Business Plan

Topics: Biogas, Anaerobic digestion, Natural gas Pages: 9 (2107 words) Published: June 21, 2013
SUBMITTED TO: - SUBMITTED BY:- Xyz
EXECUTIVE SUMMARY

BIO-MASS GAS:-BMG is the planned manufacturer and seller of biogas cylinder.Company also produces electricity from biogas.

TEAM:-The Company is set up by Mr. Pankaj Singh and his friends Prachi Garg, Pankaj Mishra, Pankhuri Gupta and Renuka Nagar after completing their PGDM.Our Company aims to become a market leader after five years.

PRODUCT:-In starting company will provide Biomass gas cylinder to the customer and in next five years company will produce electricity from biogas.

INDUSTRY:-Earlier government had also promoted the production of biogas. In rural area government motivate village people to produce biogas and used it for electricity because in rural area condition of electricity is so good. India is a agricultural based country so raw material is easily available in rural area by which we can produce biogas. Since liquefied petroleum gas is scarce source of fuel energy so price of LPG cylinder increases day by day and BMG cylinder will fill this gap. The current market size of LPG is .Our competitive advantage is will be, there is no big player in the market which produce and sell biomass gas cylinder.

OPERATIONS:-Our plant will be setup Patna in Bihar. Because raw material is easily available.Labor is also easily available at appropriate wage rate. Land for plant is also available at low price. Government provide loan for business at lower interest and gives subsidies. For next five years government will not charge any type of tax like VAT and corporate tax.

TARGET MARKET:-We are targeting both high income group family as well as low income group people. Our main target consumer is those families which have low income and they cannot afford LPG cylinder or who have not the connection for LPG cylinder yet. Initially we target a particular state and after one two year we expand our market and we move to another state.

RISK ANALYSIS
Risk occurrenceChances of ImpactMitigation
Competition from LPG providers company LOWLOWWe always keep our cylinder’s price lower then them. Copy of the model by competitorsHIGHLOWAfter two year we has stabled and we has healthy market share then we keep our price low.

REVENUE MODEL:-In year 2015, we will invest Rs. 2.625 crore as capital investment for initial set-up. Set-up will take one year and after six month we start the production. In two years we cover our all fixed costs that means we will get breakeven point in two years and after two years we generate higher profit because we all ready cover our fixed cost. BACKGROUND AND PURPOSE

HISTORY:-Biogas typically refers to a gas produced by the breakdown of organic matter in the absence of oxygen. It is a renewable energy source, like solar and wind energy. Furthermore, biogas can be produced from regionally available raw materials and recycled waste and is environmentally friendly and CO2 neutral. Biogas is produced by the anaerobic digestion or fermentation of biodegradable materials such as manure, sewage, municipal waste, green waste, plant material, and crops.[1] Biogas comprises primarily methane (CH4) and carbon dioxide(CO2) and may have small amounts of hydrogen sulphide (H2S), moisture and siloxanes. Biogas can be used as a fuel in any country for any heating purpose, such as cooking. It can also be used in anaerobic digesters where it is typically used in a gas engine to convert the energy in the gas into electricity and heat. Biogas can be compressed, much like natural gas, and used to power motor vehicles. In the UK, for example, biogas is estimated to have the potential to replace around 17% of vehicle fuel. Biogas is a renewable fuel so it qualifies for renewable energy...
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