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Message Icon Topic: Asian Electronics:Plastic to Energy! Post Reply Post New Topic
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ndzapak
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Quote ndzapak Replybullet Posted: 23/Jul/2007 at 1:13am

Another article from DNA Money, this one was

in Oct,2005

 

Now in Nagpur: Fuel from plastic waste

Jaideep Hardikar

Monday, October 24, 2005  01:01 IST

NAGPUR: Fuel from plastic waste is a reality — a commercial reality.  The Unique Waste Plastic Management and Research Company Pvt Ltd of Dr Alka and Umesh Zadgaonkar, is producing 5,000 litres of fuel from plastic trash and running a profitable business of selling it to industrial units in Butibori, outside the city.

Away from the public gaze and doubting Thomases after their public claims in 2003, the Zadgaonkars have been producing fuel from plastic waste since March this year. If they have not made a noise about it, it’s because they are drowning in business enquiries and expansion plans. By December, they want to expand capacity five-fold to 25 MT  of plastic waste (25,000 litres daily) — and ultimately grow it to 450 MT.

The couple set up the plant at the industrial estate here in 2004 with a Rs5.5 crore loan from the SBI. Industrial units in the area are running their captive power plants on this fuel and are happy with its pricing and performance. The Zadgaonkars’ fuel (it’s not yet been given a name) is priced at Rs30 per litre, Rs8 less than diesel.

Though it is not yet vehicle-ready, the fuel scores over petrol/diesel because it ignites  faster. Besides, several test reports by government and non-government institutions say it has smaller sulphur content and low reaction temperature. Above all, the Maharashtra Pollution Control Board has found that the conversion of plastic waste into fuel is non-polluting.

Engine output is nearly as much as produced by other fuels. A test drive on a Kinetic Honda gave a mileage of 44 km/ltr on plastic fuel as compared to 44.4km/ltr on petrol. It accelerated from 0 to 60 km in 18 secs against 22.5 secs on petrol.

“We can’t imagine a day without plastics. So why not convert it into something more useful?” asks Alka. And for the Maharashtra government, which has announced a near-impossible-to-implement ban on plastic, here’s a good reason to rethink the ban.  

Facts

*Zadgaonkars’ plant went into commercial production in March 2005

*Producing 5000 litres fuel from 5MT of waste daily

*Fuel has not yet been given a brand name

*Presently can be used for seven functions such as running gensets

*Can also run vehicles after more refining. Has better combustibility than petrol

*Bike did 0-60 in 18 secs on this fuel against 22 secs on petrol

The journey from lab to plant

2000: Dr Alka Zadgaonkar, an applied chemistry professor from Nagpur, invents a catalyst that can convert plastic waste into fuel in her lab.

2001: With husband Umesh, Alka files for national and international patents.

2003: Government of India invites Alka to demonstrate her invention in New Delhi. She does so successfully. Ties up with Indian Oil Corporation for further testing and fine tuning the product. But fresh from the Ramar Pillai con job (where he fooled the nation with his claims of extracting petrol from water), there is heavy scepticism about their claim.

2004: Zadgaonkars decide to drop out of limelight. Set up a plant for commercial production at Butibori industrial estate outside Nagpur with a Rs5.5 crore loan from SBI. Go about their job without attracting much attention from media or scientific tribe.

2005: By early March they start producing 5000 litres of fuel. Are selling it to about 30 units in the MIDC area for running captive power generators. The most critical stage of all inventions—commercial viability—is established.
Even SBI in its project review report praises the couple for running a profitable business. Now plans are underway to up production five times by December.

State govt takes note. Signs up with the couple to develop the market for the fuel through the Maharashtra Energy Development Agency. MEDA is flooded with enquiries from private energy firms within and outside country.

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Mr. V
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Quote Mr. V Replybullet Posted: 23/Jul/2007 at 1:21am
Originally posted by deveshkayal

Must read the great story of Alka Zadgoankar
 
 
Very inspiring read.
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Quote omshivaya Replybullet Posted: 23/Jul/2007 at 1:46am

It seems that Asian Electroncs has acquired the patented-waste plastic to fuel technology (uses the Alka Zadgaonkar process) in December 2006 going by this artice in DNA Money.

It does not mention the cost, I am surprised why would the inventor sell if the technologyhas so much potential. Are there any royalty payments ?

_________________________________________________________

Maybe Alka jee is getting an equity stake in the company as payment, rather than cash!! Just a guess!
 
Here are some other things I found out from the DRHP of AEL(apart from the waste to energy part. It relates to the current core business of AEL):
 

Global Lighting Industry

According to AEL, the global lighting fixtures industry is currently valued at approximately $ 70 billion and is expected to grow to about $ 90 billion in 2010.

Indian Lighting Industry

The Indian lighting industry has been growing rapidly at about 20% p.a. for the last 2-3 years and is currently valued at Rs. 45 billion. The industry can be classified into the following segments:

According to the Company, as a result of a booming economy and rapidly increasing industrialization and commercialization, the lighting industry in India could grow handsomely at a CAGR of around 12% and touch US$ 6 billion in 2020. Also, it believes that the value of ESCO contracts over the next 15 years could be around US$ 4.5 billion.

India currently has one of the lowest electricity penetration rates across the globe. Increasing demand due to rising population, rapidly growing economy and increasing levels of industrialization and commercialization along with lack of adequate investments in generation and distribution capacity have resulted in a yawning gap between demand and supply for power. As per the latest available economic data for the quarter April to June 2006, the average energy shortage was 9.3% and the peak shortage was 12.8%.

Further, transmission and distribution losses in India are exceptionally high at over 23% as compared to several developed countries where such losses are in the range of 10% to 15%. As a result of these inefficiencies, the cost of power to the Indian consumer, residential and commercial, is amongst the highest across the world.

The industrial sector in India is a major energy user, accounting for about 48% of commercial energy consumption. This sector has become increasingly energy-intensive over time, which is partly due to investments made in basic and energy intensive industries due to the emphasis laid in the past development plans on achieving self-reliance.

There are wide variations in energy consumption among different units within the same industry using comparable technology. The energy savings potential in this sector is estimated to be 25% making it the sector having the maximum potential in the economy. Despite the large potential for energy efficiency investments having financially attractive returns, only a small fraction is actually being tapped. There is, thus, a need for concerted efforts, whether voluntary or otherwise, on energy, efficiency in the industrial sector.



Edited by omshivaya - 23/Jul/2007 at 2:04am
The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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Quote omshivaya Replybullet Posted: 23/Jul/2007 at 2:43am
Basant sir,
 
After going thru the whole thread from start to last & from whatever information source you have, what do you feel about this company: Asian Electronics. Your wisdom and experience will help a lot in this regard. Please take your time answering if you need to!!!
The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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Quote omshivaya Replybullet Posted: 23/Jul/2007 at 3:17am
Originally posted by us121

my doubt is: how good is their execution capability/past-track record of execution. Can we take take their word for it:

this is from my portfolio check thread: http://www.theequitydesk.com/forum/forum_posts.asp?TID=894&KW=us121&PN=4 

 
Thanks for that US121 jee, appreciate it!!
The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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Quote omshivaya Replybullet Posted: 23/Jul/2007 at 10:20am
Sab chup-chap ho gaye hai Bhai. Wah, ye to kamaal ho gaya!
The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it
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Quote basant Replybullet Posted: 23/Jul/2007 at 10:24am
Seems very impressive and promising to me from what I have heard - Courtsey Devesh.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Quote omshivaya Replybullet Posted: 23/Jul/2007 at 10:27am
Not interested in taking a stake Basant sir? I ask since the potential is really huge and here we have a company, which deviates from our usual TED XI well. Can we be the different frogs?
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