COCONUT DEHUSKER
BUSINESS PLAN DISHA PROJECT
BUSINESS PLAN Submitted to
NATIONAL INNOVATION FOUNDATION (NIF) For
The Commercialization Of
“COCONUT DEHUSKER”
Innovated By
Mr. R. JEYASEELAN
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COCONUT DEHUSKER
BUSINESS PLAN DISHA PROJECT
Submitted by
Team: VASS-IFIM
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
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ACKNOWLEDGEMENT 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. 3
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BUSINESS PLAN DISHA PROJECT
CONTENTS Mission Objective Positioning Statement
8 8 8
1. Executive Summary
9
1.1 Innovators Detail 1.2 Developing the innovation 1.3 Recognition and Awards 1.4 The Product 1.5 Target Market 1.6 Price 1.7 Entry Barrier
9 11 12 12 12 13 13
2. Business Description
14
2.1 About the Business 2.2 Business idea 2.3 Product Description 2.4 Features and Benefits
14 14 14 15
3. Scouting Document
16
4. Evaluation Document
20
4.1 The Product and Technology
20
4.1.1 General Description of Innovation. 4.1.2 Salient features of the machine. 4.1.3 Functional and Operational Performance 4.1.4 Working Principle 4.1.5 Construction 4.1.6 Technical Specification
4
20 20 21 21 22 23
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5. Market Analysis Summary
24
5.1 Marketing Strategy
24
5.1.1 Target Market 5.1.2 Mass diffusion in coastal areas. 5.1.3 Other Parts of the world
24 24 27
5.2 Product Positioning 5.3 Demand estimation – Market Research
28 28
5.3.1 5.3.2
Customer Feedback/Perception Feedback of organizations contacted personally
5.4 Pricing Strategy 5.5 Promotion Strategy 5.6 Distribution Strategy 5.7 Sales Strategy 5.8 Location Plan 5.9 Competitive analysis
28 29 29 30 30 31 33 34
6. Financial Plans and Analysis
35
6.1 Bill of Material 6.2 Total overheads of the workshop 6.3 Costing 6.4 Estimate of working capital requirement 6.5 Financial Projections 6.6 Cost Benefit Analysis 6.7 Operating Costs 6.8 Projected Trading Account 6.9 Projected Profit & Loss Account 6.10 Projected Balance Sheet 6.11 Ratio Analysis 6.12 Return on Investment (ROI) 6.13 Internal Rate of Return (IRR) 6.14 Net Present Value (NPV) 6.15 Break-Even Analysis 6.16 Gannt Chart – Implementation Schedule 6.17 Successful declaration of the Project 6.18 Rights on Know-How and related Matter
5
35 36 36 37 38 40 41 42 43 44 45 47 47 47 48 49 50 50
COCONUT DEHUSKER
7.
8.
BUSINESS PLAN DISHA PROJECT
Manufacturing Section
51
7.1 Advantages of our location 7.2 Production needs 7.3 Quality Control 7.4 Availability and reliability of the suppliers
51 51 52 53
Critical Risks Section
54
8.1 Internal Strengths 8.2 Weaknesses 8.3 Opportunities 8.4 External threats 8.5 Risk Analysis 8.6 Business Risks
54 54 54 54 55 55
9. Strategy for Technology Licensing
57
10. Future Products
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. Layout, floor plan for the manufacturing area Technology Transfer document
60 63 66 67 69 70
Conclusion
73
Bibliography
74
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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
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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. Endeavor has been put to create a Business Plan, which has substance to do with the success or failure of the business.
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
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enhance the productivity. This machine is extremely beneficial for coconut traders and industries.
1. EXECUTIVE SUMMARY 1.1 Innovators Detail Mr.R. Jeyaseelan (44) has studied up to SSLC and owns a coconut garden and mango orchard in Koomapatti village, Virudhunagar District. After finishing his studies he has been looking after his 7-acre coconut and mango garden. In addition to his own land, he collects coconuts from other farmer’s field on contract basis i.e., he is entitled to harvest coconuts from other farmers on annual lease basis. All the coconuts collected were given to local merchant who in turn will sell it to other states. Jeyaseelan like others involved in coconut farming, employed daily wage labourers to husk the coconuts.
Jeyaseelan as Captain of District Level Kabadi Team Mr. Jeyaseelan in his leisure time plays “Kabadi” and he earned good name in his village in this game. During festival times he will be representing Kabadi team to nearby villages and help his team to win many matches. Later he has been selected for the District level Kabadi team for the Virudhunagar District. By seeing his talent he has been chosen as captain for the district level team.
His Job Mr. Jeyaseelan wanted to dehusk coconuts by himself and promote direct selling to other states. He started dehusking coconut through manual methods by hiring labourers. He performs dehusking and packs the coconuts in gunny bags. He sends lorry load of husked coconuts through agents at Madurai and from there to Maharashtra, Gujarat and Andhra Pradesh.
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. Forty four year old Mr. R. Jeyaseelan, from Ramasamiapuram (Taluka: Srivilliputhur, District: Virudhanagar), felt that too. Problems usually faced by coconut dehuskers are:
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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.
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. This search for a solution became a passion for him. He would spend all his leisure time thinking about probable designs and mechanisms. He used to go to the weekly market at Tilagarthidal, 80 kms away from his village to sell his coconuts. He began to make frequent trips as he started spending more time there to pursue his ideas. His expenses mounted and he ended up spending more than Rs. 1,00,000. Jeyaseelan with the tenacity that he often showed while playing Kabadi continued to focus on his ideas of devising a coconut-husking machine. Over the last 9 years, between 1991 – 2000, he had good experience in all aspects of dehusking coconut,
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engaging laborers in such a way so as to get maximum efficiency and output from this venture. He devoted eight months to the problem of developing a mechanical husker.
1.2 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. However, the entire process was time consuming and Jeyaseelan switched to a two-blade model. Efficiency increased and he decided to standardize this model. He fitted a 1.5 hp motor that was coupled through a belt to a long, cylindrical metal rod. Two sharp blades were fixed at the tip of the rod. The blades were three quarter of an inch long and placed one inch apart. The rotating motion of the blades would husk the coconuts easily. A switch was used to operate the machine. Initially, the switch could be turned only by hand. He worked on it further and feet could then operate it.
Pic – 2: Innovator at Work 11
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1.3 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, a local NGO. He won the Tamil Nadu state prize of Rs. 25,000. His machine was featured in the local media. The award and the recognition made him a popular and respected figure in his village and surroundings areas.
1.4 The Product A low price, low operational and low maintenance cost offering for coconut traders, coconut shop owners and industries using coconut as their raw material to obtain the finished coconut based products i.e. to all those who dehusk the coconuts in a large amount mostly in the Southern region and other parts of India. This product will be a great help to dehuskers who have been seeking better options then the conventional manual ways for dehusking coconuts.
USP of the product Low price, low operational and low maintenance cost offering to dehuskers that
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will increase efficiency and productivity. Risk factor and health problems as injuries in hands and other parts of the body are minimized. This product is easy to use and effort required as compared to the conventional manual way of dehusking is very less.
1.5 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. They transport huge quantities of coconut to the northern and various part of India. The next important sector is the coconut shops (ex. 30,000 shops in Tamil Nadu itself). Finally, industries, which use coconut as their raw materials to produce coconut, based products like hair oil, coconut biscuits, cooking oil, and Coir pith etc.
1.6 Price He fixed the selling price of the husker at Rs. 13,500. Since he was a member of the coconut merchants association, he could convince many others to buy the machine. He sold 30 pieces. Nobody tried to copy his design as he got his innovation patented with the help of SEVA.
1.7 Entry Barrier The conventional way of manually dehusking the nuts dominates the market in the concerned regions. Coconut dehusking is mostly a family business and so old traders may be reluctant to accept this product and hence may not invest. Labourers are more comfortable with the existing method of dehusking and may take some time to get familiarized with this innovation.
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2. BUSINESS DESCRIPTION 2.1 About the Business Coconut Dehusking is an important aspect in a coconut industry. Dehusked nuts are sent to various large scale and small-scale industries using coconuts as their raw materials for the final products. 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. Thus, dehusking mainly faces labour problems. Mr. Jeyaseelan has developed a simple labour saving mechanical device called '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. This machine helps to eliminate the labour problem, reduces the risk and also increases the productivity to a considerable extent.
2.2 Business Idea India is having a huge coconut industry, and so the prospects of this product seem to be huge. The business lies in manufacturing of the “Coconut Dehusker”, finding target markets and prospective customers and selling the product.
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2.3 Product Description The dehusker is of extremely robust construction with a bare minimum of moving parts. Its speed of operation and simplicity is impressive as it takes only about six seconds to dehusk a nut with 100% husk removal. The machine has been modified with provision to dehusk all size nuts.
2.4 Features and Benefits
Fast and efficient - Dehusks a Nut in approx 15-20 seconds, 250 per hour. At 8 hr per day operation, production of over 2,500 nuts per day per unit is feasible. Duration of operation - 24-hr/day Operation providing full production with minimal downtime. Portable - Great for use in factory or field. Safe and reliable. Robust Construction - All parts are built to the highest quality standards with long life foremost on our mind. Hi-tensile Steel Blades Features a two-blade separator made of high tensile steel, which is practically impossible to break.
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Low Maintenance - The only required maintenance takes about 10 minutes: daily check of all nuts and bolts, and oiling twice a day. Blade sharpening is not necessary - they should last for years. Easy and efficient - Easy to Operate Once installed, personnel can be trained to operate the unit within half an hour. Frees Staff for Other Duties Valuable employees can be assigned to other tasks, making the organization’s operations more efficient. Reduces Bodily Harm - Compared to the old manual methods, the unit eliminates repetitive strain, gnarled hands, not to mention cuts from machetes and spikes. Reduces Down Time - All of the above adds up to greatly reduced downtime. Powered by Electricity - The De-husker is powered by a mounted electric motor.
9 SCOUTING DOCUMENT (SD) 1. Category: Agricultural and Coconut business. 2. Name of the Innovator: Mr.R. Jeyaseelan
3. Title of the Innovation: Coconut Dehusking Machine 4. Occupation of the Innovator: Owner of a coconut garden and mango orchard, coconut merchant.
5. Background of the Innovator: Mr.R. Jeyaseelan (44) has studied upto SSLC and owns a coconut garden and mango orchard in Koomapatti village, Virudhunagar District. After finishing his studies he has been looking after his 7-acre coconut and mango garden. In addition to his own land he collects coconuts from other farmers field on contract basis i.e., he is entitled to harvest coconuts from other farmers on annual lease basis. All the coconuts collected were given to local
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merchant who in turn will sell it to other states. Mr. Jeyaseelan in his leisure time plays “Kabadi” and he earned good name in his village in this game. Educational qualification: High School dropout. Total Income: Rs. 15,000 per month. 6. 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.
Mr. 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. He has developed a simple labour saving mechanical device called 'Coconut Dehusker'. A 1.5 HP Electric motor is coupled through a belt to a long cylindrical metal rod. The tip of the rod is fixed with two sharp blades at one side. The blades are at 3/4' length.
Features of the Entry: 1.
2.
Novelty of the innovation, It is a specialized machine that is used by the feature or subsystem. coconut merchants and also in coconut industries for continuous dehusking of the nuts in large quantities. With this machine, the coconut is being dehusked in a uniform manner and is neatly and conveniently collected and recovered. 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. Another feature of this machine is that it is easy in operation and maintenance. Through the rotation of the input shaft, the entire coconut is dehusked. Comparison to current conventional alternative by a) Functioning
Easier in operation, easier in maintenance, more productivity, energy efficient, labour efficient.
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b) Cost
Cost of the machine is high but output in terms of cost per kg reduces considerably.
c) Removal of drudgery
Removes drudgery of cutting coconuts efficiently at fast rate in coconut industries.
3
Limitations
Dehusking huge amount (more than 10,000) nuts a day in this machine (i.e. 6 such sets) is not advisable since it is not economical. So the innovator is into developing a new product described under Future Products.
4.
Specification Capacity Shaft rotating speed Motor Power Weight Outside dimensions
5.
6.
7.
8. 9.
250 nuts /Hr. 1420r/min 1.5 H.P. 135 kgs. 48*48*30 inches
Innovator has sold 30 machines. Since he is a member of the Coconut Merchants Association, he a) How many has been could convince many others to buy the machine. 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. Current and future This machine to be used in the coconut industries application areas. is related to continuous dehusking of large quantities of coconut in a continuous fashion. Commercialization
Significance to women, handicapped and other marginalized sector. IPR considerations References as provided by the innovator/NIF, Scout/ Nodal Officer/ Collaborator
This innovation can provide opportunity for the women employment as they can work in the coconut industries. Patent filed (with the help of SEVA) SEVA Mr. P.Vivekanadan 43-T.P.M. Nagar, Virattipathu, Madurai-625010, Tamil Nadu. Ph No. 04522380082. Email:
[email protected]
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Any other reputed person of the village/town/city. 10.
Details of the scout:
BUSINESS PLAN DISHA PROJECT Mr. Raghuram – Rajapalayam Ph: 09843062898 Res. 04563 226208 SEVA
Scout’s assessment of This proposal was initiated from SEVA only. innovator’s keenness in augmenting the innovation. Scout’s assessment of Quite convinced. He has already sold 30 machines. innovator’s competence in augmenting the innovation.
Pic –3: Opportunity for women 19
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4. EVALUATION DOCUMENT (EV) 4.1 The Product and Technology 4.1.1 General Description of the Innovation A mechanical device to dehusk coconuts is developed by Mr. Jeyaseelan. It is a simple labour saving mechanical device called “Coconut Dehusker”. He invented this machine when he came across some labour problems in dehusking coconuts and also to increase the productivity. The machine consists of a 1.5 HP Electric motor, which is coupled through a belt to a long cylindrical metal rod. The tip of the rod is fixed with two sharp blades at one side. The blades are at 3/4' length and at 1" interval. These blades and rotation help to dehusk the coconut easily to the desired level. In the innovators work spot there are six such sets. Each set is coupled to a 1.5HP electric motor. With the
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use of this device the husk could be separated into 4 pieces still leaving some coir fibers in the coconuts.
4.1.2 Salient Features of the machine Coconut is dehusked into four or eight uniform pieces with 100% yield. Low initial Cost (Rs. 13,500/-) 200 – 250 nuts can be dehusked per hour. In an average about 12,000 – 13,000 could be dehusked in a shift of 8 hours. Processing Cost is less. Less manpower to operate (6 labourers are needed per shift) Less risky. Machine is compact and made of iron. Saves time on extra efforts to be put in dehusking the nuts manually. Rotation of machine blades facilitates dehusking the nuts easily. (Dehusking one Nut – 20 Secs.) A novel machine in terms of its cost effectiveness, efficiency, safety considerations, new design of feeding, time saving and power transmission system.
4.1.3 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. This parameter not only saves manpower cost but also improves productivity. 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. Well-optimized power transmission, which ensures less consumption of electricity. The coconut dehusking capacity of this machine is 200-250 nuts per hour. If customer’s demand, provision for dehusking the coconuts could also be incorporated without many changes in the power transmission and feeding and dehusking system. The machine is fabricated in such a way that wastage of raw materials is minimized.
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4.1.4 Working Principle The coconut-dehusking machine, 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. This rotation of machine blades facilitates the dehusking process. 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.
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Pic – 4: Labour at Work
4.1.5 Construction This machine consists of the following main parts: a. Electrical motor. b. Shafts. c. Pulley, Flywheel & V belts. d. Bearings with box e. Centrally mounted rod, which acts as the cutter. f. Iron Plate support. g. Bolts and nuts. h. Foundation. i. Condenser j. Motor Starter k. Iron frame l. Handle pipe m. Steel cover.
A fitter, Welder, Electrician and a Painter are employed to assemble the machine parts to make the machine ready for sale.
Power Transmission The machine consists of Electric motor (1.5 HP) having a Pulley attached to the flywheel, which is attached to another shaft through the V- Belt drive. 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.
Feeding and Dehusking Mechanism 23
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The coconuts are fed into the machine manually by the labourer itself. The person stands in front of the machine’s double-edged blade and feed the coconut into the blade. The motor is started through the starter and the coconut is being dehusked by the rotation of the rotating shaft. Generally four passes are made to totally dehusk the coconut.
4.1.6 Technical Specification • • • • • • •
Electrical Motor Volts – 200/220 Single Phase – 50 Hz. KW/HP - 1.5 RPM – 1420 Ampere – 8.5 Power consumption- 12-units/ shift.
5. MARKET ANALYSIS SUMMARY 5.1 Marketing Strategy 5.1.1 Target Market Coconuts are mostly found in the coastal areas of India, mainly in states of Tamil Nadu & Kerala. The innovator targets “ J J Coconut Dehusker” in all parts of India, but initially to start with it is targeted in states of Tamil Nadu and Kerala. 1.
In Tamil Nadu itself there are around 3,000 coconut shops. These shops sell dried dehusked coconuts to end consumers.
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2.
To Coconut traders who sell dehusked coconuts in a large amount to large scale and small-scale industries across India. The innovator Mr. Jeyaseelan is himself into this business, where he collects coconuts from all parts of his and nearby villages, dries them under the sun, then dehusks them and finally sells them to many parts of India. He dehusks around 15,000 nuts on a daily basis. These types of traders constitute of most of the market for this product.
3.
Some Large-scale industries like those producing coconut hair oil, coconut biscuits and sweets, cooking oil etc. use huge quantities of coconuts for their raw material. These companies for dehusking coconuts in large numbers can use this product.
5.1.2 Mass diffusion in the coastal areas of India Coconut is usually grown in the coastal areas of India in the states of Tamil Nadu, Kerala and Karnataka. Some production is also there in the other states including Andhra Pradesh, Orissa, West Bengal, Goa and Maharashtra. The leader in the coconut industry is Kerela.
Since Kerala is the major producer of coconuts, the whole coconut industry is based mainly in Kerala like the oil producing industries, coir, mattresses, copra bazaars etc. next comes Tamil Nadu having 25%. The comparative figures are shown below.
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Fig - 1: Statewise Production of Coconuts So the main market for this dehusker is these two states. The dehusker also finds a potential market in Karnataka and Andhra Pradesh having 14% and 9% share in production.
Production of coconuts in Kerala. Sl No.
Place
Production in Tonne
1 2 3 4 5 6 7 8
Ernakulam Thiruvananthapuram Pallakad Alappuzha Kozhikode Malappuram Kannur Kasaragod
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
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Table –2: Production of coconuts in Tamil Nadu Since majority of the market is in Kerala and Tamil Nadu, these two areas are the target market for the “Coconut Dehusker”
5.1.3 Other Parts of the world 27
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Area and production of coconut in different coconut growing countries of the world.
Country
Area (in 000' ha)
Percentage share
Production Percentage million share nuts
F.S. Micronesia
17
0.15
40.00
0.07
Fiji
65
0.56
196.40
0.37
India
1796
15.51
13968.00
26.06
Indonesia
3745
32.35
13595.00
25.36
Malaysia
280
2.42
722.00
1.35
Papua
14
0.12
70.00
0.13
Papau New Guinea
260
2.25
Philippines
3093
Solomon Islands
960.00
1.79
26.71
11935.00
22.27
59
0.51
287.00
0.54
Sri Lanka
416
3.62
2546.00
4.75
Thailand
377
3.26
1130.00
2.11
Vanatu
96
0.83
346.00
0.65
Vietnam
190
1.64
1065.00
1.99
West Samoa
75
0.65
160.00
0.30
Others
1092
9.43
6576.55
12.27
Total
11578
100.00
53597.55
100.00
Table - 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, Philippines, Sri Lanka and Thailand. Some dehusking machines, much different from the one under study exists there, but is not used to the optimum. Hence, if marketed properly, this product can gain considerable ground in the foreign market.
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5.2 Product Positioning Positioning is an important method that focuses on positioning the product in customers mind. After specifying our target as the coconut industries and traders mainly in South India, we will first try to understand their psychology. A stringent analysis will be done to understand the way the product could be made attractive to them. Thereafter efforts will be made to inform the customers about the dehusking machine by different advertisement and promotional strategies. By highlighting its USP and showing live demonstrations the customers will be made to realize the products benefits. Post selling is an important phase that stresses on the customer retention process. This will be done by considering upon the complains and difficulties faced by consumers, and solving them through R & D.
5.3 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. One to one meeting 2. email and snail mail 3. 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. Subsequent technology related queries were answered with the help of the innovator.
5.3.1 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. Their inputs, 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
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o Ease of use o Effort required o Health Problems
5.3.2 Feedback of organizations contacted personally Most of the organizations gave a positive response. Their Name, Address and Contact are listed in Annexure II & III. 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. The companies from Kerala eg. Panniankara Oil Mills, told that labour is very costly in Kerala and this machine will be a boon for traders like them, 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. Will the proximity of m/c making any difference? The companies by talking to our team and having the Innovation Catalogue became got convinced, but they wanted to have a view of the working of the machine. So during sales, the working of the machine has to be demonstrated to the customers for their better understanding and judging.
5.4 Pricing The innovator prices the product at Rs. 13,500, but it is recommended based on the market study that an upward price revision could be considered. The pricing is done taking into consideration the cost of raw materials, factory overheads and the profit. The break-up is given later in this report.
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5.5 Promotion Strategy Promotion The target markets and the prospective customers will be reached through promotional strategies and advertising. Since most of the customers are farmers and from the rural segment of India, the advertising has to be done in local dailies, village fairs, and awareness programs. For the industries using coconuts as their raw material, promotion has to be done through personal selling, advertising in magazines. Concentrating on Tamil Nadu & Kerala. 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, Hindi and newspapers in local languages. Personal Visit and demonstration Local channel advertisements Industrial tidings.
5.6 Distribution Strategy After the customers have paid their advance or are ready to buy, the dehusker is sent to the customers by the following means: Distribution centers -
-
For remote villages, one shop is made available for each village for storing one machine and keeping 2 to 3 extra depending on the demand. For a cluster of villages, one common shop is to be established to the nearby market well connected to the villages.
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Distribution to customers -
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, the machine is assembled in the center itself, then transported to the customer. If customer is situated far away from the distribution center, then the partial assembling is done in the center and rest is left for the customers place. This is for the ease and economical transportation of the product.
In both the cases, a trained mechanic is sent for the proper assembling, functioning and training the people who are involved in using it.
5.7 Sales Strategy De-husking Machines are priced to be cost effective in the short as well as the long-term. 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, they are allowed to pay in installments. Proper distribution channels will be set up and sales force will be given the required training. After sales service will also be provided. Targeting villages for the coconut traders and shops. 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. Fluent in local language. 2. Convincing skills. Training required: About - Machine - Marketing
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- Convincing skills - Good communications - Fluency in Local languages Things required to be carried by the sales personnel: -
Video clips One machine for demonstration (in fairs and in distribution centers) Pamphlet Price catalogue with installment schemes.
Installment schemes:
Considering no advance payments, since farmers are not likely to pay any amount before the real use of the machine starts. # Scenario 1 Full payment after receiving the machine i.e. Rs. 14,000/So no installments # Scenario 2 Half Payment i.e. Rs. 7,000/Rest half in a period of 6 months. i.e. per month Rs. 1,230 (1,170 + 60 = 1,230 /-)
After Sales service: Maintenance of this product is very low except for daily check of nuts and bolts, and oiling twice a day. Blade sharpening is not necessary - they should last for years. Still trained personnel will be sent for any technical problem for a period of six months after installation.
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Sales Forecast
Year One Quarter Sales (No. Of Machines) Price
Year Two
1
2
3
4
5
6
7
8
8
8
8
8
10
10
10
10
14,560
16,016
16,016
16,016
16,744
16,744
16,744
16,744
Table - 4: Sales Forecast for Two Years The prior analysis has been made based on the current market survey.
5.8 Location Plan Location plan refers to the site that perfectly suits the business in terms of establishment and growth. The following are the suitable requirements, which should be kept in mind while selecting a location for starting this kind of coconut dehusking business: • • • • • •
A coastal area. Low cost of land. More coconut concentration. Availability of cheap labour. Adequate knowledge about the market. Availability of raw materials at nearby places to minimize the transportation cost.
The location of the innovator’s village was fulfilling all the above-mentioned requirements to start the business. Therefore he has chosen his village site itself to manufacture the machine. Besides all this, his established goodwill and relevant experience regarding coconut trading helped him to step into this venture.
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5.9 Competitive Analysis In the present scenario, since there are no other manufacturers of a mechanical coconut dehusker in the region, there is no direct competition from other manufacturers. Although several machines have been patented over the last 70 years or so, 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. However, there is an indirect competition from the cheap labour available across the country.
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6 FINANCIAL PLAN AND ANALYSIS SL. No.
1 2 3
4 5 6 7 8 9 10 11 12 13 14
Particulars
Motor Iron frame Pulley Wheel Radius a) Flywheel 5.6” b) Small 1.32” Bearing & Box Shaft Inside Pipe Handle pipe Handle Nuts & Bolts Blade Steel cover Condenser Starter (3 Pt. Or 2Pt. Starter) Fabrication work with workers salary (Each Machine) Current Office work, Ordering, Erection, Promoting etc.
Unit Rate (Rs.)
Qty.
3,000 1,800
1 1
3,000 1,800
200 100 213 150 100 50 6.25 125 1,350 250 1,350 -
1 1 1 1 1 1 40 2 1 1 1 -
200 100 213 150 100 50 250 250 1,350 250 1,350 650
-
-
900
TOTAL RM Cost
Cost (Rs.)
10,613
6.1 Bill Of Material
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6.2 Total Overheads of the Workshop Overhead Wages Rent for the workshop Electricity Telephone Salaries of sales force Miscellaneous expenses Total Overheads
Amount 5,000 1,250 1,450 600 1,600 400
Remarks Does not include Mr. Jeyseelan’s remuneration One month Monthly bill validated Monthly bill validated One Month Monthly bill validated
Rs. 10,300
6.3 Costing of a “Coconut Dehusker” Head
Raw Material Cost Factory overheads
Total Cost Margin Ex – Factory Price
Cost 10,613 1,287
11,900
Reference Detailed Bill of Material (BOM) as above. Workshop overheads as above – Apportioned on 8 machines (monthly capacity) -
2,100
-
14,000
Price as suggested by innovator is Rs. 13500 but it is recommended based on the market study that an upward price revision could be considered.
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6.4 Estimate of Working Capital requirements # Scenario One: Advance orders are available (For calculation the price is taken as Rs. 14000 per unit)
Head Advance Total Cost
Working Capital Gap
Price/Cost in Rs. 56,000 2,54,712 1,98,712
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). 7,000 2,54,712 2,47,712
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.) 0 2,54,712 2,54,712
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Remarks For one machine @ 50% advance For 1st Quarter (for 24 machines)
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6.5 Financial Projections
Based on a conservative estimate, 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. - The price of the machine is initially set as Rs. 14,000 per unit (original pricing indicated by the innovator was Rs. 13,500). In addition, a tax of intra-state sales tax @4% is considered, which will be passed on to the buyer. However, as suggested by the market study that there is scope of upward price revision. Therefore it is recommended that after the first quarter, price would be revised by 10% plus tax and after one year another 5% plus tax.
- The cost of production is assumed to be growing with a rate of 5% pa.
Quarter Cost of Production Price
Year One 1 2 3 11,900 11,900 11,900 14,560
16,016
16,016
4 11,900
Year Two 5 6 7 12,495 12,495 12,495
8 12,495
16,016
16,744
16,744
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16,744
16,744
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Table – 5: Cost of Production
Projections: For Second Year (Four Quarters)
Year Two Quarter Sales (No. Of Machines)
1 10
10
10
10
Revenue
1,67,440
1,67,440
1,67,440
1,67,440
Cost of production
1,24,950
1,24,950
1,24,950
1,24,950
42,490
42,490
42,490
42,490
6,698
6,698
6,698
6,698
10,738 25,054
10,738 25,054
10,738 25,054
10,738 25,054
Total profit NO Excise & Sales Tax @ 4% Tax 30% Net Profit
2
3
4
Note: The income is assumed to be subjected with an average rate of 30%, which is a bit higher. Making provision with higher rates would provide a cushion against the unforeseen sales and cost variations.
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6.6 Cost Benefit Analysis
Particulars
Manual
Coconut Dehusker
Objective: To dehusk Quantity (Nos.)
1,000 Nuts
1,000 Nuts
Dehusking Speed (Rate in Quantity per Hour)
150 Nuts ph. (an average estimate since rate goes down with time due to fatigue and injuries)
200 Nuts ph. (Given by Mr. Jayaseelan, also live demo seen when the team visited site)
Time Reqd. to dehusk 1000 Nuts.
6.6 Man-Hrs
5 Hrs.
Labour Charge per man-Hrs
Rs. 10
Rs. 6.25
Rs. 66
Rs. 31.25
Power consumption for dehusking 1000 nuts
Nil
1.66 unit
B) Power Charges for 1 Hr.
Nil
Rs. 5 (12 units @ Rs. 3)
Rs. 500
Rs. 14,000
A) Total labour cost for dehusking 1000 nuts
Initial Fixed Investment
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Financial Cost per hour (with Interest of 12% p.a)
Rs. 0.02
Rs. 0.72 per hour of processing (apportioned on 12*24*8)
Rs. 0.13
Rs. 3.6
D) Maintenance for 1,000 nuts
Nil
Rs. 6.25 (Rs. 2,880 p.a.)
E) Depreciation Cost (Operating life of 10 Years)
Nil
Rs. 3 (1,400 p.a.)
Total Operating Cost for 1000 Coconuts = A+B+C+D+E
Rs. 66.13
Rs. 49.10
C) Capital cost for dehusking 1000 nuts.
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 42
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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
Dr. Date
Particulars
Amount
To
Date
Particulars
Cr. Amount
By 3,62,520
Purchases Power Carriage Inwards Manufacturing Expenses Wages Insurance on Raw Materials To Gross Profit
5,000 2,48,545
Total
6,96,505
10,440 1,000 9,000 60,000
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Sales Closing Stock
5,12,512
-Raw Materials
90,630
-Work in Progress -Finished Goods
45,315 48,048
Total
6,96,505
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6.9 PROJECTED PROFIT & LOSS ACCOUNT Date
Particulars
Amount
Date
To
Particulars
By 4,800
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
1,000 1,500 1,76,105
Total
2,48,545
Gross Profit b/d
2,48,545
9,600 19,200 7,200 5,000 2,880 7,000 7,300 6,960
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Total
2,48,545
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6.10 PROJECTED BALANCE SHEET
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Liabilities
BUSINESS PLAN DISHA PROJECT
Amount
Capital Creditors
Assets
1,84,310 1,20,000
Overdraft Profit after Tax
1,50,000 1,23,275
Outstanding Expenses
5,000
Total
5,82,585
Fixed Assets Shade 70,000 Less Dep. 7,000 Loose Tools Welding Machine Current Assets Prepaid Expenses Cash Bank Debtors 1,92,192 Less prov: 9,600 Closing stock Raw Materials Work in Progress Finished Goods Total
6.11 RATIOS ANALYSIS Gross Profit Ratio Gross Profit Ratio = Gross Profit * 100 Sales
= 2,48,545 * 100
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Amount
63,000 15,000 11,000
2,000 25,000 1,00,000 1,82,592
90,630 45,315 48,048 5,82,585
COCONUT DEHUSKER
BUSINESS PLAN DISHA PROJECT 5,12,512
=
48.4 %
Net Profit ratio Net Profit Ratio
= Net Profit * 100 Sales = 1,76,105 * 100 5,12,512
=
34.36 %
Fixed Asset Turnover Ratio Fixed Asset Turnover Ratio
=
Sales Fixed Asset
= 5,12,512 89,000 = 5.75 times (approx)
Stock Turnover Ratio Stock Turnover Ratio = Cost of Sales Average stock = 2,63,967 1,83,993 = 1.5 times (approx)
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Current Ratio Current Ratio = Current Assets Current Liabilities = 4,93,585 1,25,000 = 4 (approx)
Quick Ratio Quick Ratio
= Current Assets – [Prepaid Expenses + Stock] Current Liabilities
=
3,07,592 1,25,000
= 2.5 (approx)
6.12 Return On Investment (ROI) Return on Investment
=
=
=
Net Profit before Interest, Tax and Dividend *100 Capital Employed 1,76,105*100 5,82,585 30 %
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6.13 Internal Rate of Return (IRR) Internal Rate of Return
= Capital - Net Profit Net Profit
= 1,84,310- 1,76,105* 100 1,76,105 = 4.6 % (approx)
6.14 Net Present Value(NPV) Year-end cash inflows are – Rs. 2,50,000 ; Rs. 2,00,000 ; Rs. 1,50,000 ; Rs. 1,00,000 ; Rs. 50,000 in years 1 through 5. The opportunity cost of the capital may be assumed to be 10 percent.
NPV = 2,50,000 (1 + .10)
+ 2,00,000 + 1,50,000 + 1,00,000 + 50,000 - 5,82,585 (1 + .10)2 (1 + .10)3 (1 + .10)4 (1 + .10)5
= 22,500
6.15 Break-Even Point (B.E.P) Break-Even Point =
=
=
Fixed Costs Sales Price – Unit Variable Cost 89,000 14,560-9,093 16 units (approx)
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In ‘000 Rs. R e v e n u e & C o s t s
Sales Line
60
Total Cost Line
48
36
BEP
244608 24
Fixed Cost
12
8
16
24
32
Number of Units
Fig – 3: Break Even Analysis
6.16 Gannt Chart – Implementation schedule 2004
2005
50
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Oct Nov Dec Jan Feb Mar April May June July Aug From Project Asgn. till the Final Review Analysis Project Assigned Product Study (FAB)
14 14
14
14
Planning 14 Market survey (Mass diffusion, potential customer, licensee, target market) Select Location
6
6
15
Setting up of Manufacturing Unit Recruiting sales force and trained labour Begin Mfrng. (1st Qtr) Batch – 1 Review Analysis-I
15
15
15
5 Batch – 2 5 Review Analysis-II Batch – 3 Review Analysis-III
5 10
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10 10 15
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6.17 Successful declaration of the Project -
Sales of 96 machines per year would be considered as excellent success. If technology is licensed during the currency of the project agreement, it shall also be treated as success. However, there could be several ways, in which technology could be licensed e.g. Exclusive vs. Non-exclusive, Regional licensing etc.
6.18 Rights on Know-How and related Matter The rights on the technology as claimed in the patent application would be with the innovator, Mr. Jeyaseelan. Only in case of technology licensing, it may change as per the agreement signed by Mr. Jeyaseelan and the licensee.
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7. MANUFACTURING SECTION
7.1 Advantages of the Location • • • • •
The innovator’s village is near to the coastal area, hence having more coconut concentration. The land purchased for his manufacturing unit was lesser as compared to that of urban areas. As it is a rural area, cheap labour is available to him. Since he was already engaged in the same occupation of coconut trading, he has acquired sufficient knowledge about the market and also created goodwill for himself. The raw material required for manufacturing the machine was available at nearby places, it in turn reduces the transportation cost.
7.2 Production Needs Components required for production 1. Raw Materials 1. Electrical motor. 2. Shafts. 3. Pulley and flywheel. 4. V belt. 5. Bearings with box 6. Centrally mounted rod, which acts as the cutter. 7. Iron Plate support. 8. Bolts and nuts. 9. Foundation. 10. Condenser 11. Motor Starter 12. Iron frame 13. Handle pipe 14. Steel cover.
2. Components for production 1. Welding machine 2. Paints
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3. Cutting tools 4. Electrical wires 5. Electrical testing equipment
3. General Requirements: a. b. c. d. e. f.
Electricity. Space for shade. Warehouse. Semi skilled labour. Experienced personnel in welding, fitting and painting. People having general idea about lathe machines, which is required for some fabrication. g. Also, good amount of inventory must be available to meet sudden demand.
7.3 Quality Control ISI certificate for the product has to be obtained from BIS (Bureau of Indian Standards). For this, we should modify and develop the product to raise it to the level of BIS standards. To get the certification from BIS the product should meet certain requirements recommended by BIS. So this should be the first priority before launching the product commercially. The requirements include: Rust Prevention: The iron parts should be well painted so as to prevent it from getting rusted. Full Protection: The machine should be placed in such a way that the electric motor and the power transmission system get protected from water, sunlight and rain. Proper Structure: It should maintain its structure according to the specifications Proper Standard Its other components should also maintain a minimum level of standard.
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We would also work towards getting an ISO certificate for the organization. For this, the working environment and the labour treatment should meet the requirements.
7.4 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. The innovator has good terms and contacts with the suppliers because of his prior occupation in the same field, which makes him known about the nature of market suppliers.
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8 CRITICAL RISKS SECTION 8.1 Internal strengths -
-
It’s a new and unique invention in its own field. It has very low operating cost. It requires minimal of maintenance. Doesn’t require any sort of repairing for a long period. Saves effort & time. High productivity. Less labour consuming.
8.2 Weaknesses -
More investment is required as compared to manual operation. The machine is quite bulky & requires lot of space for installation & operation.
.
8.3 Opportunities - With the bulk production at the later stage the cost of production will go down. - The machine may acquire a better & sophisticated design & look. - When the production will be very high, then this machine can be made into a composite one by using six sets together which has added advantages over this machine.
8.4 External threats - Some other new innovations having better productivity & cost efficiency may enter the market. - The power supply becomes more costly. - Lack of appropriate advertising to reach the target market may lead to early death of the product. - Proper education about the product & spread of word of mouth is very important for the formation of good perception of the product. - Others may also start manufacturing similar machine with little variations. - The market may get saturated after a long period of time.
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8.5 Risk Analysis Variables
Range (Min)
Range (Max)
Most likely value
Quantity (per year) Price (in Rs.) VC (in Rs. Per unit) FC (in Rs.) Depreciation (in Rs.) Tax (in percent) Cost of capital (%) Project life (period in years) Preliminary + pre operating expenses Initial investment (in Rs.)
10 70 50 13,500 14,500 14,000 9,450 66,150 47,250 75,000 1,00,000 89,000 0.20 1.40 0.80 0 0 0 5,50,000 6,00,000 5,82,585 3 3 3 1,50,000 2,00,000 1,84,310
Table – 6: Risk Analysis 8.6 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. 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. Poor demand is an unlikely scenario as the production capacity for the first two and half years as planned is very minimal. Any future plan for expansion will be based on the interest generated and future orders that will be received. Demand will be properly studied and evaluated in every six months. In the eventuality that demand doesn’t grow and it is not profitable even to carry on the business with the existing capacity, the unit shall be closed down and all assets that can be sold will be disposed of accordingly. Since this is a completely new venture with a completely new product such risk will have to be taken up. Competitors At present there are no competitors that offer the same benefits as the product offer, therefore in this regard the product is safe from any potential competitors offering the same benefits like a manual system for dehusking coconuts. It is unlikely
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that in the near future there will be players in the market offering manual coconut dehusking machines. This argument is supported by detailed prior art that has shown there are no other manual systems existing anywhere else. The only risk is new players copying the design and giving the same offering in the market. However this issue can be dealt with by filing design patents for the various variants. 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. One possible reason being that the cost involved with purchasing the machine from the innovator is too high. Cost of the raw materials The total cost of the raw materials for construction of the coconut dehusking machine comes to around Rs. 11500. The Selling price is projected at around Rs. 13500, which is a margin of around Rs. 2000. Raw materials are easily available both in the rural areas and smaller towns and even in bigger towns. Expertise of the innovator: The innovator has perfected the innovation in a trial and error method. Over the last 9 years between 1991 – 2000 he had good experience in all aspects of dehusking coconut, engaging laborers in such a way so as to get maximum efficiency and output from this venture. Though simple in design, fabricating the machine still involves a lot of skill. Therefore sacrificing the time coupled with a big margin to make errors would also act as a deterrent to the most skillful labourer. . Help from purchaser: Even if a person decides to imitate the product, he would still require some reference. This would probably be a product purchased and installed by a trader, nearest to him. Study of the machine by the prospective fabricator is bound to elicit interest from the purchaser. Practically no customer would be willing to let another party blatantly copy and fabricate the machine for which he has paid a price.
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9. 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. The response has been quite encouraging. The detail is as follows: a. Panniankara Oil Mills Mr. T.B. Krishnadas 9/622 B, Cherooty Road Calicut-673001 Kerala, India Ph: +91-495-2366681, 2365244 Email:
[email protected],
[email protected],
[email protected] Website: http://www.lakshmioil.com
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6 FUTURE PRODUCTS The coconut dehusker, which has been discussed here; is having numerous advantages on its own, but when a huge quantity of nuts needs to be dehusked, using a single machine will not be very economical. This idea drove Jeyaseelan to think of something innovative to improve the machine. He had been using six dehusker units. In each unit, the motor was attached to the dehusking rod by a belt, which passed through a pulley. Since the motor was frequently switched on and off, the belts had to be changed frequently which was not very economical. The switch and the coil in the motor were also subject to a lot of wear and tear. All these problems led to high recurring expenses. He discussed these problems in the innovators association meeting (Regd. Organization with 60 members promoted by SEVA). Manoharan, another innovator suggested that 8 units could be clubbed into a composite unit, which could be operated through a single motor of 1.5 hp or 2 hp capacities by using a shaft, two flywheels and a gear mechanism.
Pic – 5: Future Product Two innovators Manoharan and Balan worked with Jeyaseelan on improving the dehusker. Attaching 2 hp motor and 2 flywheels he designed a composite unit. A central shaft rotated the peeling blade. The speed of the shaft was stabilized through the two flywheels. A gear and clutch mechanism was incorporated. The improved dehusker could dehusk 1,000 nuts per hour. This model did not involve a separate switchboard and a belt. Unfortunately the Tamil Nadu government has not yet officially recognized the innovation.
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Jeyaseelan is now in a process of standardizing the improved design of the dehusker. He wants to patent this model, which incorporates 8 units. He plans to sell this machine having eight units at about Rs. 50,000 to Rs. 60,000. 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.
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Annexure I INNOVATION CATALOGUE
Innovator: Product Development:
Mr. R. Jayasheelan Mr. R. Jayasheelan Innovator & Proprietor
Incubation Assistance
National Innovation Foundation (A body supported by Dept. of Science & Technology, Govt. of India & IIM, Ahmedabad) Bungalow No. 1, Satellite Complex, Jodhpur Tekra, Premchand Nagar Road, Ahmedabad – 380015, Website: www.nifindia.org
Product Features: This Innovation is a simple labour saving mechanical device called 'J J Coconut Dehusker'. This machine helps to eliminate the labour problem, reduces the risk undertaken while dehusking large quantities of coconuts and also increases the productivity to a considerable extent.
Unique Features:
Product Enquiries:
Coconut is dehusked into four or eight uniform pieces with 100% yield. Low initial Cost (Rs. 13500/-) 200 – 250 nuts can be dehusked per hour. In an average about 12000 – 13000 could be dehusked in a shift of 8 hours. Weight – 135 Kgs. Processing Cost is less. Less manpower to operate (6 labourers are needed per shift) Less risky, (Eliminates injuries in their hands and other parts of the body) Machine is compact and made of iron. Saves time on extra efforts to be put in dehusking the nuts manually. Rotation of machine blades facilitates dehusking the nuts easily. (Dehusking one Nut – 20 Secs.) A novel machine in terms of its cost effectiveness, efficiency, safety considerations, new design of feeding, time saving and power transmission system. Samrat Ghosh Mob: 09886229781
email:
[email protected]
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Avijit Sarkar Mob: 09886169135 email:
[email protected] (Student: IFIM Business School, Bangalore)
Comparison between Manual and Machine Dehusking Particulars
Manual
Coconut Dehusker
Quantity per hour
150 – 200
250
Time Taken per coconut
19 - 24 secs.
15 – 18 secs.
Risk Factor
Very High
Nil
Electricity charges
Nil
12 units @ Rs.3 = 36 /unit
Health Problems
Injuries in hands and other parts of the body
Nil
No of labours involved
40 for 15000 nuts
6 for 15000 nuts
Labour Charges
60 / day
60 / day
Total labour cost
40 x 60 = 2400
60 x 6 = 360
Ease of use
Difficult
Easy
Effort required
Very high
Very less
Wastage in coir
Few
Nil
Other Features: Robust and reliable Warranty of 3 yrs Maintenance cost – greasing of the moving parts, changing of the condenser when problem arises (Cost Rs. 250), Replacing switch and coil after regular intervals, Changing of belts depending on the use.
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Cost: Price Rs. 13500/(One time or else part payment through installment schemes)
For further information, Contact: DISHA – Shaping Innovations National Innovation Foundation Manish Saxena National Coordinator, Business Development Email:
[email protected] Ph. 98253- 16994 Manish Vaidya National Coordinator, Value Addition and Research Development Email:
[email protected] Ph: 98253-16992
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Annexure II List of organizations contacted through Email S.No
NAME
EMAIL
ADDRESS
1.
Abri Formulation Pvt. Ltd
[email protected] [email protected]
Contact Person : Ms. Monica Malhotra G-115, Ist Floor, Kalkaji New Delhi - 110 019, (India) Tel : +(91)-(11)-51604333 Fax : +(91)-(11)-51604334
2.
Amirtha Impex
[email protected],
[email protected]
Mr. Natarajan D 55/44, Palani Andavar Koil Street, Vadapalani Chennai - 600 026, Tamil Nadu, India Tel : +(91)-(44)24800588/31035577/9444123036
3.
BASTIAN SURESH COCHIN AYURVEDIC CENTER
[email protected] [email protected]
No.33, New Municipal Double Storey Market, Lodhi Colony , New Delhi-110003 Phone : +91-11-24619367, 24691123 Fax : +91-11-24691735, 24643031
4.
Gunbow Trading Company
[email protected]
Contact Person: Mr. Jai Krishnan Sambasivan P.O. Bag No.4803, Cullen Road Bazaar P.O. Alappuzha (Alleppey) - 688 012, Kerala, INDIA
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BUSINESS PLAN DISHA PROJECT Tel: +(91)-(477)2244133/2244979 Tel. Fax: +(91)-(477)-2244550
5.
sunjaya coconut shell powder
[email protected]
Mr. Theo Sukianto (Director) Jalan Raya Semarang-Demak KM 16 Semarang - , Central Java, (Indonesia) Phone: + 62 - 24 - 6511864 Fax: + 62 - 24 - 6511865
6.
Ganges
[email protected]
42/9,East End Park Kolkata-700039, West Bengal, (India) Tel : +(91)-(33)-3095 9815 Fax : +(91)-(33)-24553238
7.
Mr. P Prabhakara Nadar, Swamy Oil Induatries
[email protected]
Pullikede Kollam – 691001 Tel : 0474 – 742176/741776
8.
Frigmaires International
[email protected]
P.O. Box 16353, Janata Industrial Estate Lower Unit No. 8, Senapati Bapat Marg, Opposite Pheonix Mill Maharashtra-400 013, (India) Tel : +(91)-(22)24944108/24945624/24926159 Fax: +(91)-(22)24944108/22186046/22187750
9.
mansarovar farms
[email protected]
Mr. N. Ramesh 39, Alamelu Nagar, Kamarajar Road Coimbatore - 641 015, Tamil Nadu, (India) Tel : +(91)-(422)-2572591
10.
Neptune Equipment coconut fibres
[email protected] [email protected]
Contact Person : Mr. R. V. Panchal, Mr. Sandeep Dave Address : 297, Phase-II, Dediasan,
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BUSINESS PLAN DISHA PROJECT Mehsana - 384 002, Gujarat INDIA Phone no : +(91)-(2762)-259331 Mobile no :(+91) - 98245 00979 Fax : +(91)-(2762)-252070
11.
Gem Forgings Private Limited
[email protected],
[email protected]
Mr. Shashank Garg Address :10/C, Middleton Row, 3rd Floor, Calcutta,West Bengal - 700071, India Tel No. :+(91)-(33)-22177328, 22177329, 22177330 TeleFax. :+(91)-(33)-22177333, 22469130
12.
HLL
[email protected] yashmi
Mumbai office Ph : 022-22870622, 22827411
13.
Dabur
[email protected]
Bangalore Ph : 080-25592544, 25592570, 25091103, 25091104
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Annexure III List of organizations/customers contacted over phone/direct Sl. No
NAME
PHONE NO
1.
Mr. Raghuram
04563 – 226208 09443162878
2.
Hemaraj Ookeda & Co.
64155
3. 4.
Mr. P Prabhakara Nadar, Swamy Oil Induatries K.K.Achrekar & Sons.
0474 – 742176 741776 61129/62424
5.
K. V. Moosakoya & Co,
366216/301834
6.
Parmanand Gulab Chand & Co
82847/61871
7.
Solar Products traders.
365562
8.
C.B. Brothers
366981/306662
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ADDRESS Rajapalayam, Near Madurai, Tamil Nadu - 626133 Gujarati street, Kozhikode-673001. Pullikede Kollam - 691001 P.B. NO. 156, Gujarati Street, Kozhikode- 673001 9/526, Copra Bazaar, Kozhikode-673001. 9/282, South Beach Road, 6 South Beach Road, Kozhikode673001 11/317-A- Court Road, , Kozhikode673032. 9/494, Koyassam Koya Road, Copra Bazaar, Kozhikode673001.
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Annexure IV Important contacts for the successful completion of the Business plan 1.
Innovator – Mr. R. Jeyasaleen S/O Ramiah Nadar, J.J. ILLAM,134. B. Kulalar Street, Ramasamiapuram, P.O. Koomapatti Taluka: Srivilliputhur Dist. – Virudhunagar – 626133 Tamil Nadu Ph: 04563 – 82239 Mob: 09443556966
2.
Collaborator – Mr. P. Vivekanandan SEVA 43 – T.P.M Nagar, Virattipathu, Madurai 625010 Tamil Nadu. Ph: 0452 – 2380082 Email:
[email protected]
3.
Swati Chadha – Fellow, Business Development NIF Email:
[email protected]
4.
Mr. Manish Saxena - National Coordinator, Business Development Email:
[email protected] Ph. 98253- 16994
5.
Manish Vaidya - National Coordinator, Value Addition and Research Development Email:
[email protected] Ph: 98253-16992
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6.
Ranjan – Fellow, Business development. NIF email:
[email protected]
7.
Mr. Raghuraman – Ist Customer Rajapalayam. Tamil Nadu - 626133 Ph: 04563-226208 Mob: 09443162878 7. Kerala Bureau of Industrial Promotion Nandavanam Palayam Thiruvananthapuram, Kerala
11.
12.
Tel – 0471 – 2324287 / 311882 Email –
[email protected] Coconut Development Board: Govt. of India - Ministry of Agriculture, Kera Bhavan, Kochi - 682 011 Kerala Ph: 0484-2376265, 2377266, 2377267 NIF - Registered Office National Innovation Foundation, India B4, Ravi Niketan, Nehru Park Vastrapur, Ahmedabad 380 015 Gujarat.
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Annexure V
Layout and Floor plan for the Manufacturing Area
WELDING MACHINE
8 Feet
E N T R A N C E
20 Feet
FITTING SHOP
PAINTING
T O O L S
FINISHED
RAW
GOODS
MATERIALS
14 Feet
20 Feet
42 Feet
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P O W E R
8 Feet
18 Feet 30 Feet
11 Feet
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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, for example, a university member discussing his/her invention with an interested company. 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.
Representative of Mr. R. Jeyaseelan (hereinafter "Innovator") and_____________________________ (hereafter the "undersigned") have disclosed and plan to continue to disclose to each other certain data, specifications, samples, materials, research and information, including new product development initiatives, business plans, and business objectives, (the "Information") regarding new product development work involving: _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ In the course of the parties' discussion, Innovator has and may disclose to the undersigned for evaluation purposes only, and the undersigned may disclose to Innovator for purpose of negotiating mutual development contracts, certain internally generated data, materials, documents, specifications, samples, and/or other information which is competitively sensitive, proprietary, and/or confidential to that party (the "Information"). In consideration of the disclosure of such information by each party to the other, 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, by the disclosing party
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respecting the Information and which is designated, 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, by the disclosing party as proprietary and confidential. The reviewing party shall not disclose it to any third party, directly or indirectly, without first obtaining the written consent of the disclosing party. In addition, each receiving party hereby agrees not to chemically analyze, 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, or otherwise reverse engineer any materials or samples provided by the other disclosing party pursuant to this Agreement.
Without limiting the foregoing in any way, unless otherwise signed, the parties hereby agree to hold in strict confidence the terms of any agreement, formal or otherwise, and any discussions respecting a future business relationship. Any public statements, press releases, or broadcasts prepared, made, approved, or consented to by either party hereto which discusses a possible relationship with the other party or any of the Information, shall mutually be agreed to by both parties prior to publication, release or broadcast. 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; Is or becomes known to the public generally through no fault or other action of the receiving party; Is obtained lawfully by the receiving party, other than Information subject to an obligation by the third party to keep such Information confidential; or Is developed by the employees, agents, or representatives of the receiving party independently and as a result of its own efforts, without the use of, or access to, the Information received from the disclosing party. In order to minimize the inadvertent disclosure of the Information, each receiving party agrees to the following: It will limit disclosure of the Information only to its employees, representatives, agents or consultants who require the information for the performance of their duties and in any event, disclosure to consultants shall only be made pursuant to a confidentiality obligation respecting such disclosures to said consultants; 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.
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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 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, without the necessity of proving actual damages. 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. Unless otherwise agreed in writing signed by both parties, 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 contains the entire understanding hereto relative to confidentiality of the 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, Or
b)
The first disclosure by Innovator of the same Information. This Agreement may not be amended or supplemented except in a written agreement signed by both parties. The terms and conditions contained in this Agreement shall be governed by and construed in accordance with the Innovator – Mr. R. Jeyaseelan.
Each receiving party recognizes and agrees that nothing in this agreement shall be construed as granting any rights to a receiving party, by license or otherwise, to any Information of the disclosing party, except as specified in this Agreement. In order to indicate acceptance of this above-mentioned terms and conditions, the parties have signed this letter I the space herein provided by an officer duly authorized. ACCEPTED AND AGREED TO: Company: _____________________________ Signature: ____________________________ Name: _________________________________ Title:________________________________ Date: ________________________
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INNOVATOR – Mr. R. 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. Along with a greater share of increased productivity, there is a chance for higher income being given to workers. Involvement of women is appreciable but whether opportunities for them will arise only when piece rate wages go down, is an issue that needs further exploration. A great amount of encouragement should be there from the government of our country to help these types of innovations. NIF, established by the Department of Science and Technology, Government of India aims to recognize, respect and reward grassroots technological innovators and outstanding knowledge 75
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experts. This, in turn, will help the production with ease, which finally leads to the growth in the GDP of our country.
BIBLIOGRAPHY Books: Philip Kotler, Marketing Management Khan, Managerial Accounting Jain & Narang, Financial Management S.N. Maheshwari, Management Accounting Websites: www.coconutdehusking.com www.businessplan.com www.google.co.in www.nifindia.org www.disha.scai.org.in www.lakshmioil.com
Magazines: Honeybee – Vol 15(2) June 2004
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