INVESTMENT OPPORTUNITY – Green fuel Ref:AA230003

Details

Our client is a Company promoted by two young professional entrepreneurs from India whose ambition is to develop, own and operate bio energy assets in India. The vision is to be the go-to bio energy manufacturer in their home and nearby states in Southern India [Ethanol deficient states].

The Company aims to achieve the following:

• Deliver sustainable energy solutions, meeting India’s energy security needs.
• Meet India’s commitment to reduce carbon
• Lower vehicular pollution (bended ethanol-based fuel is less polluting)
• Provide savings of foreign currency to the nation (85% of fuel demand is imported & petroleum fuel is 25% of imports in value terms)
• Effective utilization of unfit to consume

INVESTMENT RATIONALE
 Favourable GOI policy (E20 program)
 Int subvention for project term loan cost already secured.
 Ethanol shortage in Southern states and commercially expensive to source from UP / Maharashtra
 Future cash flows predictable, stable and secured as state-owned oil marketing companies, are mandated to buy ethanol from local suppliers to meet E20 norms/ deadlines with annual price revisions linked with input feed stock.
 Equity IRR:50%+ Payback < 5 yrs.
 Company achieves debt free status by 31 March 2032