i

Innovated By:


PRIYANSHU GOYAL
MBA I YR, NMIMS
priyanshu.goyal@nmims.org
09819366086





Launching BioSpeed
COMPANY
NAME N LOGO
INNOVATIVE INDIA ( i )


i
Innovated By:

PRIYANSHU GOYAL
MBA Final Yr (NMIMS)
B.Tech Biotech (JNU)
goyalpriyanshu@gmail.com
+91-9819366086



Launching BioSpeed
COMPANY
NAME N LOGO
INNOVATIVE INDIA ( i )

Sector of Business Plan: Biotechnology/ Energy Sector
Innovative India


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CONTENTS


About Us
Social Relevance of the Busi ness Plan
Product Description
Need for the product
R&D
Production
Strategy
Marketing
Finance
Competition
Risks

















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About Us

Company Name: Innovative India

Logo:

Product Name (Brand): BioSpeed

Vision
Our vision is to make India an oil independent economy.

Mission
Innovative India is determined to develop globally competent technologies and
implement them i n Energy sector. It will provide the country wit h the best alternative
source of energy thus mai ntai ning energy supply, saving foreign reserves, solving
environmental problems and creating huge direct and indirect employment.

Development of the concept
The concept of using vegetable oil as a fuel dates back to 1895 when Dr. Rudolf Diesel
developed the first diesel engi ne to run on vegetable oil. With increase in the demand of
petroleum products the prices of petrol & diesel are i ncreasing world wide. This trend is
expected i n years to come as the resources are also depleti ng.
Innovative India has started working on the concept in 2004 and currently is
under mentorship of a Venture Capitalist.

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Company Overview
Innovative India plans to be a biofuel produci ng company i nitiating from biodiesel
production at small scale to a range of bio fuels production at the i nternational level
creating a scientific network with potential partnerships and hatching opportunities in the
market.
The worlds demand for oil is increasing exponentially today, so with a strong research
oriented technical support and management, the company will penetrate the Indian and
international market of bio fuels with the advantage of bei ng among the first entrants in
this sector in India. Globally, though there are very few production units, none of them
produce similarly, so all players have different costi ng per liter and thus i nvite players
with new innovations to give less costi ng mechanism.
With some of the optimal techniques developed by us, we intend to provide the same at
a competitive price to the people worldwide.

Business Aspects
Innovative India has following busi ness aspects to perform:

(i) Development of an integrated optimized process of production.
(ii) Development and commerciali zation of Biodiesel.
(iii) Marketing of Biodiesel and other end products i n the Indian and global market.





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Management Team Qualifications
Innovative India is founded by a group of indi viduals who bring a strong mi x of
managerial and technology know-how. The team also combines with prior experience,
technical expertise in marketing, finance and technology from premier B-school &
technical institutes of India. Together the indi viduals work as a close knit team.
Team Member 1: MBA II yr Marketing,
PGDIEM, B.Tech Biotech
Team Member 2: MBA II yr Finance,
PGDBM, BMS
Team Member 3: PhD. II yr Biotech,
B.Tech Biotech
Team Member 4: M.Tech II yr Biotech,
B.Tech Biotech










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Social Relevance of the Business Plan
Employment generation @ 311 man days/ hectare i n Jatropha plantation sector
i.e. employment potential for 1 person per hectare for 1year & employment
opportunities to rise to 11 million by XI plan when area coverage extends to 11
million ha to achieve 20% blend.
Income potential of Rs 15000/ha for farmers from 4
th
year onwards on investment
of Rs 30000/ha (without land cost) assumi ng 2500 plants/ha, seed yield @
2Kg/plant and sale of seeds @ Rs 5/Kg.
India imports 70 per cent of its oil requirement. In 2004, Indias crude oil import
was in excess of US$ 30 billion. Even if one-tenths of the oil import is substituted
with bio-diesel, it is worth approximately US$ 3 billion a year at 2004 oil prices.
Hence reduces financial burden.
Environmental Reasons:
Positive ecological benefits i n terms of lending support to biodiversity, especially
since degraded lands are i nvolved.
Increase in the green cover as result of plantations would check soil erosion and
retain moisture and soil nutrients.
The graph below shows how the % increase in blendi ng decreases the level of
emissions:
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Product Description
The use of Vegetable oils (Bio Diesel) for engi ne may seem i nsignificant today.
But such oils may become in course of time as important as Petroleum and Coal tar
products of the present time - Rudolf Diesel, 1912
Biodiesel is the name for a variety of ester-based oxygenated fuels derived from natural,
renewable biological sources such as vegetable oils. Biodiesel operates in compression
ignition engines like petroleum diesel thereby requiring no essential engine
modifications. Moreover it can mai ntain the payload capacity and range of conventional
diesel. Biodiesel fuel can be made from new or used vegetable oils and animal fats.
Unlike fossil diesel, pure biodiesel is biodegradable, nontoxic and essentially free of
sulphur and aromatics.
Potential Varieties of Bio Diesel oil seeds:
Jatropha curcas (Jatropha)
Pongamia pinnata (Karanja)
Azadirachta indica (Neem)
Madhuca indica (Mahua)
Jojoba
Kusum
Sal
Smarouba
According to the Indian conditions, Jatropha curcas is the best source of oil seeds.
Floweri ng twig of Jatropha curcas with fruits Jatropha curcas seed

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Need for the product
1. Energy Consumption Worldwide:








2. Energy Consumption in India










Primary
Energy
Consum
ption
Population Per
Capita
Energy
Consump
tion
Million
tonnes
oil
equivale
nt millions Kgoe
USA 2298.7 292.6 7856
China 1204.2 1,300.0 926
Russian Federation 656.9 144.6 4543
Japan 504.9 127.7 3954
India 350.4 1,070.8 327
Germany 332.1 82.6 4021
Canada 302.3 31.6 9566
France 259.6 60.0 4327
United Kingdom 225.4 59.3 3801
South Korea 211.8 47.5 4459
Italy 181.0 58.0 3121
Brazil 180.0 181.4 992
World Average 9800.8 6313.8 1552
Consumption in
million tonnes of oil
equivalent
% of total
Oil 113.1 32.3
Natural Gas 26.9 7.7
Coal 190.6 54.4
Nuclear 4.1 1.2
Hydro 15.7 4.5
Total 350.4 100
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3. Crude Oil Imports
Now if we look at the imports of the crude oil, it has increased over the period. In
future there wi ll be depletion of the oil reserves which makes it mandatory to look
out for the newer fuels.
0.00
20.00
40.00
60.00
80.00
100.00
120.00
1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-
05(P)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Crude Oil Import (MMT) Import Dependency (%)

















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Optimization of oil extraction process
0
5
10
15
20
25
30
35
Jatropha Pongamia neem
Samples
%

o
f

o
i
l

e
x
t
r
a
c
t
Oil expeller
Polytron
Soxhlet
R&D
The company has done various researches at two levels in last 3 years (2004-07):

1). Input level
By doing various trial and error research studies, the company has reached to the result
of usi ng Jatropha curcas as the source of oil seeds and the best way of oil extraction is
solvent extraction process with the help of Soxhlet.
The fi nal outcome of the study was:









Benefits of Jatropha:
Restoration of degraded land over a period of time.
Organic matter that can be used as organic fertilizer particularly in remote
areas.
Located production and availability of quality fuel.
Other Industrial and pharmaceutical uses from the leaf and seed extracts.
Rural employment generation

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2). Process level: Various researches were done for the optimi zation of the production
process and the outcomes were:
a). Discovered Optimal reaction time (ORT) to obtai n high conversion
b). Discovered the Optimal Socket Diameter (OSD)
c). Discovered Optimal r.p.m. for Oil Expeller
d). Discovered Optimum reactant ratio (ORR) of methanol per mole of vegetable oil.

I. Optimal reaction time (ORT)
Transesterification reactions were carried out between Jatropha oil and methanol i n the
presence of NaOH and the conversion was studied after fi xed time intervals, time
intervals were varied from 5 mi n to 20 min.

Tiime v/s Conversion
0.78
0.8
0.82
0.84
0.86
0.88
0.9
0.92
0 50 100 150
Time (min)
C
o
n
v
e
r
s
i
o
n


We can see from fig. that conversion will increase till 60 min after that conversion is
nearly constant
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II. OSD n Optimal RPM
1. Oil extraction of J atropha curcas using oil expeller at 15 inch socket inner

2. Oil extraction of J atropha curcas using oil expeller at 10 inch socket inner
diameter



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3. Oil extraction of J atropha curcas using oil expeller at 6 inch socket inner
diameter

III. Optimum Reactant ratio (ORT)
Transesterification reactions were carried out between Jatropha oil and methanol
in the presence of NaOH and the conversion was studied at different reactant
ratio.
Reactant Ratio v/s Conversion
0.74
0.76
0.78
0.8
0.82
0.84
0.86
0.88
0.9
0 5 10 15 20 25 30
Reactant Ratio (Moles MeOH/Moles oil)
C
o
n
v
e
r
s
i
o
n

We can see from fig. that conversion will i ncrease till reactant ratio 13 after that
conversion is nearly constant.
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Production

The production department is divided according to the processes that are performed
duri ng the manufacturing of the BioSpeed. The production department works i n three
shifts for the production of the 2000 liters of the BioSpeed.

The important process for the production department is as follows.








The process of obtaining biodiesel is simple and requires only three steps as follows:

1. Oil extraction from oil expeller:

Fresh seeds are dried, till the moisture content is below 5 %
Cleaning of seed to remove sand particles, otherwise increase impurities in oil
and also can damage the oil expeller
Heat the oil expeller at between 60-70
o
C
Seeds are put i nto i nlet of oil expeller and we will get two thi ngs: crude oil &
cake.
Crude oil gets settled down in 12 hours and then the crude oil is filtered
Filtration is done with the help of vacuum.
Filter aid celite is used to absorb the moisture present i n oil and filter paper to
remove impurities.
After filtration, the filtered oil is called Jatropha oil.

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2. Trans-esterification of the extracted oil:

Known quantity of Jatropha curcas oil (100 ml for each run) is taken i nside the
reactor and heated at about 70
o
C.
Preheati ng is used to remove unwanted moisture present i n oil.
Base catalyst (NaOH) is dissolved i n alcohol (MeOH).
Once the oil temperature reached 70
o
C, alcohol solution (containing dissolved
catalyst) is added to the reactor and equilibrium temperature is maintained
During the reaction alcohol gets vaporized, so prevent this condenser is used to
condense the alcohol vapor and reflux it back into reactor.
Condenser is also helpful i n mai ntai ning atmospheric pressure inside the reactor.
Two phases (having different density) are found as a result of trans-estrification.
Separation is done using a separati ng funnel (separation takes around two
hours).
Upper layer consists of Biodiesel, alcohol and some soap (formed as result of
side reaction saponification- free fatty acids gets converted to soap).
Lower layer consists of glycerine, excess alcohol, catal yst, impurities and traces
of un reacted oil.

3. Purification of upper layer (to obtain biodiesel) was done in two steps:

Removal of alcohol - by keeping mixture at elevated temperature of 80
o
C i n
distillation process.
Removal of saponified products by washi ng with warm water. Water is immiscible
with biodiesel, hence can be separated. Remai ning water is removed by
distillation process. Finally we get pure biodiesel.





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Trans-esterification Reaction (R1, R2, and R3 are long chai ns of carbons and
hydrogen atoms, sometimes called fatty acid chains):









R
1
, R
2
, and R
3
are fatty acids (could be different, or the same), and depend on the type
of oil. The fatty acids involved determi ne the fi nal properties of the biodiesel (cetane
number, cold flow properties etc.).

Flow Sheet for Biodiesel Production Process:














Oil NaOH MeOH
Trans - estrification
Seperation
Upper Layer Lower Layer
Evaporation of MeOH Evaporation of MeOH
Glycerine Washing
Bio-diesel
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Strategy

The company has planned the startup strategy in four phases:

Phase I: Analysis of existing oil market & other substitutes, checki ng out the
opportunities & risk involved in enteri ng into a new venture and seeking out the best
source of raw material. We have successfully completed this phase and moved to
second phase.

Phase II: Optimization of the production process, in this aspect a lot of research has
been done and also we have excellent results i n our hand.

Phase III: Setti ng up a production unit of 2000 liters a day.

Phase IV: Industrial scali ng to 10,000 liters/day in first 5 years.










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MARKETING
Potential customers:

Oil companies in India, both public & private;
Government;
Foreingn Oil Companies.

Why will they purchase BioSpeed:

The National Mission Bio-diesel Programme envisages achieving 5 per cent bio-diesel
blend in diesel in nine states followed by a pan-India rollout. Later, the bio-diesel blend
percentage will be i ncreased to 10 per cent across the country and further towards more
than 10 per cent blend in the entire country.

Furthermore, India imports 70 per cent of its oil requirement. In 2004, Indias crude oil
import was in excess of US$ 30 billion. About 70 per cent of the total petroleum fuel
consumed i n India is diesel and 30 per cent is petrol. Even if one-tenths of the oil import
is substituted with bio-diesel, it is worth approximately US$ 3 billion a year at 2004 oil
prices.

Sales Strategy:

B2B sales
Meeting ASTM(American society of Testi ng & Materials) and German biodiesel
standards to create credibility in Indian & forei gn market;

The recent notification of the Bio-diesel Purchase Policy by the Ministry of Petroleum
and Natural Gas provides for purchase of bio-diesel by oil marketing companies at a
reasonable price with effect from January 1,2006, at about 20 purchase centres in 12
states. The blending of bio-diesel at a maximum of 5 per cent will be undertaken i nitially
at these 20 centres depending on its availability.
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Marketing Department Structure:

The marketing department has a team of four members. The 3 executives report to the
marketing manager. The following are the acti vities that each one of them will handle:
Business Development:
The busi ness development executi ve is required to analyze the need from the market.
His prime job is to look out for newer markets for the Bio-diesel fuel. The business
development executi ve works i n close association with the R&D department of the
organi zation. He is the intermediary between the client needs and the R&D team
Relationships management:
This person has to mai ntai n the existing clients. His prime responsibility i nvolves the
need classification of the existi ng customers. He is required to generate new business
opportunities from the existi ng customers.
Sales:
This person is required to take care of the delivery end of the SCM. He is required to
look after the timely servicing the customer orders, arrange for the transportation of the
Bio-diesel to the concerned party.
Marketing Manager:
The marketing manager co-ordinates the acti vity of the three executives. He is the one
who along with the busi ness development executive analyses the market potential. The
new segments which can be targeted for the BioSpeed. This analysis is then converted
into the production target. The marketi ng managers chief acti vity is to convert the sales
projection into actual production requirement so that the product is readily available for
all the demands.
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FINANCE
1. Cash Flow along the value chain:









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2. Investments Requirements for start up of 2000 liters daily production:

2.1 Machine Set up cost for 2000 liters daily production:
Particulars Rs. in lakhs
1. Machi nery 25.0
2. Engineeri ng Fees 2.5
3. Preliminary Expenses 0.5
4. Utilities 4.0
5. Misc 3.0
TOTAL 35.0


2.2 Working Capital requirements Rs. 40 lacs

Total investment requirement in first year Rs. 75 lacs
Capital Investment (from proprietors) 50 lacs
Loan Requirement 25 lacs








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3. Product Costing:
100 kg of seed gi ves 30 kg of oil and 70 kg of oil cake.

In Transestrification Process, we get
30 kg of oil + 3 kg of methanol + Catalyst
30 kg of biodiesel + 3 kg of glycerol
Calculating the cost per liter of Biodiesel using above equation:
Cost (Rs) Assumptions /
Remarks
Cost of Seeds (100 kg) 800 @Rs 8/Kg
Cost of Collection & Oil
Extraction
100 @ Rs 1/Kg
Trans-esterification Cost 120 @ Rs 4/kg
Post Trans-esterification Cost 30*2 = 60 @ Rs 2/Kg
Cost of Bio-diesel 1080
Less Byproduct (oil cake) 70*2=-140 @ Rs 2/Kg
Less Byproduct (Glycerol) 3*35= -105 @ Rs 35/Kg
Net Cost of Biodiesel (for 30 kg) 835
Net Cost of Bio-diesel (per kg) 27.83 Specific Gravity of oil
0.85
Net cost of Bio-diesel (per liter) 23.66 27.83*0.85
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4. Important Assumptions & Notes
Selling Price is taken at Rs 35/liter for I year & is expected to i ncrease by 5% yoy
The production would be carried for 300 days in a year in continuous process.
Production capacity of 2000 liters per day would be added every year from
second year.
10 workers would be required for running production in a machine
Wages of worker is taken at Rs 48,000 PA.
Electricity expenses is taken at 2.4 Lakhs PA per machine
One factory supervisor is required per machi ne. Salary of the supervisor would
be 3.6 Lakhs P.A.
Machi ne Repair & Maintenance are expected to be 1 Lakh PA per Machine.
Other miscellaneous expenses are expected to be 1 lakh PA per 2000 liter / day
capacity.
Transportation cost is taken at 6 Lakhs PA per 2000 liter/day capacity.
Rent Expenses is taken at 4.8 Lakhs PA per 2000 liter/day capacity
1 Relationship Officer, 1 Sales Person and 1 Admin Manager is required per
2000 liter/day capacity.
Salary of Relationship Officer = Rs 2.4 Lakhs/PA
Salary of Sales Person = Rs 1.44 Lakhs/PA
Salary of Admin/Mgt. Staff = Rs 3.6 Lakhs/PA
5 % inflation in salary of Relationship officer, Sales Person & Admi n Staff yoy.
Tax Rate is taken at 30 %.
P & M is written off in a 5 year period.
Working Capital requirement is taken at 40 Lakhs for the first 2000 liter/day
capacity and 20 Lakhs for every subsequent 2000 liter/day capacity.
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5. Projected P&L account for 5 yrs:
P - 01 P - 02 P - 03 P - 04 P - 05
Price 35.00 36.75 38.59 40.52 42.54
Sales (No. of Units) 600,000.00 1200000 1800000 2400000 3000000
sales (Value) 21,000,000.00 44,100,000.00 69,457,500.00 97,240,500.00 127,628,156.25

Cost
Production Cost
Material Cost 14,196,000.00 29811600 46953270 65734578 86276633.63
Direct Cost 1,400,000.00 2,940,000.00 4,630,500.00 6,482,700.00 8,508,543.75
Wages 480,000.00 1008000 1587600 2222640 2917215
Electricity 360,000.00 756000 1190700 1666980 2187911.25
Factory superv isor 360,000.00 756000 1190700 1666980 2187911.25
Machine Maintainence 100,000.00 210000 330750 463050 607753.125
Other Direct Cost 100,000.00 210000 330750 463050 607753.125

Transportation Cost 600,000.00 1260000 1984500 2778300 3646518.75
Rent 480,000.00 1,008,000.00 1,587,600.00 2,222,640.00 2,917,215.00

Manpower Cost

Relationship Off icer 20,000.00 22,000.00 24,200.00 26,620.00 29,282.00
No. Of Relationship Off icer 1.00 2.00 3.00 4.00 5.00
Salesmen Total 240,000.00 528,000.00 871,200.00 1,277,760.00 1,756,920.00

Sales Men Salary 12,000.00 13,200.00 14,520.00 15,972.00 17,569.20
No. of Sales Men 1.00 2 3.00 4 5.00
Sales Men Salary Total 144,000.00 316,800.00 522,720.00 766,656.00 1,054,152.00

Admin/Mgt. Staff 30,000.00 33,000.00 36,300.00 39,930.00 43,923.00
number of Admin/Mgt. 1.00 2 3.00 4 5.00
Admin/Mgt. Total 360,000.00 792,000.00 1,306,800.00 1,916,640.00 2,635,380.00

Administartion Cost
No. of Offices 1.00 1.00 1.00 1.00 1.00
Av g. Off Maintainance Cost 100,000.00 150000 200000 250000 300000
Total off ice Cost 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00

Depreciation 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 2,500,000.00

Cost of Loans
Fund Av ailed 2,500,000.00 5500000 7500000 5500000 2500000
Cost of Funds (In %) 0.12 0.12 0.12 0.12 0.12
Cost of f unds total 300,000.00 660,000.00 900,000.00 1,140,000.00 300,000.00

Profit/Loss 2,680,000.00 5,633,600.00 9,000,910.00 12,671,226.00 17,732,793.13

Tax 804,000.00 1,690,080.00 2,700,273.00 3,801,367.80 5,319,837.94

Net Profit/Loss 1,876,000.00 3,943,520.00 6,300,637.00 8,869,858.20 12,412,955.19
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6. Additional Income Possible: According to Dr. Srikanta. K. Panigrahi, Chairman,
Indian Society of Remote Sensing, Delhi Chapter, one of the potential options is
switchi ng fossil fuels to environment friendly tree based oils (TBOs). The carbon trading
potentials for biodiesel from TBOs in India. He has a procedure for a project to earn
carbon credits for addition sources of revenue under CDM.

7. Projected Cash flow for next 5 yrs:
Projected Cash Flow Statement
Capital Cash Flow
Particulars P - 01 P - 02 P - 03 P - 04 P - 05
Set Up Expenses 3500000
Working capital Requirement 3839000 4234000 4628727.5 5088203 5465151.031
Expansion expenses (Plant & machinery) 2500000 2500000 2500000 2500000
Total Capital Outflow 7339000 6734000 7128727.5 7588203 7965151.031
Operating cash Flow
Particulars P - 01 P - 02 P - 03 P - 04 P - 05
Cash Inflow
Revenue 21000000 44100000 69457500 97240500 127628156.3
Cash Outflow
Cost Of production 16076000 33759600 53171370 74439918 97702392.38
Cost Of sales & Distribution 984000 2104800 3378420 4822716 6457590.75
Administration Expenses 460000 942000 1506800 2166640 2935380
Interest expenses 300000 660000 900000 1140000 300000
Tax 804000 1690080 2700273 3961367.8 5339837.938
Total cash Outflow 18624000 39156480 61656863 86530641.8 112735201.1
Net Operating Cash Flow 2376000 4943520 7800637 10709858.2 14892955.19
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow -7339000 -4358000 -2185207.5 212434 2744707.169 14892955.19
Terminal Value 101272095.3
Total cash Flow -7339000 -4358000 -2185207.5 212434 2744707.169 116165050.5
Discounted Cash Flow @ 12 % -7339000 -3891071.4 -1742034 151206.325 1744311.026 65915169.33
NPV 54838581.2
74340008 4224000 2054000 -125000 -2304000 -12986000
12986000
Cash Requirement 132457200
7434000 4644000 2474000 169000 -2136000 75159772.51
-7434000 -3771428.6 -1637436.2 88972.531 1464233.653 82528377.66
71238719
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Capital Investement 5000000 1500000
Loan Requirement 2500000 3000000 2000000
Loan Repayment 2000000 3000000 2500000
Total Loan Outstanding 2500000 5500000 7500000 5500000 2500000 0

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8. Projected Balance sheet for next 5 years:
Estimated Estimated Estimated Estimated Estimated
Particul ars Yr Endi ng Yr Endi ng Yr Endi ng Yr Endi ng Yr Endi ng
31.03.2009 31.03.2010 31.03.2011 31.03.2012 31.03.2013
SOURCE OF FUNDS :

Capi tal
Capital investment 5,000,000 6,500,000 6,500,000 6,500,000 6,500,000

Profit (Transferred from P & L) 1,876,000 3,943,520 6,300,637 8,869,858 12,412,955

LOANS AND ADVANCES

Term Loan 2,500,000 5,500,000 7,500,000 5,500,000 2,500,000

TOTAL : 9,376,000 15,943,520 20,300,637 20,869,858 21,412,955

APPLICATION OF FUNDS

Fi xed Assets
Plant machinery & other Fixed Assets 3,000,000 4,500,000 5,500,000 6,000,000 6,000,000

Current Assets
Investement in Current assets & WC 6,376,000 11,443,520 14,800,637 14,869,858 15,412,955


TOTAL : 9,376,000 15,943,520 20,300,637 20,869,858 21,412,955

Note:

Business Assumed to start from 1st April 2008

Current Assets & EC to include - Stock in hand, Debtors etc.




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Competition

Competition is always there in every industry but due to the availability of a very big
untapped market, there would be no problem.
Recent trends are indicative of tremendous increase in the production of Commercial
Vehicles and the consumption of Diesel. The import bill is mounting and the availability
is going down. New sources will have to be developed and new units have to be put up
in the next decade to manufacture Bio Diesel which will substitute imported diesel in
large quantities to meet the domestic demand where by causi ng smaller drain of our
limited sources of foreign exchange.
So the biodiesel shows a good potential and moreover, the optimi zation techniques
developed by us wi ll enable the company to benefit from the cost effecti veness of the
process mechanism.
Risks

Here, the risks are of following 2 ki nds:
(i). Scarcity of raw material: There can be a scarcity of the raw material i.e. seeds of
Jatropha curcas in the market to fulfill the requirements of the production units of
biodiesel. But due to the government and NGOs efforts, we believe in the next 3 years
there would be sufficient supply of oil seeds.

(ii). Development of new substitutes: Substitutes like hydrogen, wind energy, solar
energy and many more are possible, but again the market is so big to absorb all and
there are opportunities of export also.

(Total words 3300)
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References
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Symposium "Jatropha 97" Managua, Nicaragua
3. Antoli n G and Ti naut FV. 2002. Optimi zation of biodiesel production by sunflower
oil transestrification. Bioresource Technology 83:111-114.
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Declaration
The business plan submitted is originally developed by me.
Place - Mumbai
Date January 12, 2008