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Financial Viability



FINANCIAL VIABILITY BIODIESEL INDUSTRY

Usage of Diesel in India:

  • 70% of Diesel, 99.6% of Petrol consumed by Transport Sector.
  • 13.15% of Diesel Consumed by private cars and Uvs, 8.94% by commercial cars & Uvs and 6.39% by 3- wheelers: Trucks account for 28.25%, Buses 9.55% and Railways about 3.24%.
  • Agricul style="line-height: 2.0;"ture Sector uses 13% of Diesel; industry consumes 9.02% including industry Gen-Set with 4.06% and Mobile Towers 1.54%.

BioDiesel Business In India

  • India’s diesel demand growth in 2017 accounts for one third of Asia’s demand growth for fuel.
  • India’s annual diesel consumption coul style="line-height: 2.0;"d rise to 150 billion litres by 2030 from 90 billions liters now.
  • The energy hungry nation which is looking to cut its oil imports by 10% in 2022, aims to boost use of bio fuels – Says Sri Dharmendra Padhan, Hon’ble Minister of Petroleum . Govt of India.

Top Ten Towns with Highest Nos. Of Car Ownership:

Rank Major cities of India In Numbers
1 Delhi 2172069
2 Bengaluru 800866
3 Chennai 653270
4 Greater Mumbai 617556
5 Hyderabad 558081
6 Pune 332293
7 Chandigarh 286584
8 Ahmedabad 239558
9 Jaipur 235310
10 Kolkata 222069

Diesel Requirements Usage of Diesel

  • Transport with sub-categories such as Buses, HCVs, LCVs, Taxies,& Utilities Vehicles/ Cars (Personal/ Commercial Vehicles).
  • Agricul style="line-height: 2.0;"ture with sub-categories such as Tractors, Pumping Sets, Tillers/ Harvesters/ Thrashers
  • Power Generation (Gensets)
  • Industrial Applications other than for power generation.
  • ‘Others’ for what is not included in any of the above categories.

Challanges For Any Industry

  • Finance
  • Technology
  • Procurement of uninterrupted Raw
  • Materials
  • Marketing of Final Report

Advantages of BioDiesel

  • 78.5 % Cleaner than conventional diesel fuel.
  • Reduces unburned hydrocarbons ,carbon monoxide and particul style="line-height: 2.0;"ate matter in exhaust fumes.
  • Contains no sul style="line-height: 2.0;"phur.
  • Emission are nearly 50% less than conventional diesel fuel.
  • Doesn’t cause eye irritation.
  • More Biodegradable than sugar and less toxic than table salt.
  • Fuel economy is same as conventional diesel fuel
  • Much better lubricant than conventional diesel fuel and extends engine life.
  • High cetane rating ,which improves engine performance
  • 1% biodiesel will increase lubricity by65%.
  • Less Engine Noise .
  • Better engine performance
  • Increased Engine Life.
  • More Pick up .
  • More Torque
  • Lasts Longer
  • Burns Cleaner – Less Wastage
  • Greater Mileage
  • No modification in existing infrastructure required .
  • Renewable source
  • Aromatics –free
  • Non-Explosive
  • Consistent performance in all driving & weather conditions .
  • Lower toxicity compared to petroleum diesel fuel.
  • Safe to handle
  • Bio-diesel is bio-degradable.

Buy-Back Agreement

  • Buy-Back Agreement is an agreement for 100% buy- back of your both Main Project i.e., Bio- Diesel and By- Product i.e., Crude Glycerol (finally Glycerin)
  • The agreed price in Rs.3/- per Ltr (Bio- diesel) profit over and above the cost.
  • Cost includes Purchase of Raw Materials plus Production Cost.

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 formul style="line-height: 2.0;"a to arrive Cost of Production:
  • Cost of Raw Material will be the Cost at we supply Raw Material to our customers. i.e., prevailing cost of raw materials.
  • Rs.3.50 to 4/- (at present estimated cost of production and this may vary from time to time by up gradation of technology)
  • Rs.3 /- PROFIT

Freedom To Choose

LIBERTY TO MANUFACTURER

  • Manufacturer has liberty to sell his product even to others with due permission form our company
  • ADVANTAGE

  • The main advantage of BUY-BACK AGREEMENT is Manufacturers will get updated Technology from time to time. Will get all, technical know-how .

  • Profit, Purpose & Payouts

    Profit

    FORMul style="line-height: 2.0;"A
    RAW MATERIAL COST PER kg
    +
    Rs.3.50-4/- as COST OF PRODUTION
    +
    Rs.3 /- per ltr

    Purpose

    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 wherein all our people coming under our shelter will benefited i.e., under win to win situation.

    Payouts

    The entire buy-back agreement payouts
    is immediate payments and no credits



    Guaranteed Supply of Raw Materials

    • We will supply RAW MATERIALS consciously with minimum guarantee of 20 days in a month with required quantity.
    • The price of Raw Material will be at par with present Market Price
    • The supply of Raw Material is against payment and no credit is available
    • The minimum period of agreement is for FIVE YEARS.

    Challenge For Biodiesel industry

    • Its an agreement between our Company and the dealer in order to supply Raw Materials. Procurement of Raw Material is main challenge for all Biodiesel Manufacturers.
    • In order to come out of this challenging thresh-hold we have created a strong platform for Dealers to supply required Raw Materials continuously. .

    Basic Requirement Of Land:

    Category CAPACITY (Liter per day) Land needed (Sq. Ft) Shed Area (Sq. Ft)
    BIODIESEL (B-100) PLANT 20000 10000 7000
    50000 15000 12000
    10000 20000 15000
    20000 50000 45000

    LAND AND BUILDING

    • Land minimum 10,000 Sq. Ft.
    • Industrially converted land
    • Land shoul style="line-height: 2.0;"d be convenient for transportation
    • Approximate cost of construction Rs, 25 Lakhs

    PLANT AND MACHINERY

    • Semi automated with latest technology
    • With advanced feature
    • Cost saving technique
    • GST can be taken as input as input credit

    LAB, POWER AND WATER

    • Power: HP
    • Water: Very Minimum
    • Since it’s a Chemical Industry, needs ful style="line-height: 2.0;"ly integrated own lab with equipment

    WORKING CAPITAL

    • Procurement of Raw Material against cash
    • Entire sales under Buy-back Agreement is against Cash.
    • Raw Material – Minimum 15 to 30 days stock to be required/

    BioDiesel Miniplant Stages

    • We will take care of entire installation of PLANT.
    • We will explain to you about entire operation of installation of PLANT

    • Step-1:

    • Come for discussion
    • Discussion thoroughly about Technicality, Financial implication and feasibility of the project.

    • Step-2:

    • After due satisfaction and discussion – Signing of Agreement
    • Sign-up Non-Disclosure Agreement
    • 10% of the Cost of the plant to be paid at the time of signing of the agreement.
    • Simul style="line-height: 2.0;"taneously we opt for BANK LOAN and starts negotiate with bankers

    • Step-3:

    • 35% of the Cost of plant to be paid for the generation of Invoice of Goods and Services .
    • Soon after Second Installment we will start:
    • Preparation of Project Report

    • Step-4:

    • 45% of the cost of plant to be paid
    • Physical lift of materials for construction for plant
    • Applying for various licenses.
    • Will start installation of plant

    • step-5-Biodiesel Mini Production Unit Set up

    • step-6-Biodiesel Retail outlet

    • Step-7- After completion of installation of plant, we will train both Skilled and UnSkilled employees.
    • Step 8 – we will give satisfactory Trail Run.
    • Step 9 – We will handover Plant after ful style="line-height: 2.0;"l installation and Seven days our technical employees will observe Commercial Production.
    • Step 10 – Signing of Completion of Biodiesel Mini Plant Agreement.
    • Step 11 – You Start Production on your own.
    • Step 12 – Till Six Months you can call us for any Technical help.