PREP

Kesher Sumeet(20091019)

Sudhanshu Goel(20091051)

Swapan Oreya(20091053)

(2
 Why Biodiesel ???

Need for Biodiesel …..

ØRenewable fuels & Sustainable
ØEnergy Independence
ØForeign Exchange Savings
ØRural Development
v Job Opportunity
v Waste Land Development
ØEnvironmental Benefits
v Emission Benefits
v Energy Cycle and Green House Gas Balance
ØBetter Lubricity
 Several Decentralized Mechanized
Energy Units Agricultural
Sector
Irrigation
Diesel Gensets , Pumps ,
Small Scale / Home Industries Agricultural
Machinery such as
Tractors , Power
Transportation Tillers , Threshers
System etc . ( Self -
sufficiency for
the Farmer
 Biozone Chemicals
Ø Product: TWIESEL (high yielding extract from Jatropha Curcas
plants ).
Ø Description: Oil extract which can be used in the ratio of
40:60 where 40 % of Jatropha extract and 60% of mineral
diesel.
Ø Operations: India, Nepal and Bangladesh .
Ø Requirements of the customers are considered the foremost.
Ø Aspiring to be a market leader in the Biodiesel market through
R&D and technical knowledge.
Ø Well-developed upstream feedstock business in India.
Ø Extensive field network to manage harvesting, storage,
extraction and transportation of Jatropha oil and seeds.
Ø Vision: To be a global leader in renewable energy
provider by delivering high yield biodiesel at par

with mineral diesel.

Ø
Ø Mission: Biozone chemicals would achieve its

leadership by differentiating itself by means of

innovative product which would be cost effective and
reliable thus replacing mineral diesel in long run.
Ø
Industry analysis
 Demand forecast for biodiesel
Year Total Projected Total % of Biodiesel % of Biodiesel
Supply of Jatropha Biodiesel Supplied by supplied by
(MMT) Production Jatropha Twiesel
(MMT) (Forecast)

2009 0.5 16.9 3 1

2010 2.1 20.2 10.4 6.5

2012 6.5 29.2 22.3 12.5

2015 15.5 50.3 30.8 20.5

 jatropha biodiesel Industry concentration

Year Numbers of Jatropha Biodiesel Companies

2000 5

2003 20

2005 60

2008 100

2009 125

2010 200 (forecast)

Ø Major Competitors: D1Oils, Mission Biofuels, Sun Biofuels, GEM
Biofuels, Jatoil Limited.


Ø Core Competencies: Innovative product due to well developed R&D

and also strongly Customer focused.


Ø Competitive Advantage:
v High quality Jatropha extract .
v Scaling operations & organization strategies for Jatropha as
per local conditions
v Timely delivery due to our large quantity of feedstock.
v Going socially responsible, environmentally and carbon
positive for Jatropha plantation and extraction
v Retaining brand name for long time which enhances, client's
security & trust.
v Customer satisfaction and value addition in our business.
SWOT Analysis
 Business Markets
Ø Factors affecting markets
vFavorable geographic regions for plant
cultivation
vAreas with unfeasible and cost
ineffective energy resources
vRising concern for environment friendly
fuels
vDemand-Supply gap
vTechnological advancements
 Business Target Market
Ø India tops the chart in Jatropha Plantation Worldwide
with 1 million Ha
Ø Food production and transport dependent on diesel
engines
Ø Consumption is expected to rise at an annual 5.6% rate
by 2011 and by 65% until 2021
Ø Doesn’t require engine modification up to 50% blend
Ø Public and Private OMCs
Ø Auto Industry companies – M&M, TATA
•
Market Share
Product Strategy
 Product Description
Ø Twiesel is a high yielding extract from Jatropha
Curcas plants which has been genetically modified
with the use of innovative technology to enhance the
efficiency of commercial diesel fuel.
Ø The product is modified rebuy.
Ø Existing condition: 25% biodiesel+ 75% mineral
diesel
Ø Twiesel:50 % biodiesel + 50 % mineral diesel
Ø Value Proposition: The product is a high yield
Jatropha extract which will be added to diesel to
about 50 % enhancing the efficiency of the diesel
fuel
 Advantages associated with the
product
Ø Low cost seeds
Ø High oil content
Ø Small development period
Ø Grow on good and despoiled soil
Ø Grow in low and high rainfall areas
Ø Does not require any special maintenance
Ø Can be harvested in non-rainy season
Ø Size of the plant makes the collection of seeds convenient
Ø Multi products are developed using a single jatropha plant. The
products include bio-diesel, soap, mosquito repellent, and organic
fertilizer.

Ø
 Positioning of Twiesel w.r.t
Competitors

Biozone Twiesel

Eco-Carbone

IKF Green Fuel Ltd

GEM Biofuels

ow Emissions
5-10to: atmosphere
Cost saving
10-Technologies
15 : High Conversion
15-20 : yields
High production
20-25 :capacity
Biodiesel perc
Pricing Strategy
Cost components
 Target Price
  COST ASSUMPTION/REMARKS
Cost of Seed( Rs/Kg Oil) 16.4 Seed Rs 5/kg,Oil yield 33%,
3.28 kg seed->1 kg oil

Cost of collection & oil 2.48 Losses 5%,1.05 kg->1kg oil ,cost@2.36/kg
extraction
Trans-esterification cost 6.67 For 300T/day plant
Cost of Bio-diesel per Kg 25.55  
Less Byproduct(oil cake) -2.23 2.23 kg cake @ Rs 1/kg
Less Byproduct(Glycerol) -3.8 0.095 kg @ Rs 40/kg
Net Cost of Biodiesel per Kg 19.52 As per planning commission
Net Cost of Biodiesel per ltr 16.59 Specific Gravity of oil -0.85
Sale price of Biodiesel to oil 20 Profits @12 %(Rs 2/ltr),Transport @
companies per ltr(excluding excise 0.41/ltr &Interest/miscl @Rs 1/ltr
/sales tax)
Return On Investment
Supply Chain Strategy
 Flow chart

CULTIVATION STAGE come the activities pertaining to the growing of the Jatr

involves pressing of seeds to expel the oil, leaving seedcake. In India, oil is c

DISTRIBUTION AND USAGE STAGE, the oil and the seedcake are consumed or fu
 Market Place
More number of OMC
Growth of plant More number of OMC
Growth of plant
Flexible regulation

High
West South

arket Attractiveness

East North
More number of OMC
Inefficient growth of pl
Low

Low High
Realization
nefficient growth of plant
tringent regulation
voidable
Promotion Strategy
Promotion Plan
 Advertising
Ø Informative Advertising
v Features of New Product
v Customer value
v Working of New Product
Ø Educating the Customers
Ø Advertising Theme
Ø Advertising Media
Ø Advertising Budget
Ø Advertising Effectiveness
Ø
 Advertising theme
 ‘’The next generation Sustainable
Fuel”

 Advertising media
Ø Media Class
vPrint Media- 75%, Electronic Media- 25%
Ø Media vehicles
vPrint Media- Industry specific Magazine,
Energy Journals
vElectronic Media- e-marketing websites,
Sustainable energy related sites
Ø Media Option
 Media Option
Ø Industry specific journals- Full Page Colored
Ad, Second Page
Ø General journals- Half Page Colored Ad,
Interior Pages
Ø Scheduling and Timing Decisions
vHigh- Start of Budget year every edition
vModerate- Other time Back pages in particular
journals
•
 Advertising effectiveness
Pre – Execution Post - Execution
ØConcept/ Theme test ØPerformance
ØFinal draft test Evaluation
ØComparing the sales
Test is done by and Profits.
Buying decision
makers across the Differences in the
Industry past sales and
present sales in
accordance with the
advertising cost
rolled out of the
firm is calculated

Audience, Acceptance ,
Frequency
 Advertising budget
Ø 0.2% of Total Sales
tisement Copy
 Direct mails, Trade Fairs

Ø Litmus test for responsiveness

Ø Direct mail database
v Focus on the best prospective customers
v Cross-sell related products
v Launch new products to existing customers
Ø Boutiques In trade shows
v Brochures and Explanation
v Large customers
–
 Personal Selling
Ø Buying Situation
v New Task
v Modified Re-Buy
Ø Buying Center

Users Engineers, Consumers- Initiate the Buying
Proposal, concerned about product
Influencers Technical
compositionpeople- Evaluation of
alternatives
Buyers Purchase dept Officers- selection between
vendors, Suppliers, Negotiation
Deciders High level officers- buyers essentially
deciders for complex products
Gate keepers Technical personnel- control the flow of
Information
Buying process
 Selling Effort
 Sales force characteristics:
Ø Prospecting - trying to find new customers
Ø Communicating - with existing and potential customers about the
product range
Ø Selling - contact with the customer, answering questions and trying
to close the sale
Ø Servicing  - providing support and service to the customer in the
period up to delivery and also post-sale
Ø Information gathering  - obtaining information about the market to
feedback into the marketing planning process
Ø Allocating  - in times of product shortage, the sales force may have
the power to decide how available stocks are allocated

 Buyer Seller Relationship

Market & Situational Determinants



Ø Availability of alternatives - High

Ø Supply Market dynamism - Low
Ø Importance of supply - High
Ø Complexity of Supply - High
–
 Relationship forms
Co - Operative systems:


Ø This type of relationship will be preferred by the buyer as it has

the following characteristics.
Ø High level of Operational Linkages and Co Operative norms
Ø An appreciable level of Information exchange and Adaptation by the
seller
Ø Less requirement of legal bonds

Collaborative Systems:


Ø The type of relation has the following characteristics

Ø High levels of Information exchange and Co Operative norms
Ø An appreciable level of Operational linkages
Ø An appreciable level of legal bonds in case of highly complex supply
 Sales Strategy
Ø Push Strategy
Ø Sales Channels
vInside sales force
vOutside sales force
vTeam selling
Ø Telemarketing
Sales people Time
THANK YOU !!!