Clean Coal Solutions Limited- Capturing values from Innovation

Business Plan Round-2PAN INDIA Business Contest

Chennai

Registration ID- S28229

Team leader

Ashiwani Kumar GuptaVisionary Leadership in Manufacturing

IIM CalcuttaPh - 09204058189

e-mail – ashw711@yahoo.com

SAIL

TATA STEEL

JSW

JSPL

ISPAT

ESSAR

MITTAL

POSCO

Others

20 MT

20 MT

18 MT10 MT

6 MT

8 MT

12 MT

12 MT

4 MT

Coking Coal Matrix – 2018 Perspective

Total – 110 MT

OPPORTUNITY WINDOWWidening Demand-Supply Gap of Coking Coal

0

20

40

60

80

100

120

140

2006 2008 2010 2012 2014 2016 2018 2020 2022

YEAR

MIL

LIO

N T

ON

DEMANDSUPPLYLinear (DEMAND)Linear (SUPPLY)

Elevator PitchCurrent Scenario:• Coal adds up 30-40 % of cost of steel produced.• Rapid escalation of imported coal price• Scarcity of superior quality coal in India (high ash content of up to 35%)• Existing chemical beneficiation process only achieves ash to 15%• Resorting to import of coal from Australia and chinaOur Proposition:We have devised innovative Chemical Solution to reduce the Ash content down to 8-9%, which is comparable to Australian Coal (considered the best in the world).

Mission Statement “Our mission is to provide chemical

solution for coal benificiation process for the domestic steel industry towards attaining self reliance and satisfaction through employing quality practices and services”

Vision StatementTo become market leader in providing cost effective innovative chemical solutions for mineral processing industries

Business Concept

Value Proposition: Self Reliance in raw materials – Coking Coal

Key Products/Services:

Coalfroath

Differentiation: Only Chemical to bring down the ash content to 9-10

%

Business Model

Inbound Logistics

Outbound Logistics Operations

Marketing and Sales

ProcurementServices

Product Development

CCSL

Leadership Position

SWOT AnalysisSTRENGTHS

Innovative product, first of its kind Highly effective in reducing the ash contents of the coal, hugely

cost effective, resulting in huge savings for the organization using the coal

Huge demand of coal in the country due to ongoing large number of projects in all major sectors, particularly in Steel industry

Infrastructure requirement is very less for set up of the plant Availability of raw material for producing the chemical solution Technical Competency of the people of the organization Participants are completing Visionary Leadership in

Manufacturing from IIM Calcutta

WEAKNESSES Lack of funds for setting up the

plant Lack of experience in setting up

the plant Lack of experience in running of

the plant from top management’s view

OPPPORTUNITIES Huge opportunity to capture the current market of Steel Industry Cater to the future requirements of coal with less ash content for

various industries in particular Steel Industry Operations can be expanded to the global level to capture the

demands of coals in other countries

THREATS As per the present situation since

it is a innovative chemical solution it has no competition per say in the market.

Reduction in the import duty from coal imported from Australia which has similar ash content

Sales/Marketing Strategy

Advantage – Only Alternate Chemical

Compatibility – Coal Beneficiation Process

Complexity – Blended Chemical

Observability – Successful Result to support

Riskiness – No risk Involved

Divisibility – Gradual Market Penetration

The Management Team

CEO – Mr. A. K. Gupta

Management VP (Operations) – Mr. S N Lenka VP (Commercial) – Mr. Anand V. R.

Chemical: Research and Development in Raw material beneficiation for Integrated Steelmaking Process, 6 Years

Metallurgical: Research and Implementation in Iron and Steelmaking Processes, 7 years

Mechanical: Planning and Supply Chain Management in petrochemical Industry, 6 years

Resource Requirements

Technology Requirements:

Blending/Mixing Technology Personnel requirements:

Technicians and Logistics Resource requirements:

Financial External requirements:

Networking and Sales

Organization Structure

CEO

VP- Commercial VP – Operation

Raw Material Sales and FinanceProcess Business Development

LegalQuality

Human Resource

Financials - 1Type Details INR NotationsInput Cost Material Cost 9600000 A

Operating Cost Utilities 2000000 B

  Labor & Mgt Cost 500000 C

Capital Cost (Fixed) Land 2000000 D

  Licensing 100000 E

  Infrastructure 700000 F

  Machinery Cost 2000000 G

Promotion & Selling Marketing 500000 H

  Transportation 400000 I

  Packaging 150000 J

Total Initial Cost K=(A+B+C+H+I+J) 13150000 K

Manufacturing cost per Litre  

285.50L

Financials-2: Lifecycle

Capital

Input Cost

Operation

48

Promotion

144

169

179.5

Lakhs

Stages

-80

-40

0

40

80

120

160

200

2008 2009 2010 2011 2012 2013 2014 2015 2016

Years

LIA

BIL

ITY

,L

akh

s

CCSL: Break Even Profile

Break-Even:5 Years

Project: Innovative Chemical for reducing Ash content of Coal

Where we are :-

Start of the venture 

Where we want to be:

Industry leader in supplying innovative chemical solution, & continuously improving on the solution

How we will get there :- By marketing aggressively the product to major Steel Industry manufacturers, convincing them about usefulness of the product & huge cost saving benefit it will cause to the steel industry. By remaining profitable we will grow organically to cater to future markets. 

Gaps

Project: Innovative Chemical solution for reducing aash contents of coal

Scenario: Reduction of import duty of coal imported from Australia which is superior to coal extracted from Indian mines

Risk Factor: Reduction in business by 40%

Probability of Occurrence : c Very low ●●c Low c Medium c High c Very high

Level of Consequences : c Very low c Low c Medium c ●●High c Very high

Prevention Actions:•Cost cutting by process innovation •Assurance of uninterrupted supply of chemical solution to customers•Long term contract with customers•Reducing the price to such an extent that it will be always beneficial to use the chemical solution to process on the coal from our own mines, so the end price of the coal will match the price of imported coal

Risk Assessment Analysis - 1

Risk Factor #2: Similar Innovation by competitor

Description of Risk: Competitor has come up with similar or more innovative chemical solution which will reduce the ash content still furtherProbability of Occurrence: c Very low ●●c Low c Medium c High c Very highLevel of Consequences : c Very low c Low c Medium c●● High c Very high Prevention Actions:Reducing the price so as to fight with the competitorBetter coordination with the customers for continuous supply of solutionFurther product innovation, finding another new chemical solution which will reduce the ash content further)

Risk Assessment Analysis - 2

Exit

Market Capitalization: 60 % in 7 Years Break Even Point: 5 Years Public Issue:

- Expansion Strategy after 3 years of start-up Potential Acquirers: Steel Manufacturing

Industries in India

Thank You