Business Development Plan-Bio Gas

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

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

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

Leave Schedule........................................................................................................................................ 23
Succession Planning ................................................................................................................................ 23
Training ................................................................................................................................................... 23
Financial plan .............................................................................................................................................. 23
5.09 ............................................................................................................................................................. 24
Generic Value Chain for Biogas ................................................................................................................... 26
Risk Assessment .......................................................................................................................................... 26
Level of Risks ........................................................................................................................................... 26
Product and Execution Risk..................................................................................................................... 27
Financial and control Risk ....................................................................................................................... 27
Conclusion ................................................................................................................................................... 27

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, 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 product offerings of the company include Biogas for
households, Electricity for industry and Biogas for transportation. The company is also aimed at
providing consultancy services regarding the integrated energy solutions by pursuing the strategy
of continued Research and Development.
The company was formed in 2015 and currently has 5 member The company’s name truly reflects
the nature of the business, 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
Human Resource Management, Finance and Management Information System.
The main reasons for the initiative taken by the company are to capitalize on the opportunity of
providing alternative energy sources to the consumers, 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. 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, while at the same time to further our efforts for making environment friendly
products and having a very beneficial output from the waste. So, 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 initial capital required for the establishment and operations of the company are INR 31 million.
In the first full year of operation, the company has estimated to reach INR 75 million of sales. The
analyses project that the sales will grow to 35% a year within the next 3 years, with the gross profit
margin of 45%. The payback period of the project is four years
The company’s values include quality, trust, respect for teammates and betterment of environment.
The company intends to become a pioneer, for producing biogas on the commercial level in India,
by introducing and expanding its diversified products and geographical coverage with the passage
of time.
The “Sustainable Energy” company organization is based on modern management structure

comprises on two committees EXCOM and MANCOM.
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 company is applying the HR practices for the betterments of its employees.
The target market for “Sustainable Energy” Company is considered to be the villages closer to the
company’s production plant at the initial level. In addition to this the company’s major customers
include factories located near the production site. Currently, the company is not expected to face

any kind of direct competition for biogas production, at least at the commercial level. For the future,
the company believes that it would be able to compete effectively because of its high quality
products, dedicated workforce, effective planning and continued R&D. To increase the public
awareness about the venture, the company has decided to use word of mouth, education
sponsorship programs and radio advertising as the prime sources.
The company, at the initial level, plans to use 6,500 cubic meters of animal manure and 4,200 cubic
meters water as the input. After producing the required amount of biogas from this input the
remainder or bio slurry can be used as the fertilizer, making this process even more beneficial and
profitable because this can be sold at the reasonable cost, which then can be utilized for covering
the input cost of “Sustainable Energy” Company.
For the efficiency and timeliness of its operations while at the same time for ensuring the
appropriate control over the production process, the company is aimed at using Information
Technology as a competitive edge. In this regard, it has decided to use customized software to
control the whole production process in the highly effective and efficient manner with the great
accuracy.
In addition to this, 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, especially by R&D personnel, 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 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.
The physical plant of the company for the biogas production is installed at the Khand-2 Sewage
Canal, Bypass Road, Faridabad. The total area covered by this plant installation is 8 acres and is
acquired at the lease of per acre per annum. The machinery and equipment required for the process
include Digesters, Gas chamber, 15 Turbines, Pressure Control System, Cylindrical Purification
System, Bacteria Checking Machines, Container Trucks, Process Control System. 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 company receives the input for the biogas production process from 8 Dairy Farms, and 3000
small farmers, Vegetable Market, Dead Animals, Sewage Lines.
The company has an initial risk of financing and product execution while other risks are not much
concern to the greater extent. The company is doing business in a suitable environment where the
chances of success are very high.

Company profile
“Sustainable Energy” Company, will be located in Faridabad, 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. 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.
Name of product: GREEN AND CLEAN ENERGY
Name of company: “SUSTAINABLE ENERGY” COMPANY
Address of company: KHAND-2, BYPASS ROAD, SEWAGE CANAL FARIDABAD
Products and Services
The products and services that will be offered are categorized according to different segments of
consumptions consisting of;
• Industry,
• Household
• Transportation
The offerings in this regard will include biogas for household use as well provide to industry at
initial stage, bio fuel for the vehicles named as Bio CNG cylinders, bio energy for electricity
generation and the consultancy services for house hold energy solutions.
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, which is also
depicted by the name of the company.
Office Equipment and Personnel

The company has more than 30 employees working in three shifts; whole process of production is
carried through the support of technology.

The Entrepreneurs
The company’s name truly reflects the nature of the business, 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, Human Resource Management, Finance and Management
Information System.
Website: www. “Sustainable-Energy”.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 strive to provide power in a way that is sustainable in
the long term. We believe it is essential not only to make profits but also to care about people and
protect the environment. We will lead by example through a commitment that empowers our
customers ensuring the excellence at all levels of our operations, performance, products and
services. Simultaneously, 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. However, sufficient number of industries can’t be
set up especially in rural areas so far due to scarcity of energy supply.
Security and affordability of energy supplies are key inputs to ensure sustainable development.
Equitable access to energy constitutes a basic element of effort to combat poverty and sustained
economic activity. 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.
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.
This situation is worsened by the low level efficiency of these fuels, which are a health hazard due
to increased air population, particularly to rural women who are the managers, producers and
users of energy at the household level.

Situation analysis of “Sustainable Energy” Company
Environmental analysis
Political
Presently, the political scenario of India is quite favorable for using renewable energy resource in
order to eliminate the severe energy crisis in India. One of the major problems facing the
new government, the energy crisis, is intense, costly and multidimensional. 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. Even before it took office, for the new government
was greeted with two jumps in fuel prices, accounting for the 15% in two weeks. Meanwhile crude
oil prices have been registering all-time-highs, shooting 40% in the past year. The endless reality is
that this global spike will somehow have to be accommodated in the energy prices in India.
In this crucial situation, the government now understands that, in order to tackle the existing
energy crisis and ensure a prosperous energy future, the backbone of the future energy
policies would have to be reliance on domestic resources (Biogas, Hydropower, Solar and Wind
energy) as well as the energy conservation. In this regard, 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.
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.
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. Moreover, speculators all around the
world expect oil prices to touch $110 per barrel in the medium term. With concerns over many
issues oil prices don’t see any other way but to shoot upwards. The macro –economic implications
of supply shock induced energy crisis are large, because energy is the resource used to exploit all
other resources. India’s Medium Term Development Framework (MTDF) 2005-2010 sets out a
challenging program to achieve 8% annual growth in GDP. Associated growth in energy

consumption is forecasted at 12% a year and this expected growth would have drastic
pressure on all sectors of India’s primary energy supplies.
India has a deficit of fossils or hydrocarbon sources of energy to cover up the deficit; it depends
upon importing crude oil at an enormous cost from its meager forex reserves. The need of crude oil
is on an increase because of an improved lifestyle, 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. In addition to this, being an energy importer, the shooting up dollar
value is also posing a huge threat to the economy. In view of India’s meager resources of fossil fuels,
the dependence on imported petroleum is expected to increase, therefore putting the economy
under great strain. In this way, an alternate source like nuclear, solar, wind and biomass energy
would have to be explored. But it should be kept in close consideration of the environment
degradation problems and processes, which are environment friendly, should be adopted.
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. Biogas energy has potential to save
the metabolic energy and the time of women, which could be used for other productive activities
that enable women to be socially, psychologically and politically empowered. Their livelihoods are
threatened due to their heavy workloads and deteriorating health conditions in the absence of good
nutrition and health services.
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 and community development activities for
their self-enhancement and empowerment.
Often the beliefs, prejudices, habits, etc, prevailing in the society pose problems for promotion of
the biogas technology .Factors such as educational background and income of the beneficiaries
may also affect the speed of BT adoption.
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.
Technological
Indian Council of Renewable Energy Technologies has been recently established by merging
National Institute of Silicon Technology and Indian Council for Appropriate Technologies. 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.

The technology change rates, with respect to biogas plants, 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. In addition to this, leaflets,
calendars, posters and manuals written in the local language can be effectively utilized for creating
the awareness regarding the benefits and uses of biogas.
India being agriculture based, breeds sufficient live stock to produce enough animal waste for the
production of biogas. Currently, all such animal waste is burned in the dry form as the domestic
source of energy. The same can be used for producing biogas on commercial bases with effective
utilization of technology. There is quite a potential for using biogas technology as rural energy
though out the country by network of community biogas plants.
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. Three critical
characteristics must be considered in analyzing India’s energy sector.
 A complex range of energy resources is available and each plays a different role in meeting
the national needs.
 The gap between domestic energy supply and demand is widening because of inadequate
production, poor transmission and distribution system and inefficient energy use.
 Exploiting the energy resources creates the environmental hazards that threaten the long-
term development prospects and social welfare.
Gaseous fuels like Natural gas; Biogas has been explored as an alternative to petrol and diesel to
lighten the import burden. Natural gas in compressed form is already being used successfully as
vehicle fuel. 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.
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. 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.
The current situation in India is that it is producing 64,000 bbl/d and has ambitious plans to
increase its current output to reach 100,000 bbl/d in 2010. According to Oil and Gas Journal, India

had 28.8 million barrels of proven conventional oil reserves as of 1 Jan 2005. Consumption of
petroleum products is estimated at 351.4 thousands bbl/d. Today, the primary energy supplies are
not enough to meet even the present demand. So, India, like other developing countries of the
region, 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. Sector wise consumption of the Natural gas is given as below:
Sector Natural gas consumption
Power Sector 35.4%
Fertilizer 23.4%
Industrial 18.9%
Household 17.6%
Commercial 2.8%
Cement 2.5%
Competition
On the commercial level production of biogas in the country there is no competition at all in the
market. There are some of the biogas production projects already running but they all are on the
very small-scale level. So, “Sustainable Energy” Company would not face any kind of direct
competition in the commercial sector. The indirect competition in the energy sector is being
fostered by the other alternative renewable energy resources including natural gas, firewood, wind
energy, solar energy, and coal and petroleum products. But due to its cost-effective and
environment friendly nature, biogas plant at the commercial level is going to have a firm standing in
the presence of this indirect competition.
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

Environment
The Govt. 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. Unchecked use
of hazardous chemicals, vehicle emissions and industrial activity has contributed to a number of
environmental and a health hazard; chief among them is water pollution. 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.
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. An important advantage of the biogas programme is that it results in considerable
reduction in fuel wood demand especially in the rural areas. The substitution of fuel wood by biogas
leads to three main benefits:
 Firstly, it slows down the deforestation trend, thus achieving numerous environmental
benefits
 Secondly, it generates less air pollution by the combustion of biogas instead of wood or
animal dung
 Finally, we get natural fertilizer (manure) from biogas sludge, which is why biogas offers a
safe and clean source of alternate energy
Availability of Biomass
Availability of Biomass in India in 350,000 tons garbage collected in the major cities, millions of
gallons of wastewater, 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.
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

 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

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

Service differentiation
Services provided by our specialist consultants are added benefit of buying product from the
distributors…!
Image differentiation
Brand’s innovative name, logo and symbol are its differentiation features.
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. Our per unit price will be 8.05. Our whole promotion is
based upon our price strategy. We have decided to compete by our low price. It will increase our
production and sale and ultimately increase our revenues.
For Biogas Cylinders and Electricity we have competitive prices. For these two products we have
“cost plus profit margin” model. We will add 25% profit margin in cost of these two products. We
will offer Biogas based CNG at 25% less price in relation to LPG prices prevailing in the market.
Placement
Placement is important factor; we will use vehicles to deliver the Biogas in Cylinders form to the
end consumer. It includes all the company’s activities which make the product available to the
market. We will provide Biogas Electricity to dairy farms from our production plant. We will
provide Biogas to nearly located industries through the pipeline.

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. 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. During this process, organic substances are
decomposed by microorganisms. The substances added to the system produce the biogas in an
oxygen-free environment. In the first step, the organic substances are divided into molecular
components (sugar, amino acids, glycerin and fatty acids). Microorganisms convert these
intermediate products into hydrogen and carbon dioxide, which are then transformed into methane
and water according to the

Equation: CO2 + 4H2 ----> CH4 + 2H2O
General factors which influence biogas production:
The production of biogas is a natural process that functions in suited facilities.
The following factors must be considered during biogas production:
• Organic substrates must be able to be biologically decomposed by microorganisms.
• 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 pH-value should range from 6 to 8 the fermentation must take place in an area sealed
off from air and light.
• The fermentation tank must be mixed at regular intervals.

Management plan
Form of Business
The form of business is private limited and established under Companies Act. 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. All
the members have equal shares in the company and are responsible for their respective activities as
they are performing actively in the organization. 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.
Board of Directors
The members are also the members of the board of director. 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

Roles and Responsibilities of the Members
The responsibilities of directors may include:-
• Review of operating and capital budget.
• Development of network for the efficient working of the organization.
• Resolving conflicts among all the managerial and departmental activities.
• Ensuring that the assets are in proper and efficient use of their own.
• Major task is decision making.
DESIGNATION (CHAIRMAN)
KEY RESPONSIBITIES:
Smooth functioning of whole organizational departments, to overlook complete activities of the

organization, build long term and short term strategies and policies.
Salary: INR 70,000/-
DESIGNATION (HEAD OF MARKET & CONSULTANCY)

KEY RESPONSIBITIES:
To handle sales, forecast sales, promotions and handle the service area of company which is
consultancy for other biogas plants.
Salary INR 30, 500/-
DESIGNATION (HEAD OF R & D)

KEY RESPONSIBITIES:
To understand the complexities of the biogas plant, find new better and efficient ways to produce
gas and electricity, new and better plant designs for the further extension of the plant, to find better
resources or raw material for quick and more production of biogas, give advices for new product
introduction according to the better research and results.

DESIGNATION (HEAD OF TECHNICAL FACILITY)

KEY RESPONSIBITIES:
To see the technicalities of the biogas plant, provide the engineers and technical staff the required
type of material and help, technical changes in the biogas plant, interval inspection of the plant.
DESIGNATION (HEAD OF PRDUCTION AND OPERATIONS)

KEY RESPONSIBITIES:
Provide production facilities, over-look the purchases and the raw material conditions; see the
difficulties of distribution channels and the better resource for raw material, handle the activities of
subordinates, provide them effective advices about the production and operation of the complete
plant.
DESIGNATION (HEAD OF FINANCE AND CONTROL)

KEY RESPONSIBITIES:
Look at the financial position, activities and resources of the company, handle the books of accounts
of the company, perform internal audit and annual external audit of the company, look at resources
from finance is available, give advices according to the financial position to the chairman and the for
further strategies of development or product diversification.
Salary INR 30,000/-
DESIGNATION (HEAD OF HR MGT.)

KEY RESPONSIBITIES:
Handle the organizations human resource activities like recruiting, selection, orientation,
performance appraisals, motivation, rewards and benefits to the employees, governmental
obligations and regulations about the bio hazard and employees, employee safety and health issues.
Check the balance of the employees in the organization for excessive and under employed worker
Salary INR 20,000/-

Key responsibilities of team of R&D

In research and development, technicians usually work in laboratories testing mechanical,
electrical, chemical, pneumatic, hydraulic, thermal, or optical scientific principles. Typical
employers include institutions, private industry, government, and the military. Working under the
direction of an engineer, physicist, and chemist, or metallurgist, technicians use specialized
equipment and materials to perform laboratory experiments. They help record data and analyze it
using computers. They may also be responsible for periodic maintenance and repair of equipment.
REWARD STRUCTURE
There will be Extrinsic and Intrinsic rewards.
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
8.30am to 4.30pm for labor workers Shift 1
4.30pm to 12.30am for labor workers Shift 2
12.30am to 8.30a.m for labor workers Shift 3
Lunch Hours
1.30pm to 2.30pm for all workers

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 0.8 MW/day 0.8 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 0.8 MW/day 0.8 MW/day
2. 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. Bio CNG
cylinders
Projected 0 2000 2200
Sales(Cylinders)
Ending 0 60 50
inventory

Available for 0 2060 2250

Sale
Less: Beginning Inventory 0 50 60
Production Required 0 2010 2190
Pro Forma Income Statement, Three Year Summary(in millions )
percent Year1 Year2 Year 3

sales 100 79.53 156.63 345.34
Less: Cost of goods sold 56.26 44.74 88.81 194.27
Gross Profit 43.74 34.79 68.51 151.07

Less: Operating Expenses
4.05 7.98 17.59
Salaries & Wages 5.09

Office Supplies 0.19 0.15 0.30 0.65
Insurance 1.51 1.20 2.36 5.21
Depreciation 1.51 1.49 2.36 5.21
Fuel expenses 3.98 3.16 6.23 13.73

Licensees 0.13 0.10 0.00 0.00
Other 1.51 1.20 2.36 5.21
Total operating expenses 13.91 11.53 21.79 48.04
Profit before tax 29.83 23.44 46.73 103.03
Tax at 35% 10.39 8.20 16.35 36.06
Profit after tax 19.39 15.23 30.37 66.97

Generic Value Chain for Biogas
Risk Assessment
Level of Risks
“Sustainable Energy” Company faces only execution and startup risks; 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. There is no market and product branding related risk for the

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.
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. The
gas estimation and generation is important in this whole process of energy generation. The
some initial level changes have to make for efficient production. There is no direct competition
and risk is attached with the company technology.
Financial and control Risk

Company faces the risk of capital arrangement in the start of business. The owners of the company
committed to the Islamic mode of financing so there is lesser chance to obtain debt financing.
The management of the company is inexperienced and some control risks are exists. The company
is selling to dairy farms so, 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. Biogas
produced in large size biogas plants should be enriched before bottling for storage and mobile
purpose, as enriched biogas has more calorific value and better fuel quality. Out of several methods
of biogas enrichment, water scrubbing is found to be a simple, low-cost and suitable method for
enrichment of biogas in rural areas.
Overall, 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. 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.

Business Development Plan-Bio Gas

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Business Development Plan-Bio Gas

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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

Under Guidance of Dr. Venkatesan Murugesan

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

S.No Student Name Sectional Roll # Roll #

5 Anjul Mohan Gupta 04 B 45

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

EPGDIB (2016-18) | Section-B Page 2 of 27

EPGDIB (2016-18) | Section-B Page 3 of 27

EPGDIB (2016-18) | Section-B Page 4 of 27

The “Sustainable Energy” company organization is based on modern management structure

EPGDIB (2016-18) | Section-B Page 5 of 27

EPGDIB (2016-18) | Section-B Page 6 of 27

Name of product: GREEN AND CLEAN ENERGY

Name of company: “SUSTAINABLE ENERGY” COMPANY

Address of company: KHAND-2, BYPASS ROAD, SEWAGE CANAL FARIDABAD

Products and Services

Size and form of Business

Office Equipment and Personnel

EPGDIB (2016-18) | Section-B Page 7 of 27

Website: www. “Sustainable-Energy”.com

EPGDIB (2016-18) | Section-B Page 8 of 27

Situation analysis of “Sustainable Energy” Company

EPGDIB (2016-18) | Section-B Page 9 of 27

EPGDIB (2016-18) | Section-B Page 10 of 27

Energy Supply & Demand

EPGDIB (2016-18) | Section-B Page 11 of 27

Sector Natural gas consumption

Power Sector 35.4%

EPGDIB (2016-18) | Section-B Page 12 of 27

EPGDIB (2016-18) | Section-B Page 13 of 27

 No harmful material waste

Segmentation & Targeting

World region South Asia

Cities All major cities of Punjab & Haryana

Density Urban and rural

EPGDIB (2016-18) | Section-B Page 14 of 27

Age Applicable in every age group

Gender Male, female

Family size 1-2,3-4,5 plus

Family life cycle Married, Unmarried

Income INR 5000 plus p.m.

Occupation From lower to upper class

Social class Lower class to upper class.

Lifestyle Actualizes, fulfilled, believers, achievers, strivers,

Experience’s makers and strugglers

User status First time user

Loyalty status Optimistic

EPGDIB (2016-18) | Section-B Page 15 of 27

Core Benefits Cheap energy

Basic product Bio gas

Potential Product Different sizes of cylinders will be available in future

EPGDIB (2016-18) | Section-B Page 16 of 27

• Public Relations (Words of Mouth)

• 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

EPGDIB (2016-18) | Section-B Page 17 of 27

Equation: CO2 + 4H2 ----> CH4 + 2H2O