chapter - iii production and marketing of...

Chapter - III

PRODUCTION AND MARKETING OF FISHNETS INKANNIYAKUMARI DISTRICT

I. PRODUCTION OF FISHNETS

3.1 Introduction

3.2 Invention of new raw materials for the production of nylon

fishnet

3.3 Basic types of synthetic fibres

3.4 The reasons for shifting from cotton fishnet to themanufacture of nylon fishnets.

3.5 Details of active fishnet industry in kanniyakumari district

3.6 A short profile of the early entrepreneurs of the fishnet

industry3.7 The main financial institutions which provide financial

assistance to fishnet industry

3.8 District industries centre and fishnet industry

3.9 The growth of fishnet factories in kanniyakumari district3.10 Ownership status of fishnet industry3.11 Manufacturing process of nylon monofilament3.12 Nylon yarn making industries3.13 Manufacturing process of fishnet3.14 Types of nets

H. MARKETING OF FISHNETS

IntroductionMarketing of fishnetsPrice setting of fishnetsExtent of marketingSales method of fishnetsAnalysis of growth rate of production and

fishnets3.21 Summary

3.153.163.173.183.193.20

marketing of

80

I. PRODUCTION OF FISHNET

3.1 INTRODUCTION

Fishnet industry is directly connected with fishing industry.

The rich marine profile, general literacy, availability of

entrepreneurs and climate of the district are very much conducive

to the thriving of fishnet industry in Kanniyakumari district. This

chapter attempts to discuss the production and marketing of

fishnets and also the growth rateof the fishnet industry.

3.2 INVENTION OF NEW RAW MATERIALS FOR NYLONFISHNET

Before the advent of manufacture of synthetic fibres, the

manufacturers of fishnet in Kanniyakumari district were using

only cotton threads for fishnet. But the invention of synthetic

fibres revolutionised certain industries like textile and fishnet

industry in a spectacular way.

The fishnet manufacturers of Kanniyakumari district did not

immediately switch over to synthetic yarn from cotton yarn to

manufacture fishnets. Only in 1975, the first fishnet making

industry in Kanniyakumari district was started by Mr. Abdul

Majeed of Manavalakurichi. With great entrepreneurial skill and

foresight he imported a net making machine from M/s. Amitha

81

Company, Japan and started to manufacture nylon fishnets.'

Until then the fisherfolks were making fishnets by using number

10 cotton threads. Now there is almost a 99% shift from the use

of cotton thread to nylon yarn (synthetic fibre) for manufacturing

fishnet in the district.

As the nylon fishnet has many practical advantages over the

cotton thread fishnet, the fishnet manufacturers of

Kanniyakumari district, with a visionary mind, started to

manufacture nylon fishnets with the help of machinery.

In order to understand the practical, financial and durable

advantages of nylon fishnets over cotton thread fishnets, it is quite

necessary to understand the process of development of synthetic

fibres and the classification and forms of synthetic fibres.

3.2.1. Invention of synthetic fibre

Synthetic is a scientific and technical term for a chemical

process, by which chemical elements or simple basic substances

are combined to build complicated and completely new fabrics

with new properties. Man-made fibres made of such simple

substances as phenol benzene, actylene, purssic acid and chlorine

are therefore called synthetic fibres, compared with other artificial

fibres made of complicated natural products such as cellulose and

Personal Interview with Mr. Abdul Majeed

82

protein which have only to be transformed into fibres (cellulose

rayon, cellulose wool protein rayon).2

3.2.2 Manufacture of synthetic fibres

The development of synthetic fibres was started around

1920, by the investigations of H. Staudinger the Noble prize

winner for Chemistry in 1953. He found that all fibre materials

consisting of long chain molecules, in which a great number of

equal simple units are linked together. It is this very structure

which gives the fibrous material the properties required for a

textile fibre. Based on this knowledge, a great deal of additional

research has been carried out during the last 50 years, first in the

USA, and then in Germany, to create such fibre-forming

macromolecules, a term much used in Chemistry, which was

introduced by Staudinger. At present the most important

countries that manufacture synthetic fibres in the order of their

output are the USA, Japan, the Federal Republic of Germany, the

USSR, Great Britain, Italy and France.

The following are the most important steps for

manufacturing synthetic fibres:

2 Gerhard Must - Netting Materials for Jishing gear, London, 1982 p. 6

Ibid p. 7

83

First Step

At the beginning there is a simple raw material from a

natural product such as oil, coal, lime and common salt. In the

case of nylon, the raw material is phenol, made of coal tar.

Second step

From the raw material, the basic substances, the monomers

needed to build up the macro-monocles, are obtained by a number

of chemical processes. For the production of nylon, two basic

substances are needed, namely adipic acid and hexamethylene

diamine which are combined with polyamide salt.

Third Step

The third process is the polymerization or polycondensation,

i.e. the forming of the chain of macromolecules or polymers. This

process consists mainly of heating in an autoclave under high

pressure, by which, in the case of nylon, a great number of

hexame thylenediamine and adipic acid and molecules are

alternatively combined together in such a manner that, in the end,

long linear polymers are formed. In the nylon polymers, the two

components are linked together by a special atomic grouping

known as an amido group. For this reason, polymers of this

particular type are called polyamides. The polyamide polymer

84

leaves the autoclave in the form of ribbons which are cut into

chips.

Fourth Step

Now the substance po1ymide (nylon) must be converted into

fibre by melting and spinning. For this purpose the polyamide

chips are melted and threads are formed squirting the molten

substance through spinnerets. The viscous threads become stiff

in air, but they are not yet suitable for use in yarns. They are still

extremely ductile and have comparatively low tensile strength.

Final Step

The manufacturing of filaments is finished by drawing. The

threads are stretched three to five times of their original length, a

process by which they obtain their final fineness, diameter, tensile

strength and extensibility.4

It is inevitable to have some basic understanding of the

chemical classification of synthetic fibres in order to understand

the fishnet industry.

Ibid pp. 6-10.

85

3.2.3 Chemical Classification of Synthetic Fibres which areUsed for fishing Nets

Name Symbol

Polyamide PA

Polyester PIES

Polyethylene PE

Polypropylene PP

Polyvinyl chloride PVC

Polyvinylidene chloride PVD

Polyvinyl alcohol PVAA5

The technical terms indicate the various fibre-forming

substances of the different groups.

3.2.3.1 Polyamide (PA)

Polyamide (PA) fibres are manufactured in several types

each with varied chemical components. Each type is marked by a

figure which is added to the generic name and it refers to the

number of carbon atoms in the components (monomers). The most

important types are PA6.6 and PA6.

Polyamide 6.6 has two components namely, hexamethylene

diamine and adipic acid, each containing six carbon atoms. The

5 lbid,p. 10

86

fibre was developed in 1935 by W. H. Carothers (USA), in the

Chemistry of Macro, Molecules and was called nylon.

Polyamide 6 was first known under the trade name Perlon.

It was built up from one monomer called caprolactam, which

contains six carbon atoms, and therefore came to be known as

PA6. It was developed during the year 1937-38 by a chemist

named P. Seblack (Germany). At present there are more

producers of PA6 than PA 6.6 in the world.

From the fisheries point of view, there is no difference

between these two PA types, which have the same mechanical

properties. Netting yarns made of PA 6.6 or PA6, manufactured in

exactly the same manner, have the same suitability for fishing

nets.

3.2.3.2 Polyester (PES)

Polyester fibre was developed by J.R. Whinfield and

J.T. Dickson (UK) in 1940-41. It is formed by polycondensation of

the terephthalic acid, and the alcohol ethylene glycol. Chemical

compounds of an acid and an alcohol are known as 'esters', from

which the term polyester is given to this fibre group. The first

trade mark of this fibre was "Terylene".

87

3.2.3.3 Polythylenc (PE)

Polythylene (PE) fibres used in fishing gear are produced by

a method developed by Ziegler (Germany) in the early 1950s.

Contrary to an old technique of polymerization (UK), which

required a very high pressure of 1000 atom or more, the new

method works with low pressure, and with organometal catalysts

like aluminium alkyl. The monomer ethylene, the basic substance

of polyethylene, is normally obtained by cracking petroleum. The

same method is applied to propylene, the basic substance of

polypropylene for producing polypropylene.

3.2.3.4 Polypropylene (PP)

Polypropylene (PP) fibres were developed by Natta (Italy) in

1954, and were first called under the trade name "Merakion".

Polyethylene and polypropylene are often collectively called

polylefines. Here, they are distinguished as two separate groups

because of their different properties, with regard to fishing nets.

3.2.3.5 Polyvinyl chloride (PVC)

Polyvinyl chloride (PVC) was developed by F. Matte and

H. Hubert (Germany) from the monomer vinyl chloride. It was the

first synthetic fibre to be produced on an industrial scale (1934).

It was the first synthetic material to be used for fishing gear under

88

the trade name 'Pece' 19, and thus, the first to demonstrate the

immense practical advantage of rot-proofness.

3.2.3.6 Polyvinylidene chloride (PVD)

Polyvinylidene chloride (PVD) was developed in 1939 in the

USA. It was produced by co-polymerizing a mixture of vinylidene

chloride (at least 80%) and a second component, like Vinyl

chloride. In this composition, it is known as "Saran". Another

group of chlorofibres obtained by co-polymerization is covered by

the name 'Vinyon' (USA).

3.2.3.7 Polyvinyl alcohol (PVA)

Polyvinyl alcohol (PVA) fibre was the result of the research

by W.O. Hermann and W. Haehnel (1931). These fibres have been

greatly improved in Japan since 1938. The type of PVA fibre made

and used for fishing nets in Japan is made insoluble in water by

different levels of actalization, and now has the symbol PVA (eg.

Kurlon) 6

PVC, PVD and PVAA are less widely spread in fisheries over

the world than the other groups. They are mainly produced and

used for fishing nets in Japan.

6 lbid,pp. 10-11

89

3.3 BASIC TYPES OF SYNTHETIC FIBRES

Continuous filaments (Multifilaments)

Staple fibres

Monofilaments

Split fibres.7

These are the basic forms of synthetic fibres that are used

for the production of fishnets. To have some basic idea of these

basic forms of synthetic fibres, would be of immense help in

understanding the fishnet industry.

3.3.1 Continuous filaments (Multifilament yarn)

These are fibres of infinite length. They have silk-like

appearance and are produced in various degrees of fitness,

generally much thinner than 0.05 mm diameter. The first type of

this filament of length1000 meters weighed less than 0.2 gram,

and was even thinner than natural silk. Materials of fishing net

are usually made of filaments, 1000 meters of which weigh

between 0.6 grams and 2 grams. A quantity of continuous

filament gathered up with or without twist, is termed filament

yarn. In ISO standards it is frequently described as multifilament.

All filaments run the whole length of the yarn which at a point

contains exactly the same number of filaments in the cross

section. A special type of continuous filaments is the textured

lb Id, p. 16

90

continuous filaments (multifilaments) which are looped and targed

before twisting, and have a good knot stability. This type of fibre

is not generally used in fishing gear.8

3.3.2 Staple fibre

These are discontinuous fibres usually prepared by cutting

filaments into lengths suitable for the yarn spinning process.

Their fineness is similar to that of continuous filaments, and their

length generally ranges from 40 mm to 120 mm or more. Staple

fibres are bound by twisting to form spun yarn. It is only by the

pressure caused and twisting that short fibres are held together

and form a continuous strand, called a single yarn. Netting yarns,

made of staple fibre, have a rough surface, owing to the numerous

loose ends of fibres sticking out from the twine. Spun staple fibre

yarns have a lower tensile strength and higher extensibility than

continuous filament yarns made of the same sort of synthetic fibre

material .9

3.3.3 MonofilamentS

Monofilament means a single filament, which is strong

enough to function alone as a yarn, without having to undergo

further processing. This is the basic difference between the fine

continuous filaments and staple fibres. Especially transparent PA

8 Ibid, p. 169 lbid,pp. 16-17

91

monofilaments are used as single filaments for fine gilinets. In

practice, monofilament is a general term, covering all coarse

filaments with larger diameter and stiffness and a wiry character

(synthetic wires). They mostly have a circular cross-section with

diameter between 0.1mm or more, but monofilaments with oval or

flat cross-section are also manufactured with diameter varying

from 0.17 to 0.35 mm. A number of monofilaments are twisted to

form a yarn. There is no special International Standard term for

this type of yarn. 10

3.3.4 Split fibres

Split fibres originate from oriented plastic tapes (films) which

are stated during manufacture by such a high draw-ratio that the

tapes split technically, when twisted under tension. Yarn made of

these fibrillating tapes contains split fibres of irregular fineness,

which in some respects are similar to natural bast or hard fibres.

Split fibres may also be obtained by mechanically fibrillating film

tapes directly after extrusion.11

3.3.5 Advantages of nylon fishnet over cotton fishnet

i) Water absorption capacity of nylon is far less than of other

fibres: Nylon: 67%, Silk: 18.7 1/o Manila Hemp: 30.4%,

Cotton: 43.9%.

Ibid, pp. 17-18Ibid, p. 18

92

ii) The resistance to knot is the main characteristic of the nylon

nets. This dominating property prevents the loss of strength

while in use.

iii) The durability of nylon nets is greater and longer than

cotton and hemp nets.

iv) Nylon nets do not require drying after use.

V) Nylon nets are lighter than any other fibre nets of the same

size, which makes handling easy.

vi) Nylon nets absorb water far less than any other fibre which

makes handling of nets very easy even in deep water.

vii) Nylon nets can be dyed to give any desired colour. It is also

suitable for tar-dyeing so that the strength of the net may be

increased to at least about 20%. It is to be noted that while

dyeing the nylon nets, it is necessary to see that it is not

boiled, and that the temperature does not exceed 60°C.'2

In view of the comparative advantages of nylon nets over

cotton and hemp nets, there was good demand for nylon fishnets.

So the entrepreneurs of Kanniyakumari district started many

mechanised fishnet industries, with nylon yarn as the main raw

material component of the fishnets.

2 Small Industry Scheme No. 59, Nylon Fishing Nets, Development Commissioner(Small Scale Industry) Ministry of Commerce and Industry, Govt. of India, New Dclhi,Small Scale Industry Scheme No. 159. Nylon Fishing Nets, New Delhi, 1960. pp. 283.

93

3.4 THE REASONS FOR SHIFTING FROM COTTON FISHNETTO NYLON FISHNETS

A most of the fisherfolk are very poor and illiterate and fish

in a very primitive manner using small frail boats, Kattamarams

and vallams. Fighting against wind and tide, they are not able to

go beyond a narrow distance of about 5-10 miles into the sea. If

properly equipped, they could reach down to greater depths and

distance of at least 100 fathom line which lies at 30-50 miles from

the coast. It is estimated that the traditional fishermen were able

to tap only 10% of the entire fishable marine area. So naturally

mechanisation of the craft seems to be the solution for this

problem. The adoption of mechanised boats for fishing and

tapping of an additional 90% of fishable marine area calls for

larger investment in fishing gear and fishing accessories including

nylon fishnets. 13

Fishnet production has been one of the oldest cottage

industries in Kanniyakumari district for many centuries. There

had been many stages in the history of fishnet production. Before

the invention of synthetic fibres, the fishermen of the district were

using number 10 cotton yarn to manufacture fishnets. It was a

thriving cottage industry and it fully met the local demand of the

13 Development Commissioner (Small Scale Industries) Ministry of Commerce andIndustry, Govt. of India, New Delhi, 1960, p. 1.

94

fishermen. 14 But in tune with the changing technological

development, the fishnet industry in the district has completely

changed into a fully mechanised one.

As the making of fishnets by hand could not meet the

demands of the fishermen, it became necessary to manufacture

fishnets in a mechanished way. Fishnet industry switched over

from cotton yarn to nylon yarn and thus the fishing industry

gradually mechanished.

Moreover, the advantages of nylon over cotton led the local

entrepreneurs to start mechanised fishnet factories where nylon is

used as the raw material for production.

3.5 DETAILS OF ACTIVE UNITS IN KANNIYAKUMARIDISTRICT

There are 109 registered active fishnet industrial units in

Kanniyakumari District. In Agasteeswaram taluk, there are 84 units,

Thovalai taluk has 6, Kalkulam taluk 7 and Vilavancode 11.15

4 Lion. S. Kumaresan, Dinanialar, Thozhilrnalar, Thirunelveli dt. 3-8-1998.15 Data collected from the District Industries Centre

95

TABLE 3.1

The Talukwise Details of Fishnet Industry in KanniyakumariDistrict

Ta I u k

No. of units Percentage

Agasteeswaram 84

77.07

Thovalai

7

6.42

Kalkulam 7

6.42

Vilavancode 11

10.09

109

100%

Agasteeswaram taluk is bordered by the seas on three sides,

and it is blessed with a good and conducive climate for the

production of fishnets. Land and labour comparatively cheaper.

As Agasteeswaram taluk is an industrially backward area, the

government gives 15% financial subsidy to start industries in this

area. So a majority of the fishnet units are situated in

Agasteeswaram taluk. Naturally the entrepreneurs have started

many factories in this district.

3.6 A SHORT PROFILE OF THE EARLY ENTREPRENEURS OFTHE FISHNET INDUSTRY

The pioneer entrepreneur who launched nylon fishnet

production in Kanniyakumari district was Mr. Haji Abdul Majeed

of Manavalakurichi. As a shrewd entrepreneur, he imported an

electronic fishnet manufacturing machine from M/s. Amitech

96

Company of Japan, and started nylon fishnet production in the

district in the year 1975. The second mechanised nylon fishnet

unit was started by Mr.M.C. Balan, Ex. M.P. The setting up of the

new mechanised fishnet industry caused a lot of unemployment

among those labourers who were making cotton fishnet manually.

So in the initial stages, there was some stiff protest against the

launching of mechanised fishnet factories in the district. In course

of time, the unrest and protest vanished.

Now Mr.M.C. Balan, Ex. M.P., Mr. Nanchil Vincent, Ex. M.P.,

Mr. Pon Vijayaragavan, Ex. M.L.A., Mr. T. Thanga Raj, Mr. Valli

Nayagam, Mr. Shajahan, Mr. S.M. Abdul Majeed, Mr. S. Sahul

Hameed, Mr. Rajagopalan, Mr. Staneley, Mr. Kumaresan, Mr.

Palavender and Mr. Pon Robertsingh are some of the leading

entrepreneurs of the fishnet industry in the district. 16

3.7. THE MAIN FINANCIAL INSTITUTIONS WHICH PROVIDEMONETARY ASSISTANCE TO FISHNET INDUSTRY

To provide financial assistance to the needy entrepreneurs,

the government has set up a number of financial institutions

besides commercial banks. They can be brought under the

following two main categories.

i) National level financial institutions

ii) State level financial institutions

6 Oral Information collected from Mr. T. Thangaraj, Fishnet Industry Owner.

97

The national level financial institutions which provide

financial assistance to the entrepreneurs are:

a. The Industrial Financial Corporation of India,

h. The Industrial Credit and Investment Corporation of India,

C. The Industrial Development Bank of India,

d. The Industrial Reconstruction Bank of India,

e. The EXIM Bank of India,

f. The LIC and GIC,

g. The Unit Trust of India,

h. The National Small Industries Corporation, and

i. The Small Industries Development Bank of India.

State Level Financial Institutions

The state level financial institutions are divided into two

main categories:

i) State Finance Corporations

ii) State Industrial and Investment Corporations. 17

3.7.1 Commercial Banks

Apart from the government financial institutions,

commercial banks also play a vital role in meeting the financial

requirements of the entrepreneurs for their enterprises. The

commercial banks on receipt of the loan application make a

preliminary scrutiny of the project proposal and analyse whether it

has an acceptable purpose and comes in tune with the

government policy. The bank considers the financial feasibility,

7 Primary Sources

98

technical feasibility, economic feasibility and management

competence of the busines unit and sanctions the loan in

accordance with the lending policy of the bank.

3.7.2 Financial assistance to Fishnet industry

As it is not possible and wise on the part of entrepreneurs of

fishnet units of Kanniyakumari District to come up with all the

fixed capital and the working capital, they have wisely availed of

the loans provided by the government financial institutions and

commercial banks.

The following financial institutions and commercial banks

have advanced loans to the entrepreneurs of fishnet units in

Kanniyakumari district.

i) The State Bank of India,

The State Bank of Travancore,

The Land Development Bank,

iv) The Tamil Nadu Industrial Investment Corporation of

India, and

V) The Tamil Nadu Mercantile Bank. 18

A sample survey of 50 Fishnet Industrial units shows the

following facts.

Information provided by the bank managers

99

TABLE 3.2

Details of Loan taken by 50 Fishnet Unitsfrom Financial Institutions

SI. . . . No. of.

Financial Institution PercentageNo. Units

1. State Bank of India 8 16

2Tamil Nadu Industrial Investment Corporation 18 36of India

3 Tamil Nadu Mercantile Bank 5 10

4 SBI & TIIC 12 24

5 Co-operative Bank & TIIC 1 2

6 SBI & Co-operative Bank (LOB) 2 4

7 SBI & TIIC and DIG 21 2

8 Others 3 6

50 100

From the Table 3.2 it is seen that a good number of owners

of the fishnet Industry gets loans from the TIIC and SBI and the

TMB occupies second and third place respectively in financing the

fishnet industry.

The Tamil Nadu Industrial Investment Corporation (TIIC)

has so far granted loans to the extent of Rs. 8 Crores to 64 fishnet

industrial units at the interest rate of 15% and the loan repayment

period is 7 years.19

Oral Information provided by the TIIC, Nagercoil

3.8 DISTRICT INDUSTRIES CENTRE AND FISHNET INDUSTRY

As per the new industrial policy, it has been decided to take

away the focal point for development of small scale industries and

cottage industries from big cities and state capitals to the district

headquarters. For this purpose a new organisation for helping the

rural entrepreneurs has been estabilished in the district

headquarters and named as the District Industries Centre.

3.8.1 The Functions of the District Industries Centre

i) To survey the existing, traditional and new industries, the

availability of raw materials and human resources, to

identify schemes and give a market forecast for different

items and to prepare sample techno-economic feasibility

reports and to offer investment advice to entrepreneurs.

To assess the requirement of machinery and equipment

for various types of small scale, tiny and village

industries, to assess sources of availability of machinery

and equipment for different industries and to advise

entrepreneurs to co-ordinate with research

institutions regarding research and development and to

arrange machinery on hire-purchase basis.

ill) To arrange training courses for the entrepreneurs of small

and tiny units in link with the Small Industries Services

Institute (SISI) and other institutes to keep them abreast

of research and development in selected product lines and

quality control methods.

iv) To ascertain raw material requirements of various units,

their sources and prices and to arrange bulk purchases of

raw materials and their distribution to the entrepreneurs.

v) To organise marketing outlets to lease with government

procurement agencies, convey market intelligence to the

entrepreneurs, organise market surveys and market

development programmes.

vi) To give particular attention to the development of Khadi

and Village Industries and other cottage industries, to

have liaison with the State Khadi Board, to organise rural

artisans programme of training.20

The District Industries Centre is a centrally-sponsored

scheme of the Government of India, implemented by the state

government. The main responsibility of implementing the scheme

and making it successful rest upon the state government, as all

the functionaries in the DIC would work under the control and

supervision of the state government.2'

There are two industrial estates in Kanniyakumari district,

one at KappukadU and another at Konam. The industrial estate

was established at Kappukadu in 1959 and that at Konam in

1963. The establishment of the District Industries Centre at

Konam on 1, August 1978 and the launching of the office of the

20 Gazetteer of India pp. 1112-111321 Ibid, p. 1115

102

Tamil Nadu Industrial Investment Corporation Ltd. (TIIC) at.

Nagercoil, have helped the progress and development of the fishnet

industry in the district in a tangible way.

3.8.2 Location of Fishnet Industry

In spite of all its ups and downs, fishnet industry is one of

the thriving and upcoming industries in Kanniyakumari district.

There are about 109 active factories in the district as per the

registration record of the District Industries Centre and a majority

of these units are situated within 7 km. from the sea coast. More

than 50 per cent of the units are located at Konam and

AnanthanadarkUdy. These places are very close to Nagercoil.

3.9 THE GROWTH OF FISHNET FACTORIES IN KANNIYAKUMARIDISTRICT

The first nylon fishnet factory in Kanniyakumari District was

started in the year 1975, by Mr. Abdul Majeed in Manavalakurichi.

For the next few years, no new fishnet factory came into existence

in this district. But all of a sudden from 1990, due to the

liberalised trade policies of the government, many native

entrepreneurs came forward to start fishnet factories. During the

period from 1990 to 2000, there was a phenomenal growth of

fishnet factories. The process of growth is given in Table 3.3.

103

TABLE 3.3

The Growth of Fishnet Factories in the District

Year of No. of units Cumulative totalcommencement

1975 1 1

1990 1 2

1991 1 3

1992 3

1993 4 7

1994 7 14

1995 28 42

1996 25 67

1997 16 83

1998 11 94

1999 8 102

2000 4 106

2001 3 109

Source: District Industries Centre, Nagercoil.

From the Table3.3, it is understood that during the last

decade of the 20th century there was an unprecedented growth of

fishnet factories, especially during the years 1995, 1996 and 1997.

3.10 OWNERSHIP PATTERN OF FISHNET INDUSTRY

Kanniyakumari district is considered by the government an

industrially backward district, and therefore the fishnet industry

gets 15 per cent government subsidy. Factors like cool and

104

suitable climate, moderate sea breeze, proximity to the District

Industries Centre, good transportation facility, availability of cheap

labour and power supply and availability of land at low cost,

attracted many entrepreneurs to set up fishnet industry in and

around Nagercoil.

TABLE 3.4

The Ownership of Land and Building of Sample Fishnet Industry

Ownership status No. of Respondents Percentage

Own 45 90

Lease 3 6

Rent 2 4

50 100

Source: Primary data

As per the information provided by the 50 respondents,

almost 90% of the entrepreneurs own land and building, and the

rest 10% of the entrepreneurs have rented and leased land and

building for their fishnet industry.

105

o No. of ResporidesFerceritcie

100go

80

70

E0

50

40

30

20

10

0

DIAGRAM 3.1

Percentage of Ownership Statusof Fishnet Industry

Own Lease Rent

3.11 MANUFACTURING PROCESS OF NYLON MONOFILAMENT

The raw material which is used in the manufacturing of

nylon fibres is called caproladam (chips). These caprolactam

chips are purchased by the entrepreneurs from Gujarat and the

relevant liquid is imported from Japan.

The manufacturing process of PA 6.6 fibre (Nylon Fibre) from

the stage of forming the polymer to the final product is explained

in the diagram overleaf.

06

MANUFACTURING PROGRESS OF NYLON YARN

PA 6.6 salt

Policon dens ation

Finished Polymer

Cut into chips

Meg Spinning r

Netting yarn

ISpinneret

1/1

TiCooling air

°H Single yarn

107

Blending, melting, spinning, cooling, stretching, annealing,

oiling, winding and packing are the important stages in the

manufacturing process of Nylon Monofilament. These stages are

explained below.

Blending

Nylon chips (Phenol, made of coal tar) and additive

chemicals or dyestuff are mixed together with the help of the

mixing unit.

Melting

The mixed raw materials are put into the hopper of the

extruder unit and melted in the cylinder section of the extruder.

Spinning

A certain diameter of the monofilament in the extruder is

passed through dyes and nozzle plate.

Cooling

The monofilament is then cooled down at quenching bath

where chilled water is provided by the chilling unit.

Stretching

The monofilament is stretched at 4 units, so as to achieve

the required strength and diameter. Stretching bath is also

required for easy stretching process.

108

Annealing

In one of the stretching baths the stretched monofilament is

dried up.

Oiling

Any one of the fishing oils is used in this process on the

surface of the monofilament, if necessary.

Winding

The monofilament thread is wound on the bobbin prepared

at each spindle of the take-up winder.

Packing

Once the monofilament fibre is wound around the bobbins,

the bobbins are packed inside a cotton box for delivery and

marketing.

109

The size of Monofilament yarn

0.15mm

0.16mm

0. 18mm

0.20mm

0.23mm

0.28mm

0.32mm

0.35mm

0.40mm

0.45mm

0.50mm

Monofilament yarn of the above mentioned sizes are

manufactured in Kanniyakumari district.22

3.12 NYLON YARN MAKING FACTORIES

Both Monofilament and Multifilament Nylon yarns are

manufactured from chips by various yarn making factories

situated in various places in India.

In Kanniyakumari district only Monofilament yarn is

manufactured by the yarn making factories. As the local demand

is met only to some extent from Kanniyakumari district, it is made

available from other districts and states.

22 Data collected from Derik monofilament, Konam, Nagercoil.

sue

TABLE 3.5

The Yarn (Monofilament) Makers in Kanniyakumari District 23

ProductionSI Name of the unit Owner Location Capacity perNo day inky

1 Derik Monofilament Stalin AnanthanadarkUdy 3507

2 Vasantham Monofil M.C. Balan Konam 800

3 Ponjesly Monofilament Pon Robert Singh Vellamadam 900

4 Vin Monofil P. Ltd Nanjil Vincent Mela Peruvilai 750

5 Mercury Filament P. Ltd----[Palavander Manikattipottal 320

As the local production yarn, as seen from the above Table

3.5 is insufficient to meet the local demand fully, the

entrepreneurs of fishnet factories also purchase nylon yarn both

Mono and Multifilament from other places.

TABLE 3.6

Yarn Producers Outside Kanniyakumari District24

23 Information provided by Mr. Stalin, Derik Fishnets24 Information provided by All India Fishnet 0wners Association

Ul

3.12.1 Fishnet production from Synthetic Fibre (Nylon Yarn)

The following are the important nylon yarns used as raw

materials in the fishnet manufacturing industry in Kanniyakumari

district.

i) Polymine twine

ii) Polyethylene (Monofilament twisted twines)

ill) Polypropylene (Monofilament twisted twines)

iv) Synthetic fibre called Teviron

V) Krehalon fibre.

In Kanniyakumari district, both monofilament nylon yarn

and multifilament yarn are used in the manufacture of nylon

fishnets. The nylon yarns of both monofilament and multifilament

are purchased by the fishnet factories both from the district

manufacturers and from outside manufacturers.

3.12.1.1 The Monofilament Nylon yarn

The monofilament nylon yarn of the following sizes is used

for the manufacturing nylon fishnets in the district.

Size (Monofilament nylon yarn)

0.16mm

0.20 mm

0.23 mm

0.28 mm

0.32 mm

0.38 mm

0.40 mm25

25 Ibid

112

3.12.1.2 Multifilament Nylon Yarn

The multifilament nylon yarn of the following sizes and

description are used in the manufacture of nylon fishnets in

Kanniyakumari District.

TABLE 3.7

The Size and Description of the Multifilament Nylon Yarn

Code No ConstructionApproximate breaking

strength

/2 2.2-2.6V21

1 1/3 3.2-3.5

1%1/ 4.2-5.3

2 2/3 5.9-6.8

3 3/3 8.9-10.3

4 4/3 12.8-13.7

5 5/3 14.7-17.1

6 6/3 17.9-20.6

8 8/3 23.6-27.2

3.12.2 Machines used for production of fishnet

Nylon fishnets are manufactured with the help of the

following machines: Baliga, Goa, Nirmala, Amitha and Korea.

113

TABLE 3.8

Name, Value and Production Capacity of VariousFishnet Making Machines

26

Machine used for single knot net

Name of the Value Production Capacity per Depreciation

Machine Rs. day in kg in %

Baliga 18,00,000 10 20

Machines used for double knot net

Average

Name of the Value production Depreciation

Machine in Rs. capacity per day in %in kg

20Baliga (Udipi) 12,00,000 12

20Amita (Japan) 55,00,000 55

0Korea 30,00,000 50

Goa 17,00,000 45

Nirmala 13,00,000 40

In KanniyakUmari district, there are 109 active fishnet

industrial units and they employ both single knot and double knot

machines of various brands. The Baliga machine is the only single

knot machine used in the fishnet industry in KanniyakUmari

District and 5 brands of double knot machines are used. Both

foreign and Indian machines are utilised to manufacture fishnet.

26 Data provided by Manager, Kumarnan Fishnet Industry.

114

The foreign Amita and Korea machines cost higher than the India

made machines. The cost factor is compensated by their high

production capacity and durability. Among the Indian machines,

the Goa machines have the highest production capacity.

TABLE 3.9

The Machine Used in the Sample Fishnet Units 27

SI.No. Name of the machine No. of Machines Percentage

1. Nirmala 87 27.10

2. Baliga (Udipi) 61 19.00

3. Goa 93 28.98

4. Amitech (Japan) 41 12.77

5. Korea 39 12.15

321 100


In the sample fishnet units, 321 machines of various brands

are utilised to manufacture fishnet. As the Indian machines cost

less compared to imported machinery, they are used in large

numbers. Among the Indian machines, the Goa stands first and it

accounts for 29 per cent of the total utilisation.

27 Ibid

115

DIAGRAM 3.2

Percentage of Machines Used in the Production of Fishnets

1 2 %

27%

13%

19%

Ej NirmalaEfl Batiga (Udipi)Eu Goa

Amitech (Japan)El Korea

3.13 MANUFACTURING PROCESS OF FISHNET

In Kanniyakumari district, the fishnet manufacturing units

are actively engaged in manufacturing fishnets of various sizes

and varieties from nylon yarns. The nylon yarn undergoes many

stages during the process of manufacture.

116

Dyeing the nets todesired colour Centrifugal Separator - I se

PROCESS OF MANUFACTURE OF FISHNETS

Process

Twine Nylon orCotton or hemp

Winding of steel BobbinsWooden spools

Knitting of nets(Nylon or cotton hemp)

Necessary Machines

Raw Material Nylon yarn orcotton yarn or hemp yarn

Combined winderType 16-16-iset

Net knitting M./CsType: 6.45-iset

Type : 7.40-4setsType Iset

Type 11.25-iset

Mending the net Hand Operation

Depth stretching(cold only) lengthand heat, stretchingrequired in case ofcotton or hemp ofother fibre nets

In case of Nylonnets heat stretchingFirst: Depthstretching SecondLength Stretching

Heat stretching M/CI. For depth stretching - 1 set2. For length stretching 1-set

117

The process of production of fishnets threading

Feeding of twines into the fishnet manufacturing machine is

called threading. The first bobbin is wound with nylon twines of

required dimensions and the other bobbins are hung on the pegs

of the stand of the machine and placed in such a way as to draw

out the twines from the spools. The twines pass through the warp

holes on the two pieces of narrow panel, which serve as a monitor

to the twines, for regulating them to run parallel to each other

when it is drawn into the machine. The twines should be kept

very tightly without any loosening. The twines are guided by two

coupled uniform supply rolls. The purpose of the arrangement is

to adjust the supply of twines from the stand.

Knot making

The knot making operation is the most vital aspect in the

whole process of net making. The various mechanical parts of the

knot making process are:-

Set of geared upper hooks

The upper hook of the knot making part is made up of steel

and has the following parts:

I. General head, II. Hook and shank, III. Hook, IV. Knot.

118

Lower hook set

A number of lower hooks are fixed in a row and are fixed on

one side of a piece of steel plate and 4 or 5 such pieces of a row of

hooks are adhered into one long row of hooks. A single lower hook

is made up of two parts namely Hooks and Shank. It is attached

to the iron angle by force, but it moves forward and backward by

levers attached to both ends of the angle.

Reed Plates

The reed plate is a steel plate with holes through which the

twine passes. The reed plate's leading twine performs complicated

movements in various directions, during knot making.

Plate of Guide Hooks

The guide hook's main function is guiding the warp twine to

come straight to the upper hooks.

Set of shuttles in roller frame

During the knitting operation shutters supply the weft

twines. They are, so designed that the warp twines smoothly run

over them when lifted off from a lower hook. The steel bobbin is

loaded with weft twines placed in the machine or body of the

shuttle. A copper weight is hung on the weft twine in a hole of the

119

shuttle. Always one shuttle more than the number of weft twines

has to be placed in hidth of webbing.

Knot forming angle

This is a steel angle fixed to the frame of the machine

underneath the row of guide hooks. Knots are formed along the

top edge of this knot-forming angle. Knots are formed in this steel

angle and it determines the angle and unformity of knots.

Net Knitting

There are two main processes involved in the knitting

operation for making the webbing.

a) Loop Making Action

A reel and an upper hook perform the most vital function of

loop making. The warp twine is involved in the loop making

process. The reel, when in operation, moves left and right, up and

down, and backward and forward. While the warp twine is

running through a hole, the reel is accordingly moved. When the

upper hook makes a revolution a loop is formed. It rides two

revolutions when the loop is formed. The lower hooks go into the

forming of this loop to draw out the warp twine by its crooked

point through the loop. The moving lower hooks then draw out

the warp twines, till the end of the twines come to the end of the

120

shuttle and let go when the twines are brought just beyond and

then under the shuttle. The twines that are placed under the

shuttle and left free are pulled by the weight roll falling backward

through the loops. The shape of the loop finally disappears and

the secured loop also comes off the upper hook. This is a little

complicated technique which can be understood by operating the

machine very slowly.

b) Mesh forming action

The mesh forming and mesh forwarding device is composed

of a roller, gauge, cain wire for rotating the mesh, forwarding rolls,

and weight. The twine knotted on the knot-forming angle forms

meshes of the net. The ganger determines the size of the meshes.

The roller and the wire help to forward the knitting net of the

desired meshing size while the machine keeps on operating.

After one operation, the knitted net is shifted by half a

mesh. A warp twine is moved left and right. It is tied with a weft

twine, first at a position where the warp twine has been moved to

left. The distance corresponds to one pitch between the two guide

hooks. In this way, by the technique of alternate feeding webbing

is formed.

121

Depth Stretching Machine

The depth stretching machine is used to perform the depth

stretching operation for all types of nets. As soon as the webbing

is formed, it needs to be stretched uniformly to get its proper mesh

size and knot strength. This stretching machine consists of a

series of steel hooks on one end. When the end meshes of the

webbing are hooked, they are stretched with the help of a mesh

provided with warp.

Heat Stretching Machine

This machine has a heating chamber whose temperature is

around 100°C and the heating is done by electric coils. The nylon

webbing is allowed to pass through this chamber in the stretched

form so that the meshes will get proper shape and the knots are

tightened and the netting will be dry and ready for salt condition.

The advantages of the heat treatment are

a. Meshes get proper shape;

b. Knots do not project out; and

c. Netting gets dry.

Mending of Fishing Nets

Net mending is done by hand operation. Net mending is the

repairing of fishing nets that have been damaged and this may be

122

done either on board or in the workshops ashore and it is done

manually.

The mending outlet of a workshop consists of the braiding

on the trestle, hooks for the attachment of netting sheets, twine

bobbins, spools, net braided needles, a pair of scissors and a

sharp knife. There is a braiding rod consisting of a cylindrical iron

bar which is firmly fitted so that it will not move on screw hooks.

A set of round iron are inserted in the upper portion for twine

bobbins and there is a rack for keeping the needles and knife in

the open space between the legs of the trestle.

McshStiCkis indispensable to do the hand braiding. It

The meshstick a piece of hard smooth wood,

is about 10 cm long and made of

either flat or rounded. Its cross section, which varies with the size

of the mesh of the net, is equal to the length of the two sides of the

mesh laced on it.

The needle is the instrument that holds the twine necessary

for doing repairing work in the nets. it may be made of wood,

bone, plastic or metal and has various shapes.

With the help of the apparatus and tools, mending is done

by hand operation.

123

Dyeing the fishnets

With the help of a centrifugal separator, the nets are dyed to

the desired colours like blue, green, golden, yellow and the like.

Heat stretching

After dyeing the fishnets, the dyed fishnets undergo the heat

stretching process.

The heat stretching process consists of two stages namely

depth stretching and length stretching

Then the fishnets are neatly packed in suitable carton boxes

for sale.

3.14 TYPES OF NETS

Some of the important nets used in Tamil Nadu are broadly

divided under the following heads28

i) Fixed or Stationary

Bag nets

Boat seines

iv) Beach seines

V) Trawl nets or drag nets

vi) Drift nets

vii) Gill nets

viii) Cast nets

Gerhard Must - Netting materialsforjishiiig gear. London, 1982, p. 53

124

3.14.1 Fixed or Stationary nets

This type of net is fixed permanently or temporarily in the

tidal zone of the inshore waters during low tide. The net is fixed at

a suitable place by tying it down to wooden poles or stakes which

are posted at regular intervals. Sinkers and floats are also used to

expand the net for increasing the maximum effective catching

area.

The net may be laid in a single straight line, or in a zig-zag

manner or in the form of an enclosure. With the high tide, fish

swim to the net and as the tide recedes during low tide they get

trapped in the net. In Tamil, this type of net is called "Kalavalai"

or Kalamkuttivalai (Mannar).

Dip net

These are stationary nets operated from a platform of

wooden posts. The net is always in a stretched-out position and

by using pulleys and ropes the net is made to immerse in water.

This net is usually operated during night. Attractive lights are

attached to the net which shine just above the water level. The

fish are attracted by these lights, enter the net and suddenly the

net is lifted up. These nets are commonly operated in still

backwaters. It is originally designed by the Chinese and hence

known as the "Chinese dip net".

125

3.14.2 Bag nets

These nets are generally conical in shape with a wide mouth

and tapering end. In Tamil it is called "thurivalai". In fresh waters

this is operated by fixing it to a position against a running water

stream, or sometimes dragged by two catamarans in sea. The

"Chalay valai" of Kanniyakumari is a different version of the bag

net for catching oil sardines.

3.14.3 Boat seines

Usually the term seine is applied to very large nets. Boat

seines are large nets measuring tens of metres, lengthwise

operated by boats. Four boats are required to handle this net. It

is rectangular in shape with different mesh sizes. Each end of the

net is tied to a boat and the boats are gently moved in unison, so

that the net is dragged for a while. Then all the boats meet,

making the net assume the shape of a purse, and then hauled out.

This method of operation is generally referred to as "purse

seining", and the net is known as "purse seine", in Tamil

'Madavalai'.

3.14.4 Beach seines

These are the largest nets known to be used in Indian seas.

This net is usually operated along the Kanniyakumari coast during

the cold months from October to January, when mackerals and

126

white fish (Big Jawed jumper) schools swarm about the shore

waters. Typically this is a conical bag-like net measuring several

hundred feet with two wings. One end of the net is tied to a fixed

post on the shore, while a boat takes the other end into the sea

and making a semicircular sweep, brings it back to the shore.

Then both the ends are simultaneously dragged to the shore by a

group of men. The fish that are entangled in the semicircle are

hauled out. Live and fresh fish are brought to the shore by this

net. In Kanniyakumari it is known as "Karamadee" or "Periavalai"

and around the Coramandel coast, it is called "Madavalai".

3.14.5 Trawl nets

These nets are also conical in shape, and usually towed on

the surface or mid-waters by powered boats. Trawl nets are

primarily used for catching prawns and shrimps and rarely for

fish. When it is towed on the surface, it is called surface trawl and

when it is operated in the mid-water and bottom, it is said to be

mid-water and bottom trawl respectively. In recent times powerful

trawlers are employed to exploit the shrimp fishery resources.

3.14.6 Drift nets

These are barrier nets which are usually suspended

vertically from surface waters with the help of floaters and sinkers.

Some drift nets are of considerable length and breadth. The nets

127

are carried to suitable places by boats and allowed to hang in the

water for a considerable period and then catch particular varieties

of fish. Fish shoals, attempting to cross the net, are entangled.

When it is hanging this net is referred to as "thonguvalai" and

when it is operated at the bottom by using heavy sinkers, it is

called "thaathuvalai" in Kanniya'kumari.

3.14.7 Gill nets

This is also a variety of drift net, but selectively operated to

catch sardines or anchovy. It is also hung vertically from the

surface waters, but for a shorter duration than the drift net. The

mesh size exactly corresponds to the gill girth of the particular

variety of fish, for which it is operated. It is made of cotton, nylon

or hemp yarn and the colour usually merges with the sea water.

3.14.8 Cast nets

These are very small nets usually round in outline. They are

simply thrown in to the water by the arm's sweep by a single man.

A rope is usually attached to it. When the net spreads in the

water, fish are entrapped and then it is slowly hauled out by

pulling the rope. In Kanniyakumari it is called "veechuvalai."

128

3.14.9 Line and hook

This is an age-old device used for catching larger fishes.

This is usually made of coir or cotton rope. If there is a single

hook at the extremity of the rope with makers, then it is called a

simple line. But when many hooks are used in the same rope it is

known as a multiple line.

3.14.10 Long line

In this type of line and hook from a single horizontal long

rope, many hooks are suspended vertically from short ropes. Each

vertical rope known as basket is attached to the main horizontal

rope by self-rotating screws. Thus a long line may contain

hundreds of baskets and the total length of the line may measure

hundreds of metres. The special advantage achieved here is that if

a fish is hooked at a particular basket the line need not be hauled

out immediately. The long line can be operated for hours together.

When the line is winded up many fish, hooked at different baskets

can be taken out, enabling the fishermen to catch many fish by a

single operation. Long lines are often used in offshore tuna and

shark fishing. Live or artificial baits are attached to the hooks.

3.14.11 Trawl lines

When a long line is dragged with uniform speed by a

powered craft, it is known as trawl line. This is more effective in

catching tuna and other larger fish than the stationary long line.

129

The craft puts the bait in motion apparently, as a moving object.

Fish are found to take more freely a moving bait than a fixed one.

3.14.11.1 Annual production of fishnets

Approximately there are 134 single knot machines and 376

double knot machines used in the fishnet factories of the district29

One single knot machine manufactures 8-12 kg of fishnets per

day. One double knot machine manufactures 32-45 kg of fishnets per

day. About 10000 kg of fishnets are manufactured in the fishnet

factories in Kanniyakumari district per day. The district stands first

in the production of fishnet in the whole of India.

These fishnets are neatly packed with a brand name and

made ready for marketing. The marketing of fishnets is extensively

dealt with in the following pages.

29 Information provided by The Manager District Industries Centre, Nagercoil.

130

IL MARKETING OF FISHNETS

3.15 INTRODUCTION

Marketing is vital for all business. The success of any

business depends upon the marketing of its products in a

profitable way. The concept of marketing has been changing from

time to time with the revolutions taking place in the field of

technology, science and global economy.

3.16 MARKETING OF THE FISHNETS

Marketing the products in a profitable way is the be all and

end all of all manufacturers, entrepreneurs and businessmen.

Fishnet industry is no exception to this fact.

Marketing of fishnets covers all those economic and

business activities involved in the production and sale of any other

product moving the fishnets for marketing from the producer to

the consumer, through various stages of marketing process like

grading the product, branding, packing and packaging, pricing,

storing or warehousing and finally transportation.

3.16.1 Grading and Branding the Fishnets

Fishnets are graded according to their size, webs and

structure and are given brand names. Generally the company's

131

name is given as the brand name of the fishnets, 30 (Pon Jeya

Fishnets, Vasatham networks, Derik Filament, etc.). Some leading

fishnet brands have captured both local and outside markets.

3.16.2 Packing, packaging and Warehousing

Fishnets are well packed in plastic bags, carton boxes and

wooden boxes, so as to avoid any damage to the fishnets while

handling or transporting. Thus neatly packed fishnets are kept,

safely in the warehouses till they are transported to other places.3'

3.17 PRICE SETTING OF FISHNET

The producers of nylon fishnet in Kanniyakumari district

generally do not follow a uniform pricing method to fix the price of

the fishnets. However, while fixing or setting the prices, the cost of

production of fishnet, transportation and warehousing charges are

taken into consideration. As any other industry, the fishnet

industry in Kanniyakumari district is also dominated by a few

leaders, who fix the selling price of the fishnet. The other

producers of fishnet adopt the prices fixed by the leaders.

While fixing the prices the leaders of the industry generally

give weightage to the market demand of the product. They slightly

increase or reduce the price of the fishnets in such a way as to be

30 Information provided by Pon Jeya fishnets31 Ibid

132

competitive in the market. Generally the producers in

w the cost plus profit pricing method.KanniYakUm' district follo

The maximum care is taken to keep the price of the fishnets at

r, the demand dominates in fixing thecompetitive rates. Howeve

price of fishnets.

Table 3.10 shows the price details of monofilament and

multifilament nylon fishnets produced in Kanniyakurnari

district. 32

32 Data provided by Atlantic Marine Products

133

TABLE 3.10

Price List of Monofihiment Fishnets Produced inKanniyakumari District

Rate per KgSI.No. Mesh Size

0.16 0.20 0.23 0.32

1 18mm 425 320 - -

2. 20mm-21mm 405 320 - -

3. 22mm-23mm 390 320 - -

4. 24mm-25mm 365 320 - -

5. 26mm-27mm 355 305 - -

6. 28mm-29mm 345 305 - -

7. 30mm-31mm 335 305 - -

8. 32mm-33mm 330 275 210 -

9 34mm-35mm 320 275 210 -

10. 36mm-37mm 315 265 200 -

11. 38mm-39mm 310 265 200 -

12. 40mm-42mm 300 265 200 -

13. 43mm-45mm 290 255 190 -

14. 46mm-48mm 280 245 190 -

15. 49mm-52mm 280 235 185 -

16. 53mm-56mm 270 235 185 -

17. 57mm-60mm 265 230 185 -

18. 61mm-65mrfl 260 220 170 -

19. 66mm-75mm 250 220 170 -

20 76mm and above 250 220 170 165

134

TABLE 3. 11

The Price Details of Multifilament Fishnets Produced inKanniyakumari District

SI.No. Code No. Mesh Size Price per kg. in Rs.

1. 10mm 370

2. 12mm 340

3. 13mm 320

4. 14mm 300

5. 15mm 290

6. 18mm-20mm 275

7. 22mm-24mm 270

8. 25mm-29mm 265

9. 30mm-35mm 260

10. 36mm-38mm 255

11. 38mm-40mm 250

12. 41mm-44mm 245

13. 45mm-49mm 240

14. 50mm-62mm 235

15. 63mm-74mm 230

16. 75mm and above 225

17. 2/3 10mm 290

18. 12mm 285

19. 14mm-16mm 280

20. 18mm-22mm 275

21 24mmtO40mm 270

22. 41mmto60mm 265

135

3.18 EXTENT OF MARKETING

The fishnets produced in Kanniyakumari district are

marketed at four levels namely, district level, state level, national

level and global level.

3.18.1 District Level

A large section of the coastal population of Kanniyakumari

district engages fishing in their main occupation. Hence there is

good demand for nylon fishnets. Out of the total production of the

fishnet, only 16% is marketed within the district. The buyers

directly approach the manufacturing centres to buy the fishnets

according to their needs. Fishnets are also sold to the consumers

through local sales depots, opened at various places. Both

wholesale and retail sales are done in these shops. 'Star Nylon',

situated opposite to the Anna Bus Stand, Nagercoil, is a local sales

depot.

3.18.2 State Level

As Tamil Nadu has a long coastal line, there is good demand

for fishnets. The fishnets produced in Kanniyakumari district are

sent to other districts of Tamil Nadu for sale. Almost 24% of

fishnets produced in this district are marketed in other districts of

Tamil Nadu.

136

3.18.3 National Level

Almost 56% of the total production of fishnets is sent for

sale to far off places where there is good demand. Fishnets are

sold in markets in Mumbai, Goa, Calcutta, Cochin and Tuticorin.

3.18.4 Global Level

The fishnet manufacturers of Kanniyakumari district use

machinery of good quality imported from Japan. Their fishnets

maintain the world standard. The availability of efficient manpower

at a cheap price helps the entrepreneurs to keep the cost of

production at a competitive level in the international markets. The

communication revolution that is taking place through the wide

use of computers has helped the entrepreneurs to widen their

international market area in a spectacular way. The liberal

economic policy of the government and the globalisation of trade

boost the business. Out of the total production in the district, only

4% is marketed to foreign countries. These exporters maintain

secrecy regarding their international markets.

137

TABLE 3.12

Extent of Marketing by the Sample Fishnet Units

Marketing Area No. of Industry Percentage

District Level 8 16

State Level 12 24

National Level 28 56

Global Level 2 4

Total 50 100


3.19 SALES METHOD OF FISHNETS

The fishnets are sold directly, or through agents, and

through the combination of both.

TABLE 3.13

Method of Marketing Adopted by theSample Fishnet Units

Method of Marketing

Direct

Through Agents

Direct and through Agents

Total

No. of Units

17

22

11

50

Percentage

34

44

22

100


138

The Table 3.14 shows the method of sales adopted by the

sample fishnet units in Kanniyakumari district. Out of the 50

sample units, 17 (34%) adopt the direct method and 22 (44%) sell

through agents. The remaining 11 (22%) sample units sell the

fishnets both directly and through agents.

TABLE 3.14

Mode of Marketing by the Sample Fishnet Units

Mode of Marketing No. of Units Percentage

Wholesale 13 26

Retail 5 10

Wholesale and Retail 32 64

Total 50 100


The Table 3.14 shows the mode of marketing by the sample

fishnet units. Thirteen (26%) sample units adopt the wholesale

mode of marketing. 5 (10%) sell their fishnets through retail shops

and the remaining 32 (64%) adopt both the wholesale and the

retail modes of marketing to sell their products.

I

3.19.1 Nature of Sales

The fishnets produced in Kanniyakumari district are sold

not only within the district but also to other districts and states.

139

The producers sell their fishnets both for cash and credit. A major

portion of the fishnets produced in the district are sold on credit

basis.

TABLE 3.15

Nature of Sales Made by Sample Fishnet Units

Nature of sales No. of Units Percentage

Cash sales only 2 4

Both cash and credit sales 48 96

Total 50 100

Source: Primary Data

The Table 3.15 shows that only two sample fishnet units

(4%) sell their products for ready cash and the other 48 sample

units (96%) sell their products both for cash and on credit.

140

TABLE 3.16

Normal Period of Credit Allowed by the Sample Fishnet Units

Sl.No. Period of credit No. of units Percentage

1. Upto3odays 5 10

2. Upto 60 days 28 .56

3. Upto 90 days 17 34

Total 50 100

Sources: Primary data

The table above shows the period of credit allowed by the

sample fishnet units. Out of the 50 sample units 5 (10%) credit

only upto 30 days, 28 (56%) allow credit upto 2 months, and 17

(34%) allow credit upto 3 months. Thus all the sample units allow

credit mostly for periods ranging from 30 days to 90 days.

3.19. 2 Mode of transportation

The entrepreneurs utilise automobiles, like car, jeep, van,

lorry, trains, airways and courier service, according to the

necessity and urgency to transport the fishnets. They employ

automobiles to transport the fishnets to nearby places within the

district or state. They transport fishnets to other states through

railways and in case of urgency, the fishnets are transported as

Air Cargo. Now-a-days certain fishnet units send their products

through courier service when needed and wherever possible.

141

Chart

Mode of Transportation

Automobiles Train Airways Courier

1

Car

Jeep

Tempo Van

Lorry

About 3,65,000 kgs of fishnets are produced annually by the

sample fishnet factories. As the quality of these fishnets conforms

to world standard, they have good demand throughout the world.

However, the marketing side is very weak, when compared to the

production side. If the manufacturers take necessary steps to find

the real demand for fishnets, they can easily sell their products

and also for attractive prices. The growth rate of production and

marketing is analysed by applying statistical tools.

3.20 ANALYSIS OF GROWTH RATE OF PRODUCTION ANDMARKETING OF FISHNETS

To analyse the growth of production and marketing of

fishnets, the compound growth rate analysis and techniques have

been used.

142

Compound Growth Rate = (Antilong of b- 1) x 100

The compound growth rate analysis has been applied to the

following eight variables: the average use of raw materials (Nylon

yarn), the average quantity of fishnets production, the average

value of sale, the average comsumption of electricity, the average

fixed capital utilised, the average working capital, average number

of employees and the average profit during the study period.

TABLE 3.17

Average Use of Raw Materials (Nylon Yarn) in the Sample UnitsDuring the Study Period

YearAverage use of raw Index Numbers

materials in Rs.

1990-91 29,04,000 100.00

1991-92 43,92,100 151.23

1992-93 47,50,000 163.55

1993-94 49,55,750 170.63

1994-95 56,37,875 194.17

1995-96 61,72,478 215.58

1996-97 67,45,628 235.60

1997-98 71,65,790 250.27

1998-99 73,46,770 256.59

1999-00 76,36,859 266.72

Source: Records of fishnet industries

143

From the Table 3.17 it can be understood that the average

use of raw materials reached Rs. 76 36,859 in the year 1999-2000

from Rs. 29,04,000 during 1990-1991. The average use of raw

material increased almost 2.5 times. It can also be seen that the

average use of raw materials is increasing year after year.

Analysing the same data with the help of index number, it is

been that the use of raw materials is seen to have increased by

266.72 per cent.

TABLE 3.18

Trend and Growth Rate of Usage of Raw Materials

Trend Co-efficientParticulars

Average usage of raw 15.01 0.093

materials(7.96)

0.873 9.76

Note : Figure in brackets is the 't' value

* Indicates that the co-efficient is statistically significant atthe 1% level

From Table 3.18 it is seen that the trend value of raw

materials used in the sample units is statistically positive and

significant. The compound growth rate is 9.76 per cent. The R2

value indicates that 87 per cent of variation is explained by the

variable on the use of raw materials during the study period. The

average growth rate of raw materials is 15.01 per cent but the

compound growth rate is 9.76 per cent.

144

TABLE 3.19

Average Production of Fishnets in the Sample UnitsDuring the Study Period

YearAverage production Index Numbers

in Kg

1999-91 21400 100

1991-92 33350 155.84

1992-93 37500 273.08

1993-94 40200 292.74

1994-95 39800 289.83

1995-96 44680 325.37

1996-97 52700 383.77

1997-98 48950 356.46

1998-99 47460 345.61

1999-00 56440 411.00

From the Table 3.19 it is seen that the average production of

fishnets increase from 1990-91 to 1993-94 steadily. From the

year 1993-1994, the production showed fluctuations. During

1999-2000, the production reached 56,440 Kgs. It can be inferred

that the production increased 2.5 times during the study period.

A careful analysis of the data with the help of the index

numbers shows that the production of fishnets increased by 411

per cent during the study period.

145

TABLE 3.20

Trend and Growth Rate of Average Production ofSample Fishnets Units

Trend Co-efficient

R2III10.17.0815 0.757

(5.39)

Particulars

Average fishnetproduction

CGR

8.49


* Indicates that the co-efficient is statisticallY significant at

the 1% level

From the Table 3.20, it is understood that the trend value of

production of fishnets in the sample fishnet units is statistically

significant. The average growth rate of production is 10.17

per cent and the compound growth rate is 8.49 per cent only. The

R2 value indicates 76 per cent variation, which is explained by the

variable on the production of fishnet during the study period.

146

TABLE 3.21

Average Sale of the Sample Fishnet Units During the Study Period

Year Average Sales Index Numbers

1990-91 62,76,000 100

1991-92 99,33,900 158.28

1992-93 1,22,45,000 195.10

1993-94 1,27,65,000 203.39

1994-95 1,30,26,000 207.69

1995-96 1,37,31,000 218.93

1996-97 1,51,91,200 242.21

1997-98 1,56,64,000 249.75

1998-99 1,47,20,000 234.70

1999-00 1,48,80,000 237.25

It can be seen from the Table 3.21 that the average sales of

fishnets increased from 1990-91 to 1997-98, and during the years

following there was a slight decline and during 1999-2000 there

was a slight increase in the sale. During the study period, sale

increased almost 2 times.

The analysis of the sales data with the help of the related

index numbers shows that the sale of fishnets increased by 237.25

per cent during the study period.

147

TABLE 3.22

Trend and Growth Rate of Average Sate of Fishnets

Trend Co-efficient

Particulars

Average fishnet Sales 1593074 0632776

(4.053)



From the Table 3.22 it is seen that the trend value of the

sale of fishnets during the study period is positive and impressive.

The average growth rate of the sale is 15.93 per cent, but it has

registered only, 7.76 per cent of compound growth rate. The R2

value reveals that 15.93 per cent variation is explained by the

variable in the growth of sales during the study period.

148

TABLE 3.23

Average Consumption of Electricity by the Sample UnitsDuring the Study Period

YearElectricity Index Numbers

consumption in Rs.

1990-91 25,250 100

1991-92 36,425 144.26

1992-93 38,225 151.39

1993-94 42,362 167.77

1994-95 46,306 183.39

1995-96 50,280 199.13

1996-97 56,256 222.80

1997-98 61,312 242.82

1998-99 66,377 262.88

-

1999-00 71,561 283.41

From the Table 3.23 it is seen that the consumption of

electricity increased consistently during the study period. In

monetary terms it increased almost three times during the period.

From the analysis of the data with the help of index

numbers, it is found that the consumption of electricity increased

by 283.41 per cent during the study period.

149

TABLE 3.24

Trend and Growth Rate of Electricity Consumptionby the Sample Units

Trend Co -efficient

Pa rticu l ars ^2^ ^CGR

Average Electricitylectricity 10.23 0.94 10.78

Consumption

(12.37)



From the Table 3.24 it is understood that the trend value of

the consumption of electricity is statistically positive. The average

growth rate of the consumption of electricity is 10.23 per cent and

the compound growth rate of the consumption of electricity is

10.78 per cent. Thus it is understood that the compound growth

rate is higher than the average growth rate. The R 2 value indicates

that 94 per cent variation is explained by the variables on the

consumption of electricity during the study period.

150

TABLE 3.25

Average Amount of Fixed Capital Utilised in the SampleFishnet Units During the Study Period

Fixed capitalYear R

Index Number

1990-91 96,00,000 100.00

1991-92 1,11,20,000 115.83

1992-93 2,22,50,000 231.76

1993-94 2,10,00,000 218.74

1994-95 1,70,00,000 177.08

1995-96 1,97,60,869 205.83

1996-97 2,17,31,428 226.36

1997-98 2,33,53,488 242.21

1998-99 2,88,20,833 298.91

1999-00 3,15,18,000 326.88

Table 3.25 shows that the average amount of fixed capital

used in the sample fishnet factories increased from Rs. 96,00,000

during 1990-1991 to Rs. 3,15,18,000 during 1999-2000. In other

words, the fixed capital registered a growth rate of three times.

A careful analysis of the above data with the help of the

corresponding index numbers shows that the use of fixed capital

increased by 326.88 per cent.

151

TABLE 3.26

Trend and Growth Rate of Average Amount of Fixed Capital in theSample Fishnet Units

Trend Co-efficient

a b R2

16.19 0.108 0.72

(4.914)

Particulars

Average amount ofFixed capital

CGR

11.43



From the Table 3.26 it is seen, that the trend value of the

fixed capital used is positively increasing. The average growth rate

of fixed capital is 16.19 per cent and the compound growth rate is

11.43 per cent. So, there is a slight decline in the compound

growth rate when compared to the average growth rate. The R2

value of this analysis indicates 0.72 percentage variation which is

explained by the variable on the growth of fixed capital during the

study period.

152

TABLE 3.27

Average Amount of Working Capital of the Sample UnitsDuring the Study Period

YearAverage working Index Numbers

capital

1990-91 33,04,000 10000

1991-92 4455,000 134.84

1992-93 49,56,000 150.00

1993-94 51,30,562 155.28

1994-95 47,35,080 143.31

1995-96 51,92,000 157.14

1996-97 54,68,000 165.49

1997-98 56,48,600 170.96

1998-99 58,96,400 178.46

1999-00 61,87,974 187.28

From the above Table 3.27 it can be seen that the average

amount of working increased to Rs. 6 1,87,974 during 1999-2000

from Rs. 33,04,000 during 1990-91. The average use of working

capital registered a steady increase annually but for the year

1994-95 when there was a slight decline.

A careful study of the with the help of the related index

number shows that the use of working capital during the study

period increased by 187.28 per cent.

153

Table 3.28

Trend and Growth Rate of the Average Amount ofWorking Capital in the Sample Units

Trend Co-efficient

a b R2

15.15 0.05 0.748

(5.27)

Particulars

Average amount ofworking capital

CGR

5.3



It is understood from the Table 3.28 that the trend value of

working capital used in the sample fishnet units is statistically

positive.

The average growth rate of the working capital during the

study period is 15.15 per cent, but the compound growth rate is

only 5.3 per cent. The R2 value indicates 75 per cent variation,

which is explained by the variable on the growth of working capital

during the study period.

154

TABLE 3.29

Average Number of Employees in theFishnet Industry During the Study Period

Year

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

No. ofemployees

12

15

31

29

34

37

38

39

39

40

Index Numbers

100.00

125.00

258.33

241.66

251.67

273.88

383.98

394.08

394.08

404.18

It is understood from the Table 3.29 that the average

number of employees in the sample fishnet units during the study

period was 40 in 1999-2000 against 12 in 1990-9 1. Thus during

the study period, the average number of employees engaged in the

sample fishnet units increased by 3.5 times.

While critically analysing the data with the help of the index

numbers it is found that the average number of employees

increased by 404.18 per cent.

155

TABLE 3.30

Trend and Growth Rate of Average Number ofEmployees of the Sample Units

Trend Co-efficientParticulars

a b R2 CGR

Average number of 273 .1185* 0.66 12.59employees

(4.34)



It is understood by the scrutiny of the Table 3.30 that the

trend value of the average number of employees engaged in the

sample fishnet units is positive and significant. The average

growth rate of employees is 2.8 per cent but the compound growth

rate is 12.59 per cent. This is a good employment trend. The R2

value indicates 66 per cent variation which is explained by the

variable on the engagement of employees during the study period.

156

TABLE 3.31

Average Percentage of Profit Earned by the SampleFishnet Units During the Study Period

Average inYear

Index NumbersPercentage

1990-91 20.00 100.00

1991-92 18.25 91.25

1992-93 18.08 90.40

1993-94 16.35 81.75

1994-95 14.65 73.25

1995-96 12.84 64.10

1996-97 12.00 59.91

1997-98 11.5 57.41

1998-99 1125 56.16

1999-00 10.2 50.92

It can be understood from the Table 3.31 that the average

profit earned by the sample fishnet units during the study period

declined to 10.2 per cent in 1999-2000 from 20 per cent in

1990-1991. It can be clearly understood from the table that the

average profit earned by the sample fishnet units was declining

year after year.

57

While analysing the data with the help of the index

numbers, it is found that the average profit earned by the sample

units decreased by 50.92 per cent.

TABLE 3.32

Trend and Growth Rate of the Average Percentage ofProfit Earned by the Sample Units

Trend Co-efficient

Particulars I I

a b R2 CGR

Average

percentage of 3.075 -.0779 0.973 -7.45profit

-18.219



It is understood from the Table 3.32 that the trend value of

the profit earned by the sample units is alarmingly negative. The

average growth rate of the profit earned is 3.08 per cent and the

compound growth rate has registered a negative growth of -7.45

per cent. The R2 value shows 97 per cent variation which is

explained by the variable on the average profit earned by the

sample units during the study period.

158

3.21 SUMMARY

From the analysis it is inferred that the average use of raw

materials, the average quantity of production of fishnets, the

average sales of fishnets, the consumption of electricity, the

average amount of fixed capital, the average amount of working

ber of employees in the sample fishnetcapital and the average num

units, have recorded an increase in average growth rate and

compound growth rate but the profit earned by the fishnet

industryhas been declining year by year during the study period.

159

chapter - iii production and marketing of...

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