SME innovates to tide over crisis

SME innovates to tide over crisis

Coir product manufacturers in Kerala are passing through troubled times. Three factors have made their survival an issue. An appreciating rupee, the recession in the US and the effects of its spillover to major European markets. The first blow, almost two years ago, came in the form of non-acceptance of jute products. Most of the coir product exporters in the Alappuzha region had been banking on jute products to keep profitability going. "Jute suddenly went out of fashion and poly propylene components took centre stage. This led to the ruining of business for many," says Rishi Charankattu, owner of Leo Tex, a coir and jute products manufacturer and exporter. What then is the remedy to tide over the problems ? Innovation, says Rishi. He adds: "The players in the segment, both small and medium, need to look at diversification to stay afloat in these times of recession. So we have lined up a product that is expected to see us through." Leo Tex is planning a foray into the manufacture of aromatic coir mats. These will combine the qualities of coir with the ayurvedic effects of cuscus grass, locally known as ramacham. "By adding cuscus grass, we expect to add healing value to the traditional coir mats," he says. Cuscus grass is an important ingredient in ayurvedic healthcare and is well-known as a natural cooling agent. The company plans to bring in the expertise of yarn makers to combine the qualities of both the ingredients. "The ayurvedic mats with the coir and cuscus grass is in a 70:30 ratio. The products, which would be natural coolers and healing agents, would also emit an exotic aroma because of the cuscus grass," he adds. Rishi has already taken samples of the product to many international expo and hopes to secure orders from warm regions like West Asia, the hot and humid southern regions of the US such as San Fransisco and in the domestic market as well. The pricing and the investment aspects are still not decided as the company feels that the market needs be convinced of the product first. With Leo Tex leading the innovation charge, it is expected that other players in Alappuzha and the rest of Kerala also innovate to tide over the crisis.