Business Plan

Sparsh Bio-Innovations LLP Wealth From Waste

Our Team:
Abhinaw A abhinawa@siib.ac.in -- +91-- 8698955122 Bandish Patel bandish.patel@siib.ac.in -- +91-- 9028482089 Nishesh Pandit nishesh.pandit@siib.ac.in -- +91 9403027660 Sankar Arya sankara@siib.ac.in -- +91 8698537942

MBA Energy & Environment (2011-13)

05/02/2012

Symbiosis Institute of International Business, Hinjewadi Phase-1, Pune, Maharastra, India 12/10/2011

Executive Summary Business Proposition Sparsh Bio Innovations is a limited liability partnership firm which focuses primarily on the development and production of biogas based cooking gas cylinders from waste that is collected from the farmers co-operatives i.e. agro waste, waste from IT industry, Hotels, neighboring places and other waste generating places like marriage functions- food waste and most importantly waste from municipal corporations- Municipal Solid Waste (MSW). There have been five basic motivating factors behind the development of Sparsh from the conceptual phase to a real business entity that provides solutions to the most pressing issues of the day. 1. Alarming increase in the cost of LPG as a cooking fuel. 2. Waste management and waste handling issues. 3. Clean fuel and green environment which follows CDM. 4. Energy poverty prevalent among the rural as well as the urban poor. 5. The issue of energy security of the country. We are committed to achieve our goals as an organization and make a positive difference in the lives around us. The Company Structure: There are six pillars of strength or business units that help Sparsh grow and evolve as an organization. They are: Administration & Business Strategy; Finance & Accounts; Operations & Maintenance; Marketing& Sales; Technology and R&D; and Human Resource Management. Our company has introduced the concept of skip level structure and The SPFS or The Sparsh Point Factor System which was designed keeping our needs as a growing, evolving and green organization in mind. 4Ps: 1. Product: Compressed Biogas cylinder for cooking purpose. Brand- Sparsh Shakti Weight: 18 kg Color: Green Design: Cylindrical with rollers at base Features: Gas (with some other gases as mixture) Specifications: Ignition temperature = 600 C, calorific value = 7000- 8000 kcal/m3 Service: Sparsh products have free quarterly services for 1 year. 2. Price: From the market research we have found that Rs 300 350 was the most preferred price for the cooking gas cylinder & hence we have kept our price at Rs 375 for Sparsh Shakti which is a very reasonable price, not far from the market expectation and also financial viable for us. 3. Place: Considering this requirements Sparsh manufacturing plant and gas generation plant will be located at Mulshi near Mulshi Lake which is about 30 km from Pune city. The headquarter of Sparsh Bio-innovations is located in Pune city. 4. Promotion: Via Sparsh family cards, local shops, online marketing, banners, brochures and magazines in and around municipality areas, local business areas etc. Marketing: An intensive market research has been done before entering into this venture based upon which a strategic and tactical marketing plan and segmentation has been designed to maximize earnings and profits.

Sparsh Bio-Innovations LLP | Touching Lives Like None Other.

If the lpg gas keeps on increasing,what will you do? Check for an alternative Stay with the same product Reduce consumption 8% 8%

Which component is affecting you the most in the current LPG gas cylinder? Service 10% Safety 18% Availabili ty 24% Price 48%

84%

POTENTIAL CUSTOMERS CATERING SERVICE STREET VENDORS 20% 43% 28% 9% DOMESTIC HOTELS

Target Segment: Our target segment is Catering services in IT industry, Street Vendors, Academic Institutions & Hotels & restaurants. Technology The basic concept of the design is based on a process known as Up flow Anaerobic Sludge Blanket (UASB) developed by Dr. Lettingah in the Netherlands. Process Description The waste with suitable quantity of water will be collected in a grit removal cum mixing chamber where grit will get settled at the bottom and feathers will be removed from the top using slow moving scrapper mechanism. The mixing mechanism in the chamber will help in preparation of homogenized slurry. The homogenized slurry is then fed into a modified UASB digester. The Anaerobic Digester is a two stage hybrid High Rate Biomethanation Digester. Both the digesters contain internal proprietary modular system. They are also provided with gas tight top cover with slow revolving scum breaker mechanism which breaks the scum. The treated overflow from the outlet of both the digesters is connected to recycle chamber and then is partly recycled into the system for slurry preparation and the rest to be treated separately. Three phase separation takes place in the digesters:Biogas- which will be collected and will be bottled after enrichment. Organic Manure- which is periodically removed can be used as good organic manure. Overflow - part of which will be recycled for slurry preparation and remaining to be treated separately. The Biogas generated from both the digesters is collected in dry membrane type of biogas holder housed in an enclosure/room. The Biogas utilization system comprises of Biogas Blower, Biogas Receiver tank with requisite safety and automation. The pressurized biogas will be cleaned using a scrubber and then used for power generation or bottling after enrichment. The sludge from the bottom of both the digesters is periodically removed and can be used as good organic manure. The liquid fraction/ Overflow can be discharged after suitable dilution. Biogas flare is used to flare the biogas when not in use, excess generation or during shut down. Sparsh Bio-Innovations LLP | Touching Lives Like None Other. 2

Technology Providers EPCC : Krishna Engineering & Consultants Experience : EESCO with Experience in Biogas Sector Technology : USAB technology Average Cylinders: 200 Units /Day of 18 Kg Per Unit cost: Cost (RS) 20 60 20 5 40 15 75 235 36 16 21 73 308

Column1 Particular's Variable Procurement of residue Transportation of residue Additives (Oils & Gases) Chemicals Packaging material Labour Utilities Fixed Plant Overheads Office Overheads Store Overhead

Total per unit cost

Financial Highlights:1. Total Project Cost & Means of Finance

Sl. No. Descriptions

A B TOTAL CAPITAL INVESTMENT MEANS OF FINANCE
1 Venture Capitalist 2 Secured Term Loan 3 Capital Incentive Subsidy @ 30% for project cost

Amount in (Rs)
128,500,000
12,850,000 77,100,000 38,550,000

2. Sparsh Financial Excel Sheet (Cost of Production, Profit & Loss, IRR etc.) Please click on the icon below to open the excel sheet.

Financial structure_Sparsh.xlsx

Sparsh Bio-Innovations LLP | Touching Lives Like None Other.