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Biodiesel Company Investment Opportunity in Lucknow, India

Biodiesel production company supplying biodiesel to oil marketing companies, seeks funds to expand business.

Established 10-20 year(s)
Employees 10 - 50
Legal Entity Private Limited Company
Reported Sales USD 2.87 million
Run Rate Sales USD 7 million
EBITDA Margin 12 %
Industries Biodiesel + 1 more
Locations  Lucknow
Local Time 5:01 PM Asia / Kolkata
Listed By Business Owner / Director
Status Active
Overall Rating
Partial Stake Sale
USD 2 million for 50.0% stake (Native Currency: INR 170,000,000)
Reason: We require investment to increase our working capital for biodiesel production, expansion of plant's... View More
Includes physical assets worth USD 700 thousand
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Business Overview
• We are an biodiesel production company, also providing laboratory testing for companies.
• Biodiesel contributes to major part of the total revenue generated.
• Our active clients are IOCL, BPCL and HPCL.
• Our total ethanol production per day is 30,000 litres/day.
• OMCs are buying biodiesel at INR 100/ litre which may increase even further.
• The government has set a target of 20% biodiesel blending by next year, according to which IOCL, BPCL, HPCL are purchasing all biodiesel produced in India at a pre-fixed rate.
• Due to being promoted by Govt Blending program, OMCs are liable to purchase all Biodiesel produced. This means that demand is virtually unlimited.
• We are empaneled with IOCL for 4 more years for supply of 30 ton per day biodiesel.
• We will collect raw materials such as palm stearin, cooking oils and leather from tannery, which will be tested in our laboratory before taking up for production.
• We also provide laboratory testing services for various government companies such as Hindustan, Pariksha thermal power plant, ALIMCO, NHPC, NTPC, Airport authority of India etc.
• Our laboratory testing includes water quality, air quality, stack emission. soil testing, sugar testing, alcohol testing etc. These contracts are valid for 2 years. The revenue from each contract is INR 3 lakhs per year.
• Currently, we are seeking investment to expand our capacity and increase the profit margins in biodiesel business.
• There are 15 permanent employees, additional contract/temporary employees are hired on need basis.
Products & Services Overview
Biodiesel is our top selling product. We have a 30 KLD capacity plant in Lucknow.
Our active clients are IOCL, HPCL and BPCL. Soon this list will have Reliance and Nyra also.
We also provide laboratory testing services for various Government companies such as Hindustan, Pariksha thermal power plant, ALIMCO, NHPC, NTPC, Airport authority of India etc.
Our laboratory testing includes water quality, air quality, stack emission. soil testing, sugar testing, alcohol testing etc.
Assets Overview
Physical assets include Biodiesel manufacturing boilers, ethanol production machineries, laboratory equipment, office furniture, computers.
Facilities Overview
Owned - Manufacturing plant area of 54,000 sq ft.
Rental - Laboratory combined with office space - 2,100 sq ft, with rent of INR 20,000 per month.
The rental agreement is valid for 1 year.
Capitalization Overview
The business is funded by the directors.
We have 4 shareholders, with ownership of 60%, 20%, 12% and 8%.
Currently, we have outstanding loan of INR 6 Crores, for a duration of 7 years and average annual interest rate of 14%.
Recent Activity
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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