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THE FEASIBILITY OF THE ARECA PALM PLATE BUSINESS
Amrita School of Engineering
In accordance with
The Technical University of Delft
Tiffany Clein& Anita Tang
Supervisor: Asst. Professor R. Pramod
Date: 2016, December 10
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TABLE OF CONTENTS INTRODUCTION .................................................................................................................................... 4
2. THE MARKET ...................................................................................................................................... 6
2.2 Target market ................................................................................................................................ 6
2.3 Market trends ................................................................................................................................ 6
3.PRODUCTION TARGET ...................................................................................................................... 7
4. HUMAN RESOURCES ........................................................................................................................ 7
4.1 Selection of personnel ............................................................................................................... 7
4.2 Function description ................................................................................................................... 7
4.3 Development of personnel ........................................................................................................ 8
4.4 Labor conditions ......................................................................................................................... 9
4.5 Wage system ............................................................................................................................... 9
5.QUALITY CONTROL STANDARD .................................................................................................... 10
6. MANUFACTURING PROCESS ........................................................................................................ 11
7. COST STRUCTURE ........................................................................................................................... 12
7.1 Land and building ..................................................................................................................... 12
7.2 Machinery and equipment ...................................................................................................... 12
7.3 Raw materials ............................................................................................................................ 12
7.4 Staff and labour ........................................................................................................................ 13
7.5 Other expenses ......................................................................................................................... 13
7.6 Working capital ......................................................................................................................... 14
7.7 Total capital investment ........................................................................................................... 14
7.8 Cost of production (per annum) ............................................................................................. 14
7.9 Sales proceeds (per annum) .................................................................................................... 15
7.10 Profitability (before income tax) ........................................................................................... 15
7.11 Manufactures / suppliers of machine .................................................................................. 15
7.12 Suppliers of raw materials ..................................................................................................... 16
7.13 Implementation period .......................................................................................................... 16
8. SOCIAL ECONOMIC ASPECTS ....................................................................................................... 17
8.1 Challenges ................................................................................................................................. 17
8.2 Partnerships ............................................................................................................................... 18
8.3 Development and beneficiaries .............................................................................................. 18
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8.4 Impacts: economic, environmental and policy ..................................................................... 19
9. FEASABILITY OF THE PROJECT ...................................................................................................... 20
9.1 Technical feasibility ...................................................................................................................... 20
9.3 Implementation ........................................................................................................................... 21
9.4 Motivation and willingness .......................................................................................................... 21
9.5 Needs ........................................................................................................................................... 21
9.6 Requirements .............................................................................................................................. 22
9.7 Risk management ........................................................................................................................ 22
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INTRODUCTION
This report looks into the feasibility and plans for realizing a business venture in the state
Karnataka in the village Byse, near Bangalore. The project is organized by the private
University of Amrita as part of their program named Live-in-labs.
The university is situated on 5 places in India andranked 181 in the Times Higher Education
BRICS and Emerging Economies Rankings. Which mean that it ranked as the number 1 of the
private schools in India and 15th amongst other universities in India.
Amrita University helps many villages alongside Amma’s SeRVe organization by providing
sanitation and electricity, but after investing to achieve the basics it becomes important that
the villages become self-reliant. The university collaborates with different international
universities to achieve improvements in villages
The Technical University of Delft will be participating in creating a successful business venture
in the village Byse together with Amrita University. The team will consist of two students from
the Technical University of Delft; T. Clein, A. Tang, and four students from Amrita University
School of Engineering; R. Nikhil, N. Raahul, N. Satheesh and M. Shivpriyan, supervised by Asst.
Professor R. Pramod.
There are two focus points. First is on creating a successful business venture in the village of
Byse, were plates are made from the areca palm leaf sheath. Secondly there will be looked at
improving equipment and machines needed and making a production process as efficient as
possible.
The leaf sheath, which is an attachment to the areca palm leaf is needed for production of the
plates. They fall 5 à 6 times a year and need to follow several processing steps, such as
cleaning, drying and preparing before they are pressed into a plate by a heat press and then
finished. This organic and sustainable made tableware can replace plastic ones and
contribute to a sustainable way of life. On the other hand this project will support local
entrepreneurship and create the financial support for the villagers.
The business plan gives insight on what is needed to eventually produce a plate from the
areca palm leaves. The venture is in its beginning stadium, meaning efficient equipment and
business structure needs to be developed. First of all it's important to define the different
customer segments and the value proposition of the dinnerware. The channels and customer
relations are important to know how to approach the customer segments. The resources
needed to perform the key activities have to be researched. Just as all the key resources and
activities that need to be done by the villagers with help from the key partners. The cost and
income structure is important to give insight into the profitability of the business model.
Because of the sustainable aspect in this project it's also important to give you an insight into
the revenues and costs in respect of the planet and people in India. Lastly a feasibility
evaluation will be presented. The businessplan and feasibility evaluation was written after a
questionnaire was conducted of the villagers of Byse. The answers to this questionnaire are
incorporated in both the businessplan and feasibility report.
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1. THE PRODUCT
The product that will be made is a plate, a disposable plate made from the areca palm sheath
that can be used for food. The use of this plate will reduce plastic waste, made by the use of
plastic disposable plates. In the starting phase round plates of a 12 inch will be produced.
When the business develops and grows investments in multiple dies of different sizes and
shapes will be possible. This is important to meet with the costumers wishes.
Figure 1: Example of a Areca Palm plates
Figure 2: Areca sheath, left a good one, right one with
fungus.
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2. THE MARKET
The products will be sold at nearby markets, with the help of an intermediate. This
intermediate will collect the plates from the business and then sell those to the clients. The
help of an intermediate is chosen because the villagers are not willing to take part in
marketing activities; an intermediate can do this for them.
2.2 TARGET MARKET
The cups and plates are in large demand by vendors, fast food restaurant, star-hotels, mass
feeding, for prasadam in religious institutions and local market in the area of Byse. The
villagers do not decide the target market since an intermediate is in between.
Mata Amritanandamayi Math,an international charitable organization located in Kerala, can
also act as a buyer of the plates to use them for their seva (service) activities. However they
will be able to buy them at a price lesser than the market price as no intermediate will be
used in the contact with the villagers.This organization can be a reliant and fixed buyer
ensuring the villagers a solid contract.
In the future the export market might be an option. When the products are of high enough
quality and the capacity is maintainable an intermediate can come and sell them abroad. This
will increase the earnings of the plate.
2.3 MARKET TRENDS
Since sustainability and waste management is becoming a bigger trend, the market for these
sustainable tableware will grow. As the tableware is made from leaves it is a sustainable way
of production. It will also reduce plastic waste, which makes it a social gain for the society,
because it will improve a clean living environment. Unlike plastic the tableware can also be
recycled into fertilizer. This means that this tableware is also a good investment. Lastly It will
increase the status of people, because they will buy a product that is good for the
environment and that will be lifting for poor rural communities.. The product will also look
more elegant and will be more robust than plastic tableware.
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3.PRODUCTION TARGET
The plates will only be made in the spare time of the villagers and this differs with harvesting
season or other activities, because of this it is hard to estimate the production target. The
villagers can now make 4000-7000 plates a month with one machine.
Leaf cups and plates
Quantity 4000-7000
Value (Rs) 8000-14000
4. HUMAN RESOURCES With explaining the utilization of human resources in the village Byse, the different aspects of
employment and personnel organization that needs to be overseen will be assessed and
described.
4.1 SELECTION OF PERSONNEL
The recruitment of personnel will be done in the village of Byse, where there are 208
households. The kind of people that will be working with the business will be men and
women from different households. Their main occupation will be in agriculture. Some of
them will have an areca plate pressing machine and/ or a biogas digester. This meansthat
there are people who have experience in working with the machines.
The villagers, with whom a questionnaire was taken with, mentioned that at least ten other
villagers with experience were interested in working with the business. The questioned
villagers showed positive reactions. There is interest and willingness to expand their current
occupation with other activities that will provide an additional income.
4.2 FUNCTION DESCRIPTION
Manager/bookkeeper
Personnel administration needs to be registrated and keeped-up to date. With this their
different functions and skills can also be stated. This way it’s easier to follow the development
of the personnel.
Then the financial part of the business, such as the profits and costs need to be assessed
continuously during the running of the business. Good bookkeeping is needed and wages
need to be distributed constantly also.
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None of the villagers is interested in managing the business, this is because they want shared
responsibilities and they only want to spend their spare time on the project. Taking all the
responsibility of managing the business is to much for them.
The production process consists of different parts and can be divided into different work
functions.Below the different functions for the production processes are described.
Buying of the areca palm sheaths
The sheaths will be provided by the abundant areca nut farms in the village. These sheaths
are harvested by them and then sold to the business at 1 Rs – 1.5 Rs.
The washing of the sheaths
The sheaths will have dust and dirt on them. This means they have to be washed thoroughly
with a brush. This will take 15 min till 20 min per sheath.
The drying of the sheaths
The sheaths need to be dried for 7 days till 15 days in the sun. For this process supervision is
needed to place the sheaths in the open sun and to check when they are dry enough.
The pressing of the plates
The handling of the machine will be done by one person. Who will put a sheath between the
dies and then turn the lever. The heated dies will then lock together and press the sheath in a
plate shape. The built in cutter will cut the plate. If the sheath is big enough and depending
on the die shape another plate can be pressed from the same sheath.
Drying of the plates
Afterwards the plates need to be dried in the sun for one day, because high moisture content
will lead to the degradation of the plate, making it unfit for use.
Packaging of the plates
The dried plates then need to be packaged in plastic to maintain the quality and that it stays
clean during transportation.
4.3 DEVELOPMENT OF PERSONNEL
The personnel will already have experience in working with the production process of the
areca plate making. The unskilled workers will be taught hands-on, as this is preferred with
them. The different principles of the production are easy to learn, this will make the workers
able to be skilled in every aspect of the production process. Since a few of the people are
already skilled in the process these people can learn it to the other workers. This will be easier
than a training course since these skilled people can also keep a eye on them afterwards.
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Safety on the work floor is an important subject. A chart will be made, which will describe the
safety procedures around the machines. These will also be emphasized as the machines are
open and the use of biogas has to be handled carefully also. This chart will exist of warnings
and graphics. Before placing the machine and introducing the machine it may be helpful to
go on the safety requirements with all the workers
These workers when united in the business will be stronger and be able to produce more and
reduce risks in investment. Working in a group will bring new skills, such as social ability,
communication and more social support. Working in a group venture will also give room to
self-development, as they can learn from each other socially and skill wise.
4.4 LABOR CONDITIONS
The personnel will gain contract, which will ensure fair wages. These contracts will also
describe their rights and conditions for working with the business.
Clear agreements need to be made about the working hours, as the villagers see this venture
as a part-time job. This means that this will be a seasonal venture as harvest time of their
agricultural products will take up all their time and energy. They need to make clear rules
with the group of workers to ensure participation and responsibility of all, to set up those
rules the use of an intermediate may be helpful.
4.5 WAGE SYSTEM
Since the wage is dependent on the amount of plates they sell, the wage will differ with
seasons. When it is harvesting season the workers have less time to make the plates and thus
earn less. When they put extra time into the business they will get more earnings form it.
The profit that is made by selling the plates will be the earnings, this will then be divided by
the people who have worked to create those earnings. As it is an extra income and
dependent on the time put into it, the wages aren’t stable.
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5.QUALITY CONTROL STANDARD
Several tests need to be executed to check the quality of the plates. To ensure the products
are sanitary for immediate use, coliform and yeast/mold testing is done. For checking if the
material is safe for contact with food, phytosanitation will occur (with fumigation). Then the
level of heavy metals will be tested for both human and environmental concern.
The following tests can be done by the importer, intermediate or buyer to ensure that the
products are completely hygienic and safe.
Health and Safety testing;
Anaerobic Plate count - APC35C
Test: Coliform and Yeast/Mold testing
Explanation: The products are sanitary for immediate use out of the package.
PhytoSanitation
Test: Before shipping, the container is fumigated and tested for safety. To be exported the
test must be passed.
Explanation: Plant material is safe for contact with food.
ASTM D-6400
Explanation: Testing for heavy metals is for both human and environmental concern. The
tests will show that it is well below the acceptable level.
Compostability testing
ASTM D-6866
Test: Biological material testing
Explanation: The products are completely natural. There are no additives, plastics, waxes or
glues in the products.
ASTM D-6868 and ASTM D-6400
Test: Speed and ability to be composted
Explanation: The standard for this test is 60% in 90 days. Areca leaf products will be
composted 150% above the standard in 2/3 the time.
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6. MANUFACTURING PROCESS
The pressing machines for the leaves and cups can be operated by hand or foot. In the case
of disabled workers they can use their hands. The machines consist of low-cost and durable
materials, which are locally available. This will make the machine more easily to maintain and
to be built locally. The energy source for the machine will be LPG or biogas. The materials
that will be pressed by the machines are areca leaves sheaths. These are washed, dried and
then stored. Then they are placed on the lower die, as the pedal is pressed down for a few
seconds, the upper and lower die will be pushed together. The heat and pressure from the
plate or cup shaped dies will give the leaf form and make it robust. The sharp edges attached
to the die will cut the remainders from the leaf. After pressing the plates and cups will be
dried as they will contain high moisture content.
Figure 3: The machine they use now. The wheel behind is put on top to press
the dies together.
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7. COST STRUCTURE The different costs that need to be considered are stated here for all the different aspects of
the business venture. The assessment of the costs and investments that are needed are
important, as to see what is needed to start the business and to keep it running continuously.
7.1 LAND AND BUILDING
Description Amount (m2) Cost (Rs)
1. Covered area
?
2. Uncovered area
?
3. Total area
Rented?
4. Storage facility
Rented?
Total
7.2 MACHINERY AND EQUIPMENT
Description Quantity Value (Rs)
1. Pressing machine 1 20000
2. Dies for cups and plates 111 40 - 250
3. Handtools 1 30-40
4. Biogas digester 1 120 000
5. Sales Tax, Freight & Insurance etc. ... ?
Total
7.3 RAW MATERIALS
Description
Value (Rs)
1. Areca palm sheaths 1 sheath 1-1.5
2. Packaging material .... ?
Total
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7.4 STAFF AND LABOUR
Description Quantity Rate (per day) Value(Rs) Monthly
A Administration and supervision
(i) Manager/bookkeeper
?
(ii) Peon/ Chowkidar
?
B Technical (Skilled/Unskilled)
(i) Skilled worker 2 200/350
Men 1 300/350
Women 1 200/250
(ii) Unskilled worker? 10 150-200
Sub-Total
Plus perquisites @ 30% of salaries
Total
7.5 OTHER EXPENSES
Description Value (Rs)
1. Electricity costs N.N.A
2. Fuel expense ?
3. Advertisement and Travelling N.A.
4. Transport N.A.
5. Market stand N.A.
6. Food expenses/ Telephones 50 / N.A.
7. Stationary ?
8. Repairs and Maintenance ?
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9. Rented area ?
Total
7.6 WORKING CAPITAL
Description Amount (Rs)
1. Raw material 2000-5250
2. Salaries and Wages
3. Other expenses
Total
7.7 TOTAL CAPITAL INVESTMENT
Building and land
Machinery and equipment
Working capital for one month
Total
7.8 COST OF PRODUCTION (PER ANNUM)
Total recurring cost per year
Depreciation on Machinery and equipment
Interest on total investment @ 10%
Total
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7.9 SALES PROCEEDS (PER ANNUM)
Product Amount Value (Rs)
Leaf cups and plates 1 2-2.5
...... ?
Total
7.10 PROFITABILITY (BEFORE INCOME TAX)
Description Value Unit
1. Annual Gross profit
Rs.
2. % of profit on sales
%
3. Break Even Analysis
3.1 Annual Fixed Cost
Rs.
3.2 Annual Sales
Rs.
3.3 Annual Variable Cost
Rs.
3.4 Break Even Point
%
Break-Even Analysis
(% of Total Production envisaged )
𝐴𝑛𝑛𝑢𝑎𝑙 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡 100 𝐴𝑛𝑛𝑢𝑎𝑙 𝑆𝑎𝑙𝑒𝑠 − 𝐴𝑛𝑛𝑢𝑎𝑙 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡𝑠 = %
7.11 MANUFACTURES / SUPPLIERS OF MACHINE
1.
2.
3.
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7.12 SUPPLIERS OF RAW MATERIALS
1.
2.
3.
7.13 IMPLEMENTATION PERIOD
Assumption for generating project profitability.
1. Number of Working Days in a year 365
2. Number of shifts in a day
3. Hours in a shift
4. Plant capacity
5. Raw material Estimates
6. Raw material Availability Abundant
7. Depreciation
8. Manpower 10
9. Rent estimate
10. Potential Area of marketing N.A.
11. If project is funded, term loan would be. 1 lakh p.p.
12. Moratorium Period
13. Repayment Period Weekly 600 Rs
14. Project may be established under
Sidenote: An estimation for the cost structure is made based on certain views and beliefs. As
the villagers could not recite the solid numbers and we are not able to get these numbers
from elsewhere is hard to complete the cost structure.
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8. SOCIAL ECONOMIC ASPECTS
Byse is a small rural village in Hosanagara Tehsil of the Shimoga district of Karnataka, which
lay approximately 342 kilometers from Bangalore. The village has an area of 1266.61 hectares
were approximately 961 people live, which make 208 households. The villagers speak
Kannada, the language of Karnataka.
The villagers of Byse are fully dependent on agriculture. So, most of the villagers have
involved themselves in agriculture and related industries. The land of Byse was majorly
covered by forest but parts are converted into revenue land. The major crops cultivated are
paddy and the arecanut. However the process is not yet efficient and the fields are not used
for 3-6 months.
A few government provided schools are found in Byse, these schools provide the students
with a midday meal. The students found in Byse are curious and bright and are talented in
different sectors as science and creative arts. The literacy rate in Byse lies higher than the
average of 75,36% in Karnataka, with 79,42%.
Electricity is widely used in the village. About 90% of the houses of Byse have access to
electricity, but only for 4 to 5 hours a day. Furthermore nearly 50% of the people have their
own transportation facilities.
To stimulate and increase the livelihood of the people in Byse, the village needs support from
organizations. Now they have practiced agriculture successfully for years and want to pursue
other opportunities. Some households have already purchased an Areca plate pressing
machine in the past, with the use of loans. This enables them to get an additional income.
The villagers, who will make plates next to their agricultural work seemed pleased and willing
to invest further in this business opportunity. However the purchased machines are outdated
and the production process used now, can be improved in efficiency.
Most of the people in the village have the skills and training to do more, but they lack the
resources. When giving the right training or financial support they will be able to open up to
a new source from which they can earn money.
8.1 CHALLENGES
The villagers of Byse have as main income, work in agriculture. This has always been a reliable
form of income to them. This means that they are willing and motivated in getting additional
income on part-time bases as their main time investment and energy will stay with
agriculture.
Multiple projects and surveys have been done in this village, but physical results were lacking.
This created skepticism amongst the villagers. This didn’t demotivate the villagers in
expressing their job wishes and to talk about their current work environment. They expressed
their motivations and intentions to expand their incomes and to increase the working
efficiency with the production of the areca plates.
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The villagers made clear that they wanted the areca business to be a group venture. No
individual is willing to take the responsibility and the risks in terms of investments of energy
and money. Just like the loans that need to be taken for the purchase of raw materials and
equipment have to be done for the business.
The part of the business venture that the villagers are willing to participate with is the
production part. They only want to produce plates and get a fixed price for it, independent of
market fluctuations. Currently a few are working this way, by selling the plates to a buyer for
a certain price. The villagers are unaware of what happens with the product after it has been
handed to the buyer. This means that they are also not interested in the other parts, such as
logistics, market, distribution and etc.
8.2 PARTNERSHIPS
The different existing partnerships are to ensure a proper business venture. First a start
capital needs to be ensured. This is done in the form of a group loan for the business. The
villagers now have individual loans to sustain them in different aspects. They are accustomed
to this system and have faith in this. This made them willing to get a group loan and make
investments in the future.
When looking at the equipment and machines, they need to be made and receive
maintenance over time. The first machines will be made as a prototype for the village by
Amrita University. With this also the knowledge will be shared of production and usage. The
goal is that the villagers will be able to make and maintain the machines by themselves.
To meet the wishes of the villagers of a fixed plate price when selling to the intermediate
buyer, contracts and reliable buyers need to be sustained.
8.3 DEVELOPMENT AND BENEFICIARIES
There are a few households, who are currently producing areca plates. The development will
be in improving the machines, production process and create additional income for more
villagers. More villagers will gain in income by participating in this business venture. Indirectly
the whole village will benefit as the business will grow.
This village is one of the 101 villages that Amrita University adopted for creating chances and
opportunities. Improvements have been in infrastructure, electricity availability, hygiene and
more. To make this village more self-reliant and successful will benefit Amrita University in
different ways, such as charity, status and as a learning process for application in other
villages.
Another University supporting this project is the Technical University of Delft. This kind of
program, where technical, design and business aspects are included, are a great learning
experience for all involved. There is an exchange of knowledge between all parties, such as
the villagers, students, supervisors and etc.
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8.4 IMPACTS: ECONOMIC, ENVIRONMENTAL AND POLICY
According to Porter (2011) Businesses can reduce the infliction of social, economic and
environmental problems by adapting the principle of shared value. This means creating value
for society and economically. This is the essence of the project, because the project will help
the villagers socially and economically. There is creation of employment and
entrepreneurship. This means there will be an increase of knowledge and income for the
villagers and at the same time a business is set-up.
The environmental impact of this business venture depends on the energy sources used and
the products produced. The energy source used will be initially LPG and later on it will be
replaced by biogas. Electricity is not possible as it’s not possible to ensure a continuous
production. The option for the usage of biogas has been inquired during interviews taken
from the villagers. The reactions received were positive as many were already familiar with
the use of it and had a biogas digester on their property. The biogas will be sustainable and a
green way of fuel production as agricultural waste and cattle manure will be its raw material.
The set-up of a new biogas digester will take two till three months, this is why LPG will be
used initially.
The product itself is made of the areca palm leaves sheath. These sheaths fall from the trees
naturally and are then to picked up for usage. These sheaths have to be picked up as they are
prone to mold and fungus, which will affect the areca palm tree. This means that the harvest
of these sheaths won’t harm the environment in any way. The sheath waste can be used as
food stock for cattle or for the biogas installation. After production the eco-friendly plates
can be easily recycled with other organic materials into fertilizer.
The economic impact will be evident over the course of time. As this business venture is now
practiced on a small scale as a free time activity for the villagers. However when proper
machines and improved production process will be implemented more villagers can join and
upscale this business. The impact economically will grow making investment and more sales
possible. This will lead to more areca plate production jobs and of course jobs indirectly
related to it.
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9. FEASABILITY OF THE PROJECT
A questionnaire was proposed amongst the villagers of Byse. The answers came from; the
areca nut farmers, the coordinator of Amrita SeRVe and one household that was already
producing the areca palm plates. These answers will be used to look at the feasibility of the
project.
9.1 TECHNICAL FEASIBILITY
A pressing machine is designed and built by mechanical engineering students from Amrita
University. The first machine will be delivered to the village and the following machines can
be built by the villagers themselves with help from Amrita University. The machine will be
kept simple and made from locally available material so that maintenance can be done by the
villagers themselves. Only the dies in the machine can’t be reproduced locally.
The current machines used by the villager’s uses a manual cutting device. This takes more
time and is less efficient. The new machines will have a built in cutting edge, which will cut
the plates in the right shape automatically. Afterwards only small cuts need to made to get
the design perfect.
LPG is currently used as fuel for the pressing machine. The use of LPG as fuel is easy and
available, as the villagers are able to get subsidy on the fuel costs, because of a government
scheme. However a more preferable option for fuel is biogas. A disadvantage to biogas is
that the installation will take time to set-up, as a biogas installation cost investment and two
to three months before it will start generating gas. Some of the households already
possessed a biogas digester from years back and they were very positive of its use. Currently
they harvest the biogas as energy source for doing household chores. They are not using the
biogas for the pressing machine, because the use of biogas for the areca press now was not
efficient as the current areca press machines uses very high temperatures and therefore a lot
of biogas. However the new machines proposed by Amrita University will be able to work
better with biogas, because they are more efficient in the use of energy as they will heat up
to lower temperature and achieve the same results.
The goal is to use biogas eventually as the main source of energy as it is lasting, free (after
initial investment) and environmentally friendly. The raw material needed for the biogas
installation is abundant available in the villages as almost every household have cattle and
work in agriculture. Therefore setting up a biogas plant in the village will have positive
advantages for the villagers.
The option to use solar energy was also looked into, but after an inquiry with the villagers it
seemed not preferable for them. First of all it was unknown to them in the sense of never
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have they experienced working with it. Other concerns are with the high initial costs and the
weather. Byse experiences a monsoon time and has about four till six months of rain. During
the rain the radiation of the sun and the humidity detain the solar dryer from working. As the
solar dryer can only be used in the dry months when it is not needed as much the solar dryer
is not profitable.
9.2 FINANCIAL FEASIBILITY
The complete financial structure can be seen in the chapter costs structure. The group can
take a group loan, for four persons at Karnataka State. This provides about 1 lakh per person,
which is enough to get the business of the ground. The villagers have used this system
before, so they trust it and know the requirements and risks. They are willing to take a loan,
but only as a group. This loan will be enough to provide the villagers with the initial capital
needed to start the business.
9.3 IMPLEMENTATION
For the implementation of the project certain things are required and since the villagers are
skeptical about the implementation of the project this needs to be done right. After physical
confirmation in the sense of machinery and equipment, the villagers will be more convinced
of the succession of this project. The villagers are willing and agitated to start on the project
but from previous projects by Amrita they became quite skeptical with the implementation of
the project. The villagers were promised something which did not get delivered. So extra
notice needs to be done while implementing the project, this can be done by giving the
villagers updates on how far the project is. .
9.4 MOTIVATION AND WILLINGNESS The motivation and willingness is the main thing needed to get the project off the ground.
The villagers are willing to earn some extra money next to their main source of income,
agriculture. None of them is willing to completely rely themselves on the areca palm plate
business. They do not want to do marketing, branding or distribution and logistics for the
business. But they were all enthusiastic about the business and they all saw potential in the
project. The money they earn from the business will be invested in searching for new crops
that can grow in the rain.
9.5 NEEDS To get the project started a few things are of importance;
Willingness of the villagers - The villagers need to be willing to do the project since its
dependent on them and for them.
Skills - The villagers needs skills to be able to make the products, these skills will be
provided to them by means of a training course provided by the project team of
Amrita University.
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Machine - The machine for making the products will be provided by the project team
of Amrita University, although the villagers need to pay for the machine with help of a
loan.
Loan - To get started and be able to pay for the machine, workspace and a certain
amount of sheaths and gas a loan will be required. This loan will help the villagers get
started, whereas later on they can start making profits by selling the product.
Workspace - Since no one in the group want to have all the responsibility they also do
not want the workspace on their property. So there needs to be looked a communal
space where they can work.
Areca sheaths - Areca palms grow abundant in Byse, these sheath need to be bought
or acquired.
9.6 REQUIREMENTS Since the villagers do not want any participation in the marketing and sales aspects and
nobody wants to take individual responsibility for the business, clear rules should be set in
the group so they know what is expected from them. The villagers learn the best when they
are thought in a way of seeing, for instance by example and then trying. A manual with
pictures and explanation will not work for them. Since the process is not that hard to learn.
Villagers already skilled in the production of the plates have also learned it hands-on
successfully.
9.7 RISK MANAGEMENT
The machinery will consist of dies that won’t be able to be reproduced by the villagers. The
framework of the machine they will be able to reproduce. However due to the close
relationship with Amrita University agreements can be made about the maintenance and
replacements of broken or depleted dies. Furthermore as this machine will have a built in
cutter, which will make the production process quicker and be more efficient in fuel use, the
villagers will happily use those machines and learn how to work with them.
By supplying the villagers with efficient machinery, they will be able to produce more and
make more profits. This enables them to pay of their loans and invest back into the business.
Therefore this will attract more villagers in participating and develop the business.
This is a part-time activity for the villagers; this shouldn’t be a problem as the amount of
plates from one household can reach 4000 till 7000 plates in a month resulting in a proper
additional income.
The motivations and intentions of the villagers are positive, this means that when given the
right instruments and materials the villagers will take it with both hands. The villagers only
agree with developing this business venture if it will be a group effort. They don’t want to
take individual responsibility and risks, which is reasonable as machines and equipment will
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need substantial investments. Also by taking a group loans start capital will be high and risks
will be smaller.
There are several risks that a common workplace will bring, such as using flammable and
toxic gas (when inhaled) and open pressing machine which needs to be handled with caution
for the hands. As the villagers have years of experience with the use of a biogas digester and
how to harvest it risks are low. One safety precaution which will be built in the machine is that
the dies will lock first, before pressing.
Also concerns were given about children at the work place, but the villagers ensured that no
children were never around those machines during working hours. They regard the children
as a distraction and are well aware of the dangers of the machines for children. Of course a
refreshing course can be given about the handling procedures and dangers. Despite of their
solid experience in working with a pressing machine and biogas installation it is still
recommendable to make sheets with the safety requirements.