Coir Board eyes tie-ups with KVIC, retail chains

Aiming to double its sales in the domestic market, the Coir Board is looking at tie-ups with the Khadi and Village Industries Commission (KVIC) as well as big retail chains.

Coir Board has about 30 showrooms and is mulling over partnering with KVIC, which has about 7000 outlets across the country, as well as the National Small Industries Corporation to retail products and expand presence in the country.

"We are looking at doubling our domestic sales in the current financial year from the Rs 1000 crore we achieved last year. KVIC's large network would help us grow our reach as well as increase revenue from the domestic market," Coir Board Chairman A C Jose said. He was speaking at the inauguration of the Coir Board's Display and Information Centre here.

Inaugurated by Micro, Small and Medium Enterprises Minister Mahabir Prasad, the centre would display coir and handicraft products and provide information about exports, product catalogue and schemes.

He said the Board is in talks with big retail chains and working out the modalities to market its range of products through the mushrooming outlets.

Jose said competition from foreign synthetic goods as well as lack of investment in small scale industries was hampering growth of the coir industry in the domestic market.

"There have not been large scale investments in the sector. Besides, there needs to be more participation from private players in the sector," he said.

Jose, however, expressed satisfaction at the measures being implemented by the government to promote the sector, adding that Rs 86 crore have been sanctioned for the Board for 2007-08.

"We have also submitted a Rs 1644 crore proposal for development of the sector in the 11th Five year period. While the Ministry of Micro, Small and Medium Enterprises has finalised the proposal, we are awaiting approval of the Planning Commission," he said.

The proposal envisages providing subsidies to weavers, undertaking modernisation programmes and enhancing exports. The Coir Board is targeting exports of Rs 700 crore this financial year as against Rs 605 crore achieved last year.

Products are exported mainly to Amsterdam and European countries and the board is eyeing a large market in Gulf countries.

As part of efforts to develop the coir industry, the India International Coir Festival would be organised in Kerala between December 7 and 11, which would see participation from about 100 foreign as well as domestic buyers.