Project Report for Biomass Briquetting

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Project report for biomass briquetting, made for my client, includes process details and financial calculations.

Transcript of Project Report for Biomass Briquetting





    -: Prepared by:-


    Chartered Accountants

    127/2, Rockel Lane,

    Vakharbhag, Sangli

    Tel: (0233) 2623625, 2622536

  • Project Report of M/s. Arya Bio Mass, prepared by CA Tejpal Chandrakant Shah


    1. Name of the Project


    2. Address of unit

    : Gat No. 526, Shivajinagar, Borgaon,

    Tal. Walwa, Dist. Sangli

    3. Constitution

    : Proprietorship

    4. Nature of Activity

    : Manufacturing of Biomass Briquettes



    : Mrs. Swati Vikas Patil

    6. Cost of Project

    : 45.00 Lacs

    7. Means of Finance : Capital 33.00 Lacs

    Bank Loan 12.00 Lacs

    Total 45.00 Lacs

  • Project Report of M/s. Arya Bio Mass, prepared by CA Tejpal Chandrakant Shah




    M/S. ARYA BIO MASS Introduction

    Biomass briquettes are a biofuel substitute to coal and charcoal. Briquettes are mostly

    used in the developing world, where cooking fuels are not as easily available. There has been a

    move to the use of briquettes in the developed world, where they are used to heat industrial

    boilers in order to produce electricity from steam. The briquettes are cofired with coal in order

    to create the heat supplied to the boiler when the higher heat is needed.

    This project is a project of manufacturing of Briquettes from any agro waste, bio mass and

    bio waste. In this project, we intend to import and install a new technology from abroad, with

    the help of which, we will be able to produce smoke less coal briquettes made from all types of

    agro waste and biomass waste which currently are not used in conventional briquettes.

    Introduction of the promoters:

    This project is proposed by Mrs. Swati Vikas Patil. They have formed a private limited

    company in the name as M/s. Arya Bio Mass for this project and both shall look after the

    business. They have studied well about the market and now decided to start own unit.

  • Project Report of M/s. Arya Bio Mass, prepared by CA Tejpal Chandrakant Shah

    Unit Registration Details:

    This project is proposed as a proprietorship concern. Thus there is no process regarding

    formation. This project shall be a small scale unit as per GR of Govt. of Maharashtra and MSME

    Act. Registration under MSME Act as a SSI unit given by DIC is in process.

    Technical Aspects & Production:

    Biomass briquettes, mostly made of green waste and other organic materials, are

    commonly used for electricity generation, heat, and cooking fuel. These compressed compounds

    contain various organic materials, including rice husk, bagasse, ground nut shells, municipal solid

    waste, and agricultural waste. The composition of the briquettes varies by area due to the

    availability of raw materials. The raw materials are gathered and compressed into briquette in

    order to burn longer and make transportation of the goods easier. These briquettes are very

    different from charcoal because they do not have large concentrations of carbonaceous

    substances and added materials. Compared to fossil fuels, the briquettes produce low net total

    greenhouse gas emissions because the materials used are already a part of the carbon cycle and

    nothing new is introduced in the cycle.

    One of the most common variables of the biomass briquette production process is the

    way the biomass is dried out. Manufacturers can use torrefaction, carbonization, or varying

    degrees of pyrolysis. Researchers concluded that torrefaction and carbonization are the most

    efficient forms of drying out biomass, but the use of the briquette determines which method

    should be used. Basically, this is a physical process of percussion to be carried out. The process is

    a continuous type having a small pressure Ram which continuously ramming the raw material

    through the die, resulting into compressed briquettes.

    Here, it is intended to introduce a new technology which is prevailing in the world market,

    but it is not yet used in India. It is a technically improved technology giving smokeless coal at

    lower cost and better results out of the bio waste. In India, the major used material for briquettes

    is Baggasse while, with this machine agro waste such as dried plants, leaf waste of sugar cane

    and other crops can be used for briquettes.

  • Project Report of M/s. Arya Bio Mass, prepared by CA Tejpal Chandrakant Shah


    The machine is of robust design and is very compact in nature. It requires around 70 sq.

    ft. of space. But, the remaining matters such as the raw material, and the finished goods requires

    huge space. Thus for a project of 1000 Kg / Hr., around 2500 Sq. Ft. building shall be required,

    estimated cost of which shall be around 10 Lacs. In this building, all the machinery i.e.

    briquetting press and the chaff cutter shall be housed along with the materials stock. Building

    required for this project shall include a small part for machinery and mostly open shed to store

    the raw material.


    Production capacity 1000 Kg. / Hr.

    No. of working Day 300 days

    No. of Shift Single/ Two

    The project can be run throughout the year. We can stock the raw material and utilize it

    later depending on the availability of the building and storage which actually gives us higher profit

    due to price rise in shortage period i.e. rainy season.


    In this project extrusion process is to be carried out, which requires only the single

    machine of extrusion. But, apart from that, for preparation of raw material, we need chaff cutter.

    The list of total machinery is as follows: -

    1. Briquetting Press

    2. Chaff Cutter

    3. Weigh Scale

    4. Packing Machine

  • Project Report of M/s. Arya Bio Mass, prepared by CA Tejpal Chandrakant Shah

    Manufacturing Process & Effluent:

    In this unit, there is a single process of percussion is to be carried out. Apart from that, as

    a background process or preparatory process, the chaff cutter is used so that to prepare raw

    material in the required smaller input form.

    All the processes are physical processes and do not involve water and other chemicals.

    Thus, there is no effluent generated. There is no waste generated as all the items used are bound

    together and converted into the briquettes. The waste and the remains can be gathered and be

    put back in the manufacturing process to be utilized.

    Process Flow Chart:

    Or a simpler process can be shown as follows: -

  • Project Report of M/s. Arya Bio Mass, prepared by CA Tejpal Chandrakant Shah

    Marketing and Demand:

    There are no such projects around as we are bringing some new technology from abroad.

    The technology which is used in India, is a basic technology of mechanical pressing which uses a

    huge rammer with heavy power, but this new technology consist of percussion process, which

    enables to produce smokeless coal briquettes with half power consumption and smaller area.

    Thus, we can see an immense demand for our product. We intend to target the textile

    industry for marketing situated in the nearby town of Ichalkaranji, where the daily demand of

    the firewood is more than 200 truckloads. Thus, we can see that, the supply against the demand

    is less than 1 %, which denotes, that we may have to go into huge expansion sooner to capture

    1% of market share.

    Means of Finance:

    This project shall be financed in following manner:

    In Lacs

    A. Capital contribution 12.00

    B. Bank Term Loan 33.00

    Total 90.00

    Project cost Details:

    In Lacs

    A. Land and Development 05.00

    B. Building 10.00

    C. Plant & Machinery 17.00

    D. Electrification & Installation 08.00

    E. Tractor & Impliments 05.00

    Total 45.00

    Implementation Schedule:

    This project will be implemented in following schedule:

  • Project Report of M/s. Arya Bio Mass, prepared by CA Tejpal Chandrakant Shah

    Sr. No. Activity Period

    1. Acquisition and development of land Own

    2. Civil work and building construction 5 months

    3. Procurement of machinery and equipment 1-2 months

    4. Arrangement for power supply 1 month

    5. Water supply Arrangements 2 weeks

    6. Erection and installation of machinery 1 month

    7. Initial Procurement and commissioning 1 month

    8. Trial Runs 2 weeks