1 Whitefield Paper Mills Limited SEZ-based Paper Mill Project ProposalPrivate & Confidential Whitefield Paper Mills Limited SEZ-based Paper Mill Project Proposal JANUARY 2017
2 The Project Concept • of • – De-inking plant •State of the art manufacturing facility to produce 210,000 TPA paper through eco-friendly processes. Support facilities • of • – De-inking plant 80-MW captive thermal power generating plant Zero-discharge effluent treatment plant • Proposed in a Government approved Sector-Specific Special Economic Zone (SSEZ) Single largest paper machine in India, producing consistent quality of paper meeting International standards. Exports to South Asian, Middle East and African countries. We are creating employment for about 5000 person direct and 15000 persons indirect apart from the above employment will be benefitting the overall development of the region and villages surrounding plant with territory employment in all the dependent sectors. Management considers development of the region as one • • Private & Confidential of its primary goals
3 The Project Concept We are creating employment for about 1000 person direct and 5000 persons indirect apart from the above employment, will be benefitting the overall development of the region and villages surrounding plant with territory employment in all the dependent sectors. Management considers development of the region as one of its primary goals We are adopting Totally Chlorine Free (TCF) bleaching process resulting in an environment friendly manufacturing process. Our Manufacturing process adopts a near zero pollution process wherein the water, air nill. This is going to be the first paper industry. • • Private & Confidential
4 Industry Overview • Paper remains an essential ingredient of homes, factories, offices and schools even in this “paperless” world. By one estimate, personal computers alone account for 115 billion sheets of paper per year worldwide. Long term trend is ever upwards as the demand continues to grow. Unlike in other mature commodity sectors, paper consumption shows little sign of decoupling from economic growth. In the developing world average per capita consumption is ~15 kilograms per year, while the minimum level to meet basic needs for communication and literacy is ~30 to 40 kilograms. The biggest increase is expected to occur in developing countries in Asia. • • • • Private & Confidential
5 SEZ Advantages • Treated as foreign territory for trade operations involving substantial duty and tariff benefits No license required to import goods Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc. Exemption from Central Excise duty on procurement of capital goods, raw materials, consumables spares etc. from domestic market Reimbursement of Central Sales Tax if paid on domestic purchases Income-tax exemption for 15 years. No service-tax on services rendered and received No dividend payment tax • • • • Supplies from Domestic Tariff Area (DTA) to SEZ treated a s exports Private & Confidential
6 Location Advantages • •Project is situated in Bayyavarm in WG Dist of AP. Proximity to State & National Highways, Railway Station, Port and Airport • – Major Town & Railway Station: Kovvur 25 Km Ports: Kakinada 110 Kms and Vizag 250 Km Airport: Rajahmundry 40 Km, Vizag 250 Km and Vijayawada 150 Km. • 132 KV power available within 5 Km (facilitating construction and plant start-up) Availability of water from River Godavari within 5 Km Located near Coal Mines Proximity to natural gas pipeline – 8 Km away for future link Availability of trained manpower • Plant is located in industrial backward area and all setting up the unit in backward area will accrue to Govt. of AP and Govt. of India benefits for us from Private & Confidential
7 Project Cost & Funding Requirements SL.NO. Particulars Amount 1Land & Site Development 6.84 2 Building & Civil Works 28.31 3 Plant & Machinery 196.07 4 Engineering services 34.68 5 Misc fixed assets 26.59 6 Contingency 29.25 Total Hard Cost 321.73 7 Interest During Construction - 8 Preliminary & Issue expenses 7.69 9 Pre-operative expenses 4.83 10 Working Capital 28.74 Total Soft Cost 41.25 Total Project Cost 362.99 Private & Confidential
8 Project Support • Poyry Consulting Group, Singapore - Carried out the project techno-economic feasibility study and submitted viability report SPB-PC - Assist Poyry with focus on domestic expertise on mill site, cost levels, etc. SBI Capital Market Pvt Ltd, India - Appraised the project as financially viable Tata Consulting Engineers - Project Consultancy including 'Detailed Engineering & Project Management‘ Ramky Environmental Consultants - Environmental Consultancy • • • • Private & Confidential
9 Raw Materials • Key raw materials: Wood Pulp and Waste Paper & Coal which is used in the process of generating steam in the Power Plant. Virgin Wood Pulp and Recycled Waste Paper • – Has signed agreement with Elof Hansson AB, Sweden for supply of pulp and waste papers. Planning to procure waste paper from USA and Europe. Domestic waste paper recovery will also be developed to supplement imports. – • Fuel – Applied to Ministry of Coal, Government of India for coal allocation and has tied-up with an international trading company for sourcing coal from Indonesia. Applied for 0.5 mmscmd of natural gas to Ministry of Petroleum and Natural Gas – Private & Confidential
10 Technology • Paper MachinePAPCEL,Czech Republic Company, pioneers and leading suppliers of process equipment and systems with over six decades of experience in the field of Pulp & Paper industry. Recently won the prestigious award “Exporter of the Year” in the category “ the Best export transaction supported by the State”. The Award was presented by Czech Export Bank. The Group also recently acquired ABK, France to expand the product portfolio and market space. • Paper Machine – – – Proposal for a single machine with 200 thousand tonnes per year capacity to ensure consistency in the quality of entire Output. • Private & Confidential
11 EPC Contract • Signed EPC cum Funding agreement for total projectexecution on Turnkey basis with M/s PAPCEL,Czech Republic PAPCEL is capable of providing innovative Engineering Solutions from ‘Concept to Commissioning’ The Group is richly experienced in execution of large EPC projects across various parts of the globe. Received project collaboration offer from India’s Reputed Brand ITC • • • Private & Confidential
12 Marketing & Sales Paper • Export Market • Deemed Exports •– Elof-Hansson AB, Sweden for selling 60% of the finished production • Deemed Exports – Sell 20% of its finished products as deemed exports • Users consuming paper located in notified SEZ, 100% Export Oriented Units, and Buyers paying in foreign currency. – Sell directly to publishing houses, stationary product units in SEZs etc in India through in-house expertise and contracts. • Domestic Market – Sell 20% of its finished products in domestic market through 5- 10 dealers in selected centers. Private & Confidential
13 Marketing & Sales (contd…)Surplus Power • Entered into a Power Purchase Agreement with Power Trading Corporation for sale of up to 40 MW for 25 years. Private & Confidential
14 Present Status S.No. Activity Status 11st Phase Acquisition of 271 Acres of Land Completed 2 Land development acres of Land Filling & Leveling 3 Two Water Reservoirs of capacity 40 MGD 4 Construction of Power- Service lines up to Project site 5 Construction of Water- Pipelines from River Godavari to Project site 6 Site Office, Workmen Mess and Hostel Accommodation at Project Site 7 Project Feasibility Study by Poyry, Australia an authority in global forestry industry 8 Project Appraisal by SBI Caps, India 9 Agreement with Elof-Hansson, Sweden for supply of Primary & Secondary Fiber 10 Agreement with Elof-Hansson, Sweden for Marketing up to 60% of the finished product 11 Appointment of Tata Consulting Engineers (TCE) for Detailed Engineering and Project Management Services. 12 Finalization of Machine Specifications with World leading Machinery Suppliers, Papcel , Czech Republic 13 Environmental Study by Ramky and Pollution Control Boards’ approvals by Government of India
15 Current Status • 300 acres is paid for & possessed movement • • • •Site leveling and filling work on acres completed. Site office, Workmen Mess/Hostels built; additional facilities under construction. Temporary approach road constructed for heavy vehicular movement Two offices in Kovvur and Hyderabad established and required people already employed. Temporary power connection taken for construction work. Permission received for drawing 26 MGD of water from Godavari River and laying of the pipeline for pumping of the water from Godavari River is completed. Natural Water Reservoir built for facilitating construction. Private & Confidential • • • •
16 Promoters Mr T Srinivasa Rao & Associates • – Worked with a prominent South Indian business group, as Director- Business Development More than two decade of experience in Infrastructure and Power sector. – Private & Confidential
17 Management A strong professional team of senior personnel with cumulative experience of more than 200 man-years of experience in key-management positions with large paper companies in India and abroad: • – Mr. V. Chakrapani (President Technical) a Chemical Engineer with over 40 years of multi faceted experience in the paper industry Mr K S P Rao ( President Marketing) has over two decades of experience in Forestry, Pulp & Paper Industry. His experience includes developing export markets across the globe. Mr. S L Narasimham(Sr.VP –Power Plant) has over 40 years of experience in the Paper and Power Industry and is a qualified power systems engineer with extensive experience in Operating Paper and Power Projects – – Private & Confidential
18 Management (contd…) – Mr. B. Subramanian (VP – Engineering) a Mechanical Engineer and Pulp & Paper Technologist with more than 32 years of experience in the engineering & planning areas including automation. He London. is an ISO Auditor from DCS International, Private & Confidential
19 Strategic Advisors • Mr V G K Murthy, Advisor (Paper) - a Chemical Engineer with 37 years of experience in the paper Industry, more than half of which is at a senior level, at one of the largest plants in Indonesia, the industry leader in Asia. He is presently running a consultancy firm specially for Paper Industry rendering a wide range of services to large players in the market. His services have also been retained to optimize the costs- benefits during the Project implementation stages as well. • Mr Kamala Kumar, Advisor (Power) - is a retired Chief Engineer, Generation, APSEB. He was associated with TATA Consulting Engineers and EPDC (Owners Engineers) for Techno-Commercial aspects of a 2X260MW Coal-fired Thermal Power Station in Andhra Pradesh. His experience in the operation, maintenance and erection coal based stations will be extremely beneficial. Private & Confidential
20 Private & Confidentia Registered Office:# , Sri Hanuman Nilayam, Beside RDO office, Main Road, KOVVUR West Godavari District, AP, INDIA Ph Nos: / Mobile No: , l