Client: M J Biopharm Pvt. Ltd.

Project: PDL (Process Development Laboratory) at Pune.

Consultants: Doshi Consultants Pvt. Ltd.
Document Number: 603-PRJ-CP-02
Date/ Version: 20.05.2021/0

Option - 1 (New utility equipment for PDL) Option - 2 (extending existing utility lines for steam and RO-1 Water)
Particulars Cost Particulars Cost
CAPEX CAPEX
Civil cost for additional space (500ft2 @ 1600 INR/sq.ft) 800,000 Pipe rack 7,000,000
Boiler and accessories. (The cost includes total cost for a modular boiler package
inlcuding main shell type boiler, Fuel day tank, Day feed water tank, Instrumentation,
Chimney, Oil and water pumps, safety valve piping, fuel piping, water piping and
exhaust gas ducting) 1,500,000 Cost for pipes and insulation 900,000
Additional steam piping and accessories (including PRS) 350,000
Pre-treatment system (5 KL HDPE tank for buffer) 1,250,000
Subtotal 3,900,000 Subtotal 7,900,000

OPEX OPEX
Inventory and maintenance cost including annual boiler inspection. 250,000 Inventory cost 50,000

Oil cost (considering 50% of the consumption since the boiler will be generating steam
either way. In case of bigger boiler we get advantage of efficiency due to load
modulation and diversity.) Fuel considered is LDO (light diesel oil). 720,000 Maintenance cost (including manpower) 200,000
Electricity cost 306,000 Add cost for energy losses due to distribution 650,000
Subtotal 1,276,000 Subtotal 900,000

Total of CAPEX and OPEX 5,176,000 Total of CAPEX and OPEX 8,800,000
 Cumulative (total) Cumulative (Opex) Cumulative (total) Cumulative (Opex)
Option - 1 Capex Opex Total Option 1 Option 1 Option - 2 Capex Opex Total Option 2 Option 2
Year -1 3900000 1276000 5176000 5176000 1276000 Year -1 7900000 900000 8800000 8800000 900000
Year -2 0 1276000 1276000 6452000 2552000 Year -2 0 900000 900000 9700000 1800000
Year -3 0 1301520 1301520 7753520 3853520 Year -3 0 945000 945000 10645000 2745000
Year -4 0 1327550 1327550 9081070 5181070 Year -4 0 992250 992250 11637250 3737250
Year -5 0 1354101 1354101 10435172 6535172 Year -5 0 1041863 1041863 12679113 4779113
Year -6 1 1381183 1381184 11816356 7916355 Year -6 1 1093956 1093957 13773069 5873068
Year -7 2 1408807 1408809 13225165 9325162 Year -7 2 1148653 1148655 14921725 7021722

Considerations:
1 5% annual increase in cost is considered in OPEX of both options from year 3.
2 Cumulative cost is considered to get a better picture of the total cost involved. Cumulative means earlier + present cost.
3 LDO is the key factor in considering the procurement of new boiler as it gives substantial reduced costs.
4 From the charts it is clear that considering both results, only OPEX and the total cost, option 1 is more economical as comparted to option 2.
5 The cost incurred for Raw water line laying is not considered here. Although it wont be substantial, we expect it to be approximately 7.5 lakhs.
6 The utilities (especially pre-treatment system) are not just limited to PDL but also for F&D and canteen as well.
7 From the charts it is clear that considering both results, only OPEX and the total cost, option 1 is more economical as comparted to option 2.
8 DCPL still recommends to extend the lines and go for pipe rack than adding new equipment.
9 MJBPL also notified that the facility would be rented out in future. In that case it would be better to have dedicated utilities from metering and billing perspectives.
 Cumulative OPEX cost analysis chart Cumulative total cost analysis chart
18000000 30000000

Cumulative total Cost (CAPX + OPEX)

16000000
25000000
Cumulative OPEX

14000000
12000000 20000000
10000000
15000000
8000000
6000000 10000000
4000000
5000000
2000000
0 0
Year -1 Year -2 Year -3 Year -4 Year -5 Year -6 Year -7 1 2 3 4 5 6 7
Year Year

Cumulative (Opex) Option 2 Cumulative (Opex) Option 1 Cumulative (total) Option 1 Cumulative (total) Option 2