clean coal solutions limited - capturing values from innovation business plan round-2 pan india...
TRANSCRIPT
Clean Coal Solutions Limited- Capturing values from Innovation
Business Plan Round-2PAN INDIA Business Contest
Chennai
Registration ID- S28229
Team leader
Ashiwani Kumar GuptaVisionary Leadership in Manufacturing
IIM CalcuttaPh - 09204058189
e-mail – [email protected]
SAIL
TATA STEEL
JSW
JSPL
ISPAT
ESSAR
MITTAL
POSCO
Others
20 MT
20 MT
18 MT10 MT
6 MT
8 MT
12 MT
12 MT
4 MT
Coking Coal Matrix – 2018 Perspective
Total – 110 MT
OPPORTUNITY WINDOWWidening Demand-Supply Gap of Coking Coal
0
20
40
60
80
100
120
140
2006 2008 2010 2012 2014 2016 2018 2020 2022
YEAR
MIL
LIO
N T
ON
DEMANDSUPPLYLinear (DEMAND)Linear (SUPPLY)
Elevator PitchCurrent Scenario:• Coal adds up 30-40 % of cost of steel produced.• Rapid escalation of imported coal price• Scarcity of superior quality coal in India (high ash content of up to 35%)• Existing chemical beneficiation process only achieves ash to 15%• Resorting to import of coal from Australia and chinaOur Proposition:We have devised innovative Chemical Solution to reduce the Ash content down to 8-9%, which is comparable to Australian Coal (considered the best in the world).
Mission Statement “Our mission is to provide chemical
solution for coal benificiation process for the domestic steel industry towards attaining self reliance and satisfaction through employing quality practices and services”
Vision StatementTo become market leader in providing cost effective innovative chemical solutions for mineral processing industries
Business Concept
Value Proposition: Self Reliance in raw materials – Coking Coal
Key Products/Services:
Coalfroath
Differentiation: Only Chemical to bring down the ash content to 9-10
%
Business Model
Inbound Logistics
Outbound Logistics Operations
Marketing and Sales
ProcurementServices
Product Development
CCSL
Leadership Position
SWOT AnalysisSTRENGTHS
Innovative product, first of its kind Highly effective in reducing the ash contents of the coal, hugely
cost effective, resulting in huge savings for the organization using the coal
Huge demand of coal in the country due to ongoing large number of projects in all major sectors, particularly in Steel industry
Infrastructure requirement is very less for set up of the plant Availability of raw material for producing the chemical solution Technical Competency of the people of the organization Participants are completing Visionary Leadership in
Manufacturing from IIM Calcutta
WEAKNESSES Lack of funds for setting up the
plant Lack of experience in setting up
the plant Lack of experience in running of
the plant from top management’s view
OPPPORTUNITIES Huge opportunity to capture the current market of Steel Industry Cater to the future requirements of coal with less ash content for
various industries in particular Steel Industry Operations can be expanded to the global level to capture the
demands of coals in other countries
THREATS As per the present situation since
it is a innovative chemical solution it has no competition per say in the market.
Reduction in the import duty from coal imported from Australia which has similar ash content
Sales/Marketing Strategy
Advantage – Only Alternate Chemical
Compatibility – Coal Beneficiation Process
Complexity – Blended Chemical
Observability – Successful Result to support
Riskiness – No risk Involved
Divisibility – Gradual Market Penetration
The Management Team
CEO – Mr. A. K. Gupta
Management VP (Operations) – Mr. S N Lenka VP (Commercial) – Mr. Anand V. R.
Chemical: Research and Development in Raw material beneficiation for Integrated Steelmaking Process, 6 Years
Metallurgical: Research and Implementation in Iron and Steelmaking Processes, 7 years
Mechanical: Planning and Supply Chain Management in petrochemical Industry, 6 years
Resource Requirements
Technology Requirements:
Blending/Mixing Technology Personnel requirements:
Technicians and Logistics Resource requirements:
Financial External requirements:
Networking and Sales
Organization Structure
CEO
VP- Commercial VP – Operation
Raw Material Sales and FinanceProcess Business Development
LegalQuality
Human Resource
Financials - 1Type Details INR NotationsInput Cost Material Cost 9600000 A
Operating Cost Utilities 2000000 B
Labor & Mgt Cost 500000 C
Capital Cost (Fixed) Land 2000000 D
Licensing 100000 E
Infrastructure 700000 F
Machinery Cost 2000000 G
Promotion & Selling Marketing 500000 H
Transportation 400000 I
Packaging 150000 J
Total Initial Cost K=(A+B+C+H+I+J) 13150000 K
Manufacturing cost per Litre
285.50L
Financials-2: Lifecycle
Capital
Input Cost
Operation
48
Promotion
144
169
179.5
Lakhs
Stages
-80
-40
0
40
80
120
160
200
2008 2009 2010 2011 2012 2013 2014 2015 2016
Years
LIA
BIL
ITY
,L
akh
s
CCSL: Break Even Profile
Break-Even:5 Years
Project: Innovative Chemical for reducing Ash content of Coal
Where we are :-
Start of the venture
Where we want to be:
Industry leader in supplying innovative chemical solution, & continuously improving on the solution
How we will get there :- By marketing aggressively the product to major Steel Industry manufacturers, convincing them about usefulness of the product & huge cost saving benefit it will cause to the steel industry. By remaining profitable we will grow organically to cater to future markets.
Gaps
Project: Innovative Chemical solution for reducing aash contents of coal
Scenario: Reduction of import duty of coal imported from Australia which is superior to coal extracted from Indian mines
Risk Factor: Reduction in business by 40%
Probability of Occurrence : c Very low ●●c Low c Medium c High c Very high
Level of Consequences : c Very low c Low c Medium c ●●High c Very high
Prevention Actions:•Cost cutting by process innovation •Assurance of uninterrupted supply of chemical solution to customers•Long term contract with customers•Reducing the price to such an extent that it will be always beneficial to use the chemical solution to process on the coal from our own mines, so the end price of the coal will match the price of imported coal
Risk Assessment Analysis - 1
Risk Factor #2: Similar Innovation by competitor
Description of Risk: Competitor has come up with similar or more innovative chemical solution which will reduce the ash content still furtherProbability of Occurrence: c Very low ●●c Low c Medium c High c Very highLevel of Consequences : c Very low c Low c Medium c●● High c Very high Prevention Actions:Reducing the price so as to fight with the competitorBetter coordination with the customers for continuous supply of solutionFurther product innovation, finding another new chemical solution which will reduce the ash content further)
Risk Assessment Analysis - 2
Exit
Market Capitalization: 60 % in 7 Years Break Even Point: 5 Years Public Issue:
- Expansion Strategy after 3 years of start-up Potential Acquirers: Steel Manufacturing
Industries in India
Thank You