Biozone Chemicals Twiezel

8/8/2019 Biozone Chemicals Twiezel

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PRE( )Kesher Sumeet 20091019

( )Sudhanshu Goel 20091051

( )Swapan Oreya 20091053

(


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..Need for Biodiesel &Renewable fuels Sustainable

Energy Independence

Foreign Exchange Savings

Rural Developmentv Job Opportunity

v Waste Land Development

Environmental Benefits

v Emission Benefitsv Energy Cycle and Green House Gas Balance

Better Lubricity

Why Biodiesel ???


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Several DecentralizedEnergy Units

,iesel Gensets/mall Scale Home IndustriesTransportation

System

MechanizedAgriculturalSector

rrigation,umps griculturalachinery such as,ractors Power,illers Threshers. ( -tc Self ufficiency forhe Farmer
http://www.animationfactory.com/brain/search.cgi?n=new&area=animations


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Biozone Chemicals

Product: (TWIESEL high yielding extract from Jatropha Curcas).plants

Description: Oil extract which can be used in the ratio of: % %40 60 where 40 of Jatropha extract and 60 of mineral

.diesel

Operations: , .India Nepal and Bangladesh .Requirements of the customers are considered the foremost

Aspiring to be a market leader in the Biodiesel market through

& .R D and technical knowledge - . Well developed upstream feedstock business in India

, ,Extensive field network to manage harvesting storage

.extraction and transportation of Jatropha oil and seeds


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Vision : To be a global leader in renewable energyprovider by delivering high yield biodiesel at par

.with mineral diesel

Mission: Biozone chemicals would achieve itsleadership by differentiating itself by means of

innovative product which would be cost effective and

.reliable thus replacing mineral diesel in long run


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Industry analysis
http://www.emerging-markets.com/biodiesel/swf/World%20Biodiesel%20Production%20and%20Capacity.html


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Demand forecast for biodieselYear Total Projected

Supply of Jatropha(MMT)

Total

BiodieselProduction(MMT)

% of Biodiesel

Supplied byJatropha

% of Biodiesel

supplied byTwiesel(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


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jatropha biodiesel Industry concentration

Year Numbers of Jatropha Biodiesel Companies

2000 5

2003 20

2005 60

2008 100

2009 125

2010 200 (forecast)


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ajor Competitors: , , ,D1Oils Mission Biofuels Sun Biofuels GEM, .Biofuels Jatoil Limited

ore Competencies : &Innovative product due to well developed R D.and also strongly Customer focused

ompetitive Advantage:v High quality a tr op ha e xt ra ct .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 trustv .Customer satisfaction and value addition in our business


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Business Markets

Factors affecting markets

v Favorable geographic regions for plant

cultivation

v Areas with unfeasible and cost

ineffective energy resources

v Rising concern for environment friendly

fuels

v -Demand Supply gap

v Technological advancements


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Business Target Market

India tops the chart in Jatropha Plantation Worldwide

with 1 million Ha

Food production and transport dependent on diesel

engines . %Consumption is expected to rise at an annual 5 6 rate

by 2011 and by %65 until 2021

%Doesn t require engine modification up to 50 blend

Public and Private OMCs

& ,Auto Industry companies M M TATA


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Market Share


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Product Strategy


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Product Description

Twiesel is a high yielding extract from JatrophaCurcas plants which has been genetically modified

with the use of innovative technology to enhance the.efficiency of commercial diesel fuel

The product is odified rebuy . : % + %Existing condition 25 biodiesel 75 mineral

diesel

: % + %Twiesel 50 biodiesel 50 mineral diesel

alue Proposition : The product is a high yieldJatropha extract which will be added to diesel to%about 50 enhancing the efficiency of the diesel

fuel


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Advantages associated with theproduct

Low cost seeds

High oil content

Small development period

Grow on good and despoiled soil

Grow in low and high rainfall areas Does not require any special maintenance

-Can be harvested in non rainy season

Size of the plant makes the collection of seeds convenient

.Multi products are developed using a single jatropha plant The

- , , ,products include bio diesel soap mosquito repellent and organic

.fertilizer


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. .Positioning of Twiesel w r tCompetitors

GEM Biofuels

-Eco CarboneIKF Green Fuel Ltd

Biozone Twiesel

w Emissions to atmosphere- :5 10 Cost saving Technologies- :10 15 High Conversion yields- :15 20 High production capacity- :20 25 Biodiesel per


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Pricing Strategy


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Cost components


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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 oilextraction

.2 48 %, . -> , . /Losses 5 1 05 kg 1kg oil cost@2 36 kg

-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

(companies per ltr excluding excise/ )sales tax

20 %( / ),Profits @12 Rs 2 ltr Transport @

. / & / /0 41 ltr Interest miscl @Rs 1 ltr


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Return On Investment


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Supply Chain Strategy


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Flow chart

ULTIVATION STAGEcome the activities pertaining to the growing of the Jat

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

ISTRIBUTION AND USAGE STAGE , the oil and the seedcake are consumed or f


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Market Place

West

East

South

North

rket Attractiveness

Realization

Low

High

Low High

More number of OMC Growth of plant Flexible regulation

More number of OMC

Inefficient growth of p

ore number of OMCrowth of plant

efficient growth of plantringent regulation

oidable


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Promotion Strategy


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Promotion Plan


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Advertising Informative Advertising

v Features of New Product

v Customer value

v Working of New Product

Educating the Customers Advertising Theme

Advertising Media

Advertising Budget Advertising Effectiveness


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Advertising theme

The next generation SustainableFuel


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Advertising media

Media Class

v - %, - %Print Media 75 Electronic Media 25

Media vehicles

v - ,Print Media Industry specific MagazineEnergy Journals

v - - ,Electronic Media e marketing websitesSustainable energy related sites

Media Option


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Media Option

-Industry specific journals Full Page Colored,Ad Second Page

- ,General journals Half Page Colored Ad

Interior Pages

Scheduling and Timing Decisions

v -High Start of Budget year every edition

v -Moderate Other time Back pages in particularjournals


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Advertising effectiveness

Pre Execution -Post Execution /Concept Theme testFinal draft test

Test is done byBuying decisionmakers across the

Industry

PerformanceEvaluationComparing the sales

.and Profits

Differences in thepast sales and

present sales in

accordance with theadvertising costrolled out of the

firm is calculated

, ,Audience AcceptanceFre uenc


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Advertising budget . %0 2 of Total Sales


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isement Copy


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,Direct mails Trade Fairs

Litmus test for responsiveness

Direct mail database

vFocus on the best prospective customers

v -Cross sell related productsvLaunch new products to existing customers

Boutiques In trade shows

vBrochures and Explanation

v Large customers

Personal Selling


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Personal Selling Buying Situation

v New Task

v -Modified Re Buy Buying Center

Users , -Engineers Consumers Initiate the Buying,Proposal concerned about product

compositionInfluencers -Technical people Evaluation ofalternatives

Buyers -Purchase dept Officers selection between, ,vendors Suppliers Negotiation

Deciders -High level officers buyers essentiallydeciders for complex products

Gate keepers -Technical personnel control the flow ofInformation

Bu ing pr


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Buying process

Selling Effort


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Selling Effort ales force characteristics: Prospecting - trying to find new customers Communicating - with existing and potential customers about the

product range

Selling - ,contact with the customer answering questions and tryingto close the sale

Servicing - providing support and service to the customer in the-period up to delivery and also post sale

nformation gathering - obtaining information about the market tofeedback into the marketing planning process

Allocating - ,in times of product shortage the sales force may havethe power to decide how available stocks are allocated


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Buyer Seller Relationship

&Market Situational Determinants

-Availability of alternatives High

-Supply Market dynamism Low

-Importance of supply High

-Complexity of Supply High

Relationship forms


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Relationship forms -o Operative systems : This type of relationship will be preferred by the buyer as it has

.the following characteristics

High level of Operational Linkages and Co Operative norms

An appreciable level of Information exchange and Adaptation by the

seller

Less requirement of legal bonds

ollaborative Systems: The type of relation has the following characteristics

High levels of Information exchange and Co Operative norms

An appreciable level of Operational linkages

An appreciable level of legal bonds in case of highly complex supply


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Sales Strategy

Push Strategy

Sales Channels

vInside sales force

vOutside sales force

vTeam selling

Telemarketing


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Sales people Time


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Documents

Biozone Chemicals Twiezel