2. Executive Summary
Bio-fuels industry in India is at nascent stage and comprises of
Industry – Ethanol (made from Sugarcane - molasses)
Overview – Bio-diesel (made from Jatropha seeds)
Ethanol production was XX bn lites in 20-- while bio-diesel production was merely YY tonnes
Production cost of ethanol from molasses is INR A per litre and bio-diesel from jatropha is INR B-C
LE
per litre
Drivers: Challenges:
Drivers &
Challenges
prices
MP
Increasing energy demand and rise in oil Raw material supply constraints
Food vs. fuel
A
National Bio Fuel Policy Cost competitiveness
Policies &
Initiatives
S
Support from automobile manufacturers
Government is taking various initiatives to promote bio-fuel sector and reduce India’s
dependence on oil imports
National policy on ethanol and bio-diesel, 100% FDI and exemption of excise tax will boost the
bio-fuel sector
Company W is the major player in India with about a% market share
Other major players include Company X,Y and Z
Competition Indian oil majors, and big corporate houses are foraying into the bio-fuel industry to cash on the
untapped potential
New entrants include Company A, B,C and D
BIO-FUEL MARKET – INDIA. PPT 2
4. Indian bio-fuel market is at nascent stage but expected to grow
significantly in coming years
Industry Overview Production distribution of bio-fuels
• Development of bio-fuels is yet at a nascent stage in
India but is being actively pursued to reduce India’s
dependence on oil imports
With x% of crude oil requirement being met through
imports, the government is promoting use of bio-fuels
LE
Punjab Chandigarh
• Bio-fuels primarily comprise of:
P
Haryana
Ethanol (made from sugarcane - molasses)
Bio-diesel (made from Jatropha seeds) Uttar
M
Rajasthan
Pradesh
A
• Bio-fuels has significant growth potential in India due
S
to government initiatives, mechanisms to expand Madhya
production capacity and minimize price fluctuations Gujarat Pradesh
Chattisgarh
of key raw materials
Maharashtra Orrisa
Daman
Category Market Period CAGR & Diu
Andhra Ethanol Mixed Petrol
Ethanol production U 20-- - -- a%
Goa Pradesh
Jatropha Bio-Diesel
Ethanol production V 20-- - -- >b%
Karnataka
Puduchery Ethanol & Jatropha
Ethanol consumption W 20-- - -- c%
Tamil Nadu
Bio-diesel production X 20-- - -- >d%
Source:
BIO-FUEL MARKET – INDIA. PPT 4
5. Drivers & Challenges
Challenges
Raw material supply constraints
Drivers
Food vs. Fuel
Increasing energy demand and rising
oil prices Lack of Cost Competitiveness
National Bio-fuel policy
Support from automobile
manufacturers
BIO-FUEL MARKET – INDIA. PPT 5
6. Ethanol and bio-diesel policies, 100% FDI and exemption of
excise tax will boost bio-fuel sector
Ethanol Policy Bio-diesel Policy
• Government approved National Policy on Bio-fuel • By the year 20--, the Planning Commission aims to
aiming a% blending of bio-fuels with petrol and diesel plant jatropha in X mn hectares of land. This will meet
by 20-- in all states except Jammu and Kashmir, the the requirement of b% blend of bio-diesel with petro-
north-east and the island territories diesel
Policies favouring
Bio-fuel growth
100% FDI Exemption of central excise tax
• 100% Foreign Direct Investment (FDI) in new and • The central government has exempted bio-diesel from
renewable energy is allowed in India, provided bio- central excise tax and is contemplating on bringing bio-
fuels are based solely on non-food feed-stocks to be diesel and ethanol under the ambit of 'declared goods’
raised on degraded or wastelands
Source:
BIO-FUEL MARKET – INDIA. PPT 6
7. Company W is the major player; many small and big firms, are
showing interest in setting up bio-fuel production plants
Domestic Bio-fuel Producers Market Share
• The bio-fuel industry is at a nascent stage and hence
it offers huge untapped potential for existing and
upcoming players Others
a%
• Government initiatives and policies to promote the
industry have encouraged new players to enter the
LE
market
P
More than a companies (including state owned oil
companies and b) have shown interest in the production
b%
of bio-diesel
than v% of the market share
• Other Major Players:
Company W S M
• Praj Industries is the major player in India with more
A
Company W
Revenues of major players (2007-08)
Company X Company W A
Company Y
Company Z Company X B
• New entrants:
Company U Company Y C
Company V INR mn
Company Z D
Going forward the bio-fuel industry is expected to have more competition and big players
Going forward the bio-fuel industry is expected to have more competition and big players
Source:
BIO-FUEL MARKET – INDIA. PPT 7
8. Thank you for the attention
The Bio-fuel Market - India report is a special feature from Netscribes.
For more detailed information or customized research requirements please contact:
Natasha Mehta, CFA Gagan Uppal
Phone: +65 9651 6382 Phone: +91 98364 71499
E-Mail: natasha.mehta@netscribes.com E-Mail: gagan.uppal@netscribes.com
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BIO-FUEL MARKET – INDIA. PPT 8