2011

Go Green
Carbon Consultancy
A business plan for the set-up of a carbon consultancy firm.

Krishan Singh Negi Nishant Priya Shahzad Ahmad

BFtech. VI NIFT 12-May-11

1.0

Executive Summary 1.1 Objectives

2.0 Company Summary 2.1 Company Ownership 2.2 Start-up summary 3.0 Services 4.0 Market Analysis Summary 4.1 Market Segmentation 4.2 Target Market Segment Strategy 4.3 Service Business Analysis 4.4 Project Feasibility 4.5 Success stories 4.6 Risk factor 5.0 Strategy and Implementation Summary 5.1 Competitive Edge 5.2 Marketing Strategy 5.3 Sales Strategy 5.3.1 Sales Forecast 6.0 Management Summary 6.1 Personnel Plan 7.0 Financial Plan 7.1 Start-up Funding 7.2 Important Assumptions 7.3 Projected Profit and Loss 7.4 Projected Cash Flow 7.5 Projected Balance Sheet

1.0 Executive Summary The consultancy Go Green to be located in Gurgaon NCR, will cater to The needs of carbon trading on behalf of Indian industries in compliance to the rules of the UNFCCC. It will provide the following services:

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Carbon Advisory Solar Advisory & Project Execution Energy Audit Green Building Consulting

The services will be spread across all verticals of the Carbon Sector and it will provide a complete package to its clients from generation to trading of emission reductions in compliance as well as voluntary markets.

Highlights:

which has become a major threat to the entire globe. Build a strong base of satisfied and hence loyal customers. . manage risk and regulation. 2. This means we will work across the spectrum of climate change and carbon markets. We will help organizations secure distinct business advantage in Carbon Markets. planning to scale up to become a 360° Green Solution provider.0 Company Summary Go Green is a social entrepreneurial venture blossomed with a motive of saving the global environment in a unique and innovative way. simplify complexities and derive benefit from rapidly growing global emissions market. audits. We will consult with our clients to develop carbon offset projects. Ensuring that our clients are able to successfully and effectively navigate the confused landscape of carbon emissions is our priority. Foster innovation Facilitate long-term business planning Become the premier carbon consultancy in India within five years. renewable energy and sustainable development at large. hence covering all shades of green. Everybody is aware of the rising problems due to the depleting nature of the fossil fuels and the energy crisis. We shall provide our clients with information. and leverage experience and expertise in managing carbon assets.1. and reduction strategies and offset procurement in line with carbon best practice. It will support companies and individuals to reduce and manage their carbon emissions. education.1 Objectives Go Green has identified the following objectives that it will pursue for the long-term success of the business:       Low cost approaches to emission reduction. Our aim is to support them to identify opportunities.

. whichever will better suit the future business needs. computer. Costs will also be designated for the purchase of a laser printers and a scanner. The communications equipment necessary to provide Go Green's customers with a high-speed connection to the Internet and the services it has to offer make up a large portion of the start-up costs. A single estimated figure will be allocated for this purpose. owned by its founders. furniture and capital to cover possible losses in the first year. As the business grows.2. The renovation/ modification cost estimate will include the costs associated with preparing the site for opening business.2 Start-up Summary Go Green's start-up costs will cover site renovation and modification. These costs will include the computer terminals and all costs associated with their set up. the owners will consider re-registering as a public limited liability company or as a corporation.1 Company Ownership This business will start out as a private limited. 2. and the communications equipment necessary to get its customers online. The site will require funds for renovation and modification.

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etc. and used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol.). which require carbon credits to offset their emissions. According to United Nations Framework Convention on Climate Change (UNFCCC). simplify complexities and derive benefit from rapidly growing global emissions market.D. and leverage experience and expertise in managing carbon assets. . "Clean Development Mechanism (CDM) allows emission-reduction (or emission removal) projects in developing countries to earn certified emission reduction (CER) credits. As the projects attract huge investments. the most popular being Clean Development Mechanism (C. manage risk and regulation.3." Carbon Advisory service is a boon to the project developers in the field of Renewable Energy and Energy Efficiency.0 Services: Our Services We help organizations secure distinct business advantage in Carbon Markets. Our aim is to support and identify opportunities.M. There are various models to trade the carbon credits. energy efficiency. It shall include: Carbon Advisory Emissions have become a major threat to the sustainable global development. availing the benefits of carbon credits can be an additional benefit and a source of income. The developing countries with their emission reduction projects such as implementation of renewable energy. can trade the carbon credits to the developed countries. each equivalent to one ton of CO2. We consult with our clients to develop carbon offset projects. These CERs can be traded and sold.

" This service is mainly focused towards the architects and the builders.B. and identifies energy and cost savings opportunities" The Energy Audit team of Go Green shall be led by well experienced Energy Auditors certified by the Bureau of Energy Efficiency (B. an Energy Audit is defined as follows. conserves natural resources. optimizes energy efficiency.C. . The energy auditor starts at the utility meters. (United Nations Framework Convention on Climate Change)  Win . quantifies those energy streams into discrete functions.E. Benefits  Comprehensive solution package  Reduced Energy Expenses  Optimal utilization of incoming energy  Safer and non-hazardous working environment Green Building Consulting According to the Indian Green Building Council (I.).E.E. A preliminary audit paves way for a detailed energy audit.  Detailed Energy Audit A detailed energy audit process clearly identifies the exact source of energy wastage and the potential for energy efficiency. evaluates the efficiency of each of those functions. a basic idea of energy consumption and the scope to reduce the unwanted energy consumed is identified.) There are two types of energy audit being done  Preliminary Energy Audit During the preliminary energy audit.F. "The energy audit evaluates the efficiency of all building and process systems that use energy.N.C.) for electrical appliances and buildings facilitated. as compared to a conventional building.C. Assistance for star rating approval from the Bureau of Energy Efficiency (B. The implementation can also be undertaken as per the interest of the client. "A green building is one which uses less water. The detailed costing for implementing the solutions is also given. generates less waste and provides healthier spaces for occupants.Win situation for the investor and the project owner Energy Audit According to the Bureau of Energy Efficiency. The auditor then identifies energy streams for each fuel. locating all energy sources coming into a facility. we have learnt infusing energy efficiency in the nascent stage of construction helps in energy cost saving. who are involved in property development. Through our experience.G.Benefits  Earnings for Green Investments  Project accreditation from the U.C.E.

E. facilitation for Green Building Accreditation from Indian Green Building Council (I.(G. the type of solar technology.G.R.A.I. Thus constructing a green building can help you in reducing the energy cost. the return on investment. based on the energy consumption pattern. Also we undertake its installation. thus being a one stop for the client.B.H. Benefits  Live in an eco-friendly environment  Reduced energy and water consumption  Increased Asset Value Solar Energy Solutions Solar Energy Solution gives a comprehensive data of the capacity of Solar Power Plant. We do not just design the solar energy solution. energy efficiency approach is followed wherever feasible. United States Green Building Council (U.R. Apart from such services.S. the space required.G.) and The Energy and Resource Institute –T. The various energy efficiency measures offered to reduce unwanted energy consumption include  Energy Auditing  Green Building Design . Energy efficient measures are practiced in the following areas  Interior Design  Ventilation  Lighting Apart from these areas.C. – Green Rating for Integrated Habitat Assessment) is also done.C.The main aspect in this service is the energy efficient approach.I.). etc. . rather we identify the ways to reduce an unwanted energy consumption which can be avoided even before implementing our solution.B.

parabolic troughs and central receiver are some of the technologies under solar thermal. Segments Targeted  Residential apartments/Townships  Small and Medium scale Industries  Schools and Colleges  Other commercial Enterprises We work as a team with architects. parabolic dish. Based on the nature of requirement. Uses sun’s light to produce energy 2. . They are  Solar Photovoltaic (PV) 1. electricians. constructors and other key stakeholders to execute the project in an efficient manner. We offer this solution for both existing as well as new buildings. Technology There are two types of technologies used to tap the power from the sun. Flat plate collectors. Monocrystalline. Widely used for lighting and power plant applications 3. LED Lighting Solutions A suitable and economical solution is chosen and implemented. Polycrystalline and Thin film are the popular technologies under solar PV  Solar Thermal 1. Widely used for heating and power plant applications 3. financing can also be facilitated to the clients. Uses sun’s heat to produce energy 2. Evacuated Tubes. so that an efficient solar energy package is set in place.

With Battery Back up The battery backup is required in the following cases 1.) Connection 1. Energy from the solar photovoltaic power plant is required during the night time 2. Energy from the solar photovoltaic power plant is required only during the day time . The power from the Solar Photovoltaic Power Plant can be used for meeting out the energy needs and the power from Grid can be used when the energy from solar photovoltaic power plant is not sufficient.B.) Connection (Off Grid) 1. 1. With battery back up 2. Back up is required when there is lack of proper sunshine days  Schematic Representation of Grid Connected Solar PV Power Plant with Battery Back up 2.The most popular ways of designing the solar photovoltaic power plant are given below  Solar Photovoltaic Power Plant with Grid (E. With battery back up 2. Without Battery Back up The battery backup is not required in the following cases 1. The vice versa can also be done.B. Without battery pack up  Solar Photovoltaic Power Plant without Grid (E. Without battery pack up Solar Photovoltaic Power Plant with Grid Connection Solar Photovoltaic Power plant is built and is connected to the Grid.

thereby preventing any energy bills from the electricity board. With Battery Back up The battery backup is required in the following cases 1.2. There is no connection to the grid. Back up for the non-shine days is not required Schematic Representation of Grid Connected Solar PV Power Plant without Battery Back up Solar Photovoltaic Power Plant without Grid Connection (Off Grid) The entire energy requirement is met through the Solar Plant. Energy from the solar photovoltaic power plant is required during the night time 2. Back up is required when there is lack of proper sunshine days  . 1.

Back up for the non-shine days is not required A Schematic Representation of Off Grid Solar PV Power Plant without Battery Back up Benefits of Solar Energy Solutions  Comprehensive package explaining all the technicalities involved  Relief from huge electricity bills  One time investment with quicker R.O. Energy is needed only during the day time 2.  80% depreciation benefit in the first year for Solar PV Products .I.A Schematic Representation of Off Grid Solar PV Power Plant with Battery Back up 2. Without Battery Back up The battery back-up is not required in the following cases 1.

Fluctuations in EUA market cause price fluctuations in CER market.0 Market Analysis The CDM market is like any other commodity market. In the issued CER category. The success of Bali conference has also set in motion a process that will define the structure of carbon markets for decades to come. India ranks second after China. gates have opened up for a giant market that would serve to foster more opportunities for profit in the international carbon trading game. In the wake of the first commitment period. With Australia ratifying the Kyoto Protocol. Currently. However. The CDM market is rising sharply and is getting matured with time. India has the largest share in the pie-32%. Thus the volatility of EUA market is inherently transferred to the CER market.g. with UK leading the way. In the registered projects category.4. . we already see countries like Canada and Japan not able to meet their targets. The CER market is an evolving market and has not yet become matured enough to be completely independent. This only serves as an indicator that as the first commitment period advances. it is the second largest carbon market after the EUA market. In other words. Japan is the second largest buyer followed by others. The market is nearly doubling every year. Prototype Carbon Fund of World Bank) Traders Voluntary markets European buyers majorly dominate the CER market. It is estimated that a global carbon market worth EUR 240 . The secondary market has not yet expanded as much as the primary market mainly because of the high volatility of the carbon prices. Majority of the trading is done in the Primary market and is mostly OTC (Over The Counter) type. The Buyers of CERs can be broadly classified into     Compliance Buyers (Annex I countries who have got emission reduction targets under the Kyoto Protocol) Carbon Funds (e.450 billion would be created by 2020. The CER market is closely linked to EUA market. India has a good climate for investment in CDM projects. India is a big market for CDM projects and is the second most attractive destination for CDM project participants. the CER prices will show an upward rise.

CERs Issued: Projects Registered: The total number of projects registered till March 2008 was 1053 and the total number of CERs issued were 133 million. the market’s worth expanded to US$ 143 billion in 2009 from US$ 10 billion just 4 years prior to that. trading volumes of 65 million tons of CO2 with a growth rate of 240% in just one . With its juvenile fledgling industries India is in a position to develop and implement new eco-friendly technologies that are highly energy efficient according to standard international norms simply by mass employing the enormous youth labor workforce at its disposal. Currently the Voluntary Carbon Market is estimated at $330 million. Some estimates predict a potential of up to US$ 1 trillion by 2020. Summary: The explosive growth of the carbon market in the last 5 years has established it as one of the fastest growing financial markets worldwide. and has roughly another 140 million to push into the world market. the registration process is getting more and more stringent lately mainly to safeguard the mechanism’s integrity and the quality of CERs. According to a World Bank report (“State and Trends of the Carbon Market 2010”). India has generated some 30 million carbon credits the 2nd highest in the world. However.

Bagasse-based cogeneration Prod. of Pozzolana cement . fuel conservation. (Hamilton May 2008) Companies Tata Steel Kesoram Ind Registered CDM projects Waste heat recovery-based power project Steam system upgradation Jaya Shree textiles Energy efficiency ACC Birla Corp JK cement JCT RIL USWL Shree Cement TNPL Rana Sugars Ultra Tech Cement Blended cement Blended cement Waste heat recovery-based power project Small-scale biomass Energy efficiency Cogeneration Optimal utilization of clinker Methane extraction. Experts predict this to grow exponentially to volumes of up to 1400 million tons of CO2 being traded by 2020.year.

2 Growth Source: IMF. which is a great impetus for establishment of Indian carbon trading market Rapid economic growth: Since 1990 India does not look ordinary at all. It has been one of the fastest-growing economies in the world. re-use of resources and GHGs emission reduction without advanced technology and ample capital.United Phosphorus Nahar Spinning Natural gas as fuel Rice husk-based cogeneration SWOT analysis of the Carbon Market: The SWOT analysis provides us with an opportunity to examine the internal strengths and weaknesses Go Green must address. It also allows us to examine the opportunities presented to Go Green as well as potential threats. India is not included in any numerical limitation on CER of the Kyoto Protocol. are lagging in energy efficiency. Conventional wisdom traces the growth acceleration neoliberal economic reforms implemented under the government of Narasimha Rao.2% 7. Many extensive industries. a host of developed countries are attracted to provide capital and technology in exchange for CERs. such as mining. the space for emission reduction is extraordinarily huge in India. with a doubling time for average GDP per capita of only sixteen years. Period 1950-1980 1980-1990 1990-2000 2000-2010 Annual Real GDP 3. India has since become a substantial greenhouse gas emitter. paper and chemical.9% 6. because it was not one of the main contributors to the GHGs emissions in the pre-treaty industrialization period. Yet the timing of the growth acceleration suggests an earlier start for the current Indian boom under the government of Rajiv Gandhi. However. .7% 5. Strength Huge emission reduction space with extensive industry : As a developing country. With enormous potential for CER and cheap labor. Therefore.

Huge potential of Indian emission trading India is still in the process of industrialization with a host of extensive industries which have contributed much to GHGs emission. it is technology that can provide them sustainable and extraordinary profits. carbon emission trading absolutely will go forward at an astounding speed. On the contrary. a qualified professional on emission trading should involve not only finance and environment but also laws and management. Moreover. In addition. there is no doubt that India would be obligated with emission reduction in the not too distant future. Therefore. For example.Lack sufficient attention of related companies : Without adequate knowledge out the newly emerging market. with backward . many relevant and potential derivatives on carbon emission trading are still waiting to be explored. as a considerable emitter in the world and a developing country with a high speed economic growth. Lack of relevant professionals : As a new and emerging industry in India. many related companies of India do not pay enough attention to it. However. especially to its additional development potentials. 2.Weakness 1. they lay more emphasis on foreign investment while less on practical technology. Emerging from this kind of background. Opportunity Astounding Development of International Emission Market : The governance of environment is in the best interest of human beings and GHGs have threatened the survival and sustainable development of people. there is no a set of complete and prefect theory about carbon emission trading. information asymmetry resulted from less attention to carbon emission market may lead to a large amount of loss on many respects. Indian carbon emission market definitely would be promoted by this trend. both of which have made it undeniable that multi-nations should take effective measures to curb the deterioration of environment. Furthermore. Also. the price of emission trading in India is less than international average level because of lacking sufficient knowledge about international emission trading market and related companies. which makes it more difficult to nurture adequate and relevant professionals. Due to the scarcity of qualified professionals. the seeking of compound talents with interdisciplinary qualification is a tough task that cannot be perfectly completed in the short term. Thus.

these developed countries can acquire corresponding CERs to meet their committed emission reduction . where developed countries can obtain pretty cheap labor. the process of approving a CDM project is complicated for it often takes several months arranging from 3 months to 6 months to complete a whole approval. many resources are not in the best utilization in these industries. indicating that China will be the first strong competitor of India. However. However. On the other hand.production and technology. India definitely would be committed to share the obligation of carbon emission reduction in the near future. For rewarding. we are still actively exploring and researching emission trading. Also. we are still actively exploring and researching emission trading. Additionally. Lastly. Threat 1. Pressure of emission reduction It is claimed that as substantial emitter in the world and internationally continuous upgrading of economic and political position. Competition from other countries Although the number of Indian registration projects is far beyond many other countries. indicating that China will be the first strong competitor of India. despite foreign capital support. In addition. major industries of India are labor-intensive. . India has established two relatively mature carbon emission trading exchanges. 2. the significant investment is still beyond the capacity of Chinese SMEs. mature carbon emission trading exchanges. this responsibility is bound to exert negative impact on Indian emission trading. the involved extensiveness of CDM projects is not enough compared with China. Finally. it has been suggested that as the second-largest provider of CERs. its successfully registered projects are less than such other developing countries as China and Brazil. developed countries which need to meet their emission reduction targets urgently have advance technology that can largely enhance energy efficiency of Indian industries.

Prototype Carbon Fund of World Bank) Traders Voluntary markets .4. The CER market is closely linked to EUA market.1 Market Segmentation The CER market is an evolving market and has not yet become matured enough to be completely independent. The segment is divided into:    Compliance Buyers (Annex I countries who have got emission reduction targets under the Kyoto Protocol) Carbon Funds (e. Fluctuations in EUA market cause price fluctuations in CER market.g. Thus the volatility of EUA market is inherently transferred to the CER market.

not overriding economic factors.e. from someone who is successful in meeting these targets . First. Another factor that has contributed to the growth of green power is that it has become increasingly cost effective to make business decisions while taking into account the decisions impact on the environment.4.2 Target Market Segment Strategy Industry-Wise Opportunities Go Green will assists them in analyzing their projects by providing a list of opportunities for different industries. This can be explained by several factors.3 Service Business Analysis: The carbon consultancy industry is still in its infancy. 4. This helps in acquiring carbon benefits and enables them to contribute to environment protection. For years an environmental decision was based on personal consciousness and ethics. so the market demand is far from saturated and scope of a new business venture is very bright. Now money can be saved when environmental impacts are taken into account.4 Project Feasibility: Technical Feasibility: The companies in the developed world are required to meet certain carbon emission target set by their respective government. Sectors Covered:         Cement Industry Sugar Industry Textile Industry Paper and Pulp Industry Power Sector Oil and Petrochemical Industry Iron Steel Industry Transport Industry 4. However if these companies are not able to meet their emission targets. people are becoming more environmentally aware these days. they have an alternative of purchasing these carbon credits from the market i.

Financial Feasibility: The proposed project would require only the basic infrastructure so as to deal with clients. Moreover India is a Party to the United Nations Framework Convention on Climate Change (UNFCCC) and the objective of the Convention is to achieve stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. The National Commodity and Derivative Exchange by a notification and with due approval from Forward Market Commission (FMC) launched Carbon Credit future contact whose aim was to provide transparency to markets and help the producers to earn remuneration out of the environment projects. There is Dynamic.and who has a surplus of these credits. For this an initial investment of rupees 5 lakh is estimated.Indo German Energy program (IGEN) will help generation of tradable carbon credits. What is prevalent is the usual registration process under the company’s act. In such scenario a carbon consultancy would be bridging the gap between the buyers and the sellers. providing industry with an excellent opportunity to generate large volumes of carbon credits from energy efficiency and clean energy projects. Carbon trading is very advantageous for the companies of the developing world as it provides monetary gains in exchange of carbon credits which help these companies to purchase or change their technology. This investment is justified in terms of its being not so huge and also keeping in mind the future returns . Hence it is expected that it will receive encouragement from the various strata of the society. This simplifies the process and makes its hassle free. As of the educational qualification since there is no strict directive anyone interested in these fields can venture. A lot of effort was put in by the NGOs and other institutions to bring the attention of the world towards the problem of global warming. The government on its part to promote the projects of this nature clears CDM projects almost as soon as they are submitted. India’s dominance in carbon trading under the CDM of the UN Convention on climate change is beginning to influence business dynamics in the country. Social Feasibility: Since the project is concerned with offsetting the carbon emission it will help in improving or at least checking the deterioration of environment. Legal Feasibility: Government of India has recognized carbon credit as commodities. transparent & speedy processing by Indian DNA (NCDMA) for host country approval also MoU Signed between MoP and GTZ (Oct 2006). Moreover India’s dependence on fossil fuels creates high carbon intensity. There are no special criteria to register oneself as a carbon consultant in India.

2.high potential of carbon credits b) India can capture 10% of Global CDM market c) Annual revenue estimated range from US$10 million to 330 million d) Wide spectrum of projects with different sizes e) Vast technical human resource f) Strong industrial base All these facts indicate that this business project has a bright future in India and is expected to grow in the years to come. registration and trading of Certified as well as Verified Emission Reductions (CERs and VERs). • 2 MW biomass power project is being implemented by Helios Renewables Pte Ltd. India with technology partners as US based Indus Terra Energy. It is expected that India will gain at least $5 billion to $10 billion from carbon trading (Rs 22. Having cornered more than half of the global total in tradable certified emission reduction (CERs). This is supplemented by the facts that the Indian market is extremely receptive to CDM projects. Nearly 850 projects with an investment of Rs 650.it would be giving. • First poultry waste based power plant setup in Haryana. 4. It is today one of the most aggressive and energetic carbon consultancy’s in India with proficiency n generation. and managing a portfolio of almost 150 million carbon credits. India’s dominance in carbon trading under the CDM of the UN Convention on climate change is beginning to influence business dynamics in the country. It is the first exchange in Asia to trade carbon credits. they are amongst the top three climate change companies in India and amongst the top ten carbon consultants in the world. They offer Carbon Advisory Services under the brand Gensol and Strategic Advisory Services under Green Karma.000 million are in the pipeline. . Emergent Ventures (EVI): In less than five years.000 crore) over a period of time. India has generated approximately 30 million carbon credits and approximately 140 million is in run. better known as carbon credits. Ltd. Carbon is also now being traded on India’s Multi Commodity Exchange.500 crore to Rs 45. conducting the largest transaction in the voluntary market. GCPL has been providing services to over 350 clients in 4 different verticals under four companies. bio technology and BPO sectors. And the other two companies overlook the Asset Management and the solar segments. The carbon trading market in India is growing faster than even information technology. This has been earned by completing 40 registrations of carbon credit projects. the second highest transacted volumes in the world. a) India .5 Success stories of carbon consultants in India: 1. Gensol Consultants Pvt.

Past track record of the employees in achieving high growth will enable us to replicate the management efficiency they have exhibited in their past successful projects. skilled sales executives. Based on the innovations and client first philosophy some of our major accomplishments are:  Served cumulative project capacities over 1000 MW in renewable energy sector  Served more than 200 projects  Number of registered CDM projects and many more in pipeline  Esteemed national and multinational clients like GTZ. Aggressive growth plan may strain organizational resources Aggressive growth plans of the Company may strain organizational resources. 2. Hiring human resources. NABARD. Utilities. A bigger size entails professional management and different processes and controls. Most industry players feel that there is a significant shortfall of resources trained in CDM-specific skills sets. Scarcity of skilled manpower Manpower is an important factor in the Consultancy Industry. vendor management. Zenith Energy: It is a leading professional services company in India and actively involved in providing the techno-commercial services in the energy sector. so the demand for trained human resources has increased during the past few years and will further increase in the coming days. and a very high capital investment. risks and .6 Risk Factors 1.(a JV between EVI and Ankur Scientific). An aggressive growth plan will need better management bandwidth. Go Green can achieve its targets by a proper advertising of its various services through various media channels and through effective customer relationship which helps push through its aggressive growth plans. 3. The Domestic Industry though not very large but is growing at a fast pace.  Investing in RE projects in the sectors of wind and biomass 4. • Project Development services for 25 MW solar PV plants in Gujarat. operational skills to handle business in multiple locations. A company that has put its plans in place undertakes a sudden increase in activity to gain faster market share. ADB. Zenith was an early entrant in the CDM consultancy services way back in 2003. etc. and also marketing. training and retaining are very crucial to this type of services organizations. State nodal agencies. More and more domestic consultancies are being opened. The proposed company. • Policy work for international institutions and government.

.challenges facilities management. For increasing the operational efficiency and reducing a high attrition rate we will provide proper training and loyalty benefits to our employees. This has resulted in high attrition rates and rising costs to hire and retain people. customer relations. In addition. hindering the aggressive ramp-ups of most retailers. we are confident to recruit the best talent in the industry and further retain them. With its employee friendly policies. and branding. the Company will pay a fair amount as compensation and rewards for the crew’s work and achievements.

To reach the end user customers. . web banners.1 Competitive Edge        One stop for energy efficiency services Well experienced and qualified technical experts Solutions that yield quicker Return on Investment Makes you part of the Global Green Community Strategic Tie-ups with the market Marketing-planning for the client Turnkey projects 5.3 Sales Strategy The sales strategy implicitly and explicitly takes into account the philosophy that the reason that many of the people are attracted to Go Green is because of its personal environmental ethics.We believe that participating in the seminars will be an effective way of meeting many of the potential customers and allowing them to become familiar with Go Green’s expertise. 5. The sales strategy will leverage this desire with the fact that environmental decisions can have positive economic impacts in the long term.2 Marketing Strategy The marketing strategy is based on developing an awareness regarding Go Green to both industries and the end use consumers. Go Green will use advertisements in the local and national paper. Go Green will present customers case studies and quantifiable data proving economic justification. For this strategy to be effective.0 Strategy and Implementation Summary 5. As a means of increasing visibility of Go Green will participate in several community-based seminars that serve as a free source of information . magazines.5. Green Power will strongly use networking as a means to develop relationships with many of the prospective clients. Google advertisement as well as within the yellow pages. It will also explore the possibilities of marketing through social network channels. Therefore the sales strategy will leverage the competitive edge of economic justification as the method for turning sales leads into customers.

1 Sales Forecast Sales will be high as this is a very new and emerging market. As Go Green increases its customer pool and more industries become familiar with our services.5. .3. Growth will be forecasted and referenced as steady. Currently the Voluntary Carbon Market is estimated at $330 million. business will grow. trading volumes of 65 million tons of CO2 with a growth rate of 240% in just one year. Experts predict this to grow exponentially to volumes of up to 1400 million tons of CO2 being traded by 2020.

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0 Management Summary Go Green will be made up of five employees and three owners. It will include two Consultants-cum-auditors. maintaining the accounts receivable files. An administrative assistant will also be hired and will be trained in.1 Personnel Plan: Consultants-cum-auditor : 2 Sales and Marketing: 1 Administrative: 1 Security: 1 . etc. And one Security in charge. 6. One sales and marketing personnel.consultancy related work. scheduling of audit.. It is planned that this assistant will take substantial paperwork and mundane computer work away from the owner as well as much of the non. This would include recording receipts. customer files.6.

Additionally a sum of five lakhs will be borrowed from the bank to meet the expenses of the first year and keep some cash in hand as a cushion.0 Financial Plan 7.7.2 Important Assumptions NOTES FOR PROJECTIONS All sales projections/assumptions are based on the following: . 7.1 Start-up Funding All the three owners will invest a sum five lakhs each.

Contract services include: payroll. 3. The income tax rate is estimated before deductions and overhead assumptions are included. . All pricing has been set by industry standards and the local market. 4. pest control. Our long-term commercial loan is amortized at 8% interest over 20 years. the company expects to continue its steady growth in profitability over the next three years of operations. 5. trash removal.1.3 Projected Profit and Loss: As the Profit and Loss table shows. Employee needs and wages have been projected for full time and eight hour shifts. and internet. 7. 2. All payrolls will be done through a payroll company. therefore giving a flatter rate and making it easier to project.

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Furthermore. With the ability to generate so much cash flow.7..4 Projected Cash Flow As can be seen from the Cash Flow chart and table below. it is assumed that the company will seek to use this asset to expand its markets and production capacity in the near future. the company has a very low cost of service prided account and therefore a high gross margin. Go Green has a number of advantages that provide for a large amount of growth in the company's cash account. the custom nature of the business means that there is no inventory cost to speak of or accounts payable. . Because it is the policy of the company's clients to provide the services directly.

7.5 Projected Balance Sheet The following table presents the Balance Sheet for Go Green .

Appendix .