Clean Coal Solutions Limited
- Capturing values from Innovation
Business Plan Round-2
PAN INDIA Business Contest
Chennai
Registration ID- S28229
Team leader
Ashiwani Kumar Gupta
Visionary Leadership in Manufacturing
IIM Calcutta
Ph - 09204058189
e-mail – ashw711@yahoo.com
Coking Coal Matrix – 2018 Perspective
4 MT
SAIL
TATA STEEL
12 MT
20 MT
JSW
JSPL
12 MT
ISPAT
20 MT
8 MT
ESSAR
MITTAL
6 MT
10 MT
18 MT
POSCO
Others
Total – 110 MT
OPPORTUNITY WINDOW
Widening Demand-Supply Gap of Coking Coal
140
120
MILLION TON
100
DEMAND
SUPPLY
Linear (DEMAND)
Linear (SUPPLY)
80
60
40
20
0
2006
2008
2010
2012
2014
YEAR
2016
2018
2020
2022
Elevator Pitch
Current 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
china
Our 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 Statement
To 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
Product
Development
Services
Marketing
and Sales
Procurement
CCSL
Outbound
Logistics
Inbound
Logistics
Operations
Leadership Position
SWOT Analysis
STRENGTHS







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



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
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
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 – Operation
Raw Material
Process
VP- Commercial
Sales and Finance
Business Development
Legal
Quality
Human Resource
Financials - 1
Type
Details
Input Cost
Material Cost
9600000
A
Operating Cost
Utilities
2000000
B
500000
C
2000000
D
Licensing
100000
E
Infrastructure
700000
F
2000000
G
Marketing
500000
H
Transportation
400000
I
Packaging
150000
J
13150000
K
Labor & Mgt Cost
Capital Cost (Fixed)
Land
Machinery Cost
Promotion & Selling
Total Initial Cost
Manufacturing cost
per Litre
K=(A+B+C+H+I+J)
INR
Notations
285.50
L
Financials-2: Lifecycle
Lakhs
179.5
Promotion
169
144
Operation
Input Cost
48
Capital
Stages
CCSL: Break Even Profile
200
160
LIABILITY,
Lakhs
120
Break-Even:
5 Years
80
40
0
2008
-40
2009
2010
2011
2012
-80
Years
2013
2014
2015
2016
Gaps
Project: Innovative Chemical for reducing Ash content of
Coal
Where we are :-
Where we want to be:
Start of the venture
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.
Risk Assessment Analysis - 1
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 - 2
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 further
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:
Reducing the price so as to fight with the competitor
Better coordination with the customers for continuous supply of
solution
Further product innovation, finding another new chemical solution
which will reduce the ash content further)
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