BUSINESS PLAN

ON

BRAHMAPUTRA FIBRES(PROJECT REPORT ON BANANA FIBRE

EXTRACTION UNIT)

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BODY OF THE PRESENTATION

• Quick facts about the Project

• Genesis

• Raw Materials

• Source of Finance

• Market Potential

• Some Purchase Point

• Process of Operation

• Cost Structure

• Break Even Point

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QUICK FACTS ABOUT THE PROJECT

1 Name of the unit: BRAHMAPUTRA FIBRES

2 Address:a)Factory:b)Office:

AMONI, NAGAON -DO-

3Constitution: PARTNERSHIP BUSINESS

4 Name and Address of Promoters: • Mr. Paviter Singh ( Jorhat, ASSAM)• Mr. Tushar Sarkar (Meerut, U.P)• Mr. Mritunjay Kumar (Nawada,

BIHAR)• Mr. Jeetender Mishra (Ranchi,

JHARKAND)

5 Proposed project: BANANA FIBRE EXTRACTION UNIT

6 Total project cost: `3,27,350

7 Total fixed cost: `2,86,400

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8 Total working cost: `40,950

9 Source of finance: PROMOTER: 15%LOAN: 85%

10 Name of Financial Institution: North Eastern Development Finance Corporation Limited (NEDFi)

11 Product: Banana Fibre: Dyed and undyed

12 Plant capacity per month: 1.2 TONNES

13 Raw materials required per month: 30 TONNES

14 Production per month: 1 TONNE

15 Profit per month: `20,244

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GENESIS

India is the largest producer of banana in the world contributing 26% of the total global production.

In India banana is grown in 6.8 lakh hectares.

Assam is the 6th largest producer in India.

Traditionally, banana is mainly used for fruits and leaves.

Other portions of the plant are dumped as waste causing environmental problems.

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Contd…..

• Every year 1000 million tonnes of banana pseudo stem are dumped as waste.

• These banana pseudo stems can be effectively utilized in extraction of fiber.

• This banana fiber has a great demand in industries as well as among the local SHGs who use it as raw material in preparation of handicraft items.

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RAW MATERIALS

The region around the proposed unit is traditionally a banana growing area and there is banana production all throughout the year.

The unit will enjoy the benefit of easy availability of raw materials throughout the year.

The cost of transportation will be minimum.

The pseudo stems can be procured @ `25 per quintal.

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LOCATION:

• The proposed unit will be located in Amoni, Nagaon which is 1Km away

from the NH-37.

PROMOTERS OF THE UNIT:

1. Paviter Singh Matharu

2. Tushar Sarkar

3. Mritunjay Kumar

4. Jeetender Mishra

MAN POWER REQUIREMENT:

1. Supervision of the unit: By the promoters

2. Unskilled labour : 5 no. @ `3000/month

3. Security Man: 1 No. @ `2000/month

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SOURCE OF FINANCE

Financial assistance from NEDFi under the scheme for Agri Graduates

IDEA: Initiative for Development of Entrepreneurs in Agriculture.

15% of the Project cost borne by Promoters.

85% of the project cost financed by NEDFi.

25% of the project cost as soft loan @ 1% rate of interest.

60% of the project cost @ 8.24% p. a.

Promoter’s contribution: (15% ) = `49,100

NEDFi’s Assistance:

Soft loan: `81,836

Normal loan: `1,96,410

Free insurance for the unit.

.

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MARKET POTENTIAL

• The region has got a great market potential which is still untapped. The fibre has got multifaceted uses.

Industrial uses SHG’s

1. Gunny Bags2. Door Mats3. Yarn4. Carpets5. Ropes6. Luggage Carriers7. Tissue Paper8. Filter Paper9. Handmade Paper10.Decorative Craft Paper11.Blending with Jute, Silk

1. Sarees2. Sweaters3. Decorative Items4. Handicraft Items

• The Promoters have tied up with various SHG’s who use banana fibers as a raw material to prepare value added products

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SOME PURCHASE POINTS OF BANANA FIBRES OUTSIDE THE STATE

Kumarappa National Handmade Paper Institute,Ramisinghpura, Sanganer,Jaipur- 303 902

Salim’s Paper Private Limited,Sitapura Industrial Area,Tank Road, Jaipur

Rudraksha textiles LimitedSankpura Industrial Area,Kolkata, West Bengal

Kalbana Textile Industries,Nashion ka rashta, Jaipur Rajasthan

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PROCESS OF OPERATION

• PROCUREMENT OF RAW MATERIALS:

The raw materials i.e. pseudo stems is collected from banana growers of the locality and carried to the unit. It has to be processed within 24 hrs.

• CUTTING OF THE PSEUDO STEM:

The pseudo stems are cut into pieces of 2-3 feet and the core is split open to get pieces of convenient thickness and width.

• CLEANING OF THE PSEUDO STEM PIECES:

The pieces are washed with water in a tank to remove the dirt etc.

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• FIBRE EXTRACTION FROM THE CUT PIECES:

The fibre extraction will be carried out with the machine called “Banana Fibre Extractor” designed and developed by KVK of CTRI, Rajahmundry, AP

The machine works with the principle of beating and scrapping at tandem.

The main component of the machine is roller drum with blunt blades rotated at 660 rpm on a shaft through a motor of 1 hp.

• IMMERSION OF FIBRE IN WATER

• HANGING OF FIBRE FOR DRYING

• COMBINING OF FIBRE WHEN HALF DRY

• DYING OF THE FIBRE:

Dyes like Rodamine( pink), Brilliant Green( green), Oper blue( blue) will be used. Dye is added to boiled water and the fibre is immersed in this solution and boiled for 20 minutes and salt is added for fixing of the colour.

½ spoon of dye is added to 2 lit of water which is sufficient for 500g fibre.

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COST STRUCUTRE

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Serial No.

A. Fixed capital Quantity Rate (`) Rupees (`)

1. Land: Owned

2. Building: 20× 20 ft @ `400/ sq ft 1,60,000

3. Machineries and Equipments:

1,13,400

• Banana Fibre Extractor (CTRI Model)

2 @ `35,000 each

70,000

• Knife , saw and other cutting equipments

6 @ `100 each 600

• Water tanki. 1500 liter capacity.ii. 500 liter capacity

11

@ `8500@ `3000

11,500

• Plastic trays 10 @ `50 each 500

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A. Fixed capital (contd..) Quantity Rate Rupees(`)

• Big size Comb 4 @ `25 each 100

• Buckets 5 @ `50 each 250

• Air tight Plastic Containers (capacity of 30kg each)

4 @ `300 each 1,200

• Gas Stove 2 @ `4,000 each

8,000

• Generator 1 @ `20,000 20,000

• Weighing Balance• Measuring Cylinder

11

@ `1,000@ `250

1,250

4. Electrification: 7,000

5. Water Supply Fittings: 6,000

TOTAL FIXED COST: 2,86,400

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B. Working Capital per Month

Sl. No

B. Working Capital(Particulars)

Quantity Rate Rupees (`)

1 • Banana pseudostem1.2 tonnes/day × 25

working days(WD) per month

30 tonnes per month

@ `25 / quintal (taking 1 stem as 20kg each cost Rs 5)

7,500

2 • Electricity8 units/ day * 25WDs /

month

200 units per month

@ `5 / unit 1,000

3 • Water use charges @ `250/ month(fixed)

250

4 • Fuel expenses: LPG cylinder

1 no @ `350 each 350

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Contd…..

Serial No. Particulars Quantity Rate Rupees (`)

9 Diesel expenses 10 litres @ `35 350

10 Miscellaneous expenses

500

TOTAL WORKING CAPITAL

40,950

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C. TOTAL CAPITAL INVESTMENT

FIXED CAPITAL: `2,86,400

WORKING CAPITAL: `40,950

TOTAL CAPITAL INVESTMENT: `3,27,350

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D. SOURCE OF FINANCE

PROMOTER’S CONTRIBUTION: 15% `49,100

NEDFi ASSISTANCE: 85%•Soft loan: @ 1% per annum•General loan: @ 8.24% per annum

` 81,836

` 1,96,410

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E. COST OF PRODUCTION / MONTH

WORKING CAPITAL: `40,950

Depreciation on Plant and Machinery

@ 10% Per annum `2,387

Interest on Promoter’s share

@ 10.25% Per annum `419

SUB TOTAL `43,756

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F. EXPECTED TURN OVER / MONTH

a. 500 Kg of undyed banana fibre

@ `62/ Kg `31,000

b. 500 Kg of dyed banana fibre

@ `66/ kg `33,000

TOTAL: `64,000

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G. EXPECTED PROFIT / MONTH

By Receipt `64,000

Less Cost of Production `43,756

NET PROFIT PER MONTH: `20,244

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BREAK EVEN ANALYSIS

• Fixed Cost: `2,86,400

• Variable Cost: `17,50,240

• Gross Income: `25,60,000

(Taking Production Period to be 8 months)

• BEP: Fixed Cost / (Gross Income – Variable Cost)

The Break Even Point is 35.36%

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“THANK YOU……..”