About ShubhShree Biofuels Energy Limited

ShubhShree Biofuels Energy is engaged in the business of manufacturing & supplying of biomass fuels, which includes biomass pellets and briquettes. These biomass fuels are an alternative source of energy which are basically used in commercial and industrial heating, cooking fuel, industrial burning and electricity generation, as an alternative to fossil fuels like coal, firewood, lignite, Agri-waste etc. The briquettes are majorly used for industrial purposes like running boilers etc. and the pellets are majorly used as cooking fuel or commercial purposes. They are currently selling these pellets and briquettes to customers who are engaged in the business of recycling material, textile processing, pharmaceutical, metal etc. 

These Biomass pellets and briquettes are built from recycled green waste, producing less greenhouse gas emission. The main raw material used in the manufacturing of biomass fuels include Agri-waste, saw dust, farm waste etc. They currently sell majority of their products in the Northern States of India among which especially Haryana, Uttar Pradesh, Rajasthan and NCR region being the highest contributor to their revenue from operations. Their top 5 customers contribute majority of their revenues from operations. Further, the company has recently received a purchase order for short term supply of biomass approximately 1600 tonnes to a company engaged in pharmaceutical industry and also received an order for supply of biomass pellets approximately 14600 tonnes for a period of 1 year from a power sector company.

BIOFUEL SECTOR
Bio-fuels provide a strategic advantage to promote sustainable development and to supplement conventional energy sources in meeting the rapidly increasing requirements for transportation fuels associated with high economic growth, as well as in meeting the energy needs of India’s vast rural population. Bio-fuels can increasingly satisfy these energy needs in an environmentally benign and cost-effective manner while reducing dependence on import of fossil fuels and thereby providing a higher degree of National Energy Security. The Indian approach to bio-fuels is based solely on non-food feedstocks to be raised on degraded or wastelands that are not suited to agriculture, thus avoiding a possible conflict of fuel vs. food security.

Biofuels are drawing increasing attention worldwide as substitutes for petroleum-derived transportation fuels to help address energy cost, energy security and global warming concerns associated with liquid fossil fuels. The term biofuel is used here to mean any liquid fuel made from plant material that can be used as a substitute for petroleum-derived fuel. Biofuels can include relatively familiar ones, such as ethanol made from sugar cane or diesel-like fuel made from soybean oil, to less familiar fuels such as dimethyl ether (DME) or Fischer Tropsch liquids (FTL) made from lignocellulosic biomass. 

A relatively recently popularized classification for liquid biofuels includes “first-generation” and “second generation” fuels. There are no strict technical definitions for these terms. The main distinction between them is the feedstock used. A first-generation fuel is generally one made from sugars, grains, or seeds, i.e. one that uses only a specific (often edible) portion of the above-ground biomass produced by a plant, and relatively simple processing is required to produce a finished fuel. First-generation fuels are already being produced in significant commercial quantities in a number of countries. Second-generation fuels are generally those made from non-edible lignocellulosic biomass, either non-edible residues of food crop production (e.g. corn stalks or rice husks) or non-edible whole plant biomass (e.g. grasses or trees grown specifically for energy). 

Alcohol fuels can substitute for gasoline in spark-ignition engines, while biodiesel, green diesel and DME are suitable for use in compression ignition engines. The Fischer-Tropsch process can produce a variety of different hydrocarbon fuels, the primary one of which is a diesel-like fuel for compression ignition engines.

While there is much attention on biofuels for the transport sector, the use of biofuels for cooking, is a potential application of wide relevance globally, especially in rural areas of developing countries. In all cases, combustion of biofuels for cooking will yield emissions of pollutants that are lower (or far lower) than emissions from cooking with solid fuels. Some 3 billion people in developing countries cook with solid fuels and suffer severe health damages from the resulting indoor air pollution. Thus, biofuels could play a critical role in improving the health of billions of people. It is noteworthy that the scale of biofuel production needed to meet cooking energy needs is far smaller than that for meeting transportation fuel needs. One estimate is that some 4 to 5 exajoules 2 per year of clean cooking fuel would be sufficient to meet the basic cooking needs of 3 billion people. This is the equivalent of about 1 per cent of global commercial energy use today.

Many industrialized countries are pursuing the development of expanded or new biofuels industries for the transport sector, and there is growing interest in many developing countries for similarly “modernizing” the use of biomass in their countries and providing greater access to clean liquid fuels. Biofuels may be of special interest in many developing countries for several reasons. Climates in many of the countries are well suited to growing biomass. Biomass production is inherently rural and labor-intensive, and thus may offer the prospects for new employment in regions where the majority of populations typically reside. Restoration of degraded lands via biomass-energy production may also be of interest in some areas. The potential for producing rural income by production of highvalue products (such as liquid fuels) is attractive. The potential for export of fuels to industrialized-country markets also may be appealing. In addition, the potential for reducing greenhouse gas emissions may offer the possibility for monetizing avoided emissions of carbon, e.g., via Clean Development Mechanism credits.

First Generation Bio-Fuels
The most well-known first-generation biofuel is ethanol made by fermenting sugar extracted from sugar cane or sugar beets, or sugar extracted from starch contained in maize kernels or other starch-laden crops. Similar processing, but with different fermentation organisms, can yield another alcohol, butanol. Commercialization efforts for butanol are ongoing, while ethanol is already a well-established industry. Many countries are expanding or contemplating expanding their first-generation ethanol production, with Brazil and the United States having by far the largest expansion plans. From the perspective of petroleum substitution or carbon emissions mitigation efficiencies, the potential for most first-generation biofuels is limited. In addition, the significant amount of fossil fuel used to produce this ethanol substantially offsets the carbon emissions reductions from photosynthetic uptake of carbon by the corn plants.

Second Generation Bio fuels
Second-generation biofuels share the feature of being produced from lignocellulosic biomass, enabling the use of lower-cost, non-edible feedstocks, thereby limiting direct food vs. fuel competition. Second-generation biofuels can be further classified in terms of the process used to convert the biomass to fuel: biochemical or thermochemical. Second-generation ethanol or butanol would be made via biochemical processing, while all other second-generation fuels discussed here would be made via thermochemical processing. Second-generation thermochemical biofuels may be less familiar to most readers than second-generation ethanol, because there are no first-generation analogs. On the other hand, many second-generation thermochemical fuels are fuels that are already being made commercially from fossil fuels using processing steps that in some cases are identical to those that would be used for biofuel production. These fuels include methanol, refined Fischer-Tropsch liquids (FTL), and dimethyl ether (DME). Mixed alcohols can also be made from fossil fuels, but. The other thermochemical biofuel in is green diesel, for which there is no obvious fossil fuel analog. Unrefined fuels, such as pyrolysis oils, are also produced thermochemically, but these require considerable refining before they can be used in engines.

SHUBHSHREE BIOFUELS ENERGY LIMITED COMPETITIVE STRENGTHS
1. Location Advantage
2. Customer Centric Approach
3. Eco- friendly product
4. Experienced Promoter and Management team

SHUBHSHREE BIOFUELS ENERGY LIMITED STRATEGIES
1. Capitalize on the government awareness towards use of biomass
2. Focus towards increasing the share of manufactured goods
3. Widening their customer base
4. Increasing their geographical presence

SHUBHSHREE BIOFUELS ENERGY LIMITED RISK FACTORS & CONCERNS
1. They have a history of net losses in past and any losses or their inability to achieve profitability may have an adverse effect on their operations.
2. The biomass fuel industry is a relatively new concept and is yet to have a defined market as compared to conventional fuels, on account of which they have to face resistance from the potential customers to switch to biomass fuel.
3. The Company is engaged in the business of supplying of biomass fuels and has commenced manufacturing of pallets during last one year.
4. They generate almost entire of their sales from their operations in certain geographical regions especially Northern India and any adverse developments affecting their operations in these regions could have an adverse impact on their revenue and results of operations.
5. They depend on third parties for a major portion of their transportation needs.
6. The absence of entry barriers into bio-pellets or briquettes production may attract players from both organized and unorganized sectors which can escalate competition and resultant price pressure on the products.