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BUSINESS PLAN

MISSION STATEMENT: Project offers immense scope for rural employment and education to farmers.

The project intends to churn the vast potential of Pongamia Pinnata oil with regard to its value as an eternal source of energy. The plan is to market the methyl ester of Pongamia Pinnata oil as a bio diesel, to be used without any changes to the existing diesel oil engines and hence solve the brunt of the huge energy crunch that India is facing today. This biodiesel is a cheaper, indigenous and “eco friendly” alternative to diesel that will shake the roots of India’s energy shortage. The vision, by this long term economic and energy planning, is to ameliorate the economic condition of the rural poor.

INDUSTRY ANALYSIS:

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PRODUCT DETAILS:

The product offering is a bio-diesel called PPME (Pongamia Pinnata Methyl Ester) which is extracted from the seeds of Pongamia Pinnata Milletia. The plant can be cultivated in any region or weather condition; it does not need fertile soil thereby leaving agricultural land unaffected.

Eco-Friendly: Pongamia adheres to all international standards of emission especially in terms of carbon residue. It does not produce sulphur oxides, which lead to acid rain. Carbon monoxide and un-burnt hydrocarbons in the exhaust is reduced by 50%.

FINANCIAL PLAN:

An initial investment of Rs 10 Million is required for building up the required infrastructure, procuring seeds, storage and transportation infrastructure. A high initial investment is required for buying the seeds from the farmers and for setting up of the extraction cum esterification plant. In the start we need 4 farm professionals, around 40 employees for the plant. I plan to break-even after 2.1 years.

|Infrastructure |Cost of raw oil |
|Costs |Rs. 22/litre |
| | |
|Trans-esterification plant |Biodiesel processing cost |
|Rs. 3,000,000 |Rs. 9/litre |
| | |
|Extraction Plant |Cost of production |
|Rs. 2,000,000 |Rs. 31/litre |
| | |
|Storage |Less return from crude glycerol |
|Rs. 1,000,000 |Rs. 3/litre |
| | |
|Procurement of seeds |Net cost of production |
|Rs. 1,000,000 |Rs. 28/litre |
| | |
|Operational Cost |Dealers margin |
|Rs. 1,000,000 |Rs. 1/litre |
| | |
|Miscellaneous |Sale price of biodiesel |
|Rs. 2,000,000 |Rs. 32/litre |
| | |
| |Profit |
| |Rs. 3/litre |
| | |

*Source Agrl. Engg. College & Research Institute, Tamil Nadu Agricultural University

MARKETING PLAN:

Target Market: • The product (biodiesel) will be sold to SMEs like local plywood and oil manufacturing industries at Rs.32/- per litre to run generator sets which suffer huge losses due to power cuts. • Glycerol, by product would be sold to soap making industry at Rs 40/kg • Oil cake, byproduct would be sold for free to the farmers.

• The biodiesel would also have the common man as its customer, as it can be used to run any diesel engine, thus as an alternative to diesel fuel for transportation.

Pricing: The product will be priced @Rs 32/liter, Rs.8 below diesel market price.

Placement (Distribution): We will follow a hub and spoke approach for the delivery of bio-diesel. There will be a main production center of radius about 1000km square. Distribution centers will supply to the nearby villages within 5kms radius. It will be a free delivery at the base station so that customer does not have to go to the petrol pumps.

The scholarship that may be awarded to you is an investment made in you by the Cohort MBA Program and the UT Dallas Jindal School of Management. Describe how they will benefit from this investment.

My idea of growth is not only limited to curriculum of institutions but includes having an open mind that is receptive to incessant learning from people and the environment around. I understand and appreciate the role of peer learning and have always benefitted from it. I believe there will be a lot of contribution from my side to my fellow students in the form of my versatile and mature thought process developed through my diverse work experience.

At my current employer-Infosys limited, initially it was an immense learning experience which later turned into a more responsible and demanding role as I had to mentor and train 80+ new employees. The onus of ensuring that the new team-mates learn and contribute positively was indeed a very enriching and challenging task. For my work performance, I was promoted to the next level in top 2% performance band. The new role requires me to lead a team of 10 members, delivering business enabling software to the clients from over 33 countries. My collaborative style of working helps me to be an effective team player and contribute positively to team dynamics and exhibit strong work ethics even under stringent deadlines. Having worked with people with different backgrounds and cultures, I have learnt to leverage the strength of diverse viewpoints and to serve as a team anchor, consensus builder and individual contributor to overall group performance.

In addition to this, my work experience as a Karaoke Jockey and a Teacher has improved my leadership, communication, people management, marketing and event management skills. I expect to apply all these strengths with the people I meet and study with throughout my MBA experience and I surmise my peers would be able to extract benefit from my experience in the aforementioned areas.

I understand that having a first-hand experience in markets across the world is necessary to be proficient in executing the business strategies with an international perspective. As the world turns flat, companies are facing fierce global competition in the market. I intend to hone my professional skills by experiencing various global markets. The scholarship will come handy to me to move into new business environments. I intend to utilize the money to avail myself of the opportunity to undertake international study trips. My sole objective is to utilize the opportunity via your scholarship and get deeper insight into the business techniques and strategies that are in vogue in different geographical locations; thereby put my skills into operations fully and meaningfully in order to help the companies to succeed in a global economy. In this whole process, I intend to take to new heights the UT Dallas brand which will be associated with me. Being an international student I can fully appreciate and understand the value of the scholarship that can be bestowed upon me. This will make me more conscious about my duties and the university’s brand and I shall leave no stone unturned to live up to the expectations of the people over there.

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