The 'Indian Biofuel Industry' Report Analyzes The Current Biofuel Market In India

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/a11572/indian_biofuel_ma)
has announced the addition of the "Indian Bio-fuel Market" report to
their offering.

The 'Indian Biofuel Industry' report analyzes the current biofuel
market in India. It focuses on the causes for the growing demand of
biofuels, the manufacturing technologies for the production of
biofuels and government regulations. This report also enumerates the
opportunities and challenges faced by the biofuel industry in India
along with the current trends, addressing the client needs.
Additionally, the report covers the future outlook of the industry.

About the Industry:

The surge in crude oil prices is driving the demand for
alternative energy sources such as biofuel across the world. Most of
the countries have been focusing on the development of biofuels to
negate the effects of rising crude oil prices apart from addressing
vehicular pollution and global warming. India, being one of the
developing countries with huge energy demand is increasingly focusing
on an alternative source of fuel. The country started its biofuels
journey in 2003 with an impressive growth rate till today. The output
of ethanol, the chief biofuel, logged an impressive growth rate of
200% in 2005 (F.O. Licht, May 2006). India produces ethanol from
molasses and biodiesel is produced from jatropha. In addition,
possibilities are being explored to manufacture ethanol from sweet
sorghum and maize. The Government is also actively taking interest to
ramp up biofuel production.

Research Methodology Used:

-Information Sources

The information has been gathered from authentic and reliable
sources like Government Agencies, Trade associations, Trade journals,
Industry portals Newspapers, White papers and Books. The data is also
sourced from paid databases.

-Analysis Method

The methods of Historical Trend Analysis, Ratio Analysis, and
Cause and Effect Analysis have been used.

Scope of the report:

-The report analyzes the current biofuel market in India. It
focuses on the causes for the growing demand for biofuels, the
manufacturing technologies for the two major types of biofuels namely
ethanol and biodiesel and government regulations.

-The report also lays out the possible opportunities and
challenges for the biofuel industry. While growth of biofuels is
expected to be beneficial for the Indian sugarcane industry and power
mobile networks in electricity-starved rural areas, it might also
create problems related to allocation of land and water resources.
Moreover, fluctuations in the cost of molasses and ensuring proper
pricing and supply of ethanol would have to be addressed.

-The report further enumerates various corporate initiatives in
the sector and describes the regulatory issues in key global markets
such as the US, China and Brazil. The final section dwells on the
future prospects of the biofuel industry.

Prospective Target Audience:

-Players from the PE/VC industry

-Consulting firms (looking for aggregated information that
validates their own findings)

-In-house strategy teams of companies that operate in the
individual industry sectors or that seek to enter these sectors.

Demand for alternative energy sources is rising rapidly all over
the world. Government across the world have been focusing on the
development of biofuels such as ethanol and biodiesel to mitigate
vehicular pollution, address global warming and reduce dependence on
hydrocarbons as the primary source of energy. In India, the output of
ethanol, the chief biofuel, logged an impressive growth rate of 200%
in 2005 (F.O. Licht, May 2006). India produces ethanol from molasses
and biodiesel is produced from jatropha. In addition, possibilities
are being explored to manufacture ethanol from sweet sorghum and
maize. The government has also sought to frame enabling legislation to
ramp up biofuel production. For instance, one policy decision that has
been discussed in official circles has been to permit the usage
low-grade sugar for ethanol production. Blending of 10% ethanol with
petrol -- as against optional 5% for individual states -- is slated to
be made mandatory from October 2008 to curb vehicular emissions.
Various companies in the private corporate sector have embarked on a
coordinated plan to expand production capacities. The state oil
marketing companies have been looking to collaborate with Brazil, one
of the largest producers and the largest exporter of ethanol in the
world. The terms of collaboration include ownership or leasing of land
acreages, production units and technological know-how.

However, the Indian biofuel industry continues to face several
challenges. Fast population growth, rising income levels, increasing
demand for agricultural products and flawed government policies have
been putting the country's land and water resources under enormous
strain. The growing emphasis on expanding biofuel production capacity,
primarily through the augmentation of ethanol output based on
irrigated sugarcane, is expected to put further pressure on water
resources. It might also lead to the diversion of land from food crops
to sugarcane. An additional concern is the fluctuation in the cost and
supply of molasses, the primary raw material for ethanol and itself
dependent on the price of sugarcane. This leads to the issue of
rationalization of ethanol pricing and supply and the need to
stabilize the 5% ethanol blending programme to ensure the smooth
transition to the 10% programme.

Overall, the biofuel industry is expected to grow at a strong rate
in the medium-term with the help of proactive government initiatives
and mechanisms to expand production capacity and minimize price
fluctuations of key raw materials. Moreover, the generation of
biodiesel from jatropha is expected to increase and its usage in
diesel cars leading to a reduction in emissions.

For more information visit
http://www.researchandmarkets.com/research/a11572/indian_biofuel_ma.

Research and Markets
Laura Wood
Senior Manager
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
press@researchandmarkets.com

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