PRE FEASIBILITY REPORT

FOR

Proposed Expansion of Bulk Drug & Intermediate Manufacturing Unit

OF

M/S. Veer-Chemie & Aromatics (P) LIMITED

AT

Plot No: A-4, Co-Operative Industrial Estate, Balanagar, Rangareddy, State

BY

M/S. Veer-Chemie & Aromatics (P) LIMITED

Plot No: A-4, Co-Operative Industrial Estate, Balanagar, Rangareddy, Telangana State

March, 2015

Contents

S. No. Description Page no. 1.0 Executive Summary 1 2.0 Introduction of The Proposed Project 2 2.1 Project Proponent 2 2.2 Brief description of nature of the project. 2 Need for the project and its importance to the country and 2.3 2 -3 or region 2.4 Demand-Supply Gap. 3 Employment Generation(Direct and Indirect) due to the 2.5 3 project 3.0 Project description 4 – 6 3.1 Products and Production Capacity 7 3.2 Raw materials required and Quantities 7 3.3 Manufacturing Process 7 – 8 3.4 Resource – Utilize and Recycling 8 3.4.1 Water 9 3.4.2 Power Requirement 9 3.4.3 Fuel Requirement 9 3.5 Quantity of wastes to be generated 9 3.5.1 Waste Water Generation and utilization 9 3.5.2 Solid waste generation and Disposal 10 Schematic representations of the feasibility drawing which 3.6 10 give information of EIA purpose. 4.0 Site Analysis 11 4.1 Connectivity 11 4.2 Land Form, Land use and Land ownership. 11 4.3 Existing Infrastructure 11 4.4 Soil classification 11 4.5 Climatic data from secondary sources. 11 4.6 Social Infrastructure available. 11 5.0 Planning brief 11 6.0 Proposed infrastructure 12 6.1 Industrial Area 12 6.2 Residential Area 12 6.3 Green Belt: 12 6.4 Social Infrastructure 12 6.5 Water management 12 6.6 Sewerage System 13 6.7 Industrial Waste Management 13 7.0 Rehabilitation and Resettlement (R&R) Plan 13 8.0 Project Schedule and Cost estimates 13 9.0 Analysis of project 13

LIST OF TABLES

Table No Description Page no. 2.1 Total Employment 3 3.1 Proposed Products and Quantities 7 3.2 Water Requirement Details 9 3.3 Wastewater generation and Treatment Method 9 3.3 Solid waste generation and Disposal 10 8.1 Project Cost 13

LIST OF FIGURES

Figure No Description Page no. 1.1 Location Map 5 1.2 Google Earth Map Showing Veer- Chemie & Aromatics 6 (P) Limited

LIST OF FLOW CHART

Flow Chart No Description Page no. 3.1 Generalized Flow Chart for Bulk Drug 8 Manufacturing PRE FEASIBILITY REPORT

1.0 EXECUTIVE SUMMARY M/s.Veer- Chemie (P) Limited was incorporated in 1972 and is a leading manufacturer of bulk drugs and intermediates and one of the world's largest producer of Vitamin B3.

S. No Parameter Description Plot No; A-4, Co-op Ind. Estate, Balanagar, 1 Project Location , Telangana State Category of Project as per 2 EIA Notification & 5(f) “B” Amendments 3 Project cost 01.00 Crores for expansion 4 Plot area 6870 Sq.Mts Proposed Products Existing : 56.00 Tonns /Month 5 Proposed :375.00 Tonns /Month

6 Resources 600 KVA (I)Electricity Requirement SPDCL Source of electricity D. G. Sets Existing : 125 KVA (Continued ) 62.50 KVA (Continued )

Proposed : 200 KVA Existing : 10 KLD

(II)Water consumption Proposed : 147.55 KLD IDA water Supply Source of water 102.36 KLD Waste water generation Mode of disposal Zero Liquid Discharge System

(III)Boiler Existing : 2.0 TPH Coal fired Boiler (Continued) : 2,00,000 kcal/hr. Thermo pack Boiler (Continued) Coal – 5.43 MT / Day (V)Fuel 7 Solid waste generation Mentioned in Para 3.3 of report National Highway 9 – 1.5 KM 8 Nearest Highway (Hyderabad – Solapur Road (Mumbai Highway ))

9 Nearest Railway Station Railway Station –3.1 KMs 10 Nearest Air Port Rajiv Gandhi International Airport - 26.0 KMs

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2.0 INTRODUCTION OF THE PROJECT The objective of this pre- feasibility study is to provide information for the proposed expansion of Bulk Drug and Intermediate Manufacturing unit of M/s. Veer- Chemie & Aromatics (P) Limited at Plot No: A-4, Co-op Ind. Estate, Balanagar, Hyderabad, Telangana State.

2.1 Project Proponent M/s. Veer- Chemie & Aromatics (P) Limited was incorporated in 1972 for the purpose of establishing Bulk drugs (APIs) and Intermediates manufacturing unit and promoted by Mr. Ranveer P V, Managing Director aged 67 years and he has 35 years of sound exposure in Bulk Drug industry. At present he is associated with M/s. Rasula Pharmaceuticals & Fine Chemicals as a Director, M/s. Island Veer Chemie Private Limited as a President and M/s. Century Fiber Plates Private Limited as a Director.

Mr. P. Lakshmana Rao is Director of the company and aged 67 years and he has 35 years of sound exposure in Bulk Drug industry. At present he is associated with M/s. Rasula Pharmaceuticals & Fine Chemicals as a Director, M/s. Island Veer Chemie Private Limited as a Director – Technical and M/s. Vinayaka Metal Fabs as a Partner. Mr. Anupveer Poddatoori is Director of the company and He has completed his MS in Chemical Engineering in the year 2001 from ILLINOIS INSTITUTE OF TECHNOLOGY, Chicago University. He has about 14 years of experience in drug manufacturing industries and has sound knowledge in R& D activities.

2.2 Brief description of nature of the project.

Veer Chemie is a leading manufacturer of bulk drugs and intermediates and one of the world's largest producer of Vitamin B3 We serve customers across continents including the USA, Europe, South America, Canada and the Asia Pacific.

2.3 Need for the project and its importance to the country and or region

India's pharmaceutical industry is now the third largest in the world in terms of volume and 14th in terms of value. Being a ‘Life Saving Drug’, there is a huge demand and potential of marketing in Gujarat, India and around the world.

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In fact, bulk drugs/ API’s are normally not used in their basic form, so the demand for basic drugs emanates from formulation industries manufacturing medicines in various forms. As medicines are highly consumed in all seasons, there are thousands of companies in India, which are manufacturing tablets, capsules & syrups of the proposed products. In India, it is highly demanded in the states like , Gujrat, Uttarakhand, Punjab, Haryana, Uttar Pradesh, Tamilnadu, Maharashtra, West Bengal, etc. These states are the hub of the Pharmaceuticals markets. Looking the anticipated demand of healthcare sector in domestic as well as global market and growing volume of pharmaceuticals industry, the proposed project to manufacture Pharmaceutical Bulk Drugs and & Drugs Intermediates, have no doubt for the guarantee of the product and its acceptability in the local and international market. There is huge demand for Export in countries like Sri Lanka, Iran, Bangladesh, Pakistan, Bhutan, Vietnam, Africa, Nigeria, Singapore, Malaysia, Jordan etc

2.4 Demand-Supply Gap. There is a quite considerable gap between supply and demand for bulk drugs and intermediates. Very few players are in the market who can offer continuous supply. The company wants to bridge this gap between demand and supply by expanding the production capacity and thereby, making good business. Company's marketing edge comes from its direct and close contact with the customers. Their products are major strength of their customers. Each stage of their product is been monitored /checked for their quality to ensure quality product reaches their customer. They plan to launch new products every year to satisfy the need of their customers as per the market demand.

2.5 Employment Generation (Direct and Indirect) due to the project Additional employment generation due to the proposed expansion if about 15 permanent and contractual employees. Apart from this there will be significant non estimated employment generation at the supplier firms and service industry providing services to the company. Company shall be giving preference to people from economically weaker sections for employment in various semi-skilled/unskilled jobs

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thereby contributing to their up liftment. The details of total employment in this unit shown in below Table2.1. TABLE 2.1: TOTAL EMPLOYMENT Particulars No. of employees Functional Area Key managerial 2 Finance, Marketing, Production, staff Quality control, R&D, Logistics etc. Administration 4 Office work Skilled and semi 9 Production Process, Maintenance, skilled stores, Safety.& Un skilled workers Total 15

3.0 Project Description

M/s. Veer- Chemie & Aromatics (P) Limited proposes expansion of existing bulk drug and intermediate manufacturing at Plot No; A-4, Co-op Ind. Estate, Balanagar, Hyderabad, Telangana State. The present expansion proposal is to produce bulk drug and Intermediates of 375.00 Tonns/Month

The Location map is shown at Figure -3.1 and Google earth map showing M/s. Veer- Chemie & Aromatics (P) Limited is shown at Figure -3.2.

The site central coordinates are

Latitude: 17°27'51.24"N

Longitude: 78°26'47.09"E

There are no archaeological, historical sites located nearby. Therefore, the project site does not offer any negative impact on the local area, but rather has a positive impact on socio economic conditions of the habitants around it. The unit is 1.5 Kms away from National Highway 9 (Hyderabad – Solapur Road (Mumbai Highway)) and 3.1 Kms from Railway Station at Begumpet.

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FIGURE 1.1: LOCATION MAP

M/s. Veer- Chemie & Aromatics (P) Limited Plot No; A-4, Co-op Ind. Estate, Balanagar, Hyderabad, Telangana State

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FIGURE 1.2: GOOGLE EARTH MAP SHOWING M/S. VEER- CHEMIE & AROMATICS (P) LIMITED

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3.1 Products and Production Capacity M/s. Veer- Chemie & Aromatics Private Limited is proposing to produce below mentioned products and the list of existing and proposed products are shown in Table3.1 & Table 3.2. Table3.1: Existing Products and Quantities

S. No Product Name Quantity In Quantity In Kg/Month Kg/Day 1 Niacinamide 25000.00 833.33 2 Niacin & its derivatives 25000.00 833.33 3 Isoniazid 6000.00 200.00 56000.00 1866.67

Table3.2: Proposed Products and Quantities

S. Quantity In Quantity In Product Name No MT/Month MT/Day Group-A 1 Isonicotinic acid 325.00 10.83 2 Nicotinic acid 325.00 10.83 3 Niacinamide 325.00 10.83 Total (Sum of any one or all products 325.00 10.83 Group-B 1 Benzyl Nicotinate 50.00 1.67 2 Ethyl Isonicotinate 50.00 1.67 3 Ethyl Nicotinate 50.00 1.67 4 Hexyl Nicotinate 50.00 1.67 5 Methyl Isonicotinic acid 50.00 1.67 6 Methyl Nicotinate 50.00 1.67 7 Methyl-6-Methyl Nicotinate 50.00 1.67 8 Myristyl nicotinate 50.00 1.67 Total (Sum of any one or all products 50.00 1.67 Total Sum of (Group-A + Group-B) 375.00 12.50

3.2 Raw materials required and Quantities

All the raw materials required for manufacturing of above products will be sourced from local market. The products wise required raw materials and quantities are enclosed in the annexure.

3.3 Manufacturing Process

The manufacturing process of bulk drugs consists of chemical synthesis extending to stages of processing involving different type of chemical reactions. The

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PRE FEASIBILITY REPORT generalized Flow chart for bulk drug manufacturing is shown in Flow chart 3.1.

FLOW CHART 3.1: GENERALIZED FLOW CHART FOR MANUFACTURING OF DRUG

3.4 Resource – Utilize & Recycling 3.4.1 Water Water requirement of the project for domestic and industrial activity during operation phase will be 147.55 KLD. The water requirement will be met through ground water. The detailed water requirement shown in below Table3.3. Table 3.3: WATER REQUIREMENT DETAILS

S. No. Purpose Water Input In KLD Process & washings (50.5 KLD) +DM 1 55.55 water Regeneration(5.05KLD) 2 Boiler make up 12.00 3 Cooling tower make up 64.00 4 Domestic 5.00 5 Scrubbing system 6.00 6 Gardening 5.00 Total 147.55

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3.4.2 Power Requirement

Power requirement of proposed project will be made available through SPDCL. The total power requirement will be 600 KVA for proposed unit. In addition to the existing 125 KVA DG Set & 62.5 KVA DG Set, Additionally 200 KVA DG Set will be installed to meet the emergency power requirement of the plant.

3.4.3 Fuel Requirement

M/s. Veer- Chemie & Aromatics (P) Limited will continue the Existing 2 TPH Coal fired boilers and 2 Lac. K.Cals/Hr Thermic Fluid Heater. Total fuel requirement will be around 5.43 TPD. Coal is procured form local sources.

3.5 Quantity of wastes to be generated 3.5.1 Waste Water Generation and utilization Total effluent generated in the project is 102.36 KLD. The process waste water from Process, floor Washes, scrubbers, QC and R&D are evaporated in MEE with stripper and ATFD after neutralization. The condensate from MEE and ATFD will be collected and treated in effluents treatment plant along with effluents from utilities followed by RO. RO rejects will be send back to MEE and RO Permeate will be re- used back. To treat the sewage generated due to domestic activities will be disposed through septic tank following by soak pit. Table3.4: Wastewater generation and Treatment Method S. Purpose HTDS LTDS Effluent Disposal Method No In KLD In KLD In KLD Process & Washings HTDS Effluent sent 1 (72.31 )+ DM water 22.94 54.42 77.36 to ETP with MEE Regeneration (5.05) system. 2 Boiler Blow down 2.00 0.00 2.00 LTDS effluents Cooling towers Blow treated in ETP-RO 3 13.00 0.00 13.00 down Rejects to MEE Scrubbing system system and RO permeate to reuse, Condensate from 4 6.00 0.00 6.00 MEE to reuse and MEE residue to AFTD. Domestic Septic tank followed 5 0.00 4.00 4.00 by Soak pit Total 43.94 58.42 102.36

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3.5.2Solid waste generation and Disposal The types of Hazardous and non Hazardous wastes generated from the project, method of disposal is shown in below table3.5. Table 3.5: Solid waste & Hazardous Waste Generation and Disposal S. Description Quantity Method Of Disposal No In Kg/Day Solid waste 1 Organic Solid Waste 6306.00 Sent to Cement Industries 2 Inorganic solid waste 12257.00 Sent to TSDF 3 Spent Carbon 98.00 Sent to Cement Industries 4 ETP Sludge 200.00 Sent to TSDF 5 MEE salts 2872.00 Sent to TSDF 6 Solvent distillation Residue 204.00 Sent to Cement Industries Hazardous Waste 1 Waste Oils & Grease 1000 SPPCB Authorized Agencies Ltrs/Annum for Reprocessing/Recycling 2 Detoxified Containers After Detoxification sent back 500No’s/Month to suppliers/SPPCB Authorized Parties 3 Used Lead Acid Batteries Send back to suppliers for 10No’s/Year buyback of New Batteries

3.6 Schematic representations of the feasibility drawing which give information of EIA purpose. The applicability of the S.O 1533 for the proposed project was explored by considering different possibilities & provision made in the said notification. Considering the products & project location of the proposed project it is noticed that the proposed project falls under Category 5 (f) “B” of the Schedule-I of EIA Notification SO 1533. Due to the absence of State level EAC & EIAA, we are applying at MoEF &CC, New Delhi As per the provision of the SO 1533, it is necessary to get Environmental Clearance by applying to MoEF along with the Environmental Impacts Assessment Study Report for the proposed project prior to commissioning of the project activities. Therefore the EIA is required to conduct to comply with provisions of SO 1533 made for Category 5(f) “B” of schedule –I of the notification.

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4.0Site Analysis

4.1 Connectivity M/s. Veer- Chemie & Aromatics (P) Limited. Plot No; A-4, Co-op Ind. Estate, Balanagar, Hyderabad, Telangana State  The nearest railway station is Begumpet Railway Station at a distance of 3.1 KMs from the site.  The nearest airport is Rajiv Gandhi International Airport at a distance of 26.0 KMs  The Nearest road ways National Highway No.9 – 1.5 Meters

4.2 Land Form, Land use and Land ownership. The unit is located near industrial area. The Current land use of the land is industrial land.

4.3 Existing Infrastructure.

The unit is located in industrial area and the basic infrastructure is already there. The plant well connected with Road and Railway facilities

4.4 Soil classification

The district is mainly covered by two types of soils i.e Red soils and Black soils.

4.5 Climatic data from secondary sources.

Temperature Maximum: 44.4o C Minimum: 6.9 o C Normal annual rainfall 873 mm 4.6 Social Infrastructure available.

Well developed social infrastructure facilities are available at nearby Habitations.

5.0 Planning Brief

Proposed plant activities will be started after getting statutory clearance form related authorities. The project will be completed within two years. Further proposed expansion activities will take care of all the rules and regulation of statutory authority and provide the control measure and devices to achieve the

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6.0 Proposed Infrastructure

6.1 Industrial Area

The infrastructure and other facilities are already well developed and it is also located near to industrial area.

6.2 Residential Area

The Accommodation facilities are there very near to the unit. The unit is very near to the Hyderabad.

6.3 Green Belt:

Approximately 20 % of Green Belt will be developed and it will be maintained.

6.4 Social Infrastructure:

Facilities like road and communication are good. Banks, ATM's and medical facilities are also adequate.

Amenities:

Education- schools including middle, secondary and higher secondary schools, social welfare hostels.

Medical and Health- Community Health Centre, & Primary Health center Are available near town

Power and water- All the villages are electrified and drinking water facilities are extended to all villages.

Rail and Road- The project site is very well connected by road through National Highway no. 9, Southern railways.

6.5 Water management

Water requirement will be met through IDA supply .

6.6 Sewerage System:

There will be no discharge of industrial effluent (Zero Liquid Discharge). The treated

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PRE FEASIBILITY REPORT effluent will be reused. Domestic waste water will be disposed off through soak pit system.

6.7 Industrial Waste Management: Due to proposed expansion, the effluent from cooling and Plant/Equipment washing will be generated and treated in the well designed Effluent Treatment Plant. The treated effluent will be reused.

7.0 Rehabilitation and Resettlement (R & R) Plan

Rehabilitation & Resettlement (R&R) plan is not applicable to the unit.

8.0 Project Schedule & Cost Estimates

Proposed expansion activities will be started after getting statutory clearance form related authorities. The project will be completed within two years. Proposed activity will provide benefits to the local people in terms of financial and social welfare. The project cost for expansion of the unit is 1.00 Crores will be used for constructing additional building, Equipments, Machinery and ZLD system.

9.0 Analysis of proposal (Final Recommendations)

 Local people will get direct financial benefit by way of employment.  Local people will get some contracts of supply and services to get indirect income.  Company will contribute in improving education and health facilities in nearby area

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