Thammasat Consulting Group Visaruth Taveeruchana Phornthep Thakral Chatree Wangpanitkul Nattapon Lertpraival
 
COMPANY BACKGROUND <ul><li>Established 1994; Philla Rocco & Christine Eibs-Singer </li></ul><ul><li>Business focus: Clean ...
SITUATIONAL ANALYSIS 1.6 billion people    no access to electricity  80%    rural areas of developing countries 80%   i...
Funded  3 successful entrepreneurs  AFRICA <ul><li>Annaset, Ghana </li></ul><ul><li>LPG </li></ul><ul><li>Household   70%...
Implication: Target India <ul><li>population    1,1 billion people </li></ul><ul><li>17% of world population </li></ul><u...
<ul><li>Current sources of funds, </li></ul><ul><li>Grants    social investors, donors, and charitable organizations </li...
ISSUES & OBJECTIVES ISSUES African Market  Source of Funds Indian Market Where we want to be in 2020 Where  we are <ul><li...
Issues Objectives African Market Indian Market Source of funds To increase environmental and social impact of  60m people ...
II. The Peacock Strategy I. The Path Finding Strategy III. The Fund Raising Strategy
The Path Finding Strategy
The Path Finding Strategy Why? 1 Where? 2 How? 3 <ul><li>49% of funds in Africa </li></ul><ul><li>sub-Saharan region    n...
Why? 1 Where? 2 How? 3 The Path Finding Strategy
Why? 1 Where? 2 How? 3 Country Mozambique Burkina Faso Malawi Pop. w/o electricity in mil. CRITERIA FOR COUNRTY SELECTION ...
Why? 1 Where? 2 How? 3 Leverage competencies Marketing strategy <ul><li>Past experience with annaset, Vent L’Eau pour la V...
Why? 1 Where? 2 How? 3 Leverage competencies Marketing strategy <ul><li>Past experience with annaset, Vent L’Eau pour la V...
The Peacock Strategy
Population    1.1 billion people
17% of world population
72.22% of the people live in more than 550,000 villages  With 22% below poverty line
55% of population don’t have electricity!!!
Coal provides 70% of Indian electricity
<ul><li>Mining    environmental damage, including pollution of water, depletion of water supply, destruction of land, har...
Why Where 1 2 How 3 Region Middle West North Population density/Km meter CRITERIA FOR REGION SELECTION Population w/o elec...
Why Where 1 2 How 3 COAL CURRENTLY, <ul><li>Unhealthy </li></ul><ul><li>huge emission of Carbon dioxide </li></ul><ul><li>...
Why Where 1 2 How 3 BIO-MASS FUEL BRIQUETTES RATIONALE A briquette (or briquet) is a block of flammable matter  which is u...
Why Where 1 2 How 3 Aggressive strategies    financial & HR constraints Proposed JV with ETC Energy <ul><li>RATIONALE </l...
Why Where 1 2 How 3 Aggressive strategies    financial & HR constraints Proposed JV with ETC Energy <ul><li>RATIONALE </l...
The Fund Raising  Strategy
The Fund Raising Strategy Current Strategy Extended Strategy <ul><li>Funds, Partnership and financial institutions </li></...
Current Strategy Extended Strategy <ul><li>Interest Revenue </li></ul><ul><li>increase funds for entrepreneur </li></ul><u...
Current Strategy Extended Strategy <ul><li>Approach large corporations </li></ul><ul><li>Shell (Oil) </li></ul><ul><li>BP ...
Current Strategy Extended Strategy <ul><li>Affiliate with Banks </li></ul><ul><li>Target banks worldwide </li></ul><ul><li...
Carbon dioxide offset    396 million tons Reforested land    3309 hectares; 6.6million trees Providing countless Househo...
 
19  20 17  18 15  16 11  12 Path finding Strategy Partner finding The Peacock Strategy African Country Penetration Approac...
Financial Forecast $36,449,790  $9,741,328  Cash available for investments 2020 2007  
Financial Forecast $22,940,969 $6,645,182 Total Investment 2020 2007  
Financial Forecast
Key Success Factors Attraction of  entrepreneurs Negotiation Skill
Conclusion Issues African Market Indian Market Source of funds Objectives To increase environmental and social impact of  ...
 
Thank you Q&A
Slide Navigator <ul><li>Company Background </li></ul><ul><li>Situational Analysis </li></ul><ul><li>Issues and Objectives ...
Slide Navigator <ul><li>Risk Factors </li></ul><ul><li>Why not carbon? </li></ul><ul><li>Risk of 12 year strategic plan </...
Strengths <ul><li>Proven successful business model </li></ul><ul><li>Learning culture </li></ul><ul><li>E+co’s enterprise ...
Weaknesses <ul><li>Limited pool of resources </li></ul><ul><li>Small identified pool of entrepreneurs </li></ul>
Opportunities <ul><li>La Espranza hydroelectric project </li></ul><ul><li>Partners </li></ul><ul><li>carbon </li></ul>
Threats
Risk Factors <ul><li>Limited pool of entrepreneurs focusing on energy-related business </li></ul><ul><li>Large corporation...
Why not carbon? <ul><li>Trading of carbon credits does not reduce the overall emission of carbon </li></ul><ul><li>Past hi...
Risk of 12 year strategic plan <ul><li>Uncontrollable factors </li></ul><ul><ul><li>Disasters </li></ul></ul><ul><ul><li>P...
Other Joint Venture <ul><li>Stern Fisher </li></ul>
Sources and Citation <ul><li>http://www.worldcoal.org/pages/content/index.asp?PageID=402 </li></ul><ul><li>http://www.rura...
IS Assumption <ul><li>Revenue: </li></ul><ul><li>Contributions – last yr contribution + 10% growth </li></ul><ul><li>  - C...
Average seed investment 15012 Equity 109988 Debt 125000 Average investment per enterprise 118 Total no. of investment 1472...
Loan receivable schedule 0 27765 25637 2128 25637 5 25637 27765 23673 4093 49310 4 49310 27765 21858 5907 71168 3 71168 27...
Loan payment assumption <ul><li>Loans payment (5yr, 6.5%) </li></ul>
No. of Enterprises 224 1956 2020 10% per year 102 million Total Customers 15% Growth of customer base 15000 Customers of n...
No. of Enterprise 2020 48 524 46 million Total Customers 10% per year 15% Growth of customer base 26000 No. of customers p...
Cost estimation Contribution from large  corporations Funds from large corporations $  22,724,275  Promotional marketing a...
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2008 1st Place

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  • Transcript of "2008 1st Place"

    1. 1. Thammasat Consulting Group Visaruth Taveeruchana Phornthep Thakral Chatree Wangpanitkul Nattapon Lertpraival
    2. 3. COMPANY BACKGROUND <ul><li>Established 1994; Philla Rocco & Christine Eibs-Singer </li></ul><ul><li>Business focus: Clean Energy Entrepreneurship </li></ul><ul><li>Honorary Award for outstanding & vision in global renewable energy sector </li></ul><ul><li>3 Distinct Wedges </li></ul>Direct Investment Fund & Affiliates Carbon market transactions
    3. 4. SITUATIONAL ANALYSIS 1.6 billion people  no access to electricity 80%  rural areas of developing countries 80%  in sub-Saharan Africa and India
    4. 5. Funded 3 successful entrepreneurs AFRICA <ul><li>Annaset, Ghana </li></ul><ul><li>LPG </li></ul><ul><li>Household  70% </li></ul><ul><li>Provide 26,958 </li></ul><ul><li>Vent L’Eau pour la Vie, Senegal </li></ul><ul><li>Wind pumps  clean water </li></ul><ul><li>Provide 8,250 </li></ul><ul><li>New Energies </li></ul><ul><li>Solar energy </li></ul><ul><li>target commercial institutions </li></ul>Implication: Scale up impact in Africa SITUATIONAL ANALYSIS 49% of investment  Africa Management focus in African region Less than 1% in Africa
    5. 6. Implication: Target India <ul><li>population  1,1 billion people </li></ul><ul><li>17% of world population </li></ul><ul><li>72.22% of the people live in more than 550,000 villages </li></ul><ul><li>high rate of coal consumption </li></ul><ul><li>Percent of the population under the poverty line : 22% </li></ul>INDIA SITUATIONAL ANALYSIS
    6. 7. <ul><li>Current sources of funds, </li></ul><ul><li>Grants  social investors, donors, and charitable organizations </li></ul><ul><li>Capital investments  E+Co. managed accounts, funds & affiliates </li></ul><ul><li>Financial limitations </li></ul>Implication: Increase source and amount of funds SITUATIONAL ANALYSIS
    7. 8. ISSUES & OBJECTIVES ISSUES African Market Source of Funds Indian Market Where we want to be in 2020 Where we are <ul><li>A company that assist and fund clean energy entrepreneurship </li></ul><ul><li>Providing 3.6 mn people with modern energy service </li></ul><ul><li>investing in 138 companies </li></ul><ul><li>To achieve higher impact on the environment through clean energy entrepreneurship </li></ul><ul><li>Provide 100 million people with access to modern energy service </li></ul><ul><li>targeting to invest in 2000 companies </li></ul>
    8. 9. Issues Objectives African Market Indian Market Source of funds To increase environmental and social impact of 60m people in sub-Saharan region To increase environmental and social impact of 40m people in the Indian sub-continent To generate more funds in order to facilitate more operations in Africa and India ISSUES & OBJECTIVES
    9. 10. II. The Peacock Strategy I. The Path Finding Strategy III. The Fund Raising Strategy
    10. 11. The Path Finding Strategy
    11. 12. The Path Finding Strategy Why? 1 Where? 2 How? 3 <ul><li>49% of funds in Africa </li></ul><ul><li>sub-Saharan region  no access to electricity </li></ul><ul><li>high potential of energy conservation opportunity </li></ul><ul><li>has funded successful business venture </li></ul>RATIONALE
    12. 13. Why? 1 Where? 2 How? 3 The Path Finding Strategy
    13. 14. Why? 1 Where? 2 How? 3 Country Mozambique Burkina Faso Malawi Pop. w/o electricity in mil. CRITERIA FOR COUNRTY SELECTION Madagascar Kenya Morocco Cameroon Political Stability Rural Poverty (GNI in $) Rwanda 1 2 3 4 5 6 7 8 Nigeria Zimbabwe 9 10 17 11 15 11 9 13 29 8 73 8 0.55 0.31 0.3 -0.1 -0.14 -0.5 -0.86 -1.35 -1.49 -1.62 The Path Finding Strategy 530 - 1,250 less than 530 Less than 530 less than 530 530-1250 3000-9130 less than 530 less than 530 less than 530 less than 530
    14. 15. Why? 1 Where? 2 How? 3 Leverage competencies Marketing strategy <ul><li>Past experience with annaset, Vent L’Eau pour la Vie & new energies </li></ul><ul><li>leverage on the training experience of the above companies </li></ul><ul><li>Organize seminars & entrepreneur toolkit  encourage & stimulate interest </li></ul><ul><li>Key message “ Think Business, Think Green” </li></ul>The Path Finding Strategy
    15. 16. Why? 1 Where? 2 How? 3 Leverage competencies Marketing strategy <ul><li>Past experience with annaset, Vent L’Eau pour la Vie & new energies </li></ul><ul><li>leverage on the training experience of the above companies </li></ul><ul><li>Organize seminars & entrepreneur toolkit  encourage & stimulate interest </li></ul><ul><li>Key message “ Think Business, Think Green” </li></ul>The Path Finding Strategy Prioritization of countries Invest in 810 new enterprise in 14years
    16. 17. The Peacock Strategy
    17. 18. Population  1.1 billion people
    18. 19. 17% of world population
    19. 20. 72.22% of the people live in more than 550,000 villages With 22% below poverty line
    20. 21. 55% of population don’t have electricity!!!
    21. 22. Coal provides 70% of Indian electricity
    22. 23. <ul><li>Mining  environmental damage, including pollution of water, depletion of water supply, destruction of land, harm to health and safety, ,major greenhouse gas and leads to more global warming. </li></ul>IMPLICATION: Focus on reducing coal as an energy Why Where 1 2 How 3 The Peacock Strategy
    23. 24. Why Where 1 2 How 3 Region Middle West North Population density/Km meter CRITERIA FOR REGION SELECTION Population w/o electricity (in million) Coal consumption (million tons) East South 341 208 441 302 82 140 64 107 129 62 107 49 81 439 170 The Peacock Strategy 1 2 3
    24. 25. Why Where 1 2 How 3 COAL CURRENTLY, <ul><li>Unhealthy </li></ul><ul><li>huge emission of Carbon dioxide </li></ul><ul><li>Non-renewable energy </li></ul><ul><li>environmental damaging </li></ul>x BIO-MASS FUEL BRIQUETTES The Peacock Strategy
    25. 26. Why Where 1 2 How 3 BIO-MASS FUEL BRIQUETTES RATIONALE A briquette (or briquet) is a block of flammable matter which is used as fuel to start and maintain a fire. <ul><li>replacement for oil & coal </li></ul><ul><li>renewable source of energy </li></ul><ul><li>help reduce carbon content in air </li></ul><ul><li>Eco friendly, non polluting and economical </li></ul><ul><li>100% natural </li></ul><ul><li>available from agricultural waste </li></ul>The Peacock Strategy
    26. 27. Why Where 1 2 How 3 Aggressive strategies  financial & HR constraints Proposed JV with ETC Energy <ul><li>RATIONALE </li></ul><ul><li>Goal congruence </li></ul><ul><li>Financial and human resource assistance </li></ul><ul><li>Same size allow flexibility </li></ul><ul><li>Larger scope of operation </li></ul>The Peacock Strategy
    27. 28. Why Where 1 2 How 3 Aggressive strategies  financial & HR constraints Proposed JV with ETC Energy <ul><li>RATIONALE </li></ul><ul><li>Goal congruence </li></ul><ul><li>Financial and human resource assistance </li></ul><ul><li>Same size allow flexibility </li></ul><ul><li>Larger scope of operation </li></ul>Assist, train, and help local entrepreneurs implement a business model for Briquette usage Ease the Financial & HR constraints Invest in 1009 enterprise in 14 years The Peacock Strategy
    28. 29. The Fund Raising Strategy
    29. 30. The Fund Raising Strategy Current Strategy Extended Strategy <ul><li>Funds, Partnership and financial institutions </li></ul><ul><li>Receive Grants & Capital Investments </li></ul><ul><li>Greenpeace Intl., Citigroup foundation, Bill & Melinda Gates foundation </li></ul>+ <ul><li>Approach more foundations </li></ul><ul><li>To Receive more funds from more foundations </li></ul><ul><li>Government organizations, terrapass funds etc. </li></ul>
    30. 31. Current Strategy Extended Strategy <ul><li>Interest Revenue </li></ul><ul><li>increase funds for entrepreneur </li></ul><ul><li>increase in number of successful entrepreneurs </li></ul><ul><li>leads to snowballing effect </li></ul>The Fund Raising Strategy
    31. 32. Current Strategy Extended Strategy <ul><li>Approach large corporations </li></ul><ul><li>Shell (Oil) </li></ul><ul><li>BP (Oil and energy) </li></ul><ul><li>Vodafone (telecommunications) </li></ul><ul><li>General Motors (Automobiles) </li></ul><ul><li>Home Dep. (Furniture) </li></ul><ul><li>Value Proposition </li></ul><ul><li>CSR image  reputation & brand </li></ul><ul><li>Competitive Advantage </li></ul><ul><li>Enhance employee relationship </li></ul><ul><li>Advertisement </li></ul><ul><li>Strong relationship with community </li></ul>The Fund Raising Strategy
    32. 33. Current Strategy Extended Strategy <ul><li>Affiliate with Banks </li></ul><ul><li>Target banks worldwide </li></ul><ul><li>access to large funds </li></ul><ul><li>Example: HSBC, JP Morgan, Bank of Amercia </li></ul>The Fund Raising Strategy
    33. 34. Carbon dioxide offset  396 million tons Reforested land  3309 hectares; 6.6million trees Providing countless Households with clean water Kerosene Displaced  6 million liters
    34. 36. 19 20 17 18 15 16 11 12 Path finding Strategy Partner finding The Peacock Strategy African Country Penetration Approach Large corporation India penetration Fund raising 07 08 09 10 13 14 Affiliate with banks One country per year Timeline
    35. 37. Financial Forecast $36,449,790 $9,741,328 Cash available for investments 2020 2007  
    36. 38. Financial Forecast $22,940,969 $6,645,182 Total Investment 2020 2007  
    37. 39. Financial Forecast
    38. 40. Key Success Factors Attraction of entrepreneurs Negotiation Skill
    39. 41. Conclusion Issues African Market Indian Market Source of funds Objectives To increase environmental and social impact of 60m people in sub-Saharan region To increase environmental and social impact of 40m people in the Indian sub-continent To generate more funds in order to facilitate more operations in Africa and India The Path Finding Strategy The Peacock Strategy The Fund Raising Strategy
    40. 43. Thank you Q&A
    41. 44. Slide Navigator <ul><li>Company Background </li></ul><ul><li>Situational Analysis </li></ul><ul><li>Issues and Objectives </li></ul><ul><li>Recommendations </li></ul><ul><ul><li>The Path Finding Strategy </li></ul></ul><ul><ul><li>The Peacock Strategy </li></ul></ul><ul><ul><li>The Fund Raising Strategy </li></ul></ul><ul><li>Financial Justification </li></ul><ul><li>KSF </li></ul><ul><li>Conclusion </li></ul><ul><li>Strengths </li></ul><ul><li>Weaknesses </li></ul><ul><li>Opportunities </li></ul><ul><li>Threats </li></ul>
    42. 45. Slide Navigator <ul><li>Risk Factors </li></ul><ul><li>Why not carbon? </li></ul><ul><li>Risk of 12 year strategic plan </li></ul><ul><li>Other Joint Venture </li></ul><ul><li>Sources and Citation </li></ul><ul><li>IS Assumption </li></ul><ul><li>Average seed investment </li></ul><ul><li>Average loans </li></ul><ul><li>Loan payment assumption </li></ul><ul><li>No. of Enterprise </li></ul>
    43. 46. Strengths <ul><li>Proven successful business model </li></ul><ul><li>Learning culture </li></ul><ul><li>E+co’s enterprise model was “technology neutral” </li></ul>
    44. 47. Weaknesses <ul><li>Limited pool of resources </li></ul><ul><li>Small identified pool of entrepreneurs </li></ul>
    45. 48. Opportunities <ul><li>La Espranza hydroelectric project </li></ul><ul><li>Partners </li></ul><ul><li>carbon </li></ul>
    46. 49. Threats
    47. 50. Risk Factors <ul><li>Limited pool of entrepreneurs focusing on energy-related business </li></ul><ul><li>Large corporations do not sponsor us </li></ul><ul><li>High failure rate of new entrepreneurs </li></ul><ul><li>Economic Crisis: entrepreneurs are dependant on economic and political stability </li></ul>
    48. 51. Why not carbon? <ul><li>Trading of carbon credits does not reduce the overall emission of carbon </li></ul><ul><li>Past history have invested a lot of money with La Esparenza but only impacted 194 households </li></ul><ul><li>Limited resources both financially and human resource </li></ul>
    49. 52. Risk of 12 year strategic plan <ul><li>Uncontrollable factors </li></ul><ul><ul><li>Disasters </li></ul></ul><ul><ul><li>Political instability </li></ul></ul><ul><ul><li>Economic instability </li></ul></ul>
    50. 53. Other Joint Venture <ul><li>Stern Fisher </li></ul>
    51. 54. Sources and Citation <ul><li>http://www.worldcoal.org/pages/content/index.asp?PageID=402 </li></ul><ul><li>http://www.ruralpovertyportal.org/english/regions/asia/ind/index.htm </li></ul>
    52. 55. IS Assumption <ul><li>Revenue: </li></ul><ul><li>Contributions – last yr contribution + 10% growth </li></ul><ul><li> - Contribution from large corporations + 10% growth </li></ul><ul><li>Program revenue - % of investments in programs </li></ul><ul><li>Interest income – Cash 2.7% (from annual report) </li></ul><ul><li> - Loans 8.6% </li></ul><ul><li>- Dividend yield 6.3% </li></ul><ul><li>Other income – Remain constant </li></ul><ul><li>Expense: </li></ul><ul><li>Program service - % of investments in programs </li></ul><ul><li>Management and general – Constant growth of 10% </li></ul><ul><li>Grant procurement - % of contribution </li></ul><ul><li>Other expense – Remain constant </li></ul>
    53. 56. Average seed investment 15012 Equity 109988 Debt 125000 Average investment per enterprise 118 Total no. of investment 14721633 Total amount of investment 12% 1768000 Equity Investment 88% 12953633 Debt Investment From 1998 to 2006
    54. 57. Loan receivable schedule 0 27765 25637 2128 25637 5 25637 27765 23673 4093 49310 4 49310 27765 21858 5907 71168 3 71168 27765 20183 7582 91352 2 91352 27765 18636 9129 109988 1 Ending Balance Total Pmt Principal pmt Interest pmt Beginning Balance             Loans receivable schedule Average loans($109988, 5 years, 8.3%) :
    55. 58. Loan payment assumption <ul><li>Loans payment (5yr, 6.5%) </li></ul>
    56. 59. No. of Enterprises 224 1956 2020 10% per year 102 million Total Customers 15% Growth of customer base 15000 Customers of new enterprise 26000 No. of customers per old enterprise 203 138 Culmulative No. of enterprise 65 New enterprise 2007 2006 With Recommendation:
    57. 60. No. of Enterprise 2020 48 524 46 million Total Customers 10% per year 15% Growth of customer base 26000 No. of customers per enterprise 152 138 Culmulative No. of enterprise 14 New enterprise 2007 2006 Without Recommendation:
    58. 61. Cost estimation Contribution from large corporations Funds from large corporations $ 22,724,275 Promotional marketing activities Expenses $ 185,898,844 Loans given out Capex

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