Thinking About Sustainability at Godavari Biorefineries 2013/sym… · Thinking About...
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Thinking About Sustainability at Godavari Biorefineries Samir Somaiya December 2013 Private & Confidential
Transcript of Thinking About Sustainability at Godavari Biorefineries 2013/sym… · Thinking About...
Thinking About Sustainability at
Godavari Biorefineries
Samir Somaiya
December 2013
Private & Confidential
An Integrated Approach to Innovation- Social, Financial and Environmental
16% of India GDP is from Agriculture
>50% of population dependent on farming
10 million farmers (50 million people) connected to sugarcane farming
Growth has to be inclusive
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SustainabilityMindset and Innovation as Key
Drivers
Environmental
Social
Financial
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Godavari Biorefineries
What are we doing?
What are we doing different
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The World Around Us
The Land Around Us
The Society Around Us
The Farmers Around Us
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The Land Around Us
Generate Geo TagAttach Soil Sample
to the Geo TagLab Analysis
Feed the Lab Results with the
Geo Tag
GBL Cloud
GBL GIS DB
Soil Grid Plan
Interpolation
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2 3 4
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Exports
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GIS, Satellite, and Soil Health
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The Land Around Us
THE SOCIETY AROUND US - EDUCATION8 SCHOOLS, 6 IN RURAL INDIA
The Society Around Us
Integrating farm experiments into education
Integrating into school curriculum to educate, innovate, and propagate
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Godavari Biorefineries Context
2011-12, we processed 2.1 million tons of cane
15,000 farmers - an average of 140 tons cane/farmer (33% of our farmers supplied less than 50 tons)
Average landholding 3.5 acres (40 tons/acre)
Cane price = Rs. 2000/ton: So about Revenue about Rs. 280,000 per ‘average’ farmer
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Single crop vs Intercropping: Targets
Crop Unit of weight Yield/acre Price/unitrevenue/acr
ecost/acre
Cane tons 50 2000 100000 30000
Soya Quintals 8 3500 28000 10000
TurmericQuintals 15 5500 82500 60000
Total for 1 acre 210500 100000
Total for 3.5 acres 736750 350000
Net Earnings 386750
Single crop 1 acre 40 2000 80000 30000
3.5 acres 280000 105000
Net Earnings 175000
Dramatic Changes in revenue, with better effect on soil quality !!Reduce Costs, and Improve Soil Quality
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Cane Composition
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Traditional Model: Sugar from Cane
Milling
Boilers
Clarification
Evaporation
Cane
Juice
Bagasse Clear Juice
Syrup
Pan Boiling
Centrifuges Sugar
MudFarm
Molasses
Molasses and bagasse caused disposal problems
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Traditional Model:Basis 1 ton cane
Units Quantity/ton Price/unit Value
Sugar kg 115 26 2990
Molasses(50% sugar)
kg 40 5 200
Surplus Bagasse(50% moisture)
kg 0 1 0
Mud kg 20 0 0
Total 3190
Earlier, when we started, sugar yield per ton was 93 kg, now it is 115 kg. Before the WTO outlawed subsidized EU sugar exports, sugar prices were Rs. 12/kg, leading to a revenue from 1 ton cane of
about Rs. 1400
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Current Model - Sugar, Ethanol, Electricity from Cane
Milling Clarification
Evaporation
Cane
Juice
Clear Juice
Syrup
Pan Boiling
Centrifuges Sugar
Mud
Fermentation Ethanol
Molasses
Composting Biodigestion Biogas
Vinasse
Farm
Bagasse
HP Boilers
Power
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Current Model:Basis 1 ton cane
Units Quantity/ton Price/unit Value
Sugar kg 115 26 2990
Ethanol liters 10 38 380
Surplus Power kwhr 80 5 400
Mud kg 20 0 0
Total 3770
Lot of capital chasing a revenue difference of Rs. 600 per ton of cane crushed
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Godavari Biorefineries Model - Work in Progress
Milling Clarification
Evaporation
Cane
Juice
Clear Juice
Syrup
Pan Boiling
Centrifuges Sugar
Mud
Fermentation Ethanol
Molasses
Composting Biodigestion Biogas
VinasseCompostFarm
Bagasse
HP Boilers
Power
Celluloses
Organic Acids
Sorghum
Beet,Sweet Sorghum.
Energy Cane
Chemicals
Chemicals
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Our Target
Raise Revenue per ton to over Rs. 15000 per ton of cane crushed
Growth Plans
All financial years end in March
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2012
2017
Growth PlansAltering product mix
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Godavari StrategyAdd Value
Diversify across markets
Diversify across renewable feedstock (Beet, Cane, Sorghum)
Diversify manufacturing locations
Invest in/work with startups
Innovate in feedstocks, processes, and relationships
Work with farmers
Work with and for the community
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Thank You
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