Business Profile:

Coir fiber is one kind of fruits fiber which is derived from coir. Coconut trees
mainly distributes in Hainan Province, Guangdong Province of China, Sri Lanka,
India and other tropical, subtropical regions and countries. The annual world
production of coconut is almost 50 billion, but the traditional application of the
coir consumed only a small portion of the whole production. Also because of the
natural degradation period of coir is up to two decades, a large number of
discarded coir causes serious pollution. The development and application of natural
coir fiber composites can make up for the conservation. The rational use of coir
fiber is a serious problem to be solved.

Coconut fiberboard is a new product that is manufactured from the waste material
of coconut. That material constitutes the fibrous material like coconut coir, spates,
and shredded wood. These items with some specific ratio are mixed with Portland
cement at the predetermined ratio of 40% and 60% cement and the mixture of rest
of the items.

Vision and Value:

An eco-friendly product from the concept of re-engineering to make the useful
products to save cost and helpful in our economy.

Problems:
Moving towards modernization, we have increased the consumption of wood in
our infrastructure. For this purpose we are cutting trees and it causes the
“destruction of nature” and ultimately Earth is suffering from “Global Warming”.

Solution:
So for coping up such a problem we are making a product “coconut fiberboard”
which we can use as an alternative of wood. It has some extra-innovative features
than wood that will be discussed in SWOT Analysis.

Effect on Economy:

 CFB is expected to contribute to the government low cost housing scheme.

 It is the cheapest way to replace woods and fulfill the demand of wood.
 As the prices of wood is increasing day by day and demand is also increasing so
it contributes in inflation and as we know inflation is not good for economy.
Our product will help to stabilize the economy.

Production of coconut in Pakistan

As per last year’s record the production of coconut on Pakistan is about 10
thousand tons. And from which almost seven thousand is wasted and dump which
causes environmental pollution and become a cause of many dangerous diseases

.
PROCESS
Raw materials:

Cement = Portland cement

Coir = 25%

Spathe = 50%

Shredded wood = 25%

Equipment:
The major equipment/machinery used in the manufacture of CFB are all fabricated
locally except the lifter and include the following:

 Decorticating machine
 Hydraulic press
 Blending machine
 Trimming machine
 Lifter

Method:
 Drenching of dried spathe in tap water for 24 hours.
 Decorticating of spathe to produce fibers.
 Cutting and shredding of wood.
 Soaking of fiber in a separate dipping pot for 2 days to remove extractives.
 Draining of the fibers.
 Mixing the required amount of fiber, cement and water in the blending
machine.
 Mat-forming using wooden form box.
 Pressing the mat to the desired thickness for 1 day using press machine.
 Dry it at the end.

USES
Production of CFB is expected to contribute to the :
 Government’s low cost housing program.
 Can replace traditional construction materials such as tiles, bricks, plywood and
cement hollow blocks.
 It can be used for internal and exterior walls, partitions and ceiling or as a
component in the fabrication of furniture (tables, chairs, desks, etc.), cabinets,
boxes and vases.

TARGET MARKET
 Every person who is willing to buy the product is the target market of our
product.
 Specifically furniture manufacturing companies.
 Families who are focused to beautify their homes with furniture made up of
wood.
Marketing mix

Product:

 Interior walls.
 Fabricating of furniture.
 Bricks
 Partitioning.
 Ceiling
 Cabinets & boxes.

Price:

 Market oriented pricing strategy.

 Hybrid everyday value pricing strategy.

Place:
Uses a global network for distributing the product to consumers. Distributors and
sellers are considered in this element of the marketing mix. Places for distribution
are as follows;

 Retailers.
 Online merchandisers.

Promotion:
 Advertising and publicity.
 Sales promotion (short term tactics to boost up the sales).
 Direct marketing.
 Interactive marketing.
 Public relations.

SWOT ANALYSIS
Strengths:

 Cheap, durable and require low maintenance cost.

 Production technology is simple.
 Do not need highly skilled labor.
 Good insulating material, has fire resistance characteristics and is a water
resistance.
 It is also nail able, plaster able and sawable.
 Resistant against attack of fungi and wood boring insects.

Weakness:

 Political instability.
 Production/ forming of coconut.
 Technological differences.
 Insufficient mill processing capacity.
 Insufficient infrastructure or transport.
 Lack of finance availability for small holders.
 Lack of incentive to replant for future supply.

Opportunities:

 Target higher value, buyer with more valuable and convenient product.
 Add value across entire product line to motivate replanting.

Threats:

 Aging trees and declining supply.

 Poor tree management promoting pests and disease.
 Changes in government policy.
 Rising quality standards of the markets and competing countries.

Financial Plan
Financial planning

It is the task of determining how a business will afford to achieve its strategic goals
and objectives. Usually a company creates a financial plan immediately after the
vision and objective have been set. The financial plan describes each of the
activities, resources, equipment and materials that are needed to achieve these
objectives, as well as the timeframes involved.

Balance sheet

Assets Amount Liabilities Amount

Fixed assets Long term
Plant and machinery 1000000 N/P 1500000
Equipment 50000 A/P 200000
Building 1000000 Salaries P/A 100000
Land 450000 Wages P/A 100000
Total 2500000 Interest P/A 200000

Current assets Non equity reserve 0

Cash in hand 200000 Earnings 900000
Cash in bank 200000 Total capital 900000
A/R 100000 Total liability 3000000
and capital
Noncurrent assets 0
Total assets 3000000
Assets = liabilities + owner equity / capital

3000000 = 2100000 + 900000

3000000 = 3000000

Income statement
Amount
Investment 600000
CGS 350000
Gross profit on sales 250000
Operating expenses
Administrative expenses 20000
Operating 330000
Other income
Add
Dividend 10000
EBIT 340000
Less
Other expenses
Interest expense 20000
EBT 320000
Less
Tax 100000
Net income 220000