Fluxara — Roadmap, Financials & Sales Strategy

Land + Company Ready → First Commercial Production (~12 months)

NOW
Month 0

REGULATORYFINANCE

File TSPCB CTE immediately — 6–9 month wait, longest lead item
Appoint PMC (Project Management Consultant)
Bank submission — ₹20.12 Cr term loan @ 10.5% (CGSS route)
Financial close target

Month 1

CUSTOMERSENGINEERING

Start HDS tyre customer engagement — Apollo, MRF, Ceat, JK Tyre
Start PCC coatings engagement — Asian Paints, Berger, Nerolac
Engineering freeze + equipment BOM lock

Month 1–2

THUENGINEERING

THU (Thermal Heating Unit, oil-based) spec & vendor lock — Thermax / Thermodyne
No IBR regulatory path — saves 8–10 weeks on critical path vs steam boiler
CEMS specification locked (TSPCB CTO prerequisite)
Finalize EPC contractor or PMC + OEM direct sourcing

Month 2–4

LAB VALIDATION

SiO₂ extraction @ 88% — validate before engineering freeze
NaOH recovery via causticisation @ 82% — highest priority trial
Every 1% NaOH recovery improvement = ₹0.47 Cr/yr saved

Month 3–8

CIVILPROCUREMENT

Civil construction — furnace/THU building = fire-rated RCC (NOT PEB)
Major equipment POs: Furnace 20 TPD + THU (oil circuit), spray dryers ×2, leach reactors ×3
Triple-effect evaporator + MVR — mandatory Day 1 (without it: 25.6 GJ/day deficit, plant cannot run)
ETP + ZLD 25 KLD · E&I · CEMS installation

Month 8–10

INSTALLATION

Equipment installation + mechanical completion
THU oil system commissioning + leak test (Therminol 55 / Dowtherm A circuit)
TSPCB CTO inspection (targeting ~Month 8 of 6–9 month CTE process)

Month 10

FSSAI

FSSAI central licence application filed (12–18 month approval cycle → Y3 dental/food revenue)

Month 11

SAMPLES

Trial samples dispatched to HDS tyre + PCC coatings + dental customers
QC lab (BET + PSD + XRF) calibrated and fully operational

Month 12 ★

COMMERCIAL PRODUCTION BEGINS

60% utilisation · standard PS ₹26/kg + bulk PCC ₹8–15/kg + residue ₹900/MT
Debt moratorium active — interest only ₹2.11 Cr/yr (no principal)
Promoter bridges ₹1.55 Cr WC gap through Y1

Month 18

PHASE 1B ONLINE

Phase 1B from Y1 accruals — ₹1.50 Cr · extra RHA +4.568 MT/day
HDS qualified by now — price jumps ₹26 → ₹45–50/kg domestic · ₹72–84/kg FOB
Export via Chennai/Krishnapatnam port — 5–6 FCL containers/month
Revenue jumps to ₹30.81 Cr/yr — DSCR 3.46×

Post-Commissioning — First 6 Months (Year 1 · 60% Utilisation · Moratorium)

Revenue (6 months)

₹6.97 Cr

₹13.94 Cr annualised · standard PS + bulk PCC + residue

OPEX (6 months)

₹6.69 Cr

NaOH #1 (27.7%) · CaO #2 · Rice husk #3

EBITDA (6 months)

₹0.28 Cr

4% margin — Y1 is market-building, not a profit year

Interest — moratorium (6 months)

₹1.06 Cr

No principal during moratorium · continues @ 10.5%

Net Cash After Interest (6 months)

−₹0.78 Cr

Promoter must pre-arrange ₹1.55 Cr bridging WC for full Y1. DSCR = 0.27× (expected — moratorium covers this with the bank).

Cash Flow Waterfall — First 6 Months

Revenue

+₹6.97 Cr

Variable OPEX

−₹4.87 Cr

Fixed OPEX

−₹1.86 Cr

EBITDA

+₹0.28 Cr

Interest (moratorium)

−₹1.06 Cr

Net Cash

−₹0.78 Cr

What You're Selling in the First 6 Months

Precipitated Silica

~1,302 MT

₹26/kg domestic

Standard grade — HDS not yet qualified

Nano-PCC Bulk

~2,007 MT

₹8–15/kg coatings

Obligatory co-product — paints, coatings, fillers

Desilicated Residue

~473 MT

₹900/MT brick kilns

Sold to local brick kiln operators

Why Y1 is tight but planned: You're selling standard PS at ₹26/kg while HDS (₹45–50/kg) is still in customer qualification. The jump comes at Y2 when HDS unlocks and Phase 1B adds 30% volume — DSCR moves to 3.46×. Promoter bridges ₹1.55 Cr. Bank knows this; the moratorium is designed for exactly this ramp.

Customer Qualification Pipeline — Engage Month 1, Revenue by Phase

HDS Precipitated Silica

₹45–50/kg domestic · ₹72–84/kg FOB export

Month 1

Cold Outreach

Share product specs + BET/CTAB data sheet. Request NDA + sample request from tyre R&D labs.

Month 11

Trial Samples Dispatched

5–10 kg samples after mechanical completion. Target CTAB ≥175 mg/g, CIPD ≥80%.

Month 12–15

Customer Lab Testing

Tyre lab runs compound trials — DIN abrasion, rolling resistance, wet grip. 3–4 months at most OEMs.

Month 15–18

Approved Vendor Listing

First commercial PO expected. Coincides with Phase 1B scale-up giving sufficient volume.

Month 18+ Y2

HDS Revenue Begins

Y2 revenue ₹30.81 Cr/yr. HDS replaces standard PS in mix. DSCR 3.46×.

Target Companies

Apollo Tyres

Hyderabad plant

Closest — lead prospect

MRF

Hyderabad + Chennai

Largest domestic buyer

Ceat

Nashik / Halol

Green tyre push underway

JK Tyre

Mysore / Kankroli

Expanding capacity rapidly

Balkrishna Ind.

Bhuj / Aurangabad

Off-highway + agri tyres

Export OEMs

Chennai port FOB

Via mineral trading house

Nano-PCC — 3 Grade Tracks

₹8–15 bulk → ₹26 sealant → ₹42 plastics

Month 1

Coatings Track — Engage Now

Fastest qualification (2–3 months). PCC as TiO₂ extender in paints + distemper. Revenue Day 1.

Month 12–14

Coatings Revenue — Day 1

₹8–15/kg · ~2,000 MT/6M · first cash-generating PCC product. Bulk uncoated.

Month 14–18

Sealant Track

Pidilite, Sika, Dow Corning India. Stearic acid coated, 0.7 µm d50. 4–6 month qualification.

Month 18+ Y2

Sealant Revenue

₹26/kg — 3× uplift vs bulk coatings. Coincides with Phase 1B volume.

Y3+

Plastics Track (OCC coated)

PP/PE compounders. ₹42/kg · 0.5 µm d50 · longest qualification. SABIC, RIL affiliates.

Target Companies

Asian Paints

Hyderabad / Mumbai

Bulk coatings — Month 1 target

Berger Paints

Howrah / Noida

Coatings bulk track

Pidilite

Mumbai

Sealant PCC — Fevicol + Dr Fixit

Sika India

Pune

Sealant + construction chemicals

Nerolac

Mumbai

Kansai Nerolac coatings bulk

Export Traders

Chennai / JNPT

Spot export via mineral traders Y2

Dental / Food Grade PS (FSSAI E551) — Long Track · Highest Margin

₹90–95/kg domestic · ₹144–152/kg FOB export

Month 10

FSSAI Application Filed

Central licence for E551. 12–18 month approval cycle. File at Month 10 so approval lands ~Y3.

Month 11

Dental Trial Samples

Pb ≤1 ppm, D50 ≤12 µm. Send to Colgate, HUL labs in parallel while FSSAI is pending.

Y2–Y3

Customer Qualification

Toothpaste OEMs run 6–12M internal testing parallel to FSSAI. Pre-qualify so POs are ready when FSSAI lands.

Y3 ★

Dental Revenue Unlocks

₹90–95/kg — highest domestic price. If delayed to Y5, EBITDA drops ₹8.90 Cr in Y3 — still bankable at 5.49× DSCR.

Target Companies

Colgate India

Mumbai

Largest toothpaste buyer — lead

HUL (Pepsodent)

Nationwide

Parallel FSSAI qualification

Dabur Red

Ghaziabad

Herbal toothpaste range

Export Pharma

EU / Japan FOB

₹144–152/kg FOB after FSSAI

Don't wait for FSSAI to engage dental customers. Run customer qualification in parallel. The moment FSSAI lands, you need POs ready — not a 6-month gap after approval.

Product Sales Strategy — Year by Year

YEAR 1

₹13.94 Cr

60% utilisation · moratorium active · market-building year

Precipitated Silica

Standard Grade

₹26/kg domestic

~2,603 MT/yr · 100% of PS output

Rubber compounders, animal feed, generic industrial

Nano-PCC

Bulk Coatings Grade

₹8–15/kg domestic

~4,014 MT/yr · obligatory co-product

Paints, distemper, construction fillers, paper

By-product

Desilicated Residue

₹900/MT

~945 MT/yr to brick kilns

Local brick kiln operators near Sangareddy

Y1 Strategy — Volume over margin: Sell every MT of standard PS and bulk PCC to build cash flow and fund working capital. HDS qualification is ongoing in parallel with tyre OEM labs. Do not wait for HDS approval — sell standard grade from Day 1. Domestic only; no export logistics complexity yet. Every rupee of EBITDA in Y1 goes toward the ₹1.55 Cr bridging WC need and Phase 1B accrual.

YEAR 2

₹30.81 Cr

75% utilisation · HDS qualified · Phase 1B online · export begins · DSCR 3.46×

PS — Upgraded Mix

60% HDS · 40% Standard

₹45–50/kg dom · ₹72–84/kg FOB

5,658 MT/yr (Phase 1B) — HDS is 3× standard price

Apollo/MRF/Ceat domestic + spot export via port

Nano-PCC — Upgraded

Coatings + Sealant Mix

₹15–26/kg

8,723 MT/yr (Phase 1B) · push sealant fraction

Stearic coated for Pidilite / Sika — 3× bulk price

Export Channel

FCL Containers

5–6 containers/month

Chennai / Krishnapatnam · 300–380 km

HDS PS FOB + sealant PCC FOB — Ph1B volume enables this

Y2 Strategy — Margin over volume: Shift every tonne from standard PS (₹26/kg) to HDS (₹45–50/kg). That single grade switch more than doubles PS revenue per tonne. Phase 1B adds 30% more volume. First export containers leave at Month 18. Sealant PCC at ₹26/kg starts replacing bulk coatings PCC at ₹8–15/kg. Target: sell zero standard-grade PS by Month 24. First comfortable DSCR year — debt service fully covered.

YEAR 3+

₹51.12 Cr → ₹61.75 Cr

90–100% utilisation · FSSAI certified · full premium mix · DSCR 7.57–9.64×

PS — Full Premium

Dental + HDS + Export

₹90–95/kg dom · ₹144–152/kg FOB

Dental grade ~15% of PS mix (FSSAI certified Y3)

Colgate, HUL, Dabur + export pharma

Nano-PCC — Full Premium Mix

Sealant + Plastics + Coatings

₹26–42/kg

8,723 MT/yr · shift to plastics grade (₹42/kg)

PP/PE compounders — SABIC, RIL affiliates

Upside Streams

BCR Credits + Electricity

+₹1.27 Cr/yr upside

CO₂ surplus 15.69 MT/day → Puro.earth CORCs

Not in base model — upside if BCR framework matures

Y3+ Strategy — Premium product completion: Dental/food PS is the highest-value product — every tonne shifted from HDS (₹45–50/kg) to dental (₹90–95/kg) doubles that tonne's revenue. PCC plastics grade at ₹42/kg is the equivalent unlock for PCC. Export becomes a margin tool: dental PS at ₹144–152/kg FOB vs ₹90–95/kg domestic. Full Phase 2 self-funded from Y2–Y3 accruals on the 74 GJ/day thermal surplus. Zero additional bank debt needed.

Priority Actions — You Have Land + Company. Do This Now.

File TSPCB CTE — This Week

Longest regulatory lead: 6–9 months. Every week of delay pushes commissioning directly. Documents needed: site plan, process flow, ETP design, biomass source declaration. Fee ~₹50K–2L based on project cost.

DO NOW

Submit Bank Loan Package — ₹20.12 Cr @ 10.5%

DPR v15 + CMA data + promoter KYC + land docs → SBI/Canara via CGSS route. Highlight DSCR 3.46× in Y2, moratorium gap covered by bridging WC. Financial close = the project clock starts.

DO NOW

Appoint PMC — Chemical Plant Experience

Must own TSPCB liaison, civil contractor management, vendor follow-up, THU oil system commissioning. Silica/PCC or inorganic chemicals background preferred.

DO NOW

Customer Engagement — Month 1 is Non-Negotiable

HDS tyre OEM qualification is 6–12 months of customer testing. Starting Month 1 → HDS approved by Month 18. Starting Month 12 → HDS by Month 24 = Y3, losing ₹16+ Cr in Y2 revenue. Engage before the plant exists — share specs, not products.

MONTH 1

Contract Lab Validation — SiO₂ 88% + NaOH 82%

Both numbers underpin the entire financial model. NaOH is 27.7% of OPEX — every 1% recovery miss = ₹0.47 Cr/yr permanently lost. Use CSIR-IICT Hyderabad or a private chemical lab. Must complete before engineering freeze or you build to the wrong spec.

MONTH 2

Engineering Freeze + THU Specification Lock

THU (Thermal Heating Unit, oil-based) with Therminol 55 / Dowtherm A circuit — Thermax / Thermodyne as vendors. Long-lead items: Triple-effect evaporator + MVR (14–18 week delivery). MVR mandatory from Day 1 — without it, 25.6 GJ/day deficit, plant cannot operate at design throughput.

MONTH 1–2

Lock RHA Supply Agreements — 11.43 MT/day

₹750/MT, minimum 90% SiO₂ contract clause mandatory. 2–3 rice mill aggregators in Sangareddy / Krishna / Nalgonda districts. Rice husk 20 MT/day from FCI/mills within 50 km radius.

MONTH 2–3

Arrange Promoter Bridging WC — ₹1.55 Cr

Y1 post-commissioning will be cash-negative ~₹1.55 Cr (DSCR 0.27×, interest-only moratorium). Arrange this before commissioning — not after the first monthly shortfall surprises you.

ARRANGE NOW

Single biggest risk: Treating Y1 as a "wait and see" year for customer engagement. HDS and sealant PCC qualification require months of testing inside customer labs. That clock only starts when you send specs and samples — and you can share specs before the plant runs. Y2 revenue is almost entirely determined by decisions made in Month 1–3.