Date:21/04/2005 URL: http://www.thehindu.com/2005/04/21/stories/2005042104621900.htm

Business

Coir-on to set up fibre unit in Sri Lanka

M. Gunasekaran

Planning to expand network

POLLACHI: The recent scarcity for coir fibre in Pollachi and the prevailing international reputation for the Sri Lankan coir pushed the Pollachi-based Coir-on foam products to set up a fibre-extraction unit in Sri Lanka, said C. M. Hariraj, its managing partner.

The factory will commence operations by June-end, and Rs. 1.50 crores will be the investment.

The unit will produce five tonnes of fibre a day and four tonnes of curled coir.

Speaking to The Hindu, Mr. Hariraj said, the international market was picking up for eco-friendly natural products. Being an international hub, Colombo, was attracting European buyers with its quality products.

The coir industry in the coconut town of Pollachi is facing an unprecedented scarcity for raw material due to the successive years of draught and mite attack that brought down the coconut yield.

The international market is booming and lot of enquiries are flowing for coir fibre and because of the brand image and container advantage Colombo wooing the foreign buyers.

According to Mr. Hariraj, buyers prefer Colombo than South Indian produce and he wants to tap the potential.

"We will export coir fibre from there and we will import the fibre for Coir-on products depending upon the situation," he said.

Coir-on, has established its market in south India with a 10 per cent share in the mattress segment.

The company is planning to expand its network this fiscal, says Mr. Hariraj.

In an attempt to meet the growing demand, Coir-on has expanded its manufacturing facilities of rubberised coir to six tonnes a day and it has a separate fibre twisting plant and a desiccated coconut plant. Its last year turnover was Rs. 12 crores.