[Bio-Nile]

Business Plan

Coverage page

Names: ID:

1) Abobakr Ashraf Abdullah Mohamed. 53004

2) Ahmed Assem Mahmoud Taha. 53016
3) Ahmed Nasser Mohamed Abd El-kafi. 53023
4) Ahmed Mohamed Sameh Elsayed. 53018
5) Amir Momtaz Thabet Michael. 53048

Bio-Nile

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Table of Contents
Executive Summary........................................................................................................... 5
About us .................................................................................................................................................5

Our product ...........................................................................................................................................5

Our market ............................................................................................................................................5

Competition ...........................................................................................................................................5

Marketing plan ......................................................................................................................................5

Financial plan ........................................................................................................................................5

Future plan ............................................................................................................................................5

Company Description.......................................................................................................6
Company history

Product and service

Current status

Legal status and partnership

Industry analysis................................................................................................................. 7

Industry size

Industry structure

Nature of participants

Key success factors

Industry trends

Long term prospects

Market Analysis................................................................................................................... 9
Market segmentation and target market.

Buyer behavior

Competitor analysis

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The Economics of the Business........................................................................... 10
Revenue drivers and profit margins.

Fixed and variable costs.

Operating leverage and its implications.

Start-up costs.

Break-even chart and calculations.

Marketing Plan...................................................................................................................... 11
Overall marketing strategy.

Product, Price, Promotion and Distribution.

Design and Development Plan............................................................................... 12

Development status and tasks.

Challenges and risks.

Projected development costs.

Operation Plans................................................................................................................... 14
General approach to operations.

Business location.

Facilities and equipment.

Management Team And Company Structure ........................................... 15

Management team.

Board of directors.

Board of advisers.

Company structure.

Overall Schedule ............................................................................................................... 16

Incorporating the venture.

Completion of prototypes.
Rental of facilities.

Obtaining critical financing.

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Starting production.

Obtaining the first sale.

Financial Projections ......................................................................................................17

Sources and uses of funds statement.

Assumptions sheet.

Pro forma income statements.

Pro forma balance sheets.

Pro forma cash flows.

Ratio analysis

Appendix ....................................................................................................................................18

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Executive Summary
About Us:
Our product is biofuel made by converting the food waste through an anaerobic digestion.

Our product:
One of the problems that we are facing today is the food waste and the disposal of it.
As a team of entrepreneurs we didn't see it a problem, we saw it as an opportunity and we decided to
convert the food waste into biofuel that can make our life easier.

Our market:
Airlines always need jet fuel, and its cost is usually very expensive, and it must be of a very high
degree of purity, reaching about 100% in some cases. Our biofuel product provides the same degree
of purity at a much lower cost.

Competition:
Our product will have no competitors on the local level As no one have the technology to provide the
same product and this is a great competitive advantage.

Marketing plan:
We are Business to Business company (B2B)
The marketing plan for the product would be to advertise for the airline companies (e.g. Egypt air)
using our special experts and the marketing vice president to show the usefulness of our product for
them and the experts would express it with their knowledge and expertise to showcase the impact on
their profits.

Operational plan:
These include items such as renting the building and the warehouse, obtaining the machines hiring
the staff, etc.

Financial plan:
Our initial capital is 1,000,000 EGP, the initial cost is 890,000 EGP

Future plan:
Identify potential gas stations for growth and expansion, identify customers' problems and help in
solving it to build good customers relationships, anticipating the future will also prepare us to build off
success and respond swiftly to challenges

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Company description.
Generally our company’s main focus is to make use of wastes, especially food waste because there
are too many spoiled food from restaurants, shops and hotels and transform it into Biogas. This can
be done through the process of anaerobic digestion. Simply it’s generating biogas from the microbial
breakdown of organic wastes. Then we restore the gas in tubes and start to distribute them to airports
and gas stations.

Company History.
Our idea arose when we found that Egypt climbs the top of the highest contributing countries to food
waste percentages with 73 kilograms total annual amount of global food waste per person.
So we decided to turn this waste into a useful thing which is biogas.

Product and Services.

Our main product is Biogas which is a mixture of gases, primarily consisting of methane and carbon
dioxide, Biogas is being produced using anaerobic digester which is simply airtight oxygen-free
containers used to generate biogas. Biogas is being restored in tubes and then we will deliver it to
fuel & gas stations and airports.

Current status.
Right now we are a small startup that aims to grow in the following years and cause the location is the
first aspect of a current business situation. We decided to be near airports, hotels and gas stations so
that we started our company in the Sheraton district.

Legal status and ownership. .

Our company is a Partnership company including five partners.

Ahmed Mohamed Sameh: The Entrepreneur.
Amir Momtaz Thabet: Vice President Marketing.
Abo Bakr Ashraf Abdallah: The CFO.
Ahmed Nasser Mohamed: Vice President Information Technology.
Ahmed Assam Mahmoud: Treasurer and Controller.

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The key partnerships:
The company would have key partnerships with a distribution company for the
distribution of the product and also to get the supplies delivered to the building and
warehouse to start the recycling and production process.
The second partnership would be with the hotels in order to get the food necessary for
the production cycle.

Industry analysis:
Industry size, growth rate and sales projections:
The global liquid biofuels market should reach $153.8 billion by 2024 from $136.2
billion in 2019 at a compound annual growth rate of 2.2%.

Industry structure:
Biofuel is a fragmented industry as it is not hard to enter because it is new and not
monopolized by large firms, but it can be a concentrated industry in the future possibly
in some countries when this industry rise up and be more profitable.
There are various ways of making biofuels, but they generally use chemical reactions
and heat to break down molecules in plants and waste. The resulting products are then
refined to produce a fuel that cars and planes can use.

Nature of participants:
The most three countries that produce biofuel are United states, Brazil and Indonesia.

Key success factors:

There are five key success factors:
1-Strategic focus: (Leadership, Management and planning).
2-People and they are the most important factor of success to any project.
3-Operations: (process and work).
4-Marketing: (Customer relations and sales).
5-Finance.

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Industry trends:
Biofuel is becoming more popular because it is made from organic materials and
waste, there is practically an infinite amount of biofuels available. This may be the
biggest reason that they are getting more popularity.
As we discussed before biofuel industry will have a growth rate 2.2% by year 2024
from year 2019 and it should increase by time in the coming years after 2024.

Long term prospects:

Growing pressure to lower emissions and replace fossil fuels is leading to biggest ever
range of biofuels such as ethanol, biodiesel and bio-methanol and other green fuels.
This green transition is a critical challenge facing the world.
Biofuels are important because they replace petroleum fuels. Biofuels are generally
considered as offering many priorities, including sustainability, reduction of greenhouse
gas (GHG) emissions, regional development, social structure and agriculture, and
security of supply.

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Market analysis:
Our market is very large and growing however, it is quit concentrated in the first phase
when we will concentrate our coverage on airplanes companies only. We aim to
replace 30% of the jet fuel by our product (biofuel).

Market segmentation and target market:

We are B2B business that is a transaction or business conducted between one
business and another such as our company.
The customers represent the most important part of the business because without
them our business cannot survive for long and for that we need customer
segmentation.
We are creating value for gas stations and airports by providing them biogas, therefore
our segmentation will be:
1. Airports
2. Gas stations
First we will focus only on airports as we grow up we will target the other segment "the
gas station"
The most important customers will be airplanes companies Specially Egypt air.

Buyer behavior:
Consumers are affected by their need to the fuel every day, gas stations offer what
they need but what happens if there is a problem as lack in gas? Therefore biofuel is
the best substitute to replace regular fuel as gasoline not just replace it but in future it
can be the primary one as it preserve the environment and doesn’t harm it.
This will make our environment better and make the people satisfied by not harming
the environment and reduce costs as gasoline is expensive compared to biofuel.

Competitor analysis:
Companies that produce 4th generation biofuels:
1- Alegnol biofuels
2- Abellon for clean energies in India

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Competitive advantage of Abellon:
Abellon focuses on collecting mixed wastes such as paper, metals, plastic, glass and
convert them to be used more than one time through thermal recycling which is the
best method for recycling plastic wastes and they convert the other types of waste into
biofuel using homogenous recycling processes.
Competitive advantage of Allegnol biofuels:
Alegnol focuses on enhancing the production of algae in order to produce high
quantities of biofuel efficiently also their biofuels are EPA certified as the process
minimum amounts of carbon footprints. They have biofuel product lines ranging from
ethanol to crude oils.
Our company's competitive advantage:
Our company has developed a frequency marketing program that allows hotels and
restaurants to provide more recyclable wastes such as consumed food wastes

The Economics of the Business

This section addresses the basic logic of how profits are earned in the business and
how many units of a business’s profits must be sold for the business to “break even”
and then start earning a profit.
Items to include in this section:
• Revenue drivers and profit margins.
• Fixed and variable costs.
• Operating leverage and its implications.
• Start-up costs.
• Break-even chart and calculations.

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Marketing plan

The overall marketing strategy:

The overall marketing strategy is to advertise for airline companies a means to lessen
their costs and improve their image as people who care more about the environment
and the recycling of wastes would like to board the airlines that support the
environment and does a favor for it by getting rid of these wastes even if in reality their
they just saw as a more profitable choice than normal fuel that damages the
environment.
So in order to advertise to them we would approach the company with the product and
showcase the amount of costs they incur and how much they could with ours.
And finally showcase how an ad campaign by the airlines that would buy our product
showcase to the people and their own customers that they have started to invest in
biofuel which will give them a great reputation as they would showcase that their taking
part in the help of creating a great and clean environment and doing their part.

The four P’s:

The product would be a fuel that would basically recycle food wastes and give fuel in
return that would replace 30% of the necessary fuel, however we offer more than just
that we offer a better and cleaner environment, with a solution to a massive problem
the country is suffering from. For the airports the product would reduce a good amount
of the costs that they have to pay for fuel about 30% of it and an advantage of having it
right next door and always present in case of any urgency makes the product attractive
and hard to refuse.
The place for the company would be in a place right between Cairo airport and the
hotels that are near it so that we could be close to both the suppliers and customers
and reduce costs of transportation.
The price would be below that of other companies that supply the airport or airlines
with fuel since we have less costs and to make the product attractive.
The promotion for the product would be to advertise for the airline companies (e.g.
Egypt air) using our engineers and the marketing vice president to show the usefulness
of our product for them and the engineers would express it with their knowledge and
expertise to showcase the impact on their profits and to clear any skepticism around
the use of the product.
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Design and development plan
Product design takes a lot of time and effort. It is important to target the designed
program to reduce time and costs and plan for its successful completion within the
allocated resources.
In a product design plan, there are many activities to be first recognised and then
coordinated.
The plan begins with the product design specifications.

The properties of biofuels as a fuel vary depending on its composition, and the fuel
used is under strict control to avoid negative effects on the environment and engines.
An important consideration in combustion efficiency is the ignition delay in combustion,
which is affected by the adopted compression ratio, which in turn is related to the type
and quality of the fuel used. Factors such as the length of the hydrocarbon chain,
branching, and degree of saturation affect its formation; Hence, quality control is
important to ensure efficient combustion and to reduce emissions into the atmosphere.
In the specific case of biofuels, certain physical and chemical properties have a
significant influence on the ignition and combustion process and the formation of
pollutants when a biofuel is used.
In biofuel product design:
Important marketing factors are
 The customer can reach us mainly through a pre-contract
 As a competitive advantage we are the only company that
produces biofuel in Egypt
Important technical factors are
 raw materials (food waste)
 Costs will be
1) Cost of acquiring food waste
2) Cost of converting food waste into biofuel
 The quality is extremely high
 Our team of experts are the best in their field

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Development status and tasks
Our product will be ready in 6 months, during that period we will be obtaining

 Building
 Warehouse
 Machines
After that we estimate to produce 150000 gallons per month.

All of that can't be done without our professional experts.

Challenges and Risks

We expect that there will be no problems in the design and development of our products,but we
expect that there will be a problem in getting the approval government for our product and that it will
take some time as this is something totally new for the Egyptian market and to solve this problem we
hired the best lawyer in Egypt.

Our copyright will stop others from copying our product.

There is no company in Egypt have our technology.

The Risks will be

1) Failure to obtain government approval

2) The new entrant of an international company in our industry

Projected development costs

Costs of acquiring the project site and improvements thereto, of constructing the improvements and
acquiring and installing equipment, expenses incurred by the Board of Directors in connection with
the issue and sale of the Bonds, interest on the Bonds to the extent such interest constitutes the
eligible project cost, and all costs and expenses incurred by the issuer in connection with planning
and development and design of improvements and equipment, including, the generality of the
foregoing, any costs or expenses paid by the Company.

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The operation plan:
The venture would start by renting a building for the machines to work and process the
food wastes into biofuel, as well as a warehouse to store the biofuel and some of the
food wastes that have yet to be processed however the warehouse would have an
efficient ventilation to store the food wastes (small note the building and warehouse
would be rented at the area near the Egyptian Cairo airport in a position that would
also be near several hotels including the infamous Sheraton hotel to be near the
suppliers and the customers)

Then we would select and hire Employees that would be pharmacists and engineers,
pharmacists for the expertise in the organic nature of food wastes and engineers that
would work on the machines and their maintenance (however we would start with only
a handful of them not exceeding 10 employees)

The food wastes of hotels are shipped from them to warehouses at midnight by the
delivery company that we made contracts with, the reason of taking the wastes at
midnight because that is the time where all the food wastes have been fully
accumulated and collected.

The next day at early morning the wastes are transferred to the building where the
main process takes place and then get processed and made into biogas.

The biogas units are then shipped to the airports the same day or mainly as soon as
they were made, then if any biogas remained, they would remain in the warehouses till
there is demand for it.

And the food wastes that have remained can be processed into biogas and later would
be processed further into electricity to cut some costs.

The main point in the operation is that the process is continuous and wouldn’t stop so
that when the client demands any biogas he will get it immediately, which would build a
strong trust relationship with the customers as they can trust us in any urgent need.

Note that processing might branch out from processing food wastes to
processing other materials like plastic and paper since there is also an excess
in their wastes as well.

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The management team:

The Top Engineers and Ahmed Mohamed

Phamacists Sameh
Board of Advisers The Entrepeneur

Ahmed Nasser
Amir Momtaz Thabet Abo Bakr Ashraf
Mohamed
Vice President Abdallah
Vice President
Marketing The CFO
Information Technology

Ahmed Assam
Mahmoud
Treasurer & Controller

The above figure represents the hierarchy and roles of the team members and there will be engineers and
pharmacist employees however the top qualified of them will be part of the board of advisers in order to use their
expertise to find ways that can help cut costs for the operation and possibly achieve higher efficiency or
effectiveness in the process

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Overall schedule:

1/3/2022
• Rental of the building and warehouse

1/4/2022
• The purchase of the machines and equipment needed

3/6/2022
• The beggining of the process of hiring the employees.

10/8/2022
• We will approach hotels with our business and start collecting and taking the food wastes.

1/9/2022
• The first production cycle begins.

12/9/2022
• Execution of the marketing plan and start the promotion of the product and taking the product to the
customers.

15/1/2023
• The first production cycle products sold and so the company would make it's first revenue.
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Financial Projections

The final section of a business plan presents a firm’s pro forma (or
projected) financial projections

Items to include in this section:

– Sources and uses of funds statement.
– Assumptions sheet.
– Pro forma income statements.
– Pro forma balance sheets.
– Pro forma cash flows.
– Ratio analysis.

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Appendix:

An agreement contract with a distribution company

An agreement contract with certain hotels

The C.V of the management team

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