DPR for setting up of Common Facility Centre for

_________________________________________
under MSE - CDP Scheme of Government of India

1. Proposal under consideration

Camilla Carbon Pvt. Ltd.

2. Brief particulars of the proposal

Name of applicant, M/S Camilla Carbon Pvt. Ltd.

contact details, etc. Mr. Vinay J.S.,
566 B(P), Industrial Growth Centre,
Holenarasipura Road, Hassan
Pin Code: 573123
Mobile No. : 97319 20920
Location of Common M/S Camilla Carbon Pvt. Ltd.
Facility Centre 566 B (P), Industrial Growth Centre,
Holenarasipura Road, Hassan
Pin Code: 573123
Mobile No. : 97319 20920

Main facilities being Details of facilities to be provided

proposed Manufacture of coconut shell based activated carbon

Date of receiving
comments on Plant &
Machineries from
O/o DC, MSME

2.1. Introduction: brief about

2.1.1. General scenario of industrial growth/ cluster development in the state

The global activated carbon market size was valued over USD 3.0 billion in 2015.
In 2015, regarding revenue, The U.S. market was USD 759.3 million
Growing awareness for clean water consumption coupled with the rising number of
water treatment plants owing to government subsidies is anticipated to benefit the
overall market growth over the forecast period.
Activated carbon is used in various industries for air purification, groundwater
remediation, spill clean-up and drinking water filtration. Governments across the
globe are offering subsidies for water as well as air purification. These grants coupled
with rapid industrialization particularly in regions such as Asia Pacific is forecasted to
benefit the overall global market growth.
In 2015, Asia Pacific emerged as the most significant market and accounted for over
40% of overall global consumption. Rapid industrialization in the region, coupled with
regulations aimed at safeguarding the environment are expected to benefit the
regional market growth. Demand from countries such as Japan, India, and China are
expected to be critical contributors to the overall regional market demand.
North America demand is expected to grow at an anticipated CAGR of 13.0% over
the forecast period. Stringent regulations aimed at safeguarding the environment,
awareness regarding clean water consumption and prevalent industrialization have
Benefitted the regional activated carbon demand.

2.1.2. Sector for which CFC is proposed to be set up

For the small size industrial sector production of coconut shell based
activated carbon for which raw material is abundantly available and presently is
not utilised by others in this area
2.1.3. Cluster and its products, future prospects of products, Competition
scenario, Backward and forward linkages
This cluster is proposed to produce coconut shell based activated carbon
which is having a wide prospects in the industrial sector as a raw material for
purification. The raw material for the proposed cluster is coconut shell which
is not at all utilised for value addition and going to be used for boiling water
or wasted in this cluster area. The proposed activated carbon product is in
demand domestically and internationally and there is no competitor in this
cluster area presently. This cluster also forms a linkage for the utilisation of
the coconut shell and produces activated carbon forming a forward linkage
to the industry where there is sufficient demand in domestic as well as for
export in countries like North America and Europe.

2.1.4. Basic data of cluster (Number of units, type of units

[Micro/Small/Medium], and employment [direct /indirect], turnover,
exports, etc.):

Number type of employment Turnover exports

of units units
[direct indirect], domestic Rs Lakhs
Rs Lakhs ports

40 Micro/small 900 3000 12,000 1,000

2.1.5. How the proposed CFC is relevant to the growth of the concerned
cluster/sector

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 The raw material for the proposed CFC is coconut shell is widely available
and going as waste more than 90 %. The proposed CFC is going to utilise the
coconut shell going as waste and convert it as activated carbon which is
having a huge demand in the domestic and export market as mentioned in
2.1.1
3 Information about SPV

Description Details/ Compliance

a. Name and address Mr. Vinay J. S., M/s Camilla Carbon Pvt. Ltd.
b. Nature of SPV (company Private Ltd.
or Society or Trust)
c. Names of the State Govt Govt. of Karnataka
and MSME officials in SPV KCTU,
d. Date of formation of the 11/01/2019
company
e. Date of commencement of 11/01/2019
business
f. Number of MSE Member 22
Units1
g. Bye laws or MoA and AoA Yes
submitted
h. Main objects of the SPV2 1. To utilise the coconut shell going as
waste in the cluster and add value to it
by converting it into activated carbon
which is of high value and there is
demand in domestic and export market.
2. To provide opportunity for the
employment of the rural women and
men
3. To improve the economy of the cluster
as well as to contribute to the Indian
foreign exchange earnings in our own
capacity
i. SPV to have a character of Yes
inclusiveness wherein
provision for enrolling new
members to enable
prospective entrepreneurs
in the cluster to utilise the
facility
j. Clause about ‘Profits/ Yes
surplus to be ploughed
back to CFC’ included or

1
Should be more than 20 cluster MSEs (and not individuals) as members in the SPV
2
Main object of the SPV should rotate around cluster development

3
 not
k. Authorized share capital Rs. 10 Lakhs
l. Shareholding Pattern3
(Annexure 1 to be filled in)
m. Commitment letter for
SPV Upfront contribution4
n. SPV specific A/c in SBI Bank
schedule bank
o. Clause about ‘CFC may be Yes
utilised by SPV members
as also others in a cluster
and Evidence for SPV
members’ ability to utilise
at least 60% of installed
capacity’
p. Main Role of SPV Common Facility Centre for coconut shell
carbon product
q. Trust building of SPV5 so
that CFC may be
successful

4. Details of Project Promoters /Sponsors

i. Brief bio-data of Promoters
Mr. Vinay J.S., is a B.E. graduate having 17 years of industrial experience in the field of
activated carbon field
ii. The details of the promoters are as under :

Name of the Mr. Vinay J. S.

Office bearers
of the
Company
Age (years) 34 years
Educational B.E.
Qualification
Relationship
with the chief
promoter

3
No single unit will hold more than 10 % in the equity capital (or equivalent capital contribution) of SPV.
4
Share of the cluster beneficiaries should be as high as possible but not less than 10% of cost of CFC
5
Evidence of collective programme / initiative, soft intervention, discussions with the SPV members,
informal channels may be used as an evidence for Trust building.

4
Experience in
what
capacity/
industry/
years
Income Tax /
Wealth Tax
Status
(returns for 3
years to be
furnished)
Other
concerns
interest / in
which
capacity
/financial
stake

iii. Brief about Compliance with KYC guidelines

iv. Details of connected lending - Whether the directors / promoters of SPV are
having any directorship on any bank etc.
No, but directors have cordial relationship with the bankers.
v. Adverse auditor’s remarks, if any – to be culled out from audit report, in case
available. If SPV is new, it can be indicated as not applicable
Not Applicable
vi. Particulars of previous assistance from financial institutions / banks - If SPV is
new, it can be indicated as not applicable
Not Applicable
vii. Pending court cases initiated by other banks/FIs, if any - - If SPV is new, it can
be indicated as not applicable
Not Applicable

viii. Management Set-up

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 To indicate details regarding who will be the main persons involved in running
of CFC, its operations etc.
Mr. Vinay J. S. will be the main person involved in running of CFC,

5. Eligibility as per guidelines of MSE-CDP

Eligibility Criteria Comments

1. GoI grant will be restricted to

70% of the cost of project of
maximum Rs 15.00 crore. GoI
grant will be 90% for CFCs in NE
& Hill States, Clusters with more
than 50% (a) micro/ village (b)
women owned (c) SC/ST units.
2. Cost of project includes cost of
Land (subject to max. of 25% of
Project Cost), building, pre-
operative expenses, preliminary
expenses, machinery &
equipment, miscellaneous fixed
assets, support infrastructure
such as water supply, electricity
and margin money for working
capital.
3. The entire cost of land and
building for CFC shall be met by
SPV/State Government
concerned.

4. In case existing land and

building is provided by
stakeholders, the cost of land
and building will be decided on
the basis of valuation report
prepared by an approved
agency of Central/State Govt.
Departments/FIs/Public Sector
Banks. Cost of land and building
may be taken towards
contribution for the project.
5. CFC can be set up in leased
premises. However, the lease
should be legally tenable and for
a fairly long duration (say 15
years).

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 6. Escalation in the cost of project
above the sanctioned amount,
due to any reason, will be borne
by the SPV/ State Government.
The Central Government shall
not accept any financial liability
arising out of operation of any
CFC.
7. DPR should be appraised by a It can be indicated that the proposal is
bank (if bank financing is being submitted to SIDBI
involved) / independent
Technical Consultancy
Organization/ SIDBI.
8. Proposals approved and
forwarded by the concerned
state government.

7 Implementing Arrangements

Description Compliance
a. Name of Implementation Agency
b. Role of Implementing Agency
(e.g. implementation and
monitoring of project, sending
regular progress reports, issuing
proper UCs, )

c. Implementation Period 6

d. Commitment of State
Government upfront contribution
e. Commitment of Loans (Working
capital and/ or term loan)

8. Management and shareholding details:

9. Technical Aspects:
9.1 Scope of the project (including components/ sections of CFC)
9.2 Locational details7 and availability of infrastructural facilities
9.3 Technology

6
CFC should be operationalized within two years from the date of final approval
7
Minimum and maximum distance of cluster units from the place of CFC to be specifically mentioned so
that CFC is accessible to the units.

7
9.4 Raw materials / components
9.5 Utilities
9.5.1 Power
9.5.2 Water
9.6 Effluent disposal
9.7 Manpower

 The details of the manpower are as under :

S.No. Description of the employee Number

10. Implementation Schedule:

Activities Start Date Completion Date

Preparation of Project Report
Sanction of Grant from
Government of India
NOC from Pollution Control
Board
Site Development
Building up-keep
Placement of order to equipment
supplier
Supply of equipments by
suppliers
Installation of equipments at site
Sanction of power connection

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 Activities Start Date Completion Date
Trial Run
Commercial Production

11. Project components:

11.1 Estimated Project Cost (` in lakh):

Particulars Amount
1 Land and Building
2 Plant & Machinery including MFA, Installation,
Taxes/duties, Contingencies, etc.
3 Preliminary & Pre-operative expenses8
4 Margin money for Working Capital9
Total

11.2 Details of Land, Site Development and Building & Civil Work
11.3 Plant & Machinery:
(` in lakh)
Description No. Amount

Copies of quotations to be furnished

11.4 Comments on Plant and Machineries from O/o DC, MSME:

11.5 Misc. fixed assets
11.6 Preliminary expenses
11.7 Pre-operative expenses
11.8 Contingency Provisions:

11.9 Margin money for Working Capital

8
Maximum - 2% of project cost
9
Based on actual, but less than 25% of working capital requirements for 1 st Year

9
12 Proposed Means of Financing (Rs. in lakh):

Particulars %age Amount

Total 100.00 1453.50

12.1 SPV contribution:

12.2 Grant-in-aid from Govt. of India under MSE-CDP

12.3 Grant-in-aid from the State Government

12.4 Bank Loan/ others

13 Arrangements for utilization of facilities10 by cluster units:

Usage Charges :

14 Comments on Commercial viability:

15 Financial Economic viability:

Assumptions underlying the profitability estimates, projected cash flow
statements and projected balance sheet are placed at Annexure and the summary
of key parameters for the first 5 years are given below:-
(` Lakh)

S.No Particulars FY 1 FY 2` FY3 FY4 FY5

1 Net Block

2 Current Assets (incl.

cash/bank balance)

3 Current Liabilities (incl.

principal installment
falling due during the

10
User charges for services of CFC shall be close to prevailing market prices, as decided by the Governing
Council of the SPV

10
 year)

4 Long term borrowings

5 Capital

6 Reserves and Surplus

7 Unsecured loan

8 Net Worth (incl. GoI

Subsidy as Quasi-
equity)

9 Income

10 Gross profit

11 Depreciation

12 Profit after tax

13 Gross Cash Accruals

The projected revenue of SPV is based upon the following major assumptions:

16 Status of Government approvals

16.1 Pollution control

16.2 Permission for land use (conversion for industrial purpose)
17 Favorable and Risk Factors of the project : SWOT Analysis

18 Risk Mitigation Framework:

Key risks during the implementation and operations phase of the Project and the
mitigations measures thereof could be as below:
During implementation:

During operations:

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19 Economics of the project

20 Conclusion

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