SAGAR CEMENTS LIMITED Plot No
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FEASIBILITY REPORT FOR SETTING UP 2.00 MTPA CLINKER, 1.70 MTPA OF CEMENT PLANT (UNIT – III) & 2 x 18 MW CPP (NEW) Mattampally Village, Mattampally Mandal, Suryapet District, Telangana State. MARCH 2017 SAGAR CEMENTS LIMITED Plot No. 111, Road No.10, Jubilee Hills, Hyderabad – 500033, Telangana state. CONTENTS Chapter No Title 1 Project at a Glance 2 Summary 3 Introduction 4 Raw Materials and Fuels 5 Process Description 6 Market and Demand 7 Plant Location and Infrastructure 8 Project Implementation 9 Project Financials 10 Means of Finance 11 Project Schedule & Cost Estimates 12 Human Resources 13 Progress Achieved 1.0 PROJECT AT A GLANCE CONTENTS BRIEF DESCRIPTION Proposed Capacity of Cement New Units • 2.0 MTPA Clinker / 1.7 MTPA Cement Clinker : 6000 TPD Cement : 5000 TPD • 2 X 18 MW coal based Captive Power Plant Types of cements proposed [1] Ordinary Portland Cement, 53 grade to be manufactured and its relevant Conforming to IS: 12269-1987 (50%) Indian standards specification [2] Portland Pozzolona Cement, Conforming to IS:1489-1991 (50%) Location of the Plant Mattampally Village & Mandal, Suryapet District, Telangana State Plant Land The existing cement plant is located in an area of 61 Ha. An additional area of 25.0 Ha which is own land of SCL will be utilized for expansion i.e for new Unit – III and 2 X 36 18 MW CPP. The total area of the cement plant after expansion will be 86 Ha which falling under Survey No. 433, 434 & 435, Mattampally Village & Mandal, Suryapet (D), Telangana State. Promoters S. Veera Reddy, Managing Director Dr. S. Anand Reddy, Jt. Managing Director S. Sreekanth Reddy, Executive Director Main raw material Limestone - 94 to 95 % used for manufacture of Clinker Aluminous Laterite - 5 to 6 % Iron Ore - 0 to 1 % Coal- 13to 18% Raw materials used for manufacture of (95% clinker + 5% Gypsum) in OPC Ordinary Portland Cement (OPC) and (60–65% clinker + 5% gypsum + Portland Pozzolona Cement (PPC) 30–35% Fly ash ) in PPC Limestone Deposits New mine Government of Andhra Pradesh, Industries and Commerce (Mines – 1) Department, has Granted Prospecting Licence for limestone over an extent of 794.820 Ha in compartment No. 11 and 12 (P) of Sultanpur reserved forest in revenue Sy.No.540 B of Pedaveedu Village and in Sy.No.4 of Gundlapally Village, Mattampally Mandal, Nalgonda District of Andhra Pradesh. Out of which 400 Ha area is being processed for Forest Diversion. Additives to be used A. Aluminous Laterite: Location Rajahmundry Quality (Avg. in %) Fe2O3 - 20.40 SiO2 - 33.20 Al2O3 - 21.51 B. Iron ore Location Bellary Quality (Avg. in %) Fe2O3 - 44.00 Al2O3 - 25.00 Additives to clinker Conversion 0.05 Factor Raw Mix to Clinker Conversion Factor 1. With SCCL Coal 1.45 2. With Imported Coal 1.50 Fly Ash Quality Conforms to B.I.S ; 3812- 1981 Quantity Available at from Power plants of VTPS, KTPS, NTPC . Coal Singareni Collieries Company LTD and Location Imported coal from South Africa / Indonesia Quality Singareni Coal Imported Coal Total Moisture % 6.00 6.0 Calorific Value kcal/kg 4300 6500 Ash % 30.0 14.0 Volatile Matter % 28.0 26.0 Sulphur % 0.50 0.72 Specific Fuel Consumption of Clinker in Kcal / kg 700 Gypsum Location Coromandel Fertilizers, Vizag,. Quality Purity % More than 80 SO3 % More than 35 Power: 132 kV supply. Estimated Requirement of connected load 50 MW in MW Specific power consumption in kwh / tonne Clinker 55 Cement (semi finish grinding) 26 Cement (close circuit grinding) 35 Total power consumption in Kwh per tonne of OPC 90.00 PPC 72.00 Cost of power in Rs. Per Kwh from APSEB Rs. 5.85 / KWhr. at present rate Grid Water: Qty of water needed Additional 1000 cu.m/day (present is 1300 m3/day Land required Present 61 Ha will be increase to 86 Ha 280000 Plant buildings/roads 50000 Parking area 290000 Greenbelt area Residential colony 60000 Area in between the facilities/future 180000 development 860000 or 86 Ha Total (own lands of SCL) Land required for 36 MW (18 MW x2) 50000 Sq.M (own land of SCL) Man Power requirement (in Nos.) Skilled 50 Semi Skilled 75 Un-Skilled 125 Total : 250 Direct and 200 Indirect Implementation period 24 months from the date of Placement of orders Targeted Markets Area of operation :Telangana, Karnataka, Andhra Pradesh, Maharashtra,Odisha and Goa. Core markets: North Karnataka, Telangana, adjacent districts of Maharashtra &Odisha Secondary markets: South Karnataka, Rayalaseema of AP, few dists. of Western Maharashtra Suppliers of Plant and Machinery • FLSmidth Private Limited • Loesche, Delhi • GEBR Pfeiffer SE, Germany • KHD Humboldt, Germany Estimated cost of the project 1000 (Rs. Crores) Equity 400 (Rs. Crores) – 40% Term Loan 600 (Rs. Crores) – 60% Payback period & Moratorium 6 years & 30 months Financial Projections: Selling Price (Ex-works) Rs. 330 / bag OPC Rs. 320 / bag PPC [1] BEP, 3RD Year 47.00 % [2]Return on total investment 18% PROJECT COST BREAK UP OF FINANCE Rs. In Crores PROJECT COST BREAK UP OF FINANACE Total Bank Finance PM cont Land and Site Development 0 40 0 Plant & Machinery 571 428 143 (Incl. Captive Power Plant) Civil Works 239 122 117 Misc. Fixed Assets 6 5 1 Engg. / Know-how / Training 3 2 1 Deposits 32 0 32 Pre-operative Expenses (incl. Int.) 131 0 131 Working Capital - Margin Money 13 0 13 Provision for Contingencies 5 3 2 TOTAL 1000 600 400 2.0 SUMMARY • SAGAR CEMENTS LTD (SCL), is operating a Cement Plant with Clinker production capacity of 2.0 Million Tonnes Per Annum (MTPA), Cement production capacity of 2.35 MTPA and 7 MW Waste Heat Recovery Based Captive Power Plant (WHRB CPP) • SCL was promoted by technocrat entrepreneurs and had the previous experience of running a cement plant for more than 30 years in the same area earlier and have the experienced Directors/Professionals on its Board to set up a cement plant of 2.35 to 5.0 MTPA cement plant and set up a State of the Art Technology within the stipulated time. • SCL now proposes to increase production capacity of the cement plant by increasing Clinker production capacity from 2.0 to 4.81 MTPA by modernization of existing Unit I & II and installation of New unit i.e. Unit III of 2.0 MTPA clinker capacity. Cement production capacity of the plant will be enhanced from 2.35 to 5.0 MTPA. Power requirement of the Cement is presently met from existing 7 MW Waste Heat Recovery Based Power plant and Grid. To support cement plant and as part of expansion SCL proposes to increase power generation capacity from 7 to 58 MW by installing 2 X 18 MW Coal Based Power Plant along with 15 MW Waste Heat Recovery Based Power Plant (WHRB PP). • Prospecting license was granted for mine spread over an area of 400 Ha which is Forest land at Compartment No. 11 (P) and 12 (P) of Sultanpur Reserve Forest in Revenue Sy.No.540 B of Pedaveedu Village, Mattampally Mandal, Nalgonda District, Telangana State. Subject mine being Forest land, SCL has initiated the process of obtaining Forest clearance and the mine lease will be granted after obtaining the forest clearance. The subject limestone mine is a captive mine of SCL Cement plant located at 2.4 km distance. The mine has about 236.407 Million Tonnes of mineable reserves (approx.) which will last for about 95 years with proposed production capacity of 2.5 Million Tonnes Per Annum (MTPA). 3.0 INTRODUCTION Sagar Cements is a prominent player in the field of cement in Andhra Pradesh for over 3 decades adopting progressive manufacturing practices, whether it relates to maintaining high standards of quality of its products or development of its highly valued human resources or the need to keep the pollution to the barest minimum. ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 certified Company. The Company manufactures various varieties of cement like Ordinary Portland Cement (OPC) of 53 grade, 43 grade, Portland Pozzalona Cement (PPC) and Sulphate Resistant Cement (SRC) to suit different needs of customers and all these products are being sold under the Brand Name “Sagar” which has already become popular in Andhra Pradesh, has now found its acceptance among the customers in the neighboring States as well. The Company employs modern technology in each of its process of manufacture at its Plant and has adopted progressive manufacturing practices, whether it relates to maintaining high standards of quality of its products or development of its highly valued human resources or the need to keep the pollution to the barest minimum. The Company has a strong committed marketing network comprising various layers like Distributors, Dealers, C&F Agents, all of whom are served by dedicated marketing personnel. The Company has a well-designed Organizational Structure and the roles and responsibilities of each of its personnel have been well defined. The Company believes in the importance of development of Human Resources as a valuable asset and is endeavoring to enhance its value by organizing various need based in-house training programmes and encouraging their participation in the external programmes sponsored by various institutions of repute. Sagar Cements has a consistent Profit track record and, except for a few years when it was either executing its expansion plans or the industry as a whole was undergoing a difficult period, it has been declaring dividend at reasonable percentages. The company’s Shares are listed on National Stock Exchange of India and Bombay Stock Exchange, where they are actively traded. Sagar is well diversified group serving various sectors of the economy.