The bio-fuel market in India is nascent but expected to grow significantly. It currently consists of ethanol produced from sugarcane molasses and biodiesel from jatropha seeds. While ethanol production was XX billion liters in 20--, biodiesel production was merely YY tonnes. The industry faces challenges of raw material supply constraints and lack of cost competitiveness. However, the national biofuel policy, support from automakers, 100% FDI, and tax exemptions are expected to boost the sector and reduce India's oil import dependence. Major players include Company W, X, Y and Z, while new entrants are also entering the growing market.

1. Bio-fuel Market - India
June 2009

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. •Industry Overview
•Drivers & Challenges
•Government Policies & Initiatives
•Competition
•Investments
•Key Developments
BIO-FUEL MARKET – INDIA. PPT 3

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. 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. 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. 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. 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
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E-Mail: natasha.mehta@netscribes.com E-Mail: gagan.uppal@netscribes.com
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BIO-FUEL MARKET – INDIA. PPT 8