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.