Team Name Team Members

The Green Energy E-mail Contact No. School

Debasish Das

debasish.das08@iimb.ernet.in

09945531655

IIM Bangalore

Executive Summary
The Need Gap: Govt. all over the world is looking forward for a sustainable energy source 80,000 villages in India are deprived of electricity Approx 25, 000 villages in India are facing power cuts Discontinuous supply of electricity in small scale industries as well as in big cities Approx 28.6 lakh small scale industries are there, which get electricity at higher tariff y There are many hospitals and other sectors which require a continuous supply of electricity y Growing green house gases in the atmosphere is the headache of the time These are issues which are scaling up day by day which demands for a really innovative sustainable source of energy.
y y y y y

Product/service description: We five member team of people after working a long 3 years of research have successfully designed the worlds first molecular zero waste electricity generation plant (see exhibit) having an efficiency level of 80-90% in contrast to 50%(highest level of efficiency achieved till now) which is currently under patent process. The project uses cellulose derived from sugarcane bagases (major), agricultural & forest residue, industrial & municipal waste as input to produce hydrogen gas and bio-diesel which in turns produces large amount of electricity at per unit cost of INR 1.39 as opposed to INR 5 in todays methods. The project uses some (trade secret) innovative concepts (IT, Chemistry, Electronics and Mechanical) and materials (hydrogen selective membrane, CO2 absorption rod etc.) to have a safe, low cost, and efficient way to produce electricity. The overall process generates by-products for shoe industries, chicken industries and water, thus, making the process a zero waste pollution free highly profitable venture. Benefits: Domestic level, small as well as large scale Industrial tariff becomes less. Electricity generation is eco friendly because CO2 produced is consumed by our project. There is no emission of SO2 & nitrogen dioxide, as in other power plants. Low product costs in the market as electricity contributes around 20% of the cost for many manufacturing plants thus controlling inflation e. Rural people with prosper with their increased earning a. b. c. d. Market description and size: Despite an ambitious rural electrification program, 400 million Indians still have no access to electricity. 80 percent of Indian villages have at least an electricity line; just 44 percent of rural households have access to electricity.

In India Jharkhand, Bihar, Uttar Pradesh, Orissa, Uttaranchal, West Bengal etc are some of the states where significant number (more than 10%) of villages are yet to be electrified. Sugar industries are facing electricity crisis of approx 2 to 3 hrs per day. All these villages, towns & industries provide a huge market to our project. Target customers: - Electricity is a basic need for all of us and the continuing power cuts and unavailability of power is making it a service for all. Adhering to the objective of the project we will concentrate rural India and small scale industries for 2 years. Since the -3 profitability of the project is 38% we will expand the plant to urban areas of India. In the longer run we have planned to make our presence in the international level. Competitive analysisIn our project we are keeping domestic as well as industrial tariff very low. Due to early establishment of our unique plant there will be no competitor of us in the market. Other power plant cannot provide electricity at such a low cost. More ever we can establish our plant wherever we can get proper amount of inputs. So we can establish our plant even at the place where, there is already a power plant, because that can affect our amount of inputs. In contrast already established plants cannot move due to many reasons making electricity industry highly inefficient. The support from the local government to establish our plant at various locations will enable us to get maximum amount of input without any transportation & labor cost. Positioning analysis - In the initial state we will start with a single plant of 400 kwh at Saharanpur (U.P.) as this is the location where we will get our inputs and also we can give back to those big farmers to produce agricultural products at their optimal level. Since there are approx 571 sugarcane industries in India till now, so we target approx 200 plants in the coming 10 years which have the potential to cover 70% of country. Distribution and revenue model: As its govt. rule to transfer all power generated to govt. made central grid and its the method that govt. will pay back the amount to the power suppliers after collecting revenue through govt. electric office. We will have the same process with a difference is that instead of supplying the power to govt.s central grid we will transmit it to the Govt.s local subsystem where the end consumers exists as the plant is movable i.e. it can be installed anywhere. (Exhibit below says our power distribution and pricing strategy) Barriers to entry1. Initial Investment and our trade secret process 2. Government regulations - Permission from government to provide complete electricity to the towns & villages of an area may be difficult. Requirements for licenses and permits may raise the investment needed to enter a market, creating an effective barrier to entry.

3. Patent Financials: 1. 2. 3. 4. 5. 6. 7. 8. The initial investment is approx 2.5 crores INR raised from a co-operate bank Sustainable ROI of 38% Payback period of 1.5 years Funds will be raised from a large bank keeping land as mortgage and our patent as credibility A single 400 kwh plant makes 183.7 lakhs of earning per year after with an utilization of 80% of the plant Working capital requirement is 59.87lakhs per year per plant Per unit generation cost is INR 1.39 only We require only 385 tons of bagases to supply electricity 24*7 for whole year

Forecasted P &L ( Figures In Lacs) Year Year 1 2 100.7 100.7 59.87 58.91 40.87 41.83 13.30 17.05 54.17 58.88 25 25 0 3 0 0 29.17 30.88 2.479 2.625 26.69 28.25 20.15 20.15 46.84 48.4 Year 3 100.7 56.35 44.4 22.96 67.36 50 3 0 14.36 1.22 13.13 20.15 33.28

Revenue Operational Costs Operational Profit Other Incomes Total comprehensive income Principal Paid Back R &D Carbon Trading Net Comprehensive Income Tax Net Profit Subsidy Income to Balance sheet

Achievements till today: 1. A prototype of the plant 2. Patent process is in its 2nd stage out of 5 3. 3 acres of land purchased at Saharanpur

EXH B T
1. We extract complete 60% of cellulose from bagases by our secret chemistry methods which also gives concentrated lignin 2. he 80-90% efficiency is achieved by the membrane, absorption rod and the plant itself being molecular and usage of two directional turbine 3. t any instance of time the storage tank ensures that there are 5 litres of hydrogen in the tank above which the reaction process hibernate by a digiti ed process thus ensuring safety. 4. In conversion plant also we have our secret method in such that it divide the algae thus collected into bio-diesel and food for chickens. 5. Half of the water generated transformed for recycling and rest were to be sold.

Rular Consumer Smal Sc. Industries Large Sc. Industries

Power Distribution (out of 400kwh) 200 140 60

Mi n 0 0 0

Max Allowed 400 400 400

Price Charge 2 3 5.5

Min 1.427 1.427 1.427

Max Allowed 2.35 3.14 7

Si our proj t generates electricit at per unit cost of INR 1.427, we will have a wi e spread of pricing strategy. Being a social venture we will charge much less than the prevailing market price and we are about charge in accordance with the place of distribution. nd above table also show how we will divide our generated electricity.