SUMMARY
Manufacture the Coir Pith block or Bags or as per customer requirements.
Get Customers with samples, get orders and start bulk production. (Partial Advance is preferable and widely used, remaining payment upon delivery)
Alternate: Tie up with other coir pith suppliers and add the production line as partner with own machine, get the share for the production
Market penetration and networking is key.
- Coir Pith from Coconut coir (wastage)
- B2B with Nurseries, Farming, Exports, eCOM
- Medium Competitive
- Investment – < 20~35L
- Active Income - Full Time Business
Concepts
Get resources from Coconut sellers, coconut farms, coconut oil mills etc., and buy the Coirs at INR15/kg.Manufacture the Coir Pith block or Bags or as per customer requirements.
Get Customers with samples, get orders and start bulk production. (Partial Advance is preferable and widely used, remaining payment upon delivery)
Alternate: Tie up with other coir pith suppliers and add the production line as partner with own machine, get the share for the production
Market penetration and networking is key.
Financials
Machineries – One time Cost; Around 10-15 Lakhs INR
Floor space – Monthly rent: INR 25,000 per month for 7000 SQFT - Outskirt or Village.
Workers – On demand or Monthly wage; INR 20000 per month for 3-4 persons
Operation and Maintenance - Monthly Machine running cost, Overheads, Training, Travel & Living, etc., - INR 15,000 per month
Marketing - INR 10,000 to 40,000 depends on Market Penetration
Average Market Sell price of one Coir Pith / KG - INR 25 to 35. Good Quality at high price.
ROI - 6 to 10 years. Duration depends to Marketing depth.
Strategy
Negotiate price of Machinery
Tie up with Coconut Farming / Coconut sellers / Tender Coconut Sellers
Customer’s order with Advance, remaining upon delivery.
Export to Abroad through existing Exporters, Middle East and Europe are the potential market.
Tie Up with existing Sellers
Future
Online e-COM store or link with existing e-COM stores.
Direct Export
Risks
Demand of raw materials and availability.
Initial Market penetration needs different strategy
Heavy Competition
Less variation of Coir Pith sell price
Online e-COM store or link with existing e-COM stores.
Conclusion:
This startup idea is suitable for Medium scale investments.
This needs regular raw materials.
Good to start for the Owners of Coconut field.
Long term returns are expected.
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