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Transfer of Technology Models (TOTEMs)


Rattan furniture making unit
Why rattan furniture?

Rattan furniture has been produced since Roman times. The furniture is elegant, stylish and highly popular in many countries. During the early part of the 20th century most of the rattan furniture was produced in affluent countries that imported raw rattan from producing countries. Nowadays furniture is manufactured in the raw material producing countries and so the benefits of the high value-addition that manufacturing imparts remain in the producing country.

What is the market for rattan furniture?

The market for rattan furniture is very large and it accounts for a significant proportion of the export earnings of countries such as Malaysia and Indonesia. The international markets are particularly lucrative, and much of the rattan furniture produced is sold to more affluent countries in Europe and America. The markets are expected to continue to develop.

What is the role of a rattan furniture making unit in rural development?

A rattan furniture making unit will provide a significant number of jobs to local people, both in the unit itself and in its forward and backward linkages. The unit is non-polluting and can be established in conjunction with a number of other related units, such as the steam bending unit and the rattan oil curing, bleaching and preservation unit as an integrated community project. The unit should only use rattans harvested from sustainably managed forests or plantations, and thus promote environmental protection. Local plantations could be established to supply the unit.

How do I establish a rattan furniture making unit?

A rattan furniture making unit requires considerable start-up capital, land, and reliable supplies of raw materials, labour, electricity and water. The unit described in this model would cost USD $ 84, 000 to establish and USD $ 53, 000 to run each month, and would generate pre-tax profits of USD $10, 000 per month.

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