Opportunity Snapshot
Investment Opportunity
Toluene Manufacturing using a different route than the conventional process.
RM1 - Rs. 40-50 / Kg
Other RM - Rs. 8 / Kg
Approx. production cost - Rs. 56 / Kg @ RM1 price of Rs. 50
Sale price - 75 Rs./ Kg - minimum price for Toluene + Rs. 65 / Kg for Mix
Xylene (Side Product) - 15%
Reactors & Distillation Series
Effluent - Nil (Heavy residue for Fuel)
Market - > 500 MT per month
Proposed plant size - max. 500 MT per month
Manpower - 10 Skilled of Rs. 6 Lac/month + 12 Labors for 3 shifts (Rs. 1 Lac/Month)
Working capital - Rs. 70 Lac (On weekly basis of inventory)
Monthly gross profit - Rs. 70 Lac @ Rs. 70/Kg price of toluene
Capital Cost - approx. Rs. 200-300 Lac
Payback - 6 Months
Competitive Advantage
Simple to use cheap raw material available as byproduct from other industry.
Rationale for the deal
There is always a defined gap between the prices of Toluene and Benzene, which can be utilized for making the business more lucrative due to the very cheap second raw material compared to conventional producers.
Use of financing
New setup or an old plant with suitable infrastructure can be bought for immediate start up. Ideal location is Vadodara (Baroda).
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