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Bamboo Straw

Bamboo straws are a great alternative to plastic straws! They are sustainable and eco friendly. They can be used for one or multiple drinks before being discarded. In metro cities, average per person uses over 150 straws made out of unsustainable material like plastic each year, but most of these plastic-straws end up in landfills, Bamboo straws are much more durable than plastic ones and are washable and reusable. It is found that about 1 billion plastic straws are used every day worldwide. The government in various nations impose restrictions on plastic straws. Bars and restaurants around the world are finding new ways to replace plastic straws that have become a necessary part of dining, whether a fast-food outlet or a restaurant. Bamboo straws provide a sustainable alternative to the plastic straws. These factors are expected to drive the growth of global bamboo straws market during the next decade. The growing inclination of people towards the use of environment-friendly products is expected to drive the growth of bamboo straws.

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Capacity of the Plant/Unit (at 100% capacity utilization)

N.A.

Year wise capacity utilization

Year

70%

Year

80%

Year

90%

Year

100%

Year

100%

Raw Materials Required

entreprenuearship

Bamboo (B.Pallida or M.Baccifera)
Cleaning metal Brush
Salt and Neem for Natural Treatment

Final Product

Bamboo Straw

Infrastructure Required

Shed

Plant & Machinery Required

Hand saws
Shaving knives
Round rasp File (set) Bench Vice
Electric cross-cutter/chop saw
Electric drill kit
Angle Grinder/belt sander
Laser engraving machine (optional)

Emploment Generation:

10 Hired Labour, 8 Semiskilled,

2 Unskilled

Project Cost (subject to respective DPR) In Lakhs

Land (own)	00.00
Civil works and Buildings (500 sqft @200/sqft)	1.00
Machinery	4.83
Others	0.30
Sub-total (A)	6.13
Total Working Capital Req (B)	2.14
Total Project Cost	8.27

Means of Finance In Lakhs

	Amount	Percentage
TERM LOAN (75% of A)	4.60	56%
WORKING CAPITAL (60% of B)	1.28	15%
Total Loan	5.88	71%
Equity	2.39	29%
Total Funds Required	8.27	100%

Financial Benchmarks

	Year	Year	Year	Year
Target Revenue	25	29	32	36
Break Even Point	67.39%	52.32%	40.64%	32.46%
DSCR including Principal Repayment	3.09	2.15	2.84	3.68

Basic Assumptions

Production of Bamboo Straw	8 semi-skilled will on average be able to produce 300 nos of finished bamboo straws per worker per day, working 300 days in a year. Price of each Straw is assumed as Rs 5 considering laser engraving done and inclusive of metal brush. If laser engraving is not opted for, the straws may be sold at Rs3.50 per piece. Unskilled labour will help in manually cross-cut the bamboo, treatment and sorting the straws
Machinery	This is a profile of a household level enterprise with 10 hired labour.
Interest rate assumed	11%
Repayment period	5 Years with 3 months moratorium

Others

Training Institutes	CBTC Meghalaya, BCDI Agartala, IIE Guwahati, TRIBAC
Whether the service is in the Negative list under NEIDS and MSME?	No

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