Group 1: Bhutan, Myanmar, Indonesia, Vietnam AASK Plaster Private Ltd. Group 1: Bhutan, Myanmar, Indonesia, Vietnam

Executive Summary Name: AASK Plaster Private Limited Logo: Address: Pemagatshel Dis South east of Bhutan, PO box: 141 Tell: 009.975321733/732 Fax: 009.975321796 Capital: 1,688,500 $ (40 % Loan, 60 % Equity) Land: 4 acres Promoters: Agni, Anh, Sonam, Khin Worker: 70 (30 mining, 20 factory, 20 officer)

Plaster of Paris

Gypsum - Water = Plaster of Paris (Calcium Sulphate) Plaster of Paris (PoP) Gypsum - Water = Plaster of Paris (Calcium Sulphate)

Products Use

General information History: Gypsum is chiefly utilized in the manufacture of ammonium sulphate fertilizer (NH4)2SO4, “Plaster of Paris”, distemper and cement. Gypsum --- Plaster of Paris Gypsum – PoP

Electricity tariff (cent/kwh) Comparison World Production (tones) Electricity tariff (cent/kwh)

AASK Plaster JSC market in %

AASK Plaster JSC Customers

Opportunities in Bhutan Largest gypsum deposit Cheap labor: $1/day (India) Cheap electricity cost: $0,030 (cheapest in Asia) Produced the finest material for Plaster of Paris

Organigram Chairman $1200 Mining Manager $ 1000 Workers (30) $ 30/month Factory Manager Workers (20) $ 30 – 50 /month Office Manager $1000 $ 100 - 200

Capital Investment

Production Programme - Plant Capacity: 4,000 MT/month (48000MTA) Working Hour: 8 hours a day initially - Capacity utilization: 60% 70% 80% Full capacity 1st year 2nd year 3rd year 4th year

Annual Cost - Utility Requirement NO DESCRIPTION QUANTITY COST ($) 1 Electric Power* 12,000,000 kwh 360,000 2 Fuel 900 litres 810 3 Water 450 m3 100 4 Gypsum 60,000 MT 135,000 TOTAL 495,910 *Thailand: Electricity Cost: $ 1,092,000 (0,091/kwh) Bhutan: Electricity Cost: 0,03/kwh (Source: Yangdon Pema, Modelling and Analysis of Competitive Electricity Market in Bhutan, Chalmer University of Technology, Goteberg: Sweden, 2009

Machineries NO DESCRIPTION QUANTITY COST ($) 1 Set of Machines (Kiln, Dryer, Crusher, Conveyor, Packaging machine) 800,000 2 Automobile (trucks, bus, earth moving machines) 11 279,000 TOTAL 1,079,000 * The cost is inclusive of duty. Insurance is not included however.

Cost of Production (monthly) Gypsum $ 6,700 Total cost/month Power $18,000 Pol $ 40.5 $ 27345.5 Water $ 5 Packaging $ 2600

Selling Price Quantity (kg) Selling price ($) Bhutan (15 %) India (35 %) Third countries (50 %) 100 0.8 1.25 2.25 50 1 1.5 2.5 20 2 3

SWOT Analysis STRENGTH -Dynamic Partners High quality product (Plaster of Paris) Cheap production cost (labor, power, etc) Large market share in Asian countries WEAKNESS New company New player in the global market OPPORTUNITIES Large gypsum deposit in Bhutan Cheap electricity Cheap labor THREATS MNC companies in Asian countries (e.g. India, Thailand, Indonesia)

Cash - flow Cash Sales: 40% Credit Sales: 60% (2months credit period) (US$K) Year 2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec   Project Actual Carry-forward from last month (A) 157,533 1465440 2776511 4088143 5400334 6713086 8026397 9340269 10654700 11969692 13285243 14601355 Cash 551,592 Receivables 827,388 Revenue (B) 1,378,980 1378980 Cost of products 27,345.50 24,740.50 Salaries 8560 Rents Installments 20,168 19,608 19,048 18,488 17,928 17,368 16,808 16,248 15,688 15,128 14,568 14,008 Others 15,000 Expenses (C) 71,073.50 67908.5 67348.5 66788.5 66228.5 65668.5 65108.5 64548.5 63988.5 63428.5 62868.5 62308.5 Carry-forward to next month (A+B-C) 1,465,440 2,776,511 4,088,143 5,400,334 6,713,086 8,026,397 9,340,269 10,654,700 11,969,692 13,285,243 14,601,355 15,918,026 Cash Sales: 40% Credit Sales: 60% (2months credit period) Interest rate 5% for 3 years payment

Project advantages Create employment Social benefits: 5% community development 5% conservation of environment Increase in GDP Tax revenue

References Brown, TJ, et. all, World Mineral Production: 2004 – 2008, Nottingham: British Geological Survey, 2010 Freedonia, Industry Study to 2009 – 2014, Study #1953, 2005 Lum, Jackson, Desk Study of the Re-Evaluation of the Potential of Gypsum Deposit on Malden Island - Kiribati, SOPAC Technical Report, Canada, 1996 Royal Government of Bhutan, Bhutan Water Policy, Thimpu: Bhutan, 2003 US Geological Survey, Mineral Commodity Summaries, 2007 US Department of the Interior and US Geological Survey, Mineral Yearbook 2006 – Area Reports, International, Asia and the Pacific, Volume III, 2006

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