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Business established

2

Production and comercialization of Biodiesel

Biodiesel is a Bio-fuel produced from vegetable oils or animal fats and replacing Diesel 2.

Extension and optimization of the plant of production in Arequipa, that obeys to the obligation in the use of Biodiesel from the 01 of January of the 2009, (by law), date in which the B2 (2% Biodiesel + 98% Diesel 2) in all the country is mandatory use, and from the 2011 B5 (5% Biodiesel + 95% Diesel 2).

Facts

Legal status business
Formally registered
Year of establishment

2008

Sales (US$)
Two years ago: 0
Last year: 0
This year (forecast): 0
Year 2 (forecast): 6,650,033
Year 3 (forecast): 18,216,721
Net profit after tax (US$)
Two years ago: 0
Last year: 0
This year (forecast): 0
Year 2 (forecast): 87,088
Year 3 (forecast): 602,005
Total number of Employees
Two years ago: 0
Last year: 0
This year (forecast): 3
Year 2 (forecast): 11
Year 3 (forecast): 11

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 491,163
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 1,016,820
Total finance needed (US$) 1,507,983

How do you expect this to be financed?

Own Contribution in cash 20,450
Loans (debt) 1,190,026
Shares in your company that you offer to investors (equity) 297,507
Other sources 0
Total finance needed (US$) 1,507,983

The Business

What is your product/service?

Biodiesel is a renewable Bio-fuel which comes from vegetable or animal oil and fat. The prefix “Bio” refers to its renewable and biological nature and “Diesel” refers to its use in engines of this type.

What customer need/problem do your products/services satisfy?

Due to the fact that since January 1st 2009, according to the policies established in the country (Executive Order 021-2007-EM “Policy for trading Bio-fuels”) it´s mandatory to use B2 and as off 2011 to use B5.

How will you make the product/service?

The process is called transesterification, the oil reacts with alcohol in the presence of an suitable catalyst, this mixture is deposited in a reactor where is the oil, mixes during one hour time that delays to become methyl ester, soon this is purified and polished to become Biodiesel.

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

The Biodiesel will be sold to the state enterprise PETROPERU who must comply with the rules established for the commercialization of B2 by 2009 and B5 by 2011.
To place a quality product on the market, encourage our clients to be faithful and promote an eco-efficient fuel consumption culture.

To whom are you selling, what is your market?

Currently we deal with a portfolio of clients who absorb our production and also with potential clients which is why we must intensify our recycling program.
Biodiesel production from this project will be placed to the PETROPERU company.

Describe your competitors?

Heaven Petroleum Operators
Industrias del Espino
Pure Biofuels Corporation
Biodiesel Perú internacional
Interpacific Oil
Inter Latinoamericana
Productos Bioenergéticos del Perú
Universidad Nacional Agraria La Molina

Currently 7 out of the 8 companies that produce Biodiesel are located in the city of Lima, except for the “Industrias del Espino” company which is located in the city of San Martin.

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

We will purchase a reactor for the production, it will reduce costs of the main supply (methanol) by 82% and the cost of purchasing is substantially inferior when compared to the current production plants.

What makes your business, your product or service innovative?

Biodiesel is made from renewable organic products (vegetal oils). Biodiesel has positive an environmental impact since it significantly reduces the emissions of all the polluting agents, in addition protects and extends to the life utility of the motors and machines that use this product. The Biodiesel has a high degree of Biodegradability.

How will you ensure the growth of your business?

We are the first and only company that produces Biodiesel in the southern region of Peru and we will be the first in Peru to use state of the art technology in the production of Biodiesel, with this we will cover the necessary demand for the city of Arequipa and by 2013 will have covered the demand of Biodiesel in the southern region of Peru.

The Entrepreneur & Management

Describe the entrepreneur & management

Jose Luis Alcocer Juárez - Manager
Education: Universidad Catolica de Santa Maria - Arequipa.
Accountant and Financial sciences.
ADEX - Lima, International Trade.
Universidad Agraria La Molina, Production of Biodiesel.

Renato Alcocer Juárez - Production
Education:TECSUP - Arequipa.
Maintenance of Machinery of Plant.
Universidad Nacional Agraria La Molina, Production of Biodiesel.

What specifically makes you and (if relevant) your management team most qualified to build this business?

It is known well clearly for the good management of the company, this must have professionals and expert advisers, who commit themselves with the ALDECO objectives.

How much time do/will you expect to spend per week in the business?

7 days per week working full-time (approximately 14 hours daily).

Development

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

To contribute to the conservation of the Environment.
The quality of life of the population improves.
The creation of job vacancies for the agricultural communities.
Locals will be helped in the increase of income as they will establish a higher added value on their harvests by converting grain into oil.

2 comments

Felicitaciones muy merecido el primer lugar

Muy interesante el trabajo que están realizando , especialmente contribuyen a mejorar y proteger el medioambiente.Encuentro importante la prevención de la salud al evitar la reutilización del aceite en el consumo gastronómico.
Felicito especialmente al señor José Luis Alcocer, a quién tuve oportunidad de conocer en la Premiación de bidChallenge en diciembrew 2008 en Lima. Sigan Adelante.Écon. María Isabel Abad.e.mail-mujerespralaaccion_peru@yahoo.es

14 Feb 09, 21:32 Maria Isabel Abad, 14 Feb 09, 21:32

Un proyecto con futuro

Cuales son los granos que piensan sembrar?

18 June 09, 18:23 Carlos Gonzales, 18 June 09, 18:23