Y1 OPEX Optimisation · Revenue Diversification · EBITDA-Positive Playbook
DPR v15 · Sept 2026
Biggest Y1 discovery: DPR v15 OPEX of ₹13.38 Cr at 60% includes CTAB (₹1.03 Cr) and stearic acid (₹0.38 Cr) — but Y1 makes only standard PS and bulk PCC, neither of which needs these inputs. Correcting this one product-mix fact drops Y1 OPEX by ₹1.42 Cr before any other optimisation. EBITDA jumps from ₹0.56 Cr → ₹2.0 Cr immediately.
Y1 OPEX Line-by-Line — DPR v15 Base vs Optimised (60% Utilisation, ₹ Cr/yr)
Cost Item Unit Price Daily Volume DPR v15 Y1 Optimised Y1 Saving
VARIABLE COSTS (scale with utilisation)
NaOH 48% lye #1 cost · 27.7%
Current: ₹18,240/MT lye from open market. Optimise: 3-year supply contract with Grasim Industries (Renukoot) or GHCL — negotiate ₹17,500/MT lye. Ensure 82%+ causticisation recovery — every 1% improvement = ₹0.47 Cr/yr saved. Consider draft-tube causticiser upgrade (DPR v16 item) to push recovery to 86–88%.
 ₹18,240/MT 5.48 MT/day ₹3.29 Cr ₹3.16 Cr ₹0.13 Cr
Rice husk
Current: ₹5,500/MT assumed. Optimise: Direct contracts with 3–4 rice mills within 50 km of Sangareddy (Medak, Nizamabad districts). Seasonal bulk purchase Oct–Dec (harvest peak) at ₹4,500–5,000/MT. FCI surplus RH often available at ₹4,800/MT. Own truck for collection (₹15–18L capex) saves ₹12–15L/yr in transport.
 ₹5,500/MT 12 MT/day ₹2.18 Cr ₹1.98 Cr ₹0.20 Cr
CaO quicklime
Current: Piduguralla, AP (~150 km) at ₹6,000/MT. Optimise: Nalgonda district limestone quarries are ~80–100 km from Sangareddy — ₹5,200/MT achievable. Bulk purchase with covered storage (monsoon protection). Mandatory XRF verify ≥85% purity on each delivery — reject substandard loads. Slake on-site always (never buy pre-slaked).
 ₹6,000/MT 8.02 MT/day ₹1.59 Cr ₹1.38 Cr ₹0.21 Cr
CTAB surfactant ZERO in Y1
Y1 reality: CTAB is only needed for HDS surface treatment (CTAB ≥175 mg/g, CIPD ≥80%). Y1 makes standard PS only — zero CTAB required for production. Keep only ₹5–8L for trial sample batches and customer development. DPR v15 incorrectly includes full CTAB at 60% in Y1 OPEX.
 ₹1,80,000/MT 0.173 MT/day ₹1.03 Cr ₹0.06 Cr ₹0.97 Cr
Stearic acid ZERO in Y1
Y1 reality: Stearic acid coating is only for sealant-grade PCC (₹26/kg, 0.7 µm d50). Y1 sells bulk coatings-grade PCC only — zero stearic needed for production. Keep ₹2–3L for R&D trial batches. Same accounting error as CTAB — included in DPR v15 Y1 OPEX but product doesn't require it.
 ₹1,20,000/MT 0.097 MT/day ₹0.38 Cr ₹0.03 Cr ₹0.35 Cr
Purchased RHA
₹750/MT contract price with ≥90% SiO₂ clause. Lock 2–3 suppliers across Medak/Nalgonda. Bonus RHA (3.6 MT/day) from combustion is zero-cost — this purchased RHA is incremental. Negotiate for 12-month forward pricing to avoid seasonal spikes.
 ₹750/MT 6.86 MT/day ₹0.17 Cr ₹0.17 Cr ₹0.00 Cr
Packing + transport
Optimise: Buy HDPE bags in bulk (5,000+ units/order) directly from Hyderabad bag manufacturers at ₹18–22/bag vs ₹28–35 retail. Own 1 truck (5 MT) for local delivery within 100 km radius — saves ₹12–18L/yr vs hired transport at ₹30–40/km. TSIIC industrial park: some customers may arrange self-collection (ex-works pricing).
 Blended — ₹0.72 Cr ₹0.66 Cr ₹0.06 Cr
Electricity (variable load)
Operating load 454 kW. Run energy-intensive processes (MVR compressor, spray dryers) on night shift (11 pm – 6 am) to benefit from TSERC off-peak ToD tariff discount (~₹0.80–1.20/unit reduction). Schedule high-load equipment to avoid MD (Maximum Demand) penalty spikes. Target contracted MD = 560 kVA, not 700 kVA.
 ₹7/kWh 454 kW load ₹0.29 Cr ₹0.26 Cr ₹0.03 Cr
FIXED COSTS (do not scale with utilisation)
Electricity (base grid, net solar)
Current: 250 kWp solar (₹0.22 Cr/yr offset). Optimise: Expand to 500 kWp at ₹12,000/kWp = ₹30L additional capex (payback 16 months). Sangareddy receives 5.5–6.0 kWh/m²/day — strong solar resource. Apply to TSREDCO for 40% capital subsidy on solar (eligible under PM-KUSUM or MSME solar scheme). Apply for TSERC open-access licence for net metering at this scale.
 ₹7/kWh net 2.13M kWh/yr ₹1.00 Cr ₹0.78 Cr ₹0.22 Cr
Labour (25 staff)
Current assumption: Avg ₹4.8L CTC/yr blended. Suburban reality: Process operators from local ITI (Sangareddy / Medak district) at ₹1.5–2.0L/yr CTC — not ₹3–4L city rates. Helpers at ₹12,000–15,000/month. Only Plant Manager (₹9–12L), Process Engineers ×2 (₹6–8L each), QC Head (₹6–7L) need market rates. Optimised blended: ₹4.1L CTC. Engage ITI Sangareddy for apprenticeship pipeline — stipend-funded for first 6 months.
 ₹4.8L avg CTC 25 staff ₹1.20 Cr ₹1.03 Cr ₹0.17 Cr
Maintenance (2% of fixed assets)
New plant in Y1 — actual maintenance typically <1% in first 2 years (warranty periods active on major equipment). Leverage Thermax / spray dryer OEM AMC (Annual Maintenance Contracts) for Year 1 at OEM-subsidised rates. Local fabrication shops at Patancheru MIDC (~40 km) for minor fabrication. Negotiate AMC for THU oil system separately (critical item).
 2% assets — ₹0.65 Cr ₹0.52 Cr ₹0.13 Cr
Admin + insurance + other
Insurance: New India Assurance / Oriental Insurance — plant on TSIIC land qualifies for standard industrial rates. MSME Udyam registration may provide 5–10% group insurance discount. Admin: Use Tally + GST cloud software (₹15K/yr) vs CA software. Hyderabad CA firms for compliance at ₹8–12L/yr vs ₹15–18L for big-city firms. Other: ZLD O&M is the variable here — optimize ZLD chemical dosing by in-house testing.
 Blended — ₹0.87 Cr ₹0.78 Cr ₹0.09 Cr
TOTAL Y1 OPEX ₹13.38 Cr ₹10.84 Cr ₹2.54 Cr saved
Note on CTAB + stearic (₹1.32 Cr saved together): These will return in Y2 when HDS and sealant PCC are in production. The saving is Y1-specific only — do not remove them from Y2+ OPEX projections. Use this window to build cash reserves for Phase 1B and Y2 CTAB buffer (4-week mandatory stock = ₹1.44 Cr tied up in inventory).
New Revenue Streams — Monetisable from Day 1 of Production (Month 12)
Base Y1 Revenue
₹13.94 Cr
Standard PS + bulk PCC + residue
Diversification Uplift
+₹1.98 Cr
5 new streams
Optimised Y1 Revenue
₹15.92 Cr
All streams activated
EBITDA Impact
+₹4.48 Cr
Revenue up + OPEX down combined
Pharma Excipient Grade PS
CONFIRMED — No extra licence needed
+₹0.60 Cr/yr
500 MT × ₹12/kg premium
Standard PS (₹26/kg) can be sold as pharmaceutical excipient (anti-caking agent, tablet coating, carrier, desiccant) at ₹38–42/kg — without FSSAI food licence. This is not food-contact use; it's solid dosage form manufacture under Drug Rules. The spec is simpler: whiteness ≥95%, D50 ≤20 µm, Pb ≤5 ppm (less strict than dental E551).
How to access this market: Hyderabad is India's pharma capital — Bulk Drug city. Target: Hetero Labs, Aurobindo Pharma (both Sangareddy district), Divi's Laboratories, Mylan. Share CoA showing whiteness, particle size, heavy metals. No regulatory approval required on your end — customer uses under their own Drug Licence. Start conversation Month 1, supply from Day 1.
Desilicated Residue → FCO Soil Amendment
HIGH PROBABILITY — ₹2–3L registration cost
+₹0.20 Cr/yr
945 MT × ₹2,100/MT uplift
Desilicated residue (2.862 MT/day = 945 MT/yr) is currently sold at ₹900/MT to brick kilns. It is silica-rich amorphous material with trace minerals — excellent as a soil micronutrient amendment and pH corrector. Upgraded to ₹3,000–5,000/MT under FCO (Fertiliser Control Order) as "silica/micronutrient mixture."
How to access: Apply for FCO registration with Dept of Agriculture, GoI (₹2–3L, 3–4 months). Sell to fertiliser distributors and agricultural input dealers across Telangana/Andhra. Telangana agri-input market is large. Alternatively, sell directly to sugarcane/paddy farmers near Sangareddy — silica improves crop resistance to pests and lodging. No process change required; just repackage and label correctly.
CO₂ Industrial Supply to TSIIC Neighbours
REQUIRES BUYER COMMITMENT FIRST
+₹0.62 Cr/yr
518 MT/yr × ₹12/kg industrial CO₂
Combustion produces 25.05 MT/day CO₂; the PCC precipitation process uses 9.36 MT/day (5% excess stoichiometric). Surplus: 15.69 MT/day = 5,178 MT/yr CO₂ currently vented to atmosphere. Even capturing 10% (518 MT/yr) for industrial supply generates ₹0.62 Cr/yr. Applications: welding gas, greenhouse horticulture (CO₂ enrichment), beverage carbonation, fire suppression recharge, chemical synthesis.
How to access: Sanand/Patancheru industrial belt within 40 km of Sangareddy has dozens of welding gas suppliers and greenhouse operators. Approach Air Liquide India, BOC Linde, or smaller regional CO₂ bottlers for a take-or-pay offtake. They install the compression and purification skid at their cost in exchange for low CO₂ price (₹8–12/kg). Capex for your flue gas cleaning: ₹15–25L (cyclone + NaOH scrubber already needed for TSPCB compliance). This is a demand-first opportunity — lock buyer before investing.
Toll RHA Processing — Spare Reactor Capacity
PLANT RUNNING AT 60% — 40% SPARE
+₹0.44 Cr/yr
5 MT/day × 250 days × ₹3,500/MT
At 60% utilisation, leach reactors and filter presses have 40% spare capacity. Offer toll processing to third-party RHA holders — you process their RHA into PS/PCC, they take the product, you earn a processing fee. Many rice mills in AP/Telangana accumulate RHA with no outlet. Fee: ₹3,000–5,000/MT RHA processed. At 5 MT/day × 250 operating days = 1,250 MT/yr.
How to access: Advertise to RHA aggregators in Krishna, West Godavari, Nalgonda districts. Toll arrangement keeps working capital simple — no feedstock purchase, just process and earn. Gradually reduce as your own utilisation ramps toward 90%. This stream naturally shrinks as Y2 production ramps, which is fine — use it only while spare capacity exists.
QC Lab as a Service — BET / PSD / XRF
SMALL BUT ZERO COST — ASSET ALREADY OWNED
+₹0.12 Cr/yr
~100 samples/month × ₹1,000 avg
The QC lab (BET surface area analyser, PSD, XRF) costs ₹40L capex and is used ~2–3 hours/day for internal testing. For the remaining time it can offer analytical services to TSIIC Sangareddy neighbouring companies (ceramics, minerals, construction materials, pharma). BET analysis: ₹3,000–5,000/sample; XRF: ₹2,000–3,000/sample; PSD: ₹1,500–2,500/sample.
How to access: Register as NABL-accredited lab (₹3–5L, 6–9 months) — premium fee then becomes ₹8,000–12,000/sample and attracts regulated industries. In the interim, offer informal characterisation at nominal rates to build relationships with neighbouring TSIIC companies. Post a rate card at TSIIC Sangareddy industrial association. No additional capex required.
BCR Carbon Credits — Upside from Y2 (not in Y1 base)
Y2+ UPSIDE · ₹1.27 Cr/yr · Not in base model
+₹1.27 Cr/yr
15.69 MT/day CO₂ × ₹400/tCO₂
Rice husk combustion CO₂ is biogenic — considered carbon-neutral under IPCC accounting. The 15.69 MT/day CO₂ surplus (not used in PCC process) = 5,178 MT/yr of biogenic CO₂ removals eligible for Biochar/Biogenic Carbon Removal (BCR) credits via Puro.earth or voluntary carbon markets at ₹400–800/tCO₂.
Timeline: Register with Puro.earth in Y1 (while plant is being built). First issuance in Y2 post-commissioning. India's domestic carbon credit framework (BIS Carbon) is expected to launch 2026–27 — Fluxara is well-positioned as an early registrant. DPIIT startup status provides regulatory facilitation. Target: ₹1.27 Cr/yr by Y3.
Y1 P&L — Three Scenarios (Year 1 · 60% Utilisation · 12-Month Moratorium)
BASE CASE — DPR v15

No changes to DPR OPEX or product mix

Revenue₹13.94 Cr
Standard PS ₹26/kg₹6.76 Cr
Bulk PCC ₹10/kg avg₹6.69 Cr
Residue ₹900/MT₹0.49 Cr
OPEX₹13.38 Cr
incl. CTAB ₹1.03 Crunnecessary
incl. Stearic ₹0.38 Crunnecessary
EBITDA₹0.56 Cr
EBITDA margin4.0%
Interest (moratorium)₹2.11 Cr
Net cash−₹1.55 Cr
0.27×
DSCR · covenant = 1.25×
BELOW COVENANT · promoter bridges ₹1.55 Cr
CONSERVATIVE — Product mix fix only

Remove CTAB/stearic + easy procurement wins

Revenue₹14.54 Cr
Standard PS + pharma excipient₹7.36 Cr
Bulk PCC ₹10/kg avg₹6.69 Cr
Residue (FCO upgraded)₹0.49 Cr
OPEX₹11.59 Cr
CTAB eliminated−₹1.03 Cr
Stearic eliminated−₹0.38 Cr
Rice husk + NaOH contract−₹0.38 Cr
EBITDA₹2.95 Cr
EBITDA margin20.3%
Interest (moratorium)₹2.11 Cr
Net cash+₹0.84 Cr
1.40×
DSCR · covenant = 1.25×
ABOVE COVENANT · cash-positive Y1
FULL OPTIMISATION — All streams

OPEX cuts + 5 new revenue streams

Revenue₹15.92 Cr
Standard PS + pharma₹8.36 Cr
PCC bulk + CO₂ + toll₹7.07 Cr
Residue + lab services₹0.49 Cr
OPEX₹10.88 Cr
Total savings vs base−₹2.50 Cr
Labour + solar + CaO−₹0.74 Cr
EBITDA₹5.04 Cr
EBITDA margin31.7%
Interest (moratorium)₹2.11 Cr
Net cash+₹2.93 Cr
2.39×
DSCR · covenant = 1.25×
COMFORTABLY BANKABLE · Y1 cash surplus
Waterfall — Full Optimisation EBITDA Build (Y1)
Base Revenue
₹13.94 Cr
+ Pharma excipient PS
+₹0.60 Cr
+ CO₂ industrial supply
+₹0.62 Cr
+ Toll RHA + residue + lab
+₹0.76 Cr
Optimised Revenue
₹15.92 Cr
Base OPEX
−₹13.38 Cr
CTAB eliminated
+₹1.03 Cr
Stearic eliminated
+₹0.38 Cr
Procurement + labour + solar
+₹1.13 Cr
Optimised OPEX
−₹10.88 Cr
EBITDA
₹5.04 Cr
Interest (moratorium only)
−₹2.11 Cr
Net Cash Surplus
+₹2.93 Cr
Conservative case is the bankable minimum. Even without CO₂ supply or toll processing (both need external buyers), fixing the product-mix OPEX error (no CTAB/stearic in Y1) + pharma excipient revenue gets Y1 DSCR to 1.40× — above the 1.25× bank covenant. That's the floor you can commit to in the bank submission. Full optimisation is the ceiling.
Telangana Government Incentives — Real Cash Benefits, Y1–Y5
Total Y1 Cash (not EBITDA)
₹1.47 Cr/yr
T-IDEA SGST + power subsidy
Cumulative Y1–Y5
₹7.35 Cr
Present value of incentive stream
Y1 Combined effect
3.86× DSCR
Optimised P&L + incentives
Bridging WC needed
₹0 Cr
vs ₹1.55 Cr base case — promoter freed
T-IDEA / TS-PRIDE SGST Reimbursement
₹1.26 Cr/yr · Years 1–5
Telangana Industrial Development and Entrepreneurs Advancement policy offers 100% SGST reimbursement for new manufacturing units in notified TSIIC industrial areas. Sangareddy is a TSIIC zone. On ₹13.94 Cr Y1 revenue with 18% GST (9% CGST + 9% SGST), SGST = ₹1.26 Cr — fully reimbursable as a cash grant quarterly.
  • File for TS-iPASS single-window clearance at the time of plant commissioning
  • Submit monthly GST-R1 returns as proof of SGST paid
  • Telangana Industries Dept credits reimbursement quarterly to company account
  • Valid for 5 years from first production — covers Y1 through Y5
  • Not EBITDA but cash in account — reduces promoter bridging WC need to zero
TS-PRIDE Power Tariff Subsidy
₹0.21 Cr/yr · Years 1–5
New manufacturing units in Telangana TSIIC parks receive ₹1/unit electricity subsidy for 5 years. On 2.13M kWh/yr net grid draw, this is ₹2.13M × ₹1 = ₹0.21 Cr/yr. Effectively reduces your electricity cost from ₹7/kWh to ₹6/kWh — a 14% tariff reduction.
  • Apply through TSIIC at TS-iPASS single-window on commissioning
  • TSERC issues subsidy voucher redeemable against TSSPDCL electricity bills
  • Combined with solar expansion (500 kWp), effective electricity rate drops to ~₹5.5/kWh
DPIIT SISFS Seed Grant (Already Deducted in CAPEX)
₹35L — One-time · Already in DPR
DPIIT Startup India Seed Fund Scheme (SISFS) provides up to ₹35L for proof-of-concept and product trials. Fluxara has DPIIT number 246192 — already eligible. Amount already deducted from CAPEX in DPR v15. Confirm receipt timing with DPIIT Hyderabad nodal office — ensure disbursement before financial close so it reduces equity contribution needed.
  • Submit application on startupindia.gov.in SISFS portal
  • Attach lab validation reports (SiO₂ extraction, causticisation trials) as PoC evidence
  • Disbursed in tranches — 40% on selection, 60% on milestone completion
Solar Subsidy — TSREDCO / PM-KUSUM Component C
₹12–15L one-time · for 500 kWp expansion
PM-KUSUM Component C provides 30% capital subsidy on solar for industrial consumers in agricultural districts. Sangareddy is an agricultural district. On 250 kWp additional solar at ₹30L capex, subsidy = ₹9L (30%). TSREDCO (Telangana Renewable Energy Development Corp) also offers 20% additional state-level subsidy on MSME solar projects — combined: ₹12–15L out of ₹30L capex recovered.
  • Apply through TSREDCO Hyderabad office with Udyam MSME certificate
  • Net capex after subsidy: ₹15–18L for 250 kWp additional solar
  • Payback at net capex: 8–9 months (vs 16 months before subsidy)
SIDBI ECLGS Working Capital Loan
₹1–2 Cr WC · 7.5% rate · Replaces promoter bridge
Emergency Credit Line Guarantee Scheme (ECLGS) via SIDBI offers collateral-free WC credit to MSME manufacturing units at 7.5% p.a. Use this to bridge the Y1 moratorium cash shortfall (base case ₹1.55 Cr) instead of promoter's personal funds. Lower rate than personal borrowing, keeps promoter equity unlocked for Phase 1B.
  • Apply through SIDBI Hyderabad branch with CMA data and DPR
  • CGSS guarantee covers collateral gap (same scheme as term loan)
  • Working capital drawn down as needed, repaid from Y2 cash surplus
Stamp Duty & Registration Exemption
₹9–12L one-time saving
TSIIC industrial park land acquisition is exempt from stamp duty and registration charges for new manufacturing units under TS-iPASS. On ₹3 Cr land cost (3 acres × ₹1 Cr/acre), stamp duty in Telangana = 6% = ₹18L. TSIIC/TS-iPASS exemption saves ₹9–12L at transaction. Ensure TS-iPASS clearance is obtained before land registration to claim this benefit.
  • File TS-iPASS application before land registration
  • Stamp duty exemption certificate issued within 3 working days
  • Present at SRO (Sub-Registrar Office) during registration
Combined Effect on Y1 Cash Position
Base Case Y1
EBITDA: ₹0.56 Cr
Interest: −₹2.11 Cr
Net: −₹1.55 Cr
Promoter bridges ₹1.55 Cr
Conservative Optimised
EBITDA: ₹2.95 Cr
Interest: −₹2.11 Cr
Net: +₹0.84 Cr
SGST rebate: +₹1.26 Cr
Total cash: +₹2.10 Cr
Full Optimisation
EBITDA: ₹5.04 Cr
Interest: −₹2.11 Cr
Net: +₹2.93 Cr
SGST + power: +₹1.47 Cr
Total cash: +₹4.40 Cr