Detailed Project Report · Version 17 · September 2026 · Confidential
Precipitated Silica &
Nano-PCC Circular Biorefinery
A rice-husk-based circular biorefinery producing 20 MT/day Precipitated Silica and 30 MT/day Nano-PCC from Day 1. Miryalaguda, Nalgonda, Telangana · 10 acres @ ₹22L/acre. Export-first revenue model — Y1 DSCR 10.4× (moratorium interest only ₹0.625 Cr); Y2 DSCR 5.3×; Y4+ DSCR 20.9×. Blended debt rate 4.5% (TDB ₹5 Cr + RDIF ₹7.5 Cr + SIDBI ₹1.5 Cr).
₹24 Cr
Total Project Cost
10.4×
Y1 DSCR (Moratorium)
833
kg PS per hour
1,250
kg PCC per hour
₹5.9 Cr
Y1 EBITDA (60% util)
20.9×
Y4+ DSCR (Steady State)
Section A1
01Executive Summary
Fluxara converts rice husk — an agricultural waste available in unlimited supply within 50 km of the plant — into two globally traded specialty chemicals. The circular chemistry recovers and reuses 82% of NaOH, eliminating the single biggest cost driver. Year 1 cash flow is strongly positive at export pricing.
Project Thesis
Rice husk ash (RHA) contains 92% amorphous SiO₂ — the same material sold as Precipitated Silica at ₹42–144/kg. The process dissolves RHA in NaOH, then precipitates pure SiO₂ with CO₂ captured from the same combustion furnace. The spent NaOH solution is recovered via causticisation, which simultaneously produces Nano-PCC (Calcium Carbonate) as a co-product. No raw material is wasted. CO₂ cost is zero — it is captured internally.
Why This Works Financially
- ✓ Export pricing from Month 12 — ₹42/kg vs ₹26 domestic
- ✓ NaOH recovery loop cuts #1 OPEX by 82%
- ✓ PCC is obligatory co-product — no extra cost
- ✓ Zero CO₂ purchase — flue gas internally piped
- ✓ Break-even at only 33% utilisation
- ✓ Y1 DSCR 10.4× — moratorium interest only ₹0.625 Cr; 9.15× above 1.25× covenant
- ✓ No promoter bridge required — Y1 net cash +₹4.3 Cr
Most critical moment: Y2 (first P+I year, 75% utilisation) DSCR = 5.3× — the tightest the project gets post-moratorium, and still 4.05× above the 1.25× covenant. Worst-case Y4+: PS price −25% + NaOH +50% + 75% utilisation → DSCR still 7.2× (₹17.7 Cr EBITDA ÷ ₹2.33 Cr DS). No realistic stress scenario threatens debt service. Blended debt cost 4.5% (TDB 5% + RDIF 3.5% + SIDBI 7.5%) vs commercial rate of ~10.5% saves ₹0.84 Cr/yr in interest.
Visual Overview
V1Circular Chemistry — NaOH Recovery Loop
The four reactions form a closed loop. NaOH is recovered at 82%, halving the #1 operating cost. CO₂ from combustion is piped directly to precipitation — zero purchase cost. PCC is an obligatory co-product of NaOH recovery.
Section A2
02Promoter & Company
Fluxara is promoted through M/S Surya Industries. The company is incorporated as a DPIIT-recognised startup, making it eligible for CGSS guarantee, TDB loans, and IP fee rebates.
| Field | Detail |
|---|---|
| Company name | Fluxara Advanced Renewables & Applications Pvt Ltd |
| CIN | U35106TS2026PTC210706 |
| DPIIT Recognition | 246192 |
| Promoted via | M/S Surya Industries |
| State | Telangana |
| Category | MSME — Manufacturing startup |
Key Eligibilities
- ✓ DPIIT-recognised → CGSS 80% guarantee
- ✓ Udyam MSME → priority lending
- ✓ Startup India → 80% patent fee rebate
- ✓ Telangana MSME incentives
- ✓ TDB 5% loan (CSIR-IICT MOU anchor)
- ✓ DPIIT SISFS grant ₹35L (pending)
Section B1
03Products & Market
Fluxara produces two co-products simultaneously from the same process. Neither can be deferred — the causticisation loop produces both NaOH recovery and PCC in the same reaction vessel.
Precipitated Silica (PS)
| Grade | Domestic ₹/kg | Export FOB ₹/kg | Key Specification | Customers | Year Available |
|---|---|---|---|---|---|
| Standard | ₹26 | ₹42 | BET 140–165 m²/g · D50 ≤20 µm | SE Asia rubber compounders | Year 1 (Month 12) |
| HDS (Green Tyre) | ₹45–50 | ₹72–84 | CTAB ≥175 mg/g · CIPD ≥80% | Apollo, MRF, Ceat, Pirelli | Year 2 (Month 18+) |
| Dental / Food (E551) | ₹90–95 | ₹144–152 | Pb ≤1 ppm · D50 ≤12 µm · FSSAI E551 | Colgate, HUL, Dabur | Year 3 (Month 28+) |
Export premium: Standard PS exports at ₹42/kg vs ₹26/kg domestic — 61.5% premium. This single decision makes Y1 cash-flow positive. SE Asia rubber compounders buy on COA only — no OEM qualification barrier for standard grade.
Nano-PCC (Precipitated Calcium Carbonate)
| Grade | Price ₹/kg | Particle Size | Customers | Year Available |
|---|---|---|---|---|
| Bulk / Coatings | ₹10 | 2 µm d50 | Asian Paints, Berger, Nerolac | Year 1 |
| Sealant Grade (stearic coated) | ₹26 | 0.7 µm d50 | Pidilite, Sika, Henkel | Year 2 |
| Plastics Grade (OCC coated) | ₹42 | 0.5 µm d50 | PP/PE compounders | Year 2+ |
PCC is obligatory: The causticisation reaction (Na₂CO₃ + Ca(OH)₂ → 2NaOH + CaCO₃↓) must run to recover NaOH. CaCO₃ precipitates out as PCC regardless. Skipping PCC recovery creates a solid-waste problem and discards ₹6–10 Cr/yr revenue.
Section B2
04Process Technology
Four sequential reactions, all conducted in PP-lined SS304 reactors at atmospheric pressure. No exotic chemistry, no high-pressure vessels, no cryogenics. The process is well-documented in literature with lab validation required on extraction efficiency and NaOH recovery rate before engineering freeze.
RH Intake20 MT/day
›
Combustion≤700°C
›
NaOH Leach90°C · 2hr
›
FiltrationFilter press
›
CO₂ PrecippH 6–9
›
MVR Evap65% heat save
›
Spray DryPS out
›
CausticisePCC + NaOH
Reaction Chemistry
R1 — NaOH Leaching (90°C, 2hr, 10% NaOH solution):
SiO₂ + 2NaOH → Na₂SiO₃ + H₂O
Ratio: 1.331 kg NaOH/kg SiO₂ · RHA SiO₂ content: 92% amorphous (≤700°C — mandatory)
R2 — PS Precipitation (CO₂ from combustion flue — zero purchase cost):
Na₂SiO₃ + CO₂ + H₂O → SiO₂↓ + Na₂CO₃
CO₂ fed at 5% excess (stoichiometric × 1.05) for pH endpoint control · pH 6–9 · T: 50–70°C
R3 — NaOH Recovery + PCC Production (Causticisation — mandatory co-reaction):
Na₂CO₃ + Ca(OH)₂ → 2NaOH + CaCO₃↓ (nano-PCC)
Per kg Na₂CO₃: Ca(OH)₂ = 0.699 kg · NaOH recovered = 0.755 kg · PCC = 0.944 kg
R4 — CaO Slaking (on-site mandatory; never buy pre-slaked Ca(OH)₂):
CaO + H₂O → Ca(OH)₂ (ΔH = −63.7 kJ/mol, exothermic)
Yield: 1.122 kg Ca(OH)₂/kg CaO at 85% purity · Piduguralla quicklime ≥85% CaO
Critical constraint — furnace temperature: Must stay ≤700°C. Above this, amorphous SiO₂ converts to crystalline cristobalite — which cannot be dissolved in NaOH and destroys the entire batch. CEMS auto-shutoff programmed at 720°C. This is the single highest-consequence process risk.
Section B3
05Mass Balance — v17 Daily
All figures at 100% utilisation (330 operating days/year). Hourly rates assume 24-hour continuous operation.
20 MT/day
Precipitated Silica (833 kg/hr)
30 MT/day
Nano-PCC (1,250 kg/hr)
23 MT/day
Total RHA to leach
14 MT/day
NaOH lye (48%) input
20.5 MT/day
CaO quicklime input
| Stream | MT/day | MT/yr | Notes |
|---|---|---|---|
| INPUTS | |||
| Rice husk (raw) | 20.000 | 6,600 | ≤700°C combustion; thermal anchor + bonus ash + CO₂ |
| Purchased RHA | 19.400 | 6,402 | ≥90% SiO₂; ₹750/MT; 3–4 trucks/day |
| Bonus RHA (combustion) | 3.600 | 1,188 | Free — from own rice husk combustion |
| Total RHA to leach | 23.000 | 7,590 | 92% SiO₂ → 21.16 MT/day SiO₂ available |
| NaOH 48% lye | 14.000 | 4,620 | = 6.7 MT/day 100% NaOH; 4–5 tankers/week |
| CaO quicklime | 20.500 | 6,765 | ≥85% purity; Piduguralla, AP; XRF every delivery |
| CTAB (imported) | 0.440 | 145 | HDS grade only (Y2+); 4-week buffer mandatory |
| Stearic acid | 0.250 | 83 | Sealant-grade PCC coating (Y2+) |
| OUTPUTS | |||
| Precipitated Silica | 20.000 | 6,600 | 833 kg/hr · BET 140–165 m²/g · spray-dried |
| Nano-PCC (obligatory) | 30.000 | 9,900 | 1,250 kg/hr · 2–0.5 µm by grade |
| Desilicated residue | 4.400 | 1,452 | ₹900/MT to brick kilns = ₹1.31 Cr/yr |
| CO₂ used (precipitation) | 14.200 | 4,686 | 100% from flue gas; zero purchase cost |
| CO₂ surplus (BCR upside) | 10.850 | 3,581 | Not in base P&L; BCR credit potential ₹1.0 Cr/yr |
| Fresh water makeup | 130 KLD | — | After 80% ZLD recycle; total 650 KLD process water |
Section B4
06Energy Balance — v17
Same furnace as v16 (20 MT/day rice husk). At 20 TPD PS throughput, process heat demand rises to 178.1 GJ/day — MVR is mandatory and must be sized for 23 MT/day RHA (larger spec than v16).
| Item | GJ/day | Notes |
|---|---|---|
| Rice husk NCV (as-received, 10% moisture) | — | 12,150 kJ/kg |
| Gross thermal (20 TPD rice husk) | 243.0 | Furnace capacity unchanged |
| Useful heat @ 82% boiler efficiency | 199.3 | Available for all process uses |
| PROCESS HEAT WITH MVR | ||
| Evaporation (with MVR, 65% saving) | 89.6 | Scaled ×1.53 from v16 — MVR duty is larger |
| NaOH leaching (reactors) | 65.4 | Scaled ×1.53 from v16 |
| Spray drying | 23.1 | Scaled ×1.53 from v16 |
| Total process heat (with MVR) | 178.1 | ↑ from v16's 116.3 GJ/day |
| Thermal surplus (with MVR) | 21.2 | ↓ from v16's 83 GJ/day — Phase 2 needs new furnace |
| Without MVR — process need | 273.8 | 74.5 GJ/day deficit — plant cannot operate without MVR |
MVR is mandatory from Day 1. Without MVR, process heat demand exceeds available heat by 74.5 GJ/day. MVR must be sized for 23 MT/day RHA throughput — this is a larger specification than v16. Confirm with Indian Process Equipment Corp Pune at RFQ stage. Budget: ₹95L (vs v16's ₹74L).
Electrical Load — v17
| Item | kW |
|---|---|
| Installed load | ~900 kW |
| Operating load | ~695 kW |
| Solar PV offset | 600 kWp · 756 MWh/yr |
| Net grid draw | ~2.76M kWh/yr |
| Grid cost (₹7/kWh) | ₹1.93 Cr/yr |
| DISCOM required | 750 kW HT — file NOW |
Phase 2 Note
With only 21 GJ/day thermal surplus after Phase 1 operations, Phase 2 cannot be thermally powered from surplus alone. Phase 2 requires a second 20 MT/day furnace (₹65L) plus full process equipment. Phase 2 is self-funded from Y2+ accruals — no bank debt — and is expected to double PS output to ~40 MT/day.
Section B4b
07Surplus Utilisation & Value Addition
After Phase 1 process demands are met, two surplus streams remain: 21 GJ/day thermal and 10.85 MT/day CO₂. These are not in the base P&L model — they represent structured upside with low incremental CAPEX. None require bank debt.
CO₂ Surplus — 10.85 MT/day (3,581 MT/yr)
The furnace generates 25.05 MT/day of CO₂. Phase 1 PCC precipitation consumes 14.20 MT/day. The remaining 10.85 MT/day vents free. Three monetisation pathways, in order of implementation complexity:
▶ BCR Carbon Credits
Y1 READY · ₹0.8–1.5 Cr/yr
Register combustion RHA as biogenic CO₂ removal via Puro.earth CORC methodology. No CAPEX. Requires annual MRV (measurement, reporting, verification) audit. Conservative estimate: ₹400/tCO₂ × ~2,500 MT verified = ₹1.0 Cr/yr. Upside if full 3,581 MT verified at ₹400 = ₹1.43 Cr/yr.
CAPEX: ₹0 · Action: Register at Puro.earth Month 0
▶ Liquid CO₂ Supply
Y2 · ₹0.5–2.0 Cr/yr potential
Flue-gas CO₂ purified to food/industrial grade (99.5%+) via a CO₂ purification + liquefaction skid (₹40–60L CAPEX). Sell 1–3 MT/day as liquid CO₂ to beverage bottlers, fire-suppression refillers, and cold-chain operators within 150 km. Price: ₹12,000–18,000/MT. Revenue: 2 MT/day × ₹15,000 × 330 = ₹0.99 Cr/yr at conservative ramp.
CAPEX: ₹40–60L · Phase 2 priority · Payback ~2 yrs
▶ Algae / Greenhouse CO₂
Y3+ · Long-term value
Pipe surplus CO₂ to an on-site polyhouse / microalgae raceway (on the 5-acre Phase 2 land bank). CO₂ enrichment doubles crop yield; algae biomass can be sold for feed, biofuel feedstock, or specialty pigments. Concept-stage — requires agricultural partnership and separate feasibility. Not modelled.
CAPEX: ₹1–3 Cr · Concept stage · Not in base model
Thermal Surplus — 21 GJ/day
21 GJ/day = ~700 kWh/day electrical equivalent (at 12% ORC efficiency) or ~5.8 GJ/hr of low-grade heat. At v17 scale this surplus is modest — Phase 2 will consume most of it with the second production line.
▶ ORC Electricity Generation
Y2+ · ₹15–20L/yr · Low priority
An Organic Rankine Cycle (ORC) module on the THU surplus loop would convert low-grade thermal oil (180–220°C) to ~580 kWh/day at 10% efficiency = 192,000 kWh/yr. At actual TGSPDCL rate ₹7.78/kWh → ₹14.9L/yr saving. Actual ORC CAPEX (25 kW output, Turboden/Chinese make): ₹50–85L total; payback 4.5–5.7 years. Imported turbine + R245fa working fluid + dedicated cooling tower + limited Indian service network = HIGH complexity. Compare vs extra 200 kWp solar (₹60L CAPEX → ₹22L/yr savings → 2.7 yr payback, zero complexity). DEFER ORC to Phase 2 when thermal surplus increases with second furnace.
CAPEX: ₹50–85L · Phase 2 only · Solar preferred in Phase 1 (2.7yr payback vs 4.5yr ORC)
▶ RHA Pre-Drying & Process Heat
Y1 READY · Cost saving
Route a portion of thermal surplus to a purchased RHA dryer — reducing moisture in incoming RHA from ~8% to <4% improves leaching yield and reduces steam load on the MVR. Estimated improvement: 1–2% extraction efficiency uplift → 60–130 MT/yr additional PS at no extra NaOH cost. ₹0.25–0.55 Cr/yr revenue uplift. Simple screw conveyor + duct heater ≤₹8L CAPEX.
CAPEX: ₹6–8L · Immediate ROI · Include in base civil
Consolidated Surplus Upside Summary
| Opportunity | Stream | Incremental CAPEX | Annual Upside | When | Base P&L |
|---|---|---|---|---|---|
| BCR / CORC carbon credits | CO₂ | ₹0 | ₹1.0–1.4 Cr/yr | Y1 | Upside only |
| RHA pre-dryer (extraction improvement) | Heat | ₹6–8L | ₹0.25–0.55 Cr/yr | Y1 | Include in base |
| Liquid CO₂ sales (beverage/industrial) | CO₂ | ₹40–60L | ₹0.5–1.0 Cr/yr | Y2 | Upside only |
| ORC electricity generation | Heat | ₹30–40L | ₹15–20L/yr | Y2/Phase 2 | Upside only |
| Algae / polyhouse CO₂ enrichment | CO₂ | ₹1–3 Cr | TBD | Y3+ | Concept stage |
| Combined near-term (BCR + dryer) | — | ₹6–8L | ₹1.25–2.0 Cr/yr | Y1 |
Section B5
08Site & Infrastructure
Miryalaguda, Nalgonda District, Telangana. 10 acres at ₹22L/acre = ₹2.20 Cr. Miryalaguda is the Nalgonda district headquarters — established town (~80,000 pop.), grid power from TSSPDCL Miryalaguda (apply 750 kW HT at Month 0), abundant rice husk from surrounding paddy belt, Hyderabad ~100 km, Nagarjunasagar Left Canal for water security. Staff housing available in town (~5 km) — 10 on-site quarters for security/maintenance/shift supervisors.
Site Specifications
| Location | Miryalaguda, Nalgonda, Telangana |
| Area | 10 acres @ ₹22L/acre = ₹2.20 Cr |
| Road frontage | 1,300 ft |
| NH-44 distance | 2.5 km |
| Water source | Paddy belt aquifer confirmed |
| DISCOM | 750 kW HT — letter pending |
| RHA sourcing | 30+ rice mills within 30 km |
Land Use Plan — 10 Acres Total (435,600 sft · 48,400 sq yds)
Phase 1 operational: ~4.6 acres · Phase 2 land bank: ~6.9 acres · Buffer: ~0.5 acres
All figures derived from equipment footprints, 7-day inventory buffers, fire-lane widths, and TSPCB greenbelt norms. 1 acre = 4,047 m².
| Process building — leach reactors ×5, filter presses ×3, precipitation tanks, spray dryers ×3, MVR (enclosed fire-rated RCC) | 1,500 m² | 0.37 ac |
| Furnace + THU zone — stoker furnace, ID fan, ash bunker, cyclones, THU oil heater, CEMS chimney + 10m fire setback (fire-rated RCC, NOT PEB) | 800 m² | 0.20 ac |
| RHA + rice husk storage shed — 7-day buffer: 135 MT RHA + 60 MT raw husk; covered, vehicle unloading lane; dust suppression | 700 m² | 0.17 ac |
| Chemical storage zone — 2×50 KL NaOH SS tanks (bunded 110% containment); CaO moisture-proof godown 150 MT; CTAB cool-store 4-week buffer; stearic acid; all with secondary containment bund | 750 m² | 0.19 ac |
| Finished goods warehouse + dispatch — PS 800 bags/day + PCC 1,200 bags/day; 7-day racked inventory; 3-bay container staging (8–9 FCL/month); weighbridge; truck turnaround | 900 m² | 0.22 ac |
| ETP + ZLD plant — equalisation, DAF, MBR, RO train, MEE evaporator, sludge drying beds; 25 KLD capacity; 80% water recycle; TSPCB mandatory Day 1 | 550 m² | 0.14 ac |
| QC laboratory + admin office + canteen + change rooms + first-aid room + staff accommodation (5 rooms for night-shift residents) | 400 m² | 0.10 ac |
| HV substation (750 kW HT) + MCC room + SCADA/PLC control room + DG set backup (standby, not continuous) | 380 m² | 0.09 ac |
| Utilities block — compressed air station, DM water plant, 100 KL raw water storage, 250 KL fire water tank + pump house, cooling loop | 350 m² | 0.09 ac |
| Solar ground-mount balance (~150 kWp of 400 kWp total; remaining ~250 kWp on process + warehouse + admin rooftops) | 1,100 m² | 0.27 ac |
| Internal roads + hardstanding — perimeter fire lane (4m × 880 lm), internal truck routes, NaOH tanker bay, CaO truck bay, container staging apron | 4,500 m² | 1.11 ac |
| Greenbelt + drainage — TSPCB-mandated 5m boundary plantation (all 4 sides), retention pond, storm drain network, site bunds | 6,000 m² | 1.48 ac |
| Gate complex, guard cabin, weighbridge cabin, fire hydrant ring, utility ducts, miscellaneous open area | 750 m² | 0.19 ac |
| Phase 1 operational total | 18,680 m² | 4.62 ac |
| Phase 2 land bank — reserved for second furnace + second process line (requires new combustion unit; self-funded Y2+) | 27,900 m² | 6.89 ac |
| Safety buffer / unallocated margin | 2,000 m² | 0.49 ac |
Total: 4.62 + 6.89 + 0.49 = 12.0 acres ✓ | Rooftop solar: 512 kWp available (process 192 kWp + FG warehouse 224 kWp + admin 96 kWp) + 88 kWp ground-mount = 600 kWp total
DISCOM 750 kW HT connection letter is a pre-condition for bank sanction. Apply to TSSPDCL Miryalaguda at Month 0 (or before financial close). Do not apply for 500 kW — 20 TPD PS requires ~695 kW operating load and 900 kW installed. A 500 kW connection will not support full throughput.
Section B6
09Equipment List
All Indian-vendor equipment. Priority RFQs must be sent for 6 items before CAPEX can be locked to ±10%. Current estimates are based on DPR v17 Indian market BOM.
| Equipment | Vendor / Location | ₹ Lakhs | Priority RFQ |
|---|---|---|---|
| Rice husk furnace 20 MT/day (≤700°C CEMS) | Thermax / Raj International | 65 | P1 RFQ |
| THU thermal oil heater 3.5 MMkcal/hr (Therminol 55, atmospheric) | Forbes Marshall / Thermax | 48 | P1 RFQ |
| Leach reactors ×5 SS304/PP 10 KL (v17 — 2 extra vs v16) | Hydro Air Engineers, Hyderabad | 70 | |
| Filter presses ×3 1200mm PP | Star / Hydro Press Gujarat | 39 | P5 RFQ |
| Spray dryers ×3 SS304/SS316L (v17 — 1 extra vs v16) | Raj Process Equipments, Pune | 181 | P1 RFQ |
| Draft-tube causticiser + CaO slaker (v17 larger) | Local fabrication, Hyderabad | 35 | |
| PCC hydrocyclone 3-stage D4+D6+D8 | Krebs Engineers, Vadodara | 46 | P6 RFQ |
| MVR 2-effect evaporator (v17 larger spec) | Indian Process Equipment Corp, Pune | 95 | P3 RFQ |
| ETP + ZLD 25 KLD | Thermax Enviro / Enviro Labs, Hyd | 64 | P4 RFQ |
| QC lab — BET + PSD + XRF + pH/titration | Multiple suppliers | 32 | |
| Solar PV 600 kWp — 512 kWp rooftop (process 192 kWp + FG warehouse 224 kWp + admin 96 kWp) + 88 kWp ground-mount + 750 kW HT grid connection | Waaree/Adani Solar (panels) · SMA/Huawei (inverters) · TGSPDCL (HT) | 340 | P1 RFQ |
| PLC + SCADA (Siemens S7-1200 + Ignition) | Siemens + Inductive Automation | 110 |
Section B7
10Workforce, Duties & HR
28 permanent staff organised across 3 shifts (24×7 continuous operations) plus day-shift support functions. All contracts are direct employment — no contractor labour for core process roles. Average CTC ₹5.0L/yr; total wage bill ₹1.40 Cr/yr.
Shift structure: Shift A (06:00–14:00) · Shift B (14:00–22:00) · Shift C (22:00–06:00). Each shift: 1 Supervisor + 4 Operators + 1 Helper. Day shift additionally has Plant Manager, Process Engineers, QC, Admin, Maintenance, Driver. Security runs all 3 shifts (1 per shift = 3-guard roster on 2 heads).
Organisational Roster
| # | Role | HC | CTC ₹L/yr | Shift | Contract Type | Key Duties | SLA / KPI |
|---|---|---|---|---|---|---|---|
| LEADERSHIP | |||||||
| 01 | Plant Manager | 1 | ₹12–15L | Day (flexible) | Permanent · senior | Overall plant operations, TSPCB compliance, customer quality sign-off, vendor management, daily P&L tracking | OEE ≥85% · DSCR-linked bonus · Zero CTO violations |
| PROCESS ENGINEERING | |||||||
| 02 | Process Engineer – PS Line | 1 | ₹7–9L | Day + standby | Permanent | NaOH leach optimisation, precipitation pH control, spray dryer parameters, PS BET/PSD review, export COA sign-off | PS BET 140–165 m²/g ±5% · D50 ≤20 µm · Customer rejection rate <1% |
| 03 | Process Engineer – PCC & Utilities | 1 | ₹7–9L | Day + standby | Permanent | Causticisation yield monitoring, CaO slaking, PCC d50 control, MVR/THU/ZLD oversight, steam & water balance, utility logs | NaOH recovery ≥82% · PCC d50 target ±0.2 µm · ZLD zero effluent discharge |
| SHIFT SUPERVISORS (3 × ROTATING) | |||||||
| 04–06 | Shift Supervisor (×3) | 3 | ₹5–6L | Rotating 3-shift | Permanent | Lead 4-operator team; monitor furnace temp (hard limit ≤700°C), leach reactor pH, filter press cycle, spray dryer inlet; log all CEMS readings; escalate deviations; handover report every shift | Zero furnace overshoot events · Handover log 100% complete · No unplanned shutdowns >2hr |
| PROCESS OPERATORS (4 PER SHIFT × 3 SHIFTS) | |||||||
| 07–10 | Operator – Furnace & RHA Intake | 3 | ₹3–4L | Rotating 3-shift | Permanent | Rice husk feed conveyor, combustion chamber monitoring, RHA discharge to hopper, purchased RHA receipts, weighbridge log, CEMS data observation | Furnace temp logged every 30 min · RHA weight variance <1% |
| 11–13 | Operator – Leach & Precipitation | 3 | ₹3–4L | Rotating 3-shift | Permanent | NaOH dosing into reactors, temperature hold (90°C, 2hr), pH monitoring during CO₂ precipitation, filter press loading/unloading, sodium silicate sampling | pH endpoint ±0.2 · Filtration cycle time <45 min/batch |
| 14–16 | Operator – Spray Dryer & PS Packing | 3 | ₹3–4L | Rotating 3-shift | Permanent | Spray dryer inlet/outlet temperature, bag fill weight (25 kg), FIBC packing for export, bag sealing + label, shift production count, FG warehouse stack | Bag weight ±0.2 kg · PS output per shift ≥6.5 MT |
| 17–19 | Operator – Causticisation & PCC | 3 | ₹3–4L | Rotating 3-shift | Permanent | CaO slaking tank, draft-tube causticiser, PCC hydrocyclone, NaOH density check, stearic acid dosing (sealant grade), PCC bag fill and warehouse | PCC per shift ≥9.5 MT · NaOH recycle density 200–220 g/L · CaO slaking exotherm ≤90°C |
| HELPERS (3 × ROTATING) | |||||||
| 20–22 | Process Helper (×3) | 3 | ₹2–2.5L | Rotating 3-shift | Permanent / fixed-term | Manual material transfer, reactor cleaning (shutdown), housekeeping of process floor, PPE audit, waste residue bagging (brick-kiln material), assist operators | Zero PPE violations · Residue dispatch log complete each shift |
| QUALITY CONTROL & LAB | |||||||
| 23 | QC / Lab Analyst (Senior) | 1 | ₹6–8L | Day + on-call | Permanent | BET analysis (PS), XRF of RHA and CaO each delivery, PSD (laser diffraction), ICP-OES for Pb/heavy metals, COA preparation for export, FSSAI compliance testing from Y3 | COA turnaround <4hr · Pb ≤1 ppm (dental) · BET report per batch |
| 24 | QC / Lab Analyst (Junior) | 1 | ₹3–4L | Day | Permanent | Daily pH, density, and titration checks (NaOH circuit), sampling from each reactor batch, maintain sample register, calibrate instruments, prepare TSPCB monthly stack emission reports | Sample log 100% complete · CEMS calibration monthly |
| MAINTENANCE, ADMIN & SUPPORT | |||||||
| 25 | Maintenance Technician | 1 | ₹4–5L | Day + on-call | Permanent | Preventive maintenance schedule (PMC), pump/motor overhauls, filter press plate inspection, THU oil-circuit checks, SCADA hardware, coordinate Thermax / Forbes Marshall AMC visits | Planned PM completion ≥95% · Unplanned downtime <2% per month |
| 26 | Admin / Accounts (×2) | 2 | ₹3–4L | Day | Permanent | GST / TDS filings, vendor payments, customer invoicing, export documentation (SB, packing list, COO), Tally ERP, payroll, MIS reporting to promoter weekly | Invoice dispatch within 24hr of shipment · GST filing by due date |
| 27–28 | Security Guard (×2, 3-shift roster) | 2 | ₹2–2.5L | Rotating 3-shift | Fixed-term / agency | Gate register (vehicles, personnel, chemicals), CCTV monitoring, contractor escort, emergency muster, NaOH tanker receipt counter-sign | Gate log 100% · No unauthorized entry incidents |
| 29 | Driver (logistics) | 1 | ₹2.5–3L | Day + as required | Permanent | Plant vehicle for CaO / RHA spot purchases, sample delivery to CSIR-IICT / testing labs, customer sample drops, staff transport when required | Vehicle log complete · Valid commercial licence |
| TOTAL — 28 Permanent / Fixed-term Staff | 28 | ₹1.40 Cr/yr | Avg CTC ₹5.0L/yr across all grades | ||||
HR Policies & Contracts
Employment Structure
| Core process roles (1–27 exc. security) | Direct permanent · PF + ESI + gratuity |
| Probation period | 6 months (all roles) |
| Notice period | 1 month (operators) · 2 months (engineers+) |
| Security guards | Via licensed security agency (Factories Act compliant) |
| Overtime | 2× basic (Factories Act §59); max 50hr/qtr |
| Annual increment | 8–12% subject to DSCR > 2× |
Training & Compliance
- ✓ Process induction: 2 weeks before commissioning (all operators)
- ✓ HAZMAT handling: NaOH, CaO — annual refresher
- ✓ SCADA/PLC operation: Siemens certified (both shift supervisors)
- ✓ First aid & fire: 2 trained staff per shift (mandatory)
- ✓ CEMS data entry training: all supervisors pre-CTO
- ✓ Export documentation: Admin staff before first export shipment
- ✓ QC instruments (BET, PSD, XRF): QC team at OEM before commissioning
Remote management note: Plant Manager has full P&L authority up to ₹5L single-spend. Engineer on standby via WhatsApp/SCADA remote view 24×7. Promoter reviews weekly MIS (production, yield, NaOH recovery %, quality rejections, cash position). Critical deviations (furnace overshoot, TSPCB exceedance, customer rejection) trigger immediate promoter notification within 2 hours via automated SCADA alarm + SMS.
Section C1
11Capital Expenditure — ₹24 Crore
Detailed bottom-up Indian-market BOM. 600 kWp solar (up from 400 kWp) accounts for ₹1.5 Cr of the increase over the v17 working estimate. All grants and state subsidies excluded — base model funded entirely by promoter equity + CGSS term loan. Range: ₹22–27 Cr; lock to ±10% after 6 priority RFQs.
| Category | ₹ Lakhs | % of TPC | Notes / Key Suppliers |
|---|---|---|---|
| Land — 10 acres Miryalaguda @₹22L/acre | 220 | 9.2% | Primary collateral · TSSPDCL Miryalaguda DISCOM zone · Nagarjunasagar canal access |
| Civil — sheds, RCC, roads, drains, bunds | 165 | 6.7% | Fire-rated RCC for furnace/THU building — NOT PEB |
| Process equipment (detailed BOM, 20 line items) | 857 | 34.9% | Leach reactors ×8 (Gleam India) · Spray dryers ×3 (Shachi/Raj) · MVR (IPEC Pune) · Causticiser (Thermax) · ETP+ZLD (Thermax/Ion Exchange) · Filter press ×3 · Furnace (Heatovens) · THU (Alfa Laval) |
| Electrical + Solar 600 kWp (512 kWp rooftop + 88 kWp ground) · 750 kW HT | 340 | 13.8% | Waaree/Adani panels · SMA/Huawei inverters · Voltamp transformer · Siemens MCC · Cummins DG 500 kVA · TGSPDCL HT application at Month 0 |
| Instrumentation — PLC S7-1200 + Ignition SCADA + CEMS + VFDs | 124 | 5.0% | Siemens India (PLC) · Endress+Hauser/Yokogawa (field) · Sick India (CEMS) · ABB/Danfoss (VFDs) · CEMS mandatory before CTO; auto-shutoff at 720°C |
| Piping (HDPE/CPVC for 85% of runs) | 130 | 5.3% | Corrosion-resistant; NaOH + acid service |
| Structural (Hyderabad fabrication) | 60 | 2.4% | |
| Insulation + Fire protection | 48 | 2.0% | |
| Engineering + PMC (3.5% of direct) | 71 | 2.9% | |
| Contingency @ 8% of direct | 162 | 6.6% | Reduces to 5% after all 6 priority RFQs received |
| Pre-operative expenses + Working capital | 200 | 8.1% | No grants counted — state subsidies treated as upside if/when received |
| TOTAL PROJECT COST (TPC) | 2,457 | 100% | ≈ ₹24 Crore (use this for all modelling) |
Financing Split (CGSS only — clean structure)
₹15.6 Cr
Debt — 65% · CGSS-backed term loan
₹8.4 Cr
Equity — 35% · M/S Surya Industries
Debt Service Schedule
| Rate | 10.5% p.a. (SBI MCLR-linked) |
| Moratorium | 12 months (interest only) |
| Repayment tenure | 7 years post-moratorium |
| Y1 DS (moratorium) | ₹1.64 Cr (interest only) |
| Y2 DS (first P+I year) | ₹3.87 Cr (highest year) |
| Y8 DS (final year) | ₹2.46 Cr (lowest year) |
| CGSS fee (0.75% × 80% of loan) | ₹9.4L/yr on guaranteed portion |
Section C2
12Operating Expenditure — ₹27.4 Cr/yr
At 100% utilisation. NaOH is #1 OPEX at 30.9% — each 1% improvement in causticisation recovery saves ₹0.72 Cr/yr. Electricity restated at actual TGSPDCL HT-I(A) FY2026-27 tariff (₹7.65/kWh energy + ₹500/kVA/month demand charge). Lab validation of NaOH recovery rate is the highest-priority pre-commissioning activity.
| Item | ₹ Cr/yr | % OPEX | Calculation Basis |
|---|---|---|---|
| VARIABLE COSTS (scale with utilisation) | |||
| NaOH 48% lye | 8.43 | 30.9% | 14 MT/day × ₹18,240/MT × 330 days ✓ |
| Rice husk (raw) | 3.63 | 13.3% | 20 MT/day × ₹5,500/MT × 330 days ✓ |
| CaO quicklime ≥85% purity | 4.06 | 14.9% | 20.5 MT/day × ₹6,000/MT × 330 days · Piduguralla AP ✓ |
| CTAB (imported — 4-week buffer mandatory) | 2.61 | 9.6% | 0.44 MT/day × ₹1,80,000/MT × 330 days · highest supply risk ✓ |
| Stearic acid (Godrej domestic grade) | 0.58 | 2.2% | 0.25 MT/day × ₹70,000/MT × 330 days · domestic (was ₹1.20L/kg import; saves ₹41L/yr) |
| Purchased RHA (≥90% SiO₂ contract clause) | 0.48 | 1.8% | 19.4 MT/day × ₹750/MT × 330 days ✓ |
| Packing + transport (PS + PCC) | 1.82 | 6.7% | 264,000 HDPE bags (25 kg) ₹45/bag + 19,800 FIBC jumbo bags (500 kg) ₹400/bag + ~105 FCL containers/yr × ₹72,000 to Krishnapatnam/Chennai + domestic ₹0.50 Cr |
| Variable subtotal | 22.02 | 80.7% | |
| FIXED COSTS (largely independent of utilisation) | |||
| Electricity — net 600 kWp solar · TGSPDCL HT-I(A) @ 11 kV | 2.38 | 8.7% | Energy: 2.69M kWh net × ₹7.65 + ₹0.13 surcharge = ₹2.10 Cr · Demand: 474 kVA × ₹500 × 12 = ₹0.28 Cr · FY2026-27 rates (retained from FY2025-26) |
| Labour (28 staff, avg ₹5.0L CTC) | 1.40 | 5.1% | Plant Mgr + Engineers + Operators + QC + Admin ✓ |
| Maintenance (equipment AMC + civil) | 0.74 | 2.7% | Annual AMC contracts: Thermax (THU/MVR) + IPEC (evaporator) + Siemens (SCADA/PLC) + general spares pool. ~3.5% of process equipment value. |
| Admin + insurance + other | 0.82 | 3.0% | Factory insurance ₹0.30 Cr · Admin overheads ₹0.25 Cr · Misc ₹0.27 Cr |
| Fixed subtotal | 5.34 | 19.6% | |
| TOTAL OPEX (100% utilisation) | 27.36 | 100% | +₹0.56 Cr vs working estimate, mainly electricity restated at actual TGSPDCL tariff |
OPEX at Each Ramp Stage
| Year | Utilisation | Effective OPEX | Notes |
|---|---|---|---|
| Y1 | 60% | ₹16.0 Cr | Variable×60% + fixed; moratorium period · stearic acid at domestic ₹70k/MT |
| Y2 | 75% | ₹20.7 Cr | Post-moratorium; first EMI year |
| Y3 | 90% | ₹24.4 Cr | FSSAI dental grade activates (Year 3) |
| Y4+ | 100% | ₹26.2 Cr | Steady state · NaOH #1 cost at 32.2% of OPEX |
NaOH recovery is the biggest controllable lever: At 82% base recovery, NaOH costs ₹8.43 Cr/yr (30.9% of OPEX). Each 1% improvement in causticisation efficiency saves ₹0.72 Cr/yr. Achieving 86% (draft-tube causticiser target) saves ₹2.88 Cr/yr — 2× the equipment cost. Electricity at ₹2.38 Cr/yr (8.7% of OPEX) is the second-largest controllable lever; 600 kWp solar already cuts this vs grid-only by ₹0.74 Cr/yr at actual TGSPDCL tariffs.
Section C3
13Revenue Projections
Export pricing from Month 12. Standard PS at ₹42/kg FOB to SE Asia rubber compounders — no OEM qualification barrier. HDS grade from Year 2 (3–6 month qualification). Dental/food (FSSAI E551) from Year 3 — file application Month 10.
Y4+ Revenue Build (100% Utilisation, Steady State)
| Product / Grade | Volume MT/yr | Blended ₹/kg | Revenue ₹ Cr/yr |
|---|---|---|---|
| PS — Standard (25% of mix) | 1,650 | ₹42 | ₹6.93 |
| PS — HDS Green Tyre (60% of mix) | 3,960 | ₹75 | ₹29.70 |
| PS — Dental/Food E551 (15% of mix) | 990 | ₹144 | ₹14.26 |
| PS Total (6,600 MT/yr blended) | 6,600 | ₹77/kg blended | ₹50.82 |
| PCC — Bulk/Coatings (40% of mix) | 3,960 | ₹10 | ₹3.96 |
| PCC — Sealant stearic (40% of mix) | 3,960 | ₹26 | ₹10.30 |
| PCC — Plastics/PP (20% of mix) | 1,980 | ₹42 | ₹8.32 |
| PCC Total (9,900 MT/yr blended) | 9,900 | ₹23/kg blended | ₹22.77 |
| Desilicated residue (brick kilns) | 1,452 | ₹0.90 | ₹1.31 |
| TOTAL REVENUE Y4+ | — | — | ₹74.9 Cr ≈ ₹75 Cr |
Year-by-Year P&L Summary
| Year | Util % | Revenue | OPEX | EBITDA | EBITDA % | DS | DSCR | Net Cash |
|---|---|---|---|---|---|---|---|---|
| Y1 | 60% (avg ~50%) | ₹22.5 Cr | ₹16.6 Cr | ₹5.9 Cr | 26.2% | ₹1.64 Cr | 3.6× | +₹4.3 Cr |
| Y2 | 75% | ₹33.0 Cr | ₹22.0 Cr | ₹11.0 Cr | 33.3% | ₹3.87 Cr | 2.8× | +₹7.1 Cr |
| Y3 | 90% | ₹53.0 Cr | ₹25.5 Cr | ₹27.5 Cr | 51.9% | ₹3.63 Cr | 7.6× | +₹23.9 Cr |
| Y4+ | 100% | ₹75.0 Cr | ₹27.4 Cr | ₹47.6 Cr | 63.5% | ₹3.40 Cr | 14.0× | +₹44.2 Cr |
Y1 net cash = +₹4.3 Crore. No promoter bridge required. Break-even utilisation = ~33% at export pricing. Even at 35% utilisation, the project generates positive EBITDA and covers moratorium interest. Y2 is the tightest DSCR year (2.8×) — still 1.55× above the 1.25× bank covenant.
Section C4
14Financing Structure
Single clean debt instrument: CGSS-backed term loan from any scheduled bank (SBI/Canara/Bank of Baroda preferred). No grants, no TDB, no SIDBI SMILE overlay — those may become upside after years of operations but are not base-case and must not be counted as project funding. All financing at Indian institutional rates; no foreign currency exposure.
| Component | Source | Amount | Rate / Cost | Status | Notes |
|---|---|---|---|---|---|
| CGSS Term Loan | SBI / Canara / BoB (CGSS-participating bank) | ₹15.6 Cr | 10.5% p.a. | TO FILE | Primary debt · 12M moratorium · 7yr repayment. Apply simultaneously with DPIIT recognition. CMA data + DPR required. |
| CGSS guarantee (NCGTC) | NCGTC via bank | ₹12.48 Cr covered (80%) | 0.75%/yr fee on guaranteed amount | FILE WITH BANK | Uncovered: ₹3.12 Cr. Land collateral ₹3.60 Cr covers 1.15×. Annual CGSS fee ≈ ₹9.4L/yr. |
| Promoter equity | M/S Surya Industries + co-promoters | ₹8.4 Cr | — | COMMITTED | 35% of TPC ₹24 Cr. Includes land value ₹3.60 Cr. Balance ₹4.8 Cr cash injection before first drawdown. |
| Repayment Year | Opening Balance | Principal | Interest @10.5% | Total DS | CGSS Fee | All-in DS |
|---|---|---|---|---|---|---|
| Y1 (moratorium) | ₹15.60 Cr | — | ₹1.64 Cr | ₹1.64 Cr | ₹0.09 Cr | ₹1.73 Cr |
| Y2 (1st P+I) | ₹15.60 Cr | ₹2.23 Cr | ₹1.64 Cr | ₹3.87 Cr | ₹0.09 Cr | ₹3.96 Cr |
| Y3 | ₹13.37 Cr | ₹2.23 Cr | ₹1.40 Cr | ₹3.63 Cr | ₹0.08 Cr | ₹3.71 Cr |
| Y4 | ₹11.14 Cr | ₹2.23 Cr | ₹1.17 Cr | ₹3.40 Cr | ₹0.07 Cr | ₹3.47 Cr |
| Y5 | ₹8.91 Cr | ₹2.23 Cr | ₹0.94 Cr | ₹3.17 Cr | ₹0.05 Cr | ₹3.22 Cr |
| Y6 | ₹6.69 Cr | ₹2.23 Cr | ₹0.70 Cr | ₹2.93 Cr | ₹0.04 Cr | ₹2.97 Cr |
| Y7 | ₹4.46 Cr | ₹2.23 Cr | ₹0.47 Cr | ₹2.70 Cr | ₹0.03 Cr | ₹2.73 Cr |
| Y8 (final) | ₹2.23 Cr | ₹2.23 Cr | ₹0.23 Cr | ₹2.46 Cr | ₹0.01 Cr | ₹2.47 Cr |
Personal exposure limited: CGSS covers 80% of ₹15.6 Cr = ₹12.48 Cr. Bank's uncovered exposure is only ₹3.12 Cr — fully covered by land collateral (₹3.60 Cr, 1.15×). Strategy: no personal guarantee on term loan beyond land mortgage; personal guarantee on working capital limited to 1× limit. Y2 is the peak DS year (₹3.96 Cr) — EBITDA of ₹11 Cr gives DSCR 2.8×. State subsidies (TSICDS, DPIIT SISFS, TDB) are tracked as upside — treat any receipts as early principal prepayment.
Section C5
15DSCR Analysis
DSCR = EBITDA ÷ All-in Debt Service (P + I + CGSS fee). Bank minimum covenant: 1.25×. Y2 is the tightest year (first P+I payment on highest outstanding balance) at 2.8× — 1.55× above covenant. Y1 moratorium DSCR of 3.6× gives significant headroom from Day 1 of commercial production.
| Year | EBITDA | All-in DS | DSCR | vs Covenant (1.25×) | Status |
|---|---|---|---|---|---|
| Y1 (60% util · Moratorium · interest + CGSS fee only) | ₹5.9 Cr | ₹1.73 Cr | 3.6× | +2.35× buffer | ✅ Bankable |
| Y2 (75% util · First P+I year · peak DS) | ₹11.0 Cr | ₹3.96 Cr | 2.8× | +1.55× buffer | ✅ Bankable |
| Y3 (90% util · HDS + partial dental · DS reduces) | ₹27.5 Cr | ₹3.71 Cr | 7.4× | +6.2× buffer | ✅ Strong |
| Y4+ (100% · full grade mix · dental/food revenue) | ₹47.6 Cr | ₹3.47 Cr | 13.7× | +12.5× buffer | ✅ Exceptional |
DSCR trajectory: Y1 at 3.6× (moratorium), Y2 tightest at 2.8× (still 1.55× above covenant), then accelerates to 7.4× in Y3 as HDS + dental grades kick in. By Y4+, annual EBITDA of ₹47.6 Cr is enough to repay the entire loan principal in 4 months. Debt service risk is negligible. Note: Y2 DS (₹3.96 Cr) is the true test year — if RFQ prices come in higher and TPC rises, run sensitivity specifically on Y2 DSCR with revised DS.
Section C6
16Sensitivity Analysis
Base case Y4+: Revenue ₹75 Cr · EBITDA ₹47.6 Cr · DS ₹3.47 Cr (Y4, reducing) · DSCR 13.7×. All scenarios tested against 1.25× DSCR covenant. Most critical year is Y2 (DS ₹3.96 Cr, EBITDA ₹11.0 Cr, DSCR 2.8×).
| Scenario | EBITDA Impact | Revised EBITDA | DSCR | Verdict |
|---|---|---|---|---|
| PS price −20% (all grades) · Y4+ base | −₹10.2 Cr | ₹37.4 Cr | 10.8× | ✅ Bankable |
| NaOH price +30% | −₹2.53 Cr | ₹45.1 Cr | 13.0× | ✅ Bankable |
| NaOH price +50% | −₹4.22 Cr | ₹43.4 Cr | 12.5× | ✅ Bankable |
| Rice husk price doubles | −₹3.63 Cr | ₹44.0 Cr | 12.7× | ✅ Bankable |
| Utilisation 85% in Y4+ | −₹4.0 Cr | ₹43.6 Cr | 12.6× | ✅ Bankable |
| Dental/FSSAI delayed to Y5 (Y3 impact) | −₹9.5 Cr (Y3) | ₹18.0 Cr (Y3) | 4.9× (Y3) | ✅ Bankable |
| Combined: PS−15% + NaOH+30% + 85% util | −₹16.8 Cr | ₹30.8 Cr | 8.9× | ✅ Bankable |
| Y2 stress: 75% util + PS −10% + NaOH +20% | −₹4.6 Cr (Y2 impact) | ₹6.4 Cr (Y2) | 1.6× (Y2) | ⚠️ Tight · Y2 only · still >1.25× |
| Upside: BCR credits + electricity export | +₹1.0 Cr | ₹48.6 Cr | 14.0× | ⬆ Upside |
| Worst case: PS−25% + NaOH+50% + 75% util + no export | −₹30.5 Cr | ₹17.1 Cr | 4.9× | ✅ Stressed — still above covenant |
No scenario breaches the 1.25× covenant. Even in the worst case (PS price −25% + NaOH +50% + 75% utilisation + no export premium), DSCR = 7.2× — still 5.8× above the minimum covenant. The project's debt service risk profile is exceptionally robust.
Section D1
17Implementation Timeline
Financial close target: Q1 2027. Commissioning target: Month 12 (Q1 2028). All critical path activities identified — DISCOM and TSPCB CTE are the longest-lead regulatory items.
Month 0
Financial close · Land possession · PMC appointed · DISCOM 750 kW application filed (BLOCKER — do first)
Month 1
Customer engagement begins — HDS tyre OEMs (Apollo, MRF) + PCC coatings (Asian Paints). Do not wait for commissioning.
Month 1–2
Engineering freeze · Equipment BOM finalised · 6 priority RFQs sent · TSPCB CTE application filed
Month 2–4
Lab validation — SiO₂ extraction efficiency at CSIR-IICT · NaOH recovery rate (causticisation) · Na-balance. MUST complete before engineering freeze. These are the only two unproven process assumptions.
Month 3–8
Civil construction + equipment procurement · Process building (RCC) · THU/furnace building (fire-rated RCC) · ETP/ZLD · DISCOM HT line
Month 8–10
Equipment installation · Mechanical completion · CEMS certified by TSPCB · CTO application · Water trials
Month 10
FSSAI E551 application filed — 12–18 month clock starts here. Do NOT defer. Dental/food revenue at Year 3 depends on filing at Month 10.
Month 11
Trial samples dispatched to SE Asia PS broker + 2 Indian rubber customers + 1 PCC coatings customer
Month 12
Commercial production begins at 20 TPD PS · First invoices · First export FCL to SE Asia · IES packing credit activated · Y1 ramp at 60% utilisation
Month 18
HDS qualification target — Apollo/MRF/Ceat approved · PS price ₹42→₹72/kg on HDS volume · 75% utilisation · DISCOM connection confirmed at 750 kW
Month 28–30
FSSAI E551 certified · Dental/food PS revenue activated · Colgate/HUL/Dabur pipeline · PS price on dental volume: ₹90–95/kg domestic · ₹144/kg export
Y2+ accruals
Phase 2 planning — second furnace (₹65L) + second production line · Self-funded from accruals · Zero bank debt · Doubles output to ~40 MT/day PS + 60 MT/day PCC
Section E1
18Regulatory Framework
Fluxara qualifies for Orange category (PI 41–59) under CPCB — agro-waste beneficiation is a lower-risk classification. No high-pressure vessels, no IBR boilers. THU operates at atmospheric pressure.
Pre-Commissioning Clearances
| TSPCB CTE | File Month −3 · 6–9 months · Orange category · CEMS mandatory |
| TSPCB CTO | Apply at Month 10 after water trial · Commercial ops Month 12 |
| DISCOM 750 kW HT | TSSPDCL Miryalaguda · Apply Month 0 · CRITICAL PATH BLOCKER |
| Factory Licence | Factories Act — apply during construction |
| ZLD Day 1 | TSPCB mandates ZLD from commissioning — Thermax AMC |
Product Certifications
| IS 6579 | Precipitated silica general · From Month 12 |
| FSSAI E551 | Food-grade silica · File Month 10 · Certified Month 28–30 |
| BIS toothpaste | Year 3+ · Requires FSSAI first |
| REACH pre-reg | EU export · PS + PCC · Year 2 target |
| IEC | Import Export Code · DGFT portal · 2 days · Month 0 |
IBR Act does not apply: The THU (Therminol 55 thermal oil heater) operates at atmospheric pressure. No steam generation, no pressure vessels registered under IBR. This eliminates 8–10 weeks of IBR registration delay and the requirement for a licensed boiler attendant. All heat delivery is via hot oil circuit at 180–220°C.
Section E2
19Risk Matrix
Key risks and mitigations. Two process assumptions require lab validation before engineering freeze — these are the highest-consequence unproven items.
| Risk | Category | Likelihood | Impact | Mitigation |
|---|---|---|---|---|
| SiO₂ extraction efficiency below 88% | Process | Medium | High | Lab validate at CSIR-IICT (Month 2–4) before engineering freeze. Each 1% drop = ~66 MT/yr less PS. |
| NaOH recovery below 82% (causticisation) | Process | Medium | High | Lab trial: Na-balance through full causticisation cycle. This is the #1 pre-commissioning activity. Each 1% shortfall = ₹0.72 Cr/yr more OPEX. |
| Furnace temperature exceeds 700°C | Process | Low | Critical | CEMS-linked auto-shutoff programmed at 720°C. Thermocouple validation at commissioning. Amorphous → cristobalite conversion destroys batch irreversibly. |
| DISCOM 750 kW delay | Regulatory | Medium | High | Apply before financial close. Cannot run 20 TPD PS on 500 kW connection. This is the single biggest pre-CAPEX gate. |
| CTAB supply disruption | Supply | Medium | Medium | Maintain 4-week buffer always. 2 import suppliers minimum. Supply disruption only affects HDS grade — standard PS production unaffected. EBITDA still positive on standard grade alone. |
| NaOH price spike (+30%) | Market | Medium | Medium | Long-term supply agreement with Grasim/DCW. Sensitivity tested: NaOH +50% → DSCR still 18.0×. Risk is contained. |
| PS export price drop | Market | Low | Medium | Commodity PS price has structural floor at domestic ₹26/kg. Export ₹42/kg is SE Asia benchmark. Sensitivity: PS −25% → DSCR still 7.2× in worst case. Domestic fallback always available. |
| TSPCB CTE delay beyond 9 months | Regulatory | Low | Medium | File at Month −3 with full documentation package. Environmental consultant to manage. Orange category has faster track than Red. ZLD Day 1 demonstrates compliance intent. |
| RHA quality below 90% SiO₂ | Supply | Low | Medium | Contractual spec clause: ≥90% SiO₂ or price adjustment. XRF QC on every delivery. Multiple supplier relationships (3+ rice mills) before commissioning. |
Appendix
ALocked Design Assumptions — v17
These parameters must not be changed in any modelling without full revision of the DPR. Unproven assumptions are flagged for lab validation before engineering freeze.
| # | Parameter | Value | Status | Evidence |
|---|---|---|---|---|
| 01 | Operating days/year | 330 | LOCKED | Industry standard for continuous chemical plants |
| 02 | RHA SiO₂ content | 92% | LOCKED | Amorphous SiO₂ at combustion ≤700°C — literature + Indian RHA data |
| 03 | SiO₂ extraction efficiency | 88% | UNPROVEN — LAB | Literature range 85–93%; lab validate at CSIR-IICT Month 2–4 |
| 04 | NaOH recovery (causticisation) | 82% | UNPROVEN — LAB | Industry benchmark 80–88%; highest-priority lab validation |
| 05 | NaOH fresh makeup | 6.7 MT/day = 14 MT/day lye | DERIVED | From 82% recovery assumption; will lock post-lab |
| 06 | CaO purity minimum | ≥85% | LOCKED | XRF verify every delivery; Piduguralla standard grade |
| 07 | Furnace temperature hard limit | ≤700°C | NON-NEGOTIABLE | Above 700°C: amorphous → cristobalite; CEMS auto-shutoff at 720°C |
| 08 | TPC (pending RFQs) | ₹24 Cr (range ₹23–26 Cr) | RFQ PENDING | 6 priority RFQs needed to lock ±10% accuracy |
| 09 | Export pricing from Y1 | ₹42/kg PS FOB SE Asia | LOCKED | SE Asia commodity benchmark; COA only qualification |
| 10 | CO₂ source | 100% internal from flue gas | LOCKED | Zero purchase cost; piped directly to precipitation reactor |
| 11 | Phase 2 funding | Self-funded, Y2+ accruals only | LOCKED | No bank debt for Phase 2; requires new furnace — 21 GJ/day surplus insufficient |
| 12 | Heating system | THU (Therminol 55, atmospheric) | LOCKED — NO IBR | Forbes Marshall / Thermax; no IBR registration; no boiler attendant licence |
Document control: This DPR (v17) supersedes all prior versions. v16 ₹19.13 Cr TPC was based on 13 TPD PS — discarded. v15 ₹30.96 Cr was import-basis pricing — discarded. All modelling must use v17 figures. Next version triggered by: completion of 6 priority RFQs, lab validation results, or site DISCOM letter.
Fluxara Advanced Renewables & Applications Pvt Ltd
CIN: U35106TS2026PTC210706 · DPIIT: 246192
Miryalaguda, Nalgonda, Telangana · Promoted via M/S Surya Industries
DPR Version 17 · September 2026
Confidential — Banking & Investor Submission
Not for distribution without written consent