Eco Tyre Recycling - Pyrolysis plant - Pitch Deck.pptx

Business plan for pyrolysis plant

1. Eco Tyre Recycler s Business Plan – Girish Vij/Sunil Nayak

2. Executive Summary Eco Tyre Recyclers plans to establish a state-of-the-art tyre recycling plant in Pune, Maharashtra. The plant will convert used tyres into valuable products such as recovered carbon black, pyrolysis oil, and scrap steel. This initiative will cater to the burgeoning demand for recycled materials, driven by environmental concerns and industrial needs.

3. Market Price Carbon Black INR 30000 Pyrolysis Oil INR 40000 Steel Wire INR 34500

4. Funding and Financial Details Funding Required: INR 2 crore Loan Amount Requested: INR 2 crore Repayment Period: 7 years Interest Rate: 15% per annum Grace Period: 2 years (no EMI payments during this period)

5. Initial Setup Capex – 2 Cr. Machinery & Equipment Land & Building 20 Lakhs Other Setup Costs 30 Lakhs 1.5 Cr

6. Monthly Running Costs Cost Component Amount (INR) Raw Materials 3 lakhs Labor Costs 1 lakh Utilities and Maintenance 1 lakh Miscellaneous Costs 50,000 Founders Salary 4 lakhs Total Monthly Opex 9.5 lakhs

7. Revenue Projections Product Monthly Production (tons) Price per Ton (INR) Annual Revenue (INR) Recovered Carbon Black 50 30,000 1.8 crores Pyrolysis Oil 50 40,000 2.4 crores Steel Wire 10 34,500 41.4 lakhs Total Revenue 4.61 crores

8. Profit Projections Metric Amount (INR) Monthly Net Profit 28.95 lakhs Annual Net Profit 3.47 crores

9. Break-Even Analysis Metric Amount (INR) Initial Setup Costs 2 crores Annual Running Costs 1.14 crores Total Annual Fixed Costs 3.14 crores Contribution Margin per Unit 23,450 Break-Even Point (units) 9,132 Break-Even Revenue 3.46 crores

10. Production Growth - 10 Years Year Growth Rate Carbon Black (tons) Pyrolysis Oil (tons) Steel Wire (tons) 1 Base Year 600 600 120 2 10% 660 660 132 3 12.50% 743 743 149 4 15.60% 859 859 172 5 19.50% 1026 1026 205 6 24.40% 1276 1276 255 7 30.50% 1665 1665 333 8 38.10% 2300 2300 460 9 47.70% 3396 3396 679 10 59.60% 5420 5420 1084 Assumptions : 10% growth in Year 2 Growth rate increases by a factor of 25% of the previous year's growth rate starting from Year 3 10% of profit reinvested starting Year 2 Founder's salary remains constant Monthly profits reinvested in the business Net Profit in Year 1 : 3.47 crores Net Profit in Year 10 : 33.97 crores CAGR = 26.04% Annual Production Increase : Base production in Year 1 is 50 tons each for Carbon Black and Pyrolysis Oil, and 10 tons for Steel Wire. Production increases by the same growth rate applied to revenue.

11. Loan Repayment Plan Metric Amount (INR) Principal Amount After 2 Years 2.645 crores EMI (5 years) 6.36 lakhs

12. Projected Growth The projected financial growth assumes a 10% growth in Year 2, with the growth rate increasing by a factor of 25% of the previous year's growth rate starting from Year 3. Profit reinvestment is 10% in Year 2. Year Total Revenue (INR) Total Costs (INR) Net Profit (INR) Reinvestment (INR) Net Profit After Reinvestment (INR) 1 4.61 crores 1.14 crores 3.47 crores 3.47 crores 2 5.07 crores 1.25 crores 3.82 crores 0.38 crores 3.44 crores 3 5.71 crores 1.38 crores 4.33 crores 0.43 crores 3.90 crores 4 6.59 crores 1.52 crores 5.07 crores 0.51 crores 4.56 crores 5 7.87 crores 1.69 crores 6.18 crores 0.62 crores 5.56 crores 6 9.79 crores 1.87 crores 7.92 crores 0.79 crores 7.13 crores 7 12.78 crores 2.07 crores 10.71 crores 1.07 crores 9.64 crores 8 17.65 crores 2.30 crores 15.35 crores 1.54 crores 13.81 crores 9 24.85 crores 2.54 crores 22.31 crores 2.23 crores 20.08 crores 10 35.80 crores 2.82 crores 33.97 crores 3.40 crores 30.57 crores

13. Questions?