BUSINESS PLAN ON BIO-DYES: PRELIMINARY RESULTS. Stefania Giansanti UNISI

Transcription

1 Bioprocessing for Sustainable production of COLoured textiles BUSINESS PLAN ON BIO-DYES: PRELIMINARY RESULTS Stefania Giansanti UNISI

2 BUSINESS PLANNING

3 BUSINESS PLAN & DIFFERENT PROJECTS Turnaround strategy STRATEGIC BP Listing New corporate strategy New business strategy NEW VENTURE BP Spin off Start up NEW PRODUCT/NEW TECH BP New product development New concept development New technology development

4 STRUCTURE OF A BUSINESS PLAN Executive summary Market research Market approach analysis Operation and Resources Financial potential Cash flow analysis Complementary analysis and informations

5 KNOWNING THE MARKET Macro-environment Environmental analysis Partners Micro-environment Internal environment Legal analysis Politic analysis Suppliers Labour force Money Machinary Customers Social analysis Raw materials Markets Technological analysis Economic analysis

6 Global warming and water shortage PoliticEST ANALYSIS Global warming is now becoming one of the top topics of politicians and consumer debates. It is now considered as an environmental, economical but also security issue. Beside this issue, access to water is becoming a major geopolitical issue. Some 1.1 billion people in developing countries have inadequate access to water, and 2.6 billions lack basic sanitisation. 12% of the world s population uses 85% of its water, and these 12 percent do not live in the Third World. Situations such as water scarcity may exacerbate conflict along economic, ethnic or sectarian divisions and may lead to large displacements of people and mass migration. Directives EU directives to protect the worker & consumer s health: Dangerous Substances Directive (67/548/EEC), REACH & Restrictions on the marketing and use of certain dangerous substances and preparations (azocolourants) Directive (2002/61/EC). The European Lead Market Initiative (SEC/2007/1729 and SEC/2007/1730). THE MAIN OBJECTIVE IS TO CREATE A LEGAL, POLITIC AND SOCIO-ECONOMIC CONTEXT TO PROMOTE THE EMERGENCE OF INNOVATIVE HIGH POTENTIAL MARKETS, PRODUCTS AND SERVICES THROUGH COHERENT AND COORDINATED ACTION. SIX MARKETS HAVE BEEN HIGHLIGHTED IN THIS INITIATIVE AND SPECIFIC MEASURES WILL BE OR HAVE BEEN PLANNED, ONE OF THESE IS RELATED TO BIOBASED PRODUCT.

7 PEconomicST ANALYSIS Since China, India & other developing countries hugely need energy resources, industrial producers look for les energy consumer process, creating in this case a potential for emerging green technologies Textile market is pretty cyclic and seasonable. This could influence the market demand for a specific color of dyes. The textile dye market is more and more concentrated since about 65% of the market is owned by 3 major multinational leaders; Dystar, Huntsman, Clariant. Europe is not competitive on traditional colour dyestuff and has to propose products with higher added value. The most obvious example is the increase of organic cotton sales

8 PESocialT ANALYSIS Consumer go for cleantech products: hybrid cars, solar hot-water heaters, energyefficient lighting. After the bio-food and the bio-houses, the spotlight is now on the bioclothes. A French market study (Credoc, 2007) reveals that 44% of French people declare to take in account a citizen commitment bio/fair-trade/local/eco-friendly (+6% comparing to 2002). 26% declare to look for products having no pollution creation in their production process. Consumer has understood the added value provided by an eco-friendly product. 61% of French consumers (Credoc market study, 2007) declare to be ready to pay 5% more to obtain citizen product.

9 PESTechnological ANALYSIS The introduction of new eco-dyes on the market will require investment in machinery adaptation or new equipment acquisition. The production of the eco-dyes also necessitates the use of specific biological raw materials which are not yet very common on the market. This could become a bottleneck if the market of eco-dyes grows too fast.

10 SUPPLY CHAIN DYES DYE WORKS WEAR B2C B2B

11 PRATO DISTRICT Textile Clothing industries Total Enterprises 3,592 3,930 7,522 employees 24,500 15,500 40,000 Turnover (million ) 3,250 1,318 4,568 Export (million ) 1, , % industries 55.5% small business Total turnover 2008 (million ): 1. Yarns Weaving 1, Knitting Other (non wowen) TEXTILE ENTERPREES 3, Knitwear Clothing Garments TEXTILE AND CLOTHING 4,568

12 MARKET RESEARCH ON BIO-DYES Intervieweed textile companies = Which is the quantity of textile yearly dyed (in kg)? 103,760; 68,970; 93, 210; 109,910; 130,210; 102,000; 86,518; 98,748; 79,760; 102,201; 87,515; 155,000; 260,000; 5,000; 78,512; 65,410; 108,120; 49,710; 69, How relevant are these characteristics (from 1 for nothing to 5 for very important)? light resistence - washing resistence - toxicity -degradability % 95% % % 37% 47% % 47% 37% 3. How many relevance do you give to the product safety? -Nothing - -notmany - -Enough 79% -verymuch 21%

13 MARKET RESEARCH ON BIO-DYES 4. Are you interested to use dyes with low environmental impact and lower toxicity? -Nothing -notmany -Enough -verymuch % 16% 5. Which is a right price for a dye with the above characteristics? <15 32% 42% 21% 5% 6. In your opinion, could be your customers interested to buy a product bio labelled? -Nothing - -notmany - -Enough -verymuch 63% 37% In which field? Brand-name goods or

14 MARKET RESEARCH ON BIO-DYES

15 ECONOMIC POTENTIAL Laboratory scale Fixed costs Variable costs for 1kg of bio-dye Liophylizer Bioreactor phmeter Distilled water kit Bidistelled water kit Analytical balance Spectrophotometer UV-Vis Laboratory glass Water Precursor Immobilized enzyme Other reactants Manpower Energy Consumables Total 0,18 0,43 2,98 2,90 15,22 1,33 1,90 24,94 Total (Io) ,00

16 ECONOMIC POTENTIAL Ipotesi Yearly FC Io P Selling price/kg DC Distibution costs CF Cash flow Q Quantity of produced biodyes (ton) Hp ,00 15 Hp ,00 15 Hp ,00 15 Hp ,00 15 Hp ,00 15 Hp ,00 15 Hp ,00 15 Hp ,00 15 Hp ,00 15 Hp ,00 30 Hp ,00 30 Hp1 Hp2 Hp3 Hp4 Hp5 Hp6 Hp7 Hp8 Hp9 Hp10 Hp11 NPV PI ,13 1,99 3,86-7,19 0,64 2, ,00 1,65 3,19 0,13 1,99 IRR n.d. 27,49% 53,63% n.d. n.d. 34,74% n.d. 27,49% 53,63% n.d. 55,40% ROI n.d. 19,93% 38,60% n.d. n.d. 25,06% n.d. 16,48% 31,90% n.d. 19,93% DPBT n.d. 7,00 3,22 n.d. n.d. 5,29 n.d. 8,98 3,99 n.d. 7,00

17 INFLUENCE OF SALES PRICE Price CF NPV PI DPBT IRR ROI 25, ,99 7,00 27,49% 19,93% 25, ,18 6,26 30,14% 21,80% 26, ,37 5,66 32,78% 23,67% 26, ,55 5,17 35,40% 25,53% 27, ,74 4,76 38,02% 27,40% 27, ,93 4,41 40,63% 29,27% 28, ,11 4,11 43,24% 31,13% 28, ,30 3,84 45,84% 33,00% 29, ,49 3,61 48,44% 34,87% 29, ,67 3,40 51,04% 36,73% 30, ,86 3,22 53,63% 38,60%

18 SENSITIVITY INDICATORS ,00 NPV PI 4, ,00 3, ,00 3, ,00 VAN , ,00 2,50 2,00 1,50 1,00 0,00 60,00% 25,00 0,50 25,50 26,00 26,50 27,00 27,50 28,00 - /Kg 28,50 S1 29,00 29,50 25,00 25,50 30,00 26,00 26,50 SELLING BIO-DYES AT /kg IS POSSIBLE TO ACHEIVE 27,00 RETURNS ON 27,50 28,00 /Kg 28,50 29,00 29,50 INVESTMENT IRR OF 30% YEARLY AND PAYBACK TIME OF LESS THAN 5 YEARS DPBT 8 30,00 S1 IP 50,00% ,00% 5 30,00% 20,00% Anni ,00% 2 1 0,00% 2 5,0 0 25,50 26,00 26,50 2 7,0 0 / K g 27,50 28,00 28,50 29,00 29,50 30,00 S1 0 25,00 25,50 26,00 26,50 27,00 27,50 /Kg 28,00 28,50 29,00 29,50 30,00 S1

19 SUPPLY CHAIN DYES DYE WORKS WEAR B2C B2B