a3h2 biodiesels pvt

7/31/2019 A3H2 Biodiesels Pvt

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A3H2 Biodiesels Pvt. Ltd.

Deenanagar,Distt. Gurdaspur, Punjab.

Ph:2762385,86, Fax:2762387

email: [email protected]

Contact Person: Harmandeep Kaur (President)

Contact no.: +91-9877788231

Date of establishment: 1st June, 2012
mailto:[email protected]:[email protected]


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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.html


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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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a3h2 biodiesels pvt

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