagree 12 12%
Strongly disagree 9 9%
Total 100 100%

Ratings
40

35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Interpretation:

From the above graph it can be explained that 21% of the respondents strongly
agrees, 21% respondents agrees, 37% are neutral, 12% of the respondents disagrees
and 9% of the respondents strongly disagree.

37
 Do you agree that, In COVID-19 use of areca plates has increased

Ratings Total Percentage%

Strongly agree 14 %
Agree 26 %
Neutral 36 %
Disagree 13 %
Strongly disagree 11 %
Total 100 100%

Ratings
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly
disagree

Interpretation

From the above graph it can be explained that 14% of the respondents strongly
agrees, 26% respondents agrees, 36% are neutral, 13% of the respondents disagrees
and 11% of the respondents strongly disagree.

38
 Do you agree that, usage of water can be reduced by using areca plates

Ratings Total Percentage%

Strongly agree 24 24%
Agree 26 26%
Neutral 29 29%
Disagree 10 10%
Strongly disagree 11 11%
Total 100 100%

Series 1
35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly
disagree

Interpretation:

From the above graph it can be explained that 24% of the respondents strongly
agrees, 26% respondents agrees, 29% are neutral, 10% of the respondents disagrees
and 11% of the respondents strongly disagree.

39
CHAPTER 4

REVIEW OF NATIONAL AND INTERNATIONAL

SENARIO
National scenario:
• India is leading producer of Arecanut in the world.
• In India Karnataka leads other states in production, which is at whopping
47%.
• Again, in Karnataka, Shimoga ranks first in area and production, 23% and
21%, respectively. The nut derived from dried arecanut fruit is called
Arecanut, Supari, Betelnut.

The disposable tableware is mainly made from paper, pulp, Polyethylene

terephthalate, polyethylene, Starch Blends, biodegradable CPLA, PLA and Talc,
etc. including the disposable plates, disposable bowls, disposable cups and
disposable silverware.
The main applications of disposable tableware are household and commercial use.
Commercial use is dominating the end market, occupy for about 79.6 % of market
share. The Asia-Pacific will occupy for more market share in following years,
especially in China, also fast growing India and Southeast Asia regions.
Compostable tableware’s products are used for serving food. These products are
biodegradable and release valuable nutrients into the soil, aiding the growth of trees
and plants when they breakdown. Compostable plates can be placed into the
compost bin after use. These products degrade within several months in an
industrial composting facility and produce no toxic residues. These plates are
reusable and are made up of renewable resources. These renewable sources are
made from all-natural materials such as agricultural residues, palm leaves, bagasse,
bamboo, and cornstarch-based PLA plastic. These eco-friendly tableware’s are
sturdy enough to hold hot or cold food and easily gets biodegraded after use.

40
Compostable plates and bowls are the perfect solutions for emerging green
businesses. The growing awareness about the adverse effects of plastic such as
massive plastic pollution and its grave consequences on aquatic and aerial creatures
after dumping this product into the sea are the major driving factors for the growth
of compostable tableware market. The increasing demand for safe, sustainable and
environmental friendly cutlery owing to the rising number of fast food restaurants
and cafeterias is boosting the compostable tableware market.
Compostable disposables are a viable alternative that provides the convenience of
disposable plates when used in catering for parties, picnics or other occasions along
with an added advantage of no negative impact to the eco-system. However, the
lack of awareness about the benefits of compostable tableware’s and the poor
management of organic waste hampers the growth of compostable tableware
market. The cost of compostable tableware is also higher as compared to the
traditional disposables. Moreover, the rising enforcement of environmental laws
and the growing need for better waste management is anticipated to create an
opportunity for the growth of compostable tableware market.
Karnataka has a thriving cottage industry of areca ware and there are
reportedly 6,000 large and small “bioplate” factories in the state. In low-tech
workshops, leaf sheaths are collected, washed and pressed into a variety of
shapes using moulding machines. The plates are used at green weddings, temples
and sustainable ventures like the Green Path in Bengaluru, which specialises in
organic food. Owner H.R. Jairam uses the plates for outdoor catering and
processes the waste at his farm outside the city. “It make a healthy compost,” he
said. “All the micronutrients are in it.”
In India 4 lakhs hectors of areca crop has been cultivated. Near about 5,400 million areca
leaves are shredded and treated as an agro waste. One Areca leaf plate manufacturing unit
need 70,000 leaves per year. In this scenario nearly about 80,000 plates manufacturing
units can be established all over India. 3 lakhs fresh employments can be given in 80,000
units. This particular project can create “A Rural Employment Revolution” in India.
At Present only 3,000 units are established all over India, in this 2,500 units are established
by Eco Green unit for self help groups, small entrepreneurs and farmers in India. Due to
plastic pollution and awareness of this kind of Eco friendly Bio degradable items there is a

41
growing demand for leaf plates and cups in global level.
Global Scenario:

Global Palm Leaf Plate Market 2020 by Manufacturers, Type and Application,
Forecast to 2025 comprises the investigation of various components that expand
the market’s development. The report gives a broad analysis of the global Palm
Leaf Plate market covering market size, segmentation, market share, and
competitive landscape. The report identifies various segments of the market such
as product type, end-user, competitive landscape, and key regions in order to
represent the structure of the market. The report comprises restraints, restrictions,
and drivers that change that affect the market. It throws light on current patterns
and noteworthy achievements. The report provides regional and country-level
market size analysis and CAGR estimation of market growth during the forecast
period from 2020 to 2025.

The top countries that constitute to export market for areca leaf plates made
in India are:

• USA (36%)
• Netherlands (17%)
• Germany (16%)
• Spain (10%)
• UK (6%)

The global market for foodservice disposables is anticipated to see a steady growth
between 2017 and 2021. By the end of 2021, the global foodservice disposables
market is estimated to bring in US$ 27,187 Million revenue.
Increasing number of restaurants are using disposable plates, cups, trays, bowls,
etc., to serve various food items. Majority of the restaurants have started providing
catering services, hence the use of foodservice disposables have also increased.
Manufacturers are also providing customized foodservice disposables as per the
requirement of restaurants. Moreover, increasing number of customers have started
using catering services provided by restaurants, especially during celebrations.

42
Meanwhile, in the recent years, retail stores and hospitality industry have also
started using foodservice disposables to provide various food products. A rise in
the number of restaurants in developing countries and popularity of takeaway meals
is fueling the growth of foodservice disposables in Asia Pacific region.
Compostable disposables are a viable alternative that provides the convenience of
disposable plates when used in catering for parties, picnics or other occasions along
with an added advantage of no negative impact to the eco-system. However, the
lack of awareness about the benefits of compostable tableware’s and the poor
management of organic waste hampers the growth of compostable tableware
market. The cost of compostable tableware is also higher as compared to the
traditional disposables. Moreover, the rising enforcement of environmental laws
and the growing need for better waste management is anticipated to create an
opportunity for the growth of compostable tableware market.
Areca leaf is one of many esoteric materials that has wound up in the global
supply chain for the $27-billion disposable tableware industry as a sustainable
alternative to plastic. Areca palm trees are abundant in peninsular India,
where 80% of the areca nut crop is grown. Traditionally, leaf sheaths were
treated as agricultural waste and burned. Their transformation into chic, durable
dinnerware for export is a relatively recent phenomenon. Nobu Matsuhisa, an
acclaimed chef, praised them in a product testimonial saying their “natural and
sleek design is the perfect canvas to showcase any chef’s creations.”
The Global Palm Leaf Plate market report includes all the perspectives of the Palm
Leaf Plate market. The research study provides a broad platform that opens several
gateways to several firms, associations, new startups, and collaborations. The Palm
Leaf Plate research study includes the effects of COVID-19 on the Palm Leaf Plate
market. COVID-19 has greatly impacted the overall global market scenario. The
statistical data and the qualitative information included within this dossier are
reliable and accurate and are updated based on the current market scenario and
trading conditions. Observations and facts about the Palm Leaf Plate market
analysis are brilliantly placed in the report by the research analyst so that Palm Leaf

43
Plate market study is streamlined properly. The market players that are mentioned
in the Palm Leaf Plate market include.

CHAPTER 5

CHALLENGES
1. Raw material demand in rainy season, as the demand goes high in rainy
season raw material cost will also be high at that time.
2. To many competitors
3. Labors
4. No stable market for some months marriage function will not take place.
5. Even if there is no regular order you need to take care of expenses like
rent salary etc.

CHALLENGES IN IMPLEMENTATION
Financial constraints have emerged as the major challenge in setting up of new units
in the region in spite of concentrated efforts by the project for creating financial
linkages with banks and other financial institutions. The inability to procure loan in
most instances is due to numerous reasons like limited capital to extend collateral
security, red tapism involved in obtaining loans, ignorance of entrepreneurs
and attitude of the banks. Most financial institutions expressed doubt on the
viability of the project while sanctioning loans against it for the small time farmers.
Another crucial challenge in implementing the project has been the traditional
attitude of the rural people. The nature of the project allows its functioning from
mainly rural areas. However, for the rural folk, agriculture remains their prime
mode of livelihood, even though the Arecanut Leaf Plate Project provides ample

44
opportunity for economic growth. For most part of the rural Assam, the farmers
have taken up the project only as an additional source of income, to be carried out
only in the non- agriculture seasons. This phenomenon has largely hampered the
growth of the industry in the region.

CHAPTER 6

CONCLUSION
As industrialization is one of the major forces of economic development in any
region, micro and small scale industries play a pivotal role in transforming the
economy The Areca Leaf Plate Manufacturing Project not only provides a viable
employment opportunity for the unemployed youth but also facilitates attainment
of self reliance, equitable distribution of national income and balanced regional
growth. Economic freedom is believed to pave way for regional peace and
integration

And the government has banned the usage of plastic and polymer products, hence
the trend for eco-friendly product has increased, Due to this it has created the
business opportunity. Barring few challenges that exist in all small scale industries,
the project exhibits tremendous potential for capturing both the national and
international market with its unique environment friendly product.

45
BIBLIOGRAPHY

1. Kalita, P,Dixit, U S,MahantaP, Saha, U K(2008) A novel energy efficient

machine for plate manufacturing from areca palm leaf sheath Pages 807-
811,ISSN- 0022-4456
2. Chowdhury, Kirti.2020, Utilisation of bio-diversiy product (Areca leaves)
for preparation of utensils. Clarion: International Multidisciplinary Journal
. Feb2020, Vol. 9 Issue 1, p12-16. 5p.
3. Sreevalsa Kolathayar ,C. A. Aravind & Sitharam TG, Model Tests and
Analytical Studies on Performance of Areca Leaf Cells as Cellular
Confinement in Soil16 Aug 2019, Published online: 26 Sep 2019
4. Bhargav VK and Gaikwad BB 2012. Cutting characteristics of aArecanut
sheath for use as animal fodder. International Conference on Agricultural &
Horticultural Sciences September 14-15, Hyderabad International
Convention Centre, India.
5. Prakash TNK 2012. Arecanut economy at the cross roads. Report of special
scheme on cost of cultivation of arecanut in Karnataka, GoI (GKVK
Bengaluru) 80-81. Sharma KD, Pathania MS and Harbans L2010. Value
chain analysis and financial viability of agro-processing industries in
Himachal Pradesh. Agricultural Economics Research Review 23: 515- 522.
6. Shinoj P, Raju SS, Praduman K, Siwa M, Pawan Y, Vishal ST and
Chaudhary KR 2010. An economic assessment along the jatropha-based
biodiesel value chain in India. Agricultural Economics Research Review
23: 393-404.
7. Sreevalsa Kolathayar ,CA Aravind &Sanjay Kumar Shukla, Performance
Assessment of Areca Leaf Grids for Soil Reinforcement Applications
Published online: 27 Aug 2019.

46
8. Kiran Kumar R. Patil, B. Chinnappa, G.R. Manjunatha and H.S. Sowmya
Eco-friendly Arecanut Leaf Sheath Products: An Economic Analysis Indian
Journal of Ecology (2019) 46(2): 431-436

47