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Looking for Investors – Attractive Biomass Pellet Project in South India


Introduction to South India’s Largest Biomass Pelleting Plant

During one of EAI’s Biomass Supply Chain Optimization project for a global FMCG for their three plants in Andhra Pradesh, Punjab & Haryana, we established a good relationship with some of the large names in the biomass briquetting and pelleting industry. Surprisingly the number of large vendors, in terms of the production capacity and the clients associated, are a very few in the southern parts of India.

pellet-plant

One such biomass briquette and pellet manufacturer is from the district of Eluru in Andhra Pradesh. Rohan Gutta, the Executive Director of the plant, who has immense knowledge in the field of utilization of agricultural waste into valuable products, established this plant in the year 2012 and it currently produces 3600 tons of briquettes and 840 tonnes of pellets annually. He has invested USD 1.9 million in infrastructure, working capital and R&D which includes –

  • 35,000 Sq Ft PEB Facility, Admin office, Security Office, Weigh Bridge room and Generators shed
  • Setup in 8.31 Acres
  • 100 employees
  • Very well done greenbelt and internal roads
  • 5 acres available for expansion
  • 60 tonnes capacity weigh bridge
  • Total area is covered with pipelines for any fire hazard with a 1 lac liters water sump
  • Dedicated 11kv power line from substation
  • 250KVA and 400KVA generators for 100% Power back up.
  • Loading and unloading machines for raw-materials

EAI has visited more than hundreds of biomass briquetting/pelleting facilities PAN India and there is no doubt that only a handful of briquetting/pelleting facilities are present like this one.

Current operations of the plant

Rohan’s biomass plant is currently involved in the production of  –

  • Biomass Briquette (100mm) for industrial boilers
  • Biomass Pellets (6 – 8mm) for industrial boilers and for commercial segments an alternate fuel in hotels, restaurants
  • Biomass Cubes (32mm) used as cattle feed
  • Biomass burner (6kg, 9kg, 15kg and 20kg) used to burn the pellets in the commercial segments

His current customers include large corporates – GSK, Jersey, SH Group, Vimala Feeds, Piyanshu Chemicals, Hetero, Godrej and more. He also has 60 customers in the commercial segment utilizing their pellet burners consuming pellets manufactured by them.

The need for investments – Balancing of Equipment

Rohan estimates a huge potential for pellets in five nearby districts of Andhra Pradesh from possible customers like Coca-Cola, Pepsi, Haldirams, Britannia and more who are located in close proximities to the plant.

So based on the huge market potential and almost zero competition, Rohan is looking for investments to expand is business by balancing the equipment by adding up to a 5 tonnes/hour pellet line to the current production to meet the demand. This will be done in the existing infrastructure with no additional land required.

So Rohan’s Business Case is as follows –

Rohan’s biomass pellet plant will be one of the top 5 largest producers of wood pellets in India and the no.1 in south India with an addition of a 5 tonnes/hour pellet line to the existing infrastructure, and will be supplying to a select group of companies for large scale use in boilers, and will be an integrated supplier of appliances and pellets for smaller scale establishments.

Looking for VC investment

Rohan’s biomass pelleting plant is looking for VC investments to support his expansion plans. The additional capital will be invested in balancing of equipment by adding up a 5 tonnes/hour pellet line to the current production to meet the demand in local market.

Rohan is keen to meet investors in this regard and explain his business and his business case.

If you’re interested in interacting with Rohan regarding this attractive investment opportunity, please send an email to Vijay Wilfred – vijay@eai.in

EAI looks forward to hearing from interested investors.

Thanks.

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Narasimhan Santhanam

Thank you for reading this post – hope it was helpful. You can connect with me at narsi@solarmango.com . My detailed profile here and my LinkedIn profile here

Posted in: Bio Energy

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3 Comments

  1. Hemtanu Saha September 15, 2017

    We are planning to set up a Biomass Plant in Northern India. Looking for investors who can invest on the project. Project level details will be shared during the discussion.

    If interested, please let me know

    (reply)
  2. prakash September 17, 2017

    Dear Sir,
    we have a sawdust,biomass ,pellet unit in nagpur , maharashtra, with good production capacity,
    needs to expand further , looking for sound investors ,
    ready materials , market , need balancing equipment,working capital requirements
    7083578055

    (reply)
  3. vineeth March 23, 2018

    Solar Lighting

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    Proper lighting with a good colour combination can do wonders for improving the ambience of a place. But improper usage can lead to energy wastage. Solar Lighting has emerged as a viable option – it is environment friendly and cheaper…

    – Vineeth Manathil
    ________________________________________

    There are certain critical areas that needs to be analyzed before using solar power:
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    How does it work?
    Solar Energy is abundantly available in India and it has been estimated that solar panels installed on less than 1% of the country’s landmass should be enough to meet the entire energy needs. Solar lights charge up during the day absorbing energy with the help solar cells. This energy is then stored in rechargeable batteries. At night time, this stored energy is converted back into light. This is a green, sustainable way of lighting since it not only reduces the electricity bills but is clean and non-polluting as well. It avoids using electricity generated from fossil fuel based power plants.
    Scope
    Solar lighting is all set to become the next generation lighting option in India. Approximately 60% of population in India does not have access to electricity. This percentage is even higher in case of rural India which mostly uses subsidized kerosene or biomass to light their homes. About 100,000 Indian villages do not access to the electricity grid which means that work comes to a halt in the dark. Kerosene which is highly polluting is the main source of energy for millions of Indian citizens. It is also a health hazard as smoke from kerosene lamps leads various to respiratory diseases and sometimes causes accidental fires as well.
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    Solar lighting makes a lot of sense in areas where there is no grid connectivity. Using solar powered lights can avoid connecting these places with the power grid; thus, saving on transmission costs. In India, even the main cities suffer from long, unscheduled power cuts. Given the large demand from both rural and urban areas, there is an expectation that the demand for solar lighting will increase rapidly in the future. A forecast from Navigant Research predicts shipments of LED-based street lights will be more than 17 million by 2020. It has also been estimated that there will be a production of 3.5 million solar lanterns by the end of 2015.

    Advantages of solar lighting
    • Low Cost – Since solar lights use light from the sun, it is independent of the power grid. There is no electricity costs and no fuel cost as sunlight is free. A basic solar lamp can be bought at a pocket friendly price of ~ INR 500-600.
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    • Safe – Unlike the conventional lights, there are no wires associated with the solar lights and so there is less risk of accidents. Usage of kerosene in lamps have caused numerous accidents and are also responsible for respiratory problems and poor eyesight.
    • Low Maintenance – The maintenance associated with solar lights is much less as compared to the normal lights. Regular cleaning of the panels with a dry cloth and warm soapy water is enough to run the lights for a very long time.
    Types of solar lights in India
    A wide variety of solar lighting products exist in the market such as solar torches, solar lamps/ solar lanterns, solar multifunctional devices including solar charging of simple devices and solar home systems.

    • Solar Lamps/Lanterns
    Solar lamps or solar lanterns have become popular in India because of the lack of access to electricity and the high costs of kerosene lamps. They are not only economical but also help reduce the number of accidents and health issues due to kerosene lamps. LEDs can be used in these lamps to further improve the efficiency of the lamps.

    • Solar Home Lighting Systems :
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    • Solar Street Lighting
    Solar Street Lighting System is a lighting system for illuminating streets and cross roads located in areas that are not connected to the power grid. Standalone solar street lighting system comprises of a solar panel, lead acid battery for energy storage, compact fluorescent lamp (CFL)/ LED lamps as light source, suitable electronics and hard-ware like pole, battery box for fixing of these sub system. The system is controlled by a controller with automatic on/off time switch, which controls the light from dusk till morning.

    • Solar LED Lighting :
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    Solar Garden Lights :
    Solar garden lights are decorative lights that are used for garden lighting. They come in a variety of designs and are commonly seen around swimming pools or for marking footpaths.

    Suppliers in India:

    Online Store : https://hardollenterprises.com/solar-lights
    The number of solar lights manufacturers in India is growing steadily. Hardoll Enterprises LLP is a social enterprise that was established in 2016, to provide services to the under-privileged of the society. It has sold more than 10 thousand solar systems till date and provides easy financing options as well. D.Light Design also started with a charter for social responsibility by bringing affordable lighting to millions of poor. Its flagship product is S250 which is a dual purpose solar light and mobile charger. Tata Solar which is one of India’s largest solar companies also manufactures a wide range of solar lighting solutions based on both LED and non LED lights. Philips the leader of lighting solutions in India, also manufactures aesthetic and sophisticated solar lighting products. It mainly manufacturers solar street lights and decorative lighting pieces running solar power. Globally, Africa is set to become the world’s largest market for solar lamps. There has been an increasing demand for cost effective sustainable lighting in Asian and African countries. This has led to the maturing of solar off-grid lighting industry. China is the largest manufacturer of solar lights globally. These countries possess immense potential for growth in future. The government in these countries are also promoting off-grid lighting.
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    More than 500K solar home systems were sold in 2014 and the market is expected to grow at 60% annually in India. It was estimated that approximately 900K homes were using solar home systems, offsetting 39,000 tons of carbon emissions in 2014. Improving affordability, better access and government support are the main drivers behind increasing demand for solar lights. Solar Lighting will not only be restricted to rural applications but will also be increasingly used as commercial lighting in India. The Indian government has mostly subsidized large scale solar farms for grid connected power which mostly benefits large developers and investors. This has resulted in the rooftop solar and off grid solar segment being a tiny fraction of the large solar farm segment. The government needs to shift its priority and provide more impetus to solar lighting to meet India’s climate change goals.

    (reply)

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