biogas plant mktplan nikhil tanuj

8/12/2019 Biogas Plant Mktplan Nikhil Tanuj

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RURAL MARKETING PLAN

ON FAMILY SIZE BIOGAS PLANTS


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Acknowledgements

This acknowledgement is not merely a catalogue of names but an expression of deep

sense of gratitude to all those who helped us in completing this report.

We would like to extend our sincere thanks to our guide and mentor, Prof. Rakesh Saxena

who guided us in completing this report on marketing plan of domestic size biogas plant.

We would like to thank the staff members of Excellent Renewable in Valsad. We are

thankful to our Reporting Officer, Mr. Rama Shiva and Excellent Renewable COO, Mr.

Dipen Kanabar, who helped us during our research and gave us important insights

regarding the Biogas market.

Last but not the least; we would like to acknowledge the contribution of our batch mateMr. Mukund Narayan in designing the brochure and Ms. Priyanka Suresh Mehta for

editing the content of brochure.


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Abstract

About 68% of Indias population resides in the rural areas and this segment totally

depends upon the use of biomass like charcoal, wood, straws, crop residues and cow-ding

to meet its domestic energy needs. However, using biomass has serious bad effects such

as deforestation, health hazards like lung diseases, respiratory infections etc. harmful

fumes and loss of fertility of soil as major part of cow-dung is used in cooking food

which would have been used as manure. Deforestation and various environmental laws

have made it difficult for rural population to procure wood and fetching it is taking

precious time of children which is adversely affecting literacy rates.

In light of the above reasoning, it becomes imperative to develop a sustainable source of

energy that is easily available and clean to use. This is where biogas comes into picture.

Biogas is a mixture of methane and carbon-dioxide produced by bacterial degradation of

organic matter and used as a fuel.1

In India, where there are huge differences in the infrastructure facilities between the urban

and the rural population, biogas can play a crucial role in fulfilling domestic energy needsof the rural class. Historically, biogas technology came to India in 1937 when it was

introduced in a sewage treatment plant. The researches and experiments from that project


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Limitations

The very short duration (7 weeks) of this project is the major limitation in our study. The

project research is still in progress. Due to time constraints, we are unable to present the

survey data and its analysis at this moment but all the facts stated in plan are based on

qualitative analysis through formal and informal interviews with the villagers.


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Table of Contents

1.

Executive Summary .................................................................................... 12. Working of biogas plant ............................................................................. 2

3.

Need Identification ..................................................................................... 2

4.

Analyzing Environment .............................................................................. 3

4.1. Socio-cultural Environment ..................................................................... 3

4.2.

Natural Environment..............................................................................................34.3. Political Environment .............................................................................................3

4.4. SWOT .........................................................................................................................4

5.

Competitor Analysis ................................................................................... 5

6.

Market Strategy .......................................................................................... 5

6.1.

Marketing Objectives.............................................................................................5

6.2. Market Summary.....................................................................................................6

6.3. Target Market ...................................................................................................6

6.4. Positioning ........................................................................................................9

7. Marketing Mix .......................................................................................... 11

7.1.

Product .....................................................................................................................117.1.1. Points of Parity ................................................................................................................11

7.1.2. Points of Difference ........................................................................................................11


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Annexures

1. Questionnaire for schools with mid-day meal schemes or any other arrangement for

food for students .....................................................................................................................vi

2.

Questionnaire for rural households ......................................................................................ix

3. Questionnaire for hotels ............................................................................................... xii

4. Brochure (3 fold).................................................................................................................xiv

5. Brochure (double sided)......................................................................................................xv

Tables and Figures

Table 1 SWOT ..................................................................................................................... 4

Table 2 Biogas plant details....................................................................................................... 11

Table 3 Biogas plant price details.............................................................................................. 12

Figure 1 Market Summary ................................................................................................... 6

Figure 2 Electric Brooding...........................................................................................................8

Figure 3 Gas Brooding ..................................................................................................................8

Abbreviations

KVIC- Khadi and Village Industries Commission


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1. Executive summary

In the present project, it is proposed to introduce a low cost family size biogas plant

which would have a capacity of 1-4 cubic meters. It would be different from other

products on two accounts. Firstly, it would use kitchen waste, poultry waste, human

excreta and other organic materials along with Cow-dung and secondly, it is made

entirely from plastic which makes it ready to use and easy to transport.

On one hand it would benefit the rural households for their domestic needs. It would save

labour hours spent on fetching firewood and protect the cook from harmful fumes

released from burning biomass. On the other hand, it would benefit the hotels on the

highways and schools in which food is prepared for mid-day meal schemes. In these

segments, biogas would not completely substitute the current fuel but will significantlycontribute to limit use of wood, LPG and other non-renewable sources leading to greener

planet and potential savings from rising LPG costs.

The company Excellent Renewable Pvt Ltd is an established player in the market of

biogas plants from past 7 years. Currently, it deals with big biogas plants i.e. from 15 cu

m to 270 cu m. It has carried out numerous community projects all over the world and

now for expansion it is venturing into family size biogas plants which are sized 1-4 cu m.


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2. Working of Biogas plant

Biogas is the gas produced by microbial

decomposition of organic waste. The process is

anaerobic in nature. The gas could be obtained

from decomposition of materials like cow-dung,

kitchen waste consisting of peel of vegetables,

poultry waste, food leftovers as well as human

excreta. Initially, to start a biogas plant cow dung

is required as it contains the microbes required for

production of gas. So for the initial 6-8 weeks,

depending on the capacity of plant (1m3, 2m3 etc.), cow dung and water are mixed in

equal quantity and fed daily into the digester chamber of biogas plant. The

decomposition of cow dung releases the gas which is captured at the top of the plant andsupplied via pipes. The remaining mixture consisting of undigested part and water is

known as slurry and is goes out of plant via an outlet. This slurry can be used as organic

manure. After the initial feeding of cow dung, other raw materials stated above can then

be gradually mixed to run the plant. If the plant has to be run completely on wastes other

than gobar, we have to increase the percentage of other materials in the following weeksafter the initial cow-dung feeding is done. The quantity of raw material to be fed and the

amount of gas obtained varies accordingly with the raw materials.


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they generate lot of smoke and have very low calorific value. On the other end, hotels

could also be benefitted from Biogas plants. It is observed that they generate huge

quantity of kitchen waste and they have problem disposing this waste. So their need of

waste disposal can be met by our product.

4. Analysing Environment

4.1. Socio-cultural environment

Promotion of any product in villages always has been a difficult task, reason being

reluctance of accepting anything new among villagers. It also a fact that once villagers

sees better value in the product, they become loyal and word of mouth publicity is fast

among them.

Cow-dung has been used as a cooking fuel. It is sun dried and then used for cooking.

But sun drying reduces the calorific value of cow-dung as well as produce substantial

amount of smoke. So when villagers are presented with better value proposition for

the same cow-dung in form of Biogas, it should be readily accepted by them. There

might be reluctance in installing plants which could be run by human faeces due to

the taboo attached with it. Also, pucca toilets are still not very common in villages.

4.2. Natural Environment

Use of biogas has potential to mitigate many of the harmful environmental effects.

When traditional biomass fuels like firewood, coal, and cow-dung are burnt they emit

lot of infectious fumes like carbon monoxide which causes many respiratory diseases


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4.4.

SWOT analysis of our product

Table 1

Strength

No civil work required

Made of FRP, so light in weigth, easy totransport.

After sales support by making a Point ofcontact in every cluster to address issues.

Providing cow dung during intial weeks tohotels before it is completly run on kitchenwaste

Abundance of raw material available inrural areas.

Technical expertise available with ourorganisation Excellent Renewable Pvt. Ltd.

Weakness

Low calorific value of Biogas as comparedto LPG.

More time required for cooking as

compared with other fuel.High cost which acts as barrier for farmersto buy it.

Less production of gas during rainy seasondue to low atmoshpheric temperature.

Difficulty in handling of slurry.

Unavailability of loan at low interest rate

SWOT


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5. Competitor Analysis

Though the biogas technology has been known since 80s, not many private players

have ventured into this segment. The initiative has always been taken by government/

NGOs/Co-operatives. Government floats tender for the construction of these plants

and it is then awarded to contractor whose job is to build the plant. In Valsad, Sainath

industries are one of such private player who has a contract with SUMUL dairy.

SUMUL dairy has promoted biogas usage by asking beneficiaries who supply milk to

diary to install biogas at their homes. They place order with Sainath Industries to

construct biogas plant. It has been observed that no after sales have been provided by

any of these agencies. The result of such negligence is that many of the plants

constructed by them are not in working condition even when the problem is very

minor. This has resulted in negative word of mouth publicity among villagers. This

negative perception has kept private players away from this segment. So there has not

been any single private player in this segment who directly deals with villagers. Our

company will take the leverage of this weakness and will try to provide after sales

support so as to build trust as well as loyalty among customers. We will also try to

educate people about the knowhow and operational issues of biogas by supplying

manuals along with plant so that if they face any minor problems they can resolve it

immediately by themselves.


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Cooking

fuels

renewable

BiogasSolar

energy

Cow-dung

cakes

non-

renewable

LPG PNG Wood Charcoal

perception and status value of the product if applicable

tolerance for breakdown and back-up options available

o Key user constraints

Define and articulate accompanying services like training, after-sales support etc.

Perform a competitive analysis that will identify key product features, geography and

strengths

To create promotion instruments like brochures for target segment as well as

distributors, posters etc.

6.2. Market summary


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a. Rural households

Rural households have always been a very viable segment for biogas units. But they

always have been targeted for big community biogas plants. Our product, family size

biogas plant is specifically designed to cater to individual households and hence this

segment is our prime target segment.

b. Hotels

Hotels have always had a problem of food leftovers and kitchen waste which have to be

either dumped in the nearby empty plots of land or given to the municipality on regular

basis for a monthly charge. They became our second segment to target as they are looking

to save the monthly charge to municipality and save on their LPG cost which is rocketing

skywards in recent times.

c. Industrial units with mess/canteen

To look into this segment, we covered many industrial units of Vapi Industrial area which

included S.Kant healthcare, Welspun, Aarti, Alok, N.R. paper mills, Micro inks etc. Most

of these units were very large and employed 3000 workers on an average. The factories

having more than 2000 workers had pipeline connection for cooking gas which they got

Rs 28 33/ Kg For the smaller industrial setups (less than 1000 workers) they either did


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e. Poultries

This segment was unexplored and it was the suggestion of our team to look into this

particular segment. Broiler is the common form of poultry raised in household. These arethe birds used as chicken in food. The broiler has a rearing period of 40-42 days. For

rearing then the floor in the shed is covered with the rice husk know as bedding or litter.

Birds urinate and pass their faecal matter on this bedding material. At the end of rearing

period this litter material is enriched with faeces and the volume of the litter is increased

due to these mixing.

Few Facts

Batch period: a normal period to rear a batch of broiler is around 40 days.

Inter batch period: A minimum of 10-15 days gap is maintained between two

consecutive batches. No of batches in a year: 5-6 batches

Initial litter used as input: Approx. 200kg for 1000 birds

Litter mixed with faeces at end: Approx. 2000kg2500 kg.

Brooding: During the initial rearing period, baby chick have to be provided with external

heat as their internal body temperature is


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batch of litter approx. 50-55 days (40days + 10 days) are required. If we assume that a

4cu m biogas plant uses 30-40 kg of litter per day, the stored litter could daily be feed

into biogas plant and is sufficient enough till next cycle.

Value proposition for customer: Currently, litter is either used as manure in agriculture or

sold off at price of Rs 1200-1300 per tonne. If they use it as a raw material in biogas

plant, the gas could be utilized for cooking. The gas could also be used for brooding in

initial 8-10 days of rearing cycle. Currently farmers are using electric bulbs or LPG gas

brooding to provide extra heat during brooding. Biogas could be promoted to substitutethe LPG/ bulb usage during brooding. This will help farmers to save a lot on electricity

bill (around Rs 2250/- per 1000 birds per year) or on LPG.

Current Market Scenario: As far as we found, there is little awareness among people

about the use of litter in biogas plant as well as no other biogas company has ventured

into this segment. This new segment has been proposed to our company and it has been

sent to the technical team to look into chemical feasibility. This segment will be taken up

later after R&D.

f.

Schools and hostels (where food is cooked for students)

The central govt. had started mid-day meal scheme in which students from standard I-

VIII are provided lunch in schools itself. Food is generally prepared in the schools and

th s it becomes o r third segment to foc s on In illages there is eas a ailabilit of


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For Rural Households

We will position our product as a complete substitute of the existing fuel. Through numerous

field visits we found that the existing biogas plants have completely replaced wood and LPG

for cooking needs. However, households still use wood for heating water used for bathing.

So, we plan to be aggressive in this segment and position our product as a transformer of

complete waste into cheap and effective energy source which would not require any

maintenance and future costs. We would also actively promote the importance of using slurry

as manure for crops as it retains most of its nutrients after the anaerobic process. To compete

with our competitors we would position our product as ready to use without hassles of

cement concrete work which would give us an edge over our competitors. The after sales

services and raw material provided in the initial phase would put us ahead in the market.

For schools and hotels

For this segment we would position our product as a partial replacement of the current fuel as

their cooking requirement cannot be fulfilled by biogas alone. Hotels require fuel with high

calorific value in order to serve its customers quickly. Hence, LPG is always preferred ever

biogas. But in this segment we would position biogas as a fuel which can be used for boiling

milk, water and other purposes which do not have time constraint. This would help is saving

more than 25% of current LPG requirement leading to huge savings. One the other hand, it

would also save their waste disposal cost which is generally paid to municipality.

S h l i t t t f d t it ld t l d t th t


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7. Marketing Mix

7.1.

Product

Our product family size biogas plant will be available in 3 sizes- one, two and four cubic

metres. The sizes would be based on the availability of raw material and the requirement of

gas. Through R&D and market research we found the following:

Table 2

Biogas plant details

Biogas plant size In terms

of Gas production

Capacity (Cu m/day)

Raw material

requirement (in

Kg)

No. of people for

which cooking gas is

available

Replacement of

LPG per day in kg

1 10 4 to 6 .4

2 20 6 to 8 .8

4 40 12 to 15 1.5

7.1.1. Points of parity

Our patented design of biogas plant will have the same

chemical process which is present in all plants across the

world. It would have an inlet for feeding raw material and an

outlet for slurry. We would also provide leak proof pipes and


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Along with the plant, we would be providing customers with a detailed and descriptive

instruction manual which would have solutions to general problems that may arise in the

plant.

7.2.

Price

Our product is still in its R&D phase and according to technical team we would be able sell it

at following prices:

Table 3

Biogas plant price details

Biogas plant size in terms of Gas production

(Cu m/day)

Prices(in Rs)

1 26,000

2 32,000

4 40,000

*excluding transportation, tax and duties, installation charges

These prices will include costs for after sales services provided within 2 years of installation.

They can consult our point of contact that will be present in every cluster of villages even

after that. As our new design is in R&D phase, it is yet to be sent for approval from the

government. After the approval the customers are entitled to get subsidy. Currently, non-

fi ki 75% b id d fi ki 50% b h l b


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have cattle and if we get positive results for poultry litter feasibility, Valsad would be good

place as poultry rearing is very common in this area and the nearby areas of Maharashtra.

7.4.

Promotion

Promotion is the most important aspect for our product. Due to directionless promotion by

the government, the mind-set of the rural household has been more negative for biogas plant.

They link biogas plants with difficult handling of slurry, an expensive product which can be

bought only with subsidy, uneconomical and which occupies a lot of space. According to our

survey and feedback from the current users as well as technicians wrong feeding and

moisture in the connecting pipes are the only reasons for inefficiency of biogas plant. These

reasons are related to the actions of the user alone but these problems are not handled

properly and which causes bad word of mouth publicity. To address this issue we have

developed a marketing campaign. This campaign will initially take off with demonstrations

of the working of our biogas plant at panchayat meetings and other public gatherings. This

would be done using a truck in which biogas plant would be installed and initial feeding

would be done. This would also showcase the light weight and transportable feature of our

product. Along with this we would distribute the pamphlet we have designed especially for

this product (refer to annexure for pamphlet). Once this campaign is done and we start getting

orders from households we would look for ideal households within these customers from

each village-cluster to act as our point of contact. One of the members would be trained by

h i i d ld b id i ll f hi i Th h h ld ill h


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8. Implementation

To bring in the initial sales, we have designed the questionnaires (refer annexure) which will

help us in gauging the raw material availability within households, in the schools and in the

hotels. We would also gauge the economic conditions of the households to see their ability to

pay. Based on our survey of all the villages in Valsad district, we will filter out the

households who have raw material availability as well as capability to pay. These households

will then become our prime focus. As stated in promotional strategy, we will make one of

these households (customers) our point of contact in every cluster of villages and their plantcan be used to demonstrate the working to other villagers. Gradually we would try to capture

those households which belong to lower economic strata also. For hotels, we would provide

economic feasibility report to align with their profit making minds and to make them believe

that our product will help them save LPG and waste disposal costs.

In schools, we would try to channelize our sales through the govt. as the infrastructure fund is

controlled by them. We would educate children through demonstration in order to fix our

idea in the minds of next generation and to spread good mouth publicity.


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Annexure 1

Questionnaire for schools with mid-day meal schemes or any other

arrangement for food for students

1. School Details

1.1. School Name..................

1.2. Address..

Village. Zilla..

1.3.Name and contact details of Headmaster..

.1.4. Ownership of School (Tick any one)

Private Government Govt. Aided

1.5. Type of School

Primary

(I-V)

Middle

(VI-VIII)

Secondary

(IX-X)

Sr. Secondary

(XI-XII)

Others(Specify)

1.6. Has the school been evaluated before for biogas plant?

1.7. What is the annual budget , if any, of the school for infrastructure/improvements?

1.8. What incremental investments has the school made before on living infrastructure?(construction, sanitation, energy etc.)

yes no


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required for cooking

How many unskilled

support staff is used in

kitchen?

Current fuel Details CookingTime(in

hrs.)

Fuel cost/cookingtime

Man-hrs.

per

day

Type ofworkforce

Procurement details

Fuel loading details

Cooking- Rice

-

Dal

- Vegetables

- Roti

Disposal

Equipment Maintenance

Whether food is cooked

twice a day?

Yes No

How the kitchen waste

is disposed?

Municipality Open

disposal

Others

(Specify)

3. Biogas plant

3.1. Is there a biogas plant in the school?

3.2.Proceed further only if the answer to the above question is yes.

What is the size of the plant?(cubicm)

yes no


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Was there any after sale servicesprovided for maintenance?

3.2.1. Is the plant currently working?

3.2.2. What were the problems faced in its working?

....

3.2.3. How was the problem resolved and in how much time?

3.2.4. How did you get to know about biogas plant?

3.2.5. Any other remarks.

yes no


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Annexure 2 Questionnaire for rural households

1. Awareness level

1.1.Have you heard of biogas plant?

1.2.If no, proceed to question no. 3. If yes, please answer the following:

Have you ever seen a biogas plant? Yes (where?).. No

Do you think biogas is better(cheaper,

cleaner, easier) than your current source of

fuel?

Agree Disagree Cant say

Have you ever been contacted by any biogas

plant provider?

Yes (which?). No

According to you, for what purpose biogasis used?

Any other information you have about

biogas plants?

2. Biogas plant

2.1. Do you have a biogas plant?

2.2. If no, proceed to question no. 3. If yes, please answer the following:

What is the size of your plant?(cubic

m)

When was it installed?

Total cost of installation?

Subsidy received? If yes, how much?

If the answer to above question is

yes, then through which agency did

you get subsidy?

yes No

yes no


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2.2.2. What were the problems faced in its working?

....

2.2.3. How was the problem resolved and in how much time?

2.2.4. How did you get to know about biogas plant?

2.2.5. Any other remarks.

3.

Current Fuel details3.1.Source of fuel for cooking (tick one or more and specify the quantity in appropriate

unit)

LPG(no./per

month)

Charcoal Cow Dung Wood Other(specify)..

l CookingTime(in

hrs.)

Fuel cost/cookingtime Man-hrs. per

day

Type ofworkforce

. .

Fuel 1 Fuel 2

Procurement details

Cooking

Disposal

Equipment MaintenanceHow the kitchen waste is

disposed?

Municipality Open

disposal

Others

(Specify)


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Bore well Govt connection Pond/river well Other(specify).........

4.6. Other details

4.6.1. Approximate distance between appropriate area of installation of biogas plant andcooking place..

4.6.2. Pucca Toilet in the household that can be connected to the biogas plant?

5. Personal details

5.1.Name of respondents................................................................................................................

5.2. Village.5.3. Zilla

5.4 Occupation.................................................................................................................................

5.5. Total family members............

5.6 Do you have a bank account

5.7. House Type

5.8. Is your house electrified?

5.8.1. If yes, what is the cost per month incurred?

5.9. Assets

yes no

yes no

Kaccha Pakka Semi-pakka

yes no

A t N b


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Annexure 3 Questionnaire for hotels

1. Hotel details

1.1.Hotel name and address..

1.2.Owners/respondents name and phone no....1.3.Average number of visitors per day

1.4. Type of Hotel

2. Current fuel details

2.1.Which fuel is currently used for cooking?

Fuel type(tick one or moreof the following)

Quantity per month Approx. cost per

month(in Rs.)

LPG No. of cylinders..

Wood (in kg)...........

Charcoal (in kg).......

Gobar (in kg)...........

PNG (in kg)...........Biogas (Plant capacity in cu m).......

Other(specify).. (in appropriate unit).......

3. Kitchen waste details

3.1.How is the kitchen waste disposed and the cost(in Rs.) incurred per month?

3.2.Is the kitchen waste segregated before disposal/re-use?

4. If biogas is used then answer the following, if not proceed to question no. 5

Veg Non-veg

Yes No


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Was there any after sale servicesprovided for maintenance?

4.1.Is the plant currently working?

4.2.What are/were the problems faced in its working?

....

4.3.How was the problem resolved and in how much time?

4.4.How did you get to know about biogas plant?

4.5.Any other remarks.

5. Other details

5.1.Animals if any

If answer to the above question is yes, then only proceed further.

5.1.1.

Details(Fill young/adult according to relevance)

Type of Animals Young(in nos.) Adult(in nos.)

Cow .....(upto 4 yrs.)

Buffalos .(upto 4 yrs.)

Other(specify)

5.1.2. Currently, how are you using/disposing animal waste?

yes no

yes no

Annexure 4 Brochure (3-fold)


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xiii | P a g e

Too good to believe? Get us

to demonstrate for you.Family size Biogas PlantBiogas is an economically andecologically significant way to

produce energy. Fossil fuels are

finite and pollute the environment

to a great extent, unlike the

biomass-based resource-savingalternative. The resource is

renewable and its usage produces

only as much CO2 as the plants

have absorbed before.Whatsnew?

Available in 3 sizes-1, 2, 4 Cu m.

Made of FRP material-light totransport and can handle kitchen

waste, poultry waste etc.

Provision to insert a water jacketsystem-Cleaner and less messy.

Efficient Slurry Management system.

Can be installed on the roof,

underground basically anywhere.

Negligible maintenance cost, effectiveafter sales services and point ofcontact in your village.

You save MONEY!You become GREEN ENTERPRISES

USING RENEWABLE ENERGY!!

A2/34, G.I.D.C. Killa Pardi-396125, Dist Valsad,Gujarat, India phno:+91 260 2995711

Email:[email protected]

www.excellentrenewable.com

Annexure 4 Brochure (3 fold)

Annexure 5 Brochure cum Leaflet


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Family Size Biogas Plants

Biogas is an economically and ecologically

significant way to produce energy. Fossil fuels

are finite and pollute the environment to a

great extent.

The resource is renewable and its usage

produces only as much CO2 as the plants haveabsorbed before.

.

Our promisesInnovation and ruggedness-Made of FRP

material-light to transport and can handle

kitchen waste, poultry waste etc.

State-of-the-art development and persistenttechnology- Provision to insert a water jacket

system. Cleaner and less messy.

Extremely Reliable-Negligible maintenancecost, effective after sales services and point ofcontact in your village.

Why Excellent Renewable?

Get rid of huge investments in giant-sized, messy

messy biogas plants. A technology so effective should

should be the least cumbersome!

Biogas plant

size(Cum/day)

Raw

material (in

Kg)

cooking

for

people

Replacement

of LPG per day

in kg1 10 4 to 6 .4

2 20 6 to 8 .8

4 40 12 to 15 1.5

Bonus Points:

You save MONEY!

You reduce TIME SPENT ON LABOUR!

You can promote yourselves as GREEN

ENTERPRISES USING RENEWABLEENERGY!

We provide rural and industrial biogas solutions with the mission to achieve generationof 50MW renewable energy for rural, urban and industrial use by processing waste.

A2/34, G.I.D.C. Killa Pardi-396125, Dist Valsad, Gujarat, India phone no:+91 260 2995711 Email:[email protected]

biogas plant mktplan nikhil tanuj

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