2.  PRODUCTION AND
INTRODUCTON TECHNOLOGY
PLAN
MARKETING PLAN FINANCIAL PLAN

3. RE-INTRODUCED:
1. E-10 has been inaugurated in Pakistan by Prime
Minister’s 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.

5.  Energy in Different Fuels
Can Have Very Different Qualities
Fossil Energy Ratio (FER) =
energy in fuel/fossil energy input
2.0
1.5
1.0
1.36
0.5 0.98
0.81
0.45
0.0
Cell. EtOH Corn EtOH Coal Gasoline Electricity

6. 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 is
also used in thermometers as a solvent and as a fuel.

8. 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.

9.  Pakistan today has 4 largest coal reserves Pakistan can greatly
reduce its petrol consumption immediately by
1)Converting the Power Plants run on furnace oil into Indigenous
coal based power plants.
2)Oil can be blended by 10 % ethanol immediately there by
bringing down the petrol
consumption by
atleast 30-40m ilion
barrels per year

10.  Chemistry
Structure of ethanol molecule.
All bonds are single bonds
Glucose (a simple sugar) is created in the plant by
photosynthesis
 6 CO2 + 6 H2O + light → C6H12O6 + 6 O2
During ethanol fermentation glucose is decomposed into
ethanol and carbon dioxide.
 C6H12O6 → 2 CH3CH2OH+ 2 CO2 + heat

11. During combustion ethanol reacts with oxygen to produce
carbon dioxide, waterand heat:
 CH3CH2OH + 3 O2 → 2 CO2 + 3 H2O + heat
Ethanol may also be produced industrially from ethene
(ethylene). Addition of water to the double bond converts ethene
to ethanol:
C2H4 + H2O → CH3CH2OH
This is done in the presence of an acid which catalyzes the
reaction, but is not consumed. The ethene is produced from
petroleum by steam cracking

12.  It is an alternative fuel made from plants that contain
basic sugars.
 The sugars are fermented and distilled into carbon
dioxide and alcohol.
 Ethanol is also a renewable fuel source because it
comes from corn, barley and wheat stalks, which can be
harvested and then replanted.

13. Engine Problems Resulting from E10 Ethanol
Alcohol Fuel Use:
 Ethanol will dissolve resins that create a black sludge that
coats and travels through the engine, causing engine
stalling and complications, including clogged fuel filters,
carburetor .
 Many engine hoses of older engines are not resistant to
alcohol.
 Higher alcohol extra release causes of rust, debris,
sediment and gunk - and further clogging and damage to
engine components and filters.

16.  Production process
The basic steps for
large scale
production of ethanol are:
1. Microbial fermentation
2. Sugars distillation
3. Dehydration
4. Hydrolysis
 Enzymes are used to
convert starch into sugar.

17.  Microbial fermentation:
Ethanol is produced by microbial fermentation of
the sugar.
1.Microbial fermentation will currently only
work 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.

18. Sugars distillation:
1.Sugar (e.g. sugar cane) and starch (e.g. corn) portions can
be economically converted.
2.The cellulose part of a plant
is broken down to sugars
and subsequent Distillation.
3.For the ethanol to be usable
as a fuel, the majority of
the water must be removed
Most of the water is removed by
distillation

19. Dehydration
The ethanol is passed through an absorber containing a molecular
sieve which traps the ethanol but lets the water pass through. The
result is a nearly 100% anhydrous ethanol product. Three absorbers
may be used to enhance efficiency.

20. Hydrolysis
The slurry
temperature is
raised to between
80 and 100 degrees
centigrade to
hydrolyze the
starch into solution.

23.  TOTAL capital required
Rs. 400 million
The total capital requirement is an estimate
based on the set up of
Ethanol plant with
the capacity
of 30,000/- liters.

24. PKR 88.95/L (Unleaded Premium)
PKR 112.65/L (Unleaded-Hi Octane)
PKR 94.15/L (Diesel)
N0. FUEL COUNTRY PRICE
1 (Unleaded- PKR (Pakistan Rupees) 88.95/L
premium)
PATROL
2. ETHANOL FUEL PKR (Pakistan Rupees) 80/L
3. (Unleaded-Hi PKR(Pakistan Rupees) 112.65/L
Octane)
PATROL
4. Diesel PKR(Pakistan Rupees) 94.15/L

25. ECONOMY PENETRATION
SKIMMING PREMIUM

26. SALE FORCASTING
particular 1year 2year 3year 4year 5year
1.sales 30000 3900000 3900000 3900000 3900000 3900000
130 per litre
2. subsidariy 1500000 1500000 1500000 1500000 1500000
50 per litre
3. cost per costumers 2400000 2400000 2400000 2400000 2400000
80 per litre
4. cost of good sold 1500000 1500000 1500000 1500000 1500000
50 per litre
5. Gross profit 2400000 2400000 2400000 2400000 2400000
6. operating expense 300000 300000 300000 300000 300000
20 percent
7.EBIT 2100000 2100000 2100000 2100000 2100000
8. INTEREST 0 0 0 0 0
9. DEPRECIATION 300000 300000 300000 300000 300000
10. Net income 1800000 1800000 1800000 1800000 1800000

27. ETHANOL FUEL FASTER
BALANCE SHEETS
ASSETS 2012
------------------------------ ---------
Current Assets: 150000000
Cash and cash equivalents 50000000
Total current assets 200000000
---------
Other assets 50000000
---------
Total Assets 250000000
=========
LIABILITIES AND STOCKHOLDERS'
EQUITY
------------------------------
Current Liabilities:
Total current liabilities 50000000
---------
Total Liabilities 50000000
---------
Additional paid-in capital 50000000
---------
Ethanol, Inc.
Stockholders' Equity
(Deficit) 75000000
---------
Total Stockholders' Equity 75000000
---------
Total Liabilities and
Stockholders' Equity 250000000
=========

29. Market plan
 MARKET SHARE
 TARGET MARKET
 MARKETING STRATEGY
 MARKETING MIX
 SWOT ANALYSIS
 DISTRIBUTION
CHANNELS

30. Market research:
Ethanol Research notes
Ethanol used in transportation applications reduces oil
dependence and results in lower emissions.
1. Reducing the price gap between utilization of ethanol
and cheap imported gasoline
2.Hydrated ethanol can be used in a fuel cell system with
no loss in efficiency compared with 100 % high-grade
ethanol

32. PRESENT STAGE :
 Question Marks – high growth rate but low
market share
 World’s ethanol production will pass 20 Bln gallons in
2012.
 Ethanol production is expected to grow in 2008 - 2012
with CAGR about 5s U.S. and Brazil are leading the
world in production of ethanol.
 Emergence of new ethanol producers in Asia and Latin
America.

34. AFTER FIVE YEARS :
Stars – high growth rate and high market share
Factors driving ethanol market:
 High oil prices.Less quantity of oil
 National energy security considerations.
 Ethanol tax incentives.
 Improved technology - lower costs of ethanol
production.
 Climate change concerns.

37. INITIATIVE

39.  PRODUCT :
E-10
 PRICE:
Ethanol-mixed fuel will be sold at Rs2.4 per liter less than regular
petrol
 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% of
ethanol to save more money.

41.  Strength :
1. Ethanol for use in automobiles in order to reduce oil
imports.
2. Pakistan is initiating the use of ethanol as an
automotive fuel
Opportunities:
1. 5% to 10% ethanol in gasoline in Pakistan to improve
the environment and the security of energy supplies
2. In 2004, around 42 billion liters of ethanol were
produced in the world, most of it being for use in cars.

42.  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
 Threats
1. 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

43. MARKET
PENETRATION
PRODUCT DEVELOPMENT
STRATEGY
MARKET STRATEGY
STRATEGY
MARKET
DEVELOPMENT DIVERSIFICATION
STRATEGY

44. SITUATION ANALYSIS
positive return
PROFIT on investment
increase
PEOPLE quality of life
PLANET ecosystem
restoration

45. 45

48. 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.

49.  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.