Renewable energy Supply for rural Areas (RESRA)

Business Plan for VEC

Jijeevisha Samitee,

Process of Business in Project

Purchase crude oil from Market

Oil Seed

Expeller Extra oil to sale in market

Extracti on of oil

De-oiled Cake

Manure

Oil

Biogas Degumming

De-gummer
De Gummed oil to Sale in market for blending with diesel

Biogas genset Farming Activity

Degummed Oil Genset

Electricity

Entrepreneurship

Explanation of Business module to the community

Jijeevisha Will try to explain the project to community business module and how can we earn profit , and the community also earn profit with new business module

Interaction with SVO and DOC markets

Jijeevisha is already in touch with market players of SVO and DOC and some understanding developed already regarding oil seed trading . For this business model survey we meet up with around 15 mediators (seed traders in villages), 3 expeller, and 75 villagers before this presentation. This is again not a authentic data but a assumption with +- 20 %

Avalibility of Jatropha (Area wise)

Within Project Area 21%

Out side project area (out side of district) 55% Out side project area (within district) 24%

Sector and market

Electricity

Current Market-

1. Electric pump(Irrigation, Agriculture) 2. Expeller Machine 3. Huller, flour Mill 1. Rice Mill 2. Forest Produce Processing units 3. Advanced farming 4. Future processing units 5. Medicinal herbs processing units 6. Packaging units for organic produce and herbs 7. Cold storage units 8. Dairy and its produce

Future Market-

Sector and market

SVO
Current Market1. Electricity Generation for the Project 2. for Blending with Diesel to run Diesel pumps and other diesel Engine 3. sale to other Player involved in Bio-fuels 1. for Blending diesel with for all diesel engines 2. Bio-diesel production, 3. Production of export quality SVO

Future Market-

Sector and Market

DOC
Market for DOCCurrent Market 1. As bio fertilizer 2. Supply to NABARDs WADI project as organic fertilizer 1. Bio-fertilizer Production units 2. Supply to Governmental agencies 3. Organic farms 4. Biogas unit

Future Market

Variation in price of DOC and oil

45 40 35 30

Price Rs.

25 20 15 10 5 0 Month Jan 6.5 39 Feb 7 40 Mar 8 41 Apr 8.5 42 May 8.5 39.5 Jun 9 38 Jul 9 37 Aug 6.5 35 Sep 5.5 36 Oct 5.5 36 Nov 6 37 Dec 6 38

DOC

SVO

Electricity- Government supply is subsidized for farmers but not reliable and sufficient supply is there. Per unit cost of diesel pumps (in term of Electricity)is about- 12-17

Variation in price of Jatropha seed

35 30 25 20 15 12.5 10 5 0 jan feb mar apr may jun jul aug sep oct nov dec Variation in price and moisture contain of the Jatropha Seeds Annual 13 13 7 7 7 7 7 7 8 8.5 7

Variation in price and Moisture contain in Jatropha Seed

22 22 15

14

14

14

13.5

Moisture contain 12 9 9.5 11.5 11.5 Price of Jatropha Seeds

As per current Jatropha Market Rates we made this conclusion the purchase rates of JATROPHA is Rs. 14.00 per kg . F.O.R. And this business proposal is developed on the basis of this rate.

Future of our business

Demand of Bio-fuel is increasing day by day Demand for organic produces is increasing and there

is good market Demand of Electricity, SVO, DOC is huge in rural market this opportunity is advantage for rural community we are working for, and for this business module
Since we are working in this fields and area from last two years and villagers trust with us and GIZ this is our responsibility to maintain it.

Scope of Oil Business and of Renewable Energy

We are not sure about overall turn over our market share will be little but we can cover all Korba and its surrounding Since demand renewable is increasing day by day we are sure about growth of our business

Our Customer for different products

Customers readily available
Electricity 9 Electric pump 1 Ready to eat unit 1 Flour mill Expelling units of the project To Run Genset for the project To Blend with Diesel Engines / pumps NABARDs WADI project Jijeevisha Farms Organic fertilizer units in Raipur and other places

SVO

DOC

Expelling service - Mahuva and kusum produced in bulk within and near by project area for Expelling Service.

Specialty of our offer

We can provide reliable electricity to start business within project area Reliable electricity supply for irrigation purpose Less cost than to run Diesel engines Support to Farmers entrepreneurs to setting up their bussines SVO Supply of Degummed SVO since no units of de-gummer is running in the region. Supply of degummed oil for blending with diesel
There are no any other market player for degummed SVO and reliable electricity in project area

Sales promotion of the products

ElectricityReliable electricity Electricity at door step through mobile Generator Free consultancy to electricity users for growth of their business

DOCSale of DOC with more organic additive (Micro nutrients) Sale of DOC in packets and in ready to use form

SVOSale of degummed SVO as diesel additive Sale of Degummed SVO in pouches as requirement of farmers and other diesel engine users Search of Market oversea(Export market)

Since we have our previous expertise in customer dealing we are able to fully satisfy our customer

projected Expenses during Launch

On Commissioning of -(Genset, Expeller, De-gummer, Decorticator, Screener and other accessories) Activity floor/platform around Genset unit (600sq feet) Different types/ size container Fencing around the sheds Weight machine/ for Seed and DOC, Volume meter(Liter) for SVO Packaging unit for DOC and other products Supply cable in pole erected already Cable drum with 200 mtrs. cable for supply electricity( fitted in trolley) Small Lab Unit for Quality Control One Tractor with trolley unit for mobile Generator One 5 HP Pump,with 200 mtrs. Canvas pipe ( fitted on trolly)

Payment system
Payment system for consumer shall be in form of cash(Part payment) or barter system as per requirement and situation of the customer. most of the customers will pay after grow and sell of their product .

This is an opportunity for us to work for the villagers and become pioneer in the fields of Biofuel and SVO.
Opportunities To work in the cluster where villagers are well oriented to benefits of the project Being pioneer in the fields of Biofuel and SVO production Government also promoting biofuel business it help the project Risks Natural Calamities Unpredictable fruiting of oil seeds Theft of goods and products

Future of RESRA villages

We are looking a develop village with good business sense and they have opportunities to make their future bright
In worst case villagers would live better in condition as of now

Seasonal availability of oil seeds

Trading / Expelling services could be done of oil seeds in a year Max (based on assumptions and survey with villagers , oil seed traders, oil mills and other )
Available quantity in Tons

Jan Feb Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jatropha
mahua Kusum

10
1 0

5
1 0

0
1 0

2
1 0

2
1 0

2
5 0

5
50 20

5
50 50

20
15 50

40
1 3

20
1 4

10
1 0

121
128 127

Other(Eadible and non eadible)

2 13

2 8

2 3

1 4

1 4

1 8

1 76

1 106

1 86

1 45

1 26

16

13 392

Cost of SVO and DOC

121000 Kg jatropha Moisture loss@5% (-6050 Kg) Balance -114950 Kg 27% oil contain of 114950 Kg is 31036.5Kg and 73% DOC is 83913.5 Kg SVO In liters(0.9 liters/Kg of SVO) 27932.85Liters Price of Jatropha- Rs 14.00 p/Kg ,total Quantity- 121000 KG= Rs. 1694000.00 Expelling Cost of 121000 Kgs of Jatropha @ Rs 1.50 pkg =Rs. 181500.00 Degumming cost of 31036.5 Kg of SVO @Rs0.50 pkg. =Rs. 15518.25 Total Amount =Rs. 1891018.30 To Produce 27932.85 ltr SVO and 83913.5 KGs DOC cost =Rs. 18,91,018.30 To Manage SVO price VEC will cost Rs. 5.00/Kg for DOC(-)=Rs. 4,19,567.50 Production Cost of 27932.85 Ltr of SVO is =Rs. 1471450.80 Production Cost of SVO Rs.1471450.00 / 27932.85 kg Profitte of VEC per Kg Selling Rate of SVO per Kg DOC cost 5/= VEC profit 3/= per kg Selling Price per kg =Rs. =Rs. =Rs. =Rs. 52.68 1.32 54.00 8.00

ELECTICITY GENERATION (kwh)

1st YEAR
(20+20 KW) 40 actual Running Month Electricity Efficiency production hrs/day /day years production

(-25%) 10 30

24

12 69120 29400 ? ? 39720 KWH

Electricity consume of expeller Electricity consume for decorticator Electricity consume for de-gummer Electricity to sale in market

ELECTRICITY COST PER UNIT

KW Elec cost Actual Elec generate 20 Efficiency Loss 25% Fuel/ p.hr 4 54.00 15 VEC-Exp+prof Electric cost per Kw/pr hr. 1.40 216.00 14.40

16.00

SVO REQUIRE FOR GENRATING ELETRICITY

Estimated SVO Generato consumption r 1 & 2 of ltrs. per hour 20 KW for each each generator Estimated Estimated running running per day in days per Hrs yrs.

Total SVO consumption to run both Gen set 9216 9216

20 20

4 4

8 8

288 288

SVO cosume per year

18432

Ltrs.

INCOME FROM EXPELLER JOB WORK

All Seed kg

Expelling Rate Rs./kg

Income Rs.

Elect Cost Rs.

Income Rs.

392000.00

1.5

588000.00 470400.00

117600.00

hours Generator use for expelling 7.5 Kw for 100 kg/prhr 12 month Rs exp in electric

Per Month

Yrs.

per annum elec rate

Explr elec

3920

12

29400

16

470400.00

Management and key positions

Sn
1 2 3 4 5 6 7 8 9 10

Basic team for RESRA

Project In charge Marketing Mechanic Purchase Labor Accountant Quality Control manager Storekeeper Operator Watch man _ _ _ _ _ _ _ _ _ _

no.of posts
1 2 1 1 3 1 1 1 1 1

Manpower Requirement
s.no 1 2 3 Man Power Project Incharge Project assitant Marketing Year 1 1 0 2 1 Year 2 Year 3 Year 4 Year 5 2 Gen set 7 Gen set 24 Gen set

4
5 6

Asst. Marketting
Mechenic Asst Mechenic

0
1 0

1
1 3 1 1 1 7 1 17

7
8 9 10

Purchase
Labour Accountant Asst Accountant

1
3 1 0

11
12 13 14

Quality Controll manager

Storekeepar Operator Watch man/operator

1
1 1

SALARY MAN POWER EXPENCES

s.no 1 1 1 1 3 1 1 1 1 1 Man Power Project Incharge Marketing Mechanic Purchase Labour Accountant Quality Controll manager Storekeepar Operator Watch man Salary 12000 6000 4000 6000 2500 5000 10000 4000 2500 2500 month paid by Paid by VEC us 12000 6000 4000 6000 7500 5000 10000 4000 2500 2500 42500 17000 12 12 510000 204000

Sort term personnel requirement

Survey team for Land Availability for agriculture and advanced Farming Survey team for Soil and crop analysis Survey team to Develop barren Land into fertile land Team to survey of water resources and its development

Team for the development of Irrigation facility at farming land Team to develop Irrigation channel ie. Drip Irrigation, Sprinkler etc.
Agriculture expert Market Study for SVO, DOC, and electricity Market Study on agriculture produce and its processing Quality Experts, to produce export quality product.

PRODUCTION EXPENCES
SVO for Elect Electricity for expeller Expeller cost for SVO Degumming 54.00 16.00 1.50 0.50 18432 29400 121000 31036.50 995328.00 470400.00 181500.00 15518.25

Total Production Cost

Rs.

1662746.25

Total expenses
Salary Maintenance Fuel/Vehical Stationery/phone Misc Sub-total Jetropha 14 204000 120000 120000 24000 24000 492000 121000 492000 1694000

2186000

Profit to VEC
Income of VEC Kg/ltr/unit SVO DOC 27932.85 83913.5 prf/rate 1.32 3 Profit 36871.36 251740.50

Electricity
expelling

69120

1.6

110592.00
117600.00 516803.86

Salary
Net Profitt of VEC

510000.00
6803.86

TOTAL INCOME
ELECTRICITY Expeller SVO DOC 16.00 1.5 54.00 8 69120 392000 27932.85 83913.50 1105920.00 588000.00 1508373.90 671308.00 3873601.90 Production Expenses Expences Less Less -1662746.25 -2186000.00

Net Profitt /loss

24855.90