Bio-Diesel Project - Business Model
 
 

Immediate Business Model:

In the initial years, CEL intends to import raw materials and export complete production to EU nations and while doing so shall streamline backward integration into Energy crop plantations

High quality raw material (Crude Palm & Soya Oils) are available from Indonesia, Malaysia and South America and CEL structuring as an Export Oriented Unit enables tax efficient import of the raw materials

Exports are contemplated to Europe in view of significant market scope and better value for the end product. Confirmed arrangements are already in place for sale of 100% of the output

The Technology being used enables the utilization of multiple raw materials with variable qualities

The plant & process center layout is designed with a view to exploit maximum value out of the raw material

Long term strategy:

In line with its Vision, CEL proposes to be the leading producer of renewable and environment friendly fuels derived from natural sources,

CEL believes in building symbiotic partnerships for facilitating growth and mutual benefit

The Vision will be achieved through a combination of Backward Integration Strategy for gaining control on raw materials and Market Penetration Strategy for building market presence

As part of Backward Integration Strategy, CEL has -
 

Initiated discussions with various Tissue Culture laboratories in India to enable multiplication of the right germplasm which would be provided to the participating farmers to meet the escalating demand for Jatropha seedlings

Initiated dialogue with a leading Corporation for identifying and developing genes that would control various aspects of development of the domestic energy crops and thus work towards improved genetically modified versions of the crop

Started entering into Memoranda of Understanding for Buyback of Jatropha seeds from farmers.

Initiated discussion with large Trading Companies in Malaysia & Singapore for a partnership in Trading and Hedging of Commodities

As part of Market Penetration Strategy, CEL
 
Proposes to set up multiple scalable facilities in India and other South Asian countries to build market presence
Proposes to propagate a Franchisee Model for growth & synergy

Has initiated discussion with several large Indian & Multinational Business Groups for setting up their Biodiesel Plants on a Turnkey basis

Has initiated works for first plant at Falta SEZ,kolkata, India

Is building a business plan with a diversified product mix to effectively utilize the active ingredients in the raw material

Products include Methyl Esters, Pharma Grade Glycerin, Phytochemicals, Tocopherols, Surfactants, Methyl Ester Sulphonates (MES), Fatty Alcohols, Lecithin, etc. The necessary forward integration plans for these products are in place
 

 

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