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Business established

4

The Production of an Organic Improved Additive for Diesel Fuels

This additive considerably improves the fuel and the performance of the engine and helps in the fulfillment of emission standards.

The idea is to broaden and optimize the production of our Biodiesel production plant. In order to give our product a considerable added value, active ingredients are added to the Biodiesel formula to obtain an organic improved additive.

Facts

Legal status business
Formally registered
Year of establishment

2008

Sales (US$)
Two years ago: 0
Last year: 31,110
This year (forecast): 39,821
Year 2 (forecast): 8,226,630
Year 3 (forecast): 10,528,339
Net profit after tax (US$)
Two years ago: 0
Last year: 10,062
This year (forecast): 12,880
Year 2 (forecast): 455,085
Year 3 (forecast): 689,278
Total number of Employees
Two years ago: 0
Last year: 3
This year (forecast): 3
Year 2 (forecast): 13
Year 3 (forecast): 13

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 374,817
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 1,281,591
Total finance needed (US$) 1,656,408

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 23,748
Loans (debt) 1,306,128
Shares in your company that you offer to investors (equity) 326,532
Other sources 0
Total finance needed (US$) 1,656,408

The Business

What is your product/service?

An additive that considerably improves the fuel and the performance of the engine. It also helps in the fulfillment of emission standards and by far exceeds the benefits given by other additive brands.

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

Comply with environmental policies, reduce their operating costs (fuel consumption) and maintenance costs (to extend service intervals and lengthen the life of your engine and / or machines).

How will you make the product/service?

The process is called “transesterification”, the oil reacts with methanol in the presence of a suitable catalyst (NaOH or KOH). It is then mixed for three hours, which is the time needed for it to become a metilester, it is purified and the Active ingredients are added to obtain our Organic Improved Additive.

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

To place a quality product on the market and promote an eco-efficient fuel and additive consumption culture.
It will recruit a Sales and Marketing Manager, who will design and carry out the strategy for selling and distributing the additive and simultaneously to position the brand in the market.

To whom are you selling, what is your market?

By the begining, it will cover 1.49% of diesel consumption in the sectors of Mining, Transportation and Power Generation. After that, it will increase the production to cover more market.
We will enter the carbon credit market.

Describe your competitors?

Texaco
Castrol
Stanadyne
STP
ABRO
Fleetguard
Liqui Moly

These have a price range of around US$ 22.48 to US$ 90.40 for presentations which additive-ate 180 gallons of fuel.
We have a competitive price of US$ 25.02 for a presentation which additive-ates the same quantity of fuel (180 gallons).

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

We are the only company in Peru that produces an additive which uses Biodiesel as raw material.
Our additive has the same advantages as Biodiesel and moreover gives better advantages than others additives.

What makes your business, your product or service innovative?

To our Biodiesel has been given a considerable added value by incorporating active ingredients through a formula which obtains an organic improved additive and achieving a treat rate of 1: 2,000 gals. (1 gal. of additive will treat 2,000 gals. of Diesel fuel).
Reduces toxic emissions by 75%.
Increases mileage up to 14% per gallon.
Improves combustion and increases power (hp), among others not less important.

How will you ensure the growth of your business?

Hiring qualified personnel for the management of the company.
Promoting innovation having an area of R&D.
Finding and expanding our suppliers of raw material (Used Vegetable Oil).
We also will use as Raw Material "New Vegetable Oil" which enable us to increase our production and profit margin.

The Entrepreneur & Management

Describe the entrepreneur & management

Jose Luis Alcocer Juárez
Universidad Catolica de Santa Maria
Accountant and Financial sciences.
ADEX - Lima, International Trade.
UALM, Production of Biodiesel.

Renato Alcocer Juárez
TECSUP
Maintenance of Machinery of Plant.
UNALM, Production of Biodiesel.

The most important asset of ALDECO is made up of its management team and will consist of four individuals who will head the areas of administration, finance, law and marketing.

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

The same thing that made you qualified to do business.
Being entrepreneurs, innovators, make good decisions, desire to succeed and most importantly, raising capital and surrounding himself with people smarter than one for managing the business.

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)?

Reduction of 1,000,000 TN.CO2 produced by the consumption of Diesel.
Recycling of more than 356,479 gal. of residual oil.
Will help the reduction of pollution in rivers to an equivalent of 1,350,000 m3 of water.
Will also help prevent that this oil is reused in restaurants, which will diminish the hazards caused to the health of the frequent customers.
Quality of life of the population improves.
Creation of employment in rural communities.

4 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

Re: Felicitaciones muy merecido el primer lugar

Maria Isabel Abad, 14 feb 09, 21:32
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.

>

21 Aug 09, 20:25 Eduardo Salgado, 21 Aug 09, 20:25

SWFI.

Please check out the Sovereign Wealth Fund Initiative as an option for accessing investment funding the website is:
www.swfinitiative.org, should you have interest in exploiting this funding option; please revert to me ASAP.

JB.
info(at)iifg-eu.net

22 July 10, 16:58 'James Borgensen' - DISABLED SPAMMER, 22 July 10, 16:58