India imports 85% of its fuel from abroad each year. Domestic fuel production meets only a small portion of total demand, which is projected to more than double by 2019-20. Pongamia pinnata biodiesel is a proposed solution, as it can be grown in poor soils with little rainfall and processed into biodiesel that reduces pollution compared to diesel. The company plans to establish plantations and processing plants over three years to produce and sell biodiesel commercially in India and beyond.
5. The production processes 1. Pongamia Pinnata plantations and growth 2. Seed procurement from farmers. 3. Expelling seeds for pongamia oil production 4. Transesterification of pongamia oil for production of pongamia pinnata methyl ester 5. Market commercial supply
6. STRUCTURE OF EXPELLING PLANT Extensive work on the tissue culture (biotechnology )to produce the best oil yielding Seeds.
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8. PRICING OF BIO DIESEL (incurred per liter) Cost (Rs) Assumptions / Remarks Cost of Seed (Rs/Kg Oil) 16.40 Seed Rs 5/Kg, Oil yield 53%, Cost of Collection & Oil Extraction 2.50 Losses 5%, 1.05 Kg -> 1 Kg oil, Trans-esterification Cost includes cost of lipases and methanol being used *** 8.32Description For 10-15T/day Cost of Bio-diesel per Kg 27.2 - Less Byproduct (oil cake) -2.23 2.23 Kg cake @ Rs 1/Kg Less Byproduct (Glycerol) -3.80 0.095 Kg @ Rs 40/Kg Net Cost of Biodiesel per Kg 21.17 As per ABOVE ESTIMATES Net Cost of Bio-diesel per ltr 17.99 Specific Gravity of oil = 0.85 Sale price of Bio Diesel per ltr 25.00 Profits + transport & Interest/miscl. @ Rs 1/litre
9. PONGAMIA PINNATA V/S DIESEL PROPERTY PONGAMIA DIESEL NORMS Density g/ml(30ºC) 0.88 0.85 >0.8 Combustion Point (ºC) 192 55 >55 Kinetic Viscosity Constant cST (30°) 4.8 2 to 8 ~5 Calorific Potential (MJ/Kg) 41 45 Not defined Cetane Number 52 47.5 >48 Ester Content (%) >99 0 >99 Sulphur Content (%) 0 <0.5 <0.55 Carbon Residue (%) 0.024 <0.35 <0.1
12. WHERE WE SCORE OVER OTHERS Mr Jitendra panwar (bio. Associate professor) BITS pilani has worked extensively on Tissue culture of Pongamia Pinnata plant. With his work using biotechnology better quality seeds are being produced yielding a higher pongamia oil yield per kg. Aseem and Prashant have done extensive work under prof. BV Babu(Head chemical Engineering department, BITS pilani )on transesterification of pongamia oil to produce biodiesel using Lipase 3A (1,3-specific lipase) catalyst. The methyl ester (biodiesel) using lipase 3A catalyst has been found to give higher ester yield (72.2%). Moreover, since it was found to have almost the same viscosity, brake power, SCF, it was found to be compatible with any engine(run on diesel).Tests on sterling two stroke engine(Horizontal 2 cycle,7hp/2400 rpm of pre-combustion type) revealed satisfactory results when run on the biodiesel
20. CASH FLOW CASH FLOW Year>>> 2008 2009 2010 Beginning Cash Position - 11,098,600 44,234,359 >>>>>VC + Personal Investments 30000000 0 0 Revenues 15500000 60970000 60970000 Cash IN 45,500,000 60,970,000 60,970,000 Costs 24198400 23877741 27646506.5 Fixed asset purchases 10203000 3956500 10155000 Cash OUT 34,401,400 27,834,241 37,801,507 Subtotal 11098600 33135759 23168493.5 >>>>>>>>Return to VC 0 0 50000000 Cash flow per year 11,098,600 33,135,759 26,831,507- Ending cash position 11,098,600 44,234,359 17,402,853
21. RATIO ANALSYIS RATIO ANALYSIS 2008 2009 2010 Formula Solvency ratio -44% 67% 94% Equity / total assets Gross margin -14% 2017% 1932% (Sales - Cost of Sales) / Cost of Sales Return on Assets -44% 67% 94% Profit current year / ((total assets(Y0)+ assets(Y-1))/2) Cost / Income ratio 156% 39% 45% Total costs / total income Growth of Sales - 293% 0% (Sales Y1 - Sales Y)/ Sales Y Growth of number of direct jobs - 73% 6% (number of staff Y1 / number of staff Y)-1