JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 1.0 EXECUTIVE S UMMARY The purpose of this business plan is to raise US$ 60,000 (UGShs 210 million) from a renewable energies funding source. Jos G!""n T"#hnoloi"s %&' is a Ugandan-registered Bio Energy (or renewable energy) investment companythat specializes in the manufacture of Bio ass Bri!uettes fuel which is also "nown as white coal (charcoal) in the industry. The Bio #uel is produced from agro waste and on burning it does not create pollution. Jos G!""n T"#hnoloi"s %&' see"s to apply the re!uisitioned funds to ac!uire additional machineryerect and e!uipment for processing fuelits bri!uettes and coo"ing stoves$ovens% additional structures on the current production site% ac!uire one transportation truc"% and &nance wor"ing capital re!uirements for raw material inventories and operating costs of the enterprise.
1.1 sin"ss *!o+l"
Biomass% an energy-producing source% is used principally in the form of &rewood and charcoal. 't currently provides about * of Uganda+s consumed energy. 'n agricultural-based countries li"e Uganda however% there is a vast natural supply of biomass found in the form of agro and forest residues. ,ften these residues are simply burned in the &elds this is not only a waste of an energy source% but it is also a cause for pollution in local regions. Joss aim is to transform Uganda+s agricultural waste into bri!uettes. Besides reducing the increased eploitation of Uganda+s primary forests% bri!uettes also have a low production cost% which means they would be cheaper than &rewood or charcoal. They can be used in already eisting stoves and have a longer burning time because of their density and low moisture content. /s a result% sales of 0123%14 or 56 tons are epected from the &rst year of operation.
The bri!uettes will be made out of charcoal-dust and dry agricultural wastes% sugar cane trash (bagasse)% and maize trash from farmers. 7imple technologies will be implemented to ma"e it less epensive to produce bri!uettes. Thus% the bri!uettes will be a8ordable by the local population. Today% 5.36 million people in the country still use &re wood and wood charcoal for their coo"ing needs% this population is a sizeable mar"et for charcoal bri!uettes. 5
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
1.2 sin"ss %o#&ion The Jos G!""n T"#hnoloi"s %&'-s bio-fuel bri!uettes and energy-saving coo" stoves production (industrial) facility is located at ,chieng 9one opposite :;ovu Estate at :ansana town in
ampala city centre along the >ampala ? @oima road. The head oAce of Jos G!""n T"#hnoloi"s %&' is situated at :amuli oad at Bu"oto behind >abira Country Club% :amuli 9one found in :a"awa =ivision in the eastern suburbs of >ampala city.
1. sin"ss /"#&i" To provide a 3-year operating plan for the bri!uettes and energy-saving stoves business focusing on 'ncreasing bri!uettes production (sustaining demand) from current 64 pieces of honey comb bri!uettes per day each weighing 1.3 "gs e!uivalent to 152 "gs. To diversify bri!uette shapes to cater for all mar"et segments that is produce stic" bri!uettes and pillow shaped bri!uettes. 'ncrease on production of customized bri!uette stoves to create bigger mar"et to bri!uettes •
•
•
•
•
•
•
•
•
To guide and lay strategies of for accessing the feedstoc" for sustainable bri!uette production as well as stove ma"ing. To upgrade our production facility and have our products certi&ed by the Uganda Bureau of 7tandards (UB,7). 'ncreasing sales of bri!uettes of various shapes li"e honey comb% stic" and pillow shaped by sensitizing users and mar"eting through mar"eting materials D branding. =evelop new products of pillow bri!uettes% brooding "its and stic" bri!uettes within the net two years and ac!uire basic processing e!uipment for Jos G!""n T"#hnoloi"s %&' for improved !uality and eAciency. /c!uire bigger land and establish commercial production sites (factory) in
1.3 Th" T"m 1
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN The anagement team is comprised of /siimwe 7amuel% :inshaba Fonnah and ugisha Brian. The anagement team is a highly motivated% eperienced and well-!uali&ed out&t of young goal-driven Ugandans. The team is strongly positioned to ta"e advantage of this opportunity. Jos G!""n T"#hnoloi"s %&' (Jos) is thus led by a committed management team of three shareholders% who hold 3* of the shareholding e!uity and three () board positions. The company (Jos) itself holds a 3* shareholding e!uity sta"e in the company as an individual business entity.
1.4 5n's R"i!"' / total investment of US$ 60,000 is being sought as pro;ect recapitalization &nance to be used mostly for capital assets ac!uisition to scale up and epand Jos G!""n T"#hnoloi"s %&'s fuel bri!uettes and coo" stoves output and sales capacity. The re!uired pro;ect funding will be spent as followsG •
•
•
•
•
US$ 3,140 (UShs 13.4 million ) will be spent on construction of additional building$production structures at Jos G!""n T"#hnoloi"s %&'s current production site. US$ 7,180 (UShs 27.6 million ) to be used to purchase and install new primary and fuel bri!uette processing machinery and e!uipment including an press% automated piston etruder% roller press% automated double honeycomb an automated mier and small tools. US$ 206 (UShs 0.70 million) to be used to ac!uire a spray gun and grooving machine that are used in the manufacture of coo" stoves. US$ 11,30 (UShs 30.0 million ) to be used to ac!uire one transportation truc" for transportation of raw materials from the raw material source areas and movement of manufactured fuel bri!uettes to the designated sales outlets in >ampala. The balance of US9 4,340 (UShs 123 million ) to be applied as wor"ing capital consisting of plant machinery and e!uipment installation charges% ma"ing payments for pre-operational epenses and contingencies% covering the payroll costs for sta8 during the &rst two months% and defraying the raw material cost of purchasing biomass% charcoal dust and binders from the various suppliers in Uganda.
1.6 *!o'#&ion *ln
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN There will be an initial production of 56 tons of bri!uettes during the &rst year of operation. This will average 1.31 tons of bri!uettes per day. / "ilogram of bri!uettes will be sold at 1 cents and generate sales revenue of U70 123%14. Hroduction during the second year of operation will increase by 53* to a level of 5%233.I tons of bri!uettes. 'n order to meet the increased production limit that year% wor"ing hours will be increased. /s the mar"et focus is etended around >ampala% the company will realize U70 14I%6 of sales revenue during the second year. 'n the third year of operation% the pro;ect will produce 5%154 tons of bri!uettes a production increase of 2* with sales revenue of U70 1%2. 'n 125J% Jos G!""n T"#hnoloi"s %&' intends to epand its business to incorporate more outlets using eisting charcoal vendors and supplying to the tourism and the hospitality industry. Jos G!""n T"#hnoloi"s %&'s target is to sell 5%32 tons of bri!uettes for 1212.
1.8 Th" M!:"& Carbonised bri!uettes can act as a replacement for charcoal for domestic and institutional coo"ing and heating% where they are favoured for their nearsmo"eless use. 'n comparison to charcoal% they generally burn for longer and have a more consistent heat output% which is preferred by certain mar"et segments such as restaurants% hospitals and schools. Houltry farming is a large industry in Uganda and smo"eless% longer burning bri!uettes are also well suited to heating cages overnight when temperatures are low as a cheaper alternative to electric heating lamps.
Jos G!""n T"#hnoloi"s %&'. will select ten wood charcoal vendors in the seven (I) large and well-"nown mar"ets around >ampala. They will be as"ed to try the Joss biomass fuel bri!uettes and energy-eAcient stoves. The selected charcoal vendors will then sell the bri!uettes to households% chapatti (panca"es) businesses% restaurants% and hotels. The mar"et end-users of bio fuel bri!uettes in Uganda includeG households% chapati businesses% restaurants and hotels% boarding schools% poultry farmers and hospitals in both urban centres and some of the rural areas. These are the highe st consumers of charcoal. Jos G!""n T"#hnoloi"s %&'. also intends to approach tourist lodges in the national par"s because they are very "een to see an alternative to wood charcoal% especially the FK' (Fane 4
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN Koodall 'nstitute)%
1.7 M!:"&in S&!&"; #lyers and posters will be made. They will have printed instructions for lighting the bri!uettes and estimating their burning time. The Lyers and posters will be an educational tool% with both &nancial and environmental advantage. They will be distributed to the selected vendors% will hand them out toG!""n clients Tas they buy the%&' bri!uettes. will attend ehibitions li"e the Energy
1.< *"!sonn"l *oli#;
1.10 5inn#il *"!=o!mn#" The total capital investment cost of the proposed epansion and scaling up of the Jos G!""n T"#hnoloi"s %&' (Jos) bio-fuel bri!uettes and coo" stoves production enterprise is US$ 81,374. ,ut of this total capital investment cost% US9 7,481 (55.*) is the value of the eisting site land US9 3,140 (3.65*) will be used to construct additional site building 3
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN infrastructure US9 7,300 (55.I3*) will be used for the purchase of bio-fuel bri!uettes and coo" stoves manufacturing plant machinery and e!uipment US9 11,30 (53.*) will be spent on purchasing a transportation truc" for collecting raw materials and moving products to mar"et and US9 4,340 (4.3*) will be spent as wor"ing capital comprising of plant machinery installation and commissioning costs% raw material purchase &nance (start-up inventory)% as well as contingencies and pre-operational epenses. The bio-fuel bri!uettes and coo" stoves production enterprise is to be &nancedUS9 through The :HM is % 7.<> '"& and 16.08> "i&; around at a discount factor of 5I*% with .an 'pro;ect of 172.0<> 342,330 paybac" period of 5.J years and Brea"-even capacity utilization of 12.I*. The legal status of this business is proposed as Nimited iability Company+.
The pro;ect composite bio-fuel bri!uettes and coo" stoves sales turnover to increase from US9 436,38 in the &rst year ( *!o"#& Y"! 2 ) t o US9 787,301 in the fourth year (*!o"#& Y"! 4 ). ,ut of these amounts% pre-ta pro&ts (operating pro&ts) incre ase from US9 12,661 in Hro;ect Oear 1 to US9 40,2< in Hro;ect Oear 3.
elevant ratios such as the percentage of net pro&t to total sales% return on e!uity and return on total investment show promising returns (efer to S#h"'l" 13 on pages ? 4).
'nvestment cost and income statement pro;ection are used in estimating the pro;ect paybac" period. The pro;ects will paybac" fully the initial investment in 5.J years (efer to S#h"'l" 1 on page 1).
Ultimately the attractiveness of our venture lies with the fact that customers will choose our bio fuel bri!uettes and high energy-saving coo" stoves above those of competitors because of their !uality and price a8ordability. @ence Jos-s ongoing initiatives will be to drive sales% mar"et share and productivity so as to provide additional impetus towards attainment of the corporate goals and ob;ectives.
J
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN :,TEG /ll currency &gures in this plan are in U7 =ollars (U7=).
5i!" 1? *"!=o!mn#" @ihlih&s (*Y2 *Y4) 7ales
Kross argin
:et Hro&t
22%222 622%222 I22%222 J22%222 322%222
US$
422%222 22%222 122%222 522%222 2
*2Y
*Y
*3Y
*4Y
1.11 %o#l So#il ImB#& o= &h" sin"ss *!o'#&s o! S"!i#"s 1.11.1
Environmental B enet
'n order to ma"e one ton of charcoal% ten tons of wood is burned. This eplains why Uganda+s natural forests are being depleted at such a fast rate. #or every one ton of agro-waste% 22 "ilograms of bri!uettes is realized. The manufacture and use of technology in the bri!uette industry will reduce eploitation of the forests for fuel wood. The tree resources are very crucial for maintaining the environment they preserve the environment and endangered species support both rural and urban communities and lower carbon and greenhouse gas emission. ,n the Lyers and posters% additional information on environmental education will be conveyed to prospective clients. This will increase awareness of environmental issues. @alf of the Lyer and posters will be printed in indigenous languages li"e >iswahili% uganda. 1.11.!
So"io#E"onomi" Benet I
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
Jos G!""n T"#hnoloi"s %&' (Jos) bio fuel bri!uettes and energy-saving coo" stoves production enterprise will de&nitely deliver a range of positive socio-economic impacts to Uganda which can be highlighted as followsG Fob opportunities are created through plant installation% operation and maintenance. #uel security is improved% thus increasing social security and the welfare of the local community. The burden of collecting fuel for both women and children in rural •
•
•
•
•
• •
•
areas of Uganda is reduced. The health of women and children are improved by replacing polluting fuels with cleaner fuel for coo"ing. 'ncome is generated for the community from the collection and sale of bio mass raw materials such as bagasse and maize cobs. The currency of fossil fuels such as "erosene is reduced. The industry created from the manufacture of bri!uettes contributes to the growth of the country+s K=H. @ard currency is generated from carbon &nancing e.g. as a Clean =evelopment echanism (C=) pro;ect% it can generate saleable credits. 1.11.$
Ne%ative Im&a"t
Bri!uettes will directly replace a percentage of wood and wood charcoal.
1.12 ";s &o S##"ss Jos G!""n T"#hnoloi"s %&' has identi&ed several "eys to success that will be instrumental in creating a sustainable business. 'f these "eys are followed% the li"elihood of success will signi&cantly increase. 5. ,8er bio fuel renewable energy solutions that are demanded by customers. 1. Ensure all of the solutions hav e economic considerations built into the respective models. . ,nly provide 522* customer satisfaction. /ll customers must have their epectations eceeded. 4. Establish and build relationships and trust with customers to help shield from future competition. 6
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 3. Epand rapidly to control the mar"et. J. ,8er reasonable prices. I. Ket investment.
1.1 Mission PTo provide unparalleled services to organizations $&rms $governments $individuals with developmental pro;ects that enhances sustainable environmental conservation and improved livelihood.Q
1.13 Vision P/ successful Company $ business with Ecellent Customer 7ervice and loyal Customers following translating into top sales for !uality energy saving coo" stoves% charcoal bri!uettes% biogas digest ers% e!uipment% agricultural products% D services in the prosperity of environment management.Q
2.0
*UR*/SE /5 T@E 9/CUMEDT
The ob;ective of this Business Hlan is primarily to inform the primary pro;ect promoters ? being Jos G!""n T"#hnoloi"s %&' as well as its prospective renewable energy investment partners about the basic pro;ect operation and business performance indicators that will facilitate the assumption and implementation of "ey decisions to &nance and roll out bio mass fuel bri!uettes manufacturing enterprise based on the huge availability of agrowaste and charcoal dust in Uganda. This Business Hlan also forms the basis of an important investment decision and in order to serve this ob;ective% the document$study covers various aspects of pro;ect concept development% start-up% and production% mar"eting% &nance and business management. The document also provides some sector information and domestic mar"et scenarios% which have some bearing on the pro;ect itself. The purpose of this document is also to facilitate the main pro;ect investors with information on the aspects and advantages of investing in bio fuel bri!uettes processing and domestic mar"eting by providing them with a macro and micro perspective of the dynamics of bio-mass based renewable energies mar"et in Uganda in the hope that the information provided herein will aid potential investors in crucial investment decisions.
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN This report is based on the information obtained from industry sources as well as discussions with mar"et place players. 'n the &nancial model% since forecast$pro;ections relate to the future periods% actual results are li"ely to di8er because of events and circumstances that do not occur as epected.
.0
IDTR/9UCTI/D ACGR/UD9 .1
iomss *oli#;
The most recent government strategy relating to biomass use is reLected in the Renewable Energy Policy 2007 % which is an etension to the wider Energy Policy for Uganda 2002 . ,n the topic of biomass% the policy focuses on demand-side management through thedissemination of more energy eAcient technologies (such as improved coo" stoves). ampala+s a"erere University to research bri!uette technology.
5/ll /frica% PUgandaG useveni e-/ssures Citizens ,n 7tate of EconomyQ% 11 7eptember 1255 52
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
mandate to handle householdenergy issues but highlights the following wea"nesses in governanceG •
•
/ lac" of appropriate regulatory framewor" governing the use of biomass resources% especially those on private lands. / lac" of strong enough focus on wood fuel resources in the forestry policy. / lac" of standards and !uality assurance leading to production of substandard products% lowering the adoption of new technologies
.2
Th" iomss E#onom;
The contribution of &rewood and charcoal to Uganda+s K=H is estimated at U70 46 million and U70 1J.6 million respectively (U:=H% 1255). 'n terms of employment% biomass production creates nearly 12%222 ;obs for Ugandans. :onetheless these economic activities are also accumulating signi&cant costs as a result of environmental degradation. illions of Ugandan 7hillings are estimated to be lost each year as a result of biodiversity loss and degradation of soil resources. =espite the on-going environmental degradation% it is clear that these industries represent signi&cant economic activity and any future alternative will have to &ll this gap.
.
An ABB!o#hin C!isis
The level of demand% coupled with unsustainable harvesting and poor management of forests% means that Uganda ris"s approaching something of a biomass crisis. /s a result% increased attention has been given to small1Uganda inistry of Energy and ineral =evelopment%1226 /nnual report 55
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN scale rural based bio-energy technologies such as improved coo" stoves% gasi&cation% biogas and bri!uettes. :evertheless these technologies must now be propagated on a much larger scale and across the country if the issue is to be signi&cantly addressed.
.3
!i"&&"s n' &h"i! *o&"n&il
Biomass bri!uettes are a form of solid fuel that can be burned for energy. They are created by compacting loose biomass residues into solid bloc"s that can replace coo"ing fossil fuels% charcoal heating and natural &rewood for domestic and institutional and industrial processes. Bri!uettes have the potential to be a source of renewable energy if they are made from sustainably harvested biomass or waste agricultural residues. Crops grown in Uganda such as maize% cereals% roots% cane sugar and co8ee all produce residues that are suitable for bri!uetting as does dried organic municipal solid waste (7<). =ata provided by the Ugandan government (see Tl" 1) indicates that 5.1 million tonnes of agricultural wastes are available each year and an additional 5%322 tonnes of 7< are estimated to be produced in the capital city >ampala daily. These two sources combined provide a theoretical limit which indicates that at most J* of the country+s total wood consumption and up to 32* of the charcoal trade could be replaced by bri!uettes from waste. :evertheless practical limitations such as seasonal variations% competing uses and collection signi&cantly lower the amount of raw material available for commercial opportunities. @ence% bri!uettes alone will not have the potential to fully address the approaching biomass crisis in Uganda% however they will certainly be part of the solution and there is large scope for growth from an industry that is starting from a very low base.
Tl" 1? Annl B!o'#&ion o= !i#l&!l !"si'"s A!i#l&!l Annl *!o'#&ion (F000s R"si'" &ons;"!) Bagasse 32 ice @us"s 13-2 ice 7traw 43-33 7unLower @ulls 5I Cotton7eed@ulls 32 Uganda 'nvestment /uthority% proposals for the anufacture and ar"eting of Charcoal Bri!uettes% 1252
51
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN Tobacco =ust 1-4 aize Cobs 14 Co8ee @us"s 5J2 Kroundnut7hells J Source: Uganda Renewable Energy Policy MEM! 2007
3.0
*R/JECT 9ESCRI*TI/D 3.1
*!o"#& !i"= /BBo!&ni&; R&ionl" '.1.1 Pro(e"t Brie)
Biomass% an energy-producing source% is used principally in the form of &rewood and charcoal. 't currently provides about * of Uganda+s consumed energy. 'n agricultural-based countries li"e Uganda however% there is a vast natural supply of biomass found in the form of agro and forest residues. ,ften these residues are simply burned in the &elds this is not only a waste of an energy source% but it is also a cause for pollution in local regions. 5
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
Jos G!""n T"#hnoloi"s %&'s aim is to transform Uganda+s agricultural waste into bri!uettes. Besides reducing the increased eploitation of forests% bri!uettes also have a low production cost% which means they would be cheaper than &rewood or charcoal. They can be used in already eisting stoves and have a longer burning time because of their density and low moisture content. /s a result% sales of US$ 204,2<3 (fuel bri!uettes alone) or 56 tons are epected from the &rst year of operation. '.1.! O&&ort*nit+ Rationale, Bri*ette B*-ine--e-
A
Commer"ial
Ca-e
)or
The availability of cheap (and often free) &rewood and charcoal has been part of the reason why such biomass has prevailed as the dominant source for energy in developing countries. @owever in recent years Uganda has faced signi&cant increases in charcoal prices.
5i!" 2? Ch!#ol B!i#" B"! : (2003H2011)
54
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
Ch!#ol H B!i#" B"! : (2003H2011) 5J22 5422 5122 5222 Un' Shillins 622 J22 422 122 2 1224
1223
122J
122I
1226
122
1252
1255
Y"! Charcoal price estimated cut-o8 price for bri!uetting viability
5i!" 2G /verage mar"et prices for selected goods in >ampala 1224-1255% Uganda "ureau of Statistics20#0 Statistical Abstract$Updated with prices reported for 1221255 in newvision$co$ug
'n 1226 the average price of a 42 "g charcoal sac" was U7h 53%222 (U70J) and during 122 it rose to U7h 13%222 (U7052)% an increase of JJ* in ;ust twelve months. Hrices>ampala increased substantially again in 1255% with the cost4of a sac" in the capital reaching U7h J2%222 (U7014). eanwhile% pieces of &rewood (which is estimated to substitute . "g of charcoal) were sold for U7h 1%222 (U702.6). esearch by the Uganda HK /ssociation4epects U7h 62%222 (U70) of charcoal to last 1 wee"s% whereas U7h 62%222 of HK would last for between 4 to 52 wee"s% depending on the family size and coo"ing fre!uency. #or the purpose of comparison% the assumption that bri!uettes can replace charcoal weight for weight means that U7h 62%222 could last for between 1 and 4 wee"s. These "inds of price trends are beginning to ma"e an economic case for bri!uettes which can cost between U7h 1%222 (U705) and U7h 42%222 (U705J) for a similar 42 "g sac" and often last longer than traditional charcoal. /s ofa =ecember 1255% a >enya based company% td% estimate minimum charcoal price of U70 bri!uette 2.1 (sold by the sac"Chardust at the point of delivery to urban wholesalers) as a pre-condition for the &nancial viability of a bri!uette venture in an East /frican setting. 4UHK/7% 7hortage of HK (coo"ing gas) in Uganda% www.uplgas.org% 7eptember 1255 53
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
3.2
sin"ss Mo'"l n' Vl" *!oBosi&ion
Biomass% an energy-producing source% is used principally in the form of &rewood and charcoal bri!uettes. Currently% biomass provides about * of Uganda+s consumed energy source. /lthough Uganda is an agricultural country with vast amounts of forests and trees% at the present time% the ma;ority of its agricultural waste is not being fully utilized for the production of energy.
5i!" ? En"!; #onsmB&ion in Un' (*i" Ch!&) En"!; ConsmB&ion in Un' 52*
5*
4* 3*
62*
woodfuel
petroleum
charcoal
crop residues
electricity
Source: Uganda %nvest&ent Aut'ority
'n agriculture-based countries li"e Uganda% there is a vast natural supply of biomass found in the form ofagro and forest residues. ,ften these residues are simply burned in the &elds. This is not only anunfortunate waste of an energy source% but it is also a cause for increased pollution in local regions. Uganda+s failure to transform her natural agricultural wastes into charcoal bri!uettes has resulted in anincreased eploitation of Uganda+s primary forests. Uganda+s failure to plan for ways to sustain its logging industry has resulted in forests that are currently being depleted with no plans for replacement.This ravaging of our forests is causing an even greater shortage of the woody biomass necessary forma"ing &rewood and charcoal. This 5J
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN results in the rural population having to spend increased time ande8ort in collecting biomass for their coo"ing energy needs.
Jos G!""n T"#hnoloi"s %&'. will convert the natural and available agro waste currently being burned% into auseful fuel that can go a long way in alleviating Uganda+s energy problems and increasing the availability of sustainable coo"ing fuel for consumers. There are currently only a handful of bri!uette producers in Uganda and availability bri!uettes Hart of my business aimofis the to get ahead of isthenowhere mar"et% near being mainstream. one of the &rstUganda bri!uette produces to sell to a large cross section of the domestic mar"et. This more also pre-empts a shift towards more sustainable fuels that Uganda% in the future will be forces to adopt.
3.
5n's R"i!"'
/ total investment of US$ 60,000 is being sought as pro;ect recapitalization &nance to be used mostly for capital assets ac!uisition to scale up and epand Jos G!""n T"#hnoloi"s %&'s fuel bri!uettes and coo" stoves output and sales capacity. The re!uired pro;ect funding will be spent as followsG •
•
•
•
•
US$ 3,140 (UShs 13.4 million ) will be spent on construction of additional building$production structures at Jos G!""n T"#hnoloi"s %&'s current production site. US$ 7,180 (UShs 27.6 million ) to be used to purchase and install new primary and fuel bri!uette processing machinery and e!uipment including an automated piston etruder% roller press% automated double honeycomb press% an automated mier and small tools. US$ 206 (UShs 0.70 million) to be used to ac!uire a spray gun and grooving machine that are used in the manufacture of coo" stoves. US$ 11,30 (UShs 30.0 million ) to be used to ac!uire one transportation truc" for transportation of raw materials from the raw material source areas and movement of manufactured fuel bri!uettes to the designated sales outlets in >ampala. The balance of US9 4,340 (UShs 123 million ) to be applied as wor"ing capital consisting of plant machinery and e!uipment installation charges% ma"ing payments for pre-operational epenses and contingencies% covering the payroll costs for sta8 during the &rst two months% and defraying the raw material cost of purchasing 5I
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN biomass% charcoal dust and binders from the various suppliers in Uganda.
3.3
To&l *!o"#& Cos&
The total capital investment cost of the proposed epansion and scaling up of the Jos G!""n T"#hnoloi"s %&' fuel bri!uette manufacturing enterprises is US$ 81,374 . ,ut of this total capital investment cost% US9 the value the machinery eisting company assets (including land% 11,374 (5J.2I*) buildings and civiliswor"s% and of plant and e!uipment). ,ut of the re!uired loan amount of US9 60,000% a total of US9 7,300 (55.I3*) will be used to purchase additional biomass bri!uetting and stoves manufacturing e!uipment US9 780 (2.62*) will be applied to ac!uisition of oAce e!uipment US9 11,30 (53.*) will be spent on purchase of one transportation truc" US9 4,340 (I.J1*) will be allotted to cover preoperational epenses% and a further US9 0,000 (45.I*) will be used as a start-up inventory purchase account. The pro;ect cost brea"down is given in Tl" 2.
Tl" 2? To&l Ini&il *!o"#& In"s&m"n& Cos& (UShs) S. Do. 5 1 4 3 J I
So!#" o= 5inn#" and BuildingDCivil
'nventory
Sh!" (>) 55.* I.42* 54.1* 2.62* 53.* I.J1* 45.I*
T/TA% *R/JECT 5UD9IDG
10 0. 00> >" o= To&l *!o"#& 5n'in
3.4
Jos %on To&l Ei&; 5inn#" (US9) 6%3I5 2 6%3I5 5%54 4%532 3%1 5%II5 6%422 52%5I5 2 2 2
3I2 55%42 3%432
3I2 55%42 3%432
2
2%222
2%222
1 1, 374 5J.2I*
60, 000 6.*
81, 374 522.22*
*!o"#& 5inn#il *"!=o!mn#" *!m"&"!s
The "ey pro;ect performance parameters for the Jos G!""n T"#hnoloi"s %&' fuel bri!uette manufacturing enterprise are highlighted in Tl" belowG 56
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
Tl" ? "; *!o"#& *"!=o!mn#" *!m"&"!s (US9) *IY"! Y"!2 Y"! Y"!3 7ales ,perating Hro&t Ta :etHro&t$RossS Krossargin ,peratingargin :etargin eturn on 'nvestment #ied/ssetsTurnover =ebtCoverageatio Times 'nterest Earned atio
Y"!4
34J%4I 534%6J5 51%JJ5 1%6J 62.3* 16.4* 5J.* 51.2* 5J.4 4.JI
J3%61 15%J2 155%12 54I%6J5 62.3* 3.52* 11.45* 12J.64* 15.5 I.J
IJ%IJ 5%I 25%5 152%6 62.3* 42.54* 1J.4J* 14.4* 16.IJ 55.I1
6I6%425 JI%2 32%1 143%123 62.3* 45.I* 1I.5* 4.25* .43 54.1
15.35
41.6
66.6
12.4
!":H""n *oin& (E*)?U7= 561%51J at a capacity utilization of 12.I* *;#: *"!io' (%on)? D*V & 18>? IRR?
5.J Oears U7= 431%442 561.2*
5
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
4.0
C/M*ADY ID 5/RMATI/D 4.1
R"is&"!"' Dm"
Fosa Kreen Technologies td.
4.2
Comm"n#"m"n& o= /B"!&ions
Jos G!""n T"#hnoloi"s %&' (Jos) is an integrated multi-disciplinary business &rm founded in :ovember 1251 and legally-registered in the epublic of Uganda under !"is&!&ion nm"! 16382<. The Company was incorporated on 1I th arch 125 under humble circumstances by its three () etremely passionate and enthusiastic =irectors. Though still a relatively young company% the directors have solid vision and realize their Companys good product mar"et prospects and opportunity for growth given implementation of the appropriate strategies% aided by the necessary &nances.
4.
ComBn; *!o+l"
Though the spearhead pro;ect promoters of Jos G!""n T"#hnoloi"s %&' started out from a very low capital base% it has made up for this &nancial capital limitation with its huge initiative% passion% enthusiasm and practical eperience in devising and implementing renewable energy technologies% agro-forestry pro;ects% and involvement commercial tree-planting and commercial urban agricult ure that have all transl ated into the philosophy Pthin" big start smallQ which later motivated them to have initiative% wor" hard% persist D transform Jos G!""n T"#hnoloi"s %&' into the thriving renewable energy enterprise that it is today. Jo-a Green Te"/nolo%ie- is a young enterprise engaged in providing a full scale range of environ&ental and energy solutions products and services in t'e areas of Energy Saving (oo) stoves *uel "ri+uettes feasibility studies trainings and consultancies$
12
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
•
•
/gro-processing of biomass waste into char and then bri!uettes as a renewable energy source. The production of energy saving coo" stoves customized for fuel bri!uettes. Bri!uette D Energy saving stove consultancy and advisory services so far done locally in Uganda and internationally in 7ierra eone.
4.3
Mission S&&"m"n&
PTo provide unparalleled services to organizations $&rms $governments $individuals with developmental pro;ects that enhances sustainable environmental conservation and improved livelihood.Q
4.4
Vision S&&"m"n&
P/ successful Company $ business with Ecellent Customer 7ervice and loyal Customers following translating into top sales for !uality energy saving coo" stoves% charcoal bri!uettes% biogas digest ers% e!uipment% agricultural products% D services in the prosperity of environment management.Q
4.6
Co!" Vl"s
,uality and E-cellence
Jos G!""n T"#hnoloi"s %&' strives for !uality of her products% and ecellence in service delivery so as to maimize the opportunities to ful&ll her mission.
Stewards'ip and Accountability
Jos G!""n T"#hnoloi"s %&' Board% anagement and 7ta8 are committed to being good stewards of its resources and those of its ban"ers% donors% creditors and business partners by eercising thoughtful and cost-e8ective (Malue for money) use of time% s"ills and the &nances.
Respect 15
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN Jos G!""n T"#hnoloi"s %&' is &rmly committed to empowering its Board% anagement and sta8 to live their lives with dignity and respect. This respect is also the foundation for relationships with the mar"et and other sta"eholders% such as customers% other business partners% Ban"s% =onors and Creditors.
%ntegrity
Jos G!""n T"#hnoloi"s %&' Board% anagement% and 7ta8 commit to integrating what they believe in with what they do. They will do the right things for the right reasons whether or not anyone will "now.
%nnovativeness
Jos G!""n T"#hnoloi"s %&' believe it applying innovative ideals to practice to solve energy and environmental challenges 4.8
S&!&"i# /"#&i"s
/t Jos we believe that sustainable utilization of natural resources and the environment must be at the centre of any environmental management approach and poverty reduction strategy coupled with practical technology solutions and development process.
/! s&!&"i# o"#&i"s !" &h"!"=o!" &o? each out to communities practically
address environmental% livelihood issues in their local areas% with special emphasis on energy needs% solid waste management% sanitation% and aesthetic enhancement of the environment through Bri!uette ma"ing% tree planting% urban agriculture and bee"eeping. Create lin"ages to promote sustainable environmental management and development.
4.7
/!ni&ionl /"#&i"s
To provide a 3-year operating plan for the bri!uettes and energy-saving stoves business focusing on
11
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 'ncreasing bri!uettes production (sustaining demand) from current 64 pieces of honey comb bri!uettes per day each weighing 1.3 "gs e!uivalent to 152 "gs. To diversify bri!uette shapes to cater for all mar"et segments that is produce stic" bri!uettes and pillow shaped bri!uettes. 'ncrease on production of customized bri!uette stoves to create bigger mar"et to bri!uettes To guide and lay strategies of for accessing the feedstoc" for sustainable bri!uette production as well as stove ma"ing. •
•
•
•
•
•
•
•
•
To upgrade our production facility and have our products certi&ed by the Uganda Bureau of 7tandards (UB,7). 'ncreasing sales of bri!uettes of various shapes li"e honey comb% stic" and pillow shaped by sensitizing users and mar"eting through mar"eting materials D branding. =evelop new products of pillow bri!uettes% brooding "its and stic" bri!uettes within the net two years and ac!uire basic processing e!uipment for Jos G!""n T"#hnoloi"s %&' for improved !uality and eAciency. /c!uire bigger land and establish commercial production sites (factory) in
4.< •
•
•
•
sin"ss @ihlih&s
Kenerate a strong business cash Low to support cash purchases to enhance business allianc es between Jos G!""n T"#hnoloi"s %&' and suppliers of feed stoc" (char% biomass waste) for consistent supply of high !uality feed stoc" and also establishing big mar"ets for all bri!uettes produced. 7ensitize stove and bri!uette users on other products produced li"e &ed bri!uette stoves% brooding "its and other bri!uette shapes. Kood line of production e!uipments in good operating conditions to enhance bri!uettese8ectiveness and stoves. and eAciency in !uality production of both /ll our business activities and products should be able to promote Jos G!""n T"#hnoloi"s %&' commonly "nown as Jos as a household name or reference for Kreen Conservation 7olutions.
1
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 4.10 /!ni&ionl *hilosoBh; ,ur philosophy is a very simple oneG P 0o*r Green Con-ervation Sol*tion-.Q
4.11 5on'"!s n' Mn"m"n& T"m The anagement team is comprised of /siimwe 7amuel% :inshaba Fonnah and ugisha Brian. The anagement team is highly motivated% eperienced and well !uali&ed. The team is strongly positioned to ta"e advantage of this opportunity. The team hasG • •
•
Hroven business start-up s"ills% with bottom line responsibility Eperience in business start up (&nance% mar"eting% operations and legal aspects) Hersonality pro&les that reLect the synergies of cohesive group dynamics
7amuel has signi&cant s"ills and eperience in business management consulting% renewable energies manufacturing and business management and stewardship capabilities. Fonnah is good on product development% &nancial management and general business administration (manmanagement) responsibilities. Brian is adept at business development and mar"et networ"ing that he combines well withecellent public relations s"ills and human resource training capabilities.
4.12 Sh!"hol'in S&!#&!" 14
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN The current company shareholding structure is as followsG
Tl" 3? ComBn; Sh!"hol'in S&!#&!" Sh!"hol'"!
5. 1. . 4.
Sh!"s h"l' (UGShs)
/siimwe7amuel :inshaba Fonnah ugisha Brian FosaKreenTechnologies T/TA%
5%222%222 622%222 522%222 522%222 2,000,000
>"K 32* 42* 3* 3* 100>
D? 5 U7= UK7hs. %322
6.0
*R/9UCTS AD9 SERVICES 6.1
*!o'#& 9"s#!iB&ion
The bri!uettes will be made out of charcoal-dust% dry agricultural wastes% sugar cane trash% and maize trash from farmers. Trash is de&ned as P&brous material left in the &eld after harvesting. The trash is burned in a carbonizing unit to form charcoal. The charcoal is then mied% molded% and dried. #inally% the charcoal bri!uettes are pac"aged in various !uantities suitable for sale to both commercial and domestic buyers.
G"n"!l #h!#&"!is&i#s o= &h" #!oni"' !i"&&"s • • • • • •
oisture ContentGI.5* - I.6* Molatile atterG 5.2* - 5.3* #ied CarbonG 65.2* - 6.2* /shG .5*-.I* @eating atterG =ensityG
I%522 ? I%22 "cal$"g I2"g$m
A'n&"s o= &h" !i"&&"s? •
Bri!uettes burn without any smo"e during ignition and burning. 13
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN inimum residual ash is formed (less than 3* of the srcinal weight of the charcoal). The concentration of &ed carbons will be about 61*. The calori&c value of charcoal bri!uettes is I322 >cal$>K. Bri!uettes contain minimum evaporative substances% thus eliminating the possibility of odour. Bri!uettes burn twice as long as hardwood charcoal due to fewer crac"s and increased strength. Bri!uettes do not produce spar"s as do the hardwood charcoal. Bri!uettes can be made in a uniform size and shape. Bri!uettes are dust free. •
•
•
•
• • •
Jos G!""n T"#hnoloi"s %&'s charcoal bri!uettes will be made utilizing simple technology. This will assure a product that is not only inepensive and a8ordable to its customers% but also of good !uality. Customers will want to tell others about them. Jos G!""n T"#hnoloi"s %&' will manufacture three types of bri!uettes% namelyG hon";#om !i"&&"s% !i"&&" s&i#:s% and BilloLHshB"' !i"&&"s. Besides the production of fuel bri!uettes% Jos G!""n T"#hnoloi"s %&' will also manufacture eAcient fuel-saving coo" stoves that can best &t our bio fuel bri!uette products. The range of stoves to be manufactured include moveable household stoves ( types)% as well as institutional moveable and &ed stoves and customized ovens.
1J
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
6.2
CB#i&; il'in S"!i#"s
Jos G!""n T"#hnoloi"s %&' partners with government and its bodies% :K,s%interested CB,s% private sector companies% individual and any other parties in capacity building to o8erentrepreneurs the following range of technical training and advisory servicesG
Tl" 4? Jos *!o'#&s n' S"!i#"s Products
ProductName
Supply/ Construction
Energy saving stoves Briquette institutional stove Household movable stoves
Training
Movable institutional stove
Briquettes Honey comb briquettes
Stic briquettes
Briquette press ! maing machines Honey comb press
Stic press
Charring drum
"uto #rinder Biogas
Biogas digesters $rban "griculture
1I
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN Covers% gardening& manure maing& Mushroom gro'ing
"nimal (eeds )Poultry& Cattle and Pigs*+ Beeeeping "piary setup ! management
,a- candles
Bee hives
6. •
•
•
• • • •
/&h"! S"!i#"s
Hlastic waste collection% recycling and best practices of its management Establishment of nursery beds for tree planting pro;ects and commercial tree planting. anagement of trees and bee "eeping pro;ects Business management s"ills Environmental 'mpact /ssessment and baseline studies. Entrepreneurship Training anagement and ,rganization training.
Jos G!""n T"#hnoloi"s %&' has the eperience D epertise to e8ectively carry out the above tas"s in specialized s"ills training D e!uipping the communities in their areas of interest.
A##omBlish"' Assinm"n&s To '&"
#or details on the assignments that have already been handled and completed by Jos G!""n T"#hnoloi"s %&' since 125 to date% please refer to ABB"n'iN I at the end of this business plan.
16
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
8.0
MARET STRUCTURE AD9 ADA%YSIS 8.1
iomss Us" in Un' .1.1 2eman3
ampala% IJ* of the population use charcoal as their main source of fuel for coo"ing. /s !uantities% the household consumption of &rewood and wood for charcoal was estimated at 11.1 million tonnes in 122J J% with small industries consuming a further 3.3 million tones creating a total annual biomass demand of 1I.I million tonnes nationwide. /nnual biomass consumption per capita is estimated% for rural and urban areas respectively% at J62 "g and 142 "g of &rewood and 4 "g and 512 "g of charcoal. 3=ata from the Uganda inistry of Energy and ineral =evelopment (E=)% Energy balance 1226 JUgandaenewable Energy Holicy% E=% 122I 1
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN /pproimately 4 million tonnes of wood (53* of the total) are consumed to meet the annual demand for charcoal% which in 1252 was estimated by di8erent sources to be betweenI22%222 and 632%222 tonnes I. 'n >ampala alone charcoal demand was 123%631 tonnes. Used mainly in urban areas% charcoal use is estimated to increase at J* per year% which matches the rate of urbanization. ethods of charcoal production remain highly wasteful with traditional methods achieving conversion eAciencies as low as 6-53*. =espite e8orts to improve theand eAciencies of traditional biomass energy including wood charcoal stoves% signi&cant results are yet totechnologies% be seen and many continue to be ineAcient. .1.! S*&&l+
#ollowing a comprehensive study 6 into the biomass resource during the 52s% the total biomass stoc" (air-dry% above ground) in Uganda in 1221 was estimated to be 4J6 million tonnes. ,f this% approimately * was in protected forest areas leaving the amount available for energy uses around 51 million tonnes. ampala)%estimated now to be 14* of total land cover% and the :ational Environment anagement /uthority (:E/) State of t'e Environ&ent Uganda 200. report predict that this de&cit will lead to complete depletion of the nation+s forests by 1232.
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN energy from agricultural residue made available from growing% harvesting and processing food crops such as cereals and roots as well as cash crops such as tea% cane sugar and co8ee. =ata provided by the government in the Uganda Renewable Energy Policy 2007 suggests that 5.1 million tons of agricultural residues are available each year.
8.2
!i"&&" M!:"&s
Carbonised bri!uettes can act as a replacement for charcoal for domestic and institutional coo"ing and heating% where they are favoured for their nearsmo"eless use. 'n comparison to charcoal% they generally burn for longer and have a more consistent heat output% which is preferred by certain mar"et segments such as restaurants% hospitals and schools. Houltry farming is a large industry in Uganda and smo"eless% longer burning bri!uettes are also well suited to heating cages overnight when temperatures are low as a cheaper alternative to electric heating lamps. 'f the price of a bri!uette is competitive to charcoal% then domestic users among rural populations as well as the urban and peri-urban poor can adopt them to replace charcoal for coo"ing. 'n terms of burning characteristics% households and institutions have similar re!uirements as both re!uire the fuel for coo"ing. The size and shape however may be di8erent because institutions will typically have larger stoves. :on-carbonised bri!uettes on the other hand serve as a replacement to natural &rewood and raw biomass fuel. They o8er greater energy per unit weight than wood or raw biomass (see Tl" 6) but release as much smo"e. Conse!uently these are more appropriate for industrial processesor institutions where emissions can be controlled. They can also be o8ered as a replacement fuel among rural populations where &rewood is still dominant. #urther commercial processes such as crop drying% tea drying% tobacco curing% ceramics$bric" &ring can also ma"e use of bri!uettes.
Tl" 6? 5"l ComB!ison? #lo!i+# l"s T;B" o= 5"l En"!; (#l:) HK 55%522 :atural gas %522
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 8. T!"& M!:"& n' Cs&om"! s" Uganda+s national development ob;ective is an accelerated% economic growth through increased productivity and enhanced agricultural and industrial production which will result in increasing employment opportunities% an e!uitable distribution of income% and a reduction of poverty. The realization of this ob;ective re!uires% amongst others% that !uality energy services be made available to people in a sustainable% cost-e8ective% and a8ordable manner. 'n Uganda% wood charcoal is supplied by charcoal dealers from :a"asongola% >ayunga% >amuli% uweero and asindi districts to semi-urban and urban centres of >ampala%
Jos G!""n T"#hnoloi"s %&'. will select ten wood charcoal vendors in ,wino (7t. Bali"uddembe)% :a"awa% Banda% >ibuye% >amwo"ya% >alerwe% and :amasuba these are all mar"ets around >ampala. They will be as"ed to try the Joss biomass fuel bri!uettes and energy-eAcient stoves. The selected charcoal vendors will then sell the bri!uettes to households% chapatti (panca"es) businesses% restaurants% and hotels. The changeover from wood charcoal to bri!uettes re!uires little behavioural change. This is because there is a direct substitution of wood charcoal to bri!uettes which eliminates the need to modify the stoves. 8.3
M!:"& Si" n' *o&"n&il
The mar"et end-users of bio fuel bri!uettes includeG households% chapati businesses% restaurants and hotels% boarding schools% poultry farmers and hospitals in both urban centres and some of the rural areas. These are the highest consumers of charcoal. Jos G!""n T"#hnoloi"s %&'. also intends to approach tourist lodges in the national par"s because they are very "een to see an alternative to wood charcoal% especially the FK' (Fane Koodall 'nstitute)%
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN &rewood and charcoal as a fuel for coo"ing. This is a sizable mar"et for charcoal bri!uettes.
Tl" 8 shows household energy consumption. Electricity was consumed by a small percentage who uses it for lighting purposes. The ma;oring of households used &rewood and charcoal for coo"ing. Tl" 8? @os"hol' En"!; ConsmB&ion @@ "n"!; #onsmB&ion in B"!#"n&" (>) Y"! 200406 200<10 T;B" Electricityforlighting 2.12 2.J2 Tadooba for lighting 5.12 1.J2 #irewoodforcoo"ing II.62 I.22 Charcoalforcoo"ing 56.12 15.32 >eroseneforcoo"ingDlighting 1.32 1.2 /verage @@ has 4.I members Source: Uganda "ureau of Statistics 2002
/ccording to the 122$52 Uganda :ational @ousehold 7urvey results% the proportion of people using &rewood decreased from II.6* to I.2*. =uring the same period% the percentage of those using charcoal rose from 56.1* to 15.3*. #irewood and charcoal consumption in Uganda is shown in Tl" 2.
Tl" 7 shows the biomass residential consumption of Uganda. >ampala district consumed 143%222 tons of charcoal in 122. The demand for charcoal is epected to increase because of increasing population.
Tl" 7? ConsmB&ion o= 5i!"Loo' n' Ch!#ol in Un' R"si'"n&il iomss ConsmB&ion So!#"? ConsmB&ion =#&o!s on Fsi# 9& n' AssmB&ions R"si'"n#" Energy carrier
R!l 5222t$yr 5%64 43 5%5J
U!n 5222t$yr J 11 2
mBl 5222t$yr
T/TA% O"ih& 5222t$yr
54 143 5
iomss ConsmB&ion in ll s"#&o!s
54%JIJ 35 5%125
T/TA% En"!; T,Et$yr 3%13I%6 JI%45 42%5I5
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 7ector Energy carrier esidential Commercial 'ndustrial T/TA%
Charcoal 5222t$yr
3%13I%6 5%23I%312 IJ1%2IJ 8,088,48<
35 564 2 6<8
Charcoal T,Et$yr JI%45 55%I54 2 3<<,134
esidues T,Et$yr 42%5I5 2 2 30,181
Source: Uganda "ureau of Statistics 200/
8.4
ComB"&i&o! Anl;sis
y main business competitors in the charcoal business are the charcoal dealers. These are the individuals who buy the wood charcoal from various charcoal supply areas. They transport the wood charcoal by truc"s to urban and semi-urban centres. 'n 122% over JI%222 tons of charcoal was supplied across Uganda (7ee Tl" 7).
mBl J"lli&on" SBBli"!s %&' % a local company in :atete% is currently producing compressed bri!uettes that are made from co8ee hus"s and sawdust. The company started the production of non-carbonized bri!uettes in Uganda% this was initiative by the company. :on-carbonized bri!uettes burn slowly and produce smo"e which leaves soot of coo"ing pots while carbonized bri!uettes burn slowly without producing smo"e. The company has targeted large institutions li"e schools and hospitals. The company sees the demand for bri!uettes increasing in schools. /T' a local :K, is also ma"ing carbonized bri!uettes and promotes them in villages. /lthough wood fuel is the least epensive% its soot blac"ens the coo"ing utensils and the given o8 smo"eis a serious health ris". Electricity% gas% and "erosene costs are too high to be used daily as a coo"ing fuel for the ma;ority of Ugandans. Charcoal o8ers a high level of convenience and cleanliness at an a8ordable price and bri!uettes made from waste can be sold at an ever cheaper price than conventional charcoal. @ousehold energy costs are shown in the table below% two households incomes were considered% that isthe high income (@') household and middle income (') household.
Tl"
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN I&"m Electricity >erosene Charcoal Charcoal #irewood Hropene gas Bri!uettes
Uni& 532"g
@I .J 2.I
53.16 2.55 6.6 >g 2.5 7ourceG UB,7% 1223 @' @igh 'ncome ' iddle 'ncome
MI .J 2.I 2.5 2.52 . 2.5
,ne "ilogram of wood charcoal was sold at cents% &rewood went for 55 cents and bri!uettes were sold at 5 cents.
8.6
Un' M!:"& ComB"&i&o!s .4.1 5am&ala Jellitone S*&&lier- Lt3
This is a large-scale company established in 55 to produce uncarbonised bri!uettes sawdust% groundnut shells% maize bran% ricewaste. bran% 7o maize cobs% co8eefrom hus"s% wheat bran and other types of agricultural far% the total investment cost is estimated to eceed U7@7 J22-million (U70142%222). The company currently employs approimately 34 wor"ers and sources raw materials from several districts. 7ome are situated more than 22"m away from >ampala% where the factory is located. The company organizes farmers into groups to gather agricultural waste% enabling them to earn an income from waste that would otherwise have been burnt or thrown away. The annual production capacity is about %322 metric tonnes% which is still below maimum potential. 'ts main clients are schools around >ampala and commercial operations including restaurants and ba"eries. .4.! Green Bio Ener%+
Kreen Bio Energy produces carbonized bri!uettes from charcoal dust and plans to blend charcoal dust with carbonized municipal waste. This plan involves subcontracting the carbonization of municipal waste to grassroots entrepreneurs who will be assisted to purchase the carbonization drums. The company% whose current production capacity stands at one tonne per day% has clients who are spread across >ampala% Entebbe% u"ono and areas 3
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN around
Kreen esources (Busoga #orestry Company) started producing charcoal bri!uettes in 1251.The company is a leading producer of Eucalyptus spp. for electricity poles. 't uses o8cuts and other byproducts to produce the charcoal% whichCurrent it pulverizes thencapacity uses thestands charcoal &nes asofraw materials the bri!uettes. installed at 322"g bri!uettes perfor hour. The pro;ect was made possible by a V32 222 grant from the :ordic =evelopment #und. Cassava is used as a binder for household bri!uettes% while molasses is used in bri!uettes for industrial applications. /t the time of this study% the company+s "ey concern was access to substantial mar"ets. .4.' S8i(o 2evelo&ment Servi"e- Limite3 6Livin% eart/ U%an3a7
7wi;o =evelopment 7ervices imited is a medium-scale producer of carbonised bri!uettes from charcoal dust% municipal waste and agricultural wastes. Cassava Lour is used as a binder. The company started with an initial investment of U7@52 222 222 (U70 22) it currently produces I3"g of bri!uettes per hour. Their main clients are households and institutions. The company+s biggest challenges have been identi&ed as drying the feedstoc" and bri!uettes% access to cheap pac"aging material and access to &nance. .4.9 Promoter- o) E:"ient Te"/nolo%ie- )or S*-taina;le 2evelo&ment
This company started in 1224 with an initial capital of U7@ 5%322%222 (U70 32) it currently employs si sta8 members. The company uses charcoal dust and municipal waste as feedstoc"% and cassava Lour as the binder. The main challenges include the limited access to viable &nance to scale up their activities and very high interest rates from &nancial institutions. in"ing bri!uette producers to &nancial institutions with low interest rates and development partners% developing dedicated lines of credit for bri!uette producers and providing seed capital to upcoming bri!uette producers were reported as viable options of addressing this barrier ? which is common among bri!uette producers. .4.4 Na<*la;+e Bri*ette =a
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN / local entrepreneur% s /lice 9alwango% who is a political representative and nurse in her community established :a"ulabye Bri!uetting technology in 1252. The business currently employs eight women and seven men and produces about 122"g of bri!uettes per day from municipal waste collected from the nearby :a"ulabye mar"et. /ll the company+s operations are manual ? a factor that constrains the up scaling of production. ,ther challenges include a lac" of space to dry the feedstoc" and the &nished products% which hinders production during rainy reason. The company+s clients are mainly households% roastingthe businesses and restaurants. .4. 5+e;an3o Ener%+ an3 Environment Pro(e"t
This is a >ampala-based small-scale bri!uette production business set up in 1255 to produce bri!uettes from charcoal dust and municipal waste. The company+s production capacity is 5.6 tonnes per month and is constant throughout the year the main clients are households and institutions (restaurants and schools). The business has been able to get credit services from &nancial institutions through #':C/% a village ban"ing micro-&nance institution programme. The challenges that it faces include low bri!uette promotional activities and poor mar"eting (which has greatly a8ected sales of the product)% low investment returns (which have hindered their epansion plans)% and a lac" of advanced machinery (which has resulted in-low !uality bri!uettes that fetch low prices). E8orts to assist the venture in scaling up can be channeled towards accessing &nancial services from &nancial lending institutions to enable it to advance its production and mar"eting processes.
8.8
ComB"&i&i" A'n&"
Bri!uettes have a high bul" density compared to &re wood and loose biomass. Because of their density and low moisture content% the bri!uettes give a longer burning time which will translate to cost savings for the customer. The cost of coo"ing fuel is one of the most important factors in determining which fuel to use. 'n Uganda% people are loo"ing for the cleanest% the most convenient% and the most a8ordable coo"ing fuel. Bri!uettes have additional bene&ts% including reduction on deforestation and carbon emissions.
I
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 'n Uganda% wood charcoal cost prices range from 051.I6 to 05J.JI per bag of 3"gs. This means that every "g of wood charcoal costs is in range of 02.I to 02.43. /n average Ugandan household consumes from 41 to 3J "g of wood charcoal per month% at a cost of about 05J.6 to 011.4I. By using Jos G!""n T"#hnoloi"s %&' bri!uettes% a family will spend between 05.21 and 05I.J on bri!uettes per month for the same !uantity of wood charcoal used.
7.0
T@E UG AD9A RIQUETT E ID9USTRY
Bri!uette producers in Uganda fall into distinct scales of operation characterized mainly by their type of bri!uette machine. Eamples of these businesses% their e!uipment% products and value chain are detailed in Tl" 10 on the following page. There are hundreds of micro-scale producers in operation who use primitive e!uipment and are largely engaged in income supplementing ventures. ost are ma"ing bri!uettes by hand in !uantities of less than 1 tonnes per year and for their own consumption as well as to sell in their local neighbourhood. any of the more enterprising of these% often with support such as from the =EEH (=eveloping Energy Enterprises Hrogramme) programme have purchased manual machines to enable them to produce up to 12 tonnes per year. otorized machines fabricated by s"illed artisans are capable of manufacturing up to 122 tonnes of bri!uettes per year. This is a typical entry point for entrepreneurs to enter the mar"et with powered machinery that they can purchase locally. 6
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN enya (where further advancements have been made in local machine fabrication) there are not any =EEH entrepreneurs at this scale yet in Uganda% however a few other ventures have "nown to be started over the last year as the commercial potential for bri!uettes is starting to be realized. @owever% this middle-scale of production appears to face the most challenges not having the investment to progress to using imported e!uipment and unable to produce enough output to ;ustify some of the "ey production and supply chain processes such as transportation% carbonization and accelerated drying. To get production to multiple thousands of tonnes per year% imported machinery is re!uired. This represents a big step up in investment and so far >ampala Fellitone 7uppliers is the only company operating at this level in Uganda. / few others of this scale are operating around East /frica and pro&les of these businesses are included later in the chapter. These larger businesses are each operating !uite di8erent business models% suggesting that a None-size-&ts-all+ model is not an option. Marying availability of feedstoc"s% di8ering mar"ets and uni!ue country economic conditions mean that a company of this size must eplore models that will wor" in its local contet. /n important note is that almost all of the 1%222 tonnes per year businesses in East /frica have bene&ted from grant funding to get them started and out of the 4 largest have been set up by foreign participants. They also all entered the mar"et at this scale of operation.
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN Tl" 10? Anl;sis o= &h" Un'n !i"&&" In's&!; Dm"! 522s 52 X 5 2 C!!"n&l; /B"!&in in Un' Top =EEH Hroducers (Uganda) Eco-#uel /frica (Uganda) >F7 (Uganda) U'/ Tender (>ampala% Uganda) ENmBl" :K,-supported micro- Kreen Bio Energy (Uganda) Chardust (>enya) sin"ss"s Top =EEH Hroducers (>enya) E/ Bri!uette Company entrepreneurs •
•
•
•
•
•
•
•
including those in other East /frican countries
(Tanazania)
20 &onn"s;"!
EiBm"n&
•
•
• •
*!"mis"s
•
5""'s&o#:
•
SBBl;
•
•
• •
5 or 1 manual machines E$g$ lever e-truder &anual screw e-truder
200 &onn"s;"! •
•
otorised machine s that are fabricated locally
E$g$ electric screw e-truders
7ingle =rum >ilns 7un-drying $ solar driers 7un-drying ,ften in entrepreneurs house Can do at entrepreneurs and garden residence or in a large garden Typically charcoal dust% but ainly charcoal dust also carbonised leaves% 7ome agricultural wastes (but re!uired !uantity is too banana peels and garden much to carbonize without wastes (this !uantity is heavy e!uipment) easily charred by a drum "iln)
2,000 &onn"s;"! •
•
•
•
Collect from local charcoal vendors Karden wastes :o shortage at re!uired !uantities
• • •
•
•
•
•
•
•
•
•
Collect from local charcoal vendors /gricultural waste bought from farmers (usually smallholders) 7mall carbonisation "ilns leased to farmers :ot economical to transport raw materials from afar
42
•
•
20,000 &onn"s;"!
otorized machines that are imported
E$g$ roller press 1yw'eel3 piston
large
7un-drying $ Lash drier =edicated factory needed /ppro. 1 acres of land
•
•
• •
•
industrial
machinery%imported
E$g$ . t'r 'ydraulic pellet press
/ccelerated drying arge centralized factory based within >ampala city
Charcoal dust organic municipal :on-carbonised agricultural =ried solidwaste waste Carbonised agricultural waste (carbonising and transport become more economical at this scale /gricultural waste bought on Centralised collection bul" from farmers throughcity waste collectors (contractual arrangements) Centralised sorting centres Collect most charcoal dust in vicinity and further a&eld Transport networ" established •
•
•
•
arge-scale
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
9is&!i&ion
Y 7ell to neighbours and local domestic users
•
•
•
•
In"s&m"n& R"i!"'
XU705%222
7ell in a few &ed mar"et outlets ,pportunistically at mar"et days haw"ing
U703%222
assu&ing land is already owned
45
•
•
7ell to institutions who are often regular customers =omestic users through organized retail networ"
U70 32%222 - U70 522%222
•
7ell through well-established retail outlets in >ampala
U70 1.1 million
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 'n 1252 the Uganda 'nvestment /uthority (U'/) put forward investment proposals for a I2-tonne per day (12%222 tonnes per year) manufacturing plant for bri!uettes made from municipal solid waste collected from households and surrounding mar"ets in >ampala. /t the time of writing% the U'/ were unable to comment on the status of this tender% however their business plan analysis does suggest that there is potential for one industrial scale bri!uette plant to operate in >ampala. The supply and distribution models of businesses operating at each level of production as do into the challenges faced by each. The case studies givedi8er% an insight some of the people wor"ing infollowing these di8erent sized bri!uette businesses.
41
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN <.0 MARETIDG AD9 9ISTRIUTI/D
<.1
M!:"&in n' Commni#&ion
#lyers and posters will be made. They will have printed instructions for lighting the bri!uettes and estimating their burning time. The Lyers and posters will be an educational tool% with both &nancial and environmental advantage. They will be distributed to the selected vendors% will hand them out to clients as they buy the bri!uettes.
Jos G!""n T"#hnoloi"s %&' will attend ehibitions li"e the Energy
9is&!i&ion
The manufactured bri!uettes will be distributed to the ten selected charcoal vendors around >ampala in ,wino% :a"awa% Banda% >ibuye% >amwo"ya% >alerwe% :amasuba. /s part of the initial training and promotional awareness raising% each vendor will be given a 52 "gs pac" of bri!uettes and a stove for trial purposes. This will allow them to demonstrate charcoal bri!uettes to their wood charcoal clientele. /ll feedbac"s will be documented.
<.
Sl"s
There will be an initial production of 56 tons of bri!uettes during the &rst year of operation. This will average 1.31 tons of bri!uettes per day. / "ilogram of bri!uettes will be sold at 1 cents and generate sales revenue of U70 123%14. Hroduction during the second year of operation will increase by 53* to a level of 5%233.I tons of bri!uettes. 'n order to meet the increased production limit that year% wor"ing hours will be increased. /s the mar"et focus is etended around >ampala% the company will realize U70 14I%6 of sales revenue during the second year. 'n the third year of operation% the pro;ect will produce 5%154 tons of bri!uettes a production increase of 2* with sales revenue of U70 1%2. 4
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 'n 125J% Jos G!""n T"#hnoloi"s %&' intends to epand its business to incorporate more outlets using eisting charcoal vendors and supplying to the tourism and the hospitality industry. Jos G!""n T"#hnoloi"s %&'s target is to sell 5%32 tons of bri!uettes for 1212. This represents 3.35 percent of the entire charcoal consumption of >ampala.
Tl" 11 shows the bri!uette sales revenue of the &rst three years of operation% as etracted from the budget spreadsheet.
T R""n"s (InY"US9) I&l" "m9"11? s#!i*!o"#&"' B&ion Y"!1 !2 Y"! Y"!3 Y"!4 !i"&&"s? @oneyCombs 4J%16J 33%62 JI%466 I4%423 61%II Bri!uette7tic"s 525%426 511%432 54I%63 5J%254 565%1J6 Hillow-shaped 3I%J22 J%331 6%64 1%31 521%J5 bri!uettes SHTo&l 20 4, 2<3 238,7< 2<<,0 0, 012 6 6, <64 S&o"s? oveable7tovesType5 35%41 J1%525 I4%6J 61%JI1 5%2 oveable7tovesType1 45%54 4%J62 3%6 JJ%56 I%34 oveable7tovesType 13%I54 5%232 I%41 45%3 43%J4 'nstitutional moveable 521%63I 514%122 54%I5 5J3%4 56%636 stoves 'nstitutional &ed J6%3I5 61%I %62 552%116 511%3I5 stoves Customized,vens 35%41 J1%525 I4%6J 61%JI1 5%2 SHTo&l 3 1, 13 311,<0 3<8,306 43 7, <0 60 <, 8<6 T/TA%SA%ES 43 6, 38 64<,72 8<6,86 78 7, 301 <8 6, 861 <.3
M!:"& *"n"&!&ion S&!&";
Jos G!""n T"#hnoloi"s %&' will employ a four-pronged mar"et penetration strategyin accessing and growing the emerging bio fuel bri!uettes$pellets mar"et in Uganda. The integral elements of this mar"et penetration strategy includeG product pricing product distribution product promotion and product innovation. *!o'#& *!i#in Jos G!""n T"#hnoloi"s %&' ma"es use of low-priced raw materials% ample labour supply and a good measure of innovation% set out &o B!o'#" 44
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN ="ls &h& #ol' s"ll 'i!"#&l; in&o &!'i&ionl #h!#ol m!:"&s n' #omB"&" h"'H&oHh"' on o&h B!i#" n' li&;.
*!o'#& 9is&!i&ion Jos G!""n T"#hnoloi"s %&' will mostly target institutional customers such as poultry farms% chapati businesses% hotels% lodges and restaurants% boarding schools% hospitals% as well as to charcoal dealers and individuals for direct sales into the domestic mar"et that collectively represent the largest mar"et segment of product end-users.
*!o'#& *!omo&ion •
•
#or introducing the Jos G!""n T"#hnoloi"s %&' bio fuel bri!uette products on the mar"et% we will mar"et our product(s) through di8erent mediums (Company
*!o'#& Inno&ion will at avendors later stage also produce premium Jos G!""n T"#hnoloi"s %&' charcoal bri!uette made from selected waste and naturalabinders. This lower ash product will be designed for the domestic barbecue mar"et and will be sold mainly through supermar"ets within the city of >ampala.
Jos G!""n T"#hnoloi"s %&' will also introduce agglomeration machinery to its production line for the fabrication of spherical bri!uettes that will be aimed at the urban mid-scale mar"et.
43
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 10.0 *R/JECT TEC@ DICA% AS* ECTS
10.1 *!o"#& %o#&ion 5#ili&i"s The Jos G!""n T"#hnoloi"s %&'-s bio-fuel bri!uettes production facility is located at :ansana town in ampala city centre along the >ampala ? @oima road. The actual physical location of the eisting processing plant is at ,chieng 9one% abiraofCountry Club% %&' isfound 9one in :a"awa =ivision eastern suburbs >ampala city.:amuli
10.2 Si" n' CB#i&; The planned production monthly and annual output of bio fuel bri!uettes and stoves after the installation of additional plant manufacturing capacity on site is indicated in Tl" 12 below. /part from honeycomb bri!uettes% the planned production output of all the other bio fuel bri!uettes and stoves are indicated in "ilograms and units respectively. The production output of honeycomb bri!uettes is indicated in terms of Nstic"s+ with each stic" weighing 1.3 "gs.
Tl" 12? *lnn"' Mon&hl; n' Annl *!o'#&ion /&B& (*!o"#& Y"! 1) I&"m9"s#!iB&ion Uni&s Mon&hl; Annl *!o'#&ion *!o'#&ion A. I/ 5UE% RIQUETTES
@oneyCombs Bri!uette7tic"s Bri!uettes . ST/VES / VEDS oveable 7toves Type 5 oveable 7toves Type 1 oveable 7toves Type
'nstitutionaloveable7toves 'nstitutional#ied7toves Customized ,vens
7tic"s >gs >gs
Units Units Units Units Units Units
10. T"#hni#l 9"s#!iB&ion o= *!o#"ss 4J
%222 2%222 14%222
526%222 J2%222 166%222
22 422 22 32
%J22 4%622 %J22 J22
4 3
46 J2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN Bri!uette production will ta"e sugar cane trash% bagasse and leaves% maize waste and charcoal dustG which will be supplied by local farmers% sugarcane processing factories% and the charcoal dust collectors.
Th" B!o'#&ion B!o#"ss"s in#l'"? 5. Buy dry agricultural wastes$char or charcoal dust% sugar cane trash% and maize trash from farmersG NTrash+ is de&ned as &brous material left in the &eld after harvesting. 1. The trash is burned to form char. #or every one ton of dry agri cultural waste% 22 tons of char is realized. . Char is molded% dried% and pac"aged as bri!uettes in various !uantities suitable for sale to both commercial and domestic buyers.
C!oni&io n
*!"B!&ion o= =""' s&o#:s
MiNin Li&h in'"!
ComB#&ion !i"&&in
9!;in
9""loBm"n& o= !i"&&" in#l'" o&h"! FLs&" !L m&"!il Hossible raw materials include banana peelings% rice stal"s% cotton stal"s% mustard stal"s% and co8ee hus"s. @owever% Jos G!""n T"#hnoloi"s %&' still needs to do more research on the blends and ratios of these materials. @eat recovery is a possibility too but it re!uires proper engineering technology.
Tl" 1? Smm!; o= 'n&"s n' 'is'n&"s o= !i"&&" B!o'#&ion &"#hni"s TEC@DIQUETEC@D/%/G Y
A9VADTAGES 4I
9ISA9VADTAGES
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN /:U/ HE77 (,< HE77UE HE77)
• •
•
H'7T',: HE77
•
•
7CE< HE77
•
• •
,E HE77
•
•
low capital costs U70532 locally fabricated and enable access to bri!uetting technology especially in rural areas does not re!uire electricity high capacity up to I32"g per hour can be fabricated by local mechanical technicians low capacity costs U705 32 simple mechanism can be fabricated by local mechanical technicians high production capacity 5%322"ilogrammes per hour suited for bri!uetting of wet powder
• •
• •
•
•
•
•
• •
low capacity J"g per hour bri!uettes easily disintegrate low maintenance low-tech re!uiring little to no technicals"ills to operate very high capital costs U7012 222 - 2 222 import re!uired low capacity 532"g per hour
high capital cost U7054%222 -5 222 import related low compaction rate
10.3 *!o#"ssin M#hin"!; n' EiBm"n& The total cost of the Jos G!""n T"#hnoloi"s %&' bio fuel bri!uetting machinery and e!uipment is estimated at US9 10,180 (UGShs 4,600,000) out of which US9 1,880 (UGShs 6,200,000) is the value of the eisting plant machinery and e!uipment and US9 7,300 (UGShs 2<,600,000) will be spent on ac!uisition of additional fuel bri!uetting machinery and e!uipment. =etailed list of machinery and e!uipment and their cost estimates are given in Tl" 13. 5i!" 4? Roll"! *!"ss
5i!" 3? In's&!il @mm"! mill G!in'"!
Tl" 13? Es&im&"' Cos& o= M#hin"!; n' EiB m"n& I&"m9"s#!iB&ion Uni&s Uni&Cos& To&lCos& 46
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN (US9) (US9) A. EXISTIDG *%AD T EQUI *MEDT
@oneycombHresses Krinder 7tic" Hress SHTo&l
1 5
5I5.4 416.3I 5%222.22
41.6J 416.3I 5%222.22 1,881.3
/utomatedHistonEtruder
5
5%42.22
5%42.22
ollerHress /utomated double honeycomb press /utomatedier 7mall Tools
5
1%46J.22 1%42.22
1%46J.22 1%42.22
5 ?
5%54.22 J65.22
5%54.22 J65.22 7,180.00
5
54.22 6I.22
54.22 6I.22 20.00 10,180.00
5
. *%ADDE9 *%AD T EQUI *MEDT EiBm"n& =o! !i"&&"s
5
SHTo&l EiBm"n& =o! S&o"s
Kroovingachine Hressure7pray Kun SHTo&l T/TAC%/ST
5
10.4 il'ins n' Ciil Oo!:s Jos G!""n T"#hnoloi"s %&' plans to construct additional building infrastructure at the eisting production site that are estimated to cost US9 3,140 (UGShs 13,400,000) to put up. The buildings that are of immediate priority are the liner production structure% stores shade structure% and toilets. The detailed particulars and estimated costing for the proposed building infrastructure are provided in Tl" 14 below. Tl" 14? Es&im&"' Cos& o= D"L il'ins Ciil Oo!:s I&"m9"s#!iB&ion Uni&s Uni&Cos& To&l Cos& (US9) (US9) inerproductionstructure 5 1%3I 1%3I 7tores shade structure 5 6J2 6J2 Toilets 5 I5I I5I T/TCA/%ST 3,140 10.6 V"hi#l"s Jos G!""n T"#hnoloi"s %&' will re!uire 5 (one) medium-sized transportation truc" for pic"ing up the biomass and charcoal dust raw 4
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN materials for the processing of bio fuel bri!uettes from the identi&ed raw material source centres or production areas and delivering it to the bio fuel bri!uetting plant on a routine daily$wee"ly basis. The cost of this mediumsized truc" is estimated at US9 11,30 (UGShs 30,000,000).
10.8 iomss =o! !i"&&"s 1>..1
Overvie8
Bri!uettescan candetermine be made out of any biomass feedstoc" its heating potentialmaterial% as a fuel.although the choice of The available biomass resource consists primarily ofG • • • •
ampala% of which it estimates 5%322 tonnes are produced daily. 1>..!
Ra8 = aterial S *&&l+ S it*ation
32
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN The sugarcane trash is so highly ligni&ed and silici&ed which means that they cannot be used as fodder. /s a result% out growers burn the sugar cane leaves in the &elds. These leaves can be carbonized in a "iln to form char. The char from maize cob will be bought from farmers and farmer groups ' will be buying maize waste char because it is not economical to transport maize cob from farmers who are scatted all over the country. / centralized carbonized will be provided for farmers to use. Bagasse will be purchased from The 7ugar Corporation of Uganda td and >a"ira 7ugar
Tl" 16? iomss *o&"n&il iomss *o&"n&il Mois&!" (&ons) #on&"n& Bagasse 431%122 aize cob 14%222 (7ourceG Bingh% 1224)
32 53
E&ion 1, "loL shoLs ss" Bo&"n&il HotentialG 431%322 tons of bagasse I.3 5I2%222 tons of charcoal 522
The rate of transformation of bagasse to charcoal is 3 to 42* eAciency. The potential of charcoal production from bagasse in Uganda is shown in E&ion 1 above. /ssumption for the supply of raw material is 1%J14
tons in the &rst year • •
=ry agro-waste Charcoal dust
1%144 tons 62 tons
/ccording to the U: 7tatistics =ivision Energy 7tatistics =atabase (1255)% the total production of charcoal in Uganda in 1225 was 3J%62 tons% which means that theoretically% the bri!uettes from bagasse can replace 5I.II* of the charcoal produced in 1255.
35
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 7upply agreements will be secured from Fin;a based >a"ira 7ugar
10.7 So!#in o= RL M&"!ils 1>.?.1
Bioma-- @a-te
aterials for bri!uette ma"ing are mainly got from agricultural residues that include ground nut shell% stems% bean stal" and peels% maize stal" D cobs% food peels% sugar cane residues and o8 cuts% grass and stic"s% ;ac" fruit residues% leaves and papers. /ll these must be in a dry form. uch of the waste Jos G!""n T"#hnoloi"s %&' has been using to ma"e bri!uettes has been collected at household level where suppliers of the feed stoc" (dry waste) have been collecting biomass waste in various households% sort% dry and later sell to Jos G!""n T"#hnoloi"s %&' for furthe r processing into char through a process of carbonization (gasi&cation using down draft process). This however% has proved to be time consuming while carbonizing and wasteful in form of wasteG char conversion ratio where approimately 2* of waste is converted into char a primary raw material for bri!uette ma"ing. This is mainly because Jos G!""n T"#hnoloi"s %&' operates with low-output technology e!uipments to convert waste into char yet there is an increase in waste generated suitable for bri!uette ma"ing. This is attributed by increase in human population in >ampala and the surrounding ampala Capital City /uthority (>CC/) alone produces 5%322metric tonnes of waste$day suitable for bri!uette ma"ing which &nds its way to >itezi land&ll.
iomss Ls&" n""'"' Using the current e!uipments we have while carbonizing J2 "gs of biomass waste gives 54"gs of char. =uring bri!uette production this gives 5J "gs of stic" bri!uettes and when it is honey combs that are produced using the produced char J pieces of honey comb bri!uettes are produced. Therefore Fosa Kreen Technologies needs 6J4 "gs of dry waste that provides 126"g of char to sustain its daily bri!uette production of 64 pieces of honey comb. 31
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN S&!&"; Jos G!""n T"#hnoloi"s %&' in a period of 1 years should ac!uire a better facility with high waste ? char conversion to carbonize.
Jos G!""n T"#hnoloi"s %&' should train suppliers of waste in carbonization process to provide char rather than waste in its raw form. This will guarantee steady supply of raw material for sustainable bri!uette production rather than Jos G!""n T"#hnoloi"s %&' engage in both production of char and bri!uette production. 1>.?.!
C/ar"oal 2*-t
Charcoal dust is loose charcoal obtained either from poor conversion of wood into charcoal or during transport% handling and storage. Hresently traditional "ilns used in charcoaling are about 51* eAcient. This has created a huge opportunity for bri!uette industry to access raw material for bri!uette ma"ing. esearch also reviled that a signi&cant volume (52-3*) of charcoal in the form charcoal dust is lost during transportation and improper storage (>nZpLe 1224). The charcoal bri!uette technology is assumed to o8er a viable and low-cost alternative to charcoal. This also gives Jos G!""n T"#hnoloi"s %&' an age is accessing for charcoal dust as a raw material.
Ch!#ol 's& n""'"' This type of material is less time consuming and it enables high production levels since no time is invested to charring process. #or Jos G!""n T"#hnoloi"s %&' to produce 64 pieces of honey comb bri!uettes it re!uires 121 "gs of charcoal dust daily. S&!&"; Currently Jos G!""n T"#hnoloi"s %&' is wor"ing with various charcoal venders in mar"ets of :a"ulabye% engo% >amwo"ya% ,ld >ampala and :ansana to access charcoal dust. This is mainly in during rainy seasons when char from waste is insuAcient and diAcult to get. This has provided a safe fallbac" position for Jos G!""n T"#hnoloi"s %&' to sustain bri!uette production mainly in wet season. Jos G!""n T"#hnoloi"s %&' needs to create a strong bond with current charcoal venders it wor"s with but more so% loo" for other partnerships to guarantee steady supply of the feedstoc". in'"!? 'n addition to biomass miing% an appropriate binder is added and mied with the biomass thoroughly. This enhances the compactness of the biomass materials and prevents them from falling apart. Eamples of such binders 3
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN include starch% molasses. These are less costly and can be easily accessed either from the factories that produce sugar as a bio-waste or through use of o8 cuts and residues of food sta8s rich in starch.
5ill"!? This is another essential ingredient needed in bri!uette production. 10.< Eni!onm"n&l ImB#&s The environmental impact can be estimated if ma"ing the assumption that bri!uettes are directly replacing charcoal consumption. /s all the bri!uettes are currently made out of waste material% the greenhouse gas emission savings can be thought of in terms of the number of trees left standing as a result of replacing &rewood and charcoal. 't is estimated that each tonne of charcoal re!uires the felling of 66 medium size trees. Using this &gure% the total amount of deforestation avoided by the production of Lu"e bri!uettes by Jos G!""n T"#hnoloi"s %&' can be roughly estimated at 62%I64 trees annually (i.e. 56 metric tonnes 66 trees). ,ther salient environmental impacts of this bio fuel bri!uetting pro;ect are as followsG •
•
•
•
•
34
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
11.0 @UMAD RES/URCES AD9 MADAGEMEDT STRUCTURE The Jos G!""n T"#hnoloi"s %&' bio fuel bri!uetting enterprise$plant will create ;ob opportunities for 12 persons. =etailed descriptions are found in the following sub-sections.
11.1 Go"!nn#" S&!#&!" Jos G!""n T"#hnoloi"s %&' has a well-developed governance structure comprising of Board of =irectors. 11.2 /!ni&ionl n' MnBoL"! S&!#&!" The Company has a sound management structure in place with a welldeveloped organizational set up headed by the anaging =irector who handles day to day activities of the Company and is assisted by heads of departments and other sta8 including /rtisans. anagement is supported by /ssociate consultants with di8erent specializations who are engaged from time to time depending on the nature of pro;ects. The following are the "ey responsibilities of each of Joss departmental heads and other "ey personnelG
5inn#" A'minis&!&ion Mn"!?
=evelop all &nancial strategies% policies and procedures for the company. 7et the long term ob;ectives of the department and communicate it to the subordinates. eview of payment vouchers% ;ournal entries% credit$debit notes% along with source documents. Hrepare the periodical &nancial statements that represent the organizations &nancial position% including comprehensive income statement% balance sheet% cash Low statement% and changes in shareholders e!uity statement. onitor the results of periodical cash count as well as the physical count and ensuring their compliance with the accounting records.
33
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
5i!" 6? Jos /!ni&ionl S&!#&!" B."0 .1 02ECT.S
M"N"#2N# 02ECT.
B$S2NESS M"N"#E
C.NS$3T"NTS ):*
P.0$CT2.N M"N"#E
S"3ES ! M"4ET2N# M"N"#E
B28$ETTES ! ST.6ES "T2S"NS )9*
12N"NCE ! "0M2N2ST"T2.N M"N"#E
S"3ES E5EC$T26ES )7*
S$PP.T ST"11 ):*
"CC.$NT"NT );*
Sl"s M!:"&in Mn"!?
7et the short- and long-term ob;ectives of the department and communicate it to the subordinates. Coordinate with the production department to ensure that bio fuel bri!uette supply consignments to customers are dispatched and delivered on time. #ollow up on mar"eting campaigns and ensure that they are directed towards the targeted mar"et. onitor and follow up with sales account managers to achieve sales targets and supervise the sales cycle. a"e thorough assessments of the deman d and supply of bio fuel bri!uettes on the domestic and regional epor t mar"et and as well as the price situations in the world mar"et. 'ntensively deal with the processing of local mar"et sales documents (slaes invoices and vouchers) including transportation to targeted 3J
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN mar"et clients. Hrocess and follow up ocal Hurchase ,rders (H,s) with the concerned advising and correspondent ban"s.
sin"ss Mn"!?
/ssist Jos G!""n T"#hnoloi"s %&' in reaching its goals and ob;ectives related to sales% productivity% pro&tability and industry penetration% among other areas /nalyze data a"e crucial business decisions @ire% train and evaluate company employees Ensure that Jos G!""n T"#hnoloi"s %&' is on trac" to meet &nancial goals =evelop and implement Jos in reaching its budgets Hrepare reports for the Jos Board of =irectors% =% and senior management Ensure that wor"ers have the resources to complete their wor" /ssess the performance of Jos against goals and plans Herform human resource activities such as performance evaluations% hiring and discipline otivate wor"ers through incentives and positive feedbac" /ssume day-to-day tas"s li"e purchasing% hiring% training% and !uality control.
*!o'#&ion Mn"!?
7etting the department long and short- and long-term ob;ectives and communicate them to all subordinates. 7upervise and oversee the production processes% set up the production schedule for Joss di8erent product lines% and ad;ust schedules as needed. Ta"e responsibility for the processing and pac"aging of bio fuel bri!uettes for sale on the domestic mar"et. Ensure that the bio fuel bri!uetting$processing operations are cost e8ective and within the assigned budget. Ensure that bio fuel bri!uettes and stoves$ovens are manufactured and pac"aged on time% and are of good !uality that is in compliance with the minimum renewable energy industry standards
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 'dentify training needs of section employees and ma"e the necessary recommendations to the upper management.
Sl"s EN"#&i"s?
Jos sales eecutives will sell the companys range of products and services. Customers include individuals% businesses and government organizations and sales may be domestic (within Uganda) or regional (at a later stage)% or a combination of both.
/s well as approaching potential customers with the aim of winning new business the Jos sales eecutives will wor" to maintain good relationships with eisting clients% gaining repeat business wherever possible.
Typical activities for the Jos sales eecutives generally includeG
istening to customer re!uirements and presenting appropriately to ma"e a sale aintaining and developing relationships with eisting customers in person and via telephone calls and emails Cold calling to arrange meetings with potential customers to prospect for new business esponding to incoming email and phone en!uiries /cting as a contact between a company and its eisting and potential mar"ets :egotiating the terms of an agreement and closing sales Kathering mar"et and customer information epresenting Jos G!""n T"#hnoloi"s %&' at trade ehibitions% events and demonstrations :egotiating on price% costs% delivery and speci&cations with buyers and managers Challenging any ob;ections with a view to getting the customer to buy /dvising on forthcoming product developments and discussing special promotions 36
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
Creating detailed proposal documents% often as part of a formal bidding process which is largely dictated by the prospective customer iaising with suppliers to chec" the progress of eisting orders Chec"ing the !uantities of goods on display and in stoc" ecording sales and order information and sending copies to the sales oAce% or entering &gures into a computer system eviewing Jos sales performance% aiming to meet or eceed targets Kaining a clear understanding of customers businesses and re!uirements a"ing accurate% rapid cost calculations and providing customers with !uotations #eeding future buying trends bac" to employers /ttending team meetings and sharing best practice with colleagues.
11. *"!sonn"l *;!oll *ln
Jos G!""n T"#hnoloi"s %&' (Jos) recognizes that our employees contribute fundamentally to the Companys long-term prosperity% ac"nowledging our obligation to remunerate them competitively.
3
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 11.3 T!inin R"i!"m"n& The production manager should be given on-the-;ob training for a period of one month by eperts of the supplier of the machinery and e!uipment. The ten (52) bri!uettes and stoves artisans should also obtain a 53 days on?the? ;ob training on how to operate the e!uipment and handle the inputs. The estimated training cost is U7= 5%322.
11.4 5""'#: Con&!ol 5. 'mportant notices and developments will be continuously communicated to employees to "eep them abreast of developments and promoting a sense of belonging and oneness in the organization. 1.
Tl" 18? MnBoL"! R"i!"m"n& n' Annl %o! Cos& *osi&ion
Dos.
anaging=irector(=)
5
Mon&hl; Sl!; (US9) 5%322
To&l Mon&hl; Sl!; (US9) 5%322
Annl Sl!; (US9) 56%222
Businessanager
5
5%222
5%222
51%222
Hroductionanager
5
5%222
5%222
51%222
7alesDar"etinganager
5
5%222
5%222
51%222
#inanceD/dmin.anager
5
5%222
5%222
51%222
Consultants
1
622 J2
5%J22
5%122
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 7ales Eecutives
/ccountant
J22 5
#inance=ept.7upport7ta8
22
1
Hlant /rtisans
J22
I
T/TA%
22
20
#ringeBene&ts(42*oftheabove)
5%622
15%J22
22
52%622
5%122
54%422
1%522
13%122
1,100
148,200 J1%662
T/TA% ADDUA% OAGE I%%
12.0 IDVESTMEDT
220,070
REQUIREMEDTS,
*R/JECT
5IDADCIDG
AD9
RETURDS This section evaluates various &nancial aspects of the pro;ect (cost of pro;ect% earnings forecast% rates of return% paybac" period% cash Low% balance sheet% etc.).
12.1 CBi&l Cos& o= *!o"#& Total pro;ect cost including wor"ing capital is estimated at US$ 81,376. S#h"'l" 021? Ini&il *!o"#& In"s&m"n& Cos&s on page I6 provides the details on pro;ect capital invest ment costs. The ma;or brea"down of the total initial investment cost is shown in Tl" 17.
Tl" 17? Ini&il CBi&l In"s&m"n& Cos& o= *!o"#& (In US$) 9"s#!iB&ion %o#l 5o!"in C!!"n#; C!!"n#; /. EXISTIDG ASSETS and /ssets 6%3I5 2 J5
To&l
6%3I5
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN Buildings 5%54 2 5%54 Bri!uettesHrocessingE!uipment 5%II5 2 5%II5 2 SHTo&l ENis&in Ass"&s 11,376 11,376 B. *%ADDE9 IDVESTMEDT Buildings 4%532 2 4%532 E!uipmentforBri!uettes 2 6%5I2 6%5I2 E!uipment for 7toves 2 12 12 Mehicle(s) 55%42 2 55%42 ,Ace E!uipment 3I2 2 3I2 SHTo&l *lnn"' 16,140 7,300 23,440
In"s&m"n& 5iN"' Cos& Hre-,perationalEpenses
28,66 3%432 2%222
7,300 2 2
6,06 3%432 2%222
6,076
7,300
81,376
#unds will be re!uired for purchase and installation biomass fuel bri!uettes and stoves manufacturing plant machinery and e!uipment% &nance the construction of additional building structures% purchase one transportation truc" unit% and cover pre-operational and wor"ing capital epenses. The production process of the biomass fuel bri!uettes and coo" stoves processing plant is a continuous process and capacity has been calculated basing on stoves 52 hours per day. 't is epected thatJ3 thisdays biomass fueland bri!uettes and coo" processing plant will run for a year in the second year capacity utilization will start o8 522*% for the reason that the pro;ect has to utilize economies of scale to brea" even early and e8ectively service debt.
%n'? The Jos G!""n T"#hnoloi"s %&'-s bio-fuel bri!uettes production facility is located at ,chieng 9one opposite :;ovu Estate at :ansana town in ampala city centre along the >ampala ? @oima road. This plot of land belongs to Fosa and measures I%222 s!uare feet (appro. J32 s!uare metres) in size. Based on is the available theper cost of land in thethe peri-urban areas >ampala assumed at information U7= 532%222 acre (including developmental cost) ? basing on the fact that it is near the principal commercial and economic hub of Uganda and the added fact that in touches on one of the ma;or trun" roads into and out of >ampala city. Being located only 52 "ms from >ampala along the >ampala ? @oima highway (which will soon become a busy route on account of the upcoming oil industry activities in Bunyoro J1
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN region)% the cost of land in this area is high and for a plot of this size is estimated at US9 7,481 (BB!oN. UGShs 0 million) .
il'in Cons&!#&ion? Jos G!""n T"#hnoloi"s %&' plans to construct additional building infrastructure at the eisting production site that are estimated to cost approimately US9 3,140 (UGShs 13,400,000) to put up. The buildings that are of immediate priority are the liner production structure% stores shade structure% and the toilets. M#hin"!; n' EiBm"n&? The total cost of the Jos G!""n T"#hnoloi"s %&' bio fuel bri!uetting machinery and e!uipment is estimated at US9 10,180 (UGShs 4,600,000) out of which US9 1,880 (UGShs 6,200,000) is the value of the eisting plant machinery and e!uipment and US9 7,300 (UGShs 2<,600,000) will be spent on purchase and installation of additional fuel bri!uetting machinery and e!uipment. The total cost of additional investment in machinery and e!uipment also includes the cost of oAce e!uipment valued at US9 480 (UGShs 2,000,000). T!nsBo!&&ion V"hi#l"s? Jos G!""n T"#hnoloi"s %&' will re!uire 5 (one) medium-sized transportation truc" for pic"ing up the biomass and charcoal dust raw materials for the processing of bio fuel bri!uettes from the identi&ed raw material source centres or production areas and delivering it to the bio fuel bri!uetting plant on a routine daily$wee"ly basis. The cost of this mediumsized truc" is estimated at US9 11,30 (UGShs 30,000,000). Oo!:in CBi&l? =ealing in renewable energy is a business in which cash Low is very high and companies in the industry tend to generate cash surpluses on a regular basis% most of the raw material biomass such as bagasse and other agricultural$forestry waste and charcoal dust is purchased on a 5-wee" cash basis and the &nished product is sold on cash..
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN bills% salaries D wages% fuel for vehicles and for purchase of industrial and motor vehicle spares. The start-up wor"ing capital re!uirements have been estimated at US9 4,340 (UGShs 123 million) for the &rst two (1) months of operation and includes pre-operational epenses worth US9 4,340 (UGShs 1< million) and start-up inventory account worth US9 0,000 (UGShs 104 million) .
12.2 5inn#il *ln The pro;ect proposed to be &nanced through e!uity and ismedium-term institutional &nancinga combination in the ratio ofofcompany 73?16 approimately. The &nancial models show the medium-term loan bearing an interest rate of 3 percent per annum payable over a period of ten years. S#h"'l" 022? So!#" n' S&!#&!" o= *!o"#& 5inn#in on page I hereby refers.
12. *!o+& %oss A##on& / summarized version of the pro&t D loss account is given in Tl" 1< below.
Tl" 1
1%6J
142%I14
435%3J
JJ%IJ6
12.3 R&"s o= R"&!n ,n the basis of the earnings forecast and related pro;ections% rates of return for the pro;ect are calculated belowG J4
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
Tl" 20? R&"s o= R"&!n (In *"!#"n&"s) 9"s#!iB&ion Y"!2 Y"! Y"!3 Y"!4 KrossHro&tto7ales 62.3 62.3 62.3 62.3 ,peratingHro&tto7ales 16.4 3.52 42.54 45.I :etHro&tto7ales 5J. 11.45 1J.4J 1I.5 :et Hro&t to Total 51.2 12J.64 14.4 4.25 'nvestment 12.4 *;#: *"!io' Haybac" period for the pro;ect% both in terms of owner+s e!uity and total investment% is calculated belowG Total Capital 'nvestment Fosa+s E!uity PHro&tsQ
U70 I5%463 U70 55%463 :etHro&t\'nterest\=epreciation
Tl" 21? Cl#l&ion o= *;#: *"!io' =o! Ei&; n' To&l In"s&m"n& Y"! 5 1 4 3
Amon& Bi' #: =!om *!o+&s 2 52%J6I 53J%663 156%2J 132%J1
ln#" o= To&l In"s&m"n& -I5%46J 1%125 56%26J 42I%54 J3I%II6
Haybac"periodforE!uity Haybac" period for Total Capital 'nvestment
ln#" o= To&l Ei&; -55%46 1%56 14%26 4JI%54J I5I%II3
5.JOears 5.55 Oears
12.6 CBi&l? /&B& R&io Capital output ratios% representing the production potential of the pro;ect in relation to the investment involved in its establishment% are calculated belowG
Tl" 22? CBi&l? /&B& R&ios (In US9) J3
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 9"s#!iB&ion Y"!2 Y"! Y"!3 Y"!4 Total 'nvestment I5%463 ] ] ] 7ales(,utput) 34J%4I J3%61 IJ%IJ 6I6%425 CapitalG,utputatio 5GI.J4 5G.1 5G55.53 5G51.1
12.8 Csh 5loL S&&"m"n& The pro;ected cash Low for the &rst &ve years of the pro;ect is shown hereunderG
Tl" 2? *!o"#&"' Csh 5loLs (In US9) 1234 *!o"#& Y"! Costs (US Dollars) A. Cash inflow 1. Financial resources Total 2. Sales revenue total
I5%46J I5%46J ]
34J%4I ] 34J%4I
J3%61 ] J3%61
IJ%IJ ] IJ%IJ
6I6%425 ] 6I6%425
-I5%46J
-J4%356
-35%565
-J26%66I
-J4%6J
-I5%46J ]
-56%464 -5%3IJ
-56%I3 -416%5
-11%32 -4IJ%I
-5J%15 -355%2
] ]
-I%122 -53%222
-3%422 -53%222
-%J22 -53%222
-5%622 -53%222
". Corporate ta#
]
-%I6
-J%J
-2%J2
-523%266
$. Dividends "% on e&uit!
]
-4J2
-4J2
-4J2
-4J2
C. Surplus / deficit
2
-I%265
516%J41
56I%64
116%31
D. Cumulative cash bal.
2
-I%265
5%3J2
15%42
44I%45
B. Cash outflow 1. Total assets schedule including replacements 2. Operating Costs 3. Debt Service a) Interest b) epa!ments
JJ
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
12.7 ln#" Sh""& Hro;ected balance sheet for the &rst &ve years of operation is shown belowG
Tl" 23? *!o"#&"' ln#" Sh""& (In US9) CAPI TALEMPLOYED :
YR.1
YR.2 55%46 1%6J 103,42 J2%222 163,42
YR. 55%46 142%I14 242,21 43%222 2<8,21
YR.3 55%46 435%3J 36,042 2%222 3<,042
YR.4 55%46 JJ%IJ6 807,248 53%222 82,248
3%16J
3%211
4%I3I
4%4
4%11
52%5I5 3I2 55%42
%534 35 %544 2,7 160,818 1%J5
6%5I 43J J%636 20,207 2<8,<60 3%J6
I%512 4%3I1 16,473 3<7,812 %I43
J%52 41 1%16J 12,<4< 82,47 41%J2
544%435 51%421 -16%IJI
53%366 51%I 6%I5J
5II%53I 5%6I1 1JI%6
56%I65 54%3J 463%3J
20,1<7 51%6 I%122
20,<46 53%33J 3%422
22,233 56%J44 %J22
22,274 12%463 5%622
Shar e C ap i t al Ret ai ned arn E i ngs Shareho l der' s Equ i ty/ Defi ci t
Lon gTe rm Li abi l i t i es
EMPLOYM ENT OF CAP I TA L:
HlantBuildings Hroduction Hlant E!uip. Dachinery ,Ace E!uipment Mehicles %/DGHTERM ASSETS? CURREDT ASSETS? Account sRecei vabl e St ock ( I nven t ory ) Bank al B ance and as Ch Ot herCur r en t Asse t s
CURRENT LI ABI LI TI ES/D EBT: Account sPayabl e Curr en t Port i onofLo ng-
JI
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN t ermLi abi l i t i es
130,41< 163,42
NET CUR REN T ASS ETS: TOTALCAPI TAL
288,003 2<8,21
386,367 3<,042
810,2<8 82,248
12.< !":HE"n Anl;sis The pro;ect+s commercial brea"-even level (pro&tability brea"-even) in Hro;ect Oear 3 is calculated belowG
Tl" 24? !":HE"n Anl;sis in *!o"#& Y"! 4 (In US9) I &" m s V!il" 5iN"' Cos& To&l Cos& Cos& aw materials 5I2%42 2 5I2%42 7alariesDwages 5J%16 J3%J4 1J1%3I2 Third Harty Costs J%2J3 1%211 6%26I epairsDaintenance 5%41 I5 1%54 7torage% #uel D ar"eting 1%646 54%14 44%II1 ,Ace,verheads 5J%63I 3%J5 11%4IJ ,ther Costs 2 2 2 =epreciation 2 %J14 %J14 #inancial Epenses 2 5%622 5%622 T/TA% 322,10 <3,602 416,8 7ales Malue of Hroduction
Brea"-even 7ales 4%J21 5 ? 411%52 6I6%425 Brea"-even 7ales
U70 6I6%425 4%J21 4%J21 5 ?2.465 2.35
U70 561%51J
Capacity utilization re!uired to Brea"-even U70 561%51J 522 12.I* U70 6I6%425 argin of 7afety 522* ? 12.I* I.1I* J6
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 12.10 Vl" A''"'Con&!i&ion &o G9* 'mplementation of the pro;ect is epected to have a bene&cial economic impact on regional$national economic development. The pro;ect+s contribution towards the country+s Kross =omestic Hroduct (K=H) is estimated below.
Tl" 26? Vl" A''"'Con&!i&ion &o G9* (In US9) 9"s#!iB&ion Y"!2 Y"! Y"!3 Malue of Hroduction (7ales) %"ss In&"!m"'i&" InB&? Costof7ales 7torage%#uelDar"eting ,Ace,verheads =epreciation To&l In&"!m"'i&" InB&s Malue /dded Malue/ddedas*ofoutput Malue /dded per
Y"!4
34J%4I
J3%61
IJ%IJ
6I6%425
52J%236 1I%631 5%61 %J14 141,416 <3,<21 I1.1I*
516%2J3 %J5 5J%66 %J14 1 72, 20 3 88, 620 I1.*
534%J42 42%J52 12%6I %J14 21<, 26 1 488, 38 4 I1.46*
5I2%42 44%II1 11%4IJ %J14 2 31, 62 6 8, 0< I1.31*
5%I4J
1%665
16%6I4
5%631
J
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
1.0 IM*%EMEDTATI/D *%AD 't is epected that it will ta"e approimately months to have this pro;ect put into operation from the day funds for its eecution are secured. The preparatory stage which involves the negotiation and eventual approval for pro;ect funding is assumed to ta"e months from the date of its &rst submission to pro;ect &nanciers by the pro;ect promoters. The follow-on pro;ect implementation activities are epected to ta"e an additional J months to completion ? which altogether adds up to months. This has been rounded o8 to 5 year to account for a three () months contingency period to cover for any unforeseen time and cost overruns in the course of civil infrastructure development and set up at site and any delays that might occasioned in procuring% delivering and installing any of the other pro;ect+s capital e!uipment at Jos G!""n T"#hnoloi"s %&'s eisting land facility. The following Kantt chart presented in 5i!" 8 highlights the important pro;ect implementation milestones.
I2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN
I5
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 5i!" 8? *!o"#& ImBl"m"n&&ion Mil"s&on"s Commence ,perations Commissioning of :ew #uel Bri!uettes Hrocessing Hlant Three () months contingency planning period Establish fuel bri!uettes$stoves mar"et contacts (4 months) ecruitment of other Company 7ta8 (1 months) @iring >ey Eecutives (1 months) /rrangements for raw material supplies (5) 'ndustry Hlant D E!uipmentG 'nstallation D Commissioning (5 month) #uel Bri!uetting Hlant D E!uipmentG #reight D =elivery (1.3 months) #uel Bri!uetting Hlant D E!uipmentG 'denti&cation of E!uipment 7uppliers$,pening of Cs and ,rder of E!uipment (5 month) /dditional 7ite =evelopment$'nfrastructure D Civil
2
3
4
6 I1
8
7
<
10
11
12
1
13
14
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 13.0 *R/JECT EC/D/MICS 14.0 14.1 *!o"#& *Is 16.0 5I.2 The total investment capital re!uired for epanding and scaling up the proposed Jos G!""n T"#hnoloi"s %&' (Jos) bio fuel bri!uettes and coo" stoves manufacturing plant in Uganda is US9 60,000.
27.0 28^ H2? *!o"#& R"&!ns (In US9) 1.2:Tl" HM(U7hs) 5I* 2.24 31%442 5.2 #' 1.2 561.2* .2 Haybac"Heriod(Oears) 4.2 5.J 4.0 Tl" 28H? 5inn#in S&!#&!" (In US 9) 6.0 5inn#in 8.0 R&io 7.0 US9 .2 EistingE!uity/ssets 42.2 5J.2I* 45.2 55%463 41.2 =ebt 4.26 .* 44.2J 2%222 34.0 To&l *!o"#& 5inn#in 36.0 100.00> 38.0 81,374 (ENis&in *lnn"') 37.0 37.1 Jos C!"&ion 4.2 32.2 The Jos G!""n T"#hnoloi"s %&' (Jos) bio fuel bri!uettes and coo" stoves manufacturing enterprise will create 12 direct employment opportunities and thousands in indirect ;obs through the interlin"ed distribution and mar"eting induced activities. 35.2 31.2 The net emp loyment e8ect is generally epected to grow in tand em with the gradual commercial development of the renewable energy I
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN enterprise and the consolidation of its business$mar"eting position within the local and regional eport mar"ets. 3.2 The throughput of t he Jos G!""n T"#hnoloi"s %&'s raw material purchase and bio fuel bri!uettes and coo" stoves production activity on the domestic mar"et will de&nitely induce a positive bene&cial growth impact on other inter-related areas that will lead to the creation of more ;obs for a broad category of both s"illed and semi-s"illed labour. 34.2 33.2 /s a measure of national economic bene&t% the calculation below gives an indication of the in"s&m"n& &o os #!"&"' !&io (,ver the 3year &nancial analysis period). 3J.2 48.0 Tl" 27? In "s&m"n& &o Jos C!"&" ' R&io (IJCR ) 47.0 CoP"" *!o#"ssin ENBo!&in En&"!B!is"
J1.2
Fosa Kreen Technologies td
n'
4<.0 To&l Ini&il In"s& m"n& (In US9) J.2 I5%463
60.0 Do. o= Jos C!"& "' J4.2
12
61. 0 IJC R (In USh so ) J3.2
%3I 4
66.0 To&l in"s&m"n& "N#l'in "Nis&in ss"&s 68.0 68.1 Go"!nm"n& R""n" 67.0 J.2 The proposed epansion and scaling up of the Jos G!""n T"#hnoloi"s %&' (Jos) bio fuel bri!uettes and coo" stoves manufacturing pro;ect is vested with a sustainable and &nancially sound income-generating base that will yield substantial revenue for the Kovernment Treasury in the form of Co!Bo!&" In#om" TN (CIT) and personal income taes paid out annually. #inancial analyses in S#h"'l"s < (page 66) and 11 (page 2) show the Corporate 'ncome Ta (ta"en at 2* of gross income) ? building up on incremental trend. Total C'T payments to the Kovernment eche!uer are summarized in Tl" 2< and represent the aggregate annual C'T pro;ections from *!o"#& Y"! 2 to *!o"#& Y"! 4. I2.2
81.0 Tl" 2
En"!;
Fosa Kreen Technologies td
8.0 To&l CIT *;m"n&s =o! *Y 2 *Y 4 (In US9) IJ.2 16%J53
I6.2 I4
83.0 A"!" C IT *;m"n&sAnn m (In US9) II.2 I4%J34
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN I.2 The pro;ect management however generally epects to surpass these corporate ta revenue pro;ections by eceeding the stated sales pro;ections and thus ma"e bigger Corporate 'ncome Ta revenue che!ues to Kovernment a feasible and practical reality. 70.0 71.0 72.0 72.1 So#ioHE#onomi# ImB#&s 7.0 64.2 Jos G!""n T"#hnoloi"s %&' (Jos) bio fuel bri!uettes and coo" stoves production enterprise will de&nitely deliver a range of positive socio-economic impacts to Uganda which can be highlighted as followsG 63.2 •
•
•
•
•
• •
•
Fob opportunities are created through plant installation% operation and maintenance. #uel security is improved% thus increasing social security and the welfare of the local community. The burden of collecting fuel for both women and children in rural areas of Uganda is reduced. The health of women and children are improved by replacing polluting fuels with cleaner fuel for coo"ing. 'ncome is generated for the community from the collection and sale of bio mass raw and maize cobs. The currency of materials fossil fuelssuch suchas asbagasse "erosene is reduced. The industry created from the manufacture of bri!uettes contributes to the growth of the country+s K=H. @ard currency is generated from carbon &nancing e.g. as a Clean =evelopment echanism (C=) pro;ect% it can generate saleable credits.
76.0 78.0 77.0 7<.0 <0.0 <1.0 <2.0 <.0 <3.0 <4.0 <6.0 <8.0 <7.0 <<.0 100.0 I3
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 101.0 102.0 10.0 103.0 104.0 S#h"'l" 01? "; AssmB&ions n' *!o"#& Smm!; R"sl&s 106.0 108.0 Tl" 0H1? *!o"#& AssmB&ions 526.2 Heriod of construction D machinery 52.2 J onths delivery 552.2 Totaland/rea 555.2 2.5J /cres (J32 s! mtrs) 551.2 Business analysis period 55.2 3 Oears 113.0 114.0 Tl" 0H2? *ln& /B"!&in AssmB&ions 55J.2: o. of wor"ing days in one year 55I.2 J3 556.2 :o. of wor"ing shifts per day 55.2 5 512.2: o. of wor"ing hours in one shift 515.25 2 511.2 /nnual plant operating epenses growth 51.23* rate 123.0 9"B!"#i&ion R&"s 124.0 51J.2Br i!uette Hrocessing Hlant Buildings
51I.23 *
516.2Bri!uette Hrocessing Hlant E!uipment D
51.252*
achinery 52.2 ,AceE!uipment 51.2 Mehicles 13.0 14.0 16.0 18.0 17.0 1<.0 130.0 131.0 132.0 13.0 133.0 134.0 136.0 138.0 137.0 13<.0 140.0 141.0
55.2 52* 5.2 12*
IJ
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 142.0 14.0 143.0 144.0 146.0
II
148.0
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN Tl" 0H? *!o'#&ion '"& AssmB&ions (In US9)
147.0'"& 14<.0 *Y2 160.0 *Y 161.0 *Y3 162.0 *Y4 I&"mY"! 163 .0 D 164 . 0 * 166 . 0 T 16 8. 0 D 16 7. 0 * 16 <. 0 T 180 . 0 D 181 . 0 * 182 . 0 T 18 . 0 D 18 3. 0 * 18 4. 0 T 16.0 o . o = U n i & s
!i # " U n i& ( U S 9 )
o & l
!i # " U n i& ( U S 9 )
o & l
562.2 5 565.2 4 561.2 1. 5 % % 6 1 J 5 4 6 I 5.2 I 54.2 6 53.2 5 % 5 5. 6 I J I J
56.2 5 564.2 3 563.2 . 4 % 2 % 3 J 2 4 J 2 4 5J.2 5I.2 56.2 5 % 4 1. 3 2 1 3 4
12J.2 5 12I.2 1 126.2 4 2 % 4 6 2 J 15.2 112.2 5 115.2
12.2 5 152.2 1 155.2 6 % 3 2 5 3 111.2 11.2 5 114.2
%
56J.2 5 J % 6 2 5.2 5 5 % 3 5 151.2 1 5 % I 3 113.2 4
I
3
( U S 9 )
o .
!i # " U n i& ( U S 9 )
o = U n i & s
o & l ( U S 9 )
o . o = U n i & s
( U S 9 )
o .
!i # " U n i& ( U S 9 )
o & l ( U S 9 )
56I.2 3 566.2 . % 1 6 1 5 I
56.2 5 6 % I 1 2 121.2 5 1 % J 153.2 1 % 6 1 116.2 4
o = U n i & s
186.0Cos& o= Sl"s9i!"#& Cos&s 5II.2 Char from agricultural waste (tons)
5I6.2 4 5I.2 1. % I 5 6 2
52.2 Charcoal dust (tons)
55.2 I 5 5
51.2 5 5. 5 5
12.2 Binder (tons)
124.2 5 I 6
123.2 6 .
15J.2 Utilities
15I.2 5 156.2 1% 1
3
5
1
6 6. 5 J
% 5
I6
I
1
1. 3 I
122.2 6 I
125.2 5 1. 6 J
15.2 1 4 I
154.2 I. 1 2
11J.2 5 11I.2 % 1
I
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 5
11.2 Hac"aging materials (units)
12.2 6 15.2 2. 2 1 4 % 2 3 2
141.2 Transportati on
14.2 5 144.2 4%
244.0SHTo&l
13J.2
3 13I.2
1J.2 1I2.2 267.0 271.0S&o!", ="l, m!:"&in
% 1 2 1 11.2 1.2 5 14.2 2. 3 % 2 % 2 4 J 1 6 3 1 % 6 3 6 143.2 4 14J.2 5 14I.2 3% % 6 1
% I 3 6 4 4 13.2 4 1J.2 5 1I.2 2. % 2 % 5 3 2 4 6 1 J % 2 2 2 146.2 3 14.2 5 132.2 I% % 2 6 1
% J I 4 16.2 3 1.2 5 142.2 2. 1 % 2 % 1 3 2 3 4 2 5 % 2 2 2 135.2 I 131.2 5 13.2 I% % J 2 6
3 2 47 . 0 1 13.2 0 6 , 0 4 7 1I5.2 1I1.2
1 2 61. 0 1 1J1.2 2 7 , 0 6 4 1I4.2 1I3.2
1 2 26 3. 0 1 2 6 4 . 0 4 3 , 6 3 0 1II.2 1I6.2
1I.2 1.2 5 5% 2 5 5
1J2.2
1I.2
2 1J.2
1IJ.2
2 6 6.0
161.2 ar"eting costs
16.2 5 164.2 J% 6 3 2
163.2 J 16J.2 5 16I.2 6% % 1 6 I 3 5 2
166.2 6 16.2 5 12.2 % % 1 6 I 6 5
15.2 11.2 5 % 6 6
13.2 7torage
1J.2 5 1I.2 4% 5 2
16.2 4 1.2 5 22.2 4% % 5 3
25.2 4 21.2 5 2.2 3% % 6
24.2 3 23.2 5 2J.2 J% % J 2
I
2
I
3
6
6
1
% J 2 5 145.2 3 % 6 5 5
134.2 I % J 6 2 6 8 .0 1 8 0 , 3 < 0 162.2 14.2 5 5 % 2 5 5 2I.2 J % J 2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN I61 26.2 #uel
2.2 52.2 1. % 6 2 2 2
55.2 6 51.2 5.2 . % % 2 J 4 I 3 2 2
15.2 /dvertising D promotion
11.2 5 1.2 6% 1 1 3
3.0SHTo&l
3.2
J.2
14.2 6 13.2 5 1J.2 % % 1 1 1 3
54.2 5 53.2 5J.2 . 2 % 5 % 4 J J 6 1I.2 16.2 5 1.2 5 % 5% 1
5I.2 5 56.2 4 5.2 . 1 % % 5 3 J J 4 J 5 2.2 5 5.2 5 1.2 5 5 % % 1 1 1
8 . 0 2 6.2 8 ,
30 . 0 45.2 ,
3 . 0 3 3 3 . 0 0 ,
.2
7 4 2
38.0
46.2
60.0 61.0 62.0 6.0 63.0 64.0 66.0 68.0
32.2
6 1 35.2
31.2
3.2
3 4.0
3 6 .0 3 3 ,
6 1 0 34.2
33.2
3J.2
8 8 2 3I.2
36.2
3.2
Tl" 0H? *!o'#&ion '"& As smB&ions (In US9) W.. # on&in"'
J6.2 '"& I&"mY"! 8.0 S&P #os&s 6J.2
4.2
41.2
12.2 5 % I .2 5 % 1 1 1
anagers
6<.0 *Y2 I4.2 6I.2
I3.2 3 66.2
IJ.2 5 6.2 6 % 4 6
80.0 *Y II.2 2.2 1 % 4 2
I6.2 3 5.2
81.0 *Y3 I.2 5 1.2 % 4 2
62
62.2 .2 I % 2 1
65.2 3 4.2
82.0 *Y4 61.2 1 3.2 2 % I
6.2 5 J.2 2 5 % 6
64.2 3 I.2
63.2 1 6.2 5 %
5 2 J %
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN .2
iddle Hersonnel
422.2
6 425.2
5 421.2 5 % 3 3 2
42.2 1 % 4 2 2
6 424.2
5 423.2 1 % 5 1 6
42J.2 I % 2 1 2
6 42I.2
5 426.2 1 % I 4
451.2
abour
45.2
I 454.2
3 453.2 % 2 4 2
I 45I.2
3 456.2 % 1 1
3 415.2 % 3 3 I
Total :umber of 7ta8 'nsurance$Hens
41J.2
1 41I.2 2 5 442.2
416.2
1 42.2 2 5 44.2
45.2
45.2 I % 2 4 4 41.2
I 412.2
413.2
45J.2 3 % 1 6 2 41.2
44.2
I 5 5 42.2 2 5 % 6 I 5 411.2 6 % 6 J 43.2
46.2
4.2
ion
435.2
Training
431.2
363.0 SHTo&l
4J3.2
388.0
4I6.2
3<0.0 /#" #os&s 45.2 32.2
ent
324.2
2
2
3 445.2
% 2 2 2 5 43.2 1 434.2 % 6 2 2 . 2 2 3 6 8. 0 4JJ.2
4I.2 41.2 5 323.2 1
3 441.2 % 2 2 2 1 433.2 % 6 2 2
5 43J.2
2 4J6.2 2 8 , 7 7 0 370.0 465.2 3<.0 44.2 2 32J.2 2 32I.2 5 1
4J.2
461.2 43.2 326.2
4
2
4
3 444.2
3 443.2
1 4.2 2 5 44J.2
3 44I.2
3 446.2
% 2 2 2 1 43I.2 % 6 2 2 . 2 2 3 80. 0
% 2 2 2 1 436.2 % 6 2 2
% 2 2 2 5 43.2 1 4J2.2 % 6 2 2
% 2 2 2 1 4J5.2 % 6 2 2
2 4I5.2 7 , 7 7 3 37.0 464.2 3<6.0 4I.2 2 32.2 2 352.2 5 . 1
65
38.0 2 4 0 , 3 7 3 76 . 0 463.2 46.2 3<< .0 355.2 2 351.2 2 . 4I1.2
3 83 . 0
6 452.2
5 455.2 % I 5
I 41.2
3 414.2 % 6 4
1 4J.2 2 5 44.2
4I.2
5 4J1.2
38 4 . 0
J 3 5 2 J % J 3 4 2 % 6 4 5
3 432.2
3
% 2 2 2 1 4J.2 % 6 2 2
% 2 2 2 1 % 6 2 2
38 6 . 0 2 6 2 , 4 8 0 3 78 . 0 37 7 . 0 37 < . 0 400. 0 401 . 0 402 . 0 35.2 5 354.2 2 353.2 2 1
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 35J.2
Telephone
35I.2
5 356.2 1
31.2
7tationery
32.2
5 35.2 1
341.2
Electricity
34.2
5 344.2 1
444.0 SHTo&l
33J.2
33I.2
467.0
3J.2
3I2.2
471.0 EiB m"n& min &"nn#" #os&s 31.2
Bri!uettes maintenance
3.2
5 34.2 1
J23.2
Buildings maintenance
J2J.2
5 J2I.2 1
J56.2
7toves
J5.2
5 J12.2
1 35.2 I 4 . 5 I 1 31.2 I 4 . 5 I J 343.2 5 J .
312.2 % 1 2
5 315.2 1
3.2 % 1 2
5 34.2 1
I 34J.2 % 4 2
5 34I.2 1
6
1
447. 0 1 33.2 , < 7 2 481.0 3I1.2 361.2 36.2 5 33.2 J . 6 2 4 J26.2 4 . 2 3 5 J15.2
2 2 311.2 5 . 2 J 33.2 5 . 2 J I 346.2 4 4 . 6
3I.2 364.2 5 3I.2 1
3 J2.2 1
5 J52.2 1
1 J11.2
5 J1.2
5 314.2 1
3J.2 % I
5 3I.2 1
6 34.2 %
5 332.2 1
6
461 . 0 1 3J1.2 6 , 7 7 483.0 3I3.2 363.2 36J.2
3J2.2
5 3J.2 % J J
31.2 % I
5 36.2 I 5 . 4 J55.2 J . 1 3 1 J14.2
61
6 3J.2
3IJ.2 36I.2
1 3.2 % 2 J 4
5 J22.2 1
3 J51.2 3 3
5 J5.2 1
1 J13.2
2 2 313.2 . I 3 36.2 . I 3 6 335.2 .
5 J1J.2
4 31J.2 % I I
5 31I.2 1
4 316.2 4 5
3 % 1 6
4 3.2 % I I
5 342.2 1
4 345.2 4 5
3 % 1 6
5 331.2 2 % I
5 33.2 1
334.2 1
5 5 % 6
4 6 3. 0 2 4 6 4 . 0 0 , 7 8 4 88 . 0 4 87 . 0 366.2 36.2
5 J25.2 6 2 . 3 4 J54.2 6 . 3 J 1 J1I.2
46 6 . 0
48 < . 0 32.2
1 J21.2 % 5 J I
5 J2.2 1
3 J53.2 6
5 J5J.2 1
1 J16.2
5 J1.2
46 8 . 0 2 2 , 3 8 6 47 0. 0 35.2 5 J24.2 6 . J 1 3 J5I.2 2 . 1 J2.2
1 % 1 I 3 J 5 1
1
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN maintenance
1
. 1
61.0 SHTo&l
J1.2
J.2
633.0
J43.2
J4J.2 J3.2
648.0 Thi!' *!&; J36.2 #os&s JI2.2
Ban" charges D fees
J6.2
egal costs
JJ.2
'nsurance
6 3. 0 2 J3.2 , 4 1 8 J4I.2 J46.2 JJ2.2 JJ5.2
JI5.2
JI1.2
80<.0 SHTo&l
5 JI.2 % 1 4 J64.2 5 J63.2 1 J6J.2 % I 4 2 JI.2 5 J6.2 5 J.2 % J 4 3 81 0. 0 811 . 0 8 1 2. 0
822.0
I1.2
I46.2
I4.2
I14.2 II.2 5 I32.2
IJ5.2
Electricity connect fees
IJ1.2
5 IJ.2
84.0 /&h"! #os&s IJ.2
1
% I 2 1 1 % I 4 2 5 % J 4 3 7 , 0 7 8
I13.2 I6.2 1 I35.2 1 % % 2 2 2 2 2 2 IJ4.2 % % 1
1
. 2 5
4
6 8. 0 2 J6.2 , 6 3 J32.2 J35.2 JJ.2 JJ4.2
JJ.2
J4.2 JJ1.2
JI4.2
JI3.2
I1J.2 I.2 I31.2
I1I.2 I42.2 I3.2
IJ3.2
IJJ.2
1
5 JIJ.2 % 1 4 J6I.2 5 J66.2 1 J6.2 % I 4 2 I22.2 5 I25.2 5 I21.2 % J 4 3 81 .0 813.0 814.0
J.2
J31.2 JJ3.2
JII.2
JI6.2
I16.2 I45.2 I34.2
I1.2 I41.2 I33.2
I2.2 I4.2 I3J.2
IJI.2
IJ6.2
IJ.2
6
% I 2 1 1 % I 4 2 5 % J 4 3 7 , 0 7 8
. 5 5
3
1
6 30. 0 2 6 31 . 0 , 8 8 4 J3.2 J34.2 JJJ.2 JJI.2
5 JI.2 % 1 4 J2.2 5 J5.2 1 J1.2 % I 4 2 I2.2 5 I24.2 5 I23.2 % J 4 3 816 . 0 8 1 8. 0 8 1 7. 0
% I 2 1 1 % I 4 2 5 % J 4 3 7 , 0 7 8
. 1 1
632.0
J33.2 JJ6.2
I
63 .0 2 , < 1 3 J3J.2 JJ.2
J62.2
J65.2
5 J61.2 % 1 4 J.2 5 J4.2 1 J3.2 % I 4 2 I2J.2 5 I2I.2 5 I26.2 % J 4 3 81< .0 82 0. 0 82 1 . 0
I5.2 I44.2 I3I.2
I1.2 I43.2 I36.2
I.2 I4J.2 I3.2
I4.2 I4I.2 IJ2.2
II2.2
II5.2
II1.2
II.2
% I 2 1 1 % I 4 2 5 % J 4 3 7 , 0 7 8
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 2 2
8 8 3 . 0 S HTo& l
8 8 4 . 0 8 86 . 0
878.0 To&l /B"!&in Cos&s
I66.2
2 2 8 8 8. 0 4 8 8 7. 0 , 2 0 0 87< . 0 I2.2 < 1 , 4 8 6
8 8< . 0
8 70. 0 0 8 71 . 0
I5.2
8< 2. 0 3 I.2 2 7 , 1 < 3
64
8 7 2. 0
I4.2
8 7 . 0 0 8 73 . 0
8< 4 . 0 3 8 < 6 . 0 8 6 , < 8
87 4 . 0
8<8.0
87 6 . 0 0
8<7.0 4 1 1 , 0 <
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 8<<.0 Tl" 0H3? R""n" AssmB&ions 700.0 Uni&s? 701.0 621.2 @oneycomb Bri!uettes 62.2 7tic"s ^ 1.3 "gs 624.2 ,ther Bio #uel Bri!uettes 623.2 >gs 62J.2 7toves$,vens 62I.2 Units 62.2 707.0 *!o'#&ion Q n&i&i"s ( *Y 2 onl;)? 710.0 !i"&&"s? 655.2 651.2 @oneyCombs 65.2 %222stic"sp.a. 654.2 Bri!uette7tic"s 653.2 2%222"gsp.a. 65J.2 Hillow-shaped bri!uettes 717.0S&o"s? 612.2 oveable stoves 5 611.2 oveable stoves 1 614.2 oveable stoves 61J.2 'nstitutional moveable stoves 616.2 'nstitutional &ed stoves 62.2 Customized,vens 72.0 Annl *!o'#&ion Sl"s Volm" G!oL&h R&"? 64.2 HO 6J.2 HO 4 66.2 HO 3 730.0 Sl"s *!i#"s (*Y 2 onl;)? 732.0 !i"&&"s? 644.2 64J.2 646.2
@oney Combs Bri!uette 7tic"s Hillow-shaped bri!uettes
740.0S&o"s?
631.2 oveable stoves 5 634.2 oveable stoves 1 63J.2 oveable stoves 636.2 'nstitutional moveable stoves 6J2.2 'nstitutional &ed stoves 6J1.2 Customized ,vens 6J4.2U nit sales prices growth rates 766.0 768.0 767.0 76<.0
65I.21 65.2 4%222 "gs p.a. 615.2 22units p.a. 61.2 422units p.a. 613.2 22units p.a. 61I.23 2 units p.a. 61.24 units p.a. 65.2 3unitsp.a. 6.2 63.2 53* p.a. 6I.2 53* p.a. 6.2 3* p.a. 645.2 64.2 643.2 64I.2U70 U702.4$stic" 2.16$"g 64.2U 70 2.12$"g 635.2 63.2 U70 54.1$unit 633.2 U70 6.3I$unit 63I.2 U70 I.54$unit 63.2U 70 5I5.4$unit 6J5.2U 70 5416.3I$unit 6J.2 U70 63I.54$unit 6J3.23 * p.a. $unit
780.0 781.0 782.0 Tl" 0H4? 5inn#il AssmB&ions 6I.2 edium-Term oan #inancing 6I4.26 .* 6I3.2 FosaE!uity 6IJ.2 5J.2I* 6II.2'n terest ate on medium term debt 6I6.251 * p.a. 6I.2 KraceHeriod 662.2 5Oear 63
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 665.2 =ebt payments per year (oan 661.25 /nnuities$Oear) 66.2 Echangerate 664.2 U705UK_%322 663.2 'nLationrate 66J.2 3* 778.0 777.0 77<.0 7<0.0 7<1.0 7<2.0
7<.0 7<3.0 7<4.0 7<6.0 7<8.0 7<7.0 7<<.0 <00.0 <01.0 <02.0 <0.0 <03.0 <04.0 <06.0 <08.0 <07.0 <0<.0 <10.0 <11.0 <12.0 <1.0 <13.0 <14.0 <16.0 <18.0 <17.0 <1<.0 <20.0 <21.0 <22.0 <2.0 <23.0 <24.0
S#h"'l" 0 21? Ini&il * !o"#& I n"s&m"n& C os&s (In US9) 9"s#!iB&ion
<26.0
C os& (US9) 16.26%3I5
1I.2and 6J
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 1.2 Buildings D Civil
<44.0 <46.0 <48.0 <47.0 <4<.0 <60.0 <61.0 <62.0 <6.0 <63.0 <64.0 <66.0 <68.0 <67.0 <6<.0 <80.0 <81.0 <82.0 6I
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN <8.0 S#h"'l" 022? So!#" n' S &!#&!" o = * !o"#& 5inn#in (In US9) <83.0 <84.0S <86.0S o!#" . 5inn#"
o=
<8<.0%on 5in n#"
<70.0To&l (US9 )
64.2 6%3I5
63.2 2
6J.2 6%3I5
2.2 5%54
5.2 4%532
1.2 3%1
J.2 5%II5
I.2 6%422
6.2 52%5I 5
.2 4 5222.2 ,Ace E!uipment 5223.2 522J.2 otor 3 Mehicles (5 unit) 5255.2 5251.2 HreJ ,perational Epenses 525I.2 5256.2 7tart-up 'nventory 525.2
5221.2
522.2
5224.2
/ccount I 102.0 1023.0T/TA%
2 2%222 2%222 1026.0 1028.0 1027.0 11,374 60,000 81,374 525.2 521.2 52.2 5J.2I* 6.* 522.22*
D o . 65.25 61.2 and
6I.2 1 66.2 Building D Civil
<88.0Sh ! " (> )
<87.0Jos Ei &;
6.25 5. * 6.2 I.4 2* 3.2 54. 1 * 5225.2 2.62* 522I.2 53.* 525.2 I.J1*
45.I* 1024.0 100.00> 102<.0 100.0 > " o= To&l *!o"#& 5n'in *R/JECT
5UD9IDG
103.0 104.0 106.0 108.0 107.0 10<.0 1030.0 1031.0 1032.0 103.0 1033.0 1034.0 1036.0 1038.0 1037.0 66
2 5226.2 5254.2
5212.2
3I2
3I2 522.2 5252.2 2 55%42 55%42 5253.2 525J.2 2 3%432 3%432 5215.2
5211.2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 103<.0 1040.0 1041.0 1042.0 104.0 1043.0 1044.0 1046.0 1048.0
1047.0 104<.0 1060.0 1061.0 1062.0 S#h"'l" 01? Es&im&ion o = ! i"&&"s n' C oo: S &o"s Sl"s R""n"s (*Y 2 in US9) 106 . 0 I&"m 9"s#!iB&ion
108 0. 0 !i"&&"s ? 52IJ.2 @oney Combs 5261.2 Bri!uette 7tic"s 5266.2 Hillowshaped bri!uettes 10< 3. 0 SHTo&l 110 0. 0 S&o"s? 552J.2 oveabl e stoves 5 5551.2 oveabl e stoves 1 5556.2 oveabl e stoves 5514.2 'nstitutio nal moveable stoves
1063.0 * !o'#&i onSl" s Qn&i& ;Mon&h
108 1. 0
1064.0 Uni&s
1066.0 1068.0 Sl"s Mon&hl; *!i Sl" #" s U (US9 ni& ) (U S9
1 082. 0
108.0
52II.2
52I6.2 %222 7tic"s 526.2 5264.2 2%222 "gs 526.2 1 522.2 4%222 "gs 1 0<6. 0 10<4.0 5521.2 5525.2 552I.2 5526.2 22 units 555.2 4 5554.2 22 units 555.2 5512.2 22 units 551J.2 5513.2 3 units 2 6
)
52I.2 2.4 5263.2 2.16 525.2 2.12 10<8.0 552.2 552.2 54.1 5553.2 6.3I 5515.2 I.54 551I.2 5I5.4
1067.0 Annl Sl" s 106<.0 (US9)
1 08 3. 0
10 84. 0
5262.2 %63I 526J.2 6%435 521.2 4%622 10 <7. 0 18,107 5524.2 5552.2 4%16J 555J.2 %41 5511.2 1%54 5516.2 6%3I5
5265.2 4J%16J 526I.2 525%426 52.2 3I%J22 10<<.0 204,2<3 5523.2 5555.2 35%41 555I.2 45%54 551.2 13%I54 551.2 521%63I
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 552.2 'nstitutio nal&edstoves 555.2 55J.2 Customized ,vens 55I.2 113 2. 0 SHTo&l 113 . 0
113 7. 0 T/TA% SA%ES
551.2 units 556.2 3 units 1 133. 0
4
113 <. 0
1 140. 0
55.2 554.2 5416.3I 3%I54 55.2 5542.2 63I.54 4%16J 1134.0 11 36. 0 27,32< 1141.0 11 42. 0 34,46
553.2 J6%3I5 5545.2 35%41 1138.0 31,13 114.0 436,38
1143.0 1144.0 1146.0 1148.0 1147.0 114<.0 1160.0 1161.0 1162.0 116.0 1163.0 1164.0 1166.0 1168.0 1167.0 116<.0 1180.0 1181.0 1182.0 118.0 1183.0 S#h"'l" 02? Es&im&ion o = ! i"&&"s n' C oo: S &o"s Sl"s R""n"s (*Y 2 *Y 4 in US9) 11 84. 0 I&"m 9"s#!iB&ion 11 71. 0 !i"&&" s? 556I.2 @oney Combs 55.2 Bri!uette
1186.0 Y"! 1 5561.2
7tic"s 55.2 Hillowshaped bri!uettes 12 04. 0 SHTo&l
525%426 511%432 54I%63 5J%254 565%1J6 5122.2 5125.2 5121.2 512.2 5124.2 3I%J22 J%331 6%64 1%31 521%J5
12 11. 0
S&o"s?
1188.0 Y"! 2 556.2
1187.0 Y"! 5564.2
118<.0 Y"! 3 5563.2
1170.0 Y"! 4 556J.2
5566.2 556.2 552.2 555.2 551.2 4J%16J 33%62 JI%466 I4%423 61%II 554.2 553.2 55J.2 55I.2 556.2
1206.0 1208.0 1207.0 120<.0 1210.0 204,2<3 238,7< 2<<,0 0,012 66,<64 5151.2 515.2 5154.2 5153.2 515J.2 2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 515I.2 oveable 7toves Type 5 511.2 oveable 7toves Type 1 511.2 oveable 7toves Type 513.2 'nstitution al moveable stoves 5145.2 'nstitution al &ed stoves 514I.2 Customize d ,vens 12 4. 0 SHTo&l
12 4<. 0 T/TA% SA%ES
5156.2 35%41 5114.2 45%54 512.2 13%I54 51J.2 521%63I
515.2 J1%525 5113.2 4%J62 515.2 5%232 51I.2 514%122
5112.2 I4%6J 511J.2 3%6 511.2 I%41 516.2 54%I5
5115.2 61%JI1 511I.2 JJ%56 51.2 45%3 51.2 5J3%4
5111.2 5%2 5116.2 I%34 514.2 43%J4 5142.2 56%636
5141.2 J6%3I5 5146.2 35%41 1243.0 31,13 1260.0 436,38
514.2 61%I 514.2 J1%525 1244.0 311,<0 1261.0 64<,72
5144.2 %62 5132.2 I4%6J 1246.0 3<8,306 1262.0 8<6,86
5143.2 552%116 5135.2 61%JI1 1248.0 437,<0 126.0 787,301
514J.2 511%3I5 5131.2 5%2 1247.0 60<,8<6 1263.0 <86,861
1264.0 1266.0 1268.0 1267.0 126<.0 1280.0 1281.0 1282.0 128.0 1283.0 1284.0 1286.0 1288.0 1287.0 128<.0 1270.0 1271.0 1272.0 127.0 1273.0 1274.0 1276.0 1278.0 1277.0 127<.0 12<0.0 12<1.0 n
S#h"'l" 03? %on n' In&"!"s& S"!i#" S#h"'l" (In US9) S"#&io
12<.0%/AD AM/UDT (US9)
12<2.0 12<3.0 513.2 60,000 5
51J.2
Y"!s 51I.2
516.2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 12 <<. 0
Y"!
523.2 oan epayment 555.2 'nteres t 1 18. 0 To&l %on S"!i#"
100.0 1 52J.2 2 551.2 2 117.0
101.0 2 52I.2 53%222 55.2 I%122 1 1 <. 0 22,200
102.0 526.2 53%222 554.2 3%422 120.0 20,300
10.0 3 52.2 53%222 553.2 %J22 121.0 17,600
103.0 4 552.2 53%222 55J.2 5%622 122.0 16,700
12.0 123.0 124.0 126.0 128.0 127.0 12<.0 10.0 11.0 12.0 1.0 13.0 14.0 16.0 18.0 17.0 1<.0 130.0 131.0 132.0 13.0 133.0 134.0 136.0 138.0 137.0 13<.0 140.0 141.0 142.0 14.0 143.0 144.0 Tl" 041? Cl#l&ion o= Oo!:in CBi&l? I Minimm R"i!"m"n&s o= C!!"n& Ass"&s n' %iili&i"s 1
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 146.0 53I.2 (a)/ccountsreceivableG 2 days at production costs minus depreciation and interest 536.2 (b)'nventoryG 53.2 Costof7alesG 2days 5J2.2 abourCostsG 2days 5J5.2 Hrocessing Hlant ,perationsG J2 days of cost of sales \ repairs and maintenance \ storage% 5J1.2 5J.2
5J4.2
5J3.2 5JJ.2
fuel D mar"eting achinery Dvehicle maintenanceG 562days
5JI.2 5J6.2 :.B.G / ll th e local cost pr ice fac tors for th e bio fu el bri!uetting plant costs$inputs% utilities and wor"ing capital are indicated U7 dollars for the ease of computational and &nancial analysis. 16<.0 180.0 181.0 182.0 18.0 183.0 184.0 186.0 188.0 187.0 18<.0 170.0 171.0 172.0 17.0 173.0
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 174.0
4
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 176.0 Tl" 042? Cl#l&ion o= Oo!:in CBi&l? Annl *!o'#&ion Cos& Es&im&"s (In US9) 178.0
ACC/UDT @EA9 17<.0 YEAR
1 <4. 0 /B"!&in Cos&s (US$) 5425.2 Cost of 7ales
177.0 1 <0. 0 1 1396.0
1402.0
5IDADCIA% YEAR /5 /*ERATI/D 1<1.0 2 1397.0
1<2.0 1398.0
1<.0 3 1399.0
1<3.0 4 1400.0
542.2 5424.2 5423.2 542J.2 52J%236 516%2J3 534%J42 5I2%42
1408.0
542I.2 7alaries D wages 545.2 Third Harty Costs 545.2 epairs D aintenance 5413.2 7torage% #uel D ar"eting 545.2 ,Ace ,verheads 54I.2 ,ther Costs
1414.0
1420.0
1426.0
1432.0
1 4 3 8 .0
542.2 11I%662 5453.2 6%26I 5415.2 1%35I 541I.2 1I%631 54.2 5%61 54.2 3%122 1334.0 <1,48 6
5452.2 16%664 545J.2 6%26I 5411.2 1%J4 5416.2 %J5 544.2 5J%66 5442.2 2 1336.0 327,1<
5455.2 132%46 545I.2 6%26I 541.2 1%II3 541.2 42%J52 543.2 12%6I 5445.2 2 1338.0 386,< 8
5451.2 1J1%3I2 5456.2 6%26I 5414.2 1%54 542.2 44%II1 54J.2 11%4IJ 5441.2 2 1337.0 411,0<
13 3. 0 To&l /B"!&in Cos&s
1 4 4 4 .0
544.2
1450.0
5435.2
5431.2
543.2
5434.2
13 44. 0 5inn#il Cos&s (US$) 54J5.2 'nterest on edium Term oan (51* p.a.) 54JI.2 =epreciation
1456.0
543I.2
5436.2
543.2
54J2.2
1462.0
54J.2 54J4.2 54J3.2 54JJ.2 I%122 3%422 %J22 5%622
1468.0
13 8. 0 To&l 5inn#il Cos&s 54I.2
1 4 7 4 .0
54J.2 54I2.2 54I5.2 54I1.2 %J14 %J14 %J14 %J14 1384.0 1386.0 1388.0 1387.0 10,723 <,023 8,223 4,323 5465.2 5461.2 546.2 5464.2
13 74. 0 To&l *!o'#&ion Cos&s
1 4 8 6 .0
1480.0
1378.0 1377.0 137<.0 13<0.0 302,30 38,21 373,16 416,8 0 8 1
13<1.0 13<2.0 13<.0 13<3.0 13<4.0 3
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 13<6.0 13<8.0 13<7.0 13<<.0 1400.0 1401.0 1402.0 140.0 1403.0
1404.0 1406.0 1408.0 1407.0 140<.0 1410.0 S#h"'l" 04? Cl#l&ion o= Oo!:in CBi&l? Oo!:in CBi&l R"i!"m"n&s (In US9) 1411.0
I&"m
1412.0 X
1 414. 0
1 5 1 6 .0
141<.0
1 52 0. 0
Mi ni mu m da ys of
141.0 Y 1 51 7. 0
1 52 1. 0
co ver ag e
14 13. 0 1417.0
Co effi cie nt of tur nov er
R"i!"m"n&s (US9)
1422.0 2
142.0
5ll CB#i&;
1423.0 3
1424.0 4
1526. 0
1527.0
1528.0
1529.0
1530.0
1531.0
1532.0
1533 . 0I . Cur r en t ass et s 1540. 0 A. Acc oun t s
1534.0
1535.0
1536.0
1537.0
1538.0
1539.0
15 47 . 0
5345.2 2 5346.2
5341.2 51 534.2
534.2 5344.2 5343.2 534J.2 1%J5 3%J6 %I43 41%J2 5332.2 5335.2 5331.2 533.2
15 54 . 0 B. I nvent or y
5333.2
533J.2
533I.2
5336.2
533.2
53J2.2
53J1.2 2 15 68 . 0 b)Sal ar i es& Wage s53J.2 2 15 75 . 0 c)Pl an t Oper at i on s 53IJ.2 J2 1582. 0 d)Mai nt enan ce& 536.2 Repa i r 562 15 89 . 0 e)Wor ki nProc ess 532.2 15 96 . 0f ) Fi ni sh ed Produ ct s53I.2
53J.2 51 53I2.2 4 53II.2 J 5364.2 1 535.2 42 536.2
53J4.2 6%66 53I5.2 3J%I2 53I6.2 11%I6 5363.2 5%13 531.2 %526 53.2
53J3.2 52%JI1 53I1.2 3%I15 53I.2 1I%2 536J.2 5%15 53.2 52%265 5J22.2
53JJ.2 51%66I 53I.2 J1%J52 5362.2 %224 536I.2 5%6I 534.2 55%151 5J25.2
53JI.2 54%126 53I4.2 J3%J4 5365.2 J%J 5366.2 5%43I 533.2 51%25 5J21.2
recei va bl e
15 61 . 0 a)Cost ofSal es
J
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 43 5J24.2
6 5J23.2
43%36 32%42 3J%236 J2%2 5J2J.2 5J2I.2 5J26.2 5J2.2
5J55.2 53 bel ow ) 5J56.2
5J51.2 14 5J5.2
5J5.2 5J54.2 5J53.2 5J5J.2 51%421 51%I 5%6I1 54%3J 5J12.2 5J15.2 5J11.2 5J1.2
16 24 . 0
5J13.2
5J1J.2
5J1I.2
16 31 . 0 D. Cur r ent ass et s 16 38 . 0
5J1.2 ] 5J.2
5J.2 ] 5J42.2
5J4.2 5J3.2 5JJ.2 5JI.2 56%464 126%14 12%II4 14J%6J 5J45.2 5J41.2 5J4.2 5J44.2
1645 . 0I I . Cur r en t
5J4J.2
5J4I.2
5J46.2
1659. 0
2 5JJ2.2
5J34.2 51 5JJ5.2
5J33.2 5J3J.2 5J3I.2 5J36.2 -51%6 -53%33J -56%J44 -12%463 5JJ1.2 5JJ.2 5JJ4.2 5JJ3.2
1666 . 0I I I . Wor ki ng
5JJI.2
5JJ6.2
5JJ.2
Wor ki ng5JI4.2
5JI3.2
i n 5J65.2
5J61.2
5JIJ.2 5JII.2 5JI6.2 5JI.2 5IJ%46J 51%J66 151%52 11J%325 5J6.2 5J64.2 5J63.2 5J6J.2 ] 5J%121 5%441 54%I5
16 03 . 0 161 0. 0 C. Cas hi nhan d 161 7. 0
(f r om V
Li abi l i ti es 16 52 . 0 A. Acc ou nt s payabl e5J3.2
Cap i t al 16 73 . 0 A. Ne t Cap i t al 168 0. 0 B.
I nc r eas e
Wor ki ngCapi t al
5J16.2
5J4.2
5JI2.2
5J32.2
5JI5.2
5J35.2
5JI1.2
5J66.2
5J6.2
5J2.2
5J3.2 ] Pr od uct i on Cost s 17 01 . 0 5I21.2
5JJ.2 ] 5I2.2
5JI.2 5J6.2 5J.2 5I22.2 421%422 4I%15I 464%5J5 35J%I 5I24.2 5I23.2 5I2J.2 5I2I.2
5I2.2 ] 1715. 0 Ut i l i t i es 5I5J.2 ] 17 22 . 0 5I1.2 Dep reci ati on ] 17 29 . 0 5I2.2 53 17 36 . 0 V.Requi r ed as Ch 5II.2
5I52.2 ] 5I5I.2 ] 5I14.2 ] 5I5.2 14 5I6.2
5I55.2 I2%25 5I56.2 5%21 5I13.2 %J14 5I1.2 1I%J3 5I.2
5I51.2 64%J 5I5.2 I%344 5I1J.2 %J14 5I.2 55%32 5I42.2
5I5.2 521%16J 5I12.2 43%4 5I1I.2 %J14 5I4.2 1%5I 5I45.2
5I54.2 553%12J 5I15.2 4I%J25 5I16.2 %J14 5I3.2 32%21 5I41.2
51%421
51%I
5%6I1
54%3J
1708. 0 Le ss: Raw Mat eri al s
Bal ance
183.0 1833.0 1834.0 1836.0
]
]
I
5J1.2
5J2.2
1694 . 0I V.Total
1687. 0
5J5.2
5J1.2
5J.2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 1838.0 S#h"'l" 06? 5i N"' Ass"&s n ' 9"B!"#i&ion Al loLn#"s (In US9) 18 37. 0
Y"!
18 43. 0 5IJ2.2
/sset
18 3<. 0 1 5I33.2 'nitial 5IJ5.2 Malue
1840.0 2 5I3J.2 =ep 5IJ1.2 /llowanc e 5IJ6.2
1841.0 5I3I.2 =ep 5IJ.2 /llowanc e 5IJ.2
1842.0 3 5I36.2 =ep 5IJ4.2 /llowanc e 5II2.2
184.0 4 5I3.2 =ep 5IJ3.2 /llowanc e 5II5.2
5IJJ.2
5IJI.2
5II1.2 Hlant Building 5II6.2
5II.2 5II4.2 5II3.2 5IIJ.2 5III.2 3%16J 1J4 1J4 1J4 1J4 5II.2 5I62.2 5I65.2 5I61.2 5I6.2
5I64.2 Hroduction Hlant and 5I2.2 E!uipment
5I63.2
5I6J.2
5I6I.2
5I66.2
5I6.2
5IJ.2
5I5.2 5I1.2 5I.2 5I4.2 5I3.2 52%5I5 5%25I 5%25I 5%25I 5%25I 5II.2 5I6.2 5I.2 5622.2 5625.2
5621.2 ,Ace E!uipment 5626.2
562.2 5624.2 5623.2 562J.2 562I.2 3I2 3I 3I 3I 3I 562.2 5652.2 5655.2 5651.2 565.2
5654.2 otor Mehicles 17 20. 0
5653.2 565J.2 565I.2 5656.2 565.2 55%42 1%16J 1%16J 1%16J 1%16J 5615.2 5611.2 561.2 5614.2 5613.2
17 26. 0
1 728. 0 1727.0 172<.0 170.0 171.0 28,348 ,623 ,623 ,623 ,623
T/TA%S
172.0 17.0 173.0 174.0 176.0 178.0 177.0 17<.0 1730.0 1731.0 1732.0 173.0 1733.0 1734.0 6
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 1736.0 1738.0 1737.0 173<.0 1740.0 1741.0 1742.0 174.0 1743.0
1744.0 1746.0 1748.0
S#h"'l" 08? Chn" in To&l In"s&m"n& Cos&s (In US9)
17 47. 0
*"!io'
1 85 9 . 0
17 61. 0
Y"!
1762.0 1
17 67. 0
1869.0
56I3.25. #ied 'nvestment Costs
56IJ.2 J% 2 J 566.2 J% 2 J 562.22 56I.2 524.23% 4 3 2 555.2 556.2 2% 2 2
5661.2a) 'nitial &ed investment costs
566.2b ) eplacement 56J.2 52.21. Hre-operational epenses
552.2 55I.2. 7tart-Up 'nventory
514.2 55.2.
1760.0
Co nst ruc tio n
2 513.2 51.22
176.0 2 1870.0
1763.0 1871.0
5ll CB#i&;
1764.0 3 1872.0
56II.2 2
56I6.2 2
56I.2 2
5664.2 2
5663.2 2
566J.2 2
565.22 566.2 523.22
561.22 56.2 52J.22
56.22 522.2 52I.22
551.2 55.2 2
55.2 512.2 2
554.2 515.2 2
51J.2 5.25 I J% 4 6
51I.2 54.25 J% 1 2 1
516.2 53.25 % 4 4 1
1766.0 4 1873.0
1768.0 To&l 1874.0
5662.2 2
5665.2 J% 2 J 566I.2 2 5666.2 J% 2 J 564.22 563.22 525.2 521.2 526.22 52.23 % 4 3 2 553.2 55J.2 511.2 2 51.2 2% 2 2 2 51.2 52.2 5J.25 5I.21 4% 1 J% I 3 5 2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 1<7.0 1<34.0 To&l In"s&m"n& Cos&s
J 5 5.2 542.2 545.2 541.2 54.2 544.2 1<36.0 1<38.0 1<37.0 1<3<.0 1<40.0 1<41.0 81,376 186,376 16,202 1<,332 13,81 2<8,<78
1<42.0 1<4.0 1<43.0
S#h"'l" 07? Chn" in To&l Ass"&s (In US9)
1< 44. 0
*"!io'
1 95 6 . 0
1< 47. 0
Y"!
1<4<.0 1
1<48.0
Co nst ruc
5ll CB#i&;
tio n
1< 64. 0 5I1.25. #ied 'nvestment Costs
5I.2a) 'nitial &ed investment costs
56J.2b) eplacement 5.2 1222.21. Hre-operational epenses
122I.2 1254.2. 7tart-Up 'nventory
1215.2 1216.2. Current /ssets increase
204.0 2032.0 To&l In"s&m"n& Cos&s
1966.0
5I.2 J% 2 J 562.2 J% 2 J 56I.2 2
1<60.0 2 1967.0
1<61.0 1968.0
1<62.0 3 1969.0
1<6.0 4 1970.0
1<63.0 To&l 1971.0
5I4.2 2
5I3.2 2
5IJ.2 2
5II.2 2
565.2 2 566.2 2
561.2 2 56.2 2
56.2 2 52.2 2
564.2 2 55.2 2
54.2 53.2 5J.2 5I.2 1225.23% 4 3 2 1221.2 2 122.2 2 1224.2 2 1226.2 122.2 1252.2 1255.2 1253.2 2% 2 2 2 125J.2 2 125I.2 2 1256.2 2 1211.2 121.2 1214.2 1213.2 122.25 6 125.25 121.21 % 6% 1% 4 I 3 6 3 121.22 4 2 12J.2 12I.2 126.2 12.2
203.0 2033.0 2034.0 81,376 17<,373 17,84<
203<.0 522
56.2
5I6.2 J% 2 J 563.2 J% 2 J 51.2 2
12.25 J% 1 5 1242.2
5.2 122J.23% 4 3 2 125.2 1212.2 2% 2 2 2 121I.2 124.21 4 J% 6 J 1245.2
2036.0 2038.0 22,40 16,21
2037.0 17,382
1223.2 2 1251.2
125.2 2 121J.2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 2040.0 2041.0 2042.0 204.0 2043.0 2044.0 2046.0 S#h"'l"
*"!io'
20 58 . 0
206 4. 0
Y"!
2066.0 1
2068.0 2
2074.0
2075.0
Co nst ruc tio
2 0 5 9 .0
20 60 . 0
2 06 1. 0
2 0 6 2 .0
2 0 6 3 .0
2 0 6 4 .0
2080.0 4
2081.0 Sl l
2082.0 To&l
n
208.0 Cos&s (US 9oll!s) 2071.0 A. Csh inoL
126.2 5. #inancial resources total
12I.2 1. 7ales revenue total
2067.0 2076.0
206<.0 3 2077.0
2078.0
2079.0
2080.0
2078.0
1261.2I 5% 4 6 J
126.23 4 J% 4 I
1264.2J 3 % 6 1
1263.2I J% I J
126J.26 I 6% 4 2 5
122.2I 5% 4 6 J 126.2]
125.2 ]
121.2 ]
12.2 ]
124.2]
123.2 ]
12.23 4 J% 4 I
1522.2J 3 % 6 1
1525.2I J% I J
1521.26 I 6% 4 2 5
152.2]
Z
2104.0 211.0 . Csh o&oL
152J.2 152I.2 1526.2 152.2 1552.2 1555.2 1554.21553.2155J.2155I.21556.2155.21 I J 3 J J 5% 4 2 4 % 4 % 5% 6% % 6 3 5 6 6 2 J 5 6 6 J 5 6 5 I
1515.2 5. Total assets schedule 151.2 including replacements
1511.2 152.2I 5% 4
15 1.2 155.25 6 %
151 4.2 151.25 6% I
525
1 513.2 15.21 1% 3
151 J.2 154.25 J% 1
15 1I.2 153.21 %
1266.21% 3 1% 6 6 12J.2 I 5% 4 6 J 1524.21 % 6 6 5% I 2112.0
1512.21% 1 J 3% J 4 5 1516.2 15J.2I % 5
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 6 J
4 6 4 15.2 5% 3 I J
3
2
5
1542.24 1 6% 5
1545.24 I J% I
1541.23 5 5% 2
154.2]
1532.2 1536.25% 6 2 2
1535.2 153.2]
15I.2 1. ,perating Costs (Cost of 7ales)
156.2]
1543.2 . =ebt 7ervice 153.2 a) 'nterest
154J.2 1534.2]
154I.2 1533.2I% 1 2 2
1546.2 153J.23% 4 2 2
154.2 153I.2% J 2 2
15J5.2 b) epayments
15J1.2]
15J.2 15II.24 . Corporate ta
15I2.2 15I6.2]
15J.25 3% 2 2 2 15I5.2 15I.2
15J4.25 3% 2 2 2 15I1.2 1562.2J
15J3.215JJ.25 5 3% 3% 2 2 2 2 2 2 15I.2 15I4.2 1565.21561.2 5
% I 6
% J
2% J 2
2 3% 2 6 6
156J.2 154.2]
156I.2 153.24 J 2
1566.2 15J.24 J 2
156.2 15I.24 J 2
152.2 156.24 J 2
2201.0 220<.0 C. S!Bls '"+#i&
1121.2 1152.22
2218.0 2224.0 9. Cml&i" #sh l.
1156.2
112.2 1124.2 1123.2 112J.2 1155.21151.25 115.25 1154.21 1 6 1 I% 6% I% 6% 2 J 6 3 6 4 4 5 1 1 115.2 1112.2 1115.2 1111.2
1563.2 15.2 3. =ividends 4* on e!uity
111J.22
111I.2 I% 2
1116.2 5% 3 J
521
111.21 5 % 4
112.24 4 I%
2 5
15JI.2
15I3.2 156.2]
I 5 1544.25% 6 2 6% 2 5 3 1531.2 15J2.25 6% 2 2 2 15J6.2J 2% 2 2 2 15IJ.2 1564.21 6% J 5 3
155.2 15.2]
2207.0
1153.21 % 2 5 2223.0
115.2J 6 I% 1
151.2 1122.25% 6 4 2 1126.2 115J.2J 6 I% 1 4 1 2224.0 2232.0
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 6 5
22.0 2231.0
2234.0
2235.0
2 2236.0
2 2237.0
4 5 2238.0
4 1 2239.0
2240.0
223.0 2<,01
1141.2 7alvage values. andG 6%3I5 4$3 of buildingsG 4%11
2233.0 2234.0 2236.0 2238.0 2237.0 223<.0 2240.0 2241.0 2242.0 224.0 2243.0 2244.0 2246.0 2248.0 2247.0 224<.0 2260.0 S#h"'l" 1 0? * !o"#&"' C shoL Tl" n' C l#l&ion o = *!"s"n& Vl" (In US9) 2263.0
2264.0 3
2266.0 4
2271.0
2272.0
2273.0
2274.0
2275.0
2276.0
2278.0
2279.0
2280.0
2281.0
2282.0
2283.0
2284.0
116J.2I 5% 4 6 J 114.2]
116I.2 ]
1166.2 ]
116.2 ]
112.2 ]
115.2 ]
113.2 1% 6 J
11J.25 4 I% 6 J
11I.21 5 2% 6
116.21 4 3% 1 2
2299.0
_
125.2=epreciation
121.2]
12.2 % J 1 4
5 124.2% J 1 4
123.2% J 1 4
3 12J.2% J 1 4
2307.0
_
12.2'nterest /dd bac"
152.2
155.2
151.2
15.2
2261.0
Y"!
226<.0 2288.0 1163.2'nvestment Costs
11.2:et Hro&t after Ta
2262.0 1 2280.0 Cons&!.
226.0 2
52
154.2
2268.0 Sl l
1 53.2
2267.0 To&l
111.2 I 5% 4 6 J 122.2J J% I J 6 126.25 4% 4 J 15J.2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 15I.2
id-term oan
156.2]
15.2I % 1 2 2
112.23% 4 2 2
115.2% J 2 2
111.25% 6 2 2
2323.0
_
113.2:ET C/7@ #,<7
114.25 6% 2 2 2 11.26 I% 2 I 142.2 146.2]
11J.211I.25 116.25 11.21 12.21 15.21 I 2 3 5 3 5% % J% 6% 2% % 4 J 6 2 J 6 6 6 J 1 2 J I 3 5 1.2 14.2 13.2 1J.2 1I.2 16.2 1.2 145.2=iscount 141.22. 14.22. 144.22. 143.22. 14J.22. 14I.22. #actors at 54* 6 I J 3 3 3 I J I 5 5 I 3 1 1 3 5 4 4 14.2 HM at 54* 132.2 135.2I 131.25 13.25 134.25 133.25 13J.23 J % 2 1 1 2 1% I 3% % 2% 4% J% I 6 6 5 5 1 3 2 I 5 I J 6 I 3 I 5 13I.2: HM at 54* 136.2 13.2 1J2.2 1J5.2 1J1.2 1J.2 1J4.23 2 J% 3
1J3.2=iscount #actors at 5I*
1I.2 HM at 5I*
1JJ.22. 6 3 4 I 1I4.2 J 5% 2
1JI.22. I 2 3 1I3.2I 3% I 4
165.2:HM at 5I*
2382.0
2383.0
1J6.22. J 1 4 4 1IJ.2 I% 3 2384.0
1J.22. 3 I 1II.25 5 J% 6 2 2385.0
1I2.22. 4 3 J 5 1I6.25 5 4% 5 1 2386.0
1I5.22. 4 3 J 5 1I.25 2 % 5 4 3
J 5 1I1.2]
162.24 3 1% 4 4 2 166.24 3 1%
2387.0
4 4 2 2390.0 16.2 2398.0 2<8.0 1423.2'nternal ate of eturn 561.2*
2391.0
2392.0
2393.0
2394.0
2395.0
2396.0
2399.0
2400.0
2401.0
2402.0
2403.0
2404.0
2406.0
2407.0
2408.0
2409.0
2410.0
2411.0
524
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 2312.0
2413.0
1412.2:HM at 54* 032J%3J5
2421.0
2327.0
2429.0
14J.2:HM at 5I* 0431%442
2437.0
2414.0
2422.0
2415.0
2423.0
2430.0 2438.0
2416.0
2424.0
2431.0
2432.0
2439.0
2440.0
2417.0
2425.0
2433.0 2441.0
1456.25 6 1. 2 * 2426.0
2434.0 2442.0
2419.0
2427.0
2435.0 2443.0
2333.0 2334.0 2336.0 2338.0 2337.0 233<.0 2340.0 2341.0 2342.0 234.0 2343.0 2344.0 2346.0 2348.0 2347.0 234<.0 2360.0 2361.0
S#h"'l" 11? *!o"#&"' In#om" S&&"m"n& (In US9)
2362.0
Y"!
23 67. 0 14I4.2
7ales
1462.2
Cost of 7ales
146J.2 141.2
K,77 H,#'T
146.2 1324.2 essG ,perating Costs
236.0 1 14J.2
2363.0 2 14I2.2
2364.0 14I5.2
2366.0 3 14I1.2
2368.0 4 14I.2
14I3.2 ] 1465.2 ] 146I.2
14IJ.2 14II.2 14I6.2 14I.2 34J%4I J3%61 IJ%IJ 6I6%425 1461.2 146.2 1464.2 1463.2 52J%236 516%2J3 534%J42 5I2%42 1466.2 146.2 142.2 145.2
14.2 ] 14.2
144.2 143.2 14J.2 14I.2 442%I 35%I36 J41%2J I2I%55 1322.2 1325.2 1321.2 132.2
1323.2
132J.2 523
132I.2
1326.2
132.2
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 1352.2 (ecl. Cost of 7ales) 135J.2
1355.2 ] 135I.2
1351.2 135.2 1354.2 1353.2 163%356 22%516 11%1I 42%65 1356.2 135.2 1312.2 1315.2
1311.2 ,HE/T':K H,#'T 1316.2
131.2 ] 131.2
1314.2 1313.2 131J.2 131I.2 534%6J5 15%J2 5%I JI%2 132.2 135.2 131.2 13.2
134.2 essG/ ccrued interest on 1342.2 edium-Term oan (^ 51* p.a.) 134J.2 essG /nnual epayments 1331.2
133.2
13J.2
1345.2 ] 134I.2 ] 133.2
1341.2 134.2 1344.2 1343.2 I%122 3%422 %J22 5%622 1346.2 134.2 1332.2 1335.2 53%222 53%222 53%222 53%222 1334.2 1333.2 133J.2 133I.2
1336.2 :ET H,#'T BE#,E T/_ 13J4.2
133.2 ] 13J3.2
13J2.2 13J5.2 13J1.2 13J.2 51%JJ5 155%12 25%5 32%1 13JJ.2 13JI.2 13J6.2 13J.2
13I2.2 2* 13IJ.2
Corporation Ta
13I5.2 ] 13II.2
13I1.2 13I.2 13I4.2 13I3.2 %I6 J%J 2%J2 523%266 13I6.2 13I.2 1362.2 1365.2
1361.2
:ETH,#'T
136.2
1364.2
1366.2
] 136.2
1%6J 135.2 54I%6J5 131.2 152%6 13.2 143%123 132.2
134.2 /ccumulated :et Hro&t (oss) 1J22.2 :et Hro&t argin 1J2J.2 Kross Hro&t argin 1J51.2 ate of eturn on 'nvestment 1J56.2 ,perating Hro&t argin
133.2 ] 1J25.2 ] 1J2I.2
13J.2 1%6J 1J21.2 2.5J 1J26.2 2.62J 1J54.2 52* 1J12.2 2.16
1J5.2 ] 1J5.2 ]
2623.0 2624.0 2626.0 2628.0 2627.0 262<.0 260.0 261.0 52J
13I.2
1363.2
13I.2 142%I14 1J2.2 2.1145 1J2.2 2.62J 1J53.2 12I* 1J15.2 2.35
136.2
136J.2
136.2 435%3J 1J24.2 2.1J3 1J52.2 2.62J 1J5J.2 14.4* 1J11.2 2.425
13.2
136I.2
13.2 JJ%IJ6 1J23.2 2.1I 1J55.2 2.62J 1J5I.2 4* 1J1.2 2.456
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 262.0 26.0 263.0 264.0 266.0 S#h"'l" 12? *!o"#&"' ln#" Sh""& (In US9) 268.0 CA*ITA% EM*%/YE9? 1J4.27hare Capital
267.0 YR.1
26<.0 YR.2
1J44.2
1J4.2etained Earnings
1J32.2
1J43.2 1J4J.2 1J4I.2 1J46.2 55%46 55%46 55%46 55%46 1J35.2 1J31.2 1J3.2 1J34.2
2644.0 Sh!"hol'"!-s Ei&;9"+#i& 2661.0
2646.0
1JJI.2ong-Term iabilities
1JJ6.2
268.0
1JI4.2
268<.0
1J62.2
1JJ.2 1JI2.2 1JI5.2 1JI1.2 J2%222 43%222 2%222 53%222 2684.0 2686.0 2688.0 2687.0 163,42 2<8,21 3<,042 82,248 1J65.2 1J61.2 1J6.2 1J64.2
2674.0 EM*%/YMEDT /5 CA*ITA%? 26<1.0
1J6J.2
1J6I.2
1J66.2
1J6.2
1J1.2
1J.2
1J4.2
1J3.2
1J2.2 1JJ.2
1JI.2Hlant Buildings
1J6.2 3%16J 1I24.2 52%5I5 1I52.2 3I2 1I5J.2 55%42 1I11.2
1J.2 3%211 1I23.2 %534 1I55.2 35 1I5I.2 %544 282.0 2,7 282<.0 160,818 284.0
1I22.2 4%I3I 1I2J.2 6%5I 1I51.2 43J 1I56.2 J%636 2823.0 20,207 280.0 2<8,<60 286.0
1I25.2 4%4 1I2I.2 I%512 1I5.2 1I5.2 4%3I1 2824.0 16,473 281.0 3<7,812 288.0
1I21.2 4%11 1I26.2 J%52 1I54.2 41 1I12.2 1%16J 2826.0 12,<4< 282.0 82,47 287.0
1I45.2 1%J5 1I4I.2 544%435 1I3.2 51%421 1I3.2 -16%IJI 52I
1I41.2 3%J6 1I46.2 53%366 1I34.2 51%I 1IJ2.2 6%I5J
1I4.2 %I43 1I4.2 5II%53I 1I33.2 5%6I1 1IJ5.2 1JI%6
1I44.2 41%J2 1I32.2 56%I65 1I3J.2 54%3J 1IJ1.2 463%3J
1I2.2Hroduction Hlant E!uip. D achy 1I2.2,Ace E!uipment 1I53.2Mehicles
2821.0 %/DGHTERM ASSETS? 2828.0 CURREDT ASSETS? 28.0
1I4.2
1I.2/ccounts eceivable
1I42.2
1I43.27toc" ('nventory)
1I4J.2
1I35.2Ban" Balance and Cash
1I31.2
1I3I.2,ther Current /ssets
1I36.2
2631.0 YR.3
2632.0 YR.4
1%6J 142%I14 435%3J JJ%IJ6 2648.0 2647.0 264<.0 2660.0 103,42 242,21 36,042 807,248 1JJ.2 1JJ4.2 1JJ3.2 1JJJ.2
1JJ1.2
1I16.2
2630.0 YR.
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 286.0
1IJ4.2
1IJ3.2
286<.0 CURREDT %IAI%ITIES? 1II3.2/ccounts Hayable
1II2.2
1I65.2Current Hortion of ongterm 1I6I.2iabilities
1I61.2
2881.0 2882.0 288.0 2883.0 20,1<7 20,<46 22,233 22,274 1III.2 1II6.2 1II.2 1I62.2 51%6 53%33J 56%J44 12%463 1I6.2 1I64.2 1I63.2 1I6J.2
28<.0
1I4.2
28<<.0 DET CURREDT ASSETS? 2704.0 T/TA% CA*ITA%
2700.0
2711.0 2718.0
2812.0
2813.0
T/TA% ASSETS
2818.0
271<.0 2720.0 2721.0 2722.0 173,440 17,167 414,2<4 834,432
272.0 2723.0 2724.0 2726.0 2728.0 2727.0 272<.0 270.0 271.0
S#h"'l" 1 ? Cl#l&ion o= *;#: *" !io' (In US9)
27 2. 0
YEARITEM
27 8. 0 1641.2
:etHro&t
164I.2
'nterest
1631.2
=epreciation
163I.2
Hro&t
2762.0 2768.0 2782.0 Y"!
1IIJ.2
1I66.2
1IJJ.2
1IJI.2
1IJ6.2
1I6.2 1I2.2 1I5.2 1I1.2 I%122 3%422 %J22 5%622 1I3.2 1IJ.2 1II.2 1I6.2
2701.0 2702.0 270.0 2703.0 130,41< 288,003 386,367 810,2<8 2708.0 2707.0 270<.0 2710.0 163,42 2<8,21 3<,042 82,248
2706.0
27.0 2 166.2
2814.0
2815.0
273.0 16.2
274.0 3 1642.2
276.0 4 1645.2
1644.2 54I%6J5 164.2 3%422 1634.2 %J14 163.2 53J%663
1643.2 152%6 1632.2 %J22 1633.2 %J14 16J2.2 156%2J
164J.2 143%123 1635.2 5%622 163J.2 %J14 16J5.2 132%J1
2863.0
2864.0
2865.0
2866.0
2868.0
2869.0
2870.0
2871.0
278.0 Am o n& Bi
2783.0l n #" o=
2875.0
2876.0
164.2 1%6J 1646.2 I%122 163.2 %J14 1636.2 52%J6I
526
2816.0
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN ' 2788.0
2787.0 #: =!o m 277.0 [B! o+& s[
2772.0
166I.2
5
1666.2 2
161.2
1
278<.0&o& l
2880.0
2881.0
2773.0In "s& m" n&
2885.0
2886.0
166.2 -I5%46J 164.2 1%125 16.2 56%26J 124.2 42I%54 12.2 J3I%II6 154.2 J3I%II6 15.2 J3I%II6 114.2 J3I%II6 11.2 J3I%II6 14.2 J3I%II6
162.2 -55%46 163.2 1%56 122.2 14%26 123.2 4JI%54J 152.2 I5I%II3 153.2 J3I%II6 112.2 J3I%II6 113.2 J3I%II6 12.2 J3I%II6 13.2 J3I%II6
2891.0
2939.0
2940.0
16.2 52%J6I 16I.2 166.2 53J%663 121.2 4 12.2 156%2J 12I.2 3 126.2 132%J1 151.2 J 15.2 2 15I.2 I 156.2 2 111.2 6 11.2 2 11I.2 116.2 2 11.2 52 1.2 2 2< 8. 0 *; #: *"!io' \ 1.6< 2938.0 YEARS
2<31.0 2<32.0 2<3.0 2<33.0 2<34.0 2<36.0 2<38.0 2<37.0 2<3<.0 2<40.0 2<41.0 2<42.0 2<4.0 2<43.0 2<44.0 52
2896.0
2901.0
2906.0
2911.0
2916.0
2921.0
2926.0
2931.0
2936.0
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN 2<46.0 2<48.0 2<47.0 S#h"'l" 13? sin"ss R&iosR&io Anl;sis 2< 4<. 0
*"!io'
2<60.0 C o ns &! # &i o n
2<61.0 CB#i&;
2< 62. 0
Y"!
2 <6. 0
2<63.0
2<64.0
2< 67. 0
Sl"s G!oL&h
1 1J.2
2 1I2.2
2< 83. 0
1I3.2
1IJ.2
3 4 1I5.2 1I1.2 1I.2 3* 3* 3* 1II.2 1I6.2 1I.2
2<70.0 *"!#"n& o= To&l Ass"&s 2< 76. 0 A##on&s R"#"il" 2< <2. 0 In"n&o!;
165.2
161.2
16.2
164.2
163.2
16I.2
2< <7. 0 /&h"! C!!"n& Ass"&s 0 03. 0 To&l C !!"n& Ass"&s 0 10. 0 %onH&"!m Ass"&s 0 16. 0 To&l Ass"&s
1.2
0 22. 0
21.2
166.2 5I.J6* 14.2 I6.1I* 222.2 -53.3* 22J.2 6I.2* 251.2 51.5* 256.2 522.22 * 214.2
16.2 55.11* 13.2 32.5J* 225.2 16.12* 22I.2 .J3* 25.2 J.3* 25.2 522.22 * 213.2
12.2 I.I5* 1J.2 4.6* 221.2 31.22* 226.2 J.I6* 254.2 .11* 212.2 522.22 * 21J.2
15.2 3.I1* 1I.2 13.4J* 22.2 J3.5* 22.2 6.1J* 253.2 5.I4* 215.2 522.22 * 21I.2
0 27. 0 C!!"n& %iili&i"s 0 3. 0 %onH&"!m liili&i"s 0 30. 0 To&l %iili&i"s 0 36. 0 D"& Oo!&h (To&l CBi&l) 0 42. 0
21.2
23.2
22.2 52.4* 2J.2 1.35* 241.2 4.4J* 246.2 6.2J* 234.2
25.2 J.3* 2I.2 54.54* 24.2 12.I* 24.2 .45* 233.2
21.2 4.1* 26.2 3.61* 244.2 52.54* 232.2 3.J6* 23J.2
2.2 1.* 2.2 1.25* 243.2 3.22* 235.2 I.25* 23I.2
047.0 *"!#"n& o= R""n"s 0 63. 0 R""n"s
23.2
2J2.2
2J5.2
2J1.2
2J.2
1.2
223.2 255.2 25I.2
23.2 245.2 24I.2
2J3.2
5ll
2<66.0
2<68.0
2JJ.2 2JI.2 2J6.2 2J.2 522.22 522.22 522.22 522.22 * * * * 552
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JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN <1.0 <2.0 <.0 <3.0 A**ED9IX I? ASSIGDMEDTS @AD9%E9 AD9 C/M*%ETE9 T/ 9ATE Y J/SA <4.0<6.0 Cli"n& <8.0 Assinm"n& Do 5. 6.2 ,ld >ampala .2 7upply of bri!uettes Hrimary 7chool 1. 422.2 Buy #resh 425.2 7upply of bri!uettes. estaurant . 421.2 /"andonda 42.2 Construction of bri!uette in stitutional #amily stoves. 4. 424.2 >ibale Miew 423.2 Capacity building for the sta8 of 5 td >ibale Miew Eco tourism site to adapt bri!uette production and usage to conserve >ibale :ational Har". 3. 42J.2 Oouth on Trac" 42I.2 7upply of Bri!uette production 1 - Fin;a e!uipments. J. 426.2 Kroup
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I. 452.2 J
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6. 451.2 Bui"we
Caritas
family
. 453.2 Compassion Busia cluster
42.2 Capacity bu ilding fo r gr oup me mbers in bri!uette production% entrepreneurship s"ills and supply of bri!uette production e!uipments. 455.2 7upply of tools% e!uipments and machines and eposure training to waste utilization for community groups. 45.2 Training for trainer of trainers (T,T) in charcoal bri!uette ma"ing and tailored energy saving stove ma"ing. 454.2 Train in business and &nancial management s"ills. 45J.2 Bri!uette training out of biodegradable waste 45I.2 Train in business and &nancial management s"ills 456.2achines. 7upply of Bri!uette Hroduction 412.2 Energy saving stoves training for entrepreneur groups.
52. 45.2 iving Earth #oundation U> D /CE=, ? 7ierra eone. 55. 415.2 Bread for ife 411.2
553
Bri!uette
training
and
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JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN supply. 51. 414.2 7T. Therese 413.2 7upply of Bri!uette press machines. 41.2 Oouth =evelopment Hro;ect 5. 41J.2 7trong Oouth 41I.2 7upply of energy saving stove for =evelopment metallic iners. 'nternational 54. 416.2 iving Earth 41.2 Bri!uette training for Oouth in @oima Uganda municipality. 53. 42.2 = D F ' mpe 45.2 Training in bri!uette ma"ing D 7 upply td of Bri!uette press machines. 5J. 41.2 F: Consults 4.2 Environmental and 7ocial 'mpact /ssessment (E7'/) for the Bududa ? :abweya Kravity #low 7cheme contracted by obert :dyabarema the main consultant. 5I. 44.2 iving Earth 43.2 Bri!uette tr aining fo r Oouth gr oup in Uganda Bulisa =istrict ? >ihungya 7ub County. 56. 4J.2 iving Earth 4I.2 Bri!uette training for CB,s and :K,s #oundation- U> in a"eni Town - 7ierra eone. 5. 46.2 >ic" Carbon 4.2 7upply of Bri!uette press machines. out of >itchen Uganda (C,,>12. 442.2Uganda) >ittutu Child =evelopment Centre 15. 441.2 >yebando Baso"a >wavula /ssociation. 11. 444.2 Boroboro anufacturing Company 1. 44J.2 ubaga Child =evelopment Centre 14. 446.2 /,:>/ td
445.2
7upply of Bri!uette press machines.
44.2
7upply of Bri!uette press machines.
443.2
7upply of Bri!uette press machines.
44I.2
7upply of Bri!uette press machines.
44.2 Bri!uette training and 7upply of Bri!uette press machines. 13. 432.2 'ndividuals 435.2 Conduct functional s"ills training in organised by EU. bri!uette production and energy saving stoves. 1J. 431.2 Kolden Bees 43.2 Building capacity of bee "eepers to td under 7:M adopt honey production through use of 55J
JOSAGREEN TECHNOLOGIES FUEL BRIQUETTES BUSINESS PLAN transitional hives in districts of >asese% >abarole% >amwenge >yegegwa% >yen;o;o% Bundibu;o% /rua% Oumbe% oyo% >apchorwa and ira in partnership with Kolden Bees. 1I. 434.2 Bu"anga Child 433.2 7upply of Bri!uette press machines. =evelopment Centre 16. 43J.2 >abugo 43I.2 7upply of institutional stoves D estaurant bri!uettes. 1. 436.2 Busulumba 43.2 7upply of Bri!uette press machines. Child =evelopment Centre 2. 4J2.2 'ndividuals 4J5.2 Train in bri!uette production% clients organised by mar"eting and &nancial management. EU 5. 4J1.2 7elf @elp 4J.2 Hrovide training in Hlastic collection Kroups and bri!uette entreprise for cluster level groups. 1. 4J4.2
Caritas ugazi
4J.2 Conducted training in Bri!uette ma"ing and Energy saving stove ma"ing at >ayunga oman Catholic Harish.
4I2.2
55I
