Green Energy (Pvt.

) Limited
Business Summary
The venture is to establish a bio-gas based power plant, the first of its kind in Bangladesh that
will contribute to the offsetting of the scarcity of electricity in Sylhet region and subsequently the
whole Bangladesh. As the biggest hindrance of producing power (electricity) is supply of natural
gas to private sector, we will use bio-gas the first time of its kind in Bangladesh to produce
power. Most vitally, we will focus on removing the pollution caused by odorous wastages
through using different kinds of wastages as raw material for producing bio-gas.
More importantly, our by-product, fertilizer, will also have tremendous demand in the country as
a whole. We will sell the power directly to the government and by-product-fertilizer- to the ACI
FORMULATION and SEA FERTILIZER - two largest fertilizer companies in Bangladesh. We
will locate our business plant at Chandighor, far away from Sylhet metropolitan city so that the
emission of plant does not hamper the city dwellers. Moreover the location will be convenient to
collect our raw materials from different locations as Fenchugonj, Sunamganj, Jointa and so on.
Our main product is bio-gas generated electricity and we also will have fertilizer as a by-product.
We will sell the electricity directly to the government and by-product-fertilizer- to the ACI
FORMULATION and SEA FERTILIZER. In fact, there is not any significant competition for
selling the products that will be produced.
Vision
Being a catalyst, transform our country into a developed one.
Mission
To contribute significantly to the removal of massive crisis of electricity
To reduce the pollution caused by wastages in the Sylhet city corporation
To supply environment friendly fertilizer
To ensure rapid growth in our business
Performing sincere Corporate Social Responsibility(CSR) and maintaining business
ethics & values
1

 To play a vital role in the industrial development of Sylhet region leading to huge
employment opportunities.

Goals/objectives
1. To achieve sales in the first year of taka 70crore
2. To pay off debts within 3-4 years
3. To add another 25MW power plant within four years
4. To establish other two SBU (Strategic Business Units)- purified fertilizer and bio-gas
based cylinder within four years of establishment.

Detailed Plan:
Organization and Ownership Pattern:
The venture will be a private limited company. There will be three sponsor shareholders and 47
common stock holders. The ownership will be divided into one crore shares. Three share holders
will own ten lakh shares each and the rest 70 lakh shares will be owned by the 47 Non Resident
Sylheties(NRS).

Market analysis
Undoubtedly, there is ever surplus demand for electricity in Bangladesh. So, it is quite certain
that our products will be entirely sold to market without any difficulty. In fact, we will sell the
electricity directly to the PDB (Power Development Board). We will locate our business plant at
Chandighor that is free from thickness of population. Moreover, the market is growing
significantly. More importantly, the development activities including business activities will
demand electricity significantly. As the product has a perfectly inelastic demand, this will create
an edge for business. On the other hand, using bio-gas as raw materials for producing electricity,
our cost of production will necessarily be less than other forms of power generation. We have
conducted our market research through conducting a significant no. of interviews of related
parties involving Grameen Shakti, PDB, Summit power, Tuker bazaar power prima,
2

Biotechnologists of SUST, City corporation executive, civil engineers and above all with an
international consultant of India .
Competition
As the demand for electricity is higher than that of supply, so the competition is yet to emerge.
More vitally, we wont have any competitive rivalry. So our promotional activities will be less,
which will reduce the operation and advertising costs. Moreover, using bio-gas to generate
electricity will be the first of its kind in Bangladesh, that will be very much cost effective and
environment friendly. So this will give us clear competitive advantage.
Product
Our main product is bio-gas generated electricity and by-product-fertilizer. We will sell
electricity directly to the government and by-product-fertilizer entirely to the ACI
FORMULATION and SEA FERTILIZER. As there is lack of supply of fertilizer, we can surely
sell this either to the government or private individuals. So it can be said that our prime product,
power, will accelerate industrial development and by-product-fertilizer will be quite catalytic to
the agricultural development.
Marketing strategy
Our marketing strategy will be very simple. As we will sell electricity directly to the government
and by-products-fertilizer-entirely to the ACI FORMULATION and SEA FERTILIZER, so it
will not badly require significant promotional activities. We will concentrate to develop
favorable public relations and publicity, but the necessity of advertising and sales promotion will
be very minimal. So the total manufacturing expenditure will also reduce overall expenditure of
the business.

Supply Chain of Green Energy Pvt. Ltd.

Selling of power to
PDB (Power
Development Board)

Wastage of city
corporation, cow
dung and poultry
litter from Sylhet
and Sunamgonj

Conversion of
raw form into
bio-gas

Conversion of biogas into power and

bio slurry

Selling of fertilizer to
ACI formulation and
sea fertilizer

Figure of Supply Chain

Production Process:
Bio-gas will be produced from wastages by the conventional ways. There will be four tanks,
where first one will be used to separate organic wastages from non-organic ones. Second one
will mix cow dung, poultry litters and the organic wastages (municipal wastages) with water. In
the third tank, the gas will be produced and subsequently will be transmitted to power plant. On
the other part of the tank, there will be a layout to transfer bio-slurry into another tank.
In the power generation process we will use combination of gas and steam turbine. The gas
turbine will be operated by the exhausted heat produced from two gas turbines. Thereby, we can
increase the efficiency level from 30% to 68%.

Corporate Social Responsibility (CSR):

We will do the followings to perform our CSR1. We will reduce the pollution of Sylhet City Corporation through using its massive
wastages.
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2. The raw material suppliers will be given the privilege of microcredit to expand their
ventures
3. Awareness among people will be enhanced so that they throw the wastages in the
right place.
4. We will setup well-constructed dustbin in every corner of the city.
Future Expansion:
1. Add another 25MW power plant within four years
2. Establish other two SBU (Strategic Business Units) - purified fertilizer and bio-gas based
cylinder within four years of establishment.

SWOT Analysis

Strengths

Weakness

1. Low cost of production

1. Less liquidity

2. Efficient

2. First of its kinds

&

Educated

Entrepreneurs

3. Lack of skilled professionals

3. Suitable Locations

4. Less liquidity

4. Low cost of production

5. First of its kinds

5. Efficient

6. Lack of skilled professionals

&

Educated

Entrepreneurs
6. Suitable Locations

Opportunities

Threats

1. The application of PPP concept-

1. Natural Calamity

(Public Private Partnership)

2. Government Policy

2. Selling bio-gas based cylinder

Break-Even Analysis:
Break-Even Quantity =
=
=
=

Here,
Variable cost per unit =
=
= 0.4
Revenue

TC

Price/Cost (in cr.)

173

143

FC

0
75

Units (in cr.)

Figure: Break-Even Analysis

Capital Budgeting:
Net Present Value (NPV):
C0

NPV=
Here,

CFt = Cash Flow at the period of ten years (projected life)

C0= Cash outflow
k= Cost of Capital= 14% (0.67*15+0.33*13=14%)
NPV =
+

- 1780000000

= TK. 2,23,98,59,000 (Note: 7)

This NPV is showing a very favorable result. This is also indicating the very much viability of the project.
Payback Period:
Payback Period =
= 4.7657 years (Note: 8)

This indicates that we will be able to recover our investment within 5 years. That definitely demonstrates
a acceptable payback period.

Internal Rate of Return:

Internal Rate of Return = 16% +
= 16.39% (Note: 9)
As our cost of capital is 14% and IRR is 16.39% so the venture is very much viable.

Projected Financial Summary: Four years of Green Energy (pvt.) Ltd

Items
Total Revenue
Cost of Goods
Sold
Gross Profit
Operating
Expenses
EBIT
Interest
Net Profit
Dividend
Current Assets
Fixed Assets
Total Liabilities
Share Holders
Equity
Retained Earnings
Net Cash Flow
Current Ratio
Quick Ratio
Gross Profit
Margin Ratio
Net Profit Current
Ratio
EPS

1st year
(Taka)
704750000
76940000

2nd year
(Taka)
680000000
80900000

3rd year
(Taka)
708000000
82400000

4th year
(Taka)
1057125000
90750000

627810000
36780000

599100000
36580000

625600000
37380000

941715000
52320000

591030000
65000000
526030000
150000000
70000000
14300000
500000000
1000000000

562520000
65000000
497520000
300000000
576030000
19200000
52000000
1000000000

588220000
65000000
523220000
300000000
769350000
18400000
636350000
1000000000

889395000
65000000
8830395000
300000000
1165000
27264000
901560000
100000000

0
426030000
1.5:1
1.1:1
89%

373830000
188550000
1.4:1
1.2:1
88%

500000000
176770000
1.55:1
1.15:1
88.36%

1165000
141165000
1.75:1
1.1:1
89%

74.6%

73.16%

73.9%

83%

52.6

49.75

52.32

88.3