Name of the Company M/s.

_____________ Bio Gas Private Limited

Constitution: : Private Limited Company
Date of Incorporation : 9th October 2015
CIN Taken
PAN Taken
GSTIN Applied For
MSME Registration Taken
Registered Address : Gujarat
Gujarat
Plant Address
Director : Mr. N Patel
Mr. B V Patel
Business Activity : Manufacturing of Pigment Black Carbon
Brief write-up about Company :

_____________ Bio-gas Private Limited was incorporated on ______________. It is classified as Non-govt

company and is registered at Registrar of Companies, Ahmedabad. Its authorized share capital is Rs.
20,000,000 and its paid up capital is Rs. 20,000,000.00. The company is starting manufacturing of
Pigment Black Carbon and bi-product as Diesel from Bitumen. Company is having capacity of
production of 20 MT in one batch of 3 Hour and accordingly daily capacity comes to 60 MT. in a day
for single line. We have considered 300 Days in a year and therefore yearly capacity comes to 18000
MT. for single line. (Factory capacity set for 10 Line looking to Future Demand)
_____________ Bio-gas Private Limited's Corporate Identification Number is (CIN)
____________________________________ and its registration number is _____________. Its Email address is
rupesh.gandhi@rediffmail.com and its registered address is Gujarat.

The unit has not availed any Credit Limit from any bank. The company is looking
for 10 Cr Fund by way of INVESTMENT PARTNER OR FINANCE
Share holding pattern as on: 31.03.21 :
Name of Promoters/ Major share Number of Shares Rs. in lacs % Holding
holders*
1 2 3 4
Promoters 2000000 200.00 100.00
FIs/Mutual
Funds/UTI/Banks/FIIs
NRI’s/OCBs
Public (Relatives of the
Promoters)
Total 2000000 200.00 100.00%

Pigment Black Carbon

 ________________________ BIO-GAS PRIVATE LIMITED
Carbon black (subtypes are acetylene black, channel black, furnace black, lamp
black and thermal black) is a material produced by the incomplete combustion of
heavy petroleum products such as FCC tar, coal tar, ethylene cracking tar, with the addition of a small
manufacturing process. Carbon black is a form of paracrystalline carbon that has a high surface-area-
to-volume ratio, albeit lower than that of activated carbon. It is dissimilar to soot in its much higher
surface-area-to-volume ratio and significantly lower (negligible and non-bioavailable) PAH
(polycyclic aromatic hydrocarbon) content. However, carbon black is widely used as a model
compound for diesel soot for diesel oxidation experiments. Carbon black is mainly used as a
reinforcing filler in tires and other rubber products. In plastics, paints, and inks, carbon black is used
as a color pigment. (Source: https://en.wikipedia.org/wiki/Carbon_black)
A huge shortage of carbon black, one of the key raw materials for making rubber products, has
pushed a large number of non-tyre small and medium rubber companies to the verge of closure. The
shortage of supply has intensified after an increase in demand from large established domestic-tyre
manufacturers post the increase of import duty on tyrs to 15 per cent from 10 per cent.
Interestingly, domestic carbon black manufacturers are still exporting 9,000-14,000 tonnes a month
despite lower realisation. Carbon black in the domestic market is priced at $1,450 a tonne while
global prices are at about $1,200 a tonne. Non-tyre manufacturers cannot rely on imports as there is
a duty of $36.17 a tonne on imports from Russia and $397 a tonne from China while it is $494 a
tonne on shipments from other countries.
Currently, the carbon black demand, including that of tyre manufacturers, is at 12.85 lakh tonnes
while the country’s manufacturing capacity is at 9.50 lakh tonnes.
Kamal Chowdhury, President, All India Rubber Industries Association, said the impact of carbon
black shortage is so severe over the past few months that over 1,000 small-scale units are on the
verge of closure leading to loss of nearly 2 lakh jobs, while the entire industry is losing about ₹750
crores every month. The largest carbon black manufacturers in India include Philips Carbon Black,
SKI Carbon Black and Himadri Speciality Chemicals.
The association has moved the government to remove the import duty till the domestic supply
improves. The small and medium units are involved in making various rubber products such as
conveyor belts and auto parts.
It has also asked the government to conduct cost audit on carbon black manufacturing companies to
find whether the companies have jacked up the prices taking advantage of shortage in the market.
Carbon black is the most preferred reinforcing material and filler in rubber products, both in tyre
and non-tyre segments, constituting 30 per cent of the product by weight. It is also used in plastics,
paints and inks as coloring pigments. The cost component of carbon black is nearing the cost of
primary rubber, while it has historically been at half that cost. (Source: https: // www.
thehindubusinessline.com/economy/policy/small-medium-rubber-units-hit-by-shortage-of-carbon-
black/article22765080.ece)

2.0 P R O M O T E R S
Mr. N Patel is the main developer of the Product.

Mr B V Patel is Mainly expert in Technology, Management, Marketing sales & Finance.

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 ________________________ BIO-GAS PRIVATE LIMITED

3.0 TEAM ORGANIZATION CHART

Director

Administration / Marketing Technical

1.Marketing Manager 1. Quality Control

2. Chief Production Manager
Factory Supervisor
A. Senior Account Officer Security
B. Accountant Labors
B. Office Clerk

Brief write-up about Company :

Co. Registration No. & Date of Incorporation Done
PAN No. Received
Importer Exporter Code / Central Excise Reg. Not Applicable
Patent / ISO Agency Final
GST No. Taken
GPCB Approval taken

4.0 TECHNICAL FEASIBILITY

PRODUCT : Carbon black is widely used as a model compound for diesel soot for diesel oxidation
experiments. Carbon black is mainly used as a reinforcing filler in tires and other rubber products. In
plastics, paints, and inks, carbon black is used as a color pigment.
RAW MATERIAL: The main raw material required is Bitumen and the main supplier of the product
is Gujarat Refinery, Koyli of Indian Oil Corporation Limited situated at Koyli, Vasad GIDC. Refinery is
35 Km far from our plant. Other raw material like catalyst, etc. are available locally.
TRANSPORTATION: The Unit is situated near to Nadiad, Kheda and many transportation units are
available to supply and distribution of product to Domestic market as well as International Market.
LABOUR: Skilled and semi-skilled labors and other administrative staff are easily available from
nearby areas of site.
ELECTRICITY: Unit has already availed 100 KW electric connections at site from M/s. Madhya
Gujarat Vij Company Limited.
WATER: Water is available at site from local water supply system as well as from borewell at plant.
INSTALLED CAPACITY AND PRODUCTION
Company is having capacity of production of 20 MT in one batch of 3 Hour and accordingly daily
capacity comes to 60 MT. in a day for single line. We have considered 300 Days in a year and
therefore yearly capacity comes to 18000 MT. for single line. Factory capacity set for 10 Line.
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 ________________________ BIO-GAS PRIVATE LIMITED

(Quantity in MT)

Year No of Line MT Plant CAP

PA
1 1 18000
2 1 18000
3 2 36000
4 2 36000
5 3 54000

MANUFACTURING PROCESS IN BRIEF


The raw material (Bitumen) will brought to the plant by tankers and unloaded in input
plant/storage tanks through heating Pressure Pumps along with catalyst.

After input of material, company will process the raw material at Sturrer plant through heating
between 300o to 400o.

Out of total material inserted in plant, 15% will be lost due to heating process and 40% will be
converted to furnace oil. Furnace oil is a bye product.

Remaining 45% will be Black Carbon (final product) and can be sale between 90 to 110 plus tax.

5.0 MARKETABILITY
Carbon black is widely used as a model compound for diesel soot for diesel oxidation
experiments. Carbon black is mainly used as a reinforcing filler in Tyres and other rubber products.
In plastics, paints, and inks, carbon black is used as a color pigment.
Global Total production was around 8,100,000 metric tons (8,900,000 short tons) in 2006. Global
consumption of carbon black, estimated at 13.2 million metric tons, valued at US$13.7 billion, in
2015, is expected to reach 13.9 million metric tons, valued at US$14.4 billion in 2016. Global
consumption is forecast to maintain a CAGR (compound annual growth rate) of 5.6% between 2016
and 2022, reaching 19.2 million metric tons, valued at US$20.4 billion, by 2022. The most common
use (70%) of carbon black is as a pigment and reinforcing phase in automobile tires.
Carbon black also helps conduct heat away from the tread and belt area of the tire, reducing thermal
damage and increasing tire life. About 20% of world production goes into belts, hoses, and other
non-tire rubber goods. The balance is mainly used as a pigment in inks, coatings and plastics. For
example, it is added to polypropylene because it absorbs ultraviolet radiation, which otherwise
causes the material to degrade.
Carbon black particles are also employed in some radar absorbent materials, in photocopier and
laser printer toner, and in other inks and paints. The high tinting strength and stability of carbon
black has also provided use in coloring of resins and films. [6]Carbon black has been used in various
applications for electronics. A good conductor of electricity, carbon black is used as a filler mixed in
plastics, elastomer, films, adhesives, and paints. [6] It is used as an antistatic additive agent in
automobile fuel caps and pipes. (Source: https://en.wikipedia.org/wiki/Carbon_black)
Promoters will continue their practice of a Customer Oriented Marketing strategy. The Customer will
be at the centre of all major decision making- for products offered, price and variety. In this,
customer and stakeholder feedback will be the center of executive decision making.

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 ________________________ BIO-GAS PRIVATE LIMITED

List of Major Tyres Manufacturer in India

 Apollo Tyres –
 JK Tyres and Industries Limited –
 MRF Tyres Ltd –
 CEAT Ltd. –
 Balkrishna Industries Ltd. –
 TVS Srichakra Ltd. –
 Goodyear India Limited –
 Govind Rubber Ltd. –

List of Major Suppliers:

 M/s. Gujarat Refinery, Koyli
 IOCL /IPCL
India Specialty Carbon Black Market, By Application
• Plastics
• Tyres
• Battery Electrodes
• Paints & Coating
• Inks & Toners
• Others (Rubber, etc.)

6.0 FINANCIAL FEASIBILITY

01. Cost of Project and its sources: Cost of Project
(Rs, in lacs)
Sr. Particulars Already Incurred up To be Incurred
No. to 31.03.21
1 Land 256000 Sq fit 00.00 0.00
2 Factory Shed, Comp Wall, Leveling of 852.43 0.00
land filling.
3 Plant & Machinery - Indigenous 00.00 850.0
  - Imported 0.00 0.00
4 Electrification 10.00 0.00
5 Computers & Peripherals 0.00 0.00
    862.43 850.00
6 Preliminary & Pre-operative Exp. For 24.95
development.
7 Margin Money for Working Cap. 150.00
  Total Rs….. 887.38 1000.00
       

Land Market Value is 15 Cr.

Financial Assistance Required: (Rs. in Crores)

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 ________________________ BIO-GAS PRIVATE LIMITED
Investment in Machinery 8.50
Working capital 1.50
Total Rs. 10.00

02. Profitability:

Profitability is good throughout the Loan. Repayment for Loan and Interest is _____ years.
Moreover, net cash accruals remain positive in subsequent year also as given in financial
calculation and it is sufficient to pay interest and also facilitate withdrawals. Please refer
Statements of financial statements of Project Report for detailed financial evaluation.

BITUMEN TO PIGMENT BLACK CARBON ONE LINE PER DAY CASH FLOW CALCULATION
Details RATE NO OF
3 Hours @ PER BATCH BATCH PER PER DAY PER DAY
Batch 20 MT KG COST DAY PRODUCTION COST
             
BITUMEN IN KG 20000 34 680000 3 60000 2040000
             
OUT PUT            
B DIESEL@40% 8000 45 360000 3 24000 1080000
CARBON @45% 9000 95 855000 3 27000 2565000
      1215000   51000 3645000
MFG COST            
             
NO Of MAN 6 500 3000 2   6000
MATERIAL COST           2040000
CAPITAL INTREST COST
98630
@12 % FOR 30 Cr          
MIS. COST           50000
TOTAL COST           2194630
PROFIT PD           1450370

03. Implementation Schedule

Activity Involved Starting Date Completion date

Placement of Order Immediately after Three month
Confirmation
Installation of Machinery 10 Days 10 Days
Testing of Machinery 10 Days 10 Days
Trail Run 10 Days 10 Days
Commencement of Productions Immediately
Moratorium Period 3 Months from Commencement of
Productions

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 ________________________ BIO-GAS PRIVATE LIMITED

7.0 SWOT Analysis

Strength:
 High Quality product
 Updated Technology. No company in India is manufacturing Carbon Black from
Bitumen
 Lower Development Cost
 The Promoters and their team have more than 6 years’ experience in business.
Weakness:
 Frequent updates in technology.
Opportunities:
 Looking to the Increase of demand of Black Carbon
 Easy to expand capacity & new feature
 Easy to market and Easy to Brand
Threats:
 Any future Government Policy
 Economic slow down
 Competition with other units

8.0 CONCLUSION

If we analyze the above data, it can be said that;

a) Promoters and their team are having experience of the very same segment of product, and
already gained the recognition & rapport in market.
b) The technical expertise of the promoters & management ensures that firm can service the
high value addition segment
c) Good demand in the market
d) Promoters have already achieved the required quality benchmarks through R & D, which
is the key element to prove that they possess technical and market need competency.
From the above study it can be said that,

The Promoters and their team are highly experienced in the line of business. Moreover, they
have been successfully developed the product mix and this is the first kid to product in the
country. These factors will contribute to the fast future development with minimum troubles.
Hence, the projects, present and future, are technically and economically viable and feasible.

Global Market:

The global carbon black market size was estimated at USD 17.22 billion in 2018 and is projected to
expand at a CAGR of 6.0% from 2019 to 2025. Rising product usage in the production of plastics is
anticipated to drive the global market over the forecast period. Moreover, rising usage of
these plastics in electrical and electronic components will boost the product demand further. Carbon
black is produced either by thermal decomposition or partial combustion method, which includes oil
or natural gas as a feedstock. It is produced by four different processes, which are furnace black
process, channel process, and acetylene black process, and Lampblack process.

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 ________________________ BIO-GAS PRIVATE LIMITED
Furnace black is the most commonly used method owing to its maximum production capacity.
Industrially, it is produced by the combustion of heavy petroleum products, such as coal tar and Fluid
Catalytic Cracking (FCC) tar, with vegetable oil. U.S. tire industry is expected to witness a surge in
demand owing to increasing automotive sales in the country. Tire manufacturers in the region are
establishing new units in the vicinity of automobile production centers. Moreover, quick adoption of
advanced technologies in tire production is further expected to fuel the market growth in the region.
The demand for carbon black in India stood at 984.63 thousand tons in 2018 and is projected to
grow at a CAGR of 5.82% during 2019-2030 to reach 1853.84 thousand tones by 2030.

Domestic Market :

Growth in the Indian packaging industry has increased the demand for carbon black in food
packaging, industrial film, lamination and carrier bags and high-quality protective packaging
applications. Furthermore, the Indian government's mission to make India a 100% electric vehicle
nation by 2030 under the new National Electric Mobility Mission Plan is expected to push the
demand for automobiles in the coming years.

This demand in turn would aid growth in ancillary industries such as tire industry, which use carbon
black as their primary raw material. Moreover, the demand for industrial rubber such as in conveyor
belts and hoses is anticipated to positively influence the demand for carbon black in India during
2019-2030.

Some of the major players operating in the Indian carbon black market are Phillips Carbon Black
Limited, SKI Carbon Black India Private Limited, Continental Carbon India Limited, Ralson Carbon
Black Limited, etc.

“Carbon black market in India is set to show promising growth in the next five years on account of
various favorable developments in the country. Major players such as Phillips Carbon Black Limited
have started incorporating backward integration to counter the fluctuation in prices of feedstock and
volatility in crude oil prices. Moreover, low cost production in the APAC region has helped Indian
players to consolidate their position in the carbon black market.” said Mr. Karan Chechi, Research
Director, with TechSci Research, a research based global management consulting firm.

The India Specialty Carbon Black Marketplace is growing rapidly, as applications in a

widespread ranges of industrial segments generate new opportunities for stakeholders.

Date of commencement of project Structure ready

Implementation period (in months) 3 months
Scheduled date of Completion of Project Can discuss
Commercial Operations Date (COD Can discuss
Moratorium (in months) 3 months from COD
Repayment period in months 60 Months
No. of installment 60 monthly installments
Starting Date Immediately after Machinery
Investor Capital Cash Back for 1 Line 6-9 Month
Land And Structure Cash Back 24 Month

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