BUSINESS PLAN

OF BIODIESEL

Clean Fuel of Future (CFF) is a producer of renewable and environment friendly fuel, the biodiesel, delivered from vegetable oils. The company is located in Maharastra near Tarapur region and it is intended to provide full technological cycle of production: cultivation of jatropha seed, processing them into oil and final production of biodiesel. Purpose of the business plan is to attract investment in the creation of biodiesel production plant and Jatropha cultivation farming.

Objectives
Start production of biodiesel by the end of 2009. Maintain Net Profit Margin 30% with selling price no higher than that of conventional fuels

Mission Statement
Our product replaces conventional diesel and becomes the most perspective fuel of 21 century due to its environmental friendliness, renewability and low costs.

Keys to Success

Competitive Prices Constant Product Quality

High-profile Management Team

Production Summary
Plant Location

Marketing Plans

Market Analysis Market Trends Marketing Strategy Strategy Pyramid Value Proposition Competitive Edge Positioning Price Promotion Distribution Strategic Alliances Product Product Performance Key Advantages of Biodiesel

Sales Plans
Product Assortment

Sales Strategy
Sales Scenarios

Risk Analysis
Country risk
Sector risk Company risk

NORMAL SCENARIO Assets Cash and Securities Accounts Receivable

2009 7,690 13,000

2010 6,02,575 170,000

2011 13,28,010 160,000

Inventories
Total Short-term Assets Capital Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Accounts Payable Short-term Loans Other Short-term Liabilities Total Short-term Liabilities Long-term Liabilities Total Liabilities Paid in Capital Retained Earnings Earnings Total Equity Total Liabilities and Capital

34,000
54,690 17,00,000 50,000 16,50,000 17,04,690

32,000
8,04,575 17,12,000 1,86,360 15,25,640 23,30,215

32,000
15,20,010 17,24,000 3,22,720 14,01,280 29,21,290

16,000 200,000 0 2,16,000 0 2,16,000 20,00,000 0 -5,11,310 14,88,690 17,04,690

16,000 0 0 16,000 0 16,000 20,00,000 -5,11,310 825,525 23,14,215 23,30,215

16,000 0 0 16,000 0 16,000 20,00,000 3,14,215 591,075 29,05,290 29,21,290

Break-even Analysis
According to the normal scenario, we can regard 2005 as the reference year for the normal production.

Total sales 21,30,680 RS Production quantity: 500 tons

Unit sales price: 4261 RS / ton Total costs are 5,38,060 RS unit variable cost: 39.8 RS / ton

Fixed costs are 3,39,060 RS

As a result, the break-even quantity of the biodiesel production is 878 tons.

Exit Scenarios
Normal Exit
Project Failure: The total cost of the initial equipment is 15,40,000 RS, with an annual depreciation of approximately 1,54,000 RS. The agricultural machinery can be sold at least for 70% of book value oil processing equipment for 90-110% of book value biodiesel production is still a unique business in India, and to sell the equipment we need to find a buyer. This may or may not take time, so the selling price of the equipment may vary from 20% to 110% (we found buyer, who is interested to start the production on the existing facilities). The sale of other current assets, such as final and by-products are possible at full market price in a very short time: in one month maximum. office furniture and other small items. Their market value will be around 80-100% of their book value.

As a summary, we estimate that the investors could collect 30-100% of their initial investments, if they suddenly decide to sell everything

Thank You