Professional Documents
Culture Documents
A case study will have to be read, understood, analysed and presented on Monday
6.12.2010 by a couple of teams (which team will be decided by me on Monday morning).
Therefore,
all students may please work on this during this week-end and come prepared, The case
study is :
Page 159 & page 160 of the book "Crafting and Executing Strategy" by Arthur A
Thompson, Strickland, John E Gamble and Arun K Jain (prescribed text book)
Some of the questions on this case study would relate to the following:
1) if you are a CEO of a company holding patent for biofuel production from jatropha
plants, what kind of appropriate strategy you will develop? Why?
2) What precautions you need to take for the company to sustain competitive advantage, if
any.
3) what are the factors that would affect your company's prospects?
4) what are the driving forces of competition?
5)How will you assess the potential competitive forces and plan for the future?
6) what competitive advantages you foresee for your company?
I request every one to come for the Monday class well prepared.
With best wishes
Prof P K Jayaram
Page 1 of 13
In India Professor Pushpito Gosh, director of the Central Salt and Marine Chemicals
Research Institute in Bhavnagar Gujarat, has researched the characteristics of all
the domestic non-edible vegetable oils and found Jatropha to be the most
promising. He is now working on the first Jatropha project in the region supported
by the German DEG – German Investment and Development Company. Using
existing conditions and then converted into biodiesel through a pilot plant using a
cold press method. Fuel specialists from Daimlerchrysler AG tested the end
product which met EU standards.
In Tanzania, Ghana, Malawi and Indonesia the German company Energiebau
Solarstromsysteme GmbH has supplied systems for decentralised power and
introduced hybrid systems with solar and Jatropha biodiesel generators.
Page 2 of 13
09-Mar-2008
By Amy Yee in New Delhi
When police bring the traffic to an abrupt halt in Raipur, capital of the
remote Indian state of Chhattisgarh, drivers know what to expect next. Soon,
flashing red lights atop speeding government vehicles come into view. Raman
Singh, Chhattisgarh's chief minister, is passing through.
Unlike biofuels made from crops such as soybeans and maize, jatropha is
inedible, grows on non-arable land and needs little water or care. "It has
good potential, no doubt about it," says Suhas Wani, principal scientist at the
International Crops Research Institute for the Semi-Arid Tropics, near
Hyderabad.
India, which imports more than 70 per cent of its oil and gas, is trying to
launch one of the world's biggest jatropha biofuel projects in order to bolster
energy security. The country's Ministry of Rural Development has proposed
spending $375m (£186m, €245m) over five years to plant 1.2m acres of
jatropha across India and research the crop's viability as a biofuel. If the
experiment is successful, the government would aim for 30m acres of
jatropha plantations and seek to commercialise cultivation.
Page 3 of 13
Such confidence in jatropha, still untested on a large scale, may be unwise in
a country notorious for ambitious plans and poor implementation. Energy,
however, is one of the most pressing issues for India: on the back of annual
economic growth of nearly 9 per cent, energy consumption is expected to
double between 2005 and 2030, according to the International Energy
Agency. India paid up to $60bn to import crude oil last year.
Other countries such as South Africa, Ghana, Brazil and Madagascar have
jatropha projects. But commercialisation is still unproven and questions
remain about large-scale cultivation and distribution. The potential of
jatropha and similar plants is alluring, however. As well as growing on
wasteland and requiring little cultivation, it is renewable and is produced
locally. It is also far less polluting than fossil fuels, creates jobs in poor and
remote areas and can be used by India's enormous rural population to run
farm machinery and even generate electricity.
"It's far easier to grow jatropha than drill for oil," says Akshat Rathee of
Earth 100 Biofuels, a New Delhi-based consultancy.
With $100,000 of funding from the British High Commission and the Indian
government, Winrock supplied four generators powered on jatropha oil,
along with machines to crush seeds and filter the raw oil. Some 25,000
jatropha saplings were planted on roadsides.
Today all 110 homes in Ranidhera have electricity for four hours each
evening. Speaking from her low-roofed home, Pholbati Bai says her four
children can now study at night. Villagers pay about $1 a month for two
lights - comparable with the cost of a month's supply of kerosene.
The project in Chhattisgarh has been far more ambitious. The state and
Page 4 of 13
central government set aside an annual budget of about $20m to employ
rural dwellers to plant jatropha on government-owned land, alongside rail
lines and on bunds, the strips of land that separate farmers' fields. Mr
Shukla persuaded the state to build a $85,000 plant to produce 1,000 litres of
biodiesel a day.
With its large number of poor, India is reluctant to use food crops for fuel.
Oil from inedible plants is less controversial than soybeans, maize or palm
biofuel crops as it does not divert arable land - a trend that has contributed
to a jump in global food prices. "In India, we can't afford to even think of
using those," says Mr Shukla of biofuel made from food. "If you're growing
soya for biodiesel, you're wasting your time, money and land."
He points out that jatropha produces three times more oil per hectare than
soybeans. Shrubs mature within a few years, produce seeds for about five
decades and require little more than pruning. About 4kg of jatropha nuts
yield a litre of oil.
To dispel doubts, Mr Shukla offered to fill the chief minister's car with the
yellow liquid. He says Mr Singh, the chief minister, told him: "You can pour
it into my car, but if anything goes wrong I'll hang you."
Three years later, Mr Singh insists on running his car only on the home-
made biofuel.
FT.com
Copyright The Financial Times Ltd. All rights reserved.
Page 5 of 13
No, Jatropha is not an illustrious King, nor is it
a war hero.Jatropha, is a weed. It grows on
almost barren land and requires very little
water and hardly any fertilizers. For many
years, Jatropha was a pain for the farmers, an
unwanted wild plant that would grow
alongside their precious crops. Its awful smell
and taste repel grazing animals, but alas,
littlejatropha’s secret was finally out. Its seeds
could be crushed to produce biodiesel!
In the seeds of that wild plant, lay the answer
to a momentous question of a periled generation of humans. This is the magic of renewable
sources of energy.
Originally grown in Central America, the Jatropha plant is believed to have reached
foreign shores across the world courtesy Portuguese explorers. Its potential to meet fuel
needs, especially in developing countries is very high. It is advantages are many. The very
nature of the plant is such, that it can be produced on infertile land, as a result of which,
fertile land as an important and limited resource needn’t be compromised on. While other
bio-diesel alternatives like palm oil, corn and sugarcane require productive land, additional
irrigational facilities and expensive fertilizers, thus impinging on fertile agricultural
land, jatropha can grow on waste land. It can survive on minimum irrigation while
nutrient-rich seed cakes, left after the seeds are crushed, serve as a fertilizer. It can even
grow alongside food crops without hampering their growth; in fact it can serve as a
repellant to keep the animals away due to its smell.
A country’s foremost worry is its food security, especially with regard to the third world.
Since this plant does not encroach on agricultural land, food crops do not suffer indicating
a better utilization of land resource. Environmentalists hail this new discovery since the
plant prevents soil erosion and does not even demand felling of forestlands, at the same
time provides an effective solution to fuel crisis hovering over our heads.
Underemployment and poverty, the two major problems faced by developing nations find
an answer in the seeds of the jatropha plant. Like tea, jatropha too is labour intensive. Its
production, distribution and various other stages of cultivation, require the setting up of
estates, at least if it is to be made commercially viable. If a bottom-up effort is worked at, it
can tackle the problem of poverty by making it an agricultural practice by the farmers. In
Mali, Africa, one of the poorest nations on earth, a number of small-scale projects aimed at
solving local problems — the lack of electricity and rural poverty — are blossoming across
the country through use of the existing supply of jatropha to fuel specially modified
generators in villages far off the electrical grid. Thus, this tiny seed can empower a tiny
Page 6 of 13
village in some remote part of India to produce their own electricity or even run their
tractors. The blessed plant can even be grown in the harsh terrain of Rajasthan.
With a little clairvoyance, we all can predict that in the near future, ‘fuel’ will be the
buzzword. With a limited supply of fossil fuel, it is essential that nations are ‘independent’
in their energy production. In the long run, by producing large yields of jatropha, countries
could cut down on their fuel imports, and maybe gradually start exporting bio-fuel.
Most experiments with the use and growth of this plant have proven to be successful. A
company based in Singapore has announced plans to plant two million hectares, about 4.9
million acres of jatropha in the Philippines. In September this year, a vehicle fuelled with
oil from the jatropha plant traveled from Atambua in West Timor to the Indonesian
capital, Jakarta, a 3200 km trip. Jakarta plans to make at least five million hectares (12
million acres) of former forestland available for palm oil, jatropha, sugarcane and cassava
plantations in a bid to create jobs for up to three million people. The government hopes
that biofuels will look after almost 10 per cent of Indonesia’s transport and electricity fuel
needs by 2010.
However, it seems that the jatropha carcus has no takers in India. The big shot
corporations display a lack of foresightedness by ignoring the demands and need for
effective investment in renewable and environment friendly sources of energy like the
jetropha. It would not be incorrect to say that most, hold huge stakes, rather have their
hands dipped in ‘oil’ at the moment.
Even if jatropha proves a success in Mali, it is still not without risks. If farmers decide that
the cultivation of these plants is more rewarding and viable than food crops, it
could have an adverse impact on the country’s food production. In light of such
undesirable effects of biofuel, the UN report states that, “the benefits to farmers are not
assured, and may come with increased costs.”
One thing is for sure, in a world where the control over limited energy source might be the
raison d’être for the third world war, the jetropha seed, could well be hailed as a messiah
of peace.
Natasha Puri
KEY STRATEGIES to SUCCESSFUL JATROPHA INVESTMENTS
As Jatropha and other non-food oil crops are poised on the cusp of
commercialization, Jatropha investors have stepped up their efforts
to develop a viable source of Biodiesel, and some are already well on
the road to success. However, with so many new projects coming up,
and a lack of understanding of the Jatropha Curcas Plant and reliable
information; lack of QPM inputs; lack of Best Agricultural Practices
and expertise & poor management techniques ; many projects are
only achieving mediocre results. Therefore, while Jatropha holds a
great deal of potential as a biodiesel feedstock, it is also important to
Page 7 of 13
acknowledge many hurdles must be overcome before the crop can
become economically viable in most parts of the world. The key
strategies planning, methods and technologies are very essential for
Successful Implementation & execution of a large scale Jatropha
Project with Maximum ROI through Improved Agronomy
» Read More
Biodiesel Business Academy©
Page 8 of 13
CJP has the privilege to provide most
authoritative Knowledge platform known for Development of
Sustainable Non-Food Jatropha Oil Crop Projects, Programmes and
Priorities to Feed Biodiesel Industry Worldwide and has established
the Biodiesel Business Academy© (BBA) to provide quality, impartial,
informative and enjoyable advanced level training with enhanced
technology in the field of Biodiesel production. The BBA delivers
Training to international and national participants/professionals of
green energy industry to increase and distribute knowledge and
skills. Whether you are new to the industry, have recently changed
jobs or simply wish to refresh your knowledge, our training should
become a key part of your personal or company professional
development programme …
JP has developed Jatropha Agricultural Training package to deliver
Competencies through Qualified trainers with a practical 'hands on'
approach and has created successful training division which deliver
Training to international and national participants by integrating
technical and managerial issues. CJP is very proud to announce that
2nd Global Jatropha Hi-Tech Agricultural Training Programme (JWTP)
in India at Jaipur, Rajasthan from July-14-18, 2008 was a grand
success. The word “Excellent”, which was used by many trainees to
describe their experiences, sums up the JatrophaWorld Training
Jaipur, 2008 experience.
Page 9 of 13
Malaysia, Mexico,. New Zealand, Nigeria, Singapore, Slovenia,
Senegal, South Africa, Spain, Sri lanka, Tunisia, Turkey, UK, USA,
Vietnam and Zambia. Our June'2007 training Programme has been a
grand success attended by participants from 18 countries Viz: USA,
UK, SPAIN, AUSTRALIA, COSTA RICA, NIGERIA, MALAYSIA,
INDONESIA, SIGAPORE, BANGLADESH, SRILANKA, LAO PDR,
PORTUGAL, INDIA, Ethiopia, HUNDRAS, THAILAND KENYA etc.
» Read More
Full Range of Biodiesel Business Consulting Solutions
Page 10 of 13
crushing, coproduct markets, feedstock acquisition and contracting,
technology analysis, risk analysis specific to biodiesel technology,
feedstock, markets, and general project risks, market and financial
analysis. CJP can offer the type of consulting that only numerous
years of leadership in the small to mid-size biodiesel market can
provide at an affordable price…..
Read more and important
After having gone through the site you shall be able to know the basic
Requirements for an effective energy plantation project. Any failure
to meet out above, may lead to a disaster Yes, there is one more
reason why there may be a disaster in the waiting. Now that you own
the asset, you don't know what to do with it because you did not have
a plan about the asset...a perfect business plan is absolute
Because
Page 11 of 13
plantation Advisor to provide long-term advisory services on
development strategy and project implementation.
We will ensure that our operations are consistent with our values
EntrepreneurialInnovativeEffectiveResponsiveResponsibleSustainable
We place integrity, trust and respect at the core of all we do.
ENERGY
India's Big Plans for Biodiesel
Researchers are developing new methods for cultivating a plant called
jatropha.
• WEDNESDAY, DECEMBER 27, 2006
• BY MICHAEL FITZGERALD
Page 12 of 13
Management of Bioresources division. "It proves that we can do this," he
says. He and other researchers at TERI spent five years testing different
mycorrhiza microorganisms, symbiotic fungi that improve the ability of
many plants to grow in poor soil. Adholeya's team found that the most
effective was a fungus in the glomus species (he is not currently disclosing
the exact fungus), which improves jatropha yields by 15 percent.
The TERI project is working in rural Andra Pradesh, a state in
southeast India, collaborating with local financial institutions to develop
loan guarantees to fund seed purchases; it's also collaborating with
insurers to back the farmers against potential losses. In addition, it had to
educate the farmers on how to cultivate the plant.
So far, the project has signed up 5,000 farmers representing 1,000 hectares
of land. The goal is to have 8,000 hectares under cultivation by March 2008,
and Adholeya says that the success of the first crops has drawn interest
from many more farmers. By the end of 2008, TERI plans to have a
production facility producing biodiesel from jatropha. Eventually, it aims to
produce 90 million liters of biodiesel annually.
Page 13 of 13