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Case Study 2 Jatropha Biodiesel

Case Study 2 Jatropha Biodiesel

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Pl communicate immediately to all your batchmates : A case study will have to be read, understood, analysed and presented on Monday

6.12.2010 by a couple of teams (which team will be decided by me on Monday morning). Therefore, all students may please work on this during this week-end and come prepared, The case study is : Page 159 & page 160 of the book "Crafting and Executing Strategy" by Arthur A Thompson, Strickland, John E Gamble and Arun K Jain (prescribed text book) Topic : India's Alternative to Expensive Motor Fuel Chapters to be read : Chapter 5 The five generic competitive strategies (this chapter 5 should be read after reading chapter 4 thoroughly) Some of the questions on this case study would relate to the following: 1) if you are a CEO of a company holding patent for biofuel production from jatropha plants, what kind of appropriate strategy you will develop? Why? 2) What precautions you need to take for the company to sustain competitive advantage, if any. 3) what are the factors that would affect your company's prospects? 4) what are the driving forces of competition? 5)How will you assess the potential competitive forces and plan for the future? 6) what competitive advantages you foresee for your company? I request every one to come for the Monday class well prepared. With best wishes Prof P K Jayaram

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Ghana. Energiebau Solarstromsysteme GmbH Heinrich-Rohlmann-Str.energiebau. director of the Central Salt and Marine Chemicals Research Institute in Bhavnagar Gujarat. In Tanzania. has researched the characteristics of all the domestic non-edible vegetable oils and found Jatropha to be the most promising. He is now working on the first Jatropha project in the region supported by the German DEG – German Investment and Development Company. +49(0)221 98966-0 Fax +49(0)221 98966-11 E-mail info@energiebau. Using existing conditions and then converted into biodiesel through a pilot plant using a cold press method. Malawi and Indonesia the German company Energiebau Solarstromsysteme GmbH has supplied systems for decentralised power and introduced hybrid systems with solar and Jatropha biodiesel generators.In India Professor Pushpito Gosh. Fuel specialists from Daimlerchrysler AG tested the end product which met EU standards.de/ India may have solved cheap energy question Financial Times Page 2 of 13 .de Website: http://www. 17 50829 Köln Tel.

capital of the remote Indian state of Chhattisgarh. If 10 per cent of India's estimated 60m hectares (148m acres) of non-arable land is cultivated for jatropha or other biofuels. Chhattisgarh's chief minister. If the experiment is successful. including the chief minister's Tata Safari jeep. small hydroelectric. Shailendra Shukla. principal scientist at the International Crops Research Institute for the Semi-Arid Tropics. flashing red lights atop speeding government vehicles come into view. drivers know what to expect next. an Indian non-governmental organisation." says Suhas Wani. says that with the non-arable land available. €245m) over five years to plant 1. says Winrock. or a third of the state's existing generating capacity. it will change the economy". Chhattisgarh is well positioned to become the country's biodiesel hub. Government motorcades are a common sight in Indian capitals. India. is trying to launch one of the world's biggest jatropha biofuel projects in order to bolster energy security.000 hectares of jatropha. no doubt about it. The state has planted 160. from alternative energy sources by next year. But what is different about this one is that all of Chhattisgarh's official vehicles. Soon. director of Chhattisgarh Renewable Energy Development Authority.09-Mar-2008 By Amy Yee in New Delhi When police bring the traffic to an abrupt halt in Raipur. The country's Ministry of Rural Development has proposed spending $375m (£186m. carved out of the poor neighbouring state of Madhya Pradesh in 2000. grows on non-arable land and needs little water or care. hopes to generate 1. biomass and industrial waste. which imports more than 70 per cent of its oil and gas. the country could produce 4m-5m tonnes of biodiesel a year. Chhattisgarh. is passing through. Further planting could by 2012 yield an annual 2m tonnes of biodiesel. "if all other states replicate this. are run on oil from the wrinkled black nut of a shrub-like tree called jatropha. near Hyderabad.2m acres of jatropha across India and research the crop's viability as a biofuel. Page 3 of 13 . the government would aim for 30m acres of jatropha plantations and seek to commercialise cultivation. wind. Unlike biofuels made from crops such as soybeans and maize. "It has good potential. jatropha is inedible.000MW. or about 10 per cent of current diesel demand. Raman Singh. Its fleet of 40 or so jatropha-powered cars reflects the state's push to develop alternative energy sources that also include solar.

As well as growing on wasteland and requiring little cultivation. we are benefiting Arab people.comparable with the cost of a month's supply of kerosene. Alternative energy dovetails with the government's aims to develop rural areas .Such confidence in jatropha. "It's far easier to grow jatropha than drill for oil. It is also far less polluting than fossil fuels. when asked what spurred him to look at jatropha in 2004. is one of the most pressing issues for India: on the back of annual economic growth of nearly 9 per cent. however. Villagers pay about $1 a month for two lights . To show the possibilities for jatropha. Today all 110 homes in Ranidhera have electricity for four hours each evening. But the power coursing over the village is carried to cities while Ranidhera. Speaking from her low-roofed home.to narrow a widening divide between rural and urban India. not the Indian economy. Winrock in 2005 launched a pilot project in the village of Ranidhera. along with machines to crush seeds and filter the raw oil. it is renewable and is produced locally. Some 25. descends into darkness as dusk falls. a New Delhi-based consultancy. The state and Page 4 of 13 . like so many Indian villages. may be unwise in a country notorious for ambitious plans and poor implementation. With $100. "If we are increasing consumption of oil. The project in Chhattisgarh has been far more ambitious.000 of funding from the British High Commission and the Indian government. energy consumption is expected to double between 2005 and 2030.including electrifying villages . however. The potential of jatropha and similar plants is alluring. But commercialisation is still unproven and questions remain about large-scale cultivation and distribution. "The whole economy of India is damaged because of crude oil. India paid up to $60bn to import crude oil last year. Winrock supplied four generators powered on jatropha oil." Other countries such as South Africa.000 jatropha saplings were planted on roadsides. Ranidhera sits beneath high-tension electrical wire strung on pylons. still untested on a large scale. when he made an initial test batch of 100 litres." says Mr Shukla. Ghana. Brazil and Madagascar have jatropha projects. four hours' drive from Raipur. creates jobs in poor and remote areas and can be used by India's enormous rural population to run farm machinery and even generate electricity." says Akshat Rathee of Earth 100 Biofuels. according to the International Energy Agency. Energy. Pholbati Bai says her four children can now study at night.

Industries: Police Protection. Mr Shukla persuaded the state to build a $85. Admin of Economic Programs. the chief minister. \ Countries: India. but if anything goes wrong I'll hang you. To dispel doubts. money and land. The northern states of Uttarakhand and even desert-like Rajasthan are planting jatropha saplings." says Mr Shukla of biofuel made from food.a trend that has contributed to a jump in global food prices. the strips of land that separate farmers' fields. Oil from inedible plants is less controversial than soybeans. we can't afford to even think of using those.000 litres of biodiesel a day. With its large number of poor. alongside rail lines and on bunds. maize or palm biofuel crops as it does not divert arable land . Shrubs mature within a few years." He points out that jatropha produces three times more oil per hectare than soybeans. Subjects: Government News.000 plant to produce 1. a tree similar to jatropha. Mr Singh insists on running his car only on the homemade biofuel. Mr Shukla offered to fill the chief minister's car with the yellow liquid. Page 5 of 13 ." Three years later. Regulation & Admin of Transportation Programs. About 4kg of jatropha nuts yield a litre of oil. All rights reserved. Public Admin. He says Mr Singh. Executive Offices. "In India. General Government Administration. while Andhra Pradesh and Karnataka in the south are planting pongamia. you're wasting your time. rain-fed biofuel plants on fallow land are starting to take off across India. told him: "You can pour it into my car. Justice Public Order & Safety Activities. FT. Other efforts to cultivate non-edible.central government set aside an annual budget of about $20m to employ rural dwellers to plant jatropha on government-owned land.com Copyright The Financial Times Ltd. India is reluctant to use food crops for fuel. produce seeds for about five decades and require little more than pruning. "If you're growing soya for biodiesel.

nor is it a war hero. especially in developing countries is very high. Originally grown in Central America. Africa. In Mali. an unwanted wild plant that would grow alongside their precious crops. jatropha too is labour intensive. left after the seeds are crushed. as a result of which. corn and sugarcane require productive land. This is the magic of renewable sources of energy. at least if it is to be made commercially viable. Jatropha is not an illustrious King. especially with regard to the third world. one of the poorest nations on earth. It is advantages are many. Its production. additional irrigational facilities and expensive fertilizers. thus impinging on fertile agricultural land. It can even grow alongside food crops without hampering their growth. The very nature of the plant is such. A country’s foremost worry is its food security. Thus. serve as a fertilizer. It grows on almost barren land and requires very little water and hardly any fertilizers. food crops do not suffer indicating a better utilization of land resource. but alas. It can survive on minimum irrigation while nutrient-rich seed cakes. littlejatropha’s secret was finally out. is a weed. fertile land as an important and limited resource needn’t be compromised on. jatropha can grow on waste land. at the same time provides an effective solution to fuel crisis hovering over our heads. lay the answer to a momentous question of a periled generation of humans.No. Underemployment and poverty. Its awful smell and taste repel grazing animals. this tiny seed can empower a tiny Page 6 of 13 . that it can be produced on infertile land. Environmentalists hail this new discovery since the plant prevents soil erosion and does not even demand felling of forestlands. it can tackle the problem of poverty by making it an agricultural practice by the farmers. For many years. While other bio-diesel alternatives like palm oil. in fact it can serve as a repellant to keep the animals away due to its smell. Since this plant does not encroach on agricultural land. Like tea. Its seeds could be crushed to produce biodiesel! In the seeds of that wild plant. Its potential to meet fuel needs. Jatropha was a pain for the farmers. the Jatropha plant is believed to have reached foreign shores across the world courtesy Portuguese explorers.Jatropha. the two major problems faced by developing nations find an answer in the seeds of the jatropha plant. require the setting up of estates. distribution and various other stages of cultivation. a number of small-scale projects aimed at solving local problems — the lack of electricity and rural poverty — are blossoming across the country through use of the existing supply of jatropha to fuel specially modified generators in villages far off the electrical grid. If a bottom-up effort is worked at.

A company based in Singapore has announced plans to plant two million hectares. the UN report states that. and a lack of understanding of the Jatropha Curcas Plant and reliable information. it could have an adverse impact on the country’s food production. the jetropha seed. The big shot corporations display a lack of foresightedness by ignoring the demands and need for effective investment in renewable and environment friendly sources of energy like the jetropha. countries could cut down on their fuel imports. lack of QPM inputs. by producing large yields of jatropha. many projects are only achieving mediocre results. However. jatropha. it is essential that nations are ‘independent’ in their energy production. However. Therefore. In light of such undesirable effects of biofuel. The blessed plant can even be grown in the harsh terrain of Rajasthan. With a limited supply of fossil fuel. and maybe gradually start exporting bio-fuel. In September this year.” One thing is for sure. With a little clairvoyance. it seems that the jatropha carcus has no takers in India. about 4. and may come with increased costs.village in some remote part of India to produce their own electricity or even run their tractors. hold huge stakes. with so many new projects coming up. we all can predict that in the near future. it is also important to Page 7 of 13 .9 million acres of jatropha in the Philippines. a vehicle fuelled with oil from the jatropha plant traveled from Atambua in West Timor to the Indonesian capital. while Jatropha holds a great deal of potential as a biodiesel feedstock. In the long run. lack of Best Agricultural Practices and expertise & poor management techniques . “the benefits to farmers are not assured. The government hopes that biofuels will look after almost 10 per cent of Indonesia’s transport and electricity fuel needs by 2010. Jakarta. in a world where the control over limited energy source might be the raison d’être for the third world war. Jatropha investors have stepped up their efforts to develop a viable source of Biodiesel. a 3200 km trip. Natasha Puri KEY STRATEGIES to SUCCESSFUL JATROPHA INVESTMENTS As Jatropha and other non-food oil crops are poised on the cusp of commercialization. If farmers decide that the cultivation of these plants is more rewarding and viable than food crops. sugarcane and cassava plantations in a bid to create jobs for up to three million people. could well be hailed as a messiah of peace. it is still not without risks. Most experiments with the use and growth of this plant have proven to be successful. Even if jatropha proves a success in Mali. rather have their hands dipped in ‘oil’ at the moment. It would not be incorrect to say that most. and some are already well on the road to success. Jakarta plans to make at least five million hectares (12 million acres) of former forestland available for palm oil. ‘fuel’ will be the buzzword.

And CJP is competent enough to be become your knowledge & Technology provider To engineer and execute Jatropha energy farm from ground zero to harvesting stage we have developed a set of enhanced services with access to our own supply chain intellectual property rights (IPR) and exclusive expertise with technological background and experiences in the field for creation Failsafe Energy Farms to implement project through our level of competence and technology. The key strategies planning. The COC Technology may provide highest oil yield of >1350 gallon per ha… » Read More Biodiesel Business Academy© Page 8 of 13 . Our scope of the Project task may cover a variety of activities viz: Setting up of Plantations from Ground Zero to Harvesting Stage just to ensure "FAILSAFE FUEL FARM" Couple Crop Doubles Oil Yield Jatropha and other nonfood feedstocks have shown the potential as a 2nd gen new biodiesel crops. CJP’s New Couple Oil Crop Cultivation Technology (COC) is poised to feed the biodiesel industries in a very solid and sustainable manner. In order to ensure more return on investment we have been finding more solid secure and sustainable ways.acknowledge many hurdles must be overcome before the crop can become economically viable in most parts of the world. big investments of billions of dollars is being made. expertise and technology for the predicted Sustainability while maximizing Project ROI through Improved Agronomy. methods and technologies are very essential for Successful Implementation & execution of a large scale Jatropha Project with Maximum ROI through Improved Agronomy After having specialized in the field of creation of Failsafe Fuel Farm with experiences and expertise CJP has drawn a set of Key Strategies to Successful Jatropha/other crops Investments Jatropha and other nonfood oil crops projects with Integration above Key-Strategies you need an authoritative agency able to provide knowledge.

The JatrophaWorld Training. sums up the JatrophaWorld Training Jaipur. The BBA delivers Training to international and national participants/professionals of green energy industry to increase and distribute knowledge and skills. Canada. JatrophaWorld Training. Iran. Burundi. Rajasthan from July-14-18. informative and enjoyable advanced level training with enhanced technology in the field of Biodiesel production. have recently changed jobs or simply wish to refresh your knowledge. which was more than the double we got for fist. Programmes and Priorities to Feed Biodiesel Industry Worldwide and has established the Biodiesel Business Academy© (BBA) to provide quality. Participants were benefited from in-depth education of Jatropha with practical JatrophaWorld Training. impartial. India. Germany. 2008 once again broke records when we welcomed over 63 participants from 31 countries. CJP is very proud to announce that 2nd Global Jatropha Hi-Tech Agricultural Training Programme (JWTP) in India at Jaipur. The word “Excellent”. 2008 was also UNIQUE in its trainees profile as well.CJP has the privilege to provide most authoritative Knowledge platform known for Development of Sustainable Non-Food Jatropha Oil Crop Projects. Cambodia . our training should become a key part of your personal or company professional development programme … JP has developed Jatropha Agricultural Training package to deliver Competencies through Qualified trainers with a practical 'hands on' approach and has created successful training division which deliver Training to international and national participants by integrating technical and managerial issues. Belize. Hong Kong. Colombia. Page 9 of 13 . Jaipur. which was used by many trainees to describe their experiences. France . Ghana. 2008 was a grand success. This was the first dedicated Jatropha event that welcomed such a large concentration of multistakeholders from. china . Haiti. Jaipur. Jaipur. Italy. Ireland. . 2008 experience. Whether you are new to the industry. 2007 lived up to its name for being the single premier international training of the global Jatropha fraternity.

Nigeria. Vietnam and Zambia. SPAIN. Senegal. MALAYSIA.2010 today as seats are limited. THAILAND KENYA etc. Page 10 of 13 . CJP provides all aspects of feasibility analysis and business development including assessments of the following: crop production. USA. INDIA. AUSTRALIA. COSTA RICA. Our June'2007 training Programme has been a grand success attended by participants from 18 countries Viz: USA. SIGAPORE.24. LAO PDR. opportunities and solutions of their local. Singapore. CJP can help clients identify the needs. regional and national markets. Turkey. Sri lanka. using up-to-date information. an educated view or projection of what the performance of a company is capable of. Secure your registration for 5day Global Jatropha Hi-tech Agricultural Training Programme 2010(JWTP10) September 20 .. New Zealand. UK. Slovenia. In House training and customized specific training as per your requirement … » Read More Full Range of Biodiesel Business Consulting Solutions CJP’s Professional Biodiesel Business Plan Servicess A feasibility study and a business plan are essential steps in financing and developing a successful biodiesel business. and using the most complete detailed evaluation will save time and money for your project. Tunisia. NIGERIA. Spain.Malaysia. By identifying these needs and providing management direction. UK. kindly visit GLOBAL TRAINING PAGE or mail to Director(Training Division):jatrophatraining@gmail. South Africa. The most critical component of any business plan is the pro forma. BANGLADESH. Performing the right kind of analysis. Mexico. INDONESIA. PORTUGAL. HUNDRAS. CJP can help clients obtain financing in order to develop and manage an effective and successful biodiesel facility.com We also provide distance learning course. SRILANKA. For complete details and registration. Ethiopia. CJP has been involved in identifying these needs for specific projects for a number of years and can help develop a realistic and obtainable. given a specific set of assumptions and conditions.

and investors reading this who can cash in on this biodiesel craze. Read more and important This "Jatropha.e. may lead to a disaster Yes.crushing. new funding. and effective project management—we can make significant progress in the near term to address the climate challenge and fossil fuel crisis through growing green energy from non-food sources. feedstock acquisition and contracting. nonfood biodiesel” is going to happen. Any failure to meet out above. They are already doing it big time in Europe so it's just a matter of time before it happen worldwide using Jatropha and other nonfood oils to make biodiesel. and general project risks. This industry is going to grow very quickly .start planting Jatropha TODAY and then start making biodiesel to produce/generate your own fuel/electricity/power. American companies want to do business with non-food oil Jatropha and others and with CJP’s association. markets. there is one more reason why there may be a disaster in the waiting. scientific research. market and financial analysis. QPM Nursery and HYV germination seedsCJP is the internationally recognized professional Jatropha and other biodiesel Page 11 of 13 .the Science and TechnologyCJP is the only worldwide authoritative Agency to Provide Jatropha State – Of –Art TechnologyCJP is the one & only authentic Source of Quality Inputs i. With above steps —government support.. After having gone through the site you shall be able to know the basic Requirements for an effective energy plantation project. non-food oil -centric and not just the developing countries want to grow Jatropha and nonfood biodiesel crops with CJP’s integration. Now that you own the asset.. feedstock. We know there are a lot of farmers. coproduct markets. planting stock. entrepreneurs. EU companies want to do the same Because CJP is the global authority to Provide Complete Knowledge of the JCL System: Planting .. technology analysis. you don't know what to do with it because you did not have a plan about the asset.a perfect business plan is absolute The Whole World Biodiesel Industry is becoming Jatropha. CJP can offer the type of consulting that only numerous years of leadership in the small to mid-size biodiesel market can provide at an affordable price…. risk analysis specific to biodiesel technology.

common in hot climates. Strategic Plan to apply our tested and proven Technology and applied Methodology and approach to achieve the aimed objectives i. in certain parts of the world. raises several significant challenges.. launched a 10-year. $9. and more than ten times that of corn. the Energy and Resources Institute (TERI). CJP's global integration is through IPR Knowledge. planted in what was wasteland..? Just need a proactive approach. trust and respect at the core of all we do..plantation Advisor to provide long-term advisory services on development strategy and project implementation. development of FAILSAFE JATROPHA FUEL BUSINESS We will ensure that our operations are consistent with our values EntrepreneurialInnovativeEffectiveResponsiveResponsibleSustainable We place integrity. have now flowered. ENERGY India's Big Plans for Biodiesel Researchers are developing new methods for cultivating a plant called jatropha... What need to do to venture into the biggest business opportunity of 21st century. which has not previously been grown as a crop. director of TERI's Biotechnology and Page 12 of 13 . and it yields more than four times as much fuel per hectare as soybean. Just CJP’s integration CJP is getting globally integrated in a very different way with all stakeholders. says Alok Adholeya. The first crops of jatropha. One challenge is growing the plant in poor soil. And. But the commercial-scale cultivation of jatropha..?. governments and some corporations consider the jatropha plant. 2006 BY MICHAEL FITZGERALD E-mail Audio » Print Biodiesel could be an important renewable substitute for fossil fuels. one of the most promising sources of biodiesel. an Indian research group. • • WEDNESDAY. What one needs to do is to create setting up a successful biodiesel Plantation. This year. DECEMBER 27.4 million project to research issues involved in taking jatropha from seed to filling station.e. The plant can grow in wastelands.

" he says. the project has signed up 5.000 farmers representing 1. it aims to produce 90 million liters of biodiesel annually. Page 13 of 13 . it's also collaborating with insurers to back the farmers against potential losses. So far. By the end of 2008. Adholeya's team found that the most effective was a fungus in the glomus species (he is not currently disclosing the exact fungus).000 hectares of land. In addition. collaborating with local financial institutions to develop loan guarantees to fund seed purchases. TERI plans to have a production facility producing biodiesel from jatropha. and Adholeya says that the success of the first crops has drawn interest from many more farmers. The TERI project is working in rural Andra Pradesh.000 hectares under cultivation by March 2008. Eventually. "It proves that we can do this. a state in southeast India. symbiotic fungi that improve the ability of many plants to grow in poor soil. He and other researchers at TERI spent five years testing different mycorrhiza microorganisms. The goal is to have 8. which improves jatropha yields by 15 percent. it had to educate the farmers on how to cultivate the plant.Management of Bioresources division.

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