International Journal of Horticulture 2015, Vol.5, No.11, 1
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annum which is a considerable amount of income to
the match wood industry and hence one could enter
into the business with confidence by arranging the
contract agreement with the farmer by promoting farm
forestry and agroforestry schemes in the farm front.
1.7.
Break – Even Analysis for Match Splints
Industry
In an industry, the analysis of break even quantity
becomes very much important to know how much
output to be produced in the industry to break even the
no profit and no loss situation. In this respect, the
details of break even quantity are analyzed using the
formula for that purpose and the results are analyzed
and the details are presented in Table 7.
Table 7 revealed that the total quantity of match
splints produced by the match splints industry is
arrived at 421.600 tonnes per annum. On sale of
match splints at the rate of Rs 41000 per ton, the total
revenue realizable is arrived at Rs 172.85 lakhs. To
produce the match splints of one ton, the company has
to spend Rs 16705. Using the data presented in Table
6, the break even quantity is arrived at 18.578 tonnes.
It revealed that the no profit and no loss situation
could be realized by the match splints industry on
production of 18.578 tonnes per annum. Whereas, the
industry is capable of producing 421.600 tonnes by
which the safety margin to the company is arrived at
403 tonnes. From this one could infer that the
company is running profitably by producing 2160 per
cent higher output over the break even quantity and
keeps running profitably and hence young
Agripreneurs could enter into this venture very boldly.
However, experience makes the man perfect and
capable of learning the in and outs in the business and
hence the Agripreneur who wants to establish such
business venture can gain expertise for one or two
years and then one can enter into this venture so as to
develop the capabilities to address the emerging issues
in the business.
1.8.
Price of Output and Distribution of Match
Splints
The output realized from the production process is
Match Splints; Fuel Wood; Bark and Wood Residues.
All the four products are distributed to the user
agencies on time based on the indents made by the
firms. The details are analyzed and the results are
presented in Table 8.
Table 8 revealed that the match splints is one of the
main output which is mostly demanded in Kovilpatti
and Sivakasi of Southern Tamil Nadu where 90 per
cent of match industries of India is located (Saresh
et.al. 2011) and the cracker industry are mushroomed
could attract large volume of match splints for their
use in their production. Though the match splints are
Table 7 Break Even Analysis for Match Splints Industry
Sl. No
Particulars
Units
Amount (Rs in Lakhs)
1
Quantity of Match Splints Produced and Sold
Tonnes
421.600
2
Revenue from Sale of Match Splints
Rupees
17285600.00
3
Variable Costs involved in Production of Match Splints
Rupees
7043090.00
4
Contribution (2 Minus 3)
Rupees
10242510.00
5
Fixed Cost per Annum
Rupees
0451350.00
6
Price per Ton of Match Splints
Rupees
41000.00
7
Variable Cost Involved in Production of One
Ton of Match Splints
Rupees
16705.00
8
Break – Even Point (TFC Per Annum/ (Price
per Ton of Splints Minus Variable Cost / Ton
Quantity in Tonnes
18.578
Table 8 Price of Output and Distribution of Match Splints Industry
Sl. No
Details of Output
Places of Distribution
Average Price per Kg in Rs
1
Match Splints
Kovilpatti and Sivakasi
41.00 (USD 0.66)
2
Fuel Wood
Coimbatore and Thiruppur
03.00
3
Bark
Annur, Coimbatore District
01.00
4
Wood Residues
Annur, Coimbatore District
01.00
