The document provides details about a proposed energy conservation business, including its project profile, scope, marketing analysis, potential customers, and finances. The business would identify areas for energy savings at industrial customers' facilities by assessing equipment like motors and lights. It aims to capitalize on Pakistan's energy crisis and increasing prices by providing cost-effective conservation solutions.

1. INDUSTRIAL ENERGY CONSERVATION SOLUTIONS
BY
Aadil Naveed
2013(Fall)-MBA E-004
TO
DR. ASIF NAWAZ

2. PROJECT PROFILE

3. PROJECT PROFILE
Product /Services Energy Solutions (Personal Services)
Potential customers Energy Consuming Industries
Deliverables Energy Conservation Potentials
Strategic Partners ABB, WEG, SIEMENS etc.
Contingencies Not frequent
Business Type Small Business (Sole proprietorship)
Planning Requirement Daily basis
Competitive Strategy Cost effectiveness and Quality
Business Emergence Corridor Principle
Field Experience 3 Years in IMEIP US-AID
Team Span 3 to 5 Members

4. PROJECT SCOPE

5. PROJECT SCOPE
Industrial Energy Conservation is the need of
the hour
With increasing energy prices and shortfall we
need to conserve and generate more
The deliverable include the identification of
areas where energy savings are possible
Replacements of old, less efficient motors and
other instruments would be suggested
Saving potentials would be calculated and
discussed with the customers

6. HOW THE IDEA EMERGED ?
Idea Germination
I was doing Energy auditing since last two years
during which the idea emerged
I often thought that there is an empty market
niche which can be exploited
Preparation
I started gathering information which would be
required to start a new business
I gathered knowledge from where ever possible
and help was taken from seniors

7. HOW THE IDEA EMERGED ?
Incubation
During the last few months I saw an increasing
potential for this sort of business
Illumination
I prepared the feasibilities of the idea and the finances
associated with it and it came out to be a good
business venture
Verification
Now I am planning to execute the business plan which
would verify its validity

8. WHAT CREATES THE
MARKET NICHE ?

9. WHAT CREATES THE MARKET NICHE ?
Energy Crisis in the country
Increasing Environmental Problems
Declining Fossil Fuels
Increasing Energy Prices
Energy Efficient Motors
Energy Policies Establishment
VFD Technology Emergence

10. WHAT CREATES THE MARKET NICHE ?
ISO 50001 implementation
US-AID Energy initiative
New Process Designs
Evolution in Lighting Technology
Increasing use of Renewable Energy
Global Warming

11. Energy Crisis in the country
The energy demand is increasing in the country
with every passing day
Due to the lack of planning by the previous
governments Pakistan is facing a serious energy
crisis
Currently Pakistan is facing a shortfall of 4,000 to
5,000 MW
So the need of the hour is that apart from
increasing the energy generation we must also
focus on conserving it

12. The energy prices in the countries have increased
by 100% since 2000

13. ARRIVAL OF NEW TECHNOLOGY
Energy Efficient Motors
New energy efficient motors (IE1, IE2, IE3 and
IE4) are in the markets with IE4 having the
highest efficiency of almost 96%
Evolution in Lighting Technology
The new LVD lights consume 50% less energy
and provide 37 % more luminosity compared
to a normal light in operation

14. EFFICIENCY GRAPH

15. LVD vs. Older Technology

16. ARRIVAL OF NEW TECHNOLOGY
VFD Technology Emergence
Employing a VFD and reducing the RPM of a
motor can easily result into about 20% energy
saving
Previously dampers have been employed which
does not reduce the energy consumption but in
fact dampens the energy delivered
10 reduction in RPM means 22% reduction in
energy consumption and 20% reduction in RPM
means 44% reduction

17. US-AID INITIATIVE
US-AID was providing 50% subsidy on the
purchase of new motors and VFDs in their IMEIP
project
Old inefficient motors were replaced by New high
efficiency motors and new VFDs were installed to
increase the energy savings
The 3rd phase and the biggest of this project is
due within a year or so
Almost 70 industries all over the Pakistan
benefitted from this project and 90% of them
were highly satisfied with the energy savings

18. MARKET ANALYSIS

19. 5 C
Customers
Energy Consuming Industries
Company
IECoS Pvt. Ltd.
Competitors
Few Individuals
Collaboration
ABB and WEG Pakistan
Context
Energy Conservation is the need of the hour with the
increasing energy prices and shortfall.

20. 4 P
Product/Services
Energy Services
Promotion
Website, Pamphlets and Brochure
Place
Industries all over the Pakistan
Pricing
Industries would be charged Rs. 20 per KW

21. STRENGTHS ANALYSIS
 During the last 2 to 3 years I have been auditing the
industries which are ready for investment in the energy
sector
 These are my ready potential customers and I have all the
contact details available with me
 I have the N.P.O. auditor certificate which will be helping me
in training the junior engineers and in gaining the contracts
 The vendor companies (ABB, WEG, SIEMENS etc) are my
natural alliances and will be doing the marketing for me
 The technologies are calling for the change and it is easy to
convince the clients regarding the saving potentials

22. MARKETING ANALYSIS
 As the 3rd phase of US-AID IMEIP project is due within
six months and the industries are interested in seeking
the potential replacement
We would be providing them with saving potentials
before the start of the 3rd phase so they can place their
orders accordingly
There are almost 58 potential customers which are in
contact with me and are willing to invest in energy
sector
Industries which missed the chance of getting registered
in the previous two phases are lurking for the 3rd phase
and would be easy to convince

23. MARKETING
An attractive website would be made and emails
regarding services would be forwarded to the
industries
Energy Conservation Pamphlets would be made
and mailed
Motors, VFDs and Lighting vendors would be
contacted for support
Engineers in their spare time would be visiting
the industries and giving presentations to high
officials

24. SWOT Analysis

25. SWOT Analysis
STRENGTHS
Vendor’s Interest
3rd IMEIP US-AID Phase
Negligible Competition
3 years of field experience
WEAKNESSES
No data for help available
Low competition, Low Motivation
Lack of Awareness

26. SWOT Analysis
Opportunities
Solar Panels for Industries
Waste Heat Exchangers
Machine Spare parts Services
Threats
GIZ, NEC starts similar services
Customers low motivation
No energy left to conserve

27. GROWTH STAGES

28. GROWTH STAGES
PRE-START UP GROWTH
The instruments required would be purchase from
Makkays Pvt. Ltd.
The Engineers would be hired (1-3 years experienced)
and trained for EA
Marketing would be done by the website and
Pamphlets
START –UP GROWTH
During the initial phase maximum audits would be
done and reports would be then compiled
Energy audit results would be verified with the
customers

29. GROWTH STAGES
 EARLY GROWTH
 Rapid response is expected so new teams can be
hired on contract and project basis
 Competitors may arrive, cost effectiveness would
be the weapon to use
 LATER GROWTH
 Industrial instrument installation services
 Erection support would be provided to industries
 Solar system installation is also a possibility

30. POTENTIAL CUSTOMERS

31. POTENTIAL CUSTOMERS
Sr. No. Facility Name Address Disco District
1
Sapphire Finishing
Mills Limited
Sapphire Finishing
Mills Ltd. 3.5 Km,
Raiwind Manga Road,
Raiwind
LESCO Kasur
2
Crescent Steel And
Allied Products Ltd.
A/25 S.I.T.E Nooriabad.
District Jam Shoro
Sindh, Pakistan
HESCO Jamshoro
3 Al Noor Sugar Mills
Shah Pur Jaharian
Taulaka, Doulat Pur
District Benazirabad
Sindh Pakistan Sukhar
SEPCO Benazirabad
4
Thatta Cement
Company Limited
Makli Ghulam Ullah
Road District Thatta,
Sindh
HESCO Thatta
5 Pak-Arab Fertilizer
Disposal Workshop Pak
Arab Fartilizer Kwl
Road Khad Factory
MEPCO Multan
6 Nestle Pakistan Limited
Nestle Pakistan Limited,
Sheikhupura Road,
Sheikhupura.
LESCO Sheikhupura
7
Dalda Foods Private
Limited
F 33 Site Hub River
Road Karachi
KESC Karachi

32. 8
Unilever Pakistan
Limited.
Unilever Pakistan
Limited,Tea
Factory,Chak # 88-A 10
R,Khanewal
MEPCO Khanewal
9
Thal Limited (Jute
Division)
Dg Khan Road
Muzafargarh MEPCO Muzaffargarh
10
Hazara Phosphate
Fertilizer Pvt.Ltd
Hazara Phosphate (Pvt)
Ltd Hattar Road,
Haripur.
PESCO Haripur
11 Ici Soda Ash Khewra
Ici Soda Ash Plant
Khewra IESCO Jhelum
12
Maple Leaf Cement
Factory Ltd.
Maple Leaf Cement
Factory Ltd.
Iskandarabad, Mianwali. FESCO Mianwali
13
Anjum Textile Mills
(Private) Limited
42 Km Sheikhupura
Road Faisalabad FESCO Faisalabad
14 Bilal Fibres Mills
38-Km Sheikhupura
Road Faisalabad FESCO Faisalabad
15
Al-Abbas Cement
Industries Limited
Nooriabad Industrial
Area, Kalo Koher District
Jamshoroo Sindh HESCO Jamshoro

33. ENRGY AUDITING TEAM

34. ENERGY AUDITING TEAM
Team Lead
Environmental
Analyst
Electrical
Engineer
Mechanical
Engineer
Chemical
Engineer

35. WBS OF PROJECT
Every team member is expected to work
individually
All the data collection would be done with the
help of the industrial representative
Data collected would be shared with the
customer before analysis
The final analysis and report compilation would
be done by the Team Lead
Final audit results would then be submitted to
the esteemed customer in hard form

36. ENRGY AUDITING TEAM
Electrical Engineer
Motor Sizing
Motor Drives
Lightning
HVAC
Mechanical Engineer
 Machinery Maintenance
 Compressors
 Thermography

37. ENRGY AUDITING TEAM
Chemical Engineer
 Carbon Emission
 Waste Heat
 Supply &Waste Water
Environmental Engineer
 Health and balance of Environment
 Energy Management Standards
 Carbon Footprints

39. FINANCIAL DETAILS

40. FINANCIAL DETAILS
Industrial
Equipment
Energy
Analyzer
Thermal
Analyzer
Tachometer Vibrometer
Funds Allocated = Rs. 1000, 000/-

41. FINANCIAL DETAILS
Office
Equipment
Furniture
& AC etc.
Laptops
Stationary &
Advertising
Printer and
Scanner
Funds Allocated = Rs. 1200, 000/-

42. OFFICE RENT AND EXPENSES
An amount of Rs. 500, 000/- would be submitted
as advance for the rent place
Monthly Rent = Rs. 80, 000/-
Office Expenses = Rs. 70, 000/- per month
(Photocopies + Print + Office Boy Pay + Tea etc.)
Advertisement = Rs. 20, 000/- per month
Total Office Expenses = Rs. 170, 000/-
FINANCIAL DETAILS

43. FINANCIAL DETAILS
TEAM SALARIES
I myself would be working as the team lead and
engineer who would be experienced up to 2 years
would be hired and trained for their respective roles
Team Lead Rs. 100, 000/-
Electrical Engineer Rs. 50, 000/-
Mechanical Engineer Rs. 50, 000/-
Chemical Engineer Rs. 50, 000/-
Total Salaries Rs. 250, 000/-

44. FINANCIAL DETAILS
 TRAVELLING EXPENSES
 Car would be taken on rent form the
Lahore Rental Company (Mobile: 0321 90 999 09) from Johar Town
branch Lahore
 The rates were taken from the company for the calculation purpose and
they are detailed below
 Vehicle Charges Rs. 3, 600 per day + Distance dependent cost
 Car Rent (4 days per visit) Rs. 3, 600*4 = Rs. 14, 400/-
(For one visit)
 Distance dependent cost Rs. 17 per KM
 Total Visits per month 5
 Average kilometers travelled 1000 KM
(Per Visit)
 Per month distance expenses 1000*5*17 = Rs. 85, 000/-
 Total Travelling Expenses 85, 000 + (14, 400*5) = Rs. 157, 000/-
(Per Month)

45. FINANCIAL DETAILS
 AUDIT FEE AND PROFIT
 The audit fee would be charged at per watt basis. In other words we
would be charging the audit fee according to the watts audited in the
industry. Calculation would be done as:
 Average sanction load (From 58 industries record) = 8580 KW
 Total monthly expenses = Rs. 577, 000/-
 At ~48.7 % profit income should be = Rs. 858, 000
 Total KW audited per month (5 audits per month) = 8580*5 = 42900
KW
 So charges for the audit comes out to be Rs. 20 per KW
 This will ensure a profit of almost 48.7 % on the expenses which gives
us a profit of
858, 000- 577, 000 = Rs. 281, 000 per month given that the team
perform 5 audits per month irrespective of the type of the industry.

46. INCOME STATEMENT
Initial Investment = Rs. 2700, 000/-
Monthly Expenses = Rs. 577, 000/-
Charges = Rs. 20 per KW
Total Monthly Earning = Rs. 858, 000/-
Profit = 858, 000- 577, 000 = Rs. 281, 000/-
Profit on Investment ~ 48.7 %
Payback Period = 2700, 000/ 281, 000
= 9.6 months

48. EPILOGUE

49. EPILOGUE
With the reducing fossil fuels this business
plan is the need of the hour
Reduced energy usage will reduce the bills
and environmental pollution as well
Energy Efficiency Program can be expanded to
other disciplines like building audits, home
energy audits
This conserved energy can be used some
where else
1 unit saved= 2 units produced

50. REFRENCES
http://sharifinternational.net/energy-efficient-
lamps/lvd-lamps-comparison/
http://www.aps-
solutionsforbusiness.com/ProjectCenter/Portals/54/M
otorsFactSheet_WEB090908.pdf
http://www.plantservices.com/articles/2010/06vfdssav
eenergy/?start=1
http://www.iso.org/iso/home/standards/management
-standards/iso50001.htm
http://www.copper.org/environment/sustainable-
energy/electric-motors/education/motor_text.html

51. THANK YOU FOR LISTENING