credaiand registered as credai clean city movement. •11 tonnes of bio degradable rejections per...

CREDAI CLEAN CITY MOVEMENT

LTD

Strictly Private and Confidential

Contents

2

I Company Overview

II Investment Proposition

III Transformation from NGO to For-Profit

IV Financial Performance - A Snapshot


Company Overview

3


Introduction to CCCM (1/2)

CCCM proposes to establish itself as a social enterprise to handle the increasing volume

of waste being generated in India through eco-friendly, economical and self sustainable

rejection management solutions.

4

Multiple

Modes of

Revenue

CCCM

CCCM

Various

Types of

Waste

– bio-waste,

plastic, e-

waste

Rejection Handling –

Households &

Industries

Sale of Compost,

Recycled Plastic and

Precious Metals

Consultation and

Awareness Creation

Trained Manpower

Established

Processes

Proven

Technologies


CCCM is on a growth trajectory to expand its presence across India

Introduction to CCCM (2/2)

A Pan-India

operation for clean

and green India

5

Key Aspects

A Business model

requiring low initial

investments with

high revenue

generation

Low running costs

in terms of

manpower and

resource

requirements

Provides benefits

of corporate

employment to

economically

backward women

Build a socially

conscious

community

A process driven

model that

ensures high

success rates and

ongoing

sustainability

Establish eco-

friendly and

sustainable

practices

Key Objectives

Promote waste

management at

source


CCCM’s journey so far

CCCM has come a long way since inception of the concept in 2007

2007 (July)

Birth of the idea

– Launch of KBF

Clean Kochi

Movement for

Solid Waste

Management

(SWM)

With increasing awareness on eco-friendly and sustainable waste management and effective

stakeholder engagement CCCM is set for a promising growth period.

2007 (Aug)

Initial Pilot – SWM for 25

apartment complexes with 50

women workers

Launch of CCCM.KBF Clean Kochi Movement renamed and registered as Credai Clean City

Movement.

• 11 tonnes of bio degradable

rejections per day

• 164 building complexes consisting of

15000 households

• Institutions such as Naval Base,

NPOL, Infopark, District Hospital and

Ernakulam Collectorate

2010

2016

Plans to establish a profit making enterprise and

initiate Pan – India operations

6

Proven Success

• 80 tonnes of waste per day

• 65000 households• Employment for 690

people• INR 3.6 Lakhs of savings

for Local Self Govts.

2015


Flow of Value in the Operational Model

Operational Model

Compliance support

Regulatory support

Self Help Groups (SHGs)

Logistics Providers

Bio-

manureShred

plastic

Paper

wasteE-waste

Shredding

units

Other

suppliers

Bio-bins/

Trash Guard

suppliers

SHG*Residential associations /

Industrial Bodies

Government

bodies

Environmental agencies

CREDAI Clean City

Households/

Industries

Awareness

Waste

Equipments

Consumables &

maintenance

Packed bio-manureOther waste

Technology

Corporate

sponsors

Implementation team

Marketing team

Research team

Fee collection team

Waste processing team

Shredding

InstallationResearch support and

funding

Buyers* SHG Self Help Group


Capacity in kg -25/35/50/65/80 & 110 kg/DAYNo. of Flats - 25 to 110 Flats Space Required - 80 Sq.ftPower Supply - 3 phasePower Rqmnt - 0.10 units/dayEnd product- Biogas and organic slurry Advantage - Fully automatic and sealed Installation - Ground

Technology

Trash Guard

Capacity in Kg -40 kg/DAYNo. of Flats - 40 Area Required - 250 Sf.No. of bins - 2 binsPower Supply - NilPower Rating - NilEnd product - Compost Advantage - Manually operating system Area of Installation Terrace Area

Bio-digester Bins


Investment Proposition

9


CCCM’S Investment Proposition

10

CCCM is a compelling investment proposition due to the sheer magnitude of the waste management problem in the

country and the focus of the government on Swachh Bharat. Key highlights include:

1. Expansion to Pan India Operations

2. Proven Technology

1. Aims for a pan- India presence with a concentrated presence in the mega cities, smart cities and

industrial parks thus enabling business growth.

2. Opportunity to capitalize on bio-degradable, non-biodegradable, and e-waste from households and

industries

1. The technology has been effectively operational in Kerala for close to 9 years. Handles 80 tonnes of

waste a day currently.

2. Expertise in implementation of multiple technologies:

• Cost effective models such as bio-bins have been successfully implemented in high rise buildings as

well as industrial parks

• Trash guards may be used where manual interventions have to be further minimized.

• Plastic shredding units have been established and operational in Kochi.



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4. Operational Strength

3. Robust Business Model

CCCM has a robust process framework to support the business model. Key processes include ongoing

R&D, supervision and training of ground staff, MIS based strategy formulation, training programmes for

stakeholders , and community outreach programmes and knowledge management . These processes

ensure CCCM is a process driven organization

1. A scalable and replicable model to support quick growth and expansion

2. Focus is on customized , economical and sustainable solutions based on the type of waste and

environmental factors to counter competition from existing players with standard solutions .

3. A plug and play model which provides standardization for operational ease and customization to meet

diversified requirements



12



5. Decentralized Model of Waste Management

6. Expert Consultation and Supervisory Model

1. Processing at source for household waste to minimize the environmental impact of dumping grounds

2. Savings in terms of waste transportation . CCCM currently provides savings of INR 3.6 lakhs per day to

Local Self Governments in Kerala

3. Revenue generation through effective waste recycling and reuse.

1. High success rate of projects due to timely interventions before, during and after commissioning of

projects:

- Awareness creation among waste generators on segregation

- Training of waste collectors on usage of bio-bins

- Supervisory staff monitors ongoing success in terms of effective segregation of waste and usage of bio

culture in bio-bins



13



7. Ability to Handle Diverse Types of Waste

8. Market Opportunities

1. Proven ability to handle biodegradable and non biodegradable waste

2. Biomedical and e-waste technologies being formulated

3. Customized methodologies based on nature of waste produced, quantum of waste and environmental

and climatic factors

4. Industrial waste as well as household waste

1. Huge market opportunities for effective waste management in India:

- Approx. 36.5 million tonnes of municipal solid waste is being generated annually of which less than 5%

is being composted currently.

- 1.8 million tonnes of e-waste being generated annually of which less than 5% is being recycled

formally


Aligned with Government’s Vision

14

Aligned with Government's Swachh Bharat

Vision

Fully aligned with the Government’s vision of

‘Swachh Bharat’ .

Aligned with Startup India / Stand Up India

• Generation of employment for women below

poverty line

• Clear Vision to Tap into the Growing Awareness

of Eco-Friendly living in India

• Aims to capitalize on the friendly startup

ecosystem in India to accelerate growth

Impact on Society

Direct

Employment

Approx. 1 Lakh by

year 5

• Poverty Alleviation by employing

economically backward households

• Ongoing tax revenue for the state and

central governments

• Contribution towards enhancing India’s

image as a Clean Nation promoting Eco-

Friendly Waste Management

Tax Revenue To the Government

• The robust business model of CCCM is

aimed at generating profits from Year 1 itself

& onwards. Post the tax holiday available

for start-ups, CCCM aspires to contribute

towards nation building by contributing to

the tax revenues of the Govt.

Aligned with Smart Cities Initiative

• CCCM aims to align itself with the smart cities

initiative of the Central Government

• Projects in the area of waste management

shall be identified and submitted to the

respective SPVs for approval

• CSR budgets of corporates and government

grants shall be tapped into for funding of

projects


Benefits for CREDAI

15

Green Certificate for Construction

Having an effective solid waste management module

enables obtaining green certificate for projects

Ability to Command Premium Pricing

• Cost effective and proven solution to a nagging

problem in urban areas

• Minimal space requirements and minimal human

intervention

• By-products can be used to promote organic terrace

and balcony garden farming

An opportunity to become leaders of social and cultural change

Goodwill among local bodies, governments and politicians

Impact on Society – Goodwill

Strictly Private and Confidential 16

Transformation from an NGO to a For-Profit Venture


CCM’s Guiding Philosophy

• Utilize experience and expertise in waste management to be the bestsolution provider in India

• Encourage healthy living in healthy homes by collaborating with ourchannel partners.

• Become synonymous as the voice of the developer industry and helpguide governments when formulating policies related to environmental

issues.

To be the largest, most effective and most visible

waste management solution company in India

thereby playing an important and crucial role in

environment management

…our Vision

…our

Objectives

“We are what we repeatedly do. Excellence then is not an act, but a habit”

• Collaborations with corporates, developers, institutions, clubs and resorts, and

government bodies.

• Joint branding exercises with marquee names in select sectors for gaining

additional mileage and positioning.

• Membership in relevant trade bodies and international associations related to

waste management solutions.

…our

Partners

17


Key Steps in CCCM’s Proposed Journey

18

Planned coverage of 33 Indian cities carefully curated based on population

size and Govt’s smart city initiative.

Phase wise expansion plan into select cities with identified potential for waste

management.

Exploring additional technologies

Till date, bio-bins were the preferred technology for CCCM. CCCM shall expand

its technology offerings to trash guards. In addition, focused R&D shall be

carried out to identify and prototype technologies

Focused approach

Focused approach to target 10 Lakhs households in developer projects and

corporation coverage to ensure process driven approach

Key Future Steps – Beyond Year 5

Potential to build own e-waste plant to generate revenue of INR 54 per kg of e-

waste. Processing of paper waste and bio medical waste as additional revenue

sources.


Transforming the Operating Model to Achieve Revenue Growth

19

Pivoting from a ‘pull based’ to a ‘push based model to enable rapid expansion

CCCM has been a non-profit NGO focused only on providing services when requested

for. Going forward, there shall be a strong sales and business development team who

will push the services to potential clients . There shall be adequate marketing of service

offerings and 1% of annual gross revenue has been set aside for marketing expenses.

(Total revenue of INR 443 Cr over a 5 year period)

Unleashing the power of IT for project monitoring

In order to manage the projects spread across diverse geographical locations, IT

enabled solutions shall be relied upon. 1% of annual gross revenue has been set aside

for IT expenses. (Total INR 4 Cr for IT investment over a 5 year period)


Transforming the Operating Model to Achieve Revenue Growth

20

Robust organization structure for effective sales and implementation success

The organization structure consists of a corporate office and 6 Zonal offices (based on

coverage plans) and a robust project management structure consisting of 1 supervisor

for every 500 apartments for developer projects and 1 supervisor per project for

corporation projects, 1 project executive for every 5 supervisors, 1 project manager for

every 5 project executives and 1 project Director for every 5 Project Managers.

Clearly Defined Roadmap on Monetising By-Products

There shall be formal tie-ups entered into with consumers of by-products of waste

management – farmer unions for sale of bio-manure; e-waste processors for sale of e-

waste and recyclers for plastic recycling and sale of shredded plastic. Thus revenue

sources which were previously restricted to installation of bio-bins shall now expand to

include sale of by-products.

(Incremental revenue of INR 195 Crore over a period of 5 years)


Governance Model for CCCM

21

The CCCM Governance

Framework is focused on

enhancing collaboration

between nodal offices and

CREDAI National and to aide

effective implementation

across geographies.

Both working committees shall

liaise with the project

management teams to

facilitate training, go to market

strategy, winning big and high

quality and low cost

implementations .

Working Committee - Technology

Nominated members from

CREDAI local chapters and

CCCM Nodal Offices to meet

on periodic intervals to

evaluate waste management

technologies to be adopted by

CCCM

Board of Directors

Responsible for setting the strategic direction

and reviewing progress of working

committees. Shall include nominated

members from CREDAI National

Working Committee -Revenue

Nominated members from

CREDAI local chapters and

CCCM Nodal Offices to meet

on periodic intervals to

evaluate bottlenecks if any to

achieve revenue targets and

resolve them.

Engagement Directors from Nodal Offices

Core Governance Forum


Proposed Board of Directors and Advisory Panel

22

• There shall be a 7 member Board of Directors in the new entity with equal representation from CCCM

and Credai National and 1 independent director. (assuming 50% stake dilution to Credai National)

• An Advisory Panel shall be constituted with industry experts and retired Govt. officials to guide and

advise the entity regarding new technologies in waste management and how to effectively interact

with the Govt. machinery.

• Corporate Offices of the new entity shall be in Kochi and Zonal Offices shall be set up in 6 major cities

– Delhi, Mumbai, Bangalore, Chennai, Kolkata and Hyderabad.

• Nodal offices shall be set up in each city where operations are commenced. Wherever CREDAI

offices are available a mutually acceptable rental model shall be adopted for establishing the nodal

offices.

• Each nodal office shall be headed by a Program Director under whom the project management team

shall function.


Organizational Structure

Corporate Office

Zonal Office 1

Project Director

Project Managers

Project Executives

Drivers Supervisors

Workers

Project Director

Project Manager

Project Executives

Drivers Supervisors

Workers

....

Zonal Office 2 Zonal Office 3 Zonal Office 5Zonal Office 4 Zonal Office 6


Name registered

Formalities for registering the company in progress

Authorized capital to be 6 crores

Company to be operational by april 2017

Operation to start in 7 cities in the 1st phase

Current status of formation of ‘for profit’ entity

Strictly Private and Confidential 25

Financial Performance - Snapshot


Financial Overview Over The Next 5 Years

26

2017-18 2018-19 2019-20 2020-21 Total

Total number of households

(cumulative)71,400 3,83,800 8,62,000 10,28,000 10,28,000

Total bio-degradable waste handled

from apartments and housing projects

(in tonnes)

25,704 1,38,168 3,10,320 3,70,080 8,44,272

Total non bio-degradable waste

handled (in tonnes)21,000 57,570 61,206 61,818 2,01,594

Total Revenue (in INR Cr.) 25.06 95.89 160.65 160.91 442.52

PAT (in INR Cr.) 6.72 24.22 32.62 25.23 88.80


Financial Overview

Revenue sources are bio-waste, e-waste, and plastic waste

The main element of costs are the salary costs of the project management team and the office admin

expenses

The venture would break even in Year 1 itself

Profit margins are expected to be around 25% from Year 2 onwards

Key Highlights

27

25

96

161 161

-

20

40

60

80

100

120

140

160

180

2017-18 2018-19 2019-20 2020-21

INR

(C

r)

Financial Year

Projected Revenues in INR Cr.

6.72

24.22

32.62

25.23

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

2017-18 2018-19 2019-20 2020-21

INR

(C

r)

Financial Year

Projected PAT


Investment Required

28

Investment Requirement

• The Company seeks an angel investment of INR 6 Crores for a 50% stake dilution. This will allow

the Company to tide over working capital deficits which have been the primary reason why CCCM

has not been able to scale up in the past.

• These funds shall be utilized to expand the operations of CCCM to a Pan – India level and to also

extend its service portfolio to handling of e-waste, industrial waste and waste management

consulting.

TrancheExpected Month of

InvestmentInvestment

Tranche 1 Feb 2017 Rs 3 Crores

Tranche 2 June 2017 Rs 3 Crores


Benefits for Investors (1/2)

29

Profitable Business Model

CCCM has evolved a cost effective and highly profitable -business model that has been operationally

successful. Given adequate seed funding, this can be easily scaled to a Pan-India level.

Huge Potential for Growth

There is a huge untapped business potential for rejection management in India as nearly 95% of waste

management is today done unscientifically by the informal sector.

Enablers Already in Place

India with its large population, vast geographies, diverse climatic conditions, and cultural differences

poses unique challenges for effective waste management.

CCCM with its proven technologies and people capabilities is uniquely poised to capitalize on the vast

opportunities in rejection management.


Benefits for Investors (2/2)

30

Early Mover Advantage

Since India is a nascent market for waste management, CCCM shall enjoy the early mover

advantage .

The focus of CCCM shall be on extending its services as follows:

1. Biodegradable waste management for households in Mega Cities and select Smart Cities.

2. Plastic waste management for households in Mega Cities and select Smart Cities

3. E-waste management for chosen cities

4. Solid waste management for select industrial parks across the country

5. Revenue generation from technical consultations, equipment installation, compost, recycled

and shredded plastic, and metal extraction from e-waste.

E-waste management alone is an industry with $1 billion revenue potential in

India

credaiand registered as credai clean city movement. •11 tonnes of bio degradable rejections per...

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