ECO-GLOBAL ENERGY

bbbbb

DETAILED PROJECT
REPORT
This Detailed Project Report (DPR) has been prepared by SPYN Financial Services Private
Limited (SPYN) acting in its capacity as Aarranger of the Rupee Debt facilities for Bhavya
Constructions Private Limited (BCPL)

FOR BIO-MASS
As of the date of thisBRIQUETTE PROJECT
report, the Arrangers confirm that to the bestATof their knowledge the
information and statements contained in this Report are true in all material respects.
MEDCHAL, HYDERABAD
The purpose of this DPR is to provide information to assist the recipient in obtaining a
general understanding of the Project in order to consider providing debt facilities to the
Project. The information does not purport to be all-inclusive or to contain all information that
a prospective debt provider may desire. It is understood that the recipient of this DPR will
perform its own independent investigation and analysis of the proposed structure and risks
involved in the Project. The information contained herein is not a substitute for the recipient’s
[By ECO-GLOBAL ENERGY]
independent investigation and analysis.

No representation, warranty or undertaking (expressed or implied) is made, and no

responsibility is accepted by SPYN as to the accuracy, adequacy, completeness or
reasonableness of this DPR or any further information, notice or document at any time
supplied in connection with the project.

The information contained herein includes certain statements, estimates and projections made
by SPYN based on its best assessment of the anticipated future performance of the Project.
Actual results may vary from the projected results contained herein. It should be recognised
that projections of future events are inherently subject to significant economic and
competitive uncertainties and that actual results for the periods covered thereby may vary
materially from the projected results. There cannot be any assurance that the results contained
in the projections will be realised.

Apr-2019
This DPR is for limited circulation to selected recipients. It is provided on a strictly private
and confidential basis to be used solely by the recipient. It is not to be made available to, or
discussed with, any other party without the prior written consent of SPYN. No copy of all or
part of the DPR shall be made for any other purpose, and may not be disclosed to any persons
other than those to whom copies have been distributed by SPYN.

Table of contents

1. Introduction

2. Executive summary

3. Borrows analysis

4. Project details

SURVEY NO. 675, CHERLAPALI PHASE-I, SURARAM VILLAGE, AUTO NAGAR ,

HYDERABAD, TELANGANA, INDIA
This Detailed Project Report (DPR) has been prepared by CA. P.
Venkat Rao, B.Com., FCA acting in its capacity as Consultant for M/s.
Eco-Global Energy.

As of the date of this report, the Consultants confirm that to the best of
their knowledge the information and statements contained in this
Report are true in all material respects.

The purpose of this DPR is to provide information to assist the recipient

in obtaining a general understanding of the Project in order to consider
providing debt facilities to the Project. The information does not purport
to be all-inclusive or to contain all information that a prospective debt
provider may desire. It is understood that the recipient of this DPR will
perform its own independent investigation and analysis of the proposed
structure and risks involved in the Project. The information contained
herein is not a substitute for the recipient’s independent investigation
and analysis.

No representation, warranty or undertaking (expressed or implied) is

made, and no responsibility is accepted by CA. P. Venkat Rao, as to
the accuracy, adequacy, completeness or reasonableness of this DPR
or any further information, notice or document at any time supplied in
connection with the project.

The information contained herein includes certain statements,

estimates and projections made by CA. P. Venkat Rao based on his
best assessment of the anticipated future performance of the Project.
Actual results may vary from the projected results contained herein. It
should be recognised that projections of future events are inherently
subject to significant economic and competitive uncertainties and that
actual results for the periods covered thereby may vary materially from
the projected results. There cannot be any assurance that the results
contained in the projections will be realised.

This DPR is for limited circulation to selected recipients. It is provided

on a strictly private and confidential basis to be used solely by the
recipient. It is not to be made available to, or discussed with, any other
party without the prior written consent of CA. P. Venkat Rao No copy of
all or part of the DPR shall be made for any other purpose, and may
not be disclosed to any persons other than those to whom copies have
been distributed by CA.P. Venkat Rao.
 Table of Contents
Contents Page No
Executive Summary
Introduction – About the Business
Details of source of funds
Management & profile of Key Personnel
Swot analysis of the Company/Project
Present Proposal
Partners/Promoters
Project Experience of EGE
List of Customers
List of Suppliers
List of Machines and its working
Market Scenario and future outlook
Shed and factory outlook
Location Advantages
Benefits given by Government for Bio-mass Briquettes Business
Incentive from Government – ‘Subsidy’

Annexure

Contents Page No
Annex 1 : Partnership Deed of Eco-Global Energy
Annex 2 : Organization Chart
Annex 3 : Project cost comparison
Annex 4 : Profit & Loss Statements
Annex 5 : Assumptions, Cash flow and Sensitivity Analysis
Statements-Project wise
Annex 6 : Balance Sheets
Annex 7 : Repayment Schedule for Rupee Term Loan
Annex 8 : Land Documents
Annex 9 : Copies of Approvals

List of Abbreviations

EGE Eco-Global Energy

DSCR Debt Service Coverage Ratio
EBIDT Earning Before Interest Depreciation and Tax
PBT Profit Before Tax
PAT Profit After Tax
IRR Internal Rate of Return
ROCE Return on Capital Employed
DER Debt Equity Ratio
 1. EXECUTIVE SUMMARY

1.1 Name of the Borrower : M/s. ECO-GLOBAL ENERGY

1.2 Address : Survey No.675, Phase-I, Kistapur
Medchal, Hyderabad
1.3 Activity : Briquette Manufacturing
(Industrial Supply)
1.4.a Group : NA
1.4.b Associated/Allied Companies : NA
1.5 Banking Arrangements(if an NIL
existing unit) :
(sole/consortium/multiple
banking)
1.6 Asset Classification (if an NA
existing unit)
1.7.a Names of Partners / promoters Sri Piyush Bardia – Managing
Partner
Mr.Dilip Kumar Baid
1.7.b If any of them in RBI defaulters’ : NO
List

1.8. Facilities Desired:

(Amount in Rs. In Lakhs)
SL No Nature of Facility Total
1 Project Finance 1061

1.9. Key Financial Indicators for the projects

(Amount in Rs. Lakhs)
PROFITABILITY STATEMENT
REVENUE PHASE –I
Sale of Briquettes 316.80

TOTAL 316.80

Expenses
Raw Material Consumed 176.19
Consumables 4.80
Power Charges 17.14
Wages 28.57
Factory Rent 15.00
Repairs & Maintenance 3.57
Carriage Inward/outward 33.88
Derpreciation 9.56

TOTAL 288.71
Gross Profit 28.09

Administrative Exp. 3.02

Pre-operative Exp. 1.17

Profit Before Interest and Tax 23.90

Interest on Term Loan 4.42

Interest on Working Capital 1.45

Interest on Vehicle Loan 1.32

Net profit before tax 16.72

Less: Provision for tax – Exempt under section 80JJA -

Profit after Tax 16.72

1.10. Cost of Project and Means of Finance:

Amount Rs. In Lakhs

COST OF THE PROJECT
Land – Deposits for shed 4.80
Plant & Machinery
Vibrator 1.48
Flash Dryer Machine – Single pass 14.50
Briquetting Press Machine 23.73
Screw Conveyor 1.248
Vehicle – 15 Ton DCM 18.00
Misc.Fixed Assets 2.50
Pre-operative Exps 5.87
Working Capital Margin 16.79
TOTAL 88.918
MEANS OF FINANCE Amount
Equity Funds 30.108
Loan - Term Loan 30.72
Working Capital Loan 12.59
Vehicle Loan 15.50
TOTAL 88.918
2 Introduction - About the business
Many of the developing countries produce huge quantities of agro residues
but they are used inefficiently causing extensive pollution to the environment.
The major residues are Saw Dust, rice husk, coffee husk, coir pith, jute sticks,
bagasse, groundnut shells, mustard stalks and cotton stalks. Sawdust, a
milling residue is also available in huge quantity. Apart from the problems of
transportation, storage, and handling, the direct burning of loose biomass in
conventional grates is associated with very low thermal efficiency and
widespread air pollution. In addition, a large percentage of un-burnt
carbonaceous ash has to be disposed of.

A Briquetting machine allows you to compress wastes like sawdust, chips,

sugarcane bagasse and other agro-wastes into briquettes that are
environmental friendly and have high calorific value. Burning briquettes as a
fuel completes a natural cycle; on combustion they only release as much
carbon dioxide back in the atmosphere as was originally absorbed by the
growing tree during photosynthesis. Biomass briquettes can be used for
power generation or for thermal application but mostly they are used for
thermal application in industries replacing conventional fuel.

At present two main high pressure technologies: ram or piston press and
screw extrusion machines, are used for briquetting. While the briquettes
produced by a piston press are completely solid, screw press briquettes on
the other hand have a concentric hole which gives better combustion
characteristics due to a larger specific area. The screw press briquettes are
also homogeneous and do not disintegrate easily. Having a high combustion
rate, these can substitute for coal in most applications and in boilers.

Manufacturing/Production Process

Raw Material Vibrat Drier Bio-Mass

or Briquette Press
Machine

Finished Cooling Line

Product

3. Details of Sources of Funds to meet the

Promoters Contribution:
The promoters have already bought the required land-shed for the projects at
Project Location, Hyderabad with a registered lease deed of 7 years. To raise
the balance equity the individual partners are capable of bringing from their
own sources as they have been in other business for the past 15-20 years
and they have sufficient sources to fund the project to the extent of Promoters
contribution.
4. Management and profile of key Personnel:

Promoters

Mr. Piyush Bardia, is the Managing Partner in the company. He has

ungergone training in the briquette manufacturing company – “Ecostan” for 3
months in all departments i.e., Raw material management & procurement,
Labour management, Briquette Machine Operations and Prospective Market
Scenario etc.

Qualification: B.Com Computers, Pursuing MBA

Work Experience: He has worked as sales executive in Refac Corporation for

2 years.

Mr.Dilip Kumar Baid, is the other partner in the company. He is into the field of
Manufacturing of Flexible Laminated Film Rolls and is having an experience
of more than 30 years in the present field. He is currently working as
managing partner in M/s.Krishna Marketing – ‘Manufacturers of Flexible
Laminated Film Rolls’. He is one of the reputed personalities in the area of
Printing of Flexible Laminated Film Rolls and his experience will be used by
the firm. Further, his marketing skills will be used by the firm as he has good
relations with the confectionary industries and Briquettes are used widely in
these Industries.

Skilled /Techinal Personnel’s:

Mr.Vasudev being the technical person in the company.

Work Experience: He worked as an operator in Briquette Manufacturing

Company (Woodstock – Jeedimetla) for a period of 16 years.

Mr.Vijay Pandey and Mr.Sukhdev being the skilled person in the company.

Work Experience: They worked as Raw Material Procurement manager in

Briquette Manufacturing Company (Woodstock – Jeedimetla) for a period of
16 years.

5. SWOT Analysis of the Company / Project:

1. STRENGTHS:

 Adding value to the use of biomass.

 Stronger Focus on drop in chemicals facilitating market
penetration.
 Briquette is the direct replacement of coal, diesel and
gas.
  Biorefinery is not new, it builds on food, furnace and
paper industry etc.
 Production of a spectrum of bio-based products and bio-
energy.

2. WEAKNESSES:

 Variability of quality and energy density of biomass.

 Studying and concept development instead of real market
implementation.
 Most promising biomass value chains, including
current/future market volumes /prices not clear.

3.OPPORTUNITIES:

 Biorefineries can make a significant contribution to

sustainable development.
 Challenging national and global policy goals, international
focus on sustainable use of biomass for the production of
bioenergy.
 International consensus on the fact that biomass
availability is limited meaning that raw materials should be
used efficiently as possible – i.e., development of multi-
purpose biorefineries in a framework of scarce raw
materials and energy.
 Strong demand from brand owners for Biomass
Briquettes.

4.THREATS:

 Availability and contractability of raw material.

 Changing government policies.
 Economic changes and volatility in fossil fuel prices.

6. Present Proposal:
EGE has planned for setting up the plant of Bio-mass Briquette. The
aggregate cost of the project is Rs. 88.918 lakhs which is to be met by the
following sources.
Particulars Total
Equity-
30.108
Promoters
-Rupee Term
Loan (Project 30.72
Loan)
-Rupee Working
Capital Loan 12.59
(Project Loan)
-Rupee Vehicle
15.50
Loan
Total 88.918

The purpose of this DPR is to seek Rupee Term Loan of Rs.58.81 Lacs as
part of the project cost.

7. Partners/ Promoters:

SL Name Age Designation Qualification Other Directorships

No.
1 Sri 24 Managing B.Com None
Piyush Partner (Computers),
Bardia Pursuing MBA
2 Mr.Dilip 57 Partner B.Com Managing Parter in M/s.
Kumar Krishna Marketing
Baid

7.1 Organization
7.1.1 Key Management Personnel
Sri Piyush Bardia Managing Partner

Mr.Dilip Kumar Baid Partner

8. Project Experience of EGE:

As mentioned earlier the Promoters of EGE has undergone taining in
Briquette Manufacturing Company and has vast experience.

9. List of Customer’s:
A) Dolphin Foods Limited
B) Kayempee Foods
C) Navkar Industries
D) Singhania Printers
E) Remedy Health Products Private Limited
F) Ambika Food Products
G) Doctor Reddy Laboratories
H) Coca-cola
I) Vishnu Bricklines
10. List of Supplier’s
A list of few supplier’s have been pen down below as the same posses an
exhaustive list.

A) Laxmi Pack Wood

B) Uday Timbers
C) Madhuri Timbers
D) Karunya Timbers
E) S.K.Saw mill & Timber depot
F) Patidhar Timber Mart

11. List of Machines and its working:

a) Vibrator:
Vibrating machine consists of wire netting which always vibrates at the
time of running of plant. The raw material is screened as per the
requirements of in-feed size and make a free from Iron, nails etc.
Screened material is transported to the machine with the help of screw
conveyors.

b) Flash Dryer:

In case material has excessive moisture a dryer is essential for

continuous drying of material (cut or granulated) to the required limits.
Flash Dryer is a pneumatic system primarily used to dry raw material. It
reduces moisture content up to 25%. It is used for any kind of forest or
agro waste material.

It consists of conveyors equipment to clean and transport raw material

from feed point to the bin system, with the help of furnace heat is
generated for drying. Drying takes place in matter of seconds. Wet
material is dispersed into a stream of heated air which conveys it
through a drying duct.

c) Screw Conveyor:

The screw conveyor is used for conveying or transporting the material

from the feeding end to discharge end. Tempered verms are used for
long life of conveyor. Automatic drive is provided for adjustment of the
speed of material feed.

d) Briquetting Press Machine:

The Briquette Machine is a crank type mechanical press with two
flywheels. One flywheel is driven by the main motor through a
continuous flat belt along with other. Cooled and Filtered lubrication oil
is supplied by the pump through pipes which circulates the system
 guarantees a long and smooth service life to the machine. Material is
continuously fed through flexible pully/drive fitted with motors. From
feeding chamber material is compressed by ram through taper bore
die. Briquettes come out from cooling line.

12. Market Scenario and Future outlook:

a) Due to global warming, world wide people get carbon credits to those
who use alternative resources of energy rather than burning of fossil
fuels which is the major source of greenhouse gas omission.

A carbon credit is a generic term for any tradable certificate or permit

representing the right to emit one tonne of carbon dioxide or the
equivalent amount of a different greenhouse gas.

The goal is to allow market mechanisms to drive industrial and

commercial processes in the direction of low emissions or less carbon
intensive approaches than those used when there is no cost to emitting
carbon dioxide and other GHGs into the atmosphere.

b) This being a direct replacement of diesel, coal, gas it acts as a

renewable energy resource and cost effective for many companies.

c) Raw Material – ‘Saw Dust’ provides the maximum calorific value (i.e.,
Yield).
Calorific Value – the energy contained in a fuel determined by
measuring the heat produced by the complete combustion of a specific
quantity of it.
In simple terms, it gives more burning capacity per 1000 kilo calories
when compared to other raw materials like ground nut shells, rice husk
etc.

d) No pollution certificate is to be obtained from Pollution Control Board

(PCB). It has low ash content of 2% to 10% as compared to 20%-40%
in coal.

It is Non-polluting as it does not emit any sulphur or phosphorus fumes

and fly ash.

13. Shed and factory layout:

Approximate area of the shed required is 7000-8000 square feet, where

the manufacturing process will be carried out and finished goods will be
stored.

In addition to the shed, an open area of 600-800 square yards is required

for drying the raw material as the moisture content to be present in
briquette is ranges between 8%-13% and the moisture content available
 in the raw material ranges between 18%-25% depending on the climate
conditions and other various factors.

By drying the raw material under sunlight the use of dryer can be avoided
which will in turn bring down the manufacturing cost.

14. Location advantages:

All the major raw material suppliers are located within a range of 50-60
kms having a supply of 70% raw material.

Raw Material will be procured from various timber depots located in

Musheerabad, Nagaram, Nacharam, L.B Nagar, Kothapet, Ballapur,
Uppal, Patancheru, Miyapur, Bowenpally, Kukatpally, Moosapet, Medchal,
Kompally etc.

15. Benefits given by Government for Bio-mass

Briquettes Business:
a) 100% Income Tax free for the first five years.

b) 80% depreciation on capital cost in the first year itself.

c) Energy being a priority sector and considering the cost of the project,
benefits of both priority and SSI sector are available.

16. Incentive from Government – ‘Subsidy’

We are aware of the subsidy given by the government for this business.
We are not sure if we will be able to receive the same or not.
ECO-GLOBAL ENERGY

PROJECT REPORT
FOR
MANUFACTURING OF BIO-MASS
BRIQUETTES
@
AUTO NAGAR, HYDERABAD