Comprehensive Research Document: Biomass & Wood Pellet Plant Project Report (SERVODAY Group)

1. Executive Summary

This research document provides an in-depth analysis of SERVODAY Group’s Biomass & Wood Pellet Plant Project Report, a comprehensive sample blueprint for establishing a pellet production facility in India. The report covers technical processes, financial modeling, loan structures, operational workflows, and market guidance tailored for entrepreneurs, investors, and financial institutions.

Key Takeaways:

  1. Project Type: Integrated biomass and wood pellet production plant.
  2. Capacity: 7,500–18,000 tonnes per annum.
  3. Total Project Cost: ₹3.8–5.0 crore.
  4. Financial Structure: 50% promoter contribution, 50% bank loan.
  5. Key Ratios: Gross profit ~28%, DSCR ~3.35, debt-equity < 0.15.
  6. Target Market: Domestic sales, with alignment to NTPC co-firing initiatives.

2. Project Overview & Specifications


Parameter

Details

Nature of Activity

Pellets from biomass & wood waste (agro-residue)

Annual Operating Days

250–300 days

Daily Production

24–60 tonnes

Land Required

~1.5 acres (45,000 sq. ft.)

Plant & Machinery Cost

₹2.21–3.5 crore

Total Project Cost

₹3.8–5.0 crore

Promoter Contribution

50%

Bank Loan

50% (incl. term loan + working capital)

3. Technical Process Flow

3.1. Raw Material Preparation

  1. Bale Breaking System: Wide hopper, automatic feeding, clog prevention.
  2. Material Transfer Conveyor: VFD-controlled, safety mechanisms, dust-minimized design.

3.2. Chipping & Shredding

  1. Biomass Chipper: High-strength blades, hydraulic infeed, real-time monitoring.
  2. Inclined Conveyors: Adjustable incline, heavy-duty construction.

3.3. Material Handling & Storage

  1. Automated Storage: Hydraulic discharge, humidity/temperature sensors.
  2. Wet Material Transfer: Self-cleaning, clog-resistant design.

3.4. Drying Process

  1. High-Efficiency Dryer: Biomass/natural gas/electric heating, heat recovery.
  2. Moisture Evaporation System: High-temperature air injection, exhaust filtration.

3.5. Grinding

  1. Hammer Mill System: High-speed rotors, air-assist dust collection, automatic screen changer.

3.6. Pelletizing

  1. Conditioning Unit: Steam/moisture integration, adjustable mixing.
  2. Pellet Mill: Gear-driven, dual-roller compression, quick die-change system.

3.7. Cooling & Fines Separation

  1. Counterflow Cooling: Ambient air cooling, low energy consumption.
  2. Vibratory Screening: Fine separation, integrated dust collection.

3.8. Storage & Bagging

  1. Modular Silos: Corrosion-resistant, expandable.
  2. Automatic Bagging: High-speed weighing, sealing, labeling.

3.9. Ancillary Services

  1. Motor Control System (MCS): PLC-based automation, SCADA integration, energy management.
  2. Safety Features: Emergency stops, overload protection, fault detection.

4. Financial Analysis & Projections

4.1. Cost of Project & Financing (Base Year: 2021)


Item

Amount (₹)

Land

90,00,000

Building

25,00,000

Plant & Machinery

2,11,80,000

Other Assets

12,50,000

Stock (Raw + Finished)

40,00,000

Total Project Cost

3,80,00,000


Means of Finance

Amount (₹)

Promoter Contribution

1,90,00,000

Term Loan

1,50,00,000

Working Capital Limit

40,00,000

Total Financing

3,80,00,000

4.2. Profit & Loss Projections (8 Years)


Year

Sales (₹)

Net Profit (₹)

Net Profit Margin

2021

2.16 Cr

21.33 L

9.88%

2022

4.32 Cr

44.03 L

10.19%

2023

4.67 Cr

49.33 L

10.57%

2024

5.10 Cr

53.95 L

10.57%

2025

5.62 Cr

59.75 L

10.64%

2026

5.86 Cr

61.86 L

10.56%

2027

6.21 Cr

66.22 L

10.66%

2028

6.57 Cr

72.03 L

10.97%

4.3. Key Financial Ratios


Ratio

Average

Trend

Gross Profit Ratio

28.08%

Stable

Operating Profit Ratio

14.71%

Stable

Net Profit Ratio

10.50%

Slight growth

Debt Service Coverage (DSCR)

3.35

Strong coverage

Debt-Equity Ratio

< 0.15

Low leverage

Current Ratio

1.77

Healthy liquidity

4.4. Loan Repayment Schedule

  1. Loan Amount: ₹1.5 crore
  2. Interest Rate: 10% p.a.
  3. Tenure: 84 months (7 years)
  4. EMI: ₹2,49,018
  5. Total Interest Payable: ~₹59.17 lakh

5. Market & Operational Guidance

5.1. Raw Material Sourcing

  1. Primary Sources: Agro-residues (straw, bagasse, rice husk), wood waste, sawdust.
  2. Procurement Regions: Across Indian states (guidance provided).

5.2. Sales & Distribution

  1. Primary Market: Domestic (industrial, NTPC co-firing).
  2. NTPC Tenders: Key opportunity for pellet supply.
  3. Export Potential: Not highlighted in this report.

5.3. Location Strategy

  1. Proximity to raw material sources & industrial consumers.
  2. Guidance provided for profitable locations in India.

5.4. Subsidies & Grants

  1. Government schemes for biomass projects referenced.
  2. SERVODAY offers guidance on subsidy availing.

6. Strengths of the SERVODAY Model

  1. Integrated Turnkey Solution: End-to-end plant setup.
  2. Automation & Efficiency: PLC/SCADA control, energy-efficient systems.
  3. Financial Viability: Strong projected returns, low debt dependency.
  4. Market Alignment: Ties to NTPC co-firing demand.
  5. Scalability: Modular design allows expansion.

7. Risks & Considerations

  1. Raw Material Volatility: Price & availability fluctuations.
  2. Moisture Management: Critical for pellet quality.
  3. Regulatory Compliance: Environmental & safety norms.
  4. Market Dependency: Reliance on domestic industrial demand.
  5. Financial Assumptions: Based on projections; actuals may vary.

8. Conclusion

The SERVODAY Biomass & Wood Pellet Plant Project Report presents a detailed, bankable, and technically robust proposal for entering the growing biomass pellet industry in India. With clear financial projections, efficient process design, and alignment with national energy co-firing policies, the project offers a viable and sustainable business model for investors and entrepreneurs.

9. Recommendations

  1. Feasibility Study: Validate local raw material availability & pricing.
  2. Financial Due Diligence: Cross-check projections with market rates.
  3. Regulatory Check: Ensure compliance with state & central guidelines.
  4. Partner Engagement: Engage with NTPC & other industrial buyers early.
  5. Technology Review: Assess SERVODAY’s tech support & warranty terms.

Document Prepared By: Research & Analysis Team

Date: October 26, 2023

Source: SERVODAY Group – Sample Project Report (2024)

Contact: +91 73834 10723

Click to download Pellet Plant Project Report: https://woodpellet.in/bot/request-project-report