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 –

20 MT 18 MT 10 MT 6 MT 8 MT 12 MT 4 MT Coking Coal Matrix – 2018 Perspective Total – 110 MT

OPPORTUNITY WINDOW Widening Demand-Supply Gap of Coking Coal

Elevator Pitch Current Scenario: Coal adds up % 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 Inbound Logistics Outbound Logistics Operations Marketing and Sales Procurement Services Product Development CCSL 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  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 Finance Process Business Development Legal Quality Human Resource

Financials - 1 TypeDetailsINRNotations Input CostMaterial Cost A Operating CostUtilities B Labor & Mgt Cost500000C Capital Cost (Fixed)Land D Licensing100000E Infrastructure700000F Machinery Cost G Promotion & SellingMarketing500000H Transportation400000I Packaging150000J Total Initial CostK=(A+B+C+H+I+J) K Manufacturing cost per Litre L

Financials-2: Lifecycle Capital Input Cost Operation 48 Promotion Lakhs Stages

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 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) 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

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