Concrete based roofing tiles suitable for sloping roofs are produced using the MCR Technology. An enterprise based on this technology manufactures roofing tiles and sells tiles and often provides complete roofing services. The promotion of this technology is supported by SDC, the Swiss Centre for Development and Co-operation through DA’s Building Materials Program. This technology is backed by 10 years of Research and Development and is well established in various parts of India, e.g., Bihar, U.P, M.P and H.P. Southern Karnataka has been chosen as a high potential region, through an intensive market potential study conducted at the national scale.
According
to the market potential study, Southern Karnataka, especially the
Bangalore-Mysore region has a potential for supporting a minimum of
100 enterprises producing 200 tiles / per day resulting in a
production and utilization of 20,000 tiles per day or 500,000 tiles
per month. For achieving a critical visibility in the market for ‘auto-rolling’,
15 million tiles are to be installed on roof.
Selection of the Entrepreneurs
Entrepreneurs in Southern Karnataka were selected through direct marketing approach. Care was taken to engage second generation entrepreneurs who have sufficient knowledge about the building material trade.
Disbursement of loan
TARA is managing funds from the Rockefeller foundation for "Creating Sustainable Livelihoods through enterprise multiplication". The fund has been utilized to finance upto 50% of the cost of the equipment at an interest rate of 12% payable within 24 to 36 months through quarterly installments. Post dated cheques for the EMI and 50% of the advance is deposited by the entrepreneur upon signing the enterprise agreement.
The machines are hypothecated to TARA, till such time as when the loan amount is realised.
Marketing Support
Studies in the building material sector show that most enterprises die their natural death due to substandard quality products and cut throat price wars. To avoid such a situation all the Southern Karnataka entrepreneurs have been brought under one umbrella of an Association called the "MYCON Tile Manufacturing Association" for promoting the product under a common brand name of "MYCON tiles" based on a uniform pricing policy.
This has benefited the association in:
i) sharing the cost of promotion
ii) maintaining uniform quality and price
iii) promotion of a common brand name which can benefit all members.
Marketing the
tiles and roofs is the responsibility of individual entrepreneurs.
The members
of the association have formulated a promotional plan including a budget and
time line which is monitored through the Development Alternatives Building
Materials Program.
Present Situation
The seven enterprises situated primarily in Mysore, Chamrajnagar, Talakad and Maddur (see map) are manufacturing 160 tiles / day each (80% capacity utilisation) on a continuous basis and have been successful in selling 25,000 tiles out of 56,000 tiles produced so far, earning a net profit of Rs. 75000/-.
They have organised to conduct awareness programmes at the taluk level inviting masons and carpenters and have received a good response. As per last received reports, orders for 25,000 tiles are in the pipeline. The association is also finalising a deal with an intermediary who will sell their tiles through dealers of the clay tiles, to jack up sales manifold.
Repayment of loan is consistent and as per schedule. 100% recovery rate has been achieved so far.
