Investment Opportunity for Pulp & Paper Mill, Vizag, India

Opportunity Snapshot

  • Country: India India
  • Industry: Manufacturing
  • Stage: Seed
  • Investment size: $3,000,000 / min. $300,000
  • ROI: 9% in 3 years
  • Type of investment: Debt

Investment Opportunity

Basically it is an agro base pulp and paper mill, main raw material is bagasse and it is available in nearby sugar mills abundantly, 1 Lakh ton/ Annum mill bagasse.

We are looking for investors for pulp & paper mill.
A total initial investment of 20 cores rupees required equivalent to 3,000,000.00 USD or 26,624,850.00 Egyptian Pound.

Any amount of investment is accepted. Kindly revert back for more details.

For your better information some important files are attached, kindly review.

Basically it is an agro base pulp and paper mill, main raw material is bagasse and it is available in nearby sugar mills abundantly, 1 Lakh ton/ Annum mill bagasse as such is required.

The main fuel is husk (Ooka) and pith, Husk is abundantly available in nearby rice mills and pith will be obtained as by-product of bagasse itself and remaining waste papers shall be purchased from nearby suppliers from vizag, AP, India.

Project Cost calculations for 100 TPD:
1. Deckle: 4 meters,
2. Speed: 200 M/ Min,
3. GSM: 80 to 140,
4. Quality: Absorbent Kraft and High BF Kraft
5. Raw Material: Bagasse and waste paper,
6. Water Discharge: 100 M3/ day
7. Water Intake: 3000 M3/ day,
8. Furnish: 65% Bagasse Pulp, 35% Waster paper Pulp
9. Pollution Control: Recovery Plant and ETP Plant,
10. Boilers: 25 TPH FTC, Recovery Boiler: 9TPH,
11. Turbine Generator: 3MW
12. Power consumption: 700 Units/ Ton of Paper
13. Fuels: Husk, Pith, Black Liquor
14. Area Required: 15 Acres and for future expansion 5 Acres
15. Project Cost Required: 80 Cores (excluding Land)
16. Time for implementation of project: 20 Months
17. Processing cost per Kg of paper:
a. Bagasse- 3.5 Rs,
b. Waste paper- 4.5 Rs,
c. Fuel- 4 Rs,
d. Chemical: 2 Rs
e. Maintenance & space: 2 Rs
f. Manpower- 2 Rs
g. Capital Interest: 2 Rs
h. Unforeseen contingencies: 3 Rs
Total Cost: 5+3+4+2+2+2+2+3= 23 Rs
Sale Price: 35 Rs (Real market price: 37 Rs)
Profit= 35-23= 12 Rs/ Kg
Total profit= 12*1000*100*330= 39.6 Cores Rs/ Year
Pay Back= Less than 2 1/2 Years
18. Tentative project cost estimation (Excluding Land cost)
a. Paper Machine: 33 cores
b. Boilers: 25 cores
c. Civil Works & Miscellaneous: 22 Cores
Total Cost: 33+25+22= 80 Cores

However detail engineering report shall be submitted by me and other specialist if required after taking decision.

This product has high demand within Andhra Pradesh State of India, can be sold as hot cakes, fortunately in southern India there are no big mills which produce absorbent paper.

Competitive Advantage

Tentative profit details: For every 29,850.00 USD investment, min 4,478.00/month profit after construction period onwards of 14 months i.e commencement of production.

Rationale for the deal

Tentative profit details: For every 29,850.00 USD investment, min 4,478.00/month profit after construction period onwards of 14 months i.e commencement of production.

Use of financing

A total initial investment of 20 cores rupees for the total project cost of 80 crores rupees would be required.

Opportunity for the investor

Tentative profit details: For every 29,850.00 USD investment, min 4,478.00/month profit after construction period onwards of 14 months i.e commencement of production.

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