1. PRODUCTION AND INTRODUCTON TECHNOLOGY PLANMARKETING PLAN FINANCIAL PLAN

2. RE-INTRODUCED:1. E-10 has been inaugurated in Pakistan by Prime Ministers Adviser for Petroleum Dr Asim Hussain accompanied by Minister for Industries Mian Manzoor Ahmad Wattoo.2. Ethanol-mixed fuel will be sold at Rs2.4 per liter less than regular petrol. 3. Energy in Different FuelsCan Have Very Different QualitiesFossil Energy Ratio (FER) =energy in fuel/fossil energy input2.01.51.01.360.50.980.810.450.0Cell. EtOH Corn EtOH Coal Gasoline Electricity 4. ETHANOL FORMULA: Ethanol, also called ethyl alcohol, pure alcohol, grain alcohol,drinking alcohol, volatile, flammable, colorless liquid. Best known as the type of alcohol found in alcoholic beverages it isalso used in thermometers as a solvent and as a fuel. 5. 1. Pakistan is becoming ethanol producers.2. New technologies for producing ethanol from agricultural, forestry,municipal wastes and residues are the focus of major research and development efforts around the world. 6. Pakistan today has 4 largest coal reserves Pakistan can greatly reduce its petrol consumption immediately by1)Converting the Power Plants run on furnace oil into Indigenous coal based power plants.2)Oil can be blended by 10 % ethanol immediately there bybringing down the petrol consumption by atleast 30-40m ilion barrels per year 7. ChemistryStructure of ethanol molecule.All bonds are single bondsGlucose (a simple sugar) is created in the plant by photosynthesis 6 CO2 + 6 H2O + light C6H12O6 + 6 O2During ethanol fermentation glucose is decomposed into ethanol and carbon dioxide. C6H12O6 2 CH3CH2OH+ 2 CO2 + heat 8. During combustion ethanol reacts with oxygen to producecarbon dioxide, waterand heat: CH3CH2OH + 3 O2 2 CO2 + 3 H2O + heatEthanol may also be produced industrially from ethene(ethylene). Addition of water to the double bond converts etheneto ethanol:C2H4 + H2O CH3CH2OHThis is done in the presence of an acid which catalyzes thereaction, but is not consumed. The ethene is produced frompetroleum by steam cracking 9. It is an alternative fuel made from plants that containbasic sugars. The sugars are fermented and distilled into carbondioxide and alcohol. Ethanol is also a renewable fuel source because itcomes from corn, barley and wheat stalks, which can beharvested and then replanted. 10. Engine Problems Resulting from E10 Ethanol Alcohol Fuel Use: Ethanol will dissolve resins that create a black sludge thatcoats and travels through the engine, causing enginestalling and complications, including clogged fuel filters,carburetor . Many engine hoses of older engines are not resistant toalcohol. Higher alcohol extra release causes of rust, debris,sediment and gunk - and further clogging and damage toengine components and filters. 11. Production processThe basic steps forlarge scale production of ethanol are:1. Microbial fermentation2. Sugars distillation3. Dehydration4. Hydrolysis Enzymes are used toconvert starch into sugar. 12. Microbial fermentation:Ethanol is produced by microbial fermentation ofthe sugar. 1.Microbial fermentation will currently onlywork directly with sugars.2.Two major components of plants, starch and cellulose,are both made up of sugars,and can converted to sugars for fermentation. 13. Sugars distillation:1.Sugar (e.g. sugar cane) and starch (e.g. corn) portions can be economically converted.2.The cellulose part of a plantis broken down to sugarsand subsequent Distillation.3.For the ethanol to be usable as a fuel, the majority of the water must be removedMost of the water is removed by distillation 14. DehydrationThe ethanol is passed through an absorber containing a molecularsieve which traps the ethanol but lets the water pass through. Theresult is a nearly 100% anhydrous ethanol product. Three absorbersmay be used to enhance efficiency. 15. HydrolysisThe slurrytemperature israised to between 80 and 100 degrees centigrade to hydrolyze the starch into solution. 16. TOTAL capital requiredRs. 400 millionThe total capital requirement is an estimatebased on the set up ofEthanol plant withthe capacityof 30,000/- liters. 17. PKR 88.95/L (Unleaded Premium)PKR 112.65/L (Unleaded-Hi Octane)PKR 94.15/L (Diesel)N0. FUELCOUNTRYPRICE1 (Unleaded-PKR (Pakistan Rupees) 88.95/Lpremium)PATROL2.ETHANOL FUEL PKR (Pakistan Rupees) 80/L3.(Unleaded-HiPKR(Pakistan Rupees) 112.65/LOctane)PATROL4.DieselPKR(Pakistan Rupees) 94.15/L 18. ECONOMYPENETRATIONSKIMMINGPREMIUM 19. SALE FORCASTINGparticular1year 2year 3year 4year 5year1.sales 30000 3900000 3900000 3900000 39000003900000130 per litre2. subsidariy 1500000 1500000 1500000 1500000150000050 per litre3. cost per costumers 2400000 2400000 2400000 2400000240000080 per litre4. cost of good sold1500000 1500000 1500000 1500000150000050 per litre5. Gross profit 2400000 2400000 2400000 240000024000006. operating expense 300000 300000 300000300000 30000020 percent7.EBIT2100000 2100000 2100000 210000021000008. INTEREST 0 0 0 009. DEPRECIATION300000 300000 300000300000 30000010. Net income1800000 1800000 1800000 18000001800000 20. ETHANOL FUEL FASTERBALANCE SHEETSASSETS 2012---------------------------------------Current Assets:150000000 Cash and cash equivalents 50000000 Total current assets 200000000--------- Other assets50000000---------Total Assets250000000=========LIABILITIES AND STOCKHOLDERS EQUITY------------------------------Current Liabilities:Total current liabilities50000000--------- Total Liabilities50000000--------- Additionalpaid-in capital50000000---------Ethanol, Inc. StockholdersEquity (Deficit) 75000000---------Total StockholdersEquity75000000 ---------Total Liabilities and Stockholders Equity 250000000========= 21. Market plan MARKET SHARE TARGET MARKET MARKETING STRATEGY MARKETING MIX SWOT ANALYSIS DISTRIBUTION CHANNELS 22. Market research:Ethanol Research notesEthanol used in transportation applications reduces oil dependence and results in lower emissions.1. Reducing the price gap between utilization of ethanol and cheap imported gasoline2.Hydrated ethanol can be used in a fuel cell system with no loss in efficiency compared with 100 % high-grade ethanol 23. PRESENT STAGE : Question Marks high growth rate but lowmarket share Worlds ethanol production will pass 20 Bln gallons in2012. Ethanol production is expected to grow in 2008 - 2012with CAGR about 5s U.S. and Brazil are leading theworld in production of ethanol. Emergence of new ethanol producers in Asia and LatinAmerica. 24. AFTER FIVE YEARS :Stars high growth rate and high market shareFactors driving ethanol market: High oil prices.Less quantity of oil National energy security considerations. Ethanol tax incentives. Improved technology - lower costs of ethanolproduction. Climate change concerns. 25. INITIATIVE 26. PRODUCT :E-10 PRICE:Ethanol-mixed fuel will be sold at Rs2.4 per liter less than regularpetrol PLACE:It will soon reach six major cities Islamabad, Lahore, Karachi, Faisalabad, Quetta, Peshawar and Sukkur. PROMOTION :20 pumps would start selling E-10 by August 14 this year. Ethanol-mixed petrol was being used in more than 16 countries .10% ofethanol to save more money. 27. Strength :1. Ethanol for use in automobiles in order to reduce oil imports.2. Pakistan is initiating the use of ethanol as an automotive fuelOpportunities:1. 5% to 10% ethanol in gasoline in Pakistan to improve the environment and the security of energy supplies2. In 2004, around 42 billion liters of ethanol were produced in the world, most of it being for use in cars. 28. Weakness:1. Over 10% ethanol will cause damage to most conventional engines.2. The percentage of ethanol contained in gas at pumps is not closely monitored. Test Gas Ethanol Level Threats1. E10 ethanol gasoline has caused engine problems & damage, especially to older vehicles and marine outboard boat motors.2. Many types of engines are not designed for the use of alcohol fuel.3. Price of CNG, LPG 29. MARKETPENETRATIONPRODUCT DEVELOPMENT STRATEGYMARKETSTRATEGY STRATEGYMARKETDEVELOPMENTDIVERSIFICATION STRATEGY 30. SITUATION ANALYSIS positive returnPROFIT on investment increasePEOPLE quality of life PLANET ecosystemrestoration 31. 45 32. ETHANOL FUEL FASTER List of consumers : Pak Suzuki Motor Company Ltd. Cars, L.C.Vs ,Pick-ups and Vans. Indus Motor Company Ltd. Cars and L.C.Vs. Honda Atlas Cars (Pakistan) Ltd. Cars and Bikes. 33. Sind Engineering Ltd. Cars, Trucks , Bikes and Pick-ups. Sigma Motors (Pvt) Ltd. L.C.Vs Hinopak Motors Ltd. Trucks and Buses. Ghandhara Nissan Ltd. Trucks, Buses and Cars. Master Motor Corporation Ltd. Trucks , Buses and Pick-ups.