BHARATI AUTOGAS

CORPORATE PRESENTATION

AUGUST 2012

india Auto gas

A brief snapshot on the Auto Industry and pollution

Bharati Autogas india Auto gas

Bharati Autogas Industry

Production of 9 Lac vehicles a year Growth of 7.5% per annum All automobile majors are now in India 85 variants 70% of pollution is caused by automobiles Most automobiles run on two fuels- Petrol and diesel

Bharati Autogas india Auto gas

Effects of Vehicular pollutants on Human beings

Pollutant and source CO (from gasoline cars, 2 wheelers & 3 wheelers) NOx (from diesel vehicles) Ozone Health Effects Toxic to human foetus Irritation of respiratory tract, eye, nose and throat irritation, risk to asthmatics Extremely toxic, affects nervous system and blood Drowsiness, eye irritation, coughing Carcinogenic

Lead (from petrol vehicles) HC (Mainly from 2 wheelers and 3 wheelers) PAH (from diesel vehicles)

Bharati Autogas india Auto gas

Assessment of subjects to adverse traffic effects

(Source : World Health Organisation)

Problem
Eye irrigation Throat problem Respiratory Discomfort Discomfort with smoke Skin aliment Effect of hearing Annoyance with noise Other problems

Lesser exposed 89.7 76.9 59.0 97.4 20.5 51.3 89.7 89.7

Greater exposed 93.9 93.9 45.5 97.0 27.3 57.6 90.9 90.9

Exposed 91.7 84.7 55.5 97.2 25.0 54.2 90.3 90.3

Controlled 27.9 14.4 4.7 76.7 7.0 7.0 65.1 34.9

Bharati Autogas india Auto gas

Occupational Hazards
(A Study by CRRI, Delhi)

GROUP Lesser Exposed Greater Exposed

Abnormal % 10.3 27.3

Normal % 89.7 72.7

Exposed Group
Controlled Group

18.1
16.3

81.9
83.7

Bharati Autogas india Auto gas

Health Cost
Nature of effect Premature deaths Hospital admissions and sickness requiring medical treatment Minor sickness (including restricted activity days and respiratory symptom days) No.of cases 40,351 Cost (US $ million) 170-1,715

19,800,000

25-50

1,201,300,000 322-437

Bharati Autogas india Auto gas

Health Cost
Mr.Brandon and Mr.Hommann (World Bank) worked on the value for a life in India as US $ 4,208 to US $ 40,017 Assuming each person dying prematurely of air pollution would have lived for another 10 years, the monetary loss due to 40,000 premature deaths in between US $ 170 million (Rs.782 crores) and US $ 1,615 million (Rs.7429 crores)

Bharati Autogas india Auto gas

An alternative green fuel: Auto LPG

Bharati Autogas india Auto gas

Advantages of LPG as vehicle fuels against vehicle pollution

(TNO- Netherland- Report on Exhaust gas components)

Direct toxic and nuisance effects

Petrol LPG Carbon monoxide (CO) 100 50 Diesel 35

Nitrogen dioxide (NO2)

Particulate (PM)

100
100

100
50

1000
700

Formaldehyde,Acetaldehyde, Acrolein

100

50

500

Bharati Autogas india Auto gas

Air toxics from different fuels

(Source - J.E. Sinor Consultants Inc, Oak Brook, Illinois, USA)
Air toxics LPG CNG Petrol Reformu Diesel lated petrol Medium Unknown Methanol M85 Low Ethanol E85 Low

1.3Butadiene

Low

Low

Medium

Benzene
Formaldehyde Acetaldehyde

Low
Low Low

Low
Low Low

High
Medium Low

Medium
Medium Low

Medium
Medium Low

Medium
High Low

Medium
Medium High

Bharati Autogas india Auto gas

Regional and Global Effects

Petrol
Summer smog (Ethane equivalent) Winter smog (particulate matter) 100 100

LPG
50 50

Diesel
45 700

Acidification (NOx and SO2) 100

Global warming potential (CO2andCH4) 100

60
87

350
89

Bharati Autogas india Auto gas

Property

Petrol

CNG

LPG (Source : World Health Organisation) Would be 54

Running cost per km. (for car running at 10 km / litre mileage)

If this is 100

Would be 35

Storage

Under normal pressure Through tankers

Under 200 Bar pressure Through pipeline

Under 7 Bar pressure

Transport of fuel within country Availability of fuel

Through tankers

Throughout India

Only in Mumbai, Surat, Ahmedabad & Delhi

90 cities in India

Pollution test

CO - 2.30% HC - 350 PPM

300 kms.

CO - 0.20% HC - 150 PPM

150 kms.

CO - 0.20% HC - 50 PPM
480 kms.

Running range with full tank Car tank filling time

2 Minutes

10 Minutes + waiting in queue

2 Minutes

india Auto gas

Implementation of LPG as Auto Fuel

Availability of Dispensing Stations Availability of Conversion Equipments Availability of Conversion Centers

Bharati Autogas india Auto gas

Bharati Autogas industry Scenario

Globally, Italy the largest consumer of Auto LPG followed by Japan, Korea and Turkey Govt. of India has enacted laws and rules to promote LPG/CNG as ideal fuel Auto LPG sales will witness an average phenomenal growth of 200 % Supreme Court orders to all State Governments to provide Government lands for installations of ALDS

Bharati Autogas india Auto gas

Time lag between accepting nomination and commissioning of ALDS quite high Slow paced acceptance rate of the benefits of using ALPG among public; nevertheless acceptance growing prevalence Periodical product knowledge campaigns conducted by operators to differentiate between ALPG & LPG Insufficient ALDS Stations to cater the growing demand of the consume

Bharati Autogas Industry Scenario (Contd.)

Bharati Autogas india Auto gas

Bharati Autogas LPG Industry Growth

200304 Industry Sale: TMT % INCREASE 9.7 2004 05 31.1 200506 76.7 200607 180 200708 299 200809 350

220%

147%

233%

160%

150%

Bharati Autogas india Auto gas

About BAG
Founded in 2011, BAG is An aspiring private energy firm

We are an environment friendly energy firm

We are the pioneers in the autogas industry Our primary objective is to promote Auto LPG and green fuels in India BAG is the leader in the autogas industry in South India through sustained aggressive growth and high profitability We use cutting edge Italian technology

Bharati Autogas india Auto gas

BACL: A background
Govt. of India approved autogas trial in June 1999 Govt. of India permitted BAG to enter Auto LPG business in 2012

as india Auto gas Bharati Autogas

Bharati Autogas
Vision 1000 To be the largest player in Auto LPG industry To attain 20% market share 450 firm owned ALDS within 3 years Areas of operation TN,AP,KA,MH and KL

Bharati Autogas india Auto gas

Rationale behind Vision 1000

Existing market needs around 5000 ALDS We have identified 980 locations We will identify balance to reach 450 soon Negotiation are on and in process

india Auto gas

Bharati Autogas
BUSINESS CONCEPT: PROCESS Identification of land owners with sound financial capacity Inspection of site for viability study Calling potential prospects for personal discussion Signing of Franchisee Agreement or Operator Agreement Implementation of the project Commencement of sales

Bharati Autogas india Auto gas

How will you achieve Vision 1000?

The locations are identified Regional Offices are opened Negotiating with various persons and authorities ALDS were already opened Finance proposals were given to FIs I year financial Programme is tentatively accepted Documentation Pending Manpower is targeted

india Auto gas

Bharati Autogas
About Schemes THE SCHEMES ARE DESIGNED LIKE GOVT OIL COMPANIES firm will invest in Civil, Buildings, plant and Machinery firm will issue its license Operator has to lease the land to firm Operator to take care of Local NOCs

Bharati Autogas india Auto gas

Bharati Autogas
Benefits to the Govt. Achieving the Vision of eradicating Vehicular Pollution Saving Subsidy of Diesel More tax receipts from Auto LPG than Domestic LPG Advantages to Consumer Avail Auto LPG in more locations Less expensive More Engine life Help the country eradicate vehicular pollution A win-win situation for everyone

Bharati Autogas india Auto gas

Bharati Autogas
PROPOSED PROJECTS
2012-13
40MT storage one at Tamil Nadu and one at AP Number of new CODO ALDS 39

2013-14

100MT storage one at Karnataka and one at Maharastra Number of new CODO ALDS 180

2014-15

Second 100MT storage one at Tamil Nadu and at AP Number of new CODO ALDS 360

Bharati Autogas india Auto gas

Bharati Autogas
Investment plan
Rs in Crores

Year PROJECT COST Loan Promoters contribu tion

2012 2013 2014 2015 2017 2019 2020-13 -14 -15 -16 -18 -20 21 127.3 30.44 9 251 374 154 292 333 292 120

12.56 52.54 103.5

120 137

17.88 74.85 147.5

220

172

196

172

Bharati Autogas india Auto gas

Bharati Autogas firm Limited

Sales Projections
Rs in Crores

Year DODO CODO Bulk Sales Total

201213 46.77

201314

201415

2015-16

201718

2019- 202020 21

89.77 134.97

180.16

315.7 225.36 270.56 6 1,666.6 2,209. 2,777 8 68 .79 721.7 427.10 555.23 9 3,035 3,815 .47 .35

8.16 137.06 466.63 1,022.19 97.20 194.40 252.72 152.13 421.2 3 854.3 1 328.54

1,530.8 2,319.1 9 4

Bharati Autogas india Auto gas

Thank You

Bharati Autogas india Auto gas