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Buy-Back Agreement

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Buy-Back Agreement



  • Buy – Back Agreement is an agreement for 100% buy – back of your both Main Product i.e., Bio Diesel and BY – Product i.e., Crude Glycerol
    • The agreed price is Rs 3 per Ltr. (Bio-Diesel) profit over and above the cost.
  • Cost includes Purchase of Raw Materials plus Production Cost.
  • Minimum Rs. 3 /- is NET PROFIT (Transportation will be borne by us).


    Cost of Production

    • Includes PURCHASE OF RAW MATERIALS
    • Production Cost viz. Power, Transportation cost at the time of Purchase of raw materials, loading and unloading cost of raw materials, wages etc.
    • In order to avoid contradictory regarding arriving Cost of Production, we opted for following formula to arrive cost of Production.
    • Cost of Raw Material will be the Cost at we supply Raw Materials to our customers. i.e., prevailing cost of raw materials.
    • Plus Rs.3 /- per Lt as Production Cost (we will not consider actual cost). This will vary from time to time depending upon up-gradation of technology.
    • Present rate of Raw Materials (Prevailing Raw Material Cost)
    • Rs.3/- (at present estimated cost of production and this may vary from time to time by upgradation of technology
    • Present rate of Raw Materials (Prevailing Raw Material Cost)
    • Plus
    • Rs.3/- (at present estimated cost of production and this may vary from time to time by upgradation of technology)
    • Rs.3/- PROFIT


    Manufacturer has liberty to sell his Product even to others with due permission from our company.

    Advantage Of Buy-Back Agreement

    • The main Advantage of BUY-BACK AGREEMENT is Manufacturer will get updated Technology from time to time. Will get all, technical know – how of the complete process.
    • The entire BUY-BACK Agreement payouts is immediate payment and no Credits

    Contract Period

    The Minimum term of Agreement is ELEVEN YEARS.


    Formula

      RAW MATERIAL COST PER Kg + Rs. 3.50 to 4 Paisa Per ltr. As COST OF PRODUCTION + Rs.3/- per ltr. (ProfitMargin)

    Advantage Of Buy-Back Agreement

    • The main Advantage of BUY-BACK AGREEMENT is Manufacturer will get updated Technology from time to time. Will get all, technical know – how of the complete process.
    • The entire BUY-BACK Agreement payouts is immediate payment and no Credits

    Purpose Of Buy-Back Agreement

    • We have our own retail outlets across India and we require huge quantity of diesel. In order to bring ECO SYSTEM, we designed this beautiful SUPPLY CHAIN MANAGEMENT, where in all our people coming under our shelter will be benefited i.e., under win to win situation.

    JOIN HANDS IN OUR MISSION OF PRODUCING 10,0000 TON BIODIESEL PER DAY.


    Citizencare Biofuel Power Projects Private Limited