Bio Fuel from Captive Feed Stock with Multiplex Plantatiion

Opportunity Snapshot

Investment Opportunity

Bio-diesel has been identified as the requisite liquid bio-fuel to meet the energy demand for the future millenniums. Bio-diesel is Methyl or Ethyl ester made from virgin or used/cooked vegetable oils of both edible and non-edible origin or from animal fats. Our project is about a captive feed stock plantation for the production of non-edible vegetable oil & production of bio-diesel.

Our project is looking at the potential of the Plant Kingdom for meeting the demand for liquid bio-fuel, which may supply energy for the future Millenniums. What is needed is only rigorous and pragmatic planning and utilization of the available fallow, semi-arid, arid or irrigated land in all the countries and optimizing the utilization of land by keeping agricultural land for cultivation at a maximum level.

Therefore, the total planning and the economy as a whole depend upon the inter-dependency between:
1) The population
2) The energy needs for liquid/solid bio-fuels
3) The agricultural output required by the population as food —with lifespan of such plants, for maximum sustenance.

After the Oil War the Equitable Energy Revolution is on the door-steps together with the Green Revolution which at this stage requires fine-tuning, otherwise we may face catastrophic consequences. Both developing and under-developed countries have maximum stake in this issue, i.e. we should look at the economic independence at country level and the economic inter-dependence at global level. The countries have to be considered with regard to their land mass and needs for energy & food for their population.

The production will result in high quality output: biodiesel with International Standard (ASTM), as well as high quality by-products.

Bio fuels promise to sky rocket the Naturals industry by exponential portions. The fuels are processed and extracted from plants. They possess all the properties automobiles require for their functioning apart from being an excellent lubricant; moreover, their emissions are almost negligible.

a. Low cost feed stock
b. 75% of the Biodiesel production cost is the cost of feedstock. So we have our plan to start from there only for the sustenance.
c. We will grow Jatropha/Pongamia feed stock which is known to be the best & the only commercially viable feed stock.
i) Low investment
ii) Potential yields of 12-23 tons/ha for 35- 60 years, just like tea plantation
iii) Oil content attainable 35%-50%; depends on initial maintenance

Very few have given stress on the massive cultivation of feed stock which is the resource of the main raw materials. Our plan is to start from there only.

Processing (Modular Refinery):
Bio Diesel processing does not require any critical special technology which is not known to our Indian scientists and technologists. Therefore, we don’t foresee any justification in hiring any foreign technologists or any JV partner for this project.

Appraisals earned:

The promoter has already earned 1 national appraisal among 11,000 participants from the forum of investor namely the ‘Indian Angel Network’, other international appraisal namely ‘Venture Worthy .Com’ silver award among 1,00,000 participants & Gold award in 28th June,2011 for his article and ‘Executive Business Summary’ for raising capital, and now in the hunt of several such investors namely Band of Angels, Indian Venture Capital Association, Joint Capital Assistance, Suisse Investment Company, VA Tech Finance India Ltd, etc. We are looking for immediate start up fund in the tune of $ 1.75 mln. Prospect is in Billion in 5 years down the line after full scale operation.

Competitive Advantage

Multiplex captive feed stock plantation for best sustenance. Details will be provided only at a face-to-face meeting with any prospective investor after signing NDA in India.

Rationale for the deal

Our market base is the 6th largest crude oil consumer in the world. Data says there was import value of $ 100 billion in the period 2008-2009 in India. We are targeting 20% of this as our market.

Main rationale is in the economy of the deal. Moreover, there is a ‘Electrolyte technology’ based oil additive in our fuel; that results in more than 35% saving in Oil consumption. Moreover, in line with the Indian fuel policy; regular Bio Diesel will be sold to the Oil PSUs at a pre-determined price (off take declaration is mandatory for Oil PSUs).

Respectively, the market is beyond imagination and so is the scope for investors.

There is a basic trade differentiator between us and the other 2nd generation 1st mover Bio Diesel producers, as presented in our plan and strategy which will be made available only in a face-to-face meeting with the potential investor in India.

Use of financing

The financing will be used for the commercial start up for now and for the first round of model captive plantation development till the IPO in the 6th year. Real development will then be started. This project will seek not less than $ 100 million after this first round of investment just after 5 years. Huge scope of expansion is in plan. Further money can be arranged through IPO or Venture capital investment as it would suit the company practically better.

Petronexx Oil India project break up of first implementation plan layout:

1. Registration of the project with the Govt of India and licensing for supply
2. Arranging own leasehold lands for master plantation
3. Simultaneously developing contract farming
4. Finalising negotiations with a plantation partner to develop plantation site and laboratory
5. Ordering processing plant after physical demo in a third party factory
6. Starting construction of a factory shed (the factory will be on the own project site taken on lease)
7. After reaching the plant & machinery, installation of the same under supervision of our project engineer and Director
8. Commercial production to start on demo basis; & feed them with known transport operators to test the market feedback
9. Regularise the production & increasing the desired 100% capacity utilization
10. Start supplying to the Govt refineries as per license
11. Apply for ISO 9000 certification
12. Developing plantation for feed stock back-up
13. Developing multiplex farming modules of the project to start revenue earning of the blocked capital in feed stock plantation
14. Expanding franchise & sub-franchise model of the contract farming in the rural Value chain. (This is up to the first level of operation break-even

Opportunity for the investor

The investor should be honoured as a board member with active participation towards policy matters and control over the real advancement and development of the venture as a mentor. Partnership as both permanent and temporal investor is acceptable. But we look forward to a HNI veteran, industry leader to let us grow with his back up and blessings to build a conglomerate in the Oil & gas which we want to become the first in Bio fuels in Asia, then in the other continents within 10 years’ time. We plan to launch IPO within 5 years after the full capacity utilization is done. The mammoth expansion is described in the actual plan. Being a unique project itself this venture brings most of the Govt’s attention towards support in all sense. There is opportunity for the investor to diversify into other businesses by partnering with us in India, although we plan to stick to this main business only.

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