Degree

Master of Business Administration

Faculty / School

Faculty of Business Administration (FBA)

Advisor

Shabih Hadier

Project Coordinator (Internal)

Salma Mirza

Project Coordinator (External)

Mr. Yawar A. Herekar, Mr. Saud Pasha

Client

Engro Foods Limited

Committee Member 1

Mr. Shabih Hadier, Institute of Business Administration, Karachi

Project Type

MBA Research Project

Abstract / Summary

he scope of this project was to develop a pre-feasibility study for a waste to energy project for Engro Corporation. After initial research and consideration of alternatives, the premise was narrowed down to conducting the pre-feasibility for Engro Foods, Nara Farms. The location of Nara farms is in Nara, Sindh, 40 km off Rajasthan, India. Currently, there are approximately 2500 animals out of which 1500 are adult cows, and 1000 are small calves. The study is to be developed for use of waste generated by 1900 adult cattle. Amongst the situations that led to the biogas desirability at Nara and hence the need for conducting a study to explore this option were, the availability of organic matter which would otherwise be wasted; that other fuels are practically not available; and the fact that other sources of energy or fuels are more expensive or their supply is unreliable as the farm currently works on diesel which results in exorbitant outflows and thereby having a fuel at one's own disposal would be of specific advantage. The research methodology for this feasibility study comprised primary and secondary research and the conclusions drawn were that the current farm energy requirement was of 0.5 MW with a projected requirement of 1 MW after expansion and only 55% of the manure collected could be used for biogas production, as the rest gets mixed with sand. After an in depth study of various digesters‟ and after discussions with the Farm Manager, the Plug-flow and Complete mix digesters were deemed to be most appropriate for further analysis. The team identified 3 sources of potential revenue stream for Engro Foods, the streams being: Organic Fertilizer, Biogas generation (savings on diesel usage) and Carbon Credits. Upon analysis it was determined that carbon credits are not a viable option for the project at hand as the scale is too small and the associated investments are too large to make them economically feasible. Calculations on organic fertilizer have been made to project any potential revenue that can be generated from the effluent produced. Biogas generation and the associated net present value over 10 years have been calculated for two separate cases, Case A with sale of organic fertilizer and Case B without sale of organic fertilizer. Four different scenarios have been assessed in each case, Option A: Plug Flow technology with Landhi Cattle Colony (ADB) manure estimates; Option B: Complete Mix technology with Landhi Cattle Colony (ADB) manure estimates; Option C: Plug Flow technology with Engro Foods (Usman Sarwar‟s) manure estimates; Option D: Complete Mix technology with Engro Foods (Usman Sarwar‟s) manure estimates. After due considerations and financial analysis, we have determined that the most feasible alternative for Engro Foods is Option C, i.e. a Plug Flow Digester when used with daily manure estimates as provided by the Farm Manager at Nara (i.e. 50 kg per cow per day). This scenario is feasible for both Case A and B and with positive NPV, IRR and ROI figures for both.

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