new agro-biogenics (clean-tech) private limited joint … · 2010. 12. 11. · agro-biogenics...

AGRO-BIOGENICS (Clean-Tech) Private LimitedJOINT VENTURE FOR COMMERCIALIZATION OF APIX-SEP

INTRODUCTION

AGRO-BIOGENICS [short name for AGRO-BIOGENICS (Clean-Tech) pvt Ltd] views the “desperation for energy and materials” of the Developed world [almost 100% of those nations are in temperate zone, and are of European origin] as wrong inference. This “shortage” theory is borne out of a limited view of the world – that of viewing all human activities within the kaleidoscope of materials and resources based on temperate zone regions of the world. However, if we were to look at the world materials resources [mainly the Renewable Resources(RR) in the form of vegetation, plants and animals] in entirety, we should be able to have the satisfaction that the RR in the Tropics would be able to support almost the entire world population of nearly 7 billion, as well as the same capable of supporting much more populations! Let us consider just one example of a RR specie – THE COCONUT Tree and its resources.

It would be observed that the entire coastal regions are the places where coconut grows in

(CIN: U74900KA2010PTC054826 of 2010 - 2011) No.2, Vinayaka Circle, 2nd Floor, S.J Patel Complex, Malleswaram, Bangalore – Karnataka – India – 560003 1

AGRO-BIOGENICS (Clean-Tech) Private Limitedplenty. The estimated area would be approximately 210,000 sq km. It is further estimated that India would have not less than 1,500,000,000 coconut trees. An average coconut tree has a productive life of not less than 60 years. Thus, if we were to consider that each tree could be “felled” every sixty years, the number of coconut trees RR in India would be 25,000,000. On the basis of “dry weight” of these basic Tree resources alone @ 500 Kg per tree, India's RR in the form of coconut trees would be a whopping 12,500,000 Tons! Here we have not considered the annually available RR in the form of Coconuts and other vegetation materials that each coconut tree offers. If these annual resources were also to be considered in entirety, the Total RR materials based on Coconut trees all over India would be 75,000,000 + 12,500,000

Let us look at the possibilities:

1. We shall look at a scheme whereby 50% of the 75 million T annually recurring tree resources such as coconuts and other materials are converted into energy. When converted such that both Electricity and Heat are available through CHP methods, the estimated Power would be: 22,800 MW [The balance 50%, being 37.5 million T, are available for other consumer needs!]. NOTE: India's power, as on date, is short by about 30,000 MW. It is noted that conversion of 50% of the Coconut annual RR alone would solve almost all this deficit problem

2. The 12.5 million T “felled trees” resources could be converted into Composites based Wood-substitutes. If the composites constitute about 65% of the tree materials, the total volume of Wood substitute products are of the order of 19 million T [which would replace about 40 million cu m of regular wood – saving not less than 2 million ha of Timber annually] … NOTE: India now consumes about 90 million cu m of wood; about a third of these are imported. Thus, the conversion of Coconut tree resources would need no import at all, and we could be a net exporter!

Coconut tree and its resources are just One of the resource species in a country like India. A few of the other such RR species are: Areca palm, Palmyra palm, Jackfruit tree, Banana tree, Mango trees, Tamarind trees, Shrub trees, and many others (over 500 species); other such RR materials are grasses, water hyacinths, and various unused and unclassified weeds (over 5,000 species). It is to be recognized that all of these “original” species would grow without any fertilizers or any special tending!

AGRO-BIOGENICS estimate that India would have, by way of various unused non-forest Plant/ Tree species alone, RR to an extent of 3,000,000,000 T. Such volumes of vegetation based RR materials have not been thought of as useful RR at all, although common sense should make us look at these as the cheapest and the most optimum resources.

There are 160 tropical nations, in which 135 nations are within the real tropics and the rest are on the tropics fringes. All these regions are as much resource rich as India is [a few may have greater volumes per ha than India (Indonesia, Philippines, Venezuela and Myanmar are examples of such higher resource nations)]. It is strange that almost all of these 160 tropical


AGRO-BIOGENICS (Clean-Tech) Private Limitednations are extremely poor, and starve for Power, water and most other human needs! Stranger still is the fact that almost all of these regions are endowed with huge sunlight, rain/ water and both vegetation and animal species.


AGRO-BIOGENICS (Clean-Tech) Private LimitedTHE CONCEPT OF AGRO-POLYMER INDUSTRY COMPLEX (APIX)

THE NEXT BIG-THING (TNBT) is not the sophisticated explorations and voyages to Pluto or to the Stars nor the specialty robotic gadgets or genetically modified cells in micro-bio-technology; but it would be the New Business Paradigm that simultaneously answers GLOBAL WARMING and POVERTY (GWP). The “on-the-ground” development would be brought about through sustainable development and utilization of available Renewable Resources (RR). This results in the said new business paradigm: ZERO-WASTE ZERO-CARBON


AGRO-BIOGENICS (Clean-Tech) Private LimitedBUSINESS-MODEL (ZW-ZC-BM). The practical conversions are based on processing available RR, in the forms of Vegetation/animal/human resources + sunlight/rain/air.

The illustration preceding the last paragraph depicts the overall concept of AGRO-POLYMER INDUSTRY COMPLEX (APIX). It is an “all-encompassing” Closed-Loop system of interconnected processes involving Agriculture, Farming, Non-farm vegetation systems, Sunlight, Rain and local animals and manpower. The resultant operations would generate the following: Bio-based Energy (both electricity and heat); Engineered Alternate Materials; Alternate Bio-based Petrochemicals; Biofertilizer; Sustainably processed Food based on Local resources; Biowater. It is estimated that in a country like India, an average 1000 Ha based APIX system would have the following potentials:


AGRO-BIOGENICS (Clean-Tech) Private Limited1. Bio-based Energy (both heat and electricity) … 1.65 MW (24 x 360)2. Engineered Alternate materials …........................ 2,875 T3. Bio-Petrochemicals ….............................................. 1,750 T4. Biowater …............................................................... 15,400,000 L5. Biofertilizer …........................................................... 800 T6. Processed Foods …................................................... 2,000 T

[NOTE: The on-the-ground situations would vary in different places; and these would depend on the ecology, climate and other surrounding conditions. Thus, the final volumes of the different “value-added” materials could range between twice the above quantities and half of the same. A noteworthy fact is that about 2,500 local personnel would have direct and full time employment in each such APIX_1000]

AGRO-BIOGENICS have studied and developed certain processes in the totality of APIX, in the southern Indian peninsula. The findings have been extrapolated to an “all-India” level.

S. No. State

Forest Cover, % of Geographical area, based

on the Satellite Data of 1998-99

Non-forest area available for APIX set up @ 33% or

Optimum (in sq. k.m)

Number of 1000 Ha APIX set up

1. Andhra Pradesh 16.08 91, 700 9, 1702. Arunachal Pradesh 82.21 16, 800 1, 6803. Assam 30.20 27, 000 2, 7004. Bihar 15.23 38, 000 3, 8005. Delhi 5.93 --- ---6. Goa 33.79 1, 700 1707. Gujarat 6.61 78, 500 7, 8508. Haryana 2.18 22, 000 2, 2009. Himachal Pradesh 23.50 25, 000 2, 50010. Jammu & Kashmir 9.20 --- ---11. Karnataka Not Available (= < 29%) 76, 000 7, 600

12. Kerala 26.56 23, 500 2, 350

13. Madhya Pradesh 29.73 185, 000 18, 500

14. Maharashtra 15.17 185, 000 18, 500

15. Manipur 77.86 5, 580 558

16. Meghalaya 69.70 7, 500 750

17. Mizoram 86.99 3, 400 340

18. Nagaland 85.43 2, 650 265

19. Orissa 30.21 70, 000 7, 000

20. Punjab 2.80 25, 000 2, 500

21. Rajasthan 4.03 135, 000 13, 500

22. Sikkim 43.94 3, 200 320

23. Tamil Nadu 13.13 85, 800 8, 580

24. Tripura 54.79 4, 200 420

25. Uttar Pradesh 11.55 157, 500 15, 750


Recycled back

AGRO-BIOGENICS (Clean-Tech) Private Limited26. West Bengal 9.42 58, 600 5, 860

27.Andaman & Nicobar Islands

92.21 --- ---

28. Dadra & Nagar Haveli 41.14 --- ---

29. Daman & Diu 2.68 --- ---

30. Pondicherry No forest area --- ---

31. Chattisgarh Not available 61, 200 6, 120

32. Jharkhand Not available 35, 900 3, 590

33. Uttaranchal Not available 24, 000 2, 400NOTE: The estimated All-India APIX_1000 (based on 1000 ha village areas covered per APIX) = 144,493 projects. Over 350 million village personnel would have direct and full time employment; an equal number would have indirect employment

The different APIX_1000 would be “clusters” of smaller projects; an estimated minimum of Four villages would be involved in each APIX_1000. These projects are named: AGRO-POLYMER INDUSTRY COMPLEX-SUSTAINABILITY ENGINEERED PROJECTS (APIX-SEP). The following All-India potentials are the minimum value-added product systems:

1. Processed Foods …........................................................ 290,000,000 T2. Power production (Electricity and Heat) …............... 238,400 MW3. Alternate Engineering materials …............................. 415,400,000 T4. Bio-Petrochemicals …..................................................... 252,850,750 T5. Biofertilizer …................................................................. 115,590,400 T6. Biowater …...................................................................... 2,225,192,200 cu m

[The estimated “current” values of these productions would be about US $1.25 trillion]

It may also be noted that these Resources based generation of Energy and Engineering materials are produced independent of the “mainstream” economic activities; and these occur in the 638,000 villages of the nation, almost all of them are dilapidated and in wretched conditions now!

An OBSERVATION:

The world today needs these types of development more than any other. The current euphoria to look at the so-called “energy crisis” in a biased manner takes us to a negative form of development, whereby none of these systems would have any impact on the 4.5 billion poorest people in the world. Instead, these “Green” and “Cleantech” projects would only cater to less than 2 billion people, who have the capacity to “buy' them and enjoy better livelihood conditions … the “others” being relegated to even more wretched conditions, as almost all these “new” developments would have “greater real costs' than anything available now! AGRO-BIOGENICS, is working on the new ZW-ZC-BM, and are looking toward commercializing the concept pf APIX-SEP, through a Pilot Project in India … to be named: APIX_PILOT


AGRO-BIOGENICS (Clean-Tech) Private LimitedAPIX_PILOT

ZERO-WASTE ZERO-CARBON BUSINESS-MODEL (ZW-ZC-BM)

Name AGRO-BIOGENICS (Clean-Tech) Private LimitedCountry: IndiaCompany Website http://www.agro-biogenics.com/Index.htmBlog http://zerowastezerocarbon.wordpress.com/Year of Establishment August, 2010Registration Number U74900KA2010PTC054826 of 2010 - 2011Industry Clean Technology [Energy, Engineering materials, Recycling, Bio-

petrochemicals)Phone Number 91 80 32929584Contact person Hariharan PV (Chief Mentor & Promoter)Address No.2, S-2, ROHINI, Syndicate Bank Colony, Off_Magadi Road

Prashanth Nagar (Basaweshwar Nagar Post)City BangaloreState KarnatakaPostal Code 560079Logo

Management Team

Sr No Salutation First Name Second Name Title/

AppellationExperience

yrs Background Fields/ Subjects/ Remarks

1 Mr Hariharan P. Vaidyanathan CMP & MD 38 Mech.Engi-neer BTech

Engineering, Industry, Tech. Products Development,

Entrepreneur

2 Dr. Pilaka Murty Director 35PhD Mech Engineer Professor

Engineering, Academics, R & D (India and US)

3 Mr Mohan Das Director 35 MS (Chem) Scientist Wood Science, R & D Industry

4 Ms Lalitha Krishna Director 20 Sociology Graduate

Social Projects and Management

5 Mr Anand Kumar Director 20 Engineer BTech Engineering & Infrastructure

6 Mr Vaidyanathan Hariharan Director 5 BS (Chem); PGDCA

Administration and Liaison operation

BUSINESS PLANS & STRATEGY


AGRO-BIOGENICS (Clean-Tech) Private LimitedMain Thrust Closed-Loop Zero-Waste Zero-Carbon Business-Model (ZW-ZC-BM): Energy, Engg. Materials,

Bio-Petrochemicals, CO2 Sink: the FUTURE MEGA-BUSINESS

The Business ZW-ZC-BM set up at field level, through AGRO-POLYMER INDUSTRY-COMPLEX-SUSTAINABILITY ENGINEERED PROJECTS (APIX-SEP). Available Renewable Resources (RR) converted to: Energy, Engg. Materials, Bio-petrochemicals and processed foods. Village cluster industries using 1000 ha area RR (APIX_1000) could generate $20 M businesses each. India has $2 trillion potentials. APIX_Pilot to showcase $200 M businesses in 6 yrs, on $2.1 M investment & 300% ROI

The Team experience

Most Team members having 35+ yrs experiences in various fields: Engineering, Polymer Technology, Composites, Carbon Sequestration, Adhesives, Coatings, Corrosion technology, Renewable Resources and Alternate Energy, Agro-Resources and Biogas systems, New Products developments, Industry Setting up from concept, Small industries management, and Social businesses. Chief Promoter having worked/ developed the concepts for over 20 yrs

The Customer “PROBLEM”

Global Warming & Poverty (GWP) affect 160 nations; poverty compels people to migrate; high energy cost, scarcity of human material needs; environment degradation: these interrelated problems addressed

The “SOLUTION” GWP answered, through APIX_1000 clusters, effecting non-fossil RR based integrated businesses in Energy, Engg. materials, chemicals, fuels, fertilizers and water. Local people get jobs locally. APIX_Pilot to showcase these AGRO-BIOGENICS technologies, attracting new entrepreneurs worldwide. Hundreds of Joint-ventures would be promoted, to set up APIX_1000 clusters; 150000 clusters in India to answer development needs

The MARKET India's market defined based on RR availability: 100000 MW Power; 100 Million T Bio-petrochemicals; 100 M T Engg. Materials; 500 M T processed foods; 400 M jobs. 635000 villages (average cluster within 4 villages) would be benefited. All other tropical nations have various potentials, based on available RR. Total world potentials estimated @ $4 trillion. APIX_Pilot would produce a fraction of these; planning over $10 billion in 12 yrs

CUSTOMERS APIX_1000 projects aim at hundreds of potential New Entrepreneurs in 160 nations. APIX_Pilot products Customers are households, commercial industries in a about ten Cities in India, out of 600 + cities/towns

Sales and Marketing strategy

Two Products systems: APIX_1000 clusters and Manufactured products. The former to be marketed through interactions at Government Development institutions (direct marketing & Conference Invitees). Invited audiences to be Officials and entrepreneurs. Product marketing through regular distribution/ sales channels for the individual product systems. Sales personnel would be trained from local villages through training and commission-incentives

BUSINESS-MODEL Main Business-Model: Joint-Venture Partnerships elicit 49% stakes for technology, reducing stakes to 19% through “buy-back” in 5th yr. The other: Owned manufacturing earns through products sales

COMPETITION & COMPETITORS

Clean-tech ventures: ZW-ZC-BM that is implemented by all-encompassing APIX-SEP does not seem to have immediate Competitor; the nearest is the “Bio-Refinery” conceived by NREL, US: http://www.nrel.gov/biomass/biorefinery.html which is “energy-centric”, without other value added products; This APIX_Pilot Products compete with regular Crockery/ Melamine Crockery, Wood substitute Doors, and Chemical fertilizers

Competing Advantages and BARRIERS to entry

Joint-ventures offer FREE Know-how, continual Tech. support and patent rights transferred; individual products being patented; GREEN Certifications would be obtained; both form entry barriers. Products/ Technology/ Business form disruptive models

Long term STRATEGY and developments

The long term objective is to spread APIX-SEP all over India and worldwide, setting up hundreds of APIX_1000 clusters. Estimated potential in India alone is over 150,000 APIX-SEP units generating: 100,000 MW power; 500 M T processed foods; 100 M T bio-petrochemicals; 100 M T Engineered products; 300 M Cu. M of Bio-water -total values over $3 trillion. Every other tropical country would have various range of potentials


http://www.nrel.gov/biomass/biorefinery.html

AGRO-BIOGENICS (Clean-Tech) Private LimitedJOINT-VENTURE POTENTIALS

ESTIMATED WORLDWIDE BUSINESSES OVER SIX YEARSTarget Year APIX_Pilot Primary units Sub-units Total Turnover ($) Total Net Profit ($) Agro-Biogenics ($)

2012 1 --- --- 9, 000, 000 1, 500, 000 1, 500, 0002013 1 --- --- 14, 000, 000 2, 500, 000 2, 500, 0002014 1 --- --- 29, 500, 000 5, 500, 000 5, 500, 0002015 1 9 --- 59, 400, 000 9, 241, 387 9, 196, 2902016 1 9 --- 180, 528, 339 33, 355, 909 26, 292, 352.2017 1 9 --- 226, 270, 750 43, 359, 577 31, 446, 1932018 1 9 81 480, 020, 688 71, 602, 422 45, 285, 187

Total 91 units 998, 719, 777 167, 059, 295 121, 720, 022

NOTE: Each Joint-Venture Partnership would be between the Venture partner and Agro-Biogenics (@ 49% equity initially to AGRO-BIOGWENICS, diluted to 19% in 5 th year). Each of the Primary Units would enter into Joint-venture Partnerships with the Sub-Units down the line … in the same manner


AGRO-BIOGENICS (Clean-Tech) Private Limited

Business Stage & Financial Summary(Estimated)

Company Stage Prototype readyCurrency shown US Dollar ($)Promoter Equity 42, 300Monthly net burn 204, 750 (Yr 2 operation, 2012)Cumulative Turnover $199, 000, 000 in Six years operations, starting 2011Positive Cash Flow Positive from year 1 (2011). Cumulative Gross Cash Flow = $35, 702, 945 Additional Investments made

Investments, to enhance Production from original level to six times value, made in year 3, 4 and 5; Total invested (from reserves) = $4, 583, 333

Premoney value 4, 900, 000Future Value $2,150,400,000 … after 6 years (datum from year 2)Capital sought 2, 083, 333Exit offer out of $2,083,333, $416,667 to be Redeemed Preference shares at $1,041,667 in 5 years;

balance @ 8% Debt repaid in 5 yrs; Investor offered 30% stake

Financial Forecast

YEAR Sales/ Revenue Expenditure/ Outgo Net Profits2010 0 100, 000 (-) 100, 0002011 1, 399, 843 1, 390, 018 9, 8252012 9, 080, 926 7, 542, 025 1, 538, 9012013 14, 030, 080 11, 434, 570 2, 595, 5102014 29, 624, 520 23, 979, 345 5, 645, 1752015 46, 886, 220 37, 733, 260 9, 152, 9602016 98, 885, 280 79, 379, 480 19, 505, 800

VENTURE-CONTEMPLATION INSTEAD OF A CONCLUSION!THE NEXT BIG-THING (TNBT) is not the sophisticated explorations/ voyages to Pluto or the Stars nor the robotic gadgets or genetically modified cells in micro-bio-technology; but it would be the New Business Paradigm that simultaneously answers GLOBAL WARMING and POVERTY (GWP). The “on-the-ground” development would be brought about through sustainable development and utilization of available Renewable Resources (RR). This results in: ZERO-WASTE ZERO-CARBON BUSINESS-MODEL (ZW-ZC-BM),that would simultaneously mitigate Global Warming and Poverty (GWP), through Self-Regenerative Recycling (SRR), using available RR

A FEW DETAILS ON BANANA STEM WASTES AND CONVERSIONS

1. One “Full Size” South Indian Banana Stem/ Tree has about 50 Kg (green weight) average2. Each such average banana tree would result in: 5 Kg Fibers (dry) + 2.5 Kg Organic Solids (dry) and 42.5 Kg

water (about 28.5 Kg are recoverable)3. The 50 Kg size Banana stem/ tree is available at site for US $0.833. This would mean that a Kg of the dry

fibers are worth $0.166 (assuming there is no value for either the other Organic solids and water)4. Each Kg of Molded Crockery would be a composite of the following: Banana Fiber = 0.454 Kg + Specialty

Polymer = 0.454 + Inorganic Inert materials/ non-toxic Industrial Wastes = 0.092 Kg (Thus, every Kg of dry fiber would become 2.2 Kg of Crockery!)

5. We do not sell Crockery by weight! Instead, these are put inside excellent Packaging systems, with “Usage & care” pamphlet inside and also a pamphlet that would help the home maker know something about Cookery. All in all, these are sold as Dinner Sets, Tea/ Coffee Sets and the like. One such Set would have 4 Full Plates, 4 half Plates 4 Cups and 4 Saucers (weighing about 2.05 Kg, net), Sold to the Market @ $23.49


AGRO-BIOGENICS (Clean-Tech) Private Limited

PROJECT FINANCE NEEDED (US $)

1 Initial Expenses and Company formation etc …................................. 43, 4802 Land arrangement (leased out Total 3 Acres) …................................ 108, 7003 Site preparation, buildings and office ….............................................. 326, 0904 Plant and Machinery, auxiliaries and Power systems …..................... 913, 0505 Other Imponderables (12% of all above) …....................................... 166,9606 TOTAL FIXED CAPITAL ….......................................................................... 1, 558, 2807 First year working expenses …................................................................ 567, 3308 TOTAL PROJECT CAPITAL …....................................................... 2, 125, 610

The following “returns” and incentives are planned to be offered to the INVESTORS:1. Investors who bring in the total Funds of $2, 083, 333.33 would be offered 30% stake in the Promoter

Shares of the Co2. Up to 50% of the Total Company's authorized shares (invested by the main promoters) would be Pledged to

the Investors (on prorata basis), to be “released” as soon as the repayments are cleared as agreed up on. These pledges would be through “Charge creation” with the Registrar of Companies, as per the Companies Act

3. Values, to an extent of $416, 666.67 would be offered Redeemable (and partly convertible) PREFERENTIAL Shares; redeemed @ a value of $1, 041, 666.67, if full shares are to be Preferential

4. The Fund investors (opting for this arrangement) would be offered Special Director Posts (with Powers to involve in Financial management and also in the appointment of managerial personnel)

5. The 30% Promoter Stakes would continue to be enjoyed by the Fund Investors, even after the repayments are over (planned to be within 5 yrs)

6. Dividends are offered as per Share-holdings 7. Director Perks would be offered 8. The overall Returns expected are: Investments = $ 2, 083, 333.33; Moneys retrieved within 5 yrs =

$6,500,000 (312%)9. Premoney Valuation = $4, 900, 000

THE FINANCIAL PROJECTIONS (APIX_PILOT)

ASSUMPTIONS:

1. All computations made in Indian Rupees 2. Banana Stems are purchased @ $8.35/T3. The following effective production are noted, on the basis of 6000 hours of annual operations:

i. Banana Fiber substituted Crockery ….............................. 110 Tii. MS DOORS (wood Substitute Molded Doors) ….......... 7360 T (327, 111 numbers)iii. Biofertilizer (solids) …........................................................... 338.33 Tiv. “GREEN” Sulfur ….................................................................. 7.5 T

Increments above this level would be on “prorata” basis 4. Effective Annual productions: (Energy systems operate at 50% level in year 1) ...Production to Double in 4 th

yr; treble in 5th yr and sixfold in 6th yrDescription Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Shifts 1 3 3 3 3 3Effective days 100 300 300 300 300 300Effective hrs 600 4000 6000 6150 6300 6450Crockery (T) 11 73.33 110 225.5 346.5 354.75

MSD (T) 736 4906.67 7360 15, 088 23, 184 47, 472Biofertilizer T 169 225.55 338.33 714.38

Sulfur (T) 3.75 5 7.5 15.375. Estimated Raw materials and Resources input: The following are needed (from yr 3) … yr 3 costs escalate @


AGRO-BIOGENICS (Clean-Tech) Private Limited3%, continuing that way annually:

● Banana trees/ stems wastes … 200,000 numbers … 10000 T gross (10000 nos. for crockery & 190000 nos for Energy @ $0.833 … Total Power obtained Heat + Electricity = 550 KW)

● Sawdust for Boards (based on 30% moisture) … 5215 T @ $62.5/ T ● Plants/ fibrous vegetation etc (25% solids) [3650 T for Boards] … @ $62.5/ T Glass fibers● 830 T for Boards @ $2.09/ Kg; Crockery Filler 10 T @ $729/17/ T ● Polymers @ $2.19/ Kg 1486.5 T; Chemicals 208 T for Boards @ $1.35/ Kg; Glass-Fiber mats for Boards

172.5 T @ $3333.33/ T; Melamine etc 50 T @ $3541.67/ T; Packaging for Crockery @ 9% Sales value of crockery … Annual Cost increments are assumed @ 3% (from 3rd yr onward)

6. The First year productions of Energy and other related materials would be estimated @ 50% full values7. Process wastage are considered = 1.5% of all raw materials input, inclusive of packaging (although we shall

use almost all wastes too)8. Salaries/ wages etc (see 2 above) are expected to increase annually @ 3%; first year's manpower @ 75%

level; second year also at 75% level; 3rd yr on, at full level (with the 3% increment considered)9. Maintenance and repair costs are @ 2.5% of raw materials (packaging inclusive)10. Additional Overheads and imponderables @ 9% on sales11. SALES: Molded Crockery @ $11458/33/ T; Molded Strand Doors @ $1666/67 per T; Biofertilizer @

$260/42 per T; GREEN Sulfur @ $833.33 per T [Annual increment @ 3% computed from Yr 3]12. Working capital (WC) estimated @ 1/6 th of sales; WC interests estimated @ 12.5% from 2nd yr on, (trial

period we offset a portion of the debt funds for WC = ½ of estimated costs) [NOTE: Although the WC interests would be on the (70%) borrowings, we shall consider the total value for interest computations...thereby looking at “conservative costing”]

13. Overall finance costs estimated @ 10% of on Debt funds (Borrowings = Rs.8 Cr) ...interest paid in full from Year 1; additional costs on insurance etc @ 2.5% of sales [Note: This is a conservative costing, although actual interests are only 8%]

14. Depreciation is computed as follows (year 1, we consider only 30% value) … see below15. 10% of Net Profits are Donated to Charity, claiming 50% on the same as Tax rebate, the following year16. Total Funds ($2,125,610) brought in by Co-promoters are: $2,083,333.33 by way of Preferential

($416,666.67) + Debt ($1,666,666.67). 30% shareholding offered + $$416,666.67 Preferential shares (redeemable @ 250% value, in 5th yr); Debt funds @ 8% interest (reducing balance) … NOTE: For conservative estimate Debt interests are computed @ 10%

17. There would be annual “Directors' Perks, from year 2: Directors' perks --- 208, 333.33 416, 666.67 625, 000 625, 000 1, 041, 666.67

18. DEPRECIATION and WRITE-OFF VALUES: ($1, 041, 666.67 invested in 3rd yr; depreciation on these @ 10% from 4th yr, added on; $1, 250, 000 additional in 4th yr; and $2, 291, 666.67 in 5th yr --- all from Cash flow reserves)

Depreciation (Rs.) Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6

@ 5.00% (Rs.) 300, 000 985, 000 935, 750 888, 962.5 844, 514.37 802, 288.65

@ 10.00% (Rs.) 1, 260, 000 4, 074, 000 3, 666, 600 8, 299, 940 13, 469, 946 23, 122, 951.4

Ten yr write-off (Rs.) 290, 400 968, 000 968, 000 968, 000 968, 000 968, 000

TOTAL (Rs.) 1, 850, 400 6, 027, 000 5, 570, 350 10, 156, 902.5 15, 282, 460.37 13, 893, 240.05

TOTAL (US $) 38, 550 125, 562.5 116, 048.96 211, 602.13 318, 384.59 289, 442.5


AGRO-BIOGENICS (Clean-Tech) Private LimitedECONOMICS OF OPERATION (Molded Crockery 110 T + MSD … 7257 T …

PRODUCTION DOUBLES in 4th yr; treble in 5th yr; Sixfold in 6th yr)Description Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6No. of shifts 1 3 3 3 3 3No. of days 100 300 300 300 300 300Effective hrs 600 4, 000 6, 000 6, 150 6, 300 6, 450

SALES (US $) DOUBLE TREBLE SIXFOLDCrockery Prodn. T 11 73.33 110 225.5 346.5 709.5Boards Prodn. T 736 4906.67 7360 15, 088 23, 184 47, 472

Crockery 6050000 (Rs.) 40, 331, 500 (Rs.) 62315000 (Rs.) 131578122.5 (Rs.)

Molded Doors 58880000 (Rs.) 392, 533, 600 (Rs.) 606464000 (Rs.) 1280548736 (Rs.)

Biofertilizer 2112500 (Rs.) 2819375 (Rs.) 4355998.75 (Rs.)Green Sulfur 150000 (Rs.) 200000 (Rs.) 309000 (Rs.)

TOTAL SALES ($) 1, 399, 843.75 9, 080, 926.56 14, 030, 083.3 29, 624, 520.9 46, 886, 223.45 98, 885, 277.93COST UNITS OF OPERATION/ PRODUCTION Shown in Rs. … TOTAL COSTS IN US $

Banana Plants 4000000 5333333.33 8240000Sawdust 1564500 10430000 16, 114, 350

Plants/Fibers 1095000 7300000 11, 278, 500

Fiber for Boards 8, 300, 000 55, 333, 333.33 85, 490, 000

Glass-mat (Doors) 2, 760, 000 18, 400, 000 28, 428, 000

Filler for crockery 35, 000 233, 333.33 360, 500Polymer 15, 608, 250 104, 055, 000 160, 764, 975Chemical 1, 352, 000 9, 013, 333.33 13, 925, 600

Melamine etc 850, 000 5, 666, 666.67 8, 755, 000Raw materials ($) 740, 932.29 4, 495, 104.17 6, 944, 935.93 14, 664, 232.23 23, 208, 829.98 48, 948, 527.62

Packaging 544, 500 3, 629, 835 5, 608, 350 11, 842, 031.02 12, 494, 786.87 26, 352, 100.5Wastage (1½%) 541638.75 3290922.52 5084479.12 10735877.67 16897779.39 35638221.4

HR Costs 11, 333, 250 22, 488, 997.5 30, 884, 889.9 62, 696, 326.5 96, 865, 824.43 199, 543, 598.32Maintenance 916272.21 5567143.94 8601243.85 18161526.39 28585410.14 60287991.2

Imponderables 6, 047, 325 39229602.75 60, 609, 959.88 127, 977, 930.3 202, 548, 485.3 427, 184, 400.66TOTAL COSTS ($) 1, 144, 744.5 6, 041, 072.95 9, 253, 038.49 19, 485, 350.81 30, 654, 502.61 64, 552, 825.79

Gross MARGIN ($) 255, 099.25 3, 039, 853.61 4, 777, 044.81 10, 139, 170.09 16, 231, 720.84 34, 332, 452.14FINANCIAL, OTHER RELATED COSTS, PROFITS/LOSS and CASH-FLOW ($)

WC Interest --- 189, 185.97 292, 293.4 617, 177.52 976, 796.32 2, 060, 109.95Debt-int 166, 666.67 166, 666.67 125, 000 83, 333.33 41, 666.67 ---

Insurance etc 34, 996.09 227, 023.16 350, 752.08 740, 613.02 1, 172, 155.58 2, 472, 131.95Cash-loss/Profit 53, 436.49 2, 456, 977.81 4, 008, 999.33 8, 698, 046.22 14, 041, 102.27 29, 800, 210.24Depreciation etc 38, 550 125, 562.5 116, 048.96 211, 602.13 318, 384.59 289, 442.5Gross Profit/loss 14, 886.49 2, 331, 415.31 3, 892, 950.37 8, 486, 444.09 13, 722, 717.68 29, 318, 482.07

Tax rebate --- -491.25 -76, 945.05 -129, 775.43 -282, 258.84 -457, 648.08Taxes (34%) 5, 061.41 792514.18 1, 297, 441.81 2, 841, 267.34 4, 569, 756 9, 812, 683.55

Net Profit/Loss 9, 825.08 1, 538, 901.13 2, 595, 508.56 5, 645, 176.75 9, 152, 961.68 19, 505, 798.52Charity donation 982.51 153, 890.11 259, 550.85 564, 517.67 915, 296.17 1, 950, 579.85Gross Cash-flow 47, 392.57 1, 510, 573.52 2, 452, 006.67 529, 2261.21 8, 556, 050.1 17, 844, 661.17Debt Repayment --- 416, 666.67 416, 666.67 416, 666.67 416, 666.67 ----

DIVIDENDS --- 416, 666.67 625, 000 2, 083, 333.33 3, 125, 000 6, 250, 000EPS (Rs.) --- 2000 3000 10000 15000 30000

Directors' perks --- 208333.33 416, 666.67 625, 000 1, 041, 666.67 1, 250, 000Redeemed share --- --- --- --- 1, 041, 666.67 ---New Investment --- --- 1, 041, 666.67 1, 250, 000 2, 291, 666.67 ---

Cash accrued 47, 392.57 516, 299.42 468, 306.08 1, 385, 567.29 2, 024, 950.71 12, 369, 611.88Rs.10 Share enhances its value to Rs.15, 000 by yr 4 end

CARBON CREDITS Potential (year 3): 4,000 (value at current level = €60, 000)

August 18 2010


new agro-biogenics (clean-tech) private limited joint … · 2010. 12. 11. · agro-biogenics...

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