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Project Report - Business Development Plan- Bio Gas

A Project report on Business Development Plan

Setting up cost effective renewable energy source of
BIO GAS

Under Guidance of Dr. Venkatesan Murugesan

19-Mar-2017

Compiled by: EPGDIB (2016-18) | Section B

Group Members

S.No Student Name Sectional Roll # Roll #

1 Pankaj Chadha 20 B 61

2 Shobhit Agarwal 36 B 77

3 Sachin Sharma 33 B 74

4 Sanjay Antal 35 B 76

5 Anjul Mohan Gupta 04 B 45

EPGDIB (2016-18) | Section-B Page 1 of 27

Project Report - Business Development Plan- Bio Gas

Table of Contents
Executive Summary..................................................................................................................................... 5
Company profile............................................................................................................................................ 7
Products and Services ................................................................................................................................... 7
Size and form of Business ............................................................................................................................. 7
Office Equipment and Personnel .................................................................................................................. 7
The Entrepreneurs ........................................................................................................................................ 8
Vision:- .......................................................................................................................................................... 8
Mission .......................................................................................................................................................... 8
Market need.................................................................................................................................................. 8
The Problem .................................................................................................................................................. 8
Situation analysis of “Sustainable Energy” Company ................................................................................... 9
Political ...................................................................................................................................................... 9
Economical ................................................................................................................................................ 9
Social ....................................................................................................................................................... 10
Technological .......................................................................................................................................... 10
Industry Analysis ..................................................................................................................................... 11
Energy Supply & Demand ........................................................................................................................... 11
Competition ................................................................................................................................................ 12
Current Trends ............................................................................................................................................ 12
Environment ............................................................................................................................................... 13
Availability of Biomass ................................................................................................................................ 13
SWOT Analysis............................................................................................................................................. 13
Strengths ................................................................................................................................................. 13
Weakness ................................................................................................................................................ 14
Opportunities .......................................................................................................................................... 14
Threats .................................................................................................................................................... 14
Segmentation & Targeting .......................................................................................................................... 14
Geographic .............................................................................................................................................. 14
Demographic ........................................................................................................................................... 15
Psychographic ......................................................................................................................................... 15
Behavioral ............................................................................................................................................... 15

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......................................................................... 17 Marketing Strategy ....................... 22 Financial Rewards ......................................................................................................................................................................................................................................................................................................................................................................................................................................................... 15 Service differentiation ................................................................... 16 Image differentiation ............................................................................................................. 19 Roles and Responsibilities of the Members ................................................... 16 Promotional Mix ......................... 20 DESIGNATION (HEAD OF R & D).............................................. 15 Slogan ............Bio Gas POSITIONING............. 22 Lunch Hours .................................................................................................................................................................................................... 22 EPGDIB (2016-18) | Section-B Page 3 of 27 ............................................................. 18 Management plan ............................................................................................................................. 16 Product ................... 16 Placement ............. Project Report ................................. 16 Level of products.................................................................................................................. 21 Key responsibilities of team of R&D ................................................................................................................................................................................................................................................................ 16 4P’s ............................................................................................................ 16 Price ...............................................................................................................................................................................................................................................................................................................................................................................................................) ........ 21 DESIGNATION (HEAD OF HR MGT............................................................... 17 Production Plan: Biogas generation............................................................................................... 22 Working Hours ...................................... 19 Form of Business .............................................................. 17 Marketing Objectives ...... 17 General factors which influence biogas production: ............................................................................................................................................................................................................................................................................................................................................................. 22 Others Rewards................................................................................................................. 20 DESIGNATION (HEAD OF TECHNICAL FACILITY) ................................................................................................................................... 22 REWARD STRUCTURE ................... 19 Board of Directors .......................................................................................................................................................................................................................................................................... 19 Identification of the members ...................................Business Development Plan.............................................................................................................................................................. 21 DESIGNATION (HEAD OF PRDUCTION AND OPERATIONS) ........................................................................................................................................ 20 DESIGNATION (HEAD OF MARKET & CONSULTANCY) ............................................................... 20 DESIGNATION (CHAIRMAN)..................................... 21 DESIGNATION (HEAD OF FINANCE AND CONTROL).............................................................................

.................................................................... 26 Level of Risks ........................................................................................................................................................................................................................................................................ 27 Financial and control Risk ............. Project Report .................................................................................................................. 23 Succession Planning .......................................................................Bio Gas Leave Schedule.............................. 26 Product and Execution Risk..................................................................................................................................................................................................................................................................................... 26 Risk Assessment ......................... 23 Financial plan ..................................................................................... 23 5..................... 24 Generic Value Chain for Biogas ..........................Business Development Plan.................. 27 EPGDIB (2016-18) | Section-B Page 4 of 27 .........................................................................................................................................................................................................09 .................................................................................................................................................................... 27 Conclusion ................... 23 Training .............................................................................................

The company intends to become a pioneer. The product offerings of the company include Biogas for households. EXCOM (Executive committee) comprises on head of the departments and MANCON (Management committee) comprises on functional management who are looking day to day activities of the organization. The initial capital required for the establishment and operations of the company are INR 31 million. Project Report . which is to provide the energy source that is never ending. the recognition of the fact that biogas technology is progressive and the demographic changes in the consumer demands to use more cost effective energy intensive products.Bio Gas Executive Summary “Sustainable Energy” is a Faridabad based startup company dedicated to providing a cost effective renewable energy source “Biogas” in the form of different products. the company has estimated to reach INR 75 million of sales. with the gross profit margin of 45%. the company is pursuing the project which is not only socially acceptable but at the same quite profitable as shown by its economic feasibility. The company is applying the HR practices for the betterments of its employees. respect for teammates and betterment of environment. The payback period of the project is four years The company’s values include quality. The target market for “Sustainable Energy” Company is considered to be the villages closer to the company’s production plant at the initial level. Electricity for industry and Biogas for transportation. while at the same time to further our efforts for making environment friendly products and having a very beneficial output from the waste. The company’s management team consists of the MBA students having specializations in the fields of Human Resource Management. In the first full year of operation. by introducing and expanding its diversified products and geographical coverage with the passage of time. The company is also aimed at providing consultancy services regarding the integrated energy solutions by pursuing the strategy of continued Research and Development.Business Development Plan. So. In addition to this the company’s major customers include factories located near the production site. The main reasons for the initiative taken by the company are to capitalize on the opportunity of providing alternative energy sources to the consumers. Finance and Management Information System. By pursuing this business the company is aimed to introduce the solutions for reducing dependence on the energy imports and thus contributing the economy in a very positive way. the company is not expected to face EPGDIB (2016-18) | Section-B Page 5 of 27 . trust. for producing biogas on the commercial level in India. Currently. The company was formed in 2015 and currently has 5 member The company’s name truly reflects the nature of the business. The “Sustainable Energy” company organization is based on modern management structure comprises on two committees EXCOM and MANCOM. The analyses project that the sales will grow to 35% a year within the next 3 years. categorized according to different consumption patterns that will be extremely beneficial for our target customers in the face of this severe energy crisis in the country.

The R&D department is also in close collaboration with Indian Council of Renewable Energy Technologies for having the information about the latest research and development being done in the sector of alternative and cost-effective methods of producing biogas. Dead Animals. In this regard. Gas chamber. the internal computer network is established for the close coordination between the production and the technical staff while at the same time the external networks and internet would be utilized.Bio Gas any kind of direct competition for biogas production. With reference to company’s manufacturing facility the whole gas production process is done by the “Sustainable Energy” Company and no part of the production is subcontracted to some other entity. The machinery and equipment required for the process include Digesters. For the future. The company. To increase the public awareness about the venture. The physical plant of the company for the biogas production is installed at the Khand-2 Sewage Canal. 15 Turbines. and 3000 small farmers.Business Development Plan. dedicated workforce. making this process even more beneficial and profitable because this can be sold at the reasonable cost. For the efficiency and timeliness of its operations while at the same time for ensuring the appropriate control over the production process. After producing the required amount of biogas from this input the remainder or bio slurry can be used as the fertilizer. EPGDIB (2016-18) | Section-B Page 6 of 27 . Process Control System. effective planning and continued R&D. Container Trucks. the company has decided to use word of mouth. plans to use 6. the company is aimed at using Information Technology as a competitive edge. Faridabad. In addition to this. Bacteria Checking Machines. The company receives the input for the biogas production process from 8 Dairy Farms.500 cubic meters of animal manure and 4. which then can be utilized for covering the input cost of “Sustainable Energy” Company. at the initial level. Project Report . The company is doing business in a suitable environment where the chances of success are very high. education sponsorship programs and radio advertising as the prime sources. in order to keep themselves current about the latest trends and developments in the environment and provide their recommendations and suggestions to the top management and operational staff accordingly. The company has an initial risk of financing and product execution while other risks are not much concern to the greater extent. at least at the commercial level. The total area covered by this plant installation is 8 acres and is acquired at the lease of per acre per annum.200 cubic meters water as the input. Sewage Lines. Vegetable Market. Bypass Road. Cylindrical Purification System. the company believes that it would be able to compete effectively because of its high quality products. it has decided to use customized software to control the whole production process in the highly effective and efficient manner with the great accuracy. Pressure Control System. especially by R&D personnel.

• Household • Transportation The offerings in this regard will include biogas for household use as well provide to industry at initial stage. BYPASS ROAD. Office Equipment and Personnel The company has more than 30 employees working in three shifts. is basically a startup venture for producing biogas at the commercial level taking biomass and other manure as the input and at the same time providing integrated energy solutions to the end consumers and society in a very economical and environment friendly way. Name of product: GREEN AND CLEAN ENERGY Name of company: “SUSTAINABLE ENERGY” COMPANY Address of company: KHAND-2. whole process of production is carried through the support of technology. bio fuel for the vehicles named as Bio CNG cylinders. SEWAGE CANAL FARIDABAD Products and Services The products and services that will be offered are categorized according to different segments of consumptions consisting of. EPGDIB (2016-18) | Section-B Page 7 of 27 . Project Report . which is also depicted by the name of the company. Size and form of Business The key factor determining the success of the business is that it is going to operate in the sector where the demand of the energy is considered to be ever increasing and everlasting. The objective of this company is to provide biogas energy to its customers at the lower cost than other renewable energy resources while at the same time to preserve our environment by recycling the waste to produce beneficial products.Business Development Plan. bio energy for electricity generation and the consultancy services for house hold energy solutions. • Industry.Bio Gas Company profile “Sustainable Energy” Company. will be located in Faridabad.

producers and users of energy at the household level. Website: www. performance. The Problem Excessive use of biomass energy is not only a threat to the environment due to the high use of forest resources. but also results in a drop off in the agricultural productivity due to the diversion of agricultural residues and animal waste from farms to fireplace. which are a health hazard due to increased air population. Simultaneously.com Vision:- “Changing life styles with economic and unique available resources” Mission “Our mission is to provide integrated energy solutions to our customers in an environmentally friendly and socially responsible manner. We believe it is essential not only to make profits but also to care about people and protect the environment. We strive to provide power in a way that is sustainable in the long term. “Sustainable-Energy”. This situation is worsened by the low level efficiency of these fuels. EPGDIB (2016-18) | Section-B Page 8 of 27 . We will lead by example through a commitment that empowers our customers ensuring the excellence at all levels of our operations. India has predominantly rural society where biomass fuel is the major source for cooking and rural women are primarily involved in biomass collection and use. Project Report . Human Resource Management. Security and affordability of energy supplies are key inputs to ensure sustainable development. which is to provide the energy source that is never ending. The company’s management team consists of the MBA students having specializations in the fields of Marketing. particularly to rural women who are the managers. However. products and services.Bio Gas The Entrepreneurs The company’s name truly reflects the nature of the business.Business Development Plan. actively contribute towards welfare of society and social uplift of the under privileged section of the community” Market need India is one of the developing countries facing a huge demand in the energy sector due to the trends of improving lifestyles and growing population. sufficient number of industries can’t be set up especially in rural areas so far due to scarcity of energy supply. Finance and Management Information System. Equitable access to energy constitutes a basic element of effort to combat poverty and sustained economic activity.

because energy is the resource used to exploit all other resources. The macro –economic implications of supply shock induced energy crisis are large. the energy crisis. the political scenario of India is quite favorable for using renewable energy resource in order to eliminate the severe energy crisis in India. India’s Medium Term Development Framework (MTDF) 2005-2010 sets out a challenging program to achieve 8% annual growth in GDP. One of the major problems facing the new government. A huge shock for the present economic condition is that international oil prices have not only broken all records and are touching the new heights. Solar and Wind energy) as well as the energy conservation. Even before it took office. the government now understands that. Hydropower. The endless reality is that this global spike will somehow have to be accommodated in the energy prices in India. Meanwhile crude oil prices have been registering all-time-highs. shooting 40% in the past year. In this crucial situation. In this regard.Bio Gas Situation analysis of “Sustainable Energy” Company Environmental analysis Political Presently. Project Report . in order to tackle the existing energy crisis and ensure a prosperous energy future. is intense. The infuriating electricity and gas disruptions and soaring fuel prices in turn pushing the cost of living have made life very difficult for the people of India. Moreover. government made a policy commitment to encourage the biogas installation plants in the country along with the 75% interest subsidy on loan from the federal government of India. speculators all around the world expect oil prices to touch $110 per barrel in the medium term. the backbone of the future energy policies would have to be reliance on domestic resources (Biogas. costly and multidimensional. accounting for the 15% in two weeks. With concerns over many issues oil prices don’t see any other way but to shoot upwards.Business Development Plan. Associated growth in energy EPGDIB (2016-18) | Section-B Page 9 of 27 . Economical Energy sector is one the most important sectors driving the economy of India and that’s why some of the latest fluctuations due to the energy crisis in India are having an adverse impact on the economy of India coupled with the widening gap between demand and supply in this particular sector. for the new government was greeted with two jumps in fuel prices.

Project Report . an alternate source like nuclear. psychologically and politically empowered. Technological Indian Council of Renewable Energy Technologies has been recently established by merging National Institute of Silicon Technology and Indian Council for Appropriate Technologies. which has necessitated the use of vehicles are cars for transportation. Imports of crude oil at about $110 per barrel increased the trade deficit and the current account deficit. This has to be tackled in two ways: (1) We’ve to try to introduce the plant models most suited for the area and (2) devise suitable training of extension workers to enable them to take the message of BT to the people. solar. the dependence on imported petroleum is expected to increase. prejudices.Bio Gas consumption is forecasted at 12% a year and this expected growth would have drastic pressure on all sectors of India’s primary energy supplies. The need of crude oil is on an increase because of an improved lifestyle.Business Development Plan. the shooting up dollar value is also posing a huge threat to the economy. In this way. which could be used for other productive activities that enable women to be socially. Their livelihoods are threatened due to their heavy workloads and deteriorating health conditions in the absence of good nutrition and health services. which are environment friendly. India has a deficit of fossils or hydrocarbon sources of energy to cover up the deficit. prevailing in the society pose problems for promotion of the biogas technology . therefore putting the economy under great strain. social and community development activities for their self-enhancement and empowerment. In addition to this. habits. There are alternative energy resources (especially biogas) that offer significant potential in terms of reducing women drudgery and improving health conditions. allowing rural women to have enough time to be involved in income-generating. Social India has predominantly rural society where biomass fuel is the major source for cooking and rural women are primarily involved in biomass collection and use. Often the beliefs. Biogas energy has potential to save the metabolic energy and the time of women. But it should be kept in close consideration of the environment degradation problems and processes. it depends upon importing crude oil at an enormous cost from its meager forex reserves. etc. wind and biomass energy would have to be explored. should be adopted. EPGDIB (2016-18) | Section-B Page 10 of 27 .Factors such as educational background and income of the beneficiaries may also affect the speed of BT adoption. These have been assigned the responsibility of Research and Development dissemination and provide trainings to promote renewable energy technologies in the country and their main areas of functions include providing all the information and technical assistance regarding biogas plants installations in India. being an energy importer. In view of India’s meager resources of fossil fuels.

India EPGDIB (2016-18) | Section-B Page 11 of 27 . India being agriculture based. Project Report .000 bbl/d and has ambitious plans to increase its current output to reach 100. poor transmission and distribution system and inefficient energy use. Natural gas in compressed form is already being used successfully as vehicle fuel. Biogas has been explored as an alternative to petrol and diesel to lighten the import burden. The current situation in India is that it is producing 64. According to Oil and Gas Journal.  A complex range of energy resources is available and each plays a different role in meeting the national needs. Energy Supply & Demand India’s recent economic acceleration together with rapid rates of population growth is having a significant impact on the country’s energy supply and demand balances.Bio Gas The technology change rates.  Exploiting the energy resources creates the environmental hazards that threaten the long- term development prospects and social welfare. with respect to biogas plants. breeds sufficient live stock to produce enough animal waste for the production of biogas. The current situation in the India’s energy sector is that the important energy resources have been depleted and whatever resources are available are simply too expensive to buy or already acquired by the countries which had planned and acted long time ago. is non-existent and therefore there is no such problem fostered in the installation of the biogas plants in the country as well as much of the technological help and incentives are being provided by the council.  The gap between domestic energy supply and demand is widening because of inadequate production. leaflets. In addition to this.000 bbl/d in 2010. India’s population is growing at a very rapid pace and more than half of this population lives in rural areas. therefore the environmental issues like greenhouse effect and correct waste disposal methods as well as providing energy for all the people in rural areas is gaining much attention in the current scenario. Currently. calendars.Business Development Plan. all such animal waste is burned in the dry form as the domestic source of energy. Three critical characteristics must be considered in analyzing India’s energy sector. posters and manuals written in the local language can be effectively utilized for creating the awareness regarding the benefits and uses of biogas. Gaseous fuels like Natural gas. Industry Analysis India has one of the world’s fastest growing economies and energy resources development will be essential to increase its ability to sustain the high growth rates through the 1990s. There is quite a potential for using biogas technology as rural energy though out the country by network of community biogas plants. The same can be used for producing biogas on commercial bases with effective utilization of technology.

So. The indirect competition in the energy sector is being fostered by the other alternative renewable energy resources including natural gas. firewood. Sector wise consumption of the Natural gas is given as below: Sector Natural gas consumption Power Sector 35. is facing is facing the serious challenge of energy deficit. There is enough livestock for producing biogas up to 16 million cubic meters a day and it can be very effectively used as fuel. So.8% Cement 2. But due to its cost-effective and environment friendly nature.Business Development Plan.4 thousands bbl/d. and coal and petroleum products. the primary energy supplies are not enough to meet even the present demand. Current Trends The following factors are contributing to the sharply rising demand for the conventional energy supplies in India:  Industrialization  Urbanization  Population growth  Shift in consumer demands towards energy intensive products EPGDIB (2016-18) | Section-B Page 12 of 27 .5% Competition On the commercial level production of biogas in the country there is no competition at all in the market.8 million barrels of proven conventional oil reserves as of 1 Jan 2005.4% Industrial 18. There are some of the biogas production projects already running but they all are on the very small-scale level. like other developing countries of the region.6% Commercial 2. Today. wind energy. solar energy. India. Project Report .9% Household 17. “Sustainable Energy” Company would not face any kind of direct competition in the commercial sector.Bio Gas had 28.4% Fertilizer 23. biogas plant at the commercial level is going to have a firm standing in the presence of this indirect competition. Consumption of petroleum products is estimated at 351.

of India is attempting to raise the living standards of its citizens and has meant that the economical development has largely taken precedence over environmental issues.Business Development Plan. it generates less air pollution by the combustion of biogas instead of wood or animal dung  Finally. millions of gallons of wastewater. SWOT Analysis Strengths  Low price  Environment Friendly  Initiative step for alternative energy  Qualified management  Government and Public Support  No complexities in production of Biogas  Agriculture support EPGDIB (2016-18) | Section-B Page 13 of 27 . The overall impact of the biogas technology in terms of environmental conservation is considerably beneficial as the process provides an environmentally sound means of managing animal and plant wastes. Much of the country suffers from a lack of healthy and clean drinking water due to industrial waste and agricultural runoff that contaminates drinking water supplies. Unchecked use of hazardous chemicals. chief among them is water pollution.000 tons garbage collected in the major cities. An important advantage of the biogas programme is that it results in considerable reduction in fuel wood demand especially in the rural areas.Bio Gas Environment The Govt. we get natural fertilizer (manure) from biogas sludge. vehicle emissions and industrial activity has contributed to a number of environmental and a health hazard. millions of cotton stalks and rice husk etc.It is very economical and friendly way of disposing off the municipal waste that is collected in tons every day in the big cities but unfortunately no efforts have been made in this particular direction in India. Project Report . The substitution of fuel wood by biogas leads to three main benefits:  Firstly. thus achieving numerous environmental benefits  Secondly. it slows down the deforestation trend. which is why biogas offers a safe and clean source of alternate energy Availability of Biomass Availability of Biomass in India in 350.

Project Report .Bio Gas  No harmful material waste  No pollution  Ozone Friendly  Use of Animal Wastage Weakness  Nil as of now Opportunities  Being Agrarian country. abundant ingredients for biogas  Kisan Dost Lease Finance Facility available for the installation of biogas plant  Less labor than tree felling  Economically feasible and socially acceptable concept  Huge potential of around 35 million houses  Great backup from Biogas Support Program Threats  Fierce competition with gas grid extensions  Antibiotics used in the feed of animals can cause difficulties in production  Forest areas in India hardly serve as the carbon sink Segmentation & Targeting Geographic World region South Asia Country India Cities All major cities of Punjab & Haryana Climate Humid Density Urban and rural EPGDIB (2016-18) | Section-B Page 14 of 27 .Business Development Plan.

female Family size 1-2. achievers. Lifestyle Actualizes.Business Development Plan. Experience’s makers and strugglers Behavioral Benefits Cheap. Project Report .3-4.Bio Gas Demographic Age Applicable in every age group Gender Male.m. fulfilled. Unmarried Income INR 5000 plus p. Occupation From lower to upper class Race Asian Psychographic Social class Lower class to upper class. strivers. User status First time user Loyalty status Optimistic POSITIONING Transformation of useless wastage into cheap and effective energy…! Slogan “Defining the Future” EPGDIB (2016-18) | Section-B Page 15 of 27 . believers.24/7availability.5 plus Family life cycle Married.

We will add 25% profit margin in cost of these two products. For Biogas Cylinders and Electricity we have competitive prices. We have decided to compete by our low price. Project Report . Our whole promotion is based upon our price strategy. We will provide Biogas to nearly located industries through the pipeline. EPGDIB (2016-18) | Section-B Page 16 of 27 . Placement Placement is important factor. It will increase our production and sale and ultimately increase our revenues.Business Development Plan.05. We will offer Biogas based CNG at 25% less price in relation to LPG prices prevailing in the market. 4P’s Product Our basic & innovative product bio gas…! Level of products Core Benefits Cheap energy Basic product Bio gas Augmented Product Consultancy and after sales services like replacement of cylinders Potential Product Different sizes of cylinders will be available in future Price Presently PPC is following brand pricing. For these two products we have “cost plus profit margin” model. Our per unit price will be 8. we will use vehicles to deliver the Biogas in Cylinders form to the end consumer. logo and symbol are its differentiation features. We will provide Biogas Electricity to dairy farms from our production plant. It includes all the company’s activities which make the product available to the market.Bio Gas Service differentiation Services provided by our specialist consultants are added benefit of buying product from the distributors…! Image differentiation Brand’s innovative name.

During this process. Microorganisms convert these intermediate products into hydrogen and carbon dioxide. And we will use different methods: Banners • Personal Selling • Awareness programs • Events • Radio • Public Relations (Words of Mouth) Marketing Strategy Marketing Objectives • Customer value and satisfaction • Creating strong position • Creating strong distribution channel • To achieve better market share • Try to increase growth rate • To provide high quality Production Plan: Biogas generation Biogas develops through anaerobic fermentation. glycerin and fatty acids). Project Report . amino acids. the organic substances are divided into molecular components (sugar. organic substances are decomposed by microorganisms.Business Development Plan.Bio Gas Promotional Mix Company is following four tools of promotional mix It is our goal to spread information “Biogas for better Life” in depth of customer’s mind. The substances added to the system produce the biogas in an oxygen-free environment. which are then transformed into methane and water according to the EPGDIB (2016-18) | Section-B Page 17 of 27 . In the first step.

Project Report .Business Development Plan. • The pH-value should range from 6 to 8 the fermentation must take place in an area sealed off from air and light. The following factors must be considered during biogas production: • Organic substrates must be able to be biologically decomposed by microorganisms.Bio Gas Equation: CO2 + 4H2 ----> CH4 + 2H2O General factors which influence biogas production: The production of biogas is a natural process that functions in suited facilities. EPGDIB (2016-18) | Section-B Page 18 of 27 . • The substrate should contain only a minimum of microbiological restrictors • The temperature during the decomposing process must be within a certain range (35° to 55°C). • The fermentation tank must be mixed at regular intervals.

Business Development Plan. There are total seven (7) members in this organization and actively participating in the organizations activities. Identification of the members This business is private limited and all the members have contributed equal share of amount. The board of director is comprised of one chairman who is selected by the members or board members and THREE board members Chairman board of director board of director board of director CEO Finance Marketing Human Operational Research & Head of technical Manager Manager Resource /Production Development Facility Manager Head Financial Sales & Mechanical promotional Chemist Advisor Trainer & Plant Manager engineer team Recruitment 2 Accountant plant engineer Plant Manager HR Planner 1 EPGDIB (2016-18) | Section-B Page 19 of 27 . Project Report . The term of membership is on the basis of equal share of profits & losses and rewards and bonus are on the basis of the achievement in the respective area of responsibility.Bio Gas Management plan Form of Business The form of business is private limited and established under Companies Act. All the members have equal shares in the company and are responsible for their respective activities as they are performing actively in the organization. Board of Directors The members are also the members of the board of director.

build long term and short term strategies and policies. DESIGNATION (CHAIRMAN) KEY RESPONSIBITIES: Smooth functioning of whole organizational departments. Salary: INR 70.000/- DESIGNATION (HEAD OF MARKET & CONSULTANCY) KEY RESPONSIBITIES: To handle sales. forecast sales. 950/- EPGDIB (2016-18) | Section-B Page 20 of 27 . • Ensuring that the assets are in proper and efficient use of their own. give advices for new product introduction according to the better research and results. 500/- DESIGNATION (HEAD OF R & D) KEY RESPONSIBITIES: To understand the complexities of the biogas plant. Project Report . • Development of network for the efficient working of the organization. promotions and handle the service area of company which is consultancy for other biogas plants. • Major task is decision making. Salary INR 45. new and better plant designs for the further extension of the plant.Business Development Plan. to overlook complete activities of the organization. to find better resources or raw material for quick and more production of biogas. Salary INR 30.Bio Gas Roles and Responsibilities of the Members The responsibilities of directors may include:- • Review of operating and capital budget. find new better and efficient ways to produce gas and electricity. • Resolving conflicts among all the managerial and departmental activities.

provide the engineers and technical staff the required type of material and help. governmental obligations and regulations about the bio hazard and employees.) KEY RESPONSIBITIES: Handle the organizations human resource activities like recruiting. over-look the purchases and the raw material conditions.000/- DESIGNATION (HEAD OF HR MGT. employee safety and health issues. 000/- DESIGNATION (HEAD OF PRDUCTION AND OPERATIONS) KEY RESPONSIBITIES: Provide production facilities.000/- EPGDIB (2016-18) | Section-B Page 21 of 27 . Salary INR 40. 000/- DESIGNATION (HEAD OF FINANCE AND CONTROL) KEY RESPONSIBITIES: Look at the financial position. Salary INR 15. Project Report . handle the books of accounts of the company. rewards and benefits to the employees. look at resources from finance is available. see the difficulties of distribution channels and the better resource for raw material. perform internal audit and annual external audit of the company.Bio Gas DESIGNATION (HEAD OF TECHNICAL FACILITY) KEY RESPONSIBITIES: To see the technicalities of the biogas plant. provide them effective advices about the production and operation of the complete plant. interval inspection of the plant. handle the activities of subordinates. Salary INR 30. give advices according to the financial position to the chairman and the for further strategies of development or product diversification.Business Development Plan. selection. activities and resources of the company. performance appraisals. orientation. technical changes in the biogas plant. motivation. Check the balance of the employees in the organization for excessive and under employed worker Salary INR 20.

physicist. technicians usually work in laboratories testing mechanical. pneumatic. thermal.30pm for all workers EPGDIB (2016-18) | Section-B Page 22 of 27 . private industry. Typical employers include institutions. REWARD STRUCTURE There will be Extrinsic and Intrinsic rewards.30am to 4. government.30pm to 2. technicians use specialized equipment and materials to perform laboratory experiments. Financial Rewards Conveyance allowance (will be 5% of basic salary) Medical allowance (will be 3% of basic salary) Education allowance for children Others Rewards Promotion Career Development Greater job freedom Participation in Decision making Working Hours 9am to 6pm for Desk job 8.30pm to 12. chemical. Working under the direction of an engineer.Bio Gas Key responsibilities of team of R&D In research and development.m for labor workers Shift 3 Lunch Hours 1. and chemist. They may also be responsible for periodic maintenance and repair of equipment. or metallurgist.30am for labor workers Shift 2 12.30am to 8.30a. hydraulic. or optical scientific principles.30pm for labor workers Shift 1 4. Project Report . and the military. They help record data and analyze it using computers.Business Development Plan. electrical.

Bio Gas Leave Schedule 2 leaves will be sanctioned to all employees Succession Planning Out sourcing for lower management level For key position we will consider “REPLACEMENT CHART” Training On the job training for lower and middle management Financial plan Manufacturing Budget of all Three products for 1st 3 Months Month-01 Month-02 Month-03 1. Electricity Projected Sales(MW) "1 MW per day" 0 0. Bio CNG cylinders Projected 0 2000 2200 Sales(Cylinders) Ending 0 60 50 inventory EPGDIB (2016-18) | Section-B Page 23 of 27 . Project Report .8 MW/day 0.8 MW/day 2.Business Development Plan.8 MW/day 0. BIO compressed gas to Factories Projected Sales (m3) 0 1425 1430 Ending inventory Available for 0 1425 1430 Sale Less: Beginning Inventory Production 0 1425 1430 Required 3.8 MW/day Ending 0 0 0 inventory Available for 0 0 0 Sale Less: Beginning Inventory 0 0 0 Production Required in Mega Watt 0 0.

53 156.Bio Gas Available for 0 2060 2250 Sale Less: Beginning Inventory 0 50 60 Production Required 0 2010 2190 Pro Forma Income Statement.05 7.51 151.27 Gross Profit 43.74 34.59 Salaries & Wages 5.07 Less: Operating Expenses 4.81 194.Business Development Plan.09 EPGDIB (2016-18) | Section-B Page 24 of 27 .98 17.63 345. Project Report .74 88.79 68.26 44.34 Less: Cost of goods sold 56. Three Year Summary(in millions ) percent Year1 Year2 Year 3 sales 100 79.

39 15.39 8.51 1.49 2.Business Development Plan.44 46.16 6.20 16.06 Profit after tax 19.19 0.91 11.98 3.36 5.21 Total operating expenses 13.20 2.23 30.10 0.53 21.51 1.36 5.15 0. Project Report .23 13.30 0.21 Fuel expenses 3.13 0.65 Insurance 1.20 2.73 Licensees 0.03 Tax at 35% 10.79 48.97 EPGDIB (2016-18) | Section-B Page 25 of 27 .04 Profit before tax 29.37 66.Bio Gas Office Supplies 0.51 1.73 103.83 23.36 5.21 Depreciation 1.35 36.00 Other 1.00 0.

Bio Gas Generic Value Chain for Biogas Risk Assessment Level of Risks “Sustainable Energy” Company faces only execution and startup risks. There is no market and product branding related risk for the EPGDIB (2016-18) | Section-B Page 26 of 27 . there is no other risk except some level of financial and product execution risk. The overall environment is very helpful for the company operations and its sales. Project Report .Business Development Plan.

the study revealed that biogas enrichment and compression system is a profitable venture for rural areas due to availability of large quantity of cattle dung. Overall. Project Report . low-cost and suitable method for enrichment of biogas in rural areas. The some initial level changes have to make for efficient production. Biogas produced in large size biogas plants should be enriched before bottling for storage and mobile purpose. The management of the company is inexperienced and some control risks are exists. The system is recommended to establish rural entrepreneurship for the effective utilization of local biomass resources for production of biogas energy in decentralized manner and sustainable rural development. The gas estimation and generation is important in this whole process of energy generation. as enriched biogas has more calorific value and better fuel quality. the major risk is of late payment. Conclusion There is large potential of biogas generation in India to make it an alternate fuel for vehicle. water scrubbing is found to be a simple. The company is selling to dairy farms so. Out of several methods of biogas enrichment. EPGDIB (2016-18) | Section-B Page 27 of 27 . There is no direct competition and risk is attached with the company technology. Product and Execution Risk This is the point of concern for the company at the initial level that companies estimate may be wrong and some major changes have to make for meeting the actual requirements. Financial and control Risk Company faces the risk of capital arrangement in the start of business.Bio Gas company because the company is serving in the necessities of life which are going to be extinct in near future so the company has a great scope for its products and services. The owners of the company committed to the Islamic mode of financing so there is lesser chance to obtain debt financing.Business Development Plan.