Perennial Power is establishing a biogas production plant in Faisalabad, Pakistan to provide renewable energy from biomass and other organic waste. The political and economic environment in Pakistan is favorable for renewable energy due to the severe energy crisis. However, high international oil prices pose economic challenges. Socially, biogas can empower women by reducing their workload in collecting biomass fuel and improving health. The company aims to introduce cost-effective renewable energy solutions while contributing positively to the environment and society.

1. BUSINESS PLAN
BIO GAS
PARTICIPENTS:-
MARWA SHIEKH 2009-ag-1028
SHER AFGAN CHEEMA 2009-ag-1376
HAMZA ZAHEER 2009-ag-1375
NUMERA ALI 2009-ag-992
HIRA AMJAD 2009-ag-1275

2. Table of Contents
1... Executive summary----------------------------------------------------------------- 1 & 2
3.1 Company profile---------------------------------------------------------- 3
3.2 Products and Services -------------------------------------------------------------3
3.3 Size and form of Business --------------------------------------------------------3
3.4 Office Equipment and Personnel-------------------------------------------------3
3.5 The Entrepreneurs------------------------------------------------------------------3
4.1 Vision ------------------------------------------------------------------------------4
4.2 Mission-------------------------------------------------------------------------------4
4.3 Market need--------------------------------------------------------------------------4
4.4 The problem----------------------------------------------------------------------- 4
5. “Situation analysis”-------------------------------------------------- 5
5.1
POLITICAL-------------------------------------------------------------------------5
5.2
ECONOMICAL---------------------------------------------------------------------5
6.1 Social------------------------------------------------------------------------------ 6
6.2 Technological-------------------------------------------------------------6
7. “Industry Analysis”--------------------------------------------------------------7
7.1 Energy Supply & Demand------------------------------------------------------------7
8.1 Competition-----------------------------------------------------------------------------8
8.2 Current Trends----------------------------------------------------------------- 8
8.3 Environment------------------------------------------------------------------- 8
9. SWOT ANALYSIS---------------------------------------------------------------9
9.1 Strengths------------------------------------------------------------9
9.2 Weaknesses--------------------------------------------------------9
10.1 Opportunities-----------------------------------------------------------------10
10.2 Threats-----------------------------------------------------------10
10.3 Segmentation & targeting--------------------------------------------------10
11.1 POSITIONING---------------------------------------------------------------11
11.2 Slogan-------------------------------------------------------------11

3. 11.3 Service differentiation------------------------------------------11
11.4 Image differentiation--------------------------------------------11
11.5 4P’s--------------------------------------------------------------11
11.6 Product---------------------------------------------------------------------11
11.7 Level of products---------------------------------------------------------11
11.8 Price------------------------------------------------------------------------11
11.9 Placement------------------------------------------------------------------11
12.1 Promotional Mix-------------------------------------------------------------12
12.2 Marketing Strategy------------------------------------------------------12
12.3 Marketing Objectives---------------------------------------------------12
12.4 Production Plan Biogas generations------------------------------12
12.5 General factors which influence biogas production-------------------12
13. BIO GAS Generation Process-----------------------------------------13
14. Management plan--------------------------------------------------14
14.1 Form of Business--------------------------------------------------------14
14.2 Identification of the members------------------------------------------14
14.3 Board of Directors-------------------------------------------------------14
15. `Roles and Responsibilities of the Members------------------------------15
16.1 REWARD STRUCTURE--------------------------------------------------16
16.1.1Financial Rewards--------------------------------------------------------------------16
16.1.2 Others Rewards-----------------------------------------------------------------------16
16.1.3 Working Hours------------------------------------------------------------------------16
16.2 Lunch Hours-----------------------------------------------------------------------------16
16.3 Leave Schedule-------------------------------------------------------------------------16
16.4 Succession Planning--------------------------------------------------------------------16
16.5 Training----------------------------------------------------------------------------------16
17. Financial plan------------------------------------------------------------------17
18. Pro Forma Income Statement-------------------------------------------------18
19.1 Pro forma Balance sheet--------------------------------------------------------------------19
20. “Risk Assessment”-------------------------------------------------20
20.1 Level of Risks---------------------------------------------------------20
20.2 Product and Execution

4. Risk-------------------------------------------------------20
20.3 Financial and control Risk---------------------------------------------------------20
20.4 CONCLUSION-------------------------------------------------------20
“Executive Summary”
Perennial Power is a Faisalabad based startup company dedicated to providing a cost effective
renewable energy source “Biogas” in the form of different products, categorized according to
different consumption patterns that will be extremely beneficial for our target customers in the face
of this severe energy crisis in the country. The product offerings of the company include Biogas
for households, Electricity for industry and Biogas for transportation. The company is also aimed
at providing consultancy services regarding the integrated energy solutions by pursuing the
strategy of continued Research and Development.
The company was formed in 2008 and currently has 7 members. The company’s name truly
reflects the nature of the business, which is to provide the energy source that is never ending. The
company’s management team consists of the MBA students having specializations in the fields of
Human Resource Management, Finance and Management Information System.
3.1The main reasons for the initiative taken by the company are to capitalize on the opportunity of
providing alternative energy sources to the consumers, the recognition of the fact that biogas
technology is progressive and the demographic changes in the consumer demands to use more cost
effective energy intensive products. 3.2By pursuing this business the company is aimed to
introduce the solutions for reducing dependence on the energy imports and thus contributing the
economy in a very positive way, while at the same time to further our efforts for making
environment friendly products and having a very beneficial output from the waste. So, the
company is pursuing the project which is not only socially acceptable but at the same quite
profitable as shown by its economic feasibility.
The initial capital required for the establishment and operations of the company is Rs. 31 million.
In the first full year of operation, the company has estimated to reach Rs.75 million of sales. The
analysts project that the sales will grow to 35% a year within the next 3 years, with the gross profit
margin of 45%. The payback period of the project is four years.
The company’s values include quality, trust, respect for teammates and betterment of environment.
The company intends to become a pioneer, for producing biogas on the commercial level in
Pakistan, by introducing and expanding its diversified products and geographical coverage with
the passage of time.
The perennial power company organization is based on modern management structure comprises
on two committees EXCOM and MANCOM. EXCOM (Executive committee) comprises on head
of the departments and MANCON (Management committee) comprises on functional management
who are looking day to day activities of the organization. The company is applying the HR
practices for the betterments of its employees.
The target market for Perennial Power Company is considered to be the villages closer to the
company’s production plant at the initial level. In addition to this the company’s major customers
include WAPDA and other factories located near the production site. Currently, the company is
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5. not expected to face any kind of direct competition for biogas production, at least at the
commercial level. For the future, the company believes that it would be able to compete effectively
because of its high quality products, dedicated workforce, effective planning and continued R&D.
To increase the public awareness about the venture, the company has decided to use word of
mouth, education sponsorship programs and radio advertising as the prime sources.
The company, at the initial level, plans to use 6,500 cubic meters of animal manure and 4,200
cubic meters water as the input. After producing the required amount of biogas from this input the
remainder or bio slurry can be used as the fertilizer, making this process even more beneficial and
profitable because this can be sold at the reasonable cost, which then can be utilized for covering
the input cost of Perennial Power Company.
For the efficiency and timeliness of its operations while at the same time for ensuring the
appropriate control over the production process, the company is aimed at using Information
Technology as a competitive edge. In this regard, it has decided to use customized software to
control the whole production process in the highly effective and efficient manner with the great
accuracy.
In addition to this, the internal computer network is established for the close coordination
between the production and the technical staff while at the same time the external networks and
internet would be utilized, especially by R&D personnel, in order to keep themselves current
about the latest trends and developments in the environment and provide their recommendations
and suggestions to the top management and operational staff accordingly. The R&D department
is also in close collaboration with Pakistan Council of Renewable Energy Technologies (PCRET)
for having the information about the latest research and development being done in the sector of
alternative and cost-effective methods of producing biogas.
The physical plant of the company for the biogas production is installed at the Burleb Sewage
Canal, Sargodha Road, Faisalabad. The total area covered by this plant installation is 8 acres and
is acquired at the lease of per acre per annum. The machinery and equipment required for the
process include Digesters, Gas chamber, 15 Turbines, Pressure Control System, Cylindrical
Purification System, Bacteria Checking Machines, Container Trucks, Process Control System.
With reference to company’s manufacturing facility the whole gas production process is done by
the Perennial Power Company and no part of the production is subcontracted to some other
entity.
The company receives the input for the biogas production process from Adil Dairy Farm, Shoukat
Dairy Farm, and 3000 small farmers, Vegetable Market, Dead Animals, Sewage Lines and
Bhains Colony.
The company has an initial risk of financing and product execution while other risks are not
much concern to the greater extent. The company is doing business in a suitable environment
where the chances of success are very high.
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6. 3.1 Company profile
Perennial Power Company, will be located in Faisalabad, is basically a startup venture for producing
biogas at the commercial level taking biomass and other manure as the input and at the same time
providing integrated energy solutions to the end consumers and society in a very economical and
environment friendly way. The objective of this company is to provide biogas energy to its customers at the
lower cost than other renewable energy resources while at the same time to preserve our environment by
recycling the waste to produce beneficial products.
Name of product: GREEN AND CLEAN ENERGY
Name of company: PERENNIAL POWER COMPANY
Address of company: NISHATABAD ROAD WEST FAISALABAD
3.2 Products and Services:-
The products and services that will be offered are categorized according to different segments of
consumptions consisting of;
• Industry,
• household
• Transportation.
The offerings in this regard will include biogas for household use as well provide to industry at initial stage,
bio fuel for the vehicles named as Bio CNG cylinders, bio energy for electricity generation and the
consultancy services for house hold energy solutions.
3.3 Size and form of Business:-
The key factor determining the success of the business is that it is going to operate in the sector where the
demand of the energy is considered to be ever increasing and everlasting, which is also depicted by the
name of the company.
3.4 Office Equipment and Personnel:-
The company has more than 30 employees working in three shifts; whole process of production is carried
through the support of technology.
3.5 The Entrepreneurs:-
The company’s name truly reflects the nature of the business, which is to provide the energy source that is
never ending. The company’s management team consists of the MBA students having specializations in the
fields of Marketing, Human Resource Management, Finance and Management Information System.
Website: www. Perennial power.com
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7. 4.1 Vision:-
“Changing life styles with economic and unique available resources”
4.2 Mission:-
“Our mission is to provide integrated energy solutions to our customers in an
environmentally friendly and socially responsible manner. In other words, we will strive
hard to provide power in a way that is sustainable in the long term. We believe it is
essential not only to make profits but also to care about people and protect the
environment. We will lead by example through a commitment that empowers our
customers ensuring the excellence at all levels of our operations, performance,
products and services.Simultaneously,actively contribute towards welfare of society and
social uplift of the under privileged section of the community ”
4.3 Market need:-
Pakistan is one of the developing countries facing a huge demand in the energy sector due to the
trends of improving lifestyles and growing population. However, sufficient number of industries
can’t be set up especially in rural areas so far due to scarcity of energy supply.
Security and affordability of energy supplies are key inputs to ensure sustainable development.
Equitable access to energy constitutes a basic element of effort to combat poverty and sustained
economic activity. Pakistan has predominantly rural society where biomass fuel is the major
source for cooking and rural women are primarily involved in biomass collection and use.
4.4 The problem:-
Excessive use of biomass energy is not only a threat to the environment due to the high use of
forest resources, but also results in a drop off in the agricultural productivity due to the diversion
of agricultural residues and animal waste from farms to fireplace.
This situation is worsened by the low level efficiency of these fuels, which are a health hazard
due to increased air population, particularly to rural women who are the managers, producers and
users of energy at the household level.
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8. 5. “Situation analysis of “Perennial Power Company”
“Environmental analysis”
5.1 Political:-
Presently, the political scenario of Pakistan is quite favorable for using renewable energy resource
in order to eliminate the severe energy crisis in Pakistan. One of the major problems facing
the new government, the energy crisis, is intense, costly and multidimensional. The
infuriating electricity and gas disruptions and soaring fuel prices in turn pushing the cost of
living have made life very difficult for the people of Pakistan. The even before it took office the
new government was greeted with two jumps in fuel prices, accounting for the 15% in two weeks.
Meanwhile crude oil prices have been registering all-time-highs, shooting 40% in the past year.
The endless reality is that this global spike will somehow have to be accommodated in the energy
prices in Pakistan.
In this crucial situation, the government now understands that, in order to tackle the existing
energy crisis and ensure a prosperous energy future, the backbone of the future energy
policies would have to be reliance on domestic resources (Biogas, Hydropower, Solar and Wind
energy) as well as the energy conservation. In this regard, government made a policy
commitment to encourage the biogas installation plants in the country along with the 75% interest
subsidy on loan from the federal government of Pakistan.
5.2 Economical:-
Energy sector is one the most important sectors driving the economy of Pakistan and that’s why
some of the latest fluctuations due to the energy crisis in Pakistan are having an adverse impact
on the economy of Pakistan coupled with the widening gap between demand and supply in
this particular sector.
A huge shock for the present economic condition is that international oil prices have not
only broken all records and are touching the new heights. Moreover, speculators all around the
world expect oil prices to touch $110 per barrel in the medium term. With concerns over many
issues oil prices don’t see any other way but to shoot upwards. The macro –economic
implications of supply shock induced energy crisis are large, because energy is the resource used
to exploit all other resources. Pakistan’s Medium Term Development Framework (MTDF)
2005-2010 sets out a challenging program to achieve 8% annual growth in GDP. Associated
growth in energy consumption is forecasted at 12% a year and this expected growth would
have drastic pressure on all sectors of Pakistan’s primary energy supplies.
Pakistan has a deficit of fossils or hydrocarbon sources of energy to cover up the deficit; it
depends upon importing crude oil at an enormous cost from its meager forex reserves. The need
of crude oil is on an increase because of an improved lifestyle, which has necessitated the use of
vehicles are cars for transportation. Imports of crude oil at about $110 per barrel increased the
trade deficit and the current account deficit. In addition to this, being an energy importer, the
shooting up dollar value is also posing a huge threat to the economy. In view of Pakistan’s
meager resources of fossil fuels, the dependence on imported petroleum is expected to increase,
therefore putting the economy under great strain. In this way, an alternate source like nuclear,
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9. 1
solar, wind and biomass energy would have to be explored. But it should be kept in close
consideration of the environment degradation problems and processes, which are environment
friendly, should be adopted.
6.1 Social:-
Pakistan has predominantly rural society where biomass fuel is the major source for cooking and
rural women are primarily involved in biomass collection and use. Biogas energy has potential to
save the metabolic energy and the time of women, which could be used for other productive
activities that enable women to be socially, psychologically and politically empowered. Their
livelihoods are threatened due to their heavy workloads and deteriorating health conditions in the
absence of good nutrition and health services.
There are alternative energy resources (especially biogas) that offer significant potential in terms
of reducing women drudgery and improving health conditions, allowing rural women to have
enough time to be involved in income-generating, social and community development activities
for their self-enhancement and empowerment.
Often the beliefs, prejudices, habits, etc, prevailing in the society pose problems for promotion of
the biogas technology .Factors such as educational background and income of the beneficiaries
may also affect the speed of BT adoption.
This has to be tackled in two ways: (1) We’ve to try to introduce the plant models most suited for
the area and (2) devise suitable training of extension workers to enable them to take the message
of BT to the people.
6.2 Technological:-
Pakistan Council of Renewable Energy Technologies (PCRET) has been recently established by
merging National Institute of Silicon Technology (NIST) and Pakistan Council for Appropriate
Technologies (PCAT). PCRET has been assigned the responsibility of Research and
Development dissemination and provides trainings to promote renewable energy technologies in
the country and their main areas of functions include providing all the information and technical
assistance regarding biogas plants installations in Pakistan.
The technology change rates, with respect to biogas plants, is non-existent and therefore there is
no such problem fostered in the installation of the biogas plants in the country as well as much of
the technological help and incentives are being provided by the PCRET. In addition to this,
leaflets, calendars, posters and manuals written in the local language can be effectively utilized
for creating the awareness regarding the benefits and uses of biogas.
Pakistan being agriculture based, breeds sufficient live stock to produce enough animal waste for
the production of biogas. Currently, all such animal waste is burned in the dry form as the
domestic source of energy. The same can be used for producing biogas on commercial bases with
effective utilization of technology. There is quite a potential for using biogas technology as rural
energy though out the country by network of community biogas plants.
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10. 7. “Industry Analysis”
Pakistan has one of the world’s fastest growing economies and energy resources development
will be essential to increase its ability to sustain the high growth rates through the 1990s.Three
critical characteristics must be considered in analyzing Pakistan’s energy sector.
• A complex range of energy resources is available and each plays a different role in
meeting the national needs.
• The gap between domestic energy supply and demand is widening because of inadequate
production, poor transmission and distribution system and inefficient energy use.
• Exploiting the energy resources creates the environmental hazards that threaten the long-
term development prospects and social welfare.
Gaseous fuels like Natural gas; Biogas has been explored as an alternative to petrol and diesel to
lighten the import burden. Natural gas in compressed form is already being used successfully as
vehicle fuel. Pakistan’s population is growing at a very rapid pace and more than half of this
population lives in rural areas, therefore the environmental issues like greenhouse effect and
correct waste disposal methods as well as providing energy for all the people in rural areas is
gaining much attention in the current scenario.
7.1 Energy Supply & Demand:-
Pakistan’s recent economic acceleration together with rapid rates of population growth is having
a significant impact on the country’s energy supply and demand balances. The current situation in
the Pakistan’s energy sector is that the important energy resources have been depleted and
whatever resources are available are simply too expensive to buy or already acquired by the
countries which had planned and acted long time ago.
The current situation in Pakistan is that it is producing 64,000 bbl/d and has ambitious plans to
increase its current output to reach 100,000 bbl/d in 2010. According to Oil and Gas Journal
(OGJ), Pakistan had 28.8 million barrels of proven conventional oil reserves as of 1 Jan 2005.
Consumption of petroleum products is estimated at 351.4 thousands bbl/d. Today, the primary
energy supplies are not enough to meet even the present demand. So, Pakistan, like other
developing countries of the region, is facing is facing the serious challenge of energy deficit.
There is enough livestock for producing biogas up to 16 million cubic meters a day and it can be
very effectively used as fuel. Sector wise consumption of the Natural gas is given as below:
Sector Natural gas
consumption
Power Sector 35.4%
Fertilizer 23.4%
Industrial 18.9%
Household 17.6%
Commercial 2.8%
Cement 2.5%
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11. 8.1 Competition:-
On the commercial level production of biogas in the country there is no competition at all in the
market. There are some of the biogas production projects already running but they all are on the
very small-scale level. So, Perennial Power Company would not face any kind of direct
competition in the commercial sector. The indirect competition in the energy sector is being
fostered by the other alternative renewable energy resources including natural gas, firewood,
wind energy, solar energy, and coal and petroleum products. But due to its cost-effective and
environment friendly nature, biogas plant at the commercial level is going to have a firm standing
in the presence of this indirect competition.
8.2 Current Trends:-
The following factors are contributing to the sharply rising demand for the conventional energy
supplies in Pakistan:
• Industrialization.
• Urbanization.
• Population growth.
• Shift in consumer demands towards energy intensive products.
8.3 Environment:-
The Govt. of Pakistan is attempting to raise the living standards of its citizens and has meant that
the economical development has largely taken precedence over environmental issues. Unchecked
use of hazardous chemicals, vehicle emissions and industrial activity has contributed to a number
of environmental and a health hazard; chief among them is water pollution. Much of the country
suffers from a lack of healthy and clean drinking water due to industrial waste and agricultural
runoff that contaminates drinking water supplies.
The overall impact of the biogas technology in terms of environmental conservation is
considerably beneficial as the process provides an environmentally sound means of managing
animal and plant wastes. An important advantage of the biogas programme is that it results in
considerable reduction in fuel wood demand especially in the rural areas. The substitution of fuel
wood by biogas leads to three main benefits:
• Firstly, it slows down the deforestation trend, thus achieving numerous environmental
benefits.
• Secondly, it generates less air pollution by the combustion of biogas instead of wood or
animal dung.
• Finally, we get natural fertilizer (manure) from biogas sludge, which is why biogas offers
a safe and clean source of alternate energy.
8.4 Availability of Biomass:-
Availability of Biomass in Pakistan in 50,000 tons garbage collected in the major cities, millions
of gallons of wastewater, millions of cotton stalks and rice husk etc.It is very economical and
8

12. friendly way of disposing off the municipal waste that is collected in tons every day in the big
cities but unfortunately no efforts have been made in this particular direction in Pakistan.
9. SWOT ANALYSIS
9.1 Strengths:- 9.2 Weaknesses:
• Low price • Product rate is low
• Environment Friendly • No more outlets
• Initiative step for alternative energy • Expensive generators for
• Qualified management electricity
• Government and Public Support • Special technical staff
• No complexities in production of Biogas • Financial constraints
• Agriculture support
• No harmful material waste
• No pollution
• Ozone Friendly
• Use of Animal Wastage
9

13. 10.1 Opportunities:-
• Being Agrarian country, abundant ingredients for biogas.
• Kisan Dost Lease Finance Facility available for the installation of biogas plant.
• Less labor than tree felling.
• Economically feasible and socially acceptable concept.
• Huge potential of around 5 million houses.
• Great backup from Biogas Support Program.
10.2 Threats:-
• Fierce competition with gas grid extensions.
• Antibiotics used in the feed of animals can cause difficulties in production.
• Forest areas in Pakistan hardly serve as the carbon sink.
10.3 Segmentation & targeting:-
GEOGRAPHIC
World region South Asia
Country Pakistan
Cities All major cities of Punjab
Climate Humid climate
Density Urban and rural
DEMOGRAPHIC
Age Applicable in every age group
Gender Male, female
Family size 1-2,3-4,5 plus
Family life cycle Married, Unmarried
Income Rs.5000 plus
Occupation From lower to upper class
Race Asian
PSYCHOGRAPHIC
Social class Lower class to upper class.
Lifestyle Actualizes,fulfilled,believers,achievers,strivers,
Experience’s makers and strugglers
BEHAVIOURAL
Benefits Cheap,24/7availability,
User status First time user
Loyalty status Optimistic

14. 11.1 POSITIONING:-
Transformation of useless wastage into cheap and effective energy…!
10
11.2 Slogan:-
“Defining the Future”
11.3 Service differentiation:
Services provided by our specialist consultants are added benefit of buying product from the
distributors…!
11.4 Image differentiation:
Brand’s innovative name, logo and symbol are its differentiation features.
11.5 4P’s
11.6 Product:-
Our basic & innovative product bio gas…!
11.7 Level of products:-
Core Benefits Cheap energy
Basic product Bio gas
Augmented Product Consultancy and after sales services like
replacement of cylinders
Potential Product Different sizes of cylinders will be available
in future
11.8 Price:
Presently PPC is following brand pricing. Our per unit price will be 8.05. Our whole promotion is
based upon our price strategy. We have decided to compete by our low price. It will increase our
production and sale and ultimately increase our revenues.
For Biogas Cylinders and Electricity we have competitive prices. For these two products we
have “cost plus profit margin” model. We will add 25% profit margin in cost of these two
products. We will offer Biogas based CNG at 25% less price in relation to LPG prices prevailing
in the market.
11.9 Placement:-
Placement is important factor; we will use vehicles to deliver the Biogas in Cylinders form to the
end consumers. It includes all the company’s activities which make the product available to the
11

15. market. We will provide Biogas Electricity to WAPDA from our production plant. We will
provide Biogas to nearly located industries through the pipeline.
12.1 Promotional Mix:
Company is following four tools of promotional mix
It is our goal to spread information “Biogas for better Life” in depth of customer’s mind. And
we will use different methods:
• Banners
• Personal Selling
• Awareness programs
• Events
• Radio
• Public Relations (Words of Mouth)
12.2 Marketing Strategy
12.3 Marketing Objectives:-
• Customer value and satisfaction
• Creating strong position
• Creating strong distribution channel
• To achieve better market share
• Try to increase growth rate
• To provide high quality
12.4 Production Plan Biogas generation
Biogas develops through anaerobic fermentation. During this process, organic substances are
decomposed by microorganisms. The substances added to the system produce the biogas in an
oxygen-free environment. In the first step, the organic substances are divided into molecular
components (sugar, amino acids, glycerin and fatty acids). Microorganisms convert these
intermediate products into hydrogen and carbon dioxide, which are then transformed into
methane and water according to the
Equation: CO2 + 4H2 ----> CH4 + 2H2O
12.5 General factors which influence biogas production:
The production of biogas is a natural process that functions in suited facilities.
The following factors must be considered during biogas production:
• Organic substrates must be able to be biologically decomposed by microorganisms.
• The substrate should contain only a minimum of microbiological restrictors.
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16. • The temperature during the decomposing process must be within a certain range (35° to
55°C).
• The pH-value should range from 6 to 8 the fermentation must take place in an area sealed
off from air and light.
• The fermentation tank must be mixed at regular intervals.
BIO GAS Generation Process
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17. 14. Management plan
14.1 Form of Business:-
The form of business is private limited and established under Companies Ordinance 1984. There
are total seven (7) members in this organization and actively participating in the organizations
activities.
14.2 Identification of the members:-
This business is private limited and all the members have contributed equal share of amount. All
the members have equal shares in the company and are responsible for their respective activities
as they are performing actively in the organization. The term of membership is on the basis of
equal share of profits & losses and rewards and bonus are on the basis of the achievement in the
respective area of responsibility.
14.3 Board of Directors:-
The members are also the members of the board of director. The board of director is comprised of
one chairman who is selected by the members or board members and THREE board members.
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18. 15. `Roles and Responsibilities of the Members:
The responsibilities of directors may include:-
• Review of operating and capital budget.
• Development of network for the efficient working of the organization.
• Resolving conflicts among all the managerial and departmental activities.
• Ensuring that the assets are in proper and efficient use of their own.
• Major task is decision making.
DESIGNATION (CHAIRMAN)
KEY RESPONSIBITIES:
Smooth functioning of whole organizational departments, to overlook complete activities
of the organization, build long term and short term strategies and policies.
Salary: Rs. 70,000/-
DESIGNATION (HEAD OF MARKET&CONSULTANCY)
KEY RESPONSIBITIES:
To handle sales, forecast sales, promotions and handle the service area of company which is
consultancy for other biogas plants.
Salary Rs.30, 500/-
DESIGNATION (HEAD OF R & D)
KEY RESPONSIBITIES:
To understand the complexities of the biogas plant, find new better and efficient ways to produce
gas and electricity, new and better plant designs for the further extension of the plant, to find
better resources or raw material for quick and more production of biogas, give advices for new
product introduction according to the better research and results.
Salary Rs.45, 950/-
DESIGNATION (HEAD OF TECHNICAL FACILITY)
KEY RESPONSIBITIES:
To see the technicalities of the biogas plant, provide the engineers and technical staff the required
type of material and help, technical changes in the biogas plant, interval inspection of the plant.
Salary Rs.40, 000/-
DESIGNATION (HEAD OF PRDUCTION AND OPERATIONS)
KEY RESPONSIBITIES:
Provide production facilities, over look the purchases and the raw material conditions; see the
difficulties of distribution channels and the better resource for raw material, handle the activities
of subordinates, provide them effective advices about the production and operation of the
complete plant.
Salary Rs.15, 000/-
DESIGNATION (HEAD OF FINANCE AND CONTROL)
KEY RESPONSIBITIES:
Look at the financial position, activities and resources of the company, handle the books of
accounts of the company, perform internal audit and annual external audit of the company, look
at resources from finance is available, give advices according to the financial position to the
chairman and the for further strategies of development or product diversification.
Salary Rs.30.000/-
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19. DESIGNATION (HEAD OF HR MGT.)
KEY RESPONSIBITIES:
Handle the organizations human resource activities like recruiting, selection, orientation,
performance appraisals, motivation, rewards and benefits to the employees, governmental
obligations and regulations about the bio hazard and employees, employee safety and health
issues. Check the balance of the employees in the organization for excessive and under employed
workers.
Salary Rs. 20,000/-
Key responsibilities of team of R&D
In research and development, technicians usually work in laboratories testing mechanical,
electrical, chemical, pneumatic, hydraulic, thermal, or optical scientific principles. Typical
employers include institutions, private industry, government, and the military. Working under the
direction of an engineer, physicist, and chemist, or metallurgist, technicians use specialized
equipment and materials to perform laboratory experiments. They help record data and analyze it
using computers. They may also be responsible for periodic maintenance and repair of
equipment.
16.1 REWARD STRUCTURE:-
There will be Extrinsic and Intrinsic rewards.
16.1.1Financial Rewards:
Conveyance allowance (will be 5% of basic salary)
Medical allowance (will be 3% of basic salary)
Education allowance for children
16.1.2 Others Rewards:-
Promotion
Career Development
Greater job freedom
Participation in Decision making
16.1.3 Working Hours:-
9am to 6pm for Desk job
8.30am to 4.30pm for labor workers Shift 1
4.30pm to 12.30am for labor workers Shift 2
12.30am to 8.30a.m for labor workers Shift 3
16.2 Lunch Hours:-
1.30pm to 2.30pm for all workers
16.3 Leave Schedule:-
2 leaves will be sanctioned to all employees
16.4 Succession Planning:-
Out sourcing for lower management level
For key position we will consider “REPLACEMENT CHART”
16.5 Training:-
On the job training for lower and middle management
16

20. 17. Financial plan
Manufacturing Budget of all Three products for 1st 3 Months
Jul Aug Sep
1.Electricity to
WAPDA
Projected Sales(MW) "1 MW per day" 0 0.8 MW/day 0.8 MW/day
Ending inventory 0 0 0
Available for Sale 0 0 0
Less: Beginning Inventory 0 0 0
Production Required in Mega Watt 0 0.8 MW/day 0.8 MW/day
2. BIO compressed gas to
Factories
Projected Sales (m3) 0 1425 1430
Ending inventory
Available for Sale 0 1425 1430
Less: Beginning Inventory
Production Required 0 1425 1430
3. Bio CNG
cylinders
Projected Sales(Cylinders) 0 2000 2200

21. Ending inventory 0 60 50
Available for Sale 0 2060 2250
Less: Beginning Inventory 0 50 60
Production Required 0 2010 2190
17

22. 18. Pro Forma Income Statement, Three Year Summary(in millions )
percent Year1 Year2 Year 3
sales 100 79.53 156.63 345.34
Less: Cost of goods sold 56.26 44.74 88.81 194.27
Gross Profit 43.74 34.79 68.51 151.07
Less: Operating
Expenses
5.09 4.05 7.98 17.59
Salaries & Wages

23. Office Supplies 0.19 0.15 0.30 0.65
Insurance 1.51 1.20 2.36 5.21
Depreciation 1.51 1.49 2.36 5.21
Fuel expenses 3.98 3.16 6.23 13.73
Licensees 0.13 0.10 0.00 0.00
Other 1.51 1.20 2.36 5.21
Total operating expenses 13.91 11.53 21.79 48.04
Profit before tax 29.83 23.44 46.73 103.03
Tax at 35% 10.39 8.20 16.35 36.06 18
Profit after tax 19.39 15.23 30.37 66.97
19.1 Pro forma Balance sheet for 3 years (millions)

24. 20. “Risk Assessment”
20.1 Level of Risks: -
19
Perennial Powers Company faces only execution and startup risks; there is no other risk
except some level of financial and product execution risk. The overall environment is
very helpful for the company operations and its sales. There is no market and product
branding related risk for the company because the company is serving in the necessities
of life which are going to be extinct in near future so the company has a great scope for
its products and services.
20.2 Product and Execution Risk:
This is the point of concern for the company at the initial level that companies
estimate may be wrong and some major changes have to make for meeting the
actual requirements. The gas estimation and generation is important in this whole
process of energy generation. The some initial level changes have to make for
efficient production. There is no direct competition and risk is attached with the company
technology.
20.3 Financial and control Risk:
Company faces the risk of capital arrangement in the start of business. The owners of the
company committed to the Islamic mode of financing so there is lesser chance to
obtain debt financing. The management of the company is inexperienced and some control
risks are exists. The company is selling to WAPDA so, the major risk is of late payment.
20.4 CONCLUSION:-
There is large potential of biogas generation in Pakistan to make it an alternate fuel for vehicle.
Biogas produced in large size biogas plants should be enriched before bottling for storage and
mobile purpose, as enriched biogas has more calorific value and better fuel quality. Out of several
methods of biogas enrichment, water scrubbing is found to be a simple, low-cost and suitable
method for enrichment of biogas in rural areas.

25. Overall, the study revealed that biogas enrichment and compression system is a profitable venture
for rural areas due to availability of large quantity of cattle dung. The system is recommended to
establish rural entrepreneurship for the effective utilization of local biomass resources for
production of biogas energy in decentralized manner and sustainable rural development.
20

26. Appendices
Technology:
Perennial powers focus on the technology that is useful for the efficient production and sales
control. The whole process is control through specially design software.

27. “Certificates required by the Perennial Powers Company”
The perennial powers company is looking for the licenses to start the operations of the
company and for the maintenance of quality and control. The company has applied for new
licenses from the below described organizations and National Electricity and Power
Regulatory Authority (NEPRA).

28. Forecasts and Financial Analysis
The details of forecasts and financial analysis are provided in the part of Financial Plan of this
feasibility.
Generic Value Chain for Biogas