Mse Cdp Cluster Application.docx

DPR for setting up of Common Facility Centre for _________________________________________ under MSE - CDP Scheme of Government of India 1.

Proposal under consideration Camilla Carbon Pvt. Ltd.

2.

Brief particulars of the proposal

Name of applicant, M/S Camilla Carbon Pvt. Ltd. Mr. Vinay J.S., contact details, etc. 566 B(P), Industrial Growth Centre, Holenarasipura Road, Hassan Pin Code: 573123 Mobile No. : 97319 20920 Location of Common M/S Camilla Carbon Pvt. Ltd. 566 B (P), Industrial Growth Centre, Facility Centre Holenarasipura Road, Hassan Pin Code: 573123 Mobile No. : 97319 20920 Main facilities being Details of facilities to be provided proposed Manufacture of coconut shell based activated carbon Date of receiving comments on Plant & Machineries from O/o DC, MSME

2.1. Introduction: brief about 2.1.1. General scenario of industrial growth/ cluster development in the state The global activated carbon market size was valued over USD 3.0 billion in 2015. In 2015, regarding revenue, The U.S. market was USD 759.3 million Growing awareness for clean water consumption coupled with the rising number of water treatment plants owing to government subsidies is anticipated to benefit the overall market growth over the forecast period. Activated carbon is used in various industries for air purification, groundwater remediation, spill clean-up and drinking water filtration. Governments across the globe are offering subsidies for water as well as air purification. These grants coupled with rapid industrialization particularly in regions such as Asia Pacific is forecasted to benefit the overall global market growth.

In 2015, Asia Pacific emerged as the most significant market and accounted for over 40% of overall global consumption. Rapid industrialization in the region, coupled with regulations aimed at safeguarding the environment are expected to benefit the regional market growth. Demand from countries such as Japan, India, and China are expected to be critical contributors to the overall regional market demand. North America demand is expected to grow at an anticipated CAGR of 13.0% over the forecast period. Stringent regulations aimed at safeguarding the environment, awareness regarding clean water consumption and prevalent industrialization have Benefitted the regional activated carbon demand.

2.1.2. Sector for which CFC is proposed to be set up For the small size industrial sector production of coconut shell based activated carbon for which raw material is abundantly available and presently is not utilised by others in this area 2.1.3. Cluster and its products, future prospects of products, Competition scenario, Backward and forward linkages This cluster is proposed to produce coconut shell based activated carbon which is having a wide prospects in the industrial sector as a raw material for purification. The raw material for the proposed cluster is coconut shell which is not at all utilised for value addition and going to be used for boiling water or wasted in this cluster area. The proposed activated carbon product is in demand domestically and internationally and there is no competitor in this cluster area presently. This cluster also forms a linkage for the utilisation of the coconut shell and produces activated carbon forming a forward linkage to the industry where there is sufficient demand in domestic as well as for export in countries like North America and Europe.

2.1.4. Basic data of cluster (Number of units, type of units [Micro/Small/Medium], and employment [direct /indirect], turnover, exports, etc.): Number of units

type units

of employment

40

Micro/small 900

[direct

Turnover exports

indirect],

domestic Rs Lakhs Rs Lakhs ports

3000

12,000

1,000

2.1.5. How the proposed CFC is relevant to the growth of the concerned cluster/sector

2

The raw material for the proposed CFC is coconut shell is widely available and going as waste more than 90 %. The proposed CFC is going to utilise the coconut shell going as waste and convert it as activated carbon which is having a huge demand in the domestic and export market as mentioned in 2.1.1 3

Information about SPV

a. b. c. d. e. f. g. h.

i.

j.

1 2

Description Name and address Nature of SPV (company or Society or Trust) Names of the State Govt and MSME officials in SPV Date of formation of the company Date of commencement of business Number of MSE Member Units1 Bye laws or MoA and AoA submitted Main objects of the SPV2

Details/ Compliance Mr. Vinay J. S., M/s Camilla Carbon Pvt. Ltd. Private Ltd. Govt. of Karnataka KCTU, 11/01/2019 11/01/2019 22 Yes 1. To utilise the coconut shell going as waste in the cluster and add value to it by converting it into activated carbon which is of high value and there is demand in domestic and export market. 2. To provide opportunity for the employment of the rural women and men 3. To improve the economy of the cluster as well as to contribute to the Indian foreign exchange earnings in our own capacity

SPV to have a character of Yes inclusiveness wherein provision for enrolling new members to enable prospective entrepreneurs in the cluster to utilise the facility Clause about ‘Profits/ Yes surplus to be ploughed back to CFC’ included or

Should be more than 20 cluster MSEs (and not individuals) as members in the SPV Main object of the SPV should rotate around cluster development

3

k. l. m. n. o.

p. q.

not Authorized share capital Shareholding Pattern3 (Annexure 1 to be filled in) Commitment letter for SPV Upfront contribution4 SPV specific A/c in schedule bank Clause about ‘CFC may be utilised by SPV members as also others in a cluster and Evidence for SPV members’ ability to utilise at least 60% of installed capacity’ Main Role of SPV

Rs. 10 Lakhs

SBI Bank Yes

Common Facility Centre for coconut shell carbon product

Trust building of SPV5 so that CFC may be successful

4. Details of Project Promoters /Sponsors i.

Brief bio-data of Promoters Mr. Vinay J.S., is a B.E. graduate having 17 years of industrial experience in the field of activated carbon field

ii.

The details of the promoters are as under :

Name of the Mr. Vinay J. S. Office bearers of the Company Age (years) 34 years Educational B.E. Qualification Relationship with the chief promoter

3

No single unit will hold more than 10 % in the equity capital (or equivalent capital contribution) of SPV. Share of the cluster beneficiaries should be as high as possible but not less than 10% of cost of CFC 5 Evidence of collective programme / initiative, soft intervention, discussions with the SPV members, informal channels may be used as an evidence for Trust building. 4

4

Experience in what capacity/ industry/ years Income Tax / Wealth Tax Status (returns for 3 years to be furnished) Other concerns interest / in which capacity /financial stake iii.

Brief about Compliance with KYC guidelines

iv.

Details of connected lending - Whether the directors / promoters of SPV are having any directorship on any bank etc. No, but directors have cordial relationship with the bankers.

v.

Adverse auditor’s remarks, if any – to be culled out from audit report, in case available. If SPV is new, it can be indicated as not applicable Not Applicable

vi.

Particulars of previous assistance from financial institutions / banks - If SPV is new, it can be indicated as not applicable Not Applicable

vii.

Pending court cases initiated by other banks/FIs, if any - - If SPV is new, it can be indicated as not applicable Not Applicable

viii.

Management Set-up

5

To indicate details regarding who will be the main persons involved in running of CFC, its operations etc. Mr. Vinay J. S. will be the main person involved in running of CFC, 5. Eligibility as per guidelines of MSE-CDP Eligibility Criteria 1.

2.

3.

4.

5.

Comments

GoI grant will be restricted to 70% of the cost of project of maximum Rs 15.00 crore. GoI grant will be 90% for CFCs in NE & Hill States, Clusters with more than 50% (a) micro/ village (b) women owned (c) SC/ST units. Cost of project includes cost of Land (subject to max. of 25% of Project Cost), building, preoperative expenses, preliminary expenses, machinery & equipment, miscellaneous fixed assets, support infrastructure such as water supply, electricity and margin money for working capital. The entire cost of land and building for CFC shall be met by SPV/State Government concerned. In case existing land and building is provided by stakeholders, the cost of land and building will be decided on the basis of valuation report prepared by an approved agency of Central/State Govt. Departments/FIs/Public Sector Banks. Cost of land and building may be taken towards contribution for the project. CFC can be set up in leased premises. However, the lease should be legally tenable and for a fairly long duration (say 15 years).

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6.

7.

8.

7

Escalation in the cost of project above the sanctioned amount, due to any reason, will be borne by the SPV/ State Government. The Central Government shall not accept any financial liability arising out of operation of any CFC. DPR should be appraised by a It can be indicated that the proposal is bank (if bank financing is being submitted to SIDBI involved) / independent Technical Consultancy Organization/ SIDBI. Proposals approved and forwarded by the concerned state government.

Implementing Arrangements a. b.

Description Name of Implementation Agency Role of Implementing Agency (e.g. implementation and monitoring of project, sending regular progress reports, issuing proper UCs, )

c.

Implementation Period 6

d.

Commitment of State Government upfront contribution Commitment of Loans (Working capital and/ or term loan)

e.

Compliance

8. Management and shareholding details: 9. Technical Aspects: 9.1

Scope of the project (including components/ sections of CFC)

9.2

Locational details7 and availability of infrastructural facilities

9.3

Technology

6

CFC should be operationalized within two years from the date of final approval Minimum and maximum distance of cluster units from the place of CFC to be specifically mentioned so that CFC is accessible to the units. 7

7

9.4

Raw materials / components

9.5

Utilities

9.5.1 Power 9.5.2 Water 9.6

Effluent disposal

9.7

Manpower 

The details of the manpower are as under : S.No.

Description of the employee

Number

1 2 3 4 5 6 7 8 9

10. Implementation Schedule:

Activities Preparation of Project Report Sanction of Grant from Government of India NOC from Pollution Control Board Site Development Building up-keep Placement of order to equipment supplier Supply of equipments by suppliers Installation of equipments at site Sanction of power connection

8

Start Date

Completion Date

Activities

Start Date

Completion Date

Trial Run Commercial Production 11. Project components: 11.1

Estimated Project Cost (` in lakh): Particulars 1 2 3 4

Land and Building Plant & Machinery including MFA, Installation, Taxes/duties, Contingencies, etc. Preliminary & Pre-operative expenses8 Margin money for Working Capital9 Total

11.2

Details of Land, Site Development and Building & Civil Work

11.3

Plant & Machinery: Description

No.

1 2 3

Copies of quotations to be furnished

11.4 Comments on Plant and Machineries from O/o DC, MSME: 11.5 Misc. fixed assets 11.6 Preliminary expenses 11.7 Pre-operative expenses 11.8 Contingency Provisions:

11.9 Margin money for Working Capital 8 9

Amount

Maximum - 2% of project cost Based on actual, but less than 25% of working capital requirements for 1 st Year

9

(` in lakh) Amount

12 Proposed Means of Financing (Rs. in lakh): Particulars

Total 12.1

SPV contribution:

12.2

Grant-in-aid from Govt. of India under MSE-CDP

12.3

Grant-in-aid from the State Government

12.4

Bank Loan/ others

%age

Amount

100.00

1453.50

13 Arrangements for utilization of facilities10 by cluster units: Usage Charges :

14 Comments on Commercial viability:

15 Financial Economic viability: Assumptions underlying the profitability estimates, projected cash flow statements and projected balance sheet are placed at Annexure and the summary of key parameters for the first 5 years are given below:(` Lakh) S.No

Particulars

1

Net Block

2

Current Assets (incl. cash/bank balance)

3

Current Liabilities (incl. principal installment falling due during the

FY 1

10

FY 2`

FY3

FY4

FY5

User charges for services of CFC shall be close to prevailing market prices, as decided by the Governing Council of the SPV

10

year) 4

Long term borrowings

5

Capital

6

Reserves and Surplus

7

Unsecured loan

8

Net Worth (incl. GoI Subsidy as Quasiequity)

9

Income

10

Gross profit

11

Depreciation

12

Profit after tax

13

Gross Cash Accruals

The projected revenue of SPV is based upon the following major assumptions:

16 Status of Government approvals

16.1 Pollution control 16.2 Permission for land use (conversion for industrial purpose) 17 Favorable and Risk Factors of the project : SWOT Analysis

18 Risk Mitigation Framework: Key risks during the implementation and operations phase of the Project and the mitigations measures thereof could be as below: During implementation: During operations:

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19 Economics of the project

20 Conclusion

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