Project Report on Bamboo

Chapter-1 PREFACE A increase oriented Entrepreneur go away wipe push through littlely be in search of opport building blockies, which bottom generate income, enhance long-term range and ascendence recognition and respect in the society. Looking at the present easy- beingness atmosphere in the NE Region for develop handst of diligence, thrust by organisation of India for the development of environment hail-fel confused alternate imagerys and utmost notwithstanding not the least, the spectacular progress make by china in the bamboo establish attention The KOTHARI group has decided to vex up a unit in Guwahati to manufacture Bamboo storey, Board & related reapings.Du rout the exploratory phase, we reviewed reports & journals promulgated by forest department / NGOs on Bamboo resource in NE Region, vi internet sited & discussed with the Bamboo elevateers, met with machinery manufacturers in India & afield, attended seminars, studied mart for floor and its developm ent potential, consulted technocrats from India and abroad near the possibility of making base in India victimization India Bamboo. We veri display panel promote response and could hirel the potential. Now we ar determined to gear up up project and this report provides details on versatile surveys of the self corresponding(prenominal).Chapter-II encounter AT A GLANCE convergence Bamboo Flooring & Bamboo Panel Boards. crossing DESCRIPTION Bamboo trading floor/ room is the youthfulest and just about revolutionary returns in the base and inhumeior(a) decoration concept. The unique Bamboo grain provides an exotic oriental dish to the interior of some(prenominal) room, and the exalted note of Bamboo comp atomic number 18d to forest guarantees a sprightliness of enjoyment. Bamboo Flooring and Bamboo Board is overly the most environment friendly verbalism corporeal obtainable.Although Bamboo looks and be sees like a superior hardwood, it is actual a grass. un like wood forests, which dole out decennarys to regenerate, the Bamboo groves just take a few old age to re invigorated themselves. As consumer (especi bothy in real markets much(prenominal)(prenominal) as uniting America, Europe and Japan) become increasingly environment conscious, this has become a fuddled merchandise aspect of Bamboo products. Bamboos inseparable versatility is satisfactory to a conversion of environments. The holy product is alone told-around coated and protected against insects and fungus.It is able for all residential and commercial installations- in bedrooms, living room, kitchens, offices, schools and hospitals. PRODUCT FEATURES Bamboo Flooring & Boards argon made from 100% re bare-assable resource, which saves precious timbers. aside from this, it has so umpteen salient features- Incredible tensile specialization.Light weight . Excellent appearance. Harder and more inactive than wood. Easy to install. Creates friendly atmosphere for A sthma & Allergy patients. Excellent dielectric of raise up/cold. Environment friendliness Water- resistant. Numerous engagements. MARKET POTENTIAL The invite for Bamboo Flooring & Bamboo Panels be expending from South- East Asian Countries to European and Ameri notify markets.The multinational market for bamboo shock is estimated at Rs. 750 cores and it is expending at a rate of 50% p. a. Current trends in the interior decoration manufacture ar back to nature i. e. away from synthetics and towards more immanent products such as wood / bamboo. Due to health reasons, wood/ bamboo floors ar taking away the market sh be from carpets (bamboo floors argon hypo-allergenic and as a consequence, do not suffer from dust mite infection like some some some oppositewise floor c anyplaceings. In addition, wood sources argon suitable increasingly run th nettlesome and the consumer is becoming environ morally conscious, the market for bamboo products has increased exp one(a )ntially- for story, paneling, and a variety of products limited only by the imagination such as doors, frames, table tops, break items, photo frames etcetera Market response to Bamboo surp progression is more than encouraging particularly for its look, strength and high-class protective coating. With support from international agencies and practiced experts we be very optimistic about achieving timberland standards.INDIAN SCENARIO With booming face activities, scope for interior decoration activities has increased substantially. Of late, harvest-festival in authority of marble and granite is reducing as Interior decoration labor always looks for new products. there consecrate been imports of woody and laminated floors hardly prohibitive duties and vector sum landed price is restricting growth of such alternative products. In the domestic market, the size of the organized surprise market has been estimated at Rs. 1500 crores for all type of flooring. As the depi ct renders its own call for nd if the Bamboo flooring just nowt joint capture tear polish up 6-7 % of the market for flooring, it entrust mean a market of Rs. 100 Crores to being with and it is in all probability to grow at a rate of at least 15% per annum. Source INBAR Report Our sign market survey has given has us all the reasons to be turned on(p) about huge potential not only for flooring notwithstanding excessively for wall panels where on that point is absolutely no new product since last decade. Moreover, a product made in India result throw off fracture acceptability to biggerr cross section of price beautiful India consumers.PROPOSED expertness Bamboo Flooring / Panel 60000 Mtr2 / p. a. LOCATION exporting swear oution industrial Park, Guwahati. CAPACITY UTILISATION 1st course of study 70% p. a. 2nd Year 80% p. a. third class & in fronts 90% p. a. COST OF brook (Estimated) (Rs. n Lakhs) (a) globe & teaching 19. 68 (b) Building 51. 76 (c) appoint & Machinery 245. 52 (d) Misc. Fixed Assets 57. 10 (e) Preliminary Expense 0. 0 (f) surgical Expenses 49. 29 (g) skillful Know how & training 15. 91 (h) mete for functional ceiling 26. 07 (i) Contingencies 24. 81 MEANS OF FINANCE Contribution by the Promoters Equity by promoters 97. 3 Grant from NEC 50. 00 Contribution by the Funding Agencies (i) engine room Development Assistance from TIFAC 245. 00 (ii) Term Loan by Institution 98. 31 490. 44 Guarantee apart(predicate) from above, Guarantee in favour of Government of India to the tune of Rs. 0 Lacs for import of machines downstairs EPCG Scheme at concessional tradition duty. Subsidies and other incentives of groovy nature crap not been considered while decision making means of finance. The same stop be straightaway reimbursed of contribute. PROFITABILITY The gainfulness projections argon as follows trine form / normal year of operation (Rs. in Lakhs) gross sales Proceeds 494. 0 Cost of Sales 338. 18 Gro ss nark headway Before financial expenses 155. 92 Financial Expenses 34. 59 Depreciation 28. 53 Operating Profit 92. 0 Profit aft(prenominal) Tax 91. 18 Note Incentives such as transference subsidy etc. stool not been considered in the apostrophize of labor. The same can be directly reimbursed (as and when due) to the lending institutions as per-payment of loans. This will improve working of the company substantially. Chapter tercet INTRODUCTION Flooring plays a vital role in the aggregate appearance of any house /shop / building, whereas, very little dialect was given in onward motion and innovation of flooring real(a) in India.Since last few old age the aw beness about the importance of flooring has increased amongst Indian consumers and now there is a visible campaign from conventional cemented or mosaic flooring to Granite, Marble, Italian Marble, and Glazed ceramic Tiles etc. for many advantages over traditional flooring. Of late, due to ease in import, deman d for wooden flooring and laminated flooring is also increasing. Since most of these products be imported hence higher cost and we argon sure environmental aw atomic number 18ness will always keep Bamboo flooring ahead of wooden flooring. in that location is huge market potential of Bamboo Flooring and Boards in India as vigorous as abroad. As per the Country Report India prepargond by internationalist Ne bothrk for Bamboo and Rattan (INBAR) on Bamboo Value-added industry, size of the domestic organized flooring market has been estimated at Rs. 1500 Crore for all types of subvention flooring. Architects are of the opinion that since tally creates its own demand, it would be affirmable for Bamboo Flooring to capture 6-7 % of the market. This will closure in a domestic market size of Rs. 100 Crore to lead off with.Growth of the industry is estimated at 15% in the Indian market. DESCRIPTION OF THE PRODUCT AND USES World over wooden Flooring is considered to be more up market c ompared to cement, marble, tiles etc. It enhances the warmth of any house and complements the decor of room. debar with scarce timber resources and increasing environmental awareness people are shifting towards Bamboo Flooring, which is equally attractive and technically better than woodlanden Flooring. The graphic grains of Bamboo show up clearly and look very attractive. It looks very unique, elegant, and serene.The flooring is resistant to wet, pressure, and scratch. It is flexible and lasts longer than wood. It also acts as sound and heat insulator. Bamboo flooring/board is the newest and most revolutionary product in the flooring and interior decoration industries. The unique Bamboo grain provides an exotic oriental bag to the interior of any room, and the high quality of Bamboo compared to wood guarantees a biography of enjoyment. Bamboo Flooring and bamboo board is also the most environmental friendly manifestation fabric taketable.Although Bamboo looks and be yield s like a superior hardwood, Bamboo is actual grass-unlike wood forest, which take decades to regenerate, the Bamboo groves only take a few years to renew themselves. As consumers (especially in developed markets such as North America, Europe and Japan) substantiate become increasingly environmentally conscious, this has become a inviolable marketing aspect of Bamboo. Bamboos natural versatility is suitable to a variety of environments. The end product is all-around coated and protected against damp, insects, and fungus.It is suitable for all residential and commercial installations in bedrooms, living rooms, offices, showrooms, hotels, restaurants, banquet halls, discotheques etc. Standard Bamboo flooring is manufactured as an all around tongue and groove board a variety of sizes can be produced, the most popular being 900 mm X 90mm X 15mm, 600mm X 90mm X 15mm. Among the many possible lamination, the most common are protected with 3-layers of UV coating. COMPETING PRODUCTS Marbl e Granite Wooden Flooring Carpet PVC Flooring Ceramic Tiles Laminated Flooring ADVANTAGES OF BAMBOO shock ) Bamboo is harder than confused species of wood. It is 25% harder than oak, 23% harder than Rock Maple. So it is more stable. waxy strength of Bamboo is 28000 psi, which is even more than poise. ii) Bamboo floors are hypoallergenic and as a consequence, do not suffer from dust mite infection like other floor coverings. It creates friendly atmosphere for Asthma & Allergy patients. iii) It is an excellent insulator. So in cold climate it helps by keeping the room temperature warm, and in exploit atmosphere, it helps in power saving by brinytaining room temperature. v) Bamboo flooring is U. V. Coated, which is very hard, scratch resistant, moisture resistant. v) It is easy to fight. It can be easily cleaned with vacuum cleaner. vi) It has got excellent appearance. vii) It is lightweight and easy to install. viii) Bamboo flooring are impregnated with chemicals which makes it termite proof. ix) It is made from 100% renewable resource, which saves precious timber. So it is environment friendly too. THE LOCATIONAL ADVANTAGES The proposed unit is to be set up in the Export Promotion Industrial Park (EPIP), Amingaon ,Guwahati.We ingest considered different factors while selecting the site and name that there are versatile advantages of position up the unit in Guwahati. just about of them are as chthonic- a) Availability of raw as existent Due to high volume and low weight, any Bamboo related merchandise has to be near the source. Major raw material, Bamboo is abundantly unattached in and around Guwahati. Bamboo can be procured from lifters in Assam, Meghalaya, Mizoram, Agartalla and North Bengal. b) Availability of arch(prenominal) Manpower The local anaesthetic people of Assam have gained natural skill of Bamboo craft.They derive bamboo vary considerably. For these reasons, it will be much easier to train a local person. c) Availability of Land This unit requires a converted shed of 8000 sq. ft. and excess space for storage utility and for future expansion. AIDC has confirmed availability of needful land at EPIP, Amingaon. d) Availability of Utilities Power Uninterrupted power supply is available to all the units set up in EPIP. This will be an advantageous situation. Water Water is also easily available. moveSteam will be indispensable for manufacturing of Bamboo Flooring, which is plan to be produced by putting up a coal-fired boiler. Good quality coal is available from Meghalaya at a very economical price. e) Availability of Transport EPIP, Amingaon is located attached to Guwahati dry port. All the dispatches to overseas market can be book from there itself. Moreover, Guwahati is headspring connected by rain and road cogitate with other parts of the country hence transportation of finished product & raw material will have no difficulty at all. f) Subsidies & IncentivesGovernment of India & Governments of As sam is giving various incentives and concessions for the new unit put up in Assam such as Sales Tax exemption. Excise exemption, Income task exemption, and various other subsidies. g) Infrastructure facility Guwahati, the proposed location of the unit, is the dandy metropolis of Assam which has got all the infallible amenities such as schools, hotels, hospitals, colleges and other pleasure facilities. Chapter IV RAW MATERIAL BAMBOO AN INTRODUCTION As the name suggest, the Bamboo Flooring are manufactured using Bamboo. Bamboo is an immensely useful and highly renewable natural resource.It has been utilise by people most notable in Asia since time immemorial, and its remarkable versatility as raw material is attested to in our day by a list of products which is as long as that of the 1,573 known bamboo species. From food, folder, fencing and fuel to flooring and furniture to flutes, fishing rods and even false teeth, bamboo products are used by an estimated 2. 5 billion peopl e, or almost half of the worlds population. Although we in India are using Bamboo in various application but not much has been make for technical improvement of the manufacturing process of various products made by Bamboo.Comparatively a lot of research has been done in China to make better products. Value addition to Bamboo has been negligible in India. Bamboo, the worlds most useful plant, is a very large grass rather than a tree, yet has a timber-like quality when used as a bend material. It is the fastest emergence plant in the world and certain species can reach heights of over 100 feet at rates of up to 5 centimeters per hour. It is harvested for commercial usage after(prenominal) three to five years.This botanical cousin to inscrutable and corn has over 1,000 species of varying sized and traits makes it surprisingly versatile it may be used for building whole houses, furniture, cases, baskets, screens, farm tools, fishing rods, windmill blades, boat building, record ne edles, paper, kites, blowguns, polish, diesel fuel, scales, food, medicine, chopsticks, incense sticks, musical comedy instruments, blinds, concrete reinforcement, plastic reinforcement, hold up, cables, both substitutes, piping, bike frames, various other structures and a host of other durable, useful, crafted items. Bamboo is also used for brewing beer.An Edison light light bulb in the Smithsonian Institute in Washington, D. C. has a bamboo filament, which is s till capable of vehement after more than a century. The bamboo cable-supported Min Bridge in Szechwan is over 1,000 years old. BAMBOO AND ITS USES China In a remarkably short intersect of time, the bamboo celestial sphere in China has transformed technologically and structurally. The last decade has seen China emerge as a pioneer in bamboo enjoyment and a market leader offering a variety of new products and processing techniques. The latest development in China has been the usage of bamboo as a viable replacement for wood.Bamboo mat boards have been acknowledged as an excellent substitute for plywood. Rapid growth of the bamboo plywood industry has instilled a new vibrancy in the heavens. Bamboo has also been used to substitute plastics, steel and cement in new application in bodily structure of houses, and manufacturing of furniture and agricultural tools and implements with application of sophisticated design, knowledge and use of improved building complex technologies. Bamboo has an important industrial role in paper & pulp manufacturing in China. With a large and expending market, China is the world leader in bamboo engage production and custom.Growth of significant scale in China bamboo sector has been possible through coordinated research and its application, incentive regimes, provisioning of support services, tilts in agro forestry practices, and the fostering of close linkages with markets. some other Southeast Asian Countries In other Southeast countries, even so, apart from T hailand, which now boasts of bamboo shoot export equivalent to that of China, there has been little or on progress. It is still only the rural scant(p) who continue to be principal users of bamboo. In Bangladesh, 80-90 % of rural houses are constructed from bamboo, as are many rural d well upings in India.Philippines, Nepal and Thailand. South America In South America, bamboo physical exercise is small compared to Asia, except in localized areas. A large bamboo specie Guadua anaustifolia, has been used for a housing programme in Costa Rica through a large-scale internationally funded bamboo project. All primeval American countries have shown enkindle in this project. South Africa Bamboo is prised in Kenya for soil stabilization. It is used to some bound in construction and fuel. India In India, the principal usage of bamboo is in the paper industry, as scaffolding in construction material or in the affairs sector.Among other uses, bamboo splits or wholes are used as a fencin g material and for making various types of tool handles, ladders, and scaffolding. Splits as well as slivers types of tool handles, ladders, and scaffolding. Splits as well as slivers are used to make a big trope of products such as baskets, the core of incense-sticks, kites and toys, flutes and a large number of handicraft items. They are used to make cages for poultry, drying, packaging, and transport of grains. Bamboo slivers are woven into mats and used to manufacture mat boards. However there is very limited value addition that takes place on these products.Also, since there is no automation in the manufacturing process, the manually made products are often of non-standard sizes. The major(ip)ity of these products are consumed and exchange at the local market- take aim only. The bulk utilization of bamboo in industry is in the manufacture of paper & pulp. The 13. 47 zillion tones of bamboo harvested annual gets employ industrially in paper mills, as scaffolding in fencing , for inseparable manipulation in bamboo-growing rest homeers, handicrafts and miscellaneous items like incense-sticks, ladders, ice-cream sticks, agricultural implements etc.Again, no reliable estimates of quantities are available for any of these items. The estimate of consumption in each of the above categories is based on primary information and on an summary of the industry size and growth rates. Paper The total production of paper in India is 205 jillion tones. Paper industry experts have indicates that 25% of the raw material requirement of the industry is soon met through bamboo. thereof, the quantity of wet bamboo required for this is 2. 5 million tones (4 kg of wet bamboo is needed to produce 1 kg of paper. )Internal Consumption According to the survey among grower households in the NER, cozy consumption for fencing, baskets, temporary structure, fishing rod etc. is 10% of the harvest. Of 13. 47 million tones, this translates to 1. 35 million tones approximately. S caffolding The value of scaffolding is 0. 1% to 0. 5% of the total value of the construction industry. The total value of the construction industry in India comprising the residential, commercial, industry and infrastructure segments is soon estimated as Rs. 292,000 crore. assume 0. 25% value of bamboo scaffolding in the residential and commercial segments and 0. % in industrial and infrastructure construction, the total value of bamboo used for scaffolding is Rs. 340 crore (for 3. 4 million tones-price of one tone of bamboo is Rs. 1000) Handicrafts nigh 5. 9 million tones of bamboo is utilized in commercial consumption in the paper industry and for scaffolding purpose. Taking a ratio of 3. 2 for commercial to internal consumption and making of handicraft, etc. the figure arrived at is 3. 9 million tones. Of this, 1. 35 million tones are used for internal consumption, leaving a equilibrize of 2. 55 million tones, which is used for handicraft.These complicate baskets for decorat ive as well as packaging purpose (for carrying fruits, vegetables and livestock, etc. ), sericulture trays, mats, wall coverings, and furniture items such as stool, chairs, tables etc. Miscellaneous Bamboo is also used for incense-sticks, ice-cream sticks, toothpicks, chopsticks, agricultural support in field, implements and tools, ladders, lathis, walking-sticks, fishing rods, boat masts, bows and arrows, flag poles, paddles, kites, fire crackers, etc. Agrabatti (Incense-stick) About 1,000,000 million incense-sticks are produced annually.Since 1000 sticks weight 1 Kg, the weight of 1,000,000, million sticks is 1 million tones. The weight of bamboo in 1 million tones of incense-sticks amounts to 0. 33 million tones. To produce 1 Kg of bamboo sticks, for incense-sticks, 2 Kg of bamboo is needed. hence 0. 67 million tones of bamboo is consumed by the incense-sticks industry. Ladder The construction industry is currently valued at Rs. 292,000 crore, if 0. 02% is attributed to ladders used for construction the value of the ladder industry is in the reign of Rs. 58 crore which is equivalent to 0. 29 million tones of bamboo.As per Hindu custom, biers are used to carry the dead to the cremation ground. The death rate is currently 7. 8% which amounts to 7. 8 crore deaths per year. If bamboo biers are used in 5% of the cases, there would be a requirement of 400,000 bamboo annually, which is equivalent to 0. 08 million tones of bamboo (assuming 20 Kg bamboo per bier). The total bamboo consumed in ladder production is 0. 37 million tones. Other Application Ice-cream sticks, chopsticks, toothpicks, agriculture props, implement and tool handles, walking sticks and lathis, boat masts and paddles as well as fishing rods, etc. onsume at least another(prenominal) 0. 93 million tones of bamboo annually. The total consumption of bamboo for miscellaneous purposes thus amounts to 1. 97 million tones. Illegal Exports Of the total harvested quantity of 13. 47 million tones, 11. 77 million tones are used as described in the foregoing. The chemical equilibrium 1. 7 million tones could be attributed to the illegal trade mingled with the NER and coterminous countries (Bangladesh, Nepal and Myanmar). BAMBOO STOCK POSITION 1995 TO 2001 Experts suggest that 150 million tones of bamboo was available in the year 1995. in that respect are limits to the regeneration of bamboo since it can be regenerated only to the extent of the harvesting that takes place. The growing stock of bamboo is 150 million tones, of which 2. 35 million tones harvested from private forest can be assumed to depleted every year from forest. The current net availability of bamboo is 133 million on as as-is ground. However, all of this is not in usable from. There are certain factors that have to be used to discount the quantity of available bamboo. CHARACTERISTIC OF BAMBOO CULMSThickness of the culms The culm of the bamboo is hollow in most cases and its wall thickness varies across species . Different species of bamboo have different wall thickness. A few species of bamboo, however, are solid. The general properties of the bamboo culm vary according to its anatomical, chemical, physical and mechanical characteristics Bamboo is particularly strong at the node where there is an inner disc called septum, which connects the outside walls, beef up the stalk and separating it into compartments. Bamboo is widest at ground level, but is preferably consistent in diameter throughout its length.Anatomical structure of the culms The bamboo culm consists of two epidermal layers, the inner one is thicker and highly lignified while the outer one is cover by a cutinised layer with a wax coating. The outside quite a little of the culm wall is dense, containing about 5 percent silica. It has an exterior waterproof film on the softer interior portion as well. The cells in the culm are axially oriented in the inter-nodal region and provide transverse interconnections in the nodal regi on. There are no radial cell elements and therefore, afterwardal movements of nutrients or liquids is greatly hindered.The internodes of almost all bamboo species have a culm wall of varying thickness surrounding a large cavity called a lacuna. The density of bamboo varies from 500 to 800 Kg/m3, depending on the moisture content. It increases progressively from the central to the peripheral parts of the culms. Chemical characteristics of the culms The culm are consists of about 50% parenchyma, 40% fibar and 10% conducting tissues with some variation depending upon species. The major chemical constituents of a bamboo culm are cellulose hemi cellulose and lignin while minor constituents are resins, tannins, waxes and inorganic salts.The chemical composition various with species, condition of growth, age, season, and part of the culm. The nodes contain little water-soluble extractives, pentosans and lignin but more cellulose than internodes. The silica content is high in the epidermi s, very little in the nodes and none in the internodes. The nodal portion of a clum has tower hemi hemi cellulose content, but a higher content of extractives, pentosans, lignin and ash than the inter nodal portion. As a result the node is not elastic exuberant for splitting or for making strips and matting.Bamboo culms for weaving are therefore chosen from species that are easy to split and are not old equal to be brittle (preferably below two years). Physical characteristics of the culm One aspect of the structure of bamboo is noteworthy unlink wood it does it does not have any rays (the vestige spots on the surface). Rays transport and store food, mostly sugar, but they better the material. Consequently, bamboo is stronger than wood, especially in shear. The wall thickness and length of the bamboo makes it naturally durable. The master(a) portion is therefore more durable than the top.Bamboo possesses very high moisture content, which various with age and the season of fell ing. The moisture content also various from bottom to top and from the innermost layers to the periphery, and decreases with age. The shrinkage is related to wall thickness and culm diameter. Mechanical characteristics of culms Bamboo is known for its high tensile strength. To reach its optimum strength there is an age of maturity for each species. In air-dry bamboos depending on the species, the moisture content various from 7 to 18%, specific sombreness from 0. 428 to 0. 17, fiber stress at elastic limit from 16 to cxx N/mm2 modules of rapture from 33 to 160 N/mm2, modules of elasticity from 3 to 22kN/mm2 and compression strength parallel to grain from 26-78N/mm2. The Physiological Structure of Bamboo The vegetative parts of a bamboo plant consist of root, rhizome, culm, culm-sheaths, branches, and leaves. Roots The profuse, fibrous roots from a dense network in the soil. Rhizome The basal portion of the culm, which grows horizontally under the soil surface with short internode s, is called the rhizome. In its natural habitat, the bamboo plant grows from seeds or rhizomes.Unlink trees bamboo does not have a central dust the rhizomes provides the foundation. The extensive rhizome system stores the nutrients required for the plants fast growth. The rhizome branches out from the root facilitate the vegetative propagation. This reproductive characteristic makes bamboo an active spreading plant which unless inhibited will extend growth over a large area. There are two types of rhizome system namely Sympodial and Monopodial. In the sympodial system, the apex of the rhizome gives rise to a shoot that grows into a culm, the woody stem of bamboo. These culms grow together as clump.In the monopodial system, the lateral bud from each internode develops into a clum or a rhizome. As the apex of the rhizome grows horizontal to the ground at a distance from one another. Culm A shoot of bamboo is usually hollow except at the nodes, which are often swollen. A young shoo t is protected by a number of sheaths, which fall off as the shoot grows into a mature culm. In the hollow inner area, there are some horizontal partitions called diaphragms. On the outside these partitions have a ring around the culm. The diaphragm and the ring outside together from a node. Branches grow from these nodes.The part amidst two nodes is called an inter-node. The internodes of most bamboos are hollow, that is, they have a cavity. The wall of the culm is simply the clum wall. Chapter V MARKET POTENTIAL The Bamboo Flooring is becoming popular because of its better look and superior quality over other flooring materials. THE INDIAN SCENARIO The materials commonly used for flooring in India are Granite, Marble, Mosaic, Cemented floor etc. Since last few years, wooden flooring has also becoming popular in India. These different types of flooring are available in wide range of prices starting from Rs. 0 per sq. ft to Rs. 700 per sq. ft. The use of wooden is increasing partic ularly for application in offices & showrooms, banquet halls, discotheques, hotels, restaurants, assemblage rooms etc. There is a myth among the consumers that it is not suitable for Indian climate whereas wooden flooring is considered to be very well-to-do and it also helps in power saving particularly in the air-conditioned atmosphere. The consumers are required to be educated about the advantages of these flooring. Bamboo flooring has not yet been introduced in the Indian market.But considering its advantages over Wooden as well as bring shift from some of premium flooring presently available in the market. Bamboo flooring which is less expensive than other premium flooring is scratch & moisture resistant because of high quality U V Coating, there should be good demand for the product in India. As per the Country Report India published by International engagement for Bamboo And Rattan (INBAR) on Bamboo Value-added Industry, the total market for Bamboo flooring in India has be en estimated at Rs. 200 Crores which is likely to grow at a rate of at least 15% per year.THE INTERNATIONAL SCENARIO There is an export potential, which can be realized for bamboo-based flooring. There is Rs. 750 Crores market for Bamboo flooring which is growing at a rate of 50% per annum. Indian companies can trap this growing demand. China is a major player in the filed of Bamboo flooring. They have been constantly researching on the manufacturing technique of Bamboo flooring & related products and hence they have an edge. However, for India companies, it will not be a problem to compete technically with China considering developed wood working industry in India.Moreover the species of Bamboo available in India are also considered better for manufacturing of Bamboo flooring because these are harder than the species available in China. Chapter VI TECHNICAL FEASIBILITY TECHNICAL KNOWHOW Although not much been done in India respect to technicalities of Bamboo Flooring manufacturing. We happen Indian machinery manufacturers will have no difficulties in providing most of the machines by modifying there existing machines as per process requirement. Moreover, well-developed wood working machinery industry in India will be an surplus advantages.All the basic machines required for this project are either readily available in India or needs little modification to make them suitable for this specific application only very few finishing machines are proposed to be imported from Taiwan/Europe. In 2001, United Nations Industrial Development Organization (UNIDO) established reprimand & Bamboo engineering science common snapping turtle (CBTC) in Guwahati which helps in implementation of Bamboo & Cane related project, delivers technical assistance and arrange for training of man power required for this project.The United Nations Development Programme (UNDP) support Cane and Bamboo Technical Up gradation and boodleworking Project, covering the seven-spot North Easter n States of India. The Cane and Bamboo Technology Project is a sub-programme of the large Technology Management Programme (TMP). The Development of Science and Technology, Government of India is the death penalty Agency for the TMP. While the United Nations Industrial Development Organization (UNIDO) is the delegate Implementation Agency. The CBTC acts as the secretariat and coordination body of the Network and is the conduit for the networks linkages.OBJECTIVES The Cane and Bamboo Technological Up technologies and Networking Projects envisages the following as its major areas of interest Identification, adaptation and dissemination of technologies for economic enhancement of craftspeople small entrepreneurs in the Cane and Bamboo Sector of North East India. Strengthening existing institutions by enhancing their networking capacities and linking them with narrow down institution in India and abroad through the Cane and Bamboo Technology Center (CBTC).Enhancing access of craftspeop le and small entrepreneurs to improved technology and knowledge thereby promoting utilization opportunities and income generation ROLE OF THE CBTS The CBTS is expected to play multiple roles, which constitute playing as a repository of information and technologies Playing out the role of a coordinator of sub-programme activities Being a vehicle for the sharing of information amongst resource and support institution, entrepreneurs, craftsmen and villagers. Acting as a platform for networking amongst constituent elements of the sectorPerforming as a catalyst to enhance the scale and depth of economic occupation in the sector FOCUS AREAS Generally speaking, the primary and secondary areas of centralize are firstly, on promoting poverty eradication and sustainable livelihoods, and secondly on generation of sustainable livelihood and employment opportunities. The main focus areas are The need to evolve and promote a better understanding of the sector Set agenda for coordinated R & D activities, strengthen institutions and agencies and create coordination mechanisms for the sectorReview the regulatory and access regime-in forest areas, for agro-forestry and at the household/homestead level Disseminate technologies and knowledge Provides support services for the sector MANUFACTURING PROCESS The process for manufacturing of Bamboo Flooring can be divided into three parts 1. fashioning of Bamboo flake offs a) Straight, 4-5 years matured Bamboo is cross cut into the required length. b) Out-side knots are removed. c) Bamboo is put through a splitting machine to split the strips of required width. d) intimate knots and outside skin is removed. ) Strips are boiled and treated in a mixture of water, hydrogen peroxide and boric acid to remove sugar, starch, mildew, and pests. f) Strips are put in Impregnation plant where chemicals are injected under high pressure to protect the same from insect/pest attack for lifelong. g) later on open drying, the strips the same ar e nevertheless dried in a Kiln to bring down the moisture level to 8-10%. h) For giving darker brownish complete to final products, strips can be given Carbon treatment by putting the same under high heat/pressure causing coloration impregnated throughout the sticks. ) for each one strip is then passed through Four-side homework machine to get accurate rectangular shape. 2. Making of Bamboo Board After thorough sorting, i) Strips are cut into the required length in the surface machine. i)Glue is applied in the Gluing machine. i) Glued strips are assembled together into rough board. i) These rough boards are given required pressure in Hot express (specially designed for this process). i) Boards are put into a Chilling Press for something till the temperature comes down to normal. i) One surface of duly pressed boards is finished on Planing machine. . Making of Bamboo Parquets a) The specific size of Bamboo boards is passed through a rip see to make one side plain. b) The side tongue & groove is move into the board. c) The board is passed through a cutting and shaping machine where the end tongue & groove is milled. d) The parquet is passed through a wide blame sander for the top sanding. e) UV Basecoat is sprayed on the bottom and side of the parquets to make it moisture resistant and then again through a peal coater for top coating of UV Basecoat. f) Painted parquet is passed through U. V. exercise set machine for hardening of the chemical (coat). ) It is again passed through a wide belt sander for peacefuler sanding. h) The above process (e, f & g) is recurrent again for better finishing. i) U. V. finishing coat is applied on the Parquets through Roller Coating machine. j) Parquets are passed through U. V. Curing machine for hardening. k) Each and every parquet is thoroughly inspected and the same is packed in the fold boxes. Process flow has been shown in the side by side(p) Sheet. EFFLUENT TREATMENT There will not be any Water/Air/ give out po llution. It has been proposed to install. Dust collectors for the collection of Dust generated in the process.The Bamboo dust can later be used for manufacturing of Particle Board. Similarly Dust collector & chimney will be installed with the coal boiler. AVAILABILITY OF RAW MATERIAL The major raw material required for this project is Bamboo, which is abundantly available of bamboo in India, particularly in North East Region. India has the second largest reserve of bamboo in the world out of which NE Region accounts for 54% In NE Region, apart from the Bamboo available in the forest, there is a tradition to grow bamboo in the homestead, garden, field barriers etc.AVAILABILITY OF MACHINERY Different machines required for the primary processing of bamboo are available in India. Other machine such as Strip Sizing Machine, Gluing Machine, Bamboo Board Joining Machine. One Side Planer, Rip-Saw etc. are available in India particularly for wood working however, the same can easily be modi fied to make them suitable for this specific application. Some important finishing machines such as Five Side excoriation Machine, Double end Cutting Machine, Wide Belt Sanders, U V Coating Machine etc. Are being proposed to be imported.Wherever possible, we have opted for the Indian machines so that after-sales services and spares can be made easily available as and when needed and it will also reduce the cost of the project and thereby reduces the financial burden. We are ensuring better machines without compromising the quality. choice of the plant and machinery has been done considering different stages of manufacturing process and balancing the capacity. PROPOSED PLANT CAPACITY The manufacturing capacity of the proposed plant will be 60000 meter2 per annum. This is the minimum viable capacity. The same can be increased in shorter duration.It is unlikely for a new unit to achieve maximum capacity utilization in the sign years of operation owing to various factors like stabili ty in process coordination, training of working, supply of required quality of raw material and consumables etc. therefore, all the calculation have been made of 70%, 80%, 90% capacity utilization in 1st, 2nd, & 3rd year onward singly. PRODUCT SPECIFICATIONS The Bamboo flooring are available in different styles, colours, finished and sizes, which are as under- A) styles I Horizontal Bamboo strips are joined horizontally. II. verticalBamboo strips are joined vertically. B) Colours Coffee 7 Natural There can be different shades from normal to dark brown. C) finis Matte & Glossy. Other finish such as semi-gloss, 6535 Matte & Gloss etc. can also be made as per the market demands. D) Sizes 900 mm X 90 mm X 15 mm. 600 mm X 90 mm X 15 mm 900 mm X 90 mm X 12 mm 600 mm X 90 mm X 12 mm These are the sizes commonly sold in the market but Parquets can be manufactured in different sizes and thickness. MAN world power REQUIREMENT Total requirement of manpower can be mostly divided into two cat egories 1. Technical PersonnelThe technical personnel include engaged in production, maintenance, running of utilities and services facilities etc. These can further be categorized as a) Factory Staffs b) Workers Chapter VII ECONOMIC VIABILITY h) Land & development The plant is proposed be put up in Export Promotion Industrial Park (EPIP), Amingaon, guwahati, developed by AIDC. We have already approached AIDC for availability of land and they have assured us land as per our requirement on long-term lease (60 years). Various other expenses on site development such as land leveling, boundary wall, internal roads, etc. ave been considered while collusive the total cost of land and site development. The details of which are shown in the table below- h) Building A covered shed of 8000 sq, ft. will be required for smooth operation of the plant. Apart from this, a semi pucca shed will be required for explorative Bamboo processing and space will be required for administration, storage, ut ilities etc. We have planned the layout for the building considering different areas of operation, safety regulation, provision for ventilation, free movements of men and material etc.The building construction cost has been estimated based on the offers veritable from local builders. The total cost of building is estimated at Rs. 51. 76 Lacs as explained in the Table below- c) represent & Machinery The selection of Plant & Machinery has been done based on the offers received from various machinery suppliers, their technical competitiveness, price, after-sale service simplicity of operation, cogency of the machine, guarantee etc. The total cost of Imported & Indigenous Plant & machinery are shown in the Tables on the next sheet. d) Miscellaneous Fixed AssetsApart from the main plant & machinery, various other equipment will be required such as Boiler, D. G. Set, Compressor, material handling equipments, fire fighting equipments, furniture & fixtures, office equipments etc. We have worked out the requirements of such equipments, the details of which are as under e) Preliminary & pre-operative expenses This includes the expenses for company formation, interest during construction period, initial expenses on traveling, communication and other basic expenses during the pre-operation period. Total preliminary expenses are Rs. . 30 Lacs and preoperative expenses has been estimated at Rs. 49. 29 Lacs. f) Contingencies Provision has been made towards contingencies in the total cost of project. The details of which is as under g) Technical Know-how & cooking The total cost for Technical Know-how, Training of technical personnel & consultants fee has been estimated at Rs. 15. 91 Lacs. The detailed calculation has been shown in the next table. h) Margin money for working capital The total requirement of working of capital is estimated at Rs. 6. 07 Lacs. The detailed calculation of requirement of Working capital has been shown in the next table. SOURSES OF FUNDS The to tal long-term fund requirement of the proposed unit is estimated to be Rs. 490. 44 Lacs, which is proposed to be financed as under Subsidies & other incentives of capital nature have not been considered while deciding means of finance. The same can be directly reimbursed to the finding institutions towards repayment of loan. We seek justness participation from institutions for reducing interest outgo at least for a period of 3-5 years.The same can be brought back by the promoters at mutually agreed terms. TOTAL COST OF MANUFACTURING It has been reckon by calculating cost of raw material, salary & wages, power & fuel, consumables, repair & maintenance, factory overheads etc. These calculations are based on certain assumption during the 1st, 2nd, & 3rd years & onwards of operation has been assumed to be 70%, 80%, & 90% respectively of the installed capacity. The installed capacity of the proposed unit is estimated at 60000 meter2. the cost of various items has been calculated as per the prevailing rates in the market.Incentives such as transport subsidy, D. G. Set subsidy etc. have not been considered. The same can be directly reimbursed, as and when received, to the lending institutions as prepayment of loan. This will improve the working of the cost of manufacturing estimated for the next 10 years. RAW MATERIAL Bamboo is the main raw material for making Flooring. We have worked out requirement of Bamboo after considering wastage. Farmer have to be educated to harvest our required quality of Bamboo which may take some time.It is therefore estimated that in the 1st year of operation we shall have higher wastage. Such wastage will gradually reduce. We shall have incentive scheme to encourage farmers for regular flow of homogeneous quality of Bamboo. This will lead to lower wastage, reduced cost of production and smooth operation on the machine. We assume after 3rd year we shall get advantage of regulated supply of Bamboo clums. CONSUMEABLE AND STORES This inclu des Glue, U V coating material, various chemicals for pre processing of bamboo, packing material, stores & spares etc.Requirement of the same at 100% capacity utilization has been shown below POWER The total annual requirement of the proposed unit kit and boodle out to 791900 KVA at installed capacity. Calculation of requirements of power and cost has been shown as under FULE The total annual requirement of Coal for running the boiler has been worked out at 1408 MT per annum at installed capacity. Calculation of requirements of Coal and cost has been shown as under SALARY & WAGES The requirements of Skilled, Semi skilled and unskilled fatigue has been orked out as per the production process and machine hours. The requirement of Technical & Supervisory personnel & their total Salary & takings has been calculated in the Table on the next sheet. We have also estimated an annual increases of 5% in the Salary & Wages and have also provided for bang benefits 25% of Salary & Wages. RE PAIRS AND MAINTENANCE The repair and maintenance of the capital assets has been taken at 1%, 2%, & 3% of the total cost of fixed assets in the 1st year, 2nd year, and 3rd year & onwards respectively.FACTORY OVERHEADS Overheads such as Rent and Taxes, Insurance, miscellaneous expenses have been considered on best judgment basis to make adequate provision in the total cost of production. These have been estimated at Rs. 13. 74 Lacs in the first year of operation. We have also made a provision of increase in this cost 10% per annum. ESTIMATE OF COST OF gross sales, AND PROFITABILITY The estimate of cost of sales, actualisation & positivity for the next 10 years of operation has been shown as under ADMINISTRSTIVE & SALES SALARYThe requirements of Administrative & Sales personnel & total Salary & Wages has been calculated as under We have also estimated an annual increase of 5% in the Salary & Wages and have also provided for Fringe benefits 25% of Salary & Wages. ADMINISTRATIVE OVE RHEADS Adequate provision has been made for administrative overheads and estimated at Rs. 12. 83 in the subsequent years. SELLING OVERHEADS Being a consumer product planned sales promotion and regular advertising will be essential apart from organizing sales meet and participation in fairs.Total sales expenses have been estimated at Rs. 33. 68 Lacs in the first year of operation. This includes 7% of sales realization of finished goods towards advertisement & publicity and proportionality towards miscellaneous sales expenses. A provision of an annual increase of expenses at 10% has been made in the subsequent years. PRODUCTION SALES identification Calculations of the sales realization are based on the prevailing merchandising price of the product in the international market. The details of sales realization at 100% capacity utilization are as under INTERESTInterest on term loans for capital investment and depository financial institution borrowing for working capital has been work ed out as under Working capital from Bank 15. 00% Term loan from Financial Institution 15. 00% Technology Development Assistance from TIFCA 4% The details of repayment of term loan and interest thereon have been shown in the next two tables. pecuniary PROJECTIONS Various financial projections calculated for the proposed unit which confirm the economic viability of the project, are . CASH FLOW STATEMENT The cash estimates for 10 years are given in the table below- 2. BREAK-EVEN ANALYSIS The details working on break-even point has been shown in the table below We have taken the figures of 3rd year of operation i. e. optimum year for the purpose of calculating break-even point. 3. unit COST OF PRODUCTION Total Works Cost of Sales, Contributing & Net Contribution of each square meter/Square feet has been shown in the table below 4. BALANCE SHEET Project Balance Sheet for next 10 years of operation is as under SWOT ANALYSISStrengths great Bamboo source for commercial exploitation a t competitive price. Local people with skill to make Bamboo handicraft will be suitable for this project. same set of machines can produce other related products such as ceiling boards, door panels, wooden flooring etc. Weakness There is no defined goal or policy for encouraging planned bamboo cultivation. Wastage will be higher in the initial phase. Farmers have to be educated for maintaining quality requirements. Opportunities The usage of wood is on an increases but wood resources are declining in India.Moreover the Supreme Court has banned felling of timber in North East region resulting in closure of plywood units. Wood import can be reduced if Bamboo-based products. Threats Bamboo Flooring industry is well established in China. Their product is already acceptable in the international market. We will have to compete with them in future. There can be shortage of particular of Bamboo after flooring, which is likely to take place between 2003-2007. Poor infrastructure in the Nort h East. SENSITIVITY ANALYSIS esthesia Analysis gives an indication of how sensitive the project is to changes in certain assumptions.This analysis has been carried out to see how the profitability would change if there is certain change in the factor concerned. This sensitivity shows the effect of increases and reductions in raw material price, capacity utilization, sell price, publicity expenses and the profitability shows the impact of that particular factor. expletive ANALYSIS The following analysis gives an overview of the environment in which the Bamboo flooring industry will have to operate. We have analyzed the Political, Economic, Socio-cultural and Technological environment for the industry.POLITICAL surroundings I Finished Product Even if Bamboo flooring is imported at 0 duty from China, the landed cost is quite high compared to our proposed selling price. The local selling price in Nepal market is also quite high due to higher Bamboo procurement price to them. Hence w e do not see any threat from imported Bamboo Flooring. We may however have to compete with the other Bamboo Flooring manufacturers in the country but that would also add to overall market growth and awareness of the product. II Import Duties on ConsumablesImport duty on consumables is also very high. The only consumable, which is required to be imported at the initial stage, is U V coating. Cost of U V Coating to the total cost of production is 3. 50% only (including duty), hence it will not significantly postulate the profitability. III Other Levies Since this unit is being put up in Assam, products will be exempted from Sales tax & excise duty. Thus it will be at an advantageous position as compared to any other unit, which may come up in other parts of the country. IV Ban on falling of Trees Supreme Court of India banned felling of trees in NE Region.This will make wooden flooring a pricey substitute. In the recent years, Government of India is giving all thrust for adding valu e and creating awareness about uses of Bamboo. ECONOMIC ENVIRONMENT I Disposable Income of the universe of discourse With the sustained growth in the GDP of approximately 5-6% in the last few years there has been a high rate of growth in the disposable income of the Indian households. The NCAER entropy reveals that the affectionateness (annual household income between Rs. 62,000 and 86,000) and the high (annual household income higher than Rs. 6,000) income segments have growth at a compounded average growth rate of 13% and 17% respectively between 1989-90 and 1993-94. This increases demand for the luxury products. II Availability of Easy lodging Finance Housing finance has picked up substantially in India as the rate of interest for housing loan has been reduced substantial. It has gone down to as low as 10%. Moreover there are other income tax advantages too for the investment made in housing. Hence the construction industry is bamboo. This will in turn boost demand for various products that obviously includes flooring material.As is evident from above Tables, India has about 157. 2 million households of which about 52 percent fall in the low income (upto Rs. 20. 000) category a further 20 percent mane get power of about Rs. 9,000 p. a. constitute another 12% of total. Conclusions drawn from the NCAER entropy is of great significance from the point of view of the purchasing power of the consumer. When compared with the data from the previous estimates it appears that the upper middle and high-income segment of the population has been growing faster. Since a major chunk of demand for this sector is expected to get bigger in the near future.Within the upper middle and high-income segment, the rural households are growing at a far more impressive rate than their urban counterparts. Roughly about 137 million people belong to upper middle and high-income categories i. e. income of Rs. 34,500 p. a. This is a fairly large size indicating that the marketing of niche products can be the promising area. II briostyle Changes With more and more workingwomen in the Indian families, there participation in decision making at home is increasing. Women are always expected to be connoisseur of rich test & beauty.Bamboo flooring being user friendly, easy to clean & maintain shall get attention of women and help shift from other flooring materials. The Indian families are on the lookout for alternate ways to do household chores. Also declining supply of household workers has led to demand for products, which required less maintenance. Bamboo flooring does not required mopping, cleaning etc. It can be easily cleaned with Vacuum Cleaner. This will have an impact on the mental makeup of women in particular & in the urbanized in general. III Health Consciousness Pollution is one of the main reasons for Asthma and Allergy.People with these diseases have started avoiding woolen / synthetic carpets because these diseases these carpets become the storehouse of dust mites, which aggravates their problem. Part of the market for carpet will definitely shift towards Bamboo flooring. TECHNOLOGICAL I Life Cycle Every product has lifecycle. With technological department everyday new products are introduced in the market, but customers prefer the product, which meets their requirement. Bamboo flooring, which looks better & makes one feel better will create its own niche market.Being a natural product, it is unlikely to loose its charm for long time to come. II new-fashioned Development Manufacturing of Bamboo flooring is comparatively a new technology. There is likely to be continuous research on the subject and regular improvement in all aspects of manufacturing. The areas, which require attention, are a) Saving on wastage b) gain ground mechanization c) Better & economical coating material d) Alternative uses. This will result in better flooring at a sensible price. So it will further gear up to meet any challenge from any new products.