VARSHA MINING INDUSTRIES

Kranthi Kumar (20FMUCHH010329)

Dharam Tej (20FMUCHH010132)

Narasimha rao (20FMUCHH010204)

Harsh Daga (20FMUCHH010187)

Akshay Chandra (20FMUCHH010823)

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 EXECUTIVE SUMMARY :

VARSHA MINING INDUSTRIES is established with the mission to acquire

abandoned mines with known and proven reserves left for centuries and also
develop sustainable and environment-friendly practices in the mining industry by
Narasimharao who has been working in the field of mining for the past 10 years.
The headquarters will be located in Ramagundam, Telangana. We at VARSHA
MINING INDUSTRIES various products like coke, Middlings, Tar and etc. to the
potential target audience using the efficient coal mining method and by using
sustainable mining practices so that minimum harm is caused to the environment.
The company has raised Equity capital of 20 Lakhs for the investment and the
remaining 10,30,000 is self-funded. Company uses no debt. Our main target
audience would be power production companies, steel manufacturers and cement
manufacturers. 8% discount will be given in the initial 5 months to attract the
target audience and Theron a similar pricing strategy of competitors will be used.

By 2035 we are aiming to have a 3% market share in the industry and we will
adopt sustainable practices and zero-waste methods to reduce our carbon footprint
and increase efficiency.

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COMPANY OVERVIEW
VARSHA Mining Industries is a mining company engaged in the exploration, development,
mining, processing of coal in various regions. The headquarters will be located in Ramagundam,
Telangana. Narasimha Rao will be the owner and CEO of the company.

• Mission Statement: VARSHA MINING INDUSTRIES’S mission for the development of

the mining industry is to partner with the Government of India to acquire abandoned mines
with known and proven reserves left for centuries and also develop sustainable and
environment-friendly practices in the mining industry.
• Management Team:
1. Site Supervisor - responsible for the supervision of the entire operations both the Mining &
Crushing/Agglomeration and the continuous 24-hour Heap Leach Operations.
2. Bookkeeper – responsible for the administration and recording of accounts and the payroll
of personnel.
3. Warehouse Clerk – in charge in the administration of the small material supplies of the
project.
4. Security Officer – responsible of the project security administration and operations.
Reporting directly to the Site Supervisor.
5. Community Relations Officer – responsible of the social and community aspect.
6. Surveyor, Mechanic, Electrician, 3 Samplers/survey aid, 3 Heavy Equipment checker, 3
Heap and 4 Recovery Plant Operators and 4 Helpers, a Staff cook and a helper, service and
truck drivers, an Environmental sampler and 5 Agency Security Guards.

Professional and Advisory Support Management Organization as follows:

• Dharam tej– Vice-Chairman
• Narasimharao– President and Chief Executive Officer
• Akshay - – Chief Operating Officer
• Harsh- Independent Chief Financial Officer / CPA

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 Startup Expenses and Capitalization

Start-up Expenses
Legal 1,00,000
Stationery etc. 80,000
Insurance 1,50,000
Rent 2,00,000
Research and Development 10,00,000
Expensed Equipment 15,00,000

Authorized Share capital: 80 Lakhs

Paid up share capital: 20 Lakhs
No debt

Product Description

VARSHA mining industries will provide the following products to its customers.

Bituminous & Sub-Bituminous Coal: We’ll provide bituminous and sub-bituminous coals
that are mainly used in power industries to produce electricity.

Middlings: Middlings are by-products of the three-stage coal washing/beneficiation process, as

a fraction of feed raw coal.

• Used for power generation

• Also used by domestic fuel plants, brick manufacturing units, cement plants, industrial plants,
etc.

Metallurgical Coal: We’ll provide metallurgical coal that is primarily used in making steel.

Cannel Coal: We’ll also offer cannel coal used to produce luminous flames.

Coke: Another major product of ours will be the coke, left-out residue of coal that has several
uses.

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Coal Tar: We’ll also provide coal tar that is used to make perfumes, pesticides, dyes, etc.

Other Residues: Other residues left after processing raw coal such as silica, coal gas will also
be sold by us.

Why the Coal mining business?

Recently, the government opened the coal sector to private. It is believed that coal will be the
biggest contributor to India’s aim of becoming a $5 trillion economy. The government has opened
a new single-window clearance system. So, it is easier than ever to start a coal business in India
and the government is making industry-friendly policies.

Market segmentation:

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• Power Production Companies: The biggest consumer of our processed coal will be
power production companies. As bituminous coal, sub-bituminous coal is used as thermal coal
to produce steam.
• Steel Manufacturers: 70% of the steel manufactured uses coal. As coking coal is essential
for steel manufacturing thus such companies will be a good target for us.

• Cement Manufacturers: coal is mainly used as an energy source for cement production.
So, cement manufacturers will also be our target audience.
• Chemical Companies & Medical Facilities: Several companies such as those
producing shampoos, dyes, paints, etc. will be needing our products. Moreover, pharma
industries and medical facilities will need coal.
• Others: Individual buyers and other companies who require coal products will also be our
target customers.

Pricing Strategy
We will use the same pricing as our competitors in the industry. But for the initial 5 to 6 months
we offer 8% discount to attract our target audience.

Competitive Analysis
Our biggest competitive advantage is that the market in which our products are demanded is really
large. Though there are other already-established coal companies, still we hope to get customers
as the need for coal is increasing with the passage of time. Also, we own the best equipment, highly
qualified and skilled staff, who’re efficient in all the works from blowing a mountaintop to generate
coal tar from coal. We will also provide online buying which most other players in the industry
don’t offer, so, we will make it easier for the buyers to order their desired products at the said time.

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 Market trends

• As per the provisional statistics of the Ministry of Coal, during September 2022, CIL,
SCCL and captive mines/others registered a growth of 12.35 %, 8.43% and 12.37 % by
producing 45.67 MT, 4.93 MT and 7.33 MT respectively.
• Of the top 37 mines, 25 mines’ production level has been more than 100 percent and
another five mines’ production stood between 80 and 100 percent during September
• Simultaneously, coal despatch also increased by 1.95 percent to 61.18 million tonnes in
September 2022, up from 60.02 MT the previous year. CIL, SCCL, and Captive
mines/others increased by 1.03, 4.13, and 6.84 percent in September 2022, despatching
48.88 MT, 4.77 MT, and 7.53 MT.
• Power utility despatch increased to 51.71 MT in September 2022, up from 50.16 MT at
the same time last year. In September of this year, coal-fired power generation increased
by 13.40% over the previous year.
• Overall power generation in September’22 was 13.77% higher than power generation in
September 2021.
• Coal prices of South African thermal coal, a global benchmark, have been on an upward
trajectory since November 2021 and the geopolitical tensions between Russia and
Ukraine have caused significant price fluctuations since the beginning of FY23

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 SWOT Analysis:

Business Targets:
Business targets set by VARSHA mining industries are:
• To maintain the amount of minimum cash balance
• To lower the wastage of resources by 20% every year by increasing work efficiency
• To increase our sales by 30% every three months

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 Projected Profit and loss statement:

Year Mar 23
INCOME :
Sales Turnover + 294.55
Excise Duty 0.00
Net Sales 294.55
Other Income + 0.01
Stock Adjustments + 0.00
Total Income 294.56
EXPENDITURE :
Raw Materials + 0.00
Power & Fuel Cost+ 0.00
Employee Cost + 0.67
Other Manufacturing Expenses + 270.99
Selling and Administration Expenses + 0.05
Miscellaneous Expenses + 11.78
Less: Pre-operative Expenses Capitalised+ 0.00
Total Expenditure 283.49
Operating Profit 11.07
Interest + 0.01
Gross Profit 11.06
Depreciation+ 0.00
Profit Before Tax 11.06
Tax+ 2.78
Fringe Benefit tax+ 0.00
Deferred Tax+ 0.00
Reported Net Profit 8.27
Extraordinary Items + 0.00
Adjusted Net Profit 8.27
Adjst. below Net Profit + 0.00
P & L Balance brought forward 0.84
Statutory Appropriations 0.00
Appropriations + 0.00
P & L Balance carried down 9.11
Dividend 0.00
Preference Dividend 0.00
Equity Dividend % 0.00
Dividend Per Share(Rs) 0.00
Earnings Per Share-Unit Curr 413.68
Earnings Per Share(Adj)-Unit Curr 0.00
Book Value-Unit Curr 465.67
Book Value(Adj)-Unit Curr 0.00

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 Projected Balance Sheet:
Year Mar 21
SOURCES OF FUNDS :
Share Capital + 0.20
Reserves Total + 9.11
Equity Share Warrants 0.00
Equity Application Money 0.00
Total Shareholders Funds 9.31
Secured Loans + 0.00
Unsecured Loans + 0.00
Total Debt 0.00
Other Liabilities+ 0.00
Total Liabilities 9.31
APPLICATION OF FUNDS :
Gross Block + 0.01
Less : Accumulated Depreciation + 0.01
Less:Impairment of Assets 0.00
Net Block + 0.00
Lease Adjustment 0.00
Capital Work in Progress+ 0.00
Producing Properties 0.00
Investments + 0.00
Current Assets, Loans & Advances
Inventories + 0.00
Sundry Debtors + 22.35
Cash and Bank+ 0.65
Loans and Advances + 28.25
Total Current Assets 51.25
Less : Current Liabilities and Provisions
Current Liabilities + 43.63
Provisions + 0.00
Total Current Liabilities 43.63
Net Current Assets 7.61
Miscellaneous Expenses not written off + 0.00
Deferred Tax Assets 0.00
Deferred Tax Liability 0.00
Net Deferred Tax 0.00
Other Assets+ 1.70
Total Assets 9.31
Contingent Liabilities+ 0.00

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 Sales Strategy

We will introduce our startup to the groups of our target customers by sending letters and
brochures about us. We’ll ensure strong social media and web presence. Lastly, we’ll provide
several discounts to encourage more and more customers to make a purchase.

Vision 2035
We are targeting to achieve 3% market share in the industry by 2035 and we will have made
real progress in reducing our carbon footprint and achieved our ambition of becoming net zero
by 2030. We will be ready to go beyond that, maximizing the use of socially sustainable
renewables on our sites, increasing habitat and space for nature and reducing waste wherever
possible.

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