This document proposes a biomass briquettes project in India. It discusses the rationale for the project which is to address the problem of agricultural waste disposal. The objectives are to provide an environmentally friendly and renewable source of energy. An analysis of the biomass and energy industry in India is presented. The document outlines the investment required, production process, potential users, raw materials, and financial incentives for the proposed briquettes project.

2. Submitted By:- Name Roll no. Gagan 14 Sanjay 43 Sunny Kr. 52 Suresh 54 Submitted to:- Mr. Shashank Mehra Centre For Retail Management, FDDI Biomass Briquettes

3. Centre For Retail Management, FDDI Contents Rationale of Project Objective Introduction Industry Analyses Demand Condition Investment Required Potential users of Briquettes Raw Materials Process Financial Incentives References Suresh Gagan Sanjay Sunny Kr. Biomass Briquette

4. Centre For Retail Management, FDDI Rationale of Project Farmers had a problem disposing of the agricultural waste left after harvesting. Biomass Briquettes is the best alternative fuel. Biomass Briquettes give much higher boiler efficiency. Government is encouraging this Industry. Our product helps in reducing the carbon content in the atmosphere and it will also helps in Carbon Trading. Biomass Briquette

5. Centre For Retail Management, FDDI The Indian government has announced plans to provide power to the entire population by 2012 Coal is the dominant commercial fuel. Objective Coal currently provides around 69% of India's electricity demand. Biomass Briquette

6. Centre For Retail Management, FDDI Environment friendly and alternate source of energy should be available to bridge the gap. By the use of Biomass Briquettes it is possible to bridge this gap. Briquettes are cheaper than COAL, OIL or LIGNITE once used cannot be replaced. Biomass briquettes are a renewable source of energy and help reduce the carbon content in the atmosphere. Energy is a key source of development and growth in any economy. Biomass Briquette

8. Centre For Retail Management, FDDI What is Briquette? What is Briquetting? What can be Briquetted? Biomass Briquette Introduction

9. Centre For Retail Management, FDDI Biomass Briquette Industry Analysis India is the sixth largest electricity generating country in the world and accounts for about 4% of global annual electricity generation. India is also ranked as the sixth largest electricity consumer worldwide. The growth trend in global energy consumption is expected to continue in the future

10. Centre For Retail Management, FDDI Growth in primary commercial energy consumption by selected countries, 1993-2002. Developed countries Biomass Briquette

11. Centre For Retail Management, FDDI Biomass consumption in selected Asian countries, based on consumption figures from the year stated. Source: Biomass and Bioenergy 3 Biomass Briquette Country Year Domestic sector Industrial and commercial sector Amount (million tones) Share of total Amount (million tones) Share of total China 1993 458.0 94% 29.4 6% India 1991 231.5 78% 65.9 22% Nepal 1993 15.1 98% 0.3 2% Pakistan 1991 48.5 78% 14 22% Philippines 1995 18.6 70% 8.1 30% Sri Lanka 1993 10.0 87% 1.5 13% Vietnam 1991 29.1 91% 2.9 9%

12. Centre For Retail Management, FDDI Unreliability of electricity supplies is severe enough to constitute a constraint on the country's overall economic development The Indian energy sector faces a number of challenges. Lack of investment in mining - in spite of the economic liberalization of 1991 the coal mining sector has not seen major investments. India has not been able to develop a comprehensive solution to deal with the high levels of fly ash generated at coal power stations through the use of Indian coals. Lowering energy intensity of GDP growth through higher energy efficiency is key to meeting India's energy challenge, ensuring its energy security and tackling CO2 emissions. Biomass Briquette Demand Condition

13. Centre For Retail Management, FDDI Briquettes can be used as replacement Biomass Briquette State Type of industry Briquettes used as replacement for Uttar Pradesh Leather industry, Brick kiln Coal Punjab Solvent extraction oil mill, Brick kiln Coal Gujarat Dye and chemical industry Coal Tamil Nadu / Kerala / Karnataka Tea factories, Rubber factories, Pharmaceutical industries Wood, Leco, Coal Madhya Pradesh/ Maharashtra Textile industry, Pharmaceutical industries, Brick kiln Coal

14. Centre For Retail Management, FDDI Energy chart of different fuels Biomass Briquette Fuels Heat value Price per kg(Rs) Price per 1000kcal(Rs) i. Fuel briquettes 4500-4800 0.70 0.16 ii. Soft wood (not timber quality) with 30% moisture 1650 0.44 0.27 iii. Hard wood (not timber quality) with 30% moisture 2400 0.60 0.29 iv. L.P.G. 7200 3.70 0.51 v. Coal 4000 0.90 0.23 vi. Electricity (1000 Watts) 860 1.00 1.16 vii. Carbonized charcoal briquettes 6000 2.00 0.33

15. Centre For Retail Management, FDDI This product cannot compete with coal or lignite. Thus in states like Orissa, Bihar, and West Bengal etc. which are near to the coal belt the briquette industry is not competitive. However, in states such as Punjab, Haryana, Rajasthan, Gujarat, Karnataka, Tamil Nadu, Kerala etc., which are situated away from the coal belt, and incur high coal transportation costs the briquette industry is competitive. Biomass Briquette

16. Centre For Retail Management, FDDI Installed Capacity The project is with an installed capacity of 1500 tons of briquettes annually on one shift basis to 'operate at 60% capacity in I year 70% in II year and 80% from III year onwards. The project requires about 1500 sq.ft. of shed which can be taken on lease/rent. A monthly rent of Rs.5OOO is considered in working out the economics. Land & Buildings Biomass Briquette Investment Required

17. Centre For Retail Management, FDDI The detais of required plant & machinery are as follows: Biomass Briquette S.No. Details No. Total Price Rs. Lakhs 1. Briquetting machine 1 6.50 2. 4 mm Pulveriser 1 2.50 3. Drier 1 2.00 4. Office equipment & furniture LS 1.00 12.00 Contingencies on machinery @ 10% 1.10 Total 13.10

18. Centre For Retail Management, FDDI Manpower Requirement The requirement of manpower and bill of wages & salaries in III year at 80% capacity utilisation are as follows. Biomass Briquette S.No. Details Number Salary per month in I year Total Rs.lakhs 1. Manager 1 7000 0.84 2. Skilled workers 3 3000 1.08 3. Unskilled workers 6 1600 1.152 4. Supervisors 1 4000 0.48 3.552 Fringe benefit @ 20% + 5% annual rise 0.44 Total 4.44

19. Centre For Retail Management, FDDI Working Capital Requirement The working capital requirement is Rs.2.08 lakhs in III year at 80% capacity utilisation worked out based on one weeks stock of raw material, one month's requirement of utilities & stock of raw material, one month's requirement of utilities and salaries, 2 weeks finished stock and two weeks bills receivables. Preliminary & Pre-operative Expenses The preliminary & pre-operative expenses amount to Rs. 1.81 lakhs including costs towards project report, acquiring loan, travelling, salaries, interest, trial production, deposit & contingencies. Biomass Briquette

20. Centre For Retail Management, FDDI Project Cost & Means of Finance Biomass Briquette Particulars Rs.lakhs I. Project Cost a) Land & building Rented b) Civil works for M/c. etc. 0.20 c) Machinery & equipment 12.10 d) Miscellaneous fixed assets 1.00 e) Preliminary & preoperative expenses including deposits 1.81 Total fixed capital 15.11 f) Working capital margin (in ll year) 0.91 Total project cost 16.02 II. Means of Finance Promoters contribution 6.97 Term loan 9.05

21. Centre For Retail Management, FDDI Annual Operating aResults (at 90 % capacity utilisation in II year) Biomass Briquette Particulars Rs.lakhs A. Cost of Production a. Rent/lease 0.60 b. Raw material 3.63 c. Utilities 3.65 d. Salaries 4.44 e. Packing materials 0.94 f. Repairs, maintenance, insurance 0.38 g. Depreciation 0.61 h. Telephone & post 0.09 i. Selling expenses 0.38 j. Preliminary & preoperative expenses written off 0.08 k. Interest 1.29 l. Administrative overheads 0.33 Total 16.42 B. Net sales 18.82 C. Profit before tax 2.4

22. Centre For Retail Management, FDDI Industry Usage 1. Textile industry 2.Pharmaceutical industries 3. Tea factories 4.Rubber factories 5. Leather industry 6.Brick kilns 7. Dye and chemical industry Other Industry Usage 1. Households (Heating purpose) 2. Schools (Providing mid-day meals) 3. Ironing of clothing 4. Restaurants 5. Furniture (Office & School) Biomass Briquette Potential users of Briquettes

24. Centre For Retail Management, FDDI Agro waste produce by India Type of unit Working season Biomass Briquette Type of Agro waste Quantity (in Million tonnes) Rice husk 10.00 Bagasse 31.00 Groundnut shell 11.10 Stalks 2.00 Various oil stalks 4.50 Straw of various pulses & cereals 225.0 Others 65.90 Total 350.00 Mills Months Rice mill Mid October to April Sugar mill January to June Groundnut oil mill Mid November to Mid August Cotton ginning mill January to May Sawmill All year Jute mill Mfd November to June

25. Centre For Retail Management, FDDI The agro waste is dried, if necessary, up to 12-15% moisture content in a drier, pulverized to small particle size in a pulverizer and fed to the hopper of the briquetting machinery when the briquettes are extruded continuously which are cut to required length and packed. 1. The first step in Briquetting is to collect a large amount of the material. 2 . Then the material is cut or crushed to make it smaller. 3. Next it is combined with a small amount of water and a substance called a binder. 4. A binder keeps the material from falling apart when the pressure is taken away. Clay, mud, cement and starch are commonly used binders. Biomass Briquette Process

26. Centre For Retail Management, FDDI Right now the central and state governments provide a capital subsidy amounting to 10% to 25% depending on the location of the industry in backward areas. Government provides Incentives are such as Income Tax, Sales Tax, VAT, and Excise Duty. The Pollution Control Board also granted to run the plant without NOC from the board. NGO or nationalized banks are giving priority to finance the project. Biomass Briquette Financial Incentives

27. Centre For Retail Management, FDDI http://en.wikipedia.org/wiki/Briquette http://www.indiaenergyportal.org/subthemes_link.php?text=biomass&themeid=5 http://www.briquettingsystems.com/intro/index.htm http://www.techno-preneur.net/Project-Profiles/Apitc-project/Agro-waste.htm http://komarek.com/eua/process/index.html http://www.eeci.net/archive/biobase/B10434.html http://www.itebe.org/telechargement/revue/Revue9/Revue9UK/UK9page40.pdf http://palmoilis.mpob.gov.my/publications/TOT/TT-330.pdf http://www.kppc.org/KREC/Presentation/6-28-06%20-5-%20Taulbee%20Presentation.pdf http://www.worldcoal.org/pages/content/index.asp?PageID=402 http://www.coal.nic.in/welcome.html http://www.cslforum.org/india.htm http://www.alibaba.com/offerdetail/12846157/Sell_Biomass_Briquetting_Machine.html http://www.legacyfound.org/ http://www.feeco.com/Products/Agglomeration/Briquetting/tabid/50/Default.aspx?gclid=CMbm4IKYqI8CFQsNewodPEc5SA http://www.intracen.org/tradstat/sitc3-3d/ip322.htm http://jkbriquettingplant.com http://www.hedon.info/goto.php/FuelBriquettesFromWastes http://www.sulekhab2b.com/Buy/Search/fuel-briquettes.htm Biomass Briquette References