The Dawn of Indian Industry revolves around new products, new applications and new end uses that need to be looked at by the entrepreneurs and the existing processors. One of the product mix leading to a higher net profitability which an entrepreneur or an existing processor of HDPE woven sacks can look at is HDPE Agrishade nets. The word �agrishade net� is termed for a net which prevents excess sunlight from entering into the plants and to retain moisture levels in the soil for proper growth of these plants leads to an increase in productivity (yield) of the plants. These agrishade nets are made up of high density polyethylene (HDPE). Existing HDPE Woven sack processors can manufacture HDPE Agrishade nets on the same tape extruder with an additional investment in knitting machines. Thus increasing the product mix leading to higher capacity utilization of the machinery would bring in a higher net profitability. Entrepreneurs with dynamism in marketing and with marketing these high volumes all over the country irrespective of the location of the project would lead to a higher net profitability.
In 2007, India was No.1 producer of fruits (accounting for 32 million tons out of 370 million tons of fruits production in the world) and No.2 producer of vegetables (accounting for 71 million tons out of the 473 million tons of vegetables produced in the world). A huge potential exists for HDPE Agrishade Nets which needs to be tapped in our country. (Source: www.punebds.com/tl.asp)
Assuming :
1 Acre cultivated land requires 6000 sq mts of HDPE Agrishade Nets
or 1 Hectare requires 15,000 sq mts of HDPE Agrishade Nets
& assuming 140 gms/sq mt with 75% shading & 75,000 hectares in Tamil Nadu & Karnataka amounts to a potential of 1,57,500 TPA.
Net Cultivated Area in India is 1420 lac hectares.
Assuming only 0.1% market penetration for HDPE Agrishade Nets, 1.4 lac hectares based on the above internet statistics, Potential for HDPE Agrishade Nets in India is 2,94,000 TPA. (Assuming only 0.1% of Net cultivated area and 1 Hectare requires 15,000 sq mts & 140 gms/sq mt with 75% shading)
(Source : http://Land Use in Southern States.htm, http://PACS , http://www.cseindia.org )
Agribusiness - India
India is the largest producer of milk, fruits, pulses, cashew nuts, coconuts and tea in the world
Second largest producer of rice and wheat in the world, and fourth largest in coarse grains
India is amongst the top 3 producers in the world
- Poultry products
- Fruits & vegetables
- Spices
One of the largest producer of
- Cotton
- Sugar, Sugarcane
- Peanuts
25% of GDP
64% Employment
18% of India 's exports
(Source : CMIE)
What is Plasticulture?
Plasticulture is the use of plastics in Agriculture, horticulture, water Management, food grains storage and related areas
Plasticulture in water management
Drip Irrigation
Controlled Environment Agriculture
LDPE Film Mulching
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Strategy for achieving a higher market penetration of HDPE Agrishade Nets
Achieve higher market penetration parallely via
1. Commission Agents
2. Qualified persons from field of Agriculture
3. Dealers of plastic products related to agriculture
Commission agents who know the local language would communicate more effectively with farmers
Farmers would have more faith and believe local persons from their village
Qualified persons from field of Agriculture would be able to brief the farmers on higher productivity (yield) and benefits of HDPE Agrishade Nets
Dealers who display the plastic products related to agriculture such as pipes, mulch film to add one more product in their shops
Promote HDPE Agrishade Nets amongst existing woven sack manufacturers
Distribution pattern � Commission Agents, Marketing persons qualified in field of Agriculture, Dealers of plastic products related to agriculture leading in achieving a higher market penetration
Business leading to :
- Net profitability to the farmers
- Net profitability to the entrepreneurs
Tieups between the two bringing in more business leading to an economic growth of our country
One farmer, a leader uses these plastic products, followers too would use these products
Initiate the business with one farmer, one village would result in achieving a higher market penetration
Conclusion
Multifarious/numerous applications with an additional investment on ancillary equipments such as knitting machines would help entrepreneurs in increasing the net profitability with a higher product mix. An existing processor of HDPE Woven sacks can manufacture HDPE Agrishade nets on his existing tape extruder with an additional investment in knitting machines.
(Ms Poorvi C. Desai, Sr. Manager, Business Development - Polymers, Reliance Industries Limited)
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