ARECA LEAF PLATE-A BUSINESS MODEL

SRP submitted in partial fulfillment of the requirements for the Award

of the Degree of
MASTER OF BUSINESS ADMINISTRATION
OF

ACHARYA BANGALORE B SCHOOL

By

KAVYA D N

19YUCMD081

Under the guidance of

Dr.V.P. SRIRAM
ASSOCIATE PROFESSOR
ACHARYA BANGALORE B SCHOOL

2020

I
 DECLARATION BY THE STUDENT

I hereby declare that “Areca Leaf Plate -A Business Model” is the result of the
project work carried out by me under the guidance of Dr.V.P. Sriram in partial
fulfilment for the award of Master’s Degree in Business Administration by Acharya
Bangalore B School.

I also declare that this project is the outcome of my own efforts and that it has not
been submitted to any other University or Institute for the award of any other
Degree or Diploma or Certificate.

Place: Name: Kavya D N

Date: Register Number: 19YUCMD081

II
 CERTIFICATE OF ORIGINALITY
(To be given by the Institution on its letterhead)

Date:

This is to certify that the SRP titled “Areca Leaf Plate -A Business Model” is an
original work of Ms Kavya D N being submitted in partial fulfillment for the award
of Master’s Degree in Business Administration of Bangalore University. The report
has not been submitted earlier to this Institution for the fulfillment of the
requirement of a course of study.

SIGNATURE OF GUIDE SIGNATURE OF DIRECTOR

Date: Date:

III
 ACKNOWLEDGEMENT
I take this opportunity to convey my sincere thanks and gratitude to all those
who have directly or indirectly helped and contributed towards the completion of this
project. The success of any project study depends upon a number of factors among
which the proper guidance received from the experts in the industry and teachers play
an important role.
I take here a great opportunity to express my sincere and deep sense of gratitude
to Dr.V.P.Sriram for giving me an opportunity to work on this project. The support
and guidance from sir were of great help and it was extremely valuable. I would like to
express my gratitude to sir for his constant support and encouragement. I would like to
express my sincere gratitude and thanks to Dr. H.R.Venkatesha Director of MBA
department of Acharya Bangalore B School, for his constant support and
encouragement without his outright and energetic motivation, support and prompt
response. It would not have been possible to do any justice as well as bring authenticity
to the project.
Finally, I want to thank everyone for their constant support and encouragement.

IV
 CONTENTS

CHAPTER. NO. PARTICULARS PAGE.

NO.
1 Introduction 2
4
1.1 Manufacturing process
Literature Review 7
1.2
2 Social Relevance 11

2.1 Harmful Nature 11

2.2 Environmental Degradation 12

2.3
Low Melting Point 12
2.4
Durability 12

3 Entrepreneurial Opportunities 14
3.1 Vision & Mission Statement 15
3.2 15
Market Potential
3.3 16
Swot Analysis
3.4 17
Manufacturing Process
3.5 Plan, Implementation, Monitoring And Evaluation
Marketing (PIME) 19
23
3.6 Data Analysis and Interpretation

4 Review of Current National and

37
International Scenario
4.1 38
National Scenario
4.2 40
Global Scenario
5 Challenges 43

5.1 Challenges In Implementation 43

6 Conclusion 45

Bibliography
 LIST OF TABLE

Table. No. Description Page no.

3.1.1 Detailed breakup 21

3.1.2 Working Capital 22
3.1.3 Utilities and contingencies 22
 LIST OF FIGURES

Figure no. Description Page

no.
1.1 Manufacturing Process of Areca Leaf Plate 04
3.1 Manufacturing process of Areca leaf Plate 17
3.2 Plant and Machinery Used In Manufacturing Of Areca 20
Leaf Plate
3.3 Representation of No. Of Respondents Based on Gender 23

3.4 Representation of No. Of Respondents Based on 24

Profession
3.5 Representation of No. Of Respondents Based on 25
Respondents
3.6 Representation of No. Of Respondents Based on Family 26
Income
3.7 Representation of No. Of Respondents Based on 27
Awareness of Areca Leaf Plate
3.8 Representation of No. Of Respondents Based on Eco- 28
Friendly Plates
3.9 Representation of No. Of Respondents Based on They 29
Prefer Occasionally
Representation of No. Of Respondents Based on Interest 30
3.10 to Buy Areca Leaf Plates
3.11 Representation of No. Of Respondents Based on Types 31
of Plates Preferred
3.12 Representation of Buying of Areca Leaf Plate 32
Increase According to Sales
3.13 Representation of No. Of Respondents Based on Sales of 33
Eco-Friendly Plates
3.14 Representation of No. Of Respondents Based on Serving 34
of Cold and Hot Food
3.15 Representation of No. of Respondents based on use of 35
areca plates after COVID-19
3.16 Representation of respondents based on usage of water 36
can be reduced by using areca plates
 CHAPTER-1
INTRODUCTION

1
 1. INTRODUCTION
India is land of agriculture where it provides employment opportunities as
well as it is a supplier of raw materials to the manufacturing industry. Now
days, Government has banned the use of plastic and polymer products.
Therefore there is a greater demand for eco-friendly products. By seeing all
these aspect, we as a small scale manufacture focused on eco-friendly
products like "Areca palm leaf plate-as a business opportunity". This
Enterprise is a proposed micro enterprise for the manufacture of Palm plates.
It is a sole proprietary concern.. Now a day the importance of biodegradable
materials is very high since polyethylene wastes poses severe threat to the
universe. The disposable plates and food packing materials manufactured
from easily available areca nut palm leaves is a better substitute for
disposable polythene and paper plates. There is an ever increasing demand
for these items.
The business opportunity is considered as eco-friendly because, In India
almost 4 hectare of areca crop has been cultivated, nearly about 5400 million
areca leaves are shredded and treated as agro waste. One areca leaf plate
manufacturing unit needs 70,000 leaves per year. In this scenario near about
80,000 plates manufacturing units can be established all over India. 3 lac
fresh employments can be given in 80,000 units.

This Particular project can create “A Rural employment revolution” in India.

so for this reason leaves can be converted as a value added product where
there is a high demand for the eco- friendly product so we started with the
manufacture of areca palm leaf plates because they are the replacement of
thermal coal plates, paper plates and plastic plates. Areca plates are eco-
friendly, they are completely made up of organic materials, which is a fallen
leaf collected from areca palm tree. The use and throw areca leaf plates are
made up of areca leaf are 100% biodegradable and compostable.

2
These are hygienic, non-odorous, non toxic, light weight Plates are made up
of areca leaf and these are environmental friendly. An economical disposal
alternative for all catering occasions.

Utensils like dishes, glasses are made from plastic-thermocol these days
which are used in various functions like marriages, birthdays etc. However,
these plates and glasses are not environment friendly at all. But recently,
dishes made from sugarcane waste and Areca nut leaves are getting attention
in the market because of their environment friendly nature. These elegant,
disposable party plates made from Areca leaf are an eco-friendly alternative
to conventional disposable plates. These biodegradable areca leaf plates are a
natural and renewable resource. Areca Leaf that are naturally discarded from
the areca tree are collected from the forest floor and no trees are cut.

These eco-friendly dishes are 100% disposable and not harmful for the cows
and buffaloes. They are easy to wash and comfortable while traveling. The
disposable plates and bowls are an alternative to plastic and paper plates. The
products are natural, compostable and biodegradable yet look stylish. The
demand is high within the country too.

Until the end of the last decade, environment-friendly and sustainability were
not a deciding factor in our purchases. But now we’ve started realizing the
devastating effects of plastic products and day-by-day becoming more
environmentally conscious.People thinking has changed in consumption.
They want to keep up our earth free from plastic pollutants. So, they want to
make a more eco-friendly choice over unsustainable options. ecofriendly
disposable plates are easy to handle and dispose of after use. As, There is a
large scope for eco-friendly products, where these products fall under the
small scale manufacturing sector where it can be done with small amount of
capital investment with the higher profits.

The Biodegradability Myth

Manufacturers of most biodegradable and compostable dinnerware market

their products on the premise that users will compost their used products in
their home composters or will have access to commercial composting
facilities. The majority of such consumers dispose of the used

3
plates into regular trash with the understanding that it will decompose in the
landfills- although the fine print in the product packaging provides only the
potential biodegradability qualities of the product in controlled conditions.
This green washing and misinformation has perhaps used the confusion of the
growing environmentally-conscious consumer to benefit the manufacturers,
while having done nothing for the environment.

1.1 Manufacturing process

Our products are manufactured from fallen dry sheaths of Betel nut trees. The
areca sheath when dried will fall from the tree and it is collected from the
farms fresh and used for making products. These sheaths are available in
plenty in the South India region. The usage of these leaves was started from
our ancestors. We are only making them into attractive shapes to meet the
different customer requirements.

Fig no: 1.1 Manufacturing process

The arduous specialty would now be able to be changed over into a machine
task to make these holders in exquisite shapes and sizes. With the ban in the
use of plastics, there is an increase in the production of areca plates. Existing
machine's tasks devour a great deal of labor, vitality and time. The existing
pedal-type machine, which is used to manufacture bowl/plate from areca leaf
sheath, consists of a set of die-punch, cutter, a foot lever (to

4
lift die), and a frame. It has following drawbacks: Performance of cutter is
unsatisfactory; High manpower is required to operate machine; Structure of
the machine is large; Operation in standing position is inconvenient
especially for physically handicapped persons; Excessive operation leads to
back pain and fatigue; and Die shapes are not standardized. To overcome all
these drawbacks we have proposed Automatic Areca Nut Plate Making
Machine. This machine is essentially proposed for expanding the efficiency
and diminishing labor in the generation of areca leaf plates.

Furthermore, the manufacturing of plate is automatic and the owner likewise

gets the tally of the aggregate sum of plates produces on his cell phone via
Android Application and the owner could also control the cylinder using that
application in case of any error occurred. Android Application also provides
customer support to contact the manufacturers in case of any failure.

Machine Operation

New hand-operated machine is clamped on a bench using 4 nuts and bolts,

and machine becomes ready for use. It is recommended that before start of
operation, heating of die-punch has to be done. Die-punch set can be changed
depending upon availability of raw material and market demand.

Electricity-based Machine

In electricity-based machine, to produce a single product, initially thermostat

for both die and punch must be adjusted to required temperature.
Temperature and time of production required to produce a single product
varies with product size. After cutting raw material in a predefined size,
product has to be put in machine for shaping. After placing raw material,
punch has to move with hand wheel and to hold punch for a particular time,
one lock is fitted at upper supporting plate.

Advantages of palm leaf plate:

 Extra Income to areca nut farmers
 Made from the leaves and sheath of palm trees which are considered
as waste product of product. Therefore no cost incurred on its raw

5
 material.

 Alternative of plastic plates which are non biodegradable

 Save the environment from the pollution as plastic is non biodegradable.
Eco Friendly
 Plates can be used as fertilizers as these are biodegradable Development
of a suitable technology has been one of the biggest
achievements of Areca-nut Leaf Plate Manufacturing Project (ALPMP). The
technology developed for and employed in the project has negated the issues
of production challenges that occurred due to humid weather conditions, and
low quality and fungus prone products. A major attraction of this initiative is
the innovative and environment friendly product, which is also available in
multiple sizes and in smart designs. In order to expand the scope of the
project and to 4 ensure smooth operation of the units, the project invested
extensively in training and workshops for the entrepreneurs. The most
distinguished achievement of the project lies in its ability to develop
entrepreneurial spirit among the rural unemployed youth, by providing them
a dignified livelihood generation activity. It is providing a subsidiary
occupation along with farming, ensuring year long employment for the rural
population since agriculture is a seasonal activity in the state.

Features:
 Unique
 Variegated sizes
 Intricate designs
 Hygienic & Odourless
 Do not alter taste of the food on the plate
 Freezer, Microwave & Oven Safe
 Leak Proof
 The strongest and most heat tolerant disposable plate
 Economical & Commercially Viable
 Biodegradable, Compostable & Sustainable
 100% Natural, Non-Toxic & Organic
 Naturally biodegrade within 6-8 weeks

6
  After use, it can be utilized as cow fodder

Areca leaf plates are made from the naturally shed leaf sheaths of Areca Nut
Tree. The areca leaves are simply collected, pressure washed, scrubbed, sun
dried and then with the application of heat and pressure formed into
appropriate shaped plates. Plates once used can be used as a good fertilizer
which enhances plants growth, a good source of organic manure. The
disposable plates and bowls are an alternative to plastic and paper plates. The
products are natural, compostable and biodegradable yet look stylish. The
demand is high within the country too.

Areca leaf plates are good replacement of thermocol plates, paper plates and
plastic plates as they are eco-friendly. They are made in India and exported
all over the world. So, there is a large export market for areca plates. Areca
Leaf Plate exporters in India supply these plates which are in supreme
demand owing to their low cost and solid construction on top of it
environmental friendly nature. The products are made from high-quality leak
proof and defect free palm sheath.
1.2 Literature Review

1. Kalita, P,Dixit U S, MahantaP, Saha, U K (2008)

An efficient, high performance and user-friendly hand-operated machine for

bowl and plate manufacture from areca palm leaf sheath has been designed.
New machine is very effective, as production time of bowl (15 cm diam) has
reduced by 50% and that of plate (30 cm diam) by 30% in comparison to
existing pedal-type machine. Cost of new machine is 50% less than existing
machine

2. Chowdhury, Kirti (2020)

With the ever-expanding awareness of biodegradable tableware, exporting

Areca leaf plates to build an eco-friendly environment is our primary
initiative. These plates are excellent substitutes for glassware or plastic ware.
The present study makes an effort to understand and know the process of

7
preparation of utensils from the sheath of areca nut tree and to identify the
advantages of areca leaf made utensils compared to plastic made plates.
Further, an assessment of the recent trend of export of areca leaf-made
utensils along with related aspects and benefits associated with
encouragement of areca industry has been done as part of the study. Findings
indicate that Areca leaf made utensils have very high environmental and
aesthetic value. However, inspite of having multiple benefits of areca leaf
made utensils it does not occupy a satisfying market position. Promotion of
areca industry can help to create employment opportunities for the local
people and it indirectly helps to develop craft skills of the local people.
Therefore, the present study will help support further research studies and
policymaking in this sector that combines both environmental sustainability
and rural economy.

3. Sreevalsa Kolathayar, C. A. Aravind & Sitharam TG (2019)

In this paper, the possibility of using naturally available low-cost areca leaf
sheaths as an alternative to the commercially available HDPE geocell has
been explored by conducting the laboratory model footing tests on soft soils.
The experimental results proved that the provision of areca leaf sheath as an
alternative to the HDPE geocells as soil reinforcements improved the bearing
capacity of the soil considerably. The bearing capacity of the soil reinforced
with areca cell and areca grid was found to be increased by approximately
times compared with that of the soil reinforced with commercially available
geocell and geogrid. The increase in bearing capacity of the soil reinforced
with areca cell and areca grid was almost four times compared with that of
unreinforced soil. The experimental results were found to be in accord with
the analytical formulation considering the factors such as lateral support
reaction, vertical stress distribution reaction and grid reaction.

4. Oi Ka Jong, Tze Mi Yong and Muharam Rafidi Jaafar

Areca leaf sheath has been used traditionally to produce disposable plates and
bowls in India for decades. This project aims to produce disposable takeaway
food containers by using the fallen Areca leaf sheath. In order to achieve the
aim, a press mold is self-designed and fabricated, and installed into a

8
 disposable paper plate press machine to form the sheath into container shape.
The density of the sheath is 0.423 g.cm−3 and 0.391 g.cm−3 before and after press
respectively. The moisture content percentage obtained before heat press is
19.19%, while after press is 5.01%. The sheath at its sheath line direction shows
higher stiffness, which is 416.9g.cm, compared to the perpendicular sheath
direction of 65.1g.cm. The sheath has a water absorption rate of 0.021g.min −1,
which fulfils the purpose of disposable food packaging to contain foods with
soup or sauce.

5. Sreevalsa Kolathayar ,CA Aravind &Sanjay Kumar Shukla

(2019)

This paper presents the suitability of geogrids made from areca leaf sheaths, as
soil reinforcement. The performance of areca geogrids was evaluated through the
model footing tests and the same has been compared with the performance of
synthetic polymer geogrids as well as coir geotextiles. The effect of embedment
depth of areca geogrid within the sand bed on its bearing capacity was presented
along with the behavior of multilayered areca geogrid-reinforced sand beds. The
performance comparison of areca geogrid- reinforced sand beds with coir geogrid
and polymer geogrid-reinforced sand beds showed that the areca grids provided
improved performance

9
 CHAPTER-2
SOCIAL RELEVANCE

10
 2. SOCIAL RELEVANCE
Manufacturing of areca plam leaf plate are not only an business opportunity
but also its an social relevance. The Mechanism followed for manufacturing
is 100% natural and they do not contain any artificial additives or chemical
ingredients so that it has created new trend in catering sector because its vey
natural, eco-friendly, bio-degradable , Hygienic and heat resistant to serve the
food .

In manufacturing of plates only fallen leaves are used, thus there is no harm
to cut a trees in the process, which helps in maintaining environment and it is
also an green marketing process. This areca plates are made for use and throw
purpose. Hence areca leaf plates have additional values even after using.
Disposal products can be a good source of organic nature. They can be used
as good fertilizer enhances plant growth they can also be used as a good
animal folder. By eating food in these bio-degradable products helps in avoid
the cancer and solves global warming issues.
By considering all these aspects it can be concluded that areca palm leaf is
socially relevant because it reduces some of the health issues; along with that
it create the entrepreneurial and employment opportunity with the low
investment and makes higher profit

2.1 HARMFUL NATURE

Disposable plastics used in packaging foodstuff meant for human

consumption contain harmful compounds. Improper disposal of these
packaging products leads to these harmful compounds finding their way to
water bodies, where they dissolve over a long time due to their non-
biodegradable nature. Littered plastics are also harmful to animals because
they occasionally eat them and die. Additionally, plastics fabrication involves
the use of potentially dangerous chemicals, which are added as stabilizers or
colorants. Most of these chemicals have not undergone an ecological risk

11
appraisal, and their impact on human well-being and the environment is
presently vague. One example is phthalates, which are used in the
manufacture of PVC.

2.2 ENVIRONMENTAL DEGRADATION

Plastics are generally non-biodegradable; hence, they may take centuries to
decay. This is due to the intermolecular bonds that constitute plastics, whose
structure ensures that the plastics neither corrode nor decompose. Plastics
disposed of indecently get washed away to water reservoirs. They clog
waterways and float on reservoirs, polluting and making them unsightly.

2.3 LOW MELTING POINT

Plastics generally have a low melting point, so they can’t be used where heat
levels are high. This also means they cannot be used as protective barrier for
furnaces. Some plastic products are highly flammable — polystyrene,
acrylics, polyethylene and nylons commonly used in packaging, home and
office appliances. This makes them a fire hazard.

2.4 DURABILITY

Plastics generally have a short useful life compared to metals. This short life
cycle results in pile- ups of unwanted garbage in the office, home or waste
yards. Although some of the plastics are recycled, most remain uncollected in
dump sites and pollute the environment. Additionally, polythene bags are
easily carried by wind, something that makes them almost impossible to
collect for recycling.

12
 CHAPTER-3
ENTREPRENEURIAL
OPPORTUNITIES

13
 3. ENTREPERNEURIAL OPPORTUNITY
INCLUDING BUSSINESS PLAN

Employment Opportunity Each Areca leaf plate manufacturing unit provides

direct employment to 3 persons and there is an indirect impact of creating
employment for 2 other persons. Rural area is selected to create employment.
Also work shed & labor will be at low cost

Major markets For Areca Leaf Plates

 First quality plates will be targeted for International market

 Second quality plates will be targeted to local markets like dealers,

super market, restaurants and caterer

These plates act as the best alternative for plastics and because of this reason it
has a good market in international market.

Waste Disposal:

1. Food plates thrown after eating will be naturally degraded within 60

days of time like any plant matter.

2. Manufacturing waste of Areca sheaths will be used for vermin compost,

dry fodder for animals, bio-fuel bricks.

Marketing

The product has a supply constraint in the market and the demand is very high.
The market is expected to have a sustained higher growth for the coming years.
The Govt. policies, changing trend and sustainable development concept will
increase the importance of the product and its marketability.

14
 3.1 Vision & Mission Statement

 Mission: To provide different sizes of processed and good quality

fiber plates as a substitute of plastic which is bio degradable product
at reasonable prices

 Vision: To establish itself in a good condition financially, creating

employment opportunities for our people and save the environment
from the pollution by increasing the production of fibre plate by
which customers will stop the use of plastic plates.

3.2 Purpose of the Project

 Extra Income to areca nut farmers

 Made from the leaves and sheath of palm trees which are considered
as waste product of product. Therefore no cost incurred on its raw
material

 Alternative of plastic plates which are non biodegradable v. Provide

gainful employment to its members.

 Provide assured quality to consumers at a very competitive price

 Save the environment from the pollution as plastic is non biodegradable.

 Plates can be used as fertilizers as these are biodegradable.

3.3 MARKET POTENTIAL:

There is a good market for Areca plam leaf plates as they are disposable
and do not require any maintenance and cleaning. This product is not only
useful in marriages and other social functions, but also in hotels and road side
eating houses. Since the demand is increasing, with the increase in different
types of functions and ceremonies at establishment of hotels, messes and road
side eating houses, there is no difficulty in marketing the product.

15
Business Model and Strategies:

Raw material from own

areca nut palm plant

Extraction of sheath and

manufacturing products

Product for sale in the Prodct for sale in

premises of the Society. the local market.

3.4 SWOT Analysis

1. Strengths:

 Shifting of people from plastic products to bio degradable products.

 Market readily available for product.

 Support from all state as well as from Central Government for

production of substituteof plastic and will save the environment from
pollution.

 Can produce good quality of fiber plates as raw material used

for its productionis considered as waste for existing plant

 Plates can be used as fertilizers after use.

2. Weakness

 Small working capital available and new product in market so

cannot grow high price fiber plates in a short span of time.

16
  Own transport facility not available.

 Low margin as manufacturers cannot sell directly in market.

3. Opportunities

 India looking for the substitute of plastic.

 Good profit margin in fish export.

 Good market for these biodegradable plates.

 Support from Central and State Government.

4. Threats

 No favorable temperature for the cultivation of areca nut palm tree.

 Low cost and low quality of plastic plates.

3.5 MANUFACTURING PROCESS:

Fig 3.1: Manufacturing Process of Areca Leaf Plate

17
 One unit consists of 2 Hydraulic Machine based heat-press machines
replaceable dies of different sizes, and one gas based dryer. Store rooms
(office rooms) are used for the purpose of stocking up raw materials and
finished products. There is also a requirement for water tanks in order to
clean up the sheaths prior to initiating the production process.

Economic Feasibility:

 Extra Income to areca nut farmers

 Alternative of plastic plates which are non-biodegradable.

 Save the environment from the pollution as plastic is non-

biodegradable.

 Eco Friendly.

 Plates can be used as fertilizers as these are biodegradable.

 The product has a supply constraint in the market and the demand
is very high. The market is expected to have a sustained higher
growth for the coming years

Organizational Feasibility:

 The Organization has sufficient infrastructure for this project

like land as they are already doing the cultivation of Areca
palm tree.

 Organization has 30 members who are already working for the

other projects and their revenue is around 15.00 lakhs per
annum. Therefore, project seems to be viable.

 Organization has recruited staff of 3 trained members for this

project that is sufficient for the proper working of this
proposal.

 As the recruited staff is already trained. Therefore, in future

they will treated as a master trainer for the future staff trainer.

18
 Financial Feasibility:

 Total project cost estimated is to be Rs.6.52 lakh, which does not

include the cost of the land as project members have their own
land.

 Total Fixed Capital-Rs.3.61 lakh

After observing its profit and financing sheet through annexure project
seems to viable.

Technical Feasibility:

 As there will be no shortage of raw material as it is easily available

from the owner of this project. Therefore from this point it is viable.

 Machine for processing of Palm tree sheaths are easily available.

Therefore from this point it is also viable. 12

 The product has a supply constraint in the market and the demand is
very high. The market is expected to have a sustained higher growth
for the coming years. The Govt. policies, changing trend and
sustainable development concept will increase the importance of the
product and its marketability.

 Therefore it is technical feasible and we can run this project.

3.6 Plan, Implementation, Monitoring and Evaluation

Marketing (PIME)
Land & Building
The unit will be set up in a owned land of the society which will be used
for the cultivation of areca palm tree, for setting of water tank and its
office area is used for storage. The power, Communication facility etc. are
available.

19
Plant & Machinery

The plant & machinery are enlisted in the economics of the project. They
include sewing machines, embroidery machines, furniture, cutting table etc.
The selected machinery can be made available from authorized suppliers of
these items. Machine spare parts and maintenance will be available on
demand. Each machine has 3 dies of different sizes, which can be easily
interchanged and attached to any machine. The parts of the machine are also
flexible and can be easily replaced or repaired. A dryer was developed
recently in order to support the production processed during even in the rainy
season. The basic units have a capacity to process 1,74,000 pieces of areca-
nut sheaths per annum.

Fig 3.2: Plant and Machinery used in manufacturing of Areca leaf Plate

Storing facility

The sheaths need to be sun dried and stored before production. The sheaths
can be stored for 9- 12 months in a room with concrete posts, sand floor,
bamboo based wall and platforms for keeping the raw materials. TPMPL also
has good storing facility for finished products. After proper packaging, those
can be stored for more than 6 months. Cleaning of sheaths: Just before
starting the production process, the sheaths are carefully cleaned in the water

20
tanks and dried while taking care to retain their moisture content. A specially
designed bio gas based dryer is used for this purpose during rainy seasons.

Raw Material
The raw materials needed include sheath of areca palm tree of different sizes.
They are easily available and care will be taken on the quality of the same.

Staff Labour:

The unit will be operated in one shift. The staff and labors needed for the unit
will be selected from locally and all those employees are trained.

Other Expenses:

The probable other experiences are considered in the economics of the project.
They include water, electricity charges, communication, maintenance, postage
& stationery etc.

Project Cost and Financing

Total project cost has been estimated to be Rs. 6.52 lakh.

S.No Particulars Quantity Amount

1 Machine(including dryer) 1 250000
2 Water Tank, Pump Set and L
25000
Plumbing works
3 Building 50000
(a) Machine Room 18000
(b) Storage Room 0
4 Other equipment and material 8000
5 Misc Furniture and fixture 3000
(a) Preliminary and pre- 5000
operative expenses

(b) Electricity Connection 2000

Total Fixed capital 361000

Table No 3.1.1: Detailed breakup is given above

21
 S.No Salary /Month(Rs) Salary/An num
Proprietor cum 8000 8000 96000
Manager
Skilled labour 6000 12000 144000
Total 20000 240000
Table No 3.1.2: Working Capital

S.No Utilities and Per Per

contingencies Month annum

1 Power charges 1000 12000

2 Travel exp / 500 6000
Transport
3 Repairs and 800 9600
Maintenance
4 Insurance 400 4800
5 Telephone charges 300 3600
6 Stationery and 600 7200
postage
7 Miscellaneous 400 4800
expenses
8 Water Charges 300 3600
Sub Total 4300 51600
Table No 3.1.3: Utilities and contingencies

Project Viability

Based on certain realistic assumptions the future cash flow of the project has
been also worked out. The Internal Rate of Return (IRR) worked out to be
healthy 32 % signifying that the Project will be able to generate the revenue
to cover all the costs incurred in project. Also average Debt Service Coverage
Ratio (DSCR) is worked out to be 1.95 which signifies that project will be
able to generate significant revenue to easily repay its debt/ loan. Hence, the
project is financially viable.

22
3.7 DATA ANALYSIS AND INTERPRETATION

Resulting to social event the basic discretionary data huge with the ultimate
objective of this endeavor work, it was planes to accumulate the basic data
furthermore on the themes/subject to a model examination. Along these lines
a proper survey was arrangement to get the viewpoints impression of
respondent on significant edges. A copy is set at annexure.
3.7.1 QUESTIONNAIRE DESIGN
The review was arranged so the underlying five choices are identifying with the
individual data which are Strongly Agree, Agree, Neutral, Disagree, Strongly
Disagree

No. of Respondents based on Gender

Sex Total Percentage %

Male 61 61%
Female 39 39%

Total 100 100%

Table no: 3.7.1.1

Gender

Female
39%

Male
61%

Fig 3.3: Representation of No. of Respondents based on Gender

Interpretation

From the above table it can be inferred that 61% of the respondents are male
and 39% of the respondents are female. It is inferred that majority 61% of the
respondents are male.
23
 No. of Respondents based on Profession

Profession Total Percentage %

Businessman 23 23%
Employee 24 24%
Student 52 52%
Others 1 1%
Total 100 100%

Table no: 3.7.1.2

Profession
Businessman Employee Student Others

1%

23%

52%

24%

Fig 3.4: Representation of No. of Respondents based on Profession

Interpretation:

From the above graph, it can be inferred that,23% of the respondent are
businessman, 24% are employee, 52% respondent are students and 1% are
from other profession. It is inferred that majority 52% respondents are
students.

24
 Location of respondents

Location Total Percentage

%
Rural 38 38%
Urban 36 36%
Metropolitan 26 26%
Others 0 0
Total 100 100%
Table no: 3.7.1.3

Location
Rural Urban Metropolitan

26%
38%

36%

Fig 3.5: Representation of No. of Respondents based on respondents

Interpretation:

From the above graph, it can be inferred that,38% of the respondents are from
Rural area, 36% are from Urban and 26% respondents are from Metropolitan.
It is inferred that majority 38% are from Rural area.

25
 Family Income

Family Total Percentage

income %
Below 10,000 14 14%
11,000 to 17 17%
20,000
21,000 to 32 32%
30,000
More than 37 37%
30,000
Total 100 100%

Table no: 3.7.1.4

Family Income
Below 10,000 11,000 to 20,000 21,000 to 30,000 More than 30,000

14%

37%
17%

32%

Fig 3.6: Representation of No. of Respondents based on Family Income

Interpretation:

From the above graph, it can be inferred that, 14% of the respondents Income
belongs to below 10,000, 17% of the respondents belongs between 11,000 to
20,000, 32% of the respondents belongs to 21,000 to 30,000, 37% of the
respondents belongs to more than 30,000. It is inferred that majority 37% of the
respondents belongs to more than 30,000.

26
 Do you aware of Eco-friendly products like areca leaf
plates?

Aware of Total Percentage

areca leaf %
plates
Yes 63 63%
No 22 22%
May be 15 15%
Total 100 100%

Table no: 3.7.1.5

Aware of areca leaf plates

May be
15%

No
22%
Yes
63%

Fig 3.7: Representation of No. of Respondents based on awareness of areca

leaf plate

Interpretation:

From the above graph it can be explained that 63% of the respondents are
aware of areca leaf plates, 22% are not aware of it and, 15% respondents are
may be aware or no. It is inferred that majority 63% of the respondents are
aware of areca leaf

27
 Do you agree that areca leaf plates are Eco-friendly?

Areca leaf plates are Percentage %

Eco-friendly Total
Yes 71 71%
No 10 10%
May be 19 19%
Total 100 100%
Table no: 3.7.1.6

Areca leaf plates are Eco-friendly

Ye N May be

s o

19%

10%

71%

Fig 3.8: Representation of No. of Respondents based on Eco-friendly plates

Interpretation:

Found nearly 71% of the respondents agrees that areca leaf plates are Eco-
friendly, 10% of the respondents says No and 19% are may be agree or no. It
is inferred that majority % of the respondents agrees that areca leaf plates are
Eco-friendly

28
 Which type of plates do you prefer occasionally?

Plates Responses prefer

occasionally Total Percentage %
Plastic plates 33 33%
Polymer plates 17 17%
Areca leaf plate 45 45%
Others 5 5%
Total 100 100%
Table no: 3.7.1.8

Plates Responses preferoccasionally

Plastic plates Polymer plates Areca leaf plate Others

5%

33%

45%

17%

Fig 3.9: Representation of No. of Respondents based on they prefer

occasionally

Interpretation:

Found nearly 33% of the respondents prefer Plastic plates occasionally. 17%
of the respondents prefer Polymer plates occasionally, 45% of the
respondents prefer Areca leaf plate occasionally, 5% of the respondents
prefer other plates. It is inferred that majority 45% of the respondents prefer
Areca leaf plate occasionally

29
 Are you interested to buy areca palm leaf plates?

Respondents
Interested to Total Percentage
%
buy areca
leaf plates
Yes 61 61%
No 13 13%
May be 26 26%
Total 100 100%

Table no: 3.7.1.9

Respondents Interested to buy areca

leaf plates
Yes No May be

26%

13% 61%

Fig 3.10: Representation of No. of Respondents based on interest to buy

areca leaf plates

Interpretation:

Found nearly 61% of the respondents are interested in buying areca leaf
plates, 26% are not interested in it and 26% may buy or may not. It is inferred
that majority 61% of the respondents are interested in buying areca leaf plate

30
 In functions, which type of plates prefer most?

Type of plates
respondents Total Percentage
prefer %
Use and throw 25 25%
Washable 16 16%
Eco-friendly 29 29%
Both 1&3 30 30%
Total 100 100%

Table no: 3.7.1.10

Type of plates respondents prefer

Use and throw Washable Eco-friendly Both 1&3

25%
30%

16%

29%

Fig 3.11: Representation of No. of Respondents based on types of plates

prefered

Interpretation:

Found nearly, 25% of the respondents prefer use and throw plates in
functions, 16% prefer washable, 29% prefer eco-friendly and 30% of the
respondents prefer both use and throw plates and eco-friendly plates. It is
inferred that majority 30% of the respondents prefer both use and throw
plates and eco-friendly plates in functions.

31
 Kindly rate the below mentioned statements from 1 to 5 wherein;
1- Strongly agree, 2- Agree, 3-Neutral, 4-Disagree, 5-Strongly disagree

Do you agree that, buying rate of areca leaf plate increases according to
season?

Ratings Total Percentage%

Strongly 20 20%
agree
Agree 27 27%
Neutral 28 28%
Disagree 17 17%
Strongly 8 8%
disagree
Total 100 100%

Table no: 3.7.1.11

Ratings
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly
disagree
Fig 3.12: Representation of buying of areca leaf plate increase according to
sales

Interpretation:

From the above graph it can be explained that 20% of the respondents
strongly agrees, 27% respondents agrees, 28% are neutral, 17% of the
respondents disagrees and 8% of the respondents strongly disagree.

32
 Do you agree that, Sales of Eco-friendly plates are higher than that
of plastic or Other plates?

Ratings Total Percentage%

Strongly 12 12%
agree
Agree 28 28%
Neutral 36 36%
Disagree 17 17%
Strongly 7 7%
disagree
Total 100 100%

Table no: 3.7.1.12

Ratings
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly
disagree

Fig 3.13: Representation of No. of Respondents based on sales of eco-

friendly plates

Interpretation:

From the above graph it can be explained that 12% of the respondents
strongly agrees, 28% respondents agrees, 36% are neutral, 17% of the
respondents disagrees and 7% of the respondents strongly disagree.

33
 Do you agree that, both hot and cold food can be served through eco-
friendly plates?

Ratings Total Percentage%

Strongly 21 21%
agree
Agree 21 21%
Neutral 37 37%
Disagree 12 12%
Strongly 9 9%
disagree
Total 100 100%
Table no: 3.7.1.13

Ratings
40

35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

Fig 3.14: Representation of No. of Respondents based on serving of cold

and hot food

Interpretation:

From the above graph it can be explained that 21% of the respondents
strongly agrees, 21% respondents agrees, 37% are neutral, 12% of the
respondents disagrees and 9% of the respondents strongly disagree.

34
 Do you agree that, In COVID-19 use of areca plates has
increased

Ratings Total Percentage%

Strongly 14 %
agree
Agree 26 %
Neutral 36 %
Disagree 13 %
Strongly 11 %
disagree
Total 100 100%
Table no: 3.7.1.14

Ratings
40
35
30
25
20
15
10
5
0
Strongly agree Agree Neutral Disagree Strongly
disagree

Fig 3.15: Representation of No. of Respondents based on use of areca

plates after COVID-19

Interpretation

From the above graph it can be explained that 14% of the respondents
strongly agrees, 26% respondents agrees, 36% are neutral, 13% of the
respondents disagrees and 11% of the respondents strongly disagree.

35
 Do you agree that, usage of water can be reduced by
using areca plates

Ratings Total Percentage%

Strongly agree 24 24%
Agree 26 26%
Neutral 29 29%
Disagree 10 10%
Strongly 11 11%
disagree
Total 100 100%
Table no: 3.7.1.15

Series 1
35
30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly
disagree

Fig 3.16: Representation of respondents based on usage of water can be

reduced by using areca plates

Interpretation:

From the above graph it can be explained that 24% of the respondents
strongly agrees, 26% respondents agrees, 29% are neutral, 10% of the
respondents disagrees and 11% of the respondents strongly disagree.

36
 CHAPTER-4
REVIEW OF NATIONAL
AND INTERNATIONAL
SENARIO

37
 4.1 National scenario
 India is leading producer of Arecanut in the world.
 In India Karnataka leads other states in production, which is at whopping
47%.
 Again, in Karnataka, Shimoga ranks first in area and production, 23% and
21%, respectively. The nut derived from dried arecanut fruit is called
Arecanut, Supari, Betelnut.
The disposable tableware is mainly made from paper, pulp, Polyethylene
terephthalate, polyethylene, Starch Blends, biodegradable CPLA, PLA and
Talc, etc. including the disposable plates, disposable bowls, disposable cups
and disposable silverware.
The main applications of disposable tableware are household and commercial
use. Commercial use is dominating the end market, occupy for about 79.6 %
of market share. The Asia-Pacific will occupy for more market share in
following years, especially in China, also fast growing India and Southeast
Asia regions.
Compostable tableware’s products are used for serving food. These products
are biodegradable and release valuable nutrients into the soil, aiding the
growth of trees and plants when they breakdown. Compostable plates can be
placed into the compost bin after use. These products degrade within several
months in an industrial composting facility and produce no toxic residues.
These plates are reusable and are made up of renewable resources. These
renewable sources are made from all-natural materials such as agricultural
residues, palm leaves, bagasse, bamboo, and cornstarch-based PLA plastic.
These eco-friendly tableware’s are sturdy enough to hold hot or cold food
and easily gets biodegraded after use.
Compostable plates and bowls are the perfect solutions for emerging green
businesses. The growing awareness about the adverse effects of plastic such
as massive plastic pollution and its grave consequences on aquatic and aerial

38
creatures after dumping this product into the sea are the major driving factors
for the growth of compostable tableware market. The increasing demand for
safe, sustainable and environmentally friendly cutlery owing to the rising
number of fast-food restaurants and cafeterias is boosting the compostable
tableware market.

Compostable disposables are a viable alternative that provides the

convenience of disposable plates when used in catering for parties, picnics or
other occasions along with an added advantage of no negative impact to the
eco-system. However, the lack of awareness about the benefits of
compostable tableware’s and the poor management of organic waste hampers
the growth of compostable tableware market. The cost of compostable
tableware is also higher as compared to the traditional disposables. Moreover,
the rising enforcement of environmental laws and the growing need for better
waste management is anticipated to create an opportunity for the growth of
compostable tableware market.
Karnataka has a thriving cottage industry of areca ware and there are
reportedly 6,000 large and small “bioplate” factories in the state. In low-
tech workshops, leaf sheaths are collected, washed and pressed into a variety
of shapes using moulding machines. The plates are used at green weddings,
temples and sustainable ventures like the Green Path in Bengaluru, which
specialises in organic food. Owner H.R. Jairam uses the plates for outdoor
catering and processes the waste at his farm outside the city. “It make a
healthy compost,” he said. “All the micronutrients are in it.”
In India 4 lakhs hectors of areca crop has been cultivated. Near about 5,400
million areca leaves are shredded and treated as an agro waste. One Areca leaf
plate manufacturing unit need 70,000 leaves per year. In this scenario nearly
about 80,000 plates manufacturing units can be established all over India. 3
lakhs fresh employments can be given in 80,000 units. This particular project
can create “A Rural Employment Revolution” in India. At Present only 3,000
units are established all over India, in this 2,500 units are established by Eco
Green unit for self help groups, small entrepreneurs and farmers in India. Due
to plastic pollution and awareness of this kind of Eco friendly Bio degradable
items there is a growing demand for leaf plates and cups in global level.

39
4.2 Global Scenario:
Global Palm Leaf Plate Market 2020 by Manufacturers, Type and
Application, Forecast to 2025 comprises the investigation of various
components that expand the market’s development. The report gives a broad
analysis of the global Palm Leaf Plate market covering market size,
segmentation, market share, and competitive landscape. The report identifies
various segments of the market such as product type, end-user, competitive
landscape, and key regions in order to represent the structure of the market.
The report comprises restraints, restrictions, and drivers that change that
affect the market. It throws light on current patterns and noteworthy
achievements. The report provides regional and country-level market size
analysis and CAGR estimation of market growth during the forecast period
from 2020 to 2025.

The top countries that constitute to export market for areca leaf plates
made in India are:

 USA (36%)
 Netherlands (17%)
 Germany (16%)
 Spain (10%)
 UK (6%)

The global market for foodservice disposables is anticipated to see a steady

growth between 2017 and 2021. By the end of 2021, the global foodservice
disposables market is estimated to bring in US$ 27,187 Million revenue.
Increasing number of restaurants are using disposable plates, cups, trays,
bowls, etc., to serve various food items. Majority of the restaurants have
started providing catering services, hence the use of foodservice disposables
have also increased. Manufacturers are also providing customized
foodservice disposables as per the requirement of restaurants. Moreover,
increasing number of customers have started using catering services provided
by restaurants, especially during celebrations. Meanwhile, in the recent years,
retail stores and hospitality industry have also started using foodservice

40
disposables to provide various food products. A rise in the number of
restaurants in developing countries and popularity of takeaway meals is
fueling the growth of foodservice disposables in Asia Pacific region.

Compostable disposables are a viable alternative that provides the

convenience of disposable plates when used in catering for parties, picnics or
other occasions along with an added advantage of no negative impact to the
eco-system. However, the lack of awareness about the benefits of
compostable tableware’s and the poor management of organic waste hampers
the growth of compostable tableware market. The cost of compostable
tableware is also higher as compared to the traditional disposables. Moreover,
the rising enforcement of environmental laws and the growing need for better
waste management is anticipated to create an opportunity for the growth of
compostable tableware market. Areca leaf is one of many esoteric materials
that has wound up in the global supply chain for the $27-billion disposable
tableware industry as a sustainable alternative to plastic. Areca palm trees
are abundant in peninsular India, where 80% of the areca nut crop is grown.
Traditionally, leaf sheaths were treated as agricultural waste and burned.
Their transformation into chic, durable dinnerware for export is a relatively
recent phenomenon. Nobu Matsuhisa, an acclaimed chef, praised them in a
product testimonial saying their “natural and sleek design is the perfect
canvas to showcase any chef’s creations.”
The Global Palm Leaf Plate market report includes all the perspectives of the
Palm Leaf Plate market. The research study provides a broad platform that
opens several gateways to several firms, associations, new startups, and
collaborations. The Palm Leaf Plate research study includes the effects of
COVID-19 on the Palm Leaf Plate market. COVID-19 has greatly impacted
the overall global market scenario. The statistical data and the qualitative
information included within this dossier are reliable and accurate and are
updated based on the current market scenario and trading conditions.
Observations and facts about the Palm Leaf Plate market analysis are
brilliantly placed in the report by the research analyst so that Palm Leaf Plate
market study is streamlined properly.

41
 CHAPTER-5
CHALLENGES

42
 5.CHALLENGES
 Raw material demand in rainy season, as the demand goes high
in rainy season raw material cost will also be high at that time.
 To many competitors
 Labors
 No stable market for some months marriage function will not take place.
 Even if there is no regular order you need to take care of expenses like
rent salary etc.

5.1 CHALLENGES IN IMPLEMENTATION

Financial constraints have emerged as the major challenge in setting up of
new units in the region in spite of concentrated efforts by the project for
creating financial linkages with banks and other financial institutions. The
inability to procure loan in most instances is due to numerous reasons like
limited capital to extend collateral security, red tapism involved in obtaining
loans, ignorance of entrepreneurs and attitude of the banks. Most financial
institutions expressed doubt on the viability of the project while sanctioning
loans against it for the small time farmers.
Another crucial challenge in implementing the project has been the traditional
attitude of the rural people. The nature of the project allows its functioning
from mainly rural areas. However, for the rural folk, agriculture remains their
prime mode of livelihood, even though the Arecanut Leaf Plate Project
provides ample opportunity for economic growth. For most part of the rural
Assam, the farmers have taken up the project only as an additional source of
income, to be carried out only in the non- agriculture seasons. This
phenomenon has largely hampered the growth of the industry in the region.

43
 CHAPTER 6
CONCLUSION

44
 6 CONCLUSION

As industrialization is one of the major forces of economic development in

any region, micro and small scale industries play a pivotal role in
transforming the economy The Areca Leaf Plate Manufacturing Project not
only provides a viable employment opportunity for the unemployed youth but
also facilitates attainment of self reliance, equitable distribution of national
income and balanced regional growth. Economic freedom is believed to pave
way for regional peace and integration

And the government has banned the usage of plastic and polymer products,
hence the trend for eco-friendly product has increased, Due to this it has
created the business opportunity. Barring few challenges that exist in all small
scale industries, the project exhibits tremendous potential for capturing both
the national and international market with its unique environment friendly
product.

45
 BIBLIOGRAPHY
1. Kalita, P,Dixit, U S,MahantaP, Saha, U K(2008) A novel energy
efficient machine for plate manufacturing from areca palm leaf sheath
Pages 807-811,ISSN- 0022-4456
2. Chowdhury, Kirti.2020, Utilisation of bio-diversiy product (Areca
leaves) for preparation of utensils. Clarion: International
Multidisciplinary Journal . Feb2020, Vol. 9 Issue 1, p12-16. 5p.
3. Sreevalsa Kolathayar ,C. A. Aravind & Sitharam TG, Model Tests
and Analytical Studies on Performance of Areca Leaf Cells as
Cellular Confinement in Soil16 Aug 2019, Published online: 26 Sep
2019
4. Bhargav VK and Gaikwad BB 2012. Cutting characteristics of
aArecanut sheath for use as animal fodder. International Conference
on Agricultural & Horticultural Sciences September 14-15,
Hyderabad International Convention Centre, India.
5. Prakash TNK 2012. Arecanut economy at the cross roads. Report of
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(GKVK Bengaluru) 80-81. Sharma KD, Pathania MS and Harbans
L2010. Value chain analysis and financial viability of agro-
processing industries in Himachal Pradesh. Agricultural Economics
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6. Shinoj P, Raju SS, Praduman K, Siwa M, Pawan Y, Vishal ST and
Chaudhary KR 2010. An economic assessment along the jatropha-
based biodiesel value chain in India. Agricultural Economics
Research Review 23: 393-404.
7. Sreevalsa Kolathayar ,CA Aravind &Sanjay Kumar Shukla,
Performance Assessment of Areca Leaf Grids for Soil Reinforcement
Applications Published online: 27 Aug 2019.
8. Kiran Kumar R. Patil, B. Chinnappa, G.R. Manjunatha and H.S.
Sowmya Eco-friendly Arecanut Leaf Sheath Products: An Economic
Analysis Indian Journal of Ecology (2019) 46(2): 431-46

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47