Performance of Coir Industries in Karnataka - A Management Appraisal
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Date
2012
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Publisher
UAS, Dharwad
Abstract
Coir is an unique natural fibre produced by coconut (Cocos nucifera) used in
diverse applications. It is an important sector as far as economy of the country is
concerned. Most of the coir workers are coming from socially and economically
backward classes. The industry in India provides direct employment to more than 6.4
lakh workers and majority are women’s. To fulfill the objectives of the study, four
taluks namely Tumkur, Gubbi, Channarayapatna and Arsikere were purposively
selected from the two districts namely Tumkur and Hassan. The primary data were
collected from the coir industrial owners. Secondary data were collected from the
records maintained by the coir industry owners. These data pertained to the details of
assets and liabilities, extent of investment made at different points in time, cash
inflows and cash outflows. The data were collected for a period of eight years.
The results showed that on an average total capital investment was highest in
co-operative coir units (59.56 lakhs) than in private coir units (46.00 lakhs). Average
Net present value (NPV) in co-operative coir units was higher than that of private coir
units. The internal rate of returns of all other units in both the units was higher than
the discount rate (12 per cent) considered in the analysis, B:C Ratio was higher in
private coir units (Rs.1.17) as compared to co-operative coir units (Rs.1.14). Similarly
co-operative coir units took higher time to recover the investment (1.56 years)
compared to private coir units (1.55years). Average total cost of producing one tonne
of coir fibre is (Rs.29435.00) was high in private coir units and in co-operative coir
units is (22986.30). In case of private coir units the gross return per tonne was
Rs.19390.00 and co-operative coir units is Rs.16851.30. The results indicated that
investment in co-operative coir units was high as compared to private coir units.
The private coir units should also update the production technology through
additional investment to harness economies of scale in their operations.
Description
Keywords
Agribusiness Management