COMMERCIAL PROPOSAL

FOR
GREENFIELD BREWERY PROJECT
PROCESS PLANT, CO2 & REFRIGERATION
FOR

PICCADILY AGRO INDUSTRIES LTD

INDRI, DISTT. KARNAL, HARYANA

CAPACITY: 300,000 HECTO LITERS PER ANNUM

EXPANDABLE TO 500,000 HECTO LITERS PER ANNUM
BY
PRAJ INDUSTRIES LIMITED
PUNE, INDIA.
www.praj.net
OFFER REF : BTI - TSM PAIL-PROCESS&UTILITIES-13-01,Rev 1
September 30th, 2013

BTI - TSM PAIL-PROCESS&UTILITIES-13- 01, Rev- 1

September 30th, 2013

CONTENTS
Annexure

Description

Price Schedule and Major Terms and Conditions of the Project

General Terms and Condition of the Project

Overall Project Investment

Proposal for 300,000 HLPA Brewery

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BTI - TSM PAIL-PROCESS&UTILITIES-13- 01, Rev- 1

September 30th, 2013

ANNEXURE I: PRICE SCHEDULE & MAJOR TERMS & CONDITIONS OF THE PROJECT:
I.01

PRICE SCHEDULE (PRAJ & PACECON)

Our price for Design, Engineering, Manufacturing, Procurement & Supply for the scope of work as
mentioned in ANNEXURE D of our Technical proposal (BTI - TSM PSALIL-PROCESS& UTILITIES-13-01,
th
Rev- 1, September 30 , 2013) and based on prevailing raw material rates and present duty structure is
as mentioned below :

(Scope is as mentioned within in the specified battery limits)

1 PROCESS BLOCK :

All figures in Rupees Lakhs

Description

Price

1 A Brew House 200 hl (Lauter Tune based)

Wort Treatment Section ,
Brewing Water Section (Hot Water , Cold Water , Chilled Water),
Yeast Propagation & Storage Section with Yeast Pitching System,
Fermentation & Lagering Section,
Beer Filtration Plant
Bright Beer Tank Section
CIP Section,
Inter Connection Piping , Electrical , Instrumentation and Automation for the above
Scope of Supply
1 B Erection (by Pacecon Engineering Projects Limited) for above scope of Supply.
1 C Packing, Transportation, Transit Insurance for above scope of supply

:
:

SUB TOTAL ( 1 )

2610.00

207.00
198.00

: 3015.00

2 PART PROCESS UTILITIES :

Description

All figures in Rupees Lakhs

Price

2 A Refrigeration Plant ,
CO2 Recovery Plant,
Instrument Air Compressor with Air tubing
Interconnection Piping, Electrical, Instrumentation & Automation for above Scope
2 B Erection by Pacecon Engineering Projects Limited for above scope of supply.

2 C Packing , Transportation, Transit Insurance for above scope of supply

SUB TOTAL ( 2 )

612.00
:

51.00
30.00

: 693.00

3 MALT STORAGE , HANDLING & MILLING, ADJUNCT PNEUMATIC

HANDLING
All figures in Rupees Lakhs
Description

Price

3 A Malt Storage , Handling & Milling, Adjunct Pneumatic Handling

Electrical , Instrumentation And Automation For The Above Scope Of Supply
3 B Erection By Pacecon Engineering Projects Limited For Above Scope Of Supply.

3 C Packing ,Transportation , Transit Insurance for above scope of supply

SUB TOTAL ( 3 )

Proposal for 300,000 HLPA Brewery

180.00
18.00
18.00

: 216.00

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BTI - TSM PAIL-PROCESS&UTILITIES-13- 01, Rev- 1

September 30th, 2013

4 Estimated Taxes & Duties (For above scope only)

NOTE

: 450.00

The above price includes the Supply, Design, and Engineering by Praj Industries Limited and Site
Erection by Pacecon Engineering Projects Limited.
The above Process Block Price is FOR Site basis includes Packing Charges & Freight & Transportation
and Transit Insurance Charges. The above Price however excludes all Taxes & duties (Excise Duty, CST,
Import duty, Service Tax, entry tax, local taxes , Labour Tax if any etc.), Site Accommodation, Site
Transport.
The Above Price does not include Electrical ( Transformer, PCC , PCC to MCC , DG Set , Earthing , Yard
Lighting),Boiler , Effluent Treatment Plant , Water Treatment Plant , Interconnection Piping for steam
water & Effluent ,Laboratory Equipment, Bottling Line , Civil Works .
Further, the Price mentioned above is subject to Battery Limits, List of Exclusions from PRAJ scope,
Major & General Terms & Conditions, as enclosed herewith

For PRAJ INDUSTRIES LTD.

HIMANSHU TANEJA
GENERAL MANAGER BUSINESS DEVELOPMENT

Proposal for 300,000 HLPA Brewery

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BTI - TSM PAIL-PROCESS&UTILITIES-13- 01, Rev- 1

September 30th, 2013

I.02

MAJOR TERMS & CONDITIONS OF THE PROJECT.

The order will be binding on us on acceptance in writing by an authorized official of PRAJ.

The above Price is on FOR SITE BASIS INCLUDES Packing Charges & Freight & Transportation
and Transit Insurance Charges.

The above prices DOES NOT INCLUDE :

I.03

Taxes & duties on Bought outs, raw material, Manufacturing Items.

Octori duty/Entry Tax or other similar levies to be paid to local Municipal / State
authorities at the destination, if applicable.

All such levies and single point taxes and duties of various items will be either paid by the
Purchasers directly or will be reimbursed to us at actual.

Any other statutory obligation including but not limited to taxes, duties or other levies
which may become payable at any time, including those which may become payable
retrospectively even after the fulfillment of the contract, due to change in present laws
or due to reinterpretation of existing or future laws, will be to Purchasers account.
Purchaser will either pay such duties directly, whenever a claim is made or will
immediately reimburse the same to us at actual, if we are called upon to pay these.

PRAJ PAYMENT TERMS & CONDITIONS OF THE PROJECT.

30% of the value of the order as initial advance along with Technically and Commercially
clear order / signing of the contract

15% of the value of the order as second advance on submission of Equipment Layout,
Equipment Civil Load data drawing for major equipment / system.

55% of the value of the order on pro-rata basis as per the billing break- up, along with taxes
and duties in full, against Proforma Invoice prior to dispatch.

PRAJ will submit performance corporate guarantee for the Process plant along with last major
dispatch for equivalent of 5 % of the order value of the process plant valid till 12 months from
the date of Commissioning OR 15 months from the date of last major supply, whichever is
earlier
In case the Commissioning and Performance Acceptance Tests are delayed beyond four weeks
from the date of Mechanical Completion due to reasons beyond PRAJs control, Client shall
release Praj from all their obligations and responsibilities.

PACECON ENGINEERING PAYMENT TERMS :

a) 30% advance along with Purchase.
b) 70% on submission of bills for completion of work
c) PACECON will submit Performance Corporate Guarantee along with First despatch for
equivalent of 5 % of the order value valid till Performance Acceptance Tests or Three
months from the date of cold Commissioning (water Trials) or Six months from the date
of last major supply, whichever is earlier.

Proposal for 300,000 HLPA Brewery

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September 30th, 2013

I.04

I.05

MODE OF PAYMENT.
All Payments shall be made through Demand Draft/at PAR Cheque/RTGS payable at Pune. All
Bank charges will be borne by Client.

DELIVERY

PRAJ shall be delivering and commissioning the plant and machinery offered vide above, in
such way they are ready for commissioning within 360 days from the Zero date.

Detailed Bar Chart Would be submitted in due course.

Delivery Schedule for Erection and Commissioning of Various sections as per the detailed
scope of supply is mentioned as below.
Days from the date of receipt of
advance
360 Days

Days from the readiness of

Civil / Structural work.

Days from the readiness of all

UTILITIES up to Battery Limits
as defined.

240 Days
Whichever is later

150 Days

A grace period of @ 10 days is to be considered for any unforeseen delays

The 0 date is the date of receipt of first Full advance as agreed.

The completion schedule mentioned above will also subject to:

I.06

Timely release of payment as mentioned above

Statutory clearance being available well in time.

As in Force Majeure clause & Any approvals by CLIENT well in time

Completion of Civil activities by CLIENT as discussed & agreed

Completion of works under CLIENT Scope in appropriate times.

Availability of Raw material at the project site in time

Delay in release of dispatch clearance or hold up of work due to CLIENTS specific

Instruction or lack of instruction.

PRICE BASIS

The above Price is worked out based on following,

Prevailing raw material prices any erratic behavior in the raw material prices during
execution of the project shall be to Purchasers account

Prevailing foreign exchange rates and the Price variation due to the foreign exchange
rates will be to purchasers account

PREVAILING EXCISE DUTY AND SALES TAX STRUCTURE

Any variation in the duty structure shall be to Purchasers account.

Proposal for 300,000 HLPA Brewery

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September 30th, 2013

I .07

I.08

I.09

Present duty structure is

Excise duty
CST against form C
Service Tax

:
:
:

12.36%
2.0 %
12.36%

PREVAILING IMPORT DUTY AND CUSTOMS DUTY STRUCTURE.

Any variation in the duty structure shall be to Purchasers account.
7.5%
:
Basic Import duty
10.3 %
:
Countervailing duty
4.0%
:
Special Additional duty
CHANGE IN SCOPE
During the execution of the Project, if Purchaser asks for change /
Modifications/additions to equipment/system as listed under scope of supply, PRAJ
shall agree to provide for such changes / modifications / additions subject to upward
revision in PRICE and delivery, to be mutually discussed and agreed upon between
Purchaser and PRAJ.
INSPECTION CHARGES

All inspection charges of the third party inspection agency shall be borne by Purchaser.

Charges towards any special requirement of testing/inspection or hardware for

inspection as desired by the third party, other than Praj Standard Quality Plan shall be
borne by Purchaser.

OTHER TERMS & CONDITIONS

Other Terms and Conditions will be subject to mutual discussions and confirmation
thereafter, in writing by us.

For PRAJ INDUSTRIES LTD.

HIMANSHU TANEJA
GENERAL MANAGER BUSINESS DEVELOPMENT

Proposal for 300,000 HLPA Brewery

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BTI - TSM PAIL-PROCESS&UTILITIES-13- 01, Rev- 1

September 30th, 2013

ANNEXURE J: GENERAL TERMS AND CONDITIONS

J.01

EXCESS MATERIAL:

Since, we as a matter of common practice, dispatch to the site a number of spare /

additional materials in the interest of a smooth and uninterrupted completion of work, all
unused items will be our property and will be removed by us from the site after completion
of such required site activities.

Should the purchaser desire to retain any of these items for his future use, we shall
consider selling them to him at mutually agreed prices against immediate payment.

J.02

WAREHOUSING CHARGES:

In the event, the equipment/components which are ready at your works or your subcontractors/vendors, cannot be dispatched for reasons attributable to us, we shall pay to
you the warehousing charges at the rate of 2% per month of the value of these
equipment for such undelivered equipment/components.

We will also release proportionate payment due against such supplies to you.

J.03

TAKING OVER

You shall take over the plant and machinery supplied by us after satisfactory performance
trials and duly releases us from our liabilities.

In case you are unable to undertake the performance trials 180 days, after the completion of
supplies of equipment, due to reasons attributable to you, then the plant shall be deemed to
have been taken over by you and we shall be duly released from our liabilities under the
Purchase order.

J.04

GENERAL LIEN

We shall have general lien on the plant and machinery supplied to the extent of payment
due to you under this Purchase order.

No part of the plant and machinery will be put to commercial use by us till all the payments
are released to us.

J.05

LIABILITY TOWARDS CONSEQUENTIAL LOSS

Either party shall not under any circumstances or at any time be liable to the other under or
in connection with this Agreement or in tort of any special ;or any direct or indirect,
including for example, ;but without limiting the generality of the foregoing, loss of profits,
loss of production, reduced production or loss of contracts.

Proposal for 300,000 HLPA Brewery

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September 30th, 2013

J.06

FORCE MAJEURE

J.07

In the event of any force majeure circumstances affecting the ability of either party to
perform in accordance with this Purchase order for extended periods of time exceeding 2
weeks, the parties hereto shall meet and jointly decide the future course of action.

WAIVER

J.08

No waiver by either party of any default by the other in the strict and literal performance of
compliance with any provision, condition or requirement of this Agreement shall be deemed
to be a waiver of strict, literal performance of and compliance with any other provision,
condition or requirement hereof, not to be waiver of or in any manner release such other
party from strict compliance with any provisions, condition or requirement in future; nor
shall any delay or omission of either party to exercise any right under this agreement in any
manner impair the exercise of any such right accruing to it thereafter.

WARRANTY

The liability in respect of any defect in or failure of plant and machinery supplied by you or in
respect of any loss, injury or damage attributable thereto, is limited to making good by
replacement or repairs, defects which under proper use appear therein, provided the
equipment and machinery are operated and maintained in accordance with your norms and
instructions, and arise totally from proved faulty design or defective materials or
workmanship, within a period of 12 months from the date of commissioning or 18 months
from the date of readiness of material, whichever is earlier.

The warranty is applicable under the following conditions,

Any replacement / repairs required to be made under the provisions of this warranty
will be carried out by you, at your option, either at site or at you / your suppliers /
contractors Works.

In the latter case, we shall arrange to promptly return the defective parts to you, cost
for such transportation will be borne by you

After repairs / replacement, the period of warranty for the entire plant and machinery
including replaced / repaired parts will limit itself to the unexpired portion of the total
warranty period

In respect of the material where dispatch after readiness is delayed due to specific
instructions or lack of instructions from us, the warranty will be limited to 18 months
from the date of readiness for dispatch of material as notified by you

No repairs or replacement unless authorized by you in writing, will be carried out by any
other party on your scope of supply of equipment, plant and machinery during the
warranty period.

The warranty does not cover the following,

Normal wear and tear, corrosion, willful damages especially of components like rotating
equipment, electrical, instruments, switchgears etc.

Proposal for 300,000 HLPA Brewery

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September 30th, 2013

J.09

Damages / defects arising out of accidents and / or mal-operation of the plant by you.

Alterations/changes arising out of accidents and/or mal-operation of the plant by you.

ARBITRATION

J.10

All disputes or differences whatsoever arising between the parties out of or relating to the
wordings, meaning and effect of this Purchase order or breach thereof shall be settled by
arbitration in accordance with the Indian Arbitration Act viz. Alternate Dispute Redressal Act
1997, within the framework of Indian Contract Laws. The venue of the arbitration shall at
Pune.

PATENTS AND COPYRIGHTS

We shall protect You from any suit filed or injunction moved against Us by any third
party for any alleged infringement or violation of patent or copyright with respect to the
scope of supplies in the PO / Agreement and during the performance of this PO/Agreement.

We shall indemnify You against any costs incurred by You towards defending any such
allegation made, suit filed or injunction moved.

J.11

SECRECY AND CONFIDENTIALITY

Submission of any drawings and /or designs is not to be considered as transfer of know-how
on a general basis.

Any data, technical information, designs, drawings, process know-how and other such
documentation pertaining to design, manufacture, operation and maintenance of the plant
and machinery, which we may discuss and / or elaborate and / or handover to you or your
CONSULTANTS or OFFICIALS from time to time, are of proprietary nature and are to be kept
confidential by you or your Consultants/ Officials.

You shall ensure that the information as above is made available only on a need to know
basis and is not shared or distributed beyond its Board room or with such personnel of us
unless absolutely necessary.

You or your Consultants shall neither disclose such data, technical information, designs,
drawings, process know-how, and other such documentation to any other third party nor
use it for any other purpose other than its intended use (including duplicating the
equipment, plant and machinery and process), without the written permission from Us

You shall seek and acquire from your staff and directors an undertaking in advance to our
satisfaction as to the non-disclosure and duplication of the above information, designs,
drawings, technology, etc.

However, this article shall not preclude the necessity of sharing the relevant information
with your contractors on a case to case basis

Proposal for 300,000 HLPA Brewery

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September 30th, 2013

J.12

In the unlikely event of CANCELLATION / PREMATURE TERMINATION of your Purchase

Order on us , all data, technical information, designs, drawings, process know-how and other
such documentation provided by us to you / your consultants, shall be our property and
shall be returned by you to us

GOVERNING LAWS

This Purchase order shall be construed and the legal relationship between the parties hereto
shall be determined including the interpretation of the provisions herein in accordance with
the relevant Laws of India..

All the court proceedings should be initiated in the Courts of Pune

J.13

PREMATURE TERMINATION

It is the expressed intention of both the parties to this Agreement to perform in accordance
with this Agreement.

Neither party shall unilaterally terminate this Agreement in any event.

However, either party may request for a premature termination by giving at least 8 weeks
notice in writing and explaining the reasons thereof

Both parties shall thereupon discuss and if they mutually agree to the motion and the terms
and conditions of this motion, the Agreement shall stand terminated after both parties have
satisfied these terms and conditions to the fullest extent.

In the event of no mutual understanding reached by the parties, the Agreement will be
referred to arbitration

J.14

OTHER TERMS AND CONDITIONS

Other Terms and Conditions will be subject to mutual discussions and confirmation
thereafter, in writing by us.

For PRAJ INDUSTRIES LTD.

HIMANSHU TANEJA
GENERAL MANAGER BUSINESS DEVELOPMENT

Proposal for 300,000 HLPA Brewery

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September 30th, 2013

ANNEXURE K: ESTIMATED OVERALL PROJECT INVESTMENT

Sr
No

Description

1.

4374.00

2.

Process Plant , CO2 Recovery , Refrigeration & Air Compressor

sections
Boiler With Accessories 10 TPH

3.

Effluent Treatment Plant

180.00

4.

Water Treatment, Bore well,

180.00

5.

Integration Piping for Steam ,Water & Effluent

135.00

6.

Laboratory Equipment

180.00

7.

Bottling Line (Indigenous /Imported Make)

1350.00

8.

Canning Line (Imported)

1200.00

9.

Civil Works & MS Structural Works

1800.00

10.

250.00

11.

Electricals, Transformer, PCC Panel, PCC Cabling, DG Set,

Earthing, Day Oil Storage for DG Set , Plant & Yard Lighting
Workshop & Fire fighting

12.

Land & Land Development

600.00

Estimated Overall Investment (INR Lakhs)

(INR LAKHS)

330.00

120.00

10699.00

Note: Add Interest Cost during Construction, Working Capital Margin, Pre-operative
Expenses, and Salaries during construction, etc. to arrive at Overall Project Investment.

Proposal for 300,000 HLPA Brewery

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