Define the company/business in a single declarative sentence

Biomass briquette (white coal) manufacturing and sales with objective of providing sustainable and green fuel to the industry displace carbon emission intensive fossil fuels by collection processing of surplus biomass which currently is not being used is a waste

the and and and

Idea Execution Document for Making the Elevator Pitch

Entrepreneurs Unique Registration Code: 699E8AS7
Entrepreneur Name: Sourabh Sodani, Sourabh Jain

Email id: sourabh.sodani@gmail.com; sourabhjain13@gmail.com

Mobile number: +91 99870 15028

Briquetting manufacturing process

-collection from fields/agro industry waste/forest waste from a distance of 0-50 kms to keep transportation costs low

Briquetting process

- Chipping and cutting to small size

- Compacting under high temperature & pressure

Biomass Briquette transported to industrial consumers over small distances to keep transport costs low

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Company Profile
Core Team profile: (A). Sourabh Sodani: 8 years of Project management and software engineering with leading companies TCS and Avaya Educational background: M.Tech, BITS Pilani B.E. (Electronics & telecom), BIT Bhilai Family background: Agri-business (B). Sourabh Jain: 8 years of sales and business development experience with leading corporates in textile, banking, climate change and renewable energy Educational background: Fellowship in Energy in low carbon economy, University of Birmingham, UK MBA (Marketing & IT), MDI Gurgaon B.E. (Electronics & Telecom), BIT Bhilai, Family background: Business Name and contact details of your company: Green Power and Agri Ventures Pvt. Ltd., (to be registered) Current revenues : Ideation stage ; no revenues Key customers/markets: Potential customers to include: manufacturing companies burning coal and furnace oil to generate steam and/or power (Phase I ,II,III) State electricity grid / corporates/ high load consumers of electricity ( Phase IV)

Need
Describe the needs your business idea is trying to fulfill. How are these needs met currently?
Type of need Importancemajor /moderate/minor Alternate available to industry Current status of the needs

Energy
Need to be seen as sustainable and eco-friendly

Major
Moderate to Major

Yes
To some extent; high capex alternatives; need to be used in conjunction with our product No No Yes but not competing

Met by Coal, furnace oil

Mostly unmet. Met in some areas with availability of gas as a fuel Mostly unmet Partially met Huge unmet demand

Carbon credit revenues Meet emission standards set by regulatory authorities/ pollution control board Sustainable development of rural area

Major Major Major

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Who are your target customers? What is the market potential? All manufacturing companies that generate steam and power by burning coal/furnace oil to meet process requirements are our target clients. Market potential is infinite and all surplus renewable biomass available in the country cannot meet even a significant fraction of the requirement of energy. The estimated supply in Indore industrial area (1st target area) is 50-70 tonnes/day which is not sufficient to meet requirement of even one large company

Value Proposition
Describe your offering Biomass briquette is made by compacting waste biomass such as agri , agro industry and forest waste. It has high calorific value and is used as fuel to replace coal & furnace oil in boilers/furnaces. How does your offering solve the problem?
Case study ABC Ltd. requires steam in the production process of manufacturing paper. Coal is burnt in the boiler to produce steam. Green house gas emission is x tonne per tonne of coal burnt leading to higher carbon footprint. Europe, USA, Japan are expected to levy carbon tax on imports with high carbon footprint thereby making exports less profitable. Cost of coal has also increased over years owing to higher demand due to industrialization. Coal transportation costs have also demonstrated a rising trend. Company has higher working capital costs due to the need to maintain coal inventory of 30 days in order to meet uncertainties related to transport strike, etc. else the production will suffer. ABC switches from coal to our product for steam generation at similar costs. Resulting lower carbon footprint has increased acceptability in export markets. Company has launched premium range of Green Paper . Briquette is produced locally and supply is less affected by rise in transportation costs, strikes, delays in transportation over long distances. All this has resulted in improved production planning and profitability. ABC has been applauded by government. and 6 investors for green manufacturing practice.

Greener fuel Meets CSR objectives Lower emissions help meet statutory requirement Greater customer acceptability

Locally produced fuel Lower transportation cost

Lower stocking requirement; lower working capital Lower uncertainty in availability

Costs Cost similar to fossil fuel Coal costs to rise over period, briquette cost not expected to exceed fossil fuel

Efficient

Smoother burning compared to coal

Transportation, storage and handling convenient & efficient

Costs to be offset through CER & REC revenues

http://en.wikipedia.org/wiki/Briquette http://www.youtube.com/watch?v=UZXWdrw-6Ws&feature=related

Value Proposition contd

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Competition
Competitor Segments
Coal mining companies & distribution network

Offerings

Merit of competitors product over ours

Available in huge volumes

Merit of our product over competitor offering

Coal

Petroleum companies

Furnace oil

Available in huge volumes

High availability, easier handling

-Green fuel with nil net carbon emission - Smoother combustion - Lower transportation cost --Preferred fuel for pharma, food processing industries --Need a very small local client base Local fuel, renewable energy, does not need huge capex in laying of pipelines for distribution, boiler replacement not necessary and small modification sufficient to fire briquette as against using gas, not governed by prioritisation policies of government as in gas Applicable for wider industry segment (most processes cannot be shifted to electricity), reliable as against electricity availability, does not require capex as in shifting exisiting processes to electricity NIL (There are 3-4 briquette manufacturers supplying 50 tonnes per day in Indore market (1st target area). This supply is not sufficient for even one single large consumer). Competition will arise in biomass sourcing. 1st mover advantage, relationship with farmers, ownership of agricultural equipments to help farmers 8 clear fields would be competitive advantages

Petroleum companies

Gas

Electricity grid

Electricity

Ease of use

Other Briquette manufacturers

Biomass briquette

NIL

Business Model
How do you plan to make money? Average expected price to consumer : Rs. 3200 3400 per tonne (same as coal price in Indore) Average expected collection cost of biomass : Rs. 1500 per tonne Processing cost : Rs. 600 per tonne Transport cost: Rs. 500 600 per tonne Gross Margin : Rs. 500- 700 per tonne ; 16% - 21% Estimated payback period: <3 years How will you price your product/service? Pricing will be similar to the average landed coal price (of similar calorific value) in the target markets. Premium pricing can also be explored. How will you reach out to your consumers/deliver your product to them? a. Contact existing users in target markets users want assured supply once they have switched from fossil fuel to briquettes and would source from multiple suppliers so as to reduce dependency on single supplier b. Segmentation food processing, pharma, etc. where clean fuel is preferred to control quality of output - The 1st target market Indore has high number of food processing and pharma companies c. Large corporates that have demonstrated emphasis on sustainability, CSR d. Exporters to carbon footprint conscious markets like Europe, Japan, etc. e. Other users on least preferred basis like biomass based power projects, briquette traders
9

Funding requirement

Phase I II III IV

No. of units (18 tonnes/day) 1 5 20 Biomass based/solar decentralised power projects/ related business areas

Cost (Rs. Lacs) 70 350 1400

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10

Way forward possible future areas of growth

Biomass based tri-generation , sell steam and power to rural industries and cooling to cold storages

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11

Step into sustainable growth with us Thank you

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12

Backup Slides

Costing Calculation For a Single Unit

SN 1 2 3 4 5 6

Item Cost (in Lakhs) Factory Land (2-3 acres) 8 Building Construction 5 Plant Machinery 20 Other Assets/ Expenses 1 Working Capital 24 Developmental Cost (1 lakh per month) 12 Total 70

Working Capital Calculation

SN

Item Basis 1st year 2nd Year 3rd Year 1 Raw Material 45 days 1215000 2 Finished Goods 15 days 675000 3 Other Expeses 500000 Total 2390000 2987500 3585000 Total (in lakhs) 24 30 36

Annual Sales Expected

Finished Product Name: Machine Output: Num of working days in a year: Yearly Output (M.T.): Rate per M.T.: Total Sales Value: Total Sales Value (in Lakhs):

While Coal 18 MT per day 255 4590 3200-3400 14688000 146

Annual requirement of raw material

Requirement per day Num of working days in a year: Yearly Requirement (M.T.): Rate per M.T.: Total Raw Material Cost: Total Raw Material Cost (in Lakhs): 18 MT 255 4590 1500 6885000 69

Profitability Statement & Payback Calculation

SN

Item 1st year 2nd year 3rd year 4th year 5th year 6th year 1 Ner profit before tax (in lakhs) 10.28 14.9344 19.54387 19.33381 19.08895 18.81348 2 Depreciation (in lakhs) 3.12 2.7456 2.416128 2.126193 1.87105 1.646524 3 Gross Surplus (in lakhs) 13.4 17.68 21.96 21.46 20.96 20.46 4 Cumulative Gross Surplus (in lakhs) 13.4 31.08 53.04 74.5 95.46 115.92

Total capital investment is total cost - working capital = 70 -24 = 46 lakhs) Total capital investment is 46 lakhs which will be recovered in third year of operation

Total capital investment is 46 Lakhs which will be recovered in third year of operation