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    CASE-7

    RICE HUSK BOARD

    In 1974 a working group on wood and wood based industries appointed by National Committee on Science and

    Technology, Ministry of Science and Technology, discussed the problems faced by such industries. The

    committees took stock of R&D activities in wood based industry and suggested the identification of suitablealternative material to replace wood products and initiation of related R&D work. The report was discussed in a`

    meeting held on 4th April 1977 under the chairmanship of the Secretary, Department of Science and Technology

    (DST). The DST after careful scrutiny sponsored the project "Development of Reconstituted Panel Products fromLigno cellulosic Material" and identified the Indian Plywood Industry Research Institute (IPIRI), Bangalore totake up the research. The financial outlay earmarked was about Rs. 7.82 lakh for a period of 3 years which was

    further extended for a period of six months at the request of IPIRI.

    Wood Industry: Search for Alternatives

    It is well recognised that the increasing demand for sawn wood and panel material in the country cannot be met

    from the existing forest resources. The projected requirements for industrial wood are expected to be of the order

    of 4, 41,550 tonnes* by the year 2000, against the actual production of 3,30,260 tonnes in 1990. Considering the

    fact that forest regeneration is proceeding at a very slow pace, it is unlikely that forests alone could provide theraw materials required for the mechanical wood products industries. The growth rate in the mechanical wood

    products industries has been slow.

    In all the developed countries, particle board has succeeded to a great extent in meeting the shortage of sawn

    timber. The general trend the world over in wood based panel industries is to produce more particle boards

    because of the more efficient way of utilizing wood resources. In our country particle board industry has beenslowly establishing itself as an alternative to sawn wood. However, even waste wood or inferior quality wood has

    become scare due to depletion of forest resources. There is, therefore, need to develop appropriate technologiesfor making panel material using ligno cellulosic agricultural residue, such as rice husk, cotton stalk etc. The

    purpose was to identify suitable renewable agricultural waste to manufacture particle board to replace wood to

    conserve natural resources and thus preventing depletion of forest and environmental degradation.

    Product Identification and Research

    Indian Plywood Industries Research Institute (IPIRI), Bangalore, had undertaken research work in 1977 to

    develop particle board using ligno cellulosic agricultural residue such as rice husk, groundnut shell etc. Thepurpose was to identify suitable renewable agricultural waste to manufacture particle board to replace wood to

    conserve natural resources and thus preventing depletion of forests/environment. The project was financed by

    Ministry of Science and Technology. The research work involved development of suitable resin for binding theparticle and development/identification of machinery for the manufacture. Laboratory work was completed in

    1982 and it was also established that rice husk is a good alternative material for use in the manufacture of particleboard.

    Industrial researchers in India and other countries have tried for the past few decades to manufacture particleboards from rice husk. However, it is the work done at Indian Plywood Industries Research Institute (1PIRI),

    ,Bangalore, with financial research grant form Ministry of Science and Technology in late 1970s, that has formed

    the basis for the development of rice husk board technology. In India, rice husk is available to the extent of 30

    million tonnes per year. This will steadily increase with expansion in paddy cultivation to feed an increasing

    population. This technology offers complete utilisation of agricultural waste to manufacture value added buildingmaterial and also to help conservation of forests. The depletion of forest reserves is a major concern for

    environmentalists as it has been the root cause of famines in Africa and some parts of Asia.

    Rice Husk Board is the first product of its type developed for the first time in India as an effective substitute forwood based panel boards. The patented technology from IPIRI has been assigned to NRDC for commercial

    *Source: DSIR Report October 1991

    Case (1991) prepared by Dr S.T. Narayana Swamy, Chief Engineer, National Research Development Corporation, NewDelhi.

    Case material has been prepared to serve as a basis for class discussion. Cases are not designed to present illustrations of

    either correct or incorrect handling of managerial problems.

    Copyrightof IGNOU

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    exploitation. The technology was licensed in 1988 to an entrepreneur in Bangalore to put up a commercial plant.

    The NRDC has extended interest free developmental loan to the firm under its `Technology Development

    Programme to meet the project cost. NRDC has also extended engineering support to the project. The project wasjointly monitored by the Corporation and the entrepreneur. The unit came into production within a record time of

    18 months. Presently the firm is in regular production and has developed variety of products to meet differentapplications. The product is well accepted in the market as a substitute for wood based panel boards.

    Product Technology

    The product technology is explained below:

    Process of Manufacture:The process of manufacture of rice husk board includes, cleaning of husk as received

    from the rice mills, wind shifting to remove dirt and stones. The cleaned rice husk is coated with adhesive in a

    specially designed resin blender. The coated rice husk is spread on mild steel cauls sheets as an even mat. The

    process is called mat forming. These mats are transferred to hot hydraulic press. The platen of the hydraulic press

    are heated to desired temperatures and specific pressure is applied for a predetermined period. The boards are

    taken out form the press and the edges are trimmed to the desired dimensions. The boards may also be sanded toobtain smooth finish. A flow diagram of the manufacturing process is shown in Figure 1.

    Development of Resin:The critical factor in making particle board from rice husk is the adhesive used in binding

    the particles. The IPIRI has done extensive research work in modification of phenol formaldehyde resin adhesivefor bonding rice husk into particle board suitable for tropical climate. For rice husk board manufacture, part of the

    phenol in phenol formaldehyde resin is replaced with less costly cashew nut shell liquid (CNSL) or cardanol. It is

    noteworthy that CNSL is also an agricultural product and only a part of the potential annual production of 20,000tonnes finds industrial uses at present. The thermosetting phenolic nature of the adhesive confers on the board its

    resistance to water and contributes to its durability.

    Particle Boards: Specification of Uses/Applications

    Rice Husk Boards are manufactured in various densities, thickness, types and grades to suit a wide range of

    applications. The manufacturing process, based on highly innovative technology, ensures quality in the total sense.

    Some of the uses/applicationsare shown in box 1.

    Box 1: Some Uses/Applications of Rice Husk

    Wall panelling Medium density boards, both plain and overlaid decorative in any thickness, can be used as

    wall panels in any situation without fear of decay, insect or termite attack.

    Doors, furniture Plain and overlaid decorative medium density boards can be used instead of wood- based

    windows, table topsboards. The boards when used as the core for flush doors and window shutters ensures

    freedom from insect attack, the so-called "dry rot".

    False ceilings Low density tiles make attractive false ceilings. Thermal insulation and sound absorption areadded advantages.

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    Roofing panels Medium and high density boards make excellent pre-fabricated, light-weight roof panels

    for low cost housing, roof terrace houses etc. because of their resistance to decay and

    more important fire.

    Insulation Low density boards can be used as thermal insulation material in refrigeration and

    containers.

    Partitions and These boards being fire resistant and low cost are advantageous for use in partitions

    stage settings and for construction of stage settings.

    Industrial and

    domestic flooring Its high abrasion resistance makes it ideally suited for floorings.

    General purpose It is specially designed as a general purpose board for a host of applications wherestrength combined with freedom from wood-borers is required.

    The Rice Husk Boards can be manufactured tailor made to suit the different applications. These boards are ideally

    suited for high technological applications such as audio-speakers, air-conditioner decks, auditoriums (acoustic

    applications) etc.

    Rice Husk Board with bamboo mat finish is ideally suitable for shuttering work. These boards are re-used formore number of times compared to conventional plywood boards.

    Properties of Boards

    Rice husk boards have the same distinctly advantageous properties (shown in Box 2) when compared to wood

    particle boards and other similar panel materials,

    Box 2: Properties of Rice Husk Board

    Termite resistance It has been tested and proven that rice husk board is termite-resistant even when

    exposed to termites in a termite mound for years

    Decay resistance In a tropical country like India, where panels come into frequent contact with

    moisture in all forms. Rice Husk Board has a distinct edge over wood-based boards-

    because rice husk is in itself decay resistant. And this is further improved by decay-proof synthetic resin adhesive used

    Fire resistance The naturally inherent fire resistance of rice husk is further increased by compacting

    the husk to a high density. In fact no other material with equivalent properties is

    available in such large quantities for mass use in multi-storeyed buildings where fireresistance is an imperative requirement

    Rodent resistance Basically a gritty material, rice husk becomes grittier material, rice husk adhesive

    and bonded in the form of dense boards. This makes it difficult to gnaw at, and

    rodents stay awa y - a quality that makes specially useful in food grain and other

    storage applications

    Technical superiority

    Internal bond strength, elasticity, dimensional stability, screw and nail holdingcapacity, abrasion resistance, surface hardness in Rice Husk Board scores over

    conventional wood-based materials. In fact through intensive R&D checks and

    practical applications, the long-lasting features of Rice Husk Boards have beenproven time and again

    Economics of Production

    Rice husk is abundantly available raw material and it may be described as virtually inexhaustible. Although it is ar

    agricultural by-product, it is not seasonal but is generated throughout the year in rice mills. The rice husk has, atpresent, no significant industrial use except as a boiler fuel in some places. It is practically wasted, by and large.

    Several rice mills are faced with the problem of disposal of rice husk. Therefore, the cost of rice husk would not,

    at any time; he expected to go higher than the cost of firewood. Also the size of particles of rice husk which come

    from the mill is satisfactory for board manufacture. The energy consuming operations of chipping and drying arenot required for rice husk. Subsequent board manufacturing operations are similar for both wood particle boars

    and rice husk board. The same plant can produce low density. insulation board to high density

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    boards required for varied applications. Therefore, the cost of rice husk board is 25 to 30 per cent cheaper than the

    wood based particle board.

    Technology Transfer

    National Research Development Corporation (NRDC) is a premier technology transfer agency in the country. The

    laboratory scale technology was referred to NRDC for commercial exploitation. Over the years, number ofattempts were made to identify a suitable entrepreneur for upscaling the technology. The Corporation was ready to

    sanction interest free development loan under its technology development programme. But it was only in 1988, an

    enterprising promoter (Padmavati Panel Boards Pvt. Ltd., Bangalore) came forward to take up the project. He is

    an engineer and a successful builder. He was aware that the product could be used in building industry. The urgeto undertake manufacture of new product and to succeed was his motivation.

    Upscaling

    The upscaling of the technology was done in two stages. First smaller size boards were manufactured using 2' x 2'

    Hydraulic Hot Press. All the process parameters were carefully documented. The boards were tested for various

    properties as required under Bureau of Indian Standards for wood based particle boards. The test results weresatisfactory. Some boards were made into doors and other building products and put into actual use. The product

    met the requirements of the wood based particle boards and was accepted by the users. Encouraged by the results,standard size hydraulic hot press (8' x 4') was installed along with the additional balancing equipments required

    for regular production. The production started during the beginning of 1990. The product husk board-has better

    properties when compared to wood based particle board. It has application in buildings, furniture etc. It is aninnovative product successfully developed in India for the first time in the world.

    Project Monitoring

    A Monitoring Committee consisting of representatives of NRDC, IDBI, IPIRI and the Promoter was constituted.

    The committee met once in three months, sometimes, earlier to monitor the progress of the project. The committee

    was able to identify weak areas in the project and helped in overcoming the same. This has given encouragement

    to the promoter and made him confident in the development of the technology.

    Manufacture of Plant and Machinery

    There are number of particle board plants working in the country. But the entire plant and machinery wereimported along with technical knowhow. Therefore, it was one of the task to develop indigenous equipments for

    the manufacture of rice husk boards. The important equipments required are:

    Mat Forming Machine Resin Blenders Material Handling Equipments Hydraulic Multi Daylight Hot Press Finishing Line Saws Wide Belt Sanders etc.The capacity of the plant was kept deliberately low to disperse the manufacturing plant at different locations. The

    transportation cost of bulky raw material is more expensive than the finished product. Therefore, efforts were

    made to develop plant and machinery to meet small capacity production at a reasonable cost.

    Mat formation is an important part of the manufacturing activity. This is a continuous process and there is no

    indigenous manufacturer. Development of a suitable manufacturer takes time and trials. Therefore, manual mat

    formation with vibrating table system was adopted. The system is simple, less costly and meets the requirement ofsmall volume production.

    There are a number of units manufacturing resin kettle and blenders. The resin kettle is widely used in many

    chemical industries. The blenders are manufactured as per the specific requirement. Similarly manufacture of

    material handling system including loading and unloading system for the hydraulic press were entrusted to 2-3

    parties. Their past experience in fabricating similar system for imported particle board project was very useful.

    There are a number of firms manufacturing multi daylight hydraulic hot presses for plywood and lamination units..The expertise of such firms was considered and they were encouraged to develop suitable press for rice husk

    board project. The necessary technical input was given by IPIRI and other experts in the field. Presently there are

    3-4 parties capable of manufacturing this vital equipment for the rice husk board project.

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    The circular saws required for finishing line and belt standers were suitably modified to meet the requirement of

    husk board characteristics. Special carbon tipped cutting teeth for the saw were developed.

    The entire range of plant and machinery required for the project is indigenously available. This has helped in

    reducing the project cost.

    Market Strategy

    The Rice Husk Board is a new product and requires considerable efforts in introducing it into the market. The

    boards, first introduced in the form of finished product, were later converted into doors, windows and usedwherever possible. The boards were also used in partitioning, false ceiling etc.

    Also a number of new products were developed to suit the varied applications. The acceptance of the product isincreasing day by day. Presently, the boards are marketed through converters who directly use the boards to

    manufacture finished products.

    Documentation and Technology Transfer

    The technology has caught the imagination of general public and government agencies. The process is presently

    licensed to 10 firms in different parts of the country (Some firms are listed in Exhibit I). In about 12 months time,

    complete technology transfer shall be made available. The technology transfer consists of the following

    documents/stages:

    Providing technical knowhow documentation Providing specification of plant and machinery along with name and address of the manufacturer Specification of raw material and name and address of the supplier Training of the licensee personnel at the existing commercial plant to impart "hands-on" experience Commissioning of the plant to produce quality product.

    Technology Innovation

    The research and development of Rice Husk Particle Board is an example of a radical innovation in new productdevelopment. It replaces well known and commonly used wood and wood based particle board in day-to-day.

    application, The research has taken considerable time, The patten of further innovation has taken long period and

    showed a very general feature of technological progress which followed the "technology S-curve".

    Anticipating technological change is an important management function. Introduction of new product and newmarket awareness is a radical departure. They are hard to plan.. However, incremental innovations or

    improvements to the existing product have often been planned over a period of time. Figure 2 shows the general

    shape of rate of technology change. At the research stage, the rate of technological progress is exponential as a

    plethora of new ideas and alternative possibilities are generated. Later the rate of technological change slows to alinear growth. Finally, the rate turns off to little or no growth , as a natural limit to the technology is approached.

    (The different stages of development of a new product and efforts required to make it technically feasible andcommercially viable case explained in detail in some units of the course on Technology Management).

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    Let us summarise the whole case. The Ministry of Science and Technology had recognised the need to develop

    alternative material (identification of new Product)' to prevent depletion of forest resources and degradation of

    environment. A specialised research institute capable of undertaking research project was identified. The requiredfinances were made available to undertake research work. The task of technology transfer was assigned to NRDC

    which had long experience in the field. Provision of requisite finance and the commitment on the part of thepromoter has made the transfer of technology smooth and project a success.

    Monitoring of the project was an important management task which was expected to ensure better coordination in

    technology transfer. All the process parameters were documented and detailed specifications of the plant and

    machinery were made available to the licensee. These factors contributed in successful and smooth transfer oftechnology.

    Questions

    i) Make out a case for augmenting the use of Rice Husk Particle Boards in India.ii) Have the Particle Boards become popular in India? Give reasons in support of your answer. (For your

    answer you may collect information from business Journals/manufacturers/dealers in particle boards.)

    iii) Discuss the role of NRDC in developing and transferring technology for manufacture of Rise Husk Boards,iv) Critically examine the policy of NRDC in transferring technology (it first transferred technology to one

    manufacturer, later on to some other manufacturers also).

    v) What is precisely meant by upscaling of Technology? How was upscaling achieved in this particular case?vi) What is the most critical component in the process of manufacturing of particle boards? How was the

    problem in this respect overcome?

    vii) Critically examine technology S-Curve. Must all technologies follow bell-shaped S-Curve.Exhibit 1: List of Some Firms Licensed to Manufacture Risk Husk Particle Boards

    1. B.R. Agro Boards Pvt. Ltd., Hyderabad2. Prithvi Panel Boards Pvt. Ltd., Nagpur3. Advance Particle Boards Pvt. Ltd., Bombay4. Punjab Boards Pvt. Ltd., Gurdaspur Distt.