RATIONALE FOR ADDING SOYA

SOLVENT PLANT IN MP
INDUSTRY POLICY

IB GROUP /
ABIS EXPORTS (INDIA) PVT. LTD.
 HIGHLIGHTS FOR REASON OF DECILING SOYA
PRODUCTION IN MP
The production & yield along with Area of Soya seed in M.P has been declining every year due to:

In the last decade, the oil industry sector in Madhya Pradesh has witnessed a meagre investment of merely 100
01
Crores, owing to the unfavourable policies of the state government towards this sector.
Maharashtra, Rajasthan and other prominent states have witnessed phenomenal growth in the OIL industry,
02 the oil production in these states has been explosive which in turn has helped farmers multiply their income
at a rapid pace synced in line with the central governments “Self sustainable Indian Oil Seed Mission”
The state of Madhya Pradesh, with a population of 72 million source (www.census2011.co.in) consuming an average of
18 KG oil per capita source (www.currentscience.ac.in), requires approximately 1,296,000 tonnes of oil; however,
03 with India's total oil production standing at approximately 3,070,000 metric tonnes, the deficit for Madhya Pradesh is
stark, in comparison to the nation's overall production, underscoring the urgent need for attention to address the oil
scarcity.

04 There is no direct linkage of plants with farmers for procurement or any technology improvement and
assistance for their crop.

05 The existing plants have not been running in full capacity due their policies and technology

25%-30% of Soya bean seed produced is exported out of the state for crushing either in Rajasthan or
06 Maharashtra. This can be verified by the GST department.
 HIGHLIGHTS FOR REASON OF DECILING SOYA
PRODUCTION IN MP
The production & yield along with Area of Soya seed in M.P has been declining every year due to:

Non-motivated farmers due to their low income because of the middleman and trades and no direct purchase
07
from Solvent plants.

As the existing industries are not focused on technology & improvement, focus on providing better seed to the
08 farmers.

09 Majority of current plants are with outdated technology producing inferior grade Soya DOC low protein, high
sand silica, high fiber product.
 ISSUES of CURRENT SOYA SOLVENT PLANTS IN MP

The current plants installed produce Soya DOC with above 2% Sand Silica and the industry needs 1% and
01 below. Same as Industry needs maximum 4% Fiber and the current plants struggle to products to these
standards.

02 Existing plants in MP use old Solvent crushing technology making them non-viable, as the quality of
Soya DOC produced is low quality with high Sand Silica and fiber.

03 The method of payment and remuneration of the plants to farmers are out dated making farmers non
motivated.

04 MP removed an Agro based industry like Soya Solvent from the list of preferred industries. Rest of the
states have openly promoted Agro and Food Processing sector in their respective schemes.

Unfavourable policies restricted the investment in the region in last 5 years.

05
 ADVANTAGES OF ADDING AND PROMOTING NEW
PLANTS IN MP
Approximately 3,000 Crores investment is envisaged year on year from Solvent plant
01 and refinery this will help thousands of people with job prospects and shall also
benefit the state government generate revenue through direct and indirect taxes

02 The farmers too shall benefit greatly as investors will buy soya bean from farmers at maximum
market price.

03 The increase in oil production shall help improve our country’s currency in the international
market, which in turn shall help the consumers to purchase oil at the right price.

The increase in SOLVENT production plant shall also benefit the feed plants such as (fish
04
feed, poultry feed and cattle feed) since raw material will be easily available

Considering the solvent plant under the MP industrial policy shall greatly benefit our state
05 government as there will be a sizeable increase in the governments revenue in form of direct
and indirect GST’s, concurrently producing thousands of jobs and enabling consumers to buy
oil at right & affordable price.
 ADVANTAGES OF ADDING AND PROMOTING NEW
PLANTS IN MP
The use of latest technology proposed in the ABIS Exports project plant ensures
06 minimum sand silica and Fiber which is a must for the current livestock genetics in
Poultry and Aquaculture.

07 The latest technology ensures Minimum Amino Acid losses, securing maximum bioavailable
protein and Amino Acid balances in the Soya Doc required for Right animal feed.

08 The latest refining technique also ensures minimum wastage and energy efficient technology
for Better Environment conservation and protection.

09 Direct purchase with No Middlemen

10 Cash payment within 24hrs from time of delivery at Plant.

11 5-7% increase in crop production due to 3Ps security - Purchase, Payment & Price
SOLUTION TO THE EXISTING
CHALLENGES IN MP
SOYABEAN PRODUCTION IN MP & MH FROM 2012 TO 2021
SOYBEAN PRODUCTION IN MP & MH FROM 2012 TO 2021
In Million Metric Tons

Year Sowing Area Yield Production

M.P M.H M.P M.H M.P M.H

2012 58.1 32.13 1116 1196 64.8 38.5
2013 62.6 38.7 684 982 42.8 38.0
2014 55.4 38.0 896 631 49.6 24.0
2015 56.1 35.8 608 614 34.1 22.0
2016 54.0 35.8 1020 1045 55.0 37.4
2017 50.1 34.5 838 841 42.0 29.0
2018 54.0 36.3 1075 944 58.2 34.3
2019 51.9 37.4 772 1055 40.1 39.4
2020 58.5 40.4 714 1125 41.8 45.4
2021 55.6 43.8 939 1102 52.3 48.3

Source: SOPA Databank & Ministry of Agriculture & Farmers Welfare

 Soya Bean Sowing Area from 2012 to 2021
70 DECLINING TREND IN M.P
62.605
60 58.128 58.541
55.462 56.128 55.687
54.01 54.099
51.952
50.1
50
43.848
40.398
38.703 38.008 36.39 37.365
40 35.852 35.809 34.484
32.13
30

20

10

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
M.P 58.128 62.605 55.462 56.128 54.01 50.1 54.099 51.952 58.541 55.687
M.H 32.13 38.703 38.008 35.852 35.809 34.484 36.39 37.365 40.398 43.848

M.P M.H Expon. (M.P) Linear (M.H)

1. The Soya Bean Sowing Area is raising year on year in Maharashtra.

2. From the last 5 years the is Soya bean sowing area in Maharashtra is on a predictive
growth, while the Soya bean sowing area in Madhya Pradesh is declining.
Source: SOPA Databank & Ministry of Agriculture & Farmers Welfare
 Soya Bean Yield 2012 to 2021
1500 DECLINING TREND IN M.P

1196
1116 1125 1102
1075 1055
1020 1045
982
1000 944 939
896
838 841
772 714
684
631 608614

500

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
M.P 1116 684 896 608 1020 838 1075 772 714 939
M.H 1196 982 631 614 1045 841 944 1055 1125 1102

M.P M.H Expon. (M.P) Linear (M.H)

1. The Soya Bean Yield is raising year on year in Maharashtra.

2. From the last 5 years the is Soya bean Yield in Maharashtra is on a predictive growth,
while in Madhya Pradesh it is declining.
Source: SOPA Databank & Ministry of Agriculture & Farmers Welfare
 Soya Bean Production from 2012 to 2021
70 DECLINING TREND IN M.P
64.861

60 58.18
55.068
52.292
49.679 48.325
50 45.446
42.849 42.001 41.774
40.10739.415
40 38.423 38.002 37.429
34.124 34.343
29.003
30
24.002
22.00
20

10

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
M.P 64.861 42.849 49.679 34.124 55.068 42.001 58.18 40.107 41.774 52.292
M.H 38.423 38.002 24.002 22.00 37.429 29.003 34.343 39.415 45.446 48.325

M.P M.H Linear (M.P) Linear (M.H)

1. The Soya Bean Production is raising year on year in Maharashtra.

2. From the last 5 years the is Soya bean Production in Maharashtra is on a predictive
growth, while in Madhya Pradesh it is declining.
Source: SOPA Databank & Ministry of Agriculture & Farmers Welfare
 SOLVENTS IN M.P
Summary
1.Total 18 plants with capacity of 8,450 Tons
are Closed.

2. Total 49 plants with capacity of 34,350

Summary of Solvents in M.P Tons are Operational.
Daily Crushing
Operational
Count Capacity 3. The working plants are operating with
Status
(In Tons) less than 30-40% of the plant capacity
Closed 18 8,450 because of their old technology and
policies.
Operational 49 34,350
Total 67 42,800 4. 10-12 plants have diverted from Soya
bean to mustard or other plants.

5.25%-30% of Soya bean seed produced is

exported out of the state for crushing either
in Rajasthan or Maharashtra. This can be
verified by the GST department.
 OBSERVATIONS

M.P is neglecting Central Govt. Hon’ble Prime Minister Shri. Narendra Modi Ji’s of self
01 sustainable Indian Oil Seed Mission

02 Number of plants there in M.P most of them have got shut down.

There is no progress because of the policies and farmer’s remuneration not given on time,
03 which is why the farmers are not motivated in M.P.

Comparatively the policy of Maharashtra, it is in positive list and lot of benefits given to the
04 industry.

05 There are multiple plants which are setup in Maharashtra in the last 7-8 years.
 OBSERVATIONS

06 Leading to positive trend of growth in production as well as in the acreage in Maharashtra.

07 Govt. data shows the every year the area, yield and production is declining in M.P.

If we setup and remunerate the farmers directly to the plants which is our focus it will
08 beneficial for the growth and employment as well as for the farmers.

Soya bean seed produced is exported out of the state for crushing either in Rajasthan or
09 Maharashtra.
 EXISTING INCENTIVES FOR SOYA SOLVENT PLANTS IN
MAHARASHTRA
With a view to ensure better prices & stability for agricultural commodities, Government has issued a Resolution
under which changes have been announced for Agro based food processing sector for availing incentives under the
Maharashtra Industrial Policy 2019

Revised threshold to qualify as ‘Mega ► A Unit making minimum investment of INR 200 Cr. & employing 300
Unit’ people in the Vidarbha area would qualify as a ‘Mega Unit’.

Investment Period ► 5 years - investment should commence within the policy period

Standard Incentives (as available to 80% Gross SGST reimbursement for 9 years (9 years
Industrial Promotion Subsidy
a large unit) extendable to Agro based food processing units)
Stamp Duty Exemption 100%

Electricity Duty Exemption 100% for 9 Years

Customized package of incentives may be granted to ‘Mega Units’ on ‘case to case basis’ over and above the
standard incentives with a value cap of 100% of Fixed Capital Investment

- This is the bare minimum support and special incentives given based on the investment.

- This support from Govt. of Maharashtra is highly motivating to the investors and will have direct positive impact
for state’s growth along with farmers with benefits and increased earnings and with increased productivity of
Soyabean.
 ADVANTAGES OF OUR PROPOSED
INFRASTRUCTURE TECHNOLOGY OVER
EXISTING ESTABLISHMENTS
 RATIONALE FOR INVESTMENT FROM ABIS-IB
GROUP
Present Installed Plant
Drawbacks
Toxicity Control For Livestock
1. Removal Of Black And Damaged (Fungal/Infected)
Seed Segregation And Removal Technology Is Limited
Which Is Required To Remove Toxicity For Livestock
Feed, Like T2, Acratoxin, Aflatoxin Etc.
Vs
2. Sand Silica Control
Current Installed Plant Cannot Control Sand Silica In
The Protein Meals Which Needs To Be Controlled
Below 1% By Volume As A Standard Requirement
Globally And In India For All Major Poultry And Other
Livestock Feed.
Today M.P Plants Produce Meals With Sand Silica
Above 2% Plus Which Is 200% Over The Permissible
Requirement Of Livestock Feed.
Future Technology
Investment By IB Group
IB Group State-of-the Art European Standard
Technology
Which Focused On Micro Pre-cleaning Of The
Seed For Removal Of Damaged Seed, Fungal
Infected Seed (Black Seed), Wood-twigs.
Destoning Process For Sand Silica And Soil
Lump Control Followed By Conditioning De-
hulling Sequenced With Jet Drying Process,
First Introduced By IB Group In India
Followed By Cooking And Flicking To Have
Optimal Exclusion.
 RATIONALE FOR INVESTMENT FROM ABIS-IB GROUP
CONTI...
Present Installed Plant Future Technology
Drawbacks Investment By IB Group

3. Traditional 15-20 Year Old Technology Of Plant
Machinery & Equipment
4. Investment Was 5-15 Crores At The Time Of
Commissioning Of Old Plants Using Old
Technology
5. Not Designed For Optimal Oil Extraction &
Quality Protein Meal Production Required For
Livestock Feed Industry
IB Group Investing State-Of-The Art Latest
Technology With 200-300 Cr Plant &
Machinery To Establish The State Of The Art
Latest Technological Advanced Soya
Extraction Plant Focused On Optimal Oil
Vs Production & Protein Meal Produced As Per
Global Stand Required For Livestock Feed For
Different Range Of Livestock Available
(Cattle, Poultry, Fish (Aqua)
 RATIONALE FOR INVESTMENT FROM ABIS-IB GROUP
(CONTI...)
Present Installed Plant Future Technology
Drawbacks Investment By IB Group

7.India is not a choice of Soya DOC importers
across the globe for its Low Quality Protein Meal
Standards Compare To The Required Livestock
Feed Requirement.
Vs
IB Group Has Been Focus On Quality Oil Meal
Production For The Livestock Feed In The
Country And Is Focused To Put India For Live
Stock Feed And Protein Meal Exports On The
Global Map For Its Quality Standards,
Uplifting Indian Farmers.
IB GROUP NEW PROJECT IN M.P.
CONTRIBUTIONS TO THE STATE
 BENEFITS TO THE STATE

Direct and Indirect Earning for the State

- Direct Revenue from TAX Collection
A. Oil Refinery
B. B. DOC
C. C. Poultry Feed
D. Revenue from Electricity Consumption
E. Revenue from Linked Logistics and Supply Chain through Railway and Local Transports
F. Revenue from Income Tax on Employment
G. Discharging of gross SGST and Income Tax share for State Government

Financial Relief to Farmers

• Direct purchase with No Middlemen
• Cash payment within 24hrs from time of delivery at Plant.
• 5-7% increase in crop production due to 3Ps security - Purchase, Payment & Price.

Local Job Creation

IB Groups investment shall create at least 1,500 Direct and 75,000 Indirect jobs and increase the
earning potential of the locals along with Downstream opportunities for Approx. 400 families
 CONTRIBUTION TO THE STATE
Sl. No. Particulars Amount (INR in Cr.)
A Contribution from Project for 25 years:
1 Contribution on sale of product:
- SGST on intra-state supply of soyabean oil 981
- SGST on intra-state supply of De-oiled cake 485
- SGST ITC reversal on intra-state supply of animal feed (including 377
INR 3,800 Cr.
SGST reversal on transportation)

2 Contribution on purchase of soyabean seeds: Contribution to state in 35 years

- Mandi tax on intra-state purchase of soyabean seeds 820

3 Contribution on electricity:
- Electricity Duty 35
- Incremental Power Tariff Cost as compared to Chhattisgarh 13
75000 ++ nos.
4 Share of State in Central taxes:
- Income tax (including income tax share on employee salary) 52
- CGST & IGST 219
Direct and Indirect employment generation in
B Terminal benefits to state for further 10 years 787 the state

Total 3,769

C Employment generation:
- Direct employment 1,500
- Indirect employment 75,000
- Downstream opportunities 400 families
 SOLVENT EXTRACTION / REFINERY PLANT – EDIBLE OIL
- CONTRIBUTION TO STATE
Sl. Year 6 to
Particulars UoM Year 1 Year 2 Year 3 Year 4 Year 5 Total
No. Year 25
1 Installed Capacity:
- Per day MT 2,000 2,000 2,000 2,000 2,000 2,000 -
- Per annum MT 6,00,000 6,00,000 6,00,000 6,00,000 6,00,000 6,00,000 -

2 Expected capacity % 50% 60% 70% 75% 80% 85 to 100% -

utilisation:

3 Inputs required: (Soyabean MT 3,00,000 3,60,000 420,000 450,000 4,80,000 1,18,20,000

seeds)

4 Output Manufactured:
- Soyabean oil (17.1%) MT 51,300 61,560 71,820 76,950 82,080 20,21,220
- De-oiled cake (80%) MT 2,40,000 2,88,000 3,36,000 3,60,000 3,84,000 94,56,000

5 Soyabean oil sales:

- Sale Price (5% increase YoY) INR/MT 1,20,000 1,26,000 1,32,300 1,38,915 1,45,861 253,208 -
- Intra-state supply (70%): INR in Cr. 431 543 665 748 838 36,030 39,255
- Inter-state supply (30%): INR in Cr. 185 233 285 321 359 15,441 16,824
-- IGST amount INR in Cr. 9 12 14 16 18 772 841
-- CGST amount INR in Cr. 11 14 17 19 21 901 981
-- SGST amount INR in Cr. 11 14 17 19 21 901 981
 SOLVENT EXTRACTION / REFINERY PLANT – DE-OILED
CAKE
Sl.
No.
Particulars - CONTRIBUTION
UoM Year 1 Year 2 TO
Year 3 STATE
Year 4 Year 5
Year 6 to
Year 25
Total

1 Installed Capacity:
- Per day MT 2,000 2,000 2,000 2,000 2,000 2,000 -
- Per annum MT 6,00,000 6,00,000 6,00,000 6,00,000 6,00,000 6,00,000 -

2 Expected capacity utilisation: % 50% 60% 70% 75% 80% 85 to 100% -

3 Inputs required: (Soyabean seeds) MT 3,00,000 3,60,000 420,000 450,000 4,80,000 1,18,20,000

4 Output Manufactured:
- Soyabean oil (17.1%) MT 51,300 61,560 71,820 76,950 82,080 20,21,220
- De-oiled cake (80%) MT 2,40,000 2,88,000 3,36,000 3,60,000 3,84,000 94,56,000

5 De-oiled cake:
- Captive consumption (Feed plant) MT 27,000 32,400 37,800 40,500 43,200 10,63,800 12,44,700
- Intra-state supply MT 42,600 51,120 59,640 63,900 68,160 16,78,440 19,63,860
- Inter-state stock transfer MT 1,70,400 2,04,480 2,38,560 2,55,600 2,72,640 67,13,760 98,19,300
- Stock Transfer Price INR/MT 50,000 52,500 55,125 57,881 60,775 1,05,504 -
-- IGST amount INR in Cr. 43 54 66 74 83 3,562 3,881
-- CGST amount INR in Cr. 5 7 8 9 10 445 485
-- SGST amount INR in Cr. 5 7 8 9 10 445 485
 ANIMAL FEED PLANT
- CONTRIBUTION TO STATE
Sl. Year 6 to
Particulars UoM Year 1 Year 2 Year 3 Year 4 Year 5 Total
No. Year 25
1 Installed Capacity:
- Per day MT 600 600 600 600 600 600 -
- Per annum MT 1,80,000 1,80,000 1,80,000 1,80,000 1,80,000 1,80,000 -

2 Expected capacity utilisation: % 50% 60% 70% 75% 80% 85 to 100% -

3 Animal Feed Production p.a. MT 90,000 1,08,000 1,26,000 1,35,000 1,44,000 35,46,000

4 Animal Feed sales:

- Sale Price (5% increase YoY) INR/MT 40,000 42,000 44,100 46,305 48,620 84,403 -
- Intra-state supply (70%): INR in Cr. 252 318 389 438 490 21,070 22,956
- Inter-state supply (30%) INR in Cr. 108 136 167 188 210 9,030 9,838
-- CGST credit reversal amount INR in Cr. 5 5 6 7 8 338 369
-- SGST credit reversal amount INR in Cr. 5 5 6 7 8 338 369
Thank You