biz plan resra vec final

8/2/2019 Biz Plan Resra Vec Final

1/34

Renewable energy Supply for rural

Areas (RESRA)Business Plan for VEC

Jijeevisha Samitee,


2/34

Process of Business in Project

Oil

Oil Seed

Extracti

on of

oilExpeller

De-oiled

Cake Manure

De-

gummingDe-gummer

Degummed Oil

De Gummed

oil to Sale in

market for

blendingwith diesel

Extra oil

to sale in

market

GensetElectricity

Farming

Activity

Entrepreneurship

Purchase crude oil from

Market

Biogas

Biogas

genset


3/34

Explanation of Business module to the community

Jijeevisha Will try to explain the project tocommunity business module and how can weearn profit , and the community also earn profitwith new business module


4/34

Interaction with SVO and DOC markets

Jijeevisha is already in touch with market players of SVOand DOC and some understanding developed alreadyregarding oil seed trading . For this business modelsurvey we meet up with around 15 mediators (seedtraders in villages), 3 expeller, and 75 villagers beforethis presentation. This is again not a authentic databut a assumption with +- 20 %


5/34

Within Project Area21%

Out side project area(within district)

24%

Out side project area(out side of district)

55%

Avalibility of Jatropha (Area wise)


6/34

Sector and marketElectricity

Current Market- 1. Electric pump(Irrigation, Agriculture)2. Expeller Machine

3. Huller, flour Mill

Future Market- 1. Rice Mill2. Forest Produce Processing units3. Advanced farming4. Future processing units

5. Medicinal herbs processing units6. Packaging units for organic produce and

herbs7. Cold storage units8. Dairy and its produce


7/34

Current Market- 1. Electricity Generation for the Project2. for Blending with Diesel to run Diesel pumps

and other diesel Engine3. sale to other Player involved in Bio-fuels

Future Market- 1. for Blending diesel with for all dieselengines

2. Bio-diesel production,3. Production of export quality SVO

SVO

Sector and market


8/34

Market for DOC-Current Market - 1. As bio fertilizer

2. Supply to NABARDs WADI project as

organic fertilizerFuture Market 1. Bio-fertilizer Production units

2. Supply to Governmental agencies3. Organic farms4. Biogas unit

DOC

Sector and Market


9/34

Variation in price of DOC and oil

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

DOC 6.5 7 8 8.5 8.5 9 9 6.5 5.5 5.5 6 6

SVO 39 40 41 42 39.5 38 37 35 36 36 37 38

0

5

10

15

20

25

30

35

40

45

PriceRs.

Electricity- Government supply is subsidized for farmers but notreliable and sufficient supply is there. Per unit cost of diesel pumps (in

term of Electricity)is about- 12-17


10/34

Variation in price of Jatropha seed

12.5 13 1314 14 14 13.5

12

9 9.511.5 11.5

7 7 7

7 7 7 8 8.5

22 22

15

7

0

5

10

15

20

25

30

35

jan feb mar apr may jun jul aug sep oct nov dec

Variation in price and moisture contain of the Jatropha Seeds Annual

Variation in price and Moisture contain in Jatropha Seed

Moisture contain

Price of Jatropha Seeds

As per current Jatropha Market Rates we made this conclusion the

purchase rates of JATROPHA is Rs.14.00per kg . F.O.R. And this business

proposal is developed on the basis of this rate.


11/34

Future of our business

Demand of Bio-fuel is increasing day by day

Demand for organic produces is increasing and thereis good market

Demand of Electricity, SVO, DOC is huge in ruralmarket this opportunity is advantage for rural

community we are working for, and for this businessmodule

Since we are working in this fields and area from last two yearsand villagers trust with us and GIZ this is our responsibility tomaintain it.


12/34

Scope of Oil Business and of Renewable Energy

We are not sure about overall turn overour market share will be little but we

can cover all Korba and itssurrounding

Since demand renewable is increasingday by day we are sure about growth of

our business


13/34

Our Customer for different products

Customers readily available

Electricity - 9 Electric pump1 Ready to eat unit1 Flour millExpelling units of the project

SVO - To Run Genset for the projectTo Blend with Diesel Engines / pumps

DOC - NABARDs WADI projectJijeevisha Farms

Organic fertilizer units in Raipur and other places

Expelling service - Mahuva and kusum produced in bulk within and nearby project area for Expelling Service.


14/34

Specialty of our offerWe can provide reliable electricity to start business within project

areaReliable electricity supply for irrigation purpose

Less cost than to run Diesel engines

Support to Farmers entrepreneurs to setting up their bussinesSVO

Supply of Degummed SVO since no units of de-gummer is runningin the region.

Supply of degummed oil for blending with diesel

There are no any other market player for degummed SVO and reliableelectricity in project area


15/34

Sales promotion of the products

Electricity-

Reliable electricityElectricity at door step through mobile GeneratorFree consultancy to electricity users for growth of their business

DOC-Sale of DOC with more organic additive (Micro nutrients)Sale of DOC in packets and in ready to use form

SVO-Sale of degummed SVO as diesel additiveSale of Degummed SVO in pouches as requirement of farmers and otherdiesel engine usersSearch of Market oversea(Export market)

Since we have our previous expertise in customer dealing we are able to

fully satisfy our customer


16/34

projected Expenses during Launch On Commissioning of -(Genset, Expeller, De-gummer, Decorticator,

Screener and other accessories) Activity floor/platform around Genset unit (600sq feet) Different types/ size container Fencing around the sheds Weight machine/ for Seed and DOC, Volume meter(Liter) for SVO

Packaging unit for DOC and other products Supply cable in pole erected already Cable drum with 200 mtrs. cable for supply electricity( fitted in trolley) Small Lab Unit for Quality Control One Tractor with trolley unit for mobile Generator One 5 HP Pump,with 200 mtrs. Canvas pipe (fitted on trolly)


17/34

Payment system

Payment system for consumer shall be in form ofcash(Part payment) or barter system as perrequirement and situation of the customer.

most of the customers will pay after grow and sell

of their product .


18/34

This is an opportunity for us to work for the villagers and

become pioneer in the fields of Biofuel and SVO.

Opportunities- To work in the cluster where villagers are well

oriented to benefits of the project Being pioneer in the fields of Biofuel and SVO

production

Government also promoting biofuel business it helpthe projectRisks- Natural Calamities Unpredictable fruiting of oil seeds Theft of goods and products


19/34

We are looking a develop village withgood business sense and they haveopportunities to make their futurebright

In worst case villagers

would live better incondition as of now

Future of RESRA villages


20/34

Seasonal availability of oil seedsTrading / Expelling services could be done of oil seeds in a year Max (based on assumptions and survey with

villagers , oil seed traders, oil mills and other )

Available

quantity in Tons

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Jatropha 10 5 0 2 2 2 5 5 20 40 20 10 121mahua 1 1 1 1 1 5 50 50 15 1 1 1 128

Kusum 0 0 0 0 0 0 20 50 50 3 4 0 127

Other(Eadibleand non

eadible) 2 2 2 1 1 1 1 1 1 1 1 2 16

13 8 3 4 4 8 76 106 86 45 26 13 392


21/34

Price of Jatropha- Rs 14.00 p/Kg ,total Quantity- 121000 KG= Rs. 1694000.00Expelling Cost of 121000 Kgs of Jatropha @ Rs 1.50 pkg =Rs. 181500.00Degumming cost of 31036.5 Kg of SVO @Rs0.50 pkg. =Rs. 15518.25

Total Amount =Rs. 1891018.30

Cost of SVO and DOC

121000 Kg jatropha Moisture loss@5% (-6050 Kg) Balance -114950 Kg27% oil contain of 114950 Kg is 31036.5Kg and 73% DOC is 83913.5 KgSVO In liters(0.9 liters/Kg of SVO) 27932.85Liters

To Produce 27932.85 ltr SVO and 83913.5 KGs DOC cost =Rs. 18,91,018.30To Manage SVO price VEC will cost Rs. 5.00/Kg for DOC(-)=Rs. 4,19,567.50Production Cost of 27932.85 Ltr of SVO is =Rs. 1471450.80

Production Cost of SVO Rs.1471450.00 / 27932.85 kg =Rs. 52.68Profitte of VEC per Kg =Rs. 1.32Selling Rate of SVO per Kg =Rs. 54.00

DOC cost 5/= VEC profit 3/= per kg Selling Price per kg =Rs. 8.00


22/34


23/34


24/34

SVO REQUIRE FOR GENRATING ELETRICITY

Generator 1 & 2 of

20 KWeach

EstimatedSVOconsumptionltrs. per hourfor eachgenerator

Estimatedrunningper day inHrs

Estimatedrunningdays peryrs.

Total SVO

consumption

to run both

Gen set

20 4 8 288 9216

20 4 8 288 9216

SVO cosume per year 18432 Ltrs.


25/34

INCOME FROM EXPELLER JOB WORK

All SeedExpelling

Rate Income Elect Cost Income

kg Rs./kg Rs. Rs. Rs.

392000.00 1.5 588000.00 470400.00 117600.00

hours Generator use for expelling 7.5 Kw for 100 kg/prhr 12 month

Per Month Yrs. per annum elec rateRs exp inelectric

Explr elec 3920 12 29400 16 470400.00


26/34

Management and key positionsSn Basic team for RESRA no.of posts

1 Project In charge _ 1

2 Marketing _ 2

3 Mechanic _ 1

4 Purchase _ 1

5 Labor _ 3

6 Accountant _ 1

7 Quality Control manager _ 18 Storekeeper _ 1

9 Operator _ 1

10 Watch man _ 1


27/34

Manpower Requirements.no Man Power Year 1 Year 2 Year 3 Year 4 Year 5

2 Gen set 7 Gen set 24 Gen set

1 Project Incharge 1

2 Project assitant 0 1

3 Marketing 2

4 Asst. Marketting 0 1

5 Mechenic 1

6 Asst Mechenic 0 1

7 Purchase 1

8 Labour 3 3

9 Accountant 1

10 Asst Accountant 0 1

11 Quality Controll manager 1

12 Storekeepar 1 1

13 Operator 1 1 1

14 Watch man/operator 7 17


28/34


29/34

Sort term personnel requirement

Survey team for Land Availability for agriculture and advanced FarmingSurvey team for Soil and crop analysisSurvey team to Develop barren Land into fertile landTeam to survey of water resources and its developmentTeam for the development of Irrigation facility at farming landTeam to develop Irrigation channel ie. Drip Irrigation, Sprinkler etc.

Agriculture expertMarket Study for SVO, DOC, and electricityMarket Study on agriculture produce and its processing

Quality Experts, to produce export quality product.


30/34


31/34

Total expenses

Salary 204000

Maintenance 120000

Fuel/Vehical 120000

Stationery/phone 24000Misc 24000

Sub-total 492000 492000

Jetropha 14 121000 1694000

2186000


32/34

Profit to VEC

Income of VEC

Kg/ltr/unit prf/rate Profit

SVO 27932.85 1.32 36871.36

DOC 83913.5 3 251740.50

Electricity 69120 1.6 110592.00

expelling 117600.00

516803.86

Salary 510000.00

Net Profitt of VEC 6803.86


33/34

TOTAL INCOMEELECTRICITY 16.00 69120 1105920.00

Expeller 1.5 392000 588000.00

SVO 54.00 27932.85 1508373.90

DOC 8 83913.50 671308.00

3873601.90

Production Expenses Less -1662746.25

Expences Less -2186000.00

Net Profitt /loss 24855.90


34/34

biz plan resra vec final

Documents