Pre-Feasibility Study Report
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- Millicent McLaughlin
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1 Pre-Feasibility Study Report Of to be set-up at Survey No.: 1905/1, Village: Gangad, Taluka: Bavla District: Ahmedabad , Gujarat
2 INDEX S.N. 1. Executive Summary 2. Introduction of Project (ii) (iii) (iv) (v) (vi) (vii) (viii) Identification of project and project proponent Brief description of nature of Project Need for the project and its importance to country and or region Demand supply gap Importance vs. Indigenous production Export Possibility Domestic/export market Employment Generation 3. Project (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) Type of the project Location of project Details of alternative site considered Size or magnitude of project Project description with process details Raw Material requirement Raw Material sources Market area of finished products Mode of transportation of raw material and products Recycle/reuse options Quantity of waste to be generated alongwith mode of disposal 4. Site Analysis (ii) (iii) (iv) Connectivity Land use pattern Land ownership Existing infrastructure Pre Feasibility Report Page 1 of 14
3 (v) (vi) (vii) Soil classification Climatic data from secondary sources Social infrastructure available 5. Planning Concept (ii) (iii) (iv) Population projection Land use planning Assessment of infrastructure demand (Physical & Social) Amenities/ facilities 6. Proposed Infrastructure (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Industrial area (processing area) Residential area (non processing area) Green belt Social infrastructure Connectivity (traffic & transportation road/rail metro/water ways) Drinking water management (source and supply of water) Sewerage system Industrial waste management Power requirement and supply/source 7. Rehabilitation and Resettle (R& R) Plan Policy to be adopted ( Central /State) in respect of the project affected persons including home oustees, land oustess and landless laborers a brief outline to be given) 8. Project Schedule & Cost Estimation (ii) Likely date to start construction and likely date of completion (Time schedule for the project to be given). Estimated project cost along with analysis in terms of economic of the project. 9. Analysis of Proposal (final recommendations) Financial and social benefits with special emphasis on the benefits to the local people including tribal population, if any, in the area. Pre Feasibility Report Page 2 of 14
4 1. Executive Summary Name of the unit : M/s. Rheomax Gums LLP Location of the factory : Survey No.: 1905/1 Village: Gangad, Taluka: BavlaDistrict: Ahmedabad, State: Gujarat, PinCode: Promoter of the unit : Mr. Kadam Chudgar B.E.(ChemEngg.), M.S.(ChemEngg., USA) Telephone number : +91(79) Fax number : +91(79) / kadamchudgar@gmail.com Contact information : Mr. Kadam Chudgar (Partner) Office Address 505 Kaivanna Building, Besides Ahmedabad Central Mall, PanchvatiAmbawadi Road, Ahmedabad Home Address 11F Sentosa Park, Chudgar Farm, Behind HiraRupa Hall, AmliBopal Road, Ahmedabad Mob. No kadamchudgar@gmail.com Category of industry : It may be noted that our project fall under activity 5(f) of category A as stated in the EIA Notification, 2006 and hence Environmental Clearance is obligatory. Location : M/s. Rheomax Gums LLP Site Address: Survey No.: 1905/1 Village: Gangad, Taluka: Bavla, District: Ahmedabad, State: Gujarat, Pin Code: Office Address 505 Kaivanna Building, Besides Ahmedabad Central Mall, Panchvati Ambawadi Road, Ahmedabad Mob. No Production details : Bulk drugs & pharma intermediates manufacturing unit Cost of the project : Rs 7.60 crores Land area : 17199m² Source of water : Tanker/ Bore well Source of power : GEB (Gujarat Electricity Board) Pre Feasibility Report Page 3 of 14
5 2. Introduction of Project Identification of project and Project Proponent Rheomax Gums LLP is an innovation led company planning to develop a wide range of pharmaceutical APIs and intermediates.we would place high emphasis on environment, health & safety as well as compliance of necessary legislations. The promoter, Mr. Kadam Chudgar as done B.E. - Chemical Engg.(DDIT, Nadiad, Gujarat) and M.S.- Chemical Engg.(Illinois Institute of Technology, Chicago, USA)and has vast experience in this field.in a career spanning more than 10 years, Mr. Chudgar has been associated with many multinational companies like Bayer, GE, Genentech and Dupont both as a consultant and a full time employee managing technical projects and general management in the pharmaceuticals and chemicals industries both in India as well as in USA. (ii) Brief description of nature of Project The project is being set up for producing pharmaceutical products/ bulk drugs. The technology is totally proven and safe in all aspects. The project will help industrial development in the region. It will increase employment opportunities in the region and will earn foreign exchange for the country. (iii) Need for the project and its importance to country and or region The Active Pharmaceutical Ingredient (API) forms the most vital part of any finished dosage product. Global generic markets are witnessing a period of unprecedented growth as blockbuster drug patents expire and the need for managing healthcare costs drives generic substitution globally. Strength in API is an integral part of capitalizing on this opportunity. As players globally come under pressure owing to weak regulatory compliance, quality or inefficient cost-base issues, India remains one of most favored API destinations globally. Bulk drugs manufacturing sector in India is well established and has recorded a steady growth in the overall Indian industrial scenario. The bulk drugs and allied industries have been amongst the fastest growing segments of the Indian industry. India's pharmaceutical industry is the third largest in the world in terms of volume. India is also one of the top five active pharmaceutical ingredients (API) producers in the world. The advantage of having low cost manufacturing capability and the key skills to develop quality products has captured international attention. Pre Feasibility Report Page 4 of 14
6 The state of Gujarat has become a land of opportunities for several industries in last few decades. Supportive role of Gujarat government in providing necessary infrastructure and amenities along with minimum legal hurdles has contributed to Gujarat becoming one of the most sought after investment destination. Further, Gujarat has a strong and diversified chemical industry base which meets the demands for a continuous supply of APIs and drug intermediates. The project is expected to bring the following benefits: Country will save valuable foreign exchange as import of these drugs will reduce by corresponding amount. These drugs also have export potential and hence possibility of earning foreign exchange. The proposed project will provide quality product at lower cost to the users. There should be positive impact on the socio-economic condition of the area in terms of direct and indirect employment due to the proposed project. There will be employment opportunity for local people during construction and operation phase of the proposed expansion. (iv) Demand supply gap The bulk drug and bulk drug intermediates industries have always played a major role in the economic development of the country. The growing demand of bulk drug and bulk drug intermediates in the domestic as well as international markets has provided a strong base for Rheomax Gums to set up its manufacturing facility at Gangad. With the emphasis on health care for all citizens the demand for drugs is expanding fast and the proposed project will fill the gap between supply and demand. (v) Imports vs. Indigenous production The products which will be manufactured in said premises will be of international standards, which will have acceptability in the export as well as domestic markets.the project proposal does not envisage import of any of the listed products as demand for them will be met through indigenous production only. Some of the raw materials may however be imported as and when required. (vi) Export possibility There is a huge export market for the proposed APIs and intermediates which include the developed western markets (USA & Europe) as well as the developing markets of Asia and Africa. Rheomax Gums LLP will focus more on the domestic market while steadily growing the export market. Pre Feasibility Report Page 5 of 14
7 (vii) Employment generation The company will provide approximately more than 30 numbers of contract as well as permanent employment to the local or surrounding people as well female employee. Estimated details are as stated in following table: Nos. of employees (approx.) Total worker in all shifts (round o clock) Project Type of the project: API (Bulk Drugs) & intermediates manufacturing unit. (ii) Location of project: Survey No.: 1905/1, Village: Gangad, Taluka: Bavla, District: Ahmedabad, State: Gujarat, Pin Code: The geographical information of the proposed project is as given below: Latitude : 22 39'52.24"N Longitude: 72 16'56.28"E Salient features were considered while finalizing the proposed project site location are: Proximity to Mundra/Kandla port makes it an attractive destination for exports. The project site is well connected by road & rail to major cities of Gujarat and the rest of India. Trained and qualified manpower is easily available in this area. (iii) Details of alternative site considered: No alternative site is examined because the proposed project is to be set up where there is easy availability of power, transportation, infrastructure and other required facilities. Pre Feasibility Report Page 6 of 14
8 (iv) Size or magnitude of project: The production capacity of the proposed project is given below: S.N. Product Quantity (MT/month) 1. Chloro Compound (2-chloromethyl-3,4-dimethoxy pyridine hydrochloride) Pantaprazole sodium 5 3. Phenylephrine HCl 2 4. Pregabalin 2 5. Telmisartan 2 6. Montekulast sodium 2 7. Ondansetron HCl 2 (v) Project description with process details For Manufacturing process of above stated products please refer attached Annexure - 4 of Form-1. (vi) Raw material requirement For details of raw material require to manufacturing the above stated products please refer attached Annexure 3 of Form-1. (vii) Raw Material sources: The company will be purchase raw materials from local and/or import depends on availability and market value. (viii) Market area of finished products: API (Bulk Drugs) and its intermediates are the active ingredient or chemical in a pharmaceutical product (medicine) in any dosage form (tablet, syrup, etc). They are widely used to treat a variety of diseases in the healthcare industry. (ix) Mode of transportation of raw material and products: The required raw materials for the manufacturing of proposed products would be transported by either sea or road. Similarly in case of products they would also be transported by either sea or road/air-ways depending on need and location of customers. Pre Feasibility Report Page 7 of 14
9 (x) Recycle/Reuse options: Industry will recover most of the spent solvent to be sent back for regeneration/ reactivation for further use in the process and also explore the maximum possibilities of reuse/recycle of water. (xi) Quantity of waste to be generated along with its mode of disposal: The type, quantity and mode of disposal of solid/ hazardous wastes generated from the proposed plant are given below: Details of Solid/Hazardous Waste Sr. no. Type of waste Hazardous waste category* Quantity per month Mode of storage & disposal 1. ETP sludge MT 2. MEE residue kg Will be collected, stored and disposed to an authorized TSDF site. Will be collected, stored and sent to a Common Hazardous Incineration Facility (CHWIF). 3. Sludge from wet scrubber kg Will be collected, stored and disposed to an authorized TSDF site. 4. Process waste/ residue MT Will be collected, stored and sent to a Common Hazardous Incineration Facility (CHWIF). 5. Spent carbon/ spent catalyst kg Will be sent back for regeneration/ reactivation. 6. Used oil kl Will be collected, stored reused as low grade lubrication and left over quantity (if any) sold to an authorized dealer or re-processor. 7. Discarded drum/ containers/carboys Plastic bags/ liners Nos. Will be collected, stored and sold to an authorized/ registered recyclers. 8. Fly ash # # 10 MT Will be collected stored and given to nearest brick/cement manufacturing unit. NOTE: * Hazardous waste category as per the Hazardous Waste (Management, Handling & Transboundary Movement) Rules, # Fly ash EXCLUDED from the category of Hazardous Waste (Management, Handling & Transboundary Movement) Rules, Pre Feasibility Report Page 8 of 14
10 4. Site Analysis Point Connectivity The proposed plant is to be set up within around 60 km away from Ahmedabad city. Existing roads and rails will be used for the proposed project. No new roads or rails are envisaged outside the boundary of the plant. Nearest Airport - Ahmedabad Airportabout 60 km (ii) Land use pattern The proposed plant will be set up in open Non Agriculture (NA) land. The said land falls in the Ahmedabad District. The land classification according to the different uses for the rural areas of the district is given below on the basis of information collected for the Village Directory. S. N. Classification Area (in Hectares) 1 Forest Irrigated Un-Irrigated Cultivated waste (Including Gaucher & Groves) Area not available for cultivation Total Source: Village& Town Directory, Census of India 2001 (iii) Land ownership Owned by company (iv) Existing infrastructure Land: sq.m. For more details please refer Annexure- 2 of Form- 1 Utilities: Power requirement of for the proposed plant will be met by GEB. o Water: Source of water is Tanker/ Borewell. o Fuel: Coal o Power: Gujarat Electricity Board (GEB). However in case of power failure, D.G. set will be used as source for power back-up. Pre Feasibility Report Page 9 of 14
11 Point (v) Transport: o Rail: The nearest broad gauge railhead is Ahmedabad. o Road: The proposed plant is connected to Ahmedabad by road routes. The distance from the plant to Ahmedabad is about 60km. o Air: The nearest domestic/ international airport is Ahmedabad approx. 60km. Communication: o All facilities are available i.e. Telephone, Fax, Internet etc. (vi) Soil classification The characteristic of soil if this area can broadly classified as black, medium black, goradu, kyari and rocky. (vii) Climatic data from secondary sources Temperature: o Average(annual) Maximum: 44.9 C o Average (annual) Minimum : 6.4 C o Maximum in month May : 44.7 C o Minimum in month January : 7.3 C Rainfall: o Average (annual) : 803 mm o Maximum rainfall in 24 hours: mm (September) o Minimum rainfall in 24 hours : 15.7 mm (March) Relative Humidity (%): o Maximum in month- August : 88 % o Minimum in month- March : 18% Wind Speed: o Avg. wind speed: 6.7kmph. (viii) Social infrastructure available Education: o Ahmedabad district (rural) has a literacy rate of 62.3% and Ahmedabad district (urban) has a literacy rate of 83.6%. Pre Feasibility Report Page 10 of 14
12 Point o There are total 2.6 primary, 1.2 secondary, 0.7 higher secondary and 0.1 college educational institutions/per populations in the district. o There are 39 beds in medical institutions per Health: populations in Bavalataluka of the district. The district has a presence of private specialized hospitals to provide a comprehensive range of tertiary and secondary care services backed by state-of- the- art technology and trained medicos. o The company is having separate OHC and providing first aid facility and appointed a qualified part time Doctor of medical inspection. Also company is conducting the six month medical checkup of all employees and the records are maintained. The company has also providing the Antidote Kits. In case of Emergency or major accident the company is having its own transport facility to shift the injured employees to outside Hospital for further treatment. o There are 39 beds in medical institutions per populations in Bavla town of the district is exists. o The district has a presence of private specialized hospitals to provide a comprehensive range of tertiary and secondary care services backed by state-of- the- art technology and trained medicos. o General details and availability of different amenities in Ahmedabad district is given under; S.N. General Information details 1 Total Population Rural Population Urban Population Total Villages Literacy rate 79.5 % Amenities 6 Education 99.3 % 7 Medical 78.4 % 8 Drinking Water 96.9 % 9 Post & Telegraph 79.1 % 10 Transport Communication 98.7 % 11 Approach by tar road 98.9 % 12 Power supply 100 % Source: District Census of India 2001 Pre Feasibility Report Page 11 of 14
13 5. Planning Concept Point Planning concept (ii) Population projection It is a pharmaceutical manufacturing industry where all types of facilities are easily available around site. Transportation services are nearest to the plant. Population of Ahmedabad district (including Rural Population Urban Population as per District Census of India (iii) Land use planning As per Annexure- 2 of Form 1 (iv) Assessment of infrastructure demand (physical & social) (v) Amenities / facilities There is no competitive demand from other industries at present, whereas details study w.r.t. physical & social would be incorporated in EIA study of the study area. All type of requisite facilities like water, hospitals, schools, transportation etc. are within arm s reach. 6. Proposed Infrastructure: Point Land area (ii) Residential area Total land area is 17199m².For more details please refer Annexure- 2 of Form 1 Not applicable (iii) Green belt area Green belt area is 6074m² (iv) Social infrastructure (v) Connectivity (traffic & transportation road/ rail metro/ water ways) (vi) Drinking water management (source and supply of water) (vii) Sewerage system Not applicable, whereas details study w.r.t. physical & social would be incorporated in EIA study of the study area. No new road, rail, air/ waterborne or other transport infrastructure including new or altered routes and stations are envisaged for the proposed plant. Existing transportation facilities available are enough to take care of the increasing traffic. Source of water supply is tanker/bore-well. Sewerage will be treated & discharged into the Septic tank/ Soak pit system. Pre Feasibility Report Page 12 of 14
14 Point (viii) Industrial management waste Water Pollution : o Effluent generated from the proposed unit will be treated in proposed effluent treatment plant (ETP). Air Pollution : o Process gas/ flue gas /fugitive emissions: adequate pollution control measures would be provided to control the process gas/ flue gas /fugitive emissions. Solid & Hazardous waste : (ix) Power requirement & supply/source o Quantity of generated solid/ hazardous wastes will be properly managed and disposed. o Estimated quantity of power requirement is 125 KVA and would be sourced out from Gujarat Electricity Board (GEB). 7. Rehabilitation and Resettle (R& R) Plan o Not applicable 8. Project Schedule & Cost Estimation o Likely date of start of construction and likely date of completion (Time schedule for the project to be given). o Proposed date of start of construction and machine erection/ installation: After getting Environment Clearance from EAC and No Objection Certificate from the GPCB. o Proposed date of start production: After getting the statutory required Consent & Authorization from the GPCB. o Estimated project cost along with analysis in terms of economic viability of the project. o Estimated project cost: total estimated cost of the project would be Rs Crores, details are as summarized under: Sr.No. Particulars Amount (Rupees in Crore) 1). Land & Land Development ). Building ). Plant and Machinery ). Utilities 0.50 Pre Feasibility Report Page 13 of 14
15 Sr.No. Particulars Amount (Rupees in Crore) 5). Piping, Valves, Electrification and fittings ). Lab and R&D equipments ). ETP ). Technical know-how ). Preliminary expenses 0.25 Total Project Cost 7.60 o Economic viability / Payback period calculation: expected payback period/ turnover is 5 years, details are as summarized under:- Year Expected turnover (Rupees in Crore) Analysis of Proposal (final recommendations) o Financial and social benefits with special emphasis on the benefit to the local people including tribal population (if any, in the area) are summarized under: (Proposed budget for activities under Corporate Social Responsibility) S.N. Activities 1. Education of poor children: Implementation Schedule Budgetary Cost (Rupees in lakhs) Give scholarships to meritorious students and distribute school 5 books, bags and other school supplies to the needy children. 2. Tree Plantation 5 years (2016 to 2020) 2 3. Medical camp for local villages 3 4. Drinking water facility 3 5. Vocational and skill development training for youth Total 5 years 16 3 Pre Feasibility Report Page 14 of 14
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