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A3H2 Biodiesels Pvt. Ltd.
Deenanagar,Distt. Gurdaspur, Punjab.
Ph:2762385,86, Fax:2762387
email: info@a3h2biodiesels.com
Contact Person: Harmandeep Kaur (President)
Contact no.: +91-9877788231
Date of establishment: 1st June, 2012
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About Company
The company is a Biodiesel producing firm.
Tag line of company: Reforming to a new
Green world
It deals with the producing of biodiesel from
Jatropha plant. The company will have its own
plantation of Jatropha plants and from it the
Biodiesel will be produced. The company willhave the cultivation of Jatropha plants in
Deenanagar Distt. Gurdaspur.
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Objectives
Bring innovative technologies and unlimited
supply of energy sources without damaging
and polluting environment.
A manufacturing company dedicated to
developing better energy solutions for benefitof a whole society.
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Mission
A manufacturing company dedicated todeveloping better energy solutions for benefit ofa whole society.
Bring innovative technologies and unlimitedsupply of energy sources without damaging andpolluting environment.
Intend to make lucrative profit to generate a fair
return for our investors and to finance continuedgrowth and continued development in qualityproduct
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Keys to success
Offer competitive price at the level of theconventional diesel fuel.
Build a relationship business: long-termrelationships, not single transaction deals withcustomers.
Emphasize inherent qualities of biodiesel andfocus on target markets.
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Company Ownership
It is a company form of organization. Themembers are:
Anupriya Mongia (B.Com, MBA)
Amolakdeep Singh (B.Sc, MBA)
Aslam Mohd. (B.Tech, MBA)
Harmandeep Kaur (BBA, MBA)
Harshal Goyal (B.Com, MBA)
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Products
Biodiesel is the name for the methanol-ester-basedbiofuel made from vegetable oils or animal fats.
In this business plan biodiesel will be produced fromJatropha.
Biodiesel is a clear liquid, without unpleasant odor orhandling characteristics, of virtually the same viscosityas mineral fossil diesel oil.
For this reason, it may be used in a standard diesel
engine without additional modifications. It may also be blended with petro-diesel to improve
quality.
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Future Products
The company in the initial phase will be
concerned with the production of biodiesel
but since with little modifications glycerin canbe obtained as a by-product and its price is
also quite good in the market so the company
will look at that issue also carefully.
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SWOT ANALYSISSTRENGTHS
The production of biofuels contributes tosecure energy supply.
The use of biofuels can reduce GHG emissions.
Due to a longer value chain within thenational boundaries, biofuel productioncreates new employment.
The production of co-products providesadditional income.
Biofuels are not or only little toxic.
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WEAKNESSES
The use of biofuels leads to a diversification oftransport fuel which arises the need ofdifferent technologies (e.g. engines).
Fuel prices largely depend on the sale of co-products.
Biofuels are characterized by lower energycontent per volume than fossil fuels
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OPPORTUNITIES
Biofuels have the opportunity to replace a largepercentage of fossil fuels.
Biofuels have the opportunity to decreasedependency on crude oil.
Biofuels have the opportunity to decreaseimports of crude oil.
Biofuels have the opportunity to reduce air
pollution and GHG emissions. An early introduction of biofuels facilitates a
peaceful change from the era of fossil fuels to theera of future fuels
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THREATS
Feedstock production of biofuels is incompetition with food production.
The biofuel market is a relatively new market.
The political lobby for biofuels is weak when
compared to the lobby of fossil fuels.
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Market analysis
Global position of Biofuel
Biodiesel revenues will increase to $71.0 billionworldwide by 2020, up from $18.4 billion in 2010.
For the past several years, the USDA has offeredgrants for biodiesel production through theCommodity Credit Corporation (CCC).
There is currently excess production capacity inthe biodiesel industry. Petroleum refiners, on theother hand, use more than 90 percent of theircapacity.
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Biofuel production in India
India is the sixth largest and one of the fastestgrowing energy consumers in the world, with arapidly growing economy, rising population andan expanding number of middle-class consumers.
Due to limited domestic crude oil reserves, Indiameets about 72% of its crude oil and petroleumproducts (diesel, aviation fuel, etc.) requirementthrough imports, which are expected to expandfurther in coming years.
In the last three years, India's oil importexpenditure has nearly doubled due to theescalation in global oil prices.
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The 'Indian Biofuel Industry' focuses on thecauses for the growing demand of biofuels, the
manufacturing technologies for the production ofbiofuels and government regulations.
The country started its biofuels journey in 2003
with an impressive growth rate until today.
The output of ethanol, the chief biofuel, loggedan impressive growth rate of 200% in 2005.
India produces ethanol from molassesand biodiesel is produced from jatropha.
http://www.energy-daily.com/reports/The_Current_Biofuel_Market_In_India_999.htmlhttp://www.energy-daily.com/reports/The_Current_Biofuel_Market_In_India_999.htmlhttp://www.energy-daily.com/reports/The_Current_Biofuel_Market_In_India_999.html7/31/2019 A3H2 Biodiesels Pvt
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The Indian biofuels production industry had totalrevenue of $167.1 million in 2010, representing a
compound annual growth rate (CAGR) of 7.7% for theperiod spanning 2006-2010.
Industry production volumes increased with a CAGR of9.1% between 2006 and 2010, to reach a total of 293.0thousand tons in 2010.
The performance of the industry is forecast todecelerate, with an anticipated CAGR of 5.7% for the
five-year period 2010-2015, which is expected to drivethe industry to a value of $220.1 million by the end of2015.
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Offer competitive price at the level of the conventional dieselfuel.
Create strong distribution channels to ensure stability of
production.
Emphasize key advantages of our product.
Build a relationship business: long-term relationships, not
single-transaction deals with customers.
Emphasize inherent qualities of biodiesel and focus on targetmarkets
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TARGET MARKETS
INDUSTRIAL CONSUMERS
FARMERS
DISTRIBUTORS
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We think our value proposition is quite clearand can be quite easily distinguished frommost of the others in the market.
We offer ecology-friendly and renewable typeof fuel.
Our project brings also new jobs and high-
technology to Indian agriculture and makes afurther step towards the energyindependence of the Indian economy.
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Were positioning our product for those, who
need and want to use non-polluting,
ecologically friendly fuel. Unlike mineral fuel, biodiesel is renewable
energy source, with comparable cost and
performance.
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We must charge appropriately for this unique
type of fuel.
We plan to sell biodiesel at current market
price set by Govt.
The government is now likely to fix a price of
Rupees 34 a liter for purchase of biodiesel by oil
marketing companies.
REF: http://www.svlele.com/biodiesel_in_india.htm
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We depend on direct contacts as our main way to
reach new buyers. As we grow, however, we need
to change the way we promote ourselves:
1. Advertising: We'll be developing our corepositioning message: "Clean Fuel of Future" to
differentiate our service from the competition.
We will be using local newspaper advertising,radio, and cable TV to launch the initial campaign.
2. Seminars, exhibitions and other promotion.
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We will maintain close relationship with
various companies, and agricultural
enterprises.
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Biodiesel is the name for the methanol-ester-basedbiofuel made from vegetable oils or animal fats. In thisbusiness plan biodiesel will be produced fromJatropha.
Biodiesel is a clear liquid, without unpleasant odor orhandling characteristics, of virtually the same viscosityas mineral fossil diesel oil. For this reason, it may be
used in a standard diesel engine without additionalmodifications. It may also be blended with petrodieselto improve quality of latter
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SALES PLAN
Biodiesel is planned to be sold using direct mail, seminars,promotion programs and advertising in businessnewspapers.
Because biodiesel is a valuable fuel for in-citytransportation companies, direct mail to these and othercompanies would be effective tool in promotion.
Ecology, energy, technology related seminars are effectivein finding regional representatives, partners, suppliers andbuyers of our product.
Promotion programs are: discounts to those carrying ourtrademark and symbolic, support to ecology and renewableenergy concerned organizations, participation in regionalfairs and events.
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MANY
PROBLEMS
ONE SOLUTION
BOIDIESEL
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MAJOR PROCESS PHASES
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Jatropha curcas
Minimum gestationonly 1 year
A bushy shrub and by pruning the growing height
may be maintained to a practical limit for harvesting
and other operations. Processing is comparatively easier due to low-density
oil.
High oil content- up to 40 %
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DETAILS
The density of oil from Jatropha curcas is
.92g/cm3.
The cost of the pilot plant is Rs. 5 lakhs.
Such 1675 trees can be planted in one Hectare
of land.
REF: Krishna engineers and consultants
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DETAILS
1 kg. of oil will be available from 2.5kg of
seeds
There is initial expenditure for plantation,
which will start paying on 2nd year onwards.
REF: Krishna engineers and consultants
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DetailsSeed rate
For one-hectare plantation about 5 -- 7.5 kg seeds are required. Fruiting starts from 2nd year if propagated by stem cutting but it
takes one year more while raised by seed. *
*Opting for second
Planting in field The land should be ploughed once or twice depending upon the
nature of soil. In direct planting system the seed/cuttings should be
planted in the main field.
Yield:
There will be about 1675 plants /ha at 3m x 2m spacing. Grown up
Jatropha from 4th year onwards yield 3-5 kg per plant under good
management. :
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Details
The average productivity can be projected as
follows:
Year of planting Per plant yield2nd year 0.5-1.0 kg
3rd year 1.0 3.0 kg
4th -6th year 3.0 5.0 kg
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PROCESS
.Milestone Start Date
dd.mm.yy
End Date
dd.mm.yy
EXPENSES
1 Equipment order 1.07.2011 500000
2 Purchase of tools and tractors 1.07.2011 410000
4 Farm preparation 1.08.2011 15.08.2011 225000
5 Plantation of Jatropha 15.08.2011 15 .09.2011 670000
6 Construction of plant 1.04.2012 1.06.2012 400000
7 Oil processing Equipment
installation
1.06.2012 1.07.2012 20000
8
Other Equipment and maintenance 1.07.2012 1.08.2012 10000
9 Crop harvesting 1.09.2012 30.09.2012 171000
10 Biodiesel processing 2.09.2012
11 Sales of biodiesel 15.09.2012
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PICTORIAL REPRESENTATION
SEQUENCE
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FINANCIAL ANALYSIS
ASSUMPTIONS: Tax rate is 30%
In first year there is no production of biodiesel
Promotional expenses after first year
Salaries increase after second year
Straight line method of depreciation
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START-UP REQUIREMENTSStart-up Requirements
Start-up Expenses Rs.Legal 30,000
Stationery etc. 10,000
Insurance 20,000
Rent 2,00,000
Computer 30,000Others 15,000
Total Start-up Expenses 3,05,000
Start-up Assets
Cash Required 2,25,000
Start-up Inventory 0Other Current Assets 0
Long-term Assets 15,80,000
Total Assets 18,05,000
Total Requirements 21,10,000
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Start-up FundingStart-up Expenses to fund 5,02,000
Start-up Assets to fund 18,05,000
Total Funding Required 23,07,000
AssetsNon-cash Assets from Start-up 15,80,000
Cash Requirements from Start-up 3,00,000
Additional Cash Raised 23,00,000
Cash Balance on Starting Date 26,00,000
Total Assets 41,80,000
Liabilities and Capital
Current Borrowing 0
Long-term Liabilities 0
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities (interest-free) 8,00,000
Total Liabilities 8,00,000
Capital
Planned Investment
Owner 37,22,000
Investor 0Additional Investment Requirement 0
Total Planned Investment 37,22,000
Loss at Start-up (Start-up Expenses) 5,02,000
Total Capital 32,20,000
Total Capital and Liabilities 41,80,000
Total Funding 46,82,000
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KEY FINANCIALSPARTICULARS 2012 2013 2014 2015 2016
Revenues
0 15,54,400 42,88,000 57,60,000 10,720,000
COGS
2,25,000 5,10,880 6,27,200 7,46,000 10,46,000
Net Profit
0 22,680 25,12,220 38,05,900 83,89,800
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Investment analysis
Investment analysis FY 2012 FY 2013 FY 2014 FY 2015 FY 2016
Initial Investment Rs. Rs. Rs. Rs. Rs.
Investment 35,00,000 0 0 0 0
Dividends 0 0 0 0 0
Ending Valuation 0 0 0 0 2,93,65,000
Combination as income stream35,00,000 0 0 0 2,93,65,000
Percent equity required 35%
Net Present Value (NPV) 13,39,396
Internal Rate of Return (IRR) 53%
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HUMAN RESOURCE
LABOURERS
NUMBER -6
DUTIES-
TIME TO TIME IRRIGATION TO FIELDS
HANDLE THE TRANSPORT OF SEEDS FROMINVENTORY TO OIL EXTRACTION MACHINE
QUALIFICATION-
MATRIC
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HUMAN RESOURCE
SKILLED WORKER
NUMBER- 3
DUTIES-
TO CHECK THE NORMAL OPERATION OF
PLANT PROCESS
QUALIFICATION- DIPLOMA HOLDER IN MECHANICAL
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HUMAN RESOURCE
QUALITY OFFICER
NUMBER-1
DUTIES-
TO ENSURE THE REQUIRED QUALITY OF FUEL
REQUIRED BY THE INDUSTRIES ETC
QUALIFICATION- GRADUATE IN BIOTECH
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HUMAN RESOURCE
FINANCE OFFICER AND ASST FINANCE
NUMBER- 1 EACH
DUTIES-
RECORD OF FINANCIAL MATTERS
MANAGEMENT OF EXPENSES AND REVENUES
QUALIFICATION-
MBA/ BBA IN FINANCE WITH EXCELKNOWLEDGE
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HUMAN RESOURCE
HUMAN RESOURCE HEADNUMBER-1
DUTIES-
To recommend and ensure implementation Strategicdirections for people development within the organization.
Provide counsel and assistance to employees at all levels in
accordance with the company's policies and procedures as
well as relevant legislation
QUALIFICATION-
BBA/MBA IN HR
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HUMAN RESOURCE
MARKETING OFFICER AND ASSTNUMBER- 1 EACH
DUTIES
Responsible for establishing, maintainingrelationships with customers.
Responsible for growth in sales for the
companyQUALIFICATION-
MBA / BBA IN MARKETING
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HUMAN RESOURCE
PEON AND SECURITY
NUMBER- 2 IN EACH CASE
QUALIFICATION-
MATRIC
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RISKS AND CONTINGENCIES
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FUTURE PROSPECTS
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