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COMPANY PROFILE

1.ABOUTCOMPANY: M/S. BHARATI AUTOGAS Parallel Marketer We, Bharati Autogas is a Proprietorship Firm. We have our firm motto of cleaner and greener world. Our firm is rated by MDRA and they have granted Overall Rating 3.

Mr.G.K.Ramakrishna,

(Propritor) He is 47 years of age and has got

around 20 years experience in LPG equipment and applications in various industries. Mr. G.K.Ramakrishna has a track record of success in the business of LPG, with executive background to his credit. He is a man of vision and set clearcut goals before initiating any of its ventures.

He has also got good skills in Trade & Commerce and Marketing. For the past one decade, he has visited most of the states, in connection with various applications of LPG and particular reference to installations of Auto LPG Dispensing Stations, process and operations of machinery, equipment, and instrumentation etc. of ALDS.

He has erected 10 auto LPG station installations from start to commissioning stage, including IOCL & BPCL Installations. He has also attended in safety training in AUTO LPG operations. He has installed & commissioned IOCL ALDS at Nausari, Valsaad, and Ahmadabad in Gujarat state. He has got Operational experience of 32 ALDS while working with IACL as General Manager.

Work experience in 300 kg/ cm2 high pressure ammonia plant, experienced with stripper columns, distilation towers & absorption towers. Worked with syngas, H2, methane gas handling, naptha, solid handling, ball mill, fluid handling systems.

He has operated bottling plant at Hyderabad with 50 MT. storage facilities, which is under bottling assistance contract with M/s TotalGaz.

We, the staff of our Bharati Autogas, are working on Petrochemical / Auto Gas Industry since 1993 directly and indirectly. We are professionals and technocrats with a vast experience in the operations of the manufacturing, distribution, fabrication, erection, commissioning, Maintenance, Safety Engineering, handling and service the Petroleum products like LPG, Production, Bottling, Blending and processing Plants, Equipments , Gas conversion system for automobiles, tanks and Engineering. Effective marketing is started in A.P. and negotiations are going on with a dozen clients to take up the work. Administration, Marketing and Technical wings have been established and required training is being imparted to engineers and technicians in installations, operations, safety and other required areas. For procurement of raw material Auto LPG, MOU has been signed with M/s SHV Energy and agreements are also signed. The Company is currently pursuing Auto LPG from the importers, Super Gas & M/s. Indian Oil PETRONAS Limited. Etc. Bulk LPG purchased from these Companies, from their terminals is transported directly to LPG Stations by Bulk LPG Road Tankers. We have selected 3 prospective location in Andhra Pradesh. In these, we have already finalized 2 areas for ALDS installation and one for LPG Storage terminal, for which we are seeking CCOE approval. We have taken all consolidated efforts with systematic and planned approach; we are poised to achieve positive results as per the scheduled program. For the development of this project we have tied up with different manufacturers and suppliers.

We as well have tie up plans with manufacturers of Auto gas suppliers. Vaporizers for cars Reducers for auto rickshaws Solenoid Valves Electronic Controls Gas Tanks & Multivalve

We are experienced in Installation & commissioning of Autogas stations We have Gas conversion experts Institutions to train the mechanics for gas conversion center

OBJECTS: The main object of BHARATI Autogas is to promote auto LPG in India. PROJECTS: The company proposed to start 36 LPG Dispensing stations in the First phase all over India, 135 Nos. in the second phase and 279 Nos. in the third phase. The company is investing in the dispensing station expense and will be partially met by the franchisee of the station. The company will construct the station by the wellexperienced LPG Installer Sree LPG bottling Industry from Chennai with the CCOE approved materials. The LPG conversion kits will be supplied by the consortium members to the franchisee. The company will supply the Auto LPG to the Franchisee. DISTRIBUTION: Auto LPG will be drawn from the terminal storage of our supplier. LPG will be taken by our tanker lorry to the dispensing stations. Auto LPG will be supplied by the special trucks to the dispensing stations, which are incorporated with pumping system. PRODUCTS: The products supplied in our Auto LPG Dispensing stations are Auto LPG, Auto LPG Tanks of various sizes for various models of cars, LPG conversion systems and lubricants. The equipment proposed to use for the construction of the Auto LPG Dispensing station will be all approved by CCOE as per the norms.

1.

Business plans and projects cash flows

The company is poised to concentrate on operation of ALDS with base in AP and operations in adjoining states viz., Orissa, T.N. and Karnataka. The company is proposed to register uniform growth in business successfully by consolidating its resources on expanding the market share and bases on a well laid foundation, simultaneously also creating the basic infrastructure to support the services it has planned on a most economical and practical manner, minimizing the risk exposures and maximizing the prudent and skillful management of technical, personal, financial advantages it has got and established in the field.

To achieve the above objectives, taking advantages of the market dynamics and new opportunity thrown open in the ever increasing automotive sector, the companys future projection coverage in the radar screen for the next 5 years is presented as below. Sl.No. Details 1 1. 2. 3. 4. Establishment of ALDS Inland storage Blending plants Port storage facilities and 11 1 import 2 25 1 3 85 1 4 129 1 Year 5 200 1 Total 443 3 1 1

The target set is more realistic and definitely achievable and viable in its totality. Relative cash flow is projected in the 5 years financial statements appended herewith (Annexure M) Assumption and Practical study results: All the above proposed facilities right from ALDS to port terminals are of various dimensions, taking care of growth prospects and to lend ground support to our operational needs to the fuel stations targeted. We have assumed following statistical data and careful market analysis and keeping in mind the future expansion and additional demand. Under the basis of project requirement of LPG for the projected period is as below : Sales in KL S.No. phase 1. First Year Second Year 2. Third Year 6 30 135 Year Per day Per days) Month(30 Per Annum

180 900 3600

2160 10800 43200

3.

Forth Year Fifth Year

129 150

5400 10800

64800 129600

Giving allowance to failure, setbacks, foul market reaction, exigencies and other unfortunates, even the most conservative figures can be worked at 60% working levels which warrants a sales target of 1296 MT in the first year to 77,760 MT in the fifth year, taking into effect the market established in the preceding years. So the company is focused to create necessary infrastructure as support services to handle this volume of business in stages in advance to cater market demand survival and to have an edge on the competitors in maintaining systematic operations of ALDSs. BASIS OF PROJECTION Proposal is to scope all the southern states viz. A.P. Orissa, Karnataka and Pondicherry (UT) in the first spell and to have limited presence in the adjoining states viz. Maharashtra and M.P. bordering the states proposed in 4th and 5th years so as to have practical total coverage during the plan period. To own and operate the proposed ALDSs, supporting facilities of Inland storage. Port Import Terminal and Storage, Blending Plants are required in the years as detailed in above tables. Cost of establishment for these facilities is as below: a. Inland Storages : b. ALDS CODO : Small 40 MT LPG Stations - 1 No @ Rs.178 - 2 No @ Rs.90 Rs.178.00 Lakhs Rs.180.00 Lakhs _______ Rs. 358.00 Lakhs ________

________ Total 3N0 _______

2. MARKETTING PLAN FOR AUTO LPG


2.1 Commercial arrangements for auto LPG
To meet immediate requirements, following commercial arrangements are proposed.

2.1.1 SHV Energy The largest LPG company from Holand is supplying the LPG to us at their Choutuppal storage & at the Vizag Terminal to cater our Andhra Pradesh market. 2.1.2 Supply arrangement with Indian oil Petronas Private Limited. We are negotiating for supply agreement with Indian oil PETRONAS Pvt Ltd, a JV company between the Govt oil company Indian Oil Corporation Ltd and PETRONAS of Malaysia for getting the supply with a fixed formula price to the markets at West Bengal, Orissa, Bihar, UP and part of Madhya Pradesh. 2.1.3 Finolex Industries. The negotiations are going on to get a tank of LPG to store our imported LPG at Ratnagiri Terminal at Southern part of Maharashtra to cater the Maharashtra, Karnataka, Gujarat and part of Andhra Pradesh market. 2.1.4 Plant & Equipment / Technological details. 1 The plant and machinery required for handling and storage and delivery of auto LPG in retail outlets are of proven nature and both indigenous and imported are available. Technology is indigenous 2 Logistics will encompass auto LPG receipt, storage, dispensing after, installation and commissioning of ALDS with utmost safety in operation, backed by adequate training, technical audits, awareness programs, accident prevention, relief work management etc comprehensively.

Details of design and standards to be followed for construction and operation of these facilities are Design and standards prescribed under SMPV (u) rules, OISD guidelines shall be followed in the execution, operation, safety standards etc in all the facilities adhering to Department of Explosives rules and check measures.

2.2 ARRANGMENTS PLANNED TO REACH THE PRODUCT TO THE CUSTOMER CENTER / MARKETS.
2.2.1 Details of distributor network planned. We are planning to develop the following distributor network. Phase Phase Phase 1 36 Nos 2 135 Nos 3 - 279 Nos

2.2.2 Details of the basis for dealers appointment. Among other pre-requisites, the following will earn value points. a. b. c. d. e. Person with entrepreneurship urge Financially sound Maintain social status Keen on safety and environment Marketing talents.

2.2.2 Details of facilities planned and or existing for storage and distribution, showroom/ sales room/ office along with status of approvals. Existing a. b. c. d. Front line office with all infrastructure Adequate manpower in the areas of Technical, Marketing, Admin and other related areas. Show Room and sales office Storage facilities are being planned at Piglipur village, Hayatnagar

e. Planned a.

mandal, Ranga Reddy dist. A.P. Layout drawing enclosed. Singed 2 franchisees agreements in Andhra Pradesh and another 10 agreements within end of August 2012. Minimum 20 Nos of company owned retail out lets per state Effective distribution arrangement by devising suitable software and hardware.

3. DETAILES OF PRESENT PROJECT PROPOSED


3.1. Presently we intend to have Inland Storage of 40 KL of our own for our entire
operation and to appoint Franchisee throughout South India in phases

starting from South India in the first instance. We have widely advertised through our staff and response is excellent. Most of our Franchisee desire to have Financial tie up with banks on uniform pattern and so we would like to seek a model project approval to finance both Term Loan as well as cash credit facilities for the project operations, for each franchisee. 3.2. For your ready reference, we enclose a typical layout drawing of an ideal Auto LPG Dispensing Station.

3.3. Cost of the Project:


Inland Storage of 40 KL (APP) & ALDS CODO basis LPG Stations 358 Lakhs. a. Inland Storages : b. ALDS CODO : Small 40 MT LPG Stations - 1 No @ Rs.178 - 2 No @ Rs.90 Rs.178.00 Lakhs Rs.180.00 Lakhs

3.4. Target period: 90 to 120 Days

3.5. Means of Finance Besides our own margin of 20%, we expect a Loan up to 80% i.e. 286.50 Lakhs from the Finance Institutions (Comprising of both T.L and W.C.). All the machineries will be assigned to the Bank.

4. LOCATION:
We have selected 3 prospective locations in Andhra Pradesh. In these, we have already finalized 2 areas for Franchisee basis ALDS installation and one for LPG Storage, for which we are seeking CCOE approval. The proposed LPG Storage

will be created 2 km away adjoining to National Highways NH-9 in about 65000 sft area, which is sufficient depending upon the volume of anticipated LPG business expected in the locality and the safety norms stipulated. The proposed land will be own land located at Piglipur village, Hayatnagar mandal, Ranga Reddy dist. A.P. Layout drawing enclosed.

5. PROFITABILITY OF LPG STORAGE PROJECT


One storage tank with 40 KL capacity will cost around Rs. 178 Lakhs and will suffice our requirement for catering to supply needs of 15 ALDS stations. The time required to complete the project with all approvals including commissioning will be 90/120 days. The station will start earning from the day one and the investment made can be recovered within 36 months with a steady income to bear the interest, overheads, etc. apart from the profit. Whereas the installed capacity of the Storage is about 40,000 Liters per day, the optimum level is rated at 40000 liters per day. Incidentally, the breakeven is at 4500 liters per day and when this is exceeded, steady growth is achieved fast, thereafter minimizing the period of recovering the investment.

6. PRODUCTS
The products scheduled to be supplied to our Auto LPG Dispensing Stations: 1. 2. 3. 4. 5. 6. 7. 8. Auto LPG Lubricants LPG Conversion Systems for cars and auto rickshaws. Automobile spare parts. Products for Super market ( in executive pumps) Snacks. Coffee shop with beverages. ATM on selected ALDS.

9. THE ECONOMICS OF GAS CONVERSION


Cars Maruti/Santro/ Uno/ Matiz Petrol LPG 90% 16.2 FIAT/ FORD Ambassador/ Icon/ Corsa / Lancer/ Escort/ Palio / Esteem Astra Petro l 12 LPG 90% 10.8 Petrol 10 LPG90 % 9

Flues used

Fuel consumption 18 (kms/litre)

Conversion cost (in 16,000 Rs.) for Carburator Cars Conversion cost (in 17,000 Rs.0 for MPFI Cars Fuel Price* (Rs. Per 76 Liter) Cost per Km, Rs. 4.23 Savings in fuel cost, Rs. Per km Break-even kms for 13,361 Carbutator Cars 49 3.05 1.20

16,000

16,000

17,000

17,000

76 6.33

49 4.54 1.80

76 7.6

49 5.4 2.16

8,907

7,423

Break even kms 14,196 for MPFI Cars

9,464

7,887

The price of LPG and petrol were taken as at March, 2012

Project Feasibility Report: 1. About the Project


The Project is envisaged to operate Auto LPG Dispensing stations mainly in Southern States on a most realistic basis out of the expertise gained by the promoter in the first 10 stations. Considering the uncertain & abnormally raising cost of popular auto fuel - petrol, there is a tremendous demand from vehicle owners to go in for cheap, best & ideal alternative fuel Viz. LPG & CNG. It also promotes pollution reduction, better health of humanity & nature. Most of the automobile manufacturers of 3 & 4 wheeler segments have already got approvals and rolled down their LPG version vehicles as a popular measure with OEM kits; 2 wheeler segments is also busy in their R & D works and very sooner we can see the opportunity to here a huge impact on this large demand sector.

Most of the State Government & State Pollution Control Boards are also encouraging the shift to toxic emission free automotive on their highways and state ways and even offer incentives as promotional activity. Successfully a dozen manufacturers of conversion kits & systems also got licenses & clearances from Nodal agencies and rolled substantial of auto gas in Indian automobile sector. & ever increasing volume of gas conversion equipments successfully assuming the speedier growth accelerating popularization

Since the viable usage of

CNG will take more time to implement their piping,

compressing and distribution network in the south, auto LPG have terrific impact need in the immediate future. More over establishment of sizeable ALDSs both in

Public and Private sector in the recent 2 years have also contributed a lot urging about 60 % of the automotive users to going for cheap and toxic free auto gas mainly considering the cost saving of around 40 % over petrol and more life for engine and transmission parts they get as reward. It also has significant impact on the quality of the countrys air.

2. Feasibility:
Having projected the demand for clean fuel, let us analyse the viability, technical feasibility and profitability of the project in conjunction with the present scenario.

Viability:
The automotive vehicle manufacturing have recorded a steep growth 10 times in the past 5 years with more and more global manufacturers migrating / choosing their manufacturing base in India which offers tremendous business opportunity on logistics and economical grounds the vast scope of sourcing in ancillary , skilled the fruit of globalization with vast import and peaceful work force, cheap labor , engineering perfection, quality consciousness technical advantage etc blended with potential apart from ever increasing local demand prompted the sector to go in for more and more R & D , cost reduction so as to bring more popular and economical models to have competitive edge. It is projected by automotive watchers there will be a creation of 10 folder expansion in the projection of vehicles by 2013 conducted out of multifaceted service assuring the influence of growth in automotive sector very bright in the radar of Indian industry. With liberal credit extended by FIS, multi folder job opportunities thrown by IT Industry, heavy engineering, infrastructure, automotive, petrochemical and other sectors, the earning capacity of young generation stands increase 10 50 times prompting them to own 4 wheelers with in the short span of their employment. Both Central & State Governments huge expanded rapidly the highways and state ways making regulated, easy, maneuverability, more friendly roles etc. Owing to these and other implied factors the vehicle population records very high and steady growth year after year so the need from clean and cheap auto fuel.

Because of territorial disadvantages in the south for the time being limitation is there to establish natural gas and compression distribution, networking and so Auto LPG scope a better position as the ideal next best fuel to petrol. Establishment of ALDSs along with inland and port storages of ALPG has the advantages of proven indigenous technology with most of the machinery equipment instrumentation etc are either locally manufactured or easily and readily available at reasonable cost. Enough technical expertise is also available to ensure the regulations and safety aspects involved in establishment and operation takes proud riders seat. Availability of LPG is also comparatively better than other costlier petro products the project cost is also more reasonable enabling entrepreneur to get his return with in a span of 3 to 5 years. The factors listed above amply registered viability of the projects promoted by a promising operator.

b) Technical Feasibility:
Around 70 % of ALPG requirement is met by indigenous processing refining, cracking and other methods; with more and more gas findings and explorations in off and on the shores, the percentage is bound to increase.. More over the big players in the field like ONGC, GAIL, Reliance, Total OIL, SuperGas, Indian oil PETRONAS and other international giants have very big plans to expand their global operations and bring economical gas findings and processings , to ensure the cost within a contained rate. Indians are fore runners in extraction , process, refining , distilling, disintegrating, distributing and other engineering practices with huge resourceful skilled technical backup and mostly wanted throughout the world , middle east and other oil rich countries with their inventions , motivations etc. Creation of port storage for liquid cargo including hazardous and inflammable ones is also a most favorite dish in Indian petrochemical scenario therefore abundant technical expertise is available locally insuring speedier , economical and safe growth in this sector.

Machinery, Equipment, installation etc required can also be easily procured without much hustles as a sizeable brands are available with technological supervisee. In the context of huge and increasing investment we received both from national and international sources, Government findings aids from WB etc, there is keen activity in creation and development of mainly required infrastructure, India is only competing with most advanced countries in promotion of more ports and establish facilities to handle and store large volume of liquid cargo petrochemical, gas etc in huge quantities spread over through out the east and west coastal lines. India is also more familiar with ALDSs in the near past 15 years ; a dozen companies have come in with operational licenses and an equal amount of engineering excellence is also established in the installation process as well. All these are summaries to convenience that we have enough resources to promote the Business successfully with total safety strictly adhering to all regulations in letter and spirit.

c) Profitability:
For installing a medium sized ALDS with 1995 Liter i.e., 10 M.T storage Single dispenser with dual nozzles and other standard facilities is Estimated to cost an entrepreneur around Rs. 60 70 lacks. The installation will become operational with in 6 to 7 months including all approvals and Licenses. Average requirement of ALPG per station will be around 1500 2500 liters per day to begin with and may go up to 3 times on the basis gaining momentum. There will be margin of minimum of Rs.2 / Liter. Income towards the marketing of other products like lubricants, conversion kits, utilities as ancillary services in a medium grade town will fetch a lump sum of around Rs.1000 / day minimum, the administrative and other expenses per station cannot exceed Rs.1.0 lacks per month including interest on investment.

Therefore it is evident that a franchisee entrepreneur gets a steady income and return from his investment right from second year continuously in an increasing manner. As an operator, the Bharati Autogas company is also bound to get stepped up income in the increasing sale of ALPG, Installation of infrastructure, AMC, storage of product and related trade income from other merchandise promoted through the stations.

Conclusion:
The Bharati Autogas, company enjoys all infrastructural expertise, good marketing support, ideal location advantage skilled technicians and man power , guidance from the team of experts for training , resourceful and enthusiastic young management team, good relationship with FIS and local administration very good supplier, customer and client base etc. We aim to achieve the goals and set reach the target easily with the increase in number of ALDSs year after year and higher corresponding demand for ALPG in the growth oriented scenario and with the strength of augmented storage potential propose to create, the company will have Strong and phenomenal growth prospects. Cash line is sufficient to repay the loan obligations and maintain sustained growth. With the above salient aspects the project is more feasible in its totality.