Proposal for Sugar Project by House of Dawda

Executive Summary ...................................................................................................................................... 3

1. Plantation Development ....................................................................................................................... 4 1.1. 1.2. 1.3. 1.4. 2. 1.1 1.2 1.3 1.4 1.5 3. 2.1 2.2 4. 4.1 4.2 5. 5.1 5.2 5.3 Overview ....................................................................................................................................... 5 Development Strategy .................................................................................................................. 6 Cost and Revenues........................................................................................................................8 Community Development Initiative............................................................................................ 10 Design.......................................................................................................................................... 12 Sugar Process ..............................................................................................................................12 Major Plant Equipment & Technological Options ...................................................................... 14 Performance Parameters of Sugar Mill.......................................................................................18 Cost .............................................................................................................................................19 Design.......................................................................................................................................... 21 Cost .............................................................................................................................................24 Design.......................................................................................................................................... 26 Cost .............................................................................................................................................28 Project Cost.................................................................................................................................30 Means of Finance........................................................................................................................31 Integrated Project Financials ...................................................................................................... 32

Table of Content

Sugar Mill ............................................................................................................................................11

Cogeneration Power Plant .................................................................................................................. 20

Distillery ..............................................................................................................................................25

Indicative Financials and Deal Structure.............................................................................................29

Executive Summary
The House of Dawda plans to develop up to 12,000 hectares of fertile land in Uganda, which is suitable for sugar cane cultivation as well as other crops. The client wishes to establish a sugar cane plantation, sugar mill, power plant and distillery in order to optimize land usage. Currently, the land is under thick bush and the planned project includes clearing the entire land area and raising the sugarcane and an inter-crop to achieve stable yields at the end of three years. Construction of the mill, power plant and distillery will start in parallel and the commissioning is to coincide with the plantation achieving a stable output. Proposes to carry out a detailed feasibility study to assess the various aspects of the entire project and prepare detailed implementation plans for the plantation, mill, distillery and power plant. Based on an initial understanding, the entire plantation development should be done in 3 phases - 100 to 125 Ha (Phase 1), 1000 Ha (Phase 2) and 8000 Ha (Phase 3) to gradually increase the cultivated area and develop seeding capacities. Corresponding to the cane availability a 2500 TCD, 45 ICUMSA sugar mill which shall be expandable to 4000 TCD, an 18 MW power plant and a 40 klpd distillery should be installed. The production of sugar and other resulting by-products align with the Clients booming FMCG business and the consequent inhouse requirement of 55,000 T per annum of 45 ICUMSA sugar. Uganda is power deficit and the renewable power from the proposed power plant presents an opportunity to improve the power situation. The project is planned to have positive social, cultural and economic impact on the local communities and farmers. The entire project is expected to cost USD 125 MN in the base case and is expected to be financed at a debt equity ratio of 3:1. As land would be contributed in the form of equity, the equity investment required in cash would be USD 6.0 MN. The expected equity IRR from the project is in excess of 28%. The remainder of this document describes our initial understanding of the Project and the scope of work to prepare a detailed implementation plan.

1. Plantation Development

Overview
The sugar cane plantation is one of the key parts of the entire project and one on which the success of the entire project hinges. Sugar cane is a complex crop exhibiting intricate patterns in terms of yield, quality, maturity time, disease resistance and water requirement. Being a subtropical crop that undergoes vegetative propagation, the plantation performance will be dependent on temperatures, rainfall, weather cyclicality and soil type. Sugar cane performs best when there is no water logging and the local weather has a distinct winter season at the time of harvesting. Each hectare of plantation requires 6-7 tonnes of seed. The sugar cane seed is a small piece of stem taken from an 8-10 month old sugar cane plant. The entire 8000 hectare land area would hence require around 48,000 tonnes of seed. At full scale, the plantation will have a work force of up to 20,000 workers and large inventory of farm equipment. Clearing the land initially and preparing it for farming would require significant effort and would take around a year to clear depending on the resources mobilized. The plantation will have to be structured and planned in such a way that the right ratoon mix is available when the mill, power plant and distillery become operational. The entire plantation will take around three years to develop and mature. The plantation strategy that is developed should include the following aspects: The capital requirement for the plantation activity should be minimized. If possible, there should be a source of cash flows in the interim period while the land is cleared and the plantation is being developed. The timing of the first harvest from the fully developed plantation should coincide with commercial operations date of the mill. The varieties chosen must be optimized from the maturity, cane yield, sugar yield and disease resistance perspectives. The best agricultural practices should be incorporated, and agricultural research capability should be built. Local resources should be trained and developed to maximize employment opportunities and accelerate local economic development in Uganda.

1.1.Development Strategy
WE proposes to develop the entire plantation in phases and build up capacities in such a way that each of the critical issues is addressed. The phased approach would minimize the upfront requirement of capital and also enable an interim cash flow by utilizing the cleared land for alternate crops e.g. potatoes, sunflower etc, and for inter-cropping. Inter-cropping basically involves simultaneous plantation of another crop along with sugar cane. The inter-crop is usually smaller in height and is either capable of fixing nitrogen in the soil or at least is less nitrogen intensive, thus complementing a nitrogen intensive crop like sugar cane. The distance between two rows of sugar cane is ideally around 4 feet and the intermediate space can be used for the development of the inter-crop. There are various intercropping options for sugar cane which include wheat, soyabean, lentils, potato, maize and other vegetable crops. There may also be more exotic high value crops (such as medicinal herbs), which would be identified and assessed in the feasibility stage. The complete plantation would require about 48000 tonnes of seed (6 tonnes / hectare). It would be logistically difficult to import / source this quantum of seeds from external sources. Each hectare of 8-10 month old sugar cane can provide seeds for another 10 hectares of land. In the phased implementation approach, with an expansion factor of 8-10x, the entire plantation can be initiated by sourcing a manageable 750 tonnes of seed. The mill, power plant and distillery would need about 2 years to implement. WE anticipates commencement of construction of these at the end of the first year. In the three-phase development, it would take approximately three years to produce the first full yield of sugarcane on the entire plantation. Thus the phased approach would result in the plantation generating the first full crop coincident with the commissioning of the other parts of the project. Based on above considerations, WE proposes to implement the plantation in 3 phases, each of approximately 1 year duration.

Phase 1: In phase 1 around 100-125 hectares of land will be cleared and the sugar cane will be planted. The seed for this phase (around 600 750 tonnes) would be either procured locally or imported based on optimum variety suitable for the site, the quarantine/import restrictions, and cost considerations. The clearing and planting in the 100-125 hectares would be done as soon as the Client gives a go ahead for the project and makes the land available. The right intercrop based on the local climatic conditions, soil type, maturity period and market rates would also be planted along with the sugar cane to establish cash flows and recoup some of the investment. Once financial closure is achieved (in about 4-5 months), another 900 hectares of land required for plantation in phase 2, would be cleared. Alternate crops of shorter maturity cycle would be planted as and when the land becomes available for agriculture. This phase shall also include standardization of agronomic practices, man power training and computerization of the cane management system. Phase 2: Phase 2 would involve sugarcane plantation on 1000 hectares (including the land planted in phase 1). The sugarcane harvested from phase 1 would be used for seeding in phase 2. The inter-cropping strategy explained in phase 1 would be replicated in phase 2. In this phase the remaining 7000 hectares of land would be cleared. Alternate cropping strategy for this additional land would be followed. Phase 3: In phase 3, sugar cane would be planted on the 8000 hectares using the seed from phase 2. Inter-cropping would be carried out. At the end of this phase the entire plantation would be developed and the first full crop would be ready for harvesting.

The following is the cultivation plan for the plantation:

1.2.Cost and Revenues

The plantation economics in the development phase revolve around the choice and realization from the inter-crop. Apart from the agro-climatic feasibility of each option, the commercial viability of the crop and its demand in the local scenario will affect the cash flows from the land. A rough estimate of the revenues from inter-cropping is USD 2500/Ha/year. This will be verified and pinpointed more accurately in the feasibility study. Land clearing and development will cost approximately USD 1000/Ha. Land development shall include leveling, fencing and construction of preliminary irrigation infrastructure. A suitable gradient is required to facilitate land drainage and irrigation. The cost of planting cane is expected to be around USD 1150/Ha. Cane planting cost includes cost of seeds, fertilizer, manpower, electricity and other expenses in raising the crop. The cost of planting the inter-crop is expected to be also around USD 1150/Ha and includes the cost of seeds, fertilizer, manpower, electricity and other expenses.

1 Yr

100-125 Ha

8-10 x

1 Yr

1000 Ha

8-10 x

1 Yr

8000 Ha

An indicative financial estimate of the plantation is shown below. These figures are preliminary and more accurate figures will be developed post assessment of the site and local conditions: Phase 1 - 125 Ha Clearing Cost @ $1000/Ha (includes clearing of land required in next phase) Cane Plantation Cost @ $1150/Ha Intercrop Plantation Cost @ $1150/Ha Equipment Cost (Tractors, Ploughs, Harrows, Rotavators, Ridgers Total Cost* Inter-crop Revenues Net Capital Required*
*Not including cost of land

Phase 2 - 1000 Ha

Phase 3 - 8000 Ha

$ 1.0 Mn

$ 7.0 Mn

$ 0.14 Mn $ 0.5 Mn

$ 1.15 Mn $ 4.1 Mn

$9.2 Mn $ 9.2 Mn

$ 0.1 Mn

$ 0.8 Mn

$ 7.5 Mn

$1.8 Mn $1.0 Mn $0.8 Mn

$13.0 Mn $8.5 Mn $4.5 Mn

$25.9 Mn $20.0 Mn $5.9 Mn

1.3.Community Development Initiative

Sustainable community development is a concept that has to be deeply ingrained with the entire project plan and in its entirety should depict a pathway to greater societal development. This project will generate substantial local employment, and therefore needs to cater to the needs of the community that will form around it. Specifically, health and education services need to be available and accessible to all, and proper training facilities to prepare the man power are essential. The project envisages setting up a world class agricultural research institute aimed at improving and inculcating strong agricultural practices among the local farmers. It will also aim to develop a knowledge base that incorporates local experiences and cropping patterns. The institute will be home to agricultural scholars who will develop and integrate the implementation of efficient agricultural practices in the plantation that is to be developed. A hospital that offers quality healthcare and a school shall also be set up as part of the community development initiative to strengthen the community participation. A green buffer zone of around 2 km width around the project area will be proposed to mitigate any of the negative impacts by the project on the bio-diversity. The expected area of the recommended green buffer zone will be around 80 - 100 sq km. These initiatives will be designed and the associated costs would be estimated in the feasibility study.

2. Sugar Mill

1.1 Design
Based on the sugarcane availability the sugar plant should be designed for a capacity of 2500 TCD1 expandable to 4000 TCD. It will have appropriate equipment for cane handling, juice extraction, boiling house, centrifugals and bagging house with the best technologies and equipment available in the world. The sugar mill shall produce refined 45 ICUMSA sugar and will consist of special melters, clarifiers, pans and centrifuges to get the desired purity. The following table shows the sugar mill operation under various scenarios of cane availability:
Area of Plantaion (Ha) 8000 9000 10000 11000 12000 Cane Yield (T Per Ha) 80 90 100 100 100 Cane Available (Tonnes) 640000 810000 1000000 1100000 1200000 Operation Days 270 270 270 270 300

TCD 2500 3000 3500 4000 4000

A 2500 TCD mill can achieve a crushing of 3000 TCD if operated and maintained as per norms. Thus a 2500 TCD mill is sufficient crush the yield from the captive plantation and the yield from out croppers (out croppers farm 1000 Ha). Once the out cropping exceeds 1000 Ha, the mill shall be expanded to 4000 TCD.

1.2

Sugar Process

Harvested sugar cane from the fields is piled, picked up, tied, and transported to the sugar factory by trucks. In the plant, a cane carrier carries the cane to the preparatory devices such as Kicker, Leveler, and Shredder, where the cane is cut into pieces and the prepared cane is fed into the milling tandem to extract the juice. The material left after extracting the juice is called bagasse and is used as fuel in the boilers for steam generation. This steam generated is used in the turbine to generate power. Part of the steam from the turbine is used for process heating requirements. The sugar-cane juice is heated to around 65-70oC in the juice heater. Then it is passed on to the juice sulphitor, where simultaneous addition of milk of lime and SO2 gas is done. The first sulphited juice is again heated to around 102oC and the mud is allowed to settle in a continuous clarifier. The clear juice is drawn out and mixed with the mud. The muddy juice, filterate, is
1

Tons of Crushing per Day

taken for re-processing, whereas the left out mud or filter cake is sent out and is utilized as manure for fields. The clear juice contains around 70% water. This water is evaporated in a series of vessels called Evaporator bodies. The concentrated juice coming out of the last body evaporator is known as syrup which has around 55-60 Brix2. This syrup is bleached once again by passing SO2 gas in the syrup sulphitor. The sulphited syrup is drawn to vacuum pans for further concentration and crystallization. The mixture of sugar crystals and mother liquor, massecuite3, is dropped into crystallizers. The massecuite from crystallizers is taken to a centrifuge for separation of sugar crystals and mother liquor. The mother liquor is again taken to the pan for re-boiling of second and third (low-grade) massecuite. The Molasses separated from the last massecuite is known as final Molasses, which is weighed and stored. This molasses is used in the distillation process for generation of alcohol. Sugar obtained from first grade massecuite is dried through hot and cold air blowers over the hopper. Grading of sugar is done through a grader and then it is bagged, weighed and stored. The following figure outlines the sugar process:

2 3

Measure of concentration of Sucrose Concentrated syrup

1.3 Major Plant Equipment & Technological Options

Cane Handling
Cane Unloading: Cane is unloaded on the conveyor from the truck using a crane. Cane Conveyor: Unloaded cane is passed on the conveyor to the kicker. Cane Kicker: This device helps the cane to flow smoothly on the conveyor by reducing the cane

size.

preparation relatively easy. Cane Preparation

Cane Levelers: It is used to cut the cane to a uniform level. This process makes the cane

Fiberizor: Cane is hammered to prepare it in the fibre form by disintegration of the cane so as to

facilitate efficient extraction of juice by the mills. There are 2 options available for Fiberizor Inline Shredder and Conventional Fiberizor. The following is the comparison between two possible options that exist:

An Inline Shredder would be a better option, given its advantages over a Conventional Fiberizor.

Mill Tandem: This is the combination of sets of rollers provided to extract juice from the fibrous

cane. Mills use a 3 roller set or a 2 roller (Mill Max) set or a combination of both for this process. The following is a comparison between the two:

Based on the above advantages, it is proposed to have a Mill Max in the primary and secondary mills since its performance is the best in primary extraction, and 3 roller mills for the 3rd and 4th mill positions.
Juice Heaters: These are used to raise the temperature of juice to make it more suitable for

addition of lime and sulphur-dioxide for better clarification. The following is a comparison between two possible options:

Based on the above advantages, plate type juice heaters would be ideal for the mill.

Clarification: Clarification is the process of removing impurities from the juice minimizing the loss of sucrose from it. The following is a comparison between two options:

Based on the above advantages, SRI Clarifier is proposed in the process.

Evaporation: It is the process of removing water from the juice and concentrating it. Clarified juice contains around 85% of the water. It is concentrated in a series of evaporators to convert it to syrup with 35% water. Quintuple effect with Flash recovery leads to significant reduction in the steam consumption and hence it is proposed in the process. Pan Boiling: In this process, thick juice goes to the vacuum pans where it is evaporated to super-

saturation. When the predetermined degree of super-saturation is reached, seeding takes place and the crystals are grown to the required size.

Based on the above advantages continuous pans would be ideal for the process.
Driers: Wet sugar is dried in the drying units to make it suitable for the packing. Fluidized bed

driers are the best option because of higher heat transfer, lower dust and gentle treatment of sugar.

Other Equipment Mill Drives: Drives are needed to run the mill tandem. Traditionally steam turbines are used to drive this heavy equipment but the steam used for this process can be used to produce power in the cogeneration plant. Modern mills utilize electricity powered drives to run the tandem. The electricity drives are of 2 types: AC drives and DC drives. The following is a comparison between all three options:

Based on the above advantages, AC drives are the best option.

1.4 Performance Parameters of Sugar Mill

Parameter

Performance
Min 90%

Remarks
It is the measure of the effectiveness of cane preparatory equipment like kicker, leveler and shredder It is the measure of effectiveness of mill tandem using a particular method (different methods are used for calculating this) It is the indication of moisture in the bagasse. Cogeneration plants are designed for 50%. Any reduction in this significantly increases boiler efficiency It is the measure of effectiveness of evaporators It is the measure of effectiveness of complete boiling house (% extraction of sugar available in mixed cane juice) It is the measure of steam consumed in the process as a percentage of total cane crushed It is the measure of effectiveness of vacuum filter (sucrose content lost with filter cake) Temperature of the sugar at the packing stage Moisture in the sugar at the packing stage

Preparatory Index (PI)

Reduced Mill Extraction (RME)

Min 96%(with 250% imbibitions)

Moisture % Bagasse

Max 50%

Effective Evaporation Reduced Boiling House Recovery(RBHR)

Around 80%

Min 90%

Steam % cane

34.5%

Pol % Filtercake

Max 1.5%

Sugar Temperature Sugar Moisture

Max 40 C Max 0.03%

1.5 Cost
The following is an estimated cost of a 2500 TCD mill expandable to 4000 TCD: S.No Description Price for machinery and equipment for juice extraction plant with in-line shredder juice installation and 4 Nos 36"X78" size millmax tandem Price for machinery and equipment for Boiling House suitable for 2500 TCD Sugar plant Price for machinery and equipment for Centrifugal Station suitable for 2500 TCD Sugar plant Civil Costs Total Price (Mn USD)

12.4

17.4

3 4

2.5 3.7 36.0

3. Cogeneration Power Plant

2.1 Design
The power plant design is based on the rankine cycle efficiency, cost considerations, metallurgy, operability, maintenance and specifications of similar bagasse based power plants. The following is a representation of the proposed cogeneration scheme:

Based on the information available, WE recommends a cogeneration plant of 18 MW capacity for the project. The following table shows the capacity utilization (operating days) and the output of the power plant in exportable units as the plantation and crushing capacity scale up:
Area of Plantation (Ha) 8000 9000 10000 11000 12000 Cane Yield(Per Ha) 80 90 100 100 100 No. of Units(Mn) Exportable 61.72 74.87 88.54 100 110

TCD 2500 3000 3500 4000 4000

Bagasse(TPD) 750 900 1050 1200 1200

Operation Days 270 280 310 330 330

In Ours opinion, the following are indicative specifications of the 18 MW power plant.

This plant is designed for 24 hours of operation and the sugar mill needs to be run accordingly to have uninterrupted supply of fuel. During off season, the stored bagasse will be used for power generation. The process steam requirement of the sugar plant is met from the steam extractions (High pressure and Low pressure) at two different stages of the turbines. Apart from this mill steam requirement, HP steam requirement and distillery steam requirement are also met from these extractions. After meeting the power requirements of the sugar plant, excess power generated by the power plant is exported to the grid. Transmission, and evacuation possibilities and costs will be assessed during the feasibility study. An HP heater is considered for the Co-gen plant from the point of view of a more efficient power cycle, which means lower fuel consumption per unit of power generated. Appropriate

water treatment plant along with RO and DM plants will have to be provided with suitable raw water storage tanks to meet boiler water specifications and make up water requirements. Systems like fuel handling, ash handling, switch yard, instrumentation air, control and instrumentation will be designed based on the layout. It is also proposed to have a DCS type data gathering and monitoring station, which will integrate the signals from boiler PLC, TG PLC and the signals from the BOP consisting of cooling tower fans, cooling water pumps, DM plant, water treatment plant and electrical system, so that the plant functioning can be monitored from the DCS panel.

2.2 Cost
The following is an estimate of the cost of an 18 MW power plant: S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Boiler Turbo Generator Fuel & ash handling system Dense phase ash handling system VFD Main Cooling tower, CW Pumps & Valves EOT crane Switchyard Transformers LT panels - MCC& PCC HT Panels-MCC&PCC LT Package including lighting and earthing LT contract & Busduct Cables Civil works& Chimney Distributed Control System, BOP-Instrumentation Piping & tanks Water treatment plant compressed air system Ventillation system Air conditioning system Fire fighting system Civil works Total Description Cost (Mn USD) 9.0 6.1 1.1 0.3 0.8 0.1 0.4 0.7 0.4 0.4 0.4 0.6 0.5 3.0 0.9 0.7 0.5 0.1 0.1 0.0 0.2 2.2 28.8

4. Distillery

4.1 Design
The following is the layout and process flow of a typical distillery:

Molasses storage and Handling: Molasses is stored in bulk storage and dry storage tanks of suitable capacity. The flow rate is measured with magnetic flow meters which are connected to a Programmable Logic Controller (PLC). Fermentation: It is a continuous fermentation process with suitable stainless steel tanks. These are provided with plate heat exchangers for cooling. Equipment like level monitor, automatic PH monitoring system, agitators and air blowers etc. are also provided to maintain the yeast population and to combat bacterial infection. A closed loop cooling tower system with an induced draftcooling tower with circulation pumps is planned to ensure higher cooling efficiency and to minimize water wastages.

Distillation: Multi-pressure vacuum distillation is used because of many inherent advantages with the technology. Primary column is of grid tray construction and the other columns are of superior bubble cap construction (bubble cap gives good tray efficiencies at different conditions). All these are connected and operated using PLC. Effluent Treatment: Effluent generated is around 400Cu.m/day with BOD of 65,000 mg/l and COD of 1, 20,000 mg/l. This High BOD/COD Spent-Wash that is the effluent of the distillery is treated aerobically in a closed digester and generated methane is captured in a controlled manner. The methane captured is combusted in a boiler for steam generation and further to generate power through a turbo-generator (used in the cogeneration boiler). It is proposed to put up a distillery of capacity 40,000 litres per day with 96% v/v Rectified Spirit as the main output. Molasses from the sugar mill is used as the raw material for this process. The following table shows the capacity utilization of the distillery as the plantation and crushing capacity scale up:
Area of Plantaion(Ha) 8000 9000 10000 11000 12000 Cane Yield(Per Ha) 80 90 100 100 100 Molasses Per Day (Tonnes) 100 120 140 160 160 Alcohol (KLPD) 30 36 40 40 40 Operation Days 270 270 284 324 340

TCD 2500 3000 3500 4000 4000

4.2 Cost
The following is a cost estimate of a 40 klpd distillery: S.No 1 2 Description Continuous Fermentation Multi-pressure Vacuum Distillation Utilities items like Cooling Towers, and Instrument Air compressor / Tubing, insulation ,painting Erection & Commissioning Pumps electrical instrumentation of storage section Water Treatment Plant Molasses Bulk storage Storage section for alcohol along with receivers MS Structure for Fermentation, Distillation, alcohol storage section Biomethanation Plant Civil Total 0.2 0.1 0.7 0.2 0.5 2.3 0.3 7.2 Cost (Mn USD) 1.1 1.3

3 4 5 6 7 8 9 10 11

0.2 0.3

5 Indicative Financials and Deal Structure

Project Cost
The total project cost has been estimated including revenue and cost of the alternate / intercrop and without including the same. The Project entailing plantation on 8,000 Ha, 2500 TCD Sugar Mill, 18 MW Co-gen Power Plant and 40 KLPD Distillery in both the scenarios is as follows: Item Land* Plantation Sugar Mill Cogen Plant Distillery Total * 8000 Ha @ USD 3125 / Ha Although WE plans to enable interim cash flows by following the alternate / inter-crop strategy, the same has not been assumed in the base case as a conservative estimate. Any cash flow generated from the alternate / inter-crop would be ploughed back in to the project and would reduce the project cost. Without inter-crop (USD MN) 25.0 27.5 36.0 28.8 7.2 124.5 With inter crop (USD MN) 25.0 11.5 36.0 28.8 7.2 109.0

The yearly phasing of the project cost for the base case is shown below USD MN Land Acquisition Plantation Project Cost Sugar Mill Project Cost Power Plant Project Cost Distillery Project Cost Project Cost Jan-Dec-11 25.0 1.5 26.5 Jan-Dec-12 9.0 18.0 14.4 3.6 45.0 Jan-Dec-13 17.0 18.0 14.4 3.6 53.0 Total 25.0 27.5 36.0 28.8 7.2 124.5

5.1 Means of Finance

The Project expected to be funded in the debt equity ratio of 75:25. With 75:25 debt equity ratio, the funding requirements of the Project is as follows: Debt Equity Total 93.5 31.0 124.5

The land would be valued at USD 3,125/Ha amounting to USD 25.0 MN for 8,000 Ha. This land will be contributed in form of equity for the Project in the name o company as 49 or 99 years lease agreement.

The annual phasing of funds that need to be invested in the project is shown below: USD MN Land Acquisition Plantation Cost Sugar Mill Cost Power Plant Cost Distillery Project Cost Project Cost Debt Debt Value Land Cash Equity Value Jan -Dec-11 25.0 1.5 26.5 0% 25.0 1.5 26.5 Jan -Dec-12 9.0 18.0 14.4 3.6 45.0 95% 43.2 2.0 2.0 Jan-Dec-13 17.0 18.0 14.4 3.6 53.0 95% 50.3 2.5 2.5 93.5 25.0 6.0 31.0 Total 25.0 27.5 36.0 28.8 7.2 124.5

5.2 Integrated Project Financials ;

We have calculated Project cash flows starting from CY11 (Jan-Dec) to CY 28 (3 years of plantation + 15 years of operations of Sugar mill, Co-gen Power Plant and Distillery). The combined financials for the Project are given below. In our base case analysis (i.e. without assuming intercrop plantation) the Project yields equity IRR of 28%

KEY PROJECT ASSUMPTIONS 1. PLANTATION Ha USD USD USD Ha Months Ha Ha Ha Ha USD USD Months T/Ha T/Ha T/Ha USD % 8,000 3,125 25,000,000 1,000 1,100 12 6,900 12 125 8 1,150 5% 10 70 80 90 25 5%

Land Area Land Value/Ha Land Acquisition Clearance Cost Land Clearance - Phase 1 Duration Land Clearance - Phase 2 Duration Sugar Cane Plantation (Seed Import) Sugar Cane Seed Yield Cost of Plantation including Labor Escalation on Plantation Cost Sugar Harvesting - Phase 1 Sugar Cane Yield - Dec 14 Sugar Cane Yield - Dec 15 Sugar Cane Yield - Dec 16 Sugar Cane Price Escalation on Sugar Cane Prices

2. TCD

SUGAR MILL T/Day USD USD Days Days Days % % USD USD USD/Kg kWhr/TC MW 2,500 14,400 36,000,000 224 256 288 8% 5% 25 5% 0.50 28 3

Project Cost / TCD Project Cost Operational Days - 1st Year Operational Days - 2nd Year Operational Days - 3rd Year onwards O&M Cost O&M Cost Escalation Cost of Sugar Cane Procurement Sugar Cane Cost Escalation Sugar Wholesale Price Sugar Mill Electricity Consumption Steam Consumption by Mill

3.

CO-GEN POWER PLANT MW USD USD Days Days Days % % USD USD % % kg/Kwhr 18 1,600,000 28,800,000 224 256 288 8% 5% 0.12 8.00 12% 5% 1.90

Capacity Project Cost / MW Project Cost Operational Days - 1st Year Operational Days - 2nd Year Operational Days - 3rd Year onwards O&M Cost O&M Cost Escalation Tariff CER Value Auxiliary Consumption Transmission and Other Losses Bagasse Fuel Consumption Norm

4. DISTILLERY Capacity Project Cost / MW Project Cost O&M Cost Ethanol Yield Ethanol Price Electricity Consumption - 1st Year

KLPD US$ US$ % lit/T US$/lit MW

40 180,000 7,200,000 8% 256 0.70 1.5

Mr Dawdas Thinking

USD MN Land Acquisition

Jan -Dec-11 25.0

Jan -Dec-12 -

Jan-Dec-13 -

Total 25.0

Land Will Be Acquired By Shree HasmukhBhai For Company In the name of Company , In East Africa land owned on 49 or 99 Years lease, This land may cost 500 $ per acre. Plantation Cost 8.5 6.5 9.0 1.5 ( 5M Revenue from Inter Crop) 17.0 7.5M From Inter Crop ( - 1M) 27.5

Inter Crop Cost

16 M Equty Required

4M-5M Hasmukh Bhai willing ( Arrange) to put as equity at this stage

Sugar Mill Cost Power Plant Cost Distillery Project Cost Project Cost

26.5

18.0 14.4 3.6 45.0

18.0 14.4 3.6 53.0

36.0 28.8 7.2 124.5

Means of Finance

The Project expected to be funded in the debt equity ratio of 75:25. With 75:25 debt equity ratio, the funding requirements of the Project is as follows: Debt Equity Total 93.5 31.0 124.5

The land would be valued at USD 3,125/Ha amounting to USD 25.0 MN for 8,000 Ha. This land will be contributed in form of equity for the Project in the name o company as 49 or 99 years lease agreement.