Alpine Woodtech Pvt. Ltd. (Awpl)
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SBI/ UMRETH BR. / AWPL SECTION-A EXECUTIVE SUMMARY CIRCLE/SBU: AHMEDABAD BRANCH: UMRETH COMPANY: ALPINE WOODTECH PVT. LTD. (AWPL) Section Contents Pages 1 Borrower profile a. Name , Address, Manufacturing activity/Locations, Date of 2 incorporation, Banking arrangement etc of b. Brief Background(Company/ Group/ Promoters/ Management 2-4 including shareholding pattern ) c. Brief write up on Industry/Sector and Company’s standing 5-7 d. RMD Advisory/qualitative approach/Quantitative approach/Comments 7 e. Indebtedness/Exposure & capital charge 7 2 Present Proposal a. Proposal : For sanction/approval/confirmation 8 b. Credit limits (existing and proposed) 8 c. Sharing pattern 8 3 Performance Details a. Performance and Financial indicators 9 b. Industry exposure as on 9 c. Movement in TNW 10 d. Synopsis of balance sheet 10 4 Risk assessment : a. Credit Rating 11 b. Risk and mitigating factors 11 c. Warning signals/Major irregularities in Inspection Audit/Credit Audit/Other Reports 12 d. Security 12 e. Changes in Security if any, justification 13 5 Pricing a. Conduct of account 14 b. Income analysis 14 c. Other Bank’s/ FIs pricing 14 d. Proposed pricing 15 6 Loan Policy : Deviations & Compliance: a. Whether names of promoters, directors, company, group concern figure in defaulters/willful defaulters list 16 b. Deviation in Loan policy 16 c. Deviation in Take over norms and comments 16 d. Directors of Borrowers company: status of relation with Board/ Sr. Official of the bank etc 17 7 a. Future plans & Business Potential including cross selling/retail marketing 18 b. Environmental and sustainability implications 18 c. Earlier terms of Sanction: Compliance status 18 d. Statutory dues /Contingent Liabilities 18 8 a. Justification for the Proposal & b. Recommendations : 19 Page 1 of 37 SBI/ UMRETH BR. / AWPL SECTION: 1 (Rs. in lacs) Circle/SBU: Ahmedabad Branch : Umreth Borrower’s Profile: Company: Alpine Woodtech Pvt. Ltd. (AWPL) Address : Regd Office: 138, Ashapurana Nagar, Opp. DPS, Pal Road, Jodhpur-342001, Rajsthan, India. Mfg facility( Locations): R. S. No.1566/2, Hamidpura, Navapura Road, Umreth, Ta.- Umreth, Dist.- Anand. (Gujarat) Ph.-(02692) 654175/ 292310 Segment: SSI Constitution: Private IRAC Status----New Connection---- Limited Company Advances: ----NA----- Investments:----NA----- Industry: Forest Products Industry. Activity: Chemically treatment and seasoning of various types wood. Date of incorporation: 05th May 2008. Banking with us since: New Connection. Banking arrangement: New Company/ New Connection. Existing Connection: No. New unit : Yes If Take over, whether all norms complied with: Not Applicable. b) Brief Background: M/s Alpine Woodtech Pvt. Ltd. (AWPL): AWPL incorporated on 05th May 2008 has been registered with ROC, Jaipur, vide registration no. is U20299RJ2008PTC026489 of 2008-09. AWPL has proposal to start a new seasoned wood manufacturing unit at R. S. No.-1566/2, Hamidpura, Navapura Road, At - Umreth, Dist.- Anand (Gujarat) with a view to explore new markets of Mumbai and southern part of India and also for taking raw material location advantage which helps them in reduction of transportation cost. AWPL has been registered with DIC, Anand as manufacturing Industry on 29.09.2008 and has been allotted SME No. “24-015-12-0067” on 29.09.2008. The company has also got its name registered with Central Sales Tax No.- “24650400659” and under Gujarat Value Added Tax Act, 2003 No.-“24150400659” dated: 11.09.2008. AWPL has also submitted an application to Gujarat Pollution Control Board (GPCB) for obtaining NOC, which should be submitted by them immediately after obtaining the same. Directors of AWPL: AWPL has two directors, Shri Rakeshkumar D. Saini and Shri Sanjaykumar V. Rana. Both are postgraduates in wood technology from Forest Research Institute, Dehradun. By virtue of their education relevant to the activity and association with M/s Shri Laxmi Associates since 2002 they are technically and managerially competent to run the activity on profitable lines. Details of their education qualification, Shareholding pattern, experiences and other information are as under: Name of Share Education Qualification/ Experience/ Other Role in the unit Page 2 of 37 SBI/ UMRETH BR. / AWPL Directors Holding details (Age) Pattern (%) Shri 50% • “M. Sc. in Wood Science & Overall administration, Rakeshkumar Technology” from Forest Research management, public D. Saini (32) Institute, Dehardhun (1998-2000). relation, purchase of • Worked as a wood technologist in raw material, sales, Suncity Art Export, Jodhpur for a period finance and technical of 2 years. support in production. • Has about 6 years of experience in this line of activity, as a partner in M/s Shri Laxmi Associates since 2002. • Belongs to U.P. : “S/o Dharampal Saini, H. No.-438, Nai Bastti, Bhudhana, Mujjafar Nagar, Uttar Pradesh.” • Present Address: “ 138, Ashapurna Nagar Opp. D.P.S., Pal Road, Jodhpur. Shri 50% • “M. Sc. in Wood Science & Finance, sales & Sanjaykumar Technology” from Forest Research marketing, overall V. Rana (33) Institute, Dehardhun (1998-2000). management of the • Worked as a wood technologist firm and technical (quality control) in Saraswati Art Palace support in production. Pvt. Ltd., Jodhpur for a period of 2 years. • Has experience of about 6 years in this line of activity, as a partner in M/s Shri Laxmi Associates since 2002. • Belongs to U.P.: “ S/o Virendra Rana, H.No.- A- 179, Dev-Vyaspuri , Opp. Subharthi Dental College, By-pass road, Meruth U.P. • Present Address: “ 138, Ashapurna Nagar Opp. D.P.S., Pal Road, Jodhpur. Details of associates firm & their borrowing arrangement have been furnished in Annexure-I. Product: The proposed unit is set up for manufacturing seasoned wood, which involves two independent processes vide (1) Chemical treatment for protecting from pest and (2) Seasoning (de-moisturisation). The wood treated as above would be highly durable and has wide application in furniture making, interior, infrastructure and handicrafts industries. Gajjar Techno-Economic Consultants Pvt Ltd have confirmed that the product and production process is feasible. Capacity and Capacity utilization: Page 3 of 37 SBI/ UMRETH BR. / AWPL The capacity of the project is based on the capacity of chemical treatment plant and seasoning plant. The capacities of both the plants are furnished in the table given below CHEMICAL SEASONING TREATMENT ACTIVITY Number of Tanks / Chambers 2 4 Number of trolleys per chamber -- 4 Capacity per tank/chamber per batch 200 cu ft 400 cu ft Batch time 3 hours 7-9 days No. of days per annum 300 days 300 days No. of Batches 37 Total Capacity per annum 960000 cu ft 236800 cu ft (24 hours a day) Capacity of Chemical treatment plant 320000 cu ft --- (8 hours a day) Capacity of chemical treatment plant and seasoning chamber are synchronized and capacity of seasoning activity being least capacity of the unit is presumed conservatively as 240000 cu ft. per annum. The economics has been worked out presuming an operating capacity of 180000 cu ft per annum. Gajjar Techno-Economic Consultants Pvt Ltd, Baroda who was entrusted with feasibility study has opined that the capacity of the unit at 240000 cu ft per annum is reasonable. DIC, ANAND IN ACKNOWLEDGEMENT FOR PART-I (FROM-67) HAS MENTIONED CAPACITY OF MANUFACTURE AS 180000 CU FT, WHICH NEEDS TO BE CLARIFIED BY THE UNIT. Product USP/ Marketing: The market for processed wood i.e. chemically treated and seasonal wood is ever increasing since such product enhances the life of the wood by 4 to 5 times than its normal life. Because insects do not survive after chemicals treatment and also due to seasoning of wood its moisture gets evaporated which ensure longevity of the furniture made out of processed wood in comparison with the unprocessed wood. In view of the following the unit would not have any hindrances in marketing and selling of the product. The promoters are basically technocrats backed by experience in the similar activity. Their associate concern M/s Laxmi Associates located at Jodhpur needs about 50000 cu ft / annum for their consumption. Focused attention by one of the promoters Sh Sanjaykumar V Rana to sales and marketing would help the unit in exploring new markets in India and abroad. The unit having already established contacts with potential customers located in Gujarat, UP, Haryana, Rajasthan etc., would meet their ever-increasing demand. Page 4 of 37 SBI/ UMRETH BR. / AWPL The quality of the product is the USP because the product is far superior to unseasoned wood and there is no unit carrying on similar activity in and around. Therefore the unit would not have any barriers in marketing of the product. The unit would be having orders on on going basis from their existing connections to the tune of about 35000 – 40000 cu ft per month. Gajjar Techno-Economic Consultants Pvt Ltd, Baroda who have assessed market feasibility have opined that the product is having wide applicability and the unit could achieve projected sales. c) Brief write-up on industry/sector and company’s standing (domestic/ international) in the industry including market share, future growth strategies, comments on recent news reports, etc. Forests cover roughly 20% of India’s total geographical area and forestry is the second biggest land-use in India after agriculture Estimates suggest that the demand for timber in India is likely to triple almost from 58 million cubic meters in 2005 to 153 million cubic meters in 2020, and that the supply of wood will more than double from 29 million cubic meters in 2000 to 60 million cubic meters in 2020. India is one of the major wood-users in the Asia pacific region. India has over 4500 varieties of wood-yielding species Most of the timber currently used in India comes from plantations but, as demand outstrips supply, India’s natural forests will come under threat. Timber Sources 1) Imports 2.