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Sustainable income generation through natural energy

Income generation programme for Self Help Group (SHG) members through planting of Jethropha plants by Infinite Energy And Natural Resources (Infinite).

  • Bid-R2-Busins-Plan-Compltd-2.doc

    Bid-R2-Busins-Plan-Compltd-2.doc

‘Infinite’ obtains its motivation from the need to produce environment friendly, renewable sources of energy. Jethropha is a plant the seeds of which can give biodeisel. Infinite has planted and learnt the benefits on its own farm. It now will help Self Help Groups SHG), in planting Jethropha on their land, and generate regular income.

Facts

Year of establishment

2006

Sales (US$)
Two years ago:
Last year:
This year (forecast): 6,000
Year 2 (forecast): 187,500
Year 3 (forecast): 375,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): -375000
Year 2 (forecast): 112,500
Year 3 (forecast): 300,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 10
Year 2 (forecast): 15
Year 3 (forecast): 15

How do you expect this to be financed?

Own Contribution in cash 2,500
Loans (debt) 55,200
Shares in your company that you offer to investors (equity)
Other sources
Total finance needed (US$) 57,700

The Business

What is your product/service?

Jathropha (Jathropha Curcas)

Although it is a drought resistant species and would survive under extreme climatic conditions, experience has shown that the best result is under irrigated conditions.
The spacing under irrigated condition is 2x2 (or 2.5x2.5) meter. 1100 (or less) seedlings can be planted in one acre. However, Infinite is recommends to plant 1000 seedlings per acre. It is non browsable by animals. Maintenance is minimum. Seasonal ploughing along with appropriate pruning is good. Fertilizers as required.
Yield: In the eighth month, the Jatropha tree starts flowering and fruits ripen within 45 days. For the first flowering there will only be one of two bunches of fruits and the fruit will have very few seeds.
In the second year, the minimum harvest is three kilograms of seeds per tree, in the third year five to seven kilos, in the fourth year ten to twelve kilos and in the fifth year onwards up to fifteen kilos depending on the soil condition and has a life span of 50 to 55 years. When 3.5 kilograms of Jatropha seeds are expelled, one liter of Jatropa oil is generated. All petroleum companies in India buy any quantum of Jatropha Oil at the rate of INR 25 per liter (including Indian Railways).
Petroleum companies extract the glycerin content from the Jatropha oil and add some chemicals to make bio-diesel. Glycerin is used for many industrial applications and the oil cakes are used as insecticide and fertilizer.
Government support.: Government of India is offering subsidy while availing a bank loan for Jethropha plantation. The state Government is providing seedlings on a subsidized basis to farmers.

Concrete plans are being formulated to utilize wastelands for tree-borne oilseed (TBO) plantations such as Jatropha curcas and Pongamia pinnata.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

When 3.5 kilograms of Jatropha seeds are expelled, one liter of Jatropa oil is generated. All petroleum companies in India buy any quantum of Jatropha Oil at the rate of INR 25 per liter (including Indian Railways).
If 1000 Jatropha trees are planted in one acre of land, this will mean that in the 5th year, the farmer will produce@ 12kg per tree, 12000 kgs of seeds and earn Rs. 60000 @Rs.5 per kg in one year. For five hundred acres income would be Rs.3,00,00,000. (three crores). Market rate by March 2007 was Rs.9/= per kg.
Petroleum companies extract the glycerin content from the Jatropha oil and add some chemicals to make bio-diesel. Glycerin is used for many industrial applications and the oil cakes are used as insecticide and fertilizer.

What makes your business different/better than your competitors (competitive advantage)?

It is a drought resistant species and would survive under extreme climatic conditions, experience has shown that the best result is under irrigated conditions.
The spacing under irrigated condition is 2x2 (or 2.5x2.5) meter. 1100 (or less) seedlings can be planted in one acre. However, Infinite is recommends to plant 1000 seedlings per acre. It is non browsable by animals. Maintenance is minimum.

The Entrepreneur & Management

Describe the entrepreneur & management

Many points under this have already been answered earlier under 5.
During the last three years the price of Jethropha seeds have been rising steadily from Rs. 5 to Rs.9 per KG as on March 2007. The reasons for failure of Jethropha plantation was found to be complete lack of irrigation. There is a belief that Jethropha is a drought resistant species and does not require any irrigation. While it is true that it is a drought resistant species some occasional irrigation is required in the early years. However I believe that food producing cultivating areas should not be converted into Jethropha fields as such steps can affect nation’s food production. Only waste and uncultivated land may be used for Jethropha palantation.

Development

How does your business improve the local living standards (social and environmental)?

Income of about 1500 families are expected to go high in two years’ time and they will continue to earn not only return from sales of Jethropha seeds but also through shares of Infinite which will be given to the SHGs and not to individuals.

Needs
Advice - production, processing