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Business Plan for1. Manufacturing Of Induction Furnace- Steel Melting (Steel Industries) 2. Manufacturing of Induction Heaters ( Forging Industries) 3.Erection / Commissioning of all make of Furnaces 4.Turnkey Project Consultancy 5. Supply Of spares for all make of Furnace
1.
Promoters:
Bijoyen Das
Financing:
Initial Financing Requested: Term Loan- INR 75,000,00 CC/OD-INR 50,000,00 TOTAL: INR 125,000,00 The Loan Amount will be paid over 6 years. This debt covers Manufacturing plant and machinery.
Confidentiality: This report is Confidential and sole Property of promoters. It is intended only for use by the person to whom it is transmitted.
Executive Summary
Serving Steel and Forging Industry. Steel a Mother Industries to Infrastructure and Engineering. Our Business is based on 4 simple Facts: 1. Offer the Technology most fit to Indian tropical and working Conditions. 2. Round the Clock After Sales Services. 3. Minimum downtime and Low Energy Consumption. 4. Environment concern by 99.99 % recyclable equipment on disposal.
Objective : To Provide equipment with low energy consumption , minimum down time, round the clock Service and create relationship with at least 180 customers in 3 years. Our Key To Success: Dedicated hard work of Founders Recruiting Technical / Managerial Talent Marketing & Support Services Lowering overall Cost
Mission: To Save Energy and increase productivity and making equipment by use of Made in India parts
Company Summary To produce High productive and Low Energy Consuming Melting & Forging equipment
Company Ownership: Three Promoters Bijoyen Das-34% Archana Singh-33% Jignesh Bhatt-33% Location & Facilities: Vatva-proximity to suppliers and Labour easy. On expansion company may move toward Mehemedabad well Connected to Ahmedabad by rail/road and 24 kms from Vatva. Services: Being the Equipment very high tech in nature Pre & after sales services play the key role in selection of equipment/supplier. Competitive Comparison: The Performance of equipment will be at least at par with any international/national competitors and our Design to suit Indian Tropical Conditions, Round the clock after sales Services and Low cost will be added advantage for us.
Bijoyen Das -Post Graduate In Mechanical Engineering with AMIE (Electrical) with 20 years of experience in Design, manufacturing, Marketing and execution of similar and other metallurgical equipment on International Level with expertise over application engineering. Executed more than 75 Turnkey Projects in India, Bangladesh, UAE and East Africa. He Is Jt Managing Director in M/S Powercon Group, Manufacturing smaller range of Furnace for Foundry application.
Archana Singh :B.Tech Engineer with more than 5 years of experience of Production Management, Customer Services, SCM with Expertise Over marketing capital equipment and Brand Building on National Level.
Jignesh Bhatt: Post Graduate in Finance with expertise over Equity market, commercial, Administrative and material management function with more than 10 years of experience.
Industry Analysis
1.
Barrier to Entry: Looking towards the complexity of technology for manufacturing and application Engineering, Very Low chance of New Entrants.
2.
Bargaining Power of Suppliers : Low due to competition among them and general application components.
Bargaining Power Of Customer: Moderate Substitutes: Arc furnaces but not viable in India due to increased Power, Electrode and Oxygen gas cost. The Fuel fired Furnaces can not meet the high temperature requirement in melting and high scale losses in forging applications. Rivalry: Moderate ( demand of steel is more than supplies )
3. 4.
5.
Main Competitors
Multinationals: Inductotherm-US-Ahmedabad ABP-(Joint venture of Swiss & USA)- Vadodara
National & Local Players: Electotherm - Ahmedabad Megatherm - kolkata Superheat - Kolkata/Ahmedabad
Promotion : Initial promotional activities through Related Industrial Bulletin/magazine, Steel Association Seminars only, on expansion we will participate in Steel/Forging Congress exhibitions on National level.
1,10,000,00
45,000,00
Assumption: 1. Rented Shed @ Rs.35000 pm on 7 years agreement. Personal property of a Director. 2. Term Loan Interest @ 12% spread over 6 years, repayment Rs.15 lac 2 nd year & onward. 3. OD/CC Interest @ 13.5% 4. Depreciation @ 20% by SLM 5. No credit sales as per Standard practice of Industry, advance payment 30-40% 6. Suppliers credit available 30-90 days or we can get heavy discount on cash Purchase.
Sales forecast
35 30 25 20 15 10 5 0 1st Year 2nd Year 3rd Year Sales spares Commi amc En.audit Consulting
Disc/year 1 2 3
Equip sales
Spares Sub Total
18,000,00,00
4,000,00,00 22,000,00,00
21.50,000,00
5,000,00,00 26,50,000,00
26,50,000,00
7,000,00,00 33,50,000,00
Comissioning
AMC Ene Audit Consulting Total
18,000,00
5,000,00 15,000,00 12,000,00 22,50,000,00
27,000,00
24,000,00 15,000,00 20,000,00 27,36,000,00
36,000,00
30,000,00 15,000,00 24,000,00 34,55,000,00
YEAR 2
AMC Spares
Energy Audit
Consulting
YEAR 1
Comissioning
Energy Audit
Consulting
Equip sales
AMC Spares
Equip sales
YEAR 3
YEAR 3
Equip sales
PERSONAL PLAN
Description Directors Purchase Asst A/c Asst Security Personal/Time Keeping Mechanical Engg Electrical Engg Mechanical Techician TOTAL Nos. 3 2 2 2 2 1 3 1 15 year 1 14,40,000 2,40,000 2,40,000 1,20,000 84,000 1,20,000 2,52,000 60,000 25,56,000 year 2 18,000,00 2,88,000 2,88,000 1,44,000 96,000 1,44,000 3,06,000 78,000 31,44,000 year 3 27,000,00 3,60,000 3,60,000 1,68,000 1,20,000 1,80,000 3,60,000 96,000 39,84,000
Annual Cost
DISCRIPTION/YEAR VARIABLE COST RMC 60% OF SALES Contract labour Utilities 13,20,000,00 14,40,000 6,000,00 15,90,000,00 17,20,000 7,20,000 20,10,000,00 25,20,000 8,64,000 Year 1 Year 2 year 3
Sales Expenses
Sub Total 1 FIXED COST Annual Rent Salary OH Sales Promo expenses Other Misc Sub Total 2 Depreciation
6,000,00
13,46,40,000
7,000,00
16,21,400
8,000,00
20,51,84,000
Sub Total 3
Interest
64,76,000
13,50,000
72,64,000
15,000,00
83,04,000
15,54,000
Income Statement
DISCRIPTION / YEAR SALES V.C CONTRIBUTION F.COST PBDI&T YEAR 1 22,50,000,00 (13,46,40,000) 9,03,60,000 (44,76,000) 8,58,84,000 YEAR 2 27,36,000,00 (16,21,40,000) 11,14,60,000 (52,64,000) 10,61,96,000 YEAR 3 34,55,000,00 (20,51,84,000) 14,03,16,000 (63,04,000) 13,40,000,00
DEPRICIATION
PBIT INTEREST PBT TAX@ 40% PAT EPS( 45K Shares) @ Rs.100 ROI BEP Debt Ratio (LTD/TCE) DSCR(P+D+I/I+LT INSTL)
(20,000,00)
8,38,84,000 (13,50,000) 8,25,34,000 (3,30,13,600) 4,95,20,000 1100.45 4.12 1,45,06,972 1.6 18.5
(20,000,00)
10,41,000,00 (15,000,00) 10,26,96,000 4,10,78,400 6,16,17,600 1369.28 5.86 1,66,02,847 5.86 21.7
(20,000,00)
13,20,12,000 (15,54,000) 13,04,58,000 (5,21,83,200) 7,82,74,800 1739.44 8.69 1,55,23,270 8.69 26.77
SFC PANEL