TEV Study For Bamboo Project

INTEGRATED BAMBOO PROJECT
2013
TECHNO-ECONOMIC VIABILITY REPORT
ARTISAN BAMBOO PRODUCTS PRIVATE LIMITED

Prepared By
3NS Capital Ventures Pvt. Ltd.

LIMITED
January, 2013
Strictly Confidential
Table of Contents
Section 1:
Introduction
1.1. Executive Summary
1.1.1 Background
1.1.2 Project Rationale
1.1.3 Sector Outlook
1.1.4 Project in a Nutshell
1.1.5 Cost of the Project
1.1.6 Brief Financials of the Project
10
1.2. Project at a Glance

Section 2:
Section 3:
11
Objective of the Report and Introduction to the Proposal

2.1. Objective & Scope of the Report
14
2.2. Key Findings & Recommendations
15
2.2.1 Management Analysis Conclusion
15
2.2.2 Technical Analysis Conclusion
15
2.2.3 Business Analysis Conclusion
17
2.2.4 Financial Analysis Conclusion
17
Management Analysis
3.1. Promoters & Board of Directors
19
3.2. Key Management Team
22
3.3. Background of the Main Parent Company
24
3.3.1 Holding Structure

3.4. Organisation Chart & Mission
3.4.1 Mission of the Organisation
Section 4:
Page
24
25
25
Industry Analysis
4.1. Evolution of Bamboo Based Industry
27
4.2. Bamboo: Introduction
28
4.2.1 What is Bamboo
28
4.2.2 Attributes
28
4.3. Uses of Bamboo
32
4.3.1 Culm Based Products
32
4.3.2 Industrial Based Products
32
4.3.3 Other Uses
34
4.3.4 Additional Benefits from Bamboo
36
4.3.5 Bamboo vs. Hardwood Trees
37
4.4. Global Bamboo Industry Scenario
40
4.4.1 Evolution
41
4.4.2 Main Markets for Bamboo
41
4.4.3 Market Potential
44
2|Page - Artisan Bamboo Products Private Limited-TEV Report
January, 2013
4.5. Distribution of World Bamboo
45
4.6. Indian Scenario
48
4.6.1 Bamboo Industry in Tripura

4.7. Government of India Tax Subsidies in North East Region
4.7.1 NEIIPP, 2007
Section 5:
49
51
51
Technical Analysis
5.1. Project Objective
54
5.2. Location & Site Details
55
5.2.1 Location
55
5.2.2 Site Details
56
5.2.3 Demographics
56
5.2.4 Climate
57
5.2.5 Transport
57
5.2.6 Locational Advantage
58
5.2.7 Approvals & Permissions required
58
5.3. Approach & Availability of Land
59
5.3.1 Land for Tissue Culture Lab
59
5.3.2 Land for Proposed Factory
60
5.4. Total Cost Estimation
61
5.5. Infrastructure & Environmental Considerations
62
5.5.1 Water Availability
62
5.5.2 Power Availability
62
5.5.3 Environmental Considerations
62
5.6. Project Implementation Schedule
65
5.7. SWOT Analysis
66
5.8. Socio- Economic & Environmental Impact
69
5.9. Initiatives for Agri Business Development for Tripura Tribes

with Government of Tripuras assistance
5.10. Plants & Equipments
Section 6:
71
73
5.10.1 Plant Design
73
5.10.2 Equipment Supply Contracts
73
5.10.3 Note on the Technology
76
5.11. Availability & Requirement of Workforce
79
5.12. Bamboo Value Capture
80
Business Viability
6.1. Tissue Culture & Nursery
83
6.1.1 Tissue Culture Lab Development of Saplings
84
6.1.2 Technological Tie up for Development of Saplings in Tissue Culture Lab
85
6.1.3 Proposed Planting Scheme - Key Support Activity for Manufacture of

Bamboo based Fiber Boards
86
January, 2013
6.1.4 Key Raw Material for Tissue Culture
87
6.1.5 Sales Analysis of Saplings & Viability
88
6.2. Manufacture of Bamboo based Fiber Boards

6.2.1 Plan of Manufacture
90
6.2.2 Manufacture of Fiber Boards Quality Checking Procedure
90
6.2.3 Manufacture Process Flow Chart
93
6.2.4 Plant & Machinery and Vendors
94
6.2.5 Raw Material Analysis
95
6.2.6 Market Viability and Selling Strategy
97
6.3. Manufacture of Flat Package Furniture
Section 7:
89
98
6.3.1 Products Planned
98
6.3.2 Manufacturing Process
99
6.3.3 Plant & Machinery Flat Furniture Package Manufacturing
100
6.3.4 Key Raw Material Analysis
101
6.3.5 Market Viability and Selling Strategy
102
Financial Analysis of the Project

7.1. Project Sources and Usage Analysis
109
7.1.1 Land
110
7.1.2 Buildings
110
7.1.3 Plant & Machinery
111
7.1.4 Miscellaneous Fixed Assets
111
7.1.5 Working Capital Funds
113
7.1.6 Securities & Deposits
114
7.1.7 Pre-operative Expenses
114
7.1.8 Contingency
114
7.1.9 Interest during Construction
115
7.1.10 Apportionment of IDC
117
7.1.11 Means of Finance
118
7.2. Term Loan Disbursement & Repayment Schedule

7.2.1 Working Capital Loan
118
119
7.3. Revenue Analysis
119
7.3.1 Nurseries
119
7.3.2 Main Board
120
7.3.3 HDF
121
7.3.4 Furniture
121
7.4. Raw Material Cost
121
7.4.1 Nurseries
121
7.4.2 Main Board
122
7.4.3 HDF
122
7.4.4 Furniture Plant
123
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7.5. Capex & Depreciation
123
7.6. Capital Subsidy
125
7.7. DSCR
126
7.8. Break Even Point
126
7.9. Projected Profit & Loss Account
128
7.10.Projected Balance Sheet
129
7.11.Cash Flow Statement
130
List of Annexure:
Annexure 1:
Site Master Plan
132
Annexure 2:
IMA Plant Layout
133
Annexure 3:
Diffenbacher Plant Lay-out
134
Annexure 4:
Bamboo Board Result
135
Annexure 5:
Tissue Culture Lab- Current Infrastructure
137
Annexure 6:
Technology Tie up for Tissue Culture Lab and Growing of Saplings
138
January, 2013
SECTION
1:
INTRODUCTION
January, 2013
1. 1. Executive Summary
Artisan Bamboo Products Private Limited is floated for the purpose of setting up of an Integrated
Bamboo products plant in Tripura, India. The Project has been envisaged by Artison Investments
Ltd., a US based holding company promoted by successful entrepreneurs investing in technology
which focuses on environment friendly products. Promoter Group has extensive experience in
working in multi geographical locations with different technologies and tools and has successfully
run companies from concept to profitable exits. The activities of the promoter group are spread
across America, Europe and Asia. The company operates under the leadership of Mr. Debopam
Mukherjee who has a proven track record in wide ranging multinational business ventures.
1.1.1 Background
With increasing global attention towards the potentially devastating effects of climate change,
there has been a renewed focus on the role of deforestation and land use change. Fuelled by an
ever growing demand for wood products, tropical deforestation continues to increase at an
alarming rate. To successfully reverse the current trends of deforestation and forest degradation,
it is imperative that market demands for wood and timber products that cause such land use
change are addressed. In view of this, Artison, has invested in developing the know how to
replace wood based boards (Particle Board, MDF, HDF and OSB) by bamboo. The Company has
proposed to set up a 100% EOU (Export Oriented Unit) which will manufacture Bamboo based
HDF Boards, MAIN Boards and Flat package Furniture Modules.
1.1.2 Project Rationale

The project shall have an immense role to play in the Indian as well as the Global context. The
benefits from the project can be summarized as
I. Employment Generation at rural level More than 3000 persons will be directly and
indirectly engaged in the project activities.
II. Socio-economic Development of Backward Areas- The project envisages uplifting the living
standards of tribals, rural farmers and employees through income generation, social and cultural
activities.
III. Environmental Benefits- Bamboo produces over 35% more oxygen than trees, generating a
significant increase in carbon sequestration. Bamboo grows merrily in degraded and barren land
January, 2013
and can be used as windbreaks and erosion control. Compared to popular hardwoods like Teak
and Sal which take 100 years to mature, bamboo matures and becomes industrially usable in 4
years.
IV. Trend Setter The integrated bamboo project will become a model industry for many other
entrepreneurs / industrialists, especially in the forestry & wood sectors in India and other
developing countries.
1.1.3 Sector Outlook

A detailed survey conducted on the domestic market potential of India stated that apart from
traditional uses of bamboo in household and construction, bamboo can substitute wood in various
applications. The market size in India for all the above items is expected to be over Rs. 26,000
crores by the year 2015. This is in addition to already existing USD 400 million.
The world market for Bamboo & bamboo based products has been estimated at USD 20 billion
i.e. Rs 90,000 crores by the end of 2015 (Source: Market Report by Bamboo Mission & SS Maiti.) India
is slated to be one of the major players in this developing market. Global organizations like IKEA,
Habitat, The Body Shop, Oxfam and others have been big bulk buyers of such organic products due
to the high demand of organic and natural substances all across the world.
1.1.4 Project in a Nutshell

The Company has proposed to set up an integrated facility comprising downstream and upstream
activities at an estimated cost of USD 121.35 MM in Dharmanagar, Tripura. The integrated
facilities will consist of;
a. Nurseries & tissue culture laboratories with a capacity of producing 6.0 million saplings per
annum.
b. Bamboo based Fiber Board plant 1 having a capacity of 120,000 m3 per annum
c. Bamboo based Board plant having a capacity of 108,000 m3 per annum
d. Furniture plant having a capacity of 40,000 m3 per annum.
The whole project will take around 24 months for implementation. However, the tissue culture lab
and Furniture plant will start generating revenues from 12th month onwards.
The complete project will be set up on a 47 acres contiguous piece of land at Dharmanagar, which
is allocated by Government of Tripura for the project. The land was developed by Govt of Tripura
January, 2013
as an industrial park where total area is fully walled with electricity and water connectivity.
Dharmanagar is the closest place for getting the raw material supply not only from Tripura but
from Assam, Mizoram and Manipur. Its proximity to Bangladesh Market and the nearest seaport
Chittagong for export shipment are added advantages.
1.1.5 Cost of the Project

The project will cost around USD 121.35 MM which is proposed to be spent on following heads;
COST OF THE PROJECT:
Nurs.
&
Main
Board
HDF
Board
Furniture
Total
Lab
Plant
Plant
Plant
Budget
Land & Land Development :
0.24
0.75
0.25
2.24
Buildings :
0.08
20
10
34.08
16
16
10
43
0.14
2.23
2.23
1.4
6.0
0.05
0.1
0.1
0.25
Plant & Machinery
Miscellaneous FA :
Securities & DepositsPre-Operative
0.1
3.5
5.4
11
Working Capital Margin
0.04
1.84
3.51
3.46
8.86
Contingency Reserve Fund
0.17
4.6
3.4
1.83
10
IDC
5.93
Total
1.77
47.72
39.49
26.44
121.35
The Project is to be financed in the ratio 70:30 through debt and equity. The Net-worth of the
Promoters is sufficient to bring in the required funds. Besides, Government of Tripura has
committed to subscribe to 2% of the equity capital.
1.1.6 Brief Financials of the Project

USD MM
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Revenues
26.4
103.9
233.2
234.1
234.1
234.1
EBITDA
5.1
19.8
53.3
54.2
54.2
54.2
PAT
1.8
5.7
28.1
29.8
31.4
34.1
Debt
51.4
75.5
56.6
37.8
18.9
0.0
Equity
22.0
36.4
36.4
36.4
36.4
36.4
BEP
52.9%
61.9%
31.5%
28.7%
24.7%
24.7%
DSCR
3.78
1.07
1.56
1.64
1.76
1.90
January, 2013
As per the calculations, the project will have project IRR of 18.32% and payback period of 5 years.
While preparing the financials, conservative and sanitized assumptions have been considered. The
project is entitled to 100% income tax exemption under the Income Tax Act, India, 1961, however
MAT is considered.
10 | P a g e - A r t i s a n B a m b o o P r o d u c t s P r i v a t e L i m i t e d - T E V
Report
January, 2013
1.2. Project at a Glance

1
Project
Setting up of a 100% EOU plant

to manufacture Bamboo based
Fiber Boards & Flat Furnitures
in Tripura & establishing state
of the art Tissue Culture Lab to
grow bamboo saplings
Promoters
Artisan Bamboo Project Private

Limited.
Plant Capacity
Nurseries
6 Million Pa Saplings
Fiber Board Plant
120000 M3 Pa.
High Density Fiber Board 108000 M3 Pa.

Plant
Flat Furniture Plant
5
Location
40000 M3 Pa.
Dharmanagar, Tripura, India
Latitude
24.37 A0 N
Longitude
92.17 A0 E
Site
Dharmanagar, Tripura
Nearest Railway Station
Dharmanagar
Nearest Town
Dharmanagar
Nearest Airport
Agartala, Guwahati, Silcher
National Highway
NH 44
Altitude
32 m
Climatological data
Nearest
Meteorological Guwahati
station
Rainfall (annual)
229 Inches (Avg)
Temperature
Report
January, 2013
Land Requirement
Max.
40 degree C
Min
19 Degree C
Plant & Factory
40 Acres
Plantation
40 Acres
Source of Water
Natural Springs, Rain water
10
Water Requirement
2000 Liters/per day
11
Total Project Cost
$121.35 Million
12
Project Turnover
13
Total Fixed Assets
$ 89.32 Million
14
Direct
3000 people
&
Indirect
at Optimum Level
$234.11 Million
Employment
15
Payback Period
5 Years
16
Project IRR
18.32%
17
Break
Even
Point-
24.7%
Stabilised
18
DSCR (Average)
1.64
Report
January, 2013
SECTION
2:
Objective of the Report and

Introduction to the Proposal
Report
January, 2013
2. 1. Objective & Scope of the Report

The objective of the report was to conduct the Techno Economic Viability Study on the proposed
integrated Bamboo project of M/S Artisan Bamboo Products Private Limited.
The study was aimed at providing critical inputs to the Financial Institution, Banks & other
lenders on the basis of analysis of the Management & Technical, Commercial and Financial
viability. The Report is intended to be an enabler for decision making to these Institutions. The
proposed project was studied by 3NS on following lines;
Management Analysis
Business Analysis
Technical Analysis
Financial Analysis.
The report is based on the information provided to us by the Promoters of M/S Artisan Bamboo
Products Private Limited, subsequent discussions & data gathered from primary and secondary
market research.
The Financial Projections presented in the report are solely based on our understanding of the
market forces and discussions with the promoters. While due care is being taken to sanitize them
to the extent possible, however, they represent the estimates at current market conditions. They
may change in response to the change in underlying assumptions. We also confirm that the report
has been studied by the management of Artison Bamboo Products Private Limited and they have
confirmed it does not contain any factual error or inaccuracy. We have used MDF/PB/Main
Board interchangeably throughout the report.
Artisan Bamboo Products Private Limited, Tripura is the 100% subsidiary of the Artison
Investments Limited, a company registered in Nevada, USA (AILUS).This is the first operating
subsidiary registered in India and is proposing to set up a plant to develop Particle Boards, Main
Boards (HDF and OSB) by using BAMBOO in Tripura.
The project uses State-of-Art German technology for manufacturing various products derived
from Bamboo (furniture, flooring, wall paneling, etc). This is a 100% EOU, but the Company also
has the mandate to work for domestic furniture makers. The Promoters have already lined up
North American and Western European buyers such as Wal-Mart and IKEA. The Company is also
looking to develop the markets in Japan and Korea.
Report
January, 2013
2. 2. Key Findings & Recommendations
The project was studied on different parameters. The project is found viable considering the
management experience, the amount of R&D and research work undertaken by the promoters of
the Company and financial & business parameters.
The establishment of project is backed by Tripura Government which has undertaken to subscribe
to 2% of the equity capital. As explained by the management, the Government will provide all
clearances under single window scheme. The Company is entitled to 30% capital subsidy of
Investment in Plant & Machinery; and revenue subsidy for transport expenditure for raw material
and finished products.
2.2.1 Management Analysis Conclusion

The management of the Company is backed by Debopam Mukherjee who is a seasoned serial
entrepreneur and has the required experience of scaling up the business. We believe the
management has the required bandwidth in terms of execution of the project and operations.
However, none of the top managerial personnel has prior experience in any segment of Bamboo
Industry. We were explained that the Company is in the process of hiring key managers with
primary experience in the sector to add more bandwidth. Data collected from secondary sources
indicates that there is no dearth of experienced talent in India especially in the Eastern Region.
2.2.2 Technical Analysis Conclusion

The project was studied on the following parameters.
-
Location
Infrastructure availability
Plant & Machineries
Clearances & Approvals
Environmental Impact
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January, 2013
The project is ideally located in Tripura, India due to the availability of raw materials, & proximity
to the Port of Chittagong, The state has sub-tropical climate with sufficient rains. The past records
show no sign of climatic adversity in the region. However, the entire geographic area is prone to
Earthquakes as it is situated on seismic zone V. Also, the State is surrounded by Bangladesh and
aerial distance to Bay of Bengal is less than 100 KM hence the entire landmass of the State is
prone to high wind and is considered cyclone zone-A which is very high damage risk zone (Source:
Tripura Disaster Management Authority.) The Company has assured that the structure of the plant is
designed to withstand the atmospheric vagaries. Due to it being highly technical in nature, we
were unable to verify the same.
The Factory site is easily approachable by rail, road and air. The water and power requirements
are taken care of and there is availability of gas for the project. Additionally the Company is going
to install solar panels and undertake rain water harvesting. There is no adverse environmental
impact as the project is green in nature. The Company explained that the proposed project will
reduce CO2 emissions.
The company has collaborated with the plant suppliers to gain the requisite know how. The
machinery will be supplied with required technical support. The project does not require complex
technology. The technology has been well proven all over the world and the equipments suppliers
are global leaders in the respective categories. The manpower requirement for the project,
considering the size and scale, is relatively small. The machineries are semi-automatic. The skilled
and unskilled manpower is abundantly available in the region where the project is proposed.
The clearances and approvals are in preliminary stage with the company yet to apply for major
approvals. The Company has assured that the approvals application process has been initiated and
all the key approvals will be gained by March/April 2013. Though, Government of Tripura is one
of the shareholders in the project, we believe the approval process might take longer.
The Project requires land to the tune of 47 acres for the proposed factory, and around 8 acres for
the test plantation. The Company has intimated that 47 acres is allotted by the Government. Also,
laboratory of the forest department has 40 acres of land which can be used for test plantation.
However, the Company will submit documentary evidence for the same shortly.
Report
January, 2013
2.2.3 Business Analysis Conclusion

The proposed business of the Company was studied on following parameters;
-
Industry Scenario
Raw Material Availability and Trends
Manpower Requirements
Selling Strategy and Viability
Exogenous factors
Our Study indicates that the key raw materials are available in plenty. The prices of key raw
materials, barring chemicals and adhesives, have been at stabilized levels during the past few
years, and we do not foresee any significant increase from the forecasted levels in near to midterm. The proposed products have an establish market in India and overseas. A part of the
production will be consumed in house. The pricing policy of the company is conservative
considering the alternatives and prices of similar products in the market.
2.2.4 Financial Analysis Conclusion

The Company has used conservative parameters for the determination of sales price and
aggressive parameters for determination of the operational cost components. The project is
EBITDA positive from the first year of operations. The project payback period is only 5 years with
IRR of 18.32%. The project enjoys tax exemption for a period of 10 years as per North East policy
of Government of India. The EBITDA levels stabilize at around 23.3% with Net Profit margin at
14.5%. Specific points are mentioned below;
i)
In the financial model, power, manpower costs etc are considered as variable costs due to
which the model exhibits favorable degree of operating leverage. However the assumptions
might not hold valid. Most of these costs are fixed.
ii)
The Company is entitled to 30% Capital Investment Subsidy which is around USD 19.63 MM.
Also, the company will get revenue subsidy in form of reimbursement of transport
expenditure for transport of raw materials and finished products.
Report
January, 2013
SECTION
3:
Management Analysis
Report
January, 2013
3. 1. Promoters & Board of Directors
Mr. Debopam Mukherjee Founder, Director, President & CEO

Mr. Debopam Mukherjee has a very successful entrepreneurial record. Before starting Astral in
1995 he co-founded Angine Ltd (a hardware contract manufacturing unit) in 1989, followed by
Color monitor manufacturing in 1993. In 1995, he founded Astral Systems Inc. driving it to
market leader position in the area of Internet Software Products. Mr. Debopam Mukherjees
business philosophy has been to focus on e-services since they have the potential to radically
energize legacy processes in both technical and business applications. His beliefs in technologies
relating to the Internet are revolutionizing communication processes worldwide. Under his
leadership, Astral Group has created innovative technology solutions configuring on a server class
high availability platform that extends enterprise telephony features and functions to IP packet
telephony network devices using the H.323 protocol. AVMSs core technology is a unique all-inone solution based on VoIP and LAN Telephony software that has applications for both Enterprise
customers and future IP Centrex and Communication Application Service Providers.
In 1998, he started Atesto Technologies. The Atesto Solutions Suite, designed to transform real
world testing and Performance management for web applications, is a key component in the
implementation and realization of his vision. Atesto is a leading integrated Web platform for the
real-world testing and performance management of Web applications.
Atesto's suite of services enhances the development, testing, deployment, and performance
management of Web applications through their entire lifecycle. Mr. Mukherjees leadership and
management skills were instrumental in building an International presence for Angine, Astral and
Atesto almost overnight. The company's marquee customer base includes Microsoft, Beyond.com,
Marimba, Planet Web, HCL Technologies, i2 Technologies to name a few. Atesto was acquired in a
cash and stock deal by INFOVISTA (NASDAQ traded comp).
He also has been instrumental in starting a Venture Fund focusing on renewable energy and global
warming as a broad space; he is also an angel investor in start-up e-businesses, which are focused
on local and broadband content networks.
Report
January, 2013
His personal net-worth has been built up from sale of Atesto Technology & M&A of Astral System.
The proceeds have been invested in shares, high yield Corporate Bonds, land and building.
Artisans long term plans includes establishing of sales and marketing channel and infrastructure
in the US, Europe and Asia & increase production facilities for green products in Asia and Europe.
Swapan Bhattacharya, MS, MBA- Director
Mr. Bhattacharya is responsible for the executive leadership and overall management of the
company. He has been associated with the group since 1995 and has spearheaded the groups
investment in India and its foray into life sciences in 1998. He helped implement the vision of
applying cutting edge science to drive innovation and to establish a trust-based relationship with
its collaborators. He assembled a strong scientific leadership team that has remained with the
company since its inception and has managed aggressive growth targets over the years.
He received his B.Tech from the Indian Institute of Technology, Kharagpur; MS from
Virginia Polytechnic Institute and State University; and MBA from Kellogg School of
Management, Northwestern University
His leadership and vision have led to TCGLS (TCG Life science Limited) being nominated
by Pfizer as the Best Chemistry CRO in Asia in 2006.
In 2009, TCGLS was awarded the Indian Drug Discovery Research Organization award by
Frost & Sullivan.
In 2011, TCGLS received awards for best employee engagement & HR practices, as well as
ISO certification in 2010.
In 2009, Mr. Bhattacharya was awarded the Udyog Rattan Award by Institute of Economic
Studies, India for his outstanding contributions to Indias industrial development.
He is also Co-Chairman of the biotechnology committee of the Federation of Indian

Chambers of Commerce and Industry (FICCI) and has served in various committees at US
India Business Council.
Prior to joining the group, he was Senior Vice President at PaineWebber Inc. (currently
UBS PaineWebber).
Report
January, 2013
Mr. Partho H Chakroborty, CFO, Co-founder, Director

Partho has been involved in the Banking and Financial Services industry since 1990's. Prior to
joining Artison group, he has worked in various capacities in companies such as Nicco Uco
Financial Services Ltd., ICICI Bank, Asia Forfaiting Company Ltd, SAP, etc. Partho holds a Bachelor
of Mathematics Degree from the University of Mumbai and an MBA Degree from University of
Pondicherry with First Class and he is a member of professional bodies such as Vista Research,
which is Standard & Poors Vista subscription-based information service that supports
institutional money managers
He joined the Standard Bank London Ltd. in April 1996 as a Representative looking after
the entire banks business in India.
He was then appointed as the Honorary Advisor to The South African Trade Desk during
his tenure with Standard Bank London Ltd.
Partho is an expert in trade finance and business development and has advised banks and
corporates about business opportunities in India. He has extensively trained people in
Trade Finance and Cash Management and has worked in pioneering forfaiting and
commodity loans transactions in India. He was last heading the BFSI vertical for
Intelligroup globally where he drove the vertical and
He has written a book on Factoring which is soon to be published.
Report
January, 2013
3. 2. Key Management Team
Mr. Subhadip Chaudhury MARKETING

Subhadip Chaudhury has worked in media handling sales and account management. He has over 7
years experience and is currently with BIG 92.7 FM, Kolkata as Sales Head Corporate.
His professional achievements are as follows:
Opening up Radio Gateway for Pharmaceutical companies with Dr Reddys creating

Reddys Health Hour as an integrated trade marketing solution across the country.
Organizing & liaisoning for ITC Kisan Mela, Vidisha, the first ever rural activation done by
Reliance BIG Entertainment Ltd. Also, marketing & executing IDEA Cellular BIG Time
Bomb for BIG 92.7 FM, 2008, Hyderabad.
Marketing & executing Airtel BIG Ugadi Music Award for BIG 92.7 FM, 2008, Hyderabad
Conceptualized & executed NIPUNA to Satyam BPO on-air campaign, Hyderabad
GITEX India 2007 national radio campaign exclusively with Radio City 91.1 FM,
Conceptualized & executed GENPACT BIG TICKET, 2007, for Radio City 91.1 FM,
Hyderabad
He is a post graduate (M.Sc.) in Museology from Kolkata University and has got a professional
degree (P.G.D.M.) from SCMS, Cochin. His interests lie in playing leather musical instruments.
Mr. Prabal Banerjee GM PROJECTS
Prabal Banerjee started his career with a reputed ship building organization as a Mechanical
Engineer. Thereafter, he joined Merchant Navy as Engineering Officer and served in various
engineering positions for nine years. Drive to make it big in life motivated him to pursue his
MBA from a premier UK university. Currently he is working in shipping industry with a reputed
classification society at a client advisory position. His professional achievements are as follows:
As a team-player achieve zero backlogs on engineering reviews while increasing man-hour

efficiency.
Introducing a pilot project about on-board inventory management paving avenue for cost
reduction without compromising on safety.
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January, 2013
Planning and executing three dry-docking projects in China within scheduled time through
resource utilization and team-work.
Managing engineering operations and maintenance of ships in compliance with

international HSE regulations with 100% safety record.
Hands on experience of managing generators, boilers, instrumentation and pollution

prevention machines.
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January, 2013
3. 3. Background of the Main Parent Company

The project is envisaged by Artison Investments Ltd., (Artison) a USA based company promoted by
successful entrepreneurs.
Founders expertise of Artison lies in professional management and running & structuring of
organizations. The Artisons management team also has extensive experience in working in multi
geographical location with different technologies and tools and has successfully run companies
from concept to successful exits. The promoters access to various markets and networking
bandwidth made it possible.
Artisons multinational presence spreads across US, Europe and Asia offices also gives added
advantage in form of quick marketing access for the products to reach the right target consumer.
Artison operates on both, off shore and onsite development models which keeps the costs low.
Artison also undertakes trading in commodities to expand or leverage on the business contacts
and connections.
The main promoter is Debopam (Dave ) Mukherjee, through his 100% owned Artison Investments
Ltd, USA. He has adequate equity available, which is invested in various overseas securities.
3.3.1 Holding Structure
Current Structure
Debopam Mukherjee
100%
Artison Investment Limited,

Nevada, USA.
100%
Artison Investments- HK
Entity
76%
Artisan Bamboo
Products Pvt. Limited
A part of India entity will be owned by co-founder and employees of the company which will be
given in as ESOP.
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January, 2013
3. 4. Organisation Chart & Mission
Debopam Mukherjee
MD & CEO
Uttam Mandal
GM- Purchase &
Admin.
Subhadip
Chaudhury
Partho Chakraborty
Prabal Banerjee
CFO
GM Projects
Finance Team- GM,

Finance
Pavan Agarwal
Factory Manager
Marketing
Marketing
Divisional heads
Purchase,
Inventory,
Production
3.4.1 Mission of the Organization
To develop and expand the market for environmental friendly green products on Global
Spectrum.
To develop itself as a responsible business organization with corporate, human and social
responsibilities.
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January, 2013
SECTION
4:
Industry Analysis
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January, 2013
4. 1. Evolution of Bamboo Based Industry

Peoples experience of bamboo products is limited to sitting on bamboo furniture and matting,
using bamboo baskets or using bamboo chopsticks to eat some bamboo shoots. The last 15 years
have seen a dramatic growth in the variety of commercial bamboo products such as flooring,
laminated furniture, building panels (similar to timber-based plywood, chipboard or main board),
high quality yarn and fabrics, activated carbon and bamboo extracts,. The emergence of bamboo as
a timber substitute has coincided with a growing demand for timber. Bamboos appearance,
strength and hardness combined with its rapid growth cycle and capacity for sustainable
harvesting make it an increasingly attractive wood substitute. The market outlook for bamboo is
exciting and encouraging.
These recent developments have created new opportunities for bamboo markets. Also, it helps in
rural development and poverty reduction.
Bamboo is an abundant natural resource that grows in many parts of the world. Traditionally used
as low-cost construction material in developing countries, bamboo is being processed into
increasingly sophisticated products that serve consumers in developed countries and high-end
markets. Nowadays, with new technologies for processing, most products made from wood can be
made with bamboo, resulting in the potential for a multibillion dollar market.
Given that most of the bamboo that is currently being harvested comes from natural stands, many
bamboo producing countries favor their own native species. Interest in bamboo plantations has
been growing, and several countries including the large producers such as India and China as well
as Latin American countries have started focusing on bamboo plantation for sustainable
development.
Asia is by far the biggest producer of bamboo products, with China as the biggest exporter. The
main markets for bamboo products are the US and Europe. All trade statistics for bamboo have to
be viewed critically as the underlying data is often incomplete, due to a lack of reporting
standards. In a world where the protection of natural forests and concerns over sustainable
timber supply are growing, demand for bamboo as an alternative to hardwood is growing.
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January, 2013
4. 2. Bamboo: Introduction
4.2.1 What is Bamboo
Bamboo is an ancient woody grass widely distributed in tropical, subtropical and mild temperate
zones. It is a group of perennial evergreens in the true grass family Poaceae and includes the largest
members of the grass family. There are more than 70 genera of bamboo divided into about 1,450
species, of which only around 50 species are routinely cultivated.
Native bamboo grows in many parts of the world, including East Asia, Sub-Saharan Africa and the
Americas. Bamboo is not limited to tropical climates, with some species able to withstand frost and
survive in Northern Europe. The mix of plant species is important for maintaining high levels of
nutrients in the soil, and a high degree of resilience of the ecosystem to weather events and disease
and insect infestation.
Traditionally seen as the poor mans tree, in recent years, bamboo has risen to a high-tech,
industrial raw material and substitute for wood. Although the commercialization of planted
bamboo has been slow, bamboo is becoming an increasingly important economic asset in poverty
eradication, economic and environmental development.
Bamboo is an extremely fast growing plant, with some species obtaining growth surges of 100cm
per 24 hour period. Most bamboo species grow to their full height within a single growing season.
Over the following seasons the walls of each culm (or stem) dry and harden, reaching maturity
within 3 to 5 years.
4.2.2 Attributes
Bamboo has been used for everything, from food to bridge building for millennia but consumers
and manufacturers are taking a fresh look at all that this amazing plant has to offer. Following are
some of the attributes of Bamboo.
Renewable resource- Depending on the species, bamboo can be harvested in one to five years
versus 10-50 years for most softwoods and hardwoods. Thereafter harvests are possible every
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January, 2013
second year for up to one hundred and twenty years, the yield (weight per acreage and year) is up
to 25 times higher than that of timber Hardwoods like oak which takes at least forty years to
mature before they can be harvested. Almost 1 million acres of forests are lost each week
worldwide to deforestation. Bamboo's versatility as a substitute for hardwoods offers a chance to
drastically reduce these figures and protect the forests.
Bamboos Environment Credentials- Bamboo is the fastest growing canopy for the re-greening
of degraded lands and it removes CO2 from the atmosphere through photosynthesis by using
carbon as an energy source and converting it into plant tissue which releases oxygen, its stands
release 35% more oxygen than equivalent stands of trees. Some bamboo even sequester up to 15
tons of carbon dioxide from the air per hectare. Bamboo can also lower light intensity and protects
against ultraviolet rays. One hectare of bamboo sequesters 62 tons of CO2/years and 1 hectare of
young forest sequesters 15 tons of CO2/year.
Bamboo vs. Trees (Wood)
Bamboo
trees
CO2 Sequestration
Source:
Oxygen Generation
Water retaining
http://www.bamboohouseindia.org/bamboo.asp
Global attention to the potential role of afforestation and reforestation in the fight against climate
change has been increasing. However, the majority of traditional reforestation schemes utilize
slow growing species. With regards to the sequestration properties of trees, bamboo differs in two
major ways:
(1) Its fast growth enables it to sequester significant quantities of carbon dioxide (CO2) in a
relatively short time period, and
(2) The harvesting of selective culms does not kill the tree but rather stimulates further growth.
Excellent growth rate- Some species of bamboo grow more than three feet each day. No plant on
the planet features a faster growth rate. When it is harvested, it will grow a new shoot from its
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January, 2013
extensive
root
system
with
no
need
for
additional
planting
or
cultivation.
Minimal waste- After harvesting, virtually every part of the plant is used to make a wide variety
of products. From soil-enriching mulch to beautiful furniture to chopsticks, every part of the plant
can be utilized.
Versatility- Bamboo can replace the use of wood for nearly every application. Paper, flooring,
furniture, charcoal, building materials and much more can be made from bamboo. Bamboo fibers
are far stronger than wood fibers and much less likely to warp from changing atmospheric
conditions. No fertilizer, pesticides, or herbicides is needed. Unlike most cash crops, bamboo
requires no agricultural chemicals to thrive.
Soil protection- Once hardwood forests are clear-cut and the stumps are burned to provide
fertilizer and space for growing crops, erosion inevitably occurs as the topsoil and nutrients are
washed away by rainfall. The eroded soil then clogs rivers and streams and affects the lives of
people and animals living downstream. Bamboo roots remain in place after harvesting where they
prevent erosion and help retain nutrients for the next crop.
Economic development- In less developed countries where unemployment leads to civil unrest,
bamboo production and the manufacturing of bamboo products provides job opportunities in
areas that desperately need social and economic stability. If tapped in a proper way bamboo can
help more than 5 million of population cross the poverty line.
Bamboo can grow in a variety of conditions- Bamboo can grow in arid regions where droughts
cause other crops to fail and since the roots are left in place after harvesting, it helps to preserve
vital moisture in the soil. From low wetlands to higher elevations in the mountains, bamboo
thrives in a wide range of climates.
Why is bamboo eco-friendly?
Hard wood takes 30-50 years to mature, while bamboo reaches maturity in 3-5 years.
The same square footage of bamboo produces more oxygen than many tree varieties.
All species of bamboo grow at a rapid speed, and several species grow up to four feet in a
single day. Due to the durability of bamboo plants, no pesticides or chemicals are needed
to encourage the maturation process, and they require much less water than trees.
Bamboo products decompose into a completely reusable and nutrient-rich composted soil.
Study shows the total estimated steady state carbon storage in all forms (forest and sequestered
within products) in a total lifecycle production systems for tropical forest production in teak
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January, 2013
timber and bambusa bambos. Teak requires 40 years to reach this level, bambusa bambos (a
common tropical variety in India, Myanmar, and Indonesia etc.) requires only 20 years.
Comparison among various substitutes
Mean
annual
productivity
ground
biomass
Total
above -
carbon
biomass
storage
at maturation
Total est. carbon

storage
including
products
Teak
Tc/hec/year
t/Hec
126
191
(40 yrs)
(40 yrs)
161.4
no data
no data
17.5
61.25
no data
6.3
Tectona Grandis
Eucalyptus
Eucalyptus Grandis
Eucalyptus
Plantar high-yield Eucalyptus
Eucalyptus
(7yrs)
21
Plantar clones Eucalyptus
73.5
no data
(7yrs)
Bamboo Species
Phyllostachys pubescens
Common
Name:
17.24-27.58
Moso;
92 t C/ha
159.4
(5-8 yrs)
(20 yrs)
149 t C/ha
442.15
(6 yrs )
(20yrs)
Temperate; China and Japan

Bambusa Bambos
47.8
Common Name: Spiny bamboo

Tropical;
India,
Myanmar,
Indonesia etc
(Source: Company)
Bamboo species have high carbon storage and annual carbon production compared to common
timber production species.
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January, 2013
4. 3. Uses of Bamboo
Production of bamboo is only the starting point. The real benefits accrue from value-added
products. Handicrafts (mats, baskets, tools, toys and utensils) and furniture are established
possibilities which can be produced in finished form or supplied as components to small
enterprises for further processing (for example, supply of mats for production of bamboo mat
board). There are emerging industrial and large-scale applications too in the manufacture of wood
substitutes and composites, energy, charcoal and activated carbon. Building and structural
components represent vast possibility for enhancement of enterprise value addition, income and
employment. Some of the uses are detailed below:
4.3.1 Culm Based Products

Bamboo culms are widely used as a construction material due to its low cost of production and its
strength. Some of the uses in Construction industry are:
1. Scaffolding
2. Bridges
3. Housing material
4. Reinforced concrete
5. Pipes
These uses of bamboo require very little processing of the culms other than preservation against
insects and rotting. Among varied types of bamboo houses, Traditional houses are the ones which
use bamboo culms as a primary building material.
4.3.2 Industrial Based Products

In recent years a number of new bamboo-based products have been developed using industrial
methods. As mentioned above, bamboo can provide a sustainable and renewable resource as an
alternative to traditional wood sources.
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January, 2013
Pulp, Paper, and Clothing

a. Paper - Several bamboo-producing countries, such as China and India use bamboo in pulp,
paper and more recently cloth. Bamboo paper has practically the same quality as paper
made from wood. Its brightness and optical properties remain stable, while those of paper
made from wood may deteriorate over time. The morphological characteristics of bamboo
fibres yield paper with a high tear index, similar to that of hardwood paper. The tensile
stiffness is somewhat lower compared with softwood paper. The strain strength is
between that of hardwood and softwood papers. The quality of bamboo paper may be
improved by refining the pulp.
b. Clothing - Bamboo clothing is a relatively new product, but is expected to grow rapidly
due to the materials unique mechanical and environmental qualities. The natural fibres in
bamboo clothing give it exceptionally high performance and a soft feel which is often
compared to cashmere. Its non-irritant qualities make it fit for even baby clothes.
c. Furniture - Traditional bamboo furniture uses natural round or split bamboo. A new type
of pack-flat, knockdown furniture uses glue-laminated bamboo panels. Unlike the
traditional design, this furniture may be shipped in compact flat packs, to be assembled on
the spot. The new design overcomes many of the problems of traditional bamboo
furniture, such as high labor and transportation costs, low productivity, instability, varying
quality and susceptibility to insects and fungi. At the same time, it retains the distinct
physical, mechanical, chemical, environmental and aesthetic features of bamboo.
Export of laminated bamboo furniture is growing rapidly. However, trade statistics
currently do not capture the value, owing to the absence of a special code for bamboo
furniture. It is usually classified as wooden furniture.
In 2009, the world economy was in recession and furniture demand has decreased in all
large furniture markets (i.e. in the markets that sell more than US$ 10 billion of furniture
at retail prices), with the exception of China and India. However, with conditions having
stabilized, substantial growth is expected in China and India.
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January, 2013
d.
Flooring- Bamboo flooring is a quality product that can be used widely and has a large
and growing global consumer market. It has certain advantages over wooden floors due to
its smoothness, brightness, stability, high resistance, insulation qualities and flexibility.
Bamboo flooring has a soft natural luster and maintains the natural gloss and elegance of
bamboo fibre. This flooring is attractive to the demanding hardwood flooring markets in
Europe, Japan and North America. The estimated annual production of bamboo flooring in
China was 17.5 million square meters in 2004. Exports account for some 65 percent of
total production. Large retailers such as IKEA have also started selling bamboo flooring.
The world market for Bamboo & bamboo based products has been estimated at USD18
20 billion by the end of 2015. India is slated to be one of the major players in this
developing market. Global Organizations like IKEA, Habitat, The Body Shop, Oxfam and
others have been big bulk buyers of such organic products due to the high demand of
organic and naturals substances all across the world.
The flooring market alone only in the Western Europe has been estimated at about 1,900
million square meters in annual sales. This market has grown by about 250 million square
meters per annum since 1996, which corresponds to an average annual growth of about
3.7 percent. The laminate flooring market, during the same period, had an average annual
growth of 29 percent. The market share of carpeting has declined in favor of harder
flooring, such as wood and laminate flooring. Bamboo based flooring is an attractive
alternative to wood or laminate flooring. This is at US $ 150 million global market, which is
growing at the rate of 50% per annum.
4.3.3 Other Uses

a.
Soil rehabilitation- Bamboo protects steep slopes, soils and water ways, prevents soil
erosion, provides carbon sequestration and brings many other ecosystem benefits.
A second benefit of bamboo as a resource is that it can thrive on pieces of land where
wood may not (e.g. degraded land on slopes), and due to its extensive root network may
help to prevent erosion and facilitate the restoration of a healthy water table, potentially
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January, 2013
diminishing the environmental effects of erosion, landscape deterioration and desiccation

relating to the environmental problem of ecosystem deterioration.
The features mentioned above make some bamboo species very suitable for reforestation
of deserted land which is no longer useful as agricultural land (e.g. over exploited land
created by the clear cutting of tropical rain forests). Therefore, bamboo in the future, may
be able to increase the bio-capacity by simultaneously increasing the area of fertile global
hectares.
b. Food- Bamboo shoots are increasingly popular, not only in Asia but other markets around
the world. The planning commission has estimated that the Indian bamboo shoots
industry has the potential to grow at the rate of 25% per annum and capture a
market worth Rs. 3000 million from the current level of Rs. 48 million. A large potential
export market exists for shoots in Japan, Hong Kong, Singapore and Thailand. The
International Network for Bamboo and Rattan (INBAR) has selected 6 species which are
most suited for development of bamboo shoot industry in India. These are: Bamboosa
balcooa, Dendrocalamus giganteus, D. hamiltonii, D. strictus and Melocanna bambusoides.
c. Charcoal- Bamboo charcoal is traditionally used as a substitute for wood charcoal or
mineral coal. It can serve as a fuel, absorbent and conductor. The calorific value of bamboo
charcoal is almost half that of oil of the same weight. Activated bamboo charcoal can be
used for cleaning the environment, absorbing excess moisture and producing medicines.
The absorption capacity of bamboo charcoal is six times that of wood charcoal of the same
weight. Bamboo charcoal can be used as an air purifier and for other antipollution
purposes. China is a leader in its production. At present, Japan, the Republic of Korea and
Taiwan are the main consumers, but its importation is rapidly expanding in Europe and
North America.
d. Fuel- Through pyrolysis, bamboo can be converted into three valuable products: bamboo
charcoal, oil and gas. Changing the pyrolysis parameters can change the product shares
depending on the purpose and market conditions. Bamboo extracts contain valuable
elements and can be used in pharmaceuticals, creams and beverages. Bamboo gas can be
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January, 2013
used as a substitute for petroleum. Bamboo charcoal is an excellent fuel for cooking and
barbequing.
The properties and uses of bamboo vary at different stages of growth and its appropriateness at
different stages of growth is as follows:
Up to 30 days - Bamboo shoots to be used as food
Between 6-9 months - for basketry
Between 2-3 years - for laminates and boards
Between 3-6 years - for construction
4.3.4 Additional Benefits from Bamboo
Bamboo grows quickly and can be harvested annually without depletion of the parent plant
and without causing harvesting damage or deterioration of the soil. Bamboo can grow on
marginal land which is not suitable for traditional agriculture or forestry, or as an agroforestry crop.
Its biological characteristics make it a perfect tool for reducing carbon dioxide levels in the
atmosphere. It generates more oxygen than equivalent strands of trees, lowers light intensity,
protects against ultraviolet rays and is an atmospheric and soil purifier.
It is relatively light weight, because the culms are hollow, and unlike wood, they can be easily
harvested and transported without specialized equipment or vehicles. Processing normally
does not require highly skilled labor or special qualifications and can be started at a minimal
cost.
Although technically a grass, bamboo exhibits a number of properties that make it a valuable
species for Reforestation initiatives, particularly in areas that have suffered high
environmental and soil degradation. In the early years of a planted bamboo ecosystem, it is
necessary to keep the undergrowth clear for maximum growth. Once the bamboo clumps are
established it is possible to recreate a natural ecosystem, thereby increasing biodiversity
within a previously degraded area.
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January, 2013
Bamboo is foremost in biomass production, with up to 40 tonnes per hectare per year in terms
of culms only in managed stands. An estimated one-quarter of the biomass in tropical regions
and one-fifth in subtropical regions comes from bamboo.
Bamboo is one of the worlds best natural engineering materials. Due to its high tensile
strength, it is an essential structural material in earthquake architecture and is one of the
strongest building materials. Its strength-to-weight ratio is better than that of teak wood and
mild steel.
Bamboo flooring is 27% harder than for example oak, it has a very low expansion and shrink
rate. After finishing with oil or lacquer it is very resistant to moisture. Bamboo panels and
parquet are available in various styles and colours and can be a replacement for almost all
wood types used in building interiors.
Bamboo is considered as untapped and amazing resources.
4.3.5 Bamboo vs. Hardwood Trees

Bamboo is becoming a popular alternative to wood for many reasons. Not only it is more
environmental, but it can also be durable and more affordable. In addition, it is light but strong,
making an ideal construction material which is very sustainable and renewable. Here are some
benefits of using bamboo versus other wood materials.
1. Affordability: Because it is so sustainable and easy to grow, bamboo is more affordable than
most woods. It can be easily grown and harvested, so it is one of the cheapest construction
materials around.
2. Quality: Solid and secure, bamboo makes a better quality wood that is stronger and more
affordable than most hardwoods.
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January, 2013
Comparison of Properties of Plywood and Bamboo Board
Comparison of properties of Plywood and Bamboo Board

Property
Structural Plywood
Bamboo Board 6mm
Bamboo Board 21mm
Plywood
Density kg/m3
750
790
602
553
Tensile
54
29.5
36.4
32.7
Along
34
29.5
35.8
33.8
Along
34
35.3
43.9
24.5
Across
29
35.3
40.2
20.5
Strength N/mm^2
Compressive
Modulus of Rupture N/mm^2

Along
49
59.4
68.5
47.7
Across
29
59.4
55.4
30
Along
7355
3144
7820
56.9
3923
3144
3210
25.6
588
6066
3316
600
Modulus of Elasticity N/mm^z

Across
Modulus
of
Rigidity
N/mm
Tests conducted by Indian Institute of Technology, Mumbai on Bamboo Strip Boards (BSB) reveal
that Bamboo Composites have many superior properties than those of even the well known
Timber species such as Sal & Teak.
3. Benefit to Developing Countries: Bamboo grows best in tropical zones which are in some of
the poorest regions in the world. Bamboo provides an economically viable crop for people to
make their livelihoods. As popularity of bamboo grows, these countries are enjoying access to
a wider market. It is not only sustainable to the Earth, but to developing economies, as well.
4. Low expansion/shrink rate: Additionally, Bamboo flooring is 27% harder than for example
oak. Bamboo panels and parquet are available in various styles and colors and can be a
replacement for almost all wood types used in building interiors
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January, 2013
5. Deters deforestation related problems: Using wood means cutting down trees which leads
to deforestation of the tropical rainforests. The consequences of the global deforestation for
tropical hardwoods are well known. Oak needs an average of 50 years to mature and several
tropical hardwoods require between 80 and 100 years before they can be used. With trees
there is a need to plant new trees to replace the cut trees, where as with Bamboo, as it is from
the grass family it re-grows itself. A new bamboo shoot grows to its full mature size in one
season and replaces the cut lengths within months; no loss of bamboo forest is therefore
noticeable.
Bamboo harvests are regulated by the government. In assigned regions all new shoots are date
marked to exactly map how much and when can be harvested. The stocks of bamboo are so
extensive that there is no danger of deforestation and can easily handle the steady increase in
demand.
To sum up; bamboos excellent growth, environmental, mechanical and engineering properties
make it a fine alternative to tropical timber. Its potential for different value added products and
application make it an extremely important material for dispersed employment generation and
economic activities.
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January, 2013
4. 4. Global Bamboo Industry Scenario

The world market for Bamboo & bamboo based products has been estimated at USD20 billion by
the end of 2015. India is slated to be one of the major players in this developing market. Global
organizations like IKEA, Habitat, The Body Shop, Oxfam and Gepa have been in the past few years
big bulk buyers of such organic products due to the high demand of organic and natural
substances all across the world.
The flooring market in Western Europe has been estimated recently at about 1,900 million square
meters in annual sales. This market has grown by about 250 million square meters per annum
since 1996, which corresponds to an average annual growth of about 3.7 percent. The laminate
flooring market has, during the same period, had an average annual growth of 29 percent.
The market share of carpeting has declined in favor of harder flooring, such as wood and laminate
flooring. Bamboo flooring is an attractive alternative to wood or laminate flooring. There is an US$
150 million global market, which is growing at the rate of 50% per annum.
Few Statistics: Bamboo Market
Current Estimate of Global Bamboo Market
: $ 12 billion i.e. Rs. 54,000 Cr.
Expected to grow by 2015
: $ 20 billion i.e. Rs. 90,000 Cr.
Estimate of domestic Bamboo Economy of India (2005)
: Rs. 2000 Cr.
Present estimate of domestic market potential
: Rs. 4500 Cr.
Estimated domestic growth by 2015
: Rs. 26000 Cr.
Estimate of Indias share in global market
: $ 1 billion i.e. Rs. 4,500 Cr.
Estimated growth in global market by 2015
: $ 5.7 billion i.e. 25,650 Cr
(Source:S.S. Maiti) * Estimated assuming 2005 exchange rate of Rs.45 per USD
Bamboo has been receiving increasing attention over the last two decades for its economic
and environmental values.
In Africa, Asia and Latin America it is closely associated with indigenous culture and
`knowledge and is widely used for housing, forestry, agro forestry, agricultural activities
and utensils.
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January, 2013
Bamboo has more than 1,500 documented uses, ranging from fuel wood to light bulbs,
medicine, poison and toys to aircraft manufacturing.
4.4.1 Evolution
In the initial stages, Bamboo Culm products were serving only small niche markets in the U.S. and
in Europe. Since the early 1990s new industrially manufactured bamboo products entered world
markets, mainly supplied from India and China, and have seen moderated but steady growth.
Given the attractive prices obtained, more countries have been planning to develop bamboo
industries to produce bamboo for Panels, Paper, Fabrics, Charcoal and Shoots.
New industrial applications and modern construction design have both demonstrated bamboo's
huge potential, but the bamboo sector in China is the only one reported to be thriving. The Chinese
has been able to successfully industrialize the use of bamboo by integrating the bamboo sector
with domestic and international markets. In the last 20 years, China has established an integrated
chain of bamboo plantations, its semi-processing and industrial product manufacturing such as
bamboo Flooring, Furniture, Furnishings, Charcoal and fresh bamboo shoots for the domestic and
export markets. Its focused intervention to harness bamboos potential has led to increase in its
productivity by more than 10 times since 1970 when it was 2-3 tonnes/ha/annum.
4.4.2 Main Markets for Bamboo

Global bamboo trade volumes are estimated to be almost USD12 billion. This compares to global
trade in timber of USD 600 billion. When considering the market for timber bamboos such as G.
angustifolia, it is important to consider that much of the current market for timber can be replaced
with G. angustifolia.
The main importers together make up some 80 percent of the world bamboo import trade. The
European Union, Hong Kong, Japan and the United States were the major markets for bamboo
products, collectively accounting for 71 percent of the total market share.
USA & Europe - The US is the largest western consumer of bamboo products with annual imports
of USD 300 million, almost entirely from China. Between 2000 and 2003, imports to the US grew
by 98% in volume and 127% in value. Most of the bamboo is exported in the form of flooring (4.2
million sqmt) and baskets. The market for bamboo poles in the US is estimated at USD 15 million
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January, 2013
(with 90% coming from China). In the EU, consumption of bamboo flooring has increased from
0.67 million sqmt in 2003 to 0.9 million sqmt in 2005 and is expected to continue growing.
Bamboo serves numerous small users around the globe, but international trade statistics show
that it has also become a very competitive resource in the international arena. Small, medium and
large-scale industries should be promoted further to more effectively facilitate poverty reduction
and sustainable economic and environmental development in the developing world. As learnt,
engineered bamboo successfully competes with wood and other raw materials in highly
demanding international markets.
Bamboo flooring is considered to have the highest potential, with major retail chains like IKEA and
Home Depot increasingly interested in this product. The demand for bamboo veneer is also
expected to grow.
Segregation of Bamboo Demand by Countries
Japan
14%
Hong Kong
5%
Others
7%
USA
37%
France
7%
Germany
7%
Netherlands 4%
UK
19%
Source:(DS-Mr.S.S. Maity Report)
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January, 2013
Market size in the USA of various bamboo product categories based on 2004 import figures
from the PIERS database.
Category
Value
Market share (%)
(US$ 1 000)
Handicrafts
2415
0.9
Kitchen articles
23796
9.1
Basketry
70645
27.0
Decoration
31221
11.9
Garden
27000
10.3
Raw material
15654
6.0
Furniture
20081
7.7
Furniture with woven parts
6452
2.5
Cane based furniture
4778
1.8
With other materials
3289
1.3
Tables
1794
0.7
Chairs
1613
0.6
Crates
1352
0.5
Shelves
473
0.2
Bedroom articles
185
0.1
Flooring
70453
27.0
Flooring as such
64600
24.7
Accessories
2952
1.1
Without finishing
1563
0.6
Finished
544
0.2
Parquet
455
0.2
Panels
154
0.1
Veneer
104
0.0
Total
262265
100.0
Report
January, 2013
4.4.3 Market Potential

With rapidly growing use and trade of Bamboo in recent years, Bamboo is becoming popular as an
excellent substitute for wood in producing Pulp, Paper, Board and Charcoal.
In a world, where the protection of natural forests and concerns over sustainable timber supply
are growing, demand for bamboo as an alternative to hardwood is expected to grow further and
lead to substantial future demand for bamboo. As a result of rising demand for environmentally
friendly green products, the world bamboo market is expected to double by 2015 (from USD 1012 billion to USD 20 billion).
Bamboo is generally perceived as a green commodity, but the fact that China is the main producer
is damaging its reputation from a sustainability perspective. The opportunity for forest managers
and producers growing certified bamboo (E.g. under the Forest Stewardship Council, (FSC) for
sustainable forest management) is significant.
Report
January, 2013
4. 5. Distribution of World Bamboo
In Asia (from Pakistan to Japan), bamboos are represented by about 320 species, of which more
than half are in the India-Burma region. Large area of natural bamboo forest occurs in tropical
Asian countries including, India, Myanmar, Thailand, and China, expanding from 15-25 North
latitudes.
No natural bamboo forest exists in Europe but few bamboo forests occur in Africa and Central
America between the above mentioned latitudes. Africa is poor in bamboo, and only a few genera
with about twelve species occur there.
In western hemisphere, their natural range extends from the southern USA to Argentina and Chile
with about 200 species. North America has one native species viz. Arundinaria gigantea. Only the
genus Arundinari occurs in both hemispheres.
The ecological requirements vary widely amongst the various bamboo species.
Contribution of world bamboo resources
RestAsia,
31%
India,
46%
China,
23%
Distribution in Asia
Rest-Asia,
31%
India,
46%
China,
23%
Source :( S.S.Maiti Report)
Asia remains the richest continent, with about 65 percent of total world bamboo resources.
Report
January, 2013
Extent of bamboo forest in Asia, Africa and Latin America
Area of bamboo (1 000 ha)
Forest Area ( 1 Bamboo to forest

000 ha)
area, %
Country
1,990
2,000
2,005
2,005
Bangladesh
90
86
83
871
10
Cambodia
32
34
29
10,447
China
3,856
4,869
5,444
197,290
India
10,711
10,863
11,361
67,701
17
Indonesia
2,151
2,104
2,081
88,495
Japan
149
153
154
24,868
1,612
1,612
16,142
10
Lao
People's 1,612
Democratic
Republic
Malaysia
422
592
677
20,890
Myanmar
963
895
859
32,222
Pakistan
14
20
1,902
38
45
29,437
156
172
7,162
of 8
6,265
Sri Lanka
1,933
Thailand
261
261
261
14,520
Viet Nam
813
813
813
12,931
Total Asia
21,230
22,499
23,620
533,076
Ethiopia
849
849
849
13,000
Kenya
124
124
124
3,522
Nigeria
1,590
1,590
1,590
11,089
14
Uganda
67
67
67
3,627
128
128
35,257
Papua
New 23
Guniea
Philippines
Republic
127
Korea
United Republic 128
Report
January, 2013
of Tanzania
Total Africa
2,758
2,758
2,758
66,495
Brazil
9,300
9,300
447,698
Chile
900
900
16,121
Ecuador
10,853
Peru
190
190
68,742
Total
Latin -
10,399
10,399
543,414
35,656
36,777
1,142,985
America
Grand Total
23,988
Bamboo Supply from Asian Countries

Over the last 15 years, the bamboo area in Asia has increased by 10 percent, primarily due to
large-scale planting of bamboo in China and, to a lesser extent, in India.
Bamboo Supply from Asian Countries:
Thailand, 1%Phillipines, 1%
Malaysia, 3%
Vietnam, 3%
Laos, 7%
Others, 5%
India, 48%
Indonesia, 9%
China, 23%
Source: FAO (2005)
Report
January, 2013
4. 6. Indian Scenario
According to some estimates, India has 30 per cent of the worlds bamboo resources, but
contributes only four percent share of the global market. This is mainly because of low
productivity. Bamboo is a vital element of India's North Eastern region comprising the states of
Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura.
Bamboo, which is traditionally considered as the "poor man's timber" in India, is under
consideration as a major export item by the Indian Government for a global market valued at
Rs.500 billion (US$ 11.9 billion) and producing as much as 20 million tonnes of varied products a
year from China alone.
India is the second richest bamboo resource country in the world, next only to China. In terms of
genetic diversity, India has almost 150 bamboo species under 75 genera. About 89 bamboo
species out of the 126 recorded in India under 16 genera grow naturally in different forest areas
or are cultivated.
Between them, India, China and Myanmar have 19.8 million hectares of bamboo reserves 80
percent of the World's Bamboo forests. Out of this India's share is 45 percent, with nearly 150
different species of the plant, but only 4 per cent of the global market.
Though India has bamboo resources in about 11 million hectare, the yield is low at 3 tonne per
hectare per annum as the cultivation is not intensively managed. China has gone for intensive
commercial cultivation of bamboo and has increased the average yield to 25 tonne per hectare per
annum. Within two decades of the initiatives, China has been able to convert their traditional
bamboo-based handicrafts sector into a mechanized one.
The government has lately come to regard bamboo as an easily manageable export item that
provides high yields, has lots of uses and has the potential to provide employment for millions,
and thus stem rural workers flight to India's teeming cities. The government is keen to position
and concentrate the domestic bamboo industry in the northeast of the country. The aim is to
capture 27 percent of the world market by 2015. By that time, the market is expected to be Rs.950
billion.
Report
January, 2013
With the launch of the National Bamboo Mission (NBM) in 2007, the farmers are encouraged to
grow the right type of bamboos and facilitate bamboo-based industries. The NBM works in
coordination with the Cane and Bamboo Technology Centre (CBTC) and Bamboo Technology
Support Group (BTSG) in 12 states including 8 north eastern states, Bihar, Jharkhand, West Bengal
and Orissa.
Distribution in India
Others
9%
India
NER
28%
Karnataka
7%
Arunanchal Pradesh
20%
Orissa
6%
Madhya Pradesh
20%
Maharashtra
10%
Source: S.S.Maiti,
4.6.1.
Bamboo Industry in Tripura
Tripura is known as the home of the bamboo plant and more than 21 species of the bamboo are
found here. The estimated value of the bamboo industry in Tripura is Rs.70.00 crores per annum
and it has the potential to grow up to Rs.400 crores per annum in the next five years.
The National Bamboo Mission launched by the Central Government with a total budget of Rs 568
Crores, targets 176,000 hectares of fresh plantations. The mission has created employment for
many people in the region enabling them to live a happy life.
It is estimated that 2.46 lakh families in Tripura are now engaged in bamboo related vocations.
Report
January, 2013
Both Centre and the Tripura Government have been organizing fairs and training sessions for the
benefit of rural artisans.
Species of bamboo found in Tripura - Bamboo grows all across the state of Tripura consisting of
nearly 10 to 15 different species. They are Barak (Bambusa balcooa), Bari (Bambusa polymorpha),
Mritinga (Bambusa tulda), Muli (Melocanna baccifera), Kali (Bambusa nutans),Paora (Bambusa
teres), Rupai (Dendrocalamus longispathus), Dolu (Schizostachyum dullooa), Makal (Bambusa
pallida), Pecha (Dendrocalamus hamiltonii), Kailyai (Gigantochloa rostrata), Kanak kaich
(Bambusa affinis), Lanthi bans (Dendrocalamus strictus), Tetua (Bambusa spp.), Ish (Bambusa
spp.), Jai (Bambusa spp.), Bombash (Bambusa spp.), Sairil/Wadu bamboo (Melocalamus
compactiflorus), Bosai (Bambusa spp.)
Area under bamboo forests- Area in the State under bamboo forests is 2397 sq. km (as per
SFAP). Though considerable bamboo exists under farm sector and on homesteads, no authentic
data exists about its extent. In the farm and homestead segments, the bamboo cultivated is
predominantly Bari, Barak and Muli.
Growing Stock of bamboo
Clump Forming Bamboo
Non-Clump Forming Bamboo
Average per hectare Nos.
Weight
Nos.
Weight
State total
58.954
94.931
Kg 1058.36
1255.08
37.093 million
59415.985 M.T.
665.920 million
Kg
789695.77 M.T.
Tripura Bamboo Policy

To realize the economic, social and environmental potential of the bamboo resource of Tripura,
develop in into one of major economic sectors of the State, and provide employment and income
generating activities for the tribals and rural poor. This vision will be implemented on a
sustainable economic development basis so that market and ownership systems not only halt the
process of further degradation of bamboo resources, but lead to an increase in the quantity and
quality of bamboo resources, to meet the present and prospective requirements of bamboo users
including the environmental needs of the State.
Report
January, 2013
4. 7. Government of India- Tax Subsidies in North East Region

The project is located in Tripura which comes under North-East region of India. In the recent
years, the Government of India has announced several measures to promote industrial growth in
the region. In this regard, the Government has promulgated North East Industrial and Investment
Promotion Policy (NEIIPP), 2007.
4.7.1. NEIIPP, 2007

The Government has approved a package of fiscal incentives and other concessions for the North
East Region namely the North East Industrial and Investment Promotion Policy (NEIIPP), 2007,
effective from 1.4.2007
The North East Industrial Policy (NEIP), 1997 covered the States of Arunachal Pradesh, Assam,
Manipur, Meghalaya, Mizoram, Nagaland and Tripura. Under NEIIPP, 2007, Sikkim will also be
included.
Duration:
All new units as well as existing units which go in for substantial expansion, unless otherwise
specified and which commence commercial production within the 10 year period from the date of
notification of NEIIPP, 2007 will be eligible for incentives for a period of ten years from the date of
commencement of commercial production.
Substantial Expansion:
Incentives on substantial expansion will be given to units effecting an increase by not less than
25% in the value of fixed capital investment in plant and machinery for the purpose of expansion
of capacity/modernization and diversification, as against an increase by 33 % which was
prescribed in NEIP, 1997.
Excise Duty Exemption:
100% Excise Duty exemption will be continued, on finished products made in the North Eastern
Region, as was available under NEIP, 1997. However, in cases, where the CENVAT paid on the raw
materials and intermediate products going into the production of finished products (other than
Report
January, 2013
the products which are otherwise exempt or subject to nil rate of duty) is higher than the excise
duties payable on the finished products, ways and means to refund such overflow of CENVAT
credit will be separately notified by the Ministry of Finance.
Income Tax Exemption:

100% Income Tax exemption will continue under NEIIPP, 2007 as was available under NEIP,
1997.
Capital Investment Subsidy:

Capital Investment Subsidy will be enhanced from 15% to 30% of the investment in plant and
machinery. For automatic approval, the subsidy at this rate will be Rs.1.5 crores per unit, as
against Rs.30 lakhs under NEIP, 1997. Such subsidy will be applicable to units in the private
sector, joint sector, cooperative sector as well as the units set up by the State Governments of the
North Eastern Region.
For grant of Capital Investment Subsidy higher than Rs.1.5 crore but upto a maximum of Rs.30
crores, there will be an Empowered Committee Chaired by Secretary, Department of Industrial
Policy & Promotion with Secretaries of Department of Development of North Eastern Region
(DONER), Expenditure, Representative of Planning Commission and Secretary of the concerned
Ministries of the Government of India dealing with the subject matter of that industry as its
members as also the concerned Chief Secretary/Secretary (Industry) of the North Eastern State
where the claiming unit is to be located.
Proposals which are eligible for a subsidy higher than Rs.30 crores, will be placed by Department
of Industrial Policy and Promotion before the Union Cabinet for its consideration and approval.
Interest Subsidy:
Interest Subsidy will be made available @ 3% on working capital loan under NEIIPP, 2007 as was
available under NEIP, 1997.
Comprehensive Insurance:
New industrial units as well as the existing units on their substantial expansion will be eligible for
reimbursement of 100% insurance premium.
Report
January, 2013
SECTION
5:
Technical Analysis
Report
January, 2013
5. 1. Project Objective
The objective of the project would be to take up the targeted activities as enumerated below in
phases:
A) Primary Objective:
Setting up manufacturing facilities to convert bamboo poles into Bamboo based Medium
Density Fiber boards and High Density Fiber boards;
Setting up more units close to the Bamboo growing areas having facilities for primary
processing of bamboo;
Continuous research on new techniques and value addition;
B) Upstream Projects to include:
Setting up Nurseries and laboratories to propagate and raise large quantities of good
quality bamboo saplings, partly for captive plantation and partly for sale to farmers on a
production forestry mode;
Setting up of model farms of bamboo plantation for captive consumption and for training
farmers in plantation & harvesting techniques;
C) Downstream Projects to include:
Setting up units in key locations to convert Bamboo based Boards into high value products
for end users in flat furniture,
Setting up facilities to utilize process wastes of bamboo for heat energies for captive
consumption.
Setting up tourism facilities of international grade near the manufacturing units to attract
both domestic and foreign tourists not only as a business proposition but also as market
development strategy for Bamboo based Board Housing.
Start up time
The Project shall be implemented within a period of 24 months. However, revenue shall be
generated from the first year itself as the Flat Furniture Unit will be operational within 9 months
time from start.
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January, 2013
5. 2. Location & Site Details

5.2.1. Location
India is the second largest producer of Bamboo after China in the world. Climate and soil in the
country, especially in the North Eastern Region, is most suitable for growth of Bamboo. Despite
the same, Bamboo was never given its due importance in India till the end of the last century when
the Government of India, took the initiative in the form of a comprehensive and integrated
program to promote and develop bamboo both as a fast growing plantation material and as an
industrial raw material. This initiative of the Government has already created growing interest
amongst farmers to produce bamboo, amongst the entrepreneurs to consider bamboo as a major
raw material and amongst the consumers as a viable alternative to wood. Besides abundance in
raw material supplies, India has an enormous domestic market potential which is growing at a
rapid speed. Keeping the above scenario in view, it is envisaged that India would be the ideal
location for the major project activities.
Location of the Factory

The factory is located in Tripura. The location is very strategic and is considered as the gateway by
land to the adjoining North Eastern Indian states of Sikkim, Assam, Meghalaya, Mizoram, Manipur,
Tripura, Arunachal and Nagaland as well as to the neighboring countries like Bhutan and Nepal. It
is well connected by road, rail and air to these states as well as to the major metros of the country.
Bamboo is grown in abundance throughout the North East Region of India. It is reported that
nearly 136 species of bamboo are available in India out of which 58 species, belonging to 10
genera are distributed in North Bengal and the adjoining North-eastern States alone. These states
combined hold more than 80 percent of the countrys Bamboo stock.
The soil and climate is ideally suited for bamboo plantation and availability of unutilized fallow
land is in abundance. This location can very well boast of its serene beauty with the snow clad
Himalayas on the northern flank, flowing mountain rivers, dense natural forests and wide
stretches of green tea gardens- the sight of which would attract one and all instantaneously. It
abounds in picturesque areas with immense potential for development of eco-tourism. Contrary to
Report
January, 2013
the political disturbance in the North Eastern states of the country, the scenario in Tripura is very
peaceful and development friendly.
The area receives heavy rainfall during rainy season. The rainy season remains active for over four
months. This region receives an average rainfall of 229 inches every year. The area is self
sufficient in its water resources. There are plenty of natural springs all around the area sufficient
for drinking water and supply to farming / industrial uses.
Under these premises it is envisaged that Tripura is ideally located and most suitable for the
instant project.
Tripura
Tripura is called the home of bamboo. The wonder plant is intimately interwoven in the sociocultural fabric of the State. Bamboo based economic activities are an intrinsic part of life; the
importance of the resource in the State's predominantly agrarian economy is well recognized.
Bamboo finds many uses, and is a major source of income and employment as well. It is estimated
that 2.46 lakh families in the State are engaged in bamboo related vocations.
5.2.2. Site Details

The proposed Factory site is Dharmanagar, Tripura. The factory site Master plan is attached in the
annexure 1.
Dharmanagar
Dharmanagar is a town located in the North Tripura district and is the second biggest town of
Tripura. It is located at 24.37 A0 North latitude and 92.17 A0 East longitudes. It is perched at a
height of 21 metres (68 feet) above mean sea level. The nearest airport is in Silchar and the
National Highway 44 (NH 44) connects Dharmanagar to Guwahati and other state capital in North
East. The dense forests of Dharmanagar are inhabited by Kokborok tribes.
5.2.3 Demographics
The estimated population of Dharmanagar was 32,912 in 2006. Males constitute 51% of the
population and the female constitute 49% of the population. 9 % of the population is less than six
years age. Dharmanagar has an average literacy rate of 85%, which is higher than the national
average of 59.5%. The male literacy rate is 87% and female literacy rate is 83%.
Report
January, 2013
5.2.4 Climate
Dharmanagar is blessed with a peaceful climate for most part of the year. However, summers can
be extremely hot, dry, humid and interspersed with rains and thunderstorms. Winter generally
starts towards the end of November and lasts until February, with temperatures reaching freezing
conditions. The monsoon season in Dharmanagar starts in April during the Bengali month of
Baishakh. During the monsoon season, Dharmanagar is inundated frequently due to excessive
rainfall and flooding by the local rivers.
Climate data for Dharmanagar

Month
Record
(F)
high
Average high C
(F)
Average
(F)
low
Record low C (F)
PrecipitaionInches
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Year
30
33
38
40
38
40
37
37
37
35
32
28
40
-86
-91
-100
-104
-100
-104
-99
-99
-99
-95
-90
-82
-104
23
25
30
31
31
31
32
32
31
30
27
24
29
-73
-77
-86
-88
-88
-88
-90
-90
-88
-86
-81
-75
-84
10
12
15
20
22
25
25
25
24
21
16
11
19
-50
-54
-59
-68
-72
-77
-77
-77
-75
-70
-61
-52
-66
11
16
18
20
21
20
15
10
-41
-43
-43
-52
-61
-64
-68
-70
-68
-59
-50
-41
-41
11.4
12.8
57.7
142.3
248
350.1
353.6
269.9
166.2
79.2
19.4
5.1
1,717.70
0.449
0.504
2.272
5.602
9.764
13.783
13.921
10.626
6.543
3.118
0.764
0.201
-67.626
5.2.5 Transport
The nearest airport to Dharmanagar is in Agartala with additional air field in Silchar. There is also
a helipad for helicopter rides or for quick journeys to the capital Agartala. Daily bus service runs
from Dharmanagar to Shillong and Guwahati, Agartala and other state capitals of North Eastern
states.
Train services were opened up after independence of the country. Daily multiple trains are
available from Dharmanagar to Assam and Agartala. At present two express trains stop at
Dharmanager along Lumding- Agartala route.
Report
January, 2013
5.2.6 Locational Advantage

The proposed factory land was developed by Govt of Tripura as an industrial park. The total area
is approximately 47 acres, it is fully walled with electricity and water connectivity. Dharmanagar
is the best and closest place for getting raw material supply not only from Tripura but from Assam,
Mizoram and Manipur. It is in close proximity to the Bangladesh market, the nearest seaport is
Chittagong which is suitable for export shipment. Moreover, for the 750MW Gas based Power
plant, main power grid goes through Dharmanagar. Law and Order situation is best in the state of
Tripura amongst North Eastern States.
5.2.7 Approvals & Permissions required

The Company explained that they need following permissions:
1. Permission from Directorate of Industries and Commerce
2. Permission from Pollution Control Board
3. Permission for installing and operating Boilers and Factories
4. Permission from Tripura State Electricity Corporation Ltd. for 12 KVA power load
5. Allotment of land Dharmanagar Industrial Park allocated by the TIDC and Govt of Tripura.
Formal letter will be released by Feb 2013 after the state assembly election is over.
6. Ministry of Environment & Forests- Will be under process as explained by the Company
All the above-mentioned permissions will be given by Tripura Development Industrial
Corporation under 1 window clearance. The Government of Tripura will hold 2% equity stake in
the project due to which the Company expects speedy clearances and approval from the One
Window clearance by TIDC.
Report
January, 2013
5. 3. Approach & Availability of Land
The proposed factory land will be given to Artisan on a long term lease from Tripura Industrial
Development Corporation (TIDC). The factory land has been acquired by TIDC and has been made
into an Industrial Park well connected by road to the main highway.
Total Area Requirement
Units
Area in Acre
Nurseries & lab
40 in Hatipara, Agartala
Fiber Board Unit
20
High Density Fiber Board Unit
15
Furniture Plant
Total
5
80
The proposed factory land was developed by Govt of Tripura as an industrial park. The total area
is approx 47 acres fully walled with electricity and water connectivity. The land requirements can
be divided into two parts;
5.3.1 Land for Tissue Culture Lab

The Company has got the forest department laboratory in Hatipara, Agartala which comes with
close to 40+ Acres of land for test plantation. The land has been used for bamboo test plantation
since inception; the test plantation land will be used as a part of the tissue culture lab for
undertaking various research works through test plantation. The lab is on lease for 35 years, the
lease period will be extended on expiry of the lease. The Hatipara tissue culture lab is close to
Agartala and is connected by road, the travel time from Agartala to Hatipara is approximately half
an hour by surface transport. As explained by the Company, the lease document will be available
to them by March 2013 as the state assembly election has been announced in Tripura. The current
plantation available in the tissue culture lab land can give close to 100,000 poles of bamboo and is
Report
January, 2013
utilized to the extent of only 20%. There is enough water supply for the lab and also for
plantation. Rain water harvesting is also done there.
5.3.2 Land for Proposed Factory

The company has been allotted 47 acres by the Government of Tripura. The land was developed
by Govt of Tripura as an industrial park. The Company can procure additional land adjacent to the
factory land if required from the general public as there is additional 40 plus acres of land
available adjacent to the factory. With the current available land of 47 acres the Company will be
able to house the proposed plants.
The Company is planning to have multi storied raw material storage as mainly bamboo chips and
less of bamboo poles will be housed. This has been planned as the Company is setting up bamboo
slitting units at the raw material pick up points. Bamboo chips will require smaller storage area
and also can be stocked in multi storied storage area in large containers.
The land has been studied by the plant suppliers and they have opined that area of 47 acres of
land available is sufficient for setting up all the proposed manufacturing units.
The factory site is well connected to the main highway, more than sixty percent of the land is
ready for construction and the rest is planned to be used after preparing the same for rain water
harvesting, the land has been allocated by the Govt of Tripura to Artisan Bamboo Products Pvt. Ltd
and the lease documents are in the process and will be completed shortly. There is a large natural
water body by the factory site and a provision for deep tube well for water supply. Additionally
the Company will do rain water harvesting to take care of daily water requirement for the plant.
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January, 2013
5. 4. Total Cost Estimation

COST OF THE PROJECT:
Nurs
&
FB UNIT
HDF UNIT
Lab
Furniture
Total
Plant
Budget
FIXED ASSETS
Land & Land Development
Land Area in Hectares
20
15
48
Cost
0.24
0.75
0.25
2.24
Covered Area in m2
800
100,000
50,000
20,000
170,800
Cost
0.08
20
10
34.08
Plant & Machinery
16
16
10
43
Miscellaneous Fixed Assets
0.14
2.23
2.23
1.4
1.46
39.23
28.98
15.65
85.32
0.05
0.1
0.1
0.25
0.1
3.5
5.4
11
Working Capital Fund
0.04
1.84
3.51
3.46
8.86
0.171
4.598
3.397
1.834
10
Buildings
Securities & Deposits

Pre-operative
&
Preliminary
Expenses
Interest During Construction
5.93
TOTAL OF OTHER ASSETS
0.31
8.49
10.51
10.79
36.04
TOTAL PROJECT BUDGET
1.77
47.72
39.49
26.44
121.36
MEANS OF FINANCE
Means of finance:
USD MM
Promoters' Equity & Reserves
36.41
Term Loan from Banks
84.94
Total Means of Finance
121.36
Report
January, 2013
5. 5. Infrastructure & Environmental Considerations

5.5.1 Water Availability
Daily requirement of water is to the tune of 2,000 litres per day. There are sufficient resources
available to meet the water needs as the area receives heavy rainfall during the monsoon season.
The region receives an average rainfall of 229 inches every year. There are plenty of natural
springs all around the area sufficient for drinking water and supply to farming / industrial uses.
Sufficient water is available underground and can be stored for manufacturing activities, drinking
purpose and sanitation.
5.5.2 Power Availability

The company has a sanctioned power load of 12 KVA which will be sourced from Tripura State
Electricity Corporation Limited (TSECL). The company also has standby generating sets for use
during the emergency or shut down period
5.5.3 Environmental Considerations

After a detailed study, it has been concluded that there is no major hazard or any significant
potential damage to the environment, be it ecological resources or social environment of the
location. The benefits from the project will far outweigh the minimal adverse impact. Further
details on the likely impact are explained as follows:
a. Potential impact on soil and on habitation surrounding the site- The impact on soil will be
minimal as all the buildings will be light single storied ones having no cranes for lifting heavy
loads. Bamboo will be coming in chopped up & will not cause any loads nor will the finished
products i.e. dismantled furniture have any load. No piling is required.
Gas will be used for firing boilers, hence there will be no pollution & therefore no impact on the
habitation surrounding the site. In fact no trees will even be cut down because the area is walled &
has been earmarked by the Govt. for factory purposes. No ponds will be filled up on the contrary
some ponds will be created for rain water harvesting.
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January, 2013
b. Impact on physiography and topography- Physiography i.e. nature in general would not be
affected as neither cutting of trees nor heavy earthwork would be involved for filling of ponds. The
topography inside the area earmarked will change slightly as some leveling will be required for
putting up buildings & making internal roads.
c. Impact on ecological resources- Ecological sources will not be affected in any way due to all
the points mentioned above. In fact the overall ecology will become better as denser bamboo
plantations will take place due to high quality saplings from tissue culture.
d. Impact on water resources- There is a large natural water body by the side of the proposed
factory land and Artisan plans to undertake rain water harvesting. Additionally, the Company
plans to have a deep tube well for standby water supply.
e. Impact on air quality- The impact on air quality will be minimal because gas will be used for
firing boilers & the smoke /exhaust will go through a set of filters before being discharged in the
air. Conversion of bamboo into MAIN BOARD does not involve generation of dusts. Further the full
factory premises will be having clean filtered air provision.
f. Impact on Flora, Fauna and Ecosystem- The impact will be positive as more bamboo will be
planted compared to cutting down. The flora will improve as the Company intends to help farmers
to grow flowers & orchids which will be sold.
g. Impact on Social Environment- The social environment will become better as considerable
work will be done on the surrounding society to bring up their standards. The idea is to make a
meaningful difference in the lives of people not only working for the company but in all
surrounding areas from where bamboo will be sourced.
There will not be any impact during design stage as the designing will be done at the offices of the
Machinery manufacturers & the Calcutta office of the Company.
During the construction stage there could be some amount of noise pollution & dust pollution.
However, it will be of a temporary nature & will not adversely affect the villages as they are at
some distance from the factory site. Some nearby villages include Dharmaragar (2.6km),
Abdullapur (19.2 km), Kailashahar (22 km), and many others within 45km from Dharmangar
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January, 2013
Environment Management Plan

Disaster
Mitigation
Earthquake
The State falls under Seismic Zone- V, the company has assured
that the design of the factory and plant will take care of
requirements.
Flood
No major rivers and plant location is not prone to flooding
Terrorist
No Terrorist Activity
Fire
Entire factory will have state-of-art fire alarm and fighting systems
Labor Unrest
Jobs are few in Tripura and as of date it has not been wracked by
any Labor Unrest
Systems
There will be 2 back-ups in 2 locations to ensure that data is not

lost for any reason what so ever.
Safety
CCTVS will be installed throughout the premises with guards on 4

shifts of 6 hours each to ensure safety of everyone
Power backup
Though Tripura is a Power surplus state, there would be

generators as standby in case of any disruption of power
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January, 2013
5.6
Project Implementation Schedule
Expected Date
Item
Nurseries
HDF Plant
MAIN
Furn.
BOARD
Plant
Land Acquisition
2013-Mar
2013-Mar
2013-Mar
2013-Mar
Land Development
2013-Apr
2013-Apr
2013-Apr
2013-Apr
2013-May
2013-May
2013-May
2013-May
Placement of Orders
2013-Mar
2013-Mar
2013-Mar
Delivery at site
2013-Mar
2013-Mar
2013-Jul
Erection & Installation
2014-Sep
2014-Sep
2013-Sep
Power Connection
2013-May
2013-May
2013-May
2013-May
2015-Feb
2015-Feb
2013-Oct
2015-April
2015-April
2013-Dec
Civil Construction
Civil Works
Plant, Machinery & other Fixed
Assets
Trial Production
Commercial Production
2013-Aug
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January, 2013
5. 7. SWOT Analysis
A SWOT analysis as detailed below would greatly facilitate the strategy formulation process for
establishment of bamboo-based industry in India.
Strengths
The project is strategically located. Bamboo resources are available in substantial

quantities for commercial exploitation. In addition, other necessary resources such as
water, electricity etc. are also abundant.
The varieties that grow in India lend themselves to most commercial applications.
Local farmers/ tribals possess the skills required for processing bamboo.
Bamboo by itself has several advantages some of which include - growth on degraded
lands, relatively lesser quantities of pesticides required, faster growth, higher yields, and
many more direct and indirect benefits.
Artison has multinational presence. The Company has its offices spread across US, Europe
and Asia thus enabling quick marketing access.
Integration with farmers would enable sustainable supply of raw material. Thus, industry
and community can be integrated profitably in this project.
The learning to set up the industry is already established through experience with wood
industry and the availability of technical expertise and equipment.
Low per capita investment and high employment potential.
The industry is pollution free.
Government support is available during set up as well as during the operational phase.
There are not many players in the industry and hence there is hardly any competition.
There is absolutely no wastage of raw materials.
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January, 2013
Weaknesses
Industry & consumers perceive bamboo as a low-value-addition product as there is a lack

of awareness about modern and new uses of bamboo.
The market channel for raw & semi-processed bamboo is still in its infancy.
Rapid depletion of bamboo resources because of non-selective cutting.
In the absence of scientific propagation, there is a shortage of good quality planting

materials for developing plantation on a large scale.
There is very little technical guidance available for bamboo cultivation & processing.
Most of the Bamboo growing areas, the North East Region (NER) are not yet ready in terms
of infrastructure or industrial climate. The terrain is difficult and transportation costs are
prohibitive.
Lack of marketing outlets/ intelligence.
Opportunities
With depleting forests, Bamboo offers an excellent substitute for wood.
Almost 1000 million USD worth of raw bamboo is available in North Eastern India alone
(54 percent of 90 million tons). Even a two-fold value addition can create an industry
worth 2000 million USD in about five years.
With little technological input, scientific nurseries can be developed to propagate high
yielding variety of bamboo species and large plantations can be developed in both
Government and private sectors in high rainfall areas.
The productivity and efficiency of the primary processing of bamboo can be enhanced by
introducing and training farmers in using simple machines.
Government restrictions on felling and use of timber coupled with declining wood
resources all over the world, encourage the market for substitutes like Bamboo.
There exists not only a large domestic market but also a growing export market for
bamboo-based products. In addition, these markets for bamboo are only considered to be
in their infancy.
Indian bamboo industry is estimated to reach USD 5 Billion and Global market is estimated
to reach almost USD 20 Billion by 2015, implying significant growth potential for bamboo
and its derivatives.
The National Mission on Bamboo Technology and Trade Development under the Planning
Commission, has estimated that if proper encouragement is given to bamboo cultivation
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January, 2013
and its use, it can replace the projected import of timber to the tune of Rs.300,000 million
in the next 20 years i.e. 2025.
Threats
Aesthetics of bamboo products may not fully fit in the Western market.
Use of toxic materials for preservation and gluing that are not allowed in the Western
market may lead to rejections. Also, there is a high environmental burden of transport to
the West.
Bamboo products from other parts of the world will also enter the world market once the
demand picks up.
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January, 2013
5. 8. Socio-economic & Environmental Impacts
The project shall have an immense role to play in the Indian as well as the Global context. The
benefits from the project can be summarized as
I. Employment Generation at rural level more than 3000 persons will be directly and
indirectly engaged in the project activities.
II. Socio-economic Development of Backward Areas- The project envisages uplifting the living
standards of tribals, rural farmers and employees through income generation, social and cultural
activities. Development of ancillary production centers for components of Bamboo based Boards
as well as income generation programs at rural areas will boost the rural economy. More use of
bamboo will reduce import of timber, thereby preserving foreign exchange. The project would
also provide job opportunities and livelihood security to a large number of work forces who would
be indirectly engaged with the project.
III. Environmental Benefits- Bamboo is a grass, and is the most diverse group of plants in the
grass family. It belongs to the sub-family Bambusoidae of the family Poaceae (Graminae). It is the
fastest growing renewable resource on earth. Bamboo produces over 35% more oxygen than trees
generating a significant increase in carbon sequestration. Bamboo grows merrily in degraded and
barren land and can be used as a windbreak and erosion control measure. Compared to popular
hardwoods like Teak and Sal which take 100 years or more to mature, bamboo matures and
becomes industrially useable in 4 years. Besides, Bamboo Boards are much stronger materials
than Teak or Sal and as such much lesser volume material can be used to perform the same
structural task. Given the opportunity bamboo can take some of the tremendous pressure off of
our precious forests and thus reduce the environmental damage brought on by cutting trees.
IV. Trend Setter - This integrated bamboo project will become a model industry for many other
entrepreneurs / industrialists, especially in the forestry & wood sectors in India and other
developing countries.
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January, 2013
Environmental impact
Cultivation and harvesting: Bamboo has a number of environmental benefits as compared to
industrial economic development options. The main environmental benefits of bamboo include:
Bamboo is a sustainable cropping system for sloping lands, reducing soil erosion, and
delivering sustainable farming systems;
Bamboo is suitable for the recovery of degraded lands;
Bamboo reduces rain run-off and downstream flooding and retains water within the
watershed;
Bamboos rapid growth rate and selective harvesting sequesters up to 12 tons of CO2 per
hectare. It releases 35% more oxygen than equivalent areas of trees; and
Bamboo may be produced with comparatively low inputs of fertilizer and pesticides
(proposed models in this analysis have zero inputs assumed).
However, one main drawback is the biodiversity risk from the development of bamboo
monocultures, but this risk needs to be considered in relation to the costs of alternative land use
options.
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January, 2013
5. 9.
Initiatives for Agri Business development for Tripura Tribes

with Government of Tripuras assistance
While the Company is doing the project for replacing use of wood (consequently felling of trees)
by bamboos it has to interact with the bamboo growers majority whom are Tribals and the
Company is also going to introduce bamboo growing to new tribals in forest land Which will be
allocated by the Tripura Govt. (as enumerated by them).
Currently Bamboo saplings for the entire North East region have to be purchased from faraway
places in North India and Western India as tissue culture has not developed in the North East.
Apart from running the factory Artisan would also be:
Setting up a large tissue culture organization for supplying bamboo saplings to existing
bamboo farmers as also supplying saplings to would be bamboo farmers who would be
allotted land for this purpose by the Govt.
Train existing bamboo farmers to increase their production seven fold (to reach China
standards) and teach the tribals (who would be starting fresh in Govt. allocated forest
land) the methods of bamboo agriculture right from scratch preparation of land onwards.
This would initiate a continuous and intensive interaction with them.
To gain their confidence (as they are very suspicious about non tribals particularly from
main land India) it will be necessary to take an active part in their daily life.
Currently what they severely lack is:
Hygiene, clean drinking water & sanitation
Medical facilities
General Education
Specialized education with reference to bamboo growing and working in the
factory
Sporting activities
Clean entertainment to woo them off drinking
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January, 2013
It is Companys intention to take care all the above deficiencies to enable the tribals to become an
integral part of the company in particular and Tripura society in general.
UNIDO UNIDO have expressed interest for training and know-how transfer for the Bamboo
sector.
UNIDO in Brief
UNIDO is the specialized agency of the United Nations that promotes industrial development for
poverty reduction, inclusive globalization and environmental sustainability. The United Nations
Industrial Development Organization (UNIDO) is a specialized agency of the United Nations. Its
mandate is to promote and accelerate sustainable industrial development in developing countries
and economies in transition, and work towards improving living conditions in the world's poorest
countries by drawing on its combined global resources and expertise.
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January, 2013
5. 10. Plants & Equipments

The project uses State-of-Art German technology for manufacturing various products derived
from Bamboo (furniture, flooring, wall panelling, etc). This is a 100% EOU (Export Oriented Unit)
5.10.1 Plant Design

The design would take care of all civil work. The Plant Design for Dieffenbacher would be done in
conjunction with personnel from Dieffenbacher. The plant design consultant will coordinate with
Dieffenbacher and design the structure where Dieffenbacher plant will be set up. This structure
will be a part of the overall structure for the entire plant.
The Design Consultant for the project is ERG, Bangalore. ERG is one of the premier design
consultants in Southern India and is mainly into project implementation and detailed engineering.
Since its inception in 1982, ERG has worked in a wide range of project areas with differing
requirements, operating conditions and project parameters.
Initial study and design and finalization will take between 90 to 100 days starting from Feb 2013.
The framework for the plant is attached. Please see Annexure 2 & 3.
5.10.2 Equipment Supply Contracts

Equipment supply has been already discussed and quotes received from Dieffenbacher, Homag
and IMA for supply of Capital Goods. It will be tied up firmly through Purchase Order, once the
Financial Closure takes place. The following table shows the details of the suppliers and the offers
obtained by them. The orders need to be places to the vendors. The vendor will take 4-10 months
to deliver the plant & machinery. The Delivery, installation and key terms for the vendors as
verified from the quotes received by the Company are as follows;
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January, 2013
Vendor Details & Key Terms of Supply

Suppliers Name
Suppliers Details
Plant
Cost
Delivery Time
Specification
HOMAG Group
HOMAG Group AG is the
They will supply
Euro
worlds
plant
leading
to
1.98
Delivery Time: 4
months from date
manufacturer of machines
manufacture low
and equipment for the
end flat furniture.
woodworking industry. As
I.
a global player, HOMAG is
Consisting of
months from date
present in more than 100
Ambition
of order.
countries and hold an
(Edge Banding)
Final Production:
estimated
BAZ 300 (CNC)
8 months from
share of the market. The
BHX
date of order
Group is pioneer in the
(Optimat)
field
HPL 570 (Panel
Euro
Cutter)
28
of
percent
furniture
manufacturing, structural
elements
and
Large
Line
Installation
&
Commissioning: 6
2260
500
timber
frame house construction.
of order.
0.25
Payment
II.
Small
Line
Term
Consisting of
30%
Ambition 1430FC
advance
(Edge Banding)
60%
BHX 050 (CNC)
Balance on
delivery
HPP 250 31/31
10%
(Panel
Payment
Cutter)
after
trail
PTP 160 +
run
and
final
production
DIEFFENBACHER,
Dieffenbacher,
is
the
international
company
Complete
Euro 25.58
Delivery
Time:
production
line
12 months from
group for press systems
for
the
Payment
date of order.
and
manufacture
complete
of
Term
Installation
&
manufacturing plants for
fiber board with a
30%
Commissioning:
the wood-based panel, the
single opening
advance
18 months from
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January, 2013
automotive
and
supply
industry.
press, type HPOG
60%
299 - 25,33 P,
Balance on
with
delivery
20 months from
10%
date of order.
design
capacity
of:
Approx.
500
m/year.
based
date of order.
Payment
after
trail
on 16 mm board
run
and
thickness
final
and
2.440 mm board
Final Production:
production
width
IMA
The
and
Euro
system provider of panel
Two Lines
months
processing
Consisting of:
Payment
date of order.
installations
3.20
Delivery Time: 5
(Furniture Plant)
for
manufacturer
from
Installation &
the
woodworking
PRFU
1200LU
Term
industry.
IMA is the
Panel
Return
30%
Commissioning:
company in the field of
System
advance
7 months from
machine technology and is
BIMA 400V Edge
60%
date of order.
renowned for high degree
Banding
Balance on
of innovativeness, benefit
Novimat Contour
delivery
9 months from
to the industry &
Edge Banding for
10%
date of order.
Round
Payment
cost-
effectiveness.
Corners)
&
CNC
after
trail
Drilling
run
and
Advantage 320
final
Panel Cutter
production
Final Production:
Kirloskar India will supply Back up for Generators, besides the Company has provided a list of
equipments which are procured domestically.
Besides, the Company has identified vendors for communication system, office furniture,
electrical. These vendors are regional and provide competitive services.
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January, 2013
List of Equipments to be sourced domestically

INR MM
USD MM
Conveyor Belt
40.00
0.73
Fork Lift ( Diesel and Battery)
12.00
0.22
Generator 2x1 MW
20.00
0.36
Solar Panel
40.00
0.73
Gas based Boiler
8.00
0.15
Gas Based Co-Gen Unit
35.00
0.64
Computer (Desktop/Server/Printer)
10.00
0.18
Software (Customized)
50.00
0.91
Communication System
2.00
0.04
Truck x 8
10.00
0.18
SUVs x 3
4.50
0.08
Motorcycle and Cycles
0.50
0.01
0.00
0.00
15.00
0.27
3.50
0.06
5.00
0.09
Vehicles
2.50
0.05
Guest House
12.50
0.23
Total- INR MM
270.50
4.92
Others
59.50
1.08
Total
330.00
6.00
Agartala Office ( Head Office / Tissue Culture Lab)
Computer, Printer, Server, Communication Equipment &

Software
Vehicles
Kolkata Office (Liaison)/Furniture Show Room (Rented)
Computer, Printer, Server,Comm Equipments &

Software
5.10.3 Note on the Technology

The Technology for the project is well established and has been proven. The Technology is
standardized and is devoid of any significant challenges. All the processes are automatic or semiautomatic reducing the need for intensive human intervention. The Company, wherever
necessary, has entered into tie ups with laboratories, board machinery manufacturers etc to
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January, 2013
minimize the surprises. The machinery purchase involves training of the work force on
operations.
5.10.3.1 Tissue Culture Lab & Nursery

The Technology is well proven and involves treating the seeds/rhizomes/ shoots & processing
them further. The Company has entered into technical tie up with renowned Vivekananda
Institute of Technology, Nimpith for technical support. The nature of tie up is described in
Business Viability Section. The Company will also recruit Ph.Ds to help it further the Research &
Development.
In the recent years, various State Governments have been putting emphasis on R&D initiatives in
Bamboo Shoots Industry.
A National Bamboo Committee, a multi-disciplinary task force, has been set up to review and
advice this sector. The other Ministries that will be looking at bamboo are the Ministry of Textiles
that will focus on handicrafts, the Ministry of Industry on Industrial Applications, the Ministry of
Food Processing into the needs of the fledgling bamboo shoot industry, and the Department of
Science and Technology (DST) will look at the research and development needs through a chain of
laboratories in the bamboo growing areas particularly in the North Eastern States. The Ministry of
Commerce will oversee export development. At the State Government level too a number of
initiatives are under way. A number of leading Institutions in India have been primed to
participate in a coordinated project framework for the development of design and technology
resources for the bamboo sector. These include National Institute of Design, The National Institute
of Fashion Technology, The Indian Institute of Technology, The Indian Plywood Industries
Research Institute, the Regional Research Laboratories of the Council for Scientific and Industrial
Research (CSIR) and the Department of Science & Technology network.
5.10.3.2 Technology, R&D in Plant for Fiber Board design

The main board plant is being procured from Dieffenbacher, Germany. Dieffenbacher is the only
wood based board plant supplier which has worked along with Artison.
With German
Government aid, it has done extensive R&D to use Bamboo as a raw material to make Particle
Board (PB), Medium Density Fiber Board (MDF), High Density Fiber Board (HDF) and Oriental
Strand Board (OSB). The process is same which is used for making the boards from wood. The
differential factor comes in the pre processing where the fiber and strips are made from Bamboo.
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January, 2013
The machines used to make fiber and strips from wood are also same, R&D was done to utilize
same machines to handle the characteristics of Bamboo (Density, tensile strength, humidity,
silica). The final test reports have come out very satisfactory (Annexure 4- Bamboo Results).
In absence of any standardized parameters of testing for most of the bamboo boards, available
norms of testing for plywood and natural hardwood are followed for bamboo boards. Extensive
research is being carried on to deduce suitable adhesive and process parameters to print bamboo
in cold setting condition i.e. without using heat energy. This would not only reduce both capital
and production costs but shall make the products even more eco-friendly.
The research carried by Artison group, over the years has enabled them to develop a wide range of
Fiber boards by using Bamboo in various forms and synthetic resin of international grade. The
manufacturing process is described in Business Viability section.
5.10.3.3 Technology in Flat Furniture Package Manufacture

At present, the technology for converting Fiber Boards and into flat furniture package is readily
available. The technology for wood based and bamboo based furniture is same. Computer Aided
manufacturing process is used. The integration of designing and manufacturing is done through
computer and related software. The manufacturing process will create knock down (KD) slabs.
They require only basic tools, often using supplied parts. These fittings can be used as a complete
assembly method or in conjunction with traditional joining methods to construct a successful
piece of furniture.
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January, 2013
5. 11. Availability & Requirement of Workforce
The manufacturing process is technology intensive and has comparatively low level of labour
requirement in terms of number and skill, the labour for the manufacturing of Projects would be
easily available locally.
A Number of initiatives have been taken in Tripura and north eastern region of India by
the successive Governments. Some of these can be summed as follows;
Initiatives for employment generation in it sector in north eastern region.
Skill development initiative scheme (SDIS) in north eastern region.
Up-gradation of educational institutions.
Development of socio-economic infrastructure in the north eastern states.
Infrastructure development in north-east on fast track.
Expansion of technical education by establishing more colleges in Engineering, Nursing

and Paramedical institutions in private sector.
Promotion of 100 per cent enrolment in primary schools. Supervision of education

programme up to higher secondary levels.
The State has one Central University and one private University (ICFAI), 15- General
Degree Colleges, 1- Institute of Advanced Studies in Education, 2- Engineering Colleges, 3Polytechnics, 1- Govt. Law College
Requirement for the Project

Sl No
Particulars
Manpower/Shift
Shifts
Total Manpower
Dieffenbacher
40
120
Homag
20
60
IMA
20
60
CEFLA
15
Others
17
51
102
306
We do not foresee any challenge in procuring the required technical and non-technical
manpower for the project.
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January, 2013
5. 12. Bamboo- Value Capture
Bamboo has been subjected to extensive testing by different organizations and found to be a
suitable substitute for wood. The Value Capture as discovered by eminent organizations is
reproduced below;
Limitation
Intervention
Solution & Source of Technology
Low diameter
Alter / change shape to match
Sectioned bamboo pieces to be
Architectonic & constructive details.
machined into slats/ flats &

veneers indigenous
Decay
The need is to improve permeability by sap
Sectioned bamboo pieces to
removal for facilitating impregnation.
pass through impregnator for

lateral penetration (Modified
Boucherie treatment)
Indigenous
Durability
To improve durability and
Components
endurance the need is to apply long lasting
noninvasive
chemical treatment for antifungal
and non-toxic chemical
and anti-termite attack.
treatment indigenous
To control the refractory behavior
Components to pass through
permeable
the need is to apply controlled
gradual and controlled moisture
Behavior
pressure & drying techniques.
removal system indigenous
Strength variation
Composite structure like bamboo + bamboo
Non-invasive and saturated
or bamboo + wood veneer using cross
polyester resin technology using
lamination
temperature, pressure and
Refractory
&
non-
techniques
under
controlled
to
be
pressure, temperature and adhesives for
composite
bonding
indigenous
Elasticity & form
For reduction of elasticity the
Moulded form and structure
Memory
components
needs
to
be
sufficiently
given
construction-
using saturated polyester and
compressed and /or bent to permanent
pressure construction:
shape.
indigenous
Hygroscopic &
Surface coating of components will make
Non-invasive and uniform
Hydrophilic
them permanently resistant to moisture.
coatings to be applied on the

surface of the components:
imported
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January, 2013
SECTION
6:
Business Viability
Report
January, 2013
Business Model
The project is set up as an integrated model- from developing bamboo saplings to manufacture
bamboo based fiber boards and using boards to manufacture the flat furniture modules. The
Bamboo saplings will be developed in a Tissue Culture Laboratory, while the Company is setting
up three units to manufacture fiber boards and furniture modules respectively. The Business
process of the Company can be depicted as below;
Integrated Business Process: Artisan Bamboo Projects Limited
Tissue Culture
Bamboo Saplings
Bamboo Poles
Fiber Boards
Furniture
Panels
Source: Company
The Company plans to have four business streams in order to have an integrated business model.
The business streams can be depicted as below;
i)
Saplings developed in in-house Tissue culture lab and nurseries
ii)
Manufacture of Medium Density Fiber Board
iii)
Manufacture of High Density Fiber Board
iv)
Manufacture of Flat Furniture Module
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January, 2013
6. 1. Tissue Culture & Nursery
One of the major hurdles for large scale plantation is timely supplies of required quantity and
quality of saplings for planting. As such it is a necessity to have in house facilities to establish
nurseries to raise saplings both by way of vegetative propagation and by means of micropropagation or tissue culture.
The project envisages taking over existing Laboratory for Tissue Culture owned by the Forest
Department, Agartala, Government of Tripura and a Centralized Nursery for sapling propagation
in a key location in Tripura. The Company will also establish number of sapling centers in bamboo
growing areas having a total capacity to produce 6 million saplings per annum. The tissue culture
lab of the Forest Department at Hatipara, Agartala is capable to take care of the total number of
saplings. The current lab needs to be capacity augmented. The expense for the same is accounted
for in the head of Nurseries & Lab in the Budget of the financials. Total cost is $ 1.42 Million
allocated for the tissue culture lab.
The process of Bamboo plantation starts with planting saplings. The saplings can be developed
through tissue culture method. The development of bamboo saplings occurs through various
methods. Bamboo plant flowers rarely, in a life span of 60 to 100 years, therefore propagation
through seeds is rare. Vegetative propagation is the most commonly used method, however, the
quality and breed can-not be guaranteed as the resultant plant could be different from the mother
plant.
The Company plans to develop saplings through tissue culture under controlled environment and
through vegetative planting method as most of the Bamboo plantation in India conforms to
European Standards for manufacture of bamboo based MDF and HDF.
Tissue culture, also known as micro-propagation, is used to produce plants under sterile conditions.
The method uses Rhizomes or shoots or seeds that have been sterilized before being placed in
containers with a growing medium (usually a gel) that has some nutrients added.
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January, 2013
Methods of Bamboo Propagation
Bamboo Propagation
Seeds- Flowering
Vegetative Propagation- Planting
Rhizome/Offset
Culm Cuttings
Tissue Culture- Controlled
Macro Proliferation
Cuttings
Branch Cuttings
Rhizomes
Shoots
Source:Company
6.1.1 Tissue Culture Lab- Development of Saplings

The Company has taken over the existing tissue culture lab from Forest department, Government
of Tripura for long term lease. The Company will modify and upgrade the existing lab at an
estimated cost of USD 1.00 Million. In addition, the project will allocate extra budget to augment
the current infrastructure present at the current location (Please See Annexure 5 for existing
infrastructure.)
Process of Tissue Culture
Stage I - Initiation
Stage 2 Tissue culture propagation

Stage 3 Preparation for transplanting in the Green
house
Stage 4 Transplanting in the Green house

Stage 5 Production of liners
Source: Company, Market Research
Report
January, 2013
The Tissue Culture Lab of the Forest Department was set up with the help of TERI but was not
utilized to the full capacity. The Lab also comes in with a test plantation area of approx 40 acres of
land where various species of bamboo saplings developed by the lab has been planted for testing.
The Company has taken the lab on long term lease.
6.1.2 Technological Tie up for Development of Saplings in Tissue Culture Lab
The Company has entered into technological tie up with Vivekananda Institute of Technology,
promoted by Sri Ramkrishna Ashram, Nimpith. This Institute is under The Core Support Program
of Department of Science and Technology, Government of India. It has set up a Modern Rural
Technology Resource Centre with advanced research and development facilities, well equipped
with modern R & D Instruments like Gas Chromatograph, ELISA reader and washer, Multi-ocular
Microscope, etc. In addition, this centre is a self sufficient and training centre functioning as a
platform to incubate the entrepreneurs. This centre is endowed with recognitions such as
Technology Resource Centre of CAPART, Post Graduate Research centre of Burdwan University,
and Scientific and Industrial Research Organization (SIRO) by The Ministry of Science &
Technology (Government of India). (Annexure 6 -Letter from the Institute). They would depute
people to the tissue culture lab at Agartala to help grow quality saplings of bamboo, train the local
recruits and also to help in plantation (soli-testing, manure selection) at the ground level with the
farmers and tribals of Tripura and adjacent states of North East.
Major Activities of Vivekananda Institute of Technology are;
A. Development / adoption of multi-skilled biotechnology packages:

Multi-skilled biotechnology programs are developed with the following components:
i) Biofertilizer Technology comprising of Soil testing and fertilizer recommendation, and
production and application of Blue Green Algae, Azolla, microbial biofertilizers, biocontrol agents
(bio pesticides)including botanical pesticides & vermicompost.
ii) Horticultural Technology involving macro-propagation, micro-propagation, mushroom
technology and apiculture.
Report
January, 2013
B. Development of skilled rural knowledge workers (Sampad Karmis) through competency based
training on the developed technology.
They have been commercially producing Banana Tissue Culture Seedlings & selling/supplying
then to a large no. of farmers in the Sunder-ban area & have earned a worldwide reputation for
quality tissue culture work. The Company also stated that it may not be out of place to mention
that in the year 2012 they have been adjudged to be one of the best in the world.
6.1.3 Proposed Planting Scheme- Key Support Activity for Manufacture of

Fiber Boards.
The project envisaged will have a total requirement of 36 million bamboo poles (about 900 million
m/t green bamboo) per annum at the optimum level of Integrated Bamboo Project. It is estimated
that 36 million bamboo poles can be derived from about 4.5 million bamboo culms. Assuming that
about 25% of the bamboo poles extracted can be procured by this industry and the balance 75%
would go to other industries / uses / mortality, the need would be to raise plantation of 18 million
culms.
The Company has developed a plan to tie up with farmers / planters / small entrepreneurs
whereby
they
will
be
trained.
The
Company
has
identified
numerous
such
farmers/planters/entrepreneurs and will enter into buy back arrangement with them. The
Company will train with the latest methodology.
The total land required for the plantation scheme is available abundantly in Tripura near the site
of the proposed factory. Tripura Govt / Bamboo Mission with the help of the forest department is
allocating 175,000 ha of forest land to the tribal population. They are scattered in the whole of
state of Tripura majority of the allocation is within 100 km radius from the factory land at
Dharmanagar. The buy-back will be done directly, through Forest Department and also through
agencies of Govt of Tripura. The Company also proposes to set up bamboo splitting units near the
collection centers which will be a further value add to the farmers and tribals before they sell the
raw bamboo poles back to the Company. This helps in reducing the transport cost as raw bamboo
pole are filled up with air and once it is split, the weight of air is reduced.
The Bamboo poles will be used as key raw material for manufacture of Main Board and HDF
boards by the Company. The Company explained that this is a support activity to ensure
availability of the quality bamboo poles for the integrated project.
Report
January, 2013
6.1.4 Key Raw Material for Tissue Culture
The Company will purchase rhizomes, shoots and refined seeds for tissue culture from identified
sources. As per the market study, the prices of these key raw materials have been studied with no
marked negative impact on the business cycle of Companies engaged in tissue culture of Bamboo.
The Company has already developed a vendor list for the above. Vivekananda Institute has
network with exiting vendors which will be used to procure these locally.
At the 100% capacity utilization, the Company will require around 600,000 units of rhizomes,
shoots and refined seeds. At present, the price of one unit is around USD 0.6.
The rhizomes, shoots and refined seeds which are collectively known as explants will be tested
and treated in the laboratory.
In addition, the Company will require key chemical for treatment and sterilization. The chemical
will be sourced locally. They are abundantly available. The prices of these chemicals have
fluctuated in the past, however the cost of chemicals forms only 1.5-2.0% of the total costs and is
insignificant.
The Company plans to employ locals for the tissue culture labs. The requirement for tissue culture
lab can be summarized as follows;
Sl No Particulars
Nos
Ph. D.
Post Graduates/Graduates
Admin
General Labour
15
The Company do not foresee any shortage of manpower for the Nursery/Tissue Culture division.
Also, with technical inputs from Vivekananda Institute of Technology, the Company can draw
significant manpower sources as and when required. The Government of Tripura has been
training tribals in various methodologies of Bamboo plantation due to which the State has no
dearth of knowledge based manpower.
Report
January, 2013
6.1.5 Sales Analysis of Saplings & Viability

i) Current Situation- At present, the bamboo saplings are being bought by the Forest
Department / Govt of Tripuras Bamboo Mission from Punjab and Pune and are not of high quality
and gets damaged on transportation. The Bamboo saplings require specialized transportation. The
key challenges faced by Government agencies in Tripura can be summarized as follows;
1. Non availability of quality saplings in required Quantity
2. Difficulties in Transportation as the roots should not be disturbed.
3. Hilly Terrain of the State as 70% of Tripura is classified as Hilly area.
4. Time taken in transportation at times makes the roots in-eligible for plantation.
ii) Target Market- The Tripura Bamboo Mission is Initiative of the Government of Tripura to
develop the bamboo sector in the state in to improve the livelihood of the populace. The mission
aims to improve the complete value chain from plantation & to marketing of finished products.
The Company has received encouraging response from various Government agencies. The
Saplings developed by the Tissue Culture Lab will be bought by Forest Department / Bamboo
Mission (Govt. of Tripura) for further distribution to the home grown farmers and tribals in
Tripura. Govt. of Tripura and the Forest Department is allocating 175,000 hector of forest land to
the tribals, encouraging them to get into agriculture. The Bamboo saplings will be given to the
Tribals for growing the same in the allocated forest land and Company will buy back the same
from the Tribals which will give them sustained revenue.
As per the Company, it had already initiated talks with the Government of Tripura whereby the
Government has shown keen interest to purchase the saplings at market prices. The cost to the
local Government for procurement from Artisan will be cheaper by at least 20% as the
transportation and wastage cost will be minimized. The Company will have a preferred vendor
status as the Lab is in Tripura. Therefore, no selling pressure is foreseen.
Report
January, 2013
6. 2. Manufacture of Bamboo based Fiber Boards
Keeping in mind the versatility of bamboo, the project aims primarily to manufacture a wide range
of Bamboo Boards (MDF, HDF) for multiple applications by eliminating the negative
characteristics of bamboo and blending the same with its positive parameters in order to produce
a wood replacement material which is not only environmentally friendly but a much superior
product than most popular hardwood.
Bamboo based Particle Board and MDF Boards are engineered product, which enhance the
inherent qualities of Bamboo by a few folds and also eradicates its demerits/ defects. Appearances
and impact on environment apart, extensive tests have established bamboo composites as one of
the strongest building materials.
Medium Density Fibre Board- This is an engineered product formed by breaking down bamboo
residuals into fibres, often in a defibrator, combining it with wax and a resin binder, and forming
panels by applying high temperature and pressure. MDF is denser than plywood. It is made up of
separated fibres, but can be used as a building material similar in application to plywood. It is
stronger and much denser than normal particle board.
High Density Fibre Boards- It is also known as Hardboard and is similar to particle board and
medium-density fiberboard, but is denser and much stronger and harder because it is made out of
exploded fibers that have been highly compressed. Consequently, the density of hardboard is 31
lbs. or more per cubic foot (500 kg/m)[1] and is usually about 50-65 lbs. per cubic foot (8001040 kg/m). It differs from particle board in that the bonding of the wood fibers requires no
additional materials,[2] although resin is often added. Unlike particle board, it will not split or
crack. It is used in construction and furniture.
Report
January, 2013
6.2.1 Plan of Manufacture
The Company plans to manufacture MDF/PB and HDF in-house by setting up units in an
integrated complex. Milled made bamboo slats of defined size & thickness are treated & seasoned
together, under pressure and heat, to form Boards. Apart from its look, MDF and HDF are readily
accepted in the market for its strength and durability. Boards have extensive applications in
flooring, wall cladding, furniture making and such other high end applications. Bamboo based HDF
and MDF reveal that Bamboo has many superior properties than even the well-known Timber
species like Sal & Teak.
6.2.2 Manufacture of Fiber Board- Quality Checking Procedure
Steps Process
of Tests
Immediate Quality Control
Manufacture
1
Selecting culms ready Physical

for
harvest
Tests- QC1 : Selection of species suitable for
& colour,
procurement
of shape,
bamboo poles
processing. QC2: Measurement of

diameter
& proper thickness and edge
wall
straightness and sorted depending on
thickness
species, thickness and size Density in
Density Test
g/cm3=M / L wt. M=oven dry mass in

g. L= length in cm. W= width in cm. L =
thickness in cm
Machining of bamboo Physical Tests- with QC3 : to ensure required width, length
to produce slivers / micro
slats / flats / veneers.
& thickness
meter & measuring

tapes
Mycological tests.
Sap removal by cold
QC4 : Use of natural non-toxic
water
repellent to ensure resistance to borer
leeching
&
boiling
& termite attacks
Report
January, 2013
followed by
impregnation
with
non-toxic
chemicals
4
Reduction of moisture Moisture Content-
QC 5 : Moisture varies from 6% to
content by open air and Physical tests with 8%

heat kiln drying by Moisture
gradual drying
5
Gluing
Meter
using
low Testing of glue
formaldehyde
Formalin
emission resin
tests
QC 6 : Uniform spreading of glue
emission
Laying slivers/ slacks Timing, Temperature,
QC 7 : Checking of timing,
flat on flat basis or side & Pressure control
temperature and pressure in Hot
by
Press
side
or
cross
of
glued Glue adhesion test in QC 8: Average and minimum
banding.
7
Pressing
slivers / slats/ flats/ dry
&
wet
fibres/ woven mats in Tensile
state individual shear & tensile strength
Strength (N) measured parallel to grain
hydraulic hot press at Modulus of Elasticity Higher the MOE, better the ability to
required
timing, (MOE)
temperature
resist bonding MOR to measure the
& Modulus of Rupture max. Compressive or tensile stress in
pressure all of which (MOR) Nail & Screw the fibres at the point of fracture. To
varies
for
glues
different Holding Strength
and
composites
for
assess the nail & screw holding

capacity of composites manufactured.
for
different applications.
8
Formation
composite
of Physical checkpanels
boards / sections
QC 9: The square ness and edge
/ Determination
of straightness
dimensional
checked.
of
composites
are
tolerances
9
Composites of bamboo Physical checkgiven a
Determination
QC10: Visual defects like blister,

of check,
discoloration,
insect
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hole,
January, 2013
final touch by sanding visual
joints, splits, sand off, polishing
and
effects are checked.
Defects
polishing
10
Pre-dispatch conditing Physical

by
removal
of
res. Moisture
moisture and defects.

11
check
of QC 11: To ensure moisture content

between 8% to 12%
Content.
Stamping of batch no, Physically cross check QC 12: To proper stamping

size,
thickness and brand.
12
Packing and dispatch
Physically cross check QC 13: To ensure proper packing &

loading
Report
January, 2013
6.2.3 Manufacture Process Flow Chart

Bamboo Sectioning
Process Waste
Store
BSB-FT
BSB-FT
OS Knot R
OS Knot R
Splitting
Splitting
IN Knot R
2 Sides Planning
Chemical Store
Treatment
IN Knot R
BSB-FT
5 Sides Planning
& Shaping
Splitting
IN Knot R
Chipping &
Pulverising
2 Sides Planning
Treatment
Fuel for Co- gen
OS Knot R
Drying
Treatment
Flattening
Drying
Drying
Resin Store
4 Sides Planning
ngLayering &
Pressing
ng Layering &
Pressing
Reference Cutting
5 Sides Planning &

Shaping
4 Sides Planning
Layering &
Pressing
DD Saw
4 Sides Planning
Drying
2 Sides Planning
Layering &
Pressing
Glue Mixing
Mat Forming
DD Saw
4 Sides Planning
Pressing
Finger Jointing
DD Saw
Sanding
Coating
Material
Store
Coating
Material
Store
Coating
Sanding
Sanding
Coating
Packing & Delivery
Floor Tilesg
Packing & Delivery
Finger Jointing
Furniture Sections
Packing & Delivery

House Frames
Sanding
Packing & Delivery
Other
Report
January, 2013
6.2.4 Plant & Machinery and Vendors- Fiber Boards

As explained earlier, the Company has worked along-side its key vendors to undertake the
required modifications for Bamboo. The Company has selected world renowned suppliers for the
key machinery component with after sales support.
6.2.4.1 Suppliers of Board Plant & Finishing Line
Dieffenbacher- The Dieffenbacher Group of Companies is one of the worlds leading

manufacturers of complete production plants for the wood based panel industry, the automotive
and components industry. The Company presses from a single source and develops all decisive
process components within its group. The Company export about 70 % of the products worldwide
and provide an efficient international sales and service organization for its customers.
Dieffenbacher is certified in accordance to the quality directives DIN EN ISO 9001 and VDA 6.4.,
Artison will procure the printing plant from CEFLA, Italy. CEFLA Finishing group, part of CEFLA,
SA, is worldwide leader in the finishing of wood and other materials, designs and manufactures
turnkey painting and wrapping lines.
Plant Make and Capacity
Sl No.
Particulars
Fiber
Capacity
Price-Q
by 1
120,000 m3
USD 16 MM
High Density Fiber Plant by 1
108,000 m3
USD 16 MM
150,000 m3
USD 1.0 MM
Board
Units
Plant
Dieffenbacher
2
Dieffenbacher
3.
Printing Plant by CEFLA
The machinery will be delivered within 12 months from the date of order. The installation will
take another 6 months. The plant will be commissioned within a period of 20 months from the
date of order. Dieffenbacher will provide full support for installation and commissioning.
Report
January, 2013
6.2.5 Raw Material Analysis

For manufacture of Fiber Board, bamboo poles are used. Also, one of the key ingredients is glue
which is used to bind the panels.
Availability of Bamboo Poles- The project is proposed to be located at Tripura which comes
under North-East part of India. As a region, North East produces almost 20% of the total bamboo
stock in India and has the highest percentage of growing stock in the country.
Availability of Bamboo- Region wise (India)
66
70
60
50
Area %
40
30
Growing stock %
28
20.3
20
20.2
12
10
9.9
8.7 7
7.4
2
5.5 3
0
North East
Madhya
Pradesh
Maharashtra
Orissa
Andhra
Pradesh
Karnataka
Others
Source: National Bamboo Mission, India
Types of Bamboo Poles required- As the production process is independent of the type of the
bamboo being used the quantity required for production every day will be easily achieved. There
will have to be sustained bamboo sapling plantation to keep up to the future requirement of the
raw material. The requirement of raw bamboo is in the tune of 450MT per day. Each Bamboo
weighs approx 30kgs and is 25 to 30 ft long. On an average a 10 Ton Truck takes in 1,500 bamboo
poles. Since the production process is independent of the type of the bamboo being used, the daily
quantity required for production will be easily achieved. The requirement of raw bamboo is in the
tune of 450MT per day. Each Bamboo weighs approx 30kgs and is 25 to 30 ft long. On an average
a 10 Ton Truck takes in 1,500 bamboo poles. Price varies with availability and also with grade.
The Company does not foresee any challenge in adequate supply of bamboo poles.
Report
January, 2013
Typically the main varieties available in NE are;

Local Name
Botanical Name
Muli
Melocanna Baccifera
Kaligada
Oxytenan Thera Nierscilita
Jai
Bambusa Tulda
Pecha
Dendrocalamus Himiltonil
Khane
Dendrocalamus
Makal
Bambusa Tulda
Kanak Kich
Dendrocalamus Strktus
Bamboo Poles suppliers- Typically, the saplings given by the Company to the Government and
the farmers will take 1 to 2 years to develop into Bamboo Culms. The Company plans to purchase
raw bamboo poles from PS Green Gold Industries, one of the leading and reliable suppliers of raw
bamboo poles in the region. The Company plans to develop a vendor management system
whereby the availability of bamboo poles will be taken care of. There is no incident of Bamboo
crop failure documented in North East.
Price of Bamboo Poles- One of the key challenges is to mitigate the impact of price rise in
Bamboo. Bamboo is a state subject and at times various state governments in India have hiked the
prices by 10-20% in a single year due to inflation-linked wages system. However, as the lead time
to procure is relatively less and the Company plans to keep the optimal stock, the price rise can be
passed on to the furniture division.
EO Glue- Majority of Board manufacturers in India makes their own glue at their factory and use
E2 because of the costing factor. E0 Glue is the expensive variety which Artison will be using as the
raw material. As the cost of main raw material, bamboo is lower compared to the wood. being a
100% EOU Artison will have to adhere to the international standards. Artison also propose to
make the glue on its own more so because of the main component Urea is available in Tripura
due to the Urea plant within the state. To start Artison will procure the Glue from ARCL, Kolkata.
Report
January, 2013
Manpower Requirements
Sl No
P&M
Manpower/Shift
Shifts
Total Manpower
Dieffenbacher
40
120
CEFLA
15
Total
135
6.2.6 Market Viability & Selling Strategy

The availability of good quality and cheaper bamboo boards can in fact unplug the latent demand
that exists in the industry and lead to overall growth in the market size for wood and wood
substitutes. Policies that encourage sustainable growth and use of bamboo would not only resolve
the problem of scarce wood resources but also create an industry worth millions.
The current market size of the different types of boards and plywood combined is estimated at
1,000 million USD. Of this, the plywood industry account for 800 million and that of the other
boards (MDF, particle, hard board) account for the rest 200 million. The cost economics of using
bamboo filling as against wood provides ample justification for the switchover from wood veneer
to bamboo based PB, MDF boards. The switchover can take place in at least 20% of the organized
medium-sized units currently engaged in plywood production and which have been shut down
because of non-availability of material. This implies a total production of 160 million USD which
can be expected in two years. Units in the unorganized sector can also be expected to switchover
because of the cost.
Boards manufactured using bamboo based OSBs can be used for applications like shuttering,
railway sleepers, truck bodies, packaging and outdoor application like fencing etc.
Please note at around 50% of the production of boards will be consumed in-house for
manufacture of flat package Furniture.
Report
January, 2013
6. 3. Manufacture of Flat Package Furniture
Market survey and test marketing of products have revealed that the highest value of Bamboo
based PB and MDF can be achieved through conversion of these into finished products ready for
use like Flat Package Furniture. The project envisages setting up three units in strategic locations
having all International Quality Automated facilities for conversion of Bamboo based PB, MDF &
HDF into more value added products like-Panel doors, Window Shutters, Flat Packaged Furniture,
Floor tiles, Low Cost Housing, etc. The units are planned to be set up in Tripura alongside the main
board plant to cater to Export and partially to the domestic market segment. The project aims to
convert about 100% of its MDF/PB production into pre-finished products in the Flat Furniture
Plant. This would enable the company to add more than 50% value on its overall Board
production.
Flat Package Furniture- Flat pack furniture, is a form of furniture that is purchased in multiple
pieces and requires assembly. This form of furniture generally arrives in a box and contains
instructions for the buyer to follow in order to assemble it after purchase.
The Company plans to manufacture flat package furniture panels to start with. Gradually, the
Company will also manufacture panel doors, window shutters, floor tiles etc by further processing
the flat package panels.
6.3.1 Products Planned

As mentioned earlier, the Company has planned a bouquet of products. These are;
Panel doors
Window Shutters,
Flat Packaged Furniture,
Floor tiles,
Low Cost Housing
The Company will manufacture both, high value and low value furniture products. It has planned for
four units in the same complex i.e., two for each kind.
Report
January, 2013
6.3.2 Manufacturing Process

The manufacture of flat package furniture starts with receiving bamboo sections in the furniture
division. The preparation of sections was discussed in the Main Board/HDF segment. The process
can be depicted in the diagram below;
Flat Package Furniture Manufacturing Process - By IMA,
Board Storage
Curvilinear Cutting Routing

and edge drilling/banding
Straight Cutting
Edge Banding
Edge Banding
Panel Sizing
Multi Boring
Packing/Assembly/Dispatch
Flat Package Furniture Manufacturing Process- By IMA, Identification of Modules
Board Storage
IMA BIMA400V
Schelling Fh6 Saw
Advantage 320
Novimat Contour
Manual Panel Saw
Hortsmann CNC
Drilling
Packing/Assembly/Dispatch
Report
January, 2013
6.3.3 Plant & Machinery- Flat Furniture Package Manufacturing

After careful evaluation of leading plant & machinery manufacturers from all over the world, the
Company has selected following vendors for supply of Plant for manufacture of flat package
furniture;
i)
HOMAG Group AG (for the low end value added products) - The Company will
purchase the machinery for low end furniture from HOMAG. It is one of the worlds leading
manufacturers of machines and equipment for the woodworking industry. As a global player,
HOMAG is present in more than 100 countries and holds an estimated 28 percent share of the
market.
In the fields of furniture manufacturing, structural elements and timber frame house construction,
HOMAG offer its customers perfectly aligned solutions, from the stand-alone machine through to
complete production lines. A wide range of supporting services and specially tailored control are
also provided. Artison will purchase following lines of Machineries from HOMAG.
Sl No.
Particulars
Units
Capacity
Price-Q
Large Line
15000 m3
Euro 1.98 MM
Small Line
15000 m3
Euro 0.25 MM
Time Duration- As per the quotation received, HOMAG will take around 4 months to deliver both
the lines. Installation & commissioning will take another 6 months. After the trail run, the
production will start within 8 months from the delivery time. HOMAG will provide full technical
support for the installation and trial runs.
ii)
IMA Group, Germany- IMA group is also one of the renowned manufacturers in the world
for furniture manufacturing plants. Artison will purchase machinery for manufacturing of high
value add furniture products from IMA. The details are as follows;
Sl No.
Particulars
Units
Capacity/UNIT
Price-Q
PRFU-12000 LU
25000 m3
Euro 3.02 MM
Report
January, 2013
Time Duration- IMA will provide full technical support for installation and training of the
personnel on operations of the machines. The machines will be delivered within 5 months of
placing the order and installation will complete within next two months of delivery. The
commercial production will start in further two months.
6.3.4 Key Raw Material Analysis

The key raw materials for furniture plant will be MDF/PB boards, HDF boards and chemicals &
adhesives. The Company will start manufacturing MDF/PB boards and HDF boards in 24 months.
However, the furniture plant will get ready in 8-9 months. Till the time bamboo board plant is
commissioned, the company will use bagasse based boards. The vendor for bagasse based board is
already finalized. The Company will source bagasse boards from Bajaj Eco Tech, which is the
largest manufacturer of bagasse based ply-board and MDF boards in India. Bajaj Eco has north
east division with warehouses in Guwahati, Assam, India which is in close proximity to the
proposed site.
The MDF product from Bagasse is considered eco-friendly material, as it is produced from the
cellulose of raw material rather than cutting trees. It is also a competitive option for manufacture
of HDF and MDF boards.
Also Bagasse as a fuel in sugar mill is not a clean fuel and causes pollution, using natural gas
instead of Bagasse as a fuel in sugar mill helps in decreasing the emission of CO2. Therefore the
sugar mills prefer selling bagasse to specialized companies for value addition.
Over the years, the price of these boards has been rising at an average rate of 5% as enquired from
industry sources. The Company does not foresee any price pressure in the raw materials during
the time of sourcing.
In addition, the Company will purchase coatings and paints which are used extensively in
furniture board. These include foil (paper with a wood effect pattern), melamine, veneer (very
thin strips of wood joined together) and high gloss (glossy plastic look finish giving a high shine).
Lacquer is also needed to improve the appearance. These chemicals and paints were subjected to
price fluctuations in the past. However the company proposed to pass the price increase to the
final consumers as the production lead time is less. Most of these Chemicals are hazardous and
require special handling. The plant of the Company will be semiautomatic with minimal manual
intervention.
Report
January, 2013
Manpower Requirements & availability for Furniture Plant- The manpower requirements can
be summarized as follows;
Sl No
P&M
Manpower/Shift
Shifts
Total Manpower
HOMAG
20
60
IMA
20
60
Total
120
As stated earlier, the Company plans to provide adequate training to the workforce. The Company
has a ready source of manpower in the State as the level of education and literacy is higher. These
machines require minimal human intervention making it easier to operate.
6.3.5 Market Viability & Selling Strategy
Brief Market Analysis

Flat Furniture- Bamboo can substitute wood for making furniture. The consumption of wood
other than plywood for making furniture was estimated at 2.25 million cubic meters in 1998. Use
of bamboo as a substitute for wood to make furniture could be to the extent of at least 5%,
yielding a market of 100 million USD. Bamboo penetration in the furniture sector is around 40%,
this market can increase to nearly 650 million USD by the year 2015.
Bamboo Flooring- Bamboo flooring and bamboo board are newly developed interior designing
materials which are made using modern scientific methods from superior quality bamboo.
Bamboo flooring is an attractive alternative to wood or laminate flooring. A market opportunity of
a minimum 20 million USD can be realized in the export market. The size of the domestic
organized flooring market has been estimated at 300 million USD for all types of premium
flooring. Architects have been opined that since supply creates its own demand, it would be
possible for bamboo board flooring to capture 5-6% of the market. This will result in a domestic
market size of 20 million USD to begin with. The growth of the industry is likely to be phenomenal
both in the international as well as Indian markets because of the ease of maintenance and ease of
Report
January, 2013
use of the product. A market size of 400 million USD is expected by the end of 2015. Bamboo
flooring unit is also planned to be set up along with the furniture plant.
Bamboo based door, windows and pre-fabricated housing- Bamboo based HDF is planned to
be used for developing Pre Fabricated low cost housing for remote locations. The pre fabricated
houses can be installed with minimum labor in remote locations. The design will take care of
natural disasters such as flood, earthquake and others. These houses plan to have solar
installations in the roof which will provide electricity. These can be ideal for remote school, village
centers etc. Anganbari Govt. of India initiative can use these low cost housing for setting up
centers in remote locations in India.
Target Market Size ( Based on imports)
30,000
19,285
20,000
10,233
10,000
6,943
5,955
429
GERMANY
FRANCE
UK
USA
INDIA
Source: Market Research
The annual market opportunity for value-added bamboo products has been estimated at
approximately US $ 1,000 million. This is in addition to the usage of US $ 400 million that already
exists. There is scope to increase the size of the industry by at least 2.2 times to begin with. Over
the next 2 years and with the acceptance of bamboo as an industrial and commercial product, the
projected rate of growth could be as high as 20% per year, particularly when bamboo is seen as a
viable replacement for wood as a reinforcement material. The bamboo industry in India can grow
to an outstanding 5,000 million USD by the year 2015. Consistent supply of processed bamboo is
the key to the growth and development of this industry.
Bamboo as a wood substitute offers an immediate market opportunity of 400 million USD. The
inclination towards use of Bamboo versus wood is reflected below:
Report
January, 2013
Industry
Present
use
Wood
of Potential
Replacing
of Industry Perception
with of Use of Bamboo
Bamboo
Plywood
Extensive
Very Good
Favorable
Construction
Extensive
Very Good
Favorable
Packaging
Extensive
Average
Moderate
Railways
Moderate
Average
Favorable
Truck Bodies
Moderate
Very Good
Favorable
Flooring
Extensive
Very Good
Favorable
Pulp & Paper
Extensive
Very Good
Favorable
Furniture
Extensive
Very Good
Favorable
The market for the wood industry already exists. Bamboo board based flat furniture and flooring
board can therefore make an easy entry through the OEM channel in both international and
domestic market. An awareness of the superiority and versatility of bamboo has to be
communicated to interior designers, world traders and architects.
Market Target & Positioning
Product
Target
Positioning
Flat Furniture
High Income Group Drawing
Exclusive / Novel
High Aesthetic Value
Senior Executive Offices.
Highly Durable
Hotel / Resort Lobbies.
Green
Room.
Exclusive Areas like Club,

Market
through
Product
(Environment Friendly)
OEM
Channel in
International and Domestic
Markets
Door
Frames,
Shuttering
Window Quality Conscious MIG and HIG

Houses.
Provides
Value
money
Report
for
January, 2013
Green Product
Assured
Supply
in
future
Low Cost Housing
Village Homes
Thermal,
Sound
insulated,
Maintenance free, Durable
Perception of End Consumer- Bamboo Based Furniture

Person
Prospective Buyers % of respondents

Would
Would
Buy
buy
People staying in Metros / Major 15
Probably Undecided probably

wont buy
47
38
cities
People
staying
in
Industrial 10
52
38
High Income Person
33
58
Middle Income Person
10
58
26
Modern Office Builder
16
66
18
Conservative Builder
20
61
12
Government Builder
11
68
13
Cost Conscious
10
80
Enviornmental Conscious
28
72
Aesthetic Conscious
57
43
Performance Conscious
42
58
Towns
Target Market Segment Strategy
Sales would be the major thrust area for the organization. The Government sales will be one of the
major focuses of the organization as the furniture and other products are Eco Friendly and
Green. Worldwide various Governments are taking initiatives to buy eco friendly products to
help create a better environment. The primary product mix will be flat furniture for home and
office. In future Bamboo based boards can be used in other products such as shuttering, door &
Report
January, 2013
window frames, door & window shutters in the construction sector, in railway sleepers and
coaches and in truck bodybuilding.
Key Highlights of Market Strategy
OEM Network will be developed in the target countries.
Export Market - Due to the high demand of organic and natural substances across the globe
organizations like Habitat, The Body Shop, Oxfam and Gap have been in the past few years big
bulk buyers of such organic products. These multi nationals shall be targeted for export of
finished products like knocked down flat furniture, floorings etc. made out of Bamboo based
boards.
The Company has been in regular touch with large OEMs such as IKEA, HOME DEPOT, B&Q,
Zurbruggen, Lutz, Steinbach, Seegmuller. These OEMs are keen to have strategic relationship
with Artison. Artison can adapt to the Ethnic Taste Design of the High and Mid Market needs.
Also, the product offered is 100% GREEN.
Worldwide Market for Flat Furniture is 347Billion USD, the high income countries constitute
52% and the mid / low income 48%.
Main exporters- The organization will compete with China (exports 25,221 Million USD) and
Malaysia (2,155 Million USD).
Product Promotion Strategies
Seminars and meets with Architects, influencers, consumers as well as Trade shows organized
at national and international level will enable the organization to display and therefore create
awareness.
Creation of Brand Ambassador and aggressive advertisement.
The Display Centers in association with the OEMs at major cities worldwide, will act as a prime
tool for creation of awareness and interest amongst the masses.
Launching a well made internet website with product details, codes, pricing and order/query
forms would also promote the organization.
Target high & mid market furniture where value addition and margin is more,
Work with retail chains on long term contract ( 2 yrs +) in the target market.
Report
January, 2013
Make products as per the design of the OEMs reducing the design cost & adapting to recent
trends of the market.
China / Malaysia are perceived as mid - low end furniture makers which will work for the
Companys advantage as it plan to target high mid furniture market (with European
machines using green / eco-friendly material).
Trends in Hardboard Furniture Prices
Hardwood prices are the direct determinant of Furniture prices world-wide. The Companies
determine the furniture prices based on key raw material, i.e., hardwood, extent of value addition,
chemicals and adhesive use and design. Beyond low end segment, in the furniture industry prices
are not key determinants of the buying decision of consumers.
Hardwood Prices (2002-2012)- Hard Logs, Best quality Malaysian meranti, import price
Japan
Price per Cubic Meter in USD

500
400
300
353.03
200
183.37
100
Source: www.indexmundi.com
Report
Dec/12
Jul/12
Feb/12
Sep/11
Apr/11
Nov/10
Jun/10
Jan/10
Aug/09
Mar/09
Oct/08
May/08
Dec/07
Jul/07
Feb/07
Sep/06
Apr/06
Nov/05
Jun/05
Jan/05
Aug/04
Mar/04
Oct/03
May/03
Dec/02
January, 2013
SECTION
7:
Financial Analysis
Report
January, 2013
7.
Financial Analysis of the Project
The project will entail an expenditure of USD 121.35 MM over a period of 24 months. The project
financials indicate healthy return ratios on conservative assumptions. The project will start
yielding revenues from 8th month onwards once the furniture plant is operational.
7.1
Project Sources and Usage Analysis
The total project cost is around USD 121.35 MM.
Major component is Plant & Machinery
contributing around 35.4% followed by specialized building and structures at 28.1%. IDC
constitute around 5%. The analysis of the project components is given below;
Project Cost Components Analysis
The project cost components are taken without apportionment of IDC as IDC has been separately
shown. While preparing the Balance Sheet, IDC has been apportioned over different heads.
Report
January, 2013
7.1.1 Land
The Land is provided by Tripura Government on long term lease. The Company will have to spend
on development of land. The total amount towards development of land is envisaged at around
USD 2.24 MM. In addition to 40 acres for the plant site, the Company has been granted another 40
acres for plantation. The bifurcation of the amount is as follows;
Particulars
Nurseries
&
Lab
Main
Board HDF
UNIT
Land Area in 40.00
UNIT
Furniture
Total Budget
Plant
20.00
15.00
5.00
80.00
1.00
0.75
0.25
2.24
Acres
Cost- USD MM
0.24
The Company will spend this amount towards site leveling, site grading, fencing etc.
7.1.2 BuildingsThe Company plans to spend around USD 34.08 MM on creation of buildings and support
structure for plant & machinery. Following activities are planned under this head.
1. Buildings
2. Interior decoration
3. Furnishing
4. Cost of Land for urban Properties.
5. Civil Construction
Buildings
Nurseries &
Lab
MB UNIT
HDF UNIT
Furniture
Total
Plant
Covered Area in m2
Cost
800.00
0.08
100,000
20.00
50,000
20,000
170,800
10.00
4.00
34.08
The per square meter cost is assumed to USD 200 which seems reasonable considering the
location of the factory buildings and associated cost in the region.
Report
January, 2013
7.1.3 Plant & Machinery

The Company has already received quotation for complete plant & machinery. The main plants for
Furniture, HDF/MDF/PB and finishing line will be imported from HOMAG, IMA, DIFFENBACHER &
CEFLA, respectively. In addition, the Company will also purchase lab equipments for nursery.
Break up for IMA, HOMAG, DIFFENBACHER & CEFLA
Stream
Nursery
HDF
Main Board
Furniture
Make
Miscellaneous
Dieffenbacher
Dieffenbacher
HOMAG
&
Finishing
Spares
CEFLA
Misc
IMA
Units
Multiple
2/2
Multiple
Price
USD 16 MM
USD 16 MM
2 Units- USD
USD 1 MM
USD
per
2.2 MM each
Unit
2 Units- USD
1.5
MM
2.4 MM each
Printing
Line- USD 0.8
MM
Total
USD 1.0
USD 16 MM
USD 16 MM
USD 10.0 MM
USD 1 MM
USD
1.5
MM
Tissue Culture Lab Break up- Total USD 1 MM

Price INR
Price- USD
Tissue Lab Equipments
INR 35 MM
USD 0.64 MM
Tissue Lab Enhancements
INR 20 MM
USD 0.36 MM
7.1.4 Miscellaneous Fixed Assets:

The Company will purchase such assets as necessary to provide support to the main plants
assembly. It includes office appliances, vehicles & communication system. The division wise break
up is as follows;
Misc Assets
Cost-
USD
Nurseries &
0.10
Lab
MB
HDF
2.00
2.00
Furniture
1.90
Total
6.00
MM
Report
January, 2013
Details:
INR MM
Conveyor Belt
40
Fork Lift ( Diesel and Battery)
12
Generator 2x1 MW
20
Solar Panel
40
Gas based Boiler
Gas Based Co-Gen Unit
35
Computer (Desktop/Server/Printer)
10
Software (Customized)
50
Communication System
Truck x 8
10
SUVs x 3
4.5
Motorcycle and Cycles
0.5
Agartala Office ( Head Office / Tissue Culture Lab)
Computer, Printer, Server, Communication Equipment 15
& Software
Vehicles
Kolkata Office (Liaison)/Furniture Show Room (Rented)
3.5
0
Computer, Printer, Server,Comm Equipments & 5
Software
Vehicles
2.5
Guest House
12.5
Total- INR MM
270.5
Others
59.5
Total
330
Total- USD MM @ INR 55
6.00
Report
January, 2013
7.1.5 Working Capital Funds

The Working capital requirement is detailed out as below;
Working Capital
USD MM
Debtors
Month
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Nurseries
0.2
0.2
0.2
0.2
0.2
0.2
0.2
Main Board
1.5
4.2
4.2
4.2
4.2
4.2
HDF
1.5
11.9
11.9
11.9
11.9
11.9
Furniture
1.5
12.8
12.8
12.8
12.8
12.8
12.8
12.8
13.0
13.0
29.1
29.1
29.1
29.1
29.1
Total
Y Year 7
Stock
Month
Nurseries
0.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Main Board
0.5
0.8
0.8
0.8
0.8
0.8
HDF
0.5
2.3
2.3
2.3
2.3
2.3
Furniture
0.5
2.9
2.9
2.9
2.9
2.9
2.9
2.9
2.9
2.9
6.1
6.1
6.1
6.1
6.1
Nurseries
% of P&M
Cost
-
Main Board
10%
1.6
1.6
1.6
1.6
1.6
HDF
10%
1.6
1.6
1.6
1.6
1.6
Furniture
10%
0.5
1.0
1.0
1.0
1.0
1.0
1.0
Total
Maintenance Stock
Total
0.5
1.0
4.2
4.2
4.2
4.2
4.2
Nurseries
% of P&M
Costs
0%
Main Board
12%
1.92
1.92
1.92
1.92
1.92
HDF
12%
1.92
1.92
1.92
1.92
1.92
Furniture
12%
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
1.20
5.04
5.04
5.04
5.04
5.04
17.60
18.13
44.39
44.39
44.39
44.39
44.39
Spares
Total
Total of
Assets
Creditors
Material
Nurseries
Current
for
Months
0.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Main Board
0.5
0.8
0.8
0.8
0.8
0.8
HDF
0.5
2.3
2.3
2.3
2.3
2.3
Furniture
0.5
2.9
2.9
2.9
2.9
2.9
2.9
2.9
2.9
2.9
6.1
6.1
6.1
6.1
6.1
Total
Creditor
Expenses
Nurseries
for
Month
1
0.04
0.07
0.07
0.07
0.07
0.07
0.07
MAIN BOARD
0.35
0.35
0.35
0.35
0.35
HDF
1.36
1.36
1.36
1.36
1.36
Furniture
1.14
1.14
1.14
1.14
1.14
1.14
1.14
Total
1.18
1.21
2.91
2.91
2.91
2.91
2.91
NWC
13.51
14.01
35.42
35.42
35.42
35.42
35.42
Report
January, 2013
7.1.6 Securities & Deposits

The company has put aside a sum of USD 0.25 Million for deposits with Government which it has
to pay for availing some of the facilities. The deposits are to be paid for Electricity, Telephone,
Municipality, etc. This comes to 0.18% of the cost of the project. The company will submit the
documents as they are available.
7.1.7 Pre operative Expenses

The Company has planned to spend around USD 11 MM on pre-operative expenses. The preoperative expenses will be incurred on the following;
i)
Share Acquisition- The Hong Kong entity will purchase shares of Indian entity. The amount
is yet to be decided;
ii)
Market Development Expenses;
iii)
Initial Plantation Establishment & Maintenance costs;
iv)
Administrative Expenses during project implementation period.
Division-wise break up is as follows;

Nur & Labs
Pre-Ops
0.10
FB UNIT
HDF UNIT
2.00
3.50
Furn.
5.40
Total- USD MM
11
Going forward, the Company needs to provide details of major expenses and amount to be spent
towards each of these heads. The pre-operative expenses are around 8% of the project cost which
is slightly on the higher side.
7.1.8 Contingency
The Company has considered contingency reserve fund of USD 10 MM towards meeting cost
escalation during the construction phase. Normally, for projects of similar size, 5% percent to
7.5% is kept as contingency.
Report
January, 2013
7.1.9 Interest during Construction

7.1.9.1 Nurseries
Project cost
Implementation schedule
Debt %
Equity %
Rate of Interest
1.77
6
70%
30%
11.00%
USD MM
Months
Interest to be charged to P&L Account

Quarterly Installment
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
Phased Expenditure(%)
50%
50%
0%
0%
0%
0%
0%
0%
Phased Expenditure
0.88
0.88
0.00
0.00
0.00
0.00
0.00
0.00
Upfront Payment
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Equity
0.27
0.27
0.00
0.00
0.00
0.00
0.00
0.00
Debt
0.62
0.62
0.00
0.00
0.00
0.00
0.00
0.00
Equity
0.00
0.27
0.55
0.55
0.55
0.55
0.55
0.55
Debt
Fund
from
Requirement
arranged
Opening Balance
0.00
0.63
1.27
1.27
1.27
1.27
1.27
1.27
Total Equity
0.27
0.54
0.55
0.55
0.55
0.55
0.55
0.55
Total Debt
0.62
1.25
1.27
1.27
1.27
1.27
1.27
1.27
IDC
0.02
0.03
0.00
0.00
0.00
0.00
0.00
0.00
Equity
0.005
0.01
0.00
0.00
0.00
0.00
0.00
0.00
Debt
0.012
0.02
0.00
0.00
0.00
0.00
0.00
0.00
Equity
0.27
0.55
0.55
0.55
0.55
0.55
0.55
0.55
Debt
0.63
1.27
1.27
1.27
1.27
1.27
1.27
1.27
2.33
2.33
0.00
0.00
0.00
0.00
0.00
0.00
Equity
0.27
0.28
0.00
0.00
0.00
0.00
0.00
0.00
Debt
0.63
0.64
0.00
0.00
0.00
0.00
0.00
0.00
0.035
0.035
0.035
0.035
0.035
0.035
Arrangement of Interest
Upfront payment from
&
Closing Balance of
Debt : Equity Ratio
Net Requirement of Fund
IDC/Interest
0.05
7.1.9.2 MAIN BOARD

Project cost
Debt %
Equity %
Rate of Interest
47.72
24
70%
30%
11%
USD MM
months
Int to Pnl
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
8%
9%
15%
Phased Expenditure
3.82
4.30
7.16
17%
26%
25%
0%
0%
8.11
12.41
11.93
0.00
Upfront Payment
0.00
0.00
Fund
Requirement
arranged from
Equity
1.15
1.29
2.15
2.43
3.72
3.58
0.00
0.00
Debt
2.67
3.01
5.01
5.68
8.69
8.35
0.00
0.00
Opening Balance
Equity
0.00
1.17
2.50
4.74
7.31
11.25
15.11
15.11
Debt
0.00
2.72
5.84
11.06
17.06
26.24
35.26
35.26
Report
January, 2013
Total Equity
1.15
2.46
4.65
7.17
11.03
14.83
15.11
15.11
Total Debt
2.67
5.73
10.85
16.74
25.75
34.60
35.26
35.26
IDC
0.07
0.16
0.30
0.46
0.71
0.95
0.00
0.00
Arrangement of Interest &

Upfront payment from
Equity
0.02
0.05
0.09
0.14
0.21
0.29
0.00
0.00
Debt
0.05
0.11
0.21
0.32
0.50
0.67
0.00
0.00
Closing Balance of
Equity
1.17
2.50
4.74
7.31
11.25
15.11
15.11
15.11
Debt
2.72
5.84
11.06
17.06
26.24
35.26
35.26
35.26
Debt : Equity Ratio

Net Requirement of Fund
IDC/Int to PNL
2.33
2.33
2.33
2.33
2.33
2.33
0.00
0.00
Equity
1.17
1.34
2.24
2.57
3.93
3.86
0.00
0.00
Debt
2.72
3.12
5.22
6.00
9.18
9.02
0.00
0.00
2.65
0.97
0.97
7.1.9.3 HDF
Project cost
Debt %
Equity %
Rate of Interest
39.49
24
70%
30%
11%
USD MM
months
Int to Pnl
Q1
Q2
8%
Phased Expenditure
3.16
Upfront Payment
Q3
Q4
Q5
Q6
Q7
Q8
9%
12%
19%
25%
27%
0%
0%
3.55
4.74
7.50
9.87
10.66
0.00
0.00
0.00
0.00
1.42
2.25
2.96
3.20
0.00
0.00
0.00
Fund
Requirement
arranged from
Equity
0.95
1.07
Debt
2.21
2.49
3.32
5.25
6.91
7.46
0.00
0.00
Opening Balance
Equity
0.00
0.97
2.07
3.56
5.92
9.06
12.49
12.49
Debt
0.00
2.25
4.83
8.31
13.82
21.13
29.14
29.14
Total Equity
0.95
2.03
3.49
5.81
8.88
12.25
12.49
12.49
Total Debt
2.21
4.74
8.15
13.56
20.73
28.59
29.14
29.14
IDC
Arrangement
of
Interest & Upfront
payment from
Closing Balance of
0.06
0.13
0.22
0.37
0.57
0.79
0.00
0.00
Equity
0.02
0.04
0.07
0.11
0.17
0.24
0.00
0.00
Debt
0.04
0.09
0.16
0.26
0.40
0.55
0.00
0.00
Equity
0.97
2.07
3.56
5.92
9.06
12.49
12.49
12.49
Debt
2.25
4.83
8.31
13.82
21.13
29.14
29.14
29.14
2.33
2.33
2.33
2.33
2.33
2.33
0.00
0.00
Equity
0.97
1.11
1.49
2.36
3.13
3.43
0.00
0.00
Debt
2.25
2.58
3.47
5.51
7.31
8.01
0.00
0.00
0.80
0.80
Debt : Equity Ratio

Net Requirement
Fund
IDC/Int to PNL
of
2.14
7.1.9.4 Furniture
Project cost
Debt %
26.44
9
70%
months
Report
January, 2013
Equity %
Rate of Interest
30%
11%
Q1
Q2
Q3
Q4
Q5
Q6
Q7
Q8
30%
50%
20%
0%
0%
0%
0%
0%
Phased Expenditure
7.93
13.22
5.29
0.00
0.00
0.00
0.00
0.00
Upfront Payment
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Fund
Requirement
arranged from
Equity
2.38
3.97
1.59
0.00
0.00
0.00
0.00
0.00
Debt
5.55
9.26
3.70
0.00
0.00
0.00
0.00
0.00
Opening Balance
Equity
0.00
2.43
6.52
8.26
8.26
8.26
8.26
8.26
Debt
0.00
5.66
15.20
19.27
19.27
19.27
19.27
19.27
Total Equity
2.38
6.39
8.10
8.26
8.26
8.26
8.26
8.26
Total Debt
5.55
14.92
18.90
19.27
19.27
19.27
19.27
19.27
IDC
0.15
0.41
0.52
Arrangement of Interest
& Upfront payment from
Equity
0.05
0.12
0.16
Debt
0.11
0.29
0.36
Closing Balance of
Equity
2.43
6.52
8.26
8.26
8.26
8.26
8.26
8.26
Debt
5.66
15.20
19.27
19.27
19.27
19.27
19.27
19.27
2.33
2.33
2.33
2.33
2.33
2.33
2.33
2.33
Equity
2.43
4.09
1.74
Debt
5.66
9.54
4.07
0
0.53
0.53
0.53
0.53
Debt : Equity Ratio

Net Requirement
Fund
of
IDC/Interest to Pnl
1.08
0.53
7.1.10 Apportionment of IDC

Apportionment of IDC
Year 1
Year 2
For Depreciation & Balance

Sheet
Addition
Apportionment
Revised
Year 2
Apportionment
Revised
Land
Building
Plant & Machineries
Furnitures & Fixures
Vehicles
Softwares
&
Comm
Systems
IDC
Total
2.24
24.08
28.41
0.65
0.19
0.75
%
4.0%
42.8%
50.4%
1.2%
0.3%
1.3%
2.36
25.33
29.88
0.69
0.20
0.78
0.00
10.00
17.41
0.65
0.19
0.75
0%
34%
60%
2%
1%
3%
11.04
19.22
0.72
0.21
0.82
2.91
56.32
0.0%
100.0%
59.23
3.02
29.00
0%
1.00
32.02
Report
January, 2013
7.1.11 Means of Finance

The project will be funded by equity from Promoters & Loan from Bank. The details of financing
are givens below. The debt/ equity ratio for this project will be 2.26:1. The promoters are well
funded as evident from the net-worth of key promoter, Mr. Debopam Mukherjee.
Means of Finance
Details
In $ Million
Contribution
Term Loans From Banks
84.95
70%
Promoters Equity & Reserves
36.41
30%
Total Project Cost
121.35
Debt to Equity Ratio
2.33 times
7.2
Loan Disbursement & Repayment Schedule.
The Company plans to take a loan of USD 84.95 MM. The disbursement is proposed to be spread in
18 months. The Company plans to repay the loan in total six years with initial moratorium of 1.5
years. The Company has considered an interest rate of 11% p.a. with quarterly repayment for the
loan. The loan repayment schedule along with interest is reproduced below;
Year
Qtr-1
USD MM
Outstanding loan at the Beginning
51.4
75.5
56.6
37.8
18.9
Addition/Repayment
11.27
16.5
-4.7
-4.7
-4.7
-4.7
Outstanding at the end
11.27
67.92
70.79
51.91
33.04
14.16
Interest
0.00
0.56
2.08
1.56
1.04
0.52
Outstanding loan- Beginning
11.27
67.9
70.8
51.9
33.0
14.2
Addition/Payment
15.88
17.0
-4.7
-4.7
-4.7
-4.7
At the end
27.15
84.95
66.07
47.19
28.32
9.44
Interest
0.00
0.56
1.95
1.43
0.91
0.39
27.15
84.9
66.1
47.2
28.3
9.4
Qtr-2
Qtr-3
Report
January, 2013
Addition/Repayment
quarter
during
the
12.76
-4.7
-4.7
-4.7
-4.7
-4.7
39.91
80.23
61.35
42.47
23.60
4.72
0.04
2.34
1.82
1.30
0.78
0.26
39.91
80.23
61.35
42.47
23.60
4.72
Additions/Repayment
11.51
-4.7
-4.7
-4.7
-4.7
-4.7
51.42
75.51
56.63
37.75
18.88
0.00
Interest
0.56
2.21
1.69
1.17
0.65
0.00
Total Interest- Charged to P&L for the

Year
Closing bal.
0.60
5.67
7.53
5.45
3.37
1.17
51.42
75.51
56.63
37.75
18.88
0.00
Interest
Qtr-4
7.2.1
Working Capital Loan

USD MM
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Net Working Capital
13.51
14.01
35.42
35.42
35.42
35.42
Promoters' Margin
3.38
3.50
8.86
8.86
8.86
8.86
Loan
10.13
10.50
26.57
26.57
26.57
26.57
0.56
1.13
2.04
2.92
2.92
2.92
Interest
7.3
11%
Revenue Analysis:
For Revenue Projection, selling price is based on the market price in the US and European market.
The Company has considered conservative pricing assumptions due to the project being
Greenfield.
7.3.1 Nurseries
The Nurseries can produce 6 Million saplings per annum at 100 percent capacity. In the first Year
the company is expected to start production by July. So it is expected to produce around 3 million
saplings in first year. From next year onwards, at 85% capacity utilization, the nurseries can
produce around 5.1 Million saplings per annum. The selling price of per sapling is estimated to be
around $ 0.25 per sapling.
Revenue Projections: Sale of Saplings
Report
January, 2013
Nurseries
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
50%
85%
85%
85%
85%
85%
5.1
5.1
5.1
5.1
5.1
Rate per saplings in USD
0.25
0.25
0.25
0.25
0.25
0.25
0.25
Revenues (in $ MM)
1.5
0.75
1.28
1.28
1.28
1.28
1.28
Capacity Utilization
Annual Sale of Bamboo
100%
Saplings in Million
7.3.2 Main Board Plant

The plant will be ready by March, 2015 as it will take around 24 months from the date of order.
The Company has assumed capacity of 80% from first year onwards. The rate of board per cube
meter is expected to be around $350.
Revenue Projections: MAIN BOARD Board
MAIN BOARD
Year 3
Year 4
Year 5
Year 6
Year 7
100%
80%
80%
80%
80%
80%
Annual Sale of MAIN BOARD Board
120,000
96,000
96,000
96,000
96,000
96,000
Rate per M3 in USD
350
350
350
350
350
350
Revenues (In $ Million)
42
33.6
33.6
33.6
33.6
33.6
in M3
7.3.3 HDF
The plant, as with MAIN BOARD, will be ready by March, 2015 as it will take around 24 months
from the date of order. The Company has assumed capacity of 80% from first year onwards. The
rate of HDF per cube meter is expected to be around USD 1100.
Revenue Projections: HDF Board
HDF
FY 16
FY 17
FY 18
FY19
FY20
100%
80%
80%
80%
80%
80%
Annual Sale of DF Board in M3
108,000
86,400
86400
86400
86400
86,400
Rate per M3 in USD
1100
1100
1100
1100
1100
1100
Revenues (in $ Million)
118.8
95.04
95.04
95.04
95.04
95.04
Report
January, 2013
7.3.4 Furniture
The furniture plant is expected to start running at 20% capacity in the first year itself and at 80%
full capacity from the second year onwards. The rate of flat furniture per cube meter is taken to be
around $3200.
Furniture Plant
FY14
FY 15
FY 16
FY 17
FY 18
FY 19
FY 20
100%
20%
80%
80%
80%
80%
80%
80%
Annual Sale of flat pack.
40000
8000
32000
32000
32000
32000
32000
32000
Rate per M3 in USD
3200
3200
3200
3200
3200
3200
3200
3200
Revenues (in $ Million)
128
25.6
102.4
102.4
102.4
102.4
102.4
102.4
7.4
Raw Material Cost:
We have taken 8% wastage in raw material across the segments. As per the Company, the raw
material wastage will average out to be around 8%. The raw material costs are calculated as
follows for different segment.
7.4.1 Nurseries
At full capacity, 652,174 rhizomes/shoots/seeds required for the culture of 6 Million bamboo
saplings. Per unit cost of Bamboo Rhizomes is $ 0.600. While processing, the raw materials
wastages has been considered at around 8%, At various levels of capacity utilization the cost of
rhizomes/seeds are as follows;
Raw Material Cost: Nurseries
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
100%
20%
85%
85%
85%
85%
85%
652,174
130,435
554,348
554,348
554,348
554,348
554,348
Cost per unit
0.600
0.600
0.600
0.600
0.600
0.600
0.600
Total cost (in Millions)
0.391
0.078
0.333
0.333
0.333
0.333
0.333
Chemicals (unit-pieces)
652,174
130,435
554,348
554,348
554,348
554,348
554,348
Cost per Unit
0.04
0.04
0.04
0.04
0.04
0.04
0.04
Total Cost (in Millions)
0.0261
0.0052
0.0222
0.0222
0.0222
0.0222
0.0222
Rhizomes/ Shoots / Seeds

for Culture (unit - Pieces)
Report
January, 2013
7.4.2 Main Board

At full capacity utilization, the number of bamboo poles required for the production of Main Board
is 39.13 Million considering wastage of around 8%. The cost per Bamboo pole is USD 0.6.
Following are the raw material requirements at various level of capacity utilization.
Raw Material Cost: Main Board
MAIN BOARD
Year 3
Year 4
Year 5
Year 6
100%
80%
80%
80%
80%
Bamboo Poles (unit-Pieces in
39.13
31.30
31.30
31.30
31.30
cost per unit
0.6
0.6
0.6
0.6
0.6
23.48
18.78
18.78
18.78
18.78
Chemicals
39.13
31.30
31.30
31.30
31.30
Cost Per unit
0.04
0.04
0.04
0.04
0.04
1.56
1.25
1.25
1.25
1.25
Millions)
for
treatments
(unit-Pieces in Millions)
7.4.3 HDF
Primary Raw materials for HDF are bamboo poles and adhesive. The raw material cost has been
calculated taking into consideration the implementation schedule and current prices. Considering
the raw materials wastage of around 8%, the bamboo pole requirement is 0.13 Million with a per
unit cost of around USD 350.
Raw Material Prices: HDF
HDF
Year 3
Year 4
Year 5
Year 6
100%
80%
80%
80%
80%
130434.8
104347.8
104347.8
104347.8
104347.8
cost per unit
350
350
350
350
350
Total Cost (in Million)
45.65
36.52
36.52
36.52
36.52
Adhesives ( @ 90 kg / m3 -
11.74
9.39
9.39
9.39
9.39
Bamboo
Poles
(unit-
Pieces)
million unit Kg)
Report
January, 2013
Cost Per unit
23.48
18.78
18.78
18.78
18.78
7.4.4 Furniture Plant

The Company will use boards for manufacture of flat package furniture. Primary raw materials for
the modules are MDF/PB boards, coatings and other chemicals. After considering the wastage of
around 8 percent, the raw material prices have been calculated as under.
Raw Material Prices: Furniture Plant
Furniture Plant
100%
20%
80%
80%
80%
80%
80%
Raw Board Unit M3
47826.1
9565.2
38260.9
38260.9
38260.9
38260.9
38260.9
cost per unit
1100
1100
1100
1100
1100
1100
1100
52.61
10.52
42.09
42.09
42.09
42.09
42.09
Coatings / Paints - @ 60
kg / m3- unit Kg
Cost Per unit
2,869,565
573,913
2,295,652
2,295,652
2,295,652
2,295,652
2,295,652
12
12
12
12
12
12
12
34.4
6.9
27.5
27.5
27.5
27.5
27.5
7.5
Capex & Depreciation
Depreciation has been calculated taking the apportionment of IDC into consideration. While
accounting for depreciation in Income statement, the deferred income on account of capital
subsidies has been deducted in the ratio of depreciation as per AS-12.
PROJECTED DEPRECIATION ON GROSS BLOCK
PARTICULARS
Dep.
Amount in Million
USD
1
Opening Balance of Gross Block
2.240
2.240
2.240
2.240
2.240
Addition
2.240
Closing Balance
2.240
2.240
2.240
2.240
2.240
2.240
4.080
36.365
36.365
36.365
36.365
Addition
4.080
32.285
Closing Balance
4.080
36.365
36.365
36.365
36.365
36.365
0.034
0.710
1.924
3.139
4.353
Land: ( Depreciation Nil)
Building:
Depreciation at 3.34% p.a. SLM

Opening Balance
3.34%
Report
January, 2013
Add: for the year
0.034
0.675
1.215
1.215
1.215
1.215
Closing Balance of Depreciation
0.034
0.710
1.924
3.139
4.353
5.568
Net Block
4.046
35.656
34.44
33.226
32.012
30.79
WIP
21.245
11.721
47.287
47.287
47.287
47.287
Addition
11.721
35.566
Closing Balance
11.721
47.287
47.287
47.287
47.287
47.287
0.303
3.354
8.243
13.133
18.022
Add: for the year
0.303
3.051
4.889
4.889
4.889
4.889
Closing Balance
0.303
3.354
8.243
13.133
18.022
22.912
Net Block
11.418
43.933
39.044
34.154
29.265
24.375
WIP
18.157
Plant & Machinery:
Depreciation at 10.34% p.a. on

straight line method:
Opening Balance
10.34%
Furniture & Fixures

0.335
1.411
1.411
1.411
1.411
Addition
0.335
1.076
Closing Balance
0.335
1.411
1.411
1.411
1.411
1.411
0.005
0.061
0.150
0.239
0.329
Add: for the year
0.005
0.055
0.089
0.089
0.089
0.089
Closing Balance
0.005
0.061
0.150
0.239
0.329
0.418
Net Block
0.330
1.350
1.261
1.172
1.083
0.993
WIP
0.354
Depreciation on straight line

method:
Opening Balance
6.33%
Vehicles
0.098
0.412
0.412
0.412
0.412
Addition
0.098
0.314
Closing Balance
0.098
0.412
0.412
0.412
0.412
0.412
0.002
0.020
0.049
0.078
0.107
Add: for the year
0.002
0.018
0.029
0.029
0.029
0.029
Closing Balance
0.002
0.020
0.049
0.078
0.107
0.136
Net Block
0.096
0.392
0.363
0.334
0.305
0.275
WIP
0.103
Depreciation at on straight line

method:
Opening Balance
7.07%
Computers, softwares & Systems

0.381
1.607
1.607
1.607
1.607
Addition
0.381
1.226
Closing Balance
0.381
1.607
1.607
1.607
1.607
1.607
Report
January, 2013
Depreciation straight line
method:
Opening Balance
16.21%
-
0.015
0.177
0.437
0.698
0.958
Add: for the year
0.015
0.161
0.260
0.260
0.260
0.260
Closing Balance
0.015
0.177
0.437
0.698
0.958
1.219
Net Block
0.366
1.430
1.170
0.909
0.649
0.388
WIP
0.403
Total Depreciation for the year
0.360
3.961
6.483
6.483
6.483
6.483
Total Depreciation till this year
0.360
4.320
10.803
17.286
23.769
30.252
GROSS BLOCK
18.855
89.322
89.322
89.322
89.322
89.322
NET BLOCK
18.495
85.002
78.519
72.036
65.553
59.070
7.6
Capital Subsidy
Capital subsidy has been considered at 30% of the total of investment in Plant & Machinery. The
Capital subsidy is assumed to arise in Year 1 and Year 2. Deferred Income Account is created and
an amount proportionate to depreciation for the year is credited to Profit & Loss Account every
year. As the amount of capital subsidy is higher than INR 30 Crore ~ USD 5.5 MM, the Department
of Industrial Policy and Promotion will place it before the Union Cabinet for its consideration and
approval.
A
Government Subsidy
2014
2015
2016
2017
2018
2019
Investment in P&M
Phasing
29.88
35.57
Capital Subsidy
30%
8.96
10.67
Opening Balance of Capital
8.96
19.58
18.31
16.29
14.26
12.24
P&L
0.06
1.26
2.02
2.02
2.02
2.02
Closing Balance of Capital
8.91
18.31
16.29
14.26
12.24
10.22
0.303
3.051
4.889
4.889
4.889
4.889
Subsidy A/c
3
Apportionment
to
Account-Dep. Basis
5
Subsidy Account
B
Apportionment of Capital
Subsidy as Per Dep
Depreciation Charged to P&L

Account for P&M
Total Depreciation on P&M
47.287
47.287
47.287
47.287
47.287
47.287
% to be credited to P&L
0.64%
6.45%
10.34%
10.34%
10.34%
10.34%
Report
January, 2013
7.7
DSCR Calculation
The DSCR of the project is comfortable at 1.64.

Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Total
NET PROFIT AFTER TAX
1.81
5.75
28.06
29.77
31.42
34.05
130.86
DEPRECIATION &
1.40
4.90
6.66
6.66
6.66
5.56
31.84
1.16
6.81
9.57
8.37
6.30
4.09
36.29
4.37
17.45
44.28
44.80
44.38
43.70
198.99
9.44
18.88
18.88
18.88
18.88
84.95
1.16
6.81
9.57
8.37
6.30
4.09
36.29
INT. ON OTHERS
0.00
0.00
0.00
0.00
0.00
0.00
0.00
TOTAL SERVICE
1.16
16.25
28.44
27.25
25.17
22.97
121.24
III. D. S. C. RATIO
3.78
1.07
1.56
1.64
1.76
1.90
1.64
IV. AVG. DEBT SERVICE
1.6412865
I. COVER
AMORTIZATION
INT. ON TERM & Working
Capital LOANS
INT. ON OTHERS
TOTAL COVER
II. SERVICE
REPAYMENT OF L.T
LOANS - BANK
INT. ON TERM & Working
Capital LOANS
COVERAGE RATIO
1.64
7.8
Break Even Analysis

COMPUTATION OF BREAK EVEN POINT
(Amount in Million USD)
Particulars
Year 1
Year 2
Year 3
Year 4
Year 5
1. PROJECTED INCOME - ( PI )
26.350
103.888
233.156
234.114
234.114
2. VARIABLE COST - ( VC )
Year 6
234.11
4
-
75% of Operating Costs
21.51
84.97
181.69
181.69
181.69
181.69
Percentage To Projected Income
81.64%
81.79%
77.92%
77.61%
77.61%
78%
Report
January, 2013
3. CONTRIBUTION ( C ) ( PI - VC)
4.838
18.922
51.470
52.427
52.427
4. FIXED COST - ( FC )
52.427
-
Interest on Loan
1.157
6.807
9.566
8.373
6.297
4.090
Preoperative Expenses Written Off
1.100
2.200
2.200
2.200
2.200
1.100
Depreciation
0.302
2.698
4.459
4.459
4.459
4.459
Total Fixed Cost
2.559
11.705
16.225
15.032
12.956
12.956
9.71%
11.27%
6.96%
6.42%
5.53%
0.055
2.279
7.217
35.245
37.395
39.472
39.472
8.65%
6.95%
15.12%
15.97%
16.86%
16.9%
18.36%
18.21%
22.08%
22.39%
22.39%
22.4%
52.89%
61.86%
31.52%
28.67%
24.71%
24.7%
13.938
64.262
73.499
67.126
57.853
57.853
5. PROFIT BEFORE TAX ( PBT ) ( C

- FC)
5. PROFIT VOLUME RATIO -( PVR )
= (C / PI)
6. BREAK EVEN POINT- ( BEP ) = (
FC / C)
7. BREAK EVEN LEVEL OF SALES(BELS ) =(PR x BEP)
Report
January, 2013
7.9
Projected Profit & Loss Account- USD MM

DESCRIPTION
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
0.750
1.275
1.275
1.275
1.275
1.275
MAIN BOARD PLANT
33.600
33.600
33.600
33.600
HDF PLANT
95.040
95.040
95.040
95.040
FURNITURE PLANT
25.600
102.400
102.400
102.400
102.400
102.400
TOTAL REVENUE
26.35
103.68
232.32
232.32
232.32
232.32
0.213
0.841
1.799
1.799
1.799
103.888
233.156
234.114
234.114
234.114
Revenue
NURSERY
Other Income
TOTAL INCOME
26.350
EXPENDITURE
OPERATING COSTS ( DIRECT EXPENSES)
NURSERIES & LABORATORY

MAIN BOARD PLANT
HDF PLANT
0.465
0.791
0.791
0.791
0.791
0.791
24.181
24.181
24.181
24.181
71.583
71.583
71.583
71.583
FURNITURE PLANT
20.833
83.334
83.334
83.334
83.334
83.334
TOTAL OPERATING COST
21.299
84.125
179.888
179.888
179.888
179.888
NET OPERATING RESULTS (2-4)
5.05
19.76
53.27
54.23
54.23
54.23
INTEREST ON LOAN
0.600
5.672
7.527
5.451
3.374
1.168
Interest on Working capital Loan
0.557
1.135
2.039
2.922
2.922
2.922
PREOPERATIVE EXPENSES
1.100
2.200
2.200
2.200
2.200
1.100
Depreciation Less Capital Subsidy App.
0.302
2.698
4.459
4.459
4.459
4.459
Transportation Cost @ 1% of Expenses
0.213
0.841
1.799
1.799
1.799
1.799
TOTAL FIXED COST
2.772
12.546
18.024
16.831
14.754
11.448
PROFIT BEFORE TAX (PBT) ( 5-6)
2.279
7.217
35.245
37.395
39.472
42.778
Income Tax on Distributable Profit @ MAT
0.465
1.472
7.188
7.626
8.050
8.724
PROFIT AFTER TAX (PAT) ( 7-8 )
1.81
5.75
28.06
29.77
31.42
34.05
Proposed Dividend
5.000
5.000
10.000
10.000
CDT 17.8% of Proposed Dividend
0.890
0.890
1.780
1.780
RETAINED PROFIT ( 9 -10 )
1.814
5.746
22.167
23.879
19.642
22.274
EBITDA after 5% increase in Cost of
3.986
15.557
44.274
45.232
45.232
45.232
EBITDA after 5% decrease in Total Income
3.734
14.569
41.611
42.520
42.520
42.520
Margin
6.9%
5.5%
12.0%
12.7%
13.4%
14.5%
PROVISION FOR TAX
Operations
Report
January, 2013
7.10 Projected Balance Sheet

PARTICULARS
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Promoters' Contribution- in Equity
22.01
36.41
36.41
36.41
36.41
36.41
Reserve & Surplus
1.81
7.56
29.73
53.61
73.25
95.52
Deferred Income- Capital Subsidy- 30% of
8.91
18.31
16.29
14.26
12.24
10.22
32.73
62.28
82.42
104.28
121.89
142.14
Term Loan
51.42
75.51
56.63
37.75
18.88
0.00
SUB-TOTAL
51.42
75.51
56.63
37.75
18.88
0.00
Working Capital Loan
10.13
10.50
26.57
26.57
26.57
26.57
Sundry Creditors for Materials
2.91
2.92
6.06
6.06
6.06
6.06
Sundry Creditors for expenses
1.18
1.21
2.91
2.91
2.91
2.91
SUB-TOTAL
14.22
14.63
35.53
35.53
35.53
35.53
TOTAL LIABILITIES
98.37
152.42
174.59
177.56
176.30
177.68
GROSS BLOCK
18.85
89.32
89.32
89.32
89.32
89.32
Less: Depreciation
(0.36)
(4.32)
(10.80)
(17.29)
(23.77)
(30.25)
NET WRITTEN DOWN VALUE
18.50
85.00
78.52
72.04
65.55
59.07
TOTAL OF FIXED ASSETS
18.50
85.00
78.52
72.04
65.55
59.07
Work in Progress
40.26
5.00
10.00
10.00
10.00
10.00
10.00
Stocks
2.91
2.92
6.06
6.06
6.06
6.06
Maintenance Stocks
0.50
1.00
4.20
4.20
4.20
4.20
Spares
1.20
1.20
5.04
5.04
5.04
5.04
Debtors
12.99
13.01
29.09
29.09
29.09
29.09
Cash & Bank Balances
12.37
31.34
35.93
47.59
55.01
63.97
Deposits
0.25
0.25
0.25
0.25
0.25
0.25
Preoperative expenses to be written off
4.40
7.70
5.50
3.30
1.10
39.62
67.41
96.07
105.53
110.75
118.61
98.37
152.42
174.59
177.56
176.30
177.68
SOURCES OF FUND
P&M
SUB-TOTAL
SECURED LOAN :
Current Liability
APPLICATION OF FUND
FIXED ASSETS:
CURRENT ASSETS:
TOTAL ASSETS
Report
January, 2013
7.11 Projected Cash Flow Statement

Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Net Profit after Tax
1.81
5.75
28.06
29.77
31.42
34.05
Depreciation
0.30
2.70
4.46
4.46
4.46
4.46
Amort. of Prel., Pre-op & Tech

Con.Exps.
(Increase)/Decrease in current
assets
Total
1.10
2.20
2.20
2.20
2.20
1.10
(13.51)
(0.50)
(21.42)
(10.29)
10.15
13.30
36.43
38.08
39.61
22.01
14.40
PARTICULARS
Cash from operating activities
Cash from financing activities

Share Capital - Promoters
Capital Subsidy
Term Loan
51.42
24.08
(18.88)
(18.88)
(18.88)
(18.88)
Central Subsidy
8.96
10.67
Bank Borrowings for WC
10.13
0.37
16.06
Dividends including div tax
(5.89)
(5.89)
(11.78)
(11.78)
Total
92.53
49.53
(8.70)
(24.77)
(30.66)
(30.66)
Cash from investing activities

Capex
(59.12)
(30.21)
preoperative
(5.50)
(5.50)
Contingency RF
(5.00)
(5.00)
Deposits
(0.25)
Total - Investing Activities
(69.87)
(40.71)
Total For the Period
12.37
18.97
4.59
11.66
7.42
8.96
Opening cash balance
12.37
31.34
35.93
47.59
55.01
Closing
12.37
31.34
35.93
47.59
55.01
63.97
Report
January, 2013
SECTION
8:
ANNEXURES
Report
January, 2013
Annexure 1: Site Master Plan
Report
January, 2013
Annexure 2: IMA Plant Layout
Report
January, 2013
Annexure 3: Diffenbacher Plant Layout
Report
January, 2013
Annexure 4: Bamboo Board Results
Report
January, 2013
Annexure 5: Tissue Culture Lab- Current Infrastructure
Report
January, 2013
Report
January, 2013
Annexure 6: Letter for Technological Tie Up- Tissue Culture
Report
January, 2013
Report

TEV Study For Bamboo Project

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INTEGRATED BAMBOO PROJECT

ARTISAN BAMBOO PRODUCTS PRIVATE LIMITED

3NS Capital Ventures Pvt. Ltd.

1.1.2 Project Rationale

1.1.3 Sector Outlook

1.1.4 Project in a Nutshell

1.1.5 Cost of the Project

1.1.6 Brief Financials of the Project

1.2. Project at a Glance

Objective of the Report and Introduction to the Proposal

2.2. Key Findings & Recommendations

2.2.1 Management Analysis Conclusion

2.2.2 Technical Analysis Conclusion

2.2.3 Business Analysis Conclusion

2.2.4 Financial Analysis Conclusion

3.2. Key Management Team

3.3. Background of the Main Parent Company

3.3.1 Holding Structure

4.2. Bamboo: Introduction

4.2.1 What is Bamboo

4.3. Uses of Bamboo

4.3.1 Culm Based Products

4.3.2 Industrial Based Products

4.3.3 Other Uses

4.3.4 Additional Benefits from Bamboo

4.3.5 Bamboo vs. Hardwood Trees

4.4. Global Bamboo Industry Scenario

4.4.2 Main Markets for Bamboo

4.4.3 Market Potential

2|Page - Artisan Bamboo Products Private Limited-TEV Report

4.6. Indian Scenario

4.6.1 Bamboo Industry in Tripura

5.2. Location & Site Details

5.2.2 Site Details

5.2.6 Locational Advantage

5.2.7 Approvals & Permissions required

5.3. Approach & Availability of Land

5.3.1 Land for Tissue Culture Lab

5.3.2 Land for Proposed Factory

5.4. Total Cost Estimation

5.5. Infrastructure & Environmental Considerations

5.5.1 Water Availability

5.5.2 Power Availability

5.5.3 Environmental Considerations

5.6. Project Implementation Schedule

5.7. SWOT Analysis

5.8. Socio- Economic & Environmental Impact

5.9. Initiatives for Agri Business Development for Tripura Tribes

5.10.1 Plant Design

5.10.2 Equipment Supply Contracts

5.10.3 Note on the Technology

5.11. Availability & Requirement of Workforce

5.12. Bamboo Value Capture

6.1.1 Tissue Culture Lab Development of Saplings

6.1.2 Technological Tie up for Development of Saplings in Tissue Culture Lab

6.1.3 Proposed Planting Scheme - Key Support Activity for Manufacture of

3|Page - Artisan Bamboo Products Private Limited-TEV Report

6.1.5 Sales Analysis of Saplings & Viability

6.2. Manufacture of Bamboo based Fiber Boards

6.2.2 Manufacture of Fiber Boards Quality Checking Procedure

6.2.3 Manufacture Process Flow Chart

6.2.4 Plant & Machinery and Vendors