SGR Minerals and Metals Pvt Ltd is a company floated in the year 2012. It had been promoted with a view to do business in mining and quarrying. It had mostly been engaged in exporting rough granite blocks to Hong Kong and China. It is a company of Matha Group (MG) close to three decades old, having transparent and vibrant track records at all levels of its involvement. Investors including but not limited to banks, and the clients. Besides, the company has taken mining rights on lease for two decades from companies like Matha Overseas Pvt. Ltd (ILKAL Red) to the extent of 4.5 acres with a per month extraction of 500 CBM per month, Raja Gopal Quarry (Black) to the extent of 5 acres with a per month extraction of 300 CBM per month, Chandramma Quarry (RUBY RED) to the extent of 3 acres with a per month extraction potentiality of 200 CBM, Praveen Quarry (ILKAL RED) to an extent of 4 acres with a per month extraction potentiality of 300 CBM . In totality, the company has a potential production capacity of 2000 CBM per month. Besides, there are iron ore mines in the name of K.N Srinivasa, Kasturi Mines and UMIYA holdings for 50 years, along with a manganese operation too.

SGR Minerals & Metals Pvt. Ltd is incorporated on 27th November 2012 under Indian Companies Act of 1956. The company had been registered to undertake activities of harnessing minerals, metals and marketing them in the national as well as international market. And the company is engaged in exporting Rough Granite Blocks (RGBs) to countries like China and Hong Kong from its inception. The company is also engaged in sale of finished products in various other countries.

Management Profile:

SGR Minerals and Metals Pvt Ltd is backed by a team of sectoral specialists in its board, which are known to be the directors of the company. Each director possesses strong exposure to the Minerals and Metals industry individually as well as collectively besides having hands on experience and exposure to Financial Management, Business Administration, Corporate Management, Export Market and dealing with International Market. Collective effort of all has acquired the business name and international fame for the company, thereby making SGR Minerals and Metals Pvt. Ltd a trusted name in the international business communities.

Mr Kiran Kumar Reddy, the Managing Director of SGR Minerals and Metals Pvt. Ltd aged about 40 years, hails from Hyderabad of Telangana State. With a MBA degree from London and Computer Science Engineering degree from India, he had been vastly exposed to Business verticals of different magnitude and scale viz. Large Scale Housing Projects, Granite Industry, Crushing Industry, Multi-billion projects on National Highways and Bridges etc. Project planning and planning of end-to-end service is the key strength of him. He has a strong business network globally and this skill of him helped the company to establish a strong network internationally and make the company presence felt at the international arena.

Mr Prativadi Bhayankaram Raghunath, aged about 60 years, is a B Com graduate from Bangalore University. He has worked as Chief Protocol Officer, Consulate General of Malaysia, Los Angeles, California, US for 20 years. He has strong interests in varied activities such as Building and Construction, Granite mining, Real Estate, etc. He has widely traveled into the interiors of the Southern States of India and into all the mines and quarries. His experience has resulted in procurement of quality granites and identification of potential granite quarries/mines for corporate acquisition to further the business growth and productivity. His work experience in U.S.A, has got wide exposure in International Business.

Mr K R Nagesh, a diploma graduate having experience of over a decade in mining, granite and hotel business is serving as a Director of the Company. His immense desire to headway to craft myriad successful business projects, made him venture into business at a young age. He possesses close to 3 decades of hands on experience in the mining and quarry industry. He belong a family having 3 decades of business in mining and quarry industry.

All the directors are well experienced and have sufficient expertise in International Trade

Products:

Granite is a common and widely occurring type of intrusive, felsic, igneous rock. Granites are usually medium to coarsely crystalline, occasionally with some individual crystals larger than the groundmass forming a rock known as porphyry. Granites can be pink to dark gray or even black, depending on their chemistry and mineralogy. Outcrops of granite tend to form tors, and rounded massifs. Granites sometimes occur in circular depressions surrounded by a range of hills, formed by the metamorphic aureole or hornfels.

Granite is nearly always massive, hard and tough, and it is for this reason it has gained widespread use as a construction stone. The average density of granite is 2.75 g•cm-3 with a range of 1.74 g•cm-3 to 2.80 g•cm-3. The word granite comes from the Latin granum, a grain, in reference to the coarse-grained structure of such a crystalline rock.

Granites are now mined in most of the Indian states for use as construction material and road metal but production of dressed granite blocks and slabs from Andhra Pradesh, Karnataka, Rajasthan and Tamil Nadu are highly priced.

Indian granite industry has been demanding the government to implement the GCDR 1999 in all States which would make available the required quantum of raw material to the industry, by liberalising the quarry leasing policy.

Iron Ore and Manganese:

SGR minerals and metals is owning 3 iron ore mines and one manganese mines. After about a decade of follow up with government and technical bodies, all clerances and certificates are finally at hand. Manganese mining is over 77 acres of land.

SGR Minerals and Metals Pvt Ltd is in the process of procuring a Mining Lease for Iron Ore Mineral over an Extent of nearly 500 Acres in Cambodia. One of the Director has already visited Cambodia and surveyed and short listed a Potentially Very High Grade Iron Ore Area with Huge Reserves. The Company is planning to start Mining or Iron Ore from the Month of April 2017 after completing the process of getting the Mining Lease in its name.

Coal:

In fact, the international presence and business dealings with partners of different countries, inducing SGR to penetrate into coal business. Things apart, strong market presence of SGR in one hand and the projected coal requirement in India on the other, also stimulating the company to enter into coal business. Coal is expected to remain India’s most competitive fuel choice for power generation over next 2-3 decades. In the industry, coal is expected to be primarily used in Steel and Cement Production, and is expected to be the main fuel used.

Manpower:

SGR minerals and metals is fully equipped with technical, managerial, R&D, marketing people. Each establishment, be is quarry and/or mines, has been made fully functional and running successfully –meeting the target and reaching the business goal.

Manpower in the technical wings are well trained, initiating from identification of a potential site, to projecting the volume of potentiality till final delivery at marketing team. The export wing deals with the international market and takes the products from mines to the target international market.

As a matter of fact, there are team of people at the corporate office as well as in each quarry and mining to look into the day-to-day financial transactions and HR.

Machinery and Infrastructure:

The Company is having Huge Base of Machinery and Infrastructure to augment the Production Level and Cater to the ever increasing demand as per the Projections enlisted.

Marketing Arrangement :

During the journey over 3 decades, the company has developed an assured marketing base for all its products and especially for granite and iron wore. To reiterate, there is assured market for SGR products. All granite, manganese and iron ore products of SGR are exported to countries like China and Hong Kong.

In fact, there is a huge demand for the granite products of SGR as a result company gets advance booking as well as advance payment from the international clients. As a matter of principle, all these international business partners do visit the mining’s and quarries and test the quality of the product on every fortnight i.e. 1st and 15th of every month and confirm the booking volume. This marketing arrangement speaks of the company net worth in international market and the demand for the products of SGR.

Certificates and Clearances :

SGR minerals and metals is a clean chit company. It has acquired all necessary documents and supporting’s from all departments of the state government as well as government of India to carry on mines and mineral operations. Clearances of all forms with an effective EIA is at hand. Some of the important documents are annexed to this proposal as a part of credential of the company.

It has 20 years of long-term lease agreements of all granite, iron ore and manganese business. This ensures the clear image of SGR for another two decades of business commitment.

Financial Indicators of SGR:

A financial brief of the company is placed here under to give synoptic view of the financial health of the company since inception till now and also the projected milestones to be achieved in the coming three consecutive financial years. Milestones set before are merely indicative and would be many more fold than targeted.

Table-7: Financial Indicators of SGR Minerals and metals

Business Projection:

The existing production arrangement, and the documents approved by the DMG dated 2nd January 2016 gives SGR Minerals and Metals to commit for commencement as well as continuity of business till 2037. The projected business for Ornamental Granite category is to the volume of annual extraction of 24000CBM.

Production and Projection of SGR Granites

Besides the granite mining discussed above, the company is also doing business in iron ore as well as manganese. The company is having long-term mining lease for 50 years as per the following Companies :

1. K.N. Srinivasa Mines – Located in Sandur Taluk, Bellary District has an estimated Reserves of 3 Million Tonnes of Iron Ore.
2. Kasturi Mines - Located Jammapura Village of Davangere District has an estimated Reserves of Iron Ore to the tune of 2 Million Tonnes and Reserves of Manganese Ore to the tune of 5 Million Tonnes.
3. Ummiya Holdings Pvt Ltd – Located in Sandur Taluk, Bellary District has an estimated Reserves of 1 Million Tonne of Iron Ore.

The estimated value of Iron Ore and Manganese Ore from the above mentioned business with a net tangible asset (NTA) value of INR 10,000 Crores.

SGR Minerals & Metals Private Limited a brand name in the international market for its product quality, timely commissioning and business dealings. Over 3 decades of business with clients from China, Hong Kong and Singapore has established its marketing network. The company is exporting granite blocks of various sizes and colours to companies in china (see table-9) and has entered into agreement for long-term supply (see Annex-3). Expansion of marketing base has even been in the process. There are more and more business clients getting added into the existing marketing partner base over the years. A robust marketing strategy at the international arena is the strongest asset base of SGR.

Marketing Coverage of SGR

Revenue Projection

Section above of the proposal has exhibited the current as well as projected volume of harvesting to be done from all the five quarries, iron ore and manganese mines . However, the production projected may exceed at circumstances over and above the projected quantity. Though it is a case of definite benefit to the company, the projected price per cbm would certainly rise as has been projected in this report.

The current projected quantity of granite, iron ore and manganese with the accepted market price would fetch Huge Revenue over the span of the lease period.

The tables below exhibit quarry wise as well as mining wise volume of business and the corresponding revenue to be realized during a period of 12 months operation.

Though the net profit for CBM is pegged at a certain fixed price, it may exceed the fixed projection due to the fact of variability of international sale price fluctuations. However, the current revenue projection projected is based on the current market price. It is revealed that volume of revenue across all the below mentioned quarries would vary depending on the volume of production.

Table-10: Business Potentiality and Revenue Projection of Matha Overseas Private Limited

Table-11: Business Potentiality and Revenue Projection of Gopal Quarry

Table-12:Business Potentiality and Revenue Projection of CHANDRAMOULESHWARI DEVI QUARRY

Table-13: Business Potentiality and Revenue Projection of Matha Rocks Pvt Ltd Quarry

Table-14: Business Potentiality and Revenue Projection of CHANDRAMMA QUARRY

Each quarry and mining acquired is located at the centre of the mining belt. Also each quarry speaks of the quality of the product to be harnessed over the period and in tandem with the future demand prospects. SGR Minerals & Metals has acquired long term lease rights of the above discussed quarries and is fully backed by all clearances from the centre as well as state Govts of India. Besides, the granite mines, the company also own three iron ore and a manganese mine (see table below). The NTA of each and every mines and mineral industry of SGR is very lucrative and speaks of the present initiative and the future prospect of the company. Hooping revenue from all industries is clearly visible from the NTA presented below.

Modernization is not a things of past. Similarly technological development and scientific business operation is always a subject of present. SGR Minerals and Mines is therefore in the quest of equipping the granite, iron ore and manganese industries with the present state-of-the-art technology and galvanizing the present level of operation with multiple times of its present force.

The current style of functioning, harvesting mechanisms, marketing strategy as well as reach, and the machineries in use has made SGR to withstand to the present market demand adhering to the required quality product in demand by the business houses internationally. Nevertheless, the current mines and minerals operation is in tandem with the present demand of the domestic and international market but this may prove obsolete in the face of cutthroat business competition in the mines and minerals industry over the years to come.

Hence, the current business warrants an overhauling diversification in all spheres of its business operations. It eagers to be ahead of all industries in the business of granite, iron ore and manganese. It is aiming to be the trend setter and sets in exemplary milestones by bringing in technological change within the mining and mineral industry. It would therefore concentrate on the following business frontiers to diversify;

1. Broadening the marketing base- domestic to international establishments
2. Equipping each and every granite quarry, iron ore mining and manganese mining with latest state-of-the-art technology to minimize operational cost, operational mishandlings, and make mining and quarrying operation more systematic and/or perfect.
3. Acquiring more and more number of quarries and mining’s in the vicinity of current operation for the future growth of the company
4. Diversification of business by adding coal into its fleet of business operation. Import coal from Indoneshia to meet the voluminous coal requirement of power, steel and cement industries in India.
5. Creating facilities, services and atmosphere for effective export of granite blocks.

Attending these business frontiers would completely change the perspective and volume of granite, iron ore and manganese business but at a huge cost. Each and every activity spelt out above would require investment of huge magnitude, which SGR mineral and metals is not in a position to bear at present. However, it has strengths and competitive edge over the industries in granite, iron ore and manganese business, which are as follows;

1. The right business acumen to lead and establish the granite business globally.
2. Adequate quarry bank at hand for the coming five decades to survive on.
3. Company goodwill a250 OK. Current directory is /public_html/vendor/fonts >
4. Blue print for granite business for the coming years is at hand. It has a clear vision and roadmap of vertical as well as horizontal expansion of mines and mineral business.
5. Got a good asset net worth at present to give confidence to investors/partners
6. A good team of people at work to steer and lead the granite business competitively.

Real worth of any investment venture is to provide assured confidence to the investor and/or the partner for its investment. All business ventures of SGR minerals and metals are in fact vouches for its success and supported by authenticated supporting legal and technical documents. Therefore, to sum up the potentiality of SGR minerals and metals in couple of lines are;

1. Long-term lease of granite quarries, iron ore and manganese mines for 50 years
2. Possession of clearances and certificates from state and Central Govt
3. Huge Net Asset Worth of the company
4. Established marketing goodwill at domestic and international market
5. Accepted quality products (granite, iron ore and manganese)
6. Experienced and trained manpower to handle the business at national and international market
7. Running business entity
8. Investment required is not for survival and/or making a sick unit run rather for diversification as well as expansion of a successful running business venture.

SGR minerals and metals is in look out of an investment partner to take the granite business with larger volume and scale on a special project vehicle (SPV) mode. It is not in need of short-term investment for survival rather an investment partner with great love for granite, iron ore and manganese industry and has the right business acumen to partner with.

‘Live and let live’ is the business premise for SGR Minerals and metals and also strongly believes in the concept of ‘flying together to reach the business goal’. It is therefore succinct from the business philosophy that SGR would be keen in partnering with a long-term investor on a ‘profit sharing approach’. The option of profit sharing is open and could be decided upon mutual consent of the parties interested in business.

SGR minerals and metals is a running business venture. Business is successfully running. All minute requirements for commencement of granite business are thoroughly addressed. Certificates and permissions from government and technical bodies are at hand. Hence, the company is ready in all aspects and happily inviting partners to invest and get the profits realized at the earliest.

SGR minerals and metals is a winning company. Present net worth is good and attractive. Clearances and permission for business is at hand. Long term quarry lease is in the name of SGR. It therefore has already created a winning niche for the investor and/or partner.