Fueling growth in India
Biodiesel could be the environmentally sound response to the sub-continent's rapid economic development, an Oxford University MBA project finds.
Did you know that there are more than 1.900 Biodiesel retail pumps offering Biodiesel (one every 17 km) in Germany? Or that Biodiesel is not only on average 15% cheaper than regular diesel (in Germany), but in some tests shows even higher performance?
These were among the findings of a study on the global Biodiesel market by a team of four MBA students - Alex Valassopoulos, Sujeet Kumar, David B. Brooks and Shashank Verma - from Oxford University. In their two-month study, which is a major part of the one-year MBA program at Oxford, the students examined business opportunities for Biodiesel, in particular in the fast developing Indian market.
Even though Biodiesel represents less than 2% of the total diesel market at the moment, the worldwide market volume is estimated at about EUR 4 billion in 2007 and more than EUR 10 billion in 2010. Due to high subsidies and strong environmental legislations, the bulk of the market is in Europe, with a volume of almost EUR 3 billion. By 2010 EU legislation demands at least 6% of the total diesel market being Biodiesel, which means that Biodiesel is expected to be a major growth segment in the coming years.
Did you know that there are more than 1.900 Biodiesel retail pumps offering Biodiesel (one every 17 km) in Germany? Or that Biodiesel is not only on average 15% cheaper than regular diesel (in Germany), but in some tests shows even higher performance?
These were among the findings of a study on the global Biodiesel market by a team of four MBA students - Alex Valassopoulos, Sujeet Kumar, David B. Brooks and Shashank Verma - from Oxford University. In their two-month study, which is a major part of the one-year MBA program at Oxford, the students examined business opportunities for Biodiesel, in particular in the fast developing Indian market.
Even though Biodiesel represents less than 2% of the total diesel market at the moment, the worldwide market volume is estimated at about EUR 4 billion in 2007 and more than EUR 10 billion in 2010. Due to high subsidies and strong environmental legislations, the bulk of the market is in Europe, with a volume of almost EUR 3 billion. By 2010 EU legislation demands at least 6% of the total diesel market being Biodiesel, which means that Biodiesel is expected to be a major growth segment in the coming years.
The prize winning team: Sujeet Kumar, David B. Brooks, Shashank Verma and Alex Valassopoulos
While Biodiesel is a fast-growth product, it will perhaps prove most beneficial in one of the world's fastest growing economies: India. With a market estimate of EUR 3 billion by 2010 and more than 60 million hectares of land lying idle, it is both an ideal market for selling and producing Biodiesel. The country is on track to becoming the biggest national Biodiesel market in the world by 2015 ($12 billion).
As part of a three week field research period in the country, the Oxford students interviewed current Biodiesel producers, government officials and university professors to gain a better understanding of local market dynamics. Their final case earned received a distinction from the Oxford Examiners and was judged one of the best summer projects for the Oxford MBA class of 2005.
Roland Berger Strategy Consultants was a sponsor and active mentor to the students during their work. Project Manager Christian Paul and Senior Consultant Thorsten Dippel helped the team to structure their work, focus their analysis and develop the key conclusions.
In the meantime, the students have taken their interest in the Indian Biodiesel market a bit further.One of the project team members, Shashank Verma, has established a core group that will launch a Biodiesel venture in India. The government is set to create a national mission on Biodiesel, which will set mandatory blending requirements for diesel sold in retail (likely 5% Biodiesel) - a unique business opportunity for the young entrepreneurs. Their focus now lies on refining models for Jatropha plantations – the prime source of Biodiesel in India - with contractors, farmer co-ops and NGOs. While there are a number of challenges ahead, the Roland Berger Strategy Consultants project allowed the students to explore a realistic business venture, which led to securing the investment they needed to get their business off the ground.
Roland Berger Strategy Consultants is very involved with the MBA program at Oxford University. Apart from regular company presentations and business case workshops, the company has now supported a summer business project for the fourth year running. As a result, MBA graduates from Oxford have joined the consultancy's offices in Germany, Switzerland and China over the past few years.
As part of a three week field research period in the country, the Oxford students interviewed current Biodiesel producers, government officials and university professors to gain a better understanding of local market dynamics. Their final case earned received a distinction from the Oxford Examiners and was judged one of the best summer projects for the Oxford MBA class of 2005.
Roland Berger Strategy Consultants was a sponsor and active mentor to the students during their work. Project Manager Christian Paul and Senior Consultant Thorsten Dippel helped the team to structure their work, focus their analysis and develop the key conclusions.
In the meantime, the students have taken their interest in the Indian Biodiesel market a bit further.One of the project team members, Shashank Verma, has established a core group that will launch a Biodiesel venture in India. The government is set to create a national mission on Biodiesel, which will set mandatory blending requirements for diesel sold in retail (likely 5% Biodiesel) - a unique business opportunity for the young entrepreneurs. Their focus now lies on refining models for Jatropha plantations – the prime source of Biodiesel in India - with contractors, farmer co-ops and NGOs. While there are a number of challenges ahead, the Roland Berger Strategy Consultants project allowed the students to explore a realistic business venture, which led to securing the investment they needed to get their business off the ground.
Roland Berger Strategy Consultants is very involved with the MBA program at Oxford University. Apart from regular company presentations and business case workshops, the company has now supported a summer business project for the fourth year running. As a result, MBA graduates from Oxford have joined the consultancy's offices in Germany, Switzerland and China over the past few years.
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