Revenue (at util%)
—
—
OPEX (at util%)
—
—
EBITDA
—
—
DSCR (moratorium Y1)
—
—
Net Cash (Y1)
—
—
Break-even Util%
—
At current assumptions
P&L Summary — Current Assumptions
| Line | ₹ Cr/yr | vs DPR v16 base |
|---|---|---|
| Revenue | — | — |
| Variable OPEX | — | — |
| Fixed OPEX | — | ₹3.72 Cr |
| Total OPEX | — | — |
| EBITDA | — | — |
| Interest (moratorium) | — | — |
| Net Cash (Y1) | — | — |
Key Operational Metrics
| Metric | Value |
|---|---|
| NaOH recovery rate | — |
| NaOH makeup / day (48% lye) | — |
| NaOH cost / MT RHA | — |
| PS output at current util | — |
| PCC output at current util | — |
| Contribution / MT RHA | — |
| Break-even PS price | — |
| Blended PS price | — |
| Blended PCC price | — |
Year-by-Year P&L (standard grade pricing throughout — floor scenario)
| Year | Util% | Revenue | OPEX | EBITDA | EBITDA% | DS | DSCR | Net Cash |
|---|
* Y1 moratorium: DS = interest only (₹1.30 Cr at ₹12.43 Cr debt). Y2+ DS = ₹2.66 Cr/yr. Phase 1B revenue from Y2 onward (75% util, 19.60 MT/day RHA). DPR v16: TPC ₹19.13 Cr · Debt ₹12.43 Cr · Equity ₹6.70 Cr. Export pricing throughout.
Variable OPEX — Per Line Item (at 100% Phase 1A)
| Item | Qty/yr (MT) | Price | ₹ Cr/yr | DPR v15 | Δ |
|---|---|---|---|---|---|
| NaOH 48% lye | — | — | — | ₹5.49 Cr (v15/v16) | — |
| Rice husk | 6,600 MT | — | — | ₹3.63 Cr (v15/v16) | — |
| CaO quicklime | 4,410 MT | — | — | ₹2.65 Cr (v15/v16) | — |
| CTAB | 95.4 MT | — | — | ₹1.72 Cr (HDS only) | — |
| Stearic acid | 53.5 MT | — | — | ₹0.64 Cr (sealant only) | — |
| Purchased RHA | 3,773 MT | — | — | ₹0.28 Cr (v15/v16) | — |
| Packing + transport | — | — | ₹1.20 | ₹1.20 Cr | ₹0 |
| Electricity (variable) | — | — | ₹0.49 | ₹0.49 Cr | ₹0 |
| Variable subtotal (100%) | — | ₹13.74 Cr (v16 base) | — |
Fixed OPEX (does not scale with utilisation)
| Item | ₹ Cr/yr |
|---|---|
| Electricity (base grid load) | ₹1.00 |
| Labour (25 staff avg ₹4.8L CTC) | ₹1.20 |
| Maintenance (2% of fixed assets) | ₹0.65 |
| Admin + insurance + other | ₹0.87 |
| Fixed subtotal | ₹3.72 |
OPEX at Current Utilisation (60%)
| Item | ₹ Cr/yr |
|---|---|
| Variable (scaled to util%) | — |
| Fixed (unchanged) | ₹3.72 |
| Total OPEX at util% | — |
| DPR v16 base (60%, export PS ₹42, no CTAB/stearic) | ₹11.96 Cr |
| DPR v15 was (60%, incl CTAB/stearic, domestic ₹26) | ₹13.38 Cr |
OPEX Waterfall — Top 5 Costs
Revenue Breakdown at Current Utilisation
| Stream | Vol (MT/yr) | Price | ₹ Cr/yr | Share% |
|---|---|---|---|---|
| Precipitated Silica | — | — | — | — |
| Nano-PCC | — | — | — | — |
| Desilicated residue | — | — | — | — |
| Total Revenue | — | 100% |
Revenue at All Utilisation Levels (current prices)
| Util% | Revenue | Var OPEX | EBITDA | Margin% |
|---|
Multi-Year P&L with Phase 1B (Month 18) — Current Assumptions
| Year | Util% | Phase | Revenue | Var OPEX | Fixed | EBITDA | EBITDA% | DS | DSCR |
|---|
Phase 1B (Month 18): adds 4.568 MT/day purchased RHA, from Y1 accruals (₹1.50 Cr capex — not in bank debt). DPR v16: ₹12.43 Cr debt, DS = ₹2.66 Cr/yr post-moratorium vs ₹4.07 Cr in DPR v15. Savings of ₹1.41 Cr/yr on DS alone.
Contribution/MT RHA
—
Revenue minus variable cost
Break-even PS price
—
PCC at current price subsidises
Variable cost/MT RHA
—
No fixed overhead
PCC subsidy to PS
—
% of VC covered by PCC alone
NaOH cost/MT RHA
—
Largest single variable cost
Each 1% NaOH recovery
—
Saving/yr at 100% Phase 1A
Variable Cost Stack — Per MT RHA
| Component | ₹/MT RHA | % of VC |
|---|---|---|
| NaOH 48% lye | — | — |
| CaO quicklime | — | — |
| Packing + transport | — | — |
| Electricity (variable) | — | — |
| RHA (purchased) | — | — |
| CTAB (if included) | — | — |
| Stearic acid (if included) | — | — |
| Total Variable Cost | — | 100% |
Break-even PS Price at Different PCC Prices
| PCC Price | Min PS (₹/kg) | vs Standard | Status |
|---|
Contribution at Different Price Scenarios
| Scenario | PS ₹/kg | PCC ₹/kg | Contrib/MT | Ann. (100%) |
|---|
Floor EBITDA at Different Utilisation Levels — Current Prices
| Scenario | RHA MT/d | Annual MT | Contribution | Fixed OPEX | EBITDA | DSCR (morat) | Net Cash |
|---|
Add-On Capital Projects — ROI Updates with Current Assumptions
| Project | Capex | Saving/yr | EBITDA/yr | Payback | Fund From | Priority |
|---|---|---|---|---|---|---|
| ▶ COMMISSION DAY 1 — include in commissioning budget | ||||||
| Draft-tube causticiser NaOH 82→87% + sealant PCC direct (d50 0.5–0.8µm) |
₹0.35 Cr | — | — | — | Commission budget | P1 NOW |
| CaO slaking HX (plate heat exchanger) 15.2 GJ/day slaking exotherm → NaOH feed pre-heat |
₹0.12 Cr | — | — | 0.8 yr | Commission budget | P1 NOW |
| Spray dryer WHR recuperator 6.5 GJ/day exhaust → inlet air pre-heat |
₹0.08 Cr | — | — | 0.8 yr | Commission budget | P1 NOW |
| ▶ Y1 MINOR CAPEX — fund from early operating cash | ||||||
| ETP: solar evaporation pond (0.25 acre) HDPE-lined, 2000 mm/yr Sangareddy evaporation → reduce ZLD duty |
₹0.05 Cr | ₹0.04 Cr | ₹0.04 Cr | 1.3 yr | Y1 cash | P2 Y1 |
| ETP: fish pond (0.5 acre catla/rohu) ZLD polished water → aquaculture → ₹130/kg at Sangareddy market |
₹0.07 Cr | ₹0.03 Cr | ₹0.03 Cr | 2.3 yr | Y1 cash | P2 Y1 |
| ETP: ZLD salt cake Na₂CO₃ partial recovery 30–40 MT/yr; avoids disposal fee + ₹10,000/MT revenue |
₹0.15 Cr | ₹0.06 Cr | ₹0.06 Cr | 2.5 yr | Y1 cash | P2 Y1 |
| Solar +150 kWp (to DISCOM 400 kWp cap) 80% of 500 kW sanction = 400 kWp max; DPR has 250 kWp; +150 kWp incremental |
₹0.45 Cr | — | — | — | Y1-Y2 accruals | P2 Y2 |
| ▶ Y2 ACCRUALS — after Phase 1B revenue established | ||||||
| CO₂ bottling plant (1.5 MT/day industrial) MEA absorption; stripper heat from THU surplus (4.5 GJ/day, zero cost); 495 MT/yr |
₹1.50 Cr | — | — | — | Y2 accruals | P3 Y2 |
| TOTAL (all add-on projects) | ₹2.77 Cr | — | — | 1.4 yr avg | ||
Y1 Cash Waterfall (Full Optimisation Scenario)
| Item | ₹ Cr |
|---|---|
| EBITDA (export PS ₹42/kg, no CTAB/stearic, 60% util) | — |
| Less: moratorium interest (₹12.43 Cr × 10.5%) | — |
| T-IDEA SGST rebate (Y1–Y5) | +₹1.26 Cr |
| Total Y1 deployable cash | — |
| Phase 1B capex (non-negotiable first priority) | −₹1.50 Cr |
| Heat integration (commission budget) | −₹0.20 Cr |
| ETP innovations | −₹0.27 Cr |
| Solar +150 kWp (net post-subsidy) | −₹0.32 Cr |
| Remaining for CO₂ plant (Y2) | — |
MVR — Already in DPR (Mandatory)
| Metric | Value |
|---|---|
| MVR capex | ₹1.50 Cr (in DPR) |
| Evap heat without MVR | 167.1 GJ/day |
| Evap heat with MVR | 58.5 GJ/day (−65%) |
| Heat saved | 108.6 GJ/day |
| Without MVR: thermal deficit | −25.6 GJ/day → plant stops |
| Thermal surplus with MVR (Y1) | 83 GJ/day |
| THU type | Therminol 55 / Dowtherm A |
| THU operating temp | 180–220°C, atmospheric |
MVR is mandatory from Day 1. The ₹1.50 Cr is already in the bank term loan. This is not an "add-on" — it is foundational to plant operation.
EBITDA Sensitivity — Change in Key Assumptions from Current (₹ Cr/yr at current utilisation)
| Assumption | −30% | −20% | −10% | Base | +10% | +20% | +30% |
|---|
Positive sensitivities (prices go up = good) shown in green. Negative (cost goes up = bad) shown in red. Base = current assumptions in sidebar.
Scenario Comparison (at 60% utilisation)
| Scenario | OPEX | Revenue | EBITDA | DSCR (morat) | Net Cash Y1 |
|---|
Product Qualification Tracks
| Grade | Qual. Time | Revenue Live | Spec | Target Customers |
|---|---|---|---|---|
| Bulk PCC — Coatings | 2–3 months | Day 1 (Month 2) | 2 µm d50, brightness ≥97 | Asian Paints, Berger, Nerolac |
| Standard PS | 1–2 months | Day 1 (Month 1) | BET 140–165 m²/g | GCC rubber compounders, animal feed |
| Sealant PCC (stearic coated) | 4–6 months | Month 6 | 0.7 µm d50, stearic coated | Pidilite, Sika, Henkel |
| HDS PS (Green Tyre) | 6–12 months | Month 15–18 | CTAB ≥175 mg/g, CIPD ≥80% | Apollo, MRF, Ceat, JK Tyre, BKT |
| Dental / Food PS (FSSAI E551) | 18–24 months | Y3 (Month 36) | Pb ≤1 ppm, d50 ≤12 µm | Colgate, HUL, Dabur, export pharma |
Revenue Unlock Sequence
| Month | Milestone | Rev Impact |
|---|---|---|
| Month 1–2 | Std PS + bulk PCC — first commercial sales | +₹6–8 Cr/yr base |
| Month 6 | Sealant PCC qualification complete | PCC: ₹10→₹26/kg |
| Month 10 | FSSAI E551 application filed (dental PS) | 18M cycle begins |
| Month 12 | Commercial production at full commissioning | Full Phase 1A |
| Month 15–18 | HDS qualification at Apollo/MRF/Ceat | PS: ₹26→₹46–50/kg |
| Month 18 | Phase 1B installed from Y1 accruals | +₹9 Cr/yr |
| Month 36 | FSSAI E551 certified + dental revenue live | PS: up to ₹92/kg |
Implementation Timeline — Key Milestones
Month 0
Financial close · land possession · PMC appointed
Equity infusion · bank drawdown · site mobilisation
Equity infusion · bank drawdown · site mobilisation
Month 1
Customer engagement begins
HDS qualification samples planned · PCC coatings first contact · engineering freeze
HDS qualification samples planned · PCC coatings first contact · engineering freeze
Month 2–4
Lab validation
Causticisation recovery trial (target 82%+) · SiO₂ extraction validation · Na-balance · draft-tube causticiser install decision
Causticisation recovery trial (target 82%+) · SiO₂ extraction validation · Na-balance · draft-tube causticiser install decision
Month 3–8
Civil + equipment procurement
THU (thermal heating unit with oil) · MVR evaporator · leach reactors · filter presses · spray dryers · ETP+ZLD · CEMS installation
THU (thermal heating unit with oil) · MVR evaporator · leach reactors · filter presses · spray dryers · ETP+ZLD · CEMS installation
Month 8–10
Equipment installation · mechanical completion
E&I wiring · SCADA commissioning · TSPCB CEMS certification
E&I wiring · SCADA commissioning · TSPCB CEMS certification
Month 10
FSSAI central licence application filed
12–18 month cycle; file at commissioning, not later
12–18 month cycle; file at commissioning, not later
Month 11
Trial samples to target customers
PS BET/PSD characterisation · PCC particle size / brightness · HDS qualification batch
PS BET/PSD characterisation · PCC particle size / brightness · HDS qualification batch
Month 12
Commercial production begins
Standard PS + bulk PCC · 60% utilisation ramp-up · first invoices
Standard PS + bulk PCC · 60% utilisation ramp-up · first invoices
Month 18
Phase 1B from Y1 accruals (₹1.50 Cr)
+4.568 MT/day RHA · +3.996 MT/day PS · +6.160 MT/day PCC · export stream activated
+4.568 MT/day RHA · +3.996 MT/day PS · +6.160 MT/day PCC · export stream activated
Month 36 (Y3)
FSSAI E551 certified · dental/food revenue live
PS price ₹92–95/kg · Colgate/HUL/Dabur offtake · export pharma enquiries
PS price ₹92–95/kg · Colgate/HUL/Dabur offtake · export pharma enquiries
Site Scorecard — Kothakota (Wanaparthy) vs Alternatives
| Factor | Kothakota / Wanaparthy | TSIIC Sangareddy | Generic TSIIC Rural | Weight |
|---|---|---|---|---|
| Land cost | ₹30L/acre · 12 ac = ₹3.60 Cr total | ₹1 Cr/acre · 3 ac = ₹3.00 Cr (confined) | ₹20–40L/acre | ★★★★ |
| Expansion room | 12 acres → Phase 2 + 1 MW solar + ETP ponds | 3 acres — Phase 2 impossible on-site | Depends on purchase | ★★★★★ |
| Distance from Hyderabad | ~130 km · 3–3.5 hr drive | ~55 km · 1 hr drive | 80–150 km typical | ★★★ |
| NaOH tanker access | NH-44 / SH route — check last-mile road quality | NH-65, excellent logistics | Varies | ★★★★★ |
| CaO proximity (Piduguralla) | ~190 km (via Nandyal) | ~170 km (via Miryalaguda) | 150–200 km typical | ★★★ |
| Rice husk supply | Wanaparthy, Gadwal rice mills nearby | Medak, Nizamabad — 60–80 km | Varies by region | ★★★★ |
| Water (groundwater) | Krishna basin edge — good aquifer. Verify 150+ KLD borewell yield | Groundwater declining; industrial water supply needed | Survey required | ★★★★★ |
| DISCOM power reliability | TSSPDCL rural feeder — 6–10 hr cuts possible; DG + solar mitigates | Industrial feeder, <2 hr cuts/month | Rural: 4–8 hr cuts | ★★★★ |
| Skilled workforce | Limited local pool; need housing incentive / transport | Industrial corridor; easy hire | Thin local pool | ★★★ |
| TSPCB consent speed | District TSPCB office — 4–6 months | TSIIC industrial zone — 3–4 months | 3–6 months | ★★ |
| Verdict | STRONG if checklist passes (see below) | Good infra, limited expansion | Case by case |
Kothakota Go / No-Go Checklist — Verify Before Purchase
| # | Test | Minimum Pass | How to verify |
|---|---|---|---|
| 1 | Borewell test | 2 borewells · 150+ KLD combined | Hydrogeology survey ₹30–50K; test borewell before land deal |
| 2 | Tanker road access | 26-tonne NaOH tanker can reach site gate | Drive a truck physically; check culvert load ratings |
| 3 | DISCOM 500 kW sanction | TSSPDCL confirms 500 kW HT/LT at site feeder | Written feasibility from TSSPDCL Wanaparthy before signing |
| 4 | Title clear + patta | Single patta, no encumbrance, no court dispute | Dharani portal + local advocate search |
| 5 | Zoning / land use | Industrial/agro-industrial conversion possible | Collector office + DTCP; avoid SRA land |
| 6 | Flood zone | Not in flood-prone area (Krishna basin check) | NDMA flood map + local knowledge of last 10yr floods |
| 7 | Rice husk within 30 km | At least 3 rice mills within 30 km, 50+ MT/day capacity | Drive and meet mill owners; get informal commitment |
If all 7 pass: buy Kothakota. 12 acres at ₹30L/acre = ₹3.60 Cr total. Use saved land money (vs TSIIC ₹3 Cr/3 acres) for Phase 2 foundation and solar. The 9 extra acres are a free option on ₹15+ Cr Phase 2 expansion.
Land Strategy — What to Prioritise
| Priority | Rationale |
|---|---|
| 1. Expansion room > cheap price | 12 acres lets you run Phase 2 (₹15+ Cr, 3× revenue) without acquiring adjacent land. In 5 years TSIIC Sangareddy will have no room to expand. |
| 2. Water > everything | 84 KLD Phase 1A, 110 KLD Phase 1B. A dry borewell can kill the project. Verify first, negotiate price second. |
| 3. Tanker road access > proximity to Hyd | NaOH is hazmat — 3 tankers/week. If the last 5 km are broken track roads you will pay ₹3,000+ per trip extra and risk refusals. More important than distance to Hyd. |
| 4. Closest to Hyd is lowest priority | 3.5 hr is manageable with the right management structure. Proximity adds ₹2–3 Cr to land cost and limits expansion — poor trade-off. Remote is fine if managed right. |
Remote Management Architecture — 95–98% Efficiency from 130 km Away
The Core Principle
A 3.5 hr commute rules out daily supervision. What you need instead is a self-running plant where you manage outcomes, not activities. This requires: (1) strong plant manager as your proxy, (2) process automation so operators monitor alarms — not tune parameters, (3) contractor AMCs so you buy uptime SLAs not headcount, (4) a KPI dashboard you can read on your phone at 7 AM.
Guardrails — Non-Negotiable
| # | Guardrail | How |
|---|---|---|
| 1 | Morning report by 6 AM daily | Plant manager sends WhatsApp report: production MT, NaOH consumed, any downtime, QC pass/fail |
| 2 | SCADA mobile access | Ignition SCADA perspective app — live pH, temperatures, flow rates on your phone |
| 3 | Spend authority matrix | Plant manager: up to ₹50K self; up to ₹2L WhatsApp approval; above ₹2L formal PO from Hyd office |
| 4 | CCTV / IP camera | 4–6 cameras on critical points (chemical storage, reactor area, loading bay, main gate) — live on phone |
| 5 | Daily batch record in ERP | Every batch: raw material lot, quantities, QC result, dispatch note — no paper-only records |
| 6 | Fortnightly site visit | Promoter visits every 2 weeks (stay 1–2 nights). Monthly full review meeting with all division heads. |
| 7 | PLC auto-shutoff | Temperature, pH, pressure limits trigger alarm + auto-shutoff. No operator discretion on safety parameters. |
| 8 | NaOH inventory alert | Minimum 7-day stock trigger auto-PO to supplier. Never run out — NaOH is the single-point-of-failure input. |
Cadence of Oversight
| Frequency | Who | What |
|---|---|---|
| Daily 6 AM | Plant Manager → Promoter | WhatsApp: production, inputs, issues, QC status |
| Weekly Friday | Plant Manager video call | 30-min review: weekly output vs target, raw material levels, upcoming orders, any maintenance |
| Fortnightly | Promoter on-site | Physical inspection, operator interactions, contractor review, bank/customer visits if needed |
| Monthly | All division heads | P&L review, KPI vs targets, contractor SLA review, next month plan |
| Quarterly | CSIR-IICT / IIT advisor | Process optimisation review, NaOH recovery audit, product quality benchmarking |
Technology Stack for Remote Management
| Tool | Purpose | Cost |
|---|---|---|
| Ignition SCADA (Inductive Automation) | Live process data, alarms, trends on mobile | ~₹3–5L one-time |
| IP CCTV (Hikvision/Dahua) | Visual monitoring of plant floor | ~₹1–2L |
| ERP lite (Zoho Books / Tally Prime) | Batch records, purchase orders, invoicing | ₹20–40K/yr |
| WhatsApp Business + Google Workspace | Daily ops communication, shared dashboards | ₹5–10K/yr |
| GPS fleet tracking on tankers | Know when NaOH delivery is arriving | ₹500/vehicle/month |
Organisation Architecture — Promoter-Led Hybrid Model
MANAGEMENT DIVISION
Hyderabad HQ (You)
Hyderabad HQ (You)
• Raw material procurement
• Customer relationships
• Export & documentation
• Finance, banking, compliance
• Contract management
• IP protection
• Strategic decisions
• Customer relationships
• Export & documentation
• Finance, banking, compliance
• Contract management
• IP protection
• Strategic decisions
Headcount: 1 promoter + 1 admin + 1 accounts
PLANT MANAGER
On-site (Critical hire)
On-site (Critical hire)
• Day-to-day ops oversight
• All 4 divisions report here
• Contractor liaison
• Daily report to promoter
• Emergency authority
• Recruitment + HR on-site
• TSPCB compliance
• All 4 divisions report here
• Contractor liaison
• Daily report to promoter
• Emergency authority
• Recruitment + HR on-site
• TSPCB compliance
CTC: ₹18–24L/yr · 15+ yr exp chemical plant
PROCESS DIVISION
Own staff + NDA
Own staff + NDA
• Leaching + precipitation
• Causticisation + PCC
• Spray drying
• Batch record keeping
• 3 shifts × 2 operators
• 1 process chemist (day)
• Strict IP NDAs
• Causticisation + PCC
• Spray drying
• Batch record keeping
• 3 shifts × 2 operators
• 1 process chemist (day)
• Strict IP NDAs
Headcount: 7 own staff · Cost: ₹42L/yr
UTILITIES DIVISION
Contracted AMC
Contracted AMC
• ETP/ZLD: Thermax AMC
• THU: Forbes Marshall AMC
• Solar: Installer AMC
• DG: Kirloskar AMC
• MVR: IPEC AMC
• All on SLA: 98% uptime
• No own hire for utilities
• THU: Forbes Marshall AMC
• Solar: Installer AMC
• DG: Kirloskar AMC
• MVR: IPEC AMC
• All on SLA: 98% uptime
• No own hire for utilities
AMC cost: ~₹40L/yr · Zero own headcount
QC / LAB DIVISION
Hybrid model
Hybrid model
• 1 own QC technician (on-site)
• Daily BET, PSD, pH testing
• Monthly external: NABL lab
• Quarterly: CSIR-IICT Hyd
• Annual: IIT-H process audit
• COA certification for export
• FSSAI samples management
• Daily BET, PSD, pH testing
• Monthly external: NABL lab
• Quarterly: CSIR-IICT Hyd
• Annual: IIT-H process audit
• COA certification for export
• FSSAI samples management
Cost: ₹8L own + ₹6L external = ₹14L/yr
MAINTENANCE DIVISION
1 resident + AMCs
1 resident + AMCs
• 1 resident maintenance tech
• Daily preventive maintenance
• Manages spare parts store
• Escalates to vendor AMC
• Handles electrical issues
• Filter press operation
• Lubrication schedules
• Daily preventive maintenance
• Manages spare parts store
• Escalates to vendor AMC
• Handles electrical issues
• Filter press operation
• Lubrication schedules
Cost: ₹6L own + ₹10L spares/consumables
INSTITUTIONAL EXPERTISE
Advisory layer
Advisory layer
• CSIR-IICT: Process troubleshoot
• IIT Hyderabad: Optimization
• NITW: Internship pipeline
• Commissioning consultant: First 6 months only
• PDIL or similar: Startup support
• IP attorney: Patent + NDA drafting
• IIT Hyderabad: Optimization
• NITW: Internship pipeline
• Commissioning consultant: First 6 months only
• PDIL or similar: Startup support
• IP attorney: Patent + NDA drafting
Cost: ₹8–12L/yr advisory retainers
IP PROTECTION
Non-negotiable layer
Non-negotiable layer
• All operators: signed NDA
• Process recipe in SCADA only (no paper)
• Operators see alarms, not ratios
• Key process params: promoter + PM only
• CTAB/surface treatment: locked cabinet
• HDS recipe: separate access level
• Export price list: confidential
• Process recipe in SCADA only (no paper)
• Operators see alarms, not ratios
• Key process params: promoter + PM only
• CTAB/surface treatment: locked cabinet
• HDS recipe: separate access level
• Export price list: confidential
Cost: ₹2–3L/yr (legal + SCADA access mgmt)
Total Cost of Proposed Structure (₹ Cr/yr)
| Division | Own Staff Cost | Contractor / AMC | Total |
|---|---|---|---|
| Management (Hyd HQ) | ₹12L | — | ₹12L |
| Plant Manager | ₹22L | — | ₹22L |
| Process Division (7 staff) | ₹42L | — | ₹42L |
| Utilities (AMC only) | ₹0 | ₹40L | ₹40L |
| QC / Lab | ₹8L | ₹6L | ₹14L |
| Maintenance (1 own + spares) | ₹6L | ₹10L | ₹16L |
| Institutional (CSIR-IICT, IIT-H) | — | ₹10L | ₹10L |
| IP / Legal | — | ₹3L | ₹3L |
| Total | ₹90L | ₹69L | ₹1.59 Cr/yr |
| DPR v16 budgeted labour | ₹1.20 Cr/yr (25 staff) | ₹1.20 Cr base | |
| Delta (restructured vs DPR) | +₹0.39 Cr/yr | ||
The +₹0.39 Cr incremental cost buys: (1) 98%+ equipment uptime via AMCs, (2) zero specialist hiring (ETP engineer, boiler engineer, etc.), (3) institutional process knowledge you can't build in 2 years, (4) legal IP protection. At ₹15 Cr+ annual revenue, this is a 2.6% overhead — not a cost, an insurance policy.
Commissioning Strategy — First 6 Months (Critical for New Promoter)
| Month | Action | Who |
|---|---|---|
| M −3 to M0 | Hire plant manager before equipment arrives — they oversee installation | Promoter recruits via Naukri/HeadHunters India |
| M0–M6 | Commissioning consultant on-site full time (PDIL/private ChemE) | Contract: ₹3–5L/month for 6 months |
| M1–M3 | CSIR-IICT NaOH recovery lab trial at pilot scale before full commissioning | CSIR-IICT MOU, samples from first run |
| M6 | Commissioning consultant exits; CSIR-IICT moves to quarterly advisory | Plant Manager now fully independent |
| M6–M12 | Operate at 60% intentionally — learn before pushing throughput | All divisions; weekly ops review |
| M12+ | Ramp to 75–90% with institutional confidence. Push NaOH recovery to 85%+ | Process Division + IIT-H optimization |
Operations Model — Shift Structure & Automation
24×7 is Non-Negotiable for This Process
Wet chemistry with continuous NaOH circuit, MVR evaporator, and spray dryers cannot safely start/stop daily. A 16-hr or 12-hr shift model would: (1) waste 8–12 GJ/day bringing THU to temperature, (2) risk crystallisation and scaling in evaporator circuits on cool-down, (3) reduce effective capacity to 55–67% of design. The economics of Phase 1A require 330 days × 24 hrs — full stop.
Minimum Staffing Per 8-Hour Shift
| Role | Per Shift | Shift type | Notes |
|---|---|---|---|
| Chemical process operator | 2 | All 3 shifts | Monitors PLC alarms, manages filter press loading |
| Helper / packer | 1 | All 3 shifts | Bagging, labelling, stacking — manual |
| Shift supervisor | 1 | Day + Evening | Night shift: senior operator acts as supervisor |
| Process chemist (QC) | 1 | Day shift only | Sampling, COA, daily batch testing |
| Plant manager | 1 | Day shift only | On-call 24×7 for emergencies |
| Maintenance technician | 1 | Day shift only | On-call for night breakdown via AMC escalation |
| Total own headcount | 13 persons (9 shift operators/helpers + 4 day-shift specialists) | ||
Automation Level by Process Step
| Process Step | Automation% | What remains manual |
|---|---|---|
| RHA weighing + feed | 80% | Bag slitting, conveyor jam clearing |
| NaOH dilution + dosing | 90% | Tank top-up verification |
| Leach reactors (temp, pH, time) | 85% | Visual check, sample grab |
| CO₂ precipitation (pH-stat) | 95% | Sample for BET verification |
| Filter press (PS) | 50% | Loading cloth, opening, cake discharge — unavoidably manual |
| Causticisation (draft-tube) | 90% | CaO bin refill (3×/day) |
| CaO slaking | 85% | Quicklime unloading from truck |
| MVR evaporator | 95% | Scale inspection monthly |
| Spray dryer | 90% | Nozzle inspection, bag change |
| ETP / ZLD | 95% | Salt cake removal (weekly) |
| Bagging + labelling | 20% | Almost entirely manual — highest labour intensity point |
| Overall plant | ~80% | Filter press + bagging are the manual bottlenecks |
80% automation means 2 operators per shift can monitor a 15 MT/day plant. The PLC handles temperature, pH, flow, timing. Operators respond to alarms and handle the physical steps that chemistry cannot automate.
O&M Cost Model & Critical Spares Inventory
AMC Structure — Buy Uptime, Not Headcount
| System | Contractor | AMC ₹/yr | SLA guarantee |
|---|---|---|---|
| ETP + ZLD (25 KLD) | Thermax Enviro / Enviro Labs Hyd | ₹10–14L | 98% uptime, 24hr response, quarterly service |
| THU + thermal circuit | Forbes Marshall (Pune) | ₹6–9L | Annual strip-down, oil analysis, safety cert renewal |
| Spray dryers (×2) | Raj Process Equipments (Pune) | ₹5–8L | Nozzle, atomizer, bag filter replacement; 48hr callout |
| MVR evaporator | IPEC Pune / original vendor | ₹4–6L | Compressor bearing, seals; scale cleaning protocol |
| Filter presses (×2) | Star Filter Press / local | ₹2–4L | Cloth replacement, plate inspection semi-annual |
| Solar PV (250 kWp) | Installer AMC | ₹2–3L | Cleaning, inverter check, performance guarantee |
| DG set (200 kVA) | Kirloskar service | ₹2–3L | Running hours-based service, load bank test quarterly |
| SCADA + instrumentation | Systems integrator | ₹2–3L | PLC firmware, sensor calibration, alarm management |
| Total AMC | ₹33–50L/yr | Avg ₹42L — already in OPEX model |
Critical Spares — 90-Day Buffer (₹30–35L one-time stock)
| Item | Qty | ₹ | Why critical |
|---|---|---|---|
| Filter press cloth sets (full replacement) | 2 sets | ₹8L | Wears every 60–90 days; no plant without it |
| Centrifugal pump impellers + seals | 5 sets | ₹5L | NaOH corrodes; 6-month replacement cycle |
| MVR compressor seals + bearings | 1 set | ₹5L | 12–18 month life; long lead-time item |
| pH electrodes (glass, combination) | 12 | ₹2L | Consumable; 2–3 month life in NaOH service |
| THU Therminol 55 oil (top-up) | 200 L | ₹4L | Annual top-up; degrade under air ingress |
| Spray dryer nozzles + atomizer tips | 6 | ₹3L | High wear; affects particle size consistency |
| PLC I/O cards (S7-1200 modules) | 2 | ₹3L | Failure = plant stop; 2-week import lead time |
| Pressure relief valves (set-point tested) | 3 | ₹3L | Safety-critical; must be tested annually |
| NaOH tank HDPE liner repair kit | 1 | ₹2L | Weld repair kit for HDPE/PP-lined vessels |
| Total 90-day spares | ₹35L | One-time investment; kept on shelf at plant | |
Rule: Never let spares drop below 30-day minimum for consumables (pH electrodes, filter cloths, nozzles). Plant manager's standing order: reorder trigger at 50% of buffer stock. A single filter press cloth failure with no spare = 8–12 hr plant stoppage = ₹2–3L lost production.
Workforce Plan — Captive + Contract Model
Full Headcount at Steady State (Phase 1A, 24×7)
| Role | Type | Count | CTC ₹L/yr | Lives on-site? |
|---|---|---|---|---|
| ▶ OWN PAYROLL — IP-sensitive, permanent | ||||
| Plant Manager | Own | 1 | 22 | Yes — 2BHK on-site |
| Process chemist / QC | Own | 1 | 8 | Yes — 1BHK (Mon–Fri) |
| Shift operators (chemical) | Own | 6 | 4–5 each | 2 on-site · 4 local commute |
| Maintenance technician | Own | 1 | 5 | On-site · 1BHK |
| Admin / accounts | Own | 1 | 4 | Wanaparthy town commute |
| Security guards | Own | 2 | 3 each | Rotating · quarters on-site |
| ▶ LABOUR CONTRACT — via registered contractor | ||||
| Helpers / packers (3 shifts) | Contract | 9 | 2.5–3 each | Local village pool; transport allowance |
| Cleaning / housekeeping | Contract | 2 | 2 each | Local |
| Driver (for tanker + product) | Contract | 1 | 3 | Local |
| ▶ AMC / THIRD-PARTY (no headcount, billed as OPEX) | ||||
| ETP/ZLD operator (Thermax) | AMC | — | — | Visits per contract schedule |
| THU service (Forbes Marshall) | AMC | — | — | Quarterly + on-call |
| Total own payroll headcount | 12 | ~₹70L/yr | 5 captive on-site · 7 commute | |
| Contract workers (via contractor) | 12 | ~₹36L/yr | Local daily | |
Captive Accommodation Plan (on 12-acre site)
| Unit | Spec | Count | Capex ₹L |
|---|---|---|---|
| Plant Manager residence | 2BHK · 850 sqft · RCC · semi-furnished | 1 | 12 |
| Technical staff quarters | 1BHK · 450 sqft each · block design | 4 units | 20 |
| Security cabin + quarters | Main gate cabin + 2 sleeping rooms | 1 | 3 |
| Canteen / mess | Basic kitchen + dining for 30 people; contractor-run | 1 | 4 |
| Visitor / promoter room | 2-room guesthouse for fortnightly visits | 1 | 5 |
| Total accommodation capex | ₹44L |
Accommodation is a retention tool, not a luxury. A plant manager who lives on-site responds to a 2 AM alarm in 5 minutes. A plant manager who commutes 40 km avoids night calls. For ₹44L you buy 24×7 operational coverage and dramatically reduce turnover risk for your two most critical roles. Build it before commissioning.
Canteen / Mess — Contract It Out
Give canteen contract to a local caterer (Wanaparthy town). Cost: ₹80–120/meal × 3 meals × 30 people = ₹8–11L/yr. Deduct ₹30/meal from staff salary; net cost to company ₹3–5L/yr. Eliminates food management entirely — zero your time on this.
Plant Layout — 12 Acres, Kothakota (Phase 1A + Phase 2 Reserved)
PROCESS BUILDING
3,500 sqft · RCC frame
Leach reactors ×3
Precipitation tanks ×2
Draft-tube causticiser
CaO slaker
Filter presses ×2
Leach reactors ×3
Precipitation tanks ×2
Draft-tube causticiser
CaO slaker
Filter presses ×2
~0.5 acres footprint
SPRAY DRYER + MVR BLOCK
2,000 sqft · separate
Spray dryers ×2
MVR evaporator
Feed pumps
Bag filter / cyclone
Bagging station
Spray dryers ×2
MVR evaporator
Feed pumps
Bag filter / cyclone
Bagging station
~0.3 acres footprint
THU + FURNACE BLOCK
1,200 sqft · fire-rated RCC
Furnace (20 TPD rice husk)
THU oil heater
Flue gas cleaning
CO₂ roots blower
Ash collection + RHA store
Furnace (20 TPD rice husk)
THU oil heater
Flue gas cleaning
CO₂ roots blower
Ash collection + RHA store
~0.2 acres · fire setback
PRODUCT WAREHOUSE
6,000 sqft · PEB shed
PS bagged stock (25 kg)
PCC bagged stock
CO₂ cylinders (future)
QC hold area
Dispatch bay (2 trucks)
PS bagged stock (25 kg)
PCC bagged stock
CO₂ cylinders (future)
QC hold area
Dispatch bay (2 trucks)
~0.6 acres footprint
RAW MATERIAL STORE
RHA silo / shed: 300 MT
CaO covered shed: 200 MT
NaOH HDPE tank farm: 3×50KL
CTAB/stearic drum store
Hazmat bund + HDPE lining
CaO covered shed: 200 MT
NaOH HDPE tank farm: 3×50KL
CTAB/stearic drum store
Hazmat bund + HDPE lining
~0.4 acres · bunded
ETP / ZLD BLOCK
ZLD plant (25 KLD)
Effluent holding tank
Solar evap pond (0.25 ac)
Fish pond (0.5 ac, future)
ZLD salt cake store
TSPCB monitoring point
Effluent holding tank
Solar evap pond (0.25 ac)
Fish pond (0.5 ac, future)
ZLD salt cake store
TSPCB monitoring point
~1.0 acre total
UTILITIES + ADMIN
HT/LT panel room
DG set (200 kVA)
Solar inverter room
SCADA / control room
Admin + accounts office
QC lab (BET/PSD/XRF)
DG set (200 kVA)
Solar inverter room
SCADA / control room
Admin + accounts office
QC lab (BET/PSD/XRF)
~0.2 acres footprint
PHASE 2 RESERVED
~5 acres held vacant
Phase 2 production line
1 MW solar farm
CO₂ bottling plant
Silica gel side line
Staff expansion
Phase 2 production line
1 MW solar farm
CO₂ bottling plant
Silica gel side line
Staff expansion
~5 acres — do not build yet
Phase 1A built-up footprint: ~3 acres + 1 acre ETP + 1 acre roads/drainage/accommodation = ~3 acres active, 9 acres future. 1300 ft road frontage = ~3 truck bays + separate tanker entry + emergency exit simultaneously.
Plant Setup — Stage-by-Stage Roadmap (Month 0 = Financial Close)
M −6 to M0
Pre-close
Pre-close
Site acquisition + due diligence + company setup
Borewell test · Title search + Dharani · DISCOM 500 kW feasibility letter · Land registered · TSPCB CTE application filed · SPICe+ company incorporation · DPIIT recognition · Bank DPR submission · IEC registration · Hire plant manager (starts M−1)
Borewell test · Title search + Dharani · DISCOM 500 kW feasibility letter · Land registered · TSPCB CTE application filed · SPICe+ company incorporation · DPIIT recognition · Bank DPR submission · IEC registration · Hire plant manager (starts M−1)
M0–M1
Mobilise
Mobilise
Financial close + site handover + PMC appointed
Equity infusion + bank drawdown · PMC / project manager appointed · Site fencing + security + temporary power + site office cabin · Soil test + topographic survey · Groundwork for boundary wall · Commissioning consultant engaged (PDIL or private ChemE) · Long lead-time equipment purchase orders placed: spray dryers, MVR, furnace+THU
Equity infusion + bank drawdown · PMC / project manager appointed · Site fencing + security + temporary power + site office cabin · Soil test + topographic survey · Groundwork for boundary wall · Commissioning consultant engaged (PDIL or private ChemE) · Long lead-time equipment purchase orders placed: spray dryers, MVR, furnace+THU
M1–M3
Civil
Civil
Civil construction — all buildings simultaneously
Process building (RCC frame, 3,500 sqft) · Spray dryer + MVR block · THU furnace room (fire-rated RCC, isolated) · Product warehouse (PEB shed) · Raw material storage (bunded, HDPE-lined) · ETP/ZLD civil · Accommodation block (5 units, PM house, canteen) · Internal roads, drainage, hardstanding · DISCOM HT connection civil work · Borewells (2) + OHT + underground sump · Solar panel civil (foundations)
Process building (RCC frame, 3,500 sqft) · Spray dryer + MVR block · THU furnace room (fire-rated RCC, isolated) · Product warehouse (PEB shed) · Raw material storage (bunded, HDPE-lined) · ETP/ZLD civil · Accommodation block (5 units, PM house, canteen) · Internal roads, drainage, hardstanding · DISCOM HT connection civil work · Borewells (2) + OHT + underground sump · Solar panel civil (foundations)
M3–M6
Procurement
Procurement
Equipment delivery + erection begins (parallel with civil)
Medium lead equipment arrives: leach reactors, filter presses, causticiser, tanks, pumps · Process piping (HDPE/CPVC) prefabrication · Electrical cable tray + conduit laying · Instruments arrive (pH sensors, temperature, flow meters) · PLC panels (S7-1200) factory acceptance tested · Long lead equipment expected: spray dryers arrive M4, MVR M5 · NaOH HDPE tank farm installation · CaO covered shed completed
Medium lead equipment arrives: leach reactors, filter presses, causticiser, tanks, pumps · Process piping (HDPE/CPVC) prefabrication · Electrical cable tray + conduit laying · Instruments arrive (pH sensors, temperature, flow meters) · PLC panels (S7-1200) factory acceptance tested · Long lead equipment expected: spray dryers arrive M4, MVR M5 · NaOH HDPE tank farm installation · CaO covered shed completed
M5–M8
Erection
Erection
Equipment installation + mechanical completion
All process equipment set on foundations · Process piping welded and hydro-tested · Electrical cabling complete · PLC panel installed + wired · Instrument loop checks · THU oil (Therminol 55) filled and heated for first time · Spray dryer trial run (water only) · MVR commissioning · Solar array installation + DISCOM interconnection · DG set load tested · ETP/ZLD commissioning · CEMS installed on furnace stack · ZLD system water trial
All process equipment set on foundations · Process piping welded and hydro-tested · Electrical cabling complete · PLC panel installed + wired · Instrument loop checks · THU oil (Therminol 55) filled and heated for first time · Spray dryer trial run (water only) · MVR commissioning · Solar array installation + DISCOM interconnection · DG set load tested · ETP/ZLD commissioning · CEMS installed on furnace stack · ZLD system water trial
M8–M10
Pre-comm
Pre-comm
Pre-commissioning trials + regulatory clearances
TSPCB CEMS certification (mandatory before commercial ops) · CTE → CTO (Consent to Operate) application submitted · Fire NOC from District Fire Officer · Factory License application · Water trial: NaOH circuit (run water, check all leaks) · Chemical trial: dilute NaOH leach (no RHA — just prove circuit integrity) · pH calibration across all instruments · SCADA go-live: all sensors visible on HMI and mobile · FSSAI central licence application filed (start 12–18 month clock) · Customer engagement: first lab samples from trial batches sent to 3 SE Asia brokers and 2 Indian rubber compounders
TSPCB CEMS certification (mandatory before commercial ops) · CTE → CTO (Consent to Operate) application submitted · Fire NOC from District Fire Officer · Factory License application · Water trial: NaOH circuit (run water, check all leaks) · Chemical trial: dilute NaOH leach (no RHA — just prove circuit integrity) · pH calibration across all instruments · SCADA go-live: all sensors visible on HMI and mobile · FSSAI central licence application filed (start 12–18 month clock) · Customer engagement: first lab samples from trial batches sent to 3 SE Asia brokers and 2 Indian rubber compounders
M10–M12
Commissioning
Commissioning
Commercial commissioning — first real production batches
First rice husk combustion run · First RHA leach batch (measure extraction efficiency, record Na balance) · First PS precipitation batch (measure BET, PSD — should hit 140–165 m²/g standard grade) · First causticisation batch (measure NaOH recovery %, expect 78–82% initially) · First PCC characterisation (d50, brightness) · First spray dryer product (check moisture, particle size) · All results to CSIR-IICT for validation · Adjust process parameters with commissioning consultant · First commercial batch by end M12
First rice husk combustion run · First RHA leach batch (measure extraction efficiency, record Na balance) · First PS precipitation batch (measure BET, PSD — should hit 140–165 m²/g standard grade) · First causticisation batch (measure NaOH recovery %, expect 78–82% initially) · First PCC characterisation (d50, brightness) · First spray dryer product (check moisture, particle size) · All results to CSIR-IICT for validation · Adjust process parameters with commissioning consultant · First commercial batch by end M12
M12–M18
Ramp-up
Ramp-up
Commercial production ramp — 60% → 75% → stabilise
Month 12: First invoices, first export FCL to SE Asia broker (standard PS, ₹42/kg FOB) · Month 13–15: Optimise NaOH recovery (target: 82% → 85%) · Month 15: HDS qualification samples to Apollo/MRF/Ceat (start 3–6 month approval clock) · Month 16: TSPCB first annual inspection · Month 18: Phase 1B equipment installed from Y1 accruals (₹1.50 Cr) · Month 18: Load enhancement application to DISCOM (if solar expansion needed) · Month 18: First sealant PCC qualification samples to Pidilite/Sika
Month 12: First invoices, first export FCL to SE Asia broker (standard PS, ₹42/kg FOB) · Month 13–15: Optimise NaOH recovery (target: 82% → 85%) · Month 15: HDS qualification samples to Apollo/MRF/Ceat (start 3–6 month approval clock) · Month 16: TSPCB first annual inspection · Month 18: Phase 1B equipment installed from Y1 accruals (₹1.50 Cr) · Month 18: Load enhancement application to DISCOM (if solar expansion needed) · Month 18: First sealant PCC qualification samples to Pidilite/Sika
M18–M36
Optimise
Optimise
Stabilisation + grade upgrade + export scale-up
NaOH recovery pushed to 86–88% (draft-tube optimisation with CSIR-IICT) · HDS qualification approved: Apollo/MRF offtake begins (PS: ₹45–47/kg) · Phase 1B running at 75%: total RHA 19.6 MT/day · Sealant PCC to Pidilite/Sika pipeline · FSSAI E551 certification expected ~Month 28–30 · CO₂ bottling plant feasibility study (from Y2 accruals) · Phase 2 detailed engineering begins (self-funded) · Promoter fully in commercial mode: customer contracts, export, R&D direction
NaOH recovery pushed to 86–88% (draft-tube optimisation with CSIR-IICT) · HDS qualification approved: Apollo/MRF offtake begins (PS: ₹45–47/kg) · Phase 1B running at 75%: total RHA 19.6 MT/day · Sealant PCC to Pidilite/Sika pipeline · FSSAI E551 certification expected ~Month 28–30 · CO₂ bottling plant feasibility study (from Y2 accruals) · Phase 2 detailed engineering begins (self-funded) · Promoter fully in commercial mode: customer contracts, export, R&D direction
Promoter Role — What You Own vs What You Delegate
What You Must Own — Cannot Delegate
| Domain | Why you, not a professional |
|---|---|
| Customer relationships & ToA negotiation | Institutional buyers (Apollo, Pidilite, Asian Paints) sign with promoters, not plant managers. Your credibility and equity are the collateral. |
| Export — IEC, LC management, broker relationships | LC discounting and export credit are in your name. The bank relationship is yours. |
| Capital allocation decisions | Phase 1B timing, Phase 2 GO/NO-GO, which grade to invest in qualifying first — all strategic, yours. |
| IP protection | You own the process IP. NDAs are signed with you as counterparty. Patent filing (if any) = your name. |
| Banking & compliance signing authority | Bank covenants, ROC filings, TSPCB annual returns — director signature. Cannot delegate legally. |
| R&D direction | Which grade to pursue next, which customer spec to chase, when to file FSSAI — strategic calls that set the revenue curve for the next 3 years. |
What You Delegate — Never Touch Operationally
| Domain | Who owns it | Your oversight tool |
|---|---|---|
| Day-to-day plant operations | Plant Manager | 6 AM daily report + SCADA phone |
| Process parameter tuning | PM + commissioning consultant | Monthly batch record review |
| Equipment maintenance | Maintenance tech + AMC | Monthly uptime % KPI |
| ETP/ZLD compliance | Thermax AMC + Plant Manager | TSPCB inspection report |
| QC testing and COA | QC tech + NABL external lab | Weekly COA summary |
| Labour management | Plant Manager | Headcount + attendance in ERP |
| Raw material local logistics | PM + procurement admin | Inventory levels on dashboard |
| TSPCB day-to-day submissions | Plant Manager + consultant | Annual summary review |
You do NOT need to know: how to operate a spray dryer, NaOH titration procedures, PLC programming, TSPCB form numbers.
You DO need to understand: BET/CTAB (what they mean for price, not how to measure), NaOH recovery% (what it does to OPEX), utilisation% (what it does to EBITDA), export spec requirements (what buyers need, not how to test). The knowledge gap in wet chemistry is not a blocker — it is exactly what the plant manager + CSIR-IICT are hired to fill.
You DO need to understand: BET/CTAB (what they mean for price, not how to measure), NaOH recovery% (what it does to OPEX), utilisation% (what it does to EBITDA), export spec requirements (what buyers need, not how to test). The knowledge gap in wet chemistry is not a blocker — it is exactly what the plant manager + CSIR-IICT are hired to fill.
SLA Enforcement — How to Make Professionals Accountable
Plant Manager KPIs (Performance-Linked Bonus)
| KPI | Target | Weight |
|---|---|---|
| Utilisation % vs plan | ≥ plan ±5% | 30% |
| NaOH recovery % | ≥82% Y1, ≥85% Y2 | 25% |
| Plant uptime (excl planned) | ≥96% | 20% |
| TSPCB compliance (zero notices) | Zero violations | 15% |
| Daily reports filed on time | ≥95% of days | 10% |
Annual bonus: 15% of CTC if all KPIs met. 0% if critical KPI (uptime or compliance) missed. Paid quarterly to maintain motivation.
AMC Contractor SLAs (Liquidated Damages)
| System | Uptime SLA | LD clause |
|---|---|---|
| ETP / ZLD | 98% | ₹5,000/hr downtime beyond 48hr |
| THU system | 99% | ₹8,000/hr production loss |
| Spray dryers | 97% | ₹5,000/hr per unit |
| MVR evaporator | 98% | ₹8,000/hr (plant stopper) |
LD clause language: "Contractor shall pay ₹X for each hour of unplanned downtime exceeding 8 hr in any calendar month, capped at 10% of annual AMC value." Have contract reviewed by industrial lawyer before signing.
Institutional Partner Accountability
| Partner | Deliverable | Trigger payment |
|---|---|---|
| CSIR-IICT | NaOH recovery improvement roadmap | Per milestone, not retainer |
| Commissioning consultant | Commissioning sign-off report | 30% mobilisation, 70% on CTO |
| IIT-H advisory | Process optimisation report (quarterly) | Quarterly deliverable-based |
| NABL lab | COA with accreditation stamp | Per test batch |
Key principle: never pay retainers without deliverables. Every payment must trigger a document, report, or measurable outcome.
TPC (DPR v16)
₹19.13 Cr
Pending vendor RFQs ±10%
Target debt
₹12.43 Cr
65% of TPC, 7-yr tenure
CGSS cover (80%)
₹9.94 Cr
Guaranteed by NCGTC
Uncovered (20%)
₹2.49 Cr
Land (₹7 Cr) covers 2.8×
Personal exposure
Minimal
Land pledge replaces personal guarantee
Target moratorium
18 months
SIDBI SMILE allows up to 36M
Optimal Financing Stack — Recommended Tranche Structure
| Tranche | Source | Amount | Rate | Moratorium | Guarantee | Priority |
|---|---|---|---|---|---|---|
| A — Core term loan | SIDBI SMILE + CGSS guarantee | ₹8–9 Cr | 9–9.5% | 18 months (stated policy) | CGSS 80% = NCGTC covers ₹6.4–7.2 Cr | FILE FIRST |
| B — Green assets tranche | SIDBI 4E / IREDA biomass | ₹2–3 Cr | 7.5–8.5% | 12–18 months | Asset (THU, solar, ETP, MVR) | FILE PARALLEL |
| C — TDB technology loan | Technology Development Board (DST) | ₹2–3 Cr | 5% | 24 months | Process IP + CSIR-IICT letter | FILE PARALLEL |
| D — Working capital CC | Same bank as Tranche A | ₹3 Cr | 9.5–10% | None (revolving) | Stock + book debts | AT COMMISSIONING |
| E — Export packing credit | Same bank (IES subvention) | ₹1–2 Cr | 5–7% | None (per order) | LC / confirmed export order | MONTH 12+ |
| If A+B+C all sanctioned | Blended rate | ₹12–15 Cr | ~7.5–8.2% | 18–24 months | Minimal personal exposure | |
| DPR v16 base (SIDBI alone) | ₹12.43 Cr | 10.5% | 12 months | CGSS only |
TDB at 5% on ₹2–3 Cr saves ₹0.11–0.16 Cr/yr in interest vs 10.5%. Over 7 years = ₹0.77–1.12 Cr saved. Worth the 6–9 month application delay if you start now. File with CSIR-IICT collaboration letter as the anchor document.
Scheme-by-Scheme Guide — Active as of 2026
| Scheme | Who | Rate | Max | Key condition | Status |
|---|---|---|---|---|---|
| ▶ GUARANTEE SCHEMES — reduce bank risk, unlock better terms | |||||
| CGSS (Credit Guarantee Scheme for Startups) | NCGTC / DPIIT | 0.5% fee/yr | ₹10 Cr | DPIIT recognition ✓ already done | ACTIVE |
| CGTMSE 2.0 (Micro & Small) | CGTMSE | 0.75–1.25% | ₹5 Cr | Udyam MSME registration | ACTIVE |
| ▶ SIDBI SCHEMES — primary lender for this project | |||||
| SIDBI SMILE (Make in India Enterprises) | SIDBI | 9–9.5% | ₹25 Cr | Manufacturing, MSME; moratorium up to 36M | ACTIVE |
| SIDBI 4E (Energy Efficiency / Environment) | SIDBI | 7.5–8.5% | ₹10 Cr | Green assets: solar, ETP, biomass energy | ACTIVE |
| SIDBI SPEED+ (Startup) | SIDBI | 9% | ₹10 Cr | DPIIT recognition; fast-track 30-day decision | ACTIVE |
| ▶ SPECIALISED LENDERS | |||||
| TDB Loan (Technology Development Board) | DST, Govt India | 5% | 50% of project cost | Technology development + CSIR/IIT partner; slow (6–9M) | ACTIVE |
| IREDA Biomass | IREDA | 8.5–9% | ₹3–5 Cr | Biomass combustion + energy efficiency components | ACTIVE |
| NABARD Agro-Processing | NABARD RIDF | 8–9% | ₹30 Cr | Agricultural waste valorization; rural location ✓ | ACTIVE |
| ▶ WORKING CAPITAL & EXPORT FINANCE | |||||
| Interest Equalisation Scheme (IES) | RBI / all banks | −2 to −3% | No limit | Pre+post shipment export credit; 2-3% below normal | ACTIVE |
| ECGC Export Credit Insurance | ECGC | 0.5–1% premium | 90% cover | Insures against SE Asia buyer default; essential for new exporters | ACTIVE |
| EXIM Bank MSME Export Credit | EXIM Bank | 8–9% | ₹5 Cr | First-time exporters; market entry support | ACTIVE |
| ▶ INCENTIVES & SUBSIDIES (cash-back / tax) | |||||
| 80-IAC Tax Holiday | Income Tax Act | 100% exemption | 3 yrs of 10 | DPIIT recognition ✓; file after first ITR | ACTIVE |
| RoDTEP (Remission of duties on exports) | DGFT | 0.5–1.5% | of FOB | All exported products; claim per shipment | ACTIVE |
| MeitY ECMS (Electronics Component Mfg) | MeitY | 25% subsidy | ₹50L | SCADA, PLC, instrumentation BOM eligible | VERIFY |
| SISFS (Seed Fund for Startups) | DPIIT | — | — | Currently closed / paused | CLOSED |
18-Month Moratorium — Negotiation Script
Standard bank moratorium is 12 months. 18 months requires justification. Here is the documented argument:
| Argument | Evidence |
|---|---|
| Construction period = 12 months | Civil + equipment + E&I = 12 months (PMC schedule) |
| Commissioning stabilization = 6 months | Wet chemistry plants need 3–6M to achieve stable recovery %. First revenue Month 12. Stable revenue Month 18. |
| SIDBI SMILE allows 36M | Scheme document explicitly allows up to 36-month moratorium for complex manufacturing |
| CGSS-backed = bank risk is minimal | Bank holds NCGTC guarantee — 80% risk transferred. They can afford to be flexible on moratorium. |
| Interest-during-moratorium offered | Propose: pay interest monthly during moratorium (bank still earns ₹9–9.5%). Only defer principal. |
| Export revenue from Month 12 | Provide customer pipeline evidence: SE Asia broker MOU, sample orders |
Fallback position: If bank insists on 12M moratorium, negotiate a "step-up repayment" — 50% of EMI in Y2, 100% from Y3. Same economic effect as 18M moratorium on cash flow, but framed differently for the bank.
Carbon / BCR Credits — Register Before Commissioning
| Credit type | Mechanism | Potential ₹/yr | Register timing |
|---|---|---|---|
| PCC carbon fixation | CO₂ permanently mineralised as CaCO₃ · 3,089 MT/yr fixed | ₹38–65L/yr | BEFORE commissioning (baseline docs required) |
| Rice husk biochar / RHA | Puro.earth CORC methodology · biogenic carbon in ash | ₹15–30L/yr | Before commissioning |
| JCREDITS (Japan BCM) | Japan bilateral credit · JETRO facilitates | ₹20–40L/yr | Apply via JETRO India post-commissioning |
| Domestic BIS carbon credit | India Carbon Market (ICM) · BIS scheme 2026 | ₹10–25L/yr | Watch for launch; register early |
| Total BCR upside (Year 2+) | ₹83–160L/yr | Not in base EBITDA — pure upside |
Action before Month 0: Contact Puro.earth (puro.earth) and file baseline documentation for PCC carbon fixation methodology. This is a time-sensitive step — you cannot claim credits retroactively if you didn't document the baseline. One email to Puro.earth's project team costs nothing and could unlock ₹50+ Cr over 10 years.
Personal Exposure Map — How to Stay Protected
| Item | Exposure type | Mitigation | Residual personal risk |
|---|---|---|---|
| Term loan ₹12.43 Cr (CGSS-backed) | Director guarantee (standard) | CGSS covers 80% = ₹9.94 Cr covered by NCGTC. Land pledge (₹3.60 Cr, project site) covers uncovered 20% = ₹2.49 Cr. | Minimal — land only, not personal assets |
| Additional land collateral pledge | Property mortgage | Pledge project land first (₹3.60 Cr). Use additional family land (balance up to ₹7 Cr) only if bank insists beyond CGSS cover. | Land, not liquid assets |
| WC facility ₹3 Cr | Hypothecation of stock + debtors | Asset-backed (stock = self-liquidating if business stops). Personal guarantee: negotiate to limit to 1× WC limit only. | ₹3 Cr hypothecation; minimal cash call risk |
| Export packing credit | LC / export order backed | Secured by confirmed LC from buyer — bank has first claim on export receivable. | Nil if LC from reputable bank |
| TDB loan (if sanctioned) | Technology IP + process documentation | TDB's security is typically process IP + company assets. Personal guarantee negotiable for DPIIT startups. | Minimal — IP is the collateral |
Key principle: With CGSS backing, the bank's credit exposure is only 20% of the loan (₹2.49 Cr). On ₹7 Cr of land collateral, you have 2.8× over-collateralisation on that 20%. This means you can negotiate: (1) no personal guarantee on the term loan, (2) limit personal guarantee on WC to 1× WC limit only, (3) remove any cross-collateralisation clause. A good CA / project finance lawyer makes this argument during sanction.
Application Sequencing — What to File and When
| Step | Action | Timeline | Dependency |
|---|---|---|---|
| 1 | Udyam MSME registration (udyamregistration.gov.in) | Now — 30 minutes | None — just PAN + Aadhaar |
| 2 | Contact Puro.earth — baseline documentation for PCC CO₂ fixation | This week | None — just send project description email |
| 3 | CSIR-IICT MOU signing — needed for TDB and institutional credibility | Month −3 | Company incorporated (CIN done ✓) |
| 4 | SIDBI application (SMILE + 4E) + CGSS guarantee application | Month −3 to −2 | DPR v16, CMA data, Udyam, DPIIT cert, land docs |
| 5 | TDB loan application (dbt.gov.in/tdb) | Month −3 to −2 | CSIR-IICT MOU, DPIIT cert, DPR, incorporation |
| 6 | 80-IAC tax exemption application (startupindia.gov.in) | After first ITR (Y1 end) | DPIIT cert ✓; file with first ITR |
| 7 | ECGC export credit insurance registration | Month 10 (before first export) | IEC registration ✓ |
| 8 | Interest Equalisation Scheme — activate at bank | Month 12 (first export order) | Export order / LC in hand |
| 9 | RoDTEP — register on DGFT portal | Month 12 | IEC + first shipping bill |
| 10 | JCREDITS application via JETRO India | Month 18 (post-commissioning) | 6 months production data |