Sintex Industries Limited

Vision for Biogas Plant and Manure in Rajasthan

Summer internship Project report09th, April 2012

Submitted To Submitted By

Mr. Ramesh Jhamtani Ravindra Pal Marwal

(Management Consultant) PGP 13067

Fostiima Business School

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Acknowledgement

I would like to express my gratitude to all those who have made it a possibility tocomplete this project. I will begin by thanking my mentor Mr.Ramesh Jhamtani (Management consultant and Ex. Advisor at planning commission of India) for not only devoting his time to answering all my queries but also for guiding me.

I would ever remain grateful to Mr. Sunil Kala, FOSTIIMA BUSINESS SCHOOL for extending his help and co-operation as and when required.

I also want to thank all my colleagues for giving their respective contribution, in making it a successful research based project. My heartfelt thanks to Mr. Sharwan Lal Choudhary for data collection, Mr. Benjamin Zhimomi for data editing and compilation.

Last but not least I would like to thank my friends and family for extending their support by providing us a conducive environment to work and enduring the odd timings of working of the project.

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Table of contains:- Excecutive Summary

Introduction

Sintex - An Overview

Objectives

Research Methodology

Data Collation

Data Analysis and Interpretation

Recommendations

Bibliography

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Executive Summary:-The Project consist of the development of Biogas Plants by Sintex Industries Ltd. in Rajasthan for the promotion of family type biogas plants(Ready to Use), for farmers as well as road side Dhabas, hotels, college canteens and hostels, Gurudwaras and hospitals to provide clean alternate fuel to the rural masses and enriched organic manure for agriculture. The implicit objective of the programme is to reduce the use of nonrenewable fuels and fuel wood. In order to help the poor who cannot own and operate family type biogas plants, the programme for promoting large biogas plants at the community level is there. The Sintex’s ready to use family sized biogas plant has been receiving public attention and scrutiny because of its potential as an alternate source of good and renewable source of energy, and also because of its good performance and durability of plants. Through diagnostic analysis, the study aims at identifying the factors contributing to the success and failure of the programme. In addition, the study is designed to reflect on the viability of alternate strategies to realize the biogas potential in the Rajasthan.

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Introduction:

Sintex: An OverviewSintex Industries Limited (Earlier known as The Bharat Vijay Mills Ltd) has two divisions – textiles and plastics. In the area of textiles, company has been pioneers in high value fabrics.

Sintex’s plastics division started in the year 1975 and today company has most diversified manufacturing capabilities in plastic processing in the world with 10 plants spread across the country, more than twelve manufacturing processes under one roof, having more than 500,000 Sq. meter area and a more than 1000 strong work force. Company has also created extensive finishing, assembling, metal fabrication and concrete products facilities. Combination of such varied capabilities along with our state-of-the-art design and tool room facilities enables us to give vast array of products and solutions.

The operation in plastics is in building and constructions, prefabs, interiors, industrial plant, electronic equipment and environmental or green products.

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Sintex’s Portable Biogas plant:Sintex Industries Ltd, based at Kalol in Mehsana district of Gujarat, has come up with a 'ready-to-use biogas plant' to address the problem of wet-waste. Biogas technology in the form of biogas plant helps to convert all types of organic waste into eco-friendly biogas. “The biogas plant not only saves the cost of LPG per month, but also gives high quality organic manure.” So by the Sintex’s portable biogas plant, it is possible to develop a market for dung, enriched slurry and biogas in rural areas so that the day-do-day operation can be commercialized and made self-sustainable

Introduction of competitors:-In Rajasthan I found out only one competitor which is installing the family type traditional cemented biogas gas and which is “Foundation for Ecological Security.”

The crux of FES’ efforts lie in locating forests and other natural resources within the prevailing economic, social and ecological dynamics in rural landscapes and in intertwining principles of conservation and local self governance for the protection of the natural surroundings and improvement in the living conditions of the poor. By working on systemic issues that can bring about a multiplier change, they strive for a future where the local communities determine and move towards desirable land-use that is based on principles of conservation and social justice.

FES presently works with 2208 village institutions in 27 districts across six states, and assists the village communities in protecting the 130,000 hectares of revenue wastelands, degraded forest lands and Panchayat grazing lands (Charagah lands). They support Panchayats and their subcommittees, Village Forest Committees, Gramya Jungle Committees, Water Users Associations and Watershed Committees in order to improve the governance of natural resources. Regardless of the form of the institution, they strive for universal membership and an equal access of women and poor in decision making.

Traditional Biogas provided by them:-

The traditional biogas manufacture by them is starting from 2 meter3. And the cost of it is Rs.20000 to 22000 thousand. For manufacturing the biogas plant and they appoint their worker. The whole work is done in the supervision of them. They are not providing any subsidy to the households.

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About the Rajasthan:

Rajasthan’s total population is 6, 86, 21,012 and total rural population is its 75.11% (5, 15, 41,242). Biogas plant can sustain in rural households. The number of villages in Rajasthan is 34890. There are the following facts, on the basis of these facts we can say that the biogas plant will sustain in Rajasthan-

1. Large number of the rural population(75.11% of total population 51,541,242)2. A large no. of village 34,8903. Increasing price rate of LPG4. Non availability of the conventional fuel and Kerosene 5. Easy to run in rural households because every 3rd house having three to five livestock6. In Rajasthan, the total no of Gosalas are approx 700 registered and more than 700

unregistered. So we can also provide the dung for running for biogas plant.7. There is large no. of cattle in Rajasthan (5.4 million) so the availability of dung is not an

issue for running the community type of biogas plant. 8. There is huge amount of kitchen waste (10 to 15 Kg at average Dhabas) which is only

waste for the owner of the Dhabas. This huge amount can use in the biogas plant.9. There is also huge amount of kitchen waste in the collage canteen and the hostel

which can be use in biogas plant.10. Temperature: Temperature plays the most important role in the bio-gas production.

The total amount of gas production from a fixed weight of organic waste is best when the temperature is within the messophillic range 25°C-37°C and thermophillic range between 45°C-55°C. The gas yield is maximum in the thermophillic region and the period of digestion is also reduced. It takes about 55 days in messophillic range for digestion where as it takes about 7 days in thermophillic region. In Rajasthan through the year the temperature remains more than 30°C. So the climate is also supportive in Rajasthan.

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Objectives:-The objective of the study was to examine the domestic use of biogas and manure as organic fertilizer in Rajasthan. So followings were my objectives-

To conduct survey to check awareness about the biogas plant and manure. To find out reasons why people are not installing the biogas plant. To find out how conventional biogas plants are successfully working. To find out what people know about the manure and its fertility power. To analysis the cost of normal dung and manure. To find out the use of kitchen waste at road side Dhabas, collage canteens and hostels,

hospitals, Gurudwaras and waste in Sabji Mandhi (e.g. Peels of vegetables and fruits and other wastage).

To find out scope of community biogas plants.

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Research Methodology:Marketing Research:-

Family type Biogas Plant-

For conducting the research a questionnaire was made by me which was to be filled in accordance with the replies of the rural households and the owner of the Dhabas and canteens. For this different 500 people in 30 villages in 7 districts and 60 Dhabas on the NH-8 (Jaipur to Ajmer and NH-11, Jaipur to Agra) were examined and the feedback was taken.

Cost of manure and the natural dung

To find out the cost of the natural dung I measured 2 Trolley filled with the fresh natural dung. And examined 10 seller and 8 buyers of the natural dung. For the selling price of the manure is found out from the 3 seller of the manure.

Community Biogas plant:-

To find out the scope of the community type biogas plant, a questionnaire was made by me which was to be filled in accordance with the replies of the Sarpanch or the Mukhiya and other respected person in the society or village.

Competitor’s Analysis

For a business to be successful it is very important to study that what its competitors are doing in the market. To analyze the competitors some important aspects like Prices, plant size and Promotion schemes were evaluated. For this evaluation I founded only one organization, Foundation for Ecology Security which working for the installing the biogas plants in the Rajasthan.

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Data collation and interpretation:- Following is the data collected from the research conducted:-

Marketing Research

1. Feedback from households:-

The feedback from a total of 500 rural household was taken from 30 villages in 7 districts in the Rajasthan. The specification is as follows:-

District Jaipur, 286 household in 13 villages. District Ajmer, 90 households in 6 villages. District Sikar, 50 household in 5 villages. District Alwar, 40 household in 3 villages. District Jalore, Pali, Sirohi, 34 household in 3 villages.

Agree to install80%

Agree to install but see first

11%

Denied to Install8%

500 Household

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1. Feedback from the Dhabas:-

The feedback from a total of 60 Dhabas was taken on National Highways in Rajasthan. The specification is as follows:-

40 Dhabas on National Highway-8 Jaipur to Ajmer. 20 Dhabas on National Highway-11 Jaipur to Dausa. At 53 Dhabas, the kitchen wastes are thrown out. At 07 Dhabas, the kitchen wastes are given to sweeper for the cleaning

the Dhabas and kitchen. These sweepers are feeding this waste to their pigs.

Agree to Install78%

Agree to Install but see first

15%

Not interested to Install7%

60 Dhabas

Note: At the Dhabas and road side hotels using the wood as fuel, most of them are not interested to install the biogas plant.

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2. Feedback from the school’s and collage’s canteens and hostels:-

The feedback from a total of 23 college and school’s hostels and canteens was taken from Jaipur and Ajmer, Rajasthan. The specification is as follows:-

17 Canteens and hostels in Jaipur. 11 Hostels and canteens in Ajmer.

In the above sample of 28 hostels and canteens, there are two parts-

a) In 22 hostels and canteens LPG is using as fuel.b) In 06 hostels and canteens wood is using as fuel.c) In all the hotels and hostels the kitchen waste thrown out for free

roaming cows and pigs etcs.

Agree to install77%

Not interested23%

22 Canteens & Hostels

Note: The canteens and hostels those are using wood as the fuel, they are not interested to install the plant at all.

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3. Feedback from the Gurudwaras:-

The feedback from a total 22 Gurudwaras was taken from Jaipur, Alwar, and Ajmer in the Rajasthan. The specification is as follows:-

10 Gurudwaras in Jaipur and its nearby sub urban areas. 07 Gurudwaras in Ajmer and its nearby sub urban areas. 03 Gurudwaras in Alwar and its nearby sub urban areas.

In the above 20 Gurudwaras, 5 Gurudwaras those having the cows and they are ready to install only dung based biogas plant.

Denied to install63%

Agree to install38%

20 Gurudwaras

Note: Gurudwaras those denied to install, told the reason that they do not have any cattle and they serve the extra food the poor people and beggar and all the Gurudwaras denied to inlet the food waste and kitchen in the biogas plant, they said that they gives it to the outside cows or their own cows as food.

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4. Feedback from the Sarpanch and the Mukhiya of the villages for community type biogas plant:-

A. 08 Gram Panchayats were surveyed by me in the district Jaipur. 3 Gram Panchayats are ready to install the biogas plant on the trial basis. But main problem that who provide the land for that system. Only one Gram Panchayat out of 8 is ready to provide the land for this system only for the trial.

B. Most of the poor people only were agree with this idea.

Denied to install62%

Agree to install38%

8 Gram Panchayats

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5. Selling/cost price of natural dung and manure:- For selling price of natural dung-

Examined 10 seller of natural dung. Examined 8 buyer of natural dung. Measured self one trolley of fresh natural cow dung.

For selling price of manure – Examined 3 sellers of the manure

Note: The rate for the natural dung is calculated as given below-

Measurement of weight of one trolley filled with fresh dung

Weight in Kg.When trolley filled with dung and adjoining Tractor 5025When trolley emptied and adjoining Tractor 2860Net weight of Dung 2165Rate of one trolley dung 650 Rate per Kg. Dung in Rs. 0.30

According to above table it is clear that the price rate of natural dung is Rs. 0.30/Kg. The rate of one trolley filled with dung is taken from following table.

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The rate of one trolley filled with dung is calculated on the average basis-

Calculation of price one trolley filled with Dung Rate of trolley in Rs.Place where the Dung is available Ramdev gosala 640Pathmeda gosala 620Bobas gosala 700Different 7 other seller 650Different 8 other buyer 650Rate per Trolley in Rs. 650.56

So it is clear from the above table that the price of one trolley filled with dung is available at the rate at Rs.650/-

The rate of the manure per Kg. is calculated as followings:

Calculation of price of Manure Per Kg.Availability of Manure At- Manure Price per Kg.Ramdev Gosala 0.6Rajasthan Go Seva Samiti 0.5Pathmeda Gosala 0.6Average price Rate in Rs. 0.57

So the above table showing that the price of manure is Rs. 0.57/Kg.

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Analysis about the Organic fertilizer and Manure:

During the survey I examined with 105 farmers those are using the natural dung for the farming. I asked to them about the manure and its utility and power. Following results came out after the analyzing the data.

I. 8% farmer given negative answer that during the biogas processes the natural dung loses its power during the entire process.

II. 4% farmers don’t know about the manure and the fertility power of the manure.

III. 16% farmer not agrees due to higher cost as compare to natural dung.

IV. 72% farmers are agree to buy it and they know the fertility power of the manure

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Don't know about manure

4%

Agree to purchase 72%

Not Agree to buy16%

Negative answer8%

105 Farmers

Availability of the natural dung: The availability of the natural dung is huge. There are near to 700 registered Gosalas and near to 700 unregistered also. So the availability of dung is not a big issue. There is large no. of cattle in Rajasthan (5.4 million).

Analysis about the vermicompost: During the survey I found out to two Gosalas where the vermicompost is prepared. It is just a normal process in which they were using natural cow dung for vermicompost. Followings are the findings related to vermicompost.

The whole process takes 2 to 2.5 months starting from natural dung to vermicompost.

To increase the level of the nitrogen in the vermicompost they are mixing the urine of cows and the powder of seeds of Azadirachta Indica (Neem).

The conversion ratio of the natural dung to the manure is 5:3. The rate of vermicompost is Rs.3/Kg. in the market. They are selling this vermicompost to the outlet or the shop.

The rate of vermicompost is too high, that’s why farmers are purchasing in less quantity. Farmers are using this vermicompost to sowing of the vegetables, fruits and for other organic farming.

The average rate of using this vermicompost is 5 Kg. in 100 square foot.

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Some technical facts about the natural dung and manure: Fresh dung contains 80% moisture.

One tonne of fresh dung gives 0.2 tonne of dry dung. One tonne of fresh dung gives 240 kg. Of manure. Manure contains 1.6 % Nitrogen. One tonne of fresh dung gives 3.84 kg. Of Nitrogen. Manure contains 1.55 % Phosphorous. One tonne of fresh dung gives 3.72 kg. Of Phosphorous. Manure contains 1 % Potash. One tonne of fresh dung gives 2.4 kg. Of potash. Fresh dung contains 16 % organic solids. Digestion in a bio-gas plant converts 40 % organic solids to gas. One tonne of fresh dung after digestion gives 96 kg, of Humus.

6. Analysis about the Organic fertilizer and Manure :

During the survey I examined with 105 farmers those are using the natural dung for the farming. I asked to them about the manure and its utility and power. Following results came out after the analyzing the data.

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Don't know about manure

4%

Agree to purchase 72%

Not Agree to buy16%

Negative answer8%

105 Farmers

V. 8% farmer given negative answer that during the process loses its power during the entire process.

VI. 4% farmers don’t know about the manure and the fertility power of the manure.

VII. 16% farmer not agrees due to higher cost as compare to natural dung.

72% farmers are agree to buy manure and almost 95% farmers know the fertility power of the manure

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Competitor’s Analysis:In the competitor’s list I found out only one name that is “Foundation for the Ecology Security (FES)”

Traditional Biogas Plant manufactured by the FES:

The traditional biogas manufacture by them is starting from 2 meter3. And the cost of it is Rs.18000 to 25000/- thousand. For manufacturing the biogas plant and they appoint their worker. The whole work is done in the supervision of them. They are not providing any subsidy to the households. They work only in their operational areas. They help to the beneficiary to availing the subsidy of Rs.8000-9000/- , and also provide technical support.

I personally have seen and recorded the 15 biogas plants installed by them are working effectively and efficiently in a village, those plants were installed 10 years ago.

The beneficiaries are too much happy to installing those plants and are agreed also for installing sintex’s domestic biogas plants.

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Sintex’s Domestic Bio Gas Plant: When the Sintex will launch the

Domestic or family type biogas plants, then Sintex will face followings hurdles. These Expected hurdles for company in installing the biogas plant are followings:

1. Large Onetime payment: The farmers have to pay more than Rs.19000/- if they want to install a bio gas plant. This does not include the transportation and installation cost. The farmers have to have a saving with which they can pay. This product is used to replace the use of LPG which they pay monthly. The farmers find it easier to pay the price for LPG than pay the Rs.11000/-one time. So the problem is to find a way to make them pay for the Bio Gas Plant by substituting the payment made for LPG to paying for the Bio Gas Plant.

2. Lack of Knowledge: Some farmers know the existence of a Bio Gas Plant but they do not know cost saving and utility of it. They need to be educated and shown the benefits in simpler terms and clarify every doubt.

3. Availability of bio gas plant: The Bio Gas Plant cannot be sold at shops at village level because of their size, security of payment, questionable return and acceptance by sellers to sell it. This products also will not receive demand from the buyers to come forward and but it because they do not know the benefits without which it will not stir a demand rush.

4. Security for the buyers: the buyers may be interested to buy the Bio Gas Plant but they will hesitate to invest Rs.19000/- and take a risk about the efficiency. Breaching this security problem is a must.

5. Convincing the efficiency of Bio gas Plant: The cemented bio gas plants have had a bad venture and around 90% have been shut down. This image of Bio Gas Plant has become a bottleneck about the performance of Bio gas Plants. To overcome this way to make them easier to invest and brining to light the price rise of LPG is a must.

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Following table shows that how many people benefited by the subsidy. Data are collected from the 3 district in Rajasthan regarding to traditional biogas plant that how the people

benefited by the subsidy. Beneficiaries classified by availability of bank loan

No. of beneficiaries surveyed 615 -

No. of beneficiaries applied for loan

63 (10.2%)

No. of beneficiaries sanctioned loan

62 (10.1)

No. of beneficiaries denied loan

1 (0.1)

[Data are taken from Programme Evaluation Organization Planning Commission Government of India New Delhi May, 2002]

Solutions:

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The solutions have been made with the above analysis. The solutions have been made with certain objectives in mind, such as:

1. Removing onetime payment. (Financing)2. Entry strategy.3. Market segmentation.4. Selling strategy.5. Service and reviewing6. Advertizing Strategy.

1. Financing: There are many people who can make complete payment at one time for the installation of biogas plant. But there are also many people who cannot make complete payment at one time. To remove this hurdle, I believe financing the Bio gas Plant will help the villagers acquire the Bio Gas Plant easily. It will also help to:

A. Remove the risk of making onetime payment without the risk of product failure.

B. Remove the burden of huge onetime payment.C. It will also help in replacing the LPG refilling cost with biogas.D. Create interest among uninterested people (monetary problems).

Hurdles in financing for the costumer: The successes of any product are also affected by the availability and easy financing of the product. If company assure to the customers for the financing then they can think about the product. Followings are the hurdles which can be faced by the customer at the time of installing the biogas plant.

1. Subsidy from NABARD gives Rs.8000 to 10000/- subsidy for Biogas plant. Generally people face many problems to avail the subsidy due to lack of knowledge.

2. The process of availing subsidy is too long and complex. Generally it takes 2-3 months and also there are always too many efforts. Sometimes people get disappointed due to the long process and the complexities and do not try to avail it anymore.

3. To avail this subsidy people have to first buy the product then apply for the subsidy through the Gram Panchayat secretary. And thereafter secretary forward it for further process, and it takes long time, so long time consuming always irritate to the customer. Some time the Gram Panchayat secretary or authorized person delay in forwarding or distributing subsidy for their personal interests. The process generally takes 2-3 months. Following policies can be adopted by the company to avoid these types of complexities.

A. Company can create awareness among the people

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B. Company should hire knowledgeable salesman, who can help of people.C. Company should appoint a professional area wise who will perform only financial

tasks.D. Company should tie up with the rural and Gramin banks so that customer does not

face above these difficulties.

If the company tied up with the rural banks, with the Gramin banks, and agro banks than customer will make payment in followings ways and the banks will also get benefits in following ways.

Security issue for the bank giving loans: The Banks require loan security and are often in the form of mortgage. This becomes a security concern for the farmers. The source of income of the villagers is also not secure because they don’t have PAN cards that show their income statement, so the security is just verbal. Sources of income of the villagers, consistency, and liability that is required.

4. EMI size, time system:

1. The Gramin Banks or Co-operative Banks will make a full payment for the Bio Gas Plants but have the Bio Gas Plant sales deed withheld till full payment by customer to the bank.

2. The Bank will then collect the Subsidy with the sale deed. The subsidy will become a security for the loan.

3. The Pay Back period of a Bio gas Plant is near to 24 months, so the EMI payment time will be 24 months.

4. The EMI should not that much higher to the price of monthly LPG consumption it replaces.5. After the full payment by the customer the Bank should avail the subsidy returned to the

customers with interest.6. Here the Bank gets their security and earns interest for the security deposited in the form

of Subsidy. The Household also replaces the use of LPG with the use of Bio Gas without any extra payment.

The banks that can be tied up to are:

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1. Rajasthan Gramin Bank.2. MGB Gramin Bank, Pali Marwar.3. Mewar Anchalik Bang, Udaipur.4. BARODA, Rajasthan Gramin Bank (AMALGAMATED REGIONAL RURAL BANKS).5. Rajasthan State Co-operative Bank.6. State Bank of Bikaner and Jaipur.7. Jaipur Nagaur Anchalik Gramin Bank.8. Panjab National Bank Gramin Bank (AMALGAMATED REGIONAL RURAL BANKS).9. Hadoti Kshetriya Gramin Bank.10. Jaipur Thar Gramin Bank.11. Marwar Ganganagar Bikaner Gramin Bank.

The selling of the tie up plans is as follows: The agriculture and the rural bank providing the agriculture loan on the basis of Kishan Credit Card and the interest rate is 7% per annum. In the following structure the bank and company can tie up.

Note: The rate of different sized biogas plants are expected or imagined.

For 3 Cows

EMI Structure For 1 yearFor 18

Months For 2 year

Price 19000 19000 19000Subsidy 8000 8000 8000Price after Subsidy 11000 11000 11000

Interest Rate of Bank 7% 7% 7%Interest Amount 770 1155 1540Total Amount 11770 12155 12540

EMI's Per Month 980.84 675.28 522.5

For 7 Cows

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EMI Structure For 1 yearFor 18

Months For 2 year

Price 20000 20000 20000Subsidy 8000 8000 8000Price after Subsidy 12000 12000 12000

Interest Rate of Bank 7% 7% 7%Interest Amount 840 1260 1680Total Amount 12840 13260 13680

EMI's Per Month 1070 736.67 570

For 15 Cows

EMI Structure For 1 yearFor 18

Months For 2 year

Price 25000 25000 25000Subsidy 8000 8000 8000Price after Subsidy 17000 17000 17000

Interest Rate of Bank 7% 7% 7%Interest Amount 1190 1785 2380Total Amount 18190 18785 19380

EMI's Per Month 1515.83 1043.61 807.5

Entry Strategy:

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1. According to sample, more than 90% of the rural household has cattle. They use Bio Fuels like wood, kerosene and Dried dung which is cumbersome to attain because it requires extensive manual labor. Also, 95% of those who were not using LPG were thinking of Installing LPG usage. So these people can be convinced for the portable biogas plant. The supply of LPG and kerosene is also limited and also occurring in unlawful ways(black)

2. The Transportation of LPG is not efficient, paving a way for a consistent alternative.

The data shows that there are 34890 villages (according to the census 2011) and the average number of households in an average village is 250-300. Thus the number of household is 87, 22,500 taking an average low of 250. Since the average households having cattle is 90%, the market size is 78, 50,250.

Market Segmentation:

The product sold is best broken down into smaller segment so that there is no overlap in target. To do this certain element has to be considered:

1. Segmentation according to Gas usage/requirement.2. The number of cattle held.3. The segments should not overlap.

Overlap means if there are there Products X, Y, and Z which are meant for 3 cows, 5 cows and 7 cows respectively. If product X is suitable for 100 households, Y is suitable for 20 households and Z is suitable for 100 households. So the product Y has very low return comparing with Product X and Z. We know that the amount of energy usage increases more than it decreases. Also, if the Households using product Y is sufficient with the usage of X then they are best given Product X and if their usage is prone to increase they are best given product Z.

Looking at the number of cattle per house hold they can be broken down into the following:

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1. 3 Cows: Most of the households have 3 cows.2. 7 Cows: Another group is those who have 7 cows per household. They may

have 6 cows but they either require 7 cows output of energy or can attain 7 cows size of input.

3. 10-15 cows: these are few in number but grouping them as 10 – 15 is necessary because some household require huge amount of energy and have the resources.

Marketing Strategy for the Biogas Plants:

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In marketing of the biogas plant I analyzed that there should be personal selling. There are many reasons to adopting the personal selling for targeted market. The main reason for non interest of buyers is that they are unaware of it. They do not know the benefits and require a means of educating them. So the best way to overcome this is by using Personal Selling. The followings are the benefits of doing personal selling of the product-

1. Benefits from the Consumers point of view:

A Salesman can explain better about the product.

He / she can reply to all the queries of the customer.

He/ she may also give a demonstration of use and also explains to them the

precautions they should take while using the products.

By using the personal selling the communication gap can be reduced or delete.

He / she will help in providing customer care.

Salesman will also gather feedback.

2. Benefits to Company:

A salesman increases the sales and expands the market by identifying new

customers and persuading them to buy the products.

Our product is for selected market, the salesman identifies the potential

customers. He will explain to them using literature the composition of the

product, how it is operated and so on. Here person to person contact will help

in selling the product and not advertising.

He / she create more and more regular demand thus makes planned and

regular mass production possible.

A salesman finalizes the deal. He settles terms and conditions such as payment,

delivery etc.

Problems in selecting a salesman for rural areas:

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Image of salesman in villages: the image of the key seller plays a major role in the selling of the product. The system of villages is community based. So the group or the community that does not like to that person may not buy the product, especially when he is trying to introduce and convince them to accept a new product. So it may affect the sale of the company. When appointing a salesman over the area wise company should consider this matter.

The sales man should also have the knowledge about the village to avoid problems like cultural, behavioral, language and people to people.

Solution: for this problem the solution is that company should appoint salesman from the nearby villages or someone with knowledge of the village. In this case the first image the salesman creates becomes the image. So the selling becomes dependent on the efficiency of the salesman and other factors are minimized. Also the sales man should be from a surrounding area to avoid the relate ability gap

4 A’s Approach of Rajasthan Rural Market

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The rural market may be appealing but it is not without its problems: Low per capita disposal incomes that are half of the urban disposable income. Large no. of daily wage earners, acute dependence on the vagaries of the monsoon, seasonal consumption linked to harvests and festivals and special occasions, poor roads, power problems, and inaccessibility to conventional advertizing media.

However, the rural consumer is not unlike its counterpart in many ways. The Sintex Industries should meet the consequent 4 A’s challenge.

Awareness. Availability. Affordability. Accessibility

1. Awareness: Creating the product awareness is most important task for Sintex Industries. The family type portable biogas plant is new for its future market (which is Rajasthan). The rural consumer has the same likes as the urban consumer like music and movies, and for both the urban and rural consumer, the family is the key unit of identity. However, the rural consumer expressions differ from the urban. Outing for the farmers is confined to local fairs and festivals and TV viewing is confined to the state owned Doordarshan.

So the awareness plays a major role in success of any product. Sintex’s portable domestic biogas plant has all the good features, but in case of low or inappropriate advertizing/awareness policy can affect its success very badly. So it is very necessary to adopt an appropriate advertizing strategy. Followings are the instruments these can be use for advertizing, publicity and awareness

Doordarshan. All State Radio/FM. Wall painting. Folk Art Form. Local Idiom. Fair/exhibitions. Video –on- Wheel. Booklets. Manuals. Newspaper etc.

Doordarshan: During the survey, many farmers also questioned, there is such type of biogas we have not seen ever this system. Many aware farmers daily see the Krishi Channels. The most famous Krishi Channel in Rajasthan is “Krishi Darshan”.

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Wall paintings: Wall paintings can be done on roadside building and walls and due to its long durability it will affect and attract to the people.

Local Idioms: Local idioms also can be a part of the adverting of biogas plant, because the rural people’s most of talks are dependent on the idioms.

Fair/Exhibitions: In village fair or in any religious fair, there is always a huge crowd gathering. So Sintex should give the demonstration of the family type biogas plant. It will more convenient way to advertize to the family type portable biogas plant.

Newspaper: Newspaper can play a vital role in the advertizing of the family type biogas plant, because in the present time the newspaper reaches almost at every house, at every tea stall and every shop. And at tea stall like places the rural people always like to disuses new issues comes in trend. So Sintex should adopt this policy also for their advertizing. Every newspaper publishes one additional page for the area specific. So itself having some features of a salesman.

Pamphlets and Booklets: some pamphlets and booklets can be distributed in the area specific in their language, by the newspaper hawkers.

All State Radio/FM:

2. Availability: availability of the product is also affects the success of the company. So the availability of the biogas plants and the manure should be such type that customer do not face any problems. The store should be according to the area wise. Sintex Industries can adopt the indirect distributional channel for that. There should only one mediator (agent), according to the area. Because it is not possible to deliver the good directly to the customers, and if Sintex involve many mediator then it will add some more in the cost of biogas plant.3. Affordability: The distribution of the income in rural area is unequal. Most of them are dependent on the agriculture. So the affordability of the biogas plant is also most important issue for the Sintex. The affordability system is suggested in the financial part of the solution.4. Accessibility: The main primary objective of the Sintex industries is to make accessible to the family type biogas plant by the almost every rural households in Rajasthan. And the accessibility of the biogas plant is depending upon the availability of the dung. So Sintex can sell the dung to them, those don’t have the livestock. So Sintex can also provide the dung for the easy running of the biogas plant in the rural areas. If people install the biogas plant and want to run it by purchasing the dung then per day cost of

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dung for them will be Rs.10.5/- and this amount can be paid by everyone. The related calculation is given followings.

Calculation, related to selling/providing the Dung

The cost of the one trolley dung 650fare of the tractor 300wage to worker 150Total cost 1100Weight of trolley 2127Cost per kg. 0.51716032If the Selling price of Dung per kg. 0.7Per day cost of dung for Customer Min. requirement for 1 meter3 sized plant. 15Total cost for customer/ day in Rs. 10.5Monthly cost in Rs. 315 Selling price of one trolley 1488.9Net Saving every day 388.9Net profit/month for the supplier 11667

35 households those don’t have the cattle, were analyzed. They were said to run the biogas plant by purchasing the dung, their responses were following.

Agree to buy 77%

Not Agree23%

30 Household those dont have cattle

So, it is raveled by above data that providing/selling of the dung is also profitable as Rs.11667/- per month, which is huge amount for any unemployed person in the village.

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So, the Sintex can make accessible to the biogas plant for non cattle having families.

New Venture35

Sintex can also consider the biogas bottling plant as its new venture. The cost of the biogas bottling plant and digester system is near to 80 lakes. And subsidy provided by the MNRE is 40%.Following is the table in which the profit and the payback period are calculated.

Profit and Payback period calculation of the Biogas bottling PlantParticulars Rs.Cost of the Biogas Bottling Plant 8000000Subsidy from MNRE 40%Subsidy in Rs. 3200000Cost after subsidy 48,00,000Productions:-Purified Gas /CNG in Kg. per day 170170 Kg. Purified Biogas is Equivalent to Rs 5,040 of CNG or Rs 7, 200 of commercial LPGSo per day income from Gas in Rs. 7200Monthly Income from Biogas 216000.0Production of Manure in liters per day 20000Monthly Income from manure 135000

Total monthly income3,51,000.

0Total annual income 42,12000Total annual expenditure including maintenance and Dung approx 20,00000Annual Net profit 22,12,000Payback period 2.17

Note:-1. The figures are taken from the MNRE. 2. 170 Kg. Purified Biogas is Equivalent to Rs 5,040 of CNG or Rs 7, 200 of commercial

LPG according to MNRE.

So, the Sintex can also think about the Biogas Bottling Plant. And the manure produced by the plant is can be exported. And for the dung Sintex Industries can get contracted with the big Gosalas on the time basis. At present a biogas bottling system is working in Maharashtra, and government of India is also wants to install 8 new bottling plant in 8 state including Rajasthan.

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Recommendations:Finally, after having analyzed the findings in some detail, we are in a position to make a few suggestions as to the actions to be taken towards the launching the family type portable biogas plant in Rajasthan.

Sintex should give a multiday ad in newspaper or T.V.

Sintex should give demonstration at highly crowded areas.

Sintex Industries should tie up with rural and agro banks.

Should tie up with insurance companies.

There should be personal selling.

Salesman should be from nearby areas.

Sintex should appoint middlemen, between bank and customers, those can help the customers.

After sale service should be good.

There should be contract between the Gosalas (dung providers) and Sintex Industries for provide dung who don’t have cattle.

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Bibliography:1. www.google.com 2. www.mnre.in 3. www.indg.in 4. www.nabard.org 5. www.census2011.co.in 6. www.fes.org.in

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