The Hindu : A novel farmer-friendly venture

Online edition of India's National Newspaper
Tuesday, Apr 01, 2003

Southern States

Southern States - Kerala

A novel farmer-friendly venture

By K.P. Pushparaj

KASARAGOD MARCH 31. Even as the investment offers by Non-Resident Indians (NRIs) during the recent Global Investor Meet yet to materialise, a humble endeavour by a few NRIs hailing from this part of the State has started showing positive results -- in a slow but steady way.

Not many of the 1,000-odd NRIs -- who made their small but valuable stake in the multi-lakh project -- might not even in their best dreams have imagined a success story for the endeavour in such a short period. But it is indeed a success story for the Karshaka Bandhu Agri-Tech India Limited.

Launched with a capital of Rs.55 lakhs, more than 80 per cent of which came from the NRIs as equity share(s) of Rs.100 each, the Karshaka Bandhu at Kolathur, near here, was established two years ago -- in March, 2001. The shareholders of the company include about 1,500 people from the district, though their contribution in terms of money compared to the NRIs is much less.

The `Triveni coconut oil' by the Karshaka Bandhu, sold at Rs.72 a litre, was well received by the oil market. However, the 12-member director board was not ready to confine itself to coconut oil making alone.

With the know-how transcribed by the CPCRI and the Coconut Development Board, the Karshaka Bandhu ventured into the making of sweet coconut chips from coconut kernel and vinegar from coconut water.

``Though we suffered a setback in the first year registering a net loss of Rs. 6 lakhs, we are headed for a profit of about Rs. 5 lakhs this year and soon will be declaring dividends to our shareholders,'' says its managing director, K.V. Bhaskaran.

The sweet chip made from coconut kernel through the Osmosis process is a delicious and variety product. The vinegar made from the nutritious-rich coconut water would capture the vinegar market flooded with synthetic vinegars. The price of a 50-gm pack of sweet coconut chips is Rs.10 and that of one litre vinegar is Rs.25.

The Karshaka Bandhu has an ambitious plan to diversify into cattle feed manufacturing and coir fibre using husk, the raw materials for both are available from within. The director board wants the Rs. one-crore project to be completed in a year.

The firm proposes to raise the funds for the project from a second subscription of equity shares, once again from NRIs. The second issue from the Pravasi-Initiative offers 50 to 1,000 equity shares of Rs.100 each. The company also aims at a phenomenal growth in profits in the coming years.

The eco-friendly unit plans to lend a helping hand to coconut growers. The unit will purchase coconut from farmers, who will have an equity stake in the firm, at a higher price than that of the market price. The company procures coconut at a price ranging from Rs.11 to Rs.13 per kg of good quality coconut.

Besides oil, by-products and value-added products from coconut, the agro industrial unit is in the process of making pickles of different varieties. According to Mr. Bhaskaran, more than acting as a preservative, the self-made vinegar is expected to make the pickles, viz. lime, mango and tender mango, tastier.

Printer friendly page
Send this article to Friends by E-Mail

Southern States

Stories in this Section

Plea on hartals referred to full Bench

HC order on abkari licence for women

Pesticides spell doom for bird life in Wayanad

Federal Bank employees strike work

LDF march passes off peacefully

ESI health care for construction workers likely

Traders' hartal total

A novel farmer-friendly venture