Bio Fuel Market India Sample


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Bio Fuel Market India Sample

  1. 1. Bio-fuel Market - India June 2009
  2. 2. Executive Summary Bio-fuels industry in India is at nascent stage and comprises of Industry – Ethanol (made from Sugarcane - molasses) Overview – Bio-diesel (made from Jatropha seeds) Ethanol production was XX bn lites in 20-- while bio-diesel production was merely YY tonnes Production cost of ethanol from molasses is INR A per litre and bio-diesel from jatropha is INR B-C LE per litre Drivers: Challenges: Drivers & Challenges prices MP Increasing energy demand and rise in oil Raw material supply constraints Food vs. fuel A National Bio Fuel Policy Cost competitiveness Policies & Initiatives S Support from automobile manufacturers Government is taking various initiatives to promote bio-fuel sector and reduce India’s dependence on oil imports National policy on ethanol and bio-diesel, 100% FDI and exemption of excise tax will boost the bio-fuel sector Company W is the major player in India with about a% market share Other major players include Company X,Y and Z Competition Indian oil majors, and big corporate houses are foraying into the bio-fuel industry to cash on the untapped potential New entrants include Company A, B,C and D BIO-FUEL MARKET – INDIA. PPT 2
  3. 3. •Industry Overview •Drivers & Challenges •Government Policies & Initiatives •Competition •Investments •Key Developments BIO-FUEL MARKET – INDIA. PPT 3
  4. 4. Indian bio-fuel market is at nascent stage but expected to grow significantly in coming years Industry Overview Production distribution of bio-fuels • Development of bio-fuels is yet at a nascent stage in India but is being actively pursued to reduce India’s dependence on oil imports With x% of crude oil requirement being met through imports, the government is promoting use of bio-fuels LE Punjab Chandigarh • Bio-fuels primarily comprise of: P Haryana Ethanol (made from sugarcane - molasses) Bio-diesel (made from Jatropha seeds) Uttar M Rajasthan Pradesh A • Bio-fuels has significant growth potential in India due S to government initiatives, mechanisms to expand Madhya production capacity and minimize price fluctuations Gujarat Pradesh Chattisgarh of key raw materials Maharashtra Orrisa Daman Category Market Period CAGR & Diu Andhra Ethanol Mixed Petrol Ethanol production U 20-- - -- a% Goa Pradesh Jatropha Bio-Diesel Ethanol production V 20-- - -- >b% Karnataka Puduchery Ethanol & Jatropha Ethanol consumption W 20-- - -- c% Tamil Nadu Bio-diesel production X 20-- - -- >d% Source: BIO-FUEL MARKET – INDIA. PPT 4
  5. 5. Drivers & Challenges Challenges Raw material supply constraints Drivers Food vs. Fuel Increasing energy demand and rising oil prices Lack of Cost Competitiveness National Bio-fuel policy Support from automobile manufacturers BIO-FUEL MARKET – INDIA. PPT 5
  6. 6. Ethanol and bio-diesel policies, 100% FDI and exemption of excise tax will boost bio-fuel sector Ethanol Policy Bio-diesel Policy • Government approved National Policy on Bio-fuel • By the year 20--, the Planning Commission aims to aiming a% blending of bio-fuels with petrol and diesel plant jatropha in X mn hectares of land. This will meet by 20-- in all states except Jammu and Kashmir, the the requirement of b% blend of bio-diesel with petro- north-east and the island territories diesel Policies favouring Bio-fuel growth 100% FDI Exemption of central excise tax • 100% Foreign Direct Investment (FDI) in new and • The central government has exempted bio-diesel from renewable energy is allowed in India, provided bio- central excise tax and is contemplating on bringing bio- fuels are based solely on non-food feed-stocks to be diesel and ethanol under the ambit of 'declared goods’ raised on degraded or wastelands Source: BIO-FUEL MARKET – INDIA. PPT 6
  7. 7. Company W is the major player; many small and big firms, are showing interest in setting up bio-fuel production plants Domestic Bio-fuel Producers Market Share • The bio-fuel industry is at a nascent stage and hence it offers huge untapped potential for existing and upcoming players Others a% • Government initiatives and policies to promote the industry have encouraged new players to enter the LE market P More than a companies (including state owned oil companies and b) have shown interest in the production b% of bio-diesel than v% of the market share • Other Major Players: Company W S M • Praj Industries is the major player in India with more A Company W Revenues of major players (2007-08) Company X Company W A Company Y Company Z Company X B • New entrants: Company U Company Y C Company V INR mn Company Z D Going forward the bio-fuel industry is expected to have more competition and big players Going forward the bio-fuel industry is expected to have more competition and big players Source: BIO-FUEL MARKET – INDIA. PPT 7
  8. 8. Thank you for the attention The Bio-fuel Market - India report is a special feature from Netscribes. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Gagan Uppal Phone: +65 9651 6382 Phone: +91 98364 71499 E-Mail: E-Mail: About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. This report is published for general information only. Although high standards have been used in preparing this report, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and no part may be reproduced without prior written permission. BIO-FUEL MARKET – INDIA. PPT 8