URJAA

A Ray of Hope
A Biogas Business Plan
Group Number 2: Ashish Nigam (069) Avishek Ganguly (070) Brijesh Solanki (071) Chetan Vartak (072) Gaurish Natekar (073) Lahar Gursahani (075)

Vision
Inspiring better lives with economic and unique available resources of mother nature

Mission Statement

Our mission is to provide integrated energy solutions to our customers in an environmentally friendly and socially responsible manner. In other words, we will strive hard to provide power in a way that is sustainable in the long term. We believe it is essential not only to make profits but also to care about people and protect the environment. We will lead by example through a commitment that empowers our customers ensuring the excellence at all levels of our operations, performance, products and services.Simultaneously,actively contribute towards welfare of society and social uplift of the under privileged section of the community

The Team

Business Model
Fixed Dome Biogas Plant Portable Dome Biogas Plant Products Biogas generators Business Customers Agricultural Customers Individuals

Market

Biogas Plant Sales Product Serving Charges Revenues Product Service Providing Revenues

Opportunities

The overall impact of the biogas technology in terms of environmental conservation is considerably beneficial as the process provides an environmentally sound means of managing animal and plant wastes. The substitution of fuel wood by biogas leads to three main benefits:
1. 2. 3.

It slows down the deforestation trend, thus achieving numerous environmental benefits. It generates less air pollution by the combustion of biogas instead of wood or animal dung. We get natural fertilizer (manure) from biogas sludge, which is why biogas offers a safe and clean source of alternate energy.

Market Summary

The following factors are contributing to the sharply rising demand for the conventional energy supplies in India:

Industrialization Urbanization Population growth Shift in consumer demands towards energy intensive products
State Power Estimation (MW)

Sourcewise and Statewise Estimated Potential of Biogas Power in India as on 31.03.2011

Gujarat 1221 Haryana 1333 Karnataka 1131 Kerala 1044 Madhya Pradesh 1364 Maharashtra 1887 Punjab 3172 Rajastha 1039 Tamil Nadu 1070 Uttar Pradesh 1617 All India Total 17538 (Source: Ministry of New and Renewable Energy)

Customer Requirements to Design Characteristics

The

listed customer requirements are listed and are matched with the design specifications of the product The following notations are used to show the relations: + - - - Positive ++ - - - Strongly Positive - - - - Negative -- - - - Strongly Negative

Design of the Cylinder

Customer Requirements Non Poisonous The Gas Less Smell

- -- +

- --

Heats quickly
High Temperature of the Flame Easy to use Easy to detect Usage Easy to store

++ + + ++
++ + + ++ ++ ++ ++ + + +

Containers should not leak

Regular Supply Environment Friendly Doesn't break when dropped Not too heavy -- ++

+ +
+ + + + ++ +

Flow of the gas

%of Oxygen

% of CH4

% of CO2

% of H2S

Relationship Matrix

Material of the pipes Used

Material of the cylinder

Competitors of Bio-Gas in India

A-

Envitec Bio Gas (India)Pvt Limited, New Delhi B- Akanksha Agro Products, Karnataka

Competitive Assessment
Competitive Assessment Customer Requirements Non Poisonous Less Smell Heats Quickly The Gas Easy to use Easy to Detect Easy to Store 9 8 7 7 7 9 1 2 B A AB X AB X AB A XB 3 X X BA X 4 5

Container should not leak

Regular Supply Environment Friendly

6
6 7 9 9

X
X AB AB X

B
A B

A
ABX X

Usage

Doesnt break when dropped Doesnt burn when touched

Not too heavy

Tradeoff Matrix
Depicts

other Notations used are same as before: + - - - Positive ++ - - - Strongly Positive - - - - Negative -- - - - Strongly Negative

the impact of one design aspect on the

Tradeoff Matrix

% of CH4 % of H2S -% of CO2 %of Oxygen Material of the cylinder Design of the Cylinder Material of the pipes used Flow of the gas

+ +
++

Material of the cylinder Design

Material of the pipe used Flow

-

Target Values
% of Oxygen

of the cylinder

Units of measure Competitor A Competitor B Our Product (X) Estimated impact Estimated cost
Objective measures

% %% % 0-1 0-2 0-3 4 3

50-75 0-3 25-50 60-70 0-4 32-45 60-80 0-2 20-40 4 3 3 3 3 3

of the Gas
-

% of CH4

% of Co2

%of H2S

Financial Analysis

Financial Plan (BEP Analysis)

120

100
80 Fixed Cost Total Cost Total Revenue 40

60

20

0 0

20

40

60

80

100

120

140

160

Fixed Yearly Cost (Including installation and Maintenance) = Rs. 25,00,000 Variable Cost (Including Labour, Variable Maintenance and Logistics) = Rs. 35,000 per 1000 m3 Break Even Volume = 60,000 m3 Price (per 1000 m3) = Rs. 75,000

Pro Forma Balance Sheet

Months Sales Volume (1000 m3) Sales (1000 Rs.) Less: COGS (1000 Rs.) Gross Profit (1000 Rs.) (-) Operating Expenses Salaries and Wages (1000 Rs.) Fuel Expenses (1000 Rs.) Others (1000 Rs.) Total (1000 Rs.) (=) Profit/Loss (1000 Rs.) 2.0 2.0 1.0 5.0 5.0 5.0 2.5 12.5 5.0 5.0 2.5 12.5 10.0 10.0 5.0 25.0 10.0 10.0 5.0 25.0 50.0 50.0 25.0 125.0 -8.3 50.0 50.0 25.0 125.0 -8.3 100.0 100.0 50.0 250.0 191.7 100.0 100.0 50.0 250.0 191.7 200.0 200.0 100.0 500.0 591.7 250.0 250.0 125.0 625.0 791.7 250.0 1032.0 250.0 1032.0 125.0 516.0 1 0.2 15.0 210.3 2 0.5 37.5 213.3 3 0.5 37.5 213.3 4 1.0 75.0 218.3 5 1.0 75.0 218.3 6 5.0 375.0 258.3 116.7 7 5.0 375.0 258.3 116.7 8 10.0 750.0 308.3 441.7 9 10.0 10 20.0 11 25.0 12 25.0 Total 103.2 750.0 1500.0 1875.0 1875.0 7740.0 308.3 408.3 458.3 458.3 3532.0

-195.3 -175.8 -175.8 -143.3 -143.3

441.7 1091.7 1416.7 1416.7 4208.0

625.0 2580.0 791.7 1628.0

-200.3 -188.3 -188.3 -168.3 -168.3

Risks & Rewards

Company faces only execution and startup risks There is no market and product branding related risk for the company because the company is serving in the necessities of life which are going to be extinct in near future so the company has a great scope for its products and services. Product and Execution Risk: This is the point of concern for the company at the initial level that companies estimate may be wrong and some major changes have to make for meeting the actual requirements. The gas estimation and generation is important in this whole process of energy generation. The some initial level changes have to make for efficient production. Financial and control Risk: Company faces the risk of capital arrangement in the start of business. The management of the company is inexperienced and some control risks are exists. The major risk is of late payment.

Conclusion
Overall, the study revealed that biogas enrichment and compression system is a profitable venture for rural areas due to availability of large quantity of cattle dung. The system is recommended to establish rural entrepreneurship for the effective utilization of local biomass resources for production of biogas energy in decentralized manner and sustainable rural development.