01

Company Profile

Legal NameThe Skate Limited (TSL)
Core ModelMunicipal waste–to–bio-compost social business and circular economy model
Institutional Basis20-year PPP (Public-Private Partnership) with Jashore Municipality
B2B PartnerACI Fertilizer Ltd.
Core FeedstockDaily municipal waste and legacy landfill waste
Operating LocationJashore, Bangladesh
HeadquartersDhaka, Bangladesh
TSL's operating model is closely linked to the principles of the circular economy. Rather than treating waste as a terminal disposal problem, TSL treats waste as a recoverable resource stream — generating commercial output while creating environmental and social benefits.

The Circular Economy Model

🏙️ Municipal Solid Waste Jashore Municipality 🔄 Collection & Segregation Organic / Recyclable ⚙️ Bio-compost Processing 600 Tons/Month Target 🌿 Organic Bio-Compost BDT 6,000/ton 🌾 Agricultural Application ~9,000 ha farmland ↩ Circular Nutrient Return — Improved Soil Health → Reduced Chemical Fertilizer Need ♻️ Recyclable Recovery ↗ value recovery
02–03

Business Background & Company Introduction

The Skate Limited (TSL) operates a circular waste processing business in Jashore that converts municipal waste into commercially usable products, with a primary focus on organic bio-compost. The company's business model is built on the recovery of value from waste streams that would otherwise remain underutilized or continue to create long-term environmental pressure.

This model is commercially significant because it turns a municipal waste challenge into a productive economic activity. At the same time, it is environmentally relevant because it promotes the beneficial use of biodegradable waste rather than allowing it to accumulate as an unmanaged burden.

Since its establishment, TSL has been engaged in transforming municipal and legacy waste into valuable resources through environmentally responsible processing methods. With practical experience in working alongside municipalities and development partners, TSL has developed operational capabilities in waste collection, segregation, processing, and value recovery.

The company's integrated approach combines waste management with resource generation, particularly through the production of bio-compost and recovery of recyclable materials.

Core Business Focus

🌱
Primary Output
Bio-Compost
From municipal & legacy landfill waste
♻️
Waste Processing
Segregation
Organic fractions & recyclable recovery
🤝
Institutional Anchor
20-Yr PPP
Jashore Municipality partnership
🏭
B2B Distribution
ACI Fertilizer
Established agricultural distribution channel
04

Operations & Capacity Overview

TSL's current operations are centered on the collection, handling, segregation, and processing of waste materials, particularly the organic fractions suitable for compost production. The company works to recover biodegradable content from municipal waste and legacy waste deposits.

Operational Process Flow

① Waste Collection Daily municipal input ② Sorting & Segregation Organic vs. recyclable ③ Processing & Composting Biodegradable conversion ④ Quality & Packaging Product finishing ⑤ Distribution & Sales ACI Fertilizer channel 🌾 Farm Application End value Target: 600 Tons/Month → 7,200 Tons/Year at Full Scale

Current Constraints & Financing Impact

⚠️
Current Constraint
~3,600 T/Yr
Limited by equipment & working capital shortage
🔧
Post-CapEx (Year 1)
4,800 T/Yr
After equipment installation & setup
✅
Full Scale (Year 2+)
7,200 T/Yr
With full working capital support in place
05–06

Loan Purpose & Utilization

The purpose of the proposed sustainability loan is to strengthen TSL's production capability and operating capacity so that the company can scale its circular waste processing and bio-compost production activities in a financially disciplined and operationally effective manner.

Loan Allocation
BDT 1,50,00,000 Total Facility
Capital Expenditure
BDT 50 Lakh
Production-related machinery, equipment, and capacity enhancement. Strengthens physical processing base, improves throughput, reduces bottlenecks.
Working Capital
BDT 1.00 Crore
Labor, fuel, logistics, maintenance, packaging, transport, material movement & all day-to-day operating expenses for uninterrupted production.

Proposed Financing Terms

Loan Amount
BDT 1.50 Cr
Sustainability loan
Interest Rate
5% p.a.
Per annum
Loan Term
8 Years
Total tenure
Grace Period
12 Months
Interest only
Repayment
Bank Schedule
Post-grace period
07

Impact of the Proposed Investment

BDT 1.50 Cr Sustainability Loan Jamuna Bank PLC CapEx: BDT 50L Equipment & Assets WorkCap: BDT 1Cr Operations & Liquidity ⚡ Capacity 600 T/Month Immediate scale-up 📈 Revenue Growth BDT 3.31Cr (Yr1) → 6.66Cr (Yr7) 💰 Strong DSCR 3.05× (Yr1) → 7.73× (Yr9) 🌍 Env. Impact 3,000–9,600 t CO₂e/yr saved
08

Market Opportunity

TSL's market opportunity is anchored in the growing need for effective waste management solutions and the rising demand for sustainable agricultural inputs in Bangladesh. The company operates at the intersection of two important and expanding needs: waste valorization and organic soil input supply.

🗑️
Waste Management Demand
Municipalities across Bangladesh face mounting pressure from increasing waste generation and limited disposal capacity. Jashore's daily waste generation provides a continuous, reliable raw material stream for TSL.
🌾
Organic Agriculture Inputs
Bangladesh's agriculture sector is increasingly seeking alternatives to chemical fertilizers. Soil degradation and chemical over-dependence create strong demand for organic bio-compost as a sustainable soil input.
🔁
Circular Resource Recovery
TSL's circular model creates value from recyclable fractions beyond compost—delivering diversified income streams and reducing single-revenue concentration risk over time.

Market Penetration Potential at Full Scale (7,200 T/Year)

Key Market Metrics

Farmland Coverage (ha)
~9,000
Farmers Potentially Reached
~16,700
Biodegradable Waste Processed (T/yr)
~28,000
Direct Jobs Supported
~155
09

Historical Financial Performance

TSL has demonstrated steady revenue growth and stable gross profitability over the last three financial years. The company's reported revenue increased from BDT 7.68 million in FY 2022–23 to BDT 12.67 million in FY 2024–25 — a +65% cumulative growth over two years — while maintaining gross margins consistently above 54%.

Revenue Growth
BDT Million | FY2023 – FY2025
Gross Profit Margin
% Gross Margin Trend
Financial Year Revenue (M BDT) Gross Profit (M BDT) Gross Margin YoY Growth
FY 2022–23 7.68 4.34 56.6% —
FY 2023–24 8.50 4.74 55.7% +10.7%
FY 2024–25 12.67 6.94 54.8% +49.1%
10–11

10-Year Financial Projections

The projection reflects TSL's current production reality and expected gradual scale-up after financing. Bio-compost revenue is forecast at BDT 2.88 crore in Year 1, rising to BDT 4.54 crore in Year 2 at full scale, with 5% annual price growth from Year 1's starting price of BDT 6,000/ton. COGS is maintained at 65% in line with historical cost structure.

Revenue & Debt Service Coverage (10-Year)
Total Revenue in Crore BDT | DSCR shown as line overlay

DSCR by Year — Debt Service Comfort

Yr 1
3.05×
3.05
Yr 2
3.32×
3.32
Yr 3
3.49×
3.49
Yr 4
3.66×
3.66
Yr 5
3.84×
3.84
Yr 6
4.03×
4.03
Yr 7
4.24×
4.24
Yr 8
4.23×
4.23
Yr 9 ✦
7.73× — Post-repayment
7.73
Yr 10
7.49×
7.49

✦ Jamuna Bank facility fully repaid from Year 9. DSCR strengthens materially post-repayment.

10-Year Financial Summary Table

Yr Prod. Vol (T) Price/T Total Rev (Cr) COGS 65% Earnings (Cr) Exist. Liab JB Liab Total Fin Surplus DSCR
14,8006,0003.312.151.160.300.080.380.783.05
27,2006,3005.223.391.830.300.250.551.283.32
37,2006,6155.483.561.920.300.250.551.373.49
47,2006,9465.753.742.010.300.250.551.463.66
57,2007,2936.043.932.110.300.250.551.563.84
67,2007,6586.344.122.220.300.250.551.674.03
77,2008,0416.664.332.330.300.250.551.784.24
86,8408,4436.644.322.320.300.250.551.774.23
96,4988,8656.624.312.320.300.000.302.027.73
106,0009,3086.424.172.250.300.000.301.957.49
12

Loan Repayment Plan

The proposed Jamuna Bank sustainability loan is expected to be repaid from TSL's regular operating cash flow generated through bio-compost sales. Revenue is projected at a starting price of BDT 6,000/ton with 5% annual escalation, plus 15% ancillary revenue. TSL's products are currently tax-exempt as sustainable agricultural inputs, strengthening retained earnings for debt servicing.

Combined Finance Liability Structure

YEAR 1 — Grace Period
Interest-only payments on new facility + existing liability. BDT 0.38 Cr total
YEARS 2–8 — Active Repayment
Full principal + interest on both facilities. Peak burden period. BDT 0.55 Cr/yr
YEARS 9–10 — Post JB Repayment
Only existing facility liability remains. Strong cash surplus. BDT 0.30 Cr/yr
Surplus After Financing
BDT Crore — available after all debt obligations
13

Security & Risk Comfort

💼
Productive Loan Use
100% into Assets & Operations
No non-productive deployment. CapEx strengthens assets; WC ensures continuity.
🏗️
Existing Operating Business
Scale-Up, Not Start-Up
TSL already produces ~3,600T/yr with established revenue and operating experience.
📈
Primary Security
Operating Cash Flow
DSCR 3.05× in Year 1, improving to 7.73× after full repayment.
🔄
Phased Growth Path
Realistic Projections
No unrealistic overnight jump. 4,800T in Y1, 7,200T from Y2 — a credible path.
14

Risk Analysis & Mitigation

Risk Heat Map
Likelihood vs. Impact — with mitigation strategies
Risk Factor Severity Mitigation Strategy
Operational Disruption Low CapEx strengthens assets; WC ensures liquidity for uninterrupted operations across labor, transport, fuel & maintenance.
Scale-Up Delay Low Phased ramp: 4,800T in Y1, full scale from Y2. Forecast already incorporates transition risk.
Market / Demand Risk Low Bio-compost is a functional input — not discretionary. 5% price growth is conservative; ancillary revenue provides supplemental buffer.
Cost Overrun Risk Moderate COGS modeled at 65% based on historical data. Historically cost-efficient operations provide a strong buffer.
Combined Financing Burden Low Both existing and proposed liabilities included in projections. DSCR >3× throughout peak repayment period.
Revenue Concentration Moderate Bio-compost is core; ancillary revenue (15%) provides supplementary diversification. Model is profitable even without ancillary income.
Regulatory / Compliance Low Business aligned with sustainability mandates. Products classified as tax-exempt agricultural inputs. 20-year PPP ensures institutional stability.
15

Environmental & Social Value

At 7,200 tons/year production, TSL's environmental and social footprint becomes substantial. The business moves beyond a small waste-recovery activity and begins to create visible environmental, agricultural, and livelihood impact through regular production and market supply.

🌿
9,000
Hectares of Farmland Covered
At 0.8T compost/ha application rate from 7,200T annual output
👨‍🌾
16,700+
Farmers Potentially Reached
Based on Bangladesh avg. farm size of 0.54 ha (FAO data)
🏭
~155
Direct Jobs Supported
Based on Dhaka composting case study: 10 workers per 3T/day plant
🌡️
3,000–
Tons CO₂e Saved / Year
Up to 9,600T CO₂e/yr. EPA WARM model & NSW EPA soil carbon benchmarks. Indicative estimates only.
♻️
28,000
Tons Biodeg. Waste Processed
Annually diverted from landfill. Reduces methane, odor & insect pressure in urban areas.
🧪
−35%
Chemical Fertilizer Dependence
Partial substitution of synthetic fertilizers improves soil health & reduces chemical exposure risk
Environmental Impact Breakdown
Key sustainability dimensions at full operational scale

SDG Alignment

  • SDG 11 – Sustainable Cities: Reduces urban waste burden in Jashore municipality through structured collection and processing.
  • SDG 12 – Responsible Production: Circular model converts waste into productive agricultural input — zero-waste approach.
  • SDG 2 – Zero Hunger: Improved soil health through organic compost application supports agricultural productivity and food security.
  • SDG 13 – Climate Action: Estimated 3,000–9,600 tons CO₂e saved annually through composting vs. landfill disposal.
  • SDG 8 – Decent Work: ~155 direct jobs in collection, processing, logistics, and distribution in Jashore.
  • SDG 15 – Life on Land: Improved soil organic matter and reduced chemical input dependency protects land ecosystems.