GO WITH CONDITIONS

Plant Capacity Decision: 2 TPH vs 5 TPH

Investment decision framework — CAPEX · Returns · Scale economics · Risk profile · Go/No-Go recommendation

RECOMMENDATION: 5 TPH PLANT — GO WITH CONDITIONS

5 TPH delivers superior IRR (108.9% vs 97.4%), higher NPV (₹39.1 Cr vs ₹13.8 Cr), and better fixed-cost absorption per tonne. Recommended subject to debt availability and feedstock security.

TPH PLANT

CONSERVATIVE
Total CAPEX₹2.50 Cr
Equity Required₹1.00 Cr
Debt Required₹1.50 Cr
Design Capacity12,000 T/yr
Yr1 Revenue₹7.20 Cr
Yr2 Revenue₹9.39 Cr
Yr2 EBITDA₹3.55 Cr
Yr2 EBITDA Margin37.7%
Yr2 PAT₹2.40 Cr
Project IRR97.4%
Equity IRR202.7%
NPV @ 14%₹13.8 Cr
PaybackYr 1.2
DSCR (Yr2)8.54x
VC per Tonne₹4,500/t

TPH PLANT

RECOMMENDED
Total CAPEX₹6.25 Cr
Equity Required₹2.50 Cr
Debt Required₹3.75 Cr
Design Capacity30,000 T/yr
Yr1 Revenue₹18.0 Cr
Yr2 Revenue₹23.5 Cr
Yr2 EBITDA₹9.94 Cr
Yr2 EBITDA Margin42.3%
Yr2 PAT₹6.82 Cr
Project IRR108.9%
Equity IRR231.9%
NPV @ 14%₹39.1 Cr
PaybackYr 1.1
DSCR (Yr2)9.58x
VC per Tonne₹4,500/t

Head-to-Head Decision Matrix

✓ marks the winner per metric

Metric2 TPH5 TPH
CAPEX & Financing
Total Project Cost
Lower entry barrier
₹2.50 Cr✓₹6.25 Cr
Equity Required
₹1.00 Cr✓₹2.50 Cr
Debt Required
₹1.50 Cr✓₹3.75 Cr
Design Capacity
2.5× more output
12,000 T30,000 T✓
Returns
Project IRR
Higher = better
97.4%108.9%✓
Equity IRR
202.7%231.9%✓
NPV @ 14%
Absolute value creation
₹13.8 Cr₹39.1 Cr✓
Payback Period
Lower = faster recovery
Yr 1.2Yr 1.1✓
Profitability
Yr2 EBITDA
₹3.55 Cr₹9.94 Cr✓
Yr2 EBITDA Margin
Scale advantage
37.7%42.3%✓
Yr2 PAT
₹2.40 Cr₹6.82 Cr✓
VC per Tonne
Lower = better unit economics
₹4,500✓₹4,500
Risk & Debt Service
DSCR (Year 2)
Target > 1.5x
8.54x9.58x✓
DSCR (Year 3)
9.80x10.96x✓

Financial Performance Comparison

₹ Crores

Multi-Dimensional Score Radar

Normalized 0–100 across 6 dimensions

Choose 5 TPH When

  • Equity of ₹2.5 Cr+ is available or can be raised
  • Debt of ₹3.75 Cr+ is accessible (CGTMSE / bank term loan)
  • Feedstock supply of 28,500+ T/yr is secured or contracted
  • Offtake agreement with NTPC / TPP / industrial buyer in place
  • Long-term scale and market leadership is the objective
  • Carbon credit monetisation is being pursued (adds ₹3–5 Cr/yr)

Choose 2 TPH When

  • Equity is constrained to ₹1 Cr range — lower capital risk
  • Feedstock supply is uncertain — test market with smaller volume
  • First-time operator — build operational experience at lower scale
  • Regulatory / land approvals are still in progress
  • Phase 1 strategy: prove model, then expand to 5 TPH in Yr 3–4
  • Faster payback preferred over maximum NPV