A ₹12.52 Cr Hub & Spoke plastics recycling project mobilising 600+ SHG women, processing 3,000 tonnes annually, returning 48.6% Project IRR.
Decentralised collection & primary baling across 3 districts, operated by women's self-help groups.
Daily logistics from satellites to central hub at ₹0.12/kg, ensuring fair price discovery.
10 TPD hub input — flakes line + sheet extrusion line at 500 kg/hr at Vizianagaram MSME park.
Continuous operations across 300 working days deliver 3,000 TPA throughput.
| Product | TPA | ₹/kg | ₹ Cr |
|---|---|---|---|
| Scenario A — Hot-Washed Flakes only | 2,727 | 70 | 19.09 |
| Scenario B — Recycled Sheets (chosen) | 2,645 | 105 | 27.78 |
| Steady-state (Scenario B) | 2,645 | 27.78 |
Sheet extrusion adds ₹35/kg of value over flakes — preferred path. Off-take MoUs targeted with FMCG converters and construction-board OEMs. Pricing benchmarked to current market.
| Head | Description | ₹ Cr | Life (Yrs) | Annual Dep. (₹ L) | % Total |
|---|---|---|---|---|---|
| Building & Civil | Processing shed & civil works | 2.25 | 30 | 7.50 | 18.0% |
| Flakes Line | Bale → Hot-Washed Flakes (USD 350K @ ₹95) | 3.33 | 20 | 16.63 | 26.6% |
| Sheet Line | Flakes → Recycled Sheet (USD 350K @ ₹95) | 3.33 | 20 | 16.63 | 26.6% |
| Installation | Combined installation for both lines (USD 175K) | 1.66 | 20 | 8.31 | 13.3% |
| Electrical Setup | HT/LT panels, internal wiring & transformers | 0.75 | 20 | 3.75 | 6.0% |
| Capitalised Admin | 5% of hard capex — DPR, IDC, pre-operative | 0.85 | 20 | 4.24 | 6.8% |
| 6 Satellite Units | Baler + civil @ ₹6 L per SHG satellite | 0.36 | 20 | 1.80 | 2.9% |
| Total Project Cost | 12.52 | mixed | 58.85 | 100% | |
| ₹ Crores | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Capacity Utilisation | 50% | 75% | 100% | 100% | 100% |
| Revenue from Operations | 13.89 | 20.83 | 27.78 | 27.78 | 27.78 |
| COGS (Waste procurement, SHG fee, transport & hub processing) | (6.85) | (10.28) | (13.70) | (13.70) | (13.70) |
| Gross Profit | 7.04 | 10.55 | 14.08 | 14.08 | 14.08 |
| Manpower (Admin & Supervisory) | (1.20) | (1.30) | (1.39) | (1.43) | (1.47) |
| Repairs & Maintenance (2% mach. capex) | (0.23) | (0.23) | (0.23) | (0.23) | (0.23) |
| Insurance (0.5% total capex) | (0.06) | (0.06) | (0.06) | (0.06) | (0.06) |
| Selling & Marketing (5% of sales) | (0.69) | (1.04) | (1.39) | (1.39) | (1.39) |
| Working capital finance cost | (0.13) | (0.20) | (0.26) | (0.26) | (0.26) |
| Misc Admin (lumpsum) | (0.05) | (0.05) | (0.05) | (0.05) | (0.05) |
| EBITDA | 4.68 | 7.67 | 10.70 | 10.66 | 10.62 |
| EBITDA Margin % | 33.7% | 36.8% | 38.5% | 38.4% | 38.2% |
| Depreciation (SLM, asset-wise life) | (0.59) | (0.59) | (0.59) | (0.59) | (0.59) |
| Interest on Term Loan | (0.64) | (0.57) | (0.49) | (0.40) | (0.31) |
| Profit Before Tax | 3.45 | 6.51 | 9.62 | 9.67 | 9.72 |
| Tax @ 25.17% | (0.87) | (1.64) | (2.42) | (2.43) | (2.45) |
| Profit After Tax | 2.58 | 4.87 | 7.20 | 7.24 | 7.27 |
| PAT Margin % | 18.6% | 23.4% | 25.9% | 26.1% | 26.2% |
| Cumulative PAT | 2.58 | 7.45 | 14.65 | 21.89 | 29.16 |
Four enablers to unlock ₹27.78 Cr in annual circular economy value & 600+ livelihoods.
3 acres for the central recycling hub in Vizianagaram industrial park
Government to procure and supply the hub machinery (flakes + sheet lines, utilities) under the CFC grant
Statutory electrical permissions and deposit-free HT power connection and supply
¼ acre per SHG satellite unit with bundled machinery support for women-led operations
The machinery grant is sought under the Micro & Small Enterprises – Cluster Development Programme (MSE-CDP), Government of India · Ministry of MSME, facilitated in Andhra Pradesh by the AP MSME Development Corporation.
Two financing pathways compared on the same ₹12.50 Cr project — showing how the CFC route unlocks maximum SHG/MSME participation while minimising private capital at risk.
| Source | CFC Model | OWN Funded | ||
|---|---|---|---|---|
| % | ₹ L | % | ₹ L | |
| Karncy (SPV Promoter) | 20% | 250 | 65% | 812.5 |
| Government of India Grant | 70% | 875 | 35% | 437.5 |
| Andhra Pradesh Government | 10% | 125 | 0% | 0 |
| Total | 100% | 1,250 | 100% | 1,250 |
| Stakeholder | CFC | OWN |
|---|---|---|
| Karncy — Investment & Operations | 26% | 76% |
| University of Washington — Knowhow | 2% | 2% |
| Qbic & Aaroghya — Engg, Tech & Sales | 26% | 16% |
| Loop — IT Infrastructure | 6% | 6% |
| SHG / MSME & Beneficiaries (20) | 40% | 0% |
| Total | 100% | 100% |
| Stream (₹) | CFC | OWN |
|---|---|---|
| Payment to Waste Collector (₹18/kg) | 6,00,00,000 | 3,00,00,000 |
| Satellite Processing Fee — SHG (₹5/kg) | 1,50,00,000 | 75,00,000 |
| Transportation — Satellite to Hub | 30,00,000 | 30,00,000 |
| Profit Share — Post Tax (40% SHG stake) | 2,88,00,000 | — |
| Total Annual Distribution | 10,68,00,000 | 4,05,00,000 |
A purpose-built consortium bringing together patient anchor capital, deep engineering, digital traceability and market access — each partner accountable for a defined mandate.
KARNCY Venture Partners LLP is the anchor partner of the Vizianagaram Recyclers SPV. It contributes the promoter equity tranche, provides financial governance capability, and leads structuring, investor reporting and board-level oversight for the project. The firm specialises in early-stage impact and climate ventures across India.
Qbic Materials Inc. is the technology and engineering backbone — responsible for plant design, machinery selection, EPC delivery of the 10 TPD hub, commissioning of the flakes and sheet-extrusion lines, and end-to-end operations & maintenance. Qbic guarantees throughput, product quality and safety performance.
Loop Sustainability provides the digital nervous system of the project — a QR/IoT-enabled platform tracking every kilogram from SHG collection point to finished product. This delivers verifiable EPR compliance, real-time yield analytics and audit-grade traceability for brand off-takers.
Aaroghya Distribution is the market-facing arm — securing off-take contracts with FMCG brands, packaging converters, institutional buyers and export markets in the Middle East, Europe and America for recycled flakes and extruded sheets. The company brings an established B2B distribution footprint across South India and manages pricing, dispatch, receivables and international logistics.